Partnership negotiations to strengthen the financial base

「Approximately ¥14.4 billion was raised through the issuance of common shares accompanying いちご's partial exercise of the relevant stock acquisition rights on 13 May 2026 and 19 June 2026.」

「We entered into an additional capital alliance agreement with Ichigo concerning financing and, on 15 July of the same year, issued to Ichigo, through a third-party allotment, the 14th Series Stock Acquisition Rights for our common shares. The maximum total amount to be raised upon exercise is approximately ¥96.3 billion, subject to execution of the above agreement to transfer the subsidiary's shares and Ichigo's waiver of the 13th Series Stock Acquisition Rights.」

「As a result, borrowings from Ichigo Trust amounted to ¥59.5 billion.」

「Based on a resolution of the Board of Directors meeting held on 13 May 2024, the company entered into SHORT-TERM LOAN AGREEMENTs with Ichigo Trust dated 30 July, 29 August and 27 September 2024, and drew new borrowings. As a result, borrowings from Ichigo Trust amounted to ¥44.0 billion.」

「The company will continue to take timely and appropriate financing measures, including flexible borrowings in line with funding needs, a request for Ichigo Trust to exercise the 13th Series Stock Acquisition Rights, with a maximum total amount to be raised of approximately ¥173.4 billion, and the sale of low-efficiency assets and securitization of trade receivables and other assets.」

「Going forward, the company will continue to implement timely and appropriate financing measures, including flexible borrowing in line with funding needs, Ichigo's request to exercise the 13th Series Stock Acquisition Rights, with total proceeds of up to approximately ¥173.4 billion, the sale of low-efficiency assets and the securitization of trade receivables.」

「Pursuant to a resolution of the Board of Directors meeting held on 30 May 2023, the Company entered into a Short-term Loan Agreement with Ichigo Trust dated 31 May 2023 and 28 June 2023.」

「The company completed, on 22 March 2023, the payment and issuance procedures for its common shares issued to Ichigo, involving total funding of approximately ¥86.7 billion through an in-kind contribution of the remaining receivables after partial waiver, and its 13th series of stock acquisition rights for which the maximum total funding upon exercise was approximately ¥173.4 billion.」

「The company resolved to newly issue common shares to いちごトラスト by way of a private placement, for total proceeds of approximately ¥86.7 billion.」

「An overview of borrowings under this Short-Term Loan Agreement is provided below.」

「During the consolidated fiscal year under review, the Company raised approximately ¥36.0 billion in total through the issuance of Class E preferred shares associated with Ichigo Trust's partial exercise of the 12th series of stock acquisition rights.」

「Net cash provided by financing activities was ¥3,870 million, compared with ¥1,154 million provided in the corresponding cumulative period of the previous fiscal year. This was mainly due to ¥20,000 million of cash used to repay borrowings from INCJ, offset by ¥24,842 million of cash received from the issuance of shares upon the exercise of warrants by Ichigo Trust, among other factors.」

「The company received payment from Ichigo Trust, the allottee, following the partial exercise of the 12th Series Stock Acquisition Rights issued on 28 August 2020. As a result, during the cumulative second quarter consolidated accounting period, stated capital and the capital reserve each increased by ¥12,465 million. At the end of the second quarter consolidated accounting period, stated capital was ¥215,222 million and capital surplus was ¥114,461 million.」

「Number of newly issued share acquisition rights exercised this time (amount raised): 6 (¥16,620 million)」

「Resolutions were passed to issue, through a private placement to Ichigo Trust, Series D preferred shares of Japan Display Inc., hereinafter “Series D Preferred Shares,” for total proceeds of ¥5 billion, and the 12th Series Stock Acquisition Rights of Japan Display Inc., hereinafter “the Stock Acquisition Rights,” to acquire Series E preferred shares of Japan Display Inc., hereinafter “Series E Preferred Shares,” for maximum proceeds of ¥55.4 billion if exercised. The capital payment for the Series D Preferred Shares was completed on 28 August of the same year.」

「At a board meeting held on 21 July 2020, the company resolved to issue Series D preferred shares to Ichigo Trust through a third-party allotment and stock acquisition rights with Series E preferred shares as the underlying shares. On the same date, it entered into a capital alliance agreement with Ichigo Trust concerning additional funding.」

「At the extraordinary general meeting of shareholders held on 25 March 2020, resolutions were passed to implement the third-party allotment to Ichigo Trust and the third-party allotment of Class A preferred shares, and payment for both investments was completed on 26 March. The refinancing was also carried out on the same day, and completion of the senior loan amendment agreement resulted in a net reduction of approximately ¥148.3 billion in interest-bearing debt.」

「At a meeting of the Board of Directors held on 31 January 2020, the Company resolved to raise funds through a third-party allotment to Ichigo Trust (hereinafter, “Ichigo Trust”) consisting of the issuance of Class B preferred shares of Japan Display Inc. (hereinafter, “Class B Preferred Shares”), with total proceeds of ¥50.4 billion, and the issuance of the 11th Series Stock Acquisition Rights of Japan Display Inc. for the purpose of issuing Class C preferred shares of Japan Display Inc. (hereinafter, “Class C Preferred Shares”; together with the issuance of the Class B Preferred Shares, the “Ichigo Trust Third-Party Allotment”). On the same date, the Company entered into a capital and business alliance agreement with Ichigo Trust.」

「On 26 September 2019, the Company received notification from Harvest Tech that Harvest Tech Overseas Fund, which it had established, would withdraw from the prospective investors in Suwa because a material difference of views had arisen between Harvest Tech and Suwa regarding corporate governance.」

「The amount of funds to be raised through the issuance of the second series of convertible bonds with stock acquisition rights was reduced from "¥18 billion" to "¥8 billion," while the amount to be raised through the issuance of the third series was increased from "¥20 billion" to "¥30 billion."」

「The Company decided on 12 April 2019 to select the Suwa Consortium as its sponsor in order to promptly achieve improvements to its business, including securing working capital, normalizing cash flow, obtaining funds for future growth investments and securing net assets to ensure stable business continuity on the financial side, as well as improving the business by combining global supply chain management capabilities with a broad customer base, commercializing vapor-deposition OLED displays and improving the cost structure on the business side.」

「In addition, to strengthen its financial foundation, the Company continued alliance discussions with multiple potential partners in cooperation with INCJ, its largest shareholder, and is seeking an early agreement.」