Himax Company Overview
Gross 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
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