Japan Display Inc. · TSE:6740
Japan Display — Q1 FY2023/3 Earnings Presentation
28 slides from Japan Display's earnings presentation, Aug 9, 2022
Slide 1: FY23/3 Q1 Corporate Presentation
FY23/3 Q1 Corporate Presentation August 9, 2022
Slide 2: PersonalTech For A Better World
PersonalTech For A Better World Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 2
Slide 3: FY23/3 Q1 Earnings Review
» 4 [| Japan Display Inc. : ~ JD—DI FY23/3 Q1 Earnings Review
Slide 4: FY23/3 Q1 Key Points
FY23/3 Q1 Key Points Q1 sales down 13.4% YoY given a continuing fall in US/Euro Mobile sales despite firm Automotive sales Operating loss widened by JPY 1B YoY due to lower sales but came in significantly better than forecast by JPY 5.6B because of cost reductions, inventory growth to cover incr
Slide 5: FY23/3 Q1 YoY Comparison
FY23/3 Q1 YoY Comparison Explanation (JPY billion) FY22/3 Q1 FY23/3 Q1 Mobile US/Euro: Continuing downward trend Change ACT ACT Mobile China/Other: Lower shipments due to customers’ inventory adjustments & lower Sales 66.0 57.1 -8.9 smartphone sales Mobile (US/Euro) 21.4 10.1 -11.3 Automotive: In ad
Slide 6: FY23/3 Q1 Difference between Forecast and Actual Results
FY23/3 Q1 Difference between Forecast and Actual Results Explanation (JPY billion) FY23/3 Q1 FY23/3 Q1 Diff Mobile US/Euro: Primarily yen depreciation FCST ACT Mobile China/Other: Decrease in shipments due to Sales 62.5 57.1 -5.4 customers' inventory adjustments and lower smartphone sales offset by
Slide 7: FY23/3 Q1 Operating Income Breakdown
FY23/3 Q1 Operating Income Breakdown Operating Income Breakdown（YoY） Operating Income Breakdown (QoQ） （JPY billion） （JPY billion） FY22/3 Q1 FY23/3 Q1 FY22/3 Q4 FY23/3 Q1 Sales: 66.0 Sales: 57.1 Sales: 86.4 Sales: 57.1 1.5 Operating -5.9 -6.9 Profit -6.9 FX impact FX impact Other Operating Other Manu
Slide 8: Business Environment
Business Environment Robust Automotive demand, weak Mobile & Non-Mobile demand. Key actions are to drive sales & reduce costs while closely monitoring inflation & geopolitical risks to swiftly react to changes in the operating environment Business Environment Countermeasures • Acquiring new business
Slide 9: Business Outlook
Business Outlook Yen depreciation a clear positive, but given uncertain business environment, high inflation, & weaker mobile & non-mobile demand, JDI not adjusting full-year FY23/3 forecast today JDI is executing on the necessary investments, technology development, & commercial discussions to real
Slide 10: Operating Environment
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Slide 11: FY23/3 Q1 Summary
FY23/3 Q1 Summary Due to supply chain disruptions caused by the Shanghai lockdown and the situation in Ukraine, orders and production declined beyond forecast in the automotive sector in Q1. However, negative effects of the Shanghai lockdown were largely resolved in Q1 Developed & announced a series
Slide 12: METAGROWTH 2026 Six Proprietary Growth Drivers – Progress Update
METAGROWTH 2026 Six Proprietary Growth Drivers – Progress Update eLEAP HMO Metaverse (NextGen OLED) （High Mobility Oxide） (Ultra High Resolution) • Sample shipments starting • Ongoing commercialization this month • Open strategy to license & discussion with multiple • Launched commercial commerciali
Slide 13: METAGROWTH 2026 Six Proprietary Growth Drivers – Progress Update
METAGROWTH 2026 Six Proprietary Growth Drivers – Progress Update Rælclear New Tech, Products, & AutoTech (Transparent Displays) Businesses • Despite the impact of • Developed a 20.8-inch component shortages, model that dramatically demand is strong due to low • Commencement of sales of increases vis
Slide 14: eLEAP (NextGen OLED) Sample Shipment Start
eLEAP (NextGen OLED) | Sample Shipment Start Starting eLEAP sample shipments to customers this month PDL: 19.5um PDL: 9.2um (Aperture ratio:28%) (Aperture ratio:58%) Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 14
Slide 15: HMO | Rapid Commercialization
HMO | Rapid Commercialization Open innovation strategy accelerating commercialization In discussions with Joint press release with multiple customers Idemitsu Kosan, on alliances cooperating in technological development World’s First HMO Current June 2022 Mar 2022 Copyright 2022 Japan Display Inc.
Slide 16: Metaverse (Ultra High Resolution) | Resolution Revolution & HMO Prototyping
Metaverse (Ultra High Resolution) | Resolution Revolution & HMO Prototyping 2500ppi panels in development – leading ultra-high res market VR@2016 VR@2018 VR@2021 VR@2025 In Development 651ppi 803ppi 1201ppi 2000ppi 2500ppi Prototyping HMO VR displays to drive higher refresh rates Higher drive freq
Slide 17: Rælclear (Transparent Displays) | 20.8-inch Model Development & Promotion
Rælclear (Transparent Displays) | 20.8-inch Model Development & Promotion 12.3-inch Model 20.8-inch Model Completed development of 20.8-inch model & JDI collected feedback about Rælclear at initiation of customer presentations organizations for the deaf and hard-of-hearing, which were very well
Slide 18: METAGROWTH 2026 Financial Targets (KPIs)
METAGROWTH 2026 Financial Targets (KPIs) JDI is executing on the necessary investments, technology development, & commercial discussions to realize METAGROWTH 2026 6,000 2400 2200 5,000 473.5 2000 418.2 1800 4,000 384.5 1600 329.1 335.5 1400 3,000 104.4 1200 Unit：BJPY 83.3 1000 2,000 67.4 Sales 800
Slide 19: Sustainability Commitment
Sustainability Commitment JDI is working to become a more environmentally friendly and sustainable company. JDI always considers its fabs’ impact on the environment and is reducing resource usage and emissions with quantifiable targets. JDI's ongoing commitment to ESG concerns has been recognized wi
Slide 20: Environmental Initiatives – Solar Power Production
Environmental Initiatives – Solar Power Production Solar Equipment Solar Power Generation at （In Blue） China Manufacturing Subsidiary Following JDI’s Tottori Fab (Japan), Suzhou JDI Electronics Inc. (SE), JDI's manufacturing subsidiary in China, has also begun roof-top solar power generation The
Slide 21: Driving Design & Development Efficiencies via Cloud Migration
Driving Design & Development Efficiencies via Cloud Migration JDI is pioneering the display industry's adoption of the cloud in its design activities JDI has begun operating a VDI (Virtual Desktop Infrastructure) for CAD/CAE＊1 on an environmentally positive cloud computing platform Home Office (new
Slide 22: Appendix
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Slide 23: Quarterly Sales Breakdown by Product
Quarterly Sales Breakdown by Product （JPY billion） 86.4 71.9 71.7 18.6 66.0 14.2 11.0 57.1 22.0 21.4 11.7 10.1 10.0 5.7 系列4 系列3 8.7 35.7 26.4 20.9 23.9 26.9 系列2 系列1 16.0 19.4 21.1 15.0 14.5 1 2 3 4 5 Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 23
Slide 24: Consolidated B/S
Consolidated B/S (JPY billion) FY22/3 FY22/3 FY23/3 YoY QoQ Q1 Q4 Q1 Cash and deposits 44.7 52.2 39.8 -4.9 -12.4 Accounts receivable - trade 32.8 56.3 43.1 ＋10.4 -13.2 Accounts receivable - other 18.8 23.5 16.6 -2.2 -6.9 Inventories 43.6 49.1 58.8 ＋15.2 ＋9.7 Other 4.7 5.4 6.3 ＋1.6 ＋0.9 Total current
Slide 25: Consolidated P&L
Consolidated P&L (JPY billion) FY22/3 FY22/3 FY22/3 YoY QoQ Q1 Q4 Q1 Sales 66.0 86.4 57.1 -8.9 -29.3 EBITDA -3.7 3.9 -4.7 -1.0 -8.6 Operating Profit -5.9 1.5 -6.9 -1.0 -8.4 Net non-op. income/expenses -0.5 0.6 2.5 ＋3.0 ＋2.0 Recurring Profit -6.4 2.1 -4.3 ＋2.0 -6.4 Net extraordinary income/losses -0.
Slide 26: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (JPY billion) FY22/3 FY22/3 FY23/3 YoY QoQ Q1 Q4 Q1 Income before income taxes -6.7 -0.6 -4.4 ＋2.3 -3.8 Depreciation & Amortization 2.2 2.3 2.2 ＋0.0 -0.1 Working capital -4.4 -14.9 -0.3 ＋4.1 ＋14.6 Advances received 3.0 -2.1 -0.6 -3.6 ＋1.5 Other -2.8 -0.1 -8.2 -5.4 -8
Slide 27: FY23/3 Earnings Forecast (Announced on May 13, 2022)
FY23/3 Earnings Forecast (Announced on May 13, 2022) Copyright 2022 Japan Display Inc. All Rights Reserved. Slide 27
Slide 28: 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