Slide 1: ASML 2018 Second-Quarter Results
Public Earnings growth continues, driven by strong sales across full product portfolio Continued EUV progress enables ASML roadmap acceleration ASML 2018 Second-Quarter Results Veldhoven, the Netherlands July 18, 2018
Slide 2: Agenda
Public Slide 2 July 18, 2018 Agenda • Investor key messages • Business highlights • Outlook • Product highlights • Financial statements
Slide 3: Investor key messages
Public Slide 3 July 18, 2018 Investor key messages
Slide 4: Investor key messages
Investor key messages Public Slide 4 July 18, 2018 • Shrink is a key industry driver supporting innovation and providing long term industry growth • Lithography enables affordable shrink and therefore delivers compelling value for our customers • DUV, Holistic Litho and EUV are highly differentiated
Slide 5: Business highlights
Public Slide 5 July 18, 2018 Business highlights
Slide 6: Q2 results summary
Q2 results summary Public Slide 6 July 18, 2018 • Net sales of € 2,740 million, net systems sales valued at € 2,086 million, Installed Base Management sales at € 654 million • Gross margin of 43.3% • Operating margin of 25.2% • Net income as a percentage of net sales of 21.3% • Net bookings of € 1,9
Slide 7: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 7 July 18, 2018 Technology End-Use Region (ship to location) Sales in lithography units I-line 1% ArF Dry 4% Metrology & KrF Inspection 4% China 19 19 Japan 4% 10% 19% Q2’18 Taiwan Rest of Asia 1% total value 18% EMEA 4% 7 8 Logic 5 46% Memory € 2,086
Slide 8: Total net sales million € by End-use
Total net sales million € by End-use Public Slide 8 July 18, 2018 10,000 9,053 8,000 2,679 6,795 Installed Base 6,287 Management Net Sales 6,000 5,856 2,123 1,977 5,025 Logic 1,500 3,406 1,271 Memory 4,000 2,115 2,177 3,170 1,411 2,000 2,968 2,241 2,133 2,343 1,502 0 2014 2015 2016 2017 2018 YTD As
Slide 9: Litho systems bookings activity by End-use
Litho systems bookings activity by End-use Public Slide 9 July 18, 2018 Lithography systems Logic Q2’18 total value 45% New Used Memory € 1,952 million 55% Units 52 7 Lithography systems New Used Q1’18 total value Memory 43% Units 55 7 € 2,442 million Logic 57% Bookings do not include High-NA EUV or
Slide 10: Capital return to shareholders
Capital return to shareholders Public Slide 10 July 18, 2018 • ASML paid € 597 million in dividend or € 1.40 per ordinary share in Q2 • € 269 million worth of shares has been repurchased in Q2 • Around € 2 billion of the 2018/2019 share buyback program remaining Dividend history Capital return 1.6 1
Slide 11: Outlook
Public Slide 11 July 18, 2018 Outlook
Slide 12: Q3 Outlook
Q3 Outlook Public Slide 12 July 18, 2018 • Q3 2018 net sales between € 2.7 billion and € 2.8 billion ◦ Including EUV system revenue around € 500 million • Gross margin between 47% and 48% • R&D costs of about € 395 million • SG&A costs of about € 120 million • Effective annualized tax rate around 14
Slide 13: Product highlights
Public Slide 13 July 18, 2018 Product highlights
Slide 14: EUV commitment to volume manufacturing continues
EUV commitment to volume manufacturing continues Public Slide 14 July 18, 2018 • 4 EUV systems shipped in Q2, 7 revenue Customers recognized commitment to insert EUV • Received 1 EUV order in Q2 in volume manufacturing by • Progress enables ASML roadmap acceleration • Planned shipments of 20 systems
Slide 15: NXT:2000i starting volume shipments
NXT:2000i starting volume shipments Public Slide 15 Increased performance further improves customer value July 18, 2018 Projection lens Alignment sensor Metro set-up Level sensor Wafer heating Dynamic Immersion control improvements Legend: Wafer table New lasers Imaging Overlay Defectivity
Slide 16: Financial statements
Public Slide 16 July 18, 2018 Financial statements
Slide 17: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 17 July 18, 2018 Q2 2017 1 Q3 2017 1 Q4 2017 1 Q1 2018 Q2 2018 Net sales 2,101 2,447 2,561 2,285 2,740 Gross profit 946 1,050 1,156 1,113 1,187 Gross margin % 45.0 42.9 45.2 48.7 43.3 Other income 2 24 24 24 — — R&D costs (313) (315) (317) (357)
Slide 18: Consolidated statements of Cash flows M€
Consolidated statements of Cash flows M€ Public Slide 18 July 18, 2018 Q2 2017 1 Q3 2017 1 Q4 2017 1 Q1 2018 Q2 2018 Net income 466 557 644 540 584 Net cash provided by (used in) operating activities 530 400 1,037 191 759 Net cash provided by (used in) investing activities (754) (72) (533) 182 (62)
Slide 19: Consolidated Balance sheets M€
Consolidated Balance sheets M€ Public Slide 19 July 18, 2018 Assets Q2 2017 1 Q3 2017 1 Q4 2017 1 Q1 2018 Q2 2018 Cash & cash equivalents and short-term investments 2,514 2,678 3,288 3,194 2,980 Net accounts receivable and finance receivables 1,758 2,066 2,096 2,025 1,932 Contract assets — — — 12 28
Slide 20: Forward looking statements
Forward looking statements Public Slide 20 July 18, 2018 This document contains statements relating to certain projections, business trends and other matters that are forward-looking, including statements with respect to expected trends and outlook, bookings, expected financial results and trends, i
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