September 10, 2020

Japan Display Inc.

Consolidated Financial Results for the Three Months of Fiscal Year 2020 (Japanese GAAP)

Company name:

Japan Display Inc. ("JDI")

Security code:

6740

Listing:

Tokyo Stock Exchange (First Section)

Website:

https://www.j-display.com/english/

Representative:

Minoru Kikuoka, Representative Executive Officer, President and CEO

Contact:

Akihito Okochi, Executive Officer and CFO

Phone:

+81-3-6732-8100

Filing of 1Q-FY2020 quarterly securities report:

September 10, 2020

Commencement of dividend payments:

-

Supplementary materials for earnings results:

Available

Investor and Analyst briefing for earnings results:

September 10, 2020, web conference, language: Japanese

(Figures in this report are rounded down to the nearest million yen.)

1. Consolidated results of operations for the three months ended June 30, 2020

(1) Results of operations

(Millions of yen, except per share amounts)

3 mo. ended

YoY

3 mo. ended

YoY

June 30, 2021

(%)

June 30, 2020

(%)

Net sales ·················································

87,999

90,421

(2.7)

Operating income (loss) ·······························

(7,006)

-

(27,073)

-

Ordinary income (loss)·································

(8,799)

-

(31,207)

-

Net income (loss) attributable to owners of the parent

(16,286)

-

(78,913)

-

Net income (loss) per share

-Basic··················································

(7.06)

(93.26)

-Diluted ···············································

-

-

(Reference) Comprehensive income (loss) ··········

(16,255)

-

(79,886)

-

(2) Financial position

(Millions of yen)

June 30, 2020

March 31, 2020

Total assets ···············································

330,763

389,746

Net assets ·················································

37,125

53,363

Shareholders' equity ratio (%) ·························

10.5

13.1

(Reference) Shareholders' equity ······················

34,857

51,103

2. Dividends

1Q-end

2Q-end

3Q-end

FY-end

Total

Year ended March 31, 2019···············

-

0.00

-

0.00

0.00

Year ending March 31, 2020··············

-

0.00

Year ending March 31, 2021 (forecast)··

-

0.00

0.00

Note: Changes from the most recently announced dividend forecast:

None

3. Financial forecast for 2Q of FY 2020 and full year of FY 2020

(Millions of yen)

2Q-FY2020

FY 2020 (full year)

Amount

YoY Change

Amount

YoY Change

Net ales

11,000~ 12,000

(25.3)% ~ (18.5)%

378,017~ 428,419

(25.0)% ~ (15.0)%

Operating Profit

(3,000) ~ 0

Note:

Changes from the most recently announced financial forecast: Yes

Details are shown on page 5 of the attachment "1. Quarterly Results Information, (3) Note Concerning the Forecast of Consolidated Financial Results."

Notes:

(1) Changes in significant subsidiaries to scope of consolidation: None (Changes in specified subsidiaries resulting in the change of consolidation scope)

Newly consolidated: None

Removed from consolidation: None

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

For details please see "(c) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements" in "(3) Notes on Quarterly Consolidated Financial Statements" in the attachment.

(3) Changes in accounting policy, changes in accounting estimate and retrospective restatements

a) Changes in accounting policy in accordance with amendments to accounting standards:

None

b) Changes in accounting policy other than a) above:

None

c) Changes in accounting estimates:

None

d)

Retrospective restatement:

None

(4) Number of shares outstanding

June 30, 2020

March 31, 2020

a)

Number of shares outstanding (incl. treasury shares) ·············

2,538,165,800

2,538,165,800

b)

Number of treasury shares············································

3

3

3 mo. ended

3 mo. ended

June 30, 2020

June 30, 2019

c)

Average number of shares outstanding (quarterly cumulative)

2,307,045,797

846,165,797

Note: The Class A preferred shares and the Class B preferred shares have the same rights as common shares inregard to rights to receive dividends of surplus, 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.

* Quarterly earnings reports are not subject to quarterly review procedures by independent auditors.

Proper use of earnings forecasts and other matters warranting special mention

Forward-looking information, such as earnings forecasts in this document, is based on information available to JDI at the time the document was prepared and on management's reasonable assumptions. Such information should not be interpreted as a guarantee of future performance or results. Furthermore, forward-looking information is

necessarily subject to a number of factors that may cause actual results to differ materially from those results implied by the expectations suggested by such information.

Attachments

1. Quarterly Results Information

(1) Overview of Results of Operations

Consolidated Results of Operations for The First Quarter of FY 2020 (April 1 - June 30, 2020)

Year on year comparison

(Millions of yen)

1Q-FY 2019

1Q-FY 2020

YoY

Change

(%)

Mobile Device Category

53,683

61,723

8,039

15.0

Automotive Category

25,519

14,769

(10,750)

(42.1)

Non-Mobile Device Category

11,217

11,506

289

2.6

Net sales

90,421

87,999

(2,421)

(2.7)

Gross profit

(16,784)

1,037

17,821

-

Operating income (loss)

(27,073)

(7,006)

20,066

-

Ordinary income (loss)

(31,207)

(8,799)

22,408

-

Net income (loss) attributable to owners of

(78,913)

(16,286)

62,626

-

the parent

EBITDA*

(20,183)

(3,209)

16,974

-

Notes: EBITDA = Operating profit + Depreciation (operating costs) + Amortization of goodwill

In the first quarter of fiscal year 2020, the business environment surrounding JDI became more formidable due to continued severe competition in the small and medium-sized display business, in addition to reduced global consumption brought on by the international coronavirus pandemic. The company's supply chain, which suffered disruptions in the fourth quarter of fiscal year 2019, experienced delays in a recovery of production due to the prolonged quarantine of urban areas in the Philippines. However, because procurement and production were at almost normal levels in China, the overall impact on the supply chain was minimal. On the other hand, weak demand for smartphone and automotive displays, which are JDI's main products, pushed down sales.

As a result, net sales for the first quarter were JPY 87,999 million, down 2.7% from the same period last year when sales fell due to the effects of trade friction between the United States and China and customer inventory adjustments, leading to an operating loss of JPY 7,006 million. Operating losses continued due to low sales, but because of the benefits of fixed-cost reductions resulting from the structural reforms implemented in the first half of the previous fiscal year and cost-saving efforts, as well as a cost of sales reduction effect stemming from increased inventory that was caused by a sharp decrease in demand tied to the coronavirus pandemic, these losses declined by JPY 20,066 million year on year (YoY). Also, an ordinary loss of JPY 8,799 million was recorded. Due to the transfer of equity- method shares in the previous quarter, a share of loss of entities accounted for using the equity method recorded in the first quarter of the previous year (JPY 2,031 million) did not occur in the first quarter of fiscal year 2020, leading non-operating income/expense to improve by JPY 2,341 million on a net basis and ordinary losses in the first quarter of the current fiscal year to decline by JPY 22,408 million YoY. In addition, as a result of recording an extraordinary loss of JPY 7,618 million for a business restructuring expense related to the transfer of the Hakusan Plant, the net loss attributable to owners of the parent in the first quarter was JPY 16,286 million. This amount represents an improvement of JPY 62,626 million YoY in light of the extraordinary loss of JPY 47,741 million for a business restructuring expense, including the write-down of Hakusan Plant assets, that was recorded in the first quarter of

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Japan Display Inc. published this content on 14 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2020 08:39:01 UTC