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

Taiwan Semiconductor Manufacturing — Q1 2003 Earnings Presentation

41 slides from Taiwan Semiconductor Manufacturing's earnings presentation, Apr 30, 2003

  1. Slide 1: Form 6-K Report of Foreign Private Issuer

    SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K 1934 Act Registration No. 1-14700 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 2003 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 29, 2003 By /s/ HARVEY CHANG Harvey Chang S

  3. Slide 3: 1Q03 Quarterly Release

    FOR IMMEDIATE RELEASE 1Q03 Quarterly Release April 29, 2003 CONTACT IN TAIWAN Julie Chan / Eric Chiang/Leon Ku Finance Division TSMC invest@tsmc.com.tw 886-3-568- 2080/ 2087/ 2088 CONTACT IN NEW YORK Daniel Loh/Mami Ogawa Director/Vice President The Global Consulting Group dan.loh@tfn.com/ mami.ogaw

  4. Slide 4: Management outlook statement

    “We expect this fine performance to extend into a firm trend of growth and improving profitability in the coming quarter.” Please visit TSMC's Web site (http://www.tsmc.com) for details about this and other announcements.

  5. Slide 5: Guidance & Forward-Looking Statements

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Page 2 Guidance & Forward-LookingStatements: Based upon the current business outlook, guidance for 2Q03 is as follows: Ø We expect: - Wafer shipments to grow above 20% on a sequential basis; - ASP to improve by 4% due to better product

  6. Slide 6: Conference Call & Webcast Notice

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Page 3 Conference Call at 8 A.M. Eastern Time on April 29, 2003 (Tuesday) Dial-in Access (listen only): United States 1-303-262-2190 Other Locations 852-3009-5027 (Code: “TSMC”) Webcast Access: http://www.tsmc.com Conference Call & Webc

  7. Slide 7: 1Q03 Quarterly Management Report

    FOR IMMEDIATE RELEASE 1Q03 Quarterly Management Report April 29, 2003 CONTACT IN TAIWAN Julie Chan/ Eric Chiang/ Leon Ku Finance Division TSMC invest@tsmc.com.tw 886-3-568-2080/ 2087/ 2088 CONTACT IN NEW YORK Daniel Loh/ Mami Ogawa Director/Vice President The Global Consulting Group dan.loh@tfn.com/

  8. Slide 8: Income before tax and net income

    Income before tax of NT$4.180 billion, up 36% sequentially. With investment tax credits and a more favorable tax result, TSMC’s 1Q03 net income increased 71% to NT$4.358 billion. 6

  9. Slide 9: Revenue Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Table 1 Revenue Analysis (Incl. Outputs from Affiliates) By Application 1Q03 4Q02 1Q02 Computer 41% 39% 56% Communication 38% 35% 18% Consumer 13% 18% 21% Industrial / Others 6% 5% 3% Memory 2% 3% 2% By Technology 1Q03 4Q02 1Q02 X £ 0.1

  10. Slide 10: ASP Trend

    ASP Trend TSMC’s average selling price in U.S. dollars declined 7% versus 4Q02, reflecting weaker pricing power amid general market softness, partly offset by a more favorable product mix.

  11. Slide 11: Gross Profit Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Page 3 Gross Profit Analysis Comparisons 1Q03 4Q02 1Q02 QoQ YoY (Amount: NT$ Bn) COGS 28.9 30.5 23.8 (5)% 22% Depreciation 13.7 13.3 11.9 3% 15% Other MFG Cost 15.2 17.2 11.9 (12)% 28% Gross Profit 10.4 10.7 12.0 (3)% (14)% Gross Margin

  12. Slide 12: Non-Operating Items & Investment

    Investment losses decreased NT$646 million compared with the previous quarter, primarily reflecting better results by WaferTech and investment gains at InveStar. Non-Operating Items & Investment Comparisons 1Q03 4Q02 1Q02 QoQ YoY (Amount: NT$ Bn) Net Int. Inc./(Exp.) (0.3) (0.3) (0.4) 4% (12)% Other

  13. Slide 13: Financial Condition Review: Liquidity Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Page 4 Financial Condition Review: Liquidity Analysis 1Q03 4Q02 1Q02 (Amount:NT$ Bn) Cash & Equiv. 67.4 61.7 60.8 Accounts Receivable 17.6 16.4 16.4 Inventories 10.2 10.3 9.7 Total Current Assets 103.0 94.7 92.4 Accounts Payable 20.3 27

  14. Slide 14: Slide 14

  15. Slide 15: Cash Flow Analysis

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Page 5 Cash Flow Analysis 1Q03 4Q02 1Q02 (Amount: NT$ Bn) Net Income 4.4 2.6 6.6 Deprec. & Amort. 15.4 16.1 12.8 Other OP Sources/(Uses) 0.4 5.2 1.6 Total OP Sources/(Uses) 20.1 23.9 21.0 Net Investing Sources/(Uses) (10.3) (21.7) (10.8

  16. Slide 16: Capital Commitment & Capacity

    TSMC remains fully committed to providing capacity that meets both the fabrication and technological needs of its customers. The Company intends, however, to manage changes in capacity in accordance with the strength of actual demand.

  17. Slide 17: Table 2: Capacity Managed by TSMC

    Taiwan Semiconductor Manufacturing Company, Ltd. April 29, 2003 Page 6 Table 2 Capacity Managed by TSMC Capacity 1Q03 2Q03 Fab Unit/(wafer size) Estimate Actual Estimate Fab 2 (6”)1 206 206 212 Fab 3 (8”) 193 193 202 Fab 5 (8”) 106 106 106 Fab 6 (8”) 157 154 170 Fab 7 (8”) 65 65 64 Fab 8 (8”) 161 16

  18. Slide 18: Unconsolidated Balance Sheet

    TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED BALANCE SHEET As of March 31, 2003 and 2002 (Figures in Millions of New Taiwan dollars (NTD) and U.S. dollars (USD)) (1) Mar. 31, 2003 Mar. 31, 2002 YoY ASSETS USD NTD % NTD % Move Inc(Dec)% Cash 1,941 67,449 18.6 58,349 16.3 9,100 15.6 Sho

  19. Slide 19: Balance sheet notes

    * Have been reviewed by TNS-external auditor. Note : (1) New Taiwan dollar amounts have been translated into U.S. dollars at the rate of NT$34.75 per U.S. dollar at the end of March, 2003.

  20. Slide 20: Unconsolidated Income Statement

    TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED INCOME STATEMENT For the Three Months Ended March 31, 2003 and 2002 (Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1) Except for Per Share Amounts and Shares Outstanding) Year over Year Comparison Sequential Comp

  21. Slide 21: Unconsolidated Statement of Cash Flows

    TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. UNCONSOLIDATED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2003 and 2002 (Figures in Million of New Taiwan dollars (NTD) and U.S. dollars (USD)) (1) 3 MTHS 2003 3 MTHS 2002 4Q’02 USD NTD NTD NTD Cash Flows from Operating Activities: Net I

  22. Slide 22: TSMC 2003 First Quarter Results Investor Conference

    [LOGO] TSMC 2003 First Quarter Results Investor Conference April 29th, 2003 Empowering Innovation

  23. Slide 23: Agenda

    [LOGO] Agenda • Welcome • 1Q’03 Financial Results Harvey Chang (unconsolidated) • Remarks Morris Chang • Q&A Morris Chang et. al. Empowering Innovation

  24. Slide 24: Safe Harbor Notice

    [LOGO] 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

  25. Slide 25: 1Q 2003 Result Highlights

    [LOGO] 1Q 2003 Result Highlights 1Q ’03 4Q ’02 1Q ’02 Amount Amount Amount Amount:NT$Billion Net Sales 39.33 41.15 35.79 Net Income 4.36 2.55 6.59 EPS (NT$) 0.23 0.13 0.35 Cash and Equivalent 67.45 61.66 60.80 Interest-bearing Debt 35.00 39.00 44.00 Shareholders’ Equity 299.88 295.85 281.71 Wafers S

  26. Slide 26: 1Q03 Income Statement – YoY Comparison

    [LOGO] 1Q03 Income Statement – YoY Comparison TSMC w/o Affiliates 1Q ’03 1Q ’02 NT$Billion Net Sales 35.1 100% 31.9 100% COGS (25.0) -71% (20.2) -63% Gross Profit 10.1 29% 11.7 37% 1Q ’03 1Q ’02 YOY Amount % Amount % % Amount:NT$Billion Net Sales 39.33 100% 35.79 100% 10% COGS (28.94) -74% (23.76) -

  27. Slide 27: Net Income and EPS

    Net Income 4.36 11% 6.59 18% -34% EPS (NT$) 0.23 0.35 Empowering Innovation

  28. Slide 28: 1Q03 Balance Sheet, Cash Flow, & Key Ratios – YoY

    [LOGO] 1Q03 Balance Sheet, Cash Flow, & Key Ratios – YoY Comparison 1Q ’03 1Q ’02 YOY Amount: NT $ Billion Amount % Amount % % Balance Sheet Cash & Equivalent 67.4 19% 60.8 17% 11% Interest-bearing Debt 35.0 10% 44.0 12% -20% Equity 299.9 83% 281.7 79% 6% Total Assets 363.3 100% 357.2 100% 2% Cash F

  29. Slide 29: 1Q03 Income Statement – QoQ Comparison

    [LOGO] 1Q03 Income Statement – QoQ Comparison TSMC w/o Affiliates 1Q’03 4Q’02 NT$Billion Net Sales 35.1 100% 36.9 100% COGS (25.0) -71% (26.4) -72% Gross Profit 10.1 29% 10.5 28% 1Q’03 4Q’02 QOQ Amount % Amount % % Amount: NT$Billion Net Sales 39.33 100% 41.15 100% -4% COGS (28.94) -74% (30.47) -74%

  30. Slide 30: EPS (NT$)

    EPS (NT$) 0.23 0.13 EMPOWERING INNOVATION

  31. Slide 31: Income Tax & Investment Tax Credit

    [LOGO] Income Tax & Investment Tax Credit 4Q’02 1Q’03 Amount: NT$Billion Income Before Tax & L/T Investment 5.2 5.7 Imputed Income Tax (0.9) (1.0) Investment Tax Credit 0.4 1.2 Income Tax, as reported (0.5) 0.2* * Higher investment tax credit (ITC) in reflection of a restored ITC benefit due to a re

  32. Slide 32: 1Q03 Balance Sheet, Cash Flow, & Key Ratios – QoQ

    [LOGO] 1Q03 Balance Sheet, Cash Flow, & Key Ratios – QoQ Comparison 1Q‘03 4Q‘02 QOQ Amount: NT$Billion Amount % Amount % % Balance Sheet Cash & Equivalent 67.4 19% 61.7 17% 9% Interest-bearing Debt 35.0 10% 39.0 11% -10% Equity 299.9 83% 295.9 80% 1% Total Assets 363.3 100% 370.0 100% -2% Cash Flow

  33. Slide 33: Sales Breakdown by Technology

    [LOGO] Sales Breakdown by Technology [BAR CHART] Sales (NT$Bn) 35.8 44.2 39.8 41.2 39.3 Empowering Innovation

  34. Slide 34: Sales Breakdown by Application

    [LOGO] Sales Breakdown by Application [BAR CHART] Sales (NT$Bn) 35.8 44.2 39.8 41.2 39.3 Empowering Innovation

  35. Slide 35: Sales Breakdown by Geography

    [LOGO] Sales Breakdown by Geography [BAR CHART] Sales (NT$Bn) 35.8 44.2 39.8 41.2 39.3 Note: This chart does not reflect the actual shipment destination of sales. Empowering Innovation

  36. Slide 36: Sales Breakdown by Customer

    [LOGO] Sales Breakdown by Customer [BAR CHART] Sales (NT$Bn) 35.8 44.2 39.8 41.2 39.3 Empowering Innovation

  37. Slide 37: Fab Utilization and ASP Trend

    [LOGO] Fab Utilization and ASP Trend [GRAPHIC] * Average for all Wafers; ASP varies by technology and wafer size ** The utilization rates in 1999 and 2000 have been restated to include affiliates (WT, TASMC, WSMC, and VIS) Empowering Innovation

  38. Slide 38: Installed Capacity by FAB

    [LOGO] Installed Capacity by FAB FAB Wafer Size 1Q03 (est.) 1Q03(act.) 2Q03(est.) Fab-2 2 6” 206 206 212 Fab-3 1 8” 193 193 202 Fab-5 8” 106 106 106 Fab-6 8” 157 154 170 Fab-7 8” 65 65 64 Fab-8 8” 161 161 170 Fab-12 2 12” 17 17 22 Wafer Tech 8” 87 87 88 VIS 8” 120 80 85 SSMC 8” 24 24 24 Total Instal

  39. Slide 39: Recap of Major Events in 1Q03

    [LOGO] Recap of Major Events in 1Q03 Ø TSMC Leads Industry in Production of 0.13um FSG and Low-K Products (04/17) Ø TSMC and NVIDIA Reaffirm Partnership (03/26) Ø TSMC Filed Information with Taiwan Stock Exchange’s Market Observation Post System Regarding Today’s Media Report (Concerning Stock Divid

  40. Slide 40: Contact

    [LOGO] http://www.tsmc.com invest@tsmc.com.tw Empowering Innovation

  41. Slide 41: 2Q03 Guidance

    [LOGO] 2Q03 Guidance Ø Wafer shipments to grow above 20% on a sequential basis; Ø ASP to improve by 4% due to better product mix; Ø Revenues from advanced-process technologies (0.18um and more advanced) to account for about 60% of total wafer sales; Ø An overall utilization rate exceeding 80%, with

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