Taiwan Semiconductor Manufacturing Company Ltd. |
||||
Date: January 28, 2010 | By | /s/ Lora Ho | ||
Lora Ho | ||||
Vice President & Chief Financial Officer | ||||
4Q09 | Quarterly Management Report January 28, 2010 |
• | Revenue Analysis | |
• | Profit & Expense Analysis | |
• | Financial Condition Review | |
• | Cash Flow | |
• | CapEx & Capacity | |
• | Recap of Recent Important Events & Announcements |
(Amounts are on consolidated basis and are in NT billions except otherwise noted) | 4Q09 | 3Q09 | 4Q08 | 2009 | 2008 | |||||||||||||||
EPS (NT$ per common share) |
1.26 | 1.18 | 0.48 | 3.44 | 3.81 | |||||||||||||||
(US$ per ADR unit) |
0.19 | 0.18 | 0.07 | 0.52 | 0.61 | |||||||||||||||
Consolidated Net Sales |
92.09 | 89.94 | 64.56 | 295.74 | 333.16 | |||||||||||||||
Gross Profit |
44.70 | 42.86 | 20.19 | 129.33 | 141.75 | |||||||||||||||
Gross Margin |
48.5 | % | 47.7 | % | 31.3 | % | 43.7 | % | 42.5 | % | ||||||||||
Operating Expense |
(11.05 | ) | (10.87 | ) | (8.17 | ) | (37.37 | ) | (37.31 | ) | ||||||||||
Operating Income |
33.64 | 31.99 | 12.02 | 91.96 | 104.44 | |||||||||||||||
Operating Margin |
36.5 | % | 35.6 | % | 18.6 | % | 31.1 | % | 31.4 | % | ||||||||||
Non-Operating Items |
1.73 | 0.97 | 1.07 | 3.50 | 7.04 | |||||||||||||||
Net Income |
32.67 | 30.55 | 12.45 | 89.22 | 99.93 | |||||||||||||||
Net Profit Margin |
35.5 | % | 34.0 | % | 19.3 | % | 30.2 | % | 30.0 | % | ||||||||||
Wafer Shipment (kpcs 8 inch-equiv.) |
2,430 | 2,445 | 1,532 | 7,737 | 8,467 |
Note: | Total outstanding shares were 25,903mn units on 12/31/09 |
• | Consolidated net sales were NT$92.09 billion, increased 2.4% from NT$89.94 billion in the prior quarter and 42.6% from NT$64.56 billion in the year-ago quarter. | |
• | Gross margin was 48.5%, showing 0.8 percentage point increase from 3Q09 and a 17.2 percentage point increase from 4Q08. | |
• | Operating margin was 36.5%, 0.9 percentage point higher than 3Q09 and 17.9 percentage points higher than 4Q08. | |
• | Consolidated net income attributable to shareholders of the parent company was NT$32.67 billion, increased 6.9% from 3Q09. Net profit margin was 35.5% and diluted EPS was NT$1.26. |
• | Consolidated net sales were NT$295.74 billion, representing an 11.2% decline from 2008. | |
• | In spite of lower net sales, gross margin was 43.7%, increased 1.2 percentage points from 42.5% in 2008. Operating margin was 31.1%, declined 0.3 percentage point from 2008. | |
• | Earnings per share was NT$3.44, with net profit margin of 30.2%. |
TSMC January 28, 2010 |
Page 2 |
By Application | 4Q09 | 3Q09 | 4Q08 | |||||||||
Computer |
33 | % | 28 | % | 30 | % | ||||||
Communication |
39 | % | 42 | % | 39 | % | ||||||
Consumer |
13 | % | 16 | % | 16 | % | ||||||
Industrial/Others |
15 | % | 14 | % | 15 | % |
By Technology | 4Q09 | 3Q09 | 4Q08 | |||||||||
40/45nm |
9 | % | 4 | % | 0 | % | ||||||
65nm |
30 | % | 31 | % | 27 | % | ||||||
90nm |
16 | % | 18 | % | 21 | % | ||||||
0.11/0.13um |
15 | % | 14 | % | 17 | % | ||||||
0.15/0.18um |
18 | % | 21 | % | 22 | % | ||||||
0.25/0.35um |
9 | % | 9 | % | 10 | % | ||||||
0.50um+ |
3 | % | 3 | % | 3 | % |
By Customer Type | 4Q09 | 3Q09 | 4Q08 | |||||||||
Fabless/System |
79 | % | 80 | % | 72 | % | ||||||
IDM |
21 | % | 20 | % | 28 | % |
By Geography | 4Q09 | 3Q09 | 4Q08 | |||||||||
North America |
71 | % | 70 | % | 72 | % | ||||||
Asia Pacific |
13 | % | 13 | % | 11 | % | ||||||
China |
3 | % | 3 | % | 2 | % | ||||||
Europe |
10 | % | 11 | % | 11 | % | ||||||
Japan |
3 | % | 3 | % | 4 | % |
(In NT billions) | 4Q09 | 3Q09 | 4Q08 | 2009 | 2008 | |||||||||||||||
COGS |
47.39 | 47.08 | 44.37 | 166.41 | 191.41 | |||||||||||||||
Depreciation |
18.60 | 18.37 | 19.29 | 74.48 | 74.70 | |||||||||||||||
Other MFG Cost |
28.79 | 28.71 | 25.08 | 91.93 | 116.71 | |||||||||||||||
Gross Profit |
44.70 | 42.86 | 20.19 | 129.33 | 141.75 | |||||||||||||||
Gross Margin |
48.5 | % | 47.7 | % | 31.3 | % | 43.7 | % | 42.5 | % |
TSMC January 28, 2010 |
Page 3 |
(In NT billions) | 4Q09 | 3Q09 | 4Q08 | 2009 | 2008 | |||||||||||||||
Total Operating Exp. |
11.05 | 10.87 | 8.17 | 37.37 | 37.31 | |||||||||||||||
SG&A |
4.48 | 4.67 | 3.34 | 15.78 | 15.83 | |||||||||||||||
Research & Development |
6.57 | 6.20 | 4.83 | 21.59 | 21.48 | |||||||||||||||
Total Operating Exp. as a
% of Sales |
12.0 | % | 12.1 | % | 12.7 | % | 12.6 | % | 11.1 | % |
(In NT billions) | 4Q09 | 3Q09 | 4Q08 | 2009 | 2008 | |||||||||||||||
Non-Operating Inc./(Exp.) |
1.43 | 0.52 | 1.41 | 3.45 | 6.34 | |||||||||||||||
Net Interest Income/(Exp.) |
0.35 | 0.42 | 1.18 | 2.21 | 4.76 | |||||||||||||||
Other Non-Operating |
1.08 | 0.10 | 0.23 | 1.24 | 1.58 | |||||||||||||||
L-T Investments |
0.30 | 0.45 | (0.34 | ) | 0.05 | 0.70 | ||||||||||||||
SSMC |
0.29 | 0.26 | (0.07 | ) | 0.43 | 0.76 | ||||||||||||||
Others |
0.01 | 0.19 | (0.27 | ) | (0.38 | ) | (0.06 | ) | ||||||||||||
Total Non-Operating Items |
1.73 | 0.97 | 1.07 | 3.50 | 7.04 |
TSMC January 28, 2010 |
Page 4 |
(In NT billions) | 4Q09 | 3Q09 | 4Q08 | |||||||||
Cash & Marketable Securities |
195.80 | 180.32 | 211.45 | |||||||||
Accounts Receivable — Trade |
35.38 | 35.88 | 18.50 | |||||||||
Inventory |
20.91 | 19.18 | 14.88 | |||||||||
Total Current Assets |
259.80 | 244.24 | 252.62 | |||||||||
Accounts Payable |
40.61 | 26.30 | 14.04 | |||||||||
Current Portion of Bonds Payable |
0.00 | 0.00 | 8.00 | |||||||||
Accrued Employee Profit Sharing / Bonus |
13.43 | 8.62 | 15.37 | |||||||||
Accrued Liabilities and Others |
25.09 | 20.09 | 19.40 | |||||||||
Total Current Liabilities |
79.13 | 55.01 | 56.81 | |||||||||
Current Ratio (x) |
3.3 | 4.4 | 4.4 | |||||||||
Net Working Capital |
180.67 | 189.23 | 195.81 |
(In Number of Days) | 4Q09 | 3Q09 | 4Q08 | |||||||||
Days of Receivable |
36 | 36 | 46 | |||||||||
Days of Inventory |
42 | 41 | 40 |
(In NT billions) | 4Q09 | 3Q09 | 4Q08 | |||||||||
Cash & Marketable Securities |
195.80 | 180.32 | 211.45 | |||||||||
Interest-Bearing Debt |
15.09 | 15.33 | 23.44 | |||||||||
Net Cash Reserves |
180.71 | 164.99 | 188.01 |
TSMC January 28, 2010 |
Page 5 |
(In NT billions) | 4Q09 | 3Q09 | 4Q08 | |||||||||
Net Income |
32.67 | 30.55 | 12.45 | |||||||||
Depreciation & Amortization |
20.28 | 20.00 | 20.96 | |||||||||
Employee Profit Sharing Payment* |
n.a | (7.49 | ) | n.a | ||||||||
Other Operating Sources/(Uses) |
9.05 | 3.60 | 29.83 | |||||||||
Total Operating Sources/(Uses) |
62.00 | 46.66 | 63.24 | |||||||||
Capital Expenditure |
(42.71 | ) | (32.04 | ) | (11.26 | ) | ||||||
Marketable Financial Instruments |
(3.59 | ) | (18.94 | ) | 30.31 | |||||||
Other Investing Sources/(Uses) |
(0.80 | ) | (0.53 | ) | (1.04 | ) | ||||||
Net Investing Sources/(Uses) |
(47.10 | ) | (51.51 | ) | 18.01 | |||||||
Cash Dividends |
0.00 | (76.88 | ) | 0.00 | ||||||||
Other Financing Sources/(Uses) |
(0.28 | ) | (0.11 | ) | (0.30 | ) | ||||||
Net Financing Sources/(Uses) |
(0.28 | ) | (76.99 | ) | (0.30 | ) | ||||||
Net Cash Position Changes |
14.62 | (81.84 | ) | 80.95 | ||||||||
Exchange Rate Changes & Others |
(0.28 | ) | (0.74 | ) | 1.21 | |||||||
Ending Cash Balance |
171.28 | 156.94 | 194.61 |
* | Starting 2008, Taiwan accounting rule requires company to expense employee profit sharing |
(In NT billions) | 2009 | 2008 | Diff. | |||||||||
Net Income |
89.22 | 99.93 | (10.71 | ) | ||||||||
Depreciation & Amortization |
80.81 | 81.51 | (0.70 | ) | ||||||||
Employee Profit Sharing Payment* |
(7.49 | ) | 0.00 | (7.49 | ) | |||||||
Other Operating Sources/(Uses) |
(2.57 | ) | 40.05 | (42.62 | ) | |||||||
Total Operating Sources/(Uses) |
159.97 | 221.49 | (61.52 | ) | ||||||||
Capital Expenditure |
(87.78 | ) | (59.22 | ) | (28.56 | ) | ||||||
Marketable Financial Instruments |
(7.04 | ) | 52.35 | (59.39 | ) | |||||||
Other Investing Sources/(Uses) |
(1.65 | ) | (1.17 | ) | (0.48 | ) | ||||||
Net Investing Sources/(Uses) |
(96.47 | ) | (8.04 | ) | (88.43 | ) | ||||||
Cash Dividends |
(76.88 | ) | (76.78 | ) | (0.10 | ) | ||||||
Employee Profit Sharing* |
0.00 | (3.94 | ) | 3.94 | ||||||||
Repayment of Bonds Payable |
(8.00 | ) | 0.00 | (8.00 | ) | |||||||
Repurchase of Treasury Stock |
0.00 | (33.48 | ) | 33.48 | ||||||||
Other Financing Sources/(Uses) |
(0.59 | ) | (1.19 | ) | 0.60 | |||||||
Net Financing Sources/(Uses) |
(85.47 | ) | (115.39 | ) | 29.92 | |||||||
Net Cash Position Changes |
(21.97 | ) | 98.06 | (120.03 | ) | |||||||
Exchange Rate Changes & Others |
(1.36 | ) | 1.56 | (2.92 | ) | |||||||
Ending Cash Balance |
171.28 | 194.61 | (23.33 | ) |
* | Starting 2008, Taiwan accounting rule requires company to expense employee profit sharing |
TSMC January 28, 2010 |
Page 6 |
(In US millions) | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009 | 2008 | ||||||||||||||||||
TSMC |
161 | 218 | 963 | 1,304 | 2,646 | 1,807 | ||||||||||||||||||
XinTec and GUC |
2 | 3 | 6 | 1 | 12 | 23 | ||||||||||||||||||
TSMC China & WaferTech |
3 | 3 | 0 | 4 | 10 | 52 | ||||||||||||||||||
Other TSMC Subsidiaries |
0 | 0 | 2 | 1 | 3 | 4 | ||||||||||||||||||
Total TSMC |
166 | 224 | 971 | 1,310 | 2,671 | 1,886 |
1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009 | 1Q10 | |||||||||||||||||||
Fab / (Wafer size) | (A) | (A) | (A) | (A) | (A) | (F) | ||||||||||||||||||
Fab-2
(6²)(1) |
274 | 280 | 283 | 283 | 1,121 | 263 | ||||||||||||||||||
Fab-3 (8²) |
286 | 289 | 292 | 283 | 1,150 | 268 | ||||||||||||||||||
Fab-5 (8²) |
162 | 149 | 144 | 144 | 599 | 139 | ||||||||||||||||||
Fab-6 (8²) |
295 | 284 | 287 | 287 | 1,154 | 269 | ||||||||||||||||||
Fab-8 (8²) |
275 | 271 | 265 | 255 | 1,066 | 247 | ||||||||||||||||||
Fab-12 (12²)(2) |
218 | 219 | 199 | 243 | 879 | 269 | ||||||||||||||||||
Fab-14 (12²)(2) |
238 | 238 | 239 | 243 | 958 | 255 | ||||||||||||||||||
WaferTech (8²) |
106 | 107 | 109 | 109 | 431 | 106 | ||||||||||||||||||
TSMC China (8²) |
128 | 134 | 135 | 135 | 531 | 132 | ||||||||||||||||||
TSMC
total capacity (8² equiv. Kpcs) |
2,431 | 2,419 | 2,379 | 2,467 | 9,695 | 2,488 | ||||||||||||||||||
SSMC (8²) |
64 | 65 | 65 | 65 | 259 | 69 | ||||||||||||||||||
Total
managed capacity (8² equiv. Kpcs) |
2,495 | 2,483 | 2,444 | 2,532 | 9,955 | 2,557 |
(1) | Figures represent number of 6² wafers. Conversion to 8²-equivalent wafers is obtained by dividing this number by 1.78 | |
(2) | Figures represent number of 12² wafers. Conversion to 8²-equivalent wafers is obtained by multiplying this number by 2.25 |
TSMC January 28, 2010 |
Page 7 |
• | TSMC Announces Process Technologies For Integrated LED Drivers ( 2009/12/15 ) | |
• | TSMC and Motech Announce Strategic Partnership ( 2009/12/09 ) | |
• | TSMC Recognizes Supplier Excellence at Supply Chain Management Forum ( 2009/12/04 ) | |
• | TSMC Launches Automotive Process Qualification Specification and Service Package in China Market ( 2009/11/27 ) | |
• | TSMC Announces Settlement of SMIC Trade Secret Litigation ( 2009/11/10 ) | |
• | Infineon and TSMC Extend Technology And Production Partnership Agreement; Will Jointly Develop 65nm Embedded Flash Process Technology For Automotive and Chip Card Applications ( 2009/11/05 ) |
TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) (1) |
December 31, 2009 (audited) | September 30, 2009 (unaudited) | December 31, 2008 (audited) | QoQ | YoY | |||||||||||||||||||||||||||||||||||||||||
USD | NTD | % | NTD | % | NTD | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||
ASSETS |
|||||||||||||||||||||||||||||||||||||||||||||
Current Assets |
|||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents |
$ | 5,347 | $ | 171,276 | 28.8 | $ | 156,935 | 29.0 | $ | 194,614 | 34.8 | $ | 14,341 | 9.1 | ($23,338 | ) | (12.0 | ) | |||||||||||||||||||||||||||
Investments in Marketable Financial Instruments |
766 | 24,521 | 4.1 | 23,384 | 4.3 | 16,836 | 3.0 | 1,137 | 4.9 | 7,685 | 45.6 | ||||||||||||||||||||||||||||||||||
Accounts Receivable — Trade |
1,105 | 35,382 | 5.9 | 35,881 | 6.6 | 18,497 | 3.3 | (499 | ) | (1.4 | ) | 16,885 | 91.3 | ||||||||||||||||||||||||||||||||
Inventories, Net |
653 | 20,914 | 3.5 | 19,176 | 3.5 | 14,877 | 2.7 | 1,738 | 9.1 | 6,037 | 40.6 | ||||||||||||||||||||||||||||||||||
Other Current Assets |
240 | 7,711 | 1.4 | 8,865 | 1.7 | 7,795 | 1.4 | (1,154 | ) | (13.0 | ) | (84 | ) | (1.1 | ) | ||||||||||||||||||||||||||||||
Total Current Assets |
8,111 | 259,804 | 43.7 | 244,241 | 45.1 | 252,619 | 45.2 | 15,563 | 6.4 | 7,185 | 2.8 | ||||||||||||||||||||||||||||||||||
Long-Term Investments |
1,182 | 37,845 | 6.4 | 38,553 | 7.1 | 39,982 | 7.2 | (708 | ) | (1.8 | ) | (2,137 | ) | (5.3 | ) | ||||||||||||||||||||||||||||||
Properties, Plant and Equipment |
30,204 | 967,419 | 162.7 | 911,844 | 168.3 | 862,461 | 154.3 | 55,575 | 6.1 | 104,958 | 12.2 | ||||||||||||||||||||||||||||||||||
Less: Accumulated Depreciation |
(21,660 | ) | (693,744 | ) | (116.7 | ) | (675,028 | ) | (124.6 | ) | (618,816 | ) | (110.7 | ) | (18,716 | ) | 2.8 | (74,928 | ) | 12.1 | |||||||||||||||||||||||||
Properties, Plant and Equipment, Net |
8,544 | 273,675 | 46.0 | 236,816 | 43.7 | 243,645 | 43.6 | 36,859 | 15.6 | 30,030 | 12.3 | ||||||||||||||||||||||||||||||||||
Other Assets |
730 | 23,372 | 3.9 | 22,287 | 4.1 | 22,671 | 4.0 | 1,085 | 4.9 | 701 | 3.1 | ||||||||||||||||||||||||||||||||||
Total Assets |
$ | 18,567 | $ | 594,696 | 100.0 | $ | 541,897 | 100.0 | $ | 558,917 | 100.0 | $ | 52,799 | 9.7 | $ | 35,779 | 6.4 | ||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||||||||||||||||||||||||||||||||||||||||
Current Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||
Accounts Payables |
$ | 365 | $ | 11,689 | 2.0 | $ | 10,633 | 2.0 | $ | 6,043 | 1.1 | $ | 1,056 | 9.9 | $ | 5,646 | 93.4 | ||||||||||||||||||||||||||||
Payables to Contractors and Equipment Suppliers |
903 | 28,924 | 4.9 | 15,666 | 2.9 | 7,999 | 1.4 | 13,258 | 84.6 | 20,925 | 261.6 | ||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities |
1,173 | 37,571 | 6.2 | 28,401 | 5.2 | 34,543 | 6.2 | 9,170 | 32.3 | 3,028 | 8.8 | ||||||||||||||||||||||||||||||||||
Current Portion of Bonds Payable and Long-Term Debts |
30 | 949 | 0.2 | 309 | 0.1 | 8,222 | 1.5 | 640 | 207.7 | (7,273 | ) | (88.5 | ) | ||||||||||||||||||||||||||||||||
Total Current Liabilities |
2,471 | 79,133 | 13.3 | 55,009 | 10.2 | 56,807 | 10.2 | 24,124 | 43.9 | 22,326 | 39.3 | ||||||||||||||||||||||||||||||||||
Bonds Payable |
140 | 4,500 | 0.8 | 4,500 | 0.8 | 4,500 | 0.8 | ||||||||||||||||||||||||||||||||||||||
Other Long-Term Liabilities |
375 | 12,015 | 2.0 | 15,761 | 2.9 | 17,237 | 3.1 | (3,746 | ) | (23.8 | ) | (5,222 | ) | (30.3 | ) | ||||||||||||||||||||||||||||||
Total Liabilities |
2,986 | 95,648 | 16.1 | 75,270 | 13.9 | 78,544 | 14.1 | 20,378 | 27.1 | 17,104 | 21.8 | ||||||||||||||||||||||||||||||||||
Shareholders’ Equity Attributable to Shareholders of the Parent |
|||||||||||||||||||||||||||||||||||||||||||||
Capital Stock at Par Value |
8,087 | 259,027 | 43.6 | 259,007 | 47.8 | 256,254 | 45.8 | 20 | 0.0 | 2,773 | 1.1 | ||||||||||||||||||||||||||||||||||
Capital Surplus |
1,732 | 55,486 | 9.3 | 55,440 | 10.2 | 49,875 | 8.9 | 46 | 0.1 | 5,611 | 11.2 | ||||||||||||||||||||||||||||||||||
Legal Capital Reserve (2) |
2,414 | 77,317 | 13.0 | 77,317 | 14.3 | 67,324 | 12.0 | — | — | 9,993 | 14.8 | ||||||||||||||||||||||||||||||||||
Special Capital Reserve (2) |
— | — | — | — | — | 392 | 0.1 | — | (392 | ) | (100.0 | ) | |||||||||||||||||||||||||||||||||
Unappropriated Earnings (2) |
3,265 | 104,565 | 17.5 | 71,899 | 13.3 | 102,338 | 18.3 | 32,666 | 45.4 | 2,227 | 2.2 | ||||||||||||||||||||||||||||||||||
Treasury Stock |
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Others |
(41 | ) | (1,312 | ) | (0.2 | ) | (778 | ) | (0.2 | ) | 194 | 0.1 | (534 | ) | 68.8 | (1,506 | ) | (777.5 | ) | ||||||||||||||||||||||||||
Total Equity Attributable to Shareholders of the Parent |
15,457 | 495,083 | 83.2 | 462,885 | 85.4 | 476,377 | 85.2 | 32,198 | 7.0 | 18,706 | 3.9 | ||||||||||||||||||||||||||||||||||
Minority Interests |
124 | 3,965 | 0.7 | 3,742 | 0.7 | 3,996 | 0.7 | 223 | 6.0 | (31 | ) | (0.7 | ) | ||||||||||||||||||||||||||||||||
Total Shareholders’ Equity |
15,581 | 499,048 | 83.9 | 466,627 | 86.1 | 480,373 | 85.9 | 32,421 | 6.9 | 18,675 | 3.9 | ||||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity |
$ | 18,567 | $ | 594,696 | 100.0 | $ | 541,897 | 100.0 | $ | 558,917 | 100.0 | $ | 52,799 | 9.7 | $ | 35,779 | 6.4 | ||||||||||||||||||||||||||||
Note : | ||
(1) | Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$32.030 as of December 31, 2009. | |
(2) | Certain prior period balances have been reclassified to conform to the current period presentation. |
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Unaudited Consolidated Condensed Income Statements For the Three Months Ended December 31, 2009, September 30, 2009, December 31, 2008 (Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”) (1) Except for Per Share Amounts and Shares Outstanding) |
4Q 2009 | 3Q 2009 | 4Q 2008 | QoQ | YoY | ||||||||||||||||||||||||||||||||||||||||
USD | NTD | % | NTD | % | NTD | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||||||
Net Sales |
$ | 2,849 | $ | 92,094 | 100.0 | $ | 89,936 | 100.0 | $ | 64,562 | 100.0 | $ | 2,158 | 2.4 | $ | 27,532 | 42.6 | |||||||||||||||||||||||||||
Cost of Sales |
(1,466 | ) | (47,399 | ) | (51.5 | ) | (47,078 | ) | (52.3 | ) | (44,367 | ) | (68.7 | ) | (321 | ) | 0.7 | (3,032 | ) | 6.8 | ||||||||||||||||||||||||
Gross Profit |
1,383 | 44,695 | 48.5 | 42,858 | 47.7 | 20,195 | 31.3 | 1,837 | 4.3 | 24,500 | 121.3 | |||||||||||||||||||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||||||||||||||||||
Research and Development Expenses |
(203 | ) | (6,567 | ) | (7.1 | ) | (6,202 | ) | (6.9 | ) | (4,826 | ) | (7.5 | ) | (365 | ) | 5.9 | (1,741 | ) | 36.1 | ||||||||||||||||||||||||
General and Administrative Expenses |
(101 | ) | (3,269 | ) | (3.6 | ) | (3,541 | ) | (3.9 | ) | (2,285 | ) | (3.5 | ) | 272 | (7.7 | ) | (984 | ) | 43.0 | ||||||||||||||||||||||||
Sales and Marketing Expenses |
(38 | ) | (1,217 | ) | (1.3 | ) | (1,131 | ) | (1.3 | ) | (1,062 | ) | (1.6 | ) | (86 | ) | 7.6 | (155 | ) | 14.6 | ||||||||||||||||||||||||
Total Operating Expenses |
(342 | ) | (11,053 | ) | (12.0 | ) | (10,874 | ) | (12.1 | ) | (8,173 | ) | (12.7 | ) | (179 | ) | 1.6 | (2,880 | ) | 35.2 | ||||||||||||||||||||||||
Income from Operations |
1,041 | 33,642 | 36.5 | 31,984 | 35.6 | 12,022 | 18.6 | 1,658 | 5.2 | 21,620 | 179.8 | |||||||||||||||||||||||||||||||||
Non-Operating Income, Net |
44 | 1,427 | 1.6 | 519 | 0.6 | 1,412 | 2.2 | 908 | 174.7 | 15 | 1.0 | |||||||||||||||||||||||||||||||||
Investment Gains |
9 | 299 | 0.3 | 454 | 0.5 | (340 | ) | -0.5 | (155 | ) | (34.0 | ) | 639 | (187.9 | ) | |||||||||||||||||||||||||||||
Income before Income Tax |
1,094 | 35,368 | 38.4 | 32,957 | 36.6 | 13,094 | 20.3 | 2,411 | 7.3 | 22,274 | 170.1 | |||||||||||||||||||||||||||||||||
Income Tax Expenses |
(77 | ) | (2,508 | ) | (2.7 | ) | (2,285 | ) | (2.5 | ) | (452 | ) | (0.7 | ) | (223 | ) | 9.8 | (2,056 | ) | 454.7 | ||||||||||||||||||||||||
Net Income |
1,017 | 32,860 | 35.7 | 30,672 | 34.1 | 12,642 | 19.6 | 2,188 | 7.1 | 20,218 | 159.9 | |||||||||||||||||||||||||||||||||
Minority Interests |
(6 | ) | (194 | ) | (0.2 | ) | (121 | ) | (0.1 | ) | (196 | ) | (0.3 | ) | (73 | ) | 60.2 | 2 | (0.8 | ) | ||||||||||||||||||||||||
Net Income Attributable to Shareholders of
the Parent |
1,011 | 32,666 | 35.5 | 30,551 | 34.0 | 12,446 | 19.3 | 2,115 | 6.9 | 20,220 | 162.5 | |||||||||||||||||||||||||||||||||
Earnings per Share — Diluted |
$ | 0.04 | $ | 1.26 | $ | 1.18 | $ | 0.48 | $ | 0.08 | 7.2 | $ | 0.78 | 162.7 | ||||||||||||||||||||||||||||||
Earnings per ADR — Diluted (2) |
$ | 0.19 | $ | 6.30 | $ | 5.88 | $ | 2.40 | $ | 0.42 | 7.2 | $ | 3.90 | 162.7 | ||||||||||||||||||||||||||||||
Weighted Average Outstanding Shares — Diluted (‘M) (3) |
25,916 | 25,984 | 25,942 |
Note: | ||
(1) | Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD32.320 for the fourth quarter of 2009. | |
(2) | 1 ADR equals 5 ordinary shares. | |
(3) | Total diluted weighted average outstanding shares were 25,942M shares for 4Q08 after the retroactive adjustments for stock dividends and stock bonus. |
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Audited Consolidated Condensed Income Statements For the Year Ended December 31, 2009 and 2008 (Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”) (1) Except for Per Share Amounts and Shares Outstanding) |
For the Year Ended December 31 | ||||||||||||||||||||||||||||
2009 | 2008 | YoY | ||||||||||||||||||||||||||
USD | NTD | % | NTD | % | Amount | % | ||||||||||||||||||||||
Net Sales |
$ | 8,998 | $ | 295,742 | 100.0 | $ | 333,158 | 100.0 | ($37,416 | ) | (11.2 | ) | ||||||||||||||||
Cost of Sales |
(5,063 | ) | (166,413 | ) | (56.3 | ) | (191,408 | ) | (57.5 | ) | 24,995 | (13.1 | ) | |||||||||||||||
Gross Profit |
3,935 | 129,329 | 43.7 | 141,750 | 42.5 | (12,421 | ) | (8.8 | ) | |||||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Research and Development Expenses |
(657 | ) | (21,593 | ) | (7.3 | ) | (21,481 | ) | (6.4 | ) | (112 | ) | 0.5 | |||||||||||||||
General and Administrative Expenses |
(343 | ) | (11,286 | ) | (3.8 | ) | (11,097 | ) | (3.3 | ) | (189 | ) | 1.7 | |||||||||||||||
Sales and Marketing Expenses |
(137 | ) | (4,488 | ) | (1.5 | ) | (4,737 | ) | (1.4 | ) | 249 | (5.3 | ) | |||||||||||||||
Total Operating Expenses |
(1,137 | ) | (37,367 | ) | (12.6 | ) | (37,315 | ) | (11.1 | ) | (52 | ) | 0.1 | |||||||||||||||
Income from Operations |
2,798 | 91,962 | 31.1 | 104,435 | 31.4 | (12,473 | ) | (11.9 | ) | |||||||||||||||||||
Non-Operating Income, Net |
105 | 3,455 | 1.2 | 6,335 | 1.9 | (2,880 | ) | (45.5 | ) | |||||||||||||||||||
Investment Gains (Losses) |
1 | 46 | — | 702 | 0.2 | (656 | ) | (93.4 | ) | |||||||||||||||||||
Income before Income Tax |
2,904 | 95,463 | 32.3 | 111,472 | 33.5 | (16,009 | ) | (14.4 | ) | |||||||||||||||||||
Income Tax Expenses |
(182 | ) | (5,997 | ) | (2.0 | ) | (10,949 | ) | (3.3 | ) | 4,952 | (45.2 | ) | |||||||||||||||
Net Income |
2,722 | 89,466 | 30.3 | 100,523 | 30.2 | (11,057 | ) | (11.0 | ) | |||||||||||||||||||
Minority Interests |
(8 | ) | (248 | ) | (0.1 | ) | (590 | ) | (0.2 | ) | 342 | (57.9 | ) | |||||||||||||||
Net Income Attributable to Shareholders of
the Parent |
2,714 | 89,218 | 30.2 | 99,933 | 30.0 | (10,715 | ) | (10.7 | ) | |||||||||||||||||||
Earnings per Share — Diluted |
$ | 0.10 | $ | 3.44 | $ | 3.81 | ($0.37 | ) | (9.6 | ) | ||||||||||||||||||
Earnings per ADR — Diluted (2) |
$ | 0.52 | $ | 17.21 | $ | 19.05 | ($1.84 | ) | (9.6 | ) | ||||||||||||||||||
Weighted Average Outstanding Shares — Diluted (‘M) (3) |
25,914 | 26,236 |
Note: | ||
(1) | Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD 32.868 for the year ended December 31, 2009. | |
(2) | 1 ADR equals 5 ordinary shares. | |
(3) | Total diluted weighted average outstanding shares were 26,236M shares for the year ended December 31, 2008 after the retroactive adjustment for stock dividends. |
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flows For the Year Ended December 31, 2009 and for the Three Months Ended December 31, 2009, September 30, 2009, and December 31, 2008 (Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) (1) |
2009 | 4Q 2009 | 3Q 2009 | 4Q 2008 | |||||||||||||||||
(audited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
USD | NTD | NTD | NTD | NTD | ||||||||||||||||
Cash Flows from Operating Activities: |
||||||||||||||||||||
Net Income |
$ | 2,714 | $ | 89,218 | $ | 32,666 | $ | 30,551 | $ | 12,446 | ||||||||||
Net Income Attributable to Minority Interest |
8 | 248 | 194 | 121 | 196 | |||||||||||||||
Depreciation & Amortization |
2,459 | 80,815 | 20,277 | 20,001 | 20,961 | |||||||||||||||
Deferred Income Tax |
(53 | ) | (1,752 | ) | (630 | ) | (426 | ) | 154 | |||||||||||
Equity in Losses (Earnings) of Equity Method
Investees, Net |
(1 | ) | (46 | ) | (299 | ) | (454 | ) | 340 | |||||||||||
Changes in Working Capital & Others |
(260 | ) | (8,517 | ) | 9,791 | (3,138 | ) | 29,147 | ||||||||||||
Net Cash Provided by Operating Activities |
4,867 | 159,966 | 61,999 | 46,655 | 63,244 | |||||||||||||||
Cash Flows from Investing Activities: |
||||||||||||||||||||
Acquisitions of: |
||||||||||||||||||||
Marketable Financial Instruments |
(1,552 | ) | (51,025 | ) | (19,979 | ) | (20,827 | ) | (33,059 | ) | ||||||||||
Investments Accounted for Using Equity Method |
(1 | ) | (43 | ) | (11 | ) | (32 | ) | (1 | ) | ||||||||||
Property, Plant and Equipment |
(2,671 | ) | (87,785 | ) | (42,715 | ) | (32,038 | ) | (11,258 | ) | ||||||||||
Financial Assets Carried at Cost |
(10 | ) | (321 | ) | (51 | ) | (139 | ) | (73 | ) | ||||||||||
Proceeds from Disposal or maturity of: |
||||||||||||||||||||
Marketable Financial Instruments |
1,338 | 43,985 | 16,394 | 1,886 | 63,368 | |||||||||||||||
Property, Plant and Equipment |
1 | 24 | 17 | 2 | 24 | |||||||||||||||
Financial Assets Carried at Cost |
4 | 131 | 37 | 19 | 73 | |||||||||||||||
Others |
(44 | ) | (1,434 | ) | (794 | ) | (381 | ) | (1,061 | ) | ||||||||||
Net Cash Used In Investing Activities |
(2,935 | ) | (96,468 | ) | (47,102 | ) | (51,510 | ) | 18,013 | |||||||||||
Cash Flows from Financing Activities: |
||||||||||||||||||||
Decrease in Guarantee Deposits |
(15 | ) | (478 | ) | (151 | ) | (77 | ) | (140 | ) | ||||||||||
Proceeds from Exercise of Stock Options |
8 | 261 | 70 | 162 | 5 | |||||||||||||||
Bonus Paid to Directors and Supervisors |
— | — | — | — | — | |||||||||||||||
Repayment of Long-Term Bonds Payable |
(243 | ) | (8,000 | ) | — | — | — | |||||||||||||
Cash Dividends Paid for Common Stock |
(2,339 | ) | (76,876 | ) | — | (76,876 | ) | — | ||||||||||||
Repurchase of Treasury Stock |
— | — | — | — | — | |||||||||||||||
Cash Bonus Paid to Employees |
— | — | — | — | — | |||||||||||||||
Others |
(11 | ) | (378 | ) | (196 | ) | (191 | ) | (163 | ) | ||||||||||
Net Cash Used in Financing Activities |
(2,600 | ) | (85,471 | ) | (277 | ) | (76,982 | ) | (298 | ) | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents |
(668 | ) | (21,973 | ) | 14,620 | (81,837 | ) | 80,959 | ||||||||||||
Effect of Exchange Rate Changes and Others |
(42 | ) | (1,365 | ) | (279 | ) | (745 | ) | 1,209 | |||||||||||
Cash and Cash Equivalents at Beginning of Period |
5,921 | 194,614 | 156,935 | 239,517 | 112,446 | |||||||||||||||
Cash and Cash Equivalents at End of Period |
$ | 5,211 | $ | 171,276 | $ | 171,276 | $ | 156,935 | $ | 194,614 | ||||||||||
Note: | ||
(1) | Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD32.868 for the year ended December 31, 2009. |
TSMC |
2009 Fourth Quarter Investor Conference |
January 28, 2010 |
Agenda |
Welcome |
Elizabeth Sun |
4Q09 Financial Results and 1Q10 Outlook |
Lora Ho |
CEO Comments |
Morris Chang |
Q&A |
Morris Chang / Lora Ho |
Safe Harbor Notice |
TSMC’s statements of its current expectations are forward- looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. |
Information as to those factors that could cause actual results to vary can be found in TSMC’s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) on April 17, 2009 and such other documents as TSMC may file with, or submit to, the SEC from time to time. |
Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. |
4Q09 Financial Highlights |
* Total outstanding shares were 25,903mn units at 12/31/09 |
** ROE figures are annualized based on average equity attributable to shareholders of the parent. |
4Q09 3Q09 4Q08 (In NT billions except otherwise noted) Guidance Actual Actual |
Net Sales 92.09 90 — 92 89.94 64.56 2.4% 42.6% |
Gross Margin 48.5% 47% — 48.5% 47.7% 31.3% +0.8 ppt +17.2 ppts |
Operating Margin 36.5% 35.5% — 37% 35.6% 18.6% +0.9 ppt +17.9 ppts |
EPS — Diluted (NT$) 1.26 1.18 0.48 7.2% 162.6% |
Free Cash Flow 19.29 14.62 51.98 31.9% -62.9% |
ROE (%) 27.3% 27.3% 10.6% +0.0 ppt +16.7 ppts |
Shipment (Kpcs, 8"-equiv. Wafer) 2,430 2,445 1,532 -0.6% 58.6% |
Average Exchange Rate— NTD/USD 32.32 32.80 32.91 -1.5% -1.8% |
QoQ YoY 4Q09 |
Income Statements |
(In NT billions except otherwise noted) 4Q09 3Q09 4Q08 QoQ YoY |
Net Sales 92.09 89.94 64.56 2.4% 42.6% |
Gross Margin 48.5% 47.7% 31.3% +0.8 ppt +17.2 ppts |
Operating Expenses (11.05) (10.87) (8.17) 1.6% 35.2% |
Operating Margin 36.5% 35.6% 18.6% +0.9 ppt +17.9 ppts |
Non-Operating Items 1.43 0.52 1.41 174.7% 1.0% |
Long-Term Investment Gains 0.30 0.45 (0.34) -34.0% NM |
Taxes (2.51) (2.28) (0.45) 9.8% 454.7% |
Net Income 32.67 30.55 12.45 6.9% 162.5% |
Net Margin 35.5% 34.0% 19.3% +1.5 ppts +16.2 ppts |
EPS (NT Dollar) 1.26 1.18 0.48 7.2% 162.7% |
4Q09 Revenue by Applications |
Communications 39% |
Consumer 13% |
Computer 33% |
Industrial/Others 15% |
0.0 40.0 3Q09 4Q09 Revenue (NT$B) |
QoQ -8% 0.0 40.0 3Q09 4Q09 Revenue (NT$B) |
QoQ +22% 0.0 40.0 3Q09 4Q09 Revenue (NT$B) |
QoQ -15% Computer Communications Consumer |
4Q09 Revenue by Technology |
0 5 10 15 20 25 30 35 |
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 |
Revenue (NT$B) |
0% |
10% |
20% |
30% |
40% |
% of Sales (%) |
40nm Rev (NT$B) |
65nm Rev (NT$B) |
40/65nm combined as % of Sales |
65nm/40nm Revenue |
0.11/0.13um 15% |
0.15/0.18um 18% |
90nm 16% |
0.5um+ 3% |
0.25/0.35um 9% |
65nm 30% |
40nm 9% |
Balance Sheets & Key Indices |
(1) Asset productivity = Annualized net sales / Average net fixed assets. |
Selected Items from Balance Sheets |
(In NT billions excepted otherwise noted) |
Amount%Amount%Amount% |
Cash & Marketable Securities 195.80 32.9% 180.32 33.3% 211.45 37.8% |
Accounts Receivable — Trade 35.38 5.9% 35.88 6.6%18.50 3.3% |
Inventory 20.9 13.5% 19.18 3.5% 14.88 2.7% |
Long-Term Investment 37.85 6.4% 38.55 7.1% 39.98 7.2% |
Net PP&E 273.68 46.0% 236.82 43.7% 243.65 43.6% |
Total Assets 594.70 100.0% 541.90 100.0% 558.92 100.0% |
Current Liabilities 79.13 13.3%55.01 10.2% 56.81 10.2% |
Long-Term Interest-bearing Debt 10.96 1.8% 14.35 2.6% 15.22 2.7% |
Total Liabilities 95.65 16.1% 75.27 13.9% 78.54 14.1% |
Total Shareholders’ Equity 499.05 83.9% 466.63 86.1% 480.37 85.9% |
Key Indices |
A/R Turnover Days |
Inventory Turnover |
Days Current Ratio (x) |
Asset Productivity (x) |
4Q09 3Q09 4Q08 |
36 36 46 |
42 41 40 |
3.3 4.4 4.4 |
1.4 1.6 1.0 |
Cash Flows |
(1) Free cash flow = Operating cash flow — Capital expenditures. |
(In NT billions except otherwise noted) 4Q09 3Q09 4Q08 |
Beginning Balance 156.94 239.52 112.45 |
Cash from operating activities 62.00 46.66 63.24 |
Capital expenditures (42.71) (32.04) (11.26) |
Cash dividends 0.00 (76.88) 0.00 |
Share buyback 0.00 0.00 0.00 |
Short-term investments/others (4.95) (20.32) 30.18 |
Ending Balance 171.28 156.94 194.61 |
Free Cash Flow 19.29 14.62 51.98 |
Installed Capacity |
2009 Overall Capacity +6%; Advanced Capacity +11% |
(1) Figures represent number of 6” wafers. Conversion to 8”-equivalent wafers is obtained by dividing this number by 1.78. |
(2) Figures represent number of 12” wafers. Conversion to 8”-equivalent wafers is obtained by multiplying this number by 2.25. |
Fab-2 ( 6”) (1) 274 280 283 283 1,121 263 |
Fab-3 ( 8”) 286 289 292 283 1,150 268 |
Fab-5 ( 8”) 162 149 144 144 599 139 |
Fab-6 ( 8”) 295 284 287 287 1,154 269 |
Fab-8 ( 8”) 275 271 265 255 1,066 247 |
Fab-12 ( 12”) (2) 218 219 199 243 879 269 |
Fab-14 ( 12”) (2) 238 238 239 243 958 255 |
WaferTech ( 8”) 106 107 109 109 431 106 |
TSMC China ( 8”) 128 134 135 135 531 132 |
TSMC & Subsidiaries 2,431 2,419 2,379 2,467 9,695 2,488 |
(8” Equivalent Kpcs) |
SSMC ( 8”) 64 65 6565 259 69 |
Total TSMC-managed 2,4952,4832,4442,5329,9552,557 |
(8” Equivalent Kpcs) |
1Q10 (F) |
FAB / (Wafer size) |
2009 (A) |
1Q09 (A) |
2Q09 (A) |
3Q09 (A) |
4Q09 (A) |
Capital Expenditures |
(In US millions) 4Q09 2009 2008 |
TSMC 1,304 2,646 1,807 |
XinTec and GUC 1 12 23 |
TSMC China & WaferTech 4 10 52 |
Other TSMC Subsidiaries 1 3 4 |
TSMC Consolidated 1,310 2,671 1,886 |
Note: 2009 CapEx was based on the weighted average exchange rate of NT$32.868 per US dollar. |
2009 Financial Highlights |
Profitability remained resilient despite decline in top line |
Continued cash return to shareholders |
Balance sheet strength to invest for future growth |
(In NT billions except otherwise noted) |
Net Sales 295.74 333.16 |
Gross Margin 43.7% 42.5% |
Operating Margin 31.1% 31.4% |
EPS — Diluted (NT$) 3.44 3.81 |
Free Cash Flow (FCF) 72.19 162.27 |
Cash Dividends 76.88 76.78 |
Share Buybacks 0.00 30.43 |
Cash & Marketable Securities 195.80 211.45 |
ROE 18.4% 20.7% |
2009 2008 |
Guidance |
For the first quarter: |
Revenue to be between NT$89 billion and NT$91 billion, at a forecast exchange rate of 31.60 NT dollars to 1 US dollar |
Gross profit margin to be between 46.5% and 48.5% |
Operating profit margin to be between 35% and 37% |
2010 capital expenditure to be around US$ 4.8 billion |
Based on our current business outlook, management expects: |
Recap of Recent Major Events |
TSMC Announces Process Technologies For Integrated LED Drivers ( 2009/12/15 ) |
TSMC and Motech Announce Strategic Partnership ( 2009/12/09 ) |
TSMC Recognizes Supplier Excellence at Supply Chain Management Forum ( 2009/12/04 ) |
TSMC Launches Automotive Process Qualification Specification and Service |
Package in China Market ( 2009/11/27 ) |
TSMC Announces Settlement of SMIC Trade Secret Litigation ( 2009/11/10 ) |
Infineon and TSMC Extend Technology And Production Partnership Agreement; |
Will Jointly Develop 65nm Embedded Flash Process Technology For Automotive and Chip Card Applications ( 2009/11/05 ) |
* Please visit TSMC’s Web site (http://www.tsmc.com) for details and other announcements |
http://www.tsmc.com invest@tsmc.com |