Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Q4 2023 Earnings Presentation
29 slides from Asml Holding Nv's earnings presentation, Jan 24, 2024
Slide 1: Press conference ASML Fourth-quarter & full-year results 2023
Press conference ASML Fourth-quarter & full-year results 2023 Peter Wennink – President & CEO Roger Dassen – CFO January 24, 2024 Live from the TWINSCAN Auditorium on ASML’s Campus in Veldhoven, The Netherlands Public
Slide 2: ASML reports €27.6 billion net sales and €7.8 billion net income in 2023
ASML reports €27.6 billion net sales and €7.8 billion net income in 2023 2024 expected to be a transition year with sales similar to 2023 ASML 2023 Fourth-Quarter and Full-Year results Veldhoven, the Netherlands January 24, 2024 Public
Slide 3: Forward looking statements
Forward looking statements This document and related discussions contain statements that are forward-looking within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements with respect to plans, strategies, expected trends, including trends in the semiconductor
Slide 4: Agenda
Agenda • Industry developments and our progress Peter Wennink • Financials and Outlook Roger Dassen • Questions and Answers January 24, 2024 Page 4 Public
Slide 5: Industry developments and our progress
Industry developments and our progress Peter Wennink, President and CEO January 24, 2024 Page 5 Public
Slide 6: Investor key messages
Investor key messages • Global megatrends in the electronics industry, supported by a highly profitable and fiercely innovative ecosystem, are expected to continue to fuel growth across the semiconductor market • Growth in semiconductor end markets and increasing lithography intensity are driving de
Slide 7: Market expectations remain unchanged: around 1 trillion of sales by 2030
Market expectations remain unchanged: around 1 trillion of sales by 2030 Gartner Techinsights/VLSI IBS Total semiconductor revenue is expected to top $1 trillion by 2030 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 January 24, 2024 Page 7 Public
Slide 8: …underpinned by strong fundamental trends
…underpinned by strong fundamental trends Connected Climate change and Social and world resource scarcity economic shifts AI Cloud Artificial Energy Electrification, Working, Healthcare, infrastructure intelligence transition smart mobility learning remotely medical tech 5G Hyperconnectivity Edge Ag
Slide 9: History shows that a period of downturn is followed by significant growth
History shows that a period of downturn is followed by significant growth Past upturns required a steep ramp – we must be ready Semi market revenue growth YoY 2001 2009 2019 Now 80% 60% Sharp acceleration of 52% digitization during COVID… 60% 45% 30% YoY revenue growth [%] 40% 24% 20% 0% -20% -15% -
Slide 10: Our customers continue to invest
Our customers continue to invest 20+ fab projects (new fabs and expansions) are expected to take tools in 2024/2025 First tool 2024 First tool 2025 January 24, 2024 Page 10 Public
Slide 11: Growth in numbers of employees worldwide (year-end 2023)
Growth in numbers of employees worldwide (year-end 2023) Slide 11 January 24, 2024 EMEA NL US 2022: 22,715 2023: 22,860 2023: 25,085 40% non-Dutch 2022: 7,505 (incl. NL) 123 nationalities 2023: 8,225 Total worldwide Asia 2022: 39,090 144 nationalities* 2022: 8,870 20% female* 2023: 9,110 2023: 42,42
Slide 12: In 2023, we achieved important progress towards our ESG Sustainability goals
In 2023, we achieved important progress towards our ESG Sustainability goals Environment Social Governance ▪ Reduced operations and buildings footprint (scope ▪ Invested around €14 million via cash and in-kind ▪ Recognition by ESG rating agencies: 1+2) by 8% in 2023 (vs 2022) through combination of:
Slide 13: Shipped first modules of first High NA EUV system
Shipped first modules of first High NA EUV system January 24, 2024 Page 13 Public
Slide 14: Arrival first modules of first High NA EUV system
Arrival first modules of first High NA EUV system January 24, 2024 Page 14 Public
Slide 15: High NA EUV (EXE): The result of 40 years evolution at ASML
High NA EUV (EXE): The result of 40 years evolution at ASML • Wavelength first, now Numerical Aperture of the optics • After 0.33 NA EUV, the 0.55 NA EUV (High NA) tool is the next logical step • High NA EUV lithography will enable multiple future nodes, starting at the sub 2nm logic node, and follo
Slide 16: High NA EUV
High NA EUV Increased NA enables shrink to 1.7x smaller features and 2.9x increased transistor density Increased contrast enables 40% improvement in local CDU at 1.4x lower dose Lens & illuminator Anamorphic 0.55NA optics design for high contrast and Reticle Stage Horizontal Source position EXE:5000
Slide 17: Financials
Financials Roger Dassen, Executive Vice President and CFO January 24, 2024 Page 17 Public
Slide 18: Q4 results summary
Q4 results summary Q4 2023 Net sales €7.2 billion Net system sales €5.7 billion Installed Base Management1 sales €1.6 billion Gross Margin 51.4% Operating Margin2 33.1% Net income as a percentage of net sales 28.3% Earnings per share (basic) €5.21 Net bookings3 €9.2 billion including EUV bookings of
Slide 19: 2023 - Business summary
2023 - Business summary ASML achieved a sales growth of 30%, reflecting the continued strong global demand for our products: • Net sales grew to €27.6 billion at 51.3% gross margin • Net income at €7.8 billion resulted in an EPS of €19.91 EUV lithography: • EUV system sales grew 30% to €9.1 billion,
Slide 20: Net system sales breakdown (Yearly)
Net system sales breakdown (Yearly) 2023 Net system sales €21,939 million 2022 Net system sales €15,430 million January 24, 2024 Page 20 Public
Slide 21: Total net sales € million by End-use
Total net sales € million by End-use Installed Base Management1 Logic Memory 1 Installed Base Management equals our net service and field option sales January 24, 2024 Page 21 Public
Slide 22: Consolidated statements of operations € million
Consolidated statements of operations € million Year on Year 2019 2020 2021 2022 2023 Net sales 11,820 13,979 18,611 21,173 27,559 Gross profit 5,280 6,798 9,809 10,700 14,136 Gross margin % 44.7 48.6 52.7 50.5 51.3 Other income 1 — — 214 — — R&D costs (1,968) (2,201) (2,547) (3,254) (3,981) SG&A co
Slide 23: Capital return to shareholders
Capital return to shareholders • ASML intends to declare a total dividend for the year 2023 of €6.10 per ordinary share. An interim dividend of €1.45 per ordinary share will be made payable on February 14, 2024 • Recognizing this (third) interim dividend and the two interim dividends of €1.45 per or
Slide 24: Outlook
Outlook January 24, 2024 Page 24 Public
Slide 25: Outlook Q1 2024
Outlook Q1 2024 Outlook Q1 2024 Net sales between €5.0 billion and €5.5 billion including Installed Base Management1 around €1.3 billion Gross margin between 48% and 49% R&D costs around €1,070 million SG&A costs around €300 million 1 Installed Base Management equals our net service and field option
Slide 26: View on 2024 – transition year preparing for significant growth in 2025
View on 2024 – transition year preparing for significant growth in 2025 • Similar net sales with a slightly lower gross margin, relative to 2023 • Estimated annualized effective tax rate between 16% and 17% • Uncertainty remains in the market due to several global macro concerns o The semiconductor
Slide 27: Questions & Answers
Questions & Answers January 24, 2024 Page 27 Public
Slide 28: Thank you
Thank you January 24, 2024 Public
Slide 29: Thank you
Thank you January 24, 2024 Page 29 Public