Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (February 2014)
27 slides from Himax Technologies's investor presentation, February 2014
Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation February, 2014 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 1 Leading Display Driver Provider z Worldwide leading display driver player with a wide range of drivers portfolio for panels of all sizes and in-house intellectual property z Image technology solutions provider 2 Diversifying Revenues and Customers z Top tier customers glo
Slide 4: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (02/13/14) $ 14.13 Basic Weighted Ave. Out. ADS (2013) 170.2M Diluted Weighted Ave. Out. ADS (2013) 171.8M Equivalent ADS Out. (4Q2013) 170.5M Market Capitalization (02/13/14) ~$ 2.4B p Insider Ownership* ~31.7% 4Q2013 4Q2012 3Q2013 YoY
Slide 5: Company Overview
Company p y Overview Overview z Fabless semiconductor p provider with world leading g visual imaging g g Headquarter: Tainan Tainan, Taiwan processing technologies z Global market leader in TFT-LCD display driver and timing controller ICs z Strong growth momentum in non-driver products z 200+ custom
Slide 6: Himax Operating Companies
Himax Operating p g Companies p Himax Technologies Ltd Himax Media 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 for z Infinity Color Technology CIS z 2D to 3D Conversion z In-house Colo
Slide 7: Himax's Products – Strength in Mobile Devices
Himax’s Products – Strength g in Mobile Devices CMOS Image Sensors Display Drivers Wafer Level Optics Timing Controllers (Tcon) Display Panel • Display Driver • Tcon Camera Module • PMIC • CMOS Image Sensor • LED Driver • Wafer Level Optics ASIC service & IP Licensing Touch Panel NAND & DRAM • Contr
Slide 8: Skilled Management of Complex Supply Chains
Skilled Management g of Complex p Supply pp y Chains Display Driver CMOS Image Sensor Back-end Wafer Fabrication CSP / TSV Chip Probe Testing Gold Bumping FT RW Processed Tape Chip Probe Testing Assembly and Testing 8
Slide 9: Himax's Global Footprint
Himax’s Global Footprint p Taiwan - Headquarters Tainan Headquarters Design Manufacturing Operations Sales/Marketingg Technical support Taipei Design Sales/Marketing pp Technical support Investor Relations Hsinchu Design Sales/Marketing Technical support U.S. China Japan Korea Irvine Beijing Ninbo S
Slide 10: Shipment and Revenue Track Record
Shipment p and Revenue Track Record Consistent shipment growth Strong revenue rebound Volume Revenues (unit, M) (US$ M) 10
Slide 11: Improved Margin and Profitability
Improved p Margin g and Profitability y (%) Gross Margin Revenues OPEX and % of Total Sales GAAP Net Income and EPS 30% 24.5% 24.9% (US$ M) (US$ M) (US$ M) 25% 23.1% $1,000 22.0% $200 $1501 0 0 . 0 0 % 20.5% 21.0% 19.8% 8 0 . 0 0 % $918.0 20% 6 0 . 0 0 % $900 $0.57 17.2% 14.0% 15.2% 4 0 . 0 0 % $832
Slide 12: Quarterly Financial Performance
Quarterly y Financial Performance (US$ M) Revenues Inflection Gross Margin $220 $207.0 30% $195.2 Point $200 $189.5 $190.4 $190.6 $192.8 $175.7 24.6% 25.3% 25.1% 24.6% $180 $169.2 $166.7 Non-Driver 25% 22.9% 23.1% 23.3% 23.3% $162.1 22 1% 22.1% $160 20% 18.5% $140 $120 84 87 85 111 81 72 91 101 15%
Slide 13: More Balanced Product Mix
More Balanced Product Mix z Fast g growing g small and medium-sized panel driver business z Increasing non-driver sales to diversify sales base and improve gross margin z New product shipments from LCOS and WLO in 2014 Revenues (US$ M) $918 $833 $692 $643 $633 $737 $771 100% 2.60% 5.1% 6.7% 8.2% 12.
Slide 14: Customer Mix
Customer Mix Largely reduced dependence on one single customer: z Diversifying product revenues by non-driver product wins and leveraging existing customers z Non-Innolux revenues increased 23.0% YoY in 2013 z Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its stat
Slide 15: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback y Cash Dividend Share Buyback z Distributed a total of $281 million of dividend since IPO z Initiated four share buyback programs totaling $158 z Committed to paying annual dividends referenced million since 2007 primarily on prior year’s profitability z Repurchased a
Slide 16: Leading Display Driver Provider
Leading g Display p y Driver Provider 2013 Q3 Display Driver Market Share Growing Market Share of HIMX Small/ M di Medium-sized i d Panel P l Driver Di b Application by A li ti 30.4% 26.3% 23.9% 22.3% 19.3% 15.8% Smartphone Tablet Auto 4Q12 4Q13 z One of the leading players in display driver ICs z S
Slide 17: Growth Opportunity #1 – Mobile Display Drivers
Growth Opportunity pp y #1 – Mobile Display p y Drivers z Leading position to be solidified due to higher Display Trends for Smartphone Display Trends for Tablet resolution migration trend 2560 QHD 2160 4K2K z Panel makers are direct customer but need to work closely with end-customers: 1920 FHD 160
Slide 18: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity pp y #2 – CMOS Image g Sensors z Premium quality CMOS image sensor products to capture Resolution Trend by CMOS Image Sensor2 the US $12.3B1 market (2017): (Unit: Mps) 12-16 CAGR 4,273 , 14.5% High sensitivity, sensitivity low noise, noise cost effective, effective and low power
Slide 19: Growth Opportunity #3 – LCOS Micro Display
Growth Opportunity pp y #3 – LCOS Micro Display p y z Proprietary LCOS microdisplay solutions: z Primary product focus is Head-Mounted Display Market leader of the LCOS industry (HMD) and HUD Successfully adopted in camera and handset applications New design wins wins, and on-going pilot shipm
Slide 20: Growth Opportunity #4 – Touch Panel Controller
Growth Opportunity pp y #4 – Touch Panel Controller z Sales tripled in 2012 due to increased share of sales to leading smartphone brand customer and new shipments to China handset players z Product line covers cellphone and tablet markets z Expect a strong growth in 2014 supported by numerous new de
Slide 21: Income Statement
Income Statement (US$’000) 4Q-2013 4Q-2012 3Q-2013 Y2013 Y2012 For the Fiscal Period Ended ((Unaudited)) ((Unaudited)) ((Unaudited)) ((Unaudited)) ((Audited)) Revenues from others, net $195,232 $129,973 $192,814 $684,184 $485,281 Revenues from related parties, net * 0 60,666 0 86,555 251,974 Revenue
Slide 22: Balance Sheet
Balance Sheet December 31, 2013 September 30, 2013 December 31, 2012 (US$’000) (Unaudited) (Unaudited) (Audited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $128,108 $133,879 $138,909 Restricted cash equivalents and marketable securities 108,399 115,000
Slide 23: Summary Cash Flow
Summary y Cash Flow 4Q-2013 4Q-2012 2013FY 2012FY (Unaudited) (Unaudited) (Unaudited) (Audited) (US$’000) Net income $14,376 $14,016 $55,924 $50,138 Depreciation and amortization 3,843 3,669 14,309 13,299 Share-based compensation expenses 356 458 1,840 1,936 Deferred income tax expense 3,722 1,913 7
Slide 24: 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 panel industry for over 20 years. With 61 patents related
Slide 25: Board of Directors
Board of Directors Position Name Title Chairman Dr. Biing-Seng g g Wu Founder of the Company p y Director Jordan Wu President and CEO, Himax Technologies, Inc. Independend Director Dr. Dr Yan-Kuin Yan Kuin Su President Kun Shan University President, Independend Director Dr. Hsiung-Ku Chen Consultant
Slide 26: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO John Mattio, SVP 886 2 2370 3999 #22300 +886-2-2370-3999 MZ Group +1-949-585-9838 #252 Main: +1-212-301-7130 jackie_chang@himax.com.tw Mobile: +1-203-297-3911 Penny Lin, IR Director john.mattio@mzgroup.us +886-2-2370-3999 #2232
Slide 27: Drive for better vision
—) Hirmax Drive for better vision
Himax Technologies — Investor Presentation (February 2014) on 6ix