This presentation 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.

IR Seminar for Personal Investors
August 28, 2021
Digital Media Professionals Inc.
Securities Code: 3652
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.

Agenda1. Outline of DMP
2. Medium-term Business Plan

© Digital Media Professionals Inc.

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1. Outline of DMP© Digital Media Professionals Inc.

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Company profile
In recent years, leveraging the experience and knowledge as one of the world's leading Graphics IP vendors
since the foundation, DMP is contributing to solving customer and social issues by providing end-to-end
integrated AI services from algorithm/software to hardware and from the edge to the cloud.
Company name

Digital Media Professionals Inc. (DMP)

IP core license business

Foundation

July 2002(Listed on the Mothers market of the Tokyo Stock
Exchange in June 2011)

・AI/GPU IP core license
・AI software license

Location

Nakano-ku, Tokyo, Japan

Representative

Chairman and CEO: Tatsuo Yamamoto
President and COO: Tsuyoshi Osawa

Capital1,838 million yen

Number of
consolidated
employees

65 (as of the end of March 2021)

Number ofpatents

35 cases

Consolidated
subsidiary

Digital Media Professionals Vietnam Company
LimitedProduct business・Graphics processing LSI for
amusement market
・AI FPGA module ・Vision system for collaborative robot

Professional service business・AI algorithm, computer-vision software contracted development
・FPGA/board contracted development
・Customer product/service development
support in safe driving assistance androbotics fields© Digital Media Professionals Inc.

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What is AI (Artificial Intelligence)
AI is a machine (information processing system) that has the same intellectual processing
capabilities as humans, including reasoning, recognition, and judgment.
ControlEngineering

Artificial Intelligence

Level 1

Level 2

Simple Control

Classical AI

Level 3
Machine Learning

Level 4
Deep Learning

Reference: Deep Learning for GENERAL : JDLA Certificate (G-Certificate) Official Textbook (Edited by Japan Deep Learning Association)© Digital Media Professionals Inc.

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Edge AI and cloud
Cloud: Create learned models by learning from large amounts of data using high computing power
Edge: High-speed, real-time inference processing (judgment, classification, prediction) of dataobtained in practical environments using learned models
Now and in the future

In the Past

© Digital Media Professionals Inc.

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DMP’s technology evolution

Technology Width⚫ Founded in 2002 as a university-launched venture company to show the world the high level2021
of Japan's CG processor technology. As one of the world's leading graphics IP vendors,
ZIA SLAM
DMP has developed and provided power-saving, compact, and high graphics performance IP.
ZIA MOVE2020
ZIA WIRE⚫ DMP has developed high performance graphics LSI incorporating its proprietary graphics IP2019 ZIA Cloud ZIA Showcase
SAFE
ZIA SAFE
technology.
ZIA
ISP
2018
AI
⚫ In 2016, based on GPU technologies accumulated since its founding, DMP developed2017 ZIA C3
ZIA™, a platform consisting of software, hardware, and services that integrates
2016 ZIA DV700
knowledge of AI and deep learning and entered the AI field.
ZIA Classifier
Now expanding AI portfolio.
2015
VF2

2008
NV7
2009
2006

2014

2010
Adopted forNintendo 3DS

Graphics LSI

2017
RS1

2016
M3000

Graphics IP

PICA® Graphics IP Core
received the Excellence in IP Prizeof 9th LSI IP Design Award in 2007

2002
Founded inJuly 20022010
Listed on the
Mothers of TSE
in June 2011

2020
Business and capital alliancewith UKC Holdings (currently
Restar Holdings) in 2014

© Digital Media Professionals Inc.

Business and capital Capital and businessalliance with Yamaha alliance with
Motor in 2019
Cambrian Inc in 2021

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DMP’s competitive advantage• Providing comprehensive AI solutions including hardware acceleration*• Differentiation points are optimization of acceleration performance, cost, and power consumption,
which are specialized for the customer domain*Hardware acceleration: Rewriting part or all of the algorithm or system description written in C language software into
hardware (RTL) and combining software and dedicated hardware to improve performance.

[Service function]
Strategy
formulationData
preparation• Confirmation of issues• Cost-benefit estimation• Determining datautilized• Amount / quality ofdata• Data preprocessing• Annotation

AI modelcreation andverification

Hardware• Learning model creation• Hardware acceleration• Model accuracy
performance, cost, power
verification
optimization• Mathematical optimization • Hardware agnostic• Confirming data flow
• Confirming Issues solving

Solution• Back end• Front end• UI / UX• General productization

DMP
AI development contract/ algorithm softwaredevelopment company
Source: DMP’s Industry Analysis (Reference: Nomura Securities Industry Research Report No. 242)

© Digital Media Professionals Inc.

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DMP’s revenue cycle• Providing added value and maximizing LTV*1 (Lifetime Value) of customers over the entire development life cycle(from planning to mass production) of customer products• By developing and providing standard products and services based on the technology and know-how cultivated incustomer projects, we will strive to respond flexibly and quickly to customer development and improve profitability.
Customerdevelopment
process

DMP
business

IP core licensebusiness

Survey / planning

PoC*2

Full-scale

development

development

Evaluation licenseprovision

Official licenseprovision
New IP creation

Professional
service business

LSI productbusiness

OperationMassproduction

Running royalty
Upgrade /maintenance

Subscription revenue

Consulting
AI development(learning /evaluation / tuning)

AI implementation /optimization forcustomer HWRe-learning / optimization

Product development (contract /in-house) (SoC / Module)

In-house product sales(SoC / Module)*1 LTV: Abbreviation for Lifetime Value. The profit earned from the beginning to the end of transactions with a customer (customer lifetime value)*2 PoC: Abbreviation for Proof of Concept. Verification and trial about feasibility before introducing a new concept, theory or principle in full scale© Digital Media Professionals Inc.

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Performance review• From GPU IP business mainly for game consoles at the time of listing, through LSI development for amusement, focusing on AI businessin recent years• Performance deteriorated in the fiscal year ended March 2021 due to the impacts of COVID-19 such as the slump in the amusement
machine market and restraint and postponement of AI development investment by some customers

Business performance*(¥M)

Net sales

1,044

Ordinary income
973
733

714
355

302

1,328
1,086

1,009

694

464
66

33

85

-36
-365
Mar-12Mar-13GPU IP businesscentered on game
consolesMar-14-265
Mar-15-193

Mar-16-262
Mar-17

Recorded up-front development
cost for next-generation
amusement LSI-361
Mar-18Mar-19Mar-20Mar-21

Contribution of next-generation amusement LSI tobusiness performance / Focus on AI business* Actual results on a non-consolidated basis through the fiscal year ended March 31, 2020, and full-year consolidated results for the fiscal year ended March 31, 2021

© Digital Media Professionals Inc.

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Fiscal Year Ending March 31, 2022

Business Forecast (at the end of the first quarter)
Q1 sales and large-scale order (to be delivered to the customer from the second through thefourth quarter) for the "RS1" image processing semiconductor for the amusement market
totals 1,150 million yen, which exceeds the initial RS1 sales forecast of 840 million yen.
FY 03/2021(Actual)(Unit: million yen)

FY 03/2022(Forecast)

Net sales

1,009

1,500

Operating income

-425

-250

Ordinary income

-361

-250

Net income attributable toowners of parent

-364

-252

⚫ Q1 net sales grew mainly due to the activation of the Robotics field, while profit (loss) level was almost the same as the same period
last year.

⚫ From Q2 onward, IP licenses and professional services for new customers/projects are expected to be active in the safety driving
assistance field. In the robotics field, an increase in business projects is expected to continue in the PoC and practical use stages.
⚫ There is no change to the full-year consolidated business forecast announced on May 14, 2021 at this moment. The impact of thelarge-scale order for RS1 on the consolidated business forecast will be closely examined, and if there is anything that needs to bedisclosed, it will be announced promptly.
© Digital Media Professionals Inc.

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2. Medium-term
Business Plan

© Digital Media Professionals Inc.

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Basic policy for medium-term business plan

Increasing momentum for society, politics, andthe business world to overcome major socialand environmental issues such as "declining
birthrate and aging population," "COVID-19,"and "climate change"

Social and environmental issues

We regard changes in the social environment as opportunities and strive to realize CSV (Creating Shared
Value) management, which will enable us to earn profits and increase our corporate value by contributing to theresolution of social and environmental issues.

Fiscal year ended March 2021
Performance deteriorated due to the stagnation of
the amusement market and the impact ofcustomers' restrained investment in development
caused by the COVID-19

Medium-term business goal

Focus on robotics and safe driving assistance fields
and achieve a V-shaped recovery
Net sales ¥2,500M, Operating income ¥200M in FY March 2024

© Digital Media Professionals Inc.

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Market trend• Robotics and safe driving assistance market show high growth rates• Although the amusement market continues to decline, it still has a scale of over 1 million units
Robotic Vehicle AI Related Computing Hardware Global Market*1
1,037(Billion Yen)

Worldwide shipments of collaborative robots*2(,000 unit)

45

CAGR 21%
21

CAGR 37%
62

2019 2020 2021 2022 2023 20242018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Dashcam with AI / communication function domestic market*3(,000 unit)

After market

OEM market

2,500

11,144

Pachinko

Pachislot

2,000

900

1,500

CAGR 31%
2,910

Amusement machine unit sales*4(,000 unit)

1,000

10,244

500
0
2017

2020

2025

2018

2019

2020
(Estimate)2021(Forecast)

Source: *1 Yole Développement, *2 Global Information, *3 DMP’s estimate based on various statistics, *4 Yano Research Institute, Estimate and forecast are from Daiwa Securities Report "Amusement Machine Market Outlook," March 30, 2021

© Digital Media Professionals Inc.

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Safe driving assistance field© Digital Media Professionals Inc.

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Strategy and numerical target
Aim to become a market leader by cultivating existing customers’ projects and developing new customers
through our competitive advantage of being able to provide integrated services from the cloud to the edge
• AI recognition model with a proven market record in near-miss image analysis and DMS• Comprehensive support from the edge (ZIA SAFE) to the cloud (ZIA Cloud SAFE)• Flexible response to customer needs with recurring businessmodels (running royalty and subscription license)

Safe driving assistance sales (Million Yen)
Recurring revenue• Provision of professional services tailored to customer projectrequirements

Professional service

289

Other

313

358
44

40

230
183

36

110
110

32

110

48

110

49

112

22

23

5

※ Driver Monitoring System

Mar-21© Digital Media Professionals Inc.

143

163

204

88
23
Mar-22Mar-23Mar-24Mar-25Mar-2616

Hiyari-hatto (near-miss) videos
Click the image for the video© Digital Media Professionals Inc.

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Robotics field© Digital Media Professionals Inc.

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Strategy and numerical target
Aim to expand share of vast market by acquiring PoC projects of customers with high potential followed by
maximizing full-scale development opportunities through enhancing the technology portfolio for robotics• Domain optimization with a comprehensive solution of algorithms, software and hardware• Differentiation by DMP 3D Perception (power, performance, cost)• Advanced AMR technology development through integration of automatic / autonomous driving and arm vision system• Providing RaaS utilizing ZIA Cloud technology
Robotics sales• Robot operating environment optimization by 3D simulation (digital twin)
Virtual space

20

Product/Module

IP core license

Professional service

Other

767

Digital twin
Real space587
AMR (Autonomous
Mobile Robot)

ZIA MOVEZIA SLAM

Collaborative robot arm
Vision system
13

RaaS(Robotics
as a Service)

487
374
14

166

Automatic / autonomous driving(UGV,AGV,PPM, Drone, etc.)

DMP 3D Perception

1,199(Million Yen)

145

8
0
Mar-21© Digital Media Professionals Inc.

262

17

431

19

387

315

15

346
316

131

35
63

46

84

109

141

Mar-22Mar-23Mar-24432
230
Mar-25Mar-26

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ZIA SLAM introduction video
Click the image for the video© Digital Media Professionals Inc.

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Autonomous grape harvesting test by Yamaha Motor
Click the image for the video© Digital Media Professionals Inc.

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Amusement business medium-term outlook• RS1 shipments in fiscal March 2022 are expected to exceed the initial plan due to the acquisition of large-scale orders,
although the impact of inventory retention in distribution channels has been factored in• Full-scale expansion of adoption in existing customer models and acquisition of new customers are expected in fiscal March2023 (confirmed)• While keeping a close eye on market volatility, we will continue to aim to expand our market share and enter new customers
in market segments where we can demonstrate the superiority of our unique 2D/3D integrated chips
RS1 sales (Million Yen)
1,500

1,500

TargetTargetMar-23Mar-24

1,150
840
646

ActualMar-21© Digital Media Professionals Inc.

Initial Plan

Estimate

Mar-2222

Towards sustainable growth• Aim for sustainable organic growth as a platformer that provides XaaS* in the focused areas to a wide rangeof customers by exerting the network effect through close collaboration with various platformers, service
providers and other ecosystems• Proactively consider non-organic growth through M&As and business alliances that contribute tocomplementing the competitiveness of our focused business areas
Safe driving
assistance

SaaS
Software as a Service

PaaS
Platform as a Service

IaaS
Infrastructure as a Service

ZIA Cloud SAFE

Robotics

Ecosystem

Robotics cloudservice

Cloud service (AWS, etc.）

ZIA SAFE

ZIA MOVEZIA SLAM

AI platformer
Standards body

Dashcam operation
management,
Insurance services, etc.

RaaS

SIer, Service provider

Robotics as a Service

Expansion to otherindustries
Near-miss service forconstruction andmedical, etc.

* XaaS: Abbreviation for X as a Service. Providing a variety of things as a service (through the cloud)© Digital Media Professionals Inc.

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Business performance target• Fiscal year ending March 2022
Net sales are expected to increase due to business expansion in the fields of safe driving assistance and robotics as well
as recovery in the amusement business and customer development investment, but operating income is expected to bein the red due to personnel investment related to strengthening the development system for sustainable growth.

• Fiscal year ending March 2024
Targeting net sales of 2,500 million yen and operating income of 200 million yen through expansion of
focused businesses.

• Fiscal year ending March 2026
Targeting sales of 1,600 million yen or more, excluding the amusement business and aiming to increase sales
further through horizontal development of the XaaS business.

(Million Yen)

March 2021
(Actual)March 2022
(Forecast)March 2023
(Target)March 2024
(Target)Net sales

1,009

1,500

2,250

2,500

Operating income

▲425

▲250

50

200

Ordinary Income

▲361

▲250

50

200

© Digital Media Professionals Inc.

CAGR
(21/3-24/3)
35%

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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.

© Digital Media Professionals Inc.

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