AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the second quarter of 2015⁽¹⁾.

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Consolidated revenues in the second quarter of 2015 were NT$92.30 billion, down 3.1% from the previous quarter. Gross profit was NT$11.85 billion, with a gross margin of 12.8%. Operating profit was NT$6.35 billion, with an operating margin of 6.9%. AUO's net profit for the second quarter of 2015 was NT$4.43 billion. Net profit attributable to owners of Company was NT$4.49 billion, with a basic EPS⁽²⁾ of NT$0.47.

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For the first half of 2015, AUO reported consolidated revenues of NT$187.61 billion. Net profit was NT$9.70 billion, with a basic EPS⁽²⁾ of NT$1.00.

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In the second quarter of 2015, large-sized panel⁽³⁾ shipments exceeded 24.90 million units, down by 7.1% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 48.04 million units, representing a 12.6% increase from the first quarter of 2015.

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AUO's unaudited consolidated results for the second quarter of 2015 were highlighted as below:

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• Revenues of NT$92.30 billion
• Operating profit of NT$6.35 billion
• Net profit of NT$4.43 billion
• Basic EPS⁽²⁾ of NT$0.47
• Operating margin was 6.9%
• EBITDA⁽⁴⁾ margin was 20.2%
• Operating margin of Display Segment was 8.0%
• EBITDA⁽⁴⁾ margin of Display Segment was 21.5%

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Looking back to the second quarter, affected by the New Taiwan dollar's appreciation and IT customers' inventory adjustments, which impacted the panel shipment momentum and pricing, AUO's revenue declined by 3.1% quarter-over-quarter. However, AUO has made endeavors to drive the shipments for integrated and high value-added products such as curved TV displays, oTP (on-cell touch panel) for notebook PC, and car displays. As a result, through the continuous enhancements and adjustments of the product portfolio, AUO's operating profit reached NT$6.35 billion with an operating margin of 6.9% for the second quarter, a margin improvement of 3.1 percentage points year-over-year. In addition, EBITDA(4) margin totaled 20.2%, a margin improvement of 2.2 percentage points compared to the same period last year.

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Looking forward to the third quarter, TV and small-and-medium-sized panels are expected to enter into the traditional restocking period. The long-awaited new operating system, Windows 10 is also planned to be released soon. However, the macroeconomic uncertainty remains high. In the face of the future economic fluctuations and market competition, AUO will make full preparation for the challenge. In addition to strengthening the cost and inventory management, the Company will proactively develop products with high growth potential, hoping to expand both the depth and width of its product applications and to capture the growth opportunities in the fast changing markets, with an ultimate goal to sustain the Company's long-term competitive advantages and to maintain a consistent operational performance.

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(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the second quarter of 2015 and the first half of 2015 were calculated based on the weighted average outstanding shares of the first half of 2015 (9,624 million shares).
(3) Large size refers to panels that are 10 inches and above in diagonal measurement.
(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.