Slide 1: Investor Presentation November 2017
: HIMX Investor Presentation November, 2017
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 gains market share with Himax leads LCOS and WLO flat panel technologies at meet DDIC demand for large design wins with leading development and innovation of new Chi
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 for panels of all sizes and in-house intellectual property • Image technology solutions provider
Slide 5: Capital markets snapshot
Capital markets Summary snapshot Financials Fiscal Year December 31st Last-Traded Price (11/17/17) $11.54 Basic Weighted Ave. Out. ADS 172.4M Diluted Weighted Ave. Out. ADS 172.4M Equivalent ADS Out. 172.1M Market Capitalization (11/17/17) $1.99B Insider Ownership* 23.26% * Insider ownership include
Slide 6: Shareholder focused. Returning profits
Shareholder focused. Returning profits Dividends Share Buy Back • Distributed a total of $441 million of dividend • Initiated four share buyback programs since IPO (2017 payout in August) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5
Slide 7: Summary financials and guidance
Summary financials Summary Financialsand guidance QUARTER 3Q2017 3Q2016 2Q2017 YoY QoQ Revenues $197.1M $218.1M $151.7M -9.6% +29.9% Gross Margin (%) 25.5% 25.6% 23.8% -0.1% +1.7% GAAP Net Income (Loss) $3.7M**** $13.6M**** $(0.6)M -72.9% +685.7% GAAP Earnings (Loss) per ADS $0.021**** $0.079**** $(
Slide 8: A global semiconductor company
A global semiconductor company Beijing, Shanghai, Suzhou Fuzhou Ninbo, Foshan • Fabless semiconductor company with Wuhan, Shenzhen, Hefei, Tokyo world leading visual imaging processing Xiamen, Chongqing, Xian, Chengdu, FuQing Sales technologies Sales Design Technical Support Technical Support • Glob
Slide 9: Corporate structure
Corporate Main structure Operating Companies & Solutions : HIMX Himax Technologies, Inc. HIMAX TECHNOLOGIES, Ltd. HIMAX DISPLAY, a Inc. HIMAX IMAGING, Ltd. • TFT-LCD Driver and AMOLED Driver • LCOS Modules for Head- • CMOS Image sensors • TCON and P-Gamma OP Mounted Display, Head-up • Touch Controll
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 Others ASIC SERVICE & IP LCOS TOUCH PANEL LICENSING MICRODISPLAYS CONTROLLERS ASIC and IP Servicing and In Camera Modules l
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 2017 Q2 Driver Market Share HIMX TFT Driver IC Market Share by (1Q17 Market Share %) Application 2Q16 MediaTek 3Q16 3% Others 4Q16 MagnaChip 12% 1Q17 36.0% 35.6% 3% Samsung 2Q17 32.3% FocalTech 26% 29.6% 3Q17 (30%) 29.1% 28.6% 3% 23.3% 22.5% 22.6% 21.7% Raydium 19.8% 22.3% 22.0% 20
Slide 14: Grow large panel DDIC unit sales and market share
Grow large panel DDIC unit 1 Sales and market share Market Trends • Continuously aggressive new Gen 8 above TFT-LCD capacity expansion in China with a special focus on advanced display technologies • Leading Chinese panel maker’s shipment continue to rank world No. 1 in August 2017 and dominate in t
Slide 15: Grow S/M panel DDIC, launch new products
Grow S/M panel DDIC 2 Launch new products Market Trends • Demand for full-screen 18:9 display driver ICs remains solid Small Medium Display Area by Technology • Higher HD+ and FHD+ In-Cell TDDI penetration • Chinese panel makers have committed tremendous capital to build 9 brand new OLED fabs from n
Slide 16: WLO and CMOS image sensors
3 WLO CMOS andSensors Image CMOS image sensors Market Trends NIR Sensor + WLO & DOE Applications • Advanced wafer-level optics (WLO); one of the key technologies enabling 3D sensing • 3D sensing is among the most significant new features for next generation smartphone and tablet • 3D sensing; a game
Slide 17: LCOS Microdisplays
4 LCOS Microdisplays Market Trends • Heavy weight companies allocating major R&D resources and budgets to bring the new AR goggle products into the market Front Lit LCOS Advantages • Compact Form Factor • LCOS recognized as one of the technology choices for microdisplay in • Brightness AR devices •
Slide 18: Touch panel controllers
5 Touch Touch Panelpanel controllers Controllers Market Trends • Expect higher TDDI penetration in smartphones going forward and continue to accelerate • Full screen 18:9 aspect ratio displays becoming the trend HIMX Strategies and Market Position • TDDI pure in-cell solution Benefit from 18:9 dis
Slide 19: Timing controllers
6 Timing controllers TCON Market Trends Timing Controller Growth by Application • TCON becoming the key enabler of next generation ultra-high resolution panel development • Continuously aggressive new Gen 8.5 and Gen 10.5 TFT-LCD capacity expansion in China with a special focus on advanced display t
Slide 20: 2017 YTD Financial Review
2017 YTD Financial Review 20
Slide 21: Shipment and revenue history
Shipment and revenue history One of the Leading Semiconductor Companies Volume Revenues (unit, M) (US$ M) 1,516 $1,000 1,500 1,464 1,337 $918 1,400 1,297 1,309 $900 $833 $841 1,300 1,165 $803 1,152 1,156 $800 $771 1,200 $745 $737 1,100 1,069 $692 $692 $700 975 956 $643 $633 1,000 900 $600 $540 800 7
Slide 22: A better balanced product mix
A better balanced product mix…. • Global market share leader in small and medium-sized panel driver ICs • Increasing non-driver sales to diversify sales base and improve gross margin • Market leader in 3D sensing – Structured light 3D total solution modules will contribute very significant revenue a
Slide 23: and a diversified customer base
….and a diversified customer base Customer Mix Largely reduced dependence on one single customer, Innolux. • Diversifying product revenues by non-driver product wins and leveraging existing customers • Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Hi
Slide 24: Gross margin is a key business focus
Gross marginis a key business focus Gross margin Revenues & Gross Margin % Geographical Revenue Mix & Quarterly GM (US$M) (US$M) Better product mix lifts blended margin China Sales ROW Sales 30. 0% $1,4 00.0 GM 25.6% 24.5% 24.6% 24.5% 24.3% GM 26.1% 23.1% 23.6% 24.2% 25. 0% GM 25.7% GM 26.2% GM 19.1
Slide 25: The bottom line
The bottom line OPEX and % of Total Sales GAAP Net Income and EPS (US$M / %) 23.5% (US$M / US$) 19.1% $200 $250 $0.57 17.3% 17.2% 16.8% 15.5% 15.8% $0.39 14.2% 14.0% 15.2% $0.40 $0.30 $0.36 0.5 $0.30 10.7% $0.21 $0.19 $0.15 $200 $0.06 $0.026 $150 0 $143.9 $150 $133.2 $132.5 $135.1 $112.6 $117.5 $118
Slide 26: Performance history
Performance history Operating and R&D Expenses EBITDA (US$ M) (US$ M) $160 $120 $143.9 $135.1 $140 $133.2 $132.5 $100.6 $100 $117.5 $118.4 $90.1 $120 $56.3 $39.3 $108.9 $41.4 $103.5 $38.1 $79.5 $100 $98.3 $99.7 $30.2 $80 $76.4 $73.8 $37.1 $29.9 $32.6 $27.0 $23.3 $80 $57.5 $60 $49.1 $47.5 $60 $91.8 $
Slide 27: Reported financials – Income Statement
Reported financials – Income Statement September Income30,Statement 2017 US$’000 3Q-2017 3Q-2016 2Q-2017 Y2016 Y2015 For the Fiscal Period Ended (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) Revenues $197,146 $218,081 $151,730 $802,917 $691,789 Cost of revenues 146,778 162,348 115,556 608,
Slide 28: Reported financials – Balance Sheet
Reported financials – Balance Sheet September Balance30,Sheet 2017 US$’000 Balance Sheet September 30, 2017 (Unaudited) June 30, 2017 (Unaudited) September 30, 2016 (Unaudited) Assets Current Assets: Cash and cash equivalents $141,482 $177,206 $140,805 Investments in marketable securities available-
Slide 29: Reported financials – Cash Flow Statement
Reported financials – Cash Flow Statement September Summary30, 2017 of Cash Flow 3Q-2017 2Q-2017 2016FY 2015FY US$’000 (Unaudited) (Unaudited) (Audited) (Audited) Net income (loss) $3,130 ($983) $48,747 $21,462 Depreciation and amortization 4,672 3,471 13,756 14,164 Share-based compensation expenses
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 over
Slide 31: Contact us
Contact Contact us Jackie Chang, CFO Greg Falesnik Main: +886-2-2370-3999 #22300 US Investor Main: +1 (212) 301-7130 US Office: +1 (949) 585-9838 #252 Relations greg.falesnik@mzgroup.us jackie_chang@himax.com.tw http://www.mzgroup.us Company Ophelia Lin, IR Project Deputy Director Main: +886-2-2370-