Himax Technologies : Q3 Investor Presentation (3Q24 HIMX Investor Presentation Final)

Published: 2024-11-07 22:47:32 ET HIMX

Drive for better vision

: HIMX

November 2024 INVESTOR PRESENTATION

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 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; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations (EAR); 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, 2023 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.

Global Display and Imaging IC Design House

Leading IC Provider

US $1.2 Billion

40% Global Market Share

Listed on NASDAQ

Global top 10

2022 sales

Driver IC for

NASDAQ: HIMX

fabless IC design

avg. 60 million ICs

automotive displays

since 2006

company in 2021*

shipment per month

* Global top 10 IC design company revenue, 2021. Source: TrendForce,March 2022

Himax - Driver for Better Future

Automotive

AIoT

Optical product line-up/Metaverse

Recognized Industry Leader

Forthelast30years, wehave worked withleading OEMstodevelop themostrecognized imaging andhumaninterfacing technologies

1990s

2000s

2010s

2015and Beyond

Founder B.S. Wu pioneers flat panel

Chairman Wu establishes Himax to meet DDIC

Himax gains market share with design wins

Offer industry-leading WiseEye endpoint AI and optical solutions, including

technologies at Chimei Electronics as

demand for large panels and fast-growing medium &

with leading technology products companies

CMOS image sensors, LCoS microdisplays, 3D sensing, and WLO. WLO

CTO

small panels

worldwide

shipments for mainstream applications with North American OEMs, now

supporting LPO/CPO optical communication

Corporate Timeline

March 2021

Q2 2024

Q1 2024

September 2015

August 2016

WiseEye1 AIoT

Q1 2022

CES debut touch

Strategic

March 2006

June 2013

AR pilot

Started expansion

Q2 2020

Platform

Q1 2023

investment in

June 2001

Himax IPOs on

Himax completed

production

for next

H2 2018

WiseEye

received

WiseEye

CES debuted

for OLED auto &

FOCI for LPO/CPO

Himax Taiwan

Nasdaq. Raised

taking out

shipment made

generation LCoS

Smartphone TDDI

Solution

Microsoft Azure

features in

WiseEye2 AI

NB; In-cell TDDI

Collaboration

founded by

$147M with

financing of

to a major US

& WLO

ramped with

adopted by

IoT PnP

Dell's

Processor

for LCD NB

B.S. Wu

Morgan Stanley

Chimei

customer

production lines

OEMs

Google TFLM

Certification

Laptops

2001 ~ 2006

2013

2014

July 2013

October 2004

Signed

investment

Formed Himax Display

agreement

to focus on LCoS

with Google

microdisplay

technology

2015

2016

Volume shipment of AR related LCOS and

WLO, OLED DDIC, and in-cell

TDDI

2017

2018

2017

Qualcomm & Himax jointly announced structured light- based 3D depth sensing solution

2019

2020

2019

Industry-

first auto

2020

TDDI MP

Tablet TDDI

2021

2022

2023

2024

Q1 2022

H1 2022

Auto OLED IC

Showcase

Apr. 2024

Q2 2024

1Q22 ramp for EV

industry-

Q3 2023

Debuted

SID 2024

leading auto

World's first

WiseEye

exhibited

Q2 2022

local

LTDI mass

PalmVein

250K nits CS

OLED Tablet

dimming

production

FL LCoS

Tcon

Investment Highlights

Leading imaging and human interfacing technology innovator

Diversified base of customers and revenues

Operational and public market performances

Innovative new products capturing growth markets

Visionary management team

Himax on NASDAQ

Fiscal Year

December 31

Last-Traded Price (11/6/2024)

$5.95

Diluted Weighted Ave. Out. ADS

175.0M

Equivalent ADS Out

175.0M

Market Capitalization (11/6/2024)

$1.02B

Average Volume

0.70M

Insider Ownership*

24.4%

* Insider ownership includes executives and board members

Shareholder Type

Insider

November 6, 2024

Retail

24.4%

34.6%

Institutional

Hedge Fund

33.4%

3.9%

Mutual Fund

3.7%

Date: As of September 30, 2024

Source: https://www.nasdaq.com/symbol/himx/stock-chart

Analysts

Mizuho Securities Asia Ltd.

Kevin Wang

Nomura Securities

Donnie Teng

Baird Equity Research

Tristan Gerra

History of Dividend and Share Buyback

$1,004 HAS BEEN RETURNED TO SHAREHOLDERS INCLUDING DIVIDENDS AND SHARE BUYBACKS SINCE IPO

MILLION

Dividend Payout Ratio (%)

Total Payout (US$M)

Executed Share Buybacks from 2007-2024

119.0%

(US$M)

100.0%

89.0%81.4%

100.0%

$218

100.0%

Unutilized Portion

Executed Share Buyback

51.3%61.4%

75.0%

63.2%

83.3%

75.0%77.5%

61.7%

50.0%

35.4%

$50

$84

$67

$56

$33

$12

$40

$44

$42

$46

$51

$47

$51

$21

$11

$22

$41

$17

$13

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Dividend

2007

2008

2010

2011

per unit

0.20

0.35

0.30

0.25 0.12 0.06 0.25 0.27 0.30

0.13

0.24 0.10

0.00

0.27

1.25

0.48

0.29

EPS

0.57

0.40

0.21

0.19

0.06

0.30

0.36

0.39

0.15

0.30

0.16

0.15

(0.08)

0.27

2.50

1.36

0.29

Yield (%)

4.0

7.0

10.4

9.1

5.9

3.4

4.4

4.1

4.8

1.4

2.9

1.3

2.1

15.0

7.3

5.1

HimaxDividendandPolicy

◼ Distributed a total of $858 million of cash dividend since IPO

◼ Dividends referenced primarily on prior year's profitability and cash demand for future

growth

◼ Typically pays out annual cash dividend at approximately the middle of the current

calendar year, e.g., 2024 dividend payouts in July was for fiscal year 2023

◼ 2024 high dividend payout ratio (100%) is supported by our positive business outlook

and strong balance sheet. We are grateful for the support of our shareholders as we

strive to achieve business objectives and deliver sustainable long-term growth and

HimaxShareBuyback

Note: On 11/30/2018 & 12/3/2021 Himax chairman announced share purchase plans. Chairman Dr. Biing-Seng Wu intended to use his personal funds to purchase up to approximately $5 million and $10 million respectively of the Company's American Depositary Shares ("ADSs") in the open market, subject to market

profitability

conditions and other factors

Q3 2024 Summary and Q4 2024 Guidance

3Q2024

2Q2024

3Q2023

QoQ

YoY

Revenues

$222.4M

$239.6M

$238.5M

-7.2%

-6.8%

Gross Margin (%)

30.0%

32.0%

31.4%

-2.0%

-1.4%

Profit

$13.0M

$29.6M

$11.2M

-56.0%

+15.9%

Earnings per ADS

$0.074

$0.169

$0.064

-56.0%

+15.8%

2023

2022

YoY

Revenues

$945.4M

$1,201.3M

-21.3%

Gross Margin (%)

27.9%

40.5%

-12.6%

Profit

$50.6M

$237.0M

-78.6%

Earnings per ADS

$0.290

$1.356

-78.6%

4Q2024 Guidance

Revenues

Gross Margin (%)

Profit

Flat to slightly down sequentially

Flat to slightly up, depending on the final product mix

9.3 cents to 11.0 cents per diluted ADS

A Global Semiconductor Company

Irvine, CA

Design

San Jose, CA

Sales

Minneapolis, MN

Design, Manufacturing

Operations

Sales/Marketing

Detroit, MI

Technical Support

Asan, Bundang

Sales Design

Technical Support

Munich

Tokyo

Sales/Marketing

Sales

Technical

Beijing, Shanghai, Suzhou

Support

Fuzhou, Ninbo, Foshan,

Wuhan, Shenzhen, Hefei,

Xiamen, Chongqing, Xian,

Tainan, Taipei, and

Chengdu, Fuqing, Nanjing

Sales, Design,

Hsinchu in Taiwan

Headquarters

Technical Support

Design

Manufacturing

Operations

Sales/Marketing

Technical Support

Investor Relations

HEADQUARTERS

Tainan, Taiwan

Disclaimer

Himax Technologies Inc. published this content on November 08, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 08, 2024 at 03:45:18.170.