Slide 1: February 2019 Investor Presentation
Human Interface and Display Technologies : HIMX February 2019 INVESTOR PRESENTATION
Slide 2: Forward Looking Statements
Forward Looking Statements Factors that could cause actual events or results to differ materially include, but not limited to, general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed b
Slide 3: Recognized Industry Leader
Recognized Industry Leader For the last 30 years, we have worked with leading OEMs to develop and the most recognized imaging and human interfacing technologies. 1990s 2000s 2010s 2018 and Beyond Founder B.S. Wu pioneers flat Chairman Wu establishes Himax to meet Himax gains market share with design
Slide 4: Investment Highlights
Investment Highlights Leading Imaging and Human Interfacing Technology Innovator ▪ Global display driver player with a wide range of display technologies for panels of all sizes ▪ Thousands of patents for Himax’s IP and designs ▪ Imaging technology and human interfacing total-solution provider Diver
Slide 5: Himax on NASDAQ
Himax on NASDAQ 12 Month Trading Chart Fiscal Year December 31 Last-Traded Price (02/15/19) $3.91 Basic and Diluted Weighted Ave. Out. ADS 172.5M Equivalent ADS Out 172.1M Market Capitalization (02/15/19) $672.9 M 50-Day Avg. Daily Volume (02/15/19) 2.6M Annualized Dividend $0.10 Insider Ownership*
Slide 6: Shareholder-Focused, Returning Profits
Shareholder-Focused, Returning Profits Himax Dividend and Policy Himax Share Buyback ▪ Distributed a total of $458 million of dividend since IPO (2018 payout in July) ▪ Initiated four share buyback programs totaling $158 ▪ Dividends referenced primarily on prior year’s profitability million since 20
Slide 7: Summary and Guidance
Summary and Guidance 4Q2018*** 3Q2018*** 4Q2017*** YoY QoQ Revenues $191.0M $188.4M $181.1M +5.5% +1.4% Gross Margin (%) 24.3% 23.4% 24.6% -0.3% +0.9% IFRS Profit $8.5M* $0.9M $23.5M** -64.1% +852.0% IFRS Earnings per $0.049* $0.005 $0.136 ** -64.1% +851.8% ADS Non-IFRS Profit $8.7M $4.5M $23.8M** -
Slide 8: A Global Semiconductor Company
AForward Global Semiconductor Looking Statements Company Himax’s Global Reach ▪ Fabless semiconductor company with world leading visual imaging processing technologies Asan, Bundang ▪ Global market leader in TFT-LCD Sales Design display driver and timing controller ICs Beijing, Shanghai, Suzhou Tech
Slide 9: Corporate Structure
Corporate Structure Himax Technologies, Inc. Himax Technologies, LTD. Himax Display, Inc. Himax Imaging, LTD. ▪ TFT-LCD Driver, EPD Driver, ▪ LCOS Modules for Head- ▪ CMOS Image sensors Micro LED Driver and Mounted Display, Head-up AMOLED Driver Display and Pico-projector ▪ TCON and Bridge IC Applic
Slide 10: Our Technologies Are Used by Consumer Brands Worldwide
Our Technologies Are Used by Consumer Brands Worldwide
Slide 11: Display Driver IC (DDIC)
Display Driver IC (DDIC) We are a leader in display driver ICs used to enable flat panel display in TFT, Touch and AMOLED in large, small and medium-sized display panels MARKETS WE SERVE Smartphones, Tablets, Monitors, Notebooks, TVs, Automotive Gaming, Education, Healthcare plus 100’s more applicat
Slide 12: Our DDIC Market Share
Our DDIC Market Share 2018 Q3 Driver Market Share We have the ability to provide a complete solution of (2Q18 Market Share %, Revenue) image processing technologies and leverage our MediaTek Fitpower 1% ROHM expertise in mobile devices and other mass-market 3% 3% FocalTech Others 6% technology relea
Slide 13: TDDI Technologies
TDDI Technologies We design technologies for touch sensor displays including in-cell touch and the fast-growing segment of Display Driver Integration (TDDI) single-chips MARKETS WE SERVE Beginning with smartphones, will expand to tablet, laptops, automotive, and many other consumer electronic device
Slide 14: WLO and CIS
WLO and CIS We offer industry leading WLO design know-how and mass production expertise for 3D sensing solutions which cover structured light, active stereo camera (ASC) and ToF. Our CMOS image sensors include near infrared (NIR) sensors for 3D sensing and ultra-low power computer vision, Always-on-
Slide 15: LCoS Microdisplays
LCoS Microdisplays We are the leader and long-term innovator of Liquid Crystal on Silicon (LCoS) displays and the only company capable of high-volume production runs of LCoS displays for the launch of mass-market devices. Our Front Lit LCoS Technology Advantages • Compact Form Factor • Brightness •
Slide 16: Our Customers
Our Customers DISPLAY DRIVERS We are In Displays Display Driver TCON PMIC On Touch Panels LED Driver Controller IC P-gamma OP WAFER LEVEL OPTICS CMOS IMAGE SENSORS Others ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and In Camera Modules licensing CMOS
Slide 17: Fabless Manufacturing Expertise
Fabless Manufacturing Expertise Display Driver CMOS Image Sensor Back-end Wafer Fabrication Package Chip Probe Testing Gold Bumping FT RW Processed Tape Chip Probe Testing SOC Chip Probe Testing Package Assembly and Testing FT 17
Slide 18: Market Opportunities by Product Application and Himax Strategies
Market Opportunities by Product Application and Himax Strategies 18
Slide 19: WLO and CIS Growth Opportunity
GROWTH OPPORTUNITY 1 WLO and CIS Market Trends Himax WLO for 3D Sensing ▪ Wafer-Level Optics (WLO) remains the best technology for structured light, active stereo camera (ASC) and Time-of-Flight (ToF) 3D sensing ▪ Very few companies can provide advanced WLO solutions to achieve optical high efficien
Slide 20: TDDI Growth Opportunity
GROWTH OPPORTUNITY 2 TDDI Market Trends TDDI Demand Forecast 2015-2022 ▪ Expect higher TDDI penetration in smartphones going forward In Millions of Units ( IHS Market, 2018) and continued growth Unit Demand in Millions 860 ▪ Full screen 18:9 aspect ratio displays becoming the trend 900 780 670 800 ▪
Slide 21: Display Driver IC (DDIC) Growth Opportunity
GROWTH OPPORTUNITY 3 Display Driver IC (DDIC) Market Trends Continual Progression to Higher Resolution • Chinese panel manufacturers are aggressive with new Gen 8 and above Displays and AMOLED TFT-LCD and OLED capacity expansion with a special focus on advanced display technologies • Leading Chinese
Slide 22: LCoS Microdisplays Growth Opportunity
GROWTH GROWTHOPPORTUNITY OPPORTUNITY24 TDDI LCoSAdoption Rate Growth Microdisplays Market Trends ▪ Many top name multinationals or start-ups are investing heavily to Front Lit LCOS Advantages • Compact Form Factor develop the AR ecosystem; applications, software, operating systems, • Brightness syst
Slide 23: 2018 YTD Financial Review
2018 YTD Financial Review
Slide 24: Unit and Revenue History
Unit and Revenue History We are One of the Leading Semiconductor Companies in the World Unit Sales and Revenues (in millions of units and millions of $USD) $1,200 1521 1516 1500 Revnues 1464 1311 1323 $1,000 Units Sold 1337 1309 1300 1069 1297 1165 $800 $833 1156 1100 $841 $771 $803 $745 $692 $737 $
Slide 25: A Balanced Product Mix
A Balanced Product Mix… ▪ Global market share leader in large, small and medium-sized panel driver ICs ▪ Market leader in 3D sensing – Structured light and active stereoscopic 3D sensing total solutions will represent a paradigm shift when it starts to achieve a broader market adoption once an easie
Slide 26: ...and a Diversified Customer Base
…and a Diversified Customer Base Largely reduced dependence on one single customer, Innolux. ▪ Diversifying product revenues by non-driver product wins and leveraging existing customers ▪ Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Himax’s related
Slide 27: Gross Margin is a Key Business Focus
Gross Margin is a Key Business Focus Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM US$M in Revenues and Gross Margin % of Sale 30. 0% US$M in Revenues and Quarterly Gross Margins $1,4 00.0 24.6% 24.5% 24.2% 24.4% China Sales ROW Sales 24.5% 23.1% 23.6% 23.3% Quarterly Gross Margi
Slide 28: OPEX and the Bottom Line
OPEX and the Bottom Line $250 OPEX and % of Total Sales Profit and EPS (US$M / %) 23.2% 22.8% (US$M / US$) 19.1% 17.3% 17.2% 16.8% $250 15.8% $200 14.2% 15.5% 14.0% 15.2% 10.7% $0.57 $165.5 $158.7 $200 $143.9 $0.40 $0.39 $150 $133.2 $132.5 $135.1 $0.36 $117.5 $150 $0.30 $0.30 $109.0 $103.5 $98.1 $98
Slide 29: Performance History
Performance History Operating and R&D Expenses (in millions USD) EBITDA (in millions USD) R&D Expense Operating Expense ex. RD $120 $42.5 $100.6 $41.0 $100 $90.1 $56.3 $39.3 $79.5 $41.4 $38.1 $76.4 $80 $73.8 $37.1 $23.3 $29.9 $32.6 $27.0 $60 $57.5 $49.1 $47.5 $47.7 $117.7 $123.0 $40 $91.8 $94.4 $95.
Slide 30: Income Statement
Income Statement Income Statement 30
Slide 31: Balance Sheet
Balance Sheet * Short-term borrowings is guaranteed by restricted deposit 31
Slide 32: Cash Flow Statement
Cash Flow State f 4Q-2018 3Q-2018 2018FY 2017FY (Unaudited) (Unaudited) (Unaudited) (Unaudited) eo $7,826 $120 $6,026 $25,538 Depreciation and amortization 4,869 5,180 20,327 16,680 Expected credit loss recognized on accounts receivable 100 0) 290 155 Share-based compensation expenses 419 205 408 99
Slide 33: Management Team
Management Team Dr. Biing-Seng Wu, Chairman of the Board - Dr. Wu, the founder of Himax, previously served as President, CEO and a Director of Himax Taiwan. As a pioneer of TFT-LCD panel industry in Taiwan, Dr. Wu has been active in the TFT-LCD panel industry for over 20 years. With 61 patents relat
Slide 34: Contact Us
Contact Us Jackie Chang, CFO Main: +886-2-2370-3999 #22300 John Mattio US Office: +1 (949) 585-9838 #252 US Investor Main: +1 (203) 885-1058 jackie_chang@himax.com.tw Relations jmattio@lamniaintl.com www.lamniaintl.com Company Ophelia Lin, IR Project Deputy Director Main: +886-2-2370-3999 #22202 Oph