Slide 1: ASML reports Q2 results in line with guidance, on track for record 2015 sales
Public ASML reports Q2 results in line with guidance on track for record 2015 sales ASML 2015 Second Quarter Results Veldhoven, the Netherlands July 15, 2015
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 15 July 2015 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expectations for the third quarter and second half of 2015, backlog, expe
Slide 3: Agenda
Public Slide 3 15 July 2015 Agenda • Investor key messages • Business highlights • Business environment • Outlook • Technology highlights • Financial statements
Slide 4: Investor key messages
Public Slide 4 15 July 2015 Investor key messages
Slide 5: Investor key messages
Investor key messages Public Slide 5 • Shrink is the key industry driver supporting innovation and providing long term industry growth 15 July 2015 • Moore’s Law will continue and be affordable • Lithography enables affordable shrink and therefore delivers compelling value for our customers • ASML’s
Slide 6: Business highlights
Public Slide 6 15 July 2015 Business highlights
Slide 7: Q2 results
Q2 results Public Slide 7 15 July 2015 • Net sales of € 1,654 million, 41 litho systems sold, valued at € 1,134 million, net service and field option sales at € 520 million • Average selling price of € 27.7 million per system • Gross margin of 45.6% • Operating margin of 25.3% • Net bookings of € 1,
Slide 8: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 8 15 July 2015 Technology End-Use Region (ship to location) Sales in Units 19 China 3% Taiwan 14 31% Q2’15 KrF 12% ArF dry 1% Memory IDM 5 total value 47% 13% 1 2 i-line 2% € 1,134 EUV 6% Korea Japan 27% 13% EUV ArF i ArFdry KrF I-Line million Foundry
Slide 9: Net Sales by quarter
Total net sales million € by quarter Public Slide 9 15 July 2015 7000 5,856 6000 5,651 5,245 Q4 5000 1,211 4,732 1,494 Q3 4,508 Q2 1,023 1,848 Q1 Net Sales 4000 1,521 1,459 1,322 3,304 YTD 3000 1,229 1,318 1,176 1,654 1,529 1,644 2000 1,228 1,187 1,069 1000 1,452 1,397 1,650 1,252 742 892 0 2010 201
Slide 10: Net Sales by End-use
Total net sales million € by End-use Public Slide 10 15 July 2015 7000 5,856 6000 5,651 5,245 767 5000 4,732 1,614 Service & Options 4,508 1,252 Foundry 613 930 IDM Net Sales 4000 1,856 Memory 1,186 3,304 YTD 944 3000 2,064 366 923 844 2,279 831 2000 872 440 2,585 588 301 1000 2,184 2,225 1,489 1,20
Slide 11: Bookings activity by sector
Bookings activity by sector Public Slide 11 15 July 2015 Memory 38% New Used Q2’15 total value systems systems € 1,523 million IDM 39% Units 41 5 Foundry Value M€ 1,494 29 23% Memory 53% New Used Q1’15 total value systems systems € 1,028 million Units 35 5 Foundry Value M€ 998 30 31% IDM 16% As of Q
Slide 12: Systems backlog in value
Systems backlog in value Public Region Slide 12 15 July 2015 Technology End-use (ship to location) ArF dry 3% ArF USA Rest of Asia 1% immersion Foundry 41% KrF 26% China 6% 58% IDM Q2’15 14% 37% i-line 1% Japan 6% total value New Used € 3,015 Taiwan systems Systems EUV 24% Korea million 16% Units 68
Slide 13: Capital return to shareholders
Capital return to shareholders Public Slide 13 15 July 2015 • ASML paid € 302 million in dividend or € 0.70 per ordinary share • Purchased € 285 million worth of shares in Q1 and Q2 as part of our 2015/2016 approx. € 1 billion share buy back program Dividend history Cumulative capital return 0.8 700
Slide 14: Business environment
Public Slide 14 15 July 2015 Business environment
Slide 15: Business environment
Business environment Public Slide 15 • 2 new DRAM fabs ramping capacity into H2 15 July 2015 • 2xH and 2xL nm DRAM node transitions progressing • Increased NAND litho tool demand in H2 supporting planar 1xM nm shrinks and 3D capacity increases Memory • 2 new NAND fabs under construction • 2 new foun
Slide 16: Outlook
Public Slide 16 15 July 2015 Outlook
Slide 17: Outlook
Outlook Public Slide 17 15 July 2015 • Q3 net sales between € 1.5 and €1.6 billion • Gross margin around 45% • R&D costs of about € 275 million • SG&A costs of about € 90 million • Other income (Customer Co-Investment Program) of about € 20 million • Effective tax rate approx. 11%
Slide 18: Technology highlights
Public Slide 18 15 July 2015 Technology highlights
Slide 19: EUV program: priorities for 2015
EUV program: priorities for 2015 Public Slide 19 15 July 2015 In 2015, we will focus on: • Improving stability and availability • Continuing progress on productivity • Shipping the NXE:3350B, our 4th generation EUV tool
Slide 20: EUV 2015 targets and status at a glance
EUV 2015 targets and status at a glance Public Slide 20 15 July 2015 Productivity – Target: 1000 wafers per day • 1022 wafers exposed in 24 hours at customer site • Upgrade to same configuration completed at multiple customer sites, in progress at others • 130W dose-controlled source power demonstra
Slide 21: Shipment, orders, factory opened
Shipment, orders, factory opened Public Slide 21 15 July 2015 NXE:3300B #7 passed site acceptance NXE:3300B #8 recognized in Q2 revenue = Total of 8 NXE:3300B installed 6 orders received in Q2 for EUV systems as part of volume purchase agreement with U.S. customer NXE:3350B: first shipment in Q3 New
Slide 22: EUV shipments and revenue recognition
EUV shipments and revenue recognition Public Slide 22 15 July 2015 EUV shipments & revenue 2015 Shipment plan 2 NXE:3300B Revenue 1 Shipment plan 0 NXE:3300B → 3350B Revenue 0 Shipment plan 5 NXE:3350B Revenue 0 • 1 NXE:3300B shipped in Q1, revenue recognized in Q2
Slide 23: Technology Adoption
Customers have different decision processes for new technology adoption → differences in timing of “WHEN” Public Slide 23 15 July 2015 Different adoption drivers & risk appetite per Typical customer steps towards application/customer new technology adoption: Early 8 1 Technology champion in R&D Tech
Slide 24: Q2 product highlights DUV and Holistic Litho
Q2 product highlights DUV and Holistic Litho Public Slide 24 15 July 2015 DUV • We have demonstrated a 30% overlay improvement with our TWINSCAN NXT:1980Di system, which will ship this year. The system will also offer a step up in productivity from 250 to 275 wafers per hour • Average availability o
Slide 25: Holistic Lithography: Image, Measure, Model
Holistic Lithography: Image, Measure, Model Public Slide 25 • Adoption continues across all market segments 15 July 2015 • YieldStar installed base now >250 systems • EUV will continue to drive Holistic Litho as we move to 7nm node & below • Annual revenue growth >20%, on track towards goal ~1B€ by
Slide 26: Financial statements
Public Slide 26 15 July 2015 Financial statements
Slide 27: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 27 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 15 July 2015 Net sales 1,644 1,322 1,494 1,650 1,654 Gross profit 752 578 657 779 754 Gross margin % 45.7% 43.7% 44.0% 47.2% 45.6% Other income* 20 20 20 21 21 R&D costs (267) (260) (268) (261) (267) SG&A costs (8
Slide 28: Cash flows M€
Cash flows M€ Public Slide 28 15 July 2015 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Net income 399 244 305 403 370 Net cash provided by (used in) operating activities 198 214 409 337 284 Net cash provided by (used in) investing activities (74) (24) 77 124 (107) Net cash provided by (used in) financing activiti
Slide 29: Balance sheets M€
Balance sheets M€ Public Slide 29 15 July 2015 Assets Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Cash & cash equivalents and short-term investments 2,711 2,685 2,754 2,838 2,520 Net accounts receivable and finance receivables 1,429 1,336 1,304 1,510 1,589 Inventories, net 2,616 2,677 2,550 2,607 2,592 Other asse
Slide 30: ASML
ASML