TSMC
Annual Report 2018

Plain-text annual report

TSE: 2330 NYSE: TSM TSMC Annual Report 2018 (I) Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw TSMC annual report is available at http://www.tsmc.com/english/investorRelations/annual_reports.htm Printed on March 12, 2019 TSMC Vision, Mission & Core Values 1 5 Letter to Shareholders 3 Operational Highlights Vision Our vision is to be the most advanced and largest technology and foundry services provider to fabless companies and IDMs, and in partnership with them, to forge a powerful competitive force in the semiconductor industry. To realize our vision, we must have a trinity of strengths: 1. be a technology leader, competitive with the leading IDMs 2. be the manufacturing leader 3. be the most reputable, service-oriented and maximum-total-benefits silicon foundry Mission Our mission is to be the trusted technology and capacity provider of the global logic IC industry for years to come. Core Values Integrity Integrity is our most basic and most important core value. We tell the truth. We believe the record of our accomplishments is the best proof of our merit. Hence, we do not brag. We do not make commitments lightly. Once we make a commitment, we devote ourselves completely to meeting that commitment. We compete to our fullest within the law, but we do not slander our competitors and we respect the intellectual property rights of others. With vendors, we maintain an objective, consistent, and impartial attitude. We do not tolerate any form of corrupt behavior or politicking. When selecting new employees, we place emphasis on the candidates’ qualifications and character, not connections or access. Commitment TSMC is committed to the welfare of customers, suppliers, employees, shareholders, and society. These stakeholders all contribute to TSMC’s success, and TSMC is dedicated to serving their best interests. In return, TSMC hopes all these stakeholders will make a mutual commitment to the Company. Innovation Innovation is the wellspring of TSMC’s growth, and is a part of all aspects of our business, from strategic planning, marketing and management, to technology and manufacturing. At TSMC, innovation means more than new ideas, it means putting ideas into practice. Customer Trust At TSMC, customers come first. Their success is our success, and we value their ability to compete as we value our own. We strive to build deep and enduring relationships with our customers, who trust and rely on us to be part of their success over the long term. 71 71 72 77 80 82 87 89 89 95 100 115 115 2 Company Profile 2.1 An Introduction to TSMC 2.2 Market/Business Summary 2.3 Organization 2.4 Board Members 2.5 Management Team 3 Corporate Governance 3.1 Overview 3.2 Board of Directors 3.3 Major Decisions of Shareholders’ Meeting and Board Meetings 5.1 Business Activities 5.2 Technology Leadership 5.3 Manufacturing Excellence 5.4 Customer Trust 5.5 Human Capital 5.6 Material Contracts 6 Financial Highlights and Analysis 6.1 Financial Highlights 6.2 Financial Status and Operating Results 6.3 Risk Management 7 Corporate Social Responsibility 9 9 9 16 18 24 33 33 34 40 3.4 Taiwan Corporate Governance Implementation as 7.1 Overview Required by Taiwan Financial Supervisory Commission 42 7.2 Environmental, Safety and Health (ESH) Management 120 3.5 Code of Ethics and Business Conduct 3.6 Regulatory Compliance 3.7 Internal Control System Execution Status 3.8 Status of Personnel Responsible for the Company’s Financial and Business Operation 46 50 52 53 7.3 TSMC Education and Culture Foundation 7.4 TSMC Charity Foundation 7.5 TSMC i-Charity 129 130 131 7.6 Social Responsibility Implementation Status as Required by the Taiwan Financial Supervisory Commission 132 3.9 Information Regarding TSMC’s Independent Auditor 53 3.10 Material Information Management Procedure 55 8 Subsidiary Information and Other Special Notes 135 8.1 Subsidiaries 8.2 Status of TSMC Common Shares and ADRs Acquired, Disposed of, and Held by Subsidiaries 8.3 Special Notes 135 139 139 4 Capital and Shares 4.1 Capital and Shares 4.2 Issuance of Corporate Bonds 4.3 Preferred Shares 4.4 Issuance of American Depositary Shares 4.5 Status of Employee Stock Option Plan 4.6 Status of Employee Restricted Stock 4.7 Status of New Share Issuance in Connection with Mergers and Acquisitions 4.8 Financing Plans and Implementation 57 57 64 66 66 68 68 68 68 Letter to Shareholders Dear Shareholders, 1 2018 was a year of important milestones for TSMC. 2018 was our seventh consecutive year of record revenue, net income and earnings per share. We ramped our 7-nanometer technology to high volume successfully, at least a full year ahead of any other semiconductor player. We have strong customer engagement and tape out activity across diversified applications. For the first time in history, a most advanced logic technology, as an open platform, was available for the whole semiconductor industry. With the strongest technology portfolio, the widest coverage of customers and the largest addressable market, we are poised in a better position than ever to catch the future growth opportunities for TSMC. In today’s world, we see digital computation becoming increasingly ubiquitous. We see massive devices being connected, generating higher volumes of data. We see many new applications and products are all embedded with AI (artificial intelligence). Semiconductors are becoming ever more pervasive. The need for higher performance, lower power and a greater degree of system integration will drive further product advancements that TSMC will help enable. The rapid ramp up of our 7-nanometer technology in 2018 allowed us to capture all leading smartphone launches and many more mobile and high performance computing applications. In 2018, our second generation 7-nanometer technology (N7+) entered risk production and is scheduled for volume production in 2019. N7+ will be the industry’s first commercially available EUV (extreme ultraviolet) process technology. At the same time, we continue our advanced technology development on 5-nanometer and target for volume production in the first half of 2020. Our advanced packaging solutions, with follow-on generations of InFOs (Integrated Fan-Out) and CoWoS® (Chip on Wafer on Substrate), continue to lead the industry in providing the most advanced system-level solutions. Highlights of TSMC’s accomplishments in 2018: • Total wafer shipments increased 2.9 percent from 2017 to reach 10.8 million 12-inch equivalent wafers. • Advanced technologies (28-nanometer and beyond) accounted for 63 percent of total wafer revenue, up from 58 percent in 2017. • We deployed 261 distinct process technologies, and manufactured 10,436 products for 481 customers. • TSMC’s market share in the total semiconductor foundry segment rose successively during the last nine years and reached 56 percent in 2018. 3 2018 Financial Performance Consolidated revenue reached NT$1,031.47 billion, an increase of 5.5 percent over NT$977.45 billion in 2017. Net income was NT$351.13 billion and diluted earnings per share were NT$13.54. Both increased 2.3 percent from the 2017 level of NT$343.11 billion net income and NT$13.23 diluted EPS. TSMC generated net income of US$11.64 billion on consolidated revenue of US$34.20 billion, which increased 3.3 percent and 6.5 percent respectively from the 2017 level of US$11.27 billion net income and US$32.11 billion consolidated revenue. Gross profit margin was 48.3 percent compared with 50.6 percent in 2017, while operating profit margin was 37.2 percent compared with 39.4 percent a year earlier. Net profit margin was 34.0 percent, a decrease of 1.1 percentage points from 2017’s 35.1 percent. TSMC further raised its cash dividend payment to NT$8.0 per share for 2017 profit distribution from NT$7.0 in the prior year. Technological Developments Our 5-nanometer technology development is well on-track for risk production in the second quarter of 2019. We have made significant progress in transistor and interconnect performance, yield learning and reliability qualification. Customer product tape-outs are scheduled in the first half of 2019, with volume production next year. We expect to see a significant number of customers leverage our 5-nanometer to establish leadership positions for their products. Furthermore, our 3-nanometer technology has entered the full development stage. TSMC has been offering advanced packaging technology to integrate advanced SoCs, high bandwidth memories, and integrated passive device to enhance system-level performance. In 2018, we offered the 4th generation InFO solutions with finer interconnect line width and spacing to enable both mobile and high performance computing products. TSMC’s CoWoS® offers a platform for heterogeneous integration with increasing interposer sizes. In May 2018, we announced TSMC-SoICTM (System-on-Integrated Chips) solution, a clear industry-leading 3D IC packaging solution, integrating multiple heterogeneous chiplets with close proximity to deliver even higher system performance. TSMC’s ecosystem, the Open Innovation Platform® (OIP), is an important factor in empowering customers to unleash their innovations with fast time-to-market. In October 2018, we launched our virtual design environment (VDE) that allows our customers to conduct their design activities in a secure and safe cloud environment that significantly increases their design productivity. We continued to work with our ecosystem partners to expand our libraries and silicon IP portfolio to more than 20,000 items. More than 9,000 technology files and over 300 process design kits are In 2018, we continued to increase our R&D investment to US$2.85 billion to expand our technology offerings and to available to customers via TSMC-Online which saw more than 100,000 customer downloads in 2018. extend our technology leadership. We leveraged our leadership in technology at 28-nanometer and developed 22-nanometer technologies to further enhance performance and density in 2018. Our 22ULP (ultra-low power) and 22ULL (ultra-low leakage) technologies are suitable for a wide range of applications in IoT (Internet of Things), RF (Radio Frequency) and wearable devices. We also extended our 16-nanometer technologies to 12FFC, which provides further enhancement in power, performance, and density. On specialty technologies, 16FFC RF has proven to be able to provide the foundry’s first volume produced 5G mobile network chips based on FinFET in 2018. In 2018, we successfully ramped up our 7-nanometer technology and set a new industry record in production ramp. More than 40 customer product tape-outs have been completed and we expect to receive more than 100 additional product tape-outs in 2019. The 7nm customer products include mobile devices, game consoles, AI, CPUs, GPUs and networking devices. Our second generation 7nm (N7+) technology entered risk production in August 2018, and will be the industry’s first commercially available EUV process technology. Corporate Developments After having led the company for over 31 years, TSMC’s Founder, Dr. Morris Chang, retired from the Company after the Annual Shareholders’ Meeting on June 5, 2018. At the meeting, TSMC shareholders elected a new Board of Directors, which then convened to elect Dr. Mark Liu as Chairman and Dr. C.C. Wei as Chief Executive Officer (CEO) and Vice Chairman. 4 5 Capacity Plan Wafer Sales Plan 10% 8% 2017 2018 2% 2019 11-12 2017 42% 2018 37% 12-13 12-13 2019 30-40% 60-70% 58% 63% TSMC’s four core values of Integrity, Commitment, Innovation and Customer Trust remain as the cornerstone of our Company culture. They will continue to guide our every aspect in the way we do business as we navigate towards future opportunities. We will continue to commit to world-class governance, sustainability, and good returns to our shareholders. We thank you for your trust and commitment to us, and look forward to a long and profitable future together. Annual Growth Rate Capacity: million 12-inch equivalent wafers > 28nm wafer revenue ≤ 28nm wafer revenue 2019 wafer shipment is expected to be 10-11 million 12-inch equivalent wafers. Honors and Awards TSMC received recognition for achievements in innovation, business information disclosure, corporate governance, sustainability, investor relations and overall excellence in management from organizations including Forbes, Fortune Magazine, CommonWealth Magazine, The Nikkei, Thomson Reuters, PricewaterhouseCoopers, RobecoSAM and the Taiwan Stock Exchange. TSMC continued to receive multiple awards from Institutional Investor Magazine and IR Magazine. We were chosen once again as a component of the Dow Jones Sustainability Indices, becoming the only semiconductor company to be selected for 18 consecutive years. TSMC was also rated “Prime” by Institutional Shareholder Services, and “Leader” by Sustainalytics for our performance in sustainability. Meanwhile, we remained a major component in both MSCI ESG and FTSE4Good Emerging Index, reflecting our ongoing commitment to sustainability and corporate social responsibility. Outlook 2019 is a year we face business headwinds from weakening global macroeconomic conditions and trade tensions between countries. TSMC will be working on the fundamentals of our business and will accelerate our technology differentiation. We will also strengthen our cybersecurity and proprietary information protection. When the clouds pass, we resolve to emerge as a stronger semiconductor force. We believe the ongoing megatrend of 5G and AI will fuel the future growth of the semiconductor industry. With the broadest and most advanced technology portfolios, the relentless pursuit of manufacturing excellence and trusted customer relationships, TSMC is best-positioned to lead the industry to provide the most advanced and comprehensive solutions for future applications in the semiconductor sector. Mark Liu Chairman C.C. Wei Chief Executive Officer 6 7 Company Profile 2.1 An Introduction to TSMC 2.2 Market/Business Summary 2 Established in 1987 and headquartered in Hsinchu Science Park, Taiwan, TSMC pioneered the pure-play foundry business model by focusing solely on manufacturing customers’ products. By choosing not to design, manufacture or market any semiconductor products under its own name, the Company ensures that it never competes directly with its customers. Today, TSMC is the world’s largest semiconductor foundry, manufacturing 10,436 different products using 261 distinct technologies for 481 different customers in 2018. With a large and diverse global customer base, TSMC- manufactured semiconductors cover a wide range of applications in the computer, communications, consumer, industrial and standard segments and are used in a variety of end markets including mobile devices, high performance computing, automotive electronics and the Internet of Things (IoT). Strong diversification helps to smooth fluctuations in demand, which, in turn, helps the Company maintain higher levels of capacity utilization and profitability. Annual capacity of the manufacturing facilities managed by TSMC and its subsidiaries exceeded 12 million 12-inch equivalent wafers in 2018. These facilities include three 12-inch wafer GIGAFAB® fabs, four 8-inch wafer fabs, and one 6-inch wafer fab – all in Taiwan – as well as one 12-inch wafer fab at a wholly owned subsidiary, TSMC Nanjing Company Limited, and two 8-inch wafer fabs at wholly owned subsidiaries, WaferTech in the United States and TSMC China Company Limited. TSMC provides customer service, account management and engineering services through offices in North America, Europe, Japan, China, and South Korea. At the end of 2018, the Company and its subsidiaries employed more than 48,000 people. The Company is listed on the Taiwan Stock Exchange (TWSE) under ticker number 2330, and its American Depositary Shares (ADSs) are traded on the New York Stock Exchange (NYSE) under the symbol TSM. 2.2.1 TSMC Achievements In 2018, TSMC maintained its leading position in the foundry segment of the global semiconductor industry, with an estimated market share of 56%, despite intense competition from both established players and relatively new entrants to the business. Leadership in advanced process technologies is a key factor in the Company’s strong market position. In 2018, 63% of TSMC’s wafer revenue came from advanced manufacturing processes (defined as geometries of 28nm and smaller), up from 58% in 2017. TSMC offers the foundry segment’s broadest technology portfolio and continues to invest in advanced and specialty technologies to provide customers more added value. This is a differentiating competitive advantage for TSMC. In 2018, the Company either developed or introduced the following: Logic Technology • 5nm FinFET (fin field-effect transistor) technology development continued to progress smoothly, and volume production of this leading-edge technology is planned for the first half of 2020. Compared to 7nm FinFET technology, 5nm FinFET offers over 15% speed improvement or 30% power reduction. In addition, 5nm FinFET technology is optimized upfront for both mobile applications and high performance computing devices. • 7nm FinFET Plus (N7+) technology entered risk production in August 2018 as planned as TSMC received customer product tape-outs and completed product verification. N7+ is the first commercially available EUV-enabled foundry process technology in the world. Compared to 7nm FinFET technology, N7+ offers approximately 20% greater logic density and 10% power reduction. 9 • 7nm FinFET technology entered volume production in the second quarter of 2018. Customer adoption was strong and with more than 40 product tape-outs received by the end of 2018. With its superior value proposition, these tape- outs came from a wide spectrum of applications including mobile devices, game consoles, artificial intelligence, central processing units, graphic processing units and networking devices. Compared to 16nm FinFET technology, 7nm FinFET offers approximately a 35% speed improvement or a 65% power reduction, as well as more than three times the logic density. In addition, 7nm FinFET technology can be optimized for mobile applications and high performance computing devices. 7nm FinFET technology also set a new Company record in terms of production ramp-up speed. • 12nm FinFET Compact technology (12FFC), which entered volume production in 2017, is TSMC’s latest family offering following 16nm FinFET Plus technology (16FF+) and 16nm FinFET Compact technology (16FFC). 12FFC drives die size and power consumption to the best levels of the foundry’s 16/14nm technologies. 16FF+, which first entered volume production in 2015, is aimed at customers in high performance market segments, including mobile, server, graphics, and cryptocurrency. The cost-effective 16FFC, in volume production since 2016, can maximize die cost scaling by incorporating optical shrink and process simplification at the same time. Both 16FFC and 12FFC can satisfy customer needs in mainstream and ultra-low-power (ULP) market segments, including low-end to mid-range mobile phones, consumer electronics, digital TVs and the IoT. With innovative standard cell structures, 12FFC can also be used in more advanced applications. So far, 16FF+/16FFC/12FFC have received a total of more than 300 product tape-outs, most of which have been first-time silicon successes. • 22nm ultra-low leakage (22ULL) technology development was completed and entered risk production in fourth quarter of 2018 as planned to support IoT and wearable devices applications. New ULL device and ULL SRAM (static random access memory) can provide lower power consumption compared to 40ULP and 55ULP solutions. • 22nm ultra-low power (22ULP) technology was developed based on TSMC’s industry-leading 28nm technology and completed all process qualifications in the fourth quarter of 2018. Compared to 28nm high performance compact (28HPC) technology, 22ULP provides 10% area reduction with more than 30% speed gain or more than 30% power reduction for applications including image processing, digital TVs, set-top boxes, smartphones and consumer products. • 28nm high performance compact plus (28HPC+) technology had accumulated more than 230 product tape-outs as of the end of 2018. 28HPC+ technology provides further performance enhancement or power reduction in mainstream smartphone, digital TV, storage, audio and SoC (System-on- Chip) applications. Compared to 28HPC technology, 28HPC+ technology improves device performance by 15% or reduces leakage by 50%. • 40nm ULP technologies received over 30 product tape-outs in 2018. These technologies target the IoT and wearable devices applications, such as wireless connectivity, application processors and sensor hub applications. In addition, TSMC uses its leading 40nm ULP low Vdd (Low Operating Voltage) technology to produce the world’s lowest energy consumption solutions for IoT devices and for wearable connected devices. Still under development are new enhanced analog devices that will enrich the 40ULP platform to support customers for more analog design needs in the future. • 55nm ultra-low power (55ULP) technology volume production continued and accumulated more than 60 customer tape- outs as of 2018. Compared to 55nm Low Power (55LP) process, 55ULP can significantly increase battery life for IoT applications. In addition, it integrates RF (radio frequency) and eFlash (embedded flash) to simplify customers’ SoC designs. Specialty Technology • 16FF+ technology began production for customer applications in the automotive industry in 2017. 16FFC Foundation IPs (intellectual properties) passed the Automotive Electronic Council AEC-Q100 Grade-1 qualification and were certified for functional safety standard ISO 26262 ASIL-B. In addition, TSMC 9000A was introduced for automotive IP management to complete the automotive ecosystem with third-party IP vendors. TSMC continues to develop 7nm automotive foundation IPs, and plans to have them qualified for AEC-Q100 Grade-2 by the second half of 2019. • 16FFC RF led the foundry to start volume production of the fifth generation (5G) mobile network chips for customers in the first half of 2018. This technology has been extended to the next generation Wireless Local Area Network (WLAN 802.11ax) and Millimeter Wave (mmWave) applications, as well as to wireless connectivity applications such as smartphones using the 5G mobile network. As TSMC continues to advance 16FFC RF technology, this more cost- effective technology will be used in more applications such as radar and AR/VR, to reduce chip power consumption and die size. • 22nm RF (22ULP/ULL RF) technology extended its support for ultra-low leakage devices, magnetic random access memory (MRAM), and resistive random access memory (RRAM) in 2018, in addition to high fT (cut-off frequency) devices. This further supports chip development for 5G mmWave mobile communication and IoT applications. • 28nm RF (28HPC+ RF) technology delivered the foundry’s first RF process design kit (PDK) in 2018, providing support for 110GHz mmWave and 150°C automotive grade and so on for 5G mmWave RF and automotive radar product designs. • 40nm ULP eFlash began volume production in 2016 for applications such as wireless MCU (Microcontroller Unit), IoT devices, wearable devices, and high performance MCU. In 2018, this technology passed AEC-Q100 automotive Grade-1 qualification in 2018 for both high-speed and low-power IPs. • 40nm ULP embedded resistive random access memory (RRAM) technology, which began risk production at the end of 2017, completed consumer grade qualification test for 10,000 cycles of endurance in 2018. This technology is fully CMOS (Complementary Metal Oxide Semiconductor) logic compatible for PDK and IP re-use for applications including wireless MCU, IoT and wearable devices. • 22nm ULL magnetic random access memory (MRAM) technology progressed well, demonstrated reflow capability and passed JEDEC 168 hours high-temperature operating life (HTOL) reliability validation at the end of 2018. Through IP customization, MRAMs can serve various applications, such as artificial intelligence and eFlash replacement for MCU. • 12-inch 0.13µm BCD (Bipolar-CMOS-DMOS) Plus technology, which began production in the second half of 2017, saw remarkable wafer shipment growth in 2018. Compared to the prior 0.13µm BCD technology, this technology provides superior performance competitiveness and cost effectiveness for power management applications in high-end smartphones. • 0.18µm BCD third generation, which started volume production in the second half of 2017, passed AEC-Q100 Grade-1 qualification in 2018 and is expected to pass AEC-Q100 Grade-0 qualification in 2019. This technology provides superior cost competitiveness compared to the second generation BCD. • GaN on silicon technology, which began volume production in 2017, saw remarkable wafer shipment growth in 2018. TSMC continues to develop new GaN technologies, including GaN IC with driver integration, automotive grade GaN, and GaN RF power amplifier, to support customers’ diverse system chip designs for various market applications. • Setting the trend for the smartphone organic light emitting diode (OLED) panel development, TSMC launched a world- leading 40nm high-voltage (HV) technology. This technology provides world-leading logic and SRAM density for customers to design more competitive OLED drivers. • As near infrared (NIR) technology is critical to machine vision, TSMC focused on improving its CMOS image sensor (CIS) NIR QE (quantum efficiency) to >35%. This breakthrough greatly reduces total system power consumption and increases sensor sensitivity, enabling more innovative applications of machine vision in smartphones, automotive, industrial, and home devices. • TSMC successfully delivered the world’s first CMOS-MEMS (Micro-electromechanical Systems) monolithic capacitive barometer, which features sensitivity to altitude changes as small as 5 cm and fits in a package of slightly less than 1 mm2, for various system applications, including personal activity tracking and indoor navigation. 10 11 Advanced Packaging Technology • InFO-PoP (Integrated Fan-Out Package-on-Package) technology, which integrates 7nm SoC (System-on-Chip) and DRAM (dynamic random access memory) for advanced mobile device applications, began volume production in the second quarter of 2018. • CoWoS® (Chip on Wafer on Substrate) technology that heterogeneously integrates a 7nm SoC and the second generation high bandwidth memory (HBM2) successfully completed qualification and began production in the second half of 2018 for high performance computing applications. • In addition to CoWoS®, InFO-oS (Integrated Fan-Out on Substrate) technology integrating multiple 16nm SoC chips began production in the first quarter of 2018. • Fine pitch Cu bump for flip chip packaging on 7nm silicon started volume production for both advanced mobile device and high performance computing applications in the first quarter of 2018. Moreover, 16nm silicon in WLCSP (wafer level chip scale packaging) technologies started volume production in the fourth quarter of 2018 for IoT applications, in addition to the existing ≥28nm products for high-end smartphones. 2.2.2 Market Overview TSMC estimates that the worldwide semiconductor market excluding memory in 2018 was US$334 billion in revenue, representing a healthy 8% year-over-year growth, after a strong year in 2017. In the foundry segment of the semiconductor industry, total revenue was US$61 billion in 2018, up 6% year- over-year and slightly below the 8% growth achieved in 2017. 2.2.3 Industry Outlook, Opportunities and Threats Industry Demand and Supply Outlook Back-to-back years of growth in the foundry segment were driven mainly by healthy market demand. For 2019, TSMC forecasts the total semiconductor market excluding memory growth to be flat or slightly down. Over the longer term, however, fueled by increasing semiconductor content in electronic devices, continuing market share gains by fabless companies, gradual increases in integrated device manufacturer (IDM) outsourcing, and expanding in-house application-specific integrated circuits (ASIC) from systems companies, the Company expects foundry segment revenue to outpace the mid-single- digit compound annual growth rate projected for the overall semiconductor market excluding memory from 2017 through 2022. As an upstream supplier in the semiconductor supply chain, the foundry segment is tightly correlated with the market health of the three “C” sectors, communications, computers and consumer electronics. • Communications For the communications sector, smartphone unit shipments were down 4% in 2018, the first decline in smartphone history, due to the high penetration in several developed countries and China, as well as to prolonged replacement cycle. TSMC projects the low-single-digit decline to continue in the smartphone market in 2019. Still, the continuing transition to 4G/LTE, LTE-Advanced and 5G NR (new radio), together with improved performance, longer battery life, biosensors and more AI features will all continue to propel smartphone sales. Plus, the increasing popularity of low-end smartphones in emerging countries will also drive growth in this sector. Low-power IC is an essential requirement among handset manufacturers, and SoC design, in which TSMC is already the leader, is the preferred solution due to its optimized cost, power and form factor (device footprint and thickness) potential. The migration to advanced process technologies will continue to accelerate, spurred by the appetite for higher performance to run AI applications, various complex software routines and higher resolution video. • Computer After a 3% decline in 2017, the computer sector’s overall unit shipment fell marginally by 1% year-over-year in 2018. The decline was due to personal computer’s prolonged replacement cycle and consumer usage moving towards mobile computing, largely offset by business PC demand and positive growth in server units. The computer sector is projected to continue its low-single-digit unit decline in 2019. However, several factors are expected to help buoy demand in this sector, including increasing form varieties, the business adoption of new operating systems, and consumer replacements of aging PCs; as well as growing high performance applications such as gaming PC, machine learning and blockchain. All these require lower power and higher performance CPU, GPU, HDD Controller, and ASICs, which will drive the computer sector towards richer silicon content and more advanced process technologies. • Consumer The consumer sector’s unit shipments fell 4% in 2018. TVs and TV game consoles showed positive growth; set-top boxes declined due to worldwide economic uncertainties, while the rest of the sector – MP3 players, digital cameras and hand-held game consoles – continued to be cannibalized by smartphones. A continued drop in consumer electronics is expected in 2019. Certain sub-segments such as 4K (UHD) TVs and set-top boxes should achieve positive growth within the sector, while next generation 8K TVs will also be launched. In addition, AI functions such as picture quality improvement and voice control will be increasingly incorporated in TVs. With its broad array of advanced technology offerings, TSMC expects to take advantage of these market trends. Supply Chain The electronics industry features a long and complex supply chain, the elements of which are correlated and highly interdependent. At the upstream manufacturing level, IC vendors need to have sufficient and flexible supply deliveries to handle fluctuating demand dynamics. Foundry vendors play an important role to ensure the health and effectiveness of the supply chain. As a leader in the foundry segment, TSMC provides advanced technologies and large-scale capacity to complement the innovations created along the downstream chain. 2.2.4 TSMC Position, Differentiation and Strategy Position TSMC is the worldwide semiconductor foundry leader for both advanced and specialty process technologies, commanding a 56% market share in 2018. Net revenue by geography, based mainly on the country in which customers are headquartered, was: 62% from North America; 9% from the Asia Pacific region, excluding China and Japan; 17% from China; 7% from Europe, the Middle East and Africa; and 5% from Japan. Net revenue by end-product application was: 14% from the computer sector, 56% from communications, 7% from consumer products, and 23% from industrial and standard products. Differentiation TSMC’s leadership position is based on three defining competitive strengths and a business strategy rooted in the Company’s heritage. The Company distinguishes itself from the competition through its technology leadership, manufacturing excellence and customer trust. As a technology leader, TSMC is consistently first among dedicated foundries to provide next-generation, leading-edge technologies. The Company has also established its leadership on more mature technology nodes by applying the lessons learned on leading-edge technology development to enrich its specialty technologies. Beyond process technology, TSMC has established frontend and backend integration capabilities that create the optimum power/performance/area “sweet spot” and result in faster time-to-production. TSMC, well known for its industry-leading manufacturing management capabilities, extends that leadership through its Open Innovation Platform® and Grand Alliance initiatives. The TSMC Open Innovation Platform® initiative quickens the pace of innovation in the semiconductor design community and among its ecosystem partners, as well as the Company’s own IP, design implementation and design for manufacturing capabilities, process technology and backend services. A key element is a set of ecosystem interfaces and collaborative components initiated and supported by TSMC that more efficiently empower innovation throughout the supply chain and drive the creation and sharing of new revenue and profits. The TSMC Grand Alliance is one of the most powerful forces for innovation in the semiconductor industry, bringing together customers, electronic design automation (EDA) partners, IP partners, and key equipment and material suppliers at a new, higher level of collaboration. Its objective is to help customers, alliance members and TSMC win business and increase competitiveness. The foundation for customer trust is a commitment TSMC made when it opened for business in 1987 to never compete with its customers. As a result, TSMC has never owned or marketed a single semiconductor product, but instead has focused all of its resources on becoming the trusted foundry for its customers. 12 13 Strategy TSMC is confident that its differentiating strengths will enable it to prosper from the foundry segment’s many attractive growth opportunities. In light of the rapid growth in four major markets, namely mobile, high performance computing, automotive electronics, and the Internet of Things, and the fact that focus of customer demand is shifting from process-technology- centric to product-application-centric, TSMC has constructed four different technology platforms to provide customers with the most comprehensive and competitive logic process technologies, specialty technologies, IPs, and packaging and testing technologies to shorten customers’ time-to-design and time-to-market. Mobile platform: TSMC offers leading process technologies such as 5nm FinFET, 7nm FinFET Plus, 7nm FinFET, 10nm FinFET, 16nm FinFET Plus (16FF+), and 20nm SoC logic process technologies, as well as comprehensive IPs for premium product applications to further enhance chip performance, reduce power consumption, and decrease chip size. From low-end to high-end product applications, TSMC offers leading process technologies such as 12nm FinFET Compact technology (12FFC), 16nm FinFET Compact technology (16FFC), 28nm high performance compact (28HPC), 28nm high performance mobile compact plus (28HPC+), and 22nm ultra-low power (22ULP) logic process technologies, in addition to comprehensive IPs, to satisfy customer needs for high performance and low-power chips. Furthermore, for premium, high-end, mid-end, and low-end product applications, TSMC also offers the most competitive, leading-edge specialty technologies, including RF, embedded flash memory, emerging memory technologies, power management, sensors, and display chips as well as advanced packaging technologies such as the leading Integrated Fan-Out (InFO) technology. High performance computing platform: TSMC provides customers with leading process technologies such as 5nm FinFET, 7nm FinFET Plus, 7nm FinFET and 16nm FinFET, as well as comprehensive IPs including high-speed interconnect IPs, to meet customers’ high performance computing and communication requirements. TSMC also offers multiple advanced packaging technologies such as CoWoS®, InFO, and 3D IC technologies to enable homogeneous and heterogeneous chip integration to meet customers’ performance, power, and system footprint requirements. TSMC will continue to optimize its high performance computing platform offerings to help customers capture market growth driven by data explosion and application innovation. Automotive electronics platform: TSMC offers industry’s leading automotive technology to support the three megatrends – safety, connectivity and green – in the automotive industry. TSMC is also the industry leader in providing a robust automotive IP ecosystem, which covers 16nm FinFET first and extends to 7nm FinFET, for advanced driver-assistance systems (ADAS), the most computation demanding system in the automotive industry. In addition to the advanced logic technology platform, TSMC offers broad and competitive specialty technologies, including 40nm embedded flash memory, 28nm and 22nm mmWave RF, high sensitivity CMOS Image/LiDAR sensors, and power management IC technologies. All these automotive technologies are applied to TSMC’s automotive process qualification standards based on AEC-Q100 standards. Internet of Things platform: TSMC provides industry’s leading and comprehensive ultra-low power (ULP) technology platform to support innovations for IoT and wearable applications. TSMC’s industry-leading offerings, including 55nm ULP, 40nm ULP, 28nm ULP, 22nm ULP/Ultra-low leakage (ULL), have been widely adopted by various IoT and wearable applications. TSMC also extends its low Vdd (Low Operating Voltage) offerings for extreme low-power applications. To support the ever-increasing demand in IoT edge computing and wireless connectivity, TSMC also offers the most competitive and comprehensive leading- edge specialty technologies in RF, embedded flash memory, emerging memory, sensors, and display chips, as well as multiple advanced packaging technologies including leading InFO technology. TSMC continually strengthens its core competitiveness and deploys both short-term and long-term technology and business development plans, and assists customers in taking on the challenges of short product cycles and intense competition in the electronic products market to meet ROI and growth objectives. • Short-Term Semiconductor Business Development Plan 1. Substantially ramp up the business and sustain advanced technology market share with continually increased capacity and R&D investments. 2. Maintain mainstream technology market share by expanding business to new customers and market segments with off- the-shelf technologies. 3. Continue to enhance the competitive advantages of TSMC’s platforms in mobile, high performance computing, automotive electronics, and IoT design ecosystems so as to expand TSMC’s dedicated foundry services in these product applications. 4. Further expand TSMC’s business and service infrastructure into emerging and developing markets. • Long-Term Semiconductor Business Development Plan 1. Continue developing leading-edge technologies at a pace consistent with Moore’s Law. 2. Broaden specialty business contributions by further developing derivative technologies. 3. Provide more integrated services, covering system-level integration design, design technology definition, design tool preparation, wafer processing, and backend services, all of which deliver more value to customers through optimized solutions. 14 15 2.3 Organization 2.3.1 Organization Chart Audit Committee Compensation Committee Shareholders’ Meeting Board of Directors, Chairman, Vice Chairman As of 02/28/2019 CEO Office Internal Audit Operations, Research and Development, Europe & Asia Sales, North America, Business Development, Corporate Planning Organization, Corporate Strategy Office, Quality and Reliability, Information Technology / Materials Management and Risk Management, Finance, Legal, Human Resources Information Technology • Integration of the Company’s technology and business IT systems; infrastructure development, communication services and assurance of IT security and service quality, enabling organizations to apply Big Data and Machine Learning to improve the Company’s productivity and accelerate R&D delivery Materials Management and Risk Management • Procurement, warehousing, import and export, and logistics support; also environmental protection, industrial safety, occupational health, and risk management Internal Audit • Inspection and review of TSMC’s internal control system, its adequacy in design and effectiveness in operation with independent risk assessment to ensure compliance with TSMC’s policies and procedures as well as with external regulations Finance and Spokesperson • Corporate finance, accounting, operation resources planning and corporate communications; with the head of the organization also serving as Company spokesperson Legal • Corporate legal affairs including regulatory compliances, commercial transactions, patents and management of other intellectual properties, litigation, etc. Human Resources • Personnel, management and organizational development, as well as proprietary information protection and physical security management 2.3.2 Major Corporate Functions Operations • Operations including all fabs in Taiwan and overseas, and manufacturing technology development; product development, specialty technology development, advanced packaging technology development, production and service integrations, and support and service for customers in Asia, Europe, and North America Research and Development • Advanced technology development, exploratory research, as well as design and technology platform development Europe & Asia Sales • Sales, market development, technical marketing, field technical support and service, and business operations for customers in Europe and Asia, including China, Japan, Korea and Taiwan North America • Sales, market development, field technical solutions and business operations for customers in North America Business Development • Business development identifies market directions and new applications that shape the technology roadmap and portfolios for the Company. It also provides key support in strengthening customer relationship along with the company branding management Corporate Planning Organization • Planning for production and demand; the integration of business processes, corporate pricing, market analysis and forecasting Corporate Strategy Office • Corporate strategy formation and implementation Quality and Reliability • Assurance of the quality and reliability of the Company’s products via resolving reliability issues at new technology development stage, improving and managing product quality at production stage, providing solutions to resolve customers’ quality related issues and providing services for advanced materials and failure analysis 16 17 2.4 Board Members 2.4.1 Information Regarding Board Members Title/Name (Note 1) Gender Nationality or Place of registration Date Elected Term Expires Date First Elected Male U.S. 06/05/2018 06/04/2021 06/08/2017 12,913,114 0.05% 12,913,114 0.05% Shareholding When Elected Current Shareholding Spouse & Minor Shareholding Selected Education, Past Positions & Current Positions at Non-profit Organizations Shares % Shares % Shares - % - As of 02/28/2019 Selected Current Positions at TSMC and Other Companies Bachelor Degree in Electrical Engineering, National Taiwan University Master Degree and Ph.D. in Electrical Engineering & Computer Science, University of California, Berkeley None Former President, Worldwide Semiconductor Manufacturing Corp. Former Senior Vice President, Advanced Technology Business, TSMC Former Senior Vice President, Operations, TSMC Former Executive Vice President and Co-Chief Operating Officer, TSMC Former President and Co-CEO, TSMC Male R.O.C. 06/05/2018 06/04/2021 06/08/2017 7,179,207 0.03% 7,179,207 0.03% 261 0.00% Bachelor and Master Degrees in Electrical Engineering, National Chiao Tung University Ph.D. in Electrical Engineering, Yale University CEO, TSMC Male R.O.C. 06/05/2018 06/04/2021 05/13/1997 34,472,675 0.13% 34,472,675 0.13% 132,855 0.00% Former Senior Vice President, Chartered Semiconductor Manufacturing Ltd. Former Senior Vice President, Mainstream Technology Business, TSMC Former Senior Vice President, Business Development, TSMC Former Executive Vice President and Co-Chief Operating Officer, TSMC Former President and Co-CEO, TSMC Chairman, Taiwan Semiconductor Industry Association (TSIA) Director, TSMC Charity Foundation Bachelor Degree in Electrical Engineering, National Chengkung University Master Degree in Electrical Engineering, National Chiao Tung University Ph.D. in Electrical Engineering, National Chengkung University Honorary Ph.D., National Chiao Tung University Honorary Ph.D., National Tsing Hua University Former President, Vanguard International Semiconductor Corp. Former President, TSMC Former Deputy CEO, TSMC Former Vice Chairman, TSMC Former Director, National Culture and Arts Foundation, R.O.C. Chairman, TSMC Education and Culture Foundation Director, Cloud Gate Culture and Arts Foundation Chairman of: - TSMC China Company Ltd. (a nonpublic company) - Global UniChip Corp. Vice Chairman, Vanguard International Semiconductor Corp. Independent Director, Chairman of Audit Committee & Compensation Committee member, Acer Inc. 06/05/2018 06/04/2021 12/10/1986 1,653,709,980 6.38% 1,653,709,980 6.38% Female R.O.C. 11/07/2017 (Note 6) Chairman Mark Liu (Note 2) Vice Chairman C.C. Wei (Note 3) Director F.C. Tseng (Note 4) Director National Development Fund, Executive Yuan (Note 5) 　Representative: 　Mei-ling Chen - - - - - - - - - - - - - LL.B., National Chengchi University LL.M., National Taiwan University LL.D., National Chengchi University None Former Director General, Department of Legal Affairs, Ministry of Justice, R.O.C. Former Chairperson of Legal Affairs Committee & concurrently Chairperson of Petitions and Appeals Committee, Executive Yuan, R.O.C. Former Deputy Secretary-General, Executive Yuan, R.O.C. Former Secretary-General, Tainan City Government, R.O.C. Former Secretary-General, Executive Yuan, R.O.C. Former Associate Professor, Department of Law, Chinese Culture University Minister without Portfolio, Executive Yuan & concurrently Minister, National Development Council, R.O.C. - Bachelor Degree in Engineering, Loughborough University Honours Degree in Engineering, Loughborough University Former Chairman and CEO, ICL Plc Former CEO and Chairman of the Executive Committee, British Telecommunications Plc Former Vice President, the British Quality Foundation Former Director, Mentor Graphics Corp., U.S. Former Director, Sony Corp., Japan Former Director, L.M. Ericsson, Sweden Former Chairman, GlobalLogic Inc., U.S. (a nonpublic company) Former Senior Advisor to Hampton Group, London Fellow of the Royal Academy of Engineering Chair of Council and Senior Pro-Chancellor, Loughborough University, UK Board Member, EastWest Institute, New York Chairman, NXP Semiconductors N.V., the Netherlands Member, The Longreach Group Advisory Board, HK Board Mentor, CMi, UK Senior Advisor to Alix Partners, London (Continued) 19 Independent Director Sir Peter L. Bonfield Male UK 06/05/2018 06/04/2021 05/07/2002 18 　 Title/Name (Note 1) Gender Nationality or Place of registration Date Elected Term Expires Date First Elected Shares % Shares % Shareholding When Elected Current Shareholding Spouse & Minor Shareholding Independent Director Stan Shih Male R.O.C. 06/05/2018 06/04/2021 04/14/2000 1,480,286 0.01% 1,480,286 0.01% Shares 16,116 % 0.00% Selected Education, Past Positions & Current Positions at Non-profit Organizations Selected Current Positions at TSMC and Other Companies BSEE & MSEE, National Chiao Tung University Honorary EE Ph.D., National Chiao Tung University Honorary Doctor of Technology, The Hong Kong Polytechnic University Honorary Fellowship, University of Wales, Cardiff, UK Honorary Doctor of International Law, Thunderbird, American Graduate School of International Management, U.S. Director & Honorary Chairman, Acer Inc. Director of: - Egis Technology Inc. - Nan Shan Life Insurance Co., Ltd. (a non-listed company) Independent Director Kok-Choo Chen Female R.O.C. 06/05/2018 06/04/2021 06/09/2011 - - - - 5,120 0.00% Co-Founder, Chairman Emeritus, Acer Group Former Chairman & CEO, Acer Group Former Director, Qisda Corp. Former Director, Wistron Corp. Former Chairman, National Culture and Arts Foundation, R.O.C. Director, Public Television Service Foundation, R.O.C. Council member of Asian Corporate Governance Associate (ACGA) Chairman, Stans Foundation Chairman, Cloud Gate Culture and Arts Foundation Inns of Court School of Law, England Barrister-at-law, England Advocate & Solicitor, Singapore Attorney-at-law, California, U.S. Lawyer, Tan, Rajah & Cheah, Singapore, 1969-1970 Lawyer, Sullivan & Cromwell, New York, U.S., 1971-1974 Lawyer, Heller, Erhman, White & McAuliffe, San Francisco, California, U.S., 1974-1975 Partner, Ding & Ding Law Offices, Taiwan, 1975-1988 Partner, Chen & Associates Law Offices, Taiwan, 1988-1992 Vice-President, Echo Publishing, Taiwan, 1992-1995 President, National Culture and Arts Foundation, R.O.C., 1995-1997 Senior Vice-President & General Counsel, TSMC, 1997-2001 Founder & Executive Director of Taipei Story House, 2003-2015 Advisor, Executive Yuan, R.O.C., 2009-2016 Director, National Culture and Arts Foundation, R.O.C., 2011-2016 Chairman, National Performing Arts Center, 2014-2017 Lecturer, Nanyang University, Singapore, 1970-1971 Associate Professor, Soochow University, 1981-1998 Chair Professor, National Tsing Hua University, 1999-2002 Professor, National Chengchi University, 2001-2004 Professor, Soochow University, 2001-2008 Founder and Executive Director, Museum207 (located in Taipei) Director, Republic of China Female Cancer Foundation Independent Director Michael R. Splinter Male U.S. 06/05/2018 06/04/2021 06/09/2015 - - - - - - Bachelor and Master Degrees in Electrical Engineering, University of Wisconsin Madison Honorary Ph. D in Engineering, University of Wisconsin Madison Former Executive Vice President of Technology and Manufacturing group, Intel Corp. Former Executive Vice President of Sales and Marketing, Intel Corp. Former CEO, Applied Materials, Inc. Former Chairman, Applied Materials, Inc. Former Director, The NASDAQ OMX Group, Inc. Former Director, Silicon Valley Leadership Group Former Director, Semiconductor Equipment and Materials International (SEMI) Director, University of Wisconsin Foundation Chairman of the Board, US-Taiwan Business Council Remarks: 1. No member of the Board of Directors held TSMC shares by nominee arrangement. 2. No member of the Board of Directors had a spouse or relative within two degrees of consanguinity serving as a manager or director at TSMC. Note 1: Founder and former Chairman Dr. Morris Chang retired after the Annual Shareholders’ Meeting on June 5, 2018. Mr. Thomas J. Engibous resigned as an Independent Director due to health reasons, effective January 1, 2019. Note 2: Dr. Mark Liu was elected by the Board of Directors as Chairman on June 5, 2018. Note 3: Dr. C.C. Wei was elected by the Board of Directors as Chief Executive Officer (CEO) and Vice Chairman on June 5, 2018. Note 4: Former Vice Chairman Dr. F.C. Tseng is Director effective June 5, 2018. Note 5: Major Shareholder of TSMC’s Director that is an Institutional Shareholder. Director that is an Institutional Shareholder of TSMC Top 10 Shareholders National Development Fund, Executive Yuan Not Applicable Major Institutional shareholders of National Development Fund: Not Applicable.
Note 6: Ms. Mei-ling Chen was appointed as the representative of National Development Fund on November 7, 2017. - Chinese Television System Inc. (a non-listed company) - Digitimes Inc. (a nonpublic company) None Chairman of the Board, NASDAQ, Inc. Director of: - Meyer Burger Technology Ltd., Switzerland - Pica8, Inc., U.S. (a nonpublic company) - Gogoro Inc., Cayman Islands (a nonpublic company) General Partner, WISC Partners LP 20 21 2.4.2 Remuneration Paid to Directors (Note 1) Director's Remuneration Base Compensation (A) Severance Pay and Pensions (B) (Note 6) Compensation to Directors (C) Allowances (D) (Note 7) (A+B+C+D) as a % of Net Income From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities Compensation Earned by a Director Who is an Employee of TSMC or of TSMC’s Consolidated Entities Base Compensation, Bonuses, and Allowances (E) (Note 7) Severance Pay and Pensions (F) (Note 6) Employees’ Profit Sharing Bonus (G) From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities Cash Stock (Fair Market Value) Cash Stock (Fair Market Value) Unit: NT$ Title/Name Founder and Former Chairman Morris Chang (Note 2) Chairman Mark Liu (Note 3) Vice Chairman C.C. Wei (Note 4) Director F.C. Tseng (Note 5) Director National Development Fund, Executive Yuan Representative: Mei-ling Chen Independent Director Sir Peter L. Bonfield Independent Director Stan Shih Independent Director Thomas J. Engibous Independent Director Kok-Choo Chen Independent Director Michael R. Splinter 11,416,772 11,416,772 216,289 216,289 122,068,200 122,068,200 1,023,339 1,023,339 0.0384% 0.0384% - - - - - 8,173,235 8,173,235 144,710 144,710 140,520,500 140,520,500 1,104,330 1,104,330 0.0427% 0.0427% 45,328,784 45,328,784 92,520 92,520 41,152,680 - - - - - - - - - - 124,932,402 124,932,402 237,230 237,230 111,412,930 4,881,362 4,881,362 121,950 121,950 9,600,000 9,600,000 1,738,731 1,738,731 0.0047% 0.0047% - - - - - - - - - - - - - - - - - - - - - - - - 9,600,000 9,600,000 14,494,240 14,494,240 12,000,000 12,000,000 14,494,240 14,494,240 12,000,000 12,000,000 14,494,240 14,494,240 - - - - - - - - - - - - 0.0027% 0.0027% 0.0041% 0.0041% 0.0034% 0.0034% 0.0041% 0.0041% 0.0034% 0.0034% 0.0041% 0.0041% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total 24,471,369 24,471,369 482,949 482,949 349,271,420 349,271,420 3,866,400 3,866,400 0.1077% 0.1077% 170,261,186 170,261,186 329,750 329,750 152,565,610 *Other than disclosure in the above table, Directors remunerations earned by providing services (e.g. providing consulting services as a non-employee) to TSMC and all consolidated entities in the 2018 financial statements: Advisor Fee to Dr. F.C. Tseng NT$9,347,601. Note 1: Remuneration policies, standards/packages, procedures, the linkage to operating performance and future risk exposure: The base compensation for the Chairman, Vice-Chairman and directors are determined in accordance with the procedures set forth in TSMC’s Articles of Incorporation. The Articles of Incorporation also provides that the compensation to directors shall be no more than 0.3% of annual profits and directors who also serve as executive officers of TSMC are not entitled to receive compensation to directors. The distribution of compensation to directors shall be made in accordance with TSMC’s “Rules for Distribution of Compensation to Directors”. Note 2: Founder and Former Chairman Dr. Morris Chang retired after the Annual Shareholders’ Meeting on June 5, 2018. Note 3: Dr. Mark Liu was elected by the Board of Directors as Chairman on June 5, 2018. The data of “Director's Remuneration” is for the period from June 5 to December 31. The data of “Compensation Earned by a Director Who is an Employee of TSMC” is for the period from January 1 to June 4 when he served as President and Co-CEO of TSMC. Note 4: Dr. C.C. Wei was elected by the Board of Directors as Chief Executive Officer (CEO) and Vice Chairman on June 5, 2018. Note 5: Former Vice Chairman Dr. F.C. Tseng is Director effective June 5, 2018. The data of “Base Compensation (A)” and “Severance Pay and Pensions (B)” are for the period from January 1 to June 5 when he served as Vice Chairman. Note 6: Pensions funded according to applicable law. In accordance with TSMC Procedure of Retirement, the pension payment to Dr. Morris Chang amounts to NT$76,171,995. Note 7: The above-mentioned figures include expenses for Company cars and gasoline reimbursement, but do not include compensation paid to Company drivers (totaled NT$5,796,206). Note 8: Total remuneration paid to the directors from TSMC and from all consolidated entities in 2017, including their employee compensation, both accounted for 0.2435% of 2017 net income. (A+B+C+D+E+F+G) as a % of Net Income (Note 8) From TSMC From All Consolidated Entities 0.0384% 0.0384% 0.0674% 0.0674% 0.0674% 0.0674% Compensation Paid to Directors from Non-consolidated Affiliates - - - 0.0047% 0.0047% 6,776,858 0.0027% 0.0027% 0.0041% 0.0041% 0.0034% 0.0034% 0.0041% 0.0041% 0.0034% 0.0034% 0.0041% 0.0041% - - - - - - 0.1997% 0.1997% 6,776,858 - - - - - - - - - - - - 41,152,680 111,412,930 - - - - - - - 152,565,610 - - - - - - - - - - - 22 23 2.5 Management Team 2.5.1 Information Regarding Management Team Title Name (Note 1) Chief Executive Officer C.C. Wei Gender Nationality On-board Date (Note 2) Male R.O.C. 02/01/1998 Shareholding Spouse & Minor Shares 7,179,207 % 0.03% Shares 261 % 0.00% Female R.O.C. 06/01/1999 4,511,080 0.02% 2,230,268 0.01% Male R.O.C. 07/01/2004 1,444,127 0.01% Male U.S. 11/14/1997 - - - - - - Male R.O.C. 01/01/1987 6,922,122 0.03% 2,193,107 0.01% Male R.O.C. 11/14/1994 1,000,419 0.00% - - Male R.O.C. 01/01/1987 12,518,018 0.05% 1,073,387 0.00% Male R.O.C. 02/11/1987 2,553,947 0.01% 160,844 0.00% Male R.O.C. 03/01/2000 1,925,180 0.01% 1,103,253 0.00% Female R.O.C. 10/01/2003 420,709 0.00% - - Male R.O.C. 12/15/1997 352,532 0.00% 60,802 0.00% TSMC Shareholding by Nominee Arrangement (Shares) Shares - - - - - - - - - - - % - - - - - - - - - - - As of 02/28/2019 Managers Who are Spouses or within Second-degree Relative of Consanguinity to Each Other Title None Name None Relation None Education and Selected Past Positions Selected Current Positions at Other Companies Ph.D., Electrical Engineering, Yale University, U.S. President and Co-Chief Executive Officer, TSMC Executive Vice President and Co-Chief Operating Officer, TSMC Senior Vice President, Business Development, TSMC Senior Vice President, Mainstream Technology Business, TSMC Senior Vice President, Chartered Semiconductor Manufacturing Ltd. Master, Business Administration, National Taiwan University, Taiwan Senior Director, Accounting, TSMC Vice President & CFO, TI-Acer Semiconductor Manufacturing Corp. Ph.D., Solid State Physics and Surface Chemistry, University of California, Berkeley, U.S. Vice President, Research and Development, TSMC Vice President, Manufacturing Technology Operations, TSMC Vice President, Advanced Technology Business, TSMC Vice President, Operations II, TSMC Director, Advanced Technology Development and CTM Plant Manager, Intel Corp. Bachelor, Engineering Technology, United States Military Academy at West Point, U.S. Chief Executive Officer, TSMC North America President of TSMC North America Vice President of TSMC North America Account Management Master, Electrical Engineering, National Cheng Kung University, Taiwan Vice President, Product Development Operations, TSMC Vice President, Advanced Technology and Business, TSMC Senior Director, Product Engineering and Services, TSMC Ph.D., Electrical Engineering, University of California, Los Angeles, U.S. Vice President, Technology Development, TSMC TSMC Senior Director, R&D Platform I Division, TSMC Bachelor, Science, National Changhua University of Education, Taiwan Vice President, Mainstream Fabs and Manufacturing Technology Operations, TSMC Senior Director, Mainstream Fabs Operations, TSMC Master, Chemical Engineering, National Cheng Kung University, Taiwan Vice President, 300mm Fabs Operations, TSMC Senior Director, 300mm fabs Operations, TSMC Ph.D., Material Science, Massachusetts Institute of Technology, U.S. Senior Director, Assembly Test Technology & Service, TSMC Vice President, Operations, Vanguard International Semiconductor Corp. Ph.D., Materials Science and Engineering, Cornell University, U.S. Senior Director, Corporate Planning Organization, TSMC None None None Director and/or Supervisor, TSMC subsidiaries President, TSMC subsidiaries None None None None None None None Director, TSMC subsidiary None None None None None None None None None Director Wayne Yeh brother in law None None None Director, TSMC subsidiaries None None None None None None None None None None None None Ph.D., Electrical Engineering, Syracuse University, U.S. Vice President, Design and Technology Platform, TSMC Senior Director, Design and Technology Platform, TSMC Director, TSMC subsidiaries Director, TSMC affiliate President, TSMC subsidiaries Female R.O.C. 03/20/1995 700,285 0.00% 69,112 0.00% 384,000 0.00% Master of Comparative Law, School of Law, University of Iowa Attorney-at-law, Taiwan Associate General Counsel, TSMC Senior Associate, Taiwan International Patent and Law Office (TIPLO) Director and/or Supervisor, TSMC subsidiaries None None None (Continued) 25 Senior Vice President, Chief Financial Officer/ Spokesperson Finance, Europe & Asia Sales Lora Ho Senior Vice President Research and Development/ Technology Development Wei-Jen Lo Senior Vice President Corporate Strategy Office Rick Cassidy Senior Vice President Operations/ Product Development Y.P. Chin Senior Vice President Research and Development/ Technology Development Y.J. Mii Senior Vice President Information Technology and Materials Management & Risk Management J.K. Lin Senior Vice President Operations/ Fab Operations J.K. Wang Vice President Quality and Reliability N.S. Tsai Vice President Corporate Planning Organization Irene Sun Vice President Research and Development/ Technology Development Cliff Hou Vice President and General Counsel Legal Sylvia Fang 24 Title Name (Note 1) Vice President Human Resources Connie Ma Vice President Operations/ Fab Operations Y.L. Wang Vice President Research and Development/ Integrated Interconnect & Packaging Doug Yu Vice President and TSMC Fellow Operations/ Product Development/ More-than-Moore Technologies Alexander Kalnitsky Vice President Business Development Kevin Zhang Vice President and TSMC Fellow Operations/ Product Development T.S. Chang (Note 3) Vice President Research and Development/ Technology Development/ N3 Platform Development Division Michael Wu (Note 3) Vice President Research and Development/ Technology Development/ Pathfinding Min Cao (Note 3) Vice President Research and Development/ Corporate Research H.-S. Philip Wong (Note 4) Vice President Operations/ Product Development/ Advanced Packaging Technology and Service Marvin Liao (Note 5) Vice President Operations/ Fab Operations/ Fab 15B Y.H. Liaw (Note 6) Gender Nationality On-board Date (Note 2) Female R.O.C. 06/01/2014 Shareholding Spouse & Minor Shares 117,000 % 0.00% Shares - % - Male R.O.C 06/01/1992 218,535 0.00% 1,135,529 0.00% Male R.O.C. 12/28/1994 225,000 0.00%- Male U.S. 06/15/2009 Male U.S. 11/01/2016 - - - - Male R.O.C. 02/06/1995 200,781 0.00% - - - - - - - - Male R.O.C. 12/09/1996 478,501 0.00% 194,943 0.00% Male U.S. 07/29/2002 363,152 0.00% 4,470 0.00% Male U.S. 07/02/2018 - - Male R.O.C. 06/06/2002 50,485 0.00% Male R.O.C. 08/03/1988 370,000 0.00% - - - - - - TSMC Shareholding by Nominee Arrangement (Shares) Shares % - - - - - - - - - - - - - - - - - - Education and Selected Past Positions Selected Current Positions at Other Companies EMBA, International Business Management, National Taiwan University Director of Human Resources, TSMC Senior Vice President of Global Human Resources, Trend Micro Inc. None Managers Who are Spouses or within Second-degree Relative of Consanguinity to Each Other Title None Name None Relation None Ph.D., Electrical Engineering, National Chiao Tung University, Taiwan Vice President, Technology Development, TSMC Vice President, Fab 14B Operations, TSMC Senior Director, Fab 14B Operations, TSMC PhD, Materials Engineering, Georgia Institute of Technology, USA Senior Director of Integrated Interconnect & Packaging Division in R&D, TSMC PhD, Electrical Engineering, Carleton University, Canada Senior Director of More-than-Moore Technologies Division in R&D, TSMC PhD, Electrical Engineering, Duke University, USA Vice President, Design and Technology Platform, TSMC Vice President, Technology and Manufacturing Group, Intel Corp. PhD, Electrical Engineering, National Tsing Hua University Vice President, Fab 12B Operations, TSMC Senior Director, Fab 12B Operations, TSMC PhD, Electrical Engineering, University of Wisconsin-Madison, USA Senior Director of N3 Platform Development Division in R&D, TSMC PhD, Physics, Stanford University, USA Senior Director of Pathfinding Division in R&D, TSMC PhD, Electrical Engineering, Lehigh University, U.S. Willard R. and Inez Kerr Bell Professor in the School of Engineering, Stanford University Senior Manager, IBM Research Director, TSMC subsidiary Director, TSMC affiliate None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None 220,000 0.00% PhD, Materials Science, University of Texas-Arlington, U.S. Senior Director, Backend Technology and Service Operations, TSMC Vice President, Chartered Semiconductor Manufacturing Ltd. 420,000 0.00% Master of Chemical Engineering, National Tsing Hua University Senior Director, Fab 15B Operations, TSMC Note 1: Senior Vice President and Chief Information Officer Dr. Stephen T. Tso retired, effective March 1, 2018. Vice President and Chief Technology Officer Dr. Jack Sun retired, effective August 1, 2018. Vice President M.C. Tzeng retired, effective November 1, 2018. Vice President Dr. Been-Jon Woo retired, effective January 1, 2019. Note 2: On-board date means the official date joining TSMC. Note 3: Dr. T.S. Chang, Dr. Michael Wu and Dr. Min Cao were promoted to Vice President, effective February 13, 2018. Note 4: Dr. H.-S. Philip Wong was promoted to Vice President, effective August 14, 2018. Note 5: Dr. Marvin Liao was promoted to Vice President, effective November 13, 2018. Note 6: Mr. Y.H. Liaw was promoted to Vice President, effective February 19, 2019. 26 27 2.5.2 Compensation Paid to CEO and Vice Presidents (Note 1) Unit: NT$ Salary (A) Severance Pay and Pensions (B) (Note 7) Bonuses and Allowances (C) (Note 8) Employees’ Profit Sharing Bonus (D) Title Chief Executive Officer Name C.C. Wei Senior Vice President, Chief Financial Officer/ Spokesperson Lora Ho Senior Vice President and Chief Information Officer Stephen T. Tso (Note 2) From TSMC 9,489,190 5,546,520 From All Consolidated Entities 9,489,190 5,546,520 From TSMC 237,230 138,663 From All Consolidated Entities 237,230 138,663 From TSMC From All Consolidated Entities From TSMC From All Consolidated Entities Cash Stock (Fair Market Value) Cash Stock (Fair Market Value) 115,443,212 115,443,212 111,412,930 46,733,828 46,733,828 45,165,372 Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Vice President Vice President and Chief Technology Officer Vice President Vice President Vice President Vice President Vice President and General Counsel Vice President Vice President Vice President Vice President and TSMC Fellow Vice President Vice President and TSMC Fellow Vice President Vice President Vice President Vice President Vice President Total (Note 10) Wei-Jen Lo Rick Cassidy Y.P. Chin Y.J. Mii J.K. Lin J.K. Wang M.C. Tzeng (Note 2) Jack Sun (Note 2) N.S. Tsai Irene Sun Cliff Hou Been-Jon Woo (Note 2) 83,846,866 96,724,358 2,089,955 2,430,964 528,905,242 614,642,918 489,485,137 Sylvia Fang Connie Ma Y.L. Wang Doug Yu Alexander Kalnitsky Kevin Zhang T.S. Chang (Note 3) Michael Wu (Note 3) Min Cao (Note 3) H.-S. Philip Wong (Note 4) Marvin Liao (Note 5) Y.H. Liaw (Note 6) (A+B+C+D) as a % of Net Income (Note 9) From TSMC From All Consolidated Entities 0.0674% 0.0278% 0.0674% 0.0278% Compensation Received from Non-consolidated Affiliates - - 0.3145% 0.3427% 100,000 - - - 111,412,930 45,165,372 489,485,137 - - - 98,882,576 111,760,068 2,465,848 2,806,857 691,082,282 776,819,958 646,063,439 - 646,063,439 - 0.4097% 0.4379% 100,000 Note 1: Compensation policy, standards/packages, procedures, the linkage to operating performance and future risk exposure: The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation Committee then submitted to the Board of Directors for approval. Note 2: Senior Vice President and Chief Information Officer Dr. Stephen T. Tso retired, effective March 1, 2018. Vice President and Chief Technology Officer Dr. Jack Sun retired, effective August 1, 2018. Vice President M.C. Tzeng retired, effective November 1, 2018. Vice President Dr. Been-Jon Woo retired, effective January 1, 2019. Note 3: Dr. T.S. Chang, Dr. Michael Wu and Dr. Min Cao were promoted to Vice President, effective February 13, 2018. Note 4: Dr. H.-S. Philip Wong was promoted to Vice President, effective August 14, 2018. Note 5: Dr. Marvin Liao was promoted to Vice President, effective November 13, 2018. Note 6: Mr. Y.H. Liaw was promoted to Vice President, effective February 19, 2019. Therefore, his 2018 compensation data is not disclosed. Note 7: Pensions funded according to applicable law. In accordance with TSMC Procedure of Retirement, the pension payment to Dr. Stephen T. Tso, Mr. M.C. Tzeng, Dr. Jack Sun and Dr. Been-Jon Woo amounts to NT$60,776,545. Note 8: The above-mentioned figures include the expense for the employees' cash bonuses distributed in June, August, November 2018 & February 2019, Company cars and gasoline reimbursement, but do not include compensation paid to Company drivers (totaled NT$351,672). Note 9: Total compensation paid to the executive officers from TSMC in 2017 accounted for 0.4820% of 2017 net income. Total compensation paid to the executive officers from all consolidated entities in 2017 accounted for 0.5109% of 2017 net income. Note 10: These amounts do not include Dr. Mark Liu’s compensation for the period from January 1 to June 4 when he served as President and Co-CEO of TSMC (please refer to “2.4.2 Remuneration Paid to Directors” on page 23 of this Annual Report for the “Compensation Earned by a Director Who is an Employee of TSMC”). Including Dr. Mark Liu’s January 1 to June 4 compensation as President and Co-CEO, the total compensation paid to the executive officers from TSMC in 2018 accounted for 0.4343% of 2018 net income, and the total compensation paid to the executive officers from all consolidated entities in 2018 accounted for 0.4625% of 2018 net income. Compensation Paid to CEO and Vice Presidents NT$0 ~ NT$1,999,999 NT$2,000,000 ~ NT$4,999,999 NT$5,000,000 ~ NT$9,999,999 From TSMC Rick Cassidy None Marvin Liao NT$10,000,000 ~ NT$14,999,999 H.-S. Philip Wong NT$15,000,000 ~ NT$29,999,999 Stephen T. Tso 2018 From All Consolidated Entities and Non-consolidated Affiliates None None Marvin Liao H.-S. Philip Wong Stephen T. Tso NT$30,000,000 ~ NT$49,999,999 Jack Sun, Irene Sun, Been-Jon Woo, Connie Ma, Y.L. Wang, Doug Yu, T.S. Chang, Michael Wu, Min Cao Jack Sun, Irene Sun, Been-Jon Woo, Connie Ma, Y.L. Wang, Doug Yu, T.S. Chang, Michael Wu, Min Cao NT$50,000,000 ~ NT$99,999,999 Lora Ho, Y.P. Chin, Y.J. Mii, M.C. Tzeng, N.S. Tsai, J.K. Lin, J.K. Wang, Cliff Hou, Sylvia Fang, Alexander Kalnitsky, Kevin Zhang Lora Ho, Rick Cassidy, Y.P. Chin, Y.J. Mii, M.C. Tzeng, N.S. Tsai, J.K. Lin, J.K. Wang, Cliff Hou, Sylvia Fang, Alexander Kalnitsky, Kevin Zhang Over NT$100,000,000 C.C. Wei, Wei-Jen Lo Total 26 C.C. Wei, Wei-Jen Lo 26 28 29 2.5.3 Employees’ Profit Sharing Bonus Paid to Management Team Unit: NT$ Title Chief Executive Officer Senior Vice President, Chief Financial Officer/ Spokesperson Name C.C. Wei Lora Ho Senior Vice President and Chief Information Officer Stephen T. Tso (Note 1) Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Vice President Vice President and Chief Technology Officer Vice President Vice President Vice President Vice President Vice President and General Counsel Vice President Vice President Vice President Vice President and TSMC Fellow Vice President Vice President and TSMC Fellow Vice President Vice President Vice President Vice President Vice President Total (Note 6) Wei-Jen Lo Rick Cassidy Y.P. Chin Y.J. Mii J.K. Lin J.K. Wang M.C. Tzeng (Note 1) Jack Sun (Note 1) N.S. Tsai Irene Sun Cliff Hou Been-Jon Woo (Note 1) Sylvia Fang Connie Ma Y.L. Wang Doug Yu Alexander Kalnitsky Kevin Zhang T.S. Chang (Note 2) Michael Wu (Note 2) Min Cao (Note 2) H.-S. Philip Wong (Note 3) Marvin Liao (Note 4) Y.H. Liaw (Note 5) Note 1: Senior Vice President and Chief Information Officer Dr. Stephen T. Tso retired, effective March 1, 2018. Vice President and Chief Technology Officer Dr. Jack Sun retired, effective August 1, 2018. Vice President M.C. Tzeng retired, effective November 1, 2018. Vice President Dr. Been-Jon Woo retired, effective January 1, 2019. Note 2: Dr. T.S. Chang, Dr. Michael Wu and Dr. Min Cao were promoted to Vice President, effective February 13, 2018. Note 3: Dr. H.-S. Philip Wong was promoted to Vice President, effective August 14, 2018. Note 4: Dr. Marvin Liao was promoted to Vice President, effective November 13, 2018. Note 5: Mr. Y.H. Liaw was promoted to Vice President, effective February 19, 2019. Therefore, his 2018 compensation data is not disclosed. Note 6: Excluding the amount NT$41,152,680 paid to Dr. Mark Liu for the period from January 1 to June 4 when he served as President and Co-CEO of TSMC (please refer to “2.4.2 Remuneration Paid to Directors” on page 23 of this Annual Report for the “Compensation Earned by a Director Who is an Employee of TSMC”). Including Dr. Mark Liu’s January 1 to June 4 compensation as President and Co-CEO, the total amount paid to the executive officers in 2018 was NT$687,216,119, accounted for 0.1957% of 2018 net income. Stock (Fair Market Value) Cash Total Employees’ Profit Sharing Bonus Total Employees’ Profit Sharing Bonus Paid to Management Team as a % of Net Income - - - - 111,412,930 45,165,372 111,412,930 45,165,372 0.0317% 0.0129% 489,485,137 489,485,137 0.1394% 646,063,439 646,063,439 0.1840% 30 31 Corporate Governance 3.1 Overview 3 TSMC advocates and acts upon the principles of operational transparency and respect for shareholder rights. We believe that the basis for successful corporate governance is a sound and effective Board of Directors. In line with this principle, the TSMC Board delegates various responsibilities and authority to two Board Committees, Audit Committee and Compensation Committee. Each Committee has a written charter approved by the Board. Each Committee’s chairperson regularly reports to the Board on the activities and actions of the relevant committee. 2018 Corporate Governance Awards and Ratings Organization Awards Dow Jones Sustainability Indices (DJSI) Dow Jones Sustainability World Index for the 18th consecutive year Dow Jones Sustainability Emerging Markets Index MSCI ESG Indexes FTSE4Good Index Thomson Reuters Nikkei IR Magazine FORTUNE MSCI ACWI ESG Leaders Index component MSCI ACWI SRI Index component FTSE4Good Emerging Index component FTSE4Good TIP Taiwan ESG Index component Top 100 Global Technology Leaders Nikkei Asia 300 Indexes Best Investor Relations (Awards by region/Taiwan) Fortune Global 500 Institutional Investor Magazine Most Honored Company (Technology/Semiconductors) – All-Asia Forbes World’s Best Employers CommonWealth Magazine Corporate Social Responsibility Award Asiamoney Sustainalytics Overall Most Outstanding Company in Taiwan Most Outstanding Company in Taiwan – Semiconductors & Semiconductor Equipment Sector Rated an ESG “Leader” within the Semiconductor Industry Taiwan Institute of Sustainable Energy The Most Prestigious Sustainability Awards – Top Ten Domestic Corporates Taiwan Top 50 Corporate Responsibility Report Awards – IT & IC Manufacturing Industry Taiwan Stock Exchange Top 5% in Corporate Governance Evaluation of Listed Companies for the 4th consecutive year 33 3.2 Board of Directors Board Structure After having led the Company for over 31 years, TSMC’s Founder, Dr. Morris Chang, retired from the Company after the Annual Shareholders’ Meeting on June 5, 2018. At the meeting, TSMC shareholders elected a new Board of Directors, which then convened to elect Dr. Mark Liu as Chairman and Dr. C.C. Wei as Chief Executive Officer (CEO) and Vice Chairman, completing the transition of responsibilities. As of the end of 2018, TSMC’s Board of Directors consists of nine distinguished members with a great breadth of experience as world-class business leaders or professionals. We deeply rely on them for their diverse knowledge, personal perspectives, and solid business judgment. Five of those nine members are Independent Directors: former British Telecommunications Chief Executive Officer, Sir Peter L. Bonfield; Co-Founder, Chairman Emeritus of the Acer Group, Mr. Stan Shih; former Texas Instruments Inc. Chairman of the Board, Mr. Thomas J. Engibous; former Chairman of National Performing Arts Center and former Advisor of Executive Yuan, R.O.C., Ms. Kok-Choo Chen; and former Chairman of Applied Materials, Inc., Mr. Michael R. Splinter. The number of Independent Directors exceeds 50% of the total number of Directors, and two Directors are female. Mr. Thomas J. Engibous resigned as Independent Director, Audit Committee member and Compensation Committee member of TSMC due to health reasons, effective January 1, 2019. There will be a by-election for one Independent Director at the 2019 Annual Shareholders’ Meeting. The Board approved the nomination of Moshe N. Gavrielov as a candidate for Independent Director at its meeting in the first quarter of 2019. The number of Independent Directors will continue to exceed 50% of the total number of Directors. Board Responsibilities Inheriting the spirit of TSMC’s Founder, Dr. Morris Chang’s philosophy on corporate governance, under the leadership of Chairman Dr. Mark Liu and CEO & Vice Chairman Dr. C.C. Wei, TSMC’s Board of Directors takes a serious and forthright approach to its duties and is a dedicated, competent and independent Board. The Board’s primary duty is to supervise the Company’s compliance with relevant laws and regulations, financial transparency, timely disclosure of material information, and maintaining of the highest integrity. TSMC’s Board of Directors strives to perform these responsibilities through its Audit Committee and the Compensation Committee, the hiring of a financial expert consultant for the Audit Committee, and coordination with our Internal Audit department. The second duty of the Board of Directors is to evaluate the management’s performance and to appoint and dismiss officers of the Company when necessary. TSMC’s management has maintained a healthy and functional communication with the Board of Directors, has been devoted in executing guidance of the Board, and is dedicated in running the business operations, all to achieve the best interests for TSMC shareholders. The third duty of the Board of Directors is to resolve important, concrete matters, such as capital appropriations, investment activities, dividends, etc. The fourth duty of the Board of Directors is to provide guidance to the management team of the Company. Quarterly, TSMC’s management reports to the Board on a variety of subjects. The management also reviews the Company’s business strategies with the Board and updates TSMC’s Board on the progress of those strategies, obtaining Board guidance as appropriate. Selection and Election of Directors TSMC envisions the membership of its esteemed Board of Directors to be composed of highly ethical professionals with the necessary knowledge, experience and understanding from diverse backgrounds. TSMC envisions its Board to be composed of as many independent directors as possible, and the independence of each independent director candidate is also considered and assessed under relevant laws. Therefore, TSMC composes its Board with world-class candidates who are/were international or local business leaders in the high-tech industry, prestigious academics or other professionals excelling in their chosen field of expertise. Directors shall be elected pursuant to the candidate nomination system specified in Article 192-1 of the R.O.C. Company Law. The tenure of office for Directors shall be three years. The independence of each independent director candidate is also considered and assessed under relevant law such as the Taiwan “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”. Under R.O.C. law, in which TSMC was incorporated, any shareholders holding one percent or more of our total outstanding common shares may nominate their own candidate to stand for election as a Board member. This democratic mechanism allows our shareholders to become involved in the selection and nomination process of Board candidates. The final slate of candidates is put to the shareholders for voting at the relevant annual shareholders’ meeting. There are no limits on the number of terms that a director may serve. We believe the Company benefits from the contributions of directors who have over their years of dedicated service acquired unique insights into the operations and financial developments of the Company. The Company reviews the appropriateness of each director’s continued service to ensure there are new viewpoints available to the Board. Directors’ Compensation According to our Articles of Incorporation, not more than 0.3 percent of our annual profits (defined under local law) after recovering any losses incurred in prior years, if any, may be distributed as compensation to our directors. In addition, directors who also serve as executive officers of the Company are not entitled to receive any director compensation. Directors’ Professional Qualifications and Independent Analysis According to the relevant requirements set by Taiwan’s Securities and Futures Bureau, the professional qualifications and independence status of the Company’s Board members are listed in the table below. Meet the Following Professional Qualification Requirements, Together with at Least Five Years Work Experience Criteria (Note) An Instructor or Higher Position in a Department of Commerce, Law, Finance, Accounting, or Other Academic Department Related to the Business Needs of the Company in a Public or Private Junior College, College or University A Judge, Public Prosecutor, Attorney, Certified Public Accountant, or Other Professional or Technical Specialists Who Has Passed a National Examination and Been Awarded a Certificate in a Profession Necessary for the Business of the Company Have Work Experience in the Area of Commerce, Law, Finance, or Accounting, or Otherwise Necessary for the Business of the Company 1 2 3 4 5 6 7 8 9 10 Number of Other Taiwanese Public Companies Concurrently Serving as an Independent Director V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V 0 0 0 1 0 0 0 0 Criteria Name Mark Liu Chairman C.C. Wei Vice Chairman Mei-ling Chen Director F.C. Tseng Director Sir Peter L. Bonfield Independent Director Stan Shih Independent Director Kok-Choo Chen Independent Director Michael R. Splinter Independent Director Note: Directors, during the two years before being elected and during the term of office, meet any of the following situations, please tick the appropriate corresponding boxes: 1. Not an employee of the company or any of its affiliates; 2. Not a director or supervisor of the company or any of its affiliates. The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary; 3. Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranks as one of its top ten shareholders; 4. Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the above persons in the preceding three subparagraphs; 5. Not a director, supervisor, or employee of a corporate/institutional shareholder that directly holds five percent or more of the total number of issued shares of the company or ranks as of its top five shareholders; 6. Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company; 7. Not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that, provides commercial, legal, financial, accounting services or consultation to the company or to any affiliate of the company, or a spouse thereof, provided that this restriction does not apply to any member of the compensation committee who exercises powers pursuant to Article 7 of the “Regulations Governing the Establishment and Exercise of Powers of Compensation Committees of Companies whose Stock is Listed on the TWSE or Traded on the GTSM”; 8. Not having a marital relationship, or a relative within the second degree of kinship to any other director of the company; 9. Not been a person of any conditions defined in Article 30 of the Company Law; and 10. Not a governmental, juridical person or its representative as defined in Article 27 of the Company Law. 34 35 TSMC’s Audit Committee is empowered by its Charter to conduct any study or investigation it deems appropriate to fulfill its responsibilities. It has direct access to TSMC’s internal auditors, the Company’s independent auditors, and all employees of the Company. The Committee is authorized to retain and oversee special legal, accounting, or other consultants as it deems appropriate to fulfill its mandate. The Audit Committee Charter is available on TSMC’s corporate website. 3.2.2 Compensation Committee The Compensation Committee assists the Board in discharging its responsibilities related to TSMC’s compensation and benefits policies, plans and programs, and in the evaluation and compensation of TSMC’s directors of the Board and executives. The members of the Compensation Committee are appointed by the Board as required by R.O.C. law. According to TSMC’s Compensation Committee Charter, the Committee shall consist of no fewer than three independent directors of the Board. The Compensation Committee is comprised of all independent directors, and the Board appointed former Chief Executive Officer of Xilinx, Inc., Mr. Moshe N. Gavrielov, as a member of the Compensation Committee on November 13, 2018. The Chairman of the Board and the Chief Executive Officer are invited by the Committee to attend all meetings and are excused from the Committee’s discussion of their own compensation. TSMC’s Compensation Committee is authorized by its Charter to retain an independent consultant to assist in the evaluation of CEO, or executive officer compensation. The Compensation Committee Charter is available on TSMC’s corporate website. 3.2.1 Audit Committee The Audit Committee assists the Board in fulfilling its oversight of the quality and integrity of the accounting, auditing, reporting, and financial control practices of the Company. The Audit Committee is responsible to review the following major matters: • Financial reports; • Auditing and accounting policies and procedures; • Internal control systems and including related policies and procedures; • Material asset or derivatives transactions; • Material lending funds, endorsements or guarantees; • Offering or issuance of any equity-type securities; • Derivatives and cash investments; • Legal compliance; • Related-party transactions and potential conflicts of interests involving executive officers and directors; • Ombudsman reports; • Fraud prevention and investigation reports; • IT security; • Corporate risk management; • Performance, independence, qualification of independent auditor; • Hiring or dismissal of an attesting CPA, or the compensation given thereto; • Appointment or discharge of financial, accounting, or internal auditing officers; • Assessment of Committee Charter and fulfillment of Audit Committee duties; and • Assessment of the Committee’s performance, etc. Under R.O.C. law, the membership of Audit Committee shall consist of all independent directors. TSMC’s Audit Committee satisfies this statutory requirement. The Committee also engaged a financial expert consultant in accordance with the rules of the U.S. Securities and Exchange Commission. The Audit Committee annually conducts self-evaluation to assess the Committee’s performance and identify areas for further attention. Compensation Committee Members’ Professional Qualifications and Independent Analysis According to the relevant requirements set by Taiwan’s Securities and Futures Bureau, the professional qualifications and independence status of the Company’s Compensation Committee members are listed in the table below. Meet the Following Professional Qualification Requirements, Together with at Least Five Years Work Experience Criteria (Note 1) Criteria Name Title Michael R. Splinter Independent Director Sir Peter L. Bonfield Independent Director Stan Shih Independent Director Kok-Choo Chen Independent Director Moshe N. Gavrielov (Note 2) An Instructor or Higher Position in a Department of Commerce, Law, Finance, Accounting, or Other Academic Department Related to the Business Needs of the Company in a Public or Private Junior College, College or University A Judge, Public Prosecutor, Attorney, Certified Public Accountant, or Other Professional or Technical Specialists Who Has Passed a National Examination and Been Awarded a Certificate in a Profession Necessary for the Business of the Company Have Work Experience in the Area of Commerce, Law, Finance, or Accounting, or Otherwise Necessary for the Business of the Company 1 2 3 4 5 6 7 8 Number of Other Taiwanese Public Companies Concurrently Serving as a Compensation Committee Member V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V 0 0 0 0 0 Note 1: Compensation Committee Members, during the two years before being elected or during the term of office, meet any of the following situations, please tick the appropriate corresponding boxes: 1. Not an employee of the company or any of its affiliates; 2. Not a director or supervisor of the company or any of its affiliates. The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary; 3. Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranks as one of its top ten shareholders; 4. Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the above persons in the preceding three subparagraphs; 5. Not a director, supervisor, or employee of a corporate/institutional shareholder that directly holds five percent or more of the total number of issued shares of the company or ranks as of its top five shareholders; 6. Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company; 7. Not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that, provides commercial, legal, financial, accounting services or consultation to the company or to any affiliate of the company, or a spouse thereof; 8. Not been a person of any conditions defined in Article 30 of the Company Law. Note 2: The Board appointed Mr. Moshe N. Gavrielov (former Chief Executive Officer of Xilinx, Inc.) as a member of the Compensation Committee on November 13, 2018. 36 37 3.2.3 Director and Committees Members’ Attendance Each Director is expected to attend every Board meeting and the committees meeting on which he or she serves. In 2018, the average Board Meeting attendance rate was 86% and the attendance rate for the Audit Committee and Compensation Committee’s Meetings were 80% and 75% respectively. Board of Directors Meeting Status TSMC’s Chairman of the Board of Directors convened four regular meetings and one special meeting in 2018. The directors’ attendance status is as follows. Title Name Attendance in Person By Proxy Attendance Rate in Person (%) Notes Founder/Former Chairman Morris Chang Chairman Vice Chairman Director Director Mark Liu C.C. Wei National Development Fund, Executive Yuan 　 Representative: Mei-ling Chen F.C. Tseng Independent Director Sir Peter L. Bonfield Independent Director Stan Shih Independent Director Thomas J. Engibous Independent Director Kok-Choo Chen Independent Director Michael R. Splinter Annotations:
A. (1) Securities and Exchange Act §14-3 resolutions:
Meeting Dates Resolution 2 5 5 3 5 5 5 1 4 5 0 0 0 2 0 0 0 4 1 0 100% Retired (Note 1) 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 60% Renewal of office (Note 1) 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 20% Renewal of office (Note 1 and Note 2) 80% Renewal of office (Note 1) 100% Renewal of office (Note 1) Any Independent Director Had a Dissenting Opinion or Qualified Opinion 2018 2nd Regular Meeting June 5 & 6 2018 4th Regular Meeting November 12 & 13 2019 1st Regular Meeting February 18 & 19 • approving amendments to TSMC’s internal control related policies and procedures None • approving the proposed 2019 service fees and out-of-pocket expenses for Deloitte & Touche, TSMC’s independent auditor • approving amendments to TSMC’s “Procedures for Acquisition or Disposal of Assets” • approving amendments to TSMC’s “Procedures for Financial Derivatives Transactions” (2) There were no other written or otherwise recorded resolutions on which an independent director had a dissenting opinion or qualified opinion in 2018. B. Recusals of Directors due to conflicts of interests in 2018: Directors recused themselves from the discussion and voting of their compensation resolution. C. Measures taken to strengthen the functionality of the Board: - Four of the eight current Directors are Independent Directors. The number of Independent Directors is 50% of the total number of Directors. - The Chairman of the Board of Directors is not executive officer of the Company. - TSMC Board delegates various responsibilities and authority to two Board Committees, Audit Committee and Compensation Committee. Each Committees chairperson regularly reports to the Board on the activities and actions of the relevant committee. Note 1: TSMC’s 14th Board of Directors was elected at TSMC’s Annual Shareholders’ Meeting on June 5, 2018. Their respective tenures are from June 5 2018 to June 4, 2021. TSMC’s Founder, Dr. Morris Chang retired after the meeting. Note 2: Mr. Thomas J. Engibous’ attendance rate in 2018 for TSMC’s Board and Committee meetings was affected by a personal medical condition that prevented him from traveling long distances. Mr. Engibous participated in one special meeting held via video-conference. He received updates on important matters considered by the Board at the meetings he was unable to attend, which allowed him to continue providing his insight to the Company throughout the year. Mr. Engibous resigned as Independent Director of TSMC due to health reasons, effective January 1, 2019. Audit Committee Meeting Status Sir Peter L. Bonfield, Chairman of the Audit Committee, convened four regular meetings and one special meeting in 2018. The Committee members and consultant’s attendance status is shown in the following table. In addition to these meetings, the Committee members and Financial Expert Consultant participated in three telephone conferences to discuss the Company’s Annual Report to be filed with the Taiwan and U.S. authorities and investor conference materials with management. Title Chair Member Member Member Member Name Sir Peter L. Bonfield Stan Shih Thomas J. Engibous Kok-Choo Chen Michael R. Splinter Financial Expert Consultant J.C. Lobbezoo Annotations: A. (1) Resolutions related to Securities and Exchange Act §14-5: Meeting Dates Resolution Attendance in Person By Proxy Attendance Rate in Person (%) Telephone Conferences Attendance Rate of Telephone Conferences (%) Notes 5 5 1 4 5 5 0 0 4 1 0 0 100% 100% 20% 80% 100% 100% 3 3 2 3 3 3 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 67% Renewal of office (Note 1 and Note 2) 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 100% None Any Independent Director Had a Dissenting Opinion or Qualified Opinion None 2018 1st Regular Meeting February 12 2018 2nd Regular Meeting June 5 2018 3rd Regular Meeting August 13 2018 4th Regular Meeting November 12 2019 1st Regular Meeting February 18 • approving the 2017 annual financial statements • approving 2017 Statement of Internal Control System • approving amendments to TSMC’s internal control related policies and procedures • approving the 2018 second quarter financial statements • approving the proposed 2019 service fees and out-of-pocket expenses for TSMC’s independent auditor • approving the 2018 annual financial statements • approving 2018 Statement of Internal Control System • approving amendments to TSMC’s “Procedures for Acquisition or Disposal of Assets” • approving amendments to TSMC’s “Procedures for Financial Derivatives Transactions” (2) There was no other resolutions which was not approved by the Audit Committee but was approved by two thirds or more of all directors in 2018. B. There were no recusals of independent directors due to conflicts of interests in 2018. C. Descriptions of the communications between the independent directors, the internal auditors, and the independent auditors in 2018 (which should include the material items, channels, and results of the audits on the corporate finance and/or operations, etc.): (1) The internal auditors have sent the audit reports to the members of the Audit Committee periodically, and presented the findings of all audit reports in the quarterly meetings of the Audit Committee. The head of Internal Audit will immediately report to the members of the Audit Committee any material matters. During 2018, the head of Internal Audit did not report any such material matters. The communication channel between the Audit Committee and the internal auditor functioned well. (2) The Company’s independent auditors have presented the findings of their quarterly review or audits on the Company’s financial results. Under applicable laws and regulations, the independent auditors are also required to immediately communicate to the Audit Committee any material matters that they have discovered. During 2018, the Company’s independent auditors did not report any irregularity. The communication channel between the Audit Committee and the independent auditors functioned well. The communications between the independent directors, the internal auditors, and the independent auditors are listed in the table below. Communications between the Independent Directors and the Internal Auditors Communications between the Independent Directors and the Independent Auditors Meeting Dates 2018 1st Regular Meeting February 12 • reviewing the Internal Auditor’s report (closed door) • reviewing report on SOX 404 self-testing results for the year 2017 • reviewing and approving 2017 Statement of Internal Control System 2018 2nd Regular Meeting June 5 • reviewing the Internal Auditor’s report (closed door) • reviewing and approving amendments to TSMC’s internal control related policies and procedures 2018 3rd Regular Meeting August 13 • reviewing the Internal Auditor’s report (closed door) • reviewing Internal Audit and Information Technology Managements’ report on August 3rd computer virus incident 2018 4th Regular Meeting November 12 • reviewing the Internal Auditor’s report (closed door) • reviewing and approving the 2019 internal audit plan 2019 1st Regular Meeting February 18 • reviewing the Internal Auditor’s report (closed door) • reviewing report on SOX 404 self-testing results for the year 2018 • reviewing and approving 2018 Statement of Internal Control System • reviewing any audit problems or difficulties and management’s response in connection with 2017 annual financial statements (closed door) • reviewing regulatory developments • reviewing external auditor relationship (i.e. qualification, performance and independence) • reviewing report on IFRS 16 adoption status • reviewing any review problems or difficulties and management’s response in connection with 2018 first quarter financial statements (closed door) • reviewing regulatory developments • reviewing the result of CPA evaluation questionnaire • reviewing report on IFRS 16 adoption status • reviewing any review problems or difficulties and management’s response in connection with 2018 second quarter financial statements (closed door) • reviewing regulatory developments • reviewing any review problems or difficulties and management’s response in connection with 2018 third quarter financial statements (closed door) • reviewing regulatory developments • reviewing any audit problems or difficulties and management’s response in connection with 2018 annual financial statements (closed door) • reviewing regulatory developments • reviewing external auditor relationship (i.e. qualification, performance and independence) 38 Result: all of above matters were reviewed and approved by the Audit Committee whereupon independent directors raised no objection. Note 1: Sir Peter L. Bonfield, Stan Shih, Thomas J. Engibous, Kok-Choo Chen and Michael R. Splinter were elected as TSMC’s independent directors and became members of the Compensation Committee on June 5, 2018. Their respective tenures are from June 5 2018 to June 4, 2021. Note 2: Mr. Thomas J. Engibous’ attendance rate in 2018 for TSMC’s Board and Committee meetings was affected by a personal medical condition that prevented him from traveling long distances. Mr. Engibous participated in one special meeting held via video-conference and three meetings held via tele-conference. Mr. Engibous resigned as Audit Committee member of TSMC due to health reasons, effective January 1, 2019. 39 Compensation Committee Meeting Status Mr. Michael R. Splinter, Chairman of the Compensation Committee, convened four regular meetings in 2018. The Committee members’ attendance status is as follows: Title Chair Member Member Member Member Member Name Attendance in Person By Proxy Attendance Rate in Person (%) Notes Michael R. Splinter Sir Peter L. Bonfield Stan Shih Thomas J. Engibous Kok-Choo Chen Moshe N. Gavrielov 4 4 4 0 3 - 0 0 0 4 1 - 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 100% Renewal of office (Note 1) 0% Renewal of office (Note 1 and Note 2) 75% Renewal of office (Note 1) - New office assumed (Note 3) Annotations: A. There was no recommendation of the Compensation Committee which was not adopted or was modified by the Board of Directors in 2018. B. There were no written or otherwise recorded resolutions on which a member of the Compensation Committee had a dissenting opinion or qualified opinion. Note 1: At the meeting of June 5, 2018, TSMC’s Board of Directors approved the appointment of all five independent directors, Michael R. Splinter, Sir Peter L. Bonfield, Stan Shih, Thomas J. Engibous and Kok-Choo Chen, as members of the Compensation Committee. Their respective tenures are from June 5 2018 to June 4, 2021. Note 2: Mr. Thomas J. Engibous’ attendance rate in 2018 for TSMC’s Board and Committee meetings was affected by a personal medical condition that prevented him from traveling long distances. Mr. Engibous resigned as Compensation Committee member of TSMC due to health reasons, effective January 1, 2019. Note 3: At the meeting of November 13, 2018, TSMC’s Board of Directors appointed Mr. Moshe N. Gavrielov (former Chief Executive Officer of Xilinx, Inc.) as a member of the Compensation Committee. 3.3 Major Decisions of Shareholders’ Meeting and Board Meetings 3.3.1 Major Resolutions of Shareholders’ Meeting and Implementation Status TSMC held 2018 Annual Shareholders’ Meeting in Hsinchu, Taiwan on June 5, 2018. At the meeting, shareholders present in person or by proxy approved the following resolutions: (1) The 2017 Business Report and Financial Statements. Consolidated revenue totaled NT$977.45 billion and net income was NT$343.11 billion, with diluted earnings per share of NT$13.23; (2) The distribution of a NT$8 cash dividend per common share; (3) The revisions to the Articles of Incorporation; and (4) Election of nine Directors (including five Independent Directors). Implementation Status All the resolutions of the Shareholders’ Meeting have been fully implemented in accordance with the resolutions. The nine newly elected directors were Mark Liu, C.C. Wei, Mei-ling Chen (Representative of National Development Fund, Executive Yuan), F.C. Tseng, Sir Peter L. Bonfield (Independent Director), Stan Shih (Independent Director), Thomas J. Engibous (Independent Director), Kok-Choo Chen (Independent Director), and Michael R. Splinter (Independent Director). 3.3.2 Major Resolutions of Board Meetings During 2018 and as of the date of this Annual Report, major resolutions approved at Board meetings are summarized below: (1) Board Meeting of February 12 & 13, 2018: • approving 2017 business report and financial statements; • approving distribution of 2017 profits, and cash dividends, employee cash bonus and employee profit sharing; • approving capital appropriations of approximately US$2,834 million for purposes including: 1. Installation, upgrading and expanding advanced technology capacity; 2. Conversion of logic capacity to specialty technology; 3. Second quarter 2018 R&D capital investments and sustaining capital expenditures; • convening the 2018 Annual Shareholders’ Meeting, at which shareholders held an election for TSMC’s nine-member Board of Directors, including five Independent Directors; • approving the promotions of Dr. T.S. Chang, Dr. Michael Wu, and Dr. Min Cao as Vice Presidents; and • in gratitude to Dr. Morris Chang, conferring on Dr. Chang the title of “Founder” beginning June 5, 2018. (2) Special Board Meeting of April 20, 2018: • approving nine candidates for Board of Directors, including four current Directors, Mr. F.C. Tseng, Ms. Mei-ling Chen, Mr. Mark Liu, and Mr. C.C. Wei, as well as five current Independent Directors, Sir Peter L. Bonfield, Mr. Stan Shih, Mr. Thomas J. Engibous, Ms. Kok-Choo Chen, and Mr. Michael R. Splinter. These nine candidates for Board of Director stood for election at TSMC’s Annual Shareholders’ Meeting on June 5, 2018. (3) Regular Board Meeting of June 5 & 6, 2018: • approving capital appropriation of approximately US$2,314.6 million for purposes including: 1. Fab facility construction; 2. Expansion and upgrading of advanced technology capacity; 3. Procurement of advanced technology equipment; 4. Expansion of advanced packaging capacity; 5. Conversion of certain mature process technology capacity to specialty process capacity; 6. Third quarter 2018 R&D capital investments and sustaining capital expenditures; • approving a donation of US$5,625,000 to the University of California, Berkeley Foundation to support the establishment of a master’s program for the Management of Technology Innovation at University of California, Berkeley, and provide a dedicated Morris Chang Distinguished Chair to conduct the program; and • setting July 1, 2018 as the record date for common stock shareholders entitled to participate in distribution of 2017 profits in the form of cash dividend. (4) Regular Board Meeting of August 13 & 14, 2018: • approving capital appropriations of approximately US$4,488.09 million for purposes including: 1. Construction of fab facilities; 2. Installation, expansion, and upgrade of advanced technology capacity; 3. Conversion of logic capacity to specialty technology capacity; 4. Conversion of mature technology capacity to specialty technology capacity; 5. Expansion and upgrade of specialty technology capacity; 6. Expansion of advanced packaging technology capacity; 7. Fourth quarter 2018 R&D capital investments and sustaining capital expenditures; • approving the capital injection of not more than US$2 billion to TSMC Global Ltd., a wholly-owned BVI subsidiary, for the purpose of reducing foreign exchange hedging costs; and • approving the appointment of Dr. H.-S. Philip Wong as Vice President. (5) Regular Board Meeting of November 12 & 13, 2018: • approving capital appropriations of approximately US$3,364.40 million for purposes including: 1. Construction of fab facilities; 2. Installation, expansion, and upgrade of advanced technology capacity; 3. Upgrade of specialty technology capacity; 4. Conversion of logic capacity to specialty technology capacity; 5. First quarter 2019 R&D capital investments and sustaining capital expenditures; • approving capital appropriation of approximately US$17,320,000 for capitalized leased assets in the first half of 2019; • approving the appointment of Mr. Moshe N. Gavrielov as a member of the Compensation Committee, effective November 13, 2018; and • approving the promotions of Mr. J.K. Lin and Mr. J.K. Wang as Senior Vice Presidents, and Dr. Marvin Liao as Vice President. (6) Board Meeting of February 18 & 19, 2019: • approving 2018 business report and financial statements; • approving distribution of 2018 profits, and cash dividends, employee cash bonus and employee profit sharing; • approving capital appropriations of approximately US$3,728.9 million for purposes including: 1. Installation of advanced technology capacity; 2. Conversion of logic capacity to specialty technology capacity; 3. Second quarter 2019 R&D capital investments and sustaining capital expenditures; • approving capital appropriation of approximately US$4.91million to increase the budget for capitalized leased assets in the first half of 2019; • convening the 2019 Annual Shareholders’ Meeting, at which shareholders will hold a by-election for one independent director; and • approving the promotion of Mr. Y.H. Liaw as Vice President. 3.3.3 Major Issues of Record or Written Statements Made by Any Director Dissenting to Important Resolutions Passed by the Board of Directors during 2018 and as of the Date of this Annual Report: None. 40 41 3.4 Taiwan Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission Assessment Item Implementation Status Yes No Explanation 1. Does Company follow “Taiwan Corporate Governance Implementation” to V establish and disclose its corporate governance practices? TSMC has always followed excellent corporate governance practices, provided the utmost in operational transparency and safeguarded shareholders’ equity. Although the Company does not have a formal code of practice for corporate governance, however TSMC has always been highly regarded as the industry leader in implementing comprehensive corporate governance practices. In addition, the Company also has a world-class Board of Directors. The Company believes that corporate governance is based on integrity, professional management and implementation. TSMC has been proving its excellent corporate governance in its operating performance and continued winning of domestic and international awards on best corporate governance company. Non- implementation and Its Reason(s) Same as explanation 2. Shareholding Structure & Shareholders’ Rights (1) Does Company have Internal Operation Procedures for handling shareholders’ suggestions, concerns, disputes and litigation matters. If yes, has these procedures been implemented accordingly? (2) Does Company possess a list of major shareholders and beneficial owners of these major shareholders? (3) Has the Company built and executed a risk management system and “firewall” between the Company and its affiliates? (4) Has the Company established internal rules prohibiting insider trading on undisclosed information?
V V V V (1) TSMC has designated appropriate departments, such as Corporate Communication Division, the SEC Compliance Department, Legal Department, etc., to handle shareholder suggestions, concerns, disputes or litigation matters. None (2) TSMC tracks the shareholdings of directors, officers, and top ten shareholders. (3) TSMC has set up internal rules in the Company’s Internal Control System and Affiliated Corporations Management. (4) TSMC has established its “Insider Trading Policy” that applies to all employees, officers and members of the Board of Directors of the Company and to any other person having a duty of trust or confidence, with respect to transactions in the Company’s securities. This policy prohibits any insider trading and the Company regularly provides internal training on this issue. Assessment Item 4. Does the Company established a full- (or part-) time corporate governance unit or personnel to be in charge of corporate governance affairs (including but not limited to furnish information required for business execution by directors, handle matters relating to board meetings and shareholders’ meetings according to laws, handle corporate registration and amendment registration, record minutes of board meetings and shareholders meetings, etc.)? 5. Has the Company established a means of communicating with its Stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.) or created a Stakeholders Section on its Company website? Does the Company respond to stakeholders’ questions on corporate responsibilities? 6. Has the Company appointed a professional registrar for its Shareholders’ Meetings? 7. Information Disclosure (1) Has the Company established a corporate website to disclose information regarding its financials, business and corporate governance status? V V V V Implementation Status Yes No Explanation Non- implementation and Its Reason(s) None The Chairman appointed the current General Counsel as the Company’s Board secretariat. TSMC’s Corporate & Compliance Legal Division, which directly reports to the General Counsel, is in charge of assisting in related affairs, including furnishing information required for business decisions by Directors, handling matters relating to Board meetings, Committees meetings and Shareholders’ meetings and recording minutes of relevant meetings, etc. The SEC Compliance Department is responsible for handling corporate registration and amendment registration. All application documents needs to be reviewed by Legal and approved by the General Counsel. Depending on the situation, the Company’s Corporate Communication Division, SEC Compliance department, Human Resources department, Customer Service department and Procurement department will communicate with stakeholders. We also have publicly disclosed the contact information of our corporate spokesperson and relevant departments. Also, we have a stakeholder section on our corporate website to address our corporate social responsibilities and any other issues. For details, please refer to “7. Corporate Social Responsibility” on page 115-132 of this Annual Report and “Materiality Analysis and Stakeholder Communication” of TSMC’s CSR Report. None We have appointed China Trust as our registrar for our Shareholders’ Meetings None None (1) TSMC discloses its financials business and corporate governance status on its website at http://www.tsmc.com (in Chinese and English). TSMC’s American Depositary Receipt (ADR) is listed on the New York Stock Exchange (NYSE). As a foreign issuer, TSMC must comply with NYSE’s rules. We have been operating in accordance with NYSE listing standards, and have been disclosing the major differences between our corporate governance practices and U.S. corporate governance practices. Please see https://www.tsmc.com/download/ir/NYSE_ Section_303A.pdf 3. Composition and Responsibilities of the Board of Directors (1) Has the Company established a diversification policy for the composition of its Board of Directors and has it been implemented accordingly? V (1) The members of TSMC Board of Directors are nominated via a None (2) Does the Company use other information disclosure channels V (2) TSMC has designated appropriate departments (e.g. the Corporate (e.g. maintaining an English-language website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investors conference etc.)? Communication Division, the SEC Compliance Department, etc.) to handle the collection and disclosure of information as required by the relevant laws and regulations of Taiwan and other jurisdictions. TSMC has designated spokespersons as required by relevant regulations. TSMC webcasts live investor conferences. 8. Has the Company disclosed other information to facilitate a better V (1) For employee rights and employee wellness, please refer to “5.5 Human Capital” None (2) Other than the Compensation Committee and the Audit Committee which are required by law, does the Company plan to set up other Board committees? (3) Has the Company established methodology for evaluating the performance of its Board of Directors, on an annual basis? V V rigorous selection process. It not only considers diverse backgrounds, professional competence and experience, but also attaches great importance to his/her personal reputation on ethics and leadership. Presently, the Company’s Board of Directors consists of eight members who possess world-class managerial and/or professional experiences. We rely on each directors’ knowledge, personal insight and business judgment. Two female directors currently sit on the Board of Director, and half of our Board consists of independent directors. (2) Audit Committee (founded in 2002): consists of all independent directors; Compensation Committee (founded in 2003): consists of all independent directors and the Board appointed former Chief Executive Officer of Xilinx, Inc., Mr. Moshe N. Gavrielov, as a member of the Compensation Committee on November 13, 2018; CSR Committee (founded in 2011): is formed by the Company’s management team and reports to the Board of Directors. (3) As TSMC’s corporate governance concept, the Board of Director’s primary responsibility is to supervise, evaluate the management’s performance and dismiss officers of the Company when necessary, resolve the important, concrete matters and provide guidance to the management team. TSMC’s Board of Directors consists of distinguished members with a great breadth of experience as world- class business leaders or professionals and adhere high ethical standards and commitment to the Company. Each quarter’s Board Meeting is last for two days. Company’s resolutions are determined in board meeting, also business strategy and future orientation are discussed in the meeting, in order to create best interest for shareholders. Based on TSMC’s operating performance and local/ international awards of best corporate governance, it certainly proves the Company’s excellent performance of Board of Directors. Also, TSMC’s audit committee performs self-evaluation and discusses future issues of concern by questionnaire on annual basis. (4) Does the Company regularly evaluate its external auditors’ V (4) The Audit Committee annually evaluates the independence of external independence?
auditors and reports the same to the Board of Directors. (Continued) understanding of its corporate governance practices (e.g. including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors’ training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing insurance for directors)? on page 82-87 of this Annual Report. (2) For investor relations, supplier relations and rights of stakeholders, please refer to “7. Corporate Social Responsibility” on page 115-132 of this Annual Report. (3) For Directors’ training records, please refer to “Continuing Education/Training of Directors in 2018” on page 44 of this Annual Report. (4) For Risk Management Policies and Risk Evaluation, please refer to “6.3 Risk Management” on page 100-112 of this Annual Report. (5) For Customer Relations Policies, please refer to “5.4 Customer Trust” on page 80-82 of this Annual Report. (6) TSMC maintains D&O Insurance for its directors and officers. 9. The improvement status for the result of Corporate Governance Evaluation announced by Taiwan Stock Exchange TSMC was ranked in top 5% in Corporate Governance Evaluation in 2017 and 2018. The implementation status regarding below three non-scoring items:
(1) Establishment a formal code of practice for corporate governance: as the explanation of Assessment Item 1 of this table, although the Company does not have a formal code of practice for corporate governance, however TSMC has always been highly regarded as the industry leader in implementing comprehensive corporate governance practices. In addition, the Company also has a world-class Board of Directors. The Company believes that corporate governance is based on integrity, professional management and implementation. TSMC has been proving its excellent corporate governance in its operating performance and continued winning of domestic and international awards on best corporate governance company. (2) Training of Directors: TSMC’s Board of Directors consists of distinguished members with a great breadth of experience as world-class business leaders or professionals. The Company continually arranges relevant training for Directors during Board meetings, and Directors also participate relevant course as needed. For details, please refer to the below table “Continuing Education/Training of Directors in 2018”. (3) D&O Insurance and Report to the Board: TSMC maintains D&O Insurance for its directors and reported to the Board in February, 2019. 42 43 Continuing Education/Training of Directors in 2018 The major training methods of Directors include: • At quarterly Board meetings, TSMC management presents updates on the Company’s business, regulatory developments and other information; • The Company arranges speeches on politics, economics, regulatory compliance, etc.; • At quarterly Audit Committee meetings, TSMC’s General Counsel and the Company’s independent auditors provide regulatory update reports; and • Directors participate in externally-provided training courses as needed. In addition, from time to time, Directors are invited by other parties to give speeches on corporate governance and related topics. Name Date Host by Training/Speech Title Mark Liu (Note) 09/05 SEMI Taiwan Ministry of Science and Technology SEMICON Taiwan 2018 – IC60 Master Forum Speech: Vision X Foundry – IC Technology – The Roadmap Going Forward (0.5 hour) C.C. Wei 09/05 SEMI Taiwan Ministry of Science and Technology SEMICON Taiwan 2018 – IC60 Master Forum Duration 1 day 1 day F.C. Tseng 03/21 Taiwan Corporate Governance Association Current Development Trends in Corporate Governance and the IPO Outlook under Taiwan’s Capital Markets 3 hours 08/02 08/08 11/07 12/03 Artificial Intelligence and the Future Important Regulatory Updates International Trade Outlook in 2019 – Starting from Observations of the US-China Trade Conflict Transforming Taiwan Companies Sir Peter L. Bonfield 02/11 Hampton Group The Next 50 Years: Fostering Innovation Through Global Collaboration 10/05 Diligent Corp. Discussion Group on Corporate Governance Issues 3 hours 1.5 hours 1.5 hours 3 hours 0.25 hour 1 day Stan Shih 03/21 Taiwan Corporate Governance Association Current Development Trends in Corporate Governance and the IPO Outlook under Taiwan’s Capital Markets 3 hours 05/09 08/08 11/07 International Political & Economic Situation’s Impact on the Telecommunication Industry in Taiwan Important Regulatory Updates International Trade Outlook in 2019 – Starting from Observations of the US-China Trade Conflict 08/29 Taiwan Insurance Institute Anti-Money Laundering and Counter-Terrorism Financing Regulatory Analysis Kok-Choo Chen 11/27 Taiwan Corporate Governance Association The Impact of Revised R.O.C. Company Law on Corporate Governance, Internal Control and Responsibility of Directors and Supervisors Investor AB Activist Investors Board Management 05/15 05/16 09/13 09/14 09/15 08/14 TSMC 11/13 TSMC A Pragmatic Review of the Power Supply in Taiwan’s Energy Transition Plan by Dr. Chi-Yuan, Liang Chair Professor, National Central University The Unprecedented Geopolitical Situation in East Asia and Its Impact on Taiwan by Dr. Chi Su Chairman, Taipei Forum Michael R. Splinter Mark Liu C.C. Wei F.C. Tseng Sir Peter L. Bonfield Stan Shih Michael R. Splinter Mei-ling Chen Mark Liu C.C. Wei F.C. Tseng Sir Peter L. Bonfield Stan Shih Kok-Choo Chen Michael R. Splinter Note: Selected speeches on corporate governance and related topics. 3 hours 1.5 hours 1.5 hours 2 hours 3 hours 2 days 3 days 1 hour 1 hour Continuing Education/Training of Management in 2018 Name/Title Date Host by Training/Speech Title Lora Ho Senior Vice President and Chief Financial Officer Sylvia Fang Vice President and General Counsel 03/05 Taiwan Depository & Clearing Corporation 100% E-Voting in 2018 and Enhancement of Corporate Values 08/02 Taiwan Coporate Goverance Association Artificial Intelligence and the Future 06/01 Klynveld Peat Marwick Goerdeler Law Firm Technology Innovation and New Operations Management Model – How to Use Blockchain and Smart Contract to Protect Trade Secrets and IPs Duration 6 hours 3 hours 2.5 hours Corporate’s Way to Comply Fully with GDPR – How Corporate Implement Information Security and Corporate Transformation to Create Its Global Competitiveness 5 hours 06/08 Microsoft Taiwan Taiwan Technology Industry Legal Officers Association Klynveld Peat Marwick Goerdeler Accounting Firm 08/09 Institite for Information Industry 08/16 Chinese National Federation of Industries Expert Forum on Legal Issues in Protecting Sensitive Technology Outsourced for Research and Development Seminar: Prof. Mark Schultz from Southern Illinois University to Have a Dialogue with Taiwan’s Industry (1) How to Improve Trade Secret Laws Globally (2) Creating a Global Trade Secret Federation to Support These Efforts 09/07 Lee and Li Attorneys-at-Law Forum on Key Points and Practical Impacts of the Amended Company Law 10/03 Intellectual Property Office Taiwan Trade Secret Protection Association 2018 Cross-Strait Trade Secret Investigation and Litigation Practice Forum 11/03 11/04 Intellectual Property Research Institute of Xiamen University Taiwan Trade Secret Protection Association 2018 Cross-Strait Trade Secrets Protection Forum 08/02 Taiwan Corporate Governance Association Artificial Intelligence and the Future 08/31 Legal Liability of Insider Trading and Related Case Study 05/17 Taiwan Accounting Research and Development Foundation Analysis and Implications of IFRS 16 – Leases Corporate Governance Practices: Analyzing the Practical Issues in “Supply Chain Management” Strategies and Exploring the Application Trend of “IoT” Cliff Hou Vice President, Research and Development/ Technology Development Jessica Chou Senior Director, Accounting Division 08/31 Seminar: How Corporate Works with Its Auditors on Reviewing Financial Statements 3 hours John Liang Director, Internal Audit 08/15 Taiwan Computer Audit Association How to Apply Data Analysis and AI to Internal Auditing 12/04 Taiwan Accounting Research and Development Foundation Practices of Audit Management and Control of Business Cost Saving and Competitive Strategy Exploring the Types and Legal Liabilities of Special Breach of Trust Crimes and Relevant Cases Study 3 hours 6 hours 6 hours 2 hours 2.5 hours 4 hours 8 hours 2 days 3 hours 3 hours 3 hours 3 hours 44 45 3.5 Code of Ethics and Business Conduct Ethics at TSMC “Integrity” is TSMC’s most important core value. TSMC strictly adheres to the highest standards of integrity and promotes good ethical behavior to sustain the hard-earned trust and confidence of its shareholders, customers, suppliers, employees and the general public – constantly and vigilantly promoting integrity, fairness, and transparency in all that we say and do. We have zero tolerance for corruption, refrain from bribery, fraud, waste of corporate assets, and prohibit the advancement of personal interests at the expense of or in conflict with TSMC. At the heart of our corporate governance culture is the “TSMC Ethics and Business Conduct Policy” (“Ethics Code”). The Ethics Code requires that each employee bear a heavy personal responsibility to preserve and to protect TSMC’s ethical values and reputation. At the same time, we have formulated the “TSMC’s Supplier Code of Conduct” as well to ensure our suppliers understand and follow the Ethics Code and together fulfill our corporate social responsibilities. Major Ethics Code Obligations • Do not advance personal interests at the expense of or in conflict with the Company; • Refrain from corruption, unfair competition, fraud, collusion, and waste or abuse of corporate assets; • Avoid any efforts improperly to influence the decisions of anyone, including government officials, agencies, as well as TSMC’s customers and suppliers; • Do not undertake any practices detrimental to TSMC, to the environment, or to society; • Procure all of our raw materials from socially responsible sources; • Protect proprietary information of TSMC and our customers; and • Abide by the letter of all applicable laws, rules and regulations. Intellectual Property Protection: In order to build and sustain an environment of innovation, technology leadership, and sustainable profitable growth, the Ethics Code requires that TSMC promotes business relationships founded upon an unwavering respect for the intellectual property rights, proprietary information and trade secrets of TSMC, our customers, and others. Public Disclosures: TSMC’s officers, especially our CEO, CFO, and General Counsel, with oversight from our Board, are responsible for the full, fair, accurate, timely, and understandable financial accounting and financial disclosure in reports and documents filed by the Company with securities authorities and in all TSMC public communications and disclosures. TSMC has a variety of measures in place to ensure compliance with these disclosure obligations. Any modification to the Ethics Code requires the approval of our Audit Committee to ensure our ethics compliance program is independently reviewed against corporate best practices. Ethics Code Implementation High Standard Ethical Culture: Our ethics program is implemented in four ways by all of TSMC’s employees, officers and Board members. First, TSMC’s management sets the “tone from the top” by acting in accordance with the Ethics Code so that they may be an example to all stakeholders. Second, working-level managers are responsible for ensuring their staff’s understanding of and compliance with applicable rules and regulations. Third, TSMC encourages an environment of open communications in discussing any questions related to the Ethics Code. Any employee may consult his or her direct supervisors, Human Resources or Legal to obtain timely advice. Lastly, TSMC requires all employees to stay vigilant and report any noncompliance by anyone to their supervisors, the function head of Human Resources, the responsible corporate senior management appointed by CEO that oversees the Ombudsman system, or to the Chairman of the Company’s Audit Committee directly. Self-Assessment of All Departments and Employees: Self- assessment of all departments and employees is an important part of our ethics compliance program. All departments and subsidiaries of TSMC are required to conduct Control Self- Assessment (CSA) tests annually to review employees’ awareness of the Ethics Code. The CSA results are reviewed to track the results of our compliance program. In addition, all employees must disclose any matters that cause, or may cause, actual or potential conflict of interest. In addition to this proactive disclosure requirement, employees with specific job grades or job responsibilities must annually declare any relationships that may constitute a conflict of interest, which enables TSMC to take necessary arrangements and report the results to the Audit Committee. Internal Auditing: The Internal Auditor of TSMC plays a critical role in ensuring the Company’s compliance with the Ethics Code and relevant rules and regulations. To ensure that our financial, managerial, and operating information is accurate, reliable, and timely and that our employees’ actions are in compliance with applicable policies, standards, procedures, laws and regulations, our Internal Auditor conducts audits of various control points within the Company in accordance with its annual audit plan approved by the Board of Directors and subsequently reports its audit findings and remedial issues to the Board and management on a regular basis. Training and Promotion: To promote awareness to our employees of their responsibilities under the Ethics Code, we publish our Ethics Code and related policies and documents on our intranet and, provide training courses, posters, and emails. In addition, we provide an introductory training course on the Ethics Code which is available to all employees online, as well as face-to-face training courses delving into more specific ethics-related topics for targeted employees. In 2018, there were about 41,900 attendances completed ethics-related training courses at TSMC and its subsidiaries. In addition to our internal compliance efforts, we expect and assist our business partners such as customers and suppliers, and any other entities with whom we deal (include consultants or third party agents who act for or on behalf of TSMC) to recognize and understand TSMC’s ethical standards to fulfill our responsibilities as a corporate citizen. For instance, we require all of our suppliers to declare in writing that they will respect and comply with TSMC’s ethical standards and culture. TSMC is a full member of the Responsible Business Alliance (“RBA”, formerly the (Electronic Industry Citizenship Coalition, EICC)), dedicated to electronics supply chain sustainability. In addition to adopting the RBA Code of Conduct at all of its facilities, TSMC applied the RBA’s standards to enhance our audit program of our suppliers and relevant business partners. We provide training and communicate our ethical culture to our suppliers through live seminars to prevent any unethical conduct and detect any sign of Ethics Code violations. In 2018, we held two TSMC Responsible Supply Chain Forums to restate and communicate our ethical requirements with 313 suppliers participating in the program. We also exchange views on appropriate business conduct and TSMC’s ethical standards with our customers as part of customer audit programs. Reporting Channels and Whistleblower Protection To ensure that our conduct meets relevant legal requirements and the highest ethical standards under the Ethics Code, TSMC provides multiple channels for reporting business conduct concerns. First of all, our Audit Committee approved and we have implemented the “Complaint Policy and Procedures for Certain Accounting and Legal Matters” and “Procedures for Ombudsman System” that allow employees or any whistleblowers with relevant evidence to report any financial, legal, or ethical irregularities anonymously through either the Ombudsman or directly to the Audit Committee. TSMC maintains additional internal reporting channels for our employees. To foster an open culture of ethics compliance, we encourage our employees and the third parties we do business with to report any suspected noncompliance with law or relevant TSMC policy. TSMC treats any complaint and the investigation thereof in a confidential and sensitive manner, and strictly prohibits any form of retaliation against any individual who in good faith reports or helps with the investigation of any complaint. Due to the open reporting channels, TSMC receives reports on various issues from employees and external parties such as our customers and suppliers from time to time. Below is a summary of the Number of Reported Incidents. We did not receive any report related to finance or accounting matters in 2018. Incidents reported to the Audit Committee Whistleblower System Incidents reported to the Ombudsman System Incidents reported to the “Irregular Business Conduct Reporting” Total incidents investigated as founded Sexual Harassment Investigation Committee Total incidents investigated as founded FY 2016 FY 2017 FY 2018 1 80 35 2 5 5 2 1 (Note 1) 79 32 4 7 3 106 (Note 2) 43 (Note 2) 1 (Note 3) 3 3 (Note 4) Note 1: The case from whistleblower system is not related to ethics matters. Note 2: Among the 149 cases, 14 cases related to ethics matters. Note 3: After investigation, 1 case is related to ethics maters, and the employee involved confirmed his violation of the Ethics Code and quit during the period of investigation. Note 4: After the investigation by TSMC’s Sexual Harassment Investigation Committee, 3 employees involved in these 3 cases received severe discipline from the Company. Ethics Code Violation Disciplinary Action We do not tolerate any violation of the Ethics Code and treat every possible violation incident seriously. Any violator of the Ethics Code (or relevant regulations) will be severely disciplined to the full extent of our policies and the law, up to and including immediate dismissal, termination of business relationship, and judicial prosecution as appropriate. 46 47 3.5.1 Taiwan Corporate Conduct and Ethics Implementation as Required by the Taiwan Financial Supervisory Non- implementation and Its Reason(s) None Assessment Item 2. Ethic Management Practice (1) Does the company assess the ethics records of whom it has business relationship with and include business conduct and ethics related clauses in the business contracts? Implementation Status Yes No Summary V (1) We expect and assist our customers, suppliers, business partners, and any other Non- implementation and Its Reason(s) None Commission Assessment Item Implementation Status Yes No Summary 1. Establishment of Corporate Conduct and Ethics Policy and Implementation Measures (1) Does the company have bylaws and publicly available documents addressing its corporate conduct and ethics policy and measures, and the commitment regarding implementation of such policy from the Board of Directors and the management team? (2) Does the company establish relevant policies which are duly enforced to prevent unethical conduct and provide implementation procedures, guidelines, consequence of violation and complaint procedures in such policies? V V (1) Integrity is the most important core value of TSMC’s culture. TSMC is committed to acting ethically in all aspects of our business. We have established TSMC Code of Ethics and Business Conduct (the “Ethics Code”) to require that each employee bears a heavy personal responsibility to uphold TSMC’s ethics value. For more details on the Ethics Code and the measures that TSMC Board of Directors (the “Board”) and the management team take to ensure compliance of the Ethics Code please refer to TSMC’s Annual Report and the Corporate Social Responsibility Report. (2) At the heart of our corporate governance culture is the Ethics Code that applies to TSMC and its subsidiaries, and this Ethics Code requires that each employee bears a heavy personal responsibility to preserve and to protect TSMC’s ethical values and reputation and to comply with various applicable laws and regulations. Specific requirements under the Ethics Code could be found in our Annual Report. In addition, to educate and remind our employees of their responsibilities under the Ethics Code, we publish our Ethics Code, relevant policies and documents on our intranet and promote its awareness through training courses, posters, and internal news articles. Furthermore, to ensure that our conduct meets relevant legal requirements and the highest ethical standards under the Ethics Code, TSMC provides multiple channels for reporting business conduct concerns. Please refer to Assessment Item 3 for details. We do not tolerate any violation of the Ethics Code and treat every possible violation incident seriously. Any violator of the Ethics Code (or relevant regulations) will be severely punished to the full extent of our policies and the law, including immediate dismissal in accordance with TSMC Employee Recognition, Disciplinary and Ombudsman Procedure, termination of business relationship, and judicial prosecution as appropriate. (3) Does the company establish appropriate compliance V (3) Under the framework of the Ethics Code, TSMC has established a regulatory measures for the business activities prescribed in paragraph 2, article 7 of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and any other such activities associated with high risk of unethical conduct? compliance program that includes policies, guidelines and procedures in other policy areas, including: Anti-corruption, Anti-harassment/discrimination, Anti- trust (unfair competition), Environment, Export Control, Financial Reporting/ Internal Controls, Insider Trading, Intellectual Property, Proprietary Information Protection (“PIP“), Personal Data Protection, Record Retention and Disposal, as well as procuring certain raw materials from socially responsible sources (“Conflict- free Minerals“). The above-mentioned policies are crucial in facilitating overall compliance with the Ethics Code. TSMC, its employees and its subsidiaries are expected to fully understand and comply with all laws and regulations that govern our businesses, as well as relevant policies, guidelines and procedures, and make ethical decisions in every circumstance. The Internal Auditor of TSMC also plays a critical role in ensuring the Company’s compliance with the Ethics Code and relevant rules and regulations. To ensure that our financial, managerial, and operating information is accurate, reliable, and timely and that our employee’s actions are in compliance with applicable policies, standards, procedures, laws and regulations, our Internal Auditor conducts audits of various control points within the Company in accordance with its annual audit plan approved by the Board of Directors and subsequently reports its audit findings and remedial issues to the Board and Management on a regular basis. 48 (2) Does the company set up a unit which is dedicated to or V tasked with promoting the company’s ethical standards and reports directly to the Board of Directors with periodical updates on relevant matters? (3) Does the company establish policies to prevent conflict of interests, provide appropriate communication and complaint channels and implement such policies properly? (4) To implement relevant policies on ethical conducts, does the company establish effective accounting and internal control systems that are audited by internal auditors or CPA periodically? V V (5) Does the company provide internal and external ethical V conduct training programs on a regular basis? entities with whom we deal (such as consultant or third party agents who act for or on behalf of TSMC) to understand and act in accordance with TSMC’s ethical standards. For instance, as for our suppliers, we require all of them to declare in writing that they will not engage in any fraud or any unethical conduct when dealing with us or our officers and employees. In addition to periodic audit, we provide training and communicate our ethical culture to our suppliers through live seminars to prevent any unethical conduct. We exchange views on appropriate business conduct and TSMC’s ethical standards with our customers as part of customer audit programs. (2) TSMC’s Board of Directors strives to perform the responsibilities of supervising the corporate conduct and ethics compliance practice through the Audit Committee and the Compensation Committee, the hiring of a financial expert consultant for the Audit Committee, and coordination with the Internal Audit department. The General Counsel and the Corporate & Compliance Legal Division (which directly reports to the General Counsel) promotes, with other divisions, the Company’s ethical standards, and the General Counsel reports quarterly to the Board on the implementation status. In addition, both the responsible senior manager appointed by the CEO to oversee the Ombudsmen system and Internal Auditors update the Board on ethical standards and compliance issues on a regular basis. Moreover, TSMC’s officers, especially our CEO, CFO, and General Counsel, with oversight from our Board, are responsible for the full, fair, accurate, timely, and understandable financial accounting and financial disclosure in reports and documents filed by the Company with securities authorities and in all TSMC public communications and disclosures. (3) TSMC requires newly hired employees to declare any conflict of interest situation as appropriate. In addition, all employees must disclose any matters that have, or may have, the appearance of undermining the Ethics Code (such as any actual or potential conflict of interest). Furthermore, key employees and senior officers must periodically declare their compliance status with the Ethics Code according to relevant procedures. (4) TSMC continues maintaining the integrity of its financial reporting processes and controls and establishes appropriate internal control systems for preventing higher potential unethical conduct, and the Internal Auditors formulate annual audit plans based on the results of the risk assessment and subsequently reports its audit findings and remedial issues to the Board and Management on a regular basis. In addition, all departments and subsidiaries of TSMC are also required to conduct Control Self-Assessment (CSA) tests annually to review the effectiveness of the internal control system. (5) Training is a major component of our compliance program, conducted throughout the year to refresh TSMC’s employees’ commitment to ethical conduct, and to get updated information on laws and regulations related to their daily operations. As for our suppliers, we communicate our ethical culture to our business partners through live seminars to ensure their fully understanding of our commit to ethical conduct. 3. Implementation of Complaint Procedures (1) Does the company establish specific complaint and reward V (1) TSMC’s Audit Committee approved and TSMC has implemented the “Complaint (Continued) procedures, set up conveniently accessible complaint channels, and designate responsible individuals to handle the complaint received? (2) Does the company establish standard operation procedures for investigating the complaints received and ensuring such complaints are handled in a confidential manner? (3) Does the company adopt proper measures to prevent a complainant from retaliation for his/her filing a complaint? 4. Information Disclosure Does the company disclose its guidelines on business ethics as well as information about implementation of such guidelines on its website and Market Observation Post System (“MOPS”)? V V V Policy and Procedures for Certain Accounting and Legal Matters” and “Procedures for Ombudsman System” that allow employees or any whistleblowers with relevant evidence to report any financial, legal, or ethical irregularities anonymously through either the Ombudsman or directly to the Audit Committee. TSMC also requires all employees to stay vigilant and whistle-blow any noncompliance by anyone to their supervisors, the function head of Human Resources, the responsible corporate Vice President that oversees the Ombudsmen system, or to the Chairman of the Company’s Audit Committee directly. (2) TSMC treats any complaint and the investigation thereof in a confidential and sensitive manner, as is clearly stated in our bylaws. (3) TSMC strictly prohibits any form of retaliation against any individual who in good faith reports or helps with the investigation of any complaint, as is clearly stated in our bylaws. Our internal website provides guidelines and informative articles on ethics and honorable business conduct (in both Chinese and English) for employees’ easy access. In addition, TSMC discloses relevant policies and information in its Annual Report (which is also available at the MOPS) and CSR Report (available at: http://www.tsmc. com) None None (Continued) 49 Assessment Item Implementation Status Yes No Summary Non- implementation and Its Reason(s) 5. If the company has established corporate governance policies based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any discrepancy between the policies and their implementation. TSMC has established the Ethics Code to require that all employees, officers and board members comply with the Ethics Code and the other policies and procedures. There is no discrepancy between the Ethics Code, including its affiliate policies and procedures, and its implementation. For more details, please refer to “3.5 Code of Ethics and Business Conduct” on page 46-50 of this Annual Report. 6. Other important information to facilitate better understanding of the company’s corporate conduct and ethics compliance practices (e.g., review the company’s corporate conduct and ethics policy). For details on the implementation of TSMC’s Corporate Conduct and Ethics, please refer to “3.5 Code of Ethics and Business Conduct” on page 46-50 of this Annual Report. 3.6 Regulatory Compliance TSMC’s compliance systems are comprised of a series of legislation monitoring, developing and implementation of effective compliance policies and programs, training, and maintaining open reporting channels. Legislative Monitoring TSMC operates in many countries. To comply with governing legislation, applicable laws, regulations and regulatory expectations, we closely monitor domestic and foreign government policies and regulatory developments that could materially impact TSMC’s business and financial operations. Our Legal organization periodically updates our relevant internal departments, management and the Audit Committee of applicable regulatory changes so that internal teams ensure compliance with new regulatory requirements in a timely manner. We are also a proactive advocate for legislative and regulatory reform, and our comments and recommendations on legal reforms to the government have been accepted constructively. TSMC is increasingly dedicated to identifying potential regulatory issues and will continue to be involved in advocating public policy changes that foster a positive and fair business environment. Policy and Compliance Program Development and Implementation Under the framework of the Ethics Code, TSMC has established a regulatory compliance program that includes policies, guidelines and procedures in different compliance areas, including: Anti-corruption, Anti-harassment/discrimination, Employment Regulations, Antitrust (unfair competition), Environment, Export Control, Financial Reporting, Internal Controls, Insider Trading, Intellectual Property, Proprietary Information Protection (“PIP”), Personal Data Protection, Record Retention and Disposal, as well as procuring certain raw materials from socially responsible sources (“Conflict-free Minerals”). It is our belief that these policies are crucial in strengthening overall compliance with the Ethics Code and compliance program. TSMC, its employees and its subsidiaries are expected to fully understand and comply with all laws and regulations that govern our businesses, as well as relevant policies, guidelines and procedures, and make ethical decisions in every circumstance. Compliance Awareness Training Training is a major component of our regulatory compliance program, conducted throughout the year to refresh TSMC’s employees’ commitment to ethical conduct, and to get updated information on laws and regulations related to their daily operations. Highlights of our training include: • Awareness promotion emails to employees, posters at our facilities, and news articles, compliance guidelines, tips and FAQs which our employees can access through our intranet; • Live seminars focusing on specific topics such as Anti-Corruption, PIP, Intellectual Property, Personal Data Protection, Export Control Management and Antitrust. Training is made mandatory for those employees whose jobs are especially relevant to a particular topic to ensure sufficient awareness of relevant laws and internal policies; • On-line learning programs updated frequently to provide most up-to-date information and timely and flexible access for employees to understand the law and key compliance issues, covering topics of Anti-Corruption, Antitrust, Anti-harassment, Insider Trading, Export Control Management, PIP, and Personal Data Protection among others; • External training, in Taiwan and abroad, for TSMC’s Legal team to receive current developments of new laws and regulations, and for its lawyers to comply with applicable continuing legal education requirements. External experts are also invited to give in-house lectures on key issues. Reporting Channels TSMC provides multiple channels for reporting business conduct concerns to ensure that our conduct meets relevant legal requirements and the highest ethical standards under the Ethics Code. For more details about the reporting channels, please refer to “3.5 Code of Ethics and Business Conduct” on page 46-50 of this Annual Report. Major Accomplishments In 2018, TSMC achieved several major accomplishments in regulatory compliance: • Public Promotion Activities: In addition to fulfilling our obligations on regulatory compliance matters, TSMC exercised its civic duties as a responsible corporate citizen by advising the local government on law and policy reform, including urging the Government to amend certain outdated laws and regulations, which we believe were inconsistent with global practice, to improve Taiwan’s investment environment and economic development. In 2018, TSMC continued to advocate the importance of intellectual property protection and attended relevant events. In addition, TSMC advised the government agencies on the amendment of several laws like the Company Law, the Securities and Exchange Act, and environmental protection-related laws. • Internal Training: In 2018, TSMC offered a wide range of training courses covering topics of Anti-Corruption, Antitrust, Anti-harassment, Insider Trading, Export Control Management, PIP, and Personal Data Protection among others. These courses were all developed and conducted by internal and external experts and legal professionals. In order to ensure that all TSMC employees understand and comply with relevant requirements, TSMC actively promoted compliance through various channels in 2018, including: (1) providing an annual compulsory online course covering various important regulatory compliance topics – a total of about 30,000 employees completed this training course; (2) focusing on the technical personnel of the production lines in Taiwan’s fabs through communication meetings and multiple communication methods to promote the anti-corruption guidelines of TSMC – a total of more than 8,500 employees participated; (3) in response to the international interest in the protection of personal data, providing three face-to-face training courses, updated online courses, posters, e-mail and other publicity activities to strengthen the awareness of relevant departments on this topic – a total of more than 1,900 employees completed the updated online course. • Export Compliance: TSMC’s export management system (EMS) and policy have been in place for a number of years, and are continuously maintained to ensure compliance with all applicable regulations covering the export of information, technologies, products, materials and equipment. Our EMS was certified in September 2012 by the Bureau of Foreign Trade, the Taiwan regulator, as a qualified ICP (Internal Compliance Program) exporter. In 2018, TSMC successfully extended the validity period of its ICP certificate to October 2021 and was awarded in September for its outstanding international business export/import business record in 2017 from the Bureau of Foreign Trade. In addition, TSMC implements “No ECCN, No Shipment” control and customers are required to provide end use and export control classification number (ECCN) of their products, among other required information, for TSMC to apply for applicable export licenses. To further enhance relevant employees’ awareness on the export control requirements incurred by technology transfers, in 2018 we provided several face-to-face communication sessions to approximately 160 employees in relevant functions. • Supplier Management: In 2018, TSMC held two TSMC Responsible Supply Chain Forums for Taiwanese and overseas suppliers with a business location in Taiwan. During the meetings, practical experiences were shared and exchanged on various important issues such as ethics code, labor rights, environmental protection and occupational safety, with a total of 313 suppliers participating. • Conflict-Free Supply Chain: As a recognized global leader in the hi-tech supply chain, we acknowledge our corporate social responsibility to strive to procure conflict-free minerals in an effort to recognize humanitarian and ethical social principles that protect the dignity of all persons. Meanwhile, we have implemented a series of compliance safeguards in accordance with industry leading practices. In 2018, TSMC has made continued progress to ensure a conflict-free supply chain, and our conflict-free minerals compliance program has also been highly ranked by several independent third party rating agencies. • Personal Data Protection: Because of the importance of personal data protection, TSMC established the Rules of Privacy and Personal Data Protection to specify personal data can only be processed for legitimate purposes and describe the guidelines of personal data processing. TSMC also provides a Privacy and Cookies Policy online for its websites. In addition, a personal data protection taskforce composed of Legal, Human Resources, and IT divisions was established to assist in the implementation of and monitoring compliance with the rules. Relevant divisions (such as Human Resources) may also designate more detailed requirements for their business needs. See above for the internal training and promotion activities on personal data protection in 2018. 50 51 3.7 Internal Control System Execution Status 3.7.1 Statement of Internal Control System Taiwan Semiconductor Manufacturing Company Limited Statement of Internal Control System February 19, 2019 Based on the findings of a self-assessment, Taiwan Semiconductor Manufacturing Company Limited (TSMC) states the following with regard to its internal control system during the year 2018: 1. TSMC’s Board of Directors and management are responsible for establishing, implementing, and maintaining an adequate internal control system. Our internal control is a process designed to provide reasonable assurance over the effectiveness and efficiency of our operations (including profitability, performance and safeguarding of assets), reliability, timeliness, transparency of our reporting, and compliance with applicable rulings, laws and regulations. 2. An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing its stated objectives. Moreover, the effectiveness of an internal control system may be subject to changes due to extenuating circumstances beyond our control. Nevertheless, our internal control system contains self-monitoring mechanisms, and TSMC takes immediate remedial actions in response to any identified deficiencies. 3. TSMC evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the Regulations Governing the Establishment of Internal Control Systems by Public Companies (herein below, the “Regulations”). The criteria adopted by the Regulations identify five key components of managerial internal control: (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring activities. 4. TSMC has evaluated the design and operating effectiveness of its internal control system according to the aforesaid Regulations. 5. Based on the findings of such evaluation, TSMC believes that, on December 31, 2018, it has maintained, in all material respects, an effective internal control system (that includes the supervision and management of our subsidiaries), to provide reasonable assurance over our operational effectiveness and efficiency, reliability, timeliness, transparency of reporting, and compliance with applicable rulings, laws and regulations. 6. This Statement is an integral part of TSMC’s annual report and prospectus, and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Law. 7. This Statement was passed by the Board of Directors in their meeting held on February 19, 2019, with none of the eight attending directors expressing dissenting opinions, and the remainder all affirming the content of this Statement. Taiwan Semiconductor Manufacturing Company Limited Mark Liu Chairman C. C. Wei Chief Executive Officer 3.8 Status of Personnel Responsible for the Company’s Financial and Business Operation 3.8.1 Resignation or Dismissal of Chairman, President, and Heads of Accounting, Finance, Internal Audit and R&D during 2018 and as of the Date of this Annual Report: As of 02/28/2019 Title Name Chairman Morris Chang President and Co-Chief Executive Officer Mark Liu President and Co-Chief Executive Officer C.C. Wei On-board Date (Note 1) Date of Resignation or Dismissal Summary of Resignation or Dismissal 12/10/1986 06/05/2018 11/12/2013 06/05/2018 11/12/2013 06/05/2018 After having led the Company for over 31 years, TSMC’s Founder, Dr. Morris Chang, retired from the Company after the Annual Shareholders’ Meeting on June 5, 2018. At the meeting, TSMC shareholders elected a new Board of Directors, which then convened to elect Dr. Mark Liu as Chairman and Dr. C.C. Wei as Chief Executive Officer (CEO) and Vice Chairman, completing the transition of responsibilities. Note: On-board date means the official date of presiding the position.

3.8.2 Certification of Employees Whose Jobs are Related to the Release of the Company’s Financial Information Certification Certified Public Accountants (CPA) US Certified Public Accountants (US CPA) The Chartered Institute of Management Accountants (CIMA) Certified Internal Auditor (CIA) Chartered Financial Analyst (CFA) Certified Management Accountant (CMA) Financial Risk Manager (FRM) Certification in Control Self-Assessment (CCSA) Certification in Risk Management Assurance (CRMA) Certified Information Systems Auditor (CISA) Chief Fraud Examiner (CFE) BS7799/ISO 27001 Lead Auditor Number of Employees Internal Audit Finance 4 4 - 14 - - - 3 5 5 2 2 35 16 1 6 4 1 2 - - - - - 3.9 Information Regarding TSMC’s Independent Auditor 3.9.1 Audit Fees The Audit Committee approves all fees payable to TSMC’s independent auditor and recommends the same to the Board of Directors for further approval. The Board of Directors has authorized the Audit Committee to approve any increase not exceeding 10% of the approved fees. Unit: NT$ thousands Accounting Firm Name of CPA Audit Fee System Design Company Registration Human Resource Others Subtotal CPA’s Audit Period Remark Non-audit Fee Deloitte & Touche Mei-Yen Chiang, Yu-Feng Huang, and others 55,323 - - - - - 01/01/2018 - 12/31/2018 Note Note : Article 10.5.1 of Regulation Governing Information to be published in Annual Report of Public Companies was not applicable to TSMC. 3.7.2 If CPA Was Engaged to Conduct a Special Audit of Internal Control System, Provide Its Audit Report: None. 52 53 3.9.2 CPA’s Information (1) Former CPAs Date of Change Approved by Board of Directors on November 14, 2017 Reasons and Explanation of Changes In compliance with regulatory requirements on rotation, the engagement partner Yih-Hsin Kao was replaced by Mei-Yen Chiang starting from 2018. The co-signing partner remains to be Yu-Feng Huang. State whether the Appointment is Terminated or Rejected by the Consignor or CPAs Status 　　　　　　Client CPA Appointment terminated automatically Not available Appointment rejected (discontinued) Not available The Opinions other than Unmodified Opinion Issued in the Last Two Years and the Reasons for the Said Opinions (Note) Is there any disagreement in opinion with the issuer Supplementary Disclosure (Disclosures Specified in Article 10.6.1.4~7 of the Standards) None Yes No Explanation None Consignor Not available Not available Accounting principle or practice Disclosure of financial statements Auditing scope or procedures Others V Note: Starting in 2016, the new auditing standard of the Republic of China requires “An Unqualified Opinion” be replaced by “An Unmodified Opinion”. (2) Successor CPAs Accounting Firm CPA Date of Engagement Deloitte & Touche Mei-Yen Chiang and Yu-Feng Huang Approved by Board of Directors on November 14, 2017 Prior to the Formal Engagement, Any Inquiry or Consultation on the Accounting Treatment or Accounting Principles for Specific Transactions, and the Type of Audit Opinion that Might be Rendered on the Financial Report Written Opinions from the Successor CPAs that are Different from the Former CPA’s Opinions None None (3) The Reply of Former CPAs on Article 10.6.1 and Article 10.6.2.3 of the Standards: None. 3.9.3 TSMC’s Chairman, Directors, Chief Executive Officer, Chief Financial Officer, and Managers in Charge of Its Finance and Accounting Operations Did Not Hold Any Positions within TSMC’s Independent Audit Firm or Its Affiliates in the Most Recent Year. 3.9.4 Evaluation of the External Auditor’s Independence The Audit Committee regularly monitors the independence of TSMC’s external auditor by conducting the following evaluation and reports the same to the Board of Directors: 1. The auditor’s independence declaration 2. The Audit Committee pre-approves all audit and non-audit services conducted by the auditor to ensure that the non- audit services do not influence the results of the audit 3. Ensure the audit partner rotates every five years 4. Annually evaluate the independence of the external auditor based on the results of the auditor survey 3.10 Material Information Management Procedure TSMC has established relevant procedures for managing and disclosing material information. The responsible departments regularly remind all officers and employees about the need to comply with these procedures and other applicable regulations when they become aware of any potential material information and the possible need to publicly disclose such information. To ensure that our employees, managers and board directors are aware of and comply with these relevant regulations, TSMC has also established our “Insider Trading Policy”. To reduce the risk of insider trading, on-line training programs and live seminars are conducted periodically. In addition, employees can familiarize themselves with relevant internal policies and training articles by easily accessing TSMC’s Legal Organization intranet website. 54 55 Capital and Shares 4.1 Capital and Shares 4.1.1 Capitalization Unit: Share/NT$ Authorized Share Capital Capital Stock Month/ Year Issue Price (Per Share) Shares Amount Shares Amount Sources of Capital Remark Capital Increase by Assets Other than Cash 07/2015 10 28,050,000,000 280,500,000,000 25,930,380,458 259,303,804,580 Exercise of Employee Stock None Options: NT$7,180,220 4.1.2 Capital and Shares Unit: Share Type of Stock Issued Shares Authorized Share Capital Listed Non-listed Total Unissued Shares 4 As of 02/28/2019 Date of Approval & Approval Document No. 07/13/2015 Zhu Shang Tzu No. 1040020526
As of 02/28/2019 Total Common Stock 25,930,380,458 - 25,930,380,458 2,119,619,542 28,050,000,000 Shelf Registration: None. 4.1.3 Composition of Shareholders Common Share Type of Shareholders Number of Shareholders Shareholding Holding Percentage Government Agencies Financial Institutions Other Juridical Persons As of 07/01/2018 (last record date) Domestic Natural Persons Total Foreign Institutions and Natural Persons 8 166 1,317 4,433 353,109 359,033 1,653,713,591 994,136,671 1,166,393,138 20,030,594,823 2,085,542,235 25,930,380,458 6.38% 3.83% 4.50% 77.25% 8.04% 100.00% 57 Distribution Profile of Share Ownership Common Share Shareholder Ownership (Unit: Share) Number of Shareholders 1-999 1,000-5,000 5,001-10,000 10,001-15,000 15,001-20,000 20,001-30,000 30,001-40,000 40,001-50,000 50,001-100,000 100,001-200,000 200,001-400,000 400,001-600,000 600,001-800,000 800,001-1,000,000 Over 1,000,001 Total 145,159 158,212 25,270 9,414 4,530 4,761 2,294 1,425 2,847 1,674 1,056 467 284 202 1,438 359,033 Preferred Shares: None. 4.1.4 Major Shareholders Common Share Shareholders ADR-Taiwan Semiconductor Manufacturing Company, Ltd. National Development Fund, Executive Yuan Government of Singapore JPMorgan Chase Bank N.A. Taipei Branch in Custody for EuroPacific Growth Fund Norges Bank JPMorgan Chase Bank N.A. Taipei Branch in Custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds Cathay Life Insurance Co., Ltd. JPMorgan Chase Bank N.A. Taipei Branch in Custody for Oppenheimer Developing Markets Funds, managed by Oppenheimer Funds, Inc. Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International Equity Index Funds New Labor Pension Fund Ownership 31,348,831 319,546,061 183,241,073 115,145,590 79,962,808 116,345,899 79,637,876 64,240,732 199,148,582 234,056,220 296,673,341 228,213,351 197,492,674 181,809,127 23,603,518,293 25,930,380,458 As of 07/01/2018 (last record date) Ownership Percentage 0.12% 1.23% 0.71% 0.44% 0.31% 0.45% 0.31% 0.25% 0.77% 0.90% 1.14% 0.88% 0.76% 0.70% 91.03% 100.00% Total Shares Owned Ownership Percentage As of 07/01/2018 (last record date) 5,340,787,298 1,653,709,980 691,147,172 362,293,649 337,945,515 327,124,263 299,802,235 281,307,429 224,489,845 221,349,500 20.60% 6.38% 2.67% 1.40% 1.30% 1.26% 1.16% 1.08% 0.87% 0.85% 58 4.1.5 Net Change in Shareholding by Directors, Management and Shareholders with 10% Shareholdings or More Unit: Share Title Name Founder and Former Chairman Morris Chang (Note 1) Chairman Mark Liu Chief Executive Officer & Vice Chairman C.C. Wei Director F.C. Tseng Director National Development Fund, Executive Yuan Representative: Mei-ling Chen Independent Director Sir Peter L. Bonfield Independent Director Stan Shih Independent Director Thomas J. Engibous (Note 1) Independent Director Kok-Choo Chen Independent Director Michael R. Splinter Senior Vice President and Chief Information Officer Stephen T. Tso (Note 2) Senior Vice President, Chief Financial Officer and Spokesperson Lora Ho Senior Vice President Wei-Jen Lo Senior Vice President Rick Cassidy Senior Vice President Y.P. Chin Senior Vice President Y.J. Mii Senior Vice President J.K. Lin Senior Vice President J.K. Wang Vice President M.C. Tzeng (Note 2) Vice President and Chief Technology Officer Jack Sun (Note 2) 2018 01/01/2019 - 02/28/2019 Net Change in Shareholding Net Change in Shares Pledged Net Change in Shareholding Net Change in Shares Pledged - - - - - - - - - - - (30,000) 30,000 - - (1,000) - - - - (3,000) - - - - - - - - - - - - (200,000) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Continued) 59 Title Name Vice President N.S. Tsai Vice President Irene Sun Vice President Cliff Hou Vice President Been-Jon Woo (Note 2) Vice President and General Counsel Sylvia Fang Vice President Connie Ma Vice President Y.L. Wang Vice President Doug Yu Vice President and TSMC Fellow Alexander Kalnitsky Vice President Kevin Zhang Vice President and TSMC Fellow T.S. Chang (Note 3) Vice President Michael Wu (Note 3) Vice President Min Cao (Note 3) Vice President H.-S. Philip Wong (Note 4) Vice President Marvin Liao (Note 5) Vice President Y.H. Liaw (Note 6) 2018 01/01/2019 - 02/28/2019 Net Change in Shareholding Net Change in Shares Pledged Net Change in Shareholding Net Change in Shares Pledged (63,000) - - 15,000 - 37,000 - - - - - 10,000 10,000 - - - - - - - (250,000) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 210,000 - - - - - - - - - - - Note 1: Founder and former Chairman Dr. Morris Chang retired after the Annual Shareholders’ Meeting on June 5, 2018. Mr. Thomas J. Engibous resigned as an Independent Director due to health reasons, effective January 1, 2019. Note 2: Senior Vice President and Chief Information Officer Dr. Stephen T. Tso retired, effective March 1, 2018. Vice President and Chief Technology Officer Dr. Jack Sun retired, effective August 1, 2018. Vice President M.C. Tzeng retired, effective November 1, 2018. Vice President Dr. Been-Jon Woo retired, effective January 1, 2019. Their shareholdings were not disclosed after that date. Note 3: Dr. T.S. Chang, Dr. Michael Wu and Dr. Min Cao were promoted to Vice President, effective February 13, 2018. Their shareholdings were disclosed starting from that date. Note 4: Dr. H.-S. Philip Wong was promoted to Vice President, effective August 14, 2018. His shareholding was disclosed starting from that date. Note 5: Dr. Marvin Liao was promoted to Vice President, effective November 13, 2018. His shareholding was disclosed starting from that date. Note 6: Mr. Y.H. Liaw was promoted to Vice President, effective February 19, 2019. His shareholding was disclosed starting from that date. 4.1.6 Stock Trade with Related Party: None. 4.1.7 Stock Pledge with Related Party: None. 4.1.8 Related Party Relationship among TSMC’s 10 Largest Shareholders Common Share Name Current Shareholding Spouse and Minor Shareholding TSMC Shareholding by Nominee Arrangement As of 07/01/2018 (last record date) Name and Relationship between TSMC’s Shareholders ADR-Taiwan Semiconductor Manufacturing Company, Ltd. 5,340,787,298 20.60% Shares % Shares 1,653,709,980 6.38% - 691,147,172 362,293,649 337,945,515 327,124,263 - 2.67% 1.40% 1.30% 1.26% % N/A N/A - N/A N/A N/A N/A Shares % Name Relationship N/A N/A - N/A N/A N/A N/A N/A N/A None None - None N/A N/A N/A N/A None None None None None None None None None None None N/A N/A - N/A N/A N/A N/A National Development Fund, Executive Yuan 　Representative: Mei-ling Chen Government of Singapore JPMorgan Chase Bank N.A. Taipei Branch in Custody for EuroPacific Growth Fund Norges Bank JPMorgan Chase Bank N.A. Taipei Branch in Custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds Cathay Life Insurance Co., Ltd. 　Chairman: Tiao-kuei Huang JPMorgan Chase Bank N.A. Taipei Branch in Custody for Oppenheimer Developing Markets Funds, managed by Oppenheimer Funds, Inc. 299,802,235 1.16% N/A N/A N/A N/A None None Data Not Available 281,307,429 1.08% N/A N/A N/A N/A None None Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International Equity Index Funds 224,489,845 0.87% New Labor Pension Fund 221,349,500 0.85% N/A N/A N/A N/A N/A N/A N/A None N/A None None None 4.1.9 Long-term Investment Ownership Ownership by TSMC (1) Ownership by Directors, Managers and Directly/Indirectly Owned Subsidiaries (2) Total Ownership (1) + (2) Shares % Shares % Shares % As of 12/31/2018 Long-term Investment Equity Method: TSMC Partners, Ltd. TSMC Global Ltd. TSMC North America TSMC Europe B.V. TSMC Japan Limited TSMC Korea Limited 988,268,244 11,284 11,000,000 200 6,000 80,000 100% 100% 100% 100% 100% 100% - - - - - - TSMC China Company Limited Not Applicable (Note 1) 100% Not Applicable (Note 1) TSMC Nanjing Company Limited Not Applicable (Note 1) 100% Not Applicable (Note 1) TSMC Solar Europe GmbH (Note 2) 800 100% VisEra Technologies Company Ltd. 253,120,000 86.94% Systems on Silicon Manufacturing Co. Pte. Ltd. 313,603 38.79% - - - - - - - - - - - - - - 988,268,244 11,284 11,000,000 200 6,000 80,000 Not Applicable (Note 1) Not Applicable (Note 1) 800 100% 100% 100% 100% 100% 100% 100% 100% 100% 253,120,000 86.94% 313,603 38.79% 60 61 Vanguard International Semiconductor Corp. 464,223,493 28.32% 275,614,355 16.82% (Note 3) 739,837,848 45.14% Xintec Inc. Global UniChip Corporation 111,281,925 40.95% 46,687,859 34.84% - - VentureTech Alliance Fund II, L.P. Not Applicable (Note 1) 98.00% Not Applicable (Note 1) VentureTech Alliance Fund III, L.P. Not Applicable (Note 1) 98.00% Not Applicable (Note 1) - - - - 111,281,925 40.95% 46,687,859 34.84% Not Applicable (Note 1) 98.00% Not Applicable (Note 1) 98.00% Note 1: Not applicable. These firms do not issue shares. TSMC’s investment is measured as a percentage of ownership. Note 2: TSMC Solar Europe GmbH is under liquidation procedures. Note 3: TSMC’s Director, National Development Fund of Executive Yuan, holds 16.72% while other Directors and Management hold 0.10%. 4.1.10 Share Information TSMC’s earnings per share in 2018 increased 2.3% from 2017 to NT$13.54 per share. The following table details TSMC’s market price, net worth, earnings, and dividends per common share, as well as other data regarding return on investment. Proposal to Distribute 2018 Earnings Unit: NT$ Cash Dividends Paid to Common Shareholders (NT$[8] per share) 207,443,043,664 Market Price, Net Worth, Earnings, and Dividends Per Common Share Unit: NT$, except for weighted average shares and return on investment ratios 4.1.12 Compensation to Directors and Profit Sharing Bonus to Employees 01/01/2019 - 02/28/2019 Based on TSMC’s Articles of Incorporation, before paying dividends or bonuses to shareholders, TSMC shall set aside not more than 0.3% of its annual profit to directors as compensation and not less than 1% to employees as profit sharing bonus. Item Market Price Per Share (Note 1) Highest Market Price Lowest Market Price Average Market Price Net Worth Per Share Before Distribution After Distribution Earnings Per Share Weighted Average Shares (thousand shares) Diluted Earnings Per Share Dividends Per Share Cash Dividends Accumulated Undistributed Dividend Return on Investment Price/Earnings Ratio (Note 2) Price/Dividend Ratio (Note 3) Cash Dividend Yield (Note 4) 2017 244.00 179.50 210.09 58.70 50.70 25,930,380 13.23 8.00 - 15.88 26.26 3.8% 2018 266.00 212.00 237.45 64.67 56.67 (Note 5) 25,930,380 13.54 8.00 (Note 5) - 17.54 29.68 (Note 5) 3.4% (Note 5) 239.50 208.00 224.25 - - - - - - - - - Note 1: Referred to TWSE website Note 2: Price/Earnings Ratio = Average Market Price/ Diluted Earnings Per Share Note 3: Price/Dividend Ratio = Average Market Price/Cash Dividends Per Share Note 4: Cash Dividend Yield = Cash Dividends Per Share/Average Market Price Note 5: Pending shareholders' approval 4.1.11 Dividend Policy and Distribution of Earnings TSMC does not pay dividends when there are no profits or retained earnings. TSMC has distributed cash dividends every year to its shareholders since 2004. Payment of dividends (including in cash and in stock) in respect of the prior year is made following approval by the annual general meeting of shareholders. The R.O.C. Company Act, amended in August 2018, allows a company, as authorized by its Articles of Incorporation, to distribute dividends on a quarterly basis or a semi-annual basis and to have its board of directors to approve the dividends in cash. On February 19, 2019, TSMC’s board of directors adopted a proposal recommending distribution of a 2018 cash dividend of NT$8 per common share and resolved to submit the proposal for approval by the annual general meeting of shareholders to be held on June 5, 2019 as shown in the table below. TSMC’s board of directors also resolved to submit for approval at the annual general meeting of shareholders the proposed amendments to TSMC’s Articles of Incorporation to authorize the Company’s board of directors to approve cash dividends after the close of each quarter. Subject to the shareholders’ approval of such amendments, TSMC’s board of directors will approve each quarter’s dividend in the following quarter’s board meeting, after which the dividend will be distributed within six months. TSMC’s board of directors plans to approve a cash dividend of NT$2 per common share for the first quarter of 2019 in the second quarter of 2019, which will be paid in the fourth quarter of 2019. Therefore, all shareholders of TSMC are expected to receive a cash dividend of NT$10 per share in total in 2019. In the future, TSMC intends to continue its stable dividend policy and return about 70% of free cash flow to shareholders every year. As the Company’s business continues to grow and generates greater amounts of free cash flow, it expects to maintain a sustainable quarterly cash dividend, and to distribute the cash dividend each year at a level not lower than the year before. As resolved by TSMC’s Board of Directors on February 19, 2019, a profit sharing bonus to employees was expensed based on a certain percentage of 2018 profit; compensation to directors was expensed based on the estimated amount of payment. If the actual amounts subsequently paid differ from the above estimated amounts, the differences will be recorded in the year paid as a change in accounting estimate. 2018 Directors’ Compensation and Employees’ Profit Sharing Bonus Directors’ Compensation (Cash) Employee’s Profit Sharing Bonus (Cash) Total Board Resolution (02/19/2019) Amount (NT$) 349,271,420 23,570,040,330 23,919,311,750 Note: NT$23,570,040,330 employees’ cash bonus has already been distributed following each quarter of 2018. The above employees’ profit sharing bonus will be distributed in July, 2019.
2017 Directors’ Compensation and Employees’ Profit Sharing Bonus Directors’ Compensation (Cash) Employees’ Profit Sharing Bonus (Cash) Total Board Resolution (02/13/2018) Actual Result (Note) Amount (NT$) 368,919,380 23,019,082,263 23,388,001,643 Amount (NT$) 368,919,380 23,019,082,263 23,388,001,643 Note: The above Directors' Compensation and Employees’ Profit Sharing Bonus were expensed under the Company’s 2017 statement of comprehensive income and the same amounts were approved by the Board of Directors at its meeting on February 13, 2018.
4.1.13 Impact to 2019 Business Performance and EPS Resulting from Stock Dividend Distribution: Not applicable. 4.1.14 Buyback of Common Stock: None. 62 63 4.2 Issuance of Corporate Bonds 4.2.1 Corporate Bonds NTD Corporate Bonds As of 02/28/2019 Issuance Issuing Date Denomination Offering Price Total Amount Coupon Tenor and Maturity Date Outstanding Credit Rating Trustee Guarantor Underwriter Legal Counsel Auditor Repayment Redemption or Early Repayment Clause Domestic Unsecured Bond (101-1) Domestic Unsecured Bond (101-2) Domestic Unsecured Bond (101-3) Domestic Unsecured Bond (101-4) Domestic Unsecured Bond (102-1) Domestic Unsecured Bond (102-2) Domestic Unsecured Bond (102-3) Domestic Unsecured Bond (102-4) 08/02/2012 NT$10,000,000 Par NT$18,900,000,000 Tranche A: 1.28% p.a. Tranche B: 1.40% p.a. Tranche A: 5 years Maturity: 08/02/2017 Tranche B: 7 years Maturity: 08/02/2019 09/26/2012 NT$10,000,000 Par NT$21,700,000,000 Tranche A: 1.28% p.a. Tranche B: 1.39% p.a. Tranche A: 5 years Maturity: 09/26/2017 Tranche B: 7 years Maturity: 09/26/2019 10/09/2012 NT$10,000,000 Par NT$4,400,000,000 1.53% p.a. Tenor: 10 years Maturity: 10/09/2022 01/04/2013 NT$10,000,000 Par 02/06/2013 NT$10,000,000 Par 07/16/2013 NT$10,000,000 Par 08/09/2013 NT$10,000,000 Par 09/25/2013 NT$10,000,000 Par NT$23,600,000,000 NT$21,400,000,000 NT$13,700,000,000 NT$12,500,000,000 NT$15,000,000,000 Tranche A: 1.23% p.a. Tranche B: 1.35% p.a. Tranche C: 1.49% p.a. Tranche A: 1.23% p.a. Tranche B: 1.38% p.a. Tranche C: 1.50% p.a. Tranche A: 1.50% p.a. Tranche B: 1.70% p.a. Tranche A: 1.34% p.a. Tranche B: 1.52% p.a. Tranche A: 5 years Maturity: 01/04/2018 Tranche B: 7 years Maturity: 01/04/2020 Tranche C: 10 years Maturity: 01/04/2023 Tranche A: 5 years Maturity: 02/06/2018 Tranche B: 7 years Maturity: 02/06/2020 Tranche C: 10 years Maturity: 02/06/2023 Tranche A: 7 years Maturity: 07/16/2020 Tranche B: 10 years Maturity: 07/16/2023 Tranche A: 4 years Maturity: 08/09/2017 Tranche B: 6 years Maturity: 08/09/2019 Tranche A: 1.35% p.a. Tranche B: 1.45% p.a. Tranche C: 1.60% p.a. Tranche D: 1.85% p.a. Tranche E: 2.05% p.a. Tranche F: 2.10% p.a. Tranche A: 3 years Maturity: 09/25/2016 Tranche B: 4 years Maturity: 09/25/2017 Tranche C: 5.5 years Maturity: 03/25/2019 Tranche D: 7.5 years Maturity: 03/25/2021 Tranche E: 9.5 years Maturity: 03/25/2023 Tranche F: 10 years Maturity: 09/25/2023 NT$9,000,000,000 NT$9,000,000,000 NT$4,400,000,000 NT$13,000,000,000 NT$15,200,000,000 NT$13,700,000,000 NT$8,500,000,000 NT$12,000,000,000 twAAA (Taiwan Ratings Corporation, 07/02/2012) twAAA (Taiwan Ratings Corporation, 08/23/2012) twAAA (Taiwan Ratings Corporation, 09/04/2012) twAAA (Taiwan Ratings Corporation, 11/29/2012) twAAA (Taiwan Ratings Corporation, 12/18/2012) twAAA (Taiwan Ratings Corporation, 05/16/2013) twAAA (Taiwan Ratings Corporation, 07/15/2013) twAAA (Taiwan Ratings Corporation, 08/06/2013) Mega International Commercial Bank Taipei Fubon Commercial Bank None Not Applicable Modern Law Office Deloitte & Touche Bullet None None None Covenants Other Rights of Bondholders Conversion Right Amount of Converted or Exchanged Common Shares, ADRs or Other Securities Not Applicable Dilution Effect and Other Adverse Effects on Existing Shareholders Custodian None None 4.2.2 Convertible Bond: None. 4.2.3 Exchangeable Bond: None. 4.2.4 Shelf Registration: None. 4.2.5 Bond with Warrants: None. 64 65 4.3 Preferred Shares 4.3.1 Preferred Share: None. 4.3.2 Preferred Share with Warrants: None. 4.4 Issuance of American Depositary Shares Issuing Date 10/08/1997 11/20/1998 01/12/1999 - 01/14/1999 07/15/1999 08/23/1999 - 09/09/1999 02/22/2000 - 03/08/2000 04/17/2000 06/07/2000 - 06/15/2000 05/14/2001 - 06/11/2001 06/12/2001 11/27/2001 02/07/2002 - 02/08/2002 11/21/2002 - 12/19/2002 07/14/2003 - 07/21/2003 11/14/2003 08/10/2005 - 09/08/2005 05/23/2007 Total Amount (US$) 594,720,000 184,554,440 35,500,000 296,499,641 158,897,089 379,134,599 224,640,000 1,167,873,850 240,999,660 297,649,640 320,600,000 1,001,650,000 160,097,914 908,514,880 1,077,000,000 1,402,036,500 2,563,200,000 Offering Price Per ADS (US$) 24.78 15.26 17.75 24.516 28.964 57.79 56.16 35.75 20.63 20.63 16.03 16.75 8.73 10.40 10.77 8.6 10.68 Units Issued 24,000,000 12,094,000 2,000,000 12,094,000 5,486,000 6,560,000 4,000,000 32,667,800 11,682,000 14,428,000 20,000,000 59,800,000 18,348,000 87,357,200 100,000,000 163,027,500 240,000,000 Common Shares Represented Underlying Securities 120,000,000 60,470,000 10,000,000 60,470,000 27,430,000 32,800,000 20,000,000 163,339,000 58,410,000 72,140,000 100,000,000 299,000,000 91,740,000 436,786,000 500,000,000 815,137,500 1,200,000,000 TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders (Pursuant to ADR Conversion Sale Program) TSMC Common Shares from Selling Shareholders (Pursuant to ADR Conversion Sale Program) TSMC Common Shares from Selling Shareholders Cash Offering and TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders (Pursuant to ADR Conversion Sale Program) TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders (Pursuant to ADR Conversion Sale Program) TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders TSMC Common Shares from Selling Shareholders (Note 4) (Note 3) Apportionment of Expenses for Issuance and Maintenance (Note 3) Issuance and Listing NYSE Rights and Obligations of ADS Holders Same as those of Common Share Holders Trustee Not Applicable Depositary Bank Citibank, N.A. – New York Custodian Bank (Note 1) Citibank, N.A. – Taipei Branch As of February 28, 2019, total number of outstanding ADSs was 1,068,051,367. See Deposit Agreement and Custody Agreement for Details ADSs Outstanding (Note 2) Terms and Conditions in the Deposit Agreement and Custody Agreement Closing Price Per ADS (US$; source: Bloomberg) 2018 01/01/2019 - 02/28/2019 High Low Average High Low Average 46.38 35.29 40.62 39.60 34.36 37.39 Note 1: Citibank, N.A., Taipei Branch changed its name to “Citibank Taiwan Limited” in 2009. Note 2: TSMC has in aggregate issued 813,544,500 ADSs since 1997, which, if taking into consideration stock dividends distributed over the period, would amount to 1,147,835,205 ADSs. Stock dividends distributed in 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008 and 2009 were 45%, 23%, 28%, 40%, 10%, 8%, 14.08668%, 4.99971%, 2.99903%, 0.49991%, 0.50417% and 0.49998%, respectively. As of February 28, 2019, total number of outstanding ADSs was 1,068,051,367 after 79,783,838 were redeemed. Note 3: All fees and expenses such as underwriting fees, legal fees, listing fees and other expenses related to issuance of ADSs were borne by the selling shareholders, while maintenance expenses such as annual listing fees and accountant fees were borne by TSMC. Note 4: All fees and expenses such as underwriting fees, legal fees, listing fees and other expenses related to issuance of ADSs were borne proportionately by TSMC and the selling shareholders, while maintenance expenses such as annual listing fees and accountant fees were borne by TSMC. 66 67 4.5 Status of Employee Stock Option Plan 4.5.1 Issuance of Employee Stock Options: None. 4.5.2 Employee Stock Options Granted to Management Team and to Top 10 Employees: None. 4.6 Status of Employee Restricted Stock 4.6.1 Status of Employee Restricted Stock: None. 4.6.2 Employee Restricted Stock Granted to Management Team and to Top 10 Employees: None. 4.7 Status of New Share Issuance in Connection with Mergers and Acquisitions: None. 4.8 Financing Plans and Implementation: Not applicable. 68 69 Operational Highlights 5.1 Business Activities 5.1.1 Business Scope 5 As the founder and leader of the dedicated semiconductor foundry segment, TSMC provides a full range of integrated semiconductor foundry services, including the most advanced process technologies, leading specialty technologies, the most comprehensive design ecosystem support, excellent manufacturing productivity and quality, advanced mask and packaging services, and so on, to meet a growing variety of customer needs. The Company strives to provide the best overall value to its customers and views customer success as TSMC success. As a result, TSMC has won customer trust from around the world and has experienced strong growth and success. 5.1.2 Customer Applications TSMC manufactured 10,436 different products for 481 customers in 2018. These chips were used across a broad spectrum of electronic applications, including computers and peripherals, information appliances, wired and wireless communication systems, servers and data center, automotive and industrial equipment, consumer electronics such as digital TVs, game consoles, digital cameras, IoT and wearables, and many other devices and applications. The rapid ongoing evolution of end products prompts customers to pursue differentiation using TSMC’s innovative technologies and services and, at the same time, spurs TSMC’s own development of technology. As always, success depends on leading rather than following industry trends. 5.1.3 Consolidated Shipments and Net Revenue in 2018 and 2017 Unit: Shipments (thousand 12-inch equivalent wafers) / Net Revenue (NT$ thousands) Wafer Others (Note 2) Total Domestic (Note 1) Export Domestic (Note 1) Export Domestic (Note 1) Export 2018 2017 Shipments Net Revenue (Note 3) Shipments Net Revenue (Note 3) 1,575 9,177 N/A N/A 1,575 9,177 81,718,513 829,577,851 8,398,094 111,779,099 90,116,607 941,356,950 1,650 8,799 N/A N/A 1,650 8,799 89,888,258 785,573,187 7,900,379 94,085,417 97,788,637 879,658,604 Note 1: Domestic means sales to Taiwan. Note 2: Others mainly include revenue associated with packaging and testing services, mask making, design services, and royalties. Note 3: Commencing in 2018, the Company began to break down the net revenue by product based on a new method which associates most estimated sales returns and allowances with individual sales transactions, as opposed to the previous method which allocated sales returns and allowances based on the aforementioned gross revenue. The Company believes the new method provides a more relevant breakdown than the previous one. On a comparable basis, the classification of 2017 has been revised accordingly. 5.1.4 Production in 2018 and 2017 Unit: Capacity / Output (million 12-inch equivalent wafers) / Amount (NT$ millions) Year 2018 2017 Wafers Capacity 12 - 13 11 - 12 Output 10 - 11 10 - 11 Amount 478,269 454,603 71 5.2 Technology Leadership 5.2.1 R&D Organization and Investment with leading universities throughout the world for two grand purposes; the advancement of semiconductor technologies and the incubation of talents for the future. In 2018 TSMC continued to invest in research and development, with total R&D expenditures amounting to 8% of revenue, a level that equals or exceeds the R&D investment of many other leading high-tech companies. Despite the increasingly complex and difficult challenge to continue extending Moore’s Law, which calls for the doubling of semiconductor computing power every two years, TSMC has focused its R&D efforts on enabling the Company to continually offer its customers first-to-market, leading-edge technologies and design solutions that contribute to their product success. In 2018, following the volume ramp-up of the industry leading 7nm technology, the R&D organization completed the transfer to manufacturing of the 7nm+ technology, an enhanced version of 7nm. At the same time, the R&D organization continues to fuel the pipeline of technological innovation needed to maintain industry leadership. TSMC’s 5nm technology, the fifth generation of technology platform to make use of 3D FinFET transistors, is on track for risk production in 2019. TSMC’s 3nm technology has entered full development stage and the definition and intensive early development efforts have been progressing for nodes beyond 3nm. In addition to CMOS logic, TSMC conducts R&D on a wide range of other semiconductor technologies that provide the functionality required by customers for mobile SoC and other applications. Highlights in 2018 include: high-volume production of Gen-3 Integrated Fan-Out Package on Package (InFO-PoP) for mobile application processor packaging; successful qualification of Gen-4 InFO-PoP advanced packaging technology for mobile applications and Integrated Fan-Out on Substrate (InFO-oS) for HPC applications; development of industry’s unique 90nm BCD (Bipolar-CMOS-DMOS) technology offering leading-edge 5-16V power devices and dense logic integration with competitive cost, as the next generation mobile Power Management IC (PMIC) solution; stable yield and reliability demonstration of 28nm node eFlash for high performance mobile computing and high performance low-leakage platforms with expected technical qualification for automobile electronics and micro controller units (MCU) in 2019; mass production launch of new generation CMOS image sensors of sub-micron pixel for mobile applications and development of Ge-on-Si sensor for three dimensional range sensing applications with superior performance. In 2018, TSMC maintained strong partnerships with world-class research institutions, including SRC in the U.S. and IMEC in Belgium. TSMC also continued to expand research collaboration R&D Expenditures Amount: NT$ thousands 3 6 4 , 2 3 7 , 0 8 9 6 5 , 5 9 8 , 5 8 8 8 0 , 8 7 0 , 3 1 2017 2018 01/01/2019 - 02/28/2019 5.2.2 R&D Accomplishments in 2018 Highlights • 5nm Technology Even though the semiconductor industry is approaching the physical limits of silicon, 5nm technology still follows Moore’s Law and delivers substantial density improvement with better performance at same power or lower power consumption at comparable performance. In 2018, TSMC continued full development of 5nm focusing on manufacturing baseline process setup, yield learning, transistor and interconnect R/C performance improvement and reliability evaluation. The SRAM and logic yield results met the required expectations and TSMC is thus now committed to the goal of risk production in 2019. • 3nm Technology Development of the 3nm FinFET (Fin field-effect transistor) technology, targeting both mobile applications and high performance computing devices, made good progress in 2018. 3nm FinFET technology is expected to offer excellent improvement in speed, power, density and cost over 5nm FinFET technology. • Lithography Technology The main focus for R&D lithography in 2018 was 7nm+ technology transfer, 5nm technology development and preparation for development of 3nm technology and beyond. For 7nm+ development, the technology was smoothly transferred and R&D is working with the fab to clean up any remaining patterning issues. As for 5nm development, EUV (extreme ultraviolet) lithography showed promising imaging capability with expected good wafer yield. R&D is working on EUV cost reduction, mask defect reduction in scanner, and mask-making capability improvement. In 2019, TSMC will focus intently on improving EUV quality and adopting more EUV layers in 3nm technology and beyond. In 2018, the EUV program made continuous improvement in light-source power and stability, which has enabled faster learning rates and process development for advanced nodes. Additional progress was made with resist process, pellicle, and related mask blanks, as EUV technology moves closer to full scale R&D and manufacturing readiness. • Mask Technology Mask technology is an integral part of advanced lithography. In 2018, R&D successfully implemented EUV mask technology into 7nm+ and 5nm nodes. Solid progress was made on the production yield and the reduction of blank native defects to meet high-volume manufacturing requirements. Integrated Interconnect and Packaging Wafer level system integration (WLSI) is built upon TSMC’s wafer processes and capacity core competency to meet customer system-level and packaging needs in performance, power, profile, cycle time and cost. WLSI encompasses several complementary platforms, including TSMC-SoICTM, CoWoS®, InFO and Under- Bump-Metallurgy Free Integration (UFI). Customers can leverage TSMC’s unique wafer-to-package turnkey services for optimal time-to-market of highly competitive products. • 3D IC and TSMC-SoICTM (System-on-Integrated Chips) TSMC-SoICTM is an innovative frontend wafer-process-based platform that integrates multi-chip, multi-tier, multi-function and mix-and-match technologies to enable high speed, high bandwidth, low power, high pitch density, and minimal footprint and stack-height heterogeneous 3D IC integration. This technology not only helps to sustain Moore’s Law regarding chip partition and on-chip integration, but also enables off-chip heterogeneous system-level scaling. TSMC has worked with customers to develop TSMC-SoICTM designs for high-performance computing system applications. • Si Interposer and CoWoS® (Chip on Wafer on Substrate) TSMC continues to see good growth momentum in CoWoS® demand in HPC and AI applications. CoWoS® is the main platform for heterogeneous integration of advanced node SoC chip and high bandwidth memory (HBM). TSMC’s leadership in this technology is further strengthened by robust manufacturing yield, growing capabilities on larger interposer and package sizes, as well as feature-rich interposers such as embedded capacitors in the Si interposer. • Advanced Fan-Out and InFO (Integrated Fan-Out) In 2018, TSMC continued to lead in high-volume manufacturing of InFO-PoP Gen-3 packaging for mobile applications processors and Integrated Fan-Out on Substrate (InFO-oS) applications. InFO-PoP Gen-4 was also successfully qualified for mobile applications and started developing multi-die integration with fine-pitch die-to-die interconnection and InFO-UHD (ultra-high density) for both mobile and HPC applications. Based on InFO- PoP Gen-4 qualification, it could have smaller package size with finer RDL (redistribution layer) line, BGA (ball grid array) pitch. Gen-4 also enhances thermal performance. The newly developed InFO-PoP could be stacked with various commercial DRAM devices with competitive performance. This InFO-PoP with backside RDL will boost penetration into mobile applications and processor applications with wide coverage from premium to mid-end market and was High-Volume Manufacturing (HVM) ready in 2019. New generation IPD (integrated passive device) technology, which provides high density capacitors and low ESL (effective series inductance) for electrical performance boost, passed qualification on InFO-PoP. Enhanced InFO-PoP will benefit AI and 5G mobile applications. New IPD HVM is scheduled to begin in 2019. To meet the demands of 5G mobile communications, TSMC has developed an advanced InFO antenna in package (InFO-AIP) technology, in which the RF chip and millimeter wave antenna are integrated into an InFO package. InFO-AIP technology provides high performance, low- power, small-size, low-cost solutions for millimeter wave system applications such as 5G mobile, video streaming and virtual reality (VR) wireless communications. This technology can also support the fast-evolving automotive applications in car radar, auto-driving and driving safety. • Advanced Interconnect TSMC has made significant progress in chip performance by interconnect time delay reduction. The novel Via processes have demonstrated a 30% reduction in Via resistance with comparable chip reliability and performance. In addition, the novel materials and optimized integration approach have been verified with lower capacitance loading and enhanced device reliability. TSMC customers could enhance their competitiveness by using these prominent advances in interconnect RC (resistance-capacitance) delay. 72 73 Advanced Technology Research Innovation in transistor architectures and materials continues to enable higher performance and reduced power consumption in advanced logic technologies. TSMC is at the forefront of transistor research. At the 2018 International Electron Device Meeting (IEDM). TSMC published the first high performance CMOS Ge gate stack, a record low n-Ge contact resistance, and Ge-channel vertically stacked lateral gate-all-around nanowire transistors. TSMC continues to look for hardware accelerators for AI and HP computing. Also presented at 2018 IEDM: Phase change memory was integrated in 40nm CMOS technology and demonstrated as a key technology candidate for AI applications. TSMC research is well positioned to pave the way for continued density scaling, performance enhancement and power reduction to deliver advanced logic technologies for mobile and high performance computation applications. Specialty Technologies TSMC offers a broad mix of technologies to address a wide range of applications: • Mixed Signal/Radio Frequency (MS/RF) Technology In 2018, in order to facilitate transceiver circuit design for the increasing demand of 5G cutting-edge wireless technologies, TSMC successfully delivered various options in 16nm, 22nm and 28nm devices with a Si-based millimeter wave (mmWave) model to fulfill customers’ requirement in cross-functional integrated applications. To achieve better performance in insertion loss and isolation in special process for cellular/Wi-Fi RF switch applications, TSMC reduced the key parameter Ron-Coff to ~78 fs (femtosecond) by providing 40nm process as a lower-cost alternative. • Power IC/Bipolar-CMOS-DMOS (BCD) Technology TSMC developed unique 90nm BCD technology, offering leading-edge 5-16V power devices and dense logic integration at a competitive cost, as a next generation mobile Power Management IC (PMIC) solution. TSMC continually enriches this platform to cover more PMIC applications with 40nm ultra-low- power compatible 20-24V HV devices with integrated RRAM for the first time to enable low power, high integration in a small footprint for mobile applications. • Panel Drivers Technology In 2018, TSMC deployed 40nm UHD SRAM, 6-8V and 25- 32V high-voltage technologies for small panel Super Retina display driver ICs in Display Driver IC (DDIC) and Touch with Display Driver Integration (TDDI). In addition, the Company also penetrated the markets for OLED (organic light emitting diode), AR/VR and medium panel driver ICs. Dozens of customers and products entered mass production and the yield has been excellent. For next generation products, TSMC has introduced dual platforms in advanced high-voltage technologies, wafer stacking, and panel verification, and plans to begin risk production in the first half of 2019. • Micro-electromechanical Systems (MEMS) Technology In 2018, TSMC’s modular MEMS technology was qualified for mass production of accelerometers and a pilot run of high-resolution pressure sensors. Future plans include the development of next-generation high-sensitivity thin microphone, MEMS Si-pillar TSV (through silicon via) technology and BioMEMS applications. • GaN Technology The first generation of 650V/100V enhancement high electron mobility transistor (E-HEMT) went into risk production in 2018. The second generation of 650V/110V E-HEMT and RF 100V D-HEMT GaN devices were developed and passed engineering qualification, also in 2018. • Complementary Metal-Oxide-Semiconductor (CMOS) Image Sensor Technology In 2018, TSMC had several achievements in CMOS image sensor technology including: (1) mass-production of new- generation sensors of sub-micron pixel for mobile application; (2) successful development of Ge-on-Si sensor for 3D range sensing applications with performance superior to Si sensor; (3) successful application of wafer stack technology to prototype Single Photon Avalanche Diode (SPAD) sensor array technology for 3D time-of-flight applications. • Embedded Flash/Emerging Memory Technology TSMC reached several major milestones in embedded non- volatile memory (NVM) technologies in 2018. At the 40nm node, NOR-based cell technology with Split-Gate cell was successfully mass-produced to support consumer electronics applications such as IoT, smartcards and MCU and was also qualified for automotive electronics applications. At 28nm node, embedded flash development for HP mobile computing and HP low-leakage platforms have demonstrated stable yield and reliability, and technical qualification is expected in 2019 for automobile electronics and micro controller units (MCU). Customers also announced industry’s first on-chip flash memory MCU using TSMC’s 28nm embedded flash technology for next generation autonomous cars. In 2018 TSMC offered 40nm RRAM technology to be embedded in NVM technologies as a low-cost solution for the price-sensitive IoT market. Development in 28nm and 22nm embedded resistive memory technology is on track and expected to enter production in 2020. TSMC is also developing 28nm and 22nm embedded MRAM technology as the solution for embedded-flash technology replacement beyond the 40nm Split-Gate cell node. 2019 production of embedded MRAM is expected to serve many emerging applications. 5.2.3 Technology Platform TSMC provides customers with advanced technology platforms that include the comprehensive design infrastructure required to optimize design productivity and cycle time. These include: design flows for electronic design automation (EDA); silicon- proven libraries and IP building blocks; and simulation and verification design kits, i.e., process design kits (PDKs) and technology files. For TSMC’s latest advanced technologies of 5nm, 7nm, 7nm+, 12nm, 22nm and 3D IC design enablement platform, EDA tools, features and IP solutions are readily available for customers to adopt to meet their product requirements at various design stages. TSMC also extends its IP quality program (TSMC 9000) to allow IP audits to be performed either at TSMC or at TSMC- certified laboratories. To help customers plan new product tape-outs incorporating library/IP from TSMC’s Open Innovation Platform® (OIP) ecosystem, the OIP ecosystem features a portal to connect customers to an ecosystem of 39 IP solution providers. Overall, TSMC and its IP partners have accumulated a portfolio of more than 20,000 IP titles, from 0.35µm to 5nm with major IP types to meet customer design needs. TSMC and its EDA partners have created numerous deliverables from 0.13µm to 5nm that have successfully supported customer tape-outs. provides a broad range of PDKs for digital logic, mixed-signal, radio frequency (RF), high-voltage driver, CMOS image sensor (CIS) and embedded flash technologies across a range of technology nodes from 0.5µm to 5nm. In addition, the Company provides technology files for design rule checking (DRC), layout verification of schematic (LVS), resistance-capacitance (RC) extraction, automatic place and route, and a layout editor to ensure process technology information is accurately represented in electronic design automation (EDA) tools. By 2018, TSMC had provided more than 9,000 technology files and more than 300 PDKs via TSMC-OnlineTM. There are more than 100,000 customer downloads of these files every year. Library and IP Silicon intellectual property (IP) is the basic building block of integrated circuit designs. Various IP types are available to support different customer design applications including foundation IP, analog IP, embedded memory IP, interface IP and soft IP. TSMC and its alliance partners offer customers a rich portfolio of reusable IPs, which are essential building blocks for many circuit designs. In 2018, the Company expanded its library and silicon IP portfolio to contain more than 20,000 items, a 25% increase over 2017. Design Methodology and Flow Reference flows are built on top of certified EDA (electronic design automation) tools to provide additional design flow methodology innovations that can help boost productivity. In 2018, TSMC addressed critical design challenges associated with the new 5nm and 3D IC technology for digital and SoC applications by announcing the readiness of reference flows through OIP collaboration that feature FinFET-specific design solutions and methodologies for performance, power and area optimization. 5.2.4 Design Enablement 5.2.5 Intellectual Property TSMC’s technology platforms provide a solid foundation to facilitate the design process. Customers can design directly using the Company’s internally developed IP and tools or use tools available from TSMC’s OIP partners. Tech Files and PDKs EDA tool certification is an essential element for IP and customer designs to ensure that features meet TSMC process technology requirements, with certification results that can be found on TSMC-OnlineTM. There are corresponding technology files and process development kits (PDKs) available for customers to download and design together with certified EDA tools. TSMC A strong portfolio of intellectual property rights strengthens TSMC’s technology leadership and protects our advanced and leading-edge technologies. As of end of 2018, TSMC has accumulated near 50,000 patent applications, and over 34,000 patent grants worldwide. In 2018, TSMC has obtained near 2,500 U.S. patents to rank #6 among U.S. patent assignees, making the ranking of top 10 U.S. patent assignees for the third consecutive year. Additionally, TSMC actively develops worldwide patent strategy, ranking #1 among patent applicants in Taiwan, and obtaining over 1,000 patents in Taiwan and China. In terms of patent quality, the average allowance rate of TSMC’s U.S. applications is 98% and ranks #1 among top 10 U.S. patent 74 75 assignees. Going forward, TSMC will continue to implement a unified strategic plan for intellectual capital management, combining with strategic considerations and close alignment with the business objectives, to drive the timely creation, management and use of intellectual property. TSMC has established a process to generate company value from intellectual property by aligning intellectual property strategy with R&D, business operation objectives, marketing, and corporate development strategies. Intellectual property rights protect the company’s freedom to operate, enhance competitive position, and provide leverage to participate in many profit- generating activities. TSMC has worked continuously to improve the quality of intellectual property portfolio and to reduce the maintenance costs. TSMC will continue to invest in intellectual property portfolio and intellectual property management system to ensure the company’s technology leadership and receive maximum business value from intellectual property rights. 5.2.6 TSMC University Collaboration Programs In recent years TSMC has significantly expanded its collaborations with prestigious universities in Taiwan. The mission of these joint research is twofold: to incubate high-quality graduate students for semiconductor industry, and to inspire university professors to conduct frontier semiconductor science and technologies research, including but not limited to novel device, process and materials technology, semiconductor manufacturing and engineering, and specialty technologies for electronic applications. Back in 2013, TSMC established research centers at four top universities in Taiwan, namely National Chiao Tung University, National Taiwan University, National Cheng Kung University and National Tsing Hua University. In 2018, 371 high-caliber students with backgrounds in the disciplines of electronics, physics, materials, chemistry, chemical engineering and mechanical engineering have joined these four research centers. In 2015, TSMC furthered its collaboration with the International College of Semiconductor Technology (ICST), at National Chiao Tung University. With TSMC’s support to this international program, a few renowned adjunct professors and a good number of international Ph.D. students have undertaken exploratory research at ICST. In addition, TSMC also conducts strategic research projects at top overseas universities, such as Stanford, MIT, UC Berkeley and so on. The focus is on disruptive capabilities in transistors, interconnect, patterning, modeling and special technologies. TSMC University Shuttle Program The TSMC University Shuttle Program was established to provide professors at leading research universities worldwide with access to the advanced silicon process technologies needed to research and develop innovative circuit design concepts. This program links motivated professors and graduate students with enthusiastic managers at TSMC in order to promote excellence in the development of advanced silicon design technologies and to nurture new generations of engineering talent in the semiconductor field. The program provides access to TSMC silicon process technologies for digital and analog/mixed-signal circuits, RF designs and micro-electromechanical system designs. Participants include major university research groups worldwide. TSMC and the University Shuttle Program participants achieve “win-win” collaboration through the program, which allows graduate students to implement exciting designs and achieve silicon proof points for innovations in various end-applications. 5.2.7 Future R&D Plans To maintain and strengthen TSMC’s technology leadership, the Company plans to continue investing heavily in R&D. For advanced CMOS logic, the Company’s 5nm and 3nm CMOS nodes continue progressing in the pipeline. In addition, the Company’s reinforced exploratory R&D work is focused on beyond-3nm node; in areas such as 3D transistors, new memory, and low-R interconnect, on track to establish a solid foundation to feed into technology platforms. For 3D IC advanced packaging, innovations for energy-efficient sub-system integration and scaling provide further augmentation to CMOS logic applications. For specialty technologies, the Company has intensified its focus on new specialty technologies such as RF and 3D intelligent sensors targeting 5G and smart IoT applications. The Corporate Research function established in 2017 continues to focus on novel materials, process, devices, nanowires, memories, etc. for the long-term, beyond 8 to 10 years. The Company also continues to collaborate with external research bodies from academia to industry consortia alike with the goal of extending Moore’s Law and paving the road to future cost-effective technologies and manufacturing solutions for its customers. With a highly competent and dedicated R&D team and its unwavering commitment to innovation, TSMC is confident in its ability to deliver the best and most cost-effective SoC technologies to its customers and to drive future business growth and profitability for years to come. Summary of TSMC’s Major Future R&D Projects Project Name Description 5nm logic technology platform and applications 5th generation FinFET CMOS technology platform for SoC Beyond-5nm logic technology platform and applications 3D IC Next-generation lithography Long-term research 6th generation FinFET CMOS technology platform for SoC Cost-effective solution with better form factor and performance for System-in- Package (SiP) EUV lithography and related patterning technology to extend Moore’s Law Specialty SoC technology (including new NVM, MEMS, RF, analog) and transistors for 8 - 10 year out horizon Risk Production (Estimated Target Schedule) 2019 2021 2018 - 2020 2018 - 2020 2018 - 2025 The projects above account for roughly 70% of the total R&D budget for 2019, estimated to be around 9% of 2019 revenue. 5.3 Manufacturing Excellence 5.3.1 GIGAFAB® Facilities Maintaining dependable capacity is a key part of TSMC’s manufacturing strategy. The Company currently operates three 12-inch GIGAFAB® facilities – Fabs 12, 14 and 15. The combined capacity of the three facilities exceeded 8 million 12-inch wafers in 2018. Production within these three facilities supports 0.13µm, 90nm, 65nm, 40nm, 28nm, 20nm, 16nm, 10nm, and 7nm process technologies, including each technology’s sub-nodes. An additional portion of the capacity is reserved for R&D work on leading-edge manufacturing technologies, which currently supports the technology development of the 5nm, 3nm node and beyond. The three GIGAFAB® facilities are coordinated by the centralized fab manufacturing management system known as super manufacturing platform (SMP) to provide customers with greater benefits in the form of more consistent quality and reliability, improved flexibility to cope with demand fluctuations, faster yield learning and time-to-volume, and lower-cost product requalification. 5.3.2 Engineering Performance Optimization As advanced technology continues to evolve and the geometry keeps shrinking, the need for tighter process control and quality requirement has become extremely challenging for manufacturing. TSMC’s unique manufacturing infrastructure is tailored to handle a diversified product portfolio, which uses strict process control to attain tightened specs and meet higher product quality, performance, and reliability requirements. To achieve overall optimization of quality, yield, process and equipment, the process control and analysis systems have been integrated with many intelligent functions to perform self-diagnosis, self-learning and self-reaction. These, in turn, have demonstrated remarkable results in yield enhancement, quality assurance, workflow improvement, fault detection, cost reduction and shortening of the R&D cycle. TSMC has developed systems for precise fault detection and classification, intelligent advanced equipment control and intelligent advanced process control to monitor the manufacturing process in a timely manner and adjust conditions precisely. To achieve quality-first and ensure highly efficient and effective production, the Company has created precision equipment matching and yield mining to minimize process variation and potential defect and excursion. To meet the stricter quality requirements of mobile, high performance computing, automotive and the Internet of Things, TSMC has further developed Big Data, Machine Learning, and Artificial Intelligence architecture, which identify critical variables to strengthen process control, optimize quality, and improve yield management and operating efficiency simultaneously. 5.3.3 Agile and Intelligent Operations The Company’s sophisticated, agile operation system continues to drive manufacturing excellence by integrating demand and capacity modeling, lean Work in Process (WIP) line management, lot dispatching and scheduling, and equipment quality performance to provide fast ramp-up, short cycle time, stable manufacturing, on-time delivery, and total quality satisfaction. The system also provides great flexibility to quickly support customers’ urgent pull-in requests when needed. TSMC has also introduced new applications such as IoT, intelligent mobile devices and mobile robots to consolidate data collection, yield traceability, workflow efficiency, and material transportation to continuously enhance fab operation efficiency. Committed to manufacturing excellence, TSMC has integrated expert systems, advanced algorithms, artificial intelligence and machine learning technology to build up an advanced manufacturing environment. Advanced manufacturing technologies are widely applied in scheduling and dispatching, people productivity, equipment productivity, process and equipment control, quality defense, and robotic control in order to optimize quality, productivity, efficiency, and flexibility while maximizing cost effectiveness and accelerating overall innovation. 76 77 5.3.4 Raw Materials and Supply Chain Management In 2018, TSMC continued to review and resolve supply issues, quality issues and potential supply chain risks through the collaboration of teams formed by operations, quality control and business organizations. TSMC also worked with suppliers to further advance material and process innovation, improve quality and create recycling savings with benefits from win-win solutions. Raw Materials Supply Major Materials Major Suppliers Market Status Procurement Strategy Raw Wafers FST GlobalWafers SEH Siltronic SUMCO These 5 suppliers together provide over 90% of the world’s raw wafer supply. Each supplier has multiple manufacturing sites in order to meet customer demand, including plants in North America, Asia, and Europe. • TSMC’s suppliers of silicon wafers are required to pass stringent quality certification procedures. • TSMC procures wafers from multiple sources to ensure adequate supplies for volume manufacturing and to appropriately manage supply risk. • Raw wafer quality enhancement programs are in place to support TSMC’s technology advancement. • TSMC regularly reviews the quality, delivery, cost, sustainability and service performance of its wafer suppliers. The results of these reviews are incorporated into subsequent purchasing decisions. • A periodic audit of each wafer supplier’s quality assurance system ensures that TSMC can maintain the highest quality in its own products. • TSMC takes various approaches with suppliers to better manage the cost and supply. • Most suppliers have relocated some of their operations closer to TSMC’s major manufacturing facilities, thereby significantly improving procurement logistics. • All supplied products are regularly reviewed to ensure that TSMC’s specifications are met and product quality is satisfactory. • TSMC encourages and engages with chemical suppliers to implement innovative green solutions for waste reduction These 12 companies are the major worldwide suppliers of chemicals. Chemicals Lithographic Materials Gases Slurry, Pad, Disk Air Liquide BASF Entegris Fujifilm Electronic Materials Kanto PPC Kuang Ming Merck RASA Shiny Tokuyama Versum Wah Lee 3M Asahi Kasei Dow Chemical Fujifilm Electronic Materials JSR Merck Nissan Shin-Etsu Chemical Sumitomo Chemical T.O.K. Air Liquide Air Products Central Glass Entegris Linde LienHwa Praxair SK Materials Taiwan Material Technology Taiyo Nippon Sanso Versum 3M AGC Cabot Microelectronics Dow Chemical Fujibo Fujifilm Electronic Materials Fujimi Kinik Versum These 10 companies are the major worldwide suppliers of lithographic materials. • TSMC works closely with suppliers to develop materials that meet all application and cost requirements. • TSMC and suppliers periodically conduct programs to improve their quality, delivery, sustainability and green policy, and to ensure continuous progress of TSMC’s supply chain. • Some major suppliers have relocated or plan to replicate their manufacturing sites closer to TSMC’s major manufacturing facilities, thereby significantly improving procurement logistics and reducing supply risks. These 10 companies are the major worldwide suppliers of specialty gases. • The majority of these suppliers have facilities in multiple geographic locations, which minimizes supply risk for TSMC. • TSMC conducts periodic audits to ensure that they meet TSMC’s standards. These 9 companies are the major worldwide suppliers of CMP (Chemical Mechanical Polishing) materials. • TSMC works closely with suppliers to develop materials that meet all application and cost requirements. • TSMC and suppliers periodically conduct programs to improve their quality, delivery, sustainability and green policy, and to ensure continuous progress of TSMC’s supply chain. • Most suppliers have relocated or plan to replicate some of their manufacturing sites closer to TSMC’s major manufacturing facilities, thereby significantly improving procurement logistics and reducing supply risks. Suppliers Accounting for at Least 10% of Annual Consolidated Net Procurement Unit: NT$ thousands Supplier Company A Company B Company C VIS Company D Others Total Net Procurement 2018 2017 Procurement Amount As % of 2018 Total Net Procurement Relation to TSMC Procurement Amount As % of 2017 Total Net Procurement Relation to TSMC 11,047,359 10,233,843 6,800,865 5,142,749 4,556,717 25,625,521 63,407,054 17% None 16% None 11% None 8% Investee accounted for using equity method 7% None 41% 100% - - 8,868,953 8,029,455 5,579,238 5,755,727 5,156,154 19,804,126 53,193,653 17% None 15% None 10% None 11% Investee accounted for using equity method 10% None 37% 100% - - • Reason for Increase or Decrease: Due to market or customer product demand changes, etc. 5.3.5 Quality and Reliability TSMC’s strong industry reputation stems from its commitment to provide customers with the highest-quality wafers and best service for their products. Quality and Reliability (Q&R) services aim to achieve “quality on demand” to fulfill customers’ requirements for time-to-market delivery, product reliability, and competitiveness over a broad range of product market segments. An automotive quality improvement program has been implemented to meet customer requirements for low Defect Parts Per Million (DPPM). Q&R technical services assist customers in the technology development stages and product design stages to design-in superior product reliability. In 2018, Q&R worked with R&D in advanced logic technology, specialty technology and advanced packaging technology development and qualification. Q&R has successfully qualified the leading-edge 7nm+ technology (the third FinFET generation), which includes Extreme Ultraviolet (EUV) process and characterized process window with Fab for mass production in 2019. TSMC has led the industry in 7nm technology qualification. The Company developed a complete model to simulate thermal dissipation effect during FinFET operation, to provide more accurate electromigration (EM) design guideline for customers, to develop statistical electromigration budgeting (SEB) model to calculate effective metal electromigration failure rate on whole chip and implement it into electronic design automation (EDA) tool. Through the 7nm+ development process, TSMC enhanced profound reliability learning with new process steps and new reliability methodologies, which, in turn, provided an important foundation for 5nm technology development and prepared for 5nm risk production to start in 2019. For specialty technologies, Q&R completed the second generation diffractive optical element (DOE) product qualification and ramped up DOE unit production to support a key customer’s new product launch with 3D sensing and facial recognition applications. In high-voltage technologies, 0.13µm Bipolar-CMOS-DMOS (BCD) and 0.18µm, third generation BCD process passed automotive grade qualification. For CoWoS® packaging technologies, Q&R integrated high bandwidth memory (HBM) with advanced silicon technology and completed component level, board level and customer product system level qualifications. It has been in production and over one million units have been shipped to key customers without quality or reliability issues. The technology enables the applications of HPC and AI. In addition, Integrated Fan-Out (InFO) assembly technology for mobile applications moved into the third generation of manufacturing. Over 70 million InFO devices have been shipped without any InFO related quality or reliability issues. To enhance employee problem-solving capabilities and develop related quality systems and methodologies, Q&R continued to hold several company-wide symposiums and training programs such as Total Quality Excellence (TQE), Design of Experiment (DOE), Statistical Process Control (SPC) and metrology in 2018. This included the promotion and training of deep machine learning, which was successfully applied to automatic classification of wafer defects and advanced spectral analysis to detect differences among processes and equipment so that corrective actions could be triggered. In 2019, Q&R will continue the development of employee capabilities by promoting and using new methodologies to enhance TSMC competitiveness. To improve raw material quality, in 2017 Q&R began 78 79 encouraging raw materials suppliers to participate in the National Quality Control Circle Competition, which has achieved good results. In 2018, Q&R-backed raw materials suppliers won one gold, four silver and six bronze medals. In 2019 and beyond, Q&R will continue to urge raw material suppliers to join this quality competition to help them improve quality and further enhance TSMC competitiveness. In developing leading-edge technologies, one of the most challenging tasks is to establish effective metrology methods to minimize process variations. In 2018, Q&R joined forces with R&D metrology experts to address nanometer and atomic-scale characterization needs with a “hybrid metrology” approach, where multiple techniques, both chemical analysis and physical measurement, are used to provide a full characterization of ever more complex 3D nanometer structures. This hybrid metrology approach is being used to support 5nm technology development and will be extended to assist in 3nm and specialty technology development. The health and safety of employees have always been a priority at TSMC. Since the end of 2015, Q&R has collaborated with the Environmental Safety and Health (ESH) organization to build capability to detect and analyze carcinogenic, mutagenic and reprotoxic (CMR) substances. Beginning in 2017, raw materials suppliers were required to replace PFOA (Perfluorooctanoic Acid) raw materials with non-PFOA alternatives to comply with green procurement policy. Q&R is also responsible for leading the Company toward the ultimate goal of zero-defect production through the use of continuous improvement programs. Periodic customer feedback indicates that products shipped from TSMC have consistently met or exceeded their field quality and reliability requirements. In 2018, a third-party audit verified the effectiveness of TSMC quality management systems in compliance with IATF 16949: 2016 and IECQ QC 080000: 2017 certificates requirements. In addition, since 2017 Q&R and Fabs have jointly worked on new enhancements for automotive product quality improvement, including design rule implementation and migration to Automotive Quality System 2.0. This covers Fab in-line and Wafer Acceptance Testing using Cpk (process capability index) tightening and maverick wafers/lots handling. Q&R also provides dedicated resources for field/line return analysis and timely physical failure analysis (PFA) for process improvement to meet automotive customers’ low DPPM requirement. 5.4 Customer Trust 5.4.1 Customers TSMC’s customers worldwide have a variety of successful product specialties and excellent performance records in various segments of the semiconductor industry. Customers include fabless semiconductor companies, systems companies, and integrated device manufacturers such as Advanced Micro Devices, Inc., Broadcom Limited, Hisilicon Technologies Co. Ltd., Intel Corporation, Marvell Technology Group Ltd., MediaTek Inc., NVIDIA Corporation, NXP Semiconductors N.V., Qualcomm Inc., Sony Corporation, Texas Instruments Inc., and many more. Customer Service TSMC believes that providing superior service is critical to enhancing customer satisfaction and relationship, which, in turn, is very important to retaining existing customers, strengthening customer relationships and attracting new customers. With a dedicated customer service team as the main contact for coordination and facilitation, TSMC strives to provide world- class design support, mask making, wafer manufacturing, and backend services to provide customers an optimum experience and, in return, gain customer trust and sustain Company revenues and profitability. To facilitate customer interaction and information access on a real-time basis, TSMC-OnlineTM offers a suite of web-based applications that play an active role in design, engineering and logistics collaborations. Customers have 24/7 access to critical information and customized reports. Design collaboration focuses on content availability and accessibility, with close attention paid to complete, accurate and up-to-date information at each stage of the design life cycle. Engineering collaboration includes online access to engineering lots, wafer yields, wafer acceptance test (WAT) analysis, and quality and reliability data. Logistics collaboration provides access to data on any given order status in wafer fabrication, backend process and shipping. Customer Satisfaction To measure customer satisfaction and to ensure that customer needs are fully understood, TSMC conducts an annual customer satisfaction survey (ACSS) with most active customers, either by web or interview through an independent consultancy. Complementary to the survey, quarterly business reviews (QBRs) are also conducted by the customer service team so that customers can give feedback to TSMC on a regular basis. Through surveys, feedback reviews and intensive interaction with customers, TSMC is able to stay in close touch and provide better service and collaboration. Customer feedback is routinely reviewed, analyzed and then used to develop appropriate improvement plans, all in all becoming an integral part of the customer satisfaction process with a complete closed loop. TSMC uses data derived from the survey as a base to identify future focus areas. TSMC acts on the belief that customer satisfaction leads to healthy relationships, and healthy relationships lead to higher levels of retention and expansion. Customers that Accounted for at Least 10% of Annual Consolidated Net Revenue Unit: NT$ thousands 2018 2017 Net Revenue (Note) As % of 2018 Total Net Revenue Relation to TSMC Net Revenue (Note) As % of 2017 Total Net Revenue Relation to TSMC Total Net Revenue 1,031,473,557 224,690,695 806,782,862 22% None 78% 100% 220,463,127 756,984,114 977,447,241 23% None 77% 100% Customer Customer A Others Note: Commencing in 2018, the Company began to break down the net revenue by customer based on a new method which associates most estimated sales returns and allowances with individual sales transactions, as opposed to the previous method which allocated sales returns and allowances based on the aforementioned gross revenue. The Company believes the new method provides a more relevant breakdown than the previous one. On a comparable basis, the classification of 2017 has been revised accordingly. • Reason for Increase or Decrease: No significant change. 5.4.2 Open Innovation Platform® (OIP) Initiative Innovation has always been an exciting and challenging proposition. Competition among semiconductor companies continues to grow more intense in the face of increasing industry consolidation and the commoditization of technology at more mature, conventional levels. Companies must find ways to keep innovating in order to survive and prosper. One way to accelerate innovation is through active collaboration with external partners. At TSMC this is known as “Open Innovation®.” It is an “outside in” approach to complement traditional “inside out” methods. TSMC has adopted this path to innovate via its Open Innovation Platform® (OIP) initiative, which is a key part of the TSMC Grand Alliance. TSMC announced the fifth OIP Alliance, the OIP Cloud Alliance, at the 2018 Open Innovation Platform® Ecosystem Forum. Inaugural members Amazon Web Services (AWS), Cadence, Microsoft Azure, and Synopsys worked jointly with TSMC to implement Open Innovation Platform Virtual Design Environment (OIP VDE), which enables semiconductor customers to design securely in the cloud. In TSMC’s enablement of OIP VDE, both digital RTL-to-GDSII and custom schematic-capture-to-GDSII design flows have been validated along with OIP collateral, including process technology files, PDKs, foundation IP and reference flows. To ensure low barriers to entry and high technical support levels, Cadence and Synopsys act as focal points helping customers to set up VDE and providing first-line support. The OIP initiative is a comprehensive design technology infrastructure that encompasses all critical IC implementation areas to reduce design barriers and improve first-time silicon success. OIP promotes the speedy implementation of innovation amongst the semiconductor design community and its ecosystem partners using TSMC’s IP, design implementation, design for manufacturability (DFM) capabilities, process technology and backend services. Crucial to OIP are ecosystem interfaces and collaborative components initiated and supported by TSMC that more efficiently empower innovation throughout the supply chain and, in turn, drive the creation and sharing of new revenue and profits. TSMC’s active accuracy assurance (AAA) initiative is key to OIP, providing the accuracy and quality required by the ecosystem interfaces and collaborative components. 80 81 TSMC’s Open Innovation® model brings together the creative thinking of customers and partners under the common goal of shortening each of the following: design time, time-to-volume, time-to-market and, ultimately, time-to-revenue. The model features: • the foundry segment’s earliest and most comprehensive electronic design automation (EDA) certification program, delivering timely design tool enhancement required by new process technologies • the foundry segment’s largest, most comprehensive and most robust silicon-proven IP (intellectual properties) and library portfolio, and • comprehensive design ecosystem alliance programs covering market-leading EDA, library, IPs, and design service partners. TSMC’s OIP alliance consists of 23 EDA partners, four cloud partners, 39 IP partners, 20 design center alliance (DCA) partners, and seven value chain aggregator (VCA) partners. TSMC and its partners work together proactively and engage much earlier and deeper than ever before in order to address mounting design challenges at advanced technology nodes. Through this early and intensive collaboration effort, TSMC’s OIP is able to deliver the needed design infrastructure with timely enhancement of EDA tools, early availability of critical IPs and quality design services when customers need them. Taking full advantage of the process technologies once they reach production-ready maturity is critical to customers’ success. TSMC’s OIP partner management portal facilitates communication with its ecosystem partners for efficient business productivity. Designed with a highly intuitive interface, this portal can be accessed via a direct link from TSMC-OnlineTM. In October TSMC held its 2018 Open Innovation Platform® (OIP) Ecosystem Forum in Santa Clara, California and in Nanjing. This annual event demonstrates how TSMC and its ecosystem partners jointly develop design solutions on top of TSMC’s advanced technologies through OIP collaboration. At the forum, TSMC delivered key messages of the new OIP Cloud Alliance and collaborated solution of OIP Virtual Design Environment (OIP VDE) with the goal of further enhancing customer design productivity by leveraging the flexibility and computing power of the Cloud, and presented on EDA and IP readiness of 5nm, 7nm, 7nm+ and their respective power, performance and area (PPA) benefits. TSMC also showed the progress in 22nm technology, in automotive design enablement platforms in 16FFC and 7nm, and in the availability of various 3D IC reference flows covering a wide range of applications. The readiness of design ecosystem solutions will help customers design applications to capture the market opportunities in mobile, high-performance computing, the Internet of Things and automotive. Followed with invited keynote from Microsoft, highlighting the new collaboration with TSMC in Cloud computing to facilitate customer’s adoption of Cloud resources and apply them securely in their semiconductor designs. 5.5 Human Capital Human capital is TSMC’s most treasured asset. In this regard, the Company’s main role is to provide jobs with challenging, meaningful work in a safe environment with excellent compensation and benefits. TSMC goes beyond this, however, by actively encouraging employees to nurture and enjoy a healthy family life, to develop outside interests, to expand social participation, and, in general, live a happy life. TSMC participates in the Responsible Business Alliance (RBA) as a full member and abides by local laws. The Company refrains from forcing employees to do unwilling labor service, listens to the employees, keeps communication channels open, respects the right of all workers to form and join trade unions of their own choosing as well as to refrain from such activities as they choose. 5.5.1 TSMC Human Rights Policy TSMC abides local laws and regulations in all countries and regions where we operate, and upholds the human rights of workers, including regular, contract and temporary employees, and interns. We treat all workers with dignity and respect as understood by the international human rights standards such as The International Bill of Human Rights, The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, and Ten Principles of the United Nations Global Compact. We also align our actions with the Responsible Business Alliance Code of Conduct. And TSMC’s Supplier Code of Conduct requires our suppliers to follow the same standards. 5.5.2 Workforce Structure 5.5.4 People Development At the end of 2018, TSMC had 48,752 employees worldwide, including 5,294 managers, 22,285 professionals, 4,109 assistants, and 17,064 technicians. The following table summarizes TSMC’s workforce as of the end of February, 2019: 12/31/2017 12/31/2018 02/28/2019 Job Total Gender Education Managers Professionals Assistant Engineer/Clerical Technician Male (%) Female (%) Ph.D. Master's Bachelor's Other Higher Education 5,107 21,895 4,082 17,518 48,602 60.7% 39.3% 4.6% 41.5% 26.3% 11.4% 5,294 22,285 4,109 17,064 48,752 61.3% 38.7% 4.7% 42.6% 25.9% 11.1% 5,344 22,479 4,119 16,977 48,919 61.5% 38.5% 4.7% 43.0% 25.7% 11.0% High School 16.2% 15.7% 15.6% Average Years of Age Average Years of Service 35.7 8.4 36.4 9.1 36.5 9.2 5.5.3 Recruitment The key elements of TSMC’s success and growth depend on our employees, who share common vision and values. In order to strengthen growth momentum, the Company is dedicated to recruiting top-notch professionals for all positions available. TSMC is an equal opportunity employer and operates on the principles of open and fair recruitment. The hiring principles are integrity and ability, and the Company evaluates all candidates according to their qualifications as related to the requirement of each position without regard to race, gender, age, religion, nationality or political affiliation. To enable TSMC’s continuous growth, the Company recruited more than 2,300 employees in 2018, including over 2,000 managers and professionals, as well as over 300 assistants and technicians. Employee development, an integral and critical factor for the growth of any company, should be goal oriented, disciplined and planned. TSMC is committed to expanding and fulfilling employee potential by providing meaningful work in a global workplace. TSMC is also committed to cultivating a consistent and diverse learning environment. To this end, the Company has initiated the “TSMC Employee Training and Education Procedure” to ensure the Company’s and the individuals’ development objectives can be achieved through the integration of internal and external training resources with internal rotation opportunities. To help employees reach their potential, TSMC dedicates to do the on-the-job training and systematic job rotation; more than that, TSMC provides various learning resources and channels to encourage employees to do self-learning to further uplift their performance and potential. TSMC integrates internal and external resources and designs diversified development programs based on business objectives, the nature of the individual’s job, work performance and career development path. The Company provides employees a diverse network of learning resources, including on-the-job training, classroom training, e-learning, coaching, mentoring and job rotation; it also creates an educational atmosphere through learning activities in response to organization development requirements and employee capability enhancement goals. The Company provides employees with a wide range of onsite general, professional and managerial training programs. In addition to engaging external experts as trainers, hundreds of TSMC employees are trained to be qualified instructors to deliver their valuable knowhow in internal training courses. TSMC’s training programs include: • New employee – for basic training and job orientation. In addition, the newcomers’ managers and the Company’s well- established buddy system are in place to support new hires in their assimilation process regarding both corporate culture and work requirements. • General – refers to training required by government regulations and/or Company policies, as well as training on general subjects for all employees or employees in various job functions. Topics include industry-specific safety, workplace health and safety, quality, fab emergency response and personal effectiveness management. 82 83 • Professional/functional – technical and professional training required by different functions within the Company. TSMC offers training courses on equipment engineering, process engineering, accounting, information technology, and so forth. • Management – management development programs tailored to the needs of managers at all levels based on their managerial capabilities and responsibilities, including new, experienced, and senior managers; optional courses are also available. • Direct labor – training for production-line employees to acquire the knowledge, skills and approaches they need to perform their jobs well and to pass certification for operating equipment. Includes direct labor skill training, technician “Train the Trainer” training, and manufacturing leadership training. • Customized – programs tailored to the needs of the organization and/or the employee’s development plan. In 2018, TSMC conducted 989 internal training sessions and provided nearly 530,000 hours of training and a total of more than 540,000 attendees participated. On average, each employee attended over 11 hours of training and TSMC spent over NT$82 million on the learning and development for employees. Apart from internal training resources, our employees are also subsidized when pursuing external short-term courses, for-credit classes and degrees. 5.5.5 Compensation Employment at TSMC entitles employees to a comprehensive compensation and benefits program above the industry average. TSMC provides a diversified compensation program that is competitive externally, fair internally, and adapted locally. TSMC adheres to the philosophy of sharing wealth with employees in order to attract, retain, develop, motivate and reward talented employees. With sound business results over the past 30 years, the actual total compensation received by employees has been above the industry’s average. TSMC’s compensation program includes a monthly salary, employee cash bonuses based on quarterly business results, and an employee profit sharing bonus based on annual profits. The purpose of the employee cash bonus and profit sharing bonus programs is to reward employee contributions appropriately, to encourage employees to work consistently toward ensuring the success of TSMC, and to align employees’ interests with those of TSMC’s shareholders so as to achieve wins for the Company, shareholders and employees. The Company determines the amount of the cash bonus and profit sharing bonus based on operating results and industry practice in the Republic of China. The amount and distribution of the employee bonuses are recommended by the Compensation Committee to the Board of Directors for approval. Individual rewards are based on each employee’s job responsibility, contribution and performance. The same philosophy applies to TSMC’s compensation programs in overseas subsidiaries. In addition to providing employees of TSMC’s overseas subsidiaries with a locally competitive base salary, the Company grants annual bonuses as a part of total compensation. The annual bonuses are granted in line with local regulations, market practices, and the overall operating performance of each subsidiary, to encourage employee commitment and development with the Company. 5.5.6 Employee Engagement The Company encourages employees to maintain a healthy and well-balanced life while pursuing their goals effectively. TSMC continuously facilitates employee communication and provides employee caring, benefit, rewards and recognition programs. Employee Communication TSMC values two-way communication and is committed to keeping communication channels open and transparent for management, subordinates and peers. We devoted to ensure that employees are able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment. TSMC makes continuous efforts listen to the voice of employees and to facilitate mutual and timely employee communication, based on multiple channels and platforms, which in turn fosters harmonious labor relations and creates a win-win situation for the Company and employees. A host of two-way communication channels, including: • Communication meetings for various levels of managers and employees, for example, Chairman’s/ CEO’s communication meeting, and communication meetings in individual functions/ divisions. • The Company holds quarterly labor-management meetings to provide business updates, and invite employees to discuss labor conditions, and employee welfare activities. • Unperiodical employee satisfaction surveys to selected employees, with follow-up actions based on the survey findings. • Core value surveys, held biennially, to understand the Company’s implementation of core values and employees’ commitment and engagement. • The employee portal, myTSMC, an internal website featuring the Founder’s, Chairman’s, and CEO’s talks, corporate messages, executive interviews, and other activities of interest to employees. • eSilicon Garden, a website hosting TSMC’s internal electronic publications providing real-time updates on major activities of the Company, as well as inspirational content featuring outstanding teams and individuals. • Two reporting channels for complaints regarding management, financial, auditing, ethics and business conduct issues: – The whistleblower reporting system administered by the audit committee – The ombudsman system administered by senior manager appointed by the CEO • The employee opinion box, which provides an opportunity for employees to submit suggestions or opinions regarding their work and the overall work environment. • The Fab Caring Circle in each fab addresses the issues related to employees’ work and personal life; the system is dedicated mainly to the Company’s direct labor workers. • Sexual harassment investigation committee: This channel is dedicated to ensuring a work environment free from the threat of sexual harassment; the committee consists of three directors, one from human resources, one from legal affairs, and the third from other organizations. TSMC Internal Communication Structure Face-to-Face Meeting • Chairman’s / CEO’s Communication Meeting • Labor-Management Meeting • Communication Meetings in Individual • Functional Activity Functions / Divisions Managers of All Levels Employees Employee Portal Employee Survey HR Area Service Team Communication Meeting eSilicon Garden Announcement Company-Wide Activity Employee Voice Channels • Ombudsman System • Employee Opinion Box • Internal Audit Committee • Fab Caring Circle • Sexual Harassment Investigation Committee Board of Directors and Management Team Human Resources System / Committee Chair 84 85 5.5.8 Retirement Policy TSMC’s retirement policy is set according to the labor standard laws and labor pension practices of various respective regions. With the Company’s sound financial system, TSMC ensures employees solid pension contributions and payments, which encourages employees to set long-term career plans and further deepens their commitment to TSMC. 5.6 Material Contracts Research and Development Funding Agreement (Expired) Term of Agreement: 10/31/2012 - 12/31/2017 Contracting Party: ASML Holding N.V. (ASML) Summary: TSMC shall provide EUR276 million to ASML’s research and development programs from 2013 to 2017. Note: TSMC is not currently party to any other material contract, other than contracts entered into in the ordinary course of our business. The Company’s “Significant Contingent Liabilities and Unrecognized Commitments” are disclosed in Annual Report section (II), Financial Statements, page 82. TSMC has many internal communication channels, a major reason why the relationship between management and employees has been quite harmonious. The Company respects the right of all workers to form and join trade unions of their own choosing as well as the right to refrain from such activities. No employees have pursued this avenue or issued a request to form a union so far. In 2018 and in 2019 as of the date of this annual report, there have been no losses resulting from labor disputes. Employee Benefit Programs • Convenient onsite services and amenities: cafeterias, laundry services, convenience stores, bakery, juice bar, coffee shop, travel, banking, and commuting assistance are accessible for employees in the fabs. • Comprehensive health management services, including programs for weight control, in-fab clinic and dentist services, smoking cessation, massage service, cancer screening, and blood donation, as well as mental and health seminars to raise personal health awareness. Other health management programs include post health-exam follow-up activities, prevention of cerebrovascular disease, ergonomic hazards management, and maternal care and protection. Employee assistance programs include five free annual counseling hours for mental health and financial/legal issues, with extensions available depending on the individual’s needs. • Diverse employee welfare programs: including 80 hobby clubs, 70 presentations covering various topics, 14 art events, sports day, and family day. In addition, holiday bonuses, marriage bonuses, condolence allowances and emergency subsidies are also available to address employees’ needs. • Premium sports centers: a variety of workout facilities available to all employees and their families, as well as exercise sessions conducted by professional instructors to improve employee wellness. • Flexible preschool service: childcare service, operated to meet employees’ work schedules, is available in four fabs in Hsinchu, Taichung, and Tainan. Employee Recognition TSMC sponsors various internal award programs to recognize outstanding achievements by employees, both individual and at a team level. With these award programs, TSMC aims to encourage continued employee development, which, in turn, adds to the Company’s competitive advantage. The award programs include: • TSMC Medal of Honor: recognizes those who contribute significantly to the Company’s business performance. • TSMC Academy: recognizes outstanding scientists and engineers whose individual technical capabilities make significant contributions to the Company. • TSMC Excellent Labor Award: recognizes technicians and group leaders whose outstanding performances make significant contributions to the Company. • Total Quality Excellence for each fab: recognizes employees’ continuous efforts in creating value for the Company. • Service Award: TSMC’s recognition and appreciation of senior employees and their long-term commitment and dedication to the Company. • Excellent Instructor Award: praises the outstanding performance and contribution of the Company’s internal instructors in training courses for employees. • Function-wide awards dedicated to innovation, such as the Idea Forum and TQE awards, which recognize employees’ initiative and continuous implementation of innovative practices. Apart from corporate-wide awards, TSMC encourages employees to participate in external talent activities and competitions. In 2018, distinguished TSMC employees continued to be recognized through a host of national awards, including the National Model Labor Award, the Outstanding Young Engineer Award, and the National Manager Excellence Award. 5.5.7 Retention Overall employee satisfaction with the Company’s efforts is reflected in the 2018 TSMC core values survey which is taken biennially. According to this survey, 98% of participants agreed that they are willing to commit fully in their work to make TSMC an even more successful company; while 96% concurred with the statement that they are willing to contribute their talents to TSMC and grow together with the Company for the next five years. In 2018, the Company recorded a manageable turnover rate of 4.5%. Although a bit lower than a “healthy” outflow often defined as 5% to 10%, the Company is still in continuous growth mode resulting in 2,300 new staff hired in 2018, accounting for 4.8% of all employees and helping the organization stay energized. 86 87 
Financial Highlights and Analysis 6.1 Financial Highlights 6.1.1 Condensed Balance Sheet 6 Condensed Balance Sheet from 2014 to 2018 (Consolidated) (Note 1) Unit: NT$ thousands Item Current Assets Year 2014 (Adjusted) 2015 2016 2017 2018 626,565,639 746,743,991 817,729,126 857,203,110 951,679,721 Long-term Investments (Note 2) 30,056,279 34,993,583 46,153,916 41,569,074 29,304,796 Property, Plant and Equipment 818,198,801 853,470,392 997,777,687 1,062,542,322 1,072,050,279 Intangible Assets Other Assets (Note 3) Total Assets Current Liabilities Before Distribution After Distribution Noncurrent Liabilities Total Liabilities Before Distribution After Distribution Equity Attributable to Shareholders of the Parent Capital Stock Capital Surplus Retained Earnings Before Distribution After Distribution Others Equity Attributable to Shareholders of the Parent Before Distribution After Distribution Noncontrolling Interests Total Equity Before Distribution After Distribution 13,531,510 6,696,857 14,065,880 8,244,452 14,614,846 10,179,727 14,175,140 16,371,997 17,002,137 20,091,105 1,495,049,086 1,657,518,298 1,886,455,302 1,991,861,643 2,090,128,038 201,013,629 317,697,110 247,707,125 448,720,754 565,404,235 212,228,594 367,810,877 222,655,225 434,883,819 590,466,102 318,239,273 499,751,936 178,164,903 496,404,176 677,916,839 358,706,680 566,149,724 110,395,320 469,102,000 676,545,044 340,542,586 (Note 4) 72,089,056 412,631,642 (Note 4) 259,296,624 259,303,805 259,303,805 259,303,805 259,303,805 55,989,922 56,300,215 56,272,304 56,309,536 56,315,932 705,165,274 588,481,793 25,749,291 894,293,586 1,072,008,169 1,233,362,010 1,376,647,841 738,711,303 890,495,506 1,025,918,966 (Note 4) 11,774,113 1,663,983 (26,917,818) (15,449,913) 1,046,201,111 1,221,671,719 1,389,248,261 1,522,057,533 1,676,817,665 929,517,630 1,066,089,436 1,207,735,598 1,314,614,489 127,221 962,760 802,865 702,110 (Note 4) 678,731 1,046,328,332 1,222,634,479 1,390,051,126 1,522,759,643 1,677,496,396 929,644,851 1,067,052,196 1,208,538,463 1,315,316,599 (Note 4) Note 1: The financial statements for 2014-2018 were prepared in accordance with 2013 Taiwan-IFRSs version. The financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments included a decrease of NT$84,759 thousand in total assets, a decrease of NT$737,344 thousand in total liabilities before distribution and an increase of NT$652,585 thousand in total equity before distribution. Note 2: Long-term investments as of December 31, 2014, 2015, 2016 and 2017 include noncurrent available-for-sale financial assets, held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method. Starting from 2018, upon initial application of IFRS 9 "Financial Instruments", the category includes noncurrent financial assets at fair value through other comprehensive income, and noncurrent financial assets at amortized cost, and investments accounted for using equity method. Note 3: Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets. Note 4: Pending shareholders' approval. 89 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 979,401,337 1,016,355,970 1,025,286,941 Income from Operations 295,870,309 320,047,775 377,957,778 385,559,223 383,623,524 Condensed Balance Sheet from 2014 to 2018 (Unconsolidated) (Note 1) Unit: NT$ thousands Year Item Current Assets Long-term Investments (Note 2) Property, Plant and Equipment Intangible Assets Other Assets (Note 3) Total Assets Current Liabilities Before Distribution After Distribution Noncurrent Liabilities Total Liabilities Before Distribution After Distribution Equity Capital Stock Capital Surplus Retained Earnings Before Distribution After Distribution Others Total Equity Before Distribution After Distribution 2015 2016 2017 2018 443,781,164 397,290,976 436,769,337 464,401,415 469,966,106 550,524,494 2014 (Adjusted) 370,949,497 242,395,596 796,684,361 8,996,810 3,935,389 426,913,080 326,330,737 831,784,912 9,391,418 5,265,368 10,047,991 6,816,676 9,870,127 11,992,542 12,429,930 17,253,537 1,422,961,653 1,599,685,515 1,837,338,144 1,939,389,391 2,075,461,008 178,261,092 294,944,573 198,499,450 376,760,542 493,444,023 194,299,278 349,881,561 183,714,518 378,013,796 533,596,079 308,177,214 489,689,877 139,912,669 448,089,883 629,602,546 308,383,240 515,826,284 108,948,618 417,331,858 624,774,902 328,060,518 (Note 4) 70,582,825 398,643,343 (Note 4) 55,989,922 56,300,215 56,272,304 56,309,536 56,315,932 705,165,274 588,481,793 25,749,291 894,293,586 1,072,008,169 1,233,362,010 1,376,647,841 738,711,303 890,495,506 1,025,918,966 (Note 4) 11,774,113 1,663,983 (26,917,818) (15,449,913) 1,046,201,111 1,221,671,719 1,389,248,261 1,522,057,533 1,676,817,665 929,517,630 1,066,089,436 1,207,735,598 1,314,614,489 (Note 4) Note 1: The financial statements for 2014-2018 were prepared in accordance with 2013 Taiwan-IFRSs version. The financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments included a decrease of NT$82,771 thousand in total assets, a decrease of NT$735,381 thousand in total liabilities before distribution and an increase of NT$652,610 thousand in total equity before distribution. Note 2: Long-term investments as of December 31, 2014, 2015, 2016 and 2017 include held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method. Starting from 2018, upon initial application of IFRS 9 "Financial Instruments", the category includes noncurrent financial assets at fair value through other comprehensive income, and noncurrent financial assets at amortized cost, and investments accounted for using equity method. Note 3: Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets. Note 4: Pending shareholders' approval. 259,296,624 259,303,805 259,303,805 259,303,805 259,303,805 Basic/Diluted Earnings Per Share (Note 2) 6.1.2 Condensed Statement of Comprehensive Income Condensed Statement of Comprehensive Income from 2014 to 2018 (Consolidated) (Note 1) Unit: NT$ thousands (Except EPS: NT$) Item Net Revenue Gross Profit Year 2014 (Adjusted) 2015 2016 2017 2018 762,806,465 843,497,368 947,938,344 977,447,241 1,031,473,557 377,722,016 410,394,893 474,832,098 494,826,402 497,874,253 Non-operating Income and Expenses 6,208,048 30,381,136 8,001,602 10,573,807 13,886,739 Income before Income Tax Net Income 302,078,357 350,428,911 385,959,380 396,133,030 397,510,263 263,763,958 306,556,167 334,338,236 343,146,848 351,184,406 Other Comprehensive Income for the Year, Net of Income Tax 11,805,021 (14,714,182) (11,067,189) (28,821,631) 9,836,976 Total Comprehensive Income for the Year 275,568,979 291,841,985 323,271,047 314,325,217 361,021,382 Net Income (Loss) Attributable to: Shareholders of the Parent Noncontrolling Interests Total Comprehensive Income (Loss) Attributable to: Shareholders of the Parent Noncontrolling Interests 263,881,771 306,573,837 334,247,180 343,111,476 351,130,884 (117,813) (17,670) 91,056 35,372 53,522 275,670,991 291,867,757 323,186,736 314,294,993 360,965,015 (102,012) 10.18 (25,772) 11.82 84,311 12.89 30,224 13.23 56,367 13.54 Note 1: The financial statements for 2014-2018 were prepared in accordance with 2013 Taiwan-IFRSs version. The financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments included a decrease of NT$12,359 thousand in gross profit, a decrease of NT$19,984 thousand in income from operations, a decrease of NT$16,911 thousand in net income and a decrease of NT$46,054 thousand in total comprehensive income for the year. Note 2: Based on weighted average shares outstanding in each year. Condensed Statement of Comprehensive Income from 2014 to 2018 (Unconsolidated) (Note 1) Unit: NT$ thousands (Except EPS: NT$) Item Net Revenue Gross Profit Year 2014 (Adjusted) 2015 2016 2017 2018 757,152,389 837,046,888 936,387,291 969,136,109 1,023,925,713 366,899,120 397,708,840 461,808,296 478,937,691 492,955,501 Income from Operations 290,640,302 313,408,698 369,730,533 374,690,117 384,027,838 Non-operating Income and Expenses 10,363,515 36,579,970 15,458,427 18,626,059 12,170,315 Income before Income Tax Net Income 301,003,817 349,988,668 385,188,960 393,316,176 396,198,153 263,881,771 306,573,837 334,247,180 343,111,476 351,130,884 Other Comprehensive Income for the Year, Net of Income Tax 11,789,220 (14,706,080) (11,060,444) (28,816,483) 9,834,131 Total Comprehensive Income for the Year 275,670,991 291,867,757 323,186,736 314,294,993 360,965,015 Basic/Diluted Earnings Per Share (Note 2) 10.18 11.82 12.89 13.23 13.54 Note 1: The financial statements for 2014-2018 were prepared in accordance with 2013 Taiwan-IFRSs version. The financial statements of 2014 were adjusted to retrospectively apply newly effected GAAP. Adjustments included a decrease of NT$12,583 thousand in gross profit, a decrease of NT$19,356 thousand in income from operations, a decrease of NT$17,023 thousand in net income and a decrease of NT$46,150 thousand in total comprehensive income for the year. Note 2: Based on weighted average shares outstanding in each year. 90 91 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 6.1.3 Financial Analysis Financial Analysis from 2014 to 2018 (Consolidated) (Note 1) Financial Analysis from 2014 to 2018 (Unconsolidated) (Note) Capital Structure Analysis Debts Ratio (%) Long-term Fund to Property, Plant and Equipment (%) Liquidity Analysis Current Ratio (%) Operating Performance Analysis Quick Ratio (%) Times Interest Earned (Times) Average Collection Turnover (Times) Days Sales Outstanding Average Inventory Turnover (Times) Average Inventory Turnover Days Average Payment Turnover (Times) Property, Plant and Equipment Turnover (Times) Total Assets Turnover (Times) Profitability Analysis Return on Total Assets (%) Return on Equity Attributable to Shareholders of the Parent (%) Operating Income to Paid-in Capital Ratio (%) Pre-tax Income to Paid-in Capital Ratio (%) Net Margin (%) Basic Earnings Per Share (NT$) Diluted Earnings Per Share (NT$) Cash Flow Cash Flow Ratio (%) Cash Flow Adequacy Ratio (%) Cash Flow Reinvestment Ratio (%) Leverage Operating Leverage Industry Specific Key Performance Indicator Financial Leverage Billing Utilization Rate (%) (Note 2) Advanced Technologies (28-nanometer and below) Percentage of Wafer Sales (%) Sales Growth (%) Net Income Growth (%) 2014 (Adjusted) 30.01 158.16 311.70 278.03 94.34 8.12 44.95 7.42 49.19 19.39 0.95 0.55 19.33 27.86 114.10 116.50 34.58 10.18 10.18 209.70 92.15 13.04 2.15 1.01 97 42 27.77 40.25 2015 26.24 169.34 351.86 319.58 110.84 8.37 43.61 6.49 56.24 20.10 1.01 0.54 19.62 27.04 123.43 135.14 36.34 11.82 11.82 249.67 103.82 13.76 2.26 1.01 93 48 10.58 16.18 2016 26.31 157.17 256.95 241.34 117.74 8.78 41.57 8.18 44.62 20.11 1.02 0.53 19.03 25.60 145.76 148.84 35.27 12.89 12.89 169.63 108.57 11.51 2.15 1.01 92 54 12.38 9.03 2017 23.55 153.70 238.97 217.94 119.95 7.74 47.16 7.88 46.32 16.82 0.95 0.50 17.84 23.57 148.69 152.77 35.11 13.23 13.23 163.17 112.41 11.08 2.16 1.01 91 58 3.11 2.65 2018 19.74 163.20 279.46 248.76 131.28 8.19 44.57 6.02 60.63 16.56 0.97 0.51 17.34 21.95 147.94 153.30 34.05 13.54 13.54 168.54 113.11 9.06 2.28 1.01 87 63 5.53 2.34 Analysis of deviation of 2018 vs. 2017 over 20%: Average inventory turnover (Times) decreased by 24% and average inventory turnover days increased by 31% mainly due to an increase in raw wafers, and a higher level of work-in-process inventories driven by 7nm ramping. Note 1: The financial statements for 2014-2018 were prepared in accordance with 2013 Taiwan-IFRSs version. Note 2: Capacity includes wafers committed by Vanguard and SSMC. * Glossary 1. Capital Structure Analysis 4. Profitability Analysis (1) Debt Ratio = Total Liabilities / Total Assets (2) Long-term Fund to Property, Plant and Equipment Ratio = (Shareholders’ Equity + Noncurrent (1) Return on Total Assets = (Net Income + Interest Expenses * (1 - Effective Tax Rate)) / Average Total Assets (2) Return on Equity Attributable to Shareholders of the Parent = Net Income Attributable to Shareholders of the Parent / Average Equity Attributable to Shareholders of the Parent (3) Operating Income to Paid-in Capital Ratio = Operating Income / Paid-in Capital (4) Pre-tax Income to Paid-in Capital Ratio = Income before Tax / Paid-in Capital (5) Net Margin = Net Income / Net Sales Liabilities) / Net Property, Plant and Equipment 2. Liquidity Analysis (1) Current Ratio = Current Assets / Current Liabilities (2) Quick Ratio = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities (3) Times Interest Earned = Earnings before Interest and Taxes / Interest Expenses 3. Operating Performance Analysis (1) Average Collection Turnover = Net Sales / Average Trade Receivables (2) Days Sales Outstanding = 365 / Average Collection Turnover (3) Average Inventory Turnover = Cost of Sales / Average Inventory (4) Average Inventory Turnover Days = 365 / Average Inventory Turnover (5) Average Payment Turnover = Cost of Sales / Average Trade Payables (6) Property, Plant and Equipment Turnover = Net Sales / Average Net Property, Plant and Equipment Capital Structure Analysis Debt Ratio (%) Long-term Fund to Property, Plant and Equipment Ratio (%) Liquidity Analysis Current Ratio (%) Operating Performance Analysis Quick Ratio (%) Times Interest Earned (Times) Average Collection Turnover (Times) Days Sales Outstanding Average Inventory Turnover (Times) Average Inventory Turnover Days Average Payment Turnover (Times) Property, Plant and Equipment Turnover (Times) Total Assets Turnover (Times) Profitability Analysis Return on Total Assets (%) Return on Equity (%) Operating Income to Paid-in Capital Ratio (%) Pre-tax Income to Paid-in Capital Ratio (%) Net Margin (%) Basic Earnings Per Share (NT$) Diluted Earnings Per Share (NT$) Cash Flow Cash Flow Ratio (%) Cash Flow Adequacy Ratio (%) Cash Flow Reinvestment Ratio (%) Leverage Operating Leverage Financial Leverage 2014 (Adjusted) 26.48 156.24 208.09 171.82 120.82 8.29 44.02 7.90 46.18 18.64 0.97 0.58 20.22 27.86 112.09 116.08 34.85 10.18 10.18 230.29 90.72 13.30 2.19 1.01 2015 23.63 168.96 219.72 186.00 144.41 8.58 42.54 6.87 53.11 19.73 1.03 0.55 20.42 27.04 120.87 134.97 36.63 11.82 11.82 264.94 102.35 13.85 2.31 1.01 2016 24.39 156.13 144.00 128.65 146.73 8.89 41.07 8.56 42.63 19.04 1.03 0.54 19.58 25.60 142.59 148.55 35.70 12.89 12.89 172.81 107.06 11.74 2.19 1.01 2017 21.52 160.48 141.63 118.68 144.04 7.86 46.44 8.39 43.49 16.39 0.97 0.51 18.29 23.57 144.50 151.68 35.40 13.23 13.23 184.45 99.42 10.98 2.22 1.01 2018 19.21 170.43 143.26 113.07 137.46 8.45 43.21 6.31 57.89 16.22 1.00 0.51 17.62 21.95 148.10 152.79 34.29 13.54 13.54 173.17 113.52 9.23 2.28 1.01 Analysis of deviation of 2018 vs. 2017 over 20%: Average inventory turnover (Times) decreased by 25% and average inventory turnover days increased by 33% mainly due to an increase in raw wafers, and a higher level of work-in-process inventories driven by 7nm ramping. Note: The financial statements for 2014-2018 were prepared in accordance with 2013 Taiwan-IFRSs version. * Glossary 1. Capital Structure Analysis (1) Debt Ratio = Total Liabilities / Total Assets (2) Long-term Fund to Property, Plant and Equipment Ratio = (Shareholders’ Equity + Noncurrent Liabilities) / Net Property, Plant and Equipment 2. Liquidity Analysis (1) Current Ratio = Current Assets / Current Liabilities (2) Quick Ratio = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities (3) Times Interest Earned = Earnings before Interest and Taxes / Interest Expenses 3. Operating Performance Analysis (1) Average Collection Turnover = Net Sales / Average Trade Receivables (2) Days Sales Outstanding = 365 / Average Collection Turnover (3) Average Inventory Turnover = Cost of Sales / Average Inventory (4) Average Inventory Turnover Days = 365 / Average Inventory Turnover (5) Average Payment Turnover = Cost of Sales / Average Trade Payables 4. Profitability Analysis (1) Return on Total Assets = (Net Income + Interest Expenses * (1 - Effective Tax Rate)) / Average Total Assets (2) Return on Equity = Net Income / Average Shareholders’ Equity (3) Operating Income to Paid-in Capital Ratio = Operating Income / Paid-in Capital (4) Pre-tax Income to Paid-in Capital Ratio = Income before Tax / Paid-in Capital (5) Net Margin = Net Income / Net Sales (6) Earnings Per Share = (Net Income - Preferred Stock Dividend) / Weighted Average Number of Shares Outstanding 5. Cash Flow (1) Cash Flow Ratio = Net Cash Provided by Operating Activities / Current Liabilities (2) Cash Flow Adequacy Ratio = Five-year Sum of Cash from Operations / Five-year Sum of Capital Expenditures, Inventory Additions, and Cash Dividend (3) Cash Flow Reinvestment Ratio = (Cash Provided by Operating Activities - Cash Dividends) / (Gross Property, Plant and Equipment + Long-term Investments + Other Noncurrent Assets + Working Capital) (6) Earnings Per Share = (Net Income Attributable to Shareholders of the Parent - Preferred Stock Dividend) / (6) Property, Plant and Equipment Turnover = Net Sales / Average Net Property, Plant and Equipment 6. Leverage Weighted Average Number of Shares Outstanding 5. Cash Flow (1) Cash Flow Ratio = Net Cash Provided by Operating Activities / Current Liabilities (2) Cash Flow Adequacy Ratio = Five-year Sum of Cash from Operations / Five-year Sum of Capital Expenditures, Inventory Additions, and Cash Dividend (3) Cash Flow Reinvestment Ratio = (Cash Provided by Operating Activities - Cash Dividends) / (Gross Property, Plant and Equipment + Long-term Investments + Other Noncurrent Assets + Working Capital) (7) Total Assets Turnover = Net Sales / Average Total Assets (1) Operating Leverage = (Net Sales - Variable Cost) / Income from Operations (2) Financial Leverage = Income from Operations / (Income from Operations - Interest Expenses) (7) Total Assets Turnover = Net Sales / Average Total Assets 6. Leverage (1) Operating Leverage = (Net Sales - Variable Cost) / Income from Operations (2) Financial Leverage = Income from Operations / (Income from Operations - Interest Expenses) 92 93 6.1.4 Auditors’ Opinions from 2014 to 2018 6.2 Financial Status and Operating Results Year 2014 2015 2016 2017 2018 CPA Yih-Hsin Kao, Hung-Wen Huang Yih-Hsin Kao, Hung-Wen Huang Yih-Hsin Kao, Yu-Feng Huang Yih-Hsin Kao, Yu-Feng Huang Audit Opinion An Unqualified Opinion An Unqualified Opinion An Unmodified Opinion (Note) An Unmodified Opinion (Note) Mei Yen Chiang, Yu-Feng Huang An Unmodified Opinion (Note) Note: Starting in 2016, the new auditing standard of the Republic of China requires “An Unqualified Opinion” be replaced by “An Unmodified Opinion”. Deloitte & Touche 20F, No. 100, Songren Rd., Xinyi Dist., Taipei, Taiwan, R.O.C. Tel: 886-2-2725-9988 6.1.5 Audit Committee’s Review Report The Board of Directors has prepared the Company’s 2018 Business Report, Financial Statements, and proposal for allocation of earnings. The CPA firm of Deloitte & Touche was retained to audit TSMC’s Financial Statements and has issued an audit report relating to the Financial Statements. The Business Report, Financial Statements, and earnings allocation proposal have been reviewed and determined to be correct and accurate by the Audit Committee members of Taiwan Semiconductor Manufacturing Company Limited. According to relevant requirements of the Securities and Exchange Act and the Company Law, we hereby submit this report. Taiwan Semiconductor Manufacturing Company Limited Chairman of the Audit Committee: Sir Peter L. Bonfield February 19, 2019 6.1.6 Financial Difficulties The Company should disclose the financial impact to the Company if the Company and its affiliated companies have incurred any financial or cash flow difficulties in 2018 and as of the date of this Annual Report: None 6.1.7 Consolidated Financial Statements and Independent Auditors’ Report along with Parent Company Only Financial Statements and Independent Auditors’ Report Please refer to Annual Report section (II), Financial Statements. 6.2.1 Financial Status Consolidated Unit: NT$ thousands Item Current Assets Long-term Investments (Note 1) Property, Plant and Equipment Intangible Assets Other Assets (Note 2) Total Assets Current Liabilities Noncurrent Liabilities Total Liabilities Capital Stock Capital Surplus Retained Earnings Others 2018 951,679,721 29,304,796 2017 857,203,110 41,569,074 1,072,050,279 1,062,542,322 17,002,137 20,091,105 14,175,140 16,371,997 Difference 94,476,611 (12,264,278) 9,507,957 2,826,997 3,719,108 2,090,128,038 1,991,861,643 98,266,395 340,542,586 72,089,056 412,631,642 259,303,805 56,315,932 358,706,680 110,395,320 469,102,000 259,303,805 56,309,536 1,376,647,841 1,233,362,010 (15,449,913) (26,917,818) (18,164,094) (38,306,264) (56,470,358) 0 6,396 143,285,831 11,467,905 154,760,132 154,736,753 % 11% -30% 1% 20% 23% 5% -5% -35% -12% 0% 0% 12% -43% 10% 10% Equity Attributable to Shareholders of the Parent 1,676,817,665 1,522,057,533 Total Equity 1,677,496,396 1,522,759,643 Note 1: Long-term investments as of December 31, 2017 include noncurrent available-for-sale financial assets, held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method. Starting from 2018, upon initial application of IFRS 9 "Financial Instruments", the category includes noncurrent financial assets at fair value through other comprehensive income, and noncurrent financial assets at amortized cost, and investments accounted for using equity method. Note 2: Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets. • Analysis of Deviation over 20% Decrease in long-term investments: The decrease was mainly due to decrease in financial assets at amortized cost. Increase in other assets: The increase was mainly due to increase in deferred income tax assets and refundable deposits. Decrease in noncurrent liabilities: The decrease was mainly due to reclassification of bonds payable due in 1 year to current liabilities and decrease in guarantee deposits. Increase in other equity: The increase was mainly due to increase in currency exchange gain arising from translation of foreign operations in 2018. • Major Impact on Financial Position The above deviations had no major impact on TSMC’s financial position. • Future Plan on Financial Position: Not applicable. 94 95 Unconsolidated Unit: NT$ thousands Item Current Assets Long-term Investments (Note 1) Property, Plant and Equipment Intangible Assets Other Assets (Note 2) Total Assets Current Liabilities Noncurrent Liabilities Total Liabilities Capital Stock Capital Surplus Retained Earnings Others Total Equity 2018 469,966,106 550,524,494 2017 436,769,337 464,401,415 1,025,286,941 1,016,355,970 12,429,930 17,253,537 9,870,127 11,992,542 2,075,461,008 1,939,389,391 328,060,518 70,582,825 398,643,343 259,303,805 56,315,932 308,383,240 108,948,618 417,331,858 259,303,805 56,309,536 1,376,647,841 1,233,362,010 (15,449,913) (26,917,818) 1,676,817,665 1,522,057,533 Difference 33,196,769 86,123,079 8,930,971 2,559,803 5,260,995 136,071,617 19,677,278 (38,365,793) (18,688,515) 0 6,396 143,285,831 11,467,905 154,760,132 % 8% 19% 1% 26% 44% 7% 6% -35% -4% 0% 0% 12% -43% 10% Note 1: Long-term investments as of December 31, 2017 include held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method. Starting from 2018, upon initial application of IFRS 9 "Financial Instruments", the category includes noncurrent financial assets at fair value through other comprehensive income, and noncurrent financial assets at amortized cost, and investments accounted for using equity method. Note 2: Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets. • Analysis of Deviation over 20% Increase in intangible assets: The increase was mainly due to increase in software. Increase in other assets: The increase was mainly due to increase in deferred income tax assets and refundable deposits. Decrease in noncurrent liabilities: The decrease was mainly due to reclassification of bonds payable due in 1 year to current liabilities and decrease in guarantee deposits. Increase in other equity: The increase was mainly due to increase in currency exchange gain arising from translation of foreign operations in 2018. • Major Impact on Financial Position The above deviations had no major impact on TSMC’s financial position. • Future Plan on Financial Position: Not applicable. 6.2.2 Financial Performance Consolidated Unit: NT$ thousands Item Net Revenue Cost of Revenue Gross Profit before Unrealized Gross Profit on Sales to Associates Unrealized Gross Profit on Sales to Associates Gross Profit Operating Expenses Other Operating Income and Expenses, Net Income from Operations Non-operating Income and Expenses Income before Income Tax Income Tax Expenses Net Income Other Comprehensive Income (Loss), Net of Income Tax Total Comprehensive Income for the Year Total Net Income Attributable to Shareholders of the Parent Total Comprehensive Income Attributable to Shareholders of the Parent 2018 1,031,473,557 533,487,516 497,986,041 (111,788) 497,874,253 112,149,280 (2,101,449) 383,623,524 13,886,739 397,510,263 46,325,857 351,184,406 9,836,976 361,021,382 351,130,884 360,965,015 2017 977,447,241 482,616,286 494,830,955 (4,553) 494,826,402 107,901,668 (1,365,511) 385,559,223 10,573,807 396,133,030 52,986,182 343,146,848 (28,821,631) 314,325,217 343,111,476 314,294,993 Difference 54,026,316 50,871,230 3,155,086 (107,235) 3,047,851 4,247,612 (735,938) (1,935,699) 3,312,932 1,377,233 (6,660,325) 8,037,558 38,658,607 46,696,165 8,019,408 46,670,022 % 6% 11% 1% 2,355% 1% 4% -54% -1% 31% 0% -13% 2% NM 15% 2% 15% • Analysis of Deviation over 20% Increase in unrealized gross profit on sales to associates: The increase was mainly due to higher sales to investees in the fourth quarter of 2018. Decrease in other operating income and expenses, net: The decrease was mainly due to impairment losses on property, plant and equipment in 2018. Increase in non-operating income and expenses: The increase was mainly due to higher interest income in 2018. Increase in other comprehensive income (loss), net of income tax: The increase was mainly due to increase in currency exchange gain arising from translation of foreign operations in 2018. • Sales Volume Forecast and Related Information For additional details, please refer to “1. Letter to Shareholders” on pages 3-7 of this Annual Report. • Major Impact on Financial Performance The above deviations had no major impact on TSMC’s financial performance. • Future Plan on Financial Performance: Not applicable. 96 97 Unconsolidated Unit: NT$ thousands Item Net Revenue Cost of Revenue Gross Profit before Unrealized Gross Profit on Sales to Subsidiaries and Associates Unrealized Gross Profit on Sales to Subsidiaries and Associates Gross Profit Operating Expenses Other Operating Income and Expenses, Net Income from Operations Non-operating Income and Expenses Income before Income Tax Income Tax Expenses Net Income Other Comprehensive Income (Loss), Net of Income Tax Total Comprehensive Income for the Year 2018 2017 Difference 1,023,925,713 530,861,166 493,064,547 (109,046) 492,955,501 107,259,429 (1,668,234) 969,136,109 490,196,856 478,939,253 (1,562) 478,937,691 102,985,909 (1,261,665) 384,027,838 374,690,117 12,170,315 18,626,059 396,198,153 393,316,176 45,067,269 351,130,884 9,834,131 360,965,015 50,204,700 343,111,476 (28,816,483) 314,294,993 54,789,604 40,664,310 14,125,294 (107,484) 14,017,810 4,273,520 (406,569) 9,337,721 (6,455,744) 2,881,977 (5,137,431) 8,019,408 38,650,614 46,670,022 % 6% 8% 3% 6,881% 3% 4% -32% 2% -35% 1% -10% 2% NM 15% • Analysis of Deviation over 20% Increase in unrealized gross profit on sales to subsidiaries and associates: The increase was mainly due to higher sales to investees in the fourth quarter of 2018. Decrease in other operating income and expenses, net: The decrease was mainly due to impairment losses on property, plant and equipment in 2018. Decrease in non-operating income and expenses: The decrease was mainly due to lower share of profits of subsidiaries and associates in 2018. Increase in other comprehensive income (loss), net of income tax: The increase was mainly due to increase in currency exchange gain arising from translation of foreign operations in 2018. • Sales Volume Forecast and Related Information For additional details, please refer to “1. Letter to Shareholders” on pages 3-7 of this Annual Report. • Major Impact on Financial Performance The above deviations had no major impact on TSMC’s financial performance. • Future Plan on Financial Performance: Not applicable. 6.2.3 Cash Flow Consolidated Unit: NT$ thousands Cash Balance 12/31/2017 Net Cash Provided by Operating Activities in 2018 Net Cash Used in Investing Activities in 2018 Net Cash Used in Financing Activities in 2018 Effect of Exchange Rate Changes on Cash and Cash Equivalents in 2018 Cash Balance 12/31/2018 Remedy for Liquidity Shortfall Investment Plan Financing Plan 553,391,696 573,954,308 (314,268,908) (245,124,791) 9,862,296 577,814,601 None None • Analysis of Cash Flow NT$574.0 billion net cash generated by operating activities: mainly include net income and depreciation and amortization expenses. NT$314.3 billion net cash used in investing activities: primarily for capital expenditures and net purchase of marketable financial instruments. NT$245.1 billion net cash used in financing activities: primarily for cash dividend payment and repayment of corporate bonds. • Remedial Actions for Liquidity Shortfall As a result of positive operating cash flows and cash on-hand, remedial actions are not required. • Cash Flow Projection for Next Year: Not applicable. Unconsolidated Unit: NT$ thousands Cash Balance 12/31/2017 Net Cash Provided by Operating Activities in 2018 Net Cash Used in Investing Activities in 2018 Net Cash Used in Financing Activities in 2018 Cash Balance 12/31/2018 Remedy for Liquidity Shortfall Investment Plan Financing Plan 239,176,841 568,101,343 (296,555,902) (270,519,757) 240,202,525 None None • Analysis of Cash Flow NT$568.1 billion net cash generated by operating activities: mainly include net income and depreciation and amortization expenses. NT$296.6 billion net cash used in investing activities: primarily for capital expenditures. NT$270.5 billion net cash used in financing activities: primarily for cash dividend payment, capital injection in subsidiaries and repayment of corporate bonds. • Remedial Actions for Liquidity Shortfall As a result of positive operating cash flows and cash on-hand, remedial actions are not required. • Cash Flow Projection for Next Year: Not applicable. 6.2.4 Recent Years Major Capital Expenditures and Impact on Financial and Business Unit: NT$ thousands Plan Actual or Planned Source of Capital Total Amount for 2018 and 2017 Actual Use of Capital 2018 2017 Production Facilities, R&D and Production Equipment Cash flow generated from operations 639,620,221 312,302,551 327,317,670 Others Total Cash flow generated from operations 6,549,848 3,279,330 3,270,518 646,170,069 315,581,881 330,588,188 Based on capital expenditures listed above, TSMC’s annual production capacity increased by approximately 0.9 million 12-inch equivalent wafers in 2018. 6.2.5 Long-term Investment Policy and Results TSMC’s long-term investments, accounted for under the equity method, were all made for strategic purposes. However, when an investment is no longer of strategic value, it may be considered a financial investment. In 2018, the investment gains from these investments amounted to NT$3,057,781 thousand on a consolidated basis, increasing from previous year mainly due to demand increase. For future investments, TSMC will continue to focus on strategic purposes through prudent assessments. 98 99 6.3 Risk Management Enterprise Risk Management Framework The Board of Directors plays a key role in helping the Company identify and manage economic risks. The Risk Management organization periodically briefs the Audit Committee on the ever-changing risk environment facing TSMC, the focus of the Company’s enterprise risk management, and risk assessment and mitigation efforts. The Audit Committee’s Chairperson also reports on the risk environment and risk mitigation actions to be taken. TSMC and its subsidiaries are committed to proactively and cost effectively integrating and managing strategic, operational, financial and hazardous risks together with potential consequences to operations and financial results. TSMC operates an enterprise risk management (ERM) program based on both its corporate vision and its long-term, sustainable, responsibility to both industry and society. ERM seeks to provide the appropriate management of risks by TSMC on behalf of all stakeholders. A risk map that considers likelihood and impact severity is used to identify and prioritize corporate risk controls. Various risk treatment strategies are also adopted in response to corporate risks as they are identified. Scope of Risk Management Strategic Perspective • Regulatory change & compliance • Government policies • Changes in technology & industry • Technology development & competition • Demand & capacity expansion Operational Perspective • Sales & purchase concentration • Information security • Intellectual property rights • Recruiting qualified personnel • Corporate image Financial Perspective • Interest rate, foreign exchange, inflation & deflation, taxation • External financing • High-risk/high-leveraged investment, financial derivative transactions • Strategic investments Hazardous Events • Earthquakes & natural hazards • Fire or chemical spills • Climate change • Utility supply 100 Risk Identification & Assessment • RM Steering Committee & Audit Committee review & approve implementation of risk management strategy and prioritization of risk controls • RM Executive Council assesses risks using Risk Map considering likelihood & severity of risk events Risk Control & Mitigation • Cross-function risk communication to determine cost-effective risk controls • RM Executive Council is responsible for risk control implementation • Risk controls reviewed in annual control self assessment Risk Response • Crisis management and response plans • Scenario-based crisis response drills • Business Continuity Plans Risk Monitoring & Reporting • Risk Management organization reports to RM Steering Committee and Audit Committee on the focus of enterprise risk management, risk assessment, and mitigation efforts To mitigate the operational impacts of crisis events, ERM conducts pre-crisis risk assessment and identifies feasible strategies for crisis prevention. Corresponding to different scenarios, response procedures and recovery plans have been compiled. For specific severe crisis events involving multiple TSMC’s manufacturing sites, the cross-functional central crisis command center composed of operations and support functions is responsible for internal coordination to speed up response time and proactively communicate with related stakeholders. To raise risk awareness and strengthen the risk management culture in TSMC, RM (Risk Management) task forces were formed in 2018. Enhanced risk assessment and crisis response exercises were also conducted for critical risk events such as fire, earthquake, IT service disruption, IT security, supply chain disruption and utility supply disruption. In order to continuously mitigate corporate risks, crisis response exercises are used to test the integrity and risk-control effectiveness of ERM. To reduce supply chain disruption risks, TSMC created a task force comprised of members from fab operations, material management, risk management and quality system management to work with suppliers to develop business continuity plans and enhance supply chain resilience to manage their potential risks. Partly as a result of these efforts, there was no interruption in TSMC’s supply chain in 2018. As production capacity continued to expand with more advanced technology, TSMC initiated and implemented seismic protection engineering design, risk treatment practices and green manufacturing projects in all new fabs. 6.3.1 Risk Management Organization Chart TSMC’s Risk Management organization annually reports to the Audit Committee on the focus of enterprise risk management, risk assessment and mitigation efforts. The Audit Committee Chairperson also reports to the Board on such discussion and actions. Organization Functions Board of Directors/ Audit Committee RM Steering Committee Materials Management and Risk Management RM Executive Council RM Task Force RM Program RM Steering Committee • Consists of functional heads (with internal audit head sitting in as an observer) • Reports to Audit Committee • Reviews risk control progress • Identifies and approves prioritization of risk controls RM Executive Council • Consists of representatives from each function • Determines and implements cost-effective risk controls • Improves transparency and how risks are managed RM Program • Pushes RM task forces to enhance effective risk control • Coordinates and facilitates RM Executive Council on Risk Management activities • Consolidates ERM reports and updates to the RM Steering Committee RM Task Force • Identify potential scenarios and business impact • Determine risk mitigation actions responding to the scenarios • Compile crisis management procedures & conduct exercises 6.3.2 Strategic Risks Risks Associated with Changes in Technology and Industry • Industry Developments The electronics industries and semiconductor market are cyclical and subject to significant and often rapid fluctuations in product demand, which could impact TSMC’s semiconductor foundry business. Variations in order levels from customers may result in volatility in the Company’s revenue and earnings. From time to time, the electronics and semiconductor industries have experienced significant, occasionally prolonged periods of downturns and overcapacity. Because TSMC is, and will continue to be, dependent on the requirements of electronics and semiconductor companies for our services, periods of downturns and overcapacity in the general electronics and semiconductor industries could lead to reduced demand for overall semiconductor foundry services, including TSMC’s services. If TSMC cannot take appropriate actions such as reducing its costs to sufficiently offset declines in demand, the Company’s revenue, margin, and earnings will likely suffer during periods of downturns and overcapacity. • Changes in Technology The semiconductor industry and its technologies are constantly changing. TSMC competes by developing process technologies using increasingly advanced nodes and on manufacturing products with more functions. We also compete by developing new derivative technologies. If TSMC does not anticipate these changes in technologies and rapidly develop new and innovative technologies, or the Company’s competitors unforeseeably gain sudden access to additional technologies, TSMC may not be able to provide foundry services on competitive terms. In addition, TSMC’s customers have significantly decreased the time in which their products or services are launched into the market. If TSMC is unable to meet these shorter product time-to-market, it risks losing these customers. These factors have also been intensified by the shift of the global technology market to consumer driven products such as mobile devices, and increasing concentration of customers and competition (all further discussed among these risk factors). Also, the uncertainty and instability inherent in advanced technologies also impose challenges for achieving expected product quality and product yield. If we fail to maintain quality, it may result in loss of revenue and additional cost, as well as loss of business or customer trust. For example, in January 2019, we discovered the yield problems in 12- and 16-nanometer wafers caused by a batch of photoresist, which resulted in delayed delivery of products and are expected to have a negative effect on our gross margin and operating margin. We have strengthened inline wafer inspection and tightened control of incoming 101 material to deal with the increasing complexity of leading-edge technologies. If TSMC is unable to innovate new technologies that meet the demands of its customers or overcome the above factors, it may become less competitive and its revenue may decline significantly. other incentives that may be unavailable to TSMC. For example, Chinese companies are expected to be key players for new semiconductor fab development and fab equipment spending through 2020 in part due to various incentives provided by the Chinese government. Regarding the response measures for the above-mentioned risks, please refer to “2.2.4 TSMC Position, Differentiation and Strategy” on pages 13-15 of this annual report. Risks Associated with Decrease in Demand and Average Selling Price A vast majority of the Company’s revenue is derived from customers who use TSMC services in communication products, computing products, consumer electronics products and industrial/standard products. The demand for the Company’s products is significantly affected by the outlook of the major and emerging end markets for its products, such as smartphones, high-performance computing, automotive electronics and the IoT. Any deterioration in or a slowdown in the growth of such end markets resulting in a substantial decrease in the demand for overall global semiconductor foundry services, including TSMC’s products and services, could adversely affect the Company’s revenue. Further, semiconductor manufacturing facilities require substantial investment to construct and are largely fixed-cost assets once they are in operation. Because the Company owns most of its manufacturing capacities, a significant portion of TSMC’s operating costs is fixed. In general, these costs do not decline when customer demand or TSMC’s capacity utilization rates drop, and thus declines in customer demand, among other factors, may significantly decrease TSMC’s margins. Conversely, as product demand rises and factory utilization increases, the fixed costs are spread over increased output, which can improve TSMC’s margins. In addition, the historical and current trend of declining average selling prices (or “ASP”) of end use applications places downward pressure on the prices of the components that go into such applications. If the ASP of end use applications continues decreasing, the pricing pressure on components produced by the Company may lead to a reduction of TSMC’s revenue, margin and earnings. Risks Associated with Competition The markets for TSMC’s foundry services are highly competitive. TSMC competes with other foundry service providers, as well as a number of integrated device manufacturers. Some of these companies may have access to more advanced technologies than TSMC. Other companies may have greater financial and other resources than TSMC, such as the possibility of receiving direct or indirect government subsidy, economic stimulus funds, or Furthermore, the Company’s competitors may, from time to time, also decide to undertake aggressive pricing initiatives in one or several technology nodes. These competitive activities may decrease TSMC’s customer base, or its ASP, or both. If TSMC is unable to compete effectively with these new and aggressive competitors on technology, manufacturing capacity, product quality and customer satisfaction, it risks losing customers to these new contenders. Risks Associated with Changes in the Government Policies and Regulatory Environment TSMC management closely monitors all domestic and foreign governmental policies and regulations that might impact TSMC’s business and financial operations. During 2018 and as of the date of this Annual Report, the following changes or developments in governmental policies and regulations may influence the Company’s business operations: The R.O.C. Company Law was amended on August 1, 2018. The amendments permit a company authorized by its Articles of Incorporation to distribute its earnings on a quarterly or semi- annual basis, and to have its Board of Directors to approve the distribution if the earnings are distributed in cash. TSMC plans to amend its Articles of Incorporation at its June 2019 shareholders’ meeting to authorize TSMC’s Board of Directors to distribute the earnings in cash after the close of each quarter. With respect to environmental laws, in terms of air pollution protection, the regulations “Collection Rate for Stationary Pollution Source Air Pollutant Emissions Fees” and “Air Pollution Control Act” were amended in July and August 2018, respectively. These amendments impose new items for air pollution control fees and strengthen the surveillance of the stationary pollution sources, both of which may increase the Company’s operating costs, but the impact is not expected to be material. Also, the regulation “Toxic Chemical and High Concern Substances Control Act” was amended in January 2019, to which one of the amendments including establishing a new category of control substances called “Concern Chemical Substances” and their control requirements. The exact effects of which are still uncertain as the relevant sub-regulations have not been finalized yet, but we expect which may increase the Company’s operating costs. In addition, some other environmental laws were proposed to be amended (such as “Environmental Impact Assessment Act”), the exact effects of which are still uncertain as the amendments have not been finalized yet. However, we expect these amendments may affect our future expansion plans and increase the Company’s operating costs. It is not expected that other governmental policies or regulatory changes would materially impact TSMC’s operations or financial condition. 6.3.3 Operational Risks Risks Associated with Capacity Expansion TSMC performs long-term market demand forecast for its products and services to manage its overall capacity. Because market conditions are dynamic, TSMC’s market demand forecast may change significantly at any time. During periods of decreased demand, certain manufacturing lines or tools in some of the Company’s manufacturing facilities may be suspended or shut down temporarily. However, if subsequent demand increases rapidly in a short period of time, TSMC may not be able to restore the capacity in a timely manner to take advantage of the upturn. According to the market demand forecast, TSMC has recently been adding capacity in its 300mm wafer fabs to meet market needs for its products and services. Expansion of the Company’s capacity will increase its costs. For example, the Company will need to purchase additional equipment, hire additional personnel and train personnel to operate the new equipment. If TSMC does not increase its net revenue accordingly, its financial performance may be adversely affected by these increased costs. In order to mitigate the risk associated with capacity expansion, TSMC continuously watches for changes in market conditions and works closely with its customers. When market demand is not as expected, the Company will adjust its capacity plans in a timely manner to reduce the impact on its financial performance. Risks Associated with Sales Concentration Over the years, TSMC’s customer profile and the nature of its customers’ businesses have changed dramatically. While it generates revenue from hundreds of customers worldwide, TSMC’s ten largest customers in 2016, 2017, and 2018 accounted for approximately 68%, 66% and 68% of its net revenue in the respective year. The Company’s largest customer in 2016, 2017, and 2018 accounted for 17%, 23% and 22% of its net revenue in the respective year. Our second largest customer in 2016 accounted for 11% of our net revenue. In 2017 and 2018, our second largest customer accounted for less than 10% of our net revenue. A more concentrated customer base will subject our revenue to seasonal demand fluctuations from our large customers, and cause different seasonal patterns of our business. This customer concentration results in part from the changing dynamics of the electronics industry with the structural shift to mobile devices and applications and software that provide the content for such devices. There are only a limited number of customers who are successfully exploiting this new business model paradigm. Also, in order to respond to the new business model paradigm, TSMC has seen the changes of nature in its customers’ business models. For example, there is a growing trend toward the system companies developing their own designs and working directly with semiconductor foundries which makes their products and services more marketable in a changing consumer market. Also, since the global semiconductor industry is becoming increasingly competitive, some of TSMC’s customers have engaged in industry consolidations in order to remain competitive. Such consolidations have taken the form of mergers and acquisitions. If more of TSMC’s major customers consolidate, this will further decrease the overall number of its customer pool. The loss of, or significant curtailment of purchases by, one or more of the Company’s top customers, including curtailments due to increased competitive pressures, industry consolidation, a change in their designs, or change in their manufacturing sourcing policies or practices of these customers, or the timing of customer or distributor inventory adjustments, or change in its major customers’ business models may adversely affect TSMC’s results of operations and financial condition. Risks Associated with Purchase Concentration • Raw Materials TSMC’s production operations require that it obtains adequate supplies of raw materials, such as silicon wafers, gases, chemicals, and photoresist, on a timely basis and at commercially reasonable prices. In the past, shortages in the supply of some materials, whether by specific vendors or by the semiconductor industry generally, have resulted in occasional industry-wide price adjustments and delivery delays. For example, the increase in silicon wafer prices due to increased demand for such wafers across the industry had a negative impact on TSMC’s gross margin in 2018. Moreover, major natural disasters, political or economic turmoil occurring within the country of origin of such raw materials, may also significantly disrupt the availability of such raw materials or increase their prices. Also, since TSMC procures some of its raw materials from sole-sourced suppliers, there is a risk that TSMC’s need for such raw materials may not be met or that back-up supplies may not be readily available. In addition, recent trade tensions 102 103 could result in increased prices or even unavailability of raw materials due to tariffs, sanctions or other non-tariff barriers. TSMC’s revenue and earnings could decline if the Company is unable to obtain adequate supplies of the necessary raw materials in a timely manner or if there are significant increases in the costs of raw materials. To reduce the supply chain risk and to manage the cost effectively, TSMC is committing resources toward developing new supply sources. In addition, the Company continually encourages its suppliers to reduce their supply chain risk by decentralizing production plants and to improve their cost competitiveness by moving their production facilities to Taiwan from higher- cost areas. In the meantime, given that qualified backup suppliers are harder to obtain, TSMC is engaging early and extensively with primary suppliers on managing quality and capacity issues in order to be prepared for any unexpected need to ramp up production, which could leave the Company with insufficient time to re-tune its production process. For leading technology nodes, TSMC uses world-class processes at world-class facilities but also requires world-class material quality. To streamline supply chain risk management, the Company intensifies supplier site audits and meetings to extend supply chain best practices to its upstream suppliers. In addition, in response to the rapid increase or decrease in production capacity of new products, TSMC has continued to improve its inventory monitoring system to achieve more accurate demand forecasts to ensure that the supply chain maintains sufficient stock levels. The Company has established a supply chain risk assessment to ensure critical suppliers meet standards in labor, ethics, ESH (environmental, safety and health) and BCP (business continuity plan). To ultimately empower these suppliers to take responsibility for their supply chain, onsite audits are conducted regularly. Any regulatory violations or any adverse environmental impact event, as well as a failure to meet TSMC’s expectations in sustainability requirements, may result in business reduction or termination. • Equipment The Company’s operations and ongoing expansion plans depend on its ability to obtain an appropriate amount of equipment and related services from a limited number of suppliers in a market that is characterized from time to time by limited supply and long delivery cycles. During such times, supplier-specific or industry-wide lead times for delivery can be as long as six months or more. To better manage its supply chain, the Company has implemented various business models and risk management contingencies with suppliers to shorten the procurement lead time. Further, the growing complexities especially in advanced lithographic technologies may delay the timely availability of the equipment and parts needed to exploit time-sensitive business opportunities and also increase the market price for such equipment and parts. If TSMC is unable to obtain equipment in a timely manner to fulfill its customers’ demands on technology and production capacity, or at a reasonable cost, its financial condition and results of operations could be negatively impacted. Risks Associated with IT Security TSMC has adopted an IT security policy to establish and maintain a secure environment for TSMC’s information and systems. In addition, the Company has established an ISO 27001 information security management system (ISMS) with a formal information risk assessment and management process. Even though TSMC has established these policies, procedures, and many other security measures, it cannot guarantee that the Company’s computing systems, which control or maintain vital corporate functions such as its manufacturing operations and enterprise accounting, would be completely immune to crippling cyber attacks by any third party to gain unauthorized access to its internal network systems, to sabotage its operations and goodwill or otherwise. In the event of a serious cyber attack, TSMC’s systems may lose important corporate data or its production lines may be shut down pending the resolution of such attack. While TSMC seeks to continuously review and assess its cybersecurity policies and procedures to ensure their adequacy and effectiveness, it cannot guarantee that the Company will not be susceptible to new and emerging risks and attacks in the evolving landscape of cybersecurity threats. These cyber attacks may also attempt to steal TSMC’s trade secrets and other sensitive information, such as proprietary information of the Company’s customers and other stakeholders and personal information of the Company’s employees. Malicious hackers may also try to introduce computer viruses, corrupted software or ransomware into the Company’s network systems to disrupt its operations, blackmail it to regain control of its computing systems or spy on the Company for sensitive information. These attacks may result in TSMC having to pay damages for its delayed or disrupted orders or incur significant expenses in implementing remedial and improvement measures to enhance the Company’s cybersecurity network, and may also expose TSMC to significant legal liabilities arising from or related to legal proceedings or regulatory investigations associated with, among other things, leakage of employee, customer or third party information which TSMC has an obligation to keep confidential. TSMC may also be attacked by malicious software contained in the equipment it purchases and installs. In August 2018, TSMC experienced a computer virus outbreak, which caused the malfunction of a number of the Company’s computer systems and fab tools in Taiwan and interrupted the operations of certain equipment. The virus incident was due to a misoperation by the Company’s staff when installing a new equipment that contained malicious software unknown to the Company. Also, the Company’s firewall controls did not effectively prevent the software from propagating. While neither data integrity nor confidential information were compromised, the incident caused shipment delays and a loss of NT$2,596 million (US$85 million) classified as the cost of revenue in the third quarter of 2018. Remedial actions have since been taken, such as implementation of an automated system to prevent unprotected tool installation, and strengthening of firewall and network control to prevent computer viruses from spreading among tools and fabs, and enhancements to further improve the Company’s protection against malicious software are ongoing. TSMC has additionally budgeted an adequate amount for IT security solution enhancement. However, there can be no assurance that the Company is no longer subject to malicious software attacks. In addition, the Company employs certain third party service providers for TSMC and its affiliates worldwide with whom the Company needs to share highly sensitive and confidential information to enable them to provide the relevant services. Despite that TSMC requires the third party service providers to comply with the confidentiality and/or Internet security requirements in its service agreements with them, there is no assurance that each of them will strictly fulfill such obligations, or at all. The on-site network systems of and the off-site cloud computing networks such as servers maintained by such service providers and/or its contractors are also subject to risks associated with cyber attacks. If TSMC or its service providers are not able to timely resolve the respective technical difficulties caused by such cyber attacks, or ensure the integrity and availability of its data (and data belonging to its customers and other third parties) or control of its or its service providers’ computing systems, the Company’s commitments to its customers and other stakeholders may be materially impaired and its results of operations, financial condition, prospects and reputation may also be materially and adversely affected as a result. Risks Associated with Intellectual Property Rights The Company’s ability to compete successfully and to achieve future growth depends in part on the continued strength of its intellectual property portfolio. While we actively enforce and protect our intellectual property rights, there can be no assurance that its efforts will be adequate to prevent the misappropriation or improper use of its proprietary technologies, software, trade secrets or know-how. Also, the Company cannot assure you that, as its business or business models expand into new areas, it will be able to develop independently the technologies, patents, software, trade secrets or know-how necessary to conduct its business or that it can do so without unknowingly infringing the intellectual property rights of others. As a result, TSMC may have to rely on, to a certain degree, licensed technologies and patent licenses from others. To the extent that the Company relies on licenses from others, there can be no assurance that it will be able to obtain any or all of the necessary licenses in the future on terms it considers reasonable or at all. The lack of necessary licenses could expose TSMC to claims for damages and/or injunctions from third parties, as well as claims for indemnification by its customers in instances where it has contractually agreed to indemnify its customers against damages resulting from infringement claims. TSMC has received, from time-to-time, communications from third parties asserting that TSMC’s technologies, manufacturing processes, or the design IPs of the semiconductors made by TSMC or the use of those semiconductors by its customers may infringe their patents or other intellectual property rights. Because of the nature of the industry, the Company may continue to receive such communications in the future. These assertions have at times resulted in litigation. Recently, there has been a notable increase within the industry in the number of assertions made and lawsuits initiated by certain litigious, non- practicing entities and these litigious, non-practicing entities are also becoming more aggressive in their monetary demands and requests for court-issued injunctions. Such lawsuits or assertions may increase TSMC’s cost of doing business and may potentially be extremely disruptive if these non-practicing entities succeed in blocking the trade of products and services offered by TSMC. Also, as the Company expended its manufacturing operations into certain non-R.O.C jurisdictions, it has faced increasing challenges to manage risks of intellectual property misappropriation. Despite our efforts to adopt robust measures to mitigate the risk of intellectual property misappropriation in such new jurisdictions, we cannot guarantee that the protection measures we adopted will be sufficient to prevent us from potential infringements by others, or at all. 104 105 If TSMC fails to obtain or maintain certain technologies or intellectual property licenses or fails to prevent our intellectual property from being misappropriated and, if litigation relating to alleged intellectual property matters occurs, it could: (1) prevent the Company from manufacturing particular products or selling particular services or applying particular technologies; and (2) reduce our ability to compete effectively against entities benefiting from our misappropriated intellectual property, which could reduce its opportunities to generate revenue. TSMC has taken related measures to minimize potential loss of shareholder value arising from intellectual property claims and litigation filed against the Company. These measures include: strategically obtaining licenses from certain semiconductor and other technology companies as needed; timely securing intellectual property rights for defensive and/or offensive protection of TSMC technology and business; and aggressively defending against baseless litigation. Risks Associated with Litigious and Non-litigious Matters As is the case with many companies in the semiconductor industry, TSMC has received from time-to-time communications from third parties asserting that its technologies, its manufacturing processes, or the design of the semiconductors made by TSMC or the use of those semiconductors by its customers may infringe upon their patents or other intellectual property rights. These assertions have at times resulted in litigation by or against the Company and settlement payments by the Company. Irrespective of the validity of these claims, TSMC could incur significant costs in the defense thereof or could suffer adverse effects on its operations. TSMC is also subject to antitrust compliance requirements and scrutiny by governmental regulators in multiple jurisdictions. Any adverse results of such proceeding or other similar proceedings that may arise in those jurisdictions could harm TSMC’s business and distract its management, and thereby have a material adverse effect on its results of operations or prospects, and subject TSMC to potential significant legal liability. Currently, TSMC’s material legal proceedings are as follows: In May 2017, Uri Cohen filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America and other companies infringe four U.S. patents. Cohen’s case was transferred to and consolidated with the responsive declaratory judgment case for non-infringement of Cohen’s asserted patents filed by TSMC and TSMC North America in the U.S. District Court for the Northern District of California. In July 2018, all pending litigations between the parties in the U.S. District Court for the Northern District of California were dismissed. On September 28, 2017, TSMC was contacted by the European Commission, which has asked us for information and documents concerning alleged anti-competitive practices in relation to semiconductor sales. We are cooperating with the European Commission to provide the requested information and documents. In light of the fact that this proceeding is still in its preliminary stage, it is premature to predict how the case will proceed, the outcome of the proceeding or its impact. Other than the matters described above, as of the date of this Annual Report, TSMC is not currently a party to any other material legal proceedings. Risks Associated with Mergers and Acquisitions During 2018 and in 2019 as of the date of this annual report, there were no such risks for TSMC. Risks Associated with Recruiting Quality Personnel The Company relies on the continued services and contributions of its executive officers, skilled technical and other personnel. The Company’s business could suffer if it loses, for whatever reasons, the services and contributions of some of these personnel and it cannot adequately replace them. The Company may be required to increase or reduce the number of employees in connection with any business expansion or contraction, in accordance with market demand for its products and services. Since there is intense competition for the recruitment of these personnel, the Company cannot ensure that it will be able to fulfill its personnel requirements in a timely manner. Future R&D Plans and Expected R&D Spending For additional details, see “5.2.7 Future R&D Plans” on page 76 of this annual report. Changes in Corporate Reputation and Impact on Company’s Crisis Management TSMC has established an excellent corporate reputation around the world based on its core values of integrity, commitment, innovation and customer trust, as well as its outstanding operations, rigorous corporate governance, and dedication to social responsibility by serving as a good corporate citizen and continuing to pursue innovation in the economic, environmental and social dimensions of CSR. In 2018, TSMC was honored with awards and recognition for achievements in operations, corporate governance, patents, innovation, profit growth, investor relations, environmental protection, corporate sustainability and other fields. These included: the Taiwan Institute for Sustainable Energy 2018 Taiwan Corporate Sustainability Awards No.1 for Domestic Corporates and Platinum Medal For Sustainability Report; ranked top 5% in the Taiwan Stock Exchange Corporate Governance Evaluation; member of the Fortune Magazine 2018 Global 500; the R.O.C. Ministry of Economic Affairs Industrial Development Bureau “Green Factory Label”; the R.O.C. Environmental Protection Administration “Enterprise Green Procurement Award”; and ranked No. 1 in profit for the China Credit Information Services’ ranking of large Taiwan companies. In addition, TSMC was selected as a component of the Dow Jones Sustainability Indices for the 18th consecutive year, further strengthening the Company’s reputation and corporate culture. TSMC’s vision for corporate social responsibility is to “uplift society.” The Company maintains a Corporate Social Responsibility Committee, which serves as the Company’s highest-level CSR organization and acts as a decision-making center and communications platform for CSR. Committee members represent departments including Legal, Customer Service, Materials Management, Quality and Reliability, Research and Development, Risk Management, Finance, Investor Relations, Operations, Environment, Safety and Health (ESH), Human Resources, the TSMC Education and Culture Foundation, the TSMC Charity Foundation, and Public Relations. These departments address issues of concern to all stakeholders including employees, shareholders, customers, suppliers, government and society, and coordinate the Company’s resources and collaborate to further enhance TSMC’s positive corporate reputation. In addition, to address crisis events that could affect the Company’s public reputation, including earthquakes, fires, IT service disruption, supply chain disruption, environmental events and utility supply disruption, TSMC employs numerous preventative measures and maintains a “TSMC Crisis Command Center Control Instruction” and a “TSMC Emergency Response Procedure” to establish its emergency response command structure. Each TSMC fab holds regular monthly meetings of the ESH committee, and relevant departments hold regular drills and strive to continuously improve their emergency response and notification procedures to ensure clear channels of communication to stakeholders in crisis management. The Public Relations department serves as the designated window for external communications. In the event of an emergency, all departments immediately deploy emergency response measures to reduce casualties and minimize the impact on the surrounding environment, Company property and manufacturing operations. Responders also alert the public relations department at the first stage of response to ensure clear and consistent disclosure regarding the situation to maintain the Company’s reputation. Risks Associated with Change in Management After having led the Company for over 31 years, TSMC’s Founder, Dr. Morris Chang, retired from the Company after the Annual Shareholders’ Meeting on June 5, 2018. At the meeting, TSMC shareholders elected a new Board of Directors, which then convened to elect Dr. Mark Liu as Chairman and Dr. C.C. Wei as Chief Executive Officer (CEO) and Vice Chairman, completing the transition of responsibilities in accordance with the Company’s succession plan. 6.3.4 Financial Risks Economic Risks • Interest Rate Fluctuation TSMC is exposed to interest rate risks primarily related to its investment portfolio and outstanding debt, which are most sensitive to fluctuations in U.S. and R.O.C. interest rates. Changes in U.S. and R.O.C. interest rates affect the interest earned on the Company’s cash, cash equivalents and marketable securities and the fair value of those securities, as well as interest paid on its debt. The objective of TSMC’s investment policy is to achieve a return that will allow the Company to preserve principal and support liquidity requirements. TSMC invests primarily in time deposits and investment grade debt securities. By policy, TSMC limits the amount of credit exposure to any one issuer. TSMC’s investments in both fixed rate and floating rate interest earning securities carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely affected due to a rise in interest rates, while floating rate securities may generate less interest income than predicted if interest rates fall. As of December 31, 2018, a substantial majority of TSMC’s fixed income securities are classified as financial assets at fair value through other comprehensive income, and may have their market value adversely impacted due to the rise in interest rates. TSMC has 106 107 entered, and may enter in the future, into interest rate futures to partially hedge the interest rate risk on its fixed income investments. However, these hedges can offset only a small portion of the financial impact from movement in interest rates. As of December 31, 2018, all of TSMC’s long-term debt are fixed-rate, NT dollar denominated bonds and measured at amortized costs. As such, changes in interest rate would not affect the future cash flows and the fair value. • Foreign Exchange Volatility More than 90% of TSMC’s revenue is denominated in U.S. dollar and over one-half of its capital expenditures are denominated in currencies other than NT dollar, primarily in U.S. dollar, Japanese yen, and Euro. As a result, any significant fluctuations to its disadvantage in exchange rate of NT dollar against such currencies, in particular a weakening of U.S. dollar against NT dollar, would have an adverse impact on the Company’s revenue and profit as expressed in NT dollar. For example, every one percent depreciation of the U.S. dollar against the NT dollar would result in approximately 0.4 percentage point decrease in TSMC’s operating margin based on TSMC’s 2018 results. Conversely, if the U.S. dollar appreciates significantly versus other major currencies, the demand for the products and services of TSMC’s customers and for TSMC’s goods and services will likely decrease, which will negatively affect the Company’s revenue. TSMC uses foreign currency derivatives contracts, such as currency forwards and cross-currency swaps, to protect against currency exchange rate risks associated with non-NT dollar- denominated assets and liabilities and certain forecasted transactions. The Company also utilizes U.S. dollar denominated debt to partially offset currency risk arising from U.S. dollar denominated receivables for balance sheet hedges. These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on its assets and liabilities. Fluctuations in the exchange rate between the U.S. dollar and the NT dollar may affect the U.S. dollar value of the Company’s common shares and the market price of the Company’s American Depositary Shares (ADSs) and of any cash dividends paid in NT dollar on TSMC’s common shares represented by ADSs. • Inflation, Deflation and Resulting Market Volatility The global economy is becoming more vulnerable to sudden unexpected fluctuations in inflationary and deflationary expectations and conditions. Expectations of high inflation or deflation each adversely affects the economy, at both macro and micro levels, by reducing economic efficiency and disrupting investment decisions. Recently, higher interest rates in the U.S., international trade tensions, and the possible changes in economic, fiscal and monetary policies in major economies have exacerbated, and may further exacerbate fluctuations in inflationary or deflationary expectations. Such volatility may negatively affect the costs of TSMC’s operations and the business operations of its customers who may be forced to plan their purchases of TSMC’s goods and services within an uncertain economy. Therefore, the demand for TSMC’s products and services could unexpectedly fluctuate severely in accordance with expectations of inflation or deflation as affected by market volatility. • Amendments to Tax Regulations or Implementation of New Tax Laws Any amendments to existing tax regulations or the implementation of any new tax laws in the jurisdictions in which TSMC operates its business may have an adverse effect on its net income. While TSMC is subject to tax laws and regulations in various jurisdictions in which it operates or conduct business, TSMC’s principal operations are in the R.O.C. and it is exposed primarily to taxes levied by the R.O.C. government. Any unfavorable changes of tax laws and regulations in this jurisdiction could increase TSMC’s effective tax rate and have an adverse effect on its operating results. In order to control the tax risk, TSMC closely monitors all domestic and foreign governmental policies and regulations that might impact its financial operations. TSMC has established risk management procedures to collect information, analyze potential tax implications, and develop countermeasures. Risks Associated with External Financing In times of market instability, sufficient external financing may not be available to the Company on a timely basis, on commercially reasonable terms to the Company, or at all. If sufficient external financing is not available, when TSMC needs such financing to meet its capital requirements, it may be forced to curtail expansion, modify plans or delay the deployment of new or expanded services until it obtains such financing. Risks Associated with High-Risk/Highly Leveraged Investments; Lending, Endorsements, and Guarantees for Other Parties; and Financial Derivative Transactions TSMC did not make high-risk or highly leveraged financial investments in 2018 nor in 2019 up to the date of this annual report. TSMC provided a guarantee to TSMC Global, a wholly-owned subsidiary of TSMC, for its issuance of U.S. dollar-denominated senior unsecured corporate bonds in April 2013. TSMC Global repaid the full amount of its U.S. dollar-denominated senior unsecured corporate bonds due in April 2018. TSMC also provided a guarantee amounting to no more than US$83.21 million to TSMC North America, a wholly-owned subsidiary of TSMC, since November 2014 for its obligation to an office leasing contract. As of February 28, 2019, TSMC had RMB 6 billion and US$129 million intercompany loans arranged among the Company’s subsidiaries, which were all in compliance with relevant rules and regulations. In 2018, the financial transactions of a derivative nature that TSMC entered into were strictly for hedging and not for any trading or speculative purposes. For more transaction information and risk assessment, please refer to Note 7, Note 13, and Note 36 of the annual report section (II), Financial Statements. To control various types of financial transactions, the Company has established internal policies and procedures based on sound financial and business practices, all in compliance with the relevant rules and regulations issued by the Taiwan Securities and Futures Bureau. TSMC policies and procedures include “Policies and Procedures for Financial Derivative Transactions,” “Procedures for Lending Funds to Other Parties,” “Procedures for Acquisition or Disposal of Assets,” and “Procedures for Endorsement and Guarantee.” Risks Associated with Impairment Charges Under Taiwan-IFRSs, TSMC is required to evaluate its investments, in debt securities, investments accounted for using equity method, tangible assets and intangible assets for impairment whenever triggering events or changes in circumstances indicate that the asset may be impaired. If certain criteria are met, TSMC is required to record an impairment charge. TSMC is also required under Taiwan-IFRSs to evaluate goodwill for impairment at least on an annual basis or more frequently whenever triggering events or changes in circumstances indicate that goodwill may be impaired and the carrying value may not be recoverable. TSMC holds investments in certain publicly listed and private companies, some of which have incurred certain impairment charges as disclosed in Annual Report section (II), Financial Statements. The determination of an impairment charge at any given time is based significantly on the projected results of the Company’s operations over several years subsequent to that time. Consequently, an impairment charge is more likely to occur during a period when the Company’s operating results are otherwise already depressed. TSMC has established the process and system to closely monitor and assess the risk of impairment charge. However, the management is unable to estimate the extent or timing of any impairment charge for future years, or whether such impairment charge may have a material adverse effect on the Company’s net income. 6.3.5 Hazardous Risks and Utility Supply Interruption or Shortage Risks The frequency and severity of catastrophic events, including natural disasters and severe weather has been increasing, in part due to climate change or systemic regional geological changes that manifest in damaging earthquakes. TSMC has manufacturing and other operations in locations subject to natural disasters, such as flooding, earthquakes, tsunamis, typhoons, and droughts that may cause interruptions or shortages in the supply of utilities, such as water and electricity, that could disrupt operations. In addition, TSMC’s suppliers and customers also have operations in such locations. For example, most of TSMC’s production facilities, as well as those of many of its suppliers and customers and upstream providers of complementary semiconductor manufacturing services, are located in Taiwan and Japan, which are susceptible to earthquakes, tsunamis, flooding, typhoons, and droughts from time to time that may cause shortages in electricity and water or interruptions to our operations. 108 109 Thus, if one or more natural disasters that result in a prolonged disruption to TSMC’s operations or those of its customers or suppliers, or if any of its fabs or vendor facilities were to be damaged or cease operations as a result of an explosion or fire, it could reduce the Company’s manufacturing capacity and may cause us to lose important customers, thereby having a potentially adverse and material impact on our operational and financial performance. TSMC has occasionally suffered power outages or surges in Taiwan caused by difficulties encountered by its electricity supplier, the Taiwan Power Company, or other power consumers on the same power grid, which have resulted in interruptions to our operations. Such shortages or interruptions in its electricity supply could further be exacerbated by changes in the energy policy of the government which will make Taiwan a nuclear-free country by 2025. If the Company is unable to secure reliable and uninterrupted supply of electricity to power its manufacturing fabs within Taiwan, its ability to satisfy the orders of its customers will be severely undercut. TSMC maintains a comprehensive risk management system dedicated to the safety of people, the conservation of natural resources, and the protection of property. In order to effectively handle emergencies and natural disasters, at each facility management has developed comprehensive plans and procedures that focus on risk prevention, emergency response, crisis management and business continuity. All TSMC manufacturing fabs have been ISO 14001 certified (environmental management system) and OHSAS 18001 certified (occupational health and safety management system). All manufacturing fabs in Taiwan have also been TOSHMS (Taiwan Occupational Safety and Health Management System) certified. The new fabs will also attain the above certifications within 18 months after acquiring factory registration certification. The Company pays special attention to preparedness of emergency response to disasters, such as typhoons, floods and droughts caused by climate change, earthquakes, pandemics (such as H1N1 influenza), and disruptions to water, electricity and other public utilities. TSMC has established a company-wide taskforce dedicated to managing the risk of a water or electricity shortage that might arise due to climate change. This taskforce monitors the external supply and internal demand for water and electricity, and collaborate with Taiwan Semiconductor Industry Association, the Allied Association for Science Park Industries, and related public agencies to ensure stable water and electricity supply. TSMC has further strengthened its business continuity plans, which include periodic risk assessment, risk mitigation, and implementation through the establishment of emergency taskforces when necessary, combined with the preparation of a thorough analysis of the emergency, its impact, alternative actions, and solutions for each possible scenario together with appropriate precautionary and/or recovery measures. Each taskforce is given the responsibility of ensuring TSMC’s ability to minimize personal injury, business disruption and financial impact under the circumstances. TSMC periodically review business continuity plan and revise it according to exercise results and implementation. In response to the impact of the earthquake that occurred in Taiwan, TSMC conducted a continuous improvements including enhancing earthquake emergency response, enhancing tool anchorage and seismic isolation facilities, preparedness for speeding up tool salvage and production recovery. The improvements also have been embedded in new fab design. TSMC business continuity procedures were enhanced with reference to ISO 22301 business continuity management. TSMC and many of its suppliers use combustible and toxic materials in their manufacturing processes and are therefore subject to risks that cannot be completely eliminated arising from explosion, fire, or environmental influences. Although the Company maintains many overlapping risk prevention and protection systems, as well as fire and casualty insurance, TSMC’s risk management and insurance coverage may not always be sufficient to cover all of the Company’s potential losses. If any of TSMC’s fabs or vendor facilities were to be damaged or cease operations as a result of an explosion, fire or environmental causes, it could reduce the Company’s manufacturing capacity and may lead to the loss of important sales and customers, and impact on TSMC’s financial performance. In addition to periodic fire-protection inspections and firefighting drills, the Company has also carried out a corporate-wide fire risk mitigation project focused on managerial and hardware improvements. 6.3.6 Risks Associated with Non-Compliance with Environmental and Climate Related Laws and Regulations, and with Other International Laws, Regulations and Accords Because TSMC engages in manufacturing activities in multiple jurisdictions and conducts business with customers located worldwide, such activities are subject to a myriad of governmental regulations. For example, the manufacturing, assembling and testing of TSMC’s products require the use of metals, chemicals and materials that are subject to environmental, climate-related, health and safety, and humanitarian conflict-free sourcing laws, regulations and guidelines issued worldwide. The Company’s failure to comply with any such laws or regulations, as amended from time to time, and its failure to comply with any information and document sharing requests from the relevant authorities in a timely manner could result in: • significant penalties and legal liabilities, such as the denial of import permits or third party private lawsuits, criminal or administrative proceedings; • the temporary or permanent suspension of production of the affected products; • unfavorable alterations in TSMC manufacturing, fabrication and assembly and test processes; • challenges from customers that place TSMC at a significant competitive disadvantage, such as loss of actual or potential sales contracts in case the Company is unable to satisfy the applicable legal standard or customer requirement; • restrictions on TSMC operations or sales; • loss of tax benefits, including termination of current tax incentives, disqualification of tax credit application and repayment of the tax benefits that the Company is not entitled to; and • damage to TSMC’s goodwill and reputation. Complying with applicable laws and regulations, such as environmental and climate related laws and regulations, could also require TSMC, among other things, to do the following: (1) purchase, use or install remedial equipment; (2) implement remedial programs such as climate change mitigation programs; (3) modify product designs and manufacturing processes, or incur other significant expenses such as obtaining substitute raw materials or chemicals that may cost more or be less available for the Company’s operations. TSMC’s inability to timely obtain approvals necessary for the conduct of business could impair its operational and financial results. For example, if the Company is unable to timely obtain environmental related approvals needed to undertake the development and construction of a new fab or expansion project, then such inability may delay, limit, or increase the cost of its expansion plans that could also in turn adversely affect its business and operational results. In light of increased public interest in environmental issues, TSMC’s operations and expansion plans may be adversely affected or delayed responding to public concern and social environmental pressures even if the Company complies with all applicable laws and regulations. TSMC believes that climate change should be regarded as a significant corporate risk that must be controlled to improve competitiveness. Climate change has the potential to create legal, physical and other risks. TSMC’s control measures are as follows: • Climate Regulatory Risks Greenhouse gas (GHG) control regulations and agreements in countries around the world are becoming increasingly stringent. Enterprises are legally required to regularly disclose GHG-related information as well as limit GHG emissions. Future legal requirements, such as carbon or energy taxes and carbon emission cap-and-trade may drive up production costs, including material and energy costs. TSMC China is subject to the Shanghai carbon emission cap-and-trade regulation, which has had cost impacts since 2016. TSMC continues to monitor legislative trends and communicate with various governments through industrial organizations and associations to set reasonable and feasible legal requirements. • Conflict Minerals Risks For additional details, see the Supplier and Contractor Management section under 7.2.3 Safety and Health on page 128 of this annual report. • Climate Disaster Risks Abnormal climate caused by the greenhouse effect has increased the frequency and severity of climate disasters – storms, floods, drought, and water shortages – causing considerable impacts on business operations and supply chains. TSMC believes that climate change control should take into account both mitigation and adaption, and this requires cooperation among government, society and industry to reduce risk. To sustain electricity and raw water supplies, therefore, in addition to water-saving measures the Company undertakes at its own facilities and those of upstream and downstream partners, TSMC participates in the Taiwan Science Park Industrial Union Experts Committee platform, and is actively involved in regular meetings with Taipower Company and the Taiwan Water Corporation to discuss supply and allocation issues and disaster responses. 110 111 One or more of TSMC’s existing shareholders may, from time to time, dispose of significant numbers of TSMC common shares or ADSs. For example, the National Development Fund, Executive Yuan, R.O.C. which owned 6.38% of TSMC’s outstanding shares as of February 28, 2019, had from time to time in the past sold TSMC shares in the form of ADSs in several transactions. As of the date of this annual report, no shareholder owns 10% or more of TSMC’s total outstanding shares. Risks of Trade Policies As TSMC’s revenue is primarily derived from sales to major economies in the world (please refer to “2.2.4 TSMC Position, Differentiation and Strategy” on page 13 of this annual report), any changes in the trade policies (such as the increase of tariffs on certain products, the implementation of import and export controls, and the adoption of other trade barriers) of such major economies can affect the sales of TSMC or its customers and thereby affect TSMC’s operating results. Accordingly, TSMC continues to monitor the recent shifts in trade policies and measures among the relevant major economies and will take corresponding responsive actions in accordance with subsequent developments. Other Material Risks During 2018 and in 2019 as of the date of this annual report, TSMC’s management is not aware of any other risk event that could impart a potentially material impact on the financial status of the Company. • Other Climate Risks Climate change is a concern to the global supply chain, necessitating energy conservation, carbon reduction, and disaster prevention. For example, the Responsible Business Alliance (RBA) has also required members’ suppliers to disclose GHG emissions information. TSMC not only discloses its own GHG emissions information each year, but it also assists and requires its major suppliers to establish a GHG inventory system and conduct reduction programs. TSMC insists that its major suppliers submit GHG emissions and reduction information as an important index of sustainability scoring in its procurement strategy. To mitigate risks resulting from climate change, TSMC continues to actively carry out energy conservation measures, participate in voluntary emission reduction projects for perfluorinated compounds (PFCs), and conduct GHG inventory and verification on an annual basis. TSMC has publicly disclosed climate change information annually through the following channels: • GHG emissions and reduction-related information submitted for evaluation to the Dow Jones Sustainability Index every year since 2001. • GHG-related information disclosed in its CSR report on the Company website annually since 2008. TSMC also provides information to customers and investors upon request. • Participation in an annual survey conducted by the nonprofit Carbon Disclosure Project (CDP) since 2005. The survey includes GHG emission and reduction information for all TSMC fabs and subsidiaries. • Adherence to the ISO 14064-1 standard to conduct a GHG inventory and acquire verification by an accrediting agency since 2006. TSMC also reports GHG inventory data to the Taiwan Environmental Protection Administration (EPA) and the Taiwan Semiconductor Industry Association (TSIA). 6.3.7 Other Risks Potential Impact and Risks Associated with Sales of Significant Numbers of Shares by TSMC’s Directors, and/or Major Shareholders Who Own 10% or More of TSMC’s Total Outstanding Shares The value of TSMC shareholders’ investment may be reduced by possible future sales of TSMC shares owned by major shareholders. 112 113 Corporate Social Responsibility 7.1 Overview 7 Since its establishment, TSMC has not only strived for the highest achievements in its core business of dedicated IC foundry services but has also actively fulfilled its corporate social responsibility and developed positive relationships with all stakeholders including employees, shareholders, customers, suppliers, and society to create a sustainable future and embrace “uplifting society” as its main vision. Guidance for the Implementation of CSR “TSMC Corporate Social Responsibility Policy” is TSMC’s overall guiding principle for sustainable development. Following the Company vision of uplifting society, the three primary missions of TSMC are Acting with Integrity, Strengthening Environmental Protection, and Caring for the Disadvantaged. Corporate Social Responsibility Policy is TSMC’s overall guiding principle for sustainable development. The CSR matrix below clearly defines the scope of the Company’s responsibilities. The horizontal axis shows the seven areas where TSMC aims to set a benchmark for sustainability: morality, business ethics, economy, rule of law, sustainability, work/life balance and happiness, and philanthropy. On the vertical axis are actions that TSMC has taken to fulfill its responsibilities. TSMC CSR Matrix TSMC Integrity Law Compliance Anti-Corruption Anti-Bribery Anti-Cronyism Environmental Protection Climate Control Energy Conservation Corporate Governance Provide Well-Paying Jobs Good Shareholder Return Employees’ Work-Life Balance Encourage Innovation Good Work Environment TSMC Charity Foundation TSMC Education and Culture Foundation Society Morality Business Ethics Economy Rule of Law Sustainability Work/Life Balance Happiness Philanthropy V V V V V V V V V V V V V V V V V V V V V V CSR Management As the highest-level CSR decision-making center within TSMC, the Corporate Social Responsibility Committee is chaired by the CFO and serves as a cross-departmental communication platform for corporate social responsibility of TSMC. The committee sets the Company’s CSR targets and strategies for the year and meets each quarter to monitor the execution of budgets and performance by each department to ensure the guiding principles are implemented effectively in the Company’s daily operations. The Corporate Social Responsibility Committee reports annually to the Board of Directors on implementation results of the prior year and the work planned for the upcoming year by adhering to the vision and mission of TSMC Corporate Social Responsibility Policy. The committee is comprised of representatives from each functional department, including legal, customer service, materials management, quality and reliability, research and development, risk management, finance, investor relations, operations, environment, safety and health, human resources, the TSMC Education and Culture Foundation, the TSMC Charity Foundation, and public relations. All departments collaborate to realize sustainability objectives of interest to stakeholders, namely employees, shareholders/investors, customers, suppliers, government, society, and others. 115 In 2018, the committee focused on climate change mitigation and adaption. TSMC optimized energy consumption efficiency, launched renewable energy adoption, and simultaneously strengthened responsible supply chain management by performing supplier risk assessments and signing Supplier Code of Conduct. For social engagement, the TSMC Education and Culture Foundation and the TSMC Charity Foundation also actively integrated internal and external resources provided by TSMC and its employees to enforce the responsibility of a corporate citizen to achieve positive social impacts. The CSR plan for 2019 calls for TSMC to focus on climate change initiatives, strengthen responsible supply chain management, and integrate resources and strengths among divisions through the Corporate Social Responsibility Committee in order to continue aligning the Company’s sustainability targets with the United Nations sustainability development goals (SDGs). Stakeholder Engagement TSMC has established multiple systematic channels to communicate with stakeholders, including a “Contact Us” section on the corporate website and a CSR website, as well as a CSR mailbox. In order to understand the level of stakeholder interest in sustainability issues, TSMC conducted three studies focused on identification, prioritization and validation with regard to these material issues. In 2018, the TSMC Corporate Social Responsibility mailbox received 361 emails, subjects included corporate governance, innovation and services, supply chain, green manufacturing, workplace, and social issues. Submissions were primarily regarding requests for visits, questions on daily operations, feedback from the public, and proposals for donations and collaboration. By responding with direct action from related departments and a timely reply from the Public Relations Department, the Company continues to support communication and exchange as well as positive developments in society. Stakeholders and Communication Channels in 2018 Stakeholders Communication Channels Employees • Corporate intranet, internal emails and other announcement channels (such as promotion posters at facilities) • Human resources representatives • Employee training and classroom courses • Regular and ad-hoc communication meetings, such as Manager Development Consulting Committee, Operations Engineer Training Committee, Manufacturing Department Technical Committee, etc. • Employee voice channels, such as Immediate Response System, Employee Opinion Box, Wellness Center, wellness website, each function’s PIP committee, Employee PIP Opinion Dedicated Line, etc. • Ombudsman System • Audit Committee Whistleblower System • EWC event questionnaire survey Shareholders/Investors • Annual shareholder meeting • Quarterly earnings conference call • Investor conferences and face-to-face meetings • Telephone and email responses to investors' questions and feedback collection • Annual reports, CSR reports, 20-F filings to US SEC, material announcements to Taiwan Stock Exchange, and corporate news on the Company's website Customers Suppliers Government Society 116 • Customer satisfaction survey • Customer meetings • Customer audits • Business and technology assessment • Email responses to the issues that customers are concerned about occasionally • Supplier meetings • Supplier onsite audits • Supply Chain Management Forum • Supply Chain ESH Forum • Supplier Ethics Code Awareness Training • Advanced Process Material Workshop • Official correspondence and visits • Industry experience and advice sharing • Meetings (such as communication meetings, public hearings, forums, seminars or social gatherings) • Communication with government authorities through industry organizations, including the Association of Science Park Industries, Taiwan Semiconductor Industry Association, World Semiconductor Council, and Chinese National Federation of Industries • Arts events in the communities • Sponsorship of youth development events • Sponsorship of charity projects and emergency aid • Sponsorship of non-profit organizations to support educational projects • Professorship endowments and student scholarships at universities • Support of non-profit organizations and institutions via monetary and in-kind donation, as well as providing necessary manpower for a good cause • Regular visits to National Museum of Science, Hsinchu Veterans Home, St. Teresa Children Center, Jacana Ecology Education Park, remote schools and TSMC ecological parks to provide volunteer services • Annual volunteer activities in collaboration with TSMC fabs and divisions • TSMC corporate social responsibility website, newsletters and mailbox Responsibilities of TSMC CSR Committee Members Committee Members Responsibilities Legal Corporate Governance, Code of Conduct, Legal Compliance (including fair competition, privacy and personal information, and protection for whistle-blowers), Intellectual Property, Protection of Confidential Information Stakeholders Employees Government Society (Note) Customer Service Customers Service and Satisfaction, Customer Trust, Customer Confidentiality, RBA and its Code of Conduct Customers Materials Management Materials and Supply Chain Risk Management, Supplier Management, Conflict Minerals, RBA and its Code of Conduct Quality and Reliability Product Quality and Reliability, Product Recall Mechanism Research and Development Innovation Management, Green Products Risk Management Risk Management, Crisis Management, Emergency Response and Action Plan Finance Financial Disclosure, Dividend Policy, Tax Strategy Investor Relations Resolving Issues of Stakeholder Concern, Establishing Trusting Long-term Relationships, Effective Two-way Communication, Annual Report Production Operations Operational Eco-efficiency, Pollution Prevention, Water Resource Risk Management, Green Manufacturing Environment, Safety and Health Environmental Policy and Management System, Climate Change Mitigation and Adaption, Pollution Prevention, Energy Consumption Efficiency, Carbon Emissions and Carbon Rights Management, Product Environmental Responsibility, Response Mechanism for Environmental Issues, Environmental Spending, Green Supply Chain, Policy and Management Systems for Occupational Health and Safety, Workplace Health and Safety, Occupational Disease Prevention and Health Promotion, Communication of ESH Regulations Human Resources Talent Attraction and Retention, Proprietary Information Protection, Employees’ Physical and Mental Well-Being and Work-Life Balance, Labor-Management Relations and Employee Engagement, Labor Rights, Training and Development, Mobility, RBA and its Code of Conduct TSMC Education and Culture Foundation, TSMC Charity Foundation Philanthropy, Community Relations Public Relations Stakeholder Engagement, Mechanism for Reflecting Issues of Social Concern, Media Relations Note: Society includes community, non-governmental organizations, non-profit organizations, and the public. Suppliers Customers Suppliers Employees Customers Suppliers Employees Investors Customers Suppliers Government Society Employees Investors Customers Suppliers Government Investors Customers Investors Suppliers Employees Investors Customers Suppliers Government Society Employees Society Society TSMC believes that enterprises and society are inseparable. As the only semiconductor company chosen for the Dow Jones Sustainability World Indices over the past 18 consecutive years, TSMC is laying the foundation of an enterprise built to last and creating sustainable value for the Company and society going forward by maintaining proactive communications and positive relationships with all stakeholders in economic, environmental and social dimensions. Built on the cornerstone of integrity, TSMC believes that customer trust is enhanced if the Company follows the law and values corporate governance. Investors will be more willing to invest in the Company over the long-term if the Company maintains solid financial performance and a sustainable dividend policy. Employees are TSMC’s most important asset and they have made a reciprocal commitment to the Company to fulfill its core values. At TSMC’s urging, suppliers – both upstream and downstream – have been devoting more resources to manufacturing processes and working together to build green factories and supply chains that are friendly to the environment. TSMC combines the strengths that drive society forward, and hopes to build a better future together with the engagement of all stakeholders. 117 Organization Awards and Recognitions Category Organization Awards and Recognitions Environment, Safety and Health U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) certification • "Gold" class certification – Fab 12 P7 Manufacturing Facility, Fab 12 P7 Office Building, Fab 14 P7 Office Building, Fab 15 P5 Manufacturing Facility, Fab 15 P6 Manufacturing Facility, Fab 16 P1 Manufacturing Facility R.O.C. Ministry of the Interior “Ecology, Energy Saving, Waste Reduction and Health (EEWH)” certification • "Diamond" class of green building certification – Fab 15 P5 Manufacturing Facility R.O.C. Ministry of Economic Affairs • Green Factory Label – Fab 12 P1/P2, Fab 12 P3, Fab 14 • Excellence in Carbon Reduction Award – Fab 12A, Fab 12B, Fab 14B • Water Conservation Award – Fab 15A • Excellence in Energy Conservation and Carbon Reduction Award, Electronic Industry – Fab 14B R.O.C. Ministry of Labor • Excellence in Labor Safety and Hygiene Award – Fab 12B P6, Fab 14B, Fab 15A R.O.C. Environmental Protection Administration • Enterprise Green Procurement Award – Fab 2 and Fab 5, Fab 3, Fab 6, Fab 8, Fab 12A, Fab 12B, Fab 14A, Fab 14B, Advanced Backend Fab, Advanced Backend Fab 3 Hsinchu Science Park Administration • Water Conservation Award – Advanced Backend Fab 3 Central Taiwan Science Park Administration • Excellence in Labor Safety and Hygiene Award – Fab 15A • Excellence in Waste Reduction and Resource Circulation Award – Fab 15 • Water Conservation Award – Fab 15A Southern Taiwan Science Park Administration • Excellence in Environmental Protection – Fab 14A Hsinchu County Environmental Protection Bureau • Enterprise Environmental Performance Evaluation – Fab 2 and Fab 5, Fab 3, Fab 12A, Fab 12B Taichung City Economic Development Bureau • Renewable Energy Promoting Contribution Award Society Forbes Veterans Affairs Council • World's Best Employers • Certificate of Merit for Hiring Veterans 2018 CSR Awards, Recognitions and Ratings Category Overall CSR Taiwan Institute of Sustainable Energy Dow Jones Sustainability Indices (DJSI) • The Most Prestigious Sustainability Awards – Top Ten Domestic Corporates • Taiwan Top 50 Corporate Responsibility Report Awards – IT & IC Manufacturing Industry • Dow Jones Sustainability World Index for the 18th consecutive year • Dow Jones Sustainability Emerging Markets Index MSCI ESG Indexes FTSE4Good Index Sustainalytics ISS-oekom Corporate Knights National Taipei University College of Business Economy, Governance Institutional Investor Magazine IR Magazine IFI Claims Thomson Reuters FORTUNE Global Finance Nikkei Taiwan Stock Exchange R.O.C. Ministry of Economic Affairs Intellectual Property Office PricewaterhouseCoopers China Credit Information Service CommonWealth Magazine Asiamoney 24/7 Wall Street IPBC Asia • MSCI ACWI ESG Leaders Index component • MSCI ACWI SRI Index component • FTSE4Good Emerging Index component • FTSE4Good TIP Taiwan ESG Index component • Rated an ESG “Leader” within the Semiconductor Industry • “Prime” rated by ISS-oekom Corporate Rating • Global 100 Most Sustainable Corporations • Taiwan Sustainability Index component • Most Honored Company (Technology/Semiconductors) – All-Asia • Best CEO (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best CEO (Technology/Semiconductor) – 1st Place (buy-side)- All-Asia • Best CEO (Technology/Semiconductor) – 1st Place (sell-side)- All-Asia • Best CFO (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best CFO (Technology/Semiconductor) – 1st Place (buy-side)- All-Asia • Best CFO (Technology/Semiconductor) – 1st Place (sell-side)- All-Asia • Best Investor Relations Program (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best Investor Relations Program (Technology/Semiconductor) – 1st Place (buy-side)- All-Asia • Best Investor Relations Program (Technology/Semiconductor) – 1st Place (sell-side)- All-Asia • Best Investor Relations Professional (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best Investor Relations Professional (Technology/Semiconductor) – 1st Place (buy-side)- All-Asia • Best Investor Relations Professional (Technology/Semiconductor) – 1st Place (sell-side)- All-Asia • Best Corporate Governance (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best ESG/SRI Metrics (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best Analyst Days (Technology/Semiconductor) – 1st Place (buy-side and sell-side)- All-Asia • Best Investor Relations (Awards by region/Taiwan) • Best Crisis Management • 2018 Top 50 US Patent Assignees • Top 100 Global Technology Leaders • Fortune Global 500 • Best Corporate FX Awards-Asia-Pacific • Nikkei Asia 300 Indexes • Top 5% in Corporate Governance Evaluation of Listed Companies for the 4th consecutive year • TWSE Corporate Governance 100 Index component • Ranked No. 1 in Top 100 Patent Applicants in Taiwan • Global Top 100 Companies by market capitalization for the 6th consecutive year • Ranked No. 1 in Profitability of Large Taiwan Companies • Corporate Social Responsibility Award • Overall Most Outstanding Company in Taiwan • Most Outstanding Company in Taiwan – Semiconductors & Semiconductor Equipment Sector • The World's 50 Most Innovative Companies • Asia IP Elite – Semiconductor Team of the Year (Continued) 118 119 7.2 Environmental, Safety and Health (ESH) Management TSMC believes its environmental, safety and health practices must not only meet legal requirements, but should also measure up to or exceed recognized international best practices. TSMC’s ESH policies aim to reach the goals of “zero incident” and “environmental sustainable development,” and to make TSMC a world-class company in environmental, safety and health management. The Company’s strategies for reaching these goals are to comply with regulations, promote safety and health, strengthen recycling and pollution prevention, manage ESH risks, instill an ESH culture, establish a green supply chain, and fulfill its related corporate social responsibilities. All TSMC manufacturing facilities have received ISO 14001: 2015 certification for environmental management systems and OHSAS 18001: 2007 certification for occupational safety and health management systems. All fabs in Taiwan have also been TOSHMS (Taiwan Occupational Safety and Health Management System) certified since 2009. TSMC strives for continuous improvement and actively seeks to enhance climate-change management, pollution prevention and control, power and resource conservation, waste reduction and recycling, safety and health management, fire and explosion prevention as well as to minimize the impact of earthquake damage, so as to reduce overall environmental, safety and health risks. In order to meet regulatory and customer needs for the management of hazardous materials, TSMC adopted the IECQ QC 080000 Hazardous Substance Process Management (HSPM) System. All TSMC manufacturing facilities have been QC 080000 certified since 2007. By practicing QC 080000, TSMC ensures that its products comply with regulatory and customer requirements, including the European Union’s “Restriction of Hazardous Substances (RoHS) Directive,” the EU’s “Registration, Evaluation, Authorization and Restriction of Chemicals (REACH),” the “Montreal Protocol on Substances that Deplete the Ozone Layer” (the “halogen-free in electronic products” initiative), Perfluorooctane Sulfonates (PFOS), Perfluorooctanoic Acid (PFOA) and its related substances restriction standards. In addition, TSMC started a reduction project for the hazardous substance n-methylpyrrolidinone (NMP). This project reduced NMP usage by 48% in 2018 and will be continued to promote further reduction. Since 2011, TSMC has adopted the ISO 50001 Energy Management System for the continuous improvement of energy conservation. TSMC’s Fab 12 Phase 4 data center is Taiwan’s first facility to earn the ISO 50001 certification for a high-density computing data center. As of 2016, TSMC has three fabs – Fab 12 Phase 4/5/6, Fab 14 Phase 3/4 and Fab 15 – that earned ISO 50001 certifications. Other TSMC fabs also implement energy management measures consistent with ISO 50001. Furthermore, TSMC plans to earn the ISO 50001 certification for all fabs from the third party by the end of 2019. In order to establish the healthiest workplace possible, in 2017 TSMC formed a corporate-level health promotion committee, led by vice president management level. The committee members include site directors, safety and health department managers, wellness, HR and legal affairs representatives as well as invited external experts to discuss the potential risks of occupational diseases in semiconductor manufacturing process and develop occupational disease preventive plans. To mitigate health risks to employees, suppliers, and contractors in the workplace, TSMC has adopted rigorous safety and health control measures to prevent occupational injuries and diseases and promote employee safety and mental health. To mitigate the supply chain risk and fulfill corporate social responsibility, TSMC not only does its best to manage ESH but also strives to improve ESH performance of its suppliers and contractors through audits and counselling. TSMC uses priority work management and self-management to govern work performed by contractors. The Company requires contractors performing level-one high-risk operations to complete certification for technicians and to establish their own OHSAS 18001 safety and health management system. This promotion of self-management is aimed at increasing the sense of responsibility of TSMC’s contractors, with the goal of promoting safety awareness and technical improvement for all contractors in the industry. For onsite contractor personnel, TSMC standardizes safety and health training courses and increases their frequency every year, with the aim of improving training effectiveness and safety awareness. To facilitate the program and mitigate onsite operational risks, TSMC also establishes a two-way electronic communication platform that enables instant requirements delivery. TSMC collaborates with suppliers to improve the sustainability of the Company’s supply chain regarding ESH-related issues such as environmental protection, safety and hygiene code compliance, hazardous substance management, fire protection, and natural disaster mitigation. TSMC not only performs ESH audits at its suppliers’ manufacturing sites but also proactively assists them with improving ESH performance. In addition, TSMC also monitors potential climate-change related risks in the supply chain. The Company requests that suppliers conduct carbon emissions inventory and encourages them to implement measures to save energy, reduce carbon emissions, conserve water and reduce waste. In recent years, TSMC suppliers’ performance on pollution control and safety management has made good progress in procedure establishment and implementation. To take a step further, the Company gives greater attention to occupational hygiene issues directly related to labor health. Since 2017, TSMC and the Ministry of Labor Occupational Safety and Health Administration (OHSA) have jointly launched the “Semiconductor Supply Chain Safety and Health Promotion Project.” TSMC invited suppliers to participate in the project. As engaged by OSHA, a professional team has taken on the responsibility of providing consultation through document review and onsite inspection to participating suppliers on management procedures and hardware setup in order to improve the working environment and labor health management. 7.2.1 Environmental Protection Greenhouse Gas (GHG) Emission Reduction TSMC actively participates in the World Semiconductor Council (WSC) in its efforts to set up a global voluntary PFC (perfluorinated compounds) emissions reduction goal for the 2011 to 2020, and has incorporated past experience to develop best practices. The implementation of best practices has been adopted by the WSC as a major element of the 2020 goal. In 2013, in accordance with the “EPA Early Actions for Carbon Credit of Greenhouse Gases Reduction” regulation, TSMC applied for the recognition of greenhouse reduction from 2005 to 2011, and received 5.28 million tons of carbon dioxide credits in 2015. Those carbon credits can be used to offset greenhouse gas emissions of new manufacturing facilities regulated by Environmental Impact Assessment (EIA) Act, which can mitigate climate-change risk and support the Company’s sustainable operations. Since 2005, TSMC has completed the GHG (Greenhouse G as) inventory program and taken a complete inventory of its GHG emissions to gain ISO 14064 certification. The inventory shows that the major direct GHG emissions are PFCs, which are widely used in the semiconductor manufacturing process. The primary indirect GHG emission is electricity consumption. The analysis of the inventory data is not only to meet domestic regulatory reporting requirements but also to serve as a baseline reference for TSMC’s strategy to reduce GHG emissions. In response to the commitment of global climate summit “Paris Agreement” and the Republic of China “Greenhouse Gas Reduction and Management Act” promulgated in 2015, TSMC initiated a cross-functional platform for corporate carbon management in 2016. The three focuses of this platform are legal compliance, carbon emission reduction, and carbon credit acquisition. In addition to participating in official regulatory consultation and communications meetings, TSMC also sets short-, medium- and long-term reduction targets through the “Energy and Carbon Reduction Committee” led by vice president of operations, which are carried out by energy and carbon reduction teams of individual fabs, as the Company continues to strengthen climate mitigation and adaption. Because more than 70% of TSMC’s GHG emissions come from electricity consumption, TSMC always emphasizes energy saving and carbon reduction initiatives. TSMC has not only adopted energy- conserving designs in its manufacturing fabs and offices, but has also continuously improved the energy efficiency of its facilities during operation. These efforts simultaneously reduce both carbon dioxide gas emissions and costs. TSMC has accumulated 900 million kilowatt hours (kWh) power conservation since 2016. Since 2015, TSMC has actively participated in the Republic of China Ministry of Economic Affairs’ voluntary “Green Power Purchasing Program.” for three consecutive years. During this time, TSMC was the largest green power purchaser in Taiwan, purchasing 400 million kilowatt hours (kWh) of green power. Although the Taiwan Power Company has stopped selling green power since 2018, TSMC still aggressively negotiates the purchase of renewable energy with renewable energy suppliers in Taiwan, and is committed to using 20% renewable energy in newly constructed fabs in the future. Since 2018, the overseas manufacturing fabs and offices purchased renewable energy and carbon credits to offset all carbon emissions caused by power consumption. This is a clear manifestation of the Company’s active support of the United Nations Sustainable Development Goals (SDGs). 120 121 Air and Water Pollution Control The Company has installed effective air and water pollution control equipment in each wafer fab to meet regulatory emissions standards. In addition, TSMC maintains backup pollution control systems, including emergency power supplies, to lower the risk of pollutant emissions in the event of equipment failure. TSMC centrally monitors the operations of its air and water pollution control equipment around the clock and treats system effectiveness as an important tracking item to ensure the quality of emitted air and discharged water. To make the most effective use of Taiwan’s limited water resources, all TSMC fabs strive to increase water reclamation rates by adjusting the water usage of manufacturing equipment and improving wastewater reclamation systems. All fabs meet or exceed the process water reclamation rate standard of the Science Park Administration. Some fabs are able to reclaim more than 90% of process water, outperforming most semiconductor fabs around the world. TSMC also makes every effort to reduce non-manufacturing-related water consumption, including water used in air conditioning systems, sanitary facilities, cleaning and landscaping activities and kitchens. TSMC uses an intranet website to collect and measure water recycling volumes company-wide. Since water resources are inherently local, TSMC shares its water saving experiences with other semiconductor companies through the Association of Science-Based Industrial Park to promote water conservation in order to achieve the Science Park’s goals and ensure a long-term balance of supply and demand. In addition, TSMC has committed to use partial reclaimed water in newly constructed fabs in the future in order to further reuse water resource and support the government policy for reclaimed water promotion. Waste Management and Recycling The Company has a designated unit responsible for waste recycling and disposal. To meet the goal of sustainable resource utilization, TSMC’s priorities are: (1) process waste reduction, (2) onsite regeneration and reuse, and (3) offsite recycling. The last option consists of treatment or disposal. To achieve raw material reduction, resource recycling and the goal of zero waste, for example, TSMC built an in-house waste sulfuric acid pre- treatment system, as electronic grade sulfuric acid can be used as a waste water treatment agent after the wafer fabrication process. In order to track waste flow and ensure that all waste is treated or recycled legally and properly, TSMC carefully selects waste disposal and recycling contractors. All recycling contractors must report their recycled product sales monthly. TSMC performs regular onsite audits to check factory status and review the reported data with actual reuse and recycling data to assure recycled product flows downstream properly. TSMC also takes proactive steps to strengthen vendor auditing effectiveness. For example, all waste transportation contractors were asked and agreed to join the “GPS Satellite Fleet” so that all the cleanup transportation routes and abnormal stays for all trucks can be traced. In addition, all waste recycling and treatment vendors have installed closed-circuit TV systems at operating sites to monitor and audit the waste handling. Meanwhile, TSMC also conducts an ongoing survey of recycling product tracking. These actions were taken to ensure lawful and proper waste recycling and treatment. In 2018, TSMC’s fabs in Taiwan achieved a 95% waste recycling rate for the tenth consecutive year, with a landfill rate below 1% for the ninth consecutive year. Also during the year, TSMC amended its articles of incorporation to add four business items for chemical materials to ensure waste flow and reduce risks of improper waste disposal by commissioned agencies. TSMC also set up onsite resource activation facilities to regenerate waste resources produced from process activities into products to be used onsite or to sell to other factories. As a result, TSMC has become a leading company in waste resources regeneration. In 2018, TSMC extended its capacity to regenerate used copper sulfate into copper tubes and took the further step of collaborating with raw material suppliers to produce electronic grade copper anodes using copper tubes regenerated in the TSMC manufacturing process. In addition, in order to achieve the target of “reclaiming all ammonia”, TSMC has built the first ammonium sulfate drying system, which successfully converted biologically toxic ammonia wastewater into industrial grade ammonium sulfate as valuable recycled products for sale. Environmental Accounting The purpose of TSMC’s environmental accounting system is to identify and calculate environmental costs for internal management. At the same time, the Company can also evaluate the savings or economic benefits of environmental protection programs so as to promote economically-effective programs. While environmental expenses are expected to continue growing, environmental accounting can help TSMC manage these costs more effectively. TSMC’s environmental accounting measures various environmental costs, establishes independent environmental account codes, and provides these to all units for use in annual budgeting. The Company’s economic benefit evaluation calculates cost savings for reduction of energy, water or waste and benefits from waste recycling in accordance with its environmental protection programs. The environmental benefits disclosed in this report include real income from projects such as waste recycling and savings from major environmental projects. In 2018, 667 environmental projects of TSMC fabs were completed and the total benefits, including waste recycling, were more than NT$1,500 million. 2018 Environmental Cost of TSMC Fabs in Taiwan Unit: NT$ thousands Classification Description 1. Direct Costs for Reducing Environmental Impact (1) Pollution Control Fees for air pollution control, water pollution control, and others (2) Resource Conservation Costs for resource (e.g. water) conservation (3) Industrial Waste Disposal and Recycling Costs for waste treatment (including recycling, incineration and landfill) 2. Indirect Cost for Reducing Environmental Impact (Environmental Managerial Costs) (1) Cost of training (2) Environmental management system and certification expenditures (3) Environmental impact measurement and monitoring fees (4) Environmental protection product costs (5) Environmental protection organization fees 3. Other Environmental Costs Total (1) Costs for soil decontamination and natural environment remediation (2) Environmental damage insurance fees and environmental taxes and expenses (3) Costs related to environmental settlement, compensations, penalties and lawsuits Expense Investment 5,556,000 - 2,266,000 265,000 3,881,000 6,042,000 - 158,000 - - 8,087,000 10,081,000 2018 Environmental Efficiency of TSMC Fabs in Taiwan Unit: NT$ thousands Category Description 1. Cost Savings of Environmental Protection Projects Energy savings: completed 433 projects Water savings: completed 11 projects Waste reduction: completed 223 projects 2. Real Income from Industrial Waste Recycling Recycling of used chemicals, wafers, sputter targets, batteries, lamps, packaging materials, paper cardboard, metals, plastics, and other waste Total Efficiency 750,000 16,300 354,000 388,405 1,508,705 Green Building and Green Factory Since 2006, TSMC has adopted standards from both the Taiwan “Green Building” and the evaluation of the U.S. Green Building Council – Leadership in Energy and Environmental Design (LEED) for new fab and office building designs to achieve better energy and resource efficiency than conventional designs. During this time, TSMC has also continued to upgrade existing office buildings to comply with the LEED standard each year. From 2008 to 2018, 30 of TSMC’s fabs and office buildings have achieved LEED certifications (3 platinum and 27 gold). Meanwhile, TSMC also received 5 Taiwan Intelligent Building diamond-class certifications and 21 Taiwan EEWH (ecology, energy saving, waste reduction and health) certifications (18 diamond, 2 gold and 1 silver). TSMC believes that more manufacturing companies should convert their facilities into green factories to improve the environment and lower construction costs. Therefore, the Company freely shares its practical experience with industry, government and academia. As of the end of 2018, 12,545 visitors from more than 330 different industrial, government, academic and general community groups had contacted TSMC to have communication for the Company’s green building technology and practical experiences. Since 2009, TSMC has led the industry in support of the Taiwan government’s “Green Factory Label” standard which includes “Clean Production Evaluation System” and “Factory Green Building Evaluation System.” TSMC received Taiwan’s first “Green Factory Label” and 12 labels in total as of the end of 2018, and was the most awarded company in Taiwan. 122 123 7.2.2 Sustainable Products TSMC collaborates with its upstream material and equipment suppliers, design ecosystem partners and downstream assembly and testing service providers to minimize environmental impact. Reducing the resources and energy consumed for each unit of production allows the Company to provide customers with more advanced, power efficient and ecologically sound products, such as ultra-low power chips for narrowband IoT, low Vdd (low operating voltage) chips for wearables and IoT devices, low-power chips for mobile devices, high-efficiency LED driver chips for flat panel display backlighting, indoor/outdoor solid state LED lighting, “Energy Star” certified low standby AC-DC adaptors chips, high-efficiency DC brushless motor chips, electric vehicle chips, and low-power server chips, etc. By leveraging TSMC’s superior energy-efficient technologies, these chips support sustainable city infrastructure, greener vehicles, smart grids, more energy efficient servers and data centers, and other applications. In addition to helping customers design low-power, high performance products to reduce resource consumption over the product’s life cycle, TSMC’s green manufacturing practices provide further green value to customers and other stakeholders. TSMC-manufactured ICs are used in a broad variety of applications covering various segments of the computer, communications, consumer, industrial, electric vehicle, server and data center, and other electronics markets. Through TSMC’s manufacturing technologies, customers’ designs are realized and their products are incorporated into people’s lives. These chips, therefore, make significant contributions to the progress of modern society. TSMC works hard to achieve profitable growth while providing products that add environmental and social value. Listed below are several examples of how TSMC-manufactured products significantly contribute to the environment and society. Environmental Contribution by TSMC Foundry Services 1. Continue to Drive Technology to Lower Power Consumption and Save Resources • To improve sustainability, TSMC continues to drive the development of advanced semiconductor process technologies to support customer designs that result in the most advanced, energy-saving and environmentally friendly products. In each new technology generation, circuitry line widths shrink, making transistors smaller and reducing product power consumption for completing the same tasks or achieving the same level of performance. • As TSMC quickly ramped up its 28nm and newer generation technologies, the combined wafer revenue contribution grew significantly from 12% in 2012 to 63% in 2018. TSMC’s objective is to continue R&D investments and to increase the wafer revenue contribution in 28nm and beyond technologies, helping the Company achieve both profitable growth and sustainability. TSMC Wafer Revenue Contribution from 28nm and Beyond Technologies 2014 42% 2015 48% 2016 54% 2017 58% 2018 63% Chip Die Size Cross-Technology Comparison Die size is shrinking as line width shrinks 1 0.48 0.25 0.11 0.063 0.047 0.035 55nm 40nm 28nm 16FFC/ 12FFC 10nm 7nm 5nm Note: The logic chip/SRAM/IO (Input/Output) ratio, which affects die size and power consumption, was re-aligned. Chip Total Power Consumption Cross-Technology Comparison More power is saved as line width shrinks 1 0.6 0.3 0.07 0.056 0.034 0.022 N55LP (1.2V) N40LP (1.1V) N28HPM (0.9V) 16FFC/ 12FFC (0.8V) 10nm (0.75V) 7nm (0.75V) 5nm (0.75V) Note: The logic chip/SRAM/IO (Input/Output) ratio, which affects die size and power consumption, was re-aligned. and raw materials consumed for per unit in manufacturing. In addition, the Company continuously provides process simplification and new design methodology based on its manufacturing excellence to help customers reduce design and process waste so as to produce more advanced, energy- saving and environmentally-friendly products. For total energy savings and benefits realized in 2018 through TSMC’s green manufacturing, see Environmental Accounting on page 122 in this annual report. Social Contribution by TSMC Foundry Services 1. Unleash Customers’ Mobile and Wireless Chip Innovations that Enhance Mobility and Convenience • The rapid growth of smartphones and tablets in recent years reflects strong demand for mobile devices, which, in turn, offer remarkable convenience. TSMC contributes significant value to these devices in the following ways: (1) new TSMC process technologies help chips achieve faster computing speed in smaller die areas, leading to smaller form factors for these electronic devices. In addition, TSMC SoC technology integrates more functions into one chip, reducing the total number of chips in electronic devices, again resulting in a smaller system form factor; (2) new TSMC process technologies also help chips reduce power consumption, allowing mobile devices to be used for a longer period of time; and (3) TSMC helps spread the growth of more convenient wireless connectivity such as 3G/4G and WLAN/Bluetooth, meaning people can communicate more efficiently and “work anytime and anywhere,” significantly increasing the mobility of modern society. • Mobile computing related segments represented 46% of TSMC wafer revenue in 2018 and included products such as baseband, RF transceivers, application processors (AP), wireless local area networks (WLAN), CMOS image sensors, near field communication (NFC), Bluetooth, and global positioning systems (GPS) among others. TSMC Wafer Revenue Contribution from Mobile Computing Related Products 2014 48% 2015 51% 2016 52% 2017 50% 2018 46% 2. Provide Customers Leading Power Management IC Process with the Highest Efficiency • TSMC’s leading manufacturing technology helps customers design and produce green products. Power Management ICs, the key components that supply and regulate power to all other IC components within electronic devices, are the most notable green IC products. TSMC helps customers produce industry-leading power management chips with more stable and efficient power supplies and lower energy consumption. • In 2018, more than 2.6 million 8-inch equivalent wafers using TSMC’s HV/Power technologies were shipped to customers. Power Management ICs manufactured by TSMC are widely used in computer, communication, consumer, electric vehicle, server and data center, and other systems around the globe. HV/Power Technologies Shipments Unit: 8-inch equivalent wafer 2014 2015 2016 2017 2018 >1,800K >2,000K >2,100K >2,500K >2,600K 3. Drive Industry-leading, Comprehensive Ultra-low Power (ULP) Technology Platform • To meet low-power consumption requirements for the wearable and IoT markets, TSMC continues to invest in expanding and enhancing its ultra-low power processes. TSMC provides industry’s leading and comprehensive ultra- low power (ULP) technology platform to support innovations for a wide range of IoT applications that demand increased computing in smart edge devices, including smart speakers, smart cameras, wearables, and various smart appliances. TSMC’s industry-leading offerings, including 55nm ULP, 40nm ULP, 28nm ULP, 22nm ULP/ULL (ultra-low leakage), have been widely adopted by various IoT customers. TSMC further extends its low Vdd (low operating voltage) offerings for extremely low power applications. In 2018, TSMC continued to develop 22nm low Vdd solutions to enable more advanced IoT products, including IoT WiFi and BLE (Bluetooth low energy) connectivity products. 4. Develop Greener Manufacturing to Lower Energy Consumption • TSMC continues to develop more advanced and efficient technologies to reduce energy/resource consumption and pollution per unit during the manufacturing process as well as power consumption and pollution during product use. In each new technology generation, circuitry line widths shrink, making circuits smaller and lowering the energy 124 125 2. Unleash Customers’ CIS (CMOS image sensor) and MEMS (Micro-electromechanical Systems) Innovations that Enhance Human Health and Safety • TSMC continues to enhance or develop innovative CIS and MEMS technologies, which are extended from traditional sensing to machine sensing, such as NIR (near infrared), ultrasound, and micro-actuators. These new technologies can support more product applications, ranging from smartphones and consumer electronics to automotive and health services. By combining advantages of traditional sensing and machine sensing, new products using TSMC CIS and MEMS technologies can be made smaller and faster, consume less power, and greatly enhance human convenience, health, and safety. For instance, TSMC customers’ CIS and MEMS products are used in a number of advanced medical treatments as well as in preventative health care applications. Examples include early warning systems to minimize the injury from falls for the elderly, systems to detect physiological changes, car safety systems and other applications that significantly improve human health and safety. 7.2.3 Safety and Health Safety and Health Management TSMC’s safety and health management is built on the framework of the OHSAS 18001 system and adheres to the management approach of “Plan, Do, Check, Act” to prevent accidents, promote employee safety and health and protect Company assets. All TSMC fabs in Taiwan have also received TOSHMS (Taiwan Occupational Safety and Health Management System) certification. Besides accident prevention, TSMC has established emergency response procedures to protect employees and contractors if a disaster should occur, as well as to prevent and/or reduce the negative impact on society and the environment. TSMC continually communicates with its suppliers to ensure that potential risk in the operation of production equipment is minimized, and rigorously follows safety control procedures when installing production equipment. The Company places stringent controls on high-risk operations and also evaluates the seismic tolerance of its facilities and equipment to reduce the risk of earthquake damage. For epidemics, TSMC has established corporate-level prevention committees and procedures for emergency response to outbreaks of infectious diseases. Working Environment and Employee Safety and Health Protection TSMC’s ESH policy is focused on establishing a safe working environment, preventing occupational injury and illness, keeping employees healthy, enhancing every employee’s awareness and sense of accountability to ESH, and building an ESH culture. TSMC safety and health management operations apply to: • Equipment Safety and Health Management In addition to meeting regulatory requirements and internal standards, as well as mitigating ESH-related risks when building or upgrading facilities, TSMC also maintains procedures governing new equipment and raw materials, requires safety approvals for bringing new tools online, updates safety rules, and implements seismic protection and other safety measures. TSMC requires that all new tools meet SEMI-S8 requirements and that appropriate supplementary control measures be taken to reduce ergonomic risk. Moreover, TSMC endeavors to automate 300mm front-opening unified pod (FOUP) transportation to prevent accumulative physical damage caused by repetitive manual handling of 300mm FOUPs. TSMC 300mm fabs have completed automatic transportation control. • Environmental, Safety and Health Evaluation of New Tools and New Chemical Substances As a technology leader in the global semiconductor industry, TSMC operates more and more diversified process tools and introduces new chemicals in the R&D stage. Before using those new tools and new chemicals, they are reviewed carefully by the New Tools and New Chemical Review Committee. The purpose is to ensure that new tools are compliant with the semiconductor industry’s safety standards (such as SEMI S2) and that new chemicals’ environmental, safety and health concerns can be well controlled, including engineering controls, application of personal protection equipment, and operational safety training during storage, transportation, usage and disposal. • General Safety Management, Training and Audit All TSMC manufacturing facilities hold environmental, safety and health committee meetings on a monthly basis. TSMC has adopted multiple preventive measures such as controls on high- risk work, contractor management, chemical safety management, personal protective equipment requirements, and safety audit management. In addition, the Company maintains detailed disaster response procedures and performs regular drills designed to minimize harm to employees and property, as well as the impact on society and the environment in the event of a disaster. • Working Environment Hazardous Factors Management TSMC conducts workplace hazard assessments to provide a comfortable and safe workplace to employees. TSMC also educates and requires employees to use personal protective equipment (PPE) to prevent hazardous exposures. TSMC performs semi-annual workplace environment assessments of physical and chemical hazards, including CO2 concentration, illumination, noise, and hazardous chemical substances regulated by local laws. In addition, the Company has performed exposure assessments and has used hierarchy management control for chemicals with potential health hazards since 2015. If abnormal measurements or events happen or an exposure assessment indicates there is an adverse health effect for employees, ESH professionals immediately conduct onsite observation and interventions to reduce the exposure to acceptable levels. • Health Promotion Program In order to establish the healthiest possible workplace and prevent from occurrence of occupational disease, TSMC formed a corporate-level committee to execute health promotion programs covering three scopes: (1) Exposure and health risk assessment: develop an exposure assessment system to identify high health risk employees. (2) Hazardous training and notification: use standardized training materials for employees and contractors in all TSMC fabs. Inform them of the health risks and prevention measures at the workplace before working or providing any services there. (3) Strengthen management of high health concerned chemicals: sample raw materials used in the manufacturing process to confirm that they do not contain any carcinogenic, mutagenic or toxic-reproductive materials. Inform suppliers that all materials they provide to TSMC must comply with applicable laws including clear disclosure of any hazardous substances. • Emergency Response The planning and execution of an effective emergency response should identify potential high-risk events via risk assessment and be prepared for various scenarios. It should focus on continuous improvement and practice drills covering all potentially serious events. TSMC’s emergency response plans include procedures for rapid-response crisis management and disaster recovery to potential incidents. All TSMC fabs conduct major annual emergency response exercises and evacuation drills. TSMC’s onsite service contractors are required to participate in emergency response planning and exercises to ensure cooperation in handling accidents and to effectively minimize any damage caused by disasters. At least every two years, each fab director invites fab management and support functions to participate in crisis management drills for potentially high-risk events such as earthquake, fire and flood (Tainan site). Beginning in 2018, TSMC has conducted complex type accident emergency response drills which include earthquakes, fire and chemical spills scenarios simultaneously to insure emergency response capability can handle a real disaster if it happened and keep losses to a minimum. In addition to the regular emergency response drills held by engineering and facilities departments each quarter, the Company’s laboratory, canteen, dormitory, and shuttle bus personnel also hold emergency response drills to prepare for events such as earthquakes, chemical spills, ammonia release, fires and traffic accidents. • Emerging Infectious Disease Response TSMC has a dedicated corporate ESH organization to monitor emerging infectious diseases around the world, to assess any potential impact on the workplace, and to provide an appropriate strategic response plan. In previous outbreaks (such as SARS in 2003 and the H1N1 influenza outbreak in 2009), TSMC convened the corporate influenza response committee to develop the Company’s strategies. These strategies included educating employees in prevention and response, publishing guidelines for managers, establishing guidelines for employee sick leave due to flu, and installing alcohol-based hand sanitizers at appropriate locations. The Committee also monitors the status of employee leave due to illness and, at the same time, develops a continuity plan to address manpower shortages and minimize business impact. • Employee Physical and Mental Health Enhancement TSMC believes that employees’ physical and mental health is not only fundamental to maintaining normal business operations but also part of a corporation’s responsibility. To protect and promote employee physical and mental health, TSMC fosters collaboration among the onsite industrial safety and environmental protection department, onsite medical personnel of the health center, and physicians of occupational medicine. TSMC strives to reduce cerebral and cardiovascular disease that might be induced or aggravated by overwork, night work or shift work. The Company conducts maternal health protection programs and prevention 126 127 of cumulative trauma disorders as well. TSMC devotes significant resources to mental health awareness and related activities, which not only protect employees from hazards at work but also proactively promote employee health in general. In 2018, through planned personal health management, (1) 809 female employees participated in the maternal health program, the completion rate was 100%. 808 of them were at the first degree risk (there was no harm to the mother, infant, and baby). Only 1 employee, who were was unstable at the late stage of pregnancy, were at was reorganized into the second degree risk (possible harm to the mother, infant, and baby), we assisted her adjusted job content to and she smoothly give gave the birth afterward. (2) 306 employees were identified from annual health examination to be in a middle to high risk group for cerebral and cardiovascular diseases, we provide them health education, medical assistance, and 13 of them had been restricted their overtime to reduce risk. (3) 125 employees were in a high risk group for cumulative trauma disorders, 1 of them were assisted to adjust their job content to avoid possible risk from work. For seven consecutive years, TSMC has held a series of physical and mental health activities. During this time, 1,000 employees have joined the weight-control program, losing a total of 2,888 kilograms collectively and 271 attendees completed the stair climbing program to improve quality of life. Those employees who had joined both activities of weight-control and stair climbing showed better improvement in weight, waist circumference, liver function and cholesterol levels. Supplier and Contractor Management • Management Aspect As a means of enhancing supply chain management, TSMC is committed to communicating with and encouraging its contractors and suppliers to improve their quality, cost effectiveness, delivery performance and sustainability on environmental protection, safety and health. Through regular communication with senior managers, site audits and experience sharing, TSMC collaborates with major suppliers and contractors to enhance partnerships and ensure continual improvement for better performance and increased joint contributions to society. As noted above, contractors performing high-risk activities must lay out clearly defined safety precautions and preventative measures. In addition, contractors working on high-risk engineering projects must establish OHSAS 18001 or ISO 45001 systems and the workers must successfully complete work skill training. • Supply Chain Sustainability TSMC works with suppliers in several fields of sustainable development, such as greening the supply chain, carbon management for climate change, mitigation of fire risk, ESH management and business continuity plans in the event of a natural disaster. Since becoming a full member of the Responsible Business Alliance (RBA) in 2015, TSMC has completed the adoption of the RBA code of conduct throughout the Company by performing self-assessments at its facilities worldwide and reviewing policies and procedures in the areas of labor, health and safety, environment, ethics, and management systems. To enhance supply chain sustainability and streamline risk management, TSMC is committed to collaborating with its suppliers to maintain full compliance with Taiwan’s environment, safety, health and fire protection regulations. In 2018, TSMC developed a supplier’s code of conduct, which affirmed basic labor rights and standards for health, safety, environment, ethics and management systems. TSMC works with suppliers to inspect the risk and performance on the aspects of economy, environment, and society and make continuous improvement. The Company has upgraded suppliers’ performance of sustainability through experience sharing and training and hopes to establish a world-class semiconductor supply chain that exceeds international standards and serves as a global benchmark. TSMC is subject to the U.S. Securities & Exchange Commission (SEC) disclosure rule on conflict minerals released under Rule 13p-1 of the U.S. Securities Exchange Act of 1934. As a recognized global leader in the high-tech supply chain, the Company acknowledges its corporate social responsibility to strive to procure conflict-free minerals in an effort to recognize humanitarian and ethical social principles that protect the dignity of all people. To this end, TSMC has implemented a series of compliance safeguards in accordance with leading industry practices such as adopting the due diligence framework in the OECD’s Model Supply Chain Policy for a Responsible Global Supply Chain of Minerals from Conflict-Affected and High Risk Areas issued in 2011. TSMC is one of the strongest supporters of the Responsible Business Alliance and the Global e-Sustainability Initiative (GeSI), which will help the Company’s suppliers source conflict-free minerals through their jointly developed Responsible Minerals Initiative (RMI). Since 2011, TSMC has asked its suppliers to disclose information and make timely updates on smelters and mines. The Company encourages suppliers to source minerals from facilities or smelters that have received a “conflict-free” designation by a recognized industry group (such as the RBA) and also requires those who have not received such designation to become compliant with Responsible Minerals Initiative or an equivalent third-party audit program. TSMC requires the use of tantalum, tin, tungsten and gold in its products that are conflict-free. TSMC will continue to conduct the supplier survey annually and require suppliers to improve and expand their disclosure to fulfill regulatory and customer requirements. For further information, see the Company’s Form SD filed with the U.S. SEC. (https:// www.tsmc.com/english/investorRelations/sec_filings.htm) 7.3 TSMC Education and Culture Foundation The TSMC Education and Culture Foundation, led by TSMC board director F.C. Tseng, who serves as the foundation’s chairman, was established in 1998 to make CSR contributions. In 2018, to fulfill TSMC’s social responsibility, this foundation contributed over NT$76.81 million to its three engagements: caring about the educational disadvantaged, supporting youth with multiple educational platforms, and promoting arts and culture. Collaboration with Educational Partners Narrowing Educational Gap between Cities and Rural Regions Narrowing the educational gap between cities and rural regions is a major focus of the TSMC Education and Culture Foundation and the reason for its collaborations with several public and private educational institutions. In 2018, the foundation sponsored nearly NT$13 million to commit to multiple educational programs in response to the needs of different communities. To facilitate a reading culture in rural areas, the TSMC Education and Culture Foundation became the initial philanthropy partner of Hope Reading of the CommonWealth Foundation, and has been donating 100 books to each of 200 junior high schools and primary schools in Taiwan’s remote townships every year since 2004. As a result, more than 280,000 children have benefited from over 250,000 donated books. Adapting to the digital era, beginning in 2016 the foundation further sponsored Hope Reading 2.0 with NT$6 million in three years, to encourage reading by e-learning systems. As of the end of the fall semester 2018, the average reading quantity of participant students has grown from 19 to 90 per year. To help economically disadvantaged students lighten their burden and enable them to focus on their studies, the TSMC Education and Culture Foundation sponsors the Rising Sun Plan of National Tsing Hua University and the Sunflower Plan of National Central University, relaxing the admissions requirements and providing complete four-year scholarships for talented students with financial need. In 2018, the foundation provided 37 students with NT$3.02 million in scholarships. To extend care to the educationally disadvantaged, the TSMC Education and Culture Foundation has continuously sponsored Junyi Academy, Teach for Taiwan and the Boyo Social Welfare Foundation, providing free and quality digital learning tools and tutors, and aiding enthusiastic young teachers who will be deployed to rural schools to make up for teacher shortages. Building Educational Platforms Encouraging Youth to Reach Their Dreams To encourage young people to explore and expand their interests and visions, in 2018 the TSMC Education and Culture Foundation contributed over NT$40 million to hold activities both in sciences and humanities as well as communication platforms, providing youth with opportunities to develop multiple extracurricular experiences. In 2018, the TSMC Dream Builders of Youth Project initiate the “issue-specific focus group” to encourage the younger generation to place emphasis on social issues. To this end, the TSMC Education and Culture Foundation collaborated on the pilot project of Aesthetics of Sea Waste with the Department of Arts and Design of National Tsing Hua University. This project invited the students to create wearable art works out of the litter they had collected at the beach, and showcased their works on a fashion runway at the East Hsinchu City Gate and at the TSMC Sports Day, highlighting this environmental theme. In 2018 the Dream Builders of Youth Project attracted the participation of young students in 67 teams from Taoyuan, Hsinchu and Miaoli; seven teams were awarded prizes totaling NT$3 million to help them realize their dreams. The TSMC Education and Culture Foundation has held the TSMC Youth Literature Award and the TSMC Youth Calligraphy and Seal-Carving Competition since 2004 and 2008, respectively, to encourage young people to develop proficiency in literature and calligraphy. For the Literature Award, a total of 2,078 works were submitted in 2018. Marking its 15th anniversary, the foundation invited young writers who had won the award before to share their literary experiences at university campuses. For the Youth Calligraphy and Seal-Carving Competition, the foundation expanded the “Scribes’ Group,” and the contest and workshops attracted 809 attendees in total. Celebrating the 200th anniversary of the original publication of Mary Shelley’s novel Frankenstein, the 2018 Cup had a science fiction theme to let 540 students from K9 to K12 researching the scientific principles behind science fiction in both novels and movies. In the competition competitors must digest scientific knowledge and translate it into intelligible introductory articles and speeches in order to improve their science presentation skills. In 2018, the TSMC Education and Culture Foundation also 128 129 continued to support Wu Chien-Shiung Science Camp, Wu Ta-Yu Science Camp and Madame Curie Senior High School Chemistry Camps. The camps attracted 386 senior high school teachers and students and gave them the opportunity to meet and learn from world-class scientists and Nobel Prize masters with the aim of inspiring the students and helping them realize their potential. Promoting Arts and Culture Presenting Chinese Exquisite Theatric Beauty The TSMC Education and Culture Foundation is devoted to promoting arts and culture. In 2018, the foundation contributed over NT$20 million to organizing superb artistic performances of Chinese opera, music, children’s program and literature to enrich the community residents’ spiritual life and spotlight prominent Taiwanese artistic groups. The 2018 TSMC Hsin-Chu Arts Festival centered on a cinematic theme, Behind the Scenes, Beyond Imagination, and attracted more than 13,000 people to experience cinema’s irresistible charms. The festival’s program included: a classical music concert presented by live orchestra, a concert and theater tailored for children, a series of movie lectures on pioneering fantasy worlds behind the scenes, and the modern Peking Opera as a fusion of Eastern and Western aestheticism. All in all, the 2018 Hsin-Chu Arts Festival arranged for 57 distinct performances, presenting a spiritual feast for community residents. The TSMC Education and Culture Foundation has continuously sponsored local artistic groups. In 2018, the foundation sponsored Chen Xi-Huang, the master of Taiwanese Puppetry, Huang Yi, a stellar young dancer, and The Legacy of Chen Uen – Art Life and Philosophy, the exhibition at the National Palace Museum. The Taiwanese master Chen Uen, who passed away in 2017, had uplifted the comics to arts. He was the first comics artist whose work was displayed at the National Palace Museum. The exhibition featured Chen Uen’s comics manuscript, as lifelong creation, striking a significant chord with more 100,000 attendees. The foundation also arranged exhibition tours for junior high school students in rural areas to expand their artistic visions. 7.4 TSMC Charity Foundation Since it was established in 2017, the TSMC Charity Foundation has focused on four main areas: taking care of elders, promoting filial piety, caring for the disadvantaged and protecting the environment. Under the leadership of Chairperson Sophie Chang, the Foundation is known to pay close attention to social issues with heart, care for disadvantaged groups with love, and to cooperate with internal and external stakeholders to achieve the mission of making a better society. The Charity Foundation continues to devote to charity and launched several new projects in 2018 to expand the service scope: • Taking care of elders: Cooperating with the Networking of Love partners, the Foundation integrated medical resources in Taiwan in order to provide elders who live alone with more accessible medical resources and services to enhance their health and well-being. In 2018, the Foundation helped Fengyuan Hospital install a remote intelligence medical care system, and helped Miaoli day-care center install intelligence system to increase medical service effectiveness. Currently partners in Networking of Love include: Taipei Veterans General Hospital, Old Five Old Foundation, Miaoli General Hospital, Feng Yuan Hospital, China Medical University Hospital, Lin Welfare and Charity Foundation, Tainan Taiwan Puli Care Association, Sin-Lau Medical Foundation, Jianan Psychiatric Center, Hengchun Tourism Hospital, Mennonite Christian Hospital and its Charity Foundation, and Fooyin University. • Promoting filial piety: The Foundation strives to increase awareness of Eastern culture filial piety in the younger generation to reduce potential social risks in an aged society. In 2018, TSMC Charity Foundation collaborated with K-12 Education Administration, Ministry of Education to publish teaching materials on filial piety to 2,660 elementary schools. The Ministry of Education will also start a filial piety culture promotion program in Taiwan. The Foundation also invited five companies in Hsinchu Science Park to establish the first group of filial piety volunteers. • Caring for the disadvantaged: Focusing on disadvantaged groups’ life and education, the Foundation provides goods and medical resources to them, and ensures they can have inclusive and equitable education resources. This will also go a long way towards achieving the United Nations’ goal to “End poverty in all its forms.” In 2018, the Foundation launched the “Sending Love” program, visited and identified cases that required urgent financial aid and helped them improve their quality of life through fundraising from TSMC employees and external donations. Including filial piety volunteers, which was first established in 2018, TSMC’s volunteers in this effort now number more than 10,200. 7.5 TSMC i-Charity “TSMC i-Charity” is an interactive online platform launched in 2014. The Company’s intranet provides a channel for employees to propose caring projects, share results, provide feedback and suggestions and participate in philanthropic events such as online donation directly and in a timely manner to give back to society. In 2018, more than 19,000 attendees participated in the following projects, as over NT$30 million in contributions were received: • Hualien Earthquake Emergency Relief Project • Junyi Academy Platform and Teach for Taiwan From 2014 to 2018, TSMC i-Charity platform has received over NT$99 million in contributions. TSMC will maintain its commitment to society and encourage employees to join in efforts to care for and give back to society in all ways. • Protecting the environment: Promoting environmental education and knowledge to increase people’s awareness of the importance of prevention and adaptation regarding climate change. In 2018 the “Cherish Food” program was launched, in cooperation with CHIMEI FROZEN FOOD, off-grade products (food with disqualified packaging) are regularly donated to TSMC’s partner organizations that look after disadvantaged groups in order to reduce food waste and protect the environment. TSMC’s ecology volunteers continuously provide ecology tours in Hsinchu Fab 12B, Taichung Fab 15, and Tainan Jacana Ecology Education Park. TSMC’s professional energy-saving volunteers assist schools at all levels on energy-saving assessment and improvement. The service locations cover: Taipei, Hsinchu, Taichung, Tainan and Kaohsiung such areas. In February 2018, an earthquake with a magnitude of 6.4 on the Richter scale occurred in Hualien. The TSMC Charity Foundation visited the site at the first opportunity and dispatched manpower, donations and materials to support affected households in returning to normal life. Specifically, the Foundation: (1) Initiated a fundraising plan and donated around NT$58.44 million. At the same time, water trucks were assigned to assist the affected area. (2) Assisted the reconstruction of over 400 households of disadvantaged groups and elders who live alone. The Foundation also held a camp in the local area to help children regain courage and confidence. (3) Organized a Hualien sightseeing train project with TSMC, the TSMC Employee Welfare Committee and the Taiwan Railways Administration in order to revitalize Hualien’s local economy. More than 7,500 people participated in this project. At the same time, TSMC employees started Hualien products group buying activities, with a total contribution of more than NT$3.08 million. This disaster relief operation was a result of the care and commitment from internal and external stakeholders such as TSMC employees, TSMC, social individuals and other companies. The TSMC Charity Foundation will continue to pay close attention to local emergency relief needs and provide immediate assistance when required. 130 131 7.6 Social Responsibility Implementation Status as Required by the Taiwan Financial Supervisory Commission Assessment Item Implementation Status Yes No Summary 1. Implementation of Corporate Governance V (1) Does the Company have a corporate social responsibility policy and evaluate (1) Please refer to “7. Corporate Social Responsibility” on pages 115-132 of its implementation? this Annual Report. (2) Does the Company hold regular CSR training? (2) Please refer to “3.5 Code of Ethics and Business Conduct” on pages 46- Non-implementation and Its Reason(s) None (3) Does the Company have a dedicated (or ad-hoc) CSR organization with Board of Directors authorization for senior management, which reports to the Board of Directors? (4) Does the Company set a reasonable compensation policy, integrate employee appraisal with CSR policy, and set clear and effective incentive and disciplinary policies? 2. Environmentally Sustainable Development (1) Is the Company committed to improving resource efficiency and to the use of renewable materials with low environmental impact? (2) Has the Company set an Environmental management system designed to industry characteristics? (3) Does the Company track the impact of climate change on operations, carry out greenhouse gas inventories, and set energy conservation and greenhouse gas reduction strategy 3. Promotion of Social Welfare V V 50 of this Annual Report (3) Please refer to “7. Corporate Social Responsibility” on pages 115-132 of this Annual Report. (4) Social responsibility is regarded as an integral part of corporate governance by TSMC. TSMC's fair compensation policy is set with consideration of the goals of the Company's corporate governance and operation; corporate social responsibility is included as part of its indices. For further details, please refer to “5.5 Human Capital” on pages 82-87 of this Annual Report. Please refer to “7.2.1 Environmental Protection” on pages 121-123 of this Annual Report. None None (1) Does the Company set policies and procedures in compliance with regulations (1) Please refer to “5.5 Human Capital” on pages 82-87 of this Annual and internationally recognized human rights principles? Report. (2) Has the Company established appropriately managed employee appeal (2) Please refer to “5.5 Human Capital” on pages 82-87 of this Annual procedures? Report. (3) Does the Company provide employees with a safe and healthy working (3) Please refer to “7.2.3 Safety and Health” on pages 126-129 of this environment, with regular safety and health training? Annual Report. (4) Has the Company established a mechanism for regular communication with employees and use reasonable measures to notify employees of operational changes which may cause significant impact to employees? (4) Please refer to “5.5 Human Capital” on pages 82-87 of this Annual Report. (5) Has the Company established effective career development training plans? (5) Please refer to “5.5 Human Capital” on pages 82-87 of this Annual (6) Has the Company set polices and consumer appeal procedures in its R&D, (6) Not applicable as TSMC is not an end product manufacturer. purchasing, production, operations, and service processes? Report. (7) Does the Company follow regulations and international standards in the (7) Not applicable as TSMC is not an end product manufacturer. marketing and labelling of its products and services? (8) Does the company evaluate environmental and social track records before (8) Please refer to “Supplier and Contractor Management” on page 128 of engaging with potential suppliers? this Annual Report. (9) Does the Company’s contracts with major suppliers include termination clauses if they violate CSR policy and cause significant environmental and social impact? (9) Please refer to “Risks Associated with Purchase Concentration” in 6.3.3 Operational Risks of this Annual Report. 4. Enhanced Information Disclosure Does the Company disclose relevant and reliable CSR information on its website and the Taiwan Stock Exchange website? V TSMC has published a “Corporate Social Responsibility Report” since 2008, and discloses this on the Company’s website (https://www.tsmc.com/ english/csr/index.htm). None 5. If the company has established its corporate social responsibility code of practice according to “Listed Companies Corporate Social Responsibility Code of Practice,” please describe the operational status and differences. TSMC follows the Corporate Social Responsibility Policy set by the Chairman, Dr. Mark Liu. For corporate social responsibility operational status, please refer to “7. Corporate Social Responsibility” on pages 115- 132 of this annual report and corporate social responsibility related information in our website: https://www.tsmc.com/english/csr/index.htm 6. Other important information to facilitate better understanding of the company’s implementation of corporate social responsibility: Please refer to TSMC’s website for its corporate social responsibility implementation status: https://www.tsmc.com/english/csr/index.htm 7. Other information regarding “Corporate Responsibility Report” which is verified by certifying bodies: TSMC’s Corporate Social Responsibility Report is in accordance with the GRI Standards and verified by certifying bodies. 132 133 
Subsidiary Information and Other Special Notes 8.1 Subsidiaries 8.1.1 TSMC Subsidiaries Chart TSMC North America Shareholding: 100% TSMC Europe B.V. Shareholding: 100% TSMC Japan Limited Shareholding: 100% TSMC Korea Limited Shareholding: 100% TSMC Partners, Ltd. Shareholding: 100% TSMC Global Ltd. Shareholding: 100% TSMC China Company Limited Shareholding: 100% TSMC Nanjing Company Limited Shareholding: 100% VisEra Technologies Company Ltd. Shareholding: 87% VentureTech Alliance Fund II, L.P. Shareholding: 98% Taiwan Semiconductor Manufacturing Company Limited TSMC Development, Inc. Shareholding: 100% WaferTech, LLC Shareholding: 100% TSMC Technology, Inc. Shareholding: 100% TSMC Design Technology Canada Inc. Shareholding: 100% InveStar Semiconductor Development Fund, Inc. (Note) Shareholding: 97% InveStar Semiconductor Development Fund, Inc. (II) LDC. (Note) Shareholding: 97% VentureTech Alliance Fund III, L.P. Shareholding: 98% Growth Fund Limited Shareholding: 100% TSMC Solar Europe GmbH (Note) Shareholding: 100% Note: The subsidiary is under liquidation procedures. 8 As of 12/31/2018 135 8.1.2 Business Scope of TSMC and Its Subsidiaries 8.1.4 Shareholders in Common of TSMC and Its Subsidiaries with Deemed Control and Subordination: None. 8.1.5 Rosters of Directors, Supervisors, and Presidents of TSMC’s Subsidiaries Unit: NT$ (USD), except shareholding Company Title Name Shareholding Shares (Investment Amount) % (Investment Holding %) As of 12/31/2018 TSMC Nanjing Company Limited May 16, 2016 Nanjing, China RMB 6,650,119 Manufacturing, selling, testing, and computer-aided design of integrated circuits and other semiconductor devices TSMC China Company Limited 0.001 Engineering support activities 489 Investing in new start-up technology companies 0 Investing in new start-up technology companies TSMC Nanjing Company Limited TSMC and its subsidiaries strive to provide the best foundry services. Subsidiaries in North America, Europe, Japan, China and South Korea are dedicated to timely serving TSMC customers worldwide. WaferTech in the United States and TSMC China provide additional 8-inch wafer capacity. TSMC Nanjing also began to provide additional 12-inch wafer capacity in 2018. Other subsidiaries support the Company’s core foundry business with related services such as design service and investment in start-up companies involved in design, manufacturing, and other related businesses in the semiconductor industry. 8.1.3 TSMC Subsidiaries Unit: NT$ (USD, EUR, JPY, KRW, RMB, CAD) thousands As of 12/31/2018 Company Date of Incorporation Place of Registration Capital Stock Business Activities TSMC North America Jan. 18, 1988 San Jose, California, U.S. US$ 11,000 Selling and marketing of integrated circuits and semiconductor devices TSMC Europe B.V. TSMC Japan Limited TSMC Korea Limited Mar. 04, 1994 Amsterdam, The Netherlands EUR 100 Customer service and supporting activities Sep. 10, 1997 Yokohama, Japan May 2, 2006 Seoul, Korea JPY KRW RMB 300,000 Customer service and supporting activities 400,000 Customer service and supporting activities 4,502,080 Manufacturing, selling, testing, and computer-aided design of integrated circuits and other semiconductor devices TSMC China Company Limited Aug. 04, 2003 Shanghai, China TSMC Technology, Inc. Feb. 20, 1996 Delaware, U.S. InveStar Semiconductor Development Fund, Inc. (Note) InveStar Semiconductor Development Fund, Inc. (II) LDC. (Note) Sep. 10, 1996 Cayman Islands Aug. 25, 2000 Cayman Islands TSMC Development, Inc. Feb. 16, 1996 Delaware, U.S. WaferTech, LLC Jun. 03, 1996 Delaware, U.S. TSMC Partners, Ltd. Mar. 26, 1998 British Virgin Islands TSMC Design Technology Canada Inc. May 28, 2007 Ontario, Canada TSMC Global Ltd. Jul. 13, 2006 British Virgin Islands VentureTech Alliance Fund II, L.P. Feb. 27, 2004 Cayman Islands VentureTech Alliance Fund III, L.P. Mar. 25, 2006 Cayman Islands Growth Fund Limited May 30, 2007 Cayman Islands TSMC Solar Europe GmbH (Note) Dec. 17, 2010 Hamburg, Germany US$ US$ US$ US$ US$ US$ CAD US$ US$ US$ US$ EUR 0.001 Investing in companies involved in the manufacturing related business in the semiconductor industry 0 Manufacturing, selling, and testing of integrated circuits and other semiconductor devices 988,268 Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry and other investment activities 2,434 Engineering support activities 11,284,000 Investment activities 4,087 Investing in new start-up technology companies 96,169 Investing in new start-up technology companies 2,154 Investing in new start-up technology companies 400 Selling of solar modules and related products and providing customer service VisEra Technologies Company Ltd. Dec.1, 2003 Hsinchu, Taiwan NT$ 2,911,531 Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter Note: InveStar Semiconductor Development Fund, Inc., InveStar Semiconductor Development Fund, Inc. (II) LDC., and TSMC Solar Europe GmbH are under liquidation procedures. 136 TSMC North America TSMC Europe B.V TSMC Japan Limited TSMC Korea Limited Director Director President Director Director President Director Director Supervisor President Director Director Director Chairman Director Director Supervisor President Chairman Director Director Director Supervisor Supervisor President Chairman Director President Sylvia Fang Rick Cassidy David Keller Wendell Huang Maria Marced Maria Marced Sylvia Fang Makoto Onodera Lora Ho (Note 1) Makoto Onodera C.C. Pan Chih-Chun Tsai Wendell Huang F.C. Tseng J.K. Wang L.C. Tu Lora Ho L.C. Tu Lora Ho J.K. Wang Cliff Hou Roger Luo Wendell Huang Sylvia Fang Roger Luo Lora Ho Cliff Hou Cliff Hou TSMC Technology, Inc. InveStar Semiconductor Development Fund, Inc. (Note 2) Director Wendell Huang InveStar Semiconductor Development Fund, Inc. (II) LDC (Note 2) Director Wendell Huang TSMC Development, Inc. WaferTech, LLC TSMC Partners, Ltd. Chairman Director President Director Director President Director Director President Lora Ho Sylvia Fang Lora Ho Y.L. Wang Wendell Huang Tsung-Chia Kuo Lora Ho Sylvia Fang Lora Ho - - - TSMC holds 11,000,000 shares - - - TSMC holds 200 shares - - - - TSMC holds 6,000 shares - - - TSMC holds 80,000 shares - - - - - (TSMC’s investment US$596,000,000) - - - - - - - (TSMC’s investment US$1,000,000,000) - - - TSMC Partners, Ltd. holds 10 shares - TSMC Partners, Ltd. holds 582,523 shares - TSMC Partners, Ltd. holds 9,298,625 shares - - - TSMC Partners, Ltd. holds 10 shares - - - TSMC Development, Inc. holds 293,636,833 shares - - - TSMC holds 988,268,244 shares - - - 100% - - - 100% - - - - 100% - - - 100% - - - - - (100%) - - - - - - - (100%) - - - 100% - 97.09% - 97.09% - - - 100% - - - 100% - - - 100% (Continued) 137  Shareholding 8.2 Status of TSMC Common Shares and ADRs Acquired, Disposed of, and Held by Subsidiaries: None. Shares (Investment Amount) % (Investment Holding %) 8.3 Special Notes 8.3.1 Private Placement Securities in 2018 and as of the Date of this Annual Report: None. 8.3.2 Regulatory Authorities’ Legal Penalties to the Company or Its Employees, and the Company’s Resulting Punishment on Its Employees for Violations of Internal Control System Provisions, Principal Deficiencies, and the State of Any Efforts to Make Improvements in 2018 and as of the Date of this Annual Report In 2018 and as of the date of this Annual Report, the Company complied with the Taiwan Company Law and Securities Trading Act relevant laws and regulations. The Company was issued two fines totaling NT$60,000 for violations of the labor related laws. (1) One case was due to four employees’ overtime application and approval not being processed in time. The Company has enhanced the communication and training on overtime application and management. (2) The second case occurred during a fab’s annual maintenance work, where an unexpected maintenance response resulted in excess work hours of seven employees. The Company has reviewed and strengthened the manpower planning for annual maintenance work. In addition, the Company was issued two fines totaling NT$100,000 for violations of occupational safety and health related laws. (1) One case involved chemical storage in a non- compliant location. The Company immediately reviewed and completed the necessary process improvements. (2) The second case involved a subcontractor personnel who accidentally broke a waste chemical pipe while working on electrical cable wiring, which lead to chemical exposure for two workers from leakage of the residual chemical. The Company has reviewed the management of the working environment and safety practices, and strengthened pre-work evaluation and prevention measures. 8.3.3 Any Events in 2018 and as of the Date of this Annual Report that Had Significant Impacts on Shareholders’ Right or Security Prices as Stated in Item 3 Paragraph 2 of Article 36 of Securities and Exchange Law of Taiwan: None. 8.3.4 Other Necessary Supplement: None. Company Title Name TSMC Design Technology Canada Inc. Director Director Director President Cliff Hou Cormac Michael O’Connell Sylvia Fang Cliff Hou TSMC Global Ltd. VentureTech Alliance Fund II, L.P. VentureTech Alliance Fund III, L.P. Growth Fund Limited Director Director Lora Ho Sylvia Fang None None None None None None TSMC Solar Europe GmbH (Note 2) Liquidator Liham Chu VisEra Technologies Company Ltd. Chairman Director Director Supervisor President Robert Kuan C.S. Yoo George Liu Wendell Huang S.C. Hsin - - - - TSMC Partners, Ltd. holds 2,300,000 shares - - TSMC holds 11,284 shares (TSMC’s investment US$3,789,066) (TSMC’s investment US$94,246,012) (VentureTech Alliance Fund III, L.P.’s investment US$2,153,768) - TSMC holds 800 shares 54,600 shares - - - - TSMC holds 253,120,000 shares - - - - 100% - - 100% (98.00%) (98.00%) (100%) - 100% 0.02% - - - - 86.94% Note 1: Deputy Chief Financial Officer Wendell Huang replaced Senior Vice President and Chief Financial Officer Lora Ho as the statutory auditor of TSMC Japan, effective February 26, 2019. Note 2: InveStar Semiconductor Development Fund, Inc., InveStar Semiconductor Development Fund, Inc. (II) LDC., and TSMC Solar Europe GmbH are under liquidation procedures. 8.1.6 Operational Highlights of TSMC Subsidiaries Unit: NT$ thousands, except EPS (NT$) Company Capital Stock Assets Liabilities Net Worth Net Revenues As of 12/31/2018 Income (Loss) from Operation Net Income (Loss) Basic Earnings (Loss) Per Share TSMC North America TSMC Europe B.V. TSMC Japan Limited TSMC Korea Limited TSMC Partners, Ltd. TSMC Global Ltd. WaferTech, LLC 338,140 96,075,151 91,805,759 4,269,393 657,168,665 197,336 117,948 10.72 585,792 139,964 3,522 83,490 11,040 199,782 42,492 445,828 141,136 40,966 525,641 225,922 21,185 56,391 41,697 208,485.23 9,122 1,953 4,035 2,170 672.54 27.12 28,920,857 1,966,940 1,966,771 1,863,196 186,319,593.80 52,396,272 2,505,290 2,499,370 2,499,370 2.53 58,646 1,526 0 0 30,379,366 52,396,272 346,870,160 400,399,084 6,821,153 393,577,931 11,025,427 9,271,650 9,271,602 845,894.15 0 5,526,309 612,632 4,913,677 8,194,379 1,851,567 1,473,555 TSMC Development, Inc. 0.03 28,920,857 TSMC China Company Limited 20,157,163 58,650,900 3,064,082 55,586,818 17,659,567 4,785,348 5,397,462 TSMC Nanjing Company Limited 29,774,580 55,324,312 34,486,833 20,837,480 6,910,049 (7,890,838) (8,215,989) VisEra Technologies Company Ltd. 2,911,531 6,015,755 864,736 5,151,018 2,748,420 481,896 412,283 TSMC Technology, Inc. 0.03 1,148,761 561,753 587,008 2,044,078 TSMC Design Technology Canada Inc. 55,005 241,004 35,581 205,423 297,926 InveStar Semiconductor Development Fund, Inc. InveStar Semiconductor Development Fund, Inc. (II) LDC. VentureTech Alliance Fund II, L.P. VentureTech Alliance Fund III, L.P. TSMC Solar Europe GmbH Growth Fund Limited 15,031 0 125,643 2,956,247 14,088 66,207 532 0 125,013 175,013 7 0 0 0 525 0 125,013 175,013 0 20,106 (20,106) 97,782 0 97,782 0 0 0 (863) 0 766 97,409 27,084 47,866 32,224 0 0 (6,781) (3,712) (3,416) (1) (597) (6,781) (3,726) (3,416) (21) (597) 5.02 NA NA 1.42 4,786,620.90 14.01 0.00 (0.71) NA NA (25.73) NA 138 139 Contact Information Corporate Headquarters & Fab 12A 8, Li-Hsin Rd. 6, Hsinchu Science Park, Hsinchu 30078, Taiwan, R.O.C. Tel: +886-3-5636688 Fax: +886-3-5637000 R&D Center & Fab 12B 168, Park Ave. II, Hsinchu Science Park, Hsinchu 30075, Taiwan, R.O.C. Tel: +886-3-5636688 Fax: +886-3-6687827 Fab 2, Fab 5 121, Park Ave. 3, Hsinchu Science Park, Hsinchu 30077, Taiwan, R.O.C. Tel: +886-3-5636688 Fax: +886-3-5781546 Fab 3 9, Creation Rd. 1, Hsinchu Science Park, Hsinchu 30077, Taiwan, R.O.C. Tel: +886-3-5636688 Fax: +886-3-5781548 Fab 6 1, Nan-Ke North Rd., Tainan Science Park, Tainan 74144, Taiwan, R.O.C. Tel: +886-6-5056688 Fax: +886-6-5052057 Fab 8 25, Li-Hsin Rd., Hsinchu Science Park, Hsinchu 30078, Taiwan, R.O.C. Tel: +886-3-5636688 Fax: +886-3-5662051 Fab 14A 1-1, Nan-Ke North Rd., Tainan Science Park, Tainan 74144, Taiwan, R.O.C. Tel: +886-6-5056688 Fax: +886-6-5051262 Fab 14B 17, Nan-Ke 9th Rd., Tainan Science Park, Tainan 74144, Taiwan, R.O.C. Tel: +886-6-5056688 Fax: +886-6-5055217 Fab 15A 1, Keya Rd. 6, Central Taiwan Science Park, Taichung 42882, Taiwan, R.O.C. Tel: +886-4-27026688 Fax: +886-4-25607548 Fab 15B 1, Xinke Rd., Central Taiwan Science Park, Taichung 40763, Taiwan, R.O.C. Tel: +886-4-27026688 Fax: +886-4-24630372 Advanced Backend Fab 1 6, Creation Rd. II, Hsinchu Science Park, Hsinchu 30077, Taiwan, R.O.C. Tel: +886-3-5636688 Fax: +886-3-5773628 Advanced Backend Fab 2 1-1, Nan-Ke North Rd., Tainan Science Park, Tainan 74144, Taiwan, R.O.C. Tel: +886-6-5056688 Fax: +886-6-5051262 Advanced Backend Fab 3 101, Longyuan 6th Rd., Longtan Dist., Taoyuan City 32542, Taiwan R.O.C. Tel: +886-3-5636688 Fax: +886-3-4804250 Advanced Backend Fab 5 5, Keya W. Rd., Central Taiwan Science Park, Taichung 42882, Taiwan, R.O.C. Tel: +886-4-27026688 Fax: +886-4-27026688 TSMC North America 2851 Junction Avenue, San Jose, CA 95134, U.S.A. Tel: +1-408-3828000 Fax: +1-408-3828008 TSMC Europe B.V. World Trade Center, Zuidplein 60, 1077 XV Amsterdam, The Netherlands Tel: +31-20-3059900 Fax: +31-20-3059911 TSMC Japan Limited 21F, Queen’s Tower C, 2-3-5, Minatomirai, Nishi-ku Yokohama, Kanagawa, 220-6221, Japan Tel: +81-45-6820470 Fax: +81-45-6820673 TSMC China Company Limited 4000, Wen Xiang Road, Songjiang, Shanghai, China Postcode: 201616 Tel: +86-21-57768000 Fax: +86-21-57762525 TSMC Nanjing Company Limited 16, Zifeng Road, Pukou Economic Development Zone, Nanjing Jiangsu Province, China Postcode: 211806 Tel: +86-25-57668000 Fax: +86-25-57712395 TSMC Korea Limited 15F, AnnJay Tower, 208, Teheran-ro, Gangnam-gu Seoul 06220, Korea Tel: +82-2-20511688 TSMC Design Technology Canada Inc. 535 Legget Dr., Suite 600, Kanata, ON K2K 3B8, Canada Tel: +613-576-1990 Fax: +613-576-1999 TSMC Technology, Inc 2851 Junction Avenue, San Jose, CA 95134, U.S.A Tel: +1-408-3828000 WaferTech L.L.C. 5509 N.W. Parker Street, Camas, WA 98607-9299 U.S.A. Tel: +1-360-8173000 Fax: +1-360-8173590 TSMC Spokesperson Name: Lora Ho Title: Senior Vice President & CFO Tel: +886-3-5054602 Fax: +886-3-5637000 Email: cyhsu@tsmc.com TSMC Deputy Spokesperson/Corporate Communications Name: Elizabeth Sun Title: Senior Director, TSMC Corporate Communication Division Tel: +886-3-5682085 Fax: +886-3-5637000 Email: elizabeth_sun@tsmc.com Auditors Company: Deloitte & Touche Auditors: Mei-Yen Chiang, Yu-Feng Huang Address: 20F, No. 100, Songren Rd., Xinyi Dist.,Taipei 11073, Taiwan, R.O.C. Tel: +886-2-27259988 Fax: +886-2-40516888 Website: http://www.deloitte.com.tw Common Share Transfer Agent and Registrar Company: The Transfer Agency Department of CTBC Bank Address: 5F, 83, Sec. 1, Chung-Ching S. Rd., Taipei 10008, Taiwan, R.O.C. Tel: +886-2-66365566 Fax: +886-2-23116723 Website: http://www.ctbcbank.com ADR Depositary Bank Company: Citibank, N.A. Depositary Receipts Services Address: 388 Greenwich Street, New York, NY 10013, U.S.A. Website: http://www.citi.com/dr Tel: +1-877-2484237 (toll free) Tel: +1-781-5754555 (out of US) Fax: +1-201-3243284 E-mail: citibank@shareholders-online.com TSMC’s depositary receipts of the common shares are listed on New York Stock Exchange (NYSE) under the symbol TSM. The information relating to TSM is available at http://www.nyse.com and http://mops.twse.com.tw “TSMC”, “tsmc”, “Open Innovation Platform”, “Open Innovation”, “GIGAFAB”, “CoWoS” and “TSMC-SoIC” are some of our registered and/or pending trademarks used by us in various jurisdictions, including Taiwan. All rights reserved. Copyright © 2018 by Taiwan Semiconductor Manufacturing Company, Ltd. All rights reserved. TSE: 2330 NYSE: TSM TSMC Annual Report 2018 (II) Financial Statements Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw TSMC annual report is available at http://www.tsmc.com/english/investorRelations/annual_reports.htm Printed on March 12, 2019 Contents Consolidated Financial Statements for the Years Ended December 31, 2018 and 2017 and Independent Auditors’ Report Parent Company Only Financial Statements for the Years Ended December 31, 2018 and 2017 and Independent Auditors’ Report 1 115 Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries Consolidated Financial Statements for the Years Ended December 31, 2018 and 2017 and Independent Auditors’ Report - 1 - - 2 - REPRESENTATION LETTER The entities that are required to be included in the combined financial statements of Taiwan Semiconductor Manufacturing Company Limited as of and for the year ended December 31, 2018, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries do not prepare a separate set of combined financial statements. Very truly yours, TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED By MARK LIU Chairman February 19, 2019 - 3 - - 4 - Key audit matters for the Company’s consolidated financial statements for the year ended December 31, 2018 are stated as follows: Estimate for sales returns and allowances In consideration of business volume and market conditions, the Company provides a variety of business incentives to specific customers or products. The estimate for sales returns and allowance is based on historical experience and the varying contractual terms. Please refer to Notes 4, 5 and 26 to the consolidated financial statements for the details of the information about estimate for sales returns and allowances. Since the estimate for sales returns and allowances is subject to accounting judgment and estimation, and the result could also affect the net revenue in the consolidated financial statements, it has been identified as a key audit matter. Our key audit procedures performed in respect of the above area included the following: 1. Understood and tested the design and operating effectiveness of the key controls over estimate for sales returns and allowances; 2. Understood and assessed the reasonableness of assumptions made and methodology used in estimating sales returns and allowances; 3. Sampled and inspected the sales contracts of main products by agreeing the contractual terms and performed an analysis to challenge the estimation on possibility that specific products could meet business incentives condition to verify the reasonableness of the accrual of the sales returns and allowances; 4. Performed a retrospective review to comparatively analyze the historical accuracy of judgments with reference to actual sales returns and allowance paid. Timing to commence depreciation of property, plant and equipment (PP&E) The Company continues to invest in capital expenditures to develop and build capacity in leading-edge technologies to meet customers’ demand. Please refer to Notes 4, 5 and 17 to the consolidated financial statements for the details of the information and accounting policy about the depreciation of PP&E. According to IAS 16, depreciation of PP&E begins when the assets are available for use, and in the condition necessary for the assets to be capable of operating in the intended manner. Due to the significant capital expenditures of the Company, and the criteria to determine whether such assets are available for their intended use vary within categories of assets as well as involve subjective judgments, the validity of the timing to commence depreciation of PP&E could have a material impact on its financial performance. Consequently, the validity of the timing to commence depreciation of PP&E is identified as a key audit matter. Our key audit procedures performed in respect of the above area included the following: 1. Understood and tested the design and operating effectiveness of the key controls over the timing to commence depreciation of PP&E; 2. Understood the criteria the assets are defined as available for their intended use and the corresponding accounting treatments; - 5 - 3. Sampled and reviewed the appropriateness of the timing for commencing depreciation after the assets met the criteria of available for use in current year; 4. Performed an observation on the physical count of equipment under installation and construction in progress; sampled and inspected the supporting documentation to verify that the status of equipment under installation and construction in progress are not available for use; 5. Sampled equipment under installation and construction in progress which met the criteria of available for use and were transferred in the subsequent period to evaluate the reasonableness of the timing for commencing depreciation; 6. Sampled and reviewed the appropriateness of the equipment under installation and construction in progress which are not available for their intended use. Other Matter We have also audited the parent company only financial statements of Taiwan Semiconductor Manufacturing Company Limited as of and for the years ended December 31, 2018 and 2017 on which we have issued an unmodified opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process. Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. - 6 - As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern. 5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2018 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. - 7 - - 8 - Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (Note 7) Financial assets at fair value through other comprehensive income (Note 8) Available-for-sale financial assets (Note 9) Held-to-maturity financial assets (Note 10) Financial assets at amortized cost (Note 11) Hedging derivative financial assets (Note 13) Hedging financial assets (Note 13) Notes and accounts receivable, net (Note 14) Receivables from related parties (Note 37) Other receivables from related parties (Note 37) Inventories (Notes 5, 15 and 41) Other financial assets (Note 38) Other current assets (Note 19) Total current assets NONCURRENT ASSETS Financial assets at fair value through other comprehensive income (Notes 5 and 8) Held-to-maturity financial assets (Note 10) Financial assets at amortized cost (Note 11) Financial assets carried at cost (Note 12) Investments accounted for using equity method (Notes 5 and 16) Property, plant and equipment (Notes 5 and 17) Intangible assets (Notes 5 and 18) Deferred income tax assets (Notes 5 and 31) Refundable deposits Other noncurrent assets (Note 19) Total noncurrent assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term loans (Notes 20 and 34) Financial liabilities at fair value through profit or loss (Note 7) Hedging derivative financial liabilities (Note 13) Hedging financial liabilities (Note 13) Accounts payable Payables to related parties (Note 37) Salary and bonus payable Accrued profit sharing bonus to employees and compensation to directors and supervisors (Notes 25 and 33) Payables to contractors and equipment suppliers Income tax payable (Notes 5 and 31) Provisions (Notes 5 and 21) Long-term liabilities - current portion (Note 22) Accrued expenses and other current liabilities (Notes 5, 24, 26 and 34) Total current liabilities NONCURRENT LIABILITIES Bonds payable (Notes 22 and 34) Deferred income tax liabilities (Notes 5 and 31) Net defined benefit liability (Notes 5 and 23) Guarantee deposits (Notes 24 and 34) Others Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT Capital stock (Note 25) Capital surplus (Note 25) Retained earnings (Note 25) Appropriated as legal capital reserve Appropriated as special capital reserve Unappropriated earnings Others (Note 25) Equity attributable to shareholders of the parent NON - CONTROLLING INTERESTS Total equity TOTAL The accompanying notes are an integral part of the consolidated financial statements. - 9 - December 31, 2018 Amount % December 31, 2017 Amount % $ $ 577,814,601 3,504,590 99,561,740 - - 14,277,615 - 23,497 128,613,391 584,412 65,028 103,230,976 18,597,448 5,406,423 28 - 5 - - 1 - - 6 - - 5 1 - 553,391,696 569,751 - 93,374,153 1,988,385 - 34,394 - 121,133,248 1,184,124 171,058 73,880,747 7,253,114 4,222,440 28 - - 5 - - - - 6 - - 4 - - 951,679,721 46 857,203,110 43 3,910,681 - 7,528,277 - 17,865,838 1,072,050,279 17,002,137 16,806,387 1,700,071 1,584,647 - - - - 1 51 1 1 - - - 18,833,329 - 4,874,257 17,861,488 1,062,542,322 14,175,140 12,105,463 1,283,414 2,983,120 - 1 - - 1 53 1 1 - - 1,138,448,317 54 1,134,658,533 57 $ 2,090,128,038 100 $ 1,991,861,643 100 $ 88,754,640 40,825 - 155,832 32,980,933 1,376,499 14,471,372 23,981,154 43,133,659 38,987,053 - 34,900,000 61,760,619 $ 4 - - - 2 - 1 1 2 2 - 2 3 63,766,850 26,709 15,562 - 28,412,807 1,656,356 14,254,871 23,419,135 55,723,774 33,479,311 13,961,787 58,401,122 65,588,396 3 - - - 1 - 1 1 3 2 1 3 3 340,542,586 17 358,706,680 18 56,900,000 233,284 9,651,405 3,353,378 1,950,989 72,089,056 3 - - - - 3 91,800,000 302,205 8,850,704 7,586,790 1,855,621 110,395,320 5 - 1 - - 6 412,631,642 20 469,102,000 24 259,303,805 56,315,932 12 3 259,303,805 56,309,536 13 3 276,033,811 26,907,527 1,073,706,503 1,376,647,841 13 1 52 66 (15,449,913) (1) 241,722,663 - 991,639,347 1,233,362,010 12 - 49 61 (1) (26,917,818) 1,676,817,665 80 1,522,057,533 76 678,731 - 702,110 - 1,677,496,396 80 1,522,759,643 76 $ 2,090,128,038 100 $ 1,991,861,643 100 Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) 2018 2017 Amount % Amount % NET REVENUE (Notes 5, 26, 37 and 45) $1,031,473,557 100 $ 977,447,241 100 COST OF REVENUE (Notes 5, 15, 33, 37 and 41) 533,487,516 52 482,616,286 49 GROSS PROFIT BEFORE UNREALIZED GROSS PROFIT ON SALES TO ASSOCIATES 497,986,041 48 494,830,955 51 UNREALIZED GROSS PROFIT ON SALES TO ASSOCIATES GROSS PROFIT OPERATING EXPENSES (Notes 5, 33 and 37) Research and development General and administrative Marketing (111,788) - (4,553) - 497,874,253 48 494,826,402 51 85,895,569 20,265,883 5,987,828 8 2 1 80,732,463 21,196,717 5,972,488 8 2 1 Total operating expenses 112,149,280 11 107,901,668 11 OTHER OPERATING INCOME AND EXPENSES, NET (Notes 17, 18, 27 and 33) (2,101,449) - (1,365,511) (1) INCOME FROM OPERATIONS (Note 45) 383,623,524 37 385,559,223 39 NON-OPERATING INCOME AND EXPENSES Share of profits of associates Other income (Note 28) Foreign exchange gain (loss), net (Note 43) Finance costs (Note 29) Other gains and losses, net (Note 30) 3,057,781 14,852,814 2,438,171 (3,051,223) (3,410,804) Total non-operating income and expenses 13,886,739 - 2 - - - 2 2,985,941 9,610,294 (1,509,473) (3,330,313) 2,817,358 10,573,807 1 1 - - - 2 INCOME BEFORE INCOME TAX 397,510,263 39 396,133,030 41 INCOME TAX EXPENSE (Notes 5 and 31) 46,325,857 5 52,986,182 6 NET INCOME 351,184,406 34 343,146,848 35 (Continued) - 10 - Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 23, 25 and 31) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation Unrealized loss on investments in equity instruments at fair value through other comprehensive income Gain on hedging instruments Share of other comprehensive loss of associates Income tax benefit related to items that will not be reclassified subsequently Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of 2018 2017 Amount % Amount % $ (861,162) - $ (254,681) - (3,309,089) 40,975 (14,217) 195,729 (3,947,764) - - - - - - - (20,853) 30,562 (244,972) - - - - - foreign operations 14,562,386 1 (28,259,627) (3) Changes in fair value of available-for-sale financial assets Cash flow hedges Unrealized loss on investments in debt instruments at fair value through other comprehensive income Share of other comprehensive income (loss) of associates Income tax expense related to items that may be reclassified subsequently - - (870,906) 93,260 - 13,784,740 - - - - - 1 (218,832) 4,683 - (99,347) - - - - (3,536) (28,576,659) - (3) Other comprehensive income (loss) for the year, net of income tax 9,836,976 1 (28,821,631) (3) TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 361,021,382 35 $ 314,325,217 32 NET INCOME ATTRIBUTABLE TO: Shareholders of the parent Non-controlling interests $ 351,130,884 34 - 53,522 $ 343,111,476 35 - 35,372 $ 351,184,406 34 $ 343,146,848 35 (Continued) - 11 - Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Shareholders of the parent Non-controlling interests 2018 2017 Amount % Amount % $ 360,965,015 35 - 56,367 $ 314,294,993 32 - 30,224 $ 361,021,382 35 $ 314,325,217 32 2018 Income Attributable to Shareholders of the Parent 2017 Income Attributable to Shareholders of the Parent EARNINGS PER SHARE (NT$, Note 32) Basic earnings per share Diluted earnings per share $ $ 13.54 13.54 $ $ 13.23 13.23 The accompanying notes are an integral part of the consolidated financial statements. (Concluded) - 12 - 6 9 3 , 6 9 4 , 7 7 6 , 1 $ 1 3 7 , 8 7 6 $ 5 6 6 , 7 1 8 , 6 7 6 , 1 $ ) 3 1 9 , 9 4 4 , 5 1 ( $ ) 3 4 8 , 1 ( $ 1 0 6 , 3 2 $ $ ) 4 2 3 , 9 2 4 , 3 ( $ - ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( - - - - ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( 8 4 8 , 6 4 1 , 3 4 3 2 7 3 , 5 3 6 7 4 , 1 1 1 , 3 4 3 - - - - ) 1 3 6 , 1 2 8 , 8 2 ( ) 8 4 1 , 5 ( ) 3 8 4 , 6 1 8 , 8 2 ( ) 1 1 5 , 1 7 5 , 8 2 ( 7 1 2 , 5 2 3 , 4 1 3 4 2 2 , 0 3 3 9 9 , 4 9 2 , 4 1 3 ) 1 1 5 , 1 7 5 , 8 2 ( l a t o T y t i u q E g n i l l o r t n o c - n o N s t s e r e t n I l a t o T l a t o T 6 2 1 , 1 5 0 , 0 9 3 , 1 $ 5 6 8 , 2 0 8 $ 1 6 2 , 8 4 2 , 9 8 3 , 1 $ 3 8 9 , 3 6 6 , 1 $ - - - - - - - d e n r a e n U d e s a B - k c o t S e e y o l p m E n o i t a s n e p m o C $ ) 5 0 2 , 3 ( - 7 3 8 , 0 2 - ) 4 9 9 , 0 1 ( 4 8 6 , 1 ) 4 9 9 , 7 ( ) 4 9 9 , 7 ( ) 5 7 6 , 3 1 1 ( ) 5 7 6 , 3 1 1 ( ) 5 0 2 , 3 ( 4 9 9 , 0 1 3 5 1 , 9 1 - - - - - - - - - - ) 0 9 2 , 0 1 ( ) 0 9 2 , 0 1 ( 3 4 6 , 9 5 7 , 2 2 5 , 1 0 1 1 , 2 0 7 3 3 5 , 7 5 0 , 2 2 5 , 1 ) 8 1 8 , 7 1 9 , 6 2 ( ) 0 9 2 , 0 1 ( 2 2 8 , 5 4 2 , 1 2 4 3 0 8 4 , 5 4 2 , 1 ) 1 4 8 , 0 1 3 ( - 5 6 4 , 5 0 0 , 4 2 5 , 1 2 5 4 , 2 0 7 3 1 0 , 3 0 3 , 3 2 5 , 1 ) 9 5 6 , 8 2 2 , 7 2 ( ) 0 9 2 , 0 1 ( - - - - - - - - - - - - - - - ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( - - - - - - ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( 6 0 4 , 4 8 1 , 1 5 3 2 2 5 , 3 5 4 8 8 , 0 3 1 , 1 5 3 - - - - - 6 7 9 , 6 3 8 , 9 2 8 3 , 1 2 0 , 1 6 3 5 4 8 , 2 7 6 3 , 6 5 1 3 1 , 4 3 8 , 9 5 0 4 , 9 9 5 , 0 1 5 1 0 , 5 6 9 , 0 6 3 5 0 4 , 9 9 5 , 0 1 - ) 2 6 1 , 2 2 ( - 7 2 0 , 2 1 4 1 , 0 1 - - - 6 ) 1 8 6 , 2 ( ) 3 1 4 , 7 7 ( ) 3 1 4 , 7 7 ( ) 2 6 1 , 2 2 ( ) 2 6 1 , 2 2 ( - 6 5 0 , 3 9 1 , 1 - 7 2 0 , 2 1 8 6 , 2 5 3 1 , 0 1 - - - - - - 7 4 4 , 8 7 4 4 , 8 - - - - - - - - - - - - - - 6 2 2 , 4 6 2 2 , 4 7 3 5 , 1 4 7 3 5 , 1 4 - ) 2 6 1 , 2 2 ( - - - - n o ) s s o L ( n i a G g n i g d e H s t n e m u r t s n I w o l F h s a C e v r e s e R s e g d e H $ 5 0 1 $ d e z i l a e r n U n o ) s s o L ( n i a G l a i c n a n F i r i a F t a s t e s s A h g u o r h T e u l a V r e h t O e v i s n e h e r p m o C e m o c n I d e z i l a e r n U m o r f ) s s o L ( n i a G e l a s - r o f - e l b a l i a v A s t e s s A l a i c n a n F i n g i e r o F y c n e r r u C n o i t a l s n a r T e v r e s e R s g n i n r a E d e n i a t e R l a t o T d e t a i r p o r p p a n U l a t i p a C l a i c e p S s g n i n r a E e v r e s e R l a t i p a C l a g e L e v r e s e R l a t i p a C s u l p r u S k c o t S n o m m o C - k c o t S l a t i p a C s e r a h S t n u o m A ) s d n a s u o h T n I ( s r e h t O t n e r a P e h t f o s r e d l o h e r a h S o t e l b a t u b i r t t A y t i u q E ) e r a h S r e P s d n e d i v i D t p e c x E , s r a l l o D n a w i a T w e N f o s d n a s u o h T n I ( Y T I U Q E N I S E G N A H C F O S T N E M E T A T S D E T A D I L O S N O C s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T - - - - 1 2 1 , 4 1 2 1 , 4 - - - - - 6 2 2 , 4 ) 6 2 2 , 4 ( - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 5 1 9 , 4 2 5 ( ) 5 1 9 , 4 2 5 ( ) 5 6 4 , 7 9 0 , 4 ( ) 5 6 4 , 7 9 0 , 4 ( 6 5 0 , 3 9 1 , 1 - - - - - $ 1 4 6 , 2 $ 7 3 2 , 1 6 6 , 1 $ 9 6 1 , 8 0 0 , 2 7 0 , 1 $ 4 2 2 , 0 1 7 , 3 6 8 $ - - - - ) 5 1 7 , 6 1 2 ( ) 5 1 7 , 6 1 2 ( - - - - - - - - - - ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 8 1 7 , 4 2 4 , 3 3 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 1 8 3 , 7 3 9 , 4 1 2 ( 6 7 4 , 1 1 1 , 3 4 3 6 7 4 , 1 1 1 , 3 4 3 ) 7 1 9 , 8 5 3 , 8 2 ( ) 2 7 9 , 4 4 2 ( ) 2 7 9 , 4 4 2 ( ) 7 1 9 , 8 5 3 , 8 2 ( 4 0 5 , 6 6 8 , 2 4 3 4 0 5 , 6 6 8 , 2 4 3 - - - - - - - - - - - - - - - ) 4 7 0 , 4 1 2 ( ) 0 8 6 , 7 9 6 , 6 2 ( 0 1 0 , 2 6 3 , 3 3 2 , 1 7 4 3 , 9 3 6 , 1 9 9 4 7 0 , 4 1 2 - 1 2 3 , 6 5 5 , 1 1 2 3 , 6 5 5 , 1 - - - - - - - - - - - - - - - ) 0 8 6 , 7 9 6 , 6 2 ( 1 3 3 , 8 1 9 , 4 3 2 , 1 8 6 6 , 5 9 1 , 3 9 9 - - - - - - - ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 8 4 1 , 1 1 3 , 4 3 ( ) 7 2 5 , 7 0 9 , 6 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 9 1 7 , 1 6 6 , 8 6 2 ( 4 8 8 , 0 3 1 , 1 5 3 4 8 8 , 0 3 1 , 1 5 3 3 3 3 , 5 5 6 , 4 1 ) 4 7 2 , 5 6 7 ( ) 4 7 2 , 5 6 7 ( 3 3 3 , 5 5 6 , 4 1 0 1 6 , 5 6 3 , 0 5 3 0 1 6 , 5 6 3 , 0 5 3 - - - - - - - - - - - - - - - - ) 6 5 0 , 3 9 1 , 1 ( ) 6 5 0 , 3 9 1 , 1 ( - - - - - - - - - - - - - - - - - - - - - - - - - - 7 2 5 , 7 0 9 , 6 2 7 2 5 , 7 0 9 , 6 2 $ 5 4 9 , 7 9 2 , 8 0 2 $ 4 0 3 , 2 7 2 , 6 5 $ 5 0 8 , 3 0 3 , 9 5 2 $ 0 8 3 , 0 3 9 , 5 2 7 1 0 2 , 1 Y R A U N A J , E C N A L A B - - - - - - - - - 8 1 7 , 4 2 4 , 3 3 8 1 7 , 4 2 4 , 3 3 - - - - - - - - 5 8 0 , 7 4 9 9 , 0 1 3 5 1 , 9 1 - - - - - - - - - - - - - - - - - - - - - - e r a h s r e p 7 $ T N - s r e d l o h e r a h s o t s d n e d i v i d h s a C s g n i n r a e s ’ r a e y r o i r p f o s n o i t a i r p o r p p A e v r e s e r l a t i p a c l a g e L 7 1 0 2 n i e m o c n i t e N l a t o T f o t e n , 7 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c r e h t O x a t e m o c n i f o s e i t i u q e n i s e g n a h c f o e r a h s o t s t n e m t s u j d A s e t a i c o s s a 7 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c l a t o T s e i r a i d i s b u s f o s e i t i u q e n i s e g n a h c f o e r a h s m o r F s t s e r e t n i g n i l l o r t n o c - n o n n i e s a e r c e D y r a i d i s b u s f o l a s o p s i d f o t c e f f E s r e d l o h e r a h s m o r f n o i t a n o D 3 6 6 , 2 2 7 , 1 4 2 6 3 5 , 9 0 3 , 6 5 5 0 8 , 3 0 3 , 9 5 2 0 8 3 , 0 3 9 , 5 2 7 1 0 2 , 1 3 R E B M E C E D , E C N A L A B - - - - n o i t a c i l p p a e v i t c e p s o r t e r f o t c e f f E 3 6 6 , 2 2 7 , 1 4 2 6 3 5 , 9 0 3 , 6 5 5 0 8 , 3 0 3 , 9 5 2 0 8 3 , 0 3 9 , 5 2 8 1 0 2 , 1 Y R A U N A J , E C N A L A B D E T S U J D A - - - - - - - - - 8 4 1 , 1 1 3 , 4 3 - - 8 4 1 , 1 1 3 , 4 3 - - - - - - - - - ) 0 2 4 , 6 ( 1 8 6 , 2 5 3 1 , 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - e r a h s r e p 8 $ T N - s r e d l o h e r a h s o t s d n e d i v i d h s a C s g n i n r a e s ’ r a e y r o i r p f o s n o i t a i r p o r p p A e v r e s e r l a t i p a c l a i c e p S e v r e s e r l a t i p a c l a g e L 8 1 0 2 n i e m o c n i t e N l a t o T f o t e n , 8 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c r e h t O x a t e m o c n i 8 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c l a t o T r i a f t a s t n e m u r t s n i y t i u q e n i s t n e m t s e v n i f o l a s o p s i D e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v s t n e m u r t s n i g n i g d e h n o s s o l r o f t n e m t s u j d a s i s a B f o s e i t i u q e n i s e g n a h c f o e r a h s o t s t n e m t s u j d A s e t a i c o s s a s e i r a i d i s b u s f o s e i t i u q e n i s e g n a h c f o e r a h s m o r F s t s e r e t n i g n i l l o r t n o c - n o n n i e s a e r c e D s r e d l o h e r a h s m o r f n o i t a n o D - 3 1 - $ ) 7 4 3 , 2 4 0 , 2 1 ( $ 1 4 8 , 7 4 6 , 6 7 3 , 1 $ 3 0 5 , 6 0 7 , 3 7 0 , 1 $ 7 2 5 , 7 0 9 , 6 2 $ 1 1 8 , 3 3 0 , 6 7 2 $ 2 3 9 , 5 1 3 , 6 5 $ 5 0 8 , 3 0 3 , 9 5 2 $ 0 8 3 , 0 3 9 , 5 2 8 1 0 2 , 1 3 R E B M E C E D , E C N A L A B . s t n e m e t a t s l a i c n a n i f d e t a d i l o s n o c e h t f o t r a p l a r g e t n i n a e r a s e t o n g n i y n a p m o c c a e h T Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Reversal of expected credit losses on investments in debt 2018 2017 $ 397,510,263 $ 396,133,030 288,124,897 4,421,405 255,795,962 4,346,736 instruments Finance costs Share of profits of associates Interest income Loss on disposal or retirement of property, plant and equipment, net Gain on disposal of intangible assets, net Impairment loss on property, plant and equipment Impairment loss on intangible assets Impairment loss on financial assets Loss on financial instruments at fair value through profit or loss, net Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net Gain on disposal of available-for-sale financial assets, net Gain on disposal of financial assets carried at cost, net Gain from disposal of subsidiaries Unrealized gross profit on sales to associates Loss (gain) on foreign exchange, net Dividend income Loss arising from fair value hedges, net Changes in operating assets and liabilities: Financial instruments at fair value through profit or loss Notes and accounts receivable, net Receivables from related parties Other receivables from related parties Inventories Other financial assets Other current assets Other noncurrent assets Accounts payable Payables to related parties Salary and bonus payable Accrued profit sharing bonus to employees and compensation to directors and supervisors Accrued expenses and other current liabilities Provisions Net defined benefit liability Cash generated from operations Income taxes paid (2,383) 3,051,223 (3,057,781) (14,694,456) 1,005,644 (436) 423,468 - - 358,156 989,138 - - - 111,788 2,916,659 (158,358) 2,386 - 3,330,313 (2,985,941) (9,464,706) 1,097,908 - - 13,520 29,603 - - (76,986) (12,809) (17,343) 4,553 (9,118,580) (145,588) 30,293 480,109 (13,271,268) 599,712 106,030 (29,369,975) (4,601,295) (513,051) 152,555 4,540,583 (279,857) 216,501 5,645,093 1,061,805 (214,565) (13,873) (25,229,101) (502,306) 12,085 (1,276,130) 2,572,072 394,182 582,054 562,019 (20,226,384) - (60,461) 525,129 30,435,424 (4,057,900) 44,615 648,938,549 (63,620,382) 619,336,831 (45,382,523) Net cash generated by operating activities 573,954,308 585,318,167 (Continued) - 14 - Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) 2018 2017 - - $ (310,478) $ (96,412,786) - - (100,510,905) (1,997,076) - (1,313,124) (315,581,881) (330,588,188) (4,480,588) (819,694) (7,100,306) (2,294,098) - - 487,216 86,639,322 - - 2,032,442 - 181,450 492 127,878 - - 250,538 14,660,388 - - - 158,358 - - 69,480,675 17,980,640 - 58,237 326,232 - - 14,828 33,008 - 9,526,253 2,629,747 1,811 (4,080) 145,588 3,262,910 (2,227,541) 1,857,188 4,245,772 (1,326,983) 432,944 (314,268,908) (336,164,903) (Continued) CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of: Financial instruments at fair value through profit or loss - debt instruments Financial assets at fair value through other comprehensive income Available-for-sale financial assets Held-to-maturity financial assets Financial assets at amortized cost Financial assets carried at cost Property, plant and equipment Intangible assets Land use right Proceeds from disposal or redemption of: Financial instruments at fair value through profit or loss - debt instruments Financial assets at fair value through other comprehensive income Available-for-sale financial assets Held-to-maturity financial assets Financial assets at amortized cost Financial assets carried at cost Property, plant and equipment Intangible assets Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income Proceeds from return of capital of financial assets carried at cost Derecognition of hedging derivative financial instruments Derecognition of hedging financial instruments Interest received Proceeds from government grants - property, plant and equipment Proceeds from government grants - land use right and others Cash outflow from disposal of subsidiary Other dividends received Dividends received from investments accounted for using equity method Refundable deposits paid Refundable deposits refunded Net cash used in investing activities - 15 - Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) 2018 2017 CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Repayment of bonds Repayment of long-term bank loans Interest paid Guarantee deposits received Guarantee deposits refunded Cash dividends Donation from shareholders Decrease in non-controlling interests - (58,024,900) $ 23,922,975 $ 10,394,290 (38,100,000) (31,460) (3,482,703) 950,928 (3,823,183) (207,443,044) (181,512,663) 20,837 (113,675) (3,233,331) 1,668,887 (1,948,106) 10,141 (77,413) Net cash used in financing activities (245,124,791) (215,697,629) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 9,862,296 (21,317,772) NET INCREASE IN CASH AND CASH EQUIVALENTS 24,422,905 12,137,863 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 553,391,696 541,253,833 CASH AND CASH EQUIVALENTS, END OF YEAR $ 577,814,601 $ 553,391,696 The accompanying notes are an integral part of the consolidated financial statements. (Concluded) - 16 - Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise) 1. GENERAL Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. On September 5, 1994, TSMC’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs). The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. The principal operating activities of TSMC’s subsidiaries are described in Note 4. 2. THE AUTHORIZATION OF FINANCIAL STATEMENTS The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on February 19, 2019. 3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on TSMC and its subsidiaries’ (collectively as the “Company”) accounting policies: 1) IFRS 9 “Financial Instruments” and related amendment IFRS 9 supersedes IAS 39 “Financial Instruments: Recognition and Measurement”, with consequential amendments to IFRS 7 “Financial Instruments: Disclosures” and other standards. IFRS 9 sets out the requirements for classification, measurement and impairment of financial assets and hedge accounting. Please refer to Note 4 for information relating to the relevant accounting policies. Classification, measurement and impairment of financial assets and financial liabilities The Company elects not to restate prior reporting period when applying the requirements for the classification, measurement and impairment of financial assets and financial liabilities under IFRS 9 with the cumulative effect of the initial application recognized at the date of initial application. - 17 - The impact on measurement categories, carrying amount and related reconciliation for each class of the Company’s financial assets and financial liabilities when retrospectively applying IFRS 9 on January 1, 2018 is detailed below: Measurement Category Carrying Amount IAS 39 IFRS 9 IAS 39 IFRS 9 Note Financial Assets Cash and cash equivalents Derivatives Loans and receivables Held for trading Equity securities Hedging instruments Available-for-sale Debt securities Available-for-sale Held-to-maturity Loans and receivables Amortized cost Mandatorily at fair value through profit or loss (FVTPL) Hedging instruments Fair value through other comprehensive income (FVTOCI) Mandatorily at FVTPL FVTOCI Amortized cost Amortized cost $ 553,391,696 $ 553,391,696 (1) 569,751 34,394 569,751 34,394 7,422,311 - 90,826,099 20,821,714 8,389,438 779,489 90,046,610 20,813,462 131,024,958 131,269,731 (2) (3) (3) (4) (1) Held for trading Hedging instruments Amortized cost Held for trading Hedging instruments Amortized cost 26,709 15,562 340,501,266 340,501,266 26,709 15,562 Notes and accounts receivable (including related parties), other receivables and refundable deposits Financial Liabilities Derivatives Short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable and guarantee deposits Carrying Amount as of December 31, 2017 (IAS 39) Reclassifi- cations Remea- surements Carrying Amount as of January 1, 2018 (IFRS 9) Retained Earnings Effect on January 1, 2018 Other Equity Effect on January 1, 2018 Note $ 569,751 $ - $ - 779,489 569,751 - 779,489 - - - - - $ 569,751 $ - $ - 779,489 (10,085 ) 10,085 (3) 1,349,240 - (10,085 ) - 10,085 - - - - - - - 7,422,311 967,127 8,389,438 1,294,528 (325,858 ) (2) 90,046,610 - 90,046,610 (30,658 ) 30,658 (3) 97,468,921 - 20,821,714 967,127 - 98,436,048 - (8,252 ) 20,813,462 1,263,870 - (8,252 ) 684,416,654 244,773 684,661,427 244,773 - 34,394 705,238,368 - 236,521 705,474,889 34,394 - 236,521 - (295,200 ) (4) (1) - - - - - Financial Assets FVTPL - Debt instruments Add: From available for sale FVTOCI - Equity instruments Add: From available for sale - Debt instruments Add: From available for sale Amortized cost Add: From held to maturity Add: From loans and receivables Hedging instruments Total $ 604,145 $ 803,486,778 $ 1,203,648 $ 805,294,571 $ 1,490,306 $ (285,115 ) Carrying Amount as of December 31, 2017 (IAS 39) Adjustments Arising from Initial Application Carrying Amount as of January 1, 2018 (IFRS 9) Retained Earnings Effect on January 1, 2018 Other Equity Effect on January 1, 2018 Note Investments accounted for using equity method $ 17,861,488 $ 8,259 $ 17,869,747 $ 33,985 $ (25,726) (5) - 18 - (1) Cash and cash equivalents, notes and accounts receivable (including related parties), other receivables and refundable deposits that were classified as loans and receivables under IAS 39 are now classified at amortized cost with assessment of future 12-month or lifetime expected credit loss under IFRS 9. As a result of retrospective application, the adjustments would result in a decrease in loss of allowance for accounts receivable of NT$244,773 thousand and an increase in retained earnings of NT$244,773 thousand on January 1, 2018. (2) As equity investments that were previously classified as available-for-sale financial assets under IAS 39 are not held for trading, the Company elected to designate all of these investments as at FVTOCI under IFRS 9. As a result, the related other equity-unrealized gain or loss on available-for-sale financial assets of NT$228,304 thousand is reclassified to increase other equity - unrealized gain or loss on financial assets at FVTOCI. As equity investments previously measured at cost under IAS 39 are remeasured at fair value under IFRS 9, the adjustments would result in an increase in financial assets at FVTOCI of NT$967,127 thousand, an increase in other equity-unrealized gain or loss on financial assets at FVTOCI of NT$968,670 thousand and a decrease in non-controlling interests of NT$1,543 thousand on January 1, 2018. For those equity investments previously classified as available-for-sale financial assets (including measured at cost financial assets) under IAS 39, the impairment losses that the Company had recognized have been accumulated in retained earnings. Since these investments were designated as at FVTOCI under IFRS 9 and no impairment assessment is required, the adjustments would result in a decrease in other equity - unrealized gain or loss on financial assets at FVTOCI of NT$1,294,528 thousand and an increase in retained earnings of NT$1,294,528 thousand on January 1, 2018. (3) Debt investments were previously classified as available-for-sale financial assets under IAS 39. Under IFRS 9, except for debt instruments of NT$779,489 thousand whose contractual cash flows are not solely payments of principal and interest on the principal outstanding and therefore are classified as at FVTPL with the related other equity-unrealized gain or loss on available-for-sale financial assets of NT$10,085 thousand being consequently reclassified to decrease retained earnings, the remaining debt investments are classified as at FVTOCI with assessment of future 12-month expected credit loss because these investments are held within a business model whose objective is both to collect the contractual cash flows and sell the financial assets. The related other equity-unrealized gain or loss on available-for-sale financial assets of NT$434,403 thousand is reclassified to decrease other equity-unrealized gain or loss on financial assets at FVTOCI. As a result of retrospective application of future 12-month expected credit loss, the adjustments would result in an increase in other equity - unrealized gain or loss on financial assets at FVTOCI of NT$30,658 thousand and a decrease in retained earnings of NT$30,658 thousand on January 1, 2018. (4) Debt investments previously classified as held-to-maturity financial assets and measured at amortized cost under IAS 39 are classified as measured at amortized cost with assessment of future 12-month expected credit loss under IFRS 9 because the contractual cash flows are solely payments of principal and interest on the principal outstanding and these investments are held within a business model whose objective is to collect the contractual cash flows. As a result of retrospective application of future 12-month expected credit loss, the adjustments would result in an increase in loss allowance of NT$8,252 thousand and a decrease in retained earnings of NT$8,252 thousand on January 1, 2018. - 19 - (5) With the retrospective adoption of IFRS 9 by associates accounted for using equity method, the corresponding adjustments made by the Company would result in an increase in investments accounted for using equity method of NT$8,259 thousand, a decrease in other equity- unrealized gain or loss on financial assets at FVTOCI of NT$23,616 thousand, a decrease in other equity- unrealized gain or loss on available-for-sale financial assets of NT$2,110 thousand and an increase in retained earnings of NT$33,985 thousand on January 1, 2018. Hedge accounting The Company prospectively applies the requirements for hedge accounting upon initial application of IFRS 9. In addition, due to the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, all derivative and non-derivative financial assets and financial liabilities which are designated as hedging instruments are presented as financial assets and financial liabilities for hedging starting 2018. 2) IFRS 15 “Revenue from Contracts with Customers” and related amendments IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and will supersede IAS 18, “Revenue,” IAS 11, “Construction Contracts,” and a number of revenue-related interpretations. Please refer to Note 4 for information relating to the relevant accounting policies. The Company elected only to retrospectively apply IFRS 15 to contracts that were not completed on January 1, 2018 and elected not to restate prior reporting period with the cumulative effect of the initial application recognized at the date of initial application. The impact on assets, liabilities and equity when retrospectively applying IFRS 15 on January 1, 2018 is detailed below: Carrying Amount as of December 31, 2017 (IAS 18 and Revenue-related Interpretations) Adjustments Arising from Initial Application Carrying Amount as of January 1, 2018 (IFRS 15) Note Inventories Contract assets Investments accounted for using equity method $ 73,880,747 $ - (19,745) $ 73,861,002 34,177 34,177 (1) (1) 17,861,488 19,483 17,880,971 (1) Total effect on assets $ 33,915 Provisions - current Accrued expenses and other current liabilities 13,961,787 $ (13,961,787) - (2) 65,588,396 13,961,787 79,550,183 (2) Total effect on liabilities $ - Retained earnings Non-controlling interests 1,233,362,010 $ 702,110 32,030 1,233,394,040 703,995 1,885 (1) (1) Total effect on equity $ 33,915 - 20 - (1) Prior to the application of IFRS 15, the Company recognizes revenue based on the accounting treatment of the sales of goods. Under IFRS 15, certain subsidiaries and associates accounted for using equity method will change to recognize revenue over time because customers are deemed to have control over the products when the products are manufactured. As a result, the Company will recognize contract assets (classified under other current assets) and adjust related assets and equity accordingly. (2) Prior to the application of IFRS 15, the Company recognized the estimation of sales returns and allowance as provisions. Under IFRS 15, the Company recognizes such estimation as refund liability (classified under accrued expenses and other current liabilities). The following table shows the amount affected in the current period by the application of IFRS 15 as compared to IAS 18: Impact on Assets, Liabilities and Equity Decrease in inventories Increase in contract assets Increase in investments accounted for using equity method Total effect on assets Decrease in provisions - current Increase in accrued expenses and other current liabilities Increase in income tax payable Total effect on liabilities Increase in retained earnings Increase in non-controlling interests Total effect on equity Impact on Total Comprehensive Income Increase in net revenue Increase in cost of revenue Increase in share of the profit or loss of associates Increase in income tax expense Increase in net income for the year Increase in net income/total comprehensive income attributable to: Shareholders of the parent Non-controlling interests - 21 - December 31, 2018 $ (29,610) 52,470 15,163 $ 38,023 $ (22,672,634) 22,671,587 4,781 $ $ 3,734 31,791 2,498 $ 34,289 Year Ended December 31, 2018 $ 53,517 (29,610) 15,163 (4,781) $ 34,289 $ 31,791 2,498 $ 34,289 3) Please refer to Note 34 for the disclosure of amendment to IAS 7 “Disclosure Initiative” b. Amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers for application starting from 2019 and the IFRSs issued by IASB and endorsed by FSC with effective date starting 2019 New, Amended or Revised Standards and Interpretations (the “New IFRSs”) Effective Date Announced by IASB (Note 1) Annual Improvements to IFRSs 2015-2017 Cycle Amendments to IFRS 9 “Prepayment Features with Negative Compensation” IFRS 16 “Leases” Amendments to IAS 19 “Plan Amendment, Curtailment or January 1, 2019 January 1, 2019 (Note 2) January 1, 2019 January 1, 2019 (Note 3) Settlement” Amendments to IAS 28 “Long-term Interests in Associates and Joint January 1, 2019 Ventures” IFRIC 23 “Uncertainty over Income Tax Treatments” January 1, 2019 Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates. Note 2: The FSC permits the election for early adoption of the amendments starting from 2018. Note 3: The Company shall apply these amendments to plan amendments, curtailments or settlements occurring on or after January 1, 2019. Except for the following items, the Company believes that the adoption of aforementioned standards or interpretations will not have a significant effect on the Company’s accounting policies. 1) IFRS 16 “Leases” IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 “Leases”, IFRIC 4 “Determining whether an Arrangement contains a Lease”, and a number of related interpretations. Definition of a lease Upon initial application of IFRS 16, the Company will apply the guidance of IFRS 16 in determining whether contracts are, or contain, a lease only to contracts entered into (or changed) on or after January 1, 2019. Contracts identified as containing a lease under IAS 17 and IFRIC 4 will not be reassessed and will be accounted for in accordance with the transitional provisions under IFRS 16. The Company as lessee Upon initial application of IFRS 16, except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Company will recognize right-of-use assets and lease liabilities for all leases on the consolidated balance sheets. On the consolidated statements of comprehensive income, the Company will present the depreciation expense charged on right-of-use assets separately from the interest expense accrued on lease liabilities and computed using the effective interest method. On the consolidated statements of cash flows, cash payments for both the principal portion and the interest portion of lease liabilities are classified within financing activities. - 22 - Upon initial application of IFRS 16, the Company will apply IFRS 16 retrospectively with the cumulative effect of the initial application recognized at the date of initial application but will not restate comparative information. Leases agreements classified as operating leases under IAS 17, except for leases of low-value asset and short-term leases, will be measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments. Right-of-use assets are subject to impairment testing under IAS 36. The Company will apply the following practical expedients to measure right-of-use assets and lease liabilities on January 1, 2019 : a) The Company will apply a single discount rate to a portfolio of leases with reasonably similar characteristics to measure lease liabilities. b) The Company will account for those leases for which the lease term ends on or before December 31, 2019 as short-term leases. c) Except for lease payment, the Company will exclude incremental costs of obtaining the lease from the measurement of right-of-use assets on January 1, 2019. d) The Company will determine lease terms (e.g. lease periods) based on the projected status on January 1, 2019, to measure lease liabilities. The weighted average lessee’s incremental borrowing rate used by the Company to calculate lease liabilities recognized on January 1, 2019 is 1.46%. The reconciliation between the lease liabilities recognized and the future minimum lease payments of non-cancellable operating lease on December 31, 2018 is presented as follows: The future minimum lease payments of non-cancellable operating lease on December 31, 2018 Less: Recognition exemption for short-term leases Undiscounted gross amounts on January 1, 2019 Discounted using the incremental borrowing rate on January 1, 2019 Add: Adjustments as a result of a different treatment of extension and purchase options Lease liabilities recognized on January 1, 2019 The Company as lessor $ 20,849,585 (3,189,821) $ 17,659,764 $ 16,465,599 3,438,016 $ 19,903,615 Except for sublease transactions, the Company will not make any adjustments for leases in which it is a lessor, and will account for those leases under IFRS 16 starting from January 1, 2019. On the basis of the remaining contractual terms and conditions on January 1, 2019, all of the Company’s subleases will be classified as operating leases. - 23 - Impact on assets, liabilities and equity on January 1, 2019 Carrying Amount as of December 31, 2018 Adjustments Arising from Initial Application Adjusted Carrying Amount as of January 1, 2019 Other current assets Right-of-use assets Other noncurrent assets Total effect on assets $ 5,406,423 - 1,584,647 Accrued expenses and other current liabilities Lease liabilities - noncurrent Other noncurrent liabilities 61,760,619 - 1,950,989 $ 20,082,875 (118,242) $ 5,288,181 20,082,875 1,507,476 (77,171) $ 19,887,462 $ 2,627,334 17,269,317 64,387,953 17,269,317 1,941,800 (9,189) Total effect on liabilities Total effect on equity $ 19,887,462 $ - c. The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC New, Revised or Amended Standards and Interpretations Effective Date Issued by IASB Amendments to IFRS 3 “Definition of a Business” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets January 1, 2020 (Note 1) To be determined by IASB between an Investor and its Associate or Joint Venture” Amendments to IAS 1 and IAS 8 “Definition of Material” January 1, 2020 (Note 2) Note 1: The Company shall apply these amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Note 2: The Company shall apply these amendments prospectively for annual reporting periods beginning on or after January 1, 2020. As of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation. 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall prevail. - 24 - Statement of Compliance The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed by the FSC with the effective dates (collectively, “Taiwan-IFRSs”). Basis of Preparation The accompanying consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets. Basis of Consolidation The basis for the consolidated financial statements The consolidated financial statements incorporate the financial statements of TSMC and entities controlled by TSMC (its subsidiaries). Income and expenses of subsidiaries acquired or disposed of are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to shareholders of the parent. When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between: a. the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and b. the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest. The Company shall account for all amounts recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the Company had directly disposed of the related assets and liabilities. The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate. - 25 - The subsidiaries in the consolidated financial statements The detail information of the subsidiaries at the end of reporting period was as follows: Establishment and Operating Location Percentage of Ownership December 31, 2018 December 31, 2017 Note Name of Investor Name of Investee Main Businesses and Products TSMC TSMC North America Selling and marketing of integrated circuits and other semiconductor devices TSMC Europe B.V. (TSMC Customer service and supporting Europe) TSMC Japan Limited (TSMC Japan) activities Customer service and supporting activities San Jose, California, U.S.A. Amsterdam, the Netherlands Yokohama, Japan TSMC Korea Limited (TSMC Customer service and supporting Seoul, Korea Korea) activities TSMC Partners, Ltd. (TSMC Investing in companies involved in the Partners) design, manufacture, and other related business in the semiconductor industry and other investment activities Tortola, British Virgin Islands TSMC Global, Ltd. (TSMC Investment activities Global) TSMC China Company Manufacturing, selling, testing and Tortola, British Virgin Islands Shanghai, China Limited (TSMC China) computer-aided design of integrated circuits and other semiconductor devices 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% TSMC Nanjing Company Manufacturing, selling, testing and Nanjing, China 100% 100% Limited (TSMC Nanjing) VisEra Technologies Company Ltd. (VisEra Tech) computer-aided design of integrated circuits and other semiconductor devices Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter Hsin-Chu, Taiwan 87% 87% TSMC Partners VentureTech Alliance Fund II, Investing in new start-up technology Cayman Islands L.P. (VTAF II) companies VentureTech Alliance Fund III, Investing in new start-up technology Cayman Islands L.P. (VTAF III) companies TSMC Solar Europe GmbH TSMC Development, Inc. (TSMC Development) TSMC Technology, Inc. (TSMC Technology) TSMC Design Technology Canada Inc. (TSMC Canada) Selling of solar related products and providing customer service Investing in companies involved in the manufacturing related business in the semiconductor industry Engineering support activities Hamburg, Germany Delaware, U.S.A. Delaware, U.S.A. Engineering support activities Ontario, Canada InveStar Semiconductor Investing in new start-up technology Cayman Islands Development Fund, Inc. (ISDF) companies 98% 98% 100% 100% 100% 100% 97% 98% 98% 100% 100% 100% 100% 97% - a) a) a) a) - - b) - a) a) a) , c) - a) a) a) , c) InveStar Semiconductor Investing in new start-up technology Cayman Islands 97% 97% a) , c) Development Fund, Inc. (II) LDC. (ISDF II) companies TSMC Development WaferTech, LLC (WaferTech) Manufacturing, selling and testing of integrated circuits and other semiconductor devices Washington, U.S.A. 100% 100% VTAF III Growth Fund Limited (Growth Investing in new start-up technology Cayman Islands 100% 100% Fund) companies - a) Note a: This is an immaterial subsidiary for which the consolidated financial statements are not audited by the Company’s independent auditors. Note b: Under the investment agreement entered into with the municipal government of Nanjing, China, the Company will make an investment in Nanjing in the amount of approximately US$3 billion to establish a subsidiary operating a 300mm wafer fab with the capacity of 20,000 12-inch wafers per month, and a design service center. Note c: The subsidiary is under liquidation procedures. Foreign Currencies The financial statements of each individual consolidated entity were expressed in the currency which reflected its primary economic environment (functional currency). The functional currency of TSMC and presentation currency of the consolidated financial statements are both New Taiwan Dollars (NT$). In preparing the consolidated financial statements, the operating results and financial positions of each consolidated entity are translated into NT$. In preparing the financial statements of each individual consolidated entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are - 26 - included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated. For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). Classification of Current and Noncurrent Assets and Liabilities Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or consumed within one year from the end of the reporting period. Current liabilities are obligations incurred for trading purposes and obligations expected to be settled within one year from the end of the reporting period. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively. Cash Equivalents Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time deposits and investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Financial Instruments Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Financial Assets The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Regular way purchases or sales of financial assets are recognized and derecognized on a trade date or settlement date basis for which financial assets were classified in the same way, respectively. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. a. Category of financial assets and measurement 2018 Financial assets are classified into the following categories: financial assets at FVTPL, investments in debt instruments and equity instruments at FVTOCI, and financial assets at amortized cost. - 27 - 1) Financial asset at FVTPL For certain financial assets which include debt instruments that do not meet the criteria of amortized cost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arising from remeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest earned on the financial asset. 2) Investments in debt instruments at FVTOCI Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of collecting contractual cash flows and selling the financial assets, are measured at FVTOCI. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when these debt instruments are disposed. 3) Investments in equity instruments at FVTOCI On initial recognition, the Company may irrevocably designate investments in equity investments that is not held for trading as at FVTOCI. Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the Company’s rights clearly represent a recovery of part of the cost of the investment. 4) Measured at amortized cost Cash and cash equivalents, debt instrument investments, notes and accounts receivable (including related parties), other receivables and refundable deposits are measured at amortized cost. Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of holding financial assets in order to collect contractual cash flows, are measured at amortized cost. Subsequent to initial recognition, financial assets measured at amortized cost are measured at amortized cost, which equals to carrying amount determined by the effective interest method less any impairment loss. 2017 Financial assets are classified into the following specified categories: Financial assets at FVTPL, available-for-sale financial assets, held-to-maturity financial assets and loans and receivables. 1) Financial asset at FVTPL Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss. - 28 - Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. 2) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated as available-for-sale or are not classified as (a) loans and receivables, (b) held-to-maturity financial assets or (c) financial assets at fair value through profit or loss. income from Available-for-sale financial assets are measured at fair value. available-for-sale monetary financial assets and dividends on available-for-sale equity investments are recognized in profit or loss. Other changes in the carrying amount of available-for-sale financial assets are recognized in other comprehensive income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss. Interest Dividends on available-for-sale equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established. Available-for-sale equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less any identified impairment losses at the end of each reporting period. Such equity instruments are subsequently remeasured at fair value when their fair value can be reliably measured, and the difference between the carrying amount and fair value is recognized in profit or loss or other comprehensive income. 3) Held-to-maturity financial assets Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity. Subsequent to initial recognition, held-to-maturity financial assets are measured at amortized cost using the effective interest method less any impairment. 4) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables including cash and cash equivalents, notes and accounts receivable and other receivables are measured at amortized cost using the effective interest method, less any impairment, except for those loans and receivables with immaterial discounted effect. b. Impairment of financial assets 2018 At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at FVTOCI. The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument. - 29 - The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset. 2017 Financial assets, other than those carried at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Those financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, their estimated future cash flows have been affected. For financial assets carried at amortized cost, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. The Company assesses the collectability of receivables by performing the account aging analysis and examining current trends in the credit quality of its customers. For financial assets carried at amortized cost, the amount of the impairment loss is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial assets at the date the impairment loss is reversed does not exceed what the amortized cost would have been had the impairment loss not been recognized. When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss in the year. In respect of available-for-sale equity instruments, impairment losses previously recognized in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to the recognition of an impairment loss is recognized in other comprehensive income and accumulated under the heading of unrealized gains or losses from available-for-sale financial assets. For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. c. Derecognition of financial assets 2018 The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. - 30 - On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss. 2017 The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. On derecognition of a financial asset in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. Financial Liabilities and Equity Instruments Classification as debt or equity Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Financial liabilities Financial liabilities are subsequently measured either at amortized cost using effective interest method or at FVTPL. Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or is designated as at fair value through profit or loss. Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently measured at amortized cost at the end of each reporting period. Derecognition of financial liabilities The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. - 31 - Derivative Financial Instruments Derivative financial instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative financial instrument is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. Financial Instruments Designated as at Fair Value through Profit or Loss A financial instrument may be designated as at FVTPL upon initial recognition. The financial instrument forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis. Hedge Accounting a. Fair value hedge The Company designates certain hedging instruments, such as interest rate futures contracts, to partially hedge against the price risk caused by changes in interest rates in the Company’s investments in fixed income securities as fair value hedge. Changes in the fair value of hedging instrument that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset that are attributable to the hedged risk. b. Cash flow hedge The Company designates certain hedging instruments, such as forward exchange contracts and foreign currency deposits, to partially hedge its foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The effective portion of changes in the fair value of hedging instruments is recognized in other comprehensive income. When the forecast transactions actually take place, the associated gains or losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the hedged items. The gains or losses from hedging instruments relating to the ineffective portion are recognized immediately in profit or loss. 2018 The Company prospectively discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance when the hedging instrument expires or is sold, terminated or exercised. 2017 Hedge accounting was discontinued prospectively when the Company revoked the designated hedging relationship, when the hedging instrument expired or was sold, terminated, or exercised; or no longer met the criteria for hedge accounting. Inventories Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard cost and adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. - 32 - Investments Accounted for Using Equity Method Investments accounted for using the equity method are investments in associates. An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The operating results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes its share in the changes in the equities of associates. Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases. The Company discontinues the use of the equity method from the date when the Company ceases to have significant influence over an associate. When the Company retains an interest in the former associate, the Company measures the retained interest at fair value at that date. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Company shall account for all amounts recognized in other comprehensive income in relation to that associate on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. If the Company’s ownership interest in an associate is reduced as a result of disposal, but the investment continues to be an associate, the Company should reclassify to profit or loss only a proportionate amount of the gain or loss previously recognized in other comprehensive income. When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Company’s ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. When a consolidated entity transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s consolidated financial statements only to the extent of interests in the associate that are not owned by the Company. - 33 - Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment. Costs include any incremental costs that are directly attributable to the construction or acquisition of the item of property, plant and equipment. Property, plant and equipment in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other identical categories of property, plant and equipment, commences when the assets are available for their intended use. Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful lives, and it is computed using the straight-line method over the following estimated useful lives: land improvements - 20 years; buildings - 10 to 20 years; machinery and equipment - 2 to 5 years; and office equipment - 3 to 5 years. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. Land is not depreciated. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. Leases Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Company as lessor Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. The Company as lessee Operating lease payments are recognized as an expense on a straight-line basis over the lease term. Intangible Assets Goodwill Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any. Other intangible assets Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the following estimated useful lives: Technology license fees - the estimated life of the technology or the term of the technology transfer contract; software and system design costs - 3 years or contract period; patent and others - the economic life or contract period. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. - 34 - Impairment of Tangible and Intangible Assets Goodwill Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is an indication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the combination. If the recoverable amount of a cash-generating unit is less than its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods. Other tangible and intangible assets At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. Provision Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. - 35 - Guarantee Deposit Guarantee deposit mainly consists of cash received under deposit agreements with customers to ensure they have access to the Company’s specified capacity; and as guarantee of accounts receivable to ensure payment from customers. Cash received from customers is recorded as guarantee deposit upon receipt. Guarantee deposits are refunded to customers when terms and conditions set forth in the deposit agreements have been satisfied. Revenue Recognition 2018 The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods which is generally when the goods are delivered to the customers’ specified locations. Revenue from sale of goods is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns and other allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms to recognize refund liabilities, which is classified under accrued expenses and other current liabilities. In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting. 2017 Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Sale of goods Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:  The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;  The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;  The amount of revenue can be measured reliably;   The costs incurred or to be incurred in respect of the transaction can be measured reliably. It is probable that the economic benefits associated with the transaction will flow to the Company; and In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting. - 36 - Dividend and interest income Dividend income from investments is recognized when the shareholder’s right to receive payment has been established, provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. Employee Benefits Short-term employee benefits Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees. Retirement benefits For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense when the employees have rendered service entitling them to the contribution. For defined benefit retirement benefit plans, the cost of providing benefit is recognized based on actuarial calculations. Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax Income tax on unappropriated earnings (excluding earnings from foreign consolidated subsidiaries) is expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent to the year the earnings are generated. Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision. Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, net operating loss carryforwards and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. - 37 - Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Current and deferred tax for the year Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively. Government Grants Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received. Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire noncurrent assets (mainly including land use right and depreciable assets) are recognized as a deduction from the carrying amount of the related assets and recognized as a reduced depreciation or amortization charge in profit or loss over the contract period or useful lives of the related assets. Government grants that are receivables as compensation for expenses already incurred are deducted from incurred expenses in the period in which they become receivables. 5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY In the application of the aforementioned Company’s accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years. - 38 - Revenue Recognition The Company recognizes revenue when the conditions described in Note 4 are satisfied. The Company also records estimated future returns and other allowances in the same period the related revenue is recorded. Estimated sales returns and other allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms, and the Company periodically reviews the adequacy of the estimation used. Timing to commence depreciation of property, plant and equipment As described in Note 4, depreciation of property, plant and equipment begins when the assets are available for use, and in the condition necessary for the assets to be capable of operating in the intended manner. The criteria to determine whether assets are available for their intended use vary within categories of assets as well as involve subjective judgments, thus validity of the timing to commence depreciation of property, plant and equipment could have a material impact on the Company’s financial performance. Impairment of Tangible and Intangible Assets Other than Goodwill In the process of evaluating the potential impairment of tangible and intangible assets other than goodwill, the Company is required to make subjective judgments in determining the independent cash flows, useful lives, expected future revenue and expenses related to the specific asset groups with the consideration of the nature of semiconductor industry. Any changes in these estimates based on changed economic conditions or business strategies could result in significant impairment charges or reversal in future years. Impairment of Goodwill The assessment of impairment of goodwill requires the Company to make subjective judgment to determine the identified cash-generating units, allocate the goodwill to relevant cash-generating units and estimate the recoverable amount of relevant cash-generating units. Impairment Assessment on Investment Using Equity Method The Company assesses the impairment of investments accounted for using the equity method whenever triggering events or changes in circumstances indicate that an investment may be impaired and carrying value may not be recoverable. The Company measures the impairment based on a projected future cash flow of the investees, including the underlying assumptions of sales growth rate and capacity utilization rate formulated by such investees’ internal management team. The Company also takes into account market conditions and the relevant industry trends to ensure the reasonableness of such assumptions. Realization of Deferred Income Tax Assets Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets. Fair Value Measurement of Non-publicly Traded Equity Investments The fair value measurement for non-publicly traded equity investments is determined by the estimated fair value under appropriate valuation methods primarily based on investees’ financial positions, operation results and recent financing activities, the market transaction prices of similar investments, market conditions and the required discount factors. As such, the estimated fair value may be different from the actual disposal price in the future. The Company assesses the fair value quarterly based on market - 39 - conditions to ensure the appropriateness of fair value measurement of non-publicly traded equity investments. Valuation of Inventory Inventories are stated at the lower of cost or net realizable value, and the Company uses judgment and estimate to determine the net realizable value of inventory at the end of each reporting period. The Company estimates the net realizable value of inventory for obsolescence and unmarketable items at the end of reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a specific time horizon. Recognition and Measurement of Defined Benefit Plans Net defined benefit liability and the resulting defined benefit costs under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, rate of employee turnover, and future salary increase rate. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability. 6. CASH AND CASH EQUIVALENTS Cash and deposits in banks Repurchase agreements collateralized by corporate bonds Commercial paper Agency bonds December 31, 2018 December 31, 2017 $ 575,825,502 1,229,600 759,499 - $ 551,919,770 - 695,901 776,025 $ 577,814,601 $ 553,391,696 Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts of cash and were subject to an insignificant risk of changes in value. 7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets Mandatorily measured at FVTPL Agency mortgage-backed securities Forward exchange contracts Held for trading Forward exchange contracts Financial liabilities Held for trading Forward exchange contracts - 40 - December 31, 2018 December 31, 2017 $ 3,419,287 85,303 3,504,590 $ - - - - 569,751 $ 3,504,590 $ 569,751 $ 40,825 $ 26,709 The Company entered into derivative contracts to manage exposures due to fluctuations of foreign exchange rates. These derivative contracts did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for these derivative contracts. Outstanding forward exchange contracts consisted of the following: Maturity Date Contract Amount (In Thousands) December 31, 2018 Sell NT$/Buy EUR Sell NT$/Buy JPY Sell US$/Buy EUR Sell US$/Buy JPY Sell US$/Buy RMB Sell US$/Buy NT$ Sell RMB/Buy US$ December 31, 2017 Sell NT$/Buy EUR Sell NT$/Buy JPY Sell US$/Buy JPY Sell US$/Buy RMB Sell US$/Buy NT$ Sell RMB /Buy EUR Sell RMB/Buy JPY Sell RMB/Buy GBP January 2019 to March 2019 January 2019 to March 2019 January 2019 January 2019 January 2019 January 2019 to February 2019 January 2019 NT$18,545,854/EUR527,000 NT$4,757,858/JPY17,200,000 US$495/EUR434 US$175,591/JPY19,389,014 US$318,000/RMB2,188,747 US$127,000/NT$3,908,635 RMB667,539/US$97,000 January 2018 to February 2018 February 2018 January 2018 January 2018 January 2018 to February 2018 January 2018 January 2018 January 2018 NT$6,002,786/EUR169,000 NT$996,294/JPY3,800,000 US$2,191/JPY246,724 US$558,000/RMB3,679,575 US$1,661,500/NT$49,673,320 RMB38,967/EUR4,994 RMB409,744/JPY7,062,536 RMB3,637/GBP413 Investments in debt instruments at FVTOCI were classified as available-for-sale financial assets under IAS 39. Refer to Notes 3 and 9 for information relating to their reclassification and comparative information for 2017. 8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME-2018 Investments in debt instruments at FVTOCI Corporate bonds Agency bonds/Agency mortgage-backed securities Asset-backed securities Government bonds Commercial paper Investments in equity instruments at FVTOCI Non-publicly traded equity investments Publicly traded stocks - 41 - December 31, 2018 $ 40,753,582 31,288,762 15,670,295 11,151,359 107,590 98,971,588 3,910,681 590,152 4,500,833 $ 103,472,421 (Continued) Current Noncurrent December 31, 2018 $ 99,561,740 3,910,681 $ 103,472,421 (Concluded) These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as FVTOCI. For the year ended December 31, 2018, the Company sold shares of stocks for NT$840,605 thousand mainly because the strategic purpose no longer exists and the non-publicly traded investee has been merged. The related other equity-unrealized gain or loss on financial assets at FVTOCI of NT$1,193,056 thousand was transferred to decrease retained earnings. For dividends from equity investments designated as at FVTOCI recognized during the year ended December 31, 2018, please refer to Note 28. All the dividends are from investments held at the end of the reporting period. As of December 31, 2018, the cumulative loss allowance for expected credit loss of NT$29,723 thousand is recognized under investments in debt instruments at FVTOCI. Refer to Note 36 for information relating to their credit risk management and expected credit loss. Investments in equity and debt instruments at FVTOCI were classified as available-for-sale financial assets and cost methods (only for equity instruments) under IAS 39. Refer to Notes 3, 9 and 12 (only for equity instruments) for information relating to their reclassification and comparative information for 2017. 9. AVAILABLE-FOR-SALE FINANCIAL ASSETS-2017 Corporate bonds Agency bonds/Agency mortgage-backed securities Asset-backed securities Government bonds Publicly traded stocks Commercial paper December 31, 2017 $ 40,165,148 29,235,388 13,459,545 7,817,723 2,548,054 148,295 $ 93,374,153 - 42 - 10. HELD-TO-MATURITY FINANCIAL ASSETS-2017 Corporate bonds Structured product Current portion Noncurrent portion 11. FINANCIAL ASSETS AT AMORTIZED COST-2018 Corporate bonds Commercial paper Less: Allowance for impairment loss Current portion Noncurrent portion December 31, 2017 $ 19,338,764 1,482,950 $ 20,821,714 $ 1,988,385 18,833,329 $ 20,821,714 December 31, 2018 $ 19,519,941 2,294,098 (8,147) $ 21,805,892 $ 14,277,615 7,528,277 $ 21,805,892 Financial assets at amortized cost were classified as held-to-maturity financial assets under IAS 39. Refer to Notes 3 and 10 for information relating to their reclassification and comparative information for 2017. Refer to Note 36 for information relating to credit risk management and expected credit loss for financial assets at amortized cost. 12. FINANCIAL ASSETS CARRIED AT COST-2017 The Company’s investment classified as financial assets carried at cost primarily consists of non-publicly traded equity investments. Since there is a wide range of estimated fair values of the Company’s investments in non-publicly traded equity investments, the Company concludes that the fair value cannot be reliably measured and therefore should be measured at the cost less any impairment. The stock of Aquantia was listed in November 2017. Accordingly, the Company reclassified the aforementioned investment from financial assets carried at cost to available-for-sale financial assets. - 43 - 13. HEDGING FINANCIAL INSTRUMENTS 2018 Financial assets- current Cash flow hedges Forward exchange contracts Financial liabilities- current Fair value hedges Interest rate futures contracts Cash flow hedges Forward exchange contracts Fair value hedge December 31, 2018 $ 23,497 $ 153,891 1,941 $ 155,832 The Company entered into interest rate futures contracts, which are used to partially hedge against the price risk caused by changes in interest rates in the Company’s investments in fixed income securities. The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. On the basis of economic relationships, the Company expects that the value of the interest rate futures contracts and the value of the hedged financial assets will change in opposite directions in response to movements in interest rates. The main source of hedge ineffectiveness in these hedging relationships is the credit risk of the hedged financial assets, which is not reflected in the fair value of the interest rate future contracts. No other sources of ineffectiveness emerged from these hedging relationships. Amount of hedge ineffectiveness recognized in profit or loss is classified under other gains and losses. The following tables summarize the information relating to the hedges of interest rate risk as of December 31, 2018. Hedging Instruments Contract Amount (US$ in Thousands) Maturity US treasury bonds interest rate futures contracts US$ 330,300 March 2019 Hedged Items Asset Carrying Amount as of December 31, 2018 Asset Accumulated Amount of Fair Value Hedge Adjustments Financial assets at FVTOCI $ 23,229,530 $ (13,508) - 44 - The effect for the year ended December 31, 2018 is detailed below: Hedging Instruments/Hedged Items Hedging Instruments US treasury bonds interest rate futures contracts Hedged Items Financial assets at FVTOCI Cash flow hedge Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness $ 11,460 (13,846) $ (2,386) The Company entered into forward exchange contracts and foreign currency deposits to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The forward exchange contracts have maturities of 12 months or less. On the basis of economic relationships, the Company expects that the value of forward exchange contracts and foreign currency deposits and the value of hedged transactions will change in opposite directions in response to movements in foreign exchange rates. The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward exchange contracts and foreign currency deposits. No other sources of ineffectiveness emerged from these hedging relationships. For the year ended December 31, 2018, refer to Note 25(d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items. The following tables summarize the information relating to the hedges for foreign currency risk as of December 31, 2018. Hedging Instruments Forward exchange contracts Contract Amount (in Thousands) Maturity Balance in Other Equity (Continuing Hedges) NT$ 3,917,657 /EUR 112,000 February 2019 to April 2019 $ 23,601 - 45 - The effect for the year ended December 31, 2018 is detailed below: Hedged Items Hedging Instruments Forward exchange contracts Foreign currency deposits Hedged Items Forecast transaction (capital expenditures) 2017 Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness $ 34,563 6,412 $ 40,975 $ (40,975) The Company’s hedging policies for 2017 are the same as those mentioned previously in 2018, the instruments employed are as follows: Financial assets- current Fair value hedges Interest rate futures contracts Cash flow hedges Forward exchange contracts Financial liabilities- current Cash flow hedges Forward exchange contracts December 31, 2017 $ 27,016 7,378 $ 34,394 $ 15,562 The Company entered into interest rate futures contracts, which are used to partially hedge against the price risk caused by changes in interest rates in the Company’s investments in fixed income securities. The outstanding interest rate futures contracts consisted of the following: Maturity Period December 31, 2017 March 2018 Contract Amount (US$ in Thousands) US$ 169,400 The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). These contracts have maturities of 12 months or less. - 46 - Outstanding forward exchange contracts consisted of the following: Maturity Date Contract Amount (In Thousands) December 31, 2017 Sell NT$/Buy EUR February 2018 to May 2018 NT$2,649,104/EUR75,000 14. NOTES AND ACCOUNTS RECEIVABLE, NET December 31, 2018 December 31, 2017 At amortized cost Notes and accounts receivable Less: Loss allowance At FVTOCI $ 125,025,575 $ 121,604,989 (471,741) 121,133,248 - 125,018,322 3,595,069 (7,253) The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. $ 128,613,391 $ 121,133,248 2018 In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment losses on credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels. Such risk levels are determined with factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount. Aging analysis of notes and accounts receivable, net December 31, 2018 $ 113,126,484 15,006,461 472,833 4,654 2,959 $ 128,613,391 Not past due Past due Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days - 47 - Movements of the loss allowance for accounts receivable Balance at January 1, 2018 (IAS 39) Effect of retrospective application of IFRS 9 Balance at January 1, 2018 (IFRS 9) Provision (Reversal) Effect of exchange rate changes Balance at December 31, 2018 $ 471,741 (244,773) 226,968 (219,714) (1) $ 7,253 For the year ended December 31, 2018, the decrease in loss allowance was mainly due to the variations from accounts receivable balance of different risk levels. 2017 In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current financial condition of customers. Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis at the end of the reporting period is summarized in the following table. There was no impairment concern for the accounts receivable that were past due without recognizing a specific allowance for doubtful receivables since there was no significant change in the credit quality of its customers after the assessment and the Company has obtained guarantee against certain receivables. Aging analysis of notes and accounts receivable, net Neither past due nor impaired Past due but not impaired Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days December 31, 2017 $ 105,295,219 13,984,125 929,672 582,821 341,411 $ 121,133,248 Movements of the allowance for doubtful receivables Individually Assessed for Impairment Collectively Assessed for Impairment Total Balance at January 1, 2017 Reversal/Write-off Effect of exchange rate changes $ 1,848 (1,848) - $ 478,270 (6,305) $ 480,118 (8,153) (224) (224) Balance at December 31, 2017 $ - $ 471,741 $ 471,741 - 48 - 15. INVENTORIES Finished goods Work in process Raw materials Supplies and spare parts December 31, 2018 December 31, 2017 $ 11,329,802 72,071,861 15,233,877 4,595,436 $ 9,923,338 53,362,160 7,143,806 3,451,443 $ 103,230,976 $ 73,880,747 Write-down of inventories to net realizable value (excluding computer virus outbreak losses) and reversal of write-down of inventories resulting from the increase in net realizable value in the amount of NT$1,259,472 thousand and NT$840,861 thousand, respectively, were included in the cost of revenue for the years ended December 31, 2018 and 2017. Please refer to computer virus outbreak losses in Note 41. 16. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD Associates consisted of the following: Name of Associate Principal Activities Place of Incorporation and Operation Carrying Amount % of Ownership and Voting Rights Held by the Company December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Vanguard International Manufacturing, selling, packaging, Hsinchu, Taiwan $ 9,006,126 $ 8,568,344 28% 28% Semiconductor Corporation (VIS) Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) Xintec Inc. (Xintec) Global Unichip Corporation (GUC) Mutual-Pak testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks Manufacturing and selling of integrated circuits and other semiconductor devices Wafer level chip size packaging and wafer level post passivation interconnection service Researching, developing, manufacturing, testing and marketing of integrated circuits Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID Singapore 5,772,815 5,677,640 Taoyuan, Taiwan 1,764,607 2,292,100 Hsinchu, Taiwan 1,299,423 1,300,194 New Taipei, Taiwan 22,867 23,210 39% 41% 35% 39% 39% 41% 35% 39% $ 17,865,838 $ 17,861,488 Starting December 2017, the Company no longer had the majority of voting power and control over Mutual-Pak. As a result, Mutual-Pak is no longer consolidated and is accounted for using the equity method. As of December 31, 2018 and 2017, no investments in associates are individually material to the Company. Please refer to the consolidated statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material. The market prices of the investments accounted for using the equity method in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement. - 49 - Name of Associate VIS GUC Xintec December 31, 2018 December 31, 2017 $ 27,621,298 $ 9,617,699 $ 3,783,585 $ 30,638,751 $ 11,905,404 $ 9,180,759 17. PROPERTY, PLANT AND EQUIPMENT Land and Land Improvements Buildings Machinery and Equipment Office Equipment Equipment under Installation and Construction in Progress Total Cost Balance at January 1, 2018 Additions (Deductions) Disposals or retirements Effect of exchange rate changes $ 3,983,243 - - 28,110 $ 379,134,613 40,396,404 $ 2,487,752,265 247,042,281 $ (410,891 ) (405,841 ) (5,972,482 ) (61,937 ) 42,391,516 6,773,376 (790,793 ) 8,180 $ 167,353,490 5,812,340 - (254,841 ) $ 3,080,615,127 300,024,401 (7,174,166 ) (686,329 ) Balance at December 31, 2018 $ 4,011,353 $ 418,714,285 $ 2,728,760,127 $ 48,382,279 $ 172,910,989 $ 3,372,779,033 Accumulated depreciation and impairment Balance at January 1, 2018 Additions Disposals or retirements Impairment Effect of exchange rate changes $ 510,498 20,900 - - 19,177 $ 194,446,521 24,293,366 $ 1,795,448,842 258,195,315 $ (398,955 ) - 33,210 (4,773,589 ) 423,468 (15,128 ) $ 27,666,944 5,615,316 (789,993 ) - 32,862 - - - - - $ 2,018,072,805 288,124,897 (5,962,537 ) 423,468 70,121 Balance at December 31, 2018 $ 550,575 $ 218,374,142 $ 2,049,278,908 $ 32,525,129 $ - $ 2,300,728,754 Carrying amounts at December 31, 2018 Cost Balance at January 1, 2017 Additions (Deductions) Disposals or retirements Reclassification Effect of disposal of subsidiary Effect of exchange rate changes $ 3,460,778 $ 200,340,143 $ 679,481,219 $ 15,857,150 $ 172,910,989 $ 1,072,050,279 $ 4,049,292 - - - - $ 304,404,474 75,594,667 $ 2,042,867,744 458,605,807 $ (36,957 ) - - (9,552,995 ) 8,791 (51,216 ) (4,125,866 ) (66,049 ) (827,571 ) 34,729,640 8,195,896 (377,798 ) 1,507 (14,750 ) (142,979 ) $ 387,199,675 (219,902,510 ) - - (518 ) 56,843 $ 2,773,250,825 322,493,860 (9,967,750 ) 10,298 (66,484 ) (5,105,622 ) Balance at December 31, 2017 $ 3,983,243 $ 379,134,613 $ 2,487,752,265 $ 42,391,516 $ 167,353,490 $ 3,080,615,127 Accumulated depreciation and impairment Balance at January 1, 2017 Additions Disposals or retirements Reclassification Effect of disposal of subsidiary Effect of exchange rate changes $ 524,845 27,790 - - - $ 174,349,077 20,844,584 $ 1,577,377,509 229,985,588 $ (28,816 ) - - (8,114,327 ) 8,195 (42,830 ) (3,765,293 ) (42,137 ) (718,324 ) $ 23,221,707 4,938,000 (377,470 ) 1,466 (13,838 ) (102,921 ) Balance at December 31, 2017 $ 510,498 $ 194,446,521 $ 1,795,448,842 $ 27,666,944 $ - - - - - - - $ 1,775,473,138 255,795,962 (8,520,613 ) 9,661 (56,668 ) (4,628,675 ) $ 2,018,072,805 Carrying amounts at December 31, 2017 $ 3,472,745 $ 184,688,092 $ 692,303,423 $ 14,724,572 $ 167,353,490 $ 1,062,542,322 The significant part of the Company’s buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively. For the year ended December 31, 2018, the Company recognized an impairment loss of NT$423,468 thousand for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses. - 50 - 18. INTANGIBLE ASSETS Goodwill Technology License Fees Software and System Design Costs Patent and Others Total Cost Balance at January 1, 2018 Additions Disposals or retirements Effect of exchange rate changes $ 5,648,702 - - 146,786 $ 10,443,257 533,669 - (2,468 ) $ 25,186,218 4,601,885 (186,671 ) (6,949 ) $ 5,716,146 1,969,439 $ 46,994,323 7,104,993 (217,854 ) 139,491 (31,183 ) 2,122 Balance at December 31, 2018 $ 5,795,488 $ 10,974,458 $ 29,594,483 $ 7,656,524 $ 54,020,953 Accumulated amortization and impairment Balance at January 1, 2018 Additions Disposals or retirements Effect of exchange rate changes $ $ - - - - 7,694,857 1,063,616 - (2,468 ) $ 20,376,693 2,835,265 (186,615 ) (1,845 ) $ 4,747,633 522,524 (31,183 ) 339 $ 32,819,183 4,421,405 (217,798 ) (3,974 ) Balance at December 31, 2018 $ - $ 8,756,005 $ 23,023,498 $ 5,239,313 $ 37,018,816 Carrying amounts at December 31, 2018 $ 5,795,488 $ 2,218,453 $ 6,570,985 $ 2,417,211 $ 17,002,137 Cost Balance at January 1, 2017 Additions Retirements Reclassification Effect of disposal of subsidiary Effect of exchange rate changes $ $ 6,007,975 - - - (13,499 ) (345,774 ) 9,546,007 897,861 - - - (611 ) $ 22,243,595 3,021,085 $ (75,237 ) 7,662 (7,662 ) (3,225 ) 5,386,435 349,265 - (17,960 ) - (1,594 ) $ 43,184,012 4,268,211 (75,237 ) (10,298 ) (21,161 ) (351,204 ) Balance at December 31, 2017 $ 5,648,702 $ 10,443,257 $ 25,186,218 $ 5,716,146 $ 46,994,323 Accumulated amortization and impairment Balance at January 1, 2017 Additions Retirements Reclassification Impairment Effect of disposal of subsidiary Effect of exchange rate changes $ $ - - - - 13,520 (13,499 ) (21 ) 6,147,200 1,548,263 - - - - (606 ) $ 18,144,428 2,310,742 $ (75,237 ) 7,409 - (7,554 ) (3,095 ) 4,277,538 487,731 - (17,070 ) - - (566 ) $ 28,569,166 4,346,736 (75,237 ) (9,661 ) 13,520 (21,053 ) (4,288 ) Balance at December 31, 2017 $ - $ 7,694,857 $ 20,376,693 $ 4,747,633 $ 32,819,183 Carrying amounts at December 31, 2017 $ 5,648,702 $ 2,748,400 $ 4,809,525 $ 968,513 $ 14,175,140 The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rates of 9.0% and 8.5% in its test of impairment as of December 31, 2018 and 2017, respectively, to reflect the relevant specific risk in the cash-generating unit. For the year ended December 31, 2018, the Company did not recognize any impairment loss on goodwill. For the year ended December 31, 2017, the Company assessed goodwill impairment and recognized an impairment loss of NT$13,520 thousand related to a subsidiary since the operating result of this cash generating unit was not as expected and the recoverable amount of goodwill was nil. Such impairment loss was recognized in other operating income and expenses. - 51 - 19. OTHER ASSETS Tax receivable Prepaid expenses Others Current portion Noncurrent portion 20. SHORT-TERM LOANS Unsecured loans Amount Original loan content US$ (in thousands) EUR (in thousands) Annual interest rate Maturity date 21. PROVISIONS December 31, 2018 December 31, 2017 $ 3,780,293 1,298,710 1,912,067 $ 4,021,602 1,559,963 1,623,995 $ 6,991,070 $ 7,205,560 $ 5,406,423 1,584,647 $ 4,222,440 2,983,120 $ 6,991,070 $ 7,205,560 December 31, 2018 December 31, 2017 $ 88,754,640 $ 63,766,850 $ 2,610,000 242,000 0.01%-3.22% Due by January $ 2,150,000 - 1.54%-1.82% Due by February 2019 2018 The Company’s current provisions were provisions for sales returns and allowances. Year Ended December 31, 2017 Balance, beginning of year Provision Payment Effect of exchange rate changes Balance, end of year Sales Returns and Allowances $ 18,037,789 44,833,557 (48,884,704) (24,855) $ 13,961,787 Provisions for sales returns and allowances are estimated based on historical experience and the consideration of varying contractual terms, and are recognized as a reduction of revenue in the same year of the related product sales. Starting from 2018, the Company recognizes the estimation of sales returns and allowance as refund liability (classified under accrued expenses and other current liabilities) upon initial application of IFRS 15. - 52 - 22. BONDS PAYABLE Domestic unsecured bonds Overseas unsecured bonds Less: Discounts on bonds payable Less: Current portion December 31, 2018 December 31, 2017 $ 91,800,000 - 91,800,000 - $ 116,100,000 34,107,850 150,207,850 (6,728) (58,401,122) (34,900,000) The major terms of domestic unsecured bonds are as follows: Issuance Tranche Issuance Period Total Amount Coupon Rate Repayment and Interest Payment $ 56,900,000 $ 91,800,000 100-1 100-2 101-1 101-2 101-3 101-4 102-1 102-2 102-3 B A B A B A B - A B C A B C A B A B September 2011 to September 2018 January 2012 to January 2017 January 2012 to January 2019 August 2012 to August 2017 August 2012 to August 2019 September 2012 to September 2017 September 2012 to September 2019 October 2012 to October 2022 January 2013 to January 2018 January 2013 to January 2020 January 2013 to January 2023 February 2013 to February 2018 February 2013 to February 2020 February 2013 to February 2023 $ 7,500,000 1.63% Bullet repayment; interest payable annually 10,000,000 1.29% The same as above 7,000,000 1.46% The same as above 9,900,000 1.28% The same as above 9,000,000 1.40% The same as above 12,700,000 1.28% The same as above 9,000,000 1.39% The same as above 4,400,000 1.53% The same as above 10,600,000 1.23% The same as above 10,000,000 1.35% The same as above 3,000,000 1.49% The same as above 6,200,000 1.23% The same as above 11,600,000 1.38% The same as above 3,600,000 1.50% The same as above July 2013 to July 2020 10,200,000 3,500,000 July 2013 to July 2023 4,000,000 August 2013 to August 2017 August 2013 to August 2019 8,500,000 1.50% 1.70% 1.34% The same as above The same as above The same as above 1.52% The same as above (Continued) - 53 - Issuance Tranche Issuance Period Total Amount Coupon Rate Repayment and Interest Payment 102-4 102-4 B C D E F September 2013 to September 2017 September 2013 to March 2019 $ 1,500,000 1.45% 1,400,000 1.60% Bullet repayment; interest payable annually Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity) September 2013 to March 2021 September 2013 to March 2023 September 2013 to September 2023 2,600,000 1.85% The same as above 5,400,000 2.05% The same as above 2,600,000 2.10% Bullet repayment; interest payable annually (Concluded) The major terms of overseas unsecured bonds are as follows: Issuance Period Total Amount (US$ in Thousands) Coupon Rate Repayment and Interest Payment April 2013 to April 2018 US$1,150,000 1.625% Bullet repayment; interest payable semi-annually 23. RETIREMENT BENEFIT PLANS a. Defined contribution plans The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, TSMC, Mutual-Pak and VisEra Tech have made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Furthermore, TSMC North America, TSMC China, TSMC Nanjing, TSMC Europe, TSMC Canada, TSMC Technology and TSMC Solar Europe GmbH also make monthly contributions at certain percentages of the basic salary of their employees. Accordingly, the Company recognized expenses of NT$2,568,945 thousand and NT$2,369,940 thousand for the years ended December 31, 2018 and 2017, respectively. - 54 - b. Defined benefit plans TSMC has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds. Amounts recognized in respect of these defined benefit plans were as follows: Current service cost Net interest expense Components of defined benefit costs recognized in profit or loss Remeasurement on the net defined benefit liability: Return on plan assets (excluding amounts included in net interest expense) Actuarial loss arising from experience adjustments Actuarial loss (gain) arising from changes in financial assumptions Components of defined benefit costs recognized in other comprehensive income Years Ended December 31 2018 2017 $ $ 137,758 144,108 281,866 145,026 126,525 271,551 (71,288) 334,630 29,290 483,846 597,820 (258,455) 861,162 254,681 Total $ 1,143,028 $ 526,232 The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories: Cost of revenue Research and development expenses General and administrative expenses Marketing expenses Years Ended December 31 2018 2017 $ 177,772 79,143 20,591 4,360 $ 175,357 75,340 16,669 4,185 $ 281,866 $ 271,551 The amounts arising from the defined benefit obligation of the Company were as follows: December 31, 2018 December 31, 2017 Present value of defined benefit obligation Fair value of plan assets $ 13,662,684 (4,011,279) $ 12,774,593 (3,923,889) Net defined benefit liability $ 9,651,405 $ 8,850,704 - 55 - Movements in the present value of the defined benefit obligation were as follows: Balance, beginning of year Current service cost Interest expense Remeasurement: Actuarial loss arising from experience adjustments Actuarial loss (gain) arising from changes in financial assumptions Benefits paid from plan assets Benefits paid directly by the Company Years Ended December 31 2018 2017 $ 12,774,593 137,758 207,804 $ 12,480,480 145,026 185,561 334,630 483,846 597,820 (274,326) (115,595) (258,455) (261,865) - Balance, end of year $ 13,662,684 $ 12,774,593 Movements in the fair value of the plan assets were as follows: Balance, beginning of year Interest income Remeasurement: Years Ended December 31 2018 2017 $ 3,923,889 63,696 $ 3,929,072 59,036 Return on plan assets (excluding amounts included in net interest expense) Contributions from employer Benefits paid from plan assets 71,288 226,732 (274,326) (29,290) 226,936 (261,865) Balance, end of year $ 4,011,279 $ 3,923,889 The fair value of the plan assets by major categories at the end of reporting period was as follows: Cash Equity instruments Debt instruments December 31, 2018 December 31, 2017 $ 756,126 2,148,040 1,107,113 $ 707,477 1,993,336 1,223,076 $ 4,011,279 $ 3,923,889 The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the actuarial valuation were as follows: Discount rate Future salary increase rate Measurement Date December 31, 2018 December 31, 2017 1.30% 3.00% 1.65% 3.00% - 56 - Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks: 1) Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets. Assuming a hypothetical decrease in interest rate at the end of the reporting period contributed to a decrease of 0.5% in the discount rate and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$921,750 thousand and NT$890,116 thousand as of December 31, 2018 and 2017, respectively. 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation. Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$901,629 thousand and NT$873,801 thousand as of December 31, 2018 and 2017, respectively. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability. The Company expects to make contributions of NT$233,534 thousand to the defined benefit plans in the next year starting from December 31, 2018. The weighted average duration of the defined benefit obligation is 13 years. 24. GUARANTEE DEPOSITS Capacity guarantee Receivables guarantee Others Current portion (classified under accrued expenses and other current liabilities) Noncurrent portion - 57 - December 31, 2018 December 31, 2017 $ 9,289,628 653,686 245,731 $ 13,346,550 2,427,548 306,521 $ 10,189,045 $ 16,080,619 $ 6,835,667 3,353,378 $ 8,493,829 7,586,790 $ 10,189,045 $ 16,080,619 Some of guarantee deposits were refunded to customers by offsetting related accounts receivable. 25. EQUITY a. Capital stock Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital December 31, 2018 December 31, 2017 28,050,000 $ 280,500,000 25,930,380 $ 259,303,805 28,050,000 $ 280,500,000 25,930,380 $ 259,303,805 A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends. The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options. As of December 31, 2018, 1,068,157 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was 5,340,787 thousand shares (one ADS represents five common shares). b. Capital surplus Additional paid-in capital From merger From convertible bonds From share of changes in equities of subsidiaries From share of changes in equities of associates Donations December 31, 2018 December 31, 2017 $ 24,184,939 22,804,510 8,892,847 121,473 282,820 29,343 $ 24,184,939 22,804,510 8,892,847 118,792 289,240 19,208 $ 56,315,932 $ 56,309,536 Under the relevant laws, the capital surplus generated from donations and the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of TSMC’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit; however, when generated from issuance of restricted shares for employees, such capital surplus may not be used for any purpose. - 58 - c. Retained earnings and dividend policy TSMC’s Articles of Incorporation provide that, when allocating the net profits for each fiscal year, TSMC shall first offset its losses in previous years and then set aside the following items accordingly: 1) Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve equals TSMC’s paid-in capital; 2) Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge; 3) Any balance left over shall be allocated according to the resolution of the shareholders’ meeting. TSMC’s Articles of Incorporation provide the policy about the profit sharing bonus to employees, please refer to Note 33. TSMC’s Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend, provided that the ratio for stock dividend shall not exceed 50% of the total distribution. Any appropriations of the profits are subject to shareholders’ approval in the following year. The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss. Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fair value through other comprehensive income financial assets, unrealized valuation gain or loss from available-for-sale financial assets, gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses. The appropriations of 2017 and 2016 earnings had been approved by TSMC’s shareholders in its meetings held on June 5, 2018 and June 8, 2017, respectively. The appropriations and dividends per share were as follows: Appropriation of Earnings For Fiscal For Fiscal Year 2016 Year 2017 Dividends Per Share (NT$) For Fiscal For Fiscal Year 2017 Year 2016 Legal capital reserve Special capital reserve Cash dividends to shareholders $ 34,311,148 26,907,527 207,443,044 $ 33,424,718 - 181,512,663 $8 $7 $ 268,661,719 $ 214,937,381 - 59 - TSMC’s appropriation of earnings for 2018 had been approved in the meeting of the Board of Directors held on February 19, 2019. The appropriation and dividends per share were as follows: Legal capital reserve Special capital reserve Cash dividends to shareholders Appropriation of Earnings For Fiscal Year 2018 Dividends Per Share (NT$) For Fiscal Year 2018 $ 35,113,088 (11,459,458) 207,443,044 $ $ 231,096,674 8 The appropriation of earnings for 2018 is to be presented for approval in the TSMC’s shareholders’ meeting to be held on June 5, 2019 (expected). d. Others Changes in others were as follows: Year Ended December 31, 2018 Foreign Currency Translation Reserve Unrealized Gain (Loss) on Financial Assets at FVTOCI Gain (Loss) on Hedging Instruments Unearned Stock-Based Compensation Total Balance, beginning of year (IFRS 9) Exchange differences arising on translation of $ (26,697,680 ) $ (524,915 ) $ 4,226 $ (10,290 ) $ (27,228,659 ) foreign operations 14,562,073 - Unrealized gain (loss) on financial assets at FVTOCI Equity instruments Debt instruments Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal Loss allowance adjustments from debt instruments Gain (loss) arising on changes in the fair value of hedging instruments Transferred to initial carrying amount of hedged items Share of other comprehensive income (loss) of associates Share of unearned stock-based employee compensation of associates Income tax effect - - - - - - - 93,260 - - (3,311,621 ) (1,858,054 ) 1,193,056 989,138 (1,990 ) - - - - - - - - (6,766 ) - 91,828 40,975 (22,162 ) - - 562 - 14,562,073 - - - - - - - - 8,447 - (3,311,621 ) (1,858,054 ) 1,193,056 989,138 (1,990 ) 40,975 (22,162 ) 86,494 8,447 92,390 Balance, end of year $ (12,042,347 ) $ (3,429,324 ) $ 23,601 $ (1,843 ) $ (15,449,913 ) - 60 - Year Ended December 31, 2017 Foreign Currency Translation Reserve Unrealized Gain/Loss from Available-for- sale Financial Assets Cash Flow Hedges Reserve Unearned Stock-Based Employee Compensation Total Balance, beginning of year Exchange differences arising on translation of $ 1,661,237 $ 2,641 $ 105 $ - $ 1,663,983 foreign operations (28,257,449 ) - - (28,257,449 ) Changes in fair value of available-for-sale financial assets Cumulative (gain)/loss reclassified to profit or loss upon disposal of available-for-sale financial assets Gain/(loss) arising on changes in the fair value of hedging instruments Transferred to initial carrying amount of hedged items Share of other comprehensive income (loss) of associates Share of unearned stock-based employee compensation of associates Income tax effect - - - (154,680 ) (61,182 ) - - - - - - 99,534 (94,851 ) (101,468 ) 2,121 - - - - (2,974 ) - (562 ) (10,290 ) - - - - - - (154,680 ) (61,182 ) 99,534 (94,851 ) (99,347 ) (10,290 ) (3,536 ) Balance, end of year $ (26,697,680 ) $ (214,074 ) $ 4,226 $ (10,290 ) $ (26,917,818 ) The aforementioned other equity includes the changes in other equities of TSMC and TSMC’s share of its subsidiaries and associates. 26. NET REVENUE a. Disaggregation of revenue from contracts with customers Product Wafer Others Geography Taiwan United States China Europe, the Middle East and Africa Japan Others Year Ended December 31, 2018 $ 911,296,364 120,177,193 $ 1,031,473,557 Year Ended December 31, 2018 $ 78,260,773 632,821,464 175,794,228 71,068,438 58,125,879 15,402,775 $ 1,031,473,557 The Company categorized the net revenue mainly based on the countries where the customers are headquartered. - 61 -  Application Type Communication Industrial/Standard Computer Consumer Resolution 7-nanometer 10-nanometer 16/20-nanometer 28-nanometer 40/45-nanometer 65-nanometer 90-nanometer 0.11/0.13 micron 0.15/0.18 micron 0.25 micron and above  Wafer revenue b. Contract balances Year Ended December 31, 2018 $ 578,923,664 234,153,360 144,614,153 73,782,380 $ 1,031,473,557 Year Ended December 31, 2018 $ 81,680,746 96,989,486 210,989,033 178,440,396 101,801,017 76,122,259 36,652,061 20,677,658 81,182,646 26,761,062 $ 911,296,364 December 31, 2018 January 1, 2018 Contract liabilities (classified under accrued expenses and other current liabilities) $ 4,684,024 $ 32,434,829 The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment. For the year ended December 31, 2018, the Company recognized NT$31,769,970 thousand as revenue from the beginning balance of contract liability. c. Refund liabilities Estimated sales returns and other allowances is made and adjusted based on historical experience and the consideration of varying contractual terms, which amounted to NT$55,405,973 thousand for the year ended December 31, 2018. As of December 31, 2018, the aforementioned refund liabilities amounted to NT$22,672,634 thousand (classified under accrued expenses and other current liabilities). - 62 - Years Ended December 31 2018 2017 $ (1,005,644) (423,468) (672,337) $ (1,097,908) - (267,603) $ (2,101,449) $ (1,365,511) Years Ended December 31 2018 2017 $ 10,310,738 382,673 3,078,604 922,441 - - - 14,694,456 158,358 $ 6,412,823 - - - 2,091,435 568,552 391,896 9,464,706 145,588 $ 14,852,814 $ 9,610,294 Years Ended December 31 2018 2017 $ 1,633,775 1,417,287 161 $ 2,563,544 766,625 144 $ 3,051,223 $ 3,330,313 27. OTHER OPERATING INCOME AND EXPENSES, NET Gain (loss) on disposal or retirement of property, plant and equipment, net Impairment loss on property, plant and equipment Others 28. OTHER INCOME Interest income Bank deposits Financial assets at FVTPL Financial assets at FVTOCI Financial assets at amortized cost Available-for-sale financial assets Held-to-maturity financial assets Structured product Dividend income 29. FINANCE COSTS Interest expense Corporate bonds Bank loans Others - 63 - 30. OTHER GAINS AND LOSSES, NET Gain (loss) on disposal of financial assets, net Investments in debt instruments at FVTOCI Available-for-sale financial assets Financial assets carried at cost Gain from disposal of subsidiaries Net gain (loss) on financial instruments at FVTPL Held for trading Mandatorily measured at FVTPL Designated as at FVTPL Loss arising from fair value hedges, net Impairment loss on financial assets Financial assets carried at cost The reversal of expected credit loss of financial assets Investments in debt instruments at FVTOCI Financial assets at amortized cost Other gains (losses), net 31. INCOME TAX a. Income tax expense recognized in profit or loss Income tax expense consisted of the following: Current income tax expense Current tax expense recognized in the current year Income tax adjustments on prior years Other income tax adjustments Deferred income tax expense (benefit) Effect of tax rate changes The origination and reversal of temporary differences Years Ended December 31 2018 2017 $ (989,138) $ - - - - 76,986 12,809 17,343 (2,293,895) - 2,253,651 - 131,037 (30,293) - (2,386) - (29,603) 1,990 393 (127,768) - - 385,428 $ (3,410,804) $ 2,817,358 Years Ended December 31 2018 2017 $ 51,710,319 (989,984) 152,884 50,873,219 $ 57,503,831 (896,147) 152,790 56,760,474 (1,474,808) (3,072,554) (4,547,362) 561,818 (4,336,110) (3,774,292) Income tax expense recognized in profit or loss $ 46,325,857 $ 52,986,182 - 64 - A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows: Years Ended December 31 2018 2017 Income before tax $ 397,510,263 $ 396,133,030 Income tax expense at the statutory rate Tax effect of adjusting items: Nondeductible (deductible) items in determining taxable income Tax-exempt income Additional income tax under the Alternative Minimum Tax Act Additional income tax on unappropriated earnings Effect of tax rate changes on deferred income tax The origination and reversal of temporary differences Income tax credits Income tax adjustments on prior years Other income tax adjustments $ 80,865,915 $ 69,608,602 2,539,966 (54,543,521) 21,455,854 (1,133,641) 7,420,479 (1,474,808) (3,072,554) (6,028,374) 47,162,957 (989,984) 152,884 (1,410,955) (16,901,134) - 11,835,948 561,818 (4,336,110) (5,628,630) 53,729,539 (896,147) 152,790 Income tax expense recognized in profit or loss $ 46,325,857 $ 52,986,182 For the year ended December 31, 2017, the Company applied a tax rate of 17% for entities subject to the R.O.C. Income Tax Law. In February 2018, the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. In addition, the tax rate for 2018 unappropriated earnings was reduced from 10% to 5%. For other jurisdictions, taxes are calculated using the applicable tax rate for each individual jurisdiction. b. Income tax expense recognized in other comprehensive income Deferred income tax benefit (expense) Related to remeasurement of defined benefit obligation Related to unrealized gain/loss on investments in equity instruments at FVTOCI Related to gain/loss on cash flow hedges Related to unrealized gain/loss on available-for-sale financial assets Years Ended December 31 2018 2017 $ 103,339 $ 30,562 91,828 562 - (562) - (2,974) $ 195,729 $ 27,026 - 65 - c. Deferred income tax balance The analysis of deferred income tax assets and liabilities was as follows: Deferred income tax assets Temporary differences Depreciation Refund liability Net defined benefit liability Unrealized loss on inventories Deferred compensation cost Provision for sales returns and allowance Investments in equity instruments at FVTOCI Others Deferred income tax liabilities Temporary differences Unrealized exchange gains Available-for-sale financial assets Others December 31, 2018 December 31, 2017 $ 11,839,221 2,594,003 1,084,874 750,995 271,711 - 56,191 209,392 $ 8,401,266 - 975,324 629,442 266,521 1,637,713 - 195,197 $ 16,806,387 $ 12,105,463 $ (61,677) $ - (171,607) (169,480) (95,421) (37,304) $ (233,284) $ (302,205) Year Ended December 31, 2018 Recognized in Balance, Beginning of Year Profit or Loss Other Comprehensive Income Effect of Exchange Rate Changes Balance, End of Year Deferred income tax assets Temporary differences Depreciation Refund liability Net defined benefit liability Unrealized loss on inventories Deferred compensation cost Investments in equity instruments $ at FVTOCI Others 8,401,266 1,637,713 975,324 629,442 266,521 - 195,197 $ $ 3,430,421 954,976 6,211 120,644 (4,718 ) - 7,106 $ - - 103,339 - - 56,191 - 7,534 1,314 - 909 9,908 $ 11,839,221 2,594,003 1,084,874 750,995 271,711 - 7,089 56,191 209,392 $ 12,105,463 $ 4,514,640 $ 159,530 $ 26,754 $ 16,806,387 Deferred income tax liabilities Temporary differences Unrealized exchange gains Investments in equity instruments at FVTOCI Others $ (169,480 ) $ 107,803 $ - $ (95,421 ) (37,304 ) - (75,081 ) 95,421 (59,222 ) $ (302,205 ) $ 32,722 $ 36,199 $ - - - - $ (61,677 ) - (171,607 ) $ (233,284 ) - 66 - Deferred income tax assets Temporary differences Depreciation Provision for sales returns and allowance Net defined benefit liability Unrealized loss on inventories Deferred compensation cost Others Operating loss carryforward Deferred income tax liabilities Temporary differences Unrealized exchange gains Available-for-sale financial assets Others Year Ended December 31, 2017 Recognized in Balance, Beginning of Year Profit or Loss Other Comprehensive Income Effect of Disposal of Subsidiary Effect of Exchange Rate Changes Balance, End of Year $ 4,244,214 $ 4,207,209 $ 1,512,061 939,543 737,247 378,740 445,133 14,483 129,971 5,219 (105,068 ) (83,124 ) (222,429 ) - $ - - 30,562 - - - - - - - - - - (14,483 ) $ (50,157 ) $ 8,401,266 (4,319 ) - (2,737 ) (29,095 ) (27,507 ) - 1,637,713 975,324 629,442 266,521 195,197 - $ 8,271,421 $ 3,931,778 $ 30,562 $ (14,483 ) $ (113,815 ) $ 12,105,463 $ (48,736 ) $ (120,744 ) $ - $ (92,447 ) - - (36,742 ) (2,974 ) (562 ) $ (141,183 ) $ (157,486 ) $ (3,536 ) $ - - - - $ $ - - - - $ (169,480 ) (95,421 ) (37,304 ) $ (302,205 ) d. The investment operating loss carryforward and deductible temporary differences for which no deferred income tax assets have been recognized As of December 31, 2018 and 2017, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$20,060,918 thousand and NT$26,536,307 thousand, respectively. e. Unused tax-exemption information As of December 31, 2018, the profits generated from the following projects of TSMC are exempt from income tax for a five-year period: Construction and expansion of 2008 by TSMC Construction and expansion of 2009 by TSMC Tax-exemption Period 2015 to 2019 2018 to 2022 f. The information of unrecognized deferred income tax liabilities associated with investments As of December 31, 2018 and 2017, the aggregate taxable temporary differences associated with investments to income NT$112,893,001 thousand and NT$95,003,344 thousand, respectively. in subsidiaries not recognized as deferred liabilities amounted tax g. Income tax examination The tax authorities have examined income tax returns of TSMC through 2015. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly. - 67 - 32. EARNINGS PER SHARE Basic EPS Diluted EPS EPS is computed as follows: Years Ended December 31 2018 2017 $ 13.54 $ 13.54 $ 13.23 $ 13.23 Number of Shares (Denominator) (In Thousands) Amounts (Numerator) EPS (NT$) Year Ended December 31, 2018 Basic/Diluted EPS Net income available to common shareholders of the parent $ 351,130,884 25,930,380 $ 13.54 Year Ended December 31, 2017 Basic/Diluted EPS Net income available to common shareholders of the parent $ 343,111,476 25,930,380 $ 13.23 33. ADDITIONAL INFORMATION OF EXPENSES BY NATURE a. Depreciation of property, plant and equipment Recognized in cost of revenue Recognized in operating expenses Recognized in other operating income and expenses b. Amortization of intangible assets Recognized in cost of revenue Recognized in operating expenses Years Ended December 31 2018 2017 $ 264,804,741 $ 235,985,189 19,746,263 64,510 23,292,299 27,857 $ 288,124,897 $ 255,795,962 $ 2,073,480 $ 2,347,925 2,135,521 2,211,215 $ 4,421,405 $ 4,346,736 c. Research and development costs expensed as incurred $ 85,895,569 $ 80,732,463 - 68 - d. Employee benefits expenses Post-employment benefits Defined contribution plans Defined benefit plans Other employee benefits Years Ended December 31 2018 2017 $ 2,568,945 $ 281,866 2,850,811 2,369,940 271,551 2,641,491 105,364,132 101,488,608 Employee benefits expense summarized by function Recognized in cost of revenue Recognized in operating expenses $ 108,214,943 $ 104,130,099 $ 63,597,704 $ 61,026,107 43,103,992 44,617,239 $ 108,214,943 $ 104,130,099 According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively. TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$23,570,040 thousand and NT$23,019,082 thousand for the years ended December 31, 2018 and 2017, respectively; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. TSMC’s profit sharing bonus to employees and compensation to directors in the amounts of NT$23,570,040 thousand and NT$349,272 thousand in cash for 2018, respectively, profit sharing bonus to employees and compensation to directors in the amounts of NT$23,019,082 thousand and NT$368,919 thousand in cash for 2017, respectively, and profit sharing bonus to employees and compensation to directors in the amounts of NT$22,418,339 thousand and NT$376,432 thousand in cash for 2016, respectively, had been approved by the Board of Directors of TSMC held on February 19, 2019, February 13, 2018 and February 14, 2017, respectively. There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2018, 2017 and 2016, respectively. The information about the appropriations of TSMC’s profit sharing bonus to employees and compensation to directors is available at the Market Observation Post System website. - 69 - 34. CASH FLOW INFORMATION Reconciliation of liabilities arising from financing activities Balance as of January 1, 2018 Financing Cash Flow Non-cash changes Foreign Exchange Movement Other Changes (Note) Balance as of December 31, 2018 Short-term loans Guarantee deposits Bonds payable $ 63,766,850 16,080,619 150,201,122 $ 23,922,975 $ (279,219) (58,024,900) $ 1,064,815 423,545 (382,878) - $ (6,035,900) 6,656 88,754,640 10,189,045 91,800,000 Total $ 230,048,591 $ (34,381,144) $ 1,105,482 $ (6,029,244) $ 190,743,685 Note: Other changes include amortization of bonds payable and guarantee deposits refunded to customers by offsetting related accounts receivable. 35. CAPITAL MANAGEMENT The Company requires significant amounts of capital to build and expand its production facilities and acquire additional equipment. In consideration of the industry dynamics, the Company manages its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing operations over the next 12 months. 36. FINANCIAL INSTRUMENTS a. Categories of financial instruments Financial assets FVTPL (Note 1) FVTOCI (Note 2) Hedging financial assets Amortized cost (Note 3) Financial liabilities FVTPL (Note 4) Hedging financial liabilities Amortized cost (Note 5) December 31, 2018 $ 3,504,590 107,067,490 23,497 745,585,774 $ 856,181,351 $ 40,825 155,832 318,475,704 $ 318,672,361 Note 1: Financial assets mandatorily measured at FVTPL. Note 2: Including notes and accounts receivable, net, debt and equity investments. Note 3: Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables and refundable deposits. Note 4: Held for trading. - 70 - Note 5: Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable, and guarantee deposits. Financial assets FVTPL (Note 6) Available-for-sale financial assets (Note 7) Held-to-maturity financial assets Hedging derivative financial assets Loans and receivables (Note 8) Financial liabilities FVTPL (Note 6) Hedging derivative financial liabilities Amortized cost (Note 9) December 31, 2017 $ 569,751 98,248,410 20,821,714 34,394 684,416,654 $ 804,090,923 $ 26,709 15,562 340,501,266 $ 340,543,537 Note 6: Including held for trading and designated as at FVTPL. Note 7: Including financial assets carried at cost. Note 8: Including cash and cash equivalents, notes and accounts receivable (including related parties), other receivables and refundable deposits. Note 9: Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable and guarantee deposits. b. Financial risk management objectives The Company seeks to ensure sufficient cost-efficient funding readily available when needed. The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance. The plans for material treasury activities are reviewed by Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, Corporate Treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties. c. Market risk The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity investment prices. A portion of these risks is hedged. - 71 - Foreign currency risk Most of the Company’s revenues and expenditures are denominated in foreign currencies. Consequently, the Company is exposed to foreign currency risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Company uses derivative financial instruments, such as forward exchange contracts and cross currency swaps, and non-derivative financial instruments, such as foreign currency-denominated debt, to partially hedge the Company’s existing and certain forecasted currency exposure. These hedges will offset only a portion of, but do not eliminate, the financial impact from movements in foreign currency exchange rates. The Company’s sensitivity analysis of foreign currency risk mainly focuses on the foreign currency monetary items and the derivatives financial instruments at the end of the reporting period. Assuming an unfavorable 10% movement in the levels of foreign exchanges relative to the New Taiwan dollar, the net income for the years ended December 31, 2018 and 2017 would have decreased by NT$506,369 thousand and NT$867,910 thousand, respectively, and the other comprehensive income for the years ended December 31, 2018 and 2017 would have decreased by NT$315,571 thousand and NT$265,875 thousand, respectively. Interest rate risk The Company is exposed to interest rate risk primarily related to its outstanding debt and investments in fixed income securities. All of the Company’s bonds payable have fixed interest rates and are measured at amortized cost. As such, changes in interest rates would not affect the future cash flows. The Company classified its investments in fixed income securities as financial assets at FVTPL, financial assets at FVTOCI and financial assets at amortized costs starting from 2018; as available-for-sale and held-to-maturity financial assets in 2017. Because financial assets at amortized costs and held-to-maturity fixed income securities are measured at amortized cost, changes in interest rates would not affect the fair value. On the other hand, financial assets at FVTPL, financial assets at FVTOCI and available-for-sale fixed income securities are exposed to fair value fluctuations caused by changes in interest rates. The Company utilized interest rate futures to partially hedge the interest rate risk on its financial assets at FVTPL and financial assets at FVTOCI and available-for-sale fixed income investments. These hedges may offset only a small portion of the financial impact from movements in interest rates. Based on a sensitivity analysis performed at the end of the reporting period, an unfavorable movement of hypothetical 1.00% increase in interest rates across all maturities would have resulted in a decrease in net income by NT$247,761 thousand for the year ended December 31, 2018, and in a decrease in other comprehensive income by NT$2,449,954 thousand and NT$2,119,713 thousand for the years ended December 31, 2018 and 2017, respectively. Other price risk The Company is exposed to equity price risk for 2018 and 2017 arising from financial assets at FVTOCI and available-for-sale equity investments, respectively. Assuming a hypothetical decrease of 5% in prices of the equity investments at the end of the reporting period for the years ended December 31, 2018 and 2017, the other comprehensive income would have decreased by NT$213,550 thousand and NT$351,520 thousand, respectively. d. Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily trade receivables, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and - 72 - financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets. Business related credit risk The Company’s trade receivables are from its customers worldwide. The majority of the Company’s outstanding trade receivables are not covered by collaterals or guarantees. While the Company has procedures to monitor and manage credit risk exposure on trade receivables, there is no assurance such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during periods when economic conditions worsen. As of December 31, 2018 and 2017, the Company’s ten largest customers accounted for 79% and 70% of accounts receivable, respectively. The Company believes the concentration of credit risk is not material for the remaining accounts receivable. Financial credit risk The Company mitigates its financial credit risk by selecting counterparties with investment-grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews the limit applied to counterparties and adjusts the limit according to market conditions and the credit standing of the counterparties. The risk management of expected credit loss for financial assets at amortized cost and investments in debt instruments at FVTOCI is as follows: The Company only invests in debt instruments that are rated as investment grade or higher. The credit rating information is supplied by external rating agencies. The Company assesses whether there has been a significant increase in credit risk since initial recognition by reviewing changes in external credit ratings, financial market conditions and material information of the bond-issuers. The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows: Category Description Basis for Recognizing Expected Credit Loss Expected Credit Loss Ratio Performing Credit rating on trade date and 12 months expected credit 0-0.1% valuation date: (1) Within investment grade (2) Between BB+ and BB- loss Doubtful Credit rating on trade date and Lifetime expected credit valuation date: (1) From investment grade to non-investment grade (2) From BB+~BB- to B+~CCC- loss-not credit impaired In default Credit rating CC or below Write-off There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery Lifetime expected credit loss-credit impaired Amount is written off - - - For the year ended December 31, 2018, the expected credit loss decreases NT$1,040 thousand, mainly attributed to asset allocation adjustment to debt investments of higher credit rating. - 73 - e. Liquidity risk management The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalent, debt investment at FVTPL, financial assets at FVTOCI-current, and financial assets amortized at cost-current. The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest. Less Than 1 Year 2-3 Years 4-5 Years 5+ Years Total December 31, 2018 Non-derivative financial liabilities Short-term loans Accounts payable (including related $ 88,810,737 $ parties) Payables to contractors and equipment suppliers Accrued expenses and other current liabilities Bonds payable Guarantee deposits (including those classified under accrued expenses and other current liabilities) Derivative financial instruments Forward exchange contracts Outflows Inflows 34,357,432 43,133,659 50,240,928 36,039,935 $ - - - $ - - - - 35,340,742 - 22,979,426 6,835,667 259,418,358 2,891,663 38,232,405 461,715 23,441,141 49,302,325 (49,393,679 ) (91,354 ) - - - - - - - - - - - - - - - - $ 88,810,737 34,357,432 43,133,659 50,240,928 94,360,103 10,189,045 321,091,904 49,302,325 (49,393,679 ) (91,354 ) $ 259,327,004 $ 38,232,405 $ 23,441,141 $ - $ 321,000,550 December 31, 2017 Non-derivative financial liabilities Short-term loans Accounts payable (including related $ 63,801,977 $ parties) Payables to contractors and equipment suppliers Accrued expenses and other current liabilities Bonds payable Guarantee deposits (including those classified under accrued expenses and other current liabilities) Derivative financial instruments Forward exchange contracts Outflows Inflows 30,069,163 55,723,774 24,659,738 60,176,818 $ - - - $ - - - - - - $ 63,801,977 30,069,163 55,723,774 - 68,378,787 - 7,777,715 - 18,203,601 24,659,738 154,536,921 8,493,829 242,925,299 7,503,151 75,881,938 83,639 7,861,354 - 18,203,601 16,080,619 344,872,192 67,393,539 (67,957,919 ) (564,380 ) - - - - - - - - - 67,393,539 (67,957,919 ) (564,380 ) $ 242,360,919 $ 75,881,938 $ 7,861,354 $ 18,203,601 $ 344,307,812 - 74 - f. Fair value of financial instruments 1) Fair value measurements recognized in the consolidated balance sheets Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:  Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;  Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and  Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). 2) Fair value of financial instruments that are measured at fair value on a recurring basis Fair value hierarchy The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total December 31, 2018 Financial assets at FVTPL Mandatorily measured at FVTPL Agency mortgage-backed securities Forward exchange contracts Financial assets at FVTOCI Investments in debt instruments Corporate bonds Agency bonds/Agency mortgage-backed securities Asset-backed securities Government bonds Commercial paper Investments in equity instruments Non-publicly traded equity investments Publicly traded stocks Notes and accounts receivable, net Hedging financial assets Cash flow hedges $ $ - - - $ 3,419,287 85,303 $ $ 3,504,590 $ $ - $ 40,753,582 $ - - 11,006,167 - 31,288,762 15,670,295 145,192 107,590 - - - - - - - - $ 3,419,287 85,303 $ 3,504,590 $ 40,753,582 31,288,762 15,670,295 11,151,359 107,590 - 590,152 - - - 3,595,069 3,910,681 - - 3,910,681 590,152 3,595,069 $ 11,596,319 $ 91,560,490 $ 3,910,681 $ 107,067,490 Forward exchange contracts $ - $ 23,497 $ - $ 23,497 (Continued) - 75 - Level 1 Level 2 Level 3 Total December 31, 2018 Financial liabilities at FVTPL Held for trading Forward exchange contracts $ - $ 40,825 $ - $ 40,825 Hedging financial liabilities Fair value hedges Interest rate futures contracts $ 153,891 $ - $ Cash flow hedges Forward exchange contracts - 1,941 $ 153,891 $ 1,941 $ - - - $ 153,891 1,941 $ 155,832 (Concluded) Level 1 Level 2 Level 3 Total December 31, 2017 Financial assets at FVTPL Held for trading Forward exchange contracts Available-for-sale financial assets Corporate bonds Agency bonds/Agency mortgage-backed securities Asset-backed securities Government bonds Publicly traded stocks Commercial paper Hedging derivative financial assets Fair value hedges $ $ - - $ 569,751 $ $ 40,165,148 $ - - 7,715,980 2,548,054 - 29,235,388 13,459,545 101,743 - 148,295 $ 10,264,034 $ 83,110,119 $ Interest rate futures contracts $ 27,016 $ - $ Cash flow hedges Forward exchange contracts - 7,378 $ 27,016 $ 7,378 $ - - - - - - - - - - - $ 569,751 $ 40,165,148 29,235,388 13,459,545 7,817,723 2,548,054 148,295 $ 93,374,153 $ 27,016 7,378 $ 34,394 Financial liabilities at FVTPL Held for trading Forward exchange contracts Hedging derivative financial liabilities Cash flow hedges $ - $ 26,709 $ - $ 26,709 Forward exchange contracts $ - $ 15,562 $ - $ 15,562 - 76 - Reconciliation of Level 3 fair value measurements of financial assets The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI. Reconciliations for the year ended December 31, 2018 were as follows: Balance at January 1, 2018 Additions Recognized in other comprehensive income Disposals and proceeds from return of capital of investments Effect of exchange rate changes Balance at December 31, 2018 $ 5,841,384 212,488 (2,141,421) (175,731) 173,961 $ 3,910,681 Valuation techniques and assumptions used in Level 2 fair value measurement The fair values of financial assets and financial liabilities are determined as follows:  The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities, and government bonds are determined by quoted market prices provided by third party pricing services.  Forward exchange contracts are measured using forward exchange rates and the discounted yield curves that are derived from quoted market prices. For investments in commercial paper, the fair values are determined by the present value of future cash flows based on the discounted yield curves that are derived from the quoted market prices.  The fair value of accounts receivables classified as at FVTOCI are determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties. Valuation techniques and assumptions used in Level 3 fair value measurement The fair values of non-publicly traded equity investments are mainly determined by using the asset approach, income approach and market approach. To determine the fair value, the Company utilizes the asset approach and takes into account the net asset value measured at the fair value by independent parties. On December 31, 2018, the Company uses unobservable inputs derived from discount for lack of marketability by 10%. When other inputs remain equal, the fair value will decrease by NT$31,420 thousand if discounts for lack of marketability increase by 1%. The income approach utilizes discounted cash flows to determine the present value of the expected future economic benefits that will be derived from the investment. On December 31, 2018, the Company uses significant unobservable inputs, which include expected returns, discount rate of 10%, discounts for lack of marketability of 10% and discounts for lack of control of 10%. For the remaining few investments, the market approach is used to arrive at their fair value, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered. - 77 - 3) Fair value of financial instruments that are not measured at fair value Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the consolidated financial statements that are not measured at fair value approximate their fair values. Fair value hierarchy The table below sets out the fair value hierarchy for the Company’s assets and liabilities which are not required to measure at fair value: Carrying Amount December 31, 2018 Fair Value Level 1 Level 2 Level 3 Total Financial assets Financial assets at amortized costs Corporate bonds Commercial paper Financial liabilities Financial liabilities at amortized costs $ 19,511,794 $ 2,294,098 - $ 19,554,553 $ 2,296,188 - - $ 19,554,553 2,296,188 - $ 21,805,892 $ - $ 21,850,741 $ - $ 21,850,741 Bonds payable $ 91,800,000 $ - $ 93,171,255 $ - $ 93,171,255 Carrying Amount December 31, 2017 Fair Value Level 1 Level 2 Level 3 Total Financial assets Held-to-maturity securities Corporate bonds Structured product Financial liabilities Measured at amortized cost Bonds payable $ 19,338,764 1,482,950 $ - - $ 19,541,419 $ 1,475,350 - $ 19,541,419 1,475,350 - $ 20,821,714 $ - $ 21,016,769 $ - $ 21,016,769 $ 150,201,122 $ - $ 152,077,728 $ - $ 152,077,728 Valuation techniques and assumptions used in Level 2 fair value measurement The fair value of corporate bonds is determined by quoted market prices provided by third party pricing services. The fair value of structured product is determined by quoted market prices provided by the counterparty. The fair value of commercial paper is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices. The fair value of the Company’s bonds payable is determined by quoted market prices provided by third party pricing services. - 78 - 37. RELATED PARTY TRANSACTIONS Intercompany balances and transactions between TSMC and its subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related parties: a. Related party name and categories Related Party Name Related Party Categories GUC VIS SSMC Xintec Mutual-Pak TSMC Education and Culture Foundation TSMC Charity Foundation b. Net revenue Associates Associates Associates Associates Associates Other related parties Other related parties Item Related Party Categories Net revenue from sale of goods Associates Other related parties Years Ended December 31 2018 2017 $ 8,980,079 330 $ 8,495,937 133 $ 8,980,409 $ 8,496,070 Net revenue from royalties Associates $ 362,259 $ 482,537 c. Purchases Related Party Categories Associates d. Receivables from related parties Years Ended December 31 2018 2017 $ 8,809,533 $ 9,904,637 December 31, 2018 December 31, 2017 Item Related Party Name/Categories Receivables from related parties GUC Xintec $ 481,934 102,478 $ 1,022,892 161,232 $ 584,412 $ 1,184,124 (Continued) - 79 - Item Related Party Name/Categories December 31, 2018 December 31, 2017 Other receivables from related SSMC parties VIS Other Associates e. Payables to related parties $ $ 53,780 10,423 825 83,099 78,141 9,818 $ 65,028 $ 171,058 (Concluded) December 31, 2018 December 31, 2017 Item Related Party Name/Categories Payables to related parties Xintec SSMC VIS Other Associates f. Others $ $ 649,812 362,564 357,080 7,043 817,930 406,959 409,950 21,517 $ 1,376,499 $ 1,656,356 Years Ended December 31 2018 2017 Item Related Party Categories Manufacturing expenses Associates $ 2,974,581 $ 2,196,141 General and administrative Other related parties $ 120,756 $ 101,500 expenses The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements. The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses. The Company deferred the disposal gain or loss derived from sales of property, plant and equipment to related parties (transactions with associates), and then recognized such gain or loss over the depreciable lives of the disposed assets. - 80 - g. Compensation of key management personnel The compensation to directors and other key management personnel for the years ended December 31, 2018 and 2017 were as follows: Short-term employee benefits Post-employment benefits Years Ended December 31 2018 2017 $ 2,004,881 3,383 $ 2,170,280 3,727 $ 2,008,264 $ 2,174,007 The compensation to directors and other key management personnel were determined by the Compensation Committee of TSMC in accordance with the individual performance and the market trends. 38. PLEDGED ASSETS The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of December 31, 2018 and 2017, the aforementioned other financial assets amounted to NT$124,244 thousand and NT$165,618 thousand, respectively. 39. SIGNIFICANT OPERATING LEASE ARRANGEMENTS The Company’s major significant operating leases are arrangements on several parcels of land, machinery and equipment and office premises. The Company expensed the lease payments as follows: Minimum lease payments $ 4,243,091 $ 2,178,054 Future minimum lease payments under the above non-cancellable operating leases are as follows: Years Ended December 31 2018 2017 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years December 31, 2018 December 31, 2017 $ 5,824,119 5,834,884 9,190,582 $ 3,116,209 5,174,729 8,905,848 $ 20,849,585 $ 17,196,786 - 81 - 40. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows: a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of December 31, 2018, the R.O.C. Government did not invoke such right. b. Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of December 31, 2018. c. In May 2017, Uri Cohen filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America and other companies infringe four U.S. patents. Cohen’s case was transferred to and consolidated with the responsive declaratory judgment case for non-infringement of Cohen’s asserted patents filed by TSMC and TSMC North America in the U.S. District Court for the Northern District of California. In July 2018, all pending litigations between the parties in the U.S. District Court for the Northern District of California were dismissed. d. On September 28, 2017, TSMC was contacted by the European Commission (the “Commission”), which has asked us for information and documents concerning alleged anti-competitive practices in relation to semiconductor sales. We are cooperating with the Commission to provide the requested information and documents. In light of the fact that this proceeding is still in its preliminary stage, it is premature to predict how the case will proceed, the outcome of the proceeding or its impact. e. TSMC entered into long-term purchase agreements of material with multiple suppliers. The relative minimum purchase quantity and price are specified in the agreements. f. TSMC entered into a long-term purchase agreement of equipment. The relative purchase quantity and price are specified in the agreement. g. TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative purchase period, quantity and price are specified in the agreements. h. Amounts available under unused letters of credit as of December 31, 2018 and 2017 were NT$70,702 thousand and NT$94,909 thousand, respectively. - 82 - 41. SIGNIFICANT LOSSES FROM DISASTERS The Company experienced a computer virus outbreak on August 3, 2018, which affected a number of computer systems and fab tools, and consequently impacted wafer production in Taiwan. All the impacted tools have been recovered by August 6, 2018. The Company recognized a loss of NT$2,596,046 thousand related to this incident for the three months ended September 30, 2018, which was included in cost of revenue. 42. SIGNIFICANT SUBSEQUENT EVENTS On January 19, 2019, the Company discovered a wafer contamination issue in a fab in Taiwan caused by a batch of unqualified photoresist materials. After investigation, the Company immediately stopped using the unqualified materials. As of the date the accompanying consolidated financial statements were issued, a preliminary estimated loss of NT$6,100,000 thousand will be recognized in cost of revenue for the three months ended March 31, 2019. 43. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows: Foreign Currencies (In Thousands) Exchange Rate (Note 1) Carrying Amount (In Thousands) December 31, 2018 Financial assets Monetary items USD USD EUR JPY Non-monetary items HKD Financial liabilities Monetary items USD EUR JPY $ 4,618,566 343,132 7,561 490,635 30.740 6.866 (Note 2) 35.22 0.2783 $ 141,974,734 10,547,875 266,307 136,544 144,567 3.93 568,150 4,323,763 477,776 35,084,436 30.740 35.22 0.2783 132,912,486 16,827,260 9,763,999 (Continued) - 83 - December 31, 2017 Financial assets Monetary items USD USD EUR JPY Financial assets Non-monetary items HKD Financial liabilities Monetary items USD EUR JPY Foreign Currencies (In Thousands) Exchange Rate (Note 1) Carrying Amount (In Thousands) $ 5,668,611 580,555 236,474 34,335,661 29.659 6.512 (Note 2) 35.45 0.2629 $ 168,125,342 17,218,674 8,383,015 9,026,845 285,336 3.80 1,084,276 4,048,384 415,819 43,205,838 29.659 35.45 0.2629 120,071,030 14,740,766 11,358,815 (Concluded) Note 1: Except as otherwise noted, exchange rate represents the number of N.T. dollars for which one foreign currency could be exchanged. Note 2: The exchange rate represents the number of RMB for which one USD dollars could be exchanged. Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the years ended December 31, 2018 and 2017, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact. 44. ADDITIONAL DISCLOSURES Following are the additional disclosures required by the Securities and Futures Bureau for TSMC: a. Financings provided: Please see Table 1 attached; b. Endorsement/guarantee provided: Please see Table 2 attached; c. Marketable securities held (excluding investments in subsidiaries and associates): Please see Table 3 attached; - 84 - d. Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 4 attached; e. Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: Please see Table 5 attached; f. Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None; g. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached; h. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 7 attached; Information about the derivative financial instruments transaction: Please see Notes 7 and 13; i. j. Others: The business relationship between the parent and the subsidiaries and significant transactions between them: Please see Table 8 attached; k. Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): Please see Table 9 attached; l. Information on investment in mainland China 1) The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 10 attached. 2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: Please see Table 8 attached. 45. OPERATING SEGMENTS INFORMATION a. Operating segments, segment revenue and operating results The Company has only one operating segment, the foundry segment. The foundry segment engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. The Company uses the income from operations as the measurement for the basis of performance assessment. The basis for such measurement is the same as that for the preparation of financial statements. Please refer to the consolidated statements of comprehensive income for the related segment revenue and operating results. - 85 - b. Geographic, product and major customers information were as follows: 1) Geographic information Net Revenue from External Customers Year Ended December 31 Noncurrent Assets December 31, December 31, 2017 2018 2017 Taiwan United States China Europe, the Middle East and Africa Japan Others $ 88,046,147 635,851,720 110,201,389 69,046,797 60,628,029 13,673,159 $ 1,039,471,321 7,569,797 43,574,538 8,269 13,138 - $ 1,027,963,202 7,515,835 44,204,888 8,123 8,534 - $ 977,447,241 $ 1,090,637,063 $ 1,079,700,582 The Company categorized the net revenue mainly based on the countries where the customers are headquartered. For geographic information in 2018, please refer to Note 26. Noncurrent assets include property, plant and equipment, intangible assets and other noncurrent assets. 2) Product information Product Wafer Others Year Ended December 31 2017 $ 875,461,445 101,985,796 $ 977,447,241 For product information in 2018, please refer to Note 26. 3) Major customers representing at least 10% of net revenue Years Ended December 31 2018 2017 Amount % Amount % Customer A $ 224,690,695 22 $ 220,463,127 23 Commencing in 2018, the Company began to break down the net revenue by geography, by product and by customer based on a new method which associates most estimated sales returns and allowances with individual sales transactions, as opposed to the previous method which allocated sales returns and allowances based on the aforementioned gross revenue. The Company believes the new method provides a more relevant breakdown than the previous one. On a comparable basis, the classifications of 2017 have been revised accordingly. - 86 - ) 2 d n a 1 e t o N ( ) 2 d n a 1 e t o N ( 8 1 8 , 6 8 5 5 5 , $ , 8 1 8 6 8 5 , 5 5 $ , 1 3 9 7 7 5 , 3 9 3 1 3 9 , 7 7 5 3 9 3 , 1 E L B A T g n i c n a n i F l a t o T s ’ y n a p m o C t n u o m A g n i c n a n i F s t i m L i s t i i m L g n i c n a n i F l a r e t a l l o C h c a E r o f g n i w o r r o B y n a p m o C e u l a V m e t I t b e D ) 4 e t o N ( d a B r o f e c n a w o l l A g n i c n a n i F r o f n o s a e R n o i t c a s n a r T s t n u o m A g n i c n a n F r o f i e r u t a N ) 4 e t o N ( e t a R t s e r e t n I y l l a u t c A t n u o m A n w a r D n i s e i c n e r r u c n g i e r o f ( ) s d n a s u o h T e c n a l a B g n i d n E n i s e i c n e r r u c n g i e r o f ( ) 3 e t o N ( ) s d n a s u o h T m u m i x a M e h t r o f e c n a l a B n g i e r o f ( d o i r e P n i s e i c n e r r u c ) s d n a s u o h T ) 3 e t o N ( d e t a l e R y t r a P t n e m e t a t S l a i c n a n i F t n u o c c A y t r a p - r e t n u o C g n i c n a n i F y n a p m o C . o N ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T D E D I V O R P S G N I C N A N I F - - $ - - - - $ l a t i p a c g n i t a r e p O l a t i p a c g n i t a r e p O - - $ m r e t - t r o h s r o f d e e n e h T % 6 9 . 1 - % 0 3 . 1 0 6 2 , 9 2 8 , 0 3 $ 0 6 5 , 5 6 0 , 6 4 $ 0 0 1 , 9 5 8 , 2 5 $ s e Y m o r f s e l b a v i e c e r r e h t O g n i j n a N C M S T a n i h C C M S T m r e t - g n o l d n a g n i c n a n i f g n i c n a n i f m r e t - t r o h s r o f d e e n e h T % 3 5 . 2 & ) 0 0 0 , 0 0 0 , 6 ) 0 0 0 , 9 2 1 0 0 7 , 7 2 2 , 3 ) 0 0 0 , 5 0 1 B M R ( $ S U ( & ) 0 0 0 , 0 0 0 , 7 ) 0 0 0 , 9 7 4 B M R ( $ S U ( & ) 0 0 0 , 0 0 0 , 7 ) 0 0 0 , 0 0 7 B M R ( $ S U ( s e i t r a p d e t a l e r $ S U ( ) 0 0 0 , 0 0 5 , 1 $ S U ( ) 0 0 0 , 0 0 5 , 1 $ S U ( s e i t r a p d e t a l e r 0 0 0 , 0 1 1 , 6 4 0 0 0 , 0 1 1 , 6 4 s e Y m o r f s e l b a v i e c e r r e h t O C M S T l a b o l G C M S T 1 2 n a h t e r o m o n e b l l a h s r e w o r r o b e n o y n a o t e l b a d n e l t n u o m a l a t o t e h t , n o i t i d d a n I . a n i h C C M S T f o h t r o w t e n e h t f o ) % 0 1 ( t n e c r e p n e t d e e c x e t o n l l a h s d o i r e p m r e t - t r o h s a r o f g n i d n u f r o f y n a p m o c a o t g n i d n e l r o f t n u o m a l a t o t e h T . a n i h C C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s e s o p r u p g n i d n e l r o f e l b a l i a v a t n u o m a l a t o t e h T n e h W . a n i h C C M S T f o h t r o w t e n e h t f o ) % 0 4 ( t n e c r e p y t r o f d e e c x e t o n l l a h s C M S T f o y r a i d i s b u s h c u s y n a o t e l b a d n e l t n u o m a l a t o t e h t , r e v e w o H . C M S T y b , y l t c e r i d n i r o y l t c e r i d , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s e h t o t y l p p a t o n s e o d n o i t c i r t s e r e v o b a e h T . h t r o w t e n s ’ r e w o r r o b e h t f o ) % 0 3 ( t n e c r e p y t r i h t e h t , g n i o g e r o f e h t g n i d n a t s h t i w t o N . e l c i t r A s i h t f o h p a r g a r a p e v o b a e h t n i h t r o f t e s n o i t c i r t s e r e h t o t t c e j b u s e b t o n l l i w g n i d n e l e h t , n a w i a T n i d e t a c o l t o n e r a h c i h w , C M S T y b , y l t c e r i d n i r o y l t c e r i d , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s e h t o t r o , C M S T o t a n i h C C M S T y b s d e e n g n i d n u f r o f g n i d n e l a s i e r e h t . a n i h C C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s l l i t s s r e w o r r o b h c u s f o h c a e o t e l b a d n e l t n u o m a l a t o t e h t d n a s r e w o r r o b h c u s o t g n i d n e l r o f e l b a l i a v a t n u o m a e t a g e r g g a n a h t e r o m o n e b l l a h s r e w o r r o b e n o y n a o t e l b a d n e l t n u o m a l a t o t e h t , n o i t i d d a n I . l a b o l G C M S T f o h t r o w t e n e h t f o ) % 0 1 ( t n e c r e p n e t d e e c x e t o n l l a h s d o i r e p m r e t - t r o h s a r o f g n i d n u f r o f y n a p m o c a o t g n i d n e l r o f t n u o m a l a t o t e h T . l a b o l G C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s e s o p r u p g n i d n e l r o f e l b a l i a v a t n u o m a l a t o t e h T e t a g e r g g a e h t , g n i o g e r o f e h t g n i d n a t s h t i w t o N . l a b o l G C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s l l i t s t n u o m a g n i w o r r o b l a t o t r i e h t , n o i t c i r t s e r s i h t o t t c e j b u s e b t o n l l i w C M S T y b , y l t c e r i d n i r o y l t c e r i d , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s n g i e r o f r o , C M S T e l i h W . h t r o w t e n s ’ r e w o r r o b e h t f o ) % 0 3 ( t n e c r e p y t r i h t . s e r a h s g n i t o v e h t f o % 0 0 1 , y l t c e r i d n i r o y l t c e r i d , s d l o h y n a p m o C e h t h c i h w n i s e i r a i d i s b u s e r o h s f f o n e e w t e b g n i d n u f r o f s n a o l y n a p m o c - r e t n i o t y l p p a t o n l l a h s r a e y e n o g n i d e e c x e t o n g n i d n u f r o f n a o l h c a e f o m r e t e h t f o n o i t c i r t s e r e h T . l a b o l G C M S T f o h t r o w t e n e h t f o ) % 0 4 ( t n e c r e p y t r o f d e e c x e t o n l l a h s C M S T n a h t r e h t o s e i n a p m o c n a w i a T o t g n i d n e l r o f t n u o m a . s r o t c e r i D f o d r a o B e h t y b d e v o r p p a s t n u o m a e h t t n e s e r p e r e c n a l a b g n i d n e d n a d o i r e p e h t r o f e c n a l a b m u m i x a m e h T : 1 e t o N : 2 e t o N : 3 e t o N : 4 e t o N - 7 8 - 2 E L B A T e e t n a r a u G o t d e d i v o r P s e i r a i d i s b u S d n a l n i a M n i i a n h C e e t n a r a u G y b d e d i v o r P y r a i d i s b u S A e e t n a r a u G y b d e d i v o r P t n e r a P y n a p m o C m u m i x a M / t n e m e s r o d n E e e t n a r a u G t n u o m A e l b a w o l l A ) 2 e t o N ( s t n e m e t a t S f o o i t a R d e t a l u m u c c A / t n e m e s r o d n E f o t n u o m A / t n e m e s r o d n E t e N o t e e t n a r a u G e e t n a r a u G i l a i c n a n F t s e t a L s e i t r e p o r P r e p y t i u q E y b d e z i l a r e t a l l o C y l l a u t c A t n u o m A e c n a l a B g n i d n E n w a r D n i $ S U ( ) s d n a s u o h T n i $ S U ( ) s d n a s u o h T ) 3 e t o N ( s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( D E D I V O R P S E E T N A R A U G / S T N E M E S R O D N E 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F m u m i x a M e c n a l a B d o i r e P e h t r o f / t n e m e s r o d n E e e t n a r a u G t n u o m A n i $ S U ( h c a E o t d e d i v o r P ) s d n a s u o h T ) 3 e t o N ( d e e t n a r a u G y t r a P ) 2 d n a 1 s e t o N ( n o s t i m L i y t r a P d e e t n a r a u G f o e r u t a N p i h s n o i t a l e R e m a N r e d i v o r P e e t n a r a u G / t n e m e s r o d n E . o N o N o N o N o N s e Y s e Y 6 1 4 , 4 0 2 , 9 1 4 $ - 6 1 4 , 4 0 2 , 9 1 4 % 5 1 . 0 - - ) 0 0 0 , 0 5 1 , 1 $ S U ( ) 3 1 2 , 3 8 $ S U ( ) 3 1 2 , 3 8 $ S U ( ) 3 1 2 , 3 8 $ S U ( a c i r e m A 7 7 9 , 7 5 5 , 2 7 7 9 , 7 5 5 , 2 7 7 9 , 7 5 5 , 2 6 1 4 , 4 0 2 , 9 1 4 y r a i d i s b u S h t r o N C M S T $ - $ - $ 0 0 0 , 1 5 3 , 5 3 $ 6 1 4 , 4 0 2 , 9 1 4 $ y r a i d i s b u S l a b o l G C M S T C M S T 0 , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s , r e v e w o H . y t i t n e h c u s f o h t r o w t e n e h t r o , h t r o w t e n s ’ C M S T f o ) % 0 1 ( t n e c r e p n e t d e e c x e t o n l l a h s y t i t n e l a u d i v i d n i y n a o t C M S T y b d e d i v o r p e e t n a r a u g e h t f o t n u o m a l a t o t e h T : 1 . s r o t c e r i D f o d r a o B e h t f o l a v o r p p a e h t r e t f a s n o i t c i r t s e r e v o b a e h t o t t c e j b u s t o n e r a C M S T y b , y l t c e r i d n i r o y l t c e r i d . s r o t c e r i D f o d r a o B e h t y b d e v o r p p a s t n u o m a e h t t n e s e r p e r e c n a l a b g n i d n e d n a d o i r e p e h t r o f e c n a l a b m u m i x a m e h T : 3 . h t r o w t e n s ’ C M S T f o ) % 5 2 ( t n e c r e p e v i f - y t n e w t d e e c x e t o n l l a h s e e t n a r a u g f o t n u o m a l a t o t e h T : 2 e t o N e t o N e t o N - 8 8 - 3 E L B A T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( D L E H S E I T I R U C E S E L B A T E K R A M 8 1 0 2 , 1 3 R E B M E C E D ) d e u n i t n o C ( 0 8 0 , 9 9 4 7 0 1 , 7 9 7 , 1 $ A N / A N / 7 3 8 , 8 9 4 1 6 2 , 5 9 7 , 1 $ 0 5 0 8 1 〃 t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F 5 2 2 , 3 9 4 0 3 4 , 8 7 6 7 1 , 9 7 3 7 4 7 , 5 4 5 5 , 4 7 7 4 , 2 0 5 1 , 8 6 5 - - - 4 0 9 , 8 $ S U 5 7 1 , 8 6 8 4 , 1 $ S U $ S U 5 5 7 , 4 4 $ S U 1 9 2 , 4 4 7 3 2 , 0 4 4 6 4 , 2 3 2 0 6 , 8 2 8 3 2 , 7 2 3 2 1 , 3 2 4 9 8 , 8 1 7 2 9 , 5 1 1 7 5 , 5 1 4 9 5 , 2 1 5 8 5 , 2 1 8 7 5 , 2 1 3 0 2 , 2 1 4 0 7 , 1 1 4 0 5 , 1 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 1 7 6 2 1 2 1 - 6 9 4 5 2 2 1 9 A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 5 2 2 , 3 9 4 0 3 4 , 8 7 6 7 1 , 9 7 3 7 4 7 , 5 4 5 5 , 4 7 7 4 , 2 - - 0 3 2 , 1 2 6 0 8 0 0 5 , 0 1 4 2 1 , 1 1 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 0 5 1 , 8 6 5 5 0 1 , 1 2 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c - - - 4 0 9 , 8 $ S U 5 7 1 , 8 6 8 4 , 1 $ S U $ S U 5 5 7 , 4 4 $ S U 1 9 2 , 4 4 7 3 2 , 0 4 4 6 4 , 2 3 2 0 6 , 8 2 8 3 2 , 7 2 3 2 1 , 3 2 4 9 8 , 8 1 7 2 9 , 5 1 1 7 5 , 5 1 4 9 5 , 2 1 5 8 5 , 2 1 8 7 5 , 2 1 3 0 2 , 2 1 4 0 7 , 1 1 4 0 5 , 1 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - 7 3 6 3 3 3 , 6 0 4 4 , 0 1 - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9 8 - n o i t a r o p r o C l a n o i t a n r e t n I g n i r u t c a f u n a M r o t c u d n o c i m e S s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N . d t L , . o C s e s a G l a i r t s u d n I d e t i n U . d t L , . o C n a w i a T i a t o d n a H u s t E - n i h S . c n I g n i d l o H t n e m t s e v n I l a b o l G V I d n u F y g o l o n h c e T . . K W d n u F s e r u t n e V n o z i r o H l a t i p a C a i s A n o s m i r C s k c o t s d e d a r t y l c i l b u P n a w i a T , n o i t a r o p r o C C P C y n a p m o C r e w o P n a w i a T r e p a p l a i c r e m m o C C M S T . . P L , I I s t n e m t s e v n I e r u t n e V n e d l a W a n i h C . . P L , I I I s t n e m t s e v n I e r u t n e V n e d l a W a n i h C s n o i t a v o n n I a l e T . c n I e b u c M . c n I , s c i n o S e s i r p r e t n E l a t i p a C e r u t n e V n e d l a W i a h g n a h S s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N s r e n t r a P C M S T p r o C a c i r e m A f o k n a B d n o b e t a r o p r o C l a b o l G C M S T e h T / c n I p u o r G s h c a S n a m d l o G o C & e s a h C n a g r o M P J y e l n a t S n a g r o M p r o C h t l a e H S V C c n I p u o r g i t i C p r o C t s a c m o C c n I T & T A C L L a c i r e m A h t r o N e c n a n i F r e l m i a D c n I s n o i t a c i n u m m o C n o z i r e V C L P s g n i d l o H C B S H p r o C l a t i p a C T A B c n I e l p p A p b A k n a B a e d r o N A N k n a B C N P c n I e i V b b A s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 9 5 1 , 1 1 $ S U 7 3 7 , 0 1 3 5 1 , 0 1 6 9 0 , 0 1 8 0 0 , 0 1 7 4 5 , 9 8 2 2 , 9 0 7 9 , 8 1 4 8 , 8 2 5 6 , 8 1 0 6 , 8 5 9 4 , 8 9 8 0 , 8 0 5 8 , 7 6 2 7 , 7 8 1 7 , 7 7 1 7 , 7 1 2 6 , 7 7 1 5 , 7 4 8 4 , 7 9 6 4 , 7 2 6 4 , 7 2 3 4 , 7 7 8 3 , 7 7 6 3 , 7 7 2 3 , 7 0 7 2 , 7 2 5 1 , 7 0 1 1 , 7 7 9 0 , 7 1 8 0 , 7 9 3 0 , 7 5 9 9 , 6 7 0 9 , 6 7 0 9 , 6 2 0 9 , 6 3 8 7 , 6 3 0 7 , 6 4 4 6 , 6 7 3 6 , 6 9 8 5 , 6 7 7 4 , 6 4 7 4 , 6 7 6 4 , 6 3 1 2 , 6 7 8 1 , 6 1 6 1 , 6 2 5 1 , 6 9 4 0 , 6 5 4 0 , 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 9 5 1 , 1 1 $ S U 7 3 7 , 0 1 3 5 1 , 0 1 6 9 0 , 0 1 8 0 0 , 0 1 7 4 5 , 9 8 2 2 , 9 0 7 9 , 8 1 4 8 , 8 2 5 6 , 8 1 0 6 , 8 5 9 4 , 8 9 8 0 , 8 0 5 8 , 7 6 2 7 , 7 8 1 7 , 7 7 1 7 , 7 1 2 6 , 7 7 1 5 , 7 4 8 4 , 7 9 6 4 , 7 2 6 4 , 7 2 3 4 , 7 7 8 3 , 7 7 6 3 , 7 7 2 3 , 7 0 7 2 , 7 2 5 1 , 7 0 1 1 , 7 7 9 0 , 7 1 8 0 , 7 9 3 0 , 7 5 9 9 , 6 7 0 9 , 6 7 0 9 , 6 2 0 9 , 6 3 8 7 , 6 3 0 7 , 6 4 4 6 , 6 7 3 6 , 6 9 8 5 , 6 7 7 4 , 6 4 7 4 , 6 7 6 4 , 6 3 1 2 , 6 7 8 1 , 6 1 6 1 , 6 2 5 1 , 6 9 4 0 , 6 5 4 0 , 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 0 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - c n I p u o r G l a i c n a n i F i u s t i M o m o t i m u S c n I p u o r G l a i c n a n i F J F U i h s i b u s t i M c n I p u o r G l a n o i t a n r e t n I n a c i r e m A / Y N k r o Y w e N G A e s s i u S t i d e r C C L L o C t i d e r C r o t o M d r o F C L L e c n a n i F A S U C A R E V N k n a B O R M A N B A d t L s g n i d l o H t n e c n e T o C & o g r a F s l l e W d t L p u o r G e i r a u q c a M c n I s e c i v e D g o l a n A p r o C y g r e n E e k u D c n I e g n a h c x E l a t n e n i t n o c r e t n I p r o C e n e g l e C p r o C t i d e r C s s e r p x E n a c i r e m A e h T / k n a B l a n o i t a N n o t g n i t n u H A N k n a B o g r a F s l l e W V N j i p p a h c s t a a m s g n i r e i c n a n i F s n e m e i S I R e c n e d i v o r P / A N k n a B s n e z i t i C / Y N A U k n a b o b a R e v e i t a r e p o o C c n I h t l a e H l a n i d r a C c n I M M O C L A U Q I I g n i d n u F l a b o l G e f i L d r a d n a t S e c n a i l e R G A d n a l r e z t i w S g n i d n u F p u o r G S B U n o d n o L / d t L l ' t n I d n a l a e Z w e N Z N A o C e s i r p r e t n E d r a k c a P t t e l w e H p r o C t f o s o r c i M V B e c n a n i F l a n o i t a n r e t n I m o k e l e T e h c s t u e D e h T / p r o C n o l l e M k r o Y w e N f o k n a B c n I e c n a n i F v e B n I h c s u B - r e s u e h n A a c i r e m A l a t i p a C i a d n u y H c n I p u o r G l a i c n a n i F o h u z i M p r o C t i d e r C r o t o M a t o y o T p r o C T & B B k n a B t n e m p o l e v e D n a c i r f A B A n e k n a b s l e d n a H a k s n e v S p r o C s c i m a n y D l a r e n e G A S r e d n a t n a S o c n a B c n I r e w o t l l e W A G a t n a l t A / k n a B t s u r T n u S p r o C g n i k n a B c a p t s e W C L P s t e k r a M l a t i p a C P B e h T / o C n r e h t u o S c n I y g r e n E n o i n i m o D c n I s d o o F n o s y T p r o C e s a e L r i A c n I a c i r e m A x o F y r u t n e C t s 1 2 H O d n a l e v e l C A N k n a B y e K / p r o c n a B d r i h T h t f i F p r o C s e i g o l o n h c e T d e t i n U l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 6 3 0 , 6 $ S U 6 0 8 , 5 6 0 8 , 5 2 8 7 , 5 2 7 7 , 5 7 5 7 , 5 9 0 7 , 5 2 6 6 , 5 7 5 6 , 5 6 1 6 , 5 1 1 6 , 5 9 8 5 , 5 8 6 5 , 5 1 2 5 , 5 9 9 3 , 5 0 5 3 , 5 5 0 3 , 5 8 1 2 , 5 6 8 1 , 5 2 9 0 , 5 9 6 0 , 5 9 4 0 , 5 4 4 0 , 5 0 0 0 , 5 2 7 9 , 4 7 1 9 , 4 9 9 7 , 4 1 9 7 , 4 8 7 7 , 4 6 0 7 , 4 4 4 6 , 4 4 2 6 , 4 4 6 5 , 4 7 4 5 , 4 0 3 5 , 4 6 2 5 , 4 2 0 5 , 4 8 4 4 , 4 6 1 2 , 4 8 1 1 , 4 0 4 0 , 4 1 3 0 , 4 8 2 0 , 4 9 6 9 , 3 3 0 9 , 3 2 6 8 , 3 7 2 8 , 3 2 6 7 , 3 6 5 6 , 3 3 4 6 , 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 6 3 0 , 6 $ S U 6 0 8 , 5 6 0 8 , 5 2 8 7 , 5 2 7 7 , 5 7 5 7 , 5 9 0 7 , 5 2 6 6 , 5 7 5 6 , 5 6 1 6 , 5 1 1 6 , 5 9 8 5 , 5 8 6 5 , 5 1 2 5 , 5 9 9 3 , 5 0 5 3 , 5 5 0 3 , 5 8 1 2 , 5 6 8 1 , 5 2 9 0 , 5 9 6 0 , 5 9 4 0 , 5 4 4 0 , 5 0 0 0 , 5 2 7 9 , 4 7 1 9 , 4 9 9 7 , 4 1 9 7 , 4 8 7 7 , 4 6 0 7 , 4 4 4 6 , 4 4 2 6 , 4 4 6 5 , 4 7 4 5 , 4 0 3 5 , 4 6 2 5 , 4 2 0 5 , 4 8 4 4 , 4 6 1 2 , 4 8 1 1 , 4 0 4 0 , 4 1 3 0 , 4 8 2 0 , 4 9 6 9 , 3 3 0 9 , 3 2 6 8 , 3 7 2 8 , 3 2 6 7 , 3 6 5 6 , 3 3 4 6 , 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 1 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - p r o C e c n a n i F L T P / p L o C g n i s a e L k c u r T e k s n e P C L P s e c i v r e S y r u s a e r T r e s i k c n e B t t i k c e R C L L g n i t a r e p O s t c u d o r P e s i r p r e t n E c n I a c i r e m A s t e k r a M l a t i p a C P B c n I s g n i d l o H e l b a t i u q E A X A C L L p u o r G l a t i p a C n o i t a i v A C L P K U r e d n a t n a S p r o C e l c a r O C A D e c n a n i F l a t i p a C n o i t a i v A C B M S C L P s g n i d l o H p u o r G K U r e d n a t n a S p r o C y e K / n o d n o L G A S B U c n I t n o P u D w o D A S E C P B e h T / o C n o i n U n r e t s e W p r o C s g n i d l o H C T I A N e n O l a t i p a C t n e m p o l e v e D & n o i t c u r t s n o c e R r o f k n a B l a n o i t a n r e t n I g n i d n u F l a b o l G e f i L l a n o i t a N n o s k c a J o C t s u r T s r e d a r T & s r e r u t c a f u n a M d t L s g n i d l o H l a n o i t a n r e t n I o p m o S d t L y e s n r e u G g n i d n u F p u o r G e s s i u S t i d e r C c n I s g n i d l o H l a t i p a C y g r e n E a r E t x e N H O / i t a n n i c n i C A N k n a B S U t s u r T g n i d n u F s r e n r o C e v i F g n i d n u F l a b o l G e f i L k r o Y w e N C L P s y a l c r a B H O i t a n n i c n i C / k n a B d r i h T h t f i F / n o d n o L A S e l o c i r g A t i d e r C C L P p u o r G e n o f a d o V o C s s e r p x E n a c i r e m A A S s a b i r a P P N B c n I s a x e T P E A c n I n e g m A A S l e u t u M t i d e r C u d e v i t a r e d e F e u q n a B C L L o C n o i t a r e n e G n o l e x E k n a B t n e m t s e v n I n a e p o r u E e h T / a i t o c S a v o N f o k n a B A S e c n a n i F e d i u q i L r i A l a n o i t a n r e t n I n o s i d E c n I d r a T - e h c u o C n o i t a t n e m i l A d t L k n a B e i r a u q c a M e h T / k n a B n o i n i m o D - o t n o r o T c n I s k n a B t s u r T n u S T C d r o f m a t S G A S B U / o C g n i d l o H a n g i C D M / c n I l a n o i t a n r e t n I t t o i r r a M c n I s n o i t a c i n u m m o C x o C c n I m e t s y S r e d y R p r o C n a m m u r G p o r h t r o N l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 3 6 , 3 $ S U 1 2 6 , 3 4 9 5 , 3 6 8 5 , 3 9 8 4 , 3 4 8 4 , 3 0 8 4 , 3 6 2 4 , 3 6 0 4 , 3 5 8 3 , 3 2 8 3 , 3 6 6 3 , 3 2 2 2 , 3 8 1 1 , 3 2 0 1 , 3 6 8 0 , 3 5 7 0 , 3 8 5 0 , 3 9 1 0 , 3 7 0 0 , 3 5 1 9 , 2 3 4 8 , 2 3 9 7 , 2 1 4 7 , 2 7 2 7 , 2 8 1 7 , 2 4 6 6 , 2 1 1 6 , 2 5 9 5 , 2 8 6 5 , 2 2 0 5 , 2 1 0 5 , 2 4 8 4 , 2 3 8 4 , 2 2 8 4 , 2 6 1 4 , 2 7 7 3 , 2 5 4 3 , 2 6 2 3 , 2 9 1 3 , 2 6 9 2 , 2 2 5 2 , 2 9 1 2 , 2 5 6 1 , 2 4 6 1 , 2 1 0 1 , 2 4 9 0 , 2 9 3 0 , 2 4 2 0 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 3 6 , 3 $ S U 1 2 6 , 3 4 9 5 , 3 6 8 5 , 3 9 8 4 , 3 4 8 4 , 3 0 8 4 , 3 6 2 4 , 3 6 0 4 , 3 5 8 3 , 3 2 8 3 , 3 6 6 3 , 3 2 2 2 , 3 8 1 1 , 3 2 0 1 , 3 6 8 0 , 3 5 7 0 , 3 8 5 0 , 3 9 1 0 , 3 7 0 0 , 3 5 1 9 , 2 3 4 8 , 2 3 9 7 , 2 1 4 7 , 2 7 2 7 , 2 8 1 7 , 2 4 6 6 , 2 1 1 6 , 2 5 9 5 , 2 8 6 5 , 2 2 0 5 , 2 1 0 5 , 2 4 8 4 , 2 3 8 4 , 2 2 8 4 , 2 6 1 4 , 2 7 7 3 , 2 5 4 3 , 2 6 2 3 , 2 9 1 3 , 2 6 9 2 , 2 2 5 2 , 2 9 1 2 , 2 5 6 1 , 2 4 6 1 , 2 1 0 1 , 2 4 9 0 , 2 9 3 0 , 2 4 2 0 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 2 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - t n i r p S / C L L I I o C m u r t c e p S t n i r p S / C L L o C m u r t c e p S t n i r p S t s u r T h g u o r h T s s a P A s s a l C 1 - 7 0 0 2 s e n i L r i A a t l e D p r o C l a t i p a C s a t n e V / P L y t l a e R s a t n e V p r o C h c r a e s e R m a L o C y g r e n E y a w a h t a H e r i h s k r e B C L L I I I o C m u r t c e p S p r o C y e l k r e B R W o C & s r u o m e N e d t n o P u d I E o C y g o l o n h c e T C X D c n I e c r u o S i N d t L k n a B G F U M Y N / c n I m e l y X p r o C g n i k n a B i u s t i M o m o t i m u S C L L a i d e M l a s r e v i n U C B N C L P k n a B s d y o l L 2 o N p r o C s a t n i C c n I s e c n e i c S d a e l i G p r o C e c n a r u s s A o r P c n I P C H C L L e c n a n i F a c i r e m A f o p u o r G n e g a w s k l o V B A n e k n a B a d l i k s n E a k s i v a n i d n a k S p r o C s g n i d l o H r e g r e b m u l h c S y g r e n E e c r u o s r e v E p r o C t e e r t S e t a t S c n I m e h t n A k r o Y w e N / d t L k n a B a i l a r t s u A l a n o i t a N e h T / p r o C b a w h c S s e l r a h C V B e c n a n i F l a n o i t a n r e t n I l l e h S o C g n i d l o H s t p i r c S s s e r p x E D M / c n I o C & k c i m r o C c M C L L B e c n a n i F e R r e n t r a P c n I s g n i d l o H e l t s e N V N p e o r G G N I c n I e c n a i l l A s t o o B s n e e r g l a W V B s d n a l r e h t e N s g n i d l o H l a n o i t a n r e t n I z e l e d n o M k n a B t n e m p o l e v e D n a c i r e m A - r e t n I V N s e i r t s u d n I l l e s a B l l e d n o y L C L P p u o r G g n i k n a B s d y o l L P L t s u r T y t l a e R l a t i g i D l a e r t n o M f o k n a B e c r e m m o C f o k n a B l a i r e p m I n a i d a n a C k n a B t n e m p o l e v e D n a i s A C L P k n a B s y a l c r a B o C t s u r T & g n i k n a B h c n a r B a d a n a C f o k n a B l a y o R c n I r e p p e P r D g i r u e K V N l a n o i t a n r e t n I e c n a n i F l e n E p r o C l a i c n a n i F e n O l a t i p a C C L L l a t i p a C S U W M B C L L I I e c n a n i F S U r e y a B l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 3 0 0 , 2 $ S U 9 9 9 , 1 7 9 9 , 1 7 9 9 , 1 9 5 9 , 1 8 3 9 , 1 5 2 9 , 1 2 1 9 , 1 5 9 8 , 1 1 8 8 , 1 9 1 8 , 1 8 1 8 , 1 1 8 7 , 1 5 5 7 , 1 2 5 7 , 1 6 4 7 , 1 0 4 7 , 1 0 3 7 , 1 6 2 7 , 1 7 0 7 , 1 7 8 6 , 1 0 8 6 , 1 8 7 6 , 1 8 5 6 , 1 1 8 5 , 1 4 6 5 , 1 7 5 5 , 1 2 5 5 , 1 6 4 5 , 1 7 3 5 , 1 6 3 5 , 1 1 9 4 , 1 0 9 4 , 1 3 8 4 , 1 0 7 4 , 1 0 7 4 , 1 6 6 4 , 1 9 5 4 , 1 7 5 4 , 1 5 5 4 , 1 1 4 4 , 1 6 3 4 , 1 4 3 4 , 1 3 3 4 , 1 0 2 4 , 1 2 1 4 , 1 7 0 4 , 1 7 8 3 , 1 8 6 3 , 1 3 6 3 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 3 0 0 , 2 $ S U 9 9 9 , 1 7 9 9 , 1 7 9 9 , 1 9 5 9 , 1 8 3 9 , 1 5 2 9 , 1 2 1 9 , 1 5 9 8 , 1 1 8 8 , 1 9 1 8 , 1 8 1 8 , 1 1 8 7 , 1 5 5 7 , 1 2 5 7 , 1 6 4 7 , 1 0 4 7 , 1 0 3 7 , 1 6 2 7 , 1 7 0 7 , 1 7 8 6 , 1 0 8 6 , 1 8 7 6 , 1 8 5 6 , 1 1 8 5 , 1 4 6 5 , 1 7 5 5 , 1 2 5 5 , 1 6 4 5 , 1 7 3 5 , 1 6 3 5 , 1 1 9 4 , 1 0 9 4 , 1 3 8 4 , 1 0 7 4 , 1 0 7 4 , 1 6 6 4 , 1 9 5 4 , 1 7 5 4 , 1 5 5 4 , 1 1 4 4 , 1 6 3 4 , 1 4 3 4 , 1 3 3 4 , 1 0 2 4 , 1 2 1 4 , 1 7 0 4 , 1 7 8 3 , 1 8 6 3 , 1 3 6 3 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 3 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - C L L s g n i d l o H s a G y g r e n E n o i n i m o D p r o C e c i v r e S c i l b u P n i s n o c s i W C L P d e r e t r a h C d r a d n a t S p r o C l a i c n a n i F s n o i g e R c n I m o c . n o z a m A I I g n i d n u F l a b o l G e f i L l a p i c n i r P o C c i r t c e l E l a r e n e G c n I y g r e n E y k s u H c n I o C r e w o P c i r t c e l E n a c i r e m A S / A k n a B e k s n a D p r o C n o s s e K c M p r o C l a n o i t a N n l o c n i L g n i d n u F l a b o l G G A I o C r e s u e a h r e y e W c n I s e c i v r e S l a i c n a n i F n o s d i v a D - y e l r a H p r o C e c n a t p e c c A r o t o M n a s s i N g n i d n u F l a b o l G e f i L n a i d r a u G o C s a G & c i r t c e l E e c i v r e S c i l b u P c n I v r e s i F G A k n a b l l o r t n o K e h c s i h c i e r r e t s e O d t L s e n i L e p i P a d a n a C s n a r T d t L o C l a c i t u e c a m r a h P a d e k a T o C r e w o P a l e h a g n o n o M c n I s t e k r a M l a b o l G e o b C C L L t i d e r C M B I P L n o i s s i m s n a r T n r e t s a E s a x e T o C l a c i m e h C n a m t s a E C L P k n a B C B S H p r o C S B C c n I e v i t o m o t u A y l l i e R O ' p r o C l a t i p a C e r e e D n h o J k n a B s s a p m o C e h T / o C l a c i m e h C w o D A S e l a r e n e G e t e i c o S c n I s l l i M l a r e n e G P L y t l a e R e k u D P L p u o r G y t r e p o r P n o m i S c n I p u o r G h t l a e H d e t i n U c n I a s i V o C T K R k c o R t s e W c n I A S U s e l b m a r B C L L r e w o P G E S P t s u r T h g u o r h T s s a P A s s a l C 2 - 3 1 0 2 s e n i l r i A n a c i r e m A p r o C s e c i v r e S l a i c n a n i F r a l l i p r e t a C H O / c n I s e r a h s c n a B n o t g n i t n u H C L P s n o i t a c i n u m m o c e l e T h s i t i r B c n I s g n i d l o H e h c o R p r o C e m o c n I y t l a e R c n I a n t e A c n I s e c r u o s e R G O E l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 6 4 3 , 1 $ S U 1 3 3 , 1 1 2 3 , 1 5 6 2 , 1 2 6 2 , 1 9 4 2 , 1 6 2 2 , 1 4 2 2 , 1 3 0 2 , 1 0 9 1 , 1 2 8 1 , 1 7 5 1 , 1 9 4 1 , 1 9 9 0 , 1 4 9 0 , 1 6 8 0 , 1 1 6 0 , 1 7 3 0 , 1 6 2 0 , 1 6 2 0 , 1 2 2 0 , 1 0 2 0 , 1 4 1 0 , 1 4 1 0 , 1 4 1 0 , 1 3 1 0 , 1 0 1 0 , 1 8 0 0 , 1 3 0 0 , 1 1 0 0 , 1 5 9 9 4 9 9 3 9 9 2 9 9 9 8 9 8 8 9 7 8 9 6 8 9 5 8 9 5 8 9 2 8 9 9 7 9 8 7 9 3 7 9 0 7 9 8 6 9 5 6 9 4 5 9 3 5 9 1 2 9 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 6 4 3 , 1 $ S U 1 3 3 , 1 1 2 3 , 1 5 6 2 , 1 2 6 2 , 1 9 4 2 , 1 6 2 2 , 1 4 2 2 , 1 3 0 2 , 1 0 9 1 , 1 2 8 1 , 1 7 5 1 , 1 9 4 1 , 1 9 9 0 , 1 4 9 0 , 1 6 8 0 , 1 1 6 0 , 1 7 3 0 , 1 6 2 0 , 1 6 2 0 , 1 2 2 0 , 1 0 2 0 , 1 4 1 0 , 1 4 1 0 , 1 4 1 0 , 1 3 1 0 , 1 0 1 0 , 1 8 0 0 , 1 3 0 0 , 1 1 0 0 , 1 5 9 9 4 9 9 3 9 9 2 9 9 9 8 9 8 8 9 7 8 9 6 8 9 5 8 9 5 8 9 2 8 9 9 7 9 8 7 9 3 7 9 0 7 9 8 6 9 5 6 9 4 5 9 3 5 9 1 2 9 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 4 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y N k r o Y w e N / a i l a r t s u A f o k n a B h t l a e w n o m m o C 2 t s u r T p u o r G e r t n e c S / 1 t s u r T p u o r G e r t n e c S p r o C g n i k n a B & t s u r T J F U i h s i b u s t i M s g n i d l o H a c i r e m A f o p r o C y r o t a r o b a L o C n o s i d E a i n r o f i l a C n r e h t u o S a i l a r t s u A f o k n a B h t l a e w n o m m o C c n I l a n o i t a n r e t n I s i r r o M p i l i h P A S A r o n i u q E p r o C c i f i c a P n o i n U o C y g r e n E E T D e h T / c n I s o C f o p u o r G c i l b u p r e t n I B A k n a b d e w S c n I a c i r e m A f o p u o r G e c n a r u s n i e R d t L a d a n a C e c n a n i F e r o c n e l G o C n o s i d E h t l a e w n o m m o C g n i d n u F l a b o l G e n e h t A A S A k n a B B N D c n I l a i c n a n i F l a i t n e d u r P c n I s c i t s o n g a i D t s e u Q P L s g n i d l o H a c i r e m A f o t s u r T e r a c h t l a e H d t L 6 1 0 2 t n e m t s e v n I s a e s r e v O d i r G e t a t S S C S e i C & l r a S e c n a n i F S U m i c l o H c n I e d i w d l r o W v e B n I h c s u B - r e s u e h n A p r o C e c n a n i F d t L e g n u B p r o C s w e o L A N k n a b i t i C g n i d n u F l a b o l G e f i L e v i t c e t o r P ' p r o C s y d o o M I g n i d n u F l a b o l G a o c i r P c n I s a x e T y g r e t n E d t L n o i t a i v A C O B o C n o t r u b i l l a H c n I n e g o i B p u o r G m u n U p r o C o c s y S A S e g n a r O u a b f u a r e d e i W r e u f t l a t s n a t i d e r K c n I s n i l l o C l l e w k c o R p r o C X T A G C L L s a s n a k r A y g r e t n E p r o C l a i c n a n i F A N C p r o C y g r e t n E c n I y g r e n E t n i o P r e t n e C c n I n o s i d E d e t a d i l o s n o C C L L g n i d n u F e r o c n e l G C L P l a t i p a C e n i l K h t i m S o x a l G L A m a h g n i m r i B / k n a B s n o i g e R P L s r e n t r a P m a e r t s d i M n a l l e g a M d t L p u o r G s h t r o w l o o W C L L c i f i c a P - a i g r o e G l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 2 9 8 9 8 8 0 6 8 7 5 8 3 5 8 0 5 8 3 2 8 4 0 8 0 0 8 7 8 7 3 8 7 4 7 7 4 7 7 1 7 7 1 7 7 9 6 7 9 6 7 7 6 7 8 5 7 3 5 7 5 4 7 4 4 7 8 3 7 4 3 7 3 3 7 1 0 7 1 0 7 5 9 6 5 9 6 5 9 6 1 9 6 5 8 6 0 7 6 9 6 6 0 6 6 9 5 6 6 5 6 5 3 6 0 3 6 4 2 6 3 2 6 8 1 6 8 1 6 3 1 6 2 1 6 2 1 6 0 1 6 5 0 6 0 0 6 9 9 5 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 2 9 8 9 8 8 0 6 8 7 5 8 3 5 8 0 5 8 3 2 8 4 0 8 0 0 8 7 8 7 3 8 7 4 7 7 4 7 7 1 7 7 1 7 7 9 6 7 9 6 7 7 6 7 8 5 7 3 5 7 5 4 7 4 4 7 8 3 7 4 3 7 3 3 7 1 0 7 1 0 7 5 9 6 5 9 6 5 9 6 1 9 6 5 8 6 0 7 6 9 6 6 0 6 6 9 5 6 6 5 6 5 3 6 0 3 6 4 2 6 3 2 6 8 1 6 8 1 6 3 1 6 2 1 6 2 1 6 0 1 6 5 0 6 0 0 6 9 9 5 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 5 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y N k r o Y w e N / d t L p u o r G g n i k n a B d n a l a e Z w e N & a i l a r t s u A t s u r T h g u o r h T s s a P 1 - A s s a l C 1 - 0 0 0 2 s e n i l r i A l a t n e n i t n o C t s u r T h g u o r h T s s a P A s s a l C 1 - 7 0 0 2 s e n i l r i A l a t n e n i t n o C c n I p u o r G s e i t i r u c e S a w i a D C L L o C E G a s e h g u H r e k a B c n I n a c i r e m A s d l o n y e R P L y t l a e R o d a n r o V c n I n o r t x e T p r o C c i r t c e l E & s a G r e t s e h c o R o C y a w l i a R n r e h t u o S k l o f r o N c n I o c r a V l l e w l i O l a n o i t a N d t L s e n i l e p i P T P A c n I y a B e e h T / o C n o s i d E o d e l o T o C r e w o P o i h O o C r J y e l g i r W m W P L g n i t a r e p O P R E c n I s e i t i u q E e t a t s E l a e R a i r d n a x e l A c n I p u o r G l a i c n a n i F s n e z i t i C V C e d B A S o b m B o p u r G i p r o C o c d l o H A S U C B R P L y t r e p o r P y t r e b i L d t L n e i r t u N c n I d r a z z i l B n o i s i v i t c A d t L y a w t e M - p r o c n u S C L L e c n a n i F a r r e t l A P L s r e n t r a P K O E N O A p S o l o a p n a S a s e t n I C L P n o A C L L e c n a n i F y t l a i c e p S S I X A d t L 3 1 0 2 l a t i p a C c e p o n i S c n I s g n i d l o H a r u m o N C L L e c n a n i F t o v i P c e t i c n I p r o C l a i c n a n i F e f i l u n a M C L L a i d e M r e n r a W c n I e n o Z o t u A c n I t r a m l a W c n I u d i a B I g n i d n u F l a b o l G e f i L n a t i l o p o r t e M p r o C l a t i p a C t s e W e l c a n n i P c n I p u o r G y g r e n E C E W 6 6 s p i l l i h P c n I c i f i t n e i c S r e h s i F o m r e h T c n I r o g i l b O - o C s e h g u H r e k a B / C L L o C E G a s e h g u H r e k a B d t L 1 1 0 2 e c n a n i F C O O N C p r o C n i t r a M d e e h k c o L c n I A C c n I s o C n a n n e L c M & h s r a M c n I a r r e t i V V C e d B A S a s m e F a l o C - a c o C l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 9 5 7 9 5 5 9 5 4 9 5 1 9 5 9 8 5 5 8 5 4 7 5 9 6 5 8 6 5 4 6 5 3 6 5 1 5 5 5 2 5 8 1 5 0 1 5 1 0 5 8 9 4 7 9 4 6 9 4 3 9 4 0 9 4 8 7 4 7 7 4 5 7 4 3 7 4 2 7 4 9 5 4 6 5 4 4 5 4 3 5 4 1 5 4 9 4 4 6 4 4 9 2 4 4 2 4 2 1 4 2 1 4 2 1 4 6 0 4 3 0 4 0 0 4 3 9 3 8 8 3 5 8 3 9 7 3 7 7 3 4 6 3 5 5 3 4 5 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 9 5 7 9 5 5 9 5 4 9 5 1 9 5 9 8 5 5 8 5 4 7 5 9 6 5 8 6 5 4 6 5 3 6 5 1 5 5 5 2 5 8 1 5 0 1 5 1 0 5 8 9 4 7 9 4 6 9 4 3 9 4 0 9 4 8 7 4 7 7 4 5 7 4 3 7 4 2 7 4 9 5 4 6 5 4 4 5 4 3 5 4 1 5 4 9 4 4 6 4 4 9 2 4 4 2 4 2 1 4 2 1 4 2 1 4 6 0 4 3 0 4 0 0 4 3 9 3 8 8 3 5 8 3 9 7 3 7 7 3 4 6 3 5 5 3 4 5 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 6 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - C L P e c n a n i F l a n o i t a n r e t n I T A B p r o C s e i g o l o n h c e T e f i L p r o C y t l a e R o c m K i c n I s e c i v r e S l a i c n a n i F e d i w n o i t a N C L P e c n a n i F y t l a i c e p S S I X A c n I s e i t i n u m m o C y a B n o l a v A C L L s s e r g o r P y g r e n E e k u D P L s t r o s e R & s l e t o H t s o H c n I o C t h g i w D & h c r u h C c n I C B A p r o C l a i c n a n i F n o t l u F y g r e n E a r p m e S d t L k n a B B S A p r o C s r e t n e C y c n e g e R d t L k n a B t s u r T i u s t i M o m o t i m u S p r o C g n i d l o H e d a r t i r e m A D T I I g n i d n u F l a b o l G l a u t u M s s a M P L y t l a e R s d o o w h g i H p r o C X R O I o C r e p a P l a n o i t a n r e t n I C L P l a t i p a C o e g a i D c n I a c i r e m o C A p S i n E c n I e r i p S c n I p u o r G e s i r p r e t n E e c i v r e S c i l b u P C L L e F a t n a S n r e h t r o N n o t g n i l r u B A S l a n o i t a n r e t n I l a t i p a C l a t o T e h T / o C c i r t c e l E t t e s n a g a r r a N C L L s a n i l o r a C y g r e n E e k u D d t L k n a B s a e s r e v O d e t i n U p r o C n o t a E c n I p u o r G e n i l e p i P a i b m u l o C o C y a w l i a R c i f i c a P n a i d a n a C p r o C m u e l o r t e P n o h t a r a M p r o C y g r e n E o r e l a V o C r e w o P o c i x e M w e N - s a x e T C L L s g n i d l o H c i r t c e l E n o t a E P L s e i t r e p o r P r e g n a T o C r e w o P n r e h t u o S p r o C l e k r a M t s u r T h g u o r h T s s a P A s s a l C 1 - 2 1 0 2 s e n i l r i A l a t n e n i t n o C p r o C s e c r u o s e R y g r e n E t n i o P r e t n e C c n I p u o r G l a i c n a n i F a r a g a i N t s r i F p r o C e c n a n i F a d n o H n a c i r e m A c n I p u o r G l a i c n a n i F p r o C n a t S p r o C n o A t s u r T s e i t r e p o r P w e i v r i a F c a l l i d a C ' s r e h c a e T o i r a t n O c n I s g n i d l o H S U n o c a e B e n O p r o c n a B S U A N k n a B n o i n U G F U M l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 4 3 0 4 3 3 9 2 9 8 2 6 8 2 2 8 2 7 7 2 7 7 2 0 5 2 8 2 2 1 2 2 6 1 2 0 1 2 7 0 2 2 0 2 4 7 1 7 5 1 7 5 1 5 6 0 , 0 5 1 6 2 7 , 5 2 1 1 1 1 , 0 0 1 3 0 1 , 0 0 1 7 3 0 , 0 5 0 1 0 , 0 5 7 7 0 , 0 5 0 0 0 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 8 2 6 , 7 8 2 $ S U 8 0 4 , 3 8 4 2 , 2 5 1 3 , 1 4 6 1 , 8 6 $ S U $ S U $ S U $ S U 6 9 9 , 7 4 $ S U 7 6 7 , 3 3 8 1 5 , 4 2 9 5 8 , 1 3 1 7 , 1 0 8 3 , 1 5 3 7 , 8 9 3 8 4 9 , 3 3 1 1 4 3 , 1 3 1 6 3 2 , 8 2 1 0 5 0 , 2 1 1 5 1 0 , 1 5 1 4 1 , 7 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 4 3 0 4 3 3 9 2 9 8 2 6 8 2 2 8 2 7 7 2 7 7 2 0 5 2 8 2 2 1 2 2 6 1 2 0 1 2 7 0 2 2 0 2 4 7 1 7 5 1 7 5 1 1 4 9 , 9 4 1 8 4 9 , 4 2 1 7 8 9 , 9 9 0 0 9 , 9 9 4 9 9 , 9 4 4 9 9 , 9 4 6 7 9 , 9 4 6 9 9 , 9 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 8 2 6 , 7 8 2 $ S U 8 0 4 , 3 8 4 2 , 2 5 1 3 , 1 4 6 1 , 8 6 $ S U $ S U $ S U $ S U 6 9 9 , 7 4 $ S U 7 6 7 , 3 3 8 1 5 , 4 2 9 5 8 , 1 3 1 7 , 1 0 8 3 , 1 5 3 7 , 8 9 3 8 4 9 , 3 3 1 1 4 3 , 1 3 1 6 3 2 , 8 2 1 0 5 0 , 2 1 1 5 1 0 , 1 5 1 4 1 , 7 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r o t i f o r P h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F s s o L 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F 〃 〃 〃 〃 〃 〃 - 7 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - d t L a d a n a C e c n a n i F r e g r e b m u l h c S A U k n a b o b a R e v e i t a r e p o o C c n I s g n i d l o H s m e t s y S E A B e h T / c n I t o p e D e m o H C L L e c n a n i F D M E o C d n a l d i M - s l e i n a D - r e h c r A p r o C l o n e h p m A o C & y l l i L i l E e h T / c n I p u o r G s e c i v r e S l a i c n a n i F d r o f t r a H c n I s e c i v r e S n o i t a m r o f n I l a n o i t a N y t i l e d i F C L L V W M k c o R t s e W p r o C e f i L e v i t c e t o r P C L P e c y o R - s l l o R V N k n a B G N I a c i r e m A f o p r o C g n i g a k c a P c n I x a f i u q E . o C & e s a h C n a g r o M P J . p r o C g n i k n a B c a p t s e W o C & o g r a F s l l e W E S c i r t c e l E r e d i e n h c S a n i h C f o k n a B l a i c r e m m o C d n a l a i r t s u d n I a i l a r t s u A f o k n a B h t l a e w n o m m o C . c n I , p u o r G s h c a S n a m d l o G k n a B a i l a r t s u A l a n o i t a N a i t o c S a v o N f o k n a B e t o N e t a R g n i t a o l F y r u s a e r T s e t a t S d e t i n U d n o B l a n o i t a n r e t n I t n e m n r e v o G i b a h D u b A d n o B l a n o i t a n r e t n I t n e m n r e v o G r a t a Q l l i B y r u s a e r T s e t a t S d e t i n U d n o B / e t o N y r u s a e r T s e t a t S d e t i n U d n o b t n e m n r e v o G s e t a c i f i t r e C h g u o r h T s s a P d e r u t c u r t S y l i m a f i t l u M c a M e i d d e r F n o i t a i c o s s A e g a g t r o M l a n o i t a N t n e m n r e v o G p i r t S t s e r e t n I e a M e i n n a F s e i t i r u c e s d e k c a b - e g a g t r o m y c n e g A / s d n o b y c n e g A I S C M E R c a M e i d d e r F I S C M E R e a M e i n n a F n o i t a i c o s s A e g a g t r o M l a n o i t a N t n e m n r e v o G I S C M E R c a M e i d d e r F l o o P I I e a M e i n n i G e a M e i n n a F l o o P d l o G c a M e i d d e r F I S C M E R e a M e i n n a F s p i r t S c a M e i d d e r F l o o P e a M e i n n a F G A k n a B e h c s t u e D l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 1 8 0 , 6 1 $ S U 6 9 7 , 5 4 8 6 , 2 4 5 5 , 2 4 1 5 , 2 6 8 4 , 1 1 9 8 2 4 8 2 3 6 4 5 5 0 0 5 0 7 3 5 3 3 2 3 1 5 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 7 8 4 , 8 6 $ S U 4 0 6 , 3 4 4 4 1 , 2 4 5 9 4 , 7 3 2 0 7 , 6 2 2 2 1 , 8 2 9 0 , 8 9 8 9 , 7 0 3 4 , 7 4 0 3 , 7 6 4 9 , 6 3 1 3 , 6 2 1 0 , 6 7 1 9 , 5 3 0 4 , 5 8 2 3 , 5 9 7 8 , 4 1 7 8 , 4 0 1 5 , 4 7 4 0 , 4 0 6 9 , 3 2 3 9 , 3 2 0 9 , 3 9 9 8 , 3 6 8 8 , 3 2 3 7 , 3 7 4 2 , 3 8 9 9 , 2 9 8 9 , 2 7 4 9 , 2 5 4 9 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 1 8 0 , 6 1 $ S U 6 9 7 , 5 4 8 6 , 2 4 5 5 , 2 4 1 5 , 2 6 8 4 , 1 1 9 8 2 4 8 2 3 6 4 5 5 0 0 5 0 7 3 5 3 3 2 3 1 5 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 7 8 4 , 8 6 $ S U 4 0 6 , 3 4 4 4 1 , 2 4 5 9 4 , 7 3 2 0 7 , 6 2 2 2 1 , 8 2 9 0 , 8 9 8 9 , 7 0 3 4 , 7 4 0 3 , 7 6 4 9 , 6 3 1 3 , 6 2 1 0 , 6 7 1 9 , 5 3 0 4 , 5 8 2 3 , 5 9 7 8 , 4 1 7 8 , 4 0 1 5 , 4 7 4 0 , 4 0 6 9 , 3 2 3 9 , 3 2 0 9 , 3 9 9 8 , 3 6 8 8 , 3 2 3 7 , 3 7 4 2 , 3 8 9 9 , 2 9 8 9 , 2 7 4 9 , 2 5 4 9 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 8 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - t s u r T r e t s a M t n u o c c A t i d e r C s s e r p x E n a c i r e m A A t s u r T r e n w O r e t s a M n a l p r o o l F t i d e r C d r o F B - 8 1 0 2 t s u r T s e l b a v i e c e R o t u A i a d n u y H t s u r T e t o N n o i t u c e x E d r a C r e v o c s i D t s u r T d r a C t i d e r C A B t s u r T e c n a u s s I e s a h C C O B I - 7 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C B B D G C s e l b a v i e c e R t s u r T r e n w O r e t s a M n a s s i N D N I - 8 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C X B t s u r T n o i t u c e x E t e s s A - i t l u M e n O l a t i p a C 2 C - 2 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C s y a l c r a B - S B U B - 6 1 0 2 t s u r T r e n w O r e t s a M z n e B - s e d e c r e M 1 V E R - 6 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F t s u r T e g a g t r o M L L A T - 8 1 0 2 S M C B B C L L I I g n i d n u F e k a e p a s e h C 0 1 C - 3 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 7 P J - 7 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C C C M P J t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M . P . J t s u r T r e n w O r e t s a M t n e m p i u q E l a i c n a n i F o v l o V 0 1 C - 8 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B U 1 V E R - 5 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 2 - 7 1 0 2 t s u r T s e l b a v i e c e R e l i b o m o t u A r e m u s n o C l a i c n a n i F M G R V R I - 8 1 0 2 t s u r T p r o C s e i t i r u c e S e g a g t r o M S G t s u r T r e n w O 2 - 7 1 0 2 s e l b a v i e c e R o t u A a d n o H t s u r T e g a g t r o M 5 2 E R C C - 5 1 0 2 M M O C B - 6 1 0 2 t s u r T e s a e L o t u A n a s s i N I I p r o C s e i t i r u c e S e g a g t r o M S G 3 E C I - 7 1 0 2 t s u r T e g a r o t S d l o C 5 K N B - 7 1 0 2 K N A B 6 K N B - 7 1 0 2 K N A B I I K W - 6 1 0 2 2 R - 0 1 0 2 t s u r T s e t o N d e e t n a r a u G A U C N l o o P I e a M e i n n i G 1 R - 0 1 0 2 t s u r T s e t o N d e e t n a r a u G A U C N n o i t a i c o s s A e g a g t r o M l a n o i t a N l a r e d e F I C M E R k r a m h c n e B e a M e i n n a F p r o C e g a g t r o M n a o L e m o H l a r e d e F p r o C y a w l i a R n o t n a C - n o o l w o K c a M e i d d e r F a d a n a C c e b e u Q f o e c n i v o r P s k n a B t i d e r C m r a F l a r e d e F - A M N G C M L H F t s u r T e c n a u s s I d r a C t i d e r C k n a b i t i C s e i t i r u c e s d e k c a b - t e s s A s e t a c i f i t r e C h g u o r h T s s a P d e r u t c u r t S y l i m a f i t l u M c a M e i d d e r F l o o P d l o G n o N c a M e i d d e r F s e c A - e a M e i n n a F e a M e i n n i G l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 0 0 8 , 2 $ S U 0 5 7 , 2 2 7 6 , 2 6 9 5 , 2 6 7 5 , 2 4 5 5 , 2 2 1 5 , 2 6 8 3 , 2 6 0 3 , 2 2 5 2 , 2 7 2 1 , 2 3 8 0 , 2 1 6 0 , 2 6 4 0 , 2 4 3 0 , 2 7 1 0 , 2 0 1 0 , 2 6 0 0 , 2 9 7 9 , 1 7 7 9 , 1 4 7 9 , 1 0 6 9 , 1 3 5 9 , 1 4 4 9 , 1 0 4 9 , 1 1 3 9 , 1 8 6 8 , 1 3 6 8 , 1 1 1 8 , 1 1 0 8 , 1 9 9 7 , 1 8 8 7 , 1 3 8 7 , 1 1 7 7 , 1 6 6 7 , 1 6 5 7 , 1 2 4 7 , 1 2 2 7 , 1 7 0 7 , 1 0 7 6 , 1 3 0 6 , 1 8 9 5 , 1 1 4 5 , 1 0 4 5 , 1 8 3 5 , 1 0 0 5 , 1 7 9 4 , 1 1 8 4 , 1 5 6 4 , 1 0 6 4 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 0 0 8 , 2 $ S U 0 5 7 , 2 2 7 6 , 2 6 9 5 , 2 6 7 5 , 2 4 5 5 , 2 2 1 5 , 2 6 8 3 , 2 6 0 3 , 2 2 5 2 , 2 7 2 1 , 2 3 8 0 , 2 1 6 0 , 2 6 4 0 , 2 4 3 0 , 2 7 1 0 , 2 0 1 0 , 2 6 0 0 , 2 9 7 9 , 1 7 7 9 , 1 4 7 9 , 1 0 6 9 , 1 3 5 9 , 1 4 4 9 , 1 0 4 9 , 1 1 3 9 , 1 8 6 8 , 1 3 6 8 , 1 1 1 8 , 1 1 0 8 , 1 9 9 7 , 1 8 8 7 , 1 3 8 7 , 1 1 7 7 , 1 6 6 7 , 1 6 5 7 , 1 2 4 7 , 1 2 2 7 , 1 7 0 7 , 1 0 7 6 , 1 3 0 6 , 1 8 9 5 , 1 1 4 5 , 1 0 4 5 , 1 8 3 5 , 1 0 0 5 , 1 7 9 4 , 1 1 8 4 , 1 5 6 4 , 1 0 6 4 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 9 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 C - 6 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B D M P J 0 2 C L - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W B - 7 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H t s u r T r e n w O A - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T A - 7 1 0 2 t s u r T e s a e L o t u A n a s s i N 1 1 C - 8 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B U t s u r T e g a g t r o M 2 1 E R C C - 3 1 0 2 M M O C C - 7 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 4 B - 8 1 0 2 K R A M H C N E B 9 1 C - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J 0 3 C - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W 6 C - 3 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C s y a l c r a B - S B U t s u r T e g a g t r o M 2 2 E R C C - 5 1 0 2 M M O C 8 P - 7 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C t s u r T r e n w O C - 7 1 0 2 s e l b a v i e c e R o t u A a t o y o T t s u r T r e n w O B - 6 1 0 2 s e l b a v i e c e R o t u A a t o y o T B - 8 1 0 2 t s u r T e s a e L o t u A z n e B - s e d e c r e M t s u r T r e n w O C - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T 2 1 J C G - 3 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G 3 H - 8 1 0 2 t s u r T I l a t i p a C y e l n a t S n a g r o M 3 C G - 1 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G P L g n i d n u F e s a e L t e e l F z t r e H 1 3 C - 6 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 7 C - 7 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B D M P J 3 - 6 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G 1 1 B U - 6 1 0 2 t s u r T I l a t i p a C y e l n a t S n a g r o M B - 7 1 0 2 t s u r T e s a e L o t u A t i d e r C d r o F 8 C - 3 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 5 3 C G - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C 5 C - 3 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C s y a l c r a B - S B U C - 6 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H t s u r T e g a g t r o M 6 B - 8 1 0 2 K R A M H C N E B 4 - 0 1 0 2 t s u r T n a o L t n e d u t S t e n l e N 4 - 5 0 0 2 t s u r T n a o L t n e d u t S M L S t s u r T r e n w O o t u A x a M r a C t s u r T e s a e L o t u A t i d e r C d r o F t s u r T e s a e L e l c i h e V W M B 4 1 K N B - 8 1 0 2 K N A B C L L 2 V P S s l e e h W 5 P J - 7 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C C C M P J A - 7 1 0 2 t s u r T e s a e L o t u A t i d e r C d r o F C L L 0 1 o N e r u t n e d n I h t u o s d E A - 5 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 1 - 7 1 0 2 t s u r T n a o L t n e d u t S t n e i v a N 3 - 8 1 0 2 t s u r T n a o L t n e d u t S t e n l e N t s u r T e g a g t r o M 1 C P - 5 1 0 2 M M O C 1 H - 7 1 0 2 t s u r T I l a t i p a C y e l n a t S n a g r o M A - 8 1 0 2 t s u r T e s a e L o t u A t i d e r C d r o F 6 - 3 1 0 2 t s u r T n a o L t n e d u t S M L S t s u r T r e n w O r e t s a M n a l p r o o l F W M B l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 4 4 , 1 $ S U 6 4 4 , 1 3 4 4 , 1 2 3 4 , 1 6 9 3 , 1 0 9 3 , 1 8 8 3 , 1 0 6 3 , 1 9 9 2 , 1 3 5 2 , 1 1 5 2 , 1 6 4 2 , 1 3 4 2 , 1 6 9 1 , 1 9 4 0 , 1 3 4 0 , 1 6 3 0 , 1 3 2 0 , 1 9 0 0 , 1 8 0 0 , 1 6 0 0 , 1 4 0 0 , 1 2 0 0 , 1 0 0 0 , 1 6 8 9 5 8 9 9 6 9 5 4 9 1 1 9 7 9 8 3 7 8 3 5 8 1 4 8 2 2 8 6 1 8 3 0 8 9 9 7 8 9 7 2 9 7 6 8 7 6 7 7 0 7 7 3 5 7 6 1 7 6 0 7 9 9 6 8 8 6 0 7 6 9 4 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 4 4 , 1 $ S U 6 4 4 , 1 3 4 4 , 1 2 3 4 , 1 6 9 3 , 1 0 9 3 , 1 8 8 3 , 1 0 6 3 , 1 9 9 2 , 1 3 5 2 , 1 1 5 2 , 1 6 4 2 , 1 3 4 2 , 1 6 9 1 , 1 9 4 0 , 1 3 4 0 , 1 6 3 0 , 1 3 2 0 , 1 9 0 0 , 1 8 0 0 , 1 6 0 0 , 1 4 0 0 , 1 2 0 0 , 1 0 0 0 , 1 6 8 9 5 8 9 9 6 9 5 4 9 1 1 9 7 9 8 3 7 8 3 5 8 1 4 8 2 2 8 6 1 8 3 0 8 9 9 7 8 9 7 2 9 7 6 8 7 6 7 7 0 7 7 3 5 7 6 1 7 6 0 7 9 9 6 8 8 6 0 7 6 9 4 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 2 C - 5 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 1 C - 6 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J A - 8 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H 4 - 8 1 0 2 t s u r T s e l b a v i e c e R e l i b o m o t u A r e m u s n o C l a i c n a n i F M G t s u r T r e n w O B - 7 1 0 2 s e l b a v i e c e R o t u A n a s s i N t s u r T e g a g t r o M 0 2 E R C C - 4 1 0 2 M M O C 9 1 C 4 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 1 2 C - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J t s u r T r e n w O B - 8 1 0 2 s e l b a v i e c e R o t u A n a s s i N C - 7 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H t s u r T r e n w O B - 6 1 0 2 s e l b a v i e c e R o t u A n a s s i N 4 C - 1 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B R F W 1 3 C - 5 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J 1 1 C G - 3 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M P J t s u r T r e n w O 2 - 8 1 0 2 s e l b a v i e c e R o t u A a d n o H 1 - 8 1 0 2 t s u r T r e n w O o t u A x a M r a C 9 C L - 2 1 0 2 6 C - 2 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 1 - 7 1 0 2 e l i b o m o t u A r e m u s n o C l a i c n a n i F M G 1 V E R - 7 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 3 - 7 1 0 2 t s u r T n a o L t n e d u t S t n e i v a N 1 V E R - 4 1 0 2 t i d e r C d r o F / t s u r T r e n w O o t u A t i d e r C d r o F t s u r T r e n w O 3 - 8 1 0 2 s e l b a v i e c e R o t u A a d n o H 1 C - 1 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C E R C F C A - 8 1 0 2 t s u r T e s a e L o t u A z n e B - s e d e c r e M 1 - 8 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G t s u r T r e n w O D - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T t s u r T e g a g t r o M 9 1 C L - 5 1 0 2 M M O C 1 - 3 1 0 2 t s u r T n a o L t n e d u t S M L S 3 - 8 1 0 2 t s u r T s e l b a v i e c e R o t u A y l l A 4 - 3 1 0 2 t s u r T n a o L t n e d u t S M L S 8 2 C - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W B - 6 1 0 2 t s u r T e s a e L o t u A z n e B - s e d e c r e M 1 - 8 1 0 2 t s u r T s e l b a v i e c e R o t u A z n e B - s e d e c r e M t s u r T e g a g t r o M P 0 8 2 - 7 1 0 2 e u n e v A k r a P 0 8 2 2 V E R - 5 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 1 - 8 1 0 2 t s u r T n a o L t n e d u t S t n e i v a N 3 - 2 1 0 2 t s u r T n a o L t n e d u t S M L S t s u r T r e n w O B - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T A B - 8 1 0 2 t s u r T r e n w O r e t s a M z n e B - s e d e c r e M 2 V E R - 4 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F t s u r T e g a g t r o M 6 E R C C - 3 1 0 2 M M O C 2 - 6 0 0 2 t s u r T n a o L t n e d u t S t e n l e N 1 - 7 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G t s u r T e g a g t r o M 1 C D - 5 1 0 2 M M O C C L L g n i c n a n i F t e e l F e s i r p r e t n E 1 - 2 1 0 2 t s u r T n a o L t n e d u t S t e n l e N 1 - 8 1 0 2 t s u r T n a o L t n e d u t S a a e h P 2 - 8 1 0 2 t s u r T n a o L t n e d u t S p u o r G C M C E l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H 0 4 6 6 3 6 7 0 6 5 8 5 3 7 5 1 7 5 5 5 5 4 1 5 8 0 5 5 0 5 0 0 5 9 9 4 5 8 4 3 3 4 4 0 4 0 9 3 7 7 3 6 6 3 7 5 3 7 3 3 1 3 3 7 1 3 0 0 3 9 6 2 4 6 2 9 5 2 8 4 2 4 1 2 9 9 1 7 8 1 1 4 1 3 2 1 6 9 2 8 5 4 2 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U ) d e u n i t n o C ( 0 0 0 , 2 $ S U 0 0 5 , 1 $ S U 0 6 4 , 0 7 $ S U 9 3 0 , 2 $ S U 3 5 3 $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 4 4 0 2 0 4 6 6 3 6 7 0 6 5 8 5 3 7 5 1 7 5 5 5 5 4 1 5 8 0 5 5 0 5 0 0 5 9 9 4 5 8 4 3 3 4 4 0 4 0 9 3 7 7 3 6 6 3 7 5 3 7 3 3 1 3 3 7 1 3 0 0 3 9 6 2 4 6 2 9 5 2 8 4 2 4 1 2 9 9 1 7 8 1 1 4 1 3 2 1 6 9 2 8 5 4 2 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 0 0 , 2 $ S U 0 0 5 , 1 $ S U 0 6 4 , 0 7 $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 9 3 0 , 2 $ S U 3 5 3 $ S U 9 1 0 , 1 5 8 0 , 1 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c - 1 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M P J t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M P J 3 - 8 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G N D L W - 2 1 0 2 6 C - 2 1 0 2 A - 5 1 0 2 t s u r T s e l b a v i e c e R o t u A i a d n u y H t s u r T e g a g t r o M D O B I - 8 1 0 2 S G B D t s u r T e g a g t r o M A V A S - 6 1 0 2 M M O C t s u r T e g a g t r o M 2 C L - 1 1 0 2 S B U B D A - 8 1 0 2 t s u r T e s a e L t e e l F I R A 8 1 C G - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G t s u r T e g a g t r o M 9 1 E R C C - 4 1 0 2 M M O C A - 6 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F t s u r T e g a g t r o M 2 D C - 6 1 0 2 D C 8 1 C - 4 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 6 1 C - 4 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 4 2 C L - 6 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W t s u r T r e n w O 4 - 7 1 0 2 s e l b a v i e c e R o t u A a d n o H A - 7 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H 5 2 C - 4 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B R F W 2 - 8 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G 4 1 C - 3 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J 1 S X N - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W 2 - 7 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G 1 G S - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W 3 2 C G - 4 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C t s u r T r e n w O 2 - 6 1 0 2 s e l b a v i e c e R o t u A a d n o H 2 - 6 1 0 2 t s u r T e s a e L e l c i h e V W M B 1 - 8 1 0 2 t s u r T e s a e L e l c i h e V W M B B - 8 1 0 2 t s u r T e s a e L t e e l F I R A 5 C - 1 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B R F W t s u r T r e n w O 4 - 5 1 0 2 s e l b a v i e c e R o t u A a d n o H 4 2 C G - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G t s u r T e g a g t r o M 5 1 E R C C - 4 1 0 2 M M O C 2 C - 0 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G 1 C - 0 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G 2 - 7 1 0 2 t s u r T e s a e L e l c i h e V W M B Y N k r o Y w e N / a d a n a C f o k n a B l a y o R r e p a p l a i c r e m m o C Y N / k n a B n o i n i m o D - o t n o r o T s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N . . P L I I d n u F l a t i p a C a r e v a m i r P A - 8 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F l a b o l G C M S T . c n I , s m e t s y S r e h t e A c i l e t n e S s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N I I F A T V e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e d u l c n o C ( 3 1 3 $ S U 0 3 7 $ S U 0 0 8 4 7 1 $ S U $ S U 3 9 3 , 2 $ S U 5 7 7 $ S U 2 - 4 1 - - - 3 1 3 $ S U 4 6 3 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 0 3 7 $ S U 3 8 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 0 0 8 4 7 1 $ S U $ S U 3 9 3 , 2 $ S U 5 7 7 $ S U 2 5 9 , 1 7 4 1 , 4 1 5 4 7 3 2 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c - - - - - - . c n I , s b a L X E N C . c n I , m u i v o n n I . c n I , x i n o c o e N s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N . p r o C g n i t h g i L s d e L d i u q i L I I I F A T V s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N d n u F h t w o r G s k c o t s d e d a r t y l c i l b u P a i t n a u q A . c n I , s e i g o l o n h c e T V 5 I I F A T V - 2 0 1 - 4 E L B A T ) 1 e t o N ( e c n a l a B g n i d n E t n u o m A ) s d n a s u o h T n I ( l a s o p s i D s t i n U / s e r a h S n o s s o L / n i a G e u l a V g n i y r r a C t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( l a s o p s i D n o i t i s i u q c A e c n a l a B g n i n n i g e B f o e r u t a N p i h s n o i t a l e R y t r a p - r e t n u o C t n e m e t a t S l a i c n a n F i t n u o c c A s e i t i r u c e S e l b a t e k r a M e m a N d n a e p y T e m a N y n a p m o C L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 3 $ T N T S A E L T A F O S E C I R P R O S T S O C T A F O D E S O P S I D D N A D E R I U Q C A S E I T I R U C E S E L B A T E K R A M ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T 7 3 8 , 8 9 4 $ 0 5 1 3 9 , 7 7 5 , 3 9 3 1 1 - 3 1 4 , 1 0 6 , 0 2 5 5 7 , 4 4 $ S U 2 0 6 , 8 2 8 3 2 , 7 2 3 2 1 , 3 2 4 9 8 , 8 1 4 9 5 , 2 1 9 5 1 , 1 1 8 2 9 , 8 6 2 7 , 7 2 6 4 , 7 4 9 5 , 3 - - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 4 1 3 , 3 8 2 $ S U ) d e u n i t n o C ( 4 6 1 , 8 6 $ S U 8 4 2 , 2 $ S U - - - - - - - - - - - - - - - - - - ) 8 6 2 , 9 7 1 , 1 ( 1 4 2 , 1 3 8 , 1 3 7 9 , 1 5 6 0 2 3 , 8 5 - ) 7 3 ( $ S U 7 2 0 , 6 $ S U 0 9 9 , 5 $ S U ) 8 ( ) 2 ( ) 4 4 ( ) 8 2 1 ( ) 6 1 ( ) 2 4 1 ( ) 2 5 1 ( ) 7 8 1 ( ) 7 2 1 ( - - - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 2 9 6 8 2 1 , 2 1 2 1 2 , 1 2 8 4 , 2 1 2 3 7 , 7 1 0 0 0 , 1 7 5 2 , 2 1 0 6 8 , 8 3 5 4 , 7 5 7 0 , 1 1 6 6 1 , 1 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 4 8 6 0 0 0 , 2 1 0 1 2 , 1 8 3 4 , 2 1 0 9 5 , 7 1 4 8 9 3 7 6 , 8 6 2 3 , 7 5 0 1 , 2 1 5 7 0 , 1 1 6 6 1 , 1 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 0 0 , 0 1 $ S U 0 0 0 , 0 1 $ S U ) 7 3 6 , 2 ( $ S U 3 8 8 , 3 0 4 $ S U 6 4 2 , 1 0 4 $ S U 8 4 3 4 $ S U 3 2 1 , 6 0 1 $ S U 1 7 1 , 6 0 1 $ S U $ S U 2 8 6 , 6 7 1 $ S U 5 2 7 , 6 7 1 $ S U - - - - - - - - - - - - - - - - 2 5 8 , 0 1 $ S U 3 9 2 , 1 1 2 0 1 , 8 1 9 9 2 , 9 8 6 7 , 8 1 9 1 7 , 3 1 0 9 4 , 0 1 3 7 5 , 8 5 7 5 , 0 1 4 7 4 , 3 1 6 7 5 , 3 8 6 1 , 1 2 - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 6 7 9 , 3 8 4 $ S U 4 0 5 , 4 2 1 $ S U 1 6 8 , 5 7 1 $ S U - - - - - - - - - - - - - - - - - - - - - $ - $ - $ - 7 3 8 , 8 9 4 $ 0 5 - $ - - - - - - - - 0 8 0 , 2 7 2 , 2 6 2 7 7 8 , 1 1 2 , 9 0 3 0 2 3 , 1 6 3 , 2 0 4 7 , 3 9 4 , 6 2 9 - y r a i d i s b u S y r a i d i s b u S 6 7 8 , 0 4 $ S U 1 1 9 , 9 2 8 1 0 , 0 1 7 6 8 , 6 2 6 5 2 , 1 1 6 7 , 1 4 2 0 , 7 1 2 2 7 , 2 1 1 8 1 , 6 0 5 4 , 1 3 7 0 , 1 1 - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 3 1 0 , 0 1 $ S U 9 8 6 , 2 0 2 $ S U 1 0 9 , 9 4 $ S U 7 9 9 , 2 $ S U - - - - - - - - - - - - - - - - 9 7 2 , 9 0 3 , 1 0 2 3 , 8 5 - 3 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - e t o N ( d o h t e m y t i u q e g n i s u r o f d e t n u o c c a s t n e m t s e v n I 〃 ) 2 e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t y t i u q e d e d a r t y l c i l b u p - n o N s t n e m t s e v n i l a b o l G C M S T s k c o t s d e d a r t y l c i l b u P h c e t o M g n i j n a N C M S T t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F n a w i a T , n o i t a r o p r o C C P C r e p a p l a i c r e m m o C C M S T e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F p r o C a c i r e m A f o k n a B d n o b e t a r o p r o C l a b o l G C M S T 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 d e z i t r o m a t a s t e s s a l a i c n a n i F t s o c / Y N A U k n a b o b a R e v e i t a r e p o o C p r o C s e i g o l o n h c e T d e t i n U y e l n a t S n a g r o M p r o C e n e g l e C k n a B t n e m p o l e v e D n a i s A k n a B t n e m p o l e v e D . o C & e s a h C n a g r o M P J n a c i r e m A r e t n I p r o C h t l a e H S V C c n I p u o r g i t i C p r o C t s a c m o C c n I T & T A p r o C l a t i p a C T A B e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F d n o B / e t o N y r u s a e r T s e t a t S d e t i n U d n o b t n e m n r e v o G 〃 〃 g n i t a o l F y r u s a e r T s e t a t S d e t i n U l l i B y r u s a e r T s e t a t S d e t i n U e t o N e t a R ) 1 e t o N ( e c n a l a B g n i d n E t n u o m A ) s d n a s u o h T n I ( l a s o p s i D s t i n U / s e r a h S n o s s o L / n i a G e u l a V g n i y r r a C t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( l a s o p s i D n o i t i s i u q c A e c n a l a B g n i n n i g e B f o e r u t a N p i h s n o i t a l e R y t r a p - r e t n u o C t n e m e t a t S l a i c n a n F i t n u o c c A s e i t i r u c e S e l b a t e k r a M e m a N d n a e p y T e m a N y n a p m o C 4 8 7 , 1 3 $ S U 4 2 3 , 7 2 6 4 0 , 6 2 5 1 5 , 5 2 0 3 1 , 5 2 1 6 7 , 4 2 7 0 5 , 1 2 5 5 5 , 8 1 0 9 4 , 7 1 5 1 9 , 6 1 5 8 4 , 6 1 5 4 0 , 5 1 9 5 8 , 3 1 2 7 7 , 2 1 9 0 2 , 2 1 0 9 5 , 0 1 9 2 1 , 2 0 2 0 , 2 7 5 1 , 1 - - - - - - - - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 7 8 4 , 8 6 $ S U 4 0 6 , 3 4 5 9 4 , 7 3 $ S U $ S U 5 8 2 , 7 2 $ S U 4 0 3 , 7 $ S U - $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 3 6 ( $ S U 9 8 0 , 4 $ S U 6 2 0 , 4 $ S U ) 2 1 1 ( ) 9 6 2 , 1 ( ) 1 3 1 ( ) 6 ( ) 5 2 ( 6 8 2 ) 3 5 ( ) 6 ( ) 6 4 ( - ) 1 1 ( ) 3 2 ( 6 ) 4 3 ( - ) 0 3 ( ) 4 ( ) 7 6 ( 1 4 6 ) 0 2 5 ( 8 2 2 1 2 ) 5 6 ( ) 6 9 1 ( 0 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 1 6 3 , 1 2 2 9 , 9 1 7 8 3 , 1 7 1 5 7 2 5 , 4 2 7 9 1 , 2 6 1 4 0 7 8 1 1 9 3 5 2 3 , 1 - 5 5 2 9 2 4 , 1 9 7 2 , 3 1 6 4 0 , 9 4 3 7 7 , 7 4 0 5 3 , 0 4 6 7 6 , 6 4 2 8 7 , 4 2 9 9 4 , 9 2 1 1 7 , 1 1 4 4 1 , 6 8 9 4 9 , 7 6 6 8 5 , 8 9 1 4 1 0 , 3 7 1 0 8 3 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 9 4 2 , 1 3 5 6 , 8 1 6 5 2 , 1 2 9 4 3 1 8 , 4 2 1 9 1 , 2 6 1 1 5 6 2 1 1 9 3 9 7 2 , 1 - 4 4 2 6 0 4 , 1 5 8 2 , 3 1 2 1 0 , 9 4 3 4 7 , 7 4 6 4 3 , 0 4 9 0 6 , 6 4 6 4 8 , 4 2 0 0 5 , 9 2 1 9 1 , 1 1 6 5 3 , 6 8 4 8 8 , 7 6 4 1 6 , 8 9 1 8 1 8 , 2 7 1 0 1 4 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U ) 3 ( $ S U 6 4 3 , 0 2 $ S U 3 4 3 , 0 2 $ S U ) 6 1 ( ) 8 3 ( 6 ) 4 ( $ S U $ S U 2 9 1 , 3 2 8 6 2 , 4 2 $ S U $ S U 6 7 1 , 3 2 0 3 2 , 4 2 $ S U $ S U $ S U 3 3 2 , 1 1 $ S U 9 3 2 , 1 1 $ S U $ S U 7 2 2 , 5 1 $ S U 3 2 2 , 5 1 $ S U - $ S U 0 0 0 , 0 5 $ S U 0 0 0 , 0 5 $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 4 9 , 5 3 $ S U 4 3 5 , 5 5 3 0 , 9 2 9 5 0 , 7 2 8 8 6 , 5 2 9 9 9 , 6 8 1 7 8 9 , 5 4 6 1 3 , 9 1 1 5 7 , 7 1 2 6 3 , 8 1 3 3 4 , 6 1 2 7 3 , 5 1 8 6 3 , 5 1 2 0 2 , 6 2 8 6 2 , 1 6 4 9 4 , 0 1 7 0 5 , 7 4 0 6 3 , 2 4 0 8 6 , 7 4 8 4 7 , 4 2 8 9 4 , 9 2 - 1 7 2 , 3 8 1 3 9 , 5 6 6 8 5 , 8 9 1 0 1 2 , 7 5 1 0 8 3 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 5 6 8 , 0 4 $ S U 0 2 7 , 7 2 6 6 2 , 6 1 $ S U $ S U 8 7 8 , 5 2 $ S U - - $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 7 2 , 1 4 - - - 5 4 1 8 7 3 , 2 - 6 6 8 , 2 9 9 5 , 1 1 - 5 1 0 , 2 8 5 7 , 5 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 8 2 3 , 8 4 $ S U 1 1 2 , 9 3 2 2 7 , 5 4 $ S U $ S U 5 0 8 , 2 1 $ S U 4 4 5 , 2 2 $ S U 0 0 0 , 0 5 $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 3 0 6 1 6 G l o o P C P N L M H D E F 5 9 4 4 M B l o o P A M N F 8 4 9 1 M B l o o P A M N F 2 5 3 2 A C l o o P A M N F 5 r Y 0 3 A B T A M N F 2 9 5 1 6 G l o o P C P N L M H D E F 4 5 6 1 6 G l o o P C P N L M H D E F 8 6 4 5 A M l o o P I I A M N G 3 9 4 4 M B l o o P A M N F e g a g t r o M l a n o i t a N t n e m n r e v o G 3 5 5 1 6 G l o o P C P N L M H D E F n o i t a i c o s s A e g a g t r o M l a n o i t a N t n e m n r e v o G 9 9 7 8 0 G l o o P C P N L M H D E F k n a B n a o L e m o H l a r e d e F s e t o N t n u o c s i D 4 9 5 0 6 G l o o P C P N L M H D E F 4 r Y 0 3 A B T I I A M N G 5 . 3 r Y 5 1 A B T A M N F 5 . 3 r Y 0 3 A B T I I A M N G n o i t a i c o s s A 2 3 3 5 A M l o o P I I A M N G 5 r Y 0 3 A B T I I A M N G 9 6 1 2 A C l o o P A M N F 3 7 7 8 0 G l o o P C P N L M H D E F 5 . 3 r Y 0 3 A B T A M N F 3 3 r Y 0 3 A B T A M N F r Y 5 1 A B T A M N F 5 . 4 r Y 0 3 A B T A M N F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 1 8 6 4 M B L o o P A M N F s e i t i r u c e s d e k c a b - e g a g t r o m y c n e g A / s d n o b y c n e g A l a b o l G C M S T e u l a v r i a f t a s t e s s a l a i c n a n i F e c n a u s s I d r a C t i d e r C k n a b i t i C s e i t i r u c e s d e k c a b - t e s s A e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t t s u r T 〃 〃 〃 〃 t n u o c c A t i d e r C s s e r p x E n a c i r e m A e t o N n o i t u c e x E d r a C r e v o c s i D t s u r T e c n a u s s I e s a h C t s u r T t e s s A - i t l u M e n O l a t i p a C t s u r T n o i t u c e x E t s u r T r e t s a M t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F J F U i h s i b u s t i M - o y k o T f o k n a B t c u d o r p e r u t c u r t S l a b o l G C M S T ) d e d u l c n o C ( r o f t n e m y a p e r p e h T . ) A E O M ( . . C O R . - 4 0 1 - , s r i a f f A c i m o n o c E f o y r t s i n i M , n o i s s i m m o C t n e m t s e v n I e h t y b d e v o r p p a s a w t c e j o r p s i h T . l a b o l G C M S T o t n i l a t i p a c f o d n a s u o h t 0 0 0 , 0 0 0 , 2 $ S U t c e j n i o t d e v o r p p a C M S T f o s r o t c e r i D f o d r a o B e h t , 8 1 0 2 t s u g u A n i , t s o c g n i g d e h e h t r e w o l o T . 8 1 0 2 , 1 3 r e b m e c e D f o s a d n a s u o h t 0 0 0 , 0 0 1 $ S U s a w t n e m t s e v n i . t n e m t s u j d a d e t a l e r r e h t o d n a s e e t s e v n i f o s e s s o l / s t i f o r p f o e r a h s , s t n e m t s e v n i s d n o b n o t n u o c s i d / m u i m e r p f o n o i t a z i t r o m a e h t s e d u l c n i e c n a l a b g n i d n e e h T : 1 : 2 e t o N e t o N 5 E L B A T y t r a p - r e t n u o C d e t a l e R f o n o i t c a s n a r T r o i r P r e h t O s m r e T f o e s o p r u P n o i t i s i u q c A e c n e r e f e R e c i r P t n u o m A e t a D r e f s n a r T i s p h s n o i t a l e R r e n w O s p i h s n o i t a l e R f o e r u t a N y t r a p - r e t n u o C m r e T t n e m y a P n o i t c a s n a r T t n u o m A n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T e t a D n o i t c a s n a r T f o s e p y T y t r e p o r P y n a p m o C e m a N L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 3 $ T N T S A E L T A F O S T S O C T A S E I T R E P O R P E T A T S E L A E R L A U D I V I D N I F O N O I T I S I U Q C A ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) d e u n i t n o C ( e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / - - - - - - - - - . o C . g n E l a c i r t c e l E h i Y r e J y b t n e m e l t t e s y l h t n o M 1 4 3 , 1 0 3 n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 2 1 h c r a M o t 7 1 0 2 , 7 1 h c r a M Y G O L O N H C E T L A V S U R T y b t n e m e l t t e s y l h t n o M 0 0 8 , 7 0 6 . D T L , . O C n o i t c u r t s n o c e h t 8 1 0 2 , 6 t s u g u A o t 7 1 0 2 , 1 2 h c r a M b a F b a F D T L , . O C N U K H E I S H y b t n e m e l t t e s y l h t n o M 2 9 5 , 3 0 3 $ n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 5 2 y r a u n a J o t 7 1 0 2 , 0 1 h c r a M b a F C M S T d n a s s e r g o r p e c n a t p e c c a . d t L , . o C n a w i a T n o i t c u r t s n o c e h t 8 1 0 2 , 0 3 t c e j o r P h c e T h g i H W + M y b t n e m e l t t e s y l h t n o M 2 7 6 , 2 8 3 h c r a M o t 7 1 0 2 , 0 1 l i r p A b a F d n a s s e r g o r p e c n a t p e c c a L L U F N E H C y b t n e m e l t t e s y l h t n o M 3 0 4 , 4 3 3 , 1 , 4 e n u J o t 7 1 0 2 , 8 1 l i r p A b a F , . O C L A N O I T A N R E T N I . D T L n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 d n a s s e r g o r p e c n a t p e c c a l a n o i t a n r e t n I n o i t a t S e u q i n U y b t n e m e l t t e s y l h t n o M 4 7 8 , 0 0 3 l i r p A o t 7 1 0 2 , 0 2 l i r p A b a F . p r o C n o i t c u r t s n o c e h t 8 1 0 2 , 9 1 . d t L , . o C y g o l o n h c e T o n a g r O y b t n e m e l t t e s y l h t n o M 1 5 9 , 1 4 8 , 1 e n u J o t 7 1 0 2 , 1 2 l i r p A b a F I I G N R E E N G N E Y E K N A Y n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 2 1 y b t n e m e l t t e s y l h t n o M 4 7 5 , 9 5 5 , 2 y l u J o t 7 1 0 2 , 5 2 l i r p A b a F . D T L d n a s s e r g o r p e c n a t p e c c a d n a s s e r g o r p e c n a t p e c c a . D T L , . O C n o i t c u r t s n o c e h t 8 1 0 2 , 1 3 , . O C S E I G O L O N H C E T n o i t c u r t s n o c e h t 8 1 0 2 , 0 1 U Y N A U H y b t n e m e l t t e s y l h t n o M 1 0 9 , 3 1 4 y a M o t 7 1 0 2 , 2 1 y a M b a F - 5 0 1 - y t r a p - r e t n u o C d e t a l e R f o n o i t c a s n a r T r o i r P r e h t O s m r e T f o e s o p r u P n o i t i s i u q c A e c n e r e f e R e c i r P t n u o m A e t a D r e f s n a r T i s p h s n o i t a l e R r e n w O s p i h s n o i t a l e R f o e r u t a N y t r a p - r e t n u o C m r e T t n e m y a P n o i t c a s n a r T t n u o m A n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T e t a D n o i t c a s n a r T f o s e p y T y t r e p o r P y n a p m o C e m a N ) d e u n i t n o C ( e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / - - - - - - - - - - - d n a s s e r g o r p e c n a t p e c c a . c n I s r o i r e t n I h c e T r a d n a M y b t n e m e l t t e s y l h t n o M 1 3 4 , 7 4 3 , 1 2 e n u J o t 7 1 0 2 , 4 2 y l u J b a F n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 D N A S T C E T I H C R A n o i t c u r t s n o c e h t 8 1 0 2 , 9 1 , S R E N T R A P D N A N A P . 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a c i C y b t n e m e l t t e s y l h t n o M 2 3 2 , 5 1 4 , 1 o t 8 1 0 2 , 3 1 y r a u r b e F b a F R E W O P M A y b t n e m e l t t e s y l h t n o M 5 4 4 , 8 7 3 $ o t 8 1 0 2 , 2 1 y r a u r b e F b a F C M S T - 8 0 1 - 0 7 7 9 0 , 7 5 0 , 6 8 $ e t o N - 4 1 3 1 1 - 4 8 1 , 5 7 3 ) 2 7 0 , 9 9 2 , 1 ( ) 1 0 4 , 4 1 4 ( ) 5 8 7 , 2 9 0 , 1 ( ) 0 8 0 , 7 5 3 ( ) 4 6 5 , 2 6 3 ( ) 3 7 4 , 3 0 5 7 , 6 0 1 $ S U ( - - - - - - - - - - - - - - - d e u s s i s i e c i o v n i n e h w f o h t n o m d e u s s i s i e c i o v n i n e h w f o h t n o m d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N e h t f o d n e e h t m o r f s y a d 0 3 t e N e h t f o d n e e h t m o r f s y a d 0 3 t e N d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N d e u s s i s i e c i o v n i n e h w f o h t n o m e t a d e c i o v n i m o r f s y a d 0 3 t e N 8 9 5 4 - 0 2 8 7 4 , 2 0 1 d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N 0 2 9 7 1 , 2 4 5 e t o N o t % l a t o T 6 E L B A T r o e l b a y a P s t n u o c c A / s e t o N e l b a v i e c e R e c n a l a B g n i d n E ) s d n a s u o h T n i s e i c n e r r u C n g i e r o F ( s m r e T t n e m y a P e c i r P t i n U s m r e T t n e m y a P o t % l a t o T t n u o m A s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i / s e s a h c r u P s e l a S s p i h s n o i t a l e R f o e r u t a N y t r a P d e t a l e R e m a N y n a p m o C n o i t c a s n a r T l a m r o n b A s l i a t e D n o i t c a s n a r T L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 1 $ T N T S A E L T A F O S E I T R A P D E T A L E R O T S E L A S R O M O R F S E S A H C R U P L A T O T ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) e t o N ( d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N 1 9 3 4 , 5 0 7 , 6 s e l a S e h t f o d n e e h t m o r f s y a d 0 3 t e N 9 1 3 0 0 , 9 8 0 , 8 1 s e s a h c r u P 5 2 4 , 8 3 7 , 7 s e s a h c r u P e t a i c o s s A y r a i d i s b u S y r a i d i s b u S g n i j n a N C M S T a n i h C C M S T C U G e t a d e c i o v n i m o r f s y a d 0 3 t e N 0 6 0 2 8 , 2 3 4 , 0 5 6 $ s e l a S y r a i d i s b u S a c i r e m A h t r o N C M S T C M S T 0 5 2 , 9 0 3 , 8 s e s a h c r u P y r a i d i s b u s t c e r i d n I h c e T r e f a W 9 4 7 , 2 4 1 , 5 s e s a h c r u P 5 4 6 , 6 6 6 , 3 s e s a h c r u P e t a i c o s s A e t a i c o s s A C M S S S I V - 9 0 1 - . a c i r e m A h t r o N C M S T y b s t n e i l c s t i o t d e t n a r g s m r e t t n e m y a p e h t y b d e n i m r e t e d r o e t a d e c i o v n i s ’ C M S T m o r f s y a d 0 3 s i r o n e t e h T : e t o N 5 5 5 , 4 6 6 , 1 ) 2 9 4 , 5 5 $ S U ( s e l a S s e l a S C M S T f o e t a i c o s s A C U G a c i r e m A h t r o N C M S T C M S T f o e t a i c o s s A c e t n i X h c e T a r E s i V 7 E L B A T r o f e c n a w o l l A s t b e D d a B d e v i e c e R s t n u o m A t n e u q e s b u S n i d o i r e P n e k a T n o i t c A t n u o m A s y a D r e v o n r u T ) 1 e t o N ( e u d r e v O - - - - - - - - - 6 1 4 , 2 8 1 $ 7 5 3 , 7 5 3 , 9 3 $ - - - - ) 0 3 5 , 1 2 1 4 8 , 1 6 6 D S U ( - ) 0 0 4 , 1 3 2 0 , 3 4 D S U ( - - - - - - - - - - - - 6 1 4 , 2 8 1 2 4 8 , 8 2 8 , 2 $ ) 0 3 5 , 1 2 1 4 8 , 1 6 6 D S U ( - ) 0 0 4 , 1 3 2 0 , 3 4 D S U ( 0 5 1 3 2 e t o N 7 2 3 5 0 1 2 e t o N 9 3 4 4 e c n a l a B g n i d n E s e i c n e r r u C n g i e r o F ( s p i h s n o i t a l e R f o e r u t a N y t r a P d e t a l e R e m a N y n a p m o C ) s d n a s u o h T n i 4 8 1 , 5 7 3 2 6 5 , 2 9 0 , 7 8 $ 2 7 0 , 9 9 2 , 1 7 4 0 , 6 8 9 , 0 3 ) 9 9 6 , 0 2 9 , 6 B M R ( ) 9 4 1 , 0 9 2 B M R ( y n a p m o c t n e r a P C M S T y n a p m o c t n e r a p e m a s e h T g n i j n a N C M S T a n i h C C M S T y r a i d i s b u S e t a i c o s s A C U G a c i r e m A h t r o N C M S T C M S T 5 8 7 , 2 9 0 , 1 ) 9 4 5 , 5 3 D S U ( e h t f o t n e r a p e t a m i t l u e h T y n a p m o C C M S T h c e T r e f a W 9 3 0 , 4 1 6 ) 6 4 1 , 7 3 1 ) 3 0 1 , 7 7 4 3 , 8 1 2 ) 3 7 4 , 3 0 5 7 , 6 0 1 8 7 4 , 2 0 1 B M R ( D S U ( D S U ( e h t f o t n e r a p e t a m i t l u e h T y n a p m o C C M S T y g o l o n h c e T C M S T C M S T f o e t a i c o s s A C U G a c i r e m A h t r o N C M S T C M S T f o e t a i c o s s A c e t n i X h c e T a r E s i V y n a p m o c t n e r a P C M S T g n i j n a N C M S T . s y a d r e v o n r u t f o n o i t a l u c l a c e h t r o f e l b a c i l p p a t o n s i h c i h w , s e l b a v i e c e r r e h t o f o d e t s i s n o c y l i r a m i r p s i e c n a l a b g n i d n e e h T : 2 . s e i t r a p d e t a l e r m o r f s e l b a v i e c e r r e h t o s e d u l c x e s y a d r e v o n r u t f o n o i t a l u c l a c e h T : 1 e t o N e t o N L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 1 $ T N T S A E L T A O T G N I T N U O M A S E I T R A P D E T A L E R M O R F S E L B A V I E C E R ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D - 0 1 1 - s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T 8 E L B A T f o e g a t n e c r e P e u n e v e R t e N d e t a d i l o s n o C s t e s s A l a t o T r o s m r e T ) 2 e t o N ( s n o i t c a s n a r T y n a p m o c r e t n I t n u o m A m e t I s t n e m e t a t S l a i c n a n i F f o e r u t a N p i h s n o i t a l e R ) 1 e t o N ( % 4 % 3 6 - - - - - - % 2 % 1 - - - - - - - % 1 % 1 - - - - - - - - - - - - - - - - - - - 3 1 0 , 5 2 2 3 9 0 , 3 6 4 5 6 4 , 5 3 0 , 1 7 9 0 , 7 5 0 , 6 8 0 0 7 , 7 2 2 , 3 3 0 0 , 9 8 0 , 8 1 7 1 0 , 6 5 1 2 7 0 , 9 9 2 , 1 6 2 4 , 8 3 7 , 7 2 2 6 , 9 3 8 , 2 1 0 4 , 4 1 4 8 3 6 , 9 9 1 0 5 0 , 8 9 2 7 4 3 , 8 1 2 5 6 7 , 4 4 0 , 2 0 5 2 , 9 0 3 , 8 5 8 7 , 2 9 0 , 1 7 4 0 , 6 8 9 , 0 3 0 2 8 , 2 3 4 , 0 5 6 $ t n e m p i u q e d n a t n a l p , y t r e p o r p f o l a s o p s i d m o r f s d e e c o r P s e i t i l i b a i l t n e r r u c r e h t o d n a e s n e p x e d e u r c c A s e i t r a p d e t a l e r o t s e l b a y a P s e s n e p x e t n e m p o l e v e d d n a h c r a e s e R s e s n e p x e t n e m p o l e v e d d n a h c r a e s e R s e i t r a p d e t a l e r o t s e l b a y a P s e i t r a p d e t a l e r m o r f s e l b a v i e c e r r e h t O s e i t r a p d e t a l e r o t s e l b a y a P s e s a h c r u P s e i t r a p d e t a l e r m o r f s e l b a v i e c e r r e h t O n o i s s i m m o c n o i s s i m m o c - - s e s n e p x e g n i t e k r a M s e s n e p x e g n i t e k r a M s d o o g f o e l a s m o r f e u n e v e r t e N s e i t r a p d e t a l e r m o r f s e l b a v i e c e R n o i s s i m m o c - s e s n e p x e g n i t e k r a M s e i t r a p d e t a l e r o t s e l b a y a P s e s a h c r u P s n a o l m r e t - t r o h S s e s a h c r u P 1 1 1 1 1 1 1 1 1 3 y t r a P r e t n u o C e m a N y n a p m o C . o N a c i r e m A h t r o N C M S T C M S T 0 e p o r u E C M S T l a b o l G C M S T a n i h C C M S T n a p a J C M S T g n i j n a N C M S T y g o l o n h c e T C M S T a d a n a C C M S T g n i j n a N C M S T h c e T r e f a W a n i h C C M S T 1 . s t n e m e e r g a l a u t u m h t i w e c n a d r o c c a n i d e n i m r e t e d e r a s m r e t d n a s e c i r p , s n o i t c a s n a r t y n a p m o c r e t n i r e h t o r o F . s e i t r a p d r i h t o t e s o h t m o r f t n e r e f f i d y l t n a c i f i n g i s t o n e r a s e l a s y n a p m o c r e t n i f o s m r e t t n e m y a p d n a s e c i r p s e l a s e h T : 2 . y r a i d i s b u s o t y n a p m o c t n e r a p m o r f s n o i t c a s n a r t . s e i r a i d i s b u s n e e w t e b s n o i t c a s n a r t e h t e h t s t n e s e r p e r 3 . o N s t n e s e r p e r 1 . o N : 1 e t o N e t o N S N O I T C A S N A R T Y N A P M O C R E T N I T N A C I F I N G I S D N A S P I H S N O I T A L E R Y N A P M O C R E T N I 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F ) s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( - 1 1 1 - s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T 9 E L B A T e t o N f o e r a h S s e s s o L / s t i f o r P e e t s e v n I f o ) 1 e t o N ( n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T 8 1 0 2 , 1 3 r e b m e c e D f o s a e c n a l a B t n u o m A t n e m t s e v n I l a n i g i r O e m o c n I t e N e h t f o ) s e s s o L ( e e t s e v n I n g i e r o F ( g n i y r r a C e u l a V n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T f o e g a t n e c r e P p i h s r e n w O n I ( s e r a h S ) s d n a s u o h T , 1 3 r e b m e c e D , 1 3 r e b m e c e D 7 1 0 2 n g i e r o F ( 8 1 0 2 n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T s t c u d o r P d n a s e s s e n i s u B n i a M n o i t a c o L y n a p m o C e e t s e v n I y n a p m o C r o t s e v n I ) A N I H C D N A L N I A M N I T N E M T S E V N I N O N O I T A M R O F N I G N I D U L C X E ( E C N E U L F N I T N A C I F I N G I S S E S I C R E X E Y N A P M O C E H T H C I H W R E V O S E E T S E V N I F O N O I T A M R O F N I D E T A L E R D N A , S N O I T A C O L , S E M A N ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T y r a i d i s b u S 8 4 9 , 7 1 1 8 4 9 , 7 1 1 3 9 3 , 9 6 2 , 4 0 0 1 0 0 0 , 1 1 8 1 7 , 3 3 3 8 1 7 , 3 3 3 d n a s t i u c r i c d e t a r g e t n i f o g n i t e k r a m d n a g n i l l e S g n i t s e t d n a g n i g a k c a p , g n i l l e s , g n i r u t c a f u n a m , g n i n g i s e d , g n i p o l e v e d , g n i h c r a e s e r n i d n a r e t l i f r o l o c f o . A S U . , a i n r o f i l a C , e s o J n a S a c i r e m A h t r o N C M S T e t a i c o s s A 7 0 2 , 0 2 5 , 1 8 6 0 , 9 1 9 , 3 5 1 8 , 2 7 7 , 5 y r a i d i s b u S 1 2 4 , 8 5 3 3 8 2 , 2 1 4 9 2 9 , 1 3 5 , 4 9 3 7 8 4 1 3 8 2 0 , 0 2 1 , 5 8 2 0 , 0 2 1 , 5 s t i u c r i c d e t a r g e t n i f o g n i l l e s d n a g n i r u t c a f u n a M e r o p a g n i S 0 2 1 , 3 5 2 1 7 1 , 5 0 0 , 5 1 7 1 , 5 0 0 , 5 s t r a p e r a p s c i n o r t c e l e g n i r u t c a f u n a m n i d e g a g n E n a w i a T , u h C - n i s H s e c i v e d r o t c u d n o c i m e s r e h t o d n a h c e T a r E s i V C M S S s t i u c r i c d e t a r g e t n i f o n g i s e d d e d i a - r e t u p m o c s k s a m f o e c i v r e s n g i s e d d n a g n i r u t c a f u n a m e h t d n a s e c i v e d r o t c u d n o c i m e s r e h t o d n a e t a i c o s s A 4 9 3 , 1 4 7 , 1 9 6 2 , 6 6 1 , 6 6 2 1 , 6 0 0 , 9 8 2 3 2 2 , 4 6 4 7 7 6 , 0 8 1 , 0 1 7 7 6 , 0 8 1 , 0 1 d n a g n i t s e t , g n i g a k c a p , g n i l l e s , g n i r u t c a f u n a M n a w i a T , u h C - n i s H S I V e h t n i s s e n i s u b d e t a l e r r e h t o d n a , e r u t c a f u n a m t n e m t s e v n i r e h t o d n a y r t s u d n i r o t c u d n o c i m e s s e i t i v i t c a y r a i d i s b u S 0 7 3 , 9 9 4 , 2 0 7 3 , 9 9 4 , 2 4 9 0 , 9 3 3 , 2 5 y r a i d i s b u S 2 0 6 , 1 7 2 , 9 $ 2 0 6 , 1 7 2 , 9 $ 1 3 9 , 7 7 5 , 3 9 3 $ 0 0 1 0 0 1 8 6 2 , 8 8 9 0 3 1 , 6 5 4 , 1 3 0 3 1 , 6 5 4 , 1 3 ) 3 e t o N ( , n g i s e d e h t n i d e v l o v n i s e i n a p m o c n i g n i t s e v n I s d n a l s I n i g r i V h s i t i r B , a l o t r o T s r e n t r a P C M S T 1 1 9 2 2 , 0 9 8 , 2 9 2 $ 9 0 3 , 2 6 1 , 5 5 3 $ s e i t i v i t c a t n e m t s e v n I s d n a l s I n i g r i V h s i t i r B , a l o t r o T l a b o l G C M S T C M S T ) d e u n i t n o C ( e t a i c o s s A ) 9 8 7 , 7 4 5 ( ) 1 5 9 , 1 5 3 , 1 ( 7 0 6 , 4 6 7 , 1 e t a i c o s s A 4 7 2 , 4 4 3 6 5 1 , 8 8 9 3 2 4 , 9 9 2 , 1 y r a i d i s b u S 7 9 6 , 1 4 y r a i d i s b u S ) 8 4 3 , 3 ( y r a i d i s b u S 5 3 0 , 4 y r a i d i s b u S ) 2 5 6 , 3 ( y r a i d i s b u S 0 7 1 , 2 y r a i d i s b u S ) 1 2 ( ) 6 1 4 , 3 ( 7 9 6 , 1 4 5 3 0 , 4 ) 6 2 7 , 3 ( 0 7 1 , 2 ) 1 2 ( 8 2 8 , 5 4 4 0 6 6 , 4 9 1 6 3 1 , 1 4 1 8 5 7 , 8 2 1 6 6 9 , 0 4 ) 6 0 1 , 0 2 ( y r a i d i s b u S 2 e t o N 6 9 1 , 3 6 8 , 1 7 6 7 , 0 4 2 , 9 2 ) 3 0 8 , 1 6 $ S U ( ) 9 2 2 , 1 5 9 $ S U ( y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N e t a i c o s s A 2 e t o N - ) 0 1 6 , 1 6 6 8 , 7 4 4 2 2 , 2 3 ) 9 6 0 , 1 ) ) 1 3 2 ( ) 1 8 7 , 6 ( ) 7 9 5 ( ) ) 0 2 ( ) ) 2 7 ( ) 6 4 8 , 1 ( 8 0 0 , 7 8 5 $ S U ( ) 6 9 0 , 9 1 $ S U ( 3 2 4 , 5 0 2 $ S U ( ) 3 8 6 , 6 $ S U ( $ S U ( - ) 7 1 0 1 5 $ S U ( 2 8 7 , 7 9 $ S U ( ) 1 8 1 , 3 $ S U ( 7 6 8 , 2 2 $ S U ( ) 4 4 7 $ S U ( 1 4 5 3 0 0 1 8 9 0 0 1 8 9 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 7 9 7 9 0 0 1 9 3 - - 6 - 1 0 8 - - 0 0 3 , 2 3 8 5 9 9 2 , 9 - 3 9 6 , 4 - ) 2 8 2 , 4 1 2 0 7 , 0 7 ) 0 0 3 , 2 7 0 6 , 4 1 ) 5 7 4 7 0 2 , 6 6 ) 4 5 1 , 2 ) 3 9 5 , 1 0 8 9 , 8 4 9 4 7 , 5 1 5 8 8 , 8 1 3 , 1 0 6 7 , 3 8 1 3 8 , 2 1 4 6 5 6 , 3 1 6 6 2 , 5 2 9 4 7 , 5 1 4 4 2 , 8 0 3 , 1 0 6 7 , 3 8 0 0 8 , 8 7 2 6 5 6 , 3 1 6 6 2 , 5 2 s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I s e i t i v i t c a g n i t r o p p u s d n a e c i v r e s r e m o t s u C s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I g n i d i v o r p d n a s t c u d o r p d e t a l e r r a l o s f o g n i l l e S s e i t i v i t c a g n i t r o p p u s d n a e c i v r e s r e m o t s u C e c i v r e s r e m o t s u c 9 9 4 , 2 4 0 , 8 1 9 9 4 , 2 4 0 , 8 1 ) 9 3 9 , 6 8 5 $ S U ( ) 9 3 9 , 6 8 5 $ S U ( e h t n i s s e n i s u b d e t a l e r g n i r u t c a f u n a m e h t n i d e v l o v n i s e i n a p m o c n i g n i t s e v n I 9 2 0 , 9 3 4 9 2 0 , 9 3 4 $ S U ( ) 2 8 2 , 4 1 $ S U ( 2 0 7 , 0 7 $ S U ( ) 0 0 3 , 2 $ S U ( s e i t i v i t c a t r o p p u s g n i r e e n i g n E y r t s u d n i r o t c u d n o c i m e s s e i t i v i t c a t r o p p u s g n i r e e n i g n E $ S U ( ) 5 7 4 $ S U ( 7 0 6 , 4 1 s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I - s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I 2 8 2 , 1 1 1 7 1 3 , 8 8 9 , 1 7 1 3 , 8 8 9 , 1 l e v e l r e f a w d n a g n i g a k c a p e z i s p i h c l e v e l r e f a W n a w i a T , n a u y o a T 8 8 6 , 6 4 8 6 5 , 6 8 3 8 6 5 , 6 8 3 g n i t s e t , g n i r u t c a f u n a m , g n i p o l e v e d , g n i h c r a e s e R n a w i a T , u h C - n i s H e c i v r e s n o i t c e n n o c r e t n i n o i t a v i s s a p t s o p s e c i v e d r o t c u d n o c i m e s r e h t o s t i u c r i c d e t a r g e t n i f o g n i t e k r a m d n a s e i t i v i t c a g n i t r o p p u s d n a e c i v r e s r e m o t s u C s d n a l r e h t e N e h t , m a d r e t s m A n a p a J , a m a h o k o Y s d n a l s I n a m y a C s d n a l s I n a m y a C a e r o K , l u o e S a d a n a C , o i r a t n O s d n a l s I n a m y a C s d n a l s I n a m y a C a d a n a C C M S T I I F D S I F D S I y n a m r e G , g r u b m a H H b m G e p o r u E r a l o S C M S T . A S U . . A S U . , e r a w a l e D y g o l o n h c e T C M S T , e r a w a l e D t n e m p o l e v e D C M S T s r e n t r a P C M S T e p o r u E C M S T n a p a J C M S T I I I F A T V a e r o K C M S T I I F A T V c e t n i X C U G - 2 1 1 - $ S U ( ) 3 9 5 , 1 $ S U ( d n a , s l a i r e t a m c i n o r t c e l e f o g n i l i a t e r d n a D I F R f o g n i t s e t d n a g n i p o l e v e d , g n i h c r a e s e r $ S U ( ) 4 5 1 , 2 $ S U ( 0 8 9 , 8 4 g n i l a s e l o h w , s t r a p c i n o r t c e l e f o g n i r u t c a f u n a M n a w i a T , i e p i a T w e N k a P - l a u t u M 7 0 2 , 6 6 s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I s d n a l s I n a m y a C d n u F h t w o r G I I I F A T V e t o N f o e r a h S s e s s o L / s t i f o r P e e t s e v n I f o ) 1 e t o N ( n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T e m o c n I t e N e h t f o ) s e s s o L ( e e t s e v n I n g i e r o F ( g n i y r r a C e u l a V n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T 8 1 0 2 , 1 3 r e b m e c e D f o s a e c n a l a B t n u o m A t n e m t s e v n I l a n i g i r O f o e g a t n e c r e P p i h s r e n w O n I ( s e r a h S ) s d n a s u o h T , 1 3 r e b m e c e D , 1 3 r e b m e c e D 7 1 0 2 n g i e r o F ( 8 1 0 2 n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T s t c u d o r P d n a s e s s e n i s u B n i a M n o i t a c o L y n a p m o C e e t s e v n I y n a p m o C r o t s e v n I ) d e d u l c n o C ( r o f t n e m y a p e r p e h T . ) A E O M ( . . C O R . , s r i a f f A c i m o n o c E f o y r t s i n i M , n o i s s i m m o C t n e m t s e v n I e h t y b d e v o r p p a s a w t c e j o r p s i h T . l a b o l G C M S T o t n i l a t i p a c f o d n a s u o h t 0 0 0 , 0 0 0 , 2 $ S U t c e j n i o t d e v o r p p a C M S T f o s r o t c e r i D f o d r a o B e h t , 8 1 0 2 t s u g u A n i , t s o c g n i g d e h e h t r e w o l o T . 8 1 0 2 , 1 3 r e b m e c e D f o s a d n a s u o h t 0 0 0 , 0 0 1 $ S U s a w t n e m t s e v n i . y n a p m o c r o t s e v n i e h t f o s e s s o l / s t i f o r p f o e r a h s e h t n i d e d u l c n i y d a e r l a s i t n u o m a h c u s s a n i e r e h d e t c e l f e r t o n s i y n a p m o c e e t s e v n i e h t f o s e s s o l / s t i f o r p f o e r a h s e h T . s n o i t c a s n a r t y n a p m o c r e t n i n o s e s s o l / s t i f o r p s s o r g d e z i l a e r n u f o t c e f f e e h t s e d u l c n i e e t s e v n i f o s e s s o l / s t i f o r p f o e r a h s e h T : 1 : 2 : 3 e t o N e t o N e t o N - 3 1 1 - y r a i d i s b u S 2 e t o N 5 5 5 , 3 7 4 , 1 $ 3 6 2 , 5 9 5 , 4 $ ) 8 1 9 , 8 4 $ S U ( ) 8 8 4 , 9 4 1 $ S U ( 0 0 1 7 3 6 , 3 9 2 - $ - $ d e t a r g e t n i f o g n i t s e t d n a g n i l l e s , g n i r u t c a f u n a M s e c i v e d r o t c u d n o c i m e s r e h t o d n a s t i u c r i c . A S U . , n o t g n i h s a W h c e T r e f a W t n e m p o l e v e D C M S T 0 1 E L B A T d e t a l u m u c c A d r a w n I f o e c n a t t i m e R f o s a s g n i n r a E , 1 3 r e b m e c e D 8 1 0 2 g n i y r r a C t n u o m A f o s a , 1 3 r e b m e c e D 8 1 0 2 s e s s o L / s t i f o r P i p h s r e n w O e e t s e v n I y n a p m o C f o e r a h S f o e g a t n e c r e P e h t f o ) s e s s o L ( e m o c n I t e N d e t a l u m u c c A f o w o l f t u O m o r f t n e m t s e v n I f o s a n a w i a T , 1 3 r e b m e c e D n i $ S U ( 8 1 0 2 ) s d n a s u o h T s w o l F t n e m t s e v n I w o l f n I w o l f t u O n i $ S U ( ) s d n a s u o h T d e t a l u m u c c A f o w o l f t u O m o r f t n e m t s e v n I f o s a n a w i a T 8 1 0 2 , 1 y r a u n a J n i $ S U ( ) s d n a s u o h T f o d o h t e M t n e m t s e v n I f o t n u o m A l a t o T l a t i p a C n i - d i a P n i B M R ( ) s d n a s u o h T d n a s e s s e n i s u B n i a M s t c u d o r P y n a p m o C e e t s e v n I - - $ 1 1 9 , 6 6 4 , 5 5 $ 8 7 5 , 4 6 3 , 5 $ % 0 0 1 2 6 4 , 7 9 3 , 5 $ 7 6 6 , 9 3 9 , 8 1 $ - $ - ) 2 e t o N ( ) 0 0 0 , 6 9 5 $ S U ( $ 7 6 6 , 9 3 9 , 8 1 $ ) 0 0 0 , 6 9 5 $ S U ( 1 e t o N 7 6 6 , 9 3 9 , 8 1 $ ) 0 8 0 , 2 0 5 , 4 B M R ( n g i s e d d e d i a - r e t u p m o c s t i u c r i c d e t a r g e t n i f o d n a g n i t s e t r e h t o d n a s e c i v e d r o t c u d n o c i m e s , g n i l l e s , g n i r u t c a f u n a M a n i h C C M S T 3 1 4 , 1 0 6 , 0 2 ) 2 e t o N ( ) 7 2 9 , 0 0 2 , 8 ( % 0 0 1 ) 9 8 9 , 5 1 2 , 8 ( ) 0 0 0 , 0 0 0 , 1 $ S U ( 2 1 4 , 1 2 5 , 0 3 - ) 0 0 0 , 0 8 $ S U ( ) 0 0 0 , 0 2 9 $ S U ( ) 9 1 1 , 0 5 6 , 6 B M R ( d n a g n i t s e t 0 2 3 , 1 6 3 , 2 2 9 0 , 0 6 1 , 8 2 1 e t o N 2 1 4 , 1 2 5 , 0 3 , g n i l l e s , g n i r u t c a f u n a M g n i j n a N C M S T y b d e z i r o h t u A s t n u o m A t n e m t s e v n I a n i h C d n a l n i a M n i t n e m t s e v n I d e t a l u m u c c A n g i s e d d e d i a - r e t u p m o c s t i u c r i c d e t a r g e t n i f o r e h t o d n a s e c i v e d r o t c u d n o c i m e s ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( A N I H C D N A L N I A M N I T N E M T S E V N I N O N O I T A M R O F N I 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y R O F s e i r a i d i s b u S d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T t n e m t s e v n I n o t i i m L r e p p U A E O M , n o i s s i m m o C t n e m t s e v n I 3 e t o N ) s d n a s u o h T n i $ S U ( 7 6 6 , 2 1 4 , 9 1 1 $ ) 0 0 0 , 6 9 5 , 3 $ S U ( 8 1 0 2 , r e b m e c e D f o s a ) s d n a s u o h T n i $ S U ( 9 7 0 , 1 6 4 , 9 4 $ ) 0 0 0 , 6 9 5 , 1 $ S U ( f o e l p i c n i r P “ o t t n a u s r u p a n i h C d n a l n i a m n i t n e m t s e v n i n o t i m i l r e p p u e h t , 6 1 0 2 t s u g u A n o A E O M , u a e r u B t n e m p o l e v e D l a i r t s u d n I y b d e u s s i s r e t r a u q d a e h g n i t a r e p o r o f d e i f i l a u q g n i e b f o e t a c i f i t r e c e h t d e n i a t b o s a h y n a p m o C e h t s A : 3 . e l b a c i l p p a t o n s i ” a n i h C d n a l n i a M n i n o i t a r e p o o C l a c i n h c e T r o t n e m t s e v n i . g n i j n a N C M S T n i s d n a s u o h t 0 0 0 , 0 0 0 , 1 $ S U d n a a n i h C C M S T n i d n a s u o h t 0 0 0 , 6 9 5 $ S U d e t s e v n i y l t c e r i d C M S T : 1 . s t n e m e t a t s l a i c n a n i f d e t i d u a e h t n o d e s a b d e z i n g o c e r s a w t n u o m A : 2 e t o N e t o N e t o N - 4 1 1 - Taiwan Semiconductor Manufacturing Company Limited Parent Company Only Financial Statements for the Years Ended December 31, 2018 and 2017 and Independent Auditors’ Report - 115 - - 116 - - 117 - Our key audit procedures performed in respect of the above area included the following: 1. Understood and tested the design and operating effectiveness of the key controls over estimate for sales returns and allowances; 2. Understood and assessed the reasonableness of assumptions made and methodology used in estimating sales returns and allowances; 3. Sampled and inspected the sales contracts of main products by agreeing the contractual terms and performed an analysis to challenge the estimation on possibility that specific products could meet business incentives condition to verify the reasonableness of the accrual of the sales returns and allowances; 4. Performed a retrospective review to comparatively analyze the historical accuracy of judgments with reference to actual sales returns and allowance paid. Timing to commence depreciation of property, plant and equipment (PP&E) The Company continues to invest in capital expenditures to develop and build capacity in leading-edge technologies to meet customers’ demand. Please refer to Notes 4, 5 and 12 to the parent company only financial statements for the details of the information and accounting policy about the depreciation of PP&E. According to IAS 16, depreciation of PP&E begins when the assets are available for use, and in the condition necessary for the assets to be capable of operating in the intended manner. Due to the significant capital expenditures of the Company, and the criteria to determine whether such assets are available for their intended use vary within categories of assets as well as involve subjective judgments, the validity of the timing to commence depreciation of PP&E could have a material impact on its financial performance. Consequently, the validity of the timing to commence depreciation of PP&E is identified as a key audit matter. Our key audit procedures performed in respect of the above area included the following: 1. Understood and tested the design and operating effectiveness of the key controls over the timing to commence depreciation of PP&E; 2. Understood the criteria the assets are defined as available for their intended use and the corresponding accounting treatments; 3. Sampled and reviewed the appropriateness of the timing for commencing depreciation after the assets met the criteria of available for use in current year; 4. Performed an observation on the physical count of equipment under installation and construction in progress; sampled and inspected the supporting documentation to verify that the status of equipment under installation and construction in progress are not available for use; 5. Sampled equipment under installation and construction in progress which met the criteria of available for use and were transferred in the subsequent period to evaluate the reasonableness of the timing for commencing depreciation; 6. Sampled and reviewed the appropriateness of the equipment under installation and construction in progress which are not available for their intended use. - 118 - Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error. In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process. Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements. As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern. 5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - 119 - - 120 - Taiwan Semiconductor Manufacturing Company Limited PARENT COMPANY ONLY BALANCE SHEETS (In Thousands of New Taiwan Dollars) ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (Note 7) Financial assets at fair value through other comprehensive income Available-for-sale financial assets Financial assets at amortized cost Hedging derivative financial assets (Note 8) Hedging financial assets (Note 8) Notes and accounts receivable, net (Note 9) Receivables from related parties (Note 32) Other receivables from related parties (Note 32) Inventories (Notes 5, 10 and 35) Other financial assets (Notes 33 and 35) Other current assets (Note 14) Total current assets NONCURRENT ASSETS Financial assets at fair value through other comprehensive income Financial assets carried at cost Investments accounted for using equity method (Notes 5 and 11) Property, plant and equipment (Notes 5 and 12) Intangible assets (Notes 5 and 13) Deferred income tax assets (Notes 5 and 26) Refundable deposits and others Total noncurrent assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term loans (Notes 15 and 29) Financial liabilities at fair value through profit or loss (Note 7) Hedging derivative financial liabilities (Note 8) Hedging financial liabilities (Note 8) Accounts payable Payables to related parties (Note 32) Salary and bonus payable Accrued profit sharing bonus to employees and compensation to directors (Notes 20 and 28) Payables to contractors and equipment suppliers Income tax payable (Notes 5 and 26) Provisions (Notes 5 and 16) Long-term liabilities - current portion (Note 17) Accrued expenses and other current liabilities (Notes 5, 19, 21, 29 and 32) Total current liabilities NONCURRENT LIABILITIES Bonds payable (Notes 17 and 29) Deferred income tax liabilities (Notes 5 and 26) Net defined benefit liability (Notes 5 and 18) Guarantee deposits (Notes 19 and 29) Others Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT Capital stock (Note 20) Capital surplus (Note 20) Retained earnings (Note 20) Appropriated as legal capital reserve Appropriated as special capital reserve Unappropriated earnings Others (Note 20) Total equity TOTAL The accompanying notes are an integral part of the parent company only financial statements. - 121 - December 31, 2018 Amount % December 31, 2017 Amount % $ 240,202,525 54,115 568,150 - 2,294,098 - 23,497 36,685,389 86,452,584 1,234,662 98,088,160 178,008 4,184,918 12 - - - - - - 2 4 - 5 - - $ 239,176,841 373,351 - 2,393,555 - 7,378 - 26,655,427 92,141,837 3,143,872 70,297,445 94,839 2,484,792 12 - - - - - - 2 5 - 4 - - 469,966,106 23 436,769,337 23 963,610 - 549,560,884 1,025,286,941 12,429,930 15,586,674 1,666,863 - - 26 49 1 1 - - 415,051 463,986,364 1,016,355,970 9,870,127 10,829,473 1,163,069 - - 24 52 - 1 - 1,605,494,902 77 1,502,620,054 77 $ 2,075,461,008 100 $ 1,939,389,391 100 $ 91,982,340 30,232 - 1,941 30,472,292 4,546,752 12,442,707 23,919,312 41,279,910 38,706,990 - 34,900,000 49,778,042 $ 4 - - - 2 - 1 1 2 2 - 2 2 63,766,850 18,764 15,562 - 25,605,223 4,829,664 12,283,321 23,388,002 50,363,976 32,950,667 13,174,825 24,300,000 57,686,386 3 - - - 1 - 1 1 3 2 1 1 3 328,060,518 16 308,383,240 16 56,900,000 233,284 9,651,405 3,346,648 451,488 70,582,825 3 - 1 - - 4 91,800,000 302,205 8,850,704 7,582,479 413,230 108,948,618 5 - 1 - - 6 398,643,343 20 417,331,858 22 259,303,805 56,315,932 12 3 259,303,805 56,309,536 13 3 276,033,811 26,907,527 1,073,706,503 1,376,647,841 13 1 52 66 241,722,663 - 991,639,347 1,233,362,010 (15,449,913) (1) (26,917,818) 12 - 51 63 (1) 1,676,817,665 80 1,522,057,533 78 $ 2,075,461,008 100 $ 1,939,389,391 100 Taiwan Semiconductor Manufacturing Company Limited PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) 2018 2017 Amount % Amount % NET REVENUE (Notes 5, 21 and 32) $1,023,925,713 100 $ 969,136,109 100 COST OF REVENUE (Notes 5, 10, 28, 32 and 35) 530,861,166 52 490,196,856 51 GROSS PROFIT BEFORE UNREALIZED GROSS PROFIT ON SALES TO SUBSIDIARIES AND ASSOCIATES UNREALIZED GROSS PROFIT ON SALES TO SUBSIDIARIES AND ASSOCIATES 493,064,547 48 478,939,253 49 (109,046) - (1,562) - GROSS PROFIT 492,955,501 48 478,937,691 49 OPERATING EXPENSES (Notes 5, 28, and 32) Research and development General and administrative Marketing 84,944,461 19,113,298 3,201,670 8 2 - 79,887,723 20,049,405 3,048,781 8 2 1 Total operating expenses 107,259,429 10 102,985,909 11 OTHER OPERATING INCOME AND EXPENSES, NET (Notes 12, 22 and 28) (1,668,234) - (1,261,665) - INCOME FROM OPERATIONS 384,027,838 38 374,690,117 38 NON-OPERATING INCOME AND EXPENSES Share of profits of subsidiaries and associates (Note 11) Other income (Note 23) Foreign exchange gain, net (Note 37) Finance costs (Note 24) Other gains and losses (Note 25) 12,509,959 2,005,107 1,927,029 (2,903,454) (1,368,326) Total non-operating income and expenses 12,170,315 1 - - - - 1 18,757,236 1,696,595 (670,371) (2,749,640) 1,592,239 18,626,059 2 - - - - 2 INCOME BEFORE INCOME TAX 396,198,153 39 393,316,176 40 INCOME TAX EXPENSE (Notes 5 and 26) 45,067,269 5 50,204,700 5 NET INCOME 351,130,884 34 343,111,476 35 (Continued) - 122 - Taiwan Semiconductor Manufacturing Company Limited PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) 2018 2017 Amount % Amount % $ (861,162) - $ (254,681) - OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 11, 18, 20 and 26) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation Unrealized loss on investments in equity instruments at fair value through other comprehensive income Gain on hedging instruments Share of other comprehensive loss of subsidiaries and associates Income tax benefit related to items that will not be reclassified subsequently (1,189,957) 40,975 (2,135,880) 195,729 (3,950,295) Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations 14,578,483 Changes in fair value of available-for-sale financial assets Cash flow hedges Share of other comprehensive income (loss) of subsidiaries and associates Income tax expense related to items that may be reclassified subsequently Other comprehensive income (loss) for the year, net of income tax - - (794,057) - 13,784,426 9,834,131 - - - - - 1 - - - - 1 1 - - (20,853) 30,562 (244,972) - - - - - (28,270,770) (3) (425,692) 4,683 123,804 - - - (3,536) (28,571,511) - (3) (28,816,483) (3) TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 360,965,015 35 $ 314,294,993 32 EARNINGS PER SHARE (NT$, Note 27) Basic earnings per share Diluted earnings per share $ $ 13.54 13.54 $ $ 13.23 13.23 The accompanying notes are an integral part of the parent company only financial statements. (Concluded) - 123 - l a t o T y t i u q E l a t o T 1 6 2 , 8 4 2 , 9 8 3 , 1 $ 3 8 9 , 3 6 6 , 1 $ - ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( 6 7 4 , 1 1 1 , 3 4 3 - - - - ) 3 8 4 , 6 1 8 , 8 2 ( ) 1 1 5 , 1 7 5 , 8 2 ( 3 9 9 , 4 9 2 , 4 1 3 ) 1 1 5 , 1 7 5 , 8 2 ( - - - - - - - $ ) 5 0 2 , 3 ( 4 9 9 , 0 1 3 5 1 , 9 1 - - - - ) 0 9 2 , 0 1 ( ) 0 9 2 , 0 1 ( 0 8 4 , 5 4 2 , 1 ) 1 4 8 , 0 1 3 ( - 3 1 0 , 3 0 3 , 3 2 5 , 1 ) 9 5 6 , 8 2 2 , 7 2 ( ) 0 9 2 , 0 1 ( 3 3 5 , 7 5 0 , 2 2 5 , 1 $ ) 8 1 8 , 7 1 9 , 6 2 ( $ ) 0 9 2 , 0 1 ( $ - - ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( 4 8 8 , 0 3 1 , 1 5 3 - - - - - 1 3 1 , 4 3 8 , 9 5 0 4 , 9 9 5 , 0 1 5 1 0 , 5 6 9 , 0 6 3 5 0 4 , 9 9 5 , 0 1 ) 2 6 1 , 2 2 ( ) 2 6 1 , 2 2 ( - 6 5 0 , 3 9 1 , 1 - - - - - - - - - 7 2 0 , 2 1 8 6 , 2 5 3 1 , 0 1 - - - - 7 4 4 , 8 7 4 4 , 8 - - - - - - - - - - - - - - - - 6 2 2 , 4 6 2 2 , 4 7 3 5 , 1 4 7 3 5 , 1 4 - ) 2 6 1 , 2 2 ( - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 5 1 9 , 4 2 5 ( ) 5 1 9 , 4 2 5 ( ) 5 6 4 , 7 9 0 , 4 ( ) 5 6 4 , 7 9 0 , 4 ( 6 5 0 , 3 9 1 , 1 - - - - - - - - - - - - - - - - - - 5 6 6 , 7 1 8 , 6 7 6 , 1 $ ) 3 1 9 , 9 4 4 , 5 1 ( $ ) 3 4 8 , 1 ( $ 1 0 6 , 3 2 $ $ ) 4 2 3 , 9 2 4 , 3 ( $ $ 5 0 1 $ - - - - - - - 1 2 1 , 4 1 2 1 , 4 $ 6 2 2 , 4 $ ) 6 2 2 , 4 ( $ 1 4 6 , 2 $ 7 3 2 , 1 6 6 , 1 $ 9 6 1 , 8 0 0 , 2 7 0 , 1 $ 4 2 2 , 0 1 7 , 3 6 8 $ - - - - - - - - - ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 8 1 7 , 4 2 4 , 3 3 ( ) 3 6 6 , 2 1 5 , 1 8 1 ( ) 1 8 3 , 7 3 9 , 4 1 2 ( 6 7 4 , 1 1 1 , 3 4 3 6 7 4 , 1 1 1 , 3 4 3 ) 5 1 7 , 6 1 2 ( ) 7 1 9 , 8 5 3 , 8 2 ( ) 2 7 9 , 4 4 2 ( ) 2 7 9 , 4 4 2 ( ) 5 1 7 , 6 1 2 ( ) 7 1 9 , 8 5 3 , 8 2 ( 4 0 5 , 6 6 8 , 2 4 3 4 0 5 , 6 6 8 , 2 4 3 - - - - - - - - - - - - $ ) 4 7 0 , 4 1 2 ( $ ) 0 8 6 , 7 9 6 , 6 2 ( $ 0 1 0 , 2 6 3 , 3 3 2 , 1 $ 7 4 3 , 9 3 6 , 1 9 9 $ 4 7 0 , 4 1 2 - 1 2 3 , 6 5 5 , 1 1 2 3 , 6 5 5 , 1 ) 0 8 6 , 7 9 6 , 6 2 ( 1 3 3 , 8 1 9 , 4 3 2 , 1 8 6 6 , 5 9 1 , 3 9 9 - - - - - - - ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 8 4 1 , 1 1 3 , 4 3 ( ) 7 2 5 , 7 0 9 , 6 2 ( ) 4 4 0 , 3 4 4 , 7 0 2 ( ) 9 1 7 , 1 6 6 , 8 6 2 ( 4 8 8 , 0 3 1 , 1 5 3 4 8 8 , 0 3 1 , 1 5 3 3 3 3 , 5 5 6 , 4 1 ) 4 7 2 , 5 6 7 ( ) 4 7 2 , 5 6 7 ( 3 3 3 , 5 5 6 , 4 1 0 1 6 , 5 6 3 , 0 5 3 0 1 6 , 5 6 3 , 0 5 3 - - - - - - - - - - - - - ) 6 5 0 , 3 9 1 , 1 ( ) 6 5 0 , 3 9 1 , 1 ( - - - - - - - - - - - - - - $ 5 4 9 , 7 9 2 , 8 0 2 $ 4 0 3 , 2 7 2 , 6 5 $ 5 0 8 , 3 0 3 , 9 5 2 $ 0 8 3 , 0 3 9 , 5 2 7 1 0 2 , 1 Y R A U N A J , E C N A L A B - - - - - - 8 1 7 , 4 2 4 , 3 3 - 8 1 7 , 4 2 4 , 3 3 - - - - - - 5 8 0 , 7 4 9 9 , 0 1 3 5 1 , 9 1 - - - - - - - - - - - - - - - - - - e r a h s r e p 7 $ T N - s r e d l o h e r a h s o t s d n e d i v i d h s a C s g n i n r a e s ’ r a e y r o i r p f o s n o i t a i r p o r p p A e v r e s e r l a t i p a c l a g e L 7 1 0 2 n i e m o c n i t e N l a t o T f o t e n , 7 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c r e h t O x a t e m o c n i f o s e i t i u q e n i s e g n a h c f o e r a h s o t s t n e m t s u j d A s e t a i c o s s a 7 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c l a t o T s e i r a i d i s b u s f o s e i t i u q e n i s e g n a h c f o e r a h s m o r F s r e d l o h e r a h s m o r f n o i t a n o D $ 3 6 6 , 2 2 7 , 1 4 2 $ 6 3 5 , 9 0 3 , 6 5 $ 5 0 8 , 3 0 3 , 9 5 2 $ 0 8 3 , 0 3 9 , 5 2 7 1 0 2 , 1 3 R E B M E C E D , E C N A L A B - - - - n o i t a c i l p p a e v i t c e p s o r t e r f o t c e f f E 3 6 6 , 2 2 7 , 1 4 2 6 3 5 , 9 0 3 , 6 5 5 0 8 , 3 0 3 , 9 5 2 0 8 3 , 0 3 9 , 5 2 8 1 0 2 , 1 Y R A U N A J , E C N A L A B D E T S U J D A - - - - - - - - - - - - - - - - - 7 2 5 , 7 0 9 , 6 2 - - 7 2 5 , 7 0 9 , 6 2 8 4 1 , 1 1 3 , 4 3 8 4 1 , 1 1 3 , 4 3 - - - - - - - - - ) 0 2 4 , 6 ( 1 8 6 , 2 5 3 1 , 0 1 - - - - - - - - - - - - - - - - - - - - - - - - e r a h s r e p 8 $ T N - s r e d l o h e r a h s o t s d n e d i v i d h s a C s g n i n r a e s ’ r a e y r o i r p f o s n o i t a i r p o r p p A e v r e s e r l a t i p a c l a i c e p S e v r e s e r l a t i p a c l a g e L 8 1 0 2 n i e m o c n i t e N l a t o T f o t e n , 8 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c r e h t O x a t e m o c n i 8 1 0 2 n i ) s s o l ( e m o c n i e v i s n e h e r p m o c l a t o T r i a f t a s t n e m u r t s n i y t i u q e n i s t n e m t s e v n i f o l a s o p s i D e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v s t n e m u r t s n i g n i g d e h n o s s o l r o f t n e m t s u j d a s i s a B f o s e i t i u q e n i s e g n a h c f o e r a h s o t s t n e m t s u j d A s e t a i c o s s a s e i r a i d i s b u s f o s e i t i u q e n i s e g n a h c f o e r a h s m o r F s r e d l o h e r a h s m o r f n o i t a n o D s r e h t O d e n r a e n U d e s a B - k c o t S e e y o l p m E n o i t a s n e p m o C n o ) s s o L ( n i a G g n i g d e H s t n e m u r t s n I w o l F h s a C e v r e s e R s e g d e H n i a G d e z i l a e r n U s t e s s A n o ) s s o L ( e u l a V r i a F t a r e h t O h g u o r h T e v i s n e h e r p m o C d e z i l a e r n U s s o L / n i a G - e l b a l i a v A m o r f e l a s - r o f e m o c n I s t e s s A l a i c n a n i F n g i e r o F y c n e r r u C n o i t a l s n a r T e v r e s e R l a t o T g n i n r a E e v r e s e R e v r e s e R s u l p r u S l a t i p a C t n u o m A ) s d n a s u o h T n I ( d e t a i r p o r p p a n U l a t i p a C l a i c e p S l a t i p a C l a g e L s e r a h S s g n i n r a E d e n i a t e R k c o t S n o m m o C - k c o t S l a t i p a C Y T I U Q E N I S E G N A H C F O S T N E M E T A T S Y L N O Y N A P M O C T N E R A P ) e r a h S r e P s d n e d i v i D t p e c x E , s r a l l o D n a w i a T w e N f o s d n a s u o h T n I ( d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T - 4 2 1 - $ ) 7 4 3 , 2 4 0 , 2 1 ( $ 1 4 8 , 7 4 6 , 6 7 3 , 1 $ 3 0 5 , 6 0 7 , 3 7 0 , 1 $ 7 2 5 , 7 0 9 , 6 2 $ 1 1 8 , 3 3 0 , 6 7 2 $ 2 3 9 , 5 1 3 , 6 5 $ 5 0 8 , 3 0 3 , 9 5 2 $ 0 8 3 , 0 3 9 , 5 2 8 1 0 2 , 1 3 R E B M E C E D , E C N A L A B . s t n e m e t a t s l a i c n a n i f y l n o y n a p m o c t n e r a p e h t f o t r a p l a r g e t n i n a e r a s e t o n g n i y n a p m o c c a e h T Taiwan Semiconductor Manufacturing Company Limited PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: 2018 2017 $ 396,198,153 $ 393,316,176 Depreciation expense Amortization expense Finance costs Share of profits of subsidiaries and associates Interest income Loss on disposal or retirement of property, plant and equipment, net Gain on disposal of intangible assets, net Impairment loss on property, plant and equipment Impairment loss on financial assets Gain on financial instruments at fair value through profit or loss, net Gain on disposal of available-for-sale financial assets, net Unrealized gross profit on sales to subsidiaries and associates Loss (gain) on foreign exchange, net Dividend income 274,340,540 4,352,847 2,903,454 (12,509,959) (1,847,202) 557,598 250,597,135 4,325,028 2,749,640 (18,757,236) (1,554,792) 1,008,989 (3,198) - 6,137 - (115,690) 1,562 (9,118,776) (141,803) (5,933) 423,468 - (17,729) - 109,046 2,732,445 (157,905) Changes in operating assets and liabilities: Financial instruments at fair value through profit or loss Notes and accounts receivable, net Receivables from related parties Other receivables from related parties Inventories Other financial assets Other current assets Accounts payable Payables to related parties Salary and bonus payable Accrued profit sharing bonus to employees and compensation to directors Accrued expenses and other current liabilities Provisions Net defined benefit liability Cash generated from operations Income taxes paid 301,714 (15,821,089) 5,689,253 216,794 (27,790,715) (26,762) (1,685,193) 4,839,526 (282,912) 159,386 (196,337) 7,253,120 (5,296,267) (733,023) (23,793,099) 2,029,903 510,739 1,275,185 (10,337) 712,816 531,310 (21,092,059) - (60,461) 593,231 29,615,847 (3,823,540) 44,615 630,496,025 (61,695,694) 612,057,615 (43,956,272) Net cash generated by operating activities 568,101,343 568,800,331 (Continued) - 125 - Taiwan Semiconductor Manufacturing Company Limited PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) 2018 2017 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of: Held to maturity financial assets Financial assets at amortized cost Property, plant and equipment Intangible assets Proceeds from disposal or redemption of: - $ $ (2,294,098) (1,695,771) - (298,099,157) (311,763,999) (4,351,050) (6,885,163) Financial assets at fair value through other comprehensive income Available-for-sale financial assets Held-to-maturity financial assets Property, plant and equipment Intangible assets Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income Proceeds from return of capital of financial assets carried at cost Derecognition of hedging derivative financial instruments Derecognition of hedging financial instruments Interest received Other dividends received Dividends received from investments accounted for using equity method Refundable deposits paid Refundable deposits refunded 651,971 - - 4,707,118 15,881 3,456 - - 57,954 1,815,330 157,905 - 140,395 13,160,000 13,226,816 27,409 - 14,080 38,097 - 1,552,725 141,803 3,769,150 (2,218,292) 1,762,043 5,005,132 (1,227,010) 416,600 Net cash used in investing activities (296,555,902) (285,314,773) CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Repayment of bonds Interest paid Guarantee deposits received Guarantee deposits refunded Cash dividends Payment of partial acquisition of interests in subsidiaries Proceeds from partial disposal of interests in subsidiaries Donation from shareholders 27,154,770 (24,300,000) (2,957,663) 1,625,526 (120,717) 10,394,485 (38,100,000) (2,916,969) 205,075 (89,507) (207,443,044) (181,512,663) (82,433,287) 257,648 7,938 (64,633,400) 144,676 10,095 Net cash used in financing activities (270,519,757) (294,187,280) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,025,684 (10,701,722) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 239,176,841 249,878,563 CASH AND CASH EQUIVALENTS, END OF YEAR $ 240,202,525 $ 239,176,841 The accompanying notes are an integral part of the parent company only financial statements. (Concluded) - 126 - Taiwan Semiconductor Manufacturing Company Limited NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise) 1. GENERAL Taiwan Semiconductor Manufacturing Company Limited (the “Company” or “TSMC”), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. The Company is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. On September 5, 1994, the Company’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, the Company listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs). The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. 2. THE AUTHORIZATION OF FINANCIAL STATEMENTS The accompanying parent company only financial statements were approved and authorized for issue by the Board of Directors on February 19, 2019. 3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on the Company’s accounting policies: 1) IFRS 9 “Financial Instruments” and related amendment IFRS 9 supersedes IAS 39 “Financial Instruments: Recognition and Measurement”, with consequential amendments to IFRS 7 “Financial Instruments: Disclosures” and other standards. IFRS 9 sets out the requirements for classification, measurement and impairment of financial assets and hedge accounting. Please refer to Note 4 for information relating to the relevant accounting policies. - 127 - Classification, measurement and impairment of financial assets and financial liabilities The Company elects not to restate prior reporting period when applying the requirements for the classification, measurement and impairment of financial assets and financial liabilities under IFRS 9 with the cumulative effect of the initial application recognized at the date of initial application. The impact on measurement categories, carrying amount and related reconciliation for each class of the Company’s financial assets and financial liabilities when retrospectively applying IFRS 9 on January 1, 2018 is detailed below: Financial Assets IAS 39 IFRS 9 IAS 39 IFRS 9 Note Measurement Category Carrying Amount Cash and cash equivalents Derivatives Loans and receivables Held for trading Amortized cost Mandatorily at fair value through profit or loss (FVTPL) Hedging instruments Fair value through other comprehensive income (FVTOCI) Amortized cost $ 239,176,841 $ 239,176,841 373,351 373,351 (1) 7,378 2,808,606 7,378 3,377,145 (2) 123,199,044 123,443,817 (1) Hedging instruments Available-for sale (cid:486) Loans and receivables trading Held for Hedging instruments (cid:3) Amortized cost Held for trading Hedging instruments Amortized cost 18,764 15,562 294,856,247 294,856,247 18,764 15,562 Equity securities Notes and accounts receivable (including related parties), other receivables and refundable deposits Financial Liabilities Derivatives Short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable and guarantee deposits Carrying Amount as of December 31, 2017 (IAS 39) Reclassifi- cations Remea- surements Carrying Amount as of January 1, 2018 (IFRS 9) Retained Earnings Effect on January 1, 2018 Other Equity Effect on January 1, 2018 Note $ 373,351 - $ $ - - $ - - 373,351 - $ $ - - - - - - - 2,808,606 2,808,606 - 568,539 568,539 - 3,377,145 3,377,145 - - - 7,378 362,375,885 362,375,885 - 244,773 244,773 - 362,620,658 362,620,658 7,378 534,270 534,270 - 244,773 244,773 - (2) (1) 34,269 34,269 - - - - Financial Assets FVTPL FVTOCI - Equity instruments Add: From available for sale Amortized cost Add: From loans and receivables Hedging instruments Total $ 380,729 $ 365,184,491 $ 813,312 $ 366,378,532 $ 779,043 $ 34,269 Carrying Amount as of December 31, 2017 (IAS 39) Adjustments Arising from Initial Application Carrying Amount as of January 1, 2018 (IFRS 9) Retained Earnings Effect on January 1, 2018 Other Equity Effect on January 1, 2018 Note Investments accounted for using equity method $ 463,986,364 $ 400,138 $ 464,386,508 $ 745,248 $ (345,110 ) (3) - 128 - (1) Cash and cash equivalents, notes and accounts receivable (including related parties), other receivables and refundable deposits that were classified as loans and receivables under IAS 39 are now classified at amortized cost with assessment of future 12-month or lifetime expected credit loss under IFRS 9. As a result of retrospective application, the adjustments would result in a decrease in loss of allowance for accounts receivable of NT$244,773 thousand and an increase in retained earnings of NT$244,773 thousand on January 1, 2018. (2) As equity investments that were previously classified as available-for-sale financial assets under IAS 39 are not held for trading, the Company elected to designate all of these investments as at FVTOCI under IFRS 9. As a result, the related other equity-unrealized gain or loss on available-for-sale financial assets of NT$206,015 thousand is reclassified to increase other equity - unrealized gain or loss on financial assets at FVTOCI. As equity investments previously measured at cost under IAS 39 are remeasured at fair value under IFRS 9, the adjustments would result in an increase in financial assets at FVTOCI of NT$568,539 thousand and an increase in other equity-unrealized gain or loss on financial assets at FVTOCI of NT$568,539 thousand on January 1, 2018. For those equity investments previously classified as available-for-sale financial assets (including measured at cost financial assets) under IAS 39, the impairment losses that the Company had recognized have been accumulated in retained earnings. Since these investments were designated as at FVTOCI under IFRS 9 and no impairment assessment is required, the adjustments would result in a decrease in other equity - unrealized gain or loss on financial assets at FVTOCI of NT$534,270 thousand and an increase in retained earnings of NT$534,270 thousand on January 1, 2018. (3) With the retrospective adoption of IFRS 9 by associates accounted for using equity method, the corresponding adjustments made by the Company would result in an increase in investments accounted for using equity method of NT$400,138 thousand, a decrease in other equity- unrealized gain or loss on financial assets at FVTOCI of NT$765,199 thousand, an increase in other equity- unrealized gain or loss on available-for-sale financial assets of NT$420,089 thousand and an increase in retained earnings of NT$745,248 thousand on January 1, 2018. Hedge accounting The Company prospectively applies the requirements for hedge accounting upon initial application of IFRS 9. In addition, due to the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, all derivative and non-derivative financial assets and financial liabilities which are designated as hedging instruments are presented as financial assets and financial liabilities for hedging starting 2018. 2) IFRS 15 “Revenue from Contracts with Customers” and related amendments IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and will supersede IAS 18, “Revenue,” IAS 11, “Construction Contracts,” and a number of revenue-related interpretations. Please refer to Note 4 for information relating to the relevant accounting policies. The Company elected only to retrospectively apply IFRS 15 to contracts that were not completed on January 1, 2018 and elected not to restate prior reporting period with the cumulative effect of the initial application recognized at the date of initial application. - 129 - The impact on assets, liabilities and equity when retrospectively applying IFRS 15 on January 1, 2018 is detailed below: Carrying Amount as of December 31, 2017 (IAS 18 and Revenue-related Interpretations) Adjustments Arising from Initial Application Carrying Amount as of January 1, 2018 (IFRS 15) Note Investments accounted for using equity method $ 463,986,364 $ 32,030 $ 464,018,394 (1) Total effect on assets $ 32,030 Provisions - current Accrued expenses and other current liabilities 13,174,825 $ (13,174,825) - (2) 57,686,386 13,174,825 70,861,211 (2) Total effect on liabilities $ - Retained earnings 1,233,362,010 $ 32,030 1,233,394,040 (1) Total effect on equity $ 32,030 (1) Prior to the application of IFRS 15, the Company recognizes revenue based on the accounting treatment of the sales of goods. Under IFRS 15, certain subsidiaries and associates accounted for using equity method will change to recognize revenue over time because customers are deemed to have control over the products when the products are manufactured. As a result, the Company will adjust related investments and equity accordingly. (2) Prior to the application of IFRS 15, the Company recognized the estimation of sales returns and allowance as provisions. Under IFRS 15, the Company recognizes such estimation as refund liability (classified under accrued expenses and other current liabilities). The following table shows the amount affected in the current period by the application of IFRS 15 as compared to IAS 18: Impact on Assets, Liabilities and Equity December 31, 2018 Increase in investments accounted for using equity method $ 31,791 Total effect on assets Decrease in provisions - current Increase in accrued expenses and other current liabilities Total effect on liabilities Increase in retained earnings Total effect on equity - 130 - $ 31,791 $ (21,199,032) 21,199,032 $ - $ 31,791 $ 31,791 Impact on Total Comprehensive Income Increase in share of the profit or loss of associates Increase in net income for the year Year Ended December 31, 2018 $ 31,791 $ 31,791 3) Please refer to Note 29 for the disclosure of amendment to IAS 7 “Disclosure Initiative” b. Amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers for application starting from 2019 and the IFRSs issued by IASB and endorsed by FSC with effective date starting 2019. New, Amended or Revised Standards and Interpretations (the “New IFRSs”) Effective Date Announced by IASB (Note 1) Annual Improvements to IFRSs 2015-2017 Cycle Amendments to IFRS 9 “Prepayment Features with Negative Compensation” IFRS 16 “Leases” Amendments to IAS 19 “Plan Amendment, Curtailment or January 1, 2019 January 1, 2019 (Note 2) January 1, 2019 January 1, 2019 (Note 3) Settlement” Amendments to IAS 28 “Long-term Interests in Associates and Joint January 1, 2019 Ventures” IFRIC 23 “Uncertainty over Income Tax Treatments” January 1, 2019 Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates. Note 2: The FSC permits the election for early adoption of the amendments starting from 2018. Note 3: The Company shall apply these amendments to plan amendments, curtailments or settlements occurring on or after January 1, 2019. Except for the following items, the Company believes that the adoption of aforementioned standards or interpretations will not have a significant effect on the Company’s accounting policies. 1) IFRS 16 “Leases” IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 “Leases”, IFRIC 4 “Determining whether an Arrangement contains a Lease”, and a number of related interpretations. Definition of a lease Upon initial application of IFRS 16, the Company will apply the guidance of IFRS 16 in determining whether contracts are, or contain, a lease only to contracts entered into (or changed) on or after January 1, 2019. Contracts identified as containing a lease under IAS 17 and IFRIC 4 will not be reassessed and will be accounted for in accordance with the transitional provisions under IFRS 16. - 131 - The Company as lessee Upon initial application of IFRS 16, except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Company will recognize right-of-use assets and lease liabilities for all leases on the parent company only balance sheets. On the parent company only statements of comprehensive income, the Company will present the depreciation expense charged on right-of-use assets separately from the interest expense accrued on lease liabilities and computed using the effective interest method. On the parent company only statements of cash flows, cash payments for both the principal portion and the interest portion of lease liabilities are classified within financing activities. Upon initial application of IFRS 16, the Company will apply IFRS 16 retrospectively with the cumulative effect of the initial application recognized at the date of initial application but will not restate comparative information. Leases agreements classified as operating leases under IAS 17, except for leases of low-value asset and short-term leases, will be measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments. Right-of-use assets are subject to impairment testing under IAS 36. The Company will apply the following practical expedients to measure right-of-use assets and lease liabilities on January 1, 2019 : a) The Company will apply a single discount rate to a portfolio of leases with reasonably similar characteristics to measure lease liabilities. b) The Company will account for those leases for which the lease term ends on or before December 31, 2019 as short-term leases. c) Except for lease payment, the Company will exclude incremental costs of obtaining the lease from the measurement of right-of-use assets on January 1, 2019. d) The Company will determine lease terms (e.g. lease periods) based on the projected status on January 1, 2019, to measure lease liabilities. The weighted average lessee’s incremental borrowing rate used by the Company to calculate lease liabilities recognized on January 1, 2019 is 1.25%. The reconciliation between the lease liabilities recognized and the future minimum lease payments of non-cancellable operating lease on December 31, 2018 is presented as follows: The future minimum lease payments of non-cancellable operating lease on December 31, 2018 Less: Recognition exemption for short-term leases Undiscounted gross amounts on January 1, 2019 $ 18,721,881 (3,163,562) $ 15,558,319 Discounted using the incremental borrowing rate on January 1, 2019 Add: Adjustments as a result of a different treatment of extension and purchase $ 14,652,188 options Lease liabilities recognized on January 1, 2019 3,106,390 $ 17,758,578 - 132 - The Company as lessor Except for sublease transactions, the Company will not make any adjustments for leases in which it is a lessor, and will account for those leases under IFRS 16 starting from January 1, 2019. On the basis of the remaining contractual terms and conditions on January 1, 2019, all of the Company’s subleases will be classified as operating leases. Impact on assets, liabilities and equity on January 1, 2019 Carrying Amount as of December 31, 2018 Adjustments Arising from Initial Application Adjusted Carrying Amount as of January 1, 2019 Other current assets Right-of-use assets Refundable deposits and others $ 4,184,918 - 1,666,863 $ 17,831,257 (6,783) $ 4,178,135 17,831,257 1,665,897 (966) Total effect on assets $ 17,823,508 Accrued expenses and other current liabilities Lease liabilities - noncurrent Other noncurrent liabilities Total effect on liabilities Total effect on equity 49,778,042 - 451,488 $ 2,347,167 15,411,411 64,930 52,125,209 15,411,411 516,418 $ 17,823,508 $ - c. The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC New, Revised or Amended Standards and Interpretations Effective Date Issued by IASB Amendments to IFRS 3 “Definition of a Business” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets January 1, 2020 (Note 1) To be determined by IASB between an Investor and its Associate or Joint Venture” Amendments to IAS 1 and IAS 8 “Definition of Material” January 1, 2020 (Note 2) Note 1: The Company shall apply these amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Note 2: The Company shall apply these amendments prospectively for annual reporting periods beginning on or after January 1, 2020. As of the date the accompanying parent company only financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation. - 133 -  4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For the convenience of readers, the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language parent company only financial statements shall prevail. Statement of Compliance The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Accounting Standards Used in Preparation of the Parent Company Only Financial Statements”). Basis of Preparation The accompanying parent company only financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets. When preparing the parent company only financial statements, the Company account for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements. Foreign Currencies In preparing the parent company only financial statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated. For the purposes of presenting parent company only financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity. Classification of Current and Noncurrent Assets and Liabilities Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or consumed within one year from the end of the reporting period. Current liabilities are obligations incurred for trading purposes and obligations expected to be settled within one year from the end of the reporting period. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively. - 134 - Cash Equivalents Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time deposits and investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Financial Instruments Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Financial Assets The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Regular way purchases or sales of financial assets are recognized and derecognized on a trade date or settlement date basis for which financial assets were classified in the same way, respectively. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. a. Category of financial assets and measurement 2018 Financial assets are classified into the following categories: financial assets at FVTPL, investments in debt instruments and equity instruments at FVTOCI, and financial assets at amortized cost. 1) Financial asset at FVTPL For certain financial assets which include debt instruments that do not meet the criteria of amortized cost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arising from remeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest earned on the financial asset. 2) Investments in debt instruments at FVTOCI Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of collecting contractual cash flows and selling the financial assets, are measured at FVTOCI. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when these debt instruments are disposed. - 135 - 3) Investments in equity instruments at FVTOCI On initial recognition, the Company may irrevocably designate investments in equity investments that is not held for trading as at FVTOCI. Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the Company’s rights clearly represent a recovery of part of the cost of the investment. 4) Measured at amortized cost Cash and cash equivalents, debt instrument investments, notes and accounts receivable (including related parties), other receivables and refundable deposits are measured at amortized cost. Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of holding financial assets in order to collect contractual cash flows, are measured at amortized cost. Subsequent to initial recognition, financial assets measured at amortized cost are measured at amortized cost, which equals to carrying amount determined by the effective interest method less any impairment loss. 2017 Financial assets are classified into the following specified categories: Financial assets at FVTPL, available-for-sale financial assets, held-to-maturity financial assets and loans and receivables. 1) Financial asset at FVTPL Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss. Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. 2) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated as available-for-sale or are not classified as (a) loans and receivables, (b) held-to-maturity financial assets or (c) financial assets at fair value through profit or loss. Available-for-sale financial assets are measured at fair value. income from available-for-sale monetary financial assets and dividends on available-for-sale equity investments are recognized in profit or loss. Other changes in the carrying amount of available-for-sale financial assets are recognized in other comprehensive income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss. Interest Dividends on available-for-sale equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established. - 136 - Available-for-sale equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less any identified impairment losses at the end of each reporting period. Such equity instruments are subsequently remeasured at fair value when their fair value can be reliably measured, and the difference between the carrying amount and fair value is recognized in profit or loss or other comprehensive income. 3) Held-to-maturity financial assets Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity. Subsequent to initial recognition, held-to-maturity financial assets are measured at amortized cost using the effective interest method less any impairment. 4) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables including cash and cash equivalents, notes and accounts receivable and other receivables are measured at amortized cost using the effective interest method, less any impairment, except for those loans and receivables with immaterial discounted effect. b. Impairment of financial assets 2018 At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at FVTOCI. The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument. The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset. 2017 Financial assets, other than those carried at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Those financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, their estimated future cash flows have been affected. For financial assets carried at amortized cost, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. The Company assesses the collectability of receivables by performing the account aging analysis and examining current trends in the credit quality of its customers. - 137 - For financial assets carried at amortized cost, the amount of the impairment loss is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial assets at the date the impairment loss is reversed does not exceed what the amortized cost would have been had the impairment loss not been recognized. When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss in the year. In respect of available-for-sale equity instruments, impairment losses previously recognized in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to the recognition of an impairment loss is recognized in other comprehensive income and accumulated under the heading of unrealized gains or losses from available-for-sale financial assets. For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. c. Derecognition of financial assets 2018 The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss. 2017 The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. - 138 - On derecognition of a financial asset in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. Financial Liabilities and Equity Instruments Classification as debt or equity Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Financial liabilities Financial liabilities are subsequently measured either at amortized cost using effective interest method or at FVTPL. Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or is designated as at fair value through profit or loss. Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently measured at amortized cost at the end of each reporting period. Derecognition of financial liabilities The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. Derivative Financial Instruments Derivative financial instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative financial instrument is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. Financial Instruments Designated as at Fair Value through Profit or Loss financial instrument may be designated as at FVTPL upon A The financial instrument forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis. recognition. initial - 139 - Hedge Accounting Cash flow hedge The Company designates certain hedging instruments, such as forward exchange contracts and foreign currency deposits, to partially hedge its foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The effective portion of changes in the fair value of hedging instruments is recognized in other comprehensive income. When the forecast transactions actually take place, the associated gains or losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the hedged items. The gains or losses from hedging instruments relating to the ineffective portion are recognized immediately in profit or loss. 2018 The Company prospectively discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance when the hedging instrument expires or is sold, terminated or exercised. 2017 Hedge accounting was discontinued prospectively when the Company revoked the designated hedging relationship, when the hedging instrument expired or was sold, terminated, or exercised; or no longer met the criteria for hedge accounting. Inventories Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard cost and adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Investments Accounted for Using Equity Method Investments accounted for using the equity method include investments in subsidiaries and associates. Investment in subsidiaries A subsidiary is an entity that is controlled by the Company. Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries. Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity. When the Company loses control of a subsidiary, any retained investment of the former subsidiary is measured at the fair value at that date. A gain or loss is recognized in profit or loss and calculated as the difference between (a) the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and (b) the previous carrying amount of the investments in such subsidiary. In addition, the Company shall account for all amounts previously recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the subsidiary had directly disposed of the related assets and liabilities. - 140 - When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with the subsidiaries are recognized in the Company’s parent company only financial statements only to the extent of interests in the subsidiaries that are not owned by the Company. Investment in associates An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The operating results and assets and liabilities of associates are incorporated in these parent company only financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognized in the statement of financial position at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes its share in the changes in the equities of associates. Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases. The Company discontinues the use of the equity method from the date when the Company ceases to have significant influence over an associate. When the Company retains an interest in the former associate, the Company measures the retained interest at fair value at that date. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Company shall account for all amounts recognized in other comprehensive income in relation to that associate on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. If the Company’s ownership interest in an associate is reduced as a result of disposal, but the investment continues to be an associate, the Company should reclassify to profit or loss only a proportionate amount of the gain or loss previously recognized in other comprehensive income. When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Company’s ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. When the Company transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s parent company only financial statements only to the extent of interests in the associate that are not owned by the Company. - 141 - Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment. Costs include any incremental costs that are directly attributable to the construction or acquisition of the item of property, plant and equipment. Property, plant and equipment in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other identical categories of property, plant and equipment, commences when the assets are available for their intended use. Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful lives, and it is computed using the straight-line method over the following estimated useful lives: buildings - 10 to 20 years; machinery and equipment - 2 to 5 years; and office equipment - 3 to 5 years. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. Land is not depreciated. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. Leases Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Company as lessor Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. The Company as lessee Operating lease payments are recognized as an expense on a straight-line basis over the lease term. Intangible Assets Goodwill Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any. Other intangible assets Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the following estimated useful lives: Technology license fees - the estimated life of the technology or the term of the technology transfer contract; software and system design costs - 3 years or contract period; patent and others - the economic life or contract period. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. - 142 - Impairment of Tangible and Intangible Assets Goodwill Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is an indication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash generating units or groups of cash-generating units that are expected to benefit. If the recoverable amount of a cash generating unit is less than its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill allocated to such cash-generating unit and then to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods. Other tangible and intangible assets At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. Provision Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. - 143 - Guarantee Deposit Guarantee deposit mainly consists of cash received under deposit agreements with customers to ensure they have access to the Company’s specified capacity; and as guarantee of accounts receivable to ensure payment from customers. Cash received from customers is recorded as guarantee deposit upon receipt. Guarantee deposits are refunded to customers when terms and conditions set forth in the deposit agreements have been satisfied. Revenue Recognition 2018 The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods which is generally when the goods are delivered to the customers’ specified locations. Revenue from sale of goods is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns and other allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms to recognize refund liabilities, which is classified under accrued expenses and other current liabilities. In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting. 2017 Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Sale of goods Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:  The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;  The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;  The amount of revenue can be measured reliably;   The costs incurred or to be incurred in respect of the transaction can be measured reliably. It is probable that the economic benefits associated with the transaction will flow to the Company; and In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting. - 144 - Dividend and interest income Dividend income from investments is recognized when the shareholder’s right to receive payment has been established, provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. Employee Benefits Short-term employee benefits Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees. Retirement benefits For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense when the employees have rendered service entitling them to the contribution. For defined benefit retirement benefit plans, the cost of providing benefit is recognized based on actuarial calculations. Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax Income tax on unappropriated earnings is expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent to the year the earnings are generated. Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision. Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the parent company only financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. - 145 - Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Current and deferred tax for the year Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively. 5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY In the application of the aforementioned Company’s accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years. Revenue Recognition The Company recognizes revenue when the conditions described in Note 4 are satisfied. The Company also records estimated future returns and other allowances in the same period the related revenue is recorded. Estimated sales returns and other allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms, and the Company periodically reviews the adequacy of the estimation used. Timing to commence depreciation of property, plant and equipment As described in Note 4, depreciation of property, plant and equipment begins when the assets are available for use, and in the condition necessary for the assets to be capable of operating in the intended manner. The criteria to determine whether assets are available for their intended use vary within categories of assets as well as involve subjective judgments, thus validity of the timing to commence depreciation of property, plant and equipment could have a material impact on the Company’s financial performance. - 146 - Impairment of Tangible and Intangible Assets Other than Goodwill In the process of evaluating the potential impairment of tangible and intangible assets other than goodwill, the Company is required to make subjective judgments in determining the independent cash flows, useful lives, expected future revenue and expenses related to the specific asset groups with the consideration of the nature of semiconductor industry. Any changes in these estimates based on changed economic conditions or business strategies could result in significant impairment charges or reversal in future years. Impairment of Goodwill The assessment of impairment of goodwill requires the Company to make subjective judgment to determine the identified cash-generating units, allocate the goodwill to relevant cash-generating units and estimate the recoverable amount of relevant cash-generating units. Impairment Assessment on Investment Using Equity Method The Company assesses the impairment of investments accounted for using the equity method whenever triggering events or changes in circumstances indicate that an investment may be impaired and carrying value may not be recoverable. The Company measures the impairment based on a projected future cash flow of the investees, including the underlying assumptions of sales growth rate and capacity utilization rate formulated by such investees’ internal management team. The Company also takes into account market conditions and the relevant industry trends to ensure the reasonableness of such assumptions. Realization of Deferred Income Tax Assets Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets. Valuation of Inventory Inventories are stated at the lower of cost or net realizable value, and the Company uses judgment and estimate to determine the net realizable value of inventory at the end of each reporting period. The Company estimates the net realizable value of inventory for obsolescence and unmarketable items at the end of reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a specific time horizon. Recognition and Measurement of Defined Benefit Plans Net defined benefit liability and the resulting defined benefit costs under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, rate of employee turnover, and future salary increase rate. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability. - 147 -  6. CASH AND CASH EQUIVALENTS December 31, 2018 December 31, 2017 Cash and deposits in banks Repurchase agreements collateralized by corporate bonds Commercial paper $ 238,473,857 1,229,600 499,068 $ 239,176,841 - - $ 240,202,525 $ 239,176,841 Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts of cash and were subject to an insignificant risk of changes in value. 7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets Mandatorily measured at FVTPL Forward exchange contracts Held for trading Forward exchange contracts Financial liabilities Held for trading Forward exchange contracts December 31, 2018 December 31, 2017 $ 54,115 $ - - 373,351 $ 54,115 $ 373,351 $ 30,232 $ 18,764 The Company entered into derivative contracts to manage exposures due to fluctuations of foreign exchange rates. These derivative contracts did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for these derivative contracts. Outstanding forward exchange contracts consisted of the following: Maturity Date Contract Amount (In Thousands) December 31, 2018 Sell NT$/Buy EUR Sell NT$/Buy JPY Sell US$/Buy JPY Sell US$/Buy NT$ December 31, 2017 Sell NT$/Buy EUR Sell NT$/Buy JPY Sell US$/Buy NT$ January 2019 to March 2019 January 2019 to March 2019 January 2019 January 2019 NT$18,545,854/EUR527,000 NT$4,757,858/JPY17,200,000 US$162,834/JPY17,976,014 US$110,000/NT$3,386,459 January 2018 to February 2018 February 2018 January 2018 NT$6,002,786/EUR169,000 NT$996,294/JPY3,800,000 US$1,643,000/NT$49,120,205 - 148 -  8. HEDGING FINANCIAL INSTRUMENTS 2018 Financial assets- current Cash flow hedges Forward exchange contracts Financial liabilities- current Cash flow hedges Forward exchange contracts December 31, 2018 $ 23,497 $ 1,941 The Company entered into forward exchange contracts and foreign currency deposits to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The forward exchange contracts have maturities of 12 months or less. On the basis of economic relationships, the Company expects that the value of forward exchange contracts and foreign currency deposits and the value of hedged transactions will change in opposite directions in response to movements in foreign exchange rates. The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward exchange contracts and foreign currency deposits. No other sources of ineffectiveness emerged from these hedging relationships. For the year ended December 31, 2018, refer to Note 20(d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items. The following tables summarize the information relating to the hedges for foreign currency risk as of December 31, 2018. Hedging Instruments Contract Amount (in Thousands) Maturity Balance in Other Equity (Continuing Hedges) Forward exchange contracts NT$3,917,657/EUR112,000 February 2019 to $ 23,601 April 2019 - 149 - The effect for the year ended December 31, 2018 is detailed below: Hedged Items Hedging Instruments Forward exchange contracts Foreign currency deposits Hedged Items Forecast transaction (capital expenditures) 2017 Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness $ 34,563 6,412 $ 40,975 $ (40,975) The Company’s hedging policies for 2017 are the same as those mentioned previously in 2018, the instruments employed are as follows: Financial assets- current Cash flow hedges Forward exchange contracts Financial liabilities- current Cash flow hedges Forward exchange contracts December 31, 2017 $ 7,378 $ 15,562 The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). These contracts have maturities of 12 months or less. Outstanding forward exchange contracts consisted of the following: Maturity Date Contract Amount (In Thousands) December 31, 2017 Sell NT$/Buy EUR February 2018 to May 2018 NT$2,649,104/EUR75,000 - 150 -  9. NOTES AND ACCOUNTS RECEIVABLE, NET December 31, 2018 December 31, 2017 At amortized cost Notes and accounts receivable Less: Loss allowance At FVTOCI $ 33,097,452 (7,132) 33,090,320 3,595,069 $ 27,124,552 (469,125) 26,655,427 - The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. $ 36,685,389 $ 26,655,427 2018 In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment losses on credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels. Such risk levels are determined with factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount. Aging analysis of notes and accounts receivable, net Not past due Past due Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days Movements of the loss allowance for accounts receivable Balance at January 1, 2018 (IAS 39) Effect of retrospective application of IFRS 9 Balance at January 1, 2018 (IFRS 9) Provision (Reversal) Balance at December 31, 2018 December 31, 2018 $ 29,258,313 6,956,366 464,879 2,872 2,959 $ 36,685,389 $ 469,125 (244,773) 224,352 (217,220) $ 7,132 For the year ended December 31, 2018, the decrease in loss allowance was mainly due to the variations from accounts receivable balance of different risk levels. - 151 - 2017 In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current financial condition of customers. Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis at the end of the reporting period is summarized in the following table. There was no impairment concern for the accounts receivable that were past due without recognizing a specific allowance for doubtful receivables since there was no significant change in the credit quality of its customers after the assessment. In addition, the Company’s subsidiary has obtained guarantee of NT$2,427,548 thousand against certain receivables. Aging analysis of notes and accounts receivable, net Neither past due nor impaired Past due but not impaired Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days Movements of the allowance for doubtful receivables Balance at January 1, 2017 Reversal/Write-off Balance at December 31, 2017 10. INVENTORIES Finished goods Work in process Raw materials Supplies and spare parts December 31, 2017 $ 19,632,314 5,169,209 929,672 582,821 341,411 $ 26,655,427 Individually Assessed for Impairment Collectively Assessed for Impairment Total $ $ - - - $ 475,430 (6,305) $ 475,430 (6,305) $ 469,125 $ 469,125 December 31, 2018 December 31, 2017 $ 10,920,351 70,405,998 14,110,534 2,651,277 $ 9,596,837 52,166,234 6,566,716 1,967,658 $ 98,088,160 $ 70,297,445 - 152 - Write-down of inventories to net realizable value (excluding computer virus outbreak losses) and reversal of write-down of inventories resulting from the increase in net realizable value in the amount of NT$1,098,915 thousand and NT$878,346 thousand, respectively, were included in the cost of revenue for the years ended December 31, 2018 and 2017. Please refer to computer virus outbreak losses in Note 35. 11. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD Investments accounted for using the equity method consisted of the following: Subsidiaries Associates a. Investments in subsidiaries Subsidiaries consisted of the following: December 31, 2018 December 31, 2017 $ 531,717,913 17,842,971 $ 446,148,086 17,838,278 $ 549,560,884 $ 463,986,364 Investing in companies involved Tortola, British 52,339,094 49,684,287 100% 100% Place of Incorporation and Operation Tortola, British Virgin Islands Shanghai, China Carrying Amount % of Ownership and Voting Rights Held by the Company December 31, December 31, December 31, December 31, 2018 2017 $ 393,577,931 $ 309,211,877 55,466,911 51,060,885 2018 100% 100% 2017 100% 100% Virgin Islands Nanjing, China 20,601,413 26,493,740 100% 100% Hsinchu, Taiwan 4,531,929 4,667,162 87% 87% San Jose, California, U.S.A. Amsterdam, the Netherlands Cayman Islands 4,269,393 4,001,003 100% 100% 445,828 194,660 407,324 152,836 100% 98% 100% 98% Cayman Islands 128,758 320,533 98% 98% Subsidiaries Principal Activities Investment activities Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices in the design, manufacture, and other related business in the semiconductor industry and other investment activities Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter integrated circuits and other semiconductor devices Customer service and supporting activities Investing in new start-up technology companies Investing in new start-up technology companies TSMC Global Ltd. (TSMC Global) TSMC China Company Limited (TSMC China) TSMC Partners, Ltd. (TSMC Partners) TSMC Nanjing Company Limited (TSMC Nanjing) VisEra Technologies Company Ltd. (VisEra Tech) TSMC Europe B.V. (TSMC Europe) VentureTech Alliance Fund III, L.P. (VTAF III) VentureTech Alliance Fund II, L.P. (VTAF II) TSMC Japan Limited (TSMC Japan) TSMC Korea Limited (TSMC Korea) TSMC Solar Europe GmbH TSMC North America Selling and marketing of Customer service and supporting Yokohama, Japan 141,136 129,446 activities Customer service and supporting Seoul, Korea 40,966 39,210 activities Selling of solar related products Hamburg, and providing customer service Germany (20,106 ) ) (20,217 ) $ 531,717,913 $ 446,148,086 100% 100% 100% 100% 100% 100% - 153 - TSMC Solar Europe GmbH is under liquidation procedures. In both 2018 and 2017, the Company continually increased its investment in TSMC Nanjing for the amount of NT$2,361,320 thousand and NT$21,724,892 thousand. This project was approved by the Investment Commission, Ministry of Economic Affairs, R.O.C. (MOEA). To lower the hedging cost, in both of 2018 and 2017, the Company continually increased its investment in TSMC Global for the amount of NT$62,272,080 thousand and NT$60,683,010 thousand, respectively. This project was approved by the Investment Commission, MOEA. b. Investments in associates Associates consisted of the following: Name of Associate Principal Activities Place of Incorporation and Operation Carrying Amount % of Ownership and Voting Rights Held by the Company December 31, December 31, December 31, December 31, 2018 2017 2018 2017 28% Vanguard International Manufacturing, selling, Hsinchu, Taiwan $ 9,006,126 $ 8,568,344 28% Semiconductor Corporation (VIS) Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks Manufacturing and selling of Singapore 5,772,815 5,677,640 39% 39% integrated circuits and other semiconductor devices Xintec Inc. (Xintec) Wafer level chip size packaging Taoyuan, Taiwan 1,764,607 2,292,100 41% 41% and wafer level post passivation interconnection service Global Unichip Researching, developing, Hsinchu, Taiwan 1,299,423 1,300,194 35% 35% Corporation (GUC) manufacturing, testing and marketing of integrated circuits $ 17,842,971 $ 17,838,278 As of December 31, 2018 and 2017, no investments in associates are individually material to the Company. Please refer to the parent company only statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material. The market prices of the investments accounted for using the equity method in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement. Name of Associate VIS GUC Xintec December 31, 2018 December 31, 2017 $ 27,621,298 $ 9,617,699 $ 3,783,585 $ 30,638,751 $ 11,905,404 $ 9,180,759 - 154 - 12. PROPERTY, PLANT AND EQUIPMENT Land Buildings Machinery and Equipment Office Equipment Equipment under Installation and Construction in Progress Total Cost Balance at January 1, 2018 Additions (Deductions) Disposals or retirements $ 3,212,000 - - $ 357,391,050 24,665,225 (410,891 ) $ 2,369,226,722 231,468,189 (15,065,446 ) $ 39,403,217 5,036,411 (716,942 ) $ 144,776,878 26,500,451 - $ 2,914,009,867 287,670,276 (16,193,279 ) Balance at December 31, 2018 $ 3,212,000 $ 381,645,384 $ 2,585,629,465 $ 43,722,686 $ 171,277,329 $ 3,185,486,864 Accumulated depreciation and impairment Balance at January 1, 2018 Additions Disposals or retirements $ Balance at December 31, 2018 $ Carrying amounts at December 31, - - - - - $ 176,623,784 22,534,543 (398,955 ) - $ $ 1,695,482,201 246,686,584 (11,102,618 ) 423,468 $ 25,547,912 5,119,413 (716,409 ) - - - - - $ 1,897,653,897 274,340,540 (12,217,982 ) 423,468 $ 198,759,372 $ 1,931,489,635 $ 29,950,916 $ - $ 2,160,199,923 2018 Cost $ 3,212,000 $ 182,886,012 $ 654,139,830 $ 13,771,770 $ 171,277,329 $ 1,025,286,941 Balance at January 1, 2017 Additions (Deductions) Disposals or retirements $ 3,212,000 - - $ 281,936,412 75,491,595 (36,957 ) $ 1,960,457,480 458,690,837 (49,921,595 ) $ 31,830,657 7,888,336 (315,776 ) $ 384,197,526 (239,420,648 ) - $ 2,661,634,075 302,650,120 (50,274,328 ) Balance at December 31, 2017 $ 3,212,000 $ 357,391,050 $ 2,369,226,722 $ 39,403,217 $ 144,776,878 $ 2,914,009,867 Accumulated depreciation and impairment Balance at January 1, 2017 Additions Disposals or retirements $ Balance at December 31, 2017 $ Carrying amounts at December 31, - - - - $ 156,854,513 19,798,087 (28,816 ) $ 1,504,061,808 226,251,816 (34,831,423 ) $ 21,316,417 4,547,232 (315,737 ) $ - - - $ 1,682,232,738 250,597,135 (35,175,976 ) $ 176,623,784 $ 1,695,482,201 $ 25,547,912 $ - $ 1,897,653,897 2017 $ 3,212,000 $ 180,767,266 $ 673,744,521 $ 13,855,305 $ 144,776,878 $ 1,016,355,970 The significant part of the Company’s buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively. For the year ended December 31, 2018, the Company recognized an impairment loss of NT$423,468 thousand for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses. - 155 - 13. INTANGIBLE ASSETS Goodwill Technology License Fees Software and System Design Costs Patent and Others Total Cost Balance at January 1, 2018 Additions Disposals or retirements $ 1,567,756 - - $ 10,388,175 533,669 - $ 24,963,709 4,361,894 (185,592 ) $ 5,590,392 2,017,145 - $ 42,510,032 6,912,708 (185,592 ) Balance at December 31, 2018 $ 1,567,756 $ 10,921,844 $ 29,140,011 $ 7,607,537 $ 49,237,148 Accumulated amortization and impairment Balance at January 1, 2018 Additions Disposals or retirements Balance at December 31, 2018 Carrying amounts at December 31, 2018 Cost $ $ $ - - - - $ 7,639,775 1,063,616 - $ 20,282,457 2,766,396 (185,534 ) $ 4,717,673 522,835 $ 32,639,905 4,352,847 (185,534 ) - $ 8,703,391 $ 22,863,319 $ 5,240,508 $ 36,807,218 1,567,756 $ 2,218,453 $ 6,276,692 $ 2,367,029 $ 12,429,930 Balance at January 1, 2017 Additions $ 1,567,756 - $ 9,490,320 897,855 $ 22,063,589 2,900,120 $ 5,241,203 349,189 $ 38,362,868 4,147,164 Balance at December 31, 2017 $ 1,567,756 $ 10,388,175 $ 24,963,709 $ 5,590,392 $ 42,510,032 Accumulated amortization and impairment Balance at January 1, 2017 Additions Balance at December 31, 2017 Carrying amounts at December 31, 2017 $ $ $ - - - $ 6,091,513 1,548,262 $ 17,991,500 2,290,957 $ 4,231,864 485,809 $ 28,314,877 4,325,028 $ 7,639,775 $ 20,282,457 $ 4,717,673 $ 32,639,905 1,567,756 $ 2,748,400 $ 4,681,252 $ 872,719 $ 9,870,127 The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rates of 9.0% and 8.5% in its test of impairment as of December 31, 2018 and 2017, respectively, to reflect the relevant specific risk in the cash-generating unit. For the years ended December 31, 2018 and 2017, the Company did not recognize any impairment loss on goodwill. 14. OTHER ASSETS Tax receivable Prepaid expenses Others December 31, 2018 December 31, 2017 $ 3,245,082 939,176 660 $ 1,992,258 492,247 287 $ 4,184,918 $ 2,484,792 - 156 - 15. SHORT-TERM LOANS Unsecured loans Related parties unsecured loans Original loan content US$ (in thousands) EUR(in thousands) Annual interest rate Maturity date December 31, 2018 December 31, 2017 $ 88,754,640 3,227,700 $ 63,766,850 - $ 91,982,340 $ 91,982,340 $ 2,715,000 242,000 0.01%-3.22% Due by April 2019 $ 2,150,000 - 1.54%-1.82% Due by February 2018 The annual interest rate of short-term loans from related parties was not significantly different from those of sales to third parties. 16. PROVISIONS The Company’s current provisions were provisions for sales returns and allowances. Year Ended December 31, 2017 Balance, beginning of year Provision Payment Balance, end of year Sales Returns and Allowances $ 16,991,612 44,244,876 (48,061,663) $ 13,174,825 Provisions for sales returns and allowances are estimated based on historical experience and the consideration of varying contractual terms, and are recognized as a reduction of revenue in the same year of the related product sales. Starting from 2018, the Company recognizes the estimation of sales returns and allowance as refund liability (classified under accrued expenses and other current liabilities) upon initial application of IFRS 15. 17. BONDS PAYABLE Domestic unsecured bonds Less: Current portion December 31, 2018 December 31, 2017 $ 91,800,000 $ 116,100,000 (34,900,000) (24,300,000) $ 56,900,000 $ 91,800,000 - 157 - The major terms of domestic unsecured bonds are as follows: Issuance Tranche Issuance Period Total Amount Coupon Rate Repayment and Interest Payment 100-1 100-2 101-1 101-2 101-3 101-4 102-1 102-2 102-3 102-4 B A B A B A B - A B C A B C A B A B B C September 2011 to September 2018 January 2012 to January 2017 January 2012 to January 2019 August 2012 to August 2017 August 2012 to August 2019 September 2012 to September 2017 September 2012 to September 2019 October 2012 to October 2022 January 2013 to January 2018 January 2013 to January 2020 January 2013 to January 2023 February 2013 to February 2018 February 2013 to February 2020 February 2013 to February 2023 $ 7,500,000 1.63% Bullet repayment; interest payable annually 10,000,000 1.29% The same as above 7,000,000 1.46% The same as above 9,900,000 1.28% The same as above 9,000,000 1.40% The same as above 12,700,000 1.28% The same as above 9,000,000 1.39% The same as above 4,400,000 1.53% The same as above 10,600,000 1.23% The same as above 10,000,000 1.35% The same as above 3,000,000 1.49% The same as above 6,200,000 1.23% The same as above 11,600,000 1.38% The same as above 3,600,000 1.50% The same as above July 2013 to July 2020 10,200,000 3,500,000 July 2013 to July 2023 4,000,000 August 2013 to August 2017 August 2013 to August 2019 September 2013 to September 2017 September 2013 to March 2019 8,500,000 1,400,000 1,500,000 1.50% 1.70% 1.34% The same as above The same as above The same as above 1.52% The same as above 1.45% The same as above 1.60% Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity) (Continued) - 158 - Issuance Tranche Issuance Period Total Amount Coupon Rate Repayment and Interest Payment 102-4 D September 2013 to March 2021 $ 2,600,000 1.85% Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity) E F September 2013 to March 2023 September 2013 to September 2023 5,400,000 2.05% The same as above 2,600,000 2.10% Bullet repayment; interest payable annually (Concluded) 18. RETIREMENT BENEFIT PLANS a. Defined contribution plans The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Accordingly, the Company recognized expenses of NT$2,028,928 thousand and NT$1,905,444 thousand for the years ended December 31, 2018 and 2017, respectively. b. Defined benefit plans The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds. - 159 - Amounts recognized in respect of these defined benefit plans were as follows: Current service cost Net interest expense Components of defined benefit costs recognized in profit or loss Remeasurement on the net defined benefit liability: Return on plan assets (excluding amounts included in net interest expense) Actuarial loss arising from experience adjustments Actuarial loss(gain) arising from changes in financial assumptions Components of defined benefit costs recognized in other comprehensive income Years Ended December 31 2018 2017 $ $ 137,758 144,108 281,866 145,026 126,525 271,551 (71,288) 334,630 29,290 483,846 597,820 (258,455) 861,162 254,681 Total $ 1,143,028 $ 526,232 The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories: Cost of revenue Research and development expenses General and administrative expenses Marketing expenses Years Ended December 31 2018 2017 $ 177,772 79,143 20,591 4,360 $ 175,357 75,340 16,669 4,185 $ 281,866 $ 271,551 The amounts arising from the defined benefit obligation of the Company were as follows: December 31, 2018 December 31, 2017 Present value of defined benefit obligation Fair value of plan assets $ 13,662,684 (4,011,279) $ 12,774,593 (3,923,889) Net defined benefit liability $ 9,651,405 $ 8,850,704 - 160 - Movements in the present value of the defined benefit obligation were as follows: Balance, beginning of year Current service cost Interest expense Remeasurement: Years Ended December 31 2018 2017 $ 12,774,593 137,758 207,804 $ 12,480,480 145,026 185,561 Actuarial loss arising from experience adjustments Actuarial loss (gain) arising from changes in financial assumptions Benefits paid from plan assets Benefits paid directly by the Company 334,630 483,846 597,820 (274,326) (115,595) (258,455) (261,865) - Balance, end of year $ 13,662,684 $ 12,774,593 Movements in the fair value of the plan assets were as follows: Balance, beginning of year Interest income Remeasurement: Years Ended December 31 2018 2017 $ 3,923,889 63,696 $ 3,929,072 59,036 Return on plan assets (excluding amounts included in net interest expense) Contributions from employer Benefits paid from plan assets 71,288 226,732 (274,326) (29,290) 226,936 (261,865) Balance, end of year $ 4,011,279 $ 3,923,889 The fair value of the plan assets by major categories at the end of reporting period was as follows: Cash Equity instruments Debt instruments December 31, 2018 December 31, 2017 $ 756,126 2,148,040 1,107,113 $ 707,477 1,993,336 1,223,076 $ 4,011,279 $ 3,923,889 The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the actuarial valuation were as follows: Discount rate Future salary increase rate Measurement Date December 31, 2018 December 31, 2017 1.30% 3.00% 1.65% 3.00% - 161 - Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks: 1) Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets. Assuming a hypothetical decrease in interest rate at the end of the reporting period contributed to a decrease of 0.5% in the discount rate and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$921,750 thousand and NT$890,116 thousand as of December 31, 2018 and 2017, respectively. 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation. Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$901,629 thousand and NT$873,801 thousand as of December 31, 2018 and 2017, respectively. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability. The Company expects to make contributions of NT$233,534 thousand to the defined benefit plans in the next year starting from December 31, 2018. The weighted average duration of the defined benefit obligation is 13 years. 19. GUARANTEE DEPOSITS Capacity guarantee Others Current portion (classified under accrued expenses and other current liabilities) Noncurrent portion - 162 - December 31, 2018 December 31, 2017 $ 9,289,628 205,020 $ 13,346,550 282,572 $ 9,494,648 $ 13,629,122 - $ $ 6,148,000 3,346,648 $ 6,046,643 7,582,479 $ 9,494,648 $ 13,629,122 Some of guarantee deposits were refunded to customers by offsetting related accounts receivable. 20. EQUITY a. Capital stock Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital December 31, 2018 December 31, 2017 28,050,000 $ 280,500,000 25,930,380 $ 259,303,805 28,050,000 $ 280,500,000 25,930,380 $ 259,303,805 A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends. The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options. As of December 31, 2018, 1,068,157 thousand ADSs of the Company were traded on the NYSE. The number of common shares represented by the ADSs was 5,340,787 thousand shares (one ADS represents five common shares). b. Capital surplus Additional paid-in capital From merger From convertible bonds From share of changes in equities of subsidiaries From share of changes in equities of associates Donations December 31, 2018 December 31, 2017 $ 24,184,939 22,804,510 8,892,847 121,473 282,820 29,343 $ 24,184,939 22,804,510 8,892,847 118,792 289,240 19,208 $ 56,315,932 $ 56,309,536 Under the relevant laws, the capital surplus generated from donations and the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of the Company’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit; however, when generated from issuance of restricted shares for employees, such capital surplus may not be used for any purpose. - 163 - c. Retained earnings and dividend policy The Company’s Articles of Incorporation provide that, when allocating the net profits for each fiscal year, the Company shall first offset its losses in previous years and then set aside the following items accordingly: 1) Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve equals the Company’s paid-in capital; 2) Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge; 3) Any balance left over shall be allocated according to the resolution of the shareholders’ meeting. TSMC’s Articles of Incorporation provide the policy about the profit sharing bonus to employees, please refer to Note 28. The Company’s Articles of Incorporation also provide that profits of the Company may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend; provided that the ratio for stock dividend shall not exceed 50% of the total distribution. Any appropriations of the profits are subject to shareholders’ approval in the following year. The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss. Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fair value through other comprehensive income financial assets, unrealized valuation gain or loss from available-for-sale financial assets, gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses. The appropriations of 2017 and 2016 earnings had been approved by the Company’s shareholders in its meetings held on June 5, 2018 and June 8, 2017, respectively. The appropriations and dividends per share were as follows: Appropriation of Earnings For Fiscal For Fiscal Year 2016 Year 2017 Dividends Per Share (NT$) For Fiscal For Fiscal Year 2017 Year 2016 Legal capital reserve Special capital reserve Cash dividends to shareholders $ 34,311,148 26,907,527 207,443,044 $ 33,424,718 - 181,512,663 $8 $7 $ 268,661,719 $ 214,937,381 - 164 - The Company’s appropriation of earnings for 2018 had been approved in the meeting of the Board of Directors held on February 19, 2019. The appropriation and dividends per share were as follows: Legal capital reserve Special capital reserve Cash dividends to shareholders Appropriation of Earnings For Fiscal Year 2018 Dividends Per Share (NT$) For Fiscal Year 2018 $ 35,113,088 (11,459,458) 207,443,044 $ 231,096,674 $ 8 The appropriation of earnings for 2018 is to be presented for approval in the Company’s shareholders’ meeting to be held on June 5, 2019 (expected). d. Others Changes in others were as follows: Year Ended December 31, 2018 Foreign Currency Translation Reserve Unrealized Gain (Loss) on Financial Assets at FVTOCI Gain (Loss) on Hedging Instruments Unearned Stock-Based Compensation Total $ (26,697,680 ) $ (524,915 ) $ 4,226 $ (10,290 ) $ (27,228,659 ) 14,578,483 - - - - - - - - (1,189,957 ) 1,193,056 - - 40,975 (22,162 ) 76,850 (2,999,336 ) - - - 91,828 - - 562 - - - - - - 14,578,483 (1,189,957 ) 1,193,056 40,975 (22,162 ) (2,922,486 ) 8,447 - 8,447 92,390 Balance, beginning of year (IFRS 9) Exchange differences arising on translation of foreign operations Unrealized gain (loss) on financial assets at FVTOCI Equity instruments Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal Gain (loss) arising on changes in the fair value of hedging instruments Transferred to initial carrying amount of hedged items Share of other comprehensive income (loss) of associates Share of unearned stock-based employee compensation of associates Income tax effect Balance, end of year $ (12,042,347 ) $ (3,429,324 ) $ 23,601 $ (1,843 ) $ (15,449,913 ) - 165 - Year Ended December 31, 2017 Foreign Currency Translation Reserve Unrealized Gain/Loss from Available-for- sale Financial Assets Cash Flow Hedges Reserve Unearned Stock-Based Employee Compensation Total Balance, beginning of year Exchange differences arising on translation of $ 1,661,237 $ 2,641 $ 105 $ - $ 1,663,983 foreign operations (28,270,770 ) - - (28,270,770 ) Changes in fair value of available-for-sale financial assets Cumulative (gain)/loss reclassified to profit or loss upon disposal of available-for-sale financial assets Gain/(loss) arising on changes in the fair value of hedging instruments Transferred to initial carrying amount of hedged items Share of other comprehensive income (loss) of associates Share of unearned stock-based employee compensation of associates Income tax effect - - - (310,002 ) (115,690 ) - - - - - - 99,534 (94,851 ) (88,147 ) 211,951 - - - - (2,974 ) - (562 ) (10,290 ) - - - - - - (310,002 ) (115,690 ) 99,534 (94,851 ) 123,804 (10,290 ) (3,536 ) Balance, end of year $ (26,697,680 ) $ (214,074 ) $ 4,226 $ (10,290 ) $ 26,917,818 The aforementioned other equity includes the changes in other equities of the Company and the Company’s share of its subsidiaries and associates. 21. NET REVENUE a. Disaggregation of revenue from contracts with customers Product Wafer Others Geography Taiwan United States China Europe, the Middle East and Africa Japan Others Year Ended December 31, 2018 $ 906,992,422 116,933,291 $ 1,023,925,713 Year Ended December 31, 2018 $ 78,260,773 626,493,249 175,794,228 71,068,438 58,125,879 14,183,146 $ 1,023,925,713 The Company categorized the net revenue mainly based on the countries where the customers are headquartered. - 166 -  Application Type Communication Industrial/Standard Computer Consumer Resolution 7-nanometer 10-nanometer 16/20-nanometer 28-nanometer 40/45-nanometer 65-nanometer 90-nanometer 0.11/0.13 micron 0.15/0.18 micron 0.25 micron and above  Wafer revenue b. Contract balances Year Ended December 31, 2018 $ 574,350,582 232,589,200 143,744,212 73,241,719 $ 1,023,925,713 Year Ended December 31, 2018 $ 81,146,571 96,600,008 209,828,511 177,484,309 101,481,881 75,734,952 36,543,823 20,638,247 80,886,264 26,647,856 $ 906,992,422 December 31, 2018 January 1, 2018 Contract liabilities (classified under accrued expenses and other current liabilities) $ 2,740,649 $ 31,078,331 The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment. For the year ended December 31, 2018, the Company recognized NT$30,742,181 thousand as revenue from the beginning balance of contract liability. c. Refund liabilities Estimated sales returns and other allowances is made and adjusted based on historical experience and the consideration of varying contractual terms, which amounted to NT$53,382,673 thousand for the year ended December 31, 2018. As of December 31, 2018, the aforementioned refund liabilities amounted to NT$21,199,032 thousand (classified under accrued expenses and other current liabilities). - 167 - 22. OTHER OPERATING INCOME AND EXPENSES, NET Loss on disposal or retirement of property, plant and equipment, net Impairment loss on property, plant and equipment, net Others $ (557,598) $ (1,008,989) (423,468) - (252,676) (687,168) Years Ended December 31 2018 2017 $ (1,668,234) $ (1,261,665) Years Ended December 31 2018 2017 $ 1,845,471 1,731 - 1,847,202 157,905 $ 1,522,579 - 32,213 1,554,792 141,803 $ 2,005,107 $ 1,696,595 Years Ended December 31 2018 2017 $ 1,485,486 1,417,287 681 $ 1,967,750 766,001 15,889 $ 2,903,454 $ 2,749,640 Years Ended December 31 2018 2017 $ (1,498,856) - $ - 1,252,759 - 115,690 - 130,530 (6,137) 229,927 $ (1,368,326) $ 1,592,239 23. OTHER INCOME Interest income Bank deposits Financial assets at amortized cost Held-to-maturity financial assets Dividend income 24. FINANCE COSTS Interest expense Corporate bonds Bank loans Related parties 25. OTHER GAINS AND LOSSES, NET Net gain (loss) on financial instruments at FVTPL Mandatorily measured at FVTPL Held for trading Gain on disposal of financial assets, net Available-for-sale financial assets Impairment loss on financial assets Financial assets carried at cost Other gains, net - 168 - 26. INCOME TAX a. Income tax expense recognized in profit or loss Income tax expense consisted of the following: Current income tax expense Current tax expense recognized in the current year Income tax adjustments on prior years Other income tax adjustments Deferred income tax benefit Effect of tax rate changes The origination and reversal of temporary differences Years Ended December 31 2018 2017 $ 50,511,247 (963,356) 149,771 49,697,662 $ 55,187,468 (938,292) 150,168 54,399,344 (1,466,706) (3,163,687) (4,630,393) - (4,194,644) (4,191,644) Income tax expense recognized in profit or loss $ 45,067,269 $ 50,204,700 A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows: Years Ended December 31 2018 2017 Income before tax $ 396,198,153 $ 393,316,176 Income tax expense at the statutory rate Tax effect of adjusting items: Nondeductible (deductible) items in determining taxable income Tax-exempt income Additional income tax under the Alternative Minimum Tax Act Additional income tax on unappropriated earnings Effect of tax rate changes on deferred income tax The origination and reversal of temporary differences Income tax credits Income tax adjustments on prior years Other income tax adjustments $ 79,239,631 $ 66,863,750 2,636,232 (54,234,074) 21,455,854 7,420,479 (1,466,706) (3,163,687) (6,006,875) 45,880,854 (963,356) 149,771 (1,438,813) (16,467,720) - 11,835,948 - (4,194,644) (5,605,697) 50,992,824 (938,292) 150,168 Income tax expense recognized in profit or loss $ 45,067,269 $ 50,204,700 For the year ended December 31, 2017, the Company applied a tax rate of 17% for entities subject to the R.O.C. Income Tax Law. In February 2018, the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. In addition, the tax rate for 2018 unappropriated earnings was reduced from 10% to 5%. - 169 - b. Income tax expense recognized in other comprehensive income Deferred income tax benefit (expense) Related to remeasurement of defined benefit obligation Related to unrealized gain/loss on investments in equity instruments at FVTOCI Related to gain/loss on cash flow hedges Related to unrealized gain/loss on available-for-sale financial assets Years Ended December 31 2018 2017 $ 103,339 $ 30,562 91,828 562 - (562) - (2,974) $ 195,729 $ 27,026 c. Deferred income tax balance The analysis of deferred income tax assets and liabilities was as follows: Deferred income tax assets Temporary differences Depreciation Refund liability Net defined benefit liability Unrealized loss on inventories Provision for sales returns and allowance Investments in equity instruments at FVTOCI Deferred income tax liabilities Temporary differences Unrealized exchange gains Available-for-sale financial assets Others December 31, 2018 December 31, 2017 $ 11,177,890 2,543,884 1,084,874 723,835 - 56,191 $ 7,668,535 - 975,324 604,635 1,580,979 - $ 15,586,674 $ 10,829,473 $ (61,677) $ - (171,607) (169,480) (95,421) (37,304) $ (233,284) $ (302,205) - 170 - Year Ended December 31, 2018 Recognized in Balance, Beginning of Year Profit or Loss Other Comprehensive Income Balance, End of Year Deferred income tax assets Temporary differences Depreciation Refund liability Net defined benefit liability Unrealized loss on inventories Investments in equity $ 7,668,535 1,580,979 975,324 604,635 $ $ 3,509,355 962,905 6,211 119,200 - - 103,339 - $ 11,177,890 2,543,884 1,084,874 723,835 instruments at FVTOCI - - 56,191 56,191 $ 10,829,473 $ 4,597,671 $ 159,530 $ 15,586,674 Deferred income tax liabilities Temporary differences Unrealized exchange gains Investments in equity instruments at FVTOCI Others Deferred income tax assets Temporary differences Depreciation Provision for sales returns and allowance $ (169,480) $ 107,803 $ - $ (61,677) (95,421) (37,304) - (75,081) 95,421 (59,222) - (111,823) $ (302,205) $ 32,722 $ 36,199 $ (233,284) Year Ended December 31, 2017 Recognized in Balance, Beginning of Year Profit or Loss Other Comprehensive Income Balance, End of Year $ 3,284,735 $ 4,383,800 $ - $ 7,668,535 Net defined benefit liability Unrealized loss on inventories Others 1,428,787 939,543 698,858 94,858 152,192 5,219 (94,223) (94,858) - 30,562 - - 1,580,979 975,324 604,635 - Deferred income tax liabilities Temporary differences Unrealized exchange gains Available-for-sale financial assets Others $ 6,446,781 $ 4,352,130 $ 30,562 $ 10,829,473 $ (48,736) $ (120,744) - $ - $ (169,480) (92,447) - - (36,742) - (2,974) (562) (95,421) (37,304) $ (141,183) $ (157,486) $ (3,536) $ (302,205) d. The deductible temporary differences for which no deferred income tax assets have been recognized As of December 31, 2018 and 2017, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$20,060,918 thousand and NT$26,536,307 thousand, respectively. - 171 - e. Unused tax-exemption information As of December 31, 2018, the profits generated from the following projects of the Company are exempt from income tax for a five-year period: Construction and expansion of 2008 Construction and expansion of 2009 Tax-exemption Period 2015 to 2019 2018 to 2022 f. The information of unrecognized deferred income tax liabilities associated with investments As of December 31, 2018 and 2017, the aggregate taxable temporary differences associated with liabilities amounted to income investments NT$112,893,001 thousand and NT$95,003,344 thousand, respectively. in subsidiaries not recognized as deferred tax g. Income tax examination The tax authorities have examined income tax returns of the Company through 2015. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly. 27. EARNINGS PER SHARE Basic EPS Diluted EPS EPS is computed as follows: Years Ended December 31 2018 $13.54 $13.54 2017 $13.23 $13.23 Number of Shares (Denominator) (In Thousands) Amounts (Numerator) EPS (NT$) Year Ended December 31, 2018 Basic/Diluted EPS Net income available to common shareholders $ 351,130,884 25,930,380 $ 13.54 Year Ended December 31, 2017 Basic/Diluted EPS Net income available to common shareholders $ 343,111,476 25,930,380 $13.23 - 172 - 28. ADDITIONAL INFORMATION OF EXPENSES BY NATURE Years Ended December 31 2018 2017 a. Depreciation of property, plant and equipment Recognized in cost of revenue Recognized in operating expenses Recognized in other operating income and expenses $ 251,292,565 23,020,118 27,857 $ 231,042,615 19,490,010 64,510 b. Amortization of intangible assets Recognized in cost of revenue Recognized in operating expenses $ 274,340,540 $ 250,597,135 $ 2,018,702 2,334,145 $ 2,119,899 2,205,129 $ 4,352,847 $ 4,325,028 c. Research and development costs expensed as incurred $ 84,944,461 $ 79,887,723 d. Employee benefits expenses Post-employment benefits Defined contribution plans Defined benefit plans Other employee benefits Employee benefits expense summarized by function Recognized in cost of revenue Recognized in operating expenses $ $ 2,028,928 281,866 2,310,794 93,694,021 1,905,444 271,551 2,176,995 90,611,476 $ 96,004,815 $ 92,788,471 $ 57,733,597 38,271,218 $ 55,902,877 36,885,594 $ 96,004,815 $ 92,788,471 According to the Company’s Articles of Incorporation, the Company shall allocate compensation to directors and profit sharing bonus to employees of the Company not more than 0.3% and not less than 1% of annual profits during the period, respectively. The Company accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$23,570,040 thousand and NT$23,019,082 thousand for the years ended December 31, 2018 and 2017, respectively; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. The Company’s profit sharing bonus to employees and compensation to directors in the amounts of NT$23,570,040 thousand and NT$349,272 thousand in cash for 2018, respectively, profit sharing bonus to employees and compensation to directors in the amounts of NT$23,019,082 thousand and NT$368,919 thousand in cash for 2017, respectively, and profit sharing bonus to employees and compensation to directors in the amounts of NT$22,418,339 thousand and NT$376,432 thousand in cash for 2016, respectively, had been approved by the Board of Directors of the Company held on February 19, 2019, February 13, 2018 and February 14, 2017, respectively. There is no significant difference between the - 173 - aforementioned approved amounts and the amounts charged against earnings of 2018, 2017 and 2016, respectively. The information about the appropriations of the Company’s profit sharing bonus to employees and compensation to directors is available at the Market Observation Post System website. 29. CASH FLOW INFORMATION Reconciliation of liabilities arising from financing activities Balance as of January 1, 2018 Financing Cash Flow Non-cash changes Foreign Exchange Movement Other Changes (Note) Balance as of December 31, 2018 Short-term loans Guarantee deposits Bonds payable $ 63,766,850 13,629,122 116,100,000 $ 27,154,770 $ 1,504,809 (24,300,000) 1,060,720 396,617 $ - - $ (6,035,900) - 91,982,340 9,494,648 91,800,000 Total $ 193,495,972 $ 4,359,579 $ 1,457,337 $ (6,035,900) $ 193,276,988 Note: Other changes include guarantee deposits refunded to customers by offsetting related accounts receivable. 30. CAPITAL MANAGEMENT The Company requires significant amounts of capital to build and expand its production facilities and acquire additional equipment. In consideration of the industry dynamics, the Company manages its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing operations over the next 12 months. 31. FINANCIAL INSTRUMENTS a. Categories of financial instruments Financial assets FVTPL (Note 1) FVTOCI (Note 2) Hedging financial assets Amortized cost (Note 3) Financial liabilities FVTPL (Note 4) Hedging financial liabilities Amortized cost (Note 5) - 174 - December 31, 2018 $ 54,115 5,126,829 23,497 365,119,060 $ 370,323,501 $ 30,232 1,941 310,265,696 $ 310,297,869 Note 1: Financial assets mandatorily measured at FVTPL. Note 2: Including notes and accounts receivable, net and equity investments. Note 3: Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables and refundable deposits. Note 4: Held for trading. Note 5: Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable, and guarantee deposits. Financial assets FVTPL Available-for-sale financial assets (Note 6) Hedging derivative financial assets Loans and receivables (Note 7) Financial liabilities FVTPL Hedging derivative financial liabilities Amortized cost (Note 8) December 31, 2017 $ 373,351 2,808,606 7,378 362,375,885 $ 365,565,220 $ 18,764 15,562 294,856,247 $ 294,890,573 Note 6: Including financial assets carried at cost. Note 7: Including cash and cash equivalents, notes and accounts receivable (including related parties), other receivables and refundable deposits. Note 8: Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable and guarantee deposits. b. Financial risk management objectives The Company seeks to ensure sufficient cost-efficient funding readily available when needed. The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance. The plans for material treasury activities are reviewed by Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, Corporate Treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties. - 175 - c. Market risk The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity investment prices. A portion of these risks is hedged. Foreign currency risk Most of the Company’s revenues and expenditures are denominated in foreign currencies. Consequently, the Company is exposed to foreign currency risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Company uses derivative financial instruments, such as forward exchange contracts and cross currency swaps, and non-derivative financial instruments, such as foreign currency-denominated debt, to partially hedge the Company’s existing and certain forecasted currency exposure. These hedges will offset only a portion of, but do not eliminate, the financial impact from movements in foreign currency exchange rates. The Company’s sensitivity analysis of foreign currency risk mainly focuses on the foreign currency monetary items and the derivatives financial instruments at the end of the reporting period. Assuming an unfavorable 10% movement in the levels of foreign exchanges relative to the New Taiwan dollar, the net income for the years ended December 31, 2018 and 2017 would have decreased by NT$489,326 thousand and NT$849,248 thousand, respectively, and the other comprehensive income for the years ended December 31, 2018 and 2017 would have decreased by NT$315,571 thousand and NT$265,875 thousand, respectively. Interest rate risk The Company is exposed to interest rate risk primarily related to its outstanding debt and investments in fixed income securities. All of the Company’s bonds payable have fixed interest rates and are measured at amortized cost. As such, changes in interest rates would not affect the future cash flows. The Company classified its investments in fixed income securities as financial assets at amortized costs starting from 2018; as held-to-maturity financial assets in 2017. Because financial assets at amortized costs and held-to-maturity fixed income securities are measured at amortized cost, changes in interest rates would not affect the fair value. Other price risk The Company is exposed to equity price risk for 2018 and 2017 arising from financial assets at FVTOCI and available-for-sale equity investments, respectively. Assuming a hypothetical decrease of 5% in prices of the equity investments at the end of the reporting period for the years ended December 31, 2018 and 2017, the other comprehensive income would have decreased by NT$65,097 thousand and NT$120,835 thousand, respectively. d. Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily trade receivables, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets. - 176 - Business related credit risk The Company’s trade receivables are from its customers worldwide. The majority of the Company’s outstanding trade receivables are not covered by collaterals or guarantees. While the Company has procedures to monitor and manage credit risk exposure on trade receivables, there is no assurance such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during periods when economic conditions worsen. As of December 31, 2018 and 2017, the Company’s ten largest customers accounted for 76% and 74% of accounts receivable, respectively. The Company believes the concentration of credit risk is not material for the remaining accounts receivable. Financial credit risk The Company mitigates its financial credit risk by selecting counterparties with investment-grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews the limit applied to counterparties and adjusts the limit according to market conditions and the credit standing of the counterparties. The risk management of expected credit loss for financial assets at amortized cost and investments in debt instruments at FVTOCI is as follows: The Company only invests in debt instruments that are rated as investment grade or higher. The credit rating information is supplied by external rating agencies. The Company assesses whether there has been a significant increase in credit risk since initial recognition by reviewing changes in external credit ratings, financial market conditions and material information of the bond-issuers. The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows: Category Description Basis for Recognizing Expected Credit Loss Expected Credit Loss Ratio Performing Credit rating on trade date and 12 months expected credit 0% valuation date: (1) Within investment grade (2) Between BB+ and BB- loss Doubtful Credit rating on trade date and Lifetime expected credit valuation date: (1) From investment grade to non-investment grade (2) From BB+~BB- to B+~CCC- loss-not credit impaired In default Credit rating CC or below Write-off There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery Lifetime expected credit loss-credit impaired Amount is written off - - - For the year ended December 31, 2018, the Company recognizes the expected credit loss NT$0, mainly attributed to asset allocation to debt investments of higher credit rating. - 177 - e. Liquidity risk management The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalent, debt investment at FVTPL, financial assets at FVTOCI-current, and financial assets amortized at cost-current. The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest. Less Than 1 Year 2-3 Years 4-5 Years 5+ Years Total December 31, 2018 Non-derivative financial liabilities Short-term loans Accounts payable (including related parties) Payables to contractors and equipment suppliers Accrued expenses and other current liabilities Bonds payable Guarantee deposits (including those classified under accrued expenses and other current liabilities) Derivative financial instruments Forward exchange contracts Outflows Inflows December 31, 2017 Non-derivative financial liabilities Short-term loans Accounts payable (including related parties) Payables to contractors and equipment suppliers Accrued expenses and other current liabilities Bonds payable Guarantee deposits (including those classified under accrued expenses and other current liabilities) Derivative financial instruments Forward exchange contracts Outflows Inflows $ 92,039,118 $ 35,019,044 41,279,910 40,888,712 36,039,935 $ - - - $ - - - - 35,340,742 - 22,979,426 6,148,000 251,414,719 2,884,933 38,225,675 461,715 23,441,141 35,608,273 (35,681,524 ) (73,251 ) - - - - - - $ 251,341,468 $ 38,225,675 $ 23,441,141 $ - - - - - - - - - - - - - - $ 92,039,118 35,019,044 41,279,910 40,889,712 94,360,103 9,494,648 313,081,535 35,608,273 (35,681,524 ) (73,251 ) $ 313,008,284 $ 63,801,977 30,434,887 50,363,976 $ 63,801,977 $ 30,434,887 50,363,976 20,561,411 25,791,842 $ - - - $ - - - - 68,378,787 - 7,777,715 - 18,203,601 20,561,411 120,151,945 6,046,643 197,000,736 7,498,840 75,877,627 83,639 7,861,354 - 18,203,601 13,629,122 298,943,318 48,169,933 (48,530,989 ) (361,056 ) - - - - - - - - - 48,169,933 (48,530,989 ) (361,056 ) $ 196,639,680 $ 75,877,627 $ 7,861,354 $ 18,203,601 $ 298,582,262 - 178 - f. Fair value of financial instruments 1) Fair value measurements recognized in the parent company only balance sheets Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:  Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;  Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and  Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). 2) Fair value of financial instruments that are measured at fair value on a recurring basis Fair value hierarchy The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total December 31, 2018 Financial assets at FVTPL Mandatorily measured at FVTPL Forward exchange contracts Financial assets at FVTOCI Investments in equity instruments Non-publicly traded equity investments Publicly traded stocks Notes and accounts receivable, net $ - $ 54,115 $ - $ 54,115 $ - 568,150 - $ - - 3,595,069 $ 963,610 - - $ 963,610 568,150 3,595,069 $ 568,150 $ 3,595,069 $ 963,610 $ 5,126,829 Hedging financial assets Cash flow hedges Forward exchange contracts $ Financial liabilities at FVTPL Held for trading Forward exchange contracts $ Hedging financial liabilities Cash flow hedges Forward exchange contracts $ - - - $ 23,497 $ $ 30,232 $ $ 1,941 $ - - - $ 23,497 $ 30,232 $ 1,941 - 179 - Level 1 Level 2 Level 3 Total December 31, 2017 Financial assets at FVTPL Held for trading Forward exchange contracts $ - $ 373,351 $ Available-for-sale financial assets Publicly traded stocks $ 2,393,555 $ - $ Hedging derivative financial assets Cash flow hedges Forward exchange contracts $ Financial liabilities at FVTPL Held for trading Forward exchange contracts $ Hedging derivative financial liabilities Cash flow hedges - - $ 7,378 $ $ 18,764 $ - - - - $ 373,351 $ 2,393,555 $ 7,378 $ 18,764 Forward exchange contracts $ - $ 15,562 $ - $ 15,562 Reconciliation of Level 3 fair value measurements of financial assets The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI. Reconciliations for the year ended December 31, 2018 were as follows: Balance at January 1, 2018 Recognized in other comprehensive income Disposals and proceeds from return of capital of investments Balance at December 31, 2018 $ 983,590 (16,524) (3,456) $ 963,610 Valuation techniques and assumptions used in Level 2 fair value measurement The fair values of financial assets and financial liabilities are determined as follows:  Forward exchange contracts are measured using forward exchange rates and the discounted yield curves that are derived from quoted market prices.  The fair value of accounts receivables classified as at FVTOCI are determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties. - 180 - Valuation techniques and assumptions used in Level 3 fair value measurement The fair values of non-publicly traded equity investments are mainly determined by using the asset approach and market approach. To determine the fair value, the Company utilizes the asset approach and takes into account the net asset value measured at the fair value by independent parties. The market approach is used to arrive at their fair value, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered. 3) Fair value of financial instruments that are not measured at fair value Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the parent company only financial statements that are not measured at fair value approximate their fair values. Fair value hierarchy The table below sets out the fair value hierarchy for the Company’s assets and liabilities which are not required to measure at fair value: Carrying Amount December 31, 2018 Fair Value Level 1 Level 2 Level 3 Total Financial assets Financial assets at amortized costs Commercial paper Financial liabilities Financial liabilities at amortized costs $ 2,294,098 $ - $ 2,296,188 $ - $ 2,296,188 Bonds payable $ 91,800,000 $ - $ 93,171,255 $ - $ 93,171,255 Carrying Amount December 31, 2017 Fair Value Level 1 Level 2 Level 3 Total Financial liabilities at amortized costs Bonds payable $ 116,100,000 $ - $ 118,020,699 $ - $ 118,020,699 Valuation techniques and assumptions used in Level 2 fair value measurement The fair value of commercial paper is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices. The fair value of the Company’s bonds payable is determined by quoted market prices provided by third party pricing services. - 181 - 32. RELATED PARTY TRANSACTIONS The significant transactions between the Company and its related parties, other than those disclosed in other notes, are summarized as follows: a. Related party name and categories Related Party Name Related Party Categories Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries TSMC Global TSMC China TSMC Nanjing VisEra Tech TSMC North America TSMC Europe TSMC Japan TSMC Korea TSMC Solar Europe GmbH TSMC Design Technology Canada Inc. (TSMC Canada) Indirect Subsidiaries Indirect Subsidiaries TSMC Technology, Inc. (TSMC Technology) Indirect Subsidiaries WaferTech, LLC (WaferTech) Associates GUC Associates VIS Associates SSMC Associates Xintec Other related parties TSMC Education and Culture Foundation Other related parties TSMC Charity Foundation b. Net revenue Years Ended December 31 2018 2017 Item Related Party Name/Categories Net revenue from sale of goods TSMC North America Associates Other subsidiaries Other related parties $ 650,432,820 6,762,827 150,407 330 $ 650,351,537 6,941,089 487,112 133 $ 657,346,384 $ 657,779,871 Item Related Party Categories Net revenue from royalties Associates Subsidiaries $ 362,259 568 $ 482,537 264 $ 362,827 $ 482,801 - 182 - c. Purchases Related Party Categories Subsidiaries Associates d. Receivables from related parties Years Ended December 31 2018 2017 $ 34,136,678 8,809,394 $ 30,843,591 9,903,917 $ 42,946,072 $ 40,747,508 December 31, 2018 December 31, 2017 Item Related Party Name/Categories Receivables from related parties TSMC North America Associates Other subsidiaries $ 86,057,097 375,184 20,303 $ 91,329,510 777,730 34,597 $ 86,452,584 $ 92,141,837 Other receivables from related TSMC North America $ 1,035,465 parties TSMC Nanjing Associates Other subsidiaries e. Payables to related parties 89,334 64,203 45,660 $ 1,246,101 1,754,484 127,459 15,828 $ 1,234,662 $ 3,143,872 December 31, 2018 December 31, 2017 Item Related Party Name/Categories Payables to related parties TSMC China WaferTech Xintec SSMC VIS Other subsidiaries Other associates Other related parties $ 1,299,072 1,092,785 649,812 362,564 357,080 778,396 7,043 - $ 1,440,141 1,328,094 817,876 406,959 409,950 405,127 9,517 12,000 $ 4,546,782 $ 4,829,664 - 183 - f. Accrued expenses and other current liabilities December 31, 2018 December 31, 2017 Item Related Party Name/Categories Accrued expenses and other current liabilities TSMC Nanjing Other subsidiaries g. Disposal of property, plant and equipment $ 199,638 681 $ 200,319 $ $ - - - Proceeds Years Ended December 31 2018 2017 $ 2,839,622 $ 14,336,846 120,790 1,355 25,380 - $ 2,865,002 $ 14,458,991 Gains Years Ended December 31 2018 2017 $ 386,239 64,964 - $ 81,272 50,361 1,355 $ 451,203 $ 132,988 Deferred Gains from Disposal of Property, Plant and Equipment December 31, 2017 December 31, 2018 $ 234,810 152,970 $ 574,633 192,554 $ 387,780 $ 767,187 Related Party Name/Categories TSMC Nanjing Other subsidiaries Associates Related Party Name/Categories TSMC Nanjing Other subsidiaries Associates Related Party Name/Categories TSMC Nanjing Other subsidiaries - 184 - h. Others Item Related Party Name/Categories Manufacturing expenses Associates Subsidiaries $ 2,876,216 35,603 $ 2,098,141 9,318 Years Ended December 31 2018 2017 Research and development expenses Subsidiaries Associates $ 2,911,819 $ 2,107,459 $ 2,407,068 83,145 $ 2,205,906 69,841 $ 2,490,213 $ 2,275,747 Marketing expenses - commission TSMC Europe Other subsidiaries $ 463,093 402,973 $ 437,561 370,243 General and administrative expenses Other related parties Subsidiaries $ 120,756 3,426 $ 101,500 3,910 $ 866,066 $ 807,804 $ 124,182 $ 105,410 The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements. The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses. The Company deferred the disposal gain or loss derived from sales of property, plant and equipment to related parties using equity method, and then recognized such gain or loss over the depreciable lives of the disposed assets. i. Compensation of key management personnel The compensation to directors and other key management personnel for the years ended December 31, 2018 and 2017 were as follows: Short-term employee benefits Post-employment benefits Years Ended December 31 2018 2017 $ 1,906,266 3,041 $ 2,071,171 3,375 $ 1,909,307 $ 2,074,546 The compensation to directors and other key management personnel were determined by the Compensation Committee of the Company in accordance with the individual performance and the market trends. - 185 - 33. SIGNIFICANT OPERATING LEASE ARRANGEMENTS The Company’s major significant operating leases are arrangements on several parcels of land and machinery and equipment. The Company expensed the lease payments as follows: Minimum lease payments $ 3,773,364 $ 1,748,190 Future minimum lease payments under the above non-cancellable operating leases are as follows: Years Ended December 31 2018 2017 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years December 31, 2018 December 31, 2017 $ 5,510,729 4,957,770 8,253,382 $ 2,622,896 4,340,428 7,849,690 $ 18,721,881 $ 14,813,014 34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows: a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by the Company can use up to 35% of the Company’s capacity provided the Company’s outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of December 31, 2018, the R.O.C. Government did not invoke such right. b. Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. The Company’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, the Company and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, the Company and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. The Company and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but the Company alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of December 31, 2018. - 186 - c. In May 2017, Uri Cohen filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that the Company, TSMC North America and other companies infringe four U.S. patents. Cohen’s case was transferred to and consolidated with the responsive declaratory judgment case for non-infringement of Cohen’s asserted patents filed by the Company and TSMC North America in the U.S. District Court for the Northern District of California. In July 2018, all pending litigations between the parties in the U.S. District Court for the Northern District of California were dismissed. d. On September 28, 2017, the Company was contacted by the European Commission (the “Commission”), which has asked us for information and documents concerning alleged anti-competitive practices in relation to semiconductor sales. We are cooperating with the Commission to provide the requested information and documents. In light of the fact that this proceeding is still in its preliminary stage, it is premature to predict how the case will proceed, the outcome of the proceeding or its impact. e. The Company entered into long-term purchase agreements of material with multiple suppliers. The relative minimum purchase quantity and price are specified in the agreements. f. The Company entered into a long-term purchase agreement of equipment. The relative purchase quantity and price are specified in the agreement. g. The Company entered into long-term energy purchase agreements with multiple suppliers. The relative purchase period, quantity and price are specified in the agreements. h. As of December 31, 2018, the Company provided endorsement guarantees of NT$2,557,977 thousand to its subsidiary, TSMC North America, in respect of providing endorsement guarantees for office leasing contract. 35. SIGNIFICANT LOSSES FROM DISASTERS The Company experienced a computer virus outbreak on August 3, 2018, which affected a number of computer systems and fab tools, and consequently impacted wafer production in Taiwan. All the impacted tools have been recovered by August 6, 2018. The Company recognized a loss of NT$2,596,046 thousand related to this incident for the three months ended September 30, 2018, which was included in cost of revenue. 36. SIGNIFICANT SUBSEQUENT EVENTS On January 19, 2019, the Company discovered a wafer contamination issue in a fab in Taiwan caused by a batch of unqualified photoresist materials. After investigation, the Company immediately stopped using the unqualified materials. As of the date the accompanying parent company only financial statements were issued, a preliminary estimated loss of NT$6,100,000 thousand will be recognized in cost of revenue for the three months ended March 31, 2019. - 187 - 37. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows: Foreign Currencies (In Thousands) Exchange Rate (Note) Carrying Amount (In Thousands) December 31, 2018 Financial assets Monetary items USD EUR JPY Non-monetary items HKD Financial liabilities Monetary items USD EUR JPY December 31, 2017 Financial assets Monetary items USD EUR JPY Non-monetary items HKD Financial liabilities Monetary items USD EUR JPY $ 4,527,578 2,171 235,512 30.740 35.22 0.2783 $ 139,177,748 76,462 65,543 144,567 3.93 568,150 4,147,398 471,127 33,416,236 30.740 35.22 0.2783 127,491,021 16,593,099 9,299,738 5,494,191 236,279 34,012,314 29.659 35.45 0.2629 162,952,207 8,376,078 8,941,837 285,336 3.80 1,084,276 3,880,441 410,686 35,365,911 29.659 35.45 0.2629 115,090,012 14,558,807 9,297,698 Note: Exchange rate represents the number of N.T. dollars for which one foreign currency could be exchanged. Please refer to the parent company only statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the years ended December 31, 2018 and 2017, respectively. Since there were varieties of foreign currency transactions of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact. - 188 - 38. ADDITIONAL DISCLOSURES Following are the additional disclosures required by the Securities and Futures Bureau for the Company: a. Financings provided: Please see Table 1 attached; b. Endorsement/guarantee provided: Please see Table 2 attached; c. Marketable securities held (excluding investments in subsidiaries and associates): Please see Table 3 attached; d. Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 4 attached; e. Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: Please see Table 5 attached; f. Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None; g. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached; h. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 7 attached; i. Information about the derivative financial instruments transaction: Please see Notes 7 and 8; j. Names, locations, and related information of investees over which the Company exercises significant influence (excluding information on investment in mainland China): Please see Table 8 attached; k. Information on investment in mainland China 1) The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 9 attached. 2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: Please see Note 32. 39. OPERATING SEGMENTS INFORMATION The Company has provided the operating segments disclosure in the consolidated financial statements. - 189 - ) 2 d n a 1 e t o N ( ) 2 d n a 1 e t o N ( 8 1 8 , 6 8 5 5 5 , $ , 8 1 8 6 8 5 , 5 5 $ , 1 3 9 7 7 5 , 3 9 3 1 3 9 , 7 7 5 3 9 3 , - - $ - - - - $ l a t i p a c g n i t a r e p O l a t i p a c g n i t a r e p O - - 1 E L B A T g n i c n a n i F l a t o T s ’ y n a p m o C t n u o m A g n i c n a n i F s t i m L i s t i i m L g n i c n a n i F l a r e t a l l o C h c a E r o f g n i w o r r o B y n a p m o C e u l a V m e t I t b e D ) 4 e t o N ( d a B r o f e c n a w o l l A g n i c n a n i F r o f n o s a e R n o i t c a s n a r T s t n u o m A g n i c n a n F r o f i e r u t a N ) 4 e t o N ( e t a R t s e r e t n I $ m r e t - t r o h s r o f d e e n e h T % 6 9 . 1 - % 0 3 . 1 0 6 2 , 9 2 8 , 0 3 $ 0 6 5 , 5 6 0 , 6 4 $ 0 0 1 , 9 5 8 , 2 5 $ s e Y m o r f s e l b a v i e c e r r e h t O g n i j n a N C M S T a n i h C C M S T m r e t - g n o l d n a g n i c n a n i f g n i c n a n i f m r e t - t r o h s r o f d e e n e h T % 3 5 . 2 ) 0 0 0 , 9 2 1 0 0 7 , 7 2 2 , 3 ) 0 0 0 , 5 0 1 $ S U ( ) 0 0 0 , 0 0 5 , 1 $ S U ( ) 0 0 0 , 0 0 5 , 1 $ S U ( s e i t r a p d e t a l e r & ) 0 0 0 , 0 0 0 , 6 B M R ( & ) 0 0 0 , 0 0 0 , 7 $ S U ( ) 0 0 0 , 9 7 4 0 0 0 , 0 1 1 , 6 4 B M R ( $ S U ( & ) 0 0 0 , 0 0 0 , 7 ) 0 0 0 , 0 0 7 0 0 0 , 0 1 1 , 6 4 B M R ( $ S U ( s e i t r a p d e t a l e r s e Y m o r f s e l b a v i e c e r r e h t O C M S T l a b o l G C M S T 1 2 n i s e i c n e r r u c n g i e r o f ( ) s d n a s u o h T ) s d n a s u o h T ) 3 e t o N ( y l l a u t c A t n u o m A e c n a l a B g n i d n E n w a r D n i s e i c n e r r u c n g i e r o f ( m u m i x a M e h t r o f e c n a l a B n g i e r o f ( d o i r e P n i s e i c n e r r u c ) s d n a s u o h T ) 3 e t o N ( d e t a l e R y t r a P t n e m e t a t S l a i c n a n i F t n u o c c A y t r a p - r e t n u o C g n i c n a n i F y n a p m o C . o N ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T D E D I V O R P S G N I C N A N I F n a h t e r o m o n e b l l a h s r e w o r r o b e n o y n a o t e l b a d n e l t n u o m a l a t o t e h t , n o i t i d d a n I . a n i h C C M S T f o h t r o w t e n e h t f o ) % 0 1 ( t n e c r e p n e t d e e c x e t o n l l a h s d o i r e p m r e t - t r o h s a r o f g n i d n u f r o f y n a p m o c a o t g n i d n e l r o f t n u o m a l a t o t e h T . a n i h C C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s e s o p r u p g n i d n e l r o f e l b a l i a v a t n u o m a l a t o t e h T n e h W . a n i h C C M S T f o h t r o w t e n e h t f o ) % 0 4 ( t n e c r e p y t r o f d e e c x e t o n l l a h s C M S T f o y r a i d i s b u s h c u s y n a o t e l b a d n e l t n u o m a l a t o t e h t , r e v e w o H . C M S T y b , y l t c e r i d n i r o y l t c e r i d , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s e h t o t y l p p a t o n s e o d n o i t c i r t s e r e v o b a e h T . h t r o w t e n s ’ r e w o r r o b e h t f o ) % 0 3 ( t n e c r e p y t r i h t e h t , g n i o g e r o f e h t g n i d n a t s h t i w t o N . e l c i t r A s i h t f o h p a r g a r a p e v o b a e h t n i h t r o f t e s n o i t c i r t s e r e h t o t t c e j b u s e b t o n l l i w g n i d n e l e h t , n a w i a T n i d e t a c o l t o n e r a h c i h w , C M S T y b , y l t c e r i d n i r o y l t c e r i d , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s e h t o t r o , C M S T o t a n i h C C M S T y b s d e e n g n i d n u f r o f g n i d n e l a s i e r e h t . a n i h C C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s l l i t s s r e w o r r o b h c u s f o h c a e o t e l b a d n e l t n u o m a l a t o t e h t d n a s r e w o r r o b h c u s o t g n i d n e l r o f e l b a l i a v a t n u o m a e t a g e r g g a n a h t e r o m o n e b l l a h s r e w o r r o b e n o y n a o t e l b a d n e l t n u o m a l a t o t e h t , n o i t i d d a n I . l a b o l G C M S T f o h t r o w t e n e h t f o ) % 0 1 ( t n e c r e p n e t d e e c x e t o n l l a h s d o i r e p m r e t - t r o h s a r o f g n i d n u f r o f y n a p m o c a o t g n i d n e l r o f t n u o m a l a t o t e h T . l a b o l G C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s e s o p r u p g n i d n e l r o f e l b a l i a v a t n u o m a l a t o t e h T e t a g e r g g a e h t , g n i o g e r o f e h t g n i d n a t s h t i w t o N . l a b o l G C M S T f o h t r o w t e n e h t d e e c x e t o n l l a h s l l i t s t n u o m a g n i w o r r o b l a t o t r i e h t , n o i t c i r t s e r s i h t o t t c e j b u s e b t o n l l i w C M S T y b , y l t c e r i d n i r o y l t c e r i d , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s n g i e r o f r o , C M S T e l i h W . h t r o w t e n s ’ r e w o r r o b e h t f o ) % 0 3 ( t n e c r e p y t r i h t . s e r a h s g n i t o v e h t f o % 0 0 1 , y l t c e r i d n i r o y l t c e r i d , s d l o h y n a p m o C e h t h c i h w n i s e i r a i d i s b u s e r o h s f f o n e e w t e b g n i d n u f r o f s n a o l y n a p m o c - r e t n i o t y l p p a t o n l l a h s r a e y e n o g n i d e e c x e t o n g n i d n u f r o f n a o l h c a e f o m r e t e h t f o n o i t c i r t s e r e h T . l a b o l G C M S T f o h t r o w t e n e h t f o ) % 0 4 ( t n e c r e p y t r o f d e e c x e t o n l l a h s C M S T n a h t r e h t o s e i n a p m o c n a w i a T o t g n i d n e l r o f t n u o m a . s r o t c e r i D f o d r a o B e h t y b d e v o r p p a s t n u o m a e h t t n e s e r p e r e c n a l a b g n i d n e d n a d o i r e p e h t r o f e c n a l a b m u m i x a m e h T : 1 e t o N : 2 e t o N : 3 e t o N : 4 e t o N - 0 9 1 - 2 E L B A T e e t n a r a u G o t d e d i v o r P s e i r a i d i s b u S d n a l n i a M n i i a n h C e e t n a r a u G y b d e d i v o r P y r a i d i s b u S A e e t n a r a u G y b d e d i v o r P t n e r a P y n a p m o C m u m i x a M / t n e m e s r o d n E e e t n a r a u G t n u o m A e l b a w o l l A ) 2 e t o N ( s t n e m e t a t S f o o i t a R d e t a l u m u c c A / t n e m e s r o d n E f o t n u o m A / t n e m e s r o d n E t e N o t e e t n a r a u G e e t n a r a u G i l a i c n a n F t s e t a L s e i t r e p o r P r e p y t i u q E y b d e z i l a r e t a l l o C y l l a u t c A t n u o m A e c n a l a B g n i d n E n w a r D n i $ S U ( ) s d n a s u o h T n i $ S U ( ) s d n a s u o h T ) 3 e t o N ( s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( D E D I V O R P S E E T N A R A U G / S T N E M E S R O D N E 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F m u m i x a M e c n a l a B d o i r e P e h t r o f / t n e m e s r o d n E e e t n a r a u G t n u o m A n i $ S U ( h c a E o t d e d i v o r P ) s d n a s u o h T ) 3 e t o N ( d e e t n a r a u G y t r a P ) 2 d n a 1 s e t o N ( n o s t i m L i y t r a P d e e t n a r a u G f o e r u t a N p i h s n o i t a l e R e m a N r e d i v o r P e e t n a r a u G / t n e m e s r o d n E . o N o N o N o N o N s e Y s e Y 6 1 4 , 4 0 2 , 9 1 4 $ - 6 1 4 , 4 0 2 , 9 1 4 % 5 1 . 0 - - ) 0 0 0 , 0 5 1 , 1 $ S U ( ) 3 1 2 , 3 8 $ S U ( ) 3 1 2 , 3 8 $ S U ( ) 3 1 2 , 3 8 $ S U ( a c i r e m A 7 7 9 , 7 5 5 , 2 7 7 9 , 7 5 5 , 2 7 7 9 , 7 5 5 , 2 6 1 4 , 4 0 2 , 9 1 4 y r a i d i s b u S h t r o N C M S T $ - $ - $ 0 0 0 , 1 5 3 , 5 3 $ 6 1 4 , 4 0 2 , 9 1 4 $ y r a i d i s b u S l a b o l G C M S T C M S T 0 , d e n w o % 0 0 1 e r a s e r a h s g n i t o v e s o h w s e i r a i d i s b u s , r e v e w o H . y t i t n e h c u s f o h t r o w t e n e h t r o , h t r o w t e n s ’ C M S T f o ) % 0 1 ( t n e c r e p n e t d e e c x e t o n l l a h s y t i t n e l a u d i v i d n i y n a o t C M S T y b d e d i v o r p e e t n a r a u g e h t f o t n u o m a l a t o t e h T : 1 . s r o t c e r i D f o d r a o B e h t f o l a v o r p p a e h t r e t f a s n o i t c i r t s e r e v o b a e h t o t t c e j b u s t o n e r a C M S T y b , y l t c e r i d n i r o y l t c e r i d . s r o t c e r i D f o d r a o B e h t y b d e v o r p p a s t n u o m a e h t t n e s e r p e r e c n a l a b g n i d n e d n a d o i r e p e h t r o f e c n a l a b m u m i x a m e h T : 3 . h t r o w t e n s ’ C M S T f o ) % 5 2 ( t n e c r e p e v i f - y t n e w t d e e c x e t o n l l a h s e e t n a r a u g f o t n u o m a l a t o t e h T : 2 e t o N e t o N e t o N - 1 9 1 - 3 E L B A T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( D L E H S E I T I R U C E S E L B A T E K R A M 8 1 0 2 , 1 3 R E B M E C E D ) d e u n i t n o C ( 0 8 0 , 9 9 4 7 0 1 , 7 9 7 , 1 $ A N / A N / 7 3 8 , 8 9 4 1 6 2 , 5 9 7 , 1 $ 0 5 0 8 1 〃 t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F 5 2 2 , 3 9 4 0 3 4 , 8 7 6 7 1 , 9 7 3 7 4 7 , 5 4 5 5 , 4 7 7 4 , 2 0 5 1 , 8 6 5 - - - 4 0 9 , 8 $ S U 5 7 1 , 8 6 8 4 , 1 $ S U $ S U 5 5 7 , 4 4 $ S U 1 9 2 , 4 4 7 3 2 , 0 4 4 6 4 , 2 3 2 0 6 , 8 2 8 3 2 , 7 2 3 2 1 , 3 2 4 9 8 , 8 1 7 2 9 , 5 1 1 7 5 , 5 1 4 9 5 , 2 1 5 8 5 , 2 1 8 7 5 , 2 1 3 0 2 , 2 1 4 0 7 , 1 1 4 0 5 , 1 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 1 7 6 2 1 2 1 - 6 9 4 5 2 2 1 9 A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 5 2 2 , 3 9 4 0 3 4 , 8 7 6 7 1 , 9 7 3 7 4 7 , 5 4 5 5 , 4 7 7 4 , 2 - - 0 3 2 , 1 2 6 0 8 0 0 5 , 0 1 4 2 1 , 1 1 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 0 5 1 , 8 6 5 5 0 1 , 1 2 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c - - - 4 0 9 , 8 $ S U 5 7 1 , 8 6 8 4 , 1 $ S U $ S U 5 5 7 , 4 4 $ S U 1 9 2 , 4 4 7 3 2 , 0 4 4 6 4 , 2 3 2 0 6 , 8 2 8 3 2 , 7 2 3 2 1 , 3 2 4 9 8 , 8 1 7 2 9 , 5 1 1 7 5 , 5 1 4 9 5 , 2 1 5 8 5 , 2 1 8 7 5 , 2 1 3 0 2 , 2 1 4 0 7 , 1 1 4 0 5 , 1 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - 7 3 6 3 3 3 , 6 0 4 4 , 0 1 - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 9 1 - n o i t a r o p r o C l a n o i t a n r e t n I g n i r u t c a f u n a M r o t c u d n o c i m e S s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N . d t L , . o C s e s a G l a i r t s u d n I d e t i n U . d t L , . o C n a w i a T i a t o d n a H u s t E - n i h S . c n I g n i d l o H t n e m t s e v n I l a b o l G V I d n u F y g o l o n h c e T . . K W d n u F s e r u t n e V n o z i r o H l a t i p a C a i s A n o s m i r C s k c o t s d e d a r t y l c i l b u P n a w i a T , n o i t a r o p r o C C P C y n a p m o C r e w o P n a w i a T r e p a p l a i c r e m m o C C M S T . . P L , I I s t n e m t s e v n I e r u t n e V n e d l a W a n i h C . . P L , I I I s t n e m t s e v n I e r u t n e V n e d l a W a n i h C s n o i t a v o n n I a l e T . c n I e b u c M . c n I , s c i n o S e s i r p r e t n E l a t i p a C e r u t n e V n e d l a W i a h g n a h S s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N s r e n t r a P C M S T p r o C a c i r e m A f o k n a B d n o b e t a r o p r o C l a b o l G C M S T e h T / c n I p u o r G s h c a S n a m d l o G o C & e s a h C n a g r o M P J y e l n a t S n a g r o M p r o C h t l a e H S V C c n I p u o r g i t i C p r o C t s a c m o C c n I T & T A C L L a c i r e m A h t r o N e c n a n i F r e l m i a D c n I s n o i t a c i n u m m o C n o z i r e V C L P s g n i d l o H C B S H p r o C l a t i p a C T A B c n I e l p p A p b A k n a B a e d r o N A N k n a B C N P c n I e i V b b A s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 9 5 1 , 1 1 $ S U 7 3 7 , 0 1 3 5 1 , 0 1 6 9 0 , 0 1 8 0 0 , 0 1 7 4 5 , 9 8 2 2 , 9 0 7 9 , 8 1 4 8 , 8 2 5 6 , 8 1 0 6 , 8 5 9 4 , 8 9 8 0 , 8 0 5 8 , 7 6 2 7 , 7 8 1 7 , 7 7 1 7 , 7 1 2 6 , 7 7 1 5 , 7 4 8 4 , 7 9 6 4 , 7 2 6 4 , 7 2 3 4 , 7 7 8 3 , 7 7 6 3 , 7 7 2 3 , 7 0 7 2 , 7 2 5 1 , 7 0 1 1 , 7 7 9 0 , 7 1 8 0 , 7 9 3 0 , 7 5 9 9 , 6 7 0 9 , 6 7 0 9 , 6 2 0 9 , 6 3 8 7 , 6 3 0 7 , 6 4 4 6 , 6 7 3 6 , 6 9 8 5 , 6 7 7 4 , 6 4 7 4 , 6 7 6 4 , 6 3 1 2 , 6 7 8 1 , 6 1 6 1 , 6 2 5 1 , 6 9 4 0 , 6 5 4 0 , 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 9 5 1 , 1 1 $ S U 7 3 7 , 0 1 3 5 1 , 0 1 6 9 0 , 0 1 8 0 0 , 0 1 7 4 5 , 9 8 2 2 , 9 0 7 9 , 8 1 4 8 , 8 2 5 6 , 8 1 0 6 , 8 5 9 4 , 8 9 8 0 , 8 0 5 8 , 7 6 2 7 , 7 8 1 7 , 7 7 1 7 , 7 1 2 6 , 7 7 1 5 , 7 4 8 4 , 7 9 6 4 , 7 2 6 4 , 7 2 3 4 , 7 7 8 3 , 7 7 6 3 , 7 7 2 3 , 7 0 7 2 , 7 2 5 1 , 7 0 1 1 , 7 7 9 0 , 7 1 8 0 , 7 9 3 0 , 7 5 9 9 , 6 7 0 9 , 6 7 0 9 , 6 2 0 9 , 6 3 8 7 , 6 3 0 7 , 6 4 4 6 , 6 7 3 6 , 6 9 8 5 , 6 7 7 4 , 6 4 7 4 , 6 7 6 4 , 6 3 1 2 , 6 7 8 1 , 6 1 6 1 , 6 2 5 1 , 6 9 4 0 , 6 5 4 0 , 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 3 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - c n I p u o r G l a i c n a n i F i u s t i M o m o t i m u S c n I p u o r G l a i c n a n i F J F U i h s i b u s t i M c n I p u o r G l a n o i t a n r e t n I n a c i r e m A / Y N k r o Y w e N G A e s s i u S t i d e r C C L L o C t i d e r C r o t o M d r o F C L L e c n a n i F A S U C A R E V N k n a B O R M A N B A d t L s g n i d l o H t n e c n e T o C & o g r a F s l l e W d t L p u o r G e i r a u q c a M c n I s e c i v e D g o l a n A p r o C y g r e n E e k u D c n I e g n a h c x E l a t n e n i t n o c r e t n I p r o C e n e g l e C p r o C t i d e r C s s e r p x E n a c i r e m A e h T / k n a B l a n o i t a N n o t g n i t n u H A N k n a B o g r a F s l l e W V N j i p p a h c s t a a m s g n i r e i c n a n i F s n e m e i S I R e c n e d i v o r P / A N k n a B s n e z i t i C / Y N A U k n a b o b a R e v e i t a r e p o o C c n I h t l a e H l a n i d r a C c n I M M O C L A U Q I I g n i d n u F l a b o l G e f i L d r a d n a t S e c n a i l e R G A d n a l r e z t i w S g n i d n u F p u o r G S B U n o d n o L / d t L l ' t n I d n a l a e Z w e N Z N A o C e s i r p r e t n E d r a k c a P t t e l w e H p r o C t f o s o r c i M V B e c n a n i F l a n o i t a n r e t n I m o k e l e T e h c s t u e D e h T / p r o C n o l l e M k r o Y w e N f o k n a B c n I e c n a n i F v e B n I h c s u B - r e s u e h n A a c i r e m A l a t i p a C i a d n u y H c n I p u o r G l a i c n a n i F o h u z i M p r o C t i d e r C r o t o M a t o y o T p r o C T & B B k n a B t n e m p o l e v e D n a c i r f A B A n e k n a b s l e d n a H a k s n e v S p r o C s c i m a n y D l a r e n e G A S r e d n a t n a S o c n a B c n I r e w o t l l e W A G a t n a l t A / k n a B t s u r T n u S p r o C g n i k n a B c a p t s e W C L P s t e k r a M l a t i p a C P B e h T / o C n r e h t u o S c n I y g r e n E n o i n i m o D c n I s d o o F n o s y T p r o C e s a e L r i A c n I a c i r e m A x o F y r u t n e C t s 1 2 H O d n a l e v e l C A N k n a B y e K / p r o c n a B d r i h T h t f i F p r o C s e i g o l o n h c e T d e t i n U l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 6 3 0 , 6 $ S U 6 0 8 , 5 6 0 8 , 5 2 8 7 , 5 2 7 7 , 5 7 5 7 , 5 9 0 7 , 5 2 6 6 , 5 7 5 6 , 5 6 1 6 , 5 1 1 6 , 5 9 8 5 , 5 8 6 5 , 5 1 2 5 , 5 9 9 3 , 5 0 5 3 , 5 5 0 3 , 5 8 1 2 , 5 6 8 1 , 5 2 9 0 , 5 9 6 0 , 5 9 4 0 , 5 4 4 0 , 5 0 0 0 , 5 2 7 9 , 4 7 1 9 , 4 9 9 7 , 4 1 9 7 , 4 8 7 7 , 4 6 0 7 , 4 4 4 6 , 4 4 2 6 , 4 4 6 5 , 4 7 4 5 , 4 0 3 5 , 4 6 2 5 , 4 2 0 5 , 4 8 4 4 , 4 6 1 2 , 4 8 1 1 , 4 0 4 0 , 4 1 3 0 , 4 8 2 0 , 4 9 6 9 , 3 3 0 9 , 3 2 6 8 , 3 7 2 8 , 3 2 6 7 , 3 6 5 6 , 3 3 4 6 , 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 6 3 0 , 6 $ S U 6 0 8 , 5 6 0 8 , 5 2 8 7 , 5 2 7 7 , 5 7 5 7 , 5 9 0 7 , 5 2 6 6 , 5 7 5 6 , 5 6 1 6 , 5 1 1 6 , 5 9 8 5 , 5 8 6 5 , 5 1 2 5 , 5 9 9 3 , 5 0 5 3 , 5 5 0 3 , 5 8 1 2 , 5 6 8 1 , 5 2 9 0 , 5 9 6 0 , 5 9 4 0 , 5 4 4 0 , 5 0 0 0 , 5 2 7 9 , 4 7 1 9 , 4 9 9 7 , 4 1 9 7 , 4 8 7 7 , 4 6 0 7 , 4 4 4 6 , 4 4 2 6 , 4 4 6 5 , 4 7 4 5 , 4 0 3 5 , 4 6 2 5 , 4 2 0 5 , 4 8 4 4 , 4 6 1 2 , 4 8 1 1 , 4 0 4 0 , 4 1 3 0 , 4 8 2 0 , 4 9 6 9 , 3 3 0 9 , 3 2 6 8 , 3 7 2 8 , 3 2 6 7 , 3 6 5 6 , 3 3 4 6 , 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 4 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - p r o C e c n a n i F L T P / p L o C g n i s a e L k c u r T e k s n e P C L P s e c i v r e S y r u s a e r T r e s i k c n e B t t i k c e R C L L g n i t a r e p O s t c u d o r P e s i r p r e t n E c n I a c i r e m A s t e k r a M l a t i p a C P B c n I s g n i d l o H e l b a t i u q E A X A C L L p u o r G l a t i p a C n o i t a i v A C L P K U r e d n a t n a S p r o C e l c a r O C A D e c n a n i F l a t i p a C n o i t a i v A C B M S C L P s g n i d l o H p u o r G K U r e d n a t n a S p r o C y e K / n o d n o L G A S B U c n I t n o P u D w o D A S E C P B e h T / o C n o i n U n r e t s e W p r o C s g n i d l o H C T I A N e n O l a t i p a C t n e m p o l e v e D & n o i t c u r t s n o c e R r o f k n a B l a n o i t a n r e t n I g n i d n u F l a b o l G e f i L l a n o i t a N n o s k c a J o C t s u r T s r e d a r T & s r e r u t c a f u n a M d t L s g n i d l o H l a n o i t a n r e t n I o p m o S d t L y e s n r e u G g n i d n u F p u o r G e s s i u S t i d e r C c n I s g n i d l o H l a t i p a C y g r e n E a r E t x e N H O / i t a n n i c n i C A N k n a B S U t s u r T g n i d n u F s r e n r o C e v i F g n i d n u F l a b o l G e f i L k r o Y w e N C L P s y a l c r a B H O i t a n n i c n i C / k n a B d r i h T h t f i F / n o d n o L A S e l o c i r g A t i d e r C C L P p u o r G e n o f a d o V o C s s e r p x E n a c i r e m A A S s a b i r a P P N B c n I s a x e T P E A c n I n e g m A A S l e u t u M t i d e r C u d e v i t a r e d e F e u q n a B C L L o C n o i t a r e n e G n o l e x E k n a B t n e m t s e v n I n a e p o r u E e h T / a i t o c S a v o N f o k n a B A S e c n a n i F e d i u q i L r i A l a n o i t a n r e t n I n o s i d E c n I d r a T - e h c u o C n o i t a t n e m i l A d t L k n a B e i r a u q c a M e h T / k n a B n o i n i m o D - o t n o r o T c n I s k n a B t s u r T n u S T C d r o f m a t S G A S B U / o C g n i d l o H a n g i C D M / c n I l a n o i t a n r e t n I t t o i r r a M c n I s n o i t a c i n u m m o C x o C c n I m e t s y S r e d y R p r o C n a m m u r G p o r h t r o N l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 3 6 , 3 $ S U 1 2 6 , 3 4 9 5 , 3 6 8 5 , 3 9 8 4 , 3 4 8 4 , 3 0 8 4 , 3 6 2 4 , 3 6 0 4 , 3 5 8 3 , 3 2 8 3 , 3 6 6 3 , 3 2 2 2 , 3 8 1 1 , 3 2 0 1 , 3 6 8 0 , 3 5 7 0 , 3 8 5 0 , 3 9 1 0 , 3 7 0 0 , 3 5 1 9 , 2 3 4 8 , 2 3 9 7 , 2 1 4 7 , 2 7 2 7 , 2 8 1 7 , 2 4 6 6 , 2 1 1 6 , 2 5 9 5 , 2 8 6 5 , 2 2 0 5 , 2 1 0 5 , 2 4 8 4 , 2 3 8 4 , 2 2 8 4 , 2 6 1 4 , 2 7 7 3 , 2 5 4 3 , 2 6 2 3 , 2 9 1 3 , 2 6 9 2 , 2 2 5 2 , 2 9 1 2 , 2 5 6 1 , 2 4 6 1 , 2 1 0 1 , 2 4 9 0 , 2 9 3 0 , 2 4 2 0 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 3 6 , 3 $ S U 1 2 6 , 3 4 9 5 , 3 6 8 5 , 3 9 8 4 , 3 4 8 4 , 3 0 8 4 , 3 6 2 4 , 3 6 0 4 , 3 5 8 3 , 3 2 8 3 , 3 6 6 3 , 3 2 2 2 , 3 8 1 1 , 3 2 0 1 , 3 6 8 0 , 3 5 7 0 , 3 8 5 0 , 3 9 1 0 , 3 7 0 0 , 3 5 1 9 , 2 3 4 8 , 2 3 9 7 , 2 1 4 7 , 2 7 2 7 , 2 8 1 7 , 2 4 6 6 , 2 1 1 6 , 2 5 9 5 , 2 8 6 5 , 2 2 0 5 , 2 1 0 5 , 2 4 8 4 , 2 3 8 4 , 2 2 8 4 , 2 6 1 4 , 2 7 7 3 , 2 5 4 3 , 2 6 2 3 , 2 9 1 3 , 2 6 9 2 , 2 2 5 2 , 2 9 1 2 , 2 5 6 1 , 2 4 6 1 , 2 1 0 1 , 2 4 9 0 , 2 9 3 0 , 2 4 2 0 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 5 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - t n i r p S / C L L I I o C m u r t c e p S t n i r p S / C L L o C m u r t c e p S t n i r p S t s u r T h g u o r h T s s a P A s s a l C 1 - 7 0 0 2 s e n i L r i A a t l e D p r o C l a t i p a C s a t n e V / P L y t l a e R s a t n e V p r o C h c r a e s e R m a L o C y g r e n E y a w a h t a H e r i h s k r e B C L L I I I o C m u r t c e p S p r o C y e l k r e B R W o C & s r u o m e N e d t n o P u d I E o C y g o l o n h c e T C X D c n I e c r u o S i N d t L k n a B G F U M Y N / c n I m e l y X p r o C g n i k n a B i u s t i M o m o t i m u S C L L a i d e M l a s r e v i n U C B N C L P k n a B s d y o l L 2 o N p r o C s a t n i C c n I s e c n e i c S d a e l i G p r o C e c n a r u s s A o r P c n I P C H C L L e c n a n i F a c i r e m A f o p u o r G n e g a w s k l o V B A n e k n a B a d l i k s n E a k s i v a n i d n a k S p r o C s g n i d l o H r e g r e b m u l h c S y g r e n E e c r u o s r e v E p r o C t e e r t S e t a t S c n I m e h t n A k r o Y w e N / d t L k n a B a i l a r t s u A l a n o i t a N e h T / p r o C b a w h c S s e l r a h C V B e c n a n i F l a n o i t a n r e t n I l l e h S o C g n i d l o H s t p i r c S s s e r p x E D M / c n I o C & k c i m r o C c M C L L B e c n a n i F e R r e n t r a P c n I s g n i d l o H e l t s e N V N p e o r G G N I c n I e c n a i l l A s t o o B s n e e r g l a W V B s d n a l r e h t e N s g n i d l o H l a n o i t a n r e t n I z e l e d n o M k n a B t n e m p o l e v e D n a c i r e m A - r e t n I V N s e i r t s u d n I l l e s a B l l e d n o y L C L P p u o r G g n i k n a B s d y o l L P L t s u r T y t l a e R l a t i g i D l a e r t n o M f o k n a B e c r e m m o C f o k n a B l a i r e p m I n a i d a n a C k n a B t n e m p o l e v e D n a i s A C L P k n a B s y a l c r a B o C t s u r T & g n i k n a B h c n a r B a d a n a C f o k n a B l a y o R c n I r e p p e P r D g i r u e K V N l a n o i t a n r e t n I e c n a n i F l e n E p r o C l a i c n a n i F e n O l a t i p a C C L L l a t i p a C S U W M B C L L I I e c n a n i F S U r e y a B l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 3 0 0 , 2 $ S U 9 9 9 , 1 7 9 9 , 1 7 9 9 , 1 9 5 9 , 1 8 3 9 , 1 5 2 9 , 1 2 1 9 , 1 5 9 8 , 1 1 8 8 , 1 9 1 8 , 1 8 1 8 , 1 1 8 7 , 1 5 5 7 , 1 2 5 7 , 1 6 4 7 , 1 0 4 7 , 1 0 3 7 , 1 6 2 7 , 1 7 0 7 , 1 7 8 6 , 1 0 8 6 , 1 8 7 6 , 1 8 5 6 , 1 1 8 5 , 1 4 6 5 , 1 7 5 5 , 1 2 5 5 , 1 6 4 5 , 1 7 3 5 , 1 6 3 5 , 1 1 9 4 , 1 0 9 4 , 1 3 8 4 , 1 0 7 4 , 1 0 7 4 , 1 6 6 4 , 1 9 5 4 , 1 7 5 4 , 1 5 5 4 , 1 1 4 4 , 1 6 3 4 , 1 4 3 4 , 1 3 3 4 , 1 0 2 4 , 1 2 1 4 , 1 7 0 4 , 1 7 8 3 , 1 8 6 3 , 1 3 6 3 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 3 0 0 , 2 $ S U 9 9 9 , 1 7 9 9 , 1 7 9 9 , 1 9 5 9 , 1 8 3 9 , 1 5 2 9 , 1 2 1 9 , 1 5 9 8 , 1 1 8 8 , 1 9 1 8 , 1 8 1 8 , 1 1 8 7 , 1 5 5 7 , 1 2 5 7 , 1 6 4 7 , 1 0 4 7 , 1 0 3 7 , 1 6 2 7 , 1 7 0 7 , 1 7 8 6 , 1 0 8 6 , 1 8 7 6 , 1 8 5 6 , 1 1 8 5 , 1 4 6 5 , 1 7 5 5 , 1 2 5 5 , 1 6 4 5 , 1 7 3 5 , 1 6 3 5 , 1 1 9 4 , 1 0 9 4 , 1 3 8 4 , 1 0 7 4 , 1 0 7 4 , 1 6 6 4 , 1 9 5 4 , 1 7 5 4 , 1 5 5 4 , 1 1 4 4 , 1 6 3 4 , 1 4 3 4 , 1 3 3 4 , 1 0 2 4 , 1 2 1 4 , 1 7 0 4 , 1 7 8 3 , 1 8 6 3 , 1 3 6 3 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 6 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - C L L s g n i d l o H s a G y g r e n E n o i n i m o D p r o C e c i v r e S c i l b u P n i s n o c s i W C L P d e r e t r a h C d r a d n a t S p r o C l a i c n a n i F s n o i g e R c n I m o c . n o z a m A I I g n i d n u F l a b o l G e f i L l a p i c n i r P o C c i r t c e l E l a r e n e G c n I y g r e n E y k s u H c n I o C r e w o P c i r t c e l E n a c i r e m A S / A k n a B e k s n a D p r o C n o s s e K c M p r o C l a n o i t a N n l o c n i L g n i d n u F l a b o l G G A I o C r e s u e a h r e y e W c n I s e c i v r e S l a i c n a n i F n o s d i v a D - y e l r a H p r o C e c n a t p e c c A r o t o M n a s s i N g n i d n u F l a b o l G e f i L n a i d r a u G o C s a G & c i r t c e l E e c i v r e S c i l b u P c n I v r e s i F G A k n a b l l o r t n o K e h c s i h c i e r r e t s e O d t L s e n i L e p i P a d a n a C s n a r T d t L o C l a c i t u e c a m r a h P a d e k a T o C r e w o P a l e h a g n o n o M c n I s t e k r a M l a b o l G e o b C C L L t i d e r C M B I P L n o i s s i m s n a r T n r e t s a E s a x e T o C l a c i m e h C n a m t s a E C L P k n a B C B S H p r o C S B C c n I e v i t o m o t u A y l l i e R O ' p r o C l a t i p a C e r e e D n h o J k n a B s s a p m o C e h T / o C l a c i m e h C w o D A S e l a r e n e G e t e i c o S c n I s l l i M l a r e n e G P L y t l a e R e k u D P L p u o r G y t r e p o r P n o m i S c n I p u o r G h t l a e H d e t i n U c n I a s i V o C T K R k c o R t s e W c n I A S U s e l b m a r B C L L r e w o P G E S P t s u r T h g u o r h T s s a P A s s a l C 2 - 3 1 0 2 s e n i l r i A n a c i r e m A p r o C s e c i v r e S l a i c n a n i F r a l l i p r e t a C H O / c n I s e r a h s c n a B n o t g n i t n u H C L P s n o i t a c i n u m m o c e l e T h s i t i r B c n I s g n i d l o H e h c o R p r o C e m o c n I y t l a e R c n I a n t e A c n I s e c r u o s e R G O E l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 6 4 3 , 1 $ S U 1 3 3 , 1 1 2 3 , 1 5 6 2 , 1 2 6 2 , 1 9 4 2 , 1 6 2 2 , 1 4 2 2 , 1 3 0 2 , 1 0 9 1 , 1 2 8 1 , 1 7 5 1 , 1 9 4 1 , 1 9 9 0 , 1 4 9 0 , 1 6 8 0 , 1 1 6 0 , 1 7 3 0 , 1 6 2 0 , 1 6 2 0 , 1 2 2 0 , 1 0 2 0 , 1 4 1 0 , 1 4 1 0 , 1 4 1 0 , 1 3 1 0 , 1 0 1 0 , 1 8 0 0 , 1 3 0 0 , 1 1 0 0 , 1 5 9 9 4 9 9 3 9 9 2 9 9 9 8 9 8 8 9 7 8 9 6 8 9 5 8 9 5 8 9 2 8 9 9 7 9 8 7 9 3 7 9 0 7 9 8 6 9 5 6 9 4 5 9 3 5 9 1 2 9 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 6 4 3 , 1 $ S U 1 3 3 , 1 1 2 3 , 1 5 6 2 , 1 2 6 2 , 1 9 4 2 , 1 6 2 2 , 1 4 2 2 , 1 3 0 2 , 1 0 9 1 , 1 2 8 1 , 1 7 5 1 , 1 9 4 1 , 1 9 9 0 , 1 4 9 0 , 1 6 8 0 , 1 1 6 0 , 1 7 3 0 , 1 6 2 0 , 1 6 2 0 , 1 2 2 0 , 1 0 2 0 , 1 4 1 0 , 1 4 1 0 , 1 4 1 0 , 1 3 1 0 , 1 0 1 0 , 1 8 0 0 , 1 3 0 0 , 1 1 0 0 , 1 5 9 9 4 9 9 3 9 9 2 9 9 9 8 9 8 8 9 7 8 9 6 8 9 5 8 9 5 8 9 2 8 9 9 7 9 8 7 9 3 7 9 0 7 9 8 6 9 5 6 9 4 5 9 3 5 9 1 2 9 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 7 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y N k r o Y w e N / a i l a r t s u A f o k n a B h t l a e w n o m m o C 2 t s u r T p u o r G e r t n e c S / 1 t s u r T p u o r G e r t n e c S p r o C g n i k n a B & t s u r T J F U i h s i b u s t i M s g n i d l o H a c i r e m A f o p r o C y r o t a r o b a L o C n o s i d E a i n r o f i l a C n r e h t u o S a i l a r t s u A f o k n a B h t l a e w n o m m o C c n I l a n o i t a n r e t n I s i r r o M p i l i h P A S A r o n i u q E p r o C c i f i c a P n o i n U o C y g r e n E E T D e h T / c n I s o C f o p u o r G c i l b u p r e t n I B A k n a b d e w S c n I a c i r e m A f o p u o r G e c n a r u s n i e R d t L a d a n a C e c n a n i F e r o c n e l G o C n o s i d E h t l a e w n o m m o C g n i d n u F l a b o l G e n e h t A A S A k n a B B N D c n I l a i c n a n i F l a i t n e d u r P c n I s c i t s o n g a i D t s e u Q P L s g n i d l o H a c i r e m A f o t s u r T e r a c h t l a e H d t L 6 1 0 2 t n e m t s e v n I s a e s r e v O d i r G e t a t S S C S e i C & l r a S e c n a n i F S U m i c l o H c n I e d i w d l r o W v e B n I h c s u B - r e s u e h n A p r o C e c n a n i F d t L e g n u B p r o C s w e o L A N k n a b i t i C g n i d n u F l a b o l G e f i L e v i t c e t o r P ' p r o C s y d o o M I g n i d n u F l a b o l G a o c i r P c n I s a x e T y g r e t n E d t L n o i t a i v A C O B o C n o t r u b i l l a H c n I n e g o i B p u o r G m u n U p r o C o c s y S A S e g n a r O u a b f u a r e d e i W r e u f t l a t s n a t i d e r K c n I s n i l l o C l l e w k c o R p r o C X T A G C L L s a s n a k r A y g r e t n E p r o C l a i c n a n i F A N C p r o C y g r e t n E c n I y g r e n E t n i o P r e t n e C c n I n o s i d E d e t a d i l o s n o C C L L g n i d n u F e r o c n e l G C L P l a t i p a C e n i l K h t i m S o x a l G L A m a h g n i m r i B / k n a B s n o i g e R P L s r e n t r a P m a e r t s d i M n a l l e g a M d t L p u o r G s h t r o w l o o W C L L c i f i c a P - a i g r o e G l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 2 9 8 9 8 8 0 6 8 7 5 8 3 5 8 0 5 8 3 2 8 4 0 8 0 0 8 7 8 7 3 8 7 4 7 7 4 7 7 1 7 7 1 7 7 9 6 7 9 6 7 7 6 7 8 5 7 3 5 7 5 4 7 4 4 7 8 3 7 4 3 7 3 3 7 1 0 7 1 0 7 5 9 6 5 9 6 5 9 6 1 9 6 5 8 6 0 7 6 9 6 6 0 6 6 9 5 6 6 5 6 5 3 6 0 3 6 4 2 6 3 2 6 8 1 6 8 1 6 3 1 6 2 1 6 2 1 6 0 1 6 5 0 6 0 0 6 9 9 5 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 2 9 8 9 8 8 0 6 8 7 5 8 3 5 8 0 5 8 3 2 8 4 0 8 0 0 8 7 8 7 3 8 7 4 7 7 4 7 7 1 7 7 1 7 7 9 6 7 9 6 7 7 6 7 8 5 7 3 5 7 5 4 7 4 4 7 8 3 7 4 3 7 3 3 7 1 0 7 1 0 7 5 9 6 5 9 6 5 9 6 1 9 6 5 8 6 0 7 6 9 6 6 0 6 6 9 5 6 6 5 6 5 3 6 0 3 6 4 2 6 3 2 6 8 1 6 8 1 6 3 1 6 2 1 6 2 1 6 0 1 6 5 0 6 0 0 6 9 9 5 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 8 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y N k r o Y w e N / d t L p u o r G g n i k n a B d n a l a e Z w e N & a i l a r t s u A t s u r T h g u o r h T s s a P 1 - A s s a l C 1 - 0 0 0 2 s e n i l r i A l a t n e n i t n o C t s u r T h g u o r h T s s a P A s s a l C 1 - 7 0 0 2 s e n i l r i A l a t n e n i t n o C c n I p u o r G s e i t i r u c e S a w i a D C L L o C E G a s e h g u H r e k a B c n I n a c i r e m A s d l o n y e R P L y t l a e R o d a n r o V c n I n o r t x e T p r o C c i r t c e l E & s a G r e t s e h c o R o C y a w l i a R n r e h t u o S k l o f r o N c n I o c r a V l l e w l i O l a n o i t a N d t L s e n i l e p i P T P A c n I y a B e e h T / o C n o s i d E o d e l o T o C r e w o P o i h O o C r J y e l g i r W m W P L g n i t a r e p O P R E c n I s e i t i u q E e t a t s E l a e R a i r d n a x e l A c n I p u o r G l a i c n a n i F s n e z i t i C V C e d B A S o b m B o p u r G i p r o C o c d l o H A S U C B R P L y t r e p o r P y t r e b i L d t L n e i r t u N c n I d r a z z i l B n o i s i v i t c A d t L y a w t e M - p r o c n u S C L L e c n a n i F a r r e t l A P L s r e n t r a P K O E N O A p S o l o a p n a S a s e t n I C L P n o A C L L e c n a n i F y t l a i c e p S S I X A d t L 3 1 0 2 l a t i p a C c e p o n i S c n I s g n i d l o H a r u m o N C L L e c n a n i F t o v i P c e t i c n I p r o C l a i c n a n i F e f i l u n a M C L L a i d e M r e n r a W c n I e n o Z o t u A c n I t r a m l a W c n I u d i a B I g n i d n u F l a b o l G e f i L n a t i l o p o r t e M p r o C l a t i p a C t s e W e l c a n n i P c n I p u o r G y g r e n E C E W 6 6 s p i l l i h P c n I c i f i t n e i c S r e h s i F o m r e h T c n I r o g i l b O - o C s e h g u H / r e k a B C L L o C E G a s e h g u H r e k a B d t L 1 1 0 2 e c n a n i F C O O N C p r o C n i t r a M d e e h k c o L c n I A C c n I s o C n a n n e L c M & h s r a M c n I a r r e t i V V C e d B A S a s m e F a l o C - a c o C l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 9 5 7 9 5 5 9 5 4 9 5 1 9 5 9 8 5 5 8 5 4 7 5 9 6 5 8 6 5 4 6 5 3 6 5 1 5 5 5 2 5 8 1 5 0 1 5 1 0 5 8 9 4 7 9 4 6 9 4 3 9 4 0 9 4 8 7 4 7 7 4 5 7 4 3 7 4 2 7 4 9 5 4 6 5 4 4 5 4 3 5 4 1 5 4 9 4 4 6 4 4 9 2 4 4 2 4 2 1 4 2 1 4 2 1 4 6 0 4 3 0 4 0 0 4 3 9 3 8 8 3 5 8 3 9 7 3 7 7 3 4 6 3 5 5 3 4 5 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 9 5 7 9 5 5 9 5 4 9 5 1 9 5 9 8 5 5 8 5 4 7 5 9 6 5 8 6 5 4 6 5 3 6 5 1 5 5 5 2 5 8 1 5 0 1 5 1 0 5 8 9 4 7 9 4 6 9 4 3 9 4 0 9 4 8 7 4 7 7 4 5 7 4 3 7 4 2 7 4 9 5 4 6 5 4 4 5 4 3 5 4 1 5 4 9 4 4 6 4 4 9 2 4 4 2 4 2 1 4 2 1 4 2 1 4 6 0 4 3 0 4 0 0 4 3 9 3 8 8 3 5 8 3 9 7 3 7 7 3 4 6 3 5 5 3 4 5 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 9 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - C L P e c n a n i F l a n o i t a n r e t n I T A B p r o C s e i g o l o n h c e T e f i L p r o C y t l a e R o c m K i c n I s e c i v r e S l a i c n a n i F e d i w n o i t a N C L P e c n a n i F y t l a i c e p S S I X A c n I s e i t i n u m m o C y a B n o l a v A C L L s s e r g o r P y g r e n E e k u D P L s t r o s e R & s l e t o H t s o H c n I o C t h g i w D & h c r u h C c n I C B A p r o C l a i c n a n i F n o t l u F y g r e n E a r p m e S d t L k n a B B S A p r o C s r e t n e C y c n e g e R d t L k n a B t s u r T i u s t i M o m o t i m u S p r o C g n i d l o H e d a r t i r e m A D T I I g n i d n u F l a b o l G l a u t u M s s a M P L y t l a e R s d o o w h g i H p r o C X R O I o C r e p a P l a n o i t a n r e t n I C L P l a t i p a C o e g a i D c n I a c i r e m o C A p S i n E c n I e r i p S c n I p u o r G e s i r p r e t n E e c i v r e S c i l b u P C L L e F a t n a S n r e h t r o N n o t g n i l r u B A S l a n o i t a n r e t n I l a t i p a C l a t o T e h T / o C c i r t c e l E t t e s n a g a r r a N C L L s a n i l o r a C y g r e n E e k u D d t L k n a B s a e s r e v O d e t i n U p r o C n o t a E c n I p u o r G e n i l e p i P a i b m u l o C o C y a w l i a R c i f i c a P n a i d a n a C p r o C m u e l o r t e P n o h t a r a M p r o C y g r e n E o r e l a V o C r e w o P o c i x e M w e N - s a x e T C L L s g n i d l o H c i r t c e l E n o t a E P L s e i t r e p o r P r e g n a T o C r e w o P n r e h t u o S p r o C l e k r a M t s u r T h g u o r h T s s a P A s s a l C 1 - 2 1 0 2 s e n i l r i A l a t n e n i t n o C p r o C s e c r u o s e R y g r e n E t n i o P r e t n e C c n I p u o r G l a i c n a n i F a r a g a i N t s r i F p r o C e c n a n i F a d n o H n a c i r e m A c n I p u o r G l a i c n a n i F p r o C n a t S p r o C n o A t s u r T s e i t r e p o r P w e i v r i a F c a l l i d a C ' s r e h c a e T o i r a t n O c n I s g n i d l o H S U n o c a e B e n O p r o c n a B S U A N k n a B n o i n U G F U M l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 4 3 0 4 3 3 9 2 9 8 2 6 8 2 2 8 2 7 7 2 7 7 2 0 5 2 8 2 2 1 2 2 6 1 2 0 1 2 7 0 2 2 0 2 4 7 1 7 5 1 7 5 1 5 6 0 , 0 5 1 6 2 7 , 5 2 1 1 1 1 , 0 0 1 3 0 1 , 0 0 1 7 3 0 , 0 5 0 1 0 , 0 5 7 7 0 , 0 5 0 0 0 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 8 2 6 , 7 8 2 $ S U 8 0 4 , 3 8 4 2 , 2 5 1 3 , 1 4 6 1 , 8 6 $ S U $ S U $ S U $ S U 6 9 9 , 7 4 $ S U 7 6 7 , 3 3 8 1 5 , 4 2 9 5 8 , 1 3 1 7 , 1 0 8 3 , 1 5 3 7 , 8 9 3 8 4 9 , 3 3 1 1 4 3 , 1 3 1 6 3 2 , 8 2 1 0 5 0 , 2 1 1 5 1 0 , 1 5 1 4 1 , 7 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 4 3 0 4 3 3 9 2 9 8 2 6 8 2 2 8 2 7 7 2 7 7 2 0 5 2 8 2 2 1 2 2 6 1 2 0 1 2 7 0 2 2 0 2 4 7 1 7 5 1 7 5 1 1 4 9 , 9 4 1 8 4 9 , 4 2 1 7 8 9 , 9 9 0 0 9 , 9 9 4 9 9 , 9 4 4 9 9 , 9 4 6 7 9 , 9 4 6 9 9 , 9 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 8 2 6 , 7 8 2 $ S U 8 0 4 , 3 8 4 2 , 2 5 1 3 , 1 4 6 1 , 8 6 $ S U $ S U $ S U $ S U 6 9 9 , 7 4 $ S U 7 6 7 , 3 3 8 1 5 , 4 2 9 5 8 , 1 3 1 7 , 1 0 8 3 , 1 5 3 7 , 8 9 3 8 4 9 , 3 3 1 1 4 3 , 1 3 1 6 3 2 , 8 2 1 0 5 0 , 2 1 1 5 1 0 , 1 5 1 4 1 , 7 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r o t i f o r P h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F s s o L 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F 〃 〃 〃 〃 〃 〃 - 0 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - d t L a d a n a C e c n a n i F r e g r e b m u l h c S A U k n a b o b a R e v e i t a r e p o o C c n I s g n i d l o H s m e t s y S E A B e h T / c n I t o p e D e m o H C L L e c n a n i F D M E o C d n a l d i M - s l e i n a D - r e h c r A p r o C l o n e h p m A o C & y l l i L i l E e h T / c n I p u o r G s e c i v r e S l a i c n a n i F d r o f t r a H c n I s e c i v r e S n o i t a m r o f n I l a n o i t a N y t i l e d i F C L L V W M k c o R t s e W p r o C e f i L e v i t c e t o r P C L P e c y o R - s l l o R V N k n a B G N I a c i r e m A f o p r o C g n i g a k c a P c n I x a f i u q E . o C & e s a h C n a g r o M P J . p r o C g n i k n a B c a p t s e W o C & o g r a F s l l e W E S c i r t c e l E r e d i e n h c S a n i h C f o k n a B l a i c r e m m o C d n a l a i r t s u d n I a i l a r t s u A f o k n a B h t l a e w n o m m o C . c n I , p u o r G s h c a S n a m d l o G k n a B a i l a r t s u A l a n o i t a N a i t o c S a v o N f o k n a B e t o N e t a R g n i t a o l F y r u s a e r T s e t a t S d e t i n U d n o B l a n o i t a n r e t n I t n e m n r e v o G i b a h D u b A d n o B l a n o i t a n r e t n I t n e m n r e v o G r a t a Q l l i B y r u s a e r T s e t a t S d e t i n U d n o B / e t o N y r u s a e r T s e t a t S d e t i n U d n o b t n e m n r e v o G s e t a c i f i t r e C h g u o r h T s s a P d e r u t c u r t S y l i m a f i t l u M c a M e i d d e r F n o i t a i c o s s A e g a g t r o M l a n o i t a N t n e m n r e v o G p i r t S t s e r e t n I e a M e i n n a F s e i t i r u c e s d e k c a b - e g a g t r o m y c n e g A / s d n o b y c n e g A I S C M E R c a M e i d d e r F I S C M E R e a M e i n n a F n o i t a i c o s s A e g a g t r o M l a n o i t a N t n e m n r e v o G I S C M E R c a M e i d d e r F l o o P I I e a M e i n n i G e a M e i n n a F l o o P d l o G c a M e i d d e r F I S C M E R e a M e i n n a F s p i r t S c a M e i d d e r F l o o P e a M e i n n a F G A k n a B e h c s t u e D l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 1 8 0 , 6 1 $ S U 6 9 7 , 5 4 8 6 , 2 4 5 5 , 2 4 1 5 , 2 6 8 4 , 1 1 9 8 2 4 8 2 3 6 4 5 5 0 0 5 0 7 3 5 3 3 2 3 1 5 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 7 8 4 , 8 6 $ S U 4 0 6 , 3 4 4 4 1 , 2 4 5 9 4 , 7 3 2 0 7 , 6 2 2 2 1 , 8 2 9 0 , 8 9 8 9 , 7 0 3 4 , 7 4 0 3 , 7 6 4 9 , 6 3 1 3 , 6 2 1 0 , 6 7 1 9 , 5 3 0 4 , 5 8 2 3 , 5 9 7 8 , 4 1 7 8 , 4 0 1 5 , 4 7 4 0 , 4 0 6 9 , 3 2 3 9 , 3 2 0 9 , 3 9 9 8 , 3 6 8 8 , 3 2 3 7 , 3 7 4 2 , 3 8 9 9 , 2 9 8 9 , 2 7 4 9 , 2 5 4 9 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 1 8 0 , 6 1 $ S U 6 9 7 , 5 4 8 6 , 2 4 5 5 , 2 4 1 5 , 2 6 8 4 , 1 1 9 8 2 4 8 2 3 6 4 5 5 0 0 5 0 7 3 5 3 3 2 3 1 5 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 7 8 4 , 8 6 $ S U 4 0 6 , 3 4 4 4 1 , 2 4 5 9 4 , 7 3 2 0 7 , 6 2 2 2 1 , 8 2 9 0 , 8 9 8 9 , 7 0 3 4 , 7 4 0 3 , 7 6 4 9 , 6 3 1 3 , 6 2 1 0 , 6 7 1 9 , 5 3 0 4 , 5 8 2 3 , 5 9 7 8 , 4 1 7 8 , 4 0 1 5 , 4 7 4 0 , 4 0 6 9 , 3 2 3 9 , 3 2 0 9 , 3 9 9 8 , 3 6 8 8 , 3 2 3 7 , 3 7 4 2 , 3 8 9 9 , 2 9 8 9 , 2 7 4 9 , 2 5 4 9 , 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 1 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - t s u r T r e t s a M t n u o c c A t i d e r C s s e r p x E n a c i r e m A A t s u r T r e n w O r e t s a M n a l p r o o l F t i d e r C d r o F B - 8 1 0 2 t s u r T s e l b a v i e c e R o t u A i a d n u y H t s u r T e t o N n o i t u c e x E d r a C r e v o c s i D t s u r T d r a C t i d e r C A B t s u r T e c n a u s s I e s a h C C O B I - 7 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C B B D G C s e l b a v i e c e R t s u r T r e n w O r e t s a M n a s s i N D N I - 8 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C X B t s u r T n o i t u c e x E t e s s A - i t l u M e n O l a t i p a C 2 C - 2 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C s y a l c r a B - S B U B - 6 1 0 2 t s u r T r e n w O r e t s a M z n e B - s e d e c r e M 1 V E R - 6 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F t s u r T e g a g t r o M L L A T - 8 1 0 2 S M C B B C L L I I g n i d n u F e k a e p a s e h C 0 1 C - 3 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 7 P J - 7 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C C C M P J t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M . P . J t s u r T r e n w O r e t s a M t n e m p i u q E l a i c n a n i F o v l o V 0 1 C - 8 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B U 1 V E R - 5 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 2 - 7 1 0 2 t s u r T s e l b a v i e c e R e l i b o m o t u A r e m u s n o C l a i c n a n i F M G R V R I - 8 1 0 2 t s u r T p r o C s e i t i r u c e S e g a g t r o M S G t s u r T r e n w O 2 - 7 1 0 2 s e l b a v i e c e R o t u A a d n o H t s u r T e g a g t r o M 5 2 E R C C - 5 1 0 2 M M O C B - 6 1 0 2 t s u r T e s a e L o t u A n a s s i N I I p r o C s e i t i r u c e S e g a g t r o M S G 3 E C I - 7 1 0 2 t s u r T e g a r o t S d l o C 5 K N B - 7 1 0 2 K N A B 6 K N B - 7 1 0 2 K N A B I I K W - 6 1 0 2 2 R - 0 1 0 2 t s u r T s e t o N d e e t n a r a u G A U C N l o o P I e a M e i n n i G 1 R - 0 1 0 2 t s u r T s e t o N d e e t n a r a u G A U C N n o i t a i c o s s A e g a g t r o M l a n o i t a N l a r e d e F I C M E R k r a m h c n e B e a M e i n n a F p r o C e g a g t r o M n a o L e m o H l a r e d e F p r o C y a w l i a R n o t n a C - n o o l w o K c a M e i d d e r F a d a n a C c e b e u Q f o e c n i v o r P s k n a B t i d e r C m r a F l a r e d e F - A M N G C M L H F t s u r T e c n a u s s I d r a C t i d e r C k n a b i t i C s e i t i r u c e s d e k c a b - t e s s A s e t a c i f i t r e C h g u o r h T s s a P d e r u t c u r t S y l i m a f i t l u M c a M e i d d e r F l o o P d l o G n o N c a M e i d d e r F s e c A - e a M e i n n a F e a M e i n n i G l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 0 0 8 , 2 $ S U 0 5 7 , 2 2 7 6 , 2 6 9 5 , 2 6 7 5 , 2 4 5 5 , 2 2 1 5 , 2 6 8 3 , 2 6 0 3 , 2 2 5 2 , 2 7 2 1 , 2 3 8 0 , 2 1 6 0 , 2 6 4 0 , 2 4 3 0 , 2 7 1 0 , 2 0 1 0 , 2 6 0 0 , 2 9 7 9 , 1 7 7 9 , 1 4 7 9 , 1 0 6 9 , 1 3 5 9 , 1 4 4 9 , 1 0 4 9 , 1 1 3 9 , 1 8 6 8 , 1 3 6 8 , 1 1 1 8 , 1 1 0 8 , 1 9 9 7 , 1 8 8 7 , 1 3 8 7 , 1 1 7 7 , 1 6 6 7 , 1 6 5 7 , 1 2 4 7 , 1 2 2 7 , 1 7 0 7 , 1 0 7 6 , 1 3 0 6 , 1 8 9 5 , 1 1 4 5 , 1 0 4 5 , 1 8 3 5 , 1 0 0 5 , 1 7 9 4 , 1 1 8 4 , 1 5 6 4 , 1 0 6 4 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 0 0 8 , 2 $ S U 0 5 7 , 2 2 7 6 , 2 6 9 5 , 2 6 7 5 , 2 4 5 5 , 2 2 1 5 , 2 6 8 3 , 2 6 0 3 , 2 2 5 2 , 2 7 2 1 , 2 3 8 0 , 2 1 6 0 , 2 6 4 0 , 2 4 3 0 , 2 7 1 0 , 2 0 1 0 , 2 6 0 0 , 2 9 7 9 , 1 7 7 9 , 1 4 7 9 , 1 0 6 9 , 1 3 5 9 , 1 4 4 9 , 1 0 4 9 , 1 1 3 9 , 1 8 6 8 , 1 3 6 8 , 1 1 1 8 , 1 1 0 8 , 1 9 9 7 , 1 8 8 7 , 1 3 8 7 , 1 1 7 7 , 1 6 6 7 , 1 6 5 7 , 1 2 4 7 , 1 2 2 7 , 1 7 0 7 , 1 0 7 6 , 1 3 0 6 , 1 8 9 5 , 1 1 4 5 , 1 0 4 5 , 1 8 3 5 , 1 0 0 5 , 1 7 9 4 , 1 1 8 4 , 1 5 6 4 , 1 0 6 4 , 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 2 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 C - 6 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B D M P J 0 2 C L - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W B - 7 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H t s u r T r e n w O A - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T A - 7 1 0 2 t s u r T e s a e L o t u A n a s s i N 1 1 C - 8 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B U t s u r T e g a g t r o M 2 1 E R C C - 3 1 0 2 M M O C C - 7 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 4 B - 8 1 0 2 K R A M H C N E B 9 1 C - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J 0 3 C - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W 6 C - 3 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C s y a l c r a B - S B U t s u r T e g a g t r o M 2 2 E R C C - 5 1 0 2 M M O C 8 P - 7 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C t s u r T r e n w O C - 7 1 0 2 s e l b a v i e c e R o t u A a t o y o T t s u r T r e n w O B - 6 1 0 2 s e l b a v i e c e R o t u A a t o y o T B - 8 1 0 2 t s u r T e s a e L o t u A z n e B - s e d e c r e M t s u r T r e n w O C - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T 2 1 J C G - 3 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G 3 H - 8 1 0 2 t s u r T I l a t i p a C y e l n a t S n a g r o M 3 C G - 1 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G P L g n i d n u F e s a e L t e e l F z t r e H 1 3 C - 6 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 7 C - 7 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B D M P J 3 - 6 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G 1 1 B U - 6 1 0 2 t s u r T I l a t i p a C y e l n a t S n a g r o M B - 7 1 0 2 t s u r T e s a e L o t u A t i d e r C d r o F 8 C - 3 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 5 3 C G - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C 5 C - 3 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C s y a l c r a B - S B U C - 6 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H t s u r T e g a g t r o M 6 B - 8 1 0 2 K R A M H C N E B 4 - 0 1 0 2 t s u r T n a o L t n e d u t S t e n l e N 4 - 5 0 0 2 t s u r T n a o L t n e d u t S M L S t s u r T r e n w O o t u A x a M r a C t s u r T e s a e L o t u A t i d e r C d r o F t s u r T e s a e L e l c i h e V W M B 4 1 K N B - 8 1 0 2 K N A B C L L 2 V P S s l e e h W 5 P J - 7 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C C C M P J A - 7 1 0 2 t s u r T e s a e L o t u A t i d e r C d r o F C L L 0 1 o N e r u t n e d n I h t u o s d E A - 5 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 1 - 7 1 0 2 t s u r T n a o L t n e d u t S t n e i v a N 3 - 8 1 0 2 t s u r T n a o L t n e d u t S t e n l e N t s u r T e g a g t r o M 1 C P - 5 1 0 2 M M O C 1 H - 7 1 0 2 t s u r T I l a t i p a C y e l n a t S n a g r o M A - 8 1 0 2 t s u r T e s a e L o t u A t i d e r C d r o F 6 - 3 1 0 2 t s u r T n a o L t n e d u t S M L S t s u r T r e n w O r e t s a M n a l p r o o l F W M B l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e u n i t n o C ( 8 4 4 , 1 $ S U 6 4 4 , 1 3 4 4 , 1 2 3 4 , 1 6 9 3 , 1 0 9 3 , 1 8 8 3 , 1 0 6 3 , 1 9 9 2 , 1 3 5 2 , 1 1 5 2 , 1 6 4 2 , 1 3 4 2 , 1 6 9 1 , 1 9 4 0 , 1 3 4 0 , 1 6 3 0 , 1 3 2 0 , 1 9 0 0 , 1 8 0 0 , 1 6 0 0 , 1 4 0 0 , 1 2 0 0 , 1 0 0 0 , 1 6 8 9 5 8 9 9 6 9 5 4 9 1 1 9 7 9 8 3 7 8 3 5 8 1 4 8 2 2 8 6 1 8 3 0 8 9 9 7 8 9 7 2 9 7 6 8 7 6 7 7 0 7 7 3 5 7 6 1 7 6 0 7 9 9 6 8 8 6 0 7 6 9 4 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 8 4 4 , 1 $ S U 6 4 4 , 1 3 4 4 , 1 2 3 4 , 1 6 9 3 , 1 0 9 3 , 1 8 8 3 , 1 0 6 3 , 1 9 9 2 , 1 3 5 2 , 1 1 5 2 , 1 6 4 2 , 1 3 4 2 , 1 6 9 1 , 1 9 4 0 , 1 3 4 0 , 1 6 3 0 , 1 3 2 0 , 1 9 0 0 , 1 8 0 0 , 1 6 0 0 , 1 4 0 0 , 1 2 0 0 , 1 0 0 0 , 1 6 8 9 5 8 9 9 6 9 5 4 9 1 1 9 7 9 8 3 7 8 3 5 8 1 4 8 2 2 8 6 1 8 3 0 8 9 9 7 8 9 7 2 9 7 6 8 7 6 7 7 0 7 7 3 5 7 6 1 7 6 0 7 9 9 6 8 8 6 0 7 6 9 4 6 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - 3 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 2 C - 5 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 1 C - 6 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J A - 8 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H 4 - 8 1 0 2 t s u r T s e l b a v i e c e R e l i b o m o t u A r e m u s n o C l a i c n a n i F M G t s u r T r e n w O B - 7 1 0 2 s e l b a v i e c e R o t u A n a s s i N t s u r T e g a g t r o M 0 2 E R C C - 4 1 0 2 M M O C 9 1 C 4 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 1 2 C - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J t s u r T r e n w O B - 8 1 0 2 s e l b a v i e c e R o t u A n a s s i N C - 7 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H t s u r T r e n w O B - 6 1 0 2 s e l b a v i e c e R o t u A n a s s i N 4 C - 1 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B R F W 1 3 C - 5 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J 1 1 C G - 3 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M P J t s u r T r e n w O 2 - 8 1 0 2 s e l b a v i e c e R o t u A a d n o H 1 - 8 1 0 2 t s u r T r e n w O o t u A x a M r a C 9 C L - 2 1 0 2 6 C - 2 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 1 - 7 1 0 2 e l i b o m o t u A r e m u s n o C l a i c n a n i F M G 1 V E R - 7 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 3 - 7 1 0 2 t s u r T n a o L t n e d u t S t n e i v a N 1 V E R - 4 1 0 2 t i d e r C d r o F / t s u r T r e n w O o t u A t i d e r C d r o F t s u r T r e n w O 3 - 8 1 0 2 s e l b a v i e c e R o t u A a d n o H 1 C - 1 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C E R C F C A - 8 1 0 2 t s u r T e s a e L o t u A z n e B - s e d e c r e M 1 - 8 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G t s u r T r e n w O D - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T t s u r T e g a g t r o M 9 1 C L - 5 1 0 2 M M O C 1 - 3 1 0 2 t s u r T n a o L t n e d u t S M L S 3 - 8 1 0 2 t s u r T s e l b a v i e c e R o t u A y l l A 4 - 3 1 0 2 t s u r T n a o L t n e d u t S M L S 8 2 C - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W B - 6 1 0 2 t s u r T e s a e L o t u A z n e B - s e d e c r e M 1 - 8 1 0 2 t s u r T s e l b a v i e c e R o t u A z n e B - s e d e c r e M t s u r T e g a g t r o M P 0 8 2 - 7 1 0 2 e u n e v A k r a P 0 8 2 2 V E R - 5 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F 1 - 8 1 0 2 t s u r T n a o L t n e d u t S t n e i v a N 3 - 2 1 0 2 t s u r T n a o L t n e d u t S M L S t s u r T r e n w O B - 8 1 0 2 s e l b a v i e c e R o t u A a t o y o T A B - 8 1 0 2 t s u r T r e n w O r e t s a M z n e B - s e d e c r e M 2 V E R - 4 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F t s u r T e g a g t r o M 6 E R C C - 3 1 0 2 M M O C 2 - 6 0 0 2 t s u r T n a o L t n e d u t S t e n l e N 1 - 7 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G t s u r T e g a g t r o M 1 C D - 5 1 0 2 M M O C C L L g n i c n a n i F t e e l F e s i r p r e t n E 1 - 2 1 0 2 t s u r T n a o L t n e d u t S t e n l e N 1 - 8 1 0 2 t s u r T n a o L t n e d u t S a a e h P 2 - 8 1 0 2 t s u r T n a o L t n e d u t S p u o r G C M C E l a b o l G C M S T e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H 0 4 6 6 3 6 7 0 6 5 8 5 3 7 5 1 7 5 5 5 5 4 1 5 8 0 5 5 0 5 0 0 5 9 9 4 5 8 4 3 3 4 4 0 4 0 9 3 7 7 3 6 6 3 7 5 3 7 3 3 1 3 3 7 1 3 0 0 3 9 6 2 4 6 2 9 5 2 8 4 2 4 1 2 9 9 1 7 8 1 1 4 1 3 2 1 6 9 2 8 5 4 2 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U ) d e u n i t n o C ( 0 0 0 , 2 $ S U 0 0 5 , 1 $ S U 0 6 4 , 0 7 $ S U 9 3 0 , 2 $ S U 3 5 3 $ S U A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / A N / 4 4 0 2 0 4 6 6 3 6 7 0 6 5 8 5 3 7 5 1 7 5 5 5 5 4 1 5 8 0 5 5 0 5 0 0 5 9 9 4 5 8 4 3 3 4 4 0 4 0 9 3 7 7 3 6 6 3 7 5 3 7 3 3 1 3 3 7 1 3 0 0 3 9 6 2 4 6 2 9 5 2 8 4 2 4 1 2 9 9 1 7 8 1 1 4 1 3 2 1 6 9 2 8 5 4 2 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 0 0 , 2 $ S U 0 0 5 , 1 $ S U 0 6 4 , 0 7 $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 9 3 0 , 2 $ S U 3 5 3 $ S U 9 1 0 , 1 5 8 0 , 1 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c - 4 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M P J t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C e s a h C n a g r o M P J 3 - 8 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G N D L W - 2 1 0 2 6 C - 2 1 0 2 A - 5 1 0 2 t s u r T s e l b a v i e c e R o t u A i a d n u y H t s u r T e g a g t r o M D O B I - 8 1 0 2 S G B D t s u r T e g a g t r o M A V A S - 6 1 0 2 M M O C t s u r T e g a g t r o M 2 C L - 1 1 0 2 S B U B D A - 8 1 0 2 t s u r T e s a e L t e e l F I R A 8 1 C G - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G t s u r T e g a g t r o M 9 1 E R C C - 4 1 0 2 M M O C A - 6 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F t s u r T e g a g t r o M 2 D C - 6 1 0 2 D C 8 1 C - 4 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 6 1 C - 4 1 0 2 t s u r T h c n y L l l i r r e M a c i r e m A f o k n a B y e l n a t S n a g r o M 4 2 C L - 6 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W t s u r T r e n w O 4 - 7 1 0 2 s e l b a v i e c e R o t u A a d n o H A - 7 1 0 2 t s u r T n o i t a z i t i r u c e S e s a e L o t u A i a d n u y H 5 2 C - 4 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B R F W 2 - 8 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G 4 1 C - 3 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M l a i c r e m m o C B B M P J 1 S X N - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W 2 - 7 1 0 2 t s u r T g n i s a e L e l i b o m o t u A l a i c n a n i F M G 1 G S - 5 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C o g r a F s l l e W 3 2 C G - 4 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C p u o r g i t i C t s u r T r e n w O 2 - 6 1 0 2 s e l b a v i e c e R o t u A a d n o H 2 - 6 1 0 2 t s u r T e s a e L e l c i h e V W M B 1 - 8 1 0 2 t s u r T e s a e L e l c i h e V W M B B - 8 1 0 2 t s u r T e s a e L t e e l F I R A 5 C - 1 1 0 2 t s u r T e g a g t r o M l a i c r e m m o C S B R F W t s u r T r e n w O 4 - 5 1 0 2 s e l b a v i e c e R o t u A a d n o H 4 2 C G - 4 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G t s u r T e g a g t r o M 5 1 E R C C - 4 1 0 2 M M O C 2 C - 0 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G 1 C - 0 1 0 2 t s u r T s e i t i r u c e S e g a g t r o M S G 2 - 7 1 0 2 t s u r T e s a e L e l c i h e V W M B Y N k r o Y w e N / a d a n a C f o k n a B l a y o R r e p a p l a i c r e m m o C Y N / k n a B n o i n i m o D - o t n o r o T s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N . . P L I I d n u F l a t i p a C a r e v a m i r P A - 8 1 0 2 t s u r T r e n w O o t u A t i d e r C d r o F l a b o l G C M S T . c n I , s m e t s y S r e h t e A c i l e t n e S s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N I I F A T V e t o N e u l a V r i a F s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i f o e g a t n e c r e P ) % ( p i h s r e n w O e u l a V g n i y r r a C s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i s t i n U / s e r a h S ) s d n a s u o h T n I ( 8 1 0 2 , 1 3 r e b m e c e D t n u o c c A t n e m e t a t S l a i c n a n i F y n a p m o C e h t h t i w p i h s n o i t a l e R e m a N d n a e p y T s e i t i r u c e S e l b a t e k r a M e m a N y n a p m o C d l e H ) d e d u l c n o C ( 3 1 3 $ S U 0 3 7 $ S U 0 0 8 4 7 1 $ S U $ S U 3 9 3 , 2 $ S U 5 7 7 $ S U 2 - 4 1 - - - 3 1 3 $ S U 4 6 3 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 0 3 7 $ S U 3 8 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c 0 0 8 4 7 1 $ S U $ S U 3 9 3 , 2 $ S U 5 7 7 $ S U 2 5 9 , 1 7 4 1 , 4 1 5 4 7 3 2 r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 〃 e m o c n i e v i s n e h e r p m o c - - - - - - . c n I , s b a L X E N C . c n I , m u i v o n n I . c n I , x i n o c o e N s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N . p r o C g n i t h g i L s d e L d i u q i L I I I F A T V s t n e m t s e v n i y t i u q e d e d a r t y l c i l b u p - n o N d n u F h t w o r G s k c o t s d e d a r t y l c i l b u P a i t n a u q A . c n I , s e i g o l o n h c e T V 5 I I F A T V - 5 0 2 - 4 E L B A T ) 1 e t o N ( e c n a l a B g n i d n E t n u o m A ) s d n a s u o h T n I ( l a s o p s i D s t i n U / s e r a h S n o s s o L / n i a G e u l a V g n i y r r a C t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( l a s o p s i D n o i t i s i u q c A e c n a l a B g n i n n i g e B f o e r u t a N p i h s n o i t a l e R y t r a p - r e t n u o C t n e m e t a t S l a i c n a n F i t n u o c c A s e i t i r u c e S e l b a t e k r a M e m a N d n a e p y T e m a N y n a p m o C L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 3 $ T N T S A E L T A F O S E C I R P R O S T S O C T A F O D E S O P S I D D N A D E R I U Q C A S E I T I R U C E S E L B A T E K R A M ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T 7 3 8 , 8 9 4 $ 0 5 1 3 9 , 7 7 5 , 3 9 3 1 1 - 3 1 4 , 1 0 6 , 0 2 5 5 7 , 4 4 $ S U 2 0 6 , 8 2 8 3 2 , 7 2 3 2 1 , 3 2 4 9 8 , 8 1 4 9 5 , 2 1 9 5 1 , 1 1 8 2 9 , 8 6 2 7 , 7 2 6 4 , 7 4 9 5 , 3 - - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 4 1 3 , 3 8 2 $ S U ) d e u n i t n o C ( 4 6 1 , 8 6 $ S U 8 4 2 , 2 $ S U - - - - - - - - - - - - - - - - - - ) 8 6 2 , 9 7 1 , 1 ( 1 4 2 , 1 3 8 , 1 3 7 9 , 1 5 6 0 2 3 , 8 5 - ) 7 3 ( $ S U 7 2 0 , 6 $ S U 0 9 9 , 5 $ S U ) 8 ( ) 2 ( ) 4 4 ( ) 8 2 1 ( ) 6 1 ( ) 2 4 1 ( ) 2 5 1 ( ) 7 8 1 ( ) 7 2 1 ( - - - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 2 9 6 8 2 1 , 2 1 2 1 2 , 1 2 8 4 , 2 1 0 0 0 , 1 2 3 7 , 7 1 7 5 2 , 2 1 0 6 8 , 8 3 5 4 , 7 5 7 0 , 1 1 6 6 1 , 1 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 4 8 6 0 0 0 , 2 1 0 1 2 , 1 8 3 4 , 2 1 0 9 5 , 7 1 4 8 9 3 7 6 , 8 6 2 3 , 7 5 0 1 , 2 1 5 7 0 , 1 1 6 6 1 , 1 2 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 0 0 , 0 1 $ S U 0 0 0 , 0 1 $ S U ) 7 3 6 , 2 ( $ S U 3 8 8 , 3 0 4 $ S U 6 4 2 , 1 0 4 $ S U 8 4 3 4 $ S U 3 2 1 , 6 0 1 $ S U 1 7 1 , 6 0 1 $ S U $ S U 2 8 6 , 6 7 1 $ S U 5 2 7 , 6 7 1 $ S U - - - - - - - - - - - - - - - - 2 5 8 , 0 1 $ S U 3 9 2 , 1 1 2 0 1 , 8 1 9 9 2 , 9 8 6 7 , 8 1 9 1 7 , 3 1 0 9 4 , 0 1 3 7 5 , 8 5 7 5 , 0 1 4 7 4 , 3 1 6 7 5 , 3 8 6 1 , 1 2 - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 6 7 9 , 3 8 4 $ S U 4 0 5 , 4 2 1 $ S U 1 6 8 , 5 7 1 $ S U - - - - - - - - - - - - - - - - - - - - - $ - $ - $ - 7 3 8 , 8 9 4 $ 0 5 - $ - - - - - - - - 0 8 0 , 2 7 2 , 2 6 2 7 7 8 , 1 1 2 , 9 0 3 0 2 3 , 1 6 3 , 2 0 4 7 , 3 9 4 , 6 2 9 - y r a i d i s b u S y r a i d i s b u S 6 7 8 , 0 4 $ S U 1 1 9 , 9 2 8 1 0 , 0 1 7 6 8 , 6 2 6 5 2 , 1 1 6 7 , 1 4 2 0 , 7 1 2 2 7 , 2 1 1 8 1 , 6 0 5 4 , 1 3 7 0 , 1 1 - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 3 1 0 , 0 1 $ S U 9 8 6 , 2 0 2 $ S U 1 0 9 , 9 4 $ S U 7 9 9 , 2 $ S U - - - - - - - - - - - - - - - - 9 7 2 , 9 0 3 , 1 0 2 3 , 8 5 - 6 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 d e z i t r o m a t a s t e s s a l a i c n a n i F t s o c / Y N A U k n a b o b a R e v e i t a r e p o o C p r o C s e i g o l o n h c e T d e t i n U y e l n a t S n a g r o M p r o C e n e g l e C k n a B t n e m p o l e v e D n a i s A k n a B t n e m p o l e v e D . o C & e s a h C n a g r o M P J n a c i r e m A r e t n I p r o C h t l a e H S V C c n I p u o r g i t i C p r o C t s a c m o C c n I T & T A p r o C l a t i p a C T A B e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F d n o B / e t o N y r u s a e r T s e t a t S d e t i n U d n o b t n e m n r e v o G 〃 〃 g n i t a o l F y r u s a e r T s e t a t S d e t i n U l l i B y r u s a e r T s e t a t S d e t i n U e t o N e t a R e t o N ( d o h t e m y t i u q e g n i s u r o f d e t n u o c c a s t n e m t s e v n I 〃 ) 2 e u l a v r i a f t a s t e s s a l a i c n a n i F e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t y t i u q e d e d a r t y l c i l b u p - n o N s t n e m t s e v n i l a b o l G C M S T s k c o t s d e d a r t y l c i l b u P h c e t o M g n i j n a N C M S T t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F n a w i a T , n o i t a r o p r o C C P C r e p a p l a i c r e m m o C C M S T e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F p r o C a c i r e m A f o k n a B d n o b e t a r o p r o C l a b o l G C M S T ) 1 e t o N ( e c n a l a B g n i d n E t n u o m A ) s d n a s u o h T n I ( l a s o p s i D s t i n U / s e r a h S n o s s o L / n i a G e u l a V g n i y r r a C t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( t n u o m A s t i n U / s e r a h S ) s d n a s u o h T n I ( l a s o p s i D n o i t i s i u q c A e c n a l a B g n i n n i g e B f o e r u t a N p i h s n o i t a l e R y t r a p - r e t n u o C t n e m e t a t S l a i c n a n F i t n u o c c A s e i t i r u c e S e l b a t e k r a M e m a N d n a e p y T e m a N y n a p m o C 4 8 7 , 1 3 $ S U 4 2 3 , 7 2 6 4 0 , 6 2 5 1 5 , 5 2 0 3 1 , 5 2 1 6 7 , 4 2 7 0 5 , 1 2 5 5 5 , 8 1 0 9 4 , 7 1 5 1 9 , 6 1 5 8 4 , 6 1 5 4 0 , 5 1 9 5 8 , 3 1 2 7 7 , 2 1 9 0 2 , 2 1 0 9 5 , 0 1 9 2 1 , 2 0 2 0 , 2 7 5 1 , 1 - - - - - - - - $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 7 8 4 , 8 6 $ S U 4 0 6 , 3 4 5 9 4 , 7 3 $ S U $ S U 5 8 2 , 7 2 $ S U 4 0 3 , 7 $ S U - $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 3 6 ( $ S U 9 8 0 , 4 $ S U 6 2 0 , 4 $ S U ) 2 1 1 ( ) 9 6 2 , 1 ( ) 1 3 1 ( ) 6 ( ) 5 2 ( 6 8 2 ) 3 5 ( ) 6 ( ) 6 4 ( - ) 1 1 ( ) 3 2 ( 6 ) 4 3 ( - ) 0 3 ( ) 4 ( ) 7 6 ( 1 4 6 ) 0 2 5 ( 8 2 2 1 2 ) 5 6 ( ) 6 9 1 ( 0 3 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 1 6 3 , 1 2 2 9 , 9 1 7 8 3 , 1 7 1 5 7 2 5 , 4 2 7 9 1 , 2 6 1 4 0 7 8 1 1 9 3 5 2 3 , 1 - 5 5 2 9 2 4 , 1 9 7 2 , 3 1 6 4 0 , 9 4 3 7 7 , 7 4 0 5 3 , 0 4 6 7 6 , 6 4 2 8 7 , 4 2 9 9 4 , 9 2 1 1 7 , 1 1 4 4 1 , 6 8 9 4 9 , 7 6 6 8 5 , 8 9 1 4 1 0 , 3 7 1 0 8 3 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 9 4 2 , 1 3 5 6 , 8 1 6 5 2 , 1 2 9 4 3 1 8 , 4 2 1 9 1 , 2 6 1 1 5 6 2 1 1 9 3 9 7 2 , 1 - 4 4 2 6 0 4 , 1 5 8 2 , 3 1 2 1 0 , 9 4 3 4 7 , 7 4 6 4 3 , 0 4 9 0 6 , 6 4 6 4 8 , 4 2 0 0 5 , 9 2 1 9 1 , 1 1 6 5 3 , 6 8 4 8 8 , 7 6 4 1 6 , 8 9 1 8 1 8 , 2 7 1 0 1 4 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U ) 3 ( $ S U 6 4 3 , 0 2 $ S U 3 4 3 , 0 2 $ S U ) 6 1 ( ) 8 3 ( 6 ) 4 ( $ S U $ S U 2 9 1 , 3 2 8 6 2 , 4 2 $ S U $ S U 6 7 1 , 3 2 0 3 2 , 4 2 $ S U $ S U $ S U 3 3 2 , 1 1 $ S U 9 3 2 , 1 1 $ S U $ S U 7 2 2 , 5 1 $ S U 3 2 2 , 5 1 $ S U - $ S U 0 0 0 , 0 5 $ S U 0 0 0 , 0 5 $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 4 9 , 5 3 $ S U 4 3 5 , 5 5 3 0 , 9 2 9 5 0 , 7 2 8 8 6 , 5 2 9 9 9 , 6 8 1 7 8 9 , 5 4 6 1 3 , 9 1 1 5 7 , 7 1 2 6 3 , 8 1 3 3 4 , 6 1 2 7 3 , 5 1 8 6 3 , 5 1 2 0 2 , 6 2 8 6 2 , 1 6 4 9 4 , 0 1 7 0 5 , 7 4 0 6 3 , 2 4 0 8 6 , 7 4 8 4 7 , 4 2 8 9 4 , 9 2 - 1 7 2 , 3 8 1 3 9 , 5 6 6 8 5 , 8 9 1 0 1 2 , 7 5 1 0 8 3 , 0 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 5 6 8 , 0 4 $ S U 0 2 7 , 7 2 6 6 2 , 6 1 $ S U $ S U 8 7 8 , 5 2 $ S U - - $ S U $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 7 2 , 1 4 - - - 5 4 1 8 7 3 , 2 - 6 6 8 , 2 9 9 5 , 1 1 - 5 1 0 , 2 8 5 7 , 5 1 $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 8 2 3 , 8 4 $ S U 1 1 2 , 9 3 2 2 7 , 5 4 $ S U $ S U 5 0 8 , 2 1 $ S U 4 4 5 , 2 2 $ S U 0 0 0 , 0 5 $ S U - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 3 0 6 1 6 G l o o P C P N L M H D E F 5 9 4 4 M B l o o P A M N F 8 4 9 1 M B l o o P A M N F 2 5 3 2 A C l o o P A M N F 5 r Y 0 3 A B T A M N F 2 9 5 1 6 G l o o P C P N L M H D E F 4 5 6 1 6 G l o o P C P N L M H D E F 8 6 4 5 A M l o o P I I A M N G 3 9 4 4 M B l o o P A M N F e g a g t r o M l a n o i t a N t n e m n r e v o G 3 5 5 1 6 G l o o P C P N L M H D E F n o i t a i c o s s A e g a g t r o M l a n o i t a N t n e m n r e v o G 9 9 7 8 0 G l o o P C P N L M H D E F k n a B n a o L e m o H l a r e d e F s e t o N t n u o c s i D 4 9 5 0 6 G l o o P C P N L M H D E F 4 r Y 0 3 A B T I I A M N G 5 . 3 r Y 5 1 A B T A M N F 5 . 3 r Y 0 3 A B T I I A M N G n o i t a i c o s s A 2 3 3 5 A M l o o P I I A M N G 5 r Y 0 3 A B T I I A M N G 9 6 1 2 A C l o o P A M N F 3 7 7 8 0 G l o o P C P N L M H D E F 5 . 3 r Y 0 3 A B T A M N F 3 3 r Y 0 3 A B T A M N F r Y 5 1 A B T A M N F 5 . 4 r Y 0 3 A B T A M N F e u l a v r i a f t a s t e s s a l a i c n a n i F e c n a u s s I d r a C t i d e r C k n a b i t i C s e i t i r u c e s d e k c a b - t e s s A e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t t s u r T 〃 〃 〃 〃 t n u o c c A t i d e r C s s e r p x E n a c i r e m A e t o N n o i t u c e x E d r a C r e v o c s i D t s u r T e c n a u s s I e s a h C t s u r T t e s s A - i t l u M e n O l a t i p a C t s u r T n o i t u c e x E t s u r T r e t s a M t s o c d e z i t r o m a t a s t e s s a l a i c n a n i F J F U i h s i b u s t i M - o y k o T f o k n a B t c u d o r p e r u t c u r t S e m o c n i e v i s n e h e r p m o c r e h t o h g u o r h t e u l a v r i a f t a s t e s s a l a i c n a n i F 1 8 6 4 M B L o o P A M N F s e i t i r u c e s d e k c a b - e g a g t r o m y c n e g A / s d n o b y c n e g A l a b o l G C M S T ) d e d u l c n o C ( r o f t n e m y a p e r p e h T . ) A E O M ( . . C O R . - 7 0 2 - , s r i a f f A c i m o n o c E f o y r t s i n i M , n o i s s i m m o C t n e m t s e v n I e h t y b d e v o r p p a s a w t c e j o r p s i h T . l a b o l G C M S T o t n i l a t i p a c f o d n a s u o h t 0 0 0 , 0 0 0 , 2 $ S U t c e j n i o t d e v o r p p a C M S T f o s r o t c e r i D f o d r a o B e h t , 8 1 0 2 t s u g u A n i , t s o c g n i g d e h e h t r e w o l o T . 8 1 0 2 , 1 3 r e b m e c e D f o s a d n a s u o h t 0 0 0 , 0 0 1 $ S U s a w t n e m t s e v n i . t n e m t s u j d a d e t a l e r r e h t o d n a s e e t s e v n i f o s e s s o l / s t i f o r p f o e r a h s , s t n e m t s e v n i s d n o b n o t n u o c s i d / m u i m e r p f o n o i t a z i t r o m a e h t s e d u l c n i e c n a l a b g n i d n e e h T : 1 : 2 e t o N e t o N 5 E L B A T y t r a p - r e t n u o C d e t a l e R f o n o i t c a s n a r T r o i r P r e h t O s m r e T f o e s o p r u P n o i t i s i u q c A e c n e r e f e R e c i r P t n u o m A e t a D r e f s n a r T i s p h s n o i t a l e R r e n w O s p i h s n o i t a l e R f o e r u t a N y t r a p - r e t n u o C m r e T t n e m y a P n o i t c a s n a r T t n u o m A n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T e t a D n o i t c a s n a r T f o s e p y T y t r e p o r P y n a p m o C e m a N L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 3 $ T N T S A E L T A F O S T S O C T A S E I T R E P O R P E T A T S E L A E R L A U D I V I D N I F O N O I T I S I U Q C A ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) d e u n i t n o C ( e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / - - - - - - - - - . o C . g n E l a c i r t c e l E h i Y r e J y b t n e m e l t t e s y l h t n o M 1 4 3 , 1 0 3 n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 2 1 h c r a M o t 7 1 0 2 , 7 1 h c r a M Y G O L O N H C E T L A V S U R T y b t n e m e l t t e s y l h t n o M 0 0 8 , 7 0 6 . D T L , . O C n o i t c u r t s n o c e h t 8 1 0 2 , 6 t s u g u A o t 7 1 0 2 , 1 2 h c r a M b a F b a F D T L , . O C N U K H E I S H y b t n e m e l t t e s y l h t n o M 2 9 5 , 3 0 3 $ n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 5 2 y r a u n a J o t 7 1 0 2 , 0 1 h c r a M b a F C M S T d n a s s e r g o r p e c n a t p e c c a . d t L , . o C n a w i a T n o i t c u r t s n o c e h t 8 1 0 2 , 0 3 t c e j o r P h c e T h g i H W + M y b t n e m e l t t e s y l h t n o M 2 7 6 , 2 8 3 h c r a M o t 7 1 0 2 , 0 1 l i r p A b a F d n a s s e r g o r p e c n a t p e c c a L L U F N E H C y b t n e m e l t t e s y l h t n o M 3 0 4 , 4 3 3 , 1 , 4 e n u J o t 7 1 0 2 , 8 1 l i r p A b a F , . O C L A N O I T A N R E T N I . D T L n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 d n a s s e r g o r p e c n a t p e c c a l a n o i t a n r e t n I n o i t a t S e u q i n U y b t n e m e l t t e s y l h t n o M 4 7 8 , 0 0 3 l i r p A o t 7 1 0 2 , 0 2 l i r p A b a F . p r o C n o i t c u r t s n o c e h t 8 1 0 2 , 9 1 . d t L , . o C y g o l o n h c e T o n a g r O y b t n e m e l t t e s y l h t n o M 1 5 9 , 1 4 8 , 1 e n u J o t 7 1 0 2 , 1 2 l i r p A b a F I I G N R E E N G N E Y E K N A Y n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 2 1 y b t n e m e l t t e s y l h t n o M 4 7 5 , 9 5 5 , 2 y l u J o t 7 1 0 2 , 5 2 l i r p A b a F . D T L d n a s s e r g o r p e c n a t p e c c a d n a s s e r g o r p e c n a t p e c c a . D T L , . O C n o i t c u r t s n o c e h t 8 1 0 2 , 1 3 , . O C S E I G O L O N H C E T n o i t c u r t s n o c e h t 8 1 0 2 , 0 1 U Y N A U H y b t n e m e l t t e s y l h t n o M 1 0 9 , 3 1 4 y a M o t 7 1 0 2 , 2 1 y a M b a F - 8 0 2 - y t r a p - r e t n u o C d e t a l e R f o n o i t c a s n a r T r o i r P r e h t O s m r e T f o e s o p r u P n o i t i s i u q c A e c n e r e f e R e c i r P t n u o m A e t a D r e f s n a r T i s p h s n o i t a l e R r e n w O s p i h s n o i t a l e R f o e r u t a N y t r a p - r e t n u o C m r e T t n e m y a P n o i t c a s n a r T t n u o m A n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T e t a D n o i t c a s n a r T f o s e p y T y t r e p o r P y n a p m o C e m a N ) d e u n i t n o C ( e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e s o p r u p n o i t a i t o g e n e c i r p d n a e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / e n o N g n i r u t c a f u n a M n o s i r a p m o c e c i r P A N / A N / A N / A N / - - - - - - - - - - - d n a s s e r g o r p e c n a t p e c c a . c n I s r o i r e t n I h c e T r a d n a M y b t n e m e l t t e s y l h t n o M 1 3 4 , 7 4 3 , 1 2 e n u J o t 7 1 0 2 , 4 2 y l u J b a F n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 D N A S T C E T I H C R A n o i t c u r t s n o c e h t 8 1 0 2 , 9 1 , S R E N T R A P D N A N A P . 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J y b t n e m e l t t e s y l h t n o M 7 5 7 , 8 4 3 l i r p A o t 7 1 0 2 , 8 2 y l u J b a F S R E N N A L P d n a s s e r g o r p e c n a t p e c c a n o i t u b i r t s i D n a w i a T e n a r T y b t n e m e l t t e s y l h t n o M 1 2 6 , 4 7 5 , 8 y a M o t 7 1 0 2 , 8 2 y l u J b a F D E T A R O P R O C N I Y G O L O N H C E T n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 1 2 n o i t a r o p r o C n o i t c u r t s n o c e h t 8 1 0 2 n o i t c u r t s n o C A S A T y b t n e m e l t t e s y l h t n o M 4 5 4 , 2 2 4 , 1 , 1 3 y l u J o t 7 1 0 2 , 1 1 y l u J b a F I N O N U A G E M y b t n e m e l t t e s y l h t n o M 2 8 9 , 7 8 1 , 2 $ e n u J o t 7 1 0 2 , 5 2 y a M b a F C M S T d n a s s e r g o r p e c n a t p e c c a d n a s s e r g o r p e c n a t p e c c a , . p r o C l a n o i t a n r e t n I x a m u L y b t n e m e l t t e s y l h t n o M 9 6 0 , 7 3 3 e n u J o t 7 1 0 2 , 8 t s u g u A b a F d t L n o i t c u r t s n o c e h t 8 1 0 2 , 8 2 n r e t s a E r a F e d i u q i L r i A y b t n e m e l t t e s y l h t n o M 0 5 5 , 2 1 0 , 1 y l u J o t 7 1 0 2 , 6 1 t s u g u A b a F n o i t c u r t s n o c e h t d n a s s e r g o r p e c n a t p e c c a 8 1 0 2 , 1 3 , . o C g n i r e e n i g n E n i s H o a K y b t n e m e l t t e s y l h t n o M 7 4 4 , 7 1 6 y l u J o t 7 1 0 2 , 6 1 t s u g u A b a F . d t L n o i t c u r t s n o c e h t 8 1 0 2 , 1 3 , . o C l a i r t s u d n I h c e T - h i y g n a U y b t n e m e l t t e s y l h t n o M 8 3 7 , 4 2 2 , 1 o t 7 1 0 2 , 5 r e b m e t p e S b a F . d t L n o i t c u r t s n o c e h t 8 1 0 2 , 1 e n u J d n a s s e r g o r p e c n a t p e c c a . 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1 1 2 - 0 7 7 9 0 , 7 5 0 , 6 8 $ e t o N - 4 1 3 1 1 - 4 8 1 , 5 7 3 ) 2 7 0 , 9 9 2 , 1 ( ) 1 0 4 , 4 1 4 ( ) 5 8 7 , 2 9 0 , 1 ( ) 0 8 0 , 7 5 3 ( ) 4 6 5 , 2 6 3 ( ) 3 7 4 , 3 0 5 7 , 6 0 1 $ S U ( - - - - - - - - - - - - - - - d e u s s i s i e c i o v n i n e h w f o h t n o m d e u s s i s i e c i o v n i n e h w f o h t n o m d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N e h t f o d n e e h t m o r f s y a d 0 3 t e N e h t f o d n e e h t m o r f s y a d 0 3 t e N d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N d e u s s i s i e c i o v n i n e h w f o h t n o m e t a d e c i o v n i m o r f s y a d 0 3 t e N 8 9 5 4 - 0 2 8 7 4 , 2 0 1 d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N 0 2 9 7 1 , 2 4 5 e t o N o t % l a t o T 6 E L B A T r o e l b a y a P s t n u o c c A / s e t o N e l b a v i e c e R e c n a l a B g n i d n E ) s d n a s u o h T n i s e i c n e r r u C n g i e r o F ( s m r e T t n e m y a P e c i r P t i n U s m r e T t n e m y a P o t % l a t o T t n u o m A s e i c n e r r u C n g i e r o F ( ) s d n a s u o h T n i / s e s a h c r u P s e l a S s p i h s n o i t a l e R f o e r u t a N y t r a P d e t a l e R e m a N y n a p m o C n o i t c a s n a r T l a m r o n b A s l i a t e D n o i t c a s n a r T L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 1 $ T N T S A E L T A F O S E I T R A P D E T A L E R O T S E L A S R O M O R F S E S A H C R U P L A T O T ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) e t o N ( d e u s s i s i e c i o v n i n e h w f o h t n o m e h t f o d n e e h t m o r f s y a d 0 3 t e N 1 9 3 4 , 5 0 7 , 6 s e l a S e h t f o d n e e h t m o r f s y a d 0 3 t e N 9 1 3 0 0 , 9 8 0 , 8 1 s e s a h c r u P 5 2 4 , 8 3 7 , 7 s e s a h c r u P e t a i c o s s A y r a i d i s b u S y r a i d i s b u S g n i j n a N C M S T a n i h C C M S T C U G e t a d e c i o v n i m o r f s y a d 0 3 t e N 0 6 0 2 8 , 2 3 4 , 0 5 6 $ s e l a S y r a i d i s b u S a c i r e m A h t r o N C M S T C M S T 0 5 2 , 9 0 3 , 8 s e s a h c r u P y r a i d i s b u s t c e r i d n I h c e T r e f a W 9 4 7 , 2 4 1 , 5 s e s a h c r u P 5 4 6 , 6 6 6 , 3 s e s a h c r u P e t a i c o s s A e t a i c o s s A C M S S S I V - 2 1 2 - . a c i r e m A h t r o N C M S T y b s t n e i l c s t i o t d e t n a r g s m r e t t n e m y a p e h t y b d e n i m r e t e d r o e t a d e c i o v n i s ’ C M S T m o r f s y a d 0 3 s i r o n e t e h T : e t o N 5 5 5 , 4 6 6 , 1 ) 2 9 4 , 5 5 $ S U ( s e l a S s e l a S C M S T f o e t a i c o s s A C U G a c i r e m A h t r o N C M S T C M S T f o e t a i c o s s A c e t n i X h c e T a r E s i V 7 E L B A T r o f e c n a w o l l A s t b e D d a B d e v i e c e R s t n u o m A t n e u q e s b u S n i d o i r e P n e k a T n o i t c A t n u o m A s y a D r e v o n r u T ) 1 e t o N ( e u d r e v O - - - - - - - - - 6 1 4 , 2 8 1 $ 7 5 3 , 7 5 3 , 9 3 $ - - - - ) 0 3 5 , 1 2 1 4 8 , 1 6 6 D S U ( - ) 0 0 4 , 1 3 2 0 , 3 4 D S U ( - - - - - - - - - - - - 6 1 4 , 2 8 1 2 4 8 , 8 2 8 , 2 $ ) 0 3 5 , 1 2 1 4 8 , 1 6 6 D S U ( - ) 0 0 4 , 1 3 2 0 , 3 4 D S U ( 0 5 1 3 2 e t o N 7 2 3 5 0 1 2 e t o N 9 3 4 4 e c n a l a B g n i d n E s e i c n e r r u C n g i e r o F ( s p i h s n o i t a l e R f o e r u t a N y t r a P d e t a l e R e m a N y n a p m o C ) s d n a s u o h T n i 4 8 1 , 5 7 3 2 6 5 , 2 9 0 , 7 8 $ 2 7 0 , 9 9 2 , 1 7 4 0 , 6 8 9 , 0 3 ) 9 9 6 , 0 2 9 , 6 B M R ( ) 9 4 1 , 0 9 2 B M R ( y n a p m o c t n e r a P C M S T y n a p m o c t n e r a p e m a s e h T g n i j n a N C M S T a n i h C C M S T y r a i d i s b u S e t a i c o s s A C U G a c i r e m A h t r o N C M S T C M S T 5 8 7 , 2 9 0 , 1 ) 9 4 5 , 5 3 D S U ( e h t f o t n e r a p e t a m i t l u e h T y n a p m o C C M S T h c e T r e f a W 9 3 0 , 4 1 6 ) 6 4 1 , 7 3 1 ) 3 0 1 , 7 7 4 3 , 8 1 2 ) 3 7 4 , 3 0 5 7 , 6 0 1 8 7 4 , 2 0 1 B M R ( D S U ( D S U ( e h t f o t n e r a p e t a m i t l u e h T y n a p m o C C M S T y g o l o n h c e T C M S T C M S T f o e t a i c o s s A C U G a c i r e m A h t r o N C M S T C M S T f o e t a i c o s s A c e t n i X h c e T a r E s i V y n a p m o c t n e r a P C M S T g n i j n a N C M S T . s y a d r e v o n r u t f o n o i t a l u c l a c e h t r o f e l b a c i l p p a t o n s i h c i h w , s e l b a v i e c e r r e h t o f o d e t s i s n o c y l i r a m i r p s i e c n a l a b g n i d n e e h T : 2 . s e i t r a p d e t a l e r m o r f s e l b a v i e c e r r e h t o s e d u l c x e s y a d r e v o n r u t f o n o i t a l u c l a c e h T : 1 e t o N e t o N L A T I P A C N I - D I A P E H T F O % 0 2 R O N O I L L I M 0 0 1 $ T N T S A E L T A O T G N I T N U O M A S E I T R A P D E T A L E R M O R F S E L B A V I E C E R ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D - 3 1 2 - s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T 8 E L B A T e t o N f o e r a h S s e s s o L / s t i f o r P e e t s e v n I f o ) 1 e t o N ( n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T 8 1 0 2 , 1 3 r e b m e c e D f o s a e c n a l a B t n u o m A t n e m t s e v n I l a n i g i r O e m o c n I t e N e h t f o ) s e s s o L ( e e t s e v n I n g i e r o F ( g n i y r r a C e u l a V n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T f o e g a t n e c r e P p i h s r e n w O n I ( s e r a h S ) s d n a s u o h T , 1 3 r e b m e c e D , 1 3 r e b m e c e D 7 1 0 2 n g i e r o F ( 8 1 0 2 n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T s t c u d o r P d n a s e s s e n i s u B n i a M n o i t a c o L y n a p m o C e e t s e v n I y n a p m o C r o t s e v n I ) A N I H C D N A L N I A M N I T N E M T S E V N I N O N O I T A M R O F N I G N I D U L C X E ( E C N E U L F N I T N A C I F I N G I S S E S I C R E X E Y N A P M O C E H T H C I H W R E V O S E E T S E V N I F O N O I T A M R O F N I D E T A L E R D N A , S N O I T A C O L , S E M A N ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T y r a i d i s b u S 8 4 9 , 7 1 1 8 4 9 , 7 1 1 3 9 3 , 9 6 2 , 4 0 0 1 0 0 0 , 1 1 8 1 7 , 3 3 3 8 1 7 , 3 3 3 d n a s t i u c r i c d e t a r g e t n i f o g n i t e k r a m d n a g n i l l e S g n i t s e t d n a g n i g a k c a p , g n i l l e s , g n i r u t c a f u n a m , g n i n g i s e d , g n i p o l e v e d , g n i h c r a e s e r n i d n a r e t l i f r o l o c f o . A S U . , a i n r o f i l a C , e s o J n a S a c i r e m A h t r o N C M S T e t a i c o s s A 7 0 2 , 0 2 5 , 1 8 6 0 , 9 1 9 , 3 5 1 8 , 2 7 7 , 5 y r a i d i s b u S 1 2 4 , 8 5 3 3 8 2 , 2 1 4 9 2 9 , 1 3 5 , 4 9 3 7 8 4 1 3 8 2 0 , 0 2 1 , 5 8 2 0 , 0 2 1 , 5 s t i u c r i c d e t a r g e t n i f o g n i l l e s d n a g n i r u t c a f u n a M e r o p a g n i S s e c i v e d r o t c u d n o c i m e s r e h t o d n a 0 2 1 , 3 5 2 1 7 1 , 5 0 0 , 5 1 7 1 , 5 0 0 , 5 s t r a p e r a p s c i n o r t c e l e g n i r u t c a f u n a m n i d e g a g n E n a w i a T , u h C - n i s H h c e T a r E s i V C M S S s t i u c r i c d e t a r g e t n i f o n g i s e d d e d i a - r e t u p m o c s k s a m f o e c i v r e s n g i s e d d n a g n i r u t c a f u n a m e h t d n a s e c i v e d r o t c u d n o c i m e s r e h t o d n a e t a i c o s s A 4 9 3 , 1 4 7 , 1 9 6 2 , 6 6 1 , 6 6 2 1 , 6 0 0 , 9 8 2 3 2 2 , 4 6 4 7 7 6 , 0 8 1 , 0 1 7 7 6 , 0 8 1 , 0 1 d n a g n i t s e t , g n i g a k c a p , g n i l l e s , g n i r u t c a f u n a M n a w i a T , u h C - n i s H S I V e h t n i s s e n i s u b d e t a l e r r e h t o d n a , e r u t c a f u n a m t n e m t s e v n i r e h t o d n a y r t s u d n i r o t c u d n o c i m e s s e i t i v i t c a y r a i d i s b u S 0 7 3 , 9 9 4 , 2 0 7 3 , 9 9 4 , 2 4 9 0 , 9 3 3 , 2 5 y r a i d i s b u S 2 0 6 , 1 7 2 , 9 $ 2 0 6 , 1 7 2 , 9 $ 1 3 9 , 7 7 5 , 3 9 3 $ 0 0 1 0 0 1 8 6 2 , 8 8 9 0 3 1 , 6 5 4 , 1 3 0 3 1 , 6 5 4 , 1 3 ) 3 e t o N ( , n g i s e d e h t n i d e v l o v n i s e i n a p m o c n i g n i t s e v n I s d n a l s I n i g r i V h s i t i r B , a l o t r o T s r e n t r a P C M S T 1 1 9 2 2 , 0 9 8 , 2 9 2 $ 9 0 3 , 2 6 1 , 5 5 3 $ s e i t i v i t c a t n e m t s e v n I s d n a l s I n i g r i V h s i t i r B , a l o t r o T l a b o l G C M S T C M S T ) d e u n i t n o C ( e t a i c o s s A ) 9 8 7 , 7 4 5 ( ) 1 5 9 , 1 5 3 , 1 ( 7 0 6 , 4 6 7 , 1 e t a i c o s s A 4 7 2 , 4 4 3 6 5 1 , 8 8 9 3 2 4 , 9 9 2 , 1 y r a i d i s b u S 7 9 6 , 1 4 y r a i d i s b u S ) 8 4 3 , 3 ( y r a i d i s b u S 5 3 0 , 4 y r a i d i s b u S ) 2 5 6 , 3 ( y r a i d i s b u S 0 7 1 , 2 y r a i d i s b u S ) 1 2 ( ) 6 1 4 , 3 ( 7 9 6 , 1 4 5 3 0 , 4 ) 6 2 7 , 3 ( 0 7 1 , 2 ) 1 2 ( 8 2 8 , 5 4 4 0 6 6 , 4 9 1 6 3 1 , 1 4 1 8 5 7 , 8 2 1 6 6 9 , 0 4 ) 6 0 1 , 0 2 ( y r a i d i s b u S 2 e t o N 6 9 1 , 3 6 8 , 1 7 6 7 , 0 4 2 , 9 2 ) 3 0 8 , 1 6 $ S U ( ) 9 2 2 , 1 5 9 $ S U ( y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N y r a i d i s b u S 2 e t o N e t a i c o s s A 2 e t o N - ) 0 1 6 , 1 6 6 8 , 7 4 4 2 2 , 2 3 ) 9 6 0 , 1 ) ) 1 3 2 ( ) 1 8 7 , 6 ( ) 7 9 5 ( ) ) 0 2 ( ) ) 2 7 ( ) 6 4 8 , 1 ( 8 0 0 , 7 8 5 $ S U ( ) 6 9 0 , 9 1 $ S U ( 3 2 4 , 5 0 2 $ S U ( ) 3 8 6 , 6 $ S U ( $ S U ( - ) 7 1 0 1 5 $ S U ( 2 8 7 , 7 9 $ S U ( ) 1 8 1 , 3 $ S U ( 7 6 8 , 2 2 $ S U ( ) 4 4 7 $ S U ( 1 4 5 3 0 0 1 8 9 0 0 1 8 9 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 7 9 7 9 0 0 1 9 3 - - 6 - 1 0 8 - - 0 0 3 , 2 3 8 5 9 9 2 , 9 - 3 9 6 , 4 - ) 2 8 2 , 4 1 2 0 7 , 0 7 ) 0 0 3 , 2 7 0 6 , 4 1 ) 5 7 4 7 0 2 , 6 6 ) 4 5 1 , 2 ) 3 9 5 , 1 0 8 9 , 8 4 9 4 7 , 5 1 5 8 8 , 8 1 3 , 1 0 6 7 , 3 8 1 3 8 , 2 1 4 6 5 6 , 3 1 6 6 2 , 5 2 9 4 7 , 5 1 4 4 2 , 8 0 3 , 1 0 6 7 , 3 8 0 0 8 , 8 7 2 6 5 6 , 3 1 6 6 2 , 5 2 s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I s e i t i v i t c a g n i t r o p p u s d n a e c i v r e s r e m o t s u C s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I g n i d i v o r p d n a s t c u d o r p d e t a l e r r a l o s f o g n i l l e S s e i t i v i t c a g n i t r o p p u s d n a e c i v r e s r e m o t s u C e c i v r e s r e m o t s u c 9 2 0 , 9 3 4 9 2 0 , 9 3 4 $ S U ( ) 2 8 2 , 4 1 $ S U ( 2 0 7 , 0 7 $ S U ( ) 0 0 3 , 2 $ S U ( s e i t i v i t c a t r o p p u s g n i r e e n i g n E y r t s u d n i r o t c u d n o c i m e s s e i t i v i t c a t r o p p u s g n i r e e n i g n E $ S U ( ) 5 7 4 $ S U ( 7 0 6 , 4 1 s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I - s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I 2 8 2 , 1 1 1 7 1 3 , 8 8 9 , 1 7 1 3 , 8 8 9 , 1 l e v e l r e f a w d n a g n i g a k c a p e z i s p i h c l e v e l r e f a W n a w i a T , n a u y o a T 8 8 6 , 6 4 8 6 5 , 6 8 3 8 6 5 , 6 8 3 g n i t s e t , g n i r u t c a f u n a m , g n i p o l e v e d , g n i h c r a e s e R n a w i a T , u h C - n i s H e c i v r e s n o i t c e n n o c r e t n i n o i t a v i s s a p t s o p s e c i v e d r o t c u d n o c i m e s r e h t o s t i u c r i c d e t a r g e t n i f o g n i t e k r a m d n a s e i t i v i t c a g n i t r o p p u s d n a e c i v r e s r e m o t s u C s d n a l r e h t e N e h t , m a d r e t s m A n a p a J , a m a h o k o Y s d n a l s I n a m y a C s d n a l s I n a m y a C a e r o K , l u o e S y n a m r e G , g r u b m a H H b m G e p o r u E r a l o S C M S T e p o r u E C M S T n a p a J C M S T I I I F A T V a e r o K C M S T I I F A T V c e t n i X C U G a d a n a C , o i r a t n O s d n a l s I n a m y a C s d n a l s I n a m y a C a d a n a C C M S T I I F D S I F D S I 9 9 4 , 2 4 0 , 8 1 9 9 4 , 2 4 0 , 8 1 ) 9 3 9 , 6 8 5 $ S U ( ) 9 3 9 , 6 8 5 $ S U ( e h t n i s s e n i s u b d e t a l e r g n i r u t c a f u n a m e h t n i d e v l o v n i s e i n a p m o c n i g n i t s e v n I . A S U . . A S U . , e r a w a l e D y g o l o n h c e T C M S T , e r a w a l e D t n e m p o l e v e D C M S T s r e n t r a P C M S T - 4 1 2 - $ S U ( ) 3 9 5 , 1 $ S U ( d n a , s l a i r e t a m c i n o r t c e l e f o g n i l i a t e r d n a D I F R f o g n i t s e t d n a g n i p o l e v e d , g n i h c r a e s e r $ S U ( ) 4 5 1 , 2 $ S U ( 0 8 9 , 8 4 g n i l a s e l o h w , s t r a p c i n o r t c e l e f o g n i r u t c a f u n a M n a w i a T , i e p i a T w e N k a P - l a u t u M 7 0 2 , 6 6 s e i n a p m o c y g o l o n h c e t p u - t r a t s w e n n i g n i t s e v n I s d n a l s I n a m y a C d n u F h t w o r G I I I F A T V e t o N f o e r a h S s e s s o L / s t i f o r P e e t s e v n I f o ) 1 e t o N ( n g i e r o F ( n i s e i c n e r r u C ) s d n a s u o h T e m o c n I t e N e h t f o ) s e s s o L ( e e t s e v n I n g i e r o F ( g n i y r r a C e u l a V n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T 8 1 0 2 , 1 3 r e b m e c e D f o s a e c n a l a B t n u o m A t n e m t s e v n I l a n i g i r O f o e g a t n e c r e P p i h s r e n w O n I ( s e r a h S ) s d n a s u o h T , 1 3 r e b m e c e D , 1 3 r e b m e c e D 7 1 0 2 n g i e r o F ( 8 1 0 2 n g i e r o F ( n i s e i c n e r r u C n i s e i c n e r r u C ) s d n a s u o h T ) s d n a s u o h T s t c u d o r P d n a s e s s e n i s u B n i a M n o i t a c o L y n a p m o C e e t s e v n I y n a p m o C r o t s e v n I ) d e d u l c n o C ( r o f t n e m y a p e r p e h T . ) A E O M ( . . C O R . , s r i a f f A c i m o n o c E f o y r t s i n i M , n o i s s i m m o C t n e m t s e v n I e h t y b d e v o r p p a s a w t c e j o r p s i h T . l a b o l G C M S T o t n i l a t i p a c f o d n a s u o h t 0 0 0 , 0 0 0 , 2 $ S U t c e j n i o t d e v o r p p a C M S T f o s r o t c e r i D f o d r a o B e h t , 8 1 0 2 t s u g u A n i , t s o c g n i g d e h e h t r e w o l o T . 8 1 0 2 , 1 3 r e b m e c e D f o s a d n a s u o h t 0 0 0 , 0 0 1 $ S U s a w t n e m t s e v n i . y n a p m o c r o t s e v n i e h t f o s e s s o l / s t i f o r p f o e r a h s e h t n i d e d u l c n i y d a e r l a s i t n u o m a h c u s s a n i e r e h d e t c e l f e r t o n s i y n a p m o c e e t s e v n i e h t f o s e s s o l / s t i f o r p f o e r a h s e h T . s n o i t c a s n a r t y n a p m o c r e t n i n o s e s s o l / s t i f o r p s s o r g d e z i l a e r n u f o t c e f f e e h t s e d u l c n i e e t s e v n i f o s e s s o l / s t i f o r p f o e r a h s e h T : 1 : 2 e t o N e t o N : 3 e t o N - 5 1 2 - y r a i d i s b u S 2 e t o N 5 5 5 , 3 7 4 , 1 $ 3 6 2 , 5 9 5 , 4 $ ) 8 1 9 , 8 4 $ S U ( ) 8 8 4 , 9 4 1 $ S U ( 0 0 1 7 3 6 , 3 9 2 - $ - $ d e t a r g e t n i f o g n i t s e t d n a g n i l l e s , g n i r u t c a f u n a M s e c i v e d r o t c u d n o c i m e s r e h t o d n a s t i u c r i c . A S U . , n o t g n i h s a W h c e T r e f a W t n e m p o l e v e D C M S T 9 E L B A T d e t a l u m u c c A d r a w n I f o e c n a t t i m e R f o s a s g n i n r a E , 1 3 r e b m e c e D 8 1 0 2 g n i y r r a C t n u o m A f o s a , 1 3 r e b m e c e D 8 1 0 2 s e s s o L / s t i f o r P i p h s r e n w O e e t s e v n I y n a p m o C f o e r a h S f o e g a t n e c r e P e h t f o ) s e s s o L ( e m o c n I t e N d e t a l u m u c c A f o w o l f t u O m o r f t n e m t s e v n I f o s a n a w i a T , 1 3 r e b m e c e D n i $ S U ( 8 1 0 2 ) s d n a s u o h T s w o l F t n e m t s e v n I w o l f n I w o l f t u O n i $ S U ( ) s d n a s u o h T d e t a l u m u c c A f o w o l f t u O m o r f t n e m t s e v n I f o s a n a w i a T 8 1 0 2 , 1 y r a u n a J n i $ S U ( ) s d n a s u o h T f o d o h t e M t n e m t s e v n I f o t n u o m A l a t o T l a t i p a C n i - d i a P n i B M R ( ) s d n a s u o h T d n a s e s s e n i s u B n i a M s t c u d o r P y n a p m o C e e t s e v n I - - $ 1 1 9 , 6 6 4 , 5 5 $ 8 7 5 , 4 6 3 , 5 $ % 0 0 1 2 6 4 , 7 9 3 , 5 $ 7 6 6 , 9 3 9 , 8 1 $ - $ - $ 7 6 6 , 9 3 9 , 8 1 $ 1 e t o N ) 2 e t o N ( ) 0 0 0 , 6 9 5 $ S U ( ) 0 0 0 , 6 9 5 $ S U ( 7 6 6 , 9 3 9 , 8 1 $ ) 0 8 0 , 2 0 5 , 4 B M R ( n g i s e d d e d i a - r e t u p m o c s t i u c r i c d e t a r g e t n i f o d n a g n i t s e t r e h t o d n a s e c i v e d r o t c u d n o c i m e s , g n i l l e s , g n i r u t c a f u n a M a n i h C C M S T 3 1 4 , 1 0 6 , 0 2 ) 2 e t o N ( ) 7 2 9 , 0 0 2 , 8 ( % 0 0 1 ) 9 8 9 , 5 1 2 , 8 ( ) 0 0 0 , 0 0 0 , 1 $ S U ( 2 1 4 , 1 2 5 , 0 3 - ) 0 0 0 , 0 8 $ S U ( ) 0 0 0 , 0 2 9 $ S U ( ) 9 1 1 , 0 5 6 , 6 B M R ( d n a g n i t s e t 0 2 3 , 1 6 3 , 2 2 9 0 , 0 6 1 , 8 2 1 e t o N 2 1 4 , 1 2 5 , 0 3 , g n i l l e s , g n i r u t c a f u n a M g n i j n a N C M S T y b d e z i r o h t u A s t n u o m A t n e m t s e v n I a n i h C d n a l n i a M n i t n e m t s e v n I d e t a l u m u c c A n g i s e d d e d i a - r e t u p m o c s t i u c r i c d e t a r g e t n i f o r e h t o d n a s e c i v e d r o t c u d n o c i m e s ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n i s t n u o m A ( A N I H C D N A L N I A M N I T N E M T S E V N I N O N O I T A M R O F N I 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y R O F s e e t s e v n I d n a d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T t n e m t s e v n I n o t i i m L r e p p U A E O M , n o i s s i m m o C t n e m t s e v n I 3 e t o N ) s d n a s u o h T n i $ S U ( 7 6 6 , 2 1 4 , 9 1 1 $ ) 0 0 0 , 6 9 5 , 3 $ S U ( 8 1 0 2 , r e b m e c e D f o s a ) s d n a s u o h T n i $ S U ( 9 7 0 , 1 6 4 , 9 4 $ ) 0 0 0 , 6 9 5 , 1 $ S U ( f o e l p i c n i r P " o t t n a u s r u p a n i h C d n a l n i a m n i t n e m t s e v n i n o t i m i l r e p p u e h t , 6 1 0 2 t s u g u A n o A E O M , u a e r u B t n e m p o l e v e D l a i r t s u d n I y b d e u s s i s r e t r a u q d a e h g n i t a r e p o r o f d e i f i l a u q g n i e b f o e t a c i f i t r e c e h t d e n i a t b o s a h y n a p m o C e h t s A : 3 . e l b a c i l p p a t o n s i " a n i h C d n a l n i a M n i n o i t a r e p o o C l a c i n h c e T r o t n e m t s e v n i . g n i j n a N C M S T n i s d n a s u o h t 0 0 0 , 0 0 0 , 1 $ S U d n a a n i h C C M S T n i d n a s u o h t 0 0 0 , 6 9 5 $ S U d e t s e v n i y l t c e r i d C M S T : 1 . s t n e m e t a t s l a i c n a n i f d e t i d u a e h t n o d e s a b d e z i n g o c e r s a w t n u o m A : 2 e t o N e t o N e t o N - 6 1 2 - THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS ITEM STATEMENT INDEX MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY STATEMENT OF CASH AND CASH EQUIVALENTS STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE, NET STATEMENT OF RECEIVABLES FROM RELATED PARTIES STATEMENT OF INVENTORIES STATEMENT OF OTHER CURRENT ASSETS STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION AND ACCUMULATED IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT STATEMENT OF CHANGES IN INTANGIBLE ASSETS STATEMENT OF GUARANTEE DEPOSITS STATEMENT OF DEFERRED INCOME TAX ASSETS / LIABILITIES STATEMENT OF SHORT-TERM LOANS STATEMENT OF ACCOUNTS PAYABLES STATEMENT OF PAYABLES TO RELATED PARTIES STATEMENT OF PAYABLES TO CONTRACTORS AND EQUIPMENT SUPPLIERS STATEMENT OF PROVISIONS STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES STATEMENT OF BONDS PAYABLE MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS STATEMENT OF NET REVENUE STATEMENT OF COST OF REVENUE STATEMENT OF OPERATING EXPENSES STATEMENT OF FINANCE COSTS STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION 1 2 3 4 Note 14 5 Note 12 Note 12 Note 13 Note 19 Note 26 6 7 8 9 Note 16 10 11 12 13 14 Note 24 15 - 217 - STATEMENT 1 Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars, Unless Specified Otherwise) Item Description Amount Cash Petty cash Cash in banks Checking accounts and demand deposits Foreign currency deposits Time deposits Cash equivalents $ 280 17,433,341 12,070,686 208,969,550 Including US$389,998 thousand @30.74, JPY199,382 thousand @0.2783, EUR729 thousand @35.22 and RMB220 thousand @4.4773 From 2018.06.05 to 2019.10.31, interest rates at 0.17%-3.00%, including NT$208,317,862 thousand and US$21,200 thousand @30.74 Repurchase agreements collateralized by Expired by 2019.01.02, interest rates at 1,229,600 corporate bonds Commercial paper Total 3.7% Expired by 2019.02.20, interest rates at 499,068 0.76% $ 240,202,525 - 218 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Client Name Client A Client B Client C Client D Others (Note 1) Less: Allowance for doubtful accounts Total STATEMENT 2 Amount $ 9,700,035 3,912,500 3,681,950 3,276,349 16,121,687 36,692,521 (7,132) $ 36,685,389 Note 1: The amount of individual client included in others does not exceed 5% of the account balance. Note 2: The accounts receivable past due over one year amounted to NT$4 thousand for which the Company has recognized appropriate allowance for doubtful accounts. - 219 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF RECEIVABLES FROM RELATED PARTIES DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Client Name TSMC North America Others (Note) Total STATEMENT 3 Amount $ 86,057,097 395,487 $ 86,452,584 Note: The amount of individual client included in others does not exceed 5% of the account balance. - 220 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF INVENTORIES DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) STATEMENT 4 Item Finished goods Work in process Raw materials Supplies and spare parts Total Amount Cost Net Realizable Value $ 10,920,351 $ 24,537,764 70,405,998 187,819,293 14,110,534 14,140,627 2,651,277 2,758,051 $ 98,088,160 $ 229,255,735 - 221 - 5 T N E M E T A T S r o e u l a V t e k r a M e u l a V s t e s s A t e N e s a e r c n I ) e s a e r c e D ( e h t g n i s U n i 8 1 0 2 , 1 3 r e b m e c e D , e c n a l a B d o h t e M y t i u q E t n e m t s e v n I n i e s a e r c e D t n e m t s e v n I n i s n o i t i d d A 8 1 0 2 , 1 y r a u n a J , e c n a l a B l a r e t a l l o C t n u o m A l a t o T e c i r P t i n U ) $ T N ( t n u o m A % ) s d n a s u o h T n I ( s e r a h S l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N 2 3 8 , 8 5 5 , 5 5 9 2 , 8 7 4 , 4 3 9 3 , 9 6 2 , 4 5 8 5 , 3 8 7 , 3 9 9 6 , 7 1 6 , 9 8 2 8 , 5 4 4 6 3 1 , 1 4 1 6 6 9 , 0 4 ) 6 0 1 , 0 2 ( ) 1 ) 1 e t o N ( 4 3 e t o N ( 6 0 2 8 5 8 , 4 3 4 , 2 5 8 9 2 , 1 2 6 , 7 2 1 3 9 , 7 7 5 , 3 9 3 $ ) 1 e t o N ( 5 . 9 5 $ 6 2 1 , 6 0 0 , 9 5 1 8 , 2 7 7 , 5 9 2 9 , 1 3 5 , 4 3 9 3 , 9 6 2 , 4 7 0 6 , 4 6 7 , 1 3 2 4 , 9 9 2 , 1 8 2 8 , 5 4 4 6 3 1 , 1 4 1 6 6 9 , 0 4 ) 6 0 1 , 0 2 ( 4 9 0 , 9 3 3 , 2 5 1 3 9 , 7 7 5 , 3 9 3 $ 5 1 7 , 9 4 9 , 1 0 5 2 4 1 , 9 6 1 , 3 7 4 1 9 4 , 1 7 1 2 1 5 , 2 2 1 8 1 8 , 6 8 5 , 5 5 0 8 4 , 7 3 8 , 0 2 1 0 3 , 8 1 7 , 6 7 0 6 6 , 4 9 1 8 5 7 , 8 2 1 1 1 9 , 6 6 4 , 5 5 3 1 4 , 1 0 6 , 0 2 2 4 7 , 1 9 3 , 6 7 0 0 1 0 0 1 8 2 9 3 7 8 0 0 1 1 4 5 3 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 8 9 8 9 1 1 4 1 3 8 6 2 , 8 8 9 3 2 2 , 4 6 4 0 0 0 , 1 1 0 2 1 , 3 5 2 2 8 2 , 1 1 1 8 8 6 , 6 4 - 6 1 0 8 - - - - t n u o m A ) 2 e t o N ( 7 0 8 , 4 5 6 , 2 4 7 9 , 3 9 0 , 2 2 $ 5 7 1 , 5 9 2 8 7 , 7 3 4 ) 3 3 2 , 5 3 1 ( 0 9 3 , 8 6 2 ) 3 9 4 , 7 2 5 ( ) 1 7 7 ( 1 1 1 4 0 5 , 8 3 0 9 6 , 1 1 6 5 7 , 1 2 9 6 , 8 3 9 , 4 2 5 6 4 , 2 5 ) 4 4 7 , 7 5 ( 6 2 0 , 6 0 4 , 4 ) 7 4 6 , 3 5 2 , 8 ( ) 0 0 9 , 2 5 8 , 3 ( s e r a h S s e r a h S s e r a h S t n u o m A ) s d n a s u o h T n I ( t n u o m A ) s d n a s u o h T n I ( t n u o m A ) s d n a s u o h T n I ( s e e t s e v n I - - - - - - - - - - - - - - - ) 1 4 6 , 0 1 ( ) 1 3 0 , 4 3 1 ( ) 2 7 6 , 4 4 1 ( $ - - - - - - - - - - - - - - - - 0 8 0 , 2 7 2 , 2 6 $ 2 7 7 8 , 1 1 2 , 9 0 3 $ 9 - - - - - - - - - - - 0 8 0 , 2 7 2 , 2 6 - - - 0 2 3 , 1 6 3 , 2 0 2 3 , 1 6 3 , 2 - - - - - - - - - - - - - - - 4 4 3 , 8 6 5 , 8 0 4 6 , 7 7 6 , 5 2 6 1 , 7 6 6 , 4 3 0 0 , 1 0 0 , 4 0 0 1 , 2 9 2 , 2 4 9 1 , 0 0 3 , 1 7 8 2 , 4 8 6 , 9 4 4 2 3 , 7 0 4 6 4 4 , 9 2 1 0 1 2 , 9 3 ) 7 1 2 , 0 2 ( 0 7 3 , 8 5 9 , 5 8 3 6 3 8 , 2 5 1 3 3 5 , 0 2 3 5 8 8 , 0 6 0 , 1 5 0 4 7 , 3 9 4 , 6 2 4 9 9 , 7 2 0 , 8 7 4 1 3 8 6 2 , 8 8 9 3 2 2 , 4 6 4 0 0 0 , 1 1 0 2 1 , 3 5 2 2 8 2 , 1 1 1 8 8 6 , 6 4 - 6 1 0 8 - - - - a c i r e m A h t r o N C M S T h c e T a r E s i V s r e n t r a P C M S T l a b o l G C M S T s k c o t S C M S S S I V e p o r u E C M S T n a p a J C M S T a e r o K C M S T c e t n i X C U G H b m G e p o r u E r a l o S C M S T l a t o t b u S g n i j n a N C M S T a n i h C C M S T l a t o t b u S I I I F A T V I I F A T V l a t i p a C 6 1 0 , 8 6 6 , 8 7 5 $ 4 8 8 , 0 6 5 , 9 4 5 $ 2 9 7 , 5 8 0 , 1 2 $ ) 2 7 6 , 4 4 1 ( $ 0 0 4 , 3 3 6 , 4 6 $ 4 6 3 , 6 8 9 , 3 6 4 $ . c t e , s e t a i c o s s a d n a s e i r a i d i s b u s m o r f d e v i e c e r s d n e d i v i d h s a c , s e t a i c o s s a d n a s e i r a i d i s b u s f o e m o c n i e v i s n e h e r p m o c r e h t o f o e r a h s , s e t a i c o s s a d n a s e i r a i d i s b u s f o s s o l r o t i f o r p f o e r a h s g n i d u l c n i y l n i a M . 8 1 0 2 , 8 2 r e b m e c e D f o s a e g n a h c x E k c o t S n a w i a T e h t f o e c i r p g n i s o l c y b r o 8 1 0 2 , 8 2 r e b m e c e D f o s a t e k r a M s e i t i r u c e S i a T e r G f o e c i r p g n i s o l c y b d e t a l u c l a c s i e c i r p t i n u e h T l a t o T : 1 : 2 e t o N e t o N D O H T E M Y T I U Q E G N I S U R O F D E T N U O C C A S T N E M T S E V N I N I S E G N A H C F O T N E M E T A T S ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n I ( 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F - 2 2 2 - d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T - - - - - - - - - - - - - - - - l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N 0 0 0 , 0 0 6 0 0 0 , 0 0 6 0 0 0 , 0 0 3 0 0 0 , 0 0 0 , 8 0 0 0 , 0 0 0 , 2 1 0 0 0 , 0 0 4 0 0 0 , 0 0 2 0 0 0 , 0 6 1 0 0 0 , 0 0 5 0 0 0 , 0 1 1 0 0 0 , 0 0 1 0 0 0 , 0 0 1 0 0 0 , 5 7 0 0 0 , 5 6 0 0 0 , 4 8 4 $ S U $ S U $ W T $ S U $ W T $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U $ S U 0 0 0 , 0 0 5 , 1 $ S U 2 2 . 3 - 9 8 . 2 4 9 . 2 - 5 7 . 2 0 0 . 3 - 5 7 . 2 9 9 . 2 - 4 9 . 2 9 7 . 2 0 1 . 0 0 8 . 2 0 0 . 3 - 8 9 . 2 5 6 . 2 2 8 . 2 1 0 . 0 8 6 . 2 9 9 . 2 0 0 . 3 2 8 . 2 3 5 . 2 6 T N E M E T A T S k r a m e R l a r e t a l l o C s t n e m t i m m o C n a o L ) % ( s e t a R t s e r e t n I d o i r e P t c a r t n o C f o e g n a R d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n I ( S N A O L M R E T - T R O H S F O T N E M E T A T S 8 1 0 2 , 1 3 R E B M E C E D 8 0 . 1 0 . 9 1 0 2 - 6 0 . 1 1 . 8 1 0 2 8 1 . 1 0 . 9 1 0 2 - 1 1 . 0 1 . 8 1 0 2 1 1 . 1 0 . 9 1 0 2 - 5 0 . 1 1 . 8 1 0 2 5 2 . 1 0 . 9 1 0 2 - 6 2 . 1 1 . 8 1 0 2 9 0 . 1 0 . 9 1 0 2 - 8 0 . 1 1 . 8 1 0 2 0 3 . 1 0 . 9 1 0 2 - 7 2 . 2 1 . 8 1 0 2 7 0 . 1 0 . 9 1 0 2 - 5 0 . 1 1 . 8 1 0 2 9 0 . 1 0 . 9 1 0 2 - 7 0 . 1 1 . 8 1 0 2 4 0 . 1 0 . 9 1 0 2 - 3 0 . 2 1 . 8 1 0 2 6 1 . 1 0 . 9 1 0 2 - 4 1 . 1 1 . 8 1 0 2 5 2 . 1 0 . 9 1 0 2 - 7 2 . 2 1 . 8 1 0 2 4 0 . 1 0 . 9 1 0 2 - 5 0 . 0 1 . 8 1 0 2 9 0 . 1 0 . 9 1 0 2 - 9 0 . 1 1 . 8 1 0 2 9 0 . 1 0 . 9 1 0 2 - 9 0 . 1 1 . 8 1 0 2 6 1 . 1 0 . 9 1 0 2 - 4 1 . 1 1 . 8 1 0 2 , e c n a l a B r a e Y f o d n E 0 0 2 , 8 1 2 , 3 1 0 0 2 , 4 4 1 , 0 1 0 0 1 , 1 3 8 , 5 1 $ 0 0 6 , 4 1 9 , 8 0 0 8 , 2 6 7 , 6 0 4 6 , 5 0 7 , 5 0 0 2 , 3 3 5 , 5 0 0 4 , 8 1 9 , 4 0 0 5 , 2 4 8 , 3 0 0 4 , 1 8 3 , 3 0 0 6 , 7 1 8 , 2 0 0 6 , 6 6 7 , 2 0 0 8 , 1 5 1 , 2 0 0 0 , 7 3 5 , 1 0 0 6 , 9 2 2 , 1 0 4 6 , 4 5 7 , 8 8 - 3 2 2 - 9 1 . 4 0 . 9 1 0 2 - 8 2 . 2 1 . 8 1 0 2 0 0 7 , 7 2 2 , 3 0 4 3 , 2 8 9 , 1 9 $ . d t L , J F U i h s i b u s t i M - o y k o T f O k n a B e h T e p y T I B C e l o c i r g A t i d é r C a c i r e m A f O k n a B k n a b a g e M s n a o l d e r u c e s n U . . A N k n a B e s a h C n a g r o M P J k n a B l a i c r e m m o C t s r i F S B D C B S H k n a B l a i c r e m m o C n o b u f i e p i a T k n a B n o i t c u r t s n o C a n i h C n a w i a T k n a b i t i C n a w i a T s a b i r a P P N B B D i e p i a T k n a b i t i C n a w i a T C B S H l a t o t b u S l a b o l G C M S T s e i t r a p d e t a l e R l a t o T Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF ACCOUNTS PAYABLES DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Vendor Name Vendor A Others (Note) Total STATEMENT 7 Amount $ 1,625,875 28,846,417 $ 30,472,292 Note: The amount of individual vendor in others does not exceed 5% of the account balance. - 224 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF PAYABLES TO RELATED PARTIES DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Vendor Name TSMC China WaferTech Xintec TSMC Nanjing SSMC VIS Others (Note) Total STATEMENT 8 Amount $ 1,299,072 1,092,785 649,812 414,401 362,564 357,080 371,038 $ 4,546,752 Note: The amount of individual vendor in others does not exceed 5% of the account balance. - 225 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF PAYABLES TO CONTRACTORS AND EQUIPMENT SUPPLIERS DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) STATEMENT 9 Vendor Name Vendor B Vendor C Vendor D Others (Note) Total Amount $ 4,424,855 4,089,399 2,349,753 30,415,903 $ 41,279,910 Note: The amount of individual vendor included in others does not exceed 5% of the account balance. - 226 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Item Refund liability Guarantee deposit Receipts in advance Others (Note) Total Note: The amount of each item in others does not exceed 5% of the account balance. STATEMENT 10 Amount $ 21,199,032 6,148,000 2,740,649 19,690,361 $ 49,778,042 - 227 - 1 1 T N E M E T A T S l a r e t a l l o C t n e m y a p e R e u l a V g n i y r r a C d e z i t r o m a n U s m u i m e r P ) s t n u o c s i D ( t n u o m A , e c n a l a B r a e Y f o d n E t n e m y a p e R d i a p t n u o m A l a t o T n o p u o C ) % ( e t a R t s e r e t n I e t a D t n e m y a P e t a D e c n a u s s I e e t s u r T e m a N s d n o B l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N t n e m y a p e r t e l l u B 0 0 0 , 0 0 0 , 7 t n e m y a p e r t e l l u B 0 0 0 , 0 0 0 , 9 t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B 0 0 0 , 0 0 0 , 9 0 0 0 , 0 0 4 , 4 t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B - 0 0 0 , 0 0 0 , 3 0 0 0 , 0 0 0 , 0 1 - 0 0 0 , 0 0 6 , 3 0 0 0 , 0 0 6 , 1 1 t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B 0 0 0 , 0 0 5 , 3 0 0 0 , 0 0 2 , 0 1 t n e m y a p e r t e l l u B 0 0 0 , 0 0 5 , 8 t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B t n e m y a p e r t e l l u B 0 0 0 , 0 0 4 , 1 0 0 0 , 0 0 6 , 2 0 0 0 , 0 0 4 , 5 0 0 0 , 0 0 6 , 2 t n e m y a p e r t e l l u B - $ 0 0 0 , 0 0 8 , 1 9 ) 0 0 0 , 0 0 9 , 4 3 ( 0 0 0 , 0 0 9 , 6 5 $ - - - - - - - - - - - - - - - - - - - - - $ - $ 0 0 0 , 0 0 5 , 7 $ 0 0 0 , 0 0 5 , 7 $ 0 0 0 , 0 0 0 , 7 0 0 0 , 0 0 0 , 9 0 0 0 , 0 0 0 , 9 0 0 0 , 0 0 4 , 4 - 0 0 0 , 0 0 0 , 3 0 0 0 , 0 0 0 , 0 1 - 0 0 0 , 0 0 6 , 3 0 0 0 , 0 0 6 , 1 1 0 0 0 , 0 0 5 , 3 0 0 0 , 0 0 2 , 0 1 0 0 0 , 0 0 5 , 8 0 0 0 , 0 0 4 , 1 0 0 0 , 0 0 6 , 2 0 0 0 , 0 0 4 , 5 0 0 0 , 0 0 6 , 2 - - - - - - 0 0 0 , 0 0 6 , 0 1 0 0 0 , 0 0 2 , 6 - - - - - - - - - 0 0 0 , 0 0 0 , 7 0 0 0 , 0 0 0 , 9 0 0 0 , 0 0 0 , 9 0 0 0 , 0 0 4 , 4 0 0 0 , 0 0 6 , 0 1 0 0 0 , 0 0 0 , 0 1 0 0 0 , 0 0 0 , 3 0 0 0 , 0 0 2 , 6 0 0 0 , 0 0 6 , 1 1 0 0 0 , 0 0 6 , 3 0 0 0 , 0 0 5 , 3 0 0 0 , 0 0 2 , 0 1 0 0 0 , 0 0 5 , 8 0 0 0 , 0 0 4 , 1 0 0 0 , 0 0 6 , 2 0 0 0 , 0 0 4 , 5 0 0 0 , 0 0 6 , 2 $ 0 0 0 , 0 0 9 , 6 5 $ ) 0 0 0 , 0 0 9 , 4 3 ( 0 0 0 , 0 0 8 , 1 9 0 0 0 , 0 0 3 , 4 2 $ 0 0 0 , 0 0 1 , 6 1 1 $ 3 6 . 1 6 4 . 1 0 4 . 1 9 3 . 1 3 5 . 1 3 2 . 1 5 3 . 1 9 4 . 1 3 2 . 1 8 3 . 1 0 5 . 1 0 5 . 1 0 7 . 1 2 5 . 1 0 6 . 1 5 8 . 1 5 0 . 2 0 1 . 2 y l l a u n n a 8 2 . 9 0 n o 8 2 . 9 0 . 1 1 0 2 . d t L , . o C k n a B l a i c r e m m o C l a n o i t a n r e t n I a g e M B - y l l a u n n a 1 1 . 1 0 n o 1 1 . 1 0 . 2 1 0 2 . d t L , . o C k n a B l a i c r e m m o C l a n o i t a n r e t n I a g e M B - y l l a u n n a 2 0 . 8 0 n o 2 0 . 8 0 . 2 1 0 2 . d t L , . o C k n a B l a i c r e m m o C l a n o i t a n r e t n I a g e M B - 1 - 1 0 1 - s d n o b d e r u c e s n u c i t s e m o D 2 - 0 0 1 - s d n o b d e r u c e s n u c i t s e m o D 1 - 0 0 1 - s d n o b d e r u c e s n u c i t s e m o D y l l a u n n a 6 2 . 9 0 n o y l l a u n n a 9 0 . 0 1 n o y l l a u n n a 4 0 . 1 0 n o y l l a u n n a 4 0 . 1 0 n o y l l a u n n a 4 0 . 1 0 n o y l l a u n n a 6 0 . 2 0 n o y l l a u n n a 6 0 . 2 0 n o y l l a u n n a 6 0 . 2 0 n o y l l a u n n a 6 1 . 7 0 n o y l l a u n n a 6 1 . 7 0 n o 6 2 . 9 0 . 2 1 0 2 9 0 . 0 1 . 2 1 0 2 4 0 . 1 0 . 3 1 0 2 4 0 . 1 0 . 3 1 0 2 4 0 . 1 0 . 3 1 0 2 6 0 . 2 0 . 3 1 0 2 6 0 . 2 0 . 3 1 0 2 6 0 . 2 0 . 3 1 0 2 6 1 . 7 0 . 3 1 0 2 6 1 . 7 0 . 3 1 0 2 . d t L . d t L . d t L . d t L . d t L . d t L . d t L . d t L . d t L . d t L , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T 2 - 1 0 1 - s d n o b d e r u c e s n u c i t s e m o D 3 - 1 0 1 - s d n o b d e r u c e s n u c i t s e m o D 4 - 1 0 1 - s d n o b d e r u c e s n u c i t s e m o D B - 1 - 2 0 1 - s d n o b d e r u c e s n u c i t s e m o D 2 - 2 0 1 - s d n o b d e r u c e s n u c i t s e m o D 3 - 2 0 1 - s d n o b d e r u c e s n u c i t s e m o D A B - - A B C - - - A B C - - - y l l a u n n a 9 0 . 8 0 n o 9 0 . 8 0 . 3 1 0 2 . d t L , . o C k n a B l a i c r e m m o C n o b u F i e p i a T B - 4 - 2 0 1 - s d n o b d e r u c e s n u c i t s e m o D y l l a u n n a 5 2 . 9 0 n o y l l a u n n a 5 2 . 9 0 n o y l l a u n n a 5 2 . 9 0 n o y l l a u n n a 5 2 . 9 0 n o 5 2 . 9 0 . 3 1 0 2 5 2 . 9 0 . 3 1 0 2 5 2 . 9 0 . 3 1 0 2 5 2 . 9 0 . 3 1 0 2 . d t L . d t L . d t L , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T , . o C k n a B l a i c r e m m o C n o b u F i e p i a T . d t L , . o C k n a B l a i c r e m m o C n o b u F i e p i a T L A T O T n o i t r o p t n e r r u c : s s e L C D - - E - F - E L B A Y A P S D N O B F O T N E M E T A T S 8 1 0 2 , 1 3 R E B M E C E D ) s r a l l o D n a w i a T w e N f o s d n a s u o h T n I ( - 8 2 2 - d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T STATEMENT 12 Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF NET REVENUE FOR THE YEAR ENDED DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars, Unless Specified Otherwise) Item Shipments (Piece) (Note) Amount Wafer Other Net revenue Note: 12-inch equivalent wafers. 10,751,552 $ 906,992,422 116,933,291 $ 1,023,925,713 - 229 - Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF COST OF REVENUE FOR THE YEAR ENDED DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Item Raw materials used Balance, beginning of year Raw material purchased Raw materials, end of year Transferred to manufacturing or operating expenses Others Subtotal Direct labor Manufacturing expenses Manufacturing cost Work in process, beginning of year Work in process, end of year Transferred to manufacturing or operating expenses Cost of finished goods Finished goods, beginning of year Finished goods purchased Finished goods, end of year Transferred to manufacturing or operating expenses Scrapped Subtotal Others Total STATEMENT 13 Amount $ 6,566,716 48,003,230 (14,110,534) (6,483,906) (205,440) 33,770,066 14,099,289 474,764,387 522,633,742 52,166,234 (70,405,998) (21,864,208) 482,529,770 9,596,837 45,624,012 (10,920,351) (11,067,796) (103,647) 515,658,825 15,202,341 $ 530,861,166 - 230 - STATEMENT 14 Taiwan Semiconductor Manufacturing Company Limited STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2018 (In Thousands of New Taiwan Dollars) Item Research and Development Expenses General and Administrative Expenses Selling Expenses Payroll and related expense $ 28,608,138 $ 7,541,827 $ 2,121,253 Depreciation expense 22,154,406 822,877 Consumables 21,022,083 235,779 Repair and maintenance expense 3,624,661 1,266,629 Moving expense Service fee Patents Management fees of the Science Park Administration Commission Others (Note) Total 271,117 986,379 75,840 1,290,476 12,050 - - - 1,558,487 2,014,270 - - - 866,068 9,188,216 3,396,574 155,218 $ 84,944,461 $ 19,113,298 $ 3,201,670 42,835 3,050 596 600 Note: The amount of each item in others does not exceed 5% of the account balance. - 231 - 5 1 T N E M E T A T S 7 1 0 2 , 1 3 r e b m e c e D d e d n E r a e Y 8 1 0 2 , 1 3 r e b m e c e D d e d n E r a e Y l a t o T s e s n e p x E d n a s a d e i f i s s a l C r e h t O g n i t a r e p O e m o c n I s a d e i f i s s a l C g n i t a r e p O s e s n e p x E s a d e i f i s s a l C e u n e v e R f o t s o C l a t o T s e s n e p x E d n a s a d e i f i s s a l C r e h t O g n i t a r e p O e m o c n I s a d e i f i s s a l C g n i t a r e p O s e s n e p x E s a d e i f i s s a l C e u n e v e R f o t s o C 8 5 8 , 7 1 2 , 4 3 0 2 , 6 7 1 , 2 2 2 4 , 2 1 4 7 9 3 , 2 0 6 , 2 1 9 5 , 9 7 3 , 3 8 $ 1 7 4 , 8 8 7 , 2 9 8 2 0 , 5 2 3 , 4 5 3 1 , 7 9 5 , 0 5 2 $ $ $ - - - - - - - 0 1 5 , 4 6 $ 1 0 7 , 1 2 2 , 3 3 $ 0 9 8 , 7 5 1 , 0 5 $ 0 3 3 , 4 3 4 , 6 8 $ 2 6 2 , 0 7 7 2 2 4 , 2 1 4 2 1 6 , 1 9 8 7 9 5 , 9 8 5 , 1 1 6 2 , 8 2 6 , 2 1 4 9 , 5 0 4 , 1 - 5 8 7 , 0 1 7 , 1 3 6 6 , 9 9 3 , 4 1 1 3 , 0 1 3 , 2 2 9 0 , 8 7 3 9 1 4 , 2 8 4 , 2 $ $ $ 4 9 5 , 5 8 8 , 6 3 9 2 1 , 5 0 2 , 2 0 1 0 , 0 9 4 , 9 1 $ $ $ 7 7 8 , 2 0 9 , 5 5 9 9 8 , 9 1 1 , 2 5 1 6 , 2 4 0 , 1 3 2 $ $ $ 5 1 8 , 4 0 0 , 6 9 7 4 8 , 2 5 3 , 4 0 4 5 , 0 4 3 , 4 7 2 $ $ $ - - - - - - - 7 5 8 , 7 2 $ 0 2 0 , 4 5 4 , 4 3 $ 0 1 3 , 0 8 9 , 1 5 $ 5 1 3 , 2 5 8 2 9 0 , 8 7 3 8 2 3 , 8 7 8 3 6 4 , 8 0 7 , 1 0 0 2 , 0 1 6 , 2 6 9 9 , 7 5 4 , 1 - 1 9 0 , 4 0 6 , 1 $ $ $ 8 1 2 , 1 7 2 , 8 3 5 4 1 , 4 3 3 , 2 8 1 1 , 0 2 0 , 3 2 $ $ $ 7 9 5 , 3 3 7 , 7 5 2 0 7 , 8 1 0 , 2 5 6 5 , 2 9 2 , 1 5 2 $ $ $ e c n a r u s n i h t l a e h d n a r o b a L n o i t a s n e p m o c d r a o B n o i s n e P s r e h t O s u n o b d n a y r a l a S ) e t o N ( t s o c r o b a L n o i t a i c e r p e D n o i t a z i t r o m A . s r a e y h t o b r o f s r o t c e r i d e e y o l p m e - n o n 8 e r e w e r e h T . y l e v i t c e p s e r , s e e y o l p m e 9 3 1 , 3 4 d n a 8 2 2 , 3 4 d a h y n a p m o C e h t , 7 1 0 2 d n a 8 1 0 2 , 1 3 r e b m e c e D f o s A : e t o N N O I T C N U F Y B N O I T A Z I T R O M A D N A N O I T A I C E R P E D , R O B A L F O T N E M E T A T S ) e s i w r e h t O d e i f i c e p S s s e l n U , s r a l l o D n a w i a T w e N f o s d n a s u o h T n I ( 7 1 0 2 D N A 8 1 0 2 , 1 3 R E B M E C E D D E D N E R A E Y E H T R O F - 2 3 2 - d e t i i m L y n a p m o C g n i r u t c a f u n a M r o t c u d n o c i m e S n a w i a T Taiwan Semiconductor Manufacturing Company, Ltd. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Hsinchu 30078, Taiwan, R. O. C. Tel: 886-3-5636688 Fax: 886-3-5637000 http://www.tsmc.com Taiwan Semiconductor Manufacturing Company, Ltd. Mark Liu, Chairman 

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