(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 Non-consolidated Financial Results for the Fiscal Year ended March 31, 2020 (Japanese GAAP)May 12, 2020
Company name: Digital Media Professionals Inc.
Listing: Tokyo Stock Exchange
Code number: 3652
URL: https://www.dmprof.com/en
Representative: Tatsuo Yamamoto, President and CEO
Contact person: Tsuyoshi Osawa, General Manager, Corporate Planning Department
Tel. (03) 6454 - 0450
Scheduled date of General Meeting of Shareholders: June 19, 2020
Scheduled date of payment of cash dividends: Scheduled date of filing Securities Report: June 19, 2020
Supplementary materials for the financial results: No
Briefing session on the financial results: Yes
1. Non-consolidated financial results for the fiscal year ended March 31, 2019 (April 1, 2019 through March 31, 2020)(1) Non-consolidated operating results
Net sales% Millions of yen
22.2
82
11.6
28

Millions of yen
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

(Percentages indicate year-on-year changes)
Ordinary income
Net income% Millions of yen% Millions of yen
%
185.6
85
155.4
65
86.0
△58.5
33
△49.9
35
△67.8

Operating income

1,328
1,086

Net income per shareReturn on
Return on
Operatingequityassetsmargindiluted
yen
yen
%
%
%
Fiscal year ended March 31, 2020
21.21
2.4
2.7
6.2
－
Fiscal year ended March 31, 2019
12.54
12.53
1.8
1.5
2.7
Reference) Equity in earnings of affiliates: - million yen as of March 31, 2020; - million yen as of March 31, 2019
Net income per share(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio%
As of March 31, 2020
3,841
3,543
92.2
As of March 31, 2019
2,383
1,998
83.8
Reference) Shareholders' equity: 3,543 million yen as of March 31, 2020; 1,998 million yen as of March 31, 2019
Millions of yen

Millions of yen

Net assets per shareYen
1131.88710.70(3) Cash flows
Cash flows fromoperating activities
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

84
△97

△958
△2

1,428
31

1,995
1,442

2. Cash dividends

Year ended March 2019Year ended March 2020
Year ending March 2021 (Forecast)

1Q-endyen-

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

Total
Devidends
Payout ratio
Devidends
on equity
yen Millions of yen
%
%
0.00
0.00
0.00
-

Total

3. Forecasts of non-consolidated operating results for the year ending March 31, 2020 (April 1, 2019 through March 31, 2020)
Forecasts of non-consolidated operating results for the year ending March 31, 2020 are undecided because it is difficult toreasonably calculate the impact of 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. Overview of Business Results (3) Future Outlook".

Notes:1. Changes in accounting policies/estimation and restatement(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
2. Number of shares issued(1) Number of shares issued at the end of the period (including treasury shares)
As of March 31, 2020

3,131,700 shares

As of March 31, 2019

2,811,700 shares

As of March 31, 2019369 shares(2) Number of treasury shares at the end of the period
As of March 31, 2020

1,069 shares(3) Average number of shares issued during the period
Year ended March 31, 2020

3,081,761 sharesYear ended March 31, 20192,802,934 sharesThis summary of the non-consolidated financial results is not subject to the audit by the auditing firm.
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 useof business forecast, please refer to "1. Overview of Business Results (3) Future Outlook".

1. Overview of Business Results(1) Overview of Business Results for the Current Fiscal Year
The Japanese economy up until the third quarter in the current fiscal year was on a moderate recovery track backed
by the improvements of employment and income environment despite negative impacts of the consumption tax hikeand frequent natural disasters. However, there were growing concerns about the economic decline and the downturnin corporate performance due to the impact of the spread of the new coronavirus infection on economic activities in the
fourth quarter. In addition, the world economy has deteriorated rapidly due to the global pandemic of new coronavirus
infection in addition to the prolonged US-China trade friction, the Brexit, and the geopolitical risk of the Middle East andEast Asia.
In the semiconductor industry to which the Company belongs, the prolonged friction between the US and China overadvanced technologies has given negative impacts in specific fields. However, businesses related to Internet of things(IoT), AI (artificial intelligence), big data, next generation high-speed communication standard, and autonomous driving
are steadily expanding, and are booming due to strong demand in these fields.
In the AI / visual computing field, which is the business area of the Company, there has been a competitive environment
where entries from different industries and the movement of existing players to strengthen the business are remarkable
due to the expansion of the AI-related market. Accordingly, in addition to technological advantages, it is required todevelop products and services that accurately capture market needs and to bring them to market quickly.
Under such circumstances, the Company aims to evolve into the world's leading "AI Computing Company" that solves
social problems such as a declining birthrate, an aging population, and an accompanying increase in medical expenses,
and realizes a safe and secure society by providing AI solutions that leverage the Company’s strength of having aconsistent development system of AI algorithm, software and hardware.
As concrete efforts and results of the current fiscal year, firstly, the Company concluded a business capital allianceagreement with Yamaha Motor Co., Ltd. on May 10, 2019 and has accelerated collaborations in the final
commercialization process from developing algorithms by applying AI technology through to mounting on products andin the process of developing automatic / autonomous driving systems in the low-speed field, which has led to theimprovement of the Company’s technological capabilities. In the AI products field, in addition to upgrading edge AI
processor IP cores and improving their performances, the Company realized an expansion of its product lineup andadoptions by customers. It is exemplified by a provision of the license to and adoptions by customers of software “ZIA™
Plate” that recognizes vehicle license plates, an adoption of the image recognition engine "ZIA™ Classifier" for drive
recorders manufactured by DENSO TEN Limited, and a provision of “ZIA™ SAFE”, an AI platform that evolves from"ZIA™ Classifier" and is systematized as a collection of necessary functions and modules to realize safe driving support
systems. In addition, the image processor "RS1" has successfully realized supporting multi-platforms through adoptions
not only by ZEEG Co. Ltd., a joint venture company of Sammy Corporation and Universal Entertainment Corporation,for its game machine units/parts but also by Bandai Namco Amusement Inc. for its arcade machines, and shipments
for mass production are making good progress. Moreover, the Company applied and was successfully adopted for thecommissioned project “Survey of issues for finding ideas regarding Technology Development for AI Chip and Nextgeneration Computing for High-efficiency and High-speed Processing” led by the New Energy and Industrial Technology
Development Organization (NEDO), and has started the operation of “AI Edge Contest”, in addition to carrying out
NEDO’s subsidized projects on 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.”
In the current fiscal year, mass production shipments of the image processor "RS1" have been steady in the LSI product-1-

business. In the IP core license business, although running royalties mainly from game consoles decreased, revenuesof new GPU / AI related licenses grew. In the professional service business, there was an increase in sales of contractdevelopment services for Yamaha Motor Co., Ltd., drive recorder-related customers, license plate-related customers,
and industrial machinery customers, in addition to NEDO's edge AI contest operating entrusted revenue, despite thefall-off of NEDO commissioned revenue (172 million yen in the same period of the previous year) related to "An Energy
Efficient AI Engine and an Integrated Cloud of Heterogeneous AI engines".
As a result, net sales for the current fiscal year grew to 1,328 million yen (up 22.2% year on year). In terms of profits,
operating income grew to 82 million yen (up 185.6% year on year) as the increase in sales and the growth in the highly
profitable IP licensing business absorbed the increase in personnel expenses for strengthening the development
system. As a result of recording subsidy income of 57 million yen as non-operating income regarding the NEDO projects
and recording share issuance cost of 56 million yen as non-operating expenses regarding the business and capitalalliance with and the implementation of the third-party allotment to Yamaha Motor Co., Ltd., ordinary income grew to
85 million yen (up 155.4% year on year). Net income grew to 65 million yen (up 86.0% year on year).

Although the Company has a single business segment, each business result is shown below in order to show businesstrends.
1) IP core license businessNet sales were 380 million yen attributable to new GPU and AI IP license fee, running royalty income from existingcustomers and revenue from maintenance support.
2) LSI product businessNet sales were 553 million yen attributable to the sales of RS1 for mass production and AI FPGA module "ZIATM C3".
3) Professional service businessNet sales were 394 million yen attributable to the revenues of AI-related commissioned development and NEDO’s
entrusted development.

(2) Overview of Financial Position for the Current Fiscal Year
(Assets)
Total assets at the end of the current fiscal year amounted to 3,841 million yen, up 1,458 million yen from the end of
the previous fiscal year mainly attributable to increases in cash and deposits (up 853 million yen), securities (up 99
million yen), and investment securities (up 499 million yen) and a decrease in intangible assets (down 52 million yen)
due to a depreciation of the software for sale.
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the current fiscal year amounted to 298 million yen, down 87
million yen from the end of the previous fiscal year mainly attributable to a decrease in accounts payable (down 154
million yen) associated with purchase of image processors.
(Net assets)
Net assets at the end of the current fiscal year amounted to 3,543 million yen, up 1,545 million yen from the end of theprevious fiscal year mainly attributable to increases in capital stock (up 742 million yen) and capital surplus (up 742
million yen) as a result of receiving payment for the third-party allotment of new shares from Yamaha Motor Co., Ltd.
on May 27, 2019 as well as an increase in retained earnings due to the recording of net income (up 65 million yen).
As a result, the equity ratio was 92.2%.

-2-

(3) Overview of Cash Flows for the Current Fiscal YearThe balance of cash and cash equivalents at the end of the current fiscal year increased by 552 million yen from theend of the previous fiscal year to 1,995 million yen.
Net cash provided by operating activities was 84 million yen (97 million yen used in the same period of the previousyear), mainly attributable to positive factors such as income before income taxes of 84 million yen, depreciation of 92
million yen, and new stock issuance cost of 56 million yen, and negative factors such as a decrease in notes andaccounts payable - trade of 154 million yen and an increase in notes and accounts receivable - trade of 45 million yen.
Net cash used in investing activities was 958 million yen (2 million yen used in the same period of the previous year),mainly attributable to proceeds from redemption of securities of 300 million yen and purchase of securities andinvestment securities of 1,203 million yen.
Net cash provided by financing activities was 1,428 million yen (31 million yen provided in the same period of theprevious year), attributable to proceeds from issuance of common shares of 1,428 million yen.

(Reference) Changes in cash flow indicators
March 2016

March 2017

March 2018

March 2019

March 2020

Equity ratio (%)

88.9

93.6

88.2

83.8

92.2

Equity ratio on market value (%)

238.0

392.9

834.8

548.5

162.3

Interest-bearing debt to cash

-

-

-

-

-

-

-

-

-

-

flows ratio (year)
Interest coverage ratio (times)
Equity ratio: Equity / Total assets
Equity ratio on market value: Market value / Total assets
Interest-bearing debt to cash flows ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payment(Note 1) Market value is calculated based on the number of issued shares excluding treasury stock.
(Note 2) Cash flows from operating activities are used for cash flows.
(Note 3) Since there is no interest-bearing debt balance or interest payment in each period, interest-bearing debt tocash flows ratio and interest coverage ratio are not stated.

(4) Future Outlook
The future of Japan and the world economy is expected to remain severe due to the global pandemic of new coronavirus
infections.
In the semiconductor industry to which the Company belongs, negative impacts of the economic downturn are inevitablein the short term, but in the medium term, demands for semiconductors for AI / IoT fields are expected to grow. In
addition, an evolution of technology such as AI is expected to overcome the current difficulties.
Under such circumstances, the Company will continue to focus on increasing the sales volume of its main product"RS1" in line with the generational change of gaming machines, to accelerate the establishment of a profit base in the
AI field, by further enhancing AI solutions that leverage the Company’s strength of having a consistent development
system of AI algorithm, software and hardware, and to contribute to the solutions of social problems and the realizationsof a safe and secure society. In addition, in order to maintain and improve technological competitiveness in the AI fieldand strengthen the development system, the Company will continue to allocate management resources to recruit andtrain excellent engineers.
-3-

As for business environments surrounding the Company, although the shipment of "RS1" is expected to accelerate
toward the complete removal of the old standard gaming machines by January 2021, the impact of the decrease in theoccupancy rate of the halls due to the declaration of a state of emergency should be scrutinized. In the AI business,
although domain-specific customers projects are expected to accelerate, trends of customers’ investments indevelopment should be assessed. As just described, the business forecast for the fiscal year ending March 2021 isundecided because it is difficult to reasonably calculate the impact of the new coronavirus infection at this stage. It will
be disclosed as soon as reasonably predictable.

-4-2. Non-consolidated financial statements(1) Non-consolidated balance sheets(Yen thousand)Previous year

Current year

(As of Mar 31, 2019)(As of Mar 31, 2020)

AssetsCurrent assets
Cash and deposits

1,096,810

1,950,078

Accounts receivable - trade566,997

612,944

Securities

345,372

444,947

5,232

4,351

-

1,080

Raw materials and supplies

2,239

11,857

Prepaid expenses

42,98043,320

Other

3,406

9,299

2,063,041

3,077,880

52,926

51,243△34,798△36,346

Finished goods
Work in progress

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net

18,127

14,896

Tools, furniture and fixtures

113,557

112,351

Accumulated depreciation△103,935△99,382

Tools, furniture and fixtures, net

9,622

12,969Total property, plant and equipment

27,75027,865204,937

152,812Intangible assets
Software
Other
Total intangible assets

25

25

204,963

152,837

Investments and other assets
Investment securities-

499,200

Shares of subsidiaries and associates

3,916

15,596Long-term prepaid expenses

31,698

14,533

Leasehold deposits

51,99053,598

Total investments and other assets

87,604582,928

320,318

763,632

2,383,359

3,841,512

Total non-current assets
Total assets-5-

(Yen thousand)Previous year

Current year

(As of Mar 31, 2019)(As of Mar 31, 2020)

Liabilities
Current liabilities
Accounts payable - trade293,237

138,536

Accounts payable - other

20,37659,041

Accrued expenses

7,554

8,941

Income taxes payable

2,252

32,153

Accrued consumption taxes

27,72829,862

Deposits received

9,417

7,103

Unearned revenue

6,193

3,783

Total current liabilities

366,761

279,423

Deferred tax liabilities

1,932

1,675

Asset retirement obligations

16,656

16,905

Non-current liabilities

Total non-current liabilities

18,58818,580385,350

298,004

1,062,032

1,804,592

Legal capital surplus

1,081,243

1,823,803

Total capital surpluses

1,081,243

1,823,803△141,191△75,840△141,191△75,840△1,482△1,4822,000,603

3,551,074

Valuation difference on available-for-sale securities△2,594△7,566

Total valuation and translation adjustments△2,594△7,566

1,998,008

3,543,507

2,383,359

3,841,512

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets-6-

(2) Non-consolidated statements of income(Yen thousand)Previous year

Current year

(From Apr 1, 2018

(From Apr 1, 2019

To Mar 31, 2019)

To Mar 31, 2020)

Net sales

1,086,713

1,328,494

-

5,232

376,374

310,921265,652

345,673

642,026

661,827

495

220

5,232

4,351

636,298

657,256

Gross profit

450,415

671,238

Selling, general and administrative expenses

421,470

588,562

Operating profit

28,94582,676

Interest income

835

504

Interest on securities

707

2,158

Foreign exchange gains

4,403

-

Subsidy income-

57,041

Miscellaneous income

-

65

5,946

59,7691,592

56,162Foreign exchange losses

-

1,249

Miscellaneous loss

3

-

1,596

57,41133,29585,034Gain on reversal of share acquisition rights

2,964

-

Total extraordinary income

2,964

-

Loss on retirement of non-current assets-

180

Total extraordinary losses-

180

Profit before income taxes

36,25984,854

Income taxes - current

1,420

19,760

Income taxes - deferred

△296

△257

Total income taxes

1,123

19,502

Profit35,13665,351

Cost of sales
Beginning merchandise and finished goods
Cost of products manufactured
Cost of purchased merchandise andfinished goods
Total
Transfer to other accountEnding merchandise and finished goods
Total cost of sales

Non-operating income

Total non-operating income
Non-operating expenses
Share issuance cost

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses-7-Manufacturing statement
Previous year

Current year

(From Apr 1, 2018

(From Apr 1, 2019

To Mar 31, 2019)
Classification

Composition (%)

Amount (Yen tousand)Composition (%)

171,675

45.6

144,11346.2

204,69854.4

167,88853.8

376,374100.0

312,001

100.01) Labor cost2) Overhead costs*1

Total manufacturing costs
Beginning work in progress
Total
Ending work in progress
Cost of products manufactured--

376,374

312,001-

1,080

376,374

310,921

Cost accounting is based on a job cost system.

*1 Major breakdown is as follows.

(Yen thousand)Previous year
Account

To Mar 31, 2020)

Note Amount (Yen tousand)Current year

(From Apr 1, 2018 (From Apr 1, 2019
To Mar 31, 2019)

To Mar 31, 2020)

Office rent

24,492

17,925

Subcontract processing cost

69,44145,369Software usage fee

15,417

11,721

Depreciation

56,712

70,957-8-

(3) Statements of shareholders’ equity
Previous fiscal year (from April 1, 2018 to March 31, 2019)(Yen thousand)Shareholders' equity
Capital surplus
Capital stock

Balance at beginning of current period

Legal capitalsurplusRetained earnings
Other retained
Total capital
Total retained
earnings
surplusearnings
Retained earnings
brought forward
1,035,611△176,327△176,327

1,016,400

1,035,611

28,53228,53228,532

17,10017,10017,100Total
shareholders'equityTreasuryshares△291

1,875,392

Changes of items during period
Restricted stock payment
Issuance of new shares - exercise ofshare acquisition rights
ProfitPurchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

34,20035,13635,13635,136△1,190△1,19045,632

45,632

45,63235,13635,136△1,190125,210

1,062,032

1,081,243

1,081,243△141,191△141,191△1,4822,000,603

Valuation and translation adjustments

Balance at beginning of current period

57,065

Valuation difference Total valuation andon available-for-saletranslation
securities
adjustments△4,508△4,508

ShareacquisitionrightsTotal net assets

2,964

1,873,847

Changes of items during period
Restricted stock payment
Issuance of new shares - exercise ofshare acquisition rights
Profit57,06534,20035,136

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period

1,914

1,914

△2,964△1,04945,632

1,914△2,964

124,161

Balance at end of current period△2,594△2,594-

1,998,008△1,190Current fiscal year (from April 1, 2019 to March 31, 2020)(Yen thousand)Shareholders' equity
Capital surplus
Capital stock

Balance at beginning of current period

Legal capitalsurplus1,062,032

1,081,243

742,560

742,560

Retained earnings
Other retained
Total capital
Total retained
earnings
surplusearnings
Retained earnings
brought forward
1,081,243△141,191△141,191

Total
shareholders'equityTreasuryshares△1,4822,000,603-

1,485,120

Changes of items during period
Issuance of new shares
ProfitNet changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Balance at beginning of current period

742,560

65,351

65,351

742,560

742,560

742,560

65,351

65,351-

1,530,471

1,804,592

1,823,803

1,823,803△75,840△75,840△1,482

3,551,074

Valuation and translation adjustments
Valuation difference Total valuation and Total net assets
on available-for-saletranslation
securities
adjustments△2,594△2,594
1,998,008

Changes of items during period
Issuance of new shares

65,351--

1,485,120

ProfitNet changes of items other thanshareholders' equity
Total changes of items during period△4,972△4,972△4,972△4,972△4,972

1,545,498

Balance at end of current period△7,566△7,566

3,543,507

65,351-9-

(4) Statement of cash flows(Yen thousand)Previous year

Current year

(From Apr 1, 2018

(From Apr 1, 2019

To Mar 31, 2019)

To Mar 31, 2020)

Cash flows from operating activities
Income before income taxes

36,25984,854

Depreciation

61,42492,551

Share-based compensation expenses

6,348

21,212

Interest income△835△2,662

Subsidy income-△57,041△2,964--180△333,503△45,947△6,340△9,816

162,029△154,700

1,592-

Gain on reversal of share acquisition rights
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Share issuance cost
New share issuance cost
Increase (decrease) in unearned revenue
Decrease (increase) in prepaid expenses-

56,162△1,543△2,40910,966△4,387△30,646

39,301

Increase (decrease) in accrued consumption taxes

19,884

2,133

Other, net△7,692

7,803△85,019

27,231835

2,584

Increase (decrease) in accounts payable - other

SubtotalInterest income received
Income taxes paid

△13,516-

Income taxes refund

-

2,772

Proceeds from subsidy income-

51,798△97,700

84,386

Purchase of securities-△600,000

Proceeds from redemption of securities-

300,000

Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of investment securities-△603,696

Purchase of property, plant and equipment△553△40,856

Purchase of intangible assets△750

Purchase of shares of subsidiaries and associates△500△11,679

Payments for leasehold deposits△1,330△1,959-351△2,633△958,341-

1,428,957

Purchase of treasury shares
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Payments for issuance of common shares△1,190-34,200-△1,592-

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

31,416

1,428,957

6,426△2,091△62,490552,912

Cash and cash equivalents at beginning of period

1,504,674

1,442,183

Cash and cash equivalents at end of period

1,442,183

1,995,095

Collection of lease deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of common shares- 10 -