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Occurring Fact6740Japan Display Inc.Electrical Equipment and Precision Instruments

Notice Regarding the Recording of Non-Operating Income, Non-Operating Expenses, Extraordinary Income and Extraordinary Losses

In the fourth quarter of the fiscal year ending March 2026, the Company recognized gains on the sale of raw materials and extraordinary income, while also recognizing multiple losses, including interest expenses, impairment losses on investment securities and impairment losses. The reversal of costs associated with the cessation of production at the Mobara Plant also reduced extraordinary losses.

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Notice Regarding the Recording of Non-Operating Income, Non-Operating Expenses, Extraordinary Income and Extraordinary Losses

Subject Entity

Japan Display Inc. (reporting company) and its consolidated subsidiary, JDI Design and Development 合同会社

Target Locations / Products

Mobara Plant, former Higashiura Plant, assets related to the display business, and investment securities held by the Company’s group

OccurrenceFourth-quarter accounting period of the fiscal year ending March 2026 (specific date: Not disclosed)
This disclosure05/14/2026
Cause

Disposal of raw materials that were no longer needed following the cessation of production at the Mobara Plant; interest on short-term borrowings and other liabilities; recognition of losses based on the financial condition of investees; a decline in the recoverability of receivables due to the deterioration in the financial condition of JDI Design and Development 合同会社; completion of the settlement of estimated costs associated with the cessation of production at the former Higashiura Plant; assessment of the near-term profitability of assets related to the display business; refinement of cost estimates associated with the cessation of production at the Mobara Plant; and impairment of shares whose real value had declined significantly

Amount of Impact on Business Performance

Fourth quarter: gain on sale of raw materials of ¥62 million (non-operating income, consolidated and non-consolidated); interest expenses of ¥2,410 million (non-operating expenses, consolidated); valuation loss on investment securities of ¥3,212 million (non-operating expenses, consolidated); provision for doubtful accounts of ¥1,600 million (non-operating expenses, non-consolidated; eliminated in consolidation); other extraordinary income of ¥61 million (consolidated and non-consolidated); impairment losses of ¥1,228 million (consolidated) and ¥1,006 million (non-consolidated); reversal of business restructuring expenses of ¥1,851 million (consolidated) and ¥1,810 million (non-consolidated, reducing extraordinary losses); and other extraordinary losses of ¥39 million (consolidated and non-consolidated). Cumulative for the fiscal year ending March 2026: gain on sale of raw materials of ¥432 million; interest expenses of ¥8,733 million; valuation loss on investment securities of ¥3,284 million; impairment losses of ¥1,972 million (consolidated) and ¥1,649 million (non-consolidated); and business restructuring expenses of ¥9,423 million (consolidated) and ¥9,207 million (non-consolidated)

Accounting period in which recognized

Fourth-quarter accounting period of the fiscal year ending March 2026 and the fiscal year ending March 2026

Impact on Earnings Forecast

No revision to the earnings forecast is stated. The above matters are reflected in the Consolidated Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP], announced today.

Amount of receivables at risk of non-collection or delayed collection

Receivables owed by JDI Design and Development 合同会社 to Japan Display Inc. The amount of the receivables is Not disclosed, and the provision for doubtful accounts is ¥1,600 million

Company response

Suspended operations

Cessation of production at the Company’s Mobara Plant and cessation of production at the former Higashiura Plant

Event that occurred
ItemDetails
Event nameNotice Regarding the Recording of Non-Operating Income, Non-Operating Expenses, Extraordinary Income and Extraordinary Losses
Date of occurrenceFourth-quarter accounting period of the fiscal year ending March 2026 (specific date: Not disclosed)
Subject EntityJapan Display Inc. (reporting company) and its consolidated subsidiary, JDI Design and Development 合同会社
Target Locations / ProductsMobara Plant, former Higashiura Plant, assets related to the display business, and investment securities held by the Company’s group
CauseDisposal of raw materials that were no longer needed following the cessation of production at the Mobara Plant; interest on short-term borrowings and other liabilities; recognition of losses based on the financial condition of investees; a decline in the recoverability of receivables due to the deterioration in the financial condition of JDI Design and Development 合同会社; completion of the settlement of estimated costs associated with the cessation of production at the former Higashiura Plant; assessment of the near-term profitability of assets related to the display business; refinement of cost estimates associated with the cessation of production at the Mobara Plant; and impairment of shares whose real value had declined significantly
Amount of Impact on Business PerformanceFourth quarter: gain on sale of raw materials of ¥62 million (non-operating income, consolidated and non-consolidated); interest expenses of ¥2,410 million (non-operating expenses, consolidated); valuation loss on investment securities of ¥3,212 million (non-operating expenses, consolidated); provision for doubtful accounts of ¥1,600 million (non-operating expenses, non-consolidated; eliminated in consolidation); other extraordinary income of ¥61 million (consolidated and non-consolidated); impairment losses of ¥1,228 million (consolidated) and ¥1,006 million (non-consolidated); reversal of business restructuring expenses of ¥1,851 million (consolidated) and ¥1,810 million (non-consolidated, reducing extraordinary losses); and other extraordinary losses of ¥39 million (consolidated and non-consolidated). Cumulative for the fiscal year ending March 2026: gain on sale of raw materials of ¥432 million; interest expenses of ¥8,733 million; valuation loss on investment securities of ¥3,284 million; impairment losses of ¥1,972 million (consolidated) and ¥1,649 million (non-consolidated); and business restructuring expenses of ¥9,423 million (consolidated) and ¥9,207 million (non-consolidated)
Accounting period in which recognizedFourth-quarter accounting period of the fiscal year ending March 2026 and the fiscal year ending March 2026
Impact on Earnings ForecastNo revision to the earnings forecast is stated. The above matters are reflected in the Consolidated Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP], announced today.
Amount of receivables at risk of non-collection or delayed collectionReceivables owed by JDI Design and Development 合同会社 to Japan Display Inc. The amount of the receivables is Not disclosed, and the provision for doubtful accounts is ¥1,600 million
Suspended operationsCessation of production at the Company’s Mobara Plant and cessation of production at the former Higashiura Plant
Items this document does not state (15)
Date recognized / date notice receivedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changeOutlookPlanned follow-up disclosure

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Company sold raw materials that were no longer needed following the cessation of production at the Mobara Plant; interest accrued on short-term borrowings and other liabilities; valuation losses were recognized based on the financial condition of investees; the recoverability of receivables declined due to the deterioration in the financial condition of JDI Design and Development 合同会社; provisions were reversed following completion of the settlement of costs associated with the cessation of production at the former Higashiura Plant; the near-term profitability of assets related to the display business was assessed; cost estimates associated with the cessation of production at the Mobara Plant were refined, with a reduction from the initial level expected; and shares whose real value had declined significantly were impaired.

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Notice Regarding the Recording of Non-Operating Income, Non-Operating Expenses, Extraordinary Income and Extraordinary Losses | Japan Display Inc. (6740) timely disclosure | Komori