Slide 1: Strong logic demand drives Q3 results, on track for record 2016 sales
Public Strong logic demand drives Q3 results, on track for record 2016 sales Orders for three EUV systems show customer base expanding to six ASML 2016 Third-Quarter Results Veldhoven, the Netherlands October 19, 2016
Slide 2: Agenda
Public Slide 2 October 19, 2016 Agenda • Investor key messages • Business highlights • Outlook • EUV highlights • HMI acquisition status • Financial statements
Slide 3: Investor key messages
Public Slide 3 October 19, 2016 Investor key messages
Slide 4: Investor key messages
Investor key messages Public Slide 4 October 19, 2016 • Lithography enables affordable shrink and therefore delivers compelling value for our customers • ASML’s R&D investments in lithography and process control products supports customer roadmaps • EUV will enable continuation of Moore’s Law and wi
Slide 5: Business highlights
Public Slide 5 October 19, 2016 Business highlights
Slide 6: Q3 results summary
Q3 results summary Public Slide 6 October 19, 2016 • Net sales of € 1,815 million, including around € 85 million EUV, 40 litho systems sold valued at € 1,238 million, net service and field option sales at € 577 million • Average selling price of € 31.0 million per system • Gross margin of 46.0% • Op
Slide 7: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 7 October 19, 2016 Technology End-Use Region (ship to location) Sales in Units China 6% ArF Dry 2% Japan 5% KrF Rest of Asia 7% 19 I-line 2% 14 Q3’16 12% Foundry total value EUV 7% 66% Europe 8% 5 Memory 1 1 Taiwan € 1,238 16% 55% ArF million USA 9% E
Slide 8: Total net sales by quarter
Total net sales million € by quarter Public Slide 8 October 19, 2016 7,000 6,287 6,000 5,856 5,651 1,434 5,245 1,494 4,888 YTD 5,000 1,211 4,732 Q4 1,023 1,848 4,000 1,549 1,815 Net Sales 1,459 1,322 Q3 3,000 1,229 1,318 Q2 1,654 1,529 1,644 1,740 2,000 1,228 Q1 1,187 1,000 1,452 1,397 1,650 1,252 1
Slide 9: Total net sales by End-use
Total net sales million € by End-use Public Slide 9 October 19, 2016 7,000 6,287 6,000 5,856 5,651 5,245 767 2,050 4,888 YTD 5,000 4,732 1,614 1,252 930 Service & Options 1,540 Net Sales 4,000 1,856 1,186 Foundry 1,608 3,000 2,064 844 2,279 831 IDM 514 1,731 2,000 Memory 440 588 628 1,000 2,184 2,22
Slide 10: Bookings activity by sector
Bookings activity by sector Public Slide 10 October 19, 2016 Memory 36% New Used Q3’16 total value systems systems € 1,415 million IDM Units 37 6 12% Foundry Value M€ 1,396 19 52% Memory 25% New Used IDM Q2’16 total value 18% systems systems € 1,566 million Units 40 3 Foundry Value M€ 1,555 11 57%
Slide 11: System backlog in value
System backlog in value Public Slide 11 October 19, 2016 Technology End-Use Region (ship to location) ArF Dry 2% China 5% Rest of Asia 1% KrF 8% Memory Taiwan Q3’16 ArF I-line 1% 31% 28% Europe 10% total value Immersion 51% € 3,462 New Used IDM Foundry Korea systems systems million EUV 29% 40% 27% U
Slide 12: Capital return to shareholders
Capital return to shareholders Public Slide 12 October 19, 2016 Progress of 2016/2017 share buyback program for up to € 1.5 billion • Purchased € 13 million worth of shares in Q3 • Year to date € 400 million worth of shares purchased • Share buyback program is currently paused while we are in the mi
Slide 13: Outlook
Public Slide 13 October 19, 2016 Outlook
Slide 14: Outlook
Outlook Public Slide 14 October 19, 2016 • Our guidance for fourth-quarter: • Q4 net sales between € 1.7 and 1.8 billion • Gross margin between 47 and 48% • R&D costs of about € 275 million • SG&A costs of about € 100 million (which includes one-off acquisition-related costs of around € 10 million)
Slide 15: EUV highlights
Public Slide 15 October 19, 2016 EUV highlights
Slide 16: EUV 2016 targets and achievements
EUV 2016 targets and achievements Public Slide 16 October 19, 2016 Productivity - Target: 1500 wafers per day • More than 1,500 wafers per day (wpd) exposed on NXE:3350B at a customer site on average over a three days period Availability - Target: 80% • Best performance is four-week average above 90
Slide 17: HMI acquisition status
Public Slide 17 October 19, 2016 HMI acquisition status
Slide 18: HMI acquisition status
HMI acquisition status Public Slide 18 October 19, 2016 • HMI shareholders voted in favor for the acquisition during the HMI EGM • Approvals received : • CFIUS (US) • Competition Commission Singapore • Taiwan Fair Trade Commission • Taiwan Investment Commission Inbound • Approval pending : • Taiwan
Slide 19: Financial statements
Public Slide 19 October 19, 2016 Financial statements
Slide 20: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 20 October 19, 2016 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Net sales 1,549 1,434 1,333 1,740 1,815 Gross profit 703 660 568 741 834 Gross margin % 45.4% 46.0% 42.6% 42.6% 46.0% Other income* 21 21 23 23 23 R&D costs (267) (273) (275) (270) (273)
Slide 21: Cash flows M€
Cash flows M€ Public Slide 21 October 19, 2016 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Net income 322 292 198 354 396 Net cash provided by (used in) operating activities 420 985 (6) 481 (3) Net cash provided by (used in) investing activities (99) (1,078) (183) (24) (484) Net cash provided by (used i
Slide 22: Balance sheets M€
Balance sheets M€ Public Slide 22 October 19, 2016 Assets Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Cash & cash equivalents and short-term investments 2,681 3,409 3,138 2,926 4,313 Net accounts receivable and finance receivables 1,593 1,208 1,302 1,362 1,593 Inventories, net 2,537 2,574 2,750 2,715 2,
Slide 23: Forward looking statements
Forward looking statements Public Slide 23 October 19, 2016 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expected customer demand in specified market segments including memo
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