Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Shareholder Meeting (March 2005)
39 slides from Asml Holding Nv's shareholder meeting presentation, Mar 24, 2005
Slide 1: Annual General Shareholders Meeting
Annual General Shareholders Meeting Presented by Henk Bodt, Chairman Supervisory Board Eric Meurice, President and CEO Peter Wennink, EVP and CFO Veldhoven, March 24, 2005 / Slide 1
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 z ASML accomplishments 2004 z Financial summary z Market environment and ASML outlook z Business strategy / Slide 3
Slide 4: ASML accomplishments 2004
ASML accomplishments 2004 Eric Meurice, CEO / Slide 4
Slide 5: Market momentum: ASML unit shipments
Market momentum Europe USA Korea Taiwan RoA ASML revenue share (%) 400 80.0% 350 70.0% Value share % 300 60.0% ASML unit shipments 250 50.0% 200 40.0% 150 30.0% 100 20.0% 50 10.0% 0 0.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Excludes the impact of SVG acquisition in years prior
Slide 6: Market accomplishments 2004
Market accomplishments 2004 z Gained market share momentum z Reinforced market position with top semiconductor manufacturers z Supplied to 80% of the top 20 semiconductor company spenders z Made further inroads in Japan, gaining our fourth customer - Matsushita z Achieved top rating in VLSI Research
Slide 7: Technology accomplishments 2004
Technology accomplishments 2004 z Ramp up of 0.85-NA, high throughput 193-nm/ArF technology: 18 shipments since Q2 2004 z Rapid transition of advanced ArF systems to smaller footprint and cost effective XT platform z Introduced immersion for early customer process development: 3 shipments in Q4 – 8
Slide 8: Immersion working on the fab floor
Immersion working on the fab floor First SCANNING First yield IMMERSION image on Oct 7, 2003 Microprocessor Dec 2004 Shipped volume-capable production tools to U.S., Europe, Asia / Slide 8
Slide 9: Intellectual Property
Intellectual Property z Signed strategic cross license agreement with competitor z Further enhanced IP portfolio z Strengthened our funding availability for development of cutting edge technology / Slide 9
Slide 10: Financial summary
Financial summary Peter Wennink, CFO / Slide 10
Slide 11: Revenues
Total revenues M€ H2 Q4 3000 H1 Q3 2673 Q2 2500 Q1 2465 1959 785 2000 1493 Revenues 1589 1543 1500 820 611 526 1070 759 1000 351 370 616 1180 500 609 329 830 453 179 318 0 2000 2001 2002 2003 2004 Q4 2002 includes M€138 SAB 101 revenues / Slide 11
Slide 12: Sales per model
Sales per model 2003 2004 New scanners 200 mm i-line 15 40 Krf (248 nm) 57 59 Arf (193 nm) 4 1 Total 200 mm scanners 76 100 300 mm i-line 2 11 Krf (248 nm) 26 75 Arf (193 nm) 20 29 Total 300 mm scanners 48 115 Total scanners 124 215 New steppers i-line 1 1 Krf (248 nm) 1 0 Total steppers 2 1 Used sy
Slide 13: Revenue breakdown
Revenue breakdown 2003 2004 Value per type Steppers Steppers Scanners 7% Scanners Scanners 10% Scanners 300 mm 200 mm 300 mm 200 mm 51% 42% 64% 26% Value per technology 365 nm 365 nm 10% 248 nm 248 nm 15% 58% 60% 193 nm 193 nm 32% 25% Numbers have been rounded for readers’ convenience. / Slide 13
Slide 14: Revenue breakdown
Revenue breakdown 2003 Value per region 2004 Japan Japan 1% China Singapore 1% China Korea 5% Korea 4% 20% 10% Singapore 28% 12% Europe U.S. U.S. 12% 37% Europe 16% Taiwan Taiwan 13% 13% 28% Value per end-use Foundry Foundry IDM IDM 20% 48% 35% 22% Memory Memory 45% 31% Numbers have been rounded for
Slide 15: Overview historical financials consolidated M€
Overview historical financials consolidated M€ 12 months ended Dec 31 ASML 2003 2004 Net sales 1543 100.0% 2465 100.0% Gross profit 369 23.9% 906 36.7% R&D costs 287 18.6% 3313 13.4% SG&A costs 2371 15.4% 1962 7.9% Operating income from continuing operations (155) (10.0%) 379 15.4% Net income from c
Slide 16: Key financial trends 2004
Key financial trends 2004 Profit & Loss Statement M€ Q1 04 Q2 04 Q3 04 Q4 04 2004 Units 58 72 71 81 282 Sales 453 616 610 785 2465 Gross margin 146 220 232 308 906 Gross margin % 32.2% 35.6% 38.1% 39.2% 36.7% Recurring R&D 70 69 69 75 283 SG&A 42 50 52 52 196 Recurring operating income 34 101 112 18
Slide 17: Cash flow M€
Cash flow M€ 12 months ended ASML Dec 31 2003 2004 Net income from cont. operations (125) 235 Depreciation and amortization 157 93 Effects of changes in assets and liabilities 500 (77) Cash flow from recurring operations 533 2511 License cost - - Cash flow from investing activities (49) (60) Cash fl
Slide 18: Cash cycle improvement
Cash cycle improvement DSO, DPO and Inventory days 2000 - 2004 (calculated based on quarterly earnings releases) 350 300 250 # of days 200 150 100 50 - 2000 2001 2002 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 DSO 108 116 102 123 88 73 54 63 58 59 57 Inv days 166 180 176 264 258 220 195 175 134
Slide 19: Balance sheet as of December 31, 2004 M€
Balance sheet as of December 31, 2004 M€ ASSETS Dec 2003 Dec 2004 Cash and cash equivalents 1028 35.8% 1228 37.9% Accounts receivable, net 314 10.9% 503 15.5% Inventories, net 595 20.8% 718 22.1% Other assets 193 6.7% 203 6.3% Tax assets 375 13.1% 256 7.9% Fixed assets 363 12.7% 336 10.3% TOTAL ASSE
Slide 20: Financial accomplishments 2004
Financial accomplishments 2004 z Growth z Record quarterly revenues of €785 million z Shipments increased 68% year-on-year from 168 to 282 systems z Sales revenue increased 60% year-on-year z New system ASP grew from M€8.4 in Q1 to M€10.7 in Q4 z Profitability z Achieved targets for TWINSCANTM cost
Slide 21: Market environment and ASML outlook
Market environment and ASML outlook Eric Meurice / Slide 21
Slide 22: Semiconductor units continue to slide
Semiconductor units continue to slide Semiconductor Sales Semiconductors WW Dollars Semiconductors WW Dollars 3MMA 24 Semiconductors WW Units Semiconductors WW Units 3MMA 45 Semiconductor Sales (B Units) 22 Semiconductor Sales (B USD) 40 20 18 35 16 30 14 12 25 10 20 8 6 Jul-01 15 Jul-02 Jul-03 Jul-
Slide 23: Utilization dropped in Q4
Utilization dropped in Q4 Capacity utilization by technology MOS>=0.7µm MOS<0.7µm to >=0.4µm MOS<0.4µm to >=0.3µm MOS<0.3µm MOS<0.3µm to >=0.2um MOS<0.2 um MOS<0.2 um >=0.16um MOS<0.16um Expose & Write Shipments (x1000 USD) 100% 90% 80% 70% 60% 50% 40% 1Q01 3Q01 1Q02 1Q04 3Q02 1Q03 3Q03 3Q05 1Q05 1Q
Slide 24: Inventory levels well managed by customers
Inventory levels well managed by customers IC Unit sales and inventory 10.0 50.0 9.0 IC Inventory (VLSI Research, #) 45.0 3MMA IC Sales corrected for inventory (#) 8.0 3MMA WW IC Sales (#) 40.0 IC Unit Sales (B#) IC end user consumption - (est.) IC Inventory (B#) 7.0 35.0 6.0 30.0 5.0 25.0 4.0 20.0
Slide 25: Industry analyst expectations for 2005
Industry analyst expectations for 2005 2005 semiconductor revenue growth forecasts Average analyst estimate ~ 1.5 % -6% In-Stat -2% IC Insights SIA 0% WSTS 0% Dataquest 3% iSupply 5% Semico 5% VLSI Research 9% -15% -10% -5% 0% 5% 10% 15% Source: industry analysts data / Slide 25
Slide 26: Litho system requirements vs. semiconductor revenue growth
Litho system requirements as function of forecasted semiconductor sales revenue growth Worldwide demand new litho tools 500 High estimate 450 400 Low estimate 350 300 -10 -5 0 5 10 15 Analyst semiconductor sales revenue growth (%) Theoretical WW litho systems requirements calculated by ASML based up
Slide 27: Backlog: litho units and value
Backlog: litho units and value 250 2500 New systems Used systems 200 New and used systems 2000 Backlog value M€ Backlog units 150 1500 100 1000 50 500 0 0 03 04 02 03 03 04 04 03 04 n n ec ec ec p p ar ar Ju Ju Se Se M M D D D / Slide 27
Slide 28: Backlog as of December 31, 2004
Backlog as of December 31, 2004 New Systems Used Systems Total Backlog Backlog Backlog Units 119 12 131 Value M€ 1664 M€ 27 M€ 1691 ASP M€ 14.0 M€ 2.2 M€ 12.9 Numbers have been rounded for readers’ convenience. 80% of unit backlog carry H1 customer request dates Note: Indicative forecast, as custome
Slide 29: Backlog lithography per December 31, 2004
Backlog lithography per December 31, 2004 Total value M€ 1691 Value per type Value per technology Scanners Steppers Scanners 200 mm 365 nm 300 mm 1% 9% 6% 248 nm 90% 31% 193 nm 63% Value per region Value per end-use Japan China Singapore R&D Korea 2% 4% IDM 3% Foundry 8% 25% 23% 32% U.S. 29% Europe
Slide 30: Business strategy
Business strategy / Slide 30 \ as ASML
Slide 31: 2005 priorities to maximize growth, profitability and liquidity
2005 priorities to maximize growth, profitability and liquidity z Two short-term strategic initiatives z Drive up litho market share z Further reinforce position with top customers z Focus on the Japanese market z Take decision on FPD z Confirm differentiated concept z Continue negotiation with cust
Slide 32: Company focus 2005
Company focus 2005 z Maintain technology leadership z Continued leadership in throughput, overlay and imaging with TWINSCAN XT platform z Immersion ramp z Highest NA ArF tool XT:1400 on the market z Large backlog for “dry” XT:1400s z Immersion version deliveries to start in Q3 2005 z 4th generation
Slide 33: Company focus 2005 continued
Company focus 2005 continued z Create significant lead-time differentiation z Cycle time reduction z Critical inventory management: internal/external z Hi-flex work-force z Customer program: “lead-time for value” z Strengthen cost competitiveness z Continued Cost of Goods reduction z Introduction of
Slide 34: Summary
Summary z A balanced outlook z Semiconductor sales correction ongoing, reducing inventory to standard levels z ASML backlog supports solid H1 with, if executed, approximately 60 shippable units in Q1 z However, limited H2 visibility leads to a focus on managing flexibility for short-term up or down
Slide 35: Corporate Governance
Corporate Governance Code Tabaksblat Implementation 2004 / 2005 Presented by Eric Meurice, President and CEO AGM Veldhoven, March 24, 2005 / Slide 35
Slide 36: Corporate Governance initiatives
Corporate Governance initiatives z ASML must comply with both Sarbanes-Oxley and Tabaksblat z Although there is overlap to a certain extent between these two corporate governance initiatives, they are also different in approach / Slide 36
Slide 37: Code Tabaksblat - implementation
Code Tabaksblat - implementation Main activities 2004/ 2005 • Selection and Nomination Committee established • Recommended items placed on agenda AGM for approval/ discussion - Remuneration Policy 2004 , stock option and share plans BoM/ employees, reserves/ dividend policy, evaluation auditor • Est
Slide 38: Code Tabaksblat - deviations
Code Tabaksblat - deviations • Contracts members BOM signed before March 24, 2004 will be honored - incl. terms, severance payment etc. • Performance criteria - no details because of competition sensitive information • Term to retain stock - 3 plus 3 years; approved by AGM • Possible non-independenc
Slide 39: Commitment
Commitment / Slide 39