Taiwan Semiconductor Manufacturing Co., Ltd. · TWSE:2330

Taiwan Semiconductor Manufacturing — Q3 2010 Earnings Presentation

16 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Oct 29, 2010

  1. Slide 1: Operating and Free Cash Flows; CapEx & Capacity

    Operating and Free Cash Flows: Free cash flow, defined as the excess of operating cash flows over capital expenditures, was NT$21.80 billion in 3Q10, compared to negative NT$3.79 billion in 2Q10 and NT$14.62 billion in 3Q09. V. CapEx & Capacity V-1. Capital Expenditures (In US millions) 1Q10 2Q10 3Q

  2. Slide 2: TSMC 2010 Third Quarter Investor Conference

    TSMC Property TSMC 2010 Third Quarter Investor Conference October 28, 2010 © 2010 TSMC, Ltd

  3. Slide 3: Agenda

    Agenda Welcome 3Q10 Financial Results and 4Q10 Outlook ??CEO Comments ??Q&A Elizabeth Sun Lora Ho Morris Chang Morris Chang / Lora Ho © 2010 TSMC, Ltd

  4. Slide 4: Safe Harbor Notice

    TSMC Property TSMC Property 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

  5. Slide 5: 3Q10 Financial Highlights

    3Q10 Financial Highlights TSMC Property 3Q104Q072Q104Q07 3Q09 3Q10 QoQ QoQ YoYYoY (In(InNTNTbillionsbillionsexceptexceptotherwiseotherwisenoted) noted) GuidanceResults ActualGuidanceActual Net NetSales Sales112.25109 93.86 — 111 104.96 92 — 94 89.94 5.5% 6.9% 25.2% 24.8% Gross Margin50.0%48% — 50% 4

  6. Slide 6: Income Statements

    Income Statements TSMC Property (In NT billions except otherwise noted) 3Q10 2Q10 3Q09 QoQ YoY Net Sales112.25 104.96 89.94 6.9% 24.8% Gross Margin 50.0% 49.5% 47.7% +0.5 ppt +2.3 ppts Operating Expenses (13.06) (11.46) (10.87) 14.0% 20.1% Operating Margin 38.4% 38.6% 35.6% -0.2 ppt +2.8 ppts Non-Op

  7. Slide 7: 3Q10 Revenue by Applications

    3Q10 Revenue by Applications TSMC Property Industrial/Others Consumer 17% Computer 14% 25% Communications 44% Communications Computer Consumer 50.0 QoQ +13% 50.0 50.0 B) B) $ $ B) (NT $ (NT (NT QoQ -7% Revenue Revenue Revenue QoQ +4% 0.0 0.0 0.0 2Q10 3Q10 2Q10 3Q10 2Q10 3Q10 © 2010 TSMC, Ltd

  8. Slide 8: 3Q10 Revenue by Technology

    3Q10 Revenue by Technology TSMC Property 0.25/0.35um 0.5um+ 8% 3% 65nm/40nm Revenue 50 50% 45 40 40% 35 B) % $30 30% of (NT 25 Sales Revenue 20 20% (%) 15 10 10% 5 0 0% 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 65nm 40nm Rev Rev (NT (NT$ $B) B) 40/65nm combined as % of Sales 0.15/0.18um 40nm 17% 17% 0.11/0.13um

  9. Slide 9: Balance Sheets & Key Indices

    Balance Sheets & Key Indices TSMC Property Selected Items from Balance Sheets 3Q10 2Q10 3Q09 (In NT billions excepted otherwise noted) Amount % Amount % Amount % Cash & Marketable Securities 167.21 25.0% 206.54 30.3% 180.32 33.3% Accounts Receivable — Trade 47.38 7.1% 48.06 7.1% 35.88 6.6% Inventory

  10. Slide 10: Cash Flows

    Cash Flows TSMC Property (In NT billions except otherwise noted) 3Q10 2Q10 3Q09 Beginning Balance 172.49 159.80 239.52 Cash from operating activities 63.95 48.93 46.66 Capital expenditures (42.15) (52.72) (32.04) Cash dividends (77.71) 0.00 (76.88) Proceeds from short-term loans 19.83 17.76 0.00 Inv

  11. Slide 11: Installed Capacity 2010 Overall Capacity +14%; Advanced Capacity +37%

    Installed Capacity 2010 Overall Capacity +14%; Advanced Capacity +37% TSMC Property | | | | | | 2009 1Q10 2Q10 3Q10 4Q10 2010 FAB / (Wafer size)(A) (A) (A) (A) (F) (F) Fab-2(6”) (1) 1,121 254 236 255 255 1,000 Fab-3(8”) 1,150 267 282 300 300 1,149 Fab-5(8”) 599 139 144 141 141 564 Fab-6(8”) 1,154 26

  12. Slide 12: Capital Expenditures

    Capital Expenditures TSMC Property (In US millions) 1Q10 2Q10 3Q10 YTD TSMC1,433 1,645 1,275 4,353 XinTec and GUC 2 4 10 16 TSMC China & WaferTech 8 7 34 49 Other TSMC Subsidiaries 1 1 0 2 TSMC Consolidated 1,444 1,657 1,319 4,420 Note: 2010 CapEx was based on the weighted average exchange rate of N

  13. Slide 13: 4Q10 Guidance

    4Q10 Guidance Revenue to be between NT$107 billion and NT$109 billion, at a forecast exchange rate of 30.60 NT dollars to 1 US dollar Gross profit margin to be between 48% and 50% Operating profit margin to be between 35.5% and 37.5% TSMC Property © 2010 TSMC, Ltd

  14. Slide 14: Recap of Recent Major Events

    Recap of Recent Major Events TSMC Begins Building Solar R&D Center and Fab in Central Taiwan ( 2010/09/16 ) TSMC Was Named the Semiconductor Sector Leader in 2010 Dow Jones Sustainability Index (DJSI) Survey and Included as Index Component for the 10th Consecutive Year ( 2010/09/09 ) ARM and TSMC Si

  15. Slide 15: CEO Message

    CEO Message I. 3Q, 4Q and Year 2010 II. Supply Chain Inventory and 2011 Outlook III. Mission and Strategy IV. New Technologies V. New Businesses (LED and Solar)

  16. Slide 16: Contact

    http://www.tsmc.com invest@tsmc.com TSMC Property © 2010 TSMC, Ltd SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Taiwan Semiconductor Manufacturing C

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