Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-
ST: CHARTERED), one of the world's top dedicated semiconductor foundries, today announced
results for second quarter 2005.."Chartered revenues in second quarter 2005 were up seven percent and revenues including our share of
SMP were up 12 percent sequentially. As we had anticipated, we saw strength in the communications
and computer sectors, partially offset by weakness in the consumer sector," said George Thomas, senior
vice president & CFO of Chartered. "We are pleased that Fab 7, our first 300-millimeter wafer
fabrication facility, started commercial shipment in June 2005, instead of July as we had anticipated
earlier."
Summary of Second Quarter 2005 Performance
?Revenues were $194.0 million in second quarter 2005, up 7.0 percent from $181.4 million in first
quarter 2005. Revenues including Chartered's share of SMP were $219.9 million, up 12.2 percent
from $196.1 million in first quarter 2005, primarily due to strength in the communications and
computer sectors, partially offset by weakness in the consumer sector. Compared to the year-ago
quarter, revenues were down 24.2 percent from $255.8 million. Revenues including Chartered's
share of SMP were down 28.6 percent from $308.1 million in second quarter 2004 with the largest
dollar decline coming from the communications sector followed by the computer sector and to a
lesser extent, the consumer sector.
?Gross profit was $0.4 million, or 0.2 percent of revenues, down from a gross profit of $60.0 million,
or 23.4 percent of revenues in the year-ago quarter, primarily due to lower revenues. Gross profit
for the quarter was an improvement of $10.2 million compared to a gross loss of $9.7 million, or
negative 5.4 percent of revenues in first quarter 2005, primarily due to higher revenues.
?Research and development (R&D) expenses were $27.7 million, a decrease of 14.2 percent from
the year-ago quarter, primarily due to reduction in R&D activities related to 0.13-micron
technologies.
?Pre-production fab start-up costs, all related to Fab 7, were $7.9 million in second quarter 2005,
compared to $8.1 million in the year-ago quarter and $14.8 million in first quarter 2005. Pre-production
fab start-up costs were lower in second quarter 2005 compared to first quarter 2005 as
Fab 7 started commercial production during the quarter.
?General and administrative (G&A) expenses were $10.6 million, an increase of 14.1 percent
compared to $9.3 million in the first quarter 2005, primarily due to the effect of employee leave
clearance in first quarter 2005.
?Other operating expenses were $3.9 million in second quarter 2005, related to a fixed asset
impairment charge on assets held for sale. Other operating expenses were $2.4 million in second.quarter 2004, related to an impairment charge of $1.7 million resulting from the migration to an
enhanced manufacturing system and $0.7 million of Fab 1 restructuring costs.
?Equity in income of Chartered's minority-owned joint-venture fab, SMP (Fab 5), was an income of
$0.8 million compared to an income of $10.4 million in the year-ago quarter, primarily due to
significantly lower revenues. Compared to first quarter 2005, equity in income of SMP increased
$9.8 million from a loss of $9.0 million, primarily due to higher revenues.
?Other income was $3.0 million compared to $17.0 million in the year-ago quarter. The year-ago
quarter included recognition of $16.1 million arising from the closure of a pending grant claim
associated with a previously terminated joint technology development agreement.
?Net interest expense was $8.6 million, an increase of 42.2 percent from $6.0 million in the year-ago
quarter. This was primarily due to higher interest expense resulting from higher average
outstanding loan balances and higher interest rates, partially offset by higher interest capitalization
associated with capital expenditures related to Fab 7, and to a lesser extent an increase in interest
income. Compared to first quarter 2005, net interest expense increased $6.2 million primarily due
to higher interest expense resulting from higher average outstanding loan balances, higher interest
rates and lower interest capitalization associated with capital expenditures related to Fab 7 and Fab
6, partially offset by an increase in interest income.
?None of the losses in Chartered's consolidated joint-venture fab, Chartered Silicon Partners (CSP or
Fab 6), were allocated to the minority interest in second quarter 2005. CSP's financial position
continued to be in capital deficit in second quarter 2005, thereby requiring Chartered to recognize
100 percent of CSP's results, which was a loss of $46.6 million in the quarter. CSP's loss in second
quarter 2005 increased compared to the previous quarter, primarily due to lower revenues. At the
end of second quarter 2005, CSP's capital deficit was $345.6 million.
?Net loss was $67.1 million, or negative 34.6 percent of revenues, compared to a net profit of $15.3
million, or 6.0 percent of revenues, in the year-ago quarter, and a net loss of $84.5 million, or
negative 46.6 percent of revenues in the previous quarter.
?Loss per American Depositary Share (ADS) and loss per share in second quarter 2005 were $0.27
and $0.03 respectively, compared with earnings per ADS and earnings per share in second quarter
2004 of $0.06 and $0.01 respectively.
Wafer Shipments and Average Selling Prices (eight-inch equivalent)
?Shipments in second quarter 2005 were 203.8 thousand wafers, a decrease of 16.5 percent
compared to 244.0 thousand wafers in second quarter 2004, and an increase of 15.9 percent
compared to 175.8 thousand wafers shipped in first quarter 2005. Shipments including Chartered's.share of SMP in second quarter 2005 were 224.5 thousand wafers, a decrease of 19.6 percent
compared to 279.2 thousand wafers in second quarter 2004 and an increase of 20.5 percent
compared to 186.2 thousand wafers in first quarter 2005.
?Average selling price (ASP) was $913 per wafer in second quarter 2005, a decrease of 8.3 percent
compared to $996 per wafer in first quarter 2005, primarily due to product mix and to a lesser
extent, pricing pressure at the mature technology nodes. The ASP decline included the impact
from lower 0.13-micron revenues in second quarter 2005 due to a specific product from a customer
in the consumer sector reaching its end-of-life cycle, as communicated in our second quarter 2005
guidance provided on April 22, 2005. ASP including Chartered's share of SMP was $944 per
wafer in second quarter 2005, a decline of 7.3 percent from $1,019 per wafer in first quarter 2005.
Capacity and Utilization
?Capacity utilization in second quarter 2005 was 65 percent compared to 90 percent in the year-ago
quarter, and 59 percent in first quarter 2005. Capacity in second quarter 2005 was up
approximately 13 percent compared to second quarter 2004 and up approximately nine percent
compared to first quarter 2005. Capacity utilization is based on total wafer shipments and total
capacity, both of which include Chartered's share of SMP.
Utilization Table
Data including Chartered's share of SMP
Thousand 8" equivalent wafers 2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Total wafers shipped 279.2 287.1 200.8 186.2 224.5
Total capacity 308.0 322.5 327.0 317.0 346.5
Utilization 90% 89% 61% 59% 65%
Capacity by Fab
(Thousand 8" equivalent
wafers)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005 Est 3Q
2005
Fab 2 129.8 131.2 131.8 130.6 137.7 139.2
Fab 3 64.4 73.0 73.0 71.4 74.3 74.2
Fab 5 (Chartered's share) 36.3 37.2 37.0 34.5 35.8 36.2
Fab 6 77.5 81.1 85.2 80.5 89.4 100.5
Fab 7 (a) - - - - 9.3 51.3
Total 308.0 322.5 327.0 317.0 346.5 401.4
(a) Fab 7 started commercial shipment in June 2005.Market Dynamics
The following business statistics tables provide information on revenues including Chartered's share of
SMP by market sector, region and technology.
Breakdown by Market Sector
Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Communications 55% 48% 47% 37% 44%
Computer 29% 36% 31% 31% 34%
Consumer 13% 12% 17% 27% 16%
Other (b) 3% 4% 5% 5% 6%
Total 100% 100% 100% 100% 100%
Breakdown by Region
Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Americas 64% 61% 67% 68% 58%
Europe 14% 15% 14% 13% 17%
Asia-Pacific 18% 20% 15% 13% 16%
Japan 4% 4% 4% 3% 5%
Other (b) - - - 3% 4%
Total 100% 100% 100% 100% 100%
Breakdown by Technology (micron)
Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
0.13 and below 17% 16% 25% 32% 23%
Up to 0.15 8% 5% 3% 4% 6%
Up to 0.18 21% 18% 17% 18% 18%
Up to 0.25 19% 20% 11% 11% 11%
Up to 0.35 24% 28% 26% 21% 26%
Above 0.35 11% 13% 18% 11% 12%
Other (b) - - - 3% 4%
Total 100% 100% 100% 100% 100%
(b) Includes revenues from services related to generation of customers' mask sets.
Recent Highlights and Events
?Chartered and IBM announced additional common design enablement support for their jointly
developed 90nm base process platform. The expanded support will include low-power libraries by
ARM(r); electronic design automation (EDA) low-power reference flows by Cadence, Magma and
Synopsys; and design kits for high-speed connectivity standards by Synopsys and ARM. These.latest solutions underscore the companies' expanding efforts to help early adopters reduce design
risks and achieve fast volume ramp for their leading-edge system-on-chip (SoC) products.
?At 65nm, Chartered and IBM are offering the ARM Artisan(r) Metro low-power platform for the
IBM-Chartered low-power common process platform. The library solution - the industry's first
third-party, low-power intellectual property (IP) available for a foundry 65nm process -
incorporates the combined expertise of Chartered, IBM and ARM in addressing the complexities of
power management and design for manufacturability. The 65nm agreement leverages the
companies' collaborative development efforts for the Chartered-IBM 90nm common platform and
validates their continued commitment to be at the forefront of providing leading-edge design and
manufacturing solutions.
?Samsung has joined Chartered and IBM in extending 90nm and 65nm common design enablement
solutions for the common platform, thereby enhancing design portability and expanding multi-sourcing
flexibility for customers. Samsung has licensed the 90nm common design enablement
technology utilized by IBM and Chartered, while the three companies will jointly develop the 65nm
design kits. The common design enablement platform - initially for base and low-power processes -
comprises of 90nm and 65nm common foundry design kits and test chips. Elements of the 65nm
design solutions also include common SRAM kits for single- and dual-port memories; eFUSE kit;
and electrostatic discharge (ESD) kit. Additionally, the agreements enable Chartered, IBM and
Samsung to collaborate and jointly offer third-party EDA and intellectual property (IP) solutions.
Review and Outlook
"Mainly due to the 90nm revenues and also higher demand attributable to improving market conditions,
we expect Chartered revenues to increase approximately 46 percent and revenues including our share of
SMP to increase approximately 40 percent sequentially in third quarter 2005," said Thomas. "This
translates to approximately 70 percent utilization rate for the quarter, after comprehending around 16
percent sequential increase in capacity compared to second quarter 2005. In third quarter 2005, we
expect revenues from 0.13-micron and below technologies, including 90nm, to represent around 40
percent of our total business base revenues, and 90nm revenues alone to contribute approximately 22
percent of our total business base revenues. We expect loss for the third quarter to be approximately
$47 million. This comprehends a higher than historical net income fall through rate on revenues from
our older fabs as depreciation from these fabs declines, partially offset by the higher cost of Fab 7 in its
first quarter of volume ramp.."In comparison to second quarter 2005, we see strength in the consumer sector and to a lesser extent in
the communications sector, partially offset by lower demand in the computer sector," concluded
Thomas.
The outlook for third quarter 2005 is as follows. This outlook does not comprehend the financial effects
of the offering of senior notes and units announced today.
2Q 2005 3Q 2005 Guidance
Actual Midpoint and range Sequential change
Revenues $194.0M $283.0M, +/- $4M Up 44% to 48%
Revenues including Chartered's share
of SMP $219.9M $307.0M, +/- $5M Up 37% to 42%
ASP (c) $913 $1,063, +/- $20 Up 14% to 19%
ASP including Chartered's share of
SMP (c) $944 $1,066, +/- $25 Up 10% to 16%
Utilization 65% 70%, +/- 2% -
Gross profit (loss) $0.4M $18.0M, +/- $4M -
Net income (loss) (d) $(67.1)M $(47.0)M, +/- $5M -
Earnings (loss) per ADS $(0.27) $(0.19), +/- $0.02 -
(c) Eight-inch equivalent wafers
(d) Net loss includes the negative profit impact from losses attributable to minority interest,
which was $22.9 million in second quarter 2005, and is projected to be approximately $22.5
million in third quarter 2005.
CEO Closing Comments
"In the third quarter, you should see Chartered delivering another critical milestone in the
transformation of the company: volume shipments of leading-edge 90nm wafers. No doubt, the
exceptionally high growth rate in third quarter for our most advanced technology node is mainly driven
by the initial volume build for a new product launch before year end. However, I believe the 90nm
capacity ramp and the proven capability to manufacture wafers with leading-edge technology in volume
will further aid the market acceptance of the IBM-Chartered technology platform and enhance our
market reach," said Chia Song Hwee, president & CEO of Chartered.."As we continue to focus on execution and address new market opportunities, bringing Chartered back
to sustained profitability continues to be a top priority for the management. As communicated earlier,
we are targeting to reduce our breakeven point to about 75 percent utilization by the end of 2005, which
is approximately 10 percentage points below the level in fourth quarter 2004. Pricing environment and
product mix, both of which continue to be dynamic are the risks to our operating cost structure,"
concluded Chia.
Webcast Conference Call Today
Chartered will be discussing its second quarter 2005 results and third quarter 2005 outlook on a
conference call today, July 22, 2005, at 8:30 a.m. Singapore time (US time 5:30 p.m. PT/8:30 p.m. ET,
Thursday, July 21, 2005). A webcast of the conference call will be available to all interested parties on
Chartered's Web site at www.charteredsemi.com, under Investor Relations, or at
http://ir.charteredsemi.com.
Mid-Quarter Guidance
The Company provides a guidance update midway through each quarter. For third quarter 2005, the
Company anticipates issuing its mid-quarter guidance update, via news release, on Tuesday, September
6, 2005, Singapore time..APPENDIX A
US GAAP Reconciliation Table
In order to provide investors additional information regarding the company's financial results as
determined in accordance with US GAAP, in this report 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
in this report are therefore not in accordance with US GAAP. To ensure clarity, the tables below
provide a reconciliation.
2Q 2004
Actual
1Q 2005
Actual
2Q 2005
Actual
3Q 2005
Guidance
Midpoint
Revenues (e) $255.8M $181.4M $194.0M $283.0M
Chartered's share of SMP revenues $52.3M $14.7M $25.9M $24.0M
Revenues including Chartered's share of SMP $308.1M $196.1M $219.9M $307.0M
ASP (e) (f) $1,048 $996 $913 $1,063
ASP of Chartered's share of SMP revenues (f) $1,485 $1,403 $1,253 $1,109
ASP including Chartered's share of SMP (f) $1,103 $1,019 $944 $1,066
(e) Determined in accordance with US GAAP.
(f) Eight-inch equivalent wafers.Breakdown by Market Sector
Revenues (US GAAP) (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Communications 55% 47% 47% 37% 43%
Computer 26% 36% 30% 29% 32%
Consumer 15% 13% 18% 28% 18%
Other (g) 4% 4% 5% 6% 7%
Total 100% 100% 100% 100% 100%
Chartered's share of SMP revenues (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Communications 52% 54% 43% 33% 44%
Computer 44% 40% 47% 59% 51%
Consumer 2% 3% 10% 7% 3%
Other 2% 3% - 1% 2%
Total 100% 100% 100% 100% 100%
Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Communications 55% 48% 47% 37% 44%
Computer 29% 36% 31% 31% 34%
Consumer 13% 12% 17% 27% 16%
Other (g) 3% 4% 5% 5% 6%
Total 100% 100% 100% 100% 100%
Breakdown by Region
Revenues (US GAAP) (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Americas 68% 65% 71% 73% 63%
Europe 9% 9% 10% 8% 11%
Asia-Pacific 20% 22% 16% 14% 17%
Japan 3% 4% 3% 2% 5%
Other (g) - - - 3% 4%
Total 100% 100% 100% 100% 100%
Chartered's share of SMP Revenues (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Americas 44% 40% 15% 15% 17%
Europe 42% 46% 74% 74% 66%
Asia-Pacific 11% 12% 2% - 4%
Japan 3% 2% 9% 11% 13%
Total 100% 100% 100% 100% 100%.Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
Americas 64% 61% 67% 68% 58%
Europe 14% 15% 14% 13% 17%
Asia-Pacific 18% 20% 15% 13% 16%
Japan 4% 4% 4% 3% 5%
Other (g) - - - 3% 4%
Total 100% 100% 100% 100% 100%
Breakdown by Technology (micron)
Revenues (US GAAP) (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
0.13 and below 18% 17% 27% 33% 26%
Up to 0.15 - - - - -
Up to 0.18 18% 13% 15% 17% 14%
Up to 0.25 21% 21% 11% 12% 12%
Up to 0.35 30% 33% 28% 22% 29%
Above 0.35 13% 16% 19% 13% 15%
Other (g) - - - 3% 4%
Total 100% 100% 100% 100% 100%
Chartered's share of SMP Revenues (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
0.13 and below 8% 9% 3% 10% 3%
Up to 0.15 48% 34% 39% 53% 50%
Up to 0.18 35% 42% 56% 37% 47%
Up to 0.25 9% 15% 2% - -
Up to 0.35 - - - - -
Above 0.35 - - - - -
Total 100% 100% 100% 100% 100%
Revenues including Chartered's share of SMP (Percentage of Total)
2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005
0.13 and below 17% 16% 25% 32% 23%
Up to 0.15 8% 5% 3% 4% 6%
Up to 0.18 21% 18% 17% 18% 18%
Up to 0.25 19% 20% 11% 11% 11%
Up to 0.35 24% 28% 26% 21% 26%
Above 0.35 11% 13% 18% 11% 12%
Other (g) - - - 3% 4%
Total 100% 100% 100% 100% 100%
(g) Includes revenues from services related to generation of customers' mask sets..About Chartered
Chartered Semiconductor Manufacturing (Nasdaq: CHRT, SGX-ST: CHARTERED), one of the
world's top dedicated semiconductor foundries, offers leading-edge technologies down to 90 nanometer
(nm), enabling today's system-on-chip designs. The company further serves the needs of customers
through its collaborative, joint development approach on a technology roadmap that extends to 45nm.
Chartered's strategy is based on open and comprehensive design enablement solutions, manufacturing
enhancement methodologies, and a commitment to flexible sourcing. In Singapore, the company
operates a 300mm fabrication facility and four 200mm facilities. Information about Chartered can be
found at http://www.charteredsemi.com.
Safe Harbor Statement under the provisions of the United States Private Securities Litigation
Reform Act of 1995
This news release 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 outlook for the third quarter of 2005; projected revenues
and average selling prices (including Chartered's share of SMP), utilization rate, gross profit (loss), net
income (loss) and earnings (loss) per ADS and the expected growth of wafer shipments and revenue
(including Chartered's share of SMP); our expectation of revenue contribution from 0.13-micron and
below technologies including 90nm; estimated capacity by fabs for the third quarter of 2005; the ramp
of Fab 7 to manufacture and volume shipments of leading-edge 90nm wafers and the reduction of our
breakeven point to 75 percent utilization by the end of 2005 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: changes in market outlook and trends,
specifically in the foundry services and communications and computer markets; demands from our
major customers, excess inventory and life cycles of specific products; competition from other
foundries; unforeseen delays or interruptions in our plans for our fabrication facilities; the performance
level of and technology mix in our fabrication facilities; our progress on leading edge products; the
successful implementation of our partnership, technology and supply alliances; the timing and rate of
the semiconductor market recovery; economic conditions in the United States as well as globally and
the growth rate of fabless companies and the outsourcing strategy of integrated device manufacturers.
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 could cause actual
results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on
Form 20-F filed with the U.S. Securities and Exchange Commission. You are cautioned not to place
undue reliance on these forward-looking statements, which are based on the current view of
management on 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..CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US Dollars, except share and per share data)
Determined in accordance with US GAAP
Three Months Ended Six Months Ended
June 30, June 30,
2004 2005 2004 2005
Net revenue .......................................................................... $ 255,822 $ 194,035 $ 484,240 $ 375,388
Cost of revenue .................................................................... 195,847 193,591 379,690 384,658
Gross profit (loss) ................................................................ 59,975 444 104,550 (9,270)
Operating expenses:
Research and development ............................................... 32,270 27,676 62,133 54,991
Fab start-up costs ............................................................. 8,083 7,876 11,707 22,697
Sales and marketing ......................................................... 10,159 10,112 18,900 20,619
General and administrative .............................................. 10,457 10,599 16,716 19,886
Other operating expenses ................................................. 2,439 3,938 5,527 3,938
Total operating expenses .......................................... 63,408 60,201 114,983 122,131
Operating loss ...................................................................... (3,433) (59,757) (10,433) (131,401)
Equity in income (loss) of SMP ........................................... 10,444 776 21,912 (8,256)
Other income ....................................................................... 17,021 2,952 24,707 5,453
Interest expense, net ............................................................. (6,047) (8,601) (13,733) (11,027)
Foreign exchange gain, net .................................................. 334 676 295 198
Income (loss) before income taxes ....................................... 18,319 (63,954) 22,748 (145,033)
Income tax expense .............................................................. (3,032) (3,147) (5,576) (6,586)
Net income (loss) ................................................................. $ 15,287 $ (67,101) $ 17,172 $ (151,619)
Net earnings (loss) per share and ADS
Basic and diluted net earnings (loss) per share .................... $ 0.01 $ (0.03) $ 0.01 $ (0.06)
Basic and diluted net earnings (loss) per ADS ..................... $ 0.06 $ (0.27) $ 0.07 $ (0.60)
Number of shares (in millions) used in computing :
Basic net earnings (loss) per share ................................... 2,508.8 2,511.0 2,507.6 2,510.4
Effect of dilutive options .................................................. 10.2 - 11.8 -
Diluted net earnings (loss) per share ................................ 2,519.0 2,511.0 2,519.4 2,510.4
Number of ADS (in millions) used in computing :
Basic net earnings (loss) per ADS .................................... 250.9 251.1 250.8 251.0
Effect of dilutive options .................................................. 1.0 - 1.1 -
Diluted net earnings (loss) per ADS ................................ 251.9 251.1 251.9 251.0.CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
Determined in accordance with US GAAP
As of
December 31, June 30,
2004 2005
(Unaudited)
ASSETS
Cash and cash equivalents ............................................................ $ 539,399 $ 604,860
Receivables, net ........................................................................... 143,148 122,964
Inventories .................................................................................... 72,159 116,552
Other current assets....................................................................... 46,761 35,610
Total current assets ............................................................. 801,467 879,986
Investment in SMP........................................................................ 93,765 79,217
Property, plant and equipment, net ............................................... 1,914,515 2,089,621
Technology licenses, net............................................................... 121,953 115,444
Other non-current assets ............................................................... 158,312 152,233
Total assets.......................................................................... $ 3,090,012 $ 3,316,501
LIABILITIES AND SHAREHOLDERS' EQUITY
Payables ........................................................................................ $ 152,348 $ 247,065
Current installments of long-term debt ......................................... 352,985 741,571
Other current liabilities ................................................................. 118,388 217,600
Total current liabilities ........................................................ 623,721 1,206,236
Long-term debt, excluding current installments............................ 882,745 619,391
Other non-current liabilities .......................................................... 77,915 136,866
Total liabilities .................................................................... 1,584,381 1,962,493
Shareholders' equity ..................................................................... 1,505,631 1,354,008
Total liabilities and shareholders' equity ............................ $ 3,090,012 $ 3,316,501.CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US Dollars)
Determined in accordance with US GAAP
For The Six Months Ended
June 30, June 30,
2004 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) .................................................................................. $ 17,172 $ (151,619)
Adjustment to reconcile net income (loss) to net cash
provided by operating activities:
Equity in (income) loss of SMP ........................................................ (21,912) 8,256
Dividend income from SMP ............................................................. - 6,300
Depreciation and amortization .......................................................... 216,827 239,356
Foreign exchange loss, net ................................................................ 179 354
Gain on disposal of property, plant and equipment ........................... (1,126) (91)
Others, net ......................................................................................... 1,819 5,309
Changes in operating working capital:
Receivables ....................................................................................... (23,631) 14,321
Inventories ........................................................................................ (22,736) (44,393)
Other current assets ........................................................................... (3,596) (2,528)
Payables and other current liabilities ................................................ (10,361) 63,891
Net cash provided by operating activities ............................................. 152,635 139,156
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment ......................................... (392,655) (347,950)
Payments for technology licenses ......................................................... (29,223) (3,088)
Payments for deposits ........................................................................... (35,000) -
Proceeds from sale of property, plant and equipment ........................... 23,723 127
Receipts related to refund of deposits and other assets ........................ 15,000 30,612
Others .................................................................................................... - (1,562)
Net cash used in investing activities ..................................................... (418,155) (321,861)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt
Borrowings ....................................................................................... 115,000 472,124
Repayments ....................................................................................... (111,839) (343,134)
Receipts of customer deposits ............................................................... 450 120,000
Refund of customer deposits ................................................................. - (1,634)
Issuance of ordinary shares ................................................................... 1,835 1,162
Net cash provided by financing activities ............................................. 5,446 248,518
Net increase (decrease) in cash and cash equivalents ............................ (260,074) 65,813
Effect of exchange rate changes on cash and cash equivalents .............. (179) (352)
Cash and cash equivalents at the beginning of the period ..................... 905,472 539,399
Cash and cash equivalents at the end of the period ............................... $ 645,219 $ 604,860