Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation May, 2015 Himax Technologies, Inc. 奇景光電股份有限公司
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: Himax is Changing the Way People See the World and Beyond
Himax is Changing the Way People See the World and Beyond … 2010s 2000s Display Drivers Timing Controllers ASIC Service and IP Licensing CMOS Image Sensors Display Drivers Touch Panel Controllers Timing Controllers LED Drivers / PMICs ASIC Service and IP Licensing LCOS Microdisplays Solutions CMOS I
Slide 4: Investment Highlights
Investment Highlights 1 Leading Display Driver Provider Worldwide leading display driver player with a wide range of drivers portfolio for panels of all sizes and in-house intellectual property Image technology solutions provider 2 Diversifying Revenues and Customers Top tier customers globall
Slide 5: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (05/13/15) $ 6.15 Basic Weighted Ave. Out. ADS (2015) 171.6M Diluted Weighted Ave. Out. ADS (2015) 172.2M Equivalent ADS Out. (1Q2015) 171.2M Market Capitalization (05/13/15) ~$ 1.05B Insider Ownership* ~31.6% 1Q2015 1Q2014 4Q2014 YoY Q
Slide 6: Company Overview
Company Overview Overview Fabless semiconductor provider with world leading visual imaging Headquarter: Tainan, Taiwan processing technologies Global market leader in TFT-LCD display driver and timing controller ICs Strong growth momentum in non-driver products 200+ customers across Taiwan,
Slide 7: Himax Operating Companies
Himax Operating Companies Himax Technologies Ltd Himax Media Solutions, Inc. Driver, Tcon and P-Gamma OP ASIC Service and IP Licensing Touch Controllers Monitor and Projector Scalers On-cell Touch Infinity Color Technology Pure in-cell Touch with Display Driver 2D to 3D Conversion
Slide 8: Himax's Products – Strength in Mobile Devices
Himax’s Products – Strength in Mobile Devices CMOS Image Sensors Display Drivers Wafer Level Optics Timing Controllers Display Panel (Tcon) • Display Driver • Tcon • PMIC Camera Module • LED Driver • CMOS Image Sensor • P-gomma OP • Wafer Level Optics ASIC service & IP Licensing Touch Panel NAND & D
Slide 9: Himax's Global Footprint
Himax’s Global Footprint Taiwan - HQ Japan Tainan Tokyo Headquarters Sales Design Technical support Manufacturing Operations Sales/Marketing Korea Technical support Cheonan Sales Taipei Technical support Design Suwon Sales/Marketing Sales Technical support Technical support Investor Relations Hsinch
Slide 10: Skilled Management of Complex Supply Chains
Skilled Management 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 Himax Proprietary & Confidential 10
Slide 11: Shipment and Revenue Track Record
Shipment and Revenue Track Record Consistent shipment growth Strong revenue rebound Volume Revenues (unit, M) (US$ M) 1,516 1,500 $1,000 1,337 $918 1,400 1,297 1,300 $900 $833 $841 1,200 1,152 1,156 1,165 $771 1,069 $800 $745 $737 1,100 $692 1,000 975 $700 $643 $633 900 $600 $540 800 719 700 $500 60
Slide 12: Improved Margin and Profitability
Improved Margin and Profitability Revenues Gross Margin OPEX and % of Total Sales (US$mm) (%) (US$mm / %) $250 17.3% 17.2% 15.2% 15.8% 17.0% 0.2 $1,000 14.2% 15.5% 14.0% 10.7% $918.2 25.7% $200 24.5% 24.9% 0.1 $900 $832.8 $840.5 22.0% $143.9 24.5% $150 $133.2 0 21.0% $117.5 $800 $770.7 23.1% $98.1 $
Slide 13: Quarterly Financial Performance
Quarterly Financial Performance (US$ M) Revenues $220 $222.3 $227.2 Gross Margin $207.0 Inflection $200 $192.8 $195.2 $194.6 $196.4 Point $189.5$190.4 $190.6 24.6% 25.1% 24.2% $179.0 24.7% $180 $175.7 22.1% 23.1% 23.3% $162.1 $169.2$166.7 25.3% 24.7% 25.7% $160 Non-Driver 18.5% 22.9% 23.3% 24.6% 24.
Slide 14: More Balanced Product Mix
More Balanced Product Mix Growing large-sized panel drivers in 2015 and beyond Small and medium-sized panel driver business slowing down due to weak market sentimnet Further diversify products and expand customer portfolio in various segments Increasing non-driver sales to diversify sales ba
Slide 15: Customer Mix
Customer Mix Largely reduced dependence on one single customer: 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 Himax’s related party Innolux sales bottome
Slide 16: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback Cash Dividend Share Buyback Distributed a total of $378 million of dividend since IPO Initiated four share buyback programs totaling $158 (2015 payout will be in July) million since 2007 Committed to paying annual dividends referenced Repurchased a total of 46
Slide 17: Leading Display Driver Provider
Leading Display Driver Provider 2014 Q4 Driver Market Share Market Share of HIMX Small/ Medium-sized Panel Driver by Application Others 10% Raydium 3% Novatek 21% 27.3% Magnachip 3% 23.1% 22.5% Sitronix 4% 21.7% 21.5% Orise 4% 17.0% Silicon Works 5% Lusem 3% Samsung 20% Ilitek 5% Synaptics 11% Smart
Slide 18: Growth Opportunity #1 – TV Driver IC
Growth Opportunity #1 – TV Driver IC (Unit, mn) 4K TV Penetration Actual & Forecast Major beneficiary from growing China market as 40% 120 a market share leader 35% 100 New TFT-LCD capacity plan in China in 2015 and 30% 33.7% 35.3% beyond remains aggressive with a special focus 25% 29.9% 31.9% 8
Slide 19: Growth Opportunity #2 – Mobile Driver IC
Growth Opportunity #2 – Mobile Driver IC Leading position to be solidified due to higher Display Trends for Smartphone Display Trends for Tablet resolution migration trend 2560 QHD 2160 4K2K Panel makers are direct customer but need 2014 and beyond Brand to work closely with end-customers: 1920
Slide 20: Growth Opportunity #3 – CMOS Image Sensors
Growth Opportunity #3 – CMOS Image Sensors Premium quality CMOS image sensor products to capture Resolution Trend by CMOS Image Sensor2 the US $12.3B1 market (2017): (Unit: Mps) 12-16 CAGR 4,273 14.5% High sensitivity, low noise, cost effective, and low power consumption 3,937 design in highly i
Slide 21: Growth Opportunity #4 – LCOS Micro Display
Growth Opportunity #4 – LCOS Micro Display Proprietary LCOS microdisplay solutions: Primary product focus is Head-Mounted Display Market leader of the LCOS industry (HMD), HUD and industrial applications Volume track record - over 2 mn units New design wins, and on-going pilot shipments si
Slide 22: FL-LCOS Advantages
FL-LCOS Advantages Form Factor/Compact Design Thickness<3.2mm Total size smaller than traditional LCOS and μOLED 1/3 the size of traditional LCOS panel Best for HMD application Brightness Typical luminance: >20000 nits 25 times brighter than μOLED Power Efficiency 3 times better
Slide 23: What are Wearable Electronics?
What are Wearable Electronics? Real-time Experience Recorder With Display Without Display Source: Google; Sony; Magic Leap, Microsoft Source: Nike; uPlay; Sony; Samsung; Qualcom; Intel; Geak, MC10; O’Neil 23
Slide 24: We're all going "Iron Men"?
We’re all going “Iron Men”? Display Augmented Reality Gesture Recognition Source: Movie “ Iron Man” 24
Slide 25: Himax Solutions for Wearable Device
Himax Solutions for Wearable Device Compact and Slim Imaging Solution Augmented Reality and Virtual Reality Systems Detector Camera Array Camera Eye tracking & IR sensing Depth & 3D information Pico-projector Pico-projector LCOS microdisplay Micro light guide 25
Slide 26: Growth Opportunity #5 – Touch Panel Controller
Growth Opportunity #5 – Touch Panel Controller Sales tripled in 2012 due to increased share of sales to leading smartphone brand customer and new shipments to China handset players. In 2014, sales were close to triple again year over year. With ~25% smartphone DDIC market share and solid core co
Slide 27: Income Statement
Income Statement (US$’000) *For September 30th, 2013 and forward, Himax will no longer report related party sales from Innolux 27
Slide 28: Balance Sheet
Balance Sheet (US#039;000) March 31,2015 = December 31, 2014 March 31, 2014 (Unaudited) (Audited) (Unaudited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $178,769 $187,843 $139,672 Restricted cash equivalents and marketable securities 130,180 130,179 108,3
Slide 29: Summary of Cash Flow
Summary of Cash Flow (US$’000) 29
Slide 30: Management
Management 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 to
Slide 31: Board of Directors
Board of Directors Position Name Title Chairman Dr. Biing-Seng Wu Founder of the Company Director Jordan Wu President and CEO, Himax Technologies, Inc. Independend Director Dr. Yan-Kuin Su President, Kun Shan University Independend Director Dr. Hsiung-Ku Chen Consultant, Color Imaging Industry Promo
Slide 32: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO Adam Holdsworth, Managing Director +886-2-2370-3999 #22300 PCG Advisory Group, LLC +1-949-585-9838 #252 Main: +1-646-862-4607 jackie_chang@himax.com.tw adamh@pcgadvisory.com Penny Lin, IR Manager Corporate Counsel +886-2-2370-3
Slide 33: Drive for better vision
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