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

Taiwan Semiconductor Manufacturing — Q3 2006 Earnings Presentation

16 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Oct 26, 2006

  1. Slide 1: TSMC 2006 Third Quarter Results Investor Conference

    Proprietary TSMC 2006 Third Quarter Results Investor Conference October 26th, 2006 TSMC Oct. 26, 2006 P. © 2006 TSMC, All Rights Reserved.

  2. Slide 2: Agenda

    Agenda Proprietary ¾ Welcome ¾ 2006 3Q Consolidated Financial Results ¾ Q&A TSMC Oct. 26 P. 2 © 2006 TSMC, All Rights Reserved.

  3. Slide 3: Safe Harbor Notice

    Safe Harbor Notice Proprietary ¾ 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. ¾ Information as to those factors that could

  4. Slide 4: 3Q'06 Result Highlights

    3Q’06 Result Highlights Proprietary 3Q'06 2Q'06 3Q'05 Amount:NT$ billion Amount Amount Amount Net Sales 82.48 82.12 70.50 (1) Net Income 32.49 34.00 24.49 EPS (NT$) 1.26 1.32 0.95 Total Assets 563.35 593.74 496.12 Total Liabilities 81.49 146.24 84.22 Shareholders' Equity 481.86 447.50 411.90 Shipmen

  5. Slide 5: Income Statements

    Income Statements Proprietary Amount:NT$ billion 3Q'06 2Q'06 3Q'05 QoQ YoY Net Sales 82.48 82.12 70.50 0.4% 17.0% COGS (41.35) (39.62) (39.54) 4.4% 4.5% Gross Profit 41.13 42.50 30.96 -3.2% 32.9% Gross Margin 49.9% 51.8% 43.9% Operating Expense (7.50) (7.18) (6.78) 4.5% 10.6% Operating Income 33.63

  6. Slide 6: Balance Sheets & Key Indices

    Balance Sheets & Key Indices Proprietary Selected Items from Balance Sheets 3Q'06 2Q'06 3Q'05* (Amount: NT$ billion) Amount % Amount % Amount % Cash & Marketable Securities 164.1 29.1% 211.6 35.6% 119.0 24.0% Accounts Receivable - Trade 37.7 6.7% 38.0 6.4% 39.1 7.9% Inventory 20.3 3.6% 20.1 3.4% 16.

  7. Slide 7: Cash Flows

    Cash Flows Proprietary * 3Q'06 2Q'06 3Q'05 Amount:NT$ billion Amount Amount Amount - Net Income 32.5 34.0 24.5 - Depreciation & Amortization 18.4 17.9 19.1 - Other Op Sources/(Uses) 1.8 (1.5) (3.7) From Operation 52.7 50.4 39.9 - Capital Expenditure (28.3) (21.4) (10.5) - Marketable Financial Instru

  8. Slide 8: Installed Capacity

    Installed Capacity Proprietary 1Q06 2Q06 3Q06 4Q06 2006 FAB / (Wafer size) (Act.) (Act.) (Act.) (est.) (est.) Fab-2 ( 6") 1 244 258 258 266 1,025 Fab-3 ( 8") 246 252 265 258 1,021 Fab-5 ( 8") 135 138 147 153 573 Fab-6 ( 8") 215 222 233 248 918 Fab-7 ( 8") 33 23 4 0 60 Fab-8 ( 8") 231 233 234 248 946

  9. Slide 9: Capital Expenditures

    Capital Expenditures Proprietary ¾ 2006 CapEx to be about US$2.6 billion CapEx 1Q06 2Q06 3Q06 YTD ** (in US$ million) TSMC 344 653 852 1,849 TSMC Subsidiaries 12 11 14 37 TSMC Consolidated 356 664 866 1,886 * YTD CapEx based on the weighted average exchange rate of NT$32.421 per US dollar. TSMC Oct.

  10. Slide 10: Sales Breakdown by Technology

    Sales Breakdown by Technology Proprietary 0.50um+ 0.25/0.35um 0.15/0.18um 0.11/0.13um 90nm 100% 4 2 10 17 20 24 24 41 41 75% 33 32 29 25 25 50% 31 34 35 32 32 32 33 25% 18 17 16 14 14 14 13 6 6 6 5 5 5 5 0% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 TSMC Oct. 26 P. 10 © 2006 TSMC, All Rights Reserved.

  11. Slide 11: Sales Breakdown by Application

    Sales Breakdown by Application Proprietary Computer Comm. Consumer Memory Others 100% 6 6 5 5 5 5 5 2 1 1 1 1 1 2 17 18 18 20 20 23 21 75% 37 39 41 41 41 44 45 50% 25% 38 34 37 30 32 30 28 0% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 TSMC Oct. 26 P. 11 © 2006 TSMC, All Rights Reserved.

  12. Slide 12: Sales Breakdown by Geography

    Sales Breakdown by Geography Proprietary N. America Asia Europe Japan 100% 7 6 5 4 4 4 4 8 7 9 8 6 8 9 8 9 11 11 10 10 11 75% 50% 79 77 75 77 78 77 78 25% 0% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 TSMC Note: This chart does not reflect the actual shipment destination of sales. Oct. 26 P. 12 © 2006 TSMC,

  13. Slide 13: Sales Breakdown by Customer

    Sales Breakdown by Customer Proprietary Fabless/System IDM 100% 31 26 29 28 26 28 29 75% 50% 69 74 71 72 74 72 71 25% 0% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 TSMC Oct. 26 P. 13 © 2006 TSMC, All Rights Reserved.

  14. Slide 14: 4Q'06 Guidance

    4Q’06 Guidance Proprietary ¾ Revenues to be between NT$74 billion and NT$76 billion ¾ Gross profit margin to be between 45% and 47% ¾ Operating profit margin to be between 35% and 37% TSMC Oct. 26 P. 14 © 2006 TSMC, All Rights Reserved.

  15. Slide 15: Recap of Recent Major Events

    Recap of Recent Major Events Proprietary ¾ TSMC and Nvidia Celebrate New Milestone: 500 Million Processors (2006/10/24) ¾ TSMC is Voted by the CommonWealth Magazine as the Most Admired Company in Taiwan for the Tenth Consecutive Time (2006/10/16) ¾ TSMC is Ranked the Highest in Taiwan Among Asia Top

  16. Slide 16: Contact: tsmc.com, invest@tsmc.com

    Proprietary http://www.tsmc.com invest@tsmc.com TSMC Oct. 26, 2006 P. © 2006 TSMC, All Rights Reserved.

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