ASML Holding NV · EURONEXT:ASML
ASML Holding NV — UBS Conference 2008
31 slides from ASML Holding NV's conference presentation, Mar 13, 2008
Slide 1: UBS Conference
UBS Conference Franki D’Hoore – Director Investor Relations London, 13 March, 2008 / Slide 1
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 z ASML overview z Market z Business performance z Financial summary z Outlook / Slide 3
Slide 4: ASML: The world's largest supplier of Lithography equipment
ASML The world’s largest supplier of Lithography equipment Ranked in the top 3 for Revenue evolution customer satisfaction for 5 years for the 5th consecutive year Year Revenues 2003 1,543 € M 2004 2,465 € M 2005 2,529 € M Employees: ~ 6500 (Q4‘07) 2006 3,597 € M Sales: # 3 Semi Cap 2007 3,809 € M M
Slide 5: Market
Market GY / Slide 5 ys ASML
Slide 6: Market in general
Market in general z Global economic weakness sentiment z Slowdown of overall 2008 semiconductor capex forecast by analysts and customers z Our immersion products enable technology transfers down to the 45nm node which are executed urgently by customers to reach appropriate integration and cost targe
Slide 7: High factory utilization + improved demand triggers equipment buys
High factory utilization + improved demand triggers equipment buys Factory utilization Leading Edge 2008 100% 90% 80% 70% 60% 50% 40% 8 4 6 6 7 7 8 9 5 4 5 9 1Q0 1Q0 1Q0 3Q0 1Q0 3Q0 3Q0 1Q0 1Q0 3Q0 3Q0 3Q0 Note: Leading edge is defined as 90 nm and below. Source: Gartner (Dec 2007) / Slide 7
Slide 8: Healthy semiconductor inventories and increasing chip demand should trigger equipment purchases
Healthy semiconductor inventories and increasing chip demand should trigger equipment purchases Semiconductor inventory Source: Gartner / Slide 8
Slide 9: NAND Flash: Fast transition to advanced nodes
NAND Flash : Fast transition to advanced nodes to enable higher capacity and lower cost devices 100% 80% 60% 40% 20% 0% Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 4X nm 0.00% 0.00% 0.00% 0.00% 0.00% 0.59% 5.18% 13.31% 5X nm 0.00% 2.89% 14.63% 32.75% 57.13% 70.23% 77.09% 70.22% 6Xnm 89.47% 91.89% 81.83%
Slide 10: Strong transition to 1 Gb DRAM requiring immersion technology
Strong transition to 1 Gb DRAM occurring requiring immersion technology DRAM product transition forecast Percentage of bit shipments 100% 90% 80% 1Gb 70% 2Gb 1Gb 60% 512Mb 50% 256Mb 128Mb 40% 64Mb 30% 16Mb 20% 4Mb 10% 0% 1 Q0 6 2 Q0 6 3 Q0 6 4 Q0 6 1 Q0 7 2 Q0 7 3 Q0 7 4 Q0 7 1 Q0 8 2 Q0 8 3 Q0 8 4
Slide 11: Litho demand scenario analysis: Top-Down vs. Bottom-Up
Litho demand scenario analysis: Top-Down vs. Bottom-Up Bottom-Up Top-Down Customer IC segment Requested Corresponding Average Simulated Year (main) Units IC# growth Analysts Units 2008 NAND 124 31% 38% 138 DRAM 143 7% 14% 178 MPU 31 3% 16% 50 LOGIC 93 8% 11% 120 TOTAL 400 (391) 8% 12% Avg 500 (486)
Slide 12: Litho unit demand
Litho demand analysis - Units: Top-Down vs. Bottom-Up DRAM NAND MPU LOGIC+MCU+DSP 400 350 Bottom-Up– Approx 400 units 300 Litho unit demand Top-Down – Approx 500 units 250 200 150 100 50 0 -20% -10% 0% 10% 20% 30% 40% 50% 60% Unit growth by IC segment Source: ASML February 2008 / Slide 12
Slide 13: Solid order book supports robust H1 revenue
Solid order book supports robust H1 revenue z Backlog is 89 systems valued at € 1,697 Million z 78% of backlog is shippable in the next 6 months z Immersion represents 60% of backlog z Solid IDM demand - 26% of backlog - underpins the non memory portion of backlog z Limited exposure to second tier D
Slide 14: Significance of the immersion market in 2008
Significance of the immersion market in 2008 z ASML immersion net sales expected to almost double in 2008 z Volume of immersion systems will lead to significant system ASP growth z Further market gains in Japan expected based upon highest productivity with 14 immersion systems installed / Slide 14
Slide 15: ASML: In the sweet spot of semiconductor equipment supply
ASML: In the “sweet spot” of semiconductor equipment supply z Lithography: the enabler of shrink for lower cost per chip z Lithography benefits from multiple growth drivers z Industry segment growth z Process complexity driving more litho layers z Higher ASP tools z ASML reaping the reward of immers
Slide 16: Total CapEx/Litho CapEx
Total CapEx/Litho CapEx NAND FLASH Litho CapEx versus total – 2006 to 2008 NAND FLASH Litho NAND FLASH Year Total CapEx CapEx (units) CapEx/Litho Ratio 2006 $15,350 $1,315 (111) 9% 2007 $18,300 $1,725 (128) 9% 2008 $15,200 $2,099 (125) 14% DRAM Litho CapEx versus total – 2006 to 2008 DRAM Litho CapE
Slide 17: Business performance
Business performance / Slide 17
Slide 18: 8 Quarters of robust Operating Margin performance
8 Quarters of robust Operating Margin performance ASML Operating Margin 30% 26% 22% 18% 14% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2006 2006 2006 2007 2007 2007 2007 / Slide 18
Slide 19: Improving shareholder value in 2007
Improving shareholder value in 2007 z In 2007, ASML returned € 1,372 million to shareholders through share buyback programs and a capital repayment z Reduced outstanding shares by 72 million shares z Issued 26 million shares for convertible bond redemption z The number of outstanding basic shares re
Slide 20: Improving shareholder value going forward
Improving shareholder value going forward z ASML is committed to return cash above its target cash & cash equivalents buffer of € 1 billion to € 1.5 billion to shareholders z The share buyback program of 14 million shares to cover for outstanding employees stock options has been completed z ASML is
Slide 21: Financial summary
Financial summary GY / Slide 21 ys ASML
Slide 22: Net sales
Total net sales M€ 3,809 4000 3,597 3500 973 3000 1068 2,529 2,465 2500 Q4 Net sales 548 940 785 958 Q3 2000 1,543 533 Q2 1500 611 935 Q1 526 763 942 1000 370 616 500 329 685 960 629 318 453 0 2003 2004 2005 2006 2007 / Slide 22
Slide 23: Net sales breakdown in value: Q4 2007
Net sales breakdown in value: Q4 2007 Technology Sales in units ArF immersion i-Line 6% ArF immersion 13 46% ArF dry 16 KrF 15% KrF 13 ArF dry i-Line 13 33% Region End-use Korea 31% Foundry 17% Taiwan 15% Japan 9% Memory 70% ROW 14% IDM Europe 10% 13% USA 21% Numbers have been rounded for readers’ c
Slide 24: Key financial trends 2006 - 2007
Key financial trends 2006 - 2007 Consolidated statement of operations M€ Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Units 72 77 69 59 55 Net Sales 1068 960 935 940 973 Gross profit 439 393 385 387 396 Gross margin % 41.1% 40.9% 41.1% 41.2% 40.7% R&D 107 116 120 120 129 Amortization in process R&D 23 SG&A 52 56 5
Slide 25: Backlog as of Dec 31, 2007
Backlog as of Dec 31, 2007 New Systems Used Systems Total Systems Backlog Backlog Backlog Units 79 10 89 Value M€ 1,650 M€ 47 M€ 1,697 ASP M€ 20.9 M€ 4.7 M€ 19.1 • 78% of backlog or € 1,328 million system sales carry Q1 ‘08 + Q2 ‘08 shipment dates • Q4 net bookings of 54 systems with a value of € 80
Slide 26: Backlog: value and litho units
Backlog value M€ 0 500 1000 1500 2000 2500 Jan 03 / Slide 26 Mar 03 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04 Oct 04 Jan 05 Apr 05 Jul 05 Backlog value Oct 05 Jan 06 Backlog: value and litho units Apr 06 Jul 06 Systems Oct 06 Jan 07 Apr 07 Jul 07 Oct 07 Dec07 0 50 100 150 200 250 300 Backlog units
Slide 27: Backlog lithography in value per Dec 31, 2007
Backlog lithography in value per Dec 31, 2007 Total value € 1,697 million Technology i-Line 2% ArF immersion 60% KrF 10% ArF dry 28 % Region End-use Korea 33% Taiwan 9% IDM Memory 26% Other 4% Europe 11% 66% Japan 10% Foundry USA 21% China 12% 8% Numbers have been rounded for readers’ convenience /
Slide 28: Outlook
Outlook GY / Slide 28 ys ASML
Slide 29: Q1 2008 outlook
Q1 2008 outlook z ASML expects to ship 50 systems z ASP for new + refurbished systems expected to be € 16.3 million z Gross margin between 40 - 41% z R&D is expected at € 127 million net of credit z SG&A is expected at € 58 million / Slide 29
Slide 30: 2008 Outlook
2008 Outlook z Although independent market researchers still expect a double digit increase in demand for integrated circuit units in 2008, which should translate into lithography market expansion in 2008, we are awaiting confirmation of this potential growth through the exact level of Q1 and Q2 boo
Slide 31: Commitment
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