(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 Six Months ended September 30, 2022 (Japanese GAAP)
November 10, 2022
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: November 11, 2022
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: No
Briefing session on the quarterly financial results: Yes
1. Consolidated financial results for the three months ended June 30, 2022 (April 1, 2022 through September 30, 2022)(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%
6 months ended September 30, 2022
925
34.0
△102
△94
△95
－
－
－
6 months ended September 30, 2021
690
29.5
△109
－
△109
－
△110
－
Reference) Comprehensive income: △90 million yen as of September 30, 2022; △108 million yen as of September 30, 2021

Net income per shareyen△30.33△34.956 months ended September 30, 2022
6 months ended September 30, 2021

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

Net assets

Equity ratio%
As of September 30, 2022
3,485
3,004
86.2
As of March 31, 2022
3,472
3,095
89.2
Reference) Shareholders' equity: 3,004 million yen as of September 30, 2022; 3,095 million yen as of March 31, 2022
Millions of yen

Millions of yen

2. Cash dividends
Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
Year ended March 2022
0.00
0.00
Year ending March 2023
0.00
Year ending March 2023 (Forecast)
0.00Note) Revision of dividends forecast during the period: None
1Q-end
yen
-

Total
yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2023 (April 1, 2022 through March 31, 2023)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
2,370
42.1
25
Note) Revision of forecasts during the period: None

Ordinary income% Millions of yen
25-1-(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
20
6.35

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 September 30, 2022

3,152,400 shares

As of March 31, 2022

3,152,400 shares

As of March 31, 2022

4,122 shares(2) Number of treasury shares at the end of the period
As of September 30, 2022

5,122 shares(3) Average number of shares issued during the period
6 months ended Sep 30, 2022

3,147,278 shares

6 months ended Sep 30, 2021

3,148,755 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) Financial position and operating results
During the six-month period ended September 30, 2022, Japan saw an explosive infections and convergence of theseventh wave of COVID-19 following the convergence of the sixth wave, and the Japanese economy showed signs ofgradual recovery due to efforts to ease restrictions on activities and revitalize socio-economic activities. Currently,
however, there are concerns about the impact of the sharp depreciation of the yen, rising prices, and other factors on
the economy. As for the future, it is essential to take the extremely difficult task of raising the level of socio-economic
activities while taking countermeasures against infection with the possibility of the eighth wave being pointed out. In
the world, the risk of economic recession has become apparent due to high raw material and food prices and supplyside constraints caused by the situation in Ukraine in addition to the effects of monetary tightening.
In the semiconductor industry to which our group belongs, the continued shortage of semiconductor supplies due tostrong demand in various industries is affecting the production of electronic equipment including automobiles that uses
semiconductors. In the medium term as well, demand is expected to grow for IoT where all things are connected to theInternet, 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, COVID-19 pandemic and climate change, and in realizing asafe and secure society.
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 assistance (safety) androbotics, 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 systemfrom algorithms and software to our strength, hardware, throughout the development 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 second quarter of the current fiscal year,
firstly, in the safety field, we earned recurring revenue from existing projects from the edge to the cloud, as well as new
licenses and professional services for new customers and new projects of existing customers. In addition, progress
was made on PoC projects such as traffic volume surveys for safety in a broader sense.
In the robotics field, while we identified and promoted PoC projects for customers, we conducted R&D for specific use
cases such as autonomous driving of electric wheelchairs and digital safety fences for human-robot collaboration, in
addition to efforts to improve product robustness. In addition, the vision system for cooperative robots by CambrianInc., a capital and business partner, was highly evaluated for its recognition stability under ambient light conditions andcompatibility with a wide range of picking items, and we made concrete progress in business projects aimed at reducing
labor and improving productivity for end customers in the manufacturing industry, particularly the automobile industry.
Furthermore, we exhibited at the "5th RoboDEX NAGOYA" (October 26 to 28), where we demonstrated an advanced
AMR (Autonomous Mobile Robot), which is designed to automate delivery in factories, in combination of an AMR
equipped with ZIA MOVE (SLAM) and robot picking using the Cambrian vision system.
In the amusement field, we continued shipping our image processing semiconductors, RS1, for mass production in
response to the large-scale order, and aimed to expand our share in the market segment where we can demonstrate-3-the superiority of this unique 2D/3D integrated chip.
In addition, we started recording running royalty income for ZIA DV720, a high-definition edge AI processor for TVS
REGZA's Regza series of TVs, from the second quarter.

With regard to business results for the six-month period ended September 30, 2022, in the product business, we
continued mass production shipments of the RS1 image processing semiconductor and shipped ZIA C3 kits for volume
production and Cambrian vision systems. In the IP core license business, we recorded recurring revenue in the areasof safety and robotics in addition to AI/GPU running royalty income. In the professional service business, we provided
contracted AI/GPU contracted development services.

As a result, we recorded net sales for the six-month ended September 30, 2022 of 925 million yen (up 34.0% from thesame period of the previous year), operating loss of 102 million yen (operating loss of 109 million yen for the same
period of the previous year), ordinary loss of 94 million yen (ordinary loss of 109 million yen for the same period of theprevious year) and net loss attributable to owners of the parent of 95 million yen (net loss of 110 million yen for thesame 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 67 million yen (67 million yen in the same period of the previous fiscal year), mainly due to therecording of new IP licenses and recurring revenue in the fields of safety and robotics in addition to AI/GPU runningroyalty income for digital equipment such as digital still cameras, 4K TVs and office automation equipment.
b) Product businessNet sales amounted to 798 million yen (502 million yen in the same period of the previous fiscal year) due to sales frommass production shipments of the RS1, volume shipments of the ZIA C3 kit for peripheral monitoring of commercial
vehicles and Cambrian vision systems.
c) Professional service businessNet sales amounted to 59 million yen (120 million yen in the same period of the previous fiscal year) due to a temporary
decrease in customers’ development projects.

A summary of results by field is as follows.
a) Safety field
Net sales amounted to 49 million yen (45 million yen in the same period of the previous year), mainly due to sales fromvolume shipments of the ZIA C3 kit for peripheral monitoring of commercial vehicles, professional services income, andrecurring income.
b) Robotics field
Net sales amounted to 31 million yen (106 million yen in the same period of the previous fiscal year) due to a temporary
decrease in customers’ development projects in the professional service business, despite the recording of revenue
mainly from the IP core license business and Cambrian vision systems.
c) Amusement field
Net sales amounted to 789 million yen (499 million yen in the same period of the previous year), mainly due to themass production shipments of RS1.
-4-d) Other
Net sales amounted to 55 million yen (38 million yen in the same period of the previous fiscal year), mainly due to therecording of AI/GPU running royalty income for digital equipment.

(2) Financial position
1) Overview of assets, liabilities and net assets(Assets)
Current assets at the end of the second quarter amounted to 3,033 million yen, up 249 million yen from the end of theprevious fiscal year mainly attributable to increases in accounts receivable and contract assets (up 198 million yen),
and raw materials and supplies (up 48 million yen). Noncurrent assets amounted to 452 million yen, down 235 million
yen from the end of the previous fiscal year mainly attributable to decreases in investment securities (down 199 million
yen) due to early redemption and other intangible assets (down 23 million yen).
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the second quarter amounted to 480 million yen, up 104 million
yen from the end of the previous fiscal year mainly attributable to an increase in accounts payable (up 122 million yen).
(Net assets)
Net assets at the end of the second quarter amounted to 3,004 million yen, down 90 million yen from the end of theprevious fiscal year mainly attributable to a decrease in retained earnings (down 95 million yen).
As a result, the equity ratio was 86.2%.

2) Overview of Cash FlowsThe balance of cash and cash equivalents at the end of the second quarter of the current consolidated fiscal year was
2,008 million yen.
Net cash used by operating activities was 199 million yen mainly attributable to positive factors such as an increase inaccounts payable - trade of 122 million yen and depreciation of 35 million yen, and negative factors such as an increasein accounts receivable and contract assets of 198 million yen and loss before income taxes of 94 million yen.
Net cash provided by investing activities was 194 million yen mainly attributable to proceeds from redemption of
investment securities of 200 million yen.
There were no cash flows in financing activities.

(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, 2023, announced
on May 13, 2022.
In the six-month period ended September 30, 2022, net sales grew mainly due to higher sales in the amusement field,
and the losses improved from the same period of the previous fiscal year.
From the third quarter onward, we expect to expand license revenue including which comes from OTA (Over the Air)and professional service revenue in the safety field, and product business including Cambrian vision systems andcamera modules for mass-production drones and professional service business in the robotics field, in addition to thecontinued 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
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
Provision for product warranties
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, 2022)(Yen thousand)Current Q2 period(As of Sep 30, 2022)

2,002,540
388,772
300,000
11,501
1,029
26,75653,4492,784,051

2,008,361
586,808
300,000
10,005430
75,05952,6983,033,365

39,51938,46450,38323,02573,40845,23425
45,259507,481
67,727575,209688,137
3,472,189

308,401
60,089368,490452,215
3,485,580

260,342
15,146
17,081
66,056358,626

382,733
11,33821,26047,206
462,539414
17,665
18,079376,706414
17,795
18,210480,749

1,838,882
1,858,093-597,659-1,615
3,097,700

1,838,882
1,858,093-693,111-1,6153,002,249-1,835-381-2,217
3,095,483
3,472,189

-204
2,785
2,581
3,004,830
3,485,580

(2) Consolidated quarterly statements of income and comprehensive income (six months ended September 30, 2022)
Consolidated quarterly statements of income(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Sep 30, 2021)

To Sep 30, 2022)

Net sales

690,532

925,354

Cost of sales

452,625

616,076

Gross profit

237,907309,278

Selling, general and administrative expenses

347,851

412,119

Operating loss

-109,944-102,840

1154

786

Foreign exchange gains

-

8,305

Miscellaneous income

241

-

1,396

9,092

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Foreign exchange losses

399

-

-

548

56

9

Loss on redemption of securities
Miscellaneous loss
Total non-operating expenses

456

557

Ordinary loss

-109,004-94,306

Loss before income taxes-109,004-94,306

1,145

1,145

Income taxes - current
Income taxes - deferred

-103

-

Total income taxes

1,041

1,145

Loss

-110,045-95,451

Loss attributable to owners of parent-100,045-95,451

Consolidated quarterly statements of comprehensive income(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Sep 30, 2021)

To Sep 30, 2022)

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--110,045-95,451

1,694

1,631

104

3,167

1,799

4,798

-108,246-90,652-108,246-90,652--

(3) Quarterly consolidated statements of cash flows(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2021

(From Apr 1, 2022

To Sep 30, 2021)

To Sep 30, 2022)

Cash flows from operating activities
Loss before income taxes-109,004-94,306

Depreciation

35,162

34,655

Share-based remuneration expenses

19,256

11,945-

4,179

Increase (decrease) in provision for product warranties
Interest income
Foreign exchange losses (gains)
Decrease (increase) in Accounts receivable-trade and contract assets-1,152-786-421-10,483-191,109-198,035

Decrease (increase) in inventories

9,960-46,208

Increase (decrease) in trade payables

79,877

122,391

Increase (decrease) in accounts payable - other-25,837

3,077

Other, net

50,179-24,926

Subtotal-133,088-198,497

Interest received
Income taxes paid
Income taxes refund
Subsidies received

1,246

1,039

-

-2,156

10,955

-

6,699

-

-114,187-199,615

Purchase of securities-300,000-300,000

Proceeds from redemption of securities

300,000

300,000

Purchase of investment securities-40,744--

200,711

Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from redemption of investment securities
Purchase of property, plant and equipment-7,689-4,871

Purchase of intangible assets

-

-580

Other, net

-

-307

-48,433

194,952

Purchase of treasury shares-90-

Net cash provided by (used in) financing activities

-90

-

931

10,483

Net cash provided by (used in) investing activities
Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents-161,780

5,820

Cash and cash equivalents at beginning of period

2,112,353

2,002,540

Cash and cash equivalents at end of period

1,950,573

2,008,361-8-

(4) 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.

-9-3. Other(1) Significant events on going-concern assumption
Not applicable(2) Recent quarterly business performance
Fiscal year ended March 31, 2023
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Apr 2022 - Jun 2022

Jul 2022 - Sep 2022

Oct 2022 - Dec 2022

Jan 2023 - Mar 2023

Net sales

387,671537,683--

Gross profit

119,257

189,660--

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

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

Loss (-) before incometaxes-83,735-10,570--

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

Net loss (-) attributable toowners of the parent-84,308-11,143--

Comprehensive income-79,661-10,990---26.79 yen-3.54 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--

Net assets

3,015,821

3,004,830--

Net assets per share958.23 yen

954.74 yen--

First Quarter
Apr 2021 - Jun 2021

Second Quarter
Jul 2021 - Sep 2021

Third Quarter
Oct 2021 - Dec 2021

Fourth Quarter
Jan 2022 - Mar 2022

Net sales

250,518

440,014589,060

388,398

Gross profit

69,584

168,322205,938

160,616

Operating income/loss (-)-95,864-14,080

18,023-34,699

Ordinary income/loss (-)-95,848-13,155

18,566-32,193

Income/loss (-) before
income taxes-95,848-13,155

18,895-65,836

Net income/loss (-)-96,369-13,675

18,374-65,526

Net income/loss (-)-96,369-13,675

18,374-65,526-95,826-12,419

20,628-67,017-30.60 yen-4.34 yen

5.83 yen-20.81 yen

Fiscal year ended March 31, 2022
(thousand yen)

attributable to owners of
the parent
Comprehensive income
Net income/loss (-) per share

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

Total assets

3,399,847

3,432,453

3,634,784

3,472,189

Net assets

3,154,649

3,141,872

3,162,500

3,095,483

1,001.85 yen

997.90 yen

1,004.45 yen

983.23 yen

Net assets per share- 10 -