Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (November 2014)
32 slides from Himax Technologies's investor presentation, November 2014
Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation November, 2014 Himax Technologies, Inc. 奇景光電股份有限公司
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: Himax is Changing the Way People See the World and Beyond
Himax is Changing the Way People See the World and Beyond … 2010s 2000s Display Drivers Timing Controllers ASIC Service and IP Licensing CMOS Image Sensors Display Drivers Touch Panel Controllers Timing Controllers LED Drivers / PMICs ASIC Service and IP Licensing LCOS Microdisplays Solutions CMOS I
Slide 4: Investment Highlights
Investment Highlights 1 Leading Display Driver Provider Worldwide leading display driver player with a wide range of drivers portfolio for panels of all sizes and in-house intellectual property Image technology solutions provider 2 Diversifying Revenues and Customers Top tier customers globall
Slide 5: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (10/30/14) $ 7.56 Basic Weighted Ave. Out. ADS (3Q14) 170.9M Diluted Weighted Ave. Out. ADS (3Q14) 171.8M Equivalent ADS Out. (3Q14) 171.2M Market Capitalization (10/30/14) ~$ 1.3B Insider Ownership* ~31.6% 3Q2014 3Q2013 2Q2014 YoY QoQ
Slide 6: Company Overview
Company Overview Overview Fabless semiconductor provider with world leading visual imaging Headquarter: Tainan, Taiwan processing technologies Global market leader in TFT-LCD display driver and timing controller ICs Strong growth momentum in non-driver products 200+ customers across Taiwan,
Slide 7: Himax Operating Companies
Himax Operating Companies Himax Technologies Ltd Himax Media Solutions, Inc. Driver, Tcon and P-Gamma OP ASIC Service and IP Licensing Touch Controllers Monitor and Projector Scalers Wafer Level Optics and modules for Infinity Color Technology CIS 2D to 3D Conversion In-house Color F
Slide 8: Himax's Products – Strength in Mobile Devices
Himax’s Products – Strength in Mobile Devices CMOS Image Sensors Display Drivers Wafer Level Optics Timing Controllers Display Panel (Tcon) • Display Driver • Tcon • PMIC Camera Module • LED Driver • CMOS Image Sensor • P-gomma OP • Wafer Level Optics ASIC service & IP Licensing Touch Panel NAND & D
Slide 9: Himax's Global Footprint
Himax’s Global Footprint Taiwan - HQ Japan Tainan Tokyo Headquarters Sales Design Technical support Manufacturing Operations Sales/Marketing Korea Technical support Cheonan Sales Taipei Technical support Design Suwon Sales/Marketing Sales Technical support Technical support Investor Relations Hsinch
Slide 10: Skilled Management of Complex Supply Chains
Skilled Management of Complex Supply Chains 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 Himax Proprietary & Confidential 10
Slide 11: Shipment and Revenue Track Record
Shipment and Revenue Track Record Consistent shipment growth Strong revenue rebound Volume Revenues (unit, M) (US$ M) 1,500 1,400 1,337 $1,000 $918 1,297 1,300 $900 $833 1,152 1,156 1,165 1,200 1,069 1,107 $771 $800 $745 $737 1,100 999 $692 975 1,000 $700 $643 $633 900 $575 $613 $600 $540 800 719 70
Slide 12: Improved Margin and Profitability
Improved Margin and Profitability OPEX and % of Total Sales Revenues Gross Margin (US$mm / %) (US$mm) (%) $250 17.3% 17.2% 15.2% 16.3% 14.2% 15.5% 14.0% 0.2 $1,000 10.7% $918.2 $200 0.1 24.5% 24.9% 24.4% $900 22.0% 23.1% $150 $143.9 $832.8 $117.5 0 21.0% $800 $770.7 $98.1 $98.3 $99.7 $109.0 $103.5 $
Slide 13: Quarterly Financial Performance
Quarterly Financial Performance (US$ M) Revenues $222.3 Inflection Gross Margin $220 $207.0 30% Point $200 $189.5 $190.4 $190.6 $192.8 $195.2 $194.6 $196.4 24.6% 25.1% 23.3% 24.2% $180 $169.2 $166.7 $175.7 Non-Driver 25% 22.1% 23.1% $162.1 25.3% $160 24.6% 24.7% 24.5% 20% 18.5% 22.9% 23.3% $140 $120
Slide 14: More Balanced Product Mix
More Balanced Product Mix Fast growing small and medium-sized panel driver business Increasing non-driver sales to diversify sales base and improve gross margin New product shipments from LCOS and WLO in 2014 Revenues (US$ M) $918 $833 $692 $643 $633 $737 $771 $613 100% 2.60% 5.1% 6.7% 8.2% 12
Slide 15: Customer Mix
Customer Mix Largely reduced dependence on one single customer: Diversifying product revenues by non-driver product wins and leveraging existing customers Non-Innolux revenues grew 23.0% YoY in 2013 and grew 14.5% YoY in 9M14 Innolux disposed of its entire equity holding in Himax on June 19th,
Slide 16: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback Cash Dividend Share Buyback Distributed a total of $327 million of dividend since IPO Initiated four share buyback programs totaling $158 Committed to paying annual dividends referenced million since 2007 primarily on prior year’s profitability Repurchased a t
Slide 17: Leading Display Driver Provider
Leading Display Driver Provider 2014 Q2 Driver Market Share Growing Market Share of HIMX Small/ Medium-sized Panel Driver by Application 27.5% MagnaChip 3% Others 12% 25.9% 23.4% 24.1% 22.7% Lusem 5% Novatek 21% Sitronix 3% 18.5% Illitek 5% Samsung 17% Orise 6% Raydium 3% Renesas 11% Himax 10% Silic
Slide 18: Growth Opportunity #1 – Mobile Display Drivers
Growth Opportunity #1 – Mobile Display Drivers Leading position to be solidified due to higher Display Trends for Smartphone Display Trends for Tablet resolution migration trend 2560 QHD 2160 4K2K Panel makers are direct customer but need to work closely with end-customers: 1920 FHD 1600 1536 20
Slide 19: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity #2 – CMOS Image Sensors Premium quality CMOS image sensor products to capture Resolution Trend by CMOS Image Sensor2 the US $12.3B1 market (2017): (Unit: Mps) 12-16 CAGR 4,273 14.5% High sensitivity, low noise, cost effective, and low power 3,937 consumption design in highly i
Slide 20: Growth Opportunity #3 – LCOS Micro Display
Growth Opportunity #3 – LCOS Micro Display Proprietary LCOS microdisplay solutions: Primary product focus is Head-Mounted Display Market leader of the LCOS industry (HMD), HUD and industrial applications Volume track record - over 2 mn units New design wins, and on-going pilot shipments si
Slide 21: FL-LCOS Advantages
FL-LCOS Advantages Form Factor/Compact Design Thickness<3.2mm Total size smaller than traditional LCOS and μOLED 1/3 the size of traditional LCOS panel Best for HMD application Brightness Typical luminance: 20000 nits 25 times brighter than μOLED Power Efficiency 3 times better t
Slide 22: What are Wearable Electronics?
What are Wearable Electronics? Real-time Experience Recorder With Display Without Display Source: Google; Sony; Oculus Source: Nike; uPlay; Sony; Samsung; Qualcom; Intel; Geak, MC10; O’Neil 22
Slide 23: We're all going "Iron Men"?
We’re all going “Iron Men”? Display Augmented Reality Gesture Recognition Source: Movie “ Iron Man” 23
Slide 24: Himax Solutions for Wearable Device
Himax Solutions for Wearable Device Compact and Slim Imaging Solution Augmented Reality and Virtual Reality Systems Detector Camera Array Camera Eye tracking & IR sensing Depth & 3D information Pico-projector Pico-projector LCOS microdisplay Micro light guide 24
Slide 25: Growth Opportunity #4 – Touch Panel Controller
Growth Opportunity #4 – Touch Panel Controller Sales tripled in 2012 due to increased share of sales to leading smartphone brand customer and new shipments to China handset players. With ~25% smartphone DDIC market share and solid core competence in touch controller, Himax is in close partnershi
Slide 26: Income Statement
Income Statement (US$’000) * ** *For September 30th, 2013 and forward, Himax will no longer report related party sales from Innolux. ** 3Q14 and 3Q13 staff RSU of $9.3mn and $8.2mn included 26
Slide 27: Balance Sheet
Balance Sheet September 30, 2014 September 30, 2013 December 31, 2013 (US$'000) (Unaudited) (Unaudited) (Audited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $147,671 $133,879 $128,108 Restricted cash equivalents and marketable securities 140,526 115,00
Slide 28: Summary Cash Flow
Summary Cash Flow (US$’000) 28
Slide 29: Management
Management 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 related to
Slide 30: Board of Directors
Board of Directors Position Name Title Chairman Dr. Biing-Seng Wu Founder of the Company Director Jordan Wu President and CEO, Himax Technologies, Inc. Independend Director Dr. Yan-Kuin Su President, Kun Shan University Independend Director Dr. Hsiung-Ku Chen Consultant, Color Imaging Industry Promo
Slide 31: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO Scott Powell, SVP +886-2-2370-3999 #22300 PCG Advisory Group, LLC +1-949-585-9838 #252 Main: +1-646-780-8850 jackie_chang@himax.com.tw spowell@pcgadvisory.com Nadiya Chen, IR Manager Corporate Counsel Baker & McKenzie +886-2-23
Slide 32: Drive for better vision
ee —), Himax Drive for better vision
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