AUO Corporation ("AUO" or the "Company") (TSE: 2409; NYSE: AUO) today held its investor conference and announced its consolidated financial results for the first quarter of 2019⁽¹⁾.

Consolidated revenues for the first quarter of 2019 were NT$66.70 billion, down by 13.5% quarter-over-quarter. AUO’s net loss attributable to owners of the Company for the first quarter of 2019 was NT$3.69 billion, with a basic EPS⁽²⁾ of -NT$0.38.

In the first quarter of 2019, large-sized panel⁽³⁾ shipments totaled around 25.87 million units, down by 9.1% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 24.96 million units, down by 22.4% quarter-over-quarter.

Highlights of consolidated results for the first quarter of 2019

• Revenues of NT$66.70 billion
• Operating loss of NT$5.10 billion
• Net loss attributable to owners of the Company at NT$3.69 billion
• Basic EPS⁽²⁾ was -NT$0.38
• Gross margin was 0.4%
• Operating margin was -7.6%
• EBITDA⁽⁴⁾ margin was 6.1%
• Operating margin of Display Segment was -7.6%
• EBITDA⁽⁴⁾ margin of Display Segment was 6.4%

As the first quarter was the traditional slow season, the market demand remained lackluster. In addition, market prices for panels were still at low level. As a result, AUO’s revenues for the first quarter declined by 13.5% quarter-over-quarter, and the financial results were less than ideal. However, the management team has strived to maintain AUO’s financial structure at a stable and healthy status, where inventory turnover days were 37 days, and net debt to equity ratio was 12.6 %.

Looking into the second quarter, market demand has shown signs of recovery as brand customers start to prepare for the high season restocking. Besides AUO’s continuous market deployment in high value-added and non-commodity products, it will extend its value chain by integrating hardware and software services. By providing integrated total solution services, AUO aims to move towards a direction that jointly creates greater values with its customers.

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

(2) Basic EPS in the first quarter of 2019 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.