Slide 1: ASML 2018 Fourth-Quarter and Full Year Results
Public ASML reports € 10.9 billion net sales and € 2.6 billion net income in 2018 Sales growth expected in 2019 despite challenging environment Proposes to raise dividend by 50% ASML 2018 Fourth-Quarter and Full Year Results Veldhoven, the Netherlands January 23, 2019
Slide 2: Agenda
Public Slide 2 January 23, 2019 Agenda • Investor key messages • Business highlights • Outlook • Product highlights • Financial statements
Slide 3: Investor key messages
Public Slide 3 January 23, 2019 Investor key messages
Slide 4: Investor key messages
Investor key messages Public Slide 4 January 23, 2019 • Healthy semiconductor end market growth driven by major innovation in semiconductor enabled computing provides long term growth opportunity • Shrink is a key industry driver supporting innovation and providing long term industry growth • Holist
Slide 5: Business highlights
Public Slide 5 January 23, 2019 Business highlights
Slide 6: 2018 - Highlights
2018 - Highlights Public Slide 6 January 23, 2019 • Net sales grew to a record € 10.9 billion at 46.0% gross margin • Net income grew to a record € 2.6 billion resulting in an EPS of € 6.10 • EUV lithography: ◦ Shipped 18 systems ◦ Accelerated our NXE:3400C product roadmap with a >35% productivity i
Slide 7: Q4 results summary
Q4 results summary Public Slide 7 January 23, 2019 • Net sales of € 3,143 million, net systems sales valued at € 2,424 million, Installed Base Management* sales of € 719 million • Gross margin of 44.3% • Operating margin of 26.0% • Net income as a percentage of net sales of 25.1% • Net bookings of €
Slide 8: Net system sales breakdown in value (Quarterly)
Net system sales breakdown in value (Quarterly) Public Slide 8 January 23, 2019 Q4’18 total value € 2,424 million Q3’18 total value € 2,081 million
Slide 9: Net system sales breakdown in value (Yearly)
Net system sales breakdown in value (Yearly) Public Slide 9 January 23, 2019 2018 total value € 8,259 million 2017 total value € 6,424 million As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The comparative numbers presented above
Slide 10: Total net sales € million by End-use
Total net sales € million by End-use Public Slide 10 January 23, 2019 Installed Base Management Logic Memory As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The comparative numbers presented above have not been adjusted to reflect
Slide 11: Litho systems bookings activity by End-use
Litho systems bookings activity by End-use Public Slide 11 January 23, 2019 Lithography systems Q4’18 total value New Used € 1,587 million Units 43 10 Lithography systems New Used Q3’18 total value Units 62 5 € 2,200 million Net bookings do not include High-NA EUV orders. Q3 systems bookings include
Slide 12: Capital return to shareholders
Capital return to shareholders Public Slide 12 January 23, 2019 • Paid € 597 million dividend and purchased € 1.15 billion worth of shares in 2018 • Propose to declare a 50 percent dividend increase to € 2.10 per ordinary share at the 2019 Annual General Meeting of Shareholders • Around € 1.35 billi
Slide 13: Outlook
Public Slide 13 January 23, 2019 Outlook
Slide 14: Q1 Outlook
Q1 Outlook Public Slide 14 January 23, 2019 • Q1 2019 net sales of around € 2.1 billion ◦ including EUV system revenue of around € 300 million ◦ around € 300 million negatively impacted due to fire at one of our suppliers • Gross margin around 40% • R&D costs of around € 480 million • SG&A costs of
Slide 15: Product highlights
Public Slide 15 January 23, 2019 Product highlights
Slide 16: EUV volume ramp manufacturing has started
EUV volume ramp manufacturing has started Public Slide 16 January 23, 2019 • 6 EUV systems shipped and 5 EUV systems revenue Customers recognized in Q4, total 2018 shipments 18 commitment to insert EUV • Received 5 EUV orders in Q4 in volume manufacturing by • Shipment plan of 30 systems in 2019 to
Slide 17: Financial statements
Public Slide 17 January 23, 2019 Financial statements
Slide 18: Consolidated statements of operations € million
Consolidated statements of operations € million Public Slide 18 January 23, 2019 2014 2015 20161 20171 2018 Net sales 5,856 6,287 6,875 8,963 10,944 Gross profit 2,596 2,896 3,145 4,020 5,029 Gross margin % 44.3 46.1 45.7 44.9 46.0 Other income 2 81 83 94 96 — R&D costs (1,074) (1,068) (1,106) (1,26
Slide 19: Consolidated statements of operations € million
Consolidated statements of operations € million Public Slide 19 January 23, 2019 Q4 2017 1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Net sales 2,561 2,285 2,740 2,776 3,143 Gross profit 1,156 1,113 1,187 1,336 1,393 Gross margin % 45.2 48.7 43.3 48.1 44.3 Other income 2 24 — — — — R&D costs (317) (357) (380)
Slide 20: Consolidated statements of Cash flows € million
Consolidated statements of Cash flows € million Public Slide 20 January 23, 2019 2014 2015 20161 20171 2018 Net income 1,197 1,387 1,558 2,067 2,592 Net cash provided by (used in) operating activities 1,025 2,026 1,666 1,818 3,073 Net cash provided by (used in) investing activities (16) (1,160) (3,1
Slide 21: Consolidated statements of Cash flows € million
Consolidated statements of Cash flows € million Public Slide 21 January 23, 2019 Q4 2017 1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Net income 644 540 584 680 788 Net cash provided by (used in) operating activities 1,057 185 754 487 1,646 Net cash provided by (used in) investing activities (553) 188 (57) (23
Slide 22: Consolidated Balance sheets € million
Consolidated Balance sheets € million Public Slide 22 January 23, 2019 Assets 2014 2015 20161 20171 2018 Cash & cash equivalents and short-term investments 2,754 3,409 4,057 3,288 4,034 Net accounts receivable and finance receivables 1,304 1,208 1,145 1,958 2,384 Contract assets 149 270 96 Inventori
Slide 23: Consolidated Balance sheets € million
Consolidated Balance sheets € million Public Slide 23 January 23, 2019 Assets Q4 2017 1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Cash & cash equivalents and short-term investments 3,288 3,194 2,980 2,948 4,034 Net accounts receivable and finance receivables 1,958 2,025 1,932 2,794 2,384 Contract assets 270 1
Slide 24: Forward looking statements
Forward looking statements Public Slide 24 January 23, 2019 This document contains statements relating to certain projections, business trends and other matters that are forward-looking, including statements with respect to expected trends and outlook, bookings, expected financial results and trends
Slide 25: S ML
S ML