Slide 1: ASML 2017 Second-Quarter Results
Public Industry strength and EUV demand drive expected sales growth of about 25 percent in 2017 Current business trends likely to continue into 2018 8 additional EUV orders in Q2 2017 - EUV HVM adoption inflection begins ASML 2017 Second-Quarter Results Veldhoven, the Netherlands July 19, 2017
Slide 2: Agenda
Public Slide 2 July 19, 2017 Agenda • Investor key messages • Business highlights • Outlook • Product / Market highlights • Financial statements
Slide 3: Investor key messages
Public Slide 3 July 19, 2017 Investor key messages
Slide 4: Investor key messages
Investor key messages Public Slide 4 July 19, 2017 • Shrink is a key industry driver supporting innovation and providing long term industry growth • Lithography enables affordable shrink and therefore delivers compelling value for our customers • EUV will enable continuation of Moore’s Law and will
Slide 5: Business highlights
Public Slide 5 July 19, 2017 Business highlights
Slide 6: Q2 results summary
Q2 results summary Public Slide 6 July 19, 2017 • Net sales of € 2,101 million, net systems sales valued at € 1,384 million, net service and field option sales at € 717 million • Gross margin of 45.0% • Operating margin of 26.4% • Net bookings of € 2,375 million, including 8 new EUV systems • Backlo
Slide 7: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 7 July 19, 2017 Technology End-Use Region (ship to location) Sales in lithography units ArF Dry 3% I-line 2% Metrology & 16 KrF China 6% 14 Inspection 6% Taiwan 9% Memory Japan 1% Q2’17 54% 27% Rest of Asia 1% 7 total value EUV EMEA 4% 2* 3 € 1,384 Ar
Slide 8: Total net sales million € by End-use
Total net sales million € by End-use Public Slide 8 July 19, 2017 8,000 7,000 6,795 6,287 6,000 5,856 2,123 5,245 1,977 Installed Base 5,000 1,500 1,157 Management (Service Net Sales 4,045 and Field options) 4,000 1,278 Foundry 1,659 2,215 1,445 3,000 2,143 837 IDM 518 2,000 955 995 440 Memory 271 1
Slide 9: Bookings activity by sector
Bookings activity by sector Public Slide 9 July 19, 2017 Memory 40% Lithography systems Q2’17 total value New Used € 2,375 million Units 49 6 IDM Foundry 20% 40% Memory Lithography systems 39% New Used Q1’17 total value Units 52 3 € 1,894 million IDM Foundry 18% 43% As per January 1, 2017 our Net bo
Slide 10: System backlog in value
System backlog in value Public Slide 10 July 19, 2017 End-Use Region (ship to location) Technology ArF Dry 3% China 4% KrF 7% Rest of Asia 1% I-line 1% Memory Taiwan Q2’17 ArF Metrology & 25% 28% EMEA 10% Immersion total value 35% Inspection 1% Lithography systems € 5,351 IDM Foundry New Used USA mi
Slide 11: Capital return to shareholders
Capital return to shareholders Public Slide 11 July 19, 2017 • ASML paid € 517 million in dividend or € 1.20 per ordinary share in Q2 • 2016-2017 share buyback program will resume in Q3 Dividend history Capital return 1.4 8,000 1.2 1.0 6,000 Dividend Dividend (€) € million 0.8 4,000 Share buyback 0.
Slide 12: Outlook
Public Slide 12 July 19, 2017 Outlook
Slide 13: Q3 Outlook
Q3 Outlook Public Slide 13 July 19, 2017 • Q3 2017 net sales around € 2.2 billion ◦ EUV revenue approximately € 300 million • Gross margin around 43% • R&D costs of about € 315 million • SG&A costs of about € 105 million • Other income (Customer Co-Investment Program) of about € 24 million • Effecti
Slide 14: 2017 Outlook
2017 Outlook Public Slide 14 July 19, 2017 • Full year 2017 revenue expected to grow about 25%, driven by our entire products and service portfolio • Memory, especially driven by DRAM, expected to grow about 50% year on year, supporting wafer capacity additions in NAND and lithography enabled cost r
Slide 15: Product / Market highlights
Public Slide 15 July 19, 2017 Product / Market highlights
Slide 16: All EUV key performance specifications demonstrated
All EUV key performance specifications demonstrated Public Slide 16 Stable configuration enables accelerated availability improvements going forward July 19, 2017 • 8 additional NXE:3400B system orders Customers received in Q2, with 6 orders from one show commitment to insert EUV in customer for use
Slide 17: EUV layer adoption - logic 7nm example
EUV layer adoption - logic 7nm example Public Slide 17 Addressing majority of critical layers at initial insertion July 19, 2017 Layer Active 2D pattern (1 EUV exposure) Gate LI Metal layers Contact or Metal 0 patterning Via 0 types 1D pattern Metal 1 (1 ArFi spacer exposure Via 1 + 1 EUV cut exposu
Slide 18: ASML and HMI update
ASML and HMI update Public Slide 18 July 19, 2017 • ASML and HMI company and product integration progressing well towards expanding integrated Holistic Litho roadmap • HMI e-beam for voltage contrast being used extensively in volume production by memory customers • HMI e-beam for physical defects be
Slide 19: ASML / Chinese IC industry relationships deepen as new fab demand comes into view
ASML / Chinese IC industry relationships deepen as Public Slide 19 new fab demand comes into view July 19, 2017 • Continued sales growth over the last 5 years by both domestic Chinese as well as non domestic companies • In discussion with 2 logic and 3 memory domestic customers with Litho market opp
Slide 20: Financial statements
Public Slide 20 July 19, 2017 Financial statements
Slide 21: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 21 July 19, 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Net sales 1,740 1,815 1,907 1,944 2,101 Gross profit 741 834 901 925 946 Gross margin % 42.6% 46.0% 47.2% 47.6% 45.0% 1 Other income 23 23 23 24 24 R&D costs (270) (273) (287) (315) (313) S
Slide 22: Consolidated statements of Cash flows M€
Consolidated statements of Cash flows M€ Public Slide 22 July 19, 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Net income 354 396 524 452 466 Net cash provided by (used in) operating activities 481 (3) 1,193 (168) 530 Net cash provided by (used in) investing activities (24) (484) (2,498) 150 (755) N
Slide 23: Consolidated Balance sheets M€
Consolidated Balance sheets M€ Public Slide 23 July 19, 2017 Assets Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Cash & cash equivalents and short-term investments 2,926 4,313 4,057 3,836 2,514 Net accounts receivable and finance receivables 1,362 1,593 1,264 1,426 1,758 Inventories, net 2,715 2,697 2,78
Slide 24: Forward looking statements
Forward looking statements Public Slide 24 July 19, 2017 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to expected trends and outlook, including expected customer insertion of EUV in volume manufactur
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