Annual General Meeting of Shareholders. 24 March 2010

Transcription

1 Annual General Meeting of Shareholders 24 March 2010

2 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 selling price, gross margin and expenses. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of credit market deterioration on consumer confidence and demand for our customers products, competitive products and pricing, manufacturing efficiencies, new product development and customer acceptance of new products, ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates and other risks indicated in the risk factors included in ASML s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Slide 2

3 Agenda ASML in 2009 Financials and Market Roadmap Slide 3

4 ASML in 2009 Slide 4

5 2009 GDP GLOBAL ECONOMY DECLINES Credit Crunch Dow Jones drops below 9,000 first time in 5 years AEX down 53% Worldwide Semiconductor Revenue declined more than 10% in 2009 Customer Qimonda files for bankruptcy ASML H1 System Sales down 82% Slide 5

6 Total net sales M ,582 3,768 Net sales ,543 2,465 2,529 2,954 1, Numbers have been rounded for readers convenience. Slide 6

7 Net system sales breakdown in value: 2009 Technology Sales in Units ArF immersion 74% KrF 12% Region i-line 2% ArF dry 12% ArF immersion End-use ArF dry KrF I-Line Korea 25% Taiwan 30% USA 22% Singapore 11% Europe 3% ROW 9% Memory 53% Foundry 27% IDM 20% Numbers have been rounded for readers convenience Slide 7

8 Consolidated statement of operations M Net sales 2,954 1,596 Gross profit Gross margin % Income (loss) from operations Operating income % 1, % % R&D costs SG&A costs % (165) % Net income (loss) Net income as a % of sales % (151) - 9.5% Numbers have been rounded for readers convenience. Slide 8

9 Key financial trends Consolidated statement of operations M Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Net Sales Gross profit Gross margin % Income (loss) from operations Operating income % Net income (loss) Net income as a % of sales % % % % % R&D SG&A (135) -27.4% (88) -17.8% (147) -80.0% (117) -63.8% (125) -45.0% (104) -37.6% % % % % Units sold ASP New Systems Net Bookings Units Numbers have been rounded for readers convenience. Slide 9

10 Cash position remains solid Q4 cash & cash equivalents at billion remain above our target of 1 billion even as we invest in working capital to prepare for sales growth Net cash from operations in Q4 is 19 million Revenue Q Q Q Q Q Q Q Q Cash & cash equivalents Revenue Cash Slide 10

11 Accomplishments 2009 Cash above EUR 1 billion Break-even lowered to EUR 450 mln with higher capacity Share price doubled in 12 months Slide 11

12 Market Position Reinforced in new customers 67% Market 7,000 Share 6,000 5,000 4,000 3,000 2,000 WW M$ ASML market share 70% 60% 50% 40% 30% 20% World Wide Market [M USD] ASML Revenue Market Share [%] 1,000 10% 0 0% VLSI recognized increase in polled customer satisfaction Sources: VLSI, Gartner ( ), SEMI ( ) Market research agencies forecasts ( ) Slide 12

13 Slide 13 Market

14 Recovery is taking shape IC revenue and unit sales history 22 YoY Seasonal adjusted IC revenue growth YoY Seasonal adjusted IC unit growth Revenue IC seasonally adjusted Units IC seasonally adjusted Revenue 3mma Units 3mma 60% Jan-04 Jan-05 IC Sales [B USD/Units] Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 50% 40% 30% 20% 10% 0% -10% -20% -30% YoY Growth [%] -40% Source: WSTS, ASML Last data point: January 2009 Slide 14

15 2010 semiconductor revenue outlook is increasing Driven by high PC, cellphone forecast and stable memory prices 25% 20% 15% 10% 5% 0% Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 YoY Semiconductor revenue growth [%] Future Horizons SIA Semico Dataquest IC Insights WSTS isuppli VLSI Research AVERAGE Date of Forecast Sources: See chart (03/2010) Weighted average is based on age of forecast from market institute and respective level of accuracy for the last 3 years Slide 15

16 Days of inventory remain below mma IC unit sales, inventory and inventory days - Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 3mma IC unit sales / Inventory [Bio. Units] Jul-09 Jan-10 Source: VLSI Research, WSTS, ASML Last data point: January 2009 Slide IC inventory [days] monthly IC inventory based on 3mma IC ASPs 3mma IC unit sale 3mma IC unit sales corrected for inventory Inventory days (right axis)

17 Q DRAM operating margins improved rapidly Operating Margin [% of Sales] 60% 40% 20% 0% - 20% - 40% - 60% - 80% Operating Margins of main DRAM Manufacturers (Q3/06 Q4/09) Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 4Q08 1Q09 2Q09 3Q09 4Q09 Most advanced prod. node Q4/09: 4x nm 5x nm 5x nm 5x nm 6x nm 6x nm - 100% - 120% - 140% Source: DRAMeXchange (2/10), ASML Marketing Slide 17

18 Backlog: value and litho units Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Backlog value Systems Slide Backlog value M Backlog units

19 Trend per sector DRAM High factory utilization and healthy chip prices result in continued capacity conversions to grow bit supply using 4x and 5x node NAND Continued 3x nm production ramp and preparation for pilot production of 2x nm later this year Foundry / IDM Increased demand for high end chips requires expansion of 4x nm volume manufacturing capacity requiring both leading and non-leading edge tools Slide 19

20 Slide 20 Roadmap

21 Enabling Moore s Law towards 10 nm resolution Lithography supports shrink roadmap 200 Logic Logic / SRAM Resolution/half pitch, "Shrink" [nm] AT:1200 DRAM XT:1400 NAND Flash XT:1700i XT:1900i k ~ 0.35 k ~ 0.30 DRAM NAND NXT:1950i NXE:3100 NXE: Transistor SRAM Cell k ~ 0.44 ARF ARFi EUV *Average customer input, update Jan 10 Slide 21 Year of production start*

22 ASML Immersion Extendable Product Roadmap Available Available Available Q Q XT:1900Gi XT:1950Hi NXT:1950i NXT:1950i+PEP NXT:1950i+EXT Resolution / nm CDU / nm <1.5 <1.5 <1.1 <1.1 <0.8 Overlay / nm Throughput / W/hr Defects / W 3 < Installed 5 systems Booked 6 systems in Q4 Backlog end-q4 2009: 17 systems Customers to ramp NXT in volume manufacturing in Q ³ASML Patterned defect test Slide 22

23 TWINSCAN EUV Product Roadmap Source roadmap in place for immersion compatible productivity 2006 Demonstration tool 2010 NXT: NXE:3300B 2013 NXE:3300C Resolution 32 nm 27 nm 22 nm 16* nm NA / σ 0.25 / / / / OAI Overlay (SMO) < 7 nm < 4.5 nm < 3.5 nm < 3 nm Throughput 4 W/hr 60 W/hr 125 W/hr 150 W/hr Source 5 mj/cm 2, ~8 W 10 mj/cm 2, >100 W 15 mj/cm 2, >350 W 15 mj/cm 2, >550 W Main improvements 1) New EUV platform: NXE 2) Improved low flare optics 3) New high sigma illuminator 4) New high power source 5) Dual stages Main improvements 1) New high NA 6 mirror lens 2) New high efficiency illuminator 3) Off-axis illumination optional 4) Source power increase 5) Reduced footprint Platform enhancements 1) Off-Axis illumination 2) Source power increase * Requires <7 nm resist diffusion length Slide 23

24 Holistic Litho provides a window to shrink Process Window Process Control Pre-production: enlarges the process window further and earlier through pattern optimization and scanner tuning Production: ensures that the process stays in the sweet spot of the process window maximized for the specific application at hand, increasing yield and tool availability Slide 24

25 Securing the future Slide 25

26 ] Lithography SystemRevenue [Mio. Market trajectory towards 5 B in ASML sales Global market for systems, service revenue not included WW Litho Demand Simulation: Base case, 2010 to 2012 market figures simulated assuming IC volumes returning to historical 9% YoY growth average Lithography System Revenue [Mio. ] History 3rd-party forecastbased simulation iline KrF ArF ArFi EUV * EUV R&D tools included Source: ASML MCC (03/2010) Slide 26

27 Commitment to innovation requires a strong player 600 R&D investments ASML R&D investment in M Source: ASML worldwide investments Slide 27

28 ASML: #2 in European R&D per employee Company (market cap > 2.5 bln) R&D per employee ( ) Shire (pharma) 98,100 ASML (semiconductors) 78,000 Porsche (automotive) 74,900 UCB (pharma) 67,900 Lundbeck (pharma) 57,600 AstraZeneca (pharma) 54,800 Autonomy (software) 51,600 Sanofi-Aventis (pharma) 46,900 Nokia (telecoms equipment) 43,700 Alcatel-Lucent (telecoms equipment) 40,800 Source: European Commission: 2009 EU Industrial R&D Investment Scoreboard TW/betapublishers 2009 Slide 28

29 Sustainability at ASML: 4 focus areas for Environment: ASML sites cut CO2 emissions by 50 percent between 2010 and 2015 improve non-hazardous waste recycling to 90 percent conserve water 2. Environment: products ASML commits to more energy efficient machines by continuing our long-term productivity trend and implement energy-efficient technologies over time 3. Safety & Social ASML targets even stricter safety of products and production sites, with a target to improve 25 percent every year; we will reinforce ethical business principles and our status as preferred employer 4. Suppliers Improve Sustainability performance of our suppliers ASML is managed for the long term ASML will create value for all our stakeholders - including employees, customers, investors, suppliers and our communities - in a socially, commercially and environmentally responsible manner Slide 29

30 Contributions to energy efficiency Reduce energy usage through shrink Energy consumption of transistors on chips produced by one production line for 1 year (34 kilotonne of CO2) 2. Energy consumption of one production line for 1 year (3.8 kilotonne of CO2) 3. Energy consumption of ASML scanner for 1 year (0.14 kilotonne of CO2) 4. Energy needed to make a scanner = 0.1 kilotonne of CO2 (depreciated over 5 years) Source: ASML Note: size of the circles not to scale Slide 30

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