Asml Holding Nv · EURONEXT:ASML
Asml Holding Nv — Shareholder Meeting (April 2023)
68 slides from Asml Holding Nv's shareholder meeting presentation, Apr 26, 2023
Slide 1: Annual General Meeting of ASML Holding N.V.
Annual General Meeting of ASML Holding N.V. Veldhoven, the Netherlands April 26, 2023 Public
Slide 2: Forward looking statements
Forward looking statements This document and related presentation and discussion contains statements that are forward-looking within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements with respect to expected trends, including trends in end markets, techno
Slide 3: Opening of the Annual General Meeting
Opening of the Annual General Meeting of ASML Holding N.V. (Non-voting item) April 26, 2023 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 26, 2023 Public
Slide 5: Financials
Financials Roger Dassen, Executive Vice President and CFO April 26, 2023 Public
Slide 6: 2022 - Highlights
2022 - Highlights ASML achieved a sales growth of 14%, reflecting EUV lithography: the continued strong global demand for our products • EUV system sales grew 12% to €7.0 billion - recognized 40 systems and shipped 54 • All five EUV customers have placed High-NA order DUV lithography: • DUV system s
Slide 7: Net Sales
Total net sales € million by End-use Net Sales Installed Base Management1 Logic Memory April 26, 2023 1 Installed Base Management equals our net service and field option sales Public
Slide 8: Net system sales breakdown (Yearly)
Net system sales breakdown (Yearly) 2022 Technology End-Use Region-Gross Sales (ship to location) In lithography units Net system sales €15,430 million 2021 Net system sales €13,653 million April 26, 2023 Public
Slide 9: Consolidated statements of operations
Consolidated statements of operations € million Year on Year 2018 2019 2020 2021 2022 Net sales 10,944 11,820 13,979 18,611 21,173 Gross profit 5,029 5.280 6,798 9,809 10,700 Gross margin % 46.0 44.7 48.6 52.7 50.5 Other income 1 - - - 214 - R&D costs (1,576) (1,968) (2,201) (2,547) (3,254) SG&A cos
Slide 10: Consolidated statements of cash flows
Consolidated statements of cash flows € million Year on Year 2018 2019 2020 2021 2022 Cash and cash equivalents, beginning of period 2,259 3,121 3,532 6,049 6,952 Net cash provided by (used in) operating activities 3,073 3,276 4,628 10,847 8,487 Net cash provided by (used in) investing activities (4
Slide 11: Consolidated balance sheets
Consolidated balance sheets € million Year on Year Assets 2018 2019 2020 2021 2022 Cash & cash equivalents and short-term investments 4,034 4,718 7,352 7,590 7,376 Net accounts receivable and finance receivables 2,384 2,773 3,421 4,597 6,680 Contract assets 96 231 119 165 132 Inventories, net 3,440
Slide 12: Q1 2023 results and business view
Q1 2023 results and business view 2023 outlook2 • For the full year, we expect continued strong growth • Mixed signals on demand from the different - net sales increase of over 25% end-market segments - slight improvement in gross margin • Estimated annualized effective tax rate: between 15% and 16%
Slide 13: Capital return to shareholders
Capital return to shareholders • Paid total dividends of €2.6 billion, consisting of 2021 final dividend and two interim dividends, and purchased €4.6 billion of shares in 2022 • ASML intends to declare a total dividend in respect of 2022 of €5.80 per ordinary share. Recognizing three interim divide
Slide 14: Industry developments
Industry developments Peter Wennink, President and CEO April 26, 2023 Public
Slide 15: We are seeing cyclicality as we face significant uncertainties in our business environment
We are seeing cyclicality as we face significant uncertainties in our business environment Reuters, March 29, 2023 Analysts have lowered expectations for 2023 semiconductor revenue CNBC, February 25, 2023 Financial Times, April 18,2023 Barron’s, January 3, 2023 April 26, 2023 Public
Slide 16: Inflation – our mitigation plans
Inflation – our mitigation plans Transparency in Supply Chain & recognition for downward trend Discussions with customers ongoing: • Current market dynamics force all of us to share the burden caused by inflation Therefore, we have to challenge our suppliers when they request to be compensated for i
Slide 17: Mixed headlines
Mixed headlines Samsung to cut chip output to ride out downturn; shares rally Reuters, April 2023 TSMC’s Outlook Disappoints as Global Tech Slump Persists Bloomberg, Bloomberg, AprilApril 20232023 Japan allocates US$7 billion for chip gear spending in 2024, the most significant hike in the world Tec
Slide 18: Two more areas of attention: geopolitics and risks to our know-how and IP
Two more areas of attention: geopolitics and risks to our know-how and IP April 26, 2023 Public
Slide 19: Growth will not be a straight line
Growth will not be a straight line We need to be able to deal with cyclicality Manage cyclicality Strong long-term growth Adjust capacity April 26, 2023 Public
Slide 20: What hasn't changed: Chips enable a smarter and more sustainable world
What hasn’t changed: Chips enable a smarter and more sustainable world Strong fundamentals underpin the industry’s longer-term growth Energy transition Healthcare and well-being Smart mobility Artificial intelligence April 26, 2023 Public
Slide 21: Market could grow to $1 trillion of sales by 2030
Market could grow to $1 trillion of sales by 2030 It is our responsibility to deliver what our customers need $1.3T $1.3T $1.1T $0.9T Semi sales ($T) $0.9T $0.6T $0.5T $0.4T 2019 2020 2021 2030 April 26, 2023 Sources: Gartner, McKinsey, SEMI.org Public
Slide 22: ASML's growth pattern
ASML’s growth pattern (2023 analyst estimates) €26.5 billion €21.2 €18.6 billion billion €14 €11.8 billion €10.9 billion billion €6.7 billion 2018 2019 2020 2021 2022 2023 ASML net sales Average analyst expectation April 26, 2023 Public
Slide 23: Scaling up means building capacity and finding talent around the world
Scaling up means building capacity and finding talent around the world Investing in our production capability Recruitment, onboarding and training 50,000 Continue ramp in e tended and new factories beyond 0 3 ASML global factory network 45,000 etwork of factories e tension plans for capacity beyond
Slide 24: Growth in numbers of employees worldwide
Growth in numbers of employees worldwide (end year 2022) April 26, 2023 Europe US 2021: 18,410 2022: 22,710 2021: 6,180 (incl. NL: 20,770) 2022: 7,505 Asia 2021: 7,430 Total worldwide 2022: 8,870 2021: 32,020 143 nationalities 2022: 39,090 19% female In FTE (Full Time Equivalent) end year, rounded n
Slide 25: ESG Sustainability strategy supports responsible growth
ESG Sustainability strategy supports responsible growth Based on 9 themes • Integrated governance • Engaged stakeholders Challenge • Transparent reporting Collaborate Care • Energy efficiency & climate action • Circular economy • Valued partner in our communities • Innovation ecosystem • Responsible
Slide 26: We remain committed to our ambitious ESG Sustainability goals
We remain committed to our ambitious ESG Sustainability goals and have taken important steps forward in 2022 Environment (example) Social (example) Governance (example) ▪ Connecting all buildings on headquarters ▪ Significantly scaling up investments in our ▪ ASML is one of founding members of the c
Slide 27: Investing for our growth
Investing for our growth April 26, 2023 Public
Slide 28: 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 26, 2023 Public
Slide 29: Financial statements, results and dividend
Financial statements, results and dividend April 26, 2023 Public
Slide 30: 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 2022 (Voting item) A April 26, 2023 Public
Slide 31: Remuneration Report 2022
2022 Remuneration Report Terri Kelly, Chair Remuneration Committee April 26, 2023 Public
Slide 32: Remuneration Report 2022
Remuneration Report 2022 Summary The Remuneration Report 2022 Highlight: Increased transparency Main elements of the execution for the Board of Management around remuneration of the Board of Management and the Supervisory Board Remuneration Policy in 2022 are: • We have made good strides towards com
Slide 33: Short Term Incentive Board of Management 2022
Short Term Incentive Board of Management 2022 Result: 99.1% of target • The Supervisory Board applied an adjustment for fast shipments on the STI financial performance metric EBIT Margin % result. Rationale: fast shipments are a change in the business model made on request of our customers. However,
Slide 34: Long Term Incentive Board of Management 2020-2022
Long Term Incentive Board of Management 2020-2022 Result: 182.2% of target April 26, 2023 Public
Slide 35: 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 2022 (Voting item) A April 26, 2023 Public
Slide 36: Proposal to adopt the financial statements
Proposal to adopt the financial statements of the Company for the financial year 2022, as prepared in accordance with Dutch law (Voting item) B April 26, 2023 Public
Slide 37: Our audit
Our audit 00. Our reports 01. Materiality IFRS Financial statements Materiality of EUR 250 million (2021: EUR 210 million) • Auditor’s report on consolidated and parent • 3.4% of 2022 income before income taxes company financial statements • Misstatements in excess of • Our opinion: unqualified EUR
Slide 38: Proposal to adopt the financial statements
Proposal to adopt the financial statements of the Company for the financial year 2022, as prepared in accordance with Dutch law (Voting item) B April 26, 2023 Public
Slide 39: Clarification of the Company's reserves and dividend policy
Clarification of the Company’s reserves and dividend policy (Non-voting item) C April 26, 2023 Public
Slide 40: Proposal to adopt a dividend
Proposal to adopt a dividend in respect of the financial year 2022 (Voting item) D April 26, 2023 Public
Slide 41: Discharge
Discharge April 26, 2023 Public
Slide 42: 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 2022 (Voting item) A April 26, 2023 Public
Slide 43: Proposal to discharge the Supervisory Board
Proposal to discharge the members of the Supervisory Board from liability for their responsibilities in the financial year 2022 (Voting item) B April 26, 2023 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 26, 2023 Public
Slide 45: Remuneration of the Supervisory Board
Remuneration of the Supervisory Board April 26, 2023 Public
Slide 46: Supervisory Board Remuneration
Supervisory Board Remuneration Terri Kelly, Chair Remuneration Committee April 26, 2023 Public
Slide 47: Supervisory Board Remuneration
Supervisory Board Remuneration Proposal to amend the Supervisory Board Remuneration Policy and quantum of remuneration Background • The current Remuneration Policy for the Supervisory Board was adopted by the General Meeting at the 2021 AGM. The proposed 2023 Remuneration Policy builds on the curren
Slide 48: Supervisory Board Remuneration
Supervisory Board Remuneration Rationale for the proposal to amend the remuneration of the Supervisory Board members • During 2022, the recurring bi-annual benchmark of Supervisory Board remuneration was performed. Outcome: within the AEX reference group, ASML now positions at the 77th percentile in
Slide 49: Supervisory Board Remuneration - proposal
Supervisory Board Remuneration - proposal Membership fees Current fee payable Proposed fee Chair Supervisory Board EUR 130,000 EUR 140,000 Vice-Chair Supervisory Board EUR 94,000 EUR 100,000 Member Supervisory Board EUR 75,000 EUR 80,000 Chair Audit Committee EUR 25,500 EUR 27,000 Member Audit Commi
Slide 50: Stakeholder feedback
Stakeholder feedback on the proposed Supervisory Board Remuneration Policy Shareholders and Shareholder representatives • Outreach to major shareholders (Top 20), proxy advisors and shareholder interest organizations • eedback provided regarding the ‘special circumstances’ clause, which has been tak
Slide 51: Remuneration of the Supervisory Board
Remuneration of the Supervisory Board April 26, 2023 Public
Slide 52: Proposal to amend the Remuneration Policy for the Supervisory Board
Proposal to amend the Remuneration Policy for the Supervisory Board (Voting item) A April 26, 2023 Public
Slide 53: Proposal to amend the remuneration of the Supervisory Board members
Proposal to amend the remuneration of the members of the Supervisory Board (Voting item) B April 26, 2023 Public
Slide 54: Composition of the Board of Management
Composition of the Board of Management April 26, 2023 Public
Slide 55: Notification of the intended appointment of Mr. W.R. Allan
Notification of the intended appointment of Mr. W.R. Allan (Non-voting item) April 26, 2023 Public
Slide 56: Composition of the Board of Management
Composition of the Board of Management April 26, 2023 Public
Slide 57: Composition of the Supervisory Board
Composition of the Supervisory Board April 26, 2023 Public
Slide 58: Proposal to appoint Mr. N.S. Andersen
Proposal to appoint Mr. N.S. Andersen as a member of the Supervisory Board (Voting item) A April 26, 2023 Public
Slide 59: Proposal to appoint Mr. J.P. de Kreij
Proposal to appoint Mr. J.P. de Kreij as a member of the Supervisory Board (Voting item) B April 26, 2023 Public
Slide 60: Composition of the Supervisory Board in 2024
Composition of the Supervisory Board in 2024 (Non-voting item) C April 26, 2023 Public
Slide 61: Composition of the Supervisory Board
Composition of the Supervisory Board April 26, 2023 Public
Slide 62: Proposal to appoint PricewaterhouseCoopers Accountants N.V. as external auditor
Proposal to appoint PricewaterhouseCoopers Accountants N.V. as external auditor for the reporting year 2025, in light of the mandatory external auditor rotation (Voting item) April 26, 2023 Public
Slide 63: 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 26, 2023 Public
Slide 64: Introduction to agenda items
Introduction to agenda items (Voting items) April 26, 2023 11&12 Public
Slide 65: Proposal to authorize repurchase of ordinary shares
Proposal to authorize the Board of Management to repurchase ordinary shares up to 10% of the issued share capital (Voting item) April 26, 2023 Public
Slide 66: Proposal to cancel ordinary shares
Proposal to cancel ordinary shares (Voting item) April 26, 2023 Public
Slide 67: Any other business
Any other business April 26, 2023 Public
Slide 68: April 26, 2023 Public
April 26, 2023 Public