AUO Corporation
2Q24 Results

July 31, 2024

Safe Harbor Notice©

•

The statements included in this presentation that are not historical in nature are “forward-lookingstatements”. These forward-looking statements, which may include statements regarding AUO
Corporation’s future results of operations, financial condition or business prospects, are subject
to significant risks and uncertainties and are based on AUO Corporation’s 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 ourindustry; 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 tosuccessfully expand our capacity; our dependence on key personnel; general economic and politicalconditions, including those related to the TFT-LCD industry; possible disruptions in commercial
activities caused by natural and human-induced disasters, including terrorist activity and armedconflict; and fluctuations in foreign currency exchange rates.

•Our 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 orrevise any forward-looking statements, whether as a result of new information, future events orotherwise.

Revenue & Profits
Amount: NT$ Million©

Balance Sheet Highlights
Amount: NT$ Milliona) Short term debt refers to all interest bearing debt maturing within one year.
b) Calculated by dividing the average inventory into the annualized cost of goods sold during such period, then multiplying by 365 days.
c) Net Debt to Equity = (Short Term Debt + Long Term Debt - Cash and Cash Equivalents) / Equity.
©

Cash Flow Highlights
Amount: NT$ Milliona) In addition to cash generated from operating, investing and financing activities, net change in cash
also include effect on currency exchange of foreign subsidiaries.

©

Revenue Breakdown–––©

Mobile PC and Device: including displays for notebook, tablet and mobile phones.
PID and General Display: including displays for public information(PID), industrial PC, ATM, POS, pachinko and medical equipment.
Vertical Business: including Energy, System Design Manufacturing Service, Display HMI Business, LED display, Smart Vertical,
BHTC and others.

Consolidated Shipments & ASP by Area
Unit: K m2, USD/m2–©

2

ASP per square meter in US$ was translated from NT$ based on exchange rates announced by one of AUO’s main banks.

AUO Transformation

2nd Wave to Reduce Volatility

Go Premium
2nd wave

Go Vertical©

Go Premium and Go Vertical• Ecosystem and partner engagement• Expanding light asset business➢ Less CAPEX➢ Lower power consumption• Integrating ESG into business©

Three Pillars For Sustainable Business

MobilitySolution©

VerticalSolution

Display

Definition of New Business Segments

Mobility Solution

BHTC & Display HMI©

Definition of New Business Segments

Vertical Solution

Energy & Smart verticals©

Definition of New Business Segments

Display

LED and System DMS©

Revenue Breakdown under Three Pillars
5%

57%

5%

59%

5%

58%

6%

58%

5%

53%

Others
Display––––
©

19%

18%

16%

17%

17%

19%

20%

2Q23

3Q23

4Q23

1Q24

21%

16%

Vertical Solution
Mobility Solution

26%
2Q24

Mobility Solution: Primarily including integrated solutions in automotive business
Vertical Solution: Primarily including integrated solutions in various fields, such as Smart Retail, Smart Healthcare, Education andEnterprise, other industrial and public displays, Intelligent Service and Energy
Display: Primarily including displays for TV, monitor and notebook, as well as LED display
Others: Primarily including Darwin

Reduce Volatility from Display

5%Others
Display
Vertical Solution
Mobility Solution

57%

21%

18%

2023

©

2024

2025

2026

2027

3Q2024 Business Outlook
Based on our current business outlook, the Company expects:
Mobility Solution➢ Flattish QoQ
Vertical Solution➢ Decrease low to mid-single % QoQ
Display➢ Slight increase QoQ– The above is our current best forecast based on current business outlook and may vary depending on the actual end market conditions.
©

AUO Next with 3 Pillars

Maximizing Display Technology Value and Transform to Provide Solutions

Mobility Solution

Vertical Solution

Display

Green Technology Applied to Empower Sustainability Goal©

Mobility Solution
Automotive Display Market Growth(In unit shipment)

Positioned as a Growth Engine (Rev. >10% CAGR)

From automotive panel supplier to be smart cockpit
solution provider• Reposition the value proposition:➔ More than traditional tier 1 & tier 2• Ecosystem engagement− Panel multi-sourcing & HW/SW integrated solutions
2023

2024

2025

2026

2027

Source: Omdia

Digital (Display) + Analog (Knob)• Display-centric HMI + Climate control + micro-LED− Integration at Core Products + New Technology− Drive the synergy with BHTC
• Global Operation− R&D: Taiwan, Mainland China, Germany, Finland, India− Manuf.: Taiwan, Mainland China, Bulgaria, India, Mexico

Innovate beyond Display through Partnerships
Smart Cockpit

Smart Cockpit
for P.V.

Mobility Service

Smart Cockpit
for C.V.

Passenger
Information System

Smart Cockpit
CAGR ~9%

ClimateControlDigital Out-of-Home

Passenger information system
CAGR ~10%

Telematics+Sensors
HMIDisplayComputing
Software

Display x Design x Experience

Vertical Solution
Smart Retail

Reduce Volatility, Create Green Opportunities

Stable profit from both Smart Verticals and Energy:
Gateway to Smart Living
Display Centric Total Solution Provider (H/W + S/W)
− Smart Retail− Smart Healthcare− Smart Enterprise and Education• Ecosystem & Partners Engagement• Global Operation and Hyper Growth Opportunities•Smart Education
Green Opportunities
Energy− To build a sustainable business− Support RE100 commitment• Intelligent Service• Digital x Green, Carbon Solution•Success Story in the US: Unleashing the Power of our Ecosystem
230 + professionals
AvocorUSA
Explorefor more

50 + accessible active partner network
RiseVision

AUO/ADPUSADLINKUSA

2,000 + channel companies
10,000 + direct, paying customers

ComQi
John
Ryan

US$230million + current sales revenue
Full capability from components all the way to end
customers. Collaborative business model

Co-creation of products and services through ecosystem©

Display Business
Optimizing TV Revenue Mix

Sustainable Cash Generation

Display Industry Becomes More Disciplined•

42% 44% 43% 44%
32%

28% 26%

23%
15%

19%

Focus on stable profitability & customer synergy➢ Optimize product mix➢ Maximize LTPS adoption for AIPC and automotive

Maximize AUO’s Display Expertise2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Improving Supply & Demand
10%

5%

0%

2020

2021

2022

2023

2024

2025

2026

-5%
Demand Area YoY%
Source: Market research

Supply Area YoY%

• Go Premium➢ Micro-LED✓ Superior display quality, transparency, and better
reliability➢ Integrated solutions: Touch, Privacy, A.R.T.
➢ Leveraging AUO’s glass know-how in new applications• Go Green− Green manufacturing− Eco-friendly products/solution

AI-NB Penetration to Increase

mn units

Total AI NBPC

% in NBPC (RHS)

Single layer OLED

200

100%
80%

150

LTPS (FHD)

60%
10040%Tandem OLED

50020%

2024

2025

2026

2027

Source: Market research and AUO estimate
Note: AI NBPC refers to NBs with NPU of at least 40 TOPS

Only for eABC, ABC, APC

2028

0%

LTPS (2.8K)

Source: AUO internal study.
Note: LTPS vs Single layer OLED is based on 13.3” FHD NB panel at OPR 50%
LTPS vs Tandem OLED is based on 13.5” 2.8K NB panel at OPR 50%

AUO Around the GlobeGERMANY• Boeblingen• Lippstadt⚫ USA• Irvine, San Jose, CA• Novi, Farmington, MI⚫ MEXICO• San Miguel de Allende

NETHERLANDS• Amsterdam• Kunshan• Suzhou• Xiamen• Shanghai

FINLAND• Trencin⚫ BULGARIA• Sofia• Bozhurishte• Manufacturing• Business⚫ SINGAPORE• Tampere⚫ SLOVAKIA• Headquarter⚫ CHINA⚫ VIETNAM⚫ INDIA• Pune• Hanoi⚫ SOUTH KOREA• Seoul⚫ JAPAN• Tokyo⚫ TAIWAN• Osaka• Hsinchu• Yokohama• Taipei• Taoyuan• Taichung• Kaohsiung

Q&A
www.auo.com
ir@auo.com

AUO CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
For the Three Months Ended June 30, 2024 and 2023 and March 31, 2024
(Expressed in Millions of New Taiwan Dollars (NTD) except for per share amounts and shares outstanding)

2Q24
NTD

©

%

1Q24
NTD

2Q23
NTD

59,47757,516
1,962

63,321
61,329
1,992

QoQ%

YoY%

25.0
14.7

17.4
7.6

325.9

319.4

Net SalesCost of Goods Sold
Gross Profit(Loss)

74,32865,973
8,355

100.0
88.8

Operating Expenses
Operating Profit(Loss)

8,248
107

11.1
0.1

6,902(4,940)

6,416(4,424)

19.5
－

28.5
－

Net Non-operating Income(Expenses)
Profit(Loss) before Income Tax

179
286

0.2
0.4

1,625
(3,315)160(4,264)(89.0)－

11.4－

Income Tax Benefit(Expense)
Net Profit(Loss)

(520)
(234)

(0.7)
(0.3)

(260)
(3,574)(469)(4,734)(100.3)
93.5(10.7)
95.1

Other Comprehensive Income(Loss)
Total Comprehensive Income(Loss)

5262920.7

1,492(2,082)(1,459)(6,192)(64.7)－－

0.4

Net Profit(Loss) Attributable to:
Owners of Company
Non-Controlling Interests
Net Profit(Loss)

(231)
(3)
(234)

(3,527)(48)(3,574)(4,807)74(4,734)

93.4
94.2

95.2
－

93.5

95.1

Total Comprehensive Income(Loss) Attributable to:
Owners of Company
Non-Controlling Interests
Total Comprehensive Income(Loss)

246
47
292

(2,105)23(2,082)(6,148)(44)(6,192)

－－

99.9
－

－－

(0.46)
7,668(0.63)
7,668

Basic Earnings Per Share
Weighted-Average Shares Outstanding ('M)

(0.03)
7,668

11.2

(0.3)
(0.0)
(0.3)

0.3
0.1
0.4－AUO CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
For the Period Ended June 30, 2024 and 2023
(Expressed in Millions of New Taiwan Dollars (NTD) except for per share amounts and shares outstanding)Year over Year Comparison
1H 2024
1H 2023
NTD%NTD©

Net Sales
Cost of Goods Sold
Gross Profit(Loss)

133,805
123,489
10,316

Operating Expenses
Operating Profit(Loss)

15,149(4,833)(3.6)

Net Non-operating Income(Expenses)Profit(Loss) before Income Tax

1,804(3,029)(2.3)

Income Tax Benefit(Expense)
Net Profit(Loss)(779)(3,808)Other Comprehensive Income(Loss)
Total Comprehensive Income(Loss)

2,019(1,790)(1.3)

Net Profit(Loss) Attributable to:
Owners of Company
Non-Controlling Interests
Net Profit(Loss)(3,758)(51)(3,808)

(0.0)
(2.8)

Total Comprehensive Income(Loss) Attributable to:
Owners of Company
Non-Controlling Interests
Total Comprehensive Income(Loss)(1,860)70(1,790)

Basic Earnings Per Share
Weighted-Average Shares Outstanding ('M)

(0.49)
7,668

100.0
92.3
7.7
11.3

1.3(0.6)(2.8)
1.5(2.8)

(1.4)
0.1
(1.3)

114,509117,374(2,865)
12,697(15,562)

YoY%
16.9
5.2－
19.3
68.9

5(15,557)

38,486.4(263)(15,821)

195.8

80.5

75.9

(798)
(16,619)89.2(15,718)(103)(15,821)

50.8
75.9

(16,418)(201)(16,619)(2.05)
7,665－

76.1

88.7－
89.2

AUO CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
June 30, 2024 and 2023
(Expressed in Millions of New Taiwan Dollars (NTD))ASSETS

June 30, 2024

June 30, 2023

NTD

NTD%

YoY%

NTD%

Cash and Cash Equivalents

71,961

18.0

90,531

22.8(18,570)(20.5)

Notes & Accounts Receivables

30,738

7.7

22,624

5.7

8,114

35.9

Other Current Financial Assets

5,218

1.3

5,630

1.4

(413)

(7.3)

Inventories

33,164

8.3

28,409

7.2

4,755

16.7

Other Current Assets

3,896

1.0

3,512

0.9

384

10.9

144,97736.3

150,706

37.9(5,729)(3.8)

Total Current Assets
Long-term Investments

27,652

6.9

32,6558.2(5,004)(15.3)Net Fixed Assets

170,84342.8

179,65345.2(8,810)(4.9)

10,121

2.5

9,597

2.4

524

5.5

45,838

11.5

24,682

6.2

21,156

85.7

254,453

63.7

246,587

62.1

7,866

3.2

399,430100.0

397,293

100.0

2,137

0.5

655.7

Right-of-use Assets
Other Non-Current Assets
Total Non-Current Assets
Total Assets
LIABILITIESShort-term Borrowings
Notes & Accounts Payable
Current Installments of Long-term Borrowings
Current Financial Liabilities

731

0.2

97

0.0

634

54,09913.5

50,37912.7

3,7207.4

8,082

2.0

14,432

3.6(6,350)(44.0)(85.2)

67

0.0

454

0.1

(387)

Accrued Expense & Other Current Liabilities

37,665

9.4

32,036

8.1

5,628

17.6

Machinery and Equipment Payable

3,988

1.0

7,708

1.9

(3,720)(48.3)

104,632

26.2

105,106

26.5

(474)

(0.5)

Long-term Borrowings

113,783

28.5

99,81525.1

13,968

14.0

Other Non-Current Liabilities

23,987

6.0

23,702

6.0

284

1.2

137,770

34.5

123,51731.1

14,253

11.5

242,40260.7

228,624

57.5

13,778

6.0

Common Stock76,994

19.3

76,99419.4

00.0

Capital Surplus

48,411

12.1

55,87414.1(7,463)(13.4)

Retained Earnings

27,905

7.0

34,398

8.7(6,493)(18.9)

Other Equity(2,350)(0.6)(4,357)

(1.1)

2,007

46.1

Treasury Shares

(240)

(0.1)

(240)

(0.1)

00.0

Non-Controlling Interests

6,308

1.6

6,001

1.5

307

5.1

157,02839.3

168,669

42.5(11,641)(6.9)

399,430100.0

397,293

100.0

2,137

0.5

Total Current Liabilities

Total Non-Current Liabilities
Total Liabilities
EQUITY

Total Equity©

Total Liabilities & Equity

AUO CORPORATION AND SUBSIDIARIES
Consolidated Condensed Cash Flow Statements
For the Period Ended June 30, 2024 and 2023
(Expressed in Millions of New Taiwan Dollars (NTD))

1H 2024

1H 2023

NTD

NTD

Cash Flow from Operating Activities:
Profit(Loss) before Income Taxes(3,029)(15,557)

Depreciation & Amortization

17,517

15,645

Share of Profit of Equity-Accounted Investees

(3)

147

Changes in Working Capital(7,462)(1,490)Changes in Others(2,092)

(903)

4,931

(2,158)Acquisitions of Financial Assets Measured at Fair Value0(93)Disposals of Financial Assets Measured at Fair Value054(264)(342)

Disposals of Financial Assets Measured at Amortized Cost

3000

Disposals of Equity-Accounted Investees

4,2180Acquisitions of Property, Plant and Equipment(13,941)(17,517)

Net Cash Outflow Arising from Acquisition of Subsidiaries(12,556)(7)

Changes in Others(1,042)

3,086(23,284)(14,820)

Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities:

Acquisitions of Financial Assets Measured at Amortized Cost

Net Cash Provided by (Used in) Investing Activities
Cash Flow from Financing Activities:
Increase(Decrease) in Short-term Borrowings

(628)

(29)

Increase(Decrease) in Long-term Borrowings

5,699

27,691

Payment of Lease Liabilities

(376)

(293)

Changes in Others

(34)

90

4,661

27,459Net Cash Provided by (Used in) Financing Activities

1,684

(563)

Net Increase(Decrease) in Cash and Cash Equivalents(12,008)

9,918

Cash and Cash Equivalents at Beginning of Period

83,96980,613

Cash and Cash Equivalents at End of Period

71,961

90,531

Effect of Exchange Rate Changes on Cash and Cash Equivalents©

Tap Into The Possibilities