AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its consolidated financial results for the first quarter of 2018⁽¹⁾.

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Consolidated revenues in the first quarter of 2018 were NT$74.44 billion, down by 7.7% quarter-over-quarter. AUO’s net profit attributable to owners of the Company for the first quarter of 2018 was NT$4.31 billion, with a basic EPS⁽²⁾ of NT$0.45.

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In the first quarter of 2018, large-sized panel⁽³⁾ shipments totaled 28.58 million units, down slightly by 0.2% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 46.57 million units, down by 0.8% quarter-over-quarter.

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Highlights of consolidated results for the first quarter of 2018:

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• Revenues of NT$74.44 billion
• Operating profit of NT$2.95 billion
• Net profit attributable to owners of the Company at NT$4.31 billion
• Basic EPS⁽²⁾ of NT$0.45
• Gross margin was 10.9%
• Operating margin was 4.0%
• EBITDA⁽⁴⁾ margin was 15.3%
• Operating margin of Display Segment was 4.5%
• EBITDA⁽⁴⁾ margin of Display Segment was 16.0%

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Looking back on the first quarter, due to continued panel prices decline and appreciation of the New Taiwan Dollar, AUO’s revenues for the first quarter came down by 7.7% quarter-over-quarter. Despite of such market conditions, the management team still managed to keep the Company’s profitability at a good level, where the operating profit reached NT$2.95 billion and net profit attributable to owners of the Company reached NT$4.31 billion. The inventory turnover days were 34 days and net debt to equity ratio was 4.8%, both indicators remaining at low levels. Overall, the Company has been able to maintain its financial structure at a stable and healthy status.

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Looking into the second quarter, the Company begins to prepare for the traditionally higher season. As AUO has laid a solid foundation in terms of differentiated and high value products placement, the Company will dynamically adjust its product line and product mix to respond to market fluctuation, aiming to achieve long-term profitability and operation stability for the Company.

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(1) All financial information was prepared by the Company in accordance with Taiwan IFRS.

(2) Basic EPS in the first quarter of 2018 were calculated based on the weighted average outstanding shares of the reporting quarter (9,624 million shares).

(3) Large size refers to panels that are 10 inches and above.

(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.