Japan Posting: Extraordinary Gain on Chinese Claims (Disclosure Update), Foreign Exchange Gain and Impairment

[Provisional Translation Only]

This English translation of the original Japanese document is provided for informational purposes only. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

August 9, 2022

Japan Display Inc. (Tokyo Stock Exchange main market, 6740)

Representative: Scott Callon, President and CEO

Information: Akihito Okochi, Chief Financial Officer

Phone: +81-3-6732-8100

www.j-display.com/english

Extraordinary gain on Chinese claims (disclosure update),

Foreign exchange gain and impairment

In its FY23/3 results announced today, Japan Display Inc. (JDI) recorded an extraordinary gain on China receivables, a foreign exchange (FX) gain and an extraordinary loss due to impairment of certain assets Manufacturing.

The extraordinary gain was previously disclosed in the May 13, 2022 release “(Disclosure Update) Extraordinary Gain on China Claims”.

1. Exceptional gain on Chinese receivables (reversal of corporate restructuring costs)

JDI recorded an extraordinary gain of 571 million yen on the write-off of corporate restructuring expenses in FY22/3 after it sold its receivables to a Chinese company (the “Receivables”) and planned to ‘record the remaining expected recovery amount of c. JPY 1 billion as cancellation of corporate restructuring expenses in FY23/3.

With confirmation of a c. Payment of 2 billion yen received for receivables on July 11, 2022, JDI recorded a write-off of corporate restructuring charges of 1,041 million yen as an extraordinary gain.

2. Effect gain

JDI recorded a foreign exchange gain of JPY2,773 million as non-operating revenue in FY23/3Q1. The foreign exchange gain is the result of the differences in the financial value of income and expenses between the time of their recording and their settlement, as well as the translation into foreign currencies of the monetary assets and liabilities denominated in foreign currencies held by JDI on the last day of the accounting period.

3. Extraordinary loss (depreciation)

Based on Accounting standard for the depreciation of fixed assets, JDI recorded an impairment loss of JPY 1,119 million on some of its manufacturing assets as an exceptional loss.

4. Impact on income

Extraordinary Gain, FX Gain and Extraordinary Loss were reflected in JDI’s 1

Results for the 23/3 financial year announced today.

As JDI incorporated a c. Extraordinary gain of 1 billion yen for Chinese claims in its earnings forecast for FY23/3, the impact of this extraordinary gain on the difference between its earnings forecast for the first quarter of FY23/3 and actual results, as announced in today’s release “Difference Between 1Q FY23/3 Earnings Forecast and Actual Results (Lower Sales/Better Earnings)” is minimal.

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