: HIMX Investor Presentation September, 2015
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 by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company's SEC filings, including those risks identified in the section entitled "Risk Factors" in its Form 20-F for the year ended December 31, 2014 filed with the SEC, as may be amended. 2
30 years of digital imagery expertise 1990’s 2000’s 2010’s and beyond… Chairman Wu establishes Himax to Founder B.S. Wu pioneers Himax leads LCOS Himax gains market share with design meet DDIC demand for large flat panel technologies at development and innovation of wins with leading technology products panels and fast-growing medium Chimei Electronics as CTO new display technologies.. companies, worldwide and small panels Himax Timeline 2009 2009 October 2004 September 2006 Global Financial Crisis reduces Himax forms Himax Himax Taiwan delists from June 2001 Himax sales from ~$900 June 2013 Display to focus on Emerging Stock Board, Himax Taiwan million to ~$600 million. Himax completes take changes name to Himax LCOS microdisplay formed by B.S. Company refocuses effort on out financing of Chimei technology technologies and prepares non-driver products for US IPO March 2006 Februar ary y 2007 2010 2010-2012 2012 July 2013 June 2003 3 Himax Taiwan Himax IPOs on Nasdaq. Himax acquired Wisepal, Non-driver sales Signs investment and forms Himax begins trading on Raises $50.0 M with increase gross agreement with Semiconductor to focus on margins and BOM Google Emerging Stock Morgan Stanley small to medium sized Board (TW) under sales opportunities 3 DDICs "3222"
Himax's TOP THREE driver I/C position and global Investment highlights reach Investment Highlights Leading Display Driver Provider 1 • Worldwide leading display driver player with a wide range of drivers portfolio for panels of all sizes and in- house intellectual property • Image technology solutions provider Diversifying Revenues and Customers 2 • Top tier customers globally • Diversifying revenues from DDIC to CMOS image sensors, LCOS microdisplay , touch panel controllers, timing controllers, power management IC, and ASIC service • DDIC market share leader 3 Strong Profitability and Favorable Return • Strong profitability with no fundraising since IPO • Disciplined cost control • High dividend payouts • Strong cash flow • Debt-free: Short-term debt offset by deposits of restricted cash reported under current assets Innovative New Products Capturing Growth Markets 4 • Automotive applications • New products benefit from strong growth of mobile products and advanced integrated solutions • Growth from non-driver products, including CMOS image sensors, LCOS microdisplay solutions, touch panel controllers and integrated touch and display ICs, timing controllers, wafer -level optics, array lens, and ASIC service 5 Visionary Management Team 4
Capital markets snapshot Summary Financials Fiscal Year December 31 st $ 7.25 Last-Traded Price (09/08/15) Basic Weighted Ave. Out. ADS 171.6M 172.2M Diluted Weighted Ave. Out. ADS 171.2M Equivalent ADS Out. Market Capitalization ~$ 1.25B (08/06/15) Insider Ownership* ~31.6% * Insider ownership includes executives and board members Top 20 Shareholders Covering Analysts Baillie Gifford & Co. Ltd BlackRock Investment (Value) Bank of America Merrill Lynch Dan Heyler Brean Capital, LLC Mike Burton Standard Life Investments Fidelity Chardan Capital Markets Jay Srivatsa Shannon River Capital California Public Employees Craig-Hallum Capital Group LLC Anthony J. Stoss Ignis Asset Management Susquehanna International Credit Suisse Jerry Su Renaissance Technologies UBS Wealth Management Edison Investment Research Limited Dan Scovel Lake Street Capital Markets Jaeson Schmidt Quentec Asset Management Granite Point Capita Nomura Securities Aaron Jeng Point72 Asset Management Kingdom Ridge Capital Northland Securities, Inc. Tom Sepenzis Fiera Capital C Bank of America - Merrill Lynch Oppenheimer & Co. Inc. Andrew Uerkwitz Topeka Capital Markets Suji De Silva Polar Capital Bell Rock Capital UBS Securities Pte. Ltd. Samson Hung BlackRock Investment (Growth) PEAK6 Investments Rosenblatt Securities Jun Zhang 5
Shareholder focused. Returns profits Dividends Share Buy Back • Distributed a total of $378 million of dividend since • Initiated four share buyback programs IPO (2015 payout in July) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5 million ADSs through June 30, 2015 profitability • Average purchase price per ADS: $3.15 • HIMX was added to Nasdaq Technology Dividend Index on March 17, 2014 $0.25 (US$ M) $0.063 Pay Out Ratio 119% 100 $0.25 $0.30 $0.30 100% $0.27 $0.12 $50M 83.3% $0.35 75% 77.5% 75% $50M $0.20 63.2% 80 61.4% 51.3% 60 $33M $25M 40 $67 $51 $46 $56 20 $42 $13M $44 $40 $21 $11 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2010 2011 Executed Share Buyback Unutilized Portion Total cash returned to shareholders including $524 Million dividend payment and share since IPO 6
Summary financials and guidance Summary Financials QUARTER 2Q2015 2Q2014 1Q2015 YoY QoQ Revenues $169.2M $196.4M $179.0M -13.9% -5.5% Gross Margin (%) 23.8% 24.2% 25.7% -0.4% -1.9% GAAP Net Income* $8.8M $24.1M** $12.6M -63.4% -29.7% GAAP Earnings per ADS $0.051 $0.140** $0.073 -63.4% -29.7% Non-GAAP Net Income* $9.3M $24.5M** $13.1M -61.8% -28.5% Non-GAAP Earnings per ADS $0.054 $0.142** $0.076 -61.8% -28.6% YEAR FY2014 FY2013 YoY $840.5M $770.7M +9.1% Revenues 24.5% 24.9% -0.4% Gross Margin (%) $66.6M $61.5M +8.3% GAAP Net Income** $0.387 $0.358 +8.2% GAAP Earnings per ADS $76.0M $71.0M +7.0% Non-GAAP Net Income $0.442 $0.414 +6.9% Non-GAAP Earnings per ADS 3Q2015 GUIDANCE Revenues To be down 5% to 9% as compared to the second quarter of 2015 Gross Margin To be down about 1.5% from the second quarter of 2015 GAAP Loss per diluted ADS 1.5 to 0.9 cents per diluted ADS Non-GAAP Earnings per diluted ADS 1.0 to 1.6 cents per diluted ADS * Q2 2014GAAP and Non-GAAP numbers include one-time investment gain of $8.5 million, or 5.0 cents. ** 2014 GAAP numbers include grant of Restricted Share Units at the end of September at $9.3 million 7
A global semiconductor company Beijing, Shanghai, Suzhou Fabless semiconductor company with • Ninbo, Fuqing Fuzhou world leading visual imaging processing Qingdao technologies Global market leader in TFT-LCD display • Irvine, CA driver and timing controller ICs Tainan, Taiwan Design Headquarters Investor Design 200+ customers across Taiwan, China, Cheonan • Relations Manufacturing Suwon Japan, Korea, U.S. and Europe Operations Sales Campbell, CA Sales/Marketing Technical Design Technical support Support 2,650 patents granted and 648 patents • Sales Technical pending approval worldwide as of June Support 30th, 2015 NASDAQ-listed since March 2006 (HIMX) • Over 1,800 employees worldwide; more • Headquarters than 90% are engineers Tainan, Taiwan Headquartered in Tainan, Taiwan with 5 • R&D centers in Taiwan and U.S., out of a total of 20 offices across Taiwan, China, Japan, Korea and U.S. 8 8
Corporate structure Main Operating Companies & Solutions : HIMX Himax Technologies, Inc. HIMAX TECHNOLOGIES, Ltd. HIMAX DISPLAY, Inc. a HIMAX IMAGING, Inc. • CMOS Image sensors • Driver, Tcon and P-Gamma OP • LCOS Modules for Head- Mounted Display, Head-up • Touch Controllers Display and Pico-projector • On-cell Touch Applications • Pure in-cell Touch (TDDI) • MEMS Microdisplays and • ASIC Service and IP Licensing Controller ICs • Power Management ICs • Wafer Level Optics and modules for CIS • Light guide • In-house Color Filter Fab for LCOS and CIS 9
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 LCOS TOUCH PANEL ASIC SERVICE & IP MICRODISPLAYS CONTROLLERS LICENSING Others ASIC and IP POWER MANAGEMENT IC TIMING CONTROLLERS Servicing and & LED DRIVERS licensing In Camera Modules CMOS Image Sensor Wafer Level Optics 10
Fabless manufacturing expertise Skilled Management of Complex Supply Chains DISPLAY DRIVER CMOS IMAGE SENSOR BACK-END WAFER FABRICATION PACKAGE CHIP PROBE TESTING GOLD BUMPING FT RW SOC CHIP PROBE TESTING PROCESSED TAPE PACKAGE CHIP PROBE TESTING ASSEMBLY AND TESTING FT 11
Product Lines & 6 Growth Opportunities 12
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