FY26/3 Q3 Earnings

February 12, 2026

Inquiries: Ken Hirabayashi, CFO

Telephone: +81-3-6732-8100 https://www.j-display.com/en/ Supplemental Explanatory Materials for Earnings Results: Available Earnings Results Briefing: February 12, 2026

(for institutional investors and analysts - Japanese only)

1. FY26/3 Q3 Consolidated Financial Results (April 1, 2025 to December 31, 2025)

   1. Consolidated Financial Results

      	Sales (JPY M) YoY		EBITDA (JPY M) YoY		Operating Profit (JPY M) YoY		Recurring Profit (JPY M) YoY		Net Income (JPY M) YoY
      FY26/3 Q3	97,276	-32.2%	-15,699	-	-18,730	-	-25,030	-	-14,533	-
      FY25/3 Q3	143,460	-20.5%	-20,700	-	-23,735	-	-26,047	-	-48,770	-

      EBITDA = Operating Profit + Depreciation

      (Reference) Comprehensive Income FY26/3 Q3: JPY -12,787M FY25/3 Q3: JPY -48,522M

      	EPS (Basic, JPY)	EPS (Diluted, JPY)
      FY26/3 Q3	-2.35	-
      FY25/3 Q3	-7.88	-

   2. Consolidated Financial Position

      	Total Assets (JPY M)	Net Assets (JPY M)	Shareholders' Equity Ratio
      FY26/3 Q3	138,560	-6,031	-4.4%
      FY25/3	148,031	6,890	4.5%

      (Reference) Shareholders' Equity FY26/3 Q3: JPY -6,137M FY25/3: JPY 6,649M

   3. Consolidated Cash Flows

   	Cash Flows from Operations (JPY M)	Cash Flows from Investments (JPY M)	Cash Flows from Financing (JPY M)	Cash and Cash Equivalents at Period-End (JPY M)
   FY26/3 Q3	-19,140	22,652	5,074	30,888
   FY25/3 Q3	-19,298	-4,407	18,256	23,753

2. Dividends

   	Dividend per Share (JPY)
   	Q1	Q2	Q3	Q4	Total
   FY25/3	-	0.00	-	0.00	0.00
   FY26/3	-	0.00	-
   FY26/3 (Forecast)				0.00	0.00

   Note 1. Changes from the most recently announced dividend forecast: None

   2. The above shows dividends for common shares. For preferred shares, please see "4. Other Information (5) Dividends for Preferred Shares" below.

3. FY26/3 Consolidated Earnings Forecast

   JDI is currently taking a number of actions to grow its earnings and strengthen its financial position. As financial results may vary depending on the terms of the agreement related to the sale of the Mobara Fab, JDI is not disclosing FY26/3 consolidated earnings forecast at this time.

   For more information, please see "5. Earnings Outlook" on page 3.

4. Other Information

   1. Significant changes in the scope of consolidation during the period: None

      • Newly included: None

      • Excluded: None

   2. Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes

   3. Changes in accounting policies, changes in accounting estimates, and restatements

      1. Accounting policy changes based on amendments to accounting standards: None

      2. Accounting policy changes other than (i) above: None

      3. Accounting estimate changes: Yes

      4. Restatements: None

   4. Number of shares outstanding

      1. Number of shares outstanding (including treasury shares) at period-end FY26/3 Q3: 3,880,393,562

         FY25/3: 3,880,393,562

      2. Number of treasury shares at period-end FY26/3 Q3: 67

         FY25/3: 67

      3. Average number of shares outstanding (excluding treasury shares) during the period FY26/3 Q3: 6,188,721,284

      FY25/3 Q3: 6,188,721,284

      Note All preferred shares outstanding have the same rights as common shares with regard to rights to receive dividends, and are therefore included in the number of shares outstanding.

   5. Dividends for Preferred Shares

      Class E Preferred Shares	Dividend per Share (JPY)
      	Q1	Q2	Q3	Q4	Total
      FY25/3	-	0.00	-	0.00	0.00
      FY26/3	-	0.00	-
      FY26/3 (Forecast)				0.00	0.00

   6. Note on Appropriate Use of Forecasts

   Forward-looking statements contained in these materials are based on judgements regarding information available to JDI as of the announcement date. However, these statements involve risk and uncertainties, and actual earnings may differ significantly from the indicated forecasts.

5. Earnings Outlook

   JDI continues to advance its structural reforms to accelerate its earnings recovery and strengthen its financial base. JDI is progressing the optimization of its workforce structure following the voluntary retirement program announced in May 2025. In addition, the end of production in November 2025 at the Mobara Fab, which had a significant fixed-cost burden, will generate material cost reductions, including reductions in fixed costs, going forward.

   JDI is also engaged in discussions with potential buyers to pursue a sale of the Mobara Fab. This will not only improve JDI's financial health, but also reduce interest payments through the repayment of borrowings.

   JDI is not disclosing FY26/3 consolidated earnings forecast at this time, as financial results may vary depending on the terms of the agreement related to the sale of the Mobara Fab. JDI remains committed to executing its business model transformation and transitioning to a management structure aligned with its business scale, with the goal of delivering operating profitability from FY27/3.

6. Consolidated Financial Statements

1. Consolidated Balance Sheet (FY26/3 Q3)

   		(JPY million)
   	FY25/3 (Mar 31, 2025)	FY26/3 Q3 (Dec 31, 2025)
   Assets
   Current Assets
   Cash and deposits	21,073	31,444
   Accounts receivable - trade	22,800	13,407
   Accounts receivable - other	7,379	9,581
   Finished products and goods	14,025	12,168
   Work in process	11,465	11,119
   Raw materials and supplies	18,584	12,987
   Other	4,916	3,625
   Allowance for doubtful accounts	-90	-149
   Total Current Assets	100,156	94,183
   Non-Current Assets
   Property, Plant, and Equipment
   Buildings and structures, net	30,491	29,021
   Machinery, equipment, and vehicles, net	1,845	1,211
   Land	6,509	6,509
   Lease assets, net	693	478
   Construction in progress	1,523	1,087
   Other, net	938	802
   Total Property, Plant, and Equipment	42,001	39,112
   Intangible Assets
   Other	1,190	335
   Total Intangible Assets	1,190	335
   Investments and Other Assets
   Securities investments	3,110	3,357
   Other	1,573	1,573
   Allowance for doubtful accounts	-1	-1
   Total Investments and Other Assets	4,682	4,929
   Total Non-Current Assets	47,875	44,376
   Total Assets	148,031	138,560

   		(JPY million)
   	FY25/3 (Mar31,2025)	FY26/3 Q3 (Dec 31, 2025)
   Liabilities
   Current Liabilities
   Accounts payable	28,160	23,548
   Short-term loans payable	59,500	65,000
   Accounts payable - other	7,109	8,169
   Income tax payable	77	107
   EMS finished products and goods repurchase commitments	8,290	7,990
   Provision for bonuses	1,392	715
   Advances received	7,176	14,364
   Provision for business restructuring	3,451	11,620
   Provision for contract losses	3,273	3,146
   Other	6,416	4,469
   Total Current Liabilities	124,850	139,133
   Fixed Liabilities
   Long-term income tax payable	11	-
   Provision for business restructuring	10,351	2,643
   Defined benefit pension liability	2,244	105
   Other	3,683	2,890
   Total Fixed Liabilities	16,291	5,458
   Total Liabilities	141,141	144,592
   Net Assets
   Shareholders' Equity
   Capital	100	100
   Capital reserve	141,205	141,205
   Retained earnings	-144,664	-159,198
   Treasury shares	0	0
   Total Shareholders' Equity	-3,358	-17,892
   Accumulated Other Comprehensive Income
   Valuation difference on other securities	-	0
   Foreign currency translation adjustment	5,948	8,499
   Adjusted value of defined benefit pension	4,059	3,254
   Total Accumulated Other Comprehensive Income	10,008	11,754
   Stock Acquisition Rights	240	105
   Total Net Assets	6,890	-6,031
   Total Liabilities & Net Assets	148,031	138,560

2. Consolidated Income Statement (FY26/3 Q3)

   		(JPY million)
   FY25/3 Q3 (Apr 1, 2024 to Dec 31, 2024)		FY26/3 Q3 (Apr 1, 2025 to Dec 31, 2025)
   Sales	143,460	97,276
   Cost of Goods Sold	145,814	99,686
   Gross Profit (Loss)	-2,353	-2,409
   SG&A	21,381	16,320
   Operating Profit (Loss)	-23,735	-18,730
   Non-Operating Income
   Interest income	198	132
   Foreign exchange gains	826	-
   Rental income	143	102
   Business services income	-	251
   Recoveries of written down receivables	410	-
   Gain on sale of raw materials	109	370
   Other	560	549
   Total Non-Operating Income	2,249	1,405
   Non-Operating Expenses
   Interest expense	3,011	6,322
   Foreign exchange losses	-	155
   Other	1,550	1,228
   Total Non-Operating Expenses	4,561	7,706
   Recurring Profit (Loss)	-26,047	-25,030
   Extraordinary Income
   Gain on sale of fixed assets	1,830	24
   Gain on sale of subsidiary shares	-	18,533
   Gain on termination of retirement benefit plan	-	2,752
   Gain on reversal of stock acquisition rights	-	234
   Other	-	1,708
   Total Extraordinary Income	1,830	23,254
   Extraordinary Losses
   Impairment loss	20,899	744
   Decreased securities valuation (venture investment)	219	15
   Business restructuring expenses	2,405	11,275
   Total Extraordinary Losses	23,524	12,035
   Pre-Tax Income (Loss)	-47,741	-13,811
   Income Taxes	1,028	721
   Pre-Minority Interest Net Income (Loss)	-48,770	-14,533
   Net Income (Loss)	-48,770	-14,533

   Consolidated Statement of Comprehensive Income (FY26/3 Q3)

   		(JPY million)
   FY25/3 Q3 (Apr 1, 2024 to Dec 31, 2024)		FY26/3 Q3 (Apr 1, 2025 to Dec 31, 2025)
   Net Income (Loss)	-48,770	-14,533
   Other Comprehensive Income
   Valuation difference on other securities	-1	0
   Foreign currency translation adjustment	717	2,551
   Adjusted value of defined benefit pension, net of tax	-468	-805
   Total Other Comprehensive Income	248	1,746
   Comprehensive Income	-48,522	-12,787
   of which, Comprehensive Income attributable to owners of the parent	-48,522	-12,787

3. Consolidated Cash Flow Statement (FY26/3 Q3)

1. Consolidated Earnings

   (JPY million)		FY25/3				FY26/3
   		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
   	Consumer/Industrial	22,270	16,059	11,755	12,068	6,278	7,219	4,960
   	Automotive	33,646	30,936	28,790	32,483	26,164	26,768	25,885
   Sales1		55,917	46,996	40,546	44,552	32,443	33,987	30,846
   EBITDA2		-6,010	-7,436	-7,254	-12,347	-8,088	-4,272	-3,338
   Operating Profit		-7,043	-8,437	-8,253	-13,333	-9,154	-5,278	-4,297
   Recurring Profit		-7,855	-9,476	-8,715	-14,368	-11,986	-7,114	-5,929
   Net Income		-6,504	-10,317	-31,948	-29,450	-20,256	8,893	-3,169
   EPS (Basic)		-1.05	-1.67	-5.16	-4.76	-3.27	1.44	-0.51
   USD/JPY (Avg)		155.9	149.7	152.4	152.6	144.6	147.5	154.1
   USD/JPY (Q-End)		161.1	142.7	158.2	149.5	144.8	148.9	156.6

   1From FY26/3 Q1, JDI reclassified its sales categories by merging "Smartwatch/VR" and "LCD Smartphone" into "Consumer/Industrial," reflecting the LCD smartphone business downsizing. Figures for FY25/3 have also been reclassified accordingly for comparison purposes.

   2EBITDA = Operating Profit + Depreciation

2. Financial Position

   (JPY million)	FY25/3				FY26/3
   	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
   Assets	212,016	197,152	176,456	148,031	141,390	149,426	138,560
   Liabilities	131,339	129,841	139,317	141,141	154,353	153,491	144,592
   Net Assets	80,677	67,310	37,139	6,890	-12,962	-4,065	-6,031
   Shareholder Equity Ratio	37.9%	34.0%	20.9%	4.5%	-9.3%	-2.8%	-4.4%
   Operating CF	-116	-16,428	-2,753	-6,151	-9,982	-2,818	-6,399
   Investing CF	3,396	-1,235	-6,567	-3,754	11,792	10,385	474
   Financing CF	-148	10,445	7,960	7,437	5,448	-73	-300
   Ending Cash Bal.	33,258	23,682	23,753	20,432	27,654	35,720	30,888
   Free Cash Flow	-1,987	-17,775	-6,229	-9,973	-10,097	-2,908	-6,617

3. R&D & Depreciation