Slide 1: Investor Presentation
: HIMX Investor Presentation August, 2017
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 and WLO flat panel technologies at meet DDIC demand for large design wins with leading development and innovation of new Chi
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 (08/02/17) $8.47 Basic Weighted Ave. Out. ADS 172.4M Diluted Weighted Ave. Out. ADS 172.5M Equivalent ADS Out. 172.0M Market Capitalization (08/02/17) $1.46B Insider Ownership* 23.26% * Insider ownership includes
Slide 6: Shareholder focused. Returning profits
Shareholder focused. Returning profits Dividends Share Buy Back • Distributed a total of $400 million of dividend • Initiated four share buyback programs since IPO (2016 payout in August) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5
Slide 7: Summary financials and guidance
Summary financials Summary Financialsand guidance QUARTER 2Q2017 2Q2016 1Q2017 YoY QoQ Revenues $151.7M $201.1M $155.2M -24.5% -2.2% Gross Margin (%) 23.8% 26.1% 23.1% -2.3% +0.7% GAAP Net Income (Loss) $(0.6)M $19.8M $1.4M -103.2% -146.1% GAAP Earnings (Loss) per ADS $(0.004) $0.115 $0.008 -103.2%
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou Fuzhou Ninbo, Foshan • Fabless semiconductor company with Wuhan, Shenzhen, Hefei, Tokyo world leading visual imaging processing Xiamen, Chongqing, Xian, Chengdu Sales technologies Sales Design Technical Support Technical Support • Global marke
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 • Touch Controll
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 Others ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and In Camera Modules l
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 2017 Q1 Driver Market Share HIMX TFT Driver IC Market Share by (4Q16 Market Share %) Application 1Q16 2Q16 FocalTech Others 3Q16 3% 13% 4Q16 MediaTek 35.6% 36.0% 3% 1Q17 32.3% Samsung Raydium 2Q17 29.6% 29.1% 30% 4% 26.6% (25%) 23.3% 22.5% 22.0% 22.0% 22.3% Sitronix 19.8% 19.7%20.0
Slide 14: Grow large panel DDIC unit sales and market share
Grow large panel DDIC unit 1 Sales and market share Market Trends • Continuously aggressive new Gen 8 above TFT-LCD capacity expansion in China with a special focus on advanced display technologies • Leading Chinese panel maker’s shipment continue to rank world No. 1 in May 2017 and dominate in the
Slide 15: Grow S/M panel DDIC, launch new products
Grow S/M panel DDIC 2 Launch new products Small Medium Display Area by Technology Market Trends • Smartphone customers seeking product differentiation with longer aspect ratio full screen display (FHD+ and HD+) • Leading China panel makers has ramped up their investments in AMOLED manufacturing and
Slide 16: WLO and CMOS image sensors
3 WLO CMOS andSensors Image CMOS image sensors Market Trends NIR Sensor + WLO & DOE Applications • Advanced wafer-level optics (WLO); one of the key technologies enabling 3D sensing • 3D sensing is among the most significant new features for next generation smartphone and tablet • 3D sensing; a game
Slide 17: LCOS Microdisplays
4 LCOS Microdisplays Market Trends • Heavy weight companies allocating major R&D resources and budget in their push for AR goggle devices Front Lit LCOS Advantages • Compact Form Factor • LCOS recognized as one of the technology choices for microdisplay in • Brightness AR devices • Power Efficiency
Slide 18: Touch panel controllers
5 Touch Touch Panelpanel controllers Controllers Market Trends • Integration of Display & Touch by panel makers and OEMs in Korea, China and Taiwan • Increasing TDDI penetration in smartphones, expecting to reach 40% by 2020 HIMX Strategies and Market Position • TDDI pure in-cell solution Benefit
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 10.5 TFT-LCD capacity expansion in China with a special focus on advanced display t
Slide 20: 2017 YTD Financial Review
2017 YTD Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history One of the Leading Semiconductor Companies Volume Revenues (unit, M) (US$ M) 1,516 1,500 1,464 $1,000 1,337 $918 1,400 1,297 1,309 $900 $833 $841 1,300 1,165 $803 1,200 1,152 1,156 $800 $771 $745 $737 1,100 1,069 $692 $692 975 $700 $643 $633 1,000 900 $600 $540 800 719 $
Slide 22: A better balanced product mix
A better balanced product mix…. • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • Advanced Wafer Level Optics, CIS and LCOS microdisplays Positive long-term growth prospect GM & OPM significant
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 % Geographical Revenue Mix & Quarterly GM (US$M) (US$M) Better product mix lifts blended margin 30. 0% China Sales ROW Sales $1,4 00.0 GM 25.6% 24.5% 24.6% 24.5% 24.2% GM 26.1% GM 19.1% 23.1% 23.6% 23.5% 25. 0% GM 25.7% GM 26.2
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) 23.3% $200 (US$M / US$) $250 19.1% $0.57 17.3% 17.2% 16.8% $0.39 15.5% 15.8% $0.40 14.2% 14.0% 15.2% $0.30 $0.36 $0.30 0.5 $0.21 $0.19 $0.15 10.7% $200 $0.06 $0.004 $150 0 $143.9 $112.6 $150 $133.2 $132.5 $135.1 -0.5 $117.5
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $143.9 $120 $135.1 $140 $133.2 $132.5 $100.6 $117.5 $100 $120 $56.3 $108.9 $39.3 $90.1 $103.5 $41.4 $98.3 $99.7 $38.1 $79.5 $100 $80 $76.4 $73.8 $37.1 $29.9 $32.6 $27.0 $23.3 $80 $71.4 $57.5 $60 $49.1 $47.5 $60 $18.1 $91.8 $9
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement June 30, 2017Statement Income US$’000 2Q-2017 2Q-2016 1Q-2017 Y2016 Y2015 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues $151,730 $201,074 $155,210 $802,917 $691,789 Cost of revenues 115,556 148,596 119,309 608,605
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet June 30, 2017Sheet Balance US$’000 Balance Sheet June 30, 2017 (Unaudited) March 31, 2017 (Unaudited) June 30, 2016 (Unaudited) Assets Current Assets: Cash and cash equivalents $177,206 $190,345 $164,423 Investments in marketable securities available-for-sale 8,66
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement June 30, 2017 of Cash Flow Summary 2Q-2017 1Q-2017 2016FY 2015FY US$’000 (Unaudited) (Unaudited) (Audited) (Audited) Net income (loss) ($983) $809 $48,747 $21,462 Depreciation and amortization 3,471 3,439 13,756 14,164 Share-based compensation expenses 255 2
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 Greg Falesnik Main: +886-2-2370-3999 #22300 US Investor Main: +1 (212) 301-7130 US Office: +1 (949) 585-9838 #252 Relations greg.falesnik@mzgroup.us jackie_chang@himax.com.tw http://www.mzgroup.us Company Ophelia Lin, IR Project Deputy Director Main: +886-2-2370-