Japan Display Inc. · TSE:6740
Japan Display — FY2018 Earnings Presentation
14 slides from Japan Display's earnings presentation, May 15, 2019
Slide 1: Financial Results Fourth Quarter & Full Year Fiscal 2018
Financial Results Fourth Quarter & Full Year Fiscal 2018 Japan Display Inc. May 15, 2019
Slide 2: Summary of Q4-FY18 Results
Summary of Q4-FY18 Results QoQ: Sales down 32% mainly due to display demand for smart phones failing to recover & seasonal factors. Gross profit fell due to lower sales, an unfavorable product mix, a lower fab utilization rate and greater inventory write-down. Also, an operating loss of ¥20.4bn, a
Slide 3: Summary of FY 2018 Results
Summary of FY 2018 Results An initially expected increase in 2H of FULL ACTIVE™ shipments for smartphones did not reach the anticipated level, leading net sales to fall 11.3% YoY (Feb. 14 forecast: approx. -10% YoY). Structural reforms implemented in FY17 reduced fixed costs, but lower than expe
Slide 4: Sales Breakdown by Region/Category
Sales Breakdown by Region/Category Mobile category: Down 39% QoQ to ¥127.5bn due to the market downturn and other reasons such as lower seasonal demand. Sales to US/China decreased substantially. Full-year sales decreased by 17% YoY to ¥466.9bn. Especially the decrease regarding the Chinese market
Slide 5: Q4-FY 2018 Operating Results
Q4-FY 2018 Operating Results (Billion yen) Q4-FY18 Q4-FY17 YoY Chg. Q3-FY18 QoQ Chg. Net sales 171.3 151.9 +19.4 ＋12.8% 251.1 (79.7) －31.8% Cost of sales 178.9 159.9 +19.1 ＋11.9% 235.7 (56.7) －24.1% Gross profit (loss) (7.6) (7.9) +0.3 - 15.4 (23.0) - -4.4% -5.2% 6.1% SG&A 12.7 14.9 (2.2) －14.5% 11.
Slide 6: FY 2018 Operating Results
FY 2018 Operating Results (Billion yen) FY2018 FY2017 YoY Chg. Net sales 636.7 717.5 (80.9) －11.3% Cost of sales 620.4 720.2 (99.8) －13.9% Gross profit 16.3 (2.6) +18.9 - 2.6% -0.4% SG&A 47.3 59.1 (11.8) －20.0% Operating income (loss) (31.0) (61.7) +30.8 - -4.9% -8.6% Net non-op. income (expenses) (
Slide 7: Operating Profit Change Factors (Q4)
Operating Profit Change Factors (Q4) vs. Previous Year (Q4-FY17) vs. Previous Quarter (Q3-FY18) (Billion yen) Sales Sales 151.9 171.3 251.1 171.3 3.8 (22.9) (20.4) (20.4) ＋8.5 (11.3) ＋1.4 (9.8) ＋3.0 ＋2.2 (0.1) (1.2) ＋0.1 (14.5) Q4 Shipment volume & Mfg. fixed Inventory Q4 Q3 Shipment volume & Mfg. f
Slide 8: Operating Profit Change Factors (FY18)
Operating Profit Change Factors (FY18) vs. Previous Year (FY17） (Billion yen) Net sales 717.5 636.7 (61.7) (31.0) ＋11.8 ＋9.5 (0.5) ＋42.1 (32.2) Shipment Mfg. volume & Inventory FY17 product mix fixed cost impact FX SGA FY18 Copyright © 2019 Japan Display Inc. All Rights Reserved. 8
Slide 9: Balance Sheet
Balance Sheet (Billion yen) 3/2019 12/2018 3/2018 Cash and deposits 69.0 54.4 80.9 Accounts receivable - trade 92.2 119.4 82.9 Accounts receivable - other 49.7 80.6 42.8 Inventories 71.1 80.4 58.2 Other 8.9 11.2 6.1 Total current assets 290.9 345.9 270.8 Total non-current assets 254.5 334.0 343.9 To
Slide 10: Cash Flows
Cash Flows ■JGAAP ■ Internal business administration (Advances received are included in Operating CF) (Advances received are regarded as long-term liabilities & included in financing CF) (Billion yen) (Billion yen) FY2018 FY2017 FY2018 FY2017 Income bef. income taxes (106.7) (237.4) Income bef. inco
Slide 11: FY 2019 Forecast
FY 2019 Forecast In the 1H of FY 2019, net sales are expected to decrease by approx. 10% YoY (FY18 1H: ¥214.3bn) due to the continuation of the severe business environment, sluggish demand owing to seasonality in the mobile category and inventory adjustments by customers. In the 2H, sales are ex
Slide 12: Outline of Structural Reforms
Outline of Structural Reforms The fixed cost reduction benefits due to a write-down and structural reforms is expected to be approx. ¥20bn in FY 2019 Items Contents Costs & benefits Asset write-down Asset write-down Impairment losses: related to • Hakusan Plant (buildings, ¥75.2bn (of which, Hak
Slide 13: Reflections on FY18 and FY19 Initiatives
Reflections on FY18 and FY19 Initiatives • Structural reforms implemented in FY17 reduced fixed costs by more than ¥50bn, but this wasn't enough since Reflections mobile category sales were significantly lower than on FY18 forecast. • Though automotive & non-mobile category sales saw positive YoY gr
Slide 14: 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