Japan Display Inc. · TSE:6740
Japan Display — FY2019 Earnings Presentation
16 slides from Japan Display's earnings presentation, Jun 30, 2020
Slide 1: Financial Results Fourth Quarter & Full Year of Fiscal Year 2019
Financial Results Fourth Quarter & Full Year of Fiscal Year 2019 Japan Display Inc. June 30, 2020
Slide 2: Summary of 4Q & 2H of FY19 Results
Summary of 4Q ＆ 2H of FY19 Results ■ Though 2H-FY19 sales fell sharply YoY (down Y156.1bn), a significantly improved BEP enabled by structural reforms in the 1H reduced the operating loss by Y12.1bn to Y3.3bn. ■ Due in part to an extraordinary gain on the transfer of JOLED shares, the 2H finished in
Slide 3: Summary of FY19 Results
Summary of FY19 Results ■ Lack of 2H growth versus FY18 in smartphone display sales, withdrawal of unprofitable products and Covid-19 led FY19 sales to fall Y132.6bn YoY (-21%). ■ Structural reforms to generate Y50bn/yr in fixed cost reductions were implemented in 1H, reducing costs by about Y30bn i
Slide 4: Quarterly Sales by Region & Business Category
Quarterly Sales by Region & Business Category Quarterly Sales Trend Sales Status per Category (Billion yen) 251.1 US/Euro ■ Mobile Category China Mobile • FY19 sales fell 25% YoY due to lack of Other regions 2H growth vs. large FY18 sales & Non-mobile withdrawal of unprofitable products. Automotive
Slide 5: Q4-FY19 Operating Results
Q4-FY19 Operating Results (Billion yen) Q4-FY19 Q4-FY18 YoY Chg. Q3-FY19 QoQ Chg. Net sales 116.2 171.3 (55.1) －32.2% 150.0 (33.8) －22.5% Cost of sales 112.9 178.1 (65.2) －36.6% 139.1 (26.2) －18.8% Gross profit (loss) 3.4 (6.8) +10.2 - 10.9 (7.6) －69.3% 2.9% -4.0% 7.3% SG&A 9.3 13.0 (3.7) －28.8% 8.4
Slide 6: FY2019 Operating Results
FY2019 Operating Results (Billion yen) FY19 FY18 YoY Chg. Net sales 504.0 636.7 (132.6) －20.8% Cost of sales 505.4 615.4 (110.0) －17.9% Gross profit (1.4) 21.2 (22.6) - -0.3% 3.3% SG&A 37.1 48.5 (11.3) －23.4% Operating income (loss) (38.5) (27.2) (11.3) - -7.6% -4.3% Net non-op. income (expenses) (1
Slide 7: Operating Profit Change Factors
Operating Profit Change Factors （億円） vs. Previous Year (Q4-FY18) vs. Previous Quarter (Q4-FY19) Q4-FY18 Q4-FY19 Q4-FY19 Q3-FY19 Q4-FY19 Q4-FY19 (excl. Covid-19 (incl. Covid-19 (excl.Covid-19 (incl. Covid-19 (previous year) (previous quarter) impact) impact) impact) impact) Sales 116.2 Sales 150.0 Sa
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet (Billion yen) 2019/3 2019/12 2020/3 Cash and deposits 69.0 49.1 66.7 Accounts receivable - trade 92.2 78.0 70.9 Accounts receivable - other 49.7 64.8 48.1 Inventories 70.9 43.5 39.1 Other 8.8 8.7 4.6 Total current assets 290.6 244.2 229.4 Total non-current assets 247.9 183
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows (Billion yen) FY18 1H-FY19 2H-FY19 FY19 Income before income taxes (103.8) (103.0) 4.6 (98.4) Dep. & Amort. 43.7 11.3 9.3 20.7 Working capital 31.2 (15.7) (20.4) (36.1) Advances received (26.3) (10.3) (2.5) (12.8) Business restructuring expenses 76.1 59.7 7.5 67.2 Other (27.4
Slide 10: FY 2020: First Year of Turnaround
FY 2020: First Year of Turnaround Minimize the impact of Covid-19 ＆ rebuild earnings base to recoup earnings and grow ■1Q-FY20 Est. ■ FY20 outlook (bn yen) Sales: down 15-20% vs. FY19 Q1-FY19 Q1-FY20 (Actual) (Est) • Impact of Covid-19: Net sales 90.4 85.0-89.0 Production: Some still affected, but a
Slide 11: Measures: Carte Blanche Structural Reforms
Carte Blanche Structural Reforms Go back to basics, take pride as a "technology company" & regain "added value" Strengthen governance Applying global best practices, increase internal awareness of governance priorities, transition to a company w/committees (nominating etc.) & strengthen internal con
Slide 12: Important measures: Strengthen Governance
Strengthen Governance The Governance Improvement Committee, established in April 2020, thoroughly analyzes the causes of inappropriate accounting, prevents recurrence and improves governance; the Board of Directors implements resolutions based on Committee reports. (1) Change internal awareness rega
Slide 13: Rebuild the Earnings Base
Rebuild the Earnings Base 白山工場 ◼ Asset optimization • Completed partial sale of Hakusan Plant • Study further optimization ◼ Strengthen cost competitiveness 茂原工場 • From "ultra high-specs" to "performance that customers 石川工場 truly want" • Promote “commonization” & “high quality” by fully exploiting t
Slide 14: JDI Technology is a Door to the Future
JDI Technology is a Door to the Future ・Evolving powerful backplane technology ・Able to offer diverse value by combining with frontplane technology LCD OLED Sensor etc. Front- Sensor LCD OLED plane materials etc. Back- LTPS/ LTPS/ LTPS/ Ad-LTPS Ad-LTPS Ad-LTPS plane Ad-LTPS: Glass Sheet-type Stretch
Slide 15: Establish the New Revenue Source
Venture into healthcare by engaging Establish the New Revenue Source the current/post Covid-19 society ◼ Application development using JDI core technology • Biometric sensors that apply our highly developed display backplane technology*1 • Sensing displays that support hover operation plus high imag
Slide 16: 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