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.

Fiscal Year Ended March 31, 2022

Results Briefing
Digital Media Professionals Inc.
May 16, 2022
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, 2022

2

Business Environment and Priority Measures,
Fiscal Year Ending March 31, 2023

3

Business Forecast, Fiscal Year Ending
March 31, 2023

© Digital Media Professionals Inc.

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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2022

2

Business Environment and Priority Measures,
Fiscal Year Ending March 31, 2023

3

Business Forecast, Fiscal Year Ending
March 31, 2023

© Digital Media Professionals Inc.

3

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 and CEO: Tatsuo Yamamoto
President and COO: Tsuyoshi Osawa

Capital1,838 million yen

Number of
consolidated
employees

69 (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
・AI FPGA module
・Vision system for collaborative robot

Professional service business・AI algorithm/computer vision software contracted development
・FPGA/Board contracted development
・Customer product/service support related tosafe driving assistance system and robotics© Digital Media Professionals Inc.

4

Competitive advantage• Pioneer in embedded GPUs, accumulating outstanding technologies in the fields of AI and visual computing• Development of domain-specific solutions based on full-stack technology of algorithms, software, and hardware• Proposal and development of optimal systems that integrate edge and cloud technologies[AI Service function]
Strategy
formulationData
preparation• Confirmation of issues• Cost-benefit estimation• Determining datautilized• Amount / quality ofdata• Data preprocessing• Annotation

AI modelcreation andverification

Hardwareacceleration*• Learning model creation• Performance, cost, power• Model accuracy
optimization
verification• Hardware agnostic• Mathematical optimization• Confirming data flow
• Confirming Issues solving

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

DMP
AI development contract/ algorithm softwaredevelopment company* Hardware acceleration: Converting part or all of the algorithm or system description expressed in C language into hardware (RTL), and combining the software with dedicatedhardware to improve performance
Source: DMP’s Industry Analysis (Reference: Nomura Securities Industry Research Report No. 242)

© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2022

Results Highlights: Main Topics⚫ Record-high annual sales• Net sales 1,667 million yen (+65％ year on year)• Compared to the initial sales forecast of 1,500 million yen +11％

⚫ Significant increase in sales in all focused fields• Safe driving assistance +234％ year on year

• Robotics+42％ year on year

• Amusement+79% year on year

⚫ Mass production of semiconductors incorporating DMP’s AI processor IP "ZIATM
DV720" has started for consumer products in Japan and overseas⚫ Started customer installation of Cambrian vision system for collaborative robots© Digital Media Professionals Inc.

6

Fiscal Year Ended March 31, 2022

Results Highlights: P/L
Net sales grew and losses improved significantly due to higher sales in all
businesses: IP core license, product, professional service(Unit: million yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

1,009

1,667

+658

-425

-126

+298

-361

-122

+238

-364

-157

+207

Amount change⚫ Net sales increased 65.2% and operating loss improved by 298 million yen year-on-year due to higher sales in IP
license, product, and professional service businesses.
⚫ Ordinary loss improved by 238 million yen year-on-year despite the absence of 60 million yen in subsidy income
related to the NEDO project, which was recorded as non-operating income last fiscal year.
⚫ Net loss attributable to owners of the parent improved by 207 million yen year-on-year, despite recording an
extraordinary loss of 33 million yen for loss on valuation of marketable securities.

© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2022

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¥144 million
last year

Same period
Safe driving assistance¥49 million¥163 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 ¥173 million

Robotics field
Product business¥1,199 million

Same period¥658 million
last year●Recorded sales of RS1 for mass production, camera modules for massproduction drones, and Cambrian vision systems

Professional service
business¥295 million

Same period¥206 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.

¥236 million

Same period¥166 million
last year●In addition to recording revenues of new IP license revenue, camera
modules for mass-production drones, and Cambrian vision systems, AI
contract development projects got active.

Amusement field¥1,155 million

Same period¥646 million
last year●Recorded sales of RS1 for mass production

Other¥111 million

Same period¥148 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.

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Fiscal Year Ended March 31, 2022

Results Highlights: B/S
Equity ratio remains high at 89.2%
Continued to secure funds for working capital and investments for enhancement of R&D system(Unit: million yen)

End of March
2021

End of March2022

AmountchangeMajor factors

Current assets

2,736

2,784

+47

Accounts receivable - trade and contract assets+231, Cash and deposits -63, Securities -45,
Consumption tax receivable -32, Inventories -12

Non-current assets

740

688

-52

Software -54

3,477

3,472

-5

Current liabilities

208

358

+150

Non-current liabilities

18

18

-0

Total liabilities

227

377

+150

Total net assets

3,250

3,095

-155

Total liabilities andnet assets

3,477

3,472

-5

Total assets© Digital Media Professionals Inc.

Accounts payable - trade +128, Consumption tax
payable +41

Retained earnings -157

9

Fiscal Year Ended March 31, 2022: Progress of Initiatives

Safe Driving Assistance Field
The business expanded on the strength of integrated edge-to-cloud solutions⚫ 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
Shipment in the fiscal year ending March 2023 due to semiconductor shortage⚫ Won PoC project for detection of dangerous behaviors in public transportation© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2022: Progress of Initiatives

Robotics Field
Progress in expanding solutions for autonomous mobile robots and robotic picking,partnering, and producing results⚫ Expansion of the ZIA™ portfolio• ZIA™ MOVE: Software for autonomous mobile robots that encompasses ZIA™ SLAM and provides a complete set ofperception, judgment, 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 centered on PoC, including ones for Yamaha Motor, are getting more active• Continued collaboration with Yamaha Motor on AI implementation in various products, including field testing• Started providing edge AI platform and integration services using event-based vision technology with Restar Electronics andProphesee• The number of business projects with other customers, mainly PoC, is increasing.

⚫ Started and expanded business with Cambrian vision systems• Invested in Cambrian, a company that develops and sells vision systems for collaborative robots, as a minority shareholder,and partnered with Cambrian for sales in Japan and technology complement• Jointly developed applications, concluded contracts for specific projects with end customers, and made business progresses
through collaborations with robot trading companies and SIers© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2022: Progress of Initiatives

Robotics Field - Event-based Vision Solution⚫ Event-based Vision Technology• Asynchronous detection of only those pixels that have changed due to subject motion or changes
in the surrounding environment• Realizes data savings, ultra-low power consumption, high-speed and high-sensitivity sensing,and high dynamic range*.
• Solves the problems of conventional machine learning of frame images, such as a collection ofhuge amounts of data for training, huge amount of computing power, and limitation of recognition
due to light conditions⚫ Collaboration with Restar Electronics and Prophesee

Image by courtesy of Prophesee• Launch of edge AI platform and integration services using event-based vision technology• Target markets: Recognition and motion line monitoring of people and vehicles at intersections, street corners, downtown areas,
stores, inside buildings, train stations, airports, etc.

Event-based sensors anddevelopment environment(METAVISION)/machine learningalgorithms• AI learning from machine learningalgorithms and inference model
creation• Integration into ZIA™ C3 FPGA
modules and other edge AI• Optimization from algorithm tohardware to achieve target accuracy
and performance

Provide total service tocustomers, including dataacquisition, provision of edge AI
platform, and system installation*Dynamic range: the ratio of the maximum to the minimum value of the signal, light or brightness in this case, that can be processed. Areas beyond
the dynamic range result in washed-out or blacked-out© Digital Media Professionals Inc.

Appearance of ZIA™ C3 and Prophesee's
event-based sensor camera

12Fiscal Year Ended March 31, 2022: Progress of Initiatives

Robotics Field - Cambrian Vision System⚫ Advantages of Cambrian's Vision System• Can be attached to the arms of cooperative robots from various companies, including
universal robots• Compatible with items as small as 1 mm x 1 mm or less
• Suitable for plastic, rubber, metal materials, glossy, black, transparent, reflective surfaces, etc.
• High-speed 200ms of recognition processing• Over 95% picking success rate
• DMP AI functions can be added (e.g., OCR, object recognition)• Applications: bulk picking, cable insertion and wiring, kitting and assembly of a wide variety of parts for assembly⚫ Jointly developed and started offering "Automatic Mail Sorting
System" with Takashima Robot Marketing• Combination of Takashima Robot Marketing's Universal Robot cooperative robots
and DMP's Cambrian vision system and AI character recognition software• Automation and manpower saving in mail sorting⚫ Collaboration with SIer and robot trading companies to develop customers and applications
Closed deals and progressed in specific projects to save manpower and improve productivity for end customers, mainly inthe automotive and EV industries, by leveraging the advantages of Cambrian's products© Digital Media Professionals Inc.

郵便物自動仕分けシステムの原理試作

13

Fiscal Year Ended March 31, 2022: Progress of Initiatives

Other⚫ Expansion of Amusement Business, Large-Scale Order
Received a large-scale order of 1,602 million yen for RS1 to be delivered to the customer
in April 2022 or later⚫ Adoption of GPU/AI IP, start of royalty business• DMP's 3D graphics IP "ant300" and 2D graphics IP "K3000" were adopted for
OM Digital Solutions' new mirror-less SLR camera "OM SYSTEM OM-1"
The balance between rendering performance and silicon size, as well as customizationand technical support based on DMP's extensive knowledge of GPUs, were highly evaluated• Won royalty business of AI processor IP "ZIATM DV720" adopted for consumer products scheduled to start in the fiscal year
ending March 31, 2023

© Digital Media Professionals Inc.

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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2022

2

Business Environment and Priority Measures,
Fiscal Year Ending March 31, 2023

3

Business Forecast, Fiscal Year Ending
March 31, 2023

© Digital Media Professionals Inc.

15

Fiscal Year Ending March 31, 2023

Business Environment⚫ Japan / World Economy• Uncertainty is expected to continue, although degrees vary by region and country, due to theimpact of the prolonged COVID-19 disaster and increased geopolitical risks, such as the situationin Ukraine⚫ Semiconductor / AI Industry• Excess demand and supply shortage for semiconductors is expected to continue in the short term,and demand for AI/IoT is expected to grow in the medium term as well
• Acceleration of innovation and increased AI roles are expected for solving social problems
including the declining birthrate and the aging population, the COVID-19, and the climate change⚫ Amusement Machine Industry• The introduction of smart pachinko, pachislot machines type 6.5 and smart pachislot is expected to
expand game features and stimulate the market• Concerns over a decline in halls' willingness to invest due to a lull in demand for replacement ofold and new regulation machines, and a shortage of semiconductors and materials required formachine manufacturing© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2023

Business Environment - Solving Social Issue (Labor Shortage) with Robots
The most promising industries for the introduction of robots from working population andlabor shortage point of view are manufacturing followed by construction, transportation,
medical and welfare, and agriculture.
Workforce / Labor shortage rate by Industry
D.I.
Labor shortage D.I.

Workforce (ten thousand)

Manufacturing
Construction
Transportation, Postal
Wholesale, Retail
Medical, Welfare

Agriculture
Lodging, Food and BeverageLifestyle Related Services, Entertainment
Academic research, Professional and technical services

Real estate, Renting of goods
Information and Communication

SourceWorkforce: Of the workers by industry and occupation in the March 2022 Labor Force Survey (Statistics Bureau, Ministry of Internal Affairs and Communications), DMP counted the number of workers in the
agriculture, forestry, and fishing industry, production process workers, transportation and machine operators, construction and mining workers, transportation, cleaning, and packaging workers, and care service
workers, which are occupations where the introduction of robots is expected to have higher effects.
Labor shortage D.I.: D.I. (Diffusion Index) of excess/shortage of workers (shortage - excess) for transportation/machine operation, skilled workers, simple workers, and services (medical and welfare only)
from the February 2022 Survey of Labor and Economic Trends (Ministry of Health, Labor and Welfare), weighted by the number of workers in the above occupational categories.
(For agriculture, the employment situation D.I. from the January 2022 Agricultural Business Conditions Survey (Japan Finance Corporation) was used.)© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2023

Priority Measures: Safety Field◼ Aim for stable growth by providing new IP core licenses, recurring businesses, and professional services◼ Expand business from safe driving assistance to broader safety field⚫ Business expansion by deeply cultivating existing customers and acquiring new customers• Total support from edge (ZIA SAFE) to cloud (ZIA Cloud SAFE)• Improvement in accuracy of existing functions and development of new functions⚫ Recurring business growth• Subscription revenue growth through expansion of customer project base
• Expansion of running royalties by utilizing OTA* (Over-the-Air) as well

SafetyPublic safety, Smart city

⚫ Business expansion from safe driving assistance to broader
safety field• Perimeter monitoring of commercial vehicles• Hazard detection and prediction for public transportation• Contribution to smart cities (human attributes, flow, headcount,hazard detection/prediction)

Safe driving
assistance*OTA (Over-the-Air): Technology to send and receive data (software) via wireless communication© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2023

Priority Measures: Robotics Field◼ Expand reach to industries with high robotics implementation effectiveness (manufacturing, transportation, etc.)◼ Focus on areas and technologies where the DMP robotics portfolio can demonstrate competitive advantages andadd values⚫ Refinement and focus of proprietary technologies• Further improve accuracy and functionality of existing ZIA series such as ZIATM SLAM (MOVE)• Develop and productize element technologies that can demonstrate competitive advantages⚫ Collaboration with other companies and establishment of an ecosystem• Continue AI implementation projects for various Yamaha Motor applications, and horizontallydeploy joint deliverables
Collaborative• Collaborate with the ecosystem (technology trading companies, SIers, service/tech platformers, etc.)
Robot
to expand reach to manufacturing, transportation, and other industries where robots are highly effective⚫ Expansion of Cambrian vision system businessMaximize customer projects by leveraging strengths such as accuracy, speed,
and a wide range of picking targets⚫ Pursuit of high added value• Acquire added value by combining Cambrian vision system with DMP’s OCR function,
non-CAD picking function, etc.
• Increase the weight of IP core license business with higher added value© Digital Media Professionals Inc.

AMR（Autonomous
Mobile Robot）

19

1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2022

2

Business Environment and Priority Measures,
Fiscal Year Ending March 31, 2023

3

Business Forecast, Fiscal Year Ending
March 31, 2023

© Digital Media Professionals Inc.

20

Fiscal Year Ending March 31, 2023

Consolidated Business Forecast
Forecasting 42% increase in sales and return to profitability for the fiscal year ending March 31, 2023
Contribute to "realization of a safe and secure society" and "solution of social issues" and expand image
processor business• Amusement: Continue mass production shipments of image processor RS1 in response to large-scale orders• Safety: Continue to grow business for dashcams and expand into the public safety field• Robotics: Develop a portfolio of DMP products and services with competitive edges for autonomous mobile robots andcollaborative robots• Continue to invest in human resources to strengthen the development system for mid-term sustainable growth
2,370
98
FY March 2022
FY March 2023
(Unit: million yen)
290
(Actual)(Forecast)
1,667
263

Net sales

1,667

2,370

Operating income

△126

25

Ordinary income

△122

25

Net income attributableto owners of the parent

△157

20

111
236
163
1,719
1,155

Fiscal 2022 March
Amusement© Digital Media Professionals Inc.

Fiscal 2023 March
SafetyRobotics

Other

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