Slide 1: Results Briefing, Fiscal Year Ended March 31, 2016
Fiscal Year Ended March 31, 2016 Results Briefing Digital Media Professionals Inc. May 17, 2016 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. Pleas
Slide 2: Explanation of Results, Fiscal Year Ended March 31, 2016
1 Explanation of Results, Fiscal Year Ended March 31, 2016 2 Progress Report on Medium-Term Management Plan 3 Performance Forecast, Fiscal Year Ending March 31, 2017 Reference materials: 4 Medium-Term Management Plan (Fiscal Year Ended March 31, 2014 - Fiscal Year Ending March 31, 2019) Copyright (C
Slide 3: Explanation of Results, Fiscal Year Ended March 31, 2016
1 Explanation of Results, Fiscal Year Ended March 31, 2016 2 Progress Report on Medium-Term Management Plan 3 Performance Forecast, Fiscal Year Ending March 31, 2017 Reference materials: 4 Medium-Term Management Plan (Fiscal Year Ended March 31, 2014 - Fiscal Year Ending March 31, 2019) Copyright (C
Slide 4: Industry and Business Environment: Overall Semiconductor Market
Industry and Business Environment 1. Overall Semiconductor Market Global • Fall in smartphone demand having an effect, but semiconductor demand for in-car devices and industrial instruments trending favorably • Mergers and acquisitions continue among major Industry semiconductor vendors • Gentle gro
Slide 5: Industry and Business Environment: Visual Computing Field
Industry and Business Environment 2. Visual Computing Field • Rapid growth averaging +32.8% annually from 2014 to 2019 is anticipated for the domestic IoT market, with the market growing to ¥715.9 billion by 2019*1 • The global in-car electronics market is expected to grow to approx. ¥34 trillion by
Slide 6: Results Highlights
Fiscal Year Ended March 31, 2016 Results Highlights Net sales rose 58.1% year-on-year due to beginning shipments of the VF2 next-generation LSI, core to the medium-term management plan Net Sales (Unit: million yen) 800 733 Up 58.1% 600 464 400 355 200 0 FY ended 2014年3月期 FY ended 2015年3月期 FY ended
Slide 7: Results Summary (P/L)
Fiscal Year Ended March 31, 2016 Results Summary (P/L) Profits improved tremendously due to rise in net sales Compared to FY ended FY ended previous FY March 31, March 31, (Increase- (Unit: million yen) 2015 2016 (Amount) decrease rate) Net sales 464 733 269 58.1% R&D costs generated by LSI developm
Slide 8: Field-by-Field Conditions: IP Core Licensing Field
Fiscal Year Ended March 31, 2016 Field-by-Field Conditions IP Core Licensing Field Income was generated from new licenses for medical device applications and from licenses for next-generation products from existing customers, as well as from new running royalties resulting from customers bringing pr
Slide 9: Field-by-Field Conditions: SoC/Module Business Field
Fiscal Year Ended March 31, 2016 Field-by-Field Conditions SoC/Module Business Field Began mass production and shipping of VF2 high-performance graphics semiconductor with development having been completed, contributing greatly to sales TOPICS Amusement equipment-geared VF2 high-performance graphics
Slide 10: Field-by-Field Conditions: Professional Services Field
Fiscal Year Ended March 31, 2016 Field-by-Field Conditions Professional Services Field Tone set for expansion with having won numerous new proposals in the image recognition field and received commissions to design image-processing semiconductors TOPICS Decision made to install DMP-made image proces
Slide 11: Results Summary (B/S)
Fiscal Year Ended March 31, 2016 Results Summary (B/S)） (Unit: million yen) End of March End of March Increase-decrease 2015 2016 amount Current assets 2,012 1,984 −28 Non-current assets 113 260 146 Total assets 2,126 2,244 118 Current liabilities 52 226 173 Non-current liabilities 19 18 −0 Total li
Slide 12: Progress Report on Medium-Term Management Plan
1 Explanation of Results, Fiscal Year Ended March 31, 2016 2 Progress Report on Medium-Term Management Plan 3 Performance Forecast, Fiscal Year Ending March 31, 2017 Reference materials: 4 Medium-Term Management Plan (Fiscal Year Ended March 31, 2014 - Fiscal Year Ending March 31, 2019) Copyright (C
Slide 13: Progress Report on Medium-Term Management Plan
Progress Report on Medium-Term Management Plan Build and expand business by developing and increasing sales of SoC 5,000 Launch professional services (Unit: million 4,500 yen) 10x Net Sales 4,000 Expand IP licensing business 3,500 3,000 2,500 Begin shipping 2,000 new LSI products 1,500 1,000 733 355
Slide 14: Key Points in Medium-Term Management Plan: SoC/Module Business
Key Points in Medium-Term Management Plan SoC/Module Business Field Build and expand business by developing and increasing sales of SoC Next-generation LSI development progressing smoothly. Productization completed, shifting to mass production. Begin shipping Mass ｖ Productization production Perform
Slide 15: Further Possibilities
Further Possibilities Added Possibilities for entering the next value-added, growth markets value Expand into artificial Expand into growing intelligence/deep IoT field learning* fields Products that implement sophisticated image Make use of technologies developed in processing in fields such as wea
Slide 16: On the Artificial Intelligence Market
On the Artificial Intelligence Market The size of the artificial intelligence market will grow to ¥86 trillion by 2030 Low power consumption inference processors required on the device side as GPU put to use for learning the large amounts of information and enormous amounts of imaging and other data
Slide 17: DMP's Capacity to Develop Technology: NEDO Results
DMP's Capacity to Develop Technology: NEDO* Results Commercializing research results 2003 "Task-Driven Industrial Technology Turn IP and LSI into products Development Costs Grant" More than 80 million units of customer Development of semiconductor application chip products shipped (cumulative) GPU p
Slide 18: Next-generation image recognition and processing technology platform R&D project
"Green Device Social Pilot Implementation Promotion Program" Next-generation image recognition and processing technology platform R&D project Carry out advance R&D on artificial intelligence (next-generation image processor using deep-learning) platform with expected applications in industrial robot
Slide 19: Performance Forecast, Fiscal Year Ending March 31, 2017
1 Explanation of Results, Fiscal Year Ended March 31, 2016 2 Progress Report on Medium-Term Management Plan 3 Performance Forecast, Fiscal Year Ending March 31, 2017 Reference materials: 4 Medium-Term Management Plan (Fiscal Year Ended March 31, 2014 - Fiscal Year Ending March 31, 2019) Copyright (C
Slide 20: Projected Performance: Net Sales
Fiscal Year Ending March 31, 2017 Projected Performance Net sales increased 36.3% over same period previous fiscal year due to factors including the expansion of sales channels for VF2 high- performance graphics semiconductor and cultivation of new customers Net Sales (Unit: million yen) 1,000 1,0
Slide 21: Projected Performance, Fiscal Year Ending March 31, 2017
Fiscal Year Ending March 31, 2017 Projected Performance FY ended FY ending Compared to previous FY March 31, 2016 March 31, 2017 (Increase-decrease (Unit: million yen) (Actual) (Forecast) (Amount) rate) Net sales 733 1,000 267 36.3% Operating loss −176 −161 15 ー Ordinary loss −193 −161 32 ー Current
Slide 22: Future Efforts Field-by-Field
Fiscal Year Ending March 31, 2017 Future Efforts Field-by-Field IP Core Licensing Field Licensing of graphics IP core and development of IP aimed at deep learning. SoC/Module Business Field Work to increase earnings by cultivating new customers and expanding sales channels for VF2 high-performance g
Slide 23: Reference Materials: Medium-Term Management Plan
1 Explanation of Results, Fiscal Year Ended March 31, 2016 2 Progress Report on Medium-Term Management Plan 3 Performance Forecast, Fiscal Year Ending March 31, 2017 Reference materials: 4 Medium-Term Management Plan (Fiscal Year Ended March 31, 2014 - Fiscal Year Ending March 31, 2019) Copyright (C
Slide 24: Become a one-stop solutions provider in the visual computing field
(Medium-Term Management Plan) Policy Become a one-stop solutions provider in the visual computing* field *Visual computing: General term for computer processing via graphics and images Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 24
Slide 25: DMP's Strengths
(Medium-Term Management Plan) Our Company's Strengths Core technologies and business experience in semiconductors that produce high added value for DMP DMP's strengths IP business experience World-leading GPU IP Global-level customers SoC technology Sophisticated, built-in including system IP low po
Slide 26: Business Structure: Management Resources and Business Domains
(Medium-Term Management Plan) Business Structure: Management Resources and Business Domains Offering unique products, licenses, and services with a distinctive IP portfolio Three pillars Visual computing field SoC modules Global Product alliances business DMP’s IP Customers Fabless OEM •GPU Se
Slide 27: DMP's Strategy
(Medium-Term Management Plan) DMP's Strategy Build foundation for growth with "three pillars" that can make the most of DMP's strengths Provide competitive SoC and solutions that the make most of DMP IP Product business Make the most of strengths to start business in "fields we can win" Expand s
Slide 28: Regarding the IP Business
(Medium-Term Management Plan) Regarding the IP Business Offer IP on industry's cutting edge with demonstrable low power consumption and high performance Next-generation image recognition processor IP under development ・ High-performance, low-power consumption processor for Computer Vision use ・Prepa
Slide 29: Regarding the IP Business: Focus on Visual Computing Market
(Medium-Term Management Plan) Regarding the IP Business Focus on visual computing market bound for growth Connected home Security Image recognition Mobile vision Robots/FA Games User interfaces Automobile driving assistance Wearable computing Medical Copyright (C) Digital Media Professionals Inc. Al
Slide 30: Semiconductor Market Prospects
(Medium-Term Management Plan) Semiconductor Market Prospects IoT(*) Growth in fields where Japanese (Conventional) companies are strong Mobile / PC / TV Cars / home electronics / industry / home / medical / security Volume Device types *IoT (Internet of Things): The idea of being able to provide con
Slide 31: Semiconductor Market Prospects: Arrival of IoT
(Medium-Term Management Plan) Semiconductor Market Prospects Arrival of IoT (Source: Cisco IBSG.2011) Consumer devices Industry Social infrastructure 6.3 billion 6.8 billion 7.2 billion 7.6 billion World population people people people people Number of devices 0.5 billion 12.5 billion 25 billion 50
Slide 32: DMP's Strategic One-stop Solutions
(Medium-Term Management Plan) DMP's Strategic One-stop Solutions Visual Computing Field High value-added IP core Advanced processor IP (GPGPU/image recognition) that enables heterogeneous processing environment Module Software System IP that achieves top-rank system performance in terms of low
Slide 33: Future prospects that make the most of our strengths
(Medium-Term Management Plan) Future prospects that make the most of our strengths and competitive advantages Phase 1 Phase 2 ■ Development of SoC: ■ Provide one-stop solutions Develop products in fields where ■ Expand IP portfolio we can "win" ■ Expand IP portfolio: ■ IoT-related service business E