Slide 1: ASML 2015 Second Quarter Results
ASML 2015 Second Quarter Results July 15, 2015 ASML reports Q2 results in line with guidance on track for record 2015 sales Veldhoven, the Netherlands Public
Slide 2: Forward looking statements
15 July 2015 Slide 2 Public Forward looking statements This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expectations for the third quarter and second half of 2015, backlog, expe
Slide 3: Agenda
• Investor key messages • Business highlights • Business environment • Outlook • Technology highlights • Financial statements Agenda 15 July 2015 Slide 3 Public
Slide 4: Investor key messages
Investor key messages 15 July 2015 Slide 4 Public
Slide 5: Investor key messages
Investor key messages • Shrink is the key industry driver supporting innovation and providing long term industry growth • Moore’s Law will continue and be affordable • Lithography enables affordable shrink and therefore delivers compelling value for our customers • ASML’s strategy of large R&D inves
Slide 6: Business highlights
Business highlights 15 July 2015 Slide 6 Public
Slide 7: Q2 results
15 July 2015 Slide 7 Public Q2 results • Net sales of € 1,654 million, 41 litho systems sold, valued at € 1,134 million, net service and field option sales at € 520 million • Average selling price of € 27.7 million per system • Gross margin of 45.6% • Operating margin of 25.3% • Net bookings of € 1,
Slide 8: Net system sales breakdown in value
15 July 2015 Slide 8 Public Net system sales breakdown in value Foundry 40% Memory 47% IDM 13% End-Use Numbers have been rounded for readers’convenience Korea 27% Taiwan 31% USA 22% Region (ship to location) Japan 13% Technology ArF Immersion 79% KrF 12% i-line 2% ArF dry 1% Q2’15 total value € 1,13
Slide 9: Total net sales by quarter
742 1,452 1,252 892 1,397 1,650 1,069 1,529 1,228 1,187 1,644 1,654 1,176 1,459 1,229 1,318 1,322 1,521 1,211 1,023 1,848 1,494 0 1000 2000 3000 4000 5000 6000 7000 2010 2011 2012 2013 2014 2015 Ne t S a le s 3,304 YTD 15 July 2015 Slide 9 Public Total net sales million € by quarter Numbers have bee
Slide 10: Total net sales by end-use
2,585 2,184 935 1,489 2,225 1,208 366 844 588 440 831 301 944 1,856 2,279 2,064 1,186 872 613 767 930 1,252 1,614 923 0 1000 2000 3000 4000 5000 6000 7000 2010 2011 2012 2013 2014 2015 Ne t S a le s 3,304 YTD 15 July 2015 Slide 10 Public Total net sales million € by End-use Numbers have been rounded
Slide 11: Bookings activity by sector
15 July 2015 Slide 11 Public Bookings activity by sector IDM 39% Memory 38% Foundry 23% Q2’15 total value € 1,523 million New systems Used systems Units 41 5 Value M€ 1,494 29 IDM 16% Memory 53% Foundry 31% Q1’15 total value € 1,028 million New systems Used systems Units 35 5 Value M€ 998 30 As of Q
Slide 12: Systems backlog in value
New systems Used Systems Units 68 13 Value M€ 2,946 69 15 July 2015 Slide 12 Public Systems backlog in value Backlog definition see page 11 Numbers have been rounded for readers’convenience End-use Foundry 26% Memory 37% IDM 37% Technology ArF immersion 58% KrF 14% ArF dry 3% i-line 1% EUV 24% Q2’15
Slide 13: Capital return to shareholders
Capital return to shareholders • ASML paid € 302 million in dividend or € 0.70 per ordinary share • Purchased € 285 million worth of shares in Q1 and Q2 as part of our 2015/2016 approx. € 1 billion share buy back program 15 July 2015 Public Slide 13 0.25 0.20 0.20 0.40 0.46 0.53 0.61 0.70 0 0.1 0.2
Slide 14: Business environment
Business environment 15 July 2015 Slide 14 Public
Slide 15: Business environment
Business environment 15 July 2015 Public Slide 15 • 2 new foundry fabs accepting equipment in H2 • Stable business throughout 2015 • Modest tool shipments at 28nm node continue • 20nm node conversions to 16nm node started • 16/14nm nodes shipments ongoing • Next node process development accelerating
Slide 16: Outlook
Outlook 15 July 2015 Slide 16 Public
Slide 17: Outlook
15 July 2015 Slide 17 Public Outlook • Q3 net sales between € 1.5 and €1.6 billion • Gross margin around 45% • R&D costs of about € 275 million • SG&A costs of about € 90 million • Other income (Customer Co-Investment Program) of about € 20 million • Effective tax rate approx. 11%
Slide 18: Technology highlights
Technology highlights 15 July 2015 Slide 18 Public
Slide 19: EUV program: priorities for 2015
EUV program: priorities for 2015 15 July 2015 Slide 19 Public In 2015, we will focus on: • Improving stability and availability • Continuing progress on productivity • Shipping the NXE:3350B, our 4th generation EUV tool
Slide 20: EUV 2015 targets and status at a glance
EUV 2015 targets and status at a glance • 1022 wafers exposed in 24 hours at customer site • Upgrade to same configuration completed at multiple customer sites, in progress at others • 130W dose-controlled source power demonstrated at ASML Productivity – Target: 1000 wafers per day • 55% availabilit
Slide 21: Shipment, orders, factory opened
15 July 2015 Slide 21 Public Shipment, orders, factory opened New EUV factory opened, enabling an output of 24 systems in 2017 NXE:3300B #7 passed site acceptance NXE:3300B #8 recognized in Q2 revenue = Total of 8 NXE:3300B installed 6 orders received in Q2 for EUV systems as part of volume purchase
Slide 22: EUV shipments and revenue recognition
15 July 2015 Slide 22 Public EUV shipments and revenue recognition EUV shipments & revenue 2015 Shipment plan 2 Revenue 1 Shipment plan 0 Revenue 0 Shipment plan 5 Revenue 0 NXE:3300B NXE:3300B → 3350B NXE:3350B • 1 NXE:3300B shipped in Q1, revenue recognized in Q2
Slide 23: Customers have different decision processes for new technology adoption
Customers have different decision processes for new technology adoption → differences in timing of “WHEN” Time T ec h n o lo g y A d o p tio n 15 July 2015 Public Slide 23 Technology champion in R&D Value demonstration “Should we go for this?” Manufacturing readiness? Tough criteria, entrance hurdle
Slide 24: Q2 product highlights DUV and Holistic Litho
15 July 2015 Slide 24 Public Q2 product highlights DUV and Holistic Litho DUV • We have demonstrated a 30% overlay improvement with our TWINSCAN NXT:1980Di system, which will ship this year. The system will also offer a step up in productivity from 250 to 275 wafers per hour • Average availability o
Slide 25: Holistic Lithography: Image, Measure, Model
Holistic Lithography: Image, Measure, Model • Adoption continues across all market segments • YieldStar installed base now >250 systems • EUV will continue to drive Holistic Litho as we move to 7nm node & below • Annual revenue growth >20%, on track towards goal ~1B€ by 2017 Public Slide 25 Image NX
Slide 26: Financial statements
Financial statements 15 July 2015 Slide 26 Public
Slide 27: Consolidated statements of operations
Consolidated statements of operations M€ Numbers have been rounded for readers’convenience * Customer Co-Investment Program (CCIP) ** As of Q2 2015, our systems backlog and net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting as of the NX
Slide 28: Cash flows
15 July 2015 Slide 28 Public Cash flows M€ * Free cash flow is defined as net cash provided by (used in) operating activities minus investments in Capex (Purchase of PPE and intangibles), see US GAAP Consolidated Financial Statements Numbers have been rounded for readers’convenience Q2 14 Q3 14 Q4 1
Slide 29: Balance sheets
Balance sheets M€ Numbers have been rounded for readers’convenience Assets Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Cash & cash equivalents and short-term investments 2,711 2,685 2,754 2,838 2,520 Net accounts receivable and finance receivables 1,429 1,336 1,304 1,510 1,589 Inventories, net 2,616 2,677 2,550 2
Slide 30: ASML
ASML