Slide 1: Annual General Meeting of Shareholders 2020
Annual General Meeting of Shareholders 2020 Veldhoven, the Netherlands, April 22, 2020 Public
Slide 2: Forward looking statements
Forward looking statements Public Slide 2 April 15, 2020 This document contains statements that are forward-looking, including statements with respect to expected trends, bookings, annual revenue opportunity in 2020 and through 2025 and long term growth opportunity, expected trends in end markets, e
Slide 3: Agenda
Agenda Slide 3 April 22, 2020 van de Jaarlijkse Algemene Vergadering van Aandeelhouders van ASML Holding N.V. (de “Vennootschap”), te houden op woensdag 22 april 2020, om 14.00 uur in de Plaza, ASML Gebouw 7, De Run 6665, Veldhoven Of the Annual General Meeting of Shareholders of ASML Holding N.V. (
Slide 4: Financials
Slide 4 April 22, 2020 Financials Public
Slide 5: 2019 - Highlights
2019 - Highlights Slide 5 April 22, 2020 • Despite an overall industry decline, ASML delivered a sales growth of 8%, reflecting our customers' desire to invest in future technology: ◦ Net sales grew to a record €11.8 billion at 44.7% gross margin ◦ Net income at €2.6 billion resulted in an EPS of €6
Slide 6: Q1 results and business view
Q1 results and business view Slide 6 • Net sales of €2,441 million, net systems sales of €1,584 million, Installed Base April 22, 2020 Management sales of €857 million • Gross margin of 45.1% • Net bookings of €3,085 million, including €1,540 million of EUV systems • To date, the COVID-19 outbreak h
Slide 7: Total net sales million € by End-use
Total net sales million € by End-use Slide 7 April 22, 2020 Installed Base Management Logic Memory As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The comparative numbers presented above have not been adjusted to reflect these chan
Slide 8: Net system sales breakdown in value (Yearly)
Net system sales breakdown in value (Yearly) Slide 8 April 22, 2020 2019 total value €8,996 million 2018 total value €8,259 million Public
Slide 9: Consolidated statements of operations € million
Consolidated statements of operations € million Slide 9 Year on Year April 22, 2020 20151 2016 2017 2018 2019 Net sales 6,287 6,875 8,963 10,944 11,820 Gross profit 2,896 3,145 4,020 5,029 5,280 Gross margin % 46.1 45.7 44.9 46.0 44.7 Other income 2 83 94 96 — — R&D costs (1,068) (1,106) (1,260) (1,
Slide 10: Consolidated statements of cash flows € million
Consolidated statements of cash flows € million Slide 10 Year on Year April 22, 2020 20151 2016 2017 2018 2019 Cash and cash equivalents, beginning of period 2,420 2,459 2,907 2,259 3,121 Net cash provided by (used in) operating activities 2,026 1,666 1,818 3,073 3,276 Net cash provided by (used in)
Slide 11: Consolidated Balance sheets € million
Consolidated Balance sheets € million Slide 11 Year on Year April 22, 2020 Assets 20151 2016 2017 2018 2019 Cash & cash equivalents and short-term investments 3,409 4,057 3,288 4,034 4,718 Net accounts receivable and finance receivables 1,208 1,145 1,958 2,384 2,773 Contract assets — 149 270 96 231
Slide 12: Capital return to shareholders
Capital return to shareholders Slide 12 April 22, 2020 • Paid total dividends of €1.3 billion, including FY2018 final dividend and FY2019 interim dividend, and purchased €410 million worth of shares in 2019 • Intention to declare a total dividend for 2019 of €2.40 per ordinary share, consisting of:
Slide 13: Our people and the world around us
Slide 13 April 22, 2020 Our people and the world around us Public
Slide 14: Growth in numbers of employees worldwide
Growth in numbers of employees worldwide Slide 14 April 22, 2020 US Europe Asia 2018: 5,155 2018: 12,702 2018: 5,390 2019: 5,436 2019: 13,732 2019: 5,731 Total Worldwide 2018: 23,247 2019: 24,900 FTE Growth 7% 107 nationalities FTE = Full Time Equivalent, end 2019 Public
Slide 15: COVID-19: What we are dealing with?
COVID-19: What we are dealing with? Slide 15 April 22, 2020 Not a single event Global reach All stakeholders Uncertainty We are COVID-19 has Internally, many No clear idea experiencing an impacted everyone people and country of how and when we ongoing series of around the world. teams are involved w
Slide 16: Where are we?
Where are we? Asia begins to recover, and demand increases as rest of Slide 16 April 22, 2020 world sees increasing restrictions US: One country, 50 states Pandemic begins, predominantly impacting A variety of different measures Europe and US being taken across all COVID-19 cases rise in 50 states i
Slide 17: COVID-19 crisis measures
Our approach in summary Slide 17 April 22, 2020 COVID-19 crisis measures Ensure the safety of our employees and their families as best as we can Business-critical projects Process improvements Our Our Our financial Take Prepare for technology: customers: position advantage a safe return of any to wo
Slide 18: High-NA: Continuation of shrink roadmap
High-NA: Continuation of shrink roadmap In the same way that 0.33NA enables 7nm and 5nm Logic, 0.55NA EUV Slide 18 April 22, 2020 will be needed to enable 3nm Logic Process simplification and improved device performance >50% cost reduction compare to multi-patterning schemes 3 to 6x cycle time reduc
Slide 19: Investing for our long-term growth opportunities
Investing for our long-term growth opportunities Public Slide 19 Infrastructure, including High-NA @ Zeiss SMT January 22, 2020 Veldhoven: High-NA manufacturing facilities* Veldhoven: Logistic center and offices* Wilton: Manufacturing facilities* Zeiss SMT: High-NA optics metrology vessels * Artist’
Slide 20: Supporting our communities…
Supporting our communities… Slide 20 April 22, 2020 130,000 medical-grade 400 tablets to elderly 420,000 face masks cleanroom gloves to and nursing homes for 1,000 medical coats the regional Dutch video calling with to the regional authorities. families. authorities for distribution. We also donated
Slide 21: Supporting our communities…
Supporting our communities… Slide 21 April 22, 2020 ASML is offering its Our technology promotion Logistics support to other expertise through KIVI team turned one of their companies, shipping (Royal Netherlands Society guest lessons on making medical protection of Engineers), supporting smartphone
Slide 22: Public
Public
Slide 23: Agenda
Agenda Slide 23 April 22, 2020 3a. Adviserende stem met betrekking tot het Remuneratierapport voor de Directie en de Raad van Commissarissen over het boekjaar 2019 (Stempunt) Advisory vote on the remuneration report for the Board of Management and the Supervisory Board for the financial year 2019 (V
Slide 24: Remuneration Report 2019 (1/2)
Remuneration Report 2019 (1/2) Slide 24 The Remuneration Report 2019 for the BoM and SB is in accordance with the revised EU April 22, 2020 Shareholder Rights Directive (as implemented into Dutch law per December 1, 2019) Pursuant to this new legislation, the General Meeting has an advisory vote on
Slide 25: Remuneration Report 2019 (2/2)
Remuneration Report 2019 (2/2) Slide 25 2. Short-Term Incentive (STI) payout over 2019 has been 89.2% of max (133.8% of April 22, 2020 target (80%), i.e. 107% of base salary) • Non-financial performance criteria (Technology Leadership Index and Market Position): both achieved between target and maxi
Slide 26: Agenda
Agenda Slide 26 April 22, 2020 3b. Voorstel tot vaststelling van de overeenkomstig de Nederlandse wet opgestelde jaarrekening van de Vennootschap over het boekjaar 2019 (Stempunt) Proposal to adopt the financial statements of the Company for the financial year 2019, as prepared in accordance with Du
Slide 27: Agenda
Agenda Slide 27 April 22, 2020 3c. Toelichting op het reserverings- en dividendbeleid van de Vennootschap (Discussiepunt) Clarification of the Company’s reserves and dividend policy (Discussion item) Public
Slide 28: Agenda
Agenda Slide 28 April 22, 2020 3d. Voorstel tot vaststelling van een dividend over het boekjaar 2019 (Stempunt) Proposal to adopt a dividend in respect of the financial year 2019 (Voting item) Public
Slide 29: Agenda
Agenda Slide 29 April 22, 2020 4a. Voorstel tot verlening van decharge aan de leden van de Directie voor de uitoefening van hun functie in het boekjaar 2019 (Stempunt) Proposal to discharge the members of the Board of Management from liability for their responsibilities in the financial year 2019 (V
Slide 30: Agenda
Agenda Slide 30 April 22, 2020 4b. Voorstel tot verlening van decharge aan de leden van de Raad van Commissarissen voor de uitoefening van hun functie in het boekjaar 2019 (Stempunt) Proposal to discharge the members of the Supervisory Board from liability for their responsibilities in the financial
Slide 31: Agenda
Agenda Slide 31 April 22, 2020 5. Voorstel tot goedkeuring van het aantal aandelen toe te kennen aan de Directie (Stempunt) Proposal to approve the number of shares for the Board of Management (Voting item) Public
Slide 32: Agenda
Agenda Slide 32 April 22, 2020 6. Voorstel tot vaststelling van een aantal wijzigingen in het Beloningsbeleid van de Directie (Stempunt) Proposal to adopt certain adjustments to the Remuneration Policy for the Board of Management (Voting item) Public
Slide 33: Adjustments Remuneration Policy BoM (1/2)
Adjustments Remuneration Policy BoM (1/2) Slide 33 Current Remuneration Policy for the Board of Management was adopted by the Annual April 22, 2020 General Meeting of Shareholders of April 24, 2019 and became effective per January 1, 2019 Changes effective Jan 1, 2020: • Mainly textual changes to co
Slide 34: Adjustments Remuneration Policy BoM (2/2)
Adjustments Remuneration Policy BoM (2/2) Slide 34 Changes effective Jan 1, 2020 (continued): April 22, 2020 • Deletion STI modifier BoM connected to the profit sharing program for employees in the Netherlands: since STI performance measures, target setting and payout scheme for BoM are in principle
Slide 35: Agenda
Agenda Slide 35 April 22, 2020 7. Voorstel tot vaststelling van het Beloningsbeleid van de Raad van Commissarissen (Stempunt) Proposal to adopt the Remuneration Policy for the Supervisory Board (Voting item) Public
Slide 36: Remuneration Policy SB
Remuneration Policy SB Slide 36 Current SB remuneration was determined at 2019 AGM April 22, 2020 There is no official policy in place other than the level of remuneration The now proposed Remuneration Policy for SB incorporates requirements of SRD II and Dutch law, including an explanation of the o
Slide 37: Agenda
Agenda Slide 37 April 22, 2020 8. Samenstelling van de Raad van Commissarissen (3 stempunten; 4 discussiepunten) Composition of the Supervisory Board (3 voting items; 4 discussion items) Public
Slide 38: Agenda
Agenda Slide 38 April 22, 2020 8a. Kennisgeving van de vacatures binnen de Raad van Commissarissen (Discussiepunt) Notification of Supervisory Board vacancies (Discussion item) Public
Slide 39: Agenda
Agenda Slide 39 April 22, 2020 8b. Mogelijkheid tot het doen van aanbevelingen door de Algemene Vergadering (Discussiepunt) Opportunity to make recommendations by the general meeting (Discussion item) Public
Slide 40: Agenda
Agenda Slide 40 April 22, 2020 8c. Kennisgeving van de aanbeveling van de Raad van Commissarissen tot herbenoeming van mevrouw A.P. Aris, en benoeming van de heer D.W.A. East en de heer D.M. Durcan als lid van de Raad van Commissarissen (Discussiepunt) Announcement of the Supervisory Board’s recomme
Slide 41: Agenda
Agenda Slide 41 April 22, 2020 8d. Voorstel tot herbenoeming van mevrouw A.P. Aris als lid van de Raad van Commissarissen (Stempunt) Proposal to reappoint Ms. A.P. Aris as member of the Supervisory Board (Voting item) 8e. Voorstel tot benoeming van de heer D.M. Durcan als lid van de Raad van Commiss
Slide 42: Agenda
Agenda Slide 42 April 22, 2020 8g. Samenstelling van de Raad van Commissarissen in 2021 (Discussiepunt) Composition of the Supervisory Board in 2021 (Discussion item) Public
Slide 43: Agenda
Agenda Slide 43 April 22, 2020 9. Voorstel tot benoeming van KPMG Accountants N.V. als externe accountant voor het rapportagejaar 2021 (Stempunt) Proposal to appoint KPMG Accountants N.V. as external auditor for the reporting year 2021 (Voting item) Public
Slide 44: Agenda
Agenda Slide 44 April 22, 2020 10. Voorstellen om de Directie aan te wijzen als het orgaan dat bevoegd is tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen, alsmede tot het beperken of uitsluiten van het aan de aandeelhouders toekomende voorkeursrec
Slide 45: Agenda
Agenda Slide 45 April 22, 2020 10a. Aanwijzing tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen tot 5% voor algemene doeleinden (Stempunt) Authorization to issue ordinary shares or grant rights to subscribe for ordinary shares up to 5% for general
Slide 46: Agenda
Agenda Slide 46 April 22, 2020 10b. Aanwijzing tot het beperken of uitsluiten van voorkeursrechten met betrekking tot agendapunt 10a) (Stempunt) Authorization of the Board of Management to restrict or exclude pre-emption rights in connection with agenda item 10 a) (Voting item) Public
Slide 47: Agenda
Agenda Slide 47 April 22, 2020 10c. Aanwijzing tot uitgifte van aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen tot 5% in verband met of ter gelegenheid van fusies, acquisities en/of (strategische) allianties (Stempunt) Authorization to issue ordinary shares or grant rig
Slide 48: Agenda
Agenda Slide 48 April 22, 2020 10d. Aanwijzing tot het beperken of uitsluiten van voorkeursrechten met betrekking tot agendapunt 10c) (Stempunt) Authorization of the Board of Management to restrict or exclude pre-emption rights in connection with agenda item 10 c) (Voting item) Public
Slide 49: Agenda
Agenda Slide 49 April 22, 2020 11. Voorstellen om de Directie te machtigen om gewone aandelen te verwerven tot 20% van het geplaatst aandelenkapitaal (2 Stempunten) Proposals to authorize the Board of Management to repurchase ordinary shares up to 20% of the issued share capital (2 voting items) Pub
Slide 50: Agenda
Agenda Slide 50 April 22, 2020 11a. Machtiging om gewone aandelen in te kopen tot een maximum van 10% van het geplaatste kapitaal (Stempunt) Authorization to repurchase ordinary shares up to 10% of the issued share capital (Voting item) Public
Slide 51: Agenda
Agenda Slide 51 April 22, 2020 11b. Machtiging om additioneel gewone aandelen in te kopen tot een maximum van 10% van het geplaatste kapitaal (Stempunt) Authorization to repurchase additional ordinary shares up to 10% of the issued share capital (Voting item) Public
Slide 52: Agenda
Agenda Slide 52 April 22, 2020 12. Voorstel tot intrekking van gewone aandelen (Stempunt) Proposal to cancel ordinary shares (Voting item) Public
Slide 53: Agenda
Agenda Slide 53 April 22, 2020 13. Rondvraag Any other Business 14. Sluiting Closing Public
Slide 54: Public
Public