Japan Display : FY24/3 Q1 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.

FY24/3 Q1 Earnings

August 9, 2023

Japan Display Inc. (JDI) (Tokyo Stock Exchange Prime Market, 6740) Representative: Scott Callon, Chairman & CEO

Inquiries: Haruhiko Sakaguchi, CFO

Telephone: [phone]www.j-display.com/englishSupplemental Explanatory Materials for Earnings Results: Available

Earnings Results Briefing: August 9, 2023 (for institutional investors and analysts)

1. FY24/3 Q1 Consolidated Financial Results (April 1, 2023 to June 30, 2023)

(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
	FY24/3 Q1	52,996	-7.2%	-12,165	-		-13,883	-			-12,080	-		-12,248	-
	FY23/3 Q1	57,099	-13.4%	-4,711	-		-6,872	-			-4,324	-		-5,074	-
	EBITDA = Operating Profit + Depreciation + Goodwill amortization
	(Reference) Comprehensive Income FY24/3 Q1: JPY -10,964M FY23/3 Q1: JPY -1,733M
		EPS		EPS
		(Basic, JPY)		(Diluted, JPY)
	FY24/3 Q1		-1.98			-
	FY23/3 Q1		-1.08			-
(2) Consolidated Financial Position
		Total Assets		Net Assets				Shareholders'
		(JPY M)		(JPY M)				Equity Ratio
	FY24/3 Q1		223,566		113,466		50.6%
	FY23/3		222,696		124,431		55.8%
	(Reference) Shareholders' Equity FY24/3 Q1: JPY 113,226M FY23/3: JPY 124,190M
(3) Consolidated Cash Flows
		Cash Flows from		Cash Flows from		Cash Flows from		Cash and Cash
					Equivalents
		Operations		Investments		Financing
						at Period-End
		(JPY M)		(JPY M)				(JPY M)
								(JPY M)
	FY24/3 Q1		-9,707		-7,215			11,804			21,887
	FY23/3 Q1		-11,355		-3,249			-106			39,375
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2. Dividends

			Dividend per Share (JPY)
	Q1		Q2	Q3	Q4	Total
FY23/3		-	0.00	-	0.00	0.00
FY24/3		-
FY24/3 (Forecast)			0.00	-	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. FY24/3 Full-Year (April 1, 2023 to March 31, 2024) and Half-Year (April 1, 2023 to September 30, 2023) Consolidated Earnings Forecast

	Sales		EBITDA		Operating Profit
	(JPY M)		YoY	(JPY M)		YoY	(JPY M)		YoY
FY24/3 H1	111,400		-19.4%	-26,100		-	-29,100		-
FY24/3 Full Year	240,000		-11.4%	-34,000		-	-40,400		-
	Recurring Profit	Net Income	EPS
	(JPY M)		YoY	(JPY M)		YoY	（JPY）
FY24/3 H1	-29,900		-	-32,200		-			-5.20
FY24/3 Ful Year	-43,200		-	-47,800		-			-7.72

Note	Changes from the most recently announced earnings forecast: None

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

2

1. Number of shares outstanding
2. 1. Number of shares outstanding (including treasury shares) at period-end FY24/3 Q1: 3,880,393,562
      FY23/3: 3,880,393,562
   2. Number of treasury shares at period-end

FY24/3 Q1: 67

FY23/3: 67

1. Average number of shares outstanding (excluding treasury shares) during the period FY24/3 Q1: 6,188,721,284
   FY23/3 Q1: 4,715,379,062

Note All preferred shares outstanding have the same rights as common shares with regard to rights to receive dividends, and are therefore included in the number of shares outstanding at period-ends and the average number of shares outstanding during periods.

(5) Dividends for Preferred Shares

Class E Preferred Shares			Dividend per Share (JPY)
Q1		Q2		Q3		Q4		Total
FY23/3		-	0.00		-	0.00	0.00
FY24/3		-
FY24/3 (Forecast)			0.00		-	0.00	0.00

1. Note on Appropriate Use of Forecast
   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.

5. Forward Outlook

The business environment continues to be unpredictable, but based on the Q1 results and current customer demand, JDI maintains its consolidated earnings forecast for H1 and full year announced on May 12, 2023. The FX assumption used in the forecast for the nine months from Q2 on wards is USD/JPY 130.

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6. Consolidated Financial Statements

Consolidated Balance Sheet (FY24/3 Q1)

									(JPY million)
						FY23/3		FY24/3 Q1
						(Mar 31, 2023)		(June 30, 2023)
Assets
Current Assets
		Cash and deposits			26,220			22,410
		Accounts receivable - trade	40,900	36,842
		Accounts receivable - other			18,323			16,218
		Finished products and goods	18,635	20,802
		Work in process			11,802			12,152
		Raw materials and supplies	29,881	31,378
		Other			5,339			6,196
		Allowance for doubtful accounts	-249	-262
		Total Current Assets			150,853			145,739
Non-Current Assets
	Property, Plant, and Equipment
			Buildings and structures, net	39,640	38,943
			Machinery, equipment, and vehicles, net			3,692			4,120
			Land	6,552	6,552
			Lease assets, net			843			869
			Construction in progress	5,293	10,907
			Other, net			1,349			1,640
			Total Property, Plant, and Equipment	57,371	63,033
	Intangible assets
			Goodwill	275	240
			Other			841			766
			Total Intangible Assets	1,117	1,007
	Investments and Other Assets
			Other	13,356	13,788
			Allowance for doubtful accounts			-1			-3
			Total Investments and Other Assets	13,354	13,785
	Total Non-Current Assets			71,843			77,826
Total Assets	222,696	223,566

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										(JPY million)
							FY23/3		FY24/3 Q1
							(Mar 31, 2023)		(June30, 2023)
	Liabilities
	Current Liabilities
			Accounts payable - trade			44,616			44,626
			Electronically recorded obligations - operating	606	689
			Short-term loans payable			－			12,000
			Income taxes payable	60	57
			Provision for bonuses			2,703			1,438
			Advances received	3,188	2,797
			Provision for business restructuring			1,977			1,809
			Provision for contract losses	4,277	6,758
			Other			25,731			25,371
			Total Current Liabilities	83,162	95,549
		Non-Current Liabilities
			Provision for business restructuring	725	725
			Net defined benefit pension liability			8,213			8,475
			Other	6,164	5,349
			Total Non-Current Liabilities			15,102			14,549
	Total Liabilities	98,265	110,099
	Net Assets
	Shareholders' Equity
			Capital			100			100
			Capital reserve	141,205	141,205
			Retained earnings			-22,129			-34,378
			Treasury shares	-0	-0
			Total Shareholders' Equity			119,175			106,927
	Accumulated Other Comprehensive Income
			Valuation difference on other securities			0			1
			Foreign currency translation adjustment	3,901	5,627
			Adjusted value of defined benefit pension			1,112			669
			Total Accumulated Other Comprehensive	5,014	6,298
			Income
		Share Acquisition Rights			240			240
	Total Net Assets	124,431	113,466
	Total Liabilities & Net Assets			222,696			223,566

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