Japan Display Inc. · TSE:6740

Japan Display — Q3 FY2024/3 Earnings Presentation

32 slides from Japan Display's earnings presentation, Feb 9, 2024

  1. Slide 1: FY24/3 Q3 Corporate Presentation

    FY24/3 Q3 Corporate Presentation February 9, 2024

  2. Slide 2: Condolences for the Ishikawa earthquake

    We would like to express our deepest condolences to the families and friends of those who lost their lives in the Ishikawa earthquake, while extending our heartfelt sympathies to all those affected and our hopes for the earliest possible recovery Copyright 2024 Japan Display Inc. All Rights Reserved

  3. Slide 3: PersonalTech For A Better World

    PersonalTech For A Better World Copyright 2024 Japan Display Inc. All Rights Reserved. Slide 3

  4. Slide 4: FY24/3 Q3 Overview

    im” Japan Display Inc. IDI | FY24/3 Q3 Overview

  5. Slide 5: FY24/3 Q3 Overview (1)

    FY24/3 Q3 Overview (1)  JDI Ishikawa Fab severely impacted by M7.6 earthquake that hit Ishikawa Prefecture on New Year's Day  Experienced multiple burst pipes, water leaks, boiler stoppages, equipment damage, and machine misalignment  Immediately launched a 70-person recovery task force and comme

  6. Slide 6: FY24/3 Q3 Overview (2)

    FY24/3 Q3 Overview (2)  Strong growth in profitable & strategically important OLED business – Continuing market shift from LCD to OLED – JDI’s world-leading OLED technology driving strong customer demand & JDI market share growth – 100% fab utilization – customer demand exceeds capacity, will fill

  7. Slide 7: FY24/3 Q3 Overview (3)

    FY24/3 Q3 Overview (3)  In contrast, LCD business remains unprofitable & requires continued radical transformation – JDI is committed to getting it done – Relentless cost reductions – In line with METAGROWTH 2026 growth strategy, generate multiple new Global No. 1 technologies, products, & business

  8. Slide 8: FY24/3 Q3 Earnings

    im” Japan Display Inc. IDI | FY24/3 Q3 Earnings

  9. Slide 9: FY24/3 Q3 (9M) Earnings

    FY24/3 Q3 (9M) Earnings EBITDA & OP Above Plan on Positive FX & Cost Reductions Continued Focus on Radical Product Portfolio & Cost Structure Transformation To Drive Profitability ( Units: JPY ) Result vs. Plan Core businesses (Auto, OLED Smartwatch/VR) Sales 180.4B ＋1％ strong. Strategic downsizing

  10. Slide 10: FY24/3 Q3 (3M) Earnings Overview

    FY24/3 Q3 (3M) Earnings Overview Significant YoY EBTIDA & OP Improvement ( Units: JPY ) Result YoY Core businesses (Auto, OLED Smartwatch/VR) Sales 60.5B -13％ strong. Strategic downsizing of non-core LCD smartphone business continues Despite lower sales, significant YoY EBITDA -4.9B +3.6B improvemen

  11. Slide 11: Q3 (9M) Sales by Segments

    FY24/3 Q3 (9M) Sales by Segments OLED Smartwatch Growth on Strong Customer Demand Strategic Downsizing of Non-Core LCD Smartphone Business Continues Automotive (YoY -1.3％) 147.7 154.9 （JPY billion） Sales slightly down YoY due to withdrawals Core Business from unprofitable products – longer-term 99.6

  12. Slide 12: Q3 (3M) Sales by Segments

    FY24/3 Q3 (3M) Sales by Segments Automotive Sales Up Despite Withdrawal from Unprofitable Products OLED Smartwatch Extraordinarily Strong 51.7 47.4 （JPY billion） Automotive (YoY +6.5％) Core Business Sales increased YoY despite withdrawal from 33.1 35.2 Automotive unprofitable products Smartwatch/VR

  13. Slide 13: Q3 (9M) Operating Profit Change Breakdown

    FY24/3 Q3 (9M) Operating Profit Change Breakdown Operating Loss Expanded On Back of VR Sales Underperformance and Intensifying Competition of Automotive Business Despite Ongoing Fixed Cost Reductions （JPY billion） FY23/3 Q3 (9M) FY24/3 Q3 (9M) (Actual) (Actual) Sales: 208.0 Sales: 180.4 -22.4 Higash

  14. Slide 14: Q3 (3M) Operating Profit Change Breakdown

    FY24/3 Q3(3M) Operating Profit Change Breakdown Significant Improvement of Operating Loss On Back of Strong OLED Smartwatch Sales and Ongoing Fixed Cost Reductions （JPY billion） FY23/3 Q3 (3M) FY24/3 Q3 (3M) (Actual) (Actual) Sales: 69.7 Sales: 60.5 Accounting Higashiura Fab effects production end &

  15. Slide 15: FY24/3 Forecast

    El Japan Display Inc. JDI FY24/3 Forecast

  16. Slide 16: FY24/3 Forecast (Unchanged)

    FY24/3 Forecast (Unchanged) Q3 Performance Inline with Plan Decreased VR Sales Outlook Remains Unchanged (JPY billion) FY24/3 FY24/3 H1 H2 Full-Year Q3 (9M) Actual FCST FCST Actual Sales 119.9 127.1 247.0 180.4 Automotive 63.1 69.8 132.9 98.3 OLED Smartwatch/VR 40.1 39.0 79.1 56.6 LCD Smartphone (US

  17. Slide 17: Business Update

    El Japan Display Inc. JDI Business Update

  18. Slide 18: Ishikawa Earthquake & Fab Recovery

    Ishikawa Earthquake & Fab Recovery JDI Ishikawa Fab January 1st: M7.6 Earthquake hit Ishikawa  JDI Ishikawa Fab experienced multiple burst pipes, water leaks, boiler stoppages, equipment damage, and machine misalignment January 2 nd: Immediate Response  Immediately launched 70-person recovery task

  19. Slide 19: Strong Growth in Profitable & Strategically Important OLED Business

    Strong Growth in Profitable & Strategically Important OLED Business  Continuing market shift from LCD to OLED OLED  JDI’s world-leading OLED technology driving strong customer demand & JDI market share growth +76%  100% fab utilization – customer demand exceeds capacity, will fill increased deman

  20. Slide 20: JDI Large-Scale eLEAP Project in Wuhu, China

    JDI Large-Scale eLEAP Project in Wuhu, China Wuhu JDI  JDI signed a memorandum of understanding (MOU) with the Wuhu Economic and Technical Development Zone on September 29, 2023, and discussions are progressing smoothly  Will increase JDI’s eLEAP production capacity by >50X  Extremely important s

  21. Slide 21: eLEAP (NextGen OLED)

    eLEAP (NextGen OLED)  environment positive eLEAP  Lithography with maskless deposition  Extreme long life, low power, & high luminance  Any shape Patterning Copyright 2024 Japan Display Inc. All Rights Reserved. Slide 21

  22. Slide 22: eLEAP's Unprecedented Customer Value

    eLEAP’s Unprecedented Customer Value High Long Brightness (2X) Lifetime (3X) Lifetime New After 1yr After 3yrs After 5yrs Comparison 0h 1000h 3000h 5000h Conventional OLED eLEAP 28% 60% Conventional eLEAP OLED Brightness, vividness & free shapes unimaginable with existing technology eLEAP ※ Image as

  23. Slide 23: eLEAP's Unprecedented Environmental Value

    eLEAP’s Unprecedented Environmental Value Maskless OLED deposition is a breakthrough, environment positive production process that eliminates mask cleaning chemicals 150k tons p.a. of CO2 emission reduction via deployment at JDI Mobara 150k tons of yearly CO2 emissions = CO2 Cedar forest Absorption

  24. Slide 24: LCD Business Requires Continued Radical Transformation

    LCD Business Requires Continued Radical Transformation Requirements Opportunities 1. Relentless cost reductions 1. Tight supply for high- performance LTPS LCD, at 2. In line with METAGROWTH which JDI excels 2026 growth strategy, generate multiple new 2. Geopolitical risk moving Global No. 1 technolo

  25. Slide 25: METAGROWTH 2026 – Self-Care Tailored for You

    METAGROWTH 2026 – New Technology, Products, & Businesses Self-Care Tailored for You Virgo presentation available at: https://ssl4.eir-parts.net/doc/6740/tdnet/2392184/00.pdf Copyright 2024 Japan Display Inc. All Rights Reserved. Slide 25

  26. Slide 26: Appendix

    El Japan Display Inc. JDI Appendix

  27. Slide 27: Quarterly Sales Breakdown by Segments

    Quarterly Sales Breakdown by Segments （JPY billion） Core Business 56.8 59.0 58.2 51.7 45.8 47.4 47.3 44.9 39.8 41.4 35.9 34.0 Automotive 35.7 39.7 26.4 35.2 23.9 26.9 33.1 34.9 29.1 Smartwatch/VR 20.9 19.4 21.1 19.3 24.3 15.0 16.0 14.5 14.3 12.4 15.8 16.5 Non-Core Business 30.1 32.1 29.6 LCD Smartph

  28. Slide 28: Q3 Operating Profit Breakdown

    FY24/3 Q3 Operating Profit Breakdown QoQ （JPY billion） FY24/3 Q2 FY24/3 Q3 Sales: 66.9 Sales: 60.5 Accounting Effect USD/JPY 145→148 Operating FX Material Fixed Operating Volume Mix Other Profit Impact Costs Costs Profit Copyright 2024 Japan Display Inc. All Rights Reserved. Slide 28

  29. Slide 29: Consolidated B/S

    Consolidated B/S (JPY billion) FY23/3 FY24/3 Q3 vs. FY23/3 Cash and deposits 26.2 28.1 ＋1.9 Accounts receivable - trade 40.9 26.6 -14.3 Accounts receivable - other 18.3 16.3 -2.0 Inventories 60.3 63.1 ＋2.8 Other 5.1 5.3 ＋0.2 Total current assets 150.9 139.3 -11.5 Total non-current assets 71.8 77.2 ＋

  30. Slide 30: Consolidated P&L

    Consolidated P&L FY23/3 Q3 FY24/3 Q3 (JPY billion) FY23/3 Q3 FY24/3 Q3 YoY YoY (9M) (9M) Sales 69.7 60.5 -9.2 208.0 180.4 -27.7 EBITDA -8.5 -4.9 ＋3.6 -16.0 -23.0 -7.0 Operating Profit -10.6 -6.2 ＋4.4 -22.4 -27.7 -5.3 Non-Operating Income 0.6 1.4 ＋0.8 3.9 5.1 ＋1.2 Non-Operating Expenses -2.5 -2.5 ＋0.

  31. Slide 31: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement FY23/3 Q3 FY24/3 Q3 (JPY billion) FY24/3 Q2 FY24/3 Q3 YoY (9M) (9M) Income before income taxes -16.1 -9.1 -13.7 -37.4 -23.6 Depreciation & amortization 1.6 1.4 6.4 4.7 -1.7 Working capital 6.3 4.3 -12.1 13.8 ＋25.9 Gain on sale of subsidiary shares 0.0 0.0 -13.5 0.0 ＋

  32. Slide 32: 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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