Summary Financials, Guidance and Graphs Himax Technologies, Inc. (HIMX) is a fabless semiconductor solution provider dedicated to display imaging processing technologies. Himax is a worldwide market leader in display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices. Additionally, Himax designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration (TDDI) single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions, silicon IPs and LCOS micro-displays for augmented reality (AR) devices and head-up displays (HUD) for automotive. The Company also offers digital camera solutions, including CMOS image sensors and wafer level optics which are used in a wide variety of applications such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, medical devices and Internet of Things. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,100 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan and the US. Himax has 2,911 patents granted and 458 patents pending approval worldwide as of September 30th, 2016. Himax has retained its position as the leading display imaging processing semiconductor solution provider to consumer electronics brands worldwide. Investment Highlights Leading Display Driver Provider Diversifying Revenues and Customers Operational and Public Market Performances Innovative New Products Capturing Growth Markets Visionary Management Team SECTOR: Technology INDUSTRY: Semiconductors Himax Technologies, Inc. No.26, Zilian Road, Xinshi Dist. Tainan City 74148, Taiwan Tel: +(886) 6 505-0880 www.himax.com.tw Company Contacts Jackie Chang, CFO TW: +(886) 2 2370-3999 #22300 USA: +1 (949) 585-9835 #252 email: [email protected]Penny Lin, IR Manager TW: +(886) 2 2370-3999 #22320 email: [email protected]Investor Relations - US MZ Group North America Greg Falesnik, Managing Director Main: +1 (212) 301-7130 email: [email protected]www.mzgroup.us In Displays Display Driver TCON PMIC LED Driver P-gamma OP On Touch Panels Controller IC A SIC and IP Servicing and licensing In Camera Modules CMOS Image Sensor Wafer Level Optics Himax Inside Devices 2016 Growth Opportunities 1 Grow Large Panel DDIC Unit Sales and Market Share Himax share gain from continuously aggressive panel capacity expansion in China with a special focus on advanced display technologies, coupled with insourcing policy and more exports. 2 Grow S/M Panel DDIC & Launch New Products Korean, Japanese and Chinese smartphone customers seeking product differentiation with AMOLED panels. Market share leader in automotive DDIC market. Penetrating into Virtual Reality (VR) headsets using OLED displays. 3 LCOS Microdisplay Design, Manufacture, Ship AR product development for business, industrial, search, gaming, mobile, social media, military, toy, automotive, wearable and other consumer markets with companies providing the combination of R&D, joint development and manufacturing expertise. 4. Touch Panel Controllers Adoption of pure in-cell TDDI by panel makers and OEMs in Korea, China and Taiwan. 5. CMOS Image Sensors and WLO CIS accelerating in functionality and new applications and Advanced Wafer-Level Optics (WLO) is the future for AR devices, computational optics and 3D sensing. 6. Timing Controllers TCON becoming the key enabler of next generation ultra-high resolution panel development. QUARTER 3Q2016 3Q2015 2Q2016 Y-o-Y Q-o-Q FY2015 FY2014 Y-o-Y Revenues Gross Margin (%) GAAP Net Income GAAP Earnings per ADS Non-GAAP Net Income Non-GAAP Earnings per ADS $218.1M 25.6% $13.6M**** $0.079**** $21.3M $0.124 $165.6M 21.8% $(2.3)M $(0.014) $1.7M $0.010 $201.1M 26.1% $19.8M $0.115 $20.2M $0.117 +31.7% +3.8% +683.1% +681.7% +1,167.5% +1,164.4% +8.5% -0.5% -31.3% -31.3% +5.7% +5.7% $691.8M 23.6% $25.2M*/** $0.146*/** $30.6M** $0.178** $840.5M 24.5% $66.6M*/*** $0.387*/*** $76.0M*** $0.442*** -17.7% -0.9% -62.2% -62.2% -59.7% -59.7% 4Q 2016 GUIDANCE Revenues Gross Margin GAAP Earnings Per Diluted ADS Non GAAP Earnings Per Diluted ADS To be down 4.0% to 9.0% sequentially, representing an 11.5% to 17.6% YoY growth To be slightly down sequentially, as compared to 22.9% reported in 4Q 2015 8.5 to 10.0 cents per diluted ADS, as compared to 3.6 cents reported in 4Q 2015 8.7 to 11.2 cents per diluted ADS, as compared to 3.8 cents reported in 4Q 2015 SELECT FINANCIALS Fiscal Year End Dec. 31st Price (11/09/16) $7.46 Market Cap (11/09/16) $1.3 B 3 Month Ave. Daily Vol. ~3.4 M Basic Weighted Average Outstanding ADS 172.3 M Cash (09/30/16) $140.8 M 2015 Revenues $691.8 M 2015 GAAP Net Income* $25.2 M 2015 GAAP EPS $0.146 per ADS 2015 Annual Cash Dividend $0.13 per ADS Legal Davis Polk & Wardwell Auditor KPMG # Analyst Coverage 11 Revenues & Gross Margin % (US$M / %) OPEX and % of Total Sales (US$M / %) GAAP Net Income and EPS (US$M / %) In VR Devices OLED SOC In AR Devices LCOS WLO * 2014 GAAP numbers include grant of Restricted Share Units at the end of September at $9.3 million ** An additional income tax charge due to FX impact of $3.6 million in 15FY * 2015 GAAP numbers include grant of Restricted Share Units at the end of September at $4.5 million *** An additional income tax charge due to FX impact of $5.6 million in 14FY **** 2016 Q3 GAAP numbers include grant of Restricted Share Units at the end of September at approximately $9.2 million Shareholder list obtained through SEC Form 13-G filings. TOP 20 SHAREHOLDERS 1 Standard Life Investments 2 Baillie Gifford & Co. 3 Fidelity Management & Research 4 Prince Street Capital 5 Wellington Management Company 6 Quentec Asset Management 7 Ignis Investment Service 8 Hood River Capital 9 JF Asset Management 10 Garelick Capital 11 JP Morgan Investment Management 12 Millennium Management 13 UBS Financial Services 14 JP Morgan Asset Management 15 Shannon River Fund Management 16 Columbus Circle Investors 17 Polar Capital 18 Arrowstreet Capital 19 Fiera Capital 20 USAA Asset Management * 2015 GAAP numbers include grant of Restricted Share Units at the end of September at $4.5 million Better product mix lifts blended margin
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Summary Financials, Guidance and Graphs
Himax Technologies, Inc. (HIMX) is a fabless semiconductor solution provider
dedicated to display imaging processing technologies. Himax is a worldwide
market leader in display driver ICs and timing controllers used in TVs, laptops,
monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR)
devices and many other consumer electronics devices. Additionally, Himax designs
and provides controllers for touch sensor displays, in-cell Touch and Display Driver
Integration (TDDI) single-chip solutions, LED driver ICs, power management ICs,
scaler products for monitors and projectors, tailor-made video processing IC
solutions, silicon IPs and LCOS micro-displays for augmented reality (AR) devices
and head-up displays (HUD) for automotive. The Company also offers digital
camera solutions, including CMOS image sensors and wafer level optics which are
used in a wide variety of applications such as mobile phone, tablet, laptop, TV, PC
camera, automobile, security, medical devices and Internet of Things. Founded in
2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,100
people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country
offices in China, Korea, Japan and the US. Himax has 2,911 patents granted and 458
patents pending approval worldwide as of September 30th, 2016. Himax has
retained its position as the leading display imaging processing semiconductor
solution provider to consumer electronics brands worldwide.
Investment Highlights Leading Display Driver Provider
Diversifying Revenues and Customers Operational and Public Market Performances Innovative New Products Capturing Growth Markets Visionary Management Team
SECTOR: Technology
INDUSTRY: Semiconductors
Himax Technologies, Inc. No.26, Zilian Road, Xinshi Dist.
To be down 4.0% to 9.0% sequentially, representing an 11.5% to 17.6% YoY growth
To be slightly down sequentially, as compared to 22.9% reported in 4Q 2015
8.5 to 10.0 cents per diluted ADS, as compared to 3.6 cents reported in 4Q 2015
8.7 to 11.2 cents per diluted ADS, as compared to 3.8 cents reported in 4Q 2015
SELECT FINANCIALS
Fiscal Year End Dec. 31st
Price (11/09/16) $7.46
Market Cap (11/09/16) $1.3 B
3 Month Ave. Daily Vol. ~3.4 M
Basic Weighted Average Outstanding ADS
172.3 M
Cash (09/30/16) $140.8 M
2015 Revenues $691.8 M
2015 GAAP Net Income* $25.2 M
2015 GAAP EPS $0.146
per ADS
2015 Annual Cash Dividend
$0.13 per ADS
Legal Davis Polk &
Wardwell
Auditor KPMG
# Analyst Coverage 11
Revenues & Gross Margin % (US$M / %) OPEX and % of Total Sales (US$M / %) GAAP Net Income and EPS (US$M / %)
In VR Devices OLED SOC
In AR Devices LCOS WLO
* 2014 GAAP numbers include grant of Restricted Share Units at the end of September at $9.3 million ** An additional income tax charge due to FX impact of $3.6 million in 15FY * 2015 GAAP numbers include grant of Restricted Share Units at the end of September at $4.5 million *** An additional income tax charge due to FX impact of $5.6 million in 14FY **** 2016 Q3 GAAP numbers include grant of Restricted Share Units at the end of September at approximately $9.2 million
Shareholder list obtained through SEC Form 13-G filings.
TOP 20 SHAREHOLDERS 1 Standard Life Investments
2 Baillie Gifford & Co.
3 Fidelity Management & Research
4 Prince Street Capital
5 Wellington Management Company
6 Quentec Asset Management
7 Ignis Investment Service
8 Hood River Capital
9 JF Asset Management
10 Garelick Capital
11 JP Morgan Investment Management
12 Millennium Management
13 UBS Financial Services
14 JP Morgan Asset Management
15 Shannon River Fund Management
16 Columbus Circle Investors
17 Polar Capital
18 Arrowstreet Capital
19 Fiera Capital
20 USAA Asset Management
* 2015 GAAP numbers include grant of Restricted Share Units at the end of September at $4.5 million
Himax stands strong as OEMs actively seeking total solution providers for better performance, supply chain leverage, and more reliable engineering support
Increasing 4K penetration: more shipments to Chinese panel makers and penetrating into Korean customers
Leading the charge in new technology areas: 8K TV and OLED TV display
S/M Panel DDIC
Global and China smartphone market share leader as an
independent DDIC company
Global market share leader in tablet and automotive
applications
Capitalize on resolution migration and panel
technology advancement trend by working closely with leading
China panel makers and smartphone makers
Anticipate AMOLED DDICs to kick off a new growth cycle for
smartphone and VR applications, MP 4Q17
LCOS Microdisplay
The leader in microdisplay with patent protected technology, in-house facilities and shipping record >2M units
End applications include various glass type AR devices to toys, industrial helmets and head-up displays (HUD) for automotive and motorcyclists
Increasing design engagements with tier 1 customers on top of 30+ customers including some of the world’s biggest tech names
Continue close collaboration with Google and other major AR players
GM & OPM significantly higher than corporate average Started expansion plan for next generation production line
to enable higher end product design and offer better product quality
Touch Panel Controller
Rapid growth since 4Q11
On-cell solution: significant traction in customer
adoption and design wins
TDDI pure in-cell solution pioneer
Close partnerships with essentially all of the
leading panel manufacturers, module
houses, and OEMs
Expanding product portfolio with new TDDI
solutions in preparation for future growth
Another growth engine for Himax’s small
panel business starting early 2017: higher
GM to boost corporate GM over time
CMOS Image Sensors
One of the CIS market share leaders in notebooks
Competitive CIS high sensitivity, low noise, cost
effective, and low power consumption design with solid pixel
technologies
New smart sensor launch: ultra-low power computer vision
and Near Infrared (NIR) sensors for 3D sensing New territory with exciting growth potential
Applied in next-gen smartphone, tablets, AR/VR and IoT devices
WLO applications: wave-guide for AR devices, 3D scanning
when integrated with Diffractive Optical Element (DOE) and
bio-chips with some world’s biggest tech companies In-house know-how & manufacturing facilities and proven mass production
track record Mass production of wave-guide for AR devices since 1Q16 DOE integrated laser projector for mobile devices, automotive, AR/VR
devices and IoT applications WLO lens paired with ultra-low power computer vision CIS for mobile
devices, consumer electronics and IoT applications Started expansion plan for next generation production line to offer product
quality and lift capacity for mass production
Timing Controllers
Benefitting from the increasing demand from China due to
capacity expansion, in-sourcing and more export orders
UHD TV TCON takes the leading position in China market In-house RGBW technology help customers to reduce panel cost while
successfully maintaining the required display performance eDP TCON
widely adopted by high resolution tablet, NB and automotive
applications
Well-positioned in the trending 4K/8K display market for
the capability of providing a total solution consisting of
TCONs, PMICs and driver ICs
eDP TCON widely adopted by high resolution tablet, NB
and automotive applications Fully-covered eDP Technologies: 5.4G/lane, eDP1.4b and G-Sync for
high resolution applications
DISCLAIMER. This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument. The summary may include “forward-looking statements” with the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee
accuracy. This document has been furnished to you solely for your information. The information contained herein may not be reproduced, disclosed or redistributed, in whole or in part, by mail, facsimile, electronic or computer transmission or by any other means to
any other person, except with prior written consent of the Company. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.
Management Team
Core Product Lines - Strategies and Market Position
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 30 years. With 61 patents related to Flat Panel Display granted worldwide, Dr. Wu has made significant contributions to Taiwan panel industry including the completion and operation of Taiwan’s very first TFT-LCD plant, the winner of Outstanding Industry Contribution Award at the Gold Panel Awards 2009 from Ministry of Economic Affairs, etc. Dr. Wu holds a B.S. degree, an M.S. Degree and a Ph.D. Degree in Electrical Engineering from National Cheng Kung University. With well-recognized outstanding research and development capabilities, Dr. Wu received numerous awards including National Invention Award of Taiwan from Taiwan Executive Yuan in 1992, Research Achievement Awards from Industrial Technology Research Institute for consecutive two years in 1992 and 1993, ERSO Award from Pan Wen Yuan Foundation in 2008 and several other prestigious awards.
Jordan Wu, President, CEO and Director - Mr. Wu, co-founder of Himax, previously served as the Chairman of the Board of Himax Taiwan since April 2003. Prior to joining Himax Taiwan, he served as CEO of TV Plus Technologies, Inc. and CFO and Executive Director of DVN Holdings Ltd. in Hong Kong. Mr. Wu holds a B.S. degree in Mechanical Engineering from National Taiwan University and an M.B.A. degree from the University of Rochester.
Jackie Chang, Chief Financial Officer - Before joining Himax, Ms. Chang was the CFO of Castlink Corporation and VP of Finance and Operations for PlayHut, Inc. Prior to that, Ms. Chang was General Manager -Treasury Control for Nissan North America. She held several positions in Nissan North America during 1994 -2006 including finance, treasury planning, operations and accounting. She holds a BBA in Accounting from the National Chung-Hsing University in Taiwan and an MBA in Finance from Memphis State University.
