Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (August 2021)
38 slides from Himax Technologies's investor presentation, Aug 5, 2021
Slide 1: August 2021 Investor Presentation
Human Interface and Display Technologies : HIMX August 2021 INVESTOR PRESENTATION
Slide 2: Forward Looking Statements
Forward Looking Statements Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the
Slide 3: Recognized Industry Leader
Recognized Industry Leader For the last 30 years, we have worked with leading OEMs to develop the most recognized imaging and human interfacing technologies. 1990s 2000s 2010s 2018 and Beyond Founder B.S. Wu pioneers flat Chairman Wu establishes Himax to meet Himax gains market share with design Him
Slide 4: Investment Highlights
Investment Highlights Leading Imaging and Human Interfacing Technology Innovator ◼ Global display driver player with a wide range of display technologies for panels of all sizes ◼ Thousands of patents for Himax’s IP and designs ◼ Imaging technology and human interfacing total-solution provider Diver
Slide 5: Himax on NASDAQ
Himax on NASDAQ 12 Month Trading Chart Aug 4, 2021 Fiscal Year December 31 Last-Traded Price (8/4/21) $13.88 Diluted Weighted Ave. Out. ADS 174.7M Equivalent ADS Out 174.3M Market Capitalization (8/4/21) $2,416M Average Volume 4.14M Insider Ownership* 24.0% * Insider ownership includes executives an
Slide 6: History of Dividend and Share Buyback
History of Dividend and Share Buyback $651 HAS BEEN RETURNED TO SHAREHOLDERS INCLUDING DIVIDENDS AND SHARE BUYBACKS SINCE IPO MILLION Dividend Payout Ratio (%) Total Payout (US$M) Executed Share Buybacks from 2007-2021 119.0% (US$M) 100.0% 100.0% 75.0% 83.3% 75.0% 77.5% 89.0% 81.4% Unutilized Portio
Slide 7: Q2 Summary and Q3 Guidance
Q2 Summary and Q3 Guidance 2Q2021 1Q2021 2Q2020 YoY QoQ Revenues $365.3M $309.0M $187.0M +95.3% +18.2% Gross Margin (%) 47.5% 40.2% 21.0% +26.5% +7.3% Non-IFRS Profit $109.1M $67.1M $1.7M +6,199.2% +62.6% Non-IFRS Earnings per ADS $0.624 $0.384 $0.010 +6,142.6% +62.5% IFRS Profit $108.9M $66.9M $1.4
Slide 8: A Global Semiconductor Company
AForward Global Semiconductor Looking Statements Company Himax’s Global Reach ▪ Fabless semiconductor company with world leading visual imaging processing technologies ▪ Global market leader in TFT-LCD Asan, Bundang display driver and timing controller ICs Sales Design Technical Support Beijing, Sha
Slide 9: Corporate Structure
Corporate Structure Himax Technologies, Inc. Himax Technologies, LTD. Himax Display, Inc. Himax Imaging, LTD. ▪ TFT-LCD Drivers, EPD Drivers, ▪ LCoS Modules for Head- ▪ CMOS Image Sensors Micro LED Drivers and AMOLED Mounted Display, Head-up ▪ Ultralow Power Always-on Drivers Display and Pico-projec
Slide 10: Our Technologies Are Used by Consumer Brands Worldwide
Our Technologies Are Used by Consumer Brands Worldwide 10
Slide 11: Display Driver IC (DDIC)
Display Driver IC (DDIC) We are a leader in display driver ICs used to enable large, small and medium-sized flat panel displays in TFT and Touch MARKETS WE SERVE Smartphones, Tablets, Automotive, Monitors, Notebooks, TVs, Gaming, Education, Industrial, Healthcare plus 100’s more applications that us
Slide 12: Our DDIC Market Share
Our DDIC Market Share 1Q21 Driver Market Share We provide a complete solution of image processing (4Q20 Market Share %, Revenue) Solomon Systech Others technologies and leverage our expertise in TV, Monitor, 5% Megnachip 1% MediaTek 2% NB, mobile devices, automotive and other mass-market 3% Sitronix
Slide 13: TDDI Technologies
TDDI Technologies We provide technologies for touch sensor displays including in-cell touch and the fast- Smartphone Tablet Automotive growing segment of Touch and Display Driver Integration (TDDI) single-chips MARKETS WE SERVE Beginning with smartphones, expanded to tablets, automotive, and many ot
Slide 14: WLO and 3D Sensing
WLO and 3D Sensing We offer industry leading WLO design know-how and mass production expertise in structured light and ToF. Himax 3D sensing offers SLiM total solution with leading face recognition feature and key components, 3D decoder IC, to reach out diversified end applications MARKETS WE SERVE
Slide 15: Ultralow Power Smart Sensing and CIS
Ultralow Power Smart Sensing and CIS Himax Smart Sensing brings computer vision AI to edge devices with extremely low power. We participated tier-1 edge-to-cloud ecosystems for broad market access. Himax CMOS image sensors include RGB, near infrared (NIR) and ultralow power Always-on Sensor (AoS) MA
Slide 16: LCoS Microdisplays
LCoS Microdisplays We are the leader and long-term innovator of Liquid Crystal on Silicon (LCoS) displays and one of the companies capable of high-volume production runs of LCoS displays for the launch of mass-market devices Front-Lit LCoS Technology Advantages • Compact form factor, brightness, pow
Slide 17: Our Customers
Our Customers DISPLAY DRIVERS We are In Displays Display Driver TCON PMIC On Touch Panels LED Driver Controller IC P-gamma OP WAFER LEVEL OPTICS CMOS IMAGE SENSORS Others ASIC SERVICE & IP LCOS TDDI & TOUCH LICENSNING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and In Camera Modules licensing CM
Slide 18: Fabless Manufacturing Expertise
Fabless Manufacturing Expertise Display Driver CMOS Image Sensor Back-end Wafer Fabrication Package Chip Probe Testing Gold Bumping FT RW SOC Processed Tape Chip Probe Testing Chip Probe Testing Package Assembly and Testing FT 18
Slide 19: Market Opportunities by Product Application and Himax Strategies
Market Opportunities by Product Application and Himax Strategies 19
Slide 20: TDDI
GROWTH OPPORTUNITY 1 TDDI Market Trends Global Smartphone TDDI Demand Forecast ▪ Expect higher TDDI penetration in tablet and auto going forward 2019-2024 ▪ TDDI fits in consumer demand for slimmer devices (Omdia, 2021) ▪ Higher penetration of TDDI is refreshing smartphone /tablet/ Unit Demand in Mi
Slide 21: Display Driver IC (DDIC)
GROWTH OPPORTUNITY 2 Display Driver IC (DDIC) Market Trends China Takes a Leading Role in Display Panel • Chinese panel makers, benefited from Korean fab restructuring and Manufacturing and DDIC Demand increased their global market share, will procure more volume from Taiwan DDIC supply chain • Lead
Slide 22: WLO and 3D Sensing
GROWTH OPPORTUNITY 3 WLO and 3D Sensing Himax WLO for 3D Sensing Market Trends ▪ Wafer-Level Optics (WLO) remains the best technology for structured light, Time-of-Flight (ToF) related 3D sensing ▪ Very few companies can provide advanced WLO solutions to achieve optical high efficiency, small form f
Slide 23: Ultralow Power Smart Sensing and CIS
GROWTH OPPORTUNITY 4 Ultralow Power Smart Sensing and CIS Market Trends Who uses Himax CIS ▪ Smart AI devices demand boosted, but very few companies can provide ultralow power solutions in vision AI in the area of human detection, people tracking, people counting, and anti-peeking warning ▪ Adoption
Slide 24: LCoS Microdisplays
GROWTH GROWTHOPPORTUNITY OPPORTUNITY25 TDDI LCoSAdoption Rate Growth Microdisplays Front Lit LCOS Advantages Market Trends • Compact Form Factor • Brightness • Power Efficiency ▪ Many top name multinationals and start-ups are investing heavily • MP Efficiency & Readiness to develop the AR ecosystem,
Slide 25: 2021 YTD Financial Review
2021 YTD Financial Review
Slide 26: Unit and Revenue History
Unit and Revenue History We are One of the Leading Semiconductor Companies in the World Units Sold and Revenue (in millions of units and millions of USD) $1,900 1,521 1,516 Revenue 1,464 1600 $1,700 Units Sold 1,297 1,337 1,309 1,311 1,323 1400 1,256 1,156 1,165 1,192 $1,500 1,069 1200 975 $1,300 10
Slide 27: A Balanced Product Mix
A Balanced Product Mix… Category Product Mix Large Panel Drivers S/M Panel Drivers Non-Driver 2.60% 5.1% 6.7% 8.2% 12.7% 14.0% 12.5% 16.4% 20.0% 19.0% 20.0% 19.0% 18.9% 14.8% 15.5% 16.7% 22.7% 22.0% 34.8% 44.6% 44.6% 53.9% 48.6% 46.0% 45.0% 45.8% 58.1% 64.5% 53.1% 44.5% 81.9% 78.2% 71.3% 57.0% 42.7%
Slide 28: Gross Margin is a Key Business Focus
Gross Margin is a Key Business Focus Non-IFRS Measures Revenue & Gross Margin Non-IFRS Geographical Revenue Mix & Quarterly GM Measures US$M in Revenue and Quarterly Gross Margin % 200 0.0 US$M in Revenue and Gross Margin % 50. 0% China Sales ROW Sales 44.2% 180 0.0 45. 0% 2018 2019 2020 2021 Q1 Q2
Slide 29: OPEX and the Bottom Line
OPEX and the Bottom Line Non-IFRS Measures OPEX and % of Total Sales Non-IFRS Measures Profit and EPS (US$M/ %) (US$M/ US$) $230 22.9% $176 22.0% 18.1% 17.6% 15.8% 14.4% 22.2% $165 $1.01 14.5% 13.4% 11.7% 15.4% $145 $180 8.1% 11.8% 12.6% 13.6% $160 $151 $154 $156 $125 $105 $130 $120 $121 $125 $124 $
Slide 30: Performance History
Performance History Non-IFRS Measures Operating and R&D Expenses (US$M) Non-IFRS Measures EBITDA (US$M) R&D Expense Operating Expense ex. RD Total Operating and R&D Expense (US$M) 120 81 86 100 93 105 121 126 124 151 160 154 156 79 $230 $42 $39 $41 $39 $37 $49 $38 $36 $112 $27 $29 $33 $100 $102 $22
Slide 31: Gross Margin - IFRS
Gross Margin - IFRS IFRS Measures Revenue & Gross Margin IFRS Measures Geographical Revenue Mix & Quarterly GM 200 0.0 US$M in Revenue and Gross Margin % 50. 0% US$M in Revenue and Quarterly Gross Margin % China Sales ROW Sales 44.2% 180 0.0 45. 0% 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 32: OPEX and the Bottom Line - IFRS
OPEX and the Bottom Line - IFRS IFRS Measures OPEX and % of Total Sales IFRS Measures Profit and EPS (US$M/ %) (US$M/ US$) 23.2% 23.20% $230 $176 19.1% 18.4% 17.3% 17.2% 15.8% 22.8% $165 15.5% $1.01 16.8% 11.7% 10.7% 14.0% 15.2% $145 14.2% $180 $166 $159 $163 $156 $125 $144 $133 $133 $135 $105 $130
Slide 33: Performance History - IFRS
Performance History - IFRS IFRS Measures Operating and R&D Expenses (US$M) IFRS EBITDA (US$M) Measures R&D Expense Operating Expense ex. RD Total Operating and R&D Expense (US$M) 144 98 99 109 104 117 133 132 135 159 165 156 163 79 $230 $43 $41 $41 $41 $56 $39 $41 $38 $37 $33 $27 $23 $30 $101 $90 $8
Slide 34: Income Statement
Income Statement Income Statement 34
Slide 35: Balance Sheet
Balance Sheet * Short-term secured borrowing is guaranteed by restricted deposit 35
Slide 36: Cash Flow Statement
Depreciation and amortization Share-based compensation expenses Gain on disposal of property, plant and equipment, net Changes in fair value of financial assets at fair value through profit or loss Interest income Finance costs Income tax expense Share of losses of associates Inventories write downs
Slide 37: Management Team
Management 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 20 years. With 61 patents relat
Slide 38: Contact Us
Contact Us Eric Li, Chief IR/PR Officer Corporate Company Tel: +886-6-505-0880 Counsel hx_ir@himax.com.tw Karen Tiao, IR Relations SEC Legal Tel: +886-2-2370-3999 hx_ir@himax.com.tw Counsel Mark Schwalenberg, Director Investor Relations - US Representative Auditor MZ North America Tel: +1-312-261-64
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