Slide 1: ASML 2008 First Quarter Results
ASML 2008 First Quarter Results ASML continues to execute its leadership strategy and expects gradual order pick-up April 16, 2008
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 backlog, IC unit demand, financial results, average sales pri
Slide 3: ASML - the world's largest supplier of lithography equipment
ASML - the world's largest supplier of lithography equipment Source: Semi & ASML Leadership in immersion for volume chip manufacturing ASML Canon Nikon East 65 11 24 West North Canon 11% ASML 65% Nikon 24% ASML AMAT TELL KLA East 22 32 25 11 10 West North KLA Tencor ASML Tokyo Electron Lam Research
Slide 4: Agenda
Agenda Market Business summary Outlook
Slide 5: Market
Gy & ASML
Slide 6: Market in general
Market in general Global economic weakness drives slowdown of overall 2008 semiconductor capex forecast by analysts and customers DRAM makers reduce capacity plan and are driving prices of memory chips up Two Flash makers delay new factories, flash prices continue to be weak Customer factory utiliza
Slide 7: Industry analyst 2008 memory forecasts
Industry analyst 2008 memory forecasts Source: ASML MCC 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 Gartner 31 18 20 21 IC Insights 15 15 18 18 8 VLSIR 12 14 14 14.5 14.5 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 Gartner 49 51 52 40 IC Insights 33 33 20 20 35 VLSIR 28 29 29 28 27.5 Unit Growth Time of Forecast DRAM Unit Grow
Slide 8: ASML affected by changing market environment
ASML affected by changing market environment Recent capacity delay decisions by one DRAM factory expansion and two new Flash factories Rationalization efforts amongst Taiwanese DRAM players ongoing Overall economic growth uncertainty delaying capex decisions for Foundries Demand for immersion tools
Slide 9: ASML's assessment of 2008 worldwide lithography demand
ASML's assessment of 2008 worldwide lithography demand March 2008 ASML shipped 260 machines in 2007 with ASP of &128; 12.9 million ASML expects market share gains and substantial ASP growth in 2008 Numbers include new and used equipment Source: ASML April 2008 April 2008
Slide 10: ASML technology leader
ASML technology leader
Slide 11: Immersion technology used in volume production for 55 nm and beyond
Source: ASML Immersion technology used in volume production for 55 nm resolution and beyond ASML immersion installed base 86 tools 25 in the US 53 in ASIA, (16 in Japan) 8 in Europe
Slide 12: Immersion: Fastest technology transition to date
Immersion: Fastest technology transition to date 0 1 2 3 4 5 6 7 Jan '05 Mar '05 May '05 Jul '05 Sep '05 Nov '05 Jan '06 Mar '06 May '06 Jul '06 Sep '06 Nov '06 Jan '07 Mar '07 May '07 Jul '07 Sep '07 Nov '07 Jan '08 # wafers exposed on ASML immersion systems (millions) XT:1700i 1st shipment XT:1400
Slide 13: Next generation lithography: EUV
Next generation lithography: EUV Prototypes shipped in 2006 Pilot production machine to ship in early 2010 Albany Leuven
Slide 14: The world's first chips using full-field EUV
The world's first chips using full-field EUV SRAM cell and full working transistor showed in February 2008 Alpha Demo Tool EUV print 15 GB 3D thick mask panoramic simulation Reference 193 nm print of SRAM bit cell RHEM XP4502J Sample NMOS transistor curve from EUV wafer 0 0 0 0 0 0 0 0 0 0 1 1 1 1 V
Slide 15: Business summary
Business summary sows & ASML
Slide 16: Q1 results
Q1 results 8th consecutive quarter with sales over &128; 900 million Solid operating margin of 20.5% Cash generation &128; 263 million from operations Backlog at &128;1,167 million, 65 systems Booked 26 systems Shipped 14 immersion tools Record average selling price for new shipped systems of &128;
Slide 17: Total net sales by quarter 2003-2008
2003 2004 2005 2006 2007* 2008 Q1 318 453 685 629 949 919 Q2 329 616 763 942 930 Q3 370 611 533 958 934 Q4 526 785 548 1068 955 Total net sales M&128; 1,543 2,465 2,529 3,597 3,768 *2007 numbers are adjusted retrospectively with respect to the change in accounting policy.
Slide 18: Net sales breakdown in value: Q1 2008
Net sales breakdown in value: Q1 2008 Memory Foundry IDM R&D East 64 13 23 5 West North End-use Foundry 13% Memory 64% IDM 23% Numbers have been rounded for readers' convenience Technology KrF ArF dry ArF immersion I line East 14 32 51 3 West North KrF 14% i-Line 3% ArF immersion 51% ArF dry 32% ROW
Slide 19: Consolidated statement of operations
* 2007 numbers are adjusted retrospectively with respect to the change in accounting policy. Numbers have been rounded for readers' convenience. Consolidated statement of operations M&128;
Slide 20: Key financial trends 2007 - 2008
Key financial trends 2007 - 2008 Consolidated statement of operations M&128; * 2007 numbers are adjusted retrospectively with respect to the change in accounting policy. Numbers have been rounded for readers' convenience.
Slide 21: Cash flow
Cash flow M&128; * 2007 numbers are adjusted retrospectively with respect to the change in accounting policy. Numbers have been rounded for readers' convenience.
Slide 22: Balance sheet as of March 30th, 2008
Balance sheet as of March 30th, 2008 M&128; * 2007 numbers are adjusted retrospectively with respect to the change in accounting policy. Numbers have been rounded for readers' convenience.
Slide 23: 77% of backlog carries Q2 + Q3 shipment dates
77% of backlog or &128; 896 million system sales carry Q2 + Q3 shipment dates Q1 net bookings of 26 systems with a value of &128; 312 million including 17 new tools with an ASP of &128; 15.7 million Note: Due to possible customer changes in delivery schedules and to cancellation of orders, our backl
Slide 24: Backlog: value and litho units
Backlog: value and litho units Backlog Jan 03 39541 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04 Oct 04 Jan 05 Apr 05 Jul 05 Oct 05 Jan 06 Apr 06 Jul 06 Oct 06 Jan 07 Apr 07 Jul 07 Oct 07 Jan 08 Apr 08 Backlog value 1030 870 678 859 993 1357 1800 2053 1691 1377 987 1245 1434 1596 1830 2126 2146 2163 1745 1769
Slide 25: Backlog lithography in value per March 30th, 2008
Backlog lithography in value per March 30th, 2008 Total value M&128; 1,167 Technology i-Line 3% ArF immersion 57% KrF 9% ArF dry 31% Region USA 20% Taiwan 13% Korea 30% Other 6% Europe 13% Japan 9% China 9% End-use Memory 56% IDM 30% Foundry 14% Numbers have been rounded for readers' convenience
Slide 26: Outlook
Outlook
Slide 27: Q2 2008 outlook
Q2 2008 outlook ASML expects to ship 42 systems ASP for new + refurbished systems expected to be &128; 17.0 million Gross margin approximately 40% R&D is expected at &128; 130 million net of credit SG&A is expected at &128; 58 million Given current market weakness, we are trimming Manufacturing and
Slide 28: Outlook
Outlook Order pattern translates into weaker net sales for next 2 quarters bringing our current full year sales estimate to about 10% less than our record sales number in 2007 We expect gradual unit order pick-up from Q2 onwards, due to: Improvements in memory supply/demand balance Volume production
Slide 29: Commitment
Commitment