16 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Jan 31, 2008
Slide 1: 2007 Fourth Quarter Investor Conference
Proprietary TSMC 2007 Fourth Quarter Investor Conference January 31, 2008 © 2008 TSMC, Ltd
Slide 2: Agenda
Agenda Proprietary z Welcome Elizabeth Sun z 4Q07 Financial Results and 1Q08 Outlook Lora Ho z CEO Comments Rick Tsai z Q&A Rick Tsai / Lora Ho P. 2 © 2008 TSMC, Ltd
Slide 3: Safe Harbor Notice
Safe Harbor Notice Proprietary z 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. z Information as to those factors that could
Slide 4: 4Q07 Financial Highlights
4Q07 Financial Highlights Proprietary 4Q07 4Q07 QoQ YoY 4Q07 4Q07 Results 3Q07 Guidance4Q06 (In NT billions except otherwise noted) QoQ YoY (In NT billions except otherwise noted) Results Guidance Results Results Net Sales 93.86 92 - 94 5.5% 25.2% Net Sales 93.86 92 - 94 88.96 74.96 5.5% 25.2% Gross
Slide 5: 4Q07 Revenue by Applications
4Q07 Revenue by Applications Proprietary Memory 3% Industrial/Others 5% Consumer 15% Computer Communications 35% 42% Communications Computer Consumer 40.0 40.0 40.0 QoQ +5% QoQ +15% QoQ -7% 0.0 0.0 0.0 3Q07 4Q07 3Q07 4Q07 3Q07 4Q07 P. 5 © 2008 TSMC, Ltd
Slide 6: 4Q07 Revenue by Technology
4Q07 Revenue by Technology Proprietary 65nm revenue increased by more 0.25/0.35um than 17 folds in 4 quarters 0.5um+ 10.0% 10% 4% 65nm 10% Revenue (NT$B) % of Sales (%) 0.15/0.18um 27% 90nm 17X 29% 0.11/0.13um 20% Rev (NT$B) % of Sales P. 6 © 2008 TSMC, Ltd
Slide 7: Margin Expansion Driven by Cost Improvement and Operating Leverage
Margin Expansion Driven by Cost Proprietary Improvement and Operating Leverage (In NT billions except otherwise noted) 4Q07 3Q07 4Q06 Net Sales 93.9 89.0 75.0 Gross Margin 47.8% 45.8% 46.0% Operating Expenses (8.1) (8.4) (7.0) Operating Margin 39.2% 36.4% 36.6% Non-Operating Items 1.7 1.1 1.7 Long-T
Slide 8: Strong Balance Sheet Entering 2008
Strong Balance Sheet Entering 2008 Proprietary (In NT billions except otherwise noted) 4Q07 3Q07 4Q06 Cash & Marketable Securities 174.8 176.4 195.1 Accounts Receivable - Trade, net 42.4 42.4 31.6 Inventory, net 23.9 24.5 21.4 Fixed Assets, net 260.3 265.2 254.1 Total Assets 570.9 586.4 587.5 Total
Slide 9: Continued Strong Cash Flows
Continued Strong Cash Flows Proprietary (In NT billions except otherwise noted) 4Q07 3Q07 4Q06 Beginning Balance 98.3 163.4 92.9 Cash from operating activities 59.8 51.1 53.0 Capital expenditures (19.8) (24.9) (17.6) Cash dividends 0.0 (77.4) 0.0 Share buybacks (45.4) 0.0 0.0 Repayment of corporate
Slide 10: Installed Capacity
Installed Capacity Proprietary 1Q07 2Q07 3Q07 4Q07 2007 1Q08 FAB / (Wafer size) (A) (A) (A) (A) (A) (F) Fab-2 ( 6") 1 257 257 273 273 1,060 248 Fab-3 ( 8") 259 262 267 269 1,057 277 Fab-5 ( 8") 144 155 163 166 627 165 Fab-6 ( 8") 245 255 274 279 1,053 265 Fab-8 ( 8") 239 239 260 265 1,004 262 Fab-12
Slide 11: Capital Expenditures
Capital Expenditures Proprietary (In US millions) 4Q07 2007 2006 TSMC 577 2,475 2,410 XinTec and GUC 16 47 3 TSMC Shanghai & WaferTech 17 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
Slide 12: 2007 Financial Highlights
2007 Financial Highlights Proprietary (In NT billions except otherwise noted) 2007 2006 YoY z Delivered 6th consecutive year Net Sales 322.6 317.4 1.6% of top line growth Gross Margin 44.1% 49.1% -5 ppt z Profitability declined due to Operating Margin 34.6% 40.1% -5.5 ppt lower utilization and lower
Slide 13: Cash Returned to Shareholders
Cash Returned to Shareholders Proprietary Cumulative NT$253B (US$7.8B) Since 2004 Increasing Cash Dividend Share Buybacks 3.5 1.6 US$1.5B 3.0 1.4 NT$3.0 1.2 Cash Dividend per Share (NT$) 2.5 NT$2.5 1.0 2.0 NT$2.0 0.8 1.5 0.6 1.0 0.4 0.5 NT$0.6 0.2 US$0.2B 0.0 0.0 2004 2005 2006 2007 2004 2007 Year P
Slide 14: 1Q08 Guidance
1Q08 Guidance Proprietary 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%, in
Slide 15: Recap of Recent Major Events
Recap of Recent Major Events Proprietary 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
Slide 16: http://www.tsmc.com invest@tsmc.com
Proprietary http://www.tsmc.com invest@tsmc.com © 2008 TSMC, Ltd