: HIMX Investor Presentation November, 2016
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, 2015 filed with the SEC, as may be amended. Images of devices depicted in this presentation may be representative of those in which Himax has specification, or for reference-only and may not be associated with actual bill-of-material or design-win in the displayed image. Any association of such, without a confirmed disclosure of such by the Company or the Company's customer are coincidental. Himax is under strict customer disclosure guidelines on the release of such information. 2
30 years of digital imagery expertise 1990’s 2000’s 2010’s and beyond… Chairman Wu establishes Himax to Himax gains market share with Himax leads LCOS development Founder B.S. Wu pioneers meet DDIC demand for large design wins with leading and innovation of new display flat panel technologies at panels and fast-growing medium technology products technologies with leading display Chimei Electronics as CTO and small panels companies, worldwide and optical expertise, Himax is uniquely positioned to benefit from the booming AR/VR sector CORPORATE TIMELINE March 2006 2006 2009 2009 June 2001 October 2004 June 2013 Sept 2015 Aug 2016 Himax IPOs on Nasdaq. GFC reduces sales ~$900 Himax Taiwan Forms Himax Himax completes AR business hits inflection Start expansion for Raises $147M with Display to focus million to ~$700 million. formed by take out financing point with pilot production next generation Morgan Stanley Refocuses effort on non-driver B.S. Wu on LCOS of Chimei shipment made to a major LCOS and WLO products microdisplay US customer production lines technology December 2003 August st 2005 Februar ary y 2007 2010 2010-2012 2012 July 2013 Jan - Jun 2016 Himax Taiwan Himax Taiwan Himax acquired Wisepal, and Non-driver sales Signs investment Mass production and begins trading on delists from forms Himax Semiconductor increase gross agreement with shipment of AR Emerging Stock Emerging Stock to focus on small and margins and BOM Google related LCOS and Board Board (TW) under medium sized DDICs sales opportunities 3 WLO, AMOLED DDIC, "3222" and in-cell TDDI
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 for panels of all sizes and in-house intellectual property • Image technology solutions provider 2 Diversifying Revenues and Customers • DDIC market share leader • 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 • LCOS & WLO product lines to improve corporate profit margin Operational and Public Market Performances 3 • Long term profitability potential with no fundraising since IPO • Disciplined cost control • Stable cash flow • Committed to high dividend payout ratio • Debt-free: Short-term debt offset by deposits of restricted cash reported under current assets 4 Innovative New Products Capturing Growth Markets • Automotive applications and AR/VR related businesses • Core driver IC business benefit from technology integration, AMOLED DDIC, TDDI and market leader position • Growth from non-driver products, such as LCOS microdisplay solutions and WLO, touch panel controllers and integrated touch and display ICs, CMOS image sensors, and timing controllers Visionary Management Team 5 4
Capital markets snapshot Summary Financials Fiscal Year December 31 st Last-Traded Price (11/09/16 ) $7.46 Basic Weighted Ave. Out. 172.3M ADS 172.4M Diluted Weighted Ave. Out. ADS 172.0M Equivalent ADS Out. Market Capitalization (11/09/16) $1.3B Insider Ownership* 31.5% * Insider ownership includes executives and board members Top 20 Institutional Shareholders* Covering Analysts Standard Life Investments (UK) JP Morgan Investment Management Brean Capital, LLC Mike Burton Craig-Hallum Capital Group LLC Anthony J. Stoss Baillie Gifford & Co. Ltd Millennium Management Credit Suisse Jerry Su Fidelity Management & Research (HK) UBS Financial Services Lake Street Capital Markets Jaeson Schmidt Prince Street Capital JP Morgan Asset Management (HK) Mizuho Securities Asia Ltd (New) Kevin Wang Wellington Management Company Shannon River Fund Management Morgan Stanley Charlie Chan Quentec Asset Management Columbus Circle Investors Nomura Securities Aaron Jeng Northland Securities, Inc. Tom Sepenzis Ignis Investment Service Polar Capital Oppenheimer & Co. Inc. Andrew Uerkwitz Hood River Capital Management Arrowstreet Capital Roth Capital Partners, LLC (New) Suji Desilva JF Asset Management Fiera Capital RW Baird & Co. Tristan Gerra Garelick Capital USAA Asset Management Company Bank of America Merrill Lynch Pending Rosenblatt Securities Jun Zhang* * Shareholder list as of June 30, 2016 *Analysts without models or regular contact with the Company 5
Shareholder focused. Returning profits Dividends Share Buy Back • Distributed a total of $400 million of dividend since • Initiated four share buyback programs IPO (2016 payout in August) totaling $158 million since 2007 • Dividends referenced primarily on prior year’s • Repurchased a total of 46.5 million ADSs profitability through September 30, 2016 at average purchase price per ADS: $3.15 $ Dividend $ $0.25 Payout Ratio (US$ M) 119.0% $0.063 $50M 100.0% $0.13 $0.25 $50M 89.0% $0.30 $0.27 $0.30 83.3% 77.5% $0.12 75.0% 75.0% $0.35 63.2% $0.20 61.4% 51.3% $33M $67 $25M $56 $51 $46 $44 $42 $40 $13M $22 $21 $11 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2010 2011 1.4% 4.0% 7.0% 10.4% 9.1% 5.9% 3.4% 4.4% 4.1% 4.8% Dividend Yield Executed Share Buyback Unutilized Portion EPS 0.57 0.40 0.21 0.19 0.06 0.30 0.36 0.39 0.15 $546 HIMX Returned to shareholders including dividends and buy-backs since IPO Million TDIV since 2014 6
Summary financials and guidance Summary Financials QUARTER 3Q2016 3Q2015 2Q2016 YoY QoQ Revenues $218.1M $165.6M $201.1M +31.7% +8.5% Gross Margin (%) 25.6% 21.8% 26.1% +3.8% -0.5% GAAP Net Income (Loss) $13.6M**** $(2.3)M $19.8M +683.1% -31.3% GAAP Earnings (Loss) per ADS $0.079**** $(0.014) $0.115 +681.7% -31.3% Non-GAAP Net Income $21.3M $1.7M $20.2M +1,167.5% +5.7% Non-GAAP Earnings per ADS $0.124 $0.010 $0.117 +1,164.4% +5.7% YEAR FY2015 FY2014 YoY $691.8M $840.5M -17.7% Revenues 23.6% 24.5% -0.9% Gross Margin (%) $25.2M* / ** $66.6M* / *** -62.2% GAAP Net Income $0.146* / ** $0.387* / *** -62.2% GAAP Earnings per ADS $30.6M** $76.0M*** -59.7% Non-GAAP Net Income $0.178** $0.442*** -59.7% Non-GAAP Earnings per ADS 4Q 2016 GUIDANCE Revenues To be down 4.0% to 9.0% sequentially, representing an 11.5% to 17.6% YoY growth Gross Margin To be slightly down sequentially, as compared to 22.9% reported in 4Q 2015 GAAP Earnings per diluted ADS 8.5 to 11.0 cents per diluted ADS, as compared to 3.6 cents reported in 4Q 2015 Non-GAAP Earnings per diluted ADS 8.7 to 11.2 cents per diluted ADS, as compared to 3.8 cents reported in 4Q 2015 * 2014 GAAP numbers include grant of Restricted Share Units at the end of September at $9.3 million * 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 $3.6 million in 15FY *** 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 $9.2 million 7
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