AUO - AGM Information 2023 | FinancialReports.eu

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OTC Markets ： AUOTY

AUO Corporation

Meeting Minutes Of 2023 Annual General Shareholders’ Meeting

(Translation)

Time and date of the Meeting: May 26, 2023 at 9:30 A.M. (Local time) Venue of the Meeting: Meeting Room in AUO's Headquarters (No. 1, Li-Hsin Rd. 2, East Dist., Hsinchu Science Park, Hsinchu City)

Total shares represented by shareholders present: 5,286,602,782 shares (including 3,898,677,911 shares casted electronically and 3,318,000 shares casted by video conferencing)

Percentage of shares held by shareholders present: 68.94% of total outstanding shares

(The translated document is prepared in accordance with the Chinese version and is for reference only. In the event of any inconsistency between the English version and the Chinese version, the Chinese version shall prevail.)

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Resolution Notice

Dear Shareholders:

We are pleased to inform you that the following items were approved or acted as proposed at our 2023 Annual General Shareholders’ Meeting held on May 26, 2023.

Truly yours,

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AUO Corporation

2023 Annual General Shareholders’ Meeting Minutes

Time: 9:30 a.m., May 26, 2023

Place: Meeting Room in AUO's Headquarters

(No. 1, Li-Hsin Rd. 2, East Dist., Hsinchu Science Park, Hsinchu City)

Total AUO outstanding shares: 7,667,880,972 shares

Total shares represented by shareholders present in person or by proxy: 5,286,602,782 shares (including 3,898,677,911 shares casted electronically and 3,318,000 shares represented by video conferencing)

Percentage of shares held by shareholders present in person or by proxy: 68.94%

Directors present:

Shuang-Lang (Paul) Peng, Chairman, Chief Strategy Officer and convener of the Corporate Governance Committee

Frank Ko, Director, Chief Executive Officer and President

Yen-Hsueh Su, Independent Director, convener of the Audit Committee, member of the

Remuneration Committee and member of the Corporate Governance Committee

Chuang- Chuang Tsai, Director

Jang-Lin (John) Chen, Independent Director, member of the Audit Committee, member of the

Remuneration Committee and member of the Corporate Governance Committee

Chiu-Ling Lu, Independent Director, member of the Audit Committee and member of the Corporate Governance Committee

Cathy Han, Independent Director, member of the Audit Committee and member of the Corporate Governance Committee

Attendees: Chi-Lung Yu, Certified Public Accountant

Bo-Sen Von, Attorney

Chair: Shuang-Lang (Paul) Peng, Chairman

Recorder: Benjamin Tseng, Chief Financial Officer, Corporate Governance Officer and Secretary of the Board.

Commencement (The aggregate shareholding of the shareholders present in person or by proxy constituted a quorum. The Chair called the meeting to order.)
Chair’s Address (omitted)
Report Items
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(1) To report the business of 2022 (omitted)

Summary of Shareholders’ Statements ：

Shareholder Mr. Tao (Shareholder No. 00025475) asked questions about matters regarding the adaptability to environment and whether there is a plan to relocate the factories in China.

Shareholders who attended by video conferencing (Shareholder No. 01223231 and 01061417) asked questions about the management of operating costs and factories. Shareholder Ms. Lin (Shareholder No. 00815852) asked questions about matters regarding price increase of glass substrate.

The Chair explained and responded to the above statements made by the said shareholders.

(2) Audit Committee's Review Report and Communication between members of Audit Committee and head of Internal Audit (omitted)

Summary of Shareholders’ Statements ：

Shareholder Mr. Tao (Shareholder No. 00025475) asked questions about matters regarding sales return and discount.

The convener of Audit Committee appointed CFO to explained and responded to the above statements made by the said shareholder.

(3) To report the cash distribution from capital surplus (omitted)

Summary of Shareholders’ Statements ：

Shareholders who attended by video conferencing (Shareholder No. 01223231 and 01061417) asked questions about the shareholder return plan, production plan of Micro LED, and funding plan.

(4) To report the indirect investments in China in 2022 (omitted)

Summary of Shareholders’ Statements ：

Shareholder Mr. Tao (Shareholder No. 00025475) asked questions about matters regarding the competition and cooperation relationship with other companies in China and whether there is a plan to relocate the factories in China.

Shareholder Ms. Lin (Shareholder No. 00815852) asked questions about the shareholder return plan.

The Chair explained and responded to the above statements made by the said shareholders.

Recognition Items
To accept 2022 Business Report and Financial Statements (proposed by the Board)

Explanation:

(1) The 2022 Financial Statements were audited by the independent auditors, Yu, Chi-Lung and Yu, Wan-Yuan of KPMG.
(2) For the 2022 Business Report, Independent Auditors’ Report, and the 2022 Financial Statements, please refer to Attachments 1(pages 6-10) and 3-4 (pages 12-29).

Voting Results: 5,286,602,782 shares were represented at the time of voting (including

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3,898,677,911 shares casted electronically and 3,318,000 shares casted by video conferencing)

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% of the total represented at
Voting Result Voting rights
the time of voting
Votes in favor
4,860,572,727 91.94%
Votes against 8,514,118 0.16%
Votes invalid
0 0.00%
Votes abstained
417,515,937 7.90%
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RESOLVED, that the above proposal be and hereby was accepted as proposed.

Summary of Shareholders’ Statements ：

Shareholder Mr. Tao (Shareholder No. 00025475) asked questions about the finance structure in short, medium and long term.

The Chair explained and responded to the above statements made by the said shareholders.

To accept the proposal for the distribution of 2022 earnings (proposed by the Board)
Explanation: For the Proposal for 2022 Earnings Distribution, please refer to Attachment 5 (page 30).

Voting Results: 5,286,602,782 shares were represented at the time of voting (including 3,898,677,911 shares casted electronically and 3,318,000 shares casted by video conferencing)

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% of the total represented at
Voting Result Voting rights
the time of voting
Votes in favor
4,873,085,413 92.18%
Votes against 5,084,239 0.10%
Votes invalid
0 0.00%
Votes abstained
408,433,130 7.73%
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RESOLVED, that the above proposal be and hereby was accepted as proposed.

Discussion Items
To lift non-competition restrictions on board members (proposed by the Board)

Explanation:

(1) According to Article 209 of the Company Act, any Director conducting business for himself/herself/itself or on behalf of other people that is within the Company’s business scope, shall provide explanation for the essential contents of such conduct at the Shareholders’ Meeting, and obtain approval therefrom.
(2) List of non-competition restrictions proposed to be lifted in the 2023 annual shareholders’ meeting is as Attachment 6 (page 31).

Voting Results: 5,286,602,782 shares were represented at the time of voting (including

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3,898,677,911 shares casted electronically and 3,318,000 shares casted by video conferencing)

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% of the total represented at
Voting Result Voting rights
the time of voting
Votes in favor
4,743,495,238 89.73%
Votes against 10,691,488 0.20%
Votes invalid
0 0.00%
Votes abstained
532,416,056 10.07%
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RESOLVED, that the above proposal be and hereby was accepted as proposed.

Summary of Shareholders’ Statements ：

Shareholder Mr. Tao (Shareholder No. 00025475) suggested that the Company should have a statement from the directors who were proposed to be lifted from non-competition restrictions.

The Chair explained and responded to the above statements made by the said shareholders.

6. Extraordinary Motions

Summary of Shareholders’ Statements ：

Shareholder Mr. Lee (Shareholder No. 00070030) asked questions about the market development of Micro LED and automotive application.

Shareholder Mr. Tao (Shareholder No. 00025475) expressed opinions on other company’s management and suggested the Company should introduce diversified talent.

Shareholder who attended by video conferencing (Shareholder No. 01761043) asked questions about the calculation method of cash distribution from capital surplus and Shareholders' Meeting souvenirs next year.

The Chair explained and responded to the above statements made by the said shareholders.

There being no extraordinary motions, and the Chair announced the meeting was adjourned.

7. Meeting Adjourn

The meeting was adjourned at 11:42 a.m.

(Note 1: The content of the statement recorded in this meeting minutes is only a summary. The actual speech shall be subject to on-site video and audio recording.)

(Note 2: Because the percentage of approval votes, disapproval votes, invalid votes, abstention votes and no votes held by total votes is calculated rounded to the second decimal place, the total percentage might not be exactly equal to 100.00 %.)

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Attachment 1

2022 Business Report

Looking back at 2022, the Company’s operations faced severe challenges. Demand from the robust stay-at-home economy in the past two years gradually faded. Additionally, war, inflation and rising interest rates led to lackluster end-market demand and this, combined with high channel inventory, led to a sudden slump in panel demand from brand customers. As a result, the Company’s revenues were NT$246.79 billion in 2022, a decline of 33.4% year-over-year. The profitability also turned into a loss in 2022 from an all-time high in 2021, with a net loss attributable to owners of the Company of NT$21.10 billion and a basic loss per share of NT$2.39. In the face of severe challenges, the Company responded early by actively carrying out cash flow and capital expenditure controls to maintain a stable overall financial structure and accumulate sufficient resources to continue promoting the deployment of the biaxial transformation strategy. At the same time, we also strengthened the operational resilience of the organization to respond to challenges and uncertainties and accelerate the transformation process.

Taking the Energy Business as an example, long-term transformation and adjustments have brought about a growth in revenue in 2022 to NT$20.9 billion and an operating profit margin of 6.6%, which contributed to revenues and profits while Display Business suffered fluctuation. AUO’s accumulated strength from the deployment of biaxial transformation in recent years has gradually shown results. In 2022, AUO's non-panel revenue contributed over 10% of the total. In the future, we will accelerate the transformation by expanding non-panel revenue and increasing profitability, thereby reducing the cyclical impact from panel business on operations and making AUO's operations more stable.

AUO will accelerate the pace of biaxial transformation in the future, and the non-panel business will be the Company's future growth engine. Here is a complete description of the development direction and the specific results accumulated in the past several years:

 Advanced LED display technology:

AUO’s LED display business saw an important year of development in 2022 as the Company released a range of applications with LED backlights, as well as large-size LED displays, and high-end Micro LED transparent displays. In terms of LED display technology development, LED display controllers were also independently developed while improved display effects were obtained through AUO's display calibration technology. AUO’s LED displays also incorporate A.R.T.1 technology to create a clear distinction from traditional LED displays. In addition, AUO is actively integrating the LED-related R&D and production capabilities within the ecosystem of the Group conpanies, including those of Ennostar2, Raydium3, and PlayNitride4. We look forward to comprehensive future synergies as we combine them with AUO's own accumulated foundation in panel technology.

With respect to marketing, AUO has developed products in collaboration with the Company’s ecosystem partners. In addition to using LEDs to create the ultimate immersive smart studio, which makes the production process of the film and television industry more digitalized and efficient, we have

1 Advanced Reflection Technology

2 Ennostar Inc.

3 Raydium Semiconductor Corporation 4 PlayNitride Inc.

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also developed a spherical flight simulator and offered immersive games that gained quite positive market feedback and opened the way for application business opportunities in the Metaverse. In the commercial space and educational applications, AUO also provides high-quality LED displays in classrooms and conference rooms.

 Smart mobility

AUO's smart mobility deployment is centered on display technology, integrating and developing “vehicle-road-cloud” related display solutions. AUO currently stands as one of the world's top three automotive panel suppliers, mainly providing LCD display modules for passenger cars. In addition to offering integrated multi-screen all-in-one solutions in the future, we will also incorporate other automotive components such as lenses, touch panels, and mechanical components to gradually develop into FIDM+ (Fully Integrated Display Module Plus).

Regarding display technology development, AUO has introduced the current LCD panel into AmLED technology while also enlarging it to include touch technology to meet the needs of next-generation in-vehicle entertainment. In terms of future product planning, AUO will fully introduce Micro LED into the smart cockpit in multiple forms such as rollable, stretchable, and transparent applications. Meanwhile, as self-driving automobiles become a reality, we will create space that is more in line with daily needs using free-form display technology. We will also work with our customers to speed up commercialization of Micro LED free-form displays.

In smart mobility field applications, AUO has mobilized internal Group resources and teamed up with partners like Darwin5, ADLINK6, SINTRONES7, and CAROTA8. Together, we synchronize developing commercial fleet cockpit solutions (vehicle + cloud), charging stations, and solutions for various transportation applications. We will create more business opportunities in the field of smart transportation through such complementary cooperation.

 Smart healthcare

AUO Display Plus9, a subsidiary of AUO, focuses on medical field demand and smart healthcare trends with stable, reliable, high-quality, and high-efficiency comprehensive smart healthcare display solutions. Our focus is on smart operating rooms, detection and diagnosis, and integrated management of medical information. We shall expand 3D medical imaging and solutions such as telemedicine to actively assist medical staff in achieving accurate diagnosis and treatment. In 2022, AUO Display Plus won the appreciation of many customers in multiple exhibition venues and even won the Enterprise Innovation Award in the Smart Healthcare and Health Technology category of the 19th National Innovation Award. This was in recognition of our Wide-Viewing Angle 3D Medical Display, which demonstrated the innovation and value of AUO’s technology and products.

Since medical field applications are very specialized and fragmented, while product certification and quality requirements are quite strict, AUO Display Plus operates in the medical field by combining the

5 Darwin Precisions Corporation
6 ADLINK Technology Inc.
7 SINTRONES Technology Corp.
8 CAROTA Corporation
9 AUO Display Plus Corporation
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in-depth cultivation of experts in the field to bring forth its own display technology differentiation. We also complement and co-create with key partners to expand our fields and visibility, while working together to create more stable, safe, and efficient medical products and solutions. In 2022, AUO Display Plus was joined by several partners in the medical ecosystem to jointly demonstrate a number of innovative application solutions and medical display products in different fields. With partners including ADLINK, Cypress10, iMedtac11, and many others, we offered solutions and products such as 3D medical imaging, smart operating rooms, detection and diagnosis, and telemedicine. In the future, these solutions will be introduced to the global market.

 Smart retail

AUO’s smart retail development focus is to utilize digital technology software and hardware integration to assist physical retail locations in improving store sales. We carry out value-added transformation of products and services based on top of the business models of our subsidiaries ComQi12 and Space Money13.

ComQi takes existing content management service (CMS) as its core, and in the future will integrate the service into display screen hardware in the retail field (e.g., signage, kiosk, ESL, and EV charging). In doing so, it shall leverage AUO's strengths in hardware manufacturing to collaboratively develop related products and generate digital advertising marketing content, thereby creating greater spatial effects for customers in the field.

In 2022, Space Money undertook the deployment of an efficient cloud-based digital content public broadcast management system (WMS) for 4,000 stores under Taiwan's second largest convenience store operator. The customer could provide more consumer-centric services through all-channel integration of offline experiences with an online shopping guide. In the meantime, it also created considerable advertising benefits for advertisers. In the long term, Space Money will also develop the business model of a Digital Out of Home (DOOH) digital advertising push platform in the retail field, anticipating more diversified services and more stable income.

 Smart education and entertainment

In smart education and enterprise application development, AUO mainly provides display screen software and hardware solutions through AUO Display Plus while simultaneously cooperating with global ecosystem partners in a range of application fields to create business opportunities. In 2022, AUO Display Plus saw the overseas deployment of education display solutions by Jector14, a subsidiary of AUO Display Plus. Beyond this, AUO Display Plus also invested in Rise Vision15, a smart education content management system service provider in the United States. Such moves enhanced the completeness of AUO Display Plus’s smart education solutions. Meanwhile, for enterprise users, AUO Display Plus also introduced the Smart Pod Solution (a solution to create dedicated independent work and meeting spaces for business people in public places or office areas) and began selling it in key

10 Cypress Technology Co., Ltd.
11 iMedtac Co., Ltd.
12 ComQi Inc.
13 Space Money Inc.
14 Jector Digital Corporation
15 Rise Vision Incorporated, Rise Vision USA Inc.
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locations around the world. In the future, AUO Display Plus will continue to uphold the spirit of complementary cooperation and co-creation, and work with ecosystem partners to develop solutions that align with their values.

Smart manufacturing

In smart manufacturing, AUO through its subsidiary, AUO Digitech16, as a solution provider to assist in the industrial automation and intelligent upgrading of different industries and to provide one-stop services. Following its accumulated experiences in different industries, AUO Digitech further-advanced its business model in 2022. For example, AUO Digitech teamed up with Microsoft Azure to strengthen its flexibility in the development of various AI models and the utilization of resources through the Microsoft Azure service platform. It also sells its own smart manufacturing products globally through Azure. In terms of future development strategy, AUO Digitech’s business model will also gradually transform from the existing on-premises solution to a platform service model that includes co-creation with ecosystem partners, thereby facilitating further improvements in the conversion efficiency of operating resources.

Becoming an outstanding sustainable enterprise has always been the Company’s core goal. AUO has linked SDGs to 2025 CSR targets, thereby allowing ESG to develop in a balanced way. In 2022, AUO became a member of the RE100 global renewable energy initiative organization. Simultaneously, we were the first company in the global display manufacturing industry to commit to full use of renewable energy by 2050. In line with global carbon reduction trends, AUO has reduced carbon emissions gradually and targets towards a 2050 net zero goal in line with the world renowned Science-Based Targets (SBT). Furthermore, we call on our supply chain to work together on core capability of power savings, which is critical to carbon emission to achieve the goal of reducing carbon emissions by 20% by 2030. At the same time, we will work with brand customers to develop circular economy opportunities as we continue increasing the proportion of recycled materials used and develop low energy consumption products to meet the needs of green brand customers. Elsewhere, in regard to the promotion of corporate sustainability in 2022, AUO has been selected as a constituent company of the Dow Jones Sustainability World Index for the 13th consecutive year and has earned an MSCI ESG Rating of "A" and a CDP evaluation leadership level ranking. Furthermore, the Company continues to place in the top 5% of corporate governance evaluations by the Taiwan Stock Exchange Corporation. In terms of ESG appraisal, AUO has also demonstrated many outstanding performances and won several honors including recognition among “The Most Prestigious Sustainability Awards-Top Ten Domestic Corporate” by the Taiwan Corporate Sustainability Awards, earning a National Enterprise Environmental Protection Award, and was listed in the Bloomberg Gender-Equality Index.

Looking ahead to 2023, most economic forecasts point to very low growth or even recession. This indicates that the industry still faces many challenges and variables. In the future, the Company will focus on investing in the acceleration of our biaxial transformation and on value creation in our core competitiveness of display technology. Furthermore, we shall integrate the ecosystem we have built over the past few years and leverage the power of Group cooperation so that AUO is no longer seen only as a panel manufacturer

16 AUO Digitech Taiwan Inc.

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by the market. Rather, we shall stand out as a provider of smart field solutions. In addition to enabling the Company to operate more steadily and sustainably, this shall also create greater value for shareholders.

Chairman and Group CSO 17 CEO and President 17 Chief Financial Officer and Chief Accounting Officer

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17 On 23 February 2023, the Board of Directors of The Company approved the appointment of Mr. Shuang-Lang (Paul) Peng as the Group CSO and Frank Ko as the CEO and President with effect from 1 March 2023.

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Attachment 2:

Audit Committee’s Review Report

The Board of Directors has prepared the Company’s Business Report, Financial Statements, and Earnings Distribution Proposal for the year of 2022. Yu, Chi-Lung and Yu, Wan-Yuan, Certified Public Accountants of KPMG, have audited the Financial Statements. The 2022 Business Report, Financial Statements, and Earnings Distribution Proposal have been reviewed and determined to be correct and accurate by the Audit Committee of AUO Corporation. I, as the Chair of the Audit Committee, hereby submit this report according to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

AUO Corporation

Chair of the Audit Committee

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Yen-Hsueh Su

February 23, 2023

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Attachment 3:

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Independent Auditors’ Report

To the Board of Directors of AUO Corporation:

Opinion

We have audited the parent company only financial statements of AUO Corporation (formerly AU Optronics Corp., “the Company”), which comprise the balance sheets as of December 31, 2022 and 2021, the statements of comprehensive income, statements of changes in equity, and statements of cash flows for the years ended December 31, 2022 and 2021, and notes to the parent company only financial statements including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and its financial performance and its cash flows for each of the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the current period. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Impairment of long-term non-financial assets (including goodwill)

Refer to Note 4(15) “Impairment – non financial assets”, Note 5(1) and Note 5(2) “Critical Accounting Judgments and Key Sources of Estimations and Assumptions Uncertainty”, Note 6(8) “Property, Plant and Equipment”, Note 6(9) “Lease Arrangements” and Note 6(11) “Intangible Assets” to the parent company only financial statements.

Description of key audit matter:

The Company operates in an industry with high investment costs, has goodwill through the acquisition of subsidiaries, and may experience volatility in response to changes in the external market; hence, it is important to assess the impairment of its long-term non-financial assets (including goodwill). The impairment assessment includes identifying cash-generating units, determining a valuation model, determining significant assumptions, and computing recoverable amounts. With the complexity of the impairment assessment process and the involvement of significant management judgment regarding assumptions used, this is one of the key areas our audit focused on.

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How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included understanding and testing the Company’s controls surrounding the impairment assessment and testing process; assessing whether there are impairment indications for the identified cash-generating units of the Company and its related assets; understanding and assessing the appropriateness of the valuation model used by the management in the impairment assessment and the significant assumptions used to determine related assets’ future cash flows projection, useful lives, and weighted-average cost of capital; retrospectively reviewing the accuracy of assumptions used in prior-period estimates and performing a sensitivity analysis of key assumptions and results; in addition to the above audit procedures, appointing specialists to evaluate the appropriateness of the weighted-average cost of capital used and related assumptions; performing an inquiry of the management and identifying any event after the balance sheet date if able to affect the results of the impairment assessment; and assessing the adequacy of the Company’s disclosures of its policy on impairment of noncurrent non-financial assets and other related disclosures.

2. Revenue recognition

Refer to Note 4(18) “Revenue from contracts with customers” and Note 6(18) “Revenue from Contracts with Customers” to the parent company only financial statements.

Description of key audit matter:

Revenue is recognized when the control over a product has been transferred to the customer as specified in each individual contract with customers. The Company recognizes revenue depending on the various sales terms in each individual contract with customers to ensure the performance obligation has been satisfied by transferring control over a product to a customer. In addition, the Company operates in an industry in which revenue is considered to be complex in determining the timing of revenue recognition. Consequently, this is one of the key areas our audit focused on.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included understanding and testing the Company’s controls surrounding revenue recognition; assessing whether appropriate revenue recognition policies are applied through comparison with accounting standards and understanding the Company’s main revenue types, its related sales agreements, and sales terms; on a sample basis, inspecting contracts with customers or customers’ orders and assessing whether the accounting treatment of the related contracts (including sales terms) is applied appropriately; performing a test of details of sales revenue and understanding the rationale for any identified significant sales fluctuations and any significant reversals of revenue through sales discounts and sales returns which incurred within a certain period before or after the balance sheet date; and assessing the adequacy of the Company’s disclosures of its revenue recognition policy and other related disclosures.

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Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (inclusive of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identified and assessed the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Concluded on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluated the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtained sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identified during our audit.

We also provided those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicated with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Yu, Chi-Lung and Yu, Wan-Yuan.

KPMG

Hsinchu, Taiwan (Republic of China) February 8, 2023

Notes to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance, and cash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. The standards, procedures and practices to audit such parent company only financial statements are those generally accepted and applied in the Republic of China.

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AUO CORPORATION Balance Sheets December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

December 31,2022 Amount % $ 42,441,718 12 169,455 - - - 12,408,519 4 5,347,662 2 2,050,395 - 21,306 - 17,295,755 5 1,530,474 - 1,986,803 1	December 31,2022	December 31,2022	December 31,2021 Amount % 39,294 - 25,563,063 7 33,402,582 9 2,037,379 1 285,903 - 62,580 - 777,282 - 378,273 - 28,097,647 7 12,267,653 3
	Amount	%	Amount
	89,776 - 18,037,634 5 24,231,794 7 4,002,367 1 249,047 - 509,975 - 443,197 - 401,297 - 17,913,439 5 10,371,000 3
83,252,087 24
	76,249,526 21		102,911,656 27
85,362 - 124,210,952 35 118,164,834 33 7,810,704 2 465,868 - 9,464,184 3 5,656,311 2 2,850,401 1
	8,739,846 3 68,197,393 19 609,175 - 4,078,266 1 7,654,368 2 1,333,038 1		8,739,846 2 28,379,592 8 679,907 - 3,331,803 1 8,153,713 2 1,619,978 -
	90,612,086 26		50,904,839 13
	166,861,612 47		153,816,495 40
	76,993,961 22 61,942,210 18 50,078,752 14 (3,620,305) (1) (295,527) -		96,242,451 25 60,057,001 15 80,669,998 21 (4,743,182) (1) (439,228) -
268,708,616 76
$ 351,960,703 100
	185,099,091 53		231,787,040 60
	$ 351,960,703 100		385,603,535 100

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AUO CORPORATION Statements of Comprehensive Income For the years ended December 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)

2022	% 101 1	2021	% 101 1
Amount $ 217,686,089 2,515,723		Amount 333,453,625 2,223,070
215,170,366 225,776,767	100 105	331,230,555 260,307,149	100 79
(10,606,401)	(5)	70,923,406	21
3,029,807 4,631,479 10,129,375	1 2 5	3,540,549 6,357,095 10,093,084	1 2 3
17,790,661	8	19,990,728	6
(28,397,062)	(13)	50,932,678	15
386,558 862,214 (1,200,499) (1,127,843) 8,383,800	- - (1) - 4	159,594 565,952 (206,835) (1,447,159) 12,431,269	- - - - 4
7,304,230	3	11,502,821	4
(21,092,832) 8,542	(10) -	62,435,499 1,104,871	19 -
(21,101,374)	(10)	61,330,628	19
58,558 19,373 (1,324,473) (11,712)	- - (1) -	21,693 (25,518) 236,236 (4,664)	- - - -
(1,258,254)	(1)	227,747	-
7,463,944 (4,511,574) (485,287)	3 (2) -	(1,765,440) 523,293 328,538	(1) - -
2,467,083	1	(913,609)	(1)
1,208,829	-	(685,862)	(1)
$ (19,892,545)	(10)	60,644,766	18
$	(2.39)		6.44
$	(2.39)		6.26

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AUO CORPORATION Statements of Changes in Equity For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

Capital Stock	Capital Surplus 60,587,684	Legal Reserve 7,691,688	Retained	Earnings	Subtotal 30,258,282	Other Components of Equity Cumulative Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Translation Differences Comprehensive Income Subtotal (3,206,520) (63,783) (3,270,303)	Other Components of Equity Cumulative Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Translation Differences Comprehensive Income Subtotal (3,206,520) (63,783) (3,270,303)	Other Components of Equity Cumulative Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Translation Differences Comprehensive Income Subtotal (3,206,520) (63,783) (3,270,303)	Treasury Shares (1,013,423)	Total Equity 182,804,691
							Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income (63,783)
Common Stock			Special Reserve 2,005,384	Unappropriated Earnings 20,561,210
$ 96,242,451
-	-	735,456	-	(735,456)	-	-	-	-	-	-
-	-	-	1,264,919	(1,264,919)	-	-	-	-	-	-
-	-	-	-	(2,850,967)	(2,850,967)	-	-	-	-	(2,850,967)
- -	- -	- -	- -	61,330,628 8,223	61,330,628 8,223	- (913,609)	- 219,524	- (694,085)	- -	61,330,628 (685,862)
-	-	-	-	61,338,851	61,338,851	(913,609)	219,524	(694,085)	-	60,644,766
-	449	-	-	-	-	-	-	-	-	449
-	(1,356,246)	-	-	(8,101,518)	(8,101,518)	(753,444)	-	(753,444)	-	(10,211,208)
-	825,114	-	-	-	-	-	-	-	574,195	1,399,309
-	-	-	-	25,350	25,350	-	(25,350)	(25,350)	-	-
96,242,451	60,057,001	8,427,144	3,270,303	68,972,551	80,669,998	(4,873,573)	130,391	(4,743,182)	(439,228)	231,787,040
-	-	5,326,268	-	(5,326,268)	-	-	-	-	-	-
-	-	-	1,472,878	(1,472,878)	-	-	-	-	-	-
-	-	-	-	(9,575,824)	(9,575,824)	-	-	-	-	(9,575,824)
- -	- -	- -	- -	(21,101,374) 44,298	(21,101,374) 44,298	- 2,467,083	- (1,302,552)	- 1,164,531	- -	(21,101,374) 1,208,829
-	-	-	-	(21,057,076)	(21,057,076)	2,467,083	(1,302,552)	1,164,531	-	(19,892,545)
-	1,095	-	-	-	-	-	-	-	-	1,095
-	1,812,907	-	-	-	-	-	-	-	-	1,812,907
(19,248,490)	-	-	-	-	-	-	-	-	96,842	(19,151,648)
-	71,207	-	-	-	-	-	-	-	46,859	118,066
-	-	-	-	41,654	41,654	-	(41,654)	(41,654)	-	-
$ 76,993,961	61,942,210	13,753,412	4,743,181	31,582,159	50,078,752	(2,406,490)	(1,213,815)	(3,620,305)	(295,527)	185,099,091

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AUO CORPORATION Statements of Cash Flows

For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

Cash flows from operating activities: Profit (loss) before income tax Adjustments for: - depreciation - amortization - losses (gains) on financial instruments at fair value through profit or loss - interest expense - interest income - dividend income - compensation costs of share-based payments - share of profit of equity-accounted investees - gains on disposals of property, plant and equipment, net - gains on disposals of investments, net - impairment losses on assets - unrealized foreign currency exchange losses (gains) - others Changes in operating assets and liabilities: - accounts receivable - receivables from related parties - inventories - net defined benefit assets - other operating assets - contract liabilities - accounts payable - payables to related parties - provisions - other operating liabilities Cash generated from operations Interest received Dividends received Interest paid Income taxes refunded (paid) Net cash provided by operating activities	2022 $ (21,092,832) 19,845,290 118,802 11,461 976,170 (386,558) (1,559) 70,352 (8,383,800) (3,192) - 1,121,772 560,099 138,935 36,027,128 2,550,124 4,395,797 3,090 255,505 (1,551,093) (7,438,696) (9,207,644) (449,572) (9,058,509)	2021 62,435,499 22,394,148 170,775 (205,199) 1,371,931 (159,594) (2,598) 793,463 (12,431,269) (782,257) (496,461) 1,017,725 (7,139) 75,227 (11,734,364) (399,806) (2,973,563) (12,299) (2,308,415) 11,503,416 1,041,259 3,119,336 72,305 11,802,579
	8,501,070 389,937 3,810,426 (930,473) (6,244)	84,284,699 159,574 813,819 (1,416,424) 14,958
	11,764,716	83,856,626

(Continued)

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AUO CORPORATION Statements of Cash Flows

For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

Cash flows from investing activities: Disposals of financial assets at fair value through profit or loss Acquisitions of financial assets at amortized cost Disposals of financial assets at amortized cost Acquisitions of financial assets at fair value through other comprehensive income Acquisitions of equity-accounted investees Proceeds from return of capital deduction Acquisitions of property, plant and equipment Disposals of property, plant and equipment Decrease (increase) in refundable deposits Increase in other receivables from related parties Net cash outflow arising from spin-off Net cash used in investing activities Cash flows from financing activities: Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities Decrease in received guarantee deposits Cash dividends Capital reduction Treasury shares sold to employees Others Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at January 1 Cash and cash equivalents at December 31	2022		2021
	5,440 - 10,000,000 - (5,993,878) - (18,135,881) 516,127 95,645 (140,000) -		- (20,000,000) 10,000,000 (91,507) (23,104,090) 90,212 (10,221,675) 311,229 (572,337) (510,000) (1,316,465)
	(13,652,547)		(45,414,633)
	59,583,475 (21,814,000) (401,791) - (9,575,824) (19,151,648) 46,718 1,095		10,770,000 (65,837,500) (390,835) (51,290) (2,850,967) - 572,472 449
	8,688,025		(57,787,671)
	20,586		(2,709)
	6,820,780 35,620,938		(19,348,387) 54,969,325
	$ 42,441,718		35,620,938

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Attachment 5

Independent Auditors’ Report

To the Board of Directors of AUO Corporation:

Opinion

We have audited the consolidated financial statements of AUO Corporation (formerly AU Optronics Corp.) and its subsidiaries (“the Company”), which comprise the consolidated balance sheets as of December 31, 2022 and 2021, the consolidated statements of comprehensive income, consolidated statements of changes in equity, and consolidated statements of cash flows for the years ended December 31, 2022 and 2021, and notes to the consolidated financial statements including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for each of the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRS”), International Accounting Standards (“IAS”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Impairment of long-term non-financial assets (including goodwill)

Refer to Note 4(15) “Impairment – non-financial assets”, Note 5(1) and Note 5(2) “Critical Accounting Judgments and Key Sources of Estimations and Assumptions Uncertainty”, Note 6(10) “Property, Plant and Equipment”, Note 6(11) “Lease Arrangements” and Note 6(13) “Intangible Assets” to the consolidated financial statements.

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Description of key audit matter:

How the matter was addressed in our audit:

2. Revenue recognition

Refer to Note 4(18) “Revenue from contracts with customers” and Note 6(21) “Revenue from Contracts with Customers” to the consolidated financial statements.

Description of key audit matter:

How the matter was addressed in our audit:

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Other Matters

AUO Corporation has additionally prepared its parent-company-only financial statements as of and for the years ended December 31, 2022 and 2021, on which we have issued an unmodified audit opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRS, IAS, IFRIC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (inclusive of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identified and assessed the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Concluded on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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Evaluated the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtained sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Yu, Chi-Lung and Yu, Wan-Yuan.

KPMG

Hsinchu, Taiwan (Republic of China) February 8, 2023

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRS, IAS, IFRIC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

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AUO CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars)

December 31,2022 Amount % $ 80,613,120 21 365,037 - - - 18,620,248 5 1,255,503 - 6,139 - 41,186 - 30,263,713 8 586,406 - 4,593,094 1 3,832,361 1 140,176,807 36 1,900,581 1 31,743,902 8 178,833,837 46 9,800,458 3 1,393,244 - 11,396,241 3 6,649,457 2 4,946,147 1 246,663,867 64 $ 386,840,674 100	December 31,2022 Amount % $ 80,613,120 21 365,037 - - - 18,620,248 5 1,255,503 - 6,139 - 41,186 - 30,263,713 8 586,406 - 4,593,094 1 3,832,361 1 140,176,807 36 1,900,581 1 31,743,902 8 178,833,837 46 9,800,458 3 1,393,244 - 11,396,241 3 6,649,457 2 4,946,147 1 246,663,867 64 $ 386,840,674 100	December 31,2021 Amount % 79,944,686 19 159,270 - 10,000,000 2 59,093,573 14 2,479,395 1 20,699 - 60,802 - 34,489,088 8 - - 2,186,682 - 3,592,203 1 192,026,398 45 1,308,157 - 25,447,133 6 171,222,045 40 10,638,373 3 1,437,692 - 11,756,955 3 6,466,588 2 4,507,705 1 232,784,648 55 424,811,046 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss－current 2170 Notes and accounts payable 2180 Accounts payable to related parties 2213 Equipment and construction payable 2220 Other payables to related parties 2230 Current tax liabilities 2250 Provisions－current 2280 Lease liabilities－current 2399 Other current liabilities 2322 Current installments of long-term borrowings Noncurrent liabilities: 2527 Contract liabilities－noncurrent 2540 Long-term borrowings, excluding current installments 2550 Provisions－noncurrent 2570 Deferred tax liabilities 2580 Lease liabilities－noncurrent 2600 Other noncurrent liabilities Total liabilities Equity: Equity attributable to shareholders of AUO Corporation : 3100 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other components of equity 3500 Treasury shares Non-controlling interests 36XX Non-controlling interests Total equity Total Liabilities and Equity	December 31,2022 Amount % $ 128,487 - 351,825 - 41,479,524 11 5,890,185 2 7,882,627 2 27,853 - 1,567,623 - 559,654 - 583,251 - 24,812,498 6 13,884,634 4 97,168,161 25 8,739,846 3 72,930,817 19 909,405 - 5,101,186 1 8,661,640 2 1,918,971 1 98,261,865 26 195,430,026 51 76,993,961 20 61,942,210 16 50,078,752 13 (3,620,305) (1) (295,527) - 185,099,091 48 6,311,557 1 191,410,648 49 $ 386,840,674 100	December 31,2022 Amount % $ 128,487 - 351,825 - 41,479,524 11 5,890,185 2 7,882,627 2 27,853 - 1,567,623 - 559,654 - 583,251 - 24,812,498 6 13,884,634 4 97,168,161 25 8,739,846 3 72,930,817 19 909,405 - 5,101,186 1 8,661,640 2 1,918,971 1 98,261,865 26 195,430,026 51 76,993,961 20 61,942,210 16 50,078,752 13 (3,620,305) (1) (295,527) - 185,099,091 48 6,311,557 1 191,410,648 49 $ 386,840,674 100	December 31,2021 Amount % 45,324 - 132,797 - 54,574,143 13 8,825,361 2 4,317,199 1 72,411 - 2,607,235 1 942,290 - 534,706 - 34,869,439 8 16,833,597 4 123,754,502 29 8,739,846 2 37,821,267 9 946,018 - 4,224,720 1 9,190,535 2 2,167,687 1 63,090,073 15 186,844,575 44 96,242,451 23 60,057,001 14 80,669,998 19 (4,743,182) (1) (439,228) - 231,787,040 55 6,179,431 1 237,966,471 56 424,811,046 100	December 31,2021 Amount % 45,324 - 132,797 - 54,574,143 13 8,825,361 2 4,317,199 1 72,411 - 2,607,235 1 942,290 - 534,706 - 34,869,439 8 16,833,597 4 123,754,502 29 8,739,846 2 37,821,267 9 946,018 - 4,224,720 1 9,190,535 2 2,167,687 1 63,090,073 15 186,844,575 44 96,242,451 23 60,057,001 14 80,669,998 19 (4,743,182) (1) (439,228) - 231,787,040 55 6,179,431 1 237,966,471 56 424,811,046 100
Amount $ 80,613,120 365,037 - 18,620,248 1,255,503 6,139 41,186 30,263,713 586,406 4,593,094 3,832,361		Amount 79,944,686 159,270 10,000,000 59,093,573 2,479,395 20,699 60,802 34,489,088 - 2,186,682 3,592,203	Amount $ 128,487 351,825 41,479,524 5,890,185 7,882,627 27,853 1,567,623 559,654 583,251 24,812,498 13884634		Amount 45,324 132,797 54,574,143 8,825,361 4,317,199 72,411 2,607,235 942,290 534,706 34,869,439 16833597
140,176,807	36	192,026,398	,, 97168161	25	,, 123754502	29
1,900,581 31,743,902 178,833,837 9,800,458 1,393,244 11,396,241 6,649,457 4,946,147	1 8 46 3 - 3 2 1	1,308,157 25,447,133 171,222,045 10,638,373 1,437,692 11,756,955 6,466,588 4,507,705	,, 8,739,846 72,930,817 909,405 5,101,186 8,661,640 1,918,971	3 19 - 1 2 1	,, 8,739,846 37,821,267 946,018 4,224,720 9,190,535 2,167,687	2 9 - 1 2 1
			98,261,865	26	63,090,073	15
			195,430,026	51	186,844,575	44
			76,993,961 61,942,210 50,078,752 (3,620,305) (295,527)	20 16 13 (1) -	96,242,451 60,057,001 80,669,998 (4,743,182) (439,228)	23 14 19 (1) -
246,663,867	64	232,784,648
$ 386,840,674	100	424,811,046
			185,099,091	48	231,787,040	55
			6,311,557	1	6,179,431	1
			191,410,648	49	237,966,471	56
			$ 386,840,674	100	424,811,046	100

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AUO CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income For the years ended December 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)

2022	% 101 1	2021	% 101 1
Amount $ 249,956,539 3,163,865		Amount 373,670,560 2,985,419
246,792,674 245,225,166	100 99	370,685,141 279,917,384	100 76
1,567,508	1	90,767,757	24
4,817,426 7,852,697 12,867,781	2 3 5	5,095,946 9,526,519 13,069,676	1 3 3
25,537,904	10	27,692,141	7
(23,970,396)	(9)	63,075,616	17
878,975 3,211,169 (121,274) (1,507,963) 2,003,297	- 1 - - 1	495,332 1,389,680 1,037,458 (2,217,565) 2,626,274	- - - - 1
4,464,204	2	3,331,179	1
(19,506,192) 1,466,988	(7) 1	66,406,795 2,947,697	18 1
(20,973,180)	(8)	63,459,098	17
	- - (1) -	21,260 (33,560) 244,624 (4,577)	- - - -
(1,258,254)	(1)	227,747	-
2,388,106 562,474 (490,056)	1 - -	(1,277,481) (59,103) 345,815	- - -
2,460,524	1	(990,769)	-
1,202,270	-	(763,022)	-
$ (19,770,910)	(8)	62,696,076	17
$ (21,201,374) 128,194	(8) -	61,330,628 2,128,470	16 1
$ (21,073,180)	(8)	63,459,098	17
$ (19,892,545) 121,635	(8) -	60,644,766 2,051,310	16 1
$ (19,770,910)	(8)	62,696,076	17
$	(2.39)		6.44
$	(2.39)		6.26

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AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

Equity Attributable to Shareholders of AUO Corporation

	Retained	Earnings	Subtotal 30,258,282	Other Components of Equity Cumulative Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Translation Differences Comprehensive Income Subtotal (3,206,520) (63,783) (3,270,303) - - - - - - - - - - - - (913,609) 219,524 (694,085) (913,609) 219,524 (694,085) - - - - - - - - - - (25,350) (25,350) (753,444) - (753,444) - - - (4,873,573) 130,391 (4,743,182) - - - - - - - - - - - - 2,467,083 (1,302,552) 1,164,531 2,467,083 (1,302,552) 1,164,531 - - - - - - - - - - - - - (41,654) (41,654) - - - (2,406,490) (1,213,815) (3,620,305)	Other Components of Equity Cumulative Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Translation Differences Comprehensive Income Subtotal (3,206,520) (63,783) (3,270,303) - - - - - - - - - - - - (913,609) 219,524 (694,085) (913,609) 219,524 (694,085) - - - - - - - - - - (25,350) (25,350) (753,444) - (753,444) - - - (4,873,573) 130,391 (4,743,182) - - - - - - - - - - - - 2,467,083 (1,302,552) 1,164,531 2,467,083 (1,302,552) 1,164,531 - - - - - - - - - - - - - (41,654) (41,654) - - - (2,406,490) (1,213,815) (3,620,305)	Treasury Shares (1,013,423)	Total Equity 193,790,365
				Cumulative Translation Differences (3,206,520) - - - - (913,609) (913,609) - - - - (753,444) - (4,873,573) - - - - 2,467,083 2,467,083 - - - - - - (2,406,490)	Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income (63,783) - - - - 219,524 219,524 - - - (25,350) - - 130,391 - - - - (1,302,552) (1,302,552) - - - - (41,654) - (1,213,815)
Legal Reserve 7,691,688 735,456 - - - - - - - - - - - 8,427,144 5,326,268 - - - - - - - - - - - 13,753,412	Special Reserve 2,005,384 - 1,264,919 - - - - - - - - - - 3,270,303 - 1,472,878 - - - - - - - - - - 4,743,181	Unappropriated Earnings 20,561,210 (735,456) (1,264,919) (2,850,967) 61,330,628 8,223 61,338,851 - (401,507) - 25,350 (7,700,011) - 68,972,551 (5,326,268) (1,472,878) (9,575,824) (21,101,374) 44,298 (21,057,076) - - - - 41,654 - 31,582,159
			-			-	-
			-			-	-
			(2,850,967)			-	(2,850,967)
			61,330,628 8,223			- -	63,459,098 (763,022)
			61,338,851			-	62,696,076
			-			-	449
			(401,507)			-	(424,106)
			-			574,195	1,403,727
			25,350			-	-
			(7,700,011)			-	(17,317,787)
			-			-	668,714
			80,669,998			(439,228)	237,966,471
			-			-	-
			-			-	-
			(9,575,824)			-	(9,575,824)
			(21,101,374) 44,298			- -	(20,973,180) 1,202,270
			(21,057,076)			-	(19,770,910)
			-			-	1,095
			-			-	1,813,511
			-			96,842	(19,151,648)
			-			46,859	130,765
			41,654			-	-
			-			-	(2,812)
			50,078,752			(295,527)	191,410,648

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AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

Cash flows from operating activities: Profit (loss) before income tax Adjustments for: - depreciation - amortization - gains on financial instruments at fair value through profit or loss - interest expense - interest income - dividend income - compensation costs of share-based payments - share of profit of equity-accounted investees - gains on disposals of property, plant and equipment, net - gains on disposals of right-of-use assets - gains on disposals of investments - impairment losses on assets - unrealized foreign currency exchange losses - others Changes in operating assets and liabilities: - notes and accounts receivable - receivables from related parties - inventories - net defined benefit assets - other operating assets - contract liabilities - notes and accounts payable - payables to related parties - provisions - other operating liabilities Cash generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash provided by operating activities	2022 $ (19,506,192) 31,281,587 184,766 (85,959) 1,349,724 (878,975) (6,571) 84,085 (2,003,297) (1,024,832) - - 1,179,565 158,438 82,019 39,381,310 1,238,452 4,214,575 1,829 (49,986) (1,507,156) (12,705,469) (2,979,734) (489,391) (9,677,630) 28,241,158 782,513 1,827,279 (1,522,704) (2,357,288) 26,970,958	2021 66,406,795 33,457,081 207,519 (86,083) 2,135,444 (495,332) (8,090) 831,251 (2,626,274) (1,841,771) (8,294) (890,046) 1,046,693 413,858 203,557 (13,601,272) (401,129) (7,754,868) (16,711) (1,913,817) 11,610,060 6,265,160 1,564,223 103,273 11,690,743
		106,291,970 462,503 920,439 (2,143,663) (810,013)
		104,721,236

(Continued)

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AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows

For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

(Expressed in thousands of New Taiwa	n dollars)
Cash flows from investing activities: Disposals of financial assets at fair value through profit or loss Acquisitions of financial assets at fair value through other comprehensive income Disposals of financial assets at fair value through other comprehensive income Acquisitions of financial assets at amortized cost Disposals of financial assets at amortized cost Acquisitions of equity-accounted investees Disposals of equity-accounted investees Net cash inflow arising from disposal of subsidiaries Acquisitions of property, plant and equipment Disposals of property, plant and equipment Disposals of right-of-use assets Increase in receipts in advance due to disposal of assets Decrease (increase) in refundable deposits Acquisitions of intangible assets Increase in other financial assets Net cash inflow (outflow) arising from acquisition of subsidiaries Net cash outflow arising from acquisition of business Net cash used in investing activities Cash flows from financing activities: Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities Decrease in received guarantee deposits Cash dividends Capital reduction Treasury shares sold to employees Acquisition of interest in subsidiary Net change of non-controlling interests Others Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at January 1 Cash and cash equivalents at December 31	2022 5,440 (544,218) 10,002 (660,262) 10,000,000 (5,183,707) 83,152 - (35,950,205) 845,768 - 848,008 83,193 (2,929) (743,153) (704,049) - (31,912,960) 539,963 (457,499) 64,168,996 (32,619,345) (574,590) (20,819) (9,575,824) (19,151,648) 46,718 - (2,812) 1,095 2,354,235 3,256,201 668,434 79,944,686 $ 80,613,120	2021 551,841 (962,762) - (20,695,648) 10,000,000 (3,890,105) 66,117 5,303 (17,033,027) 2,009,445 12,752 - (579,745) - (19,465) 227,701 (42,715)
		(30,350,308)
		1,568,737 (1,723,311) 12,987,993 (75,917,873) (551,367) (20,409) (2,850,967) - 572,472 (17,317,787) (218,415) 449
		(83,470,478)
		(1,230,451)
		(10,330,001) 90,274,687
		79,944,686

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Attachment 5

2022 Earnings Distribution Proposal

==> picture [446 x 225] intentionally omitted <==

----- Start of picture text -----

Amount in NT$
Items Amount
Unappropriated Retained Earnings, Beginning Balance 52,597,580,213
Add: Change in Remeasurement of Defined Benefit Plan (Note1) 44,298,194
Disposal of Equity Instruments at Fair Value through
41,653,782
Other Comprehensive Income
Reversal of Special Reserve (Note 2) 1,122,876,238
Less: Net Loss after Tax of 2022 (21,101,373,561)
Unappropriated Retained Earnings, Ending Balance 32,705,034,866
----- End of picture text -----

Note 1. Including the Company’s and the adjustments of investments accounted under equity method. Note 2. The special reserve is set aside based on the balance of special reserve deducting the other components of equity as of December 31, 2022.

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Attachment 6

List of non-competition restrictions proposed to be lifted

List of non-competition restrictions proposed to be lifted	List of non-competition restrictions proposed to be lifted	List of non-competition restrictions proposed to be lifted
Title Name Released restriction
Director Han-Chou (Joe) Huang, Representative of Qisda Corporation Director, Alpha Networks Inc.
Independent	Chin-Bing (Philip) Peng	Director, Cruise10 Co., Ltd.
Director

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AI assistant

AUO — AGM Information 2023

52062_rns_2023-08-17_f3e8380f-bee1-4cbb-a5d3-00656e093c60.pdf

AUO Corporation

Meeting Minutes Of 2023 Annual General Shareholders’ Meeting

(Translation)

Resolution Notice

AUO Corporation

2023 Annual General Shareholders’ Meeting Minutes

Summary of Shareholders’ Statements ：

Summary of Shareholders’ Statements ：

6. Extraordinary Motions

7. Meeting Adjourn

Attachment 1

2022 Business Report

 Advanced LED display technology:

 Smart mobility

 Smart healthcare

 Smart retail

 Smart education and entertainment

Audit Committee’s Review Report

AUO Corporation

Independent Auditors’ Report

To the Board of Directors of AUO Corporation:

Opinion

Basis for Opinion

Key Audit Matters

1. Impairment of long-term non-financial assets (including goodwill)

Description of key audit matter:

How the matter was addressed in our audit:

2. Revenue recognition

Description of key audit matter:

Notes to Readers

AUO CORPORATION Balance Sheets December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

AUO CORPORATION Statements of Comprehensive Income For the years ended December 31, 2022 and 2021

AUO CORPORATION Statements of Changes in Equity For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

AUO CORPORATION Statements of Cash Flows

AUO CORPORATION Statements of Cash Flows

Attachment 5

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Impairment of long-term non-financial assets (including goodwill)

Description of key audit matter:

How the matter was addressed in our audit:

2. Revenue recognition

Description of key audit matter:

How the matter was addressed in our audit:

Other Matters

Notes to Readers

AUO CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars)

AUO CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income For the years ended December 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)

AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows For the years ended December 31, 2022 and 2021 (Expressed in thousands of New Taiwan dollars)

AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows

Attachment 5

2022 Earnings Distribution Proposal

Attachment 6

More from AUO

AUO AGM Information 2023