Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (November 2016)
31 slides from Himax Technologies's investor presentation, November 2016
Slide 1: Investor Presentation
: HIMX Investor Presentation November, 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 gains market share with Himax leads LCOS development flat panel technologies at meet DDIC demand for large design wins with leading and innovation of new display Chi
Slide 4: Himax's Highlights
Investment Investment Himax's Highlights highlights TOP THREE driver I/C position and global 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 (11/09/16) $7.46 Basic Weighted Ave. Out. 172.3M ADS Diluted Weighted Ave. Out. 172.4M ADS Equivalent ADS Out. 172.0M Market Capitalization (11/09/16) $1.3B Insider Ownership* 31.5% * Insider ownership includes e
Slide 6: Shareholder focused. Returning profits
Shareholder focused. Returning profits Dividends Share Buy Back • Distributed a total of $400 million of dividend since • Initiated four share buyback programs 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 3Q2016 3Q2015 2Q2016 YoY QoQ Revenues $218.1M $165.6M $201.1M +31.7% +8.5% Gross Margin (%) 25.6% 21.8% 26.1% +3.8% -0.5% GAAP Net Income (Loss) $13.6M**** $(2.3)M $19.8M +683.1% -31.3% GAAP Earnings (Loss) per ADS $0.079**** $(0.014) $0.115
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou Ninbo, Ninbo, Fuqing, Fuqing, Fuzhou • Fabless semiconductor company with Foshan, Foshan, Wuhan, Shenzhen, Hefei, Qingdao, Xiamen Tokyo world leading visual imaging processing Sales Sales technologies Design Technical Support Technical Support
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 Q2 Driver Market Share HIMX TFT Driver IC Market Share by Application ( 1Q16 Market Share %) 1Q16 2Q16 Others 3Q16 Ilitek4% 13% Samsung 35.6% 22% 32.3% Focaltech (24%) 4% 26.6% Raydium 22.7% 22.5% 22.0% 4% 19.8% 18.7% Novatek 18.3% 18.3% 16.4% Sitronix 5% 17% 16.1% (17%) Magna
Slide 14: Grow large panel DDIC unit sales and market share
1 Grow large panel DDIC unit sales and market share Market Trends • Continuously aggressive new Gen 8.5 and Gen 10 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 September 2016 and by 2019, its
Slide 15: Grow S/M panel DDIC, launch new products
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: LCOS Microdisplay
3 LCOS Microdisplay Design, manufacture, ship Market Trends • AR product development for business, industrial, search, gaming, mobile, social media, military, toy, automotive, wearable, toy and consumer markets Front Lit LCOS Advantages • Compact Form Factor • LCOS recognized as the technology of ch
Slide 17: Touch panel controllers
4 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 H • IMX Strategies an
Slide 18: CMOS image sensors and WLO
5 CMOS CMOS Imageimage sensors and WLO Sensors Market Trends Ultra Low Power Sensor Applications • CIS development accelerating in functionality and new applications • Advanced Wafer-Level Optics (WLO) is the future for AR devices, computational optics and 3D sensing HIMX Strategies and Market Posit
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 • Continuously aggressive new Gen 8.5 and Gen 10 TFT-LCD capacity expansion in China with a special focus on advanced display tec
Slide 20: 2016 YTD Financial Review
2016 YTD Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history Strong growth prospect across all major product lines in 2016 Unit Volume Revenues (unit, M) (US$ M) 1,516 1,500 $1,000 $918 1,400 1,337 1,297 1,309 $900 1,300 $833 $841 1,200 1,152 1,156 1,165 $800 $771 $745 $737 1,069 1,081 1,100 $692 $700 $692 1,000 975 $643 $633 $600
Slide 22: A better balanced product mix
A better balanced product mix…. • Growing large-sized panel drivers in 2015 and beyond • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • LCOS microdisplay and Wafer Level Optics: Positive top and b
Slide 23: A diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Gross margin is a key business focus
Gross marginis a key business focus Gross margin Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM (US$M) 30. 0% (US$M) Better product mix lifts blended margin 25.9% $1,4 00.0 24.5% 24.6% 24.5% 23.1% 23.6% 25. 0% China Sales ROW Sales $1,2 00.0 22.0% GM 25.6% 20.5% 21.0% 19.8% GM 26.
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $250 17.3% 19.1% $0.57 17.2% 17.2% $0.39 14.2% 15.5% 15.2% 15.8% $0.40 10.7% 14.0% $0.30 $0.36 $0.27 0.5 $0.21 $0.19 $0.15 $200 $0.06 $150 0 $112.6 $150 $143.9 $133.2 $132.5 -0.5 $117.5 $100 $109.0 $98.1 $
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $120 $143.9 $140 $133.2 $132.5 $100.6 $100 $117.5 $90.1 $120 $56.3 $108.9 $41.4 $79.5 $103.5 $38.1 $103.0 $80 $76.4 $98.3 $99.7 $100 $37.1 $32.6 $27.0 $23.3 $29.9 $29.0 $63.1 $80 $60 $57.5 $49.1 $47.5 $60 $40 $87.6 $91.8 $94.
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement September Income30,Statement 2016 US$’000 3Q-2016 3Q-2015 2Q-2016 Y2015 Y2014 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues $218,081 $165,582 $201,074 $691,789 $840,542 Cost of revenues 162,348 129,510 148,596 528,
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet September Balance30,Sheet 2016 September 30, 2016 June 30, 2016 September 30, 2015 US$’000 Balance Sheet (Unaudited) (Unaudited) (Unaudited) Assets Current Assets: Cash and cash equivalents $140,805 $164,423 $106,387 Investments in marketable securities available-
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement September Summary30, 2016 of Cash Flow 3Q-2016 2Q-2016 2015FY 2014FY (Unaudited) (Unaudited) (Audited) (Audited) US$’000 Net income $13,391 $19,273 $21,462 $63,903 Depreciation and amortization 3,393 3,465 14,164 14,592 Share-based compensation expenses 378
Slide 30: Founders and management & Board team
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
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