ASML Holding NV · EURONEXT:ASML
ASML Holding NV — Barclays Capital Global Technology Conference 2008
18 slides from ASML Holding NV's conference presentation, Dec 10, 2008
Slide 1: Barclays Capital Global Technology Conference
Barclays Capital Global Technology Conference San Francisco, CA Craig DeYoung VP Investor Relations and Corporate Communications December 10th, 2008 / Slide 1
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 pric
Slide 3: ASML - the world's largest supplier of lithography equipment
ASML - the world’s largest supplier of lithography equipment Revenue evolution Leadership in immersion for 3,597 3,768 volume chip 2,465 2,529 manufacturing 1,543 2003 2004 2005 2006 2007 Nikon ASML 24% 65% Lam Research ASML Market share 2007 Canon 11% KLA Tencor Applied Materials Tokyo Top 5 semico
Slide 4: Agenda
Agenda z Market z ASML’s Robustness / Slide 4
Slide 5: Market
L vs ASM > 5 / Slide
Slide 6: Macro and sector trends
Macro and sector trends z Challenging customer environment z Product overcapacity z Low DRAM and FLASH memory prices z Access to capital z M&A negotiations z Demand for capacity expansion remains extremely weak z Significant weakening in the last 2 to 3 months z Virtually no 300mm lithography capaci
Slide 7: DRAM manufacturers with most aggressive shrink post highest operating margins
DRAM manufacturers with most aggressive shrink post highest operating margins Operating margins vs. technology nodes of main DRAM manufacturers 60% Most 40% advanced node in 20% Q2/08: Operating Margin 0% 5x nm 5x nm -20% 6x nm -40% 6x nm 6x nm -60% 7x nm -80% 7x nm 7x nm -100% -120% 05 05 05 05 06
Slide 8: Robustness
Robustness / Slide 8
Slide 9: Sound gross margin performance
Sound gross margin performance Revenue Gross margin 1200 45% [Thousands] 1000 40% 35% 800 Q4 guidance 30% 600 Revenue Gross margin 25% 400 20% 200 15% 0 10% 03 03 04 04 05 05 06 06 07 07 08 08 1 3 1 3 1 3 1 3 1 3 1 3 Q Q Q Q Q Q Q Q Q Q Q / Slide 9 Q
Slide 10: Gross margin dynamics
Gross margin dynamics z Cost of goods reduction program z Litho tool sales mix z Euro / Yen / Dollar exchange rate z ASML factory loading z Product maturity z Sales discount Due to cost improvements and management of the above, gross margin is expected to be approximately 36% at revenue levels of €
Slide 11: Near term operating expense dynamics
Near term operating expense dynamics z R&D z “Spend on strategic programs and save on efficiency” z High level of strategic investment to meet customer requirements for shrink z Efficiency produces € 6 million savings in Q4 z SG&A z Improved efficiency provided 19% cost reduction from Q2 to Q4 / Sli
Slide 12: Robust operating margin performance with R&D expenditures increased >50% in the last 3 years
Robust operating margin performance with R&D expenditures increased >50% in the last 3 years Revenue Operating margin 1200 30% [Thousands] 20% Operating margin 1000 370 800 329 10% Revenue 600 0% 400 -10% 200 -20% 0 -30% 03 03 04 04 05 05 06 06 07 07 08 08 1 3 1 3 1 3 1 3 1 3 1 3 Q Q Q Q Q Q Q Q Q Q
Slide 13: Profitability stress test: operating profit
Profitability Stress test Operating Profit R&D + SG&A € 170 million per quarter Net Sales 3,250 4,000 2,750 3,000 3,500 3,750 2,500 2,250 1,750 2,000 30% -155 - 80 -5 70 145 220 295 370 445 520 32% -120 - 40 40 120 200 280 360 440 520 600 2008 estimate 34% - 85 0 85 170 255 340 425 510 595 680 Gross
Slide 14: Solid financial position
Solid financial position z Conservatively financed z Cash & cash equivalents € 1.3 billion z Debt € 600 million 5.75% Notes due 2017 z Standby facility € 500 million due 2012 z Cash generative / Slide 14
Slide 15: Tough times call for product roadmap strengthening
Tough times call for product roadmap strengthening z Driving higher product value through performance enhancement and cost reductions z Strengthening leadership in immersion, the TWINSCAN XT:1950 with highest NA available today allows 38 nm resolution and offers 25% overall performance improvement z
Slide 16: Immersion on track
Immersion on track z Shipped 46 immersion systems YTD z Booked 16 immersion systems in Q3 z Backlog contains 27 immersion systems with value of Euro 750 – ASP of Euro 27.8 million / Slide 16
Slide 17: Backlog lithography in value per Sep 28th, 2008
Backlog lithography in value per Sep 28th, 2008 Total value M€ 1,028 i-Line 2% Technology KrF 6% ArF dry 19% Region ArF Other 6% End-use immersion 73% Korea 14% Japan IDM USA 25% Memory 43% 30% 42% Taiwan 14% Foundry Europe 11% 15% Numbers have been rounded for readers’ convenience / Slide 17
Slide 18: Slide 18
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