Exhibit 99.3
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
Supplementary Information for the Year Ended December 31, 2006
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
AND SUBSIDIARIES
AND SUBSIDIARIES
INDEX
Page Number | ||||
S-1 | ||||
S-11 | ||||
S-12 | ||||
A-1 to A-4 |
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
FOR THE YEAR ENDED DECEMBER 31, 2006
Directors’ Report
We are pleased to submit this annual report to the members of the Company together with the audited unconsolidated and consolidated financial statements for the year ended December 31, 2006.
Directors
The directors in office at the date of this report are as follows:-
James A. Norling | (Chairman) | |
Chia Song Hwee | (President and CEO) | |
Philip Tan Yuen Fah | (Chairman of Audit Committee) | |
Andre Borrel | ||
Charles E Thompson | ||
Tsugio Makimoto | ||
Tay Siew Choon | ||
Peter Seah Lim Huat | ||
Pasquale Pistorio | ||
Steven Hugh Hamblin | ||
Maurizio Ghirga | (Appointed on November 2, 2006) |
Directors’ Interests
According to the register kept by the Company for the purposes of Section 164 of the Companies Act, Chapter 50 (the “Act”), particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures and shares options of the Company and in related corporations are as follows:
At beginning | ||||||||
of the year/ | At end of | |||||||
date of appointment | the year | |||||||
The Company — Ordinary shares fully paid | ||||||||
James A. Norling | 36,000 | 36,000 | ||||||
Chia Song Hwee | 242,616 | 253,083 | ||||||
Andre Borrel | 36,060 | 36,060 | ||||||
Charles E Thompson | 75,750 | 75,750 | ||||||
Tsugio Makimoto | 19,000 | 19,000 | ||||||
Pasquale Pistorio | 2,500,000 | 2,500,000 | ||||||
Steven Hugh Hamblin | — | 10,000 |
S-1
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
At beginning | ||||||||||||||
of the year/ | ||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||
appointment | the year | price | period | |||||||||||
S$ | ||||||||||||||
The Company — Options to subscribe for ordinary shares | ||||||||||||||
James A. Norling | 58,609 | — | 4.05 | 28/03/2002 to 28/03/2006 | ||||||||||
58,609 | — | 4.26 | 15/08/2002 to 15/08/2006 | |||||||||||
58,609 | 58,609 | 3.46 | 22/02/2003 to 22/02/2007 | |||||||||||
1,172,195 | 1,172,195 | 3.88 | 01/05/2002 to 01/05/2012 | |||||||||||
58,609 | 58,609 | 1.86 | 30/08/2003 to 30/08/2007 | |||||||||||
50,000 | 50,000 | 0.72 | 28/02/2004 to 28/02/2008 | |||||||||||
60,000 | 60,000 | 1.10 | 29/08/2004 to 29/08/2008 | |||||||||||
110,000 | 110,000 | 1.70 | 27/02/2005 to 27/02/2009 | |||||||||||
110,000 | 110,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 120,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Chia Song Hwee | 10,467 | — | 1.18 | 28/10/1997 to 28/10/2006 | ||||||||||
20,935 | 20,935 | 1.00 | 28/11/1998 to 28/11/2007 | |||||||||||
61,704 | 61,704 | 0.80 | 30/11/1998 to 29/11/2008 | |||||||||||
26,444 | 26,444 | 0.80 | 30/04/1999 to 29/04/2009 | |||||||||||
234,439 | 234,439 | 2.86 | 29/10/1999 to 29/10/2009 | |||||||||||
70,331 | 70,331 | 2.86 | 29/04/2000 to 29/10/2009 | |||||||||||
410,268 | 410,268 | 14.24 | 06/04/2001 to 06/04/2010 | |||||||||||
527,487 | 527,487 | 10.12 | 03/10/2001 to 03/10/2010 | |||||||||||
263,743 | 263,743 | 4.05 | 28/03/2002 to 28/03/2011 | |||||||||||
263,743 | 263,743 | 4.26 | 15/08/2002 to 15/08/2011 | |||||||||||
234,439 | 234,439 | 3.46 | 22/02/2003 to 22/02/2012 | |||||||||||
2,344,391 | 2,344,391 | 1.86 | 30/08/2003 to 30/08/2012 | |||||||||||
300,000 | 300,000 | 0.72 | 28/02/2004 to 28/02/2013 | |||||||||||
700,000 | 700,000 | 1.10 | 29/08/2004 to 29/08/2013 | |||||||||||
1,000,000 | 1,000,000 | 1.70 | 27/02/2005 to 27/02/2014 | |||||||||||
220,000 | 220,000 | 1.02 | 30/07/2004 to 30/07/2014 | |||||||||||
1,000,000 | 1,000,000 | 1.16 | 26/08/2006 to 26/08/2015 | |||||||||||
— | 1,000,000 | 1.21 | 25/08/2007 to 25/08/2016 | |||||||||||
Andre Borrel | 46,887 | — | 4.05 | 28/03/2002 to 28/03/2006 | ||||||||||
46,887 | — | 4.26 | 15/08/2002 to 15/08/2006 | |||||||||||
46,887 | 46,887 | 3.46 | 22/02/2003 to 22/02/2007 | |||||||||||
46,887 | 46,887 | 1.86 | 30/08/2003 to 30/08/2007 | |||||||||||
40,000 | 40,000 | 0.72 | 28/02/2004 to 28/02/2008 | |||||||||||
45,000 | 45,000 | 1.10 | 29/08/2004 to 29/08/2008 | |||||||||||
85,000 | 85,000 | 1.70 | 27/02/2005 to 27/02/2009 | |||||||||||
60,000 | 60,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Charles E Thompson | 29,304 | — | 4.05 | 28/03/2002 to 28/03/2006 | ||||||||||
29,304 | — | 4.26 | 15/08/2002 to 15/08/2006 | |||||||||||
29,304 | 29,304 | 3.46 | 22/02/2003 to 22/02/2007 | |||||||||||
29,304 | 29,304 | 1.86 | 30/08/2003 to 30/08/2007 | |||||||||||
25,000 | 25,000 | 0.72 | 28/02/2004 to 28/02/2008 | |||||||||||
35,000 | 35,000 | 1.10 | 29/08/2004 to 29/08/2008 | |||||||||||
60,000 | 60,000 | 1.70 | 27/02/2005 to 27/02/2009 | |||||||||||
60,000 | 60,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 |
S-2
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
At beginning | ||||||||||||||
of the year/ | ||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||
appointment | the year | price | period | |||||||||||
S$ | ||||||||||||||
Tsugio Makimoto | 29,304 | — | 4.05 | 28/03/2002 to 28/03/2006 | ||||||||||
29,304 | — | 4.26 | 15/08/2002 to 15/08/2006 | |||||||||||
29,304 | 29,304 | 3.46 | 22/02/2003 to 22/02/2007 | |||||||||||
29,304 | 29,304 | 1.86 | 30/08/2003 to 30/08/2007 | |||||||||||
25,000 | 25,000 | 0.72 | 28/02/2004 to 28/02/2008 | |||||||||||
35,000 | 35,000 | 1.10 | 29/08/2004 to 29/08/2008 | |||||||||||
60,000 | 60,000 | 1.70 | 27/02/2005 to 27/02/2009 | |||||||||||
60,000 | 60,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Peter Seah Lim Huat | 23,443 | 23,443 | 3.46 | 22/02/2003 to 22/02/2007 | ||||||||||
46,887 | 46,887 | 1.86 | 30/08/2003 to 30/08/2007 | |||||||||||
40,000 | 40,000 | 0.72 | 28/02/2004 to 28/02/2008 | |||||||||||
45,000 | 45,000 | 1.10 | 29/08/2004 to 29/08/2008 | |||||||||||
85,000 | 85,000 | 1.70 | 27/02/2005 to 27/02/2009 | |||||||||||
85,000 | 85,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 95,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Tay Siew Choon | 23,443 | — | 4.26 | 15/08/2002 to 15/08/2006 | ||||||||||
29,304 | 29,304 | 3.46 | 22/02/2003 to 22/02/2007 | |||||||||||
234,439 | 234,439 | 3.88 | 01/05/2002 to 01/05/2007 | |||||||||||
46,887 | 46,887 | 1.86 | 30/08/2003 to 30/08/2007 | |||||||||||
25,000 | 25,000 | 0.72 | 28/02/2004 to 28/02/2008 | |||||||||||
35,000 | 35,000 | 1.10 | 29/08/2004 to 29/08/2008 | |||||||||||
60,000 | 60,000 | 1.70 | 27/02/2005 to 27/02/2009 | |||||||||||
60,000 | 60,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Philip Tan Yuen Fah | 85,000 | 85,000 | 1.70 | 27/02/2005 to 27/02/2009 | ||||||||||
85,000 | 85,000 | 1.16 | 26/08/2006 to 26/08/2010 | |||||||||||
— | 95,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Pasquale Pistorio | 60,000 | 60,000 | 1.16 | 26/08/2006 to 26/08/2010 | ||||||||||
— | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | |||||||||||
Steven Hugh Hamblin | — | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 |
S-3
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
Related Corporations
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
Global Crossing Limited — common stock of US$0.01 each | ||||||||
Peter Seah Lim Huat | 750 | 1,785 |
At beginning | ||||||||||||
of the year/ | ||||||||||||
date of | At end of | |||||||||||
appointment | the year | Vesting period/date | ||||||||||
Global Crossing Limited — Restricted stock units of US$0.01 each | ||||||||||||
Peter Seah Lim Huat | 6,750 | 5,625 | 08/03/2005 to 08/03/2009 | |||||||||
— | 3,294 | 15/08/2007 |
At beginning | |||||||||||||||||
of the year/ | |||||||||||||||||
date of | At end of | Exercise | Exercise | ||||||||||||||
appointment | the year | price | period | ||||||||||||||
US$ | |||||||||||||||||
Global Crossing Limited — Options to subscribe for common stocks of US$0.01 each pursuant to STT Communication Share Option Plan 2004 | |||||||||||||||||
Peter Seah Lim Huat | 40,000 | 40,000 | US$10.16 | 12/01/2005 to 12/01/2014 | |||||||||||||
Tay Siew Choon | 11,000 | — | US$10.16 | 12/01/2005 to 12/01/2014 |
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
Green Dot Internet Services Pte Ltd — Ordinary shares fully paid | ||||||||
Tay Siew Choon | — | 30,316 |
At beginning | ||||||||||||||||
of the year/ | ||||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||||
appointment | the year | price | Period | |||||||||||||
S$ | ||||||||||||||||
Green Dot Internet Services Pte Ltd — Options to subscribe for ordinary shares | ||||||||||||||||
Tay Siew Choon | 16,627 | — | 1.00 | 12/03/2003 to 11/03/2013 | ||||||||||||
10,466 | — | 1.00 | 01/04/2004 to 31/03/2014 | |||||||||||||
11,681 | — | 1.00 | 01/04/2005 to 31/03/2015 |
S-4
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
At beginning | ||||||||||||||||
of the year/ | ||||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||||
appointment | the year | price | Period | |||||||||||||
Rp | ||||||||||||||||
PT Indosat Tbk — Options to subscribe for ordinary shares of Rp 100 each pursuant to PT Indosat Tbk ESOP program | ||||||||||||||||
Peter Seah Lim Huat | 150,000 | — | 3,702.60 | 01/08/2005 to 31/07/2006 |
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
Singapore Computer Systems Limited — Ordinary shares fully paid | ||||||||
Tay Siew Choon | 971,000 | 971,000 | ||||||
Singapore Telecommunications Limited — Ordinary shares fully paid | ||||||||
Chia Song Hwee | 1,690 | 1,610 | ||||||
Peter Seah Lim Huat | 3,180 | 3,040 | ||||||
Tay Siew Choon | 2,990 | 2,850 | ||||||
Philip Tan Yuen Fah | 3,370 | 3,220 | ||||||
Singapore Technologies Engineering Ltd — Ordinary shares fully paid | ||||||||
Philip Tan Yuen Fah | 25,686 | 120,686 |
S-5
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
At beginning | ||||||||||||||||
of the year/ | ||||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||||
appointment | the year | price | period | |||||||||||||
S$ | ||||||||||||||||
Singapore Technologies Engineering Ltd — Options to subscribe for ordinary shares | ||||||||||||||||
Peter Seah Lim Huat | 89,000 | 89,000 | 1.92 | 13/08/2003 to 12/08/2007 | ||||||||||||
44,500 | 44,500 | 1.79 | 07/02/2004 to 06/02/2008 | |||||||||||||
40,500 | 40,500 | 1.86 | 12/08/2004 to 11/08/2008 | |||||||||||||
44,500 | 44,500 | 2.09 | 10/02/2005 to 09/02/2009 | |||||||||||||
44,500 | 44,500 | 2.12 | 11/08/2005 to 10/08/2009 | |||||||||||||
44,500 | 44,500 | 2.37 | 08/02/2006 to 07/02/2010 | |||||||||||||
44,500 | 44,500 | 2.57 | 11/08/2006 to 10/08/2010 | |||||||||||||
— | 44,500 | 3.01 | 10/02/2007 to 09/02/2011 | |||||||||||||
— | 44,500 | 2.84 | 11/08/2007 to 10/08/2011 | |||||||||||||
Philip Tan Yuen Fah | 95,000 | — | 2.72 | 20/02/2002 to 19/02/2006 | ||||||||||||
55,000 | 55,000 | 2.29 | 08/02/2003 to 07/02/2007 | |||||||||||||
27,500 | 27,500 | 1.79 | 07/02/2004 to 06/02/2008 | |||||||||||||
27,500 | 27,500 | 1.86 | 12/08/2004 to 11/08/2008 | |||||||||||||
SNP Corporation Ltd — Options to subscribe for ordinary shares | ||||||||||||||||
Tay Siew Choon | 20,000 | 20,000 | 0.50 | 23/04/2002 to 22/04/2011 | ||||||||||||
50,000 | 50,000 | 0.69 | 17/04/2003 to 16/04/2007 | |||||||||||||
50,000 | 50,000 | 0.59 | 15/04/2004 to 14/04/2008 | |||||||||||||
70,000 | 70,000 | 1.19 | 21/04/2005 to 20/04/2009 | |||||||||||||
77,000 | 77,000 | 0.90 | 19/04/2006 to 18/04/2010 | |||||||||||||
STT Communications Ltd — Options to subscribe for ordinary shares | ||||||||||||||||
Peter Seah Lim Huat | 2,000 | — | 0.50 | 29/06/2003 to 28/06/2012 | ||||||||||||
19,500 | 9,750 | 0.57 | 30/07/2004 to 29/07/2013 | |||||||||||||
130,000 | 65,000 | 1.08 | 29/07/2005 to 28/07/2014 | |||||||||||||
Tay Siew Choon | 7,500 | — | 0.50 | 24/11/2002 to 23/11/2011 | ||||||||||||
20,000 | — | 0.50 | 29/06/2003 to 28/06/2012 | |||||||||||||
50,000 | — | 0.57 | 30/07/2004 to 29/07/2013 | |||||||||||||
150,000 | — | 1.08 | 29/07/2005 to 28/07/2014 |
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
Singapore Food Industries Limited — Ordinary shares fully paid | ||||||||
Tay Siew Choon | 863,000 | 676,000 | ||||||
Philip Tan Yuen Fah | 140,000 | 210,000 |
S-6
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
At beginning | ||||||||||||||||
of the year/ | ||||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||||
appointment | the year | price | period | |||||||||||||
S$ | ||||||||||||||||
Singapore Food Industries Limited — Options to subscribe for ordinary shares | ||||||||||||||||
Philip Tan Yuen Fah | 70,000 | — | 0.69 | 28/07/2002 to 27/07/2006 | ||||||||||||
70,000 | 70,000 | 0.78 | 09/08/2003 to 08/08/2007 | |||||||||||||
70,000 | 70,000 | 0.76 | 05/08/2004 to 04/08/2008 | |||||||||||||
70,000 | 70,000 | 0.80 | 10/06/2005 to 09/06/2009 | |||||||||||||
70,000 | 70,000 | 0.99 | 13/06/2006 to 12/06/2010 | |||||||||||||
— | 70,000 | 0.92 | 11/08/2007 to 10/08/2011 |
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
SMRT Corporation Ltd — Ordinary shares fully paid | ||||||||
Tay Siew Choon+ | 30,000 | 30,000 | ||||||
StarHub Ltd — Ordinary shares fully paid | ||||||||
Peter Seah Lim Huat | 60,000 | 133,720 |
At beginning | ||||||||||||||||
of the year/ | ||||||||||||||||
date of | At end of | Exercise | Exercise | |||||||||||||
appointment | the year | price | period | |||||||||||||
S$ | ||||||||||||||||
StarHub Ltd — Options to subscribe for ordinary shares | ||||||||||||||||
Peter Seah Lim Huat | 37,500 | — | 0.880 | 30/11/2003 to 29/11/2007 | ||||||||||||
18,750 | — | 0.880 | 31/05/2004 to 30/05/2008 | |||||||||||||
18,750 | 6,250 | 0.880 | 29/11/2004 to 28/11/2008 | |||||||||||||
18,750 | 6,250 | 0.960 | 03/04/2005 to 02/04/2009 | |||||||||||||
18,750 | 12,500 | 0.985 | 27/11/2005 to 26/11/2009 | |||||||||||||
25,500 | 17,000 | 1.520 | 31/05/2006 to 30/05/2010 |
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
Telechoice International Limited — Ordinary shares fully paid | ||||||||
Peter Seah Lim Huat | 50,000 | 50,000 | ||||||
Tay Siew Choon | 60,000 | 60,000 |
S-7
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
At beginning | ||||||||
of the year/ | ||||||||
date of | At end of | |||||||
appointment | the year | |||||||
Vertex Investment (II) Ltd — Ordinary shares fully paid | ||||||||
Tay Siew Choon* | 2 | 2 | ||||||
Vertex Technology Fund Ltd — Ordinary shares fully paid | ||||||||
Tay Siew Choon++ | 20 | 20 | ||||||
Vertex Technology Fund (II) Ltd — Ordinary shares fully paid | ||||||||
Tay Siew Choon+++ | 500 | 500 | ||||||
Vertex Technology Fund (II) Ltd — Redeemable preference shares fully paid | ||||||||
Tay Siew Choon+++ | 500 | 500 |
* | Held in the name of United Overseas Bank Trustee Limited | |
+ | Held in the name of DBS Nominees (Private) Limited | |
++ | Held in the name of HSBC Trustee (Singapore) Limited | |
+++ | Held in the name of DBS Vickers Securities Nominees (Singapore) Pte Ltd |
Directors’ Interests in Contracts
During the financial year, one of the directors of the Company received advisory fees from a related company in his capacity as Corporate Advisor to the company for provision of strategic, organizational and corporate finance advisory services.
Except as disclosed in this report, since the end of the last financial year, no director has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation with the director or with a firm of which he is a member or with a company in which he has a substantial financial interest.
S-8
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
Share Options
Details of options on unissued shares of the Company are set out below:-
Aggregate | Aggregate | |||||||||||||||
options | Options | |||||||||||||||
granted | exercised/ | Aggregate | ||||||||||||||
since | lapsed since | options | ||||||||||||||
Options | commencement | commencement | outstanding | |||||||||||||
granted | of Scheme to | of Scheme to | as at the | |||||||||||||
during the | the end of | the end of the | end of the | |||||||||||||
financial year | financial year | financial year | financial year | |||||||||||||
Name of participant | under review | under review | under review | under review | ||||||||||||
Directors of the Company | ||||||||||||||||
James A. Norling | 120,000 | 1,856,631 | 117,218 | 1,739,413 | ||||||||||||
Chia Song Hwee | 1,000,000 | 8,688,391 | 10,467 | 8,677,924 | ||||||||||||
Andre Borrel | 70,000 | 757,488 | 363,714 | 393,774 | ||||||||||||
Charles E Thompson | 70,000 | 584,912 | 276,304 | 308,608 | ||||||||||||
Tsugio Makimoto | 70,000 | 437,546 | 128,938 | 308,608 | ||||||||||||
Tay Siew Choon | 70,000 | 584,073 | 23,443 | 560,630 | ||||||||||||
Peter Seah Lim Huat | 95,000 | 420,330 | — | 420,330 | ||||||||||||
Philip Tan Yuen Fah | 95,000 | 265,000 | — | 265,000 | ||||||||||||
Pasquale Pistorio | 70,000 | 130,000 | — | 130,000 | ||||||||||||
Steven Hugh Hamblin | 70,000 | 70,000 | — | 70,000 |
Except as set out above and in the accompanying financial statements:
(i) | during the financial year, there were no options granted by the Company or its subsidiaries to any person to take up unissued shares in the Company or its subsidiaries; | |
(ii) | during the financial year, there were no shares issued by virtue of any exercise of option to take up unissued shares of the Company or its subsidiaries; and | |
(iii) | as at the end of the financial year, there were no unissued shares of the Company or its subsidiaries under option. |
None of the persons to whom options have been granted by the Company have any right to participate by virtue of the option in any share issue of any other company.
S-9
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
Audit Committee
The financial statements, accounting policies and system of internal accounting controls are the responsibility of the Board of Directors acting through the Audit Committee. The Committee met during the year to review the scope of work of the internal auditors and of the statutory auditors, and the results arising therefrom, including their evaluation of the system of internal controls. The Committee reviewed the independence of the statutory auditors, as well as the assistance given by the Company’s officers to the auditors. The announcements of results and the audited financial statements were reviewed by the Committee prior to their submission to the directors of the Company for adoption.
The Committee has recommended to the Board of Directors that the auditors, KPMG, be nominated for re-appointment as auditors at the forthcoming Annual General Meeting of the Company.
Auditors
The auditors, KPMG, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
JAMES A. NORLING
Chairman
Chairman
CHIA SONG HWEE
President and CEO
President and CEO
Singapore
February 26, 2007
S-10
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
STATEMENT BY DIRECTORS
FOR THE YEAR ENDED DECEMBER 31, 2006
FOR THE YEAR ENDED DECEMBER 31, 2006
In our opinion:
(a) | the US GAAP financial statements set out on pages F-2 to F-45, F-47 and F-48 are drawn up so as to give a true and fair view of the consolidated and unconsolidated state of affairs of the Company as at December 31, 2006 and of the consolidated results of the business and consolidated cash flows of the Company for the year ended on that date; and | |
(b) | at the date of this statement there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. |
The Board of Directors has authorized these financial statements for issue on the date of this statement.
On behalf of the Board of Directors
JAMES A. NORLING
Chairman
Chairman
CHIA SONG HWEE
President and CEO
President and CEO
Singapore
February 26, 2007
S-11
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Shareholders of Chartered Semiconductor Manufacturing Ltd:
We have audited the financial statements of Chartered Semiconductor Manufacturing Ltd and subsidiaries (the “Group”) as of December 31, 2006 and 2005, and for each of the years in the three-year period ended December 31, 2006 and have issued our report thereon dated March 9, 2007.
We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion:
(a) | the consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (the “Act”) to give a true and fair view of the state of affairs of the Group and of the Company as at December 31, 2006 and of the statements of operations, comprehensive income (loss), shareholders’ equity and cash flows of the Group for the year ended on that date; and | |
(b) | the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. |
As described in Note 1(q) and Note 17 to the consolidated financial statements, effective January 1, 2006, the Company adopted the fair value method of accounting for stock-based compensation as required by Statement of Financial Accounting Standards No. 123(R),Share-Based Payments. As described in Note 1(c) to the consolidated financial statements, the Company changed its method of quantifying errors in 2006.
KPMG
Certified Public Accountants
Certified Public Accountants
Singapore
March 9, 2007
S-12
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
ADDITIONAL INFORMATION
Information on the employee share option plan are set out on page A-2.
Details of directors’ remuneration are set out on page A-3.
Statistics on the shareholders of the Company are set out on page A-4.
A-1
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
Employee Share Option Plan
Share Options Granted During the Year
Date of | Options | Balance at | Exercise | Exercise | Expiry | |||||||||||||||||
Grant | Granted | Forfeited | Exercised | 31/12/2006 | Period | Price | Date | |||||||||||||||
S$ | ||||||||||||||||||||||
13/02/2006 | 200,000 | — | — | 200,000 | 13/02/2007 to 13/02/2016 | 1.34 | 13/02/2016 | |||||||||||||||
27/03/2006 | 100,000 | — | — | 100,000 | 27/03/2007 to 27/03/2016 | 1.44 | 27/03/2016 | |||||||||||||||
27/06/2006 | 200,000 | — | — | 200,000 | 27/06/2007 to 27/06/2016 | 1.39 | 27/06/2016 | |||||||||||||||
10/07/2006 | 80,000 | — | — | 80,000 | 10/07/2007 to 10/07/2016 | 1.37 | 10/07/2016 | |||||||||||||||
21/07/2006 | 60,000 | — | — | 60,000 | 21/07/2007 to 21/07/2016 | 1.23 | 21/07/2016 | |||||||||||||||
25/08/2006 | 1,120,000 | — | — | 1,120,000 | 25/08/2007 to 25/08/2011 | 1.21 | 25/08/2011 | |||||||||||||||
25/08/2006 | 14,555,950 | 117,500 | — | 14,438,450 | 25/08/2007 to 25/08/2016 | 1.21 | 25/08/2016 | |||||||||||||||
04/09/2006 | 100,000 | — | — | 100,000 | 04/09/2007 to 04/09/2016 | 1.28 | 04/09/2016 | |||||||||||||||
12/09/2006 | 50,000 | — | — | 50,000 | 12/09/2007 to 12/09/2016 | 1.22 | 12/09/2016 | |||||||||||||||
03/10/2006 | 200,000 | — | — | 200,000 | 03/10/2007 to 03/10/2016 | 1.17 | 03/10/2016 | |||||||||||||||
16,665,950 | 117,500 | — | 16,548,450 | |||||||||||||||||||
Directors’ Remuneration
The remuneration of directors of the Company falls within the following ranges:-
Number of Directors | ||||||||
2005 | 2006 | |||||||
S$500,000^ and above | 1 | 1 | ||||||
S$250,000^ to S$499,999^ | — | — | ||||||
Below S$250,000^ | 11 | 12 | ^^ | |||||
12 | 13 | |||||||
^ | The Directors’ remuneration has been translated from United States dollar amounts to Singapore dollars as of December 31, 2006 at an exchange rate of S$1.5418 = US$1.00. | |
^^ | During 2006, two Directors retired from the Board and two new Directors were appointed to the Board. |
A-2
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
Compensation table for directors for services rendered in the year ended December 31, 2006
Options | Exercise | |||||||||||||||||||||||||||||||
Director’s | Granted in | Price | ||||||||||||||||||||||||||||||
Salary(1) | Bonus(2) | Others(3) | Fees(4) | Total | 2006 | S$ | Exercise Period | |||||||||||||||||||||||||
(US$ in thousands, except options data) | ||||||||||||||||||||||||||||||||
Chia Song Hwee | 490 | 469 | 149 | — | 1,108 | 1,000,000 | 1.21 | 25/08/2007 to 25/08/2016 | ||||||||||||||||||||||||
James A. Norling | — | — | — | 108 | 108 | 120,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Andre Borrel | — | — | — | 66 | 66 | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Charles E Thompson | — | — | — | 57 | 57 | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Tsugio Makimoto | — | — | — | 50 | 50 | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Tay Siew Choon | — | — | — | 45 | 45 | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Peter Seah Lim Huat | — | — | — | 51 | 51 | 95,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Philip Tan Yuen Fah | — | — | — | 49 | 49 | 95,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Pasquale Pistorio | — | — | — | 51 | 51 | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Steven Hugh Hamblin(5) | — | — | — | 61 | 61 | 70,000 | 1.21 | 25/08/2007 to 25/08/2011 | ||||||||||||||||||||||||
Sum Soon Lim(6) | — | — | — | 18 | 18 | — | — | — | ||||||||||||||||||||||||
Robert E. La Blanc(6) | — | — | — | 23 | 23 | — | — | — | ||||||||||||||||||||||||
Maurizio Ghirga(5) | — | — | — | 12 | 12 | — | — | — | ||||||||||||||||||||||||
Total as of December 31, 2006 | 490 | 469 | 149 | 591 | 1,699 | |||||||||||||||||||||||||||
Total as of December 31, 2005 | 406 | 194 | 35 | 463 | 1,098 | |||||||||||||||||||||||||||
(1) | Base salary (inclusive of employers’ Central Provident Fund, or CPF). | |
(2) | Bonus paid in February 2007 for services rendered in 2006, inclusive of employer CPF contribution. | |
(3) | Allowances (inclusive of employers’ CPF) and others. | |
(4) | Shareholders’ approval will be sought at our annual general meeting to be held in April 2007 for the payment of our directors’ fees of approximately $591,000 for the fiscal year ended December 31, 2006. | |
(5) | Messrs. Steven Hugh Hamblin and Maurizio Ghirga were appointed as our Directors in January 2006 and November 2006, respectively. | |
(6) | Messrs Sum Soon Lim and Robert E. La Blanc. retired from our Board of Directors in April 2006. | |
(7) | For disclosure purposes, all payments in Singapore dollars are converted to United States dollar amounts based on the exchange rate of S$1.5418 = $1.00 as of December 31, 2006. |
A-3
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
Shareholding Statistics as of January 31, 2007
Twenty Largest Shareholders
Twenty Largest Shareholders
% of Issued | ||||||||||
No. | Name of Shareholder | No. of Shares | Share Capital | |||||||
1 | Singapore Technologies Semiconductors Pte Ltd | 1,295,324,883 | 51.07 | |||||||
2 | DBS Nominees Pte Ltd | 268,957,371 | 10.61 | |||||||
3 | Citibank Nominees Singapore Pte Ltd | 146,669,425 | 5.78 | |||||||
4 | Raffles Nominees Pte Ltd | 109,645,671 | 4.32 | |||||||
5 | DBSN Services Pte Ltd | 89,582,452 | 3.53 | |||||||
6 | HSBC (Singapore) Nominees Pte Ltd | 72,092,732 | 2.84 | |||||||
7 | Morgan Stanley Asia (Singapore) Pte Ltd | 46,789,683 | 1.85 | |||||||
8 | United Overseas Bank Nominees Pte Ltd | 37,542,013 | 1.48 | |||||||
9 | DB Nominees (S) Pte Ltd | 21,099,387 | 0.83 | |||||||
10 | UOB Kay Hian Pte Ltd | 19,651,000 | 0.78 | |||||||
11 | OCBC Securities Private Ltd | 18,557,315 | 0.73 | |||||||
12 | OCBC Nominees Singapore Pte Ltd | 10,884,988 | 0.43 | |||||||
13 | Merrill Lynch (Singapore) Pte Ltd | 8,869,100 | 0.35 | |||||||
14 | Phillip Securities Pte Ltd | 4,804,626 | 0.19 | |||||||
15 | DBS Vickers Securities (Singapore) Pte Ltd | 4,099,000 | 0.16 | |||||||
16 | Macquarie Securities (S) Pte Ltd | 3,722,000 | 0.15 | |||||||
17 | CIMB-GK Securities Pte. Ltd. | 3,657,001 | 0.15 | |||||||
18 | Kim Eng Securities Pte. Ltd. | 3,374,286 | 0.13 | |||||||
19 | ING Nominees (Singapore) Pte Ltd | 3,074,000 | 0.12 | |||||||
20 | Lee Eng Thong David | 3,000,000 | 0.12 | |||||||
GRAND TOTAL | 2,171,396,933 | 85.62 | ||||||||
No. of | ||||||||||||||||||
Size of Holding | Shareholders | % | No. of Shares | % | ||||||||||||||
1 | - 999 | 908 | 2.22 | 272,875 | 0.01 | |||||||||||||
1,000 | - 10,000 | 33,372 | 81.57 | 125,112,184 | 4.93 | |||||||||||||
10,001 | - 1,000,000 | 6,600 | 16.13 | 217,472,329 | 8.58 | |||||||||||||
1,000,001 | and above | 32 | 0.08 | 2,193,315,050 | 86.48 | |||||||||||||
40,912 | 100.00 | 2,536,172,438 | 100.00 | |||||||||||||||
Beneficially Owned(2) | Deemed Interest(4) | |||||||||||||||
Shareholders Holding 5% or More | Number | Percentage | Number | Percentage | ||||||||||||
Temasek Holdings (Private) Limited(3) | 1,510,324,883 | 59.55 | % | 1,513,794,883 | 59.69 | % | ||||||||||
Singapore Technologies Semiconductors Pte Ltd | 1,510,324,883 | 59.55 | % |
Notes: | ||
(1) | The number of ordinary shares listed in this table includes ordinary shares held in the form of ADSs. | |
(2) | Beneficial ownership is determined in accordance with the rules of the SEC and includes voting and investment power with respect to ordinary shares. Unless otherwise indicated, the persons named in the table have sole voting and sole investment control with respect to all ordinary shares beneficially owned. | |
(3) | The 1,510,324,883 ordinary shares beneficially owned by Temasek consists of the 1,510,324,883 ordinary shares held by ST Semiconductors out of which 215,000,000 ordinary shares are subject to the terms of a securities lending agreement entered into by ST Semiconductors with a certain financial institution. ST Semiconductors is a wholly-owned subsidiary of Temasek. Temasek may therefore be deemed to beneficially own the shares owned by ST Semiconductors. | |
(4) | As defined pursuant to the provisions of the Companies Act, Chapter 50, Singapore. |
A-4