Digital Media Professionals Inc. · TSE:3652

Digital Media Professionals — FY2016 Earnings Presentation

25 slides from Digital Media Professionals's earnings presentation, May 25, 2017

  1. Slide 1: Fiscal Year Ended March 31, 2017 Results Briefing

    Fiscal Year Ended March 31, 2017 Results Briefing Digital Media Professionals Inc. May 25, 2017 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. Copyr

  2. Slide 2: Explanation of Results, Fiscal Year Ended March 31, 2017

    1 Explanation of Results, Fiscal Year Ended March 31, 2017 2 Fiscal Year Ending March 2018, Business Forecast 3 Proposition for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 2

  3. Slide 3: Explanation of Results, Fiscal Year Ended March 31, 2017

    1 Explanation of Results, Fiscal Year Ended March 31, 2017 2 Fiscal Year Ending March 2018, Business Forecast 3 Proposition for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 3

  4. Slide 4: Operating Environment of the Company

    Operating Environment of the Company Semiconductor Industry  Rising demand for infrastructure-oriented chips such as chips for servers and data centers, etc., driven by IoT and AI market growth  Favorable demand for memory and on-board automotive equipment applications  Demise of Moore's law and

  5. Slide 5: Results Highlights

    FY Ended March 31, 2017 Results Highlights Sales  Revenue recognition of licensing income from existing customers and licensing income from Deep Learning-type video/image recognition engine "ZIA" Classifier (*)  Sales of image processing semiconductor "VF2" miss expectations Earnings (*) Details a

  6. Slide 6: Results Summary (P/L)

    FY Ended March 31, 2017 Results Summary (P/L) (Unit: million yen) FY ended FY ended March 31, March 31, YoY change (Amount) 2016 2017 Net sales 733 694 -39 Operating loss -176 -263 -87 Ordinary loss -193 -262 -69 Current net loss -64 -365 -301 Copyright (C) Digital Media Professionals Inc. All Right

  7. Slide 7: Results Summary (B/S)

    FY Ended March 31, 2017 Results Summary (B/S) (Unit: million yen) Increase- End of March End of March decrease 2016 2017 amount Current assets 1,984 1,668 -316 Non-current assets 260 112 -148 Total assets 2,244 1,780 -464 Current liabilities 226 91 -135 Non-current liabilities 18 18 0 Total liabilit

  8. Slide 8: Results Summary (Efforts in the period under review): IP Core License Field

    FY Ended March 31, 2017 Results Summary (Efforts in the period under review) IP Core License Field Initiation of sales and marketing efforts for the new 3D graphics IP core "M3000" series Realized small size combined with high performance Revenue recognition from sales of middleware library "IPSL" c

  9. Slide 9: Results Summary (Efforts in the period under review): SoC / Module Business Field

    FY Ended March 31, 2017 Results Summary (Efforts in the period under review) SoC / Module Business Field Roll-out of sales and marketing activities for amusement-application graphics semiconductor "VF2" Performance missed plan due to effects from decreased demand amid changing regulatory trends in t

  10. Slide 10: Results Summary (Efforts in the period under review): Professional Services Field

    FY Ended March 31, 2017 Results Summary (Efforts in the period under review) Professional Services Field Received commission for “Crosscutting Technology Development Project to Promote IoT" of NEDO (*) Promoted development of "AI platform based on a power saving AI engine and a cloud integrating dis

  11. Slide 11: Fiscal Year Ending March 2018, Business Forecast

    1 Explanation of Results, Fiscal Year Ended March 31, 2017 2 Fiscal Year Ending March 2018, Business Forecast 3 Proposition for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 11

  12. Slide 12: Business Forecast

    FY Ending March 31, 2018 Business Forecast  Expectations for 58.4% year-on-year growth in sales revenue due to initiation of volume production and shipments of next-generation image processing semiconductor "RS1" and expansion of professional services 1,100 Net sales (Unit: million yen) (Estimate)

  13. Slide 13: Business Forecast: Sales and Earnings

    FY Ending March 31, 2018 Business Forecast (Unit: million yen) FY ended FY ending YoY change March 31, March 31, 2017 2018 (Amount) (Increase-decrease rate) (Actual) (Forecast) Net sales 694 1.100 406 58.4% Operating loss -263 -90 173 - Ordinary loss -262 -90 172 - Current net loss -365 -90 275 - Sa

  14. Slide 14: Proposition for Future Growth

    1 Explanation of Results, Fiscal Year Ended March 31, 2017 2 Fiscal Year Ending March 2018, Business Forecast 3 Proposition for Future Growth Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 14

  15. Slide 15: Diversification of earnings sources

    FY ending March 31, 2018 Measures in the time ahead Strengthening of Promotion of business existing businesses + in the AI field  Next-generation image processing LSI "RS1" to be readied for manufacture and volume production  Enhancement of the "ZIA" platform product line-up  Promotion of develop

  16. Slide 16: About "RS1"

    About "RS1" Next-generation image processor LSI for next-generation entertainment platforms Real time 3D Hugely superior video/3D performance performance compared with competitor products  Successor to game machine application graphics LSI "VF2"  Co-development with BANDAI NAMCO  Ongoing shipment

  17. Slide 17: AI markets to grow to ¥86 trillion in market size by 2030

    Regarding AI Markets AI markets to grow to ¥86 trillion in market size by 2030 Diffusing from IT application fields such as e-commerce, AI passed into everyday environments through the interconnection with IoT and is destined to see outsized market growth and development Market size of AI ¥86 relate

  18. Slide 18: Artificial Intelligence Technology Destined to Become Infrastructure in Every Industry

    Artificial Intelligence Technology Destined to Become Infrastructure in Every Industry The environment surrounding artificial intelligence (AI) Agriculture, Manufacture Energy/Infra Financial Management Mobility forestry, and administration (Industrie4.0) structure services fisheries Home and Crime

  19. Slide 19: About Edge AI

    About Edge AI  Many sensors are to be transposed to cameras  Number of network cameras to be shipped in 2020: up to 350 million units (*)  Explosive growth in data volumes (700PB/day)  Applications posing real-time requirements (e.g., car driving, AR/VR)  Privacy concerns (*) Source: Intel Corp

  20. Slide 20: Accelerate DMP AI Business

    NEDO (Crosscutting Technology Development Project to Promote IoT) Started development of artificial intelligence platform based on power saving AI engine and cloud able to integrate dissimilar engines Amount awarded DMP under the contract (total amount): ¥475 million Duration of the commission: June

  21. Slide 21: Structure of the NEDO Project

    Structure of the NEDO Project Crosscutting Technology Development Project to Promote IoT (Fiscal year 2016 to fiscal year 2020) Development of AI platform based on a power saving AI engine and a cloud integrating dissimilar engines Commission Development of an edge-based Development of a cloud-based

  22. Slide 22: About "ZIA" platforms

    About "ZIA" platforms Deep Learning / AI / ZIA™  Based on the technologies accumulated since the founding as Japan's only GPU vendor, the AI platforms of DMP form novel software/hardware products fusing AI/Deep Learning knowledge Software Product Stage 1 On sale Image classification engine Hardware

  23. Slide 23: ZIA Classifier

    ZIA Classifier Stage 1 "ZIA" series image recognition and classification engines using Deep Learning  Categorization by item out of large-volume image data as required by customers, with efficiency-enhanced Deep Learning performance and with processing time shortened  Ongoing co-development of app

  24. Slide 24: ZIA DV700

    ZIA DV700 Processor with ultra-low power consumption specialized for Deep Learning inference processing applicable to all data categories  Stage 2 product of the "ZIA" product platform using AI technology of DMP  Processor with ultra-low power consumption suited for edge-computing AI processing, c

  25. Slide 25: Proposition for Future Growth

    Proposition for Future Growth Added Entry into the next added value and growth market value Expansion into the Expansion into the AI / growing IoT field Deep Learning* fields Products achieving advanced image processing such as wearables, Active use of technologies automotive applications, residenti

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