Japan Display Inc. · TSE:6740
Japan Display — Q3 FY2014 Earnings Presentation
15 slides from Japan Display's earnings presentation, Feb 12, 2015
Slide 1: Third Quarter of FY 2014 Consolidated Financial Results
Japan Display Inc. Third Quarter of FY 2014 Consolidated Financial Results February 12, 2015
Slide 2: 3Q-FY2014 Financial Results; Outlook & Recent Topic
1. 3Q-FY2014 Financial Results 2. Outlook & Recent Topic Copyright © 2015 Japan Display Inc. All Rights Reserved. 2
Slide 3: FY 2014 3Q Financial Results Summary
FY 2014 3Q Financial Results Summary Large demand from a major customer & weaker yen enabled 3Q sales and op. income to finish above our expectations as of the announcement of 2Q results. The weak yen brought major improvement in 3Q net income. Improved operating cash flow resulted in positive
Slide 4: 3Q-FY 2014 Financial Results
3Q-FY 2014 Financial Results (Billion yen) 3Q-FY14 3Q-FY13 YoY Chg. 2Q-FY14 QoQ Chg. Net sales 251.1 161.8 +55.2% 160.4 +56.6% Cost of sales 224.4 142.4 155.6 Gross profit 26.7 19.4 +37.7% 4.8 +455.0% 10.6% 12.0% 3.0% SG&A 12.0 11.2 12.4 Operating income 14.7 8.2 +79.5% (7.6) - 5.9% 5.1% -4.7% Non-o
Slide 5: Quarterly Results of Operations
Quarterly Results of Operations Quarterly Results (Billion yen) Mobile Auto, C&I, Others 251.1 175.6 161.8 160.4 145.4 131.8 Net sales 125.2 211.8 136.7 126.7 120.2 113.6 99.6 90.3 31.7 38.9 35.1 32.2 34.8 40.2 39.3 4.3% 4.3% 5.1% 4.2% 5.9% -4.7% Operating -10.1% income 6.3 7.6 8.2 14.7 5.5 (12.7) (
Slide 6: 3Q-FY2014 Operating Income Analysis (YoY)
3Q-FY2014 Operating Income Analysis (YoY) Operating Income Analysis (YoY) (Billion yen) Shipment Price increase decline Increase in fixed costs +12.5 (17.4) and others FX (1.7) +3.9 Cost improve- ments 14.7 +9.2 8.2 3Q13 3Q14 Note: JDI’s ASP rose YoY mainly due to higher shipments of larger size dis
Slide 7: 3Q-FY2014 Balance Sheet
3Q-FY2014 Balance Sheet Returned to net cash; big improvement in days in inventory (Billion yen) 12/2014 9/2014 3/2014 Cash and deposits 89.1 71.2 141.4 Accounts receivable 159.6 124.9 97.1 Other receivables 78.6 48.3 23.4 Inventories 109.7 103.0 90.6 Total current assets 463.4 376.9 378.5 Property,
Slide 8: 3Q-FY 2014 Cash Flow
3Q-FY 2014 Cash Flow Free cash flow was positive for the first time in 3Q (Billion yen) 1Q-3Q 3Q-FY14 2Q-FY14 1Q-FY14 FY14 Income before income taxes (5.2) 19.4 (7.7) (16.9) Depreciation and amortization 52.0 17.4 17.5 17.1 (1) Working capital (2.4) 14.6 (6.5) (10.6) Decrease in advance receipts (14
Slide 9: Outlook & Recent Topic
1. 3Q-FY2014 Financial Results 2. Outlook & Recent Topic Copyright © 2015 Japan Display Inc. All Rights Reserved. 9
Slide 10: Quarterly Sales by Product Category and Sales Region
Quarterly Sales by Product Category and Sales Region (Billion yen) Sales by Product Category and Mobile-related Regional Sales 250 200 US-Euro 150 Mobile Category 100 China 50 Other area Auto, C&I, Other Category 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14(F) (FY) Copyright © 2015 Japan Display Inc. A
Slide 11: Smartphone Display Sales to China/Asian by Resolution
Smartphone Display Sales to China/Asian by Resolution Smartphone Display Sales by Resolution (Billion yen) (China and Asian Customers) 100 100% 80 80% >=WQHD FHD 60 60% 欧米 HD720 40 40% <HD720 PE ratio 20 20% 0 0% 1Q14 2Q14 3Q14 4Q14(F) (FY) 3Q: Short of expectations due to customer product develop
Slide 12: FY 2014 Earnings Forecast and 4Q guidance
FY 2014 Earnings Forecast and 4Q guidance 9 mo ended FY2014 Advance- Dec 31, 2014 Forecast (B-A) ment (A) (B) Net sales 536.7 740.0 203.3 72.5% Operating income ▲ 5.6 6.5 12.1 - Ordinary income ▲ 4.2 1.5 5.7 - Net income ▲ 8.6 ▲ 12.1 ▲3.5 (1) - EBITDA 46.2 77.1 30.9 59.9% Annual Dividend 0 yen (1) 4
Slide 13: Sales Expectation by Resolution and Customer Region
Sales Expectation by Resolution and Customer Region 3Q14 Sales (A) 4Q14 Sales 1Q15 Sales vs. Nov.13 QoQ FCST QoQ FCST expectation QoQ WQHD China/Asia Global Full-HD smartphone manufacturers Largest customer HD720 China/Asia Pixel Eyes™ Copyright © 2015 Japan Display Inc. All Rights Reserved. 13
Slide 14: Recent Topic: Automotive Display Module Assembly Capacity Enlarged
Recent Topic: Automotive Display Module Assembly Capacity Enlarged CY14 automotive display market share Given expected automotive display demand, Kaohsiung Opto- Electronics Inc. (KOE, a Taiwan subsidiary) will expand module No.1 assembly capacity for automobile displays (announced Jan. 22) Share!
Slide 15: 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