Slide 1: Investor Presentation
: HIMX Investor Presentation May, 2017
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: 30 years of digital imagery expertise
30 years of digital imagery expertise 1990’s 2000’s 2010’s and beyond… Founder B.S. Wu pioneers Chairman Wu establishes Himax to Himax gains market share with Himax leads LCOS and WLO flat panel technologies at meet DDIC demand for large design wins with leading development and innovation of new Chi
Slide 4: Investment Highlights
Himax's TOP THREE driver I/C position and global Investment Highlights Investment highlights reach 1 Leading Display Driver Provider • Worldwide leading display driver player with a wide range of drivers for panels of all sizes and in-house intellectual property • Image technology solutions provider
Slide 5: Summary Financials: Capital markets snapshot
Summary Financials Capital markets snapshot Fiscal Year December 31st Last-Traded Price (05/26/17) $6.68 Basic Weighted Ave. Out. ADS 172.4M Diluted Weighted Ave. Out. ADS 172.4M Equivalent ADS Out. 172.0M Market Capitalization (05/26/17) $1.15B Insider Ownership* 23.26% * Insider ownership includes
Slide 6: Shareholder focused. Returning profits
Shareholder focused. Returning profits Dividends Share Buy Back • Distributed a total of $400 million of dividend • Initiated four share buyback programs since IPO (2016 payout in August) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5
Slide 7: Summary financials and guidance
Summary Financials Summary financials and guidance QUARTER 1Q2017 1Q2016 4Q2016 YoY QoQ Revenues $155.2M $180.3M $203.4M -13.9% -23.7% Gross Margin (%) 23.1% 26.2% 19.1%*** -3.1% +4.0% GAAP Net Income $1.4M $13.1M $4.4M -89.6% -69.3% GAAP Earnings per ADS $0.008 $0.076 $0.026 -89.6% -69.3% Non-GAAP
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou Fuzhou Ninbo, Foshan • Fabless semiconductor company with Wuhan, Shenzhen, Hefei, Xiamen, Chongqing, Xian Tokyo world leading visual imaging processing Sales Sales technologies Design Technical Support Technical Support • Global market leader
Slide 9: Corporate structure
Corporate Main structure Operating Companies & Solutions : HIMX Himax Technologies, Inc. HIMAX TECHNOLOGIES, Ltd. a HIMAX DISPLAY, Inc. HIMAX IMAGING, Ltd. • TFT-LCD Driver and AMOLED Driver • LCOS Modules for Head- • CMOS Image sensors • TCON and P-Gamma OP Mounted Display, Head-up Display and Pico
Slide 10: Himax inside consumer electronics
Himax inside consumer electronics DISPLAY DRIVERS In Displays On Touch Panels Display Driver TCON PMIC Controller IC LED Driver P-gamma OP WAFER LEVEL OPTICS CMOS IMAGE SENSORS Others ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP In Camera Modules Servicing and l
Slide 11: Fabless Management of Complex Supply Chains
Skilled Fabless Management of Complex Supply Chains 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 11
Slide 12: Product Lines & Growth Opportunities
Product Lines & 6 Growth Opportunities 12
Slide 13: DDIC market share
DDIC market share 2016 Q4 Driver Market Share HIMX TFT Driver IC Market Share by ( 3Q16 Market Share %) Application 3Q16 4Q16 FocalTech 4% Others 1Q17 12% 36.0% Raydium Samsung 35.6% 4% 25% (23%) 29.6% MediaTek 4% 22.5% 23.3% 22.3% 22.0% MagnaChip 20.3% 19.7% 18.3% 4% Novatek 14.1% Sitronix 5% 16% H
Slide 14: Large panel DDIC: Market Trends and Strategies
1 Grow large panel DDIC unit Sales and market share Market Trends • Continuously aggressive new Gen 8 above TFT-LCD capacity expansion in China with a special focus on advanced display technologies • Leading Chinese panel maker’s shipment ranked world No. 1 in December 2016 and by 2019, its total TF
Slide 15: Small/medium panel DDIC: Market Trends and Strategies
2 Grow S/M panel DDIC Launch new products Market Trends Small Medium Display Area by Technology • Korean, Japanese and Chinese smartphone customers seeking product differentiation with AMOLED panels • Leading China panel makers has ramped up their investments in AMOLED manufacturing and accelerate t
Slide 16: WLO and CMOS Image Sensors
3 WLO CMOS andSensors Image CMOS image sensors Market Trends • 3D scanning is one of the most significant applications for next NIR Sensor + WLO & DOE Applications generation smartphone • Advanced Wafer-Level Optics (WLO) is the future for 3D depth scanning, AR devices and computational optics, • CI
Slide 17: LCOS Microdisplay
4 LCOS Microdisplay Market Trends • Heavy weight companies allocating major R&D resources and budget in their push for AR goggle devices, Front Lit LCOS Advantages • Compact Form Factor • LCOS recognized as one of the technology choices for microdisplay in • Brightness AR devices. • Power Efficiency
Slide 18: Touch Panel Controllers
5 Touch Touch Panelpanel Controllers controllers Market Trends • Integration of Display & Touch by panel makers and OEMs in Korea, China and Taiwan • In-cell display with TDDI rapidly becoming the preferred choice for smartphone brand customers’ next gen. mid-to-high end models HIMX Strategies and M
Slide 19: Timing controllers
6 Timing controllers TCON Market Trends Timing Controller Growth by Application • TCON becoming the key enabler of next generation ultra-high resolution panel development 14,000 12,000 • Continuously aggressive new Gen 8.5 and Gen 10.5 TFT-LCD 10,000 capacity expansion in China with a special focus
Slide 20: Financial Review
* 20 PY De: Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history One of the Leading Semiconductor Companies Volume Revenues (unit, M) (US$ M) 1,516 1,500 1,464 $1,000 1,337 $918 1,400 1,297 1,309 $900 1,300 $833 $841 1,165 $803 1,200 1,152 1,156 $800 $771 $745 $737 1,100 1,069 $692 $692 975 $700 $643 $633 1,000 900 $600 $540 800 719 $
Slide 22: A better balanced product mix
A better balanced product mix…. • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • Advanced Wafer Level Optics, CIS and LCOS microdisplay Positive long-term growth prospect GM & OPM significantly hi
Slide 23: ....and a diversified customer base
….and a diversified customer base Customer Mix 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 Hi
Slide 24: Gross margin is a key business focus
Gross marginis a key business focus Gross margin Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM (US$M) 30. 0% (US$M) Better product mix lifts blended margin $1,4 00.0 China Sales ROW Sales 24.5% 24.6% 24.5% 24.2% GM 25.6% 23.1% 23.6% 23.1% 25. 0% GM 26.1% GM 19.1% 22.0% GM 25.7% G
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) 22.1% $200 $250 19.1% $0.57 17.3% 17.2% 16.8% $0.39 14.2% 15.5% 15.8% $0.40 10.7% 14.0% 15.2% $0.30 $0.36 $0.30 0.5 $0.21 $0.19 $0.15 $200 $0.06 $0.01 $150 (0.008) 0 $112.6 $150 $143.9 $133.2 $132.5 $135.1 -0.5
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $143.9 $120 $135.1 $140 $133.2 $132.5 $100.6 $117.5 $100 $120 $56.3 $108.9 $39.3 $90.1 $103.5 $41.4 $98.3 $99.7 $38.1 $79.5 $100 $80 $76.4 $73.8 $37.1 $32.6 $27.0 $23.3 $29.9 $80 $57.5 $60 $49.1 $47.5 $60 $40 $87.6 $91.8 $94.
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement March 31, 2017 Income Statement US$’000 1Q-2017 1Q-2016 4Q-2016 Y2016 Y2015 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues $155,210 $180,319 $203,443 $802,917 $691,789 Cost of revenues 119,309 133,144 164,517 608,60
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet March 31, 2017 Balance Sheet March 31, 2017 December 31, 2016 March 31, 2016 US$’000 Balance Sheet (Unaudited) (Audited) (Unaudited) Assets Current Assets: Cash and cash equivalents $190,345 $184,452 $150,521 Investments in marketable securities available-for-sale
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement March 31, 2017of Cash Flow Summary 1Q-2017 4Q-2016 2016FY 2015FY (Unaudited) (Unaudited) (Audited) (Audited) US$’000 Net income $809 $3,501 $48,747 $21,462 Depreciation and amortization 3,439 3,448 13,756 14,164 Share-based compensation expenses 254 254 1,18
Slide 30: Founders and management
Founders and management Management & Board 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
Slide 31: Contact us
Contact Contact us Jackie Chang, CFO Greg Falesnik Main: +886-2-2370-3999 #22300 US Investor Main: +1 (212) 301-7130 US Office: +1 (949) 585-9838 #252 Relations greg.falesnik@mzgroup.us jackie_chang@himax.com.tw http://www.mzgroup.us Company Penny Lin, IR Manager Main: +886-2-2370-3999 #22320 Corpor