Japan Display : FY23/3 H1 Earnings

[Provisional Translation Only]

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.

FY23/3 H1 Earnings

November 10, 2022

Japan Display Inc. (Tokyo Stock Exchange Prime Market, 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 10, 2022 (for institutional investors and analysts)

1. FY23/3 H1 Consolidated Financial Results (April 1, 2022 to September 30, 2022)

(1) Consolidated Financial Results

		Sales	EBITDA	Operating Profit		Recurring Profit	Net Income
		(JPY M)	YoY	(JPY M)	YoY	(JPY M) YoY		(JPY M)	YoY	(JPY M)	YoY
	FY23/3 H1	138,296	0.3%	-7,485	-	-11,779	-	-8,401	-	-11,633	-
	FY22/3 H1	137,860	-31.0%	-2,761	-	-7,033	-	-7,570	-	-8,753	-
	EBITDA = Operating Profit + Depreciation + Goodwill amortization
	(Reference) Comprehensive Income FY23/3 H1: JPY -7,761M		FY22/3 H1: JPY -7,860M
		EPS				EPS
		(Basic, JPY)				(Diluted, JPY)
	FY23/3 H1		-2.47					-
	FY22/3 H1		-2.96					-
(2) Consolidated Financial Position
		Total Assets		Net Assets		Shareholders'
		(JPY M)		(JPY M)		Equity Ratio
	FY23/3 H1	277,551				65,006			23.4%
	FY22/3	258,275				72,768			28.2%
	(Reference) Shareholders' Equity FY23/3 H1: JPY 64,966M		FY22/3: JPY 72,727M
(3) Consolidated Cash Flows
		Cash Flows		Cash Flows		Cash Flows			Cash and Cash
		from		from				from			Equivalents at
		Operations		Investments		Financing				Period-End
		(JPY M)		(JPY M)		(JPY M)				(JPY M)
	FY23/3 H1	-14,209				-6,327			12,770		47,232
	FY22/3 H1		-6,803				-4,281			4,376		48,986

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2. Dividends

				Dividend per Share (JPY)
	Q1		Q2		Q3		Q4	Total
FY22/3		-		0.00	-		0.00	0.00
FY23/3		-		0.00
FY23/3 (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 "4. Other Information (5) Dividends for Preferred Shares" below.

3. FY23/3 Full-Year Consolidated Earnings Forecast (April 1, 2022 to March 31, 2023)

		Sales	EBITDA	Operating	Recurring	Net	EPS
		Profit	Profit	Income
		(JPY M)	(JPY M)	(JPY M)	(JPY M)	(JPY M)	（JPY）
FY23/3		280,000	-26,400	-34,900	-32,000	-35,800	-7.59
YoY		-5.4%	-	-	-	-	-
Note	Changes from the most recently announced financial forecast: Yes

As a result of reviewing FY23/3 H1 and the future outlook, JDI has revised down its FY23/3 Q3, Q4 and full-year sales and earnings forecast announced on May 13, 2022. For details, please see "Difference Between FY23/3 H1 Earnings Forecast and Actual Results & Downward Revision of Full-Year Earnings Forecast" announced today.

4. Other Information

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. • Newly included: None
   • Excluded: None
3. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
4. Changes in accounting policies, changes in accounting estimates, and restatements

1. Accounting policy changes based on amendments to accounting standards: None

(ii)	Accounting policy changes other than (i) above:	None
(iii)	Accounting estimate changes:	None
(iv)	Restatements:	None

1. Number of shares outstanding
2. 1. Number of shares outstanding (including treasury shares) at period-end FY23/3 H1: 2,688,171,840
      FY22/3: 2,688,171,840
   2. Number of treasury shares at period-end

FY23/3 H1: 67

FY22/3: 67

1. Average number of shares outstanding (excluding treasury shares) during the period FY23/3 H1: 4,715,379,062
   FY22/3 H1: 2,955,670,166

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

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outstanding at the end of periods and the average number of shares outstanding during the periods.

(5) Dividends for Preferred Shares

Class A Preferred Shares				Dividend per Share (JPY)
Q1			Q2	Q3		Q4		Total
FY22/3		-	0.00	-	0.00		0.00
FY23/3		-	0.00
FY23/3 (Forecast)					-	0.00		0.00
Class B Preferred Shares				Dividend per Share (JPY)
Q1			Q2	Q3		Q4		Total
FY22/3		-	0.00	-	0.00	0.00
FY23/3		-	0.00
FY23/3 (Forecast)					-	0.00	0.00
Class D Preferred Shares				Dividend per Share (JPY)
Q1			Q2	Q3		Q4		Total
FY22/3		-	0.00	-	0.00		0.00
FY23/3		-	0.00
FY23/3 (Forecast)					-	0.00		0.00
Class E Preferred Shares				Dividend per Share (JPY)
Q1			Q2	Q3		Q4		Total
FY22/3		-	0.00	-	0.00		0.00
FY23/3		-	0.00
FY23/3 (Forecast)					-	0.00		0.00

1. 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.

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1. Consolidated Financial Statements

(1) Consolidated Balance Sheet (FY23/3 H1)

											(JPY million)
								FY22/3		FY23/3 H1
								(Mar 31, 2022)		(Sep 30, 2022)
	Assets
		Current Assets
			Cash and deposits			52,247			47,689
		Accounts receivable - trade	56,341		50,803
			Accounts receivable - other			23,508			27,266
		Merchandise and finished goods	19,418		25,947
			Work in process			13,218			17,462
		Raw materials and supplies	16,415		27,510
			Other			5,472			5,547
		Allowance for doubtful accounts	-92		-93
			Total Current Assets			186,529			202,133
		Non-Current Assets
			Property, Plant, and Equipment
		Buildings and structures, net	42,710		41,630
			Machinery, equipment, and vehicles, net			8,326			7,325
				Land	6,663		6,664
				Lease assets, net			536			646
				Construction in progress	1,836		5,335
				Other, net			2,105			1,846
				Total Property, Plant, and Equipment	62,179		63,449
			Intangible assets
				Goodwill	412		343
				Other			1,016			825
				Total Intangible Assets	1,429		1,169
			Investments and Other Assets
				Other	8,138		10,801
				Allowance for doubtful accounts			-2			-1
				Total Investments and Other Assets	8,136		10,799
			Total Non-Current Assets			71,745			75,418
	Total Assets	258,275		277,551

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									(JPY million)
						FY22/3		FY23/3 H1
						(Mar 31, 2022)		(Sep 30, 2022)
Liabilities
	Current Liabilities
			Accounts payable - trade			58,266			68,101
		Electronically recorded obligations - operating	691	583
			Short-term loans payable			－			13,000
		Current portion of long-term loans payable	20,000	20,000
			Income taxes payable			764			895
		Provision for bonuses	2,906	2,880
			Advances received			3,330			4,010
		Other	28,851	32,250
			Total Current Liabilities			114,811			141,722
	Non-Current Liabilities
			Long-term loans payable			53,680			53,680
		Net defined benefit pension liability	10,060	9,513
			Other			6,954			7,628
		Total Non-Current Liabilities	70,695	70,822
	Total Liabilities			185,507			212,544
Net Assets
	Shareholders' Equity
		Capital	100	100
			Capital reserve			54,525			54,525
		Retained earnings	3,688	-7,945
			Treasury shares			-0			-0
		Total Shareholders' Equity	58,314	46,680
	Accumulated Other Comprehensive Income
		Valuation difference on available-for-sale	0	1
		securities
			Foreign currency translation adjustment			13,552			17,312
		Adjusted value of defined benefit pension	859	971
			Total Accumulated Other Comprehensive			14,413			18,286
			Income
	Share Acquisition Rights	40	40
	Total Net Assets			72,768			65,006
Total Liabilities & Net Assets	258,275	277,551

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