Japan Display Inc. · TSE:6740

Japan Display — H1 FY2022 Earnings Presentation

26 slides from Japan Display's earnings presentation, Nov 12, 2021

  1. Slide 1: FY22/3 H1 Corporate Presentation

    FY22/3 H1 Corporate Presentation November 12, 2021

  2. Slide 2: PersonalTech For A Better World

    PersonalTech For A Better World Copyright 2021 Japan Display Inc. All Rights Reserved. Slide 2

  3. Slide 3: FY22/3 Q2 Overview

    [1 Japan Display Inc. JDI FY22/3 Q2 Overview

  4. Slide 4: FY22/3 H1 Overview

    FY22/3 H1 Overview  Managed semiconductor shortage, grew customer business, & passed on increased costs to selling prices, driving higher sales & reducing operating loss to significantly outperform forecast  Strong progress in new product roll-out & development of leading-edge, next- generation te

  5. Slide 5: Market Environment

    Market Environment Robust demand, but severe impact from semiconductor shortage, input inflation, & global supply chain disruptions Current Forecast ☁ ☁ Mobile • Declining LCD smartphone demand on expanding (US/Euro) OLED use Mobile (China/Other) • Semiconductor shortage increasing LCD smartphone de

  6. Slide 6: Significant Decrease in Q2 Operating Loss

    Significant Decrease in Q2 Operating Loss Managed semiconductor shortage, grew customer business, & passed on increased costs to selling prices to significantly decrease Q2 operating loss Q2 Operating Loss: JPY +6.8B Improvement vs. Initial Forecast JPY JPY -2.0B -1.2B JPY -8.0B Initial Forecast Upw

  7. Slide 7: Q2 EBITDA Profitable

    Q2 EBITDA Profitable Significant EBITDA improvement QoQ driving EBITDA profitability Q2 EBITDA: JPY +4.7B Improvement vs. Q1 JPY 1.0B JPY -3.7B FY22/3 Q1 Results FY22/3 Q2 Results (Aug 5) (Today) Copyright 2021 Japan Display Inc. All Rights Reserved. Slide 7

  8. Slide 8: Upward Revision of Full-Year Sales Forecast

    Upward Revision of Full-Year Sales Forecast Second consecutive upward revision Full-Year Sales Forecast: +16.9% vs. Initial Forecast +6.1% +10.2% JPY JPY JPY 280B 297B 254B Initial Forecast Previous Forecast Current Forecast (May 14) (Aug 5) (Today) Copyright 2021 Japan Display Inc. All Rights Reser

  9. Slide 9: Sustainability & Decarbonization Initiatives

    Sustainability & Decarbonization Initiatives Working towards the realization of a sustainable society by actively engaging SDGs & other important social issues United Nations Global Compact Renewable Energy  Joined United Nations Global Compact (UNGC)  Joined Apple's 100% renewable energy initiati

  10. Slide 10: Ichigo Trust Equity Financing (Exercise of 12th Stock Acquisition Rights)

    Ichigo Trust Equity Financing (Exercise of 12th Stock Acquisition Rights) Additional JPY 16.6B Exercised, Unexercised Amount JPY 11.1B ◆Exercise Details ◆Ichigo Trust Shareholding 12 th Stock Acquisition Share Shares Voting Rights Ichigo Trust Rights exercised Classes （thousand） （thousand） ownership

  11. Slide 11: Towards Structural Profitability: Fixed Cost Reductions

    Towards Structural Profitability: Fixed Cost Reductions Relentless cost reduction & pursuit of operating efficiencies (JPY billion) FY22/3 Full-Year Fixed Costs: 149.7 -21% vs. FY20/3 122.6 118.5 – Manufacturing: Maximized throughput by improving productivity and yields – Company-Wide: Reduced SG&A

  12. Slide 12: Towards Structural Profitability: Breakeven Point Reduction

    Towards Structural Profitability: Breakeven Point Reduction Have sharply reduced Breakeven Point on increased product profitability & cost reductions Reduced Breakeven Point by c. JPY 250B 580.1 (JPY billion) 401.4 330.3 Sales Break-Even Point 504.0 341.7 297.0 FY20/3 FY21/3 FY22/3 FCST Copyright 20

  13. Slide 13: Towards Structural Profitability: Diversified, Strong Product Portfolio

    Towards Structural Profitability: Diversified, Strong Product Portfolio Absorbing sharp decline in Mobile (US/Euro) & growing profitable product portfolio Sales (Mobile (US/Euro)) Sales (Excl. Mobile (US/Euro)) （JPY billion） （JPY billion） 39.7 37.9 312.9 34.9 112.8 103.5 88.1 162.6 76.4 56.2 68.0 49

  14. Slide 14: JDI Strategy

    JDI Strategy Strategic Focus KPI 1) Strengthen Existing Businesses  Rethink, Reposition, & Rebuild JDI  Delegate Authority, Move Quickly  Strengthen Sales & Marketing  EBITDA Positive in FY22/3 Q4  Massively Increase Profitability  Strengthen Competitiveness by Radically Cutting Costs & Liquid

  15. Slide 15: FY22/3 H1 Earnings Review / FY22/3 Full-Year Forecast

    FY22/3 H1 Earnings Review FY22/3 Full-Year Forecast

  16. Slide 16: FY22/3 Q2 and H1 Financial Results

    FY21/3 Q2 and H1 Financial Results Sharp drop in sales YoY, but improved profitability due to a better product mix and cost reductions. Excluding semiconductor shortage impact, JDI OP Profitable in Q2  Sales fell sharply YoY due to a continued demand slide for smartphone displays & the impact of a

  17. Slide 17: Sales by Product

    Sales by Product Quarterly Sales by Product Sales by Product (JPY billion) 111.8 Mobile (US/Euro)  Mobile (YoY -56%, QoQ + 6%) Mobile (China/Other) • Demand for LCDs fell due to expanding customer use of OLED in smartphones, 56% Automotive resulting in a big drop YoY, but the sharp Non-Mobile decli

  18. Slide 18: FY22/3 Q2 Operating Loss +/- Factors

    FY22/3 Q2 Operating Loss +/- Factors Operating Loss +/- Factors（YoY） Operating Loss +/- Factors (QoQ） （JPY billion） FY21/3 Q2 FY22/3 Q2 FY22/3 Q1 FY22/3 Q2 Sales: 111.8 Sales: 71.9 Sales: 66.0 Sales: 71.9 -2.9 -1.2 -5.9 -1.2 +3.3 +4.8 +0.1 +0.1 -0.3 Operating Manufacturing Operating -3.1 Loss Fixed

  19. Slide 19: FY22/3 Full-Year Forecast

    FY22/3 Full-Year Forecast <ref.> (JPY billion) FY20/3 FY21/3 FY22/3 FY22/3 FY22/3 Q1 Q2 Q3 Q4 Excl. chip shortage impact Act Act Prec. FCST ACT ACT New FCST New FCST New FCST Estimate (impact) Sales 504.0 341.7 280.0 66.0 71.9 73.0 86.0 297.0 319.9 (23.0) Mobile (US/Euro) - 162.6 69.0 21.4 22.0 13.0

  20. Slide 20: Appendix

    [1 Japan Display Inc. JDI Appendix

  21. Slide 21: Sales Breakdown by Product

    Sales Breakdown by Product Quarterly Sales by Product (JPY billion) 111.8 88.0 63.1 72.7 71.9 69.2 66.0 Mobile (US/Euro) 55.4 25.3 18.7 22.0 21.4 Mobile (China/Other) 9.1 8.5 11.0 10.0 Automotive 8.7 Non-Mobile 6.3 24.1 24.0 25.3 23.9 20.9 14.8 11.5 15.5 15.0 14.1 15.0 16.0 FY21/3 Q1 FY21/3 Q2 FY21/

  22. Slide 22: Consolidated B/S

    Consolidated B/S (JPY billion) FY21/3 FY21/3 FY22/3 YoY QoQ Q2 Q4 Q2 Cash and deposits 49.8 55.7 49.3 -0.4 -6.4 Accounts receivable - trade 42.3 31.2 29.9 -12.4 -1.3 Accounts receivable - other 32.8 15.3 19.7 -13.1 ＋4.4 Inventories 41.5 39.7 49.5 ＋8.0 ＋9.8 Other 5.8 4.3 4.6 -1.1 ＋0.3 Total current a

  23. Slide 23: Consolidated P&L

    Consolidated P&L (JPY billion) FY21/3 FY22/3 FY22/3 FY21/3 FY22/3 YoY QoQ YoY 2Q 1Q 2Q H1 H1 Sales 111.8 66.0 71.9 -39.9 ＋5.9 199.8 137.9 -61.9 EBITDA 1.0 (3.7) 1.0 -0.1 ＋4.7 -2.2 -2.8 -0.6 Operating Profit (Loss) (2.9) (5.9) (1.2) ＋1.7 ＋4.7 -9.9 -7.0 ＋2.8 Net non-op. income (expenses) (3.5) (0.5) (

  24. Slide 24: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement (JPY billion) FY21/3 FY22/3 FY22/3 FY21/3 FY22/3 YoY QoQ YoY Q2 Q1 Q2 H1 H1 Income before income taxes (19.5) (6.7) (1.3) ＋18.1 ＋5.3 (35.5) (8.0) ＋27.5 Dep. & Amort. 4.4 2.2 2.1 -2.3 ＋0.0 8.8 4.3 -4.5 Working capital 10.2 (4.4) (3.2) -13.4 ＋1.2 17.7 (7.6) -25.3 Advan

  25. Slide 25: PersonalTech For A Better World

    PersonalTech For A Better World Copyright 2021 Japan Display Inc. All Rights Reserved. Slide 25

  26. Slide 26: THANK YOU

    THANK YOU Any information related to market trends or industries mentioned in this document is based on information available at present and JDI does not guarantee that this information is accurate or complete. Any plan, estimation, calculation, quotation, evaluation, prediction, expectation or othe

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