AUO - Interim / Quarterly Report 2017

AU Optronics Corp. Third Quarter 2017 Results Investor Conference 友達光電 2017 年第三季法人說明會

Oct. 26, 2017

Safe Harbor Notice

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The statements included in this presentation that are not historical in nature are “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements, which may include statements regarding AU Optronics’ future results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on AU Optronics’ current expectations.
Actual results may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including, among other things: the cyclical nature of our industry; our dependence on introducing new products on a timely basis; our dependence on growth in the demand for our products; our ability to compete effectively; our ability to successfully expand our capacity; our dependence on key personnel; general economic and political conditions, including those related to the TFT-LCD industry; possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.
Beginning on January 1, 2013, we have adopted the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”) to the extent endorsed by the ROC Financial Supervisory Commission (“FSC”) (“Taiwan IFRS”) for reporting our annual and interim consolidated financial statements in the ROC in accordance with the requirements of the FSC. All financial information contained herewithin is presented in conformity with Taiwan IFRS. Readers should be cautioned that Taiwan IFRS differs in many material respects from IFRS including to the extent that any new or amended standards or interpretations applicable under IFRS may not be timely endorsed by the FSC.
Our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure beyond that which is imposed by law, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.

Statement of Comprehensive Income

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Selected Items from Statement of Comprehensive Income

Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit Net Non-operating Income(Expenses) Profit before Tax Net Profit Net Profit Attributable to Owners of Company Basic EPS (NT$) (a) Amount : NT$ Million	87,395 100.0% (72,083) (82.5%) 15,313 17.5% (5,570) (6.4%) 9,743 11.1% 764 0.9% 10,507 12.0% 8,224 9.4% 8,856 10.1% 0.92 3Q17	84,412 100.0% (67,292) (79.7%) 17,121 20.3% (5,445) (6.5%) 11,676 13.8% (32) (0.0%) 11,644 13.8% 8,946 10.6% 9,830 11.6% 1.02 2Q17	QoQ % 3.5% 86,017 100.0% 7.1% (74,709) (86.9%) (10.6%) 11,308 13.1% 2.3% (5,549) (6.5%) (16.6%) 5,759 6.7% `－` (340) (0.4%) (9.8%) 5,420 6.3% (8.1%) 4,616 5.4% (9.9%) 4,898 5.7% (9.8%) 0.51 3Q16
Operating Profit + D&A	18,455 21.1%	20,682 24.5%	(10.8%) 15,400 17.9%

Display Segment Information: Net Sales Operating Profit OperatingProfit + D&A	82,718 100.0% 9,759 11.8% 18,076 21.9%	79,914 100.0% 11,804 14.8% 20,389 25.5%	3.5% 80,614 100.0% (17.3%) 5,937 7.4% (11.3%) 15,120 18.8%

Unit Shipments (mn) (b) Large Size Panels Small & Medium Size Panels	29.1 46.8	26.8 38.7	8.3% 29.3 21.1% 38.0

a) Basic EPS in both 3Q17 and 2Q17 were calculated based on the weighted average outstanding shares of the first nine months of 2017 (9,624m shares); Basic EPS in 3Q16 was calculated based on the weighted average outstanding shares of 2016 (9,624m shares).
b) Large size refers to panels that are 10 inches and above

Consolidated Balance Sheet Highlights

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Amount : NT$ Million

Amount : NT$ Million
Cash & ST Investment (a) Inventory Short Term Debt (b) Long Term Debt Equity Total Assets	3Q17 107,656 25,021 21,073 101,996 220,317 449,239	2Q17 102,801 25,540 19,032 105,676 211,145 441,143	QoQ % 4.7% (2.0%) 10.7% (3.5%) 4.3% 1.8%

Inventory Turnover (Days) (c) Net Debt to Equity (d)	32 7.0%	35 10.4%	33 27.7%

a) Excluding time deposit with maturity longer than 3 months (NT$0m in 3Q17,2Q17 and 3Q16 )
b) Short term debt refers to all interest bearing debt maturing within one year
c) Calculated by dividing the average inventory into the annualized cost of goods sold during such period, then multiplying by 365 days
d) Net Debt to Equity = (Short Term Debt + Long Term Debt - Cash and ST Investment) / Equity

Consolidated Cash Flow Highlights

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Amount : NT$ Million

From Operating Activities Profit before Tax Depreciation & Amortization Net Change in Working Capital From Investing Activities Capital Expenditure From Financing Activities Net Change in Debt Net Change in Cash(a)	3Q17 19,754 10,507 8,712 569 (7,584) (8,072) (7,421) (1,926) 4,855	2Q17 24,627 11,644 9,006 3,955 (8,750) (8,264) 1,077 1,088 17,317	QoQ (4,873) (1,137) (294) (3,386) 1,166 191 (8,498) (3,014) (12,462)

a) In addition to cash generated from operating, investing and financing activities, net change in cash also include effect on currency exchange of foreign subsidiaries

Display Revenue Breakdown by Application

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100%
80%
46% 48% 48% 49% 47%
TV
60% Monitor
Mobile PC
15% 13%
15% 16% 14%
40%
Mobile Device
17% 18%
17% 17% 17% Commercial
and Others
20% 5% 4%
5% 5% 4%
17% 18%
15% 14% 16%
0%
3Q16 4Q16 1Q17 2Q17 3Q17
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Mobile PC : including Notebook and Tablet displays
Mobile Device : including displays for mobile phones and other related products
Commercial and Others: including displays for automobile, industrial PC, ATM, point of sale (POS), pachinko, and etc.

Display Revenue Breakdown by Size

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100%
28% 27% 29% 31% 30%
80%
>=50"
15% 17%
16% 14%
15%
60% 39"<=size<50"
20"<=size<39"
15%
16% 15%
16%
16%
10"<=size<20"
40%
size<10"
26%
25% 24% 26%
24%
20%
16% 15% 15% 14% 15%
0%
3Q16 4Q16 1Q17 2Q17 3Q17
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Consolidated Shipments & ASP by Area

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(K m[2] ) 7,000

3,500

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Shipments in square meter ASP per square meter
(US$)
500
$421
$413 $415
$395
400 $372
6,617 6,458 6,689
6,196 6,187
300
200
3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17
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ASP per square meter in US$ was translated from NT$ based on average exchange rates announced by Customs Administration, Ministry of Finance of each respective quarter

Consolidated Small & Medium Panel Shipments by Area & Revenues

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Shipments in square meter Revenues
(K m [2] ) (NT$ bn)
450 20
16
12.6 12.6 12.2
300 12.0
11.1
12
400.2
8
334.4 324.0 332.5
150 307.1
4
0 0
3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17
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Small & Medium size refers to panels that are under 10 inches

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www.auo.com [email protected]

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

For the Three Months Ended September 30, 2017 and 2016 and June 30, 2017

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(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) except for per share amounts and shares outstanding)

Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit(Loss) Net Non-operating Income(Expenses) Profit(Loss) before Income Tax Income Tax Expense Net Profit(Loss) Other Comprehensive Income(Loss) Total Comprehensive Income(Loss) Net Profit(Loss) Attributable to: Owners of Company Non-Controlling Interests Net Profit(Loss) Total Comprehensive Income(Loss) Attributable to Owners of Company Non-Controlling Interests Total Comprehensive Income(Loss) Basic Earnings Per Share Basic Earnings Per ADS(2) Weighted-Average Shares Outstanding ('M)		Year over	Year Comparison	Year Comparison	YoY% 1.6 (3.5) 35.4 0.4 69.2 `－` 93.9 183.9 78.2 `－` 287.8 80.8 123.8 78.2 195.3 (64.6) 287.8		Sequential Comparison	Sequential Comparison	Sequential Comparison
	USD 2,881 2,377 505 184 321 25 346 (75) 271 31 302 292 (21) 271 : 312 (10) 302 0.03 0.30	NTD 87,395 72,083 15,313 5,570 9,743 764 10,507 (2,283) 8,224 946 9,170 8,856 (632) 8,224 9,468 (298) 9,170 0.92 9.20 9,624 3Q17	% 100.0 82.5 17.5 6.4 11.1 0.9 12.0 (2.6) 9.4 1.1 10.5 10.1 (0.7) 9.4 10.8 (0.3) 10.5	3Q16 NTD 86,017 74,709 11,308 5,549 5,759 (340) 5,420 (804) 4,616 (2,251) 2,365 4,898 (282) 4,616 3,207 (842) 2,365 0.51 5.09 9,624		USD 2,881 2,377 505 184 321 25 346 (75) 271 31 302 292 (21) 271 312 (10) 302 0.03 0.30	NTD 87,395 72,083 15,313 5,570 9,743 764 10,507 (2,283) 8,224 946 9,170 8,856 (632) 8,224 9,468 (298) 9,170 0.92 9.20 9,624 3Q17	% 100.0 82.5 17.5 6.4 11.1 0.9 12.0 (2.6) 9.4 1.1 10.5 10.1 (0.7) 9.4 10.8 (0.3) 10.5	2Q17 NTD QoQ% 84,412 3.5 67,292 7.1 17,121 (10.6) 5,445 2.3 11,676 (16.6) (32) `－` 11,644 (9.8) (2,698) (15.4) 8,946 (8.1) 2,023 (53.2) 10,969 (16.4) 9,830 (9.9) (883) (28.5) 8,946 (8.1) 11,596 (18.4) (627) (52.4) 10,969 (16.4) 1.02 10.21 9,624

Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 30.33 per USD as of September 30, 2017 © 2017 AU Optronics Corporation – Proprietary and Confidential 11 (2) 1 ADS equals 10 common shares

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

For the Period Ended September 30, 2017 and 2016

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(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) except for per share amounts and shares outstanding)

Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit(Loss) Net Non-operating Income(Expenses) Profit(Loss) before Income Tax Income Tax Expense Net Profit(Loss) Other Comprehensive Income(Loss) Total Comprehensive Income(Loss) Net Profit(Loss) Attributable to: Owners of Company Non-Controlling Interests Net Profit(Loss) Total Comprehensive Income(Loss) Attributable to: Owners of Company Non-Controlling Interests Total Comprehensive Income(Loss) Basic Earnings Per Share Basic Earnings Per ADS(2) Weighted-Average Shares Outstanding ('M)	Year over Year Comparison	Year over Year Comparison
	USD NTD 8,584 260,365 6,940 210,499 1,644 49,866 542 16,430 1,102 33,436 22 664 1,124 34,100 (247) (7,496) 877 26,605 (16) (485) 861 26,120 929 28,165 (51) (1,560) 877 26,605 923 27,980 (61) (1,861) 861 26,120 0.10 2.93 0.96 29.26 9,624 Nine Months 2017	Nine Months 2016 % NTD YoY% 100.0 237,243 9.7 80.8 219,982 (4.3) 19.2 17,262 188.9 6.3 16,484 (0.3) 12.8 778 4,197.5 0.3 (884) `－` 13.1 (106) `－` (2.9) (1,663) 350.8 10.2 (1,768) `－` (0.2) (5,294) (90.8) 10.0 (7,062) `－` 10.8 (1,152) `－` (0.6) (617) 152.9 10.2 (1,768) `－` 10.7 (4,814) `－` (0.7) (2,248) (17.2) 10.0 (7,062) `－` (0.12) (1.20) 9,624

Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 30.33 per USD as of September 30, 2017

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

September 30, 2017 and 2016

(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) )

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ASSETS Cash and Cash Equivalents Notes & Accounts Receivables Other Current Financial Assets Inventories Other Current Assets Total Current Assets Long-term Investments Net Fixed Assets Other Non-Current Assets Total Non-Current Assets Total Assets LIABILITIES Short-term Borrowings Accounts Payable Current Installments of Long-term Borrowings Current Financial Liabilities Accrued Expense & Other Current Liabilities Machinery and Equipment Payable Total Current Liabilities Long-term Borrowings Non-Current Financial Liabilities Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities EQUITY Common Stock Capital Surplus Retained Earnings Other Equity Non-Controlling Interests Total Equity Total Liabilities & Equity	USD NTD % 3,549 107,656 24.0 1,593 48,327 10.8 19 562 0.1 825 25,021 5.6 242 7,353 1.6 6,229 188,918 42.1 314 9,511 2.1 7,159 217,139 48.3 1,110 33,671 7.5 8,583 260,321 57.9 14,812 449,239 100.0 97 2,947 0.7 1,860 56,419 12.6 598 18,126 4.0 9 286 0.1 1,078 32,687 7.3 336 10,182 2.3 3,978 120,648 26.9 3,363 101,996 22.7 0 0 0.0 207 6,279 1.4 3,570 108,275 24.1 7,548 228,923 51.0 3,173 96,242 21.4 1,979 60,024 13.4 1,550 47,016 10.5 20 594 0.1 542 16,440 3.7 7,264 220,317 49.0 14,812 449,239 100.0 September 30, 2017	NTD % NTD % 74,053 17.6 33,602 45.4 43,339 10.3 4,989 11.5 964 0.2 (403) (41.8) 27,013 6.4 (1,992) (7.4) 6,568 1.6 784 11.9 151,938 36.2 36,980 24.3 7,902 1.9 1,609 20.4 213,187 50.8 3,953 1.9 46,623 11.1 (12,952) (27.8) 267,712 63.8 (7,391) (2.8) 419,650 100.0 29,589 7.1 1,393 0.3 1,555 111.6 59,187 14.1 (2,768) (4.7) 24,742 5.9 (6,616) (26.7) 29 0.0 257 885.2 24,393 5.8 8,294 34.0 9,034 2.2 1,147 12.7 118,779 28.3 1,869 1.6 101,218 24.1 778 0.8 5 0.0 (5) (100.0) 7,339 1.7 (1,060) (14.4) 108,562 25.9 (287) (0.3) 227,340 54.2 1,582 0.7 96,242 22.9 0 0.0 59,976 14.3 48 0.1 15,459 3.7 31,557 204.1 1,423 0.3 (829) (58.2) 19,209 4.6 (2,769) (14.4) 192,309 45.8 28,007 14.6 419,650 100.0 29,589 7.1 September 30, 2016 YoY
	USD 3,549 1,593 19 825 242 6,229 314 7,159 1,110 8,583 14,812 97 1,860 598 9 1,078 336 3,978 3,363 0 207 3,570 7,548 3,173 1,979 1,550 20 542 7,264 14,812

© 2017 AU Optronics Corporation – Proprietary and Confidential Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 30.33 per USD as of September 30, 201713 (2) Cash and Cash Equivalents excluding time deposit with maturity longer than 3 months

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Cash Flow Statements

For the Period Ended September 30, 2017 and 2016

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(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD))

Cash Flow from Operating Activities: Profit(Loss) before Income Taxes Depreciation & Amortization Share of Profit of Equity-Accounted Investees Changes in Working Capital Changes in Others Net Cash Provided(Used) by Operating Activities Cash Flow from Investing Activities: Proceeds from Disposal of AFS Investments Acquisition of Property, Plant and Equipment Proceeds from Disposal of Property, Plant and Equipment Acquisition of Equity-Accounted Investees and Financial Assets Carried at Cost Proceeds from Disposal of Equity-Accounted Investees and Financial Assets Carried at Cost Decrease(Increase) in Other Financial Assets Decrease(Increase) in Intangible Assets Decrease(Increase) in Other Assets Net Cash Provided(Used) in Investing Activities Cash Flow from Financing Activities: Increase(Decrease) in Short-term Borrowings Increase(Decrease) in Long-term Borrowings Increase(Decrease) in Guarantee Deposits Cash Dividends Changes in Non-Controlling Interests and Others Net Cash Provided(Used) by Financing Activities Effect of Exchange Rate Changes on Cash Net Increase(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period	Nine Months 2016 USD NTD NTD 1,124 34,100 (106) 914 27,729 29,415 (6) (178) (222) 14 414 (8,758) (13) (400) (1,543) 2,033 61,666 18,786 0 0 10 (867) (26,289) (37,883) 35 1,067 741 (1) (41) (307) 0 0 3,577 (0) (10) (19) (6) (197) (187) (13) (406) (22) (853) (25,875) (34,089) 80 2,421 (201) (109) (3,312) 18,391 (1) (42) (28) (178) (5,390) (3,368) (3) (96) (2,689) (212) (6,419) 12,105 (63) (1,908) (1,629) 906 27,465 (4,827) 2,644 80,191 78,881 3,549 107,656 74,053 Nine Months 2017
	USD 1,124 914 (6) 14 (13) 2,033 0 (867) 35 (1) 0 (0) (6) (13) (853) 80 (109) (1) (178) (3) (212) (63) 906 2,644 3,549

Cash Flow from Operating Activities:
Profit(Loss) before Income Taxes
Depreciation & Amortization
Share of Profit of Equity-Accounted Investees
Changes in Working Capital
Changes in Others
Net Cash Provided(Used) by Operating Activities
Cash Flow from Investing Activities:
Proceeds from Disposal of AFS Investments
Acquisition of Property, Plant and Equipment
Proceeds from Disposal of Property, Plant and Equipment
Acquisition of Equity-Accounted Investees and Financial Assets Carried at Cost
Proceeds from Disposal of Equity-Accounted Investees and Financial Assets Carried at Cost
Decrease(Increase) in Other Financial Assets
Decrease(Increase) in Intangible Assets
Decrease(Increase) in Other Assets
Net Cash Provided(Used) in Investing Activities
Cash Flow from Financing Activities:
Increase(Decrease) in Short-term Borrowings
Increase(Decrease) in Long-term Borrowings
Increase(Decrease) in Guarantee Deposits
Cash Dividends
Changes in Non-Controlling Interests and Others
Net Cash Provided(Used) by Financing Activities
Effect of Exchange Rate Changes on Cash
Net Increase(Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period

Nine Months 2016
USD
NTD
NTD
1,124
34,100
(106)
914
27,729
29,415
(6)
(178)
(222)
14
414
(8,758)
(13)
(400)
(1,543)
2,033
61,666
18,786
0
0
10
(867)
(26,289)
(37,883)
35
1,067
741
(1)
(41)
(307)
0
0
3,577
(0)
(10)
(19)
(6)
(197)
(187)
(13)
(406)
(22)
(853)
(25,875)
(34,089)
80
2,421
(201)
(109)
(3,312)
18,391
(1)
(42)
(28)
(178)
(5,390)
(3,368)
(3)
(96)
(2,689)
(212)
(6,419)
12,105
(63)
(1,908)
(1,629)
906
27,465
(4,827)
2,644
80,191
78,881
3,549
107,656
74,053
Nine Months 2017

USD
1,124
914
(6)
14
(13)
2,033
0
(867)
35
(1)
0
(0)
(6)
(13)
(853)
80
(109)
(1)
(178)
(3)
(212)
(63)
906
2,644
3,549

AI assistant

AUO Interim / Quarterly Report 2017

52062_rns_2017-11-13_dcc48d1c-d318-4cf1-8929-17b4b9ff81e4.pdf

Safe Harbor Notice

Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income

Consolidated Balance Sheet Highlights

Amount : NT$ Million

Consolidated Cash Flow Highlights

Amount : NT$ Million

Display Revenue Breakdown by Application

Display Revenue Breakdown by Size

Consolidated Shipments & ASP by Area

Consolidated Small & Medium Panel Shipments by Area & Revenues

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

For the Period Ended September 30, 2017 and 2016

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

September 30, 2017 and 2016

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Cash Flow Statements

For the Period Ended September 30, 2017 and 2016

AI assistant

AUO — Interim / Quarterly Report 2017

52062_rns_2017-11-13_dcc48d1c-d318-4cf1-8929-17b4b9ff81e4.pdf

Safe Harbor Notice

Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income

Consolidated Balance Sheet Highlights

Amount : NT$ Million

Consolidated Cash Flow Highlights

Amount : NT$ Million

Display Revenue Breakdown by Application

Display Revenue Breakdown by Size

Consolidated Shipments & ASP by Area

Consolidated Small & Medium Panel Shipments by Area & Revenues

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

For the Period Ended September 30, 2017 and 2016

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

September 30, 2017 and 2016

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Condensed Cash Flow Statements

For the Period Ended September 30, 2017 and 2016

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