TSMC Annual Report >  2015 > Financial Highlights and Analysis > Financial Status and Operating Results

Financial Status and Operating Results

Financial Status

Consolidated

Unit: NT$ thousands

Item

2015

2014
(Adjusted)
(Note 1)

Difference

%

Current Assets

746,743,991

626,565,639

120,178,352

19%

Long-term Investments (Note 2)

34,993,583

30,056,279

4,937,304

16%

Property, Plant and Equipmen

853,470,392

818,198,801

35,271,591

4%

Intangible Assets

14,065,880

13,531,510

534,370

4%

Other Assets (Note 3)

8,244,452

6,696,857

1,547,595

23%

Total Assets

1,657,518,298

1,495,049,086

162,469,212

11%

Current Liabilities

212,228,594

201,013,629

11,214,965

6%

Noncurrent Liabilities

222,655,225

247,707,125

(25,051,900)

-10%

Total Liabilities

434,883,819

448,720,754

(13,836,935)

-3%

Capital Stock

259,303,805

259,296,624

7,181

0%

Capital Surplus

56,300,215

55,989,922

310,293

1%

Retained Earnings

894,293,586

705,165,274

189,128,312

27%

Others

11,774,113

25,749,291

(13,975,178)

-54%

Equity Attributable to Shareholders of the Parent

1,221,671,719

1,046,201,111

175,470,608

17%

Total Equity

1,222,634,479

1,046,328,332

176,306,147

17%

Note 1:

Starting in 2015, financial statements are prepared in accordance with 2013 Taiwan-IFRSs version; financial statements are adjusted to retroactively apply newly effected GAAP. Please refer to “Financial Highlights” for adjustments for the retrospective application of newly effected GAAP for 2014.

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.

● Analysis of Deviation over 20%

  • The increase in other assets was mainly due to increase in deferred income tax assets and other noncurrent assets.
  • The increase in retained earnings was mainly due to net income of 2015, partially offset by distribution of 2014 earnings.
  • The decrease in others was mainly due to reclassification of unrealized gain from available-for-sale financial assets to profit or loss upon disposal, partially offset by increase in currency exchange differences arising from translation of foreign operations in 2015.

● 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

2015

2014
(Adjusted)
(Note 1)

Difference

%

Current Assets

426,913,080

370,949,497

55,963,583

15%

Long-term Investments (Note 2)

326,330,737

242,395,596

83,935,141

35%

Property, Plant and Equipmen

831,784,912

796,684,361

35,100,551

4%

Intangible Assets

9,391,418

8,996,810

394,608

4%

Other Assets (Note 3)

5,265,368

3,935,389

1,329,979

34%

Total Assets

1,599,685,515

1,422,961,653

176,723,862

12%

Current Liabilities

194,299,278

178,261,092

16,038,186

9%

Noncurrent Liabilities

183,714,518

198,499,450

(14,784,932)

-7%

Total Liabilities

378,013,796

376,760,542

1,253,254

0%

Capital Stock

259,303,805

259,296,624

7,181

0%

Capital Surplus

56,300,215

55,989,922

310,293

1%

Retained Earnings

894,293,586

705,165,274

189,128,312

27%

Others

11,774,113

25,749,291

(13,975,178)

-54%

Total Equity

1,221,671,719

1,046,201,111

175,470,608

17%

Note 1:

Starting in 2015, financial statements are prepared in accordance with 2013 Taiwan-IFRSs version; financial statements are adjusted to retroactively apply newly effected GAAP. Please refer to “Financial Highlights” for adjustments for the retrospective application of newly effected GAAP for 2014.

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.

● Analysis of Deviation over 20%

  • The increase in long-term investments was mainly due to increase in investments accounted for using equity method in 2015.
  • The increase in other assets was mainly due to increase in deferred income tax assets.
  • The increase in retained earnings was mainly due to net income of 2015, partially offset by distribution of 2014 earnings.
  • The decrease in others was mainly due to decrease in unrealized gain from available-for-sale financial assets, partially offset by increase in currency exchange differences arising from translation of foreign operations in 2015.

● 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

2015

2014
(Adjusted)
(Note)

Difference

%

Net Revenue

843,497,368

762,806,465

80,690,903

11%

Cost of Revenue

433,117,601

385,113,005

48,004,596

12%

Gross Profitbefore Realized Gross Profiton Sales to Associates

410,379,767

377,693,460

32,686,307

9%

Realized Gross Profiton Sales to Associates

15,126

28,556

(13,430)

-47%

Gross Profit

410,394,893

377,722,016

32,672,877

9%

Operating Expenses

88,466,500

80,849,570

7,616,930

9%

Other Operating Income and Expenses, Net

(1,880,618)

(1,002,137)

(878,481)

-88%

Income from Operations

320,047,775

295,870,309

24,177,466

8%

Non-operating Income and Expenses

30,381,136

6,208,048

24,173,088

389%

Income before Income Tax

350,428,911

302,078,357

48,350,554

16%

Income Tax Expenses

43,872,744

38,314,399

5,558,345

15%

Net Income

306,556,167

263,763,958

42,792,209

16%

Other Comprehensive Income, Net of Income Tax

(14,714,182)

11,805,021

(26,519,203)

-225%

Total Comprehensive Income for the Year

291,841,985

275,568,979

16,273,006

6%

Total Net Income Attributable to Shareholders of the Parent

306,573,837

263,881,771

42,692,066

16%

Total Comprehensive Income Attributable to Shareholders of the Parent

291,867,757

275,670,991

16,196,766

6%

Note:

Starting in 2015, financial statements are prepared in accordance with 2013 Taiwan-IFRSs version; financial statements are adjusted to retroactively apply newly effected GAAP. Please refer to “Financial Highlights” for adjustments for the retrospective application of newly effected GAAP for 2014.

● Analysis of Deviation over 20%

  • Decrease in realized gross profit on sales to associates: The decrease was mainly due to higher sales to associates in the fourth quarter of 2015.
  • Decrease in other operating income and expenses, net: The decrease was mainly due to impairment losses on property, plant and equipment and intangible assets, partially offset by net gain on disposal of property, plant and equipment, gain from lease agreement modification in 2015, and the absence of an impairment loss on noncurrent assets held for sale in 2014.
  • Increase in non-operating income and expenses: The increase was mainly due to higher net gain on disposal of available-for-sale financial assets and interest income in 2015.
  • Decrease in other comprehensive income, net of income tax: The decrease was mainly due to reclassification of unrealized gain from available-for-sale financial assets to profit or loss upon disposal and decrease in currency exchange gains arising from translation of foreign operations in 2015.

● 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

2015

2014
(Adjusted)
(Note)

Difference

%

Net Revenue

837,046,888

757,152,389

79,894,499

11%

Cost of Revenue

439,356,165

390,284,816

49,071,349

13%

Gross Profitbefore Realized Gross Profiton Sales to Associates

397,690,723

366,867,573

30,823,150

8%

Realized Gross Profiton Sales to Associates

18,117

31,547

(13,430)

-43%

Gross Profit

397,708,840

366,899,120

30,809,720

8%

Operating Expenses

83,953,035

76,267,867

7,685,168

10%

Other Operating Income and Expenses, Net

(347,107)

9,049

(356,156)

-3936%

Income from Operations

313,408,698

290,640,302

22,768,396

8%

Non-operating Income and Expenses

36,579,970

10,363,515

26,216,455

253%

Income before Income Tax

349,988,668

301,003,817

48,984,851

16%

Income Tax Expenses

43,414,831

37,122,046

6,292,785

17%

Net Income

306,573,837

263,881,771

42,692,066

16%

Other Comprehensive Income, Net of Income Tax

(14,706,080)

11,789,220

(26,495,300)

-225%

Total Comprehensive Income for the Year

291,867,757

275,670,991

16,196,766

6%

Note:

Starting in 2015, financial statements are prepared in accordance with 2013 Taiwan-IFRSs version; financial statements are adjusted to retroactively apply newly effected GAAP. Please refer to “Financial Highlights” for adjustments for the retrospective application of newly effected GAAP for 2014.

● Analysis of Deviation over 20%

  • Decrease in realized gross profit on sales to subsidiaries and associates: The decrease was mainly due to higher sales to subsidiaries and associates in the fourth quarter of 2015.
  • Decrease in other operating income and expenses, net: The decrease was mainly due to impairment loss on property, plant and equipment recognized in 2015.
  • Increase in non-operating income and expenses: The increase was mainly due to higher share of profits of subsidiaries and associates in 2015.
  • Decrease in other comprehensive income, net of income tax: The decrease was mainly due to increase in share of other comprehensive loss of subsidiaries and associates and decrease in currency exchange gains arising from translation of foreign operations in 2015.

● 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
12/31/2014

Net Cash Provided by
Operating Activities in 2015

Net Cash Used in Investing and
Financing Activities in 2015

Cash Balance
12/31/2015

Remedy for Liquidity Shortfall

Investment Plan

Financing Plan

   358,449,029

  529,879,438

(325,639,537)

562,688,930

None

None

● Analysis of Cash Flow

  • NT$529.9 billion net cash generated by operating activities: mainly from net income and depreciation and amortization expenses.
  • NT$217.2 billion net cash used in investing activities: primarily for capital expenditures, partially offset by proceeds from disposal of available-for-sale financial assets.
  • NT$108.4 billion net cash used in financing activities: primarily for payment of cash dividends.

● 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
12/31/2014

Net Cash Provided by
Operating Activities in 2015

Net Cash Used in Investing and
Financing Activities in 2015

Cash Balance
12/31/2015

Remedy for Liquidity Shortfall

Investment Plan

Financing Plan

184,859,232

514,772,831

(435,138,480)

264,493,583

None

None

● Analysis of Cash Flow

  • NT$514.8 billion net cash generated by operating activities: mainly from net income and depreciation and amortization expenses.
  • NT$254.8 billion net cash used in investing activities: primarily for capital expenditures.
  • NT$180.3 billion net cash used in financing activities: primarily for payment of cash dividends and capital injection in subsidiaries.

● 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.

Recent Years Major Capital Expenditures and Impact on Financial and Business

Unit: NT$ thousands

 

Plan

Actual or Planned Source of Capital

Total Amount
for 2015 and 2014

Actual Use of Capital

2015

2014

Production Facilities, R&D and
Production Equipment

Cash flowgenerated from operations

538,886,932

253,301,353

285,585,579

Others

Cash flowgenerated from operations

7,169,931

4,215,482

2,954,449

Total

　

546,056,863

257,516,835

288,540,028

Based on capital expenditures listed above and projected for 2016, it is estimated that TSMC’s annual production capacity will increase by approximately 1 million 12-inch equivalent wafers in 2016.

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 2015, the investment gain from these investments amounted to NT$33,694,186 thousand (NT$4,132,128 thousand on a consolidated basis), mainly from the disposal gain of ASML shares. For future investments, TSMC will continue to focus on strategic purposes through prudent assessments.