Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — FY2006 Earnings Presentation
39 slides from Asml Holding Nv's earnings presentation, Feb 6, 2007
Slide 1: ASML 2006 Annual and 4th Quarter Results
ASML 2006 Annual and 4 th Quarter Results Strong company on a growth trajectory January 17, 2007
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 ASML overview Financial summary Q1 2007 outlook ASML growth trajectory
Slide 4: ASML overview
ASML overview Key facts: Headquarters: Veldhoven, the Netherlands Revenue 2006 ~ €3.6 B Market cap ~ €9 B Employees 5600 Leaders in Innovation ASML TWINSCAN The world’s leading supplier of lithography equipment Customer satisfaction Customers Serving 80% of the top 20 IC manufacturers in the world
Slide 5: Financial summary
Financial summary
Slide 6: Total revenues M€ - record high
609 351 820 526 370 329 785 611 616 548 533 763 942 958 1068 Total revenues M€ - record high 1,959 1,543 2,465 2,529 3,597
Slide 7: Revenue breakdown Q4 2006
units Others TWINSCAN i-line KrF ArF Revenue breakdown: Q4 2006 Value per type Value per technology TWINSCAN 95% Other systems 5% Value per region Value per end-use Foundry 23% Memory 54% IDM 23% KrF 22% ArF 70% i-line 8% U.S. 23% Taiwan 26% Korea 28% China 5% Europe 7% ROW 4% Units Japan 7% Numbers
Slide 8: Profit & Loss statement M€
2005 2006 Net sales Gross profit 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 2,529 3,597 38.5 % 1,462 40.6 % 17.8% 24.2 % 12.3% 17.4 %
Slide 9: Key financial trends 2005 - 2006
Profit & Loss Statement M€ Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Units Sales Gross profit Gross margin % R&D SG&A Operating income Operat ing income % Net income Net income % ASP New Systems Bookings Units Key financial trends 2005 - 2006 Numbers have been rounded for readers’ convenience 1068 37.3 % 40.0 %
Slide 10: Cash flow M€
Q3 06 Q4 06 2006 Net income Depreciation and amortization Changes in tax assets and liabilities Effects of changes in inventories Effects of changes in other assets and liabilities Cash fl ow from operations Cash flow from investing activities Cash flow from financing activities Effect of changes in
Slide 11: Balance sheet as of Dec 31, 2006 M€
ASSETS Oct 2006 Dec 2006 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 Balance sheet as of
Slide 12: 2006: Record execution
2006: Record execution Growth 7 new customers in Japan, Taiwan and US Revenue up 42% to record € 3.6 billion Record net income of € 625 million Profitability Cost of goods reduction reflected in improved gross margin SG&A decreasing as a percentage of sales, currently at 6% Cash Inventory days impro
Slide 13: ASML repurchased 8.3% of outstanding shares
ASML repurchased 8.3% of outstanding shares ASML intends to buy back the remaining 1.7% (approx. 8 million shares) of the maximum of 10% of outstanding shares authorized by the AGM ASML reiterates its commitment to return cash above its net cash target of € 1B to shareholders through share buy backs
Slide 14: Q1 2007 outlook
Q1 2007 outlook ASML expects to ship 70 systems ASP for new + refurbished systems expected to be € 12.0 million Gross margin will range between 40 - 41% R&D is expected to increase to € 115 million net of credit to strengthen technology leadership and enabling lithography growth SG&A is expected at
Slide 15: ASML growth trajectory
ASML growth trajectory
Slide 16: ASML's short to mid term growth trajectory
ASML’s short to mid term growth trajectory supported by: Positive semiconductor market forecasts by industry analysts Strong position in immersion products Further market share gains Strong backlog and healthy bookings prospects
Slide 17: 2007 Semiconductor revenues projected to grow
2007 Semiconductor revenues projected to grow Average growth 8.5% 2007 Semiconductor revenue forecast
Slide 18: Litho growth outpacing other semiconductor fab equipment growth
Litho growth outpacing other semiconductor fab equipment growth Source : Average of VLSI Research, Gartner Dataquest
Slide 19: Immersion in 2007: immersion machines in backlog
Immersion in 2007 20 immersion machines in backlog H1 2007: XT:1700i systems shipping for 5x nm node flash to leading manufacturers H2 2007: XT:1900i systems for 4x nm node flash manufacturing and broad based R&D Shipments expected to over 10 customers TWINSCAN XT:1900i First shipment mid 2007
Slide 20: AMD & IBM
AMD & IBM Semiconductor International Online January 1, 2007 AMD and IBM announced that they had successfully completed their development work on the first-generation immersion lithography process Immersion is imminent for volume manufacturing Immersion production with XT:1700i already started at se
Slide 21: Market share through technology
0% 10% 20% 30% 40% 50% 60% 12” & ArF 6” & early i-line KrF & Step & Scan 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Reliable introduction Lead time reduction Cost effective Market share through technology 2006 ArFi 8” & i-line Source: ASML, SEMI (2006 data up to Nov. 2006)
Slide 22: ASML market share growth to continue in 2007
ASML market share growth to continue in 2007 Europe Worldwide litho shipments by region ASML worldwide market share at 61% through Nov. 2006 Source: ASML Asia non Japan Japan US
Slide 23: Backlog as of Dec 31, 2006
New Systems Used Systems Total Backlog Backlog Backlog Units Value ASP Backlog as of Dec 31, 2006 67% of unit backlog carry H1 2007 shipment dates Q4 net bookings of 84 systems with a value € 1,089 million including 74 new tools with an ASP of € 14.2 million Note: Due to possible customer changes in
Slide 24: Backlog: litho units and value
Backlog: litho units and value
Slide 25: Backlog lithography per Dec 31, 2006
Backlog lithography per Dec 31, 2006 Total value € 2,146 million Value per type Value per technology TWINSCAN 95% Other systems 5% I-line 11% ArF immersion 26 % Value per region Value per end-use Foundry 15% Memory 64% IDM 21% KrF 24% ArF dry 39 % Numbers have been rounded for readers’ convenience U
Slide 26: Trends by sector
Trends by sector Flash is starting volume manufacturing using immersion in early 2007 DRAM healthy growth in capacity expansion, no overheating observed Foundries invest anticipating growth in 2007, utilization in factories is bottoming IDM normal investment level supporting shrink including immersi
Slide 27: 2007 Outlook
2007 Outlook Industry Analysts forecast average 10% IC unit growth in 2007 and about € 5.5 billion ($ 6.8 Billion) litho investment in 2007 (source: Gartner Dataquest and VLSI Research) ASML’s record current backlog of € 2.1 billion suggests strong H1 2007, sustained by planned new Flash lines, stro
Slide 28: ASML's long term growth trajectory
ASML’s long term growth trajectory supported by: R&D investment Litho market natural growth Business scope expansion 2007 – A step towards € 5B revenues by 2010
Slide 29: Innovation: TWINSCAN leadership
“40nm and below” ArFi lens: 1.35 NA Improved Overlay 6 nm Highest Productivity Fastest Scanning Stages: 131 wph @ 125 exposures / wafer Innovation: TWINSCAN leadership XT:1900i provides the best resolution, productivity and overlay Proven single barrel catadioptric lens design
Slide 30: R&D spend per quarter supporting technology leadership
R&D spend (M€) per quarter is supporting continued technology leadership R&D 11% of revenue in 2006 Source: ASML
Slide 31: Ensuring continuous market share growth through technology leadership
Ensuring continuous market share growth through technology leadership Commodity products 500 TWINSCAN systems shipped High throughput i-line TWINSCAN with improved overlay performance - as per new node needs Immersion Significant customer experience accumulated on 36 installed systems Ramp XT:1900i
Slide 32: Lithography Equipment - a growing market with three major value drivers
Lithography Equipment - a growing market with three major value drivers Accelerating roadmap forcing more complexity… ASP increase not fully compensated by throughput …and more processing layers with Standard shrink technology yield challenges Alternative solutions (Spacer, 3D, Vertical gates) Doubl
Slide 33: Accelerating roadmap forcing more complexity
Lithography Equipment - a growing market with three major value drivers Accelerating roadmap forcing more complexity… ‘10 ‘12 Logic DRAM NAND ‘11 ‘07 ‘09 ‘08 ‘04 ‘06 ‘05 ‘01 ‘03 ‘02 2000 ASML Product Introduction XT:1400 XT:1700i AT:1200 AT:850 XT:1900i DPT EUV Year – Production start
Slide 34: …and more processing layers
Lithography Equipment - a growing market with three major value drivers …and more processing layers Fabsize Memory - Flash 70kwsm Memory - Dram 50kwsm Logic/Foundry 30kwsm … leading to growing lithography As shrink continues more litho layers and more immersion layers are needed…. expenditure
Slide 35: …leading to "Litho content" growth
…leading to “Litho content” growth Litho share of equipment approaching 20% level ! Source: SEMI WWSEMS including November 2006 data
Slide 36: ASML's vision - Value expansion with smart lithography
Lithography Inspection & lab metrology IC design Reticle enhancement techniques Design verification In-Situ metrology Litho Value added by up/down stream feedback ASML’s vision – Value expansion with smart lithography GROWTH GROWTH GROWTH
Slide 37: ASML to acquire Brion Technologies
ASML to acquire Brion Technologies Brion is a venture-backed startup based in Santa Clara, California, founded in 2002 More than 120 employees 8 out of top 10 chip makers are Brion customers Brion is the largest, fastest growing pure-play in computational lithography Products include Litho Verificat
Slide 38: ASML's growth trajectory
ASML’s growth trajectory Natural market growth, as lithography needs per node are increasing: More tools for more layers Higher ASP to address complexity Market share growth, as ASML strengthens technology leadership fueled by R&D accumulated experience and scale Scope broadening, as ASML acquires h
Slide 39: Commitment
Commitment