ASML Holding NV · EURONEXT:ASML
ASML Holding NV — Merrill Lynch TMT Conference 2006
19 slides from ASML Holding NV's conference presentation, Jun 6, 2006
Slide 1: Merrill Lynch TMT Conference
Merrill Lynch TMT Conference London – June 6, 2006 Eric Meurice – CEO / 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 presentation may include forward-looking statements that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and se
Slide 3: ASML overview
ASML overview The world’s leading supplier of Lithography equipment Key facts: Technology Leader/Innovator Headquarters: Veldhoven, the Netherlands Revenue 2005 ~ €2.5 B Market cap ~ €7.75 B Employees 5100 ASML outperforms in 2005 ASML TWINSCAN IC Fabrication 2004 2005 2004/ Equipment 2005 Growing m
Slide 4: ASML market share per region in ($)
ASML market share per region in ($) WW market share 57% in 2005 USA Europe Japan 8% 48% 62% Asia without Japan 77% Source: ASML / Slide 4
Slide 5: TWINSCAN XT:400 and XT:760 creating value in non and mid critical applications
TWINSCAN™ XT:400 and XT:760 creating value in non and mid critical applications XT:400E XT:760F Resolution: 350nm Resolution: 130nm Throughput: 129wph Throughput: 134wph I-line Superior CoO in 300mm KrF Lowest CoO in 300mm I-line 29% KrF Source: ASML 51% / Slide 5
Slide 6: TWINSCAN XT:1700i 1.2 NA with 26x33mm2 field
TWINSCAN XT:1700i 1.2 NA with 26x33mm2 field Imaging z Resolution 45-nm Overlay In-line z System 7-nm Catadioptric High Efficiency Throughput lens design Polarized z 125 shots 122 wph Illuminator 4th generation immersion technology Market share wet + dry ArF 68% Source: ASML 42nm / Slide 6
Slide 7: Key financial trends 2005 - 2006
Key financial trends 2005 - 2006 Profit & Loss Statement M€ Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Units 59 51 39 47 51 Sales 685 763 533 548 629 Gross margin 274 299 197 204 251 Gross margin % 40.0% 39.1% 37.0% 37.3% 40.0% R&D 79 82 80 82 87 SG&A 51 55 48 47 50 Operating income 144 162 69 75 114 Operating i
Slide 8: Mid-Term Market Update
Mid-Term Market Update / Slide 8
Slide 9: Market Status Summary
Market Status Summary z 2006 IC Unit growth forecast at about 10% / 11% growth y-o-y z Inventory at appropriate levels for continuous FAB capacity build up - under scrutiny z Utilization rates at approx. 92 % with wide range of customers hitting capacity limits z Industry shows sign of maturing as s
Slide 10: Semiconductor Units history and forecast
Semiconductor Units history and forecast 2006 Semiconductor consensus growth forecast at +11% Semiconductor unit Forecast Semiconductor Units Unit Trend 50 45 40 Semiconductor Units B/m 35 30 25 20 15 10 5 25% -21% 14% 9% 18% 4% 11% 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: ASML MCC
Slide 11: IC unit sales and inventory
IC unit sales and inventory Steady demand - inventory under control IC unit sales and inventory IC inventory 3mma IC unit Sales 3mma IC unit sales corrected for Inventory 80 80 70 70 60 60 IC unit inventory [B#] IC unit sales [B#] 50 50 40 40 30 30 20 20 10 10 0 - Jan-01 May-01 Sep-01 Jan-02 May-02
Slide 12: Litho Bookings and Billings as % of Semiconductor Revenue
Litho Bookings and Billings as % of Semiconductor Revenue Relative Litho spending in range of control Expose & Write Bookings and Billings as % of Semiconductor Epose & Wirte as % of Semiconductor Sales [%] sales 6% E&W bookings as % of Semi $Sadj 3MMA E&W billings as % of Semi $ Sadj 3MMA 5% 4% 3%
Slide 13: Growth from Multiple independent Segments
Growth from Multiple independent Segments Each Segment with its own investment cycle Flash shrink - 12 to 15 Shrink for new month investment cycle functionality and cost per function - 12 to 24 month investment cycle R&D Flash DRAM – closely follows Flash investment cycle IDM Other Memory Moore’s la
Slide 14: Further Growth engines
Further Growth engines: z 26 new fab projects under construction: z 9 Flash fabs z 6 other Memory fabs z 11 Foundry or IDM fabs z Immersion enabling 55 nm/45 nm next generation node for early 2007 production ramp: z Flash next generation z High integration/complexity Logic designs ¾ STRONG BOOKINGS
Slide 15: Long-Term Trajectory
Long-Term Trajectory / Slide 15
Slide 16: Company focus
Company focus z Execution on Technology – Cost – Leadtime z Execute on Leadership: z Volume production ramp of the TWINSCAN XT:1700i, hyper NA tool for 45 nm node: 20 - 25 tools to ship in 2006 z 2 EUV alpha tools mid 2006 z R&D investment increased to sustain an accelerated roadmap 1 node/year z Ex
Slide 17: ASML Secular Growth model
ASML Secular Growth model Assumption: 9% IC unit Growth/year 8,000 Average WW litho sales ASML’s 7,000 L ’s y opportunity M S n it 6,000 window A rtu WW Litho Sales (M€) ppo dow ASML’s potential o n 5,000 wi Growing to 70% Stable at 50% 4,000 Average WW litho Status Growingquo to 70% 3,000 Stable at
Slide 18: ASML is well positioned for value generation
ASML is well positioned for value generation z Growth z Target of 70% market share z Potential to double top line in 5 years (reference 2005) z Profitability z Track record of last 8 quarters - average 17.1% EBIT margin z Improvement through scaling z Liquidity z Average M €79 cash generation from o
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