Exhibit 99.1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON SUPPLEMENTARY INFORMATION
The Board of Directors and Shareholders
Chartered Semiconductor Manufacturing Ltd:
Chartered Semiconductor Manufacturing Ltd:
We have audited and reported separately herein on the consolidated balance sheets of Chartered Semiconductor Manufacturing Ltd and subsidiaries as of December 31, 2008 and 2007, and the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2008.
Our audits were made for the purpose of forming an opinion on the consolidated basic financial statements of Chartered Semiconductor Manufacturing Ltd and subsidiaries taken as a whole. The supplementary information included in Schedule 1 is presented as required by the Singapore Companies Act (the “Act”). Such information has been subjected to the auditing procedures applied in the audits of the consolidated basic financial statements and, in our opinion:
(i) | is fairly stated in all material respects in relation to the consolidated basic financial statements taken as a whole; | |
(ii) | is properly drawn up in accordance with the provisions of the Act, so as to give a true and fair view of the unconsolidated state of affairs as at December 31, 2008 and the changes in unconsolidated equity of the year ended on that date. |
KPMG LLP
Public Accountants and
Certified Public Accountants
Public Accountants and
Certified Public Accountants
Singapore
February 27, 2009
February 27, 2009
F-54
Schedule 1
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
SUPPLEMENTARY PARENT COMPANY ONLY BALANCE SHEETS — in US Dollars
As of December 31
In thousands
SUPPLEMENTARY PARENT COMPANY ONLY BALANCE SHEETS — in US Dollars
As of December 31
In thousands
2007 | 2008 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 690,664 | $ | 461,264 | ||||
Restricted cash | 45,042 | 69,509 | ||||||
Marketable securities | 2,822 | 950 | ||||||
Receivables, net | ||||||||
Trade | 102,571 | 122,618 | ||||||
Others | 54,658 | 34,721 | ||||||
Receivables from related parties | 213,302 | 93,668 | ||||||
Inventories | 165,477 | 141,161 | ||||||
Other investments | 89,290 | 19,634 | ||||||
Prepaid expenses | 5,248 | 4,381 | ||||||
Other current assets | 13,355 | 13,392 | ||||||
Total current assets | 1,382,429 | 961,298 | ||||||
Loan to subsidiary | 687,000 | 687,000 | ||||||
Investment in subsidiaries | 213,461 | 457,056 | ||||||
Investment in associated companies | 82,157 | 88,977 | ||||||
Technology licenses and other intangible assets, net | 62,699 | 42,110 | ||||||
Property, plant and equipment, net | 2,117,797 | 2,353,935 | ||||||
Other non-current assets | 113,243 | 51,849 | ||||||
Total assets | $ | 4,658,786 | $ | 4,642,225 | ||||
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERENCE SHARES AND SHAREHOLDERS’ EQUITY | ||||||||
Payables | ||||||||
Trade | $ | 89,245 | $ | 88,574 | ||||
Fixed asset purchases | 84,635 | 178,448 | ||||||
Payables to related parties | 11,138 | 7,611 | ||||||
Short-term debt | 270,000 | — | ||||||
Income tax payable | 5,118 | — | ||||||
Current installments of long-term debt and capital lease obligations | 77,948 | 161,583 | ||||||
Other current liabilities | 96,996 | 92,164 | ||||||
Total current liabilities | 635,080 | 528,380 | ||||||
Long-term debt and capital lease obligations, excluding current installments | 1,490,421 | 1,663,390 | ||||||
Other non-current liabilities | 48,163 | 46,375 | ||||||
Total liabilities | 2,173,664 | 2,238,145 | ||||||
Convertible redeemable preference shares | 255,837 | 265,879 | ||||||
Ordinary share capital | 2,710,006 | 2,706,244 | ||||||
Accumulated deficit | (425,128 | ) | (511,618 | ) | ||||
Accumulated other comprehensive loss | (55,593 | ) | (56,425 | ) | ||||
Total shareholders’ equity | 2,229,285 | 2,138,201 | ||||||
Commitments and contingencies | ||||||||
Total liabilities, convertible redeemable preference shares and shareholders’ equity | $ | 4,658,786 | $ | 4,642,225 | ||||
F-55
Schedule 1
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
NOTES TO THE SUPPLEMENTARY PARENT COMPANY ONLY
BALANCE SHEETS — in US Dollars
As of December 31
In thousands
NOTES TO THE SUPPLEMENTARY PARENT COMPANY ONLY
BALANCE SHEETS — in US Dollars
As of December 31
In thousands
The movements in the total shareholders’ equity of the Company (parent company only) for the years ended December 31, 2007 and 2008 are as follows:
Accumulated | Total | |||||||||||||||||||
Other | Share- | |||||||||||||||||||
Ordinary Share | Accumulated | Compre- | holders’ | |||||||||||||||||
Capital | Deficit | hensive Loss | Equity | |||||||||||||||||
No. | $ | $ | $ | $ | ||||||||||||||||
Balance at January 1, 2007 | 2,535,896 | 2,704,215 | (536,910 | ) | (56,251 | ) | 2,111,054 | |||||||||||||
Net income | — | — | 111,782 | — | 111,782 | |||||||||||||||
Other comprehensive income | — | — | — | 658 | 658 | |||||||||||||||
Accretion to redemption value of convertible redeemable preference shares | — | (9,663 | ) | — | — | (9,663 | ) | |||||||||||||
Issuance of shares arising from share-based awards | 3,730 | 2,576 | — | — | 2,576 | |||||||||||||||
Employee share-based compensation | — | 4,793 | — | — | 4,793 | |||||||||||||||
Non-employee share-based compensation | — | 25 | — | — | 25 | |||||||||||||||
Issuance of call option | — | 8,060 | — | — | 8,060 | |||||||||||||||
Balance at December 31, 2007 | 2,539,626 | 2,710,006 | (425,128 | ) | (55,593 | ) | 2,229,285 | |||||||||||||
Net loss | — | — | (86,490 | ) | — | (86,490 | ) | |||||||||||||
Other comprehensive loss | — | — | — | (832 | ) | (832 | ) | |||||||||||||
Accretion to redemption value of convertible redeemable preference shares | — | (10,042 | ) | — | — | (10,042 | ) | |||||||||||||
Issuance of shares arising from share-based awards | 3,574 | 1,871 | — | — | 1,871 | |||||||||||||||
Employee share-based compensation | — | 4,432 | — | — | 4,432 | |||||||||||||||
Non-employee share-based compensation | — | (23 | ) | — | — | (23 | ) | |||||||||||||
Balance at December 31, 2008 | 2,543,200 | 2,706,244 | (511,618 | ) | (56,425 | ) | 2,138,201 | |||||||||||||
In order to comply with the requirements of the Singapore Companies Act (the “Act”), to the extent not waived by exemption orders of the Accounting and Corporate Regulatory Authority, the Company must present the supplementary financial information above. This information represents the parent company only balance sheet of the Company, which accounts for the Company’s equity method investments and investments in subsidiaries at cost, and the movements in the total shareholders’ equity (parent company only) of the Company.
F-56