Liquidity Analysis:
At the end of 1Q09, total current assets increased by NT$ 15.94 billion to NT$268.56 billion, mainly contributed by the free cash flow of NT$21.17 billion (please refer to page 5) generated during this quarter.
Total current liabilities decreased by NT$11.44 billion in 1Q09, primarily resulting from the repayment of corporate bond and a decline in payables to contractors and equipment suppliers.
Net working capital was NT$223.19 billion and current ratio increased to 5.9x.
III - 2. Receivable/Inventory Days
(In Number of Days)
1Q09 4Q08 1Q08
Days of Receivable 38 46 43
Days of Inventory 44 40 46
Receivable and Inventory Days:
Sequentially, days of receivable decreased by eight days to 38 days in 1Q09, mainly due to a lower level of business activities.
Days of inventory increased by four days to 44 days, reflecting an improving business outlook for 2Q09.
III - 3. Debt Service
(In NT billions) 1Q09 4Q08 1Q08
Cash & Marketable Securities 229.79 211.45 210.31
Interest-Bearing Debt 16.00 23.44 22.88
Net Cash Reserves 213.79 188.01 187.43
Debt Service:
Net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$25.78 billion to NT$213.79 billion at the end of 1Q09, primarily due to free cash flow of NT$21.17 billion generated during this quarter.
IV. Cash Flow
IV - 1. Cash Flow Analysis
(In NT billions) 1Q09 4Q08 1Q08
Net Income 1.56 12.45 28.14
Depreciation & Amortization 20.48 20.96 19.83
Other Operating Sources/(Uses) 4.75 29.83 9.33
Total Operating Sources/(Uses) 26.79 63.24 57.30
Capital Expenditure (5.62) (11.26) (15.31)
Marketable Financial Instruments 13.80 30.31 12.91
Other Investing Sources/(Uses) (0.04) (1.04) (0.73)
Net Investing Sources/(Uses) 8.14 18.01 (3.13)
Repayment of Bonds Payable (8.00) 0.00 0.00
Purchase of Treasury Stock 0.00 0.00 (3.05)
Other Financing Sources/(Uses) 0.12 (0.30) (0.24)
Net Financing Sources/(Uses) (7.88) (0.30) (3.29)
Net Cash Position Changes 27.05 80.95 50.88
Exchange Rate Changes & Others 1.60 1.21 (1.59)
Ending Cash Balance 223.26 194.61 144.28
Summary of Cash Flow:
Cash generated from operating activities totaled NT$26.79 billion during 1Q09, down from NT$63.24 billion in 4Q08, mainly due to lower level of business activities.
Net cash generated from investing activities was NT$8.14 billion in 1Q09, reflecting capital expenditure of NT$5.62 billion and a net decrease of NT$13.80 billion in marketable financial instruments.
As a result, TSMC ended 1Q09 with a cash balance of NT$223.26 billion.
IV - 2. Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$26.79 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$21.17 billion in 1Q09, compared to NT$51.98 billion in 4Q08.
Please refer to the link for the index charts: http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf
V. CapEx & Capacity
V - 1. Capital Expenditures
(In US millions) 1Q09 4Q08
TSMC 161 326
XinTec and GUC 2 2
TSMC Shanghai & WaferTech 3 12
Other TSMC Subsidiaries 0 2
Total TSMC 166 342
