Japan Display Inc. · TSE:6740

Japan Display — Q3 FY2025/3 Earnings Presentation

47 slides from Japan Display's earnings presentation, Feb 13, 2025

  1. Slide 1: FY25/3 Q3 Corporate Presentation

    FY25/3 Q3 Corporate Presentation February 13, 2025

  2. Slide 2: PersonalTech For A Better World

    PersonalTech For A Better World Copyright 2025 Japan Display Inc. All Rights Reserved. Slide 2

  3. Slide 3: FY25/3 Q3 Overview

    |_| Japan Display Inc. _ JDI FY25/3 Q3 Overview

  4. Slide 4: FY25/3 Q3 Overview ①

    FY25/3 Q3 Overview ① ◼ Decided to end production at Mobara Fab in March 2026 & consolidate at the Ishikawa Fab – Ishikawa Fab has lower fixed costs & G4.5 substrates = higher production efficiency for semiconductors, sensors, & micro-displays ◼ Ishikawa Fab will transform into a low-cost, highly fle

  5. Slide 5: FY25/3 Q3 Overview ②

    FY25/3 Q3 Overview ② ◼ JDI will end in-house OLED production, and will shift to a fabless model to build eLEAP displays with foundry partners & build a global eLEAP ecosystem ◼ Strategic investment in & partnership with OLEDWorks (US) to build advanced US display fab that will serve the defense, aut

  6. Slide 6: FY25/3 Q3 Overview ③

    FY25/3 Q3 Overview ③ ◼ Strategic alliances with PanelSemi (Taiwan) and TECH EXTENSION (TEX) to jointly develop and produce advanced semiconductor & sensor technology at JDI’s Ishikawa MULTI-FAB ◼ Partnering with TEX to deploying TEX’s world-leading next-generation 3D semiconductor integration techno

  7. Slide 7: FY25/3 Q3 Overview ④

    FY25/3 Q3 Overview ④ ◼ Q3 (9M) sales decreased 20.5% YoY on decreased LCD smartphone and VR shipments ◼ Despite lower sales, Q3 (9M) EBITDA and OP +10% and +14% YoY on stronger sales mix & fixed cost reductions ◼ Q3 (9M) Net Loss increased YoY & full-year forecast revised down due to recording of on

  8. Slide 8: FY25/3 Q3 Overview｜Automotive (Core)

    FY25/3 Q3 Overview｜Automotive (Core) Automotive Long-Term Growth Driver with Robust (JPY billion) Stability due to Long-Term Supply Contracts -5% 99.6 98.3 93.4 Ongoing Major Customer Engagements for eLEAP, 2VD, & Other NextGen JDI Tech Lower Sales on Discontinuing Low-Margin Products & Lower End-Cu

  9. Slide 9: FY25/3 Q3 Overview｜Smartwatch/VR (Core)

    FY25/3 Q3 Overview｜Smartwatch/VR (Core) Smartwatch/VR (JPY billion) Diverse Product Portfolio Offers Both Ongoing Growth & Stability -26% 56.6 Sales Down on Lower End-Customer 48.1 41.8 Demand eLEAP to Transition to Fabless Model with Foundry Partners FY23/3 Q3 FY24/3 Q3 FY25/3 Q3 (9M) (9M) (9M) Cop

  10. Slide 10: FY25/3 Q3 Overview｜LCD Smartphone (Non-Core)

    FY25/3 Q3 Overview｜LCD Smartphone (Non-Core) LCD Smartphone US/Euro 46.0 (JPY billion) Exiting Commoditized LCD Smartphone Business to Focus Engineering Resources 20.6 -70% 6.2 on JDI Proprietary NextGen Tech FY23/3 Q3 FY24/3 Q3 FY25/3 Q3 (9M) (9M) (9M) -67% YoY per Exit Strategy LCD Smartphone Chin

  11. Slide 11: FY25/3 Q3 Earnings Review

    |_| Japan Display Inc. _ JBI FY25/3 Q3 Earnings Review

  12. Slide 12: FY25/3 Q3 (9M) Earnings Summary

    FY25/3 Q3 (9M) Earnings Summary EBITDA ＆ OP Improvement Despite Lower Sales on Back of Stronger Product Mix & Fixed Cost Reductions. Net Loss Expanded on Recording One-Off Mobara & Tottori Fab Shutdown Costs & Impairments FY24/3 FY25/3 (Units: JPY billion) Q3 (9M) Q3 (9M) YoY Sales 180.4 143.5 -21%

  13. Slide 13: FY25/3 Q3 (3M) Earnings Summary

    FY25/3 Q3 (3M) Earnings Summary Despite Stronger Product Mix & Reduced Fixed Costs, EBITDA & OP Losses Widened on Lower Sales. Net Loss Expanded on Recording One- Off Mobara & Tottori Fab Shutdown Costs & Impairments FY24/3 FY25/3 (Units: JPY billion) Q3 (3M) Q3 (3M) YoY Sales 60.5 40.5 -33% Core bu

  14. Slide 14: FY25/3 Q3 (9M) Sales by Segments

    FY25/3 Q3 (9M) Sales by Segments Core (Automotive, Smartwatch/VR) Sales Down on Lower End-Customer Demand Non-Core LCD Smartphone Down on Strategic Downsizing 154.9 135.1 Automotive (YoY -5.0%) (JPY billion) Despite increased new product sales, down on Core Businesses 98.3 93.4 Automotive ending low

  15. Slide 15: FY25/3 Q3 (3M) Sales by Segments

    FY25/3 Q3 (3M) Sales by Segments Core Business (Automotive, Smartwatch/VR) Sales Down on Weaker End-Customer Demand LCD Smartphone Down on Strategic Downsizing 51.7 Automotive (YoY -18.2%) (JPY billion) 40.0 Despite increased new product sales, down on Core Businesses 35.2 Automotive ending low-marg

  16. Slide 16: FY25/3 Q3 (9M) Operating Profit (YoY)

    FY25/3 Q3 (9M) Operating Profit (YoY) Year on Year （JPY billion) FY24/3 Q3 (9M) FY25/3 Q3 (9M) (Actual) (Actual) Sales: 180.4 Sales: 143.5 -23.7 -27.7 Inventory USD/JPY efficiency 143→153 Operating Operating Loss Loss Copyright 2025 Japan Display Inc. All Rights Reserved. Slide 16

  17. Slide 17: FY25/3 Q3 (3M) Operating Profit (YoY)

    FY25/3 Q3 (3M) Operating Profit (YoY) Year on Year （JPY billion) FY24/3 Q3 (3M) FY25/3 Q3 (3M) (Actual) (Actual) Sales: 60.5 Sales: 40.5 -6.2 -8.3 USD/JPY 148→152 Operating Operating Loss Loss Copyright 2025 Japan Display Inc. All Rights Reserved. Slide 17

  18. Slide 18: FY25/3 Q3 (3M) Operating Profit (QoQ)

    FY25/3 Q3 (3M) Operating Profit (QoQ) Quarter on Quarter （JPY billion) FY25/3 Q2 (3M) FY25/3 Q3 (3M) (Actual) (Actual) Sales: 47.0 Sales: 40.5 -8.4 -8.3 USD/JPY Inventory 150→152 efficiency Operating Operating Loss Loss Copyright 2025 Japan Display Inc. All Rights Reserved. Slide 18

  19. Slide 19: FY25/3 Forecast

    |_| Japan Display Inc. _ JDI FY25/3 Forecast

  20. Slide 20: FY25/3 Forecast (Downward Revision)

    FY25/3 Forecast (Downward Revision) Full-Year Forecast Revised Down on Recording One-Off Mobara & Tottori Fab Shutdown Costs & Impairments (JPY billion) FY25/3 FY25/3 Full-Year Full-Year YoY Prev FCST New FCST Sales 180.0 180.0 +0.0 Automotive (Core) 119.7 119.7 +0.0 Smartwatch/VR (Core) 51.7 51.7 +

  21. Slide 21: BEYOND DISPLAY Creating A New JDI

    BEYOND DISPLAY Creating A New JDI

  22. Slide 22: BEYOND DISPLAY

    Creating A New JDI BEYOND DISPLAY Copyright 2025 Japan Display Inc. All Rights Reserved. Slide 22

  23. Slide 23: BEYOND DISPLAY: Deploy JDI Core Capabilities to High Growth Areas

    BEYOND DISPLAY: Deploy JDI Core Capabilities to High Growth Areas Core Capabilities Deep Robust World-Class Robust IP Customer Geopolitical Technology Portfolio Trust Position Robust IP portfolio comprising over World-class quality JDI offers Japan- JDI brings together 16,000 patents coupled with ba

  24. Slide 24: BEYOND DISPLAY Shift to Stronger Structural Profitability

    BEYOND DISPLAY Shift to Stronger Structural Profitability Semiconductor, Sensor, & Micro-Display Manufacturing Economics Inherently Superior to Mass-Market Displays Semiconductors, Sensors, & Micro-Displays Mass-Market Displays Miniaturization Principle Enlargement Principle 13” 13” 21” 21” Customer

  25. Slide 25: Ishikawa MULTI-FAB as Manufacturing Hub for BEYOND DISPLAY

    Ishikawa MULTI-FAB as Manufacturing Hub for BEYOND DISPLAY Ishikawa Fab to Become MULTI-FAB Highly Flexible, World-Leading Technology, & Low Cost Existing Gen 4.5 Consolidation of Ishikawa Equipment JDI’s Display, & Ishikawa Semiconductor, and Gen 6 Cell Equipment from Mobara Fab MULTI-FAB Sensor Bu

  26. Slide 26: Production End & Transformation of JDI's Mobara Fab

    Production End & Transformation of JDI’s Mobara Fab To Reduce Fixed Costs & Generate Significant Sales Gains, JDI is Ending Mobara Fab Display Production & Selling as AI Data Center Mobara Fab as Mobara Fab as Gen6 Display Fab AI Datacenter Technologically ▪ Mobara J1 building specs meet AI Datacent

  27. Slide 27: Full Mobara Fab Offering Provides AI Data Center Solution

    Production End & Transformation of JDI’s Mobara Fab Full Mobara Fab Offering (J1 & V3 areas) Provides Powerful AI Data Center Solution with Fast Time to Market to Serve Tokyo J1 Fab V3 Area ▪ Building with max 8m ceiling height V3 Area ▪ Building with max 2 tons/m2 floor loading capacity J1 Fab ▪ 8,

  28. Slide 28: Explosive Demand for Data Centers in Japan

    Explosive Demand for Data Centers in Japan ▪ Massive data processing capacity is required for generative AI as well as for high-demand computation & networking at nearby data centers ▪ Demand is growing exponentially, leading to an extreme demand for data centers in Japan Generative Cloud Telecom Co

  29. Slide 29: Critical Bottlenecks for Japan Data Center Buildout

    However, 3 Critical Bottlenecks for Japan Data Center Buildout Exploding Demand for Data Centers In Japan BUT 3 Critical Bottlenecks Shortage of appropriate Shortage of grid 5-year locations: Japan = hookups with leadtimes due 73% mountainous, access to high- to construction tsunami risk, good volta

  30. Slide 30: JDI Mobara Fab Opportunity for AI Data Center Serving Tokyo

    JDI Mobara Fab (J1 + V3) JDI’s Mobara Fab Provides Opportunity To Significantly Shrink Time to Market for AI Data Center that Serves Tokyo Land & Location Power/Infra Construction (J1+V3) (J1+v3) (J1+v3) Land Area: Power Supply Availability: 338,983 m2 Built-Out Floor Area: >100 MW 368,960 m2 57 km

  31. Slide 31: Strategic Alliance with TECH EXTENSION (TEX)

    Strategic Alliance with TECH EXTENSION (TEX) JDI and TEX to Partner in Creating a Powerfully Integrated and Streamlined Semiconductor Supply Chain at JDI’s Ishikawa MULTI-FAB Growing importance for WOW1 JDI’s & TEX’s combined stacking and COW2 horizontal and technology addresses these vertical chipl

  32. Slide 32: Jointly Launch Manufacturing Line at JDI's Ishikawa MULTI-FAB

    Strategic Alliance with TECH EXTENSION (TEX) Jointly Launch Manufacturing Line at JDI's Ishikawa MULTI-FAB Deploying Next-Gen 3D Semiconductor Integration Leveraging TEX’s World-Leading Technology TECH EXTENSION (TEX) JDI Ishikawa MULTI-FAB World’s most advanced 3D semiconductor Fab for advanced sem

  33. Slide 33: BBCube Era

    Strategic Alliance with TECH EXTENSION (TEX) BBCube Era Tera-byte BBCube on Your Finger For minimizing cost with a high energy efficiency, „Miniaturizing“ and a „Wafer-Scale 3D Process“ will be required. BBCube 3D BBCube＝Bumpless Build Cube Design-Process-Thermal Co-Optimized 300mm Wafer Process WOW

  34. Slide 34: Strategic Alliance with PanelSemi

    Strategic Alliance with PanelSemi JDI’s Partnership with PanelSemi to Accelerate Commercialization of New Substrates for Advanced Semiconductor Packaging & Sensors Handling large amounts of data between logic and memory is causing increased power consumption and associated heat, which exceeds the he

  35. Slide 35: JDI and PanelSemi Combined Expertise and Engineering Resources

    Strategic Alliance with PanelSemi JDI and PanelSemi to Leverage their Combined Expertise and Engineering Resources to Drive Rapid Commercialization PanelSemi Strengths JDI Strengths ▪ Leading engineers with deeply routed TFT ▪ High-density wiring technology and thin panel expertise and supply chain

  36. Slide 36: JDI Advanced Semiconductor Packaging Development Timeline

    JDI Advanced Semiconductor Packaging Development Timeline The combined alliances for advanced semiconductor packaging allow JDI to provide unique value to global customers TECH EXTENSION (TEX) PanelSemi Corporation JDI Enhancement of system performance, Cutting-edge processing technology for & & tog

  37. Slide 37: OLEDWorks Partnership for US Advanced Display Manufacturing

    OLEDWorks Partnership for US Advanced Display Manufacturing JDI is Partnering with OLEDWorks to Bring World-Leading Advanced Display Manufacturing to the United States OLEDWorks JDI ▪ Global leader in multi-stack OLED technology ▪ World-class know-how, technology, manufacturing, ▪ Strong presence in

  38. Slide 38: Key Elements of OLEDWorks' and JDI's Display Manufacturing Plan

    OLEDWorks Partnership for US Advanced Display Manufacturing Key Elements of OLEDWorks’ and JDI’s Display Manufacturing Plan ▪ Combination of world class display and OLED know-how, technology, manufacturing, and product capabilities ▪ Novel, scalable display manufacturing that will meet the needs of

  39. Slide 39: eLEAP Transitions to a Fabless Model

    eLEAP Transitions to a Fabless Model Going Forward Fabless eLEAP Production with Foundry Partners Fabless + Foundry Model: Now ✓ Increase eLEAP capacity eLEAP ✓ Speed up eLEAP time to market Line at ✓ Leverage foundry partners’ highly competitive Mobara J1 cost structures ✓ Reduce JDI capex JDI is i

  40. Slide 40: JDI Ishikawa MULTI-FAB + Fabless Display Production

    JDI Ishikawa MULTI-FAB + Fabless Display Production JDI is shifting Mobara Fab display production to Ishikawa Fab & Foundry Partners Ishikawa MULTI-FAB G6 Cell Production Facilities at Ishikawa MULTI-FAB (Transferred from Mobara to Ishikawa) G4.5 Production Facilities at Ishikawa MULTI-FAB JDI Displ

  41. Slide 41: Building Blocks Now in Place for BEYOND DISPLAY Strategy

    Building Blocks Now in Place for JDI’s BEYOND DISPLAY Strategy BEYOND DISPLAY Will Drive Radical Increase in JDI Earnings, Growth, & Value for Shareholders and All Stakeholders Production End & OLEDWorks Transformation of Strategic JDI’s Mobara J1 Investment & Fab to AI Partnership for Datacenter BE

  42. Slide 42: Appendix

    |_| Japan Display Inc. _ JDI Appendix

  43. Slide 43: Quarterly Sales Breakdown by Segments

    Quarterly Sales Breakdown by Segments 59.0 58.2 （JPY billion） 51.7 51.9 50.0 47.4 47.3 45.1 44.9 Core Businesses 41.4 40.0 39.7 34.0 Automotive 35.2 34.9 33.6 33.1 34.9 29.1 30.9 26.9 28.8 Smartwatch/VR 24.3 14.5 19.3 15.8 16.5 16.9 16.4 14.3 12.4 14.1 11.2 Non-Core Businesses 22.2 22.3 15.7 15.4 LC

  44. Slide 44: Consolidated B/S

    Consolidated B/S (JPY billion) FY24/3 FY25/3 Q3 vs. FY24/3 Cash and deposits 29.3 24.4 -4.9 Accounts receivable 29.3 21.4 -7.9 Accounts receivable (EMS) 17.9 9.6 -8.4 Inventories 64.0 65.8 ＋1.9 Other 11.5 5.4 -6.1 Total Current Assets 152.0 126.6 -25.3 Total Fixed Assets 72.0 49.8 -22.2 Total Assets

  45. Slide 45: Consolidated P&L

    Consolidated P&L (JPY billion) FY24/3 Q3 FY25/3 Q3 FY24/3 Q3 FY25/3 Q3 YoY YoY (9M) (9M) (3M) (3M) Sales 180.4 143.5 -36.9 60.5 40.5 -19.9 EBITDA -23.0 -20.7 ＋2.3 -4.9 -7.3 -2.4 Operating Profit -27.7 -23.7 ＋3.9 -6.2 -8.3 -2.0 Non-Operating Income 5.1 2.2 -2.9 1.4 1.2 -0.2 Non-Operating Expenses -3.

  46. Slide 46: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement (JPY billion) FY24/3 Q3 FY25/3 Q3 YoY (9M) (9M) Income before income taxes -37.4 -47.7 -10.4 Depreciation & amortization 4.7 3.1 -1.7 Impairment loss 11.0 20.9 ＋9.9 Change in working capital 13.8 5.0 -8.8 Other -3.4 -0.5 ＋2.9 Cash Flow from Operating Activities -11.2

  47. Slide 47: 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

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