Japan Display Inc. (6740) Earnings Call Transcript & Summary

Good day, everyone, and thank you for joining the call today for Japan Display Fiscal March '22 Earnings and the Growth Strategy. My name is Kumi Higuchi, Investor Relations Manager at JDI. Today, the speakers are Scott Callon, our Chairman and CEO; and Akihito Okochi, our CFO. Now Scott will start the presentation with an overview of the fiscal March '22. Scott-san, please.

Hi, everybody. Thanks so much for joining us today. This is a lot of material that I'll be going through with you. So please hang with me. I'll try to be efficient. So we have 2 presentations for you today. We announced after market close the results of our March 2022 fiscal year. I'll start with that. And then we're turning -- I'll turn to our growth strategy, METAGROWTH 2026. And both are reasonably long, so again, I'll try to be brief and allow time for Q&A without kind of skipping over the important matters. So let's start with the presentation, and the [ guy of ] the controls. Here we go. PersonalTech for a better world, okay. So here's the overview of the fiscal year that just ended. And let me start by positioning this, very, very tough operating environment, continues to have severe chip shortage impacts. And we do everything we can and have done it, and we kind of managed through it. But it was nonetheless despite all those challenges a very good year in terms of delivering within a severe operating environment, things that we needed to do. So profitability improved very substantially. We had a target to get to EBITDA positive. So cash flow -- cash earnings positive. By the fourth quarter, we hit that. We actually generated a full year positive EBITDA. So a lot of success in terms of ongoing business and the financial outcomes of what we're doing with this. The second bullet point, and I'll talk in some more detail on this later more fundamentally because this is about building this firm on a going-forward basis to be an incredibly powerful technology provider to the world. We have 2 massive breakthroughs. One is called HMO, high mobility oxide, ultra-low power consumption with the backplane technology. And the second one, we announced -- in HMO, we announced in March, eLEAP, which is maskless next-generation OLED technology. Both of these are historic breakthroughs. We announced eLEAP today. And so this is actually some materials that you can view if you'd like to look at that technology. We launched Rælclear, our transparent display technology with the world's highest transparency. We work to protect our IP on intellectual property, which we have a lot. We increased capital via Ichigo Trust. We transferred a Taiwan plant to our EMS partner because we think they were a better owner of it and increase our cost competitiveness. And we did a capital structure optimization to improve our financial position. So that's the overview. To repeat kind of what some of the goals were for the year are strengthen existing businesses and build new businesses. We accomplished both of these. I'm going to run forward because this is a lot of material. So yes, we had targets, we hit them. So let me give you some context on what the business looks like, a broad overview, and kind of looking at the 3 segments: Mobile, which is smartphones; Automotive; and the Non-Mobile, which as for is primarily wearables and metaverse VR devices. We used to call them VR devices, but they clearly have been -- become part of a large, potentially very powerful transformation, which is the metaverse. And we'll all figure out together how important that is for new forms of communication and community, but we have a very, very substantial presence in that area. But anyway, across the Mobile and Automotive and Non-Mobile sets, we have an expected and ongoing decrease in customers in smartphone. LCD sales, that the business that is effectively going away. We understand that. On the other hand, China and because the end is where it is, we have, without question, the most competitive G6. And G6 is the right mother glass size for serving the smartphone market, the most competitive G6 fab in the world right now in Mobile. And we intend to keep it that way. So we sold in a very cost competitive market, up substantially into China. So the LCD sales to U.S. and Europe down big, but everything else up. So China's smartphone up 19%; Automotive up 21%, despite all the challenges in the market. And Non-Mobile saw again VR and wearable up, both 27%. I've already mentioned on the R&D front that we successfully developed HMO and eLEAP, which are huge breakthroughs. Again, one announced in March; one announced today in May. These are both kind of once in a lifetime. I'll talk in some detail about the technology. So it's a huge statement and evidence of how we are very good at this. And the firm kind of lost its way with their own cost structure and the wrong approach to serving customers. And in part, what went wrong with us, if I can be super transparent about it because I think it's my job to be, is we were too slow. And both of these HMO and eLEAP are the first ever in the world. If you're going to be the first ever, you need to be fast. And so one of the things that's really transformative and powerful about these breakthroughs is that we've gotten there faster than anybody else, and we've gotten very fast at innovation and invention. In terms of the JDI-Wide, we've done all sorts of things to reduce supply chain impacts. We worked on defending our intellectual property. We talked about selling the Taiwan plant. And we've done a lot more on sustainability and decarbonization. In terms of earnings, you can see on the left-hand side, we did end up with a full year EBITDA despite a tiny, tiny bit positive, which is actually far by plan. So significant improvements year-on-year despite sales being down. If you look at the table below, it says including parts and materials shortage impact. So we actually took it very significantly on the chin. So [ JPY 22 billion ] improvement year-on-year if it hadn't been for an EBITDA, if it hadn't been for the shortages that we experienced. But we did a lot of work to minimize the shortages, but still, there was an ongoing impact. We would have been profitable on an OP basis if it hadn't been these one-offs. And I say one-offs because at some point, it's happening -- it's beginning to happen at this point. But over the next 2 years, the semiconductor storage will go away. As you can see on the right-hand side of the page, a big drop-off in U.S. European mobile. That's the plan. We would love to have kept this business if we were highly profitable. It has become a commoditized business, the [ purchasing ] for us to be involved in product that kind of 5 or 6 or 7 other manufacturers can do. But as you can see, [indiscernible] category grew year-on-year. This is what looks like in terms of the waterfall of the improvements year-on-year relative to last year on -- in terms of OP. If you could see the other [ agents ], including inventory writings, I'm sorry, that's a little bit unclear language. It drop-off of inventory write-downs that we had last year -- so across the board, which reflects kind of substantial ongoing operating improvements in our profitability. You can see that on the left-hand side, and then we have the middle, we have the forecasts, and then we have the actual results, with substantial improvements year-on-year and substantial beating of the forecast. This is what we want to do. We put out forecasts that we believe are conservative, and we hit and beat them. You can see in the fourth quarter also, we had EBITDA profitability and OP profitability. It would have been nice if all things hadn't gone wrong in the world, and I will talk about what this forecast looks like, experiencing very severe impacts from the Shanghai lockdown and from impacts in Ukraine. And it is what it is. We will -- we run forward. There's a clear path and ongoing improvements in the fundamental profitability of the business. And at some point, we expect it to be profitable this year. On an OP basis, it's not happening because -- particularly because of what's going on in Shanghai, but also because of the driving up in commodity prices, so input prices because of Ukraine. And we're just going to work our way through it. So here's the forecast. Again, we thought we were going to turn to not only EBITDA profitability, but OP profitability this year. That's not in the cards. As you can see, Q1 is horrendous. What's going on right now, and we have substantial nexus with partners and suppliers and our own factory right near Shanghai, I mean this really has been a paralysis of production. We're beginning to ease our way out of it. But Q1 is just horrendous beyond belief because that's the reality. And then you can see we have improvements throughout the year. We will turn back to EBITDA profitability we expect in Q3 and Q4. And there is, of course, a risk factor around things staying worse for longer. The only upside to that is -- so either the challenges that are going on in China, the challenges that are going on with global input prices, they ease, or they don't ease, and we have an opportunity to go to our customers and say, this has been a fundamental structural change in pricing, and we need to pass it on to you. So we do think we work our way out of the current situation. So -- but it's rough. And then it's something that is being experienced by manufacturers all over the world right now. That's what I have in terms of the corporate presentation. I'm going to turn next to what we think our future looks like, which is our growth strategy. And let me [indiscernible] for us to change the presentation. Okay. Let me talk about the going forward, which we've called METAGROWTH 2026. So this is a 5-year growth strategy. We took the word Meta because it means comprehensive and overarching. It means big. And we attach it to growth to underscore our commitment to transformational growth. We think there is -- and I'll go into some detail on this, but we think we are without question have retaken our position as a global technology leader in a business that's all about technology and we have every opportunity, and we expect to deliver it to you in terms of transformational growth. The other thing, it's also obvious that's on the page, is that Meta in the minds of many as of last year, kind of creates a sense of the metaverse. And we are the dominant provider of hardware in the metaverse space. And so the metaverse is also a growth driver for us. So you get METAGROWTH not only because of the ongoing broad set of opportunities for us to drive growth for you across the board, but also specifically in the metaverse context. Four elements of today's presentation, which goes through the growth strategy; one, core strategy; two, the actions we took to drive structural profitability in the last 2 years; financial targets and KPIs; and then our 6 proprietary growth drivers. So let's go to it. Here's our core strategy. We expect to be the global #1 in technology leadership to best serve customers and deliver PersonalTech for a better world. And we are going to drive METAGROWTH in value creation. There are 3 elements there that are really important. The first one is we expect to be, and we are and expect to be on an ongoing basis, and that's our deliverable, to be the premier technology provider in displays in the world. The second element is we exist, and we think companies exist to serve society. And so the goal of having technology leadership is to best serve customers and deliver PersonalTech for a better world. And the third element is we think the combination of those 2 things, so creating outstanding customer and social value through technology leadership would allow us to drive very substantial value creation. There are 3 operating elements to the strategy, and I'll talk about each of them on the pages that follow. But it's worth kind of pointing out what we think our position is, where we are in the world. And that is, we are a display company. And the good news is that displays are a foundation of technology for modern society. So we are -- we deliver an incredibly important technology for people who live. And all of you on the call, just like me, I suppose, use display in a fairly substantial way for your lives. And so we -- so that's a good news. We're involved in a space that is really important and creates huge value. And the second element is that we have unmatched technology capabilities. And we're going to deliver our customer and social value and improve people's lives. Let me go through the 3 sub-elements of the strategy. One is global #1 technology leadership. I mentioned earlier, we announced today eLEAP, our next-generation OLED technology. In March, we announced HMO, high mobility oxide. I'll talk a little bit about each of these technologies. Those are #1 in the world technologies. No one has gotten -- has generated this technology ever. In the metaverse, we are #1 in the world with -- we're the only company that is capable of shipping 1,200 ppi and more ultra-high-resolution displays. So we literally have 100% market share. Our Rælclear technology, and as you can see, this is the first time that this Rælclear is on the page. If you look at, it's transparent displays, and we're #1 in the world in this also. Starting with the [ C ] going right, it is clear. And if you're actually starting with [ C ] and go left, it also says clear. And it's a way of saying unlike most displays, which block view, that you can actually have clarity from both sides anyway. So that's why we call it Rælclear. And so to be clear, we don't think this is a -- we expect to do this. We think we have evidenced that we truly are a global technology leader. We have regained our technology leadership. And we're going to drive this really hard to create customer and shareholder value. The second key element is -- based on this market-leading technology is transformational growth. So it's a worthy question. So you're going to be a technology leader, how valuable is that? And the answer is, we think incredibly valuable. In fact, it is the most essential element of what we do. The display business is a technology industry. We are a technology company. Our customers are technology companies. Our customers’ needs [ as technology companies ] is technology, superior technology and high cost performance. And we think those 2 run in hand, right? So you can't claim you have the best technology if you don't have the best cost performance. So it really is incumbent on us to deliver the single best high-cost performance technology to our customers. And in doing so, we can support our customers' own value creation and their competitive advantage. So key elements to what we're doing is to drive our market-leading technology and do it in a way -- and the third bullet point points out, without participating in commodity competition because we have -- we're the only guys with this technology. That's what global #1 means. It means as an example of eLEAP or HMO or the examples I gave earlier in terms of the metaverse space, we're the only folks who have this technology. And that's what makes it valuable. It's not enough for a company to have great products. I mean having great products is, of course, super important. But that's a necessary but insufficient condition in order to be truly profitable. You need to have great products or services that no one else can produce because that's -- if you have great products and 5 other firms have the exact same great products, and then there's actually no real value creation. So we're focused on using our technology for transformational growth. The third linchpin of the strategy is GreenTech and sustainability. There is no question that there are deeply important global environmental issues, and we have the ability to address them. And I'll talk a little bit about kind of some of the elements of eLEAP and HMO, for example. They're extraordinarily energy-efficient and they enable us to deliver significant value to our customers. And our customers really care about this. So increasingly, they're looking hard at their supply chain that we're part of, are we doing the right things for the world? I already pointed out earlier, we believe customers -- companies exist to serve society. And we're always going to run our business to contribute to a sustainable world. And the final thing I'd point out is the desire to be globally #1 and to continue to deliver on that, we think is right, not only for all of our external stakeholders, but we think is an important deliverable to our employees. So we are committed to support the growth of each and every employee in a joint pursuit of global #1 excellence. I'll just go through this really quickly. This is stuff we've done before. The stuff meaning it's something I've explained before. There is a lot of hard work to deliver the firm to the position it is today where we can really go hard for growth. And so across the board, financial, structural, product mix technology, we've taken significant actions over the last couple of years to get us to the point of structural profitability. You can see, for example, on this page all the improvements that have occurred over the last 2 years. And very specifically, for example, we took down our fixed costs by 21% over a 2-year period. We took our breakeven point down by JPY 260 billion. So that's down about 40%. What's important about that is not only is it defensive, meaning if you have a lower breakeven point, then you don't have many problems when the market goes down, meaning kind of sales decrease. It is also, if I can put it this way, an offensive strategy for us, meaning the great thing about having a low breakeven point is when you drive sales higher and we're going on to do that. It means you have this hockey stick effect from operating leverage increasing your profitability. So this is really, really important. The final thing that we've worked on, and I touched on this earlier, we had a fundamental flaw in the business, which was overreliance on a single customer and product set and smartphones, which was a really weak basis in order to build the firm. And so it's not exactly the case. We love having lost all these sales in the mobile space. I think it became commoditized and the market moved away from our technology set. But the result of it is, you end up with a much, much more stable business and [ a profitable ] product portfolio. The final thing that we're working on, and this is an ongoing quest to be a better company and to serve a better world, is delivering more on ESG. In the last year, we signed the United Nations Global Compact. We announced our participation in Apple’s Supplier Clean Energy Program, committing to 100% renewable energy. So there's ongoing work there and we'll continue to strengthen that activity. Let me turn to the financial targets, the KPIs for the 5-year growth plan. One of the things you can see, and it's on the top of the page, is a focus on driving profitable growth and focusing on high-margin businesses where we have competitive advantages, which is the way of saying, the sales target, which looks like it's got a certain amount of growth in it, from about JPY 295 billion to JPY 473 billion, that's a lot lower than we used to be. This is a firm that at one point, we had sales of over JPY 1 trillion. And it's not that we'll be fine to have sales of JPY 1 trillion. But the focus is not trying to grow sales. The focus is growing profitability. And the problem with our previous kind of high sales activity was high sales activity in commodity products with low margins. And so what is truly transformational about what's going to happen, and I'll talk about this on some pages to follow, it's not the growth in sales, but the shifting out of low-margin commodity products into proprietary, you can only buy this from JDI products, which means you get this utter radical transformational change in profitability. So we see ourselves getting to JPY 100 billion EBITDA profitability within 5 years and OP profitability of JPY 80 billion in the same period. We're trying to give opportunity to all of our stakeholders, including our shareholders, of course, to monitor us. I mean, so a high degree of transparency, we think is important in the world. And so we have chosen to show individual year-by-year targets. It just makes it easier for you to understand. Okay, you said you're going to do this. And are you on track or not on track, rather than saying 5 years from now, we're going to be here. And so this is what the path we see. This year, as I said earlier, is ugly, and it's ugly [ overall ] because of one-offs. If it hadn't been for the lockdown and kind of this radical surge in pricing and all sorts of things, including, for example, air shipment costs, we would have been profitable on an OP basis this year, and it is what it is. We'll just run forward. But next -- going into next year, we get a drop off of these costs. We get -- 3 factors are pretty visible. The drop-off, as I said earlier, is either the cost [indiscernible] we pass across, we have some time to pass costs onto our customers. Two, we understand already what our product mix looks like because we have already contracts in place to deliver products to customers with higher margins. So we're going to get higher profitability from our product mix. And the third is we announced this week, the [indiscernible] production at one of our fabs in Japan. And so there's a very substantial decrease in our fixed costs that come from that. So we have a lot of confidence in the improvement in these numbers year-on-year. I mentioned earlier that we have overreliance on smartphones. You can see on the left-hand side, the gray shape and the gray graph is what we were doing in the smartphone space. So we pushed that down because it's become a commoditized market and replaced it with JDI global #1 technology, AutoTech, and metaverse, OLED and transparent displays. So let me step through the 6 proprietary growth drivers, and [ this point, I think I'm ] going to speed up. Not because this is not important. It's absolutely fundamental, but I am aware of that I'm talking at length, and I'm happy to turn to Q&A. We decided to give you more detail and more substance rather than less, but I don't know [ that you ] need to be talking to you for 1.5 hours. And quite honestly, each one of these categories could support -- each one of the 6 proprietary drivers could probably support 30 minutes or more. But anyway, the 6 are, on this page, eLEAP, our next-gen OLED; HMO; and metaverse. On the next page, AutoTech and Rælclear and New Tech. What's important to understand is all of these, we're global #1 in these technology spaces. And so this is not -- we think we have something that's interesting and other companies also have it. This is literally if you want to get this technology, if you want, for example, eLEAP's high brightness, long life and high resolution supporting kind of a massive set of use cases. We're literally only the company in the world that is able to provide it. And now I will touch on AutoTech, Rælclear and New Tech's products and business. So eLEAP, we announced today, and it's absolutely historic. I mentioned earlier, both eLEAP and HMO are kind of once-in-a-lifetime technology breakthroughs. And what's so extraordinary about eLEAP is its lithography with maskless deposition and hopefully, I'm not going to take us in the weeds. And unfortunately, I'm not nearly technically sufficient in the manufacturing process to take it too much in the weeds. But everything in the world today in -- is in OLED's using maskless deposition, so it's fine metal masks. And so the use of fine metal masks has just become kind of a standard. And so to actually do something maskless, where you can take out this structural element is extraordinarily important. And it has some elements in terms of the imprecision created. This is semiconductor technology, just to be clear. The whole world cares a lot about semiconductors. And you have semiconductors used for compute engines and you also have semiconductors used for visualization engines. And we are a visualization engine semiconductor company. So taking out these kind of the structural elements of fine metal mask means you can do massive changes in terms of the precision of the manufacturing. It means we can increase brightness 2x. We can increase lifetime by 3x. It allows you to use free shapes that are just kind of completely unimaginable these days. There's a reason why kind of TVs and smartphones are square because that's what masks are. And so you take away the mask, you can do clouds. You can do frogs, you can do giraffes. You can do -- and I'm not just joking. You can do kind of in the auto space, you can have coverture and make things the exact right size as it would be without having to be square. So it's just really, really important and innovative and exciting. On the right-hand side, you can see the -- and the driver of both the high brightness and the long lifetime is because you have substantially higher emission efficiency and aperture ratios. It means that you can run about half the electrical current through. And so you can [ now get ] high brightness. You can also get lower power consumption. Long lifetime comes from the fact that you're not burning the OLEDs with the high current. And so as you can see in the page, you have to say a massive improvement in performance over time. This has always been and continues to be a problem with OLED technology, that it burns out. And we have a solution for it. The other thing we would point out is that eLEAP dominates all current OLED technologies. The issues that conventional OLEDs have means that they're kind of -- they're in a smaller market space. We can actually -- we can go at the much higher resolution. That's an element of our maskless eLEAP technology. We can go at much higher sizes. It's just an extraordinary and historic breakthrough. And to be clear, this is not our opinion. I mean, we have worked on this technology for years. We announced it today. We have had very robust discussions with key -- the best clients, the best customers in the world. We have technology agreements in place with them to talk about how we're going to take this forward. This is just really kind of mind-blowing, fantastic, magic. And that's what we exist for. We believe in magic, too. The other thing I would point out is this is an extraordinary environment, positive technology. The problem with mask is that they gunk up the production process. We have -- you have evaporation changers and deposition. You need to clean them regularly with toxic chemicals, the environment impact is -- it's very substantial. You have to be very careful about that in terms of avoiding ground water pollution, which, of course, we do. But this is nontrivial in terms of negative potential impacts from using these chemicals. We completely get rid of it. In addition to that, it's a far more efficient process so we can cut CO2 emissions. We have an example on the page, just using our factory in Mobara, our G6 plant in Chiba. And if we -- when we introduce this process there, we will decrease CO2 emissions by 150,000 tons per year. That's about 900,000 cedar trees or 3,700 Tokyo Domes. We'd like to talk about Tokyo Dome in Japan as an example of size. Let me turn to HMO, which is another very big technology breakthrough. I understand you've been patient listeners, so I'll run forward. This page shows the biggest deliverable from the technology. Again, this is go everywhere. HMO technology improves existing oxides with 4x higher mobility. It means you get much higher resolution, speed and performance. And you also get 40% lower power consumption. It's truly phenomenal. And it also is able to go to scale. This is a technology that is able to scale to larger screen sizes. The current kind of best-in-class technology, LCD technology is LTPS, which is used broadly in the world for high-end products, such as smartphones. The LTPS won't go above G6, and HMO will go up to -- will go beyond the G8 and G10 and at a substantial lower cost. So this is, again, technology is about changing the world with higher cost performance through the magic of human mind, intuition, invention and innovation. And so this is a breakthrough that allows us to have higher performance at lower cost. Turning to metaverse. Again, we dominate this space, and I will run forward. Here is our technology road map. We are -- as you can see VR -- so this is primarily virtual reality headsets in the metaverse space right now. We are global #1 in terms of image quality. We're the only company that is shipping 1,201 ppi displays. We expect -- this all based on glass substrates. So there is a path to high resolution to silicon, which is incredibly expensive, like literally 5x to 10x more expensive. So again, the focus is delivering extraordinary capability at the lowest possible cost. We expect to get 2,000 ppi within 3 years. This is a market that's growing very fast. It's, in fact, probably going to grow much, much faster. If there's a metaverse kick to it relative to what we show on the left-hand side of the page, you can see we have 40% market share. We continue to grow it. I would point out, as it is pointed out, we actually have 100% market share. And 1,200 ppi and more and the entire market is moving there. And so we expect to grow our share very substantially going forward. Turning to AutoTech, and this is a lot here, so I'm going to run forward with you. There's a lot going on. HUD is acronym for heads up displays. We are global #1 in this. It is a -- and I should probably go back -- actually, it's not on the page right here. I talked about it earlier. I'm going back. The advantage of a head-up display is it's a substantial increase in safety. It's actually on this page, in road and passenger safety. Because you don't have to look down at the console, it actually puts it on the windshield in front of you. And so it substantially decreases accidents. We're #1 in this technology space. We expect to continue to drive it going forward. eLEAP is a major technology breakthrough. The truth of matter is that OLED has become kind of the dominant high-end technology for smartphones. It is not succeeding getting into the auto space. I told you earlier that one of the problems with OLED is that it doesn't have strong durability, and auto manufacturers really, really care about durability. And so we solved that problem, as I said earlier, with 3x and lifetime capability. And so this is something that is really very well targeted for auto technology, and it's going to be a growth driver for us. I'd point out that the auto business is -- continues to be a growth business. We're seeing growth in both -- and the number of cars sold globally. We're seeing particularly growth in EVs, of course. And again, our technology is very well matched that because we have EVs run on batteries. And they really, really care about energy consumption. We have the single best low energy and high-performance technology set of any display provider in the world. And so we've got -- but anyway, the growth scenario comes from, one, number of cars being shipped globally continues to grow; 2, the number of displays within cars continues to grow; and 3, the size of the displays within cars continue to grow. So we've got these 3 growth factors punching forward for this to continue to be a good business for us. I already touched on Rælclear, our transparent displays. It's -- they have the world's highest transparency. And that just kind of creates all these kind of use cases. And so we're imagining with kind of our customers as to how we can use this. We show kind of our current 12-inch display technology. We're going to be shipping a 20-plus inch display within -- we expect within the next year. But this is literally, no one else has ever gotten to this. We have 84% transparency, which is effectively the same as window glass. No other manufacturer can get that. They can't get there in color. They're dark. They're black and white only. So it is truly is a [ virtual ] product. And the question is, how do we use it in brand new use cases that are important for customers? And so we've got kind of these demo kits all over kind of the best technology companies in the planet kind of looking at it. How can we use this? And so we really think this is really powerful and very interesting. And the technology is really a material science technology, and it's not quite Coca-Cola with its recipe locked in a safe somewhere. But we're literally in about 4 people in the world and know what our recipe is for this. And we feel -- we have a great deal of understanding of how far ahead we are in, and we can keep our advantage. We expect this to be a big market, although this is actually far too small relative to what it could be. But we're trying to start with numbers that we think we look reasonably small, but it could be very, very big depending on the use case expansion. And then I will turn next to New Tech products and businesses. This is -- on this page is announced. So we've done -- we've introduced contactless hover sensors, which obviously [indiscernible] you don't even have to get a button. Given what's happening in public health right now, that's obviously a strong use case. On the right-hand side, we are #1 in the world in medical displays through our high brightness, ultra-high contract and something we continue to grow. On the left side of this page, also announced, we have deployed our LCD technology for ultra-high-speed, high-bandwidth next-gen telecom. And finally, not yet really announced, but we expect to get there fairly soon. We're doing quite a bit of work in biometric sensor technology that we think is really, really exciting. And that, I think -- thanks to all of you for your patient listening. It Is both our corporate presentation and our gross strategy presentation. Thank you so much. I'm happy now to take Q&A or any and all comments or feedback.

[Operator Instructions] Does anyone have any question?

Also offline, and I thank you very much for joining us. We've got a lot of very exciting deliverables, and we look forward to showing you our progress over time. So thank you, everybody. Have a very good day.

Thank you very much. If you come up with any questions later on, please contact us at Japan Display Investor Relations. Thank you very much.