(This is a translation in English from the original in Japanese. In case of any discrepancy between thetranslation and the Japanese original, the latter shall prevail.)
April 9, 2021
To whom it may concern:
Company name

Digital Media Professionals Inc.

Representative

Tsuyoshi Osawa, President & COO(Security Code: 3652, TSE Mothers)

Contact

Tomoyuki Ietaka, Executive Officer, CFO,
General Manager, Finance/Corporate
Planning Department

TEL.

03-6454-0450

Notice of Medium-term Business Direction
1. Basic policy
There is growing momentum in society, politics, and the business world to overcome major global social andenvironmental issues such as the declining birthrate and the aging population, the COVID-19, and the climatechange. Our basic policy for the medium-term direction of our business is to regard these changes in thesocial environment as opportunities to realize CSV (Creating Shared Value) management, which will enable
us to earn profits and increase our corporate value by contributing to the resolution of such issues.
We aim to achieve a V-shaped recovery over the medium term from the fiscal year ended March 2021, in
which our business results deteriorated due to the stagnation of the amusement market and the impact ofcustomers' restrained investment in development caused by the COVID-19.

2. Basic strategy(1) Providing added value across the entire development cycle of customer products and services
We aim to maximize the LTV (Lifetime Value) of our customers by providing added value across the entire
development cycle of customer products and services from planning to mass production through thedevelopment of IP core license business, LSI product business, and professional service business with an
integrated development system from algorithms and software to hardware, which is our strength.
In addition, we aim to respond flexibly and quickly to customer developments and improve our profit margin
by developing and providing standard products and services based on technology and know-how cultivatedthrough customer projects.

(2) Focused markets
We believe that we can differentiate ourselves from our competitors in the fields of safe driving assistanceand robotics, which are expected to grow in market size and contribute to solving social and environmental
issues by utilizing graphics technology, which has been one of our strengths since our founding, and AI(artificial intelligence) and deep learning technologies derived and cultivated from it. We will implement basic
strategies that match the life cycle of those markets.

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a. Safe driving assistance field
In this field, the enforcement of the revised Road Traffic Law and the expansion of automobile insurance witha dashcam special contract have led to an increase in demand for real-time accident prevention using
dashcams and safe driving education using near-miss events, and we recognize that the market is in a growthphase.
In addition to providing initial licenses and professional services, we have also started to develop the recurringbusiness by recording running royalty income and subscription income from the fiscal year ended March 31,
2021. With the competitive advantage of being able to provide integrated services from the cloud to the edge,
we aim to become a market leader by further cultivating existing customers’ projects and developing newcustomers.

b. Robotics field
In this field, the market for robotic vehicles and collaborative robots is expected to expand in response to thedecrease in the working population and the trend toward labor saving and productivity improvement in various
fields such as manufacturing, logistics, and agriculture. However, many customers are at the PoC (Proof ofConcept) stage and the market is still in the introduction phase. Therefore, while applying the business knowhow and business model that has been successful in the field of safe driving assistance, we aim to acquire
PoC projects from customers with high potential and maximize full-scale development opportunities byenhancing our technology portfolio for robotics including ZIA SLAM (Visual SLAM) and expand our share inthis vast market.
Regarding the business with Yamaha Motor, the lead customer in this field and business and capital partner,
we will continue to contribute to the development of AI for a variety of its products in line with the development
roadmap and will also work on external sales of the results of the collaboration upon discussion.

In the amusement field, which is our main business, sales of amusement machines have been decreasing
year by year due to the decline in the amusement playing population and the recent COVID-19 and themarket is in a mature and declining phase. However, annual unit sales exceed one million and we believethat the absolute market size is still large. While keeping a close eye on the volatility of the pachinko/pachislot
machine market, we aim to increase our share in market segments where we can demonstrate the superiorityof our unique 2D/3D integrated chip.

(3) Securing sustainable competitive advantage and growth
In the field of safe driving assistance, we are developing SaaS (Software as a Service) with ZIA Cloud SAFE,a SaaS-type safe driving assistance service using Amazon Web Services (AWS), PaaS (Platform as aService) with ZIA SAFE, a safe driving assistance system development platform, and IaaS (Infrastructure asa Service) with services that use customers' dashcams as the infrastructure. We will horizontally expand thesame initiatives to the robotics field and other growth fields and aim to achieve sustainable and organic growth
as a platformer that provides XaaS to a wide range of customers in the focused fields by exerting network
effects through close collaboration with various platformers, service providers and other ecosystems. In
addition, we will proactively consider non-organic growth through M&As and business alliances that
contribute to strengthening and complementing the competitiveness of services in our focused business fields.
Through the above initiatives, we aim to secure a sustainable competitive advantage and achieve sustainablegrowth.

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3. Schedule for disclosure of numerical targets
The medium-term numerical targets based on the above basic policy and strategy will be announced soon.

For details of the medium-term business direction, please refer to the attached presentation materials.

3Medium-term Business Direction
Digital Media Professionals Inc.
April 9, 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.

Company Profile
A fabless semiconductor vendor with 18 years of experience as one of the world's leading GPU IP vendors. In recent years, in order to become theworld's leading "AI Computing Company," we are contributing to solving customer and social issues by providing end-to-end AI services fromalgorithm/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.

2

Performance review• From GPU IP business mainly for game consoles at the time of listing, through LSI development for amusement, focusing on AI business inrecent years• Performance deteriorated in the fiscal year ended March 2021 due to the impact of COVID-19

Business performance*(¥M)

Net sales

1,044

Ordinary income
973
733

714
355

302

1,328
1,086

1,000

694
[Factors for a drop in sales]- Test pass rate of customer's new machines has been low

464
66

85

33

-36
-365
Mar-12Mar-13Mar-14-265
Mar-15-193

Mar-16-262
Mar-17-370
Mar-18Mar-19Mar-20Mar-21(Forecast)

GPU IP businesscentered on game
consolesRevised earnings forecast for the fiscal year ended March
2021
Nov.10
Apr. 9 revised
Net sales
1,500
1,000
Ordinary income -100
-370

Recorded up-front development
cost for next-generation
amusement LSI- Due to the impact of the COVID-19 including the state of
emergency issued to 11 prefectures in January, the sales
volume of pachinko and pachislot machine manufacturers
has been lower than planned, and the sales of some titles
that were scheduled to be released in the fourth quarter
have been postponed to the next fiscal year. Therefore,
demand for the "RS1" image processing semiconductor forthe amusement market, which was expected toward theend of the fiscal year, has been pushed back
- In the professional service, development investment bysome AI-related customers, which was expected torecover in the fourth quarter, was lower than expected

Contribution of next-generation amusement LSI
to business performance / Focus on AI business* Actual results on a non-consolidated basis through the fiscal year ended March 31, 2020, and full-year consolidated forecasts for the fiscal year ended March 31, 2021 disclosed on April 9, 2021

© Digital Media Professionals Inc.

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Basic policy for medium-term business direction

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.

Fiscal year ended March 2021
Performance deteriorated due to the stagnation of
the amusement market and the impact ofcustomers' restrained investment in development
caused by the COVID-19

Medium-term direction

Focus on robotics and safe driving assistance fields
and achieve a V-shaped recovery* Numerical targets will be announced soon

© Digital Media Professionals Inc.

4

Social & Environmental Changes/Issues and DMP Initiatives
Mega topic
Declining birthrate
and aging
population

COVID-19

Climate change

Social & environmental changes / issues• Declining working
population• Key workers’ overwork• Skill transfer issue• Increase in elderly car
accidents• Existence of vulnerable
road users• Infrastructure aging• Progress of remoteization and online• Digital shift• Expansion of EC (electronic commerce)• Decrease in foreign workers• Rise in average temperature due to greenhouseeffect• Increase in natural disasters• Decrease in agricultural production and food© Digital Media Professionals Inc.

DMP’s Initiatives• Contributing to productivity improvement, work
efficiency improvement, labor saving to complement
and mitigate the decrease in the working population,
hard work, and COVID-19 damage by making efforts
for automation and autonomy in the field of robotics• Contributing to real-time accident prevention and safe
driving education based on near-miss events byproviding safe driving assistance services• Contributing to MaaS promotion through autonomous
driving technology• Providing a VR (Virtual Reality) environment forcustomer development projects• Contributing to a global low-carbon society by reducing
the power consumption of hardware (IP)
• Contributing to infrastructure inspection by utilizing AI
image recognition technology

5Market trend

Robotic Vehicle
Demand for autonomous robotic vehicles is expected to grow at various sites
such as manufacturing, logistics, agriculture, and homes for labor saving andproductivity improvement.
Robotic Vehicle AI Related Computing Hardware Global Market
1,037(Billion Yen)

CAGR 37%

62
2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Source: Yole Développement© Digital Media Professionals Inc.

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Market trend

Collaborative robot• With the background of labor shortage and prevention of COVID-19 infection, introduction at
manufacturing and distribution sites is progressing, and application to food, pharmaceuticals, andcosmetics industries is also progressing.
• It is expected that the installation rate of AI vision systems that detect and recognize objects withcameras will also increase.

Worldwide shipments of collaborative robots(,000 unit)

45

CAGR 21%
21

2019

2020

2021

2022

2023

2024

Source: Global Information© Digital Media Professionals Inc.

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Market trend

Safe driving assistance (utilization of dashcam)
The expansion of the aftermarket as well as the rise of the OEM market can be expected due tothe enforcement of the revised Road Traffic Act, the expansion of automobile insurance with adashcam special contract, and the demand for safe driving education for corporate vehicles
Dashcam with AI / communication function domestic market
After market

OEM market(,000 unit)

11,144900

CAGR 31%
10,2442,910

After market:
Number of drive recorders x installation rate (2020: 5%, 2025: 20%) +corporate vehicles x installation rate (2020: 20%, 2025: 50%)
OEM market:
Annual vehicle sales x installation rate (2020: 0%, 2025: 20%)

2020

2025

Source: Automobile Inspection & Registration Information Association, Japan Automotive Leasing Association, Japan Trucking Association, Japan Automobile Dealers Association,
Ministry of Land, Infrastructure, Transport and Tourism, Japan Electronics and Information Technology Industries Association, and DMP’s estimate for installation rate

© Digital Media Professionals Inc.

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Market trend

Amusement• Although the market continues to decline, it still has a scale of over 1 million units• Demand for replacement of old rule machines with new rule machines in 2021
Amusement machine unit sales(,000 unit)
4,500
4,000

Pachinko

Pachislot

2014

2016

3,500
3,000
2,500
2,000
1,500
1,000

500
0
2010

2011

2012

2013

2015

2017

2018

2019

2020
2021
(Estimate) (Forecast)

Source: Yano Research Institute, Estimate and forecast are from Daiwa Securities Report"Amusement Machine Market Outlook," March 30, 2021
© Digital Media Professionals Inc.

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Main business market life cycle and basic strategy• Apply business know-how and business models in the field of safe driving assistance including the recurring business to
the growth of the robotics field• In the amusement field, reaping profit is carried out with the risk of increased market volatility due to COVID-19 in mind
Market size

Introduction
Robotics

Safe driving
assistanceAmusement

GrowthMaturity

Decline◎◎◎© Digital Media Professionals Inc.

Basic strategy
Maximize full-scale development
opportunities from the acquisition of
PoC projects
Expanding the number of customers
by enhancing solutions anddeepening customer projects
Maximize survivor profits bymaintaining and improving quality andexpanding market share10Business model• Integrated development of algorithms, software, and hardware (domain optimization)• Flexible value proposition and monetization model through licenses, products and professional services• Build a well-balanced profit structure of highly profitable "IP core license business", scale-seeking"professional service business", and "LSI product business"
Hardware Acceleration
Domain Specific Silicon

IP CoreSoC/FPGA

Algorithm

State-of-the-art
Techniques
DomainExpertise

ModuleSoftware &Platform

DomainOptimization
Professional
Service

Open and Agnostic
Software

IP License

Out-of-the-box
Kit Solution

Opportunities &Engagements

Product
Contracted Service© Digital Media Professionals Inc.

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Revenue cycle• Providing added value and maximizing LTV (Lifetime Value) of customers over the entire development life cycle(from planning to mass production) of customer products• By developing and providing standard products and services based on the technology and know-how cultivated incustomer projects, we will strive to respond flexibly and quickly to customer development and improve profitability.
Customerdevelopment
process

DMP
business

IP core licensebusiness

Survey / planning

PoC

Full-scale

development

development

Evaluation licenseprovision

Official licenseprovision

New IP creation

Professional
service business

LSI productbusiness

OperationMassproduction

Running royalty
Upgrade /maintenance

Subscription revenue

Consulting
AI development(learning /evaluation / tuning)

AI implementation /optimization forcustomer HW

Product development (contract /in-house) (SoC / Module)© Digital Media Professionals Inc.

Re-learning / optimization

In-house product sales(SoC / Module)

12Competitive advantage• Providing end-to-end AI solutions including hardware• Differentiation points are optimization of acceleration performance, cost, and power consumption,
which are specialized for the customer domain[Service function]
Strategy
formulationData
preparation• Confirmation of issues• Cost-benefit estimation• Determining datautilized• Amount / quality ofdata• Data preprocessing• Annotation

AI modelcreation andverification

Hardware• Learning model creation• Hardware acceleration• Model accuracy
performance, cost, power
verification
optimization• Mathematical optimization • Hardware agnostic• Confirming data flow
• Confirming Issues solving

Solution• Back end• Front end• UI / UX• General productization

DMP
AI development contract/ algorithm softwaredevelopment company
Source: DMP’s Industry Analysis (Reference: Nomura Securities Industry Research Report No. 242)

© Digital Media Professionals Inc.

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Topic for strengthening competitiveness

External sales of the result of collaboration with Yamaha motor• Launch external sales of camera systems (accepting order in first quarter), the result of collaboration
with Yamaha Motor, a business and capital partner• Support the entire product development process of customers by providing this camera system andrelated services◼ Outline of the high-precision, compact embedded monocular camera system• 35mm x 40mm compact embedded camera module equipped with Sony Semiconductor Solutions' high-sensitivity image
sensor "IMX390," a compact FPGA module, an extension module, and an SDK (Software Development Kit)
• By customizing the FPGA module and establishing a PC-based evaluation environment with SDK, a monocular camera
system can be easily developed in a short period of time according to user specifications.

Camera module• Start accepting orders in the first quarter of the fiscal year ending March 2022

◼ Provision of related service• DMP offers a variety of support services to add values to customers' products andservices, such as the provision of reference designs for FPGA designs including the"ZIA™ ISP" ISP core and "ZIA™ DV740" AI processor, custom FPGA designs, AI
recognition software development according to user applications, and system creation
linked to cloud environments such as AWS (Amazon Web Services).

Extension module

FPGA module• DMP will provide a wide range of supports, from optimal development kits to mass
production support, for customers who develop embedded systems for mobility products,
safety assistance systems, and surveillance systems in the industrial equipment field,
including factory automation, logistics, and security.
© Digital Media Professionals Inc.

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Topic for strengthening competitiveness

Capital and business alliance with Cambrian Inc.
Strengthening the portfolio and expanding business of robotics, a DMP’s
focused area

Cambrian’s Vision System• Sales of vision systems for collaborative robot arms
• Accelerating collaboration in the field of image recognition with major robotics
manufacturers◼ Outline of capital and business alliance• Capital participation as a minority shareholder (US $ 370,000 investment)• Exclusive distributor in Japan for a collaborative robot image recognition system(vision system) manufactured by Cambrian, USA• Joint development for collaborative robotics technology and product that leverages
the strengths of both companies◼ Features of Cambrian’s product• Immediate use by attaching to the arm of widely used collaborative robots such as UR• High versatility through AI-based object recognition and arm motion control• Low price compared to products of competitors• Support for very small size items (1 mm x 1 mm or less)• Compatible with a wide variety of items such as plastic, rubber, metal materials,
transparent and reflective surfaces• High processing performance with recognition time of less than 200ms and picking
success rate of 98%+ for electronic components© Digital Media Professionals Inc.

Application examples

Picking

Kitting

Cable insertion

Assembly15

Focus area strategy

Safe driving assistanceAim to become a market leader by cultivating existing customers’ projects and developing
new customers through our competitive advantage of being able to provide integrated
services from the cloud to the edge
• AI recognition model with a proven market record in near-miss image analysis and DMS• Comprehensive support from the edge (ZIA SAFE) to the cloud (ZIA Cloud SAFE)• Flexible response to customer needs with running royalty and subscription license models• Compatible with various hardware (strongly support customer’s device by professional services)© Digital Media Professionals Inc.

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Focus area strategy

Robotics
Aim to expand share of vast market by acquiring PoC projects of customers with high potential
followed by maximizing full-scale development opportunities through enhancing the technology
portfolio for robotics• Domain optimization with a comprehensive solution of algorithms, software and hardware• Differentiation by DMP 3D Perception (power, performance, cost)• Advanced AMR technology development through integration of automatic / autonomous driving and arm vision system• Providing RaaS utilizing ZIA Cloud technology• Robot operating environment optimization by 3D simulation (digital twin)

AMR (Autonomous Mobile Robot)
Collaborative robot arm
Vision system

Automatic / autonomous driving(UGV,AGV,PPM, Drone, etc.)

RaaS(Robotics
as a Service)

Optimization by digital twin

DMP 3D Perception

17© Digital Media Professionals Inc.

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Towards sustainable growth• Aim for sustainable organic growth as a platformer that provides XaaS in the focused areas to a wide rangeof customers by exerting the network effect through close collaboration with various platformers, service
providers and other ecosystems• Proactively consider non-organic growth through M&As and business alliances that contribute tocomplementing the competitiveness of our focused business areas
Safe driving
assistance

SaaS
Software as a Service

PaaS
Platform as a Service

IaaS
Infrastructure as a Service

ZIA Cloud SAFE

Robotics

Ecosystem

Robotics cloudservice

Cloud service (AWS, etc.）

ZIA SAFEZIA SLAM

AI platformer
Standards body

Dashcam operation
management,
Insurance services, etc.

RaaS

SIer, Service provider

Robotics as a Service© Digital Media Professionals Inc.

Expansion to otherindustries
Near-miss service forconstruction andmedical, etc.

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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 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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