Slide 1: Investor Presentation
: HIMX Investor Presentation May, 2016
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: 30 years of digital imagery expertise
30 years of digital imagery expertise 1990’s 2000’s 2010’s and beyond… Founder B.S. Wu pioneers Chairman Wu establishes Himax to Himax leads LCOS Himax gains market share with design flat panel technologies at meet DDIC demand for large wins with leading technology products development and innovatio
Slide 4: Investment highlights
Himax's TOP THREE driver I/C position and global Investment highlights reach Investment Highlights 1 Leading Display Driver Provider • Worldwide leading display driver player with a wide range of drivers for panels of all sizes and in-house intellectual property • Image technology solutions provider
Slide 5: Capital markets snapshot
Capital markets Summary snapshot Financials Fiscal Year December 31st Last-Traded Price (05/11/16) $10.76 Basic Weighted Ave. Out. 172.3M ADS Diluted Weighted Ave. Out. 172.4M ADS Equivalent ADS Out. 171.9M Market Capitalization $1.9B (05/11/16) Insider Ownership 31.5% * Insider ownership includes e
Slide 6: Shareholder focused. Returns profits
Shareholder focused. Returns profits Dividends Share Buy Back • Distributed a total of $378 million of dividend since • Initiated four share buyback programs IPO (2015 payout in July) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5 mill
Slide 7: Summary financials and guidance
Summary financials Summary Financialsand guidance QUARTER 1Q2016 1Q2015 4Q2015 YoY QoQ Revenues $180.3M $179.0M $178.0M +0.7% +1.3% Gross Margin (%) 26.2% 25.7% 22.9% +0.5% +3.3% GAAP Net Income* $13.1M $12.6M $6.1M** +4.2% +113.5% GAAP Earnings per ADS $0.076 $0.073 $0.036** +4.1% +113.4% Non-GAAP
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou • Fabless semiconductor company with Ninbo, Fuqing Fuzhou world leading visual imaging processing Qingdao technologies • Global market leader in TFT-LCD display Irvine, CA driver and timing controller ICs Design Tainan, Taiwan Headquarters Inv
Slide 9: Corporate structure
Corporate Main structure Operating Companies & Solutions : HIMX Himax Technologies, Inc. HIMAX TECHNOLOGIES, Ltd. HIMAX DISPLAY, a Inc. HIMAX IMAGING, Ltd. • TFT-LCD Driver and AMOLED Driver • LCOS Modules for Head- • CMOS Image sensors • TCON and P-Gamma OP Mounted Display, Head-up Display and Pico
Slide 10: Himax inside consumer electronics
Himax inside consumer electronics DISPLAY DRIVERS In Displays Display Driver TCON On Touch Panels PMIC Controller IC LED Driver P-gamma OP WAFER LEVEL OPTICS CMOS IMAGE SENSORS ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and In Camera Modules licensin
Slide 11: Fabless manufacturing expertise
Fabless Management Skilled manufacturing expertise 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 11
Slide 12: Product Lines & Growth Opportunities
Product Lines & 6 Growth Opportunities 12
Slide 13: DDIC market share
DDIC market share 2015 Q4 Driver Market Share HIMX Driver IC Market Share by Application 4Q15 1Q16 Others Raydium 3% 13% Samsung 28.3% MagnaChip 25% 26.6% 3% 22.7% Focaltech 21.5% 4% Ilitek 4% 16.4% 15.4% 16.1% Novatek 14.0% 18% Sitronix 5% Himax Silicon Works 10% 7% Synaptics 8% Large Panel Smartph
Slide 14: Grow large panel DDIC unit sales and market share
Grow large panel DDIC unit 1 sales and market share Panel Maker Large Panel Total Output Forecast Market Trends Unit: K substrate Continuously aggressive new Gen 8.5 and Gen 10 TFT-LCD LCM Tech 2014 2015 2016 2017 2018 capacity expansion in China with a special focus on 2,985 4,056 5,034 6,744 BOE L
Slide 15: Grow S/M panel DDIC Launch new products
Grow S/M panel DDIC 2 Launch new products Smartphone Display Trends Tablet Display Trends Market Trends 2560 QHD 2160 4K2K Korean, Japanese and Chinese smartphone customers seeking product differentiation with AMOLED panels 2014 and beyond 1920 Brand FHD 1600 Automotive IC market to grow at the high
Slide 16: LCOS Microdisplay
LCOS Microdisplay 3 Design, manufacture, ship Market Trends AR product development for business, industrial, search, gaming, social media, military, toy, automotive and consumer markets Front Lit LCOS Advantages • Compact Form Factor LCOS recognized as the technology of choice for microdisplay in AR
Slide 17: Touch panel controllers
4 Touch Touch Panelpanel controllers Controllers Touch Controller IC Addressable Market Forecast Market Trends (Unit, mn) 2,368 2,500 2,232 Integration of Display & Touch by panel makers and OEMs in Korea, 2,047 China and Taiwan 2,000 1,794 1,556 1,361 HIMX Strategies and Market Position 1,500 1,022
Slide 18: CMOS image sensors and WLO
5 CMOS CMOS Imageimage sensors and WLO Sensors Ultra Low Power Sensor Applications Market Trends CIS development accelerating in functionality and new applications Advanced Wafer-Level Optics (WLO) is the future for AR devices, computational optics and 3D sensing HIMX Strategies and Market Position
Slide 19: Timing controllers
6 Timing controllers TCON Himax eDP TCON in TV Gaining Momentum Market Trends (Unit, K) TCON becoming the key enabler of next generation ultra-high resolution panel development Continuously aggressive new Gen 8.5 and Gen 10 TFT-LCD capacity expansion in China with a special focus on advanced display
Slide 20: 2016 YTD Financial Review
2016 YTD Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history Unit Volume Revenues (unit, M) (US$ M) 1,516 1,500 $1,000 1,400 1,337 $918 1,297 1,309 1,300 $900 $833 $841 1,200 1,152 1,156 1,165 $800 $771 1,069 $745 $737 1,100 $692 $700 $692 1,000 975 $643 $633 900 $600 $540 800 719 $500 700 600 $400 500 460 $300 $300 400 332 300 $2
Slide 22: A better balanced product mix
A better balanced product mix…. • Growing large-sized panel drivers in 2015 and beyond • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • LCOS and WLO: Hit inflection point in Sept 2015 with small
Slide 23: ....and a diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Gross margin is a key business focus
Gross marginis a key business focus Gross margin Revenues & Gross Margin % (US$M) Geographical Revenue Mix & Quarterly GM Better product mix 30. 0% (US$M) lifts blended margin 26.2% $1,4 00.0 24.5% 24.6% 24.5% China Sales ROW Sales 23.1% 23.6% 25. 0% $1,2 00.0 22.0% GM 24.7% 20.5% 21.0% 19.8% GM 22.
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $0.57 $0.40 $0.39 $250 19.1% $0.30 $0.36 0.5 17.3% 17.2% 15.2% 17.8% 0.2 14.2% 15.5% 15.8% $0.21 $0.19 $0.15 10.7% 14.0% $0.08 $0.06 $150 $200 0 0.1 $112.6 $150 $143.9 $132.5 0 -0.5 $133.2 $100 $117.5 $109
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $120 $143.9 $140 $133.2 $133.5 $100.6 $100 $117.5 $90.1 $120 $56.3 $108.9 $103.5 $41.4 $79.5 $98.3 $99.7 $38.1 $76.4 $80 $100 $37.1 $29.9 $32.6 $27.0 $23.3 $80 $60 $57.5 $49.1 $47.5 $60 $40 $91.8 $94.4 $32.0 $30.1 $87.6 $40 $
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement March 31, 2016 Income Statement 27
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet March 31, 2016 Balance Sheet Balance Sheet ** * Short term debt is guaranteed by restricted cash ** Lower 2015FY shareholders equity balance versus 2014 mainly due to the net of cash dividend payout $51.4m and net income $25.2m 28
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement March 31, 2016 of Cash Flow Summary 29
Slide 30: Founders and management & Board team
Founders and management Management & Board 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 ove
Slide 31: Contact us
Contact Contact us John Mattio Jackie Chang, CFO US Investor Main: +1 (203) 885-1099 Direct: +1 (203) 885-1058 Main: +886-2-2370-3999 #22300 Relations jmattio@lamniaintl.com US Office: +1 (949) 585-9838 #252 www.lamniaintl.com jackie_chang@himax.com.tw Company Corporate Penny Lin, IR Manager Counsel