Digital Media Professionals Inc. · TSE:3652
Digital Media Professionals — H1 FY2017 Earnings Presentation
29 slides from Digital Media Professionals's earnings presentation, Nov 17, 2016
Slide 1: Fiscal Year Ending March 31, 2017 First Half Results Briefing
Fiscal Year Ending March 31, 2017 First Half Results Briefing Digital Media Professionals Inc. November 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
Slide 2: Agenda
1 Explanation of Results, Fiscal Year Ending March 31, 2017 First Half 2 Fiscal Year Ending March 2017, Full-Year Business Forecast 3 Medium-Term Management Plan and Growth Outline 4 Reference Materials Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 2
Slide 3: Explanation of Results, Fiscal Year Ending March 31, 2017 First Half
1 Explanation of Results, Fiscal Year Ending March 31, 2017 First Half 2 Fiscal Year Ending March 2017, Full-Year Business Forecast 3 Medium-Term Management Plan and Growth Outline 4 Reference Materials Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 3
Slide 4: Semiconductor Industry and Business Environment
Semiconductor Industry and Business Environment Global • The smartphone field is decelerating, but demand for memory, automotive, and industrial equipment remains buoyant • 3Q (July - September) global sales at historical high of $88.3 billion (+11.5% compared with the year-earlier period) *1 • 0.6%
Slide 5: Results Highlights
Fiscal Year Ending March 31, 2017 First Half Results Highlights Effort Result Sales: +30% (approx.) compared Focus on order acquisition activities with the year-earlier period for IP licenses Solid performance of running royalties from existing customers Development of next-generation Income fro
Slide 6: Efforts in the period under review
Fiscal Year Ending March 31, 2017 First Half Efforts in the period under review 1 Started offering “M3000 series” new 3D graphics IP core (announced August 9, 2016) Realized small size combined with high performance - Roughly 6-fold gain in performance compared with prior- generation “SMAPH-S” - Ach
Slide 7: Results Summary (P/L) - YoY Change
Fiscal Year Ending March 31, 2017 First Half Results Summary (P/L) - YoY Change (Unit: million yen) 1H FY ended 1H FY ending YoY change March 2016 March 2017 (Actual) (Actual) (Increase- (Amount) decrease rate) Net sales 147 192 45 31.0% Operating loss -179 -364 -185 － Ordinary loss -176 -376 -200 －
Slide 8: Results Summary (B/S) - YoY Change
Fiscal Year Ending March 31, 2017 First Half Results Summary (B/S) - YoY Change (Unit: million yen) Increase- End of March End of decrease 2016 September 2016 amount Current assets 1,984 1,685 -299 Non-current assets 260 253 -7 Total assets 2,244 1,938 -306 Current liabilities 226 276 50 Non-current
Slide 9: Full-Year Business Forecast
1 Explanation of Results, Fiscal Year Ending March 31, 2017 First Half 2 Fiscal Year Ending March 2017, Full-Year Business Forecast 3 Medium-Term Management Plan and Growth Outline 4 Reference Materials Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 9
Slide 10: Full-Year Business Forecast
Fiscal Year Ending March 2017, Full-Year Business Forecast (Unit: million yen) FY ended FY ending YoY change March 31, March 31, 2016 2017 (Increase- (Actual) (Forecast) (Amount) decrease rate) Net sales 733 1,000 267 36.3% Operating loss -176 -161 15 － Ordinary loss -193 -161 32 － Current net loss
Slide 11: Medium-Term Management Plan and Growth Outline
1 Explanation of Results, Fiscal Year Ending March 31, 2017 First Half 2 Fiscal Year Ending March 2017, Full-Year Business Forecast 3 Medium-Term Management Plan and Growth Outline 4 Reference Materials Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 11
Slide 12: Key points of the medium-term management plan
Key points of the medium-term management plan SoC/Module Business Field Build and expand business by developing and increasing sales of SoC Initiation of shipments of graphics LSI “VF2” Steady progress in client-commissioned development of successor chip “VF3” VF3 (provisional name) Under developmen
Slide 13: 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/ Financial Management Mobility forestry, and administration (Industrie 4.0) Infrastructure services fisheries Home and Crime
Slide 14: Edge AI based on low power consumption GPU
Edge AI based on low power consumption GPU Rise in distributed-type AI with AI processing on the edge • Network zone • Real time properties • Privacy Cloud AI DMP GPU core Low power Fast Small size consumption processing Low cost A field DMP can make most of its development technology as one out of
Slide 15: DMP AI platform ZIA
DMP AI platform ZIA Z Intelligent Accelerator DMP starts offering AI driven platform ZIA™ (November 7, 2016) - As the first stage, sales launch of Deep Learning-type DMP image classification engine (see pictures below) -Going forward, DMP plans to successively release hardware products with integrat
Slide 16: Accelerate DMP AI Business
Lateral technology development project for the promotion of 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 2
Slide 17: Structure of the NEDO project
Structure of the NEDO project Lateral technology development project for the promotion of 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 AI Development of a clo
Slide 18: Business policies of the time ahead
Business policies of the time ahead Entry into the next added-value and growth market Expansion into phase 2 and the growing AI field Establishment of a SoC business platform in Expansion of the SoC/module business the amusement market where we can win Development of software and hardware products f
Slide 19: Medium-Term Management Plan and Growth Outline
1 Explanation of Results, Fiscal Year Ending March 31, 2017 First Half 2 Fiscal Year Ending March 2017, Full-Year Business Forecast 3 Medium-Term Management Plan and Growth Outline 4 Reference Materials Copyright (C) Digital Media Professionals Inc. All Rights Reserved. 19
Slide 20: 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. 20
Slide 21: 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 22: 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 Customers DMP’s IP Fabless OEM •GPU Se
Slide 23: 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 Make the most of strengths to start business in “fields we can win” business Expand s
Slide 24: 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 ・Prepar
Slide 25: Regarding the IP Business: 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 26: 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 27: 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 28: 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 Module Software processing environment System IP that achieves top-rank system performance in terms of low
Slide 29: 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 we can “win” ■ Expand IP portfolio: ■ Expand IP portfolio: Enter image processing field ■
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