#124 10020 OS Kevi 8888 8.88 Himax Human Interface and Display Technologies Nasdaq: HIM X February 2019 INVESTOR PRESENTATION max#2Forward Looking Statements Himax 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, 2018 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#3Recognized Industry Leader Himax For the last 30 years, we have worked with leading OEMs to develop and the most recognized imaging and human interfacing technologies. 1990s Founder B.S. Wu pioneers flat panel technologies at Chimei Electronics as CTO 2000s Chairman Wu establishes Himax to meet DDIC demand for large panels and fast- growing medium and small panels 2010s Himax gains market share with design wins with leading technology products companies, worldwide 2018 and Beyond Himax leads WLO shipment and development with North American OEM customer, 3D sensing for Android. LCOS advancements for AR & HUD, CMOS for Notebook, and WLO integration keep Himax at the forefront of AR/VR product design and pending product releases. Corporate Timeline June 2001 Himax Taiwan formed by B.S. Wu October 2004 Forms Himax Display to focus on LCOS microdisplay technology March 2006 Himax IPOs on Nasdaq. Raises $147M with Morgan Stanley 9:09 September 2015 US customer August 2016 Start expansion for next generation LCOS and WLO production lines 2H2018 Industry first ASC 3D sensing reference design with MediaTek and Megvii. TDDI ramp with smartphone OEMs. WLO shipment 2020 Expect strong growth from all products include LDDIC, TDDI for Smartphone and Tablets, Auto, 3D sensing and CMOS, start OLED product shipment 2009 GFC reduces sales -$900 million to ~$700 million. Refocuses effort on non-driver products June 2013 Himax completes take out financing of Chimei AR business hits inflection point with pilot production shipment made to a major 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 August 2005 December 2003 Himax Taiwan begins trading on Emerging Stock Board (TW) under "3222" Himax Taiwan delists from Emerging Stock Board February 2007 Himax acquired Wisepal, and forms Himax Semiconductor to focus on small and medium sized DDICS 2010 2012 Non-driver sales increase gross margins and BOM sales opportunities - 2016 2017 July 2013 Signs investment agreement with Google Mass production and shipment of AR related LCOS and WLO, AMOLED DDIC, and in-cell TDDI Qualcomm and Himax jointly announced structured light-based 3D depth sensing solution 2019 TDDI for smartphone and WLO are the growth driver 3#4Investment Highlights Leading Imaging and Human Interfacing Technology Innovator ■ Global display driver player with a wide range of display technologies for panels of all sizes ■ Thousands of patents for Himax's IP and designs ◉ Imaging technology and human interfacing total-solution provider Himax Diversified Base of Customers and Revenues ■DDIC market share leader ■ Penetration throughout all display market segments and with a leading position in several segments, including automotive ■ Revenues from traditional large and small/medium now diversified to TDDI, OLED, WLO/CIS and LCOS microdisplays ■ Top-tier partnerships with major U.S. and Asian AP platform providers, device makers, and the world's biggest tech names ■ Non-driver product lines expected to improve corporate profit margin and further diversify customer base Operational and Public Market Performances ◉ Long-term profitability potential with no fundraising since IPO ■ Focus on delivering P&L improvement by executing on the technologies Himax already developed for both driver IC and non- Driver IC areas ■ Committed to high dividend payout ratio Innovative New Products Capturing Growth Markets ☐ Integration of AMOLED and TDDI technologies fuel growth for core, display driver ICs ■ Himax's WLO, CMOS & 3D image sensors, LCOS microdisplay's leading specs and continued design wins position us at the forefront of new WLO, 3D sensing, Structured Light, & ToF, AR/VR, IoT, Automotive LIDAR, HUD, Medical Devices, Robotics development and future product releases. Visionary Management Team 4#5Himax on NASDAQ HIMX Nasdaq Listed 1 Year Himax 12 Month Trading Chart 01/13/20 $4.50 Fiscal Year December 31 Last-Traded Price (01/13/20) $3.95 Basic and Diluted Weighted Ave. Out. ADS 172.6M Equivalent ADS Out 172.2M 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 Market Capitalization (01/13/20) $681.8M 1.75 50-Day Avg. Daily Volume (01/13/20) 1.34M February lutarch April Itay June July August September October Insider Ownership* 24.4% Volume November December 2020 EDGAROnline 8.23 M 6.86 * Insider ownership includes executives and board members 5.49 Shareholder Type 4.11 2.74 1.37 February March April May June July August September October November December 2020 (3Q19) <4Q18> Insider 24.4% (23.4%) Retail 62.8% <23%> (61.8%) <51%> Source: www.nasdaq.com Institution 7.5% Credit Suisse Lake Street Capital Markets Mizuho Securities Asia Ltd Nomura Securities Northland Securities, Inc. (9.3%) <10%> Mutual Fund Hedge Fund 1.6% 3.7% (1.6%) (3.8%) <5%> Date: As of December, 31 2019 <11%> Roth Capital Partners, LLC Analysts Jerry Su Jaeson Schmidt Kevin Wang Donnie Teng Tim Savageaux Suji Desilva 5#6Shareholder-Focused, Returning Profits Himax Dividend and Policy ■ Distributed a total of $458 million of cash dividend since IPO Typically pays out annual cash dividend at approximately the middle of the current calendar year based on prior year's profitability, e.g., 2018 dividend payouts in July is for fiscal year 2017. ■ In 2019, Himax did not pay an annual cash dividend for fiscal year 2018. The ☐ decision was made with full consideration of Himax's 2019 operations and capital requirement to support its future growth and to drive gains in market share. Company is committed to pay annual cash dividend Dividend Payout Ratio Dividend Per Unit (in USD) Total Payout (in millions USD) Himax Share Buyback Himax ■ Initiated four share buyback programs totaling $158 million since 2007 ■ Repurchased a total of 46.5 million ADSS through June 30, 2019 at average purchase price per ADS: $3.15 Executed Share Buybacks from 2007-2019 (in millions USD) ■Executed Share Buyback ■Unutilized Portion 119.0% 100.0% 89.0% 75.0% 83.3% 75.0% 77.5% 81.4% 61.4% 61.7% 51.3% 63.2% $0.35 $0.30 $0.30 $0.27 $0.24 NA $0.20 $0.25 $67 $0.25 $0.13 $56 $0.12 $51 $44 $46 $40 $42 $0.06 $21 $11 $0.10 $41 $22 $17 NA $50M $50M Il $33M $12M $13M 2007 2008 2010 2011 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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% EPS 0.57 0.40 0.21 0.19 0.06 0.30 0.36 0.39 0.15 0.30 0.16 0.05 $604 HAS BEEN RETURNED TO SHAREHOLDERS INCLUDING MILLION DIVIDENDS AND SHARE BUY BACKS SINCE IPO * On 11/30/2018 Himax chairman announced share purchase plan. Chairman Dr. Biing-Seng Wu intends to use his personal funds to purchase up to approximately $5 million of the Company's American Depositary Shares ("ADSS") in the open market, subject to market conditions and other factors. 6#7Summary and Guidance Himax 3Q2019 2Q2019 302018 ΥΟΥ QoQ Revenues $164.3M $169.3M $188.4M -12.8% -3.0% Gross Margin (%) IFRS Profit (Loss) 19.5% 19.5% 23.4% -3.9% 0% ($7.2M) ($5.2M) $0.9M -907.6% -39.4% IFRS Profit (Loss) per ADS ($0.042) ($0.030) $0.005 -907.6% -39.4% Non-IFRS Profit (Loss) ($6.9M) ($4.8M) $4.5M -254.3% -44.0% Non-IFRS Profit (Loss) per ADS ($0.040) ($0.028) $0.026 -254.3% -44.1% 3Q19YTD 3Q18YTD YoY FOR THE FULL YEAR 2018 Revenues $496.9M $532.6M -6.7% $723.6M Gross Margin (%) 20.5% 23.0% -2.5% 23.30% IFRS Profit (Loss) ($14.7M) $0.1M -13920.8% $8.6M IFRS Profit (Loss) per ADS ($0.085) $0.001 -13919.5% $0.05 Non-IFRS Profit (Loss) ($13.6M) $4.2M -425.0% $12.9M Non-IFRS Profit (Loss) per ADS ($0.079) $0.024 -425.0% 0.075 4019 Pre-Announcement (01/07/2020) VS Revenues An increase of 6.5% sequentially Gross Margin (%) 20.6% IFRS Profit (Loss) per ADS 0.3 to 0.6 cents per diluted ADS* Non-IFRS Profit (Loss) per ADS 0.6 to 0.9 cents per diluted ADS* 4Q19 Guidance Approximately flat sequentially A slight increase from third quarter's 19.5% Around (3.0) to (4.5) cents per diluted ADS Around (2.7) to (4.2) cents per diluted ADS * The better-than-expected earnings include a revaluation gain of $3.8 million, or 2.2 cents per diluted ADS, from an investment in an Al related startup made during November of 2017. The revaluation gain was not included in the November guidance. 7#8A Global Semiconductor Company Himax ☐ ☐ ☐ ☐ ☐ Fabless semiconductor company with world leading visual imaging processing technologies Global market leader in TFT-LCD display driver and timing controller ICs 200+ customers across Taiwan, China, Japan, Korea, U.S. and Europe 2,922 patents granted and 575 patents pending approval worldwide as of December 31, 2019 NASDAQ-listed since March 2006 (HIMX) Around 2,000 employees worldwide; more than 90% are engineers Headquartered in Tainan, Taiwan with 9 R&D centers in Taiwan, China, Korea, Israel and U.S., out of a total of 24 offices across Taiwan, China, Japan, Korea, Israel and U.S. Irvine, CA Design Investor Relations Campbell, CA Sales Minneapolis Design, Manufacturing Operations Sales/Marketing Himax's Global Reach Givatayim Design, Sales Beijing, Shanghai, Suzhou Fuzhou Ninbo, Foshan Wuhan, Shenzhen, Hefei, Xiamen, Chongqing, Xian, Chengdu, Fuqing Sales, Design, Technical Support Himax Asan, Bundang Sales Design Technical Support Tainan, Taipei, and Hsinchu in Taiwan Headquarters Design Manufacturing Operations Sales/Marketing Technical support Tokyo Sales Technical, Support HEADQUARTERS Tainan, Taiwan 8#9Corporate Structure Nasdaq Listed Himax Technologies, Inc. Himax Technologies, LTD. TFT-LCD Driver, EPD Driver, Micro LED Driver and ☐ AMOLED Driver ◉ TCON and Bridge IC ■ Touch Controllers ☐ Pure in-cell Touch (TDDI) ■ ■ ◉ ◉ ASIC Service and IP Licensing Power Management ICs, P- Gamma OP, Level Shifter and LED Driver Wafer Level Optics and 3D sensing modules Light guide In-house Color Filter Fab for LCOS and CIS Himax Display, Inc. LCOS Modules for Head- Mounted Display, Head-up Display and Pico-projector Applications Phase Modulation for Communication and Holographic Displays ■ Himax Himax Imaging, LTD. CMOS Image sensors#1010:45 11:30 Himax Our Technologies Are Used by Consumer Brands Worldwide Himax SAMSUNG LG Display lenovo HUAWEI орро וח Google 10#11Display Driver IC (DDIC) Nobel Himax We are a leader in display driver ICs used to enable flat panel display in TFT and Touch in large, small and medium-sized display panels MARKETS WE SERVE Smartphones, Tablets, Monitors, Notebooks, TVs, Automotive Gaming, Education, Healthcare plus 100's more applications for markets and business that use all types of flat panel displays. In what devices can you find Himax DDIC technologies Who uses Himax DDICS SAMSUNG BOE SHARP Panasonic CSOT INNOLUX 群創光電 VIVO CEC CHOT HKC 惠科股份 KYOCERA 中国电子 0.25 Aber market 70° Good morning 6:30 AM 00:00 TRULY® MEIZU lenovo Eink TCL וח TECNO AUO IVO R SHANGHAI TIANMA MICRO-ELECTRONICS CO., LTD. JDI □ ZTE中兴 TOPPAN HannStar+ LG Display amazon Japan Display Inc. HUAWEI oppo AVIC CEC COELE CHELA ELECTROINES 11#12Our DDIC Market Share Himax 2019 Q3 Driver Market Share (2019 Market Share %, Revenue) MediaTek Fitpower Solomon ROHM 3% 2% 1% 1% Galaxy Core FocalTech 1% Others 3% 3% MagnaChip 5% Raydium 5% (4%) Samsung 31% (29%) Synaptics 6% Sitronix Silicon Works 4% Novatek 19% Himax (20%) 9% (10%) 7% (8%) We have the ability to provide a complete solution of image processing technologies and leverage our expertise in mobile devices and other mass-market technology releases Large display driver IC business continue to benefit from Chinese panel customers' capacity expansion as well as Korean fab restructuring Strong market share in fastest moving consumer devices including auto application, the company expect further growth into 2020 Major TDDI design-wins and shipments for smartphones, tablets, and automotive in 2019 accelerating into 2020 The company expects AMOLED DDIC shipment for TV, smartphone, automotive and wearable in 2020 Source: IHS iSupply and company estimates (This covers TFT-LCD and OLED DDICS) HIMX's Strong Driver IC Market Share in Mass Market Devices 3Q18 ■4Q18 1Q19 (Shipment) ■2Q19 3Q19 ■4Q19 27.4% 27.3% 24.4% 24.0% 25.1% 25.2% 22.6% 23.1% 20.1% 20.4% 21.9% 22.0% 13.5% 13.7% 14.9% 12.7% 10.7% 11.7% 11.7% 10.7% 8.5% 7.9% 6.9% 7.9% Large Panel Source: IHS iSupply 2019 Q3 data, IDC and Company Estimates (This covers TFT-LCD DDICs) Smartphone Tablet Auto 12#13TDDI Technologies סככוס oppo 01:10 ◉ Himax We design technologies for touch sensor displays including in-cell touch and the fast-growing segment of Display Driver Integration (TDDI) single-chips MARKETS WE SERVE Beginning with smartphones, started to expand to tablet, laptops, automotive, and many other consumer electronic devices late 2019 ☐ Limited smartphone business growth in 2019. Company expect robust growth in 2020 and beyond due to major addition of TDDI capacity, new products and shipment to new customers. Higher penetration of TDDI is refreshing smartphone life cycle starting end of 2016, major growth driver for 2019 and beyond New In-cell TDDI is refreshing tablet life cycle starting end of 2019, expect strong growth for 2020 and beyond, Himax is the primary or sole source for non-iOS tablet tier-1 customers Higher ASP & higher margin versus traditional discrete driver ICs Product mix will enhance corporate gross margin In what devices can you find Himax TDDI technologies 03:00 A-Si HD+ Smartphone 1008 8:00 LTPS FHD+ and HD+ Smartphone yoga 8" and Large-sized Tablets, In-cell TDDI Tablet PC & Smart Speaker Who uses Himax Touch and TDDI Technologies htc TECNO HUAWEI ASUS NEC COMPAL LONGCHEER MA oppo 13#14WLO and CIS Himax We offer industry leading WLO design know-how and mass production expertise for 3D sensing solutions which cover structured light, and ToF. Our CMOS image sensors include near infrared (NIR) sensors for 3D sensing and ultra-low power computer vision, Always- on-Sensor (AoSTM), and customized sensors for optical finger print solutions Wafer Level Optics (WLO) Integrated Optics High Accuracy Scalability In Production MARKETS WE SERVE Best For IoT/Smart Sensing Eye Tracking & Gesture Control 3D Depth Sensing Waveguide for AR Key technology to enable holographic imaging for AR goggle devices Smartphones, Consumer Electronics, Tablet, TV, Entertainment, Automotive, IoT, Gaming, Education, Healthcare plus many more.. • Strong growth in 2019, accelerating new design activities in both front and world facing 3D sensing for smartphone projects. Expect growth to continue into 2020 and beyond Who uses Himax WLO and CMOS technologies Panasonic NEC HUAWEI SONY SUS hp Chicony FOXCONN Logitech. LITEONIⓇ JVCKENWOOD TRULYⓇ lenovo acer LG Innotek LED DELL SAMSUNG Quanta Computer 14#15E LCOS Microdisplays 60 500m 19 Himax We are the leader and long-term innovator of Liquid Crystal on Silicon (LCOS) displays and the only company capable of high-volume production runs of LCOS displays for the launch of mass-market devices. Our Front Lit LCOS Technology Advantages Compact Form Factor Brightness Power Efficiency 60 . MP Efficiency & Readiness • Contains lightguide performance enabling OEM to simplify light guide design Lower cost MARKETS WE SERVE Industrial, Consumer, Shopping, Search, Gaming, Sports, AR/VR smart glasses, Automotive Heads Up Displays, Tier-1 OEM's market leading AR Glasses Who uses Himax LCOS micro display technologies Optinuent Google lenovo SAMSUNG LUMUS 15#16Our Customers DISPLAY DRIVERS SAMSUNG 群創光電 INNOLUX BOE lenovo SHARP Panasonic TRULY® LG Display 47 HUAWEI 华星光电 JDI CSOT AUO Eink KYOCERA TCL TECNO Vivo 上海本馬微黑子有限公司. ZTE中兴 HKC惠科股份 SHANGHAITIANMA MICRO-ELECTRONICS CO., LTD. Japan Display Inc. MEIZU Oppo IVO CEC CEC DEE7 中国电子 CHOT MI HannStar+ CHILA ELECTRONICS TOPPAN WAFER LEVEL OPTICS SONY FOXCONN HUAWEI Others ASIC SERVICE & IP LICENSNING amazon CMOS IMAGE SENSORS lenovo JVCKENWOOD ASUS E e Logitech Quanta Computer DELL TRULY Chicony Panasonic NEC LCOS MICRODISPLAYS AVIC hp acer LG Innotek LED LITEONIⓇ Himax We are In Displays Display Driver TCON PMIC LED Driver On Touch Panels Controller IC P-gamma OP Microsoft SHARP PHILIPS EPSON EXCEED YOUR VISION SONY 四川虹 TCL 微技术 LG Display AUO lenovo LUMUS Google Optinuent Other SAMSUNG 30+ FOXCONN HUAWEI SAMSUNG TOUCH PANEL CONTROLLERS SAMSUNG орро MEIZU motorola a Lenovo company nuolo TECNO LG LG HO HUAQIN NOKIA 华勤通讯 HUAWEI WINGTECH TIMING CONTROLLERS HKC 惠科股份 CEC 中国电子 | CHOT 华星光电 CSOT POWER MANAGEMENT IC & LED DRIVERS INNOLUX BOE L 群創光電 JDI Japan Display Inc. LITEONI® FUNAI 一 华星光电 C50T SHARP 上海天馬微電子有限公司 SHANGHAITIANMA MICRO-ELECTRONICS CO., LTD. IVO HannStar LG Display CEC QUER wistron AVIC SDP GIANTPLUS AUO INNOLUX Panasonic FUNAI 群創光電 BOE BHTC Hisense JDI TRULY® Japan Display Inc. SAMSUNG SONY make-believe WALLLA In Camera Modules CMOS Image Sensor Wafer Level Optics ASIC and IP Servicing and licensing In AR Devices LCOS, WLO In VR Devices OLED SOC 16#17Fabless Manufacturing Expertise Display Driver Wafer Fabrication 力積電 SK hynix systemic MX Nexchip I-NEC UMC SMIC tsmc VIS V MXIC LISTED NYSE GLOBALFOUNDRIES CMOS Image Sensor Back-end Package Xintec KINGPAK® COILCSP MINIATURIZATION PROCESS Himax Chip Probe Testing KYEC CHIPBOND Chipbond Technology Corporation. CHIPMORE Processed Tape CHIPBOND Chipbond Technology Corporation. STEMCO LG Innotek JAC 易華電子股份有限公司 JMC ELECTRONICS CO.,LTD. Gold Bumping LB Semicon ChipMOS CHIPBOND USC UNION SEMICON networks ↓ FT Vate RW th KINGPAKⓇ CHIPBOND Chip Probe Testing 096 UNION SEMICON LBSemicon KYEC Chipbond Technology Corporation. CHIPMORE ChipMOS Micro Silicon YTEC Assembly and Testing CLUSEM ChipMOS LBLusem netes USC UNION SEMICON YTEC Chipbond Technology Corporation. CHIPMORE Chip Probe Testing SOC KYEC Global Testing Corporation 寰邦科技股份有限公司 解超豐電子股份有限公司 US Silicon 微電子 GREATEK ELECTRONICS INC. FT 范圍 矽格股份有限公司 SIGURD MICROELECTRONICS.CO C长电科技 CHANGJIANG ELEC.TECH. OSE A partner you can count 何超豐電子股份有限公司 "GREATEK ELECTRONICS INC. ASE GROUP KYEC Global Testing Corporation 寰邦科技股份有限公司 Ardentec 欣銓科技 OSE Package A partner you can count 台灣典範半導體 wan IC Packaging Corporation C长电科技 CHANGJIANG ELEC.TECH. 【超豐電子股份有限公司 "GREATEK ELECTRONICS INC. ASE GROUP 17#1810:45 Himax Market Opportunities by Product Application and Himax Strategies 91ch Im u-ray Player Home Th#19GROWTH OPPORTUNITY 1 TDDI Market Trends Expect higher TDDI penetration in smartphones, tablet, and auto going forward ☐ OEMs are meeting consumer demand for slimmer devices Himax TDDI Demand Forecast 2015-2022 In Millions of Units (IHS Market, 2019) ■Unit Demand in Millions Higher penetration of TDDI is refreshing smartphone and tablet life cycle, creating higher dollar content and margin opportunities In addition to TDDI growth, higher penetration of AMOLED products represents new opportunities for the segment Himax Strategies and Market Position TDDI pure in-cell solution ☐ ☐ ☐ ☐ ☐ Numerous new design-wins and shipment with top-tier smartphone and tablet makers and most panel makers in China starting Q419. Expect strong growth in 2020 and beyond In-cell TDDI becoming mainstream for tablet, Himax is the primary and sole source for non-iOS tablets. MP started for major tier-1 OEMs in 4Q19, with growth continuing into 2020 and beyond New generation FHD+ TDDI with COF package to enable super-slim bezel design for premium smartphone and tablet models The new TDDI design-wins for smartphone and tablet applications with mass shipment started late 2019, expect robust growth by increasing market share from 5% to 20% in 2020 Himax is the dominant automotive TDDI technology provider with mass production experience for leading panel makers. Although only small volume shipments in 2020, we anticipate meaningful shipment volume to ramp up moving into 2021 Higher ASP and better margin than traditional driver IC TDDI will be the biggest growth driver for Himax in 2020 900 800 700 600 500 400 300 200 50 100 2 0 743 747 695 595 450 310 2015 2016 2017 2018 2019 2020 2021 2022 TDDI Technology Enables OEMs to Manufacture Thinner, Better and Less Expensive Phones + 19#20GROWTH OPPORTUNITY 2.1 Display Driver IC (DDIC) Market Trends . Korean fab restructuring will further help Chinese panel makers to increase their global market share and with Korean easing the restriction of adopting large DDI from third party driver IC makers, both will drive volume for the Taiwan DDI supply chain Industry restructuring supports panel pricing recovery Leading Chinese panel makers' shipments continue to dominate in the No. 1 position of its total TFT-LCD capacity • 4K TV penetration accelerates and 8K TV started to emerge Demands for more sophisticated and higher performing displays are still rising in the automotive segment Continual Progression to Higher Resolution Displays and AMOLED in Smartphones AMOLED 29.3% LTPS 37.6% AMOLED 34.1% LTPS 2018 2019 41.6% • Higher adoption of TDDI and AMOLED Himax Strategies and Market Position Leading market share of large DDIC in China Major beneficiary of Industry and Korean fab restructuring which will increase Chinese panel maker's global market share Increased shipments of 4K solutions and collaboration with major panel makers on the development of next generation 8K TVs Next generation display for smartphone and automotive, Himax is the leader in key technologies such as TDDI, AMOLED and local dimming timing controller Expect shipment of AMOLED DDIC for TV, smartphone and wearables to start in 2020, though modest volume. Expect acceleration beyond 2020 8K TV is a strategic area for Himax due to its higher display driver and Tcon content and high technical barrier of entry Starting to see robust strength in customer demand in large and auto DDIC, ramping of new foundry. Expect strong growth in 2020 and beyond a-Si/IGZO 33% Wits View 02/2019 Large area FPD capacity (millions m²) a-Si/IGZO 24.3% China Takes a Leading Role in Display Panel Manufacturing and DDIC Demand 350 28% 300 24% 250 20% 200 16% 150 12% 100 8% 50 4% 0 0% 2017 2018 2019 2020 2021 2022 >Gen 10 <Gen 10 >Gen 10 % share ource THS Markit ≥Gen 10 percent share of total 2017 THE Mark 20#21GROWTH OPPORTUNITY 2.2 WLO and 3D Sensing Market Trends 9:00 Wafer-Level Optics (WLO) remains the best technology for structured light, Time-of- Flight (TOF) active stereo camera (ASC) and 3D sensing Very few companies can provide advanced WLO solutions to achieve optical high efficiency, small form factors, and eye safety regulations for consumer devices 3D sensing adoption is expected to be wider for Android smartphones and AloT starting 2019 and beyond. Himax Strategies and Market Position WLO: Exceptional design know-how and mass production expertise deliver consistent product quality and high yields for WLO anchor customer's large-scale adoption since 2017 with ongoing shipment in 2020. Expect multiple design wins of new content with higher ASP in 2H20 Himax continue to participate in most ongoing 3D sensing projects covering structured light for non-smartphone application and time-of-flight (TOF) for smartphone 3D, focusing on transmitter module by leveraging our WLO related expertise WLO 3D sensing projector in ToF WF module for Android smartphone will be the largest new growth opportunity for Himax moving forward. Target reference design ready 1Q20. Potential shipment opportunity with multiple Tier-1 OEMs in 2020, higher ASP than WLO 3D Sensing for non-smartphone, working with industry-leading facial recognition algorithm and application processor partners to develop new 3D sensing application for smart door lock with design-in projects already underway with certain end customers WLO and 3D Sensing will be the largest growth opportunity for Himax beyond 2020 Himax WLO for 3D Sensing DOE for Structured Light (30k) DOE for Active Stereo (6k 14k) Wafer Level Process Integrated Optics High Accuracy Scalability In Production Himax Flood for ToF and Structured Light Mini Package Ultra Small Size & Package 21#22GROWTH OPPORTUNITY 3 9:00. CIS and Ultra Low-Power Smart Sensing Market Trends 9:00 Many devices today already integrate always on sensing including audio sensor, accelerometers for movement, proximity sensor, ambient light sensor, and so forth Very few companies can provide ultra low-power solutions in vision Al in the area of human detection, people tracking, people counting, wake on approach, walk away detection, and unauthorized peek warning Al-based ultra-low power smart sensing solution adoption is expected to be wider in 2020 for for AloT applications include smart home applications, smart building, industrial, tracking and AR/VR for devices Himax Strategies and Market Position ☐ Himax Ultra low-power CMOS Image Sensor: ◉ " Industry first ultra low-power and low latency Back-Illuminated CMOS Image Sensor solution with autonomous modes of operation for always on, intelligent visual sensing applications The VGA resolution can double the range of detection over QVGA resolution, especially to support 90 degree wide field of view lens First mover advantage and have garnered attention and support from leading Al framework provider, ecosystem providers, and others in the industry. Represent significant growth opportunity Reference design win for Google TensorFlow Lite Our WiseEye solution contains Himax's industry leading CMOS image sensor and ASIC designs with Emza's Al-based algorithm. All with low power features. WiseEye will enable next generation Al-based computer vision technology with ultra-low power for notebook and may other markets. Expect shipment to Tier-1 NB OEM in 2020. High ASP CIS include near infrared (NIR) sensors for 3D sensing and ultra-low power computer vision Always-on-Sensor (AOSTM) for 'smart building' and security applications, next generation notebook, and AR/VR for mobile devices Ultra Low Power Sensor Applications Best For IoT/Smart Sensing Eye Tracking & Gesture Control 3D Depth Sensing Wave-Guide For AR Devices Help Create Holographic Images The Key Interface of AR Himax 1230 JFK Virgin Airlines New b Lunch Flight 23 10:31M On Time 30 SFO 72 4 lenovo. JVCKENWOOD SUSP 6 Logitech Quanta Computer DELL acer LG Innotek LED TRULY Chicony LITEONI FOXCONN Panasonic NEC HUAWEI SAMSUNG 22#23GROWTH OPPORTUNITY 4 LCOS Microdisplays 19 Market Trends Many top name multinationals or start-ups are investing heavily to develop the AR ecosystem; applications, software, operating systems, system electronics, and optics ☐ Limited companies provide the combination of R&D, joint ☐ development and manufacturing expertise Significant barrier of entry to new market entrants and existing technology companies without scalable manufacturing Himax Strategies and Market Position ◉ ☐ ■ ☐ ■ The leader in microdisplays with patent-protected technology, in-house facilities and shipping record of >2M units Focus on AR goggle devices and HUD for automotive applications List of AR goggle device customers covers many of the world's biggest tech names. Many have demoed their new AR goggles at CES 2020 On-going collaboration with Global Tier 1 AR glasses device manufacturers since 2011 Design-wins of high-end HUD for the automotive sector, target MP 2022 LCOS is one of the mainstream technology for AR goggle devices LCOS represents a long-term growth opportunity for Himax Light Rod PBS End Reflector • 120 Observer • Industrial Helmet Story Beam AR Glasses 2 Himax Front Lit LCOS Advantages . Compact Form Factor Brightness Power Efficiency MP Efficiency & Readiness HUD Optical Engine with LCOS Module Pico Projector 23#242019 YTD Financial Review ויי 200 00000 00000 00900#25Unit and Revenue History 221 $300 Revnues We are One of the Leading Semiconductor Companies in the World 1521 Unit Sales and Revenues (in millions of units and millions of $USD) 1516 Himax Units Sold 1464 1069 1337 1323 1297 1309 1311 719 1165 $833 1156 $841 882 $771 $803 $745 $692 $737 $724 $692 $685 $643 $633 $497 2004 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9 M 19 25#26A Balanced Product Mix.. Global market share leader in large, small and medium-sized panel driver ICs Market leader in 3D sensing – Structured light, active stereoscopic and ToF Increasing non-driver sales diversifies customer base, improves product mix and lifts gross margin Innovative technologies in advanced Wafer Level Optics, CIS and LCOS microdisplays " GM & OPM significantly higher than corporate average Phenomenal ROI AR technology provider of choice Total solution & component provider Category Product Mix Himax ■Large Panel Drivers S/M Panel Drivers Non-Driver 2.60% 5.1% 6.7% 8.2% 12.7% 14.0% 16.4% 15.5% 20.0% 19.0% 16.7% 20.0% 22.7% 19.0% 18.3% 22.0% 34.8% 44.6% 44.6% 53.9% 48.6% 46.0% 45.0% 45.6% 53.1% 44.5% 81.9% 78.2% 71.3% 57.0% 42.7% 41.4% 29.7% 26.9% 32.4% 34.0% 32.8% 36.0% 36.1% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M 19 Revenues (US$ M) $918 $833 $692 $643 $633 $737 $771 $841 $692 $803 $685 $724 $497 26#27...and a Diversified Customer Base Himax Largely reduced dependence on one single customer, Innolux. Diversifying product revenues by non-driver product wins and leveraging existing customers Innolux disposed of its entire equity holding in Himax on June 19th, 2013, ending its status as Himax's related party Growing shipment to new panel manufacturer customers in China, Korea and Taiwan since 2013 Market share leadership in core driver IC business Benefiting from China localization, capacity expansion Expanding customer base to include many global top tier tech companies for new TDDI, OLED technology, LCOS microdisplay, Wafer Level Optics, 3D sensing and CMOS image sensors 100% Customer Diversification ■Innolux ■Non-Innolux 80% 40.4% 37.5% 35.4% 47.3% 59.2% 65.8% 60% 77.4% 80.4% 78.9% 84.8% 84.5% 87.4% 90.2% 40% 59.6% 62.5% 64.6% 52.7% 20% 40.8% 34.2% 22.6% 19.6% 21.1% 15.2% 15.5% 12.6% 9.8% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M 19 Revenues (US$ M) $918 $833 $692 $643 $633 $737 $771 $841 $692 $803 $685 $724 $497 27#28Gross Margin is a Key Business Focus Revenues & Gross Margin % US$M in Revenues and Gross Margin % of Sale 24.5% 24.6% 24.5% 24.2% 24.4% 23.6% 23.1% 23.3% 22.0% 21.0% 20.5% 20.5% 19.8% $918.2 $832.8 $692.4 $642.7 $633.0 $840.5 $802.9 $770.7 $737.3 $723.6 $691.8 $685.2 2007 Himax Geographical Revenue Mix & Quarterly GM US$M in Revenues and Quarterly Gross Margins Quarterly Gross Margin Percentages ■China Sales ■ROW Sales 4015 1016 2016 3016 4Q16 1017 2017 3017 4Q17 1018 2018 3018 4018 1019 2019 3Q19 22.9% 26.2% 26.1% 25.6% 19.1% 23.1% 23.8% 25.5% 24.6% 22.5% 23.0% 23.4% 24.3% 22.6% 19.5% 19.5% $80.5 $76.0 $73.7 $79.7 $65.2 $74.7 $56.2 $67.2 $58.7 $68.9 $59.5 $45.3 $50.7 $55.1 $60.1 $56.7 $497.0 $103.3$115.1 $125. $137.6$129.7 $95.1 $95.0 $117.4$113.9$106.7$122.7$119.5$131.5 $112.6 $109.2 $124.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19 Better product mix lifts blended margin • Successful transformation since 2011 Revenues growth and improved gross margin in 2016 due to product mix Expect GM rebound in 2020 • Positive about long term growth 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 ■ GM retraction in 2015: higher mix of China sales and competitive pricing in the LDDIC market ☐ GM improvement in 2016 ■ ■ Resolution migration improved GM of SMDDIC ■ Favorable product mix with higher non-driver sales %: LCOS and WLO sales growth ■ Lower GM in 4Q16 due to an additional inventory write-down Improved GM in 2H vs. 1H in 2017 driven by more favorable product mix which due primarily to WLO shipments starting in July, 2017, and the one- off customer reimbursements related to AR goggle device business in Q3 ■ 2019 GM declined due to product mix change ■ Expect GM and EPS improvement in 2020 and beyond 28#29OPEX and the Bottom Line OPEX and % of Total Sales (US$M/%) 23.2% 22.8% 23.9% Profit and EPS 17.3% 14.2% 15.5% 17.2% 14.0% 15.2% 15.8% 19.1% 16.8% (US$M / US$) 10.7% $165.5 $158.7 $143.9 $133.2$132.5 $135.1 $117.5 $0.40 $118.8 $98.1 $98.3 $99.7 $109.0$103.5 Himax $0.39 $0.36 $0.30 $0.30 $0.21 $76.4 $0.19 $0.15 $0.16 $66.6 $61.5 $0.06 $51.6 $0.050 $50.9 $39.7 $33.2 $25.2 $27.7 -$0.085 $10.7 $8.6 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19 Revenues $918 $833 $692 $643 $633 $737 $771 $841 $692 $803 $685 $724 $497 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19 -$14.7 ◉ ◉ ◉ Completion of the new building in 2018: house additional WLO capacity, the new active alignment equipment, and extra office spaces Higher capex to meet the demands of 3D sensing total solution or projector module or optics Continue committing on R&D and customer engineering on our strategic growth area that will bring in handsome return in the next few years Profitability decline in 2019 due to product mix change, weaker market demand, competition, lower ASP and higher costs Expect significant profitability improvement starting 2020 29#30Performance History $56.3 Operating and R&D Expenses (in millions USD) ■R&D Expense Operating Expense ex. RD EBITDA (in millions USD) $42.5 $41.0 $39.3 $41.4 $38.1 $37.1 $27.0 $23.3 $29.9 $32.6 Himax $31.0 $100.6 $90.1 $79.5 $76.4 $73.8 $57.5 $49.1 $47.5 $47.7 $30.1 $28.6 $117.7 $123.0 $87.6 $91.8 $94.4 $95.8 $71.3 $76.4 $79.0 $80.4 $87.8 $70.9 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19 Total Operating and R&D Expense $3.4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M 19 $143.9 $98.3 $99.7 $108.9 $103.5 $117.5 $133.2 $132.5 $135.1 $158.7 $165.5 $118.8 Continue investing heavily on R&D and customer engineering on our strategic growth areas including WLO, CIS, TDDI and AMOLED; OPEX in 2018 vs. 2017 up 4.3% 2014, 2015, 2016, 2017, 2018 and 2019 OPEX include share-based compensation $11.1mn, $6.2mn, $10.2mn, $6.9mn, $4.1mn, and $0 ■ ◉ Robust profit growth in 2016 as a result of revenue growth and GM enhancement from new product 2019 profit setbacks caused by lower gross margin due to product mix change ◉ Expect turnaround and positive profitability outlook starting 2020 30#31Income Statement Himax Technologies, Inc. Consolidated Statements of Profit or Loss (Unaudited) Himax For the Fiscal Period Ended Revenues Cost of revenues 3Q-2019 (Unaudited) $164,254 132,239 3Q-2018 (Unaudited) $188,383 144,241 $169,318 20-2019 Y2018 Y2017 (Unaudited) (Audited) (Audited) $723,605 $685,167 136,370 554,690 518,142 Gross profit 32,015 44,142 32,948 168,915 167,025 Gross margin Operating expenses Research and development General and administrative Sales and marketing Total operating expenses Operating income (loss) Non-operating income (loss) Profit (loss) before income taxes Income tax expense Profit (loss) for the period 19.5% 23.4% 19.5% 23.3% 24.4% 29,156 32,129 28,302 123,037 117,662 6,053 5,635 6,155 21,823 20,461 4,447 5,588 4,436 20,670 20,543 39,656 43,352 38,893 165,530 158,666 (7,641) 790 (5,945) 3,385 8,359 (244) (644) 48 3,635 21,733 (7,885) 146 (5,897) 7,020 30,092 0 26 0 994 4,554 (7,885) 120 (5,897) 6,026 25,538 Add: Loss attributable to noncontrolling interests 705 769 746 2,543 2,142 Profit (loss) attributable to Himax stockholders ($7,180) $889 ($5,151) $8,569 $27,680 Non-IFRS profit (loss) attributable to Himax stockholders ($6,897) $4,471 ($4,788) $12,907 $33,889 IFRS earnings (loss) per ADS attributable to Himax stockholders (in cents) Basic (4.2) 0.5 (3.0) 5.0 16.1 Diluted (4.2) 0.5 (3.0) 5.0 16.1 Non-IFRS earnings (loss) per ADS attributable to Himax stockholders (in cents) Basic (4.0) 2.6 (2.8) 7.5 19.7 Diluted (4.0) 2.6 (2.8) 7.5 19.7 31#32Balance Sheet Himax Technologies, Inc. Consolidated Statements of Financial Position (Unaudited) September 30, 2019 (Unaudited) June 30, 2019 (Unaudited) Himax September 30, 2018 (Unaudited) Assets Current Assets: Cash and cash equivalents Financial assets at amortized cost $116,579 $92,857 11,278 12,463 $90,946 12,001 Financial assets at fair value through profit or loss 97 17,034 0 Accounts receivable, net Inventories Restricted deposit 157,320 176,224 187,613 167,581 188,535 145,812 164,000 164,322 164,328 Other current assets 20,987 23,373 21,613 Total current assets 637,842 674,808 622,313 Financial assets at fair value through profit or loss 9,761 9,768 1,529 Financial assets at fair value through other comprehensive income 703 710 772 Equity method investment 4,036 4,102 9,356 Property, plant and equipment, net 141,835 117,544 109,198 Goodwill 28,138 28,138 28,138 Other Assets 24,827 26,470 23,576 Total Assets $847,142 $861,540 $794,882 Liabilities and Equity Current liabilities: Unsecured borrowings $90,606 $77,025 $0 Secured borrowings* 164,000 164,000 164,000 Accounts payable 114,825 134,224 141,553 Other current liabilities 41,696 42,147 46,959 Total current liabilities 411,127 417,396 352,512 Other liabilities 6,060 5,934 6,575 Himax stockholders' equity Noncontrolling interest 431,248 438,797 439,451 (1,293) (587) Total Liabilities and Equity $847,142 $861,540 (3,656) $794,882 * Short-term borrowings is guaranteed by restricted deposit 32#33Cash Flow Statement Himax 3Q-2019 2Q-2019 (Unaudited] (Unaudited) 2018FY (Audited) 2017FY (Audited) Profit (loss) for the period Depreciation and amortization ($7.885) 6,004 ($5,897) 6,209 Expected credit loss recognized on accounts receivable Share-based compensation expenses Gain on disposals of property, plant and equipment 0 0 $6,026 20,327 290 $25,538 16,680 155 92 20 408 997 0 0 0 (26) Gain on re-measurement of the pre-existing relationships in a business combination Changes in fair value of financial assets at fair value through profit or loss Interest income Finance costs Income tax expense Share of losses of associates Inventories write downs Foreign currency exchange losses (gains) of financial assets Changes in: Decrease (increase) in accounts receivable Decrease (increase) in inventories Increase (decrease) in accounts payable Others Cash generated from operating activities Interest received Interest paid Income tax paid Net cash provided by (used in) operating activities Acquisitions of property, plant and equipment 0 0 (1,662) 1 (24) (2,036) (416) (514) (2,429) 0 (23,226) (2,225) 634 545 1,232 878 0 0 994 135 2 8,174 5,008 182 6,921 (23) 5,326 1,095 17,724 294 42,263 4,554 1,200 12,298 0 36,823 18,905 12,780 (19,399) 5,289 24,496 (71) (4,226) (13,057) (1,731) (13,759) (794) (45,085) 10,567 253 7,204 (1,665) 2,250 (2,336) 7,404 42,476 213 (639) (86) $23,984 845 2,361 2,165 (574) (877) (565) (4,229) ($17,717) (4,679) (14,683) $4,009 $29,393 Acquisitions of financial assets at amortized cost Proceeds from disposal of financial assets at amortized cost Acquisitions of financial assets at fair value through profit or loss (31,222) (959) 1,896 (4,339) Proceeds from disposals of financial assets at fair value through profit or loss Others Net cash used in investing activities 21,287 214 ($13,123) (5,711) (1,446) 335 (34,537) 17,634 1,211 ($22,514) (49,672) (4,766) 3,514 (26,277) 48,764 (9,829) (39,292) (5,572) 744 (41,523) 56,375 (5,820) Payments of cash dividends Pledge of restricted deposit Proceeds from unsecured borrowings 0 0 ($38,266) (17,210) ($35,088) 0 60,000 Repayments of unsecured borrowings Proceeds from secured borrowings Repayments of secured borrowings Others Net cash provided by (used in) financing activities Effect of foreign currency exchange rate changes (46,385) 67,000 (67,000) (392) $13,223 (362) 0 77,006 (40,000) 27,000 (27,000) (460) $36,546 (211) Net increase (decrease) in cash and cash equivalents $23.722 ($3.896) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $92,857 $96,753 $116,579 $92,857 (17,000) 40,000 (20,000) 91,000 (74,000) 11 $2,801 (130) ($31,586) $138,023 $106.437 (41,281) (9,000) 0 0 151,161 (142,161) 67 ($41,214) 480 ($46,429) $184,452 $138,023 33#34Management Team Himax 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 20 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 two consecutive years in 1992 and 1993, ERSO Award from Pan Wen Yuan Foundation in 2008, etc. 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. 34#35Company Contact Us Jackie Chang, CFO Main: +886-2-2370-3999 #22300 US Office: +1 (949) 585-9838 #252 jackie [email protected] Ophelia Lin, IR Project Deputy Director Main: +886-2-2370-3999 #22202 Ophelia [email protected] Sky Wang, IR Project Manager Main: +1-630-362-9753 sky [email protected] US Investor MZ Relations Maili Bergman Main: +1 (949) 298-4320 [email protected] www.mzgroup.us Corporate Counsel BAKER & MCKENZIE Auditor KPMG SEC Legal Counsel DAVIS POLK & WARDWELL 35