JP Morgan 34th Annual Technology Conference
San Francisco – May 23, 2006
Eric Meurice, CEO
Exhibit 99.7
Safe Harbor
“Safe Harbor” Statement under the U.S. Private Securities
Litigation Reform Act of 1995: the matters discussed in this
presentation may include forward-looking statements that 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), competitive products
and pricing, manufacturing efficiencies, new product
development, ability to enforce patents, the outcome of
intellectual property litigation, availability of raw materials and
critical manufacturing equipment, trade environment, and
other risks indicated in the risk factors included in ASML’s
Annual Report on Form 20-F and other filings with the U.S.
Securities and Exchange Commission.
/ Slide 2
Mid-Term Market Update
Semiconductor Units history and forecast
2006 Semiconductor consensus growth forecast at +11%
25% -21% 14% 9% 18% 4% 11%
Source: ASML MCC
/ Slide 4
IC unit sales and inventory
Steady demand - inventory under control
Source: WSTS, VLSI Research, ASML
Last data point: March 2006
/ Slide 5
Litho Bookings and Billings as % of Semiconductor Revenue
Relative spending on Litho increasing
Source: SEMI, WSTS, ASML
Last data point: March 2006
/ Slide 6
Growth from Multiple independent Segments
Each Segment with its own investment cycle
Flash shrink - 12 to 15
month investment cycle
DRAM – closely follows
Flash investment cycle
Foundries represent classic
supply/demand cycle
Moore’s law, 18 to 24
months - invest for new
product development -
volume to Foundry
Shrink for new
functionality and cost per
function - 12 to 24 month
investment cycle
/ Slide 7
Market Status Summary
Market players remain cautious:
Inventory/Utilization under evaluation
Industry shows sign of maturing as swings are smaller in
amplitude and length
Wide range of customers are hitting capacity limits
Ordering production capacity tools including used
Utilization rates at approx. 92 %
/ Slide 8
Market Status Summary (Cont.)
26 new fab projects under construction:
9 Flash fabs
6 other Memory fabs
11 Foundry or IDM fabs
Immersion enabling 55 nm/45 nm next generation
node for early 2007 production ramp:
Flash next generation
High integration/complexity Logic designs
LEADING TO A STRONG BOOKINGS OUTLOOK IN Q2 2006
FOR DELIVERIES IN Q3 06, Q4 06, Q1 07
/ Slide 9
Long-Term Trajectory
Company focus
Execution on Technology – Cost – Leadtime
Execute on Leadership:
Volume production ramp of the TWINSCAN XT:1700i, hyper NA
tool for 45 nm node: 20 - 25 tools to ship in 2006
2 EUV alpha tools mid 2006
R&D investment increased to sustain 1 node/year
Execute on cost of goods reduction:
Internal target of 15% cost of ownership reduction
Redesigns for cost - for performance/availability/throughput
Execute on lead time reduction
Leadtime reduction of 30%
Capacity increase: 50% +
/ Slide 11
ASML Secular Growth model
Source: Average of Dataquest, VLSI Research and ASML fab based model
Average WW litho sales
ASML’s potential
Status quo
Natural growth
potential towards
4-5 B€ range
ASML’s
opportunity
window
/ Slide 12
ASML is well positioned for value generation
Growth
Target of 70% market share
Potential to double top line in 5 years (reference 2005)
Profitability
Track record of last 8 quarters - average 17.1% EBIT
margin
Liquidity
Average M €79 cash generation from operations in last
8 quarters
/ Slide 13
Commitment