Slide 1: Q2 2005 Results
Q2 2005 Results July 13, 2005
Slide 2: Safe Harbor
Safe Harbor “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semico
Slide 3: Agenda
Agenda Accomplishments Q2 2005 Financial summary Market trends Outlook summary Company focus
Slide 4: Accomplishments Q2 2005
Accomplishments Q2 2005
Slide 5: Financial accomplishments Q2 2005
Financial accomplishments Q2 2005 Growth Revenue growth 24% Q2 2005 vs. Q2 2004 New system ASP increased from M€ 12.3 in Q1 to M€ 14.8 in Q2 Profitability Strong gross margin 39.1% Continued strong operating margin 21.2% Highest-ever reported quarterly net profit of M€ 112 Liquidity Strong net cash
Slide 6: Technology/market accomplishments Q2 2005
Technology/market accomplishments Q2 2005 Technology Delivered TWINSCAN XT:1400i, 3 rd generation immersion tool in Q2 ahead of schedule Announced TWINSCAN XT:1700i, a 1.2 NA immersion tool for volume manufacturing at the 45 nm node Orders in backlog from leading memory and IDM manufacturers Market
Slide 7: Financial summary
Financial summary
Slide 8: Total revenues M€
759 609 1493 329 616 763 Total revenues M€ 2673 1589 1959 1180 1000 1500 2000 2500 3000 2000 2001 2002 2003 H2 H1 Q1 Q2 Q3 Q4 1543 2004 2465 2005 1448
Slide 9: Revenue breakdown: Q2 2005
units Others TWINSCAN I-line KrF ArF Revenue breakdown: Q2 2005 Value per type Value per technology TWINSCAN 90% Others 10% Value per region Value per end-use Foundry 15% Memory 61% IDM 24% KrF 32% ArF 66% I-line 2% U.S. 22% Taiwan 24% Korea 34% China 2% Singapore 8% Europe 7% Japan 3% Numbers have
Slide 10: Profit & Loss statement M€
Q1 05 Q2 05 H1 04 H1 05 Net sales Gross margin Gross margin % R&D costs SG&A costs Operating income Operating income % Net income Net income % Profit & Loss statement M€ 1070 1448 40.0% 39.1% 34.2% 39.6% 21.0% 21.2% 12.6% 21.1% 14.6% 14.6% 8.0% 14.6% 1 SG&A costs include a positive adjustment of M €
Slide 11: Cash flow M€
Q1 05 Q2 05 H1 04 H1 05 Net income Depreciation and amortization Effects of changes in assets and liabilities Cash flow from recurring operations License cost Cash flow from investing activities Cash flow from financing activities Effect of changes in exchange rates on cash Net cash flow Cash flow M
Slide 12: Strong cash generation performance
Strong cash generation performance Net cash = Cash and cash equivalents minus Convertible subordinated bonds
Slide 13: Balance sheet as of June 26, 2005 M€
ASSETS March 2005 June 2005 Cash and cash equivalents Accounts receivable, net Inventories, net Other assets Tax assets Fixed assets LIABILITIES and SHAREHOLDERS’ EQUITY Current liabilities Tax liability Long term debts Shareholders’ equity Balance sheet as of June 26, 2005 M€ 1320 39.4% 1544 44.7%
Slide 14: Backlog: litho units vs. value
Backlog: litho units vs. value New and used systems
Slide 15: Backlog as of June 26, 2005
New Systems Used Systems Total Backlog Units Value ASP Backlog Backlog Backlog as of June 26, 2005 M€ 935 M€ 52 M€ 987 M€ 14.0 M€ 4.0 M€ 12.3 Numbers have been rounded for readers’ convenience 75% of unit backlog carry Q3 + Q4 shipment dates Note: Due to possible customer changes in delivery schedul
Slide 16: Backlog lithography per June 26, 2005
Backlog lithography per June 26, 2005 Total value M€ 987 Value per type Value per technology TWINSCAN 84% Others 16% I-line 6% ArF 67% Value per region Value per end-use U.S. 35% R&D 2% Foundry 27% Memory 30% Taiwan 15% IDM 41% Korea 14% KrF 27% China 8% ROW 6% Europe 20% Japan 2% Numbers have been
Slide 17: Market trends
Market trends Overall : Current capacity overhang (capacity shipped but not yet in production) is approx. 10% of WW production capacity Semiconductor unit growth is improving but under 10% Aggressive product shrinks causing strong interest in TWINSCAN XT:1700i translating into orders Foundry: Utiliz
Slide 18: Outlook summary
Outlook summary ASML backlog supports shipment of 38 tools in Q3 2005. New tool ASP is expected to reach M€ 14.5 and the new+refurbished tool ASP M€ 11.8 Backlog supports gross margin of 35-37% for Q3 ASML expects Q3 orders to be at a higher level than Q2 ASML expects to achieve profitability target
Slide 19: Company focus 2005
Company focus 2005 Technology leadership Maintain R&D budget at the 80 M€ level , net of credit, in Q3 2005 and prepare for additional R&D investments Deliver 4th generation immersion TWINSCAN XT:1700i starting Q1 2006 for ramp in Q2 Finalize development of mid-critical layer tools for introduction
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