Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Thomas Weisel Partners Technology and Telecom Conference 2009
24 slides from Asml Holding Nv's conference presentation, Feb 11, 2009
Slide 1: Thomas Weisel Partners Technology and Telecom Conference 2009
Thomas Weisel Partners Technology and Telecom Conference 2009 Craig DeYoung - VP IR and Corporate Communications San Francisco, California February 10, 2009
Slide 2: Safe Harbor
Safe Harbor "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average sales pric
Slide 3: ASML - the world's largest supplier of lithography equipment
ASML - the world's largest supplier of lithography equipment Source: Semi & ASML Leadership in immersion for volume chip manufacturing ASML Canon Nikon East 65 35 0 West North ASML 65% Nikon + Canon 35% ASML AMAT TELL KLA East 22 32 25 11 10 West North KLA Tencor ASML Tokyo Electron Lam Research App
Slide 4: Agenda
Agenda Market Driving technology Downturn Strategy Summary
Slide 5: Market
Market
Slide 6: Dramatic year-end decline, year-on-year IC unit growth falls to lowest level since 2001
Dramatic year-end decline, year-on-year IC unit growth falls to lowest level since 2001 Source: WSTS, ASML, Last data point: November 2008 IC unit sales comparison 0 20 40 60 80 100 120 140 160 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Units [B] - -6% - -4% - -2% 0% 2% 4% 6% 8% 10% 12% 14% 16%
Slide 7: Sharp inventory reduction in December, despite low IC sales
Sharp inventory reduction in December, despite of low IC sales, could indicate burn of OEM inventories & good Christmas sales could indicate burn of OEM inventories & good Christmas sales could indicate burn of OEM inventories & good Christmas sales 3mma IC unit sales, inventory and inventory days 3
Slide 8: Macro and sector trends
Macro and sector trends NAND Investments stop with 20% capacity reductions expected in Q1 First signs of chip price recovery Continued ramp of 4x nm and slow 3x nm ramp DRAM Capacity reductions will result in a 30% cut since Q1 '08 matching falling demand First signs of chip price recovery Investmen
Slide 9: Driving technology
Driving technology
Slide 10: Customer roadmaps and technology solutions
Customer roadmaps and technology solutions 2007 2008 2009 2010 2011 2012 2013 2014 2015 DRAM (Node = hp) 65 55 45 38 32 28 NGM 22 NAND (Node = hp) 55 45 32 28 22 NGM 22 NGM 18 MPU (Node/hp) 45/80 32/60 22/40 15/30 LOGIC (Node / hp) 45/70 32/50 22/35 15/25 DPT / EUV EUV Single Expose XT:1950i NXT:195
Slide 11: DRAM operating margins well correlated to most advanced technology node
DRAM operating margins well correlated to most advanced technology node Source: DRAMeXchange (10/08), ASML Marketing (Fab dBase)
Slide 12: NAND op margins correlated to most advanced technology node too
NAND op margins correlated to most advanced technology node too Source: DRAMeXchange (10/08), ASML Marketing (Fab dBase)
Slide 13: Product roadmap strengthening and holistic litho introduction
Product roadmap strengthening and holistic litho introduction supports customers low cost manufacturing drive Developments continue to support customer road maps TWINSCAN XTIV lower cost platform transition by end of 2009 Double patterning supported by TWINSCAN NXT multipurpose platform with substan
Slide 14: Technology choice for critical layers: driven by cost and technology availability
Technology choice for critical layers: Driven by cost and technology availability Reticle cost based on 5000 wafers / mask usage Fixed Operating Source Chemical CVD Metrology Etch Clean Reticle 0.0 0.5 1.0 1.5 2.0 2.5 3.0 ArFi 193 nm Spacer DPT 193 nm Litho DPT EUV 193 nm Spacer DPT 193 nm Litho DPT
Slide 15: Product pipeline
Product pipeline Resolution: 32 nm Productivity to 200 wph Shipping 2009 Double patterning TWINSCAN NXT:1950 EUV TWINSCAN NXE:3100 Resolution: 22 nm and beyond Productivity to 140 wh Shipping 2010 TWINSCAN XT:1950Hi (body IV) Resolution: 38 nm Productivity to 148 wph Shipping 2009
Slide 16: ASML Holistic litho - A distinct differentiator
ASML Holistic litho - A distinct differentiator ASML Holistic litho - A distinct differentiator Holistic lithography is the integration of wafer lithography, computational lithography and metrology, aimed at optimal imaging through the tuning of the process window, productivity, overlay and critical
Slide 17: Downturn Strategy
Downturn Strategy
Slide 18: Strategy
Strategy Keep strategic R&D programs intact and in line with customer roadmaps with focus on high level of product differentiation Maintain a level of production capacity which allows us to meet changing customer needs without lengthy lead times Manage for positive cash generation at very low quarte
Slide 19: Reduce cost structure
Reduce cost structure As announced in December, ASML will have reduced expenses by € 50 million per quarter Q1 '09 vs Q2 '08 Workforce reduction by about 1000 heads (12% total workforce) mainly using our Flex Model Partial relocation of Customer Support activities from US to Asia Production faciliti
Slide 20: Maximize cash at low revenues
Maximize cash at low revenues Q4 net cash outflow € 204 million mainly due to sudden revenue drop Supplier payments made on inventory not shipped in Q4 due to customer delivery push-outs Back-end loaded shipments for which receivables are due in Q1 Income tax paid for prior years Investment in the n
Slide 21: Solid financial position
Solid financial position Strong liquidity Cash & cash equivalents € 1.1 billion Standby facility € 500 million due 2012 Conservatively financed Debt € 600 million 5.75% Notes due 2017
Slide 22: Summary
Summary
Slide 23: Summary
Summary No IC production capacity added due to virtual capex freeze Semiconductor equipment market pickup currently impossible to predict ASML can ramp production fast with short lead times when market recovers ASML continues to invest in strategic product development programs Working capital releas
Slide 24: Slide 24
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