Slide 1: ASML 2007 Third Quarter Results
ASML 2007 Third Quarter Results Strong demand for latest chip litho systems prompts solid outlook October 17, 2007
Slide 2: Agenda
Agenda ASML overview Technology Financial performance Financial summary Outlook
Slide 3: ASML overview
ASML overview The world's leading supplier of lithography equipment Revenue 2006 ~ &128;3.6 B Market cap ~ &128;10 B Employees Q3 '07 ~ 6400 Key facts: Headquarters: Veldhoven, the Netherlands Ranked in the top 3 for customer satisfaction for the 5th consecutive year
Slide 4: Technology
Technology Y,. > S ASML PSlies
Slide 5: ASML: leading in technology
ASML: leading in technology Newest generation immersion tool shipping in volume New KrF machine announced i-Line record performance in volume manufacturing Providing highest Value Of Ownership for leading edge mid critical non-critical machines
Slide 6: Immersion TWINSCAN XT:1900i
Immersion TWINSCAN XT:1900i Significant volume ramp of TWINSCAN XT:1900i in its first quarter of introduction Shipped 12 immersion tools in Q3 including 6 XT:1900i systems Only machine capable of printing features in sub 40 nm production XT:1900i ordered for 45 nm volume Flash and 55 nm volume DRAM
Slide 7: Immersion leadership continues
KrF ArF dry ArF wet I line East 6 29 61 4 West North Immersion leadership continues Booked 22 TWINSCAN XT:1900i in Q3 2007 35 immersion machines in backlog valued at &128; 1,084 million or 61% of total backlog Shipped 12 immersion tools in Q3 to 8 customers including 4 systems to Japan ASML reiterat
Slide 8: Leadership in KrF
Leadership in KrF XT:1000 Instrumental in market share gain Unique litho tool allowing expansion of cost effective KrF processing and KrF market share gain for ASML The only KrF machine capable of printing 80 nm features First system is planned to ship mid 2008
Slide 9: EUV: preparing for the future
EUV: preparing for the future EUV will take the industry to imaging of features at 22 nm and below ASML's leading technology position confirmed as a 4th customer for a next generation EUV system is identified Delivery of pre-production systems is planned to start late 2009 Delivery of pre-production
Slide 10: Financial performance
Financial performance % & % ASML P9lide 12
Slide 11: Bookings and backlog performance
Bookings and backlog performance Bookings Bookings momentum set by leading edge technology investments by Flash customers - 50% in revenue Booked 40 systems in Q3, valued at &128; 857 million with a record average selling price of &128; 23.5 million for new systems Backlog 90% of the value is for Ar
Slide 12: Stable revenue performance, loose bookings correlation
Stable revenue performance, loose bookings correlation Robust results with 6 quarters of over &128; 900 Million revenue, while Memory prices changed dramatically Order intake varied between 30 and 95 litho systems per quarter Recurring operating margin is between 22.2% and 26.2%
Slide 13: Q3 business performance
Q3 business performance Strong Q3 top line revenue of &128; 940 million Solid margin performance with gross margin of 41.2% Operating margin of 22.4% Cash generation &128; 169 million from operations Backlog increased to &128; 1,769 million
Slide 14: Improving shareholder value
Improving shareholder value Capital repayment program ASML returned over &128; 1 billion to shareholders (&128; 2.04 per share) in combination with a reverse stock split 8 for 9 shares Convertible bond 88% of the outstanding convertible subordinated bond due 2010 has been converted by bondholders Si
Slide 15: Improving shareholder value going forward
Improving shareholder value going forward Policy for cash return ASML's commitment to return excess cash to shareholders continues ASML maintains a target gross cash liquidity buffer of &128; 1 billion to &128; 1.5 billion ASML will start a new share buy-back program of max 14 million shares to cove
Slide 16: Financial summary
Financial summary % & % ASML P9ide 18
Slide 17: Total revenues by quarter
2003 2004 2005 2006 2007 Q1 318 453 685 629 960 Q2 329 616 763 942 935 Q3 370 611 533 958 940 Q4 526 785 548 1065 Total revenues M&128; 526 370 329 318 785 611 616 453 548 533 763 685 629 1,543 2,465 2,529 942 958 1068 3,597 960 935 940
Slide 18: Revenue breakdown in value: Q3 2007
Memory Foundry IDM R&D East 72 5 23 5 West North Revenue breakdown in value: Q3 2007 Type Technology TWINSCAN 97% Other systems 3% Region End-use Foundry 5% Memory 72% IDM 23% KrF 17% i-Line 9% Others TWINSCAN Stp 3 97 West North KrF ArF dry ArF immersion I line East 17 34 40 9 West North ROW U.S.A
Slide 19: Profit & Loss statement
Profit & Loss statement M&128; Numbers have been rounded for readers' convenience
Slide 20: Key financial trends 2006 - 2007
Key financial trends 2006 - 2007 Numbers have been rounded for readers' convenience
Slide 21: Cash flow
Cash flow M&128; Numbers have been rounded for readers' convenience
Slide 22: Balance sheet as of Sep 30, 2007
Balance sheet as of Sep 30, 2007 M&128; Numbers have been rounded for readers' convenience * Capital repayment &128;1,012 million due 4 October 2007
Slide 23: Backlog as of Sep 30, 2007
Backlog as of Sep 30, 2007 69% of backlog or &128; 1,224 million system sales carry Q4 '07 + Q1 '08 shipment dates Q3 net bookings of 40 systems with a value of &128; 857 million including 35 new tools with a record ASP of &128; 23.5 million Note: Due to possible customer changes in delivery schedul
Slide 24: Backlog: value and litho units
Backlog: value and litho units Backlog Jan 03 Mar 03 Jul 03 Oct 03 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 Backlog value 1030 870 678 859 993 1357 1800 2053 1691 1377 987 1245 1434 1596 1830 2126 2146 2163 1745 1769 Systems 103
Slide 25: Backlog lithography in value per Sep 30, 2007
Memory IDM Foundry R&D East 67 22 11 0 West North KrF ArF dry ArF wet I line East 6 29 61 4 West North Backlog lithography in value per Sep 30, 2007 Total value &128; 1,769 million Type Technology TWINSCAN 98% Other systems 2% i-Line 4% ArF immersion 61 % Region End-use Foundry 11% Memory 67% IDM 22
Slide 26: Outlook
Outlook P9ide28
Slide 27: Q4 2007 outlook
Q4 2007 outlook ASML expects to ship 55 systems ASP for new + refurbished systems expected to be &128; 15.0 million Gross margin between 40 - 41% R&D is expected at &128; 125 million net of credit SG&A will remain at &128; 56 million
Slide 28: Market conditions - ASML growth drivers
Market conditions - ASML growth drivers Short term: Flash Improving order trend led by Flash memory Ongoing capacity additions at 55 nm node 4 and 8 Gb Flash densities require 45 nm imaging Strong Flash unit growth expected Mid term: DRAM DRAM invests in immersion for 55 nm for higher density chips
Slide 29: 2007 - 2008 Outlook
2007 - 2008 Outlook Q4 order intake will exceed Q3 bookings Potential for revenues over the first 3 quarters of 2008 to exceed the first 3 quarters of 2007
Slide 30: ASML
4 & ASML Commitment