Slide 1: ASML achieves record sales, sees continued strength in H1 2012
ASML achieves record sales, sees continued strength in H1 2012 ASML 2011 Fourth Quarter and 2011 Annual Result Veldhoven, the Netherlands, January 18, 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 our outlook, realization of systems backlog, IC unit demand, financial results, average se
Slide 3: Agenda
Agenda •Business summary •Market •ASML business update •Outlook
Slide 4: Business summary
1 Slide 4 Business’
Slide 5: 2011 — A record year, strength continuing in H1
2011— A record year, strength continuing in H1 •Net sales of € 5,651 million and net income of € 1,467 million or € 3.45 EPS •Annual bookings of € 2,909 million with Q4 of € 710 million •Robustness in lithography business is proven and is expected to continue in 2012 with H1 sales of about € 2.4 bil
Slide 6: Q4 results—highlights
Q4 results—highlights •Net sales of € 1,211 million, 41 systems sold valued at € 993 million, net service and field option sales at € 218 million •Gross margin of 41.0% •Operating margin of 23.9% •Net bookings of € 710 million, 37 systems •Backlog at € 1,733 million, 71 systems •Generated € 132 mill
Slide 7: Total net sales M€
Total net sales M€ 6,000 5,651 5,000 1,211 4,508 4,000 3,768 3,582 1,521 1,459 Q4 955 Q3 sales 1,053 2,954 3,000 Net 494 Q2 934 1,176 1,529 Q1 2,000 958 697 1,596 930 844 942 581 1,069 1,000 555 1,452 949 919 742 629 277 0 183 2006 2007 2008 2009 2010 2011 Numbers have been rounded for readers’ conv
Slide 8: Net system sales breakdown in value: Q4 2011
Net system sales breakdown in value: Q4 2011 Technology 23 Sales in Units KrF 14% 14 ArF ArF Immersion 81% immersion 3 83% I-Line 1% 0 EUV 4% EUV ArF i ArFdry KrF I-Line Japan 7% Foundry 55% USA 24% Taiwan 22% End-use Region NAND 22% IDM 4% DRAM 19% Europe 5% Korea 39% Singapore 1% China 2% Numbers
Slide 9: Consolidated statements of operations M€
Consolidated statements of operations M€ Q3 11 Q4 11 2010 2011 Net sales 1,459 1,211 4,508 5,651 Gross profit 613 496 1,955 2,449 Gross margin % 42.1% 41.0% 43.4% 43.3% R&D costs 150 150 523 590 SG&A costs 56 56 181 218 Income from operations 407 290 1,251 1,641 Operating income % 27.9% 23.9% 27.7%
Slide 10: Key financial trends 2010 – 2011
Key financial trends 2010 – 2011 Consolidated statements of operations M€ Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net Sales 1,521 1,452 1,529 1,459 1,211 Gross profit 685 649 690 613 496 Gross margin % 45.0% 44.7% 45.1% 42.1% 41.0% R&D costs 141 145 145 150 150 SG&A costs 50 54 51 56 56 Income from operations
Slide 11: Cash flows M€
Cash flows M€ Q3 11 Q4 11 2010 2011 Net income 355 285 1,022 1,467 Adjustments to reconcile net income to net cash flows from operating activities; Impairment and obsolescence 23 26 64 73 Depreciation and amortization 43 40 151 165 Deferred income taxes (4) 28 28 63 Other non-cash items 4 4 14 17 Ch
Slide 12: Balance sheets M€
Balance sheets M€ Assets Dec 2010 Dec 2011 Cash and cash equivalents 1,950 32% 2,732 38% Accounts receivable, net 1,124 18% 881 12% Finance receivables, net 42 1% 79 1% Inventories, net 1,497 24% 1,625 22% Other assets 449 7% 545 7% Tax assets 218 3% 191 3% Fixed assets 900 15% 1,208 17% Total asset
Slide 13: Bookings activity by sector—total net value M€
Bookings activity by sector—total net value M€ 710 Bookings in value 100% 80% Foundry 71% 60% 40% NAND 23% 20% IDM 15% - 20% DRAM 9% • Net booked 33 new tools at € 687 million, 4 used at € 23 million Numbers have been rounded for readers’ convenience.
Slide 14: Backlog in value per Dec 31, 2011
Backlog in value per Dec 31, 2011 Total value M€ 1,733 New Used Total Technology systems systems systems Units 61 10 71 KrF 29% Value M€ 1,703 30 1,733 I-Line 2% ASP M€ 27.9 3.0 24.4 ArF dry 5% ArF immersion 64% Japan 8% Singapore 7% USA 28% End-use Europe 8% Foundry 50% China 5% IDM 23% Taiwan 14%
Slide 15: Cash return to shareholders
Cash return to shareholders • ASML proposes to increase dividend by 15% to € 0.46 per ordinary share • ASML increases the existing 1 billion share buyback program to € 1,130 million enabling maximum use of available withholding tax-exempt allowance in 2012 • Bought back 25.7 million shares worth € 7
Slide 16: ASML has returned nearly € 3.3 billion cash in the past years
ASML has returned nearly € 3.3 billion cash in the past 6 years Cummulative Cash Return 2006-2011 3500 Cumulative Cash Return 2006-2011 3000 2500 € Million 2000 1500 1000 500 2006 2007 2008 2009 2010 2011 • Repurchased more than 143 million shares since 2006 representing approx. 30% of outstanding s
Slide 17: Market
Market
Slide 18: Business environment
Business environment • Our customers are continuing their introductions of advanced chip designs with the need to build critical mass capacity for those nodes • This trend is extended from 2011 for the Logic segment and accelerating for NAND • Based upon industry analysts forecasted bit demand, DRAM
Slide 19: Litho performance enhancing options are highly differentiating, highly value adding and growing fast
Litho performance enhancing options are highly differentiating, highly value adding and growing fast • Unique factory and field options improve semiconductor yield and productivity of advanced processes including double patterning • These high value software and hardware solutions have a positive ef
Slide 20: ASML business update
ASML business update
Slide 21: Dual product development strategy continues
Dual product development strategy continues Evolving high productivity NXT Preparing EUV platform for platform optimized for multi volume manufacturing of pass patterning processes critical layers Concurrent development programs to enhance imaging, overlay, productivity and process control on both p
Slide 22: Q4 immersion platform highlights
Q4 immersion platform highlights • Recognized 101 immersion tools in 2011 of which 78 were TWINSCAN NXT:1950i, our most advanced production systems • Overlay accuracy of NXT:1950i improved by 30% on product wafers • Multiple NXT:1950i systems printed more than 4000 wafers in a single day in customer
Slide 23: EUV has arrived worldwide in Fabs
EUV has arrived worldwide in Fabs System 4: System 1 Exposing wafers for Exposing wafers for device development device development System 2 System 5: Exposing wafers for Exposing wafers for device development device development System 3: System 6: Exposing wafers for device development Exposing wafe
Slide 24: EUV in customers fabs
EUV in customers fabs • Wafers exposed on NXE:3100 more than doubled in Q4 to 5300 wafers • Productivity is stable at 5—7 wafers per hour supporting current customer process development work • NXE:3100 demonstrating improved imaging resolution down to 16 nm in single exposure mode
Slide 25: Increasing productivity EUV
Increasing productivity EUV • Parallel developments will be integrated into a single system later in H1 2012 • Increasing raw light power • Improving EUV light transmission • Raising duty cycle • Enhancing conversion efficiency • Progress in each area confirms our roadmap to reach our objective of 6
Slide 26: NXE:3300—Assembly of multiple systems underway
NXE:3300—Assembly of multiple systems underway 11 systems have been ordered by customers System performance NXE:3300B NA 0.33 Resolution 22 nm Overlay 3.0 nm Throughput 125 wph The NXE:3300B is a continuation of the NXE:3100 with • System common modules: stages, handlers, sensors • Changed optical c
Slide 27: Outlook
Outlook
Slide 28: Q1 Outlook
Q1 Outlook •Net sales around € 1.2 billion •Bookings expected above Q4 2011 level (was € 710 million) •Gross margin about 43% •R&D costs at € 145 million •SG&A costs at € 54 million ASML expects H1 2012 net sales of about € 2.4 billion
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