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Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
Q1 2009 Earning Report of Chartered Semiconductor
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Q1 2009 Earning Report of Chartered Semiconductor

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  • 1. Investor Update April 24, 2009 Singapore © 2009 Chartered Semiconductor Manufacturing Ltd. All rights reserved.
  • 2. Safe Harbor Statement This presentation contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to our focus on growth and profitability leveraging on technology gains, open and robust design services eco-system, differentiated R&D and manufacturing model, optimized scale and costs structure in order to target better diversification, higher growth, enhanced margins, lower breakeven point, sustainable profitability, free cash flow generations and self funding capex model; our estimated total capacity plan for 2009 as well as projected leading edge capacity and the continued capacity ramp for 65nm and below technologies; our significant operating leverage; our guidance for 2Q09 on revenue (including our share of SMP), net loss and cash flow from operations; our target to lower breakeven utilization level to approximately 75% by 4Q09 and the 2009 capex estimate reflect our current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are decreased consumer confidence, financial market turmoil, credit crisis and the deteriorating global economic conditions; reduced demands from our major customers; excess inventory, life cycle, market outlook and trends for specific products; demand and supply outlook in the semiconductor and foundry market; competition from existing foundries and new foundry companies resulting in pricing pressures; products mix; unforeseen delays, interruptions, performance level of our fabrication facilities; our progress on leading-edge products; changes in capacity plans, allocation and process technology mix; unavailability of materials, equipment, manpower and expertise; access to or delays in technological advances or our development of process technologies; the successful implementation of our partnership, technology and supply alliances (including our joint development agreements with IBM and the other joint development partners); the outsourcing strategy of integrated device manufacturers (“IDM”) and our expectation that IDMs will utilize foundry capacity more extensively. Although we believe the expectations reflected in such forward looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which cause actual results to differ materially can be found in quot;Item 3. Key Information — D. Risk Factorsquot; in our 2008 annual report on Form 20-F filed with the US SEC. You are cautioned not to place undue reliance on these forward looking statements, which reflect management's current analysis of future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise . April 24, 2009
  • 3. Focus on Growth and Profitability Leverage Technology Open & Robust Design Differentiated R&D and Optimized Scale and Gains Services Eco-System Manufacturing Model Cost Structure Strong Foundry Alternative Positioning with Fabless Customers Positioning with IDMs Transition from second source supplier to first Key IDMs aligning with Chartered-IBM source supplier technology roadmap with opportunity for Chartered to be a foundry partner of choice Blue-Chip customer base Targets Better Diversification Lower Breakeven Point FCF Generation Higher Growth And Sustainable Profitability Self-Funding Capex Model Enhanced Margins April 24, 2009
  • 4. Common Process Platform & Open Design Services Eco-System Transformational Partnership With IBM Access To Open and Robust Design Services Eco-System • Joint development of 90-nm, 65-nm, 45-nm, 32-nm and 22-nm • Provide easy access to robust 3rd-party EDA, IP and design on 12” wafers solutions • Reciprocal manufacturing arrangement with common access • Close collaboration with eco-system partners at leading edge to partner’s 12” fabs for robust, manufacturing friendly libraries, memories and IP • Broadening joint development alliance to include Infineon, • Development and validation of leading edge reference design flows to address timing, power, signal integrity and yield Samsung, STMicroelectronics, Toshiba, NEC and AMD in collaborative R&D model Library IP Design Design Solutions Solutions Services Tools Common Process and Design Platform Chartered IBM Manufacturing Manufacturing April 24, 2009
  • 5. Affordable and Collaborative R&D for Technology Leadership Chartered Technology Public “Pure Play” Foundries Annual R&D Roadmap vs. ITRS Expenditure 0.35 700 Chartered++ partners Chartered-IBM Chartered IBM SMIC “What-if” Chartered only UMC 0.30 600 ITRS ITRS TSMC CHRT 500 Line Width (micron) 0.25 + ST Microelectronics, Toshiba, NEC & AMD US$ million 400 0.20 Chartered, IBM, Samsung & 300 Infineon 0.15 130nm 200 0.10 90nm 100 65nm45nm 65nm 32nm 22nm 0.05 0 1995 1997 1999 2001 2003 2005 2007 1998 2001 2008 Source: Company Reports. Source : International Technology Roadmap for Semiconductors (ITRS) 2004 & Chartered April 24, 2009
  • 6. Higher Growth in Advanced Technologies Increasing Revenues from Advanced Technologies Continued < 65 nm Capacity Ramp (1) Up 23% Up to 0.13um Above 0.25um 424 Up to 90nm Up to 0.25um 345 Up to 65nm Up to 0.18um < 45nm 147 3% 7% 16% 27% 21% 3% 2007 2008 2009E 35% 1% Total Capacity (1) 34% 26% Leading-Edge Capacity 38% 17% 90nm and Above Capacity 2,613 2,443 13% 18% 1,960 8% 21% 12% 41% 26% 5% 17% 11% 2003 2006 2008 1Q09 2007 2008 2009E (1) In thousands 8” equivalent wafers. Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5). From 2Q 2008 onwards, also includes capacity from eight-inch fab acquisition (Fab 3E). April 24, 2009
  • 7. Woodlands Campus Fab 6 Fab 7 Chartered Silicon Partners (CSP) Fab 3 Fab 2 Fab 5 Silicon Manufacturing Silicon Manufacturing Partners (SMP) Partners (SMP) April 24, 2009
  • 8. Increasing Mature Capacity Utilization Through Value Added Solutions Leveraging Chartered’s Mixed Signals and RF CMOS Strength To Generate VAS Revenue Growth 300% VAS revenues increased by n Targeted applications include: 2.3x since 2005 Smart Cards n 200% RFID Tags n Display Driver ICs n Power Management ICs n Micro Controller Units n 100% n Strategic partnerships for volume production 0% 2005 2006 2007 2008 Value Added Solutions Revenue Performance (Index at 2005 Revenues) (1) Maximizing Mature Capacity Utilization Key To Cash Flow Generation Source: Company. (1) Value Added Solutions (VAS) revenues refer primarily to revenues from radio frequency complementary metal oxide silicon (RF CMOS), non- volatile memory, analog and high voltage technologies relating to quot;0.18um and abovequot; technology nodes. April 24, 2009
  • 9. Significant Operating Leverage Fabs 3 5 6 2 3 5 7 Ramping: Fabs in 2 3 3E 5 6 1 1 2 3 Production: 1997-1998 1999-2000 2005-2009 April 24, 2009
  • 10. Annual Financials (US$M) Revenue Net Income / Cash Flow Total Business Base* 1743 586 1527 1458 82 521 479 406 112 102 332 1103 1132 99 171 102 728 48 67 1661 (11) 8 1415 1356 485 176 1033 932 36 (93) 552 (158) 449 (284) (417) Chartered Net Income Cash Flow from Operations SMP 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 *Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5) April 24, 2009
  • 11. Quarterly Financials (US$M) Revenue Net Income / Cash Flow Estimate** Total Business Base* 166 487 483 23 25 121 158 359 346 43.4 Estimate* 7 19 59 254 464 458 10 -24.4 352 -59 327 244 -114.0 -98.8 Net Income Cash Flow from Operations Chartered SMP 2Q08 3Q08 4Q08 1Q09 2Q09E 2Q08 3Q08 4Q08 1Q09 2Q09E *Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5) April 24, 2009
  • 12. Targeting Lower Break Even Utilization Lowering Break Even Utilization (%) (1) Optimizing Product Mix Approx. 75% Improving Productivity Reducing Cost Base 2Q03 4Q04 4Q05 4Q06 4Q07 4Q 4Q 2008 2009 Target 1. Represents breakeven utilization at the earnings before interest and tax level. April 24, 2009
  • 13. Balance Economies Of Scale And Capex Discipline Declining Historical Capex To Revenue Ratios Significant Capex Reduction Budgeted For 2009 Preservation of cash and liquidity position a top priority n US$ MM 3-Year Rolling Average Historical Actual Capex Annual 2009 Capex Estimate 93.4% 94.7% $758 $687 79.7% $630 73.7% $576 $555 69.0% $420 61.0% $375 55.9% 58.2% 58.0% 52.1% $221 40.0% 43.3% 39.2% 34.7% 2002 2003 2004 2005 2006 2007 2008 2009E 2002 2003 2004 2005 2006 2007 2008 April 24, 2009
  • 14. Reconciliation Table In order to provide investors additional information regarding the company’s financial results as determined in accordance with US GAAP, Chartered also provides information on its total business base revenues, which include the Company’s share of Silicon Manufacturing Partners (“Revenues including Chartered’s share of SMP”). SMP is a minority-owned joint- venture company and under US GAAP reporting, SMP revenues are not consolidated into Chartered’s revenues (“Revenues”). References to revenues including Chartered’s share of SMP are therefore not in accordance with US GAAP. To ensure clarity, the tables below provide a reconciliation. (US$M) 1Q08 2Q08 3Q08 4Q08 1Q09 Revenue 388.2 457.6 463.7 351.7 243.9 CHRT share of SMP Revenue 25.9 24.9 23.5 7.3 9.6 Revenue with CHRT share of SMP 253.5 414.1 482.5 487.2 359.0 April 24, 2009
  • 15. US GAAP Reconciliation Table Breakdown by Technology (micron) Revenues (US GAAP) Percentage of Total 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 0.045 and below - - - - 3% Up to 0.065 11% 14% 19% 23% 22% Up to 0.09 7% 4% 3% 1% 1% Up to 0.13 37% 34% 36% 35% 39% Up to 0.15 - - - 1% 1% Up to 0.18 10% 17% 14% 15% 17% Up to 0.25 15% 14% 11% 9% 5% Up to 0.35 12% 10% 10% 8% 6% Above 0.35 8% 7% 7% 8% 6% Total 100% 100% 100% 100% 100% Chartered’s share of SMP Revenues Percentage of Total 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 0.045 and below - - - - - Up to 0.065 - - - - - Up to 0.09 - - - - - Up to 0.13 - - - - - Up to 0.15 - - - - - Up to 0.18 89% 99% 95% 100% 100% Up to 0.25 6% 1% 3% - - Up to 0.35 5% - 2% - - Above 0.35 - - - - - Total 100% 100% 100% 100% 100% Revenues including Chartered’s share of SMP Percentage of Total 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 0.045 and below - - - - 3% Up to 0.065 10% 13% 19% 23% 21% Up to 0.09 7% 4% 3% 1% 1% Up to 0.13 34% 32% 34% 34% 38% Up to 0.15 - - - 1% 1% Up to 0.18 15% 21% 18% 17% 20% Up to 0.25 14% 14% 10% 9% 5% Up to 0.35 12% 10% 9% 8% 5% Above 0.35 8% 6% 7% 7% 6% Total 100% 100% 100% 100% 100% April 24, 2009
  • 16. www.charteredsemi.com e-mail: ir@charteredsemi.com April 24, 2009

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