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Investor Update
April 22, 2005Singapore
22 April 2005
Safe Harbor StatementThis presentation contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to our growth and profitability strategy; our ability to win first source business; revitalization of our manufacturing base to reduce the cost structure; the doubling of our 0.13 micron and below capacity with 300 mm commencing production in mid-2005; the implementation of a “borderless fab”; our plans to improve cost structure and reduce breakeven utilization to 75% by end 2005; our position with respect to advanced technology, acceleration of our technology migration and closing of our technology gap; the Chartered-IBM technology platform becoming the preferred solution at 90-nm and beyond; Fab 7's production schedule, our process roadmap; our open EDA/IP approach; our plans on utilization of mature capacity and plans for establishment of a manufacturing presence in China; the increase in our advanced capacity; our guidance on revenue (including the our share of SMP), net loss, ASP and utilization for second quarter of 2005; our projected 2005 financial and liquidity position, the cash flow from operations, available credit facilities, capital expenditures and target cash balance at the end of December 2005 and the projected 2005 depreciation and amortization reflect our current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are: changes in market outlook and trends, specifically in the foundry services and communications and computer markets; demands from our major customers, excess inventory and life cycles of specific products; competition from other foundries; unforeseen delays or interruptions in our plans for our fabrication facilities; the performance level of and technology mix in our fabrication facilities; our progress on leading edge products; the successful implementation of our partnership, technology and supply alliances; the timing and rate of the semiconductor market recovery; economic conditions in the United States as well as globally and the growth rate of fabless companies and the outsourcing strategy of integrated device manufacturers. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
22 April 2005
CharteredFocused on Growth and Profitability
Leveraging recent gains in advanced technology; partnering with IBM to place Chartered at forefront of technology
Creating opportunity for major “first source” wins
Higher growth; enhanced margins; better diversification
Revitalizing manufacturing base; reducing cost structure
Targeting to double 0.13-micron and below capacity from 2004 to 2005, with 300mm commencing production in mid 2005
Implementing “borderless fab” approach
Intensifying actions to improve cost structure and reduce break-even utilization to 75% by end 2005
Capture advanced technology market opportunity; reduce cost; increase flexibility
22 April 2005
Chartered – Closing the Technology Gap Opens New Opportunities
90-nm
Chartered Line Width
300
Line
Wid
th (N
anom
eter
)
200
ITRS* Line Width
100
01998 1999 2000 2001 2002 2003 2004 2005
Year of Production
*International Technology Roadmap for Semiconductors(MPU/ASIC Half Pitch)
22 April 2005
Accelerating Technology Migration
Technology accelerationAdvancing at the most rapid pace in our history- 2 to 3 quarters at 0.13um vs 10 quarters at 0.25um
CHRT-IBM technology platform is now the preferred alternative industry platform at 90-nm node and beyond- Infineon and Samsung joined development team at 65-nm- Recently announced cross-foundry design enablement is an
industry firstLogic, mixed-signal, RF CMOS, BiCMOS, SiGe, embedded memory
Expanding market reachNew customers, new end markets, better diversification
300mm Fab 7 underwayEntered into pilot production at end-2004Starting commercial shipment in July 2005
22 April 2005
Rapidly Increasing Leading-edge ShipmentsRevenue by Technology
17%
22%
16%
20%
13%
12%
11%
24%
19%
21%
8%
17%
13%
28%
20%
18%
5%
16%
18%
26%
11%
17%
3%
25%
3%11%
21%
11%
18%
4%
32%
1Q04 2Q04 3Q04 4Q04 1Q05
Up to 0.25um
Up to 0.35um
Above 0.35um
Note: Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5)
*Includes revenues from services related to generation of customers’ mask sets
Up to 0.18um
32% 0.13um
$63M$34M
Other*
Up to 0.15um
0.13-micron revenues up 1.8X
22 April 2005
CHRT-IBM Technology PlatformMomentum Building Rapidly
Industry’s first cross-foundry design enablement announced – Artisan and Virage join as partners
First customer announcement – 90nm SOI
4Q02
3Q034Q03
1Q042Q04
Cadence,Magma,Mentor & Synopsys join design enablement platform
CHRT-IBM extend joint development to 45nmcovering 3 generations of advanced process tech
CHRT-IBM-IFX-Samsung jointly developed 65nm design manual and SPICE models available for both base and low-power processes
1Q05
4Q04
3Q04Samsung joins joint development at 65-nm
Infineon joins joint development at 65-nm Fab 7 – begin equipment move-in
Customer discussions begin CHRT-AMD sourcing and
manufacturing technology agreements announced2Q03
1Q03
CHRT-IBM joint development (90 & 65nm) and reciprocal mfg agreement announced
Customer-focused approach is setting a new standard for foundry compatibility, design portability and sourcing flexibility
22 April 2005
AMD / Chartered Sourcing Agreement
AMD and Chartered sign sourcing and manufacturing technology agreements
Chartered to manufacture AMD64 microprocessors beginning 2006
AMD chooses Chartered for leading-edge manufacturingcapabilities
Chartered adopts AMD’s Automated Precision Manufacturing
Chartered has adopted portions of AMD’s yield-enhancement technology for implementation in Fab 7
Chartered is the only independent foundry to be offering90nm SOI production
22 April 2005
Chartered Process Roadmap
90nm
65nm
Low-K 300mm
Low-K 300mm
90nm
65nm
Low-K 300mm
Low-K 300mm
90nm
65nmLow-K
300mmLow-K 300mm
90nm Low-K
300mm
0.18um 20V
Core Logic
High Speed
Low Power
Mixed Signal/ RF CMOS
HV CMOS
2004
Note: Center of circle indicates pilot production
2005 2006
22 April 2005
Chartered Open EDA/IP Approach
Industry backgroundStarting at 0.18-um node and including 0.13-um and 90-nm, many foundries have design rule compatible baseline logic processes
Customers prefer open EDA/IP approachDesign portability – choice and flexibility in bringing design to foundry of choice; flexibility to move or second source
Chartered solutionProvide easy access to robust third-party network of pre-qualified EDA, IP and design services solutionsTake leadership role in advocating an open, standards-based approach with industry organizations and commercial consortiums
22 April 2005
Access to Complete Design Solutions
Chartered
Design Tools
LibrarySolutions
IPSolutions
Design Services
22 April 2005
Utilization of Mature Capacity
Targeting niche technology markets, leveraging Chartered’s mixed signal and RF CMOS strength
Example end products:SmartCards RFID TagsDisplay driversPower Mgt for Mobile Products
Targeting strategic partnerships for volume production
Working toward establishing manufacturing presence in China
22 April 2005
Revitalizing Capacity BaseIncreasing Advanced Capacity
Note: Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5)
K 8” Equivalent Wafers 2003 2004 2005E
0.13um
90nm
170
3571250 1289
1475
2003 2004 2005E
Total Capacity
71
Up 110%
Advanced CapacityUp 5.0X from 2003 to 2005
22 April 2005
Woodlands Campus
Fab 6Chartered Silicon
Partners (CSP)
Fab 6Chartered Silicon
Partners (CSP)
Fab 2
Fab 7Fab 7
CharteredReserved Land
Fab 2
CharteredReserved Land
Fab 5Silicon Manufacturing
Partners (SMP)
Fab 5Silicon Manufacturing
Partners (SMP)
Fab 3Fab 3
22 April 2005
Quarterly Financials(US$M)
Revenue Net Income / Cash FlowTotal Business Base*
5549
14
229256 257 191 181
15
52
1.9 15.3 16.2
(85)
(27)
87829793
60
Net Income Cash Flow from Operations
284
*Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5)
1Q04 2Q04 3Q04 4Q04 1Q05
306308
205
1Q04 2Q04 3Q04 4Q04 1Q05
196
SMPChartered
22 April 2005
2Q05 Outlook
*Includes Chartered’s share of minority-owned joint-venture SMP (Fab 5)**Includes loss impact due to CSP accounting treatment $17.2M in 1Q05 and projected to be $21.5M in 2Q05
-$(6.0)M, +/- $4M$(9.7)MGross profit (loss)
$(0.33), +/- $0.02
$(83.0)M, +/- $5M
65%, +/- 2%
$943, +/- $25
$915, +/- $20
$215.0M, +/- $5M
$193.0M, +/- $4M
22 Apr GuidanceMidpoint and Range
-
-
-
Down 5% to 10%
Down 6% to 10%
Up 7% to 12%
Up 4% to 9%
SequentialChange
$(84.5)MNet income (loss)**
$(0.34) Earnings (loss) per ADS
59%Utilization
$1,019ASP including Chartered’s share of SMP*
$996ASP
$196.1MRevenues including Chartered’s share of SMP*
$181.4MRevenues
1Q 2005Actual
2Q 2005
22 April 2005
Liquidity PositionSources & Uses – 2Q05 to 4Q05
Sources: (US$M) Uses: (US$M)
Opening Cash Balance $656(April 1, 2005)
Net Capacity Deposits 35and Other
Credit Facilities* 452
Derived Cash Flow 200from Operations**
Total $1,343
Cap Ex $546
Debt Repayments 297
Target Cash Balance 500(Dec 31, 2005)
Total $1,343
* Additional US$329M available and planned for use beyond 2005, bringing total credit facilities to US$781M
** Depreciation and Amortization for 2Q05 to 4Q05 expected to be US$409M
22 April 2005
CharteredFocused on Growth and Profitability
Leveraging recent gains in advanced technology; partnering with IBM to place Chartered at forefront of technology
Creating opportunity for major “first source” wins
Higher growth; enhanced margins; better diversification
Revitalizing manufacturing base; reducing cost structure
Targeting to double 0.13-micron and below capacity from 2004 to 2005, with 300mm commencing production in mid 2005
Implementing “borderless fab” approach
Intensifying actions to improve cost structure and reduce the break-even utilization to 75% by end 2005
Capture advanced technology market opportunity; reduce cost; increase flexibility
22 April 2005
Reconciliation Table
In order to provide investors additional information regarding the company’s financial results as determined in accordance with US GAAP, Chartered also provides information on its total business base revenues, which include the Company’s share of Silicon Manufacturing Partners (“Revenues including Chartered’s share of SMP”). SMP is a minority-owned joint-venture company and under US GAAP reporting, SMP revenues are not consolidated into Chartered’s revenues (“Revenues”). References to revenues including Chartered’s share of SMP are therefore not in accordance with US GAAP. To ensure clarity, the tables below provide a reconciliation.
(US$M) 1Q04 2Q04 3Q04 4Q04 1Q05Revenue 228.4 255.8 257.3 190.6 181.4CHRT share of SMP Revenue 55.3 52.3 49.2 14.1 14.7Revenue with CHRT share of SMP 283.7 308.1 306.5 204.7 196.1
22 April 2005
US GAAP Reconciliation TableBreakdown by Technology (micron)
Revenues (US GAAP) Percentage of Total 1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 0.13 and below 15% 18% 17% 27% 33% Up to 0.15 0% 0% 0% 0% 0% Up to 0.18 17% 18% 13% 15% 17% Up to 0.25 20% 21% 21% 11% 12% Up to 0.35 27% 30% 33% 28% 22% Above 0.35 21% 13% 16% 19% 13% Other* - - - - 3% Total 100% 100% 100% 100% 100% Chartered’s share of SMP Revenues Percentage of Total 1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 0.13 and below 2% 8% 9% 3% 10% Up to 0.15 67% 48% 34% 39% 53% Up to 0.18 30% 35% 42% 56% 37% Up to 0.25 1% 9% 15% 2% 0% Up to 0.35 0% 0% 0% 0% 0% Above 0.35 0% 0% 0% 0% 0% Total 100% 100% 100% 100% 100% Revenues including Chartered’s share of SMP Percentage of Total 1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 0.13 and below 12% 17% 16% 25% 32% Up to 0.15 13% 8% 5% 3% 4% Up to 0.18 20% 21% 18% 17% 18% Up to 0.25 16% 19% 20% 11% 11% Up to 0.35 22% 24% 28% 26% 21% Above 0.35 17% 11% 13% 18% 11% Other* - - - - 3% Total 100% 100% 100% 100% 100% * Includes revenues from services related to generation of customers’ mask sets
