Slide 1: Press conference: ASML 2022 Fourth-Quarter and Full-Year Results
Press conference ASML 2022 Fourth-Quarter and Full-Year Results Peter Wennink – President & CEO Roger Dassen – CFO January 25, 2023 Live from the TWINSCAN Auditorium on ASML’s Campus in Veldhoven, The Netherlands Public
Slide 2: ASML reports €21.2 billion net sales and €5.6 billion net income in 2022
ASML reports €21.2 billion net sales and €5.6 billion net income in 2022 Despite challenging environment, continued strong sales growth expected in 2023 ASML 2022 Fourth-Quarter and Full-Year results Veldhoven, the Netherlands January 25, 2023 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 semiconductor end
Slide 4: Agenda
Agenda 01 Key messages Peter Wennink 02 Semiconductor Industry Peter Wennink 03 Financials Roger Dassen 04 Outlook Roger Dassen 05 Q&A January 25, 2023 Page 4 Public
Slide 5: Key messages
Key messages January 25, 2023 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: Semiconductor Industry
Semiconductor Industry January 25, 2023 Page 7 Public
Slide 8: The world is changing fast and technology can help unlock the potential
The world is changing fast and technology can help unlock the potential 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 tec
Slide 9: Energy transition will be one of the market drivers over the coming decades
Energy transition will be one of the market drivers over the coming decades Semiconductors are crucial in generation, storage, distribution, consumption of electrical energy Generation Consumption Accelerated migration to different energy mix due to Accelerated conversion from fossil to electrical i
Slide 10: More integrated systems require both advanced and mature nodes
More integrated systems require both advanced and mature nodes An automotive integrated system has a spectrum of scalable, flexible computing solutions Actuators Domain/zone control Comms gateway Central core Smart control Compute intensive real-time actions Low latency communications System’s main
Slide 11: Customers are investing to support these demand drivers
Customers are investing to support these demand drivers Top three semiconductor manufacturers announced plans to invest >$300 billion in global capacity Arizona Ireland Israel Taiwan Korea $12bn $20bn $10bn $100bn $40bn New Mexico Texas Ohio Germany China Korea $3.5bn $17bn $20bn $17bn $11bn $45bn J
Slide 12: The total semiconductor market is expected to double in years
The total semiconductor market is expected to double in 10 years Analysts’ views on 2030 market are ranging from $1.0tn to $1.3tn $1.3tn $1.3tn $1.1tn $1.0tn Semi sales ($tn) $1.0tn $0.6tn $0.5tn $0.4tn 2019 2020 2021 2030 Sources: TechInsights, McKinsey, SEMI.org January 25, 2023 Page 12 Public
Slide 13: Scaling up means building capacity and finding talent around the world
Scaling up means building capacity and finding talent around the world Investing in our production capability Recruitment, onboarding and training ontin e ramp in e tended and ne actories be ond 202 ASML global factory network Network of factories extension plans for capacity beyond 2023 50,000 New
Slide 14: We remain committed to our ambitious ESG Sustainability goals
We remain committed to our ambitious ESG Sustainability goals and have taken important steps forward in 2022 Environment (example) Social (example) Governance (example) ▪ Connecting all buildings on headquarters ▪ Significantly scaling up investments in our ▪ ASML is one of founding members of the c
Slide 15: Geopolitics in the semiconductor industry
Geopolitics in the semiconductor industry TSMC CEO Says Export Controls Weaken Trust Among Countries Bloomberg, December 2022 Impact of Geopolitical Tumult on Businesses to Continue in 2023, Say Risk Experts Wall Street Journal, January 2023 Top European chip companies seek stability amid US-China d
Slide 16: Semiconductor industry is based on global collaboration
Semiconductor industry is based on global collaboration Customers • Commit early to innovation path • Test, qualify, scale lithography • Drive ecosystem for innovation Peers • Deliver critical infrastructure • Innovate manufacturing process steps Academic partners • Long-term academic tracks yield a
Slide 17: Risks and potential disruption
Risks and potential disruption End markets • Chip availability reduced & complicated for key verticals (cars, industrial IoT, medtech) • Supply chain disruption & retaliation risk Peers • Opportunities for co- development reduced further • Mutual trust damaged Academia • Talent inflow impacted • Fun
Slide 18: Financials
Financials January 25, 2023 Page 18 Public
Slide 19: Q4 results summary
Q4 results summary • Net sales of €6.4 billion, net system sales of €4.7 billion, Installed ase Management1 sales of €1.7 billion • Gross margin of 51.5% • Operating margin2 of 33.0% • Net income as a percentage of net sales of 28.2% • Earnings per share (basic) of €4.60 • Net bookings3 of €6.3 bill
Slide 20: 2022 - Highlights
2022 - Highlights ASML achieved a sales growth of 14%, reflecting the continued strong global demand for our products: • Net sales grew to €21.2 billion at 50.5% gross margin • Net income at €5.6 billion resulted in an EPS of €14.14 EUV lithography: • E V system sales grew 12% to €7.0 billion, recog
Slide 21: Net system sales breakdown (Yearly)
Net system sales breakdown (Yearly) 2022 Net system sales €15,4 0 million 2021 Net system sales €1 ,65 million January 25, 2023 Page 21 Public
Slide 22: Total net sales € million by End-use
Total net sales € million b End-use Installed Base Management1 Logic Memory 1 Installed Base Management equals our net service and field option sales January 25, 2023 Page 22 Public
Slide 23: Consolidated statements of operations € million
onsolidated statements o operations € million Year on Year 1 Other income includes the gain on the sale of Berliner Glas subsidiaries 2 Lithography systems do not include metrology and inspection systems 3 Net bookings include all system sales orders and inflation related adjustments, for which writ
Slide 24: Capital return to shareholders
Capital return to shareholders • ASML intends to declare a total dividend for the year 2022 of €5.80 per ordinary share. An interim dividend of €1.37 per ordinary share will be made payable on February 15, 2023 • Recognizing this (third) interim dividend and the two interim dividends of €1.37 per or
Slide 25: Outlook
Outlook January 25, 2023 Page 25 Public
Slide 26: Outlook Q1
Outlook Q1 • Net sales between €6.1 billion and €6.5 billion, including ◦ Installed Base Management1 sales of around €1.5 billion • Gross margin between 49% and 50% • R& costs of around €965 million • SG&A costs of around €285 million 1 Installed Base Management equals our net service and field opti
Slide 27: View on 2023 – continued strong sales growth expected
View on 2023 – continued strong sales growth expected • In 2023, we expect net sales growth of more than 25% with a slight improvement in gross margin relative to 2022 • Consumer driven end markets (PCs, smartphones) are still showing demand weakness, with some indications of softening in data cente
Slide 28: Questions & answers
Questions & answers January 25, 2023 Page 28 Public