Japan Display Inc. · TSE:6740
Japan Display — Q1 FY2020 Earnings Presentation
17 slides from Japan Display's earnings presentation, Sep 10, 2020
Slide 1: First Quarter of FY 2020 Consolidated Financial Results
First Quarter of FY 2020 Consolidated Financial Results Japan Display Inc. September 10, 2020
Slide 2: Highlights
Highlights ◼ Equity finance from Ichigo Trust: Total of JPY 110.8bn (Note 1) Issuance of Class B & Class D preferred shares, stock acquisition rights for Class E preferred shares ✓ Capital improvement ✓ Secure large-scale funding for a growth strategy as a going concern ◼ Hakusan Plant transfer: Tot
Slide 3: 2020 First Quarter Summary
2020 First Quarter Summary ■ Fell within range of June 30 estimates ■ YoY comparison ✓ Sales mostly unchanged ✓ Based on structural reforms and cost reductions etc., achieved a gross profit turnaround, operating losses improved by JPY 20.1bn and EBITDA by JPY 17.0bn (Billion Yen) FY 19 FY 20 FY 20 F
Slide 4: Quarterly Sales by Category
Quarterly Sales by Category Quarterly net sales Sales by category (Billion yen) Mobile（US/Euro） Mobile (China/other) ■ Mobile (US/Europe: JPY 55.4bn, Non-Mobile China/other: JPY 6.3bn, +15% YoY) 147.3 150.0 Automotive Sales were weak due to greater customer adoption of OLED & lower demand caused by
Slide 5: 1Q-FY20 Operating Results
1Q-FY20 Operating Results (Billion yen) 1Q-FY19 1Q-FY20 YoY Chg. 4Q-FY19 QoQ Chg. Net sales 90.4 88.0 (2.4) 116.2 (28.2) Cost of sales 107.2 87.0 (20.2) 112.9 (25.9) Gross profit (loss) (16.8) 1.0 +17.8 3.4 (2.3) SG&A 10.3 8.0 (2.2) 9.3 (1.2) Operating income (loss) (27.1) (7.0) +20.1 (5.9) (1.1) Ne
Slide 6: 1Q-FY20 Operating Profit Change Factors
1Q-FY20 Operating Profit Change Factors (Billion yen) （億円） vs. Previous year (1Q-FY19) vs. Previous quarter （4Q-FY19） 1Q-FY19 1Q-FY20 4Q-FY19 1Q-FY20 (Previous year) (Previous quarter) Sales: 90.4 Sales: 88.0 Sales: 116.2 Sales: 88.0 +20.1 -1.1 (27.1) (7.0) (5.9) (7.0) OP OP OP Shipment SG&A Invento
Slide 7: Hakusan Plant Transfer
Hakusan Plant Transfer (contract finalized, delivery of assets by end-October) Hakusan Plant transfer to reduce costs & lead to healthier balance sheet. Will continue development & mfg. of high value-added products at Mobara Plant, a key facility 1. Lower plant maintenance, fixed asset tax and other
Slide 8: Completion of Additional Financing from Ichigo Trust
Completion of Additional Financing from Ichigo Trust Equity financing following the third-party allotment of preferred shares in March secured large-scale funding to pursue growth strategy as a going concern Payment date August 28, 2020 Class D Number of new Class D preferred shares 500 shares prefe
Slide 9: Outlook for FY 2020
Outlook for FY 2020 Minimize the impact of Covid-19 ＆ rebuild earnings base to recoup earnings and grow ■ FY20 outlook Net sales: Down 15-25% vs. FY19 (JPY 504bn)（6/30 forecast was “down 15-20%”) Demand for auto displays recovering from 2Q. 2H smartphone requires caution. OP: Aim for sales recovery
Slide 10: Measures: Carte Blanche Structural Reforms
(repost from FY 19 financial results Carte Blanche Structural Reforms presentation material) Go back to basics, take pride as a "technology company" & regain "added value" Strengthen governance Applying global best practices, increase internal awareness of governance priorities, transition to a comp
Slide 11: Progress of Carte Blanche Structural Reforms
Progress of Carte Blanche Structural Reforms • Based on a resolution approved at the AGM, transitioned in Aug. 2020 to a company with committees (nominating etc.) having strong oversight functions & with a majority of outside directors. Strengthen • According to report by the newly created “Governan
Slide 12: Progress of Carte Blanche Structural Reforms
Progress of Carte Blanche Structural Reforms • OLED: Rigorously pursue low-power consumption, long-life and high resolution displays by further From “capital leveraging our custom OLED technology investment” to • LCD: Develop displays that can be used for hygienic applications by using transparent d
Slide 13: Appendix
Appendix Copyright © 2020 Japan Display Inc. All Rights Reserved. 13
Slide 14: Recent Technology Development Announcements
Recent Technology Development Announcements Creating new products by applying core technologies to new business fields such as healthcare and security July 29 2020 release July 31 2020 release Aug 24 2020 release US FBI PIV-certified SID DISPLAY WEEK 2020 Development of a 30.2-inch Mass production b
Slide 15: Important measures
Strengthen Governance Thoroughly analyze the causes of inappropriate accounting, prevent recurrence and improve governance. Implement improvement measures based on improvement reports (1) Change internal awareness ・ Disseminating documents and video messages throughout JDI ・ Issued highly conservati
Slide 16: Balance Sheet
Balance Sheet (Billion yen) March 31, 2020 June 30, 2020 Cash and deposits 66.7 45.2 Accounts receivable - trade 70.9 38.2 Accounts receivable - other 48.1 36.0 Inventories 39.1 47.1 Other 4.6 7.3 Total current assets 229.4 173.7 Total non-current assets 160.3 157.0 Total assets 389.7 330.8 Accounts
Slide 17: Cash Flow
Cash Flow (Billion yen) 1Q-FY20 Income before income taxes (16.0) Dep. & Amort. 4.4 Working capital 7.5 Advances received (6.5) Business restructuring expenses 7.7 Other (12.1) CF from operating activities (15.0) Acquisitions of P&E (3.1) Other 0.0 CF from investing activities (3.1) CF from financin