Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Q1 2008 Earnings Presentation
29 slides from Asml Holding Nv's earnings presentation, Apr 16, 2008
Slide 1: ASML 2008 First Quarter Results
ASML 2008 First Quarter Results ASML continues to execute its leadership strategy and expects gradual order pick-up April 16, 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 pri
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 Lam 24% 65% Research ASML Market share 2007 Canon 11% KLA Tencor Applied Materials Tokyo Electron Top
Slide 4: Agenda
Agenda z Market z Business summary z Outlook / Slide 4
Slide 5: Market
Market / Slide 5
Slide 6: Market in general
Market in general z Global economic weakness drives slowdown of overall 2008 semiconductor capex forecast by analysts and customers z DRAM makers reduce capacity plan and are driving prices of memory chips up z Two Flash makers delay new factories, flash prices continue to be weak z Customer factory
Slide 7: Unit Growth
Industry analyst 2008 memory forecasts DRAM Unit Growth NAND Unit Growth 35 60 30 50 Unit Growth 25 40 20 30 15 20 10 5 10 0 0 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 Gartner Time of Forecast IC Insights VLSIR / Slide 7 Source: ASML MCC
Slide 8: ASML affected by changing market environment
ASML affected by changing market environment - Recent capacity delay decisions by one DRAM factory expansion and two new Flash factories - Rationalization efforts amongst Taiwanese DRAM players ongoing - Overall economic growth uncertainty delaying capex decisions for Foundries + Demand for immersio
Slide 9: ASML's assessment of 2008 worldwide lithography demand
ASML’s assessment of 2008 worldwide lithography demand 2007 2008 2008 shipments forecast corresponding IC segment (main) worldwide litho semiconductor units unit growth NAND 140 127 / 104 33% / 23% DRAM 235 142 / 121 7% / 2% LOGIC + MPU 126 121 / 89 7% / 2% Other 111 105 / 112 12% / 12% TOTAL 612 49
Slide 10: ASML technology leader
ASML technology leader / Slide 10
Slide 11: ASML immersion installed base 86 tools
ASML immersion installed base 86 tools Immersion technology used in volume production for 55 nm resolution and beyond 25 in the US 8 in Europe 53 in ASIA, (16 in Japan) Source: ASML / Slide 11
Slide 12: Immersion: Fastest technology transition to date
Immersion: Fastest technology transition to date # wafers exposed on ASML immersion systems (millions) 3000 9 >2750 2500 8 Wafers per day 2000 1500 XT:1900i 7 1000 1st shipment 6 500 0 5 Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Peak Source: IEEE 2007, Toshiba 4 Volume production 3 2 XT:1700i XT:140
Slide 13: Next generation lithography: EUV
Next generation lithography: EUV Albany Leuven Prototypes shipped Pilot production machine in 2006 to ship in early 2010 / Slide 13
Slide 14: The world's first chips using full-field EUV
The world’s first chips using full-field EUV SRAM cell and full working transistor showed in February 2008 RHEM XP4502J 0 Sample NMOS transistor RHEM XP4502J curve from EUV wafer 0 0 log(Id) 0 0 0 0 0 0 0 1 1 1 1 Vg 33 mm 22 mm 15 GB 3D Reference Alpha Demo Tool thick mask Full size AMD EUV print 19
Slide 15: Business summary
Business summary / Slide 15
Slide 16: Q1 results
Q1 results z 8th consecutive quarter with sales over € 900 million z Solid operating margin of 20.5% z Cash generation € 263 million from operations z Backlog at €1,167 million, 65 systems z Booked 26 systems z Shipped 14 immersion tools z Record average selling price for new shipped systems of € 18
Slide 17: Net sales
Total net sales M€ 4500 4000 3,768 3,597 3500 955 3000 1068 2,529 Q4 Net sales 2,465 2500 Q3 548 934 2000 785 958 Q2 1,543 533 1500 Q1 611 930 526 763 942 1000 370 616 500 329 949 919 685 629 318 453 0 2003 2004 2005 2006 2007* 2008 *2007 numbers are adjusted retrospectively with respect to the chan
Slide 18: Net sales breakdown in value: Q1 2008
Net sales breakdown in value: Q1 2008 Technology Sales in Units ArF immersion i-Line 3% 14 14 13 51% 9 KrF 14% ArF dry ArF ArF dry KrF i-Line immersion 32% End-use Region Foundry 13% Korea 32% Memory IDM 64% Taiwan China 23% 15% 14% Europe USA Japan 7% 7% 24% Other 1% Numbers have been rounded for r
Slide 19: Consolidated statement of operations M€
Consolidated statement of operations M€ Q4 07* Q1 08 Net sales 955 919 Gross profit 390 374 Gross margin % 40.8% 40.6% R&D costs 129 128 SG&A costs 57 57 Operating income 203 188 Operating income % 21.3% 20.5% Net income 201 145 Net income % 21.0% 15.8% * 2007 numbers are adjusted retrospectively wi
Slide 20: Key financial trends 2007 – 2008
Key financial trends 2007 – 2008 Consolidated statement of operations M€ Q1 07* Q2 07* Q3 07* Q4 07* Q1 08 Net Sales 949 930 934 955 919 Gross profit 392 383 385 390 374 Gross margin % 41.3% 41.2% 41.2% 40.8% 40.6% R&D 116 120 120 129 128 Amortization in process R&D 23 SG&A 56 56 56 57 57 Operating
Slide 21: Cash flow M€
Cash flow M€ Q4 07* Q1 08 Net income 201 145 Depreciation and amortization 30 31 Changes in tax assets and liabilities (1) 22 Effects of changes in other assets and liabilities (158) 65 Cash flow from operations 72 263 Cash flow from investing activities (51) (54) Cash flow from financing activities
Slide 22: Balance sheet as of March 30th, 2008 M€
Balance sheet as of March 30th, 2008 M€ Assets Dec 2007* Mar 2008 Cash and cash equivalents 1,272 31% 1,397 32% Accounts receivable, net 638 16% 741 17% Inventories, net 1,102 27% 1,152 26% Other assets 295 7% 353 8% Tax assets 214 6% 207 5% Fixed assets 547 13% 554 12% Total assets 4,068 100% 4,404
Slide 23: Backlog as of March 30th, 2008
Backlog as of March 30th, 2008 New systems Used systems Total systems Backlog Backlog Backlog Units 53 12 65 Value M€ 1,091 M€ 76 M€ 1,167 ASP M€ 20.6 M€ 6.4 M€ 18.0 • 77% of backlog or € 896 million system sales carry Q2 + Q3 shipment dates • Q1 net bookings of 26 systems with a value of € 312 mill
Slide 24: Backlog: value and litho units
Backlog value M€ 0 500 1000 1500 2000 2500 Jan 03 39541 / Slide 24 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04 Oct 04 Jan 05 Apr 05 Jul 05 Backlog value Oct 05 Jan 06 Apr 06 Jul 06 Systems Oct 06 Jan 07 Apr 07 Jul 07 Backlog: value and litho units Oct 07 Jan 08 Apr 08 0 50 100 150 200 250 300 Backlog units
Slide 25: Backlog lithography in value per March 30th, 2008
Backlog lithography in value per March 30th, 2008 Total value M€ 1,167 Technology ArF dry KrF 9% 31% i-Line 3% ArF Region End-use immersion 57% Other 6% Korea 30% Japan 9% IDM 30% USA 20% China 9% Memory 56% Foundry 14% Taiwan 13% Europe 13% Numbers have been rounded for readers’ convenience / Slide
Slide 26: Outlook
Outlook / Slide 26
Slide 27: Q2 2008 outlook
Q2 2008 outlook z ASML expects to ship 42 systems z ASP for new + refurbished systems expected to be € 17.0 million z Gross margin approximately 40% z R&D is expected at € 130 million net of credit z SG&A is expected at € 58 million z Given current market weakness, we are trimming Manufacturing and
Slide 28: Outlook
Outlook z Order pattern translates into weaker net sales for next 2 quarters bringing our current full year sales estimate to about 10% less than our record sales number in 2007 z We expect gradual unit order pick-up from Q2 onwards, due to: z Improvements in memory supply/demand balance z Volume pr
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