(This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this document and the Japanese original, the latter shall prevail.)
Summary of Consolidated Financial Results for the Three Months ended June 30, 2020 (Japanese GAAP)
August 7, 2020
Company name: Digital Media Professionals Inc.
Listing: Tokyo Stock Exchange
Code number: 3652
URL: https://www.dmprof.com/en
Representative: Tsuyoshi Osawa, President and COO
Contact person: Hiroshi Yamaguchi, Manager, Corporate Planning
Tel. (03) 6454 - 0450
Scheduled date of filing Quarterly Securities Report: August 7, 2020
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: Yes
Briefing session on the quarterly financial results: No
1. Consolidated financial results for the three months ended June 30, 2020 (April 1, 2020 through June 30, 2020)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net income attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
3 months ended June 30, 2020
229
△114
△93
△93
－
－
－
－
3 months ended June 30, 2019
－
－
－
－
－
－
－
－
Reference) Comprehensive income: △93 million yen as of June 30, 2020; - million yen as of June 30, 2019

Net income per shareyen△29.95－3 months ended June 30, 2020
3 months ended June 30, 2019

Net income per sharedilutedyen－－

Since the quarterly consolidated financial statements have been prepared from the first quarter of the fiscal year ending March 2021,
the figures for the first quarter of the fiscal year ended March 2020 and the rate of change year on year are not stated.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of June 30, 2020
3,684
3,449
As of March 31, 2020－－
Reference) Shareholders' equity: 3,449 million yen as of June 30, 2020; - million yen as of March 31, 2020

%
93.6
－

Since the quarterly consolidated financial statements have been prepared since the first quarter of the fiscal year ending March 2021,
the figures as of March 31, 2020 are not stated.

2. Cash dividends

Year ended March 2020
Year ending March 2021

1Q-endyen-

Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
0.00
0.00

0.00
Note) Revision of dividends forecast during the period: None

Year ending March 2021 (Forecast)

-

0.00

Total
yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2021 (April 1, 2020 through March 31, 2021)
Forecasts of consolidated operating results for the year ending March 31, 2021 are undecided because it is difficult to reasonably calculate the impactof the new coronavirus infection on such as gaming machine industry and customers' investments in development at this stage.
They will be disclosed as soon as reasonably predictable. For more details, please refer to "1. Qualitative information on quarterly financial results(3) Consolidated financial forecasts and other forward-looking statements."Note) Revision of forecasts during the period: None

Notes:1. Changes in significant subsidiaries during the current consolidated cumulative period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
2. Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies(1) Changes in accounting policies resulting from revisions of accounting standards: None
(2) Changes in accounting policies except (1): None
(3) Changes in accounting estimation: None
(4) Restatement: None
4. Number of shares issued(1) Number of shares issued at the end of the period (including treasury shares)
As of June 30, 2020

3,131,700 shares

As of March 31, 2020

3,131,700 shares

As of March 31, 2020

1,069 shares(2) Number of treasury shares at the end of the period
As of June 30, 2020

1,689 shares(3) Average number of shares issued during the period
3 months ended June 30, 2020

3,130,148 shares

3 months ended June 30, 2019

2,934,077 shares

Note: Explanation regarding the appropriate use of business forecasts and other special notes
The forward-looking statements such as business forecast in this document are based on information currently available to
the Company and on certain assumptions deemed to be reasonable. The Company does not guarantee the achievementof the forecasts. Actual results may differ significantly for a number of reasons.
For the conditions and notes on the use of business forecast, please refer to"1. Qualitative information on quarterly financial results (3) Consolidated financial forecasts and other forward-looking statements."

1. Quarterly financial results(1) Operating results
Since the Company has prepared quarterly consolidated financial statements from the first quarter of the current
consolidated fiscal year, it does not provide a year-on-year comparison of operating results and financial position.

During the first quarter of the current fiscal year, the Japanese economy was in a difficult situation in terms of corporate
earnings and personal consumption due to the impact of the new coronavirus infection. In addition, the global economy
was also in a difficult situation due to the global pandemic of a new coronavirus infection. As for the future, it is necessary
to take extremely difficult steps to gradually raise the level of economic activity while taking measures to prevent the
spread of infection.
Even in the semiconductor industry to which our group belongs, the impact of the economic downturn is unavoidable
at present, but in the medium term, demand is expected to grow for IoT that connects everything to the Internet, artificial
intelligence (AI), big data, next-generation high-speed communication standards, and autonomous driving.
In the AI/visual computing field, which is our group's business domain, the acceleration of innovation and the increasingrole of AI in solving social issues, including current difficulties, and in realizing a safe and secure society are expected.
In such an environment, our group will strive to become the world's leading "AI Computing Company" by contributing
to solving social issues through providing AI solutions that leverage the strength of having a consistent development
system of AI algorithms, software and hardware.
As concrete measures and results during the first quarter of the current consolidated cumulative period, we firstly
established a subsidiary, Digital Media Professionals Vietnam Company Limited, which provides engineering services
in Ho Chi Minh City, Vietnam, and started business on April 1. We will utilize high-quality human resources in Vietnam
to strengthen and complement our development system, and in the future, aim to make it a bridgehead for our overseas
business to cultivate AI-related markets in Southeast Asia, including Vietnam.
Meanwhile, in the area of AI products, we continued to expand our AI product lineup by releasing ZIA™ DV740, an
upgraded version of the ZIA™ DV720 edge AI processor IP core, targeting at markets that require high-performanceand high-accurate AI recognition processing, such as robotic vehicles, surveillance cameras, drones, and augmented
reality (AR) / virtual reality (VR), and ZIA™ ISP, an image signal processor (ISP) IP core that contributes to higher
image quality and performance of AI camera devices such as robotic vehicles, drones and security cameras. Bothproducts have been offered to some customers in advance. In the area of safe driving assistance, we have acquired a
new stock business (subscription model), which is expected to generate stable and continuous revenue from thesecond half of this fiscal year.
In addition, we have promoted collaborations and alliances in Japan and overseas to expand our business. Overseas,
we have formed alliances with Prophesee in France for the development of embedded machine vision and artificial
intelligence (AI) applications using Prophesee's event-based vision sensors, and with Basemark in Finland for thedevelopment of smart mirrors for commercial vehicles. In Japan, we have jointly developed vehicle AI evaluation kitswith Silex Technology and PALTEK to support the development of AI-based safety, remote, and automation solutions.
Furthermore, as businesses regarding the New Energy and Industrial Technology Development Organization (NEDO),
we not only have continued to operate AI edge contests in the commissioned project of "Survey of issues for finding
ideas regarding Technology Development for AI Chip and Next generation Computing for High-efficiency and Highspeed Processing" but also have worked on subsidized projects of the development of "AI Platform for Artificial
Intelligence (AI): An Energy Efficient AI Engine" and "Research and development of AI hardware for AI pathology
imaging system for cancer companion diagnostics."-1-

Regarding the business results for the first quarter of the current consolidated cumulative period, mass production
shipments of the image processing semiconductor "RS1" continued in the LSI product business. In the IP core licensebusiness, we acquired new license business for robotic vehicles, despite a decline in running royalties for digitalequipment. In the professional service business, in addition to the commissioned revenue in NEDO's AI edge contest
operation, we got orders for contracted development services for robotic vehicles.
As a result, for the first quarter of the current consolidated cumulative period, we recorded net sales of 229 million yen,operating loss of 114 million yen, ordinary loss of 93 million yen mainly due to the recording of 21 million yen in subsidy
income from NEDO as non-operating income, and net loss attributable to owners of parent of 93 million yen.

Although our group has a single business segment, each business result is shown below in order to show businesstrends.
1) IP core license businessNet sales were 28 million yen attributable to new licenses of GPU and AI, running royalties from existing customers
and revenue from maintenance support.
2) LSI product businessNet sales were 166 million yen attributable to the sales of the "RS1" mass production and AI FPGA module "ZIA™ C3."
3) Professional service businessNet sales were 34 million yen due to the booking of AI-related contracted development sales and NEDO contracted
development sales.

(2) Financial position(Asset)Current assets at the end of the first quarter of the current consolidated fiscal year were 2,939 million yen, mainly
consisting of cash and deposits of 2,182 million yen, securities of 444 million yen and accounts receivable of 187 million
yen. Fixed assets amounted to 745 million yen, mainly consisting of software of 140 million yen and investment
securities of 499 million yen.
(liabilities)
Current liabilities and non-current liabilities at the end of the first quarter of the current consolidated fiscal year totaled
234 million yen, mainly consisting of accounts payable of 171 million yen.
(Net assets)
Total net assets at the end of the first quarter of the current consolidated fiscal year were 3,449 million yen, mainly
consisting of capital stock of 1,804 million yen, capital surplus of 1,823 million yen and retained earnings of -169 million
yen.
As a result, the equity ratio was 93.6%.

(3) Consolidated financial forecasts and other forward-looking statements
Regarding the new coronavirus infectious disease, although the state of emergency declaration has been lifted andeconomic activities are being resumed, the number of people infected with the new coronavirus is on the rise nationwide,
and the situation remains unpredictable.
In the amusement market, which is one of the Group's main markets, it is assumed that the old regulation gamemachines will be removed and replaced with the new regulation game machines systematically at the request of the-2-National Police Agency and the efforts of industry groups. However, the occupancy rate of halls, gaming machinepurchasing policies, and product plans of gaming machine manufacturers remain uncertain. In addition, there is atendency for some AI-related customers to restrain development investment.
Based on the above, the consolidated financial forecast for the fiscal year ending March 2021 remains undecided
because it is difficult to reasonably calculate the impact of the new coronavirus infection at this stage. We will announce
the earnings forecast as soon as it becomes possible to calculate it.

-3-2. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets(Yen thousand)Current Q1 period(As of Jun 30, 2020)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
Finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

2,182,955
187,639444,584
4,186
10,25047,35562,3302,939,302
38,012140,09125
140,117499,540
67,572567,112745,2423,684,545

171,144
5,381
39,634
216,160
1,619
16,96818,587
234,748

1,804,592
1,823,803-169,597-1,525
3,457,272-7,475-7,4753,449,796
3,684,545-4-

(2) Quarterly consolidated statements of income and comprehensive income
Consolidated quarterly statements of income(Yen thousand)Current Q1 period (YTD)(From Apr 1, 2020
To Jun 30, 2020)
Net sales

229,456

Cost of sales

158,998

Gross profit

70,458Selling, general and administrative expenses

185,166

Operating loss

-114,708

Non-operating income
Interest income

570

Subsidy income

21,600Miscellaneous income

4

Total non-operating income

22,174Non-operating expenses
Foreign exchange losses

706

Miscellaneous loss

0

Total non-operating expenses

707

Ordinary loss

-93,240

Loss before income taxes-93,240

Income taxes - current

572

Income taxes - deferred-55

Total income taxes

516

Loss

-93,757

Loss attributable to owners of parent-93,757

Consolidated quarterly statements of comprehensive income(Yen thousand)Current Q1 period (YTD)(From Apr 1, 2020
To Jun 30, 2020)
Loss-93,757

Other comprehensive income
Valuation difference on available-for-salesecurities
Total other comprehensive income

9090Comprehensive income-93,666

Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests-93,666--5-