Unleash Innovation

Unleash Innovation

2023 Fourth Quarter Earnings Conference

January 18, 2024

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Agenda
• Welcome Jeff Su, IR Director

• 4Q23 Financial Results and 1Q24 Outlook Wendell Huang, CFO

• Key Messages Wendell Huang, CFO

C.C. Wei, CEO

Mark Liu, Chairman

• Q&A

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Safe Harbor Notice

• TSMC’s statements of its current expectations are forward-looking statements subject to
significant risks and uncertainties and actual results may differ materially from those
contained in the forward-looking statements.

• Information as to those factors that could cause actual results to vary can be found in
TSMC’s 2022 Annual Report on Form 20-F filed with the United States Securities and
Exchange Commission (the “SEC”) on April 20, 2023 and such other documents as TSMC
may file with, or submit to, the SEC from time to time.

• Except as required by law, we undertake no obligation to update any forward-looking

statement, whether as a result of new information, future events, or otherwise.

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Statements of Comprehensive Income

Selected Items from Statements of Comprehensive Income

4Q23 4Q23 4Q23

4Q23 3Q23 4Q22 Over Over
Guidance 3Q23 4Q22
(In NT$ billions unless otherwise noted)

Net Revenue (US$ billions) 19.62 18.8-19.6 17.28 19.93 +13.6% -1.5%
Net Revenue 625.53 546.73 625.53 +14.4% 0.0%
Gross Margin 53.0% 51.5% -53.5% 54.3% 62.2% -1.3 ppts -9.2 ppts
Operating Expenses (71.62) (68.70) (64.54) +4.2% +11.0%
Operating Margin 41.6% 39.5% -41.5% 41.7% 52.0% -0.1 ppt -10.4 ppts
Non-Operating Items 18.07 13.87 9.63 +30.3% +87.7%
Net Income to Shareholders of the Parent Company 238.71 211.00 295.90 +13.1% -19.3%
Net Profit Margin 38.2% 38.6% 47.3% -0.4 ppt -9.1 ppts
EPS (NT Dollar) 9.21 8.14 11.41 +13.1% -19.3%
ROE 28.1% 25.8% 41.7% +2.3 ppts -13.6 ppts
Shipment (Kpcs, 12"-equiv. Wafer) 2,957 2,902 3,702 +1.9% -20.1%
Average Exchange Rate--USD/NTD 31.88 32.00 31.64 31.39 +0.7% +1.6%

* Diluted weighted average outstanding shares were 25,929mn units in 4Q23

** ROE figures are annualized based on average equity attributable to shareholders of the parent company

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4Q23 Revenue by Technology

7nm and Below Revenue

90nm 0.11/0.13um
1% 3% 0.15/0.18um
65nm 400
5% 4%
40/45nm 350
0.25um and above
4%
28nm 1% 300

Revenue (NT$B)
7% 3nm
16nm 250
15%
8% 200
7nm 5nm 150
17% 35%
100

50

-
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23

7nm 5nm 3nm

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Revenue by Technology

2023 2022
0.11/0.13um 0.11/0.13um
90nm 2% 0.15/0.18um 90nm 0.15/0.18um
65nm 1% 3%
5% 65nm 2% 6%
40/45nm 6% 0.25um and above 5% 0.25um and above
6% 1% 1%
40/45nm
3nm
7%
28nm 6%
20nm 10% 28nm 5nm
1% 10% 26%
16nm 5nm
10% 33% 16nm
7nm 13% 7nm
19% 27%

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4Q23 Revenue by Platform

Growth Rate by Platform (QoQ)

Automotive
5% DCE
IoT 2%
5% Others +27%
2%
+17%
+13%

IoT DCE Others

Smartphone HPC
43% 43% HPC Smartphone Automotive

-16%

-29%
-35%

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2023 Revenue by Platform

Growth rate by Platform (YoY)

Automotive DCE
6% 2% Others +15%
IoT
8% 3%

+0% Smartphone IoT DCE Others

Smartphone HPC
38% 43% HPC Automotive

-6%
-8%

-16%
-17%

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Balance Sheets & Key Indices

Selected Items from Balance Sheets 4Q23 3Q23 4Q22
(In NT$ b illions)
Amount % Amount % Amount %
Cash & Marketable Securities 1,687.65 30.5% 1,551.32 28.3% 1,561.49 31.4%
Accounts Receivable 201.94 3.7% 222.83 4.1% 231.34 4.7%
Inventories 250.99 4.5% 262.09 4.8% 221.15 4.4%
Long-term Investments 129.44 2.3% 116.35 2.1% 68.93 1.4%
Net PP&E 3,064.48 55.4% 3,132.66 57.1% 2,693.84 54.3%
Total Assets 5,532.37 100.0% 5,484.56 100.0% 4,964.78 100.0%
Current Liabilities 913.58 16.5% 970.04 17.7% 944.23 19.0%
Long-term Interest-bearing Debts 918.28 16.6% 937.49 17.1% 839.10 16.9%
Total Liabilities 2,049.11 37.0% 2,111.74 38.5% 2,004.29 40.4%

Total Shareholders' Equity 3,483.26 63.0% 3,372.82 61.5% 2,960.49 59.6%

Key Indices
A/R Turnover Days 31 35 36
Inventory Turnover Days 85 96 93
Current Ratio (x) 2.4 2.1 2.2
Asset Productivity (x) 0.8 0.7 1.0

* Total outstanding shares were 25,932mn units at 12/31/23

** Asset productivity = Annualized net revenue / Average net PP&E

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Cash Flows

(In NT$ billions) 4Q23 3Q23 4Q22

Beginning Balance 1,311.81 1,276.72 1,296.01

Cash from operating activities 394.83 294.65 486.88
Capital expenditures (170.16) (226.62) (336.84)
Cash dividends (77.80) (71.30) (71.30)
Bonds payable 9.80 9.80 5.80
Investments and others (3.05) 28.56 (37.74)
Ending Balance 1,465.43 1,311.81 1,342.81

Free Cash Flow* 224.67 68.03 150.04

* Free cash flow = Cash from operating activities – Capital expenditures

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2023 Financial Highlights

2023 2022 YoY
(In NT$ billions unless otherwise noted)

Net Revenue (US$ billions) 69.30 75.88 -8.7%

Net Revenue 2,161.74 2,263.89 -4.5%
Gross Margin 54.4% 59.6% -5.2 ppts
Operating Margin 42.6% 49.5% -6.9 ppts
Income before Tax 979.17 1,144.19 -14.4%
EPS - Diluted (NT$) 32.34 39.20 -17.5%

Operating Cash Flow 1,241.97 1,610.60 -22.9%

Capital Expenditures 949.82 1,082.67 -12.3%
Free Cash Flow (FCF) 292.15 527.93 -44.7%
Cash Dividends 291.72 285.24 +2.3%

Cash & Marketable Securities 1,687.65 1,561.49 +8.1%

ROE 26.2% 39.8% -13.6 ppts

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 Recap of Recent Major Events Unleash Innovation

• TSMC Announces Dr. Mark Liu Not to Participate in Next Board of Directors Election (2023/12/19)

• WaferTech Celebrates its Name Change to TSMC Washington (2023/12/15)

• TSMC 2023 Supply Chain Management Forum Presents Awards to Outstanding Suppliers (2023/12/07)

• TSMC Board of Directors Approved NT$3.50 Cash Dividend for the Third Quarter of 2023 and Set March
18 as Ex-Dividend Date, March 24 as the Record Date and April 11, 2024 as the Distribution Date
(2023/11/14)

• Please visit TSMC's website (https://www.tsmc.com) and Market Observation Post System (https://mops.twse.com.tw) for details and other announcements

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https://www.tsmc.com
invest@tsmc.com

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