Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Q2 2010 Earnings Presentation
33 slides from Asml Holding Nv's earnings presentation, Jul 14, 2010
Slide 1: ASML 2010 Second Quarter Results
ASML 2010 Second Quarter Results Sales set for new high amid increasing semiconductor fab spend July 14, 2010 / Slide 1
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 selling pr
Slide 3: Agenda
Agenda Business summary Market ASML business update Outlook and summary / Slide 3
Slide 4: Business summary
Business summ ; / Slide 4 % ss ASML
Slide 5: Q2 results - highlights
Q2 results - highlights Net sales of € 1,069 million, 43 systems shipped valued at € 923 million, service revenue at € 146 million Gross margin of 43.0% (record) Operating margin of 27.4% (record) Shipped 25 immersion systems Booked 59 systems, valued at € 1,179 million Backlog increased to € 2,401
Slide 6: Net sales
Total net sales M€ Guidance: 2010 sales to grow 10 - 4500 15% above 4000 historical 3,768 3,582 peak of 3500 € 3.8 billion 955 1,053 2,954 3000 2369 2,529 494 Q4 Net sales 2500 Q3 934 548 697 2000 958 Q2 533 1,596 1500 Q1 930 844 581 1,069 763 942 1000 555 500 949 919 685 629 277 742 183 0 2005 2006
Slide 7: Net system sales breakdown in value: Q2 2010
Net system sales breakdown in value: Q2 2010 Technology Sales in Units ArF immersion 25 83% ArF KrF 11% 12 Immersion 2 4 85% ArF dry 3% ArF ArF dry KrF I-Line immersion I-Line 1% Region End-use USA Foundry 16% NAND 25% Korea Europe 10% 33% 20% IDM 12% Japan 8% DRAM 43% Taiwan Singapore 5% 24% Assumi
Slide 8: Consolidated statements of operations M€
Consolidated statements of operations M€ Q1 10 Q2 10 Net sales 742 1,069 Gross profit 298 459 Gross margin % 40.3% 43.0% R&D costs 120 125 SG&A costs 41 42 Income from operations 137 292 Operating income % 18.5% 27.4% Net income 107 239 Net income as a % of net sales 14.5% 22.4% Numbers have been ro
Slide 9: Key financial trends 2009 – 2010
Key financial trends 2009 – 2010 Consolidated statements of operations M€ Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net Sales 277 555 581 742 1,069 Gross profit 34 191 220 298 459 Gross margin % 12.5% 34.4% 38.0% 40.3% 43.0% R&D costs 118 115 115 120 125 SG&A costs 40 37 37 41 42 Income (loss) from operations (
Slide 10: Cash flows M€
Cash flows M€ Q1 10 Q2 10 Net income 107 239 Adjustments to reconcile net income to net cash flows from operating activities; Impairment and obsolescence 15 22 Depreciation and amortization 35 36 Deferred income taxes 24 6 Other non-cash items 3 4 Change in assets and liabilities (143) (114) Net cas
Slide 11: Balance sheets M€
Balance sheets M€ Assets Mar 2010 Jun 2010 Cash and cash equivalents 1,087 25% 1,189 24% Accounts receivable, net 630 14% 812 17% Finance receivables, net 23 1% – 0% Inventories, net 1,156 26% 1,309 27% Other assets 346 8% 343 7% Tax assets 273 6% 302 6% Fixed assets 880 20% 912 19% Total assets 4,3
Slide 12: Backlog as of June 27, 2010
Backlog as of June 27, 2010 New systems Used systems Total systems Backlog Backlog Backlog Units 86 15 101 Value M€ 2,296 M€ 105 M€ 2,401 ASP M€ 26.7 M€ 7.0 M€ 23.8 • 77 % of backlog or € 1,859 million system sales carry shipment dates in the next 6 months • Booked 48 new tools at € 1,145 million, 1
Slide 13: Backlog: value and litho units
Backlog value M€ 0 500 1000 1500 2000 2500 3000 Jan 04 Jul 04 / Slide 13 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Backlog value Jan 08 Backlog: value and litho units Units Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 0 50 100 150 200 250 300 Backlog in units
Slide 14: Backlog in value per June 27, 2010
Backlog in value per June 27, 2010 Total value M€ 2,401 Technology KrF 16% 58% NXT I-Line 1% 23% XT ArF dry 2% ArF Region immersion End-use 81% Japan 8% USA Singapore 2% 24% IDM Europe 9% 28% Taiwan DRAM 31% China 9% Foundry Korea 44% 13% 17% NAND 15% For hybrid memory fabs assuming 75% for DRAM, 25
Slide 15: Bookings activity by sector - total value M€ 1,179
Bookings activity by sector - total value M€ 1,179 Bookings in value Bookings in units Foundry 22% NAND 13% Foundry NAND 12% IDM 27% DRAM 20% 45% DRAM IDM 20% 41% For hybrid memory fabs assuming 75% for DRAM, 25% for NAND / Slide 15
Slide 16: Market
/ Slide 16 ¥ ys ASML
Slide 17: More devices, bigger market in mobile
More devices, bigger market in mobile Computing growth drivers over time, 1960 – 2020E 1,000,000 More than 100,000 Just phones Devices/Users (MM in Log Scale) • Smartphone tion • Kindle 10,000 gra • Tablet e g int • MP3 1,000 s in Mobile • Cell phone / PDA rea Internet • Car Electronics 100 In c Des
Slide 18: Market overview
Market overview Semiconductor unit growth back to historical trend, catch up capacity investments required in all sectors after a long period of slow capacity growth Share of new technology nodes in total semiconductor market accelerating as shrink continues to enable reduced chip cost and increased
Slide 19: Semiconductor revenue outlook 2010 is +28% and +10% in 2011
Semiconductor revenue outlook 2010 is +28% and +10% in 2011 2010 Semiconductor revenue growth forecast over time 35% Future Horizons YoY Semiconductor revenue growth SIA 30% Semico 25% Dataquest IC Insights 20% WSTS iSuppli 15% VLSI Research 10% AVERAGE 5% 0% Oct-09 Dec-09 Jan-10 Jun-10 Jul-10 Aug-1
Slide 20: Accelerated technology transitions per sector
Accelerated technology transitions per sector DRAM: Expanding 4x nm node production capacity in 2010, preparing for 3x nm node in 2011 NAND: Current advanced volume chip production at 3x nm node, ramping 2x nm node in 2011 Logic: Available production capacity at 6x and 4x nm node, starting 3x nm nod
Slide 21: Increasing number of critical exposures require more immersion tools
Increasing number of critical exposures in sub 50 nm nodes require more immersion tools DRAM NAND 8 8 7 7 Immersion Exposures Immersion Exposures 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2008 2009 2010 2011 2008 2009 2010 2011 LOGIC MPU 8 14 7 12 Immersion Exposures Immersion Exposures 6 10 5 8 4 6 3 4 2 1 2 0 0
Slide 22: Capacity additions and technology transitions expected in 11 for DRAM
Capacity additions and technology transitions expected in 2011 to meet forecasted DRAM demand* DRAM WW monthly wafer production split by node 2x nm 6x nm 8x nm – 200 mm 1600 3x nm 8x nm 9x nm – 200 mm 4x nm 9x nm 1XX nm – 200 mm 5x nm Max. capacity 1400 Wafer Starts [300 mm equiv. KWSM] 1200 1000 80
Slide 23: Similar pattern in NAND demand
Similar pattern in NAND demand* NAND WW monthly wafer starts split by node 1400 1x nm 5x nm 5x nm – 200 mm 2x nm 6x nm 6x nm – 200 mm 3x nm 7x nm 7x nm – 200 mm 4x nm Max. capacity 1200 Wafer Starts [300 mm equiv. KWSM] 1000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009
Slide 24: Entire Logic/MPU segment has been reducing capacity since 05
Entire Logic/MPU segment has been reducing capacity since 2005! Total (foundry + logic/MPU) capacity: Retirement analysis 2250 Wafer capacity (300 mm equiv. KWSM) About 60 KWSM (300 mm equiv.) Logic & MPU capacity 2000 per year retired or transferred to another segment for ≤200 mm fabs 1750 300 mm 1
Slide 25: Logic builds capacity to meet forecasted demand
Logic builds capacity to meet forecasted demand Logic+DSP+MCU 300mm WW monthly wafer starts split by node 800 2x nm 6x nm 3x nm 9x nm 700 4x nm 130 nm 5x nm 600 500 Wafer KWSM 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 Estimated unit growth 20% in 2010 and
Slide 26: Semiconductor manufacturers need new factories
Semiconductor manufacturers need new factories Publicly announced new fabs with ramp starting in 2010/2011 Hybrid memory (DRAM and NAND) - 1 fab NAND - 2 fabs Foundry/Logic - 5 fabs Under discussion Hybrid memory - 1 fab DRAM - 2 fabs MPU - 1 fab Foundry - 2 fabs / Slide 26
Slide 27: ASML business update
ASML business update / Slide 27
Slide 28: TWINSCAN NXT maturing for volume chip manufacturing
TWINSCAN NXT maturing for volume chip manufacturing Volume semiconductor production started on TWINSCAN NXT at several customers Proven industry leading performance of CD imaging uniformity well below 1 nm and overlay of less than 2 nm Booked 15 systems in Q2 Backlog 38 systems end Q2 Around 500,000
Slide 29: Holistic litho products
Holistic litho products Rapid customer adoption All leading edge scanners sold includes one or more holistic litho components High demand for field upgrades Positive effect on both system and service sales Optimizes manufacturing tolerances while shrinking chip features and provide faster start prod
Slide 30: EUV - NXE:3100 six machines to ship in next 12 months
EUV - NXE:3100 six machines to ship in next 12 months Completing integration tests / Slide 30
Slide 31: Outlook and summary
Outlook and summary / Slide 31
Slide 32: Q3 2010 outlook
Q3 2010 outlook Net sales expected around € 1.1 billion Gross margin expected of about 43% in Q3 R&D is expected at € 137 million net of credits SG&A is expected at € 50 million Q3 bookings levels anticipated around € 1.3 billion ASML 2010 sales expectations revised upward to 10% - 15% above the pea
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