Slide 1: 2024 Q2 Earnings Update
Drive for better vision : HIMX 2024 Q2 Earnings Update
Slide 2: Earnings Call Presenters
Earnings Call Presenters Jordan Wu Jessica Pan Eric Li President and Chief Financial Officer Chief IR/PR Officer Chief Executive Officer 1
Slide 3: 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 4: Q2 Financial Summary
2024 Q2 Financial Summary Revenues Exceeded Guidance US$M 2024 Q2 Sales $250.0 GM & EPS In-Line with Guidance Non-Driver $41.8 Revenues $239.6M Beat $200.0 • +15.5% QoQ • Guidance: Increase 8% to 13% QoQ $150.0 SMDDIC GM 32.0% In-line $158.8 • +2.7% QoQ $100.0 • Guidance: 31.5% to 33.5% $50.0 EPS 16
Slide 5: Q2 Financial Summary by Segment
2024 Q2 Financial Summary by Segment LDDIC Revenue $39.0M 2024 Q2 Sales Portfolio • +24.7% QoQ • Customer’s restocking in TV & monitor • Orders increased for shopping festivals LDDIC 16.3% SMDDIC Revenue $158.8M Beat • +10.1% QoQ Non-Driver SMDDIC • Stronger-than-anticipated sales in TDDI of 17.4% 6
Slide 6: Q2 Financial Summary
2024 Q2 Financial Summary Revenues $239.6M Operating Operating Operating +15.5% QoQ / +2.0% YoY Expenses Income Margin $47.3M $29.3M 12.2% -6.7% QoQ COGS $163.0M -11.1% YoY Gross Margin 32.0% Net Profit $29.6M +2.7% QoQ / +10.3% YoY 1Q24 $12.5M / 2Q23 $0.9M EPS 16.9 cents Gross Profit $76.6M 1Q24 7.
Slide 7: Balance Sheet as of June 30, 2024
Balance Sheet as of June 30, 2024 Q2 Cash Balance Declined Q2 Free Cash Balance • Refunds of customers’ deposits $253.8M • FOCI investment $16M Q3 Cash Balance to Decline Q2 Inventories • Cash dividends $50.7M $203.7M • Employee bonus awards $30.7M (est.) INVENTORY LEVEL $500.00 $410.10 $400.00 $370
Slide 8: Q3 Guidance
2024 Q3 Guidance Revenues Decrease 12% to 17% sequentially Gross Margin Around 30% Around 1.5 cents to 4.5 cents per Net Profit* diluted ADS Note *: The net profit already factored in the estimated expense of $14.2M, including $11.3M from vested portion of 2024 estimated annual bonus and $2.9M from
Slide 9: Q3 Outlook
2024 Q3 Outlook Conservative Q3 forecast • Persisting macroeconomic uncertainty • Panel customers’ strict output control for lean inventory Disappointing Q2 China auto sales / US & EU relatively stable • Even with promotional activities and government subsidies • Led to excessive inventories through
Slide 10: Q3 Outlook - Automotive
2024 Q3 Outlook - Automotive Optimistic about auto business and committed to long-term innovation and development of auto products Positive growth trajectory in auto display market • Versatile innovations and technology advancements • Megatrend towards higher quantities/sizes/sophistication As marke
Slide 11: Q3 Outlook – Strategic Investments
2024 Q3 Outlook – Strategic Investments FOCI – innovative LPO/CPO for advanced MCM • Acquired 5.3% equity stake through private placement • Integrate Himax WLO with FOCI’s optical fiber know-how for LPO/CPO, crucial for fast growing cloud AI and HPC • Application versatility of Himax WLO technology
Slide 12: Q3 Outlook - LDDIC
2024 Q3 Outlook - LDDIC Q3 LDDIC sales to decrease double digit QoQ Monitor sales down double digit; TV sales down single digit QoQ • High order replenishment for Q2 shopping festivals • Conservative customer procurement due to sluggish market Notebook decent sales increase QoQ • Customer restocking
Slide 13: Q3 Outlook - SMDDIC
2024 Q3 Outlook - SMDDIC Q3 SMDDIC sales to decrease low teens QoQ Auto to decrease high teens QoQ, following high Q2 growth • Q1-3 auto sales up mid-teens YoY • 450 TDDI design-wins with only ~30% in MP, significant growth potential Auto customers adopting Himax TDDI/LTDI with local dimming Tcon fo
Slide 14: Q3 Outlook - SMDDIC
2024 Q3 Outlook - SMDDIC Smartphone to increase double digit QoQ • New product launches by key customers Tablet to decline QoQ 13
Slide 15: OLED Business Update
OLED Business Update Auto OLED • DDIC/Tcon/Touch • Partnership with leading KR, CN & JP panel makers • Auto OLED touch >45 dB SNR for glove-wearing/wet-finger operations; MP in Q3 NB/Tablet OLED • DDIC/Tcon/Touch • Partnership with leading KR & CN panel makers • MP later this year Smartphone OLED •
Slide 16: Tcon Business Update
Tcon Business Update Q3 Tcon to decline double digit QoQ • Monitor customers pulled forward purchase in Q2 • Auto Tcon to increase decent double digit in Q3 • Auto Tcon fueled by increased shipment from previous design-wins, despite market headwinds Promising progress in Tcon new areas • Tablet OLED
Slide 17: WiseEye Ultralow Power AI Sensing
WiseEyeTM Ultralow Power AI Sensing On-device tinyML total solutions WiseEyeTM • Ultralow power AI processor Drive for AI Everywhere • AoS CMOS image sensor • CNN based AI algorithm Battery-powered AI • Single digit mW power Innovative Smart Innovative new AI features in door locks Door Locks • 24/7
Slide 18: WiseEye PalmVein Authentication
WiseEye PalmVein Authentication Released in 24Q1 WiseEyeTM PalmVein Powered by WiseEye2 processor Proprietary Himax palm vein authentication algorithm Only solution for battery- powered biometric authentication Door lock, access control, Swift authentication <100 ms notebook and automotive Singl
Slide 19: WiseEye Module Solution
WiseEye Module Solution Broaden market reach & shorten PnP WiseEye Modules development cycle • Plug-and-play modules • Low-code / no-code AI Leverage NVIDIA TAO toolkit Low-Code / No-Code AI • Easy optimization and 3 2 quantization on resource- 1 constrained AI People Counting Face Detection Face Me
Slide 20: Enhancing AI Imaging with Thermal Sensing
Enhancing AI Imaging with Thermal Sensing Strategic investment in Obsidian Sensors • Revolutionary thermal imaging • High resolution & low cost VGA or higher resolution for superior thermal imaging Expand sensor capability Low-cost production at high volumes • Thermal imaging to enrich Ideal f
Slide 21: WLO for LPO/CPO
WLO for LPO/CPO Strategic investment in FOCI • 5.3% equity stake Cutting-edge LPO/CPO Know-how integration of both Solutions Himax & FOCI • Industry leading LPO/CPO solution for generative AI & HPC • Meeting customers’ near- Source: FOCI website term production goal Enhanced bandwidth • Cutting-ed
Slide 22: Accounting Method for FOCI Investment
Accounting Method for FOCI Investment FOCI is listed on the TPEx Stock price fluctuations are recognized as changes in owners' equity, not affecting our P&L Upon disposal, the resulting investment gain/loss will also be recognized as change of equity, not affecting our P&L The accounting method refl
Slide 23: Himax
— Himax Drive for better vision 22
Slide 24: 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 Counsel hx_ir@himax.com.tw Mark Schwalenberg, Director Investor Relations - US Representative Auditor MZ North America Tel: +1-312-261-64