AP NEWS

Himax Technologies, Inc. Reports Third Quarter 2018 Financial Results and Provides Fourth Quarter 2018 Guidance

November 8, 2018

Company Exceeds Q3 2018 Revenue, Gross Margin and EPS Guidance and Met Its Pre-Announced Key Financial Results

Provides Q4 2018 Guidance Revenue to be around Flat to up 5.0% Sequentially, Gross Margin to be around 24.2% to 25.2%, IFRS EPS to be around 1.5 to 3.6 Cents

-- Q3revenueincreased 3.9% QoQto $188.4M, exceeding guidance of around flat from the last quarter -- Product sales: large driver ICs, 35.2% of revenue, up9.4% QoQ; small and medium-sized driver ICs, 45.1% of revenue, down 4.8% QoQ; non-driver products, 19.7% of revenue,up18.0% QoQ -- Q3 IFRS grossmarginwas 23.4%, up 40 bps sequentiallydue to improved product mix and exceeding guidance of around 22.5% -- Q3 IFRS earningswas $0.9M, or0.5cents per diluted ADS, higher than guidance of around -1.0 cent -- Q3 Non-IFRS earnings was $4.5M, or 2.6 cents per diluted ADS, higher than guidance of around 1.5 cents -- Expect 4Q18 TDDI revenue to double from 3Q18 due to ramping of new capacity to fulfill more customer orders from design-wins -- Expect 4Q18 WLOshipmentto increase significantly sequentially, the overall 2018 shipment will increase considerably year-over-year -- 3D sensing adoption remains low for the Android smartphone makers due to the prevailing high hardware cost, long development lead time required for integration and the lack of killer applications which is limited to phone unlock and online payment -- Reacting to Android smartphone makers’ lukewarm response, the Company is working on the next generation 3D sensing with an aim to leapfrog the market by providing high performance, easy to adopt and yet cost friendly total solutions, targeting most of the Android smartphone players -- Company remains positive on its long-term business outlook

TAINAN, Taiwan, Nov. 08, 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 third quarter ended September 30, 2018.

The Company’s third quarter 2018 revenues, gross margin and EPS all exceeded guidance as it previously announced on October 5th. The revenues increase in the quarter was attributed to greater-than-expected production outputs of the new foundries for both large display driver ICs and TDDI chips that allowed Himax to fulfill more customer orders. As anticipated, its WLO shipment volume to an anchor customer also increased significantly against that of Q2 2018. Gross margin was 23.4%, up 40 basis points sequentially, outperforming the guidance by 90 basis points. A more favorable product mix and stronger-than-expected engineering fees from project engagements enhanced the gross margin.

“As indicated in the last earnings call, we are confident that we are moving out of the trough and will deliver better performance in the fourth quarter and next year. We are seeing solid growth momentum in the areas of TDDI, WLO and large display driver IC in the fourth quarter, despite the prevailing weak sentiment in the overall consumer electronics and in particular the smartphone market. Traditional discrete display driver for smartphone, however, will continue to decline in Q4 as it is being quickly replaced by TDDI and AMOLED as we mentioned repeatedly. The other area of decline in Q4 will be the display driver for tablet, a sector which is still experiencing weak market demand,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

“We expect our large display driver IC business will grow sequentially benefiting from Chinese panel makers’ strong demand and our newly added foundry capacity to improve order fulfillment, despite the new emergence of an industry wide capacity constraint in large panel display driver’s packaging. For the small and medium-sized business, we expect our TDDI revenue of fourth quarter to double from the last quarter, attributed to the ramping of the new foundry capacity to fulfill more customer orders. We target to completely resolve our TDDI foundry capacity issue in the third quarter of next year. As expected, our traditional discrete driver IC sales into smartphone is set to decline by close to 50% sequentially in the fourth quarter as the market is being quickly replaced by TDDI and AMOLED. This segment will account for less than 5% of our total sales in the fourth quarter. Combining TDDI and discrete smartphone driver, our Q4 sales into the smartphone market is expected to grow more than 20% sequentially.”

“For the non-driver areas, we expect the WLO shipment for the fourth quarter will have a very significant sequential growth thanks to the customer’s large-scale adoption on more models. As to our 3D sensing business, we have participated in most of the smartphone OEMs’ ongoing 3D sensing projects covering all three types of technologies, namely structured light, active stereo camera (ASC) and time-of-flight, where we provide 3D sensing total solution or just the projector or optics inside the module, depending on the customers’ needs. By offering either the projector or critical optics, we are already collaborating with a small handful of smartphone names that have in-house capability to come up with their own customized 3D sensing solutions. We already have one such end customer using our technology for mass production with two more in the pipeline targeting 2019 product launch. For most Android smartphone makers who don’t have such in-house capability, however, we aim to provide total solution to enable their 3D sensing. At present, the 3D sensing adoption for this market remains low. The adoption is hindered primarily by the prevailing high hardware cost of 3D sensing, the long development lead time required to integrate it into the smartphone and the lack of killer applications. Instead of 3D sensing, most of the Android phone makers have chosen the lower cost finger print technology which can achieve similar phone unlock and online payment functions with somewhat compromised user experience. Reacting to their lukewarm response, we are working on the next generation 3D sensing with an aim to leapfrog the market by providing high performance, easy to adopt and yet cost friendly total solutions, targeting most of the Android smartphone players. We believe that 3D sensing will be widely used by more Android smartphone makers when the ecosystem is able to substantially lower the cost of adoption while offering easy to use, fully integrated total solutions, for which Himax is playing a key part,” said Mr. Jordan Wu.

Third Quarter 2018 Financial Results

The third quarter revenues of $188.4 million represented an increase of 3.9% sequentially and a decrease of 4.4% year-over-year. Gross margin was 23.4%, up 0.4% sequentially. IFRS earnings per diluted ADS were 0.5 cents, higher than the guidance of -1.0 cent per diluted ADS. Non-IFRS earnings were 2.6 cents per diluted ADS, higher than guidance of around 1.5 cents.

Revenue from large display drivers was $66.3 million, up 9.4% sequentially, and up 20.6% year-over-year, driven by increasing 4K TV penetration and Chinese panel customers’ ramping of new LCD fabs. Large panel driver ICs accounted for 35.2% of the Company’s total revenues for the third quarter, compared to 33.4% in the second quarter of 2018 and 27.9% a year ago.

Revenue for small and medium-sized display drivers came in at $85.0 million, down 4.8% sequentially and down 2.6% year-over-year. The driver ICs for the segment accounted for 45.1% of total sales for the third quarter, as compared to 49.2% in the second quarter of 2018 and 44.2% a year ago. Sales into smartphones were down 30.5% sequentially, as opposed to 40% that the Company indicated in the last earnings call, due to better-than-expected TDDI production output in the early ramp of its new foundry. With the major addition of TDDI capacity available to the Company, Himax is very optimistic about the smartphone business growth in Q4 and next year.

Driver IC revenue for automotive applications recorded another historical quarter, up 18.3% sequentially and 55.4% year-over-year. The quarterly revenue reached $33.9 million, accounting for more than 22% of the Company’s driver IC revenue. Himax is happy with the strong momentum and its leading market position in this space.

Revenues from non-driver businesses were $37.1 million, up 18.0% sequentially but down 32.5% from last year. Non-driver products accounted for 19.7% of total revenues, as compared to 17.4% in the second quarter of 2018 and 27.9% a year ago. The sequential increase was mainly driven by the significantly higher WLO shipments to an anchor customer. The year-over-year decrease was due mainly to certain one-off customer reimbursement totaling $13.3 million booked in Q3 2017 in relation to the AR goggle business. The Company expects WLO shipments to continue to increase strongly in the fourth quarter and into 2019.

IFRS gross margin for the third quarter was 23.4%, up 40 basis points from 23.0% in the second quarter of 2018 but down 210 basis points from the same period last year. The sequential increase was due mainly to improved product mix. The year-over-year decrease was, again, due to the one-off customer reimbursement mentioned above. The reimbursement accounted for 120 basis points in Q3 2017.

IFRS operating expenses were $43.4 million in the third quarter, up 5.0% from the preceding quarter and down 7.7% from a year ago. The sequential expense increase was caused by $3.8 million of RSU expense, offset by R&D and salary expenses reduction of $1.7 million. The year-over-year decrease was mainly a result of reduced RSU and R&D expenses. As an annual practice, Himax rewards employees with an annual bonus at the end of September which always leads to a substantial increase in the third quarter IFRS operating expenses compared to the other quarters of the year. This year, the RSU grant totaled $3.9 million, out of which $3.8 million was vested immediately and expensed in the third quarter. The remainder will be vested equally at the first, second, and third anniversaries of the grant date. The non-IFRS operating expenses for the third quarter were $38.8 million, down 5.3% from the previous quarter and down 3.6% from the same quarter 2017.

IFRS operating margin for the third quarter was 0.4%, down from 1.7% in the same period last year and little changed from 0.3% in the prior quarter.

Third quarter non-IFRS operating income was $5.4 million, or 2.9% of sales, down from 5.2% for the same period last year and up from 0.5% a quarter ago.

IFRS profit for the third quarter was $0.9 million, or 0.5 cents per diluted ADS, compared to $2.0 million, or 1.2 cents per diluted ADS, in the previous quarter and $3.6 million, or 2.1 cents per diluted ADS, a year ago. The year-over-year decrease was, again, due to the one-off customer reimbursement mentioned above.

Third quarter non-IFRS profit was $4.5 million, or 2.6 cents per diluted ADS, compared to $2.3 million, or 1.3 cents per diluted ADS last quarter and $8.9 million, or 5.2 cents per diluted ADS the same period last year.

Balance Sheet and Cash Flow

Himax had $102.9 million of cash, cash equivalents and other financial assets as of the end of September 2018, compared to $151.6 million at the same time last year and $126.7 million a quarter ago. The cash position dropped $23.8 million from last quarter due primarily to the dividend payout of $17.2M and capex of $8.2 million. On top of the above cash position, restricted deposit was $164.3 million at the end of the quarter, as compared to $147.0 million in the preceding quarter and $147.2 million a year ago. The increase is due to additional restricted cash deposit made to guarantee the dividend payment withdrawn from the banking facility in the quarter. The restricted deposit is mainly used to guarantee the Company’s short-term borrowings for the same amount.

Himax’s inventories were $145.8 million as of September 30, 2018, up from $142.1 million a quarter ago and $130.1 million at the same time last year. Accounts receivable at the end of September 2018 were $187.6 million as compared to $183.2 million a year ago and $176.3 million last quarter. DSO was 96 days at the end of September 2018, as compared to 99 days a year ago and 93 days at end of the last quarter.

Net cash inflow from operating activities for the third quarter was $2.2 million as compared to an inflow of $16.9 million for the same period last year and an outflow of $2.8 million last quarter. The year over year variance is mainly due to inventory pre-build in reaction to foundry capacity shortage. We expect this will repeat in the fourth quarter.

Capital expenditures were $8.2 million in the third quarter versus $10.1 million a year ago and $17.7 million last quarter. The third quarter capex consisted mainly of ongoing payments for the new building’s construction, WLO capacity expansion and installation of active alignment equipment for Himax’s 3D sensing business.

Share Buyback Update

As of September 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.

2018 Investor Outreach and Conferences

Ms. Jackie Chang, CFO, Ms. Ophelia Lin, internal IR Deputy Director, Mr. Sky Wang, internal IR, and Mr. John Mattio, Himax’s US-based external 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.

Q4 2018 Outlook

The Company is confident that its moving out of the trough and will deliver better performance in the fourth quarter and next year. Himax is seeing solid growth momentum in the areas of TDDI, WLO and large display driver IC in the fourth quarter, despite the prevailing weak sentiment in the overall consumer electronics and in particular the smartphone market in the fourth quarter. Traditional discrete display driver for smartphone, however, will continue to decline in Q4 as it is being quickly replaced by TDDI and AMOLED as Himax mentioned repeatedly. The other area of decline in Q4 will be the display driver for tablet, a sector which is still experiencing weak market demand.

Comparing to the third quarter revenues, Himax expects a high single digit growth for large driver ICs; a low single digit decline for small and medium-sized driver IC and a low single digit growth for its non-driver IC business.

Display Driver IC MarketLDDICLarge display driver IC business recorded high-single-digit growth in the third quarter due mainly to a few factors, namely, improved supply from the newly added foundry capacity, Himax’s Chinese panel customers’ ongoing capacity expansion, and shipment to a new panel customer who only started ramping up their first fab lately. The ramping of the Company’s new foundry was in good progress as more of its panel customers completed qualification with their customers for the new capacity. Looking into Q4, the Company is seeing continued strength in customer demands and it is able to improve the order fulfillment from last quarter, despite the new emergence of an industry-wide capacity constraint in relation to packaging of the large panel display driver IC. With that, Himax expects large display driver business to increase by high single digit sequentially.

Looking into the future, many TV manufacturers are planning on introducing consumer-grade super high-end products with 8K resolution, which will benefit Himax’s large panel display driver as well as timing controller businesses. One of the Company’s industry leading customers will be launching a new 8K TV with Himax technology inside in early 2019 and the Company expects more to come from this and other customers in the future. Capitalizing on its 4K TV success, Himax is strongly positioned for this emerging high-end market opportunity.

SMDDICHimax was able to start mass production of TDDI at the new foundry earlier than the original schedule and achieved greater-than-expected output yield at the early stage of mass production. With the ramping of the new capacity, its constraint of TDDI shipment will be increasingly alleviated starting from the fourth quarter. The Company will be able to fulfill more customer orders from the design-wins it already achieved, thereby doubling the revenue of Q4 from the last quarter. With the new capacity’s continued ramping, Himax targets to completely resolve its foundry capacity issue in the third quarter of next year. For the time being when its capacity remains a constraint, Himax’s resources are prioritized for higher end FHD projects as they yield higher revenue and better margin with less competition.

TDDI penetration is expected to reach more than 30% in smartphone in 2019, representing a tremendous upside potential for Himax. Backed by the new foundry capacity and fast expanding design-win portfolio with tier 1 smartphone OEMs and leading panel makers, Himax is well positioned to win a major market share in this new space, repeating its historical success in the smartphone display driver IC business. The Company believes TDDI will be the biggest growth driver for its business in 2019. With higher ASP and better margin, TDDI chips will help improve Himax’s corporate sales and profit significantly in 2019.

As expected, Himax’s traditional discrete driver IC sales into smartphone is set to decline by close to 50% sequentially in the fourth quarter as the market is being quickly replaced by TDDI and AMOLED. This segment will account for less than 5% of our total sales in the fourth quarter. Combining TDDI and discrete smartphone driver, the Company’s Q4 sales into the smartphone market is expected to grow more than 20% sequentially.

During the third quarter, the Company’s automotive business continued to perform well and recorded another historical high, delivering a 44.4% growth YOY through nine-month 2018. The demands for more sophisticated and higher performing displays are still rising with automakers. The Company’s technological prowess will continue to separate it from the rest as, for the next generation display for automotive, Himax is the leader in key technologies such as TDDI, AMOLED and local dimming timing controller. Q4 revenue in this segment is set to grow around low single digit sequentially as the Company continues to benefit from its design-wins which took place during the last few years.

Himax’s tablet and consumer electronics businesses are expected to decline by over 30% sequentially driven by weak overall market momentum. They account for less than 10% of its total sales in the fourth quarter.

For fourth-quarter small and medium-sized driver IC business, the company expects revenue to decrease by low 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 SolutionsAs a leader in 3D sensing, Himax has participated in most of the smartphone OEMs’ ongoing 3D sensing projects covering all three types of technologies, namely structured light, active stereo camera (ASC) and time-of-flight, where it provides 3D sensing total solution, or just the projector or optics inside the module, depending on the customers’ needs. By offering either the projector or critical optics, Himax has been collaborating with a small handful of smartphone names that have in-house capability to come up with their own customized 3D sensing solutions. Himax already has one such end customer using its technology for mass production with two more in the pipeline targeting 2019 product launch. For most Android smartphone makers who don’t have such in-house capability, however, the Company aims to provide total solution to enable their 3D sensing. At present, the 3D sensing adoption for this market remains low. The adoption is hindered primarily by the prevailing high hardware cost of 3D sensing and the long development lead time required for 3D sensing to integrate it into the smartphone and the lack of killer applications. Instead of 3D sensing, most of the Android phone makers have chosen the lower cost finger print technology which can achieve similar phone unlock and online payment functions with somewhat compromised user experience. Reacting to their lukewarm response, Himax is working on the next generation 3D sensing with an aim to leapfrog the market by providing high performance, easy to adopt and yet cost friendly total solutions, targeting most of the Android smartphone players. In addition, Himax is providing 3D sensing developer kit which is being used to develop applications over both smartphone and non-smartphone platforms. Himax believes that 3D sensing will be widely used by more Android smartphone makers when the ecosystem is able to substantially lower the cost of adoption while offering easy-to-use, fully-integrated total solutions, for which Himax is playing a key part.

The Company has mentioned previously that 3D sensing can have a wide range of applications beyond smartphone. While smartphone remains its top priority, the Company has started to explore business opportunities in various industries by leveraging its SLiMTM 3D sensing total solution. Such industries are typically less sensitive to cost and always require a total solution. Himax recently announced collaboration with Kneron, an industry leader in edge-based artificial intelligence, to develop an AI-enabled 3D sensing security and surveillance solution is just an example of real world applications using its 3D sensing technology.

WLOThe fourth quarter will see another very significant sequential growth thanks to the customer’s large-scale adoption on more models. The overall 2018 shipment will increase considerably year-over-year. Meanwhile, Himax is encouraged by the progress of the ongoing 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.

As the Company mentioned previously, it is already collaborating with a small handful of smartphone makers that have in-house capability to come up with their own customized 3D sensing solutions targeting 2019 product launch. For these customers, the Company provides full projectors or critical optics inside the 3D sensing module of which WLO optics is a major component.

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 goes 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 Phase I capex of $105 million budget, $33 million has been paid out in 2017, followed by $38.6 million made in the first nine months of 2018.

As the Company mentioned in 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.

CMOS Image SensorOn CMOS image sensor business updates, 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 the Company’s structured light and ASC 3D sensing total solutions. On the AoSTM product line, the joint offering of Emza and Himax technologies uniquely positions the Company to provide ultra-low power, smart imaging sensing total solutions, leveraging Himax’s industry leading super low power CIS and ASIC designs and Emza’s unique AI-based computer vision algorithm. The Company 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, Himax 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 automotive. While AR goggles will take a few years to fully realize its market potential, LCOS remains the technology of choice in this space. Himax’s technology leadership and proven manufacturing expertise have little competition, evidenced by the growing list of AR goggle device customers and ongoing engineering projects. In addition, the Company continues to make great progress in developing high-end holographic head-up displays for high-end automotive. One of its customers will demo its state-of-the-art HUD product with Himax LCOS inside at the 2019 CES. LCOS for both goggle device and HUD represents much higher ASP and gross margin for Himax. In the meantime, Himax is working with various OEMs to bring LCOS microdisplays to mini projectors with revenue contribution to start from 2019.

For non-driver IC business, Himax expects revenue to increase by low single digit sequentially in the fourth quarter, driven mainly by WLO shipment.

Fourth Quarter 2018 Guidance The Company is providing the following financial guidance for the fourth quarter of 2018: Net Revenue: To be around flat to up 5.0% sequentially To be around 24.2% Gross Margin: to 25.2%, depending on final product mix To be around 1.5 to IFRS EPS: 3.6 cents per diluted ADS To be around 1.7 to Non-IFRS EPS(1): 3.8 cents per diluted ADS (1)Non-IFRSEPS excludes share-based compensation and acquisition-related charges HIMAX TECHNOLOGIES THIRD QUARTER 2018 EARNINGS CONFERENCE CALL DATE: Thursday, November 8, 2018 TIME: U.S. 8:00 a.m. EST Taiwan 9:00 p.m. DIAL IN: U.S.+1 (866) 444-9147 INTERNATIONAL+1 (678) 509-7569 CONFERENCE ID: 3755507 https://edge.media-se WEBCAST: rver.com/m6/p/4y364d6 r

A replay of the call will be available beginning two hours after the call through 11:30 a.m. US EST on November 15th, 2018 (00:30 a.m. Taiwan time, November 16th, 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 3755507. 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 November 8th, 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 2,983 patents granted and 493 patents pending approval worldwide as of September 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

Sky Wang, Investor RelationsHimax Technologies, Inc.US Tel: +1-949-585-9838 Ext.223Fax: +1-312-445-3643Email: sky_wang@himax.com.twwww.himax.com.tw

Investor Relations - US RepresentativeJohn Mattio, PresidentLamnia International Tel: +1-203-885-1058Email: jmattio@lamniaintl.comwww.lamniaintl.com

-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 Three Months Months EndedSeptember 30, Ended June 30, 2018 2017 2018 - ------- - - ------- - - ------- - Revenues $ 188,383 $ 197,146 $ 181,365 Costs and expenses: Cost of revenues 144,241 146,778 139,571 Research and development 32,129 35,019 30,444 General and administrative 5,635 5,938 5,632 Sales and marketing 5,588 6,012 5,218 - ------- - - ------- - - ------- - Total costs and expenses 187,593 193,747 180,865 - ------- - - ------- - - ------- - Operating income 790 3,399 500 - ------- - - ------- - - ------- - Non operatingincome (loss): Interest income 603 509 672 Changes in fair value of financial assets at fair value through profit (44 ) 55 (25 ) or loss Share of profit (losses) of associates (549 ) 114 (1,099 ) Foreign currency exchange gains (losses), net (285 ) (188 ) 242 Finance costs (378 ) (224 ) (265 ) Other income, net 9 2 1,677 - ------- - - ------- - - ------- - (644 ) 268 1,202 - ------- - - ------- - - ------- - Profitbefore income taxes 146 3,667 1,702 Income tax expense 26 622 306 - ------- - - ------- - - ------- - Profit for the period 120 3,045 1,396 Loss attributable to noncontrolling interests 769 555 650 - ------- - - ------- - - ------- - Profit attributable to Himax Technologies, Inc. stockholders $ 889 $ 3,600 $ 2,046 - ------- - - ------- - - ------- - Basic earnings per ADS attributable to Himax Technologies, Inc. $ 0.005 $ 0.021 $ 0.012 stockholders - ------- - - ------- - - ------- - Diluted earnings per ADS attributable to Himax Technologies, Inc. $ 0.005 $ 0.021 $ 0.012 stockholders - ------- - - ------- - - ------- - Basic Weighted Average Outstanding ADS 172,500 172,401 172,499 Diluted Weighted Average Outstanding ADS 172,530 172,448 172,539

Himax Technologies, Inc. Unaudited Condensed Consolidated Statements of Profit or Loss (Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data) NineMonths EndedSeptember 30, 2018 2017 - ------- - - ------- - Revenues $ 532,599 $ 504,086 Costs and expenses: Cost of revenues 410,066 381,643 Research and development 92,613 88,275 General and administrative 16,173 15,060 Sales and marketing 15,701 15,028 - ------- - - ------- - Total costs and expenses 534,553 500,006 - ------- - - ------- - Operating income(loss) (1,954 ) 4,080 - ------- - - ------- - Non operatingincome (loss): Interest income 1,824 1,671 Changes in fair value of financial assets at fair value through profit or loss (68 ) 162 Share of losses of associates (2,492 ) (717 ) Foreign currency exchange losses, net (301 ) (1,337 ) Finance costs (895 ) (628 ) Other income, net 1,690 9 - ------- - - ------- - (242 ) (840 ) - ------- - - ------- - Profit (loss) before income taxes (2,196 ) 3,240 Income tax expense (benefit) (396 ) 565 - ------- - - ------- - Profit (loss) for the period (1,800 ) 2,675 Loss attributable to noncontrolling interests 1,906 1,461 - ------- - - ------- - Profit attributable to Himax Technologies, Inc. stockholders $ 106 $ 4,136 - ------- - - ------- - Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders $ 0.001 $ 0.024 - ------- - - ------- - Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders $ 0.001 $ 0.024 - ------- - - ------- - Basic Weighted Average Outstanding ADS 172,499 172,399 Diluted Weighted Average Outstanding ADS 172,525 172,414

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: Ended September 30, EndedJ une 30, 2018 2017 2018 - ----- - - ------ - ----- - Share-based compensation Cost of revenues $ 66 $ 130 $ 12 Research and development 3,037 4,904 58 General and administrative 367 634 9 Sales and marketing 513 922 14 Income tax benefit (865 ) (1,438 ) (13 ) - ----- - - ------ - - --- - Total $ 3,118 $ 5,152 $ 80 - ----- - - ------ - - --- - The amount ofacquisition-related chargesincluded in applicablestatements of profit or losscategories is summarized as follows: Acquisition-related charges Research and development $ 631 $ 246 $ 246 Income tax benefit (167 ) (99 ) (71 ) - ----- - - ------ - - --- - Total $ 464 $ 147 $ 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 Nine Months losscategories is summarized as follows: Ended September 30, 2018 2017 - ----- - - ------ - Share-based compensation Cost of revenues $ 90 $ 180 Research and development 3,152 5,182 General and administrative 385 709 Sales and marketing 540 980 Income tax benefit (890 ) (1,512 ) - ----- - - ------ - Total $ 3,277 $ 5,539 - ----- - - ------ - The amount ofacquisition-related chargesincluded in applicablestatements of profit or losscategories is summarized as follows: Acquisition-related charges Research and development $ 1,123 $ 738 Income tax benefit (309 ) (296 ) - ----- - - ------ - Total $ 814 $ 442 - ----- - - ------ -

Himax Technologies, Inc. IFRSUnaudited Condensed ConsolidatedStatementsofFinancialPosition (Amounts in Thousands of U.S. Dollars) September30, June 30, September30, 2018 2018 2017 Assets Current assets: Cash and cash equivalents $ 90,946 $ 114,480 $ 141,482 Financial assets at amortized cost 12,001 12,154 9,473 Financial assets at fair value through profit or loss - 66 651 Accounts receivable, net 187,613 176,286 183,171 Inventories 145,812 142,077 130,112 Income taxes receivable 45 45 5 Restricted deposit 164,328 147,000 147,202 Other receivable from related parties 2,840 2,803 4,150 Other current assets 18,728 18,743 18,482 - ------- - - ------- - - ------- - Total current assets 622,313 613,654 634,728 - ------- - - ------- - - ------- - Financial assets at fair value through profit or loss 1,529 1,574 10,562 Financial assets at fair value through othercomprehensive income 772 802 1,548 Equity method investments 9,356 9,964 4,231 Property, plantand equipment, net 109,198 106,041 66,487 Deferred taxassets 7,851 7,834 8,058 Goodwill 28,138 28,138 28,138 Other intangible assets, net 12,899 13,525 3,101 Restricted deposit 131 460 463 Other non-current assets 2,695 3,660 3,759 - ------- - - ------- - - ------- - 172,569 171,998 126,347 - ------- - - ------- - - ------- - Total assets $ 794,882 $ 785,652 $ 761,075 - ------- - - ------- - - ------- - Liabilities andEquity Current liabilities: Short-term borrowings $ 164,000 $ 147,000 $ 147,000 Financial liability at amortized cost 5,071 5,003 - Accounts payable 141,553 128,862 125,553 Income taxes payable 1,839 1,872 9,159 Other payable to related party 2,250 2,200 1,350 Other current liabilities 37,799 58,113 39,115 - ------- - - ------- - - ------- - Total current liabilities 352,512 343,050 322,177 - ------- - - ------- - - ------- - Financial liabilityat amortized cost - - 4,757 Net defined benefit liabilities 1,123 1,125 1,117 Deferred tax liabilities 2,692 2,795 1,322 Other non-current liabilities 2,760 2,888 1,437 - ------- - - ------- - - ------- - 6,575 6,808 8,633 - ------- - - ------- - - ------- - Total liabilities 359,087 349,858 330,810 - ------- - - ------- - - ------- - Equity Ordinary shares 107,010 107,010 107,010 Additional paid-in capital 106,781 106,644 104,212 Treasury shares (8,819 ) (8,878 ) (8,878 ) Accumulated other comprehensive income (1,820 ) (1,497 ) (722 ) Retained earnings 236,299 235,410 229,666 - ------- - - ------- - - ------- - Equity attributable to owners of HimaxTechnologies, Inc. 439,451 438,689 431,288 Noncontrolling interests (3,656 ) (2,895 ) (1,023 ) - ------- - - ------- - - ------- - Totalequity 435,795 435,794 430,265 - ------- - - ------- - - ------- - Total liabilities and equity $ 794,882 $ 785,652 $ 761,075 - ------- - - ------- - - ------- -

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) Three Three Months Months EndedSeptember30, EndedJune 30, 2018 2017 2018 - ------- - - ------- - - ------- - Cash flows from operating activities: Profit for the period $ 120 $ 3,045 $ 1,396 Adjustments for: Depreciation and amortization 5,180 4,672 5,180 Bad debt expense - - 190 Share-based compensation expenses 205 443 93 Losses on disposals of property, plant and equipment, net - 3 - 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 44 (55 ) 25 or loss Interest income (603 ) (509 ) (672 ) Finance costs 378 224 265 Income tax expense 26 622 306 Share of losses (profit) of associates 549 (114 ) 1,099 Inventories write downs 5,200 3,346 3,567 Foreign currency exchange losses of financial assets 167 - 340 - ------- - - ------- - - ------- - 11,266 11,677 10,127 Changes in: Accounts receivable (11,327 ) (23,858 ) (9,872 ) Inventories (8,935 ) 14,222 2,318 Other receivable from related parties (37 ) - (8 ) Other current assets (461 ) 582 1,205 Accounts payable 12,691 11,883 (6,108 ) Other payable to related party 50 1,350 300 Net defined benefit liabilities (2 ) 4 (53 ) Other current liabilities (706 ) 7,406 1,318 Other non-current liabilities (127 ) - 167 - ------- - - ------- - - ------- - Cash generated from operating activities 2,412 23,266 (606 ) Interest received 265 122 1,014 Interest paid (309 ) (145 ) (182 ) Income tax paid (165 ) (6,371 ) (3,032 ) Net cash provided by (used in) operating activities 2,203 16,872 (2,806 ) - ------- - - ------- - - ------- - Cash flows from investing activities: Acquisitions of property, plant and equipment (8,159 ) (10,056 ) (17,745 ) Proceeds from disposal of property, plant and equipment 1 - - Acquisitions of intangible assets (140 ) (122 ) (109 ) Acquisitions of financial assets at amortized cost (997 ) (4,059 ) (1,135 ) Proceeds from disposals of financial assets at amortized cost 901 - 303 Acquisitions of financial assets at fair value through profit or loss (6,858 ) (16,266 ) (7,445 ) Proceeds from disposals of financial assets at fair value through 6,939 19,014 7,693 profit or loss Acquisition of a subsidiary, net of cash used - - (3,301 ) Proceeds from capital reduction of investment - 132 - Decrease (increase) in refundable deposits 4 (12 ) 6 Releases (pledges) of restricted deposit 1 (4 ) 21

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) Three Three Months Months EndedSeptember30, EndedJune 30, 2018 2017 2018 - ------- - - ------- - - ------- - Cash paid for loan made to related parties $ - $ (1,500 ) $ (530 ) Cash received from loan made to related party - 1,500 - Net cash used in investing activities (8,308 ) (11,373 ) (22,242 ) - ------- - - ------- - - ------- - Cash flows from financing activities: Payments of cash dividends (17,210 ) (41,281 ) - Acquisitions of noncontrolling interests - (41 ) - Pledge of restricted deposit (17,000 ) (40,000 ) - Proceeds from short-term borrowings 57,000 70,000 27,000 Repayments of short-term borrowings (40,000 ) (30,000 ) (27,000 ) Net cashused in financing activities (17,210 ) (41,322 ) - - ------- - - ------- - - ------- - Effect offoreign currencyexchange rate changes on cash and cash (219 ) 99 (278 ) equivalents - ------- - - ------- - - ------- - Netdecreasein cash and cash equivalents (23,534 ) (35,724 ) (25,326 ) Cash and cash equivalents at beginning of period 114,480 177,206 139,806 Cash and cash equivalents at end of period $ 90,946 $ 141,482 $ 114,480 - ------- - - ------- - - ------- -

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) NineMonths EndedSeptember30, 2018 2017 - ------- - - ------- - Cash flows from operating activities: Profit (loss) for the period $ (1,800 ) $ 2,675 Adjustments for: Depreciation and amortization 15,458 11,582 Bad debt expense 190 - Share-based compensation expenses 389 904 Gain on disposals of property, plant and equipment - (25 ) Gain on re-measurement of the pre-existing relationships in a business combination (1,662 ) - Changes in fair value of financial assets at fair value through profit or loss 68 (162 ) Interest income (1,824 ) (1,671 ) Finance costs 895 628 Income tax expense (benefit) (396 ) 565 Share of losses of associates 2,492 717 Inventories write downs 11,721 8,880 Foreign currency exchange losses of financial assets 285 - - ------- - - ------- - 25,816 24,093 Changes in: Accounts receivable 972 4,236 Inventories (22,333 ) 10,756 Other receivable from related parties (60 ) - Other current assets (928 ) 1,315 Accounts payable 1,620 (16,716 ) Accounts payable to related party - (576 ) Other payable to related party 50 1,350 Net defined benefit liabilities (29 ) 43 Other current liabilities (1,017 ) 10,133 Other non-current liabilities 33 (14 ) - ------- - - ------- - Cash generated from operating activities 4,124 34,620 Interest received 1,445 1,282 Interest paid (661 ) (395 ) Income tax paid (3,234 ) (14,410 ) Net cashprovided byoperating activities 1,674 21,097 - ------- - - ------- - Cash flows from investing activities: Acquisitions of property, plant and equipment (44,454 ) (23,755 ) Proceeds from disposals of property, plant and equipment 1 28 Acquisitions of intangible assets (343 ) (351 ) Acquisitions of financial assets at amortized cost (4,029 ) (4,816 ) Proceeds from disposals of financial assets at amortized cost 1,958 744 Acquisitions of financial assets at fair value through profit or loss (18,633 ) (36,589 ) Proceeds from disposals of financial assets at fair value through profit or loss 41,138 41,287 Proceeds from capital reduction of investment - 132 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 9 (38 ) Releases (pledges) of restricted deposit 11 (341 )

Himax Technologies, Inc. Unaudited CondensedConsolidated Statements of Cash Flows (AmountsinThousands of U.S. Dollars) NineMonths EndedSeptember30, 2018 2017 - ------- - - -------- - Cash paid for loan made to related parties $ (780 ) $ (1,500 ) Cash received from loan made to related party - 4,500 Income tax paid for disposal of financial assets at fair value through profit or (2,187 ) - loss - ------- - - -------- - Net cash used in investing activities (31,310 ) (22,929 ) - ------- - - -------- - Cash flows from financing activities: Payments of cash dividends (17,210 ) (41,281 ) 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 - (42 ) Pledge of restricted deposit (17,000 ) (9,000 ) Proceeds from short-term borrowings 84,000 124,161 Repayments of short-term borrowings (67,000 ) (115,161 ) Net cashused in financing activities (17,199 ) (41,319 ) - ------- - - -------- - Effect offoreign currencyexchange rate changes on cash and cash equivalents (242 ) 181 - ------- - - -------- - Netdecreasein cash and cash equivalents (47,077 ) (42,970 ) Cash and cash equivalents at beginning of period 138,023 184,452 Cash and cash equivalents at end of period $ 90,946 $ 141,482 - ------- - - -------- -

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 Ended September30, EndedJune 30, 2018 2017 2018 - ------- - - ------- - - ------- - Revenues $ 188,383 $ 197,146 $ 181,365 Gross profit 44,142 50,368 41,794 Add: Share-based compensation – cost of revenues 66 130 12 Gross profit excluding share-based compensation 44,208 50,498 41,806 Gross margin excluding share-based compensation 23.5 % 25.6 % 23.1 % Operating income 790 3,399 500 Add: Share-based compensation 3,983 6,590 93 Operating income excluding share-based compensation 4,773 9,989 593 Add: Acquisition-related charges –intangible assets amortization 631 246 246 Operating income excluding share-based compensation and 5,404 10,235 839 acquisition-related charges Operating margin excluding share-based compensation and 2.9 % 5.2 % 0.5 % acquisition-related charges Profit attributable to Himax Technologies, Inc. stockholders 889 3,600 2,046 Add: Share-based compensation, net of tax 3,118 5,152 80 Add: Acquisition-related charges, net of tax 464 147 175 Profit attributable to Himax Technologies, Inc. stockholders excluding 4,471 8,899 2,301 share-based compensation and acquisition-related charges Net margin attributable to Himax Technologies, Inc. stockholders 2.4 % 4.5 % 1.3 % 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 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 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: NineMonths Ended September30, 2018 2017 - ------- - - ------- - Revenues $ 532,599 $ 504,086 Gross profit 122,533 122,443 Add: Share-based compensation – cost of revenues 90 180 Gross profit excluding share-based compensation 122,623 122,623 Gross margin excluding share-based compensation 23.0 % 24.3 % Operating income (loss) (1,954 ) 4,080 Add: Share-based compensation 4,167 7,051 Operating income excluding share-based compensation 2,213 11,131 Add: Acquisition-related charges –intangible assets amortization 1,123 738 Operating income excluding share-based compensation and acquisition-related charges 3,336 11,869 Operating margin excluding share-based compensation and acquisition-related charges 0.6 % 2.4 % Profit attributable to Himax Technologies, Inc. stockholders 106 4,136 Add: Share-based compensation, net of tax 3,277 5,539 Add: Acquisition-related charges, net of tax 814 442 Profit attributable to Himax Technologies, Inc. stockholders excluding share-based 4,197 10,117 compensation and acquisition-related charges Net margin attributable to Himax Technologies, Inc. stockholders excluding 0.8 % 2.0 % 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 attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges divided by revenues

Diluted EarningsPer ADS Attributable to Himax Technologies, Inc. Stockholders Excluding Share-based Compensation and Acquisition-Related Charges: (Amounts in U.S. Dollars) ThreeMon NineMont ths hs Ended Ended Septembe Septembe r 30, r30, 2018 2018 - ----- - ----- Diluted IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders $ 0.005 $ 0.001 Add: Share-based compensation per ADS $ 0.018 $ 0.019 Add: Acquisition-related charges per ADS $ 0.003 $ 0.005 Diluted non-IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders $ 0.026 $ 0.024 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 ofSeptember30, 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 $ 141,482 $ - $ - $ 141,482 Cash and cash equivalents Investments in marketable securities 10,124 - (10,124 ) - A-1 available-for-sale - - - 9,473 9,473 Financial assets at amortized A-1 - cost - - 651 651 Financial assets at fair A-1 - value through profit or loss Accounts receivable, less allowance for doubtful 181,731 - 1,440 183,171 B accounts, sales returns and discounts Accounts receivable, net Inventories 130,112 - - 130,112 Inventories - - - 5 5 Income taxes receivable Restricted cash, cash equivalents and marketable 147,202 - - 147,202 securities Restricted deposit Other receivables from 4,150 - - 4,150 Other receivable from related related parties parties Prepaid expenses and other 18,487 - (5 ) 18,482 current assets Other current assets - ------- - ---- - ------- - - ------- Total current assets 633,288 - 1,440 634,728 Total current assets - ------- - ---- - ------- - - ------- Investment in non-marketable 12,110 - (12,110 ) - A-2 equity securities - - - 10,562 10,562 Financial assets at fair A-2 value through profit or loss Financial assets at fair - - - 1,548 1,548 value through other A-2 comprehensive income Equity method investments 4,231 - - 4,231 Equity method investments Property, plant and 69,518 - (3,031 ) 66,487 Property, plant and C equipment, net equipment, net Deferred tax assets 6,841 (57 ) 1,274 8,058 Deferred tax assets D,F Goodwill 28,138 - - 28,138 Goodwill Other intangible assets, net 2,427 - 674 3,101 Other intangible assets, net C Restricted marketable 463 - - 463 Restricted deposit securities Other assets 1,492 (90 ) 2,357 3,759 Other non-current assets C,F - ------- - ---- - - ------- - ------- 125,220 (147 ) 1,274 126,347 - ------- - ---- - - ------- - ------- Total assets $ 758,508 $ (147 ) $ 2,714 $ 761,075 Total assets - ------- - ---- - ------- - -------

(Continued)

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidatedstatement offinancialposition as ofSeptember30, 2017 (Amounts in Thousands of U.S. Dollars) U.S. GAAP Effect of Transition IFRS to IFRS -------------------------------------- ---------------------- --------------------------------------- Recognition Presentatio Items Amount Difference n Amount Items Note Difference ------------------------- ----------- ---------- ---------- ----------- -------------------------- ----- Liabilities, Redeemable noncontrolling interest Liabilities andEquity and Equity Current liabilities: Current liabilities: Short-term debt $ 147,000 $ - $ - $ 147,000 Short-term borrowings Accounts payable 125,553 - - 125,553 Accounts payable Income taxes payable 8,633 - 526 9,159 Income taxes payable E Other payable to related 1,350 - - 1,350 Other payable to related party party Other accrued expenses and other current 37,675 - 1,440 39,115 B liabilities Other current liabilities - ------- - - ------ - - ------ - ------- - Total current liabilities 320,211 - 1,966 322,177 Total current liabilities - ------- - - ------ - - ------ - ------- - - - 4,757 - 4,757 Financial liabilityat A-3 amortized cost - - (17 ) 1,134 1,117 Net defined benefit F liabilities - - - 1,322 1,322 Deferred tax liabilities D Other liabilities 3,145 - (1,708 ) 1,437 Other non-current D,E,F liabilities - ------- - - ------ - - ------ - - ------- - 3,145 4,740 748 8,633 - ------- - - ------ - - ------ - - ------- - Total liabilities 323,356 4,740 2,714 330,810 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 107,140 (2,928 ) - 104,212 G capital Additional paid-in capital Treasury shares (8,878 ) - - (8,878 ) Treasury shares Accumulated other (1,748 ) 1,026 - (722 ) Accumulated other F comprehensive loss comprehensive income Unappropriated retained 228,997 669 - 229,666 earnings Retained earnings - ------- - - ------ - - ------ - - ------- - Equity attributable to Himax Technologies, Inc. 432,521 (1,233 ) - 431,288 owners of H stockholders’equity HimaxTechnologies, Inc. Noncontrolling interests (1,025 ) 2 - (1,023 ) Noncontrolling interests F - ------- - - ------ - - ------ - - ------- - Total equity 431,496 (1,231 ) - 430,265 Total equity - ------- - - ------ - - ------ - - ------- - Total liabilities, redeemable noncontrolling $ 758,508 $ (147 ) $ 2,714 $ 761,075 Total liabilities and interestand equity equity - ------- - - ------ - - ------ - - ------- -

(Concluded)

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidated statement of profit or loss for the three months endedSeptember30, 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 $ 197,146 $ - $ - $ 197,146 Revenues Costs and expenses: Costs and expenses: Cost of revenues 146,778 - - 146,778 Cost of revenues Research and development 34,989 30 - 35,019 Research and development G General and 6,016 (78 ) - 5,938 General and G administrative administrative Sales and marketing 5,967 45 - 6,012 Sales and marketing G - ------- - - --- - - - ----------- - ------- - Total costs and expenses 193,750 (3 ) - 193,747 Total costs and expenses - ------- - - --- - - - ----------- - ------- - Operating income 3,396 3 - 3,399 Operating income - ------- - - --- - - - ----------- - ------- - Non operating income Non operating income (loss): (loss): Interest income 509 - - 509 Interest income Changes in fair value of 55 - - 55 financial assets at fair Gain on sale of value through profit or securities, net loss Equity in income of 114 - - 114 Share of profit of equity method investees associates Foreign currency exchange (180 ) (8 ) - (188 ) Foreign currency exchange F losses, net losses, net Interest expense (145 ) (79 ) - (224 ) Finance costs A-3 Other income, net 2 - - 2 Other income, net - ------- - - --- - - - ----------- - ------- - 355 (87 ) - 268 - ------- - - --- - - - ----------- - ------- - Earningsbefore income 3,751 (84 ) - 3,667 Profitbefore income taxes taxes Income tax expense 621 1 - 622 Income tax expense F - ------- - - --- - - - ----------- - ------- - Netincome 3,130 (85 ) - 3,045 Profitfor the period Net loss attributable to Loss attributable to noncontrolling interests noncontrolling interests F 554 1 - 555 - ------- - - --- - - - ----------- - ------- - Netincomeattributable to Profitattributable to Himax Technologies, Inc. $ 3,684 $ (84 ) $ - $ 3,600 HimaxTechnologies, Inc. stockholders stockholders - ------- - - --- - - - ----------- - ------- - Basic earnings per ADS Basic earnings per ADS attributable to Himax $ 0.021 $ 0.021 attributable to Himax Technologies, Inc. Technologies, stockholders Inc.stockholders - ------- - - ------- - Diluted earnings per ADS Dilutedearningsper ADS attributable to Himax $ 0.021 $ 0.021 attributable to Himax Technologies, Inc. Technologies, Inc. stockholders stockholders - ------- - - ------- - Basic Weighted Average 172,401 172,401 Basic Weighted Average Outstanding ADS Outstanding ADS Diluted Weighted Average 172,448 172,448 Diluted Weighted Average Outstanding ADS Outstanding ADS

Himax Technologies, Inc. Reconciliation of unaudited condensed consolidated statement of profit or loss for theninemonths endedSeptember30, 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 -------------------------- ----------- -------- ------------ ----------- -------------------------- ---- Revenues $ 504,086 $ - $ - $ 504,086 Revenues Costs and expenses: Costs and expenses: Cost of revenues 381,643 - - 381,643 Cost of revenues Research and development 88,241 34 - 88,275 Research and development G General and administrative 15,201 (141 ) - 15,060 General and administrative G Sales and marketing 14,972 56 - 15,028 Sales and marketing G - ------- - - ---- - - - -------- - ------- - Total costs and expenses 500,057 (51 ) - 500,006 Total costs and expenses - ------- - - ---- - - - -------- - ------- - Operating income 4,029 51 - 4,080 Operating income - ------- - - ---- - - - -------- - ------- - Non operating income Non operating income (loss): (loss): Interest income 1,671 - - 1,671 Interest income Changes in fair value of 162 - - 162 financial assets at fair Gain on sale of value through profit or securities, net loss Equity in losses of equity (717 ) - - (717 ) Share of losses of method investees associates Foreign currency exchange (1,240 ) (97 ) - (1,337 ) Foreign currency exchange F losses, net losses, net Interest expense (395 ) (233 ) - (628 ) Finance costs A-3 Other income, net 9 - - 9 Other income, net - ------- - - ---- - - - -------- - ------- - (510 ) (330 ) - (840 ) - ------- - - ---- - - - -------- - ------- - Earningsbefore income 3,519 (279 ) - 3,240 Profitbefore income taxes taxes Income tax expense 563 2 - 565 Income tax expense F - ------- - - ---- - - - -------- - ------- - Netincome 2,956 (281 ) - 2,675 Profitfor the period Net loss attributable to 1,462 (1 ) - 1,461 Loss attributable to F noncontrolling interests noncontrolling interests - ------- - - ---- - - - -------- - ------- - Net income attributable to Profit attributable to Himax Technologies, Inc. $ 4,418 $ (282 ) $ - $ 4,136 HimaxTechnologies, Inc. stockholders stockholders - ------- - - ---- - - - -------- - ------- - Basic earnings per ADS Basic earnings per ADS attributable to Himax $ 0.026 $ 0.024 attributable to Himax Technologies, Inc. Technologies, stockholders Inc.stockholders - ------- - - ------- - Diluted earnings per ADS Diluted earnings per ADS attributable to Himax $ 0.026 $ 0.024 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 Average 172,414 172,414 Diluted Weighted Average Outstanding ADS Outstanding 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 September 30, 2018, we reclassified comparative period information as follows:A-1)As of September 30, 2017, we had $10,124 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 $9,473 thousand and $651 thousand, respectively, under IFRS.A-2)As of September 30, 2017, we had $12,110 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 $1,548 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 September 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 $1,101 thousand. After the above adjustments, we had $4,757 thousand reported as financial liability at amortized cost-noncurrent under IFRS.For the nine months and three months ended September 30, 2017, interest expense (finance costs) was adjusted for an increase of $233 thousand and $79 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 September 30, 2017, the amounts reclassified from allowance of sales returns and discounts to provisions was $1,440 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 September 30, 2017, property, plant and equipment, net of $3,031 thousand were reclassified to other intangible assets, net and other non-current assets at amounts of $674 thousand and $2,357 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 September 30, 2017, the amounts reclassified from deferred tax assets to deferred tax liabilities was $1,274 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 September 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 September 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, $17 thousand, $57 thousand and an increase of $1,026 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 nine months and three months ended September 30, 2017, operating expense for share-based compensation was adjusted for a decrease of $51 thousand and $3 thousand, respectively.

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

September30, Note 2017 ----------- ---- Equity attributable to Himax under U.S. GAAP $ 432,521 Financial liability at amortized cost (1,101 ) A-3 Employee benefits (132 ) F - ------- - (1,233 ) Equity attributable to Himax under IFRS $ 431,288 - ------- -

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