3rd Quarter ended December 31, 2020

Financial Results Supplementary Information

Digital Media Professionals Inc.
February 9, 2021
The views and forecasts that appear in these materials represent determinations made by the Company at the time the materials were created.
The accuracy of the information therein is not guaranteed.
Please be aware of the possibility that actual performance and results may differ considerably due to a variety of factors.
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Table of contentsGroup Business Description・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・3

3rd Quarter ended December 31, 2020 Results Highlights
P/L・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4
Net Sales by Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5

B/S・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6
3rd Quarter ended December 31, 2020 Topics・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7
Fiscal Year Ending March 31, 2021 Business Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8

Blueprint for Future Growth・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
Reference) Major Activities (Fiscal Year Ending March 31, 2021)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・10

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2

Group Business Description
Business
IP Core*1 License
Business

LSI Product Business

Description

Major Customers

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 as home appliances bycustomersb) Running royalty/Subscription fee
Compensation received according to the number of products incorporating IP core shipped by customers /according to the number of times of access to and analysis with DMP’s software on the cloud servicec) Maintenance and service fee: Revenue from maintenance of IP based on maintenance contract, etc.

Semiconductor manufacturer/
Manufacturer of final productwith embedded
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

Professional Service
Business

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*7/vision /AI technology
cultivated through development of in-house products, etc.

Semiconductor trading
company/Manufacturer offinal product with embedded
semiconductor
Manufacturer of final productwith embedded
semiconductor*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: 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.
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33rd Quarter ended December 31, 2020

Results Highlights: P/L
Shifted to a consolidated accounting system due to the start of business at the subsidiary in Vietnam(unable to simply compare figures with those in the same period last year)(However, sales of the subsidiary in Vietnam are currently design service income only to the headquarters with no external sales)(Unit: million yen)

3rd Quarter ended
Dec. 31, 2019(non-consolidated)

3rd Quarter ended
Dec. 31, 2020
(consolidated)

Net sales

661

834

OperatingincomeOrdinary
income

△159

△294

△166

△242

Net income

△167

△244

⚫ Sales of IP license business and professional service business fell below the previous year's results due to a decrease inexisting running royalties and a decrease in development investment by some customers, respectively. Shipment of graphic
processor "RS1" for volume production exceeded the previous year, resulting in an increase in overall sales⚫ Incomes deteriorated due to the business mix (increased sales ratio in LSI product business)⚫ Non-operating balance improved due to a fall-off of share issuance cost recorded as non-operating expenses in the same periodof the previous year on one hand and the subsidy income from NEDO recorded as non-operating income on the other hand.
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3rd Quarter ended December 31, 2020

Results Highlights: Net Sales by Business
IP core license business

Sales¥101 million

Same period last year
¥114 million(non-consolidated)●Decrease in running royalties from digital equipment centered on digital still camera●Impacts of temporary restraint and suspension of development investment / project by some customers●Won new/upgraded AI licenses for robotics, etc., Started recording running royalty for AI-based safe driving assistance

LSI product business

Sales¥600 million

Same period last year
¥333 million(non-consolidated)●Recorded sales of “RS1” for volume production and “ZIATM C3” AI FPGA modules

Professional services business

Sales¥132 million

Same period last year
¥214 million(non-consolidated)●Recorded commissioned revenue from NEDO’s “AI Edge Contest” and sales of AI-related
contract development service for safe driving support and robotic vehicles●Impacts of temporary restraint and suspension of development investment / project by some customers
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3rd Quarter ended December 31, 2020

Results Highlights: B/S
Equity ratio remains high at 90.9%
Capital stock and capital surplus increased ¥34M each as a result of issuance of RS to directors and employees in 2nd Quarter(Unit: million yen)

End of March 2020
(Non-consolidated)

End of Dec. 2020
(Consolidated)

Major breakdown
Cash & deposits 2,005, Securities 442
Accounts receivable - trade 328

Current assets

3,077

2,946

Non-current assets

763

757

3,841

3,704

Current liabilities

279

318

Accounts payable - trade 238

Non-current liabilities

18

18

Asset retirement obligation 17

Total liabilities

298

337

Total net assets

3,543

3,367

Total liabilities andnet assets

3,841

3,704

Total assets

Investment securities 500
Software 118

Capital stock 1,838, Capital surplus 1,858
Retained earnings -319

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3rd Quarter ended December 31, 2020

Topics•Has continued implementing AI functions in products across land, sea and air in line with the product roadmap of
Yamaha Motor, a business and capital partner•Strengthen and accelerate initiatives such as product / service development, customer base expansion, and technicalpartnership in focus domains

Robotics

Safe driving assistance・Partnership with GrAI Matter Labs (GML) in France

・Joined "NVIDIA Partner Network" as aprofessional service partner
Accelerate and strengthen business in the
robotics field by expanding customer base through
NVIDIA’s ecosystem and contributing to early
development/launch of customers’ robotics
products

・Started offering ZIATM SLAMHigh accurate visual SLAM
using a lower cost camera
than LiDAR contributes to higher performance andcost reduction of customers’ products・Above measures are generating morebusinesses including PoC (Proof of Concept)
・Continue to strengthen solution development andprovision for robotic vehicles and collaborative
robot markets with high growth rate

Others・Offer safe driving assistance service combining
ZIATM SAFE and ZIATM Cloud SAFE
Offer the industry's first platform for realizing safe
driving assistance system covering from edge AI tothe cloud by combining ZIATM SAFE with a proventrack record as safe driving support systemdevelopment platform and ZIATM Cloud SAFE, a
SaaS-type safe driving support cloud service using
Amazon Web Services (AWS)・JVCKENWOOD has adopted ZIATM SAFE
Adopted by JVCKENWOOD for its dashcams fortelematics service with communication capabilities(Model number: STZ-DR00)
・Continue to cultivate existing customer projects anddevelop new customers, and aim to expand the profitof the entire business including subscription-basedmodel and royalty model

Co-developed a novel
virtual AI Sports Coaching
Application with GML, apioneer of brain-inspired
ultra-low latency computing
and showcased it at docomo Open House 2021 held onlinefrom February 4 to 7, 2021. DMP and GML will strive torealize virtual AI assistants using real-time pose estimation
analysis and develop business for various applications
such as sports analysis, assisted living, industrial
automation, and surveillance

・Edge AI processor IP core “ZIA™ DV720” has been
adopted by amnimo, a subsidiary of Yokogawa
Electric, for its industrial IoT devices
Achieve ultra-low power consumption, low cost, and high
AI inference processing performance for industrial IoT
devices required to operate for a long time in harshenvironments. Continue to develop business in theindustrial IoT market with steady growth rate

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Fiscal Year Ending March 31, 2021

Business Forecast
Short-term negative impacts by COVID-19, Strengthening efforts to achieve mid-term growth
FY 03/2020(Actual)(Non-consolidated)

3rd Quarter FY
03/2021 (Actual)(Consolidated)

FY 03/2021(Forecast)(Consolidated)

1,328

834

1,500

Operating income

82

△294

△ 150

Ordinary income

85

△242

△ 100

Net income

65

△244

△ 100

(Unit: million yen)

Net sales⚫ The full-year consolidated earnings forecast for the fiscal year ending March 2021 remains unchanged from the forecast
announced on November 10, 2020.
⚫ Achieve medium-term growth and contribute to solving social issues by aiming for business development and monetization infields where market growth can be expected and DMP’s technologies and strengths fit➢ Robotics field: The markets of robotic vehicle and collaborative robot have huge growth potential of about 40% per year from the perspectives ofsolving labor shortages, improving productivity and quality of life in a wide range of fields such as manufacturing, logistics, agriculture and daily
life, and preventing new coronavirus infections➢ Safe driving assistance field: The market of dashcam with communication capabilities is expanding steadily backed by the growing demand forreal-time detection of dangerous driving events and post-education for safe driving
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Blueprint for Future Growth
Evolve into the world's leading "AI Computing Company"
Integrated development of AI algorithms, software and hardware
Expansion into the growing IoT/AI field
Development of ZIA platform
•
•
•
•
•

AI

Processor IP
SoftwareModulesStrengthening of ecosystem with partners
Overseas expansion

AI solutions for Mobility / Industry

Stable management foundation in theamusement market where we can win
Muti-platform
Aiming for top share in amusement SoC

Phase 1

• Autonomous driving• Robotics, Robotic vehicle• Safety / DMS

Expansion of the SoC / Module Business• High value-added modules• High-volume AI products

Current position
Phase 2Phase 3Copyright (C) Digital Media Professionals Inc. All Rights Reserved.

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Reference) Major Activities (Fiscal Year Ending March 31, 2021)
Each item is linked to PR/IR news (in Japanese or English) of DMP’s website.
Date ofAnnouncement/Event

Details

April 1, 2020

Establishment and business start of subsidiary in Vietnam (Japanese)

May 11, 2020

July 1, 2020

Hold 3rd AI Edge Contest with METI, NEDO, and SIGNATE (Japanese)
Prophesee, DMP partner to accelerate development of embedded machine vision and artificial intelligence (AI) applications using EventBased Vision approach
DMP, Silex Technology, and PALTEK jointly developed vehicle AI evaluation kit to support development of safe, remote, and automated AI
solutions (Japanese)
Hold 4th AI Edge Contest with METI, NEDO, and SIGNATE (Japanese)

July 1, 2020

Basemark and DMP Partner to Develop Smart Mirrors for commercial vehicles

July 13, 2020

DMP releases IP Core "ZIA™ ISP"

July 13, 2020

DMP releases IP Core "ZIA™ DV740"

July 15, 2020

Website renewal

September 7, 2020

DMP's edge AI image recognition software supports Ryosan's demonstration of collaborative robot at TSUTAYA ELECTRICS + (PLUS)

October 28, 2020

DMP's edge AI processor IP core "ZIA™ DV720" has been adopted for amnimo's industrial IoT devices

November 10, 2020

DMP launches Amazon Web Services based safe driving support cloud service "ZIA ™ Cloud SAFE" (Japanese)

November 30, 2020

DMP joins NVIDIA Partner Network to accelerate AI business for automation and autonomy in the robotics field

January 18, 2021

DMP releases SLAM Software "ZIA™ SLAM" (Japanese)

February 1, 2021

GML and DMP Partner to Showcase Virtual AI Sports Coach at docomo Open House

February 9, 2021

DMP’s AI platform "ZIA™ SAFE" for safe driving field has been adopted by JVCKENWOOD for its dashcams (Japanese)

May 14, 2020
June 8, 2020

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<Inquiries>
Digital Media Professionals Inc. Corporate Planning Department
Tel. +81-3-6454-0450
URL: https://www.dmprof.com/en/ir/

Forward-looking statements contained within this document are based on currently available
information and involve risks and uncertainties, including macroeconomic conditions andtrends in the industries in which we are engaged. As such, actual results may differ
materially from those anticipated.

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