Slide 1: ASML 2014 Second Quarter Results
ASML Q2 sales as guided, gross margin tops guided range Full-year sales impacted by timing of logic capacity ramp ASML 2014 Second Quarter Results Veldhoven, the Netherlands July 16, 2014
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 16 July 2014 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 sales levels, syste
Slide 3: Agenda
Public Slide 3 16 July 2014 Agenda • Business summary • Business environment • Outlook • ASML technology status
Slide 4: Business summary
Public Slide 4 16 July 2014 Business summary
Slide 5: Q2 results – highlights
Q2 results – highlights Public Slide 5 16 July 2014 • Net sales of € 1,644 million, 31 litho systems sold, valued at € 1,243 million, net service and field option sales at € 401 million • Record average selling price of € 40 million per machine • Gross margin of 45.7% • Positively impacted by sector
Slide 6: Net system sales breakdown in value: Q2 2014
Net system sales breakdown in value: Q2 2014 Total value is € 1,243 million Public Slide 6 16 July 2014 End-Use Technology Memory KrF 2% 48% I line 1% IDM ArF dry 1% 26% EUV 5% Region (ship to location) China 4% Foundry Korea 26% ArF Immersion 24% 91% Taiwan 13% Sales in Units Japan 24 11% USA 47% E
Slide 7: Net Sales
Total net sales M€ Public Slide 7 16 July 2014 6000 5,651 5,245 5000 1,211 4,732 4,508 Q1 1,848 Q2 1,023 4000 3,768 Q3 1,521 1,459 YTD Q4 Net Sales 955 2,954 3,040 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 1,452 1,252 1,397 949 919 742 892 277 0
Slide 8: Net Sales by End-use
Total net sales M€ by End-use Public Slide 8 16 July 2014 6000 5,651 5,245 767 5000 4,732 4,508 Memory 1,252 IDM 613 930 Foundry 4000 3,768 1,856 YTD Service & Options 417 Net Sales 944 3,040 2,954 3000 487 2,064 437 366 2,279 767 570 844 358 2000 473 698 1,596 440 526 421 2,585 2,294 588 1000 315 2
Slide 9: Consolidated statements of operations M€
Consolidated statements of operations M€ Public Slide 9 16 July 2014 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Net sales 1,187 1,318 1,848 1,397 1,644** Gross profit 500 531 806 610 752 Gross margin % 42.1% 40.3% 43.6% 43.6% 45.7% Other income* 16 17 17 20 20 R&D costs (200) (244) (253) (279) (267) SG&A costs (
Slide 10: Cash flows M€
Cash flows M€ Public Slide 10 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 16 July 2014 Net income 245 193 481 249 399 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 49 68 68 65 67 Allowance for obsolete inventory 34 48 52 42 45 Other non-cash items 2
Slide 11: Balance sheets M€
Balance sheets M€ Public Slide 11 16 July 2014 Assets Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Cash & cash equivalents and short-term investments 2,351 2,724 3,011 2,998 2,711 Net accounts receivable and finance receivables 883 1,070 1,175 1,177 1,429 Inventories, net 2,372 2,492 2,393 2,548 2,616 Other assets
Slide 12: Bookings activity by sector
Bookings activity by sector Public Total value M€ 1,048 Slide 12 16 July 2014 Memory Net booked 55% • 22 new tools at € 990 million • ASP € 45.0 million Foundry 32% • 7 used tools at € 58 million Foundry IDM 2% 43% EUV not included Numbers have been rounded for readers’convenience
Slide 13: Backlog in value per June 29, 2014
Backlog in value per June 29, 2014 Public Total value M€ 1,763 Slide 13 16 July 2014 Technology Region USA (ship to location) 35% ArF dry 2% Rest of Asia 6% KrF 6% i-line 1% Taiwan Europe 6% 12% End-use ArF immersion Foundry 91% Korea 40% 41% IDM 24% New Used Total 66% of backlog carries shipment Me
Slide 14: Capital return to shareholders
Capital return to shareholders Public Slide 14 16 July 2014 • Of the € 1.0 billion 2013-2014 buy back program 61% has been executed, acquiring 9.5 million shares up until the end of Q2 • Repurchased shares will be cancelled • ASML returned more than € 5 billion in dividend and share buy backs since
Slide 15: Business environment
Public Slide 15 16 July 2014 Business environment
Slide 16: Business environment
Business environment Public Slide 16 16 July 2014 • The ramp of the 20/16/14 nm nodes is set to continue, however as we discussed last quarter some customers continue to evaluate the timing of their litho deliveries to synchronize supply and demand, leading to an adjustment of the ASML Q4 shipment f
Slide 17: Outlook
Public Slide 17 16 July 2014 Outlook
Slide 18: Outlook
Outlook Public Slide 18 16 July 2014 • Q3 net sales around € 1.4 billion, including 2 EUV systems • Gross margin around 42%, including EUV • R&D costs of about € 260 million • SG&A costs of about € 80 million • Other income (Customer Co-Investment Program) of about € 20 million • Full-year 2014 net
Slide 19: ASML technology status
Public Slide 19 16 July 2014 ASML technology status
Slide 20: EUV status and targets
EUV status and targets Public Slide 20 16 July 2014 Status: • We doubled wafer processing capability at the customer site over the last quarter to over 200 wafers/day, and we are confident that we can meet the 500 wafer per day target around the end of 2014 • One NXE:3300B is recognized in revenue t
Slide 21: Progress on all areas to improve system productivity
Progress on all areas to improve system productivity Public Slide 21 16 July 2014 Conversion Automation efficiency Collector protection System Availability Drive laser • Full automation Source Power power plasma control with • Higher conversion Droplet good dose control efficiency generator demonstr
Slide 22: EUV towards production insertion
EUV towards production insertion Public Slide 22 16 July 2014 Multiple customers are qualifying EUV for insertion at the 10 nm logic node NXE:3300B imaging and overlay performance is in line with requirements for 10nm node insertion Defect reduction ~10x per year shown and full-size EUV pellicle pro
Slide 23: Product highlights
Product highlights Public Slide 23 16 July 2014 • TWINSCAN productivity continues to set new records: • An NXT:1950i system with a productivity enhancement package has processed more than 5,250 wafers in a single day • Another NXT:1960Bi system imaged more than 1.5 million wafers in a one year perio
Slide 24: ASML
ASML