Slide 1: Investor Presentation
: HIMX Investor Presentation March, 2016
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 leads LCOS Himax gains market share with design flat panel technologies at meet DDIC demand for large wins with leading technology products development and innovatio
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: Capital markets snapshot
Summary Financials Capital markets snapshot Fiscal Year December 31st Last-Traded Price (02/29/16) $9.89 Basic Weighted Ave. Out. 171.6M ADS Diluted Weighted Ave. Out. 171.9M ADS Equivalent ADS Out. 171.9M Market Capitalization $1.7B (02/29/16) Insider * Insider Ownership ownership includes executiv
Slide 6: Returns profits to shareholders
Shareholder focused. Returns profits Dividends Share Buy Back • Distributed a total of $378 million of dividend since • Initiated four share buyback programs IPO (2015 payout in July) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5 mill
Slide 7: Summary financials and guidance
Summary Financials Summary financials and guidance QUARTER 4Q2015 4Q2014 3Q2015 YoY QoQ Revenues $178.0M $227.2M $165.6M -21.7% +7.5% Gross Margin (%) 22.9% 24.7% 21.8% -1.8% +1.1% GAAP Net Income (Loss)* $6.1M** $15.6M*** $(2.3)M -60.8% +362.9% GAAP Earnings per ADS $0.036** $0.091*** $(0.014) -60.
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou • Fabless semiconductor company with Ninbo, Fuqing Fuzhou Qingdao world leading visual imaging processing technologies • Global market leader in TFT-LCD display Irvine, CA driver and timing controller ICs Design Tainan, Taiwan Headquarters Inv
Slide 9: Corporate structure
Corporate Main structure Operating Companies & Solutions : HIMX Himax Technologies, Inc. HIMAX TECHNOLOGIES, Ltd. a HIMAX DISPLAY, Inc. HIMAX IMAGING, Ltd. • Driver, TCON and P-Gamma OP • LCOS Modules for Head- • CMOS Image sensors • Touch Controllers Mounted Display, Head-up Display and Pico-projec
Slide 10: Himax inside consumer electronics
Himax inside consumer electronics DISPLAY DRIVERS In displays Display Driver TCON On Touch Panels PMIC Controller IC LED Driver WAFER LEVEL OPTICS CMOS IMAGE SENSORS P-gamma OP ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS Other 30+ POWER MANAGEMENT IC ASIC and IP & LED DRIV
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 2015 Q3 Driver Market Share HIMX Driver IC Market Share by Application Focaltech Raydium 3% 2% Others 3Q15 4Q15 MagnaChip 7% 3% 28.3% 27.3% Samsung Ilitek 4% 30% Sitronix 21.5% 5% 18.8% 17.0% Silicon Works 15.4% 14.0% 7% 12.2% Novatek 20% Synaptics 9% Himax 10% Large Panel Smartpho
Slide 14: Large panel DDIC: market trends and strategy
1 Grow large panel DDIC unit sales and market share Market Trends Panel Maker Capacity Expansion Plan Makers 4Q14 1Q15 2Q15 3Q15 4Q15 1H16 2H16 2017 2018 Continuous new TFT-LCD capacity expansion in remains G8.5 Samsung 60K(+5K) 65K(+5K) 90K 110K aggressive with a special focus on advanced display S
Slide 15: Small/medium panel DDIC: market trends and strategy
2 Grow S/M panel DDIC Launch new products Market Trends Smartphone Display Trends Tablet Display Trends 2560 QHD 2160 4K2K DDIC in smartphone and tablet applications remain the 2014 and backbone of the company as a global market share leader beyond Brand 1920 FHD 1600 Korean and Chinese smartphone c
Slide 16: LCOS Microdisplay
3 LCOS Microdisplay Design, manufacture, ship Market Trends Head mounted technology is about to change the world. AR product development for business, Front Lit LCOS Advantages industrial, search, gaming, social media, military, toy, automotive and other consumer markets • Form Factor /Compact Desig
Slide 17: Touch panel controllers
4 Touch Touch Panelpanel Controllers controllers Market Trends (Unit, mn) Touch Controller IC Addressable Market Forecast (Units) 2,368 2,500 2,232 Integration of Display & Touch by panel makers and OEMs 2,047 2,000 1,794 HIMX Strategies and Market Position 1,556 1,500 1,361 • Rapid growth since 4Q1
Slide 18: CMOS image sensors
5 CMOS CMOS Imageimage sensors Sensors Market Trends Resolution Trend by CMOS Image Sensor CIS development accelerating in functionality and new applications 2013 – 2019 8% CAGR (Unit: Mps) Advanced Wafer-Level Optics (WLO) is the future for computational 5,798 6,007 optics and 3D sensing 5,456 HIMX
Slide 19: Timing controllers
6 Timing controllers TCON Market Trends Himax eDP TCON in TV Gaining Momentum (Unit, K) TCON becoming the key enabler of next generation ultra-high resolution panel development HIMX Strategies and Market Position • The beginning of a multi-year growth with expanded adoption from MNT & NB to 4K TV •
Slide 20: 2015 YTD Financial Review
2015 YTD Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history Unit Volume Revenues (unit, M) (US$ M) 1,516 1,500 $1,000 1,400 1,337 $918 1,297 1,309 1,300 $900 $833 $841 1,200 1,152 1,156 1,165 $800 $771 1,069 $745 $737 1,100 $692 975 $700 $692 1,000 $643 $633 900 $600 $540 800 719 $500 700 600 $400 500 460 $300 $300 400 300 $200 2
Slide 22: A better balanced product mix
A better balanced product mix…. • Growing large-sized panel drivers in 2015 and beyond • Global market share leader in small and medium-sized panel driver ICs despite weak market sentiment • Further diversify products and expand customer portfolio in various segments • Increasing non-driver sales to
Slide 23: 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 $1,4 00.0 Revenues Gross Margin % (US$M) $1,2 00.0 24.5% 24.9% 23.6% 22.0% 24.5% 21.0% $918.2 $1,0 00.0 23.1% $832.8 $840.5 $770.7 20.5% $80 0.0 $737.3 19.8% $692.4 $691.8 $642.7 $633.0 $60 0.0 $40 0.0 $20 0.0 07 08 09 10 11 12 13 14 15 $- • 4Q 11 mar
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $0.57 $0.39 $250 17.2% 19.1% $0.40 $0.36 0.5 15.2% $0.30 17.3%14.2% 15.5% 15.8% 0.2 $0.21 $0.19 10.7% 14.0% $0.15 $0.06 $150 $200 0 0.1 $112.6 $150 $143.9 0 $132.5 $100 -0.5 $133.2 $117.5 $109.0 $103.5 $76
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $120 $56.3 $140 $38.1 $100.6 $41.4 $100 $90.1 $120 $37.1 $29.9 $79.5 $32.6 $80 $76.4 $100 $27.0 $23.3 $80 $60 $57.5 $49.1 $47.5 $60 $40 $91.8 $94.4 $30.1 $87.6 $40 $76.4 $79.0 $80.4 $71.3 $70.9 $20 $20 $0 $0 2008 2009 2010 20
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement December Income31,Statement 2015 For the Fiscal Period Ended 4Q-2015 4Q- 4Q-2014 3Q- 3Q-2015 FY2015 FY2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues from others, net $177,977 $227,179 $165,582 $691,789 $840,542 Revenues from related par
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet December Balance31,Sheet 2015 Balance Sheet December 31, 2015 September 30, 2015 (Unaudited) (Unaudited) December 31, 2014 (Audited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $148,340 $126,012 $187,843 Restricted ca
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement December Summary31, 2015 of Cash Flow 4Q-2015 3Q-2015 FY2015 FY2014 (Unaudited) (Unaudited) (Unaudited) (Audited) Net income (loss) $5,215 ($2,930) $21,462 $63,903 Depreciation and amortization 3,407 3,425 14,164 14,592 Share-based compensation expenses 277
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 ove
Slide 31: Contact
Contact Contact us John Mattio Jackie Chang, CFO US Investor Main: +1 (203) 885-1099 Direct: +1 (203) 885-1058 Main: +886-2-2370-3999 #22300 Relations jmattio@lamniaintl.com US Office: +1 (949) 585-9838 #252 www.lamniaintl.com jackie_chang@himax.com.tw Company Corporate Penny Lin, IR Manager Counsel