Slide 1: Q3 2005 Results
Q3 2005 Results October 12, 2005
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 Accomplishments Q3 2005 Financial summary Q4 outlook Company focus First glance at 2006
Slide 4: Accomplishments Q3 2005
Accomplishments Q3 2005
Slide 5: Financial accomplishments Q3 2005
Financial accomplishments Q3 2005 Solid execution in a light shipment quarter Revenue of € 533 million Shipped 39 systems (28 new systems) Net profit of € 48 million Gross margin 37% Operating profit 13% Cash generation of € 156 million
Slide 6: Technology/market accomplishments Q3 2005
Technology/market accomplishments Q3 2005 Technology Continued strong ramp of TWINSCAN TM XT:1400 for 65-nm volume manufacturing as we shipped 28 units in 9 months, strengthening our leadership position in ArF Significant progress in immersion technology as we delivered 9 units to date and have 10 s
Slide 7: Financial summary
Financial summary
Slide 8: Total revenues M€
759 609 1493 329 616 763 Total revenues M€ 2673 1589 1959 1180 1000 1500 2000 2500 3000 2000 2001 2002 2003 H2 H1 Q1 Q2 Q3 Q4 1543 2004 2465 2005 1981
Slide 9: Revenue breakdown: Q3 2005
units Others TWINSCAN i-line KrF ArF Revenue breakdown: Q3 2005 Value per type Value per technology TWINSCAN 87% Others 13% Value per region Value per end-use Foundry 25% Memory 34% IDM 37% KrF 24% ArF 71% i-line 5% U.S. 35% Taiwan 14% Korea 24% China 14% Europe 11% ROW 2% Numbers have been rounded
Slide 10: Profit & Loss statement M€
Q2 05 Q3 05 YTD 04 YTD 05 Net sales Gross margin Gross margin % R&D costs SG&A costs Operating income Operating income % Net income Net income % Profit & Loss statement M€ ASML, Nikon Corporation and Carl Zeiss SMT AG agreed to a comprehensive settlement of legal proceedings and cross-license of pat
Slide 11: Cash flow M€
Q 2 05 Q3 05 YTD 04 YTD 05 Net income Depreciation and amortization Effects of changes in assets and liabilities Cash flow from recurring operations Cash flow from investing activities Cash flow from financing activities Effect of changes in exchange rates on cash Net cash flow Cash flow M€ Numbers
Slide 12: Strong cash generation performance
Strong cash generation performance Net cash = Cash and cash equivalents minus Convertible subordinated bonds
Slide 13: Balance sheet as of September 25, 2005 M€
ASSETS June 2005 Sep 2005 Cash and cash equivalents Accounts receivable, net Inventories, net Other assets Tax assets Fixed assets LIABILITIES and SHAREHOLDERS’ EQUITY Current liabilities Tax liability Long term debts Shareholders’ equity Balance sheet as of September 25, 2005 M€ 1 ASML has re-evalu
Slide 14: Backlog: litho units vs. value
Backlog: litho units vs. value New and used systems
Slide 15: Backlog as of September 25, 2005
New Systems Used Systems Total Backlog Units Value ASP Backlog Backlog Backlog as of September 25, 2005 M€ 1,216 M€ 29 M€ 1,245 M€ 15.8 M€ 2.9 M€ 14.3 Numbers have been rounded for readers’ convenience 83% of unit backlog carry Q4 05 + Q1 06 shipment dates Q3 net bookings of 46 systems (38 new) with
Slide 16: Backlog lithography per September 25, 2005
Backlog lithography per September 25, 2005 Total value M€ 1,245 Value per type Value per technology TWINSCAN 93% Others 7% I-line 7% ArF 68 % Value per region Value per end-use U.S. 22% Foundry 17% Memory 56% Taiwan 20% IDM 27% Korea 37% KrF 25% ROW 9% Europe 12% Numbers have been rounded for reader
Slide 17: Q4 outlook
Q4 outlook ASML expects to ship 40 systems in Q4 2005 Backlog supports new tool ASP of M€ 13.0 as product mix favors 300-mm KrF systems. New plus refurbished tool ASP is M€ 10.0 Backlog supports gross margin of 36-38% for Q4 Q4 bookings at about the same level as Q3 assuming foundry customers re-sta
Slide 18: Company focus 2005
Company focus 2005 Technology leadership Increase R&D budget to M€ 85 level , net of credit, early in 2006 to support ASML’s commitment to technology leadership Deliver 4th generation immersion TWINSCAN XT:1700i starting Q1 2006 for ramp in Q2 Ramp non-critical layer tools for delivery in Q4 2005 Le
Slide 19: First glance at 2006
First glance at 2006 Market trends Single digit growth of semiconductor revenue expected by industry analysts in 2006 Current booking trend confirms: Foundry: Cautious ordering awaiting improved visibility Memory: Strong ordering to support shrink roadmap (45 nm for Flash) and production capacity ra
Slide 20: First glance at 2006 - continued
First glance at 2006 - continued Opportunities for ASML Immersion technology implementation at 45-nm volume manufacturing with TWINSCAN XT:1700i Market share gains through realization of production ramps at new customers Semiconductor growth above the base case scenario ASML 2006 baseline revenues a
Slide 21: Commitment
Commitment