Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Merrill Lynch Global TMT Conference London 2009
25 slides from Asml Holding Nv's conference presentation, Jun 3, 2009
Slide 1: Merrill Lynch Global TMT Conference London
Merrill Lynch Global TMT Conference London Peter Wennink Executive Vice President and Chief Financial Officer June 3, 2009
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: Agenda
Agenda Market ASML fundamentals intact Strategy for the future Outlook and summary
Slide 4: Market
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Slide 5: Market trends
Market trends Semiconductor equipment demand collapsed in Q1 as customers adjusted production capacity and semiconductor inventory Memory Capacity utilization at NAND and DRAM increased as of February, driven by recovering demand and reduced manufacturing capacity (200 mm equipment) Spot and contrac
Slide 6: DRAM margins: production cut-backs resulted in negative operating margins
DRAM margins: Production cut-backs resulted in negative operating margins, despite of raising ASPs Source: DRAMeXchange (2/09), ASML Most advanced prod. node in Q1/09: 5x nm 5x nm 6x nm 6x nm 7x nm 7x nm
Slide 7: DRAM cash-costs and prices
Source: DRAM Exchange (05/2009) 300 mm cash-costs for 5x nm 1 Gb DRAM between 0.8 & 0.9 USD 300 mm cash-costs for 7x nm 1 Gb DRAM between 1.4 & 1.6 USD 300 mm cash-costs for 6x nm 1 Gb DRAM between 1.0 & 1.2 USD DRAM 1 Gb prices kept increasing during April 5x nm manufacturers are cash profitable
Slide 8: NAND cash-costs and prices
Source: DRAM Exchange (05/2009) 300 mm cash-costs for 4x nm 16 Gb MLC NAND between 1,9 and 2,4 USD 300 mm cash-costs for 5x nm 16 Gb MLC NAND between 2.5 and 3,1 USD NAND MLC 16 Gb mainstream ASPs stabilized above 4x and 5x nm cash-costs
Slide 9: Foundry Top-4 Utilization Performance
Foundry Top-4 Utilization Performance - -100 - -80 - -60 - -40 - -20 0 20 40 60 80 100 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 Time ASML tool ut
Slide 10: Strategy for the future
Strategy for the future Mt tae 0 ASML Uy
Slide 11: Technology developments continue in spite of world wide crisis
* Note: Process development 1.5 ~ 2 years in advance updated 12/08 Year of production start* 1/1/02 1/1/03 1/1/04 1/1/05 1/1/06 1/1/07 1/1/08 1/1/09 1/1/11 1/1/12 1/1/13 1/1/14 1/1/15 1/1/10 Resolution/half pitch, "Shrink" [nm] 20 30 40 50 60 80 200 100 Logic Logic / SRAM 6 Transistor SRAM Cell k1 0
Slide 12: Lithography total market growth opportunity
Source: ASML Lithography total market growth opportunity Historical trends projected Factual until 2008 + forecast for 2009 IC trend-based simulation 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 WW Litho Demand Simulation (2006 - 2015)
Slide 13: Bottom-up scenario: Four engines of growth
Bottom-up scenario: Four engines of growth Even when assuming slow chip unit growth of 4% (due to Moore's Law slowdown and slower electronics consumption in the West) More DRAM in expanding consumer electronics. Additional €1.2B Litho revenue over 5 years. NAND/DRAM penetration rises to 10% of hard
Slide 14: Bottoms-up scenario: significant litho demand indicated
Source: ASML Bottoms-up scenario: significant litho demand indicated Conservative scenario (4% unit growth) + emerging growth markets Factual until 2008 + forecast for 2009 IC trend-based simulation 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 2006 2007 2008 2009 2010 2011 2012 2013 20
Slide 15: ASML confirms its strategy
ASML confirms its strategy The lithography market offers significant growth potential; the company target of EUR 5 billion in annual revenues is still achievable, timing depending on macro economic circumstances ASML key success factor is unmatched R&D innovation which will remain unaffected in the
Slide 16: ASML fundamentals intact
ASML fundamentals intact
Slide 17: Cash flow positively impacted by working capital reduction
Cash flow positively impacted by working capital reduction and cost structure improvements Working capital reduced by more than € 300 million (excl cash & cash equivalents) Account receivables down by € 172 million Current tax assets decreased by € 88 million Inventories reduced by € 62 million Net
Slide 18: Balance sheet position secured
Balance sheet position secured Cash position € 1.2 billion within company target of € 1.0 - 1.5 billion Standby facility € 500 million available until 2012 € 600 million bond due not until 2017 Secured additional credit facility of € 200 million with the European Investment Bank
Slide 19: Committed to R&D
Committed to R&D New product introduction on track ASML deliberately uses its financial strength to uniquely continue aggressive R&D spending in strategically development programs to ensure timely introduction of next node production solutions Successful cost savings in R&D through efficiency improv
Slide 20: TWINSCAN NXT - improved overlay and productivity
TWINSCAN NXT - improved overlay and productivity Suitable for double patterning 32 nm and beyond x, y : 1.6nm, 1.7nm overlay x, y : 1.9nm, 1.8nm overlay Platform capability >200 wafers per hour Excellent overlay shown during SPIE
Slide 21: EUV pre-production systems ready in 2010
EUV pre-production systems ready in 2010 First full field 28 nm dense lines imaged
Slide 22: Outlook and summary
Outlook and summary
Slide 23: Q2 2009 outlook
Q2 2009 outlook ASML expects net sales between € 210 - 230 million Gross margin expected at about 9% reflecting very low coverage of fixed costs R&D is expected at € 118 million net of credit SG&A is expected at € 41 million Recent immersion orders and current quote activity give us comfort in a boo
Slide 24: Summary
Summary First signs of technology purchases pick-up from current very low run rate are now visible These technology purchases could translate into ASML revenue levels in support of technology transitions between € 400 and € 500 million per quarter within H2 2009 ASML plans for "cash from operations
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Asml Holding — Merrill Lynch Global TMT Conference London 2009 on 6ix