FY22/3 H1 Earnings

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This English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

	FY22/3 H1 Earnings
	November 12, 2021
Japan Display Inc. (Tokyo Stock Exchange First Section, 6740)
Representative:	Scott Callon, Chairman & CEO
Inquiries:	Akihito Okochi, CFO
	Telephone: [phone]www.j-display.com/english

Supplemental Explanatory Materials for Earnings Results: Available

Earnings Results Briefing: November 12, 2021 (for institutional investors and analysts)

1. FY22/3 H1 Consolidated Financial Results (April 1, 2021 to September 30, 2021)

(1) Consolidated Financial Results

	FY21/3 H1	FY22/3 H1
	(JPY million)	YoY	(JPY million)	YoY
Sales	199,795	-16.0%	137,860	-31.0%
EBITDA	(2,160)	-	(2,761)	-
Operating Profit (Loss)	(9,879)	-	(7,033)	-
Recurring Profit (Loss)	(15,210)	-	(7,570)	-
Net Income (Loss)	(36,286)	-	(8,753)	-
Net Income (Loss) per Share (JPY)	(15.59)	-	(2.96)	-
Diluted Net Income (Loss) per Share (JPY)	-	-	-	-
(Reference) Comprehensive Income (Loss)	(35,265)	-	(7,860)	-

Note 1 EBITDA = Operating Profit + Depreciation + Goodwill amortization

1. 2 FY21/3 H1 Recurring Profit (Loss) has been adjusted to reflect a change in JDI accounting treatment in FY21/3 Q3 with respect to gains on sale of fixed assets.

2. Consolidated Financial Position

	FY21/3	FY22/3 H1
	(JPY million)	(JPY million)
Total Assets	224,998	230,045
Net Assets	41,829	57,890
Shareholders' Equity Ratio	17.6%	24.1%
(Reference) Shareholders' Equity	39,511	55,415

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2. Dividends

		Q1		Q2	Q3	Q4	Total
FY21/3	-	0.00		-	0.00	0.00
FY22/3	-	0.00
FY22/3 (forecast)					-	0.00	0.00

Note 1 Changes from the most recently announced dividend forecast: None

2 The above shows dividends for common shares. For preferred shares, please see "(Reference) Dividends for Preferred Shares" below.

3. FY22/3 Q3 Full-Year Consolidated Earnings Forecast (April 1, 2021 to March 31, 2022)

	FY22/3 Full-Year
	(JPY million)	YoY
Sales	297,000	-13.1%
EBITDA	(4,400)	-
Operating Profit (Loss)	(13,100)	-
Recurring Profit (Loss)	(14,500)	-
Net Income (Loss)	(18,400)	-
Net Income per Share	(4.77)	-

Note Changes from the most recently announced financial forecast: Yes

JDI revised upward its FY22/3 full-year sales forecast today. For details, please see "1. Overview of Financial Results (3) Forward Outlook" on page 9.

(Reference)
Q3 Forecast (JPY million):	Sales 73,000	EBITDA (2,000)	Operating Profit (4,000)
Q4 Forecast (JPY million):	Sales 86,000	EBITDA 300	Operating Profit (2,100)
4. Other Information
(1) Changes in significant subsidiaries:		None
Material changes in scope of consolidation
- New subsidiaries:			None
- Subsidiaries removed from consolidation:	None

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial

statements:

Yes

1. Changes in accounting policy, changes in accounting estimates, and revisions to previous

financial statements
(i)	Accounting policy changes based on amendments to accounting standards:	Yes
(ii)	Accounting policy changes other than (i) above:	None
(iii)	Accounting estimate changes:	None
(iv)	Revisions to previous financial statements:	None

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1. Number of shares outstanding

1. Number of shares outstanding (including treasury shares) at period-end

FY22/3 H1:	2,538,170,732
FY21/3:	2,538,168,239

1. Number of treasury shares at period-end

FY22/3 H1:	67
FY21/3:	4

1. Average number of shares outstanding (excluding treasury shares) during the period

FY22/3 H1:	2,955,670,166
FY21/3 H1:	2,327,837,600

Note: All preferred shares outstanding have the same rights as common shares in regard to

rights to receive dividends, and are therefore included in the number of shares outstanding at the end of periods and the average number of shares outstanding during the periods.

Please note that quarterly earnings reports are not subject to independent auditor review.

Note on Appropriate Use of Forecasts

Forward-looking statements contained in these materials are based on judgements regarding information available to JDI as of the announcement date. However, these statements involve risk and uncertainties, and actual earnings may differ significantly from the indicated forecasts.

(Reference)

Dividends for Preferred Shares

Dividends for preferred shares are shown below.

Class A preferred share				Dividend per Share (JPY)
	Q1		Q2		Q3		Q4		Total
FY21/3		-	0.00		-	0.00	0.00
FY22/3		-	0.00
FY22/3 (forecast)						-	0.00	0.00
Class B preferred share				Dividend per Share (JPY)
	Q1		Q2		Q3		Q4		Total
FY21/3		-	0.00		-	0.00	0.00
FY22/3		-	0.00
FY22/3 (forecast)						-	0.00	0.00
Class D preferred share				Dividend per Share (JPY)
	Q1		Q2		Q3		Q4		Total
FY21/3		-	0.00		-	0.00	0.00
FY22/3		-	0.00
FY22/3 (forecast)						-	0.00	0.00

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Class E preferred share					Dividend per Share (JPY)
	Q1			Q2		Q3		Q4		Total
FY21/3			-	0.00		-	0.00	0.00
FY22/3			-	0.00
FY22/3 (forecast)							-	0.00	0.00

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1. Overview of Financial Results

(1) Consolidated Earnings

FY22/3 H1 Consolidated Earnings (April 1, 2021 to September 30, 2021)

Year-on-Year Comparison

		FY21/3 H1	FY22/3 H1	YoY
		(JPY million)	(JPY million)	Change		(%)
	Mobile	133,964	62,162	(71,801)		-53.6 %
	Automotive	38,819	44,756	5,936		+15.3 %
	Non-Mobile	27,011	30,941	3,930		+14.5 %
Sales	199,795	137,860	(61,934)		-31.0 %
EBITDA	(2,160)	(2,761)	(600)		-
Operating Profit (Loss)	(9,879)	(7,033)	2,846		-
Recurring Profit (Loss)	(15,210)	(7,570)	7,639		-
Net Income (Loss)	(36,286)	(8,753)	27,533		-

Note 1 EBITDA = Operating Profit + Depreciation + Goodwill amortization

2 FY21/3 H1 Recurring Profit (Loss) has been adjusted to reflect a change in JDI accounting treatment in FY21/3 Q3 with respect to gains on sale of fixed assets.

The business environment during FY22/3 H1 continued to be difficult. Fierce competition in the small and medium-sized display market continues, while demand for smartphone LCDs is declining. In addition, tight global supply and soaring prices for semiconductor chips and other parts and materials had a major impact.

Under these circumstances, JDI has focused on rebuilding existing businesses and strengthening profitability to achieve the goal of FY22/3 Q4 EBITDA profitability. Moreover, JDI has worked to establish new business models and commercialize high value-add technologies to strengthen profitability. In response to tight supplies of parts and materials, JDI concluded long-term contracts with major semiconductor vendors and worked to improve profitability by passing through higher parts and materials costs to JDI selling prices.

As a result, total sales declined 31% year on year (YoY) to JPY 137,860 million, primarily due to a c. 50% drop in Mobile sales. In Automotive and Non-Mobile, sales increased due to strong demand despite production limitations caused by a shortage of parts and materials.

While sales fell sharply, a significantly lowered break-even point made possible by improvements in the product mix and cost reduction effects held the EBITDA loss to JPY 2,761 million (JPY -600 million YoY) and reduced the operating loss by JPY 2,846 million to JPY 7,033 million. A recurring loss of JPY 7,570 million, an improvement of JPY 7,639 million YoY, was driven by a lower operating loss and lower Hakusan Plant maintenance costs following its sale. A net loss of JPY 8,753 million (a decrease of JPY 27,533 million YoY) was supported by lower business restructuring expenses and impairment losses.

FY22/3 H1 Sales by Product

Mobile

Mobile sales, which include displays for smartphones and tablets, decreased by 53.6% YoY to JPY 62,162 million, as demand for LCD displays continued to decline. Mobile's share of total sales fell from 67.1% in FY21/3 H1 to 45.1%.

Mobile demand has continued to see significant year-on-year declines recently, but is expected to

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