Slide 1: Investor Presentation
: HIMX Investor Presentation June, 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 gains market share with Himax leads LCOS development flat panel technologies at meet DDIC demand for large design wins with leading and innovation of new display Chi
Slide 4: Himax's Highlights
Investment Investment Himax's Highlights highlights TOP THREE driver I/C position and global reach 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: Summary Financials and Capital markets snapshot
Summary Financials Capital markets snapshot Fiscal Year December 31st Last-Traded Price (09/01/16) $10.23 Basic Weighted Ave. Out. 172.3M ADS Diluted Weighted Ave. Out. 172.4M ADS Equivalent ADS Out. 171.9M Market Capitalization $1.8B (09/01/16) Insider Ownership 31.5% * Insider ownership includes e
Slide 6: $546 Returned to shareholders including dividends and share buyback
Shareholder focused. Returns profits Dividends Share Buy Back • Distributed a total of $400 million of dividend since • Initiated four share buyback programs IPO (2016 payout in August) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5 mi
Slide 7: Summary financials and guidance
Summary Financials Summary financials and guidance QUARTER 2Q2016 2Q2015 1Q2016 YoY QoQ Revenues $201.1M $169.2M $180.3M +18.8% +11.5% Gross Margin (%) 26.1% 23.8% 26.2% +2.3% -0.1% GAAP Net Income $19.8M $8.8M $13.1M +124.0% +51.2% GAAP Earnings per ADS $0.115 $0.051 $0.076 +123.8% +51.2% Non- Non-
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou • Fabless semiconductor company with Ninbo, Ninbo, Fuqing Fuzhou Qingdao world leading visual imaging processing technologies • Global market leader in TFT-LCD display Irvine, CA driver and timing controller ICs Tainan, Taiwan Design Headquart
Slide 9: Corporate structure
Corporate Main structure Operating Companies & Solutions : HIMX Himax Technologies, Inc. HIMAX TECHNOLOGIES, Ltd. a HIMAX DISPLAY, 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 On Touch Panels Display Driver TCON PMIC Controller IC LED Driver P-gamma OP WAFER LEVEL OPTICS CMOS IMAGE SENSORS Others ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP In Camera Modules Servicing and l
Slide 11: Fabless Management of Complex Supply Chains
Skilled Fabless Management of Complex Supply Chains manufacturing expertise 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 2016 Q1 Driver Market Share HIMX Driver IC Market Share by Application (4Q15 Market Share%) 4Q15 1Q16 Raydium 4% Others 2Q16 11% 32.3% MagnaChip Samsung 24% 28.3% 4% 26.6% (25%) Focaltech 22.7% 4% 21.5% 19.8% 18.7% 18.3% Ilitek 4% 16.1% 15.4% 16.4% Novatek 14.0% 17% Sitronix (18%)
Slide 14: Large panel DDIC: Market Trends and HIMX Strategies
1 Grow large panel DDIC unit sales and market share Market Trends Panel Maker Large Panel Total Output Forecast Unit: K substrate Continuously aggressive new Gen 8.5 and Gen 10 TFT-LCD capacity expansion in China with a special focus on LCM Tech 2014 2015 2016 2017 2018 advanced display technologies
Slide 15: Small/medium panel DDIC: Market Trends and HIMX Strategies
2 Grow S/M panel DDIC Launch new products Smartphone Display Trends Tablet Display Trends Market Trends 2560 QHD 2160 4K2K Korean, Japanese and Chinese smartphone customers 2014 and beyond seeking product differentiation with AMOLED panels 1920 Brand FHD 1600 Automotive IC market to grow at the high
Slide 16: LCOS Microdisplay
3 LCOS Microdisplay Design, manufacture, ship Market Trends AR product development for business, industrial, search, gaming, mobile, social media, military, toy, automotive, wearable, toy and consumer markets Front Lit LCOS Advantages • Compact Form Factor LCOS recognized as the technology of choice
Slide 17: Touch panel controllers
4 Touch Touch Panelpanel Controllers controllers Market Trends (Unit, mn) Touch Controller IC Addressable Market Forecast 2,368 Integration of Display & Touch by panel makers and OEMs in Korea, 2,232 2,500 China and Taiwan 2,047 1,794 In-cell display with TDDI rapidly becoming the preferred choice f
Slide 18: CMOS image sensors and WLO
5 CMOS CMOS Imageimage sensors and WLO Sensors Market Trends Ultra Low Power Sensor Applications 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 Market Trends Timing Controller Growth by Application 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 technol
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 $540 800 719 691 $500 700 600 $400 $381 500 460 $300 $300 400 3
Slide 22: A better balanced product mix
A better balanced product mix…. • Growing large-sized panel drivers in 2015 and beyond • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • LCOS and WLO: Phenomenal growth in 1H 2016 will continue to
Slide 23: Diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Gross margin is a key business focus
Gross marginis a key business focus Gross margin Revenues & Gross Margin % Geographical Revenue (US$M) 30. 0% Mix & Quarterly GM $1,4 00.0 Better product mix lifts blended margin 26.1% (US$M) 24.5% 24.6% 24.5% 23.1% 23.6% 25. 0% 22.0% $1,2 00.0 20.5% 21.0% 19.8% China Sales ROW Sales $918.2 $1,0 00.
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $0.57 $0.40 $0.39 $250 17.3% 17.2% 15.2% 19.1% $0.30 $0.36 0.5 15.8% 16.4% 0.2 $0.21 $0.19 10.7% 14.2% 15.5% 14.0% $0.15 $0.19 $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 $132.5 $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 $62.6 $49.1 $47.5 $44.8 $60 $17.4 $40 $91.8 $94.4 $30.1
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement June 30, 2016Statement Income US$’000 2Q-2016 2Q-2015 1Q-2016 Y2015 Y2014 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues $201,074 $169,185 $180,319 $691,789 $840,542 Cost of revenues 148,596 128,885 133,144 528,651
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet June 30, 2016Sheet Balance June 30, 2016 March 31, 2016 June 30, 2015 US$’000 Assets Balance Sheet (Unaudited) (Unaudited) (Unaudited) Current Assets: Cash and cash equivalents $164,423 $150,521 $161,256 Investments in marketable securities available-for-sale 14,9
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement June 30, 2016 of Cash Flow Summary 2Q-2016 1Q-2016 2015FY 2014FY (Unaudited) (Unaudited) (Audited) (Audited) US$’000 Net income $19,273 $12,582 $21,462 $63,903 Depreciation and amortization 3,465 3,450 14,164 14,592 Share-based compensation expenses 277 277
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 over
Slide 31: Contact us
Contact Contact us Jackie Chang, CFO John Mattio US Investor Main: +1 (203) 885-1099 Main: +886-2-2370-3999 #22300 Relations Direct: +1 (203) 885-1058 US Office: +1 (949) 585-9838 #252 jmattio@lamniaintl.com jackie_chang@himax.com.tw www.lamniaintl.com Company Penny Lin, IR Manager Main: +886-2-2370