Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation August, 2014 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: 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 4: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (08/06/14) $ 6.55 Basic Weighted Ave. Out. ADS (2Q14) 170.9M Diluted Weighted Ave. Out. ADS (2Q14) 172.1M Equivalent ADS Out. (2Q14) 170.5M Market Capitalization (08/06/14) ~$ 1.12B Insider Ownership* ~31.6% 2Q2014 2Q2013 1Q2014 YoY QoQ
Slide 5: 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 6: 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 Wafer Level Optics and modules for Infinity Color Technology CIS 2D to 3D Conversion In-house Color F
Slide 7: 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 8: 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 9: 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 Assembly and Testing 9
Slide 10: Shipment and Revenue Track Record
Shipment and Revenue Track Record Consistent shipment growth Strong revenue rebound Volume Revenues (unit, M) (US$ M) 1,500 $1,000 1,400 1,337 $918 1,297 1,300 $900 $833 1,200 1,152 1,156 1,165 1,069 $800 $745 $771 1,100 $737 $692 1,000 975 $700 $643 $633 900 $600 800 $540 719 704 700 $500 600 $391
Slide 11: Improved Margin and Profitability
Improved Margin and Profitability OPEX and % of Total Sales Revenues Gross Margin (US$mm / %) (US$mm) (%) $250 17.3% 17.2% 15.2% 14.8% 14.2% 15.5% 14.0% 0.2 $1,000 10.7% $918.2 $200 0.1 24.5% 24.9% 24.4% $900 22.0% 23.1% $150 $143.9 $832.8 0 21.0% $117.5 $800 $770.7 $98.1 $98.3 $99.7 $109.0 $103.5 $
Slide 12: Quarterly Financial Performance
Quarterly Financial Performance (US$ M) Revenues Inflection Gross Margin $220 $207.0 30% Point $200 $189.5 $190.4 $190.6 $192.8 $195.2 $194.6 $196.4 24.6% 25.1% 24.7% 23.1% 23.3% $180 $169.2 $166.7 $175.7 25% 22.1% $162.1 Non-Driver 25.3% $160 18.5% 24.6% 24.2% 20% 22.9% 23.3% $140 $120 84 87 85 111
Slide 13: More Balanced Product Mix
More Balanced Product Mix Fast growing small and medium-sized panel driver business Increasing non-driver sales to diversify sales base and improve gross margin New product shipments from LCOS and WLO in 2014 Revenues (US$ M) $918 $833 $692 $643 $633 $737 $771 $391 100% 2.60% 5.1% 6.7% 8.2% 12
Slide 14: Customer Mix
Customer Mix Largely reduced dependence on one single customer: Diversifying product revenues by non-driver product wins and leveraging existing customers Non-Innolux revenues grew 23.0% YoY in 2013 and grew 12.2% YoY in 1H14 Innolux disposed of its entire equity holding in Himax on June 19th,
Slide 15: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback Cash Dividend Share Buyback Distributed a total of $327 million of dividend since IPO Initiated four share buyback programs totaling $158 Committed to paying annual dividends referenced million since 2007 primarily on prior year’s profitability Repurchased a t
Slide 16: Leading Display Driver Provider
Leading Display Driver Provider 2014 Q1 Driver Market Share Growing Market Share of HIMX Small/ Medium-sized Panel Driver by Application 32.8% 25.8% 24.4% 21.0% 21.5% 21.7% Smartphone Tablet Auto 2Q13 2Q14 One of the leading players in display driver ICs Strong growth in small and medium-sized d
Slide 17: Growth Opportunity #1 – Mobile Display Drivers
Growth Opportunity #1 – Mobile Display Drivers 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 to work closely with end-customers: 1920 FHD 1600 1536 20
Slide 18: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity #2 – CMOS Image Sensors Premium quality CMOS image sensor products to capture Resolution Trend by CMOS Image Sensor2 the US $12.3B1 market (2017): (Unit: Mps) 12-16 CAGR 4,273 14.5% High sensitivity, low noise, cost effective, and low power 3,937 consumption design in highly i
Slide 19: Growth Opportunity #3 – LCOS Micro Display
Growth Opportunity #3 – LCOS Micro Display Proprietary LCOS microdisplay solutions: Primary product focus is Head-Mounted Display Market leader of the LCOS industry (HMD), HUD and industrial applications Successfully adopted in camera and handset applications New design wins, and on-going
Slide 20: What are Wearable Electronics?
What are Wearable Electronics? Real-time Experience Recorder With Display Without Display Source: Google; Sony; Oculus Source: Nike; uPlay; Sony; Samsung; Qualcom; Intel; Geak, MC10; O’Neil 20
Slide 21: We're all going "Iron Men"?
We’re all going “Iron Men”? Display Augmented Reality Gesture Recognition Source: Movie “ Iron Man” 21
Slide 22: Himax Solutions for Wearable Device
Himax Solutions for Wearable Device Compact and Slim Imaging Solution Augmented Reality and Virtual Reality Systems Detector Camera Array Camera Eye tracking & IR sensing Depth & 3D information Pico-projector Pico-projector LCOS microdisplay Micro light guide 22
Slide 23: Growth Opportunity #4 – Touch Panel Controller
Growth Opportunity #4 – Touch Panel Controller Sales tripled in 2012 due to increased share of sales to leading smartphone brand customer and new shipments to China handset players Product line covers cellphone and tablet markets Expect a strong growth in 2014 supported by numerous new design-
Slide 24: Income Statement
Income Statement (US$’000) 2Q-2014 2Q-2013 1Q-2014 Y2013 Y2012 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues from others, net $196,404 $164,421 $194,642 $684,184 $485,281 Revenues from related parties, net * 0 42,536 0 86,555 251,974 Revenues 196,404 20
Slide 25: Balance Sheet
Balance Sheet June 30, 2014 June 30, 2013 December 31, 2013 (US$’000) (Unaudited) (Unaudited) (Audited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $172,932 $147,117 $128,108 Restricted cash equivalents and marketable securities 108,393 74,100 108,399 A
Slide 26: Summary Cash Flow
Summary Cash Flow 2Q-2014 2Q-2013 6M-2014 2013FY 2012FY (US$’000) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Net income $23,187 $18,074 $38,619 $55,924 $50,138 Depreciation and amortization 3,520 3,554 7,139 14,309 13,299 Share-based compensation expenses 350 450 700 1,840 1,936 Gain on
Slide 27: 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 28: 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 29: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO Scott Powell, SVP +886-2-2370-3999 #22300 PCG Advisory Group, LLC +1-949-585-9838 #252 Main: +1-646-780-8850 jackie_chang@himax.com.tw spowell@pcgadvisory.com Steven Lin, IR Manager Corporate Counsel Baker & McKenzie +886-2-237
Slide 30: Drive for better vision
ee —), Himax Drive for better vision