(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, 2021 (Japanese GAAP)
August 11, 2021
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 12, 2021
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, 2021 (April 1, 2021 through June 30, 2021)(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, 2021
250
9.2
△95
△95
△96
－
－
－
3 months ended June 30, 2020
229
－
△114
－
△93
－
△93
－
Reference) Comprehensive income: △95 million yen as of June 30, 2021; △93 million yen as of June 30, 2020

Net income per shareyen△30.60△29.953 months ended June 30, 2021
3 months ended June 30, 2020

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

Net assets

Millions of yen

Equity ratio

Millions of yen

As of June 30, 2021
3,399
3,154
As of March 31, 2021
3,477
3,250
Reference) Shareholders' equity: 3,154 million yen as of June 30, 2021; 3,250 million yen as of March 31, 2021

%
92.8
93.5

2. Cash dividends
1Q-endyen-

Year ended March 2021
Year ending March 2022

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 2022 (Forecast)

Total

0.00

yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2021 (April 1, 2021 through March 31, 2022)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
1,500
48.5
△250
Note) Revision of forecasts during the period: None

Ordinary income% Millions of yen
△250

-1-

(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
△252
△80.02

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: Yes(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, 2021

3,152,400 shares

As of March 31, 2021

3,152,400 shares

As of March 31, 2021

3,189 shares(2) Number of treasury shares at the end of the period
As of June 30, 2021

3,589 shares(3) Average number of shares issued during the period
3 months ended June 30, 2021

3,148,921 shares

3 months ended June 30, 2020

3,130,148 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-

Qualitative information on quarterly financial results(1) Operating results
During the first quarter of the fiscal year ending March 31, 2022, the Japanese economy continued to face a difficult
situation overall due to the prolonged spread of COVID-19 and the resulting state of emergency declaration and focusedanti-infection measures, despite a sign of recovery in corporate earnings. In the world, full-scale economic activities
have resumed with the increase in vaccination rates, mainly in Europe and the United States. However, in areas where
vaccination rates are low, economic activities are greatly restricted due to the rapid increase in the number of infected
people, and it will still take time for the economy to recover from the damage caused by the new coronavirus infection.
As for the future, it is imperative to steer an extremely difficult course to raise the level of economic activities while
taking measures to prevent the spread of the infection and to prevent serious illnesses by accelerating vaccination andthe spread of therapeutic drugs.
In the semiconductor industry, to which our group belongs, shortages in the supply of semiconductors due to insufficient
production capacity at 8-inch foundries and strong stay-at-home demand continued, which affected the production ofsome electronic equipment. In the medium term as well, demand is expected to grow for IoT where all things areconnected 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 in solving social issues, including current difficulties, and in realizing a safe and secure society
are expected.
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 support 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, based on our integrated development system from algorithms
and software to our strength, hardware, throughout the development lifecycle of customer products and services fromthe planning stage to mass production.

As for specific initiatives and achievements in our focus fields during the first quarter of the current fiscal year, firstly, inthe safe driving assistance field, we unveiled ZIA™ Showcase, a platform for demonstrating and benchmarking ourlatest edge AI recognition models. By accessing AI recognition models supported by ZIA™ Showcase and multiple
hardware, customers can easily evaluate and verify the optimal combination of AI recognition models and hardware
using their own data sets online and in real time, which is expected to improve the efficiency of product development.
In addition to earning recurring revenue from existing projects, our products and services have been adopted by new
customers and new projects of existing customers. Furthermore, ZIA™ C3 module has been adopted in mass
production for perimeter monitoring of commercial vehicles following the previous fiscal year.
In the robotics field, we have enhanced our "ZIA™ series" portfolio by developing ZIA™ MOVE, an integrated software
platform that encompasses ZIA™ SLAM, a high-precision SLAM software, and extends its functions to perception,
judgment, and operation required for automatic and autonomous driving of robotic vehicles, and ZIA™ Wire, an AI
recognition model for detecting power lines, fences, and other wires for drones and unmanned robots, as well as an
upgraded version of ZIA™ ISP, an image signal processor (ISP) core that supports the high dynamic range (HDR)
function of image sensors. In addition, PoC projects for several customers are in progress. Furthermore, we started themarketing of vision systems for collaborative robots from Cambrian, our capital and business partner.
-3-

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. In the IP core license business, we acquired new licenses forthe robotics field and recorded recurring revenue in the safe driving assistance field. In the professional service
business, contracted AI development services, mainly for the robotics field, became more active, although contracted
income from the NEDO project was lost.

As a result, we recorded net sales for the first quarter of the current fiscal year of 250 million yen (up 9.2% from thesame period of the previous year), operating loss of 95 million yen (operating loss of 114 million yen for the same periodof the previous year), ordinary loss of 95 million yen (ordinary loss of 93 million yen for the same period of the previousyear) due to the absence of 21 million yen in subsidy income from the NEDO project, which was recorded as nonoperating income in the same period of the previous year, and net loss attributable to owners of parent of 95 million
yen (net loss of 93 million yen for the 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 businessIn addition to GPU running royalty income for digital equipment such as digital still cameras and office automationequipment, new license income in the robotics field and recurring income in the safe driving assistance field wererecorded. However, due to a decrease in GPU-related maintenance and support income, net sales decreased to 25
million yen (28 million yen in the same period of the previous fiscal year).
b) Product businessNet sales amounted to 171 million yen (166 million yen in the same period of the previous fiscal year) due to sales frommass production shipments of the RS1 and sales of camera modules for drones. As for this business, from the fiscal
year ending March 31, 2022, the name "LSI product business" has been changed to "product business."c) Professional service businessNet sales amounted to 53 million yen (34 million yen in the same period of the previous fiscal year), mainly due to theincreased activities in AI contracted development projects for the robotics field, despite the absence of contracted
income from NEDO that was recorded in the same period of the previous fiscal year.

A summary of results by field is as follows.
a) Safe driving assistance field
Net sales amounted to 3 million yen (3 million yen in the same period of the previous year), mainly due to recurringincome (2 million yen, 0 in the same period of the previous year).
b) Robotics field
Net sales amounted to 57 million yen (31 million yen in the same period of the previous fiscal year) due to new license
incomes and increased activities in AI contract development projects.
c) Amusement field
Net sales amounted to 171 million yen (166 million yen in the same period of the previous year) due to mass production
shipment of RS1.
d) Other
Net sales amounted to 18 million yen (28 million yen in the same period of the previous fiscal year) due to the absence-4-

of contracted income from the NEDO, which was recorded in the same period of the previous fiscal year, despite therecording of GPU running royalty income for digital equipment.

(2) Financial position(Assets)
Current assets at the end of the first quarter amounted to 2,636 million yen, down 100 million yen from the end of theprevious fiscal year mainly attributable to decreases in accounts receivable and contract assets (down 77 million yen)and other current assets (down 46 million yen). Noncurrent assets amounted to 763 million yen, up 22 million yen fromthe end of the previous fiscal year mainly attributable to an increase in investment securities (up 41 million yen) mainly
due to the acquisition of a portion of the preferred stock issued by Cambrian Inc. in Delaware, U.S., on June 14, 2021
and a decrease of 13 million yen in software.
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the first quarter amounted to 245 million yen, up 18 million yen
from the end of the previous fiscal year mainly attributable to an increase in accounts payable (up 33 million yen).
(Net assets)
Net assets at the end of the first quarter amounted to 3,154 million yen, down 95 million yen from the end of the previous
fiscal year mainly attributable to a decrease in retained earnings (down 96 million yen).
As a result, the equity ratio was 92.8%.

(3) Consolidated financial forecasts and other forward-looking statements
In the first quarter of the current fiscal year, net sales grew mainly due to the revitalization of the robotics field, and theloss level was almost the same as the same period of the previous year.
From the second quarter onward, as described in the "Notice of Large-scale Order" disclosed today, we have received
a large-scale order of 979 million yen for "RS1" image processing semiconductor for the amusement market, which will
be delivered to the customer from the second to the fourth quarter of the current fiscal year. This order amount plus thesales of 171 million yen for RS1 in the first quarter totals 1,150 million yen, exceeding the sales of 840 million yen for
RS1, which was included in the consolidated business forecast for the fiscal year ending March 31, 2022 announced
on May 14, 2021. In addition, revenues from licenses and professional services for new projects in the safe driving
assistance field, and AI-related revenue in the robotics field are expected to increase.
At this moment, there is no change to the full-year consolidated earnings forecast for the fiscal year ending March 31,
2022 announced on May 14, 2021. The impact of the order of RS1 on the consolidated earnings forecast for the current
fiscal year will be closely examined, and if there is anything that needs to be disclosed, it will be announced promptly.
Actual performance may differ significantly from the forecast figures due to various factors.

-5-

2. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Accounts receivable - trade and contract assets
Securities
Work in process
Raw materials and supplies
Consumption taxes receivable
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
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, 2021)(Yen thousand)Current Q1 period(As of Jun 30, 2021)

2,066,483
157,606
345,870
7,630
44,437
11,798102,832
2,736,659

2,075,091
79,980345,831
4,173
63,291
11,79956,3782,636,547

42,652

44,319104,54525
104,570

91,00425
91,030500,630
92,789593,419
740,6433,477,303

541,665
86,284
627,950
763,300
3,399,847

132,333
11,83464,065208,233

165,658
5,880
54,786226,324

1,452
17,40818,860227,094

1,400
17,472
18,873245,198

1,838,882
1,858,093-440,462-1,5253,254,988

1,838,882
1,858,093-536,563-1,525
3,158,886-4,677-102-4,7793,250,208
3,477,303-4,33396-4,237
3,154,649
3,399,847

(2) Consolidated quarterly statements of income and comprehensive income (three months ended June 30, 2021)
Consolidated quarterly statements of income(Yen thousand)Previous Q1 period (YTD)

Current Q1 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Jun 30, 2020)

To Jun 30, 2021)

Net sales

229,456

250,518

Cost of sales

158,998

180,933

Gross profit

70,45869,584

Selling, general and administrative expenses

185,166

165,449

Operating loss

-114,708-95,864

Interest income

570

451

Subsidy income

21,600-Non-operating income

Miscellaneous income
Total non-operating income

4

162

22,174

614

706

642

Non-operating expenses
Foreign exchange losses
Miscellaneous loss

0

56

707

598

Ordinary loss

-93,240-95,848

Loss before income taxes-93,240-95,848572

572

Total non-operating expenses

Income taxes - current
Income taxes - deferred

-55

-51

Total income taxes

516

520

Loss

-93,757-96,369

Loss attributable to owners of parent-93,757-96,369

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

Current Q1 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Jun 30, 2020)

To Jun 30, 2021)

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 owners ofparentComprehensive income attributable to noncontrolling interests-7--93,757-96,369

90

344

-

198

90

542

-93,666-95,826-93,666-95,826--