Japan Display : Presentation slides for Fiscal Year 2019 Consolidated Financial Results

1. 2Q-FY2014 Financial Results & FY2014 Forecast

2. Measures for Improving Earnings

Summary of 2Q-FY 2014 Financial Results Meeting

•  Downward revision of the financial forecast for FY2014 was made on Oct 15 1H: Net sales: ¥310.0 bn  ¥285.6 bn

  OP: ¥1.0 bn  a loss of ¥20.3 bn Full term: Net sales: ¥750.0 bn  ¥740.0bn

  OP: ¥40.0 bn  ¥6.5 bn

•  2Q financial results fell below initial forecasts due mainly to product shipment delays, lower-than-expected Full-HD sales and a recorded inventory write-down

•  Net sales and operating profit to improve in the 2H due to recovery in production for a large customer, higher sales of Full-HD/WQHD and Pixel EyesTM to China and other Asian customers and cost-cutting measures

•  Extraordinary loss of 2.1 bn yen for provision for doubtful accounts established in 2Q

1H-FY 2014 Consolidated Operating Results

(Billion yen)
1H-FY14	1H-FY14	Increase/	1H-FY14	Increase/
Actual	Est. May 15	Decrease	Est. Oct 15	Decrease
Net sales	285.6	310.0	(24.4)	286.3	(0.7)
Operating income	(20.3)	1.0	(21.3)	(20.9)	0.6
-7.1%	0.3%	-7.3%
Ordinary income	(22.5)	(3.2)	(19.3)	(22.5)	0.0
-7.9%	-1.0%	-7.9%
Net income	(27.8)	(3.2)	(24.6)	(25.3)	(2.5)
-9.7%	-1.0%	-8.8%
EBITDA	14.2	38.3	(24.1)	-	-
5.0%	12.4%

• • 1H and full-term forecast announced May 15 revised on October 15 due to product shipment delays in the 2Q, lower shipments of Full-HD (HD720 shipments increased) and an inventory write-down

• • Actual results for 1H were almost the same as the estimate announced on Oct.15 except for net income because of extraordinary loss booked for accounts receivables of our overseas subsidiaries

Extraordinary Loss Taken on Accounts Receivable

•  An extraordinary loss of 2.13 bn yen was recorded in 2Q for 4.26 bn yen accounts receivable from Taiwan's Wintek Corporation, a customer of JDI's subsidiaries that has filed for corporate reorganization proceedings

•  Corporate reorganization proceeding in Taiwan may become a prolonged process. Since it is unclear how much Wintek can pay off receivables under a corporate reorganization plan, the remaining amount of accounts receivable will be addressed later

•  The distribution of products to a smartphone maker, one of our display users, was changed prior to the filing for corporate reorganization proceedings. Outstanding receivables from Wintek will not increase in future

•  For the purpose of collecting accounts receivable, negotiations with Wintek and JDI display users continue. JDI will strengthen its credit management of customers designated by our display users