Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (May 2023)
42 slides from Himax Technologies's investor presentation, May 2023
Slide 1: Drive for better vision – May 2023 Investor Presentation
Drive for better vision : HIMX May 2023 INVESTOR PRESENTATION
Slide 2: Forward Looking Statements
Forward Looking Statements Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the
Slide 3: Global Display and Imaging IC Design House
Global Display and Imaging IC Design House Leading IC Provider US $1.2 Billion 40% Global Market Share Listed on NASDAQ Global Top 10 2022 Sales Driver IC for NASDAQ: HIMX Fabless IC Design Avg. 60 Million ICs Automotive Displays Since 2006 Company in 2021* Shipment Per Month * Global Top 10 IC Desi
Slide 4: Himax – Driver for Better Future
Himax – Driver for Better Future Automotive - Very Large-Size, Curved, In-Cell Touch Next Generation Displays - Head-Up Display (AR-HUD) - 3D Sensing - Ultralow Power WiseEyeTM Smart Image Sensing AIoT - World Leading Ultralow Power WiseEye Smart Image Sensing for Endpoint - Total Solution: AI Proce
Slide 5: Recognized Industry Leader
Recognized Industry Leader For the last 30 years, we have worked with leading OEMs to develop the most recognized imaging and human interfacing technologies 1990s 2000s 2010s 2015 and Beyond Founder B.S. Wu pioneers flat Chairman Wu establishes Himax to meet Himax gains market share with design Hima
Slide 6: Investment Highlights
Investment Highlights Leading Imaging and Human Interfacing Technology Innovator ◼ Global display driver player with a wide range of display image processing technologies for panels of all sizes ◼ Human interfacing total-solution provider specialized in immersive, touchless and 3D perception related
Slide 7: Himax on NASDAQ
Himax on NASDAQ 12 Month Trading Chart May 10, 2023 Fiscal Year December 31 Last-Traded Price (5/10/2023) $6.86 Diluted Weighted Ave. Out. ADS 174.8M Equivalent ADS Out 174.4M Market Capitalization (5/10/2023) $1,197M Average Volume 0.76M Insider Ownership* 24.5% * Insider ownership includes executi
Slide 8: History of Dividend and Share Buyback
History of Dividend and Share Buyback $869 HAS BEEN RETURNED TO SHAREHOLDERS INCLUDING DIVIDENDS AND SHARE BUYBACKS SINCE IPO MILLION Dividend Payout Ratio (%) Total Payout (US$M) Executed Share Buybacks from 2007-2022 119.0% (US$M) 100.0% 100.0% Unutilized Portion Executed Share Buyback 75.0% 83.3%
Slide 9: Q1 Summary and Q2 Guidance
Q1 Summary and Q2 Guidance 1Q2023 4Q2022 1Q2022 QoQ YoY Revenues $244.2M $262.3M $412.8M -6.9% -40.8% IFRS Gross Margin (%) 28.1% 30.5% 47.0% -2.4% -18.9% IFRS Profit $14.9M $42.2M $115.9M -64.6% -87.1% IFRS Earnings per ADS $0.085 $0.241 $0.663 -64.5% -87.1% Non-IFRS Gross Margin (%) 28.1% 30.5% 47
Slide 10: A Global Semiconductor Company
AForward Global Semiconductor Looking Statements Company Himax’s Global Reach ▪ Fabless semiconductor company with world leading visual imaging processing technologies ▪ Global market leader in TFT-LCD Asan, Bundang display driver and timing controller ICs Sales Design Technical Support Beijing, Sha
Slide 11: Corporate Structure
Corporate Structure Himax Technologies, Inc. Himax Technologies, LTD. Himax Display, Inc. Himax Imaging, LTD. ▪ TFT-LCD Drivers, EPD Drivers, and ▪ LCoS Modules for Head- ▪ CMOS Image Sensors AMOLED Drivers Mounted Display, Head-up ▪ Ultralow Power Always-on ▪ TCON and Bridge IC Display and Pico-pro
Slide 12: Our Technologies Are Used by Consumer Brands Worldwide
Our Technologies Are Used by Consumer Brands Worldwide 12
Slide 13: Display Driver IC (DDIC)
Display Driver IC (DDIC) We are a leader in display driver ICs used to enable large, small and medium-sized flat panel displays in TFT and Touch MARKETS WE SERVE Smartphones, Tablets, Automotive, Monitors, Notebooks, TVs, Gaming, Education, Industrial, Healthcare plus 100’s more applications that us
Slide 14: Our DDIC Market Share
Our DDIC Market Share 4Q22 Driver Market Share We provide a complete solution of (3Q22 Market Share %, Revenue) image processing technologies and Others leverage our expertise in TV, Monitor, Solomon 9% NB, mobile devices, automotive and Systech 2% other mass-market technology MediaTek releases 2% F
Slide 15: TDDI Technologies
TDDI Technologies We provide technologies for touch sensor displays including in-cell touch and the fast- Smartphone Tablet Automotive growing segment of Touch and Display Driver Integration (TDDI) single-chips MARKETS WE SERVE Beginning with smartphones, expanded to tablets, automotive, and many ot
Slide 16: Leadership in Automotive Displays
Leadership in Automotive Displays We offer comprehensive automotive display solutions covering DDIC, TDDI , TCON and AMOLED. Moreover, we also offer leading-edge non-driver solutions, covering LCoS, WLO, CIS, 3D Sensing and WiseEye Smart Image Sensing Dash Cam for advanced automotive applications AI
Slide 17: WLO and 3D Sensing
WLO and 3D Sensing We offer industry leading WLO design know-how and mass production expertise in structured light and ToF. Himax 3D Sensing offers SLiM total solution with leading depth perception feature and key components, 3D decoder IC, to reach out diversified end applications MARKETS WE SERVE
Slide 18: WiseEye Smart Image Sensing and CIS
WiseEyeTM Smart Image Sensing and CIS Himax WiseEye Smart Image Sensing technology brings computer vision AI to endpoint devices with extremely low power. We participate tier-1 endpoint-to-cloud ecosystems for broad market access. Himax CMOS image sensors include RGB, near infrared (NIR) and ultralo
Slide 19: LCoS Microdisplays
LCoS Microdisplays AR HUD (LCoS 2.0 Phase Modulation) We are the leader and long-term innovator of Liquid AR Glasses Crystal on Silicon (LCoS) displays and one of the companies capable of high-volume production runs of LCoS displays for the launch of mass-market devices AR Glasses: Hearing Aid AR Ga
Slide 20: Opportunities in Metaverse
Opportunities in Metaverse Himax owns exceptional Optics, 3D Sensing, WLO and WiseEye AI solutions with mass production records. The diverse non-driver solutions fulfill different AR/MR/XR/VR metaverse LCoS WLO related application needs in AR 3D AI Displaying & Human Interface Sensing WLO AR Glasses
Slide 21: Our Customers
Our Customers DISPLAY DRIVERS We are In Displays Display Driver TCON PMIC On Touch Panels LED Driver Controller IC P-gamma OP WAFER LEVEL OPTICS CMOS IMAGE SENSORS Others ASIC SERVICE & IP LCOS TDDI & TOUCH LICENSNING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and licensing In Camera Modules CM
Slide 22: Fabless Manufacturing Expertise
Fabless Manufacturing Expertise Display Driver CMOS Image Sensor Back-end Wafer Fabrication Package Chip Probe Testing Gold Bumping FT RW SOC Processed Tape Chip Probe Testing Chip Probe Testing Package Assembly and Testing FT 22
Slide 23: Market Opportunities by Product Application and Himax Strategies
Market Opportunities by Product Application and Himax Strategies 23
Slide 24: TDDI Growth Opportunity
GROWTH OPPORTUNITY 1 TDDI Market Trends ▪ Expect higher TDDI penetration in auto and tablet going forward Global Smartphone TDDI Demand Forecast ▪ TDDI fits in consumer demand for slimmer devices 2019-2025 (Omdia, 2023) ▪ Higher penetration of TDDI is refreshing smartphone /tablet/ automotive life c
Slide 25: Display Driver IC (DDIC) Growth Opportunity
GROWTH OPPORTUNITY 2 Display Driver IC (DDIC) Market Trends • Chinese panel makers, benefited from Korean fab restructuring and increased their global market share, will procure more volume from Taiwan DDIC supply chain • Leading Chinese panel makers’ shipments continue to dominate the market. China
Slide 26: WLO and 3D Sensing Growth Opportunity
GROWTH OPPORTUNITY 3 WLO and 3D Sensing Market Trends Himax WLO for 3D Sensing ▪ Wafer-Level Optics (WLO) remains the best technology for structured light, Time-of-Flight (ToF) related 3D sensing ▪ Very few companies can provide advanced WLO solutions to achieve optical high efficiency, small form f
Slide 27: WiseEye Smart Image Sensing and CIS Growth Opportunity
GROWTH OPPORTUNITY 4 WiseEyeTM Smart Image Sensing and CIS Market Trends Who uses Himax CIS ▪ Smart AI devices demand boosted, but very few companies can provide ultralow power solutions in vision AI in the area of human detection, people tracking, people counting, and gesture control. WiseEye Techn
Slide 28: LCoS Microdisplays Growth Opportunity
GROWTH GROWTHOPPORTUNITY OPPORTUNITY25 TDDI LCoSAdoption Rate Growth Microdisplays Market Trends Front Lit LCOS Advantages ▪ Many top name multinationals and start-ups are investing heavily • Compact Form Factor to develop the AR ecosystem, including applications, software, • Brightness • Power Effi
Slide 29: 2023 YTD Financial Review
2023 YTD Financial Review
Slide 30: Unit and Revenue History
Unit and Revenue History We are One of the Leading Semiconductor Companies in the World Units Sold and Revenue (in millions of units and millions of USD) $1,900 1,521 1,516 1,464 Revenue 1,297 1,337 1,309 1,311 1,323 1,069 1,156 1,165 1,192 1,256 1500 Units Sold 1,165 $1,700 975 719 711 1000 $1,500
Slide 31: A Balanced Product Mix
A Balanced Product Mix… Category Product Mix Large Panel Drivers S/M Panel Drivers Non-Driver 2.60% 5.1% 6.7% 8.2% 12.7% 14.0% 12.0% 13.2% 16.4% 20.0% 19.0% 20.0% 19.0% 18.9% 14.8% 15.0% 15.5% 16.7% 22.7% 22.0% 34.8% 44.6% 44.6% 53.9% 48.6% 46.0% 45.0% 45.8% 58.1% 62.3% 53.1% 44.5% 64.8% 63.3% 81.9%
Slide 32: Gross Margin is a Key Business Focus
Gross Margin is a Key Business Focus IFRS Measures Revenue & Gross Margin IFRS Measures Geographical Revenue Mix & Quarterly GM 200 0.0 US$M in Revenue and Gross Margin % 60. 0% US$M in Revenue and Quarterly Gross Margin % China Sales ROW Sales 48.4% 180 0.0 50. 0% 2019 2020 2021 2022 2023 40.5% Q3
Slide 33: OPEX and the Bottom Line
OPEX and the Bottom Line IFRS Measures OPEX and % of Total Sales IFRS Measures Profit and EPS (US$M/ %) (US$M/ US$) 23.2% 23.20% 19.1% 20.9% $2.50 $230 15.5% 17.2% 15.8% 19.1% 18.4% $435 22.8% 13.2% $230 16.8% 14.0% 15.2% $385 $203 $335 $180 $166 $163 $159 $156 $285 $1.36 $133 $133 $135 $235 $437 $1
Slide 34: Performance History
Performance History IFRS Measures Operating and R&D Expenses (US$M) IFRS EBITDA (US$M) R&D Expense Operating Expense ex. RD Measures Total Operating and R&D Expense (US$M) $567 99 109 104 117 133 132 135 159 166 156 163 203 230 51 $54 $52 $41 $43 $41 $41 $301 $41 $39 $38 $33 $37 $23 $30 $176 $123 $1
Slide 35: Gross Margin – Non-IFRS
Gross Margin – Non-IFRS Non-IFRS Measures Revenue & Gross Margin Non-IFRS Geographical Revenue Mix & Quarterly GM Measures US$M in Revenue and Quarterly Gross Margin % 200 0.0 US$M in Revenue and Gross Margin % 60. 0% China Sales ROW Sales 48.5% 180 0.0 50. 0% 2019 2020 2021 2022 2023 40.6% Q3 Q4 Q1
Slide 36: OPEX and the Bottom Line – Non-IFRS
OPEX and the Bottom Line – Non-IFRS Non-IFRS Measures OPEX and % of Total Sales Non-IFRS Measures Profit and EPS (US$M/ %) (US$M/ US$) 22.9% $2.65 22.0%22.2% $230 18.1% 17.6% 18.2% 15.8% 14.4% 15.1% $435 13.4% 11.1% 15.4% 12.6% 13.6% $181 $385 $180 $172 $160 $335 $151 $154 $156 $464 $1.58 $285 $276
Slide 37: Performance History – Non-IFRS
Performance History – Non-IFRS Non-IFRS Measures Operating and R&D Expenses (US$M) Non-IFRS Measures EBITDA (US$M) R&D Expense Operating Expense ex. RD Total Operating and R&D Expense (US$M) 86 100 93 105 121 126 124 151 160 154 156 172 181 44 $599 $43 $45 $42 $41 $39 $39 $349 $37 $38 $36 $27 $29 $3
Slide 38: Income Statement
Income Statement Income Statement 38
Slide 39: Balance Sheet
Balance Sheet * Short-term secured borrowings is guaranteed by restricted deposit 39
Slide 40: Cash Flow Statement
YOR Na / | \ Profit for the period Depreciation and amortization Share-based compensation expenses Finance costs Income tax expense (benefit) Inventories write downs Others ‘Changes in: Decrease (increase) in accounts receivable (including related parties) Decrease (increase) in inventories Increase
Slide 41: Management Team
Management Team Dr. Biing-Seng Wu, Chairman of the Board - Dr. Wu, the founder of Himax, previously served as President, CEO and 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 with profound experience. With significan
Slide 42: Contact Us
Contact Us Eric Li, Chief IR/PR Officer Corporate Company Tel: +886-6-505-0880 Counsel hx_ir@himax.com.tw Karen Tiao, IR Relations SEC Legal Tel: +886-2-2370-3999 Counsel hx_ir@himax.com.tw Mark Schwalenberg, Director Investor Relations - US Representative Auditor MZ North America Tel: +1-312-261-64
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