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

Taiwan Semiconductor Manufacturing — Q4 2005 Earnings Presentation

20 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Jan 27, 2006

  1. Slide 1: Utilization Rate and Capacity

    Utilization Rate: Overall capacity utilization improved by eight percentage points to 104% in this quarter, reflecting strong demand from customers across the board and operational efficiencies. TSMC January 26, 2006 II — 2. Capacity 3Q05 4Q05 2005 1Q06 Fab / (Wafer size) (Act.) (Act.) (Act.) (Fcst.

  2. Slide 2: Receivable/Inventory Days, Debt Service and Cash Flow

    Receivable/Inventory Days Trend: Days of Receivable decreased to 42 days in 4Q05 compared to 46 days in the previous quarter. Days of Inventory increased slightly to 42 days from 40 days in the third quarter of 2005. IV — 3. Debt Service (Amount: NT$ Billion) 4Q05 3Q05 4Q04 Cash & S-T Investments 13

  3. Slide 3: Operating Cash Flow Trend, CapEx and Recent Events

    Operating Cash Flow Trend: Operating cash flow of NT$48.9 billion was higher than the NT$37.9 billion generated in the previous quarter, mainly due to increased net income. V — 3. Capital Expenditure (In US$ million) 4Q05 2005 TSMC $ 2,291 TSMC (Shanghai) WaferTech & Others TSMC & Affiliates $ 2,485

  4. Slide 4: TSMC 2005 Fourth Quarter Results Investor Conference

    TSMC 2005 Fourth Quarter Results Investor Conference January 26th, 2006

  5. Slide 5: Agenda

    Agenda Welcome 2005 4Q Financial Results Lora Ho, CFO (unconsolidated) Remarks Rick Tsai, CEO Q&A

  6. Slide 6: 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

  7. Slide 7: 4Q'05 Result Highlights

    * Annualized ROE for the quarter. 4Q'05 Result Highlights

  8. Slide 8: Income Statement - QoQ Comparison

    Income Statement - QoQ Comparison

  9. Slide 9: Income Statement - YoY Comparison

    Income Statement - YoY Comparison

  10. Slide 10: Balance Sheet & Key Indices

    (Amount: NTS blion) Balance Sheet & Key Indices Selected Items tram 40°05 3Q05 4Q'04 Balance Sheet ‘Amount % ‘Amount _% ‘Amount _% Total Assets 5075 100% «© 489-1 100% © 487.6 100% Cash & 8-7 Investments 1324 28% «= 1073221185 24% Accounts Receivable - Trade 347% 312 8% 272 6% Inventory 163 3% 151 3

  11. Slide 11: Cash Flows

    Cash Flows 4005 30°05 4004 Amount NTS bition Amount Amount Amount -Net Income 339 245 222 -Depreciation & Amortization 188 474 168 - Other Op Sourcesi(Uses) a8) en en From Operation 489 37.9 367 ~ Capital Expenciture 033) @4) 208) -S-T Investment 18 08 69) <L Investment ao 7) @1) - Other Investing S

  12. Slide 12: Installed Capacity by Fab

    Note: 1 Figures represent number of 6" wafers. Conversion to 8"-equivalent wafers is by dividing this number by 1.78. 2 Figures represent number of 12" wafers. Conversion to 8"-equivalent wafers is by multiplying this number by 2.25. Installed Capacity by Fab

  13. Slide 13: Capital Expenditures

    ani wie Capital Expenditures _ eae 1006 2006 3006 4005 2006 $ million) TSMC 1210 aT 76 389 2281 TSMC (Shanghai ar ” 4 4 187 WaferTech & Others 3 1 0 3 7 TSMC and Affiliates 4310 460 319 336 2486 Empowering Innovation

  14. Slide 14: Sales Breakdown by Technology

    Sales Breakdown by Technology

  15. Slide 15: Sales Breakdown by Application

    Sales Breakdown by Application

  16. Slide 16: Sales Breakdown by Geography

    Note: This chart does not reflect the actual shipment destination of sales. Sales Breakdown by Geography

  17. Slide 17: Sales Breakdown by Customer

    Sales Breakdown by Customer OFablessiSystem oIDM 100% 75% 50% 25% : i 3 2 C i 0% 1Q04 2004 3004 4Q04 1005 2005 3005 4005 Empowering Innovation

  18. Slide 18: 2005 Highlights

    2005 Highlights =. ‘Amount NTS billion Net Sales Net Sales (USS billion) Gross Margin 06) Net Income Net Income (USS billion) EPS (NT$) 3.73 2% Total Asset 507.54 487.55 4% Total Liability 61.91 88.59 20% Shareholders’ Equity 445.63 998.97 12% Cash-flow from Operating Activities 150.48 149.68 5% Cas

  19. Slide 19: Recap of Recent Major Events - 2/2

    Recap of Recent Major Events - 2/2 TSMC board of directors approved the investment of up to US$75 million in establishing a new venture capital fund (2005/11/08) TSMC won 6 out of 11 award categories at the IR Magazine Hong Kong and Taiwan Awards, including Grand Prix for Best Overall Investor Relat

  20. Slide 20: Contact and Signatures

    http://www.tsmc.com invest@tsmc.com 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 26, 2

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