Slide 1: Investor Presentation
: HIMX Investor Presentation September, 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 portfolio for panels of all sizes and in- house intellectual property • Image technology solutio
Slide 5: Capital markets snapshot
Capital markets Summary snapshot Financials Fiscal Year December 31st Last-Traded Price (09/08/15) $ 7.25 Basic Weighted Ave. Out. ADS 171.6M Diluted Weighted Ave. Out. 172.2M ADS 171.2M Equivalent ADS Out. Market Capitalization ~$ 1.25B (08/06/15) Insider Ownership* * Insider ownership includes exe
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 2Q2015 2Q2014 1Q2015 YoY QoQ Revenues $169.2M $196.4M $179.0M -13.9% -5.5% Gross Margin (%) 23.8% 24.2% 25.7% -0.4% -1.9% GAAP Net Income* $8.8M $24.1M** $12.6M -63.4% -29.7% GAAP Earnings per ADS $0.051 $0.140** $0.073 -63.4% -29.7% Non-GAAP
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, Inc. • 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 Share of S/M Sized Panel Divers by Application 27.3% Raydium, 3.0% 26.0% Others, 11.4% 1Q15 2Q15 22.5% 22.5% Lusem, 3.2% Magnachip, 3.4% Samsung, 23.1% 17.0% 16.0% Focaltech, 3.5% Ilitek, 4.0% Novatek, 19.0% Sitronix, 4.1% 9.3% Smartphone Tablet Aut
Slide 14: Grow large panel DDIC unit sales and market share
Grow large panel DDIC unit 1 sales and market share 4K TV Penetration Actual & Forecast Market Trends 40% 120 Continuous new TFT-LCD capacity expansion in China in 2015 35% and beyond remains aggressive with a special focus on 100 advanced display technologies 30% 80 China’s top 6 TV brands entered
Slide 15: Grow S/M panel DDIC Launch new products
Grow S/M panel DDIC 2 Launch new products Market Trends Display Trends Display Trends for Smartphone for Tablet Display trends in smartphone and tablet create a large, viable 2560 2160 4K2K growth market QHD Panel makers are direct customers but need to work closely 2014 and beyond 1920 Brand with e
Slide 16: LCOS Microdisplay
LCOS Microdisplay 3 Design, Manufacture, Ship Market Trends Head mounted technology is about to change the world. AR and VR product development for niche, commercial, gaming and mass market Front Lit LCOS Advantages • Form Factor /Compact Design Limited companies provide the combination of R&D, join
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 camera, 5,798 6,007 computational optics, and special-purp
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 $700 1,000 $643 $633 900 $600 $540 800 719 648 $500 700 600 $400 $348 500 460 $300 $300 400 300 $200 221
Slide 22: A better balanced product mix
A better balanced product mix • Growing large-sized panel drivers in 2015 and beyond • Small and medium-sized panel driver business slowing down due to weak market sentiment • Further diversify products and expand customer portfolio in various segments • Increasing non-driver sales to diversify sale
Slide 23: ....and a diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Product mix boost gross margins
Gross Productmargin mix boost gross margins Revenues Gross Margin % (US$M) $1,000 $918.2 Better product mix $900 boosting blended margin $840.5 $832.8 $800 $770.7 $737.3 $692.4 $700 $642.7 24.5% 24.9% 24.8% $633.0 $600 22.0% 24.5% 21.0% $500 23.1% $400 20.5% $348.2 19.8% $300 $200 $100 $0 2007 2008
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) (US$M / US$) $200 $0.57 $0.39 $250 17.2% $0.40 0.5 15.2% 17.7% $0.36 17.3%14.2% 0.2 $0.30 15.5% 15.8% $0.21 $0.19 10.7% 14.0% $0.12 $0.06 $150 $200 0 0.1 $112.6 $150 $143.9 0 -0.5 $133.2 $100 $117.5 $109.0 $103.5 $76.4 $98.
Slide 26: Performance in quarters
Performance in quarters Revenues (US$ M) $222.3 $227.2 Inflection Gross Margin $220 $207.0 Point $196.4 $200 $189.5 $190.4 $190.6 $192.8 $195.2$194.6 $179.0 $180 $169.2 $166.7 $175.7 $169.2 25.7% $162.1 24.6% 25.1% 24.2% 24.7% $160 23.1% 23.3% 23.8% Non-Driver 22.1% $140 25.3% 24.7% 18.5% 22.9% 24.6
Slide 27: Performance in quarters: Income Statement
Performance in quarters Income Statement 2Q-2015 2Q-2014 1Q-2015 Y2014 Y2013 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues from others, net $169,185 $196,404 $179,045 $840,542 $684,184 Revenues from related parties, net* 0 0 0 0 86,555 Revenues 169,185
Slide 28: Performance in quarters: Summary of Cash Flow
Performance in quarters Summary of Cash Flow 2Q-2015 1Q-2015 2014FY 2013FY (Unaudited) (Unaudited) (Audited) (Audited) Net income $7,616 $11,561 $63,903 $55,924 Depreciation and amortization 3,366 3,966 14,592 14,309 Share-based compensation expenses 534 535 1,929 1,840 Gain on disposal of investmen
Slide 29: Performance in quarters: Balance Sheet
Performance in quarters Balance Sheet June 30, 2015 March 31, 2015 June 30, 2014 Balance Sheet (Unaudited) (Unaudited) (Unaudited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $164,518 $178,769 $172,932 Restricted cash equivalents and marketable securiti
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