Slide 1: Results Briefing, Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2020 Results Briefing Digital Media Professionals Inc. May 20, 2020 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: Agenda
1 Financial Results and Progress of Initiatives, Fiscal Year Ended March 31, 2020 2 Business Environment and Forecast, Fiscal Year Ending March 31, 2021 3 Initiatives and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 2
Slide 3: Financial Results and Progress of Initiatives
1 Financial Results and Progress of Initiatives, Fiscal Year Ended March 31, 2020 2 Business Environment and Forecast, Fiscal Year Ending March 31, 2021 3 Initiatives and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 3
Slide 4: Results Highlights: P/L
Fiscal Year Ended March 31, 2020 Results Highlights: P/L Difference FY 03/2020 FY 03/2020 FY 03/2020 between initial FY 03/2019 (Unit: million yen) (Initial estimate on (Revised estimate on (Actual) forecast and (Actual) YoY change May 10, 2019) Apr. 10, 2020) actual results Net sales 1,300 1,320 1,
Slide 5: Results Highlights: Net Sales by Business
Fiscal Year Ended March 31, 2020 Results Highlights: Net Sales by Business IP core license business Sales ¥380 million YoY change +¥150 million ⚫ GPU/AI-related new IP licenses greatly increased ⚫ Decrease in running royalties centered on game console customers LSI product business Sales ¥553 millio
Slide 6: Results Highlights: B/S
Fiscal Year Ended March 31, 2020 Results Highlights: B/S Increased equity through business and capital tie-up with Yamaha Motor (Equity ratio: 92.2%) End of End of Amount (Unit: million yen) Major factors March 2019 March 2020 change Cash & deposits +853, Accounts receivable - trade +45 Current asse
Slide 7: Expanding RS1 Business
Fiscal Year Ended March 31, 2020: Progress of Initiatives Expanding RS1 Business RS1, Next-Generation Graphics Processor Now Producing in Volume and Shipping ⚫ Promoting multi-platforms strategy ⚫ Gaming machine • Adopted by ZEEG, a joint venture between Sammy and Universal Entertainment • Shipments
Slide 8: Expanding Portfolio and Sales of AI Products
Fiscal Year Ended March 31, 2020: Progress of Initiatives Expanding Portfolio and Sales of AI Products Expanding product lineup and customer adoptions of ZIA AI processor IP, module, and software IP Core Products Module Products Software Products and Services Compact and high Flexible and low perfor
Slide 9: Strengthening Collaboration with Customers and Cultivating Specific Fields
Fiscal Year Ended March 31, 2020: Progress of Initiatives Strengthening Collaboration with Customers and Cultivating Specific Fields ⚫ Business and capital tie-up with Yamaha Motor Promoting AI implementation optimized for each product domain of Yamaha Motor in developing such as automatic / autonom
Slide 10: Establishing Subsidiary for Development in Vietnam
Fiscal Year Ended March 31, 2020: Progress of Initiatives Establishing Subsidiary for Development in Vietnam ⚫ Utilizing high quality human resources in Vietnam to strengthen and complement the development system ⚫ In the mid term, aiming to develop the local market in Vietnam and making it a bridge
Slide 11: Business Environment and Forecast, Fiscal Year Ending March 31, 2021
1 Financial Results and Progress of Initiatives, Fiscal Year Ended March 31, 2020 2 Business Environment and Forecast, Fiscal Year Ending March 31, 2021 3 Initiatives and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 11
Slide 12: Business Environment
Fiscal Year Ending March 31, 2021 Business Environment ⚫ Japan / World Economy • The future of Japan and the world economy is expected to remain severe due to the global pandemic of new coronavirus infections ⚫ Semiconductor / AI Industry • Negative impacts of the economic downturn such as declines
Slide 13: Business Forecast
Fiscal Year Ending March 31, 2021 Business Forecast Business forecast for the fiscal year ending March 2021 is undecided because it is difficult to reasonably calculate the impact of the new coronavirus infection at this stage. It will be disclosed as soon as reasonably predictable. FY 03/2020 FY 03
Slide 14: Initiatives and Blueprint for Future Growth
1 Financial Results and Progress of Initiatives, Fiscal Year Ended March 31, 2020 2 Business Environment and Forecast, Fiscal Year Ending March 31, 2021 3 Initiatives and Blueprint for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 14
Slide 15: DMP Mid-term Vision 2025
DMP Mid-term Vision 2025 Stable Business Base Value Creation Operational Excellence Innovation & Challenge Stable Revenue Growth Areas to Focus Sustainable growth by existing business AI: Automobile, Robotics, VR Human Resources Marketing Diversity/Global perspective Branding The company engineers w
Slide 16: New Management Team
New Management Team (to be approved at the General Shareholders Meeting on June 19) ⚫ Aiming at further enhancement of corporate value by the new management • Further stabilizing management and establishing sustainable growth by two representatives system • Strengthening AI/solution development syst
Slide 17: DMP's Value Proposition and Monetization
DMP’s Value Proposition and Monetization Unrivaled integrated development model that allows domain optimization • Integrated development of algorithm, software, and hardware • Flexible value proposition and monetization model by offering licenses, products, and professional services Hardware Acceler
Slide 18: Major Initiatives for the Fiscal Year Ending March 2021
Major Initiatives for the Fiscal Year Ending March 2021 ⚫ Approaches to Robotic Vehicle Domain • Promoting labor-saving and automation (automated driving / autonomous driving) technology development centered on collaboration with Yamaha Motor and other low-speed vehicle areas • Developing products o
Slide 19: Approaches to Robotic Vehicle
Approaches to Robotic Vehicle “DMP 3D Perception” Creating new value leveraging DMP’s SLAM Localization unique technologies Rendering Computer Vision Mapping AR/VR Simulation Develop “DMP 3D Perception”, an advanced 3D SLAM GPU Low Power Robotics recognition technology for the eyes of the next- High
Slide 20: Approaches to Safety / DMS Domain
Approaches to Safety / DMS Domain Platform for safe and secure system development using drive recorders with diversified functions Professional service for safe driving assistance system Image analysis using AI and deep learning ZIATM SAFE: Systematize software for drive Recognition of people, Recog
Slide 21: NEDO Projects (1)
NEDO Projects (1) Improvement of technological capability through NEDO projects, application to own business and realization of social contributions Development of "AI Platform for Artificial Intelligence Adopted in "Project for Accelerating Innovative (AI): An Energy Efficient AI Engine and an Inte
Slide 22: NEDO Projects (2)
NEDO Projects (2) Improvement of technological capability through NEDO projects, application to own business and realization of social contributions "Survey of issues for finding ideas regarding Technology Development for AI Chip and Next-generation Computing for High-efficiency and High-speed Proce
Slide 23: Partnership with Prophesee
Partnership with Prophesee (announced on May 14) Promoting development of more efficient IoT, robotic and autonomous navigation systems by combining Prophesee’s event-based vision sensor leveraging bio-inspired technology, and DMP’s edge AI technology Features of Prophesee’s event-based vision senso
Slide 24: Blueprint for Future Growth
Blueprint for Future Growth Evolve into the world's leading "AI Computing Company" Integrated development of AI algorithms, software and hardware Expansion into the growing IoT/AI field Development of ZIA platform • Processor IP • Software • Modules AI • Strengthening of ecosystem with partners • Ov
Slide 25: Inquiries
<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 condi
Slide 26: Appendix
Appendix Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 26
Slide 27: Business Description
Business Description Business Description Major Customers IP Core*1 License Development and license offer of hardware IP (logic design data etc.) and software IP (mainly hardware Business control drivers and supporting tools for contents creation) necessary for drawing detailed images and artificial
Slide 28: Quarterly Net Sales Trend
Quarterly Net Sales Trend (Unit: million yen) 667 593 418 368 347 314 301 232 214 184 188 168 141 137 149 142 87 60 61 43 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 28
Slide 29: Quarterly Operating Income Trend
Quarterly Operating Income Trend 241 (Unit: million yen) 132 138 81 48 35 29 22 24 -21 -36 -37 -52 -53 -61 -118 -114 -131 -154 -233 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 29
Slide 30: Major Activities (Fiscal Year Ended March 31, 2020)
Major Activities (Fiscal Year Ended March 31, 2020) Each item is linked to PR/IR news (in Japanese or English) of DMP’s website. Date of Announcement/Event Details April 3 - April 5, 2019 Partners exhibited ZIATM C3 KITs at AI (Artificial Intelligence) EXPO April 10, 2019 Release of ZIA™ C3 KIT Ver.