Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Credit Suisse conference (May 2009)
30 slides from Asml Holding Nv's conference presentation, May 6, 2009
Slide 1: Credit Suisse conference
Credit Suisse conference Franki D'Hoore Director European Investor Relations May 6, 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 Business summary Outlook and summary
Slide 4: Market
Market
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 increased as of February, driven by recovering demand while DRAM utilization falls Spot and contract prices improve for NAND and DRAM
Slide 6: All DRAM manufacturers showed negative operating margins in Q4 2008
All DRAM manufacturers showed negative operating margins in Q4 2008 Source: DRAMeXchange (2/09), ASML Most advanced node in Q4/08: 5x nm 5x nm 6x nm 6x nm 6x nm 6x nm 6x nm 7x nm
Slide 7: DRAM Gb spot price back to profitable territory for 5xnm manufacturers
Source: DRAM Exchange (04/2009) DRAM 1 Gb spot price went back to profitable territory for 5xnm manufacturers, driven by supply cut-backs 5xnm manufacturers, driven by supply cut-backs 5xnm manufacturers, driven by supply cut-backs 300 mm cash-costs for 6x nm 512 Mb between 0.5 and 0.6 USD 300 mm ca
Slide 8: NAND MLC 16 Gb ASPs stabilized above cash-costs
Source: DRAM Exchange (04/2009) 300 mm cash-costs for 4x nm 16 Gb MLC NAND between 1,9 and 2,4 USD NAND MLC 16 Gb mainstream ASPs stabilized above cash-costs Larger premium paid for high-performance SLC IC's 300 mm cash-costs for 4x nm 16 Gb SLC NAND between 4 and 5 USD
Slide 9: Foundry factory utilization hit bottom but below trigger point for capacity buys
Factory utilization of foundries hit bottom but well below the trigger point for capacity buys Source: ASML Foundry Top-4 Utilization Performance - -100 - -80 - -60 - -40 - -20 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-
Slide 10: Strategy for the future
Strategy for the future & ASML
Slide 11: Technology developments continue in spite of 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 Successful cost cutting in R&D through efficiency improvements Continued investment in strategically important development programs to ensure timely introduction of next node production capability Proved EUV imaging with the first full field 28 nm d
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: Business summary
Business’ W & ASML y)
Slide 23: Total net sales by quarter
2003 2004 2005 2006* 2007* 2008 2009 Q1 318 453 685 629 949 919 184 Q2 329 616 763 942 930 844 Q3 370 611 533 958 934 697 Q4 526 785 548 1053 955 494 Total net sales M€ 1,543 2,465 2,529 3,582 3,768 * 2006 and 2007 numbers are adjusted retrospectively with respect to the change in accounting policy.
Slide 24: Key financial trends 2008 - 2009
Key financial trends 2008 - 2009 Consolidated statement of operations M€ Numbers have been rounded for readers' convenience.
Slide 25: Backlog: value and litho units
Backlog: value and litho units Backlog Jan 03 39541 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 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 4/9/2009 Backlog value 1030 870 678 859 993 1357 1800 2053 1691 1377 987 1245 1434 1596
Slide 26: Backlog lithography in value by region and end-use
Taiwan Europe Singapore Korea USA Japan China 9 5 9 8 26 27 16 memory IDM Foundry 61 27 12 0 0 0 immersion KrF 1-line ArF dry 86 6 1 7 Backlog lithography in value per Mar 29, 2009 Total value M€ 853 Technology i-Line 1% ArF immersion 86% KrF 6% ArF dry 7% Region USA 26% Taiwan 9% Korea 8% Europe 5%
Slide 27: Outlook and summary
Outlook and summary
Slide 28: 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 29: 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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