Slide 1: 2006 Second Quarter Results
2006 Second Quarter Results July 19, 2006
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 Q2 2006: Solid execution Q2 2006: Technology accomplishments Q2 2006: Shipment and bookings review Financial summary Q3 2006: Outlook Share buyback program Company focus for remainder 2006 ASML’s drivers for growth
Slide 4: Q2 2006: Solid execution
Q2 2006: Solid execution Growth Sales of € 942 million, an increase of 50% compared with Q1 2006, strongest quarterly sales in history of the company Increased market share by winning new 300mm fab opportunities and with continued success in Japan Profitability Posted highest quarterly operating mar
Slide 5: Q2 2006: Technology accomplishments
Q2 2006: Technology accomplishments Important quarter for our leading immersion products Brought to market eight TWINSCAN XT:1700i, 45nm volume production tools, totaling 21 ASML immersion tools worldwide Shipped one XT:1700i to Japan As of Q2 2006, three immersion tools are installed in Japan Custo
Slide 6: ASML earns top customer satisfaction ratings
ASML earns top customer satisfaction ratings four years in a row Source: VLSI Research, June 2006 Top 10 Large Suppliers of Chip Making Equipment 2006 Rank Company Varian Semiconductor ASML Hitachi Kokusai Electric Inc. Tokyo Electron Limited Dainippon Screen Mfg. Co., Ltd. Hitachi High - Technologi
Slide 7: Q2 2006: Shipment and bookings review
Q2 2006: Shipment and bookings review Excellent shipment quarter with record quarterly revenue Shipped 72 systems with ASP of € 11.7 million from € 10.8 million in Q1 2006 due to higher percentage of new systems in the mix including the new XT:1700i tool Shipped 58 new systems with ASP of € 13.7 mil
Slide 8: Financial summary
Financial summary
Slide 9: Total revenues M€
609 351 820 526 370 329 785 611 616 548 533 763 942 Total revenues M€ 1959 1543 2465 2529
Slide 10: Revenue breakdown: Q2 2006
units Others TWINSCAN i-line KrF ArF Revenue breakdown: Q2 2006 Value per type Value per technology TWINSCAN 87% Others 13% Value per region Value per end-use Foundry 26% Memory 44% IDM 30% KrF 36% ArF 58% i-line 6% U.S. 25% Taiwan 24% Korea 27% China 9% Europe 10% ROW 5% Numbers have been rounded f
Slide 11: Profit & Loss statement M€
Q1 06 Q2 06 YTD Net sales Gross profit Gross margin % R&D costs SG&A costs Operating income Operating income % Net income Net income % Profit & Loss statement M€ Numbers have been rounded for readers’ convenience 40.0% . % .3 % 18.2% . % 22. . % 12.7% . % 15.7. %
Slide 12: Key financial trends 2005 - 2006
Profit & Loss Statement M€ Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Units Sales Gross profit Gross margin % R&D SG&A Operating income Operatin g income % Net income Net income % ASP New Systems Booking Units Key financial trends 2005 - 2006 Numbers have been rounded for readers’ convenience 39.1 % 37.0 % 37.3
Slide 13: Cash flow M€
Q1 06 Q2 06 YTD Net income Depreciation and amortization Changes in tax assets and liabilities Effects of changes in inventories Effects of changes in other assets and liabilities Cash fl ow from operations Cash flow from investing activities Cash flow from financing activities Effect of changes in
Slide 14: Balance sheet as of July 2, 2006 M€
ASSETS March 2006 June 200 6 Cash and cash equivalents Accounts receivable, net Inventories, net Other assets Tax assets Fixed assets LIABILITIES and SHAREHOLDERS’ EQUITY Current liabilities 1 Convertible subordinated bonds Long term debts and deferred liabilities Shareholders’ equity Current liabil
Slide 15: Backlog as of July 2, 2006
New Systems Used Systems Total Backlog Backlog Backlog Units Value ASP Backlog as of July 2, 2006 88 % of unit backlog carry Q3 + Q4 2006 shipment dates Q2 net bookings of 93 systems with a value € 1.083 million including 78 new tools with an ASP of € 13.2 million Note: Due to possible customer chan
Slide 16: Backlog: litho units and value
Backlog: litho units and value
Slide 17: Backlog lithography per July 2, 2006
Backlog lithography per July 2, 2006 Total value € 1,830 million Value per type Value per technology TWINSCAN 95% Others 5% I-line 5% ArF dry 42 % Value per region Value per end-use U.S. 20% Foundry 24% Memory 49% Taiwan 14% IDM 27% Korea 34% KrF 26% ROW 7% Europe 9% ArF immersion 27 % Numbers have
Slide 18: Q3 2006: Outlook
Q3 2006: Outlook Shipment of 62 systems expected in Q3 ASP for new system shipments expected to be € 14.5 million and € 12.5 million for new + refurbished systems Bookings expected above 62 systems in Q3 Gross margin expected at 39% – 41% R&D and SG&A are expected to be € 100 million net of credit a
Slide 19: Share buyback program
Share buyback program ASML has completed its announced share buyback of € 400 million as announced on April 19, 2006. This represents 25,450,296 million shares or 5.25% of outstanding shares ASML has a convertible bond of principal amount USD 575 million due October 15, 2006. In case these notes wer
Slide 20: Company focus for remainder 2006
Company focus for remainder 2006 Continue execution on key points Execute on volume production ramp of the TWINSCAN XT:1700i, hyper NA tool for 45 nm node Execute on cost of goods reduction Execute on lead time reduction Increase the technology leadership gap Ship 2 EUV Alpha demo tools Prepare for
Slide 21: ASML's drivers for growth
ASML’s drivers for growth Lithography enables customers to shrink devices for lower cost and/or added functionality ASML continues to grow its worldwide market share Technology leadership fueled by R&D strength and scale Five industry segments work together resulting in milder industry cycles Each s
Slide 22: Commitment
Commitment