Japan Display : FY23/3 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 Earnings
		May 12, 2023
Japan Display Inc. (Tokyo Stock Exchange Prime Market, 6740)
Representative:	Scott Callon, Chairman & CEO
Inquiries:	Haruhiko Sakaguchi, CFO
	Telephone: [phone]www.j-display.com/english
Annual General Meeting of Shareholders:	June 24, 2023 (Scheduled)
Filing of FY23/3 Securities Report:	June 26, 2023 (Scheduled)

Supplemental Explanatory Materials for Earnings Results: Available

Earnings Results Briefing: May 12, 2023 (for institutional investors and analysts)

1. FY23/3 Consolidated Financial Results (April 1, 2022 to March 31, 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
FY23/3	270,746 -8.5%	-36,198	-	-44,386	-	-42,924	-	-25,818	-
FY22/3	295,946 -13.4%	161	-	-8,576	-	-7,964	-	-8,096	-
EBITDA	= Operating Profit +	Depreciation +	Goodwill amortization
(Reference) Comprehensive Income FY23/3: JPY -35,216M FY22/3: JPY -3,683M
	EPS	EPS		Return on		Return on			Operating
			Assets
	(Basic, JPY)	(Diluted, JPY)		Equity				Profit Margin
			(Recurring Profit)
FY23/3	-5.46		-	-26.2%	-17.8%		-16.4%
FY22/3	-2.08		-	-14.4%	-3.3%		-2.9%
(2) Consolidated Financial Position
	Total Assets	Net Assets		Shareholders'	Net Assets per
	(JPY M)	(JPY M)		Equity Ratio		Share (JPY)
FY23/3	222,696	124,431	55.8%	11.12
FY22/3	258,275	72,768	28.2%	-24.93

(Reference) Shareholders' Equity FY23/3: JPY 124,190M FY22/3: JPY 72,727M

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(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)
FY23/3		-65,665			9,777		27,685			25,754
FY22/3		-21,673			95		14,769			50,939
2. Dividends
			Dividend per Share (JPY)				Total	Payout	Dividend
									Dividend	on Equity
									Ratio
		Q1		Q2	Q3		Q4	Total
					(JPY)	(DOE)
FY22/3		-	0.00	-		0.00	0.00			-	-	-
FY23/3		-	0.00	-		0.00	0.00			-	-	-
FY24/3 (Forecast)	-	0.00	-		0.00	0.00				-
Note	The above shows dividends for common shares. For preferred shares, please see

"4. Other Information (4) 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 Forecasts

		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	For details, please see "5. Forward Outlook" on page 4.

4. Other Information

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes

- Newly included:	None
- Excluded:	Yes (Suzhou JDI Electronics Inc.)

(2) 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

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1. Number of shares outstanding
2. 1. Number of shares outstanding (including treasury shares) at period-end
      FY23/3: 3,880,393,562
      FY22/3: 2,688,171,840
   2. Number of treasury shares at period-end

FY23/3: 67

FY22/3: 67

1. Average number of shares outstanding (excluding treasury shares) during the period
   FY23/3: 4,727,206,959
   FY22/3: 3,896,395,052

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.

(4) Dividends for Preferred Shares

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		-	0.00	0.00
FY24/3 (Forecast)		-	0.00		-	0.00	0.00

(5) 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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5. Forward Outlook

While supply chain disruptions and material shortages are expected to be resolved during FY24/3, the business outlook remains uncertain due to persistent global inflation, concerns about a possible economic recession, and ongoing geopolitical risks.

JDI is currently working to transform both its business model and business portfolio, and therefore expects weak earnings in the short-term on the back of lower sales, as it withdraws from unprofitable businesses such as smartphone displays and certain automotive displays, as well as continued increases in material, energy, and other costs.

JDI will continue to work towards improving earnings by reducing fixed and variable costs, passing on cost increases, and improving productivity while accelerating its efforts towards transforming its business model and business portfolio.

The FY24/3 forecast is shown in the table below. For more details, please refer to the FY23/3 Full Year Corporate Presentation released today.

The FY24/3 FX assumption used in the forecast is JPY/USD 130.

FY24/3 Forecast

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

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6. Consolidated Financial Statements

(1) Consolidated Balance Sheet (FY23/3)

														(JPY million)
											FY22/3		FY23/3
											(Mar 31, 2022)		(Mar 31, 2023)
	Assets
		Current Assets
				Cash and deposits				52,247			26,220
				Accounts receivable - trade	56,341		40,900
				Accounts receivable - other				23,508			18,323
				Finished products and goods	19,418		18,635
				Work in process				13,218			11,802
				Raw materials and supplies	16,415		29,881
				Other				5,472			5,339
				Allowance for doubtful accounts	-92		-249
				Total Current Assets			186,529			150,853
		Non-Current Assets
			Property, Plant, and Equipment
					Buildings and structures	134,927		121,093
							Depreciation				-92,216			-81,452
							Buildings and structures, net	42,710			39,640
					Machinery, equipment, and vehicles				336,975			326,222
							Depreciation	-328,649			-322,529
							Machinery, equipment, and vehicles, net				8,326			3,692
					Land	6,663			6,552
					Lease assets				1,628			1,828
							Depreciation	-1,091		-985
							Lease assets, net				536			843
						Construction in progress	1,836			5,293
					Other				29,374			24,469
							Depreciation	-27,268		-23,120
							Other, net				2,105			1,349
					Total Property, Plant, and Equipment	62,179			57,371
			Intangible assets
					Goodwill		412			275
					Other			1,016			841
					Total Intangible Assets	1,429		1,117
			Investments and Other Assets
					Securities investments	17			248
					Deferred tax assets			385			189
					Other	7,735		12,918
					Allowance for doubtful accounts			-2			-1
					Total Investments and Other Assets	8,136		13,354
			Total Non-Current Assets				71,745			71,843
		Total Assets		258,275		222,696

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