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.

MAKING THE IMAGE INTELLIGENT

1st Quarter ended June 30, 2023

Financial Results Supplementary Information

Digital Media Professionals Inc.
August 9, 2023
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.

Table of contents
Company Profile・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3

Our Purpose・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4
1st Quarter ended June 30, 2023 Results Highlights

Business Highlights・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
P/L・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6
Net Sales by Business and Field・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7
B/S・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8
1st Quarter ended June 30, 2023 Topics - General・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
1st Quarter ended June 30, 2023 Topics - Cambrian Vision System・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
Fiscal Year Ending March 31, 2024 Business Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11M A KING T H E IM A GE INT E LLIGE NT

2

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 in June
2011, Moved to TSE Growth market in April 2022)

Location

Nakano-ku, Tokyo, Japan

Representative

Chairman, President and CEO: Tatsuo Yamamoto

Capital1,838 million yen

Number ofconsolidated
employees

65 (as of March 31, 2023)

Number ofpatents

35 cases

Consolidated
subsidiary

Digital Media Professionals Vietnam CompanyLimited

M A KING T H E IM A GE INT E LLIGE NT

Product business・Image processing LSI for amusement market
・Vision system for collaborative robot
・Camera module for drone

Professional service business・AI algorithm/computer vision software contracted development
・FPGA/Board contracted development
・Customer product/service support related tosafe driving assistance system and robotics

3Our Purpose

Making the Image Intelligent
Making画像を知能化する
the Image Intelligent"To"Tocreate
createinnovative
innovativeproducts
productsandandservices
servicesthat
thatharness
harnessthe
thepower
powerofofimage
imageintelligence
intelligencetotosolve
solve
real-world
real-worldproblems
problemsand
anddrive
drivevalue
valueforforourourstakeholders.“
stakeholders.”
画像インテリジェンスの力で現実世界の問題を解決し、ステークホルダーに価値をもたらす革新的な製品とサービスを創造する

M A KING T H E IM A GE INT E LLIGE NT© Digital Media Professionals Inc.

44

1st Quarter ended June 30, 2023

Business Highlights• First quarter sales reached a record high.
Achieved positive operating income, ordinary income, and net income attributable to owners of the parent• Significant growth in sales in the amusement field, mainly due to the brisk pachislot market, including smart pachislot
Sales of professional service for the safety and robotics fields are expected to increase from the second quarter
onward.

Overall

Sales by businessNet sales

IP Core License

SafetyRobotics¥ 699M

¥ 43M

¥ 6M

¥ 23M

（YoY* +80％）
Ordinary income¥ 32M（YoY ¥ +116M）（YoY +34%）

Sales by field（YoY -76%）（YoY +379%）

AmusementOther¥ 630M

¥ 38MProduct¥ 652M

（YoY +90%）
Professional service（YoY +90%）（YoY +60%）¥ 3M（YoY -72%）* YoY :Year on YearM A KING T H E IM A GE INT E LLIGE NT5

1st Quarter ended June 30, 2023

Results Highlights: P/L
Sales increased significantly, mainly due to growth in the amusement field.
Positive earnings achieved(Unit: million yen)

1st Quarter ended June30, 2022

1st Quarter ended June30, 2023

Amount change

Net sales

387699+311

Operating income△8930+119

Ordinaryincome△8332+116

Net income
attributable toowners of parent△8426+110⚫ Net sales increased by 80.3% due to significant growth in product business such as Cambrian Vision
System in addition to "RS1" image processing semiconductors for the amusement market⚫ Operating income, ordinary income, and net income attributable to owners of the parent also returned
to profitability

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1st Quarter ended June 30, 2023

Results Highlights: Net Sales by Business and Field●Sales by business●Sales by field

IP core license business ¥43 million

Same period¥32 million
last year●Recorded AI/GPU running royalties for digital equipment, recurring revenues
in safety/robotics fields, maintenance/support revenues, etc.

Product business¥652 million

Same period¥343 million
last year●Recorded sales from volume shipments of RS1 and Cambrian Vision Systems

Professional servicebusiness¥3 million

Same period¥11 million
last year●Recorded revenues from AI/GPU contracted development services●Larger part of revenues from professional services for safety and robotics
fields, which have been underway since the first quarter, will be recorded
from the second quarter onward

Safety field¥6 million

Same period¥26 million
last year●Recorded recurring revenues (running royalties and subscription fees) andmaintenance/support revenues related to dashcams

Robotics field¥23 million

Same period
last year¥4 million●Recorded sales of products such as Cambrian Vision Systems andprofessional services

Amusement field¥630 million

Same period¥332 million
last year●Recorded sales of RS1 for mass production

Other¥38 million

Same period¥24 million
last year●Recorded AI/GPU running royalties and maintenance/support revenues fordigital equipment

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1st Quarter ended June 30, 2023

Results Highlights: B/SEquity ratio remains high at 85.5%
End of March2023

End of June
2023

AmountchangeMajor factors

Current assets

3,683

3,533

-150

Cash and deposits +195, Accounts
receivable - trade and contract assets -354

Non-current assets

158

151

-6

3,842

3,684

-157

Current liabilities

700515-184

Non-current liabilities

1717+0Total liabilities

717533-184

Total net assets

3,124

3,150+26

Total liabilities andnet assets

3,842

3,684-157(Unit: million yen)

Total assets

M A KING T H E IM A GE INT E LLIGE NT

Property, plant and equipment -3
Software -3

Accounts payable - trade -175

Retained earnings +26

8

1st Quarter ended June 30, 2023

Topics - General
SafetyRobotics
Contribute to labor saving in themanufacturing and transportation industries

Realize a safe and secure society⚫ Recurring revenues from existing projects from edge to cloud⚫ Promoted activities to acquire new licenses for autonomous
robots through development of demo units⚫ Expanded Cambrian Vision System applications/ecosystem⚫ ZIA SAFE was adopted as the driver monitoring functionof DENSO TEN's safe driving management telematics
service "Offseg"

Amusement

Solvingsocial/customer
problems throughimage intelligence

Realize both beautiful video expression
and reduction of machine chassis cost
⚫ Continued mass production shipments of our image processing
semiconductor, RS1, for pachislot machines, including smart pachislots
with strong utilization and pachinko machines⚫ Expand our share and acquire new customers in the market segment
where we can demonstrate the superiority of our unique 2D/3D
integrated chip

M A KING T H E IM A GE INT E LLIGE NT• Completed connections to major domestic collaborative robots
in addition to overseas ones already connected• Enabled picking of transparent objects for pharmaceuticals,cosmetics, and food industries using industrial robots withhigh throughput

AI/GPU IP

Provide small size, low power, andhigh-performance IPs optimized for customer SoCs
⚫ Obtained stable running royalties from existing IPs/customers and progressed deals for new projects⚫ Development and performance verification of ZIA A3000,
an AI IP processor that significantly exceeds
the performance of current products

9

1st Quarter ended June 30, 2023

Topics - Cambrian Vision System
Expanded business opportunities and drove application development leveraging high-speed/
high-precision recognition and ambient light robustness⚫ Expanded and harvested business opportunities in the manufacturing industry
Progress in product shipments and business projects for labor saving and productivity improvement at end customers in the manufacturingindustry, particularly in the automotive industry⚫ Expanded ecosystemCompleted connections to domestic robot arms (collaborative robots) of FANUC and DENSO WAVE, in addition to the already connected
overseas robot arms

⚫ Expanded applications
Cambrian’s ultra-high-speed, high-precision recognition capability enables faster robot picking operations using industrial robots (FANUC’s LR
Mate series) -> Overwhelmingly broadens the range of applications for AI vision systems, such as for food, pharmaceutical, and cosmetic
industries and for industrial robots with larger market size
Demonstration of automated bottle feeding by TOKUNAGA Corporation using Cambrian Vision System and FANUC’s industrial robot

Bulk vacuum picking of (semi-)transparent bottle

M A KING T H E IM A GE INT E LLIGE NT

Place on conveyor belt

10

Fiscal Year Ending March 31, 2024

Business Forecast
No change in the full-year earnings forecast announced on May 12, 2023
(Unit: million yen)

Net sales

FY 03/2023(Actual)

FY 03/2024(Forecast)

2,322

2,600

Operating income

27150

Ordinary income

28150

Net income attributable toowners of parent

22120⚫ In the first quarter, net sales reached a record high and earnings were positive, driven primarily by strong sales in theamusement 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 shipmentsof "RS1" image processing semiconductors for the amusement market.

M A KING T H E IM A GE INT E LLIGE NT

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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.

M A KING T H E IM A GE INT E LLIGE NT12