Himax Technologies, Inc. · NASDAQ:HIMX
Himax Technologies — Investor Presentation (November 2013)
27 slides from Himax Technologies's investor presentation, November 2013
Slide 1: Drive for better vision
Drive for better vision HIMX A fabless semiconductor solution provider dedicated for imaging processing technologies Investor Presentation November, 2013 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, 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
Slide 3: Investment Highlights
Investment Highlights g g 1 Leading Display Driver Provider z Worldwide leading display driver player with a wide range of drivers portfolio for panels of all sizes and in-house intellectual property 2 Diversifying Revenues and Customers z Top tier customers globally z Diversifying revenues from mob
Slide 4: Selected Financials
Selected Financials Fiscal Year December 31st Last-Traded Price (11/12/13) $9.15 Basic Weighted Ave. Out. ADS (2012) 170.5M Diluted Weighted Ave. Out. ADS (2012) 170.8M Equivalent ADS Out. (3Q2013) 170.5M Market Capitalization (11/12/13) ~$1.56B Insider Ownership* ~31.7% 3Q2013 3Q2012 2Q2013 YoY QoQ
Slide 5: Company Overview
Company p y Overview Overview z Fabless semiconductor p provider with world leading g visual imaging g g Headquarter: Tainan Tainan, Taiwan processing technologies z Global market leader in TFT-LCD display driver and timing controller ICs z Strong growth momentum in non-driver products z 200+ custom
Slide 6: Himax Operating Companies
Himax Operating p g Companies p Himax Technologies Ltd Himax Media Solutions, Inc. z Display Drivers and Tcon z ASIC Service and IP Licensing z Touch Controllers z Monitor and Projector Scalers z Wafer Level Optics and modules for z Infinity Color Technology CIS z 2D to 3D Conversion z In-house Colo
Slide 7: Himax's Products – Strength in Mobile Devices
Himax’s Products – Strength g in Mobile Devices CMOS Image Sensors Display Drivers Wafer Level Optics Timing Controllers (Tcon) Display Panel • Display Driver • Tcon Camera Module • PMIC • CMOS Image Sensor • LED Driver • Wafer Level Optics ASIC service & IP Licensing Touch Panel NAND & DRAM • Contr
Slide 8: Skilled Management of Complex Supply Chains
Skilled Management g of Complex p Supply pp y Chains Display Driver and CMOS Image Sensor Supply Chain Wafer Fabrication Gold Bumping / Packaging Processed Tape Chip Probe Testing Assembly and Testing / FT and RW 8
Slide 9: Himax's Global Footprint
Himax’s Global Footprint p Taiwan - Headquarters Tainan Headquarters Design Manufacturing Operations Sales/Marketingg Technical support Taipei Design Sales/Marketing pp Technical support Investor Relations Hsinchu Design Sales/Marketing Technical support U.S. China Japan Korea Irvine Beijing Ninbo S
Slide 10: Shipment and Revenue Track Record
Shipment p and Revenue Track Record Consistent shipment growth Strong revenue rebound Volume Revenues (unit, M) (US$ M) * 959 * 547 * 9M2012 actual results 10
Slide 11: Improved Margin and Profitability
Improved p Margin g and Profitability y Gross Margin Revenues OPEX and % of Total Sales GAAP Net Income and EPS (%) (US$ M) (US$ M) (US$ M) (%) z 2011 4Q marks the inflection point for z Successful transformation z Disciplined OPEX control z 2012 EPS surged 3.9 times gross margin expansion in 2012 t
Slide 12: Quarterly Financial Performance
Quarterly y Financial Performance (US$ M) Revenues Gross Margin $207.0 $189.5 $190.4 $190.6 $192.8 $169.2 $166.7 $ $175.7 $160.6 $162.1 $162 1 $166 7 Non-Driver $141.1 S/M Large z Successfully embarked on business transformation in 4Q11 z 3Q13 GM is the highest GM level since 3Q08 z 2Q13 revenues we
Slide 13: More Balanced Product Mix
More Balanced Product Mix z Fast g growing g small and medium-sized panel driver business z Increasing non-driver sales to diversify sales base and improve gross margin z Moving away from low-margin feature phones Revenues (US$ M) $918 $833 $692 $643 $633 $737 $193 100% 2.60% 5.1% 6.7% 8.2% 12.7% 14
Slide 14: Customer Mix
Customer Mix Largely reduced dependence on one single customer: z Diversifying product revenues by non-driver product wins and leveraging existing customers z Non-Innolux revenues increased 29.5% YoY in 2012 and 23.0% YoY in 9M13 z Innolux disposed of its entire equity holding in Himax on June 19th,
Slide 15: Cash Dividend and Share Buyback
Cash Dividend and Share Buyback y Cash Dividend Share Buyback z Distributed a total of $281 million of dividend since IPO z Initiated four share buyback programs totaling $158 z Committed to paying annual dividends referenced million since 2007 primarily on prior year’s profitability z Repurchased a
Slide 16: Leading Display Driver Provider
Leading g Display p y Driver Provider 2013 Q2 Display Driver Market Share Growing Market Share of HIMX Small/ M di Medium-sized i d Panel P l Driver Di b Application by A li ti 31.9% 25.8% 25.9% 23.4% 17.8% 18.2% Smartphone Tablet Auto 3Q12 3Q13 z One of the leading players in display driver ICs z S
Slide 17: Growth Opportunity #1 – Mobile Display Drivers
Growth Opportunity pp y #1 – Mobile Display p y Drivers Display Trends for Smartphone Display Trends for Tablet z Leadinggpposition to be solidified due to higher g 1080 2160 resolution migration trend FHD 4K2K 720 HD720 z Panel makers are direct customer but need 640 2VGA (iphone4) 1600 to work clo
Slide 18: Growth Opportunity #2 – CMOS Image Sensors
Growth Opportunity pp y #2 – CMOS Image g Sensors z Premium quality CMOS image sensor products to Resolution Trend by CMOS Image Sensor2 (Unit: Mps) capture the US $11 $11.3B1 3B1 market (2016): 12 15 CAGR 12-15 High sensitivity, low noise, and low power consumption 13.8% design in highly integrat
Slide 19: Growth Opportunity #3 – LCOS Micro Display
Growth Opportunity pp y #3 – LCOS Micro Display p y z Proprietary LCOS microdisplay solutions: z Primary product focus is Head-Mounted Display Market leader of the LCOS industry (HMD) Successfully adopted in camera and handset New design wins, started early stage pilot applications shipments s
Slide 20: Growth Opportunity #4 – Touch Panel Controller
Growth Opportunity pp y #4 – Touch Panel Controller z Sales tripled in 2012 due to increased share of sales to leading smartphone brand customer and new shipments to China handset players z Expanding product offerings to cover larger panels for tablet applications, targeting both international and C
Slide 21: Income Statement
Income Statement (US$’000) 3Q-2013 3Q-2012 2Q-2013 FY2012 FY2011 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues from others, net $192,814 $125,671 $164,421 $485,281 $374,788 Revenues from related parties, net * 0 64,742 42,536 251,974 258,233 Revenues 19
Slide 22: Balance Sheet
Balance Sheet Sept 30, 2013 Sept 30,2012 December 31, 2012 (US$’000) (Unaudited) (Unaudited) (Audited) Assets Current Assets: Cash, cash equivalents and marketable securities available-for-sale $133,879 $88,993 $138,909 Restricted cash equivalents and marketable securities 115,000 73,000 74,100 Acco
Slide 23: Summary Cash Flow
Summary y Cash Flow 3Q-2013 3Q-2012 9M-2013 FY2012 FY2011 (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) ((US$’000) $ ) Net income $10,896 $10,164 $41,548 $50,138 $9,507 Depreciation and amortization 3,757 3,152 10,466 13,299 12,795 Share-based compensation expenses 578 451 1,484 1,936 4,19
Slide 24: Management
Management g 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
Slide 25: Board of Directors
Board of Directors Position Name Title Chairman Dr. Biing-Seng g g Wu Founder of the Company p y Director Jordan Wu President and CEO, Himax Technologies, Inc. Independend Director Dr. Dr Yan-Kuin Yan Kuin Su President Kun Shan University President, Independend Director Dr. Hsiung-Ku Chen Consultant
Slide 26: Contact Information
Contact Information Company Contact Investor Relations Jackie Chang, CFO John Mattio, SVP 886 2 2370 3999 #22300 +886-2-2370-3999 MZ Group +1-949-585-9838 #252 Main: +1-212-301-7130 jackie_chang@himax.com.tw Mobile: +1-203-297-3911 Penny Lin, IR Director john.mattio@mzgroup.us +886-2-2370-3999 #2232
Slide 27: Drive for better vision
—) Hirmax Drive for better vision
Himax Technologies — Investor Presentation (November 2013) on 6ix