Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation November, 2012 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 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 d
Slide 3: Investment Highlights
Investment Highlights g g z A leading “fabless” manufacturer in TFT-LCD panel display drivers Pioneer iin ttechnology Pi h l with ith a complete l t portfolio tf li off di display l d drivers i ffor panels l iin all kind of sizes Business model with sophisticated supply chain management expertis
Slide 4: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (11/14/12) $2.02 Basic Weighted Ave. Out. ADS (2011) 176.9M Diluted Weighted Ave. Out. ADS (2011) 176.9M Equivalent ADS Out. (3Q2012) 169.9M Market Capitalization (11/14/12) $343.2M Insider Ownership* ~46.8% 3Q2012 3Q2011 2Q2012 YoY QoQ
Slide 5: Company Overview
Company p y Overview z Fabless semiconductor provider with world leading Headquarter: Tainan, Taiwan visual imaging processing technologies z Global market leader in TFT-LCD display driver and timing controller ICs z Pioneer in mobile projector microdisplays z Growth momentum in touch panel controll
Slide 6: Himax Operating Companies
Himax Operating p g Companies p Hi Himax T Technologies h l i Ltd Himax Media Solutions Solutions, Inc. z Display Drivers and Tcon z ASIC Service and IP Licensing z Touch Controllers z Monitor and Projector Scalers z Wafer Level Optics and modules z Infinity Color Technology for CIS z 2D to 3D Conve
Slide 7: Himax's Products – Strength in Mobile Devices
Himax’s Products – Strength g in Mobile Devices CMOS Image Sensor with FSI/BSI Technologies Display Driver IC (Handset/CE /OA/TV) z Main supplier for higher-end (non-VGA) segments z World leader in display driver IC, covering all panel makers for in NB all applications z BrightSenseTM boosts low lig
Slide 8: Skilled Management of Complex Supply Chains
Skilled Management g of Complex p Supply pp y Chains Wafer Fabrication L Large Panel P l Display Di l Driver Di Supply S l Chain Ch i Gold Bumping Processed Tape Chip Probe Testing Assembly and Testing 8
Slide 9: Himax's Global Footprint
Himax’s Global Footprint p Taiwan - Headquarters Tainan T i Headquarters Design Manufacturing Operations S l /M k ti Sales/Marketing Technical support Taipei Design Sales/Marketing Technical support Hsinchu Design Sales/Marketing Technical support U.S. China Japan Korea Irvine Beijing Ninbo Shenzhen
Slide 10: Shipment and Revenue Track Record
Shipment p and Revenue Track Record Consistent shipment growth Volume Revenues (unit, M) (US$ M) * * * * * 9M2012 and 9M2011 actual results **2012F also includes Q4 guidance that revenues expected to be around flat or slightly down compared to Q312 10
Slide 11: Gross Margin and Net Income (2007~9M2012)
Gross Margin g and Net Income ((2007~ 9M2012)) z With better product mix, gross margin has improved to 22.1% in 4Q11, 22.9% in 1Q12, 23.1% in 2Q12 and 23.3% in 3Q12, the fourth consecutive quarter of GM improvement z G Gross margini off 3Q12 iis th the highest hi h t llevell since i 4Q08 z Improveme
Slide 12: Quarterly Financial Performance
Quarterly y Financial Performance z Gross margin improvement due to better product mix z More controlled OPEX z Continuous R&D commitment z Positive profitability outlook Revenues Gross Margin (US$ M) (%) $189.5 $190.4 $169.2$166.7 $160.6 $162.1 Non--Driver Non $141.1 S/M Large (US$ M) Operating and
Slide 13: Product Mix
Product Mix More balanced product mix: z Fast growing small and medium-sized panel driver z Increasing non-driver products Revenues $918 $833 $692 $643 $633 $190 (US$ M) 100% 2.60% 5.1% 6.7% 8.2% 12.7% 14.0% 15.50% 16 7% 16.7% 80% 22.0% 34.8% 44.6% 45.8% 60% 40% 81.9% 78.2% 71.3% 57.0% 20% 42.7% 40.
Slide 14: Revenue Breakdown
Revenue Breakdown Largely reduced dependence on one single customer: z Chimei Innolux Corporation is the world’s third largest panel manufacturer that owns 14.9% of HIMX z Revenue in 3Q12 down to 34% from as high as 66.5% in 1Q08, reflecting strength in our non non-large large panel driver businesse
Slide 15: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback y Cash Dividend Per ADS Share Buyback Programs z Cumulatively distributed ~$239 million of cash z Initiated four (4) share buyback programs totaling dividend since IPO ~$158 million since 2007 and repurchased a total of 46.2 million ADSs aggregately through September
Slide 16: Historical Share Price Trend
Historical Share Price Trend (US$) (US$) (%) 16
Slide 17: Worldwide Flat Panel Display Forecast
Worldwide Flat Panel Display p y Forecast z Smartphone and tablet are expected to grow at stronger annual growth rates z Growth in China outpaces other regions (Source: DisplaySearch) 17
Slide 18: Himax Display Driver Market Share
Himax Display p y Driver Market Share z One of the leading players in display driver IC designs z Superior growth in small/medium-sized display driver market driving overall growth momentum Large-sized Panel Driver Small/Medium-sized Panel Driver Growing Market Share of HIMX Small/Medium-sized Panel
Slide 19: Growth Opportunity #1 – Smartphone Display Drivers
Growth Opportunity pp y #1 – Smartphone p Display p y Drivers z Technology leader in smartphone di driver IC ICs including i l di hVGA hVGA, nHD, HD WVGA, qHD and HD720 z Stronggggrow momentum from international and Chinese smartphone brands z Anticipate growth opportunity to continue in 2012 and be
Slide 20: Display Resolution Trends for Smartphone
Display p y Resolution Trends for Smartphone p z For the entry smart phone Mainstream is HVGA now; WVGA expected to be mid-to-entry in 2012 to 2013 Low-cost oriented z For high-end smart phone Himax is ready for high-end high end smart phones with HD720/ WXGA with LTPS/ GIP Eg., 4.3” HD720 Æ
Slide 21: Recent Smartphone Display Market Trend
Recent Smartphone p Display p y Market Trend Lenovo A60 ZTE KIS LG Optimus L3 HVGA Samsung Galaxy Mini2 UMEOX X2 Alcatel OT995 Coolpad Coolpad 9910 Coolpad Coolpad 5860 Lenovo A750 ZTE Blade II WVGA G ZTE Skate Acqua HTC One V Samsung Galaxy S WIFI Samsung Galaxy Beam N ki Lumia Nokia L i 610 ZTE Er
Slide 22: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity pp y #2 – CMOS Image g Sensors z Premium quality CMOS image sensor products to capture the US$10B market Traditional camera module (2015): Wafer level camera module High sensitivity and low noise design in highly integrated products Sales grew 10 times YOY vs. 20+% market grow
Slide 23: Growth Opportunity #3 – Touch Panel Controller
Growth Opportunity pp y #3 – Touch Panel Controller z Successful mass production and shipments to a world leading smart phone brand in 2011 z Continuous new projects awarded by that same customer in 2012 z With high product quality and proven commercial production track record with Tier 1 clients, w
Slide 24: Growth Opportunity #4 – LCOS Micro Display
Growth Opportunity pp y #4 – LCOS Micro Display p y Microdisplay Applications z Proprietary LCOS pico-projector HMD solutions: Story beam Data projector Successfully adopted in camera and handset applications Cumulative shipment over 1 1.5 5M Ph Phone embedded b dd d projector j t St d l Standal
Slide 25: Income Statement
Income Statement (US$’000) 3Q-2012 3Q-2011 2Q-2012 Y2011 For the Fiscal Period Ended (Unaudited)) (Unaudited) (Unaudited)) (Audited) Revenues from others, net $125,671 $98,404 $126,164 $374,788 Revenues from related parties, net 64,742 63,717 63,346 258,233 Revenues 190,413 162,121 189,510 633,021 C
Slide 26: Balance Sheet
Balance Sheet September 30, 2012 September 30, 2011 June 30, 2012 December 31, 2011 (Unaudited) (Unaudited) (Unaudited) (Audited) (US$’000) (US$ 000) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $88,993 $90,818 $103,159 $106,329 Restricted cash equivalen
Slide 27: Summary Cash Flow
Summary y Cash Flow 3Q-2012 3Q-2011 2Q-2012 2011FY (Unaudited) (Unaudited) (Unaudited) (Audited) (US$’000) Net income ((loss)) $10,164 , ($91)) ($ $14,917 , $9,507 , Depreciation and amortization 3,152 3,162 3,165 12,795 Share-based compensation expenses 451 1,600 510 4,190 Deferred income tax ex
Slide 28: Management
Management g Dr. Biing-Seng Wu, Chairman of the Board - Previously Dr. Wu served as President, CEO and a director of Himax Taiwan. Dr. Wu has been active in the TFT-LCD panel i d t for industry f over 20 years and d is i a memberb off the th boards b d off the th Taiwan T i TFT LCD TFT-LCD Associati
Slide 29: Board of Directors
Board of Directors Position Name Title Chairman Dr. Biing-Seng Wu Founder of the Company Independend Director Dr. Yan-Kuin Su President, Kun Shan University Independend Director Dr. Hsiung-Ku Chen Consultant, Color Imaging Promotion Office Independend Director Yuan-Chuan Horng Assistant Vice Preside
Slide 30: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO John Mattio, SVP +886-2-2370-3999 #22300 MZ Group jackie chang@himax com tw jackie_chang@himax.com.tw Main: +1-212-301-7130 Penny Lin, IR Manager Mobile: +1-203-297-3911 +886-2-2370-3999 #22320 john.mattio@mzgroup.us penny_lin@
Slide 31: Drive for better vision
—) Himax Drive for better vision