(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 Three Months ended June 30, 2022 (Japanese GAAP)
August 9, 2022
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: August 10, 2022
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 three months ended June 30, 2022 (April 1, 2022 through June 30, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net income attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
3 months ended June 30, 2022
387
54.7
△89
△83
△84
－
－
－
3 months ended June 30, 2021
250
9.2
△95
－
△95
－
△96
－
Reference) Comprehensive income: △79 million yen as of June 30, 2022; △95 million yen as of June 30, 2021

Net income per shareyen△26.79△30.603 months ended June 30, 2022
3 months ended June 30, 2021

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

Net assets

Millions of yen

Equity ratio

Millions of yen

As of June 30, 2022
3,463
3,015
As of March 31, 2022
3,472
3,095
Reference) Shareholders' equity: 3,015 million yen as of June 30, 2022; 3,095 million yen as of March 31, 2022

%
87.1
89.2

2. Cash dividends
1Q-endyen-

Year ended March 2022
Year ending March 2023

Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
0.00
0.00

0.00
Note) Revision of dividends forecast during the period: None-

Year ending March 2023 (Forecast)

Total

0.00

yen
0.00
0.00

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

Operating income

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

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

Notes:1. Changes in significant subsidiaries during the current consolidated cumulative period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
2. Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies(1) Changes in accounting policies resulting from revisions of accounting standards: None
(2) Changes in accounting policies except (1): None
(3) Changes in accounting estimation: None
(4) Restatement: None
4. Number of shares issued(1) Number of shares issued at the end of the period (including treasury shares)
As of June 30, 2022

3,152,400 shares

As of March 31, 2022

3,152,400 shares

As of March 31, 2022

4,122 shares(2) Number of treasury shares at the end of the period
As of June 30, 2022

5,122 shares(3) Average number of shares issued during the period
3 months ended June 30, 2022

3,147,278 shares

3 months ended June 30, 2021

3,148,921 shares

Note: Explanation regarding the appropriate use of business forecasts and other special notes
The forward-looking statements such as business forecast in this document are based on information currently available to
the Company and on certain assumptions deemed to be reasonable. The Company does not guarantee the achievementof the forecasts. Actual results may differ significantly for a number of reasons.
For the conditions and notes on the use of business forecast, please refer to"1. Qualitative information on quarterly financial results (3) Consolidated financial forecasts and other forward-looking statements."-2-

1. Qualitative information on quarterly financial results(1) Financial position and operating results
During the first quarter ended June 30, 2022, the Japanese economy showed signs of recovery due to efforts to ease
restrictions on activities and revitalize socio-economic activities as the spread of COVID-19 relatively settled down.
Currently, however, there are concerns about the impact on the economy of the rapid increase in the number of new
infections, the continued depreciation of the yen, and rising prices. As for the future, it is essential to take the extremely
difficult task of raising the level of socio-economic activities while taking countermeasures against infection. In the world,
while more active socio-economic activities have been implemented in some areas, recession risks are emerging due
to high raw material and food prices and supply-side constraints caused by the situation in Ukraine, and the prolonged
zero-corona policy in China.
In the semiconductor industry to which our group belongs, although the stay-at-home demand due to the COVID-19
pandemic has peaked out, the continued shortage of semiconductor supplies due to strong demand in various
industries is affecting the production of electronic equipment including automobiles that uses semiconductors. 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 field of AI/visual computing, which is the business domain of our group, the acceleration of innovation and theincreasing roles of AI are expected in solving social and environmental issues, including a decrease in the working
population due to declining birthrate and aging population, COVID-19 pandemic and climate change, and in realizing asafe and secure society.
In this environment, the basic policy of our group's medium-term business plan is to achieve Creating Shared Value(CSV) management that will enhance corporate value by contributing to the resolution of social and environmental
issues and earning revenue and profits at the same time. In the core fields of safe driving assistance (safety) androbotics, we will maximize customer lifetime value (LTV) by providing added value through the development of IP core
license business, product business, and professional service business, based on our integrated development systemfrom algorithms and software to our strength, hardware, throughout the development lifecycle of customer products
and services from the planning stage to mass production.

As for specific initiatives and achievements in our focused fields during the first quarter of the current fiscal year, firstly,in the safe driving assistance (safety) field, we earned recurring revenue from existing projects from the edge to thecloud, as well as new licenses and professional services for new customers and new projects of existing customers. In
addition, we shipped ZIA C3 kits for volume production for peripheral monitoring of commercial vehicles.
In the robotics field, we identified and promoted PoC projects for customers. In the business of vision systems forcooperative robots by Cambrian Inc., a capital and business partner, we made progress in several specific projects
aimed at reducing manpower and improving productivity for end customers, such as introducing systems to productionlines in the automobile industry.
In the amusement field, we continued shipping our image processing semiconductors, RS1, for mass production in
response to the large-scale order, and aimed to expand our share in the market segment where we can demonstrate
the superiority of this unique 2D/3D integrated chip.
In addition, ZIA DV720, high-definition edge AI processor, has been adopted in two new series of TVS REGZA's"REGZA" TVs due to its real-time processing and customizability, and running royalty income is expected from thisfiscal year.
With regard to business results for the current first quarter, in the product business, we continued mass production-3-

shipments of the RS1 image processing semiconductor and shipped ZIA C3 kits for volume production. In the IP core
license business, we recorded recurring revenue in the areas of safe driving assistance and robotics in addition to GPU
running royalty income. In the professional service business, we provided contracted AI/GPU contracted development
services.

As a result, we recorded net sales for the first quarter of the current fiscal year of 387 million yen (up 54.7% from thesame period of the previous year), operating loss of 89 million yen (operating loss of 95 million yen for the same periodof the previous year), ordinary loss of 83 million yen (ordinary loss of 95 million yen for the same period of the previousyear) and net loss attributable to owners of the parent of 84 million yen (net loss of 96 million yen for the same periodof the previous year).

As our group operates in a single segment, segment information is not provided, but a summary of results by businessis as follows.
a) IP core license businessNet sales amounted to 32 million yen (25 million yen in the same period of the previous fiscal year), mainly due to therecording of recurring revenue in the fields of safety and robotics in addition to GPU running royalty income for digitalequipment such as digital still cameras and office automation equipment.
b) Product businessNet sales amounted to 343 million yen (171 million yen in the same period of the previous fiscal year) due to sales frommass production shipments of the RS1 and volume shipments of the ZIA C3 kit for peripheral monitoring of commercial
vehicles.
c) Professional service businessNet sales amounted to 11 million yen (53 million yen in the same period of the previous fiscal year) due to a temporary
decrease in customers’ development projects.

A summary of results by field is as follows.
a) Safety field
Net sales amounted to 26 million yen (3 million yen in the same period of the previous year), mainly due to sales fromvolume shipments of the ZIA C3 kit for peripheral monitoring of commercial vehicles, professional services income, andrecurring income. As for this field, from the fiscal year ending March 31, 2023, the name "safe driving assistance filed"
has been changed to "safety field."b) Robotics field
Net sales amounted to 4 million yen (57 million yen in the same period of the previous fiscal year) due to a temporary
decrease in customers’ development projects in the professional service business, despite the recording of revenue
mainly from the IP core license business.
c) Amusement field
Net sales amounted to 332 million yen (171 million yen in the same period of the previous year), mainly due to themass production shipments of RS1.
d) Other
Net sales amounted to 24 million yen (18 million yen in the same period of the previous fiscal year), mainly due to therecording of GPU running royalty income for digital equipment-4-(2) Financial position(Assets)
Current assets at the end of the first quarter amounted to 2,992 million yen, up 208 million yen from the end of theprevious fiscal year mainly attributable to increases in cash and deposits (up 105 million yen), accounts receivable andcontract assets (up 61 million yen), and raw materials and supplies (up 38 million yen). Noncurrent assets amounted
to 471 million yen, down 216 million yen from the end of the previous fiscal year mainly attributable to decreases ininvestment securities (down 199 million yen) due to redemption and software (down 13 million yen).
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the first quarter amounted to 448 million yen, up 71 million yen
from the end of the previous fiscal year mainly attributable to an increase in accounts payable (up 94 million yen).
(Net assets)
Net assets at the end of the first quarter amounted to 3,015 million yen, down 79 million yen from the end of the previous
fiscal year mainly attributable to a decrease in retained earnings (down 84 million yen).
As a result, the equity ratio was 87.1%.

(3) Consolidated financial forecasts and other forward-looking statements
There is no change to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2023, announced
on May 13, 2022.
In the first quarter of the current fiscal year, net sales grew mainly due to higher sales in the amusement field, and theloss level improved from the same period of the previous fiscal year. A temporary decrease in sales in the professional
service business in the robotics field was factored in at the time of the forecast.
From the second quarter onward, we expect to expand license and professional service revenues in the safety field,
and product and professional service businesses in the robotics field, in addition to the continued volume shipments of"RS1" image processing semiconductors for the amusement market.
Actual performance may differ significantly from the forecast figures due to various factors.

-5-

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

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade and contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

Previous year
(As of Mar 31, 2022)(Yen thousand)Current Q1 period(As of Jun 30, 2022)

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

2,017,828
450,027
300,000
11,4092,618
65,29754,8772,992,058

39,51941,14450,38323,02573,40836,842
23,02559,868507,481
67,727575,209688,137
3,472,189

308,020
62,906
370,926
471,939
3,463,998

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

354,711
5,532
19,07950,708430,031414
17,665
18,079376,706414
17,73018,145448,177

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

1,838,882
1,858,093-681,967-1,615
3,013,392-1,835-381-2,217
3,095,483
3,472,189

-657
3,086
2,428
3,015,821
3,463,998

(2) Consolidated quarterly statements of income and comprehensive income (three months ended June 30, 2022)
Consolidated quarterly statements of income(Yen thousand)Previous Q1 period (YTD)

Current Q1 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Jun 30, 2021)

To Jun 30, 2022)

Net sales

250,518

387,671

Cost of sales

180,933

268,413Gross profit

69,584

119,257

Selling, general and administrative expenses

165,449

208,524

Operating loss

-95,864-89,267

451

399

Foreign exchange gains

-

5,689

Miscellaneous income

162-

Total non-operating income

614

6,089

Non-operating income
Interest income

Non-operating expenses
Foreign exchange losses

542

-

-

548

56

9

Loss on redemption of securities
Miscellaneous loss
Total non-operating expenses

598

557

Ordinary loss

-95,848-83,735

Loss before income taxes-95,848-83,735

572

572

Income taxes - current
Income taxes - deferred-51-

Total income taxes

520

572

Loss

-96,369-84,308

Loss attributable to owners of parent-96,369-84,308

Consolidated quarterly statements of comprehensive income(Yen thousand)Previous Q1 period (YTD)

Current Q1 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Jun 30, 2021)

To Jun 30, 2022)

Loss
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests-7--96,369-84,308

344

1,178

198

3,467

542

4,646

-95,826-79,661-95,826-79,661--(3) Notes to quarterly consolidated financial statements(Notes on going-concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders' equity)
Not applicable(Change in accounting policy)
Not applicable(Segment information, etc.)[Segment information]
The Group's business is comprised of a single segment, the development, manufacture, and sale of IP cores and otherproducts, as well as related operations. Therefore, this information is omitted from this report.

(Significant subsequent events)
Not applicable-8-3. Other(1) Significant events on going-concern assumption
Not applicable(2) Recent quarterly business performance
Fiscal year ended March 31, 2023
(thousand yen)First Quarter
Apr 2022 - Jun 2022

Second Quarter
Jul 2022 - Sep 2022

Third Quarter
Oct 2022 - Dec 2022

Fourth Quarter
Jan 2023 - Mar 2023

Net sales

387,671---

Gross profit

119,257---

Operating loss (-)-89,267---

Ordinary loss (-)-83,735---

Loss (-) before incometaxes-83,735---

Net loss (-)-84,308---

Net loss (-) attributable toowners of the parent-84,308---

Comprehensive income-79,661----26.79 yen

-

-

-

Net income/loss (-) per share

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

Total assets

3,463,998---

Net assets

3,015,821---

Net assets per share958.23 yen

-

-

-

Fiscal year ended March 31, 2022
First Quarter
Apr 2021 - Jun 2021

Second Quarter
Jul 2021 - Sep 2021

Third Quarter
Oct 2021 - Dec 2021

Fourth Quarter
Jan 2022 - Mar 2022

Net sales

250,518

440,014589,060

388,398

Gross profit

69,584

168,322205,938

160,616

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

18,023-34,699

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

18,566-32,193

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

18,895-65,836

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

18,374-65,526

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

18,374-65,526

Comprehensive income-95,826-12,419

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

5.83 yen-20.81 yen(thousand yen)

Net income/loss (-) per share

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

Total assets

3,399,847

3,432,453

3,634,784

3,472,189

Net assets

3,154,649

3,141,872

3,162,500

3,095,483

1,001.85 yen

997.90 yen

1,004.45 yen

983.23 yen

Net assets per share-9-