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.

MAKING THE IMAGE INTELLIGENT

2nd Quarter ended September 30, 2023

Results Briefing
Digital Media Professionals Inc.
November 13, 2023
The views and forecasts that appear in these materials represent determinations made by the Company at the time the materials were created.
The accuracy of the information therein is not guaranteed.
Please be aware of the possibility that actual performance and results may differ considerably due to a variety of factors.

1

Explanation of Results, 2nd Quarter
ended September 30, 2023

2

Full-Year Business Forecast,Fiscal Year Ending March 31, 2024

3

Challenges and Initiatives

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1

Explanation of Results, 2nd Quarter
ended September 30, 2023

2

Full-Year Business Forecast,Fiscal Year Ending March 31, 2024

3

Challenges and Initiatives

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Company Profile
Leveraging our experience and knowledge as one of the world's leading graphics IP vendors, we have recently
been contributing to solving problems for our customers and society by providing a full range of AI services fromalgorithm/software to hardware, and from the edge to the cloud.
Company name

Digital Media Professionals Inc. (DMP)

IP core license business

July 2002

・AI/GPU IP core license
・AI software license

Foundation(Listed on Tokyo Stock Exchange Mothers market inJune 2011, Moved to TSE Growth market in April 2022)

Location

Nakano-ku, Tokyo, Japan

Representative

Chairman and CEO: Tatsuo Yamamoto
President and COO: Tsuyoshi Osawa

Capital1,838 million yen

Number of
consolidated
employees

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

69 (as of April 1, 2022)

Professional service business

Number ofpatents

35 cases

Consolidated
subsidiary

Digital Media Professionals Vietnam Company
Limited

MAKING THE IMAGE INTELLIG ENT

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

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2nd Quarter ended September 30, 2023

Business Highlights• Six-month sales reached a record high. Operating income, ordinary income, and net income attributable toowners of the parent also increased significantly and returned to profitability.
• Amusement field sales grew significantly, mainly due to the brisk pachislot market, including smart pachislot.
Robotics field saw product sales increase, and the high-margin GPU-related IP core license business also saw
strong sales.

Overall

Sales by businessNet sales

IP Core License

SafetyRobotics¥ 1,442M

¥ 94M

¥ 34M

¥ 69M

（YoY* +56％）
Ordinary income¥ 140M（YoY ¥ +234M）（YoY +40%）

Sales by field（YoY -30%）（YoY +122%）

Amusement

Other¥ 1,257M¥ 80M

Product¥ 1,301M（YoY +63%）
Professional service（YoY +59%）（YoY +46%）¥ 46M（YoY -22%）* YoY :Year on Year

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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2nd Quarter ended September 30, 2023

Results Highlights: P/L
Net sales and incomes grew significantly mainly due to growthin the amusement field and product business(Unit: million yen)

Net sales
OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

2nd Quarter ended
Sept. 30, 2022

2nd Quarter ended
Sept. 30, 2023

Amount change

925

1,442

+516

-102

134

+237

-94

140

+234

-95

121

+216

⚫ Net sales increased 55.8% due to significant growth in product business such as Cambrian visionsystem in addition to "RS1" image processing semiconductors for the amusement market⚫ Operating income, ordinary income, and net income attributable to owners of the parent also increased
significantly and returned to profitability

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2nd Quarter ended September 30, 2023

Results Highlights: Net Sales by Business and Field●Sales by business●Sales by field

IP core license business ¥94 million

Same period¥67 million
last year●Recorded AI/GPU running royalties for digital equipment, recurring revenues
in safety/robotics fields, maintenance/support revenues, etc.

Product business¥1,301 million

Same period¥798 million
last year●Recorded sales from volume shipments of RS1 and Cambrian Vision Systems

Professional service
business¥46 million

Same period¥59 million
last year●Recorded revenues from AI/GPU contracted development services●R&D for robotics customers is in a transitional phase, resulting in a temporary
decrease in projects

Safety field¥34 million

Same period¥49 million
last year●Recorded recurring revenues (running royalties and subscription fees),
maintenance/support revenues related to dashcams, and professional
service revenue

Robotics field¥69 million

Same period¥31 million
last year●Recorded sales of products such as Cambrian Vision Systems andprofessional services

Amusement field¥1,257 million

Same period¥789 million
last year●Recorded sales of RS1 for mass production

Other¥80 million

Same period¥55 million
last year●Recorded AI/GPU running royalties and maintenance/support revenues for
digital equipment

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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2nd Quarter ended September 30, 2023

Results Highlights: B/S

Equity ratio remains high at 87.9%
End of March2023

End of Sep
2023

AmountchangeCurrent assets

3,683

3,347

-336

Accounts receivable - trade and contract
assets -429, Cash and deposits +108

Non-current assets

158

344

+186

Investment securities +199

3,842

3,691

-150

Current liabilities

700

428

-271

Non-current liabilities

17

18

+0

Total liabilities

717

446

-271

Total net assets

3,124

3,245

+121

Total liabilities andnet assets

3,842

3,691

-150

(Unit: million yen)

Total assets

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

Major factors

Accounts payable - trade -291

Retained earnings +12188

1

Explanation of Results, 2nd Quarter
ended September 30, 2023

2

Full-Year Business Forecast,Fiscal Year Ending March 31, 2024

3

Challenges and Initiatives

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Fiscal Year Ending March 31, 2024

Business Forecast

Upwardly revised full-year forecasts announced on May 12
FY 03/2024 (Forecast)AmountRevisedChangeFY 03/2023(Actual)2nd Quarter ended
Sept. 30, 2023

Previous

2,232

1,442

2,600

2,950

+350

+13.5%

Operating income

27

134

150

240

+90

+60.0%

Ordinary income

28

140

150

240

+90

+60.0%Net income attributableto owners of parent

22

121

120

200

+80

+66.7%(Unit: million yen)

Net sales

Percent
Change⚫ In the first half of the fiscal year, both sales and profits exceeded initial expectations, mainly due to brisk
sales in the product business and the amusement field. Solid performance is expected in 3Q and beyond• Amusement: Mass production shipments of "RS1" image-processing semiconductors remain strong• Safety: Expect license and professional service revenues• Robotics: Expect sales of Cambrian and other products, and professional service revenue for low-speed autonomous
driving• Other: Expect robust license revenue from GPU related products
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1

Explanation of Results, 2nd Quarter
ended September 30, 2023

2

Full-Year Business Forecast,Fiscal Year Ending March 31, 2024

3

Challenges and Initiatives

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Our Purpose

Making the Image Intelligent
Making画像を知能化する
the Image Intelligent"To"Tocreatecreateinnovative
innovativeproducts
productsandandservices
servicesthat
thatharness
harnessthe
thepower
powerofofimage
imageintelligence
intelligencetotosolve
solve
real-world
real-worldproblems
problemsand
anddrive
drivevalue
valueforforourour
stakeholders.“
stakeholders.”
画像インテリジェンスの力で現実世界の問題を解決し、ステークホルダーに価値をもたらす革新的な製品とサービスを創造する

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Image Intelligence - solving real-world problems

Source: Edge AI＋Embedded Vision Alliance

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Amusement Field⚫ Real-time 3D engine and high-performance, high-compression video engine on a single chip (industry's first),
enabling both beautiful video expression and reduction of machine chassis cost
⚫ Strong volume production shipments of RS1, primarily for pachislot machines, including 6.5 model and smart
pachislot, which have been enjoying high utilization.
⚫ Sales of ZEEG chassis equipped with RS1 reached 15 models and 260,000 units. (as of end of July 2023)

Pachinko minimum 2D
performance line

Competitive
3D Chip

Solving the industry's problem: Reducing development and component costs by standardizing parts for pachinko and pachislot

RS1
The industry's only 2D and 3D integrated chip:
Satisfying both pachinko and pachislot
functionality and performance requirements

Pachislot minimum 3D performance line

Competitive 2D Chip

2D Performance（Pixel/s)

MAKING THE IMAGE INTELLIG ENT

Adoption of ZEEG standard chassis equipped with
RS1 is progressing in the industry and market shareis expanding.

© Digital Media Professionals Inc.

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Safety Field⚫ Recurring revenues from existing projects from edge to cloud⚫ ZIA SAFE was adopted as the driver monitoring function of DENSO TEN's safe driving management telematics
service "Offseg“⚫ Jointly developed an AI camera system for ZEB (Zero Energy Building Management) with THine Electronics

Car exterior and interior (driver) monitoring

Local Government
Public Transportation
EnergyBuilding/Construction
Smart City

MAKING THE IMAGE INTELLIG ENT

Public Safety© Digital Media Professionals Inc.

BEMS

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Safe Driving Assistance System - ZIA SAFE

Features• High recognition performance and flexible and scalable system configuration by combining edge and cloud• Rapid realization of high-quality safe driving systems by combining various functional modules• High responsiveness to accident risks caused by multiple factors through the development of both DMS and ADAS

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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ZIA SAFE Adoption Case (DENSO TEN)
(June 19, 2023) DMP's ZIA SAFE high-precision image recognition edge AI software has been adopted
as the driver monitoring function of “Offseg”, a new safe driving management telematics service productby DENSO TEN Limited for corporate customers.

Contributing to the realization of real-time driver alerts using AI
In recent years, in order to realize a safer mobility society,dashcams are required to have not only recording functions but
also driver monitoring (DMS) and other functions as a safe
driving management system. DMP's ZIA SAFE, which weadopted for our safe driving management telematics service(Offseg) using a communication-type dashcam, has made asignificant contribution to the realization of our service with its AI
image recognition function that combines low load, high reliability,and high functionality, together with professional services backed
by DMPs advanced technology.
[Mr. Kaoru Noumi, Project Leader, Connected Business Group,
DENSO TEN Limited]

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Collaboration with THine Electronics

Accelerating realization of next-gen intelligent BEMS
and digital transformation of industrial processes such as factories• Realize factory flow lines and automation by process by measuring data for each process, etc.
• Intelligently control air conditioning and lighting by using high-performance cameras and a highly reliable AI engine that
detects the location, number of people, and attributes of people in the office and links them to the BEMS function• Detect human movement in unoccupied nighttime and access-controlled areas to evolve office security management
EdgeAI-LinkTM Camera
EdgeAI-LinkTM
Camera Unit

Camera unit can be ceiling-mounted

BEMS Server(Central Monitoring)

Lighting

Image
SensorEnvironmental Sensor

Air
Conditioner

Anti-crime

Controller

DMP(AI Engine)

Human Detecting Sensor

THine Electronics EdgeAI-Link + DMP AI Software
MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Robotics Field⚫ Promoted activities to acquire new licenses of ZIA MOVE for autonomous robots through development kits,with a track record of multiple adoptions⚫ Cambrian vision system has strengths in accuracy and speed of target part recognition and robustness against
ambient light.
• In addition to the overseas products already connected, Cambrian Vision System is now compatible with major collaborative
robots made in Japan• Realized picking of transparent objects for pharmaceuticals, cosmetics, and food industries industries using industrial robots
with high throughput
Recognition

Operation

Judgment

ZIA MOVE

Manufacturing

Transportation/
Logistics

Pharmaceuticals/
Cosmetics/FoodConstruction

Agriculture

Medical/Nursing Care

Advanced AMR
Cambrian Vision System

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Targeted Robots for ZIA MOVE
Cameras are used as the primary sensor for recognition and autonomous driving
in all types of targeted robots.

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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ZIA MOVE: Integrated Software Platform for Autonomous Driving
Integrated software platform for autonomous driving that includes DMP’s Visual SLAM technology
Functions

Sensing

RGBD
CameraFully equipped with・Sensing
・Judgement
functions for automatic/ ・Recognition and self- ・Operation
autonomous driving
localization estimation

Recognition and self-localization estimation

Judgement

Operation

Path generation
Obstacle avoidanceSteering
Accelerator
Brake

StereoCameraSLAM (self-localization estimation)
2D MapObstacle detection

DMP ZIA MOVE Evaluation Kit

Features• Software package for functions required for autonomous driving, from self-localization
estimation to obstacle-aware path generation• ROS interface support and modular architecture for high function extensibility• Map generation without the need for markers• High stop position accuracy (±4mm), obstacle detection capability, and safety
MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Cambrian Vision System - Collaboration with Robot Vendors

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Cambrian Vision System - Advantages

The industry's only vision system for picking transparent parts*
Robustness todisturbance: HighTact time: Short

0.2 - 0.3sec
Parts size: Small

Parts transparency:

Parts size: Big Low

Company A
Company C

Parts transparency:
High

Company A
Company B

Company D

Company C
Company B

Company D

Tact time＞2.0sec

Robustness todisturbance: Low

https://youtu.be/wpr0BeZ9CRs?si=Vgg44aCYGWBACkfV* Based on our own research

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Use Case: Automated Bottle Feeding by Tokunaga Corporation
Challenges by Cambrian vision system for further automation needs
Cambrian and Fanuc industrial robot automate feeding of translucent bottles

The Cambrian vision system is the first 3D robot
vision system that we, TOKUNAGA, handle on afull scale. It is perfect for the concept of the nextgeneration bottle feeding machine we are aiming inthat It does not use lights so it can recognize eventranslucent or shiny bottles and is capable of highspeed processing.
[Mr. Tomohiro Mitsuhashi, General Manager, FA
Machinery Department, TOKUNAGA Corporation]
https://youtu.be/Pcyf7-skjiA

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Additional Investment in Cambrian Inc.

Additional investment (US$0.48 million) in Cambrian Inc. to strengthen
the strategic partnership
2021
April: Acquired exclusive right to sell Cambrian vision systems in Japan
June: Acquired a portion of Cambrian‘s Series Seed Preferred Stock (US$0.37M)• Continued marketing and sales activities to expand domestic market share• Achieved results such as increased adoption in the manufacturing industries centered on the automotive industry and food,
pharmaceuticals, and cosmetics industries2023
End of November: Scheduled to acquire a portion of Cambrian‘s Series Seed Plus Preferred Stock (US$0.48M)
Objectives: financially contribute to enhancing Cambrian's development capabilities and the competitiveness of products andtechnologies, and further strengthen the strategic capital and business partnership

Improving DMP’s corporate value in the medium to long term
• Further expand business in the robotics field, a DMP’s focus area, by increasing sales of Cambrian's products and services• Solve social problems such as labor shortage due to the declining birthrate and aging population and productivity improvement
MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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Integration of Safety and Robotics Technologies
The integration of DMP's safety and robotics technologies
will solve a variety of social problems and create new value.
Robotics

Robotics+ Safety

Efficient movement
and transportation ofpeople and goods

Image
Processing
Technology

ZIA
MOVE

Solve social problems
Create new services• Accurate recognition ofsurroundings for efficient
movement and a safe
environment• Creation of new services
based on the recognition
information obtained

SafetyPrevent accidents
and disasters

Artificial
Intelligence

ZIA
SAFE
MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

• Public transportation• Medical and nursing
care facilities• Schools• Factories and plants• Logistics• Agriculture• Construction site
• Offices, Buildings, Shops• Parking lots

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Other Field (IPs for digital equipment)⚫ Provide small size, low power consumption, and high-performance IPs optimized forcustomers' digital equipment applications and embedded SoCs
⚫ Running royalties and maintenance/support revenues from existing IP/customers were robust⚫ Promoting customer proposal activities for ZIA A3000, an AI IP processor that significantly
outperforms current products.
GPU IP
StereoVision IPAI IP
MAKING THE IMAGE INTELLIG ENT.
..
© Digital Media Professionals Inc.

Cumulative shipments of over 150 million customer products27
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AI Inference Processor IP A3000
DV700 series adopted in REGZA and other high-volume products
DMP AI Processor DV720 adopted for REGZA's new processor ZRαEnabling real-time high bit-accuracy signal processing and stateof-the-art super-resolution

Focus by determining scene perspective

Image enhancement for the Net bandwidth

Beautiful skin effectNoise reduction

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

Next-gen AI inference
processor IP A3000

6x performance over
DV740 (4TOPS)

Start licensing in the second halfof fiscal year 2023
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Priority Measures

Accelerating our business with the Purpose of Making the Image Intelligent• Capture new market opportunities through knowledge gained from expanding
amusement market share• Create new value through integrating robotics and safety technologies• Promote ZIA MOVE and ZIA SAFE platform business• Strengthen strategic partnership with Cambrian• Acquire AI IP (A3000) license

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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 and trends in the industries in which we are engaged. As such, actual results
may differ materially from those anticipated.
⚫ The purpose of this document is to provide information for the purpose of understanding
our company and is not to solicit investment in securities issued by our company. Pleaserefrain from making any investment decisions based entirely on this document.

MAKING THE IMAGE INTELLIG ENT© Digital Media Professionals Inc.

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