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

Taiwan Semiconductor Manufacturing — Q1 2004 Earnings Presentation

30 slides from Taiwan Semiconductor Manufacturing's earnings presentation, May 3, 2004

  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 April 2004 Taiwan Semiconductor Manufacturing Company Ltd. (Translation of Reg

  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:April 30, 2004 By /s/ Lora Ho Lora Ho Vice Preside

  3. Slide 3: Taiwan Semiconductor Reports 17% Increase in Sequential EPS

    Taiwan Semiconductor Reports 17% Increase in Sequential EPS Hsin-Chu, Taiwan, R.O.C., April 30, 2004 — Taiwan Semiconductor Manufacturing Company, Ltd. said today that it expects 2004 will set new records for revenue and net income. Revenues from the first quarter ended March 31, 2004 reached NT$57.

  4. Slide 4: Profile and Safe Harbor Notice

    Profile TSMC (TAIEX: 2330, NYSE: TSM) is the world’s largest dedicated semiconductor foundry, providing the industry’s leading manufacturing capacity, process technology, library and IP options, and other leading-edge foundry services. TSMC currently operates one twelve-inch wafer fab, five eight-in

  5. Slide 5: Quarterly Management Report 1Q04

    FOR IMMEDIATE RELEASE 1Q04 Quarterly Management Report April 30, 2004 Operating Results Review: CONTACT IN TAIWAN Elizabeth Sun / Julie Chan / Eric Chiang Summary Investor Relations Division TSMC 1Q04 4Q03 1Q03 QoQ YoY invest@tsmc.com 886-3-568-2085/ 2080/ 2087 (Amount in NT$ Bn except noted otherwi

  6. Slide 6: I. Revenue Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. April 30, 2004 Page 2 I. Revenue Analysis I-1. Wafer Sales Analysis Revenue Analysis: By Application 1Q04 4Q03 1Q03 Net sales of NT$57.5 billion were 0.5% lower than the Computer 32% 35% 41% NT$57.8 billion recorded in 4Q03. The sequential change in T

  7. Slide 7: ASP Trend

    ASP Trend: Average selling price in U.S. dollars declined 3.2% sequentially, albeit at a slower rate than that of the previous quarter. The price erosion occurred as TSMC continued to honor previous commitments.

  8. Slide 8: II. Utilization & Capacity

    Taiwan Semiconductor Manufacturing Company, Ltd. April 30, 2004 Page 3 II. Utilization & Capacity Utilization Rate: Overall capacity utilization improved to 105% in the latest quarter from 101% in 4Q03. This increase reflected sequential business improvement experienced in the first quarter. II-2. C

  9. Slide 9: III. Profit & Expense Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. April 30, 2004 Page 4 III. Profit & Expense Analysis III - 1. Gross Profit Analysis Gross Profit Analysis: 1Q04 4Q03 1Q03 QoQ YoY Gross profit increased marginally to NT$22.7 billion. Despite an (Amount NT$ Billion) COGS 34.8 35.1 28.9 -1% 20% unfavor

  10. Slide 10: IV. Financial Condition Review

    Taiwan Semiconductor Manufacturing Company, Ltd. April 30, Page 5 2004 IV. Financial Condition Review IV - 1. Liquidity Analysis 1Q04 4Q03 1Q03 (Amount: NT$ Billion) Cash & S-T Investments 126.3 110.8 67.4 Liquidity Analysis: Accounts Receivable 27.2 25.8 17.6 Total current assets were NT$17.2 billi

  11. Slide 11: V. Cash Flow & CapEx

    Taiwan Semiconductor Manufacturing Company, Ltd April 30, 2004 Page 6 V. Cash Flow & CapEx Summary of Cash Flow: V-1. Cash Flow Analysis 1Q04 4Q03 1Q03 During 1Q04, TSMC generated NT$32.7 billion operating cash inflow mainly from net income and depreciation. (Amount in NT$ Billion) Net Income 18.8 1

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

    Taiwan Semiconductor Manufacturing Company, Ltd. April 30, 2004 Page 7 VI. Recap of Recent Important Events & Announcements · TSMC to Supply Products and Services for Future Microsoft Game Consoles (2004/04/06) · TSMC Board of Directors Approves Share Buyback Plan (2003/03/23) · Qualcomm and TSMC Co

  13. Slide 13: TSMC First Quarter 2004 Results Investor Conference

    TSMC P. 1 TSMC 2004IRFirst Apr.Quarter 2004 Results Investor Conference April 30th, 2004

  14. Slide 14: Agenda

    Lora HoIRD Welcome Agenda TSMC Morris 1Q’04 P. 2 Chang Apr-04, Financial Results (unconsolidated) Remarks Q&A z z z z

  15. Slide 15: Safe Harbor Notice

    Safe contained SEC with to TSMC update Harbor the onIRD October United zinzP. Notice the z 3 States Apr-04, forward-looking 21,TSMC’s 2003, Securities and statements such and statements. other Exchange ofdocuments itsInformation current Commission as expectations TSMC as to (the those may “SEC”) are

  16. Slide 16: 1Q'04 Result Highlights

    1Q’03 Amount 126.34 Annualized Amount:NT$Billion TSMC IRD 35.00ROE P.346.59 439.33 Apr-04, for *1,172 the 4.36 quarter. 0.21 105% 67.45 22.2% 35.00 Net299.88 Sales Net 694Income 69% 5.9% EPS4Q’03 (NT$)Amount Cash and 57.78 S-T 16.00 Investment 0.79 110.85 Interest-bearing 35.00 329.21 Debt1,127 Shar

  17. Slide 17: QoQ Comparison Income Statement

    0%100.0% QOQ % Comparison QoQ 1Q’04 100.0% Amount NT$Billion Income TSMC-1% %57.51 IRD Statement before 100.0% -55.8% 0% %-60.7% Net Apr-04, -15% 4Q’03 (34.78) Tax 44.2% Sales -60.5% -5% 39.3% Income 57.78 TSMC 22.73 COGS 148% 4Q’03 39.5% -10.5% (35.07) (5.19) Tax w/o -29% Gross 50.6 -9.0% Affiliate

  18. Slide 18: Income Tax Analysis

    4Q’03 1Q’04 •Income Amount:NT$Billion Credit/(Expense) TSMC • The 18.44 17.57 IRD Provisional Tax Analysis P.0.80 1.14 6 Apr-04, Provisional 16.43 17.63 Tax Income * 2004 Rate (3.17) (2.31) is Provisional before Tax 1.60 2.67 calculated Rate Tax (1.57) 0.35 *Investment Tax 13% by 19% dividing Rate i

  19. Slide 19: YoY Comparison Income Statement

    46% YOY % Comparison YoY 1Q’04 100.0% Amount NT$Billion Income TSMC 100.0% % 20% 57.51 IRD 100.0% Statement before -71.2% % 119% -73.6% Net Apr-04, 1Q’03 (34.78) Tax -60.5% 28.8% Sales 24% -26.4% Income 39.33 TSMC 22.73 183% COGS 1Q’03 39.5% -10.7% (28.94) (5.19) Tax w/o 118% Gross 35.1 -9.0% Affili

  20. Slide 20: Balance Sheet and Selected Key Indices

    19% 1Q’03 28% 4Q’03 30% % 1Q’04 B * Amount:NT$Billion Turnover TSMC alance 100% 5% 7% 6% Amount 40 42 IRD Sheet 3% Days 36P.42% 37 28% 40% 5.2 4.6 8&Current 363.3 Apr-04, Amount Key 6%Selected 8% 9% 67.4 Indices 10% 8% 7%Ratio 396.4 421.0 83% 82% 17.6 83%*Items Inventory 10.2from 110.8 126.3103.0 25

  21. Slide 21: Cash Flows

    1Q’03 18.8 Expenditure—S-T TSMC 15.1 Amount IRD(1.2) P. 9(23.9) 20.1 Apr-04, Investment—L-T 4.4 (16.4) 15.4(7.3) 0.4 (10.3) (0.2) Investment—Other (0.1) (9.1) (0.6) 0.0 (1.0) 0.0 (0.5) (0.3) Investing (0.1) (4.0) Amount:NT$Billion (4.0) Sources/(Uses) 0.0 (0.0) 4Q’03 From From Amount Financing—L-T O

  22. Slide 22: TSMC Sales Breakdown by Technology

    0.13u- 18 0.15u 19 0.18u 0.35u 0.25u Sales TSMC 17 Breakdown 20 28 27 17 20 IRD 20 19 21 17P. 10 8 24 27710 73Q03 20 18 4Q03 Apr-04, by 911 9Technology 2Q03 7 1Q04 0.50u+ 100% 11 21 75%21 50% 24 1225% 11 1Q03 0%

  23. Slide 23: TSMC Sales Breakdown by Application

    Others 4 Memory Consumer Sales 100% TSMC 2 17Breakdown 75% 45 42 IRD32 35 52 50% P.4Q03 1Q04 21 1125% 36 Apr-04, by36 Application 0% 3Q03 Comm.Computer 52 16 34 62 43 13 2Q03 38 41 1Q03

  24. Slide 24: TSMC Sales Breakdown by Geography

    6 457 12 Japan 8 Europe 7 Asia Sales US 100% TSMC 13Breakdown 11 75% 76 74 75 77 IRD 3Q03 1Q04 4Q03 2Q03 50% P. 1225% Apr-04, by Geography 0% Note: 6 5 13 76 1Q03 This chart does not reflect the actual shipment destination of sales.

  25. Slide 25: TSMC Sales Breakdown by Customer Type

    1 29 0 System IDM 26 Sales 100% TSMC 307371 69 1Breakdown 3Q03 75% IRD 1Q04 4Q03 50% P. Fabless 1325% Apr-04, by1Customer 0% 26 73 2Q03 0 32 68 1Q03

  26. Slide 26: Utilization and ASP Trend

    100 Out (%) 98 ASP 69 66 84 (RHS) 88 (“Fab Blended Apr-04, 2,000 US$) 3Q03 2Q03 1Q03 4Q02 3Q02 2Q02 50 01,000 Utilization ASP Utilization /08and 105 TSMC ASP 1Q04IRD Trend 101P.4Q03 Equiv. 14 (LHS) wafer 70 1Q02

  27. Slide 27: TSMC Installed Capacity

    2Q04 1Q04 Fab 4Q03 Installed 1 2 FAB TSMC Figures Fab-2 (e) 217 227 IRDCapacity 228 represent 208 213 Fab-3 P.221 15 106Apr-04, 112 Fab-5 116 by 183 187 number Wafer 192 35 51 Fab-6 189 182 35 of Size 202 6” 40 Fab-7 436” Figures 949 953 508”Fab-8 1,004 89 88 8”29 30 represent 8”88 Fab-12 1,067 1,07

  28. Slide 28: Recap of Recent Major Events and Announcements

    Major (2004/02/17) •Board and nm Game IRD TSMC Adopts for for Consoles Buyback NT$1.4 Products Apr-04, BoardWireless 90nm announcements. Cash Director on Celebrates Stock NT$2.0 TSMC 90Events Low-k TSMC’s and Directors Process Services TSMC Two0.13-micron Share Technology (2004/04/06) Technology oth

  29. Slide 29: 2Q04 Guidance

    2Q04 Wafer strongly P. 18 TSMC Guidance shipments in the IRConsumer Apr. Gross to increase 2004 profit segment, by margin close modestly will to 10 jump percent for a few Communication sequentially points Revenues ASP segment, tofrom improve but advanced decline by a low technologies modestly single

  30. Slide 30: tsmc.com and invest@tsmc.com

    http://www.tsmc.com P. 19 TSMC IR Apr. 2004 invest@tsmc.com

Taiwan Semiconductor Manufacturing — Q1 2004 Earnings Presentation on 6ix