Annual Reports  >  2013  >  Financial Highlights > Financial Status and Operating Results
Financial Status and Operating Results
繁中

Financial Status

Consolidated

Unit: NT$ thousands

Item

2013

2012

Difference

%

Current Assets

358,486,654

250,325,436

108,161,218

43%

Long-term Investments (Note 1)

89,183,810

65,717,240

23,466,570

36%

Property, Plant and Equipment

792,665,913

617,562,188

175,103,725

28%

Intangible Assets

11,490,383

10,959,569

530,814

5%

Other Assets (Note 2)

11,228,217

16,790,075

(5,561,858)

-33%

Total Assets

1,263,054,977

961,354,508

301,700,469

31%

Current Liabilities

189,777,934

148,473,947

41,303,987

28%

Noncurrent Liabilities

225,501,958

89,786,655

135,715,303

151%

Total Liabilities

415,279,892

238,260,602

177,019,290

74%

Capital Stock

259,286,171

259,244,357

41,814

0%

Capital Surplus

55,858,626

55,675,340

183,286

0%

Retained Earnings

518,193,152

408,411,468

109,781,684

27%

Equity Attributable to Shareholders of the Parent

847,508,255

720,550,680

126,957,575

18%

Total Equity

847,775,085

723,093,906

124,681,179

17%

Note 1: Long-term investments consist of noncurrent available-for-sale financial assets, financial assets carried at cost and investments accounted for using equity method.
Note 2: Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets.

● Analysis of Deviation over 20%

  • The increase in current assets was mainly due to increase in cash and cash equivalents in 2013.
  • The increase in long-term investments was mainly due to increase in fair value of available-for-sale financial assets in 2013.
  • The increase in property, plant and equipment was mainly due to acquisition of advanced technology equipment during 2013.
  • The decrease in other assets was mainly due to decrease in deferred income tax assets.
  • The increase in total assets was mainly due to increase in cash and cash equivalents and property, plant and equipment.
  • The increase in current liabilities was mainly due to increase in payables to contractors and equipment suppliers and income tax payable, partially offset by decrease in short-term loans.
  • The increase in noncurrent liabilities was mainly due to issuance of corporate bonds of NT$130.8 billion in 2013.
  • The increase in total liabilities was mainly due to increase in noncurrent liabilities.
  • The increase in retained earnings was mainly due to net income of 2013, partially offset by distribution of 2012 earnings.

● Major Impact on Financial Position

  • The above deviations had no major impact on TSMC’s financial position.

● Future Plan on Financial Position:

  • Not applicable.

Unconsolidated

Unit: NT$ thousands

Item

2013

2012

Difference

%

Current Assets

257,623,763

205,819,614

51,804,149

25%

Long-term Investments (Note 1)

165,545,159

139,634,200

25,910,959

19%

Property, Plant and Equipment

770,443,494

586,636,036

183,807,458

31%

Intangible Assets

7,069,456

6,449,837

619,619

10%

Other Assets (Note 2)

7,897,131

13,597,966

(5,700,835)

-42%

Total Assets

1,208,579,003

952,137,653

256,441,350

27%

Current Liabilities

187,195,744

144,528,616

42,667,128

30%

Noncurrent Liabilities

173,875,004

87,058,357

86,816,647

100%

Total Liabilities

361,070,748

231,586,973

129,483,775

56%

Capital Stock

259,286,171

259,244,357

41,814

0%

Capital Surplus

55,858,626

55,675,340

183,286

0%

Retained Earnings

518,193,152

408,411,468

109,781,684

27%

Total Equity

847,508,255

720,550,680

126,957,575

18%

Note 1: Long-term investments consist of financial assets carried at cost and investments accounted for using equity method.
Note 2: Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets

● Analysis of Deviation over 20%

  • The increase in current assets was mainly due to increase in cash and cash equivalents in 2013.
  • The increase in property, plant and equipment was mainly due to acquisition of advanced technology equipment during 2013.
  • The decrease in other assets was mainly due to decrease in deferred income tax assets.
  • The increase in total assets was mainly due to increase in cash and cash equivalents and property, plant and equipment.
  • The increase in current liabilities was mainly due to increase in payables to contractors and equipment suppliers and income tax payable, partially offset by decrease in short-term loans.
  • The increase in noncurrent liabilities was mainly due to issuance of corporate bonds of NT$86.2 billion in 2013.
  • The increase in total liabilities was mainly due to increase in noncurrent liabilities.
  • The increase in retained earnings was mainly due to net income of 2013, partially offset by distribution of 2012 earnings.

● Major Impact on Financial Position

The above deviations had no major impact on TSMC’s financial position.

● Future Plan on Financial Position:

Not applicable.

Financial Performance

Consolidated

Unit: NT$ thousands

Item

2013

2012

Difference

%

Net Revenue

597,024,197

506,745,234

90,278,963

18%

Cost of Revenue

316,057,820

262,583,098

53,474,722

20%

Gross Profit before Unrealized Gross Profit on Sales to
Associates

280,966,377

244,162,136

36,804,241

15%

Unrealized Gross Profit on Sales to Associates

(20,870)

(25,029)

4,159

-17%

Gross Profit

280,945,507

244,137,107

36,808,400

15%

Operating Expenses

71,563,234

62,510,875

9,052,359

14%

Other Operating Income and Expenses, Net

47,090

(449,364)

496,454

NM (Note)

Income from Operations

209,429,363

181,176,868

28,252,495

16%

Non-operating Income and Gains

6,057,759

499,588

5,558,171

1113%

Income before Income Tax

215,487,122

181,676,456

33,810,666

19%

Income Tax Expenses

27,468,185

15,552,654

11,915,531

77%

Net Income

188,018,937

166,123,802

21,895,135

13%

Other Comprehensive Income, Net of Income Tax

16,352,248

4,252,632

12,099,616

285%

Total Comprehensive Income for the Year

204,371,185

170,376,434

33,994,751

20%

Total Net Income Attributable to Shareholders of the Parent

188,146,790

166,318,286

21,828,504

13%

Total Comprehensive Income Attributable to Shareholders
of the Parent

204,505,782

170,521,543

33,984,239

20%

Note: NM stands for non-meaningful.

● Analysis of Deviation over 20%

  • Increase in cost of revenue: The increase was mainly due to higher sales.
  • Increase in other operating income and expenses, net: The increase was mainly due to impairment loss related to property, plant and equipment recognized in 2012.
  • Increase in non-operating income and gains: The increase was primarily due to increase in earnings of equity method investees, lower impairment loss of financial assets recognized in 2013, partially offset by higher interest expenses for corporate bonds in 2013.
  • Increase in income tax expenses: The increase was mainly due to higher taxable income, the AMT tax rate changed from 10% to 12% and increase in income tax on unappropriated earnings.
  • Increase in other comprehensive income, net of income tax: The increase was mainly due to exchange rate differences arising from translation of foreign operations and the increase in fair value of available-for-sale financial assets in 2013.
  • Increase in total comprehensive income and total comprehensive income attributable to shareholders of the parent: The increase was mainly due to higher net income and other comprehensive income in 2013.

● Sales Volume Forecast and Related Information

For additional details, please refer to “ Letter to Shareholders” of this Annual Report..

● Major Impact on Financial Performance

The above deviations had no major impact on TSMC’s financial performance.

● Future Plan on Financial Performance:

Not applicable.

Unconsolidated

Unit: NT$ thousands

Item

2013

2012

Difference

%

Net Revenue

591,087,600

500,369,525

90,718,075

18%

Cost of Revenue

319,407,163

265,494,185

53,912,978

20%

Gross Profit before Unrealized Gross Profit on Sales to
Subsidiaries and Associates

271,680,437

234,875,340

36,805,097

16%

Unrealized Gross Profit on Sales to Subsidiaries and Associates

(35,577)

(25,029)

(10,548)

42%

Gross Profit

271,644,860

234,850,311

36,794,549

16%

Operating Expenses

66,924,354

57,481,083

9,443,271

16%

Other Operating Income and Expenses, Net

(66,614)

(549,087)

482,473

-88%

Income from Operations

204,653,892

176,820,141

27,833,751

16%

Non-operating Income and Gains

11,062,658

6,932,246

4,130,412

60%

Income before Income Tax

215,716,550

183,752,387

31,964,163

17%

Income Tax Expenses

27,569,760

17,434,101

10,135,659

58%

Net Income

188,146,790

166,318,286

21,828,504

13%

Other Comprehensive Income, Net of Income Tax

16,358,992

4,203,257

12,155,735

289%

Total Comprehensive Income for the Year

204,505,782

170,521,543

33,984,239

20%

● Analysis of Deviation over 20%

  • Increase in cost of revenue: The increase was mainly due to higher sales.
  • Increase in unrealized gross profit on sales to subsidiaries and associates: The increase was mainly due to higher sales to subsidiaries and associates in the fourth quarter 2013.
  • Decrease in other operating income and expenses, net: The decrease was mainly due to property, plant and equipment impairment loss during 2012.
  • Increase in non-operating income and gains: The increase was primarily due to increase in earnings of equity method, less impairment loss of financial assets recognized in 2013, partially offset by higher interest expenses for corporate bonds in 2013.
  • Increase in income tax expenses: The increase was mainly due to higher taxable income, the AMT tax rate changed from 10% to 12% and income tax on unappropriated earnings.
  • Increase in other comprehensive income, net of income tax: The increase was mainly due to exchange rate differences arising from translation of foreign operations and the increase in other comprehensive income of subsidiaries and associates in 2013.
  • Increase in total comprehensive income: The increase was mainly due to higher net income and other comprehensive income in 2013.

● Sales Volume Forecast and Related Information

For additional details, please refer to “Letter to Shareholders” of this Annual Report.

● Major Impact on Financial Performance

The above deviations had no major impact on TSMC’s financial performance.

● Future Plan on Financial Performance:

Not applicable.

Cash Flow

Consolidated

Unit: NT$ thousands

Cash Balance 12/31/2012

Net Cash Provided by Operating Activities in 2013

Net Cash Used in Investing and Financing Activities in 2013

Cash Balance 12/31/2013

Remedy for Liquidity Shortfall

Investment Plan

Financing Plan

143,410,588

347,383,537

(248,098,678)

242,695,447

None

None

● Analysis of Cash Flow

  • NT$347.4 billion net cash generated by operating activities: mainly from net income and depreciation/amortization.
  • NT$281.1 billion net cash used in investing activities: primarily for capital expenditures.
  • NT$33 billion net cash generated by financing activities: mainly from issuance of corporate bonds, partially offset by payment of cash dividends and decrease in short-term loans.

● Remedial Actions for Liquidity Shortfall:

As a result of positive operating cash flows and cash on-hand, remedial actions are not required.

● Cash Flow Projection for Next Year:

Not applicable.

Unconsolidated

Unit: NT$ thousands

Cash Balance 12/31/2012

Net Cash Provided by Operating Activities in 2013

Net Cash Used in Investing and Financing Activities
in 2013

Cash Balance 12/31/2013

Remedy for Liquidity Shortfall

Investment Plan

Financing Plan

109,150,810

335,283,326

(297,995,368)

146,438,768

None

None

● Analysis of Cash Flow

  • NT$335.3 billion net cash generated by operating activities: mainly from net income and depreciation/amortization.
  • NT$284.4 billion net cash used in investing activities: primarily for capital expenditures.
  • NT$13.6 billion net cash used in financing activities: mainly from payment of cash dividends and decrease in short-term loans, partially offset by issuance of corporate bonds.

● Remedial Actions for Liquidity Shortfall:

As a result of positive operating cash flows and cash on-hand, remedial actions are not required.

● Cash Flow Projection for Next Year:

Not applicable.

Major Capital Expenditures and Impact on Financial and Business

Unit: NT$ thousands

Plan

Actual or Planned Source of Capital

Total Amount as of 12/31/2013

Actual Use of Capital

2013

2012

Production Facilities, R&D and Production Equipment

Cash flow generated from operations and issuance of corporate bonds

527,715,597

283,822,265

243,893,332

Others

Cash flow generated from operations

6,016,537

3,772,508

2,244,029

Total

 

533,732,134

287,594,773

246,137,361

Based on capital expenditures listed above and projected for 2014, it is estimated that TSMC’s annual production capacity will increase by approximately 1.64 million 8-inch equivalent wafers in 2014.

Long-term Investment Policy and Results

TSMC’s long-term investments, accounted for under the equity method, were all made for strategic purposes. However, when an investment is no longer of strategic value, it may be considered a financial investment. In 2013, the investment gain from these investments amounted to NT$9,530,933 thousand (NT$3,972,031 thousand on a consolidated basis), increasing significantly compared to 2012 mainly due to the high growth of mobile computing products and the recovery of solar market. For future investments, TSMC will continue to focus on strategic purposes through prudent assessments.