Slide 1: Drive for better vision – Investor Presentation August 2012
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation August, 2012 Himax Technologies, Technologies Inc. Inc 奇景光電股份有限公司
Slide 2: Forward Looking Statements
Forward Looking g Statements Factors that could cause actual events or results to differ materially include 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 d
Slide 3: Investment Highlights
Investment Highlights g g z A leading g “fabless” manufacturer in TFT-LCD p panel display p y drivers Pioneer in technology with a complete portfolio of display drivers for panels in all kind of sizes Business model with sophisticated supply chain management expertise z Product and customer dive
Slide 4: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (08/27/12) $1.80 Basic Weighted Average Outstanding ADS (2011) 176.9M Diluted Weighted Average Outstanding ADS (2011) 176.9M Equivalent ADS Outstanding (Q2 2012) 169.5M Market Capitalization (08/27/12) $305.1M Insider Ownership* ~46.8%
Slide 5: Company Overview
Company p y Overview z Fabless semiconductor provider with world leading Headquarter: Tainan, Taiwan visual imaging processing technologies z Global market leader in TFT-LCD display driver and timing controller ICs z Pioneer in mobile projector microdisplays z Growth momentum in touch panel controll
Slide 6: Display Driver ICs & Timing Controllers
Display p y Driver ICs & Timing g Controllers Display driver ICs and timing controllers are used in TVs, laptops, monitors, mobile phones tablets phones, tablets, digital cameras, car navigation, and many other consumer electronics devices. 6
Slide 7: Himax Operating Companies
Himax Operating p g Companies p Hi Himax T Technologies h l i Ltd Himax Media Solutions Solutions, Inc. z Display Drivers and Tcon z ASIC Service and IP Licensing z Touch Controllers z Monitor and Projector Scalers z Wafer Level Optics and modules z Infinity Color Technology for CIS z 2D to 3D Conve
Slide 8: Skilled Management of Complex Supply Chains
Skilled Management g of Complex p Supply pp y Chains Wafer Fabrication L Large Panel P l Display Di l Driver Di Supply S l Chain Ch i Gold Bumping Processed Tape Chip Probe Testing Assembly and Testing 8
Slide 9: Himax's Global Footprint
Himax’s Global Footprint p Taiwan - Headquarters Tainan T i Headquarters Design Manufacturing Operations S l /M k ti Sales/Marketing Technical support Taipei Design Sales/Marketing Technical support Hsinchu Design Sales/Marketing Technical support U.S. China Japan Korea Irvine Beijing Ninbo Shenzhen
Slide 10: Shipment and Revenue Track Record
Shipment p and Revenue Track Record Consistent shipment growth Volume Revenues (unit,M) (US$ M) 10
Slide 11: Gross Margin and Net Income (2007~2012 1H)
Gross Margin g and Net Income ((2007~20121H)) z With better product mix, gross margin has improved to 22.1% in 4Q11, 22.9% in 1Q12 and 23.1% in 2Q12, the third consecutive quarter of GM improvement z G Gross margini off 2Q12 iis th the highest hi h t llevell since i 4Q08 z Improvement will continue
Slide 12: Quarterly Financial Performance
Quarterly y Financial Performance z 1H12 Revenues outperformed peers z Gross margin improvement due to better product mix z More controlled OPEX z Continuous R&D commitment z Positive profitability outlook Revenues Gross Margin (US$ M) (%) $189 5 $189.5 $169.2 $166.7 $160.6 $162.1 Non--Driver Non $1
Slide 13: Product Mix
Product Mix More balanced product mix: z Fast growing small and medium-sized panel driver z Increasing non-driver products Revenues $918 $833 $692 $643 $633 $190 (US$ M) 100% 2.60% 5.1% 6.7% 8.2% 12.7% 13.7% 15 50% 15.50% 16 7% 16.7% 80% 22.0% 34.8% 44.6% 44.2% 60% 40% 81.9% 78.2% 71.3% 57.0% 20% 42
Slide 14: Panel and Component Makers 2Q12 Top Line
Panel and Component p Makers 2Q12 Top p Line Revenues Revenues 2012 2Q 2012 1H 2012 2Q 2012 1H QoQ YoY YoY QoQ YoY YoY Driver IC Makers: Component Makers: Himax (consolidated) 13.7% 18.0% 18.1% Optimax / 力特光電 2.5% 7.0% -6.0% Novatek / 聯詠 (3034.TW) 14.1% -8.2% -9.2% ROEC / 瑞儀光電 10.1% 58.0% 29.4% Rayd
Slide 15: Revenue Breakdown
Revenue Breakdown Largely reduced dependence on one single customer: z Chimei Innolux Corporation is the world’s third largest panel manufacturer that owns 14.9% of HIMX z Revenue in 2Q12 down to 33.4% from as high as 66.5% in 1Q08, reflecting strength in our non non-large large panel driver busines
Slide 16: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback y Cash Dividend Per ADS Share Buyback Programs z Cumulatively distributed ~$239 million of cash z Initiated 4 share buyback programs totaling dividend since IPO ~$158 million since 2007 z $11million in 2012 paid on July 25, 2012, $21 z With regards to the Company’s $2
Slide 17: Global Display Driver Market
Global Display p y Driver Market z Compared with maturing large display drivers, small and medium display p y drivers will continue to g grow in next few yyears z Smartphone and tablet segments continue at stronger annual growth rates T t l Display Total Di l Driver Di Market M k t Outlook O tl k (u
Slide 18: Himax Display Driver Market Share (2011)
Himax Display p y Driver Market Share ((2011)) z One of the leading players in display driver IC designs z Superior growth in small/medium-sized display driver market driving overall growth momentum Large-sized Panel Driver Small/Medium-sized Panel Driver Growing Market Share of HIMX Others Ilitek S
Slide 19: Growth Opportunity #1 – Smartphone Display Drivers
Growth Opportunity pp y #1 – Smartphone p Display p y Drivers z Technology leader in smartphone di driver IC ICs including i l di hVGA hVGA, nHD, HD WVGA, qHD and HD720 z Stronggggrow momentum from international and Chinese smartphone brands z Anticipate growth opportunity to continue in 2012 and be
Slide 20: Display Resolution Trends for Smartphone
Display p y Resolution Trends for Smartphone p z For the entry smart phone Mainstream is HVGA now; WVGA expected to be mid-to-entry in 2012 to 2013 Low-cost oriented z For high-end smart phone Himax is ready for high-end high end smart phones with HD720/ WXGA with LTPS/ GIP Eg., 4.3” HD720 Æ
Slide 21: Recent Smartphone Display Market Trend
Recent Smartphone p Display p y Market Trend Lenovo A60 ZTE KIS LG Optimus L3 HVGA Samsung Galaxy Mini2 UMEOX X2 Alcatel OT995 Coolpad Coolpad 9910 Coolpad Coolpad 5860 Lenovo A750 ZTE Blade II WVGA G ZTE Skate Acqua HTC One V Samsung Galaxy S WIFI Samsung Galaxy Beam N ki Lumia Nokia L i 610 ZTE Er
Slide 22: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity pp y #2 – CMOS Image g Sensors Traditional Camera Module Traditional camera z Premium P i quality lit CMOS iimage sensor module Wafer level products to capture the US$10 bn camera module market (2015): High Hi h sensitivity iti it and d llow noise i d design i iin highly integra
Slide 23: Growth Opportunity #3 – Touch Panel Controller
Growth Opportunity pp y #3 – Touch Panel Controller z Successfully mass-produced and shipped our multi-touch capacitive touch controllers to a world leading g smartphone p brand leader in 2011 z Himax has been awarded with multiple new projects with that same customer in 2012 z With high product qua
Slide 24: Growth Opportunity #4 – LCOS Micro Display
Growth Opportunity pp y #4 – LCOS Micro Display p y Microdisplay Applications z Proprietary LCOS pico-projector HMD Story beam Data projector solutions: Successfully adopted in camera and handset applications Ph Phone embedded b dd d projector j t St d l Standalone pico i projector j t Cumulativ
Slide 25: Income Statement
Income Statement (US$’000) 2Q-2012 2Q-2011 1Q-2012 Y2011 For the Fiscal Period Ended (Unaudited) ((Unaudited)) (Unaudited) ((Audited)) Revenues from others, net $126,164 $92,450 $103,473 $374,788 Revenues from related parties, net 63,346 68,129 63,220 258,233 Revenues 189,510 160,579 166,693 633,021
Slide 26: Balance Sheet
Balance Sheet June 30, 2012 June 30, 2011 March 31, 2012 December 31, 2011 (Unaudited) (Unaudited) (Unaudited) (Audited) (US$’000) (US$ 000) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $103,159 $104,061 $102,081 $106,329 Restricted cash equivalents and
Slide 27: Summary Cash Flow
Summary y Cash Flow 2Q-2012 2Q-2011 1Q-2012 2011FY (Unaudited) (Unaudited) (Unaudited) (Audited) (US$’000) Net income $14,917 $2,779 $11,041 $9,507 Depreciation and amortization 3,165 3,172 3,313 12,795 Share-based compensation expenses 510 1,159 517 4,190 Inventories write downs 4,115 1,804 2,617 9
Slide 28: Management
Management g Dr. Biing-Seng Wu, Chairman of the Board - Previously Dr. Wu served as President, CEO and a director of Himax Taiwan. Dr. Wu has been active in the TFT-LCD panel i d t for industry f over 20 years and d is i a memberb off the th boards b d off the th Taiwan T i TFT LCD TFT-LCD Associati
Slide 29: Board of Directors
Board of Directors Position Name Title Chairman Dr. Biing-Seng Wu Founder of the Company Independend Director Dr. Yan-Kuin Su President, Kun Shan University Independend Director Dr. Hsiung-Ku Chen Consultant, Color Imaging Promotion Office Independend Director Yuan-Chuan Horng Assistant Vice Preside
Slide 30: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO John Mattio, SVP +886-2-2370-3999 #22300 MZ Group jackie chang@himax com tw jackie_chang@himax.com.tw Main: +1-212-301-7130 Penny Lin, IR Manager Mobile: +1-203-297-3911 +886-2-2370-3999 #22320 john.mattio@hmzgroup.us penny_lin
Slide 31: Drive for better vision
—) Himax Drive for better vision