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.

2nd Quarter ended September 30, 2021

Results Briefing
Digital Media Professionals Inc.
November 10, 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.

1

Explanation of Results, 2nd Quarter
ended September 30, 2021

2

Initiatives and Progresses, 2nd Quarter
ended September 30, 2021

3

Fiscal Year Ending March 31, 2022,
Full-Year Business Forecast

4

Advanced Initiatives for Robotics Field© Digital Media Professionals Inc.

2

1

Explanation of Results, 2nd Quarter
ended September 30, 2021

2

Initiatives and Progresses, 2nd Quarter
ended September 30, 2021

3

Fiscal Year Ending March 31, 2022,
Full-Year Business Forecast

4

Advanced Initiatives for Robotics Field© Digital Media Professionals Inc.

3

Basic Policy of Medium-term Business Plan

Increasing momentum for society, politics, andthe business world to overcome major socialand environmental issues such as "declining
birthrate and aging population," "COVID-19,"and "climate change"

Social and environmental issues

We regard changes in the social environment as opportunities and strive to realize CSV (Creating Shared
Value) management, which will enable us to earn profits and increase our corporate value by contributing to theresolution of social and environmental issues.

• Focusing on the safe driving assistance and robotics fields, which are expected to grow in the market size and contribute tosolving social and environmental issues, and which can be differentiated by utilizing graphics technology, which has been oneof our strengths since our founding, and AI (artificial intelligence) and deep learning technologies derived and cultivated fromthis technology• In the amusement field, where the absolute size of the market is large, we will aim to expand our share in the market segment
where we can demonstrate the superiority of our unique 2D/3D integrated chips.

© Digital Media Professionals Inc.

4

2nd Quarter ended September 30, 2021

Results Highlights: P/L
Net sales grew and losses improved due to higher sales in the product andprofessional service businesses(Unit: million yen)

Net sales
OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

2nd Quarter ended
Sept. 30, 2020

2nd Quarter ended
Sept. 30, 2021

Amount change

533

690

+157

-191

-109

+82

-155

-109

+46

-156

-110

+46

⚫ Net sales increased by 29.5% and operating loss improved by 82 million yen due to higher sales in the
product and professional service businesses, although sales in the IP license business slightly
increased year on year.
⚫ Despite the absence of 37 million yen in subsidy income related to the NEDO project, which wasrecorded as non-operating income in the same period of the previous fiscal year, ordinary loss and net
loss attributable to owners of parent improved by 46 million yen year on year.
© Digital Media Professionals Inc.

5

2nd Quarter ended September 30, 2021

Results Highlights: Net Sales by Business and Field• IP licensing and professional services for new customers/projects were active in the safe driving
assistance field.
• The number of business projects centered on PoC increased in the robotics field.
●Sales by business●Sales by field
Same period¥61 million
last year

Same period
Safe driving assistance¥10 million¥45 million
last year
field●Recorded GPU running royalties for digital equipment, new IP license/support
revenues for safe driving assistance and robotics fields, and recurring
revenue in safe driving assistance field●IP licensing including recurring business and professional services got active.

IP core license business ¥67 million

Robotics field
Product business¥502 million

Same period¥383 million
last year●Recorded sales of RS1 for mass production and camera modules for drones

Professional service
business¥120 million

Same period¥87 million
last year●Although contracted income from the NEDO project was lost, contracted AI
development services for safe driving assistance and robotics fields got active.

¥106 million

Same period¥61 million
last year●In addition to new IP license revenue, AI contract development projects got
active.

Amusement field¥499 million

Same period¥382 million
last year●Recorded sales of RS1 for mass production

Other¥38 million

Same period¥77 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.

6

2nd Quarter ended September 30, 2021

Results Highlights: B/S

Equity ratio remains high at 91.5%(Unit: million yen)

End of March End of Sept.
2021
2021

AmountchangeMajor factors

Current assets

2,736

2,690

-46

Cash and deposits -162, Other -54,
Accounts receivable - trade andcontract assets +191

Non-current assets

740

741

+1

Investment securities +41
Software -27

3,477

3,432

-44

Current liabilities

208

271

+63

Non-current liabilities

18

18

+0

Total liabilities

227

290

+63

Total net assets

3,250

3,141

-108

Total liabilities andnet assets

3,477

3,432

-44

Total assets© Digital Media Professionals Inc.

Accounts payable - trade +79

Retained earnings -110

7

1

Explanation of Results, 2nd Quarter
ended September 30, 2021

2

Initiatives and Progresses, 2nd Quarter
ended September 30, 2021

3

Fiscal Year Ending March 31, 2022,
Full-Year Business Forecast

4

Advanced Initiatives for Robotics Field© Digital Media Professionals Inc.

8

2nd Quarter ended September 30, 2021: Initiatives and Progresses

Robotics Field
Progress in expanding solutions for robotic vehicles and robotic picking, partnering, andproducing results⚫ Expansion of the ZIA™ portfolio
・ZIA™ MOVE: Software for robotic vehicles that encompasses ZIA™ SLAM and provides a complete set of perception,
judgement, and operation functions required for automated and autonomous driving
・ZIA™ Wire: AI recognition model for detecting power lines, fences and other wires for drones and unmanned robots
・ZIA™ ISP: Image signal processor (ISP) core that newly supports the high dynamic range (HDR) capabilities of image sensors⚫ Business projects in the PoC and practical use stages, such as Yamaha Motor, are getting more active
・Collaborating with Yamaha Motor on AI implementation in various products, including field tests has been underway
・Progress in collaboration with Prophesee of France, combining its event-based sensors with DMP’s software and hardware
technologies for edge AI
・The number of business projects with other customers, mainly PoC, is increasing.

⚫ Business development of Cambrian vision system
By building and deepening relationships with collaborative robot manufacturers and robot SIers to meetthe demands of end customers for labor-saving and productivity improvement, we are making progressin business, including collaboration on specific customer projects.

⚫ Development of compact high-sensitivity monocular camera module
Equipped with Sony's IMX390 automotive CMOS image sensor, capable of high sensitivity and high dynamic range (HDR)
The combination of this camera module and ZIA™ ISP enables 120dB high dynamic range.
© Digital Media Professionals Inc.

9

2nd Quarter ended September 30, 2021: Initiatives and Progresses

Safe Driving Assistance Field
Won new projects on the strength of DMP’s integrated edge-to-cloud solution⚫ Released ZIA™ Showcase, a platform for demonstrating and benchmarking DMP’s latest edge AI
recognition models
By accessing AI recognition models related to ADAS*1 and DMS*2 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• Acquired new projects for new and existing customers, leveraging the strength of our integrated edge (ZIA™ SAFE) to cloud(ZIA™ Cloud SAFE) support and flexible billing model.
• Earned recurring revenue from existing projects and provided professional services to new customers and new projects forexisting customers.

⚫ Continued adoption of ZIA™ C3 module for perimeter monitoring of commercial vehicles
Adopted for mass production project following the previous fiscal year

*1: Abbreviation for Advanced Driver Assistance System*2: Abbreviation for Driver Monitoring System© Digital Media Professionals Inc.

10

2nd Quarter ended September 30, 2021: Other Topic

Collaboration with Macnica
In order to solve social issues, DMP and Macnica will provide a vertically integrated development platform
environment for automated/autonomous driving and advanced driver assistance systems by combining Macnica's
high-performance AI semiconductors and various sensing devices with DMP's ZIATM MOVE software for
automated/autonomous driving and ZIATM SAFE software for safe driving assistance and provide optimal solutions
for customers' development projects© Digital Media Professionals Inc.

11

1

Explanation of Results, 2nd Quarter
ended September 30, 2021

2

Initiatives and Progresses, 2nd Quarter
ended September 30, 2021

3

Fiscal Year Ending March 31, 2022,
Full-Year Business Forecast

4

Advanced Initiatives for Robotics Field© Digital Media Professionals Inc.

12

KPI (Key Performance Indicator)◼ We consider the sales of IP core license business in the focused fields of safe driving assistance and robotics as a KPI.
◼ In order to provide added value to our customers throughout the entire product development lifecycle (from planning to mass
production), i.e., to maximize customer lifetime value (LTV), increasing IP core license business with a relatively high profit
margin which includes providing evaluation licenses, regular licenses, their maintenance, and recurring business model(subscription, running royalty) after shipment of customer products, will lead to medium-term growth in revenues and profits inthese fields and of the entire company.

◼ IP core license business results, 2Q ended Sept. 2021: net sales/ratio ¥28M/19% (¥7M/11% in the same period last year)
Focused Field Sales

IP Core License Business

Sales Ratio

1,557 36%

(Million Yen)
31%

30%

1,080
23%
19%
16%

Mar-21

717
563

557

215

35

876

106
Mar-22

166
Mar-23

263

Mar-24© Digital Media Professionals Inc.

334

Mar-25Mar-26

13

Fiscal Year Ending March 31, 2022

Business Forecast
Upwardly revised the business forecast announced on May 14, 2021, considering
recent business trends and the business environment
FY 03/2021
Actual(Unit: million yen)

FY 03/2022 Forecast
May 14, 2021
Nov 10, 2021

Net sales

1,009

1,500

1,650

Operating income

-425

-250

-200

Ordinary income

-361

-250

-200

Net income attributableto owners of parent

-364

-252

-202

⚫ Business outlook for the third quarter and beyond• Amusement field: Continue mass production shipments in response to large-scale orders• Safety Driving Assistance Field
Steady increase in IP licenses and professional services for new projects from existing and new major customers
Decrease in production of customer devices due to semiconductor supply shortage will have a certain impact on our running royalties• Robotics
Steady growth in revenues from product businesses such as Cambrian vision systems and camera modules for mass production of drones
IP licenses and professional services are expected to increase in response to increased demands in the PoC phase, but the number ofprofessional services projects and the amount of revenue per project are expected to be lower than the initial forecast→Accelerate exploring new projects, including through collaborations, and promote PoC acquisition, IP licensing and involvement in fullscale development© Digital Media Professionals Inc.

14

1

Explanation of Results, 2nd Quarter
ended September 30, 2021

2

Initiatives and Progresses, 2nd Quarter
ended September 30, 2021

3

Fiscal Year Ending March 31, 2022,
Full-Year Business Forecast

4

Advanced Initiatives for Robotics Field© Digital Media Professionals Inc.

15

DMP Business Model Built on Strengths⚫ Full-stack development to enable domain optimization• Algorithm• Software• Hardware

Robotics&Safety⚫ Wide range of products and services• Professional service• IP core license/Subscription• Products (System, LSI)

(202x-)(200x-)(200x-)

Domain optimization+ Subscription model

STEP 2

AI(201x-)(201x-)STEP 1

Mobility

Visual computing
Consistentdevelopment of Algorithm, SW, HW
アルゴリズム、ソフト、ハードの一貫開発＋Professional service

GPU
GPU

Game consoles, Consumer products

顧客製品出荷一億台以上の実績
Shipment over 100 million units of customer products
IP license/product© Digital Media Professionals Inc.

16

Creating New Value Based on Proprietary Technologies
Advanced 3D recognition technology that combines DMP's 3D, AI, and SLAM technologies“DMP 3D Perception”
SLAM

Sensor fusion
Self-positioning
Map creation

GPU technology
Computer vision
Simulation

AR/VR

SLAM

3D

(Perception)(Visualization) Optimization

Robotics
Perception

Digital Twin

• Automotive &Transportation• Healthcare• Construction & Real Estate• Manufacturing & Logistics• Retail & E-commerce• Education• Metaverse

AI

Detection(Understanding) Recognition
Meaning-making
SLAM: Acronym of Simultaneous Location and Mapping
Construct 3D scene, estimate self-position and visualize© Digital Media Professionals Inc.

17

Industry Trends Related to DMP⚫ Edge's share to total computing to grow rapidly• From 20% in 2020 to 80% in 2030*⚫ Explosive growth of image data
• 90% of all data generated in the past two years, 80% of which was image data*⚫ Accelerated development of new sensors, moving from imaging to sensing• Low-cost 3D sensors, next-generation neuromorphic sensors, etc.
• Emergence of new industrial robots that understand scenes⚫ Dramatic expansion of robot applications as programmable automation tools• Improved performance of microprocessors and AI• Dramatic improvement in accuracy and efficiency through integration with machine vision* Source: AI Hardware Summit 2021
© Digital Media Professionals Inc.

18

DMP’s Approach to Robotics⚫ Sustainable robotics ecosystem with the ZIA™ portfolio at its core
⚫ Alignment with relevant next generation technologies through partners
Neuromorphic
Sensor(Prophesee)

FusionPlatform
VisionProcessor

Development
Systems(Nvidia)(DV Core)

CameraModule(Mono/Stereo)

Benchmark
Suite(ZIA Showcase)

Picking
System(Cambrian)Partner

DigitalTwin

Algorithm

Robot Arms
(UR)

Image Signal
Processor(ZIA ISP)(ZIA SLAM/ZIA MOVE)© Digital Media Professionals Inc.

UGV, AGV,
Drone, AMR, etc.
19Collaboration for Next Generation Robotics I
Vision Picking System
High versatility through AI-based recognition and motion control• Immediate use by attaching to the arm of- Picking flow collaborative robots such as UR• Support for very small size items (1 mm x 1 mm orless)• Compatible with a wide variety of items such as
plastic, rubber, and metal materials, as well as
glossy, black, transparent, and reflective surfaces STEP1: Preparation of
CAD data of items to be• Recognition time of less than 200ms
picked• Picking success rate of 95%+
• DMP AI functions can be added (e.g., OCR, object
recognition)
STEP2: Learning throughUse case

Bin picking

neural networks and simulation

Cable insertion

STEP3: Picking & placing

Kitting© Digital Media Professionals Inc.

20

Collaboration for Next Generation Robotics Ⅱ
Neuromorphic sensor (event-based sensor)(Imitating the functions of the human retina/brain)

Prophesee
SensorConventional CMOS
sensorEvent-based sensor

Continuously output
the entire image

Output images only for parts ofthe scenes that are changing✖

〇

Object recognitionin the dark

DMP
DV7x0
AI Proc.

Co-developing a module combining Prophesee
sensor and DMP DV7x0 AI processor

Data saving, low power consumption, high speed andhigh sensitivity sensing, and high dynamic range© Digital Media Professionals Inc.

21

<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 in the industries in which we are engaged. As such, actual results
may differ materially from those anticipated.
⚫ The purpose of this document is to provide information for the purpose of understanding
our company and is not to solicit investment in securities issued by our company. Pleaserefrain from making any investment decisions based entirely on this document.

© Digital Media Professionals Inc.

22