Company Meets Q2 2018 Revenue, Gross Margin Guidance, Exceeds EPS Guidance

Provides Q3 2018 Guidance Revenue to be around Flat Sequentially, Gross Margin to be around 22.5%, IFRS Loss per ADS to be around 1.0 Cent and non-IFRS Earnings per ADS to be around 1.5 Cents

-- Q2revenueincreased 11.4% QoQ to $181.4M,came in at the mid-point of the Company’s guidance -- Product sales: large driver ICs, 33.4% of revenue, up2.2% QoQ; small and medium-sized driver ICs, 49.2% of revenue, up 24.5% QoQ; non-driver products, 17.4% of revenue, down1.1% QoQ -- Q2 IFRS grossmarginwas 23%, up 50 bps sequentiallydue to improved product mix -- Q2 IFRS profitwas $2.0M, or1.2cents per diluted ADS, up from lossof $2.8M, or 1.6centsper diluted ADSin Q1 2018 -- Expect 2H18 WLOshipmentto increase significantly over 1H18 -- Company is in partnership with leading smartphone names to enable their 3D sensing by providing optics, projector or total solution, depending on their needs and in-house capabilities; projects cover all types of 3D sensing technologies including structured light, ASC and ToF -- Company remains positive on its long term business outlook

TAINAN, Taiwan, Aug. 09, 2018 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the second quarter ended June 30, 2018.

“The Company’s second quarter 2018 revenues and gross margin met our guidance while IFRS earnings per diluted ADS exceeded guidance. The anticipated sequential growth in revenue was mainly driven by accelerating TDDI shipment in the smartphone sector and further growth in the automotive sector in the small and medium-sized display driver business. Furthermore, our WLO business in the non-driver IC business rebounded as anticipated. Shipment volume increased and WLO capacity utilization improved subsequently,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

“Looking into the third quarter, we expect our large display driver IC business will grow sequentially benefiting from Chinese panel customers’ capacity expansion and the ramping of new fabs. Our small and medium-sized business is likely to decline as our growth in the automotive segment will be offset by the significant decline of smartphone sales. The soft smartphone sales was caused by our limited TDDI shipment due to the constraint of industry pervasive capacity shortage issue and the traditional discrete driver IC is being replaced quickly by TDDI and AMOLED. To capture the TDDI opportunity, we have been working very hard to source and qualify additional foundry capacity. We expect the addition of new foundry capacity for TDDI will start mass production toward early fourth quarter and will substantially grow our TDDI revenue starting from Q4 2018.”

“For the non-driver areas, we expect the WLO shipment for the second half of 2018 will increase significantly versus the first half. As to our 3D sensing business, we are in partnership with several leading smartphone names to enable their 3D sensing by providing optics, projector or total solution, depending on customer’s needs and their in-house capabilities. The projects we are involved in cover all three types of 3D sensing technologies, namely structured light, active stereo camera (ASC), and to a lesser extent, time-of-flight (ToF). 3D sensing for Android smartphone market is still at a nascent stage with very limited adoption in 2018. We expect the market adoption will pick up starting 2019. With our comprehensive technology coverage, proven manufacturing expertise, new solutions roadmap and alliances with leading AP platform providers, we believe we are best positioned to be the partner of choice for Android smartphone makers in their 3D sensing projects,” said Mr. Jordan Wu.

Second Quarter 2018 Financial Results

The second quarter revenues of $181.4 million represented an increase of 11.4% sequentially and an increase of 19.5% year-over-year. Gross margin was 23.0%, up 0.5% sequentially. IFRS earnings per diluted ADS were 1.2 cents, better than the guidance range of 0.0 to 1.0 cent per diluted ADS.

Revenue from large display drivers was $60.6 million, up 2.2% sequentially, and up 16.3% year-over-year, driven by increasing 4K TV penetration and Chinese panel customers’ ramping of new LCD fabs. Large panel driver ICs accounted for 33.4% of the company’s total revenues for the second quarter, compared to 36.4% in the first quarter of 2018 and 34.4% a year ago.

Revenue for small and medium-sized display drivers came in at $89.3 million, up 24.5% sequentially and up 27.5% year-over-year. The driver ICs for small and medium-sized applications accounted for 49.2% of total sales for the second quarter, as compared to 44.0% in the first quarter of 2018 and 46.1% a year ago. Sales into smartphones were up 54.3% sequentially and up 42.5% year-over-year. The growth was driven by accelerating TDDI shipments and the anticipated smartphone makers’ inventory replenishment for new product launches.

Driver IC revenue for automotive applications recorded another historical quarter, up 15% sequentially and more than 35% year-over-year. The quarterly revenue reached $28.7 million, accounting for more than 19% of our driver IC revenue. Himax is happy with the strong momentum in this space.

Revenues from non-driver businesses were $31.5 million, down 1.1% sequentially but up 6.4% versus last year. Non-driver products accounted for 17.4% of total revenues, as compared to 19.6% in the first quarter of 2018 and 19.5% a year ago. The sequential decline was mainly due to reduced NRE income. The year-over-year increase was driven mainly by WLO shipment. The Company expects WLO shipment to continue to rebound strongly in the second half.

IFRS gross margin for the second quarter was 23.0%, up 50 basis points from 22.5% in the first quarter of 2018 but down 80 basis points from the same period last year. The sequential increase was due mainly to improved product mix.

IFRS operating expenses were $41.3 million in the second quarter of 2018, up 3.6% from the preceding quarter and up 11.3% from a year ago. The year-over-year increase was primarily the result of rising R&D expenses in the areas of 3D sensing, WLO, TDDI, and high-end TV, as well as annual merit increase.

IFRS operating margin for the second quarter of 2018 was 0.3%, up from -0.6% in the same period last year and up from -2.0% in the prior quarter. The sequential and the year-over-year increase was both a result of revenue increase but offset by increased operating expenses.

Second quarter non-IFRS operating income was $0.8 million, or 0.5% of sales, up from -0.3% for the same period last year and up from -1.8% a quarter ago.

IFRS profit for the second quarter was $2.0 million, or 1.2 cents per diluted ADS, compared to IFRS loss of $2.8 million, or 1.6 cents per diluted ADS, in the previous quarter and IFRS loss of $0.7 million, or 0.4 cents per diluted ADS, a year ago. The sequential increase was a result of higher sales and better gross margin.

Second quarter non-IFRS profit was $2.3 million, or 1.3 cents per diluted ADS, compared to a loss of $2.6 million, or 1.5 cents per diluted ADS last quarter and a loss of $0.3 million, or 0.2 cents per diluted ADS the same period last year.

Balance Sheet and Cash Flow

Himax had $126.7 million of cash, cash equivalents and other financial assets as of the end of June 2018, compared to $185.9 million at the same time last year and $151.9 million a quarter ago. The cash position dropped $25.2 million due primarily to (1) capex of $17.7 million, (2) cash outflow of $2.8 million from operations, and (3) Emza investment of $3.5 million. On top of the above cash position, restricted cash was $147.0 million at the end of the quarter, as compared to $147.0 million in the preceding quarter and $107.2 million a year ago. The restricted cash is mainly used to guarantee the Company’s short-term borrowings for the same amount.

Himax’s inventories as of June 30, 2018 were $142.1 million, down from $148.0 million a quarter ago and down from $147.7 million at the same time last year. Account receivables at the end of June 2018 were $176.3 million as compared to $164.5 million a year ago and $166.6 million last quarter. DSO was 93 days at the end of June 2018, as compared to 97 days a year ago and 92 days at end of the last quarter.

Net cash outflow from operating activities for the second quarter was $2.8 million as compared to an outflow of $1.2 million for the same period last year and an inflow of $2.3 million last quarter.

Capital expenditures were $17.7 million in the second quarter of 2018 versus $11.7 million a year ago and $18.6 million last quarter. The second quarter capex consisted mainly of ongoing payments for the new building’s construction, WLO capacity expansion and installation of active alignment equipment to support the Company’s 3D sensing business. Other capex, primarily for design tools and R&D related equipment for the Company’s traditional IC design business, is around $2.5 million during the quarter.

Share Buyback Update

As of June 30, 2018, Himax had 172.1 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, the total ADS outstanding are 172.5 million.

Fiscal Year 2017 Dividend Declaration

During the second quarter, the Company declared an annual cash dividend of 10 cents per ADS, totaling $17.2 million, which has been paid out on July 31. The Company’s dividend is determined primarily by the prior year’s profitability. Himax’s decision to pay out 61.7% of last year’s net profit demonstrated its continued support for the shareholder base and strong confidence in the near term outlook for the Company’s newly increased capex and the overall long-term growth prospects.

2018 Investor Outreach and Conferences

Ms. Jackie Chang, CFO, Ms. Ophelia Lin, internal IR Deputy Director, Mr. Ken Liu, internal IR, and Mr. Greg Falesnik, Himax’s US-based IR, will maintain corporate access for shareholders and attend future investor conferences. If you are interested in speaking with the management, please contact Himax’s US or Taiwan-based investor relations contact at the numbers below.

Q3 2018 Outlook

Comparing to the second quarter revenues, Himax expects single digit growth for large driver ICs; mid single digit decline for small and medium-sized driver IC and around 15% growth for its non-driver IC business.

Display Driver IC MarketLDDICLarge display driver IC business recorded low-single-digit growth in the second quarter due mainly to the Company’s Chinese panel customers’ ongoing capacity expansion, a more favorable product mix driven by the market’s 4K TV demands and shipment to a new panel customer who recently started ramping up their first fab. Looking into the third quarter, while the Chinese domestic market is relatively slow for reasons such as weak currency, the western markets, especially in the US, remain robust. Himax sees a single digit growth for the third quarter as the Company continues to benefit from Chinese panel customers’ capacity expansion and ramping of new fabs. However, foundry capacity shortage remains an issue. While Himax is making good progress in adding new capacity into its pool, the ultimate ramping schedule will depend on how fast its panel customers can go through their customer qualification, something all the Company’s major customers are working very hard on.

Looking into the future, with the 2020 Tokyo Olympics approaching and more Gen 10.5 fabs coming online to enable very large screen 8K TVs, many TV manufacturers are rushing to introduce consumer-grade super high end products with 8K resolution. Capitalizing on the Company’s 4K TV success, Himax is strongly positioned for this emerging market opportunity.

SMDDICThe trend for full-screen, 18:9 display is already fully in place for smartphone with phone makers now aggressively adopting such screens for their 2018 and 2019 models even for mid-end and entry-level products. Himax’s comprehensive TDDI product portfolio positions it well to support this trend. Himax is pleased that both its FHD+ and HD+ TDDI ICs enjoyed significant growth during Q2, with revenue and shipment volume both more than tripled during the quarter, despite being able to fulfill just a fraction of orders amid the severe foundry capacity shortage. Capped by the very limited capacity, its Q3 TDDI shipment will likely see some 10% decline from that of the second quarter. TDDI’s foundry capacity shortage is even more challenging than that of the large display driver IC. To capture the TDDI opportunity, the Company has been working very hard to source and qualify additional foundry capacity. The Company is on track to complete the porting of its existing products into another foundry vendor and start mass production toward early fourth quarter. Himax expects the addition of the new foundry capacity will substantially grow its TDDI revenue starting from Q4 with further growth expected throughout 2019. In parallel, to further widen its reach, the Company is working on new designs based on additional foundry partners’ processes which, however, will only be ready next year. The Company expects TDDI penetration will reach 40% in 2019 which represents an enormous growth opportunity for Himax. TDDI has more than double the ASP of the traditional driver IC with better margins. It will change Himax’s product mix for smartphone display driver IC and make a very significant contribution to its growth going forward. Looking into the third quarter, sales for smartphones are likely to decline around 40% sequentially as the TDDI shipment is constrained by capacity shortage and the traditional discrete driver IC is being quickly replaced by TDDI and AMOLED.

In automotive segment, the Company continued to have new projects going into mass production which were design-wins of the prior years. During the second quarter, sales into automotive sector already accounted for more than 19% of its total driver IC sales and close to 16% of its total revenues. On top of the world’s first TDDI projects for automotives during the first quarter, Himax’s team further successfully added AMOLED design-wins during the second quarter. The Company has achieved a distant number one market share position thanks to its superior product quality, service and stable delivery. Q3 revenue in this segment is set to grow around 20% sequentially.

For third quarter small and medium-sized driver IC business, the company expects revenue to decline mid single digit sequentially.

Non-Driver Product CategoriesThe non-driver IC business segment has been the Company’s most exciting growth area and a differentiator for Himax in the past few years.

3D Sensing SolutionsSince the Company announced 3D sensing as one of Himax’s long term growth initiatives in 2017, 3D sensing, led by Apple’s iPhone X, is gradually becoming a new industry trend as major Android smartphone makers beginning to integrate it into flagship models, although most of such projects are still in development stage. Leading Android smartphone makers are exploring various 3D sensing technologies, namely structured light, active stereo camera (ASC) and, to a lesser extent, time-of-flight (ToF), trying to strike a good balance of cost, specifications and application. More software players are entering the ecosystem to develop 3D sensing applications beyond the existing applications, namely facial recognition, online payment and camera performance enhancement. Being a leading player in the 3D sensing space, Himax is in partnership with several leading smartphone names to enable their 3D sensing by providing optics, projector or total solution, depending on the customer’s needs and their in-house capabilities. The projects Himax is involved in cover all the three types of 3D sensing technologies mentioned above. These efforts will facilitate a broader adoption of 3D sensing on Android smartphone starting 2019. The Company’s goal is to ensure that the smartphones backed by Himax 3D sensing technology will deliver the industry’s highest standard in all of 3D depth accuracy, indoor/outdoor sensitivity, power consumption, size, data security and eye safety.

SLiM™, Himax’s structured light 3D sensing hardware total solution which the Company jointly announced with Qualcomm in last August, targets premium smartphone market. The Qualcomm/Himax solution brings together Qualcomm’s industry leading 3D algorithm with Himax’s cutting-edge design and manufacturing capabilities in optics, NIR sensors, and ASIC, as well as the Company’s unique know-how in 3D sensing system integration. It is by far the highest quality 3D sensing total solution available for the Android market right now. At present, Himax is working with customers who are targeting to bring new 3D sensing applications to smartphone, on top of facial unlock and online payment. The Company is now targeting the end of the year or early 2019 for shipment to the customers for their product launch in first half 2019, although the actual shipment date will ultimately be dictated by end customers. Another noteworthy update is that its SLiM™ total solution can work on Qualcomm’s high end mobile platforms now, as opposed to being limited to only the premium Snapdragon platform when Himax first launched the technology, thereby lowering the total cost barrier of 3D sensing.

The Company’s ASC 3D sensing solution, targeting mass market smartphone models, achieved a significant milestone during the second quarter. While structured light 3D sensing offers outstanding depth precision for its complex projector design, ASC 3D sensing can also enable facial recognition with a simpler projector. While it is somehow constrained by its limited depth precision, it is a lower cost alternative for face authentication and enjoys better software readiness since it is building on the existing dual camera ecosystem. Himax is working with top tier smartphone makers and leading platform partners concurrently on multiple projects. Early shipment is targeted to begin toward the end of the year with major ramp in 2019, although the actual shipment date will ultimately be dictated by end customers. The Company expects more design-wins in the coming months. It appears that ASC 3D sensing, with its cost advantage and the existing dual camera ecosystem, has a better chance of accelerating 3D sensing adoption for facial recognition on Android smartphone market during 2019.

WLOAs anticipated, the shipment volume to the Company’s WLO customer for the second quarter was a lot higher versus that of the first quarter and its WLO capacity utilization improved subsequently. Himax expects the shipment for the second half to increase significantly versus that of the first half. The overall 2018 shipment will increase considerably year-over-year. Meanwhile, the Company is encouraged by the progress of its new R&D projects with the said customer for their next generation products centering around its exceptional design know-how and mass production expertise in WLO technology. Himax is very excited about the significant growth opportunities of these projects.

While 3D sensing is the top priority of the Company’s WLO business at present, Himax also has engineering collaboration with select world-class technology leaders to develop wave-guide for AR glasses and micro displays using its advanced WLO technology. Himax expects to kick off new R&D projects during the third quarter.

CAPEXThe Company announced the increase of the Phase I capital expenditure budget, which is on top of its regular capex for the IC design business, from $80 million to $105 million in early 2018. The majority of the Phase I investment is going to land and building, new equipment for the WLO anchor customer, and an initial capacity of 2 million units per month for 3D sensing. Of the $105 million budget, $33 million has been paid out in 2017, followed by $17.5 million made in the first quarter 2018 and another $15.2 million in the second quarter. The payment for the remaining $39.3 million is to be made throughout the rest of 2018. With the anticipation of broader 3D sensing adoption in 2019, Himax expects to further expand production capacity towards the end of the second half. Kick-off timing and amount of the Phase II investment is still being evaluated, depending on the customers’ projected volume and timetable.

As the Company mentioned in the previous earnings calls, the capex budget will be funded through its internal resources and banking facilities. Himax has more than sufficient banking facilities with favorable cost for such capex budget and will start to draw down some of them in Q3 2018.

CMOS Image SensorHimax has been working with an industry leading fingerprint solution provider to develop an under-display optical fingerprint product in the last two years, targeting smartphones using OLED displays. Himax provides a customized low-power image sensor in the solution. The Company is pleased to announce that the solution has entered into mass production with a major Android smartphone OEM for their new flagship model with shipment expected in the coming months. The CMOS image sensor used in the solution will have a notably higher ASP than the Company’s traditional display driver IC products.

On other CMOS image sensor business update, Himax continues to make great progress with its two machine vision sensor product lines, namely, near infrared (“NIR”) sensor and Always-on-Sensor (“AoSTM”). NIR sensor is a critical part for both of our structured light and ASC 3D sensing solutions. The Company expects significant growth in its CMOS image sensor business as 3D sensing shipment gets started. On the AoSTM product line, the acquisition of Emza enables Himax to be uniquely positioned to provide ultra-low power imaging sensing solutions, leveraging Himax’s industry leading super low power CIS design and Emza’s unique AI-based computer vision algorithm. Himax is pleased with the status of engagement with leading players in areas such as connected home, smart building and security, all of which new frontiers for Himax.

For traditional human vision segments, the Company sees strong demands in laptop and increasing shipment for multimedia applications such as car recorders, surveillance, drones, home appliances, and consumer electronics, among others.

LCOSHimax’s main focus areas are AR goggle devices and head-up-displays (HUD) for automotives. While AR will take a few years to fully realize its market potential, the Company has seen many companies, be the top name multinationals or new start-ups, invest heavily to develop the ecosystem -- applications, software, operating system, system electronics, and optics. Himax is slated to kick off another AR goggle project with tailor-made micro display for a tier-1 tech name during the third quarter. In addition, the Company continues to make great progress in developing high-end holographic head-up display for automotives. Timing for such revenue contribution would be 2019 the earliest.

For non-driver IC business, the Company expects revenue to increase around 15% sequentially in the third quarter driven by WLO shipment.

Third Quarter 2018 GuidanceThe Company is providing the following financial guidance for the third quarter of 2018:

Net Revenue: To be around flat sequentially Gross Margin: To be around 22.5%, depending on final product mix IFRS EPS: To be around -1.0 cent per diluted ADS Non-IFRS EPS(1): To be around 1.5 cents per diluted ADS (1)Non-IFRS EPS excludes share-based compensation and acquisition-related charges

As the Company has done in the past, its third quarter IFRS earnings per diluted ADS guidance has taken into account its expected 2018 grant of restricted share units, or RSUs, to the team at the end of September. The 2018 RSUs, subject to its Board approval, is now assumed to be around $4.5 million, almost all of which, or 2.1 cents per diluted ADS, will be vested and expensed immediately on September 30th, the grant date. In comparison, the 2017 RSUs totaled $6.5 million, out of which $6.1 million was vested immediately. The grant of RSUs would lead to higher third quarter IFRS operating expenses compared to the other quarters of the year.

The Company’s bottom line has been substantially affected by the drastic increase of R&D expenses since some two years ago when Himax decided to enter into a number of new areas, something the Company brought up to the market’s attention repeatedly before. However, the Company believes its operation will start to be out of the trough starting from the third quarter, initially driven by the anticipated ramping of the new foundry for the TDDI product line and, thereafter, shipment of 3D sensing products in next year. 3D sensing, in particular, will represent a paradigm shift in the Company’s business when it starts to achieve a broader market adoption.

HIMAX TECHNOLOGIES SECOND QUARTER 2018 EARNINGS CONFERENCE CALL

DATE: Thursday, August 9, 2018 TIME: U.S.8:00 a.m. EDT Taiwan 8:00 p.m. DIAL IN: U.S. +1 (866) 444-9147 INTERNATIONAL +1 (678) 509-7569 CONFERENCE ID: 7399640 WEBCAST: https://edge.media-server.com/m6/p/hzg3keuv

A replay of the call will be available beginning two hours after the call through 11:30 a.m. US EDT on August 16, 2018 (11:30 p.m. Taiwan time, August 16, 2018) on www.himax.com.tw and by telephone at +1 (855) 859-2056 (US Domestic) or +1 (404) 537-3406 (International). The conference ID number is 7399640. This call is being webcast by Nasdaq and can be accessed by clicking on this link or Himax’s website, where the webcast can be accessed through August 8, 2019.

About Himax Technologies, Inc.

Himax Technologies, Inc. (NASDAQ:HIMX) is a fabless semiconductor solution provider dedicated to display imaging processing technologies. Himax is a worldwide market leader in display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices. Additionally, Himax designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration (TDDI) single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions, silicon IPs and LCOS micro-displays for augmented reality (AR) devices and heads-up displays (HUD) for automotive. The Company also offers digital camera solutions, including CMOS image sensors and wafer level optics for AR devices, 3D sensing and machine vision, which are used in a wide variety of applications such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, medical devices and Internet of Things. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,200 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, Israel and the US. Himax has 2,997 patents granted and 442 patents pending approval worldwide as of June 30, 2018. Himax has retained its position as the leading display imaging processing semiconductor solution provider to consumer electronics brands worldwide.

http://www.himax.com.tw

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, 2017 filed with the SEC, as may be amended.

Company Contacts:

Jackie Chang, CFOHimax Technologies, Inc.Tel: +886-2-2370-3999 Ext.22300 OrUS Tel: +1-949-585-9838 Ext.252Fax: +886-2-2314-0877Email: jackie_chang@himax.com.twwww.himax.com.tw

Ophelia Lin, Investor RelationsHimax Technologies, Inc.Tel: +886-2-2370-3999 Ext.22202Fax: +886-2-2314-0877 Email: ophelia_lin@himax.com.twwww.himax.com.tw

Ken Liu, Investor RelationsHimax Technologies, Inc.Tel: +886-2-2370-3999 Ext.22513Fax: +886-2-2314-0877 Email: ken_liu@himax.com.twwww.himax.com.tw

Investor Relations - US RepresentativeGreg Falesnik, Managing DirectorMZ North AmericaTel: +1-212-301-7130Email: greg.falesnik@mzgroup.uswww.mzgroup.us

-Financial Tables-

Himax Technologies, Inc. Unaudited Condensed Consolidated Statements ofProfit orLoss (These interim financials do not fully comply withIFRSbecause they omit all interim disclosure required byIFRS) (Amounts in Thousands of U.S. Dollars, ExceptShare andPer Share Data) Three Months Three Months Ended EndedJune 30, March31, 2018 2017 2018 - ------- - - ------- - - ------- - Revenues $ 181,365 $ 151,730 $ 162,851 Costs and expenses: Cost of revenues 139,571 115,556 126,254 Research and development 30,444 27,923 30,040 General and administrative 5,632 4,521 4,906 Sales and marketing 5,218 4,647 4,895 - ------- - - ------- - - ------- - Total costs and expenses 180,865 152,647 166,095 - ------- - - ------- - - ------- - Operating income(loss) 500 (917 ) (3,244 ) - ------- - - ------- - - ------- - Non operatingincome (loss): Interest income 672 619 549 Changes in fair value of financial assets at fair value through profit (25 ) 37 1 or loss Share of losses of associates (1,099 ) (697 ) (844 ) Foreign currency exchange gains (losses), net 242 (23 ) (258 ) Finance costs (265 ) (190 ) (252 ) Other income (loss), net 1,677 (41 ) 4 - ------- - - ------- - - ------- - 1,202 (295 ) (800 ) - ------- - - ------- - - ------- - Profit (loss) before income taxes 1,702 (1,212 ) (4,044 ) Income tax expense (benefit) 306 (179 ) (728 ) - ------- - - ------- - - ------- - Profit (loss) for the period 1,396 (1,033 ) (3,316 ) Loss attributable to noncontrolling interests 650 353 487 - ------- - - ------- - - ------- - Profit (loss) attributable to Himax Technologies, Inc. stockholders $ 2,046 $ (680 ) $ (2,829 ) - ------- - - ------- - - ------- - Basic earnings (loss) per ADS attributable to Himax Technologies, Inc. $ 0.012 $ (0.004 ) $ (0.016 ) stockholders - ------- - - ------- - - ------- - Diluted earnings (loss) per ADS attributable to Himax Technologies, Inc. $ 0.012 $ (0.004 ) $ (0.016 ) stockholders - ------- - - ------- - - ------- - Basic Weighted Average Outstanding ADS 172,499 172,399 172,499 Diluted Weighted Average Outstanding ADS 172,539 172,462 172,536

Himax Technologies, Inc. Unaudited Condensed Consolidated Statements of Profit or Loss (Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data) SixMonths EndedJune 30, 2018 2017 - ------- - - ------- - Revenues $ 344,216 $ 306,940 Costs and expenses: Cost of revenues 265,825 234,865 Research and development 60,484 53,256 General and administrative 10,538 9,122 Sales and marketing 10,113 9,016 - ------- - - ------- - Total costs and expenses 346,960 306,259 - ------- - - ------- - Operating income(loss) (2,744 ) 681 - ------- - - ------- - Non operatingincome (loss): Interest income 1,221 1,162 Changes in fair value of financial assets at fair value through profit or loss (24 ) 107 Share of losses of associates (1,943 ) (831 ) Foreign currency exchange losses, net (16 ) (1,149 ) Finance costs (517 ) (404 ) Other income, net 1,681 7 - ------- - - ------- - 402 (1,108 ) - ------- - - ------- - Loss before income taxes (2,342 ) (427 ) Income tax benefit (422 ) (57 ) - ------- - - ------- - Loss for the period (1,920 ) (370 ) Loss attributable to noncontrolling interests 1,137 906 - ------- - - ------- - Profit (loss) attributable to Himax Technologies, Inc. stockholders $ (783 ) $ 536 - ------- - - ------- - Basic earnings (loss) per ADS attributable to Himax Technologies, Inc. $ (0.005 ) $ 0.003 stockholders - ------- - - ------- - Diluted earnings (loss) per ADS attributable to Himax Technologies, Inc. $ (0.005 ) $ 0.003 stockholders - ------- - - ------- - Basic Weighted Average Outstanding ADS 172,499 172,399 Diluted Weighted Average Outstanding ADS 172,538 172,444

Himax Technologies, Inc. Unaudited Supplemental Financial Information (Amounts in Thousands of U.S. Dollars) Three The amount of share-based compensation included in applicablestatements of Three Months Months profit or losscategories is summarized as follows: EndedJune 30, EndedMarc h 31, 2018 2017 2018 - ---- - - ---- - - ---- - Share-based compensation Cost of revenues $ 12 $ 25 $ 12 Research and development 58 139 57 General and administrative 9 37 9 Sales and marketing 14 30 13 Income tax benefit (13 ) (38 ) (12 ) - ---- - - ---- - - ---- - Total $ 80 $ 193 $ 79 - ---- - - ---- - - ---- - The amount ofacquisition-related chargesincluded in applicablestatements of profit or losscategories is summarized as follows: Acquisition-related charges Research and development $ 246 $ 246 $ 246 Income tax benefit (71 ) (98 ) (71 ) - ---- - - ---- - - ---- - Total $ 175 $ 148 $ 175 - ---- - - ---- - - ---- -

Himax Technologies, Inc. Unaudited Supplemental Financial Information (Amounts in Thousands of U.S. Dollars) The amount of share-based compensation included in applicablestatements of profit or SixMonths losscategories is summarized as follows: EndedJune 30, 2018 2017 - ---- - - ---- - Share-based compensation Cost of revenues $ 24 $ 50 Research and development 115 278 General and administrative 18 75 Sales and marketing 27 58 Income tax benefit (25 ) (74 ) - ---- - - ---- - Total $ 159 $ 387 - ---- - - ---- - The amount ofacquisition-related chargesincluded in applicablestatements of profit or losscategories is summarized as follows: Acquisition-related charges Research and development $ 492 $ 492 Income tax benefit (142 ) (197 ) - ---- - - ---- - Total $ 350 $ 295 - ---- - - ---- -

Himax Technologies, Inc. IFRSUnaudited Condensed ConsolidatedStatementsofFinancialPosition (Amounts in Thousands of U.S. Dollars) June 30, March 31, June 30, 2018 2018 2017 Assets Current assets: Cash and cash equivalents $ 114,480 $ 139,806 $ 177,206 Financial assets at amortized cost 12,154 11,753 5,306 Financial assets at fair value through profit or loss 66 361 3,357 Accounts receivable, net 176,286 166,603 164,516 Inventories 142,077 147,962 147,680 Income taxes receivable 45 45 41 Restricted deposit 147,000 147,000 107,201 Other receivable from related parties 2,803 3,515 4,150 Other current assets 18,743 19,609 12,288 - ------- - - ------- - - ------- - Total current assets 613,654 636,654 621,745 - ------- - - ------- - - ------- - Financial assets at fair value through profit or loss 1,574 1,600 10,562 Financial assets at fair value through other 802 1,522 1,680 comprehensive income Equity method investments 9,964 9,905 4,055 Property, plantand equipment, net 106,041 95,953 53,852 Deferred taxassets 7,834 8,199 7,882 Goodwill 28,138 28,138 28,138 Other intangible assets, net 13,525 3,027 3,340 Restricted deposit 460 481 460 Other non-current assets 3,660 8,579 4,684 - ------- - - ------- - - ------- - 171,998 157,404 114,653 - ------- - - ------- - - ------- - Total assets $ 785,652 $ 794,058 $ 736,398 - ------- - - ------- - - ------- - Liabilities andEquity Current liabilities: Short-term borrowings $ 147,000 $ 147,000 $ 107,000 Financial liability at amortized cost 5,003 4,920 - Accounts payable 128,862 134,970 113,670 Income taxes payable 1,872 4,920 8,304 Other payable to related party 2,200 1,900 - Other current liabilities 58,113 44,701 72,335 - ------- - - ------- - - ------- - Total current liabilities 343,050 338,411 301,309 - ------- - - ------- - - ------- - Financial liabilityat amortized cost - - 4,678 Net defined benefit liabilities 1,125 1,178 1,113 Deferred tax liabilities 2,795 106 1,368 Other non-current liabilities 2,888 3,672 1,436 - ------- - - ------- - - ------- - 6,808 4,956 8,595 - ------- - - ------- - - ------- - Total liabilities 349,858 343,367 309,904 - ------- - - ------- - - ------- - Equity Ordinary shares 107,010 107,010 107,010 Additional paid-in capital 106,644 104,533 103,913 Treasury shares (8,878 ) (8,878 ) (9,020 ) Accumulated other comprehensive income (1,497 ) (322 ) (1,025 ) Retained earnings 235,410 250,574 226,065 - ------- - - ------- - - ------- - Equity attributable to owners of HimaxTechnologies, Inc. 438,689 452,917 426,943 Noncontrolling interests (2,895 ) (2,226 ) (449 ) - ------- - - ------- - - ------- - Totalequity 435,794 450,691 426,494 - ------- - - ------- - - ------- - Total liabilities and equity $ 785,652 $ 794,058 $ 736,398 - ------- - - ------- - - ------- -

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) Three Three Months Months EndedJune 30, Ended March31, 2018 2017 2018 - ------- - - ------- - - ------- - Cash flows from operating activities: Profit (loss) for the period $ 1,396 $ (1,033 ) $ (3,316 ) Adjustments for: Depreciation and amortization 5,180 3,471 5,098 Bad debt expense 190 - - Share-based compensation expenses 93 232 91 Gain on re-measurement of the pre-existing relationships in a business (1,662 ) - - combination Changes in fair value of financial assets at fair value through profit 25 (37 ) (1 ) or loss Interest income (672 ) (619 ) (549 ) Finance costs 265 190 252 Income tax expense (benefit) 306 (179 ) (728 ) Share of losses of associates 1,099 697 844 Inventories write downs 3,567 2,487 2,954 Foreign currency exchange losses (gains) of financial assets 340 - (222 ) - ------- - - ------- - - ------- - 10,127 5,209 4,423 Changes in: Accounts receivable (9,872 ) 4,621 22,171 Inventories 2,318 (1,907 ) (15,716 ) Other receivable from related parties (8 ) - (15 ) Other current assets 1,205 1,611 (1,672 ) Accounts payable (6,108 ) (2,271 ) (4,963 ) Accounts payable to related party - (1,098 ) - Other payable to related party 300 - (300 ) Net defined benefit liabilities (53 ) (2 ) 26 Other current liabilities 1,318 100 (1,629 ) Other non-current liabilities 167 (509 ) (7 ) - ------- - - ------- - - ------- - Cash generated from operating activities (606 ) 5,754 2,318 Interest received 1,014 1,110 166 Interest paid (182 ) (113 ) (170 ) Income tax paid (3,032 ) (7,986 ) (37 ) Net cash provided by (used in) operating activities (2,806 ) (1,235 ) 2,277 - ------- - - ------- - - ------- - Cash flows from investing activities: Acquisitions of property, plant and equipment (17,745 ) (11,701 ) (18,550 ) Acquisitions of intangible assets (109 ) (218 ) (94 ) Acquisitions of financial assets at amortized cost (1,135 ) (303 ) (1,897 ) Proceeds from disposals of financial assets at amortized cost 303 298 754 Acquisitions of financial assets at fair value through profit or loss (7,445 ) (15,676 ) (4,330 ) Proceeds from disposals of financial assets at fair value through 7,693 16,199 26,506 profit or loss Acquisition of business - - (700 ) Acquisition of a subsidiary, net of cash used (3,301 ) - - Acquisition of equity method investments - (2,230 ) - Decrease (increase) in refundable deposits 6 284 (1 ) Releases (pledges) of restricted deposit 21 (115 ) (11 )

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) Three Three Months Months EndedJune 30, EndedMarch 31, 2018 2017 2018 - ------- - - ------- - - ------- - Cash paid for loan made to related parties $ (530 ) $ - $ (250 ) Cash received from loan made to related party - 1,500 - Income tax paid for disposal of financial assets at fair value through - - (2,187 ) profit or loss - ------- - - ------- - - ------- - Net cash used in investing activities (22,242 ) (11,962 ) (760 ) - ------- - - ------- - - ------- - Cash flows from financing activities: Proceeds from issuance of new shares by subsidiary - - 11 Acquisitions of noncontrolling interests - (1 ) - Proceeds from short-term borrowings 27,000 27,000 - Repayments of short-term borrowings (27,000 ) (27,000 ) - Net cashprovided by (used in) financing activities - (1 ) 11 - ------- - - ------- - - ------- - Effect offoreign currencyexchange rate changes on cash and cash (278 ) 59 255 equivalents - ------- - - ------- - - ------- - Net increase (decrease) in cash and cash equivalents (25,326 ) (13,139 ) 1,783 Cash and cash equivalents at beginning of period 139,806 190,345 138,023 Cash and cash equivalents at end of period $ 114,480 $ 177,206 $ 139,806 - ------- - - ------- - - ------- -

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) SixMonths EndedJune 30, 2018 2017 - ------- - - ------- - Cash flows from operating activities: Loss for the period $ (1,920 ) $ (370 ) Adjustments for: Depreciation and amortization 10,278 6,910 Bad debt expense 190 - Share-based compensation expenses 184 461 Gain on disposals of property, plant and equipment - (28 ) Gain on re-measurement of the pre-existing relationships in a business (1,662 ) - combination Changes in fair value of financial assets at fair value through profit or loss 24 (107 ) Interest income (1,221 ) (1,162 ) Finance costs 517 404 Income tax benefit (422 ) (57 ) Share of losses of associates 1,943 831 Inventories write downs 6,521 5,534 Foreign currency exchange losses of financial assets 118 - - ------- - - ------- - 14,550 12,416 Changes in: Accounts receivable 12,299 28,094 Inventories (13,398 ) (3,466 ) Other receivable from related parties (23 ) - Other current assets (467 ) 733 Accounts payable (11,071 ) (28,599 ) Accounts payable to related party - (576 ) Net defined benefit liabilities (27 ) 39 Other current liabilities (311 ) 2,727 Other non-current liabilities 160 (14 ) - ------- - - ------- - Cash generated from operating activities 1,712 11,354 Interest received 1,180 1,160 Interest paid (352 ) (250 ) Income tax paid (3,069 ) (8,039 ) Net cashprovided by(used in) operating activities (529 ) 4,225 - ------- - - ------- - Cash flows from investing activities: Acquisitions of property, plant and equipment (36,295 ) (13,699 ) Proceeds from disposals of property, plant and equipment - 28 Acquisitions of intangible assets (203 ) (229 ) Acquisitions of financial assets at amortized cost (3,032 ) (757 ) Proceeds from disposals of financial assets at amortized cost 1,057 744 Acquisitions of financial assets at fair value through profit or loss (11,775 ) (20,323 ) Proceeds from disposals of financial assets at fair value through profit or loss 34,199 22,273 Acquisition of business (700 ) - Acquisition of a subsidiary, net of cash used (3,301 ) - Acquisition of equity method investments - (2,230 ) Decrease (increase) in refundable deposits 5 (26 ) Releases (pledges) of restricted deposit 10 (337 )

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) SixMonths EndedJune 30, 2018 2017 - ------- - - ------- - Cash paid for loan made to related parties $ (780 ) $ - Cash received from loan made to related party - 3,000 Income tax paid for disposal of financial assets at fair value through profit or (2,187 ) - loss - ------- - - ------- - Net cash used in investing activities (23,002 ) (11,556 ) - ------- - - ------- - Cash flows from financing activities: Proceeds from issuance of new shares by subsidiary 11 - Proceeds from disposals of subsidiary shares to noncontrolling interests by Himax - 4 Imaging, Inc. Acquisitions of noncontrolling interests - (1 ) Release of restricted deposit - 31,000 Proceeds from short-term borrowings 27,000 54,161 Repayments of short-term borrowings (27,000 ) (85,161 ) Net cashprovided by financing activities 11 3 - ------- - - ------- - Effect offoreign currencyexchange rate changes on cash and cash equivalents (23 ) 82 - ------- - - ------- - Netdecreasein cash and cash equivalents (23,543 ) (7,246 ) Cash and cash equivalents at beginning of period 138,023 184,452 Cash and cash equivalents at end of period $ 114,480 $ 177,206 - ------- - - ------- -

Himax Technologies, Inc. Non-IFRSUnaudited Supplemental Data – Reconciliation Schedule (Amounts in Thousands of U.S. Dollars) Gross Margin, Operating Margin and Net Margin Excluding Share-Based Compensation and Acquisition-Related Charges: Three Three Months Months EndedJune 30, Ended March 31, 2018 2017 2018 - ------- - - ------- -- - ------- -- Revenues $ 181,365 $ 151,730 $ 162,851 Gross profit 41,794 36,174 36,597 Add: Share-based compensation – cost of revenues 12 25 12 Gross profit excluding share-based compensation 41,806 36,199 36,609 Gross margin excluding share-based compensation 23.1 % 23.9 % 22.5 % Operating income (loss) 500 (917 ) (3,244 ) Add: Share-based compensation 93 231 91 Operating income (loss) excluding share-based compensation 593 (686 ) (3,153 ) Add: Acquisition-related charges –intangible assets amortization 246 246 246 Operating income (loss) excluding share-based compensation and 839 (440 ) (2,907 ) acquisition-related charges Operating margin excluding share-based compensation and 0.5 % (0.3 %) (1.8 %) acquisition-related charges Profit (loss) attributable to Himax Technologies, Inc. stockholders 2,046 (680 ) (2,829 ) Add: Share-based compensation, net of tax 80 193 79 Add: Acquisition-related charges, net of tax 175 148 175 Profit (loss) attributable to Himax Technologies, Inc. stockholders 2,301 (339 ) (2,575 ) excluding share-based compensation and acquisition-related charges Net margin attributable to Himax Technologies, Inc. stockholders 1.3 % (0.2 %) (1.6 %) excluding share-based compensation and acquisition-related charges *Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues *Operating margin excluding share-based compensation and acquisition-related charges equals operating income (loss) excluding share-based compensation and acquisition-related charges divided by revenues *Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges equals profit (loss) attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges divided by revenues

Himax Technologies, Inc. Non-IFRSUnaudited Supplemental Data – Reconciliation Schedule (Amounts in Thousands of U.S. Dollars) Gross Margin, Operating Margin and Net Margin Excluding Share-Based Compensation and Acquisition-Related Charges: SixMonths EndedJune 30, 2018 2017 - ------- -- - ------- - Revenues $ 344,216 $ 306,940 Gross profit 78,391 72,075 Add: Share-based compensation – cost of revenues 24 50 Gross profit excluding share-based compensation 78,415 72,125 Gross margin excluding share-based compensation 22.8 % 23.5 % Operating income (loss) (2,744 ) 681 Add: Share-based compensation 184 461 Operating income (loss) excluding share-based compensation (2,560 ) 1,142 Add: Acquisition-related charges –intangible assets amortization 492 492 Operating income (loss) excluding share-based compensation and (2,068 ) 1,634 acquisition-related charges Operating margin excluding share-based compensation and acquisition-related (0.6 %) 0.5 % charges Profit (loss) attributable to Himax Technologies, Inc. stockholders (783 ) 536 Add: Share-based compensation, net of tax 159 387 Add: Acquisition-related charges, net of tax 350 295 Profit (loss) attributable to Himax Technologies, Inc. stockholders excluding (274 ) 1,218 share-based compensation and acquisition-related charges Net margin attributable to Himax Technologies, Inc. stockholders excluding (0.1 %) 0.4 % share-based compensation and acquisition-related charges *Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues *Operating margin excluding share-based compensation and acquisition-related charges equals operating income (loss) excluding share-based compensation and acquisition-related charges divided by revenues *Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges equals profit (loss) attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges divided by revenues

Diluted Earnings (Loss)Per ADS Attributable to Himax Technologies, Inc. Stockholders Excluding Share-based Compensation and Acquisition-Related Charges: (Amounts in U.S. Dollars) ThreeMon SixMonths ths EndedJune30 EndedJun , e30, 2018 2018 - ----- ------- - Diluted IFRS earnings (loss) per ADS attributable to Himax Technologies, Inc. stockholders $ 0.012 ($0.005 ) Add: Share-based compensation per ADS $ 0.000 $0.001 Add: Acquisition-related charges per ADS $ 0.001 $0.002 Diluted non-IFRS earnings (loss) per ADS attributable to Himax Technologies, Inc. $ 0.013 ($0.002 ) stockholders excluding share-based compensation and acquisition-related charges

Numbers do not add up due to rounding

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidatedstatement offinancialposition as ofJune30, 2017 (Amounts in Thousands of U.S. Dollars) U.S. GAAP Effect of Transition IFRS to IFRS --------------------------------------- --------------------- ---------------------------------------- Recogniti Items Amount on Presentation Amount Items Note Differenc Difference e ---------------------------- --------- -------- ----------- --------- ----------------------------- ---- Assets Assets Current assets: Current assets: Cash and cash equivalents $ 177,206 $ - $ - $ 177,206 Cash and cash equivalents Investments in marketable securities 8,663 - (8,663 ) - A-1 available-for-sale - - - 5,306 5,306 Financial assets at amortized A-1 - cost - - 3,357 3,357 Financial assets at fair A-1 - value through profit or loss Accounts receivable, less allowance for doubtful 163,243 - 1,273 164,516 B accounts, sales returns and discounts Accounts receivable, net Inventories 147,680 - - 147,680 Inventories - - - 41 41 Income taxes receivable Restricted cash, cash equivalents and marketable 107,201 - - 107,201 securities Restricted deposit Other receivables from 4,150 - - 4,150 Other receivable from related related parties parties Prepaid expenses and other 12,329 - (41 ) 12,288 current assets Other current assets Total current assets 620,472 - 1,273 621,745 Total current assets ------- ---- - ------- - ------- Investment in non-marketable 12,242 - (12,242 ) - A-2 equity securities - - - 10,562 10,562 Financial assets at fair A-2 value through profit or loss Financial assets at fair - - - 1,680 1,680 value through other A-2 comprehensive income Equity method investments 4,055 - - 4,055 Equity method investments Property, plant and 57,813 - (3,961 ) 53,852 Property, plant and C equipment, net equipment, net Deferred tax assets 6,671 (56 ) 1,267 7,882 Deferred tax assets D,F Goodwill 28,138 - - 28,138 Goodwill Other intangible assets, net 2,675 - 665 3,340 Other intangible assets, net C Restricted marketable 460 - - 460 Restricted deposit securities Other assets 1,478 (90 ) 3,296 4,684 Other non-current assets C,F 113,532 (146 ) 1,267 114,653 ------- ---- - ------- - ------- Total assets $ 734,004 $ (146 ) $ 2,540 $ 736,398 Total assets ------- ---- - ------- - -------

(Continued)

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidatedstatement offinancialposition as ofJune30, 2017 (Amounts in Thousands of U.S. Dollars) U.S. GAAP Effect of Transition IFRS to IFRS -------------------------------------- ---------------------- --------------------------------------- Recognition Presentatio Items Amount n Amount Items Note Difference Difference ------------------------- ----------- ---------- ---------- ----------- -------------------------- ----- Liabilities, Redeemable noncontrolling interest Liabilities andEquity and Equity Current liabilities: Current liabilities: Short-term debt $ 107,000 $ - $ - $ 107,000 Short-term borrowings Accounts payable 113,670 - - 113,670 Accounts payable Income taxes payable 7,778 - 526 8,304 Income taxes payable E Other accrued expenses and other current 71,062 - 1,273 72,335 B liabilities Other current liabilities Total current liabilities 299,510 - 1,799 301,309 Total current liabilities ------- - ------ - ------ - ------- - - - 4,678 - 4,678 Financial liabilityat A-3 amortized cost - - (15 ) 1,128 1,113 Net defined benefit F liabilities - - - 1,368 1,368 Deferred tax liabilities D Other liabilities 3,191 - (1,755 ) 1,436 Other non-current D,E,F liabilities - - - - 3,191 4,663 741 8,595 ------- ------ ------ ------- Total liabilities 302,701 4,663 2,540 309,904 Total liabilities - - - - Redeemable noncontrolling 3,656 (3,656 ) - - - A-3 interest ------- - ------ - ------ - ------- - Equity Equity HimaxTechnologies, HimaxTechnologies, Inc.stockholders’ equity: Inc.stockholders’ equity: Ordinary shares 107,010 - - 107,010 Ordinary shares Additional paid-in 106,837 (2,924 ) - 103,913 G capital Additional paid-in capital Treasury shares (9,020 ) - - (9,020 ) Treasury shares Accumulated other (2,041 1,016 - (1,025 Accumulated other F comprehensive loss ) ) comprehensive income Unappropriated retained 225,312 753 - 226,065 earnings Retained earnings ------- - ------ - ------ - ------- - Equity attributable to Himax Technologies, Inc. 428,098 (1,155 ) 426,943 owners of H stockholders’equity - HimaxTechnologies, Inc. Noncontrolling interests (451 ) 2 - (449 ) Noncontrolling interests F Total equity 427,647 (1,153 ) - 426,494 Total equity ------- - ------ - ------ - ------- - Total liabilities, redeemable noncontrolling $ 734,004 $ (146 ) $ 2,540 $ 736,398 Total liabilities and interestand equity equity ------- - ------ - ------ - ------- -

(Concluded)

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidated statement of profit or loss for the three months endedJune30, 2017 (Amounts in Thousands of U.S. Dollars) U.S. GAAP Effect of Transition to IFRS IFRS ------------------------------------ ------------------------ -------------------------------------- Recognit Items Amount ion Presentation Amount Items Note Differen Difference ce ---------------------- ----------- ------- ------------- ----------- ------------------------ ---- Revenues $ 151,730 $ - $ - $ 151,730 Revenues Costs and expenses: Costs and expenses: Cost of revenues 115,556 - - 115,556 Cost of revenues Research and 27,921 2 - 27,923 G development Research and development General and 4,552 (31 ) - 4,521 General and G administrative administrative Sales and marketing 4,641 6 - 4,647 Sales and marketing G Total costs and 152,670 (23 ) - 152,647 expenses Total costs and expenses ------- - --- - - --------- ------- - Operatingloss (940 ) 23 - (917 ) Operatingloss ------- - --- - - --------- ------- - Non operating income Non operating income (loss): (loss): Interest income 619 - - 619 Interest income Changes in fair value of 37 - - 37 financial assets at fair Gain on sale of value through profit or securities, net loss Equity in losses of equity method (697 ) - - (697 ) Share of losses of investees associates Foreign currency (27 ) 4 - (23 ) Foreign currency F exchange losses, net exchange losses, net Interest expense (113 ) (77 ) - (190 ) Finance costs A-3 Other losses, net (41 ) - - (41 ) Other losses, net ------- - --- - - --------- ------- - (222 ) (73 ) - (295 ) ------- - --- - - --------- ------- - Lossbefore income (1,162 ) (50 ) - (1,212 ) Lossbefore income taxes taxes Income tax benefit (179 ) - - (179 ) Income tax benefit F ------- - --- - - --------- ------- - Netloss (983 ) (50 ) - (1,033 ) Lossfor the period Net loss attributable Loss attributable to to noncontrolling 354 (1 ) - 353 noncontrolling interests F interests ------- - --- - - --------- ------- - Netlossattributable to Lossattributable to Himax Technologies, $ (629 ) $ (51 ) $ - $ (680 ) HimaxTechnologies, Inc. Inc. stockholders stockholders ------- - --- - - --------- ------- - Basiclossper ADS Basiclossper ADS attributable to Himax $ (0.004 ) $ (0.004 ) attributable to Himax Technologies, Inc. Technologies, stockholders Inc.stockholders ------- - ------- - Dilutedlossper ADS Dilutedlossper ADS attributable to Himax $ (0.004 ) $ (0.004 ) attributable to Himax Technologies, Inc. Technologies, Inc. stockholders stockholders ------- - ------- - Basic Weighted Average 172,399 172,399 Basic Weighted Average Outstanding ADS Outstanding ADS Diluted Weighted Diluted Weighted Average Average Outstanding 172,462 172,462 Outstanding ADS ADS

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidated statement of profit or loss for thesixmonths endedJune30, 2017 (Amounts in Thousands of U.S. Dollars) U.S. GAAP Effect of Transition to IFRS IFRS ----------------------------------- --------------------------- ------------------------------------ Recogniti Items Amount on Presentation Amount Items Note Differenc Difference e --------------------- ----------- -------- - ------------ ----------- ---------------------- ---- Revenues $ 306,940 $ - $ - $ 306,940 Revenues Costs and expenses: Costs and expenses: Cost of revenues 234,865 - - 234,865 Cost of revenues Research and 53,252 4 - 53,256 Research and G development development General and 9,185 (63 ) - 9,122 General and G administrative administrative Sales and marketing 9,005 11 - 9,016 Sales and marketing G Total costs and 306,307 (48 ) - 306,259 Total costs and expenses expenses ------- - ---- - ------------ ------- - Operating income 633 48 - 681 Operating income ------- - ---- - ------------ ------- - Non operating income Non operating income (loss): (loss): Interest income 1,162 - - 1,162 Interest income Changes in fair value 107 - - of financial assets at Gain on sale of 107 fair value through securities, net profit or loss Equity in losses of equity method (831 ) - - (831 ) Share of losses of investees associates Foreign currency (1,060 ) (89 ) - (1,149 ) Foreign currency F exchange losses, net exchange losses, net Interest expense (250 ) (154 ) - (404 ) Finance costs A-3 Other income, net 7 - - 7 Other income, net ------- (865 ) (243 ) - (1,108 ) ------- - ---- - ------------ ------- - Lossbefore income (232 ) (195 ) - (427 ) Lossbefore income taxes taxes Income tax benefit (58 ) 1 - (57 ) Income tax benefit F ------- - ---- - ------------ ------- - Netloss (174 ) (196 ) - (370 ) Lossfor the period Net loss attributable Loss attributable to to noncontrolling 908 (2 ) - 906 noncontrolling F interests interests ------- - ---- - ------------ ------- - Net income Profit attributable to attributable to Himax $ 734 $ (198 ) $ - $ 536 HimaxTechnologies, Technologies, Inc. Inc. stockholders stockholders ------- - ---- - ------------ ------- - Basic earnings per Basic earnings per ADS ADS attributable to $ 0.004 $ 0.003 attributable to Himax Himax Technologies, Technologies, Inc. stockholders Inc.stockholders ------- - ------- - Diluted earnings per Diluted earnings per ADS attributable to $ 0.004 $ 0.003 ADS attributable to Himax Technologies, Himax Technologies, Inc. stockholders Inc. stockholders ------- - ------- - Basic Weighted Basic Weighted Average Average Outstanding 172,399 172,399 Outstanding ADS ADS Diluted Weighted Diluted Weighted Average Outstanding 172,444 172,444 Average Outstanding ADS ADS

Notes to the reconciliation of the main differences:

A) Financial instruments

Under U.S. GAAP, investment securities consist of investments in marketable securities and investments in non-marketable equity securities. All of our investments in marketable securities are classified as available-for-sale securities and are reported at fair value. Investments in non-marketable equity securities in which we do not have the ability to exercise significant influence over the operating and financial policies of the investee are stated at cost.

Under IFRS, IFRS 9 Financial Instruments includes guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It is effective for annual reporting periods beginning on January 1, 2018. To better reflect the presentation of the consolidated statements of financial position as of June 30, 2018, we reclassified comparative period information as follows:

A-1)

As of June 30, 2017, we had $8,663 thousand reported as investments in marketable securities available-for-sale under U.S. GAAP, that were reclassified to financial assets at amortized cost and financial assets at fair value through profit or loss-current, at amounts of $5,306 thousand and $3,357 thousand, respectively, under IFRS.

A-2)

As of June 30, 2017, we had $12,242 thousand reported as investment in non-marketable equity securities under U.S. GAAP, that were reclassified to financial assets at fair value through profit or loss-noncurrent and financial assets at fair value through other comprehensive income at amounts of $10,562 thousand and $1,680 thousand, respectively, under IFRS.

A-3)

Under U.S. GAAP, we recognized redeemable convertible preferred shares which were issued to a non-controlling shareholder by Himax Display Inc., a consolidated subsidiary, as temporary equity. The redeemable convertible preferred shares were presented as redeemable noncontrolling interest and recognized at fair value.

Under IFRS, we recognized the above-mentioned redeemable convertible preferred shares as financial liability at amortized cost using effective interest method.

As of June 30, 2017, we had $3,656 thousand reported as redeemable noncontrolling interest under U.S. GAAP, that were reclassified to financial liability at amortized cost-noncurrent and recognized interest expense (finance costs) using effective interest method which decreased the retained earnings by $1,022 thousand. After the above adjustments, we had $4,678 thousand reported as financial liability at amortized cost-noncurrent under IFRS.

For the six months and three months ended June 30, 2017, interest expense (finance costs) was adjusted for an increase of $154 thousand and $77 thousand, respectively.

B) Allowance of sales returns and discounts

Under U.S. GAAP, allowance of sales returns and discounts were recognized as a reduction in revenue in the year the related revenue is recognized based on historical experience. The corresponding allowance of sales returns and discounts was presented as a reduction in accounts receivable.

Under IFRS, the allowance of sales returns and discounts is a present obligation with uncertain timing and an amount that arises from past events and is therefore reclassified as provisions.

As of June 30, 2017, the amounts reclassified from allowance of sales returns and discounts to provisions was $1,273 thousand.

C) Property, plant and equipment, net

Under U.S. GAAP, property, plant, and equipment typically consist of software and long-lived tangible assets used to create and distribute an entity's products.

Under IFRS, property, plant and equipment are tangible items. Certain software that is not an integral part of the related hardware and prepayment for equipment not shipped to the factory are reclassified out from property, plant and equipment as they do not meet the definition of property, plant and equipment.

As of June 30, 2017, property, plant and equipment, net of $3,961 thousand were reclassified to other intangible assets, net and other non-current assets at amounts of $665 thousand and $3,296 thousand, respectively.

D) Deferred tax assets and liabilities

Under U.S. GAAP, for a particular tax-paying component of an entity and within a particular tax jurisdiction, all current / non-current deferred tax liabilities and assets are offset and presented as a single amount.

Under IFRS, deferred tax liabilities and assets are offset only if the entity has a legally enforceable right to offset current tax liabilities and assets.

As of June 30, 2017, the amounts reclassified from deferred tax assets to deferred tax liabilities was $1,267 thousand.

E) Income taxes payable

Under U.S. GAAP, income taxes payable are classified as current if cash payment is expected within 12 months; if not, the amount is classified as noncurrent.

Under IFRS, income taxes payable are classified as current unless an unconditional right to defer payment for a period greater than twelve months exists.

As of June 30, 2017, the amounts reclassified from other liabilities to income taxes payable was $526 thousand.

F) Employee benefits

Under U.S. GAAP, actuarial gains and losses arising in the period are recognized immediately in OCI and amortized from accumulated OCI into the profit or loss over the employees’ remaining service period.

Under IFRS, remeasurements of the net defined benefit liability (asset) are recognized in OCI and are not reclassified to profit or loss in a subsequent period.

As of June 30, 2017, net defined benefit assets included in other assets, net defined benefit liabilities, deferred tax assets and remeasurements of the net defined benefit liability or asset related to components of accumulated other comprehensive income were adjusted for a decrease of $90 thousand, $15 thousand, $56 thousand and an increase of $1,016 thousand, respectively.

G) Share-Based Compensation

Under U.S. GAAP, we recognized compensation expense by straight-line method and recognized excess tax benefits from share-based payments.

Under IFRS, we recognized compensation expense by graded vesting and there is no requirement of recognizing excess tax benefits under IFRS.

For the six months and three months ended June 30, 2017, operating expense for share-based compensation was adjusted for a decrease of $48 thousand and $23 thousand, respectively.

H) Reconciliation of equity attributable to Himax from U.S. GAAP to IFRS summarized below:

June30, Note 2017 ----------- ---- Equity attributable to Himax under U.S. GAAP $ 428,098 Financial liability at amortized cost (1,022 ) A-3 Employee benefits (133 ) F - ------- - (1,155 ) Equity attributable to Himax under IFRS $ 426,943 - ------- -