Slide 1: ASML 2011 Third Quarter Results
ASML 2011 Third Quarter Results Confirming expectation for record sales year Oct 12, 2011 / Slide 1
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
Slide 3: Agenda
Agenda • Business summary • Market • ASML business update • Outlook and summary / Slide 3
Slide 4: Business summary
Business summ ; / Slide 4 % ss ASML
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
Slide 6: Net sales
Total net sales M€ 6,000 5,000 4,508 3,768 4,000 3,582 1,521 1,459 Q4 Net sales 955 2,954 1,053 Q3 3,000 494 Q2 934 1,176 2,000 958 697 1,596 1,529 Q1 930 844 581 1,069 1,000 942 555 1,452 949 919 742 629 277 0 183 2006 2007 2008 2009 2010 2011 Numbers have been rounded for readers’ convenience. / S
Slide 7: Net system sales breakdown in value: Q3 2011
Net system sales breakdown in value: Q3 2011 Technology Sales in Units KrF ArF dry 5% ArF 16% immersion I-Line 2% 83% ArF 25 18 Immersion EUV 6% 2 3 7 71% EUV ArF ArF dry KrF I-Line immersion Region End-use Japan Singapore 13% Foundry USA 13% 22% 19% NAND IDM 28% 27% Europe 9% Korea DRAM 24% 23% Chi
Slide 8: Consolidated statements of operations M€
Consolidated statements of operations M€ Q2 11 Q3 11 Net sales 1,529 1,459 Gross profit 690 613 Gross margin % 45.1% 42.1% R&D costs 145 150 SG&A costs 51 56 Income from operations 494 407 Operating income % 32.3% 27.9% Net income 432 355 Net income as a % of sales 28.3% 24.4% Earnings per share (ba
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 513 685 649 690 613 Gross margin % 43.6% 45.0% 44.7% 45.1% 42.1% R&D costs 137 141 145 145 150 SG&A costs 48 50 54 51 56 Income from operations
Slide 10: Cash flows M€
Cash flows M€ Q2 11 Q3 11 Net income 432 355 Adjustments to reconcile net income to net cash flows from operating activities; Impairment and obsolescence 14 23 Depreciation and amortization 43 43 Deferred income taxes (8) (4) Other non-cash items 3 4 Change in assets and liabilities 15 (83) Net cash
Slide 11: Balance sheets M€
Balance sheets M€ Assets Jun 2011 Sep 2011 Cash and cash equivalents 2,742 39% 2,838 40% Accounts receivable, net 895 12% 812 11% Finance receivables, net 62 1% 116 2% Inventories, net 1,610 23% 1,456 20% Other assets 468 7% 498 7% Tax assets 195 3% 179 3% Fixed assets 1,104 15% 1,209 17% Total asse
Slide 12: Bookings activity by sector - total value M€ 514
Bookings activity by sector - total value M€ 514 Bookings in value NAND 30% DRAM 18% IDM Foundry 11% 41% • Booked 21 new tools at € 506 million, 2 used at € 8 million Numbers have been rounded for readers’ convenience. / Slide 12
Slide 13: Backlog in value per Sep 25, 2011
Backlog in value per Sep 25, 2011 Total value M€ 1,994 New Used Total systems systems systems Technology Units 62 12 74 Value M€ 1,951 43 1,994 ASP M€ 31.5 3.6 26.9 KrF 21% I-Line 2% ArF ArF dry 2% immersion End-use 75% Region (ship to location) Foundry USA Japan 7% 42% 25% Taiwan Singapore 7% IDM 1
Slide 14: Market
/ Slide 14 ¥ ys ASML
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 •
Slide 16: Rapid technology transitions being executed in each sector
Rapid technology transitions being executed in each sector NAND 1xH 2xL 2xH 3xL 3xH 4x nm 5x nm DRAM 2xH 3xL 3xH 4x nm 5x nm 6x nm 8x nm 100% 100% % of Wafer Starts per Node % of Wafer starts per Node 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2011 2012 Logic
Slide 17: ASML business update
ASML business update / Slide 17
Slide 18: Options for shrink: Immersion and EUV
Options for shrink: Immersion and EUV 200 KrF Resolution (half pitch) "Shrink" [nm] 100 80 ArFi ArF 60 50 40 DPT 30 LOGIC 20 DRAM EUV 10 NAND 8 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Source: Customers, ASML, 05/10 Year of production start Notes: 1. R&D solution required 1.5~ 2 yrs ahe
Slide 19: ASML Dual Product Strategy enables continued shrink
ASML Dual Product Strategy enables continued shrink Strong NXT platform roadmap Introduce EUV platform for optimized for multi pass volume manufacturing of patterning processes critical layers Concurrent development programs to enhance imaging, overlay, productivity and process control on both platf
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
Slide 21: EUV is making significant progress
EUV is making significant progress NXE:3100 4 machines are printing wafers, 1 system is being installed, 6th 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 allowing
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
Slide 23: NXE Source power roadmap and current status
NXE Source power roadmap and current status Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Power <10W Power 20-50W Power >100W Demonstrated at supplier Expose power 30W @ 80% duty cycle without pre-pulse 1.2 2 1.8 1 1.6 1.4 0.8 1.2 0.6 1 0.8 0.4 0.6 0.4 0.2 0.2 0 0 0 1 2 3 4 5 6 7 4 x 10 / Slide 23
Slide 24: EUV transition
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
Slide 25: EUV industrialization in 2012 - 2014
EUV industrialization in 2012 - 2014 150 Critical exposures transition to EUV with improved productivity lab 125 e th in b fa Wafers per hour en 100 Exposure layers e EUV ov th Pr in en Immersion double 75 ov patterning Pr Immersion 50 industrialization 25 Non critical 0 2012 2013 2014 2015 2016 Tim
Slide 26: Additional EUV shrink benefits
Additional EUV shrink benefits Die size reduction & cost per wafer (CpW) NAND DRAM Logic CpW Savings: CpW Savings: CpW Savings: up to 50 $/wafer up to 100 $/wafer up to 400 $/wafer Case: Bit Line Contacts Case: Sense Amplifiers Case: SRAM 14nm shrink 10,000,000 Announced SRAM cell sizes Projected SR
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 / Slide 27
Slide 28: Share buy back program
Share buy back program • € 1 billion, 24 month share buy back program 1000 • 56% of program executed 800 million euros • 20.7 million shares 600 repurchased at an average Q3 400 price of € 26.98 Q2 • weekly updates available on 200 ASML’s website Q1 0 2011 / Slide 28
Slide 29: Outlook and summary
Outlook and summary / Slide 29
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
Slide 31: / Slide 31
/ Slide 31