Taiwan Semiconductor Manufacturing Co., Ltd. · TWSE:2330
Taiwan Semiconductor Manufacturing — Q4 2008 Earnings Presentation
16 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Jan 23, 2009
Slide 1: Operating and Free Cash Flows; CapEx & Capacity
Operating and Free Cash Flows: Cash flows generated from operating activities were NT$63.2 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$52.0 billion in 4Q08, compared to NT$45.5 billion in 3Q08. Total free cash flow g
Slide 2: TSMC 2008 Fourth Quarter Investor Conference
TSMC 2008 Fourth Quarter Investor Conference January 22, 2009
Slide 3: Agenda
Agenda Welcome Elizabeth Sun 4Q08 Financial Results and 1Q09 Outlook Lora Ho CEO Comments Rick Tsai Q&A Rick Tsai / Lora Ho
Slide 4: Safe Harbor Notice
Safe Harbor Notice TSMC’s statements of its current expectations are forward- looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. Information as to those factors that could cause actual res
Slide 5: 4Q08 Financial Highlights
4Q08 Financial Highlights (In NT billions except otherwise noted) Guidance Net Sales 93.86 92 — 94 5.5% 25.2% Gross Margin 47.8% 46% — 48% +2 ppt +1.8 ppt Operating Margin 39.2% 37% — 39% +2.8 ppt +2.6 ppt EPS — Diluted (NT$)1.31 14.3% 24.3% Free Cash Flow 39.98 51.9% 12.9% ROE (%) (1) 27.9% +2.9 pp
Slide 6: Income Statements
Income Statements (1) 4Q07 results do not include expensing of employee profit sharing. (In NT billions except otherwise noted) 4Q08 3Q08 4Q07(1) QoQ YoY Net Sales 64.56 92.98 93.86 - -30.6% -31.2% Gross Margin 31.3% 46.3% 47.8% -15.0 ppt -16.5 ppt Operating Expenses (8.17) (10.18) (8.08) -19.7% 1.2
Slide 7: 4Q08 Revenue by Applications
4Q08 Revenue by Applications 0.0 40.0 3Q08 4Q08 Revenue (NT$B) Communications 43% Consumer 19% Computer 32% Industrial/Others 6% QoQ -32% 0.0 40.0 3Q08 4Q08 Revenue (NT$B) QoQ -34% 0.040.03Q08 4Q08 Revenue (NT$B) QoQ -39% Computer Communications Consumer 0.0 40.0 3Q08 4Q08 Revenue (NT$B) Communicati
Slide 8: 4Q08 Revenue by Technology
4Q08 Revenue by Technology 0.11/0.13um 17% 0.15/0.18um 22% 90nm 21% 0.5um+ 3% 0.25/0.35um 10% 65nm 27% 0 5 10 15 20 25 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Revenue (NT$B) 0% 5% 10% 15% 20% 25% 30% % of Sales (%) Rev (NT$B) % of Sales 65nm Revenue 0.11/0.13um 17% 0.15/0.18um 22% 90nm 21% 0.5um+ 3%
Slide 9: Balance Sheets & Key Indices
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 211.45 37.8% 158.17 28.7% 174.83 30.6% Accounts Receivable — Tra
Slide 10: Cash Flows
Cash Flows (1) Free cash flow = Operating cash flow — Capital expenditures. (In NT billions except otherwise noted) 4Q08 3Q08 4Q07 Beginning Balance 112.45 185.35 98.33 Cash from operating activities 63.24 55.90 59.76 Capital expenditures (11.26) (10.38) (19.78) Cash dividends 0.00 (76.78) 0.00 Shar
Slide 11: Installed Capacity
Installed Capacity 2008 Overall Capacity +13%; Advanced Capacity +27% (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 t
Slide 12: Capital Expenditures
Capital Expenditures (In US millions) 4Q08 2008 2007 TSMC 326 1,807 2,475 XinTec and GUC 2 23 47 TSMC Shanghai & WaferTech 12 52 31 Other TSMC Subsidiaries 2 4 4 TSMC Consolidated 342 1,886 2,557 Note: 2008 CapEx was based on the weighted average exchange rate of NT$31.406 per US dollar.
Slide 13: Cash Returned to Shareholders
Cash Returned to Shareholders Cumulative NT$361B (US$11.2B) Since 2004 US$0.2B US$1.5B US$1.0B 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2004 2007 2008 Increasing Cash Dividend Increasing Cash Dividend Share Buybacks Share Buybacks NT$3.0 NT$0.6 NT$2.0 NT$2.5 NT$3.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2004 20
Slide 14: 1Q09 Guidance
1Q09 Guidance Revenue is expected to be between NT$32 billion and NT$35 billion, at a forecast exchange rate of 32.66 NT dollars to 1 US dollar averaged over 1Q09. Gross profit margin is expected to be between 1% and 5%. Operating profit margin is expected to be between -19% and -15%.
Slide 15: Recap of Recent Major Events
Recap of Recent Major Events TSMC Wins the Award of “Grand Prix for Best Overall Investor Relations at a Taiwanese Company — Large-Cap” by IR Magazine (2008/12/11) TSMC Chairman Dr. Morris Chang Receives Semiconductor Industry Association’s Highest Honor “The 2008 Robert N. Noyce Award” (2008/11/18)
Slide 16: http://www.tsmc.com invest@tsmc.com
http://www.tsmc.com invest@tsmc.com
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