Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (February 2017)
31 slides from Himax Technologies's investor presentation, February 2017
Slide 1: Investor Presentation
: HIMX Investor Presentation February, 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 (02/15/17) $6.37 Basic Weighted Ave. Out. ADS 172.3M Diluted Weighted Ave. Out. ADS 172.4M Equivalent ADS Out. 172.0M Market Capitalization (02/15/17) $1.1B Insider Ownership* 31.5% * Insider ownership includes e
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 4Q2016 4Q2015 3Q2016 YoY QoQ Revenues $203.4M $178.0M $218.1M +14.3% -6.7% Gross Margin (%) 19.1%*** 22.9% 25.6% -3.8% -6.5% GAAP Net Income $4.4M $6.1M $13.6M -27.6% -67.4% GAAP Earnings per ADS $0.026 $0.036 $0.079 -27.6% -67.4% Non-GAAP Ne
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 Qingdao, Xiamen, Chongqing, Xian 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 2016 Q3 Driver Market Share HIMX TFT Driver IC Market Share by Application (2Q16 Market Share %) 2Q16 FocalTech 3Q16 4% Others 11% Samsung 4Q16 36.0% Raydium 35.6% 4% 23% 32.3% (22%) MediaTek 4% 22.5% 23.3% 22.3% 22.0% 19.8% 18.7% MagnaChip Novatek 18.3% 18.5% 6% 16% 14.1% (17%) Hi
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 ranked world No. 1 in December 2016 and by 2019, its total TF
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 • Korean, Japanese and Chinese smartphone customers seeking product differentiation with AMOLED panels • Leading China panel makers has ramped up their investments in AMOLED manufacturing and accelerate t
Slide 16: LCOS Microdisplay
LCOS Microdisplay 3 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 one of the technolog
Slide 17: Touch panel controllers
4 Touch Touch Panelpanel controllers Controllers Market Trends • Integration of Display & Touch by panel makers and OEMs in Korea, China and Taiwan • In-cell display with TDDI rapidly becoming the preferred choice for smartphone brand customers’ next gen. mid-to-high end models HIMX Strategies and M
Slide 18: CMOS image sensors and WLO
5 CMOS CMOS Imageimage sensors and WLO Sensors Ultra Low Power Sensor Applications Market Trends • CIS development accelerating in functionality and new applications • Advanced Wafer-Level Optics (WLO) is the future for AR devices, computational optics, 3D sensing and 3D depth scanning • Market lead
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: 2016 YTD Financial Review
2016 YTD Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history Strong growth across all major product lines in 2016 Unit Volume Revenues (unit, M) (US$ M) 1,516 1,500 1,464 $1,000 $918 1,400 1,337 1,297 1,309 $900 1,300 $833 $841 1,152 1,156 1,165 $803 1,200 $800 $771 $745 $737 1,069 1,100 $692 $700 $692 1,000 975 $643 $633 900 $600
Slide 22: A better balanced product mix
A better balanced product mix…. • Growing large-sized panel drivers in 2015 and beyond • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • LCOS microdisplay and Wafer Level Optics: Positive top and
Slide 23: ....and a diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Gross margin is a key business focus
Gross marginis a key business focus Gross margin Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM (US$M) 30. 0% (US$M) Better product mix lifts blended margin $1,4 00.0 24.5% 24.6% 24.5% 23.1% 23.6% 24.2% 25. 0% China Sales ROW Sales $1,2 00.0 22.0% GM 25.6% 20.5% 21.0% 19.8% GM 26.
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $250 19.1% $0.57 17.3% 17.2% 16.8% $0.39 14.2% 15.5% 15.2% 15.8% $0.40 10.7% 14.0% $0.30 $0.36 $0.30 0.5 $0.21 $0.19 $0.15 $200 $0.06 $150 0 $112.6 $150 $143.9 $133.2 $132.5 $135.1 -0.5 $117.5 $100 $109.0
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $120 $143.9 $140 $133.2 $132.5 $135.1 $100.6 $100 $117.5 $90.1 $120 $56.3 $108.9 $39.3 $103.5 $41.4 $76.4 $79.5 $98.3 $99.7 $38.1 $80 $73.8 $100 $37.1 $29.9 $32.6 $27.0 $23.3 $60 $57.5 $80 $49.1 $47.5 $60 $40 $30.1 $87.6 $91.
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement December Income31,Statement 2016 US$’000 4Q-2016 4Q-2015 3Q-2016 Y2016 Y2015 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues $203,443 $177,977 $218,081 $802,917 $691,789 Cost of revenues 164,517 137,243 162,348 608
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet December Balance31,Sheet 2016 US$’000 Balance Sheet December 31, 2016 September 30, 2016 December 31, 2015 (Unaudited) (Unaudited) (Audited) Assets Current Assets: Cash and cash equivalents $184,452 $140,805 $129,829 Investments in marketable securities available-
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement December Summary31, 2016 of Cash Flow 4Q-2016 3Q-2016 2016FY 2015FY (Unaudited) (Unaudited) (Unaudited) (Audited) US$’000 Net income $3,501 $13,391 $48,747 $21,462 Depreciation and amortization 3,448 3,393 13,756 14,164 Share-based compensation expenses 254
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 Penny Lin, IR Manager Main: +886-2-2370-3999 #22320 Corpor
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