Taiwan Semiconductor Manufacturing : Financial Statements

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Balance Sheets (Unaudited)

(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)

		September 30, 2021
ASSETS		USD			NTD	%
Current Assets
Cash and Cash Equivalents	$	30,642	$	853,812	25.6	$
Investments in Marketable Financial Instruments		4,379			122,007	3.6
Accounts Receivable		6,717			187,168	5.6
Inventories		6,540			182,234	5.5
Other Current Assets		912			25,418		0.8
Total Current Assets		49,190			1,370,639	41.1
Non-current Assets
Long-term Investments		995			27,730	0.8
Property, Plant and Equipment		65,637			1,828,895	54.9
Right-of-use, Intangible and Other Non-current Assets		3,770			105,048		3.2
Total Non-current Assets		70,402			1,961,673		58.9
Total Assets	$	119,592	$	3,332,312	100.0	$
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term Loans	$	4,265	$	118,844	3.6	$
Accounts Payable		1,575			43,889	1.3
Payables to Contractors and Equipment Suppliers		4,607			128,368	3.8
Cash Dividends Payable		5,118			142,617	4.3
Accrued Expenses and Other Current Liabilities		7,964			221,904	6.7
Current Portion of Bonds Payable		-			-		-
Total Current Liabilities		23,529			655,622	19.7
Non-current Liabilities
Bonds Payable		16,499			459,733	13.8
Other Non-current Liabilities		4,976			138,637		4.1
Total Non-current Liabilities		21,475			598,370		17.9
Total Liabilities		45,004			1,253,992	37.6
Equity Attributable to Shareholders of the Parent
Capital Stock at Par Value		9,306			259,304	7.8
Capital Surplus		2,324			64,747	1.9
Legal Capital Reserve		11,166			311,147	9.3
Special Capital Reserve		2,103			58,594	1.8
Unappropriated Earnings		51,734			1,441,532	43.3
Others		(2,128)			(59,304)		(1.8)
Equity Attributable to Shareholders of the Parent		74,505			2,076,020	62.3
Noncontrolling Interests		83			2,300		0.1
Total Shareholders' Equity		74,588			2,078,320		62.4
Total Liabilities & Shareholders' Equity	$	119,592	$	3,332,312	100.0	$

June 30, 2021				September 30, 2020			QoQ					YoY
NTD		%			NTD		%			Amount		%			Amount		%
747,982		24.2		$	604,195	22.9	$	105,830	14.1	$	249,617		41.3
122,853		4.0			138,225	5.2			(846)	(0.7)			(16,218)		(11.7)
178,260		5.7			162,578	6.2			8,908	5.0			24,590		15.1
170,439		5.5			109,510	4.2			11,795	6.9			72,724		66.4
21,570		0.7			15,166		0.6			3,848		17.8			10,252		67.6
1,241,104		40.1			1,029,674		39.1			129,535		10.4			340,965		33.1
29,063		1.0			26,515	1.0			(1,333)	(4.6)			1,215		4.6
1,722,679		55.7			1,504,438	57.1			106,216	6.2			324,457		21.6
99,969		3.2			74,945		2.8			5,079		5.1			30,103		40.2
1,851,711		59.9			1,605,898		60.9			109,962		5.9			355,775		22.2
3,092,815		100.0		$	2,635,572		100.0		$	239,497		7.7		$	696,740		26.4
139,381		4.5		$	155,378	5.9	$	(20,537)	(14.7)	$	(36,534)		(23.5)
41,230		1.3			40,892	1.6			2,659	6.4			2,997		7.3
107,146		3.5			100,637	3.8			21,222	19.8			27,731		27.6
136,135		4.4			129,652	4.9			6,482	4.8			12,965		10.0
223,857		7.2			159,083	6.0			(1,953)	(0.9)			62,821		39.5
-		-			2,600		0.1			-		-			(2,600)		(100.0)
647,749		20.9			588,242		22.3			7,873		1.2			67,380		11.5
410,465		13.3			227,045	8.6			49,268	12.0			232,688		102.5
40,631		1.3			32,019		1.2			98,006		241.2			106,618		333.0
451,096		14.6			259,064		9.8			147,274		32.6			339,306		131.0
1,098,845		35.5			847,306		32.1			155,147		14.1			406,686		48.0
259,304		8.4			259,304	9.8			-	-			-		-
64,754		2.1			56,340	2.1			(7)	-			8,407		14.9
311,147		10.0			311,147	11.8			-	-			-		-
48,393		1.6			36,758	1.4			10,201	21.1			21,836		59.4
1,366,782		44.2			1,166,071	44.3			74,750	5.5			275,461		23.6
(58,594)		(1.9)			(42,259)		(1.6)			(710)		(1.2)			(17,045)		(40.3)
1,991,786		64.4			1,787,361	67.8			84,234	4.2			288,659		16.2
2,184		0.1			905		0.1			116		5.3			1,395		154.1
1,993,970		64.5			1,788,266		67.9			84,350		4.2			290,054		16.2
3,092,815		100.0		$	2,635,572	100.0	$	239,497	7.7	$	696,740		26.4

Note :

(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$27.864 as of September 30, 2021.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income (Unaudited)

For the Three Months Ended September 30, 2021, June 30, 2021, September 30, 2020

(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)

Except for Per Share Amounts and Shares Outstanding)

				3Q 2021					2Q 2021				3Q 2020				QoQ				YoY
		USD			NTD		%			NTD			%			NTD			%			NTD		%			NTD		%
Net Revenue	$	14,878	$	414,671	100.0	$	372,145			100.0	$	356,426			100.0	$	42,526		11.4	$	58,245		16.3
Cost of Revenue		(7,245)			(201,925)		(48.7)			(185,948)			(50.0)			(165,932)			(46.6)			(15,977)		8.6			(35,993)		21.7
Gross Profit		7,633			212,746	51.3			186,197			50.0			190,494			53.4			26,549		14.3			22,252		11.7
Operating Expenses
Research and Development Expenses		(1,107)			(30,866)	(7.5)			(30,874)			(8.3)			(29,684)			(8.3)			8		-			(1,182)		4.0
Sales, General and Administrative Expenses		(387)			(10,784)		(2.6)			(9,709)			(2.6)			(11,207)			(3.1)			(1,075)		11.1			423		(3.8)
Total Operating Expenses		(1,494)			(41,650)		(10.1)			(40,583)			(10.9)			(40,891)			(11.4)			(1,067)		2.6			(759)		1.9
Other Operating Income and Expenses		(3)			(92)		-			53			-			445			0.1			(145)		(273.6)			(537)		(120.7)
Income from Operations		6,136			171,004	41.2			145,667			39.1			150,048			42.1			25,337		17.4			20,956		14.0
Non-operating Income and Expenses
Share of Profits of Associates		54			1,513	0.4			1,172			0.3			833			0.2			341		29.1			680		81.6
Net Interest Income (Expenses)		1			23	-			294			0.1			1,524			0.4			(271)		(92.2)			(1,501)		(98.5)
Other Gains and Losses		47			1,312		0.3			2,258			0.6			2,719			0.8			(946)		(41.9)			(1,407)		(51.7)
Total Non-operating Income and Expenses		102			2,848		0.7			3,724			1.0			5,076			1.4			(876)		(23.5)			(2,228)		(43.9)
Income Before Income Tax		6,238			173,852	41.9			149,391			40.1			155,124			43.5			24,461		16.4			18,728		12.1
Income Tax Expenses		(624)			(17,372)		(4.2)			(14,910)			(4.0)			(17,745)			(5.0)			(2,462)		16.5			373		(2.1)
Net Income		5,614			156,480	37.7			134,481			36.1			137,379			38.5			21,999		16.4			19,101		13.9
Other Comprehensive Losses		(25)			(708)		(0.1)			(10,201)			(2.7)			(5,436)			(1.5)			9,493		93.1			4,728		87.0
Comprehensive Income	$	5,589	$	155,772	37.6	$	124,280			33.4	$	131,943			37.0	$	31,492		25.3	$	23,829		18.1
Net Income Attributable to:
Shareholders of the Parent	$	5,606	$	156,259	37.7	$	134,359			36.1	$	137,310			38.5	$	21,900		16.3	$	18,949		13.8
Noncontrolling Interests		8			221		-			122			-			69			-			99		81.1			152		220.3
	$	5,614		$	156,480		37.7		$	134,481			36.1		$	137,379			38.5		$	21,999		16.4		$	19,101		13.9
Earnings per Share - Diluted	$	0.22		$	6.03				$	5.18					$	5.30					$	0.85		16.3		$	0.73		13.8
Earnings per ADR - Diluted (2)	$	1.08	$	30.13			$	25.91				$	26.48				$	4.22		16.3	$	3.65		13.8
Weighted Average Outstanding Shares - Diluted ('M)					25,930					25,930						25,930

Note:

1. Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$27.871 for the third quarter of 2021.
2. 1 ADR equals 5 ordinary shares.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income (Unaudited)

(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)

Except for Per Share Amounts and Shares Outstanding)

							For the Nine Months Ended September 30
					2021					2020				YoY
		USD			NTD		%			NTD		%			NTD		%
Net Revenue	$	41,086	$	1,149,226	100.0	$	977,722		100.0	$	171,504		17.5
Cost of Revenue		(20,037)			(560,444)		(48.8)			(461,828)		(47.2)			(98,616)		21.4
Gross Profit		21,049			588,782	51.2			515,894		52.8			72,888		14.1
Operating Expenses
Research and Development Expenses		(3,307)			(92,496)	(8.0)			(79,546)		(8.1)			(12,950)		16.3
Sales, General and Administrative Expenses		(1,031)			(28,849)		(2.5)			(27,189)		(2.8)			(1,660)		6.1
Total Operating Expenses		(4,338)			(121,345)		(10.5)			(106,735)		(10.9)			(14,610)		13.7
Other Operating Income and Expenses		(8)			(228)		-			505		-			(733)		(145.1)
Income from Operations		16,703			467,209	40.7			409,664		41.9			57,545		14.0
Non-operating Income and Expenses
Share of Profits of Associates		141			3,952	0.3			2,238		0.2			1,714		76.6
Net Interest Income (Expenses)		36			1,006	0.1			6,052		0.6			(5,046)		(83.4)
Other Gains and Losses		219			6,140		0.5			5,716		0.6			424		7.4
Total Non-operating Income and Expenses		396			11,098		0.9			14,006		1.4			(2,908)		(20.8)
Income before Income Tax		17,099			478,307	41.6			423,670		43.3			54,637		12.9
Income Tax Expenses		(1,701)			(47,607)		(4.1)			(48,336)		(4.9)			729		(1.5)
Net Income		15,398			430,700	37.5			375,334		38.4			55,366		14.8
Other Comprehensive Losses		(177)			(4,942)		(0.5)			(14,671)		(1.5)			9,729		66.3
Comprehensive Income	$	15,221	$	425,758	37.0	$	360,663		36.9	$	65,095		18.0
Net Income Attributable to:
Shareholders of the Parent	$	15,384	$	430,308	37.5	$	375,119		38.4	$	55,189		14.7
Noncontrolling interests		14			392		-			215		-			177		82.3
	$	15,398		$	430,700		37.5		$	375,334		38.4		$	55,366		14.8
Earnings per Share - Diluted	$	0.59		$	16.59				$	14.47				$	2.12		14.7
Earnings per ADR - Diluted (2)	$	2.97	$	82.97			$	72.33			$	10.64		14.7
Weighted Average Outstanding Shares - Diluted ('M)					25,930					25,930

Note:

1. Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$27.972 for the nine months ended September 30, 2021.
2. 1 ADR equals 5 ordinary shares.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Cash Flow Statements (Unaudited)

For the Nine Months Ended September 30, 2021 and for the Three Months Ended September 30, 2021, June 30, 2021 and September 30, 2020

(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)

		Nine Months 2021			3Q 2021			2Q 2021			3Q 2020
		USD			NTD			NTD			NTD			NTD
Cash Flows from Operating Activities:
Income Before Income Tax	$	17,099	$	478,307	$	173,852	$	149,391	$	155,124
Depreciation & Amortization		11,144			311,732			107,027			103,805			94,733
Share of Profits of Associates		(141)			(3,952)			(1,513)			(1,172)			(833)
Income Taxes Paid		(2,979)			(83,340)			(29,365)			(53,573)			(18,355)
Changes in Working Capital & Others		1,116			31,214			68,705			(11,012)			(40,497)
Net Cash Generated by Operating Activities		26,239			733,961			318,706			187,439			190,172
Cash Flows from Investing Activities:
Interest Received	$	160	$	4,470	$	1,430	$	1,546	$	2,007
Cash Dividend Received		89			2,494			1,942			383			2,656
Acquisitions of:
Property, Plant and Equipment		(21,580)			(603,640)			(188,640)			(166,971)			(99,306)
Marketable Financial Instruments		(6,987)			(195,442)			(43,857)			(73,923)			(65,201)
Proceeds from Disposal or Redemption of:
Property, Plant and Equipment		8			214			97			59			224
Marketable Financial Instruments		7,440			208,108			52,933			74,007			65,533
Others		(259)			(7,227)			(925)			(4,853)			(1,993)
Net Cash Used In Investing Activities		(21,129)			(591,023)			(177,020)			(169,752)			(96,080)
Cash Flows from Financing Activities:
Increase (Decrease) in Short-term Loans	$	1,342	$	37,530	$	(18,094)	$	3,552	$	(16,804)
Proceeds from Issuance of Bonds		7,405			207,128			49,318			136,710			146,226
Repayment of Bonds		(93)			(2,600)			-			-			(10,200)
Interest Paid		(96)			(2,695)			(1,649)			(273)			(429)
Cash Dividends Paid for Common Stock		(6,953)			(194,478)			(64,826)			(64,826)			(64,826)
Others		337			9,440			(73)			(132)			(6,533)
Net Cash Generated by (Used in) Financing Activities		1,942			54,325			(35,324)			75,031			47,434
Effect of Exchange Rate Changes on Cash and Cash Equivalents $	(129)	$	(3,622)	$	(532)	$	(9,464)	$	(4,945)
Net Increase in Cash and Cash Equivalents		6,923			193,641			105,830			83,254			136,581
Cash and Cash Equivalents at Beginning of Period		23,601			660,171			747,982			664,728			467,614
Cash and Cash Equivalents at End of Period	$	30,524	$	853,812	$	853,812	$	747,982	$	604,195

Note:

(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$27.972 for the nine months ended September 30, 2021.