Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Investor Day (November 2024)
23 slides from Asml Holding Nv's investor day presentation, Nov 18, 2024
Slide 1: Business model and capital allocation strategy
Public November 14, 2024 Roger Dassen Business model and capital allocation strategy ASML Investor Day Veldhoven, The Netherlands November 14, 2024 Chief Financial Officer Small Talk 2024 Exhibit 99.7
Slide 2: Business model and capital allocation strategy: key messages
Public Business model and capital allocation strategy Our continued investments in technology leadership have created significant shareholder value. Investments create value We expect substantial growth opportunities in this decade Based on different market and technology scenarios, we see an opport
Slide 3: Historical shareholder value creation
Public November 14, 2024 Page 5 Continuing growth Continued shareholder value creation Historical shareholder value creation
Slide 4: Technology leadership comes from strategic investments enabling cost-effective innovations
Public ASML’s technology leadership comes from strategic investments that enable cost-effective innovations for our customers Organic growth through investments in R&D and Capex Strategic acquisitions and investments in • Supply chain for technology and capacity (Carl Zeiss SMT, Berliner Glas) • New
Slide 5: EPS has grown at a CAGR of 22% since 2014
Public ASML’s EPS has grown at a CAGR of 22% since 2014 driven by revenue growth, improved margins and share buybacks Page 7 Systems (€bn) Gross margin (%)Installed Base Management (€bn) EPS (€) • Systems revenue grew at a 18% CAGR since 2014 • Installed Base Management* grew at a 14% CAGR since 201
Slide 6: ASML created significant shareholder value over 2010-2024
Public ASML created significant shareholder value over the period 2010-2024* Page 8 Total Shareholder Return (TSR) annualized compounded : • ASML (Nasdaq) : 23% • Semiconductor index - SOX 22% • Technology index - Nasdaq 17% Source: Bloomberg (Total Shareholder Return: index = 2010) Total Shareholde
Slide 7: Continuing growth
Public November 14, 2024 Page 9 Continued shareholder value creation Historical shareholder value creation Continuing growth
Slide 8: Estimate growth of our Installed Base business: model assumptions
Public Page 10 Estimate growth of our Installed Base business Installed Base Management Model assumptions Start with end markets Translate to worldwide litho spending, convert to ASML share Litho spend Convert to wafer demand: High – Moderate – Low scenarios Wafer demandEnd markets Scenarios →High →
Slide 9: Semi sales expected to grow at 9% CAGR and surpass $1tn by 2030
Public Semi sales expected to grow at 9% CAGR (2025-2030) & surpass $1tn by 2030 Sharp increase in growth for Servers, Datacenters & Storage offsets most of moderation elsewhere Page 11 Smartphone ($bn) Wired & wireless Infrastructure ($bn) Automotive ($bn) Personal Computing ($bn) Servers, Datacent
Slide 10: Wafer capacity driven by wafer demand and strategic considerations
Public Wafer capacity will be driven by both wafer demand & strategic considerations As a result, we expect 5-8% extra overall capacity by 2030 on top of demand-driven additions Page 12 • Tech sovereignty leading to less efficient use of the installed capacity as countries/regions aim to (re)gain fa
Slide 11: Advanced logic & DRAM shrink expected to drive further layers & spending
Public Advanced logic & DRAM shrink is expected to drive further layers & spending Increase in exposures, combined with wafer volume translates into double-digit EUV spending CAGRs Page 13 Advanced Logic: Average # of Total EUV Exposures* EUV litho spending CAGR (2025-2030): 10-20% November 14, 2024
Slide 12: Market share assumptions: EUV 100%, ArF immersion 90%, Dry 65%
Public Market share assumptions: EUV 100%, ArF immersion 90%, Dry 65% Model assumptions 2030 Page 14 Advanced Logic (≤ 7nm) DRAM NAND Market Low - High Transistor CAGR (2025-2030): • Low: 28% • High: 36% Bit CAGR (2025-2030): • Low: 18% • High: 26% Bit CAGR (2025-2030): • Low: 22% • High: 30% Techno
Slide 13: Installed Base Management growth opportunity
Public Installed Base Management* growing installed base provides opportunity for double digit growth in service and upgrades • Growing installed base population • Service: move to value-based services • Upgrades: design for extendibility, enabling performance upgrades in the field Page 15 * Install
Slide 14: Total sales opportunity between 44B€ and 60B€ by 2030
Public We still model a total sales opportunity between 44B€ and 60B€ by 2030 Total sales opportunity (in €bn) Page 16 * M&I : Metrology & Inspection ** Installed Base Management equals our net service and field option sales High scenario EUV sales 32 32 Non-EUV sales (Litho and M&I*) 15 15 Installe
Slide 15: Gross margin development potential FY25 – FY30
Public Gross margin development potential FY25 – FY30 Page 17 • EUV: volume growth and increased productivity in 0.33 NA systems positively impacting the overall GM. The volume growth in the 0.55 NA systems has a small dilutive effect on the overall GM • Non-EUV: GM increase is predominantly driven
Slide 16: ASML updated financial model 2030
Public ASML updated financial model 2030 Rounding differences may occur as these numbers / percentages are rounded to 1 decimal * Installed Base Management equals our net service and field option sales ** Cash Conversion Cycle is the sum of: accounts receivable, finance receivables, contract liabili
Slide 17: Flexible workforce
Public November 14, 2024 Page 19 Flexible workforce Employees Additional flexibility through the hour bank and other measures D&E Fix labor and other costs D&E Flex labor and farm-out Own personnel Flex workers Outsourced R&D R&D spend Systems Cost of Goods (COG) at Standard, composition Majority of
Slide 18: Continued shareholder value creation
Public November 14, 2024 Page 20 Historical shareholder value creation Continuing growth Continued shareholder value creation Page 20
Slide 19: Our approach to capital allocation and financing
Public Page 21 Our approach to capital allocation and financing Focused investment in our business supported by a strong and flexible balance sheet Capital allocation • Investments to execute ASML’s long term roadmap • Cash returns to shareholders • Sustainable dividend per share that will grow over
Slide 20: Our approach to capital allocation: continued shareholder value creation
Public Page 22 Our approach to capital allocation Continued shareholder value creation R&D Capex Cumulative share buyback Cumulative dividend *ASML contribution for Zeiss SMT capex included as of 2017 ** 2024E is estimate for the FY2024 figures Focused investment in our business through R&D, Capex C
Slide 21: Business model and capital allocation strategy: key messages
Public Business model and capital allocation strategy Our continued investments in technology leadership have created significant shareholder value. Investments create value We expect substantial growth opportunities in this decade Based on different market and technology scenarios, we see an opport
Slide 22: Forward Looking Statements
Public Forward Looking Statements This document and related discussions contain statements that are forward-looking within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements with respect to our strategy, plans and expected trends, including trends in end m
Slide 23: Thank you
Public November 14, 2024 Page 25 THANK YOU