Slide 1: ASML reports Q3 results as guided and remains on track for record 2015 sales
Public ASML reports Q3 results as guided and remains on track for record 2015 sales Two new lithography scanners launched ASML 2015 Third Quarter Results Veldhoven, the Netherlands October 14, 2015
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 October 14, 2015 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 fourth quarter, expected customer demand in spec
Slide 3: Agenda
Public Slide 3 October 14, 2015 Agenda • Investor key messages • Business highlights • Business environment • Outlook • Technology highlights • Financial statements
Slide 4: Investor key messages
Public Slide 4 October 14, 2015 Investor key messages
Slide 5: Investor key messages
Investor key messages Public Slide 5 October 14, 2015 • 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 • AS
Slide 6: Business highlights
Public Slide 6 October 14, 2015 Business highlights
Slide 7: Q3 results
Q3 results Public Slide 7 October 14, 2015 • Q3 sales and gross margin were in line with our guidance, with a strong showing of the memory segment at more than 50% of system sales as well as record service and field option sales • Net sales of € 1,549 million, 44 litho systems sold, valued at € 975
Slide 8: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 8 October 14, 2015 Technology End-Use Region (ship to location) Sales in Units China 14% Rest of Asia KrF I-line Memory Japan 2% 24 ArF Dry 27% 2% 11% Q3’15 3% 56% 14 USA total value 15% — 2 4 € 975 Taiwan 30% million IDM Foundry Korea EUV ArF i ArFdr
Slide 9: Total net sales million € by quarter
Total net sales million € by quarter Public Slide 9 October 14, 2015 7,000 6,000 5,856 5,651 5,245 5,000 1,211 1,494 4,853 YTD 4,732 4,508 Q4 1,023 1,848 4,000 1,549 Net Sales 1,521 1,459 1,322 Q3 3,000 1,229 Q2 1,318 1,176 1,654 1,529 1,644 2,000 Q1 1,228 1,187 1,069 1,000 1,452 1,397 1,650 1,252 7
Slide 10: Total net sales million € by End-use
Total net sales million € by End-use Public Slide 10 October 14, 2015 7,000 6,000 5,856 5,651 5,245 767 4,853 YTD 5,000 4,732 1,614 4,508 1,252 Service & Options 613 930 1,497 Net Sales 4,000 1,856 1,186 Foundry 944 3,000 2,064 366 2,279 831 1,218 IDM 844 2,000 408 Memory 440 2,585 588 1,000 2,184 2
Slide 11: Bookings activity by sector
Bookings activity by sector Public Slide 11 October 14, 2015 Memory 52% New Used Q3’15 total value systems systems € 904 million Units 32 3 IDM Foundry Value M€ 899 5 10% 38% Memory Foundry 38% 23% New Used Q2’15 total value systems systems € 1,523 million Units 41 5 Value M€ 1,494 29 IDM 39% As of
Slide 12: System backlog in value
System backlog in value Public Slide 12 October 14, 2015 Technology End-Use Region (ship to location) Japan ArF Dry I-line China 4% 3% 1% KrF Taiwan 3% 11% 16% Europe Q3’15 Memory Foundry 2% EUV 29% total value 26% 33% Korea € 2,880 36% New Used systems systems million ArF Immersion IDM USA 59% 38%
Slide 13: Capital return to shareholders
Capital return to shareholders Public Slide 13 October 14, 2015 • ASML paid € 302 million in dividend or € 0.70 per ordinary share • Purchased € 426 million worth of shares in Q1, Q2 and Q3 as part of our 2015/2016 approx. € 1 billion share buyback program Dividend history Cumulative capital return
Slide 14: Business environment
Public Slide 14 October 14, 2015 Business environment
Slide 15: Business environment
Business environment Public Slide 15 October 14, 2015 • 2 DRAM fabs continue to ramp capacity • 2x nm DRAM node progressing and 1x nm node development started • Limited NAND litho tool demand awaiting completion of new 3D NAND fabs Memory • 2 new foundry fabs accepting equipment in 2016 • Continued
Slide 16: Outlook
Public Slide 16 October 14, 2015 Outlook
Slide 17: Outlook
Outlook Public Slide 17 October 14, 2015 • Compared to our expectation 3 months ago, foundries are slightly more cautious with their investment plans. As a result, we expect Q4 sales below the Q3 level, but we remain on track for a record year in terms of sales • Despite slightly lower deliveries to
Slide 18: Technology highlights
Public Slide 18 October 14, 2015 Technology highlights
Slide 19: EUV 2015 targets and status at a glance
EUV 2015 targets and status at a glance Public Slide 19 October 14, 2015 Productivity - Target: 1000 wafers per day • Capability proven: 1022 wafers exposed in 24 hours and more than 15,000 wafers in 4-week manufacturing readiness test at customer site • Comparable results achieved using same power
Slide 20: NXE:3350B supports 7 nm logic insertion
NXE:3350B supports 7 nm logic insertion Public Slide 20 with significantly improved overlay and resolution October 14, 2015
Slide 21: EUV expected shipments and revenue recognition
EUV expected shipments and revenue recognition Public Slide 21 October 14, 2015 EUV shipments & revenue 2015 Shipment plan 1 NXE:3300B Revenue 1 Shipment plan 0 NXE:3300B à 3350B Revenue 0 Shipment plan 3 NXE:3350B Revenue 0 • 1 NXE:3300B shipped in Q1, revenue recognized in Q2 • Revenue recognition
Slide 22: Good progress on EUV industrialization roadmap
Good progress on EUV industrialization roadmap Public Slide 22 October 14, 2015 Current status * Includes efficiency and utilization of customers
Slide 23: Q3 product highlights
Q3 product highlights Public Slide 23 October 14, 2015 EUV • First NXE:3350B is being shipped. System achieves an overlay of 1.0 nm, a 50% improvement over the NXE:3300B, and also features a lens with a higher transmission, generating higher throughput from a given EUV power source DUV • Shipment of
Slide 24: Shipping NXT:1980 for volume production of next Logic and DRAM nodes
Shipping NXT:1980 for volume production of next Public Slide 24 Logic and DRAM nodes October 14, 2015 NXT:1980 supports increasingly demanding multiple-patterning performance requirements • 30% improvement in overlay to 1.2 nm • 40% improvement in focus uniformity to less than 10 nm • 10% improvemen
Slide 25: Financial statements
Public Slide 25 October 14, 2015 Financial statements
Slide 26: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 26 October 14, 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net sales 1,322 1,494 1,650 1,654 1,549 Gross profit 578 657 779 754 703 Gross margin % 43.7% 44.0% 47.2% 45.6% 45.4% Other income* 20 20 21 21 21 R&D costs (260) (268) (261) (267) (267)
Slide 27: Cash flows M€
Cash flows M€ Public Slide 27 October 14, 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net income 244 305 403 370 322 Net cash provided by (used in) operating activities 214 409 337 284 420 Net cash provided by (used in) investing activities (24) 77 124 (107) (99) Net cash provided by (used in) fina
Slide 28: Balance sheets M€
Balance sheets M€ Public Slide 28 October 14, 2015 Assets Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Cash & cash equivalents and short-term investments 2,685 2,754 2,838 2,520 2,681 Net accounts receivable and finance receivables 1,336 1,304 1,510 1,589 1,593 Inventories, net 2,677 2,550 2,607 2,592 2,
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