Taiwan Semiconductor Manufacturing Co., Ltd. · TWSE:2330
Taiwan Semiconductor Manufacturing — Q4 2003 Earnings Presentation
35 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Jan 30, 2004
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 January 2004 Taiwan Semiconductor Manufacturing Company Ltd. (Translation of R
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: January 29, 2004 By: /s/ Lora Ho Lora Ho Vice Pre
Slide 3: Taiwan Semiconductor Reports 5% Increase in Sequential EPS Driven by 5% Higher Revenue
Taiwan Semiconductor Reports 5% Increase in Sequential EPS Driven by 5% Higher Revenue Hsin-Chu, Taiwan, R.O.C., January 29, 2004 — Taiwan Semiconductor Manufacturing Company, Ltd. today announced revenues of NT$57.78 billion, net income of NT$16 billion and fully diluted earnings per share of NT$0.
Slide 4: Conference Call & Webcast Notice and Company Profile
Conference Call & Webcast Notice: TSMC’s quarterly review conference call will be held at 8 A.M. Eastern Time (9 P.M. Taiwan Time) on Thursday, January 29, 2004. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC’s web site a
Slide 5: 4Q03 Quarterly Management Report
FOR IMMEDIATE RELEASE 4Q03 Quarterly Management Report January 29, 2004 CONTACT IN TAIWAN Elizabeth Sun / Julie Chan / Eric Chiang Investor Relations Division TSMC invest@tsmc.com 886-3-568-2085/ 2080/ 2087 Topics in This Report • Revenue Analysis • Utilization & Capacity • Profit & Expense Analysis
Slide 6: I. Revenue Analysis
Taiwan Semiconductor Manufacturing Company, Ltd. January 29, 2004 I. Revenue Analysis I – I. Wafer Sales Analysis By Application 4Q03 3Q03 4Q02 Computer 35% 36% 39% Communication 42% 36% 35% Consumer 17% 21% 18% Industrial/Others 4% 5% 5% Memory 2% 2% 3% By Technology 4Q03 3Q03 4Q02 0.13um- 18% 19%
Slide 7: ASP Trend
ASP Trend: Average selling price in U.S. dollars declined 5.5% versus 3Q03. This was mainly due to a product mix shift in favor of mature technologies as well as a competitive pricing environment in 4Q03. 2
Slide 8: II. Utilization & Capacity
Taiwan Semiconductor Manufacturing Company, Ltd. January 29, 2004 II. Utilization & Capacity Utilization Rate: Overall capacity utilization improved to 101% in the latest quarter from 98% in the third quarter. This increase reflected the sequential business improvement experienced in the fourth quar
Slide 9: III. Profit & Expense Analysis
Taiwan Semiconductor Manufacturing Company, Ltd. January 29, 2004 III. Profit & Expense Analysis III – 1. Gross Profit Analysis 4Q03 3Q03 4Q02 QoQ YoY (Amount: NT$ Billion) COGS 35.1 33.4 30.5 5% 15% Depreciation 13.9 14.0 13.3 -1% 8% Other MFG Cost 21.2 19.4 17.2 9% 31% Gross Profit 22.7 21.4 10.7
Slide 10: IV. Financial Condition Review
Taiwan Semiconductor Manufacturing Company, Ltd. January 29, 2004 IV. Financial Condition Review IV—1. Liquidity Analysis 4Q03 3Q03 4Q02 (Amount: NT$ Billion) Cash & S-T Investments 110.8 94.4 61.7 Accounts Recivable 25.8 25.0 16.4 Inventory 10.9 11.8 10.3 Total Current Assets 158.5 135.2 94.7 Accou
Slide 11: V. Cash Flow & CapEx
Taiwan Semiconductor Manufacturing Company, Ltd. January 29, 2004 V. Cash Flow & CapEx V—1. Cash Flow Analysis 4Q03 3Q03 4Q02 (Amount: NT$ Billion) Net Income 16.0 15.2 2.6 Depreciation & Amortization 15.5 15.5 16.1 Other Op Sources/(Uses) (0.0) 3.3 5.2 Total Op Sources/(Uses) 31.5 33.9 23.9 Capital
Slide 12: Capacity commitment statement
TSMC remains fully committed to providing capacity that meets both the fabrication and technological needs of its customers. The Company intends, however, to manage capacity in accordance with the strength of actual and sustainable demand so as to meet its return objectives for shareholders. 6
Slide 13: VI. Recap of Recent Important Events & Announcements
Taiwan Semiconductor Manufacturing Company, Ltd. January 29, 2004 VI. Recap of Recent Important Events & Announcements • TSMC R&D Team Receives 2003 Outstanding Scientific and Technological Worker Award from Executive Yuen of Republic of China (2003/12/22) • TSMC Filed Law Suit Against SMIC for Pate
Slide 14: Attachment A: Unconsolidated Balance Sheet
Attachment A TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED BALANCE SHEET As of December 31, 2003 and 2002 (Figures in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1) Dec. 31, 2003 Dec. 31, 2002 YoY USD NTD % NTD % Move Inc(Dec)% ASSETS Cash 2,893 98,288 24.8 61,657 16.
Slide 15: Attachment B: Unconsolidated Income Statement (Quarter)
Attachment B TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED INCOME STATEMENT For the Three Months Ended December 31, 2003 and 2002 (Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1) Except for Per Share Amounts and Shares Outstanding) Year over Year Comparison Se
Slide 16: Attachment C: Unconsolidated Income Statement (Year)
Attachment C TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED INCOME STATEMENT For the Twelve Months Ended December 31, 2003 and 2002 (Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD)(1) Except for Per Share Amounts and Shares Outstanding) 12 months ended Dec. 31 2003
Slide 17: Attachment D: Unconsolidated Statement of Cash Flows
Attachment D TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED STATEMENT OF CASH FLOWS For the Twelve Months Ended December 31, 2003 and 2002 (Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1) 12 MTHS 2003 12 MTHS 2002 9 MTHS 2003 Q4 2003 USD NTD NTD NTD NTD Cash F
Slide 18: 2003 Fourth Quarter Results TSMC Investor Conference
2003 Fourth TSMC Investor January 29th, Conference Quarter 2004 Results
Slide 19: Agenda
4Q’03 Financial Welcome Agenda Remarks (unconsolidated) 2 Q&A Morris Results Chang Lora Ho
Slide 20: Safe Harbor Notice
Safeforward-looking TSMC’s looking and the Information vary with “SEC”) Form other from obligation result Except any information, 3 actual forward-looking Harbor can the time documents F-3, ofas on statements United new statements berequired to filed results June found as Notice future time. update
Slide 21: 4Q'03 Financial Highlights
4Q’03 Amount:NT$ Net EPS Cash Interest-bearing Shareholders’ Wafers Utilization ROE * Starting ** 4 Calculated Annualized Sales Income (NT$) (%) and Result 3Q’03 Shipped from S-T ** 57.78 (%) 0.79 16.00 19.9% by 1Q’03, 4Q’02 Highlights Billion Investment Equity ROE *dividing 54.88 Debt (Kpcs) 0.75 1
Slide 22: 4Q03 QoQ Income Statement Comparison
4Q03 QoQ TSMC NT$Billion 4Q’03 Amount:NT$Billion COGS Gross Operating Investment Income Net EPS 5 Sales Non-operating Income (NT$) Comparison Income Profit 3Q’03 (28.2) (35.07) w/o Tax before 50.6 57.78 Expense Income Affiliates Income 0.79 4Q’03 16.00 Credit 22.4 22.71 -56% QOQ Statement Tax 100% -
Slide 23: 4Q03 YoY Income Statement Comparison
4Q03 YoY TSMC NT$Billion 4Q’03 Amount:NT$Billion COGS Gross Operating Investment Income Net EPS 6 Sales Non-operating Income (NT$) Comparison Income Profit 4Q’02 (28.2) (35.07) w/o Tax before 50.6 57.78 Expense Income Affiliates Income 0.79 4Q’03 16.00 Credit 22.4 22.71 YOY -56% Statement Tax 100% -
Slide 24: 2003 Income Statement
TSMC NT$Billion 2003 Amount:NT$Billion COGS Gross Operating Investment Income Net EPS 7 Sales Non-operating Income (NT$) Income 2002 Profit (107.1) (129.01) w/o Tax before 178.8 201.90 Expense Income YOY Affiliates Income 2.33 2003 47.26 Credit 71.7 72.89 Statement Tax -60% 100% -64% 1.05 100% 2002
Slide 25: Balance Sheet and Key Ratios
Amount:NT$Billion Balance Cash Accounts L-T Equity Total Key A/R Inventory Current * 8 Income Debt Turnover Ratios Asset &329.2 Asset S-T Liability Ratio Sheet 30.0 Statement Receivable Turnover 10.9 396.4 Investment 83% 5.2 158.5 Days* Amount &8% 3%Key 30.5 100% 5.0 313.0 35.0 11.8 Days* 40% figure
Slide 26: Cash Flow
Cash 4Q’03 Amount:NT$Billion -From 9 Net Flow Depreciation Capital S-T Long-term Profit Investment Operation Investment Financing 3Q’03 Expenditure 16.0 Bond 4Q’02 &31.5 (0.1) 15.2 Amort. (0.9) (15.9) 0.0Amount 33.9 2.6 (0.4) (12.8) 0.0 (8.6) (17.4) 15.5 (5.0) 23.9 (5.1) 0.0 (8.2) Amount 15.5 (21.7)
Slide 27: Sales Breakdown by Technology
Sales 0.50u+ 100% 17 24 75% 21 50% 25 27 20 25% 11 9 1 8 4Q02 0% 10 110 1111 12 1919 21 24 2017 24 Breakdown 91Q03 180.35u 7287 2Q03 0.25u by 3Q03 0.18u Technology 4Q03 0.15u 0.13u-
Slide 28: Sales Breakdown by Application
Sales Computer 100% 3 13 18 38 75% 35 25% 50% 36 39 4Q02 0% 11236 16 21 34 42 2 41 2Breakdown 1Q03 17 35 5243 6 5Comm. 52Q03 4 by3Q03 Consumer Application 4Q03Memory Others
Slide 29: Sales Breakdown by Geography
Sales US 100% 5 14 76 50% 75% 4Q02 0% 25% Note: 12576 13 Asia 4 Breakdown This 1Q03 12 77 5 6Europe 11 76 7chart 82Q03 758 Japan does by 3Q03 Geography not4Q03 reflect the actual shipment destination of sales.
Slide 30: Sales Breakdown by Customer Type
Sales Fabless 1 31 100% 68 50% 75% 4Q02 0% 25% 13068 32 1 1Breakdown 1Q03 260IDM 73 26 2Q03 73 29 71 System by 3Q03 Customer 4Q03
Slide 31: Wafer ASP and Utilization Trend
Fab ASP/8” (US$) 2,000 98 88 84 69 1,000 0 1Q02 Utilization * ** 14Average 0Starting 100 88 70 66Utilization 2Q02 101 50 (%) Equiv.* for (RHS) 1Q03 3Q02 alland Out wafers; calculation ASP 4Q02 ASP Utilization** (LHS) 1Q03 Trend ASPof varies 2Q03 utilization by 3Q03 technology rate 4Q03 excludes and
Slide 32: Installed Capacity
Installed 1 (e F W S T (8 * ** *** and 15Q Figures Aaos“aFigures S bta M t.) B multiplication 0Conversions E fe-1 -2 -3 -5 -6 -7 -8 4lW qC rT428*uT8Capacity -o aSrepresent “6iv **e“fe represent M 2w 3 1“c2a1r8 2hnle 1 5 C 9S 29 38e1-M 2 n“iz to 7“d0by 8 4 0 6 4t9 8e8number 3 7 1 98”-equivalent K 5a0
Slide 33: Recap of Recent Major Events
Recap Misappropriation Technological (2003/12/22) Secret TSMC’s Advanced TSMC Please 16 of visit R&D Filed Reported Board andDecember Recent Technology OmniVision TSMC’s Law Team of Worker Directors Major the Suit Receives Wafer December Web Award Against Capacity Events to (2003/12/19) site Output
Slide 34: 1Q04 Guidance
1Q04 Wafer point ASP previous Overall Gross Demand sequentially for the 2004the computer to CapEx sequentially Guidance profit shipments consumer decline utilization to quarter improve margin expected segment slightly, to segment, rate increase percentage into the tobut be be communications but magn
Slide 35: invest@tsmc.com http://www.tsmc.com
invest@tsmc.com http://www.tsmc.com
Taiwan Semiconductor Manufacturing — Q4 2003 Earnings Presentation on 6ix