Japan Display : Difference Between FY23/3 Earnings Forecast and Actual Results & Recording of Extraordinary Gain and Loss

[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.

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

Difference Between FY23/3 Earnings Forecast and Actual Results &

Recording of Extraordinary Gain and Loss

Japan Display Inc. (JDI) is disclosing the details on the difference between its actual FY23/3 Q4 standalone and full-year earnings and its forecast announced on February 10, 2023.

In addition, JDI recorded an extraordinary gain on debt forgiveness, an extraordinary loss on production end at the Higashiura Fab, and a manufacturing asset impairment.

1. Difference Between FY23/3 Q4 and Full Year Forecast & Actual Results

1. FY23/3 Q4 Stand Alone (January 1, 2023 to March 31, 2023)

(JPY million, except EPS)

	Sales	EBITDA	Operating	Recurring	Net	EPS
	Profit	Profit	Income	（JPY）
Forecast (A)	58,000	-23,100	-24,900	-25,400	-14,500
Result (B)	62,714	-20,196	-22,006	-21,936	-8,433	-1.77
Change (B-A)	+4,714	+2,904	+2,894	+3,464	+6,067
% Change	+8.1%	－	－	－	－
Reference: FY22/3	86,427	3,850	1,540	2,109	-1,765	-0.40
Q4 Stand Alone

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

(JPY million, except EPS)

	Sales	EBITDA	Operating	Recurring	Net	EPS
	Profit	Profit	Income	（JPY）
Forecast (A)	266,000	-39,100	-47,300	-46,400	-31,900	-6.74
Result (B)	270,746	-36,198	-44,386	-42,924	-25,818	-5.46
Change (B-A)	+4,746	+2,902	+2,914	+3,476	+6,082
% Change	+1.8%	－	－	－	－
Reference: FY22/3	295,946	161	-8,576	-7,964	-8,096	-2.08

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1. Reason for Difference Between FY23/3 Q4 Stand Alone Forecast and Actual Results
   Sales came in above forecast, which conservatively factored in decreased demand for consumer electronics. EBITDA, operating profit, and recurring profit also came in above forecast on higher sales and fixed cost reductions. Net income came in above forecast due to the above reasons and below forecast expenses related to the production end at Higashiura Fab.
   For further details on the FY23/3 financial results please refer to today's release "FY23/3 Earnings."

2. Extraordinary Gain and Loss

1. Extraordinary Gain Debt Forgiveness
   JDI recorded a FY23/3 Q4 extraordinary gain on the forgiveness of debt of JPY 15 billion by Ichigo pursuant to the capital alliance agreement executed on February 10, 2023.
2. Extraordinary Loss

1. Impairment Loss

JDI recorded a FY23/3 Q4 extraordinary loss of JPY 833 million on the impairment of some of its manufacturing assets in accordance with the "Accounting Standard for Impairment of Fixed Assets."

This brings the total impairment loss for FY23/3 to JPY 2,803 million.

2. Business Restructuring Expenses

JDI recorded a FY23/3 Q4 extraordinary loss of JPY 610 million on business restructuring expenses related to the production end at the Higashiura Fab in March 2023.

This brings total business restructuring expenses for FY23/3 to JPY 5,844 million on a consolidated basis and JPY 2,329 million on a non-consolidated basis.

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