Japan Display Inc. · TSE:6740
Japan Display — Q1 FY2024 Earnings Presentation
31 slides from Japan Display's earnings presentation, Aug 9, 2023
Slide 1: FY24/3 Q1 Corporate Presentation
FY24/3 Q1 Corporate Presentation August 9, 2023
Slide 2: PersonalTech For A Better World
PersonalTech For A Better World Copyright 2023 Japan Display Inc. All Rights Reserved. Slide 2
Slide 3: FY24/3 Q1 Earnings Review
|_| Japan Display Inc. _ JDI FY24/3 Q1 Earnings Review
Slide 4: FY24/3 Q1 Earnings Overview
FY24/3 Q1 Earnings Overview (JPY billion) JPY 53.0B • Core businesses (Automotive and Non-Mobile) up 9% Sales • YoY -7%（Core +9％, Non-Core -49％） • Non-core business (Mobile) down on strategic • vs. Plan ＋7％ downsizing & exit • YoY (+) factors: Fixed cost reductions including Operating JPY -13.9B pro
Slide 5: Sales by Product Area
Sales by Product Area Continued Strategic Downsizing of Non-Core (Mobile) Business & Strong Performance of Core Businesses (Automotive & Non-Mobile) Sales by Product Area Automotive (JPY billion） Non-Mobile Mobile (US/Euro) ◼ Automotive（Core: YoY +8.3％） Mobile (China) 57.1 Sales growth exceeded the
Slide 6: Operating Profit Breakdown (YoY)
Operating Profit Breakdown (YoY) Operating Profit Breakdown（YoY） （JPY billion） FY23/3 Q1 FY24/3 Q1 ◼ YoY expansion of operating Sales: 57.1 Sales: 53.0 loss mainly due to non-cash inventory accounting effects ◼ Operating profit improved YoY excluding above accounting Inventory Accounting effects Eff
Slide 7: Operating Profit Breakdown (QoQ)
Operating Profit Breakdown (QoQ) Operating Profit Breakdown（QoQ） （JPY billion） FY23/3 Q4 FY24/3 Q1 Sales: 62.7 Sales: 53.0 ◼ Operating profit significantly improved QoQ Inventory ◼ Business mix improvement Accounting Effect from exiting unprofitable non- core businesses & production USD/JPY end at H
Slide 8: FY24/3 Forecast
|_| Japan Display Inc. _ JDI FY24/3 Forecast
Slide 9: FY24/3 Forecast (from FY23/3 full-year presentation)
FY24/3 Forecast (from FY23/3 full-year presentation) Business Environment Remains Difficult on Continued High Material & Energy Costs & Slowdown of Global Economy. Short-Term Sales Decline from Withdrawal from Unprofitable Businesses Will Contribute to Structural Improvement in Profitability from FY
Slide 10: FY24/3 H1 → H2 Operating Profit Breakdown
(from FY23/3 full- FY24/3 H1 → FY24/3 H2 Operating Profit Breakdown year presentation) Product Mix Improvements & Contributions from New Technologies such as eLEAP & HMO to Drive Higher Earnings from FY24/3 H2 FY24/3 H1 FY24/3 H2 (JPY billion) • eLEAP/HMO royalties • Automotive mix improvement USD/J
Slide 11: FY24/3 Q1 Business & Strategy Update
FY24/3 Q1 Business & Strategy Update
Slide 12: FY24/3 Q1 Business Overview
FY24/3 Q1 Business Overview ◼ Operating Loss in Difficult Market Environment – Rising Material & Energy Costs, Global Inflation, Rising Interest Rates, & Global Economic Slowdown ◼ Outperforming Plan in 3 Key Areas – Earnings, NextGen Tech Development, Customer Product Roadmaps ◼ Signed Strategic Al
Slide 13: FY24/3 Q1 Business Overview
FY24/3 Q1 Business Overview ◼ Production End at Older G4 Tottori Fab to Reduce Fixed Costs & Drive Higher Earnings – Announcement: Aug 2, 2023, Production End Date: March 2025 ◼ Continued Focus on Sustainability & Newly Announced Support for TCFD ◼ Execution to Deliver Structural Profitability from
Slide 14: Outperforming Plan in 3 Key Areas
Outperforming Plan in 3 Key Areas 1 Earnings 2 NextGen Tech Development JDI NextGen Proprietary 3 Customer Product Roadmaps Extraordinary Customer Interest & Progress in Tech Development & Mass Cost Discipline Driving Integrating eLEAP, HMO, & Production Launch Outperformance Other JDI NextGen Tech
Slide 15: METAGROWTH in Value Creation
METAGROWTH 2026 Global No. 1 Technology Leadership to Best Serve Customers and Deliver PersonalTech For A Better World METAGROWTH in Value Creation Copyright 2023 Japan Display Inc. All Rights Reserved. Slide 15
Slide 16: METAGROWTH 2026 Core Strategy
METAGROWTH 2026 Core Strategy Displays are a foundational technology for modern society JDI has unmatched technological capabilities to deliver customer and social value and improve people’s lives 1 2 3 Market-Leading Global No. 1 Technology, GreenTech & Technology Transformational Sustainability Le
Slide 17: FY24/3 Strategic Initiatives
FY24/3 Strategic Initiatives Build a New Global Display Ecosystem based on JDI’s Global No.1 1 Technology Set ▪ Create unprecedented customer value through eLEAP and other NextGen tech ▪ Cement JDI’s unique competitive advantages ▪ Transform business model & drastically improve profitability Dramati
Slide 18: FY24/3 Strategic Initiatives
FY24/3 Strategic Initiatives Technology Revolution: Developing & Commercializing JDI 3 Global No.1 Technology Set ▪ NextGen OLED eLEAP ▪ High performance, ultra-low power consumption, low-cost backplane technology HMO ▪ Smart Lighting LumiFree ▪ Other new technologies, products, & businesses under d
Slide 19: FY24/3 Strategic Initiatives: HKC Alliance
FY24/3 Strategic Initiatives Strategic Alliance with Global No. 3 Display Maker HKC (2023/4) 5 ▪ Generate overwhelming competitiveness & customer value by combining JDI’s proprietary technologies with HKC’s cost competitiveness & sales capabilities ▪ Cement JDI’s technology leadership in global disp
Slide 20: China + India JDI Fab Strategy
CHINA + INDIA JDI Fab Strategy Local Production & Presence in Massive & Growing Markets CHINA INDIA ▪ Inbound inquiries from multiple Indian ▪ Finalize strategic alliance with global conglomerates for technical support & No.3 display maker HKC by Sept 2023 joint business development in India ▪ Agree
Slide 21: Accelerate METAGROWTH 2026 via JOLED Talent
Accelerate METAGROWTH 2026 via JOLED Talent ▪ Acquisition of World-Class JOLED OLED Engineering Talent to Support and Broaden eLEAP Rollout ▪ JOLED Talent and OLED IP and Know-How Will Significantly Accelerate METAGROWTH 2026 Growth Strategy JOLED Engineers Acquisition of JOLED Engineering Talent to
Slide 22: Dramatically Strengthen Competitiveness via Fab Optimization
Dramatically Strengthen Competitiveness via Fab Optimization Increase Core Profitability through Fixed Cost Reductions & Asset-Light Execution Japan ▪ Mobara Fab (G6, Chiba） → Smartphone Line Downsizing FY23 Q1 ▪ Ishikawa Fab (G4.5, Ishikawa) Hakusan Fab ▪ Tottori Fab (G4, Tottori) → Production End
Slide 23: JDI Sustainability – Support for TCFD
JDI Sustainability – Support for TCFD JDI recognizes the importance of identifying climate change risks and opportunities, generating robust responses, and disclosing those responses in order to support its sustainable growth. JDI has therefore decided to support TCFD. By incorporating climate chang
Slide 24: JDI Sustainability – Inclusion in FTSE Blossom Japan Index Series
JDI Sustainability – Inclusion in FTSE Blossom Japan Index Series 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 JDI‘s ongoing commitment to ESG concerns has been
Slide 25: Financial Targets (KPI) | METAGROWTH 2026
Financial Targets (KPI) | METAGROWTH 2026 Will Announce Updated KPIs in November after Final HKC Alliance Agreement in September. See KPI Upside on eLEAP & Other NextGen Tech 194.5 767.2 750 144.5 545.4 99.1 353.7 82.4 94.5 (JPY billion) 270.7 285.8 60.3 240.0 250 43.6 Sales 26.4 44.5 8.0 10.9 EBITD
Slide 26: Appendix
|_| Japan Display Inc. _ JDI Appendix
Slide 27: Quarterly Sales Breakdown by Product Category
Quarterly Sales Breakdown by Product Category （JPY billion） 86.4 81.2 71.9 71.7 69.7 66.0 35.7 62.7 57.1 39.7 23.9 26.4 53.0 20.9 33.1 Automotive (Core) 26.9 34.9 16.0 21.1 29.1 Non-Mobile (Core) 15.0 19.4 19.3 14.3 Mobile (US/Euro) (Non-Core) 22.0 14.5 12.4 21.4 14.2 18.6 15.8 Mobile (China) (Non-C
Slide 28: Consolidated B/S
Consolidated B/S (JPY billion) FY23/3 FY24/3 Q1 vs. FY23/3 Cash and deposits 26.2 22.4 -3.8 Accounts receivable - trade 40.9 36.8 -4.1 Accounts receivable - other 18.3 16.2 -2.1 Inventories 60.3 64.3 ＋4.0 Other 5.1 5.9 ＋0.8 Total current assets 150.9 145.7 -5.1 Total non-current assets 71.8 77.8 ＋6.
Slide 29: Consolidated P&L
Consolidated P&L (JPY billion) FY23/3 Q1 FY23/3 Q4 FY24/3 Q1 YoY QoQ Sales 57.1 62.7 53.0 -4.1 -9.7 EBITDA -4.7 -20.2 -12.2 -7.5 ＋8.0 Operating Profit -6.9 -22.0 -13.9 -7.0 ＋8.1 Non-Operating Income 3.2 1.6 2.7 -0.4 ＋1.1 Non-Operating Expenses -0.6 -1.6 -0.9 -0.3 ＋0.6 Recurring Profit -4.3 -21.9 -12
Slide 30: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (JPY billion) FY23/3 Q1 FY24/3 Q1 YoY Income before income taxes -4.4 -12.1 -7.7 Depreciation & amortization 2.2 1.7 -0.4 Working capital -0.3 3.2 3.5 Other -8.8 -2.5 6.3 Cash Flow from Operating Activities -11.4 -9.7 1.6 Fixed asset investments -2.7 -7.0 -4.3 Other
Slide 31: 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