Slide 1: 2024 Q3 Earnings Updates
Drive for better vision : HIMX 2024 Q3 Earnings Updates
Slide 2: Earnings Call Presenters
Earnings Call Presenters Jordan Wu Jessica Pan Eric Li President and Chief Financial Officer Chief IR/PR Officer Chief Executive Officer 1
Slide 3: Forward Looking Statements
Forward Looking Statements Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the
Slide 4: Q3 Financial Summary
2024 Q3 Financial Summary Revenues & profits both surpassed guidance US$M 2024 Q3 Sales $250.0 GM in-line with guidance Stronger orders in auto, tablet & Tcon Non-Driver $200.0 $36.3 Revenues $222.4M Beat • -7.2% QoQ $150.0 • Guidance: decrease 12% to 17% QoQ SMDDIC GM 30.0% In-line $100.0 $155.4 •
Slide 5: Q3 Financial Summary by Segment
2024 Q3 Financial Summary by Segment LDDIC Revenue $30.7M • -21.2% QoQ • Weaker monitor and TV IC sales due to customers’ 2024 Q3 Sales Breakdown destocking following substantial Q2 replenishment SMDDIC Revenue $155.4M Beat • -2.2% QoQ (Guidance: Low Teens Decline) LDDIC 13.8% • Stronger-than-expect
Slide 6: Q3 Operating Expenses & Profits
2024 Q3 Operating Expenses & Profits Operating Expenses $60.8M Annual Employee Bonus • QoQ Up 28.4%: Primarily from expense for annual Compensation Unit: US$M employee bonus compensation awarded at end of 2024 2023 2022 September each year • YoY Decrease 4.7%: Due to lower amortized Q3 employee 13.9
Slide 7: Balance Sheet as of September 30, 2024
Balance Sheet as of September 30, 2024 Q3 Free Cash Balance Q3 Cash Balance Declined • Mainly due to $50.7M annual dividend payment $206.5M Q3 Operating Cash Outflow $3.1M Q3 Inventories • Compared to $26.9M inflow in Q2 • Primarily from employee bonus awards of $30.1M $192.5M • $27.0M cash inflow e
Slide 8: Q4 Guidance
2024 Q4 Guidance Revenues Flat to slightly down sequentially Gross Margin Flat to slightly up sequentially Net Profit 9.3 cents to 11.0 cents per diluted ADS 7
Slide 9: Q4 Outlook
2024 Q4 Outlook Macro environment remains challenging • Panel customers reduce production to stabilize panel prices • End brands are cautious in panel procurement, keeping low inventory levels Continued strict expense control and cost optimization through efficiency improvements & foundry/backend di
Slide 10: Q4 Outlook
2024 Q4 Outlook Significant fluctuations in auto market demands in recent quarters • Mainly driven by CN market, over 30% of global vehicle sales Greater challenges in handling rush orders for auto ICs, which have long production lead time Himax well-equipped to navigate market fluctuations, thanks
Slide 11: Q4 Outlook
2024 Q4 Outlook Decent progress in LPO/CPO in initial small-scale production of gen-1 solution Surging demand for our LPO/CPO technologies Himax and FOCI, along with top AI semi companies & foundry, are developing technologies & products for future generations Optical fiber LPO CPO Pluggable On subs
Slide 12: Q4 Outlook - LDDIC
2024 Q4 Outlook - LDDIC Q4 LDDIC sales to decrease double digit QoQ due to weak holiday demand, customer destocking, and intensified CN local competition • Panel manufacturers reducing production to protect prices • End brands enforcing procurement control and maintaining low inventory AI PC emergen
Slide 13: In-Cell Touch TDDI for LCD NB
In-Cell Touch TDDI for LCD NB Proprietary architecture with embedded touch controller inside TDDI • Leverages conventional DDIC configuration to maintain existing Tcon adoption • Multi-chip cascade and increased channel output for up to 4K and 16” screens • Enables compact PCB and narrow bezel, suit
Slide 14: OLED Solutions for NB
OLED Solutions for NB Pioneering on-cell touch controller, along with DDIC and Tcon for OLED NB • Multiple projects underway with top laptop leaders Developing next-gen eDP 1.5 display interface for Tcon • Applicable to LCD and OLED • Supporting high frame rates, low power panel replay, adaptive syn
Slide 15: Q4 Outlook - SMDDIC
2024 Q4 Outlook - SMDDIC Q4 SMDDIC sales to be flat QoQ Q4 auto IC sales to grow single digit QoQ • Car makers’ promotions in CN & government’s renewed trade-in stimulus FY24 auto driver IC sales to grow high-teens YoY • Significantly outperforming global auto growth • Driven by TDDI expansion Q4 au
Slide 16: Q4 Outlook - SMDDIC
2024 Q4 Outlook - SMDDIC Customers opt for Himax auto TDDI/LTDI with local dimming Tcon as standard development platforms Himax leads auto display IC market with broadest product coverage and leading market share New launch of auto TED solution • Combining TDDI with local dimming Tcon into a single
Slide 17: OLED Business Updates
OLED Business Updates Auto OLED • Strategic partnerships with key KR/CN/JP panel manufactures • Broad auto OLED offerings (DDIC/Tcon/Touch) • New touch standard of >45 dB SNR for glove-wearing/wet-finger operations • Touch IC MP in Q2; more revenue starting in 2025 Tablet and NB OLED • Comprehensive
Slide 18: Non-driver Business Updates
Non-driver Business Updates Q4 non-driver revenue to increase mid-teens QoQ Q4 Tcon sales to increase mid-teens QoQ • Driven by auto & one-time ASIC Tcon shipment to a leading projector customer Auto Tcon • Q4 sales to be up high-teens QoQ • FY24 YoY > 80%, nearly 4% of total sales • Dominant local
Slide 19: WiseEye Ultralow Power AI Sensing
WiseEyeTM Ultralow Power AI Sensing Cutting-edge endpoint AI integration WiseEyeTM • Ultralow power AI processor Drive for AI Everywhere • AoS CMOS image sensor • CNN based AI algorithm Catered to fast-changing AI landscape • On-device tinyML expertise • Single-digit mW ultralow power • Enables AI f
Slide 20: WiseEye Module Solution
WiseEyeTM Module Solution PnP WiseEye Modules Lower barriers for AI developers • Plug-and-play modules • Low-code / no-code AI development Low-Code / No-Code AI Progress across various domains • Smart parking 3 1 2 • Access control • Palm vein authentication Broad AI Use Cases • Smart offices • Smar
Slide 21: WiseEye PalmVein Authentication
WiseEyeTM PalmVein Authentication MP by year-end by a U.S. customer for WiseEyeTM PalmVein smart access control Collaborations with world-leading players underway • Door locks, access control, NB, auto Anticipate increasing sales contribution WiseEye module with proven palm vein across application
Slide 22: WLO for LPO/CPO
WLO for LPO/CPO Himax and FOCI LPO/CPO partnership (announced in June ‘24) • Optical communication for the most advanced Cutting-edge CPO Solutions multi-chip modules • Small-scale MP of first-gen LPO architecture • Development with FOCI and partners for more XPU sophisticated next-gen CPO architect
Slide 23: Drive for better vision
—) Hirmax Drive for better vision
Slide 24: Contact Us
Contact Us Company Eric Li, Chief IR/PR Officer Corporate Tel: +886-6-505-0880 Counsel hx_ir@himax.com.tw Karen Tiao, IR Relations SEC Legal Tel: +886-2-2370-3999 Counsel hx_ir@himax.com.tw Mark Schwalenberg, Director Auditor Investor Relations - US Representative MZ North America Tel: +1-312-261-64