Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (August 2018)
34 slides from Himax Technologies's investor presentation, August 2018
Slide 1: August 2018 Investor Presentation
Human Interface and Display Technologies : HIMX Augutst 2018 INVESTOR PRESENTATION
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: Recognized Industry Leader
Recognized Industry Leader For the last 30 years, we have worked with leading OEMs to develop and the most recognized imaging and human interfacing technologies. 1990s 2000s 2010s 2018 and Beyond Founder B.S. Wu pioneers flat Chairman Wu establishes Himax to meet Himax gains market share with design
Slide 4: Investment Highlights
Investment Highlights Leading Imaging and Human Interfacing Technology Innovator ▪ 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 A Diversified Base of Customers and Revenues ▪ DDIC
Slide 5: Himax on NASDAQ
Himax on NASDAQ 12 Month Trading Chart Fiscal Year December 31 Last-Traded Price (10/15/18) $5.90 Basic and Diluted Weighted Ave. Out. ADS 172.5 Equivalent ADS Out 172.1 Market Capitalization (10/15/18) $1.0 B 50-Day Avg. Daily Volume (10/15/18) 1,857,087 Annualized Dividend $0.09 Insider Ownership*
Slide 6: Shareholder-Focused, Returning Profits
Shareholder-Focused, Returning Profits Himax Dividend and Policy Himax Share Buyback ▪ Distributed a total of $458 million of dividend since IPO (Payout in July) ▪ Initiated four share buyback programs totaling ▪ Dividends referenced primarily on prior year’s profitability $158 million since 2007 ▪
Slide 7: Summary and Pre-Announced Financials
Summary and Pre-Announced Financials 2Q2018*** 2Q2017*** 1Q2018*** YoY QoQ Revenues $181.4M $151.7M $162.9M +19.5% +11.4% Gross Margin (%) 23.0% 23.8% 22.5% -0.8% +0.5% IFRS Profit (loss) $2.0M ($0.7M) ($2.8M) +400.9% +172.3% IFRS Earnings (loss) per ADS $0.012 ($0.004) ($0.016) +400.7% +172.3% Non-
Slide 8: A Global Semiconductor Company
AForward Global Semiconductor Looking Statements Company Himax’s Global Reach ▪ Fabless semiconductor company with world leading visual imaging processing technologies Asan, Bundang ▪ Global market leader in TFT-LCD Sales Design display driver and timing controller Beijing, Shanghai, Suzhou Technica
Slide 9: Corporate Structure
Corporate Structure Himax Technologies, Inc. Himax Technologies, LTD. Himax Display, LTD. Himax Imaging, LTD. ▪ TFT-LCD Driver and ▪ LCOS Modules for Head- ▪ CMOS Image sensors AMOLED Driver Mounted Display, Head-up ▪ TCON and P-Gamma OP Display and Pico-projector ▪ Touch Controllers Applications ▪
Slide 10: Our Technologies Are Used by Consumer Brands Worldwide
Our Technologies Are Used by Consumer Brands Worldwide
Slide 11: Display Driver IC (DDIC)
Display Driver IC (DDIC) We are a leader in display driver ICs used to enable flat panel display in TFT, Touch and AMOLED in large, medium and small sized display panels MARKETS WE SERVE Smartphones, Tablets, Monitors, Notebooks, TVs, Automotive Gaming, Education, Healthcare plus 100’s more applicat
Slide 12: Our DDIC Market Share
Our DDIC Market Share 2018 Q1 Driver Market Share We have the ability to provide a complete solution of (4Q17 Market Share %) image processing technologies and leverage our MediaTek 3% expertise in mobile devices and other mass-market FocalTech 3% Others 10% technology releases MagnaChip 4% ▪ Large
Slide 13: TDDI Technologies
TDDI Technologies We design technologies for touch sensor displays including in-cell touch and the fast-growing segment of Display Driver Integration (TDDI) single-chips MARKETS WE SERVE Beginning with smartphones, will expand to tablet, laptops, car navigation, and many other consumer electronic de
Slide 14: WLO and CMOS
WLO and CMOS We offer critical 3D sensing technologies, namely structured light, active stereo camera (ASC) and ToF, and optical finger print solution. Our CMOS image sensors include near infrared (NIR) sensors for 3D sensing and ultra-low power computer vision Always- on-Sensor (AoSTM) Wafer Level
Slide 15: LCoS Microdisplays
LCoS Microdisplays We are the leader and long-term innovator of Liquid Crystal on Silicon (LCoS) displays and the only company capable of high-volume production runs of LCoS displays for the launch of mass-market devices. Our Front Lit LCoS Technology Advantages • Compact Form Factor • Brightness •
Slide 16: 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 TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and In Camera Modules licensing CMOS
Slide 17: Fabless Manufacturing Expertise
Fabless Manufacturing Expertise 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 17
Slide 18: Market Opportunities by Product Application and Himax Strategies
Market Opportunities by Product Application and Himax Strategies 18
Slide 19: 3D Sensing
GROWTH OPPORTUNITY 1 3D Sensing 3D Sensing Chip Sales and Adoption Rates Market Trends in Millions $ USD (Trendforce 2018) ▪ Wafer-Level Optics (WLO)-enabled 3D sensing is a game-changing $15,000 technology for next generation smartphones, tablets and new Revnues 46.0% $13,000 applications in AR/VR,
Slide 20: TDDI
GROWTH OPPORTUNITY 2 TDDI Market Trends TDDI Demand Forecast 2015-2022 ▪ Expect higher TDDI penetration in smartphones going In Millions of Units ( IHS Market, 2018) forward and continue to accelerate 800 Unit Demand in Millions ▪ Full screen 18:9 aspect ratio displays becoming the trend 800 740 700
Slide 21: LCoS Microdisplays Adoption Growth
GROWTH GROWTHOPPORTUNITY OPPORTUNITY23 TDDI LCoSAdoption Rate Growth Microdisplays Market Trends ▪ Many top name multinationals or new start-ups are investing Front Lit LCOS Advantages heavily to develop the AR ecosystem -- applications, software, • Compact Form Factor operating system, system elect
Slide 22: Display Driver IC (DDIC)
GROWTH OPPORTUNITY 4 Display Driver IC (DDIC) Market Trends Continual Progression to Higher Resolution • Continuously aggressive new Gen 8 above TFT-LCD capacity Displays and AMOLED expansion in China with a special focus on advanced display TFT LCD a-Si TFT LCD Oxide TFT LCD LTPS AMOLED LTPS techno
Slide 23: 2018 YTD Financial Review
2018 YTD Financial Review
Slide 24: Unit and Revenue History
Unit and Revenue History We are One of the Leading Semiconductor Companies in the World We have shipped approximately 15 Billion Semiconductors 2002-1H2018 Unit Sales and Revenues (in millions of units and millions of $USD) $1,200 1521 1516 1500 Revnues 1464 $1,000 Units Sold 1337 1309 1311 1300 106
Slide 25: A Balanced Product Mix…
A Balanced Product Mix… ▪ Global market share leader in small and medium-sized panel driver ICs ▪ Market leader in 3D sensing – Structured light and active stereoscopic 3D sensing total solutions will represent a paradigm shift when it starts to achieve a broader market adoption ▪ Increasing non-dri
Slide 26: …and a Diversified Customer Base
…and a Diversified Customer Base Largely reduced dependence on one single customer, Innolux. ▪ Diversifying product revenues by non-driver product wins and leveraging existing customers ▪ Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Himax’s related
Slide 27: Gross Margin is a Key Business Focus
Gross Margin is a Key Business Focus Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM US$M in Revenues and Gross Margin % of Sale 30. 0% US$M in Revenues and Quarterly Gross Margins $1,4 00.0 24.6% 24.5% 24.2% 24.4% China Sales ROW Sales 24.5% 23.1% 23.6% 23.5% Quarterly Gross Margi
Slide 28: OPEX and the Bottom Line
OPEX and the Bottom Line $250 OPEX and % of Total Sales IFRS Profit and EPS (US$M / %) 23.2% 23.6% (US$M / US$) 19.1% 17.3% 17.2% 16.8% $250 15.8% $200 14.2% 15.5% 14.0% 15.2% 10.7% $0.57 $158.7 $200 $143.9 $0.40 $0.39 $150 $133.2 $132.5 $135.1 $0.36 $117.5 $150 $0.30 $0.30 $109.0 $103.5 $98.1 $98.3
Slide 29: Performance History
Performance History Operating and R&D Expenses (in millions USD) EBITDA (in millions USD) R&D Expense Operating Expense ex. RD $120 $100.6 $41.0 $100 $90.1 $56.3 $39.3 $79.5 $41.4 $38.1 $76.4 $80 $73.8 $37.1 $23.3 $29.9 $32.6 $27.0 $60 $57.5 $49.1 $47.5 $47.7 $20.6 $117.7 $40 $91.8 $94.4 $95.8 $30.1
Slide 30: June 30, 2018 Income Statement
June 30, 2018 Income Statement Income Statement 2Q-2018 2Q-2017 1Q-2018 Y2017 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $181,365 $151,730 $162,851 $685,167 Cost of revenues 139,571 115,556 126,254 518,142 Gross profit 41,794 36,174 36,597 167,025 Gross marg
Slide 31: June 30, 2018 Balance Sheet
June 30, 2018 Balance Sheet June 30, 2018 March 31, 2018 June 30, 2017 (Unaudited) (Unaudited) (Unaudited) Assets Current Assets: Cash and cash equivalents $114,480 $139,806 $177,206 Financial assets at amortized cost 12,154 11,753 5,306 Financial assets at fair value through profit or loss 66 361 3
Slide 32: June 30, 2018 Cash Flow Statement
June 30, 2018 Cash Flow Statement 2Q-2018 1Q-2018 2017FY (Unaudited) (Unaudited) (Unaudited) Profit (loss) for the period $1,396 ($3,316) $25,538 Depreciation and amortization 5,180 5,098 16,680 Bad debt expenses 190 0 155 Share-based compensation expenses 93 91 997 Gain on disposals of property, pl
Slide 33: Management Team
Management 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 20 years. With 61 patents relat
Slide 34: Contact Us
Contact Us Jackie Chang, CFO Main: +886-2-2370-3999 #22300 John Mattio US Office: +1 (949) 585-9838 #252 US Investor Main: +1 (203) 885-1058 jackie_chang@himax.com.tw Relations jmattio@lamniaintl.com www.lamniaintl.com Company Ophelia Lin, IR Project Deputy Director Main: +886-2-2370-3999 #22202 Oph
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