Slide 1: ASML 2014 First Quarter Results
ASML Q1 2014 sales in line with guidance gross margin above guidance ASML 2014 First Quarter Results Veldhoven, the Netherlands April 16, 2014
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 16 April 2014 “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, expected sales levels, systems ba
Slide 3: Agenda
Public Slide 3 16 April 2014 • Business summary • Business environment • Outlook • ASML technology status
Slide 4: Business summary
Public Slide 4 16 April 2014 Business summary
Slide 5: Q1 results – highlights
Q1 results – highlights Public Slide 5 16 April 2014 • Net sales of € 1,397 million, 40 litho systems sold, valued at € 1,030 million, net service and field option sales at € 367 million • Gross margin of 43.6% • Positively impacted by product mix and holistic litho sales • Includes negative impact
Slide 6: Net system sales breakdown in value: Q1 2014
Net system sales breakdown in value: Q1 2014 Public Slide 6 Total value is € 1,030 million 16 April 2014 Technology End-Use Memory 67% KrF 17% IDM I line 1% 19% EUV 6% Region Foundry 14% China 23% ArF Immersion 76% Taiwan 13% Sales in Units Rest of Asia 1% 19 17 Korea 38% USA 25% 3 1 0 EUV ArF i ArF
Slide 7: Net Sales
Total net sales M€ Public Slide 7 16 April 2014 6000 5,651 5,245 5000 1,211 4,732 4,508 1,023 1,848 4000 3,768 1,521 1,459 Q1 Net Sales 955 2,954 Q2 3000 1,229 494 1,318 Q3 934 1,176 Q4 697 1,529 2000 1,596 1,228 YTD 930 1,187 844 581 1,069 1000 555 1,452 1,252 1,397 949 919 742 892 277 0 183 2007 2
Slide 8: Net Sales by End-use
Total net sales M€ by End-use Public Slide 8 16 April 2014 6000 5,651 5,245 767 5000 4,732 4,508 1,252 613 930 4000 3,768 1,856 417 Memory Net Sales 944 487 2,954 IDM 3000 2,064 437 366 Foundry 570 844 2,279 358 Service & Options 2000 698 1,596 440 YTD 421 2,585 2,294 588 367 1000 315 2,184 145 1,46
Slide 9: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 9 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 16 April 2014 Net sales 892 1,187 1,318 1,848 1,397** Gross profit 341 500 531 806 610 Gross margin % 38.2% 42.1% 40.3% 43.6% 43.6% Other income* 14 16 17 17 20 R&D costs (185) (200) (244) (253) (279) SG&A costs (6
Slide 10: Cash flows M€
Cash flows M€ Public Slide 10 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 16 April 2014 Net income 96 245 193 481 249 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 45 49 68 68 65 Allowance for obsolete inventory 30 34 48 52 42 Other non-cash items 6
Slide 11: Balance sheets M€
Balance sheets M€ Public Slide 11 Assets Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 16 April 2014 Cash & cash equivalents and short-term investments 2,620 2,351 2,724 3,011 2,998 Net accounts receivable and finance receivables 1,008 883 1,070 1,175 1,177 Inventories, net 2,006 2,372 2,492 2,393 2,548 Other asset
Slide 12: Bookings activity by sector
Bookings activity by sector Public Slide 12 Total value M€ 1,070 16 April 2014 Net booked Foundry 40% • 27 new tools at € 1,055 million • ASP € 39.1 million Foundry IDM 32% 25% • 3 used tools at € 15 million Memory 35% EUV not included Numbers have been rounded for readers’ convenience
Slide 13: Backlog in value per Mar 30, 2014
Backlog in value per Mar 30, 2014 Public Slide 13 Total value M€ 1,939 16 April 2014 Region USA Technology (ship to location) 44% Rest of Asia 3% ArF dry 2% KrF 6% Europe 6% i-line 1% Taiwan China 4% End-use 11% ArF immersion Foundry Korea 91% 33% 32% IDM 35% New Used Total systems systems systems M
Slide 14: Capital return to shareholders
Capital return to shareholders Public Slide 14 16 April 2014 • ASML proposes to again increase dividend by 15% to € 0.61 per ordinary share during its Shareholders meeting 23 April 2014 • Time schedule: Ex-date 25 April, Record date 29 April, Payment date 13 May • In Q1, ASML acquired 2.3 million sh
Slide 15: Business environment
Public Slide 15 16 April 2014 Business environment
Slide 16: Business environment for 2014
Business environment for 2014 Public Slide 16 16 April 2014 • Bit growth forecast mid 40s% driven by SSD drives and smartphones • Demand being met through shrink and capacity expansion • Challenges in qualification of vertical NAND and future node planar technologies, creating litho demand timing un
Slide 17: ASML business status
ASML business status Public Slide 17 16 April 2014 • Net sales in Q2 is expected to be affected by: • Adjustment for system demand from some Logic customers • This means H1 2014 net sales will be around € 3 billion including EUV
Slide 18: Outlook
Public Slide 18 16 April 2014 Outlook
Slide 19: Outlook
Outlook Public Slide 19 16 April 2014 • Q2 net sales around € 1.6 billion, including EUV • Gross margin around 44 - 45%, including EUV • R&D costs of about € 270 million • SG&A costs of about € 85 million • Other income (Customer Co-Investment Program) of about € 20 million • Q3 net sales around € 1
Slide 20: ASML technology status
Public Slide 20 16 April 2014 ASML technology status
Slide 21: EUV – progress toward production insertion
EUV – progress toward production insertion Public Slide 21 16 April 2014 • Multiple customers are qualifying EUV for insertion at the 10 nm logic node • For process development, customers typically require 100 wafers per day, increasing to 500 wafers per day on average for production qualification •
Slide 22: Product highlights
Product highlights Public Slide 22 16 April 2014 • We shipped our fourth NXE:3300B EUV system to the fourth customer and recognized 1 EUV system in Q1 sales • Shipments of our TWINSCAN NXT:1970Ci immersion system continue to ramp, with 24 systems in the backlog at the end of Q1, underscoring the rap
Slide 23: ASML
ASML