ASML Holding NV · EURONEXT:ASML
ASML Holding NV — Thomas Weisel Partners Technology and Telecom Conference 2009
24 slides from ASML Holding NV's conference presentation, Feb 10, 2009
Slide 1: Thomas Weisel Partners Technology and Telecom Conference 2009
Thomas Weisel Partners Technology and Telecom Conference 2009 Craig DeYoung – VP IR and Corporate Communications San Francisco, California February 10, 2009 / Slide 1
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 sales pric
Slide 3: ASML - the world's largest supplier of lithography equipment
ASML - the world’s largest supplier of lithography equipment Leadership in immersion for volume chip manufacturing Nikon + ASML Canon 65% 35% Market share 2008 (est) Lam Research ASML KLA Tencor Applied Materials Tokyo Top 5 semiconductor Electron equipment suppliers / Slide 3 Source: Semi & ASML
Slide 4: Agenda
Agenda z Market z Driving technology z Downturn Strategy z Summary / Slide 4
Slide 5: Market
Market / Slide 5
Slide 6: Dramatic year-end decline, IC unit growth falls to lowest level since 2001
Dramatic year-end decline, year-on-year IC unit growth falls to lowest level since 2001 IC unit sales comparison 160 16% 2007 Cumm 14% 2008 Cumm 140 12% Growth YTD 120 10% YoY-3mma 8% Growth [%] 100 Units [B] 6% 80 4% 60 2% 40 0% -2% 20 -4% 0 -6% Jul Jun Oct Aug Sep Nov Dec Feb Mar May Jan Apr Sourc
Slide 7: IC inventory and unit sales
Sharp inventory reduction in December, despite of low IC sales, could indicate burn of OEM inventories & good Christmas sales 3mma IC unit sales, inventory and inventory days 25 120 monthly IC inventory based on 3mma IC ASPs IC inventory 3mma IC unit sales / Inventory [Bio. units] 3mma IC 3mma ICuni
Slide 8: Macro and sector trends
Macro and sector trends Litho market visibility remains very low, as customers are implementing severe production cut-backs to avoid large inventories and stabilize chip prices during reduced end demand. Technology transitions are impeded by lack of demand and tight financing z NAND z Investments st
Slide 9: Driving technology
Driving technology / Slide 9
Slide 10: Customer roadmaps and technology solutions
Customer roadmaps and technology solutions Implementation Dates in Volume production 2007 2008 2009 2010 2011 2012 2013 2014 2015 DRAM NGM 65 55 45 38 32 28 (Node = hp) 22 NAND NGM NGM 55 45 32 28 22 (Node = hp) 22 18 MPU 45/80 32/60 22/40 15/30 (Node/hp) LOGIC 45/70 32/50 22/35 15/25 (Node / hp) Si
Slide 11: DRAM operating margins correlated to most advanced technology node
DRAM operating margins well correlated to most advanced technology node 60% 40% Most advanced Operating Margin [% of Sales] 20% node in Q3/08: 0% 5x nm Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 5x nm -20% 6x nm Samsung 6x nm -40% Hynix Micron 6x nm -60% Qimonda 6x nm Elpida 6x nm ProMOS
Slide 12: NAND operating margins correlated to most advanced technology node
NAND op margins correlated to most advanced technology node too 60% Samsung Hynix Micron 40% Toshiba Operating Margin [% of Sales] 20% Volume node in Q3/08: 0% 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4x nm SE -20% 4x nm SE 5x nm SPT -40% -60% 5x nm SE -80% Source: DRAMeXchange (10/08)
Slide 13: Product roadmap strengthening and holistic litho introduction
Product roadmap strengthening and holistic litho introduction supports customers low cost manufacturing drive z Developments continue to support customer road maps z TWINSCAN XTIV lower cost platform transition by end of 2009 z Double patterning supported by TWINSCAN NXT multipurpose platform with s
Slide 14: Normalized litho cost per layer
Technology choice for critical layers: Driven by cost and technology availability Normalized litho cost per layer 3.0 45 nm 32 nm 22 nm 2.5 2.0 1.5 1.0 0.5 0.0 ArFi 193 nm 193 nm EUV 193 nm 193 nm EUV Spacer Litho Spacer Litho DPT DPT DPT DPT Fixed Operating Source Chemical CVD Metrology Etch Clean
Slide 15: Product pipeline
Product pipeline TWINSCAN Double patterning EUV XT:1950Hi (body IV) TWINSCAN NXT:1950 TWINSCAN NXE:3100 Resolution: 38 nm Resolution: 32 nm Resolution: 22 nm and beyond Productivity to 148 wph Productivity to 200 wph Productivity to 140 wh Shipping 2009 Shipping 2009 Shipping 2010 / Slide 15
Slide 16: ASML Holistic litho – A distinct differentiator
ASML Holistic litho – A distinct differentiator Holistic lithography is the integration of wafer lithography, computational lithography and metrology, aimed at optimal imaging through the tuning of the process window, productivity, overlay and critical dimension uniformity (CDU) Holistic lithography
Slide 17: Downturn Strategy
Downturn Strategy / Slide 17
Slide 18: Strategy
Strategy z Keep strategic R&D programs intact and in line with customer roadmaps with focus on high level of product differentiation z Maintain a level of production capacity which allows us to meet changing customer needs without lengthy lead times z Manage for positive cash generation at very low
Slide 19: Reduce cost structure
Reduce cost structure z As announced in December, ASML will have reduced expenses by € 50 million per quarter Q1 ’09 vs Q2 ’08 z Workforce reduction by about 1000 heads (12% total workforce) mainly using our Flex Model z Partial relocation of Customer Support activities from US to Asia z Production
Slide 20: Maximize cash at low revenues
Maximize cash at low revenues z Q4 net cash outflow € 204 million mainly due to sudden revenue drop z Supplier payments made on inventory not shipped in Q4 due to customer delivery push-outs z Back-end loaded shipments for which receivables are due in Q1 z Income tax paid for prior years z Investmen
Slide 21: Solid financial position
Solid financial position z Strong liquidity z Cash & cash equivalents € 1.1 billion z Standby facility € 500 million due 2012 z Conservatively financed z Debt € 600 million 5.75% Notes due 2017 / Slide 21
Slide 22: Summary
Summary / Slide 22
Slide 23: Summary
Summary z No IC production capacity added due to virtual capex freeze z Semiconductor equipment market pickup currently impossible to predict z ASML can ramp production fast with short lead times when market recovers z ASML continues to invest in strategic product development programs z Working capi
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ASML — Thomas Weisel Partners Technology and Telecom Conference 2009 on 6ix