AU Optronics Corp. Reports 1Q2013 Financial Results

HSINCHU, Taiwan, April 30, 2013 /PRNewswire/ -- AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited earnings results for the first quarter of 2013(1).

Consolidated revenue in the first quarter of 2013 was NT$94,244 million (US$3,161 million) (2), down 5.2% from the previous quarter. Gross profit was NT$4,548 million (US$153 million), with the gross margin of 4.8%. Operating loss was NT$1,361 million (US$46 million), with the operating margin of -1.4%. AUO's net loss for the first quarter of 2013 was NT$3,320 million (US$111 million). Net loss attributable to owners of Company was NT$3,173 million (US$106 million), or a basic EPS of -NT$0. 36 (-US$0.12 per ADR).

1Q2013 Result Highlights

AUO's unaudited consolidated results for the first quarter of 2013 were highlighted as below:

• Revenue was NT$94,244 million, down 5.2% quarter-over-quarter
• Net loss was NT$3,320 million
• Basic EPS was -NT$0. 36
• Gross margin was 4.8%
• Operating margin was -1.4%
• EBITDA (3) margin was 16.3%

In the first quarter of 2013, shipments for AUO's large-sized panel shipments reached around 27.0 million units, down by 13% quarter-over-quarter. Shipments for small and medium-sized panels were around 30.7 million units, down 18.5% quarter-over-quarter.

Looking back to the first quarter, AUO's display segment dispelled the gloom and turned profitable at the operating level despite the traditional slow season. On the back of product mix improvement and yield enhancement, for the display segment, the company reported positive operating margin with EBITDA margin increased to 17.5%. AUO not only had critical breakthroughs on the yield of tablet panels and also had at least doubled its tablet panel shipments sequentially. Also, the Company's UHD 4K TV panels have been well recognized by the leading international brands and mass production has smoothly commenced in the first quarter. On the other hand, for the solar segment, the market and product differentiation that gradually evolved has helped to boost the demand and price of the high-efficiency products. In addition, with the Company's constant efforts to work down the operating expenses, its loss for the solar segment has further improved.

Looking forward to the second quarter, the Company's operation is expected to further grow supported by several positive factors. For the TV panel market, AUO plans to ride the trends of large-screen TV to increase the average panel size of the Company and to continuously strengthen its competitive edge on the high-resolution products. In addition, for the small and medium-sized panels and touch applications, the Company's customer portfolio is becoming more solid and diversified. With more customers' new models expected to roll out this quarter, the Company's capacity utilization rates has chances to trend up sequentially. Driven together by smartphone, tablet, and touch panels, it is hoped to further contribute to AUO's growth momentum and earnings performance.

(1) All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles on Taiwan IFRS.
(2) Amounts converted by an exchange rate of NTD29.81:USD1 based on Federal Reserve Bank of New York, USA as of March 31, 2013.
(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.

ABOUT AU OPTRONICS
AU Optronics Corp. (AUO) is one of the world's leading providers of optoelectronic solutions. AUO offers a full range of panel sizes and comprehensive applications ranging from 1.5 inches to 65 inches. Based on its profound R&D and manufacturing experience, AUO continues to develop advanced display technologies of the next generation. AUO extended its market to the green energy industry in 2008. By building a vertically integrated high-efficiency solar value chain, AUO provides its customers with high-efficiency solar solutions. AUO currently has global operations in Taiwan, Mainland China, the U.S., Japan, South Korea, Singapore, the Netherlands, Czech and Slovakia. Additionally, AUO is the first pure TFT-LCD manufacturer to be successfully listed at the New York Stock Exchange (NYSE). AUO has also been named to Dow Jones Sustainability World Index for three consecutive years from 2010 to 2012. AUO generated NT$378.5 billion (US$ 13.03 billion) in sales revenue in 2012. For more information, please visit AUO.com.

* 2012 year end revenue converted at an exchange rate of NTD29.05 : USD 1.

Safe Harbour Notice
AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), a global leader of TFT-LCD panels, today announced the above news. Except for statements in respect of historical matters, the statements contained in this Release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements were based on our management's expectations, projections and beliefs at the time regarding matters including, among other things, future revenues and costs, financial performance, technology changes, capacity, utilization rates, yields, process and geographical diversification, future expansion plans and business strategy. Such forward looking statements are subject to a number of known and unknown risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements, including risks related to the flat panel display industry, the TFT-LCD market, acceptance of and demand for our products, technological and development risks, competitive factors, and other risks described in the section entitled "Risk Factors" in our Form 20-F filed with the United States Securities and Exchange Commission on March 15th, 2013.