Japan Display Inc. · TSE:6740
Japan Display — Q1 FY2022/3 Earnings Presentation
21 slides from Japan Display's earnings presentation, Aug 5, 2021
Slide 1: FY22/3 Q1 Corporate Presentation
FY22/3 Q1 Corporate Presentation August 5, 2021
Slide 2: FY22/3 Q1 Overview
| Japan Display Inc. JDI FY22/3 Q1 Overview
Slide 3: FY22/3 Q1 Overview
FY22/3 Q1 Overview ◼ Took actions to reduce the impact of the global semiconductor shortage and reduce the risk of production & order declines by working to stabilize supplies and sign long-term stable supply agreements with major chip suppliers ◼ Further cut fixed & variable costs, with operating l
Slide 4: Upward Revision of Full-Year Sales Forecast
Upward Revision of Full-Year Sales Forecast Revised up full-year sales forecast on reduced impact of semiconductor shortage, increased customer demand, & higher JDI product pricing Full-Year Sales Forecast +10.2% JPY JPY 280.0 254.0 bn bn Previous Forecast Revised Forecast (May 14) （August 5） Copyri
Slide 5: Market Environment
Market Environment Declining smartphone LCD demand in Mobile in sharp contrast to growing Automotive & Non-Mobile demand Current Forecast ☁ ☁ Mobile • Declining demand for LCD smartphones on major (US/Euro) customer OLED expansion Mobile (China/Other) • Strong demand for LCD smartphones, as share of
Slide 6: KOE Sale: Increase Competitiveness & Capital Efficiency
KOE Sale: Increase Competitiveness & Capital Efficiency ◼ Strengthen the competitiveness of JDI core automotive & industrial business and increase cost competitiveness of Taiwan manufacturing subsidiary KOE ◼ Shed assets and convert fixed costs to variable costs, increasing JDI operating flexibility
Slide 7: Ichigo Trust Equity Financing (Exercise of 12th Stock Acquisition Rights)
Ichigo Trust Equity Financing (Exercise of 12th Stock Acquisition Rights) Additional JPY 16.6bn Exercised, Unexercised Amount JPY 19.4bn ◆Exercise Details ◆Ichigo Trust Shareholding 12 th Stock Acquisition Outstanding No. of shares No. of voting Ichigo Trust Rights exercised shares rights (K) owners
Slide 8: PersonalTech For A Better World
PersonalTech For A Better World Copyright 2021 Japan Display Inc. All Rights Reserved. Slide 8
Slide 9: FY22/3 Q1 Earnings Review, Q2 Forecast
FY22/3 Q1 Earnings Review Q2 Forecast
Slide 10: FY22/3 Q1 Financial Results
FY22/3 Q1 Financial Results Sales lower YoY, but earnings improvement due to cost reductions (JPY billion) ◼ Due to lower mobile display demand, sales FY21/3 FY22/3 Q1 Q1 YoY decreased by JPY22bn YoY, of which JPY8.8bn was affected by the chip shortage. However, Sales 88.0 66.0 -22.0 relative to the
Slide 11: Sales by Product
Sales by Product Quarterly Sales by Product Sales by Product (JPY billion) Mobile (US/Euro) ◼ Mobile（YoY -51％、QoQ +1％） 88.0 Mobile (China/Other) • Orders fell sharply YoY due to increased customer Automotive use of OLED for smartphones (sales up slightly QoQ); Mobile % of total sales now <50% Non-Mo
Slide 12: Operating Income +/- Factors
Operating Income +/- Factors FY22/3 Q1 Operating Income +/- Factors（YoY） （JPY billion) ◼ Negative impact of lower sales FY21/3 Q1 FY22/3 Q1 was offset by lower costs due to improved yields and cost Sales 88.0 Sales 66.0 reductions & decreased (7.0) (5.9) writedowns, lowering operating loss Operating
Slide 13: Revised FY22/3 Full-Year Sales Forecast
Revised FY22/3 Full-Year Sales Forecast ◆vs. Previous Forecast (JPY billion) FY22/3 FY22/3 Change (Prev. FCST) (New FCST) Amount % Sales 254.0 280.0 ＋26.0 ＋10% ◼ Full-year sales forecast revised Mobile (US/Euro) 47.0 69.0 ＋22.0 ＋47% upward by JPY 26bn (+10%), of Mobile (China/Other) 34.0 35.0 ＋1.0 ＋
Slide 14: FY22/3 Q2 Sales & Operating Income Forecast
FY22/3 Q2 Sales & Operating Income Forecast ◆H1 (6M) (JPY billion) FY21/3 H1 FY22/3 H1 YoY ◼ In H1, Mobile (US/Euro) sales are (ACT) (FCST) Amount % forecast to decline significantly, taking Sales 199.8 134.0 -65.8 -33% total sales down 33% YOY (JPY 199.8 Mobile (US/Euro) 118.6 39.4 -79.2 -67% bn ->
Slide 15: Appendix
[| Japan Display Inc. JDI Appendix
Slide 16: Sales Breakdown by Product
Sales Breakdown by Product Quarterly Sales by Product (JPY billion) 111.8 Mobile (US/Euro) Mobile (China/Other) 88.0 Non-Mobile Automotive 63.1 72.7 69.2 66.0 55.4 25.3 18.7 21.4 9.1 8.5 11.0 8.7 6.3 15.5 15.0 14.1 15.0 11.5 24.1 24.0 25.3 20.9 14.8 FY20 1Q FY20 2Q FY20 3Q FY20 4Q FY21 1Q Copyright
Slide 17: Operating Income +/- Factors
Operating Income +/- Factors FY22/3 Q1 Operating Income +/- Factors（QoQ） （JPY billion） FY20 4Q FY21 1Q Sales 69.2 Sales 66.0 (7.6) (5.9) SG&A Operating Other Loss Operating Manufacturing Loss Shipment Fixed Cost ✔ Lower depreciation cost due to Vol. & fixed asset writedowns JPY 0.8bn Product Mix ✔ O
Slide 18: Consolidated B/S
Consolidated B/S (JPY billion) FY21/3 FY21/3 FY22/3 YoY QoQ Q1 Q4 Q1 Cash and deposits 45.2 55.7 44.7 -0.5 -11.0 Accounts receivable - trade 38.2 31.2 32.8 -5.4 ＋1.6 Accounts receivable - other 36.0 15.3 18.8 -17.2 ＋3.5 Inventories 47.1 39.7 43.6 -3.5 ＋3.8 Other 7.3 4.3 4.7 -2.5 ＋0.4 Total current a
Slide 19: Consolidated P&L
Consolidated P&L (JPY billion) FY21/3 FY21/3 FY22/3 YoY QoQ Q1 Q4 Q1 Sales 88.0 69.2 66.0 -22.0 -3.2 Cost of sales 87.0 68.9 64.6 -22.4 -4.3 Gross Profit (Loss) 1.0 0.2 1.4 ＋0.4 ＋1.1 SG&A 8.0 7.8 7.3 -0.8 -0.6 Operating Income (Loss) (7.0) (7.6) (5.9) ＋1.1 ＋1.7 Net non-op. income (expenses) (1.8) 0.
Slide 20: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (JPY billion) FY21/3 FY21/3 FY22/3 YoY QoQ Q1 Q4 Q1 Income before income taxes (16.0) (19.7) (6.7) ＋9.3 ＋13.0 Dep. & Amort. 4.4 2.9 2.2 -2.2 -0.8 Working capital 7.5 (6.2) (4.4) -11.9 ＋1.8 Advances received (6.5) (0.5) 3.0 ＋9.5 ＋3.5 Structural reform cost 7.7 0.0 0.0
Slide 21: 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