(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, 2020 (Japanese GAAP)
February 9, 2021
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, 2021
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, 2020 (April 1, 2020 through December 31, 2020)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net income attributable toowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
9 months ended Dec 30, 2020
834
△294
△242
△244
－
－
－
－
9 months ended Dec 30, 2019
－
－
－
－
－
－
－
－
Reference) Comprehensive income: △244 million yen as of Dec 31, 2020; - million yen as of Dec 31, 2019
Net sales

Operating income

Net income per shareyen△77.75－9 months ended Dec 30, 2020
9 months ended Dec 30, 2019

Ordinary income

Net income per sharedilutedyen－－

Since the quarterly consolidated financial statements have been prepared from the first quarter of the fiscal year ending March 2021,
the figures for the first quarter of the fiscal year ended March 2020 and the rate of change year on year are not stated.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of December 31, 2020
3,704
3,367
As of March 31, 2020－－
Reference) Shareholders' equity: 3,367 million yen as of Dec 31, 2020; - million yen as of March 31, 2020

%
90.9
－

Since the quarterly consolidated financial statements have been prepared since the first quarter of the fiscal year ending March 2021,
the figures as of March 31, 2020 are not stated.

2. Cash dividends
Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
Year ended March 2020
0.00
0.00
Year ending March 2021
0.00
Year ending March 2021 (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, 2021 (April 1, 2020 through March 31, 2021)
Net Sales

Operating income% Millions of yen
Full year
1,500
△150
Note) Revision of forecasts during the period: None
Millions of yen(Percentages indicate year-on-year changes.)
Net income attributable to Net income
Ordinary income
owners of parent
per share% Millions of yen% Millions of yen
%
Yen
△100
△100
△31.82

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, 2020

3,152,400 shares

As of March 31, 2020

3,131,700 shares

As of March 31, 2020

1,069 shares(2) Number of treasury shares at the end of the period
As of Dec 31, 2020

2,889 shares(3) Average number of shares issued during the period
9 months ended Dec 31, 2020

3,140,149 shares

9 months ended Dec 31, 2019

3,065,590 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."

Qualitative information on financial results(1) Operating results
Since the Company has prepared quarterly consolidated financial statements from the first quarter of the current
consolidated fiscal year, it does not provide a year-on-year comparison of operating results and financial position.

During the nine months of the current fiscal year, the Japanese economy was in a difficult situation in terms of corporate
earnings and capital investment due to the impact of the new coronavirus infection. The global economy was also in asevere situation due to the impact of the global outbreak of the new coronavirus infection. In Japan, a state of
emergency was declared in 11 prefectures in January and lockdowns have been imposed in major overseas countries,
which raises the risk of a downturn in the economy. As for the future, it is necessary to take extremely difficult steps togradually raise the level of economic activity while taking measures to prevent the spread of infection.
In the semiconductor industry to which our group belongs, shortages in the supply of semiconductors are becoming
more significant due to insufficient production capacity at 8-inch foundries and strong stay-at-home demand. In themedium term as well, demand is expected to grow for IoT where all things are connected to the Internet, artificial
intelligence (AI), big data, next-generation high-speed communication standards, and automatic driving.
In the AI/visual computing field, which is our group's business domain, the acceleration of innovation and the increasingrole of AI in solving social issues, including current difficulties, and in realizing a safe and secure society are expected.
In such an environment, our group will strive to become the world's leading "AI Computing Company" by contributing
to solving social issues through providing AI solutions that leverage the strength of having a consistent development
system of AI algorithms, software and hardware.
As concrete measures and results during the third quarter are as follows.
1) Robotics field･Participation in the NVIDIA Partner Network, a partner program of NVIDIA Corporation (NVIDIA), as a professional
services partner
By proactively conducting marketing activities through NVIDIA's ecosystem, we are building close relationships withmany companies that are working on the social implementation of automation and autonomy in the field of robotics, inorder to further accelerate and strengthen AI business in this field.
･Launch of ZIA™ SLAMZIA™ SLAM is a software product based on Visual SLAM (Simultaneous Localization and Mapping) technology thatsimultaneously performs self-localization and environmental mapping using camera images and sensor information.
The software is based on Visual SLAM technology using a camera, which is less expensive than SLAM technology
using LiDAR (an abbreviation for Light Detection and Ranging, a type of sensor that uses laser light), and operates
with high accuracy and speed, thus contributes to higher performance and lower costs of equipment. As a result, it cancontribute to the development though mass production of customers' applications.
･In response to the above and other initiatives, we have received inquiries from customers, including orders for Proofof Concept (PoC). We believe that this, combined with the growth potential of the robotic vehicle and collaborative robot
markets, will contribute to future business growth.

2) safe driving assistance field･Provision of safe driving assistance service by seamless linkage of ZIA™ SAFE and ZIA™ Cloud SAFE
By linking ZIA™ SAFE, which has a proven track record as a platform for developing safe driving assistance system,
and ZIA™ Cloud SAFE, a SaaS-type safe driving assistance cloud service using Amazon Web Services (AWS), we-1-

are providing the industry's first platform for building safe driving assistance system from edge AI to the cloud.
･Adoption by JVCKENWOODZIA™ SAFE has been adopted by JVCKENWOOD Corporation for its dashcams for telematics service with
communication capabilities (Model number: STZ-DR00) and is utilized for functions such as driving assistance anddriver monitoring.
･Launch of recurring business
As for the recurring business, we started recording royalty income in the second quarter and subscription income in the
fourth quarter. In this field, we are continuing to cultivate projects with existing customers and develop new customers.
In this area, we are continuing to cultivate projects with existing customers and develop new customers for expanding
the overall revenue of the business including the stock businesses such as royalty model and subscription model.

3) Collaboration with Yamaha Motor, a business and capital partner
We have continued to work on AI implementation in line with each product roadmap across various product lines forland, sea and air.

4) Collaborations and alliances for business expansion
We have co-developed a new virtual AI sports coach application with GrAI Matter Labs, a French pioneer in ultra-low
latency computing inspired by the human brain, and demonstrated it at docomo Open House 2021, held online February
4-7, 2021. In the future, we will work together to realize a new class of virtual assistants using real-time posture andmotion estimation and develop business in various applications such as sports analysis, life support, industrial
automation, and surveillance.

5) NEDO businesses
As businesses regarding the New Energy and Industrial Technology Development Organization (NEDO) following theprevious fiscal year, we not only have continued to operate AI edge contests in the commissioned project of "Survey ofissues for finding ideas regarding Technology Development for AI Chip and Next generation Computing for Highefficiency and High-speed Processing" but also have worked on subsidized projects of the development of "AI Platform
for Artificial Intelligence (AI): An Energy Efficient AI Engine" and "Research and development of AI hardware for AI
pathology imaging system for cancer companion diagnostics."

In the robotics field, according to data from research companies and other sources, both the market for robotic vehicles
and that of collaborative robots are expected to grow at an annual rate of about 40% from the perspectives of alleviating
the shortage of manpower in a wide range of fields such as manufacturing, logistics, agriculture and daily life, improving
productivity and quality of life, and preventing COVID-19 infection. In the safe driving assistance field, demand for realtime detection of dangerous driving events and post-event safe driving education is growing, and we expect the market
for communication-type dashcams with AI functions to expand steadily.
We will strive to achieve medium-term growth and contribute to solving social issues by accelerating businessdevelopment and monetization in the above-mentioned fields where market growth is expected and where ourtechnologies and strengths fit.

Regarding the business results for the nine months of the current fiscal year, mass production shipments of the image
processing semiconductor "RS1" continued in the LSI product business. In the IP core license business, we acquired-2-new AI-related licenses and recorded running royalties related to AI-based safe driving assistance system, despite adecline in running royalties for conventional digital equipment. In the professional service business, in addition to thecontracted revenue in NEDO's AI edge contest operation, we got orders for contracted development services for robotic
vehicles.

As a result, for the current consolidated fiscal year, we recorded net sales of 834 million yen, operating loss of 294
million yen, ordinary loss of 242 million yen mainly due to the recording of 53 million yen in subsidy income from NEDO
as non-operating income, and net loss attributable to owners of parent of 244 million yen.

Although our group has a single business segment, each business result is shown below in order to show businesstrends.
1) IP core license businessNet sales were 101 million yen attributable to new licenses of GPU and AI, running royalties, and revenue frommaintenance support.
2) LSI product businessNet sales were 600 million yen attributable to the sales of the "RS1" for mass production and AI FPGA module "ZIA™
C3."3) Professional service businessNet sales were 132 million yen due to the booking of AI-related contracted development sales and NEDO contracted
development sales.

(2) Financial position
Overview of assets, liabilities and net assets
Current assets at the end of the third quarter of the current consolidated fiscal year were 2,946 million yen, mainly
consisting of cash and deposits of 2,005 million yen, securities of 442 million yen and accounts receivable of 328 million
yen. Fixed assets amounted to 757 million yen, mainly consisting of software of 118 million yen and investment
securities of 500 million yen.
Current liabilities and non-current liabilities at the end of the third quarter of the current consolidated fiscal year totaled
337 million yen, mainly consisting of accounts payable of 238 million yen.
Total net assets at the end of the third quarter of the current consolidated fiscal year were 3,367 million yen, mainly
consisting of capital stock of 1,838 million yen, capital surplus of 1,858 million yen and retained earnings of -319 million
yen.
As a result, the equity ratio was 90.9%.

(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, 2021 announced
on November 10, 2020.
Actual performance may differ significantly from the forecast figures due to various factors.

-3-

2. Consolidated financial statements(1) Consolidated balance sheets(Yen thousand)Current Q3 period(As of Dec 31, 2020)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
Finished goods
Work in process
Raw materials and supplies
Income taxes receivable
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
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

2,005,183
328,898442,848
4,082
5,217
48,477
11,673
100,1902,946,574
41,951
118,248
25
118,248
500,380
97,174
597,554757,753
3,704,327

238,372
6,261
73,821
318,456
1,508
17,09418,602
337,058

1,838,882
1,858,093-3,199,992-1,525
3,375,457-8,087-102-8,1893,367,268
3,704,327-4-

(2) Consolidated statements of income
Consolidated quarterly statements of income(Yen thousand)Current Q3 period (YTD)(From Apr 1, 2020
To Dec 31, 2020)
Net sales

834,239

Cost of sales

567,840

Gross profit

266,398

Selling, general and administrative expenses

560,777

Operating loss

-294,379

Non-operating income
Interest income

1,739

Subsidy income

53,500Miscellaneous income

4

Total non-operating income

55,244Non-operating expenses
Foreign exchange losses

2,882

Share issuance costs

584

Miscellaneous loss

0

Total non-operating expenses

3,467

Ordinary loss

-242,602

Loss before income taxes-242,602

Income taxes - current

1,717

Income taxes - deferred-167

Total income taxes

1,550

Loss

-244,152

Loss attributable to owners of parent-244,152

Consolidated quarterly statements of comprehensive income(Yen thousand)Current Q3 period (YTD)(From Apr 1, 2020
To Dec 31, 2020)
Loss-244,152

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

-520
-102

Total other comprehensive income-622

Comprehensive income-244,774

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-244,774--5-