Fiscal Year Ended March 31, 2021

Results Briefing
Digital Media Professionals Inc.
May 19, 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.
© Digital Media Professionals Inc.

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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2021

2

Business Environment and Forecast,Fiscal Year Ending March 31, 2022

3

Medium-term Business Plan

© Digital Media Professionals Inc.

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1

Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2021

2

Business Environment and Forecast,Fiscal Year Ending March 31, 2022

3

Medium-term Business Plan

© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2021

Results Highlights: P/L⚫ Although sales in the LSI product business (image processor RS1 for amusement and AI FPGA modules) increased, sales in
the IP core license business and professional service business decreased due to the impact of restraint and postponement ofdevelopment investment and development projects by some customers, mainly due to the COVID-19 and the absence of thelarge-scale GPU IP project recorded in the previous year
⚫ Operating income, ordinary income, and net income posted significant losses due to the decline in sales, especially in thehigh-margin IP core license business(Unit: million yen)

Net sales
OperatingincomeOrdinary
incomeNet income

FY March 2020(non-consolidated)

FY March 2021
(consolidated)

1,328

1,009

82

△425

85

△361

65

△364

Note）1. 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 previous year)(However, sales of the subsidiary in Vietnam are currently design service income only to the headquarters with no external sales)

2. Net income for the fiscal year ended March 2021 is the net income attributable to owners of the parent© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2021

Results Highlights: Net Sales by Business
IP core license business

Sales¥144 million

Same period last year
¥380 million(non-consolidated)●Won new/upgraded AI licenses for robotics, etc., recorded running royalty and subscription income for AI-based
safe driving assistance●Large-scale GPU IP project booked in Q4 previous year stripped away

●Impacts of temporary restraint and suspension of development investment / project by some customers

LSI product business

Sales¥658 million

Same period last year
¥553 million(non-consolidated)●Recorded sales of “RS1” for volume production and “ZIATM C3” AI FPGA modules including
mass production for business vehicles

Professional services business

Sales¥206 million

Same period last year
¥394 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 robotics●Impacts of temporary restraint and suspension of development investment / project by some customers© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2021

Results Highlights: B/S
Equity ratio remains high at 93.5%
Continued to secure funds for working capital and investments for enhancement of R&D structure(Unit: million yen)

End of March 2020
(Non-consolidated)

End of March 2021
(Consolidated)

Major breakdown
Cash & deposits 2,066, Securities 345
Accounts receivable - trade 157

Current assets

3,077

2,736

Non-current assets

763

740

3,841

3,477

Current liabilities

279

208

Accounts payable - trade 132

Non-current liabilities

18

18

Asset retirement obligation 17

Total liabilities

298

227

Total net assets

3,543

3,250

Total liabilities andnet assets

3,841

3,477

Total assets© Digital Media Professionals Inc.

Investment securities 500
Software 104

Capital stock 1,838, Capital surplus 1,858
Retained earnings -440

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Fiscal Year Ended March 31, 2021: Progress of Initiatives

Robotics
Enhanced the technology and product portfolio of robotic vehicles and collaborative robots, and implemented
market development by leveraging the ecosystem⚫ Development and provision of ZIATM SLAM and ZIATM MOVE
• Contribute to higher performance and lower costs of customer devices withhigh-precision Visual SLAM* using cameras less expensive than LiDAR• Developed ZIA™ MOVE, an integrated software platform for automatic andautonomous driving that includes ZIA™ SLAM and is fully equipped withthe functions required for robotic vehicles⚫ Capital and business alliance with Cambrian• Capital participation in Cambrian Inc, a vision system manufacturer for collaborative robot arm• Strengthen the portfolio and expand business of robotics through exclusive distribution of products
in Japan and joint development of technology and products⚫ Joined NVIDIA’s ”NVIDIA Partner Network” as a professional service partner
Expand customer base through NVIDIA's ecosystem and accelerate and strengthen the businessby contributing to early development and market launch of customers' robotics products⚫ Collaboration with Yamaha Motor• Continued to work on AI implementation in line with various products roadmaps• External sales of a high-definition compact embedded monocular camera system, a result of thecollaboration, is scheduled to start in Fiscal March 2022
* SLAM: Acronym standing for Simultaneous Localization and Mapping. It refers to estimating self-position and generating a map at the same time
© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2021: Progress of Initiatives

Safe driving assistanceCompleted the foundation for business expansion by establishing an integrated edge-to-cloud safe driving
assistance system development platform⚫ Provide safe driving assistance service through collaboration of ZIATM SAFE and ZIATM Cloud SAFE
Started providing the industry's first platform for building a safe
driving assistance system that integrates edge AI and cloudcomputing through collaboration of ZIATM SAFE and ZIATM
Cloud, an Amazon Web Services (AWS)-based SaaS-typesafe driving assistance cloud service⚫ Built up a track record of adoptions by customers• ZIATM SAFE has been adopted by JVCKENWOOD for its
dashcams for telematics service with communication capabilities (Model number: STZ-DR00), and is utilized for functions
such as driving assistance and driver monitoring• ZIATM Cloud SAFE has been adopted by DENSO TEN for its dashcams with communication capabilities for corporate
customers (G500Lite), for use in identifying near-miss images and for high-precision analysis of "distracted driving" and“drowsy driving"⚫ Started recurring businessStarted recording royalty revenue from Q2 and subscription revenue in 4Q
Full-year contribution from fiscal March 2022
© Digital Media Professionals Inc.

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Fiscal Year Ended March 31, 2021: Progress of Initiatives

Other
Built a benchmarking platform to help customers develop AI systems, and continued to collaborate with overseas
tech companies⚫ ZIATM Showcase• Platform for demonstration and benchmarking of our latest edge AI recognition models• Customers can efficiently evaluate and verify the optimal combination of AI
recognition model and hardware using their own datasets in an online environment• Current focus is on ZIATM SAFE models, with plans to expand to robotics and other⚫ Collaboration with overseas tech companies• Collaboration is in progress with France-based Prophesee on customer projects
related to the development of AI applications using its event-based vision sensors• Co-developed a new virtual AI sports coach application with France-based GrAI
Matter Labs, a pioneer in ultra-low latency computing inspired by the human brain⚫ Promotion of NEDO business• Organized the AI Edge Contest as part of “Survey of issues for finding ideas
regarding Technology Development for AI Chip and Next generation Computing forHigh-efficiency and High-speed Processing”• Worked on subsidized projects on the development of “AI Platform for Artificial
Intelligence (AI): An Energy Efficient AI Engine” and "Research and developmentof AI hardware for AI pathology imaging system for cancer companion diagnostics”© Digital Media Professionals Inc.

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1Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2021

2

Business Environment and Forecast,Fiscal Year Ending March 31, 2022

3

Medium-term Business Plan

© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2022

Business Environment⚫ Japan / World Economy• The outlook of Japan and the world economy is expected to remain severe due to the prolonged
COVID-19 crisis until vaccinations are widespread⚫ Semiconductor / AI Industry• In the semiconductor industry, the current excess demand and shortage of supply will continue inthe short term, and demand for AI and IoT is expected to grow in the medium term
• Acceleration of innovation and increased AI roles are expected for solving social problems
including the declining birthrate and the aging population, the COVID-19, and the climate change⚫ Amusement Machine Industry• Machine manufacturers are planning to increase production in preparation for the complete
replacement of old regulation machines by new regulation machines by the end of January 2022
• Systematic replacement of machines will continue during the Tokyo Olympics• Prolonged COVID-19 crisis allows no optimism about occupancy rate and purchase policy of
new machines of the halls© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2022

Consolidated Business Forecast⚫ Sales of the RS1 image processor for amusement industry is expected to expand due to the revitalization of
the market, but the impact of inventory retention in distribution channels is factored in⚫ In the safe driving assistance field, the recurring business starts to contribute throughout the year, and therobotics field also expands due to recovery/activation of customers' development investment⚫ Continue to invest in human resources to strengthen development system for mid-term and sustainable growth(Unit: million yen)

FY March 2021
(Actual)

1,500
FY March 2022
(Forecast)

Net sales

1,009

1,500

Operating income

△425

△250

Ordinary income
Net income attributableto owners of the parent

△361
△364

△250
△252

206
910

658
144

210

Mar-21

Mar-22IP license business© Digital Media Professionals Inc.

380

1,009

Product business

Professional service business

121Financial Results and Progress of Initiatives,
Fiscal Year Ended March 31, 2021

2

Business Environment and Forecast,Fiscal Year Ending March 31, 2022

3

Medium-term Business Plan

© Digital Media Professionals Inc.

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Basic policy for medium-term business direction

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.

Fiscal year ended March 2021
Performance deteriorated due to the stagnation of
the amusement market and the impact ofcustomers' restrained investment in development
caused by the COVID-19

Medium-term business goal
Focus on robotics and safe driving assistance fields
and achieve a V-shaped recovery
Net sales ¥2,500M, Operating income ¥200M in FY March 2024

© 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

* MaaS: Abbreviation for Mobility as a Service. Next-generation transportation that integrates autonomous driving, AI,
open data, etc. and integrates sharing services with conventional transportation and transportation methods© Digital Media Professionals Inc.

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Market trend• Robotics and safe driving assistance market show high growth rates• Although the amusement market continues to decline, it still has a scale of over 1 million units
Robotic Vehicle AI Related Computing Hardware Global Market*1

Worldwide shipments of collaborative robots*2

1,037(Billion Yen)(,000 unit)

45

CAGR 21%
21

CAGR 37%
62

2019 2020 2021 2022 2023 20242018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Dashcam with AI / communication function domestic market*3(,000 unit)

After market

OEM market

11,144900

CAGR 31%2,910(,000 unit)
5,000

Pachinko

Pachislot

4,000
3,000

10,244

2,000
1,000
0

2020

Amusement machine unit sales*4

2025

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
2021
(Estimate) (Forecast)

Source: *1 Yole Développement, *2 Global Information, *3 DMP’s estimate based on various statistics, *4 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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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
assistance

GrowthMaturity

Decline◎◎◎Amusement

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 share* 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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Revenue cycle• Providing added value and maximizing LTV* (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

Full-scale

development

development

Evaluation licenseprovision

Official licenseprovision
New IP creation

Professional
service business

LSI 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)* LTV: Abbreviation for Lifetime Value. The profit earned from the beginning to the end of transactions with a customer (customer lifetime value)© Digital Media Professionals Inc.

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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-2619

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-2620

Amusement market trend and medium-term business outlook• RS1 shipments in fiscal March 2022 are expected to be higher than in fiscal March 2021, but the impact of inventory retention
in distribution channels is factored in• 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

Mar-23Mar-24

Impact of channel
inventory

840
646

Mar-21

Mar-22© Digital Media Professionals Inc.

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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.

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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
(Forecast)March 2024
(Target)Net sales

1,009

1,500

2,500

Operating income

▲425

▲250

200

Ordinary Income

▲361

▲250

200

© Digital Media Professionals Inc.

CAGR(Mar 21-Mar 24)
35%

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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.

© Digital Media Professionals Inc.

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