Year-over-year, third quarter revenue decreased 3.3% while net income decreased 0.1% and diluted EPS increased 0.3%. Compared to second quarter of 2009, third quarter results represent a 21.2% increase in revenue, an increase of 25% in net income, and an increase of 24.8% in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
Gross margin for the quarter was 47.7%, operating margin was 35.6%, and net margin was 34%.
As demand outlook continued to improve, third quarter saw a solid growth in the demand for semiconductors across all major applications.
Advanced process technologies (0.13-micron and below) accounted for 67% of wafer revenues. 90-nanometer process technology accounted for 18% of wafer revenues, 65-nanometer 31%, and 40-nanometer exceeded 4% of total wafer sales.
"For the fourth quarter, we expect the demand from computer related applications to grow strongly while communication related applications will take a pause after two consecutive quarters' strong momentum, and consumer applications will decline following their seasonal pattern," said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our current business outlook, management expects overall performance for fourth quarter 2009 to be as follows:
-- Revenue is expected to be between NT$90 billion and NT$92 billion;
-- Gross profit margin is expected to be between 47% and 48.5%;
-- Operating profit margin is expected to be between 35.5% and 37%."
Lora Ho further said: "Due to stronger demand for 40-nanometer and 65-nanometer technologies, TSMC 2009 capital expenditure is further raised and is expected to be around US$2.7 billion."
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (8 p.m. Taiwan Time) on Thursday, October 29, 2009. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-614-3518 in the U.S., 852-3002-1672 in Hong Kong, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.
Profile
TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry's largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company's total managed capacity in 2008 exceeded nine million (8-inch equivalent) wafers, including capacity from two advanced 12-inch GIGAFABs(TM), four eight-inch fabs, one six-inch fab, as well as TSMC's wholly owned subsidiaries, WaferTech and TSMC China, and its joint venture fab, SSMC. TSMC is the first foundry to provide 40nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com .
(Management Report and Tables Follow)
TSMC 3Q09 Quarterly Management Report October 29, 2009
Topics in This Report
-- Revenue Analysis
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow
-- CapEx & Capacity
-- Recap of Recent Important Events & Announcements
Operating Results Review:
Summary:
(Amounts are on consolidated basis
and are in NT billions except
otherwise noted) 3Q09 2Q09 3Q08 QoQ YoY
EPS (NT$ per common share) 1.18 0.94 1.17 24.8% 0.3%
(US$ per ADR unit) 0.18 0.14 0.19 -- --
Consolidated Net Sales 89.94 74.21 92.98 21.2% (3.3%)
Gross Profit 42.86 34.30 43.09 25.0% (0.5%)
Gross Margin 47.7% 46.2% 46.3% -- --
Operating Expense (10.87) (9.17) (10.18) 18.6% 6.9%
Operating Income 31.99 25.13 32.91 27.3% (2.8%)
Operating Margin 35.6% 33.9% 35.4% -- --
Non-Operating Items 0.97 1.26 1.51 -- --
Net Income 30.55 24.44 30.57 25.0% (0.1%)
Net Profit Margin 34.0% 32.9% 32.9% -- --
Wafer Shipment (kpcs 8 inch-equiv.) 2,445 1,971 2,411 24.0% 1.4%
Note: Total outstanding shares were 25,901mn units on 9/30/09
Financial Highlights:
Third Quarter 2009
-- Consolidated net sales were NT$89.94 billion, representing a 21.2%
growth from NT$74.21 billion in 2Q09 and a 3.3% decline from NT$92.98
billion in 3Q08.
-- Gross margin was 47.7%, 1.5 percentage points higher than 2Q09 and 1.4
percentage points higher than 3Q08.
-- Operating margin was 35.6%, 1.7 percentage points higher than 2Q09 and
0.2 percentage point higher than 3Q08. Operating expenses were NT$10.87
billion, NT$1.7 billion and NT$0.69 billion higher than prior and
year-ago quarter, respectively.
-- The combined result from non-operating income and long-term investments
was a gain of NT$0.97 billion, comparing with a gain of NT$1.26 billion
in 2Q09 and a gain of NT$1.51 billion in 3Q08.
-- Consolidated net income attributable to shareholders of the parent
company was NT$30.55 billion, 25.0% increase from prior quarter. Net
profit margin was 34.0% and diluted EPS was NT$1.18.
I. Revenue Analysis
I. Wafer Sales Analysis
By Application 3Q09 2Q09 3Q08
Computer 30% 28% 33%
Communication 46% 45% 41%
Consumer 18% 21% 20%
Industrial/Others 6% 6% 6%
By Technology 3Q09 2Q09 3Q08
45/40nm 4% 1% 0%
65nm 31% 28% 25%
90nm 18% 23% 26%
0.11/0.13um 14% 13% 15%
0.15/0.18um 21% 23% 22%
0.25/0.35um 9% 9% 9%
0.50um+ 3% 3% 3%
By Customer Type 3Q09 2Q09 3Q08
Fabless/System 80% 82% 70%
IDM 20% 18% 30%
By Geography 3Q09 2Q09 3Q08
North America 70% 65% 74%
Asia Pacific 13% 18% 11%
China 3% 3% 1%
Europe 11% 11% 11%
Japan 3% 3% 3%
Revenue Analysis:
3Q09 business saw a continued improvement with demand growing across the board. Sequentially, revenues from computer applications grew the most with 29% quarter-over-quarter growth rate, followed by communication's 25% and consumer's 11%, respectively.
As a result of continued ramp-up of our 40/45nm technology, revenues from 40/45nm were more than quadrupled during the quarter and accounted for 4% of total wafer sales. Meanwhile, revenues from 65nm and 90nm each accounted for 31% and 18% of total wafer sales. Overall, revenues from advanced technologies (0.13-micron and below) represented 67% of total wafer sales, two percentage points up from prior quarter.
Revenues from IDM customers accounted for 20% of total wafer sales in 3Q09, two percentage points increase from 2Q09.
From a geographic perspective, revenues from customers based in North America accounted for 70% of total wafer sales, five percentage points up from prior quarter. Meanwhile, sales from Asia Pacific, China, Europe and Japan accounted for 13%, 3%, 11%, and 3% of total wafer sales, respectively.
II. Profit & Expense Analysis
II - 1. Gross Profit Analysis
(In NT billions) 3Q09 2Q09 3Q08
COGS 47.08 39.91 49.89
Depreciation 18.37 18.54 19.06
Other MFG Cost 28.71 21.37 30.83
Gross Profit 42.86 34.30 43.09
Gross Margin 47.7% 46.2% 46.3%
Gross Profit Analysis:
Gross margin for the third quarter 2009 was 47.7%, up from 46.2% of prior quarter. The 1.5 percentage points improvement in gross margin was primarily due to a higher level of capacity utilization and continued cost improvement, partially offset by a decline in pure price and unfavorable exchange rate.
II - 2. Operating Expenses
(In NT billions) 3Q09 2Q09 3Q08
Total Operating Exp. 10.87 9.17 10.18
SG&A 4.67 4.07 4.20
Research & Development 6.20 5.10 5.98
Total Operating Exp. as a % of Sales 12.1% 12.3% 10.9%
Operating Expenses:
Total operating expenses for 3Q09 increased by NT$1.70 billion to NT$10.87 billion, representing 12.1% of net sales, better than 12.3% of net sales in 2Q09.
SG&A expenses increased by NT$0.60 billion from 2Q09. The increase was mainly due to higher legal fee and a one-time donation.
Research and development expenditures increased by NT$1.1 billion sequentially, primarily due to increased activities in 28nm and 22nm technology development.
II - 3. Non-Operating Items
(In NT billions) 3Q09 2Q09 3Q08
Non-Operating Inc./(Exp.) 0.52 1.15 1.33
Net Interest Income/(Exp.) 0.42 0.56 1.15
Other Non-Operating 0.10 0.59 0.18
L-T Investments 0.45 0.11 0.18
SSMC 0.26 0.19 0.15
Others 0.19 (0.08) 0.03
Total Non-Operating Items 0.97 1.26 1.51
Non-Operating Items:
Combined result from non-operating income and long-term investments was a gain of NT$0.97 billion for third quarter 2009.
Non-operating income was NT$0.52 billion, lower than NT$1.15 billion in 2Q09. The sequential decline was primarily due to the absence of litigation compensation and less interest income.
Net investment gain was NT$0.45 billion, higher than NT$0.11 billion of prior quarter, mainly due to continued business improvement among invested companies.
III. Financial Condition Review
III - 1. Liquidity Analysis
(Selected Balance Sheet Items)
(In NT billions) 3Q09 2Q09 3Q08
Cash & Marketable Securities 180.32 246.77 158.17
Accounts Receivable - Trade 35.88 33.38 45.33
Inventory 19.18 18.97 21.82
Total Current Assets 244.24 309.42 232.35
Accounts Payable 26.30 25.96 17.75
Current Portion of Bonds Payable 0.00 0.00 8.00
Dividends Payable 0.00 77.17 0.00
Accrued Bonus to Employees 8.62 11.49 13.28
Accrued Liabilities and Others 20.09 15.01 23.10
Total Current Liabilities 55.01 129.63 62.13
Current Ratio (x) 4.4 2.4 3.7
Net Working Capital 189.23 179.79 170.22
Liquidity Analysis:
At the end of 3Q09, total cash and marketable securities decreased by NT$66.45 billion to NT$180.32 billion. We paid NT$76.88 billion for cash dividends and generated NT$14.62 billion of free cash flow during this quarter.
Total current liabilities decreased by NT$74.62 billion in this quarter, primarily due to payment of cash dividends.
Net working capital was NT$189.23 billion and current ratio increased to 4.4x.
III - 2. Receivable/Inventory Days
(In Number of Days)
3Q09 2Q09 3Q08
Days of Receivable 36 30 43
Days of Inventory 41 42 45
Receivable and Inventory Days:
Sequentially, days of receivable increased by six days to 36 days in 3Q09, mainly due to average accounts receivable growing faster than sales. The quality of collection remains the same.
Days of inventory decreased by one day to 41 days.
III - 3. Debt Service
(In NT billions) 3Q09 2Q09 3Q08
Cash & Marketable Securities 180.32 246.77 158.17
Interest-Bearing Debt 15.33 15.57 23.41
Net Cash Reserves 164.99 231.20 134.76
Debt Service:
Net cash reserves, defined as the excess of cash and short-term marketable securities over interest-bearing debt, decreased by NT$66.21 billion to NT$164.99 billion at the end of 3Q09, primarily due to cash dividend payment, net off by free cash flow generated during this quarter.
IV. Cash Flow
IV - 1.1. Cash Flow Analysis
(In NT billions) 3Q09 2Q09 3Q08
Net Income 30.55 24.44 30.57
Depreciation & Amortization 20.00 20.05 20.69
Employee Profit Sharing Payment* (7.49) n.a n.a
Other Operating Sources/(Uses) 3.60 (19.97) 4.64
Total Operating Sources/(Uses) 46.66 24.52 55.90
Capital Expenditure (32.04) (7.42) (10.38)
Marketable Financial Instruments (18.94) 1.68 (18.07)
Other Investing Sources/(Uses) (0.53) (0.25) 1.93
Net Investing Sources/(Uses) (51.51) (5.99) (26.52)
Cash Dividends (76.88) 0.00 (76.78)
Employee Profit Sharing Payment* n.a n.a (3.94)
Purchase of Treasury Stock 0.00 0.00 (23.81)
Other Financing Sources/(Uses) (0.11) (0.34) (0.43)
Net Financing Sources/(Uses) (76.99) (0.34) (104.96)
Net Cash Position Changes (81.84) 18.19 (75.58)
Exchange Rate Changes & Others (0.74) (1.93) 2.68
Ending Cash Balance 156.94 239.52 112.45
*Starting 2008, Taiwan accounting rule requires company to expense
employee profit sharing
Summary of Cash Flow:
Cash generated from operating activities totaled NT$46.66 billion during the quarter, up from NT$24.52 billion in 2Q09 as a result of higher level of business activities, partially offset by NT$7.49 billion for 2008 employee profit sharing payment.
Net cash used in investing activities was NT$51.51 billion in 3Q09, reflecting the capital expenditures of NT$32.04 billion and investments in fixed income instruments of NT$14.83 billion.
Net cash used in financing activities was NT$76.99 billion during the quarter, as we paid NT$76.88 billion for cash dividends.
As a result, TSMC ended 3Q09 with a cash balance of NT$156.94 billion.
IV - 2. Operating and Free Cash Flows:
Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$46.66 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$14.62 billion in 3Q09, compared to NT$17.10 billion in 2Q09.
Please refer to the link for the index charts: http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf
V. CapEx & Capacity
V - 1. Capital Expenditures
(In US millions) 1Q09 2Q09 3Q09 YTD
TSMC 161 218 963 1342
XinTec and GUC 2 3 6 11
TSMC Shanghai & WaferTech 3 3 0 6
Other TSMC Subsidiaries 0 0 2 2
Total TSMC 166 224 971 1361
Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$971 million in 3Q09.
First quarter through third quarter 2009, total capital expenditures reached US$1.36 billion. Due to stronger demand for 40nm and 65nm technologies, TSMC 2009 capital expenditures are further raised and expected to be around US$2.7 billion.
V - 2. Capacity
2008 1Q09 2Q09 3Q09 4Q09 2009
Fab / (Wafer size) (A) (A) (A) (A) (F) (F)
Fab-2 (6") Note 1 1,056 274 280 283 283 1,121
Fab-3 (8") 1,100 286 289 292 283 1,150
Fab-5 (8") 650 162 149 144 144 599
Fab-6 (8") 1,082 295 284 287 287 1,154
Fab-8 (8") 1,076 275 271 265 255 1,066
Fab-12 (12") Note 2 840 218 219 199 243 879
Fab-14 (12") Note 2 818 238 238 239 243 958
WaferTech (8") 420 106 107 109 109 431
TSMC China (8") 453 128 134 135 135 531
TSMC total capacity (8"
equiv. Kpcs) 9,104 2,431 2,419 2,379 2,467 9,695
SSMC (8") 272 64 65 65 65 259
Total managed capacity (8"
equiv. Kpcs) 9,377 2,495 2,483 2,444 2,532 9,955
Note: 1. Figures represent number of 6" wafers. Conversion to
8"-equivalent wafers is obtained by dividing this number by 1.78
2. Figures represent number of 12" wafers. Conversion to
8"-equivalent wafers is obtained by multiplying this number by
2.25
Capacity:
Total managed capacity was 2,444K 8-inch equivalent wafers in the third quarter, decreased by 1.6% from 2,483K in 2Q09, mainly due to capacity migration to advanced nodes.
TSMC managed capacity in 4Q09 is expected to increase by 3.6% to reach 2,532K 8-inch equivalent wafers.
Total managed capacity in 2009 is expected to reach 9,955K 8-inch equivalent wafers, representing an increase of 6.2% from 9,377K 8-inch equivalent wafers in 2008, while capacity for 12-inch wafer fabs is expected to increase by 11% year-over-year, reaching 42% of total capacity.
VI. Recap of Recent Important Events & Announcements
-- TSMC Collaborates With Suppliers To Complete Taiwan's First Supply
Chain Carbon Inventory. (2009/09/21)
-- Fujitsu Microelectronics and TSMC To Collaborate On 28nm Process
Technology. (2009/08/27)
-- TSMC Has Become the First Foundry Not Only To Achieve 28nm Functional
64Mb SRAM Yield, But Also To Achieve It Across All Three 28nm Nodes.
(2009/8/24)
-- TSMC Adds High-K Metal Gate Low Power Process To 28nm Road Map. Risk
Production Is Expected In Q3 2010. (2009/08/24)
-- IDT And TSMC Enter Product Fabrication Agreement. (2009/08/06)
-- TSMC Extends Design Methodology Leadership To 28nm With Reference Flow
10.0. (2009/07/22)
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1)
September 30, 2009 June 30, 2009
(unaudited) (audited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $4,874 $156,935 29.0 $239,517 40.8
Investments in Marketable
Financial Instruments 726 23,384 4.3 7,252 1.2
Accounts Receivable - Trade 1,114 35,881 6.6 33,384 5.7
Inventories, Net 596 19,176 3.5 18,974 3.2
Other Current Assets 275 8,865 1.7 10,292 1.8
Total Current Assets 7,585 244,241 45.1 309,419 52.7
Long-Term Investments 1,197 38,553 7.1 32,498 5.5
Properties, Plant and
Equipment 28,318 911,844 168.3 881,897 150.1
Less: Accumulated
Depreciation (20,963) (675,028) (124.6) (656,826) (111.8)
Properties, Plant and
Equipment, Net 7,355 236,816 43.7 225,071 38.3
Other Assets 692 22,287 4.1 20,555 3.5
Total Assets $16,829 $541,897 100.0 $587,543 100.0
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts Payables $330 $10,633 2.0 $10,105 1.7
Payables to Contractors and
Equipment Suppliers 486 15,666 2.9 15,853 2.7
Accrued Expenses and Other
Current Liabilities 882 28,401 5.2 103,363 17.6
Current Portion of Bonds
Payable and Long-Term
Debts 10 309 0.1 309 0.1
Total Current Liabilities 1,708 55,009 10.2 129,630 22.1
Bonds Payable 140 4,500 0.8 4,500 0.8
Other Long-Term Liabilities 489 15,761 2.9 16,060 2.7
Total Liabilities 2,337 75,270 13.9 150,190 25.6
Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock at Par Value 8,044 259,007 47.8 258,964 44.1
Capital Surplus 1,722 55,440 10.2 55,331 9.4
Legal Capital Reserve (2) 2,401 77,317 14.3 77,317 13.2
Special Capital Reserve (2) -- -- -- -- --
Unappropriated Earnings (2) 2,233 71,899 13.3 41,348 7.0
Treasury Stock -- -- -- -- --
Others (24) (778) (0.2) 801 0.1
Total Equity
Attributable to
Shareholders of the
Parent 14,376 462,885 85.4 433,761 73.8
Minority Interests 116 3,742 0.7 3,592 0.6
Total Shareholders'
Equity 14,492 466,627 86.1 437,353 74.4
Total Liabilities &
Shareholders' Equity $16,829 $541,897 100.0 $587,543 100.0
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the rate of NT$32.2 as of September 30, 2009.
(2) Certain prior period balances have been reclassified to conform to
the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars(USD)) (1)
(Continued)
September 30, 2008
(unaudited) QoQ YoY
ASSETS NTD % Amount % Amount %
Current Assets
Cash and Cash
Equivalents $112,446 20.4 ($82,582) (34.5) $44,489 39.6
Investments in
Marketable
Financial
Instruments 45,724 8.3 16,132 222.4 (22,340) (48.9)
Accounts Receivable
- Trade 45,333 8.2 2,497 7.5 (9,452) (20.9)
Inventories, Net 21,817 4.0 202 1.1 (2,641) (12.1)
Other Current
Assets 7,029 1.3 (1,427) (13.9) 1,836 26.1
Total Current
Assets 232,349 42.2 (65,178) (21.1) 11,892 5.1
Long-Term Investments 41,874 7.6 6,055 18.6 (3,321) (7.9)
Properties, Plant and
Equipment 849,818 154.5 29,947 3.4 62,026 7.3
Less: Accumulated
Depreciation (597,523) (108.6) (18,202) 2.8 (77,505) 13.0
Properties,
Plant and
Equipment, Net 252,295 45.9 11,745 5.2 (15,479) (6.1)
Other Assets 23,481 4.3 1,732 8.4 (1,194) (5.1)
Total Assets $549,999 100.0 ($45,646) (7.8) ($8,102) (1.5)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payables $9,671 1.8 $528 5.2 $962 10.0
Payables to
Contractors and
Equipment
Suppliers 8,082 1.4 (187) (1.2) 7,584 93.8
Accrued Expenses
and Other Current
Liabilities 36,124 6.6 (74,962) (72.5) (7,723) (21.4)
Current Portion of
Bonds Payable and
Long-Term Debts 8,258 1.5 -- (0.1) (7,949) (96.3)
Total Current
Liabilities 62,135 11.3 (74,621) (57.6) (7,126) (11.5)
Bonds Payable 4,500 0.8 -- -- -- --
Other Long-Term
Liabilities 17,541 3.2 (299) (1.9) (1,780) (10.1)
Total
Liabilities 84,176 15.3 (74,920) (49.9) (8,906) (10.6)
Shareholders' Equity
Attributable to
Shareholders of the
Parent
Capital Stock at
Par Value 259,042 47.1 43 0.0 (35) (0.0)
Capital Surplus 50,463 9.2 109 0.2 4,977 9.9
Legal Capital
Reserve (2) 67,324 12.2 -- -- 9,993 14.8
Special Capital
Reserve (2) 392 0.1 -- -- (392) (100.0)
Unappropriated
Earnings (2) 103,063 18.7 30,551 73.9 (31,164) (30.2)
Treasury Stock (16,500) (3.0) -- -- 16,500 (100.0)
Others (1,708) (0.3) (1,579) (197.1) 930 (54.5)
Total Equity
Attributable to
Shareholders of
the Parent 462,076 84.0 29,124 6.7 809 0.2
Minority Interests 3,747 0.7 150 4.2 (5) (0.2)
Total
Shareholders'
Equity 465,823 84.7 29,274 6.7 804 0.2
Total Liabilities &
Shareholders' Equity $549,999 100.0 ($45,646) (7.8) ($8,102) (1.5)
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the rate of NT$32.2 as of September 30, 2009.
(2) Certain prior period balances have been reclassified to conform to
the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended September 30, 2009, June 30, 2009,
September 30, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
3Q 2009 2Q 2009
USD NTD % NTD %
Net Sales $2,742 $89,936 100.0 $74,212 100.0
Cost of Sales (1,435) (47,078) (52.3) (39,916) (53.8)
Gross Profit 1,307 42,858 47.7 34,296 46.2
Operating Expenses
Research and Development
Expenses (189) (6,202) (6.9) (5,096) (6.9)
General and Administrative
Expenses (108) (3,541) (3.9) (2,881) (3.8)
Sales and Marketing Expenses (35) (1,131) (1.3) (1,192) (1.6)
Total Operating Expenses (332) (10,874) (12.1) (9,169) (12.3)
Income from Operations 975 31,984 35.6 25,127 33.9
Non-Operating Income, Net 16 519 0.5 1,156 1.6
Investment Gains 14 454 0.5 106 0.1
Income before Income Tax 1,005 32,957 36.6 26,389 35.6
Income Tax Expenses (70) (2,285) (2.5) (1,943) (2.7)
Net Income 935 30,672 34.1 24,446 32.9
Minority Interests (3) (121) (0.1) (4) --
Net Income Attributable to
Shareholders of the Parent 932 30,551 34.0 24,442 32.9
Earnings per Share - Diluted $0.04 $1.18 -- $0.94 --
Earnings per ADR - Diluted (2) $0.18 $5.88 -- $4.71 --
Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,984 -- 25,944 --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD32.797 for the third
quarter of 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,070M
shares for 3Q08 after the retroactive adjustments for stock dividends
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended September 30, 2009, June 30, 2009,
September 30, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding) (Continued)
3Q 2008 QoQ YoY
NTD % Amount % Amount %
Net Sales $92,979 100.0 $15,724 21.2 ($3,043) (3.3)
Cost of Sales (49,885) (53.7) (7,162) 17.9 2,807 (5.6)
Gross Profit 43,094 46.3 8,562 25.0 (236) (0.5)
Operating Expenses
Research and
Development Expenses (5,981) (6.4) (1,106) 21.7 (221) 3.7
General and
Administrative
Expenses (2,979) (3.2) (660) 22.9 (562) 18.9
Sales and Marketing
Expenses (1,217) (1.3) 61 (5.1) 86 (7.0)
Total Operating Expenses (10,177) (10.9) (1,705) 18.6 (697) 6.9
Income from Operations 32,917 35.4 6,857 27.3 (933) (2.8)
Non-Operating Income, Net 1,328 1.4 (637) (55.1) (809) (60.9)
Investment Gains 185 0.2 348 328.8 269 144.5
Income before Income Tax 34,430 37.0 6,568 24.9 (1,473) (4.3)
Income Tax Expenses (3,658) (3.9) (342) 17.6 1,373 (37.5)
Net Income 30,772 33.1 6,226 25.5 (100) (0.3)
Minority Interests (198) (0.2) (117) 3055.4 77 (38.8)
Net Income Attributable
to Shareholders of
the Parent 30,574 32.9 6,109 25.0 (23) (0.1)
Earnings per Share -
Diluted $1.17 -- $0.24 24.8 $0.01 0.3
Earnings per ADR -
Diluted (2) $5.86 -- $1.17 24.8 $0.02 0.3
Weighted Average
Outstanding Shares -
Diluted ('M) (3) 26,070 -- -- -- -- --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD32.797 for the third
quarter of 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,070M
shares for 3Q08 after the retroactive adjustments for stock dividends
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Nine Months Ended September 30, 2009 and 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
For the Nine Months Ended September 30
2009 2008
USD NTD % NTD %
Net Sales $6,148 $203,648 100.0 $268,595 100.0
Cost of Sales (3,593) (119,014) (58.4) (147,041) (54.7)
Gross Profit 2,555 84,634 41.6 121,554 45.3
Operating Expenses
Research and Development
Expenses (454) (15,026) (7.4) (16,655) (6.2)
General and Administrative
Expenses (242) (8,017) (4.0) (8,811) (3.3)
Sales and Marketing Expenses (98) (3,271) (1.6) (3,674) (1.4)
Total Operating Expenses (794) (26,314) (13.0) (29,140) (10.9)
Income from Operations 1,761 58,320 28.6 92,414 34.4
Non-Operating Income, Net 61 2,028 1.0 4,923 1.8
Investment Gains (Losses) (8) (253) (0.1) 1,042 0.4
Income before Income Tax 1,814 60,095 29.5 98,379 36.6
Income Tax Expenses (105) (3,489) (1.7) (10,497) (3.9)
Net Income 1,709 56,606 27.8 87,882 32.7
Minority Interests (2) (54) -- (395) (0.1)
Net Income Attributable to
Shareholders of the Parent 1,707 56,552 27.8 87,487 32.6
Earnings per Share - Diluted $0.07 $2.18 -- $3.33 --
Earnings per ADR - Diluted (2) $0.33 $10.88 -- $16.64 --
Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,981 -- 26,290 --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD 33.122 for the nine months ended
September 30, 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,290M
shares for the nine months ended September 30, 2008 after the
retroactive adjustment for stock dividends.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Nine Months Ended September 30, 2009 and 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding) (Continued)
For the Nine Months Ended September 30
YoY
Amount %
Net Sales ($64,947) (24.2)
Cost of Sales 28,027 (19.1)
Gross Profit (36,920) (30.4)
Operating Expenses
Research and Development Expenses 1,629 (9.8)
General and Administrative Expenses 794 (9.0)
Sales and Marketing Expenses 403 (11.0)
Total Operating Expenses 2,826 (9.7)
Income from Operations (34,094) (36.9)
Non-Operating Income, Net (2,895) (58.8)
Investment Gains (Losses) (1,295) (124.3)
Income before Income Tax (38,284) (38.9)
Income Tax Expenses 7,008 (66.8)
Net Income (31,276) (35.6)
Minority Interests 341 (86.3)
Net Income Attributable to
Shareholders of the Parent (30,935) (35.4)
Earnings per Share - Diluted ($1.15) (34.6)
Earnings per ADR - Diluted (2) ($5.76) (34.6)
Weighted Average Outstanding Shares -
Diluted ('M) (3) -- --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD 33.122 for the nine months ended
September 30, 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,290M
shares for the nine months ended September 30, 2008 after the
retroactive adjustment for stock dividends.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Six Months Ended September 30, 2009 and for the Three Months
Ended September 30, 2009, June 30, 2009, and September 30, 2008 (Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1)
Nine Months 2009 3Q 2009 2Q 2009 3Q 2008
(unaudited) (unaudited)(unaudited)(unaudited)
USD NTD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $1,707 $56,552 $30,551 $24,442 $30,574
Net Income
Attributable to
Minority Interest 2 54 121 4 198
Depreciation &
Amortization 1,828 60,537 20,001 20,053 20,686
Deferred Income Tax (34) (1,122) (426) 697 410
Equity in Losses
(Earnings) of Equity
Method Investees,
Net 8 253 (454) (106) (185)
Changes in Working
Capital & Others (553) (18,307) (3,138) (20,566) 4,220
Net Cash Provided by
Operating Activities 2,958 97,967 46,655 24,524 55,903
Cash Flows from Investing
Activities:
Acquisitions of:
Marketable
Financial
Instruments (937) (31,046) (20,827) (968) (40,201)
Investments
Accounted for
Using Equity
Method (1) (32) (32) -- (55)
Property, Plant
and Equipment (1,361) (45,070) (32,038) (7,415) (10,378)
Financial Assets
Carried at Cost (8) (271) (139) (48) (87)
Proceeds from
Disposal or maturity of:
Marketable
Financial
Instruments 833 27,591 1,886 2,651 22,126
Property, Plant
and Equipment -- 7 2 3 140
Financial Assets
Carried at Cost 3 94 19 75 --
Others (20) (640) (381) (291) 1,930
Net Cash Used In
Investing Activities (1,491) (49,367) (51,510) (5,993) (26,525)
Cash Flows from Financing
Activities:
Decrease in Guarantee
Deposits (10) (327) (77) (86) (83)
Proceeds from
Exercise of Stock
Options 6 191 162 14 51
Bonus Paid to
Directors and
Supervisors -- -- -- -- (177)
Repayment of Long-
Term Bonds Payable (242) (8,000) -- -- --
Cash Dividends Paid
for Common Stock (2,321) (76,876) (76,876) -- (76,779)
Repurchase of
Treasury Stock -- -- -- -- (23,812)
Cash Bonus Paid to
Employees -- -- -- -- (3,940)
Others (5) (182) (191) (265) (222)
Net Cash Used in
Financing Activities (2,572) (85,194) (76,982) (337) (104,962)
Net Increase (Decrease)
in Cash and Cash
Equivalents (1,105) (36,594) (81,837) 18,194 (75,584)
Effect of Exchange Rate
Changes and Others (33) (1,085) (745) (1,939) 2,684
Cash and Cash Equivalents
at Beginning of Period 5,876 194,614 239,517 223,262 185,346
Cash and Cash Equivalents
at End of Period $4,738 $156,935 $156,935 $239,517 $112,446
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD33.122 for the nine months ended
September 30, 2009.
Safe Harbor Notice:
The statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking statements are subject to significant risks and uncertainties and are based on TSMC's current expectations. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC's foundry manufacturing capacity in particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to continue to place the same level of orders with us; TSMC's ability to remain a technological leader in the semiconductor industry; TSMC's ability to manage its capacity; TSMC's ability to obtain, preserve and defend its intellectual property rights; natural disasters and other unexpected events which may disrupt production; and exchange rate fluctuations. Additional information as to these and other risk factors that may cause TSMC's actual results to differ materially from TSMC's forward-looking statements may be found in TSMC's Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission (the "SEC") on April 17, 2009, and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT
Elizabeth Sun
Investor Relations Division
TSMC
Email: invest@tsmc.com
Tel: +886-3-568-2085
Web site:
http://www.tsmc.com/
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf/