Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (November 2015)
31 slides from Himax Technologies's investor presentation, November 2015
Slide 1: Investor Presentation
: HIMX Investor Presentation November, 2015
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 (11/11/15) $ 6.11 Basic Weighted Ave. Out. ADS 171.6M Diluted Weighted Ave. Out. 171.9M ADS 171.9M Equivalent ADS Out. Market Capitalization $ 1.0B (11/11/15) Insider Ownership * Insider ownership includes execut
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 3Q2015 3Q2014 2Q2015 YoY QoQ Revenues $165.6M $222.3M $169.2M -25.5% -2.1% Gross Margin (%) 21.8% 24.5% 23.8% -2.7% -2.0% GAAP Net Income/Loss* $(2.3)M $11.1M $8.8M -120.9% -126.4% GAAP Earnings (Loss) per ADS $(0.014) $0.065 $0.051 -120.9% -
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. • Driver, TCON and P-Gamma OP • LCOS Modules for Head- • CMOS Image sensors • Touch Controllers Mounted Display, Head-up Display and Pico-projec
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 Others POWER MANAGEMENT IC ASIC and IP TIMING CONTRO
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 Q1 Driver Market Share HIMX Driver IC Market Share by Application Raydium, 3.0% 2Q15 3Q15 Others, 11.4% Lusem, 3.2% 27.3% Magnachip, 3.4% Samsung, 23.1% 26.0% Focaltech, 3.5% 20.5% 18.8% Ilitek, 4.0% 17.0% 16.0% Novatek, 19.0% Sitronix, 4.1% 12.2% 10.8% 9.3% Silicon Works, 4.3
Slide 14: Grow large panel DDIC unit sales and market share
Grow large panel DDIC unit 1 sales and market share Panel Maker Capacity Expansion Plan Market Trends 4Q14 1Q15 2Q15 3Q15 4Q15 1H16 2H16 2017 2018 Makers Continuous new TFT-LCD capacity expansion in China in 2015 G8.5 and beyond remains aggressive with a special focus on 90K 110K Samsung 60K(+5K) 65
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 DDIC in smartphone and tablet applications remain the backbone of the company 2014 and beyond Brand 1920 FHD Korean and Chinese smartphone customer strategically 1600 1536 WQXGA
Slide 16: LCOS Microdisplay
LCOS Microdisplay 3 Design, manufacture, ship Market Trends Head mounted technology is about to change the world. AR product development for business, Front Lit LCOS Advantages industrial, gaming and mass market • Form Factor /Compact Design • Brightness Limited companies provide the combination of
Slide 17: Touch panel controllers
4 Touch Touch Panelpanel controllers Controllers Market Trends (Unit, mn) Touch Controller IC Addressable Market Forecast (Units) 2,368 2,500 2,232 Integration of Display & Touch by panel makers and OEMs 2,047 2,000 1,794 1,556 HIMX Strategies and Market Position 1,500 1,361 1,022 • Sales tripled in
Slide 18: CMOS image sensors
5 CMOS CMOS Imageimage sensors Sensors Market Trends Resolution Trend by CMOS Image Sensor CIS development accelerating in resolution and functionality 2013 – 2019 8% CAGR (Unit: Mps) Advanced Wafer-Level Optics (WLO) is the future for array 5,798 6,007 camera(computational optics) and special-purpo
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 HIMX Strategies and Market Position • The beginning of a multi-year growth with expanded adoption from MNT & NB to 4K TV •
Slide 20: 2015 YTD Financial Review
2015 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 1,300 $900 $833 $841 1,200 1,152 1,156 1,165 $800 $771 1,069 $745 $737 1,100 $692 975 967 $700 1,000 $643 $633 900 $600 $540 800 $514 719 $500 700 600 $400 500 460 $300 $300 400 300 $200 221
Slide 22: A better balanced product mix
A better balanced product mix • Growing large-sized panel drivers in 2015 and beyond • Small and medium-sized panel driver business slowing down due to weak market sentiment • Further diversify products and expand customer portfolio in various segments • Increasing non-driver sales to diversify sale
Slide 23: ….and a diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Sales, gross margins and geographical mixes
Gross margin Sales, gross margins and geographical mixes Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM% (US$M) (US$M) Better product mix 30. 0% China Non-China $1,4 00.0 helps lift blended margin 54.5% 24.5% 24.6% 24.5% 50.9% 52.5% 23.8% 50.8% 23.1% 25. 0% 22.0% $1,2 00.0 20.5% 2
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $0.57 $0.39 $250 17.2% 19.5% $0.40 15.2% $0.36 0.5 17.3%14.2% 0.2 $0.30 15.5% 15.8% $0.21 $0.19 10.7% 14.0% $0.11 $0.06 $150 $200 0 0.1 $112.6 $150 $143.9 0 -0.5 $133.2 $100 $117.5 $109.0 $103.5 $98.1 $98.
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $120 $56.3 $140 $41.4 $100.6 $100 $120 $37.1 $90.1 $29.9 $79.5 $32.6 $28.5 $76.4 $100 $27.0 $23.3 $80 $80 $60 $57.5 $49.1 $60 $91.8 $40 $35.0 $40 $87.6 $80.4 $30.1 $76.4 $79.0 $71.3 $70.9 $71.8 $20 $20 $0 $0 2008 2009 2010 20
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement September Income30,Statement 2015 For the Fiscal Period Ended 3Q-2015 3Q-2014 2Q-2015 FY2014 FY2013 (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues from others, net $165,582 $222,317 $169,185 $840,542 $684,184 Revenues from related parties, net
Slide 28: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement September Summary30, 2015 of Cash Flow 3Q-2015 2Q-2015 FY2014 FY2013 (Unaudited) (Unaudited) (Audited) (Audited) Net income ($2,930) $7,616 $63,903 $55,924 Depreciation and amortization 3,425 3,366 14,592 14,309 Share-based compensation expenses 472 534 1,92
Slide 29: Reported financials – Balance Sheet
Reported financials – Balance Sheet September Balance30,Sheet 2015 September 30, 2015 June 30, 2015 September 30, 2014 Balance Sheet (Unaudited) (Unaudited) (Unaudited) ASSETS Current Assets: Cash, cash equivalents and marketable securities available-for-sale $126,012 $164,518 $147,671 Restricted ca
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
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