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.

Business Plan and Growth Potential
Digital Media Professionals Inc.

October 12, 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.

Agenda◼ Company overview◼ Business model and competitive advantage• Business model / Revenue cycle• Competitive advantage• Revenue / Cost structure◼ Market trend◼ Growth strategy / Business plan
◼ Risk information◼ Handling of this material◼ Supplementary material© Digital Media Professionals Inc.

2

Company overview© Digital Media Professionals Inc.

3

Company Profile
We are a fabless semiconductor vendor with a proven track record as one of the world's leading GPU IP vendors since its founding. In recent years,
in order to become the world's leading "AI Computing Company," we are contributing to solving customer and social issues by providing end-to-end
AI services from algorithm/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.

4

Focused businesses / fields and sales (composition) (March 2021)●Business
IP core license●Field¥144M (14%)

Safe driving assistance・Provision of AI licenses, products, andprofessional services for advanced driverassistance systems and driver monitoring systems
that utilize dash cams, etc.

・AI/GPU IP core license
・AI software license

Product

Robotics¥658M (65%)

・Graphic processing LSI for amusement market
・AI FPGA module
・Vision system for collaborative robot

Professional service¥49M (5%)¥166M (16%)

・Provision of AI licenses, products, and professional
services for robotic products (robotic vehicles,
collaborative robots)¥206M (20%)

Amusement

・AI algorithm, computer-vision software contracted development
・FPGA/board contracted development
・Customer product/service development
support in safe driving assistance androbotics fields¥646M (64%)

・Provision of products and support for
the amusement market (amusement machines)

Other¥148M (15%)

・Provision of IP core licenses (initial license,
running royalty) for digital devices, etc.
・Other© Digital Media Professionals Inc.

5

Business model and competitive
advantage© Digital Media Professionals Inc.

6

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 “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.

7

Revenue cycle• Providing added value and maximizing LTV*1 (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*2

Full-scale

development

development

Evaluation licenseprovision

Official licenseprovision
New IP creation

Professional
service business

Productbusiness

OperationMassproduction

Running royalty
Upgrade /maintenance

Subscription revenue

Consulting
AI development(learning /evaluation / tuning)

AI implementation /optimization forcustomer HWRe-learning / optimization

Product development (contract /in-house) (SoC / Module)

In-house product sales(SoC / Module)*1 LTV: Abbreviation for Lifetime Value. The profit earned from the beginning to the end of transactions with a customer (customer lifetime value)*2 PoC: Abbreviation for Proof of Concept. Verification and trial about feasibility before introducing a new concept, theory or principle in full scale© Digital Media Professionals Inc.

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Competitive advantage• Providing comprehensive AI solutions including hardware acceleration*• Differentiation points are optimization of acceleration performance, cost, and power consumption,
which are specialized for the customer domain*Hardware acceleration: Rewriting part or all of the algorithm or system description written in C language software into
hardware (RTL) and combining software and dedicated hardware to improve performance.

[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.

9

Revenue / cost structure
Cost to sales ratio rises with increase in product sales (ratio) and falls with increase in IP core license sales (ratio)

IP core license

Product

Professional service

Cost to sales ratio

1,328(Million Yen)

1,086
59%

491

67%

394

1,009

49%

206

553

658

364
230
Mar-19380

144
Mar-20Mar-21

Note: Non-consolidated basis for the fiscal year ended March 31, 2019 and March 31, 2020, and consolidated basis for the fiscal year ended March 31, 2021

© Digital Media Professionals Inc.

10

Cost structure• SGA (selling, general and administrative expenses) are mainly R&D and personnel expenses.
• R&D expenses increased due to the development of technologies and solutions for medium-term growth.
R&D expenses are expected to remain at the same level as in FY 2021 March since we have developed
the base technology.
Personnel

Commission(Million Yen)

R&D

Other

760
588
421
142

214

199
257
150

77
45

43

97

156

195

190

Mar-19Mar-20Mar-21

Note: Non-consolidated basis for the fiscal year ended March 31, 2019 and March 31, 2020, and consolidated basis for the fiscal year ended March 31, 2021

© Digital Media Professionals Inc.

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Market trend© Digital Media Professionals Inc.

12

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.

14

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.

15

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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Growth strategy / Business plan

© Digital Media Professionals Inc.

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Basic policy

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.

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

COVID-19

Climate change

DMP’s Initiatives

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• Contributing to productivity improvement, work efficiency
improvement, labor saving to complement and mitigate thedecrease in the working population, hard work, and COVID-19
damage by making efforts for automation and autonomy in thefield of robotics• Contributing to real-time accident prevention and safe driving
education based on near-miss events by providing safe driving
assistance services• Contributing to MaaS promotion through autonomous driving
technology• Providing a VR (Virtual Reality) environment for customer
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

Contribution to SDGs

© 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 share20Revenue structure and key activities for revenue growth
Maximize revenue through technology innovation, customer / ecosystem management,
and operations management
Key activities to revenue growth

Key measures to revenue growth

Maximize customer
LTV
Revenue by
customer
Revenue×

Increase walletshare
Acquire newcustomers

Number ofcustomers

1. Technology innovation
Maximize customer LTV, increase wallet share,retain and acquire customers by improving
technology / products / services and expanding
lineup

2. Customer / ecosystem management
Retain and acquire customers and complement
technologies by improving relationships withvarious ecosystems including customers andrevitalizing collaboration

3. Operations management
Retain existingcustomers

Strengthen development competitiveness, improvecustomer satisfaction, and improve revenue by
strengthening
development
personnel
andcontrolling quality, cost, and delivery© Digital Media Professionals Inc.

21

Key activities for revenue growthTechnology innovation
Increase the value provided, maximize customer LTV, increase wallet share, retain and acquire customers by
improving various technologies / products / services, expanding the lineup, and organically combining them
Until March 2020

March 2021

March 2022 and beyond

ZIA DV500/700/720

ZIA DV740

Hardware IP

ZIA ISPAI platform

ZIA SAFE (Edge)ZIA Cloud SAFE (Cloud)ZIA MOVEZIA Plate

AI recognition
software model

ADAS/DMS AI models

ZIA SLAM
Distance estimation for drone
Wire detection for drone/robot

AI benchmarking

ZIA Showcase
Amusement LSI: RS1

Product/Module

ZIA C3 (AI FPGA module)
Camera system with Yamaha Motor

Safe driving assistance

Robotics

Cambrian vision system© Digital Media Professionals Inc.

22

Key activities for revenue growth

Customer/Ecosystem management
Retain and acquire customers and complement technologies by improving relationships with various
ecosystems including customers and revitalizing collaboration
Ecosystem

ExampleDevelopment

Manufacturing

Sales

・Requirement definition
・Selection of・Focus on growth fields
・Collaboration withbased on customer
manufacturing
sales partners
・Collaboration withneeds
contractors
platformers / sales partners ・QCD optimization
・Technology complement ・Manufacturing process to create markets andwith Tech Companies as management
maximize customer reachneededDMP

Customer・Yamaha Motor

Technology

・Cambrian・Prophesee

Platformer

・NVIDIA
・AWS

Needs

・Renesas

After-sale/Operation
・Product improvement
and new productplanning based on VOC・ Improvement ofcustomer satisfaction

VOC (Voice of Customer)

Technology
complement
Customer base

Sales Marketing/ ・RESTAR ・Ryosan
・PALTEK
SIer

Manufacturing

Marketing

Cloud Operation

Market info/Customer
base/Distribution
Development/
Manufacturingoutsource© Digital Media Professionals Inc.

23

Key activities for revenue growth

Operation management
Strengthen development competitiveness, improve customer satisfaction, and improve revenue by
strengthening development personnel and controlling quality, cost, and delivery
Infrastructure
Human resource development
Development

Manufacturing

Marketing・Selection of contractors
・VOC utilization
・Quality management

Quality・Quality management

Cost

・Selection of hardware ・BOM optimization
・VA/VE

Delivery・Thorough schedulemanagement
・Time to Market

Human resource
development

・Recruitment and training ofengineers
・Strengthening of project managers

・Promotion of market
understanding

Infrastructure

・Enhancement ofdevelopment tools

・Marketing tools

Sales
・VOC utilization

After-sale/
Operation
・VOC utilization
・Operation costmanagement

・Thorough schedulemanagement

・Thorough schedulemanagement© Digital Media Professionals Inc.

・Strengthening ofcloud engineers
・SFA utilization
24

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.

25

Focus area numerical target

Safe driving assistance◼ Flexibly respond to customer needs and secure stable revenue by recurring business
Increase the wallet share and the number of customers by improving/adding functions / performance of ZIA SAFE (edge)
and ZIA Cloud SAFE (cloud) launched in the fiscal year ended March 2021 (Recurring revenue ratio: 10% for the fiscal
year ended March 2021 → 57% for the fiscal year ending March 2026)◼ Provide professional services tailored to customer project requirements
Safe driving assistance sales (Million Yen)

Recurring revenue

Recurring revenue

Running royalty revenue (Edge)
Royalty unit price

Function unit price××

Shipments by customer

No. of functions adopted

No. of projects+

Subscription revenue (Cloud)Shipments by PJ

×289

Price per PV

230

×

183
PVs by customer

No. of projects

No. of customers

36

110
110

32

110

No. of PVs by PJ

×Wallet share

No. of customers

44

110

49

112

22

Wallet share

313

358

48

×
×

Other

40

※PV (Browsing of cloud analysis page)××

Professional service

23

5

Mar-21© Digital Media Professionals Inc.

143

163

204

88
23
Mar-22Mar-23Mar-24Mar-25Mar-2626

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

27© Digital Media Professionals Inc.

27

Focus area numerical target

Robotics◼ Aim for growth that exceeds the market growth rate through total solutions of algorithms, software, and DMP’s
strength of hardware (CAGR 48% ↔ Domestic robot market* CAGR 19% (FY2020 133.6 billion yen → FY2026 385.8 billion yen)
(There were restraints of customer development investment in FY2020. CAGR for 6 years is 36% from the actual result of 189 million yen in FY2019)⚫ IP core license• Involved in a wide range of customer projects from the PoC development stage by providing functions / performance
improvements / new additions and flexible licenses for ZIA MOVE, ZIA SLAM, ZIA ISP, etc.
• Expect increase in license revenue due to full-scale mass production ofcustomer products from the fiscal year ending March 2025
Robotics sales (Million Yen)

1,199
20

⚫ Professional service
Provide professional services that meet the requirements of a wide range ofcustomer projects in addition to contracted development for Yamaha Motor

Product/Module

IP core license

Professional service

Other

767

⚫ Products / Modules

587

Provide products that contribute to customer product development andproductivity improvement (from the fiscal year ending March 2022)• Develop and sell high-performance camera system products (modules)
that are indispensable for autonomous driving robots including
external sales of the results of collaboration with Yamaha Motor• Collaborative robot market development with Cambrian vision system* Source: IT Navigator 2021 Edition, Nomura Research Institute

487
374
14

166
13

145

8
0
Mar-21© Digital Media Professionals Inc.

262

17

431

19

387

315

15

346
316

131

35
63

46

84

109

141

Mar-22Mar-23Mar-24432
230
Mar-25Mar-2628

Amusement market and related business outlook• In fiscal March 2022, the amusement market will expand due to demand for replacement of old regulation machines with newones with a deadline of January 2022. Sales of RS1 image processors for this market are expected to exceed the initial plan
which factored in the impact of inventory retention in distribution channels, due to the acquisition of the large-scale orders.
• Full-scale expansion of adoption in existing customer models and acquisition of new customers are expected in fiscal March2023 (confirmed)• While keeping a close eye on market volatility, we will continue to aim to expand our market share and enter new customers
in market segments where we can demonstrate the superiority of our unique 2D/3D integrated chips
RS1 sales (Million Yen)
1,500

1,500

TargetTargetMar-23Mar-24

1,150
840
646

ActualMar-21© Digital Media Professionals Inc.

Initial Plan

Estimate

Mar-2229

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.
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-2630

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.

31

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

Assembly32

Topic for strengthening competitiveness

ZIATM Showcase
Released ZIA™ Showcase, demonstration of the latest edge AI recognition model and benchmark platform- Realtime evaluation and verification of the optimum AI recognition model and hardware combination using customers’ own data set■ Features of ZIA™ Showcase• Real-time inference benchmarking using AI ​recognition model andhardware selected by the customer, displaying inference results,
performance, and power consumption• Consist of a front-end (web page) where a user selects an AI
recognition model and hardware, and uploads the data, a server, andbenchmarking hardware connected to the server.
• Fair benchmark of hardware■ Supporting AI recognition models and hardware• Started from ZIA™ SAFE, DMP's proprietary AI platform for safe
driving assistance, and the various AI recognition models that makeup ZIA™ SAFE. Will be expanded to the robotics field soon.
• Hardware Qualcomm® Robotics RB3
 NVIDIA® Jetson AGX Xavier™
 NVIDIA® Jetson Xavier™ NX
 DMP ZIA™ C3 (DMP Xilinx FPGA module)© Digital Media Professionals Inc.

33

Topic for strengthening competitiveness

ZIATM MOVE
Developed "ZIA™ MOVE", integrated software platform for automatic and autonomous driving of robotic vehicles- Contribute to the early development of customers' high-precision and low-cost unmanned mobile robots and low-speed vehicles■ ZIATM MOVE Functions - Equipped with the functions required for automatic and autonomous driving
Ideal for low-speed autonomous driving applications in indoor areas such as warehouses, factories, and offices, or on
private property such as farms, where no map information is available in advancea) Sensing function: Grasp the situation around the vehicle by sensors such as cameras and LiDARb) Perception & self localization function: Generate a map while performing self localization with the standard ZIATM SLAM, using sensor
information, and detect obstacles, estimate distance, and recognize track, using AI recognition technologyc) Judgment function: Motion planning, path generation, and obstacles avoidance of the vehicled) Operation functions: Steering, Acceleration, Braking■ Features of ZIATM MOVE
• Precision and performance can be adjusted according to applications• Fusion of multiple sensors is possible (camera, LiDAR, IMU, etc.)• Ensure high reliability by integrating proven AI recognition technology
for safe driving assistance• High versatility and individual optimization according to customer
requirements through ROS2-based module architecture• Autonomous driving is possible without prior map information• Compatible with various hardware including GPUs, CPUs, and
FPGAs© Digital Media Professionals Inc.

34

Topic for strengthening competitivenessWire-detecting AI recognition model (ZIATM Wire)
Developed wire-detecting AI recognition model for drones- Prevent breakdowns of drones and autonomous mobile robots by detecting thin wires such as power lines and fences■ Features of wire-detecting AI recognition model and future plans• Since it is costly to collect a large amount of training image data, DMP used the Data Augmentation method to generate
images, used them for training data, and realized a highly accurate AI recognition model• Strive to promote the spread of the AI recognition model for wire detection as a solution for customers who develop drones
and autonomous mobile robots• Work on the further improvement of the functionality of
the AI recognition model based on feedback from customers■ Application to other AI recognition model• Developing a wide variety of AI recognition models byapplying Data Augmentation including the Generative
Adversarial Network (GAN) to the creation of image data forlearning• Develop and offer high-quality AI recognition models byleveraging the Data Augmentation techniques including
GAN according to various customer applications and theirrequirements

Example of wire detection using the AI recognition model (shown in red)

© Digital Media Professionals Inc.

35

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 SAFE

ZIA MOVEZIA SLAM

AI platformer
Standards body

Dashcam operation
management,
Insurance services, etc.

RaaS

SIer, Service provider

Robotics as a Service

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

* XaaS: Abbreviation for X as a Service. Providing a variety of things as a service (through the cloud)© Digital Media Professionals Inc.

36

Business performance target• Fiscal year ending March 2022
Net sales are expected to increase due to business expansion in the fields of safe driving assistance and robotics as well
as recovery in the amusement business and customer development investment, but operating income is expected to bein the red due to personnel investment related to strengthening the development system for sustainable growth.

• Fiscal year ending March 2024
Targeting net sales of 2,500 million yen and operating income of 200 million yen through expansion of
focused businesses.

• Fiscal year ending March 2026
Targeting sales of 1,600 million yen or more, excluding the amusement business and aiming to increase sales
further through horizontal development of the XaaS business.
(Million Yen)

March 2021
(Actual)March 2022
(Original Forecast)March 2023
(Target)March 2024
(Target)CAGR(21/3-24/3)

Safe driving assistance

49

183

230

289

81%

Robotics

166

374

487

587

52%

Amusement

646

840

1,500

1,500

32％

Net sales*

1,009

1,500

2,250

2,500

35%

Operating income

▲425

▲250

50

200

Ordinary Income

▲361

▲250

50

200

* Net sales includes sales in areas other than the three main fields (safe driving assistance, robotics, and amusement), such as GPU IP core licenses for digital equipment such as digital cameras and OA equipment.

© Digital Media Professionals Inc.

37

Risk information© Digital Media Professionals Inc.

38

Risk information
Item

Major risks

Probability/
Timing ofactualization

ImpactCountermeasures

Technology
obsolescence andR&D failures

Graphics processing and AI technologies are evolving at
a very fast pace, and there is a risk that we would fallbehind. There is also a risk that our research anddevelopment may be delayed or aborted.

Medium/Uncertain

Large

We will keep a close eye on technological trends and proactively promotetechnology development. In addition, we will strive to secure excellent engineers
necessary for technology development.

Customers’ market
trendsSince the Company's revenue is partly linked to thenumber of shipments of amusement machines, in-vehicle
products, and other products in which our products areembedded by customers, there is a risk that revenue
would decrease in the event of sluggish sales ofcustomers’ products or a decrease in the number of
shipments due to changes in laws and regulations.

Low-High/
Uncertain

Large

We will aggressively develop new markets and new products by gathering
information from customers and external organizations. Although we are unable
to deal with laws and regulations on our own, we will work closely with ourchannels and end customers to determine the degree of impact on our businessperformance and take actions such as making disclosures as necessary.

Securing anddeveloping humanresources

Securing excellent human resources is a prerequisite forour future growth. However, securing those for AI andother advanced technologies is becoming increasingly
difficult. If we are unable to secure talents, there is a riskthat our business growth would be restricted.

Medium/Medium-Long
term

Large

We are making efforts to attract human resources by providing flexible work
systems such as the introduction of a discretionary work system and attractive
compensation systems such as the stock compensation system.

Spread of COVID19 and otherinfections

Since we are composed of a relatively small number ofprofessional employees, there is a risk that thecontinuation of business activities may become difficult in
the event that an infectious disease such as COVID-19
spreads among our officers and employees. In addition,
there is a risk that revenue would be affected if theamusement machine market slows down due to thedeclaration of a state of emergency and the like.

Low/
Short-Medium
term

MediumIn addition to expanding the scope of telework (working form home) to all
employees, we are working to reduce the risk of infectious diseases bythoroughly preventing infection when at the office, using web conferencing, andsuspending unnecessary outings, business trips, and meetings. As of the date ofsubmission of this document, there has been no infection of the COVID-19
among domestic executives and employees.

Note) For other risks, please refer to "Risk Factors" on our website.
© Digital Media Professionals Inc.

39

Handling of this material• 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 areengaged. As such, actual results may differ materially from those anticipated.
• The purpose of this document is to provide information for the purpose ofunderstanding our company and is not to solicit investment in securities issued
by our company. Please refrain from making any investment decisions based
entirely on this document.
• The latest status including the progress of "Business Plan and Growth
Potential" is disclosed after the announcement of full-year financial results.
The next disclosure is scheduled to be made after the announcement offinancial results for the fiscal year ending March 31, 2022.

© Digital Media Professionals Inc.

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Supplementary material© Digital Media Professionals Inc.

41

Group Business Description
Business

Description

Major Customers

IP Core*1 License
Business

Development and license offer of hardware IP (logic design data etc.) and software IP (mainly hardware control
drivers and supporting tools for contents creation) necessary for drawing detailed images and artificial
intelligence*2 (AI) such as deep learning*3a) License fee: Compensation through offering IP core license in the process of developing products such ashome appliances by customersb) Recurring revenue
・Running royalty: Compensation received according to the number of products incorporating IP core shipped bycustomers
・Subscription fee: Compensation received from customers based on the actual use of our cloud services (PV:number of page views)c) Maintenance and service fee: Revenue from maintenance of IP based on maintenance contract, etc.

Semiconductor manufacturer/
Manufacturer of final product withembedded semiconductor

・Development, manufacturing (outsourced) and sales of graphics LSI*4 (SoC*5) mainly for amusement equipment
・Development, manufacturing (outsourced) and sales of AI LSI (FPGA*6) for AI equipment
・Sales of vision system (object detection by camera) for collaborative robot*7, otherTrading company/SIer
Manufacturer of final product withembedded Semiconductor

Provision of design service of studying and optimizing the entire SoC system by integrating various IP cores of theCompany, software service of developing and optimizing algorithm based on GPU*8/vision /AI technology
cultivated through development of in-house products, etc.

Manufacturer of final product withembedded semiconductor

Product Business

Professional
Service Business*1: Partial circuit modules within an LSI, designed for a specific function (e.g. graphics IP core). IP stands for Intellectual Property.
*2: Software and system that enable computers to make human-like perceptions and judgments such as computer programs that understand and judge sentences, images, conversations,sounds, etc.
*3: A type of machine learning method that realizes artificial intelligence by utilizing human brain imitated neural network mechanism, which is being commercialized in the field of image
recognition*4: Large-scale integrated circuits composed of silicon wafers (materials with properties intermediate between conductors and insulators used in the manufacture of semiconductor
products). LSI stands for Large Scale Integration and is also called "semiconductor".
*5: Integrated circuit (design method) that integrates a series of functions (systems) required on one semiconductor chip. SoC stands for System on a Chip.
*6: Integrated circuit that allows buyers or designers to set and change the configuration after manufacturing. FPGA stands for Field Programmable Gate Array*7: Robot that can works together with people without safety fences*8: Arithmetic unit or processor specialized in real-time image processing represented by computer games. GPU stands for Graphics Processing Unit. By utilizing its better performance inparallel computing performance than CPU, technologies called GPGPU (General-Purpose computing on GPU) that apply its computing resources to purposes other than image
processing are applied to the AI​​/deep learning field.

© Digital Media Professionals Inc.

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DMP’s technology evolution

Technology Width⚫ Founded in 2002 as a university-launched venture company to show the world the high level2021
of Japan's CG processor technology. As one of the world's leading graphics IP vendors,
ZIA SLAM
DMP has developed and provided power-saving, compact, and high graphics performance IP.
ZIA MOVE2020
ZIA WIRE⚫ DMP has developed high performance graphics LSI incorporating its proprietary graphics IP2019 ZIA Cloud ZIA Showcase
SAFE
ZIA SAFE
technology.
ZIA
ISP
2018
AI
⚫ In 2016, based on GPU technologies accumulated since its founding, DMP developed2017 ZIA C3
ZIA™, a platform consisting of software, hardware, and services that integrates
2016 ZIA DV700
knowledge of AI and deep learning and entered the AI field.
ZIA Classifier
Now expanding AI portfolio.
2015
VF2

2008
NV7
2009
2006

2014

2010
Adopted forNintendo 3DS

Graphics LSI

2017
RS1

2016
M3000

Graphics IP

PICA® Graphics IP Core
received the Excellence in IP Prizeof 9th LSI IP Design Award in 2007

2002
Founded inJuly 20022010
Listed on the
Mothers of TSE
in June 2011

2020
Business and capital alliancewith UKC Holdings (currently
Restar Holdings) in 2014

© Digital Media Professionals Inc.

Business and capital Capital and businessalliance with Yamaha alliance with
Motor in 2019
Cambrian Inc in 2021

43

Performance review• From GPU IP business mainly for game consoles at the time of listing, through LSI development for amusement, focusing on AI businessin recent years• Performance deteriorated in the fiscal year ended March 2021 due to the impacts of COVID-19 such as the slump in the amusement
machine market and restraint and postponement of AI development investment by some customers

Business performance*(¥M)

Net sales

1,044

Ordinary income
973
733

714
355

302

1,328
1,086

1,009

694

464
66

33

85

-36
-365
Mar-12Mar-13GPU IP businesscentered on game
consolesMar-14-265
Mar-15-193

Mar-16-262
Mar-17

Recorded up-front development
cost for next-generation
amusement LSI-361
Mar-18Mar-19Mar-20Mar-21

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

© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2022

Business Forecast (at the end of the first quarter)
Q1 sales and large-scale order (to be delivered to the customer from the second through thefourth quarter) for the "RS1" image processing semiconductor for the amusement market
totals 1,150 million yen, which exceeds the initial RS1 sales forecast of 840 million yen.
FY 03/2021(Actual)(Unit: million yen)

FY 03/2022(Forecast)

Net sales

1,009

1,500

Operating income

-425

-250

Ordinary income

-361

-250

Net income attributable toowners of parent

-364

-252

⚫ Q1 net sales grew mainly due to the activation of the Robotics field, while profit (loss) level was almost the same as the same period
last year.

⚫ From Q2 onward, IP licenses and professional services for new customers/projects are expected to be active in the safety driving
assistance field. In the robotics field, an increase in business projects is expected to continue in the PoC and practical use stages.
⚫ There is no change to the full-year consolidated business forecast announced on May 14, 2021 at this moment. The impact of thelarge-scale order for RS1 on the consolidated business forecast will be closely examined, and if there is anything that needs to bedisclosed, it will be announced promptly.
© Digital Media Professionals Inc.

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