Background to the Need for the Transaction

Rapid changes in business conditions

  • • Intensified price competition for smartphone displays caused by emergence of Chinese display manufacturers

  • • Slowing smartphone sales growth (slowdown in China's economy, longer replacement cycle, etc.)

  • • JDI lagging behind competitors in OLED commercialization while smartphone market rapidly shifting from LCD to OLED

    Rapid deterioration of financial condition

  • • Reduced net assets due to expected loss in FY3/19

  • • Cash position may fall below the minimum required level for maintaining JDI's business value

To achieve medium-to long-term growth, JDI will launch a new start based on the capital & business alliance with the Suwa Consortium and continuing support from INCJ, along with upcoming planned structural reforms

Overview of the Alliance and Capital Reinforcement

Capital & business alliance with Suwa Consortium

Continuing support by

INCJ

LCD business alliance with TPKOLED business alliance with Harvest

Strengthen and expand LCD biz of one another by utilizing & complementing

SCM, customer base & portfolio.

MOU reached with Harvest Tech to launch competitive OLED business leveraging JDI's technology.

Refinancing of existing debt with INCJ

Improve balance sheet by replacing the existing debt with INCJ with long-term & capital-like funds.

  • Secure financial stability thru large-scale capital injection & refinancing

  • Improve corporate value thru medium to long-term business growth

Outline of the Suwa Consortium

Taiwan's leading touch panel maker together with China & Taiwan's investment funds form the Suwa Consortium

Suwa Investment Holdings, LLC

Taiwan-listed touch panel leader. Dealing with a variety of products, including those for smartphones, tablets and PCs.

TPK Holding Co., Ltd.

Japan Display Inc.

Cosgrove Global Limited, Topnotch Corporate Limited

Private investment firms owned & managed by the office of Taiwan's Tsai family, the founding family of the Fubon group.

Business Alliances with TPK & Harvest Tech

JDI together with Suwa will strengthen & expand the LCD business and push forward the launch of OLED business

Partner

Business alliance for LCD-related business (Basic agreement)

TPK

Agreement

(details under discussion)

  • • JDI to expand LCD biz in China by leveraging global SCM capabilities & the broad customer base of touch panel maker TPK.

  • • TPK to take advantage of JDI's customer base and technological capabilities to expand their LCD business.

Business alliance for OLED mass production plan (MOU)

Harvest Tech

  • • Become a leading company in the design, manufacture and sales of OLED displays combining JDI's technology and Harvest Tech's fund raising capability.

  • • JDI and Harvest Tech to launch competitive evaporation OLED business.

  • • Produce OLED featuring low-power con-sumption & high-resolution with high yield taking advantage of JDI's production engineering capability.

  • • Secure OLED mass production line with limited financial burden for JDI to achieve stable profitable growth.

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Japan Display Inc. published this content on 12 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 April 2019 07:42:02 UTC