TSMC Annual Report > 2016 > Financial Highlights and Analysis > Financial Highlights

Financial Highlights

Condensed Balance Sheet

Condensed Balance Sheet from 2012 to 2016 (Consolidated)(Note 1)

Unit: NT$ thousands

Item

2012

2013

2014
(Adjusted)

2015

2016

Current Assets

250,325,436

358,486,654

626,565,639

746,743,991

817,729,126

Long-term Investments (Note 2)

65,717,240

89,183,810

30,056,279

34,993,583

46,153,916

Property, Plant and Equipment

617,562,188

792,665,913

818,198,801

853,470,392

997,777,687

Intangible Assets

10,959,569

11,490,383

13,531,510

14,065,880

14,614,846

Other Assets (Note 3)

16,790,075

11,228,217

6,696,857

8,244,452

10,179,727

Total Assets

961,354,508

1,263,054,977

1,495,049,086

1,657,518,298

1,886,455,302

Current Liabilities

 

 

 

 

 

Before Distribution

148,473,947

189,777,934

201,013,629

212,228,594

318,239,273

After Distribution

226,247,254

267,563,785

317,697,110

367,810,877

(Note 4)

Noncurrent Liabilities

89,786,655

225,501,958

247,707,125

222,655,225

178,164,903

Total Liabilities

 

 

 

 

 

Before Distribution

238,260,602

415,279,892

448,720,754

434,883,819

496,404,176

After Distribution

316,033,909

493,065,743

565,404,235

590,466,102

(Note 4)

Equity Attributable to Shareholders of the Parent

 

 

 

 

 

Capital Stock

259,244,357

259,286,171

259,296,624

259,303,805

259,303,805

Capital Surplus

55,675,340

55,858,626

55,989,922

56,300,215

56,272,304

Retained Earnings

 

 

 

 

 

Before Distribution

408,411,468

518,193,152

705,165,274

894,293,586

1,072,008,169

After Distribution

330,638,161

440,407,301

588,481,793

738,711,303

(Note 4)

Others

(2,780,485)

14,170,306

25,749,291

11,774,113

1,663,983

Equity Attributable to Shareholders of the Parent

 

 

 

 

 

Before Distribution

720,550,680

847,508,255

1,046,201,111

1,221,671,719

1,389,248,261

After Distribution

642,777,373

769,722,404

929,517,630

1,066,089,436

(Note 4)

Noncontrolling Interests

2,543,226

266,830

127,221

962,760

802,865

Total Equity

 

 

 

 

 

Before Distribution

723,093,906

847,775,085

1,046,328,332

1,222,634,479

1,390,051,126

After Distribution

645,320,599

769,989,234

929,644,851

1,067,052,196

(Note 4)

Note 1:

2012-2013 financial statements were prepared in accordance with 2010 Taiwan-IFRSs version, 2014-2016 financial statements were prepared in accordance with 2013 Taiwan-IFRSs version.
Financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments include a decrease of NT$84,759 thousand in total assets, a decrease of NT$737,344 thousand in total liabilities before distribution and an increase of NT$652,585 thousand in total equity before distribution.

Note 2:

Long-term investments consist of noncurrent available-for-sale financial assets, held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method.

Note 3:

Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets.

Note 4:

Pending for shareholders' approval.

Condensed Balance Sheet from 2012 to 2016 (Unconsolidated)(Note 1)

Unit: NT$ thousands

Item

2012

2013

2014
(Adjusted)

2015

2016

Current Assets

205,819,614

257,623,763

370,949,497

426,913,080

443,781,164

Long-term Investments (Note 2)

139,634,200

165,545,159

242,395,596

326,330,737

397,290,976

Property, Plant and Equipment

586,636,036

770,443,494

796,684,361

831,784,912

979,401,337

Intangible Assets

6,449,837

7,069,456

8,996,810

9,391,418

10,047,991

Other Assets (Note 3)

13,597,966

7,897,131

3,935,389

5,265,368

6,816,676

Total Assets

952,137,653

1,208,579,003

1,422,961,653

1,599,685,515

1,837,338,144

Current Liabilities

 

 

 

 

 

Before Distribution

144,528,616

187,195,744

178,261,092

194,299,278

308,177,214

After Distribution

222,301,923

264,981,595

294,944,573

349,881,561

(Note 4)

Noncurrent Liabilities

87,058,357

173,875,004

198,499,450

183,714,518

139,912,669

Total Liabilities

 

 

 

 

 

Before Distribution

231,586,973

361,070,748

376,760,542

378,013,796

448,089,883

After Distribution

309,360,280

438,856,599

493,444,023

533,596,079

(Note 4)

Equity

 

 

 

 

 

Capital Stock

259,244,357

259,286,171

259,296,624

259,303,805

259,303,805

Capital Surplus

55,675,340

55,858,626

55,989,922

56,300,215

56,272,304

Retained Earnings

 

 

 

 

 

Before Distribution

408,411,468

518,193,152

705,165,274

894,293,586

1,072,008,169

After Distribution

330,638,161

440,407,301

588,481,793

738,711,303

(Note 4)

Others

(2,780,485)

14,170,306

25,749,291

11,774,113

1,663,983

Total Equity

 

 

 

 

 

Before Distribution

720,550,680

847,508,255

1,046,201,111

1,221,671,719

1,389,248,261

After Distribution

642,777,373

769,722,404

929,517,630

1,066,089,436

(Note 4)

Note 1:

2012-2013 financial statements were prepared in accordance with 2010 Taiwan-IFRSs version, 2014-2016 financial statements were prepared in accordance with 2013 Taiwan-IFRSs version.
Financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments include a decrease of NT$82,771 thousand in total assets, a decrease of NT$735,381 thousand in total liabilities before distribution and an increase of NT$652,610 thousand in total equity before distribution.

Note 2:

Long-term investments consist of held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method.

Note 3:

Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets.

Note 4:

Pending for shareholders' approval.

Condensed Statement of Comprehensive Income

Condensed Statement of Comprehensive Income from 2012 to 2016 (Consolidated) (Note 1)

Unit: NT$ thousands (Except EPS:NT$)

Item

2012

2013

2014
(Adjusted)

2015

2016

Net Revenue

506,745,234

597,024,197

762,806,465

843,497,368

947,938,344

Gross Profit

244,137,107

280,945,507

377,722,016

410,394,893

474,832,098

Income from Operations

181,176,868

209,429,363

295,870,309

320,047,775

377,957,778

Non-operating Income and Expenses

499,588

6,057,759

6,208,048

30,381,136

8,001,602

Income before Income Tax

181,676,456

215,487,122

302,078,357

350,428,911

385,959,380

Net Income

166,123,802

188,018,937

263,763,958

306,556,167

334,338,236

Other Comprehensive Income for the Year, Net of Income Tax

4,252,632

16,352,248

11,805,021

(14,714,182)

(11,067,189)

Total Comprehensive Income for the Year

170,376,434

204,371,185

275,568,979

291,841,985

323,271,047

Net Income (Loss) Attributable to:

 

 

 

 

 

Shareholders of the Parent

166,318,286

188,146,790

263,881,771

306,573,837

334,247,180

Noncontrolling Interests

(194,484)

(127,853)

(117,813)

(17,670)

91,056

Total Comprehensive Income (Loss) Attributable to:

 

 

 

 

 

Shareholders of the Parent

170,521,543

204,505,782

275,670,991

291,867,757

323,186,736

Noncontrolling Interests

(145,109)

(134,597)

(102,012)

(25,772)

84,311

Basic Earnings Per Share (Note 2)

6.42

7.26

10.18

11.82

12.89

Note 1:

2012-2013 financial statements were prepared in accordance with 2010 Taiwan-IFRSs version, 2014-2016 financial statements were prepared in accordance with 2013 Taiwan-IFRSs version.
Financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments include a decrease of NT$12,359 thousand in gross profit, a decrease of NT$19,984 thousand in income from operations, a decrease of NT$16,911 thousand in net income and a decrease of NT$46,054 thousand in total comprehensive income for the year.

Note 2:

Based on weighted average shares outstanding in each year.

Condensed Statement of Comprehensive Income from 2012 to 2016 (Unconsolidated) (Note 1)

Unit: NT$ thousands (Except EPS:NT$)

Item

2012

2013

2014
(Adjusted)

2015

2016

Net Revenue

500,369,525

591,087,600

757,152,389

837,046,888

936,387,291

Gross Profit

234,850,311

271,644,860

366,899,120

397,708,840

461,808,296

Income from Operations

176,820,141

204,653,892

290,640,302

313,408,698

369,730,533

Non-operating Income and Expenses

6,932,246

11,062,658

10,363,515

36,579,970

15,458,427

Income before Income Tax

183,752,387

215,716,550

301,003,817

349,988,668

385,188,960

Net Income

166,318,286

188,146,790

263,881,771

306,573,837

334,247,180

Other Comprehensive Income for the Year, Net of Income Tax

4,203,257

16,358,992

11,789,220

(14,706,080)

(11,060,444)

Total Comprehensive Income for the Year

170,521,543

204,505,782

275,670,991

291,867,757

323,186,736

Basic Earnings Per Share (Note 2)

6.42

7.26

10.18

11.82

12.89

Note 1:

2012-2013 financial statements were prepared in accordance with 2010 Taiwan-IFRSs version, 2014-2016 financial statements were prepared in accordance with 2013 Taiwan-IFRSs version.
Financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments include a decrease of NT$12,583 thousand in gross profit, a decrease of NT$19,356 thousand in income from operations, a decrease of NT$17,023 thousand in net income and a decrease of NT$46,150 thousand in total comprehensive income for the year.

Note 2:

Based on weighted average shares outstanding in each year.

Financial Analysis

Financial Analysis from 2012 to 2016 (Consolidated) (Note 1)

 

2012

2013

2014
(Adjusted)

2015

2016

Capital Structure Analysis

Debts Ratio (%)

24.78

32.88

30.01

26.24

26.31

Long-term Fund to Property, Plant and Equipment (%)

131.63

135.40

158.16

169.34

157.17

Liquidity Analysis

Current Ratio (%)

168.60

188.90

311.70

351.86

256.95

Quick Ratio (%)

142.39

168.57

278.03

319.58

241.34

Times Interest Earned (Times)

177.92

82.41

94.34

110.84

117.74

Operating Performance Analysis

Average Collection Turnover (Times)

9.64

9.11

8.12

8.37

8.78

Days Sales Outstanding

37.86

40.06

44.95

43.61

41.57

Average Inventory Turnover (Times)

8.38

8.39

7.42

6.49

8.18

Average Inventory Turnover Days

43.56

43.49

49.19

56.24

44.62

Average Payment Turnover (Times)

19.38

20.01

19.39

20.10

20.11

Property, Plant and Equipment Turnover (Times)

0.91

0.85

0.95

1.01

1.02

Total Assets Turnover (Times)

0.58

0.54

0.55

0.54

0.53

Profitability Analysis

Return on Total Assets (%)

19.19

17.11

19.33

19.62

19.03

Return on Equity attributable to Shareholders of
the Parent (%)

24.68

24.00

27.86

27.04

25.60

Operating Income to Paid-in Capital Ratio (%)

69.89

80.77

114.10

123.43

145.76

Pre-tax Income to Paid-in Capital Ratio (%)

70.08

83.11

116.50

135.14

148.84

Net Margin (%)

32.78

31.49

34.58

36.34

35.27

Basic Earnings Per Share (NT$)

6.42

7.26

10.18

11.82

12.89

Diluted Earnings Per Share (NT$)

6.41

7.26

10.18

11.82

12.89

Cash flow

Cash Flow Ratio (%)

191.93

183.05

209.70

249.67

169.63

Cash Flow Adequacy Ratio (%)

94.71

88.35

92.15

103.82

108.57

Cash Flow Reinvestment Ratio (%)

11.46

12.16

13.04

13.76

11.51

Leverage

Operating Leverage

2.32

2.40

2.15

2.26

2.15

Financial Leverage

1.01

1.01

1.01

1.01

1.01

Industry Specific Key Performance Indicator

Billing Utilization Rate (%) (Note 3)

91

91

97

93

92

Advanced Technologies (28-nanometer and below)
Percentage of Wafer Sales (%)

12

30

42

48

55

Sales Growth (%)

18.7

17.82

27.77

10.58

12.38

Net Income Growth (%)

23.9

13.12

40.25

16.18

9.03

Analysis of deviation of 2016 vs. 2015 over 20%:

  • Current ratio (%) decreased by 27% mainly due to increase in payables to contractors and equipment suppliers and short-term loans.
  • Quick ratio (%) decreased by 24% mainly due to increase in payables to contractors and equipment suppliers and short-term loans.
  • Average inventory turnover (Times) increased by 26% and average inventory turnover days decreased by 21% mainly due to strong shipments of leading edge wafers during the year and improving cycle time.
  • Cash flow ratio (%) decreased by 32% mainly due to increase in payables to contractors and equipment suppliers and short-term loans.

Note 1:

Before 2012, financial statements were prepared in accordance with R.O.C GAAP. 2012-2013 financial statements were prepared in accordance with 2010 Taiwan-IFRSs version. 2014-2016 financial statements were prepared in accordance with 2013 Taiwan-IFRSs version.

Note 2:

Capacity includes wafers committed by Vanguard and SSMC.

* Glossary

1. Capital Structure Analysis

(1)

Debt Ratio = Total Liabilities / Total Assets

(2)

Long-term Fund to Property, Plant and Equipment Ratio = (Shareholders’ Equity + Noncurrent Liabilities) / Net Property, Plant and Equipment

2. Liquidity Analysis

(1)

Current Ratio = Current Assets / Current Liabilities

(2)

Quick Ratio = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities

(3)

Times Interest Earned = Earnings before Interest and Taxes / Interest Expenses

3. Operating Performance Analysis

(1)

Average Collection Turnover = Net Sales / Average Trade Receivables

(2)

Days Sales Outstanding = 365 / Average Collection Turnover

(3)

Average Inventory Turnover = Cost of Sales / Average Inventory

(4)

Average Inventory Turnover Days = 365 / Average Inventory Turnover

(5)

Average Payment Turnover = Cost of Sales / Average Trade Payables

(6)

Property, Plant and Equipment Turnover = Net Sales / Average Net Property, Plant and Equipment

(7)

Total Assets Turnover = Net Sales / Average Total Assets

4. Profitability Analysis

(1)

Return on Total Assets = (Net Income + Interest Expenses * (1 - Effective Tax Rate)) / Average Total Assets

(2)

Return on Equity Attributable to Shareholders of the Parent = Net Income Attributable to Shareholders of the Parent / Average Equity Attributable to Shareholders of the Parent

(3)

Operating Income to Paid-in Capital Ratio= Operating Income / Paid-in Capital

(4)

Pre-tax Income to Paid-in Capital Ratio = Income before Tax / Paid-in Capital

(5)

Net Margin = Net Income / Net Sales

(6)

Earnings Per Share = (Net Income Attributable to Shareholders of the Parent - Preferred Stock Dividend) / Weighted Average Number of Shares Outstanding

5. Cash Flow

(1)

Cash Flow Ratio = Net Cash Provided by Operating Activities / Current Liabilities

(2)

Cash Flow Adequacy Ratio = Five-year Sum of Cash from Operations / Five-year Sum of Capital Expenditures, Inventory Additions, and Cash Dividend)

(3)

Cash Flow Reinvestment Ratio = (Cash Provided by Operating Activities - Cash Dividends)/ (Gross Property, Plant and Equipment + Long-term Investments + Other Noncurrent Assets + Working Capital)

6. Leverage

(1)

Operating Leverage = (Net Sales - Variable Cost) / Income from Operations

(2)

Financial Leverage = Income from Operations / (Income from Operations - Interest Expenses)

Financial Analysis from 2012 to 2016 (Unconsolidated) (Note)

 

2012

2013

2014
(Adjusted)

2015

2016

Capital Structure Analysis

Debts Ratio (%)

24.32.

29.88

26.48

23.63

24.39

Long-term Fund to Property, Plant and Equipment (%)

137.67

132.57

156.24

168.96

156.13

Liquidity Analysis

Current Ratio (%)

142.41

137.62

208.09

219.72

144.00

Quick Ratio (%)

117.49

118.35

171.82

186.00

128.65

Times Interest Earned (Times)

195.42

104.10

120.82

144.41

146.73

Operating Performance Analysis

Average Collection Turnover (Times)

9.87

9.26

8.29

8.58

8.89

Days Sales Outstanding

36.98

39.40

44.02

42.54

41.07

Average Inventory Turnover (Times)

9.13

9.06

7.90

6.87

8.56

Average Inventory Turnover Days

39.97

40.30

46.18

53.11

42.63

Average Payment Turnover (Times)

18.22

18.55

18.64

19.73

19.04

Property, Plant and Equipment Turnover (Times)

0.96

0.87

0.97

1.03

1.03

Total Assets Turnover (Times)

0.58

0.55

0.58

0.55

0.54

Profitability Analysis

Return on Total Assets (%)

19.45

17.58

20.22

20.42

19.58

Return on Equity (%)

24.68

24.00

27.86

27.04

25.60

Operating Income to Paid-in Capital Ratio (%)

68.21

78.93

112.09

120.87

142.59

Pre-tax Income to Paid-in Capital Ratio (%)

70.88

83.20

116.08

134.97

148.55

Net Margin (%)

33.24

31.83

34.85

36.63

35.70

Basic Earnings Per Share (NT$)

6.42

7.26

10.18

11.82

12.89

Diluted Earnings Per Share (NT$)

6.41

7.26

10.18

11.82

12.89

Cash flow

 

Cash Flow Ratio (%)

189.88

179.11

230.29

264.94

172.81

Cash Flow Adequacy Ratio (%)

93.23

86.78

90.72

102.35

107.06

Cash Flow Reinvestment Ratio (%)

11.36

12.32

13.30

13.85

11.74

Leverage

Operating Leverage

2.37

2.46

2.19

2.31

2.19

Financial Leverage

1.01

1.01

1.01

1.01

1.01

Analysis of deviation of 2016 vs. 2015 over 20%:

  • Current ratio (%) decreased by 34% mainly due to increase in payables to contractors and equipment suppliers and short-term loans.
  • Quick ratio (%) decreased by 31% mainly due to increase in payables to contractors and equipment suppliers and short-term loans.
  • Average inventory turnover (Times) increased by 25% and average inventory turnover days decreased by 20% mainly due to strong shipments of leading edge wafers during the year and improving cycle time.
  • Cash flow ratio (%) decreased by 35% mainly due to increase in payables to contractors and equipment suppliers and short-term loans.

Note:

Before 2012, financial statements were prepared in accordance with R.O.C GAAP. 2012-2013 financial statements were prepared in accordance with 2010 Taiwan-IFRSs version. 2014-2016 financial statements were prepared in accordance with 2013 Taiwan-IFRSs version.

* Glossary

1. Capital Structure Analysis

(1)

Debt Ratio = Total Liabilities / Total Assets

(2)

Long-term Fund to Property, Plant and Equipment Ratio = (Shareholders’ Equity + Noncurrent Liabilities) / Net Property, Plant and Equipment

2. Liquidity Analysis

(1)

Current Ratio = Current Assets / Current Liabilities

(2)

Quick Ratio = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities

(3)

Times Interest Earned = Earnings before Interest and Taxes / Interest Expenses

3. Operating Performance Analysis

(1)

Average Collection Turnover = Net Sales / Average Trade Receivables

(2)

Days Sales Outstanding = 365 / Average Collection Turnover

(3)

Average Inventory Turnover = Cost of Sales / Average Inventory

(4)

Average Inventory Turnover Days = 365 / Average Inventory Turnover

(5)

Average Payment Turnover = Cost of Sales / Average Trade Payables

(6)

Property, Plant and Equipment Turnover = Net Sales / Average Net Property, Plant and Equipment

(7)

Total Assets Turnover = Net Sales / Average Total Assets

4. Profitability Analysis

(1)

Return on Total Assets = (Net Income + Interest Expenses * (1 - Effective Tax Rate))/ Average Total Assets

(2)

Return on Equity = Net Income / Average Shareholders’ Equity

(3)

Operating Income to Paid-in Capital Ratio= Operating Income / Paid-in Capital

(4)

Pre-tax Income to Paid-in Capital Ratio = Income before Tax / Paid-in Capital

(5)

Net Margin = Net Income / Net Sales

(6)

Earnings Per Share = (Net Income - Preferred Stock Dividend) /Weighted Average Number of Shares Outstanding

5. Cash Flow

(1)

Cash Flow Ratio = Net Cash Provided by Operating Activities / Current Liabilities

(2)

Cash Flow Adequacy Ratio = Five-year Sum of Cash from Operations / Five-year Sum of Capital Expenditures, Inventory Additions, and Cash Dividend)

(3)

Cash Flow Reinvestment Ratio = (Cash Provided by Operating Activities - Cash Dividends)/ (Gross Property, Plant and Equipment + Long-term Investments + Other Noncurrent Assets + Working Capital)

6. Leverage

(1)

Operating Leverage = (Net Sales - Variable Cost) / Income from Operations

(2)

Financial Leverage = Income from Operations / (Income from Operations - Interest Expenses)

Auditors' Opinions from 2012 to 2016

Year

CPA

Audit Opinion

2012

Hung-Peng Lin, Shu-Chieh Huang

An Unqualified Opinion

2013

Yih-Hsin Kao, Hung-Wen Huang

An Unqualified Opinion

2014

Yih-Hsin Kao, Hung-Wen Huang

An Unqualified Opinion

2015

Yih-Hsin Kao, Hung-Wen Huang

An Unqualified Opinion

2016

Yih-Hsin Kao, Yu-Feng Huang

An Unmodified Opinion (Note)

Note:

Starting in 2016, the new auditing standard of the Republic of China requires “An Unqualified Opinion” be replaced by “An Unmodified Opinion”.

Deloitte & Touche
12F, No. 156, Sec. 3, Min-Sheng E. Rd., Taipei, Taiwan, R.O.C.
Tel: 886-2-2545-9988

Audit Committee’s Review Report

The Board of Directors has prepared the Company's 2016 Business Report, Financial Statements, and proposal for allocation of earnings. The CPA firm of Deloitte & Touche was retained to audit TSMC's Financial Statements and has issued an audit report relating to the Financial Statements. The Business Report, Financial Statements, and earnings allocation proposal have been reviewed and determined to be correct and accurate by the Audit Committee members of Taiwan Semiconductor Manufacturing Company Limited. According to relevant requirements of the Securities and Exchange Act and the Company Law, we hereby submit this report.

Taiwan Semiconductor Manufacturing Company Limited

Chairman of the Audit Committee: Sir Peter Leahy Bonfield

The signature of Sir Peter Leahy Bonfield (image)

February 14, 2017

Financial Difficulties

The Company should disclose the financial impact to the Company if the Company and its affiliated companies have incurred any financial or cash flow difficulties in 2016 and as of the date of this Annual Report: None

Consolidated Financial Statements and Independent Auditors’ Report along with Parent Company Only Financial Statements and Independent Auditors’ Report

Please refer to Annual Report , Financial Statements.