Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Shareholder Meeting (April 2024)
62 slides from Asml Holding Nv's shareholder meeting presentation, Apr 24, 2024
Slide 1: Annual General Meeting of ASML Holding N.V.
Annual General Meeting of ASML Holding N.V. Veldhoven, the Netherlands April 24, 2024 Public
Slide 2: Forward looking statements
Forward looking statements This document and related presentation and discussion and other discussions at our annual general meeting 2024 contain statements that are forward-looking within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements with respect to
Slide 3: Opening of the Annual General Meeting
Opening of the Annual General Meeting of ASML Holding N.V. (Non-voting item) April 24, 2024 Page 3 Public
Slide 4: Overview of the Company's business, financial situation and ESG sustainability
Overview of the Company’s business, financial situation and ESG sustainability (Non-voting item) April 24, 2024 Page 4 Public
Slide 5: Financials
Financials Roger Dassen, Executive Vice President and CFO April 24, 2024 Page 5 Public
Slide 6: 2023 - Highlights
2023 - Highlights ASML achieved a sales growth of 30%, EUV lithography: • EUV system sales grew 30% to €9.1 billion in spite of the down cycle in the industry. • Shipped the first modules of the first High NA EUV EXE:5000 system DUV lithography: • DUV system sales grew 60% to €12.3 billion Full Year
Slide 7: Total net sales € million by End-use
Total net sales € million by End-use Net Sales Installed Base Management1 Logic Memory January 24, 2024 1 Installed Base Management equals our net service and field option sales Page 7 Public
Slide 8: Net system sales breakdown (Yearly)
Net system sales breakdown (Yearly) 2023 Technology End-Use Region-Gross Sales (ship to location) In lithography units Net system sales €21,939 million 2022 Net system sales €15,430 million January 24, 2024 Page 8 Public
Slide 9: Consolidated statements of operations € million
Consolidated statements of operations € million Year on Year 2019 2020 2021 2022 2023 Total net sales 11,820 13,979 18,611 21,173 27,559 Gross profit 5,280 6,798 9,809 10,700 14,136 Gross margin % 44.7 48.6 52.7 50.5 51.3 Other income 1 — — 214 — — R&D costs (1,968) (2,201) (2,547) (3,254) (3,981) S
Slide 10: Consolidated statements of cash flows € million
Consolidated statements of cash flows € million Year on Year 2019 2020 2021 2022 2023 Cash and cash equivalents, beginning of period 3,121 3,532 6,049 6,952 7,268 Net cash provided by (used in) operating activities 3,276 4,628 10,847 8,487 5,443 Net cash provided by (used in) investing activities (1
Slide 11: Consolidated balance sheets € million
Consolidated balance sheets € million Year on Year Assets 2019 2020 2021 2022 2023 Cash & cash equivalents and short-term investments 4,718 7,352 7,590 7,376 7,010 Net accounts receivable and finance receivables 2,773 3,421 4,597 6,680 5,774 Contract assets 231 119 165 132 240 Inventories, net 3,809
Slide 12: Q1 2024 results and 2024 outlook
Q1 2024 results and 2024 outlook Q1 2024* 2024 outlook3 Total net sales €5.3 billion • Our outlook is unchanged. We expect similar Net system sales €4.0 billion revenue compared to 2023 with a slightly lower gross margin compared to 2023 Installed Base Management1 €1.3 billion • Estimated annualized
Slide 13: Capital return to shareholders
Capital return to shareholders • In 2023, ASML paid total dividends of €2.3 billion, consisting of 2022 final dividend and three interim dividends, and purchased €1.0 billion worth of shares • ASML intends to declare a total dividend for the year 2023 of €6.10 per ordinary share. Recognizing three i
Slide 14: Industry developments
Industry developments Peter Wennink, President and CEO April 24, 2024 Page 14 Public
Slide 15: Strong fundamental trends drive the semiconductor industry
Strong fundamental trends drive the semiconductor industry Climate change and Social and Connected world resource scarcity economic shifts Cloud Energy Electrification, Working, Healthcare, Hyperconnectivity infrastructure transition smart mobility learning remotely medical tech Edge Agricultural Sm
Slide 16: New applications will generate more than 2,000 zetabyte of data by 2035
New applications will generate more than 2,000 zetabyte of data by 2035 Global data creation projected to grow exponentially based on increased individual usage, supporting AI Ubiquitous data everywhere; the age of artificial intelligence 2,142 Global data creation [zbyte] 1,000,000,000 terabyte = 1
Slide 17: AI: Strong potential to drive entire industry forward
AI: Strong potential to drive entire industry forward Mainstream markets grow in volume while high performance continues to follow Moore's law Present AI AI AI AI AI AI AI AI AI AI AI AI AI Connecting IoT Connecting IoT Sensors Sensors Data generating compute Mainstream edge compute Data AI power co
Slide 18: ASML ecosystem has considerable means to drive innovation
ASML ASML ecosystem has considerable means to drive innovation Peers Semi Top 50 technology ecosystem companies generated over US$600 Billion of EBIT in 2022 Non-Semi Semi 6.8 7.8 6.0 4.9 4.2 equipment 37.5 3.5 1.8 34.2 6.9 5.5 4.4 4.0 10.1 2.3 1.4 Semi manufacturing 114.0 15.2 14.5 4.3 4.2 14.5 7.5
Slide 19: Market expectations remain unchanged: around 1 trillion of sales by 2030
Market expectations remain unchanged: around 1 trillion of sales by 2030 Gartner Techinsights/VLSI IBS 1200 1100 Total 1000 semiconductor revenue 900 is expected 800 to top $1 trillion by 2030 700 600 500 400 300 200 100 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 April 24, 2024 Page 19
Slide 20: Growth in numbers of employees worldwide (year-end)
Growth in numbers of employees worldwide (year-end) Slide 20 April 24, 2024 US Asia EMEA NL 2022: 22,715 2023: 22,860 2022: 7,505 2022: 8,870 2023: 25,085 40% non-Dutch 2023: 8,225 2023: 9,110 (incl. NL) 123 nationalities Total worldwide 2022: 39,090 144 nationalities* 2023: 42,420 20% female* In FT
Slide 21: We drive progress on ESG sustainability through 9 themes
We drive progress on ESG sustainability through 9 themes Environment 1 Energy efficiency Net zero greenhouse gas emissions in our value chain by 2040 & climate action 2 Circular Zero waste from operations to landfill and incineration by 2030 economy Social 3 Attractive ASML attracts and retains a he
Slide 22: We continue to make progress on ESG Sustainability
We continue to make progress on ESG Sustainability Environment Social Governance 2023 highlights 2023 highlights 2023 highlights Operations & buildings footprint (scope 1+2): ~€15 million commitments in community Supervisory Board ESG Committee installed -8% in 2023 vs 2022 initiatives via cas
Slide 23: First EXE:5000 system completely built
First EXE:5000 system completely built Wafer, Reticle, Source and Optics Main Modules installed, and first EXE:5000 built April 24, 2024 Page 23 Public
Slide 24: High NA EUV (EXE): The result of 40 years evolution at ASML
High NA EUV (EXE): The result of 40 years evolution at ASML • After 0.33 NA EUV, the 0.55 NA EUV (High NA) tool is the next logical step • Relative to 0.33 NA, the 0.55 NA system provides finer resolution enabling an almost 3x increase in transistor density, at a similar productivity, in support of
Slide 25: Overview of the Company's business, financial situation and ESG sustainability
Overview of the Company’s business, financial situation and ESG sustainability (Non-voting item) April 24, 2024 Page 25 Public
Slide 26: Financial statements, results and dividend
Financial statements, results and dividend April 24, 2024 Page 26 Public
Slide 27: Advisory vote on the remuneration report
Advisory vote on the remuneration report for the Board of Management and the Supervisory Board for the financial year 2023 (Voting item) A April 24, 2024 Page 27 Public
Slide 28: Remuneration Report 2023
2023 Remuneration Report Terri Kelly, Chair Remuneration Committee April 24, 2024 Page 28 Public
Slide 29: Remuneration Report 2023
Remuneration Report 2023 Summary The Remuneration Report 2023 Increased Transparency Main elements of the execution for the Board of Management of the Board of Management • Changes were made to further and the Supervisory Board enhance transparency where Remuneration Policy in 2023 are: complies wit
Slide 30: Short Term Incentive Board of Management 2023
Short Term Incentive Board of Management 2023 Result: 128.2% of target April 24, 2024 Page 30 Public
Slide 31: Long Term Incentive Board of Management 2021-2023
Long Term Incentive Board of Management 2021-2023 Result: 157.7% of target April 24, 2024 Page 31 Public
Slide 32: Advisory vote on the remuneration report
Advisory vote on the remuneration report for the Board of Management and the Supervisory Board for the financial year 2023 (Voting item) A April 24, 2024 Page 32 Public
Slide 33: Proposal to adopt the financial statements
Proposal to adopt the financial statements of the Company for the financial year 2023, as prepared in accordance with Dutch law (Voting item) B April 24, 2024 Page 33 Public
Slide 34: Our audit process
Our audit process 01. Our reports 02. Materiality IFRS Financial statements Materiality of EUR 350 million (2022: EUR 250 million) • Auditor’s report on consolidated and parent • 3.7% of 2023 income before income taxes company financial statements • Misstatements in excess of EUR 17.5 million have •
Slide 35: Audit observations
Audit observations Key audit matter • Revenue recognition: Non-financial information Identification of distinct performance • Limited assurance provided on the non- obligations in certain volume purchase financial information in the annual report agreements and revenue cut-off as defined in our assu
Slide 36: Proposal to adopt the financial statements
Proposal to adopt the financial statements of the Company for the financial year 2023, as prepared in accordance with Dutch law (Voting item) B April 24, 2024 Page 36 Public
Slide 37: Compliance with the Dutch Corporate Governance Code
Compliance with the Dutch Corporate Governance Code (Non-voting item) C April 24, 2024 Page 37 Public
Slide 38: Clarification of the Company's reserves and dividend policy
Clarification of the Company’s reserves and dividend policy (Non-voting item) D April 24, 2024 Page 38 Public
Slide 39: Proposal to adopt a dividend
Proposal to adopt a dividend in respect of the financial year 2023 (Voting item) E April 24, 2024 Page 39 Public
Slide 40: Discharge
Discharge April 24, 2024 Page 40 Public
Slide 41: Proposal to discharge the Board of Management
Proposal to discharge the members of the Board of Management from liability for their responsibilities in the financial year 2023 (Voting item) A April 24, 2024 Page 41 Public
Slide 42: Proposal to discharge the Supervisory Board
Proposal to discharge the members of the Supervisory Board from liability for their responsibilities in the financial year 2023 (Voting item) B April 24, 2024 Page 42 Public
Slide 43: Discharge
Discharge April 24, 2024 Page 43 Public
Slide 44: Proposal to approve the number of shares for the Board of Management
Proposal to approve the number of shares for the Board of Management (Voting item) April 24, 2024 Page 44 Public
Slide 45: Composition of the Board of Management
Composition of the Board of Management April 24, 2024 Page 45 Public
Slide 46: Notification of intended reappointment of Mr. C.D. Fouquet
Notification of the intended reappointment of Mr. C.D. Fouquet as a member of the Board of Management in the position of A President and Chief Executive Officer (Non-voting item) April 24, 2024 Page 46 Public
Slide 47: Notification of intended appointment of Mr. J.P. Koonmen
Notification of the intended appointment of Mr. J.P. Koonmen as a member of the Board of Management in the B position of Chief Customer Officer (Non-voting item) April 24, 2024 Page 47 Public
Slide 48: Composition of the Supervisory Board
Composition of the Supervisory Board April 24, 2024 Page 48 Public
Slide 49: Discussion of the updated profile of the Supervisory Board
Discussion of the updated profile of the Supervisory Board (Non-voting item) A April 24, 2024 Page 49 Public
Slide 50: Introduction to agenda items
Introduction to agenda items (Voting items) 7,7&7 B C D April 24, 2024 Page 50 Public
Slide 51: Proposal to reappoint Ms. A.P. Aris
Proposal to reappoint Ms. A.P. Aris as a member of the Supervisory Board (Voting item) B April 24, 2024 Page 51 Public
Slide 52: Proposal to reappoint Mr. D.M. Durcan
Proposal to reappoint Mr. D.M. Durcan as a member of the Supervisory Board (Voting item) C April 24, 2024 Page 52 Public
Slide 53: Proposal to reappoint Mr. D.W.A. East
Proposal to reappoint Mr. D.W.A. East as a member of the Supervisory Board (Voting item) D April 24, 2024 Page 53 Public
Slide 54: Composition of the Supervisory Board in 2025
Composition of the Supervisory Board in 2025 (Non-voting item) E April 24, 2024 Page 54 Public
Slide 55: Authorizations to issue ordinary shares
Authorizations Proposals to authorize the Board of Management to issue ordinary shares or grant rights to subscribe for ordinary shares, as well as to restrict or exclude the preemption rights accruing to shareholders (Voting items) April 24, 2024 Page 55 Public
Slide 56: Introduction to agenda items
Introduction to agenda items (Voting items) April 24, 2024 9&10 Page 56 Public
Slide 57: Proposal to authorize share repurchase up to 10%
Proposal to authorize the Board of Management to repurchase ordinary shares up to 10% of the issued share capital (Voting item) April 24, 2024 Page 57 Public
Slide 58: Proposal to cancel ordinary shares
Proposal to cancel ordinary shares (Voting item) April 24, 2024 Page 58 Public
Slide 59: Agenda items
Agenda items (Voting items) April 24, 2024 8, 9 &10 Page 59 Public
Slide 60: Any other business
Any other business April 24, 2024 Page 60 Public
Slide 61: Closing
Closing April 24, 2024 Page 61 Public
Slide 62: April 24, 2024 Page 62 Public
April 24, 2024 Page 62 Public