Slide 1: UBS Conference
UBS Conference Franki D'Hoore - Director Investor Relations London, 13 March, 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 Market Business performance Financial summary Outlook
Slide 4: 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: Market
Market Y sams & ASML
Slide 6: Market in general
Market in general Global economic weakness sentiment Slowdown of overall 2008 semiconductor capex forecast by analysts and customers Our immersion products enable technology transfers down to the 45nm node which are executed urgently by customers to reach appropriate integration and cost targets nee
Slide 7: Factory utilization
Factory utilization High factory utilization + improved demand triggers equipment buys Note: Leading edge is defined as 90 nm and below. Leading Edge 40% 50% 60% 70% 80% 90% 100% 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 Source: Gartner (Dec 2007) 2008
Slide 8: Semiconductor inventory
Source: Gartner Semiconductor inventory Healthy semiconductor inventories and increasing chip demand should trigger equipment purchases
Slide 9: NAND Flash: fast transition to advanced nodes
NAND Flash : Fast transition to advanced nodes to enable higher capacity and lower cost devices Source: DRAM eXchange
Slide 10: Strong transition to Gb DRAM requiring immersion technology
Strong transition to 1 Gb DRAM occurring requiring immersion technology Source: Gartner Dataquest ( December 2007) Source: Gartner Dataquest ( December 2007) 1Gb DRAM product transition forecast
Slide 11: Litho demand scenario analysis: Top-Down vs. Bottom-Up
Bottom-Up Bottom-Up Top-Down Top-Down Year IC segment (main) Customer Requested Units Corresponding IC# growth Average Analysts Simulated Units 2008 NAND 124 31% 38% 138 DRAM 143 7% 14% 178 MPU 31 3% 16% 50 LOGIC 93 8% 11% 120 TOTAL 400 (391) 8% 12% Avg 500 (486) Litho demand scenario analysis: Top-
Slide 12: Litho unit demand
Litho unit demand DRAM NAND MPU LOGIC+MCU+DSP Bottom-Up- Approx 400 units Top-Down - Approx 500 units Litho demand analysis - Units: Top-Down vs. Bottom-Up Source: ASML February 2008
Slide 13: Solid order book supports robust H1 revenue
Solid order book supports robust H1 revenue Backlog is 89 systems valued at &128; 1,697 Million 78% of backlog is shippable in the next 6 months Immersion represents 60% of backlog Solid IDM demand - 26% of backlog - underpins the non memory portion of backlog Limited exposure to second tier DRAM ma
Slide 14: 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 Further market gains in Japan expected based upon highest productivity with 14 immersion systems installed productivity with
Slide 15: ASML in the sweet spot of semiconductor equipment supply
ASML: In the "sweet spot" of semiconductor equipment supply Lithography: the enabler of shrink for lower cost per chip Lithography benefits from multiple growth drivers Industry segment growth Process complexity driving more litho layers Higher ASP tools ASML reaping the reward of immersion leadersh
Slide 16: Total CapEx/Litho CapEx
Total CapEx/Litho CapEx Source: ASML February 2008 NAND FLASH Litho CapEx versus total - 2006 to 2008 DRAM Litho CapEx versus total - 2006 to 2008
Slide 17: Business performance
Business performance 1 ide 17
Slide 18: Quarters of robust Operating Margin performance
8 Quarters of robust Operating Margin performance ASML Operating Margin
Slide 19: Improving shareholder value in 2007
Improving shareholder value in 2007 In 2007, ASML returned &128; 1,372 million to shareholders through share buyback programs and a capital repayment Reduced outstanding shares by 72 million shares Issued 26 million shares for convertible bond redemption The number of outstanding basic shares reduce
Slide 20: Improving shareholder value going forward
Improving shareholder value going forward ASML is committed to return cash above its target cash & cash equivalents buffer of &128; 1 billion to &128; 1.5 billion to shareholders The share buyback program of 14 million shares to cover for outstanding employees stock options has been completed ASML i
Slide 21: Financial summary
Financial summary 1 ide 21
Slide 22: Total net sales by quarter
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&128; 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 23: Net sales breakdown in value: Q4 2007
Memory Foundry IDM R&D East 70 17 13 5 West North Net sales breakdown in value: Q4 2007 Technology Region End-use Foundry 17% Memory 70% IDM 13% ROW U.S.A Europe Taiwan Korea China Japan Stp 15 20 10 15 31 0 9 West North USA 21% Taiwan 15% Korea 31% Japan 9% Europe 10% ROW 14% Sales in units ArF imm
Slide 24: Key financial trends 2006 - 2007
Key financial trends 2006 - 2007 Numbers have been rounded for readers' convenience
Slide 25: Backlog as of Dec 31, 2007
Backlog as of Dec 31, 2007 78% of backlog or &128; 1,328 million system sales carry Q1 '08 + Q2 '08 shipment dates Q4 net bookings of 54 systems with a value of &128; 803 million including 45 new tools with an ASP of &128; 16.9 million Note: Due to possible customer changes in delivery schedules and
Slide 26: Backlog: value and litho units
Backlog: value and litho units Backlog Jan 03 Mar 03 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 Dec07 Backlog value 1030 870 678 859 993 1357 1800 2053 1691 1377 987 1245 1434 1596 1830 2126 2146 2163 1745 1769 1697 S
Slide 27: Backlog lithography in value per Dec 31, 2007
Memory IDM Foundry R&D East 66 26 8 0 West North Backlog lithography in value per Dec 31, 2007 Total value &128; 1,697 million Region End-use Foundry 8% Memory 66% IDM 26% KrF ArF dry ArF wet I line East 10 28 60 2 West North Technology i-Line 2% ArF immersion 60% KrF 10% ArF dry 28 % Numbers have b
Slide 28: Outlook
Outlook Y _ & ASML
Slide 29: Q1 2008 outlook
Q1 2008 outlook ASML expects to ship 50 systems ASP for new + refurbished systems expected to be &128; 16.3 million Gross margin between 40 - 41% R&D is expected at &128; 127 million net of credit SG&A is expected at &128; 58 million
Slide 30: 2008 Outlook
2008 Outlook Although independent market researchers still expect a double digit increase in demand for integrated circuit units in 2008, which should translate into lithography market expansion in 2008, we are awaiting confirmation of this potential growth through the exact level of Q1 and Q2 booki
Slide 31: & ASML
G & ASML Commitment