Lowering the break-even point, strengthening cash flow and changing corporate culture
First written in FY2016. 23 of 39 entries say "Advanced", first in FY2016. Latest entry: 2026-08-10.
Japan Display moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
8 other companies' latest entry also says "Other".
- FY2026Losses improved, but cash flow remained negative and profitability was not achievedAnnual report
「Cost reductions progressed through domestic and overseas workforce reductions, including voluntary early-retirement programs, lower personnel expenses from reduced bonuses for officers and employees, and lower plant expenses following the end of production at the Tottori and Mobara plants. EBITDA was negative ¥14,820 million, compared with negative ¥33,048 million in the previous fiscal year, and the operating loss was ¥18,692 million, compared with a loss of ¥37,068 million, meaning that the losses narrowed year on year.」
Workforce reductions, lower bonuses and lower plant expenses improved EBITDA and the operating loss, while cash flow from operating activities remained an outflow of ¥23,286 million. The Group had not achieved profitability or positive operating cash flow. - FY2026-H1Losses improved, but cash flow remained negative and profitability was not achievedAnnual report
「Although the Group reduced costs by reviewing research and development spending, lowering shipping expenses as shipments declined and reducing personnel expenses, the substantial decline in sales had a significant impact. EBITDA was negative ¥12,361 million, compared with negative ¥13,446 million in the previous year, and the operating loss was ¥14,432 million, compared with a loss of ¥15,481 million.」
EBITDA and the operating loss improved year on year through cost reductions, but both remained negative. Cash flow from operating activities was an outflow of ¥12,800 million, so cash-flow strengthening had not been achieved. - FY2025WorsenedAnnual report
「EBITDA, a cash earnings indicator, was negative ¥33,048 million, compared with negative ¥28,221 million in the previous fiscal year.」
Although the Group continued fixed-cost reductions and business-structure reforms, the EBITDA loss widened from the previous fiscal year. Cash flow from operating activities was also an outflow of ¥25,450 million, indicating no progress in strengthening earnings or cash flow. - FY2025-H1Losses improved, but operating cash flow deterioratedAnnual report
「In addition to reducing manufacturing fixed costs by cutting LCD panel production capacity at the Mobara Plant, the Group advanced its withdrawal from unprofitable businesses and products. As a result, EBITDA was negative ¥13,446 million, compared with negative ¥18,096 million in the previous interim consolidated accounting period, and the operating loss was ¥15,481 million, compared with a loss of ¥21,441 million, representing year-on-year improvement.」
Fixed-cost reductions and withdrawal from unprofitable businesses and products improved losses year on year. However, cash flow from operating activities was an outflow of ¥16,544 million, deteriorating from an outflow of ¥8,296 million in the same period of the previous year, so earnings improved while cash flow worsened. - FY2024WorsenedAnnual report
「The LCD business remains substantially loss-making because of the severe competitive environment and persistently high energy, materials and processing costs. Operating cash flow also remains negative, and we recognize that resolving these conditions quickly and improving performance is our most important management priority.」
Although fixed-cost reductions narrowed the operating loss from ¥44,386 million to ¥34,145 million, operating cash flow was an outflow of ¥17,576 million and EBITDA remained negative at ¥28,221 million. The Group identified a return to profitability and cash-flow improvement as its most important management priorities. - FY2024-Q3WorsenedAnnual report
「Although the weaker yen, productivity improvements, fixed-cost reductions and the return to profitability of the OLED business supported earnings, lower sales and higher materials, processing and energy costs resulted in EBITDA of negative ¥22,981 million, compared with negative ¥16,002 million in the previous year; an operating loss of ¥27,664 million, compared with a loss of ¥22,380 million; and an ordinary loss of ¥26,448 million, compared with a loss of ¥20,988 million.」
Productivity improvements and fixed-cost reductions had a positive effect, but could not offset lower sales and higher materials, processing and energy costs. EBITDA, the operating loss and the ordinary loss deteriorated year on year. - FY2024-Q2WorsenedAnnual report
「Fixed-cost reductions progressed more than expected as a result of suspending production at the Higashiura Plant and reducing smartphone LCD production capacity at the Mobara Plant, resulting in an upward deviation from the previous earnings forecast. However, lower sales and higher materials, processing and energy costs resulted in EBITDA of negative ¥18,096 million, compared with negative ¥7,485 million in the previous year, and an operating loss of ¥21,441 million, compared with a loss of ¥11,779 million.」
Fixed-cost reductions progressed more than expected, but lower sales and higher materials, processing and energy costs caused EBITDA and the operating loss to deteriorate year on year. - FY2024-Q1WorsenedAnnual report
「Although fixed-cost savings were achieved by suspending production at the Higashiura Plant and reducing smartphone LCD production capacity at the Mobara Plant, lower sales and higher materials and energy costs resulted in EBITDA of negative ¥12,165 million, compared with negative ¥4,711 million in the same period of the previous year, and an operating loss of ¥13,883 million, compared with a loss of ¥6,872 million.」
Fixed-cost savings from suspending production and reducing capacity were offset by lower sales and higher costs, causing EBITDA and the operating loss to deteriorate year on year. - FY2023WorsenedAnnual report
「In addition to lower sales, delays in passing higher materials, energy and transportation costs through to selling prices resulted in an operating loss of ¥44,386 million, compared with a loss of ¥8,576 million in the previous fiscal year, and an ordinary loss of ¥42,924 million, compared with a loss of ¥7,964 million.」
Although the Group pursued fixed-cost reductions and price pass-through, it could not offset lower sales and higher costs, and the operating and ordinary losses widened from the previous fiscal year. - FY2023-Q3WorsenedAnnual report
「Although the Group pursued cost reductions and benefited from the weaker yen, it was unable to offset the effects of lower sales and higher materials, energy and transportation costs. EBITDA was negative ¥16,002 million, compared with negative ¥3,688 million in the same period of the previous year, and operating profit was negative ¥22,380 million, compared with negative ¥10,117 million.」
Although the Group pursued cost reductions, it could not offset lower sales and higher costs, and EBITDA and the operating loss deteriorated year on year. The performance effects of measures to stabilize a profitable earnings structure had not yet fully emerged in the current third-quarter cumulative period. - FY2023-Q2RestatedAnnual report
「Although the Group pursued cost reductions and benefited from the weaker yen, it was unable to offset higher materials, energy and transportation costs. EBITDA was negative ¥7,485 million and the operating loss was ¥11,779 million, both worse year on year.」
The Group continued cost reductions and price pass-through efforts but could not fully offset higher materials, energy and transportation costs. EBITDA and the operating loss deteriorated year on year, while existing measures to stabilize a profitable earnings structure continued. - FY2023-Q1RestatedAnnual report
「To resolve this situation, the Group will continue to seek to stabilize a profitable earnings structure by reducing variable and fixed costs and improving its product portfolio, while also strengthening its finances and pursuing further business improvements.」
The Group reiterated its policy of stabilizing a profitable earnings structure through variable- and fixed-cost reductions, product-portfolio improvements and financial strengthening. No new achievement milestone was disclosed. - FY2022AdvancedAnnual report
「Against this backdrop, the Group set positive EBITDA in the fourth-quarter consolidated accounting period as its target for the current fiscal year. It worked to minimize the impact of semiconductor shortages on production, pursued further cost reductions and productivity improvements, and focused on setting appropriate prices for high-value-added products based on its technological expertise.」
The Group implemented cost reductions, productivity improvements and pricing for high-value-added products, resulting in positive EBITDA in the fourth quarter and full-year EBITDA of ¥161 million. - FY2022-Q3AdvancedAnnual report
「Although sales declined substantially, EBITDA improved by ¥4,123 million year on year to negative ¥3,688 million and the operating loss narrowed by ¥8,509 million to ¥10,117 million, as the break-even point improved significantly through a better product mix, cost reductions and price increases.」
Despite a 23.1% year-on-year decline in sales, improvements in product mix, cost reductions and price increases improved the break-even point, EBITDA by ¥4,123 million and the operating loss by ¥8,509 million. - FY2022-Q2AdvancedAnnual report
「Although sales declined substantially, EBITDA deteriorated by only ¥600 million year on year to negative ¥2,761 million, and the operating loss narrowed by ¥2,846 million to ¥7,033 million, as the break-even point improved significantly through a better product mix and cost reductions.」
Despite lower sales, the break-even point improved through a better product mix and cost reductions, narrowing the operating loss by ¥2,846 million year on year. EBITDA was negative ¥2,761 million, deteriorating by ¥600 million year on year. - FY2022-Q1AdvancedAnnual report
「We also continued thorough cost reductions with the goal of achieving positive EBITDA in the fourth-quarter consolidated accounting period, which was the target for the current fiscal year.」
The Group continued cost reductions and set positive EBITDA in the fourth quarter as a specific target for the current fiscal year. - FY2021-Q3AdvancedAnnual report
「Against this backdrop, the Group pursued further cost reductions and reduced fixed costs by approximately ¥25 billion compared with the first three quarters of the previous fiscal year. As part of these measures, the transfer of the Hakusan Plant in Hakusan, Ishikawa, whose operations had been suspended since July 2019, was completed on 1 October 2020, resulting in annual cost savings of approximately ¥8 billion going forward.」
The Group reported approximately ¥25 billion in year-on-year fixed-cost reductions and stated that the transfer of the Hakusan Plant would generate approximately ¥8 billion in annual cost savings going forward. - FY2021-Q2AdvancedAnnual report
「Although sales declined, manufacturing fixed costs, personnel expenses and other fixed costs were reduced through the structural reforms implemented since the first half of the previous fiscal year, and various expense-reduction measures were effective. As a result, gross profit improved by ¥21,319 million year on year and turned positive, while the operating loss improved by ¥25,290 million to ¥9,879 million.」
Structural reforms and expense reductions enabled gross profit to return to positive territory and improved the operating loss by ¥25,290 million year on year. Cash flow from operating activities also improved, with the outflow narrowing from ¥56,360 million to ¥13,563 million in the same period of the previous year. - FY2021-Q1AdvancedAnnual report
「Although operating losses continued because sales remained low, the fixed-cost savings from the structural reforms implemented in the first half of the previous fiscal year and other factors improved the result by ¥20,066 million year on year.」
Fixed-cost savings from the structural reforms and other factors improved the operating loss by ¥20,066 million year on year. The Group had not yet returned to profitability, but the effects of the reforms were reflected in quarterly results. - FY2020AdvancedAnnual report
「The effects of the structural reforms fully emerged in the second half of the current fiscal year, generating approximately ¥30 billion in fixed-cost savings for the full year. In the fiscal year ending March 2021, we expect to achieve an additional approximately ¥20 billion in annual fixed-cost savings.」
The Group reported measurable progress in fixed-cost reductions, with approximately ¥30 billion realized for the full year and a further approximately ¥20 billion expected in the fiscal year ending March 2021. - FY2020-Q3AdvancedAnnual report
「To address this situation, the Group implemented structural reforms, including a substantial workforce reduction equivalent to slightly more than 30% of its domestic employees, suspending operations at the Hakusan Plant, closing the V2 post-process line at the Mobara Plant, and recognizing impairment losses on smartphone production equipment, mainly operating assets at the Hakusan Plant, thereby reducing fixed costs.」
The Group stated that it had implemented structural reforms, including reducing its domestic workforce by slightly more than 30%, suspending operations at the Hakusan Plant, closing the Mobara Plant's V2 line and impairing smartphone production equipment. The fixed-cost savings began to emerge in the third quarter, although the cumulative operating loss widened. - FY2020-Q2WorsenedAnnual report
「Cash flow from operating activities during the first half of the current consolidated cumulative period was an outflow of ¥57,377 million, compared with an outflow of ¥31,015 million in the same period of the previous year.」
Although structural reforms were implemented, cash flow from operating activities deteriorated, with the outflow widening from ¥31,015 million in the same period of the previous year to ¥57,377 million. - FY2020-Q1AdvancedAnnual report
「The Group is seeking to improve earnings by rationalizing management through fundamental structural reforms, and is recording the associated costs as business-structure improvement costs.」
The Group recorded ¥51,693 million in business-structure improvement costs in connection with the structural reforms, including ¥51,372 million in impairment losses on property, plant and equipment and costs to remove equipment. - FY2019AdvancedAnnual report
「In the fiscal year ending March 2020, we will continue to improve our cost structure through further structural reforms and continue company-wide initiatives to strengthen cost competitiveness.」
In addition to the fixed-cost reductions from the previous year's structural reforms, the Group continued structural reforms and company-wide initiatives in the fiscal year ending March 2020 to further improve its cost structure. Cash flow from operating activities was an outflow of ¥6,142 million, so cash-flow strengthening remained an ongoing issue. - FY2019-Q3AdvancedAnnual report
「Although operating profit remained a loss because of the year-on-year decline in sales, the loss improved year on year owing in part to the results of the structural reforms implemented in the previous consolidated fiscal year, to ¥10,626 million, compared with an operating loss of ¥38,897 million in the same cumulative period of the previous year. However, the Group did not return to profitability.」
The operating loss narrowed from ¥38,897 million in the same period of the previous year to ¥10,626 million as a result of the structural reforms. However, the Group did not achieve profitability and was considering further structural reforms. - FY2019-Q2AdvancedAnnual report
「Although the scale of sales resulted in an operating loss, the loss improved year on year owing in part to the results of the structural reforms implemented in the previous consolidated fiscal year, to ¥14,475 million, compared with an operating loss of ¥26,806 million in the same cumulative period of the previous year.」
The Group stated that the operating loss narrowed from ¥26,806 million in the same period of the previous year to ¥14,475 million as a result of the structural reforms. Operating cash flow was an outflow of ¥31,015 million, so improving cash flow remained an ongoing issue. - FY2019-Q1AdvancedAnnual report
「Although operating profit turned into an operating loss because of lower sales, the loss improved both year on year and quarter on quarter, to ¥9,806 million, owing in part to the results of the structural reforms implemented in the previous consolidated fiscal year. The operating loss was ¥14,442 million in the same quarter of the previous year and ¥22,851 million in the previous quarter.」
The Group attributed the reduction in operating loss from both the same period of the previous year and the previous quarter partly to the results of the structural reforms implemented in the previous fiscal year. - FY2018AdvancedAnnual report
「Through these measures, we expect to achieve annual fixed-cost savings of approximately ¥50 billion in the fiscal year ending March 2019, including ¥20 billion in non-cash depreciation expense, laying the foundation for improved performance.」
The structural reform progressed from implementation to a stage at which annual fixed-cost savings of approximately ¥50 billion were expected in the fiscal year ending March 2019. - FY2018-Q3AdvancedAnnual report
「The Group is working to improve cash flow by implementing financial measures to secure funding and stabilize cash management. It is also rationalizing management and improving future profitability through fundamental structural reforms, including reviewing its production structure, reducing fixed costs, selecting and withdrawing from businesses, and rebuilding its organizational structure, with the aim of becoming a more flexible and financially robust company.」
The Group stated that its structural reforms had progressed from the decision stage in the previous quarter to implementation, including stabilizing cash management, reviewing its production structure, reducing fixed costs, selecting and withdrawing from businesses, and rebuilding its organization. - FY2018-Q2AdvancedAnnual report
「To achieve a recovery in performance from the following fiscal year onward, the Group formulated and announced a medium-term management plan on 9 August 2017. Under this plan, it decided to implement fundamental structural reforms, including closing production lines, recording impairment losses on operating and idle assets, reducing headcount and reorganizing subsidiaries, in order to substantially reduce fixed costs. In connection with these business-structure reforms, the Group expects to record approximately ¥170 billion in business-structure improvement expenses as extraordinary losses in the current consolidated fiscal year. Through these reforms, together with company-wide efforts to reduce variable costs and enhance the value of its products, the Group aims to move away from its historically high-cost structure.」
The Group formulated and disclosed a medium-term management plan and decided to implement fundamental structural reforms, including production-line closures, asset impairments, workforce reductions and subsidiary reorganizations. It also specified approximately ¥170 billion in business-structure improvement expenses, variable-cost reductions and higher-value-added products. - FY2018-Q1AdvancedAnnual report
「With respect to inventories held at multiple domestic and overseas sites, we are considering monetizing or disposing of inventories in order to strengthen our financial position in line with the medium-term management plan.」
The Group described the specific measures of monetizing and disposing of inventories to improve cash flow and strengthen its financial position. The broader structural reform also included reducing production capacity, cutting fixed costs, consolidating sites, recording impairment losses and reducing headcount. - FY2017AdvancedAnnual report
「As a result, we were able to make progress in lowering the breakeven point. These initiatives will continue from fiscal 2017 onward.」
The Group stated that it had continued its management-reform project, cash-flow improvement and mindset-change initiatives, and had made progress in lowering the breakeven point. - FY2017-Q2AdvancedAnnual report
「Cash generated by operating activities during the first half of the current consolidated cumulative period was ¥106,141 million, compared with ¥13,103 million in the same period of the previous year.」
Cash flow from operating activities increased from ¥13,103 million to ¥106,141 million year on year. The disclosure cited increases in trade payables and advances received as major factors, but did not establish a direct causal link to the structural-reform measures. - FY2016AdvancedAnnual report
「These initiatives generated ¥29.5 billion in reform benefits in fiscal 2015 and improved the breakeven operating rate from 89.5% to 64.5%.」
The Group quantified the benefits of its initiatives in fiscal 2015, including yield improvements, cost reductions, faster collection of trade receivables and organizational changes, as well as the improvement in the breakeven operating rate.