Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — FY2006 Earnings Presentation
39 slides from Asml Holding Nv's earnings presentation, Jan 17, 2007
Slide 1: ASML 2006 Annual and 4th Quarter Results
ASML 2006 Annual and 4th Quarter Results Strong company on a growth trajectory January 17, 2007
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 document may include forward-looking statements that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semico
Slide 3: Agenda
Agenda z ASML overview z Financial summary z Q1 2007 outlook z ASML growth trajectory / Slide 3
Slide 4: ASML overview
ASML overview The world’s leading supplier of lithography equipment Key facts: Leaders in Innovation Headquarters: Veldhoven, the Netherlands Revenue 2006 ~ €3.6 B Market cap ~ €9 B Employees 5600 Customer satisfaction ASML TWINSCAN Customers Serving 80% of the top 20 IC manufacturers in the world /
Slide 5: Financial summary
Financial summary / Slide 5 \ as ASML
Slide 6: Revenues
Total revenues M€ - record high 4000 3,597 3500 3000 1068 2,529 2,465 Q4 Revenues 2500 548 1,959 785 958 Q3 2000 1,543 533 Q2 820 1500 Q1 611 526 763 942 1000 351 370 616 500 609 329 685 629 318 453 179 0 2002 2003 2004 2005 2006 / Slide 6
Slide 7: Revenue breakdown: Q4 2006
Revenue breakdown: Q4 2006 Value per type Value per technology i-line Other systems 8% 5% KrF 22% ArF TWINSCAN 70% 95% TWINSCAN Others units ArF KrF i-line Units 61 11 33 19 20 Value per region Value per end-use Taiwan IDM Europe 26% 23% 7% Korea 28% U.S. Memory Foundry 23% ROW Japan China 54% 23% 4
Slide 8: Profit & Loss statement M€
Profit & Loss statement M€ 2005 2006 Net sales 2,529 3,597 Gross profit 974 1,462 Gross margin % 38.5 % 40.6% R&D costs 324 387 SG&A costs 201 205 Operating income 449 871 Operating income % 17.8% 24.2% Net income 311 625 Net income % 12.3% 17.4% Numbers have been rounded for readers’ convenience /
Slide 9: Key financial trends 2005 - 2006
Key financial trends 2005 - 2006 Profit & Loss Statement M€ Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Units 47 51 72 71 72 Sales 548 629 942 958 1068 Gross profit 204 252 381 391 439 Gross margin % 37.3% 40.0% 40.4% 40.8% 41.1% R&D 82 87 92 100 107 SG&A 47 50 51 51 52 Operating income 75 114 238 239 280 Operati
Slide 10: Cash flow M€
Cash flow M€ Q3 06 Q4 06 2006 Net income 172 206 625 Depreciation and amortization 30 32 104 Changes in tax assets and liabilities 62 (45) 28 Effects of changes in inventories 60 51 (30) Effects of changes in other assets and (322) 120 (250) liabilities Cash flow from operations 2 364 478 Cash flow
Slide 11: Balance sheet as of Dec 31, 2006 M€
Balance sheet as of Dec 31, 2006 M€ ASSETS Oct 2006 Dec 2006 Cash and cash equivalents 1,581 41 % 1,656 42 % Accounts receivable, net 675 17 % 673 17 % Inventories, net 837 22 % 809 20 % Other assets 194 5% 182 5% Tax assets 267 7% 342 9% Fixed assets 301 8% 289 7% TOTAL ASSETS 3,855 100% 3,951 100%
Slide 12: 2006: Record execution
2006: Record execution Growth z 7 new customers in Japan, Taiwan and US z Revenue up 42% to record € 3.6 billion z Record net income of € 625 million Profitability z Cost of goods reduction reflected in improved gross margin z SG&A decreasing as a percentage of sales, currently at 6% Cash z Inventor
Slide 13: ASML repurchased 8.3% of outstanding shares
ASML repurchased 8.3% of outstanding shares Outstanding shares 1 Jan. 2006 [millions] 485 Exercised employee stock options 2 Issuance of shares redemption convertible loan 31 Share buy back redemption convertible loan (15) Share buy back (26) Total share buy back (41) Outstanding shares 31 Dec. 2006
Slide 14: Q1 2007 outlook
Q1 2007 outlook z ASML expects to ship 70 systems z ASP for new + refurbished systems expected to be € 12.0 million z Gross margin will range between 40 - 41% z R&D is expected to increase to € 115 million net of credit to strengthen technology leadership and enabling lithography growth z SG&A is ex
Slide 15: ASML growth trajectory
ASML growth trajectory / Slide 15
Slide 16: ASML's short to mid term growth trajectory supported by
ASML’s short to mid term growth trajectory supported by: z Positive semiconductor market forecasts by industry analysts z Strong position in immersion products z Further market share gains z Strong backlog and healthy bookings prospects / Slide 16
Slide 17: 2007 Semiconductor revenues projected to grow
2007 Semiconductor revenues projected to grow Average 2007 Semiconductor revenue 2007 Semiconductor forecast revenue forecast growth 8.5% WSTS (Nov 06) VLSI Research (Dec 06) SIA (Nov 06) Semico (Dec 06) ML (Nov 06) iSupply (Nov 06) IC Insights (June 06) Dataquest (Dec 06) 0% 2% 4% 6% 8% 10% 12% / S
Slide 18: Litho growth outpacing other semiconductor fab equipment growth
Litho growth outpacing other semiconductor fab equipment growth Growth in 2007 12 10 10 8 5 % 6 4 3 3 2 0 IC units Capex Fab equipment Litho investments equipment investments Source : Average of VLSI Research, Gartner Dataquest / Slide 18
Slide 19: Immersion in 2007: 20 immersion machines in backlog
Immersion in 2007 20 immersion machines in backlog H1 2007: z XT:1700i systems shipping for 5x nm node flash to leading manufacturers H2 2007: z XT:1900i systems for 4x nm node flash manufacturing and broad based R&D z Shipments expected to over 10 TWINSCAN XT:1900i customers First shipment mid 2007
Slide 20: Immersion is imminent for volume manufacturing
Immersion is imminent for volume manufacturing AMD & IBM Semiconductor International Online January 1, 2007 AMD and IBM announced that they had successfully completed their development work on the first-generation immersion lithography process Immersion production with XT:1700i already started at se
Slide 21: ASML Market Share (revenue)
ArFi Market share through technology 12” & ArF 60% • Reliable introduction KrF & ASML Market Share (revenue) Step & Scan 50% • Lead time reduction • Cost effective 40% 8” & i-line 30% 6” & early i-line 20% 10% 0% 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Source: ASML, SEMI (2006 da
Slide 22: ASML market share growth to continue in 2007
ASML market share growth to continue in 2007 Worldwide litho shipments by region 3,000 ASML worldwide market share 2,500 at 61% through Nov. 2006 2,000 M Euro Others 1,500 ASML 1,000 500 0 2005 2006 2005 2006 2005 2006 2005 2006 Asia non Japan US Europe Japan Source: ASML / Slide 22
Slide 23: Backlog as of Dec 31, 2006
Backlog as of Dec 31, 2006 New Systems Used Systems Total Backlog Backlog Backlog Units 153 10 163 Value M€ 2,120 M€ 26 M€ 2,146 ASP M€ 13.9 M€ 2.6 M€ 13.2 • 67% of unit backlog carry H1 2007 shipment dates • Q4 net bookings of 84 systems with a value € 1,089 million including 74 new tools with an A
Slide 24: Backlog: litho units and value
Backlog units 0 20 40 60 80 100 120 140 160 180 200 Mar 03 / Slide 24 Jun 03 Sep 03 Dec 03 Mar 04 Jun 04 Used systems Sep 04 Dec 04 Mar 05 Jun 05 New systems Backlog: litho units and value Sep 05 Dec 05 Mar 06 Jun 06 Backlog value Sep 06 Dec 06 0 500 1000 1500 2000 2500 Backlog value M€
Slide 25: Backlog lithography per Dec 31, 2006
Backlog lithography per Dec 31, 2006 Total value € 2,146 million Value per type Value per technology TWINSCAN ArF immersion I-line 95% 26 % 11% KrF Other systems ArF dry 24% 5% 39 % Value per region Value per end-use Europe Taiwan 17% Memory 9% 64% U.S. IDM Korea 21% 29% 22% Singapore China 9% Japan
Slide 26: Trends by sector
Trends by sector z Flash is starting volume manufacturing using immersion in early 2007 z DRAM healthy growth in capacity expansion, no overheating observed z Foundries invest anticipating growth in 2007, utilization in factories is bottoming z IDM normal investment level supporting shrink including
Slide 27: 2007 Outlook
2007 Outlook z Industry Analysts forecast average 10% IC unit growth in 2007 and about € 5.5 billion ($ 6.8 Billion) litho investment in 2007 (source: Gartner Dataquest and VLSI Research) z ASML’s record current backlog of € 2.1 billion suggests strong H1 2007, sustained by planned new Flash lines,
Slide 28: ASML's long term growth trajectory
ASML’s long term growth trajectory supported by: z R&D investment z Litho market natural growth z Business scope expansion 2007 – A step towards € 5B revenues by 2010 / Slide 28
Slide 29: Innovation: TWINSCAN leadership
Innovation: TWINSCAN leadership XT:1900i provides the best resolution, productivity and overlay Proven single barrel catadioptric “40nm and below” lens design ArFi lens: 1.35 NA Improved Overlay 6 nm Highest Productivity Fastest Scanning Stages: 131 wph @ 125 exposures / wafer / Slide 29
Slide 30: R&D Spend
R&D spend (M€) per quarter is supporting continued technology leadership R&D 11% of revenue in 120 2006 100 R&D Spend 80 60 40 20 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 Source: ASML / Slide 30
Slide 31: Ensuring continuous market share growth through technology leadership
Ensuring continuous market share growth through technology leadership z Commodity products z 500 TWINSCAN systems shipped z High throughput i-line TWINSCAN with improved overlay performance - as per new node needs z Immersion z Significant customer experience accumulated on 36 installed systems z Ra
Slide 32: Lithography Equipment - a growing market with three major value drivers
Lithography Equipment - a growing market with three major value drivers z Accelerating roadmap forcing more complexity… z ASP increase not fully compensated by throughput z …and more processing layers with z Standard shrink technology yield challenges z Alternative solutions (Spacer, 3D, Vertical ga
Slide 33: Half Pitch Resolution (nm)
Lithography Equipment - a growing market with three major value drivers z Accelerating roadmap forcing more complexity… Half Pitch Resolution (nm) 200 AT:850 100 Logic 80 DRAM AT:1200 XT:1400 NAND 60 ASML Product XT:1700i 40 Introduction XT:1900i DPT EUV 20 2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘
Slide 34: More layers: growing lithography expenditure
Lithography Equipment - a growing market with three major value drivers Fabsize z …and more processing layers Memory - Flash 70kwsm Memory - Dram 50kwsm Logic/Foundry 30kwsm As shrink continues more litho layers and more immersion layers are needed…. 45 500 40 450 35 400 Revenue 30 350 L a y e rs 25
Slide 35: Expose & Write as % of Total Equipment
…leading to “Litho content” growth Litho share of equipment approaching 20% level ! Expose & Write Equipment Sales as % of Total Equipment Sales Expose & Write as % of Total Equipment Expon. (Expose & Write as % of Total Equipment) 12 per. Mov. Avg. (Expose & Write as % of Total Equipment) 26% Expos
Slide 36: ASML's vision – Value expansion with smart lithography
ASML’s vision – Value expansion with smart lithography IC design Reticle enhancement techniques GROWTH Design verification Litho Value added by Lithography GROWTH up/down stream feedback In-Situ metrology GROWTH Inspection & lab metrology / Slide 36
Slide 37: ASML to acquire Brion Technologies
ASML to acquire Brion Technologies z Brion is a venture-backed startup based in Santa Clara, California, founded in 2002 z More than 120 employees z 8 out of top 10 chip makers are Brion customers z Brion is the largest, fastest growing pure-play in computational lithography z Products include Litho
Slide 38: ASML's growth trajectory
ASML’s growth trajectory z Natural market growth, as lithography needs per node are increasing: z More tools for more layers z Higher ASP to address complexity z Market share growth, as ASML strengthens technology leadership fueled by R&D accumulated experience and scale z Scope broadening, as ASML
Slide 39: Commitment
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