Slide 1: ASML 2010 Second Quarter Results
ASML 2010 Second Quarter Results Sales set for new high amid increasing semiconductor fab spend July 14, 2010
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 backlog, IC unit demand, financial results, average selling pr
Slide 3: Agenda
Agenda Business summary Market ASML business update Outlook and summary
Slide 4: Business summary
Business summary
Slide 5: Q2 results - highlights
Q2 results - highlights Net sales of € 1,069 million, 43 systems shipped valued at € 923 million, service revenue at € 146 million Gross margin of 43.0% (record) Operating margin of 27.4% (record) Shipped 25 immersion systems Booked 59 systems, valued at € 1,179 million Backlog increased to € 2,401
Slide 6: Total net sales by quarter 2005-2010
2005 2006 2007 2008 2009 2010 Q1 685 629 949 919 183 742 Q2 763 942 930 844 277 1069 Q3 533 958 934 697 555 Q4 548 1053 955 494 581 2369 Total net sales M€ 2,529 3,582 3,768 Numbers have been rounded for readers' convenience. 2,954 1,596 Guidance: 2010 sales to grow 10 - 15% above historical peak of
Slide 7: Net system sales breakdown in value: Q2 2010
Net system sales breakdown in value: Q2 2010 DRAM NAND Foundry IDM R&D East 43 20 25 12 West North End-use Foundry 25% Numbers have been rounded for readers' convenience. Technology ArF immersion 83% ArF dry 3% Taiwan Korea U.S.A Europe Japan Singapore China Stp 24 33 16 10 8 5 4 West North USA 16%
Slide 8: Consolidated statements of operations
Consolidated statements of operations M€ Numbers have been rounded for readers' convenience.
Slide 9: Key financial trends 2009 - 2010
Key financial trends 2009 - 2010 Consolidated statements of operations M€ Numbers have been rounded for readers' convenience. Numbers have been adjusted for consolidation of variable interest entity.
Slide 10: Cash flows
Cash flows M€ Numbers have been rounded for readers' convenience.
Slide 11: Balance sheets
Balance sheets M€ Numbers have been rounded for readers' convenience.
Slide 12: Backlog as of June 27, 2010
77 % of backlog or € 1,859 million system sales carry shipment dates in the next 6 months Booked 48 new tools at € 1,145 million, 11 used at € 34 million Note: Due to possible customer changes in delivery schedules and to cancellation of orders, our backlog at any particular date is not necessarily
Slide 13: Backlog: value and litho units
Backlog: value and litho units Backlog Jan 04 Apr 04 Jul 04 Oct 04 Jan 05 Apr 05 Jul 05 Oct 05 Jan 06 Apr 06 Jul 06 Oct 06 Jan 07 Apr 07 Jul 07 Oct 07 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 4/9/2009 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Backlog value 993 1357 1800 2053 1691 1377 987 1245 1434 1596 1830 212
Slide 14: Backlog in value per June 27, 2010
Korea Taiwan USA Japan Singapore Europe China 17 31 24 8 2 9 9 DRAM IDM Foundry NAND 44 28 11 0 15 0 immersion KrF 1-line ArF dry 81 16 1 2 Backlog in value per June 27, 2010 Total value M€ 2,401 Technology ArF immersion 81% KrF 16% I-Line 1% Region USA 24% Taiwan 31% Korea 17% Europe 9% Japan 8% En
Slide 15: Bookings activity by sector
DRAM idm foundry NAND 20 41 27 12 Bookings activity by sector - total value M€ 1,179 DRAM idm foundry NAND 20 45 22 13 Bookings in value Bookings in units IDM 45% Foundry 22% DRAM 20% IDM 41% Foundry 27% DRAM 20% NAND 12% NAND 13% For hybrid memory fabs assuming 75% for DRAM, 25% for NAND
Slide 16: Market
Market
Slide 17: More devices, bigger market in mobile
More devices, bigger market in mobile Source: Morgan Stanley, The Mobile Internet Report, Dec 2009 10 1,000 100 10,000 100,000 1,000,000 0 1960 1970 1980 1990 2000 2010 2020 Devices/Users (MM in Log Scale) 1 Minicomputers 10MM+ Units PC 100MM+ Units Desktop Internet 1B+ Units / Users Mobile Internet
Slide 18: Market overview
Market overview Semiconductor unit growth back to historical trend, catch up capacity investments required in all sectors after a long period of slow capacity growth Share of new technology nodes in total semiconductor market accelerating as shrink continues to enable reduced chip cost and increased
Slide 19: Semiconductor revenue outlook
Semiconductor revenue outlook 2010 is +28% and +10% in 2011 Sources: See chart (7/10) Weighted average is based on age of forecast from market institute and respective level of accuracy for the last 3 years. 2010 Semiconductor revenue growth forecast over time 0% 5% 10% 15% 20% 25% 30% 35% Jan-09 Fe
Slide 20: Accelerated technology transitions per sector
Accelerated technology transitions per sector Source: ASML (4/10) DRAM: Expanding 4x nm node production capacity in 2010, preparing for 3x nm node in 2011 NAND: Current advanced volume chip production at 3x nm node, ramping 2x nm node in 2011 Logic: Available production capacity at 6x and 4x nm node
Slide 21: Immersion exposures by sector
NAND 0 1 2 3 4 5 6 7 8 2008 2009 2010 2011 Immersion Exposures Snapshot based on average customer product mix (300mm) and layer stacks Increasing number of critical exposures in sub 50 nm nodes require more immersion tools DRAM 0 1 2 3 4 5 6 7 8 2008 2009 2010 2011 Immersion Exposures LOGIC 0 1 2 3
Slide 22: Capacity additions and technology transitions expected in 2011 for DRAM
Source: ASML Simulation model (6/10) Capacity additions and technology transitions expected in 2011 to meet forecasted DRAM demand* * Litho demand consistent with Gartner bit growth demand forecast of 50% in 2010 and 52% in 2011 Wafer Starts [300 mm equiv. KWSM] DRAM WW monthly wafer production spli
Slide 23: Similar pattern in NAND demand
Similar pattern in NAND demand* NAND WW monthly wafer starts split by node Wafer Starts [300 mm equiv. KWSM] Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 Source: ASML Simulation Model (6/10) * Litho demand consistent with Gartner bit growth demand forecast of 70% in 2010 and 7
Slide 24: Entire Logic/MPU segment has been reducing capacity since 05
Entire Logic/MPU segment has been reducing capacity since 2005! *includes 100, 125, 150 and 200 mm fabs Total (foundry + logic/MPU) capacity: Retirement analysis 300 mm ^ 200 mm (including retirement or transfer) 200 + 300 mm combined (incl. retirement) 0 250 500 750 1000 1250 1500 1750 2000 2250 19
Slide 25: Logic builds capacity to meet forecasted demand
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 Logic builds capacity to meet forecasted demand Logic+DSP+MCU 300mm WW monthly wafer starts split by node Source: ASML Simulation model (6/10) Estimated unit growth 20% in 2010 and 17% in 2011 0 100 200 300 400 500 600 700 800 Wafer
Slide 26: Semiconductor manufacturers need new factories
Semiconductor manufacturers need new factories Publicly announced new fabs with ramp starting in 2010/2011 Hybrid memory (DRAM and NAND) - 1 fab NAND - 2 fabs Foundry/Logic - 5 fabs Under discussion Hybrid memory - 1 fab DRAM - 2 fabs MPU - 1 fab Foundry - 2 fabs
Slide 27: ASML business update
ASML business’ update & ASML
Slide 28: TWINSCAN NXT maturing for volume chip manufacturing
TWINSCAN NXT maturing for volume chip manufacturing Volume semiconductor production started on TWINSCAN NXT at several customers Proven industry leading performance of CD imaging uniformity well below 1 nm and overlay of less than 2 nm Booked 15 systems in Q2 Backlog 38 systems end Q2 Around 500,000
Slide 29: Holistic litho products
Holistic litho products Rapid customer adoption All leading edge scanners sold includes one or more holistic litho components High demand for field upgrades Positive effect on both system and service sales Optimizes manufacturing tolerances while shrinking chip features and provide faster start prod
Slide 30: EUV - NXE:3100 six machines to ship in next months
EUV - NXE:3100 six machines to ship in next 12 months Completing integration tests
Slide 31: Outlook and summary
Outlook and summary
Slide 32: Q3 2010 outlook
Q3 2010 outlook Net sales expected around € 1.1 billion Gross margin expected of about 43% in Q3 R&D is expected at € 137 million net of credits SG&A is expected at € 50 million Q3 bookings levels anticipated around € 1.3 billion ASML 2010 sales expectations revised upward to 10% - 15% above the pea
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