[Provisional Translation Only]

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FY24/3 H1 Earnings

November 10, 2023

Japan Display Inc. (JDI) (Tokyo Stock Exchange Prime Market, 6740) Representative: Scott Callon, Chairman & CEO

Inquiries: Haruhiko Sakaguchi, CFO

Telephone: +81-3-6732-8100www.j-display.com/englishSupplemental Explanatory Materials for Earnings Results: Available

Earnings Results Briefing: November 10, 2023 (for institutional investors and analysts)

1. FY24/3 H1 Consolidated Financial Results (April 1, 2023 to September 30, 2023)

(1) Consolidated Financial Results

Sales

EBITDA

Operating Profit

Recurring Profit

Net Income

(JPY M) YoY

(JPY M) YoY

(JPY M) YoY

(JPY M) YoY

(JPY M) YoY

FY24/3 H1

119,882

-13.3%

-18,096

-

-21,441

-

-19,113

-

-28,707

-

FY23/3 H1

138,296

+0.3%

-7,485

-

-11,779

-

-8,401

-

-11,633

-

EBITDA =

Operating Profit +

Depreciation +

Goodwill amortization

(Reference) Comprehensive Income FY24/3 H1: JPY -26,974M FY23/3 H1: JPY -7,761M

EPS

EPS

(Basic, JPY)

(Diluted, JPY)

FY24/3 H1

-4.64

-

FY23/3 H1

-2.47

-

(2) Consolidated Financial Position

Total Assets

Net Assets

Shareholders'

(JPY M)

(JPY M)

Equity Ratio

FY24/3 H1

232,252

97,456

41.9%

FY23/3

222,696

124,431

55.8%

(Reference) Shareholders' Equity FY24/3 H1: JPY 97,216M FY23/3: JPY 124,190M

(3) Consolidated Cash Flows

Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash

Equivalents

Operations

Investments

Financing

at Period-End

(JPY M)

(JPY M)

(JPY M)

(JPY M)

FY24/3 H1

-8,296

-9,684

19,600

29,120

FY23/3 H1

-14,209

-6,327

12,770

47,232

1

2. Dividends

Dividend per Share (JPY)

Q1

Q2

Q3

Q4

Total

FY23/3

-

0.00

-

0.00

0.00

FY24/3

-

0.00

FY24/3 (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. FY24/3 Full-Year (April 1, 2023 to March 31, 2024) Consolidated Earnings Forecast

Sales

EBITDA

Operating

Recurring

Net

EPS

Profit

Profit

Income

(JPY M)

(JPY M)

(JPY M)

(JPY M)

(JPY M)

（JPY）

FY24/3 Full Year

247,000

-27,500

-34,000

-32,500

-44,000

-7.11

YoY

-8.8%

-

-

-

-

-

Note Changes

from the most recently announced earnings forecast: Yes

JDI is revising up its FY24/3 full-year sales forecast by 2.9% to reflect the effects of the weak yen. JDI is adjusting its FY24/3 full-year FX assumption from JPY/USD 130 to 140.

JDI is also revising up its FY24/3 full-year forecasts for EBITDA +19.1%, operating profit +15.8%, recurring profit +24.8%, and net income +7.9% on the effects of the weak yen, improved panel yields and fab productivity, fixed cost reductions from ending production at the older, less cost competitive Higashiura Fab, and a breakthrough to structural profitability in JDI's OLED business, a strategic growth area..

4. Other Information

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
    • Newly included: None
    • Excluded: None
  3. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
  4. Changes in accounting policies, changes in accounting estimates, and restatements
  1. Accounting policy changes based on amendments to accounting standards: None

(ii)

Accounting policy changes other than (i) above:

None

(iii)

Accounting estimate changes:

None

(iv)

Restatements:

None

2

  1. Number of shares outstanding
    1. Number of shares outstanding (including treasury shares) at period-end FY24/3 H1: 3,880,393,562
      FY23/3: 3,880,393,562
    2. Number of treasury shares at period-end

FY24/3 H1: 67

FY23/3: 67

  1. Average number of shares outstanding (excluding treasury shares) during the period FY24/3 H1: 6,188,721,284
    FY23/3 H1: 4,715,379,062

Note All preferred shares outstanding during the periods have the same rights as common shares with regard to rights to receive dividends, and are therefore included in the number of shares outstanding at period-ends and the average number of shares outstanding during periods.

(5) Dividends for Preferred Shares

Class E Preferred Shares

Dividend per Share (JPY)

Q1

Q2

Q3

Q4

Total

FY23/3

-

0.00

-

0.00

0.00

FY24/3

-

0.00

FY24/3 (Forecast)

-

0.00

0.00

(6) Note on Appropriate Use of Forecast

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.

3

6. Consolidated Financial Statements

Consolidated Balance Sheet (FY24/3 H1)

(JPY million)

FY23/3

FY24/3 H1

(Mar 31, 2023)

(Sep 30, 2023)

Assets

Current Assets

Cash and deposits

26,220

29,665

Accounts receivable - trade

40,900

32,682

Accounts receivable - other

18,323

22,241

Finished products and goods

18,635

19,516

Work in process

11,802

11,289

Raw materials and supplies

29,881

32,458

Other

5,339

7,030

Allowance for doubtful accounts

-249

-152

Total Current Assets

150,853

154,732

Non-Current Assets

Property, Plant, and Equipment

Buildings and structures, net

39,640

37,778

Machinery, equipment, and vehicles, net

3,692

3,389

Land

6,552

6,509

Lease assets, net

843

840

Construction in progress

5,293

19,221

Other, net

1,349

1,478

Total Property, Plant, and Equipment

57,371

69,218

Intangible assets

Goodwill

275

－

Other

841

1,531

Total Intangible Assets

1,117

1,531

Investments and Other Assets

Other

13,356

6,773

Allowance for doubtful accounts

-1

-3

Total Investments and Other Assets

13,354

6,770

Total Non-Current Assets

71,843

77,519

Total Assets

222,696

232,252

4

(JPY million)

FY23/3

FY24/3 H1

(Mar 31, 2023)

(Sep 30, 2023)

Liabilities

Current Liabilities

Accounts payable - trade

44,616

51,384

Electronically recorded obligations - operating

606

844

Short-term loans payable

－

20,000

Income taxes payable

60

49

Provision for bonuses

2,703

2,704

Advances received

3,188

3,309

Provision for business restructuring

1,977

1,692

Provision for contract losses

4,277

7,377

Other

25,731

33,058

Total Current Liabilities

83,162

120,421

Non-Current Liabilities

Provision for business restructuring

725

753

Net defined benefit pension liability

8,213

8,253

Other

6,164

5,366

Total Non-Current Liabilities

15,102

14,373

Total Liabilities

98,265

134,795

Net Assets

Shareholders' Equity

Capital

100

100

Capital reserve

141,205

141,205

Retained earnings

-22,129

-50,837

Treasury shares

-0

-0

Total Shareholders' Equity

119,175

90,468

Accumulated Other Comprehensive Income

Valuation difference on other securities

0

1

Foreign currency translation adjustment

3,901

6,031

Adjusted value of defined benefit pension

1,112

715

Total Accumulated Other Comprehensive

5,014

6,747

Income

Share Acquisition Rights

240

240

Total Net Assets

124,431

97,456

Total Liabilities & Net Assets

222,696

232,252

5

Consolidated Income Statement (FY24/3 H1)

(JPY million)

FY23/3 H1

FY24/3 H1

(Apr 1, 2022 to

(Apr 1, 2023 to

Sep 30, 2022)

Sep 30, 2023)

Sales

138,296

119,882

Cost of Goods Sold

135,482

127,919

Gross Profit (Loss)

2,813

-8,037

SG&A

14,593

13,404

Operating Profit (Loss)

-11,779

-21,441

Non-Operating Income

Interest income

37

50

Foreign exchange gains

4,138

1,784

Rental income

283

249

Business services income

232

1,756

Other

302

584

Total Non-Operating Income

4,995

4,424

Non-Operating Expenses

Interest expense

590

261

Property maintenance expenses

－

1,307

Other

1,027

528

Total Non-Operating Expenses

1,618

2,097

Recurring Profit (Loss)

-8,401

-19,113

Extraordinary Income

Gain on sale of non-current assets

5

89

Reversal of business restructuring expenses

1,041

－

Total Extraordinary Income

1,046

89

Extraordinary Losses

Impairment loss

1,206

9,185

Total Extraordinary Losses

1,206

9,185

Pre-Tax Income (Loss)

-8,561

-28,209

Income Taxes

3,072

497

Pre-Minority Interest Net Income (Loss)

-11,633

-28,707

Net Income (Loss)

-11,633

-28,707

6

Consolidated Statement of Income (FY24/3 Q2 Stand-Alone)

(JPY million)

FY23/3 Q2

FY24/3 Q2

(Jul 1, 2022 to

(Jul 1, 2023 to

Sep 30, 2022)

Sep 30, 2023)

Sales

81,196

66,886

Cost of Goods Sold

78,509

67,569

Gross Profit (Loss)

2,687

-683

SG&A

7,594

6,874

Operating Profit (Loss)

-4,906

-7,558

Non-Operating Income

Interest income

26

27

Foreign exchange gains

1,364

514

Rental income

144

124

Income from provision of business services

120

879

Other

183

131

Total Non-Operating Income

1,840

1,677

Non-Operating Expenses

Interest expenses

297

227

Property maintenance expenses

－

611

Other

713

314

Total Non-Operating Expenses

1,010

1,152

Recurring Profit (Loss)

-4,077

-7,033

Extraordinary Income

Gain on sale of non-current assets

－

85

Total Extraordinary Income

－

85

Extraordinary Losses

Impairment loss

86

9,175

Total Extraordinary Losses

86

9,175

Pre-Tax Income (Loss)

-4,164

-16,124

Income Taxes

2,395

335

Pre-Minority Interest Net Income (Loss)

-6,559

-16,459

Net Income (Loss)

-6,559

-16,459

7

Consolidated Statement of Comprehensive Income (FY24/3 H1)

(JPY million)

FY23/3 H1

FY24/3 H1

(Apr 1, 2022 to

(Apr 1, 2023 to

Sep 30, 2022)

Sep 30, 2023)

Net Income (Loss)

-11,633

-28,707

Other Comprehensive Income

Valuation difference on other securities

0

0

Foreign currency translation adjustment

3,760

2,129

Adjusted value of defined benefit pension, net of tax

112

-397

Total Other Comprehensive Income

3,872

1,732

Comprehensive Income

-7,761

-26,974

of which, Comprehensive income attributable to owners of

-7,761

-26,974

the parent

Consolidated Statement of Comprehensive Income (FY24/3 Q2 Stand-Alone)

(JPY million)

FY23/3 Q2

FY24/3 Q2

(Jul 1, 2022 to

(Jul 1, 2023 to

Sep 30, 2022)

Sep 30, 2023)

Net Income (Loss)

-6,559

-16,459

Other Comprehensive Income

Valuation difference on available-for-sale securities

-0

-0

Foreign currency translation adjustment

476

403

Adjusted value of defined benefit pension, net of tax

55

45

Total Other Comprehensive Income

532

449

Comprehensive Income

-6,027

-16,010

of which, Comprehensive income attributable to owners of

-6,027

-16,010

the parent

8

Consolidated Cash Flow Statement (FY24/3 H1)

(JPY million)

FY23/3 H1

FY24/3 H1

(Apr 1, 2022 to

(Apr 1, 2023 to

Sep 30, 2022)

Sep 30, 2023)

Cash Flows from Operations

Pre-Tax Income (loss)

-8,561

-28,209

Depreciation

4,254

3,315

Goodwill amortization

68

68

Impairment loss

1,206

9,185

Increase (decrease) in allowance for doubtful accounts

-1

-112

Interest expense

590

261

Foreign exchange losses (gains)

-1,486

-855

Loss (gain) on sale of non-current assets

-5

-89

Reversal of business restructuring expenses

-1,041

－

Decrease (increase) in trade receivables

12,360

11,647

Decrease (increase) in inventories

-19,868

-1,513

Increase (decrease) in trade payables

1,555

3,095

Decrease (increase) in accounts receivable - other

-2,554

-3,762

Decrease (increase) in consumption tax refunds

-356

-1,463

receivable

Increase (decrease) in accounts payable - other

-432

472

Increase (decrease) in accrued expenses

71

-597

Increase (decrease) in advances received

343

75

Increase (decrease) in retirement benefit liability

-434

-357

Other

2,331

1,320

Subtotal

-11,959

-7,517

Interest and dividends received

37

53

Interest paid

-585

-180

Income taxes paid

-1,702

-652

Net Cash from (Used for) Operations

-14,209

-8,296

9

(JPY million)

FY23/3 H1

FY24/3 H1

(Apr 1, 2022 to

(Apr 1, 2023 to

Sep 30, 2022)

Sep 30, 2023)

Cash Flows from Investments

Purchase of non-current assets

-5,782

-8,615

Proceeds from sale of non-current assets

6

199

Decrease (increase) in time deposit

850

-79

Payments for business acquisition

－

-1,000

Payments of leasehold and guarantee deposits

-1,443

-52

Other

41

-136

Net Cash from (Used for) Investments

-6,327

-9,684

Cash Flows from Financing

Net increase (decrease) in short-term borrowings

13,000

20,000

Repayments of lease obligations

-229

-373

Other

－

-26

Net Cash from (Used for) Financing

12,770

19,600

Effect of Exchange Rate change on Cash & Cash

4,059

1,746

Equivalents

Net Increase (Decrease) in Cash & Cash Equivalents

-3,706

3,366

Cash & Cash Equivalents at Beginning of Period

50,939

25,754

Cash & Cash Equivalents at End of Period

47,232

29,120

10

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Japan Display Inc. published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 14:44:22 UTC.