Japan Display Inc. · TSE:6740

Japan Display — Q3 FY2022/3 Earnings Presentation

30 slides from Japan Display's earnings presentation, Feb 10, 2022

Slide 1: FY22/3 Q3 Corporate Presentation
FY22/3 Q3 Corporate Presentation February 10, 2022
Slide 3: FY22/3 Q3 Overview
|_| Japan Display Inc. _ JDI FY22/3 Q3 Overview
Slide 4: FY22/3 Q3 Overview
FY22/3 Q3 Overview ◼ Q3 sales came in below forecast on chip shortage impacts ◼ Nonetheless, Q3 earnings came in significantly above forecast from passing on increased costs to selling prices, cost reductions, & gain on KOE sale ◼ Significant progress in both frontplane & backplane technology develo
Slide 5: Market Environment
Market Environment Supply chain disruptions continue – demand volatility, chip shortage, & soaring transportation, materials, & power costs Current Forecast ☁ ☁ Mobile • Declining LCD smartphone demand on expanding (US/Euro) OLED Mobile (China/Other) • Chip shortage affecting customer production, re
Slide 6: Q3 EBITDA Improvement to JPY -0.9B
Q3 EBITDA Q3 EBITDA Improvement to JPY -0.9B Q3 EBITDA: JPY +1.1B vs. forecast JPY JPY -0.9B -2.0B JPY -5.7B FY22/3 Q3 FY22/3 Q3 FY21/3 Q3 Forecast Results Results （21/11/12）（Today） Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 6
Slide 7: Q3 Operating Profit Improvement to JPY -3.1B
Q3 Operating Profit (OP) Improvement to JPY -3.1B Q3 OP: JPY +0.9B vs. Forecast JPY JPY -3.1B -4.0B JPY -8.7B FY22/3 Q3 FY22/3 Q3 FY21/3 Q3 Forecast Results Results （21/11/12）（Today） Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 7
Slide 8: Q3 Net Income Improvement to JPY 2.4B
Q3 Net Income (NI) Q3 NI Improvement to JPY 2.4B Q3 NI: JPY +8.1B Improvement vs. Forecast JPY 13.4B JPY 2.4B JPY -5.7B FY21/3 Q3 Results* FY22/3 Q3 FY22/3/Q3 Results *Included gain on Hakusan Plant sale of JPY 19.1B Forecast （Today）（21/11/12） Copyright 2022 Japan Display Inc. All Rights Reserved.
Slide 9: Full-Year EBITDA Forecast
Full-Year EBITDA Forecast Full-Year EBITDA Forecast Improvement to JPY -2.6B Full-Year EBITDA: JPY +1.8B Forecast Increase JPY JPY -2.6B -4.4B JPY -12.5B FY22/3 FY22/3 FY21/3 Results Previous Forecast Current Forecast （21/11/12）（Today） Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 9
Slide 10: Full-Year Operating Profit Forecast
Full-Year Operating Profit (OP) Forecast Full-Year OP Forecast Improvement to JPY -11.3B Full-Year OP: JPY +1.8B Forecast Increase JPY JPY -11.3B -13.1B JPY -26.2B FY22/3 FY22/3 FY21/3 Results Previous Forecast Current Forecast （21/11/12）（Today） Copyright 2022 Japan Display Inc. All Rights Reserved
Slide 11: Full-Year Net Income Forecast
Full-Year Net Income (NI) Forecast Full-Year NI Forecast Improvement to JPY -8.4B Full-Year NI: JPY +10.0B Forecast Increase JPY JPY -8.4B -18.4B JPY -42.7B FY22/3 FY22/3 FY21/3 Results Previous Forecast Current Forecast （21/11/12）（Today） Copyright 2022 Japan Display Inc. All Rights Reserved. Slide
Slide 12: JDI Strategy: Strategic Focus KPI
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
Slide 13: JDI Raelclear Transparent Display: Creating Unique Customer Value
JDI Rælclear™ Transparent Display: Creating Unique Customer Value ≧84% glass-like transparency with JDI's advanced technological capabilities New communication tool featuring interactive image recognition Real-Time Translation Portable & Mobile Real-Time Speech to Text Key Benefits Customer Service
Slide 14: JDI Raelclear Transparent Display: Market Scope & Size
JDI Rælclear™ Transparent Display: Market Scope & Size Support communication across broad range of customer needs & languages Drive growth via global expansion Locations Future Use Cases • Financial: Banks, post offices • Creative interior spaces • Medical: Hospitals, pharmacies • Retail product inf
Slide 15: FY22/3 Q3 Earnings Review, FY22/3 Full-Year Forecast
FY22/3 Q3 Earnings Review FY22/3 Full-Year Forecast
Slide 16: FY22/3 Q3 Financial Results
FY22/3 Q3 Financial Results Chip shortage impact continued, but improved profitability due to a better product mix, cost reductions, and higher selling prices ◼ FY22/3 Q3 (3M) (JPY billion) FY21/3 FY22/3 FY21/3 FY22/3 YoY YoY Q3 Q3 Q3 Q3 • Sales were flat YoY. Strong Automotive Sales 72.7 71.7 -1.1
Slide 17: Sales by Product
Sales by Product Quarterly Sales by Product Sales by Product (JPY billion) Mobile (US/Euro) ◼ Mobile (YoY -23%, QoQ -19%) Mobile (China/Other) • US/Euro LCD sales fell while China sales increased due partly to higher selling prices 72.7 Automotive 71.7 YoY Non-Mobile • Vs. Nov 12 forecast: JPY +0.9B
Slide 18: FY22/3 Q3 Operating Loss +/- Factors
FY22/3 Q3 Operating Loss +/- Factors Operating Loss +/- Factors（YoY） Operating Loss +/- Factors (QoQ）（JPY billion）（JPY billion） FY22/3 Q3 FY22/3 Q3 FY22/3 Q2 FY22/3 Q3 Sales: 72.7 Sales: 71.7 Sales: 71.9 Sales: 71.7 -8.7 -3.1 -1.2 -3.1 Operating +1.4 Loss -0.7 +0.2 +0.2 Shipment vol. -0.9 Operatin
Slide 19: FY22/3 Full-Year Forecast
FY22/3 Full-Year Forecast Full-year sales forecast revised down due to chip shortage impacting production. Full-year earnings were revised up due to above-forecast Q3 results & passed on increased costs to selling price. Maintaining Q4 EBITDA profitability target <ref.> (JPY billion) FY20/3 FY21/3 F
Slide 20: Appendix
|_| Japan Display Inc. _ JDI Appendix
Slide 21: Sustainability & Decarbonization Initiatives
Sustainability & Decarbonization Initiatives Working towards the realization of a sustainable society by actively engaging with SDGs & other important social issues United Nations Global Compact Renewable Energy ◆ Joined United Nations Global Compact (UNGC) ◆ Joined Apple's 100% renewable energy ini
Slide 22: 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 c. -20% vs. FY20/3 122.6 119.1 – Manufacturing: Maximized throughput by improving productivity and yields – Company-Wide: Reduced SG
Slide 23: Towards Structural Profitability: Breakeven Point Reduction
Towards Structural Profitability: Breakeven Point Reduction Sharply reduced Breakeven Point on increased product profitability & cost reductions Reduced Breakeven Point by c. JPY 250B 580.1 (JPY billion) 401.4 325.0 Sales Breakeven Point 504.0 341.7 291.0 FY20/3 FY21/3 FY22/3 FCST Copyright 2022 Jap
Slide 24: 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） 41.2 37.9 312.9 34.9 101.9 103.5 88.1 162.6 78.2 69.7 49.6 56
Slide 25: Sales Breakdown by Product
Sales Breakdown by Product Quarterly Sales by Product (JPY billion) 111.8 88.0 63.1 72.7 71.9 71.7 69.2 66.0 Mobile (US/Euro) 14.2 55.4 25.3 18.7 22.0 21.4 Mobile (China/Other) 11.7 9.1 8.5 11.0 10.0 Automotive 8.7 26.4 Non-Mobile 6.3 24.1 24.0 25.3 23.9 20.9 14.8 15.5 15.0 14.1 15.0 16.0 19.4 11.5
Slide 26: Consolidated B/S
Consolidated B/S (JPY billion) FY21/3 FY21/3 FY22/3 YoY QoQ Q3 Q4 Q3 Cash and deposits 54.2 55.7 57.8 ＋3.6 ＋2.1 Accounts receivable - trade 27.9 31.2 32.3 ＋4.4 ＋1.1 Accounts receivable - other 19.2 15.3 18.3 -0.9 ＋3.0 Inventories 40.7 39.7 51.0 ＋10.3 ＋11.2 Other 2.2 4.3 5.0 ＋2.8 ＋0.7 Total current a
Slide 27: Consolidated P&L
Consolidated P&L (JPY billion) FY21/3 FY22/3 FY22/3 FY21/3 FY22/3 YoY QoQ YoY 3Q (3M) 2Q (3M) 3Q (3M) Q3 (9M) Q3 (9M) Sales 72.7 71.9 71.7 -1.1 -0.2 272.5 209.5 -63.0 EBITDA -5.7 1.0 -0.9 ＋4.7 -1.9 -7.8 -3.7 ＋4.1 Operating Profit (Loss) -8.7 -1.2 -3.1 ＋5.7 -1.9 -18.6 -10.1 ＋8.5 Net non-op. income (e
Slide 28: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (JPY billion) FY21/3 FY22/3 FY22/3 FY21/3 FY22/3 YoY QoQ YoY Q3 Q2 Q3 Q3 (9M) Q3 (9M) Income before income taxes 13.4 -1.3 2.8 -10.6 ＋4.2 -22.0 -5.2 ＋16.9 Dep. & Amort. 3.0 2.1 2.2 -0.9 ＋0.0 11.8 6.5 -5.3 Working capital 9.1 -3.2 -0.5 -9.7 ＋2.6 26.8 -8.2 -35.0 Advanc
Slide 30: 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 oth

Japan Display — Q3 FY2022/3 Earnings Presentation on 6ix

Japan Display — Q3 FY2022/3 Earnings Presentation

Slide 1: FY22/3 Q3 Corporate Presentation

Slide 2: PersonalTech For A Better World

Slide 3: FY22/3 Q3 Overview

Slide 4: FY22/3 Q3 Overview

Slide 5: Market Environment

Slide 6: Q3 EBITDA Improvement to JPY -0.9B

Slide 7: Q3 Operating Profit Improvement to JPY -3.1B

Slide 8: Q3 Net Income Improvement to JPY 2.4B

Slide 9: Full-Year EBITDA Forecast

Slide 10: Full-Year Operating Profit Forecast

Slide 11: Full-Year Net Income Forecast

Slide 12: JDI Strategy: Strategic Focus KPI

Slide 13: JDI Raelclear Transparent Display: Creating Unique Customer Value

Slide 14: JDI Raelclear Transparent Display: Market Scope & Size

Slide 15: FY22/3 Q3 Earnings Review, FY22/3 Full-Year Forecast

Slide 16: FY22/3 Q3 Financial Results

Slide 17: Sales by Product

Slide 18: FY22/3 Q3 Operating Loss +/- Factors

Slide 19: FY22/3 Full-Year Forecast

Slide 20: Appendix

Slide 21: Sustainability & Decarbonization Initiatives

Slide 22: Towards Structural Profitability: Fixed Cost Reductions

Slide 23: Towards Structural Profitability: Breakeven Point Reduction

Slide 24: Towards Structural Profitability: Diversified, Strong Product Portfolio

Slide 25: Sales Breakdown by Product

Slide 26: Consolidated B/S

Slide 27: Consolidated P&L

Slide 28: Consolidated Cash Flow Statement

Slide 29: PersonalTech For A Better World

Slide 30: Thank You!