Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation May, 2013 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, 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
Slide 3: Investment Highlights
Investment Highlights g g z A leading “fabless” manufacturer in TFT-LCD panel display 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 diversificat
Slide 4: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (05/24/13) $7 Basic Weighted Ave. Out. ADS (2012) 170.5M Diluted Weighted Ave. Out. ADS (2012) 170.8M Market Capitalization (05/24/13) $1,195.6 M Insider Ownership* ~46.8% 1Q2013 1Q2012 4Q2012 YoY QoQ Revenues $175.7M $166.7M $190.6M +5
Slide 5: Company Overview
Company p y Overview z Fabless semiconductor provider with world leading Headquarter: Tainan, Taiwan visual imaging processing technologies z Global market leader in TFT-LCD display driver and timing controller ICs z Pioneer in mobile projector microdisplays z Growth momentum in timing controller, t
Slide 6: Himax Operating Companies
Himax Operating p g Companies p Hi Himax T Technologies h l i Ltd Himax Media Solutions Solutions, Inc. z Display Drivers and Tcon z ASIC Service and IP Licensing z Touch Controllers z Monitor and Projector Scalers z Wafer Level Optics and modules z Infinity Color Technology for CIS z 2D to 3D Conve
Slide 7: Himax's Products – Strength in Mobile Devices
Himax’s Products – Strength g in Mobile Devices CMOS Image Sensor with FSI/BSI Technologies Display Driver IC (Handset/CE /OA/TV) z Main supplier for higher-end (non-VGA) segments in NB z World leader in display driver IC, covering all panel makers for z Advanced FSI/BSI in high resolution for mobil
Slide 8: Skilled Management of Complex Supply Chains
Skilled Management g of Complex p Supply pp y Chains Display Driver and CMOS Sensor Supply Chain Wafer Fabrication Gold Bumping / Packaging Processed Tape Chip Probe Testing Assembly and Testing / FT and RW 8
Slide 9: Himax's Global Footprint
Himax’s Global Footprint p Taiwan - Headquarters Tainan T i Headquarters Design Manufacturing Operations S l /M k ti Sales/Marketing Technical support Taipei Design Sales/Marketing Technical support Hsinchu Design Sales/Marketing Technical support U.S. China Japan Korea Irvine Beijing Ninbo Shenzhen
Slide 10: Shipment and Revenue Track Record
Shipment p and Revenue Track Record Consistent shipment growth Volume Revenues (unit, M) (US$ M) 10
Slide 11: Gross Margin and Net Income (2007~2012)
Gross Margin g and Net Income ((2007~ 2012)) Gross Margin (%) (US$ M) (US$ M) (US$ M) (%) z 2011 4Q marks the inflection z Successful transformation z OPEX 2012 vs. 2011 z 2012 EPS increased point for gross margin in 2012 to increase sales excluding one-time items 3.9 times to $30.0 cents expansion
Slide 12: Quarterly Financial Performance
Quarterly y Financial Performance (US$ M) Revenues (%) Gross Margin $190.4 $190.6 $189.5 $169.2 $175.7 $160.6 $162.1 $166.7 $141.1 N -Driver Non- Non Di S/M Large z Successfully embarked on business z 1Q13 GM is the highest GM level since transformation in 4Q11 3Q08 z Gross margin improvement contin
Slide 13: Product Mix
Product Mix More balanced product mix: z Fast growing small and medium-sized panel driver z Increasing percentage of non-driver products to diversify sales base and contribute higher gross margin z Moved away from low-margin feature phones Revenues $918 $833 $692 $643 $633 $737 $175.7 (US$ M) 100% 2
Slide 14: Revenue Breakdown
Revenue Breakdown Largely reduced dependence on one single customer: z Innolux Display Corporation is the world’s third largest panel manufacturer that owns 15.0% of HIMX z Innolux made up only 25.0% of revenues in 1Q13, down from a high of 68.8% i 4Q09 in 4Q09, reflecting fl ti strength t th iin no
Slide 15: 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 four (4) share buyback programs totaling dividend since IPO ~$158 million since 2007 and repurchased a total of 46.5 million ADSs aggregately through March 31,
Slide 16: Worldwide Flat Panel Display Forecast
Worldwide Flat Panel Display p y Forecast (Source: DisplaySearch) z Smartphone and tablet are expected to grow at stronger annual growth rates z G Growth th in i Chi China outpaces t other th regions i 16
Slide 17: Leading Display Driver Provider
Leading g Display p y Driver Provider 2012Q4 Fabless Display Driver Market Share Growing Market Share of HIMX Small/ Medium-sized Panel Driver by Application z One of the leading players in display driver ICs z Strong growth in small and medium-sized medium sized z Key differentiation from IC peers
Slide 18: Growth Opportunity #1 – Smartphone Display Drivers
Growth Opportunity pp y #1 – Smartphone p Display p y Drivers z Technology leader in smartphone driver ICs including hVGA, nHD, WVGA, qHD and HD720 z Strong grow momentum from 1-tier international and China brands and China white-box market z Leading position to be solidified due to higher resolutio
Slide 19: Display Trends for Smartphone
Display p y Trends for Smartphone p z For the entry smartphone WVGA expected to be mid-to-entry in 2012 to 2013; Low-cost oriented z For high-end smartphone Himax is ready for high high-end end smart phones with HD720/ WXGA with LTPS/ GIP 2013 FHD @ 4.7”/ 5.0”/ 5.3” Æ 469ppi / 441ppi / 416ppi
Slide 20: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity pp y #2 – CMOS Image g Sensors z Premium quality CMOS image sensor products Traditional camera module t capture to t the th US$11 US$11.3B 3B market k t (2016) (2016): Wafer level High sensitivity and low noise design in highly camera module integrated products T Targeting ti
Slide 21: Growth Opportunity #3 – Touch Panel Controller
Growth Opportunity pp y #3 – Touch Panel Controller z Sales tripled in 2012 due to increased share of sales to leading smartphone brand customer t and d new shipments hi t tto China Chi h handset d t players l z Expanding product offerings to cover larger panels for tablet applications, targeting bo
Slide 22: Growth Opportunity #4 – LCOS Micro Display
Growth Opportunity pp y #4 – LCOS Micro Display p y z Proprietary LCOS pico-projector z Primary product focus is Head- solutions: Mounted Display (HMD) Successfully adopted in camera and LCOS technology superior to other handset applications competing technologies in HMD Volume track record -
Slide 23: Income Statement
Income Statement (US$’000) 1Q-2013 1Q-2012 4Q-2012 Y2012 Y2011 For the Fiscal Period Ended (Unaudited) U dit d) (U (Unaudited) dit d) (Una dited) (Unaudited) (A dit d) (Audited) (A dit d) (Audited) Revenues from others, net $131,717 $103,473 $129,973 $485,281 $374,788 Revenues from related parties,
Slide 24: Balance Sheet
Balance Sheet (US$’000) March 31, 2013 March 31, 2012 December 31, 2012 (Unaudited) (Unaudited) (Audited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $158,884 $102,081 $138,909 q Restricted cash equivalents and marketable securities 74,100 , 84,200 , 74
Slide 25: Summary Cash Flow
Summary y Cash Flow 1Q-2013 1Q-2012 4Q-2012 2012FY 2011FY (US$’000) (US$ 000) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Net income $12,578 $11,041 $14,016 $50,138 $9,507 Depreciation and amortization 3,155 3,313 3,669 13,299 12,795 Share-based compensation expenses 456 517 458 1,936 4,
Slide 26: Management
Management g 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 p panel industryy for over 20 yyears. With 61 p patents re
Slide 27: 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 28: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO John Mattio, SVP +886-2-2370-3999 #22300 MZ Group +1-949-585-9835 +1 949 585 9835 #252 Main: +1-212-301-7130 jackie_chang@himax.com.tw Mobile: +1-203-297-3911 Penny Lin, IR Manager john.mattio@mzgroup.us +886-2-2370-3999 #22320
Slide 29: Drive for better vision
—) Himax Drive for better vision