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.

2nd Quarter ended September 30, 2022

Results Briefing
Digital Media Professionals Inc.
November 10, 2022
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, 2022

2

Initiatives and Progress, 2nd Quarter
ended September 30, 2022

3

Fiscal Year Ending March 31, 2023,
Full-Year Business Forecast

4

DMP’s Advanced Technologies© Digital Media Professionals Inc.

2

1

Explanation of Results, 2nd Quarter
ended September 30, 2022

2

Initiatives and Progress, 2nd Quarter
ended September 30, 2022

3

Fiscal Year Ending March 31, 2023,
Full-Year Business Forecast

4

DMP’s Advanced Technologies© Digital Media Professionals Inc.

3

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
LimitedProduct 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.

4

2nd Quarter ended September 30, 2022

Business Highlights• Six-month sales reached a record high. Operating loss, ordinary loss, and net loss attributable to owners of theparent also improved year on year.
• Sales by business/field are growing and steady, except for the professional service and the robotics field.
Professional service business in the robotics field is expected to recover from Q3 onward.

Overall

Sales by businessNet sales

IP Core License

SafetyRobotics¥ 925M

¥ 67M

¥ 49M

¥ 31M

（YoY* +34％）
Ordinary income¥ -94M（YoY ¥ +14M）（YoY -1%）

Sales by field（YoY +9%）（YoY -71%）

Amusement

Other¥ 789M¥ 55M

Product¥ 798M（YoY +59%）
Professional service（YoY +58%）（YoY +34%）¥ 59M（YoY -50%）* YoY :Year on Year

© Digital Media Professionals Inc.

5

2nd Quarter ended September 30, 2022

Results Highlights: P/L
Net sales grew mainly due to higher sales in the product businessand losses improved(Unit: million yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

2nd Quarter ended
Sept. 30, 2021

2nd Quarter ended
Sept. 30, 2022

Amount change

690

925

+234

-109

-102

+7

-109

-94

+14

-110

-95

+14

⚫ Net sales increased 34.0% mainly due to growth in the amusement field, despite a decline in theprofessional service business in the robotics field. Operating loss also improved.
⚫ Ordinary loss and net loss attributable to owners of the parent also improved year on year, due in partto foreign exchange gains.

© Digital Media Professionals Inc.

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2nd Quarter ended September 30, 2022

Results Highlights: Net Sales by Business and Field•In the safety field, the business domain expanded to a broader safety field in addition to ADAS/DMS using dashcams.
•Robotics business is expected to expand mainly in the product and professional service businesses from Q3 onward.

●Sales by business●Sales by field

IP core license business ¥67 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¥798 million

Same period¥502 million
last year●Recorded sales from volume shipments of RS1, volume shipments of ZIA
C3 kit for peripheral monitoring of commercial vehicles, and Cambrianvision systems

Professional service
business¥59 million

Same period¥120 million
last year●Recorded revenues from contracted development services in the safety,
robotics, and amusement fields●R&D for robotics customers is in a transitional phase, resulting in a temporary
decrease in projects

Safety field¥49 million

Same period¥45 million
last year●Recorded recurring revenues (running royalties and subscription fees) andprofessional services revenues related to dashcams●Recorded revenue from volume shipments of ZIA C3 kit for peripheral
monitoring of commercial vehicles

Robotics field¥31 million

Same period¥106 million
last year●Started to record subscription revenues●Customer R&D is in a transitional phase, resulting in a temporary decline insales in the professional service business

Amusement field¥789 million

Same period¥499 million
last year●Recorded sales of RS1 for mass production

Other¥55 million

Same period¥38 million
last year●AI/GPU running royalties for digital equipment grew
© Digital Media Professionals Inc.

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2nd Quarter ended September 30, 2022

Results Highlights: B/S

Equity ratio remains high at 86.2%
End of March2022

End of Sep
2022

AmountchangeMajor factors

Current assets

2,784

3,033

+249

Accounts receivable - trade andcontract assets +198, Inventories +46

Non-current assets

688

452

-235

Investment securities -199
Other intangible assets -23

3,472

3,485

+13

Current liabilities

358

462

+103

Non-current liabilities

18

18

+0

Total liabilities

376

480

+104

Total net assets

3,095

3,004

-90

Total liabilities andnet assets

3,472

3,485

+13

(Unit: million yen)

Total assets© Digital Media Professionals Inc.

Accounts payable - trade +122

Retained earnings -95

81

Explanation of Results, 2nd Quarter
ended September 30, 2022

2

Initiatives and Progress, 2nd Quarter
ended September 30, 2022

3

Fiscal Year Ending March 31, 2023,
Full-Year Business Forecast

4

DMP’s Advanced Technologies© Digital Media Professionals Inc.

9

2nd Quarter ended September 30, 2022: Initiatives and Progress

Robotics Field◼ Expand reach to industries with high robotics implementation effectiveness (manufacturing, transportation, etc.)◼ Focus on areas and technologies where the DMP robotics portfolio can demonstrate competitive advantages andadd values⚫ Refinement and focus of proprietary technologies• Improved ZIA SLAM (MOVE) functionality and robustness at the ATC(Asia and Pacific Trade Center) facility with the support of the City of Osaka• Developed DMP Robot Safety, a digital safety fence that supports collaboration
between humans and picking robots, and DMP Picking Check, which measures
success and failure of robot picking⚫ Expansion of Cambrian vision system business
Cambrian's strengths such as accuracy, speed, wide range of picking targets, andstability under ambient light have been highly evaluated, leading to increased adoption
and high-probability prospects in the manufacturing industry, particularlyin the automotive industry⚫ Pursuit of high added value• Developed advanced AMR that combines AMR (Autonomous Mobile Robot) androbot picking to support complete automation of parts delivery in factories• Started recording subscription income in the robotics field© Digital Media Professionals Inc.

Advanced AMR Demonstration
at the RoboDEX Nagoya
10

2nd Quarter ended September 30, 2022: Initiatives and Progress

Safety Field◼ Aim for stable growth by providing new IP core licenses, recurring businesses, and professional services◼ Expand business from safe driving assistance to broader safety field⚫ Business expansion by deeply cultivating existing customers and acquiring new customers• Continued to provide total support to existing customers from edge (ZIA SAFE) to cloud (ZIA Cloud SAFE)• Acquired PoC projects for new customers⚫ Recurring business growth• Acquired stable subscription revenues, but royalty revenues were not achieved
due to the shortage of semiconductors• Running royalty income from OTA* for already shipped equipment will berecorded from Q3 onward

SafetyPublic safety, Smart city

⚫ Business expansion from safe driving assistance to broader
safety field• Mass production shipment of ZIA C3 kits for peripheral monitoring ofcommercial vehicles• Progress in PoC relating to smart city for human flow and traffic volume survey
using edge cameras

Safe driving
assistance*OTA (Over-the-Air): Technology to send and receive data (software) via wireless communication© Digital Media Professionals Inc.

11

2nd Quarter ended September 30, 2022: Initiatives and Progress

Amusement/Other Field⚫ Amusement field• Continued volume shipments of RS1 in response to large-scale orders• Despite the shortage of semiconductors and materials, the market for 6.5-type pachislot machineswith expanded game features has been strong. Smart Pachislot and Smart Pachinko machines are
expected to be introduced in the market during this fiscal year

⚫ AI/GPU IP• Cumulative shipments of our customers' digital devices incorporating DMP’s AI/GPU IPs reached 150 million units
Current royalty business also remained strong year-on-year due to license renewals, etc.
• Started recording royalty income in the second quarter from ZIA DV720,
the AI processor IP adopted for TVS REGZA’s 4K TVs for Its balance of computing
performance and silicon size
Article appeared in "TechanaLye Report No. 632" on DV720 being adopted for"HV8107 image processor" for TVs jointly developed by HISENSE and TVS REGZA© Digital Media Professionals Inc.

12

1

Explanation of Results, 2nd Quarter
ended September 30, 2022

2

Initiatives and Progress, 2nd Quarter
ended September 30, 2022

3

Fiscal Year Ending March 31, 2023,
Full-Year Business Forecast

4

DMP’s Advanced Technologies© Digital Media Professionals Inc.

13

Fiscal Year Ending March 31, 2023

Business Forecast
No change in the full-year earnings forecast announced on May 13, 2022
(Unit: million yen)

FY 03/2022(Actual)2nd Quarter ended
Sept. 30, 2022

FY 03/2023(Forecast)

Net sales

1,667

925

2,370

Operating income

-126

-102

25

Ordinary income

-122

-94

25

Net income attributableto owners of parent

-157

-95

20

⚫ Net sales progress (vs. full-year forecast) remained 39% in 2Q cumulative, but growth in IP core license,
products, and professional service business is expected from 3Q onward• Safety: Royalty income from OTA and professional service revenue are expected to grow• Robotics: Sales of Cambrian products and professional service business for low-speed autonomous driving areexpected to grow• Amusement: Continue volume shipments of "RS1" image processing semiconductors• Other: AI/GPU running royalties from newly adopted digital devices are expected to grow© Digital Media Professionals Inc.

14

1

Explanation of Results, 2nd Quarter
ended September 30, 2022

2

Initiatives and Progress, 2nd Quarter
ended September 30, 2022

3

Fiscal Year Ending March 31, 2023,
Full-Year Business Forecast

4

DMP’s Advanced Technologies© Digital Media Professionals Inc.

15

Deep Learning

Big Data

Algorithms put to practical use andapplied to a wide range of applications

Easier learning of neural networks

Effective Hardware

Widespread use of low-power hardware

Cloud Computing

Simplification and easier large-scale
deploy of development

Capital/Human Resources

Acceleration of development, innovation
and business deployment

Business Opportunities

AI and Computer Vision: Business Opportunities Ripen

Source: Edge AI Vison Alliance© Digital Media Professionals Inc.

16

Solving Real-world Problems on a Large Scale

Source: Edge AI Vison Alliance© Digital Media Professionals Inc.

17

DMP’s Strengths - Technology Enabling Domain optimization
Domain optimization through AI and image processing technologies backed by GPU development
and a wide range of products and services

Optimal solutions by combining AI
and image processing technologies

Full stack development of algorithms,
software, and hardware

AI

Computer
VisionOptimal balance of real-time
performance and processing powerwith the edge and the cloud

Low Power
Hardware

Edge
Computing© Digital Media Professionals Inc.

Various IP and optimization technologies toenable development of power-saving, highperformance systems

18

Priority Measures• Increase added value in the amusement business• Develop next generation AI processor IP- Expand licensing to other fields by levaraging mass production results of TVs andcameras• Promote robotics business with a focus on autonomous driving and picking• Expand business in the safety field and continuously improve value proposition• Focus on next-generation sensor technology for the next stage of growth• Improve continuously quality and development process© Digital Media Professionals Inc.

19

DMP’s Focused Fields
SafetyRobotics
Amusement

Safe driving assistance system
DMS/ADAS
Cloud service
Amusement SoC RS1Graphics processor
AI inference processor IP
GPU IP
ISP＆Stereo Vision
Camera module

GPU

Autonomous driving
technologies
Visual SLAM
Picking system

Low-power IP

Computer
Vision© Digital Media Professionals Inc.

Edge & Cloud
Computing20

AI Opens a New Era in TV Expression
DMP AI Processor DV720 adopted for REGZA's
new processor ZRαEnabling real-time high bit-accuracy signal processing and state-of-the-art super-resolution

Focus by determining scene perspective

Image enhancement for the Net bandwidth

Noise reduction

Beautiful skin effect© Digital Media Professionals Inc.

21

Realize optimal configuration and layout of flexible production lines and 24-hour operation
Attaching the camera to a commercially available robot arm
enables various tasks such as picking, welding, and inspection

Compatible with various parts
Capable of picking a wide range of parts, including transparent
parts, plastics, and shiny metals

Speed• Setup time of 2-3 days instead of several weeks required so far• Recognition time is about 0.2 seconds. With the use of a high-speed
industrial robot, a pick cycle time of 2-3 seconds can be achieved.

Robust to ambient light
Unaffected by ambient light and applicable to all external light conditions

Can be attached to robot arms of major manufacturers(Also compatible with robot arms of Japanese ones)

Accuracy
Capable of detecting and picking parts with an accuracy of 1 mm or less

© Digital Media Professionals Inc.

22

Bin picking

STEP 1:
Preparation of CAD data of
items to be picked

Kitting

STEP 2:
Learning by AI

Cable insertion

Assembly/ Welding/Inspection

STEP 3:
Picking &placing

Setup time 2-3 days total (less than one-fifth
the time of conventional systems)© Digital Media Professionals Inc.

23

Application of ZIA SAFE to infrastructure and robotics
Safe driving assistance system

Infrastructure: Analysis of dangerous behaviors in trains

Robotics: Digital safety fence "DMP Robot Safety"© Digital Media Professionals Inc.

24

Smart Pole - Approach to Realizing Smart Cities

Prophesee’s event-based camera- Detects moving people and vehicles at night and in backlight- Record day and night with low-capacity data
- Utilize accumulated big data for urban development and resilience

DMP’s ZIA C3 AI processor module

Source: Restar Holdings

DMP’s AI processor and event-based camera (neuromorphic sensor) that imitates the function of the humanretina/brain to detect people and cars in dark areas© Digital Media Professionals Inc.

25

Bringing Together DMP’s Technologies - Advanced AMR
Connect

See

Collaboration with
Softbank• 5G

Image Processing
technologies• Camera• AI recognition• ISP/Stereo IP

Grab
Picking solutions• Cambrian Vision System

Reproduce

SafelySafety technologies• ZIA SAFE
• Digital safety fence

3D technologies• Digital Twin

Run
Autonomous driving technologies• ZIA MOVE• ZIA SLAM
© Digital Media Professionals Inc.

RoboDEX NAGOYA in October 2022
Demonstration at DMP booth26

<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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