Slide 1: Announcing a customer co-investment program aimed at accelerating innovation
Announcing a customer co-investment program aimed at accelerating innovation Veldhoven, the Netherlands, July 9, 2012
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 development of EUV and 450mm technologies and timing for introduction of new systems and b
Slide 3: Agenda
Agenda •Customer co-investment program •Technology roadmap acceleration •Enhanced long term opportunity for ASML, customers and employees •Synthetic share buy back program
Slide 4: Customer co-investment program
Customer co-investment program
Slide 5: Customer co-investment program
Customer co-investment program • Acceleration of development of next generation technology • Accelerate ASML’sdevelopment of EUV technology beyond the current generation • Brings forward the development of 450mm wafer technology • ASML customer co-investment strategy through minority equity investme
Slide 6: For the greater good
For the greater good Scaling and manufacturing efficiency Microprocessor transistor counts Shrink roadmap Silicon demand by wafer size
Slide 7: Customer co-investment program: program details
Customer co-investment program Program details • Enable investments in ASML by its largest customers • Commit to funding € 1.38 billion of R&D activities for the next 5 years • Approx. € 0.9 billion in EUV and approx. € 0.5 billion in 450mm • Issue of up to an aggregate 25% minority equity stake to
Slide 8: Intel first customer to participate
Customer co-investment program Intel first customer to participate •Intel makes commitment R&D to spending for future programs, together with equity investments in ASML • Intel commits to funding € 829 million of R&D activities for the next 5 years • Approx. € 0.3 billion in EUV and approx. € 0.5 bi
Slide 9: Shareholder benefits
Shareholder benefits •Co-investment program shares development risk with customers •Accelerates future development program—EUV and 450mm tools •Improves visibility on revenues, margins and earnings •No share dilution on a net basis through a synthetic share buy back consisting of •Cash payment per s
Slide 10: Customer benefits
Customer benefits •Reduces risks associated with technology roadmaps and times to market •Ensures closer collaboration with ASML •Accelerated availability of both EUV and 450mm technology •Industry timelines on 450mm introduction now well aligned •Results of these development programs will be availa
Slide 11: ASML—Efficient program and capital management
ASML—Efficient program and capital management •Significant long-term contribution to R&D funding •Pursue aggressive execution of both EUV and 450mm programs simultaneously •Participation by other customers would enhance benefits by further reducing development risk and uncertainty •Acceleration of c
Slide 12: Technology roadmap acceleration
Technology roadmap acceleration
Slide 13: EUV and 450mm tool development rationale
EUV and 450mm tool development rationale •Both essential in ensuring the •EUV technology provides a shrink capability down to 7nm resolution and beyond •450mm tools improves the economic benefit of future shrinks •Using 450mm wafers, factories double the wafer capacity at a reduced cost per chip •Re
Slide 14: ASML enhanced development roadmap
ASML enhanced development roadmap
Slide 15: Enhanced long term opportunity for ASML, customers and employees
Enhanced long term opportunity for ASML, customers and employees
Slide 16: ASML long term opportunity
ASML long term opportunity •Drive incremental revenue growth •Transition of wafer size results in additional equipment capex as 300mm business continues and 450mm fabs are introduced •Strength of customer partnerships leading technology •Future generation EUV production tools will capture more criti
Slide 17: Synthetic share buy back program
Synthetic share buy back program
Slide 18: Synthetic Share Buyback
Synthetic Share Buyback • ASML plans to issue shares to Intel and potentially other customers • ASML plans to return the cash it receives for these shares to the current shareholders by means of a synthetic share buyback • A synthetic share buyback is a tax-efficient way of returning capital and inv
Slide 19: Synthetic Share Buyback: capital repayment + reverse stock-split
Synthetic Share Buyback Capital repayment + reverse stock-split This synthetic share buyback will occur once only and requires 5 subsequent changes to the Articles of Association, all taking place on the same day: Step 1 • Creation of special ”for share shares class of “M customer shares • Conversio
Slide 20: Example
Example: • Assume 25% of new shares are issued at € 39.91 • This means a 3 for 4 stock-split and a capital repayment of € 9.98 per share (see table next slide) • A shareholder owning 4 shares before the transaction, will own 3 shares plus € 39.92 in cash after the transaction. Slide 20 |
Slide 21: Capital repayment per share and stock-split ratio
Capital repayment per share and stock-split ratio at various percentages of total new shares issued Issuance Price is € Share Issuance 15% 20% 25% Stock-Split ratio 17 for 20 4 for 5 3 for 4 Cash return per share € 5.99 € 7.98 € 9.98 • Assumes a purchase price for all investments of € 39.91 per shar
Slide 22: Synthetic Share Buyback – indicative timeline
Synthetic Share Buyback – indicative timeline Slide 22 |
Slide 23: Summary
Summary • Customer co-investment program aims to accelerate innovation through long-term strategic partnerships with key customers that benefits customers, employees and shareholders • Closer collaboration and risk sharing among industry leaders will allow for better coordination of technology roadm
Slide 24: ASML
AHML