(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, 2023 (Japanese GAAP)
August 9, 2023
Company name: Digital Media Professionals Inc.
Listing: Tokyo Stock Exchange
Code number: 3652
URL: https://www.dmprof.com/en
Representative: Tatsuo Yamamoto, Chairman, President and CEO
Contact person: Tsuyoshi Osawa, Senior Managing Director, General Manager of Corporate Planning Dept.
Scheduled date of filing Quarterly Securities Report: August 9, 2023
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: Yes
Briefing session on the quarterly financial results: No

Tel. (03) 6454 - 0450

1. Consolidated financial results for the three months ended June 30, 2023 (April 1, 2023 through June 30, 2023)(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, 2023
699
80.3
30
32
26
－
－
－
3 months ended June 30, 2022
387
54.7
△89
－
△83
－
△84
－
Reference) Comprehensive income: 26 million yen as of June 30, 2023; △79 million yen as of June 30, 2022

Net income per shareyen
8.40△26.793 months ended June 30, 2023
3 months ended June 30, 2022

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

Net assets

Millions of yen

Equity ratio

Millions of yen

As of June 30, 2023
3,684
3,150
As of March 31, 2023
3,842
3,124
Reference) Shareholders' equity: 3,150 million yen as of June 30, 2023; 3,124 million yen as of March 31, 2023

%
85.5
81.3

2. Cash dividends
1Q-endyen-

Year ended March 2023
Year ending March 2024

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 2024 (Forecast)

Total

0.00

yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2024 (April 1, 2023 through March 31, 2024)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
2,600
12.0
150
Note) Revision of forecasts during the period: None

Ordinary income% Millions of yen
454.3
150

-1-

(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
420.6
120
431.7
38.15

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, 2023

3,152,400 shares

As of March 31, 2023

3,152,400 shares

As of March 31, 2023

7,166 shares(2) Number of treasury shares at the end of the period
As of June 30, 2023

7,166 shares(3) Average number of shares issued during the period
3 months ended June 30, 2023

3,145,234 shares

3 months ended June 30, 2022

3,147,278 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) Operating results
In the first quarter ended June 30, 2023, the Japanese economy experienced a moderate recovery supported byrevitalized socioeconomic activities, partly due to the change in the classification of new coronavirus infections fromcategory 2 to category 5 on May 8. However, the impact of the sharp depreciation of the yen and rising prices andenergy costs on the economy and people's lives became apparent. The global economy also showed signs of recovery
in general, but in addition to the effects of monetary tightening, downside risks to the economy from rising prices andother factors need to be kept in mind.
The semiconductor industry, to which our group belongs, is polarized with strong demand for automotive and industrial
equipment and declining demand for consumer electronics equipment caused by the economic slowdown, and negative
growth is forecasted mainly due to reduced demand for memory in the short term. In the medium term, however,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 and climate change, and in realizing a safe and securesociety.
In this environment, our group strives to create innovative products and services that drive value to our stakeholders
and solve real-world problems through the power of image intelligence, under the Purpose of "Making the ImageIntelligent." In the core fields of safety and robotics, 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, basedon our integrated development system from algorithms and software to our strength, hardware, throughout thedevelopment 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 safety field, we carried out professional services for existing customers for safe driving assistance (sales arescheduled to be recorded from the second quarter onwards) and earned recurring revenue from existing projects fromthe edge to the cloud. In addition, ZIA SAFE, our high-precision image recognition edge AI software, has been adopted
for the driver monitoring function of DENSO TEN's corporate telematics service "Offseg".
In the robotics field, we carried out professional services for existing customers (sales are scheduled to be recorded
from the second quarter onwards) and promoted activities to acquire new licenses for autonomous robots through thedevelopment of demonstration models. In the business of vision systems for picking robots by Cambrian Inc., a capitaland business partner, we made progress in product shipments and business projects aimed at reducing labor andimproving productivity for end customers in the manufacturing industry, particularly the automotive industry, andcompleted connection to major Japanese collaborative robots in addition to overseas robots already connected in order
to expand the ecosystem. Furthermore, we realized picking of transparent objects for pharmaceuticals, cosmetics, andfood industries using industrial robots with higher processing capacity compared to collaborative robots, taking
advantage of the strengths of Cambrian products in recognition speed and accuracy and robustness against
environmental changes such as ambient light.
In the amusement field, we continued mass production shipments of our image processing semiconductor, RS1, forpachislot machines, including smart pachislots with strong utilization and pachinko machines, and aimed to expand ourshare in the market segment where we can demonstrate the superiority of this unique 2D/3D integrated chip.
-3-

Other initiatives and achievements include the development and performance verification of ZIA A3000, an AI IP
processor that significantly exceeds the performance of current products.

With regard to business results for the current first quarter, in the product business, we continued mass production
shipments of the RS1 image processing semiconductor and shipped Cambrian Vision Systems. In the IP core licensebusiness, we recorded AI/GPU running royalty income, recurring revenue in the safety and robotics fields, andmaintenance/support revenues. In the professional service business, we provided AI/GPU contracted development
services.

As a result, we recorded net sales for the first quarter of the current fiscal year of 699 million yen (up 80.3% from thesame period of the previous year), operating income of 30 million yen (operating loss of 89 million yen for the same
period of the previous year), ordinary income of 32 million yen (ordinary loss of 83 million yen for the same period of
the previous year) and net income attributable to owners of the parent of 26 million yen (net loss of 84 million yen forthe same period of 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 43 million yen (32 million yen in the same period of the previous fiscal year), mainly due to therecording of recurring revenue in the safety and robotics fields and maintenance/support revenues in addition to GPU
running royalty income for digital equipment such as digital still cameras, 4K TVs and office automation equipment.
b) Product businessNet sales amounted to 652 million yen (343 million yen in the same period of the previous fiscal year) due to sales frommass production shipments of the RS1 and Cambrian Vision Systems.
c) Professional service businessNet sales amounted to 3 million yen (11 million yen in the same period of the previous fiscal year) for providing AI
contracted development services in the robotics field and GPU contracted development services.

A summary of results by field is as follows.
a) Safety field
Net sales amounted to 6 million yen (26 million yen in the same period of the previous year), mainly due to the recordingof recurring income and maintenance/support revenues in the IP core license business.
b) Robotics field
Net sales amounted to 23 million yen (4 million yen in the same period of the previous fiscal year) due to the recordingof sales of Cambrian Vision Systems in the product business and providing professional service business.
c) Amusement field
Net sales amounted to 630 million yen (332 million yen in the same period of the previous year), mainly due to themass production shipments of RS1.
d) Other
Net sales amounted to 38 million yen (24 million yen in the same period of the previous fiscal year), mainly due to therecording of GPU running royalty income for digital equipment and maintenance/support revenues.

-4-(2) Financial position(Assets)
Current assets at the end of the first quarter amounted to 3,533 million yen, down 150 million yen from the end of theprevious fiscal year mainly attributable to an increase in cash and deposits (up 195 million yen) and a decrease inaccounts receivable and contract assets (down 354 million yen). Noncurrent assets amounted to 151 million yen, down
6 million yen from the end of the previous fiscal year mainly attributable to decreases in property, plant, and equipment(down 3 million yen) and intangible assets (down 3 million yen).
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the first quarter amounted to 533 million yen, down 184 million
yen from the end of the previous fiscal year mainly attributable to a decrease in accounts payable (down 175 million
yen).
(Net assets)
Net assets at the end of the first quarter amounted to 3,150 million yen, up 26 million yen from the end of the previous
fiscal year mainly attributable to an increase in retained earnings (up 26 million yen).
As a result, the equity ratio was 85.5%.

(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, 2024, announced
on May 12, 2023.
In the first quarter of the current fiscal year, net sales reached a record high, and earnings were positive primarily driven
by strong sales in the amusement field.
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
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
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, 2023)(Yen thousand)Current Q1 period(As of Jun 30, 2023)

2,435,996
833,518
300,000
22,874408
42,583
48,427
3,683,809

2,631,722
479,240
300,000
44,905
5,055
36,24936,126
3,533,300

65,837
24,11968,342
158,299
3,842,109

62,755
20,221
68,445
151,4223,684,722

553,241
23,737
17,351
105,702700,031377,631
13,24816,269108,772
515,920

17,926
17,926
717,957

17,992
17,992533,912

1,838,882
1,858,093-575,090-1,724
3,120,161

1,838,882
1,858,093-548,678-1,724
3,146,572

645
3,344
3,990
3,124,151
3,842,109

1,310
2,927
4,237
3,150,810
3,684,722

(2) Consolidated quarterly statements of income and comprehensive income (three months ended June 30, 2023)
Consolidated quarterly statements of income(Yen thousand)Previous Q1 period (YTD)

Current Q1 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Jun 30, 2022)

To Jun 30, 2023)

Net sales

387,671

699,165

Cost of sales

268,413442,820Gross profit

119,257

256,344

Selling, general and administrative expenses

208,524

226,147

Operating income (loss)-89,267

30,196399

2Foreign exchange gains

5,689

2,635

Total non-operating income

6,089

2,637

548

-

Non-operating income
Interest income

Non-operating expenses
Loss on redemption of securities
Miscellaneous loss

9

-

557

-

Ordinary income (loss)-83,735

32,833

Income (Loss) before income taxes-83,735

32,833572

6,422

Total non-operating expenses

Income taxes - current
Income taxes - deferred

-

-

572

6,422

Income (Loss)-84,308

26,411

Income (Loss) attributable to owners of parent-84,308

26,411

Total income taxes

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

Current Q1 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Jun 30, 2022)

To Jun 30, 2023)

Income (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--84,308

26,411

1,178

664

3,467

-416

4,646

247

-79,661

26,658-79,661

26,658--

(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, 2024
(thousand yen)First Quarter
Apr 2023 - Jun 2023

Second Quarter
Jul 2023 - Sep 2023

Third Quarter
Oct 2023 - Dec 2023

Fourth Quarter
Jan 2024 - Mar 2024

Net sales

699,165---

Gross profit

256,344---

Operating income

30,196---

Ordinary income

32,833---

Income before incometaxes

32,833---

Net income

26,411---

Net income attributable toowners of the parent

26,411---

Comprehensive income

26,658---8.40 yen---

Net income per share

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

Total assets

3,684,722---

Net assets

3,015,810---

1,001.77 yen

-

-

-

Net assets per share

Fiscal year ended March 31, 2023
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

387,671537,683

654,471742,286

Gross profit

119,257

189,660

258,820

292,576

Operating income/loss (-)-89,267-13,573

41,88788,012

Ordinary income/loss (-)-83,735-10,570

35,81387,307

Income/loss (-) before
income taxes-83,735-10,570

35,81387,307

Net income/loss (-)-84,308-11,143

35,24082,780Net income/loss (-)
attributable to owners of
the parent-84,308-11,143

35,24082,780Comprehensive income-79,661-10,990

35,057

84,372-26.79 yen-3.54 yen

11.20 yen26.32 yen(thousand yen)

Net income/loss (-) per share

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

Total assets

3,463,998

3,485,580

3,557,274

3,842,109

Net assets

3,015,821

3,004,830

3,039,888

3,124,151

Net assets per share958.23 yen

954.74 yen

965.88 yen

993.30 yen-9-