Komori
Occurring Fact6740Japan Display Inc.Electric Appliances & Precision Instruments

Notice Regarding the Recording of Non-operating Expenses, Extraordinary Gains and Extraordinary Losses

In the second quarter of the fiscal year ending March 2027, the company recorded expenses and losses including interest expense and impairment losses, while also recording gains including a gain on the sale of the Tottori Plant. It also recorded a ¥300 million provision for litigation loss in connection with shareholder litigation concerning financial results for prior fiscal years.

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Recognition of non-operating expenses, extraordinary income and extraordinary loss

Subject Entity

株式会社ジャパンディスプレイ (filing company, standalone and consolidated financial statements)

Target Locations / Products

The company's Tottori Plant, the company's Mobara Plant, assets of the display business, and personnel in Japan and overseas

OccurrenceMultiple events: 24 August 2026 (completion of the handover of the land, buildings and other assets of the Tottori Plant) and 16 July 2020 (filing of the lawsuit). The dates on which the individual amounts were recorded are Not disclosed.
Litigation / administrative action16 July 2020
This disclosure11/12/2026
Cause

Interest on short-term borrowings and other liabilities; completion of the handover of the land, buildings and other assets of the Tottori Plant; the elimination of the need to provide for equipment removal costs and other expenses following execution of the transfer agreement for the Mobara Plant; assessment of the near-term profitability of certain assets in the display business; workforce reductions in Japan and overseas through the recruitment of voluntary retirees and other measures, together with additional costs associated with the transfer of the Tottori Plant; and calculation of the expected loss based on the progress of the litigation proceedings

Amount of Impact on Business Performance

Non-operating expense (interest expense): ¥1.905 billion; extraordinary gain (gain on sale of fixed assets): ¥509 million; extraordinary gain (reversal of provisions for business structure improvement expenses): ¥660 million; extraordinary loss (impairment loss): ¥352 million on a standalone basis and ¥280 million on a consolidated basis; extraordinary loss (business structure improvement expenses): ¥56 million on a standalone basis and ¥154 million on a consolidated basis; extraordinary loss (provision for litigation loss): ¥300 million

Accounting period in which recognized

Second quarter of the fiscal year ending March 2027 (the second quarter). Cumulative amounts are based on the interim consolidated and standalone financial results.

Impact on Earnings Forecast

Reflected in the "Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 [Japanese GAAP] (Consolidated)" published today.

Related procedures

Type

Damages lawsuit

Plaintiff

Shareholders

Defendant

株式会社ジャパンディスプレイ and its former directors

Event that occurred
ItemDetails
Event nameRecognition of non-operating expenses, extraordinary income and extraordinary loss
Date of occurrenceMultiple events: 24 August 2026 (completion of the handover of the land, buildings and other assets of the Tottori Plant) and 16 July 2020 (filing of the lawsuit). The dates on which the individual amounts were recorded are Not disclosed.
Subject Entity株式会社ジャパンディスプレイ (filing company, standalone and consolidated financial statements)
Target Locations / ProductsThe company's Tottori Plant, the company's Mobara Plant, assets of the display business, and personnel in Japan and overseas
CauseInterest on short-term borrowings and other liabilities; completion of the handover of the land, buildings and other assets of the Tottori Plant; the elimination of the need to provide for equipment removal costs and other expenses following execution of the transfer agreement for the Mobara Plant; assessment of the near-term profitability of certain assets in the display business; workforce reductions in Japan and overseas through the recruitment of voluntary retirees and other measures, together with additional costs associated with the transfer of the Tottori Plant; and calculation of the expected loss based on the progress of the litigation proceedings
Amount of Impact on Business PerformanceNon-operating expense (interest expense): ¥1.905 billion; extraordinary gain (gain on sale of fixed assets): ¥509 million; extraordinary gain (reversal of provisions for business structure improvement expenses): ¥660 million; extraordinary loss (impairment loss): ¥352 million on a standalone basis and ¥280 million on a consolidated basis; extraordinary loss (business structure improvement expenses): ¥56 million on a standalone basis and ¥154 million on a consolidated basis; extraordinary loss (provision for litigation loss): ¥300 million
Accounting period in which recognizedSecond quarter of the fiscal year ending March 2027 (the second quarter). Cumulative amounts are based on the interim consolidated and standalone financial results.
Impact on Earnings ForecastReflected in the "Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 [Japanese GAAP] (Consolidated)" published today.
Type of litigation or proceedingDamages lawsuit
PlaintiffShareholders
Defendant株式会社ジャパンディスプレイ and its former directors
Date of filing / date of action16 July 2020
Items this document does not state (13)
Date recognized / date notice receivedCourt or authorityClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled 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.

Interest expense relates to interest on short-term borrowings and other liabilities. The gain on the sale of fixed assets resulted from completion of the handover of the land, buildings and other assets of the Tottori Plant. The reversal of provisions for business structure improvement expenses resulted from the execution of the transfer agreement for the Mobara Plant, which eliminated the need to provide for equipment removal costs and other expenses, among other factors. The impairment loss resulted from an assessment of the near-term profitability of certain assets in the display business. Business structure improvement expenses comprise workforce reduction costs in Japan and overseas, including the recruitment of voluntary retirees, and additional costs associated with the transfer of the Tottori Plant. The provision for litigation loss resulted from calculating the expected loss based on the progress of the litigation proceedings.

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