1st Quarter ended June 30, 2021

Financial Results Supplementary Information

Digital Media Professionals Inc.
August 11, 2021
The views and forecasts that appear in these materials represent determinations made by the Company at the time the materials were created.
The accuracy of the information therein is not guaranteed.
Please be aware of the possibility that actual performance and results may differ considerably due to a variety of factors.

Table of contents
Company Profile・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3Group Business Description・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4
1st Quarter ended June 30, 2021 Results Highlights

P/L・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・5
Net Sales by Business and Field・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6
B/S・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7
1st Quarter ended June 30, 2021 Topics・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8
Fiscal Year Ending March 31, 2022 Business Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
Reference) Major Activities since April 1, 2021・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・10© Digital Media Professionals Inc.

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Company Profile
A fabless semiconductor vendor with experience as one of the world's leading GPU IP vendors since its foundation. In recent years, in order tobecome the world's leading "AI Computing Company," we are contributing to solving customer and social issues by providing end-to-end AI services
from algorithm/software to hardware and from the edge to the cloud.
Month / Year

Company name

Digital Media Professionals Inc. (DMP)

Business
content

IP license, SoC / module development & sales, andcontract development services related to GPU and AI

Foundation

History

July 2002

FoundedJuly 2005

Launched ULTRAY® Visual Processor

July 2002

April 2007

PICA® Graphics IP Core received the Excellence in IP Prize of 9th LSI IP
Design Award

Location

Nakano-ku, Tokyo, Japan

April 2009

Launched SMAPH®-F Vector Graphics IP Core

November 2009

Launched SMAPH®-S 3D Graphics IP Core

Representative

Chairman and CEO: Tatsuo Yamamoto
President and COO: Tsuyoshi Osawa

June 2011

Listed on the Mothers market of the Tokyo Stock Exchange

Capital1,838 million yen

May 2014

Business and capital alliance with UKC Holdings Corporation (currently Restar
Holdings Corporation)

Number of
consolidated
employees

August 2016

Launched the new 3D graphics IP core "M3000" series

65 (as of the end of March 2021)

November 2016

Launched "ZIA™", an image recognition engine using deep learning

March 2018

Started mass production and shipment of next-generation graphics processor"RS1"

May 2019

Business and capital alliance with Yamaha Motor Co., Ltd.

May 2019

ISO 9001: 2015 Certified (Certification body: Intertek Certification Japan Ltd.)

April 2020

Established Digital Media Professionals Vietnam Company Limited

April 2021

Capital and business alliance with Cambrian Inc, USA

Number ofpatents

35 cases

Consolidated
subsidiary

Digital Media Professionals Vietnam Company
Limited© Digital Media Professionals Inc.

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Group Business Description
Business

Description

Major Customers

IP Core*1 License
Business

Development and license offer of hardware IP (logic design data etc.) and software IP (mainly hardware control
drivers and supporting tools for contents creation) necessary for drawing detailed images and artificial
intelligence*2 (AI) such as deep learning*3a) License fee: Compensation through offering IP core license in the process of developing products such ashome appliances by customersb) Recurring revenue
・Running royalty: Compensation received according to the number of products incorporating IP core shipped bycustomers
・Subscription fee: Compensation received from customers based on the actual use of our cloud services (PV:number of page views)c) Maintenance and service fee: Revenue from maintenance of IP based on maintenance contract, etc.

Semiconductor manufacturer/
Manufacturer of final product withembedded semiconductor

・Development, manufacturing (outsourced) and sales of graphics LSI*4 (SoC*5) mainly for amusement equipment
・Development, manufacturing (outsourced) and sales of AI LSI (FPGA*6) for AI equipment
・Sales of vision system (object detection by camera) for collaborative robot*7, otherTrading company/SIer
Manufacturer of final product withembedded Semiconductor

Provision of design service of studying and optimizing the entire SoC system by integrating various IP cores of theCompany, software service of developing and optimizing algorithm based on GPU*8/vision /AI technology
cultivated through development of in-house products, etc.

Manufacturer of final product withembedded semiconductor

Product Business

Professional
Service Business*1: Partial circuit modules within an LSI, designed for a specific function (e.g. graphics IP core). IP stands for Intellectual Property.
*2: Software and system that enable computers to make human-like perceptions and judgments such as computer programs that understand and judge sentences, images, conversations,sounds, etc.
*3: A type of machine learning method that realizes artificial intelligence by utilizing human brain imitated neural network mechanism, which is being commercialized in the field of image
recognition*4: Large-scale integrated circuits composed of silicon wafers (materials with properties intermediate between conductors and insulators used in the manufacture of semiconductor
products). LSI stands for Large Scale Integration and is also called "semiconductor".
*5: Integrated circuit (design method) that integrates a series of functions (systems) required on one semiconductor chip. SoC stands for System on a Chip.
*6: Integrated circuit that allows buyers or designers to set and change the configuration after manufacturing. FPGA stands for Field Programmable Gate Array*7: Robot that can works together with people without safety fences*8: Arithmetic unit or processor specialized in real-time image processing represented by computer games. GPU stands for Graphics Processing Unit. By utilizing its better performance inparallel computing performance than CPU, technologies called GPGPU (General-Purpose computing on GPU) that apply its computing resources to purposes other than image
processing are applied to the AI​​/deep learning field.

© Digital Media Professionals Inc.

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1st Quarter ended June 30, 2021

Results Highlights: P/L

Revenue grew mainly due to revitalization in the robotics field(Unit: million yen)

Net sales
OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

1st Quarter ended 1st Quarter ended
June 30, 2020
June 30, 2021

Amountchange

229

250

+21

-114

-95

+18

-93

-95

-2

-93

-96

-2

⚫ Net sales in the IP license and product businesses were almost the same as the same period of theprevious fiscal year, but operating loss improved due to increased sales in the professional service
business mainly in the robotics field.
⚫ Ordinary loss and net loss attributable to owners of parent worsened slightly year on year due to theabsence of 21 million yen in subsidy income related to the NEDO projects, which was recorded as nonoperating income in the same period of the previous fiscal year.
© Digital Media Professionals Inc.

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1st Quarter ended June 30, 2021

Results Highlights: Net Sales by Business and Field• The number of business projects in PoC and practical use stage increased in the robotics field.
• IP licensing and professional services for new customers/projects are expected to be active from thesecond quarter in the safe driving assistance field.
●Sales by business●Sales by field

IP core license business ¥25 million

Same period¥28 million
last year●Recorded GPU running royalties for digital equipment, new IP license revenue
for robotics field, and recurring revenue in safe driving assistance field

Safe driving assistancefield¥3 million¥171 million

Same period¥166 million
last year●Recorded sales of RS1 for mass production and camera modules for drones

Robotics field¥53 million

Same period¥34 million
last year●Contracted AI development services, mainly for the robotics field, became
more active, although contracted income from the NEDO project was lost.

¥57 million

Same period¥31 million
last year●In addition to new IP license revenue, AI contract development projects
are becoming more active.

Amusement field
Professional service
business¥3 million●Recorded 2 million yen of recurring revenue (running royalties andsubscription fees) (no revenue for the same period last year)●Decrease in GPU-related maintenance and support revenue

Product business

Same period
last year¥171 million

Same period¥166 million
last year●Recorded sales of RS1 for mass production

Other¥18 million

Same period¥28 million
last year●Contracted income from NEDO recorded in the same period last year was lost,
although GPU running royalties for digital equipment were recorded.
© Digital Media Professionals Inc.

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1st Quarter ended June 30, 2021

Results Highlights: B/S

Equity ratio remains high at 92.8%
End ofMarch 2021

End ofJune 2021

AmountchangeCurrent assets

2,736

2,636

-100

Accounts receivable - trade andcontract assets -77, Other -46

Non-current assets

740

763

+22

Investment securities +41
Software -13

3,477

3,399

-77

Current liabilities

208

226

+18

Non-current liabilities

18

18

+0

Total liabilities

227

245

+18

Total net assets

3,250

3,154

-95

Total liabilities andnet assets

3,477

3,399

-77

(Unit: million yen)

Total assets© Digital Media Professionals Inc.

Major factors

Accounts payable - trade +33

Retained earnings -96

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1st Quarter ended June 30, 2021

TopicsStrengthening and accelerating efforts to develop products and services, expand customer base, andform technological alliances in focused fields
安全運転支援分野
Safe driving assistance field

Robotics field・Released ZIA™ MOVE
Released ZIA™ MOVE, an integrated software platform that includes ZIA™
SLAM, a high-precision SLAM software, and is fully equipped with perception,
judgment, and operation functions required for automatic and autonomous
driving of robotic vehicles.
ZIA™ SLAM evaluation kit is also available.

・Released "ZIA™ Wire"

Released "ZIA™ Wire," an AI recognition model for
detecting power lines, fences and other wires fordrones and unmanned robots.

・Started offering upgraded "ZIA™ ISP"

Released "ZIA™ ISP," an imaging signal processor (ISP) core that newly
supports the high dynamic range (HDR) function of image sensors.

・Released ZIA™ Showcase, a platform for demonstrating andbenchmarking the latest edge AI recognition models
By accessing AI recognition models related to ADAS and DMS supported by
ZIA™ Showcase and multiple hardware,customers can easily evaluate and verify the
optimal combination of AI recognition models
and hardware online and in real time using
their own data sets, thereby contributing to
the efficiency of product development.
→ Robotics field is also covered starting with ZIA Wire.

・Adopted for new projects by new and existing customers

・Business projects in the PoC and practical use stages, including
those with Yamaha Motor, are becoming more active.

Acquired new projects for new and existing customers, leveraging the strengthof our integrated edge (ZIA™ SAFE) to cloud (ZIA™ Cloud SAFE) support andflexible billing model.

Collaborating with Yamaha Motor on AI implementation in various products,
including field tests
Active business projects with other customers, mainly in PoC

・Continued adoption of ZIA™ C3 module for
perimeter monitoring of commercial vehicles

・Started promoting Cambrian's vision system

Started promoting vision systems for collaborative robots
from Cambrian, a capital and business partner. Aiming to
expand domestic market share with high-speed recognition,high picking success rate, and cost performance.

Adopted for mass production project following
the previous fiscal year

© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2022

Business Forecast
Q1 sales and large-scale order (to be delivered to the customer from the second through thefourth quarter) for the "RS1" image processing semiconductor for the amusement market
totals 1,150 million yen, which exceeds the initial RS1 sales forecast of 840 million yen.
FY 03/2021(Actual)(Unit: million yen)

FY 03/2022(Forecast)

Net sales

1,009

1,500

Operating income

-425

-250

Ordinary income

-361

-250

Net income attributable toowners of parent

-364

-252

⚫ Q1 net sales grew mainly due to the activation of the Robotics field, while profit (loss) level was almost the same as the same period
last year.

⚫ From Q2 onward, IP licenses and professional services for new customers/projects are expected to be active in the safety driving
assistance field. In the robotics field, an increase in business projects is expected to continue in the PoC and practical use stages.
⚫ There is no change to the full-year consolidated business forecast announced on May 14, 2021 at this moment. The impact of thelarge-scale order for RS1 on the consolidated business forecast will be closely examined, and if there is anything that needs to bedisclosed, it will be announced promptly.
© Digital Media Professionals Inc.

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Reference) Major Activities since April 1, 2021
Each item is linked to PR/IR news (in Japanese or English) of DMP’s website.
Date ofAnnouncement/
Event

Details

April 9, 2021

Capital and Business Alliance with Cambrian Inc, USA, a Developer and Seller of Vision System for Collaborative Robots

April 9, 2021

Notice of Medium-term Business Direction

April 9, 2021

DMP, Launch External Sales of Camera System, the Result of Collaboration with Yamaha Motor

April 23, 2021

Released ZIA™ Showcase

May 14, 2021

Notice of Medium-term Business Plan

May 14, 2021

DMP developed ZIA™ MOVE, an integrated software platform for automatic and autonomous driving for robotic vehicles

May 14, 2021

DMP Developed ZIA™ Wire, Wire-Detecting AI Recognition Model for Drones

June 23-25, 2021

Collaborative Robot Demonstration Using DMP’s Safety Monitoring AI Recognition Software at Ryosan’s Booth at INDUSTRY-FRONTIER 2021

June 29, 2021

DMP to Start Providing ZIA™ ISP that supports HDR Function of Sony's IMX390 Image Sensor

June 29, 2021

Presentation at a Webinar Hosted by PALTEK (Proposal of High-definition Image Processing Kit and AI Inference Module Suitable for
Robotics/AGV)July 7, 2021

DMP, ITD Lab Work Together in the Robotics Field

August 11, 2021

Notice of Large-scale Order for RS1, Image Processing Semiconductor for the Amusement Market© Digital Media Professionals Inc.

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<Inquiries>
Digital Media Professionals Inc. Corporate Planning Department
Tel. +81-3-6454-0450
URL: https://www.dmprof.com/en/ir/

Forward-looking statements contained within this document are based on currently available
information and involve risks and uncertainties, including macroeconomic conditions andtrends in the industries in which we are engaged. As such, actual results may differ
materially from those anticipated.

© Digital Media Professionals Inc.

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