Developing and commercializing new businesses

「Specifically, the company aims to restructure its product and business portfolio through its sensor business, which includes life-science sensors such as X-ray sensors, IoT sensors including “ZINNSIA,” and industrial sensors, as well as an advanced semiconductor packaging business that utilises technologies and assets developed through its display business.」

「In November 2024, our group launched the BEYOND DISPLAY strategy aimed at an early return to profitability and sustainable growth, and decided to enter the advanced semiconductor packaging business, which is expected to achieve high growth, while allocating additional management resources to the sensor business.」

「In addition, amid efforts to avoid the geopolitical risks described above, the company secured orders and inquiries for new businesses.」

「In May 2023, the company entered into a business transfer agreement to acquire from JOLED a technology development business relating to OLED displays, including employees and intellectual property rights, and completed the business acquisition in July of the same year.」

「As stated in the notes to the financial statements under significant subsequent events, a subsidiary of the Company acquired the technology development business related to OLED displays, a portion of JOLED's business. For the purpose of contributing to the expansion and acceleration of METAGROWTH 2026, the Company entered into a business transfer agreement among 3 parties, including the Company, dated 31 May 2023, and completed the transaction on 18 July of the same year.」

「The company identified six growth drivers based on proprietary technologies that are "world firsts and world's best," and worked to strengthen these growth fields.」

「In addition to these measures, the company formulated and announced on 13 May 2022 its growth strategy, METAGROWTH 2026, based on its management policy for the next 5 years, in order to further strengthen and advance the commercialisation and expanded sales of high-value-added technologies and strategic investment in new businesses aimed at creating a foundation for growth.」

「The company's principal business strategies under this growth strategy are to reorganize its product and business portfolio around backplane technologies such as OLED, including the ultra-high-mobility oxide semiconductor announced externally on 30 March of that year, and LTPS, as well as high-value-added device products in the automotive, VR and communications fields and the active use of related intellectual property rights, with the aim of promptly stabilizing a sustainably profitable business model and achieving business growth.」

「Against this backdrop, to achieve its target of turning EBITDA profitable in the fourth-quarter consolidated accounting period of the fiscal year, the Group worked to rebuild its existing businesses and thoroughly strengthen profitability. To improve earnings over the medium to long term, it focused on strengthening competitiveness and growing the business through establishing a new business model and commercializing high-value-added technologies.」

「The Company plans to restructure its product and business portfolio through capital investment targeting growth markets, backplane technologies such as LTPS and Advanced-LTPS, the commercialization of high-value-added device products based on common technology platforms in liquid crystal and OLED technologies, and the launch of new related software and ancillary services, with the aim of returning to profitability at an early stage and establishing stable profitability.」

「Revenue during the cumulative period increased 14.6% year on year, due to increased shipments of OLED displays for wearable devices and ultrahigh-definition liquid-crystal displays for VR devices, for which production began in the previous consolidated cumulative period.」

「The production constraints at the company’s Philippine backend-process subsidiary caused by the spread of COVID-19, which affected shipments in the first quarter, had been resolved by the end of the second quarter. Sales for the cumulative period increased 8.8% year on year, as shipments for notebook PCs and VR equipment increased despite lower shipments for digital cameras, and shipments of OLED displays also increased.」

「The company also aims to establish a sensor and solutions business as a pillar of future growth and will enter new business areas such as healthcare and security.」

「During the third quarter, the company started mass production of OLEDs for the first time, laying the groundwork for diversification into new business domains going forward.」

「On the business front, we have been working to achieve early improvements by combining our global supply chain management capabilities with our broad customer base, commercialising OLED displays manufactured using the evaporation method, and improving our cost structure.」

「In the non-mobile segment, which includes new business areas expected to generate future growth, the company will develop it into a third pillar through measures including entering the sensor market using its strength in LTPS technology and seeking to establish new positions beyond the display field.」

「In addition, to stabilize the management foundation, the company is considering accelerating the establishment of OLED mass-production technology, shifting management resources to growth areas and implementing further structural reforms.」

「In addition, to stabilise our management base, we will accelerate the establishment of mass-production technology for OLED and the shift of management resources to growth areas.」

「In addition, to stabilise our management base, we will accelerate the establishment of mass-production technology for OLED and the shift of management resources to growth areas.」

「For smartphones, the Group aims to increase value added through FULL ACTIVE™ and OLED displays manufactured using a vapor deposition process, while using the expected steady growth of the automotive market as its earnings base and strengthening new businesses expected to generate growth to develop them into a third pillar.」

「In addition to achieving the medium-term management policies of establishing mass-production technology for OLED and accelerating commercialization, and increasing management resources in growth businesses, the company aims to maximize profits from expected revenue opportunities in both the mobile and non-mobile fields from the next fiscal year onward by providing high-value-added products.」

「We will also achieve initiatives set out in our medium-term management policy, including "establishing and accelerating the commercialization of OLED mass-production technology" and "increasing management resources allocated to growth businesses," and aim to maximize profits from revenue opportunities expected in both the mobile and non-mobile fields from the next fiscal year onward.」

「Sales declined both year on year and from the previous quarter, partly because the company shifted its policy to focus on highly profitable new businesses.」

「The company undertook business-structure transformation centred on “expanding the automotive business,” “developing and commercialising new businesses,” and “expanding its technology portfolio.”」