(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 Nine Months ended December 31, 2022 (Japanese GAAP)
February 9, 2023
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: Tomoyuki Ietaka, Executive Officer, CFO, General Manager of Accounting/Corporate Planning Dept.Tel. (03) 6454 - 0450
Scheduled date of filing Quarterly Securities Report: February 10, 2023
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 nine months ended December 31, 2022 (April 1, 2022 through December 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net sales

Operating income% Millions of yen% Millions of yen
1,579
23.5
△60
△58
－
9 months ended Dec 31, 2021
1,279
53.4
△91
－
△90
Reference) Comprehensive income: △55 million yen as of Dec 31, 2022; △87 million yen as of Dec 31, 2021
Millions of yen

9 months ended Dec 31, 2022

Net income per shareyen△19.13△29.129 months ended Dec 31, 2022
9 months ended Dec 31, 2021

Net income attributable toowners of parent

Ordinary income%－－

Millions of yen

△60
△91

%
－
－

Net income per sharedilutedyen－－(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of December 31, 2022
3,557
3,039
As of March 31, 2022
3,472
3,095
Reference) Shareholders' equity: 3,039 million yen as of Dec 31, 2022; 3,095 million yen as of March 31, 2022

%
85.5
89.2

2. Cash dividends
Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
Year ended March 2022
0.00
0.00
Year ending March 2023
0.00
Year ending March 2023 (Forecast)
0.00Note) Revision of dividends forecast during the period: None
1Q-end
yen
-

Total
yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2023 (April 1, 2022 through March 31, 2023)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
2,370
42.1
25
Note) Revision of forecasts during the period: None

Ordinary income% Millions of yen
25-1-(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
20
6.35

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 Dec 31, 2022

3,152,400 shares

As of March 31, 2022

3,152,400 shares

As of March 31, 2022

4,122 shares(2) Number of treasury shares at the end of the period
As of Dec 31, 2022

5,122 shares(3) Average number of shares issued during the period
9 months ended Dec 31, 2022

3,147,278 shares

9 months ended Dec 31, 2021

3,148,662 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."-2-

1. Qualitative information on quarterly financial results(1) Financial position and operating results
During the nine-month period ended December 31, 2022, the Japanese economy showed signs of a gradual recovery
due to efforts to ease behavioral restrictions and revitalize socioeconomic activities amid the eighth wave of theoutbreak of the new coronavirus infection. At present, however, the impact of the rapid depreciation of the yen and the
sharp rise in prices and energy costs on the economy and people's lives has become apparent, and economic
measures have been budgeted by the government. Looking ahead, with the scheduled transition of the new coronavirus
infection from category 2 equivalent to category 5 under the Infectious Diseases Control Law this spring, Japan willtake a major step toward normalizing socioeconomic activities, but challenges remain, such as managing the risk ofperiodic outbreaks. In the world, the risk of economic recession has become apparent due to high raw material andfood prices and supply-side constraints caused by the situation in Ukraine in addition to the effects of monetary
tightening.
In the semiconductor industry to which our group belongs, the continued shortage of semiconductor supplies due tostrong demand in various industries is affecting the production of electronic equipment including automobiles that uses
semiconductors. In the medium term, demand is also expected to grow for IoT, where everything is connected to theInternet, artificial intelligence (AI), big data, next-generation high-speed communication standards, and automateddriving.
In the field of AI/visual computing, which is the business domain of our group, the acceleration of innovation and theincreasing roles of AI are expected in solving social and environmental issues, including a decrease in the working
population due to declining birthrate and aging population, COVID-19 pandemic and climate change, and in realizing asafe and secure society.
In this environment, the basic policy of our group's medium-term business plan is to achieve Creating Shared Value(CSV) management that will enhance corporate value by contributing to the resolution of social and environmental
issues and earning revenue and profits at the same time. In the core fields of safe driving assistance (safety) androbotics, we will maximize customer lifetime value (LTV) by providing added value through the development of IP core
license business, product business, and professional service business, based on our integrated development systemfrom algorithms and software to our strength, hardware, throughout the development lifecycle of customer products
and services from the planning stage to mass production.

As for specific initiatives and achievements in our focused fields during the third quarter of the current fiscal year, firstly,in the safety field, we earned recurring revenue from existing projects from the edge to the cloud, as well as new
licenses and professional services for new customers and new projects of existing customers. The recurring businessincluded an OTA (Over the Air) project to wirelessly implement our software in dashcams already installed in end-user
vehicles. In addition, several PoC projects for safety in a broader sense have progressed.
In the robotics field, while identifying and promoting PoC projects for customers, we launched "ZIA SV," a stereo vision
IP for AMD Xilinx adaptive computing devices. This IP enables high-speed, high-precision distance measurement inapplications such as autonomous and collaborative robots. In addition, with regard to the business of the vision systemfor cooperative robots by Cambrian Inc., a capital and business partner, we have made progress in business projects
aimed at reducing labor and improving productivity for end customers in the manufacturing industry, particularly theautomobile industry. Furthermore, to expand the ecosystem, we have made the Cambrian vision system compatible
with collaborative robots manufactured by Doosan Robotics of South Korea, which Sumitomo Shoji Machinex Co., Ltd.
handles as the sole distributor in Japan.
-3-

In the amusement field, we continued shipping our image processing semiconductors, "RS1," for mass production in
response to the large-scale order, and the sales of chassis of ZEEG Corporation, a joint venture between Sammy
Corporation and Universal Entertainment Corporation, equipped with "RS1" exceeded 100,000 units for 10 models. We
continue to seek to expand our market share in market segments where we can leverage the advantages of this unique
2D/3D integrated chip.
Other initiatives include the development of an AI IP processor that significantly outperforms current products.

With regard to business results for the nine-month period ended December 31, 2022, in the product business, we
continued mass production shipments of the RS1 image processing semiconductor and shipped ZIA C3 kits for volume
production, camera modules for drone mass production, and Cambrian vision systems. In the IP core license business,
we recorded recurring revenue in the fields of safety and robotics in addition to AI/GPU running royalty income. In theprofessional service business, we provided contracted AI/GPU contracted development services.

As a result, we recorded net sales for the nine-month ended December 31, 2022 of 1,579 million yen (up 23.5% fromthe same period of the previous year), operating loss of 60 million yen (operating loss of 91 million yen for the same
period of the previous year), ordinary loss of 58 million yen (ordinary loss of 90 million yen for the same period of theprevious year) and net loss attributable to owners of the parent of 60 million yen (net loss of 91 million yen for the same
period of the previous year). We turned into the black with net sales of 654 million yen and operating income of 41
million yen in the third quarter from October through December 2022.

As our group operates in a single segment, segment information is not provided, but a summary of results by businessis as follows.
a) IP core license businessNet sales amounted to 158 million yen (132 million yen in the same period of the previous fiscal year), mainly due tothe recording of new IP licenses and recurring revenue in the fields of safety including OTA, and robotics in addition to
AI/GPU running royalty income for digital equipment such as digital still cameras, 4K TVs and office automationequipment.
b) Product businessNet sales amounted to 1,343 million yen (955 million yen in the same period of the previous fiscal year) due to sales
from mass production shipments of the RS1, volume shipments of the ZIA C3 kit for peripheral monitoring of commercial
vehicles, camera modules for drone mass production, and Cambrian vision systems.
c) Professional service businessNet sales amounted to 78 million yen (191 million yen in the same period of the previous fiscal year) due to a decreasein customers’ development projects.

A summary of results by field is as follows.
a) Safety field
Net sales amounted to 117 million yen (78 million yen in the same period of the previous year), mainly due to sales
from volume shipments of the ZIA C3 kit for peripheral monitoring of commercial vehicles, professional services income,and recurring income including OTA.
b) Robotics field
Net sales amounted to 86 million yen (196 million yen in the same period of the previous fiscal year) due to a decrease-4-

in customers’ development projects in the professional service business, despite the recording of revenue mainly fromthe IP core license business, Cambrian vision systems, and camera modules for drone mass production.
c) Amusement field
Net sales amounted to 1,291 million yen (919 million yen in the same period of the previous year), mainly due to themass production shipments of RS1.
d) Other
Net sales amounted to 83 million yen (85 million yen in the same period of the previous fiscal year), mainly due to therecording of AI/GPU running royalty income for digital equipment.

(2) Financial position
Overview of assets, liabilities and net assets(Assets)
Current assets at the end of the third quarter amounted to 3,097 million yen, up 313 million yen from the end of theprevious fiscal year mainly attributable to increases in accounts receivable and contract assets (up 279 million yen),
and cash and deposits (up 37 million yen). Noncurrent assets amounted to 459 million yen, down 228 million yen fromthe end of the previous fiscal year mainly attributable to decreases in investment securities (down 199 million yen) due
to early redemption and software (down 15 million yen).
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the third quarter amounted to 517 million yen, up 140 million
yen from the end of the previous fiscal year mainly attributable to an increase in accounts payable (up 151 million yen).
(Net assets)
Net assets at the end of the third quarter amounted to 3,039 million yen, down 55 million yen from the end of theprevious fiscal year mainly attributable to a decrease in retained earnings (down 60 million yen).
As a result, the equity ratio was 85.5%.

(3) Consolidated financial forecasts and other forward-looking statements
There is no change to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2023, announced
on May 13, 2022.
In the nine-month period ended December 31, 2022, net sales grew mainly due to higher sales in the amusement field,
and the losses improved from the same period of the previous fiscal year. We turned into the black with operating
income of 41 million yen in the third quarter from October through December 2022.
In the fourth quarter, we expect license and professional service revenues in the safety field, revenue growth from
Cambrian vision systems and other products that contribute to manpower and labor savings in the robotics field, andhigh-margin revenues in other field, such as GPU IP license business acquisition and AI/GPU IP running royalty income
in addition to the continued volume shipments of "RS1" image processing semiconductors for the amusement market.
Actual performance may differ significantly from the forecast figures due to various factors.

-5-

2. Consolidated quarterly financial statements and major notes(1) Consolidated quarterly balance sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade and contract assets
Securities
Merchandise and 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
Provision for product warranties
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
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

Previous year
(As of Mar 31, 2022)(Yen thousand)Current Q3 period(As of Dec 31, 2022)

2,002,540
388,772
300,000
11,501
1,029
26,75653,4492,784,051

2,040,396
668,687
300,000
13,8602,371
27,12045,353
3,097,789

39,51957,28050,38323,02573,40834,95425
34,979507,481
67,727575,209688,137
3,472,189

307,698
59,525367,224
459,485
3,557,274

260,342
15,146
17,081
66,056358,626

411,808
5,533
21,26060,508499,110414
17,665
18,079376,706414
17,86018,275517,386

1,838,882
1,858,093-597,659-1,615
3,097,700

1,838,882
1,858,093-657,870-1,615
3,037,490-1,835-381-2,217
3,095,483
3,472,189

-835
3,233
2,398
3,039,888
3,557,274

(2) Consolidated quarterly statements of income and comprehensive income (nine months ended December 31, 2022)
Consolidated quarterly statements of income(Yen thousand)Previous Q3 period (YTD)

Current Q3 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Dec 31, 2021)

To Dec 31, 2022)

Net sales

1,279,593

1,579,826

Cost of sales

835,747

1,011,726

Gross profit

443,845

568,099

Selling, general and administrative expenses

535,767

629,052

Operating loss

-91,921-60,953

Interest income

1,514

1,048

Subsidy income

-

1,969

241

-

1,755

3,018

215

-

-

548

57

9

Non-operating income

Miscellaneous income
Total non-operating income
Non-operating expenses
Foreign exchange losses
Loss on redemption of securities
Miscellaneous loss
Total non-operating expenses

272

557

-90,437-58,493

Gain on liquidation of subsidiaries

328-

Total extraordinary income

328--90,109-58,493

1,717

1,717

Ordinary loss
Extraordinary income

Loss before income taxes
Income taxes - current
Income taxes - deferred

-155

-

Total income taxes

1,561

1,717

Loss

-91,670-60,210

Loss attributable to owners of parent-91,670-60,210

Consolidated quarterly statements of comprehensive income(Yen thousand)Previous Q3 period (YTD)

Current Q3 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Dec 31, 2021)

To Dec 31, 2022)

Loss
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests-7--91,670-60,210

4,062

1,000

-9

3,615

4,052

4,615

-87,617-55,594-87,617-55,594--

(3) Notes to quarterly consolidated financial statements(Notes on going-concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders' equity)
Not applicable(Change in accounting policy)
Not applicable(Segment information, etc.)[Segment information]
The Group's business is comprised of a single segment, the development, manufacture, and sale of IP cores and otherproducts, as well as related operations. Therefore, this information is omitted from this report.

-8-

3. Other(1) Significant events on going-concern assumption
Not applicable(2) Recent quarterly business performance
Fiscal year ending March 31, 2023
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Apr 2022 - Jun 2022

Jul 2022 - Sep 2022

Oct 2022 - Dec 2022

Jan 2023 - Mar 2023

Net sales

387,671537,683

654,471-

Gross profit

119,257

189,660

258,820-

Operating income/loss (-)-89,267-13,573

41,887-

Ordinary income/loss (-)-83,735-10,570

35,813-

Income/loss (-) before
income taxes-83,735-10,570

35,813-

Net income/loss (-)-84,308-11,143

35,240-Net income/loss (-)
attributable to owners of
the parent-84,308-11,143

35,240-Comprehensive income-79,661-10,990

35,057--26.79 yen-3.54 yen

11.20 yen-(thousand yen)

Net income/loss (-) per share

End of 1st QuarterEnd of 2nd QuarterEnd of 3rd QuarterEnd of 4th Quarter

Total assets

3,463,998

3,485,580

3,557,274-

Net assets

3,015,821

3,004,830

3,039,888-

Net assets per share958.23 yen

954.74 yen

965.88 yen-

First Quarter
Apr 2021 - Jun 2021

Second Quarter
Jul 2021 - Sep 2021

Third Quarter
Oct 2021 - Dec 2021

Fourth Quarter
Jan 2022 - Mar 2022

Net sales

250,518

440,014589,060

388,398

Gross profit

69,584

168,322205,938

160,616

Operating income/loss (-)-95,864-14,080

18,023-34,699

Ordinary income/loss (-)-95,848-13,155

18,566-32,193

Income/loss (-) before-95,848-13,155

18,895-65,836

Net income/loss (-)-96,369-13,675

18,374-65,526

Net income/loss (-)
attributable to owners of
the parent-96,369-13,675

18,374-65,526

Comprehensive income-95,826-12,419

20,628-67,017-30.60 yen-4.34 yen

5.83 yen-20.81 yen

Fiscal year ended March 31, 2022
(thousand yen)income taxes

Net income/loss (-) per share

End of 1st QuarterEnd of 2nd QuarterEnd of 3rd QuarterEnd of 4th Quarter

Total assets

3,399,847

3,432,453

3,634,784

3,472,189

Net assets

3,154,649

3,141,872

3,162,500

3,095,483

1,001.85 yen

997.90 yen

1,004.45 yen

983.23 yen

Net assets per share-9-