EX-99 2 asml992.txt EXHIBIT 99.1 Exhibit 99.1 Slide 1 ------- A S M L Q2 2004 Results: A Stronger, Longer Upturn July 14, 2004 Slide 2 ------- Safe Harbor "Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: the matters discussed during this presentation include forward-looking statements that are subject to risks and uncertainties including, but not limited to, economic conditions, product and pricing, manufacturing efficiencies, new products development, ability to enforce patents, availability of raw materials and critical manufacturing equipment, trade environment, and other risks indicated in filings with the U.S. Securities and Exchange Commission. Slide 3 -------- Agenda o A stronger, longer upturn o ASML accomplishments Q2 2004 o Financial summary o Summary Slide 4 ------- A stronger, longer upturn Slide 5 ------- Worldwide litho tool forecast 2004-2005 2004 2005 New systems 554 + 676 = 1230 total Source: Dataquest Semiconductor revenue growth y-o-y 25 - 32% 14 - 28% Source: Various industry research companies Additional assumptions: 300 mm 50% 60% Capacity addition 75% 100% Technology upgrade 25% 0% Source: ASML Slide 6 ------- 1230 tools will not create over-capacity Capacity, Demand and Utilization Semiconductor Installed unit sales/ capacity in demand semiconductors Utilization ----------------------------------------------------------- 1Q99 65 80 84.5% 2Q99 72 83 89.1% 3Q99 79 85 90.9% 4Q99 84 88 93.9% ----------------------------------------------------------- 1Q00 85 91 94.6% 2Q00 95 94 95.0% 3Q00 99 97 96.4% 4Q00 95 101 92.8% ----------------------------------------------------------- 1Q01 82 101 83.9% 2Q01 75 104 73.2% 3Q01 70 106 64.2% 4Q01 68 102 65.9% ----------------------------------------------------------- 1Q02 74 100 77.3% 2Q02 88 102 87.0% 3Q02 89 103 86.3% 4Q02 85 103 81.5% ----------------------------------------------------------- 1Q03 84 102 82.8% 2Q03 89 103 85.9% 3Q03 93 105 88.3% 4Q03 100 109 91.9% ----------------------------------------------------------- 1Q04 102 109 93.4% 2Q04 111.7 112 100.0% 3Q04 121.0 116 100.0% 4Q04 122.6 120 100.0% ----------------------------------------------------------- 1Q05 121.6 126 96.9% 2Q05 129.0 131 98.3% 3Q05 135.0 137 98.4% 4Q05 135.0 144 94.0% ----------------------------------------------------------- Slide 7 ------- Bookings lag behind: the best is yet to come Wafer equipment bookings as % of Semiconductor sales WFE billings as % of Seasonally adjusted 3MM of 3MMA Growth in Semiconductor Sales Semiconductor Sales -------------------- ------------------- Jan-95 13.8% 37.8% Feb-95 16.8% 40.0% Mar-95 16.5% 43.3% Apr-95 16.6% 45.4% May-95 15.0% 46.3% Jun-95 15.0% 46.7% Jul-95 15.4% 46.0% Aug-95 15.3% 44.8% Sep-95 15.7% 40.8% Oct-95 15.6% 38.4% Nov-95 16.1% 37.3% Dec-95 16.4% 37.1% Jan-96 16.8% 33.3% Feb-96 16.9% 25.9% Mar-96 16.0% 15.8% Apr-96 15.7% 5.9% May-96 14.7% -2.7% Jun-96 13.6% -12.0% Jul-96 11.5% -15.7% Aug-96 10.7% -18.6% Sep-96 10.4% -17.5% Oct-96 10.7% -16.5% Nov-96 11.5% -15.9% Dec-96 12.3% -16.6% Jan-97 12.9% -16.6% Feb-97 14.3% -15.2% Mar-97 14.5% -9.4% Apr-97 14.7% -5.1% May-97 14.2% 2.0% Jun-97 14.7% 8.0% Jul-97 15.7% 13.7% Aug-97 15.6% 15.6% Sep-97 16.4% 15.0% Oct-97 16.8% 12.0% Nov-97 17.3% 9.2% Dec-97 15.7% 4.5% Jan-98 13.4% 2.8% Feb-98 10.3% 1.0% Mar-98 8.4% -4.7% Apr-98 7.3% -6.2% May-98 6.4% -11.9% Jun-98 4.8% -13.8% Jul-98 4.9% -16.9% Aug-98 5.9% -15.6% Sep-98 8.0% -13.5% Oct-98 9.2% -9.4% Nov-98 9.9% -5.9% Dec-98 10.0% -1.5% Jan-99 10.0% 1.3% Feb-99 9.7% 3.6% Mar-99 9.4% 6.9% Apr-99 9.4% 7.3% May-99 9.8% 12.0% Jun-99 10.7% 13.9% Jul-99 11.4% 19.1% Aug-99 12.1% 21.3% Sep-99 12.9% 23.8% Oct-99 13.2% 23.2% Nov-99 11.0% 24.9% Dec-99 12.1% 30.0% Jan-00 13.7% 33.5% Feb-00 13.7% 34.1% Mar-00 14.8% 34.8% Apr-00 15.4% 36.3% May-00 15.8% 40.7% Jun-00 17.1% 49.0% Jul-00 17.4% 50.0% Aug-00 17.7% 51.8% Sep-00 16.2% 45.5% Oct-00 16.2% 39.3% Nov-00 15.4% 28.4% Dec-00 14.7% 21.6% Jan-01 12.4% 12.1% Feb-01 10.4% 5.7% Mar-01 7.3% -4.4% Apr-01 5.3% -10.1% May-01 5.5% -20.1% Jun-01 5.5% -31.1% Jul-01 5.8% -37.4% Aug-01 5.5% -42.2% Sep-01 5.0% -44.7% Oct-01 5.0% -44.0% Nov-01 4.1% -42.0% Dec-01 4.6% -43.1% Jan-02 4.5% -39.8% Feb-02 5.1% -35.2% Mar-02 5.7% -25.5% Apr-02 6.8% -19.4% May-02 7.5% -10.5% Jun-02 7.8% -1.6% Jul-02 7.5% 7.9% Aug-02 6.7% 14.2% Sep-02 5.7% 20.6% Oct-02 5.4% 19.9% Nov-02 5.4% 21.0% Dec-02 5.5% 23.1% Jan-03 5.2% 22.6% Feb-03 5.3% 18.8% Mar-03 5.1% 14.6% Apr-03 5.0% 12.0% May-03 5.2% 11.2% Jun-03 5.5% 11.8% Jul-03 5.7% 11.8% Aug-03 5.9% 13.7% Sep-03 6.7% 17.5% Oct-03 7.6% 23.3% Nov-03 8.4% 25.6% Dec-03 9.0% 28.0% Jan-04 9.2% 26.6% Feb-04 8.8% 30.8% Mar-04 9.1% 32.3% Apr-04 9.7% 36.9% May-04 10.1% 36.9% Slide 8 ------- ASML accomplishments Q2 2004 Slide 9 ------- Accomplishments Q2 2004 o Successfully introduced the AT:1250 with 5 systems shipped to customers. o Increased gross margin from 32.2% to 35.6% o Improved backlog ASP for new tools is Euro 11.7 million o Generated Euro 84 million net cash while increasing manufacturing output o Gained new major customer in Japan Slide 10 -------- ASML rated in top 3 in customer satisfaction -------------------------------------------------------------------------- Top 10 Large Suppliers of Wafer Processing Equipment 2004 -------------------------------------------------------------------------- Rank Company -------------------------------------------------------------------------- 1 Varian Semiconductor -------------------------------------------------------------------------- 2 Tokyo Electron Limited -------------------------------------------------------------------------- 3 ASML -------------------------------------------------------------------------- 4 Canon -------------------------------------------------------------------------- 5 Hitachi Kokusai Electric Inc. -------------------------------------------------------------------------- 6 Novellus Systems, Inc. -------------------------------------------------------------------------- 7 ASM International -------------------------------------------------------------------------- 8 Ulvac, Inc. -------------------------------------------------------------------------- 9 Dainippon Screen Mfg. Co., Ltd. -------------------------------------------------------------------------- 10 Nikon Corporation -------------------------------------------------------------------------- Source: VLSI Research Inc., Suppliers of 2004: Customer Satisfaction Slide 11 -------- Financial Summary Slide 12 -------- Total revenues Million Euros 2000 2001 2002 2003 2004 ------------------------------------------------------------------ Semi-annual 1180 830 - - - ------------------------------------------------------------------ Second Half 1493 759 - - - ------------------------------------------------------------------ Q1 - - 179 318 453 ------------------------------------------------------------------ Q2 - - 609 329 616 ------------------------------------------------------------------ Q3 - - 351 370 - ------------------------------------------------------------------ Q4 - - 820 526 - ------------------------------------------------------------------ Total 2673 1589 1959 1543 1070 ------------------------------------------------------------------ Slide 13 -------- New and used system revenues by region, type and technology: H1 2004 Region -------- Asia 71% Europe 12% U.S. 17% Type ------ Scanners 300 mm 56% Scanners 200 mm 41% Steppers 3% Technology -------------- 248 nm 57% 193 nm 29% 365 nm 14% Slide 14 -------- New system ASP trending upwards [GRAPHIC OMITTED] Graphic depicts New System ASP bar graph. Slide 15 --------
Overview historical financials consolidated Million Euros ---------------------------------------- -------------------- -------------------- --------------------- ------------------ ASML Q1 04 Q2 04 H1 03 H1 04 ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Net sales 453 100.0% 616 100.0% 647 100.0% 1,070 100.0% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Gross profit 146 32.2% 220 35.6% 125 19.3% 366 34.2% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- R&D costs 70 15.4% 69 11.2% 149 23.0% 139 13.0% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- SG&A costs 42(1) 9.2% 50 8.1% 140(2) 21.7% 92(3) 8.6% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Operating income from continuing operations 34 7.6% 101 16.3% (164) (25.3)% 135 12.6% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Net income from continued ops. 21 4.5% 65 10.6% (123) (19.0)% 86 8.0% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Net income from discont. ops. - % - -% (23) (3.5)% - -% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Total net income 21 4.5% 65 10.6% (146) (22.5)% 86 8.0% ---------------------------------------- -------- ----------- -------- ----------- --------- ----------- --------- -------- Prior year financial statements have been restated to reflect the impact of discontinued operations (1) SG&A costs include a positive adjustment of Euro 6 Million for restructuring expenses (2) SG&A costs include restructuring expenses Euro 24 Million (3) SG&A costs include a positive adjustment of Euro 6 Million for restructuring expenses
Slide 16 -------- Sales per model --------------------------------------- ---------------- ----------------- H1 03 H1 04 --------------------------------------- ---------------- ----------------- New scanners --------------------------------------- ---------------- ----------------- 200 mm --------------------------------------- ---------------- ----------------- i-line 4 20 --------------------------------------- ---------------- ----------------- Krf (248 nm) 30 33 --------------------------------------- ---------------- ----------------- Arf (193 nm) 3 1 --------------------------------------- ---------------- ----------------- Total 200 mm scanners 37 54 --------------------------------------- ---------------- ----------------- 300 mm --------------------------------------- ---------------- ----------------- i-line 2 4 --------------------------------------- ---------------- ----------------- Krf (248 nm) 12 25 --------------------------------------- ---------------- ----------------- Arf (193 nm) 3 15 --------------------------------------- ---------------- ----------------- Total 300 mm scanners 17 44 --------------------------------------- ---------------- ----------------- Total scanners 54 98 --------------------------------------- ---------------- ----------------- --------------------------------------- ---------------- ----------------- New steppers --------------------------------------- ---------------- ----------------- i-line 1 1 --------------------------------------- ---------------- ----------------- Total steppers 1 1 --------------------------------------- ---------------- ----------------- --------------------------------------- ---------------- ----------------- Used systems 19 31 --------------------------------------- ---------------- ----------------- TOTAL 74 130 --------------------------------------- ---------------- ----------------- Slide 17 -------- Cash flow Million Euros
----------------------------------------------------- -------------- -------------- -------------- ------------- Q1 04 Q2 04 H1 03 H1 04 ----------------------------------------------------- -------------- -------------- -------------- ------------- Net income 21 65 (123) 86 ----------------------------------------------------- -------------- -------------- -------------- ------------- Depreciation and amortization 26 25 66 50 ----------------------------------------------------- -------------- -------------- -------------- ------------- Effects of changes in assets and liabilities 62 4 327 66 ----------------------------------------------------- -------------- -------------- -------------- ------------- Cash flow from operations 109 94 270 202 ----------------------------------------------------- -------------- -------------- -------------- ------------- Cash flow from investing activities 2 (17) (17) (15) ----------------------------------------------------- -------------- -------------- -------------- ------------- Cash flow from financing activities 7 7 370 15 ----------------------------------------------------- -------------- -------------- -------------- ------------- Cash flow from discontinued operations 0 0 (10) 0 ----------------------------------------------------- -------------- -------------- -------------- ------------- Effect of changes in exchange rates on cash 6 0 (32) 6 ----------------------------------------------------- -------------- -------------- -------------- ------------- Net cash flow 124 84 581 208 ---------------------------------------------------- -------------- -------------- -------------- -------------
Slide 18 -------- Balance sheet as of June 27, 2004 Million Euros
-------------------------------------------------- ------------------------------ ----------------------------- ASSETS Mar 2004 Jun 2004 -------------------------------------------------- --------------- -------------- --------------- ------------- Cash and cash equivalents 1,152 38.2% 1,236 39.6% -------------------------------------------------- --------------- -------------- --------------- ------------- Accounts receivable, net 317 10.5% 397 12.7% -------------------------------------------------- --------------- -------------- --------------- ------------- Inventories, net 599 19.9% 591 18.9% -------------------------------------------------- --------------- -------------- --------------- ------------- Other assets 225 7.5% 216 6.9% -------------------------------------------------- --------------- -------------- --------------- ------------- Tax assets 380 12.6% 350 11.2% -------------------------------------------------- --------------- -------------- --------------- ------------- Fixed assets 341 11.3% 334 10.7% -------------------------------------------------- --------------- -------------- --------------- ------------- TOTAL ASSETS 3,014 100.0% 3,124 100.0% -------------------------------------------------- --------------- -------------- --------------- ------------- -------------------------------------------------- --------------- -------------- --------------- ------------- LIABILITIES and SHAREHOLDERS' EQUITY -------------------------------------------------- --------------- -------------- --------------- ------------- Current liabilities (excl. tax liability) 765 25.4% 823 26.3% -------------------------------------------------- --------------- -------------- --------------- ------------- Tax liability 180 6.0% 180 5.8% -------------------------------------------------- --------------- -------------- --------------- ------------- Long term debts 890 29.5% 881 28.2% -------------------------------------------------- --------------- -------------- --------------- ------------- Shareholders' equity 1,179 39.1% 1,240 39.7% -------------------------------------------------- --------------- -------------- --------------- ------------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 3,014 100.0% 3,124 100.0% -------------------------------------------------- --------------- -------------- --------------- ------------- -------------------------------------------------- --------------- -------------- --------------- -------------
Slide 19 -------- Backlog: litho units vs. value
Jan-02 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Backlog units 111 117 160 93 103 87 62 91 124 163 174 Backlog value 1141 1215 1570 930 1030 870 678 859 993 1357 1800 (Million Euro)
Slide 20 -------- Backlog lithography per June 27, 2004 Total Value 1800 Million Euro Value per type ----------------- Scanners 300 mm 82% Scanners 200 mm 14% Steppers 4% Value per technology ------------------------- 248 nm 51% 193 nm 39% i-line 10% Value per region -------------------- Taiwan 27% U.S. 23% Korea 20% Singapore 14% China 7% Europe 9% Value per end-use --------------------- Foundry 43% Memory 36% IDM 21% Slide 21 -------- Backlog as of June 27, 2004 ------------------------------------------------------------------ New Systems Used Systems Total Backlog Backlog Backlog ------------------------------------------------------------------ Units 147 27 174 ------------------------------------------------------------------ Value M Euro 1,723 77 1,800 ------------------------------------------------------------------ ASP M Euro 11.7 2.9 10.3 ------------------------------------------------------------------ Total backlog ASP of tools to be shipped in the next 6 months: 9.1 Million Euro Slide 22 -------- Gross margin improvement programs pay off ------------------------------------------------------------------------------- Total Net Sales (Million Euro) Gross margin (%) ------------------------------------------------------------------------------- 3Q 2002 352 26.6 ------------------------------------------------------------------------------- 4Q 2002 820 17.2 ------------------------------------------------------------------------------- 1Q 2003 318 16.6 ------------------------------------------------------------------------------- 2Q 2003 329 22.0 ------------------------------------------------------------------------------- 3Q 2003 370 25.2 ------------------------------------------------------------------------------- 4Q 2003 525 28.5 ------------------------------------------------------------------------------- 1Q 2004 453 32.2 ------------------------------------------------------------------------------- 2Q 2004 616 35.6 ------------------------------------------------------------------------------- 3Q 2004 - 37.6 (1) ------------------------------------------------------------------------------- 4Q 2004 - 40.0 (1) ------------------------------------------------------------------------------- (1) ASML estimate Slide 23 -------- Q3 business focus o Ship world's first immersion tool for volume manufacturing TWINSCAN AT:1250i o Improve gross margin by 2% in Q3, reaching 40% in Q4 o Maintain R&D at Euro 65-70 million per quarter o Maintain SG&A at Euro 50-55 million per quarter o Generate cash in a growing market Slide 24 -------- Summary Slide 25 -------- ASML is well positioned for strong market o Great market momentum due to superior product offering o Manufacturing ramp-up is strengthening in Q4 2004 o Cycle time reduction helps capacity o Manufacturing plans are in place to support increasing market share in 2005 Slide 26 -------- A S M L Commitment