Slide 1: August 2019 Investor Presentation
Human Interface and Display Technologies : HIMX August 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 (08/07/19) $2.98 Basic and Diluted Weighted Ave. Out. ADS 172.6M Equivalent ADS Out 172.1M Market Capitalization (08/07/19) $513.0M 50-Day Avg. Daily Volume (08/07/19) 1.1M Insider Ownership* 23.4% * Insider ownership i
Slide 6: Shareholder-Focused, Returning Profits
Shareholder-Focused, Returning Profits Himax Dividend and Policy Himax Share Buyback ▪ Distributed a total of $458 million of cash dividend since IPO ▪ Initiated four share buyback programs totaling $158 ▪ Typically pays out annual cash dividend at approximately the middle of the current calendar ye
Slide 7: Summary and Guidance
Summary and Guidance 2Q2019** 1Q2019** 2Q2018** YoY QoQ Revenues $169.3M $163.3M $181.4M -6.6% +3.7% Gross Margin (%) 19.5% 22.6% 23.0% -3.5% -3.1% IFRS Profit (Loss) ($5.2M) ($2.3M) $2.0M -351.8% -122.1% IFRS Profit (Loss) per ADS ($0.030) ($0.013) $0.012 -351.7% -122.1% Non-IFRS Profit (Loss) ($4.
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, Micro LED Driver and ▪ LCOS Modules for Head- ▪ CMOS Image sensors AMOLED Driver Mounted Display, Head-up ▪ TCON and Bridge IC Display and Pico-projector ▪ Touc
Slide 10: Our Technologies Are Used by Consumer Brands Worldwide
Our Technologies Are Used by Consumer Brands Worldwide 10
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 and Touch in large, small and medium-sized display panels MARKETS WE SERVE Smartphones, Tablets, Monitors, Notebooks, TVs, Automotive Gaming, Education, Healthcare plus 100’s more applications for
Slide 12: Our DDIC Market Share
Our DDIC Market Share 2019 Q1 Driver Market Share We have the ability to provide a complete solution of (4Q18 Market Share %, Revenue) image processing technologies and leverage our MediaTek 3% Fitpower 2% ROHM 1% expertise in mobile devices and other mass-market FocalTech 3% Solomon Others 4% techn
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 Other In Camera Modules licensin
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 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 2 TDDI Market Trends TDDI Demand Forecast 2015-2022 ▪ Expect higher TDDI penetration in smartphones going forward In Millions of Units ( IHS Market, 2019) and continued growth Unit Demand in Millions 893 ▪ Full screen 18:9 aspect ratio displays becoming the trend 900 792 ▪ OEMs ar
Slide 21: Display Driver IC (DDIC)
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 in Smartphones TFT-LCD and OLED capacity expansion with a special focus on advanced display technologies •
Slide 22: LCoS Microdisplays
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: 2019 YTD Financial Review
2019 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) 1521 1516 $1,200 1500 Revnues $1,000 Units Sold 1464 1300 1069 1337 1323 1297 1309 1311 719 1165 $800 $833 1156 1100 $841 $771 $803 $745 $692 $7
Slide 25: A Balanced Product Mix…
A Balanced Product Mix… ▪ Global market share leader in large, small and medium-sized panel driver ICs ▪ Market leader in 3D sensing – Structured light, active stereoscopic and ToF ▪ Increasing non-driver sales diversifies customer base, improves product mix and lifts gross margin ▪ Innovative techn
Slide 26: …and a Diversified Customer Base
…and a Diversified Customer Base Largely reduced dependence on one single customer, Innolux. ▪ Diversifying product revenues by non-driver product wins and leveraging existing customers ▪ Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Himax’s related
Slide 27: Gross Margin is a Key Business Focus
Gross Margin is a Key Business Focus Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM US$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 $250 OPEX and % of Total Sales (US$M / %) 23.2% 22.8% 23.8% Profit and EPS 19.1% $90 (US$M / US$) 17.3% 17.2% 16.8% 15.8% $200 14.2% 15.5% 14.0% 15.2% $80 10.7% $165.5 $158.7 $70 $143.9 $150 $133.2 $132.5 $135.1 $60 $0.40 $0.39 $117.5 $0.36 $109.0$103.5 $50 $0.30 $0.30 $98.1
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 $42.5 $41.0 $100.6 $56.3 $39.3 $41.4 $38.1 $90.1 $37.1 $76.4 $79.5 $73.8 $29.9 $32.6 $27.0 $23.3 $57.5 $20.4 $49.1 $47.5 $47.7 $117.7 $123.0 $87.6 $91.8 $94.4 $95.8 $30.1 $7
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
Profit (loss) for the riod Depreciation and amortization Expected credit loss recognized on accounts receivable Share-based compensation expenses Gain on disposals of property, plant and equipment Gain on re-measurement of the pre-existing relationships in a business combination Changes in fair valu
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 Maili Bergman US Office: +1 (949) 585-9838 #252 US Investor Main: +1 (949) 298-4320 jackie_chang@himax.com.tw Relations HIMX@mzgroup.us www.mzgroup.us Company Ophelia Lin, IR Project Deputy Director Main: +886-2-2370-3999 #22202 Ophelia_lin@