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

Taiwan Semiconductor Manufacturing — Q3 2003 Earnings Presentation

36 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Oct 29, 2003

  1. Slide 1: Form 6-K Report of Foreign Private Issuer

    1934 Act Registration No. 1-14700 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2003 Taiwan Semiconductor Manufacturing Company Ltd. (Translation of R

  2. Slide 2: Signatures

    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 Company Ltd. Date: October 28, 2003 By /s/ Lora Ho Lora Ho Vice Pres

  3. Slide 3: Taiwan Semiconductor Reports 29% Increase in Sequential EPS Driven by 10% Higher Revenue

    Taiwan Semiconductor Reports 29% Increase in Sequential EPS Driven by 10% Higher Revenue Hsin-Chu, Taiwan, R.O.C., October 28, 2003 — Taiwan Semiconductor Manufacturing Company, Ltd. today announced revenues of NT$54.877 billion, net income of NT$15.169 billion and fully diluted earnings per share o

  4. Slide 4: Conference Call & Webcast Notice

    Conference Call & Webcast Notice: TSMC’s quarterly review conference call will be held at 8 A.M. Eastern Time (9 P.M. Taiwan Time) on Thursday, October 28, 2003. The conference call will also be webcasted live on the Internet. Investors wishing to access the live webcast should visit TSMC’s web site

  5. Slide 5: 3Q03 Quarterly Management Report

    FOR IMMEDIATE RELEASE 3Q03 Quarterly Management Report October 28, 2003 CONTACT IN TAIWAN Julie Chan / Eric Chiang / Elizabeth Sun Investor Relations Division TSMC invest@tsmc.com 886-3-568-2080/ 2087/ 2085 Topics in This Report • Revenue Analysis • Utilization & Capacity • Profit & Expense Analysis

  6. Slide 6: Revenue Analysis: Wafer Sales

    Taiwan Semiconductor Manufacturing Company, Ltd. October 28, 2003 Page 2 I. Revenue Analysis: I-1. Wafer Sales Analysis By Application 3Q03 2Q03 3Q02 Computer 36% 43% 36% Communication 36% 34% 34% Consumer 21% 16% 22% Industrial/Others 5% 5% 5% Memory 2% 2% 3% By Technology 3Q03 2Q03 3Q02 0.13um- 19

  7. Slide 7: Net Sales Revenue Analysis

    Net sales of NT$54.9 billion was 10% higher than the NT$49.9 billion recorded in 2Q03. The growth in TSMC wafer sales was attributable to 12% higher wafer shipments, a flat average selling price in U.S. dollar terms, and was offset partially by a stronger NT dollars. Consumer and Communication appli

  8. Slide 8: Utilization & Capacity

    Taiwan Semiconductor Manufacturing Company, Ltd. October 28, 2003 Page 3 II. Utilization & Capacity Utilization Rate: Overall capacity utilization improved to 98% in the latest quarter from 88% in the second quarter. This increase reflected the sequential business improvement experienced in the thir

  9. Slide 9: Profit & Expense Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. October 28, 2003 Page 4 III. Profit & Expense Analysis III - 1. Gross Profit Analysis 3Q03 2Q03 3Q02 QoQ YoY (Amount: NT$ Bn) COGS 33.4 31.6 27.0 6% 24% Depreciation 14.0 14.0 13.3 0% 8% Other MFG Cost 19.4 17.6 13.7 10% 19% Gross Profit 21.4 18.4 12.

  10. Slide 10: Financial Condition Review

    Taiwan Semiconductor Manufacturing Company, Ltd. October 28, 2003 Page 7 IV. Financial Condition Review IV – 1. Liquidity Analysis 3Q03 2Q03 3Q02 (Amount: NT$ Bn) Cash & S-T Investments 94.4 69.6 64.5 Accounts Receivable 25.0 25.0 17.9 Inventory 11.8 11.4 13.3 Total Current Assets 135.2 111.0 100.4

  11. Slide 11: Cash Flow & Capex

    Taiwan Semiconductor Manufacturing Company, Ltd. Page 6 October 28, 2003 V. Cash Flow & Capex V – 1. Cash Flow Analysis 3Q03 2Q03 3Q02 (Amount: NT$ Bn) Net Income 15.2 11.7 3.2 Deprec. & Amort. 15.5 15.5 14.6 Other Op Sources/(Uses) 3.3 (4.1) 6.8 Total Op Sources/(Uses) 33.9 23.1 24.6 Net Investing

  12. Slide 12: Recap of Recent Important Events & Announcements

    Taiwan Semiconductor Manufacturing Company, Ltd. October 28, 2003 Page 7 VI. Recap of Recent Important Events & Announcements • TSMC Board Approved TSMC’s Sponsorship of Secondary Offering of Up to 100 Million ADSs by Philips (10/08) • TSMC Held its Topping Ceremony for Its Wholly Owned Fab in Shang

  13. Slide 13: Attachment A: Unconsolidated Balance Sheet

    Attachment A TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED BALANCE SHEET As of September 30, 2003 and 2002 (Figures in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1) Sep. 30, 2003 Sep. 30, 2002 YoY ASSETS USD NTD % NTD % Move Inc(Dec)% Cash 2,449 82,731 21.6 64,516 17.

  14. Slide 14: Note on currency translation

    Note: (1) New Taiwan dollar amounts have been translated into U.S. dollars at the rate of NT$33.78 per U.S. dollar as of September 30, 2003.

  15. Slide 15: Attachment B: Unconsolidated Income Statement

    Attachment B TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED INCOME STATEMENT For the three Months Ended September 30, 2003 and 2002 and June 30, 2003 (Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD)(1) Except for Per Share Amounts and Shares Outstanding) Year over

  16. Slide 16: Attachment C: Nine Months Income Statement

    Attachment C TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED INCOME STATEMENT For the Nine Months Ended September 30, 2003 and 2002 (Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD)(1) Except for Per Share Amounts and Shares Outstanding) 9 months ended Sep. 30 2003 2

  17. Slide 17: Attachment D: Statement of Cash Flows

    Attachment D TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2003 and 2002 (Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1) 9 MTHS 2003 9 MTHS 2002 USD NTD NTD Cash Flows from Operating Activities:

  18. Slide 18: TSMC 2003 Third Quarter Results Investor Conference

    TSMC 2003 Third Quarter Results Investor Conference October 28th, 2003

  19. Slide 19: Agenda

    Agenda Welcome 3Q’03 Financial Results Lora Ho (unconsolidated) Remarks Morris Chang Q&A

  20. Slide 20: 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

  21. Slide 21: 3Q 2003 Result Highlights

    3Q 2003 Result Highlights 3Q'03 2Q'03 3Q'02 Amount:NT$Billion Amount Amount Amount Net Sales 54.88 49.92 39.84 Net Income 15.17 11.73 3.16 EPS (NT$) 0.75 0.58 0.15 Cash and S-T Investment 94.40 69.60 64.52 Interest-bearing Debt 35.00 35.00 44.00 Shareholders' Equity 312.97 298.26 293.61 Wafers Shipp

  22. Slide 22: 3Q03 Income Statement - QoQ Comparison

    3Q03 Income Statement - QoQ Comparison TSMC w/o Affiliates NT$Billion 3Q'03 2Q'03 Net Sales 49.1 100% 43.9 100% COGS (28.0) -57% (25.9) -59% Gross Profit 21.1 43% 18.1 41% 3Q'03 2Q'03 QOQ Amount:NT$Billion Amount % Amount % % Net Sales 54.88 100% 49.92 100% 10% COGS (33.43) -61% (31.57) -63% 6% Gros

  23. Slide 23: 3Q03 Income Statement - YoY Comparison

    3Q03 Income Statement - YoY Comparison TSMC w/o Affiliates NT$Billion 3Q'03 3Q'02 Net Sales 49.1 100% 36.0 100% COGS (28.0) -57% (23.3) -65% Gross Profit 21.1 43% 12.6 35% 3Q'03 3Q'02 YOY Amount:NT$Billion Amount % Amount % % Net Sales 54.88 100% 39.84 100% 38% COGS (33.43) -61% (27.00) -68% 24% Gro

  24. Slide 24: Balance Sheet & Key Ratios

    Balance Sheet & Key Ratios Amount:NT$Billion 3Q'03 2Q'03 3Q'02 Balance Sheet Amount % Amount % Amount % Cash & S-T Investment 94.4 25% 69.6 19% 64.5 17% Accounts Receivable 25.0 7% 25.0 7% 17.9 5% Inventory 11.8 3% 11.4 3% 13.3 4% Current Asset 135.2 35% 111.0 31% 100.4 27% Current Liability 27.2 7%

  25. Slide 25: Cash Flow

    Cash Flow 3Q'03 2Q'03 3Q'02 Amount:NT$Billion Amount Amount Amount From Operation 33.9 23.1 24.6 - - Net Profit 15.2 11.7 3.2 - Depreciation & Amort. 15.5 15.5 14.7 From Investment (17.4) (10.4) (21.4) - Capital Expenditure (8.2) (7.2) (19.6) - S-T Investment (8.6) (3.1) 0.0 From Financing (0.4) (13

  26. Slide 26: Sales Breakdown by Technology

    Sales Breakdown by Technology 100% 5 8 11 17 19 0.13u- 20 24 21 0.15u 75% 21 20 23 0.18u 21 21 50% 24 27 0.25u 27 25 24 0.35u 20 25% 19 13 12 11 0.50u+ 9 8 12 11 11 9 7 0% 3Q02 4Q02 1Q03 2Q03 3Q03

  27. Slide 27: Sales Breakdown by Application

    Sales Breakdown by Application Computer Comm. Consumer Memory Others 100% 5 5 6 5 5 3 3 2 2 2 13 16 18 21 22 75% 38 34 35 34 36 50% 25% 41 43 36 39 36 0% 3Q02 4Q02 1Q03 2Q03 3Q03

  28. Slide 28: Sales Breakdown by Geography

    Sales Breakdown by Geography US Asia Europe Japan 100% 6 5 6 7 8 5 5 5 4 5 13 14 13 12 11 75% 50% 76 76 76 77 76 25% 0% 3Q02 4Q02 1Q03 2Q03 3Q03 Note: This chart does not reflect the actual shipment destination of sales.

  29. Slide 29: Sales Breakdown by Customer

    Sales Breakdown by Customer Fabless IDM System 1 1 0 1 1 100% 32 26 26 35 31 75% 50% 73 73 64 68 68 25% 0% 3Q02 4Q02 1Q03 2Q03 3Q03

  30. Slide 30: Fab Utilization and ASP Trend

    Fab Utilization and ASP Trend ASP/8” Equiv.* Out Utilization** (US$) (%) 2,000 98 100 88 88 84 70 69 66 1,000 50 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 Utilization (RHS) ASP (LHS) * Average for all wafers; ASP varies by technology and wafer size. ** Starting 1Q03 calculation of utilization rate excl

  31. Slide 31: Installed Capacity by Fab

    Installed Capacity by Fab FAB Wafer Size 1Q03 2Q03 3Q03 4Q03(est.) Total(est.) Fab-2 * 6" 206 216 223 227 872 Fab-3 8" 193 202 203 213 810 Fab-5 8" 106 106 111 112 436 Fab-6 8" 154 170 172 183 679 Fab-7 8" 65 58 44 35 201 Fab-8 8" 161 170 178 189 697 Fab-12 ** 12" 17 22 28 40 108 TSMC-owned 834 877

  32. Slide 32: Capital Expenditure

    Capital Expenditure 1Q03 2Q03 3Q03 Year-to-date CapEx (NT$Bn) 9.1 7.2 8.2 24.4 * CapEx (US$M) 262 207 238 706 * US$ amount conversion is set at the rate of NT$34.56 per US$

  33. Slide 33: Recap of Recent Major Events

    Recap of Recent Major Events TSMC Board Approved TSMC’s Sponsorship of Secondary Offering of up to 100 Million ADSs by Philips (10/08) TSMC Held Its Topping Ceremony for Its Fab in Shanghai, China (09/22) TSMC Board Approved The Compensation Committee Charter to Further Strengthen Company’s Corporat

  34. Slide 34: http://www.tsmc.com invest@tsmc.com

    http://www.tsmc.com invest@tsmc.com

  35. Slide 35: 4Q03 Guidance

    4Q03 Guidance Wafer shipments to grow by a mid to high single digit percentage point on a sequential basis ASP to decline slightly Revenues from advanced technologies to remain at about two- thirds of total wafer sales Overall utilization rate to be about 95 percent Demand to improve in the communic

  36. Slide 36: http://www.tsmc.com invest@tsmc.com

    http://www.tsmc.com invest@tsmc.com

Taiwan Semiconductor Manufacturing — Q3 2003 Earnings Presentation on 6ix