EX-99.3 4 u92953exv99w3.htm EX-99.3 THE COMPANY'S SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2006. EX-99.3 THE COMPANY'S SUPPLEMENTARY INFORMATION
 

Exhibit 99.3
CHARTERED SEMICONDUCTOR MANUFACTURING LTD
Supplementary Information for the Year Ended December 31, 2006

 


 

CHARTERED SEMICONDUCTOR MANUFACTURING LTD
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
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
                             
    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
                             
    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
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
                                 
    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
                                 
    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
                                 
    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
                 
    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
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
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
CHIA SONG HWEE
President and CEO
Singapore
February 26, 2007

S-10


 

CHARTERED SEMICONDUCTOR MANUFACTURING LTD
STATEMENT BY DIRECTORS
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
CHIA SONG HWEE
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
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
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
     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
Shareholding Statistics as of January 31, 2007
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