Slide 1: Thomas Weisel Partners Technology Telecom Internet 2008
Thomas Weisel Partners Technology Telecom Internet 2008 Craig DeYoung, VP IR and Corporate Communications San Francisco, February 5, 2008
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 ASML overview Drivers for growth - ASML in a "sweet spot" Financial performance Outlook / Slide 3
Slide 4: ASML: The world's largest supplier of lithography equipment
ASML The world's largest supplier of Lithography equipment Revenue evolution for 5 years 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Region 1 0 1 2.5 8.5 7.5 10.5 11.5 10.5 21 21 19 19.5 25.5 31 36 41 41 30 54 45 53 56.5 63 Market share evolution Source: VLSI Research Market
Slide 5: ASML business model
ASML business model Pure focus on lithography justified by high market growth potential Sustainable business model due to ever growing barriers to entry: Ever growing R&D critical mass affordable only by the leader Ever growing internal knowledge accumulation time Ever growing "switch" costs at cust
Slide 6: Pure play Lithography, Engines for growth
Pure play Lithography, Engines for growth / Slide 6
Slide 7: ASML in the sweet spot of semiconductor equipment supply
ASML: In the "sweet spot" of semiconductor equipment supply - Pure focus on Lithography justified by high market growth potential Lithography: the enabler of shrink for lower cost per chip Lithography benefits from Multiple Growth Drivers Industry segment growth Process complexity driving more litho
Slide 8: Litho market expected to grow for the next 5 years
Source: ASML Base Case*: with stable litho unit demand, litho market expected to grow for the next 5 years due to tool ASP increase CAGR 2006-12 = 13.0% * Disclaimer: model is not a forecast but a market trajectory simulation - first years influenced in particular by actual to model adaptation Prese
Slide 9: Leading position - immersion products
Leading position - immersion products / Slide 9
Slide 10: Significance of the immersion market in 2008
Significance of the immersion market in 2008 ASML immersion net sales expected to almost double in 2008 Volume of immersion systems will lead to significant system ASP growth - 34 immersion systems in backlog at end Q4 valued at € 1,010 million, ASP € 29.7M Further market gains in Japan expected bas
Slide 11: ASML immersion lithography leadership
> 750 TWINSCAN systems shipped worldwide ASML immersion lithography leadership: >70 systems shipped to >20 customer Worldwide US EUROPE ASIA 18+ Immersion Systems 8+ Immersion Systems 40+ Immersion Systems / Slide 11
Slide 12: Financial performance
Financial performance / Slide 12
Slide 13: Total net sales by quarter 2003-2007
2003 2004 2005 2006 2007 Q1 318 453 685 629 960 Q2 329 616 763 942 935 Q3 370 611 533 958 940 Q4 526 785 548 1065 974 Total net sales M€ 526 370 329 318 785 611 616 453 548 533 763 685 629 1,543 2,465 2,529 942 958 1068 3,597 960 935 940 973 3,809 / Slide 13
Slide 14: Stable financial performance in dynamic environment
Stable financial performance in dynamic environment Robust results with 7 quarters of over € 900 Million revenue, while Memory prices fell dramatically Order intake varied between 30 and 95 litho systems per quarter Recurring operating margin is between 20.5% and 26.2% / Slide 14
Slide 15: Outlook
Outlook 1Slide 15. S Yyy ASML
Slide 16: Market in general
Market in general Concern continues over global economic weakness Slowdown of overall 2008 semiconductor capex forecast by analysts and indicated by customers Independent market researchers still expect double digit semiconductor unit growth in 2008 / Slide 16
Slide 17: Current market conditions - ASML drivers
Current market conditions - ASML drivers Short term: Flash Ongoing capacity additions at 55 nm node Higher Flash chip densities require 45 nm imaging Flash unit growth expected to continue Mid term: DRAM DRAM invests in immersion for 55 nm for higher density chips Installing immersion to reduce cost
Slide 18: ASML market share growth expected to continue in 2008
ASML market share growth - expected to continue in 2008 Europe Worldwide litho shipments by region Source: ASML and Gartner Dataquest Asia non Japan Japan US Progress in Japan, Microprocessors and i-Line / Slide 18
Slide 19: Summary
Summary ASML, as the leading lithography equipment supplier, is well positioned for growth Multiple drivers underpin ASML's growth opportunity ASML's financial performance shows remarkable stability in dynamic environments / Slide 19
Slide 20: Commitment
Commitment Exhibit 99.2 ASML Media Relations Contacts Lucas van Grinsven — Corporate Communications — +31 40 268 3949 ASML Investor Relations Contacts Craig DeYoung — Investor Relations — +1 480 383 4005 Franki D’Hoore — Investor Relations — +31 40 268 6494 ASML Initiates Dividend Payments, Starting