Slide 1: ASML confirms full-year sales guidance, supported by solid backlog
Public ASML confirms full-year sales guidance, supported by solid backlog ASML 2014 Third Quarter Results Veldhoven, the Netherlands October 15, 2014
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 15 October 2014 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, expected customer demand in specified market segments, expected sales levels and
Slide 3: Agenda
Public Slide 3 15 October 2014 Agenda • Business summary • Business environment • Outlook • ASML technology status
Slide 4: Business summary
Public Slide 4 15 October 2014 Business summary
Slide 5: Q3 results – highlights
Q3 results – highlights Public Slide 5 15 October 2014 • Net sales of € 1,322 million, 30 litho systems sold, valued at € 884 million, net service and field option sales at € 438 million • Average selling price of € 29.5 million per machine representing a high amount of KrF and i-line tools in the s
Slide 6: Net system sales breakdown in value: Q3 2014
Net system sales breakdown in value: Q3 2014 Total value is € 884 million Public Slide 6 15 October 2014 End-Use Technology Memory KrF 28% IDM 12% I line 2% 22% EUV Region 14% (ship to location) Foundry China 50% ArF Immersion Korea 7% 72% 7% Taiwan 29% Sales in Units 13 10 USA 40% 5 Europe 8% 2 Res
Slide 7: Net Sales
Total net sales M€ Public Slide 7 15 October 2014 6000 5,651 5,245 5000 1,211 4,732 YTD 4,508 Q1 4,362 1,848 Q2 1,023 4000 3,768 Q3 1,521 1,459 1,322 Q4 Net Sales 955 2,954 3000 1,229 494 1,318 934 1,176 697 1,529 1,644 2000 1,596 1,228 930 1,187 844 581 1,069 1000 555 1,452 1,252 1,397 949 919 742
Slide 8: Net Sales by End-use
Total net sales M€ by End-use Public Slide 8 15 October 2014 6000 5,651 5,245 767 5000 4,732 YTD 4,508 Memory 1,252 4,362 IDM 613 930 Foundry 4000 3,768 1,856 1,205 Service & Options 417 Net Sales 944 2,954 3000 487 2,064 437 366 2,279 913 570 844 358 2000 1,596 722 698 440 421 2,585 2,294 588 1000
Slide 9: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 9 15 October 2014 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Net sales 1,318 1,848 1,397 1,644 1,322 Gross profit 531 806 610 752 578 Gross margin % 40.3% 43.6% 43.6% 45.7% 43.7% Other income* 17 17 20 20 20 R&D costs (244) (253) (279) (267) (260) SG&A costs
Slide 10: Cash flows M€
Cash flows M€ Public Slide 10 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 15 October 2014 Net income 193 481 249 399 244 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 68 68 65 67 60 Allowance for obsolete inventory 48 52 42 45 36 Other non-cash item
Slide 11: Balance sheets M€
Balance sheets M€ Public Slide 11 15 October 2014 Assets Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Cash & cash equivalents and short-term investments 2,724 3,011 2,998 2,711 2,685 Net accounts receivable and finance receivables 1,070 1,175 1,177 1,429 1,336 Inventories, net 2,492 2,393 2,548 2,616 2,677 Other a
Slide 12: Bookings activity by sector
Bookings activity by sector Public Total value M€ 1,397 Slide 12 15 October 2014 Net booked Memory 76% • 37 new tools at € 1,346 million • 10 used tools at € 51 million IDM 9% Foundry 15% EUV not included Numbers have been rounded for readers’convenience
Slide 13: Backlog in value per Sep 28, 2014
Backlog in value per Sep 28, 2014 Public Total value M€ 2,406 Slide 13 15 October 2014 Technology Region USA Rest of Asia 7% (ship to location) 24% Europe 4% ArF dry 3% KrF 7% Taiwan China 5% i-line 1% 10% End-use ArF immersion IDM 89% Korea 20% Foundry 50% 19% New Used Total Memory systems systems
Slide 14: Capital return to shareholders
Capital return to shareholders Public Slide 14 15 October 2014 • Of the € 1.0 billion 2013-2014 buy-back program 78% has been executed, acquiring 11.8 million shares up until the end of Q3 • Repurchased shares will be cancelled • ASML returned more than € 5 billion in dividend and share buy-backs si
Slide 15: Business environment
Public Slide 15 15 October 2014 Business environment
Slide 16: Business environment
Business environment Public Slide 16 • In H1 2015 we expect strong sales in support of ~25% bit growth to DRAM 15 October 2014 customers based upon • Equipment installations in new DRAM Fabs • Continued shrink requiring higher litho intensity • For FY 2015 we expect bit growth forecast ~ 40% • Deman
Slide 17: Outlook
Public Slide 17 15 October 2014 Outlook
Slide 18: Outlook
Outlook Public Slide 18 15 October 2014 • Q4 net sales around € 1.3 billion, including 1 EUV system • Gross margin around 43%, including EUV • R&D costs of about € 260 million • SG&A costs of about € 80 million • Other income (Customer Co-Investment Program) of about € 20 million • ASML expects full
Slide 19: ASML technology status
Public Slide 19 15 October 2014 ASML technology status
Slide 20: EUV status: Targeting mid-node insertion in 10nm logic
EUV status: Targeting mid-node insertion in 10nm logic Public Demonstrated >500 wafers/day Slide 20 15 October 2014 • All installed NXE:3300B systems have been upgraded to a wafer processing capability of more than 500 wafers per day; more than 500 wafers per day demonstrated during endurance tests
Slide 21: Wafers per day program: Progress in major areas
Wafers per day program: Progress in major areas Public Slide 21 15 October 2014 Improvement of CE of 4% Conversion Improved automation demonstrated at customers efficiency Automation algorithms Collector Drive laser lifetime Reduced dose margin with power 30% improvement in advanced controls collect
Slide 22: EUV towards production insertion
EUV towards production insertion Public Slide 22 15 October 2014 • We are working with a customer towards a mid-node insertion of EUV at the 10nm logic node in late 2016 • Other customers are preparing for initial learning in a manufacturing environment with expected shipments also starting in 2015
Slide 23: EUV shipments and revenue recognition
EUV shipments and revenue recognition Public Slide 23 15 October 2014 EUV shipments & revenue 2013 2014 2015 Total NXE:3300 Orders 11 Shipments 3 5 0 8 NXE:3300 Revenue 1 5 1 7 Revenue in R&D 1 1 Shipment plan - - 3 3 NXE:3300 → 3350 Revenue - - TBD* Shipment plan - - 6 NXE:3350 Revenue - - TBD* *Ti
Slide 24: Product highlights
Product highlights Public Slide 24 15 October 2014 • We shipped 12 of our most advanced immersion lithography systems, the TWINSCAN NXT:1970Ci, bringing the total to 42 and marking our fastest ramp of any new major product and customer recognition of the value offered by the scanner • A TWINSCAN sys
Slide 25: ASML
ASML