AUO 6-K

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

April 25, 2003

Commission File Number 001-31335

AU Optronics Corp.
(Translation of registrant’s name into English)

No. 1 Li-Hsin Road 2
Science-Based Industrial Park
Hsinchu, Taiwan
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  X   Form 40-F ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
____

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country“), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ___ No   X  

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
Not applicable





INDEX TO EXHIBITS

Item  
   
1. Taiwan Stock Exchange filing entitled, “FY 2002 Audited Consolidated Financial Statements”, dated April 24, 2003.
2. Taiwan Stock Exchange filing entitled, “FY 2002 Audited Unconsolidated Financial Statements”, dated April 24, 2003.
3. Taiwan Stock Exchange filing entitled, “ FY 2003 Audited Financial Forecast”, dated April 24, 2003
4. Investor Conference Materials entitled, “AU Optronics 2003 1st Quarter Results”, dated April 24, 2003
5. Taiwan Stock Exchange filing entitled, “The Board Resolution to amend the agenda of 2003 Annual General Shareholders' Meeting”, dated April 24, 2003
6. Press release entitled, “AU Optronics Announces 1Q03 Results with Consolidated Net Sales of NT$18,263 Million and Net Income of NT$179 Million ”, dated April 24, 2003
7. Press release entitled, “AU Optronics Announces 2003 Financial Forecast”, dated April 24, 2003




Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  AU Optronics Corp.
     
     
Date: April 24, 2003 By: /s/ Max Weishun Cheng                
    Name: Max Weishun Cheng
Title:    Chief Financial Officer




 

Item 1

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars except par value)

 

   2002 
  2001   
 
                                                                                Amount 
  % 
  Amount 
  %
 
Assets
Current assets:
    Cash and cash equivalents $   25,957,194   20   6,496,268   6  
    Short-term investments 3,231,835   2   5,026,543   5  
    Notes and accounts receivable, net 6,415,061   5   6,592,977   6  
    Receivables from related parties 3,646,403   3   2,428,680   2  
    Inventories 8,509,570   7   9,035,995   9  
    Prepayments and other current assets 1,396,120   1   852,770   1  
    Net deferred tax assets 673,829   1   82,468   -  
             Total current assets 49,830,012   39   30,515,701   29  
Long-term investments 84,330   -   48,581   -  
Property, plant and equipment:
    Land 199,176   -   499,797   1  
    Buildings 10,466,989   8   10,493,783   10  
    Machinery and equipment 70,940,502   55   57,976,432   56  
    Leasehold improvements and other equipment 3,208,361   3   2,315,771   2  
  84,815,028   66   71,285,783   69  
    Less: accumulated depreciation and amortization (25,666,631 ) (20 ) (14,558,288 ) (14 )
    Construction in progress 1,811,779   1   39,180   -  
    Prepayment for purchases of land and equipment 10,085,107   8   8,902,928   9  
             Net property, plant and equipment 71,045,283   55   65,669,603   64  
Intangible assets 2,984,455   2   3,069,633   3  
Other assets:
    Leased assets, net 1,620,792   1   -   -  
    Deferred charges 642,374   1   587,021   1  
    Net deferred tax assets 1,848,180   1   2,439,541   2  
    Refundable deposits 1,018,127   1   894,077   1  
    Miscellaneous 97,849   -   176,238   -  
             Total other assets 5,227,322   4   4,096,877   4  
                 Total assets $ 129,171,402   100   103,400,395   100  

 

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets (continued)

December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars except par value)

 

   2002 
  2001   
 
  Amount 
  % 
  Amount
  %
 
    Liabilities and Stockholders' Equity
Current liabilities:
    Short-term borrowings $        770,444   1   2,095,008   2  
    Commercial paper -   -   449,321   -  
    Accounts payable 11,131,568   9   9,590,359   9  
    Payables to related parties 560,605   -   493,407   1  
    Accrued expenses and other current liabilities 1,983,605   2   1,390,467   1  
    Equipment and construction in progress payable 1,265,983   1   672,743   1  
    Current installments of long-term liabilities 9,492,110   7   4,804,110   5  
            Total current liabilities 25,204,315   20   19,495,415   19  
Long-term liabilities:
    Convertible bonds payable excluding current installments 1,286,882   1   10,028,796   10  
    Bonds payable 996,000   1   1,992,000   2  
    Long-term borrowings excluding current installments 22,457,152   17   23,688,330   23  
    Long-term commercial paper excluding current installments 1,287,611   1   4,168,654   4  
            Total long-term liabilities 26,027,645   20   39,877,780   39  

Other liabilities:

    Accrued pension liabilities 87,192   -   77,294   -  
    Guarantee deposits 24,206   -   2,621   -  
            Total other liabilities 111,398   -   79,915   -  
            Total liabilities 51,343,358   40   59,453,110   58  
Stockholders' equity:
    Capital stock:
       Common stock, NT$10 par value 40,241,945   31   29,705,816   29  
       Certificates exchangeable for common stock 1,012   -   -   -  
  40,242,957   31   29,705,816   29  
    Capital surplus 31,718,116   24   17,998,396   17  
    Retained earnings:
       Legal reserve -   -   232,014   -  
       Unappropriated earnings (accumulated deficit) 6,022,669   5   (3,997,843 ) (4 )
  6,022,669   5   (3,765,829 ) (4 )
    Cumulative translation adjustment 27,151   -   8,902   -  
    Treasury stock (182,849 ) -   -   -  
         Total stockholders' equity 77,828,044   60   43,947,285   42  
                 
            Total Liabilities and Stockholders' Equity $ 129,171,402   100   103,400,395   100  

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Operations

Years ended December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars, except for per share data)

   2002 
  2001
 
  Amount
  %
  Amount
  %
 
Net sales $75,689,165   100   37,588,625   100  
Cost of goods sold 63,606,190   84   40,373,595   107  
         Gross profit (loss) 12,082,975   16   (2,784,970 ) (7 )
Operating expenses :
    Selling 520,016   1   446,233   1  
    Administrative 1,615,959   2   1,203,355   3  
    Research and development 2,233,119   3   1,856,087   5  
  4,369,094   6   3,505,675   9  
         Total operating income (loss) 7,713,881   10   (6,290,645 ) (16 )
Non-operating income:
    Interest income 280,410   1   82,480   -  
    Gain on sale of short-term investments -   -   8,761   -  
    Foreign currency exchange gain, net -   -   484,165   1  
    Other income 261,409   -   128,549   -  
  541,819   1   703,955   1  
Non-operating expenses and losses:
    Interest expense 1,231,514   2   1,120,788   3  
    Short-term investment devaluation loss 650,626   1   -   -  
    Investment loss recognized by equity method 10,475   -   8,059   -  
    Foreign currency exchange loss, net 210,815   -   -   -  
    Other loss 129,510   -   29,014   -  
  2,232,940   3   1,157,861   3  
         Income (loss) before income tax 6,022,760   8   (6,744,551 ) (18 )
Income tax expense (benefit) 91   -   (34,321 ) -  
         Net income (loss) $  6,022,669   8   (6,710,230 ) (18 )
                                                                             Pre-tax    After-tax    Pre-tax    After-tax
Earnings per common share:
    Basic earnings per common share $           1.65   1.65   (2.35 ) (2.34 )
    Diluted earnings per common share $           1.59    1.58       
   
   

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

Years ended December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars, except for per share data)

    Capital Stock
  Retained Earnings
         
    Common
stock
  Certificates
exchangeable
for common
stock
  Capital
surplus
  Legal
reserve
  Uuapprop-
priated
earnings
(accumulated
deficit)
  Cumulative
translation
adjustment
  Treasury
stock
 
Balance at January 1, 2001   $23,849,451   -   16,602,236   55,898   2,256,432   1,215   -  
Issuance of common stock for cash   3,773,365   -   4,126,635   -   -   -   -  
Appropriation for legal reserve   -   -   -   176,116   (176,116 ) -   -  
Transfer of retained earnings to common stock   1,375,000   -   -   -   (1,375,000 ) -   -  
Transfer of employees' profit sharing to common stock   83,000   -   -   -   (83,000 ) -   -  
Directors' and supervisors' remuneration   -   -   -   -   (8,303 ) -   -  
Transfer of capital surplus to common stock   625,000   -   (625,000 ) -   -   -   -  
Net loss for 2001   -   -   -   -   (6,710,230 ) -   -  
Net loss of Unipac transferred to capital surplus   -   -   (2,105,475 ) -   2,098,374   (2,937 ) -  
Cumulative translation adjustment   -   -   -   -   -   10,624   -  
 
Balance at December 31, 2001   29,705,816   -   17,998,396   232,014   (3,997,843 ) 8,902   -  
Issuance of common stock for cash   5,000,000   -   14,170,256   -   -   -   -  
Transfer of legal reserve to unappropriated earnings   -   -   -   (232,014 ) 232,014   -   -  
Transfer of capital surplus to unappropriated earnings   -   -   (3,765,829 ) -   3,765,829   -   -  
Net income for 2002   -   -   -   -   6,022,669   -   -  
Purchase of treasury stock   -   -   -   -   -   -   (182,849 )
Cumulative translation adjustment   -   -   -   -   -   18,249   -  
Convertible bonds converted to common stock   5,536,129   1,012   3,315,293   -   -   -   -  
Balance at December 31, 2002   $40,241,945   1,012   31,718,116   -   6,022,669   27,151   (182,849 )
 

 

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars)

    2002   2001  
 
Cash flows from operating activities:  
    Net income (loss)   6,022,669   (6,710,230 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
       Depreciation and amortization   12,989,922   8,880,322  
       Provision for redemption of convertible bonds and amortizing of commercial paper discount   114,548   71,691  
       Loss from disposal of property, plant and equipment, and provision for allowance for doubtful  
          accounts   29,127   10,552  
       Investment loss   661,101   8,059  
       Provision for inventory devaluation   -   235,094  
       Unrealized exchange loss (gain), net   348,155   (270,375 )
       Increase in notes and accounts receivable (including related parties)   (1,203,910 ) (5,930,234 )
       Decrease (increase) in inventories   526,425   (2,124,168 )
       Increase in prepayments and other current assets   (484,340 ) (157,868 )
       Increase in deferred tax assets   -   (36,792 )
       Increase in notes and accounts payable (including related parties)   1,321,956   7,339,717  
       Increase (decrease) in accrued expenses and other current liabilities   486,166   (138,204 )
       Increase in accrued pension liabilities   9,898   38,190  
 
           Net cash provided by operating activities   20,821,717   1,215,754  
Cash flows from investing activities:  
    Decrease (increase) in short-term investments   1,144,082   (786,502 )
    Acquisition of property, plant and equipment   (18,035,305   (13,987,290 )
    Proceeds from disposal of property, plant and equipment   78,719   1,514  
    Increase in long-term equity investments   (46,586 ) -  
    Decrease in restricted cash in bank   97,342   74,549  
    Increase in intangible assets   (840,787 ) (338,495 )
    Increase in other assets   (522,419 ) (263,257 )
 
           Net cash used in investing activities   (18,124,954 ) (15,299,481 )
Cash flows from financing activities:  
    Decrease in short-term borrowings   (1,815,517 ) (5,290,961 )
    Increase (decrease) in guarantee deposits   21,585   (74,099 )
    Repayment of long-term borrowings and bonds payable   (5,104,110 ) (529,909 )
    Increase in long-term borrowings   4,664,932   14,800,000  
    Purchase of treasury stock   (182,849 ) -  
    Issuance of common stock for cash   19,170,256   7,900,000  
    Bond issuance costs   -   (7,219 )
    Directors' and supervisors' remuneration   -   (18,341 )
 
           Net cash provided by financing activities   16,754,297   16,779,471  
Effect of exchange rate change on cash   9,866   5,205  
Net increase in cash and cash equivalents   19,460,926   2,700,949  
Cash and cash equivalents at beginning of year   6,496,268   3,795,319  
Cash and cash equivalents at end of year   25,957,194   6,496,268  
Supplementary disclosures of cash flow information:  
    Cash paid for interest expense   $   1,253,983   1,079,709  
 
    Cash paid for income taxes   $        19,343   4,986  
 
Additions to property, plant and equipment:  
    Increase in property, plant and equipment   $ 18,589,628   12,778,584  
    Decrease (increase) in equipment acquisitions payable   (554,323 ) 1,208,706  
 
    Cash paid   $ 18,035,305   13,987,290  
 
Supplementary disclosure of non-cash investing and financing activities  
    Current installments of long-term liabilities   $   9,492,110   4,804,110  
 
    Convertible bonds applying for conversion   $   8,852,434   -  
 

 

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP.

Balance Sheets

December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars)

  2002
2001
Assets Amount
%
Amount
%
Current assets:
    Cash and cash equivalents $   25,659,031   20   6,442,931   6  
    Short-term investments 3,181,835   3   5,026,543   5  
    Notes and accounts receivable, net 5,287,285   4   6,560,672   6  
    Receivables from related parties 4,872,643   4   2,482,100   2  
    Inventories 8,018,867   6   9,035,995   9  
    Prepayments and other current assets 1,342,103   1   822,947   1  
    Deferred tax assets 673,829   1   82,468   -  
             Total current assets 49,035,593   39   30,453,656   29  
Long-term investments 1,114,941   1   259,239   -  
Property, plant and equipment:
    Land 199,176   -   499,797   -  
    Buildings 9,969,307   8   10,493,783   10  
    Machinery and equipment 69,250,413   55   57,976,432   56  
    Other equipment 3,050,299   2   2,310,154   2  
  82,469,195   65   71,280,166   68  
    Less: accumulated depreciation (25,517,927 ) (20 ) (14,557,938 ) (14 )
    Construction in progress 1,375,553   1   39,180   -  
    Prepayment for purchases of land and equipment 10,051,761   8   8,762,136   9  
             Net property, plant and equipment 68,378,582   54   65,523,544   63  
Intangible assets - patents 2,984,455   2   3,069,633   3  
Other assets
    Leased assets, net 1,620,792   1   -   -  
    Miscellaneous 45,649   -   26,696   -  
    Deferred charges 527,765   1   568,812   1  
    Deferred tax assets 1,848,180   1   2,439,541   3  
    Restricted cash in bank 52,200   -   149,542   -  
    Refundable deposits 1,013,391   1   892,529   1  
             Total other assets 5,107,977   4   4,077,120   5  
                 Total assets $ 126,621,548   100   103,383,192   100  

 

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP.

Balance Sheets (continued)

December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars except par value)

   2002 
  2001   
 
                 Liabilities and Stockholders' Equity Amount
  %
  Amount
  %
 
Current liabilities:
    Short-term borrowings -   -   2,095,008   2  
    Commercial paper -   -   449,321   -  
    Accounts payable 9,740,068   8   9,585,942   9  
    Payables to related parties 1,484,526   1   499,607   -  
    Accrued expenses and other current liabilities 1,889,386   1   1,385,420   2  
    Equipment and construction in progress payable 913,638   1   659,670   1  
    Current installments of long-term liabilities 9,492,110   8   4,804,110   5  
             Total current liabilities 23,519,728   19   19,479,078   19  
Long-term liabilities:
    Convertible bonds payable excluding current installments 1,286,882   1   10,028,796   10  
    Bonds payable 996,000   1   1,992,000   2  
    Long-term borrowings excluding current installments 21,592,220   17   23,688,330   23  
    Long-term commercial paper excluding current installments 1,287,611   1   4,168,654   4  
             Total long-term liabilities 25,162,713   20   39,877,780   39  
Other liabilities 111,063   -   79,049   -  
             Total liabilities 48,793,504   39   59,435,907   58  
Stockholders' equity:
    Capital stock, NT$10 par value:
       Common stock 40,241,945   32   29,705,816   29  
       Certificates exchangeable for common stock 1,012   -   -   -  
  40,242,957   32   29,705,816   29  
    Capital surplus:
       Premiums on capital stock 25,020,255   19   10,850,000   10  
       Excess from conversion of convertible bonds 3,315,294   3   -   -  
       Gain on disposal of property plant and equipment -   -   99   -  
       Excess from merger 3,382,567   3   7,148,297   7  
  31,718,116   25   17,998,396   17  
    Retained earnings:
       Legal reserve -   -   232,014   -  
       Unappropriated retained earnings (accumulated deficit) 6,022,669   4   (3,997,843 ) (4 )
  6,022,669   4   (3,765,829 ) (4 )
    Cumulative translation adjustment 27,151   -   8,902   -  
    Treasury stock (182,849 ) -   -   -  
             Total stockholders' equity 77,828,044   61   43,947,285   42  
             Total Liabilities and Stockholders' Equity $ 126,621,548   100   103,383,192   100  

 

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP.

Statements of Operations

Years ended December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars, except for per share data)

   2002 
  2001  
 
  Amount 
  % 
  Amount 
  %
Net sales $75,507,279   100   37,588,625   100  
Cost of goods sold 62,766,229   83   40,373,595   107  
             Gross profit (loss) 12,741,050   17   (2,784,970 ) (7 )
Operating expenses:
    Selling 500,298   -   438,223   1  
    Administrative 1,400,729   2   1,203,301   3  
    Research and development 2,233,119   3   1,856,087   5  
  4,134,146   5   3,497,611   9  
             Total operating income (loss) 8,606,904   12   (6,282,581 ) (16 )
Non-operating income:
    Interest income 275,413   -   81,029   -  
    Cash dividend -   -   32,371   -  
    Foreign currency exchange gain, net -   -   484,275   1  
    Other income 256,695   -   103,534   -  
  532,108   -   701,209   1  
Non-operating expenses and losses:
    Interest expense 1,218,939   2   1,120,788   3  
    Short-term investment permanent impairment loss 650,626   1   -   -  
    Investment loss recognized by equity method 896,278   1   13,376   -  
    Loss on sale of investments 59,163   -   -   -  
    Foreign currency exchange loss, net 223,179   -   -   -  
    Other loss 68,130   -   29,015   -  
  3,116,315   4   1,163,179   3  
             Income (loss) before income tax 6,022,697   8   (6,744,551 ) (18 )
Income tax expense (benefit) 28   -   (34,321 ) -  
             Net income (loss) 6,022,669   8   (6,710,230 ) (18 )
                                                                                Pre-tax  After-tax    Pre-tax  After-tax
Earnings per common share:
    Basic earnings per common share $           1.65   1.65   (2.35 ) (2.34 )
    Diluted earnings per common share $           1.59    1.58       
   

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP.

Statements of Changes in Stockholders’ Equity

Years ended December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars)

    Capital Stock
  Retained Earnings
             
    Common
stock
  Certificates
exchangeable
for common
stock
  Capital
surplus
  Legal
reserve
  Uuapprop-
priated
earnings
(accumulated
deficit)
  Cumulative
translation
adjustment
  Treasury
stock
  Total
 
Balance at January 1, 2001   $23,849,451   -   16,602,236   55,898   2,256,432   1,215   -   42,765,232  
Issuance of common stock for cash   3,773,365   -   4,126,635   -   -   -   -   7,900,000  
Appropriation for legal reserve   -   -   -   176,116   (176,116 ) -   -   -  
Transfer of retained earnings to common stock   1,375,000   -   -   -   (1,375,000 ) -   -   -  
Transfer of employees' profit sharing to common stock   83,000   -   -   -   (83,000 ) -   -   -  
Directors' and supervisors' remuneration   -   -   -   -   (8,303 ) -   -   (8,303 )
Transfer of capital surplus to common stock   625,000   -   (625,000 ) -   -   -   -   -  
Net loss for 2001   -   -   -   -   (6,710,230 ) -   -   (6,710,230 )
Net loss of Unipac transferred to capital surplus   -   -   (2,105,475 ) -   2,098,374   (2,937 ) -   (10,038 )
Cumulative translation adjustment   -   -   -   -   -   10,624   -   10,624  
 
Balance at December 31, 2001   29,705,816   -   17,998,396   232,014   (3,997,843 ) 8,902   -   43,947,285  
Issuance of common stock for cash   5,000,000   -   14,170,256   -   -   -   -   19,170,256  
Transfer of legal reserve to unappropriated earnings   -   -   -   (232,014 ) 232,014   -   -   -  
Transfer of capital surplus to unappropriated earnings   -   -   (3,765,829 ) -   3,765,829   -   -   -  
Net income for 2002   -   -   -   -   6,022,669   -   -   6,022,669  
Purchase of treasury stock   -   -   -   -   -   -   (182,849 ) (182,849 )
Cumulative translation adjustment   -   -   -   -   -   18,249   -   18,249  
Convertible bonds converted to common stock   5,536,129   1,012   3,315,293   -   -   -   -   8,852,434  
 
Balance at December 31, 2002   $40,241,945   1,012   31,718,116   -   6,022,669   27,151   (182,849 ) 77,828,044  
 

 

English Translation of Financial Statements Originally Issued in Chinese

AU OPTRONICS CORP.

Statements of Cash Flows

Years ended December 31, 2002 and 2001
(Expressed in thousands of New Taiwan dollars)

    2002   2001  
 
Cash flows from operating activities:  
    Net income (loss)   $   6,022,669   (6,710,230 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
       Depreciation and amortization   12,829,963   8,955,967  
       Provision for redemption of convertible bonds and amortizing of commercial paper  
          discount   114,548   71,691  
       Loss from disposal of property, plant and equipment, and provision for allowance for  
          doubtful accounts   9,017   23,082  
       Provision for inventory devaluation   -   235,094  
       Unrealized exchange loss (gain), net   348,155   (270,375 )
       Investment loss   1,546,904   13,376  
       Increase in notes and accounts receivable (including related parties)   (1,261,812 ) (5,951,350 )
       Decrease (increase) in inventories   1,017,128   (2,124,168 )
       Increase in prepayments and other current assets   (460,092 ) (128,141 )
       Increase in deferred tax assets   -   (36,792 )
       Increase in notes and accounts payable (including related parties)   852,594   7,341,500  
       Increase (decrease) in accrued expenses and other current liabilities   396,994   (146,279 )
       Increase in accrued pension liabilities   9,898   38,190  
 
           Net cash provided by operating activities   21,425,966   1,311,565  
Cash flows from investing activities:  
    Decrease (increase) in short-term investments   1,194,082   (786,502 )
    Acquisition of property, plant and equipment   (15,909,900 ) (13,867,201 )
    Proceeds from disposal of property, plant and equipment   290,474   1,514  
    Increase in long-term equity investments   (1,733,731 ) (179,384 )
    Decrease in restricted cash in bank   97,342   74,549  
    Increase in deferred charges and intangible assets   (1,135,495 ) (673,495 )
    Decrease (increase) in refundable deposits   (120,862 ) 8,351  
 
           Net cash used in investing activities   (17,318,090 ) (15,422,168 )
Cash flows from financing activities:  
    Decrease in short-term borrowings   (2,585,961 ) (5,290,961 )
    Increase (decrease) in guarantee deposits   22,116   (74,965 )
    Repayment of long-term borrowings and bonds payable   (5,104,110 ) (529,909 )
    Increase in long-term borrowings   3,800,000   14,800,000  
    Purchase of treasury stock   (182,849 ) -  
    Issuance of common stock for cash   19,170,256   7,900,000  
    Directors' and supervisors' remuneration   -   (18,341 )
 
           Net cash provided by financing activities   15,119,452   16,785,824  
 
Effect of exchange rate change on cash   (11,228 ) 5,205  
Net increase in cash and cash equivalents   19,216,100   2,680,426  
Cash and cash equivalents at beginning of year   6,442,931   3,762,505  
Cash and cash equivalents at end of year   25,659,031   6,442,931  
Supplementary disclosures of cash flow information:  
    Cash paid for interest expense (excluding capitalized interest)   $   1,242,947   1,079,709  
 
    Cash paid for income taxes   $        19,280   4,986  
 
Additions to property, plant and equipment:  
    Increase in property, plant and equipment   $ 16,124,951   12,651,390  
    Decrease (increase) in equipment acquisitions payable   (215,051 ) 1,215,811  
 
    Cash paid   $ 15,909,900   13,867,201  
 
Supplementary disclosure of non-cash investing and financing activities  
    Current installments of long-term liabilities   $   9,492,110   4,804,110  
 
    Convertible bonds applying for conversion   $   8,852,434   -  

 

Item 2

AU OPTRONICS CORP.
UNCONSOLIDATED BALANCE SHEET
As of Mar 31, 2003 and 2002
(Figures in Millions of New Taiwan dollars (NTD) and U.S. dollars (USD))

  As of Mar 31, 2003   As of Mar 31, 2002   YoY  
 
 
 
 
ASSETS USD   NTD   %   NTD   %   Change   %  
 
 
 
 
 
 
 
Cash and Cash Equivalents 509   17,701   14.3   4,274   4.2   13,428   314.2  
Short-term Investment 92   3,182   2.6   3,982   3.9   (799 ) (20.1 )
Notes & Accounts Receivables 336   11,682   9.4   12,556   12.2   (874 ) (7.0 )
n I ventories 213   7,393   6.0   8,231   8.0   (838 ) (10.2 )
Other Current Assets 57   1,993   1.6   900   0.9   1,093   121.4  
 
 
 
 
 
 
 
 
   Total Current Assets 1,207   41,952   33.9   29,943   29.1   12,009   40.1  
 
 
 
 
 
 
 
 
Long-term Investments 49   1,695   1.4   762   0.7   933   122.3  
 
 
 
 
 
 
 
 
Fixed Assets 2,896   100,619   81.2   82,291   80.1   18,328   22.3  
Less Accumulated Depreciation (817 ) (28,379 ) (22.9 ) (17,140 ) (16.7 ) (11,239 ) 65.6  
 
 
 
 
 
 
 
 
   Net Fixed Assets 2,079   72,240   58.3   65,151   63.4   7,090   10.9  
 
 
 
 
 
 
 
 
Other Assets 230   7,994   6.4   6,877   6.7   1,117   16.2  
 
 
 
 
 
 
 
   Total Assets 3,565   123,881   100.0   102,733   100.0   21,148   20.6  
 
 
 
 
 
 
 
 
                             
LIABILITIES                            
                           
Accounts Payable 354   12,310   9.9   11,858   11.5   452   3.8  
Current Installments of Long-term Liabilities 273   9,486   7.7   5,768   5.6   3,717   64.4  
Other Current Liabilities 50   1,740   1.4   1,726   1.7   14   0.8  
 
 
 
 
 
 
 
 
   Total Current Liabilities 677   23,535   19.0   19,352   18.8   4,183   21.6  
 
 
 
 
 
 
 
 
Long-term Borrowings 583   20,242   16.4   22,717   22.1   (2,475 ) (10.9 )
Long-term Commercial Paper 0   0   0 . 0 2,774   2.7   (2,774 ) (100.0 )
Bonds and Convertible Bonds Payable 58   2,016   1.6   7,347   7.2   (5,331 ) (72.6 )
Other Long-term Liabilities 4   123   0.1   88   0.1   35   40.3  
 
 
 
 
 
 
 
 
   Total Liabilities 1,322   45,916   37.1   52,278   50.9   (6,362 ) (12.2 )
 
 
 
 
 
 
 
 
                             
SHAREHOLDERS' EQUITY                            
                           
Common Stock 1,159   40,259   32.5   32,520   31.7   7,739   23.8  
Capital Surplus 913   31,728   25.6   19,657   19.1   12,071   61.4  
Retained Earnings 178   6,202   5.0   (1,732 ) (1.7 ) 7,933   (458.2 )
Cumulative Translation Adjustment 0   28   0.0   9   0.0   18   196.9  
Treasury Stock (7 ) (251 ) (0.2 ) 0   0.0   (251 ) 0.0  
 
 
 
 
 
 
 
 
   Total Stockholders' Equity 2,243   77,965   62.9   50,455   49.1   27,510   54.5  
 
 
 
 
 
 
 
 
Total Liabilities & Stockholders' Equity 3,565   123,881   100.0   102,733   100.0   21,148   20.6  
 
 
 
 
 
 
 
 

Note: New Taiwan dollars amounts have been translated into U.S. dollars at the rate of NT$ 34.75 per U.S. dollar at the end of Mar, 2003

 

AU OPTRONICS CORP.
UNCONSOLIDATED INCOME STATEMENT
For the Three Months Ended Mar 31, 2003 and 2002 and Dec 31, 2002
(Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD)
Except for Per Share Data and Shares Outstanding)

      Year over Year Comparison           Sequential Comparison      
 
 
 
  1Q 2003       % of   1Q 2002   YoY   1Q 2003       % of   4Q 2002   QoQ  
  USD   NTD   Sales   NTD   Chg %   USD   NTD   Sales   NTD   Chg %  
 
 
 
 
 
 
 
 
 
 
 
Net Sales 494   17,115   100.0   19,749   (13.3 ) 494   17,115   100.0   15,964   7.2  
Cost of Goods Sold 447   15,491   90.5   16,442   (5.8 ) 447   15,491   90.5   14,912   3.9  
 
 
 
 
 
 
 
 
 
 
 
      Gross Profit (Loss) 47   1,624   9.5   3,307   (50.9 ) 47   1,624   9.5   1,052   54.4  
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses                                        
      Selling 5   151   0.9   106   42.9   5   151   0.9   106   42.6  
      Administrative 14   478   2.8   329   45.1   14   478   2.8   392   21.7  
      Research and Development 17   598   3.5   489   22.3   17   598   3.5   603   (0.9 )
 
 
 
 
 
 
 
 
 
 
 
Total Operating Expenses 36   1,227   7.2   924   32.8   36   1,227   7.2   1,102   11.4  
 
 
 
 
 
 
 
 
 
 
 
Total Operating Income (Loss) 11   397   2.3   2,383   (83.3 ) 11   397   2.3   (50 ) (891.0 )
 
 
 
 
 
 
 
 
 
 
 
                                         
Net Non-Operating Income (Expenses) (6 ) (218 ) (1.3 ) (349 ) (37.5 ) (6 ) (218 ) (1.3 ) (727 ) (70.0 )
 
 
 
 
 
 
 
 
 
 
 
                                         
Income (Loss) before Income Tax 5   179   1.0   2,034   (91.2 ) 5   179   1.0   (778 ) -  
 
 
 
 
 
 
 
 
 
 
 
                                         
Income Tax (Expense) Benefit 0   0   0.0   0   0.0   0   0   0.0   0   -  
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) 5   179   1.0   2,034   (91.2 ) 5   179   1.0   (778 ) -  
 
 
 
 
 
 
 
 
 
 
 
                                         
Basic Earnings (Loss) Per Share 0.0013   0.04       0.63   (92.9 ) 0.0013   0.04       (0.21 ) -  
 
 
     
 
 
 
     
 
 
Basic Earnings (Loss) Per ADS 0.0129   0.45       6.34   (93.0 ) 0.0129   0.45       (2.14 ) -  
 
 
     
 
 
 
     
 
 
Weighted Average Number     4,014       3,206           4,014       3,640      
   of Shares Outstanding ('M)    
     
         
     
     
                                         
Note: (1) New Taiwan dollars amounts have been translated into U.S. dollars at the weighted average rate of NT$34.648 per U.S. dollar for the first quarter of 2003
  (2) 1 ADR equals 10 ordinary shares

 

AU OPTRONICS CORP.
UNCONSOLIDATED STATEMENT OF CASH FLOWS
For the 3 Months Ended Mar 31, 2003 and 2002
(Figures in Million of New Taiwan dollars (NTD) and U.S. dollars (USD))

  2003       2002  
 
 
 
  USD   NTD   NTD  
 
 
 
 
Cash Flows from Operating Activities:            
   Net Income 5   179   2,034  
   Depreciation & Amortization 98   3,403   2,917  
   Provision (Reversal) for Inventory Devaluation 0   0   (35 )
   Long-term Investment Loss under Equity Method 0   1 0 22  
   Changes in Working Capital & Others (44 ) (1,516 ) (1,427 )
 
 
 
 
   Net Cash Provided by (Used in) Operating Activities 60   2,076   3,510  
             
Cash Flows from Investing Activities:            
   Decrease (Increase) in Short-term Investments (4 ) (154 ) 1,045  
   Acquisition of Property, Plant and Equipment (180 ) (6,269 ) (2,063 )
   Proceeds from Disposal of Property, Plant and Equipment 6   213   44  
   Increase in Long-term Equity Investments (13 ) (436 ) (524 )
   Decrease (Increase) in Restricted Cash in Bank 1   2 0 80  
   Increase in Intangible Assets (15 ) (524 ) (63 )
   Decrease (Increase) in Other Assets 2   77   (1 )
 
 
 
 
   Net Cash Used in Investing Activities (204 ) (7,073 ) (1,482 )
             
Cash Flows from Financing Activities:            
   Decrease in Short-term Borrowings 0   0   (2,544 )
   Increase in Guarantee Deposits 0   0   0  
   Increase (Decrease) in Long-term Borrowings (83 ) (2,899 ) (1,655 )
   Issuance of Common Stock for Cash 0   0   0  
   Directors' and Supervisors' Remuneration 0   0   0  
   Increase in Treasury Stock (2 ) (68 ) 0  
 
 
 
 
   Net Cash Provided by Financing Activities (85 ) (2,967 ) (4,199 )
             
Effect of Exchange Rate Change on Cash 0   6   1  
 
 
 
 
Net Increase (Decrease) in Cash and Cash Equivalents (229 ) (7,958 ) (2,169 )
 
 
 
 
Cash and Cash Equivalents at Beginning of Period 738   25,659   6,443  
Cash and Cash Equivalents at End of Period 509   17,701   4,274  
 
 
 
 

Note: New Taiwan dollars amounts have been translated into U.S. dollars at end the rate of NT$34.75 per U.S. dollar at the of Mar, 2003

Item 3


AU Optronics Corp.
April 24, 2003
English Language Summary


Subject: FY 2003 Audited Financial Forecast
Regulation: Published pursuant to Article 2-13 of the Taiwan Stock Exchange’s Operating Procedures for the Publication of Material Information by Listed Companies

Content:

1) Fiscal year of the financial forecast: 2003
2) Date of preparation, correction, updating of the financial forecast: 2003/04/24
3) Reason for preparation of the financial forecast: 1.Cumulative changes reached one-third or more within the same term of the Board; 2. Within 3 years after the year of IPO; 3. Rights issue in 2002
4) Name of the reviewing CPA and date of review: Alfred S. H. Wei and Alfred Chen of KPMG Certified Public Accountants on April 21, 2003.
5) Date of the board of directors resolution: 2003/04/24
6) Date of public announcement: 2003/04/24
7) Monetary amounts of major accounting items of the balance sheet and income statement:

Balance Sheet   2003 (Forecast)   2002 (Actual)   2001 (Actual)  
Current assets   $  36,884,194   49,035,593   30,453,656  
Long-term investments   2,115,589   1,114,941   259,239  
Net property, plant and equipment   91,105,339   68,378,582   65,523,544  
Intangible assets - patents   2,278,039   2,984,455   3,069,633  
Other assets   4,781,396   5,107,977   4,077,120  
Current liabilities   28,162,820   23,519,728   19,479,078  
Long-term liabilities   30,330,660   25,162,713   39,877,780  
Other liabilities   111,135   111,063   79,049  
Common stock   42,702,050   40,242,957   29,705,816  
Capital surplus   31,729,742   31,718,116   17,998,396  
Retained earnings:   4,100,999   6,022,669   (3,765,829 )
Cumulative translation adjustment   27,151   27,151   8,902  
Treasury stock   -   (182,849 ) -  
Total assets   137,164,557   126,621,548   103,383,192  
Total liability   58,604,615   48,793,504   59,435,907  
Total stockholders’ equity   78,559,942   77,828,044   43,947,285  
Net worth per share  
 
Income Statement   2003 (Forecast)   2002 (Actual)   2001 (Actual)  
Net sales   $  89,840,100   75,507,279   37,588,625  
Cost of goods sold   80,455,539   62,766,229   40,373,595  
Gross profit (loss)   9,384,561   12,741,050   (2,784,970 )
Operating expenses:   5,712,692   4,134,146   3,497,611  
Operating income (loss)   3,671,869   8,606,904   (6,282,581 )
Non-operating income:   278,375   532,108   701,209  
Non-operating expenses and losses:   1,370,244   3,116,315   1,163,179  
Income (loss) before income tax   2,580,000   6,022,697   (6,744,551 )
Income tax expense (benefit)   -   28   (34,321 )
Net income (loss)   2,580,000   6,022,669   (6,710,230 )

8) Reason for the correction or update and monetary amount affected: N/A
9) CPA review opinion (please enter: “Standard (or Adverse or Disclaimer of) Review report”; if a non-standard review report, please further enter the explanation section and the conclusion of the review opinion): Standard Review report
10) Any other matters that need to be specified: N/A

Item 4 

Agenda  
     
n   Welcome and Introduction  
     
n   1Q’03 Financial Results
  (unaudited) 		Max Cheng
   
     
n   Remarks K.Y. Lee
     
n  Q&A K.Y. Lee et. al.

Safe Harbor Notice

The statements included in this presentation that are not historical in nature are “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements, which may include statements regarding AU Optronics’future results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on AU Optronics’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 our industry; 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 to successfully expand our capacity; our dependence on key personnel; general economic and political conditions, including those related to the TFT-LCD industry; possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.

Additional information as to these and other factors that may cause actual results to differ materially from AU Optronics’forward-looking statements can be found in AU Optronics’registration statement on Form F-1 filed with the United States Securities and Exchange Commission on May 15, 2002.

1Q 2003 Results Highlights
– Profitability Analysis

Amount : NT$ Million 1Q'03(a)   4Q'02(a)   %Change
 
 
 
Net Sales 18,263   16,140   13.2 %
Gross Profit 1,890   662   185.6 %
Operating Profit (Loss) 582   (574 ) –  
Net Profit (Loss) 179   (778 ) –  
EBITDA 4,145   2,862   44.8 %
EBITDA Margin 22.7 % 17.7 %    

(a) Unaudited, prepared by AU Optronics Corp. on a consolidated basis

 

1Q 2003 Income Statement – QoQ Comparison

    1Q'03   4Q'02   QoQ  
    Consolidated(a)   Consolidated(a)   Change %  
   
 
 
 
Net Sales   18,263   100.0 % 16,140   100.0 % 13.2 %
Cost of Goods Sold   (16,373 ) -89.7 % (15,479 ) -95.9 % 5.8 %
   
 
 
 
 
 
   Gross Profit   1,890   10.3 % 662   4.1 % 185.6 %
Operating Expenses (1,308 ) -7.2 % (1,236 ) -7.7 % 5.8 %
 
 
 
 
 
 
   Operating Income   582   3.2 % (574 ) -3.6 % –  
Net Non-operating Income (Exp.) (403 ) -2.2 % (203 ) -1.3 % 98.0 %
 
 
 
 
 
 
Income before Tax 179   1.0 % (778 ) -4.8 % –  
nco I me Tax Credit (Exp.) 0   0.0 % 0   0.0 % –  
 
 
 
 
 
 
   Net Income   179   1.0 % (778 ) -4.8 % –  
   
 
 
 
 
 
      Basic EPS (NT $)(b) 0.04       (0.29 )     –  
Unit Shipment (Million)            
   Large Size Panels 2.3   2.2   5.9%  
         
 
   Small & Medium Panels (A/V) 2.6   3.1   -15.0 %
         
 
(a)    Unaudited, prepared by AU Optronics Corp. on a consolidated basis
(b) Total weighted average outstanding shares of 3,640 million and 4,014 million were used in Basic EPS calculation for 4Q’02 and 1Q’03, respectively

  5

1Q 2003 Balance Sheet & Cash Flow
– QoQ Comparison

Amount : NT $ Million                    
    1Q'03   4Q'02   QoQ  
    Consolidated(a)   Consolidated   Change %
   
 
 
 
Cash & Cash Equivalents 18,032   14.2 % 25,957   20.1 % -30.5 %
ST Inv. / Marketable Securities 3,182   2.5 % 3,232   2.5 % -1.5 %
LT Debt   23,356   18.5 % 26,028   20.1 % -10.3 %
Equity   77,848   61.5 % 77,828   60.3 % 0.0 %
Total Assets   126,588   100.0 % 129,171   100.0 % -2.0 %
Debt to Equity (Fully Diluted) 40.0 %     43.3 %        
Net Debt to Equity (Fully Diluted) 17.2 %     10.5 %        
Depreciation & Amortization 3,498       3,436       1.8 %
Capital Expenditure 6,747       6,001       12.4 %
Inventory 7,839       8,510       -7.9 %

(a) Unaudited, prepared by AU Optronics Corp. on a consolidated basis

 

Quarterly Consolidated Large Size Panel
Shipment & Blended ASP

(a) All figures are unaudited, prepared by AU Optronics Corp. on a consolidated basis
(b) Consolidated figures before September 1, 2001 are combined from AU Optronics Corp. (formerly known as Acer Display Technology, Inc.) and Unipac Optoelectronics Corporation


7

Quarterly Sales Breakdown by Application

(a) All figures are unaudited, prepared by AU Optronics Corp. on a consolidated basis
(b) Consolidated figures before September 1, 2001 are combined from AU Optronics Corp. (formerly known as Acer Display Technology, Inc.) and Unipac Optoelectronics Corporation


8

2003 Installed Capacity by Fab

  Substrate Size 12/2002   3/2003   12/2003(F)  
FAB (mm) Capacity   Capacity   Capacity  
L2 (G3.5) 610 x 720 45,000   45,000   45,000  
               
L3 (G3.5) 610 x 720 35,000   35,000   5,000 LTPS  
            25,000 a-Si  
L5 (G3.5) 600 x 720 60,000   60,000   60,000  
               
L6 (G4.0) 680 x 880 60,000   60,000   60,000  
               
L8A (G5.0) 1100 x 1250 n.a.   4,000   50,000  

Tentative Fab L8 Input Schedule

n Fab L8A (G5 1100 x 1250): 50K substrates / month
n 10/2002: Equipment Move-In
n 12/8/2002: First G5 Mother Glass in Taiwan
n 2/27/2003: First G5 26”W LCD TV panel in Taiwan
n 3/2003: First Commercial Production Commenced in Taiwan
n Projected G5 Input Schedule:
    Unit: K (1000 substrates)
By end of L8A L8B L8
2Q’03 20 -- 20
4Q’03 50 -- 50
1H’04 50 30 80
2H’04 50 70 120

 

2003 Financial Forecast (Consolidated)

Amount : NT$ Billion Except Per Share Data 2003 Forecast(a)
 
  Forecast   Margin  
 
Net Sales 96.27   100.0 %
Gross Profit 9.85   10.2 %
Operating Profit 3.83   4.0 %
Net Profit 2.58   2.7 %
 
EBITDA 22.92   23.8 %
Basic EPS (NT$)(b) 0.61      
Fully Diluted EPS (NT$)(b) 0.60      
Forecasted Unit Shipment (Million)        
       
Large Size Panels 11.7      
Small & Medium Panels (A/V) 23.0      

(a) All figures are prepared by AU Optronics Corp. on a consolidated basis, without accountant review
(b)
  		 Assuming total weighted average outstanding shares of 4,263 million and 4,341 million for Basic and Fully Diluted EPS calculation

Appendix:

Unconsolidated Financial Results

1Q 2003 Income Statement
– QoQ Comparison (Unconsolidated)

Amount : NT$ Million Except Per Share Data

  1Q'03   4Q'02   QoQ  
  Unconsolidated(a)   Unconsolidated   Change %  
 
 
 
 
Net Sales 17,115   100.0 % 15,964   100.0 % 7.2 %
Cost of Goods Sold (15,491 ) -90.5 % (14,912 ) -93.4 % 3.9 %
 
 
 
 
     Gross Profit 1,624   9.5 % 1,052   6.6 % 54.4 %
Operating Expenses (1,227 ) -7.2 % (1,102 ) -6.9 % 11.4 %
 
 
 
 
     Operating Income 397   2.3 % (50 ) -0.3 % –  
Net Non-operating Income (Exp.) (218 ) -1.3 % (727 ) -4.6 % -70.0 %
 
 
 
 
    Income before Tax 179   1.0 % (778 ) -4.9 % –  
Income Tax Credit (Exp.) 0   0.0 % 0   0.0 % –  
 
 
 
 
     Net Income 179   1.0 % ( 778 ) -4.9 % –  
 
 
 
 
Basic EPS (NT$)(b) 0.04       (0.29 )     –  
EBITDA 3,800   22.2 % 3,311   20.7 % 14.8 %

(a) 1Q’03 unconsolidated figures are unaudited, prepared by AU Optronics Corp.
(b) Total weighted average outstanding shares of 3,640 million and 4,014 million were used in Basic EPS calculation for 4Q’02 and 1Q’03, respectively

 

14

1Q 2003 Balance Sheet & Cash Flow
– QoQ Comparison (Unconsolidated)

Amount : NT$ Million                    
  1Q'03   4Q'02   QoQ  
  Unconsolidated(a)   Unconsolidated   Change %  
 
 
 
 
Cash & Cash Equivalents 17,701   14.3 % 25,659   20.3 % -31.0 %
ST Inv. / Marketable Securities 3,182   2.6 % 3,182   2.5 % 0.0 %
LT Debt 22,258   18.0 % 25,163   19.9 % -11.5 %
Equity 77,905   62.9 % 77,828   61.5 % 0.1 %
Total Assets 123,881   100.0 % 126,622   100.0 % -2.2 %
   
Debt to Equity (Fully Diluted) 38.5 %     42.2 %        
Net Debt to Equity (Fully Diluted) 16.1 %     9.7 %        
   
Depreciation & Amortization 3,403       3,361       1.3 %
Capital Expenditure 6,269       5,828       7.6 %
Inventory 7,393       8,019       -7.8 %

(a) 1Q’03 unconsolidated figures are unaudited, prepared by AU Optronics Corp.

 

1Q 2003 Income Statement
– YoY Comparison (Unconsolidated)

Amount : NT$ Million Except Per Share Data
  1Q'03   1Q'02   YoY  
  Unconsolidated(a)   Unconsolidated   Change %  
 
 
 
 
Net Sales 17,115   100.0 % 19,749   100.0 % -13.3 %
Cost of Goods Sold (15,491 ) -90.5 % (16,442 ) -83.3 % -5.8 %
 
 
 
 
   Gross Profit 1,624   9.5 % 3,307   16.7 % -50.9 %
Operating Expenses (1,227 ) -7.2 % (923 ) -4.7 % 32.9 %
 
 
 
 
   Operating Income 397   2.3 % 2,383   12.1 % -83.3 %
Net Non-operating Income (Exp.) (218 ) -1.3 % (349 ) -1.8 % -37.5 %
 
 
 
 
   Income before Tax 179   1.0 % 2,034   10.3 % -91.2 %
I nco me Tax Credit (Exp.) 0   0.0 % 0   0.0 % –  
 
 
 
 
   Net Income 179   1.0 % 2,034   10.3 % -91.2 %
 
 
 
 
      Basic EPS (NT$)(b) 0.04       0.63       -92.9 %
(a) 1Q’03 unconsolidated figures are unaudited, prepared by AU Optronics Corp.
(b) Total weighted average outstanding shares of 3,206 million and 4,014 million were used in Basic EPS calculation for 1Q’02 and 1Q’03, respectively

 

1Q 2003 Balance Sheet & Cash Flow
– YoY Comparison (Unconsolidated)

Amount : NT$ Million                    
  1Q'03   1Q'02       YoY  
  Unconsolidated(a)   Unconsolidated   Change %  
 
 
 
 
Cash & Cash Equivalents 17,701   14.3 % 4,274   4.2 % 314.2 %
ST Inv. & Marketable Securities 3,182   2.6 % 3,982   3.9 % -20.1 %
LT Debt 22,258   18.0 % 32,839   32.0 % -32.2 %
Equity 77,905   62.9 % 50,455   49.1 % 54.4 %
Total Assets 123,881   100.0 % 102,733   100.0 % 20.6 %
Debt to Equity (Fully Diluted) 38.5 %     58.9 %        
Net Debt to Equity (Fully Diluted) 16.1 %     51.2 %        
Depreciation & Amortization 3,403       2,917       16.7 %
Capital Expenditure 6,269       2,063       203.9 %
Inventory 7,393       8,231       -10.2 %

(a) 1Q’03 unconsolidated figures are unaudited, prepared by AU Optronics Corp.

Item 5


AU Optronics Corp.
April 24 2003
English Language Summary


Subject: The Board Resolution to amend the agenda of 2003 Annual General Shareholders’ Meeting

Regulation: Published pursuant to Article 2-47 of the Taiwan Stock Exchange's Operating Procedures for the Publication of Material Information by Listed Companies

Date of events: 2003/04/24

Content:

  1. Date of occurrence of the event: 2003/04/24

  2. Cause of occurrence: N/A

  3. Countermeasures: N/A

  4. Any other matters that need to be specified: As per the Board resolution on April 24, 2003, the revisions to the agenda of 2003 Annual General Shareholders’ Meeting are listed as follows.

  (1) Remove the proposal of preferred shares issuance through private placement from the meeting agenda.

Item 6

News Release

AU OPTRONICS ANNOUNCES 1Q03 RESULTS WITH
CONSOLIDATED NET SALES OF NT$18,263 MILLION and
NET INCOME OF NT$179 MILLION

Return to Profitability

FOR MORE INFORMATION
Yawen Hsiao
Corporate Communications Dept.
AU Optronics Corp.
No.1, Li-Hsin Road 2, Science-Based Industrial Park,
Hsinchu City, 300, Taiwan, R.O.C.
Tel: +886-3-5632939 ext 3211
Fax: +886-3-5637608

Email: yawenhsiao@auo.com

AU Optronics Corp. (“AUO” or the “Company”) (TAIEX: 2409; NYSE: AUO), the world’s third largest manufacturer of large-size TFT-LCD panels, today announced its unaudited results of operations for the year ended December 31, 2002. All financial information was prepared in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”) on an unconsolidated basis. There are many differences between ROC GAAP and U.S. GAAP, some of which are described in the notes to the financial statements contained in the registration statement on Form F-1 filed with the United States Securities and Exchange Commission on May 15, 2002. The unaudited unconsolidated financial information presented herein is not necessarily indicative of our future financial results.

Hsin Chu, Taiwan, April 24th, 2003 –

     AU Optronics Corp. (“AUO” or the “Company”) (TAIEX: 2409; NYSE: AUO) today announced its unaudited consolidated results of operations for the quarter ended March 31, 2003. Consolidated net sales totaled NT$18,263 million, a 13.2% growth from 4Q02. AUO also returned to profitability in 1Q03, posting net income of NT$179 million, a significant improvement from net loss of NT$(778) million in 4Q02. Gross profit for the quarter amounted NT$1,890 million, rising 185.6% from NT$662 million in 4Q02. Gross margin for the period was 10.3%, compared with 4.1% in 4Q02. Operating income and Operating margin were NT$582 million and 3.2%, respectively, vs. an operating loss of NT$(574) million and negative operating margin of (3.6)% for 4Q02. Basic EPS for 1Q03 is NT$0.04, vs. a net loss per share of NT$(0.29) in the previous

     “The first quarter results are generally in line with our earlier guidance given during our 4Q02 announcement. Successful internal cost control and product mix improvement were the main drivers for AUO’s 1Q03 results to outperform its peers in Taiwan.” said AUO VP & CFO Max Cheng.

     Unit shipment of 1Q03 large size panels grew about 6% QoQ to 2.33 million. The increased weighting of large size panels was mainly contributed by increased shipment of 17” desktop monitor panels and 15” NB panels. Accordingly to the latest estimates of DisplaySearch, AUO has been ranked No. 2 worldwide in total desktop monitor panel shipment for both 1Q03 and 4Q02, while maintaining its top 2 global position in 17” monitor panels. On overall large size panel shipment, AUO ranked No. 3 globally with a 12.1% of the market.

     Applications for small and medium size panels are primarily consumer electronics related, hence the unit shipment declined approximately 15% QoQ to 2.62 million units, impacted by seasonality factors in a typical first quarter low season for consumer electronic products. Notwithstanding, AUO sustained its leadership position in the small and medium size arena, ranked by DisplaySearch as the No. 2 supplier of Digital Still Camera panels (22.6% global market share), and No. 3 panel supplier for Car Navigation applications.

1Q 2003 Consolidated Financial Results: QoQ Comparison Highlights

ABOUT AU OPTRONICS

     AU Optronics Corp., headquartered at Hsinchu, Science-Based Industrial Park, Taiwan, is a world-leading manufacturer of TFT-LCD modules. The company offers a broad range of TFT-LCD products and related services to OEM manufacturers and brand companies.

     Currently AUO operates three 3.5-generation, one fourth-generation TFT-LCD fab and a fifth-generation TFT-LCD fab that commenced commercial production in March 2003. AUO also operates three module assembly facilities, and one R&D fab. specializing in low temperature poly silicon TFT and organic LED.

     In addition to manufacturing and assembly facilities in Taiwan, AUO has global operations in China, Japan, and the United States. The company markets its TFT-LCDs through four business units including Audio Video Displays Applications, TV Displays Applications, Desktop Display Applications and Mobile Displays Applications. The Company had net sales under ROC GAAP of NT$75.5 billion (US$2.15 billion) in 2002. Website: http://www.auo.com

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Item 7

News Release

AU Optronics Announces 2003 Financial Forecast

FOR MORE INFORMATION
Yawen Hsiao
Corporate Communications Dept.
AU Optronics Corp.
No.1, Li-Hsin Road 2, Science-Based Industrial Park,
Hsinchu City, 300, Taiwan, R.O.C.
Tel: +886-3-5632939 ext 3211
Fax: +886-3-5637608

Email: yawenhsiao@auo.com

Hsin Chu, Taiwan, April 24th, 2003 –

     AU Optronics Corp. (“AUO” or the “Company”) (TAIEX: 2409; NYSE: AUO), today announced its financial forecast for 2003. Consolidated net sales for the fiscal year ends December 31, 2003 are estimated at NT$96.27 billion, representing a 27% increase from fiscal year 2002, while unconsolidated revenues are forecasted to be NT$89.84 billion. Net income for year 2003 is estimated at NT$2.58 billion. Based on estimated weighted average outstanding shares of 4,263 and 4,341 million, basic EPS and fully diluted EPS are estimated to be NT$0.61 and NT$0.60.

     The Company is publishing this financial forecast for the year 2003 pursuant to the Republic of China Securities and Futures Exchange’s “Guidelines for Publishing of Financial Forecasts of Public Companies”, which stipulates that such an disclosure must be made following the Company’s local equity issuance in 2001.

     Dr. Hui Hsiung, Executive Vice President of AU Optronics, commented that unit shipment for large size panels is targeted at 11.7 million for 2003, a significant increase from the 8.3 million in 2002, while 23.0 million units are set as the target for small & medium size panels, vs. the 9.1 million last year.

     On the applications side, AUO continues to expand and enhance its product portfolio, for the TFT-LCD TV segment that represents substantial growth potential, AUO will introduce its new 30”W and 46”W LCD TV panels this year, following the successful introduction of 20.1”, 17”W, and 26”W LCD TV panels. AUO’s LCD TV panel shipment is expected to increase gradually throughout 2H 2003 with the contribution of the new G5 capacity.

     Mr. HB Chen, President and COO of AU Optronics, reiterated that 2003 represents a very challenging year for TFT-LCD Industry. However, AUO is well prepared to take advantage of all the potential opportunities behind the challenges – supported by one of the most solid financial position in the industry, AUO is fully committed to its expansion plan, while continue to provide our customers favorable solutions via our superior product design, process and production capabilities.

     In response to the future robust demand of LCD TV panels, AUO has applied to the National Science Council for its new capacity expansion plan in the Taichung Science-Based Industrial Park, to set up a new AUO production base. AUO’s next generation TFT-LCD fab in Taichung Science Park, which is currently under planning, is scheduled to commence construction by end of 2003 and expected to begin commercial production in 2005. AUO is likely to be the first major TFT-LCD manufacturer to establish its presence in Taichung Science-Based Industrial Park, and is expected to attract associated sector players to potentially create a new optronic cluster in Taichung Science Park with its industry leadership position, which would help accelerate the economic development in Taichung.

ABOUT AU OPTRONICS

     AU Optronics Corp., headquartered at Hsinchu, Science-Based Industrial Park, Taiwan, is a world-leading manufacturer of TFT-LCD modules. The company offers a broad range of TFT-LCD products and related services to OEM manufacturers and brand companies.

     Currently AUO operates three 3.5-generation, one fourth-generation TFT-LCD fab, and a new state-of-the-art fifth-generation TFT-LCD fab that has recently commenced commercial production. AUO also operates three module assembly facilities, and one R&D fab. specializing in low temperature poly silicon TFT and organic LED.

     In addition to manufacturing and assembly facilities in Taiwan, AUO has global operations in China, Japan, and the United States. The company markets its TFT-LCDs through four business units including Audio Video Displays Applications, TV Displays Applications, Desktop Display Applications and Mobile Displays Applications. The Company had net sales under ROC GAAP of NT$75.5 billion (US$2.15 billion) in 2002. Website: http://www.auo.com

SAFE HARBOR STATEMENT

The statements included in this announcement and in the website that are not historical in nature are “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements, which may include statements regarding AU Optronics’ future results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on AU Optronics’ 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 our industry; 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 to successfully expand our capacity; our dependence on key personnel; general economic and political conditions, including those related to the TFT-LCD industry; possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.

Additional information as to these and other factors that may cause actual results to differ materially from AU Optronics’ forward-looking statements can be found in AU Optronics’ registration statement on Form F-1 filed with the United States Securities and Exchange Commission on May 15, 2002.

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