Slide 1: 2005 Annual and 4th Quarter Results
2005 Annual and 4 th Q uarter Results January 18, 2006
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 Financial summary Q1 outlook Company focus 2006
Slide 4: Accomplishments
Accomplishments
Slide 5: Accomplishments 2005
Accomplishments 2005 Net sales increased 3% y-o-y while Net profit improved by 32% to € 311 million Shipping 30% fewer but higher priced systems (196 units) Operating profit increased 2.4% to 17.8% Net cash from operations nearly tripled to € 711 million Improved our market position Added our 6 th c
Slide 6: Financial accomplishments Q4 2005
Financial accomplishments Q4 2005 Solid execution Revenue of € 548 million Shipped 47 systems (34 new systems) Net profit of € 52 million (9.4% of sales) Gross margin 37% Operating profit 14% Cash generation of € 205 million
Slide 7: Financial summary
Financial summary
Slide 8: Total revenues M€
616 759 609 1493 329 763 2465 1589 1959 2673 1180 1543 2529 Total revenues M€ 1000 1500 2000 2500 3000 2000 2001 2002 2003 2004 2005 Q1 Q2 Q3 Q4 H1 H2
Slide 9: Revenue breakdown: Q4 2005
units Others TWINSCAN i-line KrF ArF Revenue breakdown: Q4 2005 Value per type Value per technology TWINSCAN 85% Others 15% Value per region Value per end-use Foundry 37% Memory 43% IDM 15% KrF 45% ArF 48% i-line 7% U.S. 8% Taiwan 26% Korea 40% China 5% Europe 9% ROW 4% Numbers have been rounded for
Slide 10: Profit & Loss statement M€
Q3 0 5 Q4 05 20 04 20 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€ Numbers have been rounded for readers’ convenience 1 ASML, Nikon Corporation and Carl Zeiss SMT AG agreed to a comprehensive sett
Slide 11: Key financial trends 2005
Profit & Loss Statement M€ Q1 0 5 Q2 0 5 Q3 0 5 Q4 0 5 200 5 Units Sales Gross margin Gross margin % R&D SG&A O pe rating income Operating income % Net income Net income % Key financial trends 2005 Numbers have been rounded for readers’ convenience 2529 40.0 % 39.1 % 37.0 % 37.3 % 38.5 % 21.0 % 21.2
Slide 12: Cash flow M€
Q 3 05 Q4 05 20 04 20 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 ha
Slide 13: Balance sheet as of December 31, 2005 M€
ASSETS December 200 4 December 2005 Cash and cash equivalents Accounts receivable, net Inventories, net Other assets Tax assets Fixed assets LIABILITIES and SHAREHOLDERS’ EQUITY Current liabilities Convertible subordinated bonds Long term debts and deferred liabilities Shareholders’ equity Current l
Slide 14: Backlog: litho units vs. value
Backlog: litho units vs. value New and used systems
Slide 15: Backlog as of December 31, 2005
New Systems Used Systems Total Backlog Backlog Backlog Units Value ASP Backlog as of December 31, 2005 80 % of unit backlog carry Q1 + Q2 2006 shipment dates Q4 net bookings of 55 systems of which 43 are new with an ASP of M€ 14.5 Note: Due to possible customer changes in delivery schedules and to c
Slide 16: Backlog lithography per December 31, 2005
Backlog lithography per December 31, 2005 Total value M€ 1,434 Value per type Value per technology TWINSCAN 96% Others 4% I-line 2% ArF dry 46 % Value per region Value per end-use U.S. 27% Foundry 18% Memory 48% Taiwan 24% IDM 34% Korea 28% KrF 28% ROW 9% Europe 12% ArF immersion 24 % Numbers have b
Slide 17: Q1 outlook
Q1 outlook Bookings are expected to be at least at the same level as Q4 2005 (55 bookings) ASML expects to ship 48 systems in Q1 2006 with upside potential for a few additional systems ASP for new systems is € 14.1 million, new + used is € 12.0 million Gross margin of 38 - 39% R&D expenditures in Q1
Slide 18: Company focus 2006
Company focus 2006 Continue execution of 2005 focus points Execute on volume production ramp of the TWINSCAN XT:1700i, hyper NA tool for 45 nm node, in Q2 2006 Execute on cost of goods reduction Execute on lead time reduction Accelerate the technology leadership gap Prepare 2 EUV tools for shipment
Slide 19: Commitment
Commitment