Slide 1: ASML 2007 Second Quarter Results
ASML 2007 Second Quarter Results Product breakthroughs reinforce market leadership order intake set to rise July 18, 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 ASML overview Immersion Financial performance Financial summary Outlook
Slide 4: ASML overview
ASML overview The world's leading supplier of lithography equipment Key facts: Headquarters: Veldhoven, the Netherlands Revenue 2006 ~ €3.6 B Market cap ~ €10 B Employees Q2 '07 ~ 6200 Employees Q2 '07 ~ 6200 Employees Q2 '07 ~ 6200 Employees Q2 '07 ~ 6200 Employees Q2 '07 ~ 6200 Employees Q2 '07 ~
Slide 5: Immersion
Immersion
Slide 6: First TWINSCAN XT:1900i shipped on schedule early July
First TWINSCAN XT:1900i shipped on schedule early July First tool in the world capable of printing features below 40 nm in volume production in volume production in volume production
Slide 7: TWINSCAN XT:1900i
TWINSCAN XT:1900i Significant volume ramp of TWINSCAN XT:1900i Tool performance meeting full specification including imaging, overlay and productivity resulting in immediate customer sign-off Capable of imaging 36.5 nm features Superior overlay performance, champion data of 4.6 nm over a 3 day perio
Slide 8: Over a million wafers processed on ASML immersion systems
Over 2 Million wafers processed on ASML immersion systems with steep production ramp since April 2007 systems with steep production ramp since April 2007 systems with steep production ramp since April 2007 Wafers exposed on ASML immersion equipment
Slide 9: Immersion leadership continues
KrF ArF dry ArF wet I line East 15 37 42 6 West North Immersion leadership continues 25 immersion machines in backlog valued at € 728 M or 42% of total backlog Received repeat orders from major Japanese customers including multiple XT:1900i machines ASML plans to ship about 35 immersion machines in
Slide 10: Financial performance
Financial performance pssige 10
Slide 11: Strong business performance
Strong business performance Strong Q1 and Q2 top line revenue Solid margin performance with gross margin 41.1%, operating margin 22.2% in Q2 Cash generation from operations € 260 M in Q2 Continued market share gains in targeted areas Solid mid year backlog with short delivery times Robust results in
Slide 12: Capacity expansion in Veldhoven under construction
Capacity expansion in Veldhoven under construction Building expansion on schedule - ready for volume manufacturing by mid 2008 manufacturing by mid 2008 manufacturing by mid 2008
Slide 13: Improving shareholder value
Improving shareholder value Capital structure optimization Successful offering of € 600 M Inaugural Euro bond Upgraded to "Investment Grade" by rating agencies Capital repayment program approved by shareholders ASML will return € 960 million to shareholders (€ 2.04 per share) in combination with a r
Slide 14: Financial summary
Financial summary pssge 14
Slide 15: Total revenues M€
2003 2004 2005 2006 2007 Q1 318 453 685 629 960 Q2 329 616 763 942 935 Q3 370 611 533 958 Q4 526 785 548 1065 Total revenues M€ 526 370 329 318 785 611 616 453 548 533 763 685 629 1,543 2,465 2,529 942 958 1068 3,597 960 935
Slide 16: Revenue breakdown in value: Q2 2007
Revenue breakdown in value: Q2 2007 Type Technology TWINSCAN 93% Other systems 7% Region End-use Foundry 21% Memory 64% IDM 15% KrF 31% i-line 10% Others TWINSCAN Stp 7 93 West North Memory Foundry IDM R&D East 64 21 15 5 West North KrF ArF dry ArF I line East 31 0 59 10 West North ROW U.S.A Europe
Slide 17: Profit & Loss statement
Profit & Loss statement M€ Numbers have been rounded for readers' convenience * Excluding one-off charge for Brion of € 23 million, operating income is € 220 million or 22.9% of sales
Slide 18: Key financial trends 2006 - 2007
Key financial trends 2006 - 2007 Numbers have been rounded for readers' convenience
Slide 19: Cash flow
Cash flow M€ Numbers have been rounded for readers' convenience
Slide 20: Balance sheet as of July 1, 2007
Balance sheet as of July 1, 2007 M€ Numbers have been rounded for readers' convenience
Slide 21: Backlog as of July 1, 2007
Backlog as of July 1, 2007 84 % of backlog or € 1,458 million carry Q3 + Q4 2007 shipment dates Q2 net bookings of 30 systems with a value of € 399 million including 22 new tools with an ASP of € 16.9 million Note: Due to possible customer changes in delivery schedules and to cancellation of orders,
Slide 22: Backlog: litho units and value
Backlog: litho units and value Backlog Jan 03 Mar 03 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04 Oct 04 Jan 05 Apr 05 Jul 05 Oct 05 Jan 06 Apr 06 Jul 06 Oct 06 Jan 07 Apr 07 Jul 07 Used systems 103 93 62 91 124 163 174 183 131 107 80 87 95 106 127 151 163 148 109 Backlog value 1030 870 678 859 993 1357 1800
Slide 23: Backlog lithography in value per July 1, 2007
Backlog lithography in value per July 1, 2007 Total value € 1,745 million Type Technology TWINSCAN 97% Other systems 3% i-line 6% ArF immersion 42 % Region End-use Foundry 13% Memory 50% IDM 37% KrF 15% ArF dry 37 % Numbers have been rounded for readers' convenience KrF ArF dry ArF wet I line East 1
Slide 24: Outlook
Outlook
Slide 25: Q3 2007 outlook
Q3 2007 outlook ASML expects to ship 59 systems ASP for new + refurbished systems expected to be € 13.8 million Gross margin between 40 - 41% R&D is expected at € 120 million net of credit SG&A will remain at € 56 million
Slide 26: Market conditions
Market conditions Overcapacity in memory segment peaked in Q2 Our global capacity utilization model anticipates supply/demand balance by Q4 2007 in the memory segment Low prices of memory chips stimulate DRAM unit sales Memory prices stabilize / improve Receiving capacity expansion inquiries from me
Slide 27: Market conditions - continued
Market conditions - continued 300 mm foundry utilization bottomed in Q1 and is trending upwards Shortage seen in 200 mm foundry production capacity Foundry backlog dropped to 13% of total backlog Foundry tool options in place providing one quarter delivery time for quick capacity additions Continued
Slide 28: 2007 Outlook
2007 Outlook Order intake set to rise from Q2
Slide 29: ASML
4 & ASML Commitment