Asml Holding Nv · EURONEXT:ASML

Asml Holding Nv — Q3 2011 Earnings Presentation

31 slides from Asml Holding Nv's earnings presentation, Oct 12, 2011

  1. Slide 1: 2011 Third Quarter Results

    ASML 2011 Third Quarter Results Confirming expectation for record sales year Oct 12, 2011 Exhibit 99.2

  2. Slide 2: Safe Harbor

    Safe Harbor "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of systems backlog, IC unit demand, financial results, average se

  3. Slide 3: Agenda

    Agenda • Business summary • Market • ASML business update • Outlook and summary

  4. Slide 4: Business summary

    Business summary

  5. Slide 5: Q3 results - highlights

    Q3 results - highlights • Net sales of € 1,459 million, 55 systems sold valued at € 1,274 million, service and field option sales at € 185 million • Gross margin of 42.1% • Operating margin of 27.9% • Net bookings are valued at € 514 million, 23 systems • Backlog at € 1,994 million, 74 systems, excl

  6. Slide 6: 1,452 1,069 1,529 4 697 555 1,176 1,459 1,053 955 494 581 1,521 1,000

    629 949 919 183 742 1,452 942 930 844 277 1,069 1,529 958 934 697 555 1,176 1,459 1,053 955 494 581 1,521 1,000 2,000 3,000 4,000 5,000 6,000 2006 2007 2008 2009 2010 2011 Q4 Q3 Q2 Q1 3,582 3,768 2,954 1,596 4,508 Numbers have been rounded for readers’ convenience.

  7. Slide 7: Net system sales breakdown in value: Q3 2011

    ArF Immersion 71% China 15% DRAM 23% Sales in Units EUV ArF immersion ArF dry KrF I-Line Technology ArF dry 5% KrF 16% EUV 6% Net system sales breakdown in value: Q3 2011 USA 19% Korea 24% Region Japan 13% Singapore 13% Taiwan 7% Europe 9% End-use Foundry 22% IDM 27% NAND 28% / Slide 7 Numbers have

  8. Slide 8: Numbers

    Numbers have been rounded for readers’ convenience. Q2 11 Q3 11 Net sales 1,529 1,459 Gross profit Gross margin % 45.1% 42.1% R&D costs SG&A costs Income from operations Operating income % 32.3% 27.9% Net income Net income as a % of sales 28.3% 24.4% 1.01 0.84

  9. Slide 9: Key financial trends 2010 - 2011

    Key financial trends 2010 – 2011 Consolidated statements of operations M€ Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Net Sales 1,176 1,521 1,452 1,529 1,459 Gross profit Gross margin % 43.6% 45.0% 44.7% 45.1% 42.1% R&D costs SG&A costs Income from operations Operating income % 27.9% 32.4% 31.0% 32.3% 27.9% Net i

  10. Slide 10: Numbers (cash flow)

    Numbers have been rounded for readers’ convenience. Q2 11 Q3 11 Net income Adjustments to reconcile net income to net cash flows from operating activities; Impairment and obsolescence Depreciation and amortization Deferred income taxes (8) (4) Other non-cash items Change in assets and liabilities (8

  11. Slide 11: Numbers (balance sheet)

    Numbers have been rounded for readers’ convenience. Assets Cash and cash equivalents Accounts receivable, net Finance receivables, net Inventories, net Other assets Tax assets Fixed assets Total assets Liabilities and shareholders’ equity Current liabilities Non-current liabilities Shareholders’ equ

  12. Slide 12: Bookings activity by sector - total value

    DRAM 18% Foundry 41% NAND 30% Bookings activity by sector - total value Bookings in value IDM 11% • Booked new tools at € million, used at € million Numbers have been rounded for readers’ convenience.

  13. Slide 13: Backlog in value per Sep 25, 2011

    ArF immersion 75% Korea 27% DRAM 16% Foundry 42% Backlog in value per Sep 25, 2011 Total value M€ 1,994 New systems Used systems Total systems Units 1,951 1,994 31.5 3.6 26.9 Technology KrF 21% I-Line 2% Region (ship to location) USA 25% Taiwan 21% Europe 10% Japan 7% End-use IDM 17% Numbers have be

  14. Slide 14: Market

    Market

  15. Slide 15: Business environment

    Business environment • Its is too early to understand how overall demand for semiconductor will drive ASML’s business in 2012 • Sustained need for litho tools capable of printing new nodes will justify increased systems bookings in Q4 compared with Q3 • This level of bookings will start to support •

  16. Slide 16: Rapid technology transitions being executed in each sector

    Rapid technology transitions being executed in each sector NAND DRAM Logic MPU 0% 20% 40% 60% 80% 100% Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 1xH 2xL 2xH 3xL 3xH 4x nm 5x nm 0% 20% 40% 60% 80% 100% Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2xH 3xL 3xH 4x nm 5x nm 6x nm 8x nm 0% 20% 40% 60% 80% 100% Q1 Q2 Q3 Q4 Q1 Q2 2011 20

  17. Slide 17: ASML business update

    ASML business update

  18. Slide 18: Options for shrink: Immersion and EUV

    NAND / Slide 18 Year of production start Notes: 1. R&D solution required 1.5~ 2 yrs ahead of Production 2. EUV resolution requires 7nm diffusion length resist 3. DPT = Double Patterning Source: Customers, ASML, 05/10 Options for shrink: Immersion and EUV LOGIC DRAM

  19. Slide 19: ASML Dual Product Strategy enables continued shrink

    ASML Dual Product Strategy enables continued shrink Strong NXT platform roadmap optimized for multi pass patterning processes Introduce EUV platform for volume manufacturing of critical layers Concurrent development programs to enhance imaging, overlay, productivity and process control on both platf

  20. Slide 20: Q3 immersion platform highlights

    Q3 immersion platform highlights • ASML’s TWINSCAN NXT:1950 reached milestone of more than 100 shipments to date; total installed base of ASML immersion systems exceeds 320 tools • First TWINSCAN NXT:1950 with productivity of 200 wafers per hour (at 125 shots) is currently shipping • TWINSCAN NXT:19

  21. Slide 21: EUV is making significant progress

    EUV is making significant progress NXE:3100 4 machines are printing wafers, 1 system is being installed, 6 th system is shipping Imaging performance has been demonstrated down to 22 nanometer in a single exposure Total exposed wafers by customers almost doubled in Q3 to more than 2500 wafers allowin

  22. Slide 22: EUV productivity roadmap redefined

    EUV productivity roadmap redefined Source suppliers have now demonstrated power levels that support mid teens wafers per hour productivity These upgrades will be field implemented starting Q4 2011 High confidence in reaching commercial viable productivity levels in the summer of 2012 through: pre-pu

  23. Slide 23: NXE Source power roadmap and current status

    Power <10W Power 20-50W Power >100W NXE Source power roadmap and current status Expose power 30W @ 80% duty cycle without pre-pulse Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Demonstrated at supplier 0.2 0.4 0.6 0.8 1.2 x 10 0.2 0.4 0.6 0.8 1.2 1.4 1.6 1.8

  24. Slide 24: EUV transition

    EUV will be first introduced for layers that are difficult / expensive to print with multi pass immersion patterning Every customer, every application, every product and every layer will have its own difficulty / cost threshold Based upon economics and productivity more layers will be printed with E

  25. Slide 25: EUV industrialization in 2012 - 2014

    EUV industrialization in 2012 - 2014 2012 2016 2013 2014 2015 industrialization Time Critical exposures transition to EUV with improved productivity Non critical Immersion EUV Immersion double patterning

  26. Slide 26: Additional EUV shrink benefits

    ArFi EUV Additional EUV shrink benefits Die size reduction & cost per wafer (CpW) Source: ASML Strategic Marketing NAND CpW Savings: up to 50 $/wafer Case: Bit Line Contacts Savings: ~4% in die size Additional savings: Cycle time / Yield ~200 nm Logic CpW Savings: up to 400 $/wafer Case: SRAM 14nm s

  27. Slide 27: EUV NXE:3300 - Volume manufacturing tool

    EUV NXE:3300 – Volume manufacturing tool Assembly and integration of the first NXE:3300 has started for first delivery in H2 2012

  28. Slide 28: Share buy back program

    Share buy back program • € 1 billion, 24 month share buy back program • 56% of program executed • 20.7 million shares repurchased at an average price of € 26.98 • weekly updates available on ASML’s website Q1 Q2 Q3 1000 2011

  29. Slide 29: Outlook and summary

    Outlook and summary

  30. Slide 30: Q4 2011 outlook

    Q4 2011 outlook • Bookings expected at a level above Q3 • Net sales above € 1.1 billion including 1 EUV system (€ 40 million at 0% gross margin) • Gross margin about 41% • R&D costs at € 150 million • SG&A costs at € 56 million • ASML expects full year 2011 sales to hit a record level of about EUR 5

  31. Slide 31: Slide 31

Asml Holding — Q3 2011 Earnings Presentation on 6ix