Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation May, 2012 Himax Technologies, Technologies Inc. Inc 奇景光電股份有限公司
Slide 2: Forward Looking Statements
Forward Looking g Statements Factors that could cause actual events or results to differ materially include 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 d
Slide 3: Investment Highlights
Investment Highlights g g z A leading g “fabless” manufacturer in TFT-LCD p panel display p y drivers Pioneer in technology with a complete portfolio of display drivers for panels in all kind of sizes Business model with sophisticated supply chain management expertise z Product and customer dive
Slide 4: Selected Financials
Selected Financials Fiscal Year December 31st L t T d d Price Last-Traded P i (05/11/12) $2 12 $2.12 Basic Weighted Average Outstanding ADS (2011) 176.9M Diluted Weighted Average Outstanding ADS (2011) 176.9M Equivalent q ADS Outstandingg (Q1 (Q 2012)) 170.1M Market Capitalization (05/10/12) $360 M
Slide 5: Company Overview
Company p y Overview z Fabless semiconductor solutions provider with leading imaging processing technologies z A global market leader in TFT-LCD driver ICs z Pioneer in mobile projector microdisplays z Momentum in display system solutions, power management ICs, CMOS image sensors and wafer level opt
Slide 6: Display Driver ICs & Timing Controllers
Display p y Driver ICs & Timing g Controllers Display driver ICs and timing controllers are used in TVs, laptops, monitors, mobile phones tablets phones, tablets, digital cameras, car navigation, and many other consumer electronics devices. 6
Slide 7: Himax Operating Companies
Himax Operating p g Companies p Hi Himax T Technologies h l i Ltd Himax Media Solutions Solutions, Inc. z Display Drivers and Tcon z TV Chipsets z Touch Controllers z Monitor Scalers z Wafer Level Optics and modules z Infinity Color Technology for CIS z 2D to 3D Conversion z In-house Color Filter Fa
Slide 8: Skilled Management of Complex Supply Chains
Skilled Management g of Complex p Supply pp y Chains Wafer Fabrication L Large Panel P l Display Di l Driver Di Supply S l Chain Ch i Gold Bumping Processed Tape Chip Probe Testing Assembly and Testing 8
Slide 9: Himax's Global Footprint
Himax’s Global Footprint p Taiwan - Headquarters Taipei T i i Design Sales/Marketing Technical support Hsinchu D i Design Sales/Marketing Technical support Tainan Headquarters Design Manufacturing Operations Sales/Marketing Technical support U.S. China Japan Korea Irvine Beijing Ninbo Foshan Yokoham
Slide 10: Shipment and Revenue Track Record
Shipment p and Revenue Track Record Consistent shipment growth Volume Revenues (unit,M) (US$ M) 10
Slide 11: Gross Margin and Net Income (2007~2012Q1)
Gross Margin g and Net Income ((2007~2012Q1)) z With a better product mix, gross margin has improved to 22.1% in 4Q11 and 22.9% in 1Q12 z Improvement will continue exceeding current levels Gross Margin (US$ M) (US$ M) (US$ M) 11
Slide 12: Product Mix
Product Mix More balanced product mix: z Fast growing small and medium-sized panel driver z Increasing non-driver products Revenues $918 $833 $692 $643 $633 $167 (US$ M) 100% 2.60% 5.1% 6.7% 8.2% 12.7% 13.8% 15.50% 16 7% 16.7% 80% 22.0% 34.8% 44.6% 43.4% 60% 40% 81.9% 78.2% 71.3% 57.0% 20% 42 7% 42.
Slide 13: Quarterly Gross Margin and Net Income
Quarterly y Gross Margin g and Net Income z Revenues outperformed peers z Gross margin improvement due to better product mix z Continuous R&D commitment z Positive Outlook (US$ M) Revenues Gross Margin $169.2 $166.7 $166 7 $160.6 $162.1 Non--Driver Non $141.1 S/M Large Operating and R&D Expenses (US
Slide 14: Panel and Component Makers 1Q12 Top Line
Panel and Component p Makers 1Q12 Top p Line 1Q12 Revenues 1Q12 Revenues QoQ YoY QoQ YoY Driver IC Makers: Component Makers: Himax (consolidated) -1.5% 18.1% Optimax / 力特光電 -5.1% 36.5% Novatek / 聯詠 -10.2% 10.2% -10.4% 10.4% ROEC / 瑞儀光電 68.8% 7.9% Raydium / 瑞鼎 10.6% 6.1% Coretronic / 中光電 5.6% 0.5% Or
Slide 15: Revenue Breakdown
Revenue Breakdown Largely reduced dependence on one single customer: z Chi Mei Electronics is the large panel manufacturer that owns 14.9% of HIMX z Revenue in 1Q12 down to 37.9% from as high as 66.5% in 1Q08 15
Slide 16: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback y Cash Dividend Per ADS Share Buyback Programs z Cumulatively distributed ~$228 million of z Initiated 4 share buyback programs totaling cash dividend since IPO ~$158 million since 2007 z $21 million in 2011 and $44 million in 2010 z With regards to the Company’s Comp
Slide 17: Global Display Driver Market
Global Display p y Driver Market z Compared with maturing large display drivers, small and medium display p y drivers will continue to g grow in next few yyears z Smartphone and tablet segments continue at stronger annual growth rates T t l Display Total Di l Driver Di Market M k t Outlook O tl k (u
Slide 18: Himax Display Driver Market Share (2011)
Himax Display p y Driver Market Share ((2011)) z One of the leading players in display driver IC designs z Superior growth in small/medium-sized display driver market driving overall growth momentum Large-sized Panel Driver Small/Medium-sized Panel Driver Growing Market Share of HIMX Others Ilitek S
Slide 19: Growth Opportunity #1 – Smartphone Display Drivers
Growth Opportunity pp y #1 – Smartphone p Display p y Drivers z Technology leader in smartphone di driver IC ICs including i l di hVGA hVGA, nHD, HD WVGA, qHD and HD720 z Stronggggrow momentum from international and Chinese smartphone brands z Anticipate growth opportunity to continue in 2012 and be
Slide 20: Display Resolution Trends for Smartphone
Display p y Resolution Trends for Smartphone p z For the entry smart phone Mainstream is HVGA now; WVGA expected to be mid-to-entry in 2012 to 2013 Low-cost oriented z For high-end smart phone Himax is ready for high-end high end smart phones with HD720/ WXGA with LTPS/ GIP Eg., 4.3” HD720 Æ
Slide 21: Recent Smartphone Display Market Trend
Recent Smartphone p Display p y Market Trend Lenovo A60 ZTE KIS LG Optimus L3 HVGA Samsung Galaxy Mini2 UMEOX X2 Alcatel OT995 Coolpad Coolpad 9910 Coolpad Coolpad 5860 Lenovo A750 ZTE Blade II WVGA G ZTE Skate Acqua HTC One V Samsung Galaxy S WIFI Samsung Galaxy Beam N ki Lumia Nokia L i 610 ZTE Er
Slide 22: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity pp y #2 – CMOS Image g Sensors Traditional Camera Module Traditional camera z Premium P i quality lit CMOS iimage sensor module Wafer level products to capture the US$10 bn camera module market (2015): High Hi h sensitivity iti it and d llow noise i d design i in highly integrat
Slide 23: Growth Opportunity #3 – LCOS Micro Display
Growth Opportunity pp y #3 – LCOS Micro Display p y z Proprietary LCOS pico-projector solutions: Successfully adopted in camera and handset applications Cumulative shipment over 1.5 M z Working with customers on developing new applications using Himax LCOS panels; anticipate a t c pate new e bus
Slide 24: Growth Opportunity #4 – Touch Panel Controller
Growth Opportunity pp y #4 – Touch Panel Controller z Successfully mass-produced and shipped our multi-touch capacitive touch controllers to a world leading smartphone brand leader in 2011 z Himax has been awarded with multiple new projects with that same customer in 2012 z With high product quality
Slide 25: Income Statement
Income Statement 1Q-2012 1Q-2011 Y2011 Y2010 For the Fiscal Period Ended USD'000 USD'000 USD'000 USD'000 Unaudited Unaudited Audited Audited Revenues from others, net $103,473 $74,093 $374,788 $304,068 Revenues from related parties, net 63,220 67,000 258,233 338,624 Revenues 166,693 141,093 633,021
Slide 26: Balance Sheet
Balance Sheet March 31, 2012 March 31, 2011 December 31, 2011 December 31, 2010 USD'000 USD 000 USD'000 USD 000 USD'000 USD 000 USD'000 USD 000 Unaudited Unaudited Audited Audited Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $102,081 $116,353 $106,329 $1
Slide 27: Summary Cash Flow
Summary y Cash Flow March 31, 2012 March 31, 2011 December 31, 2011 December 31, 2010 USD'000 USD'000 USD'000 USD'000 Unaudited Unaudited Audited Audited Net income $11,014 , $1,790 , $9,507 , $29,066 , Depreciation and amortization 3,313 3,279 12,795 13,626 Share-based compensation expenses 517
Slide 28: Management
Management g Dr. Biing-Seng Wu, Chairman of the Board - Previously Dr. Wu served as President, CEO and a director of Himax Taiwan. Dr. Wu has been active in the TFT-LCD panel i d t for industry f over 20 years and d is i a memberb off the th boards b d off the th Taiwan T i TFT LCD TFT-LCD Associati
Slide 29: Board of Directors
Board of Directors Biing-Seng Wu, Chairman 20+ y years in TFT-LCD industry y Founder of the company Dr. Chun-Yen Chang, Independent Di t Director Fellow, IEEE Dr. Yan-Kuin Su, Independent Director President,, Kun Shan Universityy Yuan-Chuan Horng, Independent Director Finance VP, China Steel Tien-Je
Slide 30: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO John Mattio, SVP +886-2-2370-3999 #22300 MZ Group jackie chang@himax com tw jackie_chang@himax.com.tw Main: +1-212-301-7130 Penny Lin, IR Manager Mobile: +1-203-297-3911 +886-2-2370-3999 #22320 john.mattio@hmzgroup.us penny_lin
Slide 31: Drive for better vision
—) Himax Drive for better vision