Financial Status
Consolidated
Unit: NT$ thousands
Item |
2014 |
2013 |
Difference |
% |
|---|---|---|---|---|
Current Assets |
626,566,787 |
358,486,654 |
268,080,133 |
75% |
Long-term Investments (Note 1) |
30,051,544 |
89,183,810 |
(59,132,266) |
-66% |
Property, Plant and Equipment |
818,198,801 |
792,665,913 |
25,532,888 |
3% |
Intangible Assets |
13,531,510 |
11,490,383 |
2,041,127 |
18% |
Other Assets (Note 2) |
6,785,203 |
11,228,217 |
(4,443,014) |
-40% |
Total Assets |
1,495,133,845 |
1,263,054,977 |
232,078,868 |
18% |
Current Liabilities |
201,014,777 |
189,777,934 |
11,236,843 |
6% |
Noncurrent Liabilities |
248,443,321 |
225,501,958 |
22,941,363 |
10% |
Total Liabilities |
449,458,098 |
415,279,892 |
34,178,206 |
8% |
Capital Stock |
259,296,624 |
259,286,171 |
10,453 |
0% |
Capital Surplus |
55,989,922 |
55,858,626 |
131,296 |
0% |
Retained Earnings |
704,512,664 |
518,193,152 |
186,319,512 |
36% |
Others |
25,749,291 |
14,170,306 |
11,578,985 |
82% |
Equity Attributable to Shareholders of the Parent |
1,045,548,501 |
847,508,255 |
198,040,246 |
23% |
Total Equity |
1,045,675,747 |
847,775,085 |
197,900,662 |
23% |
| 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, available-for-sale financial assets and notes and accounts receivable in 2014.●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 |
2014 |
2013 |
Difference |
% |
|---|---|---|---|---|
Current Assets |
370,949,497 |
257,623,763 |
113,325,734 |
44% |
Long-term Investments (Note 1) |
242,390,122 |
165,545,159 |
76,844,963 |
46% |
Property, Plant and Equipment |
796,684,361 |
770,443,494 |
26,240,867 |
3% |
Intangible Assets |
8,996,810 |
7,069,456 |
1,927,354 |
27% |
Other Assets (Note 2) |
4,023,634 |
7,897,131 |
(3,873,497) |
-49% |
Total Assets |
1,423,044,424 |
1,208,579,003 |
214,465,421 |
18% |
Current Liabilities |
178,261,092 |
187,195,744 |
(8,934,652) |
-5% |
Noncurrent Liabilities |
199,234,831 |
173,875,004 |
25,359,827 |
15% |
Total Liabilities |
377,495,923 |
361,070,748 |
16,425,175 |
5% |
Capital Stock |
259,296,624 |
259,286,171 |
10,453 |
0% |
Capital Surplus |
55,989,922 |
55,858,626 |
131,296 |
0% |
Retained Earnings |
704,512,664 |
518,193,152 |
186,319,512 |
36% |
Others |
25,749,291 |
14,170,306 |
11,578,985 |
82% |
Total Equity |
1,045,548,501 |
847,508,255 |
198,040,246 |
23% |
| 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 asset, 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, receivables from related parties and inventories in 2014.●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 |
2014 |
2013 |
Difference |
（%） |
|---|---|---|---|---|
Net Revenue |
762,806,465 |
597,024,197 |
165,782,268 |
28% |
Cost of Revenue |
385,100,646 |
316,057,820 |
69,042,826 |
22% |
| Gross Profit before Realized (Unrealized) Gross Profit on Sales to Associates | 377,705,819 |
280,966,377 |
96,739,442 |
34% |
Realized (Unrealized) Gross Profit on Sales to Associates |
28,556 |
(20,870) |
49,426 |
NM (Note) |
Gross Profit |
377,734,375 |
280,945,507 |
96,788,868 |
34% |
Operating Expenses |
80,842,944 |
71,563,234 |
9,279,710 |
13% |
Other Operating Income and Expenses, Net |
(1,001,138) |
47,090 |
(1,048,228) |
-2,226% |
Income from Operations |
295,890,293 |
209,429,363 |
86,460,930 |
41% |
Non-operating Income and Expenses |
6,207,253 |
6,057,759 |
149,494 |
2% |
Income before Income Tax |
302,097,546 |
215,487,122 |
86,610,424 |
40% |
Income Tax Expenses |
38,316,677 |
27,468,185 |
10,848,492 |
39% |
Net Income |
263,780,869 |
188,018,937 |
75,761,932 |
40% |
Other Comprehensive Income, Net of Income Tax |
11,834,164 |
16,352,248 |
(4,518,084) |
-28% |
Total Comprehensive Income for the Year |
275,615,033 |
204,371,185 |
71,243,848 |
35% |
Total Net Income Attributable to Shareholders of the Parent |
263,898,794 |
188,146,790 |
75,752,004 |
40% |
Total Comprehensive Income Attributable to Shareholders of the Parent |
275,717,141 |
204,505,782 |
71,211,359 |
35% |
Note: NM stands for non-meaningful.
●Analysis of Deviation over 20%
Increase in net revenue: The increase was mainly due to higher wafer shipments in 2014. Furthermore, the introduction of 20-nanometer and higher share of 28-nanometer sales contributed to a higher average selling price.●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 |
2014 |
2013 |
Difference |
（%） |
|---|---|---|---|---|
Net Revenue |
757,152,389 |
591,087,600 |
166,064,789 |
28% |
Cost of Revenue |
390,272,233 |
319,407,163 |
70,865,070 |
22% |
| Gross Profit before Realized (Unrealized) Gross Profit on Sales to Subsidiaries and Associates | 366,880,156 |
271,680,437 |
95,199,719 |
35% |
Realized (Unrealized) Gross Profit on Sales to Subsidiaries and Associates |
31,547 |
(35,577) |
67,124 |
NM (Note) |
Gross Profit |
366,911,703 |
271,644,860 |
95,266,843 |
35% |
Operating Expenses |
76,261,094 |
66,924,354 |
9,336,740 |
14% |
Other Operating Income and Expenses, Net |
9,049 |
(66,614) |
75,663 |
NM (Note) |
Income from Operations |
290,659,658 |
204,653,892 |
86,005,766 |
42% |
Non-operating Income and Expenses |
10,363,505 |
11,062,658 |
(699,153) |
-6% |
Income before Income Tax |
301,023,163 |
215,716,550 |
85,306,613 |
40% |
Income Tax Expenses |
37,124,369 |
27,569,760 |
9,554,609 |
35% |
Net Income |
263,898,794 |
188,146,790 |
75,752,004 |
40% |
Other Comprehensive Income, Net of Income Tax |
11,818,347 |
16,358,992 |
(4,540,645) |
-28% |
Total Comprehensive Income for the Year |
275,717,141 |
204,505,782 |
71,211,359 |
35% |
Note: NM stands for non-meaningful.
●Analysis of Deviation over 20%
Increase in net revenue: The increase was mainly due to higher wafer shipments in 2014. Furthermore, the introduction of 20-nanometer and higher share of 28-nanometer sales contributed to a higher average selling price.●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 12/31/2013 |
Net Cash Provided by Operating Activities in 2014 |
Net Cash Used in Investing and Financing Activities in 2014 |
Cash Balance 12/31/2014 |
Remedy for Liquidity Shortfall |
|
|---|---|---|---|---|---|
Investment Plan |
Financing Plan |
||||
242,695,447 |
421,523,731 |
(305,770.149) |
358.449,029 |
None |
None |
●Analysis of Cash Flow
NT$421.5 billion net cash generated by operating activities: mainly from net income and depreciation and amortization expenses.●Remedial Actions for Liquidity Shortfall:
As a result of positive operating cash flows and cash on-hand, remedial actions are not required.
●Cash Flow Projection for Next Year: Not applicable.
Unconsolidated
Unit: NT$ thousands
Cash Balance 12/31/2013 |
Net Cash Provided by Operating Activities in 2014 |
Net Cash Used in Investing and Financing Activities in 2014 |
Cash Balance 12/31/2014 |
Remedy for Liquidity Shortfall |
|
|---|---|---|---|---|---|
Investment Plan |
Financing Plan |
||||
146,438,768 |
410,511,003 |
(372,090,539) |
184,859,232 |
None |
None |
●Analysis of Cash Flow
NT$410.5 billion net cash generated by operating activities: mainly from net income and depreciation and amortization expenses.●Remedial Actions for Liquidity Shortfall:
As a result of positive operating cash flows and cash on-hand, remedial actions are not required.
●Cash Flow Projection for Next Year: Not applicable.
Major Capital Expenditures and Impact on Financial and Business
Unit: NT$ thousands
| Plan | Actual or Planned Source of Capital | Total Amount as of 12/31/2014 |
Actual Use of Capital |
|
|---|---|---|---|---|
2014 |
2013 |
|||
| Production Facilities, R&D and Production Equipment | Cash flow generated from operations and issuance of corporate bonds | 569,407,844 |
285,585,579 |
283,822,265 |
Others |
Cash flow generated from operations |
6,726,957 |
2,954,449 |
3,772,508 |
Total |
|
576,134,801 |
288,540,028 |
287,594,773 |
Based on capital expenditures listed above and projected for 2015, it is estimated that TSMC’s annual production capacity will increase by approximately 1.06 million 12-inch equivalent wafers in 2015.
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 2014, the investment gain from these investments amounted to NT$9,292,150 thousand (NT$3,949,674 thousand on a consolidated basis), mainly from the contribution of mobile computing products. For future investments, TSMC will continue to focus on strategic purposes through prudent assessments.