Japan Display Inc. · TSE:6740

Japan Display — Q2 FY2014 Earnings Presentation

20 slides from Japan Display's earnings presentation, Nov 13, 2014

  1. Slide 1: Second Quarter of FY 2014 Consolidated Financial Results

    Second Quarter of FY 2014 Consolidated Financial Results Japan Display Inc. November 13, 2014

  2. Slide 2: 2Q-FY2014 Financial Results & FY2014 Forecast; Measures for Improving Earnings

    1. 2Q-FY2014 Financial Results & FY2014 Forecast 2. Measures for Improving Earnings Copyright © 2014 Japan Display Inc. All Rights Reserved. 2

  3. Slide 3: Summary of 2Q-FY 2014 Financial Results Meeting

    Summary of 2Q-FY 2014 Financial Results Meeting  Downward revision of the financial forecast for FY2014 was made on Oct 15 1H: Net sales: ¥310.0 bn  ¥285.6 bn OP: ¥1.0 bn  a loss of ¥20.3 bn Full term: Net sales: ¥750.0 bn  ¥740.0bn OP: ¥40.0 bn  ¥6.5 bn  2Q financial results fell below initia

  4. Slide 4: 1H-FY 2014 Consolidated Operating Results

    1H-FY 2014 Consolidated Operating Results (Billion yen) 1H-FY14 1H-FY14 Increase/ 1H-FY14 Increase/ Actual Est. May 15 Decrease Est. Oct 15 Decrease Net sales 285.6 310.0 (24.4) 286.3 (0.7) Operating income (20.3) 1.0 (21.3) (20.9) 0.6 -7.1% 0.3% -7.3% Ordinary income (22.5) (3.2) (19.3) (22.5) 0.0

  5. Slide 5: Extraordinary Loss Taken on Accounts Receivable

    Extraordinary Loss Taken on Accounts Receivable  An extraordinary loss of 2.13 bn yen was recorded in 2Q for 4.26 bn yen accounts receivable from Taiwan’s Wintek Corporation, a customer of JDI’s subsidiaries that has filed for corporate reorganization proceedings  Corporate reorganization proceedi

  6. Slide 6: 2Q-FY 2014 Financial Results

    2Q-FY 2014 Financial Results (Billion yen) 2Q-FY14 2Q-FY13 YoY Chg. 1Q-FY14 QoQ Chg. Net sales 160.4 175.6 -8.6% 125.2 28.2% Cost of sales 155.6 156.8 126.0 Gross profit 4.8 18.8 -74.3% (0.9) - 3.0% 10.7% -0.7% SG&A 12.4 11.1 11.8 Operating income (7.6) 7.6 - (12.7) - -4.7% 4.3% -10.1% Non-operating

  7. Slide 7: Quarterly Results of Operations

    Quarterly Results of Operations Quarterly results (Billion yen) Mobile Auto,C&I,Others 175.6 161.8 160.4 145.4 131.8 125.1 Net sales 136.7 113.6 126.7 120.2 99.6 90.3 31.7 38.9 35.1 32.2 34.8 40.2 4.3% 4.3% 5.1% 4.2% -4.7% -10.1% Operating income 6.3 7.6 8.2 5.5 (12.7) (7.6) 17.8% 12.8% 13.6% 15.1%

  8. Slide 8: 2Q-FY2014 Operating Income Analysis (YoY)

    2Q-FY2014 Operating Income Analysis (YoY) Operating Income Analysis (YoY) (Billion yen) 7.6 (11.3) 2Q14 2Q13 Cost One-time improvements expenses (valuation loss) Price (1.5) decline (3.5) +3.9 Increase in fixed costs FX (4.1) Shipment +1.3 decrease (7.6) Copyright © 2014 Japan Display Inc. All Right

  9. Slide 9: 2Q-FY2014 Balance Sheet

    2Q-FY2014 Balance Sheet (Billion yen) 9/2014 3/2014 Increase/Decrease Cash and deposits 71.2 141.4 (70.2) Accounts receivable 124.9 97.1 27.8 Other receivables 48.3 23.4 24.9 Inventories 103.0 90.6 12.4 Total current assets 376.9 378.5 (1.6) Property, plant and equipment 360.3 343.8 16.5 Total asset

  10. Slide 10: 1H-FY 2014 Cash Flow

    1H-FY 2014 Cash Flow (Billion yen) Increase/ 1H-FY2014 1H-FY2013 Decrease Income before income taxes (24.6) 7.3 (31.9) Depreciation and amortization 34.6 28.8 5.8 Working capital (1) (17.0) (19.2) 2.1 Decrease in advance receipts (10.7) (11.0) 0.3 Cash flow from operating activities (14.6) 8.9 (23.4

  11. Slide 11: FY 2014 Earnings Forecast

    FY 2014 Earnings Forecast (Billion yen) FY2014 FY2014 Increase/ FY2013 Increase/ Est. Nov 13 Est. May 15 Decrease Actual Decrease (A) (B) (A-B) (C) (A-C) Net sales 740.0 750.0 (10.0) 614.6 125.4 Operating income 6.5 40.0 (33.5) 27.6 (21.1) 0.9% 5.3% 4.5% Ordinary income 1.5 31.5 (30.0) 19.1 (17.6) 0

  12. Slide 12: 2H-FY 2014 Earnings Forecast

    2H-FY 2014 Earnings Forecast (Billion yen) 2H-FY14 2H-FY14 Increase/ 2H-FY13 Increase/ Est. Nov 13 Est. May 15 Decrease Actual Decrease (A) (B) (A-B) (C) (A-C) Net sales 454.4 440.0 14.4 293.6 160.8 Operating income 26.8 39.0 (12.2) 13.7 13.1 5.9% 8.9% 4.7% Ordinary income 24.0 34.7 (10.7) 9.4 14.6

  13. Slide 13: Measures for Improving Earnings

    1. 2Q-FY2014 Financial Results & FY2014 Forecast 2. Measures for Improving Earnings Copyright © 2014 Japan Display Inc. All Rights Reserved. 13

  14. Slide 14: Closure of Fukaya Plant

    Closure of Fukaya Plant October 15: Decision to close the Fukaya Plant (located in Saitama Prefecture) announced. Closure process expected to be completed by April 2016.  Reasons for closure Closure of Fukaya's G3.0 line (550mm x 670mm), which is inefficient relative to other plants, helps to impro

  15. Slide 15: Sales Expectation by Resolution and Customer Region

    Sales Expectation by Resolution and Customer Region 1H-FY 2014 2H-FY 2014 (vs. May 15 FCST) Q3 (QoQ) 4Q (QoQ) WQHD China/Asia Global Full-HD smartphone manufacturers Largest customer HD720 China Pixel Eyes™ Copyright © 2014 Japan Display Inc. All Rights Reserved. 15

  16. Slide 16: Mobile Category Sales by Customer Region

    Mobile Category Sales by Customer Region Mobile Category Sales by Customer Region Euro-US China Others 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14(F) 4Q14(F) (FY) ・ Q3 sales to Euro-US will increase significantly to offset the delays in shipments in Q2 ・ Sales to China and other Asian are expected to continu

  17. Slide 17: Smartphone Display Sales to China/Asian by Resolution

    Smartphone Display Sales to China/Asian by Resolution Smartphone Display Sales by Resolution (for China and Asian Customers) >=WQHD Pixel Eyes™ Full-HD HD720 <HD720 1Q14 2Q14 3Q14(F) 4Q14(F) (FY) • In the 2H, Full-HD sales to China and other Asian customers will increase to contribute to earnings •

  18. Slide 18: Turnaround Factors in 2H-FY14

    Turnaround Factors in 2H-FY14 Turnaround Factors  Large customer’s new products seeing strong sales  Achieved new design-wins for large business from China/Asia  Full-HD/WQHD demand increasing for high resolution displays  Increasing adoption of Pixel Eyes™ by smartphone makers  Mobara G6 (J1)

  19. Slide 19: Efforts to Improve Cost Competitiveness

    Efforts to Improve Cost Competitiveness As part of medium-to-long term cost-reduction measures the following efforts have been underway since announcing a company reorganization in July  Improving yields, the basis for competitiveness  Developing new technology along with making upgrades to our ex

  20. Slide 20: Forward Looking Statement

    Forward Looking Statement: 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, ex

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