Slide 1: ASML 2014 Fourth Quarter and 2014 Annual Results
Public ASML posts record full-year 2014 sales of € 5.86 billion Announces new € 1 billion share buyback program ASML 2014 Fourth Quarter and 2014 Annual Results Veldhoven, the Netherlands January 21, 2015
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 21 January 2015 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, expected customer demand in specified market segments, expected trends, systems
Slide 3: Agenda
Public Slide 3 21 January 2015 Agenda • Investor key messages • 2014 Highlights • Business environment • Outlook • Technology highlights • Financial statements
Slide 4: Investor key messages
Public Slide 4 21 January 2015 Investor key messages
Slide 5: Investor key messages
Investor key messages Public Slide 5 • Shrink is the key industry driver supporting innovation and providing long term industry growth 21 January 2015 • Moore’s Law will continue and be affordable • Lithography enables affordable shrink and therefore delivers compelling value for our customers • ASM
Slide 6: 2014 Highlights
Public Slide 6 21 January 2015 2014 Highlights
Slide 7: 2014 – Highlights
2014 – Highlights Public Slide 7 21 January 2015 • Record net sales of € 5,856 million, up 12% vs 2013 • Gross margin 44.3% vs 41.5% in 2013 • Net income € 1,197 million, up 18% vs 2013 • Basic EPS € 2.74, up 16% versus 2013 • We achieved our target of 500 wafer per day productivity for EUV NXE:3300
Slide 8: Q4 results
Q4 results Public Slide 8 21 January 2015 • Net sales of € 1,494 million, 35 litho systems sold, valued at € 1,085 million, net service and field option sales at € 409 million • Average selling price of € 31.0 million per machine • Gross margin of 44.0% • Operating margin of 22.1% • Net bookings of
Slide 9: Net system sales breakdown in value
Net system sales breakdown in value Public Slide 9 21 January 2015 Region Technology (ship to location) End-Use Sales in Units Taiwan 20 KrF ArF dry 1% Q4’14 9% i-line 1% 20% Memory 10 total value IDM EUV 6% 65% 10% Korea 3 € 1,085 41% Japan 1 1 million 13% EUV ArF i ArFdry KrF I-Line Foundry ArF Im
Slide 10: Net Sales by quarter
Total net sales million € by quarter Public Slide 10 21 January 2015 7000 5,856 6000 5,651 5,245 Q1 5000 1,211 4,732 1,494 Q2 4,508 Q3 1,023 1,848 3,768 Q4 Net Sales 4000 1,521 1,459 1,322 955 2,954 3000 1,229 494 1,318 934 1,176 697 1,529 1,644 2000 1,596 1,228 930 1,187 844 581 1,069 1000 555 1,45
Slide 11: Net Sales by End-use
Total net sales million € by End-use Public Slide 11 21 January 2015 7000 5,856 6000 5,651 5,245 Memory 767 IDM 5000 4,732 1,614 4,508 Foundry 1,252 Service & Options 3,768 613 930 Net Sales 4000 1,856 417 1,186 2,954 944 3000 487 2,064 437 366 2,279 831 570 844 358 2000 1,596 698 440 421 2,585 2,29
Slide 12: Bookings activity by sector
Bookings activity by sector Public Slide 12 21 January 2015 Memory Net booked, including EUV NXE:3350B Q4’14 27% total value • 43 new tools at € 1,357 million € 1,387 IDM million Foundry 8% • 8 used tools at € 30 million 65% Memory Net booked, not including EUV Q3’14 76% total value • 37 new tools a
Slide 13: Backlog in value per Dec 31, 2014
Backlog in value per Dec 31, 2014 Public Region Slide 13 Technology End-use (ship to location) 21 January 2015 ArF dry 3% Rest of Asia 1% USA Foundry 23% Europe 3% KrF 37% China 5% IDM Q4’14 11% 20% Japan 5% i-line 1% Taiwan total value EUV 7% 29% € 2,772 Korea million ArF immersion Memory 34% 78% 4
Slide 14: Capital return to shareholders
Capital return to shareholders Public Slide 14 21 January 2015 • ASML proposes to again increase dividend by 15% to € 0.70 per ordinary share • ASML also intends to purchase its own shares within 2015 – 2016, including 3.3 million shares to cover employee stock and stock option plans as well as up t
Slide 15: Business environment
Public Slide 15 21 January 2015 Business environment
Slide 16: Business environment
Business environment Public Slide 16 • 21 January 2015 2015 bit growth is forecasted to be similar to 2014 at around 30% • 2x nm node ramps expected to meet bit demand • Some wafer capacity adds to compensate growing die size (mobile) • Litho tool adds to compensate process complexity • 2015 bit gro
Slide 17: Outlook
Public Slide 17 21 January 2015 Outlook
Slide 18: Outlook
Outlook Public Slide 18 21 January 2015 • Looking ahead to H1 2015, we expect both our sales to the memory segment and our service and field option business to continue to be strong and sales to the logic segment to increase from H2 2014 to H1 2015 • Q1 net sales around € 1.6 billion, no EUV expecte
Slide 19: Technology highlights
Public Slide 19 21 January 2015 Technology highlights
Slide 20: 2014 Product Highlights
2014 Product Highlights Public Slide 20 21 January 2015 EUV • A total of 7 EUV NXE:3300B systems were in the field by the end of 2014 • Achieved our target of 500 wafers per day productivity on NXE:3300B at multiple customer sites • Demonstrated stable source operation at 80 W running continuously f
Slide 21: EUV 2015: Focus on stability and availability
EUV 2015: Focus on stability and availability Public Target remains 1000 wafers per day (wpd) Slide 21 21 January 2015 Automation Targeting 70% Conversion efficiency Collector availability lifetime Drive laser power Collector lifetime: Droplet • Flows, heated vanes generator • In-situ cleaning Dose
Slide 22: EUV shipments and revenue recognition
EUV shipments and revenue recognition Public Slide 22 21 January 2015 EUV shipments & revenue 2015 Shipment plan 1 NXE:3300B Revenue 1 Shipment plan 3 NXE:3300B → 3350B* Revenue TBD** Shipment plan 6 NXE:3350B Revenue TBD** * NXE:3300B systems will be converted to NXE:3350B configuration ** Timing o
Slide 23: Financial statements
Public Slide 23 21 January 2015 Financial statements
Slide 24: Consolidated statements of operations by year M€
Consolidated statements of operations by year M€ Public Slide 24 21 January 2015 2013 2014 Net sales 5,245 5,856 Gross profit 2,177 2,596 Gross margin % 41.5% 44.3% Other income* 64 81 R&D costs (882) (1,074) SG&A costs (312) (321) Income from operations 1,048 1,282 Operating income % 20.0% 21.9% Ne
Slide 25: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 25 21 January 2015 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Net sales 1,848 1,397 1,644 1,322 1,494 Gross profit 806 610 752 578 657 Gross margin % 43.6% 43.6% 45.7% 43.7% 44.0% Other income* 17 20 20 20 20 R&D costs (253) (279) (267) (260) (268) SG&A costs
Slide 26: Cash flows M€
Cash flows M€ Public Slide 26 21 January 2015 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Net income 481 249 399 244 305 Net cash provided by (used in) operating activities 522 203 198 214 409 Net cash provided by (used in) investing activities (95) 5 (74) (24) 77 Net cash provided by (used in) financing activiti
Slide 27: Balance sheets M€
Balance sheets M€ Public Slide 27 21 January 2015 Assets Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Cash & cash equivalents and short-term investments 3,011 2,998 2,711 2,685 2,754 Net accounts receivable and finance receivables 1,175 1,177 1,429 1,336 1,304 Inventories, net 2,393 2,548 2,616 2,677 2,550 Other a
Slide 28: ASML
ASML