Slide 1: ASML 2016 Second-Quarter Results
Public Strong logic ramp and healthy memory drive ASML second-quarter sales New EUV orders intended for volume manufacturing ASML 2016 Second-Quarter Results Veldhoven, the Netherlands July 20, 2016
Slide 2: Agenda
Public Slide 2 July 20, 2016 Agenda • Investor key messages • HMI acquisition highlights • Business highlights • Business environment • Outlook • EUV highlights • Financial statements
Slide 3: Investor key messages
Public Slide 3 July 20, 2016 Investor key messages
Slide 4: Investor key messages
Investor key messages Public Slide 4 July 20, 2016 • Shrink is the key industry driver supporting innovation and providing long term industry growth • Lithography enables affordable shrink and therefore delivers compelling value for our customers • EUV will enable continuation of Moore’s Law and wil
Slide 5: HMI acquisition highlights
Public Slide 5 July 20, 2016 HMI acquisition highlights
Slide 6: HMI acquisition to enhance Holistic Lithography portfolio
HMI acquisition to enhance Holistic Lithography portfolio Public Slide 6 July 20, 2016 Rationale: • Combination of HMI e-beam metrology technology and ASML Holistic Lithography will create a new class of products for patterning control which improves yield and time to market needed to support extens
Slide 7: ASML holistic lithography future - a new paradigm
ASML holistic lithography future - a new paradigm: Public Slide 7 E-beam added: ASML model guides e-beam to improve coverage of critical July 20, 2016 features; e-beam data enhances ASML model and control of scanner Detailed presentation available on the HMI acquisition on www.asml.com
Slide 8: Business highlights
Public Slide 8 July 20, 2016 Business highlights
Slide 9: Q2 results summary
Q2 results summary Public Slide 9 July 20, 2016 • Net sales of € 1,740 million, including around € 100 million EUV, 46 litho systems sold valued at € 1,254 million, net service and field option sales at € 486 million • Average selling price of € 27.3 million per system • Gross margin of 42.6% • Oper
Slide 10: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 10 July 20, 2016 Technology End-Use Region (ship to location) Sales in Units Japan 4% ArF Dry 3% Rest of Asia 8% I-line 2% China 19 KrF 11% 15% Europe 4% 16 Q2’16 EUV 8% Memory 7 total value 35% Foundry 2 2 40% Taiwan € 1,254 28% USA 21% EUV ArF i ArF
Slide 11: Total net sales million € by quarter
Total net sales million € by quarter Public Slide 11 July 20, 2016 7,000 6,287 6,000 5,856 5,651 5,245 1,434 5,000 1,211 1,494 4,732 Q4 1,023 1,848 4,000 1,549 Net Sales 1,459 1,322 Q3 3,073 YTD 3,000 1,229 Q2 1,318 1,654 1,529 1,644 1,740 2,000 Q1 1,228 1,187 1,000 1,452 1,397 1,650 1,252 1,333 892
Slide 12: Total net sales million € by End-use
Total net sales million € by End-use Public Slide 12 July 20, 2016 7,000 6,287 6,000 5,856 5,651 5,245 767 2,050 5,000 4,732 1,614 1,252 Service & Options 930 Net Sales 4,000 1,856 1,186 Foundry 1,608 3,073 YTD 3,000 2,064 844 2,279 831 IDM 963 514 2,000 Memory 440 915 2,184 588 2,225 1,000 2,115 40
Slide 13: Bookings activity by sector
Bookings activity by sector Public Slide 13 July 20, 2016 Memory 25% New Used Q2’16 total value systems systems Foundry € 1,566 million IDM 57% Units 40 3 18% Value M€ 1,555 11 Memory 14% New Used Q1’16 total value IDM systems systems 19% € 835 million Foundry Units 24 6 67% Value M€ 802 33 Numbers
Slide 14: System backlog in value
System backlog in value Public Slide 14 July 20, 2016 Technology End-Use Region (ship to location) ArF Dry 2% China 5% KrF 7% I-line 1% Japan 2% Rest of Asia 3% Memory Q2’16 18% Taiwan 35% Europe 7% total value EUV € 3,371 ArF 31% Foundry New Used 51% systems systems Immersion IDM million 59% 31% Ko
Slide 15: Capital return to shareholders
Capital return to shareholders Public Slide 15 July 20, 2016 • ASML paid € 446 million in dividend or € 1.05 per ordinary share in Q2 • Purchased € 387 million worth of shares in Q1 and Q2 as part of our 2016/2017 share buyback program for up to € 1.5 billion ◦ Share buyback program will be paused f
Slide 16: Business environment
Public Slide 16 July 20, 2016 Business environment
Slide 17: Business environment
Business environment Public Slide 17 July 20, 2016 • 2x nm DRAM node progressing, 1x nm node initial production starting • 3D NAND technology ramping • X-Point initial production expected to start this year Memory • Tool shipments continue across multiple nodes • 10 nm foundry and MPU volume ramping
Slide 18: Outlook
Public Slide 18 July 20, 2016 Outlook
Slide 19: Outlook
Outlook Public Slide 19 July 20, 2016 • Our guidance for third-quarter: • Q3 net sales approximately € 1.7 billion • Gross margin around 47% • R&D costs of about € 275 million • SG&A costs of about € 90 million • Other income (Customer Co-Investment Program) of about € 23 million • Effective annuali
Slide 20: EUV highlights
Public Slide 20 July 20, 2016 EUV highlights
Slide 21: EUV 2016 targets and achievements
EUV 2016 targets and achievements Public Slide 21 July 20, 2016 Productivity - Target: 1500 wafers per day • More than 1,200 wafers per day (wpd) exposed on NXE:3350B at a customer site • Peak performance near target (1,488 wpd achieved at ASML) Availability - Target: 80% • Five customer systems hav
Slide 22: Financial statements
Public Slide 22 July 20, 2016 Financial statements
Slide 23: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 23 July 20, 2016 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Net sales 1,654 1,549 1,434 1,333 1,740 Gross profit 754 703 660 568 741 Gross margin % 45.6% 45.4% 46.0% 42.6% 42.6% Other income* 21 21 21 23 23 R&D costs (267) (267) (273) (275) (270) SG
Slide 24: Cash flows M€
Cash flows M€ Public Slide 24 July 20, 2016 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Net income 370 322 292 198 354 Net cash provided by (used in) operating activities 284 420 985 (6) 481 Net cash provided by (used in) investing activities (107) (99) (1,078) (183) (24) Net cash provided by (used in)
Slide 25: Balance sheets M€
Balance sheets M€ Public Slide 25 July 20, 2016 Assets Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Cash & cash equivalents and short-term investments 2,520 2,681 3,409 3,138 2,926 Net accounts receivable and finance receivables 1,589 1,593 1,208 1,302 1,362 Inventories, net 2,592 2,537 2,574 2,750 2,715
Slide 26: Forward looking statements
Forward looking statements Public Slide 26 July 20, 2016 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expected customer demand in specified market segments including memory,
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