Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Bear Stearns 17th Annual Technology Conference (July 2006)
21 slides from Asml Holding Nv's conference presentation, Jul 13, 2006
Slide 1: Bear Stearns 17th Annual Technology Conference
Bear Stearns 17 th Annual Technology Conference New York – June 13, 2006 Craig DeYoung – VP Investor Relations Exhibit 99.9
Slide 2: Safe Harbor
Safe Harbor “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: the matters discussed in this presentation may include forward-looking statements that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and se
Slide 3: ASML Investment Thesis
ASML Investment Thesis Integrated circuit imaging advancements (shrink) drives the semiconductor industry (Moore’s law) ASML is the leading Lithography equipment supplier to semiconductor industry There are multiple drivers for ASML’s growth - industry growth, market share growth and ASP growth ASML
Slide 4: ASML overview
2004/ 2005 2005 2004 IC Fabrication Equipment ASML overview -7.1% 23396.8 25191.0 Total Market +2.7% 2786.9 2712.4 ASML -6.3% 3480.9 3714.0 Tokyo Electron Ltd. -22.9% 4444.7 5768.1 Applied Materials Key facts: Headquarters: Veldhoven, the Netherlands Revenue 2005 ~ €2.5 B Market cap ~ €7.75 B Employ
Slide 5: ASML market share per region
ASML market share per region in ($) WW market share 57% in 2005 Europe 48% North America 62% Asia w/o Japan 77% Japan 8% Source: ASML – market shares are value based in 2005
Slide 6: TWINSCAN creating value in non and mid critical applications
Resolution: 130nm Throughput: 134wph Superior CoO in 300mm KrF XT:400 Resolution: 350nm Throughput: 129wph Lowest CoO in 300mm i-line TWINSCAN ™ creating value in non and mid critical applications Source: ASML – market shares are value based in 2005 ASML i-line market share 29% ASML KrF market share
Slide 7: TWINSCAN XT:1700i Enabling 45nm production
In-line Catadioptric lens design 4 th generation immersion technology High Efficiency Polarized Illuminator TWINSCAN XT:1700i Enabling 45nm production Imaging Resolution 45-nm Overlay System 7-nm Throughput 125 shots 122 wph 42nm 1.2 NA with 26x33mm2 field
Slide 8: TWINSCAN XT:1700i Enabling 45nm production
TWINSCAN XT:1700i Enabling 45nm production ASML wet + dry ArF market share 68% Source: ASML – market shares are value based in 2005
Slide 9: Key financial trends 2005 - 2006
Profit & Loss Statement M€ Q1 0 5 Q2 0 5 Q3 0 5 Q4 0 5 Q1 0 6 Units Sales Gross margin Gross margin % R&D SG&A O perating income Operating income % Net income Net income % Key financial trends 2005 - 2006 Numbers have been rounded for readers’ convenience 40.0 % 39.1 % 37.0 % 37.3 % 40.0 % 21.0 % 21
Slide 10: Mid-Term Market Update
Mid-Term Market Update
Slide 11: Market Status Summary
Market Status Summary 2006 IC Unit growth forecast at 10+% growth y-o-y Inventory at appropriate levels for continuous FAB capacity build up - under scrutiny Utilization rates remain high with a wide range of customers at capacity limits Industry shows sign of maturing as swings appear smaller in am
Slide 12: Semiconductor Units history and forecast
Source: ASML MCC 25% -21% 14% 9% 18% 4% 14% Semiconductor Units history and forecast 2006 Semiconductor consensus growth forecast up to 14% Semiconductor unit Forecast Semiconductor Units Unit Trend
Slide 13: IC unit sales and inventory
IC unit sales and inventory Steady demand - inventory under scrutiny Source: WSTS, VLSIResearch, ASML Last data point: April 2006 IC unit sales and inventory - IC inventory 3mma IC unit Sales 3mma IC unit sales corrected for Inventory
Slide 14: Litho Bookings and Billings as % of Semiconductor Revenue
Source: SEMI, WSTS, ASML Last data point: April 2006 Litho Bookings and Billings as % of Semiconductor Revenue Relative Litho spending in range of control Expose & Write Bookings and Billings as % of Semiconductor sales 0% 1% 2% 3% 4% 5% 6% E&W bookings as % of Semi $Sadj 3MMA E&W billings as % of S
Slide 15: Growth from Multiple independent Segments
Growth from Multiple independent Segments Each Segment with its own investment cycle Flash shrink - 12 to 15 month investment cycle DRAM – closely follows Flash investment cycle Foundries represent classic supply/demand cycle Moore’s law, 18 to 24 months - invest for new product development - volume
Slide 16: Further Growth engines: new fab projects under construction
Further Growth engines: 26 new fab projects under construction: 9 Flash fabs 6 other Memory fabs 11 Foundry or IDM fabs Immersion enabling 55 nm/45 nm next generation node for early 2007 production ramp: Flash next generation High integration/complexity Logic designs STRONG BOOKINGS OUTLOOK IN Q2 20
Slide 17: Long-Term Trajectory
Long-Term Trajectory
Slide 18: Company focus
Company focus Execution on Technology – Cost – Lead time Execute on Leadership: Volume production ramp of the TWINSCAN XT:1700i, hyper NA tool for 45 nm node: 20 - 25 tools to ship in 2006 2 EUV alpha tools mid 2006 R&D investment increased to sustain an accelerated roadmap of 1 node/year Execute on
Slide 19: ASML's opportunity window: natural growth potential
Natural growth potential towards 4-5 B € range ASML’s opportunity window ASML Secular Growth model Source: Average of Dataquest, VLSI Research and ASML fab based simultion model – NOT A FORECAST Average WW litho sales ASML’s potential Status quo Assumption: 9% IC unit Growth/year
Slide 20: ASML is well positioned for value generation
ASML is well positioned for value generation Growth Target of 70% market share Potential to double top line in 5 years (reference 2005) Profitability Track record of last 8 quarters - average 17.1% EBIT margin Improvement through scaling Liquidity Average M €79 cash generation from operations in las
Slide 21: L . SM ) A
L . 7 SM ) A
Asml Holding — Bear Stearns 17th Annual Technology Conference (July 2006) on 6ix