TSMC believes that good financial performance is key to corporate sustainability. As financial performance is mainly determined by revenue growth and consistent improvement in profitability, we stably creates greater economic value for our stakeholders, including shareholders, employees, customers, suppliers, government, community, and others.
TSMC continued to invest in process technologies and capacity and maintain trusting relationships with customers. Our financial objectives include: (1) average ROE across cycle greater or equal to 20%; (2) net income compounded annual growth rate from 2015 to 2020 between 5% and 10%. For example, during the past 10 years, TSMC's averaged ROE was 24% and CAGR for operating income was 11%, both of which met our long-term financial objectives.
Supported by solid financial performance, TSMC's market capitalization has grown steadily. TSMC will maintain a stable and sustainable dividend policy, and will consider raising dividend per share when the free cash flow is sufficient to cover the previous level of dividend payment and any debt repayment.
Since becoming a publicly listed company in 1994, TSMC has consistently delivered value to shareholders through cash dividends and share price appreciation, maintaining a strong balance sheet, and keeping one of the highest credit ratings among global semiconductor companies and Taiwan companies.
Standard & Poor's (S&P) Ratings
For more information, please read TSMC 2017 Corporate Responsibility Report:
Governance and Business - Financial Performance
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