(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, 2023 (Japanese GAAP)
November 13, 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.
Tel. (03) 6454 - 0450
Scheduled date of filing Quarterly Securities Report: November 14, 2023
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 September 30, 2023 (April 1, 2023 through September 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%
6 months ended September 30, 2023
1,442
55.8
134
140
121
－
－
－
6 months ended September 30, 2022
925
34.0
△102
－
△94
－
△95
－
Reference) Comprehensive income: 121 million yen as of September 30, 2023; △90 million yen as of September 30, 2022

Net income per share
yen
38.48
△30.336 months ended September 30, 2023
6 months ended September 30, 2022

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

Net assets

Equity ratio%
As of September 30, 2023
3,691
3,245
87.9
As of March 31, 2023
3,842
3,124
81.3
Reference) Shareholders' equity: 3,245 million yen as of September 30, 2023; 3,124 million yen as of March 31, 2023
Millions of yen

Millions of yen

2. Cash dividends
Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
Year ended March 2023
0.00
0.00
Year ending March 2024
0.00
Year ending March 2024 (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, 2023 through March 31, 2024)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
2,950
27.0
240
Note) Revision of forecasts during the period: Yes

Ordinary income% Millions of yen
786.9
240

-1-

(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
732.9
200
786.2
63.59

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, 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 September 30, 2023

7,240 shares(3) Average number of shares issued during the period
6 months ended Sep 30, 2023

3,145,209 shares

6 months ended Sep 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) Financial position and operating results
During the six-month period ended September 30, 2023, the Japanese economy experienced a moderate recovery
supported by revitalized socioeconomic activities, partly due to the change in the classification of new coronavirus
infections from category 2 to category 5 on May 8. However, the impacts of the continued weak yen and rising prices
and energy costs on the economy and people's lives became apparent. The global economy also showed signs ofrecovery in general, but in addition to the effects of monetary tightening, downside risks such as concerns about the
future of the Chinese economy and the current increase in geopolitical risks 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 second quarter of the current fiscal year,
firstly, in the safety field, we carried out professional services for existing customers for safe driving assistance andearned recurring revenue from existing projects from the edge to the cloud. In addition, we have started collaboration
with THine Electronics Inc. to realize an edge AI camera solution. By combining the THine's EdgeAI-LinkTM edge AI
solution with our high-precision image recognition AI software, we aim to contribute to next-generation smart BEMS
(Building Energy Management Systems), labor and manpower saving in office/facility monitoring and infrastructure
inspections, and DXing of industrial processes such as factories through superior scene recognition capabilities.
In the robotics field, in addition to carrying out professional services for existing customers, we have promoted activities
to acquire new licenses for autonomous robots through the development of demonstration models and have achieved
positive results. In the business of vision systems for picking robots by Cambrian Inc., a capital and business partner,
we made progress in product shipments and business projects aimed at reducing labor and improving productivity forend customers in the manufacturing industry, particularly the automotive industry by taking advantage of the strengths
in recognition accuracy for transparent and glossy parts and robustness against environmental changes, such as
ambient light. We also saw active business progress with customers in the pharmaceuticals, cosmetics, and foodindustries.
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. We continue to aim to
expand our share in the market segment where we can demonstrate the superiority of this unique 2D/3D integrated-3-

chip.

With regard to business results for the six-month period ended September 30, 2023, in the product business, we
continued mass production shipments of the RS1 image processing semiconductor and shipped Cambrian Vision
Systems. In the IP core license business, we recorded AI/GPU running royalty income, recurring revenue in the safety
and robotics fields, and maintenance/support revenues. In the professional service business, we provided AI/GPU
contracted development services.

As a result, we recorded net sales for the six-month ended September 30, 2023 of 1,442 million yen (up 55.8% fromthe same period of the previous year), operating income of 134 million yen (operating loss of 102 million yen for thesame period of the previous year), ordinary income of 140 million yen (ordinary loss of 94 million yen for the same
period of the previous year) and net income attributable to owners of the parent of 121 million yen (net loss of 95 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 businessNet sales amounted to 94 million yen (67 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 AI/GPU
running royalty income for digital equipment such as digital still cameras, 4K TVs and office automation equipment.
b) Product businessNet sales amounted to 1,301 million yen (798 million yen in the same period of the previous fiscal year) due to sales
from Cambrian Vision Systems in addition to the strong mass production shipments of the RS1.
c) Professional service businessNet sales amounted to 46 million yen (59 million yen in the same period of the previous fiscal year) for providing AI
contracted development services in the safety and robotics fields and GPU contracted development services.

A summary of results by field is as follows.
a) Safety field
Net sales amounted to 34 million yen (49 million yen in the same period of the previous year), mainly due to therecording of recurring income and maintenance/support revenues in the IP core license business and providing
professional services.
b) Robotics field
Net sales amounted to 69 million yen (31 million yen in the same period of the previous fiscal year) mainly due to therecording of sales of Cambrian Vision Systems in the product business and providing professional services.
c) Amusement field
Net sales amounted to 1,257 million yen (789 million yen in the same period of the previous year), mainly due to themass production shipments of RS1.
d) Other
Net sales amounted to 80 million yen (55 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
1) Overview of assets, liabilities and net assets(Assets)
Current assets at the end of the second quarter amounted to 3,347 million yen, down 336 million yen from the end of
the previous fiscal year mainly attributable to a decrease in accounts receivable and contract assets (down 429 million
yen) and an increase in cash and deposits (up 108 million yen). Noncurrent assets amounted to 344 million yen, up
186 million yen from the end of the previous fiscal year mainly attributable to an increase in investment securities (up199 million yen) included in the investments and other assets.
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the second quarter amounted to 446 million yen, down 271
million yen from the end of the previous fiscal year mainly attributable to a decrease in accounts payable (down 291
million yen).
(Net assets)
Net assets at the end of the second quarter amounted to 3,245 million yen, up 121 million yen from the end of theprevious fiscal year mainly attributable to an increase in retained earnings (up 121 million yen).
As a result, the equity ratio was 87.9%.

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
2,544 million yen.
Net cash provided by operating activities was 320 million yen mainly attributable to positive factors such as a decreasein accounts receivable and contract assets of 429 million yen and income before income taxes of 140 million yen, andnegative factors such as a decrease in accounts payable - trade of 291 million yen.
Net cash used in investing activities was 218 million yen mainly attributable to the purchase of investment securities of
202 million yen.
Net cash used in financing activities was 0 million yen mainly attributable to the purchase of treasury shares of 0 million
yen.

(3) Consolidated financial forecasts and other forward-looking statements
With regard to the consolidated financial forecasts for the fiscal year ending March 31, 2024, we have revised theconsolidated financial forecast announced in the "Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2023" dated May 12, 2023. Please refer to the "Notice of Revision of Forecast of Financial Results (Upward
Revision)" separately announced today for details of the revision and the reasons for the revision.

-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 Q2 period(As of Sep 30, 2023)

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

2,544,459
403,707300,000
37,187
26,73634,947
3,347,038

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

57,01816,801
270,606
344,426
3,691,464

553,241
23,737
17,351
105,702700,031

262,234
33,052
11,533
121,357
428,176

17,926
17,926
717,957

18,05818,058446,234

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

1,838,882
1,858,093-454,064-2,0163,240,895

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

1,576
2,757
4,334
3,245,229
3,691,464

(2) Consolidated quarterly statements of income and comprehensive income (six months ended September 30, 2023)
Consolidated quarterly statements of income(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Sep 30, 2022)

To Sep 30, 2023)

Net sales

925,354

1,442,096

Cost of sales

616,076

843,278

Gross profit

309,278

598,817

Selling, general and administrative expenses

412,119464,031

Operating income/loss (-)-102,840

134,786

Non-operating income
Interest income

786

172

Foreign exchange gains

8,305

5,213

Total non-operating income

9,092

5,385

548

-

Non-operating expenses
Loss on redemption of securities
Miscellaneous loss

9

1

557

1

Ordinary income/loss (-)-94,306

140,170

Income/Loss (-) before income taxes-94,306

140,170

1,145

19,145

Total non-operating expenses

Income taxes - current
Total income taxes

1,145

19,145

Income/Loss (-)-95,451

121,025

Income/Loss (-) attributable to owners of parent-95,451

121,025

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

Current Q2 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Sep 30, 2022)

To Sep 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--95,451

121,025

1,631

930

3,167

-586

4,798

343

-90,652

121,369-90,652

121,369--

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

Current Q2 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Sep 30, 2022)

To Sep 30, 2023)

Cash flows from operating activities
Income/Loss (-) before income taxes-94,306

140,170

Depreciation

34,655

19,791

Share-based remuneration expenses

11,945

6,504

Increase/decrease (-) in provision for product warranties

4,179-5,818Interest income

-786

-172

Foreign exchange losses/gains (-)
Decrease/Increase (-) in Accounts receivable-trade and contract
assetsDecrease/Increase (-) in inventories-10,483-7,031-198,035

429,811-46,208

1,942

Increase/Decrease (-) in trade payables

122,391-291,006

Increase/Decrease (-) in accounts payable - other

3,077

28,568Other, net-24,926

7,283

Subtotal-198,497

330,043

Interest received

1,039

126

Income taxes paid

-2,156-10,114-199,615

320,055

Purchase of securities-300,000-300,000

Proceeds from redemption of securities

300,000

300,000--202,122

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

Purchase of investment securities
Proceeds from redemption of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities

200,711--4,871-14,970-580-1,240-307-

194,952-218,332--291

Cash flows from financing activities
Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase/decrease (-) in cash and cash equivalents

-

-291

10,483

7,031

5,820

108,463

Cash and cash equivalents at beginning of period

2,002,540

2,435,996

Cash and cash equivalents at end of period

2,008,361

2,544,459-8-

(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.

(Important subsequent events)
At the Board of Directors meeting held on November 13, 2023, the Company resolved to make an additional
investment in Cambrian Inc. of Delaware, USA (hereinafter referred to as "Cambrian") as described below.

1) Reason for additional investment
The Company entered into an exclusive distributorship agreement (April 29, 2021) and a business allianceagreement (May 3, 2021) with Cambrian and acquired its Series Seed Preferred stock (paid-in amount of
US$370,000) in June 2021.
In connection with Cambrian's recent issuance of Series Seed Plus Preferred Stock, the Company has decided toadditionally acquire a portion of the Preferred Stock in order to financially contribute to improving Cambrian's
development capabilities and strengthening the competitiveness of its products and technologies and to further
strengthen the strategic partnership with Cambrian.

2) Acquisition price, etc. of the other party's shares to be additionally acquired
The Company has decided to acquire a portion of the Series Seed Plus Preferred Stock issued by Cambrian as
follows. The acquisition price was calculated and determined in consideration of Cambrian's business plan and otherfactors.
Amount to be paid: US$480,000
Scheduled acquisition date: End of November 2023

-9-

3. Other(1) Significant events on going-concern assumption
Not applicable(2) Recent quarterly business performance
Fiscal year ended March 31, 2024
First Quarter
Apr 2023 - Jun 2023

Second Quarter
Jul 2023 - Sep 2023

Net sales

699,165

742,931--

Gross profit

256,344

342,473--

Operating income

30,196

104,590--

Ordinary income

32,833

107,336--

Income before incometaxes

32,833

107,336--

Net income

26,411

94,614--

Net income attributable toowners of the parent

26,411

94,614--Comprehensive income

26,65894,710--8.40 yen

30.08 yen--(thousand yen)

Net income per share

End of 1st QuarterEnd of 2nd Quarter

Third Quarter
Oct 2023 - Dec 2023

Fourth Quarter
Jan 2024 - Mar 2024

End of 3rd QuarterEnd of 4th Quarter

Total assets

3,684,722

3,691,464--

Net assets

3,150,810

3,245,229--

1,001.77 yen

1,031.82 yen--

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

Net assets per share

Fiscal year ended March 31, 2023
(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- 10 -