JDI has resolved at the board of directors meeting held on June 12, 2019 to downsize the mobile business, which has no prospect for a significant recovery in demand in the future, together with suspending operations at the Hakusan Plant (Ishikawa-site, Hakusan-shi, Ishikawa Prefecture) and the closure of the back-end production line in the Mobara Plant (V2 line, Mobara-shi, Chiba Prefecture). Also, JDI has resolved to reduce the number of employees. In JDI's mobile business, which handles displays for smartphones and tablets and is company's main business, the business environment surrounding company is becoming increasingly challenging due to intensifying price competition resulting from a rapid catch-up of technologies and the expansion of production capacity by Chinese competing display manufacturers as well as trade friction between the U.S. and China. In addition, demand for LCDs remains sluggish due to factors such as the growing adoption of OLED displays by smartphone manufacturers, who are company's customers, the slowdown in the Chinese economy, and the slump in the smartphone market, which is partly due to the prolongation of the life cycle of smartphones. This has caused JDI's sluggish business performance. Given these circumstances, JDI has decided that while continuing to strengthen automotive and non- mobile business, JDI will downsize its mobile business by integrating production and downscaling production equipment and manufacturing line in order to improve profitability. The Hakusan Plant, one of the production sites that produce displays for smartphones, will suspend its production. In addition, the closure of the back-end production line at the Mobara Plant and sale or disposal of production equipment will be carried out to shrink back-end production for the mobile business. With regard to the Hakusan Plant, JDI will decide whether or not to re-start production based on customer demand going forward by the end of September 2019.

In response to the slump in business performance resulting in the structural reforms, Yoshiyuki Tsukizaki, Representative Director, President and Chief Executive Officer, will resign from the positions of President and CEO as of September 30, 2019, the scheduled date for completion of the voluntary retirement. Also, a substantial renovation in its executive officer structure will be carried out. Under the new executive structure to be established as of October 1, 2019, Takahisa Hashimoto, outside director, will be appointed as Director and Chairman, and Minoru Kikuoka, Chief Financial Officer, will be appointed as President and CEO to promote prompt operational reforms centering on Hashimoto and Kikuoka. As part of this effort, divisions will be eliminated and consolidated, the organization will be flattened, and the number of managerial positions will be halved to ensure speedy decision-making. The new executive officer structure, including Hashimoto and Kikuoka, will be announced as soon as it is decided.