This document has been translated from the Japanese original for reference purposes.
In the event of any discrepancy between this document and the Japanese original, the latter shall prevail.

MAKING THE IMAGE INTELLIGENT

Fiscal Year Ended March 31, 2023

Results Briefing
Digital Media Professionals Inc.
May 12, 2023
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.

1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2023

2

Business Forecast, Fiscal Year Ending
March 31, 2024

3

Priority Measures, Fiscal Year Ending
March 31, 2024

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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2023

2

Business Forecast, Fiscal Year Ending
March 31, 2024

3

Priority Measures, Fiscal Year Ending
March 31, 2024

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Company Profile
Leveraging our experience and knowledge as one of the world's leading graphics IP vendors, we have recently been contributing
to solving customer and social issues by providing end-to-end AI services from algorithm/software to hardware and from theedge to the cloud.
Company name

Digital Media Professionals Inc. (DMP)

IP core license business

Foundation

July 2002

・AI/GPU IP core license
・AI software license

Location

Nakano-ku, Tokyo, Japan

Representative

Chairman, President and CEO
Tatsuo Yamamoto

Capital1,838 million yen

Number of
consolidated
employees

65 (as of April 1, 2022)

Number ofpatents

35 cases

Consolidated
subsidiary

Digital Media Professionals Vietnam
Company Limited(Listed on TSE Mothers in June 2011, shifted to TSE Growth in April 2022)

Product business・Image processing LSI for amusement market
・Vision system for collaborative robot
・AI FPGA module

Professional service business

M A KING T H E IM A GE INT E LLIGE NT

・AI algorithm/computer vision software contracted development
・FPGA/Board contracted development
・Customer product/service support related tosafe driving assistance system and robotics

4Fiscal Year Ended March 31, 2023

Business Highlights• Full-year sales broke the record. Operating income, ordinary income, and net income attributable to owners of
the parent achieved profitability for the first time in three years since the fiscal year ended March 31, 2020 (nonconsolidated results).
• In the robotics field, professional service business declined due to a decrease in customers’ R&D projects, but
sales in the amusement field increased significantly, and sales in fields of safety and other IP also expanded.

Overall

Sales by businessNet sales

IP Core License

SafetyRobotics¥ 2,322M¥ 261M¥ 170M¥ 185M（YoY* +39％）
Ordinary income¥ 28M（YoY ¥ +151M）（YoY +50%）

Sales by field（YoY +4%）（YoY -21%）

Amusement

Other¥ 1,821M¥ 144M

Product¥ 1,956M（YoY +63%）
Professional service（YoY +58%）（YoY +29%）¥ 104M（YoY -65%）* YoY :Year on YearM A KING T H E IM A GE INT E LLIGE NT

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Fiscal Year Ended March 31, 2023

Results Highlights: P/L
Achieved significant revenue growth and returned to profitability due to sales expansion
in the product business and IP core license business(Unit: million yen)

FY ended March
31, 2022

FY ended March 31, 2023
Forecast on
ActualMay 13, 2022

AmountAmount changechange YoY
vs. Forecast

Net sales

1,667

2,370

2,322

+654

-47

Operating income

-126

25

27

+153

+2

Ordinary income

-122

25

28

+151

+3

Net income attributableto owners of the parent

-157

20

22

+179

+2

⚫ Net sales increased 39.2% due to an increase in the product business, mainly in the amusement field, and anincrease in the IP core license business, mainly in the safety field due to increased recurring revenues.
Operating income improved by 153 million yen and returned to profitability.
⚫ Ordinary income and net income attributable to owners of the parent also returned to profitability.

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Fiscal Year Ended March 31, 2023

Results Highlights: Net Sales by Business and Field●Sales by business
IP core licensebusiness●Sales by field¥261 million

Same period
last year¥173 million●Recorded GPU license revenue, AI/GPU running royalties for digitalequipment, recurring revenues in safety/robotics fields, maintenance/support
revenues, etc.

Product business¥1,956 million

Same period¥1,199 million
last year●Recorded revenues, including volume shipments of RS1, volume shipments
of ZIA C3 kit for peripheral monitoring of commercial vehicles, camera
modules for mass production of drones, and Cambrian vision systems

Professional service
business¥104 million

Same period
last year¥295 million●Recorded revenues from contracted development services in the safety,
robotics, and amusement fields●R&D projects for robotics customers decreased

Safety field¥170 million

Same period
last year¥163 million●Recorded recurring revenues (running royalties including that from OTA andsubscription fees) and professional service revenues related to dashcams●Recorded revenue from volume shipments of ZIA C3 kit for peripheral
monitoring of commercial vehicles

Robotics field¥185 million

Same period
last year¥236 million●Recorded revenues, including camera modules for mass production of drones,
and Cambrian vision systems●R&D projects for robotics customers decreased, resulting in a decline in sales
in the professional service business

Amusement field¥1,821 million

Same period¥1,155 million
last year●Recorded sales of RS1 for mass production

Other¥144 million

Same period
last year¥111 million●Recorded GPU license revenue, AI/GPU IP running royalties and IP
maintenance/support revenues for digital equipment* OTA (Over-the-Air): Technology to send and receive data (software) via wireless communication

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Fiscal Year Ended March 31, 2023

Results Highlights: B/S

Equity ratio remains high at 81.3%
Continued to secure funds for working capital and investments for enhancement of R&D system

End ofMarch 2022

End ofMarch 2023

AmountchangeMajor factors

Current assets

2,784

3,683

+899

Accounts receivable - trade and contract
assets +444, Cash and deposits +433

Non-current assets

688

158

-529

Investment securities -499

3,472

3,842

+369

Current liabilities

358

700

+341

Non-current liabilities

18

17

-0

Total liabilities

376

717

+341

Total net assets

3,095

3,124

+28

Total liabilities andnet assets

3,472

3,842

+369

(Unit: million yen)

Total assets

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Accounts payable - trade +292

Retained earnings +22

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Fiscal Year Ended March 31, 2023: Progress of initiatives

Safety Field⚫ Recurring revenue from existing projects across edge to cloud, including OTA (Over the Air) projects, as well
as new licenses and professional services for new customers and new projects for existing customers⚫ Continued research and development for broader safety areas

Car exterior and interior (driver) monitoring

Local Government
Public Transportation

Smart City

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Public Safety9Fiscal Year Ended March 31, 2023: Progress of initiatives

Robotics Field⚫ Refined and improved the accuracy of a seamless software platform (ZIA MOVE) for recognition, judgment,
and operation that includes self-location estimation (ZIA SLAM), which is necessary for autonomous driving.
⚫ Sales and business deals of the Cambrian vision system expanded, mainly to the manufacturing industry, due
to its accuracy and speed in recognizing target parts and its robustness against ambient light. Inquiries fromthe industries of food, pharmaceuticals, and cosmetics also increased.
Recognition

Operation

Judgment

ZIA MOVE

Manufacturing

Transportation/
Logistics

Construction

Agriculture

Advanced AMR

Cambrian Vision System

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Fiscal Year Ended March 31, 2023: Progress of initiatives

Amusement Field⚫ Real-time 3D engine and high-performance, high-compression video engine on a single chip (industry's first),
enabling both beautiful video expression and reduction of machine chassis cost
⚫ Continued volume production shipments of RS1, primarily for pachislot machines, including 6.5 model andsmart pachislot, which have been enjoying high utilization.
⚫ Sales of ZEEG chassis equipped with RS1 exceeded 10 models and 100,000 units. (December 2022)

×

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Fiscal Year Ended March 31, 2023: Progress of initiatives

Other Field (IPs for digital equipment)⚫ Provide small size, low power consumption, and high-performance IP optimized for customers' digitalequipment applications and embedded SoCs
⚫ ZIA DV720 high-definition edge AI processor has been adopted for TVS REGZA's two new series of 4K
REGZA TVs, and running royalty income has been recorded since the current fiscal year
⚫ Development of AI IP processor that significantly surpasses the performance of current products is in the
final stages

GPU IPAI IP
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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2023

2

Business Forecast, Fiscal Year Ending
March 31, 2024

3

Priority Measures, Fiscal Year Ending
March 31, 2024

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Fiscal Year Ending March 31, 2024

Consolidated Business Forecast
12% increase in net sales and expansion of profitability for the fiscal year ending March 31, 2024
Under the Purpose "Making the Image Intelligent," contribute to "realization of a safe and secure society"and "solution of social issues," while aiming for stable growth in image processing semiconductors
FY 03/2023(Actual)

FY 03/2024(Forecast)

2,322

2,600

Operating income

27

150

Ordinary income

28

150

Net income attributableto owners of the parent

22

120

(Unit: million yen)

Net sales• Amusement: Stable growth for RS1 image processing semiconductors (considering the issues of procurement of materials
and securing manufacturing capacity for manufacturers)• Safety: Cultivate existing customers and acquire new customers by leveraging the strength of the ZIA SAFE series, which
support from edge to cloud, and aim to scale up from a focus on PoC for a broader range of safety applications.
• Robotics: Capture the autonomous and collaborative robotics market by leveraging the strength of ZIA MOVE/SV, Cambrianvision system, etc.
• Other (IP): Acquire new IP business in addition to stable business base such as GPU IP running royalties
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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2023

2

Business Forecast, Fiscal Year Ending
March 31, 2024

3

Priority Measures, Fiscal Year Ending
March 31, 2024

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Our Purpose
Making the Image Intelligent"To create innovative products and services thatharness the power of image intelligence to solve
real-world problems and drive value for our
stakeholders.“

Fiscal Year Ending March 31, 2024: Priority Measures

Image Intelligence
Since its founding, DMP has consistently worked on image-related technologies throughGPUs, computing, and edge AI. We will continue to contribute to society through image
intelligence.
⚫ New AI technologies such as GPT4 will be able to understand not only text, but also images, and extract
valuable insights and patterns from the vast amount of images produced every day.
⚫ Image understanding will create new value in various fields, improve people's lives, and contribute to therealization of a safe and secure society.

••Prevention of crime and terrorism through surveillance camera images•

Realization of safe driving in self-driving vehicles by monitoring both inside and outside the vehicle•

Safe operation of autonomous robots and safe interaction with humans•

Early detection of diseases and anomalies through image analysis in the medical field

Edge AI will solve important problems such as privacy issues in the use of images

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Fiscal Year Ending March 31, 2024: Priority Measures

New Organization as of April 1, 2023

Aim for balanced growth in existing and new areas• Established Technology Product Division and Robotech Mobility Division, focusing on respectively
LSI/IP business and new robotics/safety related business• Integrated hardware, software, and AI development into the Development Division to optimize
resources and share design assets• Established the Product Planning Group within the Development Division to better respond tomarket demands
Chairman & President
Senior Managing
Director

Technology
Product Div.
• Amusement• IP

Robotech
Mobility Div.
• Robotics• Safety

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Development
Division• Product planning• Hardware• Software• AI

Quality
Assurance
Department

Corporate
Planning
Department

Accounting
Department

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Fiscal Year Ending March 31, 2024: Priority Measures

DMP’s Strengths - Technologies Enabling Domain Optimization
DMP can optimize AI processing for the domain, including hardware

AI flow

Learning

Data

Inference

DMP’s Products &Services

Cloud

Execution
environment

DMP’s cloud service

Edge

MOVE
Algorithm
development

Development
process

Softwareoptimization
Hardwareacceleration

DMP’s integrated softwaredevelopment platform

DV700
A3000
DMP’s edge AI inference processor

DMP
Competitions

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Support customers' smooth transition from prototype (PoC) to
deployment by understanding the domain and developingwith final implementation in mind
Almost no AI development company understands the execution environment,
resulting in a lot of rework in the process of deployment

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Fiscal Year Ending March 31, 2024: Priority Measures

DMP’s Focused Fields

SafetyRobotics
Amusement

Safe driving assistance system
DMS/ADAS
Cloud service
Amusement SoC RS1Graphics module
AI inference processor IP
Camera IP (ISP＆Stereo)
GPU IP
Camera moduleGPU
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Autonomous driving
technologies
Visual SLAM
Picking system

Low-power IP

Computer
VisionEdge & Cloud
Computing20

Fiscal Year Ending March 31, 2024: Priority Measures

Amusement FIeld• Market size is bottoming out. Pachislot, the main market for RS1, has recovered to over 700,000 units for the firsttime in five years, driving the market– Pachislot machines are being replaced by new 6.5 model and smart-pachislot machines– Despite the high evaluation of both pachinko and pachislot machines after their introduction, some models failed to sell as expected due to ashortage of parts and materials• RS1– Expanding market share by leveraging its strength as the industry's only LSI with both 2D and 3D graphics– Expect further increase in sales in the future as several customers other than SEGA SAMMY have started shipping models equipped with RS1– Expect to increase the number of customers through spread of the use of ZEEG’s common chassis in the industry

DMP
Forecast

RS1: Industry's only LSI with 2D/3D graphics
Pachislot
Pachinko
Pachinko

Pachislot

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Source: Pachinko and Pachislot Sales Results 2022
(pachinkovillage.com)

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Fiscal Year Ending March 31, 2024: Priority Measures

Robotics and Smart Mobility Initiatives
ZIA MOVE：ZIA SAFE / ZIA Cloud SAFE：

Point of differentiation: Full pipeline ofautonomous driving based on low-cost,environmentally variable VSLAM (Visual SLAM)

Point of differentiation: High recognition
performance and flexible and scalable system
configuration by combining edge and cloud

Leveraging VSLAM capabilities, collaborate with
AMR/AGV vendors for service robots for logistics,
manufacturing, and construction industries• Develop non-dashcam safety markets forsurveillance cameras, public transportation
vehicles, buildings, schools, daycare centers

M A KING T H E IM A GE INT E LLIGE NT• ZIA SAFE to support model-based development(RTMaps) to be introduced to automotive OEMs,
Tier 1s, and the construction machinery industry.

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Fiscal Year Ending March 31, 2024: Priority Measures

Integration of Robotics and Safety▪ Image analysis during autonomous driving by ZIA SAFE and ZIA MOVE cooperative operation, andvisualization of image analysis position by MAP▪ Trend analysis based on BIG DATA analysis by ZIA Cloud SAFE service, and provision of integrated
services with external systems
AMR/AGVAMR/AGV
Common MAP

OEM

MOVE

Autonomous driving + Real-time
analysis• V-SLAM• Path Planning and driving control• Perimeter monitoring by ZIA SAFE
and adding information to MAP

Model-based development
support (RTMaps)

Dashcam
Surveillance
CameraReal-time analysis• Human/object detection, location, tracking, ride
detection• Environment (floor dirt, hazardous materials,
door open/close, left behind)• Traffic light, license plate detection

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Cloud service• Cloud analysis of ADAS and DMS• Integration with off-vehicle systems• Dynamic route determination• Report generation

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Fiscal Year Ending March 31, 2024: Priority Measures

Cambrian Vision System•••

Several customers have begun to install the system on their assembly lines.
Major automakers and Tier 1s have also begun trial installations, and inline installations are
expected to accelerate from now on.
Strengthened cooperation with major robot arm vendors, newly supporting Doosan, Fanuc, andDenso Wave
Utilize established dealer network and support strengthening dealer's own demonstration and sales
promotion capabilities
Attaching a camera to a commercially available
robot arm enables various tasks such as picking,assembly, insertion, and operation

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NEW

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Fiscal Year Ending March 31, 2024: Priority Measures

Cambrian Vision System
Develop new market segments with a clear competitive advantage (e.g., picking plastic bottles)
Processing speed and workpiece size

Workpiece color and external lighting

Cambrian can recognize small workpieces of 1 mm
or less in less than 0.2 seconds

Cambrian requires no lighting and can detect
transparent and opaque workpieces.
Transparent parts

Fast recognition time (<0.2 s)Cambrian
Workpiece size
Small

Big

Comp. K

Company K

Company M

Need nolighting

Needlighting

CompanyO

Company KR

Company M
Comp. KR
Comp. O

Slow recognition time(>2.0 s)

Opaque parts

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Fiscal Year Ending March 31, 2024: Priority Measures

Cambrian Vision System
Detect the correct posture of transparent bottles and feed them to the following process• Perform up-and-down judgment• Pick by considering the posture of the bottle and feed it to the following processMovie

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Fiscal Year Ending March 31, 2024: Priority Measures

AI Inference Processor IP

Factory automation

DMP AI Inference Processor IP• ZIA DV740• A3000

Consumer

Construction/Farmmachinery

Mobility
Surveillance camera
Smart city
Facility management
MedicalFPGA
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Robotics

ASIC

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Fiscal Year Ending March 31, 2024: Priority Measures

AI Inference Processor IP A3000
DV700 series adopted in REGZA and other high-volume products
DMP AI Processor DV720 adopted for REGZA's new processor ZRαEnabling real-time high bit-accuracy signal processing and stateof-the-art super-resolution

Focus by determining scene perspective

Image enhancement for the Net bandwidth

Beautiful skin effectNoise reduction

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Next-gen AI inference
processor IP A3000

6x performance over
DV740 (4TOPS)

Start licensing in the second quarterof fiscal year 2023
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Fiscal Year Ending March 31, 2024: Priority Measures

Future Growth
Strengthen ZIA platform, and AI product business centered on Cambrian Vision System
Cambrian Vision System: Expand in-line installation
ZIA MOVE: Promote collaboration with AMR/AGV vendors
Integrate robotics and safety
ZIA SAFE: Expand into markets other than dashcam market, and OEMs

Continue strong growth through increased market share and added value inamusement and IP products
Offer new AI inference processor IP A3000 License
Expand RS1 customer base and take advantage ofrecovery in pachislot market
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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 and trends inthe industries in which we are engaged. As such, actual results may differ materially from thoseanticipated.
⚫ The purpose of this document is to provide information for the purpose of understanding ourcompany and is not to solicit investment in securities issued by our company. Please refrain frommaking any investment decisions based entirely on this document.

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