ASML Holding NV · EURONEXT:ASML
ASML Holding NV — Q1 2006 Earnings Presentation
20 slides from ASML Holding NV's earnings presentation, Apr 19, 2006
Slide 1: 2006 1st Quarter Results
2006 1st Quarter Results April 19, 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 z Accomplishments z Financial summary z Q2 outlook z Company focus 2006 / Slide 3
Slide 4: Accomplishments
Accomplishments / Slide 4 \ as ASML
Slide 5: Accomplishments Q1 2006
Accomplishments Q1 2006 z Solid execution z Gross margin increased to 40.0% z Operating margin grew to 18.2% z Improved our market position z Gained 7th customer in Japan – will use ASML immersion tools z Net bookings of 62 systems (47 new) with a value of € 710 million z Immersion z Backlog increas
Slide 6: Financial accomplishments Q1 2006
Financial accomplishments Q1 2006 Robust financial performance z Revenue of € 629 million, 15% increase over Q4 ‘05 z Shipped 51 systems (39 new systems) z ASP new systems is € 13.5 million z Net profit of € 80 million (12.7% of sales) z In preparation for major Q2 growth, ASML invested € 219 millio
Slide 7: Financial summary
Financial summary / Slide 7 \ as ASML
Slide 8: Revenues
Total revenues M€ 3000 2529 2465 2500 548 1959 785 2000 Q4 Revenues 1543 533 820 Q3 1500 611 526 Q2 763 1000 351 Q1 370 616 500 609 329 685 629 318 453 179 0 2002 2003 2004 2005 2006 / Slide 8
Slide 9: Revenue breakdown: Q1 2006
Revenue breakdown: Q1 2006 Value per type Value per technology Others i-line 14% 4% TWINSCAN 86% KrF ArF 46% 50% TWINSCAN Others ArF KrF i-line units Units 33 18 14 25 12 Value per region Value per end-use Taiwan Europe IDM Memory 19% 16% 35% 57% U.S. 27% Korea 32% Foundry China ROW 3% 3% 8% Numbers
Slide 10: Profit & Loss statement M€
Profit & Loss statement M€ 2005 Q1 05 Q4 05 Q1 06 Net sales 2529 685 548 629 Gross margin 974 274 204 251 Gross margin % 38.5% 40.0% 37.3% 40.0% R&D costs 324 79 82 87 SG&A costs 201 51 47 50 Operating income 449 144 75 114 Operating income % 17.8% 21.0% 13.6% 18.2% Net income 311 100 52 80 Net inco
Slide 11: Key financial trends 2005 - 2006
Key financial trends 2005 - 2006 Profit & Loss Statement M€ Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Units 59 51 39 47 51 Sales 685 763 533 548 629 Gross margin 274 299 197 204 251 Gross margin % 40.0% 39.1% 37.0% 37.3% 40.0% R&D 79 82 80 82 87 SG&A 51 55 48 47 50 Operating income 144 162 69 75 114 Operating i
Slide 12: Cash flow M€
Cash flow M€ 2005 Q1 05 Q4 05 Q1 06 Net income 311 100 52 80 Depreciation and amortization 99 22 30 22 Changes in tax assets and liabilities 98 38 1 (54)1 Effects of changes in inventories (30) (9) (126) (165) Effects of changes in other assets and 233 (47) 253 (102) liabilities Cash flow from recur
Slide 13: Backlog as of April 2, 2006
Backlog as of April 2, 2006 New Systems Used Systems Total Backlog Backlog Backlog Units 94 12 106 Value M€ 1.560 M€ 36 M€ 1.596 ASP M€ 16.6 M€ 3.0 M€ 15.1 • 85 % of unit backlog carry Q2 + Q3 2006 shipment dates • Q1 net bookings of 62 systems with a value M€ 710 including 47 new tools with an ASP
Slide 14: Balance sheet as of April 2, 2006 M€
Balance sheet as of April 2, 2006 M€ ASSETS December 2005 March 2006 Cash and cash equivalents 1905 51 % 1671 44 % Accounts receivable, net 303 8% 447 12 % Inventories, net 777 21 % 940 25 % Other assets 164 4% 153 4% Tax assets 303 8% 297 7% Fixed assets 304 8% 301 8% TOTAL ASSETS 3756 100% 3809 10
Slide 15: Backlog: litho units and value
Backlog: litho units and value 200 2500 Used systems 180 New systems 160 Backlog value 2000 Backlog value M€ 140 Backlog units 120 1500 100 80 1000 60 40 500 20 0 0 Jun 03 Sep 03 Jun 04 Dec 03 Sep 04 Jun 05 Dec 04 Sep 05 Dec 05 Mar 03 Mar 04 Mar 05 Mar 06 / Slide 15
Slide 16: Backlog lithography per April 2, 2006
Backlog lithography per April 2, 2006 Total value M€ 1,596 Value per type Value per technology I-line TWINSCAN KrF ArF immersion 3% 95% 25% 29 % Others 5% ArF dry 43 % Value per region Value per end-use China Japan ROW 8% 5% 2% IDM Memory U.S. 29% 49% 31% Korea 24% Europe Taiwan Foundry 9% 21% 22% N
Slide 17: Q2 outlook
Q2 outlook z Shipment of 64 systems expected z ASP for new system shipments expected to be € 14.5 million for new systems and € 12.3 million for new + refurbished systems z Gross margin expected at 39 – 40% z R&D and SG&A are expected to be € 87 million net of credit and € 51 million respectively z
Slide 18: Share Buyback Program
Share Buyback Program z ASML confirms its intention to execute a share buyback program in 2006 z Company will repurchase up to the equivalent of € 400 million of its own shares over the next 12 months z Purpose of the program is to return excess cash to shareholders through reduction of the number o
Slide 19: Company focus 2006
Company focus 2006 z Continue execution of 2005 focus points z Execute on volume production ramp of the TWINSCAN XT:1700i, hyper NA tool for 45 nm node z Execute on cost of goods reduction z Execute on lead time reduction z Accelerate the technology leadership gap z Ship 2 EUV Alpha demo tools z Fin
Slide 20: Commitment
& ASML Ge 4 Commitment