Slides
Page 1
10.02 105 8.8.88 -888 Drive for better vision Himax Nasdaq : HIMX 2026 Q2 Earnings Updates Himax
Page 2
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, 2025 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. Forward Looking Statements 1
Page 3
Revenues, GM and EPS All Exceeded Guidance Revenues $227.4M Beat • Increase 14.2% QoQ; Up 5.9% YoY • Guidance: Increase 10.0% - 13.0% QoQ • Better-than-expected auto IC sales GM 33.1% Beat • Increase 2.7% QoQ; Up 1.9% YoY • Guidance: Around 32% • Favorable product mix EPS 11.4 Cents Beat • 1Q26 4.6 cents; 2Q25 9.5 cents • Guidance: 8.6 ~ 10.3 cents 2026 Q2 Financial Summary 2 71.4% 20.2% 8.4% 2026 Q2 Sales & Breakdown LDDIC $19.2M Non-Driver $45.9M SMDDIC $162.3M
Page 4
LDDIC Revenue $19.2M • -21.0% QoQ • Panel makers’ high-end TV IC restocking in prior quarters SMDDIC Revenue $162.3M • +19.6% QoQ Auto driver sales increased double digits QoQ • Broad-based replenishment of TDDI and DDIC • Auto business well over 50% of total sales Non-Driver Revenue $45.9M • +17.7% QoQ • Robust auto Tcon shipments • Tcon sales > 10% of total, with more than half from auto Tcon 2026 Q2 Financial Summary by Segment LDDIC $25.0M Non-Driver $45.4M SMDDIC $166.8M LDDIC $21.7M Non-Driver $42.3M SMDDIC $139.1M 3 71.4% 20.2% 8.4% 2026 Q2 Sales & Breakdown LDDIC $19.2M Non-Driver $45.9M SMDDIC $162.3M
Page 5
2026 Q2 Operating Expenses & Profits Operating Expenses $50.7M • +0.8% QoQ / +3.6% YoY • Remained disciplined in managing costs while investing in select non-driver IC areas with compelling growth potential Operating Income $24.6M • 1Q26 $10.2M / 2Q25 $18.1M Operating Margin 10.8% • 1Q26 5.1% / 2Q25 8.4% Net Profit $19.9M • 1Q26 $8.0M / 2Q25 $16.5M EPS 11.4 cents • 1Q26 4.6 cents / 2Q25 9.5 cents 4
Page 6
Q2 Free Cash Balance $298.7M Q2 Inventories $151.5M $259.6 $217.3 $201.9 $203.7 $192.5 $158.7 $129.9 $134.6 $137.4 $152.7 $151.7 $151.5 $0.00 $100.00 $200.00 $300.00 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 US$M Inventory Level Free Cash Balance • 1Q26 $287.6M / 2Q25 $332.8M • Q2 Operating Cash Inflow $17.5M Q3 Cash Balance to Decline • Cash dividends $44M • Employee bonus awards $11.7M (est.) Balance Sheet as of June 30, 2026 5
Page 7
Revenues Increase 7% to 11% QoQ Gross Margin Around 34% Net Profit 8.0 cents to 10.0 cents per diluted ADS 2026 Q3 Guidance 6 Note *: The net profit already factored in the estimated expense of $11.8M, including $11.7M from vested portion of 2026 estimated annual bonus and $0.1M from the amortized portion of previous years’ unvested bonuses
Page 8
Strong AI demand continues to tighten capacity at mature-node foundries as well as packaging and testing facilities, impacting many non-AI applications The resulting higher costs, extended lead times, and constrained capacity supply are expected to persist in the near term Leveraging our established global supply chain to enhance production flexibility and secure capacity for customer demand and future production ramps Pricing adjustments implemented to share increased costs. Some took effect in Q2, with additional adjustments taking place over time 2026 Q3 Outlook 7
Page 9
Remain optimistic about our long-term automotive business growth prospects Automotive secular growth driven by smart vehicle interiors • More displays, larger, higher-resolution displays, and diverse cabin configurations • Comprehensive LCD & OLED portfolio, diversified global customer base, and robust design-win pipeline • Differentiating through next-gen technologies (LTDI, HUD Tcon, OLED driver & touch, Micro LED, Knob-on-Display and capacitive physical buttons) Increasing content per vehicle and expanding long-term growth opportunities 2026 Q3 Outlook – Automotive Business 8 HUD Knob on DisplayOLED Tcon / DDIC / Touch Micro LED
Page 10
Intensifying competition is driving faster vehicle launches & shorter product lifecycles Broader adoption of platform standardization across vehicle models favors Himax • Most comprehensive automotive display IC portfolio • Market-leading DDIC, TDDI, and Tcon • Leadership in next-gen LTDI and OLED technologies Standardized Himax solutions enable rapid deployment of validated display ICs across multiple new vehicle deployments • Reduce engineering effort, lower system costs, and shorten development cycles Well Positioned to Benefit from Auto Platform Standardization 9
Page 11
Focus on key growth areas: Smart glasses, ultralow power AI and CPO • Diversifying sales base with attractive long-term growth and margin Smart glasses - WiseEye • A leading global brand just launched WiseEye-powered smart glasses • Growing design-in pipeline spanning global brands, platform providers, ODMs, and hyperscalers Smart glasses - LCoS • Optimal balance among size, weight, resolution, image quality, power consumption, and cost, a compelling choice for AR glasses equipped with see-through display • Full-color and ultra-brightness green-only modes • Years of mass production track record 2026 Q3 Outlook – Beyond Display ICs 10
Page 12
⚫ Customer timelines remain aggressive with demand showing no signs of slowing ⚫ Deepening customer engagements with FOCI by offering a flexible portfolio ◼ Customized solutions tailored specifically for customer’s needs ◼ Standardized technology platform co-developed with a leading foundry partner ◼ Supports co-packaged and pluggable packaging architectures ⚫ 2H26 focus: Achieve MP readiness through customer qualification, manufacturing yield improvement, and stable MP capabilities ⚫ Gen 1 (1.6T/3.2T) & Gen 2 (6.4T) engineering production ramps underway in Q3 ⚫ 2027 CPO shipments significantly exceed 2026, with meaningful financial contribution starting in 2027 ⚫ Co-developing with FOCI for next-gen optical solutions to address rapidly growing HPC & AI bandwidth demands ◼ Higher fiber counts, enhanced optical precision, and CWDM 2026 Q3 Outlook - WLO for CPO Updates 11
Page 13
Q3 LDDIC sales to decline by single digit QoQ • MNT IC sales to be down • TV IC sales to be up Encouraging design-in momentum in OLED notebooks • Rising memory prices accelerating shift from entry-level to premium NB models • New Gen 8.6 OLED fab ramp-ups in China late 2026 ~ 2027 drives higher OLED adoption in NB • Comprehensive OLED IC portfolio (DDIC, Tcon, PMIC and touch controllers) 2026 Q3 Outlook - LDDIC 12
Page 14
Q3 SMDDIC sales to increase by high-single-digits QoQ Auto driver IC (DDIC & TDDI) sales to increase by a solid double-digit QoQ • Broader customer demand for DDIC & TDDI • Multiple LTDI projects MP across car brands worldwide Healthy underlying demand driven by multiple new projects entering MP in upcoming quarters 2026 auto driver IC sales to grow by double digits YoY; strong growth momentum to continue into 2027 2026 Q3 Outlook – SMDDIC 13
Page 15
Platform standardization is driving broader LTDI & local dimming Tcon adoption • Multiple LTDI projects MP in several car brands across continents • Requires 4+ LTDI chips (sometimes 10+) & at least 1 local dimming Tcon • Higher content per car, stronger customer stickiness & increased barriers to entry Auto OLED • Comprehensive OLED portfolio spanning DDIC, Tcon, touch controller ICs, and ASIC • Early collaborations with leading OLED panel makers in KR & CN have built a strong development pipeline • Benefit as premium auto displays transition from LCD to OLED • TED integrates DDIC & Tcon in a single chip for smaller, cost-effective auto displays 2026 Q3 Outlook – Auto Advanced T echnologies 14
Page 16
Smartphone IC sales to increase QoQ • Continued shipments for a leading brand's mainstream models • Inventory build-up for upcoming premium models Tablet IC sales to decline QoQ • Capacity constraints limit additional shipments 2026 Q3 Outlook – Smartphone and Tablet 15
Page 17
Q3 non-driver revenue to increase low-teens QoQ Q3 Tcon sales to increase by low-teens QoQ • Auto Tcon business to increase decent double-digit QoQ, driven by broad-based legacy product shipments & new projects entering MP Himax continues to enjoy strong growth in auto Tcon despite industry-wide capacity constraints • Particularly in auto Tcon featuring local dimming • Auto Tcon poised for another strong year in 2027 Non-driver Business Updates 16
Page 18
T2000 Tcon adopted for E Ink's next-gen color ePaper platform Proprietary parallel-processing architecture enables simultaneous display refresh and data transmission • Significantly enhances dynamic display performance while preserving ePaper's ultralow power consumption Accelerating the transition from static signage to dynamic applications • Retail advertising, public information displays, and smart commercial environments Non-driver Business – T con for ePaper 17
Page 19
WiseEye is an ultralow power AI sensing total solution, targeting battery-powered endpoint device markets • Industry-leading power efficiency of just a few milliwatts • On-device AI inferencing • 24/7 always-on image and voice sensing • Compact size Expanding adoption across NB, surveillance, access control devices, palm vein authentication, smart office and smart glasses WiseEyeTM Ultralow Power AI Sensing 18 Single-digit mW Ultralow Power Battery-Powered Endpoint Devices Always-On On-Device AITotal Solution
Page 20
Expanding design-ins driven by plug-and-play, ultralow power, and on-device AI PalmVein modules • Recently verified by TÜ V Rheinland for recognition accuracy, response speed, and liveness detection • TÜ V verification and GDPR compliance reinforce the privacy, security, and performance of Himax’s biometric authentication solutions • Strengthening customer confidence & accelerating adoption in security-sensitive applications • Expanding design-in across smart access, workforce management, smart door locks, computer monitors, and smart office WiseEye _ Module Business 19
Page 21
Designed for security applications, featuring ultralow power, wide FOV, long-range detection, and low-light performance Accurately detects and continuously tracks multiple individuals, significantly reducing false triggers versus traditional PIR solutions Proactive 24/7 sensing captures full sequence of events Up to 5 years of battery life with high-precision detection at distances and in lighting as low as 1 lux Growing design momentum across multiple security applications; U.S. surveillance customer entering MP by year-end WiseEye _ WiseGuard Module 20
Page 22
WiseEye is gaining broad market recognition in smart glasses as a compact, ultralow power, always-on AI perception front end Outward-facing environmental sensing through scene understanding and object classification Precise inward vision sensing for eyeball tracking and iris authentication Leading global brand launched this fall; expanding pipeline with platform providers, ODMs, and consumer electronics companies WiseEye in Smart Glasses 21
Page 23
Karen Tiao, Head of IR/PR Tel: +886-2-2370-3999 hx_ir@himax.com.tw Mark Schwalenberg, Director Investor Relations - US Representative MZ North America Tel: +1-312-261-6430 HIMX@mzgroup.us www.mzgroup.us Company Auditor SEC Legal Counsel Corporate Counsel Contact Us
Page 24
Drive for better vision