AUO — Interim / Quarterly Report 2016

Mar 22, 2017

AU Optronics Corp. Fourth Quarter 2016 Results Investor Conference 友達光電 2016 年第四季法人說明會

Feb. 14, 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.

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© 2015 AU Optronics Corporation – Proprietary and Confidential

Statement of Comprehensive Income

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Selected Items from Statement of Comprehensive Income

Amount : NT$ Million

Amount : NT$ Million
Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit(Loss) Net Non-operating Expenses Profit(Loss) before Tax Net Profit(Loss) Attributable to: Owners of Company Non-Controlling Interests Net Profit(Loss) Basic EPS (NT$)(a)	91,846 100.0% (74,616) (81.2%) 17,229 18.8% (5,669) (6.2%) 11,560 12.6% (269) (0.3%) 11,291 12.3% 8,375 9.1% 8,971 9.8% (596) (0.6%) 8,375 9.1% 0.93 4Q16	86,017 100.0% (74,709) (86.9%) 11,308 13.1% (5,549) (6.5%) 5,759 6.7% (340) (0.4%) 5,420 6.3% 4,616 5.4% 4,898 5.7% (282) (0.3%) 4,616 5.4% 0.51 3Q16	QoQ % 6.8% (0.1%) 52.4% 2.2% 100.7% (20.8%) 108.3% 81.5% 83.1% 110.9% 81.5% 82.4%
Operating Profit + D&A	21,839 23.8%	15,400 17.9%	41.8% 9,371 11.2%
Display Segment Information: Net Sales Operating Profit(Loss) Operating Profit + D&A	86,673 100.0% 12,235 14.1% 22,070 25.5%	80,614 100.0% 5,937 7.4% 15,120 18.8%	7.5% 76,129 100.0% 106.1% (735) (1.0%) 46.0% 9,019 11.8%
Unit Shipments (mn)(b) Large Size Panels Small & Medium Size Panels	28.3 35.7	29.3 38.0	(3.2%) 27.6 (5.9%) 33.4

a) Basic EPS in both 4Q16 and 3Q16 were calculated based on the weighted average outstanding shares of 2016 (9,624m shares); Basic EPS in 4Q15 was calculated based on the weighted average outstanding shares of 2015 (9,624m shares). b) Large size refers to panels that are 10 inches and above

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© 2015 AU Optronics Corporation – Proprietary and Confidential

Statement of Comprehensive Income

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Selected Items from Statement of Comprehensive Income

Amount : NT$ Million

Amount : NT$ Million
Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit Net Non-operating Expenses Profit before Tax Net Profit Attributable to: Owners of Company Non-Controlling Interests Net Profit Basic EPS (NT$)(a)	329,089 100.0% (294,598) (89.5%) 34,491 10.5% (22,153) (6.7%) 12,338 3.7% (1,153) (0.4%) 11,186 3.4% 6,607 2.0% 7,819 2.4% (1,212) (0.4%) 6,607 2.0% 0.81 FY 2016	360,346 100.0% (320,509) (88.9%) 39,837 11.1% (22,316) (6.2%) 17,521 4.9% (9,922) (2.8%) 7,599 2.1% 4,843 1.3% 4,932 1.4% (89) (0.0%) 4,843 1.3% 0.51 FY 2015	YoY % (8.7%) (8.1%) (13.4%) (0.7%) (29.6%) (88.4%) 47.2% 36.4% 58.5% 1260.9% 36.4% 58.8%
Operating Profit + D&A ROE(b)	52,032 15.8% 4.3%	65,267 18.1% 2.7%	(20.3%) 58.4%
Display Segment Information: Net Sales Operating Profit Operating Profit + D&A	304,827 100.0% 12,704 4.2% 50,564 16.6%	333,392 100.0% 19,226 5.8% 64,016 19.2%	(8.6%) (33.9%) (21.0%)
Unit Shipments (mn)(c) Large Size Panels Small & Medium Size Panels	110.5 154.0	105.7 172.8	4.6% (10.9%)

a) Basic EPS in both 2016 and 2015 were calculated based on the weighted average outstanding shares of 9,624m shares.

b) ROE was based on average equity attributable to shareholders of the parent company c) Large size refers to panels that are 10 inches and above

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© 2015 AU Optronics Corporation – Proprietary and Confidential

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	4Q16 80,191 27,679 18,601 106,188 199,635 429,769	3Q16 74,053 27,013 26,135 101,218 192,309 419,650		QoQ % 8.3% 2.5% (28.8%) 4.9% 3.8% 2.4%
Inventory Turnover (Days)(c) Net Debt to Equity(d)	33 22.3%	33 27.7%		40 14.8%

• a) Excluding time deposit with maturity longer than 3 months (NT$0m in 4Q16 , NT$0m in 3Q16 , and NT$9,998m in 4Q15 ) 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

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© 2015 AU Optronics Corporation – Proprietary and Confidential

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)	4Q16 17,910 11,291 10,278 (1,957) (8,178) (8,337) (1,384) (3,107) 6,138	3Q16 3,962 5,420 9,641 (10,965) (7,640) (11,528) 5,670 10,108 1,099	QoQ 13,948 5,872 637 9,008 (538) 3,190 (7,054) (13,215) 5,039

• 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

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© 2015 AU Optronics Corporation – Proprietary and Confidential

Display Revenue Breakdown by Application

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100%
80%
44%
49% 46% 46% 48%
TV
60% Monitor
Mobile PC
16%
14% 15%
15%
14%
40%
Mobile Device
17% 17%
17%
17% 17% Commercial
and Others
20% 5% 4% 5%
6% 5%
14% 18% 19% 17% 15%
0%
4Q15 1Q16 2Q16 3Q16 4Q16
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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.

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© 2015 AU Optronics Corporation – Proprietary and Confidential

Display Revenue Breakdown by Size

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100%
28% 28% 27%
30% 30%
80%
>=50"
13%
15% 17%
13%
15%
60% 39"<=size<50"
16% 20"<=size<39"
15% 15%
15% 16%
10"<=size<20"
40%
size<10"
26%
26% 26%
25% 25%
20%
15% 17% 16% 16% 15%
0%
4Q15 1Q16 2Q16 3Q16 4Q16
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© 2015 AU Optronics Corporation – Proprietary and Confidential

Consolidated Shipments & ASP by Area

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Shipments in square meter ASP per square meter
(K m [2] ) (US$)
7,000 600
500
$413
$385
3,500 400 $372
6,492 6,617 6,458
$349
5,874 $340
5,343
300
0 200
4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16
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• ASP per square meter in US$ was translated from NT$ based on average exchange rates announced by Customs Administration, Ministry of Finance of each respective quarter

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© 2015 AU Optronics Corporation – Proprietary and Confidential

Consolidated Small & Medium Panel Shipments by Area & Revenues

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Shipments in square meter Revenues
(K m [2] ) (NT$ bn)
400
20.0
300 16.0
12.6 12.6
11.6
10.8
12.0 10.6
200
352.0
334.4
302.0 307.1 8.0
256.8
100
4.0
0 0.0
4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16
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• Small & Medium size refers to panels that are under 10 inches

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© 2015 AU Optronics Corporation – Proprietary and Confidential

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www.auo.com ir@auo.com

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© 2015 AU Optronics Corporation – Proprietary and Confidential

AU OPTRONICS CORP.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

For the Three Months Ended December 31, 2016 and 2015 and September 30, 2016

(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(Expense) 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% 10.1 (5.5) 283.8 0.2 － (96.1) － 1,295.4 － (21.2) － － 934.2 － － 52.2 －		Sequential Comparison	Sequential Comparison	Sequential Comparison
	USD 2,835 2,303 532 175 357 (8) 349 (90) 258 (33) 226 277 (18) 258 251 (26) 226 0.03 0.29	NTD 91,846 74,616 17,229 5,669 11,560 (269) 11,291 (2,916) 8,375 (1,066) 7,310 8,971 (596) 8,375 8,141 (831) 7,310 0.93 9.32 9,624 4Q16	% 100.0 81.2 18.8 6.2 12.6 (0.3) 12.3 (3.2) 9.1 (1.2) 8.0 9.8 (0.6) 9.1 8.9 (0.9) 8.0	4Q15 NTD 83,442 78,954 4,489 5,659 (1,171) (6,859) (8,030) (209) (8,239) (1,353) (9,592) (8,182) (58) (8,239) (9,046) (546) (9,592) (0.85) (8.50) 9,624		USD 2,835 2,303 532 175 357 (8) 349 (90) 258 (33) 226 277 (18) 258 251 (26) 226 0.03 0.29	NTD 91,846 74,616 17,229 5,669 11,560 (269) 11,291 (2,916) 8,375 (1,066) 7,310 8,971 (596) 8,375 8,141 (831) 7,310 0.93 9.32 9,624 4Q16	% 100.0 81.2 18.8 6.2 12.6 (0.3) 12.3 (3.2) 9.1 (1.2) 8.0 9.8 (0.6) 9.1 8.9 (0.9) 8.0	3Q16 NTD QoQ% 86,017 6.8 74,709 (0.1) 11,308 52.4 5,549 2.2 5,759 100.7 (340) (20.8) 5,420 108.3 (804) 262.7 4,616 81.5 (2,251) (52.7) 2,365 209.1 4,898 83.1 (282) 110.9 4,616 81.5 3,207 153.9 (842) (1.3) 2,365 209.1 0.51 5.09 9,624

Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 32.40 per USD as of December 31, 2016 (2) 1 ADS equals 10 common shares

AU OPTRONICS CORP.

CONSOLIDATED INCOME STATEMENT

For the Year Ended December 31, 2016 and 2015

(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(Expense) 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	Year over Year Comparison
	USD 10,157 9,093 1,065 684 381 (36) 345 (141) 204 (196) 8 241 (37) 204 103 (95) 8 0.03 0.25	NTD 329,089 294,598 34,491 22,153 12,338 (1,153) 11,186 (4,579) 6,607 (6,360) 247 7,819 (1,212) 6,607 3,327 (3,079) 247 0.81 8.12 9,624 FY 2016	% 100.0 89.5 10.5 6.7 3.7 (0.4) 3.4 (1.4) 2.0 (1.9) 0.1 2.4 (0.4) 2.0 1.0 (0.9) 0.1	FY 2015 NTD YoY% 360,346 (8.7) 320,509 (8.1) 39,837 (13.4) 22,316 (0.7) 17,521 (29.6) (9,922) (88.4) 7,599 47.2 (2,756) 66.2 4,843 36.4 (768) 727.8 4,075 (93.9) 4,932 58.5 (89) 1,260.9 4,843 36.4 4,839 (31.3) (764) 302.9 4,075 (93.9) 0.51 5.12 9,624

Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 32.40 per USD as of December 31, 2016 (2) 1 ADS equals 10 common shares

AU OPTRONICS CORP.

CONSOLIDATED BALANCE SHEET

December 31, 2016 and 2015

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

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	Dec	NTD % 80,191 18.7 48,278 11.2 626 0.1 27,679 6.4 6,572 1.5 163,346 38.0 8,209 1.9 222,742 51.8 35,473 8.3 266,423 62.0 429,769 100.0 527 0.1 59,998 14.0 18,075 4.2 901 0.2 25,119 5.8 12,647 2.9 117,266 27.3 106,188 24.7 0 0.0 6,680 1.6 112,868 26.3 230,134 53.5 96,242 22.4 59,980 14.0 24,243 5.6 779 0.2 18,390 4.3 199,635 46.5 429,769 100.0 ember 31, 2016	NTD % NTD % 78,881 18.5 1,311 1.7 34,840 8.2 13,437 38.6 11,948 2.8 (11,323) (94.8) 31,796 7.5 (4,116) (12.9) 4,527 1.1 2,045 45.2 161,992 38.1 1,354 0.8 14,550 3.4 (6,341) (43.6) 208,786 49.1 13,956 6.7 40,227 9.5 (4,754) (11.8) 263,562 61.9 2,861 1.1 425,554 100.0 4,215 1.0 1,594 0.4 (1,067) (66.9) 61,443 14.4 (1,444) (2.4) 39,108 9.2 (21,033) (53.8) 554 0.1 347 62.7 31,029 7.3 (5,911) (19.0) 7,622 1.8 5,025 65.9 141,349 33.2 (24,083) (17.0) 68,537 16.1 37,651 54.9 11 0.0 (11) (100.0) 11,020 2.6 (4,340) (39.4) 79,568 18.7 33,299 41.9 220,918 51.9 9,216 4.2 96,242 22.6 0 0.0 60,250 14.2 (270) (0.4) 20,407 4.8 3,836 18.8 5,086 1.2 (4,306) (84.7) 22,651 5.3 (4,261) (18.8) 204,636 48.1 (5,001) (2.4) 425,554 100.0 4,215 1.0 December 31, 2015 YoY
	USD 2,475 1,490 19 854 203 5,042 253 6,875 1,095 8,223 13,264 16 1,852 558 28 775 390 3,619 3,277 0 206 3,484 7,103 2,970 1,851 748 24 568 6,162 13,264

Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 32.40 per USD as of December 31, 2016

(2) Cash and Cash Equivalents excluding time deposit with maturity longer than 3 months

AU OPTRONICS CORP.

CONSOLIDATED STATEMENT OF CASH FLOW

For the Period Ended December 31, 2016 and 2015

(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 Cash Increase Resulting from Change in Consolidated Entity Net Cash Provided(Used) in Investing Activities Cash Flow from Financing Activities: Increase(Decrease) in Short-term Borrowings Increase(Decrease) in Long-term Borrowings and Bonds Payable 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

2015 USD NTD NTD 345 11,186 7,599 1,225 39,693 47,746 (3) (101) (449) (331) (10,715) 320 (104) (3,367) 6,788 1,133 36,696 62,003 0 10 0 (1,427) (46,220) (33,440) 24 790 1,762 (9) (307) (85) 109 3,523 100 (1) (37) 227 (6) (187) (303) (1) (17) 5 6 179 0 (1,305) (42,267) (31,735) (33) (1,066) 1,212 498 16,149 (35,580) (1) (31) 157 (104) (3,368) (4,812) (30) (962) 4,745 331 10,721 (34,277) (118) (3,839) 924 40 1,311 (3,085) 2,435 78,881 81,965 2,475 80,191 78,881 2016

USD 345 1,225 (3) (331) (104) 1,133 0 (1,427) 24 (9) 109 (1) (6) (1) 6 (1,305) (33) 498 (1) (104) (30) 331 (118) 40 2,435 2,475

Note: (1) Amounts in New Taiwan dollars were translated into US dollars at the exchange rate of NTD 32.40 per USD as of December 31, 2016