Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Q1 2007 Earnings Presentation
32 slides from Asml Holding Nv's earnings presentation, Apr 18, 2007
Slide 1: ASML 2007 1st Quarter Results
ASML 2007 1st Quarter Results Confirming growth for 2007 April 18, 2007
Slide 2: Safe Harbor
Safe Harbor “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semico
Slide 3: Agenda
Agenda z ASML overview z Financial summary z Market z Accomplishments z Immersion / Slide 3
Slide 4: ASML overview
ASML overview The world’s leading supplier of lithography equipment Key facts: Customers Headquarters: Veldhoven, the Netherlands Revenue 2006 ~ €3.6 B Market cap ~ €9 B Serving 85% of the top 20 IC Employees Q1 ’07 ~ 6000 manufacturers in the world / Slide 4
Slide 5: Financial summary
Financial summary / Slide 5 \ as ASML
Slide 6: Revenues
Total revenues M€ - Record first quarter 4000 3,597 3500 3000 1068 2,529 2,465 Q4 Revenues 2500 548 785 958 Q3 2000 1,543 533 Q2 1500 Q1 611 526 763 942 1000 370 616 500 329 960 685 629 318 453 0 2003 2004 2005 2006 2007 / Slide 6
Slide 7: Revenue breakdown: Q1 2007
Revenue breakdown: Q1 2007 Value per type Value per technology i-line Other systems 10% 7% KrF 34% ArF TWINSCAN 56% 93% TWINSCAN Others ArF KrF i-line Units 61 16 24 30 23 Value per region Value per end-use Taiwan IDM Europe 15% 16% 10% Korea 31% U.S. Memory Foundry 17% ROW Japan China 69% 15% 8% 9%
Slide 8: Profit & Loss statement M€
Profit & Loss statement M€ Q4 06 Q1 07 Net sales 1,068 960 Gross profit 439 393 Gross margin % 41.1% 40.9% R&D costs 107 116 Amortization of in process R&D 0 23 SG&A costs 52 56 Operating income 280 197 * Operating income % 26.2% 20.5% Net income 206 153 Net income % 19.3% 16.0% * Excluding one-off
Slide 9: System average selling price (ASP)
System average selling price (ASP) z ASP of all systems decreased to € 11.2 million due to: z Mix of shipped tools favoring i-line and KrF due to market share gains in less critical systems z High number of used equipment / Slide 9
Slide 10: Key financial trends 2006 - 2007
Key financial trends 2006 - 2007 Profit & Loss Statement M€ Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Units 51 72 71 72 77 Sales 629 942 958 1068 960 Gross profit 252 381 391 439 393 Gross margin % 40.0% 40.4% 40.8% 41.1% 40.9% R&D 87 92 100 107 116 Amortization in process R&D 23 SG&A 50 51 51 52 56 Operating i
Slide 11: Cash flow M€
Cash flow M€ Q4 06 Q1 07 Net income 206 153 Depreciation and amortization 32 50 Changes in tax assets and liabilities (45) 31 Effects of changes in inventories 51 (109) Effects of changes in other assets and 120 48 liabilities Cash flow from operations 364 173 Cash flow from investing activities (21
Slide 12: Balance sheet as of April 1, 2007 M€
Balance sheet as of April 1, 2007 M€ ASSETS Dec 2006 Apr 2007 Cash and cash equivalents 1,656 42 % 1,463 36 % Accounts receivable, net 673 17 % 649 16 % Inventories, net 809 20 % 907 23 % Other assets 182 5% 207 5% Tax assets 342 9% 320 8% Fixed assets 289 7% 483 12 % TOTAL ASSETS 3,951 100% 4,029 1
Slide 13: Backlog as of April 1, 2007
Backlog as of April 1, 2007 New Systems Used Systems Total Backlog Backlog Backlog Units 146 2 148 Value M€ 2,157 M€ 6 M€ 2,163 ASP M€ 14.8 M€ 3 M€ 14.6 • 78 % of unit backlog carry Q2 + Q3 2007 shipment dates • Q1 net bookings of 62 systems with a value of € 911 million including 59 new tools with
Slide 14: Backlog: litho units and value
Backlog units 0 20 40 60 80 100 120 140 160 180 200 Mar 03 / Slide 14 Jun 03 Sep 03 Dec 03 Mar 04 Jun 04 Used systems Sep 04 Dec 04 Mar 05 Jun 05 New systems Sep 05 Backlog: litho units and value Dec 05 Mar 06 Jun 06 Sep 06 Backlog value Dec 06 Mar 07 0 500 1000 1500 2000 2500 Backlog value M€
Slide 15: Backlog lithography per April 1, 2007
Backlog lithography per April 1, 2007 Total value € 2,163 million Value per type Value per technology TWINSCAN ArF immersion i-line 97% 30 % 8% KrF Other systems ArF dry 22% 3% 40 % Value per region Value per end-use Europe Taiwan 27% Memory 13% 54% U.S. IDM 30% Korea 31% 14% Singapore China 4% Japa
Slide 16: Backlog summary
Backlog summary z Backlog value increased due to: z Immersion bookings (wet ArF) valued at € 197 million or 21% of total bookings z Dry ArF bookings valued at € 435 million or 47% of total bookings z Q1 bookings strength is related to leading edge capacity additions and process development tools for
Slide 17: Market
Market GY / Slide 17 ys ASML
Slide 18: Trends by sector - Flash
Trends by sector - Flash z Gartner Dataquest forecast 48% flash unit growth in 2007 z ASML’s current shipment plan supports forecast with no significant overcapacity in flash by the end of 2007 z Sensitivity studies around the forecast indicates that a +/- 10% demand variation results in a +/- 1 cal
Slide 19: Trends by sector - DRAM
Trends by sector - DRAM z Gartner Dataquest forecast 36% DRAM unit growth in 2007 z ASML’s current shipment plan supports forecast with no overcapacity in DRAM by the end of 2007 z Sensitivity studies around the forecast indicates that a +/- 5% demand variation results in a +/- 1 calendar quarter sh
Slide 20: Trends by sector - Foundry and IDM
Trends by sector - Foundry and IDM Foundry z Utilization in factories appears to have bottomed in Q1 z 16% of Q1 bookings in value are received from foundries z Announced to ramp immersion by the end of 2007 with volume manufacturing starting in 2008/2009 IDM z IDM investment level is in-line with i
Slide 21: Accomplishments
Accomplishments / Slide 21 \ as ASML
Slide 22: Q1 accomplishments
Q1 accomplishments Growth z Revenue 960 million, up 53% year-on-year z Record high backlog at € 2,163 million z Brion acquisition completed Profitability z Recurring net income (excluding amortization in process R&D Brion) at 176 million or 18.3 % of sales z Gross margin at 40.9% Cash z Cash flow fr
Slide 23: Brion accomplishments
Brion accomplishments z Integration with ASML has begun and in progress z Brion leads the worldwide market for optical proximity correction (OPC) verification, and is rapidly expanding in the OPC market z Over 20 semiconductor manufacturers utilize Tachyon to verify their designs z With Brion produc
Slide 24: Excess cash strategy – improving shareholder value
Excess cash strategy – improving shareholder value z ASML is a growth company z Regular share buybacks is optimum instrument to create significant value z Dividend is certainly an option in slower growth model z ASML will maintain a strong gross cash liquidity buffer of M€1,000 to M€1,500 and use up
Slide 25: Q2 2007 outlook
Q2 2007 outlook z ASML expects to ship 69 systems z ASP for new + refurbished systems expected to be € 12.0 million z Gross margin will range between 40 - 41% z R&D is expected to increase to € 120 million net of credit (including Brion) to strengthen technology leadership and enabling lithography g
Slide 26: Immersion
Immersion GY / Slide 26 ys ASML
Slide 27: XT:1700i performance
XT:1700i performance z XT:1700i’s are now running in production z Imaging down to 45 nm z Overlay less than 7 nm z Productivity greater than 122 wafers per hour z Defect levels improving continuously z Proven production machine output well over 1000 wafers per day per machine with a clear roadmap to
Slide 28: Knowledge gathered with over 40 machines at 19 customers
Knowledge gathered with over 40 machines at 19 customers The large installed base has enabled ASML to: z Build knowledge on immersion process specifics for all customer segments (logic, foundry, memory, microprocessors) z Develop best practices for immersion related defect optimization to enable hig
Slide 29: XT:1900i – 5th generation immersion
XT:1900i – 5th generation immersion z Only system available specified at 40 nm resolution and below in volume manufacturing z First shipment planned for early Q3 2007 z Evolutionary single barrel catadioptric lens shows excellent performance / Slide 29
Slide 30: XT:1900i resolution performance of 36.5 nm
XT:1900i resolution performance of 36.5 nm Near perfect image contrast at max. scan speed of 600 mm/s Dipole Illumination k1= 0.255 36.5 nm dense lines C-quad Illumination k1= 0.258 37 nm horizontal and vertical dense lines / Slide 30
Slide 31: 2007 Outlook
2007 Outlook z Industry Analysts forecast about € 5.5 billion ($ 6.8 Billion) litho investment in 2007 (source: Gartner Dataquest and VLSI Research) z We expect overall increased market share and ramp of the XT:1900i in H2 2007 z ASML’s record current backlog of € 2.163 billion and Q1 results suppor
Slide 32: Commitment
Commitment