My question was more about understanding why this setup is needed.
Can somebody help me out with this?
The display has eight pins, three to interface with the Arduino (or other MPU), two to power the LCD controller, and three more to power the actual display.
The interface consists of RST, SCL and SDA.
The LCD controller power uses VDD and VSS.
The display power uses VOUT, C1+ and C1-.
You must connect two external capacitors which are required for the display power supply. Most likely they are external because they are physically large (relatively speaking) and wouldn't easily fit on the pc board. Note that they will probably be polarized so make sure and connect them properly.
Don