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

Taiwan Semiconductor Manufacturing — Q4 2002 Earnings Presentation

21 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Jan 29, 2003

  1. Slide 1: 2002 Fourth Quarter Results Investor Conference

    TSMC 2002 Fourth Quarter Results Investor Conference January 28th, 2003

  2. Slide 2: Agenda

    tsmc Agenda @ Welcome @ 4Q’02 Financial Results Harvey Chang (unconsolidated) @ Remarks Morris Chang @ Q&A Morris Chang et. al. Empowering Innovation

  3. Slide 3: Safe Harbor Notice

    tine 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 any forward- looking statement. @ Information as to those factors that could cause ac

  4. Slide 4: 2002 Income Statement

    rare Net Sales cocs Gross Profit Operating Expense Operating Income Non-operating Income (Exp.) Investment Income (Loss) Income before Tax Income Tax Credit Exp.) Net Income EPS (NTS) 2002 Income Statement 102 2Q'02 3Q'02 4Q'02 2002 Amount —% Amount _% Amount —% = Amount —% Amount —% 3579 1004 HAAS

  5. Slide 5: 2002 Income Statement - Yearly Comparison

    2002 Income Statement - Yearly Comparison TSMC wio Affiliates NisBiion 202 201 NetSales “439 100% “Iida 100% coss S20) 54% BH) 69% Gross Margin 51.1 35% 351 31% 2002 2001 “Amount NTSEiion Amount % Amount % Net Sales 160.96 100% 125.89 100% cocs (108.99) 68% (89.51) 71% Gross Profit 51.97 32% 36.38 2

  6. Slide 6: 4Q 2002 Result Highlights

    ee 4Q 2002 Result Highlights 4Q'02 3q0z 4qot Amount: NTSBillion Amount Amount Amount Net Sales 41.15 39.84 33.13 Net Income 2.55 3.16 451 EPS (NT$) 0.13 0.16 0.24 Cash and Equivalent 61.66 64.52 33.40 Debt 39.00 44.00 29.00 Shareholders’ Equity 295.85 293.61 277.19 Wafers Shipped (Kpcs) 682 677 558

  7. Slide 7: 4Q 2002 Income Statement - YoY Comparison

    4Q 2002 Income Statement - YoY Comparison TSMC wio Affiliates NTSBilion anu a0 NetSaks Gd 100% 908 100% coss ee) 72% (ae) 84% Gross Margin 105 28% 110 36% 4Q'02 4Q'01 YoY “Amount N TSBilion Amount % Amount % % Net Sales 41.15 100% 33.13 100% 24% cocs 0.47) 748% @2.04) e1% 38% Gross Profit 10.68 25%

  8. Slide 8: 4Q 2002 Balance Sheet & Cash Flow - YoY Comparison

    tsinie 4Q 2002 Balance Sheet & Cash Flow - YoY Comparison 4Qo02 4Q01 YOY Ammount:NTSBilion Amount % Amount % % Cash 617 Th = 8410 85% LT Debt 35.0 % 240 Th 46% Equity 295.9 om «2772 Bh Th Total Assets 370.0 10m 95.7 100% 10% Depreciation & Amort. 164 124 23% Capital Expenditure 179 10.0 73% ROE 75%

  9. Slide 9: 4Q 2002 Income Statement - QoQ Comparison

    4Q 2002 Income Statement - QoQ Comparison TSMC wio Affiliates TTS a0 SOT NetSeles "368 100% 360 100% cocs 84) 778 _@33) 65% GrossMargin 105 28% 126 35% 4Q'02 3Q'02 QoQq “AmounkNT Bion Amount % Amount % % Net Sales 41.45 100% 39.84 100% 3% cocs (30.47) __ za 27.00) __-sa% 13% Gross Profit 10.68 26% 1

  10. Slide 10: Inventory Status Analysis

    Inventory Status Analysis Amount:NTSBillion Inventory Raw Material WIP Finish Goods 4Q'02 3Q'02 2Q'02 Amount % Amount % Amount % 10.3 100% 13.3 100% 7 100% 1.0 10% 44 8% 44 9% 75 73% 87 65% 96 82% 18 17% 35 26% 1.0 9% Empowering Innovation

  11. Slide 11: 4Q 2002 Balance Sheet & Cash Flow - QoQ Comparison

    tsinie 4Q 2002 Balance Sheet & Cash Flow - QoQ Comparison 4Q'02 3Q'02 Q0Q Amount:NT Billion Amount __% Amount —_% % Cash 617 1m AS TH 4% LT Debt 35.0 % = 350 o% 0% Inventory 103 m% 133 + 23% Equity 295.9 om 29368 0h % Total Assets 370.0 = 100% 377.4 100% 2% Depreciation & Amort. 16.41 “7 9% Capital

  12. Slide 12: Sales Breakdown by Technology

    tsmc Sales Breakdown by Technology 100% w0.13u- 75%) 0.15u m0.18u Bs . 50% [ | 00.25u RE m0.35u 25% I i iF [ m0.50u+ (8 ['s 1 ha ry ha 2 1 0% : 1001 2601 3001 4001 1002 2002 3a02 4c02 pues 395 263 «269 «331 «358 4429-8412 (NTSBn) Empowering Innovation

  13. Slide 13: Sales Breakdown by Application

    tsmic Sales Breakdown by Application Computer mComm. Consumer GMemory Others 100%, 50%; 25% 0%! Sales (NTSBn) 1Q01 2Q01 3Q01 4901 1Q02 2002 3Q02 4Q02 395 263 269 331 36.8 44.2 398 641.2 Empowering Innovation

  14. Slide 14: Sales Breakdown by Geography

    tsinie Sales Breakdown by Geography ous aAsia Europe Cvapan 100% | r 6 tg e 758 sot loo ire 9 6 bs 69 co | —_les 25% 0% ro ant dQtquz 20202 ago Sales 395 263 26.9 33.1 36.8 44.2 39.8 412 (NTSBn) Note: This chart does not elect the actual shipment destination of sales. Empowering Innovation

  15. Slide 15: Sales Breakdown by Customer

    ae 50% 25% 0%! Sales (NTSBn) Sales Breakdown by Customer OFabless BIDM System 1Q01 2Q01 3001 4Q01 1Q02 2Q02 3Q02 4Q02 395 8626.3 26.9 33.1 36.8 44.2 39.8 41.2 Empowering Innovation

  16. Slide 16: Fab Utilization and ASP Trend

    tsmic Fab Utilization and ASP Trend TSMC Group Utilization (Bars) Out Utilization = ASP (Line oe (Line) @1 02 03 OF Of O2 03 O4 OI a2 G3 GF a1 a G3 OF OI a2 G3 a4 a1 02 @ OF 1997 1998) 1999) 2000 2001 ~ 2002 * Average forall Wafeis; ASP varies by technology andwafer size Empowering Innovation The ut

  17. Slide 17: Installed Capacity by FAB

    tshie Installed Capacity by FAB FAB Wafer Size 4Q02 1903 Fab-2 6" 230 206 Fab-3 8" 211 193 Fab-5. 8" 104 106 Fab-6 8" 137 157 Fab-7 8" 67 65 Fab-8 8" 156 161 Fab-12 12" 14 17 Wafer Tech 8" 89 87 VIS 8" 119 120 SSMC 8" 23 24 Total Installed Capacity 1067 1,068 (8" Equivalent Kpcs) Note ‘eatery mls by

  18. Slide 18: Capacity Plan by Technology

    Capacity Plan by Technology 00.13 um 0.15 um m0.18 um 0.25 um 290.35 um O50 um+ 100% 50% 0% 1908 1997 1998 1999 900 2001 1902 2002 3002 4002 1003 2003 3003 4003 >» 0.18um and more advanced technology capacity will be over 45% of total capacity by 2003 year-end, up from 98% at end of 2002. powering I

  19. Slide 19: Recap of Major Events in 4Q02

    tairic Recap of Major Events in 4Q02 » TSMC Unveils Industry’s First Viable 25 Nanometer Transistors (12/11) > TSMC Expands Advanced Technology Libraries, Enhances Distribution Program to Accelerate Availability (12/10) > TSMC Revises Upwards Its Guidance for the Fourth Quarter of 2002 (11/22) » TSM

  20. Slide 20: 1Q03 Guidance

    tine 1Q03 Guidance We continue to expect TSMC revenues to bottom out during the course of the first quarter. We also expect 2003 semiconductor industry revenue growth to be around 8%, while TSMC revenue growth continues to exceed that. In 1Q03, we expect : >» Wafer shipments to decline by a low sing

  21. Slide 21: Attachment A: Unconsolidated Balance Sheet

    Attachment A TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED BALANCE SHEET [LOGO] As of December 31, 2002 and 2001 (Figures in Millions of New Taiwan dollars (NTD) and U.S. dollars (USD)) (1) Dec. 31, 2002 Dec. 31, 2001 YoY USD NTD % NTD % Move Inc (Dec)% ASSETS Cash 1,774 61,657 16.7 33

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