Taiwan Semiconductor Manufacturing Co., Ltd. · TWSE:2330
Taiwan Semiconductor Manufacturing — Q4 2007 Earnings Presentation
17 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Feb 1, 2008
Slide 1: Operating and Free Cash Flows; CapEx & Capacity
Operating and Free Cash Flows: Cash flows generated from operating activities were NT$59.8 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$40 billion in 4Q07, bringing total free cash flow generated in 2007 to NT$99.8 bi
Slide 2: TSMC 2007 Fourth Quarter Investor Conference
TSMC 2007 Fourth Quarter Investor Conference January 31, 2008
Slide 3: Agenda
Agenda Welcome Elizabeth Sun 4Q07 Financial Results and 1Q08 Outlook Lora Ho CEO Comments Rick Tsai Q&A Rick Tsai / Lora Ho
Slide 4: Safe Harbor Notice
Safe Harbor Notice TSMC's statements of its current expectations are forward- looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. Information as to those factors that could cause actual res
Slide 5: 4Q07 Financial Highlights
4Q07 Financial Highlights Annualized ROE for the quarter based on average equity attributable to shareholders of the parent.
Slide 6: 4Q07 Revenue by Applications
4Q07 Revenue by Applications 3Q07 4Q07 QoQ Communications 34.801 36.502 Use total w/o adj Computer Communication Consumer Memory Others Rev % 35 42 15 3 5 Communications 42% Consumer 15% Computer 35% Industrial/Others 5% Memory 3% QoQ +5% 3Q07 4Q07 QoQ Computer 26.315 30.176 Use total w/o adj QoQ +1
Slide 7: 4Q07 Revenue by Technology
4Q07 Revenue by Technology 65nm 90nm 0.11/0.13um 0.15/0.18um 0.25/0.35um 0.5um+ Tech 10 29 20 27 10 4 0.11/0.13um 20% 0.15/0.18um 27% 90nm 29% 0.5um+ 4% 0.25/0.35um 10% 65nm 10% 1Q07 2Q07 3Q07 4Q07 Rev (NT$B) 0.46 2.324 5.582 8.625 % of Sales 0.01 0.03 0.07 0.1 65nm revenue increased by more than 17
Slide 8: Margin Expansion Driven by Cost Improvement and Operating Leverage
Margin Expansion Driven by Cost Improvement and Operating Leverage
Slide 9: Strong Balance Sheet Entering 2008
Strong Balance Sheet Entering 2008 Asset productivity is defined as annualized net sales/average net fixed assets.
Slide 10: Continued Strong Cash Flows
Continued Strong Cash Flows Free cash flow is defined as operating cash flow - capital expenditures.
Slide 11: Installed Capacity
Note: 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. Installed Capacity
Slide 12: Capital Expenditures
P Capital Expenditures (in US milions) 4007 2007 TSMC 577 2,475 XinTec and GUC 16 47 3 TSMC Shanghai & WaferTech 7 31 42 Other TSMC Subsidiaries 1 4 2 TSMC Consolidated 611 2,557 2,457 CapEx /Sales Ratio 26.0% 25.2% * 2007 Capex was based on the weighted average exchange rate of NT$32.853 per US dol
Slide 13: 2007 Financial Highlights
2007 Financial Highlights Delivered 6th consecutive year of top line growth Profitability declined due to lower utilization and lower ASP Record amount of cash returned to shareholders Financial strength to support growth and shareholder return ROE > 20% for the 4th consecutive year
Slide 14: Cash Returned to Shareholders
2004 2007 Total Share buyback (US$B) 0.211 1.475 1.686 Share buyback (NT$M) 7060 48467 55527 Cash Returned to Shareholders Cumulative NT$253B (US$7.8B) Since 2004 Increasing Cash Dividend 1 2007 share buyback amount includes buybacks executed in 2007 but settled in 2008 (US$0.1B). Share Buybacks 200
Slide 15: 1Q08 Guidance
1Q08 Guidance Revenue is expected to be between NT$87 billion and NT$89 billion Gross profit margin is expected to be between 42% and 44%, including approximately 2.5ppt impact from the expensing of employee profit sharing Operating profit margin is expected to be between 32% and 34%, including appr
Slide 16: Recap of Recent Major Events
Recap of Recent Major Events TSMC Completes Share Buyback Plan (2007/12/31) TSMC Announces Multi-layer Mask Service (2007/12/27) TSMC Ships One-Millionth 12-Inch 90NM Wafer (2007/12/03) TSMC Unveils New 65-Nanometer Mixed-Signal and RF Tool Qualification Program (2007/12/13) TSMC and NXP Unveil Seve
Slide 17: http://www.tsmc.com invest@tsmc.com
http://www.tsmc.com invest@tsmc.com
Taiwan Semiconductor Manufacturing — Q4 2007 Earnings Presentation on 6ix