TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Balance Sheet

(1)
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD"))

December 31, 2022 (Audited) September 30, 2022 (Unaudited) December 31, 2021 (Audited) QoQ YoY
ASSETS USD NTD % NTD % NTD % Amount % Amount %
Current Assets
Cash and Cash Equivalents $ 43,721 $ 1,342,814 27.0 $ 1,296,013 27.9 $ 1,064,990 28.6 $ 46,801 3.6 $ 277,824 26.1
Investments in Marketable Financial Instruments 7,120 218,672 4.4 202,861 4.4 123,465 3.3 15,811 7.8 95,207 77.1
Accounts Receivable 7,532 231,340 4.7 261,538 5.6 198,302 5.3 (30,198) (11.5) 33,038 16.7
Inventories 7,201 221,149 4.4 218,336 4.7 193,102 5.2 2,813 1.3 28,047 14.5
Other Current Assets 1,267 38,922 0.8 35,484 0.8 27,214 0.7 3,438 9.7 11,708 43.0
Total Current Assets 66,841 2,052,897 41.3 2,014,232 43.4 1,607,073 43.1 38,665 1.9 445,824 27.7

Non-current Assets
Long-term Investments 2,245 68,928 1.4 75,796 1.6 29,384 0.8 (6,868) (9.1) 39,544 134.6
Property, Plant and Equipment 87,710 2,693,837 54.3 2,411,490 51.9 1,975,119 53.0 282,347 11.7 718,718 36.4
Right-of-use, Intangible and Other Non-current Assets 4,855 149,117 3.0 141,784 3.1 113,927 3.1 7,333 5.2 35,190 30.9
Total Non-current Assets 94,810 2,911,882 58.7 2,629,070 56.6 2,118,430 56.9 282,812 10.8 793,452 37.5

Total Assets $ 161,651 $ 4,964,779 100.0 $ 4,643,302 100.0 $ 3,725,503 100.0 $ 321,477 6.9 $ 1,239,276 33.3

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Short-term Loans $ - $ - - $ - - $ 114,921 3.1 $ - - $ (114,921) (100.0)
Accounts Payable 1,840 56,522 1.1 62,018 1.3 48,723 1.3 (5,496) (8.9) 7,799 16.0
Payables to Contractors and Equipment Suppliers 6,952 213,500 4.3 159,780 3.5 145,742 3.9 53,720 33.6 67,758 46.5
Cash Dividends Payable 4,644 142,617 2.9 142,617 3.1 142,617 3.8 - - - -
Accrued Expenses and Other Current Liabilities 16,679 512,274 10.3 419,589 9.0 282,933 7.6 92,685 22.1 229,341 81.1
Current Portion of Bonds Payable and Bank Loans 629 19,314 0.4 23,427 0.5 4,567 0.1 (4,113) (17.6) 14,747 322.9
Total Current Liabilities 30,744 944,227 19.0 807,431 17.4 739,503 19.8 136,796 16.9 204,724 27.7

Non-current Liabilities
Bonds Payable 27,166 834,336 16.8 842,387 18.1 610,071 16.4 (8,051) (1.0) 224,265 36.8
Other Non-current Liabilities 7,349 225,727 4.6 241,168 5.2 205,196 5.5 (15,441) (6.4) 20,531 10.0
Total Non-current Liabilities 34,515 1,060,063 21.4 1,083,555 23.3 815,267 21.9 (23,492) (2.2) 244,796 30.0

Total Liabilities 65,259 2,004,290 40.4 1,890,986 40.7 1,554,770 41.7 113,304 6.0 449,520 28.9

Equity Attributable to Shareholders of the Parent

Capital Stock at Par Value 8,443 259,304 5.2 259,304 5.6 259,304 7.0 - - - -
Capital Surplus 2,257 69,330 1.4 69,316 1.5 64,762 1.7 14 - 4,568 7.1
Legal Capital Reserve 10,131 311,147 6.3 311,147 6.7 311,147 8.4 - - - -
Special Capital Reserve 103 3,154 - 35,065 0.8 59,304 1.6 (31,911) (91.0) (56,150) (94.7)
Unappropriated Earnings 75,643 2,323,224 46.8 2,066,562 44.5 1,536,378 41.2 256,662 12.4 786,846 51.2
Others (668) (20,506) (0.4) (3,420) (0.1) (62,609) (1.7) (17,086) (499.6) 42,103 67.2
Equity Attributable to Shareholders of the Parent 95,909 2,945,653 59.3 2,737,974 59.0 2,168,286 58.2 207,679 7.6 777,367 35.9
Noncontrolling Interests 483 14,836 0.3 14,342 0.3 2,447 0.1 494 3.4 12,389 506.3
Total Shareholders' Equity 96,392 2,960,489 59.6 2,752,316 59.3 2,170,733 58.3 208,173 7.6 789,756 36.4

Total Liabilities & Shareholders' Equity $ 161,651 $ 4,964,779 100.0 $ 4,643,302 100.0 $ 3,725,503 100.0 $ 321,477 6.9 $ 1,239,276 33.3

Note :
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$30.713 as of December 31, 2022.
 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income (Unaudited)
For the Three Months Ended December 31, 2022, September 30, 2022, December 31, 2021
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)
Except for Per Share Amounts and Shares Outstanding)

4Q 2022 3Q 2022 4Q 2021 QoQ YoY

USD NTD % NTD % NTD % NTD % NTD %
Net Revenue $ 19,931 $ 625,532 100.0 $ 613,142 100.0 $ 438,189 100.0 $ 12,390 2.0 $ 187,343 42.8
Cost of Revenue (7,531) (236,347) (37.8) (242,643) (39.6) (207,434) (47.3) 6,296 (2.6) (28,913) 13.9
Gross Profit 12,400 389,185 62.2 370,499 60.4 230,755 52.7 18,686 5.0 158,430 68.7
Operating Expenses
Research and Development Expenses (1,421) (44,587) (7.1) (42,977) (7.0) (32,239) (7.4) (1,610) 3.7 (12,348) 38.3
Sales, General and Administrative Expenses (635) (19,949) (3.2) (17,209) (2.8) (15,639) (3.6) (2,740) 15.9 (4,310) 27.6
Total Operating Expenses (2,056) (64,536) (10.3) (60,186) (9.8) (47,878) (11.0) (4,350) 7.2 (16,658) 34.8
Other Operating Income and Expenses 13 392 0.1 11 - (105) - 381 3,463.6 497 NM
Income from Operations 10,357 325,041 52.0 310,324 50.6 182,772 41.7 14,717 4.7 142,269 77.8
Non-operating Income and Expenses
Share of Profits of Associates 55 1,738 0.3 2,078 0.4 1,651 0.4 (340) (16.4) 87 5.3
Net Interest Income (Expenses) 231 7,252 1.1 3,245 0.5 (712) (0.2) 4,007 123.5 7,964 NM
Other Gains and Losses 20 639 0.1 1,044 0.2 1,108 0.3 (405) (38.8) (469) (42.3)
Total Non-operating Income and Expenses 306 9,629 1.5 6,367 1.1 2,047 0.5 3,262 51.2 7,582 370.4
Income Before Income Tax 10,663 334,670 53.5 316,691 51.7 184,819 42.2 17,979 5.7 149,851 81.1
Income Tax Expenses (1,236) (38,791) (6.2) (35,723) (5.9) (18,446) (4.2) (3,068) 8.6 (20,345) 110.3
Net Income 9,427 295,879 47.3 280,968 45.8 166,373 38.0 14,911 5.3 129,506 77.8

Other Comprehensive Income (Losses) (525) (16,482) (2.6) 32,122 5.3 (2,677) (0.6) (48,604) (151.3) (13,805) (515.7)

Comprehensive Income $ 8,902 $ 279,397 44.7 $ 313,090 51.1 $ 163,696 37.4 $ (33,693) (10.8) $ 115,701 70.7

Net Income (Losses) Attributable to:

Shareholders of the Parent $ 9,428 $ 295,904 47.3 $ 280,866 45.8 $ 166,232 37.9 $ 15,038 5.4 $ 129,672 78.0
Noncontrolling Interests (1) (25) - 102 - 141 0.1 (127) (124.5) (166) (117.7)
$ 9,427 $ 295,879 47.3 $ 280,968 45.8 $ 166,373 38.0 $ 14,911 5.3 $ 129,506 77.8

Earnings per Share - Diluted $ 0.36 $ 11.41 $ 10.83 $ 6.41 $ 0.58 5.4 $ 5.00 78.0
Earnings per ADR - Diluted (2) $ 1.82 $ 57.06 $ 54.16 $ 32.05 $ 2.90 5.4 $ 25.01 78.0

Weighted Average Outstanding Shares - Diluted ('M) 25,929 25,929 25,930

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.385 for the fourth quarter of 2022.
(2) 1 ADR equals 5 ordinary shares.
 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income (Audited)
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)
Except for Per Share Amounts and Shares Outstanding)

For the Years Ended December 31

2022 2021 YoY
USD NTD % NTD % NTD %
Net Revenue $ 75,881 $ 2,263,891 100.0 $ 1,587,415 100.0 $ 676,476 42.6

Cost of Revenue (30,687) (915,536) (40.4) (767,878) (48.4) (147,658) 19.2

Gross Profit 45,194 1,348,355 59.6 819,537 51.6 528,818 64.5

Operating Expenses
Research and Development Expenses (5,472) (163,262) (7.2) (124,735) (7.9) (38,527) 30.9
Sales, General and Administrative Expenses (2,127) (63,446) (2.8) (44,488) (2.8) (18,958) 42.6
Total Operating Expenses (7,599) (226,708) (10.0) (169,223) (10.7) (57,485) 34.0

Other Operating Income and Expenses (12) (368) (0.1) (333) - (35) (10.5)

Income from Operations 37,583 1,121,279 49.5 649,981 40.9 471,298 72.5

Non-operating Income and Expenses

Share of Profits of Associates 261 7,799 0.3 5,603 0.4 2,196 39.2
Net Interest Income (Expenses) 358 10,672 0.5 294 - 10,378 3,529.9
Other Gains and Losses 149 4,441 0.2 7,248 0.5 (2,807) (38.7)
Total Non-operating Income and Expenses 768 22,912 1.0 13,145 0.9 9,767 74.3

Income before Income Tax 38,351 1,144,191 50.5 663,126 41.8 481,065 72.5

Income Tax Expenses (4,267) (127,290) (5.6) (66,053) (4.2) (61,237) 92.7

Net Income 34,084 1,016,901 44.9 597,073 37.6 419,828 70.3

Other Comprehensive Income (Losses) 1,422 42,430 1.9 (7,619) (0.5) 50,049 NM

Comprehensive Income $ 35,506 $ 1,059,331 46.8 $ 589,454 37.1 $ 469,877 79.7

Net Income Attributable to:

Shareholders of the Parent $ 34,072 $ 1,016,530 44.9 $ 596,540 37.6 $ 419,990 70.4
Noncontrolling interests 12 371 - 533 - (162) (30.4)
$ 34,084 $ 1,016,901 44.9 $ 597,073 37.6 $ 419,828 70.3

Earnings per Share - Diluted $ 1.31 $ 39.20 $ 23.01 $ 16.19 70.4

Earnings per ADR - Diluted (2) $ 6.57 $ 196.02 $ 115.03 $ 80.99 70.4

Weighted Average Outstanding Shares - Diluted ('M) 25,929 25,930

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$29.835 for the year ended December 31, 2022.
(2) 1 ADR equals 5 ordinary shares.
 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Cash Flow Statements
For the Year Ended December 31, 2022 and for the Three Months Ended December 31, 2022, September 30, 2022 and December 31, 2021
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)

2022 4Q 2022 3Q 2022 4Q 2021

(Audited) (Unaudited) (Unaudited) (Unaudited)
USD NTD NTD NTD NTD
Cash Flows from Operating Activities:
Income Before Income Tax $ 38,351 $ 1,144,191 $ 334,670 $ 316,691 $ 184,819
Depreciation & Amortization 14,656 437,254 107,582 105,345 110,663
Share of Profits of Associates (261) (7,799) (1,738) (2,078) (1,651)
Income Taxes Paid (2,902) (86,561) (87) (26,371) (158)
Changes in Working Capital & Others 4,140 123,514 46,456 19,111 84,527
Net Cash Generated by Operating Activities 53,984 1,610,599 486,883 412,698 378,200

Cash Flows from Investing Activities:

Interest Received 606 18,084 8,644 5,117 1,521
Cash Dividend Received 101 3,016 6 2,479 5
Acquisitions of:
Property, Plant and Equipment (36,289) (1,082,672) (336,844) (265,970) (235,556)
Marketable Financial Instruments (7,971) (237,818) (65,040) (51,589) (64,246)
Proceeds from Disposal or Redemption of:
Property, Plant and Equipment 33 983 182 128 176
Marketable Financial Instruments 3,596 107,293 45,451 26,985 55,865
Others 7 186 5,069 (1,540) (3,108)
Net Cash Used In Investing Activities (39,917) (1,190,928) (342,532) (284,390) (245,343)

Cash Flows from Financing Activities:

Decrease in Short-term Loans (3,753) (111,960) - (116,009) (1,862)
Proceeds from Issuance of Bonds 6,646 198,293 10,199 59,651 157,465
Repayment of Bonds (147) (4,400) (4,400) - -
Repayment of Long-term Bank Loans (6) (167) (167) - -
Interest Paid (410) (12,219) (5,721) (1,841) (1,139)
Cash Dividends Paid for Common Stock (9,560) (285,234) (71,308) (71,309) (71,308)
Repurchase of Treasury Stock (29) (872) - - -
Others 547 16,315 1,565 (898) (873)
Net Cash Generated by (Used in) Financing Activities (6,712) (200,244) (69,832) (130,406) 82,283

Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,957 58,397 (27,718) 44,922 (3,962)

Net Increase in Cash and Cash Equivalents 9,312 277,824 46,801 42,824 211,178

Cash and Cash Equivalents at Beginning of Period 35,696 1,064,990 1,296,013 1,253,189 853,812

Cash and Cash Equivalents at End of Period $ 45,008 $ 1,342,814 $ 1,342,814 $ 1,296,013 $ 1,064,990

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$29.835 for the year ended December 31, 2022.