United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 20-F

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

for the fiscal year ended December 31, 2025

Commission file number 001-33463

ASML HOLDING NV

(Exact Name of Registrant as Specified in Its Charter)

The Netherlands

(Jurisdiction of incorporation or organization)

De Run 6501, 5504 DR Veldhoven, The Netherlands

(Address of principal executive offices)

Jim Kavanagh

Telephone: +31 40 268 3938 E-mail: jim.kavanagh@asml.com

De Run 6501, 5504 DR, Veldhoven, The Netherlands

(Name, Telephone, E-mail, and / or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class Trading SymbolName of each exchange on which registered

Ordinary SharesASML The Nasdaq Stock Market LLC

(nominal value €0.09 per share)

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

Indicate the number of outstanding shares of each of the issuer’s classes of

capital or common stock as of the close of the period covered by the annual report.

385,417,665 Ordinary Shares

(nominal value €0.09 per share)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒ No ☐

If this report is an annual or transition report, indicate by check mark if the registrant

is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant

was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically

every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the

preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company.

See definition of "large accelerated filer,” “accelerated filer" and “emerging growth company" in Rule 12b-2 of the Exchange Act.:

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected

not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting

Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal

control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared

or issued its audit report.

Yes ☒ No ☐

If securities are registered pursuant to Section 12 (b) of the Act, indicate by check mark whether the financial statements of the registrant included in the

filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive- based compensation

received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare

the financial statements included in this filing:

U.S. GAAP ☒ International Financial Reporting Standards as issued by the

International Accounting Standards Board ☐ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark

which financial statement item the registrant has elected to follow.

Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a

shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

Name and address of person authorized to receive notices and communications from the Securities and Exchange Commission:

James A. McDonald

Skadden, Arps, Slate, Meagher & Flom (UK) LLP

22 Bishopsgate, London, England EC2N 4BQ

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	3
At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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ASML is a leading innovator in the global

semiconductor ecosystem. Working

closely with our customers and partners,

we provide the hardware, software and

services that help chipmakers create

more powerful, affordable and energy-

efficient microchips. These chips power

modern life and help address some

of humanity’s toughest challenges.

We keep powering

technology forward...

| …through customer collaboration. | …through cutting- edge physics. | | --- | --- || Read more about this story | | --- || Read more about this story | | --- || …through collective innovation. | …through diverse, inspired talent. | | --- | --- || Read more about this story | | --- || Read more about this story | | --- || …using the potential of AI. | …while aiming to reduce environmental impact. | | --- | --- || Read more about this story | | --- || Read more about this story | | --- |

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	4
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Powering<br><br>technology<br><br>forward…
30…through customer collaboration.<br><br>32…through cutting-edge physics.<br><br>34…through collective innovation.<br><br>36…through diverse, inspired talent.<br><br>38…using the potential of AI.<br><br>40…while aiming to reduce<br><br>environmental impact.		Read more in Highlights online >
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Our 2025 online report highlights<br><br>key information from this pdf.		1. Strategic report
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5	Special note regarding forward-<br><br>looking statements
6	At a glance – 2025 overview
8	In conversation with our CEO
	Our business
14	Our holistic approach to lithography
18	Our products and services
22	Our marketplace
28	Our business strategy
29	Deepen customer trust
31	Extend our technology and holistic<br><br>product leadership
33	Strengthen ecosystem<br><br>relationships
35	Create an exceptional workplace
37	Drive operational excellence
39	Deliver on ESG sustainability
41	Our business model
44	Engaged stakeholders
	Financial performance
51	Message from our CFO
54	Financial performance KPIs
59	Long-term growth opportunities
	Risk and security
61	Understanding ASML’s risk<br><br>management framework
63	How we manage risk
66	Risk factors
74	Information security		2. Corporate governance
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	Corporate governance
76	Corporate governance at a glance
78	Board of Management
80	Supervisory Board
83	Other Board-related matters
85	AGM and share capital
88	Financial reporting and audit
90	Compliance with corporate<br><br>governance requirements
	Supervisory Board report
91	In conversation with the Chair of<br><br>the Supervisory Board
94	Supervisory Board focus in 2025
98	Meetings and attendance
99	Composition and skills
101	Evaluation
102	Supervisory Board committees
112	Financial statements and profit<br><br>allocation
	Remuneration report
113	In conversation with the Chair of the<br><br>Remuneration Committee
115	Board of Management remuneration<br><br>at a glance
117	Remuneration Committee
119	Board of Management remuneration
134	Supervisory Board remuneration
137	Other information		3. Sustainability statements
---	---
139	Limited assurance report of the<br><br>independent auditors on the<br><br>Sustainability statements
	General disclosures
142	Basis for preparation
144	ESG sustainability governance
146	ESG sustainability at a glance
147	Value chain and ecosystem overview
148	Environmental and human rights<br><br>due diligence
150	Impact, risk and opportunity<br><br>management
153	Environmental
154	Energy efficiency and climate action
188	Circular economy
203	EU Taxonomy
209	Other disclosures: Water<br><br>management in our own operations
210	Social
211	Attractive workplace for all
237	Responsible value chain
246	Innovation ecosystem
251	Valued partner in our communities
261	Governance
262	ESG integrated governance
269	Reference table		4. Financial statements
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	Consolidated financial statements
274	Reports of independent registered<br><br>public accounting firms
277	Consolidated statements of<br><br>operations
278	Consolidated statements of<br><br>comprehensive income
279	Consolidated balance sheets
280	Consolidated statements of<br><br>shareholders’ equity
282	Consolidated statements of<br><br>cash flows
283	Notes to the Consolidated<br><br>financial statements
326	Other appendices
343	Definitions
351	Exhibit index		A definition or explanation of abbreviations, technical terms<br><br>and other terms used throughout this Annual Report can<br><br>be found in the Definitions section. In some cases, numbers<br><br>have been rounded for readers’ convenience.<br><br>This report comprises regulated information within the<br><br>meaning of articles 1:1 and 5:25c of the Dutch Financial<br><br>Markets Supervision Act (Wet op het Financieel Toezicht).<br><br>The sections Strategic report, Sustainability statements<br><br>(except for the Limited assurance report of the independent<br><br>auditor on the Sustainability statements), and subsections<br><br>Corporate governance and Supervisory Board report,<br><br>together form the Management Report.<br><br>In this report the name ‘ASML’ is sometimes used for<br><br>convenience in contexts where reference is made to ASML<br><br>Holding N.V. and/or any of its consolidated subsidiaries, as<br><br>the context may require.<br><br>References to our website and/or video presentations in<br><br>this Annual Report are for reference only and none nor any<br><br>portion thereof are incorporated by reference in this report.<br><br>© 2025-2026, ASML Netherlands B.V. All Rights Reserved.
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STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	5
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At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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Special note regarding forward-looking statements

General

This Annual Report and related discussions

contains statements relating to our business,

expected results, business and industry

trends, environmental targets, and other

matters that are “forward-looking” within the

meaning of the Private Securities Litigation

Reform Act of 1995. You can generally

identify these statements by the use of words

like “may”, “will”, “opportunity”, “potential”,

“could”, “should”, “confident”, “project”,

“believe”, “prospects”, “anticipate”, “expect”,

“plan”, “estimate”, “forecast”, “model”,

“aim”, “seek”, “intend”, “continue”, “commit”,

“target”, “future”, “progress”, “goal” and

variations of these words or comparable

words. They appear in a number of places

throughout this Annual Report and include

statements with respect to: expected trends,

plans, expectations, strategies, priorities,

goals, prospects and outlook, expected

financial results, including expected results

for Q1 including expectations with respect

to net sales, gross margin, R&D costs, SG&A

costs, and expected financial results for full

year 2026, including expected full year 2026

total net sales and growth, gross margin and

annualized effective tax rate, sales by market

segment, EUV and non-EUV sales and net

service and field option sales and expected

drivers thereof, and other full year 2026

expectations and outlook, expectations with

respect to expected net sales growth in 2026

and other statements with respect to outlook

and expected drivers thereof, statements

made at our 2024 Investor Day, including

revenue and gross margin opportunity,

model, opportunity and potential for 2030

and annual growth in sales 2025-2030 and

expectations on growth in semiconductor

end markets, statements made in the section

entitled “Long-term growth opportunities”,

expected capital expenditures and R&D

spending targets and plans, expected business

and industry trends and outlook, including

expected semiconductor industry size and

trends and trends in markets served by our

customers, expected trends in product mix

and geography, expected growth in the

semiconductor market and industry and

ecosystem and expectations of worldwide

semiconductor sales and growth by 2030,

expected GDP outlook, business environment

trends, including expected demand,

expected business growth, expected growth

in global wafer capacity, statements with

respect to AI, including goals for use of AI in

our portfolio and the expected impact of AI

demand on capacity buildup, our business,

industry and results, expected benefits of

our investment in Mistral AI, statements

with respect to EUV adoption, including with

respect to EUV and DUV sales, electrification

and the energy transition, expected growth

in semiconductor end markets and market

opportunity for 2030 and outlook CAGR

from 2025 to 2030 and key drivers and

global trends expected to fuel semiconductor

market growth in 2026 and in the longer

term, statements made in the section entitled

“Macroeconomic and geopolitical trends”,

Moore’s Law, expected trends in customer

demand, export control policy and regulations

and expected impact on us, our plans to

increase capacity, expectations about the

use of our systems by customers,

customer plans, product roadmaps and

customer roadmaps, our expectation that

lithography will continue to be at the heart of

customer innovation, expected increase in

critical lithography exposures, statements

with respect to our product portfolio,

expected productivity and other attributes

and benefits of our systems, intentions with

respect to grants of performance shares, our

environmental, social and governance (ESG)

and sustainability strategy, plans, commitments,

projections, pathway and targets, including

emissions and waste reduction aims,

commitments and targets and our expectations

about meeting or being on track to meet

these targets and other ESG goals and

targets, recycling and refurbishment initiatives,

energy-saving and renewable energy use

strategies and targets, including plans and

targets to achieve greenhouse gas neutrality

and emissions reductions targets, our target

to achieve zero waste from operations to

landfill and incineration and target dates to

achieve those targets, assumptions underlying

our projections related to ESG targets and

reliance on suppliers to meet ESG goals to

enable us to meet our ESG goals, plans to

purchase renewable energy and carbon

credits, potential for semiconductors to reduce

greenhouse gas emissions, plans for our

systems to use less energy and our energy

savings plans and diversity and other ESG

targets and commitments, capital allocation

policy and cash return and dividend policy

and statements about our new share buyback

program and our proposed dividend for 2026

and other non-historical statements.

These forward-looking statements are not

historical facts, but rather are based on current

expectations, estimates, assumptions and

projections about business and future financial

results, and readers should not place undue

reliance on them. Forward-looking statements

do not guarantee future performance, and

actual results may differ materially from

projected results as a result of certain risks

and uncertainties. These risks and uncertainties

include, without limitation, those described

under the section entitled “How we manage

risk – Risk factors”. These forward-looking

statements are made only as of the date

of this Annual Report. We do not undertake

to update or revise the forward-looking

statements, whether as a result of new

information, future events or otherwise.

Regarding emission reduction targets

This Annual Report contains statements

relating to our approach to and progress

on achieving certain energy efficiency

and greenhouse gas emissions reduction

targets, including our ambition to achieve

greenhouse gas neutrality.

References related to “greenhouse gas

neutral” for scope 1, 2 and categories 6

and 7 (our own activities) of scope 3 mean

remaining emissions, after ASML’s efforts

to reach its GHG emission reduction targets,

are compensated for by the same amount of

metric tons of carbon credits that are verified

against recognized quality standards.

Compensation of emissions outside our own

activities is dependent on the value chain.

Unless otherwise indicated, information

contained in this Annual Report concerning

greenhouse gas emission reduction targets

is based on our internal environmental

management system implemented to monitor

energy use and emissions, as well as publicly

available information, including the guidance

from the Greenhouse Gas Protocol for

the calculation of the GHG emissions,

the recommendations of the Task Force

on Climate-related Financial Disclosures

(TCFD) and certain conversion factors.

Given that such data in the Sustainability

statements is derived from various sources,

is processed differently across our operating

subsidiaries and departments, and depends

on certain estimates and assumptions, there

is an inherent degree of uncertainty in the

estimations of such data. You are cautioned

not to give undue weight to such data.

Forward-looking information concerning

greenhouse gas emissions and greenhouse

gas neutrality are subject to qualifications

and the uncertainties as set forth under

“Special note regarding forward-looking

statements—General” in this Annual Report.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	6
At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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At a glance – 2025 overview

ASML has been helping microchip

manufacturers power technology forward

since 1984. Our holistic lithography

solutions, software and services help

chipmakers achieve their highest

yields and best performance.

Our purpose

Unlocking the potential of people

and society by pushing technology

to new limits.

Our vision

We enable groundbreaking

technology to solve some of

humanity’s toughest challenges.

Our mission

Together with our partners,

we provide leading patterning

solutions that drive the

advancement of microchips.

<br><br>88%<br><br>Customer satisfaction<br><br>survey score
<br><br>€4.7bn<br><br>Research & Development
<br><br>5,100<br><br>Total number of suppliers		<br><br>€32.7bn<br><br>Total net sales
---
<br><br>52.8%<br><br>Gross margin
<br><br>€8.5bn<br><br>Returned to shareholders
<br><br>535<br><br>System sales in units		<br><br>> 44,000<br><br>Total employees (FTEs)
---
<br><br>21%<br><br>Women in our workforce<br><br>(headcount)
<br><br>143<br><br>Nationalities
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	7
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At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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At a glance – 2025 overview (continued)

<br><br>0 kt<br><br>Net scope 1 and 2 CO2e emissions
<br><br>11.5 Mt<br><br>Net scope 3 CO2e emissions
<br><br>90%<br><br>Reuse rate of parts returned<br><br>from the field and factory
<br><br>€1,750<br><br>Amount invested in communities<br><br>(per employee), including<br><br>employee giving

Our values
We<br><br>challenge<br><br>By questioning the status<br><br>quo and pushing boundaries,<br><br>keeping technology<br><br>moving forward.	We<br><br>collaborate<br><br>By tapping into our collective<br><br>potential together with our<br><br>partners and stakeholders,<br><br>expanding our knowledge<br><br>and skills, learning from<br><br>each other and creating<br><br>better solutions.	We<br><br>care<br><br>By acting with integrity<br><br>and respect, and providing<br><br>a safe, inclusive and trusting<br><br>environment where our<br><br>people can learn and grow.		Global scale	Asia<br><br>China<br><br>Japan<br><br>Malaysia<br><br>Singapore<br><br>South Korea<br><br>Taiwan	EMEA<br><br>Belgium<br><br>France<br><br>Germany<br><br>Ireland<br><br>Israel<br><br>Italy<br><br>Netherlands<br><br>United Kingdom	North<br><br>America<br><br>Arizona<br><br>California<br><br>Colorado<br><br>Connecticut<br><br>Idaho<br><br>Massachusetts<br><br>New Mexico<br><br>New York<br><br>Oregon<br><br>Texas<br><br>Utah<br><br>Virginia
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	60+<br><br>Locations	3<br><br>Continents			Empowered colleagues
---	---
	We promote a<br><br>culture of ownership,<br><br>where people feel<br><br>empowered to act<br><br>and be accountable.

Our commitment<br><br>to sustainability
E	We aim to help expand computing<br><br>power while minimizing energy use,<br><br>emissions and waste.
S	We aim to deliver responsible growth<br><br>that benefits all our stakeholders.
G	We aim to act on our responsibilities<br><br>and anchor them across our<br><br>entire business through integrated<br><br>governance, engaged stakeholders<br><br>and transparent reporting.

In conversation with Christophe Fouquet_v3.jpg

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	8
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In conversation with Christophe Fouquet

President, Chief Executive Officer and Chair of the Board of Management

Christophe Fouquet<br><br>President, Chief Executive Officer and<br><br>Chair of the Board of Management

“Innovation is the

engine of ASML –

the key to both

our past and future

successes.”

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	9
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In conversation with Christophe Fouquet (continued)

President, Chief Executive Officer and Chair of the Board of Management

| Christophe Fouquet discusses the principal themes of the year, the achievements that gave him most satisfaction and how ASML aims to maintain its performance in the years ahead while meeting the needs of a diverse group of stakeholders | | --- || Q | Looking back at the year, what were the most significant milestones and challenges? | | --- | --- |

In 2025, the far-reaching impact of artificial

intelligence (AI) on society and our industry

became clear. At first, we believed that AI

would drive demand from only a limited

portion of our customer base. At the end of

the year, we saw that new and significant

demand for AI was starting to fuel capacity

build-up across our broad customer base –

a powerful trend that we believe will continue

in 2026 and beyond.

We have seen strong execution of our

technology roadmap across the business,

most particularly in EUV with our TWINSCAN

NXE:3800E system which continues to be

adopted by advanced Logic and DRAM

customers due to its higher productivity and

cost of technology benefits. DRAM has been

particularly remarkable this year, as the work

we have done to reduce the cost of our

EUV per exposure through increased maturity

and productivity led to increased adoption.

We have also achieved outstanding progress

on EUV 0.55 NA, with a number of customers

reporting that it is now more mature than

EUV 0.33 NA was at the same stage of

development. After almost 10 years of

tremendous work from so many people in

ASML, we have released our first TWINSCAN

EXE:5200B in full specification to our

first customer.

Furthermore, in line with our commitment

to support customers in the 3D integration

space, we were pleased to ship ASML’s

first advanced packaging product, the

TWINSCAN XT:260, which delivers up to

four times the productivity of existing

solutions, and we will continue exploring

further opportunities in this growing field.

The outcome of our endeavors is clear to

see in the performance of the business,

which is explained in full elsewhere in this

annual report. Sales grew to €32.7 billion,

up by 15.6% over 2024. The gross margin

was 52.8%, up by 1.5 percentage points

from 2024, and we returned €8.5 billion to

shareholders. Our backlog currently stands

at a healthy level of €38.8 billion. These

results have been achieved in the context

of a high degree of geopolitical and market

uncertainty, which our team has navigated

with care and expertise. None of this would

have been possible without our great team

of committed colleagues around the world.

The year was also characterized by

ongoing work to make sure that our extensive

environmental, social and governance (ESG)

plans underpin our commitments to customers,

employees, suppliers, shareholders and

society. We have met our target to be

greenhouse gas neutral for scope 1 and 2,

and our engagement in the community has

more than quadrupled in the last two years.

I am also pleased to see the strong involvement

of our colleagues in these efforts.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	10
At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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In conversation with Christophe Fouquet (continued)

President, Chief Executive Officer and Chair of the Board of Management

Our guiding principle is to always<br><br>ask where we can add the most<br><br>value and have the greatest impact<br><br>for our customers, both today and<br><br>in the future.”
Christophe Fouquet
President, Chief Executive Officer and Chair of the Board of Management		Q	What technological<br><br>breakthroughs have given you<br><br>the greatest sense of pride?
---	---

If I had to pick just one, then it would be

EUV, where, through major technological

innovation, we made progress on reducing

the cost of technology for our customers,

which led to improved lithography intensity,

particularly in DRAM.

Looking at 0.33 NA EUV, we successfully

carried out some major changes to our

TWINSCAN NXE:3800E, delivering a huge

jump in performance in comparison with the

TWINSCAN NXT:3600D from 160 wafers per

hour to 230 wafers per hour. This system is

now fully adopted by our customers thanks

to the very hard work and collaboration of

so many ASML employees.

In terms of High NA EUV, the dynamics

around productivity, imaging and overlay

performance are very positive. By the end

of the year, our customers had run more than

400,000 wafers on High NA EUV systems.

We continued to move forward on qualifying

this system for high-volume manufacturing

and we demonstrated full specification of the

TWINSCAN EXE:5200B at a customer site.

That was a key milestone.

Turning to DUV, one of the year’s

pivotal moments was the evolution in our

approach to developing these systems,

with an increasing focus on improving quality

and cost efficiency, as well as advancing

technology. This is a subtle but important

shift that we believe will enable us to better

serve our customers by listening to their

real needs and providing the appropriate

solutions. This also illustrates the ability of

our team to adjust to the evolving needs of

our customers.

Our holistic lithography team is raising

the bar across many products, but I would

like to particularly highlight progress on multiple

e-beam (multibeam). We are now experiencing

positive traction with our multibeam system,

with the platform now at a level of maturity

where it can be considered for high-volume

manufacturing. We believe performance is

excellent – a tribute to our team which has

done a great job, working very closely with

customers, and in the next year I expect

multibeam to be adopted more extensively

by the market.

Finally, 2025 saw us enter a landmark

partnership with Mistral AI. We have invested

€1.3 billion in Mistral AI as lead investor and

hold an approximately 11% share on a fully

diluted basis in the company. This agreement

has laid the foundation for a long-term

collaboration to explore the use of AI models

across our product portfolio as well as

research, development and operations.

The aim is to benefit our customers with

faster time-to-market and higher performance

holistic lithography systems, while also

making ASML more efficient.

Q	How will the appointment of a<br><br>new CTO support innovation<br><br>at ASML?

Innovation is the engine of ASML – the

key to both our past and future successes

– and in 2025, we appointed a new Chief

Technology Officer (CTO) succeeding Martin

van den Brink who retired in 2024. With over

25 years of experience at ASML, most recently

as Executive Vice President for Applications,

Marco Pieters was the outstanding candidate

for the role. The Supervisory Board intends to

appoint Marco as a member of the Board of

Management per the 2026 AGM.

Marco and I have worked together for many

years, and I look forward to continuing our

relationship. We believe his appointment will

add even more focus and more bandwidth to

our innovation capabilities and is another

example of our dedication to supporting our

customers in driving their technology roadmaps.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	11
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In conversation with Christophe Fouquet (continued)

President, Chief Executive Officer and Chair of the Board of Management

Q	ASML has a long-standing<br><br>commitment to ESG. What<br><br>progress did you make<br><br>in 2025?

We believe that leading the way on ESG

issues has always been the right thing to

do for all our stakeholders as well as for the

planet we all share. Over the years, we have

established and systematically executed

plans to achieve clear ESG targets, and

this continued at pace during 2025.

Turning first to the ‘E’ in ESG, the energy

consumption of an EUV machine is a long-

term challenge. Today, the energy consumption

per wafer pass has fallen by 57% since the

shipment of the first system for high-volume

manufacturing in 2018, and we are now targeting

a further 30-40% reduction over the next five

to ten years. In our supply chain, emissions

have decreased. However, more effort is

needed to reach our ambitious target.

AI growth fuels concerns related to energy

consumption by data centers. Global

electricity supply is projected to grow over

the next 10 years, but if we extrapolate the

current data on energy demand from leading-

edge AI models, that is not fast enough. To

address this, there will need to be both more

efficient AI models and improved

semiconductors. If we do not act together as

an industry, emissions from the production of

semiconductors are forecast to increase by a

factor of four by 2030. This is one of the key

challenges ASML and the industry as a whole

have to face, and with urgency.

The social element of ESG has seen us

continue to develop numerous community

partnership programs across a wide range of

our global locations. In particular, we support

many STEM (science, technology, engineering

and math) education projects, and we were

proud to celebrate our 500th school partnership

during the year. We also invest in innovation,

for example by supporting organizations such

as imec, a leading research and innovation

hub in nanoelectronics and digital technologies.

During 2025 we extended this relationship

by signing a strategic partnership agreement

to strengthen collaboration on emerging and

societal challenges, and to develop initiatives

focused on sustainable innovation in Europe.

Closer to home, one of our key aims is to be a

positive force in the communities around us. We

know that our rapid growth can pose challenges

for a location such as the Veldhoven area close

to our main campus in the Netherlands,

particularly with regard to affordable housing.

We have therefore continued to invest in a range

of housing projects that will help local people

also experience the value we bring.

In terms of Governance, 20% of the long-

term incentive plan for our leadership team is

made up of environmental and social metrics,

which means that bonuses awarded to our

senior management are directly linked to how

the business has performed on ESG matters.

The feedback we receive from organizations

that monitor ESG performance is very positive,

frequently positioning ASML as a leader in

our industry.

Q	Can you give some<br><br>examples of how ASML has<br><br>strengthened relationships<br><br>with stakeholders over<br><br>the last year?

Strong and mutually supportive stakeholder

relationships are absolutely central to our

ambitions. We have performed well in this

regard – but we know that we can do even

better. To this end, we have further tightened

our already sharp focus on two key areas in

recent times. Firstly, around our customer

interactions, under the leadership of Jim

Koonmen we continue to roll-out our customer

team model, with teams that work more closely

with customers than ever before. This move

is already bearing fruit, and compared to 2024,

our annual customer satisfaction survey score

went further up from 86% to 88%, and our

scores have increased on all topics, for all

customers – indicating increased customer

satisfaction and willingness to work with us.

Secondly, under the leadership of Wayne Allan,

we have been driving a transformation around

the supply chain, to make sure we can work

strategically with all our suppliers – not just

a select few – on long-term targets around

technology, cost, quality and sustainability.

When it comes to our employees, input

from the most recent employee engagement

survey demonstrates a clear demand for us to

simplify our processes, encourage ownership

and create conditions where people can

achieve their full potential.

As with any company that grows rapidly,

we need to be mindful that the way we have

grown does not slow us down. The feedback

from our colleagues, our suppliers and our

customers shows that our ways of working

have, in some cases, become less agile.

Engineers in particular have expressed their

desire to focus their time on engineering,

without being hampered by slow process

flows, and restore the fast-moving culture

that has made us so successful.

We believe it is important to address these

issues in 2026 so that we are well prepared

for future growth and well positioned to

continue to deliver for our customers. As a

result, in January 2026 we announced our

intent to strengthen our focus on engineering

and innovation in critical areas of our

company through the streamlining of the

Technology and the IT organizations.

As our full-year 2025 financial results

demonstrate, we are choosing to make

these changes at a moment of strength

for the company. Improving our processes

and systems will allow us to innovate

more and innovate better, generating

further responsible growth for ASML

and our stakeholders.

I realize that, as a result of proposed changes

to the Technology and IT organization, some

roles – mainly at the leadership level – may

no longer be required. At the same time,

to retain our engineering capability, we will

create new engineering jobs to strengthen

existing technology projects and embark

on new ones to support our own and our

customers’ growth plans.

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In conversation with Christophe Fouquet (continued)

President, Chief Executive Officer and Chair of the Board of Management

While this will allow some of our impacted

colleagues to move to new roles, we have

to acknowledge that this could result in a net

reduction of 1,700 positions. We are

committed to acting responsibly – with care,

speed, transparency and fairness – and to

supporting our employees through this

change.

Q	How can ASML continue to<br><br>stand out as an attractive<br><br>employer for innovation talent?

Our culture – what we do, how we do it,

how we behave – can play a major role here.

First of all, this industry is still by far one of

the most attractive in the world, and I think

that a lot of people understand that ASML,

together with our partners, is working to

enable products and solutions that can solve

complex societal challenges. Secondly, we

are a vibrant, exciting home of innovation

where ambitious, talented people – and I

am not just talking about engineers but also

other disciplines – can be part of something

tremendously rewarding and make a real

difference to the world. Finally, we need to

continue to make ASML a great place to

work, by further improving our existing

facilities but also continuing to build state

of the art buildings for our employees. In 2025,

we opened a new and vibrant office in Korea

and formally inaugurated our new technical

training academy in Phoenix. We also

finalized our plan for our new Eindhoven

campus, and plan ground breaking in 2026

to secure our future in the region.

Q	How do you continue to drive<br><br>innovation at ASML?

Our guiding principle is to always ask

where we can add the most value and have

the greatest impact for our customers, both

today and in the future. Our core business of

holistic lithography remains extremely critical

for customers and therefore sits at the heart

of our innovation efforts.

However, there are also adjacent areas

where the skills and technologies we have

developed for holistic lithography can support

customers. For example, as Moore’s Law

continues, and as 2D shrink slows down,

3D integration challenges have become a

very important issue for our customers. As

a result, we have tasked the team to also

drive 3D integration. We saw an early result

of this focus in 2025, when we shipped the

first i-line system supporting advanced

packaging, the TWINSCAN XT:260.

Going forward, we believe the new partnership

with Mistral AI lays foundations that will allow

us to improve our products, our processes,

our efficiency and our performance.

Q	How do you see 2026 shaping<br><br>up, and what challenges do<br><br>you expect?

If you look at the last two years – at the

economy, at geopolitics, at some of the

transitions that we have seen in the industry

– it is clear that we have been living in a time

of uncertainty. But the flip side to uncertainty

is opportunity. If you can navigate uncertainty,

opportunity can unfold – and we believe

wide-ranging opportunities for our industry,

for society and for ASML are rooted in the

powerful shift to AI which we believe will

continue to benefit us in 2026 and beyond.

We believe the long-term prospects for ASML

and our broader industry are excellent especially

as AI presents both significant opportunities

and unique challenges for innovation.

We can attribute our success to our customer

dedication, engineering talent and collaborative

approach to the ecosystem. Our ability to

innovate and execute has generated substantial

benefits for our customers and suppliers, our

colleagues and our investors.

Of course, we value everyone working at

ASML and we regret having to lose any

Our success<br><br>will be built on<br><br>the passion,<br><br>talent and<br><br>determination<br><br>of our people.”
Christophe Fouquet
President, Chief Executive Officer and<br><br>Chair of the Board of Management

colleague as a result of the intended changes

to the Technology and IT organizations. The

success of ASML is built on the contributions

of everyone working here. While these

changes are never easy, I believe they are

necessary to allow ASML to remain as agile

and competitive as possible in a rapidly

evolving industry.

I would like to end by thanking all our people

across all our locations for their hard work

over the last year. I have been proud to lead

such inspiring teams, and I look forward

to working alongside them through the

opportunities and challenges that lie ahead.

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Our

business

14	Our holistic approach to lithography
18	Our products and services
22	Our marketplace
28	Our business strategy
29		Deepen customer trust
31		Extend our technology and holistic<br><br>product leadership
33		Strengthen ecosystem relationships
35		Create an exceptional workplace
37		Drive operational excellence
39		Deliver on ESG sustainability
41	Our business model
44	Engaged stakeholders

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Our holistic approach to lithography

Lithography – using light to print tiny, intricate patterns on silicon –

is fundamental to the mass production of microchips. It enables the

semiconductor industry to continually shrink transistor size and develop

novel chip architectures, packing more functionality into ever-smaller

chips and supporting the continuing evolution of Moore’s Law.

Moore’s Law and the evolution

of chipmaking

In 1965, Intel co-founder Gordon Moore

predicted that the number of transistors in

an integrated circuit (IC) would double every

year, later revising this to every two years.

‘Moore’s Law’, often regarded as a self-

fulfilling prophecy, set the pace for the

semiconductor industry. The expectation of

continual transistor doubling drove exponential

growth in computing power, reduced costs

and accelerated technological innovation.

Today, physical limitations make it more

challenging to shrink transistors further.

However, the industry continues to boost

performance using what Moore called

‘circuit and device cleverness’: innovative

chip designs, new materials, advanced

packaging and 3D integration. ASML’s

lithography products play a crucial role in

the affordable mass production of these

advanced designs that are enabling the

continuation of Moore’s Law and future

technological innovations.

Rayleigh criterion

Using the Rayleigh criterion to

drive innovation

As the semiconductor industry continues to

advance Moore’s Law, the ability to print ever-

Lambda (λ) is the wavelength

of the light source. The smaller

the wavelength, the smaller the

structures that can be printed.

smaller features is still critical. The resolution

of our lithography systems is fundamental for

shrinking the size of transistors on microchips

and enabling this progress.

The Rayleigh criterion formula, shown on

CD is the critical dimension,

or resolution. It represents the

smallest structures the lithography

system can print.

the right, illustrates the technical foundation

for resolution in lithography. For over 40

years, we have improved resolution (critical

dimension) by two orders of magnitude,

through advances in wavelength, numerical

aperture (NA) and k1 (a factor relating to

optical and process optimizations).

NA is the numerical

aperture, which describes

how well a system’s

optics gather and focus

light. Larger NA lenses

or mirrors can print

smaller structures.

k1 is a factor relating

to optical and process

optimizations.

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Our holistic approach to lithography (continued)

Our integrated lithography solutions enable chipmakers to achieve greater control,

precision, efficiency and value throughout the manufacturing process.

The chipmaking process
Microchip manufacturing is a complex, multi-step<br><br>process that takes place in highly specialized<br><br>semiconductor fabrication plants, known as ‘fabs’.<br><br>Transforming a silicon wafer into finished chips can<br><br>take up to six months and involves hundreds of tightly<br><br>controlled steps and quality checks. Lithography is<br><br>one of the most critical steps in the mass production<br><br>of microchips. It is the only step where each chip on<br><br>a wafer is individually processed, which means we<br><br>can maximize yield and performance by optimizing<br><br>patterning chip-by-chip.<br><br>The diagram on the right illustrates the key steps<br><br>of the manufacturing journey. As chip designs<br><br>become more complex and feature sizes continue<br><br>to shrink, the challenges of manufacturing increase.<br><br>That’s why a holistic approach to lithography is<br><br>essential. It enables greater precision, efficiency<br><br>and value throughout the process.
Steps in the chip manufacturing process
Together, the following steps create a single layer<br><br>of a microchip. To build a complete device, these<br><br>steps are repeated for each additional layer.<br><br>1.Deposition: Different materials – conductors,<br><br>insulating films and semiconductors – are<br><br>deposited onto a silicon wafer.<br><br>2.Photoresist coating: The wafer is coated with<br><br>a light-sensitive layer called photoresist.<br><br>3.Lithography: The microchip pattern is printed<br><br>by using light to project it onto the wafer.<br><br>4.Baking and developing: The wafer is baked and<br><br>developed to fix the pattern in the photoresist.<br><br>5.Etching: Reactive gases are used to etch away<br><br>excess material, leaving the circuit pattern behind.<br><br>6. Ion implantation: The wafer may be bombarded<br><br>with ions to tune the semiconductor’s properties.<br><br>7. Photoresist removal: The remaining photoresist<br><br>is removed.

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Our holistic approach to lithography (continued)

The role of our lithography systems

Microchips are made by layering complex,

patterns that build transistors, circuitry and

interconnects – a process to which ASML’s

lithography systems are central. A lithography1

system essentially projects light through or

from a blueprint of a pattern (known as a

‘mask’ or ‘reticle’), shrinking and focusing it

onto a photosensitive silicon wafer. Once a

layer of a chip has been printed, the system

moves the wafer slightly and prints another.

Lithography drives shrink by determining the

smallest feature sizes that can be printed on a

chip – and therefore the number of transistors

and the performance. To do so, it has to

use shorter wavelengths of light and larger

numerical apertures, as well as other process

and hardware optimization and advanced

techniques such as multiple patterning.

As patterns gets smaller and become

increasingly complex, chipmakers face

unprecedented engineering, material,

constructional and manufacturing challenges.

Many sources of variation and error can

hinder the lithography process and must be

controlled to ensure chips are produced with

the required precision, in high volumes, as

fast as possible and at the lowest cost.

Navigating challenges in

advanced lithography

To help our customers understand and

correct potential variations or errors, we

provide support and solutions at every

stage of the chipmaking process – from

early design and development to high-

volume production.

We take a holistic, integrated approach

to lithography that enables customers to

achieve their highest yields and best chip

performance at the lowest cost per transistor.

Our approach helps minimize any deviation

between the intended and printed features

of a microchip layout (so-called ‘edge

placement error’ – see box) by optimizing

the lithography system’s performance and

stability. It enables chipmakers to increase

the number of good wafers per day to

minimize costs and keep the scaling of

microchips affordable.

What is edge placement error (EPE)?
EPE measures the difference between<br><br>the intended and the printed features of<br><br>a microchip. It combines overlay errors<br><br>(misalignment between layers) and<br><br>critical dimension variations (feature-<br><br>width deviations).<br><br>Take, for example, a line with right and<br><br>left edges. On a microchip, this line and<br><br>its edges must be precise and placed in<br><br>exact locations – any deviation, no matter<br><br>how slight, can compromise functionality<br><br>and cause the entire chip to fail.

What is edge placement error (EPE)?

EPE measures the difference between the intended and the printed features of a microchip. It combines overlay errors (misalignment between layers) and critical dimension variations (feature- width deviations). Take, for example, a line with right and left edges. On a microchip, this line and its edges must be precise and placed in exact locations – any deviation, no matter how slight, can compromise functionality and cause the entire chip to fail.

1.In semiconductor manufacturing, ‘lithography’ typically refers to photolithography – the process of using light to transfer a pattern onto a substrate.

Holistic approach to lithography_V3.jpg

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Our holistic approach to lithography (continued)

Maximizing the process window
Our integrated lithography solutions<br><br>work to maximize the process window<br><br>– the collection of acceptable ranges<br><br>of process parameters that allow a<br><br>microchip to be manufactured and<br><br>meet desired specifications.
By incorporating computational lithography,<br><br>metrology and inspection, ASML’s lithography<br><br>portfolio enables customers to maximize this window<br><br>– keeping lithography systems stable in a high-volume<br><br>manufacturing setting and leading to a higher yield<br><br>with more good wafers per day. Lithography is the<br><br>only step in the microchip manufacturing process in<br><br>which in-line adjustments can be made chip by chip<br><br>to optimize performance.<br><br>Our lithography systems are a hybrid of high-tech<br><br>hardware and advanced software. Without the system<br><br>and process control software we develop, it would be<br><br>impossible for our lithography systems to manufacture<br><br>the ever-smaller features in advanced microchips.<br><br>Our software products enable automated control<br><br>loops to maintain optimal operation of lithography<br><br>processes and therefore maximize yield.

Maximizing the process window

Our integrated lithography solutions work to maximize the process window – the collection of acceptable ranges of process parameters that allow a microchip to be manufactured and meet desired specifications.

By incorporating computational lithography, metrology and inspection, ASML’s lithography portfolio enables customers to maximize this window – keeping lithography systems stable in a high-volume manufacturing setting and leading to a higher yield with more good wafers per day. Lithography is the only step in the microchip manufacturing process in which in-line adjustments can be made chip by chip to optimize performance. Our lithography systems are a hybrid of high-tech hardware and advanced software. Without the system and process control software we develop, it would be impossible for our lithography systems to manufacture the ever-smaller features in advanced microchips. Our software products enable automated control loops to maintain optimal operation of lithography processes and therefore maximize yield.

Computational lithography

uses models and algorithms

to predict and optimize

the process window of

our lithography systems

by calculating the best

settings for specific

applications. This occurs

during the research and

development phase, prior to

high-volume manufacturing.

Our suite of optical and e-beam

wafer metrology and inspection

products measure features on

the wafers to assess pattern

quality which helps control the

process window and maximize

lithography performance.

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Our products and services

Our comprehensive product portfolio is aligned to our customers’ roadmaps, delivering holistic

lithography solutions in support of all applications, from advanced to mainstream nodes.

Lithography systems

Extreme ultraviolet (EUV)

lithography systems

Our EUV lithography systems make it

possible to print the smallest features on

microchips at the highest density, and are

used for the most intricate, critical layers on

the most advanced microchips. Compared to

complex multiple-patterning strategies using

deep ultraviolet (DUV) immersion systems,

EUV systems help simplify our customers’

manufacturing processes. Therefore, we

collaborate closely with customers to lower

manufacturing costs by shifting from complex

multi-patterning to simpler single patterning

using EUV lithography, a method that requires

only one exposure per layer. This approach

reduces the number of masks and process

steps, while also improving yield and scalability

for advanced Logic and Memory nodes.

ASML is currently the world’s only

manufacturer of EUV lithography systems.

Our EUV product roadmap is intended to

drive affordable scaling to 2030 and beyond.

TWINSCAN EXE platform (EUV 0.55 NA)

Our TWINSCAN EXE platform, offering a high

numerical aperture (NA) EUV, is an evolution

in EUV technology. It enables customers to

extend their shrink roadmap and minimize

double- or triple-patterning. This leads to

reduced process complexity, lower risk of

defects and shorter cycle times. In addition,

it saves valuable fab space by requiring

fewer systems overall.

The EXE platform has been designed

to maximize commonality with the NXE

platform, to drive cost reduction, speed

up the development of new solutions and

optimize future reuse. We aim to extend this

commonality in our future systems, with the

ultimate goal of having a common platform

early in the next decade.

We expect our TWINSCAN EXE platform to

start supporting high-volume manufacturing

in 2027.

Latest: Success with our TWINSCAN<br><br>EXE:5200B<br><br>In early April 2025, we shipped our<br><br>first TWINSCAN EXE:5200B system<br><br>– the successor to the TWINSCAN<br><br>EXE:5000 – ready to be used in high-<br><br>volume manufacturing. At 175 wafers<br><br>per hour, it offers 60% higher productivity<br><br>compared to the TWINSCAN EXE:5000<br><br>– thanks to an improved EUV light source<br><br>that delivers increased power at the<br><br>wafer level, translating to a higher system<br><br>throughput. The TWINSCAN EXE:5200B<br><br>also features improved projection optics,<br><br>developed in cooperation with our strategic<br><br>partner Carl Zeiss SMT, that maximize<br><br>imaging and overlay (layer-to-layer<br><br>alignment) performance.
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Our products and services (continued)

Lithography systems (continued)

TWINSCAN NXE platform (EUV 0.33 NA)

Our TWINSCAN NXE platform was first

introduced in 2013 and is now widely

adopted in high-volume manufacturing

by our major customers.

at asml.com

Latest: TWINSCAN NXE:3800E reaches full productivity specification In 2025, we shipped TWINSCAN NXE:3800E systems to our customers at full specification, which includes 220 wafers-per-hour throughput – a 37% improvement compared to the TWINSCAN NXE:3600D – a higher-power light source, new wafer handler, faster wafer stages and high-power imaging control functionality. We completed field upgrades to bring systems that were already in customer fabs to the same specifications. The rollout across the installed base remains on track.

Deep ultraviolet (DUV)

lithography systems

DUV lithography systems are the workhorses

of the industry, producing the majority of

layers in microchips. Supporting numerous

market segments, our immersion and dry

lithography systems use a range of light

sources to offer all wavelengths currently used

in the semiconductor industry – argon fluoride

(ArF) lasers for 193 nm wavelength, krypton

fluoride (KrF) lasers for 248 nm and mercury

vapor discharge lamps (i-line) for 365 nm.

Our systems lead the industry in productivity,

imaging and overlay performance to help

manufacture a broad range of semiconductor

nodes and technologies and support the

industry’s cost- and energy-efficient scaling.

Immersion systems (TWINSCAN

NXTi platform)

Argon fluoride (ArF) immersion lithography

maintains a thin layer of water between the

lens and the wafer, increasing NA to improve

resolution and to support further shrink. Our

immersion systems are suitable for both

single-exposure and multiple-patterning

lithography, and can be used in seamless

combination with EUV systems to print

different layers on the same chip.

Dry systems (TWINSCAN NXT

and TWINSCAN XT platform)

Not every layer on a chip needs to be

produced using the latest immersion or

EUV lithography systems. While some

more complicated layers require advanced

lithography systems, others can be printed

using more mature technology, such as dry

lithography systems that continue to evolve

through innovation.

With our dry systems product portfolio, we

aim to provide our customers with a range

of cost-effective solutions that meet the high

demand for less complex chips.

at asml.com

Latest: TWINSCAN XT:260 The TWINSCAN XT:260, the latest addition to our i-line portfolio, combines high throughput with the imaging accuracy of a scanner. It offers up to four times higher productivity compared to existing solutions, making it a cost-effective technology to support our customers in 3D integration applications, including advanced packaging, as well as other emerging technologies, such as image sensors, displays and photonics. Contributing to that high throughput is a new high-transmission lens with 2x, rather than 4x, reduction that enables the system to print on a larger area of a wafer in a single exposure. The XT:260 is unique in that it combines large-area patterning with a scanner exposure approach that enables better imaging and overlay correction than a stepper. The system integrates easily with other ASML systems in our customers’ fabs, for fast, seamless adoption into production.

Metrology and inspection systems

Refurbished systems

ASML systems have a very long operational

lifetime that often exceeds their role for the

initial customer – approximately 95% of the

systems we have sold in the last 30 years

are still in use. Many customers are able to

generate value by selling systems they

no longer require.

To support this sustainable product use

and help to ensure used systems still uphold

and deliver the quality ASML stands for,

we are actively involved in refurbishing and

upgrading our older lithography systems

to extend their lives – and offer associated

services and support.

Environmental – Circular economy – Systems

The smaller a chip’s features, the less

room there is for error when it comes to

patterning. At the same time, the increasingly

3D architectures of today’s chips make

accurate patterning all the more challenging.

That’s why our metrology and inspection

systems – which minimize EPE, optimize

overlay and detect defects – are critical.

Our metrology and inspection systems

enable chipmakers to accurately measure

the printed patterns on wafers to make

sure they align with the intended designs.

Our comprehensive portfolio facilitates

patterning optimization at every stage of

the manufacturing process, from research

and development to mass production.

These systems are a key element of our

holistic approach to lithography. They deliver

data with the required speed and accuracy

for high-volume manufacturing, enabling

our process control software solutions to

ASML_Strat-report_Our-business_Our-products-and-services-Cont_Img_v1.jpg

implement automated feedback control

loops. This optimizes the lithography system

settings for each exposure to minimize

EPE, broadening the process window to

maximize yield and best performance.

Optical metrology (YieldStar)

Our YieldStar optical metrology systems

use light to monitor patterning performance

at the speed of high-volume manufacturing.

They measure overlay and provide real-time

feedback to lithography systems so they

can make wafer-by-wafer adjustments.

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Our products and services (continued)

Metrology and inspection systems (continued)

We offer two categories of systems for use

before and after etching. Pre-etch metrology

measures the overlay and focus of the

lithography system based on the pattern

printed on the photoresist. Post-etch

metrology measures the overlay and CD

of the final patterns formed on the wafer.

Latest: YieldStar 550 and YieldStar 1390 The YieldStar 500 has achieved broad acceptance among our leading customers, providing advanced pre-etch overlay control with improved cost of technology and performance in matching and accuracy. Building on this success, the YieldStar 550 is designed to further improve matching and accuracy while maintaining productivity – even when utilizing multi-wavelength recipes – to ensure process robustness for overlay. Early-access packages have been delivered to customers for initial qualification on next-generation nodes, with phase 1 of the product scheduled for release in 2026. The first YieldStar 1390 was shipped in 2025, featuring a higher-power light source and advanced software to accelerate recipe setup. With increased throughput from faster optical metrology, the YieldStar 1390 is positioned to drive broader customer adoption for after-etch overlay control by delivering superior performance and cost effectiveness.

E-beam metrology and inspection (HMI)

Our HMI e-beam systems use an electron

beam to locate and analyze individual chip

defects – errors that would affect the chip’s

performance – among millions of printed

patterns. It is a slower method of detection,

but offers very high resolution.

As chip features get smaller, tiny defects

are more and more likely to cause problems.

By using high-resolution measurements from

our e-beam inspection systems to adjust a

lithography system’s settings, chipmakers can

minimize defects and maximize performance.

To mitigate the traditionally slower speed of

electron-beam inspection systems, we have

developed a multiple e-beam (multibeam)

inspection system roadmap. Instead of a

single e-beam, multibeam makes use of

multiple electron beams within a single

system. This harnesses the high resolution,

but at much higher speeds.

systems at asml.com

Latest: HMI eScan 1100 The HMI eScan1100 is our first multibeam inspection system featuring 25 beams for large wafer coverage and high throughput. It offers industry-leading application coverage for electrical and patterning defects, delivering 10 times higher throughput than single-beam systems for advanced Logic and DRAM. This capability enables full wafer fingerprint capture (scanning multiple microchips across the wafer to create a detailed defect map) within acceptable inspection times and accelerates yield learning by moving insights forward up to one and a half months compared to end-of-line electrical probe tests. Within the context of defect type and layer, the eScan1100 speeds up root-cause analysis beyond probe-based methods. Industry-wide adoption of voltage contrast for product monitoring is driving strong demand for multibeam inspection systems.

System and process control software

Taking advantage of the flexibility of

our lithography systems, our system

and process control software

products enable automated control

loops to maintain optimal operation

of lithography processes and

maximize yield.

Using powerful algorithms, they analyze

metrology and inspection data and calculate

necessary corrections for each individual

exposure – providing a feedback loop to

the lithography system to minimize EPE.

Our virtual computing platform

(VCP) brings together all the data from

lithography and metrology systems,

enabling the latest ASML applications

and enhancing transparency and

collaboration. VCP manages peak

loads and handles ever-increasing data

speeds and volume with more computing

power and storage, in a modern and

resilient software architecture.

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Our products and services (continued)

Computational lithography

During lithography, diffraction of the light

and various physical and chemical effects

distort the image the machine is trying to

print. Think of this like trying to draw a fine

line with a broad watercolor paint brush –

it smudges in many places.

Using computational lithography, we can

predict and enhance the process window

of our lithography systems by calculating the

optimal settings for each specific application.

During the R&D phase, our customers rely

on computational lithography to optimize

the imaging conditions of our systems

and develop the recipes to optimize reticle

patterns to achieve the best pattern fidelity.

This ensures robust, manufacturable designs

that deliver high yields.

Insights from computational lithography

solutions are also increasingly used to

guide metrology and inspection, increasing

throughput and enabling more precise

process monitoring and control in high-

volume manufacturing.

These solutions are based on accurate

computer simulations of the lithography

system and process, representing a wide

variety of physical and chemical effects –

enabling us to predict how a designed

pattern will appear when printed on a wafer.

Managing our installed base

We are increasingly using machine-learning

techniques to further enhance the accuracy

of models and reduce the computational time

and cost. Our roadmap aims to apply more

powerful algorithms with higher-order

corrections, to enable our customers to

continue improving EPE performance.

solutions at asml.com

Latest: Enhanced computational lithography solutions for High NA EUV In 2025, we enhanced our solutions for High NA EUV with source, mask and wavefront co-optimization; model capability and accuracy improvements; optical proximity correction (OPC); and curvilinear OPC performance enhancements. Machine learning and AI continue to enable these advanced techniques by delivering accuracy and speed.

Our installed base continues

to grow, comprising not only

new systems but also refurbished

ones with new owners in new

markets and applications.

To provide the best value proposition,

we offer an extensive portfolio to manage

our installed base, including a wide range

of service and upgrade options designed

to improve throughput, patterning

performance and overlay. Our field upgrade

packages enable customers to optimize

their cost of ownership over a system’s

lifetime by upgrading older systems to

improved models.

Extending the lifetime of our PAS systems

Our PAS 5500 lithography system,

introduced in the early 1990s,

played a pivotal role in ASML’s

rise as a global leader

in lithography.

Despite their age, nearly all of these

systems remain in active use, particularly

in the mainstream ‘More than Moore’

semiconductor market. While Moore’s Law

focuses on continual shrink of transistors,

‘More than Moore’ emphasizes adding

diverse functionalities to the chips without

necessarily reducing size. The ‘More than

Moore’ market therefore prioritizes mature,

cost-effective technologies for applications

like automotive, consumer electronics and

data centers. In fact, around two-thirds of

ASML_Strat-report_Our-business_Our-products-and-services-Cont_Img-2_v1.jpg

components in devices such as the latest

smartphones are produced using

these systems.

To support sustainability and extend the

lifetime of the PAS 5500 until at least 2035,

we launched the PAS Life Time Extension

(PAS-LTE) program around 10 years ago.

This initiative addresses challenges such

as obsolete electronics, limited end-of-life

support from suppliers and loss of domain

knowledge as experienced engineers retire.

The program involves redesigning critical

electronic components, leveraging modern

technologies (such as 3D printing for

prototyping) and enhancing commonality to

reduce costs and streamline supply chains.

Mechanical and optical parts are sustained

through ongoing relationships with suppliers

and careful end-of-life management.

Our approach emphasizes reuse and upgrade

of existing systems, rather than replacement,

to align with sustainability goals and customer

demands for long-term support. Through

continuous innovation, documentation

recovery, reverse engineering and extensive

testing, we aim to ensure that new and old

components function seamlessly together,

maintaining system performance while

minimizing waste. These strategies help

us serve the mainstream semiconductor

market and support sustainability of this

market by extending system lifetime and

managing resources efficiently.

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Our marketplace

The macro headlines in 2025 were dominated by tariff dynamics, resulting

in a downward revision of the 2025 global gross domestic product (GDP)

forecast in April. As the year progressed, the outlook was adjusted upward,

returning to the level prior to the tariff announcements. Global GDP

growth was 3.2%1 for 2025, slightly below 2024 GDP growth. As in 2024,

geopolitical volatility remained high, and AI dominated the news and

spending in the semiconductor ecosystem.

The semiconductor market again saw strong

double-digit growth with the same drivers

as last year: advanced Logic and DRAM for

AI continued to lead. The NAND market did

have a short correction but later in the year

strongly recovered, again driven by AI

demand by hyperscalers.

The lithography market showed double-digit

growth where China remained stronger than

initially expected, not only for lithography but

for the full wafer fab equipment market.

We anticipate continued growth in the

semiconductor market driven by strong

demand for AI logic and memory products,

along with high pricing resulting from supply-

demand imbalances. This is expected to

drive demand for growth in the equipment

market. Factors that may impact our business

– as explained in more detail over the next

few pages – include:

1.Macroeconomic and<br><br>geopolitical trends
2.Megatrends
3.Semiconductor industry<br><br>market developments
4.The forces impacting<br><br>our strategy

1 Source: IMF World Economic Outlook, October 2025

| 1. Macroeconomic and geopolitical trends | | --- || Economic outlook | | --- |

What’s happening

At the start of the year global GDP

growth for 2025 was expected to be 3.3%,

slightly above the 2024 growth of 3.2%.

Driven by the dynamic geopolitical

environment (including tariff negotiations),

the macroeconomic outlook fluctuated

throughout the year. The latest forecast

suggests growth of 3.2%1, while 2024

growth has been revised up to 3.3%.

A slowdown in GDP growth is typically

not a tailwind for a strong semiconductor

cycle. The very high growth of demand

for AI chips, however, drove the overall

semiconductor market in 2025 to double-

digit growth. Toward the end of the year,

both DRAM and NAND demand increasingly

outstripped supply, leading to a strong

pricing environment and a good basis for

further capacity expansion in 2026.

Other markets that drive leading-edge

semiconductors such as smartphones and

PCs saw moderate growth as expected.

The introduction of edge AI on these

devices will drive additional memory

content. The industrial and automotive

markets started to recover but at a slow

pace. The current global GDP outlook

for 2026 points to a continued gradual

recovery of these end markets.

Global geopolitics – technological<br><br>and AI sovereignty

What it means for ASML

Our EUV business saw growth in both EUV

0.55 NA and EUV 0.33 NA. Growth for EUV

0.33 NA was driven by the strong demand in

advanced Logic and DRAM in support of the

build out of the AI infrastructure. For EUV

0.55 NA, we recognized revenue for four

systems that were shipped to customers’

R&D facilities.

For non-EUV, sales were at a similar level as

in 2024. Sales were primarily driven by our

China mainstream business.

We are working closely with our customers

and suppliers to optimize our output

capability and manage the risks.

Our macroeconomic and geopolitical risks

are part of our risk management process.

manage risk

What’s happening

Semiconductors are crucial to the

economic and strategic development of

countries and regions – and the importance

of the industry is only likely to grow. Many

governments are pushing for ‘technological

sovereignty’ to ensure security of supply,

resilience and technological leadership in

semiconductor technologies and applications

– fueling capital expenditure.

Countries and regions are also prioritizing

AI sovereignty – the ability to independently

develop, deploy and govern AI technologies.

This drives the need to develop and train

local AI models which require additional data

center hardware with leading-edge silicon.

What it means for ASML

As governments increasingly see

semiconductor manufacturing as strategically

significant, chips acts are incentivizing our

customers to build manufacturing facilities

in the US, Europe and Asia. We share our

views with governments, and we work

closely with our customers to build the

required ecosystem in these new regions –

while retaining our focus on supporting

established regions. External factors such

as the timing of subsidies and the risk of

restrictions make forecasting market

demand less predictable.

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Our marketplace (continued)

b<br><br>r	1. Macroeconomic and geopolitical trends (continued)
	Global geopolitics – export controls

What’s happening

Our business is subject to global export

control laws and regulations. Key

developments in 2025 were the following:

•NL Export Controls: Effective January 15,

2025, the Netherlands expanded its

export control regulations to include an

additional group of semiconductor

manufacturing equipment, primarily

certain metrology and inspection

systems. These items now require an

export license when shipped abroad.

•US Export Controls: On October 1, 2025,

the US Department of Commerce

introduced the Affiliates Rule, expanding

Entity List restrictions to include entities

that are at least 50% owned by listed

parties. While this rule would have

affected a limited number of our business

partners, its implementation has been

suspended for one year, until November

10, 2026, as part of a trade agreement

with China. As a result, the rule currently

has no impact on our business operations.

•China’s Rare Earth Controls: In 2025,

China introduced new rules: it restricted

exports of certain rare earth elements,

limited technology sharing for processing

them and extended these rules to

products made abroad if they include

any rare earth elements or technology.

We began preparing for these restrictions

in early 2024, with a focus on magnets used

in our systems. A dedicated team continues

to monitor regulatory developments and

supplier risks, supported by mitigation plans

already in place. To date, no material impact

on customers has been observed. As part

of a trade agreement with the US, China

has suspended its export restrictions on rare

earth materials for one year, until November

10, 2026. Existing risk mitigation measures

for rare earth materials will remain in place.

•EU Export Controls: In November 2025,

the European Union incorporated certain

Dutch national controls into the EU Control

List, extending to all EU member states

a license requirement for specific

semiconductor manufacturing equipment.

This includes advanced systems such as

our DUV immersion lithography systems

when exported outside the EU. For ASML

this did not mean a change as these

products already required an export

license from the Netherlands.

What it means for ASML

Changes in export controls may have a

material impact on our business for example

on the sales volume, mix and timing.

We are committed to complying with

all applicable laws and regulations,

including export control legislation in

the countries where we operate, while

continuing to develop our technology

and serve customers.

We aim to work with global customers to

deliver lithography and metrology systems

not impacted by export control restrictions

or sanctions. We share relevant dynamics

with governments to foster understanding

of potential impacts of current and

future measures.

We require every ASML employee to follow

policies designed to ensure compliance and

prevent unauthorized transactions. We have

implemented controls for compliance with

export control and sanctions requirements

and remain committed to enhancing and

making our compliance framework more

intuitive and easier to navigate.

2. Megatrends
Key megatrends impacting the semiconductor marketplace
	Connected<br><br>world
---	---
•Artificial intelligence<br><br>•Hyperconnectivity<br><br>•Cloud infrastructure<br><br>•Internet of Things
	Climate change<br><br>and resource scarcity
•Energy transition<br><br>•Electrification and smart mobility<br><br>•Agricultural innovation<br><br>•Smarter use of limited resources
	Social and<br><br>economic shifts
•Working and learning remotely<br><br>•Healthcare and medical tech<br><br>•Technological and AI sovereignty<br><br>•Automation

The world is changing fast, and

semiconductors are a key enabler to

help solve some of humanity's toughest

challenges. In 2025, we continued to see

very strong growth in AI, enabled by leading-

edge semiconductor solutions, both in

advanced Logic and AI-related DRAM.

AI requires leading-edge, high-performance

processor chips and a significant increase

in DRAM chips compared to traditional

compute architectures. It also stimulates

the mainstream market, as AI requires large

amounts of data collected via sensors

which can be used to further drive robotics

and workflow automation.

The continuing convergence of wireless

communication, telecoms, media and cloud

technology via connected devices is driving

demand for advanced semiconductors

across the globe. Growing populations,

urbanization, the energy transition and

electrification to support smart mobility

are increasing demand for advanced

electronic devices.

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Our marketplace (continued)

| 2. Megatrends (continued) | | --- || Connected world | | --- |

With the Internet of Things (IoT),

smart, connected networks seamlessly

communicate over powerful 5G

networks – unleashing the power of

unprecedented data volumes better

and faster than ever. In combination

with AI, this provides people with

more innovative functionalities and

applications, improves human-to-

machine interactions and enhances

data management and analytics.

Artificial intelligence

AI and edge computing are converging

to create powerful, localized intelligence

– enabling faster and more efficient data

processing. Edge computing brings

computation and storage closer to data

sources, while AI algorithms analyze that

data on-site, reducing latency and reliance

on cloud-based processing. This integration

is revolutionizing various industries by

enabling real-time insights leading to

improved decision-making, increasing

productivity and enhanced automation.

Hyperconnectivity

5G hyperconnectivity connects everyone

and everything globally, including machines,

objects and devices. The demand for

bandwidth is rising due to person-to-person,

person-to-machine and machine-to-machine

communication, driven by diverse and

complex new applications and devices.

Cloud infrastructure

To enable cloud computing – the on-

demand availability of computer system

resources, especially data storage and

computing power – a related infrastructure

is required. This includes hardware,

software, storage and network resources.

Internet of Things (IoT)

Semiconductors are increasingly

present in everyday devices, enhancing

their capabilities by connecting them to

the internet. AI boosts the value of these

devices by enabling them to capture data

to improve their functionality – and to

benefit other connected devices, too.

Climate change and resource scarcity

What it means for ASML

Moore’s Law is the driving force behind

the semiconductor industry and the

transition toward ubiquitous computing.

This shift is increasingly powered by AI,

which constantly evolves and expands its

capabilities. AI applications generate vast

amounts of data, which in turn fuel the

development of new algorithms – driving

further innovation in AI applications and

creating a continuous cycle of growth

and improvement that is expected to

significantly boost the growth of the

semiconductor industry. However, for

AI to really come to life in the next few

years, we need to reduce its cost and

energy consumption.

With an urgent collective response

needed to limit global warming to

1.5°C, climate change is a crucial

matter for governments, companies

and individuals worldwide.

Energy transition

The shift to renewables is helping

deliver the clean, affordable energy the

world needs to counter climate change.

Semiconductors help harness, convert,

transfer and store energy from solar and

wind as electricity, ensuring power grids

are responsive and robust. They are

essential in smart (home) devices and

play an important role in reducing overall

energy consumption.

Electrification and smart mobility

The market for automotive semiconductors

is rapidly evolving due to trends such as

electrification and autonomous driving. The

automotive industry is in a period of rapid

change due to environmental and safety

requirements in combination with new

innovations that enable change. The move

from combustion engines to electric engines

is a major driver for mainstream semiconductor

products like power electronics. The trend

toward autonomous driving is fueling both

advanced semiconductor content in the

car and mainstream semiconductors via

the need for vision and other sensors.

Globally, particularly in urban areas,

people are expected to shift away from

owning expensive and environmentally

harmful vehicles. They are expected to

increasingly prefer car-sharing, ride-

sharing, ride-hailing, micro-mobility (using

small, low-speed, human- or electric-

powered transportation devices) and

micro-transit (on-demand shared private

or semi-public transport) options.

Semiconductors enable the mobile apps

that support this move to smart mobility.

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Our marketplace (continued)

| 2. Megatrends (continued) | | --- || Climate change and resource scarcity (continued) | | --- |

Agricultural innovation

Remote farmland, especially in emerging

economies, faces climate change challenges.

With growing access to mobile devices,

local farmers use smartphones and smart

sensors to enhance their agricultural

practices. This leads to better crops and

more sustainable food security – enabled

by smaller, more affordable microchips.

Smarter use of limited resources

The semiconductor industry can also

play an important role by reducing its

own climate impacts. The semiconductor

manufacturing process uses significant

amounts of energy and water, and driving

Moore’s Law to increase computing power

and storage capacity fuels demand for these

vital resources. To improve the industry’s

energy and water resource efficiency,

innovative architectures will be necessary.

Furthermore, through the adoption of a

circular economy that emphasizes material

recovery, recycling and sustainable design,

the industry seeks to reduce waste and

extend product lifecycles.

Social and economic shifts

What it means for ASML

Semiconductors play an important role in

addressing climate change across various

sectors. In the automotive industry, a shift

toward electric vehicles and autonomous

driving is expected to significantly increase

the number of semiconductor components

in cars. Additionally, the integration of

digital technologies to support the energy

transition and agricultural innovations relies

on semiconductor solutions to enable smart

grids and enhance agricultural practices.

With the rapid rise of AI, energy consumption

is becoming a critical concern, as AI

applications often require vast computing

resources and thus consume substantial

amounts of energy. ASML’s advanced

lithography systems offer a pathway to

greater energy efficiency for semiconductors.

Furthermore, by advancing our EUV

productivity roadmap, we help customers

simplify complex multiple-patterning layers

into a single exposure – reducing resource

consumption in the semiconductor

manufacturing process.

We aim to transition from a linear to more

circular business model to minimize the

social and environmental impacts of our

operations worldwide.

Environmental

Digital technologies are driving

transformative change. They create

new opportunities for a more prosperous

future, but at the same time pose

new challenges.

Working and learning remotely

In recent years remote and hybrid working

and learning have become increasingly

prevalent – and the advantages extend

beyond immediate pandemic-related needs.

They promote sustainability by reducing

commuting and lowering carbon footprints,

and contribute to economic resilience

– providing the capacity for continuity

in education and business operations

during unforeseen disruptions.

Healthcare and medical technology

Predictive analysis of health data from

multiple sources, combined with machine

learning and AI, is being harnessed to

improve healthcare services and patient

outcomes. Semiconductor technology has

allowed the creation of innovative products

that can effectively detect, diagnose and

treat various medical conditions.

Automation

A new generation of lightweight robots

connected to a wide network and fitted with

smart sensors enable humans and machines

to safely and efficiently work side by side,

supported by AI. In addition, smart industry

devices use real-time data analytics and

machine-to-machine sensors to optimize

processes, predict bottlenecks, and

prevent errors and injuries.

What it means for ASML

The ongoing digitalization of various

sectors such as healthcare and

manufacturing keeps on driving the

need for semiconductors. The integration

of digital technologies in these industries

requires robust semiconductor solutions

to enable efficient data processing,

real-time analytics and connectivity.

Our-Marketplace(cont)_Logic-and-Marketplace_Pg25_v5.jpg

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Our marketplace (continued)

3. Semiconductor industry market developments

Semiconductor technology plays a crucial

role in shaping the interconnected and

intelligent network future – and we believe

end markets will continue to grow. The

industry’s historical market compound

annual growth rate (CAGR) from 2014 to

2024 was 7%. In 2024, almost one trillion

chips were shipped around the world,

feeding a $631 billion industry (data source:

WSTS). In 2025, the semiconductor market

continued to be driven by strong demand

for AI servers, which exceeded supply,

resulting in a strong pricing environment for

both Logic and DRAM. PC and smartphone

market demand went up by single digits,

while the industrial and automotive chip

markets started to slowly recover.

Generative AI

Generative AI remained a key demand

driver in 2025, resulting in strong demand

for graphics processing unit (GPU) chips

(Logic) and high-bandwidth memory (HBM)

among our customers – and both products

are growing fast. This is expected to

continue. The cost and energy consumption

of transferring data between current

Memory and Logic architectures is high,

so we expect AI applications to integrate

DRAM and Logic in new architectures.

Wafer bonding

Wafer bonding is a rising trend in chip

manufacturing that enables the fusion of

separate wafers – such as Logic and Memory

(see box) – into a single, high-performance

stack. This technique supports 3D integration

and heterogeneous materials, allowing for

more compact and efficient microchips.

It improves bandwidth, reduces latency

and enhances energy efficiency, making it

ideal for AI, mobile and high-performance

computing applications. And, as traditional

approaches to scaling reach physical limits,

wafer bonding offers a path forward by

combining diverse technologies at the

wafer level. Its growing adoption reflects

the industry’s push for advanced packaging

and integrated solutions in next-generation

electronics. Our lithography systems in

combination with metrology and inspection

solutions, are foundational to enabling the

precision required for bonded wafers.

Market outlook

At our 2024 Investor Day, we communicated

an expected semiconductor market growth

of a 9% CAGR between 2025-2030, projected

to surpass $1 trillion by 2030. We currently

observe an even stronger than initially projected

ramp up of AI, which is driving demand both

in advanced Logic and DRAM. This resulted in

semiconductor market growth of more than

20% in 2025 and created a supply-demand

imbalance as the manufacturing capacity

additions following the severe Memory market

correction in 2023 have been moderate. At

the end of 2025, prices of Memory increased

to levels not seen in at least a decade. We

believe this combination of high demand and

high prices positions the semiconductor market

for double digit revenue growth in 2026.

For the 2025–2030 timeframe, we continue to

expect a global annual wafer capacity growth

of 780,000 wafer starts per month per year

on average. It is also expected that wafer

capacity additions through 2030 will be more

weighted toward advanced Logic (nodes ≤7

nm) and DRAM, which is required to support

AI-related applications, and less toward

NAND and mainstream wafers. We believe

this change in wafer mix can be favorable for

ASML, given that advanced Logic and

DRAM are more lithography-intensive.

Logic and Memory markets explained

The semiconductor market can be broadly

divided into two segments based on the

types of chips they produce: the Logic

market and the Memory market. The largest

semiconductor manufacturers serve both,

producing chips in dedicated Logic

or Memory fabs.

Logic chips are processors, such as central

processing units (CPUs) and GPUs – the

‘brains’ of electronic devices, processing

input and output results. They are produced

by two groups of manufacturers: integrated

device manufacturers (IDMs), which design

and manufacture Logic chips; and contract

manufacturers, known as foundries.

Foundry manufacturers produce chips for

‘fab-less’ companies that focus on design

and distribution but do not manufacture

microchips themselves.

Memory chips can store large amounts

of data in a very small area. And there

are two main types: volatile chips such

as DRAM, which efficiently provide data

to the processor and only save data when

the device is turned on; and non-volatile

chips such as NAND Flash, which save

data even after the device is turned off.

Microchips vary in complexity depending

on the task they need to fulfill. For example,

the most advanced chips power leading-

edge technology such as AI, big data and

automotive technology, while simpler, low-

cost chips such as sensors integrate sensing

capabilities into everyday technology –

creating the loT. The simplest types of chips

can be made with more mature lithography

technology, whereas manufacturers of the

most complex chips need to use the latest

EUV systems.

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Our marketplace (continued)

| 4. The forces impacting our strategy | | --- || Maintaining customer trust requires focus on innovation, cost, quality, response time and sustainability. | | --- || We need to manage complexity in systems and processes and strengthen our sites, supply chain and people. | | --- || The virtuous cycle of Moore’s Law continues – potentially accelerated further by AI. | | --- || Geopolitical volatility requires a more robust approach to support our customers and people. | | --- || The industry pushes against the limits of scaling and uses a widening array of levers to increase density. | | --- || Success and systemic relevance have increased our responsibility to society. | | --- |

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Our business strategy

Our six priorities will drive long-term growth. Over the following pages, we expand on our progress in 2025.

	1<br><br>Deepen<br><br>customer<br><br>trust	2<br><br>Extend our<br><br>technology<br><br>and holistic<br><br>product<br><br>leadership	3<br><br>Strengthen<br><br>ecosystem<br><br>relationships	4<br><br>Create an<br><br>exceptional<br><br>workplace	5<br><br>Drive operational<br><br>excellence	6<br><br>Deliver on ESG<br><br>sustainability
More information	Page 29	Page 31	Page 33	Page 35	Page 37	Page 39

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Our business strategy (continued)

1
Deepen<br><br>customer<br><br>trust
Consistently deliver innovative,<br><br>high-quality and reliable holistic<br><br>lithography solutions that foster<br><br>long-term customer partnerships<br><br>and set industry standards<br><br>for excellence

Our commitment to deepen customer trust

is woven into every facet of our operations,

driving us to continually:

•Increase value creation focused on

innovation, cost, quality, response time

and sustainability.

•Strengthen partnerships with customers

based on even deeper understanding

and anticipation of their needs and

product roadmaps.

•Expand the bandwidth, responsibility

and accountability of our customer

teams, empowering them to champion

the voice of the customer and meet

their requirements.

Increase value creation for customers

In today’s rapidly evolving technological

landscape, delivering exceptional value to

customers requires more than just meeting

expectations – it demands foresight and

continuous improvement in every aspect

of our interactions. Our commitment to

innovation helps us to stay ahead, developing

solutions that address both current needs

and future challenges. We allocate significant

investment in R&D to drive new technologies

faster and with greater impact, refine existing

systems and fuel creative approaches to

efficiency and performance.

Our innovation is closely linked to

our commitment to customer value.

By streamlining processes and optimizing

our supply chain, we aim to strike a balance

between high-performance solutions and

cost efficiency, providing products that

align with market demands.

Equally important, is our pursuit of quality

in every stage of our operations. Robust

quality assurance protocols are embedded

throughout the product lifecycle to help our

systems meet availability and reliability

standards our customers rely on.

Our approach to quality naturally extends

to sustainability, which directly benefits

our customers. Guided by environmental

responsibility, we continually seek to reduce

emissions, minimize waste and design

products with lower energy consumption

and higher recyclability, laying the groundwork

for lasting impact across our value chain.

Finally, we listen actively and take decisive

action to address customer concerns swiftly

and effectively. Our responsiveness and

alignment with their expectations reinforces

our commitment to their continued success.

Strengthen partnerships with customers

Our customers are why we exist. Establishing

true partnerships with them is rooted in a

genuine desire to understand their unique

challenges, business models and strategic

roadmaps. ASML’s strategic transformation

has strengthened this endeavor through

direct engagement, open communication

and continuous dialogue, which drives our

decision-making. We recognize that customers

operate in a complex, fast-paced environment

where collaboration and mutual trust are

essential for shared success. This close

alignment allows us to tailor our offerings,

proactively address pain points and co-create

solutions that deliver measurable impact.

At the same time, anticipation is a hallmark

of our customer engagement strategy.

By staying attuned to industry trends and

technological shifts, we help them navigate

uncertainty and seize new opportunities.

We try to anticipate changing requirements

as early as possible by leveraging customer

feedback, conducting market analyses

and harnessing the expertise of our cross-

functional teams. Through these efforts, we

aim to not only meet expectations but also

empower our customers to excel, positioning

ourselves as a trusted and indispensable

partner in their journey to growth and success.

Empower our customer teams

Empowering our customer teams is central

to delivering tailored and relevant solutions.

We delegate greater responsibility to our cross-

functional teams, so that those closest to the

customer have the authority and resources

necessary to make decisions swiftly and

effectively. With comprehensive training and

direct lines of communication with leadership,

teams are equipped to address challenges

as they arise and champion the voice of the

customer throughout the organization.

In parallel, extending accountability applies

not only to meeting targets but also to nurturing

a culture where each team member feels

personally invested in our customers’ success.

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Our business strategy (continued)

Powering technology forward

through customer

collaboration

Keeping our lithography

systems running 24/7

At ASML, customer trust is a guiding principle

woven into the daily work of engineers like Edison

Alameda. As a second-line customer support

engineer for EUV in Chandler, Arizona, Edison’s

job is to ensure the smooth operation of some

of the world’s most advanced semiconductor

manufacturing equipment and serve as a bridge

to the customers who depend on them.

Read more
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Our business strategy (continued)

2
Extend our<br><br>technology<br><br>and holistic<br><br>product<br><br>leadership
Integrate hardware, software<br><br>and emerging solutions to create<br><br>industry-defining products for<br><br>our stakeholders

As a key manufacturer of lithography

equipment, ASML plays a vital role in

the semiconductor value chain. We don’t

innovate in isolation, but as architects and

integrators collaborating closely with our

customers, supply chain and research

and technology partners in a strong

innovation ecosystem.

To extend our technology and holistic

product leadership, we continually aim to:

•Innovate across our entire portfolio to

continue to provide critical, differentiated

and cost-effective solutions to our

customers.

•Prioritize cost and energy consumption

reduction by streamlining process flows,

ensuring the highest transistor density at all

process steps and advancing technologies

that boost productivity, lower technology

expenses and cut emissions.

Innovate across our portfolio

With R&D of €4.7 billion in 2025, ASML’s

portfolio-wide innovations tackle the most

complex challenges in semiconductor

manufacturing. This reflects our strategic

vision to remain ahead of market demands

and customer expectations. We deliver new

and refined technologies that are not only

critical for the industry but also uniquely

tailored to the evolving needs of

our customers.

Research and development (in € billions)

8246337217853

At the heart of our innovation is the drive to

provide solutions that are both differentiated

and cost-effective. Our holistic lithography

portfolio spans DUV and EUV lithography

systems, metrology and inspection systems,

computational lithography and system and

process control software, all of which address

a wide range of customer requirements. By

continuously introducing advancements in

these domains and innovating for emerging

applications like advanced packaging and

3D integration, we aim to ensure our offerings

remain relevant for customers and aligned

with market needs.

In addition, AI is becoming increasingly vital

for ASML, as evidenced by our €1.3 billion

investment in Mistral AI. We believe this

partnership enables us to explore the use

of AI models across our product portfolio

as well as in our research, development

and operations, to benefit our customers

with faster time-to-market and higher-

performance holistic lithography systems.

Our technology feasibility studies and

product development efforts are closely

aligned with customer device roadmaps,

helping us to anticipate and meet future

industry challenges before they arise.

Our products and services

Crucial to our innovation is our close

collaboration with customers, supply

chain partners and research and technology

institutions within a vibrant innovation

ecosystem. By engaging directly with

these stakeholders, we can develop solutions

that are not only technologically advanced

but also operationally viable and scalable.

Collaborative projects, often supported and

subsidized by the European Union and its

member states, serve to amplify the impact

of ASML’s research – accelerating progress

in semiconductor manufacturing technology

while adhering to the guiding framework

of Moore’s Law.

Prioritize cost and energy

consumption reduction

While innovation is essential, we recognize

that it must be coupled with a commitment to

efficiency and sustainability. Our strategy

explicitly prioritizes reductions in cost and

energy consumption across all product and

process developments. This begins with

streamlining process flows throughout the

equipment lifecycle, with the goal that every

step, from design to manufacturing to

deployment, contributes to cost efficiency

and environmental stewardship.

Next to this, we dedicate significant

resources to optimizing platform

commonality, reducing system costs

and extending the service life of critical

equipment. By doing so, we enable our

customers to attain greater performance

and value from each new technology

generation and help them comply with

increasingly stringent sustainability goals

and regulatory standards.

ASML’s efforts to lower technology expenses

and cut emissions are deeply linked to our

mission to foster a more sustainable value

chain. Initiatives to enhance recyclability,

decrease energy consumption during

operation and integrate green practices

into every product iteration underscore

our leadership in responsible innovation.

In this way, we are not only responding

to the needs of today’s semiconductor

manufacturers but also paving the way for

a future where technological growth goes

hand in hand with ecological accountability.

Innovation ecosystem – ESG innovation

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Our business strategy (continued)

Powering technology forward

through

cutting-edge

physics

1,000-watt EUV light source power

shows path to higher productivity

In April 2025, ASML reached a historic milestone:

demonstrating the first ever 1,000-watt light source

for EUV lithography. This breakthrough, built on

25 years of engineering advancements, showcases

our ability to turn fundamental physics into scalable

innovation that supports our customers’ roadmaps.

It is a critical step toward faster, more cost-efficient

production of tomorrow’s cutting-edge chips.

Read more
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Our business strategy (continued)

Strengthen ecosystem.jpg

3
Strengthen<br><br>ecosystem<br><br>relationships
Collaborate with suppliers,<br><br>academic partners and industry<br><br>leaders to foster innovation,<br><br>resilience and shared success<br><br>across the value chain

Together with our customers, suppliers,

research and technology partners and

peers, we:

•Focus on our shared goals and responsibilities

for cost, quality and sustainability to secure

resilience and continuity through strategic

sourcing and close cooperation.

•Balance risk and reward, aiming to ensure

that ambitious targets for innovation,

operational excellence and sustainability

are achieved within a thriving, interconnected

value chain.

•Support growth, mitigate disruptions and

collectively elevate industry standards.

•Foster collaboration to make the ecosystem

stronger and more agile for the future.

We trust our supply chain to manufacture

most system parts and modules, and many

partners to play a crucial role in developing

our new technology. We aim to foster even

closer relationships with our suppliers

and broader ecosystem, based on shared

goals and responsibility for cost, quality

and sustainability.

Driving continuous innovation

ASML’s innovation ecosystem is built on

strong relationships with customers, suppliers,

co-solution partners, technology partners

and academia. By closely collaborating with

these groups and with industry organizations

such as the Confederation of Netherlands

Industry and Employers (VNO-NCW), SEMI’s

Sustainability Advisory Council and the

Semiconductor Climate Consortium (SCC),

we aim to foster accelerated innovation and

ensure access to leading-edge knowledge

and technologies. Jointly, we tackle industry-

wide challenges such as ESG sustainability,

ultimately supporting growth and resilience

across the semiconductor value chain.

Academia, industry and research institutes

We co-develop technical expertise with

a broad network of technology partners,

including universities and research

institutions in Europe, the US and Asia.

Key partners include the technical universities

in Delft, Eindhoven and Twente, the Advanced

Research Center for Nanolithography (ARCNL)

and research organization TNO in the

Netherlands, CEA-Leti in France, Fraunhofer

in Germany and imec in Belgium. In March

2025, we signed a five-year strategic

partnership agreement with imec with the aim

to strengthen collaboration on emerging and

societal challenges, and to develop initiatives

focused on sustainable innovation in Europe.

In the US, we partner with, among others,

the University of California system, Stanford

University, Massachusetts Institute of

Technology (MIT), University of Colorado –

Boulder, Purdue University, University of

Illinois Urbana – Champaign.

Local and national governments

Governments at the local and national levels

are key partners in our ecosystem, working

together where we can to continue innovating

and addressing mutual societal challenges.

Public–private partnerships

We work closely with our partners to develop

and deliver research and innovation projects

subsidized by the EU and its member states.

These collaborative projects aim to advance

IC technology for the semiconductor industry

while adhering to Moore’s Law, focusing

on enhancing performance and energy

efficiency. The Horizon Europe program

and the European Chips Act are designed

to facilitate collaboration and amplify the

impact of research and innovation in the EU.

Focusing on quality and cost

Our suppliers and innovation partners

play a crucial role in optimizing both cost

efficiency and product quality. By fostering

open collaboration and sharing technological

advancements, they enable ASML to access

advanced technologies, materials,

components and processes. Joint research

efforts can lead to streamlined manufacturing,

reduced waste and improved yields, while

rigorous quality controls ensure reliability.

Early involvement in design and transparent

communication allows problems to be

addressed before production, which can

minimize the risk of costly errors.

Embedding sustainability in our operations

Sustainability is pivotal in our ecosystem

because it can help ensure long-term

resilience and competitiveness amid rapid

industry transformation. By embedding

sustainable practices into our operations –

across supply chains, innovation and

partnerships – we seek to minimize our

environmental impact, conserve valuable

resources and align with global expectations

for responsible business.

Our commitment not only works toward

safeguarding our planet, but can also

strengthen relationships with customers,

suppliers and stakeholders who increasingly

prioritize ESG sustainability standards.

Ultimately, integrating sustainability drives

operational excellence, supports cost

efficiency and empowers us to innovate

responsibly. This positions our ecosystem

to thrive in a future where environmental

stewardship is inseparable from

business success.

By focusing on cost alongside quality and

sustainability, together with all our partners

in our innovation ecosystem, we seek to

navigate the delicate balance between

innovation and commercial success in a

highly dynamic global semiconductor market.

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Our business strategy (continued)

Getting even closer

to our suppliers

In the dynamic landscape of semiconductor

manufacturing, ASML’s supply chain serves as the

foundation of our operations, enabling us to push the

boundaries of technology while meeting the evolving

demands of our customers. With approximately 80%

of our bill of materials sourced from a global network

of suppliers, close collaboration and joint innovation

have always been at the heart of our strategy. We

believe this partnership model not only supports the

reliability and quality of our products but also fosters a

shared commitment to advancing Moore’s Law, which

remains essential for the industry’s continued progress.

Wayne Allan, EVP and Chief Strategic Sourcing &

Procurement Officer, explains how his organization

is strengthening ASML’s ecosystem relationships.

Powering technology forward

through collective

innovation

Wayne Allan

EVP and Chief Strategic Sourcing

& Procurement Officer

Read more
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Our business strategy (continued)

Exceptional workplace.jpg

4
Create an<br><br>exceptional<br><br>workplace
Foster inclusivity, support<br><br>talent development and cultivate<br><br>a culture where all employees<br><br>thrive and contribute to long-<br><br>term success

To unlock our growth potential, we are

striving to build an exceptional workplace

where our people can develop their

exceptional talents and thrive.

Our people strategy aims to answer the

challenges and opportunities of our growth,

and the evolving nature of global work, to guide

the development of our people and culture to

This is organized into four broad areas:

1.Develop a scalable and sustainable

organization: Through clarity and

knowledge-sharing

2.Build a workplace that works for

everyone: Fostering inclusion, diversity

and belonging

3.Invest in people effectiveness

and development

4.Strengthen our leadership: Accelerating

development and building a pipeline of

future leaders

To meet our responsibilities as a leading

partner and employer in the semiconductor

ecosystem, and to continue delivering the

technology our customers need, we are

building capacity and capabilities for the

future. With the semiconductor industry

projected to surpass $1 trillion in sales by

20301, ASML is preparing for a period of

significant business growth through 2030.

Meeting this anticipated demand requires

us to scale responsibly, while preserving

the culture and values that have shaped

our success.

1.As presented during our Investor Day in

November 2024

Attracting and retaining the best talent

is essential to maintaining our pace of

innovation. However, the world of work is

changing rapidly. From global talent shortages

and generational shifts to geopolitical dynamics

and the rise of generative AI, a range of forces

are reshaping how organizations plan for the

future. Our people strategy is designed to

respond to this complexity, ensuring we remain

a place where exceptional talent can thrive.

Our-Business-Strategy_Create-an-exceptional-workplace_ASML-People-Strategy.jpg

| ASML People strategy | | --- || Develop a scalable and sustainable organization | Build a workplace that works for everyone | | --- | --- || Exceptional talent, exceptional workplace | | --- |

Invest

in people

effectiveness

and development

Strengthen

our leadership

1. Develop a scalable and

sustainable organization

To deliver on our growth plans and address

the shifts in our competitive landscape,

we need to further build a scalable and

sustainable organization, based on a clear

and transparent operating model, using our

principles of clarity, agility and scalability.

This includes empowering decision-making

at the right levels, aligning roles and

responsibilities, and improving coordination

across departments.

Strategic workforce planning and knowledge

management are central to this effort. We are

identifying the critical capabilities needed to

deliver on our business goals and know-how

through proactive collaboration and learning.

Through platforms like the ASML Academy,

employees can access relevant knowledge

and learning opportunities that support both

day-to-day work and future development.

2. Build a workplace that works

for everyone

We believe innovation thrives in an

environment where people feel safe,

respected and included. As we continue

to hire globally, we are focused on creating

a workplace where everyone, regardless

of background, can bring their full selves

to work and contribute meaningfully.

Our workplace strategy is intended to foster

a culture of belonging, support well-being

and enable collaboration. We are investing

in inclusive practices across hiring,

performance and career development,

while amplifying the voices of our employee

networks and ambassador communities.

Our well-being program supports mental,

physical, social and financial health, helping

employees and leaders build resilience and

maintain a healthy work-life balance.

3. Invest in people effectiveness

and development

Learning is central to our culture, and

we invest heavily in onboarding, training

and career development to help employees

grow and succeed. This includes reducing

time-to-competence, expanding

opportunities for internal mobility and

supporting personalized learning.

To scale responsibly, we are expanding

our global talent pipeline and improving

the speed and quality of recruitment.

Our approach to internal mobility helps

employees navigate across ASML, bringing

key talents to where they can have the most

impact and building a holistic understanding

of our value chain.

4. Strengthen our leadership

Leadership is key to navigating ASML’s

complexity and growth. Leaders need to

be able to deal with various challenges,

considering stakeholder management across

the company and changing expectations

of employees across generations – which

requires more empowering, multi-faceted

and integrative leadership. This implies

continuing to foster our technical leadership

and further building our people and process

excellence. Succession planning, strong

pipelining and investing in senior positions

and landing spots is critical to enable

leadership development.

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Our business strategy (continued)

Powering technology forward

through diverse,

inspired talent

Diversity is a fact, inclusion

is an act

It is one thing to be a diverse organization,

benefiting from a workforce with a wide range

of backgrounds, cultures, experiences and ways

of thinking, but we believe being an inclusive

organization – one where everybody can be

at their best – can make a real difference. Cristina

Monteiro, EVP Human Resources & Organization

(HR&O), explains the role that inclusivity plays

in enabling innovation to thrive at ASML.

Cristina Monteiro

EVP Human Resources &

Organization (HR&O)

Read more
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Our business strategy (continued)

Drive operational excellence.jpg

5
Drive<br><br>operational<br><br>excellence
Drive continuous improvement,<br><br>efficiency and integrity to ensure<br><br>high performance, quality<br><br>and resilience throughout<br><br>the organization

ASML is preparing for expected significant

growth through 2030 by expanding its

product range and operations, which

demands a resilient and scalable industrial

strategy and global footprint. We focus on

aligning our supply chain and manufacturing

footprint with customer locations and

macroeconomic trends, while driving

innovation, quality and sustainability to

maintain competitiveness and operational

excellence. We aim to:

•Create a learning organization that drives

a culture of continuous improvement, with

fast feedback loops and a sustainable

impact on our safety, quality, cost and

delivery performance.

•Drive improvements in cross-company

business performance to reduce cost and

cycle times, improve quality and secure

on-time delivery.

•Optimize our industrial footprint to have

market, talent and technology access while

protecting our know-how and our business.

•Secure a successful enterprise resource

planning (ERP) migration to enable scaling

and drive improvements in cost, quality

and compliance.

•Protect and defend ASML’s interests and

reputation by driving a culture of integrity

and compliance, including for products,

information security, cyber resilience and

export controls.

Driving a culture of continuous improvement

We aim to drive a culture of continuous

improvement by fostering a learning

organization that emphasizes rapid feedback

loops, encouraging employees to engage

with and respond to changing conditions

quickly and effectively. We aim to integrate

improvement into every aspect of our

operations, from safety and quality to cost

and delivery, with the goal that these core

metrics are always evolving in response

to lessons learned.

This approach is supported by a multi-

year quality roadmap that spans the entire

product lifecycle, from initial design to field

service, creating sustainable impacts and

reinforcing customer trust. By embedding

this culture deeply within the organization,

we not only enhance internal performance

but also strengthen our competitive edge

in the global marketplace.

Reducing cost and cycle times while

improving quality

To achieve operational excellence, we aim

to systematically reduce costs and shorten

cycle times without compromising quality –

leveraging advanced analytics, automation

and AI. AI-driven insights help us streamline

processes, eliminate inefficiencies and

respond even faster to market demands.

By integrating continuous feedback and

robust validation, we accelerate project

delivery and strengthen customer trust

with reliable solutions.

This approach enables us to set new

benchmarks in quality and productivity while

maintaining flexibility to adapt. Through

AI-powered innovation and cross-functional

collaboration, we believe we can position

ourselves at the forefront of the

industry’s evolution.

Optimizing our industrial footprint

We are expanding and optimizing our

global footprint to ensure business continuity,

increase capacity for future growth and

maintain cost efficiency in serving our

customers worldwide. By broadening

supplier bases in Asia and enhancing

manufacturing in Europe, Asia and the US,

we aim to better meet customer needs.

Access to expertise for timely development,

new technologies and product introductions

remains our main priority.

Securing ERP migration

A successful ERP migration is crucial for

ASML’s future growth, enabling unified

business processes and agile decision-

making. By adopting advanced digital tools

and AI-driven predictive analytics in planning

and logistics, we believe we can protect

business continuity and data integrity and

empower teams to deliver greater value.

This transformation supports rapid innovation

and helps ASML maintain high standards

in operational excellence, compliance and

adaptability to changing market demands.

Driving a culture of integrity

and compliance

We continue to prioritize integrity and

compliance, enabling our operations to

adhere to information security, cyber resilience

and export controls. By embedding ethical

conduct and robust compliance programs

throughout our organization, we believe we

can safeguard our reputation and know-how,

build trust with stakeholders, and reinforce

our leadership in the complexities of a

globally connected industry.

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Our business strategy (continued)

Powering technology forward

using the potential

of AI

How AI helps drive

innovation at ASML

Artificial intelligence is presenting new ways

to extend our innovation roadmap. As well

as enhancing lithography efficiency and

precision, we expect it to accelerate R&D and

help streamline customer support through

smarter diagnostics. We believe our recent

partnership with Mistral AI positions us to

harness these capabilities, helping us deliver

next-generation solutions and provide even

stronger support for our customers.

Read more
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Our business strategy (continued)

6
Deliver<br><br>on ESG<br><br>sustainability
Drive progress in environmental,<br><br>social and governance issues<br><br>important to ASML and our<br><br>stakeholders

Key dynamics impacting our ESG

sustainability strategy

Our technology enables our customers to

create faster, more powerful and energy-

efficient microchips. These enable exciting

new digital technologies, including AI, which

can help tackle some of humanity’s toughest

challenges – in healthcare, education, energy

and mobility. At ASML, we are inspired by

their potential for positive impact, on people

and the planet.

At the same time, these advancements bring

new challenges. With the arrival of AI, global

demand for computing is growing rapidly,

and the anticipated strain that data centers

will place on energy infrastructure – as well

as the resulting increase in emissions – are

shared concerns. As part of the solution, our

customers are developing even more energy-

efficient microchips, and we are providing our

holistic lithography innovations to support

the 2D shrink and 3D integration required.

Collaboration across the knowledge network

– academia, research institutes, startups,

the consumer-facing ICT industry, microchip

makers and microchip equipment makers –

is essential.

Our customers are also increasing microchip

production to meet growing demand.

Achieving this growth without a corresponding

rise in energy use and emissions is a critical

challenge. Collaboration throughout the value

chain is vital, supported by initiatives such as

the Semiconductor Climate Consortium. Our

EUV systems help limit the increase in energy

and chemicals use from the production of

complex microchips by reducing the number

of process steps. We are working to further

drive down energy consumption of our EUV

systems and all product families.

Building on these efforts, we turn our

choices into tangible actions. We organize

our ESG sustainability program into distinct

themes, each with targets to drive

meaningful progress.

Environment

We aim to be greenhouse gas neutral across

our value chain by 2040, working in close

partnership with customers and suppliers.

We are reducing the energy use and

emissions of the systems we design and sell

and those we have already installed at our

customer sites. Each of our product families

has a long-term energy saving roadmap –

from enabling hydrogen reuse, to sleep

modes, to high-temperature cooling water.

These solutions have the potential to make

a meaningful difference when scaled by

customer adoption.

In our own laboratories, factories and offices,

we have chosen renewable electricity, and

we aim to drive continuous improvement in

energy saving – from optimized controls in

clean rooms, to waste heat reuse, to on-site

green hydrogen generation. In transport,

we are increasing the number of ocean

shipments to customers, compared to

air. From our suppliers, we require their

commitment to saving energy, reducing

emissions and preventing, mitigating and

managing adverse environmental impacts.

Servicing and repairing installed systems to

extend lifespan has always been central to

our customer offer. We are now repairing

more parts locally, closer to the customer,

to reduce cycle times and cut emissions.

Using materials efficiently is important to

us. We drive down waste and increase reuse

of returned materials before we use new –

through investments in reverse logistics,

warehouses and repair centers. We closely

manage end-of-life materials and aim to have

zero waste from operations to landfill and

incineration by 2030.

Social

People – our employees, suppliers and

communities – lie at the heart of our ESG

sustainability approach.

We aim to provide an attractive workplace

for all. Employee safety and well-being are

top priorities. Inclusion and diversity are

also cornerstones – reflecting our values,

powering our innovation and making our

business stronger. We are committed to

supporting our employees in their own

contributions, through time for volunteering

and matching of donations.

Upstream of our operations, due diligence

on how people are treated is a part of our

relationship with suppliers. Our aim is to

prevent, mitigate and manage adverse

human rights impacts in our value chain.

We aim to be a valued partner in our

communities, thriving together. Listening

to people who live near our operations and

acting on their feedback has always been

important to us, especially when we grow

our footprint. We are proud to invest in issues

that matter most to our neighbors and create

lasting benefit – from affordable housing, to

early-years science education, to green

spaces, to arts and sports programs.

Governance

We aim for ESG sustainability to be

integrated into day-to-day decision-making.

We drive progress through reviews and

updates for the Board of Management and

Supervisory Board, supported by a central

team. ESG sustainability represents 20% of

ASML’s long-term leadership targets. We

actively engage with our stakeholders on

focus topics and aim for transparent, best-

in-class reporting.

Powering technology forward

while aiming to reduce

environmental impact

Simpler processes can

make chip production

more sustainable

The global economy relies on a supply of ever-more

powerful microchips. As an industry, we believe we

have a joint responsibility to advance sustainability

in chip production. By developing new lithography

technologies with finer resolutions – such as EUV

0.33 NA and the latest EUV 0.55 NA (High NA) system

– ASML supports chipmakers in simplifying the

manufacturing process, moving from multi-patterning

to single patterning. Fewer process steps can help

limit the increase in energy and chemicals use from

production of more and increasingly complex chips.

Read more

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---	---	---	---	---

Our business model

The resources and the relationships that enable us to create sustainable long-term value

People and culture
	We depend on more than 44,000 talented,<br><br>dedicated and motivated employees who<br><br>live our values of challenge, collaborate and<br><br>care. Every day, our colleagues in R&D,<br><br>manufacturing, customer support, sourcing<br><br>and supply chain, and support functions, are<br><br>empowered to take on the exciting challenge<br><br>of building and maintaining the most<br><br>advanced lithography, metrology and<br><br>inspection systems in the world.
	Read more on page 46 >
Capital
---	---
	We have strong capital reserves,<br><br>underpinned by a robust balance sheet.<br><br>Total shareholder equity at the end of 2025<br><br>amounts to €19.6 billion on a consolidated<br><br>balance sheet total of €50.6 billion and<br><br>net cash provided by<br><br>operating activities of<br><br>€12.7 billion in 2025.
	Read more on pages 279, 282 >

Manufacturing facilities
	We have eight factories in Europe, the US<br><br>and Asia that provide high-precision, highly<br><br>controlled environments where we assemble,<br><br>test and deliver our complex lithography and<br><br>metrology and inspection portfolio, from<br><br>prototype to final product.
	Read more on page 18 >
Innovation
---	---
	In 2025, total R&D was €4.7 billion. But we<br><br>do not innovate alone – our more than 16,000<br><br>R&D employees collaborate closely within<br><br>an innovation ecosystem of key partners in<br><br>the value chain.<br><br>Our lithography solutions are the result of<br><br>strong partnerships based on trust, respect,<br><br>and shared risks and incentives to compete<br><br>and drive innovation.
	Read more on page 31 >

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Our business model (continued)

How we create sustainable long-term value throughout the semiconductor value chain. As a leading provider of holistic lithography solutions, we deliver value throughout the semiconductor value chain. Our comprehensive lithography portfolio enables cost-effective microchip scaling and supports our customers’ technology roadmaps.

Together with our customers,

suppliers and partners across

our innovation ecosystem,

we develop the most advanced

lithography systems in the world.

Innovation

and R&D

With around 10,000 customer

support employees worldwide,

we work 24/7 to maintain and

enhance system performance –

for both new systems and our

growing installed base, which

we upgrade and refurbish.

As system architects and

integrators, we work closely

with our world-class suppliers

to help customers make

smaller, faster, more energy-

efficient microchips, while

reducing the cost per wafer.

Lithography

Holistic

lithography

Computational

lithography

Metrology and

inspection

Helping our customers generate

the greatest value per silicon

wafer, creating microchips

that are more powerful, faster

and more energy-efficient.

Customer support

and installed base

management

System integration

and installation

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Our business model (continued)

The sustainable long-term value we created for our stakeholders in 2025

Customers
Our world-leading lithography<br><br>systems enable our customers<br><br>to develop ever-more-powerful<br><br>and energy-efficient chips for new<br><br>applications and devices. At the<br><br>same time, we help our customers<br><br>reduce their costs and<br><br>environmental footprint.
€32.7bn<br><br>Total net sales
2024: €28.3bn
535<br><br>System sales in units
2024: 583
88%<br><br>Customer satisfaction<br><br>survey score
2024: 86%		Employees
---
ASML is a growing business<br><br>providing employment<br><br>opportunities around the world.<br><br>We invest in people’s career<br><br>development and well-being,<br><br>and aim to provide a diverse and<br><br>inclusive environment where they<br><br>can achieve their full potential.
78.9%<br><br>Employee engagement score<br><br>(three-year rolling average)
2024: 78.9%
21%<br><br>Women in our workforce<br><br>(headcount)
2024: 21%
4.1%<br><br>Attrition rate
2024: 3.8%		Suppliers
---
Our suppliers help deliver our<br><br>innovations and are critical to<br><br>our value chain and our ambition<br><br>to be a sustainable leader in the<br><br>semiconductor industry. Long-term<br><br>relationships, close collaboration,<br><br>transparency and a commitment<br><br>to sustainability with our suppliers<br><br>are key to our success.
5,100<br><br>Total number of suppliers
2024: 5,150
90%<br><br>Responsible Business Alliance<br><br>(RBA) self-assessment<br><br>completed (in %)
2024: 91%
100%<br><br>Suppliers with overall high<br><br>risk evaluated and follow-up<br><br>agreed (in %)
2024: 100%
Shareholders
---
Effective and disciplined<br><br>investment of cash flow drives the<br><br>profitable growth of our company,<br><br>and can deliver solid financial<br><br>performance and a healthy<br><br>financial position. This underpins<br><br>our ability to return cash to<br><br>shareholders through growing<br><br>dividends and share buybacks.
€12.7bn<br><br>Net cash provided by<br><br>operating activities
2024: €11.2bn
€7.50<br><br>Proposed annualized<br><br>dividend per share
2024: €6.40
€5.9bn<br><br>Share buyback
2024: €0.5bn
Society
---
We play an active role in the<br><br>communities where we operate –<br><br>recognizing that, when the<br><br>community thrives, so do we.<br><br>We believe our collaborative<br><br>ecosystem nurtures innovation and<br><br>benefits society. For example, we<br><br>share our expertise with universities<br><br>and research institutes,
€1,750<br><br>Amount invested in communities<br><br>(per employee), including<br><br>employee giving
2024: €1,084
€20.6m<br><br>Contribution to<br><br>EU research projects
2024: €18.9m
11.5 Mt<br><br>Net scope 3 CO2e emissions
2024: 12.0 Mt		support young tech companies<br><br>and promote science, technology,<br><br>engineering and mathematics<br><br>(STEM) education worldwide.<br><br>We are also committed to creating<br><br>sustainable value by reducing our<br><br>environmental footprint – both from<br><br>our operations and during the use<br><br>of our products and services.
---
90%<br><br>Reuse rate of parts returned<br><br>from field and factory
2024: 88%
0 kt<br><br>Net1 scope 1 and 2<br><br>CO2e emissions
2024: 33 kt
1. Net scope 1 and 2 CO2e emissions result<br><br>from compensating for residual emissions<br><br>and do not represent our gross emissions.

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Engaged stakeholders

We listen to our

stakeholders and

work with them

to make the best-

informed decision.

Our interaction with them is fundamental

to the long-term success of our business. By

regularly engaging, we can better understand

our impact on them and their respective needs

and expectations.

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Engaged stakeholders (continued)

Customers

At each stage of the customer relationship, we

aim to foster trust – with the goal of achieving

high customer satisfaction and loyalty. By placing

customer success at the center of our work, we

can leverage our innovations and develop even

What’s happening in their world

Macroeconomic uncertainty, caused by but not limited

to technological sovereignty and export controls,

continued to lead certain customers to remain cautious

and carefully control capital expenditure and cash flow

in 2025. Market growth was mainly dominated by AI,

which led to increased demand for AI-related Memory

and specific advanced Logic chips.

How we respond

We are working closely with our customers to optimize

our output capability, navigate through the uncertainty

and manage the risks. We are engaging with them to

mutually understand the affordability of different

technologies and, through regular meetings and

reviews, we are aligning on their current and future

needs to adjust our demand plans while staying flexible.

We are also continuing our capacity investment plans

to meet our customers’ long-term growth targets and,

in compliance with export control regulations, we have

been working to deliver the non-advanced lithography

systems not impacted by the new restrictions. We

continue to guide governments on the semiconductor

manufacturing process and ecosystem to foster

understanding of the potential impacts of current

and future regulatory measures.

We have deployed improvement actions identified in our

2024 customer survey, focusing on truly understanding

what customers need from us, and validating that we are

on the right track. We update our customers regularly on

the progress we are making.

In September 2025, we sent out our latest survey to

measure customer satisfaction, loyalty and trust, and

to identify improvement areas to enable us to better

serve them.

Survey results showed high and increasing levels of

trust in ASML, mainly driven by our transparency and

commitment to fairness and mutual success. Customers

ask us to listen closely to their feedback, resolve issues in

a timely manner, provide them with shorter delivery times

for good-quality products, and continue pushing our

technology forward to meet their current and future needs.

How we engage

•Regular technology review meetings between senior

management and customers

•Executive review meetings to discuss business and

operational strategies with customers

•Operational meetings to discuss various topics,

including technology roadmaps, quality, costs and

ESG matters

•Annual customer feedback survey

•Voice of the Customer program to provide firsthand

feedback about our customers’ needs

•Various technology symposia and special events

We focus on our customers’ needs

There are thousands of ASML systems installed in fabs

across the globe, and our customers want to keep these

machines running 24 hours a day, seven days a week,

365 days a year.

With around 10,000 customer support employees,

including service engineers and applications specialists,

we work around the clock to enable our systems

everywhere to run smoothly.

88%<br><br>Customer satisfaction survey score

Our customers are why we exist. We

collaborate with customers at all levels

of the organization – from CEO-to-CEO

interaction right through to on-the-ground

support at individual fabs. We help our

customers achieve their goals and ensure

our solutions fit their requirements.”

Jim Koonmen

Executive Vice President and Chief Customer Officer

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Engaged stakeholders (continued)

Employees

We strive for engaged employees who are proud

to work for ASML and committed to our vision and

ambitions. Innovation thrives in an environment

where everyone is empowered to contribute. By

creating an exceptional workplace that fosters

inclusivity, we aim to enable everyone to unlock

their full potential and drive our collective success.

What’s happening in their world

ASML has experienced significant growth in recent

years, driven by rising demand in the semiconductor

industry. Attracting and retaining the best talent is

essential to maintaining our pace of innovation. As the

workplace evolves – shaped by global talent shortages,

generational shifts, geopolitics and advancements like

generative AI – we must adapt our strategies to succeed

in this changing landscape.

In 2024, we introduced a new leadership and governance

structure, requiring further focus on maturing. Our

annual employee engagement survey provided valuable

insights into the themes our employees want us to focus

on: inclusion, well-being, career development, quality –

including work processes and cross-team collaboration

– and confidence in the company’s strategic direction.

How we respond

Just as our technological ambitions continue at pace, so

do our aspirations for building an exceptional workplace

that works for all. We are building on a solid foundation

and the strength of our culture and values to scale-up

ASML, aiming to create the best place for our people to

innovate, make an impact and grow. We have a people

strategy to address the challenges and opportunities of

our growth and the evolving nature of global work, as

well as the themes raised by the engagement survey.

How we engage

Direct engagement:

•Employee engagement survey (annually)

•Develop & Perform program, including employee

feedback and performance reviews (annually)

•Learning programs (on occurrence)

•Speak Up Service (on occurrence)

•EHS incident management (on occurrence)

•Employee networks (which are open to all to join),

such as Women, Seniors, Atypical, early career,

multicultural and workers of all national origins,

LGBTQIA+, Parents and Veterans (on occurrence)

•Ambassador communities, aiming to attract and

inspire talent, promote well-being and engage

colleagues (on occurrence)

•Internal communication and awareness, for example,

through the intranet, our ethics program and our EHS

management system (daily)

•Onboarding program for new employees (upon joining)

•All-employee meeting and senior management meetings,

department meetings and interactive lunch sessions

with Board members (on occurrence)

•Human Resources and Employee Relations

(on occurrence)

Engagement via representation:

•Works councils/unions (on occurrence)

| 90% of new colleagues starting in 2025 indicated they had a positive onboarding experience | | --- || 52% of our employees have been in the company less than five years | | --- || 28% of our employees today are not nationals of the country they work in | | --- |

We are on a journey to

inclusivity – and it’s a long

journey. We’ve made good

progress, but there is still

more to achieve.”

Cristina Monteiro

EVP HR&O

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Engaged stakeholders (continued)

Suppliers

Our suppliers are an essential part of our value

chain and critical to our ability to innovate. We

rely on our network of approximately 900 product-

related suppliers for the parts and modules that

make up our products, as well as about 4,200

non-product-related suppliers. Our supply chain

is a key factor in designing and delivering the

technology, quality, affordability and sustainability

that we offer to our customers.

What’s happening in their world

The semiconductor market is cyclical, so the world

of our suppliers is turbulent at times. In recent years,

geopolitical events and inflationary pressures have

added to macroeconomic uncertainty. Suppliers are

expected to build capacity for steep growth in the long

run, while being flexible enough to manage peaks and

troughs in the short run. Our future growth – and that

of our customers – can only happen if our suppliers

are able to keep up. Furthermore, ASML aims to

continually raise the bar for the quality, affordability

and sustainability of what we buy from suppliers.

How we respond

We want to build strong and durable business

relationships with our suppliers based on mutual trust.

We are transparent with them about our business

outlook and the expectations of our customers, and

we listen when suppliers openly share their pain points

and challenges. In addition to the usual day-to-day

supplier management, we conduct intensive audits and

engagement projects with our suppliers. These efforts

address current topics as well as structurally help them

prepare for anticipated long-term growth by building

the required capabilities.

How we engage

•Annual Suppliers’ Day

•Annual Supplier Collaboration Day

•Direct interactions via supplier account teams,

led by sourcing account leaders

•Supplier audits

•Supplier collaboration engagements

•Site visits

•Supplier newsletter

•RBA Self-Assessment Questionnaire (SAQ)

•Speak Up Service

•Knowledge sessions on ESG topics

•Conflict minerals program

By partnering closely with and<br><br>supporting our suppliers, we<br><br>aim to ensure they’re prepared<br><br>to work with us for years to<br><br>come – and to weather the<br><br>changes the chip industry is<br><br>known for, including periods<br><br>of rapid growth and business-<br><br>cycle fluctuations.

We aim to build a resilient,

innovative and affordable

supply chain that can grow

with us toward 2030 and

beyond, and consistently

deliver the quality and value

that our customers need.”

Herman Boom

Head of Strategic Sourcing & Procurement

ASML_Stat-Report_Our-Business_Engaged-Stakeholders_Shareholders_Pg49_v3.jpg

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Engaged stakeholders (continued)

Shareholders

We aim to help shareholders – as well as financial and

ESG sustainability analysts – understand our long-

term strategy. We communicate with them about

our financial growth strategies and opportunities,

our financial and ESG sustainability performance,

our outlook and our shareholder returns.

What’s happening in their world

For investors in the semiconductor industry, 2025

was another dynamic year. In the first half of the year,

geopolitical announcements related to export control

restrictions and tariffs, combined with customer capital

expenditure reductions, created volatility in the

investment community. During the second half of the

year, investor sentiment improved, supported by

large‑scale investments in AI infrastructure and

applications, and increasing demand for advanced

Logic and DRAM to support these applications.

How we respond

During the year, we actively engaged with our

investor community via a large number of conferences,

roadshows and conference calls, to discuss specific

topics relevant to our equity story, including ESG-related

topics. We also encourage investors to visit our Veldhoven

(the Netherlands) or Wilton (US) facilities in person to

discuss and see our capacity expansion plans, as well

as our technology challenges and opportunities in our

ASML Experience Centers.

How we engage

•Annual General Meeting

•Investor Day

•Investor and analyst calls

•ASML quarterly results presentations and

press releases

•Various investor conferences and roadshows

•Various sustainability questionnaires, assessments

and survey feedback

•Direct personal interactions in line with our Bilateral

Contacts Policy, as published on our website

•Engagement meetings with investors associations,

such as the Dutch Investors’ Association (VEB), the

Corporate Governance Forum, Eumedion and the

Dutch Association of Investors for Sustainable

Development (VBDO)

Positioned for significant growth

Expected growth in semiconductor end markets and

increasing lithography spending on future nodes fuel

demand for our products and services.

We will continue to invest in our business and expect to

return significant amounts of cash to our shareholders

through growing dividends and share buybacks.

€8.5bn<br><br>Returned to shareholders through dividends<br><br>and share buybacks in 2025.

Our continued investments

in technology leadership

have created significant

shareholder value.

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Engaged stakeholders (continued)

Society

We know our actions and activities have an impact

beyond ASML – on the world around us in its

broadest sense, which is how we define society.

We engage with organizations, communities and

other bodies in society on a wide range of issues

and other matters of attention – from reducing our

environmental footprint to regulatory matters and

fulfilling our commitment to playing an active role

in the communities where we operate.

What’s happening in their world

Increasingly, the local communities where we

operate feel the impact of our rapid development –

for example in the Brainport Eindhoven region around

our headquarters, in Wilton, Connecticut (US), Taiwan,

Hwaseong (South Korea) or Berlin (Germany). Our

planned campus expansions should consider the

interests of our close neighbors.

Our community stakeholders expect us to take on our

fair share in keeping the region attractive and inclusive

for all community members, with sufficient affordable

housing, sustainable transportation, a strong (technology)

education system for all and opportunities for the

underserved. In addition, we want to help ASML

newcomers integrate and feel at home.

How we respond

Our Community Partnership Program focuses globally

on four areas: boosting the attractiveness of local

communities; aiming to keep these communities

inclusive; supporting science and technology education;

and supporting ESG innovation. Within these areas,

alongside our stakeholders, we have identified and

formed programs that we first began executing in 2023.

We also support our employees in their efforts to give

back to their communities in their areas of interest

through our Employee Giving program and by supporting

their volunteering initiatives.

We work with and collaborate with governments on all

levels (national, regional and local) to ensure our growth

and objectives are clear and can be supported.

at asml.com

How we engage

Direct engagement:

•External survey of Brainport Eindhoven (quarterly)

•Online via social media and websites (global and

local, such as ASML Dichtbij) (daily)

•Dedicated phone lines, online forms and email

addresses, including directly with our

‘omgevingsmanager’ (on occurrence)

•Events, open-house, town halls and local information

sessions (on occurrence)

•Newsletters, community relations and ongoing

community outreach programs (on occurrence)

•Speak Up Service (on occurrence)

Engagement via representation or credible proxies with

industry unions and associations (on occurrence):

•Member conferences and technical forums

•Member consultation on standards

•Brainport Eindhoven (six-week intervals)

Engagement with governments and authorities

(on occurrence):

•Proactive dialogue with government and municipalities

•Relevant EU roundtable discussions

•Compliance reporting

•Dialogue with tax authorities

ASML’s Societal Conference – building community connections

The Societal Conference is ASML’s annual event to highlight and enhance societal engagement with public partners. The 2025 conference – its second edition – focused on ‘Broad Prosperity & Collaboration in Brainport’, exploring the links between economic growth, social resilience and shared responsibility. It serves as a platform for reflection, dialogue and encouraging joint action within the region.

We invited representatives from business, local and national government, and societal partners – with 267 registrations in total.

Our performance_Divider_v4.jpg

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Financial

performance

51	Message from our CFO
54	Financial performance KPIs
59	Long-term growth opportunities

In conversation with Roger Dassen_v2.jpg

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Message from our Executive Vice President

and Chief Financial Officer

Roger Dassen

Roger Dassen<br><br>Executive Vice President and Chief Financial Officer

“Results in line

with guidance,

as AI investment

continues to

gather momentum.”

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In conversation with Roger Dassen (continued)

Executive Vice President and Chief Financial Officer

Dear Stakeholder,

This was another excellent year for ASML.

In line with expectations, sales grew 15.6%

as compared to 2024, driven by continuing

growth in AI and a steady increase in the

number of customers capitalizing on this

significant industry trend.

Our EUV business performed well on the

back of strong sales of the TWINSCAN

NXE:3800E. This latest addition to our NXE

series has been well received by our

customers as this system delivers greater

productivity, enabling them to achieve higher

wafer capacity. We also carried out a significant

number of TWINSCAN NXE:3800E field

upgrades, which resulted in a substantial

portion of EUV system revenue being

shifted to installed base revenue. Our DUV

business in China turned out to be stronger

than anticipated, offsetting marginally lower

than anticipated non-China DUV business

as mainstream business outside of China

remained weak.

Total net sales rose by €4.4 billion, or

15.6%, reflecting an increase in net system

sales of 12.4%, and an increase in net

service and field option sales of 26.2%

compared to 2024. The increase in system

sales was primarily driven by higher EUV

and DUV immersion system sales – this

was partially offset by a decrease in ArF

dry, KrF and i-line sales volumes.

The increase in net service and field option

sales was primarily due to the growing

installed base, higher levels of lithography

tool use for certain customers and more

NXE field upgrades.

Our gross profit and gross margin increased

in 2025 compared to 2024, mainly driven by

a favorable NXE product mix and higher net

service and field option sales and margins.

These positive effects on gross margin were

partially offset by the dilutive impact of EXE

systems recognized in sales.

Key dynamics of 2025

There were three important factors this year.

Firstly, during the year, several question

marks emerged around geopolitical

challenges, notably tariffs. Heightened levels

of uncertainty were apparent for some

customers, who were understandably

apprehensive about investing in major

manufacturing bases if the equipment they

needed could potentially become

significantly more costly.

Secondly, while AI-related demand

continued to surge, demand from other

segments was relatively subdued during

the first part of 2025. This changed as the

year progressed, and the markets associated

with PCs and smartphones, among others,

began to accelerate.

Finally, the number of customers seizing

opportunities generated by the AI boom

began to increase. Early in the year, AI

was benefiting only a small number of our

customers, but its impact has now spread

to more. All three major DRAM players have

identified benefits from the AI uptick, and this

drove a marked increase in optimism and

positivity. Turning to the foundry market,

where a single major company leads, we

have seen some signs of recovery for some

of the other players in this market.

Putting AI at the heart of our organization

In recent years, we have dedicated more

resources to the field of AI and we

have recognized a number of areas where

it can play a pivotal role in the company’s

development and how we meet

customer needs.

Software already is a major factor in

driving the performance of our systems –

by incorporating artificial intelligence, we can

elevate precision and speed to the next level,

required to meet our customers’ advanced

needs. For example, in operations demanding

nanometer-level accuracy, a temperature

fluctuation as small as one-thousandth of

a degree may have huge implications. So

deploying best-in-class AI models to assess

the behavior of exogenous variables on a wafer

can drive the performance of our lithography,

metrology and inspection systems.

We are also using AI to become more

efficient as an organization. This is an area

where the finance team has played an important

role within ASML by monitoring the various

efficiency initiatives across the business, with

efficiency measured as output per person.

A key issue is around how many people we

need in order to create the required output –

and this has led us to prioritizing initiatives

in a number of domains.

In R&D, we are using AI to reduce the time-

to-market for new products and services,

supporting our engineers so their innovations

can deliver improvements to customers as

quickly as possible.

AI is helping us in several operational areas,

including improving efficiency by providing

insights into how we can best sequence

production phases to create an optimal flow.

Our customer support engineers also use

AI in the field, for example with machine

diagnostics that can make preventive

maintenance more efficient.

In addition, AI is behind ongoing

improvements in the efficiency of the

company’s enabling functions, including

Finance, IT, HR, Legal and Compliance

and many more areas.

€32.7bn
Total net sales
52.8%
Gross margin
€8.5bn
Returned to<br><br>shareholders

We cannot reap

the benefits of AI

– for ourselves

as well as for our

customers – without

engaging with

external partners.”

Roger Dassen

Executive Vice President and Chief Financial Officer

ASML_AR_Strat-Report_Fin-Perf_In-conversation-with-RD-cont_v2.jpg

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In conversation with Roger Dassen (continued)

Executive Vice President and Chief Financial Officer

…and of our future

Building on a long history of working closely

with organizations across our ecosystem, we

recognized that we cannot reap the benefits

of AI – for ourselves as well as for our

customers – without engaging with external

partners. When generative AI started to land,

we began looking at potential partners,

including Mistral AI, and we were delighted to

take an approximately 11% share on a fully

diluted basis in the company during 2025.

Mistral AI has a high-quality large language

model able to support software coding and

therefore plays a pivotal role in the

development of our systems. Furthermore,

we believe Mistral AI and ASML are an

excellent fit. We have seen how their teams

understand our culture as well as how our

engineers work and what they need –

and that synergy is really critical.

Leading the way on sustainability

We cannot reap

the benefits of AI

– for ourselves

as well as for our

customers – without

engaging with

external partners.”

Roger Dassen

Executive Vice President and Chief Financial Officer

reporting

The finance team worked hard throughout

2025 to help ASML maintain its reputation

as a role model in sustainability reporting.

We prepared our previous 2024 Annual Report

in accordance with European Sustainability

Reporting Standards (ESRS) requirements,

and I am pleased to say that this year’s

report follows suit.

We took part in the consultation process

for the revision of the ESRS standards.

This followed from the EU’s Omnibus

Simplification Package, aimed to simplify

sustainability reporting for companies by

reducing the number of mandatory data

points, clarifying provisions, and

streamlining requirements.

While we have taken advantage of the ESRS

‘Quick Fix’ – a temporary relief package in

force until the revised standards are finalized

– we remain fully committed to the principles

of sustainability reporting. Extensive and

accurate data on our supply chain and

customers, as well as on our own organization,

helps us understand our impact and that of

our ecosystem, and therefore identify how

best to manage it.

Looking ahead

Looking ahead to 2026, we anticipate

total net sales of between €34 billion and

€39 billion. The expected gross margin is

between 51% and 53%, alongside an

annualized effective tax rate of around 17%.

Starting with our EUV business, we expect

revenues to increase significantly in 2026 as

a result of the dynamics in advanced Logic

and DRAM. For non-EUV, we anticipate that

revenues for 2026 will be similar to 2025.

Finally, in our service and field option sales

business, we expect another year of revenue

growth, driven by our growing EUV installed

base and our customers’ plans for

performance upgrades to support their

rapidly increasing capacity requirements.

In line with our 2024 Investor Day

announcements, we expect a 2030 revenue

opportunity between €44 billion and €60

billion with a gross margin expected

between 56% and 60%.

We maintain our financing policy – a solid

capital and liquidity structure, based on

which we will continue to invest in our

business and expect to return significant

amounts of cash to our shareholders through

growing dividends and share buybacks.

In summary, our long-term outlook remains

robust, supported by the combination of

strong market dynamics and a solid strategic

roadmap for our products and services.

Roger Dassen

Executive Vice President and Chief Financial Officer

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Financial performance KPIs

Sales	Profitability	Liquidity
Total net sales	Gross profit	Cash and cash equivalents and short-term investments (year end)
€32.7bn	17.3bn	€13.3bn
2024: €28.3bn	2024: 14.5bn	2024: €12.7bn
Net system sales	Income from operations	Net cash provided by operating activities
€24.5bn	11.3bn	€12.7bn
2024: €21.8bn	2024: 9.0bn	2024: €11.2bn
Net service and field option sales	Net income	Free cash flow2
€8.2bn	9.6bn	€11.0bn
2024: €6.5bn	2024: 7.6bn	2024: €9.1bn
Sales of lithography systems (in units)1	Earnings per share (basic)
327	24.73
2024: 418	2024: 19.25
EUV systems recognized (in units)
48
2024: 44	1.
	2.

All values are in Euros.

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Financial performance KPIs (continued)

| Operating results of 2025 compared to 2024 | | --- || Year ended December 31 (€, in millions) | 2024 | %1 | 2025 | %1 | % Change | | --- | --- | --- | --- | --- | --- | | Net system sales | 21,768.7 | 77.0 | 24,474.3 | 74.9 | 12.4 | | Net service and field option sales | 6,494.2 | 23.0 | 8,193.0 | 25.1 | 26.2 | | Total net sales | 28,262.9 | 100.0 | 32,667.3 | 100.0 | 15.6 | | Cost of system sales | (10,406.9) | (36.8) | (11,384.0) | (34.8) | 9.4 | | Cost of service and field option sales | (3,364.0) | (11.9) | (4,025.3) | (12.3) | 19.7 | | Total cost of sales | (13,770.9) | (48.7) | (15,409.3) | (47.2) | 11.9 | | Gross profit | 14,492.0 | 51.3 | 17,258.0 | 52.8 | 19.1 | | Research and development (R&D) costs | (4,303.7) | (15.2) | (4,698.8) | (14.4) | 9.2 | | Selling, general and administrative (SG&A) costs | (1,165.7) | (4.1) | (1,257.8) | (3.9) | 7.9 | | Income from operations | 9,022.6 | 31.9 | 11,301.4 | 34.6 | 25.3 | | Interest and other, net | 19.8 | 0.1 | 104.7 | 0.3 | 428.8 | | Income before income taxes | 9,042.4 | 32.0 | 11,406.1 | 34.9 | 26.1 | | Income tax expense | (1,680.6) | (5.9) | (2,013.4) | (6.2) | 19.8 | | Income after income taxes | 7,361.8 | 26.0 | 9,392.7 | 28.8 | 27.6 | | Profit from equity method investments | 209.8 | 0.7 | 216.7 | 0.7 | 3.3 | | Net income | 7,571.6 | 26.8 | 9,609.4 | 29.4 | 26.9 |

1.As a percentage of total net sales.

For a comparison of ASML’s operating results for the year ended December 31, 2024, with the year ended<br><br>December 31, 2023, please see Financial performance – Performance KPIs – Operating results of 2024<br><br>compared with 2023 of ASML’s Annual Report on Form 20-F for the year ended December 31, 2024.

Total net sales

In 2025, total net sales increased by €4.4 billion,

representing a 15.6% year-over-year increase. This

growth was driven by a 12.4% increase in net system

sales and a 26.2% increase in net service and field

option sales compared to 2024.

Total net sales growth (in billions)

242

In Logic, net sales increased by €2.9 billion, primarily

driven by leading-edge foundry growth in support of

strong AI demand and our customers building capacity

for their next nodes.

In Memory, net sales decreased by €0.2 billion,

primarily reflecting a continuation of high Memory

demand following strong growth in 2024. This momentum

is fueled by investment in high-bandwidth memory and

DDR5 to support AI-related applications, which remain

a key growth driver in the Memory market.

Net service and field option sales increased mainly

due to the growing installed base of systems, higher

levels of lithography tool use for certain customers,

and more NXE field upgrades.

Increase on previous year

15.6%
Net sales
12.4%
Net system sales
26.2%
Net service and field<br><br>option sales
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---	---	---	---	---	---
At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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Financial performance KPIs (continued)

Net sales (in billions)

The increase in total net sales was primarily driven by

greater NXE and NXT immersion adoption supported

by leading-edge foundry investments for AI demand,

EXE systems being delivered to and installed at

more customers, and higher service and field option

sales. This was partially offset by a decrease in ArF dry,

KrF and i-line sales volumes. We recognized four EXE

and 44 NXE systems in sales in 2025 compared to two

EXE and 42 NXE systems in 2024. Our system sales

across our DUV technologies decreased from 374 units

in 2024 to 279 in 2025.

The increase in net service and field option sales was

primarily due to the growing installed base, higher levels

of lithography tool use for certain customers and more

NXE field upgrades.

Gross profit (in millions) and gross margin (in %)

876

Gross profit and gross margin increased, mainly driven

by a favorable NXE product mix and higher net service

and field option sales and margins. These positive effects

on gross margin were partially offset by the dilutive

impact of EXE systems recognized in sales.

Research and development costs (in millions)

R&D costs totaled €4,698.8 million in 2025, up from

€4,303.7 million in 2024. This increase reflects continued

investments across our EUV, DUV and metrology and

inspection systems, and computational lithography, all of

which support the development of our holistic lithography

solutions. In 2025, R&D efforts were primarily focused on:

•Investments in the development of the NXE:3800E and

NXE:3800F systems, and further improving availability

and productivity of our NXE installed base systems.

•Investments in the development of our EXE systems to

support future nodes for both Logic and DRAM customers.

•Continued investment in the next-generation

lithography systems, to increase productivity and

overlay in critical DUV layers (NXT:2150i), increase

productivity in KrF layers (NXT:870B) and make a next

step in cost effectiveness for our i-line customers and

investing in packaging portfolio (XT:260).

•Continued investment in e-beam inspection, e-beam

metrology and YieldStar optical metrology. In addition,

executing our multibeam inspection roadmap and

continuously expanding our investment in the holistic

software applications space.

Performance_KPI's_Pg2_v3.jpg

€4.7 billion

R&D costs

9.2%

Increase in R&D costs

on previous year

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Financial performance KPIs (continued)

Selling, general and administrative costs (in millions)

Selling, general and administrative (SG&A) costs increased

by 7.9% year-over-year, primarily due to higher average

wages and salaries per FTE, and continued investments

in our Community Partnership Program.

Income taxes (in millions)

The effective tax rate (ETR) decreased to 17.7% in 2025,

compared to 18.6% in 2024. This reduction is primarily

due to a correction for a historic tax position recognized

in 2024 that pertained to multiple years, for which the

underlying tax position has a lower impact in 2025.

Net income and earnings per share

Net income for 2025 amounted to €9,609.4 million,

representing 29.4% of total net sales and €24.73

basic net income per ordinary share. This compares

to €7,571.6 million, or 26.8% of total net sales, and

€19.25 basic net income per ordinary share in 2024.

The increase in basic net income per ordinary share

was primarily driven by higher net income.

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Financial performance KPIs (continued)

Cash flow analysis

We continued to invest significantly in next-generation technologies to secure future growth opportunities.

These investments required substantial cash outflows in net working capital, capital expenditures, and R&D.

At the same time, we remained committed to returning cash to our shareholders through dividends and the

share buyback program.

Year ended December 31 (€, in millions)	2024	2025
Cash and cash equivalents, beginning of period	7,004.7	12,735.9
Net cash provided by (used in) operating activities	11,166.2	12,658.5
Net cash provided by (used in) investing activities	(2,609.3)	(3,777.8)
Net cash provided by (used in) financing activities	(2,832.1)	(8,670.5)
Effect of changes in exchange rates on cash	6.4	(30.1)
Net increase (decrease) in cash and cash equivalents	5,731.2	180.1
Cash and cash equivalents, end of period	12,735.9	12,916.0
Short-term investments, end of period	5.4	405.9
Cash and cash equivalents and short-term investments	12,741.3	13,321.9
Purchases of property, plant and equipment and intangible assets	(2,083.1)	(1,631.2)
Free cash flow1 (Non-GAAP measure)	9,083.1	11,027.3

1.Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities (2025: €12,658.5 million and 2024:

€11,166.2 million) minus purchase of property, plant and equipment (2025: €1,573.6 million and 2024: €2,067.2 million) and purchase of

intangible assets (2025: €57.6 million and 2024: €15.9 million).

Net cash provided by (used in) operating activities

Net cash provided by operating activities increased by €1,492.3 million compared to 2024. This was mainly due to an

increase in net income of €2,037.8 million, which is partially offset by an increase in working-capital.

Net cash provided by (used in) investing activities

Net cash used in investing activities increased by €1,168.5 million compared to 2024, primarily due to the €1,302.2

million investment in Mistral in 2025. This was partially offset by a reduction in capital expenditures, with cash

outflows for property, plant, and equipment decreasing from €2,067.2 million in 2024 to €1,573.6 million in 2025.

Net cash provided by (used in) financing activities

The net cash used in financing activities increased by €5,838.4 million compared to 2024. This was primarily driven

by a €5,450.0 million increase in share repurchases under our share buyback program, the repayment of an

outstanding €1,000.0 million bond that was due on December 6, 2025, and a €97.4 million increase in total dividends

paid. These outflows were partially offset by the issuance and repayments of Euro Commercial Paper, which

generated a net cash inflow of €689.2 million.

As of December 31, 2025, ASML has sufficient capital for the company’s present obligations.

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Long-term growth opportunities

Trend information

Looking to 2026, we expect full-year revenue between

€34 billion and €39 billion and gross margin between

51% and 53%.

This outlook has strengthened significantly in the final

months of 2025, mainly due to the anticipated increase

and acceleration of capacity expansion plans by our

advanced Logic and DRAM customers to meet the

strong end-market demand driven by AI.

Looking at market segments, we expect Logic-related

revenues to remain strong and Memory revenues to be

significantly higher compared to 2025.

We anticipate our EUV revenue to be significantly higher,

driven by advanced node ramps. Our non-EUV revenue

is expected to be similar to 2025.

With our net service and field option sales, we expect

another year of growth, primarily due to increasing

service revenue from our growing EUV installed base

and our customers’ plans for productivity upgrades.

We have been preparing for growth, and our capacity

planning is continuing while we work with our supply

chain to support a multi-year ramp.

Our expectations and guidance for the first quarter of

2026 can be summarized as follows:

•Total net sales between €8.2 billion and €8.9 billion

•Gross margin between 51% and 53%

•R&D costs of around €1.2 billion

•SG&A costs of around €0.3 billion.

The trends, expectations and guidance discussed

above are subject to risks and uncertainties.

looking statements

Long-term growth opportunity for 20301

At our November 2024 Investor Day, we provided an

update on our long-term growth opportunity for 2030.

The semiconductor industry remains strong and AI is

expected to create further opportunity.

Our industry will require major innovations to address the

anticipated cost and power consumption challenges of

AI and this will further boost the industry roadmap in a

product mix shifting toward advanced Logic and DRAM.

Our customers remain at the core of our strategy, and

we believe that lithography will remain at the heart of their

innovation. We also anticipate that an increased number

of critical lithography exposures for advanced Logic and

Memory processes will continue to support our

customers in addressing their challenges.

We expect that our ability to 1) scale our EUV technology

well into the next decade, 2) extend holistic lithography

into supporting 3D front end integration and 3) improve

the performance and cost effectiveness of our EUV and

DUV products will continue to address all our customers’

needs with a flexible and versatile portfolio.

ASML values the strong industry partnerships which are

critical to our success and our collective commitment to

a leadership position in ESG.

Based on our modelling of the different scenarios we

expect global semi sales to grow at 9% CAGR

(2025-2030) and surpass $1 trillion by 2030.

This translates into an expected overall wafer demand

growth of 780K wafer starts per month per year

(2025-2030), on average. The rise of AI as a leading

end driver also implies a positive mix-shift in the wafer

demand profile from litho spending perspective. We

expect advanced Logic and DRAM to drive further

EUV litho exposures and spending.

For the period from 2025 to 2030, for advanced

Logic, we expect an EUV litho spending CAGR of

10-20% and for DRAM, we expect an EUV litho

spending CAGR of 15-25%.

This expected growth in semiconductor end markets

and increasing lithography spending on future nodes are

expected to fuel demand for our products and services.

1.Long-term growth opportunity for 2030 as presented during our Investor Day in November 2024.

Based on different market and lithography intensity

scenarios, we see an opportunity to achieve 2030 annual

revenue between approximately €44 billion and €60

billion with gross margin between approximately 56%

and 60%.

We expect to continue to return significant amounts

of cash to our shareholders through a combination

of growing dividends and share buybacks.

business strategy

Long-term models as presented<br><br>at 2024 Investor Day
Total sales opportunity (in €bn)	2024<br><br>Investor<br><br>Day
	Sales<br><br>2030
High scenario
EUV sales	32
Non-EUV sales (lithography and M&I*)	15
Installed base management**	13
Total	60
Moderate scenario
EUV sales	26
Non-EUV sales (lithography and M&I*)	14
Installed base management**	12
Total	52
Low scenario
EUV sales	22
Non-EUV sales (lithography and M&I*)	11
Installed base management**	11
Total	44
* M&I: Metrology and inspection.<br><br>** Installed base management equals our net service and field<br><br>option sales.

Risk and security_v3.jpg

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Risk and

security

61	Understanding ASML’s risk<br><br>management framework
63	How we manage risk
66	Risk factors
74	Information security

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Understanding ASML’s risk management framework

An Lommers

In this Q&A with An Lommers,

ASML’s Head of Risk, Business

Assurance and Security (RBA&S),

we explore the company’s approach

to risk management in a dynamic

global environment.

Q	Why is it so important for<br><br>ASML to manage risks?

It is essential for safeguarding our

company’s long-term resilience and success.

By proactively identifying and addressing

potential threats – such as those from

economic shifts, geopolitical changes,

technological advances or regulatory

developments – we can avoid costly

disruptions, avoid non-compliance, protect

our reputation and remain competitive by

staying ahead of the game.

Effective risk management enables better-

informed decisions, fosters greater trust

among our stakeholders, and supports

the ability to identify new opportunities for

growth and innovation. In today’s rapidly

changing global landscape, having strong

risk management practices is what helps us

keep growing and reach our strategic goals.

Q	How does ASML manage its<br><br>risks at an organizational level?

We have an enterprise risk management

(ERM) framework in place that is designed

to be fully integrated into how we work

every day and how we plan for the future.

We aim to make risk management a natural

part of our business by setting clear

standards, supporting governance, and

looking for ways to get better at managing

risks and meeting compliance requirements.

Q	What is the main purpose of<br><br>risk management at ASML?

First and foremost, it’s about helping

our company achieve its business objectives

in a responsible way. Our ERM process is

executed continuously, to make sure risk

identification and mitigation are timely and

effective, which enables our leaders to

make best-informed decisions.

Q	Could you explain the structure<br><br>of the ERM process at ASML?

As Head of RBA&S, I am responsible for the

development and maintenance of our ERM

framework, reporting to the CFO and Audit

Committee. Our approach is systematic – we

follow the ISO 31000:2018 standard, which

includes overseeing security functions and

compliance processes.

We take a mixed approach – our ERM

process merges top-down oversight of

company-wide risks with bottom-up

insights from teams in the organization,

so that risks are identified and managed

at the appropriate levels. We are

continuously looking for ways to improve

this process by learning from the latest

insights and using best practices.

Q	What exactly is the ASML<br><br>risk universe?

Think of it as a big, consolidated map of

the main risks that could affect our business

goals. It covers 31 risk categories grouped

under the risk types Strategic, Operations,

Finance and reporting and Compliance,

which helps us to provide a consistent

approach for risk assessments across

the company.

Q	How does ASML adapt to<br><br>new and emerging risks?

Together with

our partners, we

protect ASML and

its stakeholders,

ensuring ASML

can execute

its strategy.”

An Lommers

Head of RBA&S

We continually assess and adjust our

risk responses to align with our risk appetite

and corporate priorities, ensuring we can

respond to a dynamic business environment.

We regularly check in on our risk universe

and keep track of any changes, with the

Compliance, Ethics, Security and Risk

Committee (CESR) reviewing it every quarter.

This way, we are making sure our plans for

handling risk fit with what matters most to

us as a company, so we can react quickly

whenever things shift in our dynamic

business environment.

ASML_Strat-report_Risk-and-security_An-Lommers_Image-v2.jpg

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Understanding ASML’s risk management framework (continued)

An Lommers

Q	What are examples of<br><br>risks ASML faces in today’s<br><br>global landscape?

Our risk landscape is constantly evolving

in response to changes both within the

industry and on the world stage. Geopolitical

volatility, for example, is creating a push

for technological sovereignty, which could

result in a fragmented global ecosystem,

particularly in the semiconductor value chain.

One of our main concerns is that future trade

restrictions – whether pertaining to raw

materials, technology, systems or investments

– may further limit our ability to source critical

parts or to sell and service our systems for

certain customers. Navigating the ever-

evolving landscape of regulations adds to

the challenge of maintaining compliance.

Q	How do economic<br><br>uncertainties and market<br><br>volatility impact ASML?

The global economy directly influences

demand in the semiconductor industry,

and consequently, demand for our products

and services. Economic volatility and typical

semiconductor cycles keep us vigilant and

adaptable in our operational planning.

Q	Why is information protection<br><br>so important for ASML?

Our innovation ecosystem – and our ability to

protect the know-how and intellectual property

that underpin it – are the bedrock of our

leadership in the market. However, there’s

mounting pressure in this area, both for us and

for our open innovation partners. Also, we are

not immune to cyber and other security threats,

which is why we invest heavily in robust

protection and detection measures, and

continuously monitor the risks involved.

Q	What growth challenges<br><br>is ASML encountering as<br><br>it looks to the future?

Despite the uncertainties and volatility facing

our industry, the long-term outlook for the

semiconductor market remains robust,

signaling potential growth opportunities

ahead for ASML.

For risk management, these potential growth

opportunities and associated challenges

require a proactive, forward-thinking

approach. We must not only anticipate

and mitigate traditional operational risks,

but also adapt our frameworks to account

for evolving workforce dynamics and supply

chain complexities.

Strengthening our resilience against disruptions

– whether from market fluctuations, talent

shortages or geopolitical events – is an

integral part of our risk management strategy.

This means investing in scenario planning,

diversifying suppliers and developing agile

talent pipelines, with the goal to pursue

growth, while remaining vigilant and prepared

for the risks that accompany it.

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How we manage risk

ASML manages risks through an enterprise risk management (ERM) framework

that integrates risk management into our daily business activities and strategic planning.

Enterprise risk management

ASML_Strategic-Report_Risk-and-Security_How-we-manage-risk_1_Bg_v1.jpg

ASML’s ERM framework is designed to enable a well-

defined governance structure and a robust ERM process.

The Risk and Business Assurance function drives the

ERM process and associated activities across ASML.

We follow a systematic approach to identify, manage

and monitor risks in pursuit of our business objectives

by setting standards and enabling management to

maintain and continuously improve our governance,

risk management, internal control and compliance.

The framework enables us to identify opportunities

to achieve our objectives and sustainable long-term

value creation.

ERM is a continuous process. Its related activities are

periodically repeated to identify and address risks in a

timely fashion, and ensure outcomes are relevant for

effective decision-making. Our Head of RBA&S reports

to the CFO and Audit Committee and is responsible for

leading the development and maintenance of the ERM

framework and the implementation of the ERM process.

We have adopted the International Organization for

Standardization (ISO) 31000:2018 standard as the basis

for our ERM activities. In addition, the Head of RBA&S

is responsible for leading the security function and for

developing and maintaining the compliance process.

Risk management governance structure
Supervisory Board			Audit Committee
Request to investigate<br><br>specific risk topics	•Deep dives on<br><br>selected topics<br><br>•Risk topics feedback			•Assertion on control<br><br>effectiveness<br><br>•Quarterly progress reporting
Board of Management
Compliance, Ethics, Security and Risk<br><br>Committee (CESR)<br><br>Risk oversight		Disclosure Committee<br><br>Internal Control Committee
•Risk appetite<br><br>•Risk management policy<br><br>•CESR sub-committees<br><br>(governance)	•Risk assessment results<br><br>•Risk response progress<br><br>•Incidents			•Control effectiveness
Risk owners

Supervisory Board and Audit Committee

The Supervisory Board (SB) provides independent

oversight of management’s response and effectiveness

on critical risk areas. The SB’s Audit Committee provides

independent oversight of the ERM process and timely

follow-up of priority actions based on quarterly

progress updates.

Board of Management

The Board of Management (BoM) is responsible for

managing internal and external risks related to our

business activities and for overseeing compliance

with applicable laws and regulations.

Compliance, Ethics, Security and Risk Committee

The Compliance, Ethics, Security and Risk Committee

(CESR) is the central risk oversight body that reviews,

manages and controls risks in the ASML risk universe.

It also approves the risk appetite, risk management

policies and risk mitigation strategies. The CESR is

chaired by the CFO and comprises senior management

representatives across ASML, including the COO and

CSPO (Chief Strategic Sourcing & Procurement Officer).

Disclosure Committee

The Disclosure Committee is chaired by the Head

of Finance and advises the Company, and its CEO and

CFO in overseeing ASML’s disclosure activities and

compliance with applicable disclosure requirements

arising under Dutch and US law, applicable stock

exchange regulations and other regulatory requirements.

Internal Control Committee

The Internal Control Committee is chaired by the

Corporate Chief Accountant and advises the Disclosure

Committee, CEO and CFO in their assessment of our

internal control over financial reporting and related

disclosures, under section 404 of the Sarbanes-Oxley

Act. The Chair of the Internal Control Committee updates

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How we manage risk (continued)

the CEO and CFO on the progress of this assessment.

The Chair also includes this update in the Internal Control

ASML_Strategic-Report_Risk-and-Security_How-we-manage-risk_Bg_v1.jpg

Committee’s report to the Audit Committee.

Risk owners

Risk owners monitor the development of risks across

the ASML risk universe and drive risk response across

ASML according to requirements defined by the CESR.

ASML risk universe

The ASML risk universe is a consolidated overview of

the risks that may have a material adverse impact on

our ability to achieve our business objectives. The risk

universe enables us to have a consistent approach to

risk assessments across ASML. We take into account a

broad range of internal and external information sources

such as macroeconomic and industry trends, relevant

guidelines and legislation, and stakeholders’ needs and

expectations in all areas. The risk universe is updated

based on internal and/or relevant external developments.

ERM process

The ERM process provides a holistic approach

combining business and experts’ perspectives

to identify, evaluate and manage risks at the right

level. We continuously seek to improve it based on

experience, developments and best practices.

The results of risk assessments and the potential

impact of external trends are captured in the ASML

risk landscape. As we operate in a dynamic environment,

risk exposures are subject to change. The ASML risk

landscape is reviewed and updated by the CESR each

quarter. Risk assessments are carried out to assess the

risks in ASML’s risk universe. We define strategies to

address relevant risks and set priorities. Our risk responses

aim to mitigate the risks identified in the ASML risk

landscape to the level defined by the risk appetite.

Risk management process

Risk assessment		Risk response
	Top-down risk assessment<br><br>CESR / Risk owners / Emerging risks		Coordination and follow-up<br><br>Risk owners	Risk identification	Risk landscape	Risk appetite
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Risk analysis
Risk evaluation		Risk treatment

Risk universe

Reporting

Bottom-up risk assessment<br><br>Business	Execution<br><br>Action owners
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How we manage risk (continued)

Risk type
	Strategic	Compliance
	Operations	Other
	Finance and reporting		Overview of risk factors
---	---
Risk<br><br>type	Risk factor
	Our future success depends on our ability to respondin a timely mannerto commercial and technological developments in the semiconductor industry
	The success of new productintroductionsis uncertain and depends on our ability to successfully execute our R&Dprograms
	We face intense competition
	The semiconductor industry can be cyclical, and we may be adversely affected by any downturn
	We derive most of our revenues from the sale of a relatively small number of products
	Failure to adequately protect intellectual property could harm our business
	Defending against intellectual property claims brought by others could harm our business
	We are exposed to economic, geopolitical and other developments in our international operations
	We may be unable to make desirable acquisitions, to invest successfully, or to integrate successfully any businesses weacquire
	A high percentage of net sales is derived from a few customers
	We may not be able to achieve our ESG objectives or adapt and respond in a timely manner to emerging ESG expectations and regulations
	We depend on our ability to manage the growth of our organization and attract and retain a sufficient number of adequately educated and skilled employees
	We may face challenges in managing the industrialization of our products and bringing them to high-volume production
	We are highly dependent on the performance of a limited number of critical suppliers of single-source key components
	We are dependent on the continued operation of a limited number of manufacturing facilities
	Our operations expose us to health, safety and environment risks
	Cybersecurity and other security incidents, or disruptions in our processes or technology systems, could materially adversely affect our business operations
	We are exposed to risks related to the use of artificial intelligence
	We face challenges to meet expected demand
	We are exposed to financial risks including liquidity risk, interest rate risk, counterparty credit risk, foreign exchange risk and inflation risk
	Changes in taxation could affect our future profitability
	We are subject to regulatory and compliance obligations in the various countries where we operate and the complexity of compliance requirements increases
	Restrictions on shareholder rights may dilute voting power
	We may not declare cash dividends, conduct share buyback programs at all or in any particular amounts in any given year

ASML_Strat-report_Risk_Overview-of-risk-factors_Image-v1.jpg

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Risk factors

The risk factors outlined in this section<br><br>are categorized into the following types:<br><br>Strategic, Operations, Finance and<br><br>reporting, Compliance, and Other.<br><br>Each of these risks, along with the<br><br>associated events described, could have<br><br>a material adverse impact on our business,<br><br>financial position, operating results,<br><br>and reputation. Additionally, there may<br><br>be risks currently unknown to us, or risks<br><br>we presently consider immaterial, that<br><br>could become significant over time.<br><br>Some of the factors and events discussed<br><br>may have occurred previously. Any such<br><br>disclosure does not constitute<br><br>a representation that such factors, events,<br><br>or contingencies have or have not occurred<br><br>in the past; it is provided because their<br><br>potential future occurrence could have a<br><br>material adverse effect on our business.<br><br>Moreover, many of these risks may be<br><br>exacerbated by global developments, such<br><br>as wars, geopolitical tensions, inflation,<br><br>industry downturns, and international<br><br>responses – including new regulations<br><br>or tariffs – alongside broader adverse<br><br>economic and business conditions.	Strategic
	Our future success depends on our ability to respond<br><br>in a timely manner to commercial and technological<br><br>developments in the semiconductor industry	The success of new product introductions is<br><br>uncertain and depends on our ability to<br><br>successfully execute our R&D programs	We face intense competition
	Our ability to develop new technologies and improve existing ones<br><br>– across products and services – relies on several key factors.<br><br>These include the success of our own and our suppliers’ R&D<br><br>efforts, as well as our ability to complete product development<br><br>and design efficiently and ahead of competitors.<br><br>If the technologies we pursue to help customers produce<br><br>smaller, more energy-efficient chips are less effective or more<br><br>costly than those of our competitors, our business could be<br><br>negatively impacted. Similarly, if customers choose not to adopt<br><br>our innovations or shift toward architectures that rely less on<br><br>lithography, our competitive position may weaken. For instance,<br><br>the success of our EUV 0.55 NA (High NA) technology – which<br><br>we view as essential to advancing Moore’s Law – depends on<br><br>continued technical progress by both us and our suppliers.<br><br>We invest heavily in developing and launching new and enhanced<br><br>technologies, products, and services. If these efforts fail, or if<br><br>customers do not adopt them, or if alternative solutions gain<br><br>traction, our competitive edge and financial returns may suffer.<br><br>This could also lead to impairment charges on capitalized<br><br>technologies, including prototypes, or costs related to obsolete<br><br>inventory – especially as technological complexity increases.<br><br>Due to the high complexity and cost of our systems, customers<br><br>may opt for existing technologies over newer ones, or delay<br><br>investments if they are not economically justified or aligned<br><br>with their product cycles.<br><br>Moreover, global economic conditions and fluctuations in the<br><br>semiconductor market influence customer investment decisions,<br><br>creating uncertainty around the timing and demand for new<br><br>systems. This can slow the overall transition to new nodes<br><br>and technologies.<br><br>Finally, we rely on our suppliers to maintain their development<br><br>roadmaps. Any delays – whether due to technical challenges,<br><br>financial constraints, or other factors – can hinder our ability<br><br>to meet our own development timelines.	As our products become more complex, the cost and time<br><br>required to develop new products and technologies continue to<br><br>rise – a trend we expect to persist. Developing new technologies<br><br>demands substantial R&D investments from both ASML and our<br><br>suppliers. Suppliers may be unable or unwilling to commit the<br><br>necessary resources for continued (co-)development, which has<br><br>led and can continue to lead to ASML funding these R&D efforts<br><br>or limiting our own investment capacity.<br><br>If our R&D initiatives fail to deliver the desired technologies on<br><br>time or at all, we may struggle to launch new products, services,<br><br>or innovations – and risk not recovering our R&D expenditures.<br><br>Additionally, during periods of high customer demand, we may<br><br>need to prioritize production over R&D activities which may hinder<br><br>the advancement or success of new product introductions.	The semiconductor equipment industry is highly competitive.<br><br>Our competitiveness depends on our ability to develop new and<br><br>enhanced products and services that bring value to our customers<br><br>and are competitively priced and introduced on a timely basis – as<br><br>well as our ability to protect and defend our intellectual property,<br><br>trade secrets or other proprietary information.<br><br>We compete primarily with Canon and Nikon in respect of DUV<br><br>systems. Both have substantial financial resources and broad<br><br>patent portfolios. Each continues to offer products that compete<br><br>directly with our DUV systems, which may impact our sales or<br><br>business. In addition, adverse market conditions, long-term<br><br>overcapacity or a decrease in the value of the Japanese yen in<br><br>relation to the euro have increased and could continue to increase<br><br>price-based competition, resulting in lower prices and lower<br><br>sales and margins.<br><br>We also face competition from new competitors with substantial<br><br>financial resources, as well as from those driven by the ambition<br><br>of self-sufficiency in the geopolitical context. Furthermore, we<br><br>may face competition from alternative technological solutions<br><br>or semiconductor manufacturing processes.<br><br>We also compete with providers of applications that support or<br><br>enhance complex patterning solutions, such as Applied Materials<br><br>Inc. and KLA-Tencor Corporation. These applications compete<br><br>with our offerings, which is a significant part of our business.
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Risk factors (continued)

Strategic (continued)
The semiconductor industry can be cyclical, and we may be adversely affected by any downturn		We derive most of our revenues from the sale of a<br><br>relatively small number of products	Failure to adequately protect intellectual property<br><br>could harm our business
The semiconductor industry has historically been cyclical. As<br><br>a supplier to the global semiconductor industry, we are subject<br><br>to its business cycles. The timing, duration and volatility are difficult<br><br>to predict and can have a significant impact on semiconductor<br><br>equipment manufacturers including ASML. Newer entrants to the<br><br>industry, including Chinese semiconductor manufacturers, could<br><br>increase the risk of cyclicality in the future. Certain key end-market<br><br>customers – Logic and Memory – exhibit different levels of<br><br>cyclicality and different business cycles. Cyclicality may be<br><br>worsened by the geopolitical situation – for example, if countries<br><br>increase semiconductor capacity for higher levels of self-<br><br>sufficiency, thereby creating global overcapacity.<br><br>Sales of our lithography systems, services and other holistic<br><br>lithography products depend in large part on the level of capital<br><br>expenditures by semiconductor manufacturers. These in turn<br><br>are influenced by industry cycles, the drive for technological<br><br>sovereignty and a range of competitive and other factors, including<br><br>semiconductor industry conditions and prospects. The timing and<br><br>magnitude of capital expenditures of our customers also impact<br><br>the available production capacity of the industry to produce chips,<br><br>which can lead to imbalances in the supply and demand.<br><br>Reductions or delays in capital expenditures by our customers,<br><br>or incorrect assumptions by us about our customers’ capital<br><br>expenditures, could adversely impact our business.<br><br>We make various assumptions about future demand in our<br><br>financial models and our capital expenditures and planning for<br><br>production capacity. To the extent that actual results prove to<br><br>be materially different from our assumptions, we may have<br><br>overcapacity, capacity constraints, or may have allocated capital<br><br>expenditure and resources to make products that are not in demand<br><br>by customers (at the expense of products that are in demand)<br><br>and our actual results could differ substantially from those implied<br><br>by our financial models.	Capital expenditures by our customers may not continue at<br><br>current levels and may decline. Capital expenditures by some<br><br>customers have declined compared to prior years and we have<br><br>experienced changes in timing of orders from certain customers,<br><br>and we are subject to uncertainty in future customer demand.<br><br>The global economic environment, including inflation, interest<br><br>rates and geopolitical events, contributes to this uncertainty.<br><br>An uncertain global economy frequently leads to reduced consumer<br><br>and business spending, and could cause our customers to decrease,<br><br>cancel or delay their orders – and we have experienced customers<br><br>scaling back their capacity additions. High interest rates and<br><br>volatility in financial markets could make it more difficult for our<br><br>customers to raise capital, whether debt or equity, to finance<br><br>their purchases of equipment, including the products we sell.<br><br>The foregoing could lead to reduced demand, which may<br><br>adversely affect our product sales and revenues and may<br><br>harm our business and operating results.<br><br>As we have significantly increased our organization in previous<br><br>years in terms of employees, infrastructure, manufacturing capacity<br><br>and other areas, it would be difficult to adjust our costs adequately<br><br>in a timely manner in the event of an industry downturn.<br><br>If we are unable to adapt appropriately and in a timely manner<br><br>to changes resulting from macroeconomic conditions, our business,<br><br>financial conditions or results of operations may be materially and<br><br>adversely affected.	We derive most of our revenues from the sale of a relatively small<br><br>number of lithography systems (327 units in 2025, 418 units in<br><br>2024 and 449 units in 2023). As a result, the timing of shipments<br><br>and recognition of system sales for a particular reporting period,<br><br>as a result of shipment delays or other factors, may have a material<br><br>impact on our results of operations in that period, and this impact<br><br>is greater as prices for our systems increase. In recent years, we<br><br>have used fast shipments for some customers, which allows us to<br><br>deliver systems more quickly by having some final testing and<br><br>formal acceptance carried out on customer sites instead of at our<br><br>own facilities. This typically leads to a delay of revenue recognition<br><br>for those shipments until formal customer acceptance, which can<br><br>impact comparability of our results of operations from period<br><br>to period.<br><br>In addition, our installed base revenues are impacted by the<br><br>number of systems we sell, and other factors; for example,<br><br>customers may perform more of these services themselves,<br><br>find other third-party suppliers to provide them, or we may be<br><br>limited by export control restrictions.	We rely on intellectual property (IP) rights such as patents, copyrights<br><br>and trade secrets to protect our proprietary technology. However, we<br><br>face the risk of such protective measures proving inadequate and we<br><br>could suffer material harm because, among other matters:<br><br>1.IP laws may not sufficiently support our proprietary rights or<br><br>may change adversely in the future.<br><br>2.Our agreements (e.g. confidentiality, licensing) with our<br><br>customers, employees and technology development partners<br><br>and others to protect our IP may not provide sufficient<br><br>protection or may be breached or terminated.<br><br>3.Patent rights may not be granted or interpreted as we expect.<br><br>4.Patent rights will expire, which may result in key<br><br>technology becoming widely available, which may<br><br>harm our competitive position.<br><br>5.The steps we take to prevent misappropriation or infringement<br><br>of our proprietary rights may not be successful.<br><br>6.IP rights can be difficult to enforce in countries where the<br><br>application and enforcement of the laws governing such<br><br>rights may not have reached the same level compared with<br><br>other jurisdictions where we operate.<br><br>7.Third parties may be able to develop or obtain patents for<br><br>our own or for similar competing technology.<br><br>Legal proceedings may be necessary to enforce our IP rights<br><br>and the validity and scope may be challenged by others. Any<br><br>such proceedings may result in substantial costs and diversion<br><br>of management resources, and, in the event of decisions<br><br>unfavorable to us in proceedings, could result in significant<br><br>costs or have a significant impact on our business.<br><br>We have experienced and may in the future experience<br><br>misappropriation attacks by third parties or our employees,<br><br>including theft of IP. Such incidents may result in third parties<br><br>or others, without authorization, obtaining, copying, using or<br><br>disclosing our IP, despite our efforts to protect our rights.<br><br>Our suppliers face similar risks which could have a<br><br>consequential impact on us.
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Risk factors (continued)

Strategic (continued)
Defending against intellectual property claims<br><br>brought by others could harm our business	We are exposed to economic, geopolitical and other developments in our international operations.		We may be unable to make desirable acquisitions,<br><br>to invest successfully, or to integrate successfully<br><br>any businesses we acquire
In the course of our business, we have been and may be subject<br><br>to claims by third parties alleging that our products or processes<br><br>infringe upon their IP rights. If successful, such claims could limit<br><br>or prohibit us from developing our technology, and manufacturing<br><br>and selling our products.<br><br>Our customers may also be subject to claims of infringement<br><br>from third parties, including patent-holder companies, alleging<br><br>that our products used by such customers in the manufacturing<br><br>of semiconductor products and/or the processes relating to the<br><br>use of our products infringe on one or more patents issued to<br><br>such third parties. If such claims are successful, we could be<br><br>required to indemnify our customers for losses incurred by or<br><br>damages assessed against them as a result of such infringement.<br><br>We may incur substantial licensing or settlement costs to settle<br><br>claims or limit our exposure to the IP claims of third parties.<br><br>Patent litigation is complex and may extend for a protracted<br><br>period of time, giving rise to the potential for substantial costs<br><br>and diverting the attention of key management and technical<br><br>personnel. Potential adverse outcomes from patent litigation may<br><br>include payment of significant monetary damages, injunctive relief<br><br>prohibiting our manufacturing, exporting or selling of products,<br><br>reputational damage and/or settlement involving significant<br><br>payments by us.	Our business is subject to a range of export control restrictions,<br><br>sanctions, tariffs, and broader international trade regulations that<br><br>affect our ability to deliver systems, technology, and services.<br><br>Geopolitical tensions have already led – and may continue to lead –<br><br>to an increase in such restrictions. For example, deliveries to certain<br><br>countries, such as China, have been increasingly impacted by<br><br>export regulations, which impose requirements to obtain specific<br><br>licenses and approvals. Specifically, under Dutch, US and other<br><br>applicable laws, we are required to secure export licenses for<br><br>EUV systems, specific DUV immersion systems, and some of<br><br>our other products.<br><br>In addition, the US government has implemented trade measures<br><br>that include license requirements for transacting with certain<br><br>Chinese entities. These include license requirements for the sale or<br><br>transfer of US-origin items, as well as limitations on support by US<br><br>persons for non-US origin items destined for advanced-node fabs<br><br>in China. These measures have restricted, and may continue to<br><br>restrict, our ability to supply specific products and services, as we<br><br>do not control the licensing process or approval criteria. The scope<br><br>and list of restricted entities remain subject to change and may be<br><br>further expanded. Further, obtaining US licenses to authorize foreign<br><br>nationals to work on programs involving controlled US items has<br><br>become increasingly difficult in recent years.<br><br>A significant number of our customers and suppliers are located<br><br>outside of the US. Rise in tariffs increase our costs for importing<br><br>materials, parts and components and can negatively impact our<br><br>margins and reduce our competitiveness. Tariffs also increase the<br><br>cost for customers of importing our products, which could harm<br><br>customer demand for our products.<br><br>ASML is also subject to export control regulations in jurisdictions<br><br>outside the EU and US. Developments in multilateral and bilateral<br><br>treaties, national regulations, and trade, security, and investment<br><br>policies have already impacted – and may continue to impact – our<br><br>operations, as well as those of our suppliers and customers.	These developments, as well as a global push for technological<br><br>sovereignty, may lead to long-term shifts in global trade dynamics,<br><br>competition, and technology supply chains, which could potentially<br><br>affect our business and growth prospects. Customers in China<br><br>represented 29.1% of our 2025 total net sales and 36.1% of our<br><br>2024 net sales. Countries affected by export control restrictions<br><br>may also introduce countermeasures, which could result in<br><br>conflicting regulations and legal liabilities.<br><br>The semiconductor industry relies on raw materials that are controlled<br><br>by specific countries. In the current geopolitical climate, the risk of these<br><br>materials becoming restricted or unavailable is increasing, which could<br><br>affect our suppliers, customers, and ASML directly. For example, China<br><br>has imposed or issued directives to impose various export controls on<br><br>its products including certain minerals.<br><br>Geopolitical instability and potential nationalization of assets also<br><br>poses risks to our business. For instance, several of our facilities,<br><br>supply chain partners, and customers are located in Taiwan, which<br><br>has a unique international political status. Changes in cross-strait<br><br>relations, Taiwanese government policies, or broader political,<br><br>economic, or social developments could affect our ability to serve<br><br>customers in Taiwan – who represented 25.5% of our 2025 total<br><br>net sales and 15.4% of our 2024 total net sales.<br><br>Similarly, we have operations and customers in South Korea.<br><br>A deterioration in relations with North Korea or the outbreak of<br><br>conflict could disrupt our ability to serve such customers. Customers<br><br>in South Korea represented 25.0% of our 2025 total net sales<br><br>and 22.7% of our 2024 total net sales.<br><br>A limited portion of our suppliers, customers, and support teams<br><br>are based in Israel. Regional tensions have had limited impact but<br><br>could further impact our business operations.<br><br>We also plan to initiate sales and support operations in countries<br><br>where ASML does not currently have such operations, such as<br><br>India. As we expand into new markets, risks related to matters<br><br>such as regulatory compliance, intellectual property protection,<br><br>political and infrastructure challenges, talent acquisition and<br><br>cultural and social differences may be further amplified.	From time to time, we may acquire or make investments in<br><br>businesses, business lines or technologies to complement,<br><br>enhance, or expand our existing operations and product portfolio,<br><br>or to pursue strategic growth opportunities. However, these<br><br>transactions may not always deliver the expected financial or<br><br>strategic benefits and could disrupt our operations or hinder<br><br>our performance.<br><br>Even when transactions are finalized, integrating the acquired<br><br>business or technology can present significant risks – including<br><br>difficulties in aligning operations, retaining key talent, and merging<br><br>systems, processes, and cultures.<br><br>Acquisitions and investments may also place additional strain on<br><br>our management and operational resources, potentially diverting<br><br>attention from core business activities. Furthermore, acquired<br><br>entities may have compliance gaps or liabilities that are not<br><br>immediately apparent, and their existing controls may not meet<br><br>our standards.<br><br>In connection with acquisitions, antitrust and national security<br><br>regulators have imposed and may in the future impose conditions,<br><br>including requirements to divest assets or other conditions that<br><br>could make it difficult for us to integrate the businesses that we<br><br>acquire. Furthermore, we may have difficulty in obtaining, or be<br><br>unable to obtain, antitrust and national security clearances,<br><br>which could inhibit future desired acquisitions.<br><br>Additionally, acquisitions and investments often result in the<br><br>recognition of goodwill and intangible assets. These must be<br><br>reviewed periodically for impairment under accounting standards.<br><br>If impairment indicators arise, we may be required to adjust asset<br><br>valuations and record impairment charges, which could negatively<br><br>impact our financial results.
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Risk factors (continued)

Strategic (continued)			Operations
A high percentage of net sales is derived from a<br><br>few customers	We may not be able to achieve our ESG objectives or adapt and respond in a timely manner to emerging<br><br>ESG expectations and regulations		We depend on our ability to manage the growth of our<br><br>organization and attract and retain a sufficient number<br><br>of adequately educated and skilled employees
We sell our lithography systems to a relatively small number<br><br>of customers, making our business vulnerable to customer<br><br>concentration risk. The loss of any major customer, or a<br><br>significant reduction or delay in their orders, could materially impact<br><br>our financial performance. This risk is heightened by ongoing<br><br>consolidation within the semiconductor manufacturing industry.<br><br>Although our metrology and inspection systems and computational<br><br>lithography are contributing an increasing share of revenue, many<br><br>of these customers overlap with those purchasing our lithography<br><br>systems. As a result, while the ranking of our largest customers<br><br>may shift year to year, our sales remain concentrated among a<br><br>limited group.<br><br>Total net sales to our largest customer amounted to<br><br>€7,796.7 million, or 23.9% of total net sales in 2025, compared<br><br>with €4,682.4 million, or 16.6% of total net sales in 2024. In 2025,<br><br>38.0% of total net sales were made to our two largest customers.<br><br>The loss of any key customer, or a substantial change in their<br><br>purchasing behavior, could have a material adverse effect on<br><br>our business, financial condition, and operating results.	Companies are under growing scrutiny regarding their ESG<br><br>policies and practices. A wide range of stakeholders – including,<br><br>but not limited to, investors, capital providers, shareholder<br><br>advocacy groups, market participants, customers, suppliers,<br><br>regulators and local communities – are increasingly focused on<br><br>ESG-related issues. In certain jurisdictions where we operate, there is<br><br>heightened attention on making positive contributions to society and<br><br>minimizing negative environmental and social impacts throughout<br><br>the entire product lifecycle.<br><br>Not all stakeholders may agree or align with our ESG goals<br><br>and initiatives, and stakeholder expectations may shift over<br><br>time. Regulatory bodies and governments across the different<br><br>jurisdictions in which we operate may also hold conflicting views<br><br>on ESG practices and standards. Failing to meet our ESG<br><br>objectives or to respond effectively to evolving or conflicting<br><br>stakeholder expectations, regulations, practices and disclosure<br><br>requirements could harm our brand and reputation, hinder our<br><br>ability to attract and retain talent, increase costs, cause lower<br><br>sales, and negatively impact our operations and growth ambitions.<br><br>Our ESG sustainability strategy may not achieve the intended<br><br>results, and our estimates concerning the feasibility, timing and<br><br>cost of meeting stated goals are subject to risks and uncertainties.<br><br>We use offsets to help us meet some of our emissions targets.<br><br>Our ability to meet our ESG goals could be hindered by for instance<br><br>the availability of offsets at commercially reasonable terms.<br><br>The complexity of our technology and products may also limit our<br><br>ability to achieve certain aspects of our ESG goals – which also<br><br>depends heavily on our suppliers’ ability to reduce their ecological<br><br>footprints and on our customers’ ability to source renewable<br><br>electricity. If they fall short, we may not meet our targets. Similarly,<br><br>achieving our ESG goals depends on governments delivering on<br><br>their stated ambitions on decarbonization. Finally, customer<br><br>satisfaction with our ESG progress can influence demand.	The shift toward a low-carbon and circular economy, including<br><br>the reduction and abandonment of toxic materials, has led to<br><br>increased regulation, which may require changes to product<br><br>designs, impose technology restrictions, raise costs, and introduce<br><br>carbon taxes or pollution controls and may also result in supply<br><br>chain interruptions if we are not able to adapt in time. New laws<br><br>and regulations driven by environmental and social concerns may<br><br>affect us, our suppliers, and our customers, potentially resulting in<br><br>higher compliance costs and indirect costs across our value chain.<br><br>The regulatory landscape for ESG disclosure requirements<br><br>continues to evolve, potentially leading to non-compliance,<br><br>inconsistencies in data, incorrect ESG disclosures, and<br><br>increased scrutiny. This could lead to potential fines, litigation,<br><br>and/or reputational damage.<br><br>Read more in Sustainability statements – General disclosures –<br><br>Impact, risk and opportunity management	Our business depends significantly on our ability to attract and<br><br>retain employees in the long term, including a large number of<br><br>highly qualified professionals.<br><br>Our R&D programs, in particular, require a substantial number of<br><br>skilled employees. If we are unable to recruit, develop, and retain<br><br>enough qualified personnel, our ability to execute R&D effectively<br><br>and on schedule may be compromised.<br><br>Due to the unique and complex nature of our technology,<br><br>engineers with the necessary expertise are scarce and typically<br><br>not available from other industries. We invest heavily in training<br><br>our employees to work with our systems, making their retention<br><br>a critical factor in our success. The increasing complexity of our<br><br>products also means that new and existing employees face<br><br>longer learning curves.<br><br>Our suppliers face similar challenges in attracting and retaining<br><br>qualified talent, particularly for programs that support our R&D<br><br>and technology development. If they are unable to maintain the<br><br>necessary workforce, it could impact their technology roadmaps<br><br>and, in turn, affect our R&D efforts and timely delivery of components.<br><br>The growth of our organization, driven by strong customer demand,<br><br>has placed pressure on our ability to effectively manage our people,<br><br>facilities, operations, and resources. If we are unable to address<br><br>these challenges successfully, it could negatively impact our<br><br>operational performance and our reputation as an employer.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	70
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At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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Risk factors (continued)

Operations (continued)
We may face challenges in managing the<br><br>industrialization of our products and bringing them<br><br>to high-volume production	We are highly dependent on the performance of a limited number of critical suppliers of single-source key<br><br>components		We are dependent on the continued operation of a<br><br>limited number of manufacturing facilities
Successfully bringing new products to high-volume production<br><br>at a value-based price and in a cost-efficient manner depends on<br><br>our ability to manage product industrialization and control costs.<br><br>Customer adoption is closely tied to product performance in the<br><br>field. As our systems become more complex, the risk increases that<br><br>products may not meet development milestones, specifications, or<br><br>quality standards. If performance or quality falls short – particularly<br><br>in areas such as wafer capacity – demand may decline and<br><br>additional costs may arise.<br><br>Scaling newly developed products to full production requires<br><br>significant infrastructure expansion, including enhanced manufacturing<br><br>capabilities, increased component supply, and training of qualified<br><br>personnel. It may also require suppliers to scale their operations.<br><br>If we or our suppliers are unable to adapt accordingly, we may<br><br>face delays or limitations in introducing new technologies, products,<br><br>or enhancements, or in achieving high-volume production.<br><br>Even when industrialization is successful, reaching profitable<br><br>margins can take years. New technologies may not yield the same<br><br>margins as existing ones, and we may face challenges in adjusting<br><br>pricing and cost structures effectively. Additionally, new product<br><br>introductions can impact liquidity, as longer cycle times increase<br><br>working capital requirements. The growing complexity of our products<br><br>also demands greater upfront investment, and delays in revenue<br><br>recognition can negatively affect our cost structure and margins.<br><br>Furthermore, the increasing number of EUV systems in the field<br><br>requires expanded customer support capabilities. The ability to<br><br>efficiently manage shipments, maintenance, servicing, and<br><br>upgrades is critical to ensuring continued system productivity.<br><br>Any constraints in these areas could affect delivery timelines<br><br>and operational performance.	We depend on third-party vendors for the components and<br><br>subassemblies used in our systems, including their design. Many<br><br>of these parts are single-sourced or supplied by a limited number<br><br>of vendors. As our business has grown, so has our reliance on<br><br>single suppliers – particularly due to the highly specialized nature<br><br>of many components. This is especially true for EUV systems,<br><br>where the complexity and uniqueness of parts often make multi-<br><br>sourcing economically impractical.<br><br>In many cases, our sourcing strategy follows the principle of<br><br>“single sourcing, dual competence”. However, relying on a limited<br><br>group of suppliers introduces several risks – including potential<br><br>shortages, delays in obtaining components at acceptable costs,<br><br>and reduced control over pricing and quality. Supply disruptions<br><br>may arise from various causes, such as labor strikes, fires, energy<br><br>shortages, infrastructure access, pandemics, flooding, cyberattacks,<br><br>blockades, sabotage, or other natural or man-made disasters.<br><br>Such disruptions can delay the delivery of parts and subassemblies,<br><br>which in turn may delay our product shipments and negatively<br><br>impact our business.<br><br>For example, some suppliers have faced operational disruptions<br><br>due to (raw) material shortages and cyberattacks. Persistent delays<br><br>or an inability to secure timely deliveries – or any other circumstance<br><br>that requires us to find alternative sources – could significantly<br><br>hinder our ability to meet customer demand, damaging<br><br>relationships and materially impacting our business.<br><br>The number of lithography systems we are able to produce is limited by<br><br>the production capacity of one of our key suppliers, Carl Zeiss SMT, our<br><br>sole supplier of lenses, mirrors, illuminators, collectors and other critical<br><br>optical components (which we refer to as optics). We have an exclusive<br><br>arrangement with Carl Zeiss SMT. If this supplier became unable to<br><br>maintain and increase production levels, we could be unable to fulfill<br><br>orders. This could have a material impact on our business and damage<br><br>relationships with our customers. Furthermore, if Carl Zeiss SMT were<br><br>to terminate its supply relationship with us or be unable to maintain<br><br>production of optics over a prolonged period, we would effectively<br><br>cease to be able to conduct our business.	Occasionally, we experience supply constraints that affect<br><br>production. Both we and our suppliers continue to invest in<br><br>expanding capacity, but we may still fall short of meeting full<br><br>customer demand. Conversely, if demand decreases or fails to<br><br>match our increased capacity, we risk overcapacity, leading to<br><br>higher costs and potential losses on those investments.<br><br>Additionally, most of our key suppliers, including Carl Zeiss<br><br>SMT, operate a limited number of manufacturing facilities.<br><br>Any disruption at these sites could significantly impact our<br><br>production. As our products become more complex, lead times<br><br>for components have increased. Inaccurate demand forecasting<br><br>or shipment delays can result in insufficient supply, delaying<br><br>system deliveries and limiting our responsiveness to market<br><br>changes. On the other hand, overestimating demand could lead<br><br>to excess inventory and obsolescence.<br><br>We also rely on suppliers to develop new models and products<br><br>aligned with our technology roadmap. If they fail to meet our<br><br>specifications or timelines, our business could be adversely affected.<br><br>Historically, we shipped systems by air, but have recently begun<br><br>using ocean freight for some deliveries. This shift introduces new<br><br>risks, such as delays, defects, or damage during transit.	All of our manufacturing activities, including subassembly, final<br><br>assembly and system testing, take place in (cleanroom) facilities<br><br>in Veldhoven, Eindhoven, Oirschot (the Netherlands), Berlin<br><br>(Germany), Wilton, San Diego (US), Pyeongtaek (South Korea)<br><br>and Linkou and Tainan (Taiwan). These facilities may be subject<br><br>to disruption for various reasons, including work stoppages, fire,<br><br>energy shortages and access issues, pandemic outbreaks,<br><br>flooding, cyberattacks, blockages, sabotage or other disasters,<br><br>natural or otherwise. Alternative production capacity may not be<br><br>available if a major disruption were to occur.<br><br>Climate change is contributing to more frequent and severe<br><br>weather events, rising sea levels, and droughts, all of which pose<br><br>risks to our operational continuity and supply chain resilience.<br><br>We do not fully insure our risk exposure, and not all disasters,<br><br>other potential disruptions and risks are insurable. As a result,<br><br>we may be subject to the financial impact of uninsured losses,<br><br>which could have an adverse impact on our financial condition<br><br>and results of operations.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	71
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At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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Risk factors (continued)

Operations (continued)
Our operations expose us to health, safety and<br><br>environment risks	Cybersecurity and other security incidents, or disruptions in our processes or technology systems, could<br><br>materially adversely affect our business operations		We are exposed to risks related to the use of<br><br>artificial intelligence
Hazardous substances are used in the production and operation<br><br>of our products and systems. Their use subjects us to a variety<br><br>of governmental regulations relating to environmental protection<br><br>and employee and product health and safety. This includes the<br><br>transport, use, storage, discharge, handling, emission, generation<br><br>and disposal of toxic or other hazardous substances. In addition,<br><br>operating our systems (which use lasers and other potentially<br><br>hazardous components) can be dangerous and can result in injury.<br><br>Non-compliance with these regulations could lead to harm to<br><br>individuals and the environment, and may result in substantial<br><br>fines, production halts, changes to our manufacturing and testing<br><br>processes, reputational damage, and restrictions on our<br><br>operations or sales.<br><br>As our products become increasingly complex, we continue to<br><br>invest in risk assessments and the development of preventive and<br><br>protective measures to safeguard the health and safety of both our<br><br>employees (during production, installation, and service activities)<br><br>and those of our customers (during system operation). However,<br><br>these measures may not fully eliminate all risks. A failure to comply<br><br>with applicable regulations could expose us to significant liabilities<br><br>and adversely affect our business.	We depend heavily on the accuracy, availability, and security<br><br>of our information technology (IT) and operational technology<br><br>(OT) systems. While we have implemented various safeguards,<br><br>including cybersecurity measures, our systems remain vulnerable<br><br>to breaches or damage caused by malware, cyberattacks, natural<br><br>and man-made disasters, human error, or unauthorized physical or<br><br>electronic access. We have encountered such incidents in the past.<br><br>As ASML’s prominence in the semiconductor industry grows,<br><br>so does the likelihood of being targeted in security attacks.<br><br>Cyberattacks targeting our IT and OT infrastructure – as well as<br><br>those of our customers, suppliers, and service providers – are<br><br>increasing in frequency and sophistication. These attacks include<br><br>malware, unauthorized attempts to access data, and other security<br><br>breaches. Such incidents can disrupt critical systems and lead to<br><br>the unauthorized release, corruption, or loss of confidential<br><br>information, including data related to our customers, employees,<br><br>and suppliers. Emerging technologies like AI and quantum computing<br><br>may further enable advanced cyber threats or circumvent existing<br><br>security protocols. Cybersecurity threats continue to evolve, and we<br><br>remain exposed to both known and unknown risks. In some cases,<br><br>we or our stakeholders may be unaware of an incident or its full<br><br>impact. There is also a risk that our products could inadvertently<br><br>expose customers to cyber threats, which could<br><br>harm their operations.<br><br>We rely on our employees and those of our suppliers and<br><br>partners to classify and handle sensitive data responsibly, to<br><br>deploy our assets securely and to provide access on a need-to-know<br><br>basis. However, inadvertent actions or misconduct by these<br><br>individuals have led – and may continue to lead – to unauthorized<br><br>access, data breaches, theft, system interruptions, or loss of<br><br>information. These insider risk events can result in competitive<br><br>disadvantages, violations of export controls and other regulations,<br><br>and may expose us to fines, penalties, reputational damage, and<br><br>increased regulatory scrutiny.	Any system failure, accident or security breach or any other of the<br><br>foregoing risks could result in business disruption, theft of our IP or<br><br>trade secrets, unauthorized access to, or disclosure of, customer,<br><br>employee, supplier or other confidential information, corruption of<br><br>our data or of our systems, reputational damage or litigation, and<br><br>violation of applicable laws.<br><br>Furthermore, malware may harm our products and could be<br><br>inadvertently transmitted to our customers’ systems and operations.<br><br>This could result in loss of customers, litigation, regulatory investigation<br><br>and proceedings that could expose us to civil or criminal liabilities and<br><br>diversion of significant management attention and resources.<br><br>We may incur substantial costs to recover from such incidents,<br><br>including rebuilding systems, enhancing security measures,<br><br>modifying products and services, defending against legal claims,<br><br>and responding to regulatory actions. We are also dependent on<br><br>our strategic IT suppliers to recover from disruptions or attacks.<br><br>Despite these efforts, remediation may not be fully effective and<br><br>could result in service interruptions, negative publicity, customer<br><br>dissatisfaction, and loss of business.<br><br>Additionally, our processes and systems may struggle to keep<br><br>pace with our growth. From time to time, we implement updates<br><br>to our IT systems and software which can disrupt or shut down our<br><br>IT systems. We may not be able to successfully launch or migrate<br><br>IT systems as planned without disruption to our operations – for<br><br>example, our planned ERP migration.<br><br>Our organization increasingly relies on a limited number of cloud<br><br>service providers and third-party IT services to support critical<br><br>operations, data storage, and infrastructure. This creates a<br><br>concentration risk, where disruptions affecting one provider<br><br>can have widespread operational, financial, and reputational<br><br>consequences. Additionally, dependency on other IT services,<br><br>such as identity management, networking, software platforms,<br><br>and interfaces, can compound this risk. Key concerns include<br><br>operational disruptions, vendor lock-in, regulatory and compliance<br><br>challenges, integration complexity and security vulnerabilities,<br><br>including shared infrastructure risks.	We are increasingly integrating artificial intelligence (AI) into our<br><br>technology development, business operations, and the products<br><br>and services we offer. While AI presents significant opportunities,<br><br>it also introduces a range of complex and rapidly evolving risks –<br><br>including competitive, legal, regulatory, operational, and<br><br>ethical challenges.<br><br>We may fail to implement AI in a timely and effective manner.<br><br>AI can be costly, and there is no assurance that it will improve our<br><br>technologies, enhance our operations, or result in products and<br><br>services that resonate with our customers. Competitors may<br><br>adopt more effective AI strategies, potentially providing<br><br>competitive advantage.<br><br>AI systems can also be vulnerable to flaws in algorithms, training<br><br>methods, or datasets, which may contain irrelevant, insufficient,<br><br>or biased information. These issues can result in unintended or<br><br>inaccurate outputs, legal liabilities, reputational damage, and<br><br>material harm to our business.<br><br>The adoption of AI technologies may introduce several risks,<br><br>including potential loss, infringement, or misappropriation of<br><br>intellectual property, as well as concerns related to data privacy<br><br>and cybersecurity. Additional security challenges may arise, such<br><br>as managing contextual access and defining the scope of actions<br><br>permitted for AI agents. Furthermore, ethical considerations<br><br>surrounding AI could impact market acceptance and potentially<br><br>reduce demand for our products and services.<br><br>Governments are actively developing laws and regulations related<br><br>to AI. Compliance with these evolving requirements may increase<br><br>operational costs and restrict how we use AI in our products and<br><br>services. Any actual or perceived failure to meet these standards<br><br>could lead to legal consequences, reputational harm, or other<br><br>adverse impacts on our business.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	72
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At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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Risk factors (continued)

Operations (continued)	Finance and reporting
We face challenges to meet expected demand	We are exposed to financial risks including liquidity risk, interest rate risk, counterparty credit risk, foreign<br><br>exchange risk and inflation risk		Changes in taxation could affect our future<br><br>profitability
We are continuing to increase production capacity in our end-to-<br><br>end supply chain to meet future demand, but we face challenges<br><br>in increasing capacity. For example, we depend on our suppliers<br><br>increasing their capacity and their ability to invest, and it takes<br><br>time to build the production space and equipment required for<br><br>expansion. We and our supply chain also need to obtain permits<br><br>to make expansion possible, and the time it takes for these to<br><br>be granted may cause delays.<br><br>It is a challenge for ASML and its suppliers to hire and retain<br><br>employees to support expansion. Our processes and systems<br><br>and those of our supply chain may also not be able to adequately<br><br>support our growth. If we are not successful in increasing our<br><br>capacity to meet future demand, this could impact our relationships<br><br>with customers and our competitive position.<br><br>We and our suppliers have invested significantly in increasing<br><br>capacity, and we face various risks in connection with this, including<br><br>risks relating to system quality, the risk that we have not accurately<br><br>predicted demand, and risks associated with maintaining a much<br><br>larger production infrastructure and supplier ecosystem, including<br><br>higher costs and challenges in controlling the enlarged<br><br>production process.<br><br>We also face the risk that our increase in capacity could result in<br><br>capacity that exceeds demand (overcapacity).	As a global company, we are exposed to a variety of financial risks,<br><br>including those related to liquidity, interest rates, counterparty<br><br>credit, currencies and inflation.<br><br>Liquidity risk<br><br>Negative developments in our business or global capital markets<br><br>could affect our ability to meet our financial obligations or to raise<br><br>or refinance debt in the capital or loan markets. In addition, we<br><br>might be unable to repatriate cash from a country when needed<br><br>for use elsewhere due to legal restrictions or required formalities.<br><br>Currency risk<br><br>Our Financial statements are expressed in euros. Accordingly,<br><br>our results of operations are exposed to fluctuations in exchange<br><br>rates between the euro and other currencies. Changes in currency<br><br>exchange rates can result in losses in our Financial statements.<br><br>We are particularly exposed to fluctuations in the exchange rates<br><br>between the US dollar, the Japanese yen, the South Korean won,<br><br>the Taiwanese dollar and the Chinese yuan, in relation to the euro.<br><br>We incur costs of sales predominantly in euros, with portions also<br><br>denominated in US and Taiwanese dollars. A small portion of our<br><br>operating results are driven by movements in currencies other than<br><br>the euro, US dollar, Japanese yen, South Korean won, Taiwanese<br><br>dollar or Chinese yuan.<br><br>Inflation risk<br><br>We are exposed to increases in costs due to inflation for costs<br><br>of goods, transportation and wages. We have experienced and<br><br>experience higher-than-normal inflation, which impacts our costs<br><br>and margins in case we are not able to pass on increased costs<br><br>in our prices.	Interest rate risk<br><br>Our Eurobonds bear interest at fixed rates. Our cash, investments,<br><br>Euro Commercial Paper program and credit facilities bear interest<br><br>at a floating rate. Failure to effectively hedge this risk could impact<br><br>our financial condition and results of operation. In addition, we<br><br>could experience an increase in borrowing costs due to a ratings<br><br>downgrade (or the expectation of a downgrade), developments in<br><br>capital and lending markets or developments in our businesses.<br><br>Counterparty credit risk<br><br>We are exposed to credit risk, particularly with respect to (financial)<br><br>counterparties with whom we hold our cash and investments, as<br><br>well as our customers and, in some instances, to suppliers. As a<br><br>result of our limited number of customers, counterparty credit risk<br><br>on our receivables is concentrated. Our three largest customers<br><br>(based on total net sales) accounted for €1,294.2 million, or 35.4%<br><br>of accounts receivable and finance receivables, at December 31,<br><br>2025, compared with €2,641.9 million, or 54.1%, at December 31,<br><br>2024. Accordingly, business failure or insolvency of one of our<br><br>main customers could result in significant credit losses.	We are subject to income taxes in the Netherlands and other<br><br>countries in which we operate. Our effective tax rate has fluctuated<br><br>in the past and may do so in the future.<br><br>Our effective tax rate can be affected by changes in our business<br><br>environment, changes in tax legislation in the countries where we<br><br>operate, developments driven by global organizations such as the<br><br>Organisation for Economic Co-operation and Development (OECD),<br><br>and any change in approach to tax by tax authorities. Initiatives like<br><br>the BEPS and Global Minimum Tax rules have already resulted in<br><br>and may result in further increased compliance obligations for<br><br>ASML. This may result in an increase in our effective tax rate in<br><br>future years.<br><br>Changes in tax legislation may adversely impact our tax position<br><br>and consequently our net income. Our worldwide effective tax rate<br><br>is heavily impacted by R&D incentives included in tax laws and<br><br>regulations in the countries where we operate, such as the so-<br><br>called innovation box in the Netherlands and the R&D credits we<br><br>obtain in the US. If relevant jurisdictions alter their tax policies/laws<br><br>in this respect, it may have an adverse effect on our worldwide<br><br>effective tax rate. In addition, jurisdictions levy corporate income<br><br>tax at different rates. The mix of our sales over the various<br><br>jurisdictions in which we operate may vary from year to year,<br><br>resulting in a different mix of corporate income tax rates applicable<br><br>to our profits. This can also affect our worldwide effective tax<br><br>rate and impact our net income.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	73
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At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
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Risk factors (continued)

Compliance		Other
We are subject to regulatory and compliance obligations in the various countries where we operate and<br><br>the complexity of compliance requirements increases		Restrictions on shareholder rights may dilute<br><br>voting power	We may not declare cash dividends, conduct share<br><br>buybacks at all or in any particular amounts in any<br><br>given year
We are subject to a variety of laws and regulations across the<br><br>jurisdictions where we operate, including but not limited to those<br><br>relating to trade, national security, tax, export controls including<br><br>licensing or authorization requirements, reporting, product<br><br>compliance, anti-corruption, antitrust, foreign direct investment,<br><br>ESG, human rights, data protection, AI technologies, spatial<br><br>planning, environmental matters, workplace safety regulations,<br><br>securities laws and stock exchange rules. With the significant<br><br>growth of our business in recent years, ensuring compliance<br><br>with laws and regulations and our internal policies across our<br><br>continually expanding organization has become more challenging.<br><br>We face the risk that, despite our significant efforts and proactive<br><br>approach to compliance, we may fail to comply with such laws,<br><br>regulations or policies.<br><br>We operate in a significant and growing number of countries in<br><br>the world, and we are therefore subject to numerous and differing,<br><br>and sometimes conflicting, regulatory frameworks, which can<br><br>impact how we operate our business. In particular, the regulatory<br><br>environment regarding export and sanctions has become<br><br>increasingly restrictive, and, as a result, our ability to sell some<br><br>of our products and services to certain customers is subject to<br><br>restrictions and requires government authorization, which can<br><br>lead to delays in or a prohibition on shipments of products to<br><br>certain customers.	Laws and regulations that impact our business are regularly<br><br>amended and we are subject to new laws and regulations. We<br><br>are also subject to the changing interpretations by and positioning<br><br>of regulators, including in the granting of required licenses to ship<br><br>products as well as in investigations and enforcement. Additional<br><br>or amended regulations or changes in policies of governments and<br><br>regulators could increase compliance costs and risks associated<br><br>with non-compliance, or could impact our manufacturing or<br><br>distribution processes or location of sales and where and to whom<br><br>we can deliver and service our products and services, and could<br><br>affect the timing of product introductions, the cost of our<br><br>production, and products themselves as well as their commercial<br><br>success in each market in which we operate.<br><br>We are subject to investigations, audits and reviews by regulatory<br><br>authorities in the various jurisdictions where we operate regarding<br><br>compliance with laws and regulations, including tax laws. These<br><br>may arise due to misunderstandings, disputes, or suspicions of<br><br>non-compliance or otherwise, and can be resource-intensive and<br><br>have reputational and financial implications for us. Despite our<br><br>efforts and proactive compliance program, we may be found to<br><br>be non-compliant with applicable regulations.<br><br>Compliance with existing and new regulations can result in<br><br>compliance costs, increased risk of non-compliance and limitations<br><br>on our business, which can impact our results of operations.<br><br>The consequences of non-compliance include fines, penalties and<br><br>litigation, business disruption, the loss of trade or export privileges,<br><br>reputational harm, additional regulatory scrutiny measures and the<br><br>erosion of stakeholder trust, any of which could have a material<br><br>adverse effect on our business and results of operations.	ASML's Articles of Association provide that it is subject to the<br><br>provisions of Dutch law applicable to large corporations, called<br><br>‘structuurregime’. These provisions concentrate control of certain<br><br>corporate decisions and transactions in the hands of the Supervisory<br><br>Board (SB). As a result, holders of ordinary shares may have more<br><br>difficulty in protecting their interests in the face of actions by members<br><br>of the SB than if we were not subject to the ‘structuurregime’.<br><br>Our authorized share capital includes a class of cumulative<br><br>preference shares. We have granted our preference shares<br><br>foundation (Stichting Preferente Aandelen ASML) an option to<br><br>acquire, at the nominal value of €0.09 per share, such cumulative<br><br>preference shares. Exercise of the preference share option would<br><br>effectively dilute the voting power of our outstanding ordinary<br><br>shares by one-half, which may discourage or significantly impede<br><br>a third party from acquiring a majority of our voting shares.	We aim to pay a quarterly dividend that is growing (on an<br><br>annualized basis) over time, and we conduct share buybacks from<br><br>time to time. The dividend proposal and amount of share buybacks<br><br>in any given year are subject to, among other factors, the availability<br><br>of distributable profits, retained earnings and cash, the BoM's<br><br>views on our potential future liquidity requirements, including<br><br>for investments in production capacity and working capital<br><br>requirements, the funding of our R&D programs and acquisition<br><br>opportunities that may arise from time to time, and future<br><br>changes in applicable tax and corporate laws.<br><br>The BoM may decide not to pay a dividend or to pay a lower dividend<br><br>than is contemplated by our aim or dividend policy. In addition, we<br><br>may suspend, adjust the amount of or discontinue share buyback<br><br>programs, we may not enter into new share buyback programs, and<br><br>we may otherwise fail to complete buyback programs.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	74
---	---	---	---	---	---
At a glance	Q&A with the CEO	Our business	Financial performance	Risk and security
---	---	---	---	---

Information security

We believe ASML’s competitive

edge is grounded in knowledge

and IP built over decades. While

this expertise is developed

collaboratively by our people

and our thriving ecosystem of

suppliers, partners, customers

and knowledge institutions, we

aim to ensure it is systematically

captured, documented and

protected to maintain our

industry leadership.

Our innovation ecosystem is largely based

on the exchange of ideas and insights, which

makes the protection of knowledge a challenge,

but also makes it difficult for others to replicate

our work. This knowledge is captured in our

information management infrastructure.

Our prime objective is to protect the integrity

and confidentiality of our critical information

and data while ensuring continuity of our

operations. This should be embedded in

our processes, people and infrastructure.

However, as we innovate and collaborate

together, our partners inevitably need access

to some parts of our systems’ infrastructure.

We aim to enable this in a secure way, with

best-in-class security functions deployed

across our infrastructure to manage security

threats and risks.

We are also confronted with EU laws such as

the NIS2 Directive and the Cyber Resilience

Act (CRA), and with Cyber Incident Reporting

for Critical Infrastructure (Cybersecurity and

Infrastructure Security Agency) in the US,

which highlight regulations seeking to ensure

critical infrastructure organizations are

securing themselves effectively.

As perpetrators make use of more advanced

methods, implementing adequate responses

becomes more complex – so we continue to

take steps to try to deal with this effectively.

In the event of a security incident involving the

loss of information assets, the materiality of

the incident is jointly assessed by technology

leaders and subject matter experts with

support from Corporate Intellectual Property

and Legal and Compliance.

In 2025, as far as we are aware, ASML had

zero incidents with a material impact.

Risk factors – Cybersecurity and other security

incidents, or disruptions in our processes or

technology systems, could materially adversely

affect our business operations

How we manage information security

We have a dedicated Security function to

ensure we properly manage all security risks.

The security risk assessment process, which

includes cybersecurity, sits within our

ERM process and follows our governance

structure, with the Security Committee as

a sub-committee of the CESR, which acts

as the oversight committee mandated

by the BoM.

The three layers of our security governance

framework are:

1.The Security Committee: Oversees and

promotes the integration of security risk

management methodologies and related

controls in ASML’s business processes.

The Security Committee reports into

the CESR.

2.The Security Function Management

team: Monitors the implementation and

execution of security risk management

methodologies and related controls in

ASML’s business processes.

3.The Security Expert team: Determines

the risk and control strategies and

generates input for tactical plans by

providing content expertise and

setting requirements.

This governance framework enables cross-

disciplinary alignment through structured

meetings and ensures integration throughout

our broader risk management profile.

Alongside evaluation by our Internal Audit

department, we have engaged several third

parties to evaluate our security capabilities

and maturity and provide both expertise

and resources to assist in identifying and

managing material cybersecurity risks. Some

examples of these engagements include

external validation of security management

systems, capability assessments, red-teaming,

penetration testing and tabletop exercises.

The Security function led by the Chief

Information Security Officer (CISO)

monitors risk prevention, detection,

mitigation and remediation processes

related to cybersecurity, and regularly

reports to the Security Governance and to

the Audit Committee. We have implemented

processes to identify and respond to

cybersecurity threats intended to comply

with standards set by the International

Organization for Standardization (ISO 27002),

International Society of Automation (ISA/

IEC 62443) and US National Institute

of Standards and Technology (NIST

Cybersecurity Framework). We have a

dedicated team that works to increase

our strength and maturity and minimize

exploitable vulnerabilities by monitoring

threats, assessing our vulnerability and

defining incident responses.

The central security organization was

set up to define the policies, procedures

and adherence to these policies in a

second-line role, coordinated closely with

the security representatives in the business.

It also delivers operational services to the

ASML organization via the Security Operations

Center (SOC). In case of incidents, the SOC

is to be the central point for dealing with

these incidents effectively.

In the event of a possible material cybersecurity

incident, the Corporate Crisis Management

team (CCMT) verifies the assessment and

proposed response. The CCMT is chaired

by the Chief Operations Officer, who reports

out to the BoM on the proposed response.

A dedicated governance structure is in place

to deal with a crisis situation effectively.

The CISO coordinates the response as a

second line of responsibility, along with

the security teams in the business.

Third-party cybersecurity risks

In order to both oversee and identify risks

from cybersecurity threats associated with

our use of third parties, all of our providers

are required to comply with our ASML

Security Controls (part of the Supplier

Security Policy). We assess and monitor

providers using a risk-based approach

based on ISO 27002, ISA/IEC 62443 and

NIST Cybersecurity Framework. We also

have a dedicated team to deploy procedures

to increase our resistance strength and

minimize vulnerabilities by monitoring

threats, assessing our vulnerability through

testing, and defining responses.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	75
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Corporate

governance

76	Corporate governance at a glance
78	Board of Management
80	Supervisory Board
83	Other Board-related matters
85	AGM and share capital
88	Financial reporting and audit
90	Compliance with corporate governance requirements
	Supervisory Board report
91	In conversation with the Chair of the Supervisory Board
94	Supervisory Board focus in 2025
98	Meetings and attendance
99	Composition and skills
101	Evaluation
102	Supervisory Board committees
112	Financial statements and profit allocation
	Remuneration report
113	In conversation with the Chair of the Remuneration Committee
115	Board of Management remuneration at a glance
117	Remuneration Committee
119	Board of Management remuneration
134	Supervisory Board remuneration
137	Other information

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	76
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Corporate governance at a glance

Upholding strong corporate governance to drive long-term sustainable value creation.

OVERVIEW
These pages provide<br><br>an overview of and a<br><br>brief introduction to the<br><br>Corporate governance<br><br>section of our<br><br>Annual Report.		I am confident that<br><br>our new management<br><br>team and continued<br><br>focus on technological<br><br>leadership will secure<br><br>our long-term success.”
---
Nils Andersen
Chair of the Supervisory Board		Supervisory Board skills
---		International management	89%
---	---
Finance/governance	78%
Remuneration	78%
Human resources	100%
IT/digital/cyber	67%
ESG	100%
Semiconductor ecosystem	56%
Technology	44%
Supply chain	78%
Business in Asia	89%		Stakeholders
---

We regularly engage with our stakeholders

to understand the impact we have on them,

and their needs and expectations.

Read more<br><br>on page 44 >
Remuneration
Our Board of Management Remuneration<br><br>Policy is designed to fairly incentivize the<br><br>delivery of our strategic business priorities<br><br>and create sustainable long-term value.		Read more on page 99 >
---	---	---
2025 strategic priorities
	1	Deepen customer trust
	2	Extend our technology and<br><br>holistic product leadership
	3	Strengthen ecosystem<br><br>relationships
	4	Create an exceptional workplace
	5	Drive operational excellence
	6	Deliver on ESG sustainability
Read more on page 115 >			Supervisory Board diversity, nationality and tenure
---

56%	44%	4.1
Men	Women	Years average<br><br>tenure
		(2024: 4.2)
Read more on page 94 >			Dutch	x2
---	---
German	x1
American	x2
British	x1
Danish	x1
Belgian	x2

Supervisory

Board

nationality

Board of Management (’000s)
Christophe D. Fouquet			€7,021
Frédéric J.M. Schneider-Maunoury			€4,366
Roger J.M. Dassen			€4,350
Wayne R. Allan			€4,463
James (Jim) P. Koonmen			€4,083
	STI	LTI
Read more on page 128 >

All values are in Euros.

106

Supervisory Board attendance
Supervisory<br><br>Board	Audit<br><br>Committee	Remuneration<br><br>Committee	Selection<br><br>and Nomination<br><br>Committee	Technology<br><br>Committee	ESG<br><br>Committee
98%	100%	100%	100%	100%	100%
Read more on page 98 >
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	77
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Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Corporate governance

We endorse the importance of good

corporate governance – of which

independence, accountability and

transparency are the most significant

elements. These are also the elements

on which we can build a relationship

of trust with our stakeholders.

ASML Holding N.V. is a public limited liability company

organized under Dutch law. Our shares are listed on

Euronext Amsterdam and Nasdaq.

We have a two-tier board structure consisting of a Board

of Management responsible for managing the company,

and an independent Supervisory Board that supervises

and advises the Board of Management. For the fulfillment

of their duties, the two Boards are accountable to the

General Meeting, the corporate body representing

our shareholders.

Our governance structure is based on our Articles of

Association, Dutch (and where relevant EU) corporate

and securities laws, and the Dutch Corporate Governance

Code (mccg.nl/english). Because we are listed on Nasdaq,

we are also required to comply with applicable provisions

of the Sarbanes-Oxley Act, the Nasdaq Listing Rules, and

the rules and regulations promulgated by the US

Securities and Exchange Commission as applied to

‘foreign private issuers’ such as ASML.

We are subject to the relevant provisions of Dutch law

applicable to large corporations (‘structuurregime’) –

which have the effect of concentrating control over

certain corporate decisions and transactions in the hands

of the Supervisory Board. Procedures for the appointment

and dismissal of Board of Management and Supervisory

Board members are based on the structuurregime.

This section of the Annual Report addresses our

corporate governance structure and the way we apply

the principles and best practices of the Dutch Corporate

Governance Code. It also provides information required

by the Decree adopting further rules related to the

content of the management report and the Decree

implementing Article 10 of the Takeover Directive.

We signed up to the VNO-NCW Tax Governance Code.

More information on our approach to tax can be found

in our Tax Report 2025 on our website.

In accordance with the Dutch Corporate Governance

Code, other parts of this Annual Report address our

strategy and culture aimed at sustainable long-term

value creation, our values and Code of Conduct, and

the main features of our internal control and risk

management systems.

On March 20, 2025, the updated Dutch Corporate

Governance Code 2025 was published, which applies

to the financial years starting on or after January 1, 2025,

and which introduces amended best practice provisions

related to risk management and internal control. To

comply with these amended best practice provisions, a

Risk Management Statement has been included in our

2025 Annual Report based on EU-IFRS.

Our business – Our business strategy and Our business model,

Strategic report – Risk and security – How we manage risk and

Sustainability statements – General disclosures – ESG

sustainability governance

ASML corporate governance structure
				Shareholders
		Supervisory Board
	Audit<br><br>Committee		ESG<br><br>Committee		Remuneration<br><br>Committee	Selection and<br><br>Nomination<br><br>Committee	Technology<br><br>Committee
				Board of Management				ASML organization
---	---	---	---	---
Business axis:<br><br>Customer	Business axis:<br><br>Product	Technology<br><br>axis	Execution<br><br>axis	Enabling<br><br>axis
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	78
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management

Our Board of Management is responsible

for managing ASML. Its responsibilities

include establishing a position on the

relevance of sustainable long-term value

creation for ASML and our business, defining

and deploying our strategy, establishing and

maintaining effective risk management and

control systems, and managing the realization

of our operational and financial objectives

and the environmental, social and governance

(ESG) aspects relevant to us. In fulfilling its

responsibilities, the Board of Management

is guided by the interests of ASML and

our business – and takes into consideration

the interests of our stakeholders.

The current Board of Management comprises five

members and the composition remained unchanged

in 2025. On October 9, 2025, ASML announced that

the Supervisory Board intends to add the role of Chief

Technology Officer (CTO) to the Board of Management

effective per the 2026 Annual General Meeting

(AGM), underscoring our ambition to drive forward

our technology roadmap in service of our customers.

As a result, the Board of Management will comprise

six members effective per the 2026 AGM.

The Board of Management divides tasks among its

members, charging individuals with specific managerial

tasks, but remains collectively responsible for the

management of ASML.

The Board of Management is supervised and advised

by the Supervisory Board. The Board of Management

provides the Supervisory Board – in writing or otherwise

– with all information necessary for the Supervisory

Board to properly carry out its duties. In addition to

the information provided in their regular meetings, the

Board of Management provides the Supervisory Board

with regular updates on developments relating to our

business, financials and operations, and industry

developments in general. Certain important decisions

of the Board of Management require the approval of

the Supervisory Board.

Appointments

Members of the Board of Management are appointed for

a maximum term of four years by the Supervisory Board

on the recommendation of the Selection and Nomination

Committee and upon notification to the General Meeting.

Reappointment for consecutive terms of a maximum of

four years is possible. For persons aged 65 years or

above, a maximum appointment term of two years

applies, with the possibility of reappointment for

consecutive two-year terms. The relationship between

ASML Holding N.V. and the Board of Management

members does not constitute an employment agreement

pursuant to Dutch law. Accordingly, ASML Holding N.V.

has entered into management services agreements with

all of our Board of Management members except for Jim

Koonmen, with whom ASML US, LLC has entered into

an employment agreement.

Agreements with Board of Management members

contain specific provisions regarding severance

payments. If ASML terminates the agreement for

reasons not exclusively or mainly found in acts or

omissions of the Board of Management member, a

severance payment not exceeding one year’s base

salary is payable. Furthermore, the agreements stipulate

that a member of the Board of Management, when giving

notice of termination pursuant to a change of control,

will be entitled to a severance amount. Given that such

a resignation is specifically linked to a change of control,

we do not consider this provision a deviation from the

Dutch Corporate Governance Code.

The Supervisory Board may suspend and dismiss

members of the Board of Management, but only after

consulting the General Meeting.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	79
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management (continued)

	Christophe D. Fouquet<br><br>(1973, French)
	President, Chief Executive Officer and<br><br>Chair of the Board of Management<br><br>Term expires 2028		Executive Vice President and<br><br>Chief Customer Officer<br><br>Term expires 2028
	Christophe Fouquet became President and CEO in 2024,<br><br>having served as Executive Vice President EUV from 2018<br><br>until 2022, Executive Vice President and Chief Business<br><br>Officer from 2022 until 2024 and member of the Board of<br><br>Management since 2018. Since joining ASML in 2008, he<br><br>has held several positions, including Senior Director<br><br>Marketing, Vice President Product Management, and<br><br>Executive Vice President Applications, a position he held<br><br>from 2013 until 2018. Prior to joining ASML, he worked for<br><br>semiconductor equipment peers KLA-Tencor and Applied<br><br>Materials. Christophe holds a master’s degree in Physics<br><br>from the Institut Polytechnique de Grenoble.		Jim Koonmen joined ASML in 2007 through the<br><br>acquisition of Brion, where he was General Manager<br><br>from 2008 until 2015. He subsequently served as the<br><br>CEO of Cymer and then led the Applications business<br><br>for five years. Before he joined ASML, Jim was Vice<br><br>President of Marketing and Operations at MEMX,<br><br>Director of Manufacturing Engineering at Onetta and<br><br>Director of Operations at Johnson & Johnson. Jim holds<br><br>a Master of Science in Management from the MIT Sloan<br><br>School of Management and a Master of Science in<br><br>Aeronautics and Astronautics from the Massachusetts<br><br>Institute of Technology.
Roger J.M. Dassen<br><br>(1965, Dutch)		Wayne R. Allan<br><br>(1967, American)		Frédéric J.M. Schneider-Maunoury<br><br>(1961, French)
Executive Vice President<br><br>and Chief Financial Officer<br><br>Term expires 2026		Executive Vice President and Chief Strategic<br><br>Sourcing & Procurement Officer<br><br>Term expires 2027		Executive Vice President<br><br>and Chief Operations Officer<br><br>Term expires 2026
Roger Dassen joined ASML in June 2018 and was<br><br>appointed Executive Vice President, CFO and member of<br><br>the Board of Management at the AGM the same year. He<br><br>had previously served as Global Vice Chair and member of<br><br>the Executive Board of Deloitte Touche Tohmatsu Limited,<br><br>having been CEO of Deloitte Holding B.V. Roger holds a<br><br>master’s in Economics and Business Administration, a<br><br>post-master’s in Auditing and a PhD in Business<br><br>Administration, all from the University of Maastricht. He is<br><br>Professor of Auditing at Vrije Universiteit Amsterdam, and<br><br>sits on the Supervisory Board of the Dutch National Bank.<br><br>He is also the Chair of the Supervisory Board of Maastricht<br><br>University Medical Center+ and he joined the Strategic<br><br>Committee of Mistral AI as a member in 2025.		Wayne Allan was appointed Executive Vice President,<br><br>Chief Strategic Sourcing & Procurement Officer and<br><br>member of the Board of Management in 2023. Wayne<br><br>joined ASML in 2018 as Executive Vice President of<br><br>Customer Support. Before he joined ASML, Wayne<br><br>served as Senior Vice President of Global Manufacturing<br><br>Operations and as Vice President of Wafer Fabs at<br><br>Micron Technology, Inc., the company where he began<br><br>his career in 1987 as a production operator. He<br><br>continued to move into operations roles of increasing<br><br>leadership in engineering, planning and production.		Frédéric Schneider-Maunoury has been Executive Vice<br><br>President and Chief Operations Officer since he joined<br><br>ASML in 2009. He was appointed to the Board of<br><br>Management in 2010. Prior to joining ASML, Frédéric<br><br>was Vice President Thermal Products Manufacturing at<br><br>power generation and rail transport equipment group<br><br>Alstom, having previously served as General Manager of<br><br>its worldwide Hydro Business. Before this, Frédéric had<br><br>held various positions at the French Ministry of Trade<br><br>and Industry. He is a graduate of École polytechnique<br><br>(1985) and École Nationale Supérieure des Mines (1988)<br><br>in Paris.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	80
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board

Our Supervisory Board supervises the

Board of Management and the general

course of affairs of ASML. The Supervisory

Board also supports the Board of

Management with advice. In fulfilling its

role and responsibilities, the Supervisory

Board takes into consideration the interests

of ASML and our business, as well as the

relevant interests of our stakeholders.

In our two-tier structure, the Supervisory Board is a

separate and independent body from the Board of

Management and from ASML. No member of the

Supervisory Board personally maintains a business

relationship with ASML, other than as a member of

the Supervisory Board.

The Supervisory Board currently consists of nine

members, with the minimum being three.

It focuses on matters including our corporate strategy

aimed at sustainable long-term value creation and its

execution; the staffing of and succession planning for the

Board of Management; the management of risks inherent

to our business activities; the financial reporting process;

compliance with applicable legislation and regulations;

our culture and the associated activities of the Board of

Management in that regard; the relationship with

shareholders and other stakeholders; and ESG aspects

important for ASML.

Important management decisions – such as setting

the operational and financial objectives, the strategy

designed to achieve these objectives, major investments,

budget, and the issue, repurchase and cancellation of

shares – require the Supervisory Board’s approval.

Stage 1	Stage 2	Stage 3	Stage 4	Stage 5
Recommendation<br><br>right of GM and<br><br>Works Council	Announcement<br><br>of nomination for<br><br>appointment by SB	Works Council has<br><br>the right to determine<br><br>its position	Formal nomination<br><br>for appointment<br><br>by SB	Appointment<br><br>of SB member<br><br>by GM

The Supervisory Board is governed by its Rules of

Procedure. Items covered in these rules include the

responsibilities of the Supervisory Board and its

committees, the composition of the Supervisory Board

and its committees, logistics surrounding the meetings,

the meeting attendance of members of the Supervisory

Board, the rotation schedule for these members and the

committee charters. The Supervisory Board’s Rules of

Procedure and the committee charters are regularly

reviewed and, if needed, amended. The Audit Committee

charter is reviewed annually to confirm it continues to

comply with applicable rules and regulations, including

those relating to the Sarbanes-Oxley Act. The Rules of

Procedures are published on our website.

Meetings and attendance

Appointments

Members of the Supervisory Board are appointed by the

General Meeting based on binding nominations proposed

by the Supervisory Board. When nominating persons for

(re)appointment, the Supervisory Board evaluates

whether candidates fit the Supervisory Board’s profile.

The General Meeting may reject binding nominations by

means of a resolution adopted with an absolute majority

of the votes cast, representing at least one-third of our

outstanding share capital. If the votes cast in favor of

such a resolution do not represent at least one-third of

the total outstanding capital, a new shareholders’

meeting can be convened – at which the nomination

can be overruled by an absolute majority.

The Supervisory Board generally informs the General

Meeting and the Works Council about upcoming end of

appointment terms at the AGM in the year preceding the

actual end of the appointment term(s). This ensures the

Works Council and the General Meeting have sufficient

opportunity to recommend candidates for the upcoming

vacancies. The Supervisory Board has the right to reject

such recommendations. Furthermore, the Works Council

has an enhanced right to make recommendations for

one-third of the members of the Supervisory Board.

This enhanced recommendation right implies that the

Supervisory Board may only reject the Works Council’s

recommendations in limited circumstances: (i) if the

relevant person is unsuitable or (ii) if the Supervisory

Board would not be duly composed if the recommended

person were appointed.

Members of the Supervisory Board serve for a maximum

term of four years or a shorter period as per the

Supervisory Board’s rotation schedule. Members are

eligible for reappointment for another maximum term of

four years, after which they may be reappointed again for

a maximum period of two years. This appointment may

be extended for a final term of no more than two years.

The rotation schedule is available on our website.

If the General Meeting loses confidence in the

Supervisory Board, it may, by an absolute majority of

the votes representing at least one-third of the total

outstanding capital, withdraw its confidence in the

Supervisory Board – resulting in the immediate dismissal

of the entire Supervisory Board. In such a case, the

Enterprise Chamber of the Amsterdam Court of Appeal

shall appoint one or more members to the Supervisory

Board at the request of the Board of Management.

Composition and skills

Supervisory Board committees

The Supervisory Board, while retaining overall

responsibility, has assigned some of its tasks and

responsibilities to five committees: the Audit Committee,

the ESG Committee, the Remuneration Committee,

the Selection and Nomination Committee, and the

Technology Committee.

Supervisory Board committees and the Board committee charters

at asml.com

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	81
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board (continued)

Nils S. Andersen<br><br>(1958, Danish)
Member of the Supervisory Board since 2023<br><br>(First term expires in 2027)
Chair of the Supervisory Board, Chair of the<br><br>Selection and Nomination Committee, member<br><br>of the Audit Committee
Nils Andersen joined the Supervisory Board in 2023, and has been its<br><br>Chair since. Nils also serves as Chair of the Board of Scan Global<br><br>Logistics A/S. From 2015 until May 2024, he served as Non-Executive<br><br>Director of Unilever Plc and was appointed as Chair as per 2019. From<br><br>2018 until 2023, he was the Chair of the Supervisory Board of Akzo<br><br>Nobel N.V. and, between 2007 and 2016, he was Group Chief Executive<br><br>of A.P. Møller–Mærsk. From 2001 until 2007, Nils served as President<br><br>and Chief Executive Officer of Carlsberg and Carlsberg Breweries.		Terri L. Kelly<br><br>(1961, American)
---
Member of the Supervisory Board since 2018<br><br>(Second term expires in 2026)
Vice Chair of the Supervisory Board, Chair of the<br><br>Remuneration Committee, member of the Selection<br><br>and Nomination Committee
Terri Kelly has been a member of the Supervisory Board since 2018.<br><br>Previously, she was President and CEO at W.L. Gore & Associates<br><br>from 2005 until 2018, having worked at Gore since 1983 in various<br><br>management roles. She also served on Gore’s Board of Directors<br><br>through July 2018. Terri is a Trustee of the Alfred I. Dupont Charitable<br><br>Trust, which provides oversight of the Nemours Foundation. She is the<br><br>Chair of the Board of Trustees of the University of Delaware and a<br><br>member of the Board of Directors of United Rentals, Inc.		Birgit M. Conix<br><br>(1965, Belgian)
---
Member of the Supervisory Board since 2021<br><br>(Second term expires in 2029)
Chair of the ESG Committee and member<br><br>of the Audit Committee
Birgit Conix became a member of the Supervisory Board in 2021.<br><br>Effective per February 1, 2025, she was appointed as Non-Executive<br><br>Director of AstraZeneca PLC and is a member of the Audit<br><br>Committee. Prior to this, she was CFO and a member of the<br><br>Management Board of Sonova Holding AG from June 2021 until<br><br>February 2025. From 2018 until January 1, 2021, Birgit was a member<br><br>of the Executive Board and CFO of TUI AG. She was previously the<br><br>CFO of the Belgian media, cable and telecommunications company<br><br>Telenet Group N.V. Prior to that, Birgit held various management<br><br>positions in finance at Johnson & Johnson, Heineken, Tenneco and<br><br>Reed Elsevier.		D. Mark Durcan<br><br>(1961, American)
---
Member of the Supervisory Board since 2020<br><br>(Second term expires in 2028)
Chair of the Technology Committee, member<br><br>of the Selection and Nomination Committee
Mark Durcan was appointed as a member of the Supervisory Board in<br><br>2020. He is Chair of the Board of Directors at Cencora since October<br><br>1 , 2025. He is also a member of the Board of Trustees for Rice<br><br>University (Texas) and as Director at Natural Intelligence Systems CA,<br><br>a private Al startup company. From 2012 to 2017, he was CEO of<br><br>Micron Technology, Inc., having joined the company in 1984 and<br><br>having held various management positions before being appointed<br><br>CEO. Furthermore, Mark was a non-executive director of Advanced<br><br>Micro Devices, Inc., and a director at Freescale Semiconductor, MWI<br><br>Veterinary Supply, Veoneer, Inc. and St Luke’s Health System (Idaho).

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Corporate governance	Supervisory Board report	Remuneration report
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Supervisory Board (continued)

Catharina (Karien) E.G. van Gennip<br><br>(1968, Dutch)
Member of the Supervisory Board since<br><br>2025 (First term expires in 2029)
Member of the ESG Committee and<br><br>the Remuneration Committee
Karien van Gennip brings extensive leadership experience<br><br>across professional services, financial services and public<br><br>policy. She has served as Minister of Social Affairs and<br><br>Employment and Deputy Prime Minister in the Dutch<br><br>government, CEO of Dutch healthcare insurer VGZ , and<br><br>CEO of ING France. Earlier in her career, she was State<br><br>Secretary of Economic Affairs, Minister for Foreign Trade,<br><br>held roles at McKinsey&Company, the Dutch Authority for<br><br>Financial Markets and ING, and served on various for<br><br>profit and not for profit Boards in the past. She has an<br><br>educational background in Physics from Delft University of<br><br>Technology and holds an MBA from INSEAD. Karien is<br><br>currently a Member of the Monitoring Committee<br><br>Corporate Governance, a Board member of Royal<br><br>Concertgebouw Orchestra, and a member of the<br><br>European Council on Foreign Relations.		D. Warren A. East<br><br>(1961, British)
---
Member of the Supervisory Board since 2020<br><br>(Second term expires in 2028)
Member of the Audit Committee, the<br><br>Selection & Nomination Committee and<br><br>the Technology Committee
Warren East became a member of the Supervisory<br><br>Board in 2020 and is currently a Non-Executive Board<br><br>member at Tokamak Energy plc. Furthermore, he is<br><br>also currently the Chair of the Board of Directors<br><br>of NATS Holdings Ltd., the UK’s National Air Traffic<br><br>Service. In October 2025, Warren joined ITM Power plc<br><br>as a Non-Executive Director. Warren was CEO of Rolls-<br><br>Royce Group Plc from 2015 until December 2022. He<br><br>spent his early career at Texas Instruments Ltd. from<br><br>1985 to 1994 before joining ARM Holdings, Plc., where<br><br>he held various management positions and was<br><br>appointed CEO from 2001 to 2013.
Jack P. de Kreij<br><br>(1959, Dutch)
---
Member of the Supervisory Board since 2023<br><br>(First term expires in 2027)
Chair of the Audit Committee and member<br><br>of the Remuneration Committee
Jack de Kreij joined the Supervisory Board in 2023. Among<br><br>other roles, he is currently the Vice Chair of the<br><br>Supervisory Board and Chair of the Audit Committee at<br><br>Wolters Kluwer N.V. Jack is also a member of the<br><br>Supervisory Board, Chair of the Audit Committee and<br><br>member of the ESG Committee at Royal Boskalis<br><br>Westminster N.V. In addition, he is the Chair of the Board<br><br>of the Dutch Association of Listed Companies (VEUO).<br><br>Jack served as the Vice Chair of the Supervisory Board<br><br>and Chair of the Audit Committee at TomTom N.V. until<br><br>April 2025. From 2003 to 2018, Jack was CFO and a<br><br>member of the Executive Board of Royal Vopak N.V.,<br><br>taking on the role of Vice Chair from 2010 to 2018.<br><br>Between 1986 and 2003 he worked at<br><br>PricewaterhouseCoopers, where he held various<br><br>management positions as (Senior) Partner and was among<br><br>other roles Managing Partner & Territory Leader of the<br><br>M&A-focused Transaction Services practice in the<br><br>Netherlands. Jack started his career in 1980 with the<br><br>Dutch Ministry of Finance, where he worked until 1986.		Alexander F.M. Everke<br><br>(1963, German)
---
Member of the Supervisory Board since 2022<br><br>(First term expires in 2026)
Member of the ESG Committee and<br><br>the Remuneration Committee
Alexander Everke joined the Supervisory Board in<br><br>2022. He also serves as member of the Supervisory<br><br>Board of Aixtron SE, a position he has held since May<br><br>2024 and has become the Chair of the Supervisory<br><br>Board since 2025. He is the former CEO of ams-<br><br>OSRAM AG, a position he held from March 2016 until<br><br>April 2023, after having joined ams AG in October<br><br>2015. Prior to that, Alexander held a range of positions<br><br>in the semiconductor industry, including management<br><br>roles at Siemens and Infineon and various leadership<br><br>positions at NXP Semiconductors.		An L. Steegen<br><br>(1971, Belgian)
---
Member of the Supervisory Board since 2022<br><br>(First term expires in 2026)
Member of the ESG Committee and<br><br>the Technology Committee
An Steegen joined the Supervisory Board in 2022. She<br><br>is CEO and member of the Board of Directors of Barco<br><br>N.V. since September 1, 2024, after having served as a<br><br>co-CEO and member of the Board of Directors since<br><br>October 1 , 2021. Prior to that, An was R&D director at<br><br>IBM Semiconductor and Executive Vice President at<br><br>the research institute imec in Belgium. Furthermore, An<br><br>was CTO and Executive Vice President Electronic and<br><br>Electro-Optical Materials at Umicore.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	83
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Corporate governance	Supervisory Board report	Remuneration report
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Other Board-related matters

This section addresses a number of topics

that apply to both the Board of Management

and the Supervisory Board.

Diversity

On January 1, 2022, the Dutch gender diversity bill came

into force, introducing a quota for the supervisory boards of

Dutch listed companies – which should comprise at least

one-third men and one-third women. New appointments will

be declared null and void in the event of non-compliance

with this requirement. The bill also introduced a requirement

to set ambitious gender-balance targets for boards of

management and senior management of large listed and

non-listed Dutch N.V.s and B.V.s, and to have a plan

outlining the actions needed in order to meet gender

diversity targets. Companies are required to report to the

Dutch Social and Economic Council on gender-balance

targets, plans and progress made within 10 months after the

end of the financial year, and in the management report.

The 2025 Dutch Corporate Governance Code contains

a requirement to adopt inclusion and diversity policies

for the Board of Management and the Supervisory Board

as well as a company-wide Diversity and Inclusion Policy

for the entire workforce including senior management.

As part thereof, ASML has set targets on gender diversity

and other I&D aspects relevant for ASML1.

Currently, the Supervisory Board meets the gender quota

of the Dutch gender diversity bill, as both men and women

are represented by at least three out of nine members.

During 2023, the Supervisory Board adopted the Supervisory

Board Diversity Policy, which has been incorporated as

an annex to the Supervisory Board’s Rules of Procedure,

and which can be found on our website.

As set out in the Board of Management Diversity Policy,

we seek to maintain a Board of Management comprised of

talented, competent executives who individually meet the

requirements for their specific role and collectively have

the experience and background required to successfully

lead an R&D-intensive high-tech company of the size and

complexity of ASML. Appropriate weight is placed on

diversity considerations, including experience, background,

gender, age and tenure, in the selection and

appointment process.

Our aim for the Board of Management is to have at least

one female member of the Board of Management by 2032

taking into account the current composition and rotation

schedule of our Board of Management.

Currently, the Board of Management is composed of male

members only. The Supervisory Board recognizes that the

2026 gender balance target has not been met for the

reasons set out below, and that Board of Management

composition leaves room for improvement on gender

diversity. The Supervisory Board is committed to

addressing this in future appointments. Future Board of

Management appointments depend on the rotation

schedule and succession planning process, which takes

into account both the continued strength and effectiveness

of the Board of Management and recent and announced

(re-) appointments.

When setting the diversity target, the Supervisory Board

also considered the female representation of the ASML

group overall as well as the female representation in senior

leadership (JG 13+). Since 2022, gender diversity targets

have been set as part of ASML’s ESG sustainability strategy

and as part of the long-term incentive for the Board of

Management and senior management, and ASML has set

up a company-wide diversity & inclusion program.


		Dutch	x2
56%
		German	x1
		American	x2
Male members
	Supervisory<br><br>Board<br><br>nationality	British	x1
		Danish	x1
44%
		Belgian	x2
Female members

157779918586576

Despite these measures taken to improve the inflow and

representation of women in the company overall and in

senior leadership in particular, increasing gender diversity

at the Board of Management remains challenging and is

expected to take time. The Supervisory Board also included

performance metrics aimed at improving the representation

of women in senior leadership in the Board of Management's

long-term incentive compensation. The Board of Management

Diversity Policy is part of the Board of Management's

Rules of Procedure, which can be found on our website.

The Supervisory Board fully supports ASML’s I&D

strategy as set out in this Annual Report. We recognize

that human capital is our most valuable asset and that

our success is driven by our unique and diverse teams.

Diversity promotes the inclusion of different perspectives

and ideas, mitigates against groupthink and enables us

to benefit from all available talent. This also applies to

the Board of Management and our senior management,

where a diverse composition contributes to robust

decision-making and proper functioning.

29%	16%		21%
Gender<br><br>diversity: %<br><br>inflow of<br><br>women (all job<br><br>grades)	Gender<br><br>diversity: %<br><br>representation<br><br>of women in<br><br>job grade 13+	Women in our<br><br>workforce<br><br>(headcount)

1.ASML presents in this Annual Report its diversity and inclusion policies and targets for, and progress on achieving, gender diversity as required by Dutch law and its Diversity and Inclusion Policy adopted by the BoM pursuant to

requirements of Dutch law. The US executive order 14173 (EO) titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, took effect on April 21, 2025. Our diversity targets and key performance indicators (KPIs) do

not apply to ASML’s US operations or employees. In addition, certain related programs and initiatives do not apply to ASML’s US employees to the extent they would conflict with the EO or other applicable law, regulation or orders.

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Other Board-related matters (continued)

Diversity complements our company values: challenge,

collaborate and care.

The ‘Attractive workplace for all’ section contains more

information about our I&D approach and our targets and

performance in 2025, as well as a look ahead at our I&D

agenda and priority areas for 2026.

workplace for all

For the Board of Management specifically, the

Supervisory Board selects candidates for appointment

with due observance of our objective to foster a diverse

and inclusive working environment. Accordingly, we aim

to fill vacancies by considering candidates who bring the

required expertise and contribute to our diversity. The

Supervisory Board, when assessing the composition of

the Board of Management and identifying suitable

candidates for succession, will consider objective criteria

and the specific profile for the job while having due

regard for the relevant aspects of diversity. This applies

in particular to continuously striving for more balanced

gender representation.

In our internal development efforts for potential Board

of Management members, we strive for participation

of a diverse group of employees, specifically

senior leadership.

Any search firm engaged by the Supervisory Board or its

Selection and Nomination Committee will be specifically

directed to include diverse candidates in general and

multiple female candidates in particular.

workplace for all – Inclusion and diversity

Remuneration, share ownership

and indemnification

The remuneration of the Board of Management

is determined by the Supervisory Board, upon

recommendation of the Remuneration Committee

and in accordance with the Remuneration Policy for

the Board of Management. The current Remuneration

Policy was adopted by the General Meeting in 2025.

The remuneration of the Supervisory Board is based

on the Remuneration Policy for the Supervisory Board.

The current Remuneration Policy was adopted by the

General Meeting in 2023, and the remuneration amounts

were updated and approved at the 2025 AGM. The

remuneration of the Supervisory Board is not dependent

on our (financial) results. Members of the Supervisory

Board do not receive ASML shares, or rights to acquire

ASML shares, as part of their remuneration.

Board of Management and Supervisory Board members

who acquire or have acquired, for their own risk and

account, ASML shares or rights to acquire ASML shares

must intend to keep these for long-term investment only.

In concluding transactions in ASML shares, members of

the Board of Management and the Supervisory Board

must comply with our Insider Trading Rules. Any such

transactions in ASML shares performed by members of

the Board of Management and the Supervisory Board are

reported to the Dutch AFM. As of February 18, 2026, Nils

Andersen holds 1,060 ASML shares, Jack de Kreij holds

500 ASML shares and Birgit Conix holds 254 ASML

shares. None of the other members of the Supervisory

Board currently have any ASML shares or rights to

acquire ASML shares.

We will not and have not granted any personal loans,

guarantees or the like to members of the Board of

Management or the Supervisory Board.

Our Articles of Association provide for the indemnification

of the members of the Board of Management and the

Supervisory Board against claims that are a direct result

of their tasks, provided that such claims are not attributable

to willful misconduct or intentional recklessness of the

respective member. We have also implemented the

indemnification of the members of the Board of

Management and the Supervisory Board by means of

separate indemnification agreements for each member.

Conflicts of interest and related party transactions

Conflict of interest provisions are incorporated in both

the Board of Management’s and the Supervisory Board’s

Rules of Procedure. These provisions reflect Dutch law

and the principles and best practice provisions of the

Code with respect to conflicts of interest.

No related-party transactions occurred in 2025, nor are

there any currently ongoing, other than ordinary course

compensation arrangements.

Insider trading

We have adopted an insider trading policy governing

the purchase, sale and other dispositions of our

securities by members of the Supervisory Board, Board

of Management and employees – a copy of which is

incorporated by reference as Exhibit 19.1 hereto.

Outside positions

Pursuant to Dutch legislation, a member of the

Board of Management may not be a Supervisory Board

member in more than two other large companies or

large foundations, as defined in Dutch law. A member

of the Board of Management may not be the chair of

a supervisory board of a large company. Board of

Management members require prior approval from the

Supervisory Board before accepting a position of another

large company or foundation. Members of the Board of

Management are also required to notify the Supervisory

Board of all important functions held or to be held by

them. The remuneration received by members of the

Board of Management from outside positions, if any,

shall be reimbursed to ASML, unless otherwise agreed

with the Supervisory Board, in accordance with the

Rules of Procedure of the Board of Management.

Dutch law stipulates that a Supervisory Board member

may not hold more than five such positions in large

companies or large foundations as defined in Dutch

law, with chair positions counting twice.

During the financial year 2025, all members of the Board

of Management and the Supervisory Board complied

with the requirements described above.

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AGM and share capital

Our AGM is held at least once a year and generally takes place in Veldhoven, the Netherlands. The agenda for the AGM typically includes the following topics:

Item 1 Discussion of the Management Report and the adoption of the Financial statements over the past financial year. Item 2 Discussion of the dividend policy and approval of any proposed dividends. Item 3 Advisory vote on the Remuneration report over the past financial year. Item 4 The discharge from liability of the members of the Board of Management and the Supervisory Board for the performance of their responsibilities in the previous financial year. Item 5 The limited authorization for the Board of Management to issue (rights to) shares in ASML’s capital, and to exclude preemptive rights for such issuances, as well as to repurchase shares and to cancel shares. Item 6 Any other topics proposed by the Board of Management, the Supervisory Board or shareholders in accordance with Dutch law and the Articles of Association.

Proposals placed on the agenda by the Supervisory

Board, the Board of Management or shareholders –

provided that they have submitted the proposals in

accordance with the applicable legal provisions – are

discussed and resolved upon. Shareholders representing

at least 1% of ASML’s outstanding share capital or a

share value of at least €50 million are entitled to place

items on the agenda of a general meeting at least 60

days before the date of the meeting.

An Extraordinary General Meeting (EGM) may be held

when considered necessary by the Supervisory Board

or Board of Management. In addition, an EGM must be

held if one or more ordinary or cumulative preference

shareholders, who jointly represent at least 10% of the

issued share capital, make a written request to that effect

to the Supervisory Board and the Board of Management.

The request must specify in detail the business to be

dealt with.

Shareholders’ meetings are convened by public

announcement via our website no later than 42 days

prior to the meeting, as stipulated by Dutch law.

The record date is set at the 28th day prior to the day

of the AGM. Persons registered as shareholders on the

record date are entitled to attend the meeting and to

exercise other shareholder rights.

The Board of Management and Supervisory Board

provide shareholders with information relevant to the

topics on the agenda by means of an explanation of

the agenda as well as by documents necessary or

helpful for this purpose. The agenda indicates which

items are voting items, and which items are for

discussion only. All documents related to the AGM

are posted on our website.

ASML shareholders can vote at the AGM by attending

and exercising their votes in person or by appointment

of a proxy who will vote on their behalf. We do not solicit

from or nominate proxies for our shareholders.

The 2025 AGM was held in hybrid form, accommodating

attendance, voting and asking of questions in person,

and, for holders of shares traded on Euronext

Amsterdam, online via the virtual meeting platform.

Shareholders also had the opportunity to vote in

advance via written or electronic proxy.

Resolutions are adopted by the general meeting with

an absolute majority of the votes cast (except where a

different proportion of votes are required by the Articles

of Association or Dutch law), and there are generally no

quorum requirements applicable to such meetings.

Voting results from the AGM are made available on

our website within 15 days of the meeting. The draft

report of the AGM is made available on our website or

on request no later than three months after the meeting.

Shareholders have the opportunity to provide comments

in the subsequent three months, after which the report is

adopted by the Chair and the Secretary of the meeting.

The adopted report is also available on our website

and on request.

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AGM and share capital (continued)

Powers

In addition to the items submitted annually at the

AGM, the General Meeting also has other powers,

with due observance of the statutory provisions.

These include resolving:

•To amend the Articles of Association.

•To issue shares if and insofar as the Board of

Management has not been designated by the

General Meeting for this purpose.

•To adopt the remuneration policies for the members

of the Board of Management and the Supervisory

Board, and to adopt the remuneration of the

Supervisory Board.

(Proposed) amendments of the Articles of Association

require the approval of the Supervisory Board. A quorum

requirement applies for the General Meeting at which an

amendment of the Articles of Association is proposed –

more than half of the issued share capital is required

to be represented, and the proposal requires a voting

majority of at least three-quarters of the votes cast. If the

quorum requirement is not met, a subsequent General

Meeting shall be convened, to be held within four weeks

of the first meeting. At this second meeting, the resolution

can be adopted with at least three-quarters of the votes

cast, irrespective of the share capital represented.

If a resolution to amend the Articles of Association is

proposed by the Board of Management, the resolution

will be adopted with an absolute majority of votes cast

irrespective of the represented share capital at the

General Meeting.

ASML’s authorized share capital amounts to 126.0 million and is divided into:
Type of shares	Nominal value	Votes per share
Cumulative preference shares	€0.09 per share	1
Ordinary shares	€0.09 per share	1
The issued and fully paid-up ordinary shares with a nominal value of 0.09 each were as follows:
As of December 31	2024	2025
Issued ordinary shares with nominal value of 0.09	393,283,720	385,417,665
Issued ordinary treasury shares with nominal value of 0.09	546,972	2,730,009
Total issued ordinary shares with nominal value of 0.09	393,830,692	388,147,674

All values are in Euros.

Our Articles of Association are included as Exhibit 1.1

hereto, and are incorporated by reference herein.

As of December 31, 2025, 87,904,216 ordinary shares

were held by 316 registered holders with a registered

address in the US. Since certain of our ordinary shares

were held by brokers and nominees, the number of

record holders in the US may not be representative of

the number of beneficial holders, or of where the

beneficial holders are resident.

Each ordinary share consists of

900

fractional shares.

Fractional shares entitle the holder thereof to a fractional

dividend, but do not give entitlement to voting rights.

Only those persons who hold shares directly in the share

5504 DR Veldhoven, De Run 6501, the Netherlands, or in

the New York share register, held by JP Morgan Chase

Bank, N.A., P.O. Box 64506, St. Paul, MN 55164-0506,

United States, can hold fractional shares. Shareholders

who hold ordinary shares through the deposit system

under the Dutch Securities Bank Giro Transfer Act

maintained by the Dutch central securities depository

Euroclear Nederland or through the Depository Trust

Company cannot hold fractional shares.

No cumulative preference shares have been issued.

Each share carries one vote.

Special voting rights, limitation voting rights and transfers

of shares

There are no special voting rights on the issued shares

in our share capital.

There are currently no limitations, either under Dutch

law or in our Articles of Association, on the transfer of

ordinary shares in the share capital of ASML. Pursuant

to our Articles of Association, the Supervisory Board’s

approval shall be required for every transfer of cumulative

preference shares.

Issue and repurchase of (rights to) shares

Our Board of Management has the power to issue

ordinary shares and cumulative preference shares

insofar as it has been authorized to do so by the

General Meeting. The Board of Management requires

approval of the Supervisory Board for such an issue.

The authorization by the General Meeting can only be

granted for a certain period not exceeding five years and

may be extended for no longer than five years on each

occasion. If the General Meeting has not authorized the

Board of Management to issue shares, the General

Meeting will be authorized to issue shares on the

Board of Management’s proposal, provided that the

Supervisory Board has approved such a proposal.

Holders of our ordinary shares have a preemptive

right, in proportion to the aggregate nominal amount

they hold. This preemptive right may be restricted or

excluded. Holders of ordinary shares do not have

preemptive rights with respect to any ordinary shares

issued for consideration other than cash or ordinary

shares issued to employees. If authorized for this

purpose by the General Meeting, the Board of

Management has the power, subject to approval

of the Supervisory Board, to restrict or exclude the

preemptive rights of holders of ordinary shares.

2025 authorization to issue and repurchase shares

At our 2025 AGM, the Board of Management was

authorized from April 23, 2025, through October 23,

2026, subject to the approval of the Supervisory Board,

to issue shares and/or rights thereto, representing up

to a maximum of 5% of our issued share capital at

April 23, 2025, plus an additional 5% of our issued

share capital at April 23, 2025, that may be issued in

connection with mergers, acquisitions and/or (strategic)

alliances. Our shareholders also authorized the Board of

Management through October 23, 2026, subject to

approval of the Supervisory Board, to restrict or exclude

preemptive rights with respect to holders of ordinary

shares up to a maximum of 5% of our issued share

capital in connection with the general authorization to

issue shares and/or rights to shares, plus an additional

5% in connection with the authorization to issue shares

and/or rights to shares in connection with mergers,

acquisitions and/or (strategic) alliances.

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AGM and share capital (continued)

We may repurchase our issued ordinary shares at any

time, subject to compliance with the requirements of

Dutch law and our Articles of Association. Any such

repurchases are subject to the approval of the

Supervisory Board and authorization by the General

Meeting, which authorization may not be for more

than 18 months.

At the 2025 AGM, the Board of Management was

authorized, subject to Supervisory Board approval, to

repurchase through October 23, 2026, up to a maximum

of 10% of our issued share capital at April 23, 2025, at a

price between the nominal value of the ordinary shares

purchased and 110% of the market price of these

securities on Euronext Amsterdam or Nasdaq.

Consolidated financial statements – Notes to the Consolidated

financial statements – 22. Shareholders’ equity

ASML Preference Shares Foundation

The ASML Preference Shares Foundation (Stichting

Preferente Aandelen ASML) has been granted an option

right to acquire cumulative preference shares in the share

capital of ASML. The Foundation may exercise this

Preference Share Option when, in the opinion of the

Foundation’s Board of Directors, the interests of ASML,

its business or its stakeholders are at stake, including

in the event that:

•a public bid for ASML’s shares has been announced

or made, or there is a justified expectation that such

a bid will be made without any agreement having

been reached with ASML in relation thereto; or

•an attempted exercise of voting rights by one or

more shareholders, which in the opinion of the

Foundation’s Board of Directors is materially in

conflict with the interests of ASML, of its business

or of its stakeholders.

Objectives of the Foundation

The Foundation’s objectives are to look after the

interests of ASML and the enterprises maintained by

and/or affiliated in a group with ASML, in such a way

that ASML’s interests and those of enterprises and all

parties concerned are safeguarded in the best possible

way. The Foundation is responsible for ensuring that

influences in conflict with these interests, which might

affect the independence or the identity of ASML and

those companies, are deterred to the best of the

Foundation’s ability. The Foundation aims to realize its

objects by acquiring and holding cumulative preference

shares in our capital and by exercising the rights

attached to these shares, particularly the voting rights.

The Preference Share Option

The Preference Share Option entitles the Foundation

to acquire cumulative preference shares, whereby the

	Shares	% of class4
BlackRock, Inc.1	26,325,103	6.83%
Capital Research and Management Company2	19,612,223	5.09%
Members of ASML’s current Board of Management and Supervisory Board (8 persons)3	51,095.11	0.01%
1.Based solely on the Schedule 13-G/A filed by Blackrock, Inc. with the SEC on April 23, 2025, BlackRock, Inc reports voting power with respect<br><br>to 24,171,923 of these 26,325,103 shares. A public filing with the AFM on December 6, 2022, shows an aggregate indirect capital interest of<br><br>5.80% and voting rights of 7.23%, based on the total number of issued shares and voting rights at that time.<br><br>2.As reported to the AFM on June 12, 2025, Capital Research and Management Company (CRMC) reports 19,612,223 voting rights corresponding<br><br>to 19,612,223 ordinary shares, but does not report ownership right related to those shares.<br><br>3.Does not include unvested shares granted to members of the Board of Management. For further information, see Remuneration Report –<br><br>Board of Management Remuneration.<br><br>4.As a percentage of the total number of ordinary shares issued and outstanding, 385,417,665 as of December 31, 2025, which excludes<br><br>2,730,009 ordinary shares which have been issued but are held in treasury by ASML and 15,642 fractional shares of which 15,024 are owned by<br><br>(former) ASML employees and 618 are owned by ASML. The share ownership percentages reported to the AFM or the SEC are expressed as a<br><br>percentage of the total number of ordinary shares issued (including treasury stock) and, accordingly, percentages reflected in this table may<br><br>differ from percentages reported to the AFM or the SEC.

aggregate nominal value of such cumulative preference

shares may not exceed the aggregate nominal value of

the ordinary shares issued at the time of exercise of the

Preference Share Option. The subscription price for the

cumulative preference shares shall be equal to nominal

value. Only 25 percent of the subscription price will be

payable upon issuance, with the remainder only being

payable when called-up by ASML.

Board of Directors

The Foundation operates independently of ASML.

Its Board of Directors comprises four independent

members. Per December 31, 2025, its members were:

Mr. Wim Pelsma, Mr. Sjoerd Vollebregt, Mr. Jos Streppel

and Mr. Steven Perrick (who was replaced by Mr. Arnold

Croiset van Uchelen effective January 1, 2026).

ASML has not established any other anti-takeover

devices.

Major shareholders

The Dutch Act on the supervision of financial markets

and US securities laws contain requirements regarding

the disclosure of capital interests and voting rights in listed

companies. The following table sets forth the total number

of ordinary shares owned by each shareholder that reported

to the Dutch AFM or the US SEC a beneficial ownership of

ordinary shares that is at least 3.0% (5.0%, in the case of

the SEC) of our ordinary shares issued and outstanding.

Also included in the table below is the total number of

ordinary shares owned by our members of the Board of

Management and Supervisory Board as of December 31,

The information set out below with respect to

shareholders is based on public filings with the SEC

and AFM as of February 18, 2026.

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Financial reporting and audit

Annual Reports

We publish, among others, the following annual reports regarding the financial year 2025: •The statutory Annual Report, has been prepared in accordance with the requirements of Dutch law. The Financial statements included therein are prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code and EU-IFRS, and the Sustainability statements included therein are prepared in accordance with the European Sustainability Reporting Standards (ESRS). •The Annual Report on Form 20-F, prepared in accordance with the requirements of the Exchange Act and regulations and the Form promulgated by the SEC. The Financial statements included therein are prepared in conformity with US GAAP. Both reports have the same qualitative base and provide the same description of our business, corporate governance, and risk factors specific to the semiconductor industry, ASML and our shares. We also provide sensitivity analyses through: •A narrative explanation of our Financial statements. •The context within which financial information should be analyzed. •Information about the quality and variability of our earnings and cash flow.

We annually prepare two annual reports including

Financial statements and Sustainability statements, as set

out on this page. With respect to the process of creating

the Annual Report, we have extensive guidelines for its

content and layout, primarily based on the applicable

laws and regulations referred to above. With respect to

the preparation of these and the other financial reports,

we apply internal procedures aimed at safeguarding the

completeness and accuracy of such information as part

of its disclosure controls and procedures. The Disclosure

Committee assists ASML and its CEO and CFO in

overseeing our disclosure activities and compliance with

applicable disclosure requirements arising under Dutch

and US law, and with other regulatory requirements.

These internal procedures are frequently discussed by

the Audit Committee and the Supervisory Board.

manage risk

The Supervisory Board has reviewed and approved

our 2025 Financial statements and our Sustainability

statements as prepared by the Board of Management.

PricewaterhouseCoopers Accountants N.V. (PwC) has

audited our financial statements and the Auditor’s

Report is attached to the financial statements.

External audit

In accordance with Dutch law, our external auditor

is appointed by the General Meeting, based on a

nomination by the Supervisory Board. The Supervisory

Board bases its nomination on the advice of the Audit

Committee and the Board of Management, which

annually provide a report to the Supervisory Board on

the performance of and relationship with the external

auditor, as well as its independence. Our current external

auditor, PwC, was first appointed by the General

Meeting in 2023 for the reporting year 2025.

On April 23, 2025, the General Meeting adopted the

proposal to appoint PwC as our external auditor for the

reporting year 2026. Furthermore, in the same general

meeting, PwC was appointed to perform a limited

assurance engagement and issue an assurance report

on the Sustainability Statements for the reporting years

2025 and 2026. This appointment was made in

anticipation of the CSRD’s transposition into Dutch law

and was conditional upon the CSRD implementation bill

taking effect for the reporting years. For the avoidance

of doubt, pending the formal transposition of the CSRD

into Dutch law, the Board of Management, with approval

of the Supervisory Board, appointed PwC to perform a

limited assurance engagement and issue an assurance

report in line with the CSRD for the reporting years

2025 and 2026.

The Audit Committee reviews and approves the external

auditor’s audit plan for the audits planned during the

financial year. Proposed services other than the financial

and sustainability statements should be pre-approved at

the beginning of the year (annual pre-approval) or during

the year in case of a particular engagement (specific pre-

approval). The annual pre-approval is based on a

detailed, itemized list of allowed services to be provided,

which is designed to ensure there is no management

discretion in determining whether a service has been

approved, and to ensure the Audit Committee is informed

of each service it is pre-approving.

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---	---	---

Financial reporting and audit (continued)

Dutch rules require strict separation of audit and advisory

services for Dutch public-interest entities, and US

regulations restrict services that can be provided by an

auditor of a US listed company. Dutch law prohibits the

acceptance by the external auditor of non-assurance

services when an audit is performed. The Audit

Committee monitors compliance with Dutch and US

rules on services provided by the external auditor.

The remuneration of the external auditor is approved by

the Audit Committee on behalf of the Supervisory Board,

and after consulting the Board of Management. The

Supervisory Board has delegated these responsibilities

to the Audit Committee, as it has the most relevant

insight and experience in this area.

– Principal accountant fees and services

In principle, the external auditor attends all Audit

Committee meetings. The external auditor’s findings

are discussed at these meetings. The Audit Committee

reports to the Supervisory Board on the topics discussed

with the external auditor, including the external auditor’s

reports regarding the audit of – as well as the content of

– the annual reports. Furthermore, the external auditor

may attend the Supervisory Board meeting in which the

annual external audit report is discussed. The external

auditor may also attend Supervisory Board meetings at

which the quarterly financial results are discussed.

The Audit Committee is to be informed by the

external auditor without delay if the external auditor

discovers irregularities in the content of the audit of

the financial reports.

The external auditor is present at our AGM to respond to

questions, if any, from shareholders about the auditor’s

report on the Consolidated financial statements.

Internal Audit

The role of our Internal Audit function is to assess our

systems of internal controls by performing independent

procedures such as risk-based operational audits, IT

and security audits and compliance audits. Internal Audit

reports directly to the Audit Committee and to a member

of the Board of Management, the CFO. The yearly

Internal Audit plan is discussed with and approved by

the Board of Management, the Audit Committee and

the Supervisory Board. The follow-up on Internal Audit

findings and progress made against the plan are

discussed on a quarterly basis with the Audit Committee.

The external auditor and Internal Audit department

have meetings on a regular basis. During 2025, a self-

assessment of the Internal Audit function was performed.

The results of the assessment were discussed with the

Board of Management and with the Audit Committee

in early 2026.

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Compliance with corporate governance requirements

Corporate information

ASML Holding N.V. is a holding company that operates

through its subsidiaries. We have operating subsidiaries

in Belgium, China, France, Germany, Hong Kong, Ireland,

Israel, Italy, Japan, Malaysia, Singapore, South Korea,

Taiwan, the Netherlands, the United Kingdom and the

United States.

US listing requirements

As our New York Shares are listed on the Nasdaq Stock

Market LLC, Nasdaq corporate governance standards in

principle apply to us. However, Nasdaq rules provide that

foreign private issuers may follow home-country practice

in lieu of the Nasdaq corporate governance standards

subject to certain exceptions. Our corporate governance

practices are primarily based on Dutch requirements. The

table on the right side of this page sets forth the practices

we follow in lieu of Nasdaq rules, pursuant to the

exception described above.

Compliance with the Corporate Governance Code

We closely follow developments in the area of corporate

governance and the applicability of the relevant corporate

governance rules for ASML. Any substantial changes to

our corporate governance structure or application of the

Corporate Governance Code will be submitted to the

General Meeting for discussion.

We are of the opinion that we fully comply with the

applicable principles and best practice provisions of the

Dutch Corporate Governance Code as in effect for the

financial year 2025.

The Board of Management and the Supervisory Board,

Veldhoven,

February 25, 2026

Practices followed by ASML in lieu of Nasdaq rules
Quorum	ASML does not follow Nasdaq’s quorum requirements applicable to meetings of ordinary<br><br>shareholders. In accordance with Dutch law and generally accepted Dutch business practice,<br><br>ASML’s Articles of Association provide that there are no quorum requirements generally applicable<br><br>to general meetings of shareholders.
Solicitation of<br><br>proxies	ASML does not follow Nasdaq’s requirements regarding the solicitation of proxies and the provision<br><br>of proxy statements for general meetings of shareholders. ASML does furnish proxy statements and<br><br>solicit proxies for the General Meeting. Dutch corporate law sets a mandatory (participation and<br><br>voting) record date for Dutch listed companies at the 28th day prior to the date of the General<br><br>Meeting. Shareholders registered at such a record date are entitled to attend and exercise their<br><br>rights as shareholders at the General Meeting, regardless of a sale of shares after the record date.
Distribution of<br><br>Annual Report	ASML does not follow Nasdaq’s requirement regarding distribution to shareholders of copies of<br><br>an annual report containing audited Financial statements prior to our AGM. The distribution of our<br><br>annual reports to shareholders is not required under Dutch corporate law or Dutch securities laws,<br><br>or by Euronext Amsterdam. Furthermore, it is generally accepted business practice for Dutch<br><br>companies not to distribute annual reports. In part, this is because the Dutch system of bearer<br><br>shares has made it impractical to keep a current list of holders of the bearer shares in order to<br><br>distribute the annual reports. Instead, we make our Annual Report available at our corporate head<br><br>office in the Netherlands (and at the offices of our Dutch listing agent, as stated in the convening<br><br>notice for the meeting) no later than 42 days prior to convocation of the AGM. In addition, we post<br><br>a copy of our annual reports on our website prior to the AGM.
Equity<br><br>compensation<br><br>arrangements	ASML does not follow Nasdaq’s requirement to obtain shareholder approval of stock option or<br><br>purchase plans or other equity compensation arrangements available to officers, directors or<br><br>employees. It is not required under Dutch law or generally accepted practice for Dutch companies<br><br>to obtain shareholder approval of equity compensation arrangements available to officers, directors<br><br>or employees. The General Meeting adopts the Remuneration Policy for the Board of Management,<br><br>approves equity compensation arrangements for the Board of Management and approves the<br><br>remuneration for the Supervisory Board. Equity compensation arrangements for employees are<br><br>adopted by the Board of Management within limits approved by the General Meeting. The<br><br>Remuneration Committee evaluates the achievements of individual members of the Board of<br><br>Management with respect to the short- and long-term quantitative performance, and the full<br><br>Supervisory Board evaluates the quantitative performance criteria.

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In conversation with Nils Andersen

Chair of the Supervisory Board

“ We support ASML to

remain competitive

and responsive to

customer needs”

Nils Andersen

Chair of the Supervisory Board

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In conversation with Nils Andersen (continued)

Chair of the Supervisory Board

The Supervisory Board supervises

and advises the Board of

Management in performing their

management tasks and setting

the direction for ASML, focusing

on long-term and sustainable

value creation. The members

of the Supervisory Board are

fully independent.

In this interview, Supervisory

Board Chair Nils Andersen outlines

the key activities of 2025 and his

expectations for the year ahead.

Q	What were the highlights<br><br>of 2025, from a Supervisory<br><br>Board perspective?

The year was marked by market

uncertainties and a continuously challenging

geopolitical situation that included export

restrictions and tensions between the

US and China. It is to the great credit

of our Board of Management that it was

able to create a solid performance during

a period with dynamic markets and

geopolitical uncertainty.

Beyond the financial results and

technological breakthroughs, we were

pleased to see management continue to

carry out a significant amount of work on

reinforcing ASML’s competitiveness and

enabling it to invest time and resources in

the reduction of cycle times, simplification

of the business, becoming more agile and

improving productivity. The aim is to make

sure that we are well positioned to exploit

opportunities for future growth.

We supported management throughout

these initiatives and were impressed by how

they have stepped up the speed of change

and sharpened their focus on the strategic

objectives. ASML’s culture will play a vital

role in enabling this shift – the challenge for

all of us is how to evolve the culture while

continuing to embrace the qualities that

have enabled the company to become

established as a global leader in innovation.

In September 2025, following discussions

with the Board of Management on the

growing importance of AI, the company

finalized an investment in the French-based

AI leader Mistral AI. Bringing together

ASML’s leading capabilities in innovation

and knowledge of the technology ecosystem

along with Mistral AI’s expertise, we believe

this agreement will allow both companies to

innovate faster together. We believe it will

also help us enhance our products,

processes and overall performance.

Q	How does the Supervisory<br><br>Board support the delivery<br><br>of ASML’s strategy?

During the year, we held nine formal

meetings with the Board of Management,

as well as regular informal interactions.

Together, we covered a wide range of

topics, including discussions on the

business model, the production footprint,

the investment in Mistral AI and of course,

the geopolitical situation. Supervisory Board

members have strong skills and experience

across many different sectors and

disciplines – and as a group, we are able

to draw on these qualities to advise

management on how to navigate the

current political and business climate.

We supported

management on

reducing cycle

time, simplifying

the business,

becoming more

agile and improving

productivity.”

Nils Andersen

Chair of the Supervisory Board

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In conversation with Nils Andersen (continued)

Chair of the Supervisory Board

For example, customers have indicated

that there is a need for innovation around

3D integration to support their ambitions,

and the Supervisory Board therefore spent

considerable time learning about and

contributing to discussions around the

topics of bonding and advanced packaging.

In addition, the Supervisory Board

continued the practice established

previously of supplementing our formal

meetings with informal sessions to broaden

our understanding of matters that impact

the business or are of particular relevance

to customers or suppliers.

Finally, we provided advice to the Board of

Management on the intended changes to the

Technology and IT organizations. We

recognize these changes are not easy, but

as a Supervisory Board we understand and

support the rationale driven by enabling

ASML to remain as agile and competitive as

possible in a rapidly evolving industry.

Q	What role does stakeholder<br><br>engagement play in the work<br><br>of the Supervisory Board?

We engaged with many of our stakeholders

during the year.

We interacted extensively with our

shareholders on a range of matters including

remuneration, which is a major consideration

for many. With respect to our suppliers,

whose support we depend on to maintain

and enhance our technology leadership,

I met with many important members of our

ecosystem at the annual Suppliers’ Day.

This allowed me to gain greater understanding

of how our partners are striving to deliver

the products and services we need and how

we can help them continue adding value

consistent with our role and standards.

We also visited some of our key customers

during the year. These occasions enable us

to understand exactly what our customers

need from us – and how we can best meet

those demands.

Our people are incredibly important

stakeholders. In addition to regular meetings

with the Works Council, we visited the San

Diego site and the new US Training Center.

Conversations at these events underlined

yet again the tremendous role that our

people play in our company’s success,

while also giving us valuable insight into the

working environment and culture required

to help them realize their full potential.

Q	What are your thoughts on<br><br>the changes to the<br><br>Supervisory Board in 2025?

At the 2025 AGM, we said goodbye to

Annet Aris, who has been a key member

of the Supervisory Board since 2015 and

its Vice Chair since 2021. On behalf of the

Supervisory Board, I would like to place

on record my thanks for the way she has

applied her knowledge and unique skill set

to a wide range of issues over the last decade.

We wish her the very best for the future.

Karien van Gennip was appointed to the

Supervisory Board at the 2025 AGM.

Karien is a member of the ESG Committee

and the Remuneration Committee, and

brings extensive leadership experience

across professional services, financial

services and public policy.

Stability is of course an important

consideration for any team, and the AGM

also saw the re-appointment of Birgit Conix

to the Supervisory Board for her second

term in office, which expires in 2029.

Q	What is the Supervisory<br><br>Board’s focus for 2026<br><br>and beyond?

The coming 12 months will see a steady

continuation of the work carried out in 2025,

with the Supervisory Board working closely

with the Board of Management as the business

prepares for future growth. The focus will be

on making sure that ASML remains

competitive, agile and flexible to continue

to meet customer needs going forward.

Geopolitical matters are likely to remain

challenging, but this is a situation we have

managed well in the past, and I am confident

we have the experience and the skills to

do so once again.

ESG and culture will continue to be

important areas of focus for us, particularly

our employees. Our teams are extremely

talented, hardworking and motivated by the

opportunity to work at the leading edge of

what is possible. They are making vital

contributions to the development of solutions

that will enable the world to adapt to many

of its toughest challenges – and we must

continue to do all we can to support them.

Our track record for innovation will be

further bolstered at the 2026 AGM with the

intended appointment of Marco Pieters as

a member of the Board of Management in

the role of Chief Technology Officer. Marco

has a long history of strong contributions

to innovation at ASML, and I am confident

that his appointment to the Board of

Management will help drive our efforts

to new levels.

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Supervisory Board focus in 2025

9	44%
Supervisory<br><br>Board meetings	Female<br><br>members
(2024: 7)	(2024: 44%)
98%	4.1
Attendance<br><br>rate	Years average<br><br>tenure
(2024: 95%)	(2024: 4.2)
In a complex geopolitical<br><br>environment, our strategy<br><br>centered on resilience and<br><br>sustainable long-term value<br><br>creation.”
Nils Andersen
Chair of the Supervisory Board			Supervisory Board focus in 2025
---	---	---
Throughout 2025, the Supervisory Board agenda was centered on the strategy<br><br>and its execution, financial and operational performance, business developments,<br><br>risk management, and its people and organization. Based on the strategic priorities<br><br>for ASML as agreed in the annual strategy review, several topics were extensively<br><br>discussed by means of deep dives, allowing a focused and in-depth review.
	Strategy and sustainable long-term value creation
Focus areas 2025
•Annual strategy review<br><br>•Geopolitical strategy<br><br>•ASML operating model<br><br>•Semiconductor industry and lithography market<br><br>•High Productivity Platform		•Technology and holistic lithography roadmap<br><br>•ERP migration<br><br>•Global footprint<br><br>•People strategy<br><br>•AI strategy
	This year we have been elevating our strategy and how<br><br>we can continue to deliver long-term and sustainable<br><br>value for all our stakeholders. As part of our annual<br><br>strategy review, we have been refining our strategic<br><br>direction and choices for our key dimensions in<br><br>products, technology and operational excellence.<br><br>We reaffirmed our support for the overall strategic<br><br>direction and reviewed the principal strategic<br><br>challenges and priority areas for further development<br><br>during the annual strategy review. The Supervisory<br><br>Board provided its perspectives on several topics<br><br>such as semiconductor and lithography market<br><br>developments, Artificial Intelligence strategy, people<br><br>strategy, cost and flexibility, future technology and<br><br>innovation roadmap, and ASML’s global footprint.	For 2025, we remained fully aligned with ASML’s<br><br>strategy, anchored in six pillars that are ASML’s<br><br>strategic priorities: 1. Deepen customer trust;<br><br>2. Extend our technology and holistic product<br><br>roadmap; 3. Strengthen ecosystem relationships; 4.<br><br>Create an exceptional workplace; 5. Drive operational<br><br>excellence; and 6. Deliver on ESG sustainability.<br><br>As part of the annual strategy review, we held dedicated<br><br>workshops focused on our Global footprint, 3D device<br><br>integration, technology and holistic product roadmap,<br><br>semiconductor and lithography market, Artificial<br><br>Intelligence, High Productivity Platform and ERP<br><br>migration. These sessions enable an engaged and<br><br>focused discussion between the Supervisory Board<br><br>and Board of Management on key strategic matters,<br><br>and we highly value this way of contributing to the<br><br>strategic decision-making process.

As the Supervisory Board, we supervise and advise the

Board of Management in performing its management

tasks and setting the direction for ASML. We focus on

long-term and sustainable value creation, with the goal

of ensuring that the Board of Management pursues a

strategy that secures our leading position as a supplier

of holistic lithography solutions to the semiconductor

industry. We seek to maintain an appropriate system

of checks and balances, provide oversight, evaluate

performance and give advice where required or

requested. Through good governance, we can help to

ensure ASML acts in the best interests of the company

and its stakeholders. Here, we report on the Supervisory

Board’s activities in 2025.

The year 2025 has been a year of maintaining strong

operational performance and strategic progress.

It also was a year with many challenges related to

the geopolitical and market situation. From a strategic

perspective, we continued to evaluate and improve our

strategy, looking at risks and opportunities in the area

of holistic lithography but also in new areas such as

AI and advanced packaging. The intended appointment

of Marco Pieters as Board of Management member in

the position of Chief Technology Officer at the 2026

AGM underscores the importance of continued

innovation for ASML.

On the operational side there was focus on the

operational model and efficiency improvements after

several years of strong growth, thereby improving

our competitiveness.

The Supervisory Board will continue to support ASML’s

Board of Management in pushing the boundaries of

innovation and executing on our strategy across all our

business areas.

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Supervisory Board focus in 2025 (continued)


Focus areas 2025
	Deep dive: Geopolitics
•Geopolitics<br><br>•Strategic risks<br><br>•(IT) Security
	As a Supervisory Board we closely followed<br><br>geopolitical developments, including developments<br><br>related to export controls and tariffs and we looked<br><br>at potential impacts for ASML and mitigation<br><br>measures. We provided the Board of Management<br><br>with advice concerning amongst others advocacy,<br><br>scenarios, risk, engagement with stakeholders and<br><br>we also invited external experts on geopolitics to<br><br>provide their outside views. We highly value these<br><br>discussions, as they bring additional perspectives to<br><br>the Supervisory Board.
Overseeing the company’s risk management continues<br><br>to be a key element of our responsibilities, which<br><br>includes the risk management process and its<br><br>effectiveness. More information on risk management<br><br>can be found in the section of the Audit Committee.<br><br>The Supervisory Board’s discussions with the Board<br><br>of Management on strategy and execution are anchored<br><br>in risk awareness, factoring in external developments,<br><br>risk appetite, and mitigation approaches. In 2025, we<br><br>continued to pay close attention to the risks related to<br><br>geopolitical developments, not only looking at short<br><br>term developments, but also assessing the potential<br><br>long-term risks to ASML’s strategy and business.<br><br>Furthermore, the Supervisory Board spent time on<br><br>looking into strategic risks in the area of technology<br><br>and markets in dedicated deep dive sessions. On (IT)<br><br>Security, the Supervisory Board received regular updates<br><br>in accordance with our governance framework to<br><br>oversee and follow-up on related developments.		Strategy and sustainable long-term value<br><br>creation (continued)
---

Other strategic topics discussed throughout the year

included the geopolitical strategy and transformation

programs in the following areas: the integrated operating

model, the supply chain, customer, technology, and the

people strategy.

We see our customers starting to be more comfortable

about the sustainability of the long-term AI demand, and

together with ongoing progress against strategic

priorities, we maintain confidence in ASML’s long-term

growth and sustainable value creation.

Spotlight: Artificial Intelligence (AI)
The Supervisory Board discussed with the Board of<br><br>Management developments and opportunities in the<br><br>area of AI. We performed a deep dive as part of our<br><br>annual strategy session and discussed ASML’s<br><br>partnership with, and investment in, Mistral AI. As<br><br>a Supervisory Board we are fully supportive of the<br><br>Company’s AI strategy, which is aimed at bringing<br><br>important benefits to ASML and our customers.<br><br>While the landscape we operate in remains volatile,<br><br>we are confident ASML is well-positioned to<br><br>effectively harness the AI-driven market momentum.		Market and business developments
---

Focus areas 2025

•Market outlook, customers and demand drivers

•Update on technology and business developments

across ASML’s main product areas

•Opportunities in AI and advanced packaging

We closely monitored the market and business

developments and saw management address the

challenges related to macroeconomics, semiconductors

and geopolitics as one of its highest priorities. As a

technology leader in the semiconductor industry,

technological progress is one of ASML’s top priorities.

We closely followed the execution of the product and

technology roadmap and are pleased to see ASML

making good progress on further enhancements to our

EUV, DUV and metrology and inspection systems. We

also looked into new business opportunities in areas

such as AI and advanced packaging.

Other areas of focus during 2025 were export controls

and tariffs. We closely followed and discussed with the

Board of Management developments in this area and

the implications for ASML.

We are confident that ASML is well positioned to

continue to deliver long-term growth and stakeholder

value in a sustainable manner.

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Supervisory Board focus in 2025 (continued)

	Financial and operational performance
Focus areas 2025
	•Annual Results and Annual Report<br><br>•External audit report<br><br>•Statutory interim report	•Cash return including dividend policy, final and<br><br>interim dividend, share buyback program and<br><br>share cancellation<br><br>•ERP migration<br><br>•Cost, flexibility and order lead time
	We reviewed the annual and interim Financial<br><br>statements, including non-financial information, the<br><br>quarterly results and accompanying press releases,<br><br>as well as the year-end audits of the US GAAP and<br><br>EU-IFRS Financial statements.<br><br>As part of the financial updates the Supervisory Board,<br><br>assisted by the Audit Committee, reviewed ASML’s<br><br>financing and cash-return policies. The Supervisory<br><br>Board approved the Board of Management’s proposals<br><br>for the final and interim dividends paid in 2025. Furthermore,<br><br>we monitored the execution of the 2023–2025 share<br><br>buyback program. The Supervisory Board also discussed<br><br>and approved the 2026-2028 share buyback program,<br><br>which was announced on January 28, 2026.	Given the challenging economic climate – and because<br><br>ASML decided to support customers and suppliers in<br><br>navigating this situation – attention was paid to free<br><br>cash flow.<br><br>Furthermore, we paid attention to the enterprise<br><br>resource planning (ERP) migration program, which<br><br>was identified as one of the key focus areas in<br><br>strategy execution.<br><br>Another area of focus during 2025 was cost and<br><br>flexibility. While our outlook for future growth remains<br><br>strong, short-term volatility will occur. We reviewed<br><br>together with the Board of Management the way to<br><br>address challenges related to a down cycle while at the<br><br>same time preparing for the upcycle when it occurs,<br><br>and we were kept informed about the efforts aimed at<br><br>reducing order lead times.
	People and organization
---	---	---
Focus areas 2025
	•People strategy<br><br>•Results of employee engagement survey<br><br>•Operating model<br><br>•Composition of Board of Management	•Composition of the Supervisory Board<br><br>•Remuneration Policy for the Board of Management<br><br>•Remuneration of the Supervisory Board
	The topics of people and organization continued to<br><br>be key areas of focus for the Supervisory Board – we<br><br>believe these are of critical importance for the future<br><br>success of ASML, building a great place to work, and<br><br>enabling the attraction and development of the right<br><br>talent. On several occasions, we were provided with<br><br>updates on Human Resources and Organization<br><br>(HR&O). Topics covered included the People Strategy,<br><br>progress made on the ASML leadership program, the<br><br>results of the annual employee engagement survey<br><br>and inclusion and diversity (I&D).<br><br>Specific attention was paid to evaluating the ASML<br><br>operating model following the changes in the customer<br><br>and supply chain organizations in 2023 and 2024 and<br><br>ASML’s leadership transition in 2024. The Supervisory<br><br>Board also advised the Board of Management in<br><br>relation to the intended changes in the Technology and<br><br>IT organizations as announced on January 28, 2026.	The Supervisory Board also discussed in their plenary<br><br>meetings the composition and remuneration of the<br><br>Board of Management and the Supervisory Board.<br><br>Detailed information about these topics can be found<br><br>in the reports of the Selection and Nomination<br><br>Committee and the Remuneration Committee.
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Supervisory Board focus in 2025 (continued)

Deep dive: Technology – 3D device integration

As a Supervisory Board, we also reviewed industry needs and the evolving customer roadmaps. Together with the Board of Management, we recognize that, while 2D packaging remains relevant, 3D packaging is becoming more important. We fully support the Board of Management entering into this technology. In line with ASML’s plans to support our customers in the 3D integration space, we saw ASML shipping its first product serving the advanced packaging market. We are pleased with the achievement of this milestone, and we are proud of our people working everyday to improve our ASML technology.

Additional topics

	Governance and stakeholders
Focus areas 2025
•Supervisory Board evaluation<br><br>•AGM agenda<br><br>•Legal and Corporate governance developments		•AGM update<br><br>•Engagements with stakeholders
We regularly discussed ASML’s relationship with its<br><br>shareholders, and Supervisory Board members engaged<br><br>with shareholders throughout the year on topics such<br><br>as ASML’s strategy and performance, governance and<br><br>ESG. The Remuneration Committee engaged with a<br><br>variety of shareholders and other stakeholders regarding<br><br>remuneration. More information can be found in the<br><br>Remuneration Report.<br><br>A Supervisory Board delegation held two formal<br><br>meetings with the Works Council in 2024, exchanging<br><br>views on ASML’s strategy and priorities, and performance<br><br>and challenges – in particular related to the growth and<br><br>increased complexity of its business, as well as the<br><br>challenging external circumstances. In this context,<br><br>employee well-being and engagement were also<br><br>discussed. During 2025 we also engaged with the<br><br>Works Council on specific topics, such as Board of<br><br>Management and Supervisory Board remuneration<br><br>and we collaborated with the Works Council on the<br><br>topic of composition of the Supervisory Board, given<br><br>the Works Council’s (enhanced) right of recommendation,<br><br>which led to the appointment of Karien van Gennip as<br><br>a Supervisory Board member at the 2025 AGM.		We met with one of ASML’s key suppliers in an online<br><br>session, and the Chair of the Supervisory Board<br><br>attended the annual Suppliers’ Day.<br><br>At the end of 2025, we visited two of ASML’s customers<br><br>and were informed about their roadmaps, business<br><br>development and challenges.<br><br>These stakeholder interactions are highly valuable<br><br>for the Supervisory Board because they increase<br><br>our understanding of ASML’s stakeholders and the<br><br>challenges they face. The Supervisory Board also<br><br>discussed legal and corporate governance<br><br>developments, including the revised Dutch Corporate<br><br>Governance Code 2025, which introduced the risk<br><br>management statement.

Recurring topics at each Supervisory Board meeting

are a CEO report focusing on market and customer

developments, share price development and investor

perceptions, performance on business priorities including

ESG, a financial update and the Supervisory Board

committee reports.

Other topics considered during Supervisory Board

meetings in 2025 included:

•Compliance with rules and regulations: We monitored

compliance with rules and regulations including the

Dutch Corporate Governance Code and were kept

informed on key legal matters, including developments

in export control regulations.

•Supervisory Board composition, profile and

functioning: We extensively discussed our own

composition, profile and functioning, the composition

and functioning of Supervisory Board committees,

and the composition and functioning of the Board of

Management. More information can be found in the

report of the Selection and Nomination Committee.

•Board of Management composition and performance:

We monitored the performance of the Board of

Management and decided on its remuneration targets

and target achievements. More information can be

found in the reports of the Selection and Nomination

Committee and the Remuneration Committee.

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Meetings and attendance

The Supervisory Board meets at least four times

per year in accordance with its annual schedule

and whenever the Chair, one or more of its members,

or the Board of Management requests a meeting.

In 2025, the Supervisory Board held nine meetings.

Of these, four were held virtually and five were in

person. Three in-person meetings were held at

ASML's headquarters and two were held offsite in

the Netherlands and in Phoenix, the United States. In

addition, there were several informal meetings, including

educational sessions and interactions among Supervisory

Board and/or Board of Management members.

Supervisory Board meetings and Supervisory Board

committee meetings are held over several days,

ensuring time for review and discussion. At each

meeting, the Supervisory Board members discuss

the goals and outcome of the meeting – as well as

topics such as the functioning and composition of the

Supervisory Board and the Board of Management.

Also discussed during each meeting are the reports

from the different committees of the Supervisory Board.

The Supervisory Board meetings and those of the five

Supervisory Board committees were well attended, as

shown in the table on the right.

In addition to the Supervisory Board members, the

Supervisory Board meeting attendance overview
	98%
	Attendance rate
Name		Supervisory<br><br>Board	Audit<br><br>Committee	Remuneration<br><br>Committee	Selection and<br><br>Nomination<br><br>Committee	Technology<br><br>Committee	ESG<br><br>Committee
Nils Andersen (Chair)		9/9	10/10	n/a	4/4	n/a	n/a
Terri Kelly (Vice Chair)		8/9	n/a	7/7	4/4	n/a	n/a
Birgit Conix		9/9	10/10	n/a	n/a	n/a	3/3
Mark Durcan		9/9	n/a	n/a	4/4	5/5	n/a
Warren East		9/9	10/10	n/a	4/4	5/5	n/a
Alexander Everke		9/9	n/a	7/7	n/a	n/a	3/3
Karien van Gennip1		7/7	n/a	4/4	n/a	n/a	2/2
Jack de Kreij		9/9	10/10	7/7	n/a	n/a	n/a
An Steegen		8/9	n/a	n/a	n/a	5/5	3/3
Annet Aris1		2/2	n/a	3/3	1/1	2/2	n/a
1.Attendance data are reported from each member’s formal date of appointment through the formal end date of their appointment, as<br><br>applicable. At the AGM held on 23 April 2025, Karien van Gennip was appointed to the Supervisory Board and joined the Remuneration<br><br>Committee and the ESG Committee. Annet Aris stepped down per the same AGM.

members of the Board of Management are invited to the

Supervisory Board meetings. All Board of Management

members were present at the Supervisory Board

meetings in 2025. Members of senior management

are regularly invited to provide updates on topics within

their area of expertise, giving the Supervisory Board the

opportunity to become acquainted with a variety of ASML

managers. We consider this very useful in connection

with ASML’s talent management and succession-

planning activities.

Meetings of the Supervisory Board<br><br>The majority of the Supervisory Board and<br><br>committee meetings held in 2025 were in person,<br><br>but the Supervisory Board also met virtually on some<br><br>occasions. In addition to plenary discussions, to<br><br>optimize interaction, break-out sessions in smaller<br><br>groups were organized for the discussion of key<br><br>strategic topics. To further maximize the time available<br><br>for discussion, preview videos were used alongside<br><br>written meeting materials as part of the meeting<br><br>preparation process.
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Composition and skills

The Supervisory Board determines the number of

members required to perform its duties – the minimum

being three members. The Supervisory Board currently

consists of nine members. We attach great importance

to our composition, independence and diversity,

and strive to meet all the associated guidelines and

requirements. To ensure an appropriate and balanced

composition, we spend considerable time on an

ongoing basis discussing our profile, composition

and rotation schedule.

Independence

In order to properly perform our tasks, we consider

it very important that our members are able to act

critically and independently of one another, the

Board of Management and other stakeholders. Our

independence and that of our individual members is

assessed on an annual basis. All current members

of the Supervisory Board are fully independent – as

defined by the Dutch Corporate Governance Code

and under Nasdaq rules.

Diversity

The current composition of ASML’s Supervisory Board

is diverse in terms of gender, nationality, knowledge,

experience and background, and has a suitable level

of experience in the financial, economic, technological,

social and legal aspects of international business.

Read more in Corporate governance – Other Board-related matters

Supervisory Board skills
Board member						General skills										ASML skills
Nils Andersen (Chair)		•		•		•		•				•						•		•
Terri Kelly (Vice Chair)		•				•		•				•						•		•
Birgit Conix		•		•				•		•		•						•		•
Mark Durcan		•		•		•		•				•		•		•		•		•
Warren East		•		•		•		•		•		•		•		•		•		•
Alexander Everke		•		•		•		•		•		•		•		•		•		•
Karien van Gennip		•		•		•		•		•		•
Jack de Kreij		•		•		•		•		•		•		•						•
An Steegen		•						•		•		•		•		•		•		•
	(Former)<br><br>Executive<br><br>Board<br><br>member<br><br>of (listed)<br><br>international<br><br>company		Finance/<br><br>governance		Remuneration		Human<br><br>resources<br><br>/employee<br><br>relations		IT/digital<br><br>/cyber		ESG		Semiconductor<br><br>ecosystem		Deep<br><br>understanding<br><br>of semiconductor<br><br>technology		High-tech<br><br>manufacturing/<br><br>integrated<br><br>supply chain<br><br>management		Business<br><br>in Asia

(Re)appointments in 2025

The appointment terms of Annet Aris and Birgit Conix

expired at the 2025 AGM. Annet Aris did not stand for

re-election after having served on the Supervisory Board

for ten years. Karien van Gennip was appointed at the

2025 AGM for a four-year term. In addition, Birgit Conix

was reappointed for a second term of four years.

Changes in composition in 2026

At the 2025 AGM, the Supervisory Board gave notice

that the appointment terms of Terri Kelly, Alexander

Everke and An Steegen would expire per the 2026 AGM.

The agenda and explanatory notes for the 2026 AGM will

contain further information about the nominations for

(re)appointment of candidates for the Supervisory Board.

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Composition and skills (continued)

Induction and training

We have a comprehensive induction program in place

for newly appointed members, designed to ensure they

gain a good understanding of our business and strategy

as well as the key risks we face. This includes meetings

with other Supervisory Board and Board of Management

members, a technology tutorial and detailed presentations

by our business, operational and corporate sectors. A

site visit and factory tour are also part of the program.

In addition to these fixed elements, additional induction

sessions may be planned depending on the wishes of

the members concerned.

As part of its continuing education, the Supervisory

Board is provided with regular deep-dives on a variety

of topics – both in plenary meetings and in the meetings

of the Supervisory Board’s committees, as well as

during dedicated educational sessions. During 2025,

educational sessions were held on semiconductor

industry trends, as well as on selected suppliers

and customers.

Furthermore, external speakers or advisers attended

various meetings to provide outside-in views on topics

such as technology developments, geopolitics and

executive remuneration.

The Supervisory Board also performed site visits, as

described in more detail in other parts of this Supervisory

Board report. The picture on the right relating to the

opening of our new technical training academy in

Phoenix was taken during such a site visit.

ASML_Corporate-Gov_Supervisory-Board-Report_Evaluation_Bg_v4.jpg

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Evaluation

We greatly value the structural and ongoing evaluation

Evaluation process 2025
1		Self-assessment	2		Process	3		Internal outreach	4		Feedback	5		Actions and follow-up
	Supervisory Board and<br><br>Selection and Nomination<br><br>Committee agree on the<br><br>scope and approach of<br><br>the review.			The process focuses on<br><br>the internal evaluation of the<br><br>functioning of the Supervisory<br><br>Board and its Committees.			The Supervisory Board and<br><br>the Board of Management<br><br>complete online surveys,<br><br>which are followed by 1-1<br><br>sessions with individual<br><br>Supervisory Board members.			The Supervisory Board<br><br>and Board of Management<br><br>consider the outcome of<br><br>the evaluation, assessing the<br><br>effectiveness of its practices<br><br>and functioning.			New initiatives to improve<br><br>the Supervisory Board’s<br><br>effectiveness are identified<br><br>and actioned, becoming<br><br>part of next year’s<br><br>evaluation process.
	Evaluation themes		•SB composition<br><br>•SB meetings and support			•SB dynamics (including<br><br>with the BoM)<br><br>•SB Chair			•SB committees<br><br>•Strategic oversight			•Risk oversight<br><br>•Change and forward outlook

process as a means of ensuring continuous improvement

in our ways of working. Each year, assisted by the

Selection and Nomination Committee, we evaluate

the composition, competence and functioning of the

Supervisory Board and its committees, the relationship

between the Supervisory Board and the Board of

Management, its committees, its individual members

and the chairs of both the Supervisory Board and its

committees, the composition and functioning of the

Board of Management and its individual members,

and the education and training needs of the Supervisory

Board and Board of Management members.

In principle, the Supervisory Board evaluation is

performed once every three years with the support of an

external adviser. In the other two years, we use a written

questionnaire for self-assessment followed by one-to-one

meetings between the Chair and individual members.

The 2025 evaluation of the Supervisory Board and

its committees was facilitated internally. The process

consisted of completion of an online survey, followed

by interviews with all individual Supervisory Board

members. The main evaluation themes were Supervisory

Board composition, meetings and support, dynamics,

strategic and risk oversight and priorities for change and

outlook. The functioning of the SB Committees was also

assessed, and a review was performed of the Chair’s

performance. The Board of Management members

performed an upward review of the Supervisory Board.

The results of the Supervisory Board evaluation were

discussed in a Supervisory Board-only session in early

2026

. Also, a joint session between the Supervisory

Board and the Board of Management session was held

to reflect on the core findings. Finally, the Supervisory

Board Chair conducted one-to-one meetings with

individual Supervisory Board members to reflect on the

functioning of the Supervisory Board and ways to further

enhance it going forward.

The conclusion of the 2025 evaluation was that the

Supervisory Board remains highly effective, with strong

governance fundamentals, robust committee coverage,

and a culture of trust, open dialogue, and constructive

challenge, both within the Supervisory Board as well as

with the Board of Management, that supports rigorous

strategic and risk oversight. Key areas of improvement

relate to agenda setting, sharpening pre‑reads and

continuous education (for example on AI, geopolitics,

and markets). Succession planning for Supervisory

Board and Board of Management was identified as a

continuous focus point, alongside reviewing the Supervisory

Board profile in order to further enhance capabilities in

innovation, the semiconductor ecosystem, Asia experience

and geopolitics. Another focus point was further expanding

stakeholder engagement, with resulting insights integrated

into strategy and risk agendas.

The Board of Management evaluated its own

functioning in 2025, focusing on its role, responsibilities

and performance collectively, and on the functioning of

its individual members – as well as in light of the changes

in the Board of Management that became effective at the

2024 AGM. This evaluation took place in offsite meetings

throughout the year. Important aspects addressed include

the Board of Management’s strategic focus, stakeholder

involvement, people and organization, Board dynamics

and Board of Management organization.

The overall conclusion was that ASML continues to

have a well-functioning Board of Management and that

the focus on key strategic topics further increased over

the last 12 to 18 months. The functioning of the Board

of Management and its individual members was also

discussed with the Supervisory Board and its Selection

and Nomination Committee.

ASML_Corp-Gov_Super-Board-Rep_Super-Board-Committees_v1.jpg

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Supervisory Board committees

	Supervisory Board
Audit<br><br>Committee	ESG<br><br>Committee	Remuneration<br><br>Committee	Selection and<br><br>Nomination<br><br>Committee	Technology<br><br>Committee
Assisting in<br><br>overseeing the integrity<br><br>and quality of our<br><br>financial reporting<br><br>and the effectiveness<br><br>of risk management<br><br>and controls	Overseeing the<br><br>ESG sustainability<br><br>strategy and<br><br>performance aimed<br><br>at sustainable, long-<br><br>term value creation	Overseeing the<br><br>development and<br><br>implementation of<br><br>the remuneration<br><br>policies, in cooperation<br><br>with the Audit and<br><br>Technology Committee	Assisting with<br><br>the preparation of<br><br>the selection criteria<br><br>and appointment<br><br>procedures for the<br><br>Supervisory Board<br><br>and Board of<br><br>Management	Providing advice<br><br>with respect to our<br><br>technology plans<br><br>required to execute<br><br>the business strategy
4	4	4	4	3
Members	Members	Members	Members	Members
Read more on page 103 >	Read more on page 106 >	Read more on page 117 >	Read more on page 108 >	Read more on page 110 >

The Supervisory Board has five standing committees,

with members appointed by the Supervisory Board

from among its members. The full Supervisory Board

remains responsible for all decisions including those

prepared by its committees.

The five committees of the Supervisory Board prepare

and support the decision-making of the full Supervisory

Board. In the plenary Supervisory Board meetings, the

chairs of the committees report on the items discussed

in the committee meetings. In addition, the meeting

documents and minutes of the committee meetings are

available to all Supervisory Board members, enabling the

full Supervisory Board to make appropriate decisions.

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Supervisory Board committees (continued)

The Audit Committee is provided with all relevant

Audit Committee
	The Audit Committee assists<br><br>the Supervisory Board in<br><br>overseeing the integrity and<br><br>quality of our financial reporting<br><br>and the effectiveness of the<br><br>internal risk management and<br><br>internal control systems.
	Members
	Jack de Kreij (Chair)
Amidst geopolitical<br><br>uncertainty and<br><br>market volatility, we<br><br>focused on<br><br>disciplined risk<br><br>management and<br><br>resilience in support<br><br>of ASML's long-term<br><br>value creation.”	Nils Andersen
	Birgit Conix
	Warren East
	The members of the Audit Committee are all<br><br>independent members of the Supervisory Board.<br><br>The Supervisory Board has determined that both Jack<br><br>de Kreij and Birgit Conix qualify as Audit Committee<br><br>financial experts pursuant to section 407 of the<br><br>Sarbanes-Oxley Act and Dutch statutory rules, taking<br><br>into consideration their extensive financial<br><br>backgrounds and experience.
Jack de Kreij
Chair of the Audit Committee

information to be able to adequately and efficiently

supervise the preparation and disclosure of financial

information. This includes information on the status

and development of the semiconductor market, the

application of EU-IFRS and US GAAP, the choice of

accounting policies, and the work of the internal and

external auditor.

Main responsibilities

Advising the Supervisory Board in relation to:

•Overseeing the integrity and quality of ASML’s

Financial statements and sustainability disclosures,

and submitting proposals to ensure such integrity

•Overseeing the accounting, financial and

sustainability reporting processes and the audits

of the Financial statements

•Overseeing the effectiveness of our internal risk

management and control systems, including

compliance with the relevant legislation and

regulations, and the effect of codes of conduct

•Overseeing the integrity and effectiveness of our

system of disclosure controls and procedures, and

our system of internal controls over financial and

sustainability reporting

•Overseeing the external auditor’s qualifications,

independence and performance, and determining

its compensation

•Overseeing the functioning of Internal Audit

•Overseeing the financing strategy and cash-flow

developments

Recurring agenda topics

•Financial update incl. financing policy

•Review of the quarterly financial results and

press release

•Accounting and internal control

•Risk, Business Assurance & Security

•External audit

•Internal audit

•Disclosure Committee report

•Legal matters report

•Ethics and compliance

Attendance

In addition to the members of the Audit Committee,

the external auditor and the internal auditor have a

standing invitation for Audit Committee meetings

and attended all such meetings in 2025. The CEO,

CFO, Head of Finance, Head of Risk and Business

Assurance & Security, Corporate Chief Accountant,

Chief Legal Officer, and Head of Internal Audit are

generally invited to the meetings.

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Supervisory Board committees (continued)

Audit Committee meetings in 2025

The Audit Committee meets at least four times a year

and always before the publication of the quarterly, half-

year and annual financial results. In 2025, the Audit

Committee held nine meetings.

Financials

In 2025, the Audit Committee focused, among other

matters, on financial reporting – most particularly the

review of ASML’s annual and interim reports, including

the annual and interim Financial statements and the

Sustainability statements. The Audit Committee also

closely monitored the progress and discussed the

outcomes of the year-end US GAAP and EU-IFRS

audits. The quarterly results and the accompanying

press releases were reviewed before publication.

On a quarterly basis, the Audit Committee was provided

with accounting updates by the Corporate Chief

Accountant, highlighting the main accounting matters

relevant for the quarter. A recurring item of focus of the

Audit Committee in this regard is revenue recognition,

as this is a complex accounting matter; identification of

distinct performance obligations in volume purchase

agreements has been identified as a critical audit matter

by the external auditor. Other important elements of the

Audit Committee’s quarterly procedures included the

discussion of the observations of the external auditor in

relation to the accounting matters, as well as the report

by the Disclosure Committee on the accuracy and

completeness of the quarterly disclosures. Throughout

the year, specific accounting topics were addressed in

depth. Semi- annual in-depth balance sheet reviews

were also performed.

The operational and financial short- and long-term

performance of ASML was discussed extensively,

looking at various performance scenarios and their

impact on ASML’s results and cash generation.

Particular attention was paid to the developments in

the semiconductor industry and those related to our

customers, and the impact on ASML’s cash generation.

Geopolitical challenges and in particular the potential

impact of increasing export control restrictions and tariffs

on ASML’s business was another topic of focus.

The Audit Committee reviewed and provided the

Supervisory Board with advice regarding the long-term

financial plan, the financing of ASML and ASML’s cash-

return policy. Topics specifically discussed included

the execution of the share buyback program and the

proposed final dividend payment in respect of the

2024 financial year and the interim dividends for the

financial year 2025, which were approved by the

Supervisory Board following recommendation by

the Audit Committee. Attention was also paid to free

cash flow, not only during the planned meetings but

also in dedicated deep-dive sessions.

Risk management and internal control

Throughout 2025, the Audit Committee closely

monitored risk management and the risk management

process, including the timely follow-up of high-priority

actions based on quarterly progress updates. Key focus

areas of the Audit Committee included those risks

showing an upward trend and merging risks. The Audit

Committee also reviewed the functioning of the Risk,

Business Assurance & Security function and provided

recommendations to enhance the risk reporting to the

Audit Committee and Supervisory Board. The Audit

Committee oversaw the annual internal control process,

with a focus on scoping, materiality levels, updates

to the internal control framework, the testing of design

and effectiveness, and management’s assessment of

ASML’s internal control over financial reporting and

disclosures. The observations made by Internal Audit

and the external auditor on the design and effectiveness

of internal controls were also discussed. The Audit

Committee discussed the newly introduced best practice

provision to include a risk management statement in the

statutory annual report and reviewed the text of ASML’s

risk management statement, related annual report

disclosures, and its substantiation.

Ethics, business integrity and compliance

We recognize that acting with the highest standards

of integrity is vitally important to value creation for

our stakeholders and the long-term success of ASML.

The Audit Committee received quarterly Legal &

Compliance reports, which also cover Ethics and

Business Integrity. During 2025, a dedicated deep

dive session on ASML’s regulatory compliance

program was held. This session was also attended

by non-Audit Committee members of the Supervisory

Board. An annual update on fraud and fraud risk

management was provided.

Internal audit

At the end of 2024 the Audit Committee approved

the annual Internal Audit plan 2025. During the year,

the Audit Committee was kept updated on the progress

of the internal audit activities on a quarterly basis, and

reviewed the results of audits performed and the status

of the follow-up on action plans. The Audit Committee

also discussed the internal management letter and

monitored follow-up by the Board of Management

on the recommendations.

In early 2025, the Audit Committee reviewed the internal

audit charters.

At the end of 2024, a new Head of Internal Audit

was appointed by the Board of Management, effective

February 1, 2025. Before making the appointment,

a positive recommendation from the Audit Committee

and approval of the Supervisory Board was obtained.

ASML_Supervisory-board-committees_(continued)_Bg1.jpg

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Supervisory Board committees (continued)

External audit

At the 2023 AGM, PricewaterhouseCoopers Accountants

N.V. (‘PwC’) was appointed as the external auditor for

the reporting year 2025. At the 2025 AGM, PwC was

appointed as the external auditor to perform a limited

assurance engagement and issue an assurance report

on the Sustainability statements for the reporting years

2025 and 2026.

In early 2025, the Audit Committee reviewed the 2025

external audit plan, including scoping, materiality level

and fees. Following a positive recommendation from

the Audit Committee, the Supervisory Board formally

approved the 2025 external audit plan. The Audit

Committee also approved the 2025 assurance plan

related to sustainability reporting.

Since 2025 was the first year in which PwC performed

the financial audit and the sustainability assurance, the

Audit Committee closely monitored the progress of the

audit and assurance work, including review of the

observations made throughout the year.

The Audit Committee also oversaw the activities of PwC

in the area of internal controls, which were discussed

during a periodic internal control update.

The Audit Committee evaluated the performance of the

external auditor in early 2026. This included a review of

its independence.

Sustainability reporting

The Audit Committee spent time discussing

sustainability reporting in view of compliance with

the ESRS. The Audit Committee also closely followed

developments related to sustainability reporting

requirements, including the EU Omnibus Regulation and

the Quick Fix Delegated Act.

ESG Committee meetings

ESG Committee
	The ESG Committee advises<br><br>the Supervisory Board in carrying<br><br>out its governance and oversight<br><br>responsibilities with regard to<br><br>sustainability, environmental,<br><br>social and governance matters.
	Members
	Birgit Conix (Chair)
ASML continues<br><br>to embrace ESG<br><br>responsibly and<br><br>pragmatically,<br><br>safeguarding<br><br>compliance with<br><br>evolving regulations.”	Alexander Everke
	An Steegen
	Karien van Gennip
	The ESG Committee may be supported by external<br><br>experts as well as those from within ASML, who act<br><br>as advisers on the subjects reviewed and discussed.
Birgit Conix
Chair of the ESG Committee

The ESG Committee meets at least twice a year

and more frequently when deemed necessary.

Main responsibilities

Assisting and advising the Supervisory Board in relation

to its governance and oversight responsibilities related to:

•The ESG sustainability strategy, including the various

sub-themes of the ESG sustainability strategy and the

associated double materiality assessment.

•The integration of ESG in the company and the ESG

sustainability strategy.

•The periodic assessment and evaluation of ASML’s

ESG sustainability performance and progress against

its objectives.

•The relationships as related to ESG matters and

engagement with ASML’s stakeholders.

•The (impact of) external ESG matters and developments

relevant for ASML, and the general evolution of the

ESG landscape.

Recurring agenda topics

•ESG strategy and performance

•ESG governance

•ESG compliance

Attendance

In addition to the ESG Committee members, the CEO,

the CFO and the Head of ESG Sustainability have a

standing invitation to attend ESG Committee meetings.

Internal experts and external advisers may also be invited

to attend when deemed necessary. Advisers do not have

voting rights.

ESG Committee meetings in 2025

In 2025, the ESG Committee held three meetings.

Each meeting covered updates on the latest

developments in the area of ESG and feedback from

the relevant ESG benchmarks. Furthermore, the

performance on the ESG KPIs and ESG-related

targets in the long-term incentive (LTI) of the Board

of Management and ASML’s senior management

were discussed. Finally, ESG compliance remains

a key focus area for every meeting.

In each of the ESG Committee meetings, a deep

dive review was performed of one of the topics included

in ASML’s ESG sustainability strategy. One of the deep

dive sessions centered around collaboration in the

semiconductor industry. It covered why collaboration

is needed on ESG sustainability and reviewed current

initiatives, including the Semiconductor Climate

Consortium and its 2025 priorities. Another deep dive

review was performed on supply chain emissions in light

of ASML’s ambition to become greenhouse gas neutral in

the supply chain by 2030. Finally, a deep dive review was

performed on I&D. In this deep dive the ESG Committee

was updated on the progress of the three-year I&D

program that started in 2024. The deep dive further

touched on key focus areas and steps toward the

further execution of the I&D strategy.

ASML_Corp=Gov_Super-Bopard-Rep_Super-Board-Committees-(Cont)_v1.jpg

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Supervisory Board committees (continued)

Supervisory activities in the area of ESG sustainability

The overview on this page shows how the oversight of

ESG matters by the Supervisory Board has been divided

between the Supervisory Board and its sub-committees.

The ESG Committee’s in-depth discussions on ESG and

the subsequent reporting of the main points of these

discussions to the full Supervisory Board are seen as

very valuable, as they further strengthen the Supervisory

Board’s oversight over ESG matters.

Supervisory activities in the area of ESG sustainability
		Supervisory Board<br><br>Oversight of overall company strategy aimed at sustainable long-term<br><br>value creation and company performance, including ESG aspects
	Audit<br><br>Committee	ESG<br><br>Committee	Remuneration<br><br>Committee	Selection<br><br>and Nomination<br><br>Committee	Technology<br><br>Committee
	Non-financial<br><br>reporting, ESG internal<br><br>controls and assurance	Oversight of ESG<br><br>strategy (execution)<br><br>and performance	ESG metrics as<br><br>part of executive<br><br>remuneration	Corporate<br><br>governance leadership<br><br>development<br><br>and succession<br><br>including diversity	Product and<br><br>technology roadmap-<br><br>related ESG matters/<br><br>programs (e.g. EUV<br><br>energy efficiency)
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Supervisory Board committees (continued)

Main responsibilities

Selection and Nomination Committee
	The Selection and Nomination<br><br>Committee assists the<br><br>Supervisory Board in relation<br><br>to its responsibilities regarding<br><br>the composition and functioning<br><br>of the Supervisory Board and<br><br>the Board of Management, and<br><br>the monitoring of corporate<br><br>governance developments.
	Members
	Nils Andersen (Chair)
This year we<br><br>prioritized leadership<br><br>continuity and an<br><br>enhanced board<br><br>composition by<br><br>adding Marco Pieters<br><br>as CTO, with his<br><br>intended appointment<br><br>to the Board of<br><br>Management in 2026.”	Warren East
	Mark Durcan
	Terri Kelly
	Each member is an independent member of our<br><br>Supervisory Board, in accordance with the Nasdaq<br><br>Listing Rules.
Nils Andersen
Chair of the Selection and Nomination Committee

Advising the Supervisory Board in relation to:

•Preparing the selection criteria and appointment

procedures for members of the Supervisory Board and

Board of Management, and the supervision of the Board

of Management’s policy in relation to the selection and

appointment criteria for senior management.

•Periodically evaluating the scope and composition of

the Board of Management and the Supervisory Board,

and proposing the profile of the Supervisory Board.

•Periodically evaluating the functioning of the Board

of Management and the Supervisory Board, and their

individual members.

•Preparing the Supervisory Board’s decisions for

appointing and reappointing members of the Board

of Management and proposing (re)appointments of

members of the Supervisory Board.

•Drawing up a plan for the succession of the members of

the Board of Management and the Supervisory Board.

•Monitoring and discussing developments in

corporate governance.

Selection and Nomination Committee meetings

in 2025

The Selection and Nomination Committee meets at

least once a year and more frequently when deemed

necessary. In 2025, the Committee held four meetings.

Recurring agenda topics

•Role, composition and functioning of the

Board of Management

•Role, composition and functioning of the

Supervisory Board

•Corporate governance

Attendance

In addition to its members, the CEO and the EVP HR&O

are regularly invited to attend (parts of) its meetings. An

external adviser is also invited to attend the meetings

when deemed necessary.

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Supervisory Board committees (continued)

Composition, role and responsibilities of the Board

of Management

In 2025, the Selection and Nomination Committee

focused on ASML’s governance, its functioning and

the composition of the Board of Management. Per the

2026 AGM, the terms of the positions of the CFO and

COO would come to an end. After careful considerations

on the approach, timing and composition, the Selection

and Nomination Committee acknowledged it to be in

ASML’s best interests to re-appoint Roger Dassen for a

new four-year term and to re-appoint Frédéric Schneider-

Maunoury for a two-year term. In addition, after thorough

deliberations with the Board of Management, there was

a desire to appoint a new CTO to enhance the Board

of Management profile, optimizing the roles and

responsibilities. Technology plays a vital role within ASML

and its future and adding such function to the Board of

Management is important for our continued focus driving

technology forward. Marco Pieters has been appointed

as ASML CTO by the Board of Management and the

Supervisory Board intends to appoint CTO Marco Pieters

to the Board of Management at the 2026 AGM. The

Selection and Nomination Committee furthermore

devoted significant time to evaluate the leadership

structure implemented in the previous year and can

conclude that the process has been successful. As the

Selection and Nomination Committee, we are confident

that ASML will continue to lead the global lithography

market. The current and envisaged Board of

Management is well positioned to sharpen our

responsiveness to customer needs and to consistently

deliver high‑performance products and services.

The Supervisory Board also regularly discussed

succession planning with respect to the Board of

Management, safeguarding ASML’s leadership for

the future.

Composition, role and responsibilities of the

Supervisory Board

This year, the Selection and Nomination Committee

spent a time discussing the Supervisory Board’s

composition, profile and rotation schedule, particularly

the appointment and reappointment of Supervisory

Board members to fill vacancies both in the short and

longer term. The Supervisory Board profile, as last

amended in 2024, was assessed during the evaluation of

the Supervisory Board.

In early 2025, the Selection and Nomination Committee

advised the Supervisory Board on the nominations for the

appointment of Karien van Gennip and reappointment of

Birgit Conix. Birgit Conix was reappointed by the General

Meeting for a consecutive term, in line with the nomination

made by the Supervisory Board. Annet Aris' term ended per

the date of the 2025 AGM.

The Selection and Nomination Committee also

discussed changes to the composition of the Supervisory

Board effective per the 2026 AGM. Per this date, the

terms of Terri Kelly, Alexander Everke and An Steegen

will expire. The agenda and explanatory notes for the

2026 AGM will contain further information about the

nominations for the (re)appointment of candidates for the

Supervisory Board.

Changes to Supervisory Board committees in 2025

The Selection and Nomination Committee also discussed

the composition of the Supervisory Board committees.

As per the 2025 AGM, several changes were made due

to the retirement of Annet Aris and the appointment of

Karien van Gennip.

Composition and skills

Annual evaluation

Furthermore, the Selection and Nomination Committee

spent a considerable amount of time preparing the

2025 self-evaluation of the Supervisory Board. The self-

evaluation was performed in Q4 and the results were

subsequently discussed with the Supervisory Board.

More information about the evaluation process and

outcome can be found in the dedicated section on

evaluation in this Supervisory Board report.

report – Evaluation

Corporate governance

As part of its responsibility to monitor corporate

governance developments, the Selection and

Nomination Committee discussed developments

in the area of corporate governance in general,

including the developments related to the Dutch

Corporate Governance Code, the corporate governance

aspects of (emerging) legal requirements related to

ESG, and matters of interest to investors and

shareholder organizations. The implementation of the

Risk Management Statement, as required by the

revised 2025 Corporate Governance Code, was

primarily addressed and discussed in the Audit

Committee.

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Supervisory Board committees (continued)

Technology Committee meetings in 2025

Technology Committee
	The Technology Committee<br><br>advises the Supervisory Board<br><br>with respect to the technology<br><br>plans required to execute<br><br>our business strategy.
	Members
	Mark Durcan (Chair)
In Q4 2025,<br><br>the Technology<br><br>Committee visited<br><br>ASML's facility in<br><br>San Diego, US.”	Warren East
	An Steegen
	The Technology Committee is supported by external<br><br>experts and those from within ASML, who act as<br><br>advisers on the subjects reviewed and discussed.<br><br>External experts may include representatives of<br><br>customers, suppliers and partners – increasing the<br><br>Committee’s understanding of the technology and<br><br>research required to develop our leading-edge systems.
Mark Durcan
Chair of the Technology Committee

In general, the Technology Committee meets at

least twice a year and more frequently when deemed

necessary. In 2025, the Technology Committee held

five meetings.

Main responsibilities

Assisting and advising the Supervisory Board in relation to:

•Advising on technology trends, the study of

potential alternative strategies, the technology

strategy, product roadmaps, required technical

resources and operational performance in research

and development (R&D).

•Making recommendations to the Supervisory Board

on technology-related projects with respect to ASML’s

competitive position.

•Discussing the technology targets set to measure

short- and long-term performance and related

achievements, and advising the Remuneration

Committee on this topic.

Recurring agenda topics

•Status of individual technology targets

•Setting mid- and long-term technology-related targets

•Technical strategy review of the business

Attendance

In addition to the Technology Committee members,

the Committee’s external and internal advisers regularly

attended its meetings. Advisers do not have voting rights.

Review of technology programs

As in previous years, the Technology Committee’s

primary focus in 2025 was on the review of the execution

and implementation of technology programs and

roadmaps in EUV 0.55 NA, EUV 0.33 NA, DUV, metrology

and inspection systems, and computational lithography.

In this respect, the key challenges and opportunities,

from a business perspective as well as from a technology

standpoint, were reviewed and discussed in depth.

During each meeting the Technology Committee

also discussed the progress made on the technology

targets included in the Technology Leadership Index,

a performance measure for the short-term and long-term

variable remuneration of the Board of Management. At

the beginning of the year, in a meeting especially planned

for this purpose, the Technology Committee discussed

the final achievements on the technology targets. In the

same meeting, new technology targets were set for the

new performance period. The Technology Committee

subsequently provided advice to the Remuneration

Committee and the Supervisory Board.

The meeting in Q1 was dedicated to the achievements

within metrology and inspection systems, and

computational lithography. The Technology Committee

was presented with a recap of the achievements in

2024, the strategic priorities, the execution challenges,

the competitive landscape and the opportunities in that

respect – and the growth projection toward 2030, looking

at the strategic focus areas within the metrology and

inspection systems, and computational lithography

landscape. In addition, updates were provided on

computational lithography, optical metrology and e-beam

metrology, and how the holistic lithography approach

can further improve performance for our customers.

In Q2, the main focus of the meeting was on the

Development & Engineering domain of ASML, including

its Research and System Engineering departments.

The Technology Committee was informed on how

these departments play a pivotal role in the innovation

process and how they work together on technological

developments within ASML. Furthermore, the departments

provided an in-depth view on their portfolio and internal

organization structure. Also, the Corporate Intellectual

Property department provided an insight into value

models and strategy principles.

ASML_Corp-govern_Super-board_Super-board-comittees_Image-v4.jpg

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Supervisory Board committees (continued)

Spotlight: Visit to San Diego – US
Q&A with Patrick O’Keeffe
CEO Cymer
Q:	What was your key objective for<br><br>the Technology Committee visit?
Patrick O’Keeffe: Together, we set out to show the<br><br>Technology Committee what we do in San Diego, the<br><br>lithography light source center of excellence for ASML<br><br>and how it all came about.
Q:	What topics did you discuss with the<br><br>Technology Committee?
Patrick O’Keeffe: We shared an overview of our<br><br>people, products, and programs; updated the<br><br>Technology Committee on the business, and<br><br>explained how Cymer operates independently from<br><br>ASML yet remains closely connected in our work.
Q:	What stands out to you when you look<br><br>back on the visit?
Patrick O’Keeffe: It was very valuable to interact with<br><br>the Technology Committee during their visit to ASML’s<br><br>San Diego site and to exchange perspectives on the<br><br>important work that we are doing and on how Cymer<br><br>contributes to ASML’s overall technology and<br><br>manufacturing network.

The Q3 meeting was fully dedicated to the DUV business.

Special attention was paid to the overall strategy, market

developments and positioning and the technology

roadmap – with special attention paid to the

customer’s perspective.

In Q4, the Technology Committee visited ASML’s

facility in San Diego, US. During this two-day meeting,

the Technology Committee primarily focused on the

achievements and challenges in ASML’s EUV 0.55 NA

and EUV 0.33 NA segments, as well as on the contributions

of the site in San Diego to ASML’s overall technology and

manufacturing network. On the first day, the Technology

Committee was led through the product roadmaps for

both EUV 0.55 NA and EUV 0.33 NA, the related

programs focusing on the cost of technology, and the

achievements on overall productivity. The second day

of the visit to San Diego was focused on providing insight

on the history of the site and the special position

Cymer holds in the ASML ecosystem. Furthermore,

the developments and achievements of the San Diego

site in both DUV and EUV technology were discussed –

and the Technology Committee was provided with a

tour through the cleanroom at the San Diego facility.

The Technology Committee’s in-depth technology

discussions and the subsequent reporting of the main

points to the full Supervisory Board increases the

Supervisory Board’s understanding of our technology

requirements. It also enables the Supervisory Board to

adequately supervise the strategic choices we face,

including our investment in R&D.

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Financial statements and profit allocation

The Financial statements of ASML for the financial year

2025, as prepared by the Board of Management, have

been audited by PwC. The auditor’s report can be found

in the section Financial statements. All members of the

Board of Management and the Supervisory Board have

signed the 2025 Financial statements.

We recommend that our shareholders adopt the Board

of Management’s proposal to make a final dividend

payment of €2.70 per ordinary share. Together with the

interim dividends paid in respect of the 2025 financial

year, which add up to €4.80 per ordinary share, this

leads to a total dividend of €7.50 per ordinary share

for the year 2025.

Finally, we would like to extend a word of thanks to

the Board of Management and all ASML employees

for their continued commitment and hard work during

this dynamic year.

The Supervisory Board:

Nils Andersen, Chair

Terri Kelly, Vice Chair

Birgit Conix

Mark Durcan

Warren East

Alexander Everke

Karien van Gennip

Jack de Kreij

An Steegen

Veldhoven, February 25, 2026

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In conversation with Terri Kelly

Chair of the Remuneration Committee

Chair of the Remuneration

Committee, Terri Kelly, outlines

the work carried out in the past

year to ensure that the company’s

remuneration policies continue

to be competitive and aligned

with strategy, while taking into

consideration the views

of stakeholders.

Q	What were the main<br><br>achievements of the<br><br>Remuneration Committee<br><br>in 2025?

Our most significant workstream was finalizing

the update of the Board of Management

Remuneration Policy. Besides several

updates, we further enhanced both the

short- (STI) and long-term (LTI) incentives,

and it was gratifying to see these gain

shareholders’ approval at the 2025 AGM.

The new policy enables us to select

performance measures that are even more

closely aligned with our strategy. For

example, ASML has further sharpened its

focus on customer orientation, and in

addition, we now also use strategic

orientation performance measures linked to

our key business priorities. This enables a

strong linkage between our performance

measures and effective execution as to our

customers need, how well we are meeting

those needs, and how we can do even

better. Another example is the decision to

consider operational priorities – enterprise

resource planning (ERP) implementation,

supply chain enhancements, productivity and

so on – in the STI, leaving the Technology

Leadership Index, with its long-term

perspective, more focused on the LTI.

In addition, we diligently reviewed the

fee structure for the Supervisory Board.

Looking at our AEX peers as a primary

reference point, we decided that there was

a need to increase fees for the Supervisory

Board. This change is well-aligned with our

policy and will help make sure we are able

to attract and retain talented Supervisory

Board members – it also acknowledges the

increased level of complexity and time

commitment in supervising the (execution

of the) strategy and the performance of

ASML, while at the same time taking into

consideration the societal context.

Q	Could you reflect on the<br><br>outcomes for the STI and<br><br>LTI this year?

The business has performed well and this

is reflected in the payouts for both incentive

plans. For the STI, performance was between

target and stretch for Customer Orientation

and Strategic Orientation and beyond

stretch for EBIT Margin %, resulting in an

overall pay-out of 142.5% of target. For

the LTI 2023–2025 series, ASML exceeded

target on all performance measures –

Relative Total Shareholder Return (rTSR),

Cash Conversion Rate, Technology

Leadership Index and ESG. The overall

LTI result is a vesting of 137.4% of target.

A key challenge

is to balance

external

competitiveness

with internal and

societal fairness.”

Terri Kelly

Chair of the Remuneration Committee

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In conversation with Terri Kelly (continued)

Chair of the Remuneration Committee

Q	How did you engage with<br><br>stakeholders while developing<br><br>the new policy for the Board<br><br>of Management?

A key aspect of our work in the months

leading up to the AGM involved extensive

outreach to ASML’s stakeholders. As

executive remuneration is a sensitive

topic, particularly locally, we engaged

with policy advisers, the Works Council,

various shareholders and shareholder

interest organizations to explain the proposed

changes and our rationale behind them,

and to obtain stakeholder input.

The entire stakeholder engagement process

was enormously helpful and led to a number

of changes to our initial proposals. This

helped build mutual respect and goodwill

because it underlined our commitment to

listen and to take on board the views

of stakeholders.

Of course, seeking the views of stakeholders

is not only important when we’re working

through a policy update. We maintain

regular and ongoing dialogue to better

understand questions and potential

concerns as they arise and fine-tune our

performance measures accordingly.

Q	What role does the<br><br>Remuneration Committee<br><br>play in attracting and retaining<br><br>the right talent on the Board<br><br>of Management?

One of the key challenges for the

Remuneration Committee is to balance

external competitiveness with internal and

societal fairness. Only taking input from our

global peer group could lead to a much more

financially aggressive approach, particularly

regarding the LTI. Our aim is to provide a

remuneration package that is competitive in

the relevant labor market, while at the same

time being aware of societal trends and

perceptions. It’s a tough but vital balance to

strike – we do not want to contribute to the

escalation that can happen when everyone

takes part in a race to the top.

Board of Management members also

acknowledge this sensitivity, and the

need to take into account societal trends

and perceptions as we establish our

pay practices. While we strive to be as

competitive as possible, we also recognize

that remuneration is not the only factor that

attracts and retains talent at ASML. The

chance to make a real difference to the

world of innovation and impact to society

as a whole is also a relevant element.

Q	How is remuneration of<br><br>the Board of Management<br><br>linked to pay for the broader<br><br>ASML workforce?

It is important to understand that although

our Remuneration Policy only directly

impacts a small group, there is alignment

between the performance measures and

target levels set for the Board of Management

and the broader ASML workforce.

We also look at the pay progression across

the broader organization to ensure there is

fairness and alignment in our pay practices.

In this way, there is consistency as people

move through the levels from senior

management to the Board of Management

and a steady progression. So although our

main role is to look at matters at the top

executive level, our engagement with the

Works Council has included discussions on

pay grades below the Board of Management

and how these align with the Board

of Management.

Q	What were the key findings of<br><br>the societal benchmark that<br><br>was recently carried out?

Working in close collaboration with the

Works Council, the Remuneration Committee

recently performed an updated societal

benchmark analysis. This serves as additional

consideration in assessing societal support

regarding the remuneration policies.

We updated the list of benchmark organizations,

but given the disparate types of institutions

and the nature of the work, it is only useful to

look at the relative pay progression across

the group. The outcome of the 2025 study

was that the Board of Management’s and

Supervisory Board’s pay progression positions

within the range of the societal benchmark

group, while the pay progression of the lowest

and average pay grades exceeded the higher

end of the range.

Q	How did you deal with<br><br>the inclusion and diversity<br><br>performance measures<br><br>following the issuance of the<br><br>US Executive Order, given the<br><br>differences between the US<br><br>and Europe?

At ASML, we remain fully committed to

fostering inclusion and diversity throughout

our organization. In order to comply with

legal requirements in various regions,

particularly in the US where there are

restrictions affecting US federal contractors,

we have made certain adjustments to our

performance measures. Importantly, in the

Netherlands, we are legally required to set

specific gender diversity targets for the Board

of Management and senior leadership.

Q	Could you reflect on the<br><br>change to the Committee’s<br><br>composition in 2025?

With Annet Aris stepping down at the

2025 AGM, we lost a long-term and

knowledgeable contributor. Through two

terms on the Committee, Annet was a key

contributor to our work and I would like to

thank her for her skills and enthusiasm.

We were very pleased with the appointment

of Karien van Gennip as Annet’s successor.

In the months since her appointment at the

AGM, Karien has brought great expertise to

our processes, together with an understanding

of the social context at a local level.

Q	Looking ahead, what is the<br><br>focus for 2026?

The next 12 months will be a time when we

will concentrate on getting the most out of

the current policies. As always, we will be

keen to challenge ourselves and make sure

that we have incentives in place that make the

most sense, that drive the right behaviors and

deliver performance. Hereby, taking account

alignment with our strategy, external

developments and supporting sustainable

long-term value creation.

Finally, close collaboration with the Board

of Management has long been a hallmark of

how we operate – and I look forward to this

continuing in the months and years ahead.

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---	---	---

Board of Management remuneration at a glance

Remuneration is one of the key tools to motivate the right talent to continue

to achieve our technology roadmap and business priorities

Our remuneration principles for performance support long-term success and sustainable value
Competitiveness	Our remuneration structure and levels intend to be competitive<br><br>in the relevant labor market, while at the same time taking into<br><br>account societal trends and perceptions.
Alignment	Our Remuneration Policy is aligned with the short-term and long-<br><br>term incentive policies for ASML senior management and other<br><br>ASML employees and takes into account internal relativities.
Long-term orientation	Our Remuneration Policy and incentives focus on sustainable<br><br>and long-term value creation.
Compliance	Our Remuneration Policy is intended to comply with the principles<br><br>of good corporate governance.
Simplicity and<br><br>transparency	Our Remuneration Policy and its execution are as simple as<br><br>possible and easily understandable to all stakeholders.		Linking remuneration to purpose and strategy
---	---	---	---	---
Purpose	Strategy		Incentive<br><br>measures	Pay for<br><br>performance
Unlocking<br><br>the potential<br><br>of people<br><br>and society<br><br>by pushing<br><br>technology<br><br>to new limits		Deepen<br><br>customer trust	Strategic orientation	Remuneration<br><br>outcomes
		Extend our<br><br>technology and<br><br>holistic product<br><br>leadership
			Financial measures
		Strengthen<br><br>ecosystem<br><br>relationships
			Customer orientation
		Create an<br><br>exceptional<br><br>workplace
			Technology leadership
		Drive operational<br><br>excellence
			ESG measures
		Deliver on ESG<br><br>sustainability			How we performed in 2025
---	---	---	---
Financial (based on US GAAP)			Non-financial
€32.7bn	€17.3bn	€11.3bn	8.4
Total sales<br><br>(2024: €28.3bn)	Gross profit<br><br>(2024: €14.5bn)	Income from operations<br><br>(2024: €9.0bn)	Technology Leadership<br><br>Index score<br><br>(2024: 8.0)
€12.7bn	€24.73	€13.3bn	78.9%
Net cash provided by<br><br>operating activities<br><br>(2024: €11.2bn)	Earnings<br><br>per share<br><br>(2024: €19.25)	Cash and cash<br><br>equivalents and short-<br><br>term investments at<br><br>year end<br><br>(2024: €12.7bn)	Employee engagement<br><br>score (three-year rolling<br><br>average)<br><br>(2024: 78.9%)

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---	---	---

Remuneration at a glance (continued)

We aim to align the total<br><br>remuneration for our Board of<br><br>Management to our business<br><br>strategy through a combination<br><br>of fixed pay and short- and long-<br><br>term incentives, underpinned<br><br>by stretching targets.
	€24.3m
	Total remuneration
	142.5%
	STI pay-out (% of target)
	137.4%
	LTI pay-out (% of target)
	46:1
	CEO vs. average per FTE		Total remuneration 2025 (€’000s)
---
Christophe D. Fouquet
7,021
Frédéric J.M. Schneider-Maunoury
4,366
Roger J.M. Dassen
4,350
Wayne R. Allan
4,463
James (Jim) P. Koonmen
4,083		Remuneration summary (€’000s)
---

| Base salary | Pension and other benefits | STI | LTI | | --- | --- | --- | --- || Stakeholder engagement in 2025 | | | --- | --- | | During 2025, we consulted with our large shareholders and other stakeholders, as well as with our Board of Management. Engagements took mainly place prior to the 2025 AGM. | | | Shareholders | | | Number of organizations met | 9 | | Number of meetings | 12 | | Percentage of issued share capital owned1 | 20.5% | | Shareholders representatives and proxy advisers | | | Number of organizations met | 3 | | Number of meetings | 6 | | Works Council | | | Number of organizations met | 1 | | Number of meetings | >5 |

1.Average based on the issued share capital and share positions

at the time of the AGM record date, March 26, 2025.

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Remuneration Committee

Main responsibilities

Remuneration Committee
	The Remuneration Committee<br><br>advises the Supervisory Board<br><br>and prepares the Supervisory<br><br>Board’s resolutions with respect<br><br>to the remuneration of the<br><br>Board of Management and<br><br>the Supervisory Board.
	Members
	Terri Kelly (Chair)
The updated policy<br><br>further enables the<br><br>Committee to select<br><br>performance<br><br>measures to drive<br><br>sustainable long-term<br><br>value creation.”	Karien van Gennip
	Alexander Everke
	Jack de Kreij
	Each member is an independent, non-executive member<br><br>of our Supervisory Board in accordance with the<br><br>Rules of procedure of the Remuneration Committee.<br><br>Ms. Kelly is neither a former member of our Board of<br><br>Management, nor a member of the management board<br><br>of another listed company. Currently, no member of<br><br>the Remuneration Committee is a member of the<br><br>management board of another Dutch listed company.
Terri Kelly
Chair of the Remuneration Committee

Advising the Supervisory Board in relation to:

•Overseeing the development and implementation

of the Remuneration Policy for the Board of

Management and preparing the Supervisory

Board Remuneration Policy.

•Reviewing and proposing to the Supervisory Board

corporate goals and objectives relevant to the variable

part of the Board of Management’s remuneration.

•Carrying out scenario analyses of the possible

financial outcomes on the variable remuneration

of meeting these goals, as well as exceeding these

goals, before proposing these corporate goals and

objectives to the Supervisory Board for approval.

•Evaluating the performance of the members of

the Board of Management in view of those goals

and objectives and – based on this evaluation –

recommending to the Supervisory Board appropriate

compensation levels for the members of the Board

of Management.

•Staying apprised of external pay practices and the

effectiveness of our Remuneration Policy and

performance measures in attracting and retaining top

talent.

Recurring agenda topics

•Remuneration of the Board of Management

•Remuneration of the Supervisory Board

•Setting performance measures and targets for short-

and long-term incentives and monitoring progress

•Monitoring market developments

Attendance

Alongside the Remuneration Committee members, the

Committee invites the EVP HR&O and the Vice President

Global Rewards to participate in its meetings, while the

CEO and CFO are asked to join as needed for specific

topics. The Remuneration Committee’s external adviser

is also invited to attend the Remuneration Committee

meetings when deemed necessary.

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Remuneration Committee (continued)

Remuneration of the Board of Management

In Q1 2025, the Remuneration Committee, supported

by an external advisor, finalized its extensive review of

the Remuneration Policy for the Board of Management.

Hereby, the Remuneration Committee’s challenge was to

balance external competitiveness with internal and

societal fairness. Prior to the submission of the proposed

Remuneration Policy to the General Meeting, the

Remuneration Committee engaged extensively with

various stakeholders to obtain their perspectives – this

included ASML’s shareholders, shareholder interest

organizations, proxy advisors and the Works Council. For

more information about the stakeholder feedback,

reference is made to the 2025 AGM page on our website.

On April 23, 2025, the Supervisory Board, upon

recommendation of the Remuneration Committee,

proposed to the General Meeting to amend the

Remuneration Policy of the Board of Management.

The new Remuneration Policy for the Board of

Management was adopted with 91.43% support at

the 2025 AGM. An overview of the 2025 Remuneration

Policy, including the implementation thereof in 2025,

can be found in this Remuneration Report.

Staying true to ASML’s commitment to fostering an

inclusive workplace where everyone can thrive while

respecting laws and regulations wherever we do business,

the Supervisory Board, upon advice from the Remuneration

Committee, following the US executive order 141731,

decided to modify the running LTI plans for the Board of

Management, in line with the modifications made for other

senior and executive management. For members of the

Board of Management outside the US, gender diversity

performance measures are calculated excluding US

employees. For the Board of Management member based

in the US, such performance measures are omitted and an

increased weighting is applied on the Employee

engagement and Inclusion score. For more information in

this regard, reference is made to the Board of Management

– LTI paragraph of this Remuneration Report.

The Remuneration Committee made recommendations to

the Supervisory Board concerning the total remuneration

package of the Board of Management. The Remuneration

Committee proposed 2025 targets for the Board of

Management’s variable remuneration to the Supervisory

Board. During the year, the Remuneration Committee

closely monitored the Board of Management’s performance,

providing recommendations to the Supervisory Board

regarding the achievement of the 2025 targets and related

compensation levels for the Board of Management members.

In proposing and evaluating the Board of Management’s

performance in relation to the corporate goals and

objectives for the variable remuneration of the Board of

Management members, the Remuneration Committee

closely cooperates with the Audit Committee, the ESG

Committee and the Technology Committee.

In line with the 2025 Remuneration Policy for the Board

of Management and following the Remuneration Committee’s

recommendation, the Supervisory Board approved a 4%

increase to base salaries for all Board of Management

members. The on-target levels for the STI 2026 for all

Board of Management members remain unchanged. For

the LTI 2026-2028, the on-target levels are increased to

300% for the President and CEO, 275% for the CFO and

250% for the other Board of Management members. The

CFO position has evolved beyond traditional finance

topics towards a broader strategic role. Hence, it was

decided to differentiate the on-target LTI level for this role

compared to other Board of Management members.

The Remuneration Committee has taken note of

the views of the individual members of the Board of

Management with regard to the amount and structure

of their remuneration.

The shareholding positions of the Board of Management

members were reviewed by the Remuneration Committee

in order to assess compliance with the updated share

ownership guideline as included in the Remuneration

Policy for the Board of Management.

The Remuneration Committee engaged the external auditor

to perform certain agreed-upon procedures regarding the

reported performance by the Board of Management on

the STI Plan 2025 and LTI Plan 2023-2025.

The Remuneration Committee also prepared the

Remuneration Report, which details the remuneration

of members of the Supervisory Board and the Board

of Management. Transparency around remuneration

continues to be a topic of focus for the Remuneration

Committee and in 2025 we made further efforts to improve

the transparency and readability of the Remuneration

Report. For example, we integrated the overview of the

2025 Remuneration Policy with the disclosure on how

we implemented the Remuneration Policy in 2025.

Remuneration of the Supervisory Board

Within the Supervisory Board Remuneration Policy

2023 framework, the Remuneration Committee

reviewed the Supervisory Board fee structure and

levels in accordance with the bi-annual benchmark

of the Supervisory Board remuneration. Following this

review, the Supervisory Board proposed to the 2025

AGM to increase base membership and committee

fees and remove the fixed-expense allowance. The

new Supervisory Board fee structure and levels were

adopted with 98.17% support at the 2025 AGM. An

overview of the Supervisory Board 2025 fee structure

and levels, can be found in this Remuneration Report.

Societal benchmark

In the context of the changes to the Board of

Management and Supervisory Board remuneration

policies in 2022 and 2023 respectively, the Works

Council raised the topic of societal support regarding

executive remuneration. To follow up on this topic, a

societal benchmark analysis was conducted in 2023 by

a delegation of the Remuneration Committee working in

close collaboration with the Works Council, supported

by the Remuneration Committee’s external adviser.

The outcome of the 2023 societal benchmark

(consisting of companies of social relevance in the

Netherlands and that have comparable and consistent

remuneration disclosure) was that, overall, ASML’s

relative pay progression is well aligned to the societal

benchmark group.

In 2025, following the changes to the Board of

Management’s and Supervisory Board’s remuneration

and in line with ASML’s intention to perform this

societal benchmark periodically going forward, to

serve as additional consideration in assessing societal

support, the Remuneration Committee – working in

close collaboration with the Works Council – performed

an updated societal benchmark analysis.

The outcome of the 2025 societal benchmark was that

the Board of Management’s and Supervisory Board’s

pay progression positions within the range of the societal

benchmark group, while the pay progression of ASML’s

lowest and average pay grades outpaced that of the

benchmark group.

titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, took effect on April 21, 2025. Our diversity targets and key performance indicators (KPIs) do not apply to ASML’s US operations or employees. In addition, certain programs and initiatives do not apply to ASML’s US

employees to the extent they would conflict with the EO or other applicable law, regulation or orders. The comparative data (including baselines figures) reported herein capture ASML’s employees worldwide.

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---	---	---

Board of Management remuneration

| In this section of the Remuneration report, we provide an overview of the Remuneration Policy for the Board of Management, which was adopted by the General Meeting on April 23, 2025 and has been applicable as of January 1, 2025. It also contains information about the high level implementation of the Policy for 2025. The full Policy can be found in the Governance section of our website. | | --- || Remuneration as a strategic instrument | | --- || Remuneration as a strategic instrument | | --- |

The Remuneration Policy supports the strategy,

long-term interests, and sustainability of the

Company – as well as ASML’s challenge to drive

technology, serve our customers and aim to satisfy

our stakeholders is core to the Remuneration Policy.

The Supervisory Board ensures that the Policy

and its implementation is aligned to our strategic

priorities. This is achieved through setting

performance measures and targets with respect

to variable remuneration that are linked to our

short-and long-term ambitions.

The Policy enables ASML to attract, motivate and

retain qualified (industry) professionals to define

and achieve our strategic goals. This is reflected

by determining a remuneration structure and

remuneration levels that intend to be competitive

in the relevant labor market, while at the same time

being aware of societal trends and perceptions.

Therefore, the Policy acknowledges the internal

and external context as well as our business needs

and sustainable long-term strategy, encouraging

behavior focused on sustainable long-term value

creation and the long-term interest and sustainability

of the Company – while intending to comply with

the principles of good corporate governance.

The Remuneration Committee engages

extensively with various stakeholders to obtain

their perspectives when formulating the various

elements of the Remuneration Policy.

These stakeholders include ASML’s shareholders,

shareholder interest organizations, proxy advisors

and the Works Council of ASML Netherlands B.V.

Reference group and market positioning

The Remuneration Policy is built on the

following principles:

Link to strategy / rationale

A remuneration package for the Board of Management

that is competitive compared to the relevant labor

market, with the aim to attract, retain and motivate

talent in all of its diverse markets.

2025 Policy

•A reference group is created to define

the relevant labor market and consists of

companies comparable to ASML in terms of size

and complexity, industry or business profile, data

transparency and geographical area, where

Competitiveness<br><br>The remuneration structure and levels intend<br><br>to be competitive in the relevant labor market<br><br>while taking into account societal trends<br><br>and perceptions	Alignment<br><br>The Remuneration Policy is aligned with the short-<br><br>term and long-term incentive policy for ASML<br><br>senior management and other ASML employees,<br><br>taking into account internal relativities
Long-term orientation<br><br>The Remuneration Policy focuses on<br><br>sustainable long-term value creation,<br><br>and incentives aligned accordingly	Compliance<br><br>The Remuneration Policy is intended to comply<br><br>with the principles of good corporate governance
Simplicity and transparency<br><br>The Remuneration Policy and its execution are<br><br>as simple as possible and easily understandable<br><br>to all stakeholders

members of the Board of Management could be

recruited to and from.

•The median market level may serve as a

reference in determining the level of remuneration

for the Board of Management

•A comprehensive market benchmark of the

Board of Management remuneration is typically

conducted every two years.

•To ensure the reference group remains

appropriate, the Supervisory Board reviews

the composition of the reference group prior

to each comprehensive market benchmark.

2025 Implementation
Reference group composition (as defined for 2025)
European companies with focus on<br><br>long-term technology / industrial<br><br>engineering / R&D	ABB<br><br>Airbus<br><br>Dassault Systèmes<br><br>Medtronic	Novartis<br><br>Philips<br><br>Roche<br><br>Safran	SAP<br><br>Siemens<br><br>Schneider Electric
Semiconductor manufacturing /<br><br>design companies	Broadcom<br><br>Intel<br><br>Micron Technology	Qualcomm<br><br>STMicroelectronics<br><br>Infineon Technologies	NXP Semiconductors
Semiconductor equipment	Applied Materials	KLA Corporation	Lam Research

The 2025 remuneration for all Board of Management members, positions below the median level of the

reference group.

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---	---	---

Board of Management remuneration (continued)

Key elements of the 2025 Remuneration Policy for the Board of Management

Short-term incentive (STI)

| Link to strategy / rationale | | --- || Base salary | Short-term incentive (STI) | Long-term incentive (LTI) | Retirement and other benefits | Total remuneration | | --- | --- | --- | --- | --- | | Total direct compensation (TDC) | | | | |

Ensure a balanced focus on both financial

and non-financial performance of ASML in

the short term, fueling long-term success.

2025 Policy

STI refers to the annual, performance-based

cash incentive.

The STI target level is set at a maximum of

150% of base salary.

Threshold performance will result in a pay-

out of 50% of STI target level. Maximum (or

higher) performance will result in a capped

pay-out of 150% of STI target level. Below

threshold performance, there is no pay-out.

227598906950723

STI performance measure<br><br>weighting

227598906950689

Base salary

| 20-40% | | --- || Link to strategy / rationale | 2025 Policy | 2025 Implementation | | --- | --- | --- | | Attract, motivate and retain qualified industry professionals for the Board of Management in order to define and achieve strategic goals. | The base salary constitutes the main fixed element of the remuneration package and is derived from, among others, the market benchmark as well as the aimed TDC positioning. Base salaries are reviewed annually by the Supervisory Board. | Increased with 4% compared to 2024, leading to the following base salaries for 2025: || 60-80% | | --- | | Base salaries 2025 | | --- | | CEO | | Other BoM member* | | *849,323 for J.P. Koonmen. We refer to the ‘Total remuneration Board of Management’ table in this regard. |

All values are in US Dollars.

	Weight
Financial measures	60-80%
Non-financial measures	20-40%		2025 Implementation
---		STI target levels
---

233096465101398

CEO
Other BoM<br><br>members		STI performance measure<br><br>weighting
---		40%
---		60%
---			Weight
---	---
Financial measures	60%
Non-financial measures	40%

A detailed breakdown of the STI 2025 pay-

out levels can be found in section ‘Short-

term incentive 2025’ of this report.

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Board of Management remuneration (continued)

Long-term incentive (LTI)

Link to strategy / rationale

Contribute to our long-term interests, using

performance measures which balance the

interest of our investors, the financial

success of ASML and the continuation of

technological advancement, while taking

into account the environmental, social and

governance aspects of the company.

2025 Policy

The LTI refers to a performance and share-based

incentive, based on which performance shares

are conditionally granted on an annual basis.

The LTI target level is set at a maximum of

350% of base salary (450% in business-critical

situations). Shares will become unconditional

depending on the achievement of predetermined

performance targets during a three-year period,

after which a two-year holding period applies.

Threshold performance will result in a vesting of

227598906951746

around 37.5% of LTI target level (depending on

applicable Relative TSR weighting). Maximum

(or higher) performance will result in a capped

vesting of 200% of LTI target level. Below

threshold performance, there is no vesting.

LTI performance measure<br><br>weighting

227598906951683

| 20-40% | | --- || 20-30% | | --- || 30-50% | | --- || | Weight | | --- | --- | | Relative TSR | 20-30% | | Financial strategic value drivers | 30-50% | | Non-financial measures | 20-40% |

The combination of Relative TSR and financial

strategic value drivers will not be less than

60% of the total weighting in any plan cycle.

| 2025 Implementation | | --- || LTI 2025-2027 target levels | | --- |

233096465095828

CEO
Other BoM<br><br>members		LTI 2025-2027 performance<br><br>measure weighting
---		25%
---		40%
---		35%
---		Relative TSR	25%
---	---
Financial strategic value drivers	35%
Non-financial measures	40%

A detailed breakdown of the LTI

2023-2025 vesting levels can be found

in section ‘Vesting under the LTI Plan

2023-2025’ of this report.

Performance driven scenarios

The following table represents the variable pay as a percentage of base salary for the Board of Management in case of maximum, on-target,

threshold and below-threshold performance:

		% Variable
2025 levels<br><br>for maximum<br><br>performance	P	89%
	M	86%
2025 levels<br><br>for on target<br><br>performance	P	81%
	M	77%
2025 levels<br><br>for threshold<br><br>performance	P	64%
	M	58%
Below<br><br>threshold<br><br>performance	P	00%
	M	00%

227598906950224

227598906950416

227598906950437

227598906950458

P = President and CEO		M = Other members
Base salary	STI	LTI

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Board of Management remuneration (continued)

Retirement and other benefits

Share ownership guidelines

Link to strategy / rationale	2025 Policy
Contribute to the competitiveness of the overall remuneration<br><br>package and create alignment with market practice.	The pension arrangements and other benefits are aimed at<br><br>reflecting local market practice and may evolve year-over-year.		Link to strategy / rationale	2025 Policy
---	---
Requirement for a minimum share ownership by members of the<br><br>Board of Management. Ensuring alignment between the interests of<br><br>the Board of Management members and our sustainable long-term<br><br>value creation.	•President and CEO: four times annual base salary<br><br>•Other Board of Management members: three times annual<br><br>base salary<br><br>•Five-year period to comply.		2025 Implementation
---
In 2025, with the exception of Jim Koonmen who participates in the US Employees’ Savings and Retirement Plan, all Board of Management<br><br>members participated in the pension arrangement for the Board of Management, based on the ‘excedent’ (supplementary) arrangement for<br><br>our employees in the Netherlands. It consists of a gross pension element (for the salary below approximately €138,000 minus the threshold)<br><br>and a net pension element (for the salary above approximately €138,000).<br><br>Expenses reimbursed by ASML in 2025 included company car costs, representation allowances, social security costs, health and disability<br><br>insurance costs and other benefits which reflect local market practice.
2025 Implementation
---	---	---	---
The table below show the share ownership guidelines, net number of shares and share ownership ratio of each Board of Management member as per December 31, 2025. All Board of Management members complied with the minimum ownership guidelines per year-end 2025.
Board of Management	2025 base<br><br>salary<br><br>(in € thousands)	Number of shares3	Ownership ratio1
C.D. Fouquet	1.125	7,040	5.77
F.J.M. Schneider-Maunoury	784	19,711	23.17
R.J.M. Dassen	784	6,643	7.81
W.R. Allan	784	4,239	4.98
J.P. Koonmen2	757	7,621	9.28
1.The Ownership ratio is calculated by multiplying the net number of shares with the share price of 921.40 (based on the Euronext Amsterdam closing share price of December 31, 2025) and dividing this by the 2025 base salary.2.James (Jim) P. Koonmen’s Long-Term Incentive (LTI) grants are vested in ASML NY shares (listed on the US Nasdaq). His ownership ratio, calculated based on his 2025 US dollar base salary of 849,323 and the ASML NY share price of 1,069.86 (based on the closing share price of December 31, 2025), is 9.60.3.Includes vested LTI shares and may include shares acquired outside of ASML’s share plans.

All values are in US Dollars.

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Board of Management remuneration (continued)

Remuneration of Board of Management in 2025

The remuneration of the Board of Management for the financial year 2025 is an implementation of and complies with

the 2025 Remuneration Policy for the Board of Management. As such, the remuneration of the Board of Management

in 2025 contributed to the objectives of the 2025 Remuneration Policy for the Board of Management and, as a result,

to our strategy aimed at sustainable long-term value creation. The Supervisory Board carried out a scenario analysis

when determining the structure, level and actual pay-outs of Board of Management remuneration for 2025, in

accordance with the Dutch Corporate Governance Code. For variable remuneration elements, the Supervisory Board

reviews performance measures, target-setting and pay-out levels to understand the possible outcomes on total

remuneration of the Board of Management and to ensure appropriate pay-for-performance relationships under

different economic scenarios and performance levels. The Supervisory Board believes the current remuneration

structure and outcomes are appropriate for 2025 and are aligned with company performance and shareholder

experience.

Remuneration of Board of Management in 2023.jpg

Annual plan<br><br>2025	Performance<br><br>metrics selected	EBIT %<br><br>Customer<br><br>Orientation<br><br>Strategic<br><br>Orientation	Performance<br><br>assessment<br><br>by SB

Base salary

The base salaries of the members of the Board of Management were set at the beginning of 2025. Implementing the

2025 Board of Management Remuneration Policy, 4% base salary increases were applied for the Board of Management in

For a detailed overview, reference is made to the section Total remuneration Board of Management.

Short-term incentive 2025

The financial and non-financial target levels for the STI were set at the beginning of the 2025 financial year in

accordance with the 2025 Remuneration Policy for the Board of Management and taking into account the annual

plan (forecast) for 2025.

For the STI, the Supervisory Board, taking into consideration our business challenges and circumstances in 2025,

decided to select a performance metric focused on profitability:

•EBIT Margin % (non-GAAP measure), measuring Income from operations as percentage of total net sales (based

on US GAAP).

In addition, the following non-financial performance metrics applied for the STI in 2025, in accordance with the 2025

Remuneration Policy for the Board of Management:

•Customer Orientation: This metric consisted of five sub-targets measuring ASML’s positioning in the market

and its performance in terms of customer experience, customer satisfaction and quality. The sub-targets were:

adoption of multibeam within Metrology & Inspection; DUV Cost and Competitiveness; EUV 0.33 NA maturity; EUV

0.55 NA insertion; and ASML’s Customer Trust Survey.

•Strategic Orientation: This metric consists of four sub-targets measuring the key business priorities that are critical

to achieving our strategic objectives. The sub-targets were: Enterprise Resource Planning; High Productivity

Platform; New Product Quality; and Global Supply Chain Development.

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Board of Management remuneration (continued)

After the end of the performance period, the Supervisory Board assessed the performance achieved against the

targets, in cooperation with the relevant sub-committees: the Technology Committee, Audit Committee, ESG

Committee and Remuneration Committee. The target and actual achievement levels for the STI performance

criteria are set out in the table below, excluding information which qualifies as commercially or strategically

sensitive. The Supervisory Board considers disclosure of this information not to be in the interest of ASML and

its stakeholders. In view of transparency, we report performance for these metrics as percentage of target.

Performance metric	Weight	Performance targets1			Actual<br><br>performance	Pay-out2<br><br>% of target
		Threshold	Target	Stretch
EBIT Margin (%) (Non-GAAP measure)	60%	28.0%	30.5%	33.0%	34.6%	150.0%
Customer Orientation	20%					113.1%
Consisting of the following weighted sub-targets:
Adoption of multibeam	2.5%	*				75.0%
DUV Cost and Competitiveness	2.5%	*				120.0%
EUV 0.33 NA maturity	2.5%	*				110.0%
EUV 0.55 NA insertion	2.5%	*				0.0%
ASML Customer Trust Survey	10%	*				150%
Strategic Orientation	20%					149.2%
Consisting of the following weighted sub-targets:
Enterprise Resource Planning	5%	*				150.0%
High Productivity Platform	5%	*				148.9%
New Product Quality	5%	*				147.9%
Global Supply Chain Development	5%	*				150.0%
Total	100%					142.5%

1.Certain performance targets (*) are not disclosed due to strategic or commercial sensitivity.

2.The pay-out % is based on the pay-out levels as included in the 2025 Remuneration Policy Board of Management.

The 2025 EBIT Margin % (Non-GAAP measure) of 34.6% is calculated as Income from operations of €11,301 million

divided by Total net sales of €32,667 million.

The achieved pay-out % for Customer Orientation amounts to 113.1%, which is an increase compared to last

year’s performance.

The achieved pay-out % for Strategic Orientation of 149.2% cannot be compared, since 2025 is the first year we

measure this performance metric.

The total STI outcome for the current Board of Management results in a cash pay-out of €7.3 million, representing a

pay-out as a percentage of target of 142.5%.

Short-Term Incentive 2026

For 2026, the Supervisory Board has decided to apply the following STI performance measures:

Performance metric	Weight
EBIT Margin (%) (Non-GAAP measure)	60%
Customer Orientation	20%
Consisting of the following weighted sub-targets:
Adoption of multibeam	2.5%
DUV Cost and Competitiveness	2.5%
EUV 0.33 NA maturity	2.5%
EUV 0.55 NA maturity	2.5%
ASML Customer Trust Survey	10%
Strategic Orientation	20%
Consisting of the following weighted sub-targets:
Enterprise Resource Planning	5%
Strategic Product Development and Cost of Technology	5%
New Product Quality	5%
Global Supply Chain Development	5%
Total	100%
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	125
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Board of Management remuneration (continued)

Board of Management Remuneration in 2025 – Long-term incentive

Conditionally granted LTI Plan 2025–2027 in 2025

At the beginning of 2025, approximately 30,481 performance shares were conditionally granted to the current

members of the Board of Management who were eligible to participate in the 2025–2027 LTI performance plan.

These conditional grants are based on the maximum-achievable opportunity.

Target-setting process
	Review company<br><br>strategy in line with<br><br>financial plan	Determine<br><br>business priorities<br><br>for upcoming<br><br>three-year<br><br>performance<br><br>period	Determine<br><br>LTI performance<br><br>measures for<br><br>three-year<br><br>performance<br><br>period	Finalize long-term<br><br>financial plan
	Step 1	Step 2	Step 3	Step 4

Target setting process.jpg

At the beginning of 2025, the Supervisory Board, in line with the recommendation of the Remuneration Committee,

selected the performance metrics to be used to measure ASML’s performance related to Relative Total Shareholder

Return (rTSR), Return on Average Invested Capital (ROAIC) (Non-GAAP measure), Technology Leadership Index (TLI)

and ESG performance metrics. The Supervisory Board also set the target levels related to all performance metrics for

the 2025–2027 LTI Plan, as listed below. This took into account the long-term product roadmap, ESG goals and long-

term financial plan, thereby ensuring alignment between the various targets and our long-term strategic priorities –

and encouraging behavior focused on sustainable long-term value creation.

For the 2025–2027 LTI Plan, the following performance metrics apply, in accordance with the 2025 Remuneration

Policy for the Board of Management:

•Relative TSR: ASML’s change in New York (NASDAQ) share price plus dividends paid, relative to the TSRs

of the other individual companies of the Philadelphia Semiconductor Index (PHLX Semiconductor Index, total

return index) over the relevant performance period.

•ROAIC: A non-GAAP measure based on a three-year average by dividing the income after income taxes (at

target R&D) by the average invested capital. Average invested capital is calculated by taking the average of

total assets minus cash and cash equivalents, short-term investments, total current liabilities and non-current

contract liabilities at the start and end of each quarter over three years. Mergers and acquisitions are to be

excluded from the evaluation period.

•Technology Leadership Index: As a qualitative metric for the LTI, the Technology Leadership Index consists of

targets to be achieved three years ahead, two years ahead and in the coming year. Each year, new targets are

defined for the period three years ahead. The targets for two years ahead are based on the prior-year targets

(that were three years ahead at that time) and a correction factor on the score (up or down) depending on

whether targets appeared to be easier or more difficult to achieve. The same approach is used for subsequent

years. The total score for the Technology Leadership Index over the three-year performance period is the average

of the scores over the three years, including the relevant correction factors applied on each year’s score.

•ESG: A measure consisting of three equally weighted sub-targets, both qualitative and quantitative: (1) gender

diversity (fueling a more diverse workforce composition, which is a key enabler to our continued success and

supports our overall objective of building a diverse talent pool in leadership roles), (2) engagement and inclusion

and (3) EUV energy use per wafer pass.

Taking into account the considerations as elaborated on under Remuneration Committee – Remuneration of

the Board of Management, and following US executive order 14173, the non-financial ESG performance metrics

were modified (compared to the LTI 2025-2027 performance measures as disclosed in the 2024 Remuneration

Report) as follows:

◦For the Board of Management member based in the US, the gender diversity performance measures are

omitted, and an increased weighting is applied on the Employee engagement and Inclusion score (13.33%)

◦For the Board of Management members outside the US, the gender diversity performance measures are

calculated excluding US employees.

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Board of Management remuneration (continued)

The target levels for the LTI performance metrics are set out in the table below:

Performance metric		Performance targets
	Weight	Threshold	Target	Stretch
Relative TSR	25%	As per Remuneration Policy
ROAIC (2025–2027)1 (Non-GAAP measure)	35%	35%	50%	65%
ESG Measures	20%
Consisting of equally weighted sub-metrics:
Gender diversity2:	6.7%
• % Inflow of women JG 9+ (external and<br><br>internal inflow)		23%	25%	27%
• % Representation of women in JG 13+		14%	15%	16%
Engagement and inclusion:	6.7%
• Employee engagement<br><br>(Relative benchmark target vs. top 25%<br><br>performing companies (3 year rolling))		—4p.p	—2p.p	0p.p
• Inclusion score<br><br>(Relative benchmark target vs. top 25%<br><br>performing companies (3 year rolling))		—4p.p	—2p.p	0p.p
EUV energy use per wafer pass (kWh per<br><br>wafer pass)	6.7%	5.0	4.7	4.5
Technology Leadership Index	20%	4	6	10
Total	100%					Vesting of shares process
---	---	---	---	---	---	---	---
		Grant<br><br>date	Vesting period<br><br>within three<br><br>years	Vesting<br><br>date		Holding period<br><br>two years	End of transfer<br><br>restrictions
	•In the period between the grant date<br><br>and the vesting date, performance shares<br><br>are conditional				•Performance shares are delivered to the<br><br>participant. However, transfer restrictions<br><br>apply: acquired performance shares cannot<br><br>be transferred during the holding period<br><br>•Participant is allowed to sell sufficient<br><br>performance shares to cover tax obligations

1.The ROAIC 2025–2027 (Non-GAAP measure) is based on a three-year (2025-2027) average by dividing the income after income taxes (at

target R&D) by the average invested capital. Average invested capital is calculated by taking the average of total assets minus cash and cash

equivalents, short-term investments, total current liabilities and non-current contract liabilities at the start and end of each quarter over three

years. Mergers and acquisitions will be excluded from the evaluation after the LTI period. We believe that ROAIC is a meaningful measure

because it quantifies our effectiveness in generating returns relative to the capital invested in our business over the past three years.

2.For members of the Board of Management outside the US, the gender diversity performance measures are calculated excluding US

employees. For the Board of Management member based in the US, the gender diversity performance measures are omitted, and an increased

weighting is applied on the Employee engagement and Inclusion score.

Modification LTI plans 2023-2025 and 2024-2026 following US executive order 14173

For the Board of Management member based in the US and regarding the LTI 2024-2026, the gender diversity

performance measures are omitted, and an increased weighting is applied on Employee engagement.

For the Board of Management members outside the US and regarding LTI 2023-2025 and LTI 2024-2026,

the gender diversity performance measures are calculated excluding US employees.

Vesting under the LTI Plan 2023–2025

Following the end of the three-year performance period 2023–2025, the Supervisory Board assessed the performance

achieved against the LTI targets, in cooperation with the Technology Committee, Audit Committee, ESG Committee

and Remuneration Committee. The performance metrics that applied to the LTI 2023–2025 Plan were Relative TSR,

Normalized Cash Conversion Rate percentage (Non-GAAP measure) (as strategic value driver), Technology

Leadership Index and ESG, in accordance with the 2022 Remuneration Policy for the Board of Management.

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Board of Management remuneration (continued)

The target and actual achievement levels for the LTI performance criteria based on the policy are set out in the

table below:

		Performance targets			Actual<br><br>performance	Pay-out %2<br><br>% of target
Performance metric	Weight	Threshold	Target	Stretch
Relative TSR	30%	115.9%	202.8%	365.4%	203.9%	100.7%
Normalized three-year average cash<br><br>conversion rate %1 (Non-GAAP measure)	30%	85.0%	90.0%	95.0%	92.0%	140.9%
Technology Leadership Index	20%	4	6	10	8.4	160.1%
ESG Measures	20%					164.3%
Consisting of the following sub-measures:
Net zero emission (scope 1+2) with<br><br>minimum compensation	6.7%	<37kt<br><br>compensation	<30kt<br><br>compensation	<20kt<br><br>compensation	19.4	200.0%
Employee engagement<br><br>(Relative benchmark target vs. top 25%<br><br>performing companies (3 year rolling))	6.7%	-4%	-2%	0%	-2.3%	93.0%
Total and JG9+ female inflow 3	6.7%	22%	24%	26%	28.8%	200.0%
Total	100%					137.4%	4

1.The Normalized three-year average Cash Conversion Rate % (CCR) (Non-GAAP measure) is calculated by dividing Normalized Free Cash

Flow (Non-GAAP measure) by Net Income (three-year average). Free Cash Flow (Non-GAAP measure) is normalized by excluding early

payments received in a certain financial year from customers without a contractual payment obligation in that financial year.

2.The pay-out percentage is based on the pay-out levels as included in the 2022 Remuneration Policy of the Board of Management.

3.For the Board of Management members outside the US, the gender diversity performance metric is calculated excluding US employees. No

LTI Plan 2023-2025 has been granted for the US based Board of Management member in his capacity as such.

4.Total actual performance score of 137.4% is based on weighting of individual performance metrics multiplied by the pay-out percentage.

The total LTI outcome results in a share vesting of 137.4% of target.

Long-Term Incentive Plan 2026–2028

In 2026, the Supervisory Board intends to grant approximately 30,909 performance shares to the current members of

the Board of Management for the 2026–2028 LTI performance plan. These conditional grants are based on the

maximum-achievable opportunity for 2026 under the 2025 Remuneration Policy for the Board of Management.

For the 2026–2028 performance period, the Supervisory Board has decided to apply the following LTI performance

measures and target-setting under the 2025 Remuneration Policy for the Board of Management:

		Performance targets
Performance metric	Weight	Threshold	Target	Stretch
Relative TSR	25%	As per Remuneration Policy
ROAIC (2026–2028)1 (Non-GAAP measure)	35%	45%	55%	65%
ESG measures2	20%
Consisting of the following sub-measures:
EUV EXE:5200C single patterning (kWh per wafer pass,<br><br>with NXE:3800E multi-patterning as baseline)	5.0%	8.8	8.6	8.4
Localization of service part repair, reducing related<br><br>logistics emissions by up to 26% annually (% of service<br><br>parts that were sent for repair locally)	5.0%	50%	60%	70%
Gender diversity:	5.0%
• % Inflow of women JG 9+ (external and internal inflow)		24%	26%	28%
• % Representation of women in JG 13+		15.5%	16.5%	17.5%
Engagement and inclusion:	5.0%
• Employee engagement: delta between ASML and<br><br>benchmark 3 year rolling average (benchmark is top<br><br>25% performing companies)		—4p.p.	—2 p.p.	0 p.p.
• Inclusion: delta between ASML and benchmark 3 year<br><br>rolling average (benchmark is top 25% performing<br><br>companies)		—4p.p.	—2 p.p.	0 p.p.
Technology Leadership Index	20%	4	6	10
Total	100%

1.The ROAIC 2026–2028 (Non-GAAP measure) is based on a three-year (2026-2028) average by dividing the income after income taxes (at target

R&D) by the average invested capital. Average invested capital is calculated by taking the average of total assets minus cash and cash equivalents,

short-term investments, total current liabilities and non-current contract liabilities at the start and end of each quarter over three years. Mergers and

acquisitions will be excluded from the evaluation after the LTI period. We believe that ROAIC is a meaningful measure because it quantifies our

effectiveness in generating returns relative to the capital invested in our business over the past three years.

2.For the Board of Management member based in the US, the gender diversity performance metrics are omitted, and an increased weighting is

applied on the Employee engagement and Inclusion score.

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Board of Management remuneration (continued)

Total remuneration Board of Management

The remuneration of the members of the Board of Management based on incurred accounting expenses in 2025, 2024 and 2023 is included in the table below (amounts are in € thousands).

The accounting expenses of the remuneration reported as LTI is evenly distributed over the three-year vesting period of each share award. The accounting expenses are divided into market-based and non-market-based elements.

For the non-market based elements, the accounting expense is based on the maximum-achievable payout during the first two years of the vesting period. In the third and final year of the vesting period, the share award’s estimate is

adjusted to reflect the actual payout. The market-based element is accounted for at the target payout.

Board of Management member	Financial year	Base salary	Pension	Other benefits		Total fixed	% Fixed	STI	LTI		Total variable	% Variable	Ratio<br><br>fixed/variable	Total<br><br>remuneration
C.D. Fouquet1	2025	1,125	181	72		1,378	19.6%	2,405	3,238		5,643	80.4%	0.24	7,021
	2024	979	111	63		1,153	21.2%	1,532	2,747		4,279	78.8%	0.27	5,432
	2023	725	82	56		863	24.5%	883	1,773		2,656	75.5%	0.32	3,519
F.J.M. Schneider-Maunoury	2025	784	171	59		1,014	23.2%	1,229	2,123		3,352	76.8%	0.30	4,366
	2024	754	161	51		966	23.0%	1,026	2,217		3,243	77.0%	0.30	4,209
	2023	725	148	45		918	25.7%	883	1,773		2,656	74.3%	0.35	3,574
R.J.M. Dassen	2025	784	146	68		998	22.9%	1,229	2,123		3,352	77.1%	0.30	4,350
	2024	754	133	60		947	22.6%	1,026	2,217		3,243	77.4%	0.29	4,190
	2023	725	121	56		902	25.4%	883	1,773		2,656	74.6%	0.34	3,558
W.R. Allan2	2025	784	138	189	5	1,111	24.9%	1,229	2,123		3,352	75.1%	0.33	4,463
	2024	754	133	163	5	1,050	26.9%	1,026	1,821		2,847	73.1%	0.37	3,897
	2023	492	82	38		612	29.6%	599	860		1,459	70.4%	0.42	2,071
J.P. Koonmen3,4	2025	757	12	433	5	1,202	29.4%	1,186	1,695	6	2,881	70.6%	0.42	4,083
	2024	516	8	206	5	730	31.1%	702	915		1,617	68.9%	0.45	2,347
Total Board of Management	2025	4,234	648	821		5,703	23.5%	7,278	11,302		18,580	76.5%	0.31	24,283
	2024	3,757	546	543		4,846	24.1%	5,312	9,917		15,229	75.9%	0.32	20,075
	2023	2,667	433	195		3,295	25.9%	3,248	6,179		9,427	74.1%	0.35	12,722

1.Christophe D. Fouquet was appointed as President and CEO of ASML on April 24, 2024.

Wayne R. Allan was appointed as a member of the Board of Management on April 26, 2023.
James (Jim) P. Koonmen was appointed as a member of the Board of Management on April 24, 2024.
James (Jim) P. Koonmen is remunerated in US dollars. In 2025, his US dollar-denominated equivalent of his cumulative base salary as a member of the Board of Management was $849,323 (€756,747). His 2025 Short-Term Incentive (STI) payout is calculated based on his US dollar-

denominated equivalent cumulative base salary, resulting in a total of $1,331,314 (€1,186,202).

Wayne R. Allan (2025: €120,911, 2024: €102,867) and James (Jim) P. Koonmen (2025: €384,784, 2024: €177,055) received compensation to address the effects of double taxation in both the Netherlands and the United States.
As a member of the Board of Management, (Jim) P. Koonmen received LTI grants in 2024 and 2025.

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Board of Management remuneration (continued)

Total remuneration former Board of Management

Peter Wennink and Martin van den Brink are no longer part of the Board of Management, as they retired as Presidents from ASML on April 24, 2024.

Former Board of Management member	Financial year	Base salary	Pension	Other benefits	Total fixed	% Fixed	STI	LTI	Total variable	% Variable	Ratio<br><br>fixed/variable	Total<br><br>remuneration
P.T.F.M. Wennink1,2,3	2024	345	82	119	546	10.9%	494	3,953	4,447	89.1%	0.12	4,993
	2023	1,040	248	61	1,349	22.7%	1,400	3,192	4,592	77.3%	0.29	5,941
M.A. van den Brink1,2	2024	345	82	111	538	10.8%	494	3,953	4,447	89.2%	0.12	4,985
	2023	1,040	248	59	1,347	22.7%	1,400	3,192	4,592	77.3%	0.29	5,939
Total former Board of Management	2024	690	164	230	1,084	10.9%	988	7,906	8,894	89.1%	0.12	9,978
	2023	2,080	496	120	2,696	22.7%	2,800	6,384	9,184	77.3%	0.29	11,880

1.On April 24, 2024, Peter T.F.M. Wennink and Martin A. van den Brink stepped down from their roles as Presidents of ASML. They are still eligible for the performance shares awarded under the LTI plans for the years 2022, 2023 and 2024, which will vest based on the performance criteria

outlined in their grant letters. Their 2024 LTI plan has been granted on a prorated in time basis to reflect end of term. Consequently, the remaining associated LTI expenses have been recognized over the remaining service period, from the announcement of their retirement on November 30,

2023, until their actual retirement on April 24, 2024.

2.In 2025, a release of accounting expenses upon vesting was recorded linked to the LTI plan for 2023-2025 amounting to €692,465 individually, in order to reflect the actual payout.

3.An amount of €618,372 is payable in 2026 for the tax levy payable to the Dutch tax authorities by the Company pursuant to Article 32bb of the Dutch wage tax act.

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Board of Management remuneration (continued)

Share-based payments

Performance-based share-based remuneration for current members of the Board of Management is disclosed in the table below. Fractional shares are rounded to full shares for reporting purposes.

				Of market-based element		Of non-market-based elements
Board of Management member	Grant date	Status	Full control	Number of<br><br>shares at target	Fair value at<br><br>grant date	Number of<br><br>shares at target	Fair value at<br><br>grant date	Total number of<br><br>shares at target	Total number of<br><br>shares at<br><br>maximum<br><br>(200%)	Vesting date	Number of<br><br>vested shares<br><br>on publication<br><br>date3	Year-end<br><br>closing share<br><br>price in year of<br><br>vesting3	End of lock-up<br><br>date
C.D. Fouquet	4/23/25	Conditional	No	1,157	918.9	3,472	567.2	4,629	9,258	1/1/28	n/a	n/a	1/1/30
	1/23/24	Conditional	No	1,065	939.9	2,485	692.7	3,550	7,100	1/1/27	n/a	n/a	1/1/29
	1/27/23	Conditional1	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	3,348	921.4	1/1/28
	4/29/22	Unconditional	No	483	596.0	1,126	533.5	1,609	3,217	1/1/25	2,128	678.7	1/1/27
	1/22/21	Unconditional	No	717	635.6	1,670	454.9	2,387	4,774	1/1/24	3,763	681.7	1/1/26
F.J.M. Schneider-Maunoury	4/23/25	Conditional	No	660	918.9	1,979	567.2	2,639	5,278	1/1/28	n/a	n/a	1/1/30
	1/23/24	Conditional	No	668	939.9	1,559	692.7	2,227	4,453	1/1/27	n/a	n/a	1/1/29
	1/27/23	Conditional1	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	3,348	921.4	1/1/28
	4/29/22	Unconditional	No	483	596.0	1,126	533.5	1,609	3,217	1/1/25	2,128	678.7	1/1/27
	1/22/21	Unconditional	No	717	635.6	1,670	454.9	2,387	4,774	1/1/24	3,763	681.7	1/1/26
R.J.M. Dassen	4/23/25	Conditional	No	660	918.9	1,979	567.2	2,639	5,278	1/1/28	n/a	n/a	1/1/30
	1/23/24	Conditional	No	668	939.9	1,559	692.7	2,227	4,453	1/1/27	n/a	n/a	1/1/29
	1/27/23	Conditional1	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	3,348	921.4	1/1/28
	4/29/22	Unconditional	No	483	596.0	1,126	533.5	1,609	3,217	1/1/25	2,128	678.7	1/1/27
	1/22/21	Unconditional	No	717	635.6	1,670	454.9	2,387	4,774	1/1/24	3,763	681.7	1/1/26
W.R. Allan	4/23/25	Conditional	No	660	918.9	1,979	567.2	2,639	5,278	1/1/28	n/a	n/a	1/1/30
	1/23/24	Conditional	No	668	939.9	1,559	692.7	2,227	4,453	1/1/27	n/a	n/a	1/1/29
	1/27/23	Conditional1	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	3,348	921.4	1/1/28
J.P. Koonmen2	4/23/25	Conditional	No	673	918.9	2,020	567.2	2,693	5,386	1/1/28	n/a	n/a	1/1/30
	1/23/24	Conditional	No	676	939.9	1,578	692.7	2,255	4,509	1/1/27	n/a	n/a	1/1/29

1.The LTI plans that were granted on January 27, 2023 became unconditional after the vesting date on January 1, 2026.

James (Jim) P. Koonmen’s share-based remuneration is based on ASML NY shares (Nasdaq stock exchange). The fair value of his 2025 Long-Term Incentive (LTI) grant for the marked-based element is $1,040.8 and for the non-marked-based elements is $642.5.
Multiplying the number of vested shares by the year-end closing share price gives the total value of vested shares for that year, reflecting their worth using that year's closing price.

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Board of Management remuneration (continued)

Performance-based share-based remuneration for former members of the Board of Management is disclosed in the below table. Fractional shares are rounded down to full shares for reporting purposes.

				Of market-based element		Of non-market-based elements
Former Board of Management member	Grant date	Status	Full control	Number of<br><br>shares at<br><br>target	Fair value at<br><br>grant date	Number of<br><br>shares at<br><br>target	Fair value at<br><br>grant date	Total number<br><br>of shares at<br><br>target	Total number of<br><br>shares at<br><br>maximum<br><br>(200%)	Vesting date	Number of<br><br>vested shares<br><br>on publication<br><br>date3	Year-end<br><br>closing share<br><br>price in year of<br><br>vesting3	End of lock-up<br><br>date
P.T.F.M. Wennink1	1/23/24	Conditional	No	316	939.9	738	692.7	1,054	2,109	1/1/27	n/a	n/a	1/1/29
	1/27/23	Conditional2	No	1,049	901.9	2,447	603.4	3,496	6,991	1/1/26	4,802	921.4	1/1/28
	4/29/22	Unconditional	No	709	596.0	1,655	533.5	2,364	4,727	1/1/25	3,126	678.7	1/1/27
	1/22/21	Unconditional	No	1,053	635.6	2,455	454.9	3,508	7,016	1/1/24	5,531	681.7	1/1/26
M.A. van den Brink1	1/23/24	Conditional	No	316	939.9	738	692.7	1,054	2,109	1/1/27	n/a	n/a	1/1/29
	1/27/23	Conditional2	No	1,049	901.9	2,447	603.4	3,496	6,991	1/1/26	4,802	921.4	1/1/28
	4/29/22	Unconditional	No	709	596.0	1,655	533.5	2,364	4,727	1/1/25	3,126	678.7	1/1/27
	1/22/21	Unconditional	No	1,053	635.6	2,455	454.9	3,508	7,016	1/1/24	5,531	681.7	1/1/26

2023, until their actual retirement on April 24, 2024.

2.The LTI plans that were granted on January 27, 2023 became unconditional after the vesting date on January 1, 2026.

3.Multiplying the number of vested shares by the year-end closing share price gives the total value of vested shares for that year, reflecting their worth using that year's closing price.

Reasons, criteria and principal conditions for granting shares

ASML has sufficient treasury shares as per December 31, 2025 for the purpose of exercising rights related to performance-based share-based remuneration. For the reasons and criteria for granting the performance shares to each

member of the Board of Management, reference is made to the 2025 Remuneration Policy Board of Management and to the section Board of Management Remuneration in 2025 – Long-term incentive as included in this Remuneration

Report. The principal conditions applicable to the 2025 performance shares are described below. These apply to each member of the Board of Management.

Instrument	Performance shares
Grant	Conditional grant on an annual basis based on maximum-achievable opportunity. The number of performance shares to be conditionally awarded is calculated using the volume-weighted average share price during<br><br>the last quarter of the year preceding the conditional award.
Grant date	Date on which the performance shares are conditionally granted.
Performance period	Period of three years over which the achievement of the predefined performance targets is measured.
Vesting	The shares will become unconditional after the end of the performance period, depending on the level of achievement of the predetermined performance targets.
Holding period	The minimum holding period is two years after the vesting date.
	Upon termination of contract, the transfer restrictions will remain in place during the holding period except in case of decease.
	In case a tax payment is due by the members of the Board of Management over the retrieved variable income, performance shares may be partially sold at vesting (‘sell to cover’) in accordance with the law and<br><br>internal regulations.
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Board of Management remuneration (continued)

Relationship between accounted remuneration and company’s performance

The following table provides an overview of the relationship between accounted remuneration and the company’s performance for the past five years:

For the year ended December 31 (€, in thousands)	2021	2022	Change (in %)	2023	Change (in %)	2024	Change (in %)	2025	Change (in %)
Net sales	18,610,994	21,173,448	13.8	27,558,506	30.2	28,262,877	2.6	32,667,251	15.6
Net income based on US GAAP	5,883,177	5,624,209	(4.4)	7,838,994	39.4	7,571,563	(3.4)	9,609,432	26.9
Net income based on EU-IFRS	6,134,595	6,395,775	4.3	8,115,168	26.9	8,348,971	2.9	10,212,993	22.3
ASML share price (closing price on Euronext Amsterdam in €)	706.7	503.8	(28.7)	681.7	35.3	678.7	(0.4)	921.4	35.8
Average number of payroll employees in FTEs	28,223	33,071	17.2	38,805	17.3	41,697	7.5	43,267	3.8
Employee engagement score	78.0%	77.9%	(0.1)	80.3%	3.1	78.4%	(2.4)	78.0%	(0.5)
Remuneration C.D. Fouquet (CEO)1	3,137	2,798	(10.8)	3,519	25.8	5,432	54.4	7,021	29.3
Remuneration F.J.M. Schneider-Maunoury	3,158	2,844	(9.9)	3,574	25.7	4,209	17.8	4,366	3.7
Remuneration R.J.M. Dassen	3,800	2,834	(25.4)	3,558	25.5	4,190	17.8	4,350	3.8
Remuneration W.R. Allan3	n/a	n/a	n/a	2,071	n/a	3,897	88.2	4,463	14.5
Remuneration J.P. Koonmen4	n/a	n/a	n/a	n/a	n/a	2,347	n/a	4,083	74.0
Remuneration P.T.F.M. Wennink (former CEO)2	4,820	4,280	(11.2)	5,941	38.8	4,993	(16.0)	n/a	n/a
Remuneration M.A. van den Brink	4,819	4,279	(11.2)	5,939	38.8	4,985	(16.1)	n/a	n/a
Average remuneration per FTE based on US GAAP	122	125	2.5	138	10.4	145	5.1	153	5.5
Average remuneration per FTE based on EU-IFRS	122	118	(3.3)	143	21.2	145	1.4	153	5.5
Internal pay ratio (CEO versus employee remuneration based on US GAAP)5	40	34	(15.0)	43	26.5	40	(7.0)	46	15.0
Internal pay ratio (CEO versus employee remuneration based on EU-IFRS)5	40	36	(10.0)	42	16.7	40	(4.8)	46	15.0

1.Christophe D. Fouquet was appointed as President and CEO of ASML on April 24, 2024.

As announced by ASML on November 30, 2023, Peter T.F.M. Wennink stepped down from his role as President of ASML on April 24, 2024. As a result, the Long-Term Incentive (LTI) expenses for his ongoing LTI plans were accelerated over his remaining service period in 2023 and 2024.

For comparison purposes, if Mr. Wennink were to remain in service, his normalized LTI expense would amount to €2,575 thousand in 2023, with an internal pay ratio of 42 based on US GAAP and 40 based on EU-IFRS for the same year.

Wayne R. Allan was appointed as a member of the Board of Management on April 26, 2023.
James (Jim) P. Koonmen was appointed as a member of the Board of Management on April 24, 2024.
The calculation of the internal pay ratio is disclosed in the section Relationship between CEO and average remuneration (pay ratio).

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Board of Management remuneration (continued)

Explanation of changes in company’s performance

versus remuneration

The foregoing table aims to provide insight into our

performance over the past five years and the development

of the remuneration. The metrics net sales, net income and

share price are used to measure performance, as they

are key metrics serving as a good proxy for our general

performance, as well as in view of comparability with other

companies. Actual remuneration may fluctuate year on

year depending on actual STI pay-out in any year, as well

as the vesting of performance shares (LTI) in any year

and the share price at that moment.

We have grown significantly over recent years, which is

not only reflected in the number of employees but also in

terms of performance. Over the last five years, total net

sales increased by 76%, net income increased by 63%

based on US GAAP (66% based on EU-IFRS) and

ASML’s share price increased by more than 30%. This

shows that our performance has improved significantly,

leading to several revisions of the Remuneration Policy

for the Board of Management in past years (last update in

2025), resulting in higher base salaries as well as higher

target levels of STI and LTI.

1.Read more in Sustainability statements — Attractive workplace

for all – Metrics table – Annual total remuneration ratio

Relationship between CEO and average remuneration

(pay ratio)

The internal pay ratio consists of the CEO’s total

remuneration (including all remuneration components)

during 2025 of €7,021 thousand, compared to the

average remuneration of all employees. The average

remuneration of all employees was calculated taking into

account the total employee personnel expenses (wages

and salaries + social security expenses + pension and

retirement expenses + share-based payments), divided

by the average number of payroll employees in FTE =

€6,612.8 million divided by 43,267 = €153 thousand. This

ratio has neither been prepared to comply with the Pay

Ratio Disclosure requirements under SEC regulations nor

with the ESRS requirements1. The ratio is based on the

highest-paid individual according to accounting values

consisting of fixed and variable remuneration elements

compared to the average remuneration of all employees

that are in service with the company, which excludes all

other Board of Management members. This calculation

approach brings the ratio in line with the requirements of

the Corporate Governance Code.

The internal pay ratio (CEO versus employee remuneration)

based on US GAAP and EU-IFRS increased to 46:1

in 2025 (2024: 40:1). The increase is mainly the result of

increased expenses for Mr. Fouquet following the 2025

Remuneration Policy for the Board of Management.

We intend to grant competitive remuneration to employees

at all position levels. At each level remuneration should

reflect the responsibilities of the role. The build-up of

remuneration from level to level should therefore be

gradual and in line with increasing responsibilities, as

well as following market practice. At the highest level

the steps become gradually bigger as responsibilities

ultimately rise from a divisional level to an overall

company level. The Supervisory Board considers the

current build-up and the overall pay ratio to be equitable,

considering our current performance.

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Supervisory Board remuneration

In this section of the Remuneration Report, we provide

an overview of the 2023 Remuneration Policy for the

Supervisory Board, which was adopted by the General

Meeting on April 26, 2023, and has been in force since

April 1, 2023. Additionally, we outline the remuneration

levels adopted by the General Meeting on April 26, 2023,

and April 23, 2025, which are in force from April 1, 2023,

and April 1, 2025, respectively. We provide information

about the implementation of the 2023 Remuneration

Policy in 2025 by giving details of the members’ actual

remuneration in 2025. The 2023 Remuneration Policy

and remuneration levels can both be found in the

Governance section of our website.

Remuneration Policy

Remuneration objectives and principles

The 2023 Remuneration Policy for the Supervisory

Board is designed to enable ASML to attract and retain

qualified Supervisory Board members, who together

compose a diverse and balanced Supervisory Board

with the appropriate level of skills, competencies and

experience required to properly supervise (the execution

of) our strategy and performance, which is focused on

the creation of sustainable long-term value for

all stakeholders.

The Remuneration Policy for the Supervisory Board

is built on the following principles:

•Competitiveness – The remuneration structure and

levels intend to be competitive in the relevant market,

while at the same time taking into account societal

trends and perceptions.

•Alignment – The policy is benchmarked to

market practice.

•Fairness – The remuneration should reflect the

time spent and the responsibilities of the members.

•Independence – The remuneration of a member

may not be made dependent on the results of

the company.

•Compliance – ASML adopts the highest standards

of good corporate governance.

•Simplicity and transparency – The Remuneration

Policy and its execution are as simple as possible

and easily understandable for all stakeholders.

Reference group and market positioning

The remuneration of the Supervisory Board should be

competitive compared with a relevant reference market.

This market is defined using a reference group of

companies with a two-tier board structure included in

the AEX Index of Euronext Amsterdam. To determine

the appropriate positioning within this group, market

cap, revenue and number of employees are taken into

account. In addition, given the international character

of ASML and our Supervisory Board, market benchmark

is also conducted against the international Board of

Management reference group to provide broader

market reference and context.

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Supervisory Board remuneration (continued)

Summary of Remuneration of the Supervisory Board

This table provides an overview of the 2024 and 2025 implementation of the Remuneration Policy for the Supervisory Board as adopted by the 2023 AGM and remuneration levels of the members of the Supervisory Board as adopted at

the 2023 AGM and 2025 AGM.

Fixed remuneration
Description in 2023 Remuneration Policy		2024	2025
Fixed remuneration paid in cash including a base membership fee,<br><br>committee fees and additional compensation contingent on<br><br>Supervisory Board members’ activities and responsibilities.	Chair of Supervisory Board	€140,000	165,000
	Vice Chair of Supervisory Board	€100,000	125,000
	Member of Supervisory Board	€80,000	105,000
	Chair Audit Committee	€27,000	32,000
	Member Audit Committee	€18,000	22,000
	Chair of other committees	€22,000	26,000
	Member of other committees	€16,000	18,000
Extra allowance for intercontinental meetings
Description in 2023 Remuneration Policy		2024	2025
Extra, fixed allowance paid in connection with additional time<br><br>commitment for intercontinental travel.	For each meeting that involves<br><br>intercontinental travel.	€5,000	5,000
Expenses
Description in 2023 Remuneration Policy		2024	2025
Expenses incurred in relation to meeting attendance are reimbursed.<br><br>In addition, a fixed net cost allowance may be granted, covering<br><br>certain pre-defined out-of-pocket expenses.	Fixed net cost allowance
	Chair of Supervisory Board	€1,980	No longer applicable
	Member of Supervisory Board	€1,380	No longer applicable
Remuneration in special circumstances
The Supervisory Board may, upon recommendation of the<br><br>Remuneration Committee, grant additional remuneration in special<br><br>circumstances. This may concern granting increased Supervisory<br><br>Board and/or committee fees, depending on the character of the<br><br>circumstances – for instance, if there were a significant increase<br><br>in time investment by its members.	The additional annual remuneration per member will be capped at<br><br>one time the amount of the annual Supervisory Board membership<br><br>fee payable to such member.<br><br><br><br>The Supervisory Board considers an increase of at least 25% a<br><br>significant increase in time investment.

All values are in Euros.

Loans and guarantees
Description	Value
No (personal) loans or guarantees or the like will be granted.	Not applicable
Shares and share ownership
Description	Value
No (rights to) shares are granted by way of remuneration. Any<br><br>holding of ASML shares is for the purpose of long-term investment.<br><br>Any trading activity is subject to our Insider Trading Rules.	Not applicable
Other arrangements
Description	Value
(Re)appointment based on Dutch law and our Articles of<br><br>Association. No clawback, severance or change in control<br><br>arrangements is in place.	Not applicable

1.Adopted by the 2025 AGM and applicable as from April 1, 2025, onwards.

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Supervisory Board remuneration (continued)

Remuneration of the Supervisory Board in 2025

Overview of the remuneration of the Supervisory Board members based on incurred accounting expenses over the last five years (amounts are in € thousands):

Supervisory Board member	Membership fees<br><br>2025	Committee fees<br><br>2025	Allowances 20251	Ratio fixed/variable<br><br>2025	Total remuneration<br><br>2025	Total remuneration<br><br>2024	Total remuneration<br><br>2023	Total remuneration<br><br>2022	Total remuneration<br><br>2021
N.S. Andersen	159	46	5	1.0	210	187	123	n/a	n/a
T.L. Kelly	113	43	15	1.0	171	129	137	126	107
B.M. Conix	99	46	5	1.0	150	126	109	99	63
D.M. Durcan	99	43	15	1.0	157	144	137	126	112
D.W.A. East	99	52	10	1.0	161	120	119	99	93
J.P. de Kreij	99	48	5	1.0	152	129	85	n/a	n/a
A.F.M. Everke	99	35	5	1.0	139	118	104	66	n/a
A.L. Steegen	99	35	10	1.0	144	118	109	66	n/a
C.E.G. van Gennip	72	25	10	1.0	107	n/a	n/a	n/a	n/a
Total	938	373	80	1.0	1,391	1,071	923	582	375

1.Allowances consist of fixed-expense allowances (until April 1, 2025) and allowances for intercontinental meetings.

No pay has been granted in 2025 pursuant to the ‘Remuneration in special circumstances clause’ as included in the 2023 Remuneration Policy for the Supervisory Board. No variable pay has been granted to the current and former

members during the last five years. The remuneration of the Supervisory Board is not directly linked to the performance of ASML, in line with the remuneration principles set out in the 2023 Remuneration Policy for the Supervisory Board.

Remuneration of former Supervisory Board members

Overview of the remuneration awarded to the former Supervisory Board members in 2025, 2024 and 2023 (amounts are in € thousands):

Former Supervisory Board member	Total remuneration<br><br>2025	Total remuneration<br><br>2024	Total remuneration<br><br>2023
A.P. Aris	48	154	152
G.J. Kleisterlee	n/a	n/a	61
R.D. Schwalb	n/a	n/a	37
Total	48	154	250
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Other Information

Total remuneration

The total annual remuneration for the members of

the Board of Management and the Supervisory Board

members (current and former) during 2025 amounts

to €25.7 million (2024: €31.3 million).

Other arrangements

No remuneration has been granted for (supervisory)

directorships or other positions of Board of Management

members in subsidiaries of ASML or other companies

whose financials are consolidated by ASML, in accordance

with the agreements with the members of the Board

of Management.

No (personal) loans have been granted to the members

of the Board of Management or the Supervisory Board

and no guarantees or the like have been granted in favor

of any of the members of the Board of Management and

the Supervisory Board.

No severance payments were granted to members of the

Board of Management and the Supervisory Board in 2025.

Clawback

ASML has implemented the clawback provisions as

laid down in the Dutch Civil Code in the agreements with

the members of the Board of Management. Furthermore,

in order to comply with the rules implementing incentive-

based compensation recovery (clawback) as issued by

the SEC and Nasdaq, the Supervisory Board adopted the

ASML Clawback Policy under US/Nasdaq Rules.

This policy has been filed as an exhibit to ASML's 2023

Annual Report on Form 20-F and is incorporated by

reference into this report.

No variable remuneration has been clawed back

during 2025.

Deviations

In 2025, no deviations took place from the decision-

making process for the implementation of the applicable

remuneration policies for the Board of Management

and the Supervisory Board and no temporary deviations

took place.

Shareholder voting

At the 2025 AGM, the 2025 Remuneration Policy for

the Board of Management was adopted with 91.43% of

the votes cast in favor of the proposal. Furthermore, the

Supervisory Board fee structure and levels were adopted

with 98.17% of the votes cast in favor.

The Remuneration Report for the financial year 2024

was submitted to the 2025 AGM for an advisory vote.

92.76% of the votes were cast in favor.

This Remuneration Report will be submitted to the 2026

AGM for an advisory vote in line with Dutch law.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	138
General disclosures	Environmental	Social	Governance
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Sustainability

statements

139	Limited assurance report of the independent auditor<br><br>on the Sustainability statements
	General disclosures
142	Basis for preparation
144	ESG sustainability governance
146	ESG sustainability at a glance
147	Value chain and ecosystem overview
148	Environmental and human rights due diligence
150	Impact, risk and opportunity management
153	Environmental
154	Energy efficiency and climate action
188	Circular economy
203	EU Taxonomy
209	Other disclosures: Water management in our own operations
210	Social
211	Attractive workplace for all
237	Responsible value chain
246	Innovation ecosystem
251	Valued partner in our communities
261	Governance
262	ESG integrated governance
269	Reference table

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General disclosures	Environmental	Social	Governance
---	---	---	---

Limited assurance report of the independent auditor on the Sustainability statements

To: the General Meeting of Shareholders and the

Supervisory Board of ASML Holding N.V.

Our limited assurance conclusion

Based on the procedures we have performed and the

assurance evidence we have obtained, nothing has come

to our attention that causes us to believe that the

consolidated Sustainability statements (the Sustainability

statements) of ASML Holding N.V. (the Company) for

2025 are not, in all material respects,

•prepared in accordance with the European

Sustainability Reporting Standards (ESRS) as adopted

by the European Commission and in accordance with

the process, carried out by the Company, to identify

the information to be reported pursuant to the ESRS;

and

•compliant with the reporting requirements provided for

in Article 8 of Regulation (EU) 2020/852 (the Taxonomy

Regulation).

The subject matter of our limited assurance

procedures

We have conducted a limited assurance engagement on

the consolidated Sustainability statements of ASML

Holding N.V., Veldhoven, the Netherlands for 2025,

included in section 'Sustainability statements' of the

Annual Report 2025 including the information

incorporated in the Sustainability statements by reference

(hereafter: the Sustainability statements).

In the Sustainability statements, references are made to

external sources or websites. The information on these

external sources or websites is not subject to our limited

assurance procedures for the Sustainability statements.

We therefore do not provide assurance on this

information. Furthermore, in the Sustainability statements

references are made to other sections of the Annual

Report, indicated by 'read more in'. The information

included in these other sections, except for the

information incorporated by reference as identified in

section 'Reference table' in the Sustainability statements,

is not subject to our limited assurance procedures.

The basis for our conclusion

We conducted our limited assurance engagement in

accordance with Dutch law, including the Dutch Standard

3810N ‘Assuranceopdrachten inzake

duurzaamheidsverslaggeving’ (assurance engagements

relating to sustainability reporting), which is a specific

Dutch Standard that is based on the International

Standard on Assurance Engagements (ISAE) 3000

(Revised) ‘Assurance engagements other than audits or

reviews of historical financial information’.

Our responsibilities under this standard are further

described in the section ‘Our responsibilities for the

limited assurance engagement on the Sustainability

statements’ of our report. We believe that the assurance

evidence we have obtained is sufficient and appropriate

to provide a basis for our conclusion.

Our independence and quality management

We are independent of ASML Holding N.V. in accordance

with the ‘Verordening inzake de onafhankelijkheid van

accountants bij assuranceopdrachten’ (ViO, Code of

ethics for professional accountants, a regulation with

respect to independence) and other relevant

independence regulations in the Netherlands.

Furthermore, we have complied with the ‘Verordening

gedrags- en beroepsregels accountants’ (VGBA, Dutch

Code of Ethics).

PwC applies the applicable quality management

requirements pursuant to the ‘Nadere voorschriften

kwaliteitsmanagement’ (NVKM, regulations for quality

management) and the International Standard on Quality

Management (ISQM) 1 and accordingly maintains a

comprehensive system of quality management including

documented policies and procedures regarding

compliance with ethical requirements, professional

standards and other relevant legal and regulatory

requirements.

Inherent limitations in preparing the

Sustainability statements

In reporting forward-looking information in accordance

with the ESRS, the Board of Management of the

Company is required to prepare the forward-looking

information based on disclosed assumptions about

events that may occur in the future and possible future

actions by the Company. The actual outcome is likely to

be different since anticipated events frequently do not

occur as expected. Forward-looking information relates

to events and actions that have not yet occurred and may

never occur.

The comparability of sustainability information between

entities and over time may be affected by the lack of

historical sustainability information in accordance with

the ESRS and by the absence of a uniform practice on

which to draw, to evaluate and measure this information.

This allows for the application of different, but

acceptable, measurement techniques, especially in the

initial years.

The quantification of greenhouse gas emissions is

subject to inherent limitations because of evolving

methods and knowledge underlying emission factors and

other assumptions, including for those sourced from third

parties.

Responsibilities for the Sustainability

statements and for the limited assurance

procedures thereon

Responsibilities of the Board of Management and the

Supervisory Board for the Sustainability statements

The Board of Management of ASML Holding N.V. is

responsible for the preparation of the Sustainability

statements in accordance with ESRS, including the

development and implementation of the double

materiality process, which is a process to identify the

information reported in the Sustainability statements in

accordance with the ESRS and for disclosing this

process in the Sustainability statements.

This responsibility includes:

•understanding the context in which ASML Holding

N.V.’s activities and business relationships take place

and developing an understanding of its affected

stakeholders;

•the identification of the actual and potential impacts

(both negative and positive) related to sustainability

matters, as well as risks and opportunities that affect,

or could reasonably be expected to affect, the

Company’s financial position, financial performance,

cash flows, access to finance or cost of capital over

the short-, medium-, or long-term;

•the assessment of the materiality of the identified

impacts, risks and opportunities related to

sustainability matters by selecting and applying

appropriate thresholds; and

•making assumptions and estimates that are

reasonable in the circumstances.

The Board of Management is also responsible for

preparing the disclosures in compliance with the

reporting requirements provided in the Taxonomy

Regulation.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Limited assurance report of the independent auditor on the Sustainability statements (continued)

The Board of Management is also responsible for

selecting and applying additional entity-specific

disclosures to enable users to understand the

Company’s sustainability-related impacts, risks or

opportunities and for determining that these additional

entity-specific disclosures are suitable in the

circumstances and in accordance with the ESRS.

Furthermore, the Board of Management is responsible for

such internal control as the Board of Management

determines is necessary to enable the preparation of the

Sustainability statements that are free from material

misstatement, whether due to fraud or error.

The Supervisory Board is responsible for overseeing the

Company’s sustainability reporting process including the

double materiality process carried out by the Company.

Our responsibilities for the limited assurance

engagement on the Sustainability statements

Our responsibility is to plan and perform the limited

assurance engagement in a manner that allows us to

obtain sufficient appropriate assurance evidence to

provide a basis for our conclusion.

Our objectives are to obtain a limited level of assurance,

as appropriate, about whether the Sustainability

statements are free from material misstatements, and to

issue a limited assurance conclusion in our report.

Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate,

they could reasonably be expected to influence decisions

of users taken on the basis of the Sustainability

statements. The procedures vary in nature and timing

from, and are less in extent than for, a reasonable

assurance engagement. The level of assurance obtained

in a limited assurance engagement is therefore

substantially lower than the assurance obtained in a

reasonable assurance engagement.

Our responsibilities in respect of the Sustainability

statements, in relation to the process to identify the

information to be reported in the Sustainability

statements (the process) include:

•Obtaining an understanding of the process, but not for

the purpose of providing a conclusion on the

effectiveness of the process, including the outcome of

the process;

•Considering whether the information identified

addresses the applicable disclosure requirements of

the ESRS; and

•Designing and performing procedures to evaluate

whether the process is consistent with the Company's

description of its process set out in the Sustainability

statements.

Our other responsibilities in respect of the limited

assurance engagement on the Sustainability statements

include:

•Performing risk assessment procedures, including

obtaining an understanding of internal control relevant

to the engagement, to identify where material

misstatements are likely to arise, whether due to fraud

or error; and

•Designing and performing procedures responsive to

where material misstatements are likely to arise in the

Sustainability statements. The risk of not detecting a

material misstatement resulting from fraud is higher

than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

Summary of procedures performed

The nature, timing and extent of procedures selected

depend on professional judgment, including the

identification of disclosures where material

misstatements are likely to arise in the Sustainability

statements, whether due to fraud or error.

We have exercised professional judgment and have

maintained professional skepticism throughout the

assurance engagement, in accordance with the Dutch

Standard 3810N, ethical requirements and independence

requirements. Our procedures included, amongst others,

the following:

•Performing inquiries and an analysis of the external

environment and obtaining an understanding of

relevant sustainability themes and issues, the

characteristics of the Company, its activities and the

value chain and its key intangible resources to assess

the process to identify the information to be reported

carried out by the Company as the basis for the

Sustainability statements and disclosure of all material

sustainability-related impacts, risks and opportunities

in accordance with ESRS.

•Obtaining through inquiries a general understanding of

the internal control environment, the Company’s

processes for gathering and reporting entity-related

and value chain information, the information systems

and the Company’s risk assessment process relevant

to the preparation of the Sustainability statements and

for identifying the Company’s activities, determining

eligible and aligned activities and preparation of the

disclosures provided for in the Taxonomy Regulation,

without testing the operating effectiveness of controls.

•Assessing the double materiality process carried out

by the Company and identifying and assessing areas

of the Sustainability statements, including the

disclosures provided for in the Taxonomy Regulation

where misleading or unbalanced information or

material misstatements, whether due to fraud or error,

are likely to arise. We designed and performed further

assurance procedures aimed at determining that the

Sustainability statements are free from material

misstatements responsive to this risk analysis.

•Considering whether the description of the process to

identify the information to be reported in the

Sustainability statements made by the Board of

Management appears consistent with the process

carried out by the Company.

•Evaluating the methods, assumptions and data for

developing estimates and forward-looking information.

Assessing whether the Company’s methods for

developing estimates are appropriate and have been

consistently applied for selected disclosures. Our

procedures did not include testing the data on which

the estimates are based or separately developing our

own estimates against which to evaluate the

Company’s estimates. We do not provide assurance

on the achievability of this forward-looking information.

•Analysing, on a limited sample basis, relevant internal

and external documentation at the level of the

Company (including other entities or value chain from

which the information may stem) for selected

disclosures.

•Reading the other information in the annual report to

identify material inconsistencies, if any, with the

Sustainability statements.

•Considering whether the disclosures provided to

address the reporting requirements provided for in the

Taxonomy Regulation for each of the environmental

objectives, reconcile with the underlying records of the

Company and are consistent or coherent with the

Sustainability statements, appear reasonable, in

particular whether anything came to our attention that

would cause us to believe that the eligible economic

activities do not meet the cumulative conditions to

qualify as aligned and the technical criteria are not

met, and the accompanying key performance

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	141
General disclosures	Environmental	Social	Governance
---	---	---	---

Limited assurance report of the independent auditor on the Sustainability statements (continued)

indicators disclosures have not been defined and

calculated in accordance with the Taxonomy reference

framework, and do not comply with the reporting

requirements provided for in the Taxonomy

Regulation, including the format in which the activities

are presented.

•Reconciling the relevant financial information to the

financial statements.

•Considering the overall presentation, structure and the

balanced content of the Sustainability statements,

including the reporting requirements provided for in

the Taxonomy Regulation.

•Considering, based on our limited assurance

procedures and evaluation of the assurance evidence

obtained, whether anything came to our attention that

would cause us to believe that the Sustainability

statements as a whole, including the sustainability

matters and disclosures, are not clearly and

adequately disclosed in accordance with ESRS.

Calculations to determine information as included in the

Sustainability statements could be based on

assumptions and sources from third parties that include

information about, among others, value chain and

information collected from actors in the value chain,

when appropriate. We have not performed procedures on

the content of these assumptions and these external

sources, other than evaluating the suitability and

plausibility of these assumptions and sources from third

parties used.

We communicate with the Supervisory Board regarding,

among other matters, the planned scope and timing of

the limited assurance engagement and significant

findings that we identify during our limited assurance

engagement.

Eindhoven, The Netherlands

February 25, 2026

PricewaterhouseCoopers Accountants N.V.

Fernand Izeboud RA

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	142
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---	---	---	---

Basis for preparation

General basis for preparation

of the Sustainability statements

The Sustainability statements in the Management

Report have been prepared in accordance with

the European Sustainability Reporting Standards

(ESRS), referred to in Article 29b of the EU

Accounting Directive and with the specifications

established pursuant to Article 8(4) of the EU

Taxonomy Regulation.

The Sustainability statements have been prepared

on a consolidated basis, the scope of which is the

same as for the Consolidated financial

statements. No subsidiaries are exempt. Where

relevant and available, our disclosures also

include our value chain, both upstream and

downstream. If information is sensitive and/or

classified – because it relates to intellectual

property, know-how or the results of innovation –

it is omitted. Based on the amendment to

Delegated Regulation (EU) 2023/2772, also

referred to as the ‘Quick fix’, we continue to apply

phase-in reliefs for some metrics where we did in

2024.

Scope of policies

Unless indicated otherwise, our policies apply

to all directors, officers, managers and employees

of ASML and the ASML group of companies in

all locations worldwide.

Disclosures in relation to specific circumstances

Time horizons

Unless otherwise stated, the following time

horizons – in accordance with European

Sustainability Reporting Standards (ESRS) –

are applicable for the disclosures made:

•Short term: Within one year of the

reporting date

•Medium term: From one up to five years

•Long term: More than five years

Where other time horizons provide better

information, these are applied and detailed

alongside the disclosure.

Value chain estimation

When metrics include upstream and/or downstream

value chain data, it might be necessary to apply

estimates using indirect sources like sector averages

or other proxies. If indirect sources are applied,

these are disclosed in the ‘Methodology on

metrics’ section, indicating their origin and level of

accuracy using qualitative disclosure or outcome

ranges. If we change our methodology to improve

accuracy, we will detail those changes.

Sources of estimation and outcome uncertainty

When metrics are subject to a high level of

measurement uncertainty, the source is disclosed

in the ‘Methodology on metrics’ section, together

with the assumptions, approximations and

judgments applied. Possible sources of

uncertainty include:

•Dependency on the outcome of future events.

•Measurement techniques, including the use

of conversion factors which may include an

element of estimation.

•Availability and quality of value

chain information.

•The information is forward-looking and

therefore uncertain by definition.

•In the future, higher data quality may lead to

different outcomes and a necessity to restate

numbers or recalibrate targets.

One of these sources standalone or several

combined could lead to conditions and

dependencies that impact our ability to meet

our commitments and targets. If currently

known and relevant, we will explain these.

The primary sources of estimation and outcome

uncertainty in the Sustainability statements

relate to:

•Greenhouse gas (GHG) emissions from scope

3 category 1 and category 2, for which we

apply the spend-based method to estimate

the emissions of our suppliers.

•GHG emissions from scope 3 category 11

Use of sold products, for which we apply a

significant assumption regarding expected

lifetime of our systems.

•Resource inflows, for which we apply a

significant assumption that inflow

equals outflow.

Changes in preparation or presentation

of sustainability information

When material changes in the preparation and

presentation of sustainability information occur

compared to the previous reporting period(s),

we will:

•Explain the changes and their reasons,

including why the replaced metric provides

more useful information.

•Disclose revised comparative figures, unless it is

impracticable to do so. When it is impracticable

to adjust comparative information for one or

more prior periods, this will be disclosed.

•Disclose the difference between the preceding

period’s figure and the revised comparative.

Reporting errors in prior periods

When a material error is identified in prior

period(s), we intend to disclose (alongside the

item): the nature; to the extent practicable, the

correction; and, if the correction is impracticable,

the circumstances.

Updating disclosures about events

after the end of the reporting period

If any material information providing evidence

or insights about conditions existing at period

end is received after the reporting period – but

before the Management Report is approved for

issuance – estimates and disclosures will be

updated therefore.

If the information received provides evidence

or insights about material transactions, other

events and conditions that arise after the end

of the reporting period, we will provide narrative

information indicating the existence, nature and

potential consequences of the post-year events.

To the best of our knowledge, no information has

come to our attention after the reporting date that

is not reflected in the Sustainability statements

and that has a material impact on the

Sustainability statements.

Disclosures stemming from other legislation

or generally accepted sustainability reporting

pronouncements

At times, in preparing this report, we have

incorporated information from other recognized

sustainability reporting standards and legislation

to provide a comprehensive view of our

performance. These references have been

integrated into our reporting framework, offering

a detailed and holistic view of our sustainability

initiatives and performance. The relevant

standards and/or legislation are stated

alongside the disclosure.

Coverage of ESRS disclosure requirements

in the Sustainability statements and

incorporation by reference

We have incorporated several disclosure

requirements and data points from ESRS by

reference. Incorporation by reference helps

facilitate the overall readability of our report.

To aid in the lookup of the various ESRS

requirements addressed outside the Sustainability

statements, we have included a reference table.

Furthermore, we have identified and listed all

data points derived from other EU legislations

as mentioned in Appendix B of ESRS 2, indicating

their respective locations within the report and

their materiality status.

Reference table

Identification of material sustainability matters

We have identified the material sustainability

matters for our company based on a Double

Materiality Assessment (DMA).

Connectivity with financial statements

We report some of our emission intensity metrics

and targets based on gross profit. In these

circumstances we use gross profit in accordance

with US GAAP.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Basis for preparation (continued)

Policies adopted to manage material

sustainability matters

The various policies on our sustainability matters

can be found in the ‘How we are managing’

section for each theme.

Our policies are periodically reviewed and

updated based on stakeholder engagement or

other internal and external factors. To support

the implementation of our policies, we make

them available to stakeholders in a tailored way.

Targets

All targets we set are voluntary and have a

worldwide scope, unless otherwise stated.

For all targets and ambitions, conditions and

dependencies exist in a general sense. Possible

conditions and dependencies that could impact

our ability to meet our targets and ambitions

include (non-exhaustively):

•Policy and regulatory change

•Decarbonization trajectory in the economy

•Macroeconomic trends

•Financial factors

•Technological developments

•Data quality and methodology improvements

•The extent to which our value chain partners

implement sustainability improvements

Where targets are subject to a specific

dependency, this is disclosed.

Target details

To focus our efforts on sustainability matters,

we have set targets characterized, where

meaningful, by a defined level, scope, baseline

value and period. They are, where available

and practically applicable, grounded in scientific

evidence and align with international guidelines

where possible.

Methodologies and assumptions

Targets are based on our ambition, historical data

trends and industry benchmarks, and are aligned,

where possible, with recognized sustainability

standards and legislation.

Stakeholder engagement

We use input from stakeholders in defining our

material topics and setting targets. Through our

ongoing engagement, we discuss our strategy

and targets with them.

No measurable target

In certain sustainability areas, we have been

unable to establish targets that fully meet all

qualitative characteristics of information.

However, despite the lack of measurable,

quantitative targets, we remain committed

to monitoring the effectiveness of our policies

and actions related to material IROs.

In these cases, our tracking processes are

characterized by a defined level of ambition,

using both qualitative and quantitative indicators

to evaluate progress from a base period.

If available, we use external information to

assess the effectiveness of our processes.

Actions and resources in relation to material

sustainability matters

In the reporting year, we have undertaken a

series of key actions expected to yield significant

outcomes in the near future.

Scope of key actions

Our actions are broad in scope, encompassing

various facets of our business operations.

Their implementation spans our upstream and

downstream value chain, and our own operations.

Unless otherwise stated, the scope for the key

actions disclosed is worldwide.

Remedial actions

We remain cognizant of the potential for actual

material adverse impacts, and have instituted a

grievance mechanism to address those identified.

We undertake remedial actions, with the aim that

we not only prevent harm but actively contribute

to remediation.

Resource allocation

We have allocated substantial (financial)

resources to fuel our sustainability initiatives.

In cases where it is not possible to quantify the

resources for an action, we have described

the allocation in a qualitative way.

Our future ability to implement actions depends

on the availability and allocation of resources.

Unless otherwise noted, we have only disclosed

actions currently included in our short-, medium-

and long-term financial planning processes.

Ongoing access to finance at an affordable

cost of capital can be critical for the ultimate

implementation of our actions. These include our

adjustments to supply and/or demand changes

and significant R&D costs. Further details on the

individual actions and progress made on each

can be found in the individual theme sections.

Resources allocated to actions are reflected

either under line items cost of sales, R&D costs

or SG&A costs in the consolidated statement of

operations or are capitalized under Property,

plant and equipment or recorded as Right-of-use

assets.

Metrics in relation to material

sustainability matters

In our ongoing commitment to fostering a

sustainable future, we are steadfast in our

dedication to transparency and accountability.

To assess the effectiveness of our strategies

concerning material sustainability matters, we

use various metrics, some delineated in the ESRS

and others identified based on our specific entity

characteristic. Throughout the sustainability

statements we report both ESRS prescribed

as well as own defined, entity specific metrics.

ESRS-prescribed metrics have been collated in

the metrics tables within the applicable chapters.

We remain committed to refining and enhancing

our metrics, enabling us to continually offer

accurate and relevant information to

our stakeholders.

Validation

The metrics in this report are not validated by

an external body. The Sustainability statements,

which include these metrics, are subject to limited

assurance by the assurance provider.

Currency presentation

In instances where metrics necessitate a

representation in currency, we adhere to the

Euro (€), the presentation currency utilized in

our Consolidated financial statements – ensuring

consistency and coherence across all financial

and sustainability disclosures.

Changes in targets and metrics

Any adjustments in targets or metrics are

documented, including the rationale behind the

changes, to ensure transparency and maintain

the integrity of our sustainability reporting.

Third party rating agencies disclaimers

We reference ESG ratings produced and

owned by independent ESG rating agencies

in the ‘ESG sustainability at a glance’ section.

The following agency-specific disclaimers are

required to accompany any such ratings.

Morningstar Sustainalytics

includes information and data provided by

Sustainalytics and/or its content providers.

Information provided by Sustainalytics is not

directed to or intended for use or distribution

to India-based clients or users and its

distribution to Indian resident individuals

or entities is not permitted. Morningstar/

Sustainalytics accepts no responsibility or

liability whatsoever for the actions of third

parties in this respect. Use of such data is

subject to conditions available at:

www.sustainalytics.com/legal-disclaimers

MSCI

MSCI ESG Ratings measure a company’s

resilience to long-term, industry-specific

sustainability risks using a rules-based

methodology. MSCI analysts research

and rate companies on a ‘AAA’ (leader) to

‘CCC’ (laggard) scale based on their exposure

to and management of these risks relative

to peers. MSCI Sustainability and Climate

measures, benchmarks and monitors,

sustainability and climate performance versus

peers across 10,000 + corporate issuers,

collecting thousands of data points for

each company. Learn more here:

www.msci.com/data-and-analytics/

sustainability-solutions/esg-ratings.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	144
General disclosures	Environmental	Social	Governance
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ESG sustainability governance

Our environmental, social and governance (ESG) sustainability governance model
			Supervisory Board
			•Supervises, monitors and advises the<br><br>Board of Management on ESG<br><br>sustainability aspects advised by the<br><br>ESG committee<br><br>•Identifies principal risks and opportunities
			Board of Management
			•Sets and oversees ESG sustainability<br><br>strategy<br><br>•Oversees execution
			ESG Sustainability team
			•Supports the Board of Management on<br><br>ESG sustainability aspects
Cross-functional collaboration
Energy<br><br>efficiency<br><br>and climate<br><br>action	Circular<br><br>economy	Attractive<br><br>workplace<br><br>for all	Responsible<br><br>value chain	Innovation<br><br>ecosystem	Valued<br><br>partner in our<br><br>communities	ESG<br><br>integrated<br><br>governance	Engaged<br><br>stakeholders	Transparent<br><br>reporting

ESG sustainability governance

Our integrated ESG sustainability governance

drives accountability and execution across

the company.

Our ESG sustainability governance model

includes the Supervisory Board (SB) advised

by the ESG committee, Board of Management

(BoM), ESG Sustainability team (led by the

Head of ESG Sustainability) and experts

from the business.

The role of the administrative,

management and supervisory bodies

The BoM and SB are considered our

administrative, management and

supervisory bodies. They do not include

workforce representatives.

knowledge and experience relevant to our business,

sustainability, product groups and geographic

locations in Corporate governance

Our BoM sets and oversees the execution

of ESG sustainability aspects in our

integrated business strategy, including

the IROs related to ESG sustainability that

arise from our DMA. It receives quarterly

updates on ESG sustainability and provides

guidance on relevant issues.

The SB monitors and advises the BoM

on ESG sustainability aspects relevant to

the company. This includes addressing the

principal risks and opportunities related

to the strategy.

The ESG Committee advises the SB in

carrying out its governance and oversight

responsibilities with regard to

sustainability matters.

Board report – Supervisory Board committees –

ESG Committee

All responsibilities are reflected in Rules

of Procedures, committee charters or other

formal documents.

Sustainability-related responsibilities

Our Chief Executive Officer (CEO), Christophe

Fouquet, is the BoM’s representative focusing

on ESG sustainability. Our Head of ESG

Sustainability is responsible, on behalf of

the BoM, for preparing and monitoring the

progress of the ESG sustainability strategy.

The ESG Progress Review Meeting,

comprising various participants including

the CEO and CFO, is the delegated body

responsible for oversight of impacts, risks

and opportunities. Meeting at least once

every two months, it reviews the progress

of our ESG sustainability strategy, including

related actions.

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ESG sustainability governance (continued)

The ESG Sustainability team supports the

BoM in relation to ESG sustainability and

makes recommendations to the BoM

regarding focus areas, targets, external

commitments and disclosures. Changes

in material topics, external inputs and new

insights are included in the recommendations

– ensuring insights and legislation are

effectively integrated into our

sustainability practices.

The ESG Sustainability team monitors risks

and opportunities including climate-change-

related matters, global trends, stakeholder

expectations and best practices that could

impact ASML’s short-, medium- and long-

term ESG sustainability objectives.

Identifying and assessing the impact of ESG

sustainability-related risks and opportunities

is an integral part of our enterprise risk

management (ERM) process and ensures we

take a holistic approach to risk management.

How we manage risk

Measuring our strategy’s effectiveness

We have established a set of key performance

indicators (KPIs), parameters and associated

targets. KPI and target development is a

collaborative process involving our ESG

Sustainability team, the business and

relevant internal and external stakeholders,

and is adopted by the BoM. The BoM has

also adopted the Climate Transition Plan.

A subset of the KPIs and progress against

targets is reviewed on a quarterly basis with

the BoM. The full set of targets is subject to

periodic review by business representatives

to discuss progress and actions if necessary.

Performance against key sustainability

metrics forms part of the long-term

incentive (LTI) plans of the BoM and senior

management. There is an annual update

of sustainability metrics, which currently

constitute 20% of the total LTI score.

Full detail on how sustainability has been

factored into the remuneration of the

BoM and SB is available in the

Remuneration report.

Remuneration report

Additionally, we revised the targets that

reached the end of their target period at the

end of 2025. For most of these topics we

have established new targets to maintain

our commitment and focus on our key

sustainability matters. Some targets, that

have been achieved, are discontinued. More

detail on these targets is included in the

‘Targets and performance’ sections of

the respective topics.

Industry cooperation

We increasingly cooperate across the

semiconductor industry with the aim of

reducing emissions across our value chain.

In practice, this means working with our

supplier base, customers and peers, both

directly and in cross-industry collaboration

platforms – such as the Semiconductor

Climate Consortium (SCC) – to address

energy efficiency and climate change issues

within the industry, increase transparency

and collaboration, and improve global

access to renewable electricity.

– Energy efficiency and climate action

Risk management and internal controls

We use various processes and methodologies

to govern our approach to sustainability

reporting, ensuring accuracy and reliability

in the information we have included.

Risks related to sustainability reporting

are part of our ERM framework and processes,

which entail a systematic approach to identify,

manage and monitor risks. This includes an

overview of the risks (the risk universe) that

may have a material adverse impact on our

ability to achieve our business objectives.

This approach enables us to leverage

existing controls and include new ones

related to sustainability reporting in our risk

and control framework. We use both top-

down (compliant reporting with applicable

sustainability disclosure requirements) and

bottom-up (accuracy of the content and data,

accuracy of estimation results, availability

and timing of data) approaches to help

ensure completeness of the continuously

evolving risk and control framework for

sustainability reporting. The maturity of

our internal control framework related to

sustainability reporting, is expected to

grow in the coming years.

The sustainability reporting risk and control

framework is reviewed annually, or during

the year for major changes impacting

sustainability reporting.

How we manage risk

Risk assessment

For our sustainability reporting we perform

a risk assessment in accordance with our

ERM risk prioritization methodology. This

considers risks such as compliant reporting

in accordance with applicable sustainability

disclosure requirements, the completeness

and accuracy of the content and data, the

accuracy of estimation results and the timing

and availability of the data.

Managing risks

For the identified sustainability reporting

risks, we define mitigation strategies to

reduce these to an acceptable level.

These measures and controls are included

in our sustainability reporting risk and

control framework.

Supporting our governance model

Our sustainability reporting governance

model is incorporated in the company

risk management governance structure

as explained in our ‘How we manage risk’

section. Findings of the risk assessment

and controls related to sustainability

reporting are assessed and discussed via

this governance structure, which includes:

•Board of Management

•Compliance, Ethics, Security and

Risk Committee

•Disclosure Committee

•Risk and Control Owners

How we manage risk

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	146
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG sustainability at a glance

We are focused on creating sustainable long-term value for all our stakeholders and shaping a sustainable future.

Our ESG sustainability strategy is based on the topics significant to our organization.

The strategic performance indicators on this page are monitored at Board level, underpinned by additional performance indicators which we report on in the following chapters/sections.

Key
	On track / achieved
	Off track / not achieved		Our vision is to enable groundbreaking technology to solve some of humanity’s toughest challenges
---		Our business strategy
---	---	---	---	---	---	---	---	---	---	---	---	---
	1	Deepen customer trust	2	Extend our technology and<br><br>holistic product leadership	3	Strengthen ecosystem<br><br>relationships	4	Create an exceptional<br><br>workplace	5	Drive operational<br><br>excellence	6	Deliver on ESG sustainability	Environmental	Read more on page 153 >	Social	Read more on page 210 >	Governance	Read more on page 261 >
---	---	---	---	---	---
We aim to help expand computing power while minimizing energy use, emissions and waste.<br><br>Our focus on energy efficiency and climate action – and on the circular economy –<br><br>is fundamental to achieving this goal.		We aim to deliver responsible growth that benefits all our stakeholders – providing an<br><br>attractive workplace for all, building a responsible value chain, fueling innovation in our<br><br>ecosystem and being a valued partner to communities.		We aim to act on our responsibilities and anchor them across our entire business through<br><br>integrated governance, engaged stakeholders and transparent reporting.				Description	Target	Performance
---	---	---	---	---
Energy<br><br>efficiency and<br><br>climate action	Net scope 1 and 2 CO2e emissions	GHG neutral by<br><br>2025	0 kt
	Gross scope 1 and 2 CO2e emissions	45 kt by 2025<br><br>(SBTi)	26 kt
	Net scope 3 CO2e emissions (Mt)	GHG neutral by<br><br>2040	11.5 Mt
	Scope 3 intensity in CO2e (per €m<br><br>gross profit)	0.93 kt by 2025<br><br>(SBTi)	0.67 kt
	Commitment from our top-80%<br><br>suppliers (based on CO2e emissions) to<br><br>reduce their CO2e footprint by 2030	75% commitment<br><br>from top 80%<br><br>suppliers by 2026	32%
	NXE energy use per wafer pass<br><br>(NXE:3800E, measured in 2025)	5.1 kWh by 2025	5.5 kWh
Circular<br><br>economy	Total waste from operations (excl.<br><br>construction and demolition waste)	N/A	15,258 t	N/A
	Reuse rate of parts returned from the<br><br>field and factory	90% by 2025	90%
	Recycling rate (excl. construction<br><br>and demolition waste)	65% by 2025	66%
	Waste generated per €m revenue (excl.<br><br>construction and demolition waste)	322 kg by 2025	467 kg
	Description	Target	Performance
---	---	---	---
Attractive<br><br>workplace<br><br>for all	Employee engagement score (three-<br><br>year rolling average)	>-2.0% vs. top<br><br>25% performing<br><br>companies by<br><br>2025	78.9%
			-2.3%
	Employee inclusion score (three-year<br><br>rolling average)	>-3.0% vs. top<br><br>25% performing<br><br>companies by<br><br>2025	80.2%
			-0.6%
	Attrition rate	<7.0% by 2025	4.1%
	Gender diversity: % inflow of women<br><br>(all job grades)	24% by 2025	29%
	Gender diversity: % inflow of women<br><br>to job grade 9+	24% by 2025	28%
	Gender diversity: % representation of<br><br>women in job grade 13+	14% by 2026	16%
Responsible<br><br>value chain	No 2025 strategic performance<br><br>indicator	N/A	N/A
Innovation<br><br>ecosystem	Research and development1	>€4.0bn by 2025	4.7bn
Valued partner<br><br>in our<br><br>communities	Amount invested in communities (per<br><br>employee), including employee giving	€2,500/<br><br>employee by<br><br>2025	1,750

All values are in Euros.

		Description	Target	Performance
Integrated<br><br>governance		No 2025 strategic performance indicator	N/A	N/A
Engaged<br><br>stakeholders		Combined ranking on four ratings listed<br><br>below – ambition to rate above average.	N/A	N/A
Transparent<br><br>reporting		No 2025 strategic performance indicator	N/A	N/A
	External recognition of our sustainability performance2<br><br>Our leading performance in sustainability has been recognized by assessments and external<br><br>corporate ratings. ESG benchmarks and rating agencies give us objective insights into our<br><br>performance and how we compare with industry peers. We focus on benchmarks that in our<br><br>view are: recognized by our stakeholders, that are the most relevant in helping us drive<br><br>continuous improvement, and that rely mostly on publicly available information.<br><br>Sustainalytics<br><br>As of July 2025, we received an ESG Risk Rating of 8.9 from Morningstar Sustainalytics and were<br><br>assessed to be at negligible risk of experiencing material financial impacts from ESG factors.3<br><br>MSCI ESG Rating<br><br>As of December 23, 2025, we received an MSCI ESG Rating of AAA (‘leader’). MSCI ESG<br><br>Ratings measure a company’s resilience to long-term, industry-specific sustainability risks.<br><br>CDP<br><br>As of December 2025, we received a score of A from CDP in relation to climate.<br><br>Responsible Business Alliance<br><br>Based on RBA’s Self-Assessment Questionnaire, we are assessed ‘low risk’ throughout 2025.

1.Read more in Strategic report – Our business – Our business strategy – Extend our technology and holistic product leadership

2.For additional information related to ‘Third party rating agencies disclaimers’ we refer to the Basis for preparation.

3.In no event the Sustainalytics and other rating shall be construed as investment advice or expert opinion as defined by applicable legislation. The information contained or reflected herein is not directed to or intended for use or distribution to India-based clients or users and its distribution

to Indian resident individuals or entities is not permitted, and Morningstar/Sustainalytics accepts no responsibility or liability whatsoever for the actions of third parties in this respect.

Value chain and ecosystem overview_v4.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Value chain and ecosystem overview

This overview is a non-exhaustive illustration of some of the activities, resources and relationships related to our business model and the external environment in

which we operate.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Environmental and human rights due diligence

Environmental and human rights

due diligence

Our environmental and human rights due

diligence process serves as a cornerstone

in assessing the potential and actual impacts

associated with our business operations –

including impacts we cause through our

operations, those we have contributed to in

business relationships, and those linked to

our activities, products or services by a third

party or other actors across our value chain.

The process allows us to prioritize actions

based on the severity and likelihood of the

impacts, thereby informing the assessment

of material impacts.

Due diligence is an ongoing practice

through which we dynamically respond to

– and potentially instigate alterations in –

our business strategy, model and various

operational contexts.

Its core elements are described in this

Annual Report:

•Embedding due diligence in our

governance, strategy and business model.

•Engaging with affected stakeholders.

•Identifying and assessing adverse impacts.

•Taking action to address adverse impacts.

•Tracking and communicating the

effectiveness of our efforts.

We are dedicated to respecting human

rights and protecting the environment across

our value chain, and strive for transparency,

positive contributions, and prevention and

mitigation of adverse impacts. We have a

number of policies that define commitments,

principles and governance for specific

aspects of environmental and human rights

due diligence, including our Code of

Conduct, our Human Rights Policy and the

Responsible Business Alliance (RBA) Code of

Conduct. Through these, we actively support

the principles laid down in international

human rights and environmental instruments.

Through implementation of internationally

recognized standards for human rights and

environmental due diligence we prepare for

the implementation of legislation like the

EU Corporate Sustainability Due Diligence

Directive (CSDDD). We will continue to

monitor (legislative) developments in the

area of due diligence.

How we manage environmental

and human rights protection

To both support and help drive our

environmental and human rights due

diligence, we are deploying programs and

activities across various themes in our ESG

sustainability strategy, including Attractive

workplace for all and Responsible value chain.

These include our Human Rights program,

supplier risk assessments and due diligence

via the RBA – covering both environmental

and social risks, inclusion and diversity

initiatives and employee well-being programs.

Alongside efforts to further embed integrity

throughout our culture, they contribute to the

promotion of environmental and human rights

protection within our own operations and

across our value chain.

Human Rights program

We have developed a Human Rights program

defining how we identify, prevent, mitigate

and account for actual and potential human

rights impacts in our operations and value

chain. A cross-functional Human Rights

Committee, chaired by the Head of Ethics

& Business Integrity and Human Rights,

oversees and advises on human rights matters,

drives the implementation of the program,

supports responses to human rights impacts

and ensures alignment of human-rights-

related issues across the organization.

In 2025, we built on the outcomes of

our 2023-2024 saliency assessment by

developing our Human Rights Roadmap –

outlining the goals, timelines and governance

structure of our Human Rights program.

Focus areas include:

•Developing tailored training, communication

and awareness campaigns.

•Developing global guidance on salient

labor topics.

•Conducting in-depth evaluations of salient

human rights topics.

•Addressing identified high-risk issues.

•Improving ways of obtaining meaningful

stakeholder feedback.

•Enhancing our existing grievance

mechanism – our Speak Up Service – to

meet the effectiveness criteria described

in Article 31 of the United Nations Guiding

Principles on Business and Human

Rights (UNGPs).

In addition, we are implementing specific

due diligence initiatives and activities to

manage human rights risks in both our

own operations and our supply chain.

Attractive workplace for all and Sustainability

statements – Social – Responsible value chain

We are a member of the United Nations

Global Compact (UNGC) and annually

submit our Communication on Progress.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Environmental and human rights due diligence (continued)

Remediation and grievance mechanism

We are committed to conducting due

diligence in order to prevent our activities

from causing or contributing to adverse

impacts on human rights, and to ensure

we do not engage in human rights abuses

in any way. We aim to provide effective

remedies to affected rights holders where

an impact has been identified and confirmed.

Our global Speak Up Service is available to

our own employees, on-site external workers,

workers across our value chain, people in

affected communities, and any other

individual impacted by our operations.

In 2025, we received 111 grievances

about human rights concerns. Fifteen

were substantiated and related to diversity,

work-life balance, health and safety,

harassment, discrimination, privacy,

and secure employment.

All grievances are subject to prompt

investigation, with progress and outcomes

communicated to the complainant. When

grievances are substantiated, we take

appropriate actions, such as issuing formal

apologies and committing to remedy,

enhancing oversight of working hours

to protect work-life balance, respectful

workplace coaching, implementing

consistent and proportionate disciplinary

measures, and ensuring employment

contract execution to prevent, mitigate,

or bring the impact to an end.

We strive to apply lessons learned and

continue to address the most common

issues identified through our grievance

mechanism, such as the risk of harassment

and discrimination, by embedding these

topics in our awareness programs and Code

of Conduct and associated training to help

prevent future incidents.

Our global employee networks offer a

platform to raise and discuss shared

concerns, including inequality and

harassment, while our Ignite Inclusion and

Inclusive Leaders programs provide targeted

training to foster a more inclusive workplace.

Governance – ESG integrated governance –

Responsible business conduct and compliance

and Sustainability statements – Social – Attractive

workplace for all

Resources

We dedicated four FTEs to teams working

on the environmental and human rights

due diligence, including our Human

Rights program.

Looking ahead

We intend to update our Human Rights

Policy on a continuous basis to reaffirm our

commitment to environmental and human

rights protection and outline our evolving

approach to due diligence. As part of this

process, we are gathering feedback from

a wide range of stakeholders – including

external experts, NGOs, civil society

organizations, and internal functional

experts and underrepresented groups.

To raise awareness and further strengthen

our practices, we aim to provide

comprehensive training to all employees.

This includes mandatory and voluntary

components, including on the Human Rights

Policy, enhanced Ethics, Code of Conduct

and Speak Up Service, and modules on

broader topics. We aim to make role-specific

training available for relevant functional

areas. Additionally, we plan to improve

communication about our grievance channels

– especially for vulnerable groups like on-

site external workers and local communities

– and enhance our processes for managing

human-rights-related cases.

To better identify and address risks to

employees, we expect to conduct further

evaluation of human rights risks within our

operations and implement targeted actions

to remedy any identified gaps. We also

seek to align our environmental due

diligence practices with evolving regulatory

requirements and stakeholder expectations,

with a focus on risk assessment

and mitigation.

Human rights
The provisions of our Human Rights<br><br>Policy are derived from key international<br><br>human rights standards including the<br><br>International Labor Organization (ILO)<br><br>Declaration on Fundamental Principles<br><br>and Rights at Work and the UN Declaration<br><br>of Human Rights, the UNGC, the principles<br><br>specified in the Economic Co-operation<br><br>and Development (OECD) Guidelines for<br><br>Multinational Enterprises, and other relevant<br><br>standards such as the UN Women’s<br><br>Empowerment Principles, UNICEF’s<br><br>Children’s Rights and Business Principles<br><br>and the UN International Convention on<br><br>the Protection of the Rights of All Migrant<br><br>Workers and Members of Their Families.<br><br>Our Human Rights Policy explicitly specifies<br><br>our commitments to non-discrimination and<br><br>harassment, as well as the prevention of<br><br>trafficking in human beings, forced labor,<br><br>and child labor.<br><br>Our Human Rights Policy is a key part of<br><br>our ESG strategy, setting out our roadmap<br><br>and initiatives toward effectively and<br><br>responsibly managing areas of human<br><br>rights impacts in the ecosystem where<br><br>we operate.
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---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management

Our material ESG sustainability topics

How we identified our material topics

How we manage our impact

We believe acting sustainably as a business

benefits everyone. To grow our company and

increase our positive impact, while

minimizing our negative impacts on the

environment and people, we aim to focus

on the ESG sustainability topics where we

have the biggest impact – so-called material

topics, which we pinpoint by completing

an annual DMA as an integral part of our

ESG sustainability strategy process. These

include our most significant impacts to the

environment and people, as well as the most

significant sustainability-related risks and

opportunities affecting our value drivers,

competitive position and long-term

shareholder value creation.

The DMA also incorporates potential negative

impacts on our employees, workers across

our value chain and affected communities,

as identified by our 2023–2024 saliency

assessment. In relation to biodiversity and

ecosystems, we have identified and assessed

IROs linked to our own site locations,

communities and our upstream (focused

on direct suppliers) and downstream value

chain. No IROs were identified as material.

In 2026 a deep-dive assessment will be

conducted to better understand our broader

environmental (including biodiversity) impacts,

dependencies, risks (including physical,

transition and systemic risks) and opportunities

beyond our direct suppliers, as well as potential

necessary implementation of biodiversity

mitigation measures. We have sites located

in or near biodiversity-sensitive areas, which

includes our main campus in Veldhoven.

The process to identify, assess, and manage impacts,

risks and opportunities (IROs) remained essentially

unchanged from the previous reporting period.

However, the DMA was updated to reflect significant

organizational and operational changes and shifts in

key suppliers and customers, if any, and to

incorporate updated regulatory guidance, new

scientific insights, due diligence outcomes, peer

benchmarks and stakeholder feedback. No new

material topics were identified. In line with our prior

year commitment, we have integrated the outcomes of

the 2024 human rights saliency assessment into the

DMA and have further developed the language we use

to describe our material impacts, risks and

opportunities. As part of this development, the current

set of IROs has undergone editorial refinements

compared to the prior year, adjustments to the level of

aggregation, clarifications of descriptions, and better

pinpointing of specific impacts and risks based on

experience from our first year of ESRS reporting.

Additionally, risks have been further aligned with the

ASML risk universe, which resulted in updates to

descriptions and time horizons. Below we describe

our detailed process.

Step 1:

Understanding context

Stakeholders that are or could be affected by

ASML, as well as those that affect or could affect

ASML, are central to the materiality assessment.

We continuously engage with our five main stakeholder

groups – customers, employees, suppliers (including

contractors), shareholders and society – to understand

the topics of interest to them and how they may be

impacted. This includes, for example, regular meetings,

surveys, supplier days and investor dialogue. In

addition, we consider business relationships, relevant

legal and regulatory developments, industry studies,

knowledge from internal and external subject matter

experts, and ESG benchmarks. These support the

identification of relevant sustainability matters, impacts,

risks and opportunities considered in the materiality

assessment – as well as the collection of insights for

improvement actions and feedback on strategy,

performance and progress.

Step 2:

Determining potentially relevant

sustainability matters

We monitor the sustainability context of our activities

and business relationships by reviewing relevant

sources of information about our industry and peers,

international standards and (upcoming) legislation,

media and selected ESG rating agencies. Based on

these analyses, insights from stakeholder engagement,

and internal impact and risk assessments, an initial list

of potential material sustainability matters is drafted.

Step 3:

Identifying impacts, risks

and opportunities

We define IROs related to each of the potential

material sustainability matters identified. Impacts include

positive and negative, actual and potential, and short-,

medium- and long-term impacts from our activities on

the environment, society and the economy (based on our

strategy and business model), our business relations and

geographies, across our value chain. To identify risks and

opportunities, we consider our ASML risk universe and

engage with internal stakeholders and experts. Risks and

opportunities relate to our ability to continue to use or

obtain the resources needed in our business processes,

assets and other relevant activities across our value chain,

and our ability to rely on relationships needed in business

processes on acceptable terms. They may pertain to

financial capital, manufactured capital, intellectual capital,

human capital, social and relationship capital, and natural

capital. In the process of identifying material climate-

related impacts, we consider our current and locked-in

GHG emissions as well as potential future emissions

in our own operations and across the value chain.

For the identification of material climate-related risks

and opportunities, we consider the outcomes of our

climate resilience analysis.

Step 4:

Assessing the materiality of impacts

(impact materiality)

We assess the materiality of negative impacts based

on scale, scope, irremediable character (also referred

to as severity) and, in case of potential impacts, likelihood.

Similarly, the materiality of positive impacts is assessed

based on scale, scope and likelihood. For potential

negative impacts related to human rights, severity takes

precedence over likelihood. We perform our assessments

for both severity and likelihood using 5-point scales. In

our latest DMA we have updated our scoring methodology

so that both our impact scoring and risk scoring are

better aligned. This has also led to an update of the

applied materiality threshold scores. However both

changes in scoring methodology and materiality threshold

did not have any impact on the materiality outcome of

individual IROs. The assessment of the impacts is

completed by the ESG Sustainability team and reviewed

and validated with relevant internal stakeholders.

Step 5:

Assessing the materiality of risks and

opportunities (financial materiality)

We assess our risks and opportunities based on

the magnitude of financial effects and likelihood.

Magnitude considers effects on the ability to continue

to use resources, including access, availability and prices,

and our ability to continue to rely on relationships –

considering reputational effects and potential actions

by stakeholders in the short, medium and long term.

Likelihood reflects the probability a risk or opportunity

will occur. In our DMA, only sustainability-related risks

and opportunities are taken into consideration.

We review our ASML risk universe with the ESG

Sustainability team, internal subject matter experts

and risk team to identify and assess sustainability-

related risks. If we identify new risks, we align with the

risk team to evaluate whether they need to be added

to our risk universe. We perform our assessments for

both magnitude and likelihood using 5-point scales.

The assessment of opportunities is completed by

the ESG Sustainability team and reviewed and

validated with relevant internal stakeholders,

finance and risk teams.

Step 6:

Deciding on thresholds for materiality

The assessments initially performed using 5-point

scales for severity, magnitude and likelihood result in

a combined materiality score of low, medium or high

for each impact, risk and opportunity (IRO). Thresholds

are determined separately for negative impacts,

positive impacts, risks and opportunities. Only those

with a score of medium or high are considered material.

To provide an overview of material sustainability

matters, impacts, risks and opportunities are clustered

into material sustainability matters. Sustainability

matters may be material from the impact perspective,

the financial perspective, or both.

Step 7:

Assessing strategic implications

The outcomes of the materiality assessment

have been presented to and approved by

our BoM, and serve as the basis for the ESG

sustainability strategy. Material ESG sustainability

matters are linked to themes in the strategy and

the relevant value drivers for each. If new material

IROs are identified, they are added to the strategy

and DMA, and also included in our risk inventory

and managed in line with our ERM framework.

We define measures to manage each material

sustainability matter, including policies, action

plans, metrics and targets. These are disclosed

under the respective environmental, social and

governance sections – where we describe our

policies on how we manage the IROs, actions

we take to address them, and the related

targets and metrics.

Engaged stakeholders

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General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

The table below shows the material IROs identified through our DMA.

They are linked to our ESG strategy themes, indicating whether these impacts are positive or negative,

actual or potential, and where in the value chain they occur.

Environmental topics	Before suppliers	Actual positive impact	Risk	Short term
Social topics	Suppliers	Potential positive impact	Opportunity	Medium term
Governance topics	Own operations	Actual negative impact		Long term
Entity specific topics	Customers	Potential negative impact
	Beyond customers

ESG strategy theme	Description	Value chain	Impact<br><br>materiality	Financial<br><br>materiality	Time<br><br>frame
Energy efficiency<br><br>and climate action<br><br><br><br><br><br>Read more on page 154 >	Energy use and GHG emissions from manufacturing and buildings (scope 1 and 2)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Impact on energy availability and the grid through our manufacturing and buildings	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Impact on global warming through GHG emissions from the use of products and services sold by ASML, taking into account energy efficiency measures in products (scope 3 – category 11)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Impact on global warming through GHG emissions from the transportation and distribution services purchased by ASML (scope 3 – category 4)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Impact on global warming through GHG emissions from goods and services purchased (including capital goods) by ASML (scope 3 – categories 1 and 2)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Impact on global warming through energy use and GHG-emissions of business travel and commuting (scope 3 – categories 6 and 7)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Energy use and GHG emissions from the integral production process of our customers’ products (microchips) and their use in various applications (in ICT industry and broader society)1	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Reduction of energy use and GHG emissions from use of our customers’ products (microchips) and their use in various applications (in ICT industry and broader society)1	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Financial opportunity for ASML due to increased market demand for low-carbon technologies (climate resilience analysis)2	<br><br><br><br><br><br><br><br>		<br><br>	<br><br><br><br>
	Acute and chronic physical climate change risks to ASML and our customers (climate resilience analysis)2	<br><br><br><br><br><br><br><br>			<br><br>
	Transition risks related to climate change (including technology, regulation, reputation and market risks) (climate resilience analysis)2	<br><br><br><br><br><br><br><br>			<br><br><br><br>
Circular economy<br><br><br><br><br><br>Read more on page 188 >	Non-renewable resource inflows and outflows (Systems, parts and tools, transport materials)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Waste streams from our own operations and building renovation and construction activities (Systems, parts and tools, transport materials, non-product-related waste, real estate)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Supply chain disruptions caused by unavailability of materials and parts, including as a result of non-compliance with rules and regulations regarding hazardous substances (Systems,<br><br>parts and tools, transport materials)2	<br><br><br><br><br><br><br><br>			<br><br><br><br>
	Customer dissatisfaction and complaints due to not meeting agreed circular economy standards (Systems, parts and tools, transport materials)2	<br><br><br><br><br><br><br><br>			<br><br><br><br>
Attractive workplace<br><br>for all<br><br><br><br><br><br>Read more on page 211 >	Impact on employees by providing fair labor conditions and associated risk of (perception of) unfair working and employment conditions at ASML, affecting ability to engage and retain<br><br>talent (Labor conditions)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Impact on employees by facilitating knowledge and skills development which contribute to continued employability and professional growth, and associated risk of failure to attract,<br><br>develop and retain talents with adequate skills and knowledge (Learning and development)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Potential impact in case of failure to effectively manage employees’ well-being and work-life balance, including excessive overtime, resulting in stress, health issues and increased<br><br>likelihood of accidents, and associated risk of failure to engage and retain talent (Well-being)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Potential impact on workers in case of failure to manage occupational health and safety, and associated risk in case this impact materializes (Occupational health and safety)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Potential impact on workers’ right to freedom of association, collective bargaining and social dialogue in certain regions (Labor conditions)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Potential impact on workers as a result of discrimination and unequal treatment, including pay inequality, as well as violence and harassment in the workplace (Inclusion and diversity)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>		<br><br><br><br>
	Failure to comply with health- and safety-related regulations or implement effective health and safety practices could result in liabilities and reputational risk (Occupational health and safety)2	<br><br><br><br><br><br><br><br>			<br><br><br><br>
	Failure to comply with labor law could lead to sanctions, financial loss or reputational damage (Labor conditions)2	<br><br><br><br><br><br><br><br>			<br><br><br><br>
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---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

Environmental topics	Before suppliers	Actual positive impact	Risk	Short term
Social topics	Suppliers	Potential positive impact	Opportunity	Medium term
Governance topics	Own operations	Actual negative impact		Long term
Entity specific topics	Customers	Potential negative impact
	Beyond customers

ESG strategy	Description	Value chain	Impact<br><br>materiality	Time<br><br>frame
Responsible value<br><br>chain<br><br><br><br><br><br><br><br>Read more on page 237 >	Potential impact on the health and safety of customer and partner employees while working on ASML systems, and associated risk if the impact materializes (Responsible product design)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Potential impacts on human rights of supply chain workers in on-site facility services, electronics manufacturing and mining of minerals (Responsible supply chain)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Failure to comply with rules and regulations regarding conflict minerals (Responsible supply chain)	<br><br><br><br><br><br><br><br>		<br><br><br><br>
	Potential impacts on human rights of workers at customers and beyond inherent to the technology sector (Responsible product use)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Improved quality of life through access to technology and digital services (Responsible product use)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Potential impacts on society due to potential misuse of technology (Responsible product use)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
Innovation ecosystem<br><br><br><br>Read more on page 246 >	Impact on society and stakeholders through ASML’s innovation ecosystem focused on ESG-related research, startups, scaleups, platforms and collaboration (ESG innovation)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
Valued partner in<br><br>our communities<br><br><br><br><br><br>Read more on page 251 >	Impact on local communities around ASML’s offices and factories through pressure on regional mobility, and impact on local communities around our Veldhoven operations through<br><br>nuisance, pressure on affordable housing and interaction between cultures (Attractive communities)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Impact on local communities around our Veldhoven operations through pressure on the talent pipeline and education system (Inclusive communities)	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Risk of an unattractive community for future employees to live in (limited housing, social cohesion issues), impacting ASML’s ability to attract talent (Attractive communities, Inclusive communities)	<br><br><br><br><br><br><br><br>		<br><br><br><br>
	Adverse reactions from neighbors, local communities and municipalities due to the pressure from ASML on infrastructure, availability of talent, schools, housing and social cohesion,<br><br>which can impact the license to effectively manage our business (Attractive communities, Inclusive communities)	<br><br><br><br><br><br><br><br>		<br><br><br><br>
ESG integrated<br><br>governance<br><br><br><br><br><br>Read more on page 262 >	Impact on people and environment across the supply chain through the fair management of relationships with suppliers (Responsible business conduct and compliance)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
	Failure to comply with laws and regulations for supply chain due diligence (Responsible business conduct and compliance)2	<br><br><br><br><br><br><br><br>		<br><br><br><br>
	Failure to comply with data privacy regulations or breaches of data privacy (Responsible business conduct and compliance)2	<br><br><br><br><br><br><br><br>		<br><br><br><br>
	Potential impact on stakeholders and associated risk in case ASML workers fail to comply with ASML’s code of conduct, policies and values, as well as with regulations due to<br><br>increasing complexity as we expand into more countries (Responsible business conduct and compliance)2	<br><br><br><br><br><br><br><br>	<br><br><br><br><br><br>	<br><br><br><br>
Engaged stakeholders<br><br><br><br>Read more on page 44 >	Failure to engage customers and suppliers on environmental and social topics (ESG risk management)2	<br><br><br><br><br><br><br><br>		<br><br><br><br>

1.Indirectly, we track the effectiveness of our related policies through the processes we have in place to make our machines more (energy) efficient and reduce the energy use per wafer pass. In collaboration with the industry, we aim to have a better understanding of the GHG emissions

caused by the use of our customers’ products and, where possible, we aim to contribute to reducing the negative environmental impacts related to the use of these products.

These IROs are currently not covered by (quantitative) targets. The effectiveness of policies and actions in relation to these IROs are tracked by ASML. Risks are covered within ASML's risk universe where specified risks are included. Policies and actions are therefore tracked through

the ASML ERM framework. Where available, additional qualitative and/or quantitative indicators have been used to monitor progress related to these impacts, risks and opportunities.

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General disclosures	Environmental	Social	Governance
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Environmental at a glance

Our ambition
We aim to help expand<br><br>computing power while<br><br>minimizing energy use,<br><br>emissions and waste.<br><br>Our focus on energy<br><br>efficiency and climate<br><br>action – and on the<br><br>circular economy –<br><br>is fundamental to<br><br>achieving this goal.
On the following pages we set out our<br><br>approach and progress to date.

Energy efficiency and climate action
	We aim to reduce our climate impacts,<br><br>working closely with our partners and peers<br><br>in the entire semiconductor value chain –<br><br>in our own operations, together with our<br><br>suppliers, in our customers’ production<br><br>processes and through reducing the energy<br><br>used by semiconductors in operation by<br><br>enabling scaling.<br><br>We aim to be greenhouse gas neutral<br><br>across our value chain by 2040.<br><br>Read more on page 154 >	We’ll do this by focusing on the<br><br>following sub-topics:
		•Manufacturing and buildings<br><br>•Purchased goods and services<br><br>•Logistics<br><br>•Business travel<br><br>•Employee commuting<br><br>•Product use
		We also report on our resilience analysis<br><br>of our strategy and business model in<br><br>relation to climate change, using a<br><br>climate scenario analysis.
		Read more on page 183 >	Climate Transition Plan
---
Our Climate Transition Plan is our strategic<br><br>roadmap that underpins our ambition to<br><br>align with the goals of the Paris Agreement.<br><br>With our SBTi-validated emission reduction<br><br>targets, we commit to taking ambitious<br><br>action by driving our Climate Transition<br><br>Plan in each of the emission categories.
Read more on page 156 >
Circular economy
---
We aim to minimize resource inflows and<br><br>waste outflows, to generate business value<br><br>and avoid negative impacts on the planet.<br><br>We aim to have zero waste from our<br><br>operations to landfill and incineration<br><br>by 2030.<br><br>Read more on page 188 >
We’ll do this by focusing on the<br><br>following sub-topics:<br><br>•Systems<br><br>•Parts and tools<br><br>•Transport materials<br><br>•Non-product-related waste<br><br>(hazardous and non-hazardous)<br><br>•Real estate
EU Taxonomy at ASML
---
In our EU Taxonomy disclosure we have<br><br>classified our environmentally sustainable<br><br>economic activities and investments,<br><br>and report the related economic key<br><br>performance indicators of turnover, capital<br><br>expenditure and operational expenditure.<br><br>We report on the alignment assessment<br><br>of our eligible economic activities and on<br><br>ASML meeting the minimum safeguards<br><br>constituted chiefly by the OECD Guidelines<br><br>and UN Guiding Principles.
Read more on page 203 >

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Energy efficiency and climate action

We aim to be greenhouse gas neutral across our value chain by 2040

Why it matters

...for the planet

The world is turning to technology to help solve some of its most pressing challenges. We provide innovative lithography solutions for producing microchips that help society reduce global energy use and mitigate GHG emissions.1 At the same time, growing demand for enhanced chip functionality means the complexity and energy consumption of microchip patterning is increasing. Limiting global warming to 1.5°C, in line with the Paris Agreement, therefore needs accelerated and increased action. 1. To clearly demarcate the scope of our policy on energy efficiency and climate action, please note that ‘climate action’ is defined as mitigation of GHG emissions. Within our policy, we refer to emissions as GHG emissions – and, of these, CO2 emissions are most material to ASML.

...for ASML
Our goal is to expand the availability of computing power and data storage<br><br>capability while reducing the environmental impact of our operations, our<br><br>supply chain and the use of our products, in line with increasing customer<br><br>requests for improved energy efficiency and evolving societal expectations<br><br>for climate action.<br><br>To mitigate our negative climate impacts – mainly those from our products’<br><br>energy consumption and emissions from sourcing and supply chain activities<br><br>– we are aiming for GHG neutrality across our entire value chain by 2040,<br><br>while closely working with our suppliers and customers to limit the increase<br><br>of energy demand for producing, shipping and operating our systems. Our<br><br>approach therefore also contributes to our customers’ and suppliers’ own<br><br>ESG sustainability objectives and encourages collaboration to exchange<br><br>experience and reduce emissions. ESG sustainability is also a key driver<br><br>of both employee engagement and our ability to attract new talent.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Net scope 1 and 2<br><br>CO2e emissions	Gross scope 1 and 2<br><br>CO2e emissions
0 kt	26 kt
2024: 33 kt	2024: 33 kt
2025 target: GHG neutral	2025 SBTi target: 45 kt
Net scope 3<br><br>CO2e emissions	Scope 3 intensity in CO2e<br><br>(per €m gross profit)
11.5 Mt	0.67 kt
2024: 12.0 Mt	2024: 0.83 kt
2040 target: GHG neutral	2025 SBTi target: 0.93 kt
Commitment from<br><br>top-80% suppliers<br><br>(based on CO2e emissions)<br><br>to reduce their CO2e<br><br>footprint by 2030	NXE energy use per<br><br>wafer pass<br><br>(NXE:3800E, measured<br><br>in 2025)
32%	5.5 kWh
2024: 17%	2024: 5.9 kwh
2026 target: 75%	2025 target: 5.1kWh

Our sub-topics

Manufacturing<br><br>and buildings	Purchased goods<br><br>and services	Logistics	Business travel	Employee<br><br>commuting	Product use

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Energy efficiency and climate action (continued)

Key
	Actual positive impact	Risk
	Potential positive impact	Opportunity
	Actual negative impact
	Potential negative impact

Our material impacts, risks and opportunities relating to Energy efficiency and climate action.

| Upstream | Own operations | Downstream | | --- | --- | --- || Whole value chain | | | --- | --- | | | Transition risks related to climate change (including technology, regulation, reputation and market risks) (climate resilience analysis) || Impact on global warming through GHG emissions from the transportation and distribution services purchased by ASML (scope 3 – category 4) | | --- | | Impact on global warming through GHG emissions from goods and services purchased (including capital goods) by ASML (scope 3 – categories 1 and 2) || Energy use and GHG emissions from manufacturing and buildings (scope 1 and 2) | | --- | | Impact on energy availability and the grid through our manufacturing and buildings | | Impact on global warming through energy use and GHG- emissions of business travel and commuting (scope 3 – categories 6 and 7) | | Financial opportunity for ASML due to increased market demand for low-carbon technologies (climate resilience analysis) || Impact on global warming through GHG emissions from the use of products and services sold by ASML, taking into account energy efficiency measures in products (scope 3 – category 11) | | --- | | Energy use and GHG emissions from the integral production process of our customers’ products (microchips) and their use in various applications (in ICT industry and broader society) | | Reduction of energy use and GHG emissions from use of our customers’ products (microchips) and their use in various applications (in ICT industry and broader society) || Acute and chronic physical climate change risks to ASML and our customers (climate resilience analysis) | | --- | | STRATEGIC REPORT | CORPORATE GOVERNANCE | SUSTAINABILITY | FINANCIALS | ASML Annual Report 2025 | 156 | | --- | --- | --- | --- | --- | --- | | General disclosures | Environmental | Social | Governance | | --- | --- | --- | --- |

How we are managing energy efficiency and climate action: Our Climate Transition Plan

Introduction

Climate change is a global challenge

requiring urgent action from all stakeholders.

We have been developing and enhancing

our climate strategy for many years, both

internally in our operations and externally

with our value chain partners. Following

three consecutive successful energy savings

master plans, we are implementing our

fourth five-year energy savings master plan

to further reduce emissions from our own

facilities and increase our use of renewable

electricity. We are also collaborating with

suppliers to reduce our supply chain’s carbon

footprint, and are making our products more

energy-efficient through R&D.

Our Climate Transition Plan is our strategic

roadmap underpinning our ambition to align

with the goals of the Paris Agreement –

which states that, to keep global warming

below 1.5°C, GHG emissions need to be

reduced by 45% by 2030 and reach net zero

by 2050. However, according to the latest

climate science, the 1.5°C target is slowly

getting out of reach. Recognizing this

urgency, we continue to aim for GHG

neutrality across our value chain by 2040.

Our actions focus on three improvement levers:

reducing energy use; using renewable energy;

and compensating for residual emissions.

To deliver on our ambitions, our Climate

Transition Plan is embedded in our business

strategy – responsibility for its execution lies

with the business. The concrete actions

executed in the past and toward the future,

as described in this plan, are determined in

collaboration between our ESG Sustainability

team and the business.

To ensure sufficient resources are allocated

in a timely manner throughout the business,

the actions of our Climate Transition Plan

are also embedded in our financial planning

cycles – with implementation strengthened

by an internal carbon price.

The BoM has adopted the Climate Transition

Plan, which was also discussed with the ESG

Committee and reported on to the

Supervisory Board.

We are committed to updating our Climate

Transition Plan on an annual basis to ensure

assumptions and projections are reasonable

in view of the latest information. We welcome

stakeholder feedback to enable us to further

increase the effectiveness of our actions

and communication.

ASML’s climate targets validated by SBTi

In 2025, the Science Based Targets initiative (SBTi) officially validated both ASML’s near-term (2030) and long-term (2040) gross emission targets that support our path to GHG neutrality. The SBTi's Corporate Net-Zero Standard is the world’s pre-eminent framework for corporate target-setting in line with climate science. It includes the guidance, criteria and recommendations for companies to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C. According to SBTi, the aim is to roughly halve absolute scope 1 and 2 emissions by 2030, while in the longer term companies must cut all possible emissions before 2050. For scope 3 emissions, either an absolute path to -90% or an emission intensity path to -97% can be chosen. We have opted for an emission intensity pathway toward -97% by 2040 compared to base year 2019, and have defined our emission intensity as CO2e emissions per €m gross profit (in accordance with US GAAP).

The manufacturing of semiconductors requires significant energy, with electricity consumption the biggest source of our industry’s GHG emissions. A challenge for the industry is to grow to meet demand, while at the same time reducing emissions. ASML’s role here is important, and the validation by SBTi of our gross scope 1 and 2 and intensity scope 3 GHG targets means our targets meet rigorous criteria and are consistent with the latest climate science.

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How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

Aiming for GHG neutrality by 2040

In 2021, we presented our roadmap to

GHG neutrality across the value chain by

We defined targets for each of the

material categories related to energy efficiency

and climate action. Definitions have been

updated in line with the European Sustainability

Reporting Standards (ESRS), and gross

reduction targets will be presented in the

following sections to explain how we aim

to maximize our emission reduction activities

to achieve our ambitions by 2040.

The diagram to the left illustrates our journey

to GHG neutrality across our value chain by

2040 for our most material emission

categories.

We define GHG neutrality as having our

remaining emissions – following efforts

to reach our gross GHG emission reduction

targets – compensated for by the same

amount of tonnes (metric tons) of carbon

credits, verified against recognized quality

standards.

We acknowledge that, to successfully achieve

our targets, we need to work closely together

with our customers, suppliers and other

partners in our ecosystem. We have already

intensified collaboration across the industry

value chain and will continue on this path to

drive ambitious climate action in our industry.

As we aim to be GHG neutral across our

value chain by 2040, we have established

the following targets:

•Become GHG neutral for scope 1

and 2 emissions, and scope 3

emissions from business travel and

commuting by 2025.

Since 2019, we have reduced our scope 1

and 2 emissions from our manufacturing

and buildings from 60 kt to 26 kt, and

we have reduced our emissions from

business travel and commuting (scope 3

categories 6 and 7) from 139 kt to 78 kt.

The residual emissions for each of these

categories in scope 1, 2 and 3 have been

compensated for, meaning we have

achieved our 2025 GHG neutrality target.

•Become GHG neutral for scope 3

emissions from supply chain

by 2030.

•Become GHG neutral for scope 3

emissions from product use by 2040.

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How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

Levers for action

We aim to achieve our emission

targets by working on three

improvement levers:

1. Reducing energy use

Through our energy efficiency strategy, we

aim to minimize energy demand across our

value chain by taking the following steps:

•Analyze: Understand energy use and

GHG emissions to identify focus areas

and opportunities to improve (as an

enabler for other steps).

•Minimize: Minimize the amount of

energy consumed across our value

chain. We do this by:

•Improving processes to require

less energy.

•Improving energy efficiency of

equipment, both by selecting

efficient equipment for our own

facility installations and by

designing our products for

improved energy efficiency.

•Reusing energy, for example by

reusing heat from machinery for

office heating.

We expect these actions to deliver roughly

half of our scope 1 and 2 emission

reduction target of 90% by 2040. We also

expect them to contribute roughly half of

the scope 3 emission reductions in our

Climate Transition Plan.

2. Using renewable energy

As of the end of 2025 we used 100%

renewable electricity. We remain committed

to maximizing renewable electricity generation

on our own premises. For purchased electricity,

we aim to source 100% credible renewable

electricity with the following attributes:

•Sustainable sources: Wind, solar, hydro

or geothermal.

•Local: As close as possible to where

electricity is used, and on the same grid.

•Additional capacity: Commercial operation

date (when delivery of electricity to the grid

began) of newly contracted projects

maximally one year ago.

•Bundled: Renewable electricity

certificates and electricity bundled in

long-term contracts.

•Minimal risk: Screening for material

environmental or social negative impacts

or risks, and/or elements that turn the

environmental business case negative.

•Fair price: In the context of the markets

where we operate, when compared to

similar electricity sources over time.

In the upstream and downstream parts of our

value chain, we closely cooperate with both

suppliers and customers to increase their

share of renewable energy usage, with an

initial focus on electricity.

We expect these actions to deliver roughly

half of our scope 1 and 2 emission reduction

target of 90% by 2040. We also expect them

to contribute roughly half of our scope 3

emission reductions toward 2040, excluding

the impact of external trends (global

decarbonization). This lever therefore only

includes the efforts across our value chain

to adopt renewable electricity on top of

grid decarbonization.

In 2024, we explored the reduction of

scope 1 emissions through the purchase

of renewable gas. This alternative is being

further developed and will be included in our

GHG emission reduction strategy for 2030.

3. Compensating for residual emissions

Where minimizing GHG emissions is not

feasible, we aim to compensate for emissions

from our own operations, business travel

and commuting by retiring the same volume

of voluntary emission reduction certificates

(VERs, also called ‘offsets’ or ‘carbon

credits’) or equivalent.

As part of our Climate Transition Plan,

we have defined separate (gross) emission

reduction targets pursued independently

of any offsetting.

We strive to assemble a cost-effective

offset portfolio from projects that fulfill best-

practice quality criteria and are validated by

leading third-party standards. In our offset

portfolio, only ‘removal’ offsets (nature- and/

or tech-based) are considered eligible.

We apply selection criteria based on the

combined guidance from various external

sources, such as the (Revised) Oxford

Principles for Net Zero Aligned Carbon

Offsetting, SBTi’s Beyond Value Chain

Mitigation report, peer benchmarking and

EU regulatory developments. The initial

portfolio to offset for our residual emissions

will only contain nature-based removal

projects (such as afforestation and

reforestation), since tech-based options

(such as direct air capture) currently have

limited availability and poor cost-

effectiveness. These innovative solutions

may, however, be considered as potential

investment opportunities in our ESG

innovation investment program.

We aim to prioritize sourcing recent vintage

offsets – where carbon removal has been

achieved in the past five years – from

projects in regions where we operate. This

allows us to maintain closer oversight of

project governance, including the opportunity

for in-person site visits, and aligns with our

goal of purchasing offsets where the carbon

removal impact has been recently achieved.

Offsetting for residual emissions started

in 2025.

We define our emissions from own activities,

which we compensate for as of 2025, as our

scope 1, scope 2 and scope 3 categories 6

(business travel) and 7 (employee commuting).

In 2025, we compensated for 104 kt of CO2e

through the GreenTrees Reforestation Project

in the US, which accounted for 100% of the

total remaining emissions from own

activities. The project is registered with the

American Carbon Registry (ACR) and

follows its Methodology for Afforestation

and Reforestation of Degraded Land.

As of 2030, we expect compensation

for supply chain emissions (our scope 3

categories 1, 2 and 4) will take place in

the upstream value chain, at the level

and expense of our suppliers. Achieving

our GHG neutrality target will require our

suppliers to deliver carbon-neutral products

(and therefore offset any for residual

emissions for products delivered to

ASML) as of 2030.

For the remaining product use emissions

(scope 3 category 11), we continue our

collaboration with customers to explore

the technical possibilities to eliminate

residual emissions from both improving

production efficiency and moving toward

100% renewable electricity.

Our pathway toward our scope 1, 2

and 3 emission targets

Over the next two pages, we visualize

our pathway toward our scope 1,2 and 3

emissions targets.

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

Scope 1 historic emissions1	Reducing energy use
Scope 2 historic emissions1	Using renewable energy
ASML’s SBTi emission target trajectory	Emissions compensated

Our pathway toward our scope 1 and 2 emission targets

kt CO2e

150
100
50
0

Growth at constant

emission intensity

Avoided/reduced emissions3

2025

SBTi target2

-25.2%

emissions

2030

SBTi target

-75%

emissions

2040

SBTi target

-90%

emissions

		Read<br><br>more
	Manufacturing and buildings:<br><br>Energy savings master plan	164
	Manufacturing and buildings:<br><br>Further gas reduction or green gas	164
Scope 1 and 2 target emissions in 2040

Projection based on 2025 emissions remaining constant

10
10
6.0

Key

actions

2019	2020	2021	2022	2023	2024		2030	2040
						-26
60	54	50	49	46	33	26			Actual gross emissions (kt CO2e)
0%	11%	17%	19%	24%	46%	56%	75%	90%	Emission reduction vs. base year (%)	2025
---		GHG neutrality target:	Scope 1 and 2 emissions (manufacturing and buildings)
---	---

1.Historic values shown in the visual reflect the current reporting scope and calculation methodology, and may deviate from reported values in previous Annual Reports that were based on the reporting scopes and calculation methodologies used in the respective years.

2.In addition to our SBTi-validated target from 2021, the SB has applied an LTI performance measure on scope 1 and 2 emissions for the 2023-2025 period. Read more in Corporate governance – Remuneration report

3.The description of avoided and reduced emissions is on ASML’s company (being consolidated group) level. This differs from the guidance by the GHG Protocol on estimating and reporting avoided emissions, which is on product level.

Value chain and ecosystem overview_v5.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

Supply chain emissions1	Reducing energy use
Product use emissions1	Using renewable energy
ASML’s SBTi emission target trajectory

Our pathway toward our scope 3 emission targets

Mt CO2e

50
40
30
20
10
0		Avoided/reduced emissions2
---	---	---
Global decarbonization
		Read<br><br>more
	Product use: energy reduction roadmaps	172
	Logistics: air-to-ocean project	168
	Purchased goods and services:<br><br>commitments from suppliers	166
	Product use: renewable energy<br><br>at customers via SCC	175
	Other projects, including on business<br><br>travel and employee commuting3	170<br><br>171
Innovation gap
Residual emissions4			16.9
---
7.9
0.1
6.3
5.6
0.5
2.2
2.3

2025

SBTi target

-35.3%

emission

intensity

2030

SBTi target

-55%

emission

intensity

2040

SBTi target

-97%

emission

intensity

Projection based on 2025 emissions

that scale with company growth

Growth at constant

emission intensity

Key

actions

2019	2020	2021	2022	2023	2024	2025	2030	2040
7.6	7.6	10.8	11.0	13.6	12.0	11.6			Actual gross emissions (Mt CO2e)
1.44	1.12	1.10	1.02	0.96	0.83	0.67	0.65	0.04	Emission intensity (kt CO2e per €m gross profit)
0%	22%	24%	29%	33%	42%	53%	55%	97%	Emission intensity reduction vs. base year (%)	GHG neutrality target:	Business travel<br><br>Employee commuting3	Supply<br><br>chain	Entire<br><br>value chain
---	---	---	---

2.The description of avoided and reduced emissions, included on the next page, is on ASML’s company (being consolidated group) level. This differs from the guidance by the GHG Protocol on estimating and reporting avoided emissions, which is on product level.

3.The values of historic emissions and emission compensation for business travel and employee commuting are too small to be visible at the current scale.

4.The absolute amount of residual emissions shown in the visual is equivalent to the -97% intensity target based on current Climate Transition Plan modelling assumptions, but is not a company target by itself.

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---	---	---	---

How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

Our ambitions and progress

To keep track with the pathway of our

Climate Transition Plan – which is in line

with the objective of the Paris Agreement –

we have determined the following SBTi-

validated and approved ambitions:

Scope 1 and 2

The graph on page 159, visualizes our SBTi

scope 1 and 2 targets (against a 2019

baseline value of 60 kt), namely:

•Reduce absolute gross scope 1 and 2

GHG emissions by 25.2% by 2025:

In 2025, with emissions of 26 kt CO2e,

we have already reduced absolute gross

scope 1 and 2 emissions from 2019 by

56%, exceeding the SBTi target.

•Reduce absolute gross scope 1 and 2

GHG emissions by 75% by 2030:

This translates to lowering our CO2e

emissions to below 15 kt by 2030.

•Reduce absolute gross scope 1 and 2

GHG emissions by 90% by 2040:

This translates to lowering our CO2e

emissions to below 6 kt by 2040.

We have reduced our scope 1 and 2

emissions from 60 to 26 kt CO2e between

our base year 2019 and 2025 by deploying our

energy savings master plan of 2021–2025 –

achieving energy savings by, for example,

reusing waste heat from our factories for office

conditioning through our energy grids, installing

solar panels, replacing chillers, installing

boilers and heat pumps, and optimizing the

use of air-conditioning systems. We have also

been working to further increase the amount

of renewable electricity purchased for our

premises in multiple locations around the world

– reaching 100% for all our locations in 2025.

Scope 3

For scope 3, (as shown on page 160) we have

the following SBTi-validated and approved

intensity targets (against the 2019 absolute

baseline value of 7.6 Mt):

•Reduce scope 3 GHG emissions per €m

gross profit by 35.3% by 2025:

This target represents an intensity reduction

from our baseline value of 1.44 kt CO2e per

€m gross profit to a target level of 0.93 kt

CO2e per €m gross profit. Our achieved

scope 3 emission intensity in 2025 was 0.67

kt CO2e per €m gross profit, this equals a

reduction of 53% against our 2019 base year,

achieving our SBTi target of 0.93 kt. In

absolute scope 3 emissions, this corresponds

to a 2025 target level of 15.7 Mt CO2e

versus actual emissions of 11.6 Mt CO2e.

•Reduce scope 3 GHG emissions per €m

gross profit by 55% by 2030:

This translates to lowering our CO2e

emissions to below 19.5 Mt by 2030.

•Reduce scope 3 GHG emissions per €m

gross profit by 97% by 2040:

This translates to lowering our CO2e

emissions to below 2.3 Mt by 2040.

In 2025, in absolute terms, scope 3 emissions

accounted for 11.6 Mt – or 99.8% – of our

total footprint. Of this, 5.2 Mt were ‘upstream’

emissions – mainly related to the goods and

services we buy and ship – including 0.1 Mt

from business travel and commuting. Our

supply chain emissions are predominantly

driven by purchased goods and services.

The related emissions have increased

compared to the 2019 baseline – primarily

caused by our growth and accompanying

spend. As we have calculated our purchased

goods and services emissions based on

spend, this is a logical trend. As an enabling

step to reduce our supply chain emissions in

the near future, we have been working on

improving data quality through closer

collaboration with our suppliers.

Of our scope 3 emissions, 6.4 Mt were indirect

‘downstream’ emissions from the use of sold

products at our customers’ sites. We measure

the energy efficiency of our systems on total

energy consumption per system and per wafer

pass. There, we do see decreasing energy

use per wafer pass for our EUV systems.

In the short term, we expect emissions to

remain correlated to our company’s growth.

To achieve our ambitions in our Climate

Transition Plan, we need to collaborate with

our value chain partners to first stabilize and

then reduce emissions, even as our company

continues to grow. This can be done, for

example, by increasing the capacity of

renewable electricity in regions where

some of our main customers operate.

To help us achieve our SBTi ambitions and stay

on track, we have set short and medium term

topic specific targets, which you can read more

about in the topic-specific sections to follow.

Avoided and reduced emissions

Avoided and reduced emissions are illustrated

on our scope 1 and 2 and scope 3 pathway

visualizations starting from the base year. They

are defined by comparing a scenario of growth

at constant emission intensity since 2019

(dotted blue line) to one that reflects the historic

emissions trajectory and projected growth as of

2025 (dotted pink line). The difference between

these two lines shows the combined impact of

our past decarbonization actions and other

factors resulting in emissions increasing less-

than-proportional to profit growth.

For the scenario of growth at constant

emission intensity (ktCO2e/€m gross profit) we

used the 2030 moderate sales opportunity and

mid-point to mid-point gross margin guidance

from the Investor Day 2024. For the purpose of

the Climate Transition Plan only, we modeled

further growth from 2030 toward 2040.

The projected growth scenario is different for

scope 1 and 2, and scope 3.

Scope 1 and 2

We do not anticipate growth in absolute

emissions, as we aim to develop gas-free

new buildings if and when our potential

growth requires us to do so.

Scope 3

We modeled the projected 2040 scope 3

emissions based on progress made so far,

and on expected scaling of key parameters

that drive business-as-usual emissions per

emission category – such as number of

systems sold (for product use) and employee

headcount (for business travel and commuting).

Global decarbonization

Global decarbonization reflects the assumed

emissions reduction from electricity grids

gradually shifting to renewables – and as a

result decreasing the emission factors of

average grid electricity. This is considered an

exogenous effect and therefore not part of our

emissions reductions. Global decarbonization

is modeled based on current grid emission

factors and renewable electricity percentages

of countries where our value chain partners

operate, combined with expected renewable

electricity percentages toward 2030 and

2040 based on announced pledges or

public information from these countries.

Our key actions

Our approach applies to ASML worldwide

and focuses on seven material sub-topics,

which include the key actions we defined

to achieve our Climate Transition Plan

ambitions. They are tailored to a combination

of our organizational structure and external

standards, and cover the most relevant

emission categories for ASML across scopes

1, 2 and 3, according to the GHG Protocol.

Scope 1 and 2

•Manufacturing and buildings: Including our

energy savings master plans, renewable

electricity sourcing and further gas

reduction and green gas sourcing plans.

Scope 3

•Purchased goods and services and capital

goods: Including our actions to achieve

our ambitions by closer collaboration with

our suppliers, as part of our Strategic

Sourcing & Procurement (SS&P) ESG

sustainability program.

•Logistics: Including our program to move

from air to ocean freight where possible

and feasible.

•Business travel: Including our efforts to

reduce our business travel and source

sustainable aviation fuel (SAF).

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---	---	---	---

How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

•Employee commuting: Including

our initiatives to switch to low-carbon

travel modes.

•Product use: Including actions to realize our

energy-efficiency roadmaps for our different

product categories, to ensure less energy is

required to produce a chip – providing an

opportunity for our customers to reduce

their scope 2 emissions. The biggest impact

can be achieved by customers purchasing

renewable energy for their manufacturing

locations, which we are further stimulating

through active participation in the SCC.

In addition, the information and

communications technology (ICT) industry

also has a material impact on the broader

emissions of society, as defined by our DMA.

There are a few smaller scope 3

categories (fuel- and energy-related

activities, waste generated in operations,

end-of-life treatment and investments)

that we do not address explicitly. Although

the resulting GHG emissions reduction is

an integral part of overall target-setting,

these categories make up less than 0.1%

of our total scope 3 emissions.

Innovation gap

The innovation gap for scope 3 shows the

additional emission reductions needed after

the current key actions (as described in the

next section) in order to reach the 2040 target.

We aim to close this gap in collaboration with

our supply chain partners and customers

based on additional actions to be taken and

agreed upon in the (near) future.

Making carbon a financial consideration

To guide decision-making in internal

business cases without creating direct

monetary flows, we introduced a price

for carbon emissions. Our internal carbon

price enables us to consistently factor

externalities from GHG emissions into

business cases, creating increased internal

awareness and supporting capital

expenditure (capex) investments aimed at

reducing carbon emissions and improving

energy efficiency.

The intended scope initially covers

investment decisions in the emission

categories we most directly control (scope

1 and 2) and the use of our products (scope

3 category 11), after which we will look to

expand to external emission categories in

collaboration with our value chain partners.

In 2025, our initial internal carbon price

was defined at €208 per tonne of CO2

(2024: €200). This price is indexed 4%

per year by default.

We considered reference points such as

carbon credits based on EU European

Trading System (ETS) historical prices and

forecasts, peer benchmark based on a

group analysis of more than 30 ICT industry

peers, and cost-to-society benchmark

studies in the Intergovernmental Panel on

Climate Change (IPCC) report and in US

Environmental Protection Agency (EPA)

guidance. Our internal carbon price will

be reviewed structurally on an annual basis,

and on an ad hoc basis when circumstances

arise, to align with our ESG ambition level.

In the reporting year, we used the CO2

shadow price for investment decisions

covering 0.8 kt, which corresponds to a 3%

share of total gross scope 1 and 2 GHG

emissions. The R&D shadow price is

considered in R&D investment decisions

that are relevant to achieving our scope 3

category 11 energy-reduction targets.

However, the incremental part of our R&D

investment decisions directly contributing

to the achievement of our product use

energy reduction targets cannot be derived

from our total R&D costs. CO2 shadow

prices are used exclusively in the context

of managing investment projects. The

internal carbon price is not currently used

in asset valuations in the Consolidated

financial statements.

Energy-efficient heating and cooling of buildings at the Veldhoven campus
We aim to drive continuous improvement in energy saving – from optimized<br><br>controls in our cleanrooms, to on-site green hydrogen generation and reuse<br><br>of waste heat, for example at our Veldhoven campus.

This campus includes office buildings and

manufacturing facilities. In our manufacturing

facilities, we build and test our lithography

systems, so we need heating and cooling to

maintain a constant temperature.

There are several cooling systems at the site

that generate residual heat, which would

typically go to waste. However, through a

heating and cooling network on our campus

– a ring-pipe system that uses water to

distribute thermal energy – this residual heat

is now transported to nearby buildings.

Local heat pumps installed in each building

are at the heart of the system. These units

make use of the difference between the

water loop’s temperature and each building’s

required temperature to provide heating or

cooling while minimizing energy consumption.

During winter, heat pumps extract residual

heat from the water loop to provide heating

for office buildings and industrial cleanrooms.

In summer, the same system enables

efficient cooling for office spaces by using

the highly effective industrial cooling plants.

By providing both heating and cooling, this

system offers continuous comfort throughout

the year and lowers dependence on

conventional gas boilers. It is part of our

energy savings master plan, which started in

2021, and aims to improve energy efficiency,

reduce scope 1 and 2 greenhouse gas

emissions, and decrease our dependency

on natural gas in the Netherlands.

We already achieved total energy savings

of 148 TJ as a result of infrastructural

projects executed between 2021 and 2025,

exceeding our target of saving 100 TJ.

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---	---	---	---

How we are managing energy efficiency and climate action: Our Climate Transition Plan (continued)

Dependencies, challenges and

locked-in emissions

We are dependent on the actions taken by our

customers (uptake of renewable energy) and

suppliers (for example compensating for

residual emissions from products to ASML)

– and on the complexity of our supply chain,

with a long tail existing of many different tiers.

We are also dependent on the accessibility of

affordable low-carbon energy, which is not

available in all regions where we, our suppliers

and customers operate. In addition, we are

aware that the availability of carbon credits

might be impacted by an increasing market

demand toward 2030 and 2040.

We also have to consider potential ‘locked-in’

GHG emissions – those caused by our assets

and products sold within their operational

lifetime. We still use gas boilers at multiple

locations, for example, and it may take years

to replace these with low-carbon alternatives.

Our products, including critical components

such as the EUV light source and the wafer

and reticle stages, consume significant

amounts of energy, and we are developing

energy efficiency roadmaps aimed at

minimizing this energy consumption as

much as possible. However, whether the

remaining energy use results in locked-in

emissions largely depends on the availability

of affordable low-carbon energy to achieve

our ambitions toward 2040. As an active

founding member of the SCC, we collaborate

with industry partners and governments to

promote the availability of, and access to,

renewable electricity in the regions where

our customers operate.

We also foresee a challenge in our supply

chain regarding hard-to-abate emissions,

for example in purchasing low-carbon raw

materials such as steel and aluminum –

both used in our products and accounting

for most of the weight of our machines.

Currently there are no viable low-carbon

alternatives and the production industries for

these materials are not aligned with the Net

Zero Emissions by 2050 Scenario provided

by the International Energy Agency (IEA).

We aim to investigate opportunities in

these areas. For example, we are working

on more sustainable design principles for

our systems, products and processes to

maximize reusability and recyclability of

these materials – such as by opting for

mono-material components. We also

collaborate with suppliers to look into

using materials that can be upgraded,

refurbished or repaired, and thus reused.

When no longer usable, we look into

recycling of materials – and aim to use more

recycled content in raw materials. We are

also looking into sourcing certified materials

to ensure they adhere to internationally

recognized sustainability standards.

At present, also due to these challenges,

progress in reducing the carbon footprint

of our supply chain has been slower than

anticipated, as explained in our Purchased

goods and services chapter.

Potential impact of changes

in our product portfolio

To determine the emission-reduction trajectory

for our Climate Transition Plan, we calculate

different pathways using an internal modeling

tool. The development over time of our sales

product mix (EUV and DUV lithography

systems, metrology and inspection systems,

computational lithography) is modeled in line

with our public guidance, as disclosed during

our most recent Investor Day – which indicates

that, toward 2030, we expect a gradual shift to

larger percentages of EUV systems sold.

We have not included any scenarios in

which the future developments of new

product families have been modeled, as

we do not yet have a sufficiently clear view

on the potential increases or reductions in

energy consumption of those products.

We will keep monitoring these innovative

developments and incorporating them in

our plans where needed.

Climate Transition Plan investments

In order to achieve our energy efficiency

and climate action ambitions toward 2030

and 2040, we need to make significant

investments. These include:

•Capital expenditure – for example

purchasing equipment to make our

factories and other facilities more energy

efficient, as well as lease contracts for

new and/or renovated buildings.

•Operating expenditure – for example

investing in innovation, research and

development to further improve the

energy efficiency of our product portfolio.

The investments in our key environmental

sustainability actions resulting from our

Climate Transition Plan are described in the

following topic-specific chapters. Where

applicable, the link to our EU Taxonomy

assessment is described. The alignment

assessment of our eligible investments is

included in our EU Taxonomy disclosure.

There, we also assess if our key economic

activity (CE 1.2 Manufacture of electrical and

electronic equipment) is – according to the

Environmental Delegated Act – substantially

contributing to the transition to a circular

economy. Due to the nature and complexity

of lithography systems, we are currently

unable – and expect in the near future to

remain unable – to meet all the technical

screening criteria from the EU Taxonomy,

as explained in our Circular economy section.

We support the transition to a sustainable

economy by means of our key actions and

related investments made as part of our

circular strategy and for our climate action

pathway to reach GHG neutrality by 2040.

Environmental – EU Taxonomy

EU Paris-aligned benchmarks

EU Paris-aligned benchmarks are indices

where the total GHG emission levels of

all underlying assets are aligned with the

Paris Agreement – which aims to limit the

rise in global temperatures to well below

2°C above pre-industrial levels, and to

pursue efforts to keep the rise to 1.5°C.

Companies can be excluded from these

benchmarks if they significantly harm one

or more of the environmental objectives

of the EU, however ASML is not excluded.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Manufacturing and buildings

| Our objective | | --- || We aim to reduce emissions from our manufacturing locations and buildings by lowering energy consumption, increasing the use of renewable energy, and compensating for residual emissions. | | --- || Our scope | | --- |

In scope are our scope 1 and 2 emissions

	-40	0
2024
2025
	Achieved	2025 target: GHG neutral

from manufacturing and buildings, which

include our manufacturing locations and both

owned and leased office locations worldwide.

We report on all our buildings in use.

Scope 1 emissions comprise direct CO2

emissions from the use of natural gas –

the majority of which is used for heating and

humidifying our buildings – petrol and diesel

used for generators, process CO2 used in our

operations and the use of company cars.

Scope 2 emissions arise from our purchased

heat and electricity, which accounts for

approximately 83% of our energy use. Most

of our electricity consumption relates to the

manufacturing of chipmaking equipment –

assembly and testing of lithography, metrology

and inspection systems – and maintaining

consistent climate conditions such as

temperature, humidity and air quality in

our cleanrooms.

Targets and performance

Become GHG neutral for scope 1 and 2

emissions from our manufacturing and

buildings by 2025

We have reduced our scope 1 and 2

emissions from 60 kt to 26 kt between 2019

and 2025 by deploying our energy savings

master plans and purchasing more

renewable electricity. The residual emissions

(26 kt) have been compensated for to reach

our GHG neutrality target.

Scope 1 and market-based scope 2

emissions

158329674407636

33 kt

-26 kt

26 kt

In addition to our GHG neutrality ambition we

have set an SBTi-approved target to reduce

absolute gross scope 1 and 2 GHG emissions

by 25.2% by 2025, as part of our Climate

Transition Plan. We are aligned with our target

trajectory, having already reduced absolute

scope 1 and 2 emissions from 2019 by 56%,

exceeding the SBTi target.

We have defined two additional targets

related to manufacturing and buildings:

Achieve energy savings of 100 TJ from

energy-saving projects in our own

operations worldwide by 2025

	0	150
2024
2025
	Achieved<br>	2025 target: 100 TJ

158329674408010

In 2025, as part of our energy savings

master plan, we executed key projects in the

Netherlands, Germany, the US and Taiwan,

resulting in 48 TJ of annual energy savings.

Total energy savings amounted to 148 TJ as

a result of infrastructural projects executed

between 2021 and 2025, exceeding our

target of 100 TJ and the equivalent of 26 kt

CO2e using location-based emission factors.

Having achieved our target, we want to

continue our energy savings journey beyond

To support this ambition, we have

established an energy savings master plan

toward 2030 with a target of another 130 TJ

reduction by 2030.

Purchase 100% renewable electricity for

our own operations worldwide by 2025

	0%	20%	40%	60%	80%	100%
2024
2025
Achieved<br>				2025 target: 100%

158329674408082

96%

At the end of 2025, the share of renewable

electricity was 100%. Our target was achieved

by upgrading our long-term power purchase

agreement (PPA) in Taiwan to 100% renewable

electricity. We also purchased 100% renewable

electricity for the first time in South Korea,

Singapore, Malaysia and Japan. Furthermore,

as a result of our company’s continued growth,

we have purchased additional renewable

electricity for locations where we already

sourced 100% renewable electricity last year.

Our actions and resources

Progressing with our master plan to

reduce energy consumption

Our five-year energy savings master plan

covered each of our five largest industrial

sites and comprised more than 80 projects.

It aimed to reduce energy consumption

through direct annual savings of at least

100 TJ by 2025, through projects executed

in the period from 2021 to 2025.

The main components of the master plan

were improving the efficiency of the technical

installations used for our operations, and

optimizing our portfolio by building new

offices that meet the latest green building

standards – such as BREEAM (Building

Research Establishment Environmental

Assessment Method) in Europe, LEED

(Leadership in Energy and Environmental

Design) in the US and Asia, and LEED/Green

Standard for Energy and Environmental

Design (G-SEED) in South Korea.

Reducing our use of natural gas is also a key

objective, and we’re implementing an energy

grid – expected to complete in 2026 – that

reuses waste heat from our factories and

offices at our site in Veldhoven. This grid

includes a two-pipe loop providing waste

heat for heating in winter and energy-efficient

cooling in summer, and we’re incorporating

adiabatic humidification. The use of natural

gas in Veldhoven was reduced from around

4.4 million m3 (baseline 2019) to around 3.5

million m3 by 2025, driven by the energy grid

and other energy-saving measures – including

using heat pumps instead of combustion

heating. It is expected to be further reduced

through projects scheduled for completion

in 2026.

Using renewable energy

We’re driving a shift to renewable energy by

increasing the share of direct green electricity

purchases – so-called ‘bundled’ renewable

electricity – sourced close to our premises.

In the Netherlands, we are in the fifth of

a 10 year purchase agreement for green

electricity for our installations, and are

increasing the share of our own renewable

electricity generation through increasing

the number of solar panels.

In Taiwan, we upgraded our PPA with the

aim of ensuring that, by 2025, our operations

there would be powered entirely by renewable

energy – since we do not use gas in Taiwan,

we have achieved this aim.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Manufacturing and buildings (continued)

Manufacturing and buildings GHG neutrality pathway

Resources

The total investments toward our five-

Kt CO2e

2024 emissions net of<br><br>renewables	Using renewable energy
	Reducing energy use
2025 gross emissions<br><br>before renewables	Emissions compensated

year energy savings master plan in 2025

229797930207628

amounted to €126 million, of which the

projects for the heat pumps and renovation

60
50
40
30
20
10
0

of office buildings in Veldhoven, and the solar

-23

panels for our San Diego location, are the

most significant. In total, next to external

support, 10 FTEs worked on the energy

savings master plan. The net proceeds of

-1

-26

the Green Bond we have issued in 2022

have been fully allocated to eligible green

building projects by the end of 2024.

Our solar panel, energy grid and heat

pump investments directly contribute to our

target of 100 TJ savings by 2025. The capex

2024<br><br>emissions net<br><br>of renewable<br><br>energy	Step up toward<br><br>2025 gross<br><br>emissions<br><br>before<br><br>renewable<br><br>energy	Step up toward<br><br>2025 of<br><br>renewable<br><br>energy<br><br>purchase	Energy savings<br><br>master plan<br><br>reduction	2025 gross<br><br>emission net of<br><br>renewable<br><br>energy	2025 emissions<br><br>compensated	2025 net<br><br>emissions

is assessed under EU Taxonomy activities

CCM 4.1 Electricity generation using solar

photovoltaic technology, CCM 4.9

Transmission and distribution of electricity,

Key energy-saving projects in 2025

In 2025, we saw an acceleration of the energy-saving projects in the master plan. These included: •Improving the energy efficiency of our DUV factory by renovating the building in Veldhoven (savings approximately 3 TJ per year). •Upgrading the chiller installation and installation of electrical steam humidifiers in Eindhoven (savings approximately 9 TJ per year).

•Insulating piping systems in Wilton (savings approximately 4 TJ per year). •LED lighting projects in Taiwan and Veldhoven (savings approximately 2 TJ per year). •Multiple small improvements during the year and projects from earlier years, finalized in and accounted for as of 2025 (savings approximately 30 TJ total per year). Together with earlier projects realized as of 2021, we exceeded our target of saving 100 TJ per year by 2025.

and CCM 4.16 Installation and operation

of electric heat pumps.

For the renovation of buildings, we have

included our total investments. The incremental

part of the investments directly contributing

to the achievement of the target of 100 TJ

savings by 2025 cannot be derived from our

total renovation expenditure. We have

renovated multiple buildings over the past

year – the corresponding capex is considered

eligible under EU Taxonomy activity CCM

7.2 Renovation of existing buildings. We

classified the activity under climate change

mitigation because the focus is on improving

energy efficiency rather than circularity.

As part of our energy-savings master plan

we anticipate similar investments up to 2030

related to the renovation of buildings, hydrogen

projects, solar panels and multiple smaller

infrastructural improvements at our sites.

To report our market-based scope 2

emissions, we include the share and types

of energy attribute certificates (EACs) in the

metrics table on page 176. The total current

expenditure for these EACs amounted to

€6.9 million for 2025.

Grid congestion in the Netherlands

Despite our continued efforts to reduce

the energy demand of our operations, we

recognize that the broader challenge of grid

congestion in the Eindhoven area extends

beyond the boundaries of our company

alone. While our investments in energy

efficiency projects decrease our dependency

on conventional grid capacity, the national

electricity network is facing increasing strain

due to rapid electrification, expanding

industries, and rising demand from households

and mobility. We therefore engage proactively

with industry peers, national and local grid

operators, and public stakeholders to schedule

and support long term solutions, such as grid

reinforcement and future smart balancing,

in line with our demand.

Environmental – EU Taxonomy

Looking ahead

In 2026, execution of the energy savings

master plan for the 2026–2030 time frame

will commence. This includes over 60

projects covering each of our five largest

industrial sites, with the goal of achieving

a reduction of another 130 TJ.

In the coming years, we also plan to expand

the use of solar panels at our sites in Europe,

the US and Asia – we intend to have more

than 20,000 solar panels on our roofs by

This should lead to a total saving in

purchased energy of around 30 TJ per year,

and a total CO2e emission reduction of

around 2 kt per year.

Preparations are also underway to begin

integrating green gas into our energy

strategy, starting in 2028.

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---	---	---	---

Energy efficiency and climate action: Purchased goods and services

| Our objective | | --- || We aim to reduce emissions in our supply chain by working closely with suppliers to embed low-carbon practices and drive systemic change toward a GHG neutral supply chain by 2030. | | --- || Our scope | | --- |

Our systems comprise hundreds of

thousands of parts, most of which come

from our suppliers. The elevated carbon

footprint of our purchased goods and

services is largely attributable to the energy-

intensive manufacturing processes and

complex supply chains of the materials

used in their production – including printed

circuits, optics, electronics and metals

like steel and aluminum.

Our supply chain emissions are predominantly

driven by purchased goods and services,

corresponding to scope 3 category 1

Purchased goods and services and category

2 Capital goods – the scope of this section.

For purchased goods and services, all

upstream (in other words, cradle-to-gate)

emissions from the production of products

purchased or acquired by ASML are in

scope. Products include both goods (tangible

products such as capital goods, materials,

parts and modules) and services (intangible

products such as maintenance contracts).

Purchased goods and services (85%) and

capital goods (8%) contribute to 92% of

upstream emissions. Most of the remaining

upstream emissions are from outbound

logistics (scope 3 category 4).

Targets and performance

Become GHG neutral for scope 3

emissions related to purchased goods

and services by 2030

Reaching GHG neutrality by 2030 requires

strong collaboration with our suppliers.

Although our Climate Transition Plan highlights

challenges in addressing hard-to-abate supply

chain emissions, we are encouraging them to

commit to reducing their carbon footprint by

2030 through improved energy efficiency,

increased use of renewable energy,

collaboration throughout the entire value

chain, and offsetting as a last resort.

Achieving our target requires that any future

compensation for residual supply chain

emissions (remaining scope 3 categories 1,

2 and 4 emissions after reduction) be

undertaken within the upstream value chain,

at the level and expense of our suppliers.

	0
2024
2025		Off track	2030 target: GHG neutral
---	---

227598907043453

In 2025, total emissions related to purchased

goods and services (including capital goods)

were 4,781 kt CO2e – which is higher than

our base year 2019 emissions of 2,841 kt,

primarily due to business growth and the

increased need for goods and services. As

long as we rely on spend-based emissions

data, our calculated CO2e emissions will

fluctuate in line with our expenditure. To

enhance the accuracy of our reporting, we

intend to transition from a spend-based

method toward supplier-specific data for

scope 3 categories 1 and 2 emissions, enabling

us to better reflect suppliers’ emission

reduction efforts in our emissions reporting.

Get commitment from our top-80%

suppliers (based on CO2e emissions) to

reduce their CO2e footprint by 2030

| Off track | 2026 target: 75% | | --- | --- || | 0% | 20% | 40% | 60% | 80% | 100% | | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | 2025 | | | | | | |

90709709352392

We set this target to encourage suppliers in

our shared journey toward becoming GHG

neutral by 2030. By year-end 2025, 32%

of our top suppliers in scope had committed

to reducing their CO2e footprint by 2030. We

aimed to achieve a 45% commitment by the

end of 2025 to enable us to remain on track

for the 2026 target; however, performance

did not meet this goal.

In 2025, we updated our calculation

methodology to introduce greater granularity

in categorizing the different types of GHG

reduction commitments set by our suppliers.

Our key assumption incorporated is that

supplier spend-based emissions grow

proportional to ASML toward 2030, based

on the sales and gross margin guidance

from the Investor Day 2024. This update

in methodology resulted in an increase

of commitment by suppliers from 9% to

17% in 2024.

Our suppliers are facing challenges in their

efforts to reduce GHG emissions. A key

barrier identified is the cost of decarbonization,

including investments in low-carbon

technologies and the potential expense of

carbon offsetting. These financial constraints

are limiting suppliers’ ability to commit.

Additionally, insufficient data quality is

hindering suppliers from making well-informed

and balanced commitments. Many are still

developing GHG reporting infrastructure.

With our proactive approach to sustainability

reporting we recognize that the availability

and quality of supplier emissions data is

still evolving in our industry.

Finally, suppliers are dependent on both

upstream and downstream partners to enable

reductions. They rely on their own supply

chains (which often cause the bulk of their

total emissions) for low-carbon inputs and

on clients like us to mandate low-carbon

product designs.

While we are still working to reach our 2026

target of 75% commitment from our top-80%

suppliers (based on CO2e emissions) to reduce

their CO2e footprint toward GHG neutrality, we

acknowledge this will be challenging based on

the current status. While progress is ongoing,

it is possible that achieving this target may

take longer than initially anticipated.

Our actions and resources

Engaging and collaborating with

our suppliers

Our SS&P ESG sustainability program is

a key enabler in our efforts to reduce scope

3 emissions by actively engaging and

collaborating with suppliers. Our aim is to

engage with value chain partners who share

our values and are dedicated to maintaining

environmental standards.

Upskilling our supplier account teams in

carbon literacy

In 2025, we held knowledge sessions

to inform and train our internal teams on

specific supplier GHG emission topics.

The Supplier Audit teams also took part

in a dedicated training program.

Re-affirming supplier commitments to ESG

We asked suppliers to sign our letter of

commitment (LOC) to commit to and

collaborate with us to achieve our ESG

ambitions. By signing, they agree to:

measure and share their CO2e emission

data with ecosystem partners; set ambitious

targets to reduce or compensate for CO2e

emissions; and collaborate with ASML and

ecosystem partners to remanufacture used

system parts, tools, packaging and other

materials, to maximize reuse. For the

estimated emission reduction of this action,

we refer to our Climate Transition Plan.

Since 2024, we continuously focus on

suppliers’ data quality and informing and

training them on calculation methodologies

for their scope 1, 2 and 3 emissions. In 2025,

we focused on strategies to reduce the

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Purchased goods and services (continued)

carbon footprint of materials throughout

their lifecycle. We also discussed options for

reducing carbon emissions in their upstream

supply chain and own operations, including

sustainable sourcing, more environmentally

friendly transportation modes and increased

use of renewable energy in their facilities.

Additionally, we identified a supplier need

for specific ‘green design’ requirements from

their customers, such as ASML.

Internally, we see growing focus and support

for reducing our upstream carbon footprint.

We have contracted a service provider to help

us improve suppliers’ emissions data quality.

The number of FTEs in the SS&P ESG

sustainability program remained at five in 2025.

Tackling energy efficiency and emissions

industry-wide

We increasingly cooperate cross-industry

to reduce emissions across our value chain.

In practice this means working with our

supplier base and sharing our Supplier

Handbook, and working with customers and

peers, both directly and in cross-industry

collaboration platforms – such as the SCC –

to address energy efficiency and climate

change issues, increase transparency and

collaboration, and increase global access

to renewable electricity.

Identifying low carbon footprint

alternatives

We believe an effective way to estimate the

carbon footprint of purchased goods and

services is life cycle assessment (LCA) that

uses mass data. Conducting an LCA typically

requires significant data collection and effort,

so we developed a simplified LCA tool: The

Carbon Quickscan tool. With this tool,

we were able to conduct a mass-based

carbon assessment of an entire product –

the TWINSCAN NXT:870B. We collected and

stored data on mass, material, assembly,

testing and transport at the building-block

level. Over a six-month period, the assessment

included more than 400 building blocks and

provided new insights on the carbon

footprint of our products.

Building on the carbon data collected last

year, we aim to integrate our cost of goods

reduction initiatives with our ongoing supplier

GHG reduction commitment program.

Through this combined approach, we

encourage suppliers to reduce the carbon

footprint of products delivered to us—by

increasing reuse or identifying alternative

low-carbon, low-cost solutions.

Looking ahead

In the coming years, we will stay focused on

the following activities to reduce emissions in

our supply chain:

•We are actively engaging with the

top-80% of our suppliers. We stimulate

our Tier 1 suppliers to engage with their

own suppliers to extend decarbonization

efforts upstream. In cases where these

suppliers are also our direct suppliers,

we work together to maximize our joint

leverage and accelerate impact.

•We are further expanding our training

curriculum to support both internal teams

and suppliers in better understanding

and calculating scope 3 emissions.

Page 166.jpg

This capacity-building effort is closely

linked to our ambition to improve the

quality of supplier-reported CO₂e emissions

data. As part of this initiative, we are

collaborating with suppliers to enhance

data accuracy and consistency, with the

goal of collecting verified emissions data

from our top 100 suppliers.

•Following on from our first CO2e footprint

estimate with the Carbon Quickscan tool,

we are enhancing our internal capabilities

to conduct LCAs on (parts of) our products

and use our data for further analysis. This

will help identify high-carbon-footprint hot-

spots in our supply chain. Based on these

findings, we actively engage with suppliers

to explore opportunities for reducing

carbon emissions through sustainable

design, material efficiency and low-impact

manufacturing. We are beginning to explore

how to increase our use of low-carbon

materials, as we believe this will become

a key pillar in reducing the overall carbon

footprint of our products.

We intend to transition from a spend-based

method toward supplier-specific data for

scope 3 categories 1 and 2 emissions.

However, we experience that many suppliers

are not yet equipped to report emissions

in line with the GHG Protocol Corporate

Standard, partly due to the relief provided

by the EU Omnibus Regulation, which delays

their CSRD reporting obligations. To maintain

consistency, we continued to apply the

spend-based method in 2025. Meanwhile,

we actively collaborate with suppliers to build

readiness and support future data maturity.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Logistics

| Our objective | | --- || We aim to reduce emissions by reconsidering our logistics flows and collaborating with logistics partners to transition toward more sustainable modes of transport. | | --- || Our scope | | --- |

In scope are scope 3 category 4 emissions,

related to transportation and distribution

services purchased by ASML, including

inbound logistics (such as transportation of

materials, parts and modules from suppliers

to our facilities), outbound logistics (such

as transportation of products to customers),

and outsourced logistics between our

own facilities.

Outbound logistics services purchased

are categorized as ‘upstream’ because they

are a purchased service. Included are GHG

emissions related to freight – such as those

from air freight, ocean freight and road

transport – and emissions caused by the

use of outsourced warehouses.

Targets and performance

We have one target for our scope 3

emissions related to logistics (category 4):

| Become GHG neutral for scope 3 emissions related to logistics by 2030 | | --- || | 0 | 50 | 100 | 150 | 200 | 250 | 300 | 350 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | | | 2025 | | | | | | | | || On track | 2030 target: GHG neutral | | --- | --- |

111050674466274

The base year is 2019, with scope 3

emissions related to upstream transportation

and distribution of 213 kt CO2e. Last year,

we began enhancing and substantiating the

emissions data we receive from our logistics

service providers per modality and product –

allowing us to break down emissions and

work together with the business on initiatives

to reduce their impact.

Our scope 3 emissions with regard to

logistics in 2025 were 302 kt, with 276 kt

coming from air transportation. This increase

from the baseline is due to the growth of our

business, which requires more transportation

and distribution. However, our scope 3 intensity

continues to decline, and we currently remain

on track to meet our intensity targets.

As part of our SS&P ESG sustainability

program, we actively engage and collaborate

with our suppliers to help reduce scope 3

emissions – and we have identified a number

of logistics-related initiatives that will support

this approach. Specifically for logistics, we

also aim to achieve significant emission

reductions by rethinking preferred modes

of transportation.

Scope 3 emissions from logistics

13743895347276

Our actions and resources

Rethinking shipping routes

In 2025, we further progressed with our

efforts to avoid shipping all products centrally

from Veldhoven in the Netherlands to our

global customers, along with initiatives aimed

at sourcing more parts and tools locally.

Aiming for more sustainable and cost-

effective transportation modes

Our long-term transport vision is to move

to ocean freight where possible and feasible,

reducing our GHG emissions significantly.

Switching our transportation flows from air to

ocean has the potential to achieve a 70–85%

cost reduction opportunity and a 95%

CO2e reduction per kilogram shipped. Our

customers acknowledge the importance of

more sustainable transportation, but also

express their concerns regarding increased

transit times and risk of cargo damage.

Through multiple projects, we are working

with our freight teams and customers to

drive this transition.

Our air-to-ocean project went from the pilot

phase in 2024 to the minimum viable project

phase in 2025. Our ambition for 2025 was

elevated compared to 2024, with the goal

to ship more mature DUV and metrology and

inspection systems via ocean freight – and

we achieved this.

With our cross-company, cooperative

approach to multiple ocean freight initiatives,

we realized significant successes in 2025.

For DUV, the shipment of 17 full systems

saved us around 3 kt CO2e, while transport

materials used for system shipments returned

to Veldhoven resulted in approximately 9 kt

CO2e savings. For metrology and inspection

systems, we saved about 0.1 kt in 2025 by

shipping 12 systems to customers – and

launched a project to also ship several

inbound modules by ocean freight, resulting

in around 2 kt CO2e reduction.

At the start of 2025, we conducted a

comprehensive request-for-quotation

process for all our sea freight requirements,

and selected a logistics partner that shares

our ambitious goals. They will contribute to

reducing our emissions by increasing bio-

methanol usage for their fleet of dual-fuel

methanol container vessels.

To support the move to more sustainable

transport and shipping modes – and in

advance of future EU regulations (‘ReFuelEU’)

requiring all airlines to follow suit – we continued

investment in sustainable aviation fuel (SAF).

This reduced our CO2e emissions by 6 kt –

2% of our total freight emissions for 2025.

We will engage with both suppliers and

customers on options to change transportation

modes where possible from air to ocean

freight, and with our logistics partners to

buy more SAF for any transportation and

distribution still done by air.

ASML_Sustainability_Environmental_Energy-efficiency_Bg_v3.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Logistics (continued)

Resources

For transporting DUV and metrology and

inspection systems by ocean freight, within

the current transport tool pool we were able

to support air-to-ocean projects.

Furthermore, because of our elevated

ambitions and the increasing lead time due

to returns of containers via ocean freight,

we agreed with our forwarders to increase

the number of our leased ocean containers

by 63 – leading to higher yearly expenditure

of €1.0 million.

In 2026, we aim to absorb the step up to

high-volume ocean freight of our mature

systems in our current transport tool pool

by optimizing utilization of these tools. To

facilitate the transition from air to ocean

freight for the common platform (EUV), we

have started developing special containers

for safe transportation by sea in 2030. In

2025, the investment in this development

focused mainly on manpower and D&E

capability.

We dedicated 20 FTEs to the air-to-ocean

project. Investments in more sustainable

transportation modes are also motivated by

considerations of future cost-effectiveness.

For SAF use in logistics, we have agreements

in place with all our forwarders whereby one

or both parties spend a small percentage of

the annual air-freight cost or revenue

attributable to ASML in SAF. In 2025, we

contributed €0.4 million on SAF programs

from our forwarders, while €1.2 million worth

of SAF is used for our air freight. For next

year, we intend to continue optimizing our

SAF strategy.

Looking ahead

We are progressing toward our target of

achieving GHG neutral scope 3 emissions

for logistics by 2030. In 2026, we plan to

keep working on obtaining more accurate

emissions data from our logistics partners as

well as our collaborative reduction actions.

To further reduce emissions, in the coming

years we will be focusing on:

•Aiming in 2026 to reach the full product

project phase to ship mature DUV and

metrology and inspection systems in high

volume via ocean freight.

•Progressing our pilot project to ship EUV

modules via ocean freight in the future

•Investigating the possibilities to reduce the

emissions of the outsourced warehouses

we use worldwide and the trucks used for

the last mile.

To reach our GHG neutrality target by 2030,

we are dependent on compensation for the

residual emissions by our logistics partners.

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Energy efficiency and climate action: Business travel

| Our objective | | --- || We aim to reduce emissions from business travel by limiting travel where possible, encouraging train and electric vehicle for shorter distances and contributing to SAF programs, while compensating for residual emissions. | | --- || Our scope | | --- |

In scope are scope 3 category 6 emissions,

related to transportation of our employees

and the ‘N1-conversion’ category of non-

employees for business-related activities in

vehicles owned or operated by third parties,

such as aircraft, trains, buses and passenger

(rental) cars. Hotel stays are also included.

Targets and performance

158329674400016

We have defined one target for our scope 3

emissions related to business travel

(category 6):

| Become GHG neutral for scope 3 emissions from business travel by 2025 | | --- || | -80 | -60 | -40 | -20 | 0 | 20 | 40 | 60 | 80 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | | | | 2025 | | | | | | | | | | | Achieved | | | | | 2025 target: GHG neutral | | | | |

159978941880665

65 kt

-32 kt

32 kt

In the base year 2019, our business travel

emissions were 97 kt CO2e. In 2025, taking

into account our continuous critical focus

on travel budgets and SAF purchases, total

emissions were 32 kt. The residual emissions

(32 kt) have been compensated for to reach

our GHG neutrality target.

Scope 3 emissions from business travel
Air travel (after<br><br>SAF purchase)	Car rental
---	---
	Public transport
Hotel	Taxi	Our actions and resources
---

Reducing emissions globally

In 2025, we continued to evaluate travel

budgets globally to identify potential areas

for emission reduction.

We also introduced enhanced management

travel dashboards for increased insights and

awareness on business-travel-related emissions.

We stimulated green travel by encouraging

employees to use train travel or electric cars

for specific destinations such as Berlin, and

switching to electric vehicles (EVs) in our

rental car program in Veldhoven.

By increasing SAF purchases for part of our

global business journeys, we were able to

further reduce residual emissions by 28 kt

CO2e (2024: 7 kt).

In the Netherlands, we signed the Dutch

Business Sustainable Mobility Pledge,1 which

commits us to achieving a gross emission

reduction from business travel of 50%.

With emissions of 0.73 t CO2e per FTE in

2025, we have already met this commitment

compared to our 2019 base year value of

3.88 t CO2e per FTE, which is partly

attributable to the change in reporting

method for aviation. We aim to keep the

emissions per FTE below current levels,

with a continued emphasis on seeking

additional improvements.

To assess the effectiveness of these actions,

we report progress internally against our

business travel targets. In addition, our CO2e

emissions dashboard indicates to what

extent CO2e emissions need to be reduced

by SAF purchases to meet our future targets

– and how much remains to be compensated

for by carbon credits.

Resources

We are only able to directly relate our financial

investments in SAF to the achievements

toward our GHG emission-reduction targets

for business travel.

In 2025, we contributed €3.6 million to the

SAF program of the business travel airline.

Looking ahead

In 2026, we will continue our strict ‘need-to-

travel’ policy while investigating opportunities

to further reduce travel overall. We plan to

continue our existing strategy using SAF

and we plan to compensate for the residual

emissions, which are expected to be in line

with the current year.

1.In the Dutch Business Sustainable Mobility coalition, around 70 organizations representing more than 550,000 employees in the Netherlands have signed up for the Dutch Business Sustainability Mobility Pledge, which sets out the ambition of the front-runners of the Dutch business community to

explore the potential of a sustainable shift in business mobility. The main, shared ambition is to reduce CO2e emissions from business travel by 50% per FTE in 2030 against the base year 2016. Due to data availability, we use the (updated) base year of 2019 rather than 2016.

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Energy efficiency and climate action: Employee commuting

| Our objective | | --- || We aim to reduce emissions from employee commuting by supporting the shift to alternative modes of transport and the shift to electric vehicles, while compensating for residual emissions. | | --- || Our scope | | --- |

In scope are scope 3 category 7 emissions,

related to the transportation of (fixed-contract)

employees between their homes and worksites.

Targets and performance

We have one target related to reducing

our scope 3 emissions from employee

commuting (category 7):

158329674400091

| Become GHG neutral for scope 3 emissions from employee commuting by 2025 | | --- || | -60 | -40 | -20 | 0 | 20 | 40 | 60 | | --- | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | | 2025 | | | | | | | | | Achieved | | | | 2025 target: GHG neutral | | | |

159978941876680

36 kt

-45 kt

45 kt

Our commuting emissions (predominantly

relating to commuting by car) increased from

36 kt to 45 kt CO2e in 2025, mainly because

of our methodology update this year, where

we transitioned from estimating office presence

to more direct data through a more consistent

global rollout of badge-swipe tracking.

Furthermore, we had a slight increase in total

FTEs. The residual emissions (45 kt) have

been compensated for to reach our GHG

neutrality target.

We promote a balanced working-from-

home policy and have developed a mix

of sustainable commuting options for our

employees, encouraging people to travel

to work by bicycle or public transport.

Alongside this, we provide shuttle bus

services from park-and-ride locations and

offer satellite offices in the Netherlands.

We aim to lower our CO2e emissions and

environmental impact, while also releasing

pressure on road infrastructure and congestion.

| Scope 3 emissions from commuting | | --- || Car | Public transport | | --- | --- | | Other | || Our actions and resources | | --- |

Continued impact through the Dutch

Business Sustainable Mobility Pledge

In the Netherlands, the Dutch Business

Sustainable Mobility Pledge also requires a

gross emission reduction from commuting.

We provide national railway commuting cards

to employees to stimulate travel to the office by

public transport. In addition, we provide

sufficient EV charging options, as well as

campus e-bikes and on-demand shuttle buses

for inter-campus transportation.

To stimulate the use of bicycles for commuting,

we continued a cycling reward of €0.35 per

kilometer, and offer cycling lessons for

colleagues not used to riding a bike.

With emissions of 1.05 t CO2e per FTE

working in the Netherlands in 2025, we have

reached the level of our 2030 commitment

of reducing 50% compared to our base year

value of 2.30 t CO2e per FTE in 2019.

Exploring global additional reduction

initiatives

To close the target gap for employees globally,

we are aiming to improve data quality and

insights of employee commuting emissions

worldwide. In 2024, we started an employee

commuting decarbonization project across

seven representative locations to better

understand commuting habits, reduce

emissions and promote greener commuting

options – not only in the Netherlands, but in our

operating regions worldwide. Input from

employees provided us with insights into their

preferences in low-carbon transport, which will

likely lead to targeted interventions to further

reduce commuting emissions in later years.

In 2025, we worked with four key pilot sites to

align reduction of emissions through adoption

of EVs and alternative modes of transport per

site and which incentives to put in place for

using shuttle buses, bicycles or public

transport. We also made steps on improving

data collection and tooling to enable data-

driven decision-making based on actual

employee commuting data.

Resources

We dedicated two FTEs to the commuting

decarbonization project. In 2025, we invested

€0.1 million in EV chargers and additional

campus e-bikes. We also spent €1.3 million

to compensate for 45 kt CO2e of our

commuting emissions.

Looking ahead

Based on the lessons learned from the

commuting decarbonization project, we

aim to set up targeted interventions in both

the Netherlands and other countries we

operate in to reduce commuting emissions

– for example by exploring opportunities to

increase the adoption of electric vehicles

and organize for the related infrastructure.

In 2026, we aim to continue working on

improving our commuting data, focusing

on four different sites: Veldhoven (the

Netherlands), San Diego (US), Berlin

(Germany) and Pyeongtaek (South Korea).

Finally, we intend to compensate for the

residual emissions, which are expected to

be in line with the current year.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Product use

| Our objective | | --- || In collaboration with our customers, we aim to reduce emissions from product use when designing new lithography, metrology and inspection systems or parts, increasingly focusing on reducing their energy consumption, supporting progress toward GHG neutrality by 2040. | | --- || Our scope | | --- |

The largest portion of our (indirect) GHG

	0%	-2%	-4%	-6%	-8%	-10%	-12%	-14%
2024
2025

emissions arises during use of our systems

at our customers’ factories. Our scope 3

emissions from the use of sold products

relate to scope 3 category 11. In scope are

expected lifetime emissions from the use of

goods and services we sell: EUV and DUV

lithography systems, metrology and inspection

systems and computational lithography.

Targets and performance

Until 2025, energy efficiency targets were

set for the EUV NXE product family. From

2026 onward, we plan to extend these

targets to include EUV EXE and DUV NXT

product families.

Achieve a 10% decrease (on 2018

baseline) in absolute equivalent power

| Not achieved | 2025 target: 5.1 kWh | | --- | --- || | 0 | 2 | 4 | 6 | 8 | 10 | | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | 2025 | | | | | | |

consumption (MW) of our

NXE

systems

by 2025

For the TWINSCAN NXE:3800E, the total

power consumption decreased 0.06 MW to

1.26 MW compared to 2024. Compared to

the 2018 baseline figure of

1.44 MW

, this is

a reduction of 13%.

Achieved<br>	2025 target: -10%

90709709363504

Recent energy savings were mainly achieved

by the first sleep mode deliverable, called RF

Sleep Mode, released in 2024 and instant

saving in system power consumption when

the system is in sleep mode. This feature,

combined with additional enhancements,

results in exceeding our target of a 10%

reduction by 2025.

Energy use per wafer pass

Based on the latest measurement of the

NXE:3800E, energy use per wafer pass was

5.5

kWh/wafer – versus our 2025 target of

5.1 kWh/wafer. Despite not reaching our target,

Not achieved<br>	2025 target: -60%

this is an improvement from the 5.9 kWh/

	0%	-20%	-40%	-60%	-80%	-100%
2024
2025

wafer measurement taken in

2024,

primarily

attributable to increased productivity.

155031139589077

The throughput increased from 220 to 230

wafers per hour due to our Productivity

Enhancement Package – Extended (PEP-E),

a bundle of software improvements designed

to increase wafer throughput and improve

energy efficiency in EUV lithography systems.

In all, energy per wafer pass decreased from

5.9 to 5.5 kWh, a reduction of 57% against

our target reduction of 60% versus our 2018

baseline of 12.8 kWh/wafer.

Achieve a 60% decrease (on 2018<br><br>baseline) in equivalent energy<br><br>consumption (kWh/wafer) of our NXE<br><br>systems by 2025

10995116382881

-54%

-57%

While we have made significant progress,

shifts in the EUV product roadmap scope

have impacted our trajectory. The 2025

target of a 60% decrease in energy use per

wafer pass was not fully achieved within the

intended time frame. However, the technical

groundwork we have laid gives us confidence

that we are well positioned to achieve this

target value in the near future, as we aim to

continue our emission reduction journey

beyond 2025. Therefore, we have extended

our target to achieve an energy use per wafer

pass of 4.7 kWh by 2027 – equal to a 63%

decrease in equivalent energy consumption

(kWh/wafer) compared to 2018.

Scope 3 emissions from product use

7696581494763

EXE	PAS	HMI
NXE	XT	Other
NXT	YieldStar
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---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Product use (continued)

Reducing emissions from the use

of sold products

In 2025, total emissions from the use of sold

products were 6,443 kt CO2e, of which EUV

accounted for 3,257 kt CO2e, DUV for 2,824

kt CO2e, and metrology and inspection

systems for 311 kt CO2e.

Between 2019 and 2025, total emissions

from the use of sold products have

increased from 4,374 kt CO2e to 6,443 kt

CO2e, primarily due to the annual increase

in sales volumes and partly offset by our

methodology update of 2024, reflecting

that our customers are sourcing increasing

percentages of low-carbon electricity.

The energy used per wafer pass for

EUV decreased between 2018 and 2025.

Our machines in general are becoming

more energy efficient per output measure,

confirming that we are working on the right

actions toward our energy-efficiency targets.

Our actions and resources

Continuously improving our roadmaps

We continue working on energy-efficiency

improvements for our (future) products,

which requires long lead times and takes

years to achieve. Energy-saving roadmaps

have been developed for all product

categories – and, during 2025, we have

further developed and detailed these

roadmaps toward 2030. For the expected

emission reduction of this key action, we

refer to our Climate Transition Plan.

We monitor progress during quarterly cross-

functional meetings. In addition, we use the

SEMI S23 standard – the Guide for Conservation

of Energy, Utilities and Materials Used by

Semiconductor Manufacturing Equipment –

as a tool to measure and analyze the

energy use of our systems.

It is a positive trend that both internal

stakeholders and our customers are increasingly

aware of the energy consumption of our

products. The prioritization of related aspects

at a product system engineering level is

speeding up progress on our targets. Alongside

our energy-efficiency roadmaps, the gradual

increase in renewable energy uptake by our

customers is instrumental in helping reduce

our product-use emissions.

Progressing our EUV product roadmaps

The EUV light source receives significant

focus in our engineering efforts as it accounts

for the largest share of the total energy

consumption of an EUV system.

We are implementing energy efficiency

improvements in our EUV 0.33 NA (NXE)

product development process according to

our roadmap, which includes plans for:

•Enabling hydrogen (H₂) reuse through

integration with a third-party recovery unit,

enabled by our new (dual-inlet) design of

the gas facility unit.

•Intermittently turning the CO2 drive laser

off for short intervals during system

operation when no EUV light is required,

which has been tested by customers to

confirm our own measurement of ~400 kW

instant saving in system power consumption.

•Making changes in the application of low-

and high-temperature cooling water for the

drive laser on the NXE:3800F.

•Laser gas turbine sleep mode: switching

off or reducing the speed of the driver

laser gas turbines when the system is

not used.

Our EUV product roadmap includes future

improvements for both existing (installed

base) and planned EUV lithography systems,

including our EUV 0.55 NA (EXE) systems.

In 2025, we performed our first SEMI S23

measurement for the TWINSCAN EXE:5000A,

which resulted in energy use per wafer pass

of 25.2 kWh/wafer. This relatively high figure

is explained by the low throughput of 53

wafers per hour at the test, since the system

was not capable of running at full throughput

of currently 110 wafers per hour. In line with

our continued focus on energy reduction for

the new EXE product family, we have set a

target to achieve an energy use per wafer

pass of 8.6 kWh to be achieved by 2028.

Our strong involvement in driving adoption

of high-temperature process cooling water

(HTPCW) has contributed to this becoming

an industry standard for future semiconductor

fabs, and we are actively engaging with

customers to implement this in their new

fabs – with the potential to save ~100 kW,

representing ~8% of total equivalent power

consumption per system.

Together with other semiconductor partners,

we also started the roll-out of solutions to the

installed base to support future hydrogen

reuse.

Progressing our DUV product roadmaps

We have significantly increased customer

engagement – in both the advanced and

mature market segments – in recent years,

with the aim of developing joint roadmaps

toward GHG neutrality.

Although it will not directly lower our scope

3 emissions, which are calculated using

current year sold products, we are also

focusing on improvements related to the

installed base. We introduced an installed

base sustainability roadmap, including

software- and hardware-related upgrades

to reduce energy consumption and CO2

emissions from immersion hoods for the

customers' installed base – further enabling

their GHG reduction ambitions.

We introduced clear governance regarding

Sustainability Product Use in Portfolio and

Product Management, to accelerate on our

GHG emission reduction targets. For DUV

NXT, we have updated our energy reduction

roadmap in 2025 for both new systems and

the installed base, and we are preparing to

define an energy use per wafer pass target

next year.

Metrics will be absolute power use reduction

and energy consumption per wafer pass.

This roadmap includes software- and

hardware-related upgrades, which directly

contribute to our customers’ energy

reduction ambitions. We expect to release

the first immersion system upgrade on

energy efficiency to the market in 2026.

Metrology and inspection

In the context of our metrology systems, we

are actively pursuing energy-saving initiatives

aimed at reducing GHG emissions.

Collaborating closely with industry peers and

partners, we are sharing both knowledge and

technology. The new platform development

roadmaps of our Optical Metrology Systems

roadmap are aimed at reducing overall power

consumption and energy per wafer pass. The

first of these systems is expected to reach

volume in 2026, with further enhancements

planned for each new generation. These

collective efforts support our commitment

to achieving GHG neutrality by 2040.

Within our e-beam metrology and inspection

(HMI) business, energy efficiency has been

a foundational consideration from the earliest

stages of system design for our next-

generation multibeam platform. Our design

enhancements target improved energy

performance across both measurement

and computational functions. We anticipate

launching the first multibeam system with

these energy-efficiency advancements to

the market in the near future.

Computational lithography

In computational lithography, we are

advancing optical proximity correction (OPC)

technologies as part of our broader strategy

for sustainability and operational excellence.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Product use (continued)

By migrating Central Processing Unit (CPU)-

Saving energy by enabling hydrogen reuse

based OPC workflows to GPU acceleration,

we have achieved significant reductions in

Innovation and collaboration are important watchwords as we work to reduce the energy use and emissions

of both our newly built and installed systems. The introduction of sleep mode features and of high-

temperature process cooling water are seeing good results and have the potential to make a big difference

when adopted at scale by customers.

total processing power requirements and

strengthened our ESG outcomes. Ongoing

investment in next-generation GPU platforms

and GPU efficient algorithms will further

minimize the computational footprint

per device layer.

Resources

Following our product roadmaps, we innovate

across our entire product portfolio through

strong investments in R&D. When we design

new systems, we increasingly focus on

reducing energy consumption and cost,

while increasing performance and availability.

The R&D costs are therefore not solely

attributable to our GHG emission reduction

targets, but our product roadmaps always

aim to contribute to ASML’s strategic goals.

The R&D costs related to the design and

manufacturing of our products are reported

as eligible opex under the target activity CE

1.2 Manufacture of electrical and electronic

equipment. When the R&D costs are

capitalized under IFRS, it is part of the

EU Taxonomy capex KPI.

In line with prior years, we aim for R&D

costs to be in the 10–15% range of revenue

in future years. The incremental part of the

financial resources directly contributing to the

achievement of our product use energy-

reduction targets cannot be derived from

our total R&D costs.

Most recently, our engineers have worked

on changes to hydrogen abatement systems

and joined forces with customer fab facilities

teams and strategic suppliers on the functional

introduction of hydrogen recycling for EUV

systems. EUV lithography systems use a

stream of low-pressure hydrogen gas to

protect sensitive optics and keep the system

up and running. Hydrogen management

accounts for more than 20% of an EUV

system’s total energy consumption

The ASML team has developed a dual-inlet

gas facility unit, which supports customer

integration of supplier-provided hydrogen

recovery units. Together, these two elements

provide a new solution for hydrogen reuse,

for which we have provided design and

safety assessment assistance. 80% of the

hydrogen used is due to be recovered,

and 50% of the power associated with

that hydrogen use saved.

This integrated solution has been tested and is

now being gradually introduced to the

installed base of our customers. In November

2025, we were honored to receive the TSMC

Supplier ‘Excellence in Green Manufacturing’

Award, for this and other product energy-

efficiency innovations.

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General disclosures	Environmental	Social	Governance
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Energy efficiency and climate action: Product use (continued)

Looking ahead

We will continue to work on the energy efficiency

of our systems and other product families.

In 2026, we plan to introduce new energy‑

reducing features for our EUV systems: the

release a new Productivity Enhancement

Package, and the roll out the hydrogen

reuse solution to the market

For DUV, we actively engage with our

customers, on our product roadmaps for

both ASML’s and our customers’ GHG

neutrality ambitions.

Semiconductor Climate Consortium (SCC)

We are a founding member of

the SCC. Established in November

2022, the SCC aims to address the

challenges of climate change and

speed up the industry’s efforts to

reduce GHG emissions throughout

the value chain.

The consortium’s members are committed

to working toward the following pillars

and objectives:

•Transparency – Publicly report progress

and scope 1, 2 and 3 emissions annually.

•Ambition – Set near- and long-term

decarbonization targets with the aim

of reaching GHG neutrality by 2040.

•Collaboration – Align on common

approaches, technology innovations and

communication channels to continuously

reduce GHG emissions in the value chain.

The SCC is ultimately responsible for

monitoring and reviewing progress

toward these ambitions. In 2023, the

SCC published an in-depth analysis of

the semiconductor value chain’s carbon

footprint and priority-ranked carbon

emission sources for the industry – acting

as the baseline for value-chain emissions.

ASML is an active contributor to the SCC.

We are co-leading the BAR (Baselining,

Ambition-Setting and Roadmapping)

consortium working group and are actively

participating in other working groups by

sharing data and information, and by

facilitating sessions.

Customers, ICT and society

The technology pioneered by our R&D teams and partners sits at the heart of global digitalization – and has the potential to transform how we all live and work. We enable our customers to innovate the semiconductor technologies that can help humanity manage its challenges and seize opportunities by facilitating sustainable living and e-mobility, accessible healthcare, food security and the transition to renewable energy. Our customers’ products are used in a wide variety of applications, impacting society’s GHG emissions both positively and negatively – particularly when taking into account the rapid adoption and increasing integration of generative AI capabilities. In collaboration with the industry, we aim to have a better understanding of the GHG emissions caused by the use of our customers’ products. We do this, for example, by being a member of the SCC, where we actively engage with our customers on climate-related matters. We do not measure emissions downstream beyond our customers and have no targets on these, because this is outside the scope of our GHG reporting boundary.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Metrics table

					Climate Transition Plan targets
Topic	Description	Base year<br><br>2019	2024	2025	Target year<br><br>2025	Target year<br><br>2030	Target year<br><br>2040
Scope 1 GHG emissions (in ktCO2e)	Gross scope 1 GHG emissions	22	24	25
	Percentage of scope 1 GHG emissions from regulated emissions trading schemes		N/A	N/A
Scope 2 GHG emissions (in ktCO2e)	Gross location-based scope 2 GHG emissions1	176	228	151
	Gross market-based scope 2 GHG emissions	38	9	1
	Subtotal of gross scope 1 and market-based scope 2 GHG emissions	60	33	26	45	15	6
Significant scope 3 GHG emissions<br><br>(in ktCO2e)	Total gross indirect (scope 3) GHG emissions	7,578	11,961	11,617	15,700	19,500	2,300
	1 Purchased goods and services	2,546	4,415	4,373
	2 Capital goods	295	536	408
	3 Fuel and energy-related activities (not included in scope 1 or scope 2)	10	13	9
	4 Upstream transportation and distribution	213	322	302
	5 Waste generated in operations	1	2	2
	6 Business traveling	97	65	32
	7 Employee commuting	42	36	45
	11 Use of sold products	4,374	6,569	6,443
	12 End-of-life treatment of sold products	0.1	0.2	0.3
	15 Investments2	0	3	3
	Percentage of scope 3 GHG emissions calculated using primary data		2.5%	2.6%
Total GHG emissions (in ktCO2e)	Total GHG emissions (location-based)		12,213	11,793
	Total GHG emissions (market-based)		11,994	11,643				Topic	Description	2025
---	---	---
Carbon credits (in ktCO2e)	Carbon Credits cancelled in the reporting year	104
	Percentage of share of carbon credits from removal projects	100%
	Percentage of share of carbon credits from recognized quality standards (registered with the ACR)	100%
	Percentage of share of carbon credits from projects within the EU	—%
	Percentage of share of carbon credits from projects within the US	100%
	Percentage of share of carbon credits that qualify as corresponding adjustments	—%
	Carbon credits planned to be cancelled in the next reporting year based on existing contractual agreements	101

1.We have revised baseline scope 2 location‑based emissions from 145 to 176, with no impact on our target trajectory as this is set using market‑based emissions.

2.We have changed the preparation of scope 3 category 15 and have updated our comparative figures accordingly. Read more in Sustainability statements – Energy efficiency and climate action: Additional disclosures – Methodology on metrics

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General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Metrics table (continued)

Topic	Description	2024	2025
Energy consumption (in MWh)	(1) Fuel consumption from coal and coal products	0	0
	(2) Fuel consumption from crude oil and petroleum products	690	38
	(3) Fuel consumption from natural gas	102,815	108,549
	(4) Fuel consumption from other fossil sources	0	0
	(5) Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources	17,517	3,251
	(6) Total fossil energy consumption (calculated as the sum of lines 1–5)	121,022	111,838
	Percentage share of fossil sources in total energy consumption	20.8%	17.5%
	(7) Consumption from nuclear sources	3,094	0
	Percentage share of consumption from nuclear sources in total energy consumption	0.5%	0.0%
	(8) Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biological origin, biogas,<br><br>renewable hydrogen, etc.)	0	0
	(9) Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources	457,368	525,147
	(10) The consumption of self-generated non-fuel renewable energy	760	2,600
	(11) Total renewable energy consumption (calculated as the sum of lines 8–10)	458,128	527,747
	Percentage share of renewable sources in total energy consumption	78.7%	82.5%
	Total energy consumption (calculated as the sum of lines 6, 7 and 11)	582,244	639,585	Topic	Description	2024	2025
---	---	---	---
Energy intensity<br><br>per net revenue1	Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/€m revenue)	20.6	19.6	Topic	Description	2024	2025
---	---	---	---
GHG intensity1	Total GHG emissions from scope 1, 2 and 3 (location-based) per net revenue (tCOeq/(€m revenue)	432	361
	Total GHG emissions from scope 1, 2 and 3 (market-based) per net revenue (tCOeq/(€m revenue)	424	356
	Total GHG emissions from scope 3 (market-based) per gross profit (tCOeq/(€m gross profit)	825	669

1.Net revenue derived from Financial statements – Consolidated financial statements – Consolidated statements of operations – Total net sales

Topic	Description	2024	2025
Energy attribute certificates<br><br>(in MWh)	Guarantees of Origin (GOs)	313,250	350,694
	Renewable energy certificates (RECs)	110,501	117,062
	International renewable energy certificates (I-RECs)	3,786	5,807
	Taiwan renewable energy certificates (T-RECs)	20,463	34,411
	Korea renewable energy certificates (K-RECs)	8,000	17,173
	Total energy attribute certificates	456,000	525,147

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General disclosures	Environmental	Social	Governance
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Energy efficiency and climate action: Metrics table (continued)

Platform	DUV immersion
System type	NXT:1980Di	NXT:2050i	NXT:1980Ei	NXT:1960Bi +<br><br>PEP-B	NXT:2100i	NXT:1980Fi	NXT:2150
Year of energy measurement	2015	2020	2021	2021	2022	2023	2024
Power consumption (in MW)	0.16	0.16	0.16	0.15	0.16	0.17	0.17
ATP throughput (in wph)	275	295	295	250	295	330	310
Energy use per wafer pass (in kWh)	0.59	0.54	0.56	0.60	0.55	0.52	0.55
Platform	DUV dry
System type	XT:1460	NXT:1470	XT:860N	NXT:870	XT:400M	NXT:870B H200	XT:260 A100
Year of energy measurement	2020	2020	2022	2022	2023	2025	2025
Power consumption (in MW)	0.07	0.13	0.07	0.13	0.07	0.17	0.06
ATP throughput (in wph)	209	277	260	330	250	401	276
Energy use per wafer pass (in kWh)	0.34	0.47	0.27	0.38	0.30	0.42	0.22
Platform	YieldStar				HMI
System type	YS380	YS385	YS500	YS500	eScan1100	eP5XLE	eP6	eP6
Year of energy measurement	2020	2023	2024	2025	2023	2024	2024	2025
Power consumption (in MW)	0.01	0.01	0.01	0.01	0.06	0.02	0.01	0.01
Platform	EUV<br><br>30 mJ/cm2 dose						EUV<br><br>50 mJ/cm2 dose
System type	NXE:3400B	NXE:3400C	NXE:3600D	NXE:3600D	NXE:3800E	NXE:3800E	EXE:5000A
Year of energy measurement	2018	2020	2021	2023	2024	2025	2025
Power consumption (in MW)	1.44	1.31	1.32	1.23	1.31	1.26	1.37
ATP throughput (in wph)	112	136	160	160	220	230	53
Energy use per wafer pass (in kWh)	12.8	9.6	8.3	7.7	5.9	5.5	25.8

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Energy efficiency and climate action: Additional disclosures

‘

Methodology on targets

In this section, we elaborate on the methodology

and assumptions used in formulating our targets

and indicators related to our ESG theme Energy

efficiency and climate action.

As part of our climate ambitions, we have

developed net and gross emissions-reduction

targets. Net targets may include carbon offsets

or credits, and align with our ambitions to become

GHG neutral by 2025, 2030 and 2040 for different

emission categories. Gross emissions reduction

targets do not include carbon offsets or credits

and provide insight into emissions reductions

achieved by reducing energy usage and

switching to renewables.

In line with guidance from SBTi and ESRS,

we make a distinction between absolute targets for

our scope 1 and 2 emissions and intensity targets

for our scope 3 emissions. Absolute emissions-

reduction targets provide insight into the total

emissions, and intensity targets are relative to

an economic metric for which ASML uses the

‘unit of value added’ (gross profit in accordance

with US GAAP).

We consider 2019 to be most representative

base year as, for the years after, our operations

were impacted by the COVID-19 pandemic.

We have also developed some additional topic-

specific targets that support us in driving actions

to reduce our CO2e emissions.

The above methodology results in the following

set of targets:

GHG neutrality targets

Become GHG neutral for scope 1 and 2 emissions

from our manufacturing and buildings by 2025

This target is measured in kilotonnes (kt) CO2e.

To calculate scope 2 GHG emissions we use

the market-based method.

As of 2024, we report on all buildings owned or

leased by ASML. The baseline value has been

updated accordingly.

Reconciliation with other disclosures in the

annual report

The LTI disclosed in the Board of Management

remuneration includes the LTI ‘Net zero emissions

(scope 1+2) with minimum compensation’. This LTI

was set in 2023 according to the scope applicable

then. The scope of this LTI differs from the gross

scope 1 and 2 emissions in the Sustainability

statements, where we report on all buildings and

include Hydrofluorocarbon (HFC) emissions.

Also, the LTI uses ‘net zero’ terminology. As this

LTI performance metric was set in 2023, we kept

‘net zero’ terminology in the Board of Management

remuneration section, although it should be

interpreted as ‘GHG neutral’ used throughout the

Sustainability statements.

Become GHG neutral for scope 3 emissions from

business travel (category 6) and employee commuting

(category 7) by 2025

In the 2019 base year we only modeled emissions

from employee commuting in detail for our

Veldhoven campus in the Netherlands – for

example, by distinguishing different transport

modes and registering actual commute days.

For other locations around the world where we

operate, as a generalization we assumed that

everyone commutes by car every day. In 2024

we started obtaining more accurate data for some

of these other locations, which has continued in

Such granularity will be further extended

to all our locations worldwide in the coming years

to improve our methodology.

Become GHG neutral for scope 3 emissions related to

purchased goods and services including capital goods

(categories 1 & 2) and related to logistics (category 4) by

2030

This target is measured in kilotonnes CO2e. The

baseline value for purchased goods and services

is the gross scope 3 category 1 and 2 emissions

of 2,841 kt in 2019. For logistics, the baseline is

the gross scope 3 category 4 emissions of 213 kt

in 2019.

Become GHG neutral for all scope 3 emissions

(all categories) by 2040

This target is measured in megatonnes (Mt) CO2e.

The base year 2019 is representative, as the

emissions per €m gross profit can be considered

‘normalized for growth’.

This target covers both the upstream and

downstream parts of the value chain, following

the definitions of the GHG Protocol.

E1-4 Gross emissions reduction targets

Reduce absolute gross scope 1 and 2 GHG emissions

by 25.2% by 2025 as compared to the base year 2019

(SBTi near-term target)

This target is measured in kilotonnes CO2e and

translates into an absolute target value reduction

to below 45 kt. The baseline value is the gross

scope 1 and 2 emissions of 60 kt in 2019.

As a specific pathway for the ICT sector does not

yet exist, this target has been set by SBTi using

the ‘other industries’ pathway. ASML is included

in the SBTi’s externally published list.

Reduce absolute gross scope 1 and 2 GHG emissions

by 75% by 2030 as compared to the base year 2019

(SBTi near-term target)

This target is measured in kilotonnes CO2e and

translates into an absolute target value reduction

to below 15 kt. It has been set by considering the

SBTi ‘other industries’ pathway, and ultimately

choosing an even more ambitious one.

The target has also been set based on an internal

feasibility assessment, taking into account the

2026–2030 energy savings master plan.

Reduce absolute gross scope 1 and 2 GHG emissions

by 90% by 2040 as compared to the base year 2019

(SBTi long-term target)

This target is measured in kilotonnes of CO2e and

translates into an absolute target value reduction

to below 6 kt. It has been set by SBTi using the

‘other industries’ pathway.

Reduce scope 3 GHG emissions by 35.3%

per €m gross profit by 2025 from a 2019 base year

(SBTi near-term target)

This target is measured as scope 3 emissions

intensity in kilotonnes CO2e per €m gross profit.

It equals 0.93 kt/€m gross profit in 2025 and is

aimed at CO2e emissions below 15.7 Mt by 2025.

The target covers both the upstream and

downstream parts of the value chain, following

the definitions according to the GHG Protocol,

and exclusively pertains to scope 3 emissions –

which constitute around 99.8% of our total gross

value chain emissions.

The baseline value in 2019 was 7.6 Mt CO2e,

with a value of 1.44 kt CO2e per €m gross profit.

The absolute target was derived from scope 3

emissions intensity reduction according to the

SBTi ‘other industries’ pathway (7% year-on-

year reduction), combined with guidance for our

gross profit in 2030 based on Investor Day 2024

information. We use the mid-scenario of the gross

profit outlook to balance the assumptions made.

This target is validated and approved by the

SBTi, under the ‘near-term’ category.

Reduce scope 3 GHG emissions by 55% per

€m gross profit by 2030 from a 2019 base year

(SBTi near-term target)

This target follows the same logic and is

measured as scope 3 emissions intensity in

kilotonnes CO2e per €m gross profit in

accordance with US GAAP. In order to achieve

our intensity reduction target by 2030, we aim for

CO2e emissions below 19.5 Mt by 2030.

Reduce scope 3 GHG emissions by 97% per

€m gross profit by 2040 from a 2019 base year

(SBTi long-term target)

This target follows the same logic and is

measured as scope 3 emissions intensity in

kilotonnes per €m gross profit. In order to achieve

our intensity reduction target by 2040 we aim

for CO2e emissions below 2.3 Mt. The target

was derived from the scope 3 emissions intensity

reduction pathway according to the SBTi.

Sub-topic-specific targets

Achieve energy savings of 100 TJ from energy-saving

projects in our own operations worldwide by 2025

This target is measured as cumulated TJ savings

as of the start of our five-year plan in 2021.

Energy savings represent the reduction in energy

consumption achieved through capital investments

that optimize existing infrastructural and technical

installations. Savings are calculated as the difference

between the verified energy use before and after

the implementation of efficiency measures.

Savings are cumulated, and are accounted for

after completion of the individual energy saving

projects. Therefore, they are not comparable

between years.

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Energy efficiency and climate action: Additional disclosures (continued)

Purchase 100% renewable electricity for our

own operations worldwide by 2025

This target is measured as the percentage of

renewable electricity purchased (including energy

attribute certificates) versus our total electricity

consumption. It pertains exclusively to scope 2

emissions, for which we use market-based

emission factors.

Get commitment from our top 80% suppliers (based on

CO2e emissions) to reduce their CO2e footprint by 2030

This target is calculated as the percentage of our

suppliers (based on CO2e emissions) who signed

a letter of commitment or made a public

statement to reduce their CO2e footprint by 2030.

Our top 80% suppliers are those who, according

to spend-based emission calculations, together

account for 80% of our total supplier emissions

and is updated on a yearly basis. Progress is

monitored as of 2024, when the program started.

In 2025, we updated our calculation methodology

to introduce greater granularity in categorizing the

different types of GHG reduction commitments

set by our suppliers. Our key assumption

incorporated is that supplier spend-based

emissions grow proportional to ASML toward

2030, based on the sales and gross margin

guidance from the Investor Day 2024. We apply a

fixed allocation of 10% scope 1 and 2 emissions

and 90% scope 3 emissions, based on the

distribution observed in the baseline dataset. This

update in methodology resulted in an increase

of commitment by suppliers from 9% to 17%

in the comparative year 2024.

Achieve a 10% decrease (on 2018 baseline) in

absolute equivalent power consumption (MW)

of our NXE systems by 2025

This target is calculated as the percentage

decrease in absolute (total equivalent) power

consumption in MW. The 2018 baseline value

is 1.44 MW. Selecting 2018 as a base year for

both targets is representative because the

TWINSCAN NXE:3400B (shipped that same year)

was the first high-volume manufacturing EUV

lithography system capable of exposing more than

100 wafers per hour. As the baseline is more closely

tied to a machine type than a specific year,

averaging over multiple base years does not apply.

Energy use per wafer pass

We measure power consumption based on

SEMI S23 standards for our latest system

generations during full production, idle and sleep

states. Equivalent energy consumption (kWh)

represents the amount of energy a lithography

system consumes under defined SEMI S23 test

conditions, converting all consumption—including

electricity, cooling, and gas flows—into an

equivalent kWh value. All power‑saving measures

are incorporated into the SEMI S23

measurements from the moment they become

available to our customers. For EUV NXE,

we include source, scanner, laser, PVAC and

abatement, and relevant cabinets. For DUV NXT,

we include scanner, laser, and all gas and

water supplies. Energy efficiency is reflected

in kWh per wafer pass. Productivity (wafer

passes) we measure as ATP (acceptance test

protocol) throughput.

Achieve a 60% decrease (on 2018 baseline) in equivalent

energy consumption (kWh/wafer) of our NXE systems

by 2025

This target is calculated as percentage

reduction of the energy use in kWh per wafer

pass, with a 2018 baseline value of 12.8 kWh.

Power consumption is measured as outlined

in the previous target. Any impact of power

saving measures and productivity enhancements

are accounted for in the results from the moment

they are available to our customers

Methodology on metrics

This section outlines the methodology

used to quantify and report our climate action

performance. For scope 1 and 2 emissions

reporting, we use the ESRS and consider the

principles, requirements and guidance provided

by the GHG Protocol Corporate Standard:

•Scope 1 is defined as direct emissions

occurring from sources we own or control.

•Scope 2 is defined as indirect emissions from

the generation of electricity, heat or steam

generated offsite but purchased by ASML.

For scope 3 reporting, this is supplemented with

the Corporate Value Chain (scope 3) Accounting

and Reporting Standard.

E1-5 Energy consumption and mix

Energy consumption is expressed in MWh and

includes fossil fuel and electricity consumption

for energy purposes in the reporting period. For

all significant manufacturing and office locations,

data from the energy supplier is used. For leased

office locations where energy supplier data is not

available, consumption is estimated based on the

square meters leased and multiplied by our weighted

average energy consumption (kWh/m2) converted

to MWh using standard conversion factors.

To estimate total energy consumption from

nuclear sources, the amount of non-renewable

generation is multiplied by the share of nuclear

energy per location based on World Nuclear

Association data.

The sector in which we operate is considered one

of high climate impact based on NACE code

29.99, so all energy consumption and net revenue

from the reporting year is included in the energy

intensity calculation.

E1-6 Gross scopes 1, 2 and 3 and Total

GHG emissions

Scope 1 and 2 GHG emissions

We calculate our scope 1 emissions by multiplying

fuels used by their respective emission factors and

determining our process emissions.

Market-based emission factors are based on

supplier emission rates. For scope 2 emissions,

we use market-based emission factors – which

are zero for countries where we buy renewable

energy. In countries where we do not yet buy

renewable energy, we use supplier emission

factors when available. For a few locations where

supplier emission rates are not available, we use

a conservative approach – taking location-based

emission factors to calculate market-

based emissions.

•The CO2e footprint consists mainly of the

combustion of fossil fuels (of which only natural

gas is material for ASML) and a small portion of

fuel consumption of lease cars and CO2

process gas from immersion systems. Natural

gas is calculated by multiplying the

consumption by conversion factors from IPCC.

Hydrofluorocarbon (HFC) emissions from

cooling‑agent leaks are included in scope 1.

•Scope 1 and 2 emissions are calculated for all

locations within our operational control. The full

consolidated accounting group is in the

operational control group, including

leased locations.

•Emissions from our owned and leased

transportation are reported in scope 1 (fuel

combustion and hybrid cars) and scope 2

(electric vehicles).

•We report GHG emissions in kilotonnes of

carbon dioxide equivalents (kt CO2e).

Calculation methodology

•Emission factors are used to convert an activity

(such as purchased electricity in kilowatt-hours)

to GHG emissions. We use suitable and

consistent emission factors from the IEA and

IPCC where applicable.

•For market-based reporting, priority is given to

supplier emission factors in accordance with

GHG Protocol Scope 2 Guidance.

•The quantification methodologies are in

accordance with best practice as followed by

the GHG Protocol.

•We review appropriate emission factors

annually to ensure the most up-to-date

are used.

•Global Warming Potentials for our inventory are

identified from the IPCC Sixth Assessment

Report using 100-year values.

•Biogenic emissions are not applicable for ASML.

•For fuel combustion and hybrid lease cars

included in scope 1, emissions are calculated

based direct (Europe) or average (other

locations) mileage provided by the lease

company and emission factors from the

European Environment Agency.

Scope 2 GHG emissions

Our overall electricity consumption, reported by

applying the market-based method, uses the

GHG Protocol hierarchy of emission factor

assignment:

Applying contractual instruments.
Supplier-specific emission factors where

provided by vendors.

Residual mixes for markets where available.
Using regional or national grid factors for the

balance of the portfolio.

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Energy efficiency and climate action: Additional disclosures (continued)

Under the location-based method, only regional

and national grid mixes are utilized, and renewable

energy has no effect or benefit to emission figures.

Our renewable electricity consists of two

components: on-site generation and voluntary

purchases of renewable energy. For on-site

generation (such as solar), renewable energy

is metered separately and included in our total

consumption – although it is considered to

attribute zero scope 2 emissions.

Energy attribute certificates

Voluntary purchases include that of bundled

and unbundled renewable energy certificates

(GOs, RECs, I-RECs, K-RECs and T-RECs) and

renewable energy contracted through energy

providers. Only certificates that meet the quality

criteria (geographical relevance, temporal

matching, and technology relevance) and that are

valid for the reporting year, issued by recognized

registries, and retired in our name are included.

Scope 3 GHG emissions

Scope 3 emissions include 15 categories according

to the GHG Protocol Corporate Value Chain

(scope 3) Accounting and Reporting Standard,

of which 10 categories are material within our

value chain.

Scope 3 GHG emissions can be identified as:

•Gross emissions: The sum of the CO2e

emissions of the aforementioned categories.

•Net emissions: Gross emissions minus carbon

credits purchased.

Emission factors are applied to convert the specified

amount of energy, material or activity to metric

tonnes of CO2e. Their selection is based on the

calculation method, following the recommendations

of the GHG Protocol by scope 3 category.

We use our environmental management system

(EMS) to calculate and monitor energy use and

emissions, improve performance and enhance

efficiency across our global operations. The EMS

is integrated into the overall environmental, health

and safety (EHS) management system operated

by all ASML locations. It was recertified for ISO

14001 (the standard for such systems) for three

years in 2023 and structured in accordance with

ISO 45001 (the standard for occupational health

and safety management systems) requirements.

For category 1 and 2, emissions are calculated

using actual spend data. Category 11 is

calculated with actual sales data. Other

categories are based on actual Q1–3 data and

estimated Q4 data.

Category 1: Purchased goods and services

Producing our products requires us to purchase

multiple modules, parts and services. This category

includes all upstream (cradle-to-gate) emissions

of purchased goods and services.

We apply the spend-based method to estimate

emissions for purchased goods and services.

We collect data on the economic value of goods

and services purchased each quarter and then

multiply these by the relevant secondary

emission factors.

To identify these secondary factors, we use the

industry codes declared on the purchase order,

which are linked to the emission factors via the

Standard Industry Classification (SIC) codes used

in the emission factors of DEFRA version 2011.

These are updated annually using the Bank of

England’s average inflation figure.

Category 2: Capital goods

Multiple physical assets are also purchased.

This category includes all upstream (cradle-to-

gate) emissions of purchased capital goods.

We apply the spend-based method to estimate

the associated emissions, and collect data on

the economic value of capital goods and multiply

them by relevant secondary emission factors (for

example industry average). Capital goods have

been defined following our financial accounting

principles, and are not double-counted in

category 1. The industry codes are linked to

the emission factors, similarly to category 1.

Category 3: Fuel and energy-related activities

Fuels and energy are purchased in order to operate.

This category includes all upstream (cradle-to-

gate) emissions of purchased fuels and electricity

(from raw material extraction up to the point of,

but excluding, combustion). Using the average-

data method, we estimate emissions by using

secondary emission factors.

In this category we take into account:

• Upstream emissions of purchased fuel

• Upstream emissions of purchased electricity

• Transmission and distribution losses

The IEA Life Cycle Upstream Emission Factors

(2023, updated every 3 years), DEFRA (2025) and

the National Renewable Energy Laboratory Life

Cycle Greenhouse Gas Emissions from Electricity

Generation Update (2021) emission factor

databases are used.

Category 4: Upstream transportation and distribution

Transportation and distribution services are

purchased in order to operate. This category

includes emissions of transportation and

distribution providers that occur during use

of vehicles and facilities. We include all third-

party transportation and distribution services

purchased, including inbound and outbound

transportation and distribution between our

own facilities.

Around 90% of the emissions are reported by

the forwarders (tier 1 logistic suppliers). We

directly receive emissions reports from our major

logistics suppliers – they use EcotransIT, where

emissions are estimated using the distance-

based method. Reports include air, road and

marine transport, and storage of purchased

products in warehouses and distribution centers.

For each shipment the factors considered are

based on transportation type and route. We have

not included the multiplier effect of air travel on

radiative forcing. Gross air travel emissions

include SAF usage.

The remaining emissions are estimated by

extrapolating warehouse and distribution emissions

provided by distribution providers over the

remaining warehouse and distribution capacity.

Category 5: Waste generated in operations

Waste is generated as part of our operations

and includes emissions that occur during the

disposal or treatment of our waste at suppliers.

Using the waste-type-specific method, we use

emission factors per waste type and treatment

method. We differentiate landfill, incineration and

recycling treatment activities for each waste type,

which are reported as part of our Circular Economy

metrics. Waste treatment type is provided by the

waste haulers contracted. The emission factors from

Ecoinvent v3.12 and DEFRA (2025) are used.

Category 6: Business travel

Business travel is conducted for sales, customer

support and operational activities. This category

includes emissions of transportation carriers

during use of any transport mode, and those

caused by hotel stays during business travel.

•Air travel: gross emissions are reported to us

directly from our travel suppliers. We have not

included the multiplier effect of air travel on

radiative forcing. Gross air travel emissions

include SAF usage.

•Hotel stays: We take hotel nights stayed and

apply emission factors for the average energy

use per hotel night in different countries.

•Car rental: We use the distance-based

method. We receive the number of rental

days from the rental car company, assume

an average distance (100 km/day) and multiply

this by the corresponding emission factor

(distance-based).Taxi and public transportation:

We apply the spend-based method, which

involves determining the spend on transport

and applying secondary (spend-based)

emission factors.

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Energy efficiency and climate action: Additional disclosures (continued)

The DEFRA emission database (2025) is used

for air travel, hotel and car. Public transport and

taxi-spend-based emission factors are similar

to those under category 1.

Category 7: Employee commuting

Our employees commute to our offices and

manufacturing locations. This category includes

emissions that occur during use of vehicles or

other transport modes when commuting.

We use the distance-based method, which

involves collecting data on:

•Average amount of employees present at the

office, based on badge-swipe numbers.

•Mode of transport: We differentiate between

seven transport modes (bike, car, carpooling,

motorcycle, public transport, scooter and

shuttle bus).

•Fuel: Depending on the transport mode, we

differentiate between electric, diesel, petrol

and hybrid.

•Commuting distance.

Total emissions are obtained by withdrawing the

emissions from leased cars calculated in scope 1

and 2. Emission factors are obtained from

CO2emissiefactoren.nl, DEFRA (2025) and the

IEA database. If a suitable emission factor is not

available, we use the IEA database to extrapolate

this using cross-multiplication (only applicable

for EVs).

Category 8: Upstream leased assets

No leased assets are operated outside of those

reported in scope 1 and 2.

Category 9: Downstream transportation and distribution

Downstream transportation and distribution

emissions are not applicable, since category 4

(upstream) already includes all inbound and

outbound logistic emissions.

Category 10: Processing of sold products

Our products do not require intermediate

processing.

Category 11: Use of sold products

Operating our products requires significant

energy. This category includes the direct use-

phase emissions of sold products over their

expected lifetime at our customers’ sites.

We estimate direct use-phase emissions by

measuring the energy use of our products and

calculating the GHGs emitted during use, and

apply an estimated lifetime of 20 years for each

system. This estimate is based among others on

current service policies, service contracts in place

and actual lifetime data observed to date. The

estimated lifetime carries inherent uncertainties,

for instance with regard to the technical, commercial

and economic viability of lifetime extensions.

Mature DUV systems provide historical lifetime

data, whereas EUV systems, being relatively

new, offer limited historical insight.

We estimate the annual energy consumption of

each product based on the common production

and idle time percentages, obtained by customer

survey data and verified and evaluated every

two years by our development and engineering

department. The figure obtained is then multiplied

by the lifetime of 20 years. Some of our products

also consume CO2 during use. The amount

consumed is calculated over the lifetime and

added to obtain total emissions.

Emissions from computational lithography solutions

are estimated for the reporting year for the effective

active licenses. Annual energy use is determined

by multiplying active licenses by average utilization

rates (effective active license days) and measured

power (including air conditioning).

For emission factors, we differentiate the

products sold to five of our largest customers.

Here, we multiply energy consumption by the

customer emission factor (obtained from their

2024 annual report) to obtain total emissions.

This emission factor is general per customer

and does not differentiate between countries.

For the products sold to other customers, we

apply country-based emission factors from

the IEA (2025) database to convert energy

consumption into emissions.

Category 12: End-of-life treatment of sold products

End-of-life products require treatment once

they are no longer in service. This category

includes emissions that occur during the end-of-

life treatment of sold products. We differentiate

between metal and non-metal components and

estimate the mass fraction for each system on a

family level (for example EUV NXE, and DUV NXT

and XT). We apply emission factors for specific

waste types and waste treatment methods.

The Ecoinvent v3.12 database is used.

Category 13: Downstream leased assets

ASML assets are not leased to other entities.

Category 14: Franchises

ASML does not operate franchises.

Category 15: Investments

Our company has investments in two associates

and made an equity investment this year. This

category includes the emissions not already

included in scope 1 or scope 2 associated with

those investments in the reporting year. For

HighTechXL Group B.V. and Mistral AI, this is

calculated using the average-data method from

GHG Protocol. For Carl Zeiss SMT Holding GmbH

& Co. KG, we directly receive our share in their

scope 1 and 2 emissions — which is multiplied by

our equity stake. Since they are also a key

supplier, and to avoid double-counting, these

emissions are deducted from scope 3 category 1.

The reclassification impact is 3 kt.

Primary data in scope 3

We only have primary data from suppliers for

categories 4 and 6. To calculate the percentage,

we divide these categories considering the

percentage of primary data input over all material

scope 3 categories. In addition, we use our CO2e

emissions dashboard to monitor progress on all

types of CO2e emissions quarterly via a dedicated

performance management tool.

Changes in preparation and presenting comparative

information: Scope 3

In 2025, methodological changes and

improvements, as well as revisions were made in

scope 3 categories as follows:

•We identified duplicates in certain 2024 capital

goods emissions (category 2). We revised the

comparative figure resulting in a decrease of

0.7% on total scope 3 emissions (82 kt).

•The warehouse and distribution emissions

(category 4) not directly received from our

forwarders are as of this reporting year included

by extrapolating warehouse and distribution

emissions provided by distribution providers

over the remaining warehouse and distribution

capacity. This resulted in an increase of 0.1%

on total scope 3 emissions (18 kt).

•We now receive all air travel emissions data

(category 6) directly from our travel suppliers.

This update in methodology resulted in a

decrease of 0.1% on total scope 3 emissions

(12 kt).

•We improved the accuracy of our commuting

emissions data (category 7) transitioning

from estimating office presence to direct

data through a more consistent global rollout

of badge-swipe tracking and by including

weekend badge swipes, which were previously

assumed to be zero. This update in data

accuracy resulted in an increase of 0.1%

on total scope 3 emissions (11 kt).

•We developed the estimation methodology

for and included emissions from computational

lithography solutions (category 11). This resulted in

an increase of 0.3% on total scope

3 emissions (34 kt).

•We report our share in the scope 1 and 2

emissions from our investees in category

15, and adjusted scope 3 category 1 to avoid

double-counting for associates that are also

suppliers. This results in a reclassification of

3 kt. The comparative figure has been

updated accordingly.

E1-7 GHG mitigation projects financed

through carbon credits

The information regarding the total amount

of carbon credits, information on the removal

projects, verification against recognized quality

standards and carbon credits planned to be

canceled in the next reporting period based

on existing contractual agreements are

provided by our carbon credit supplier.

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Energy efficiency and climate action: Climate resilience analysis

By the beginning of 2024, for the first time,

global warming had exceeded 1.5°C across

an entire year, according to the EU’s

Copernicus Climate Change Service. It is

expected that if society continues to emit

GHGs at current rates, global warming will

speed up – and that temperature rises of

more than 1.5°C, relative to the pre-industrial

period, could have major economic,

environmental and social consequences.

Since 2020, we have assessed climate-related

risks and opportunities for our strategy and

business model. With the introduction of the

Corporate Sustainability Reporting Directive

(CSRD) and the accompanying European

Sustainability Reporting Standards (ESRS), we

report on our resilience analysis of our strategy

and business model in relation to climate

change, for which we use our climate scenario

analysis. We will also publish a separate report

aligned with the Task Force on Climate-related

Financial Disclosures (TCFD) guidelines.

We used a scenario analysis (considering

a 1.5°C scenario up until 2030 and a 4°C

scenario up until 2050) to identify and assess

climate-related risks and opportunities that

could have a substantial financial impact

on our organization.

Then, we analyzed whether our strategy and

business model were resilient to the effects

of these scenarios based on the mitigation

measures in place. Our conclusions provide

further insight into our capacity to address

our material climate-related risks and

how we can take advantage of our

material opportunities.

For our governance around climate-related

risks and opportunities, we refer to the

General disclosures section in our Annual

Report – which also describes our processes

surrounding potential climate-related risks

and opportunities and their potential impact

on our strategy and business model. There

we disclose how we identify, assess and

manage climate-related risks and opportunities,

and the metrics and targets we use to assess

and manage relevant climate-related risks

and opportunities. The identified climate-related

risks and opportunities are integrated into our

enterprise risk management (ERM) process.

Assessing climate-related impacts, risks

and opportunities

In 2025, we have updated our 1.5°C scenario

analysis by conducting an additional review

in collaboration with our risk team and internal

subject matter experts, to determine our

exposure to transition risks toward 2030

and the potential anticipated financial effects.

For the 4°C scenario, we used the outcomes

of the assessment conducted in 2024 as the

long-term effects of climate change do not

change year on year. We will update our full

scenario analysis every two years.

Our climate scenario analysis provided no

indications requiring changes in our asset

valuations in the Consolidated financial

statements.

Selected climate scenarios for our

resilience analysis and methodology

Transition risk: 1.5ºC scenario

For this scenario we use the International

Energy Agency (IEA) Net Zero Emissions

by 2050 Scenario. A 1.5°C scenario would

only occur if society managed swift

decarbonization in the coming decades,

resulting in more pronounced transition risks.

This scenario looks at the policy and legal,

market and economic, technology and

reputation risk categories. The impact on

both our assets and business activities is

taken into consideration. It considers a time

horizon until 2030 (medium term), in line with

ASML’s overall strategy and risk time horizon.

Physical risk: 4.0ºC scenario

For this scenario we use the Intergovernmental

Panel on Climate Change (IPCC) RCP 8.5

Scenario. This scenario would occur if society

fails to decarbonize, resulting in more

pronounced physical risks. The data model

covers the relevant hazard categories for

ASML and aligns with the guidance provided

by ESRS (temperature-, wind-, water- and

solid-mass-related hazards). The likelihood,

magnitude and duration of the hazards are

taken into consideration. In our assessment,

we consider the climate change effects as

projected in 2030 (medium term) and 2050

(long term). The 2050 time horizon is included

for this scenario since physical risks could

pose a greater threat in the long term if the

world fails to decarbonize.

The IEA and the IPCC are widely regarded

as credible sources due to their rigorous

methodologies and global expertise. Both

organizations ensure their scenarios are

grounded in the latest scientific consensus

and practical policy considerations, making

them reliable for scenario analysis in climate-

related decision-making. The scenarios

represent two extreme temperature pathways,

allowing for complete risk and opportunity

mapping in the scenario analysis – including

the full breadth of potential impacts on ASML.

These scenarios are not exact forecasts or

precise predictions, but rather highlight central

elements of a possible future that help guide

our resilience analysis.

Methodology

In terms of scope, our analysis considers

climate-related physical and transition risks

and opportunities and their potential effects

on our operations and value chain (including

upstream and downstream). For our

own operations we included our largest

manufacturing sites located in Linkou and

Tainan (Taiwan), Pyeongtaek (South Korea),

Berlin (Germany), San Diego and Wilton

(US) and Veldhoven (including our location

in Oirschot) in the Netherlands. For our

value chain assessment we included six

key suppliers (based on spend) and three

key customers (based on three-year average

sales volumes). No significant assets and/

or business activities were considered

incompatible with a transition to a climate-

neutral economy.

The methodology to assess the risks and

opportunities to ASML in both the 1.5°C

and 4°C scenarios are based on and aligned

with our existing ERM processes.

In our ERM methodology we assess identified

risks and opportunities based on their expected

potential impact on ASML and expected

likelihood. Based on the combined score of

the impact and likelihood assessment, we

determine whether the risk exposure or

opportunity level can be classified as high,

medium or low. Risk mitigation measures are

taken into consideration when assessing the

risks, therefore representing net risk.

To assess the risks and opportunities for

ASML in a 4.0ºC scenario for our own

operations, we use the outcomes of our

Business Continuity Impact Assessment

(BCIA) as part of our ERM processes. The

climate data model from Munich Re is used

to determine the risk exposure and assess

potential impact from climate change

hazards (temperature-, wind-, water- and

solid-mass-related hazards) on assets and

business activities, in combination with site

specific mitigation measures that account

for these hazards.

To assess the risks and opportunities

for ASML in a 1.5°C scenario for our own

operations, we identified proxy risk categories

from our ERM risk framework and linked

those to the climate-related transition

categories provided by ESRS. These risk

proxies have been validated and assessed

with internal subject matter experts to

determine the risk exposure levels per risk

category toward 2030 in the 1.5°C scenario.

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General disclosures	Environmental	Social	Governance
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Energy efficiency and climate action: Climate resilience analysis (continued)

To assess the risks and opportunities for

ASML related to our value chain (upstream

suppliers and downstream customers),

we used publicly available data from these

suppliers and customers (such as annual

reports, CDP disclosures and TCFD reports)

to determine the risk exposure.

All assessments have been validated

and reviewed through internal multi-

stakeholder engagement.

We use the following time horizons in

our physical and transition risk and

opportunity assessments:

•Short term: One year.

•Medium term: From one up to five years

(for example strategy planning horizons).

•Long term: More than five years

(for example lifetime of assets).

This exercise allows for identification of

the most material risks and opportunities.

We consider the high and medium risks

and opportunities material for ASML.

Here follows an overview of the risk

and opportunity levels used.

Results of our climate-related risk analysis

and anticipated financial effects of identified

material risks and opportunities

The results of our scenario analysis are

presented in the overview on the following

pages. Per scenario and per category we

disclose the risk exposure and opportunity

levels, where in the value chain the risk

exposure or opportunity level is highest,

a description of the risk or opportunity, the

mitigating measures ASML or its value chain

partners have taken, and the anticipated

financial effects to ASML.

Based on the assessment conducted we

concluded that the risk exposure level is

medium for all our manufacturing sites in

relation to different types of climate change

hazards. We expect that climate change

effects will become more severe in the future,

especially in a 4.0ºC scenario. Mitigating

actions are integrated in our facility

improvement plans and are continuously

maintained and updated based on the

periodical reassessment of climate change.

If needed, plans are made to address the

future exposure.

Our manufacturing sites in Linkou (changing

temperatures and heat stress), Wilton (flood),

Berlin and Veldhoven (changing precipitation

patterns) face the highest exposure to

climate change effect. For these sites the

anticipated financial impact may be material.

Assessment of the resilience of our business

model and strategy

We define resilience as our capacity to

address our material climate-related risks

and how we can take advantage of our

material climate-related opportunities. In

order to determine the resilience of our

strategy and business model, we assessed

the extent to which the material risks and

opportunities derived from our scenario

analysis are covered by risk

mitigation measures.

To address the climate-related risks derived

from our scenario analysis included on the

following pages, we have integrated them

into our existing ERM process.

How we manage risk

We have listed our main risk responses in

the ‘Mitigating measures’ column in the table

with the results of our scenario analysis.

Our material physical risks will need to be

Risk exposure and opportunity level
High risk exposure: high financial impact on<br><br>ASML’s gross margin and/or market share	High opportunity: high financial impact on<br><br>ASML’s gross margin and/or market share
Medium risk exposure: medium financial<br><br>impact on ASML’s gross margin and/or<br><br>market share	Medium opportunity: medium financial impact<br><br>on ASML’s gross margin and/or market share
Low risk exposure: limited to no financial<br><br>impact on ASML’s gross margin and/or<br><br>market share	Low opportunity: limited to no financial impact<br><br>on ASML’s gross margin and/or market share

addressed in the medium but also in the

long term. Several actions have been taken

to mitigate the potential effects of climate-

related risks. These include incorporating

extreme weather considerations into the

upgrade and design of new buildings,

implementing insurance to address financial

implications of physical climate risks,

developing backup plans to ensure business

continuity, and managing other risks such as

flooding and windstorms.

Our material transition risks will need to be

addressed in the medium term. ASML is

proactively managing its exposure to such

risks and trying to anticipate their effects on

its reputation and financial performance. One

key initiative has been the establishment of

climate-related targets based on our existing

ESG roadmaps, like our product roadmaps,

aimed at mitigating the potential costs

associated with climate policies and carbon

taxation. Specifically, we are committed to

playing our part in limiting global warming to

1.5°C, and have determined climate change

ambitions (aligned with the 1.5°C scenario

and approved by SBTi) to drive action

toward GHG neutrality, as detailed earlier

in this report.

To execute our climate strategy, we have

been working on multiple actions in close

collaboration with our ecosystem partners.

We have developed a Climate Transition Plan

that includes a roadmap with key actions to

achieve our GHG neutrality ambitions –

providing insights into the work done on

energy-saving projects for our manufacturing

sites and offices, the roadmaps developed

for our system families to lower their energy

usage, and the supplier engagement

program to lower the emissions related to the

materials we purchase. We have developed

internal policies related to climate change

and other environmental topics, and provide

regular knowledge sessions on climate

change accessible for all our employees.

We have a growing employee network

called GreenASML, with over 2,000 people

discussing and giving input on climate

change and other ESG-related topics.

With the execution of our climate strategy

we aim to address the material climate-

related transition risks identified and

leverage the opportunities identified in

the medium term.

We need to continue these efforts in the

short, medium and long term, to maintain

our ability to adjust or adapt our strategy

and business model where relevant or

needed in relation to climate change.

Another next step is the further integration

of climate-related risks and opportunities

in our business continuity processes, where

we determine the value at risk for our key

manufacturing sites in case of downtime

of production processes, or loss of a

manufacturing site, due to man-made or

natural disasters. For example, by further

integrating climate-related risk events in

this process, we can determine anticipated

financial effects in the future. We anticipate

aligning these processes in the coming years,

providing us with a better understanding of

the effects of our risk mitigation measures.

With better data and a robust methodology,

we will gain more insight into the resilience

of our business model and strategy. This

analysis is planned to be conducted once

every two years to identify risks not yet

known or not yet considered material, and

that could significantly impact our business

objectives, financial condition, results,

operations and reputation.

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General disclosures	Environmental	Social	Governance
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Energy efficiency and climate action: Climate resilience analysis (continued)

Low
Medium
High
Scenario analysis: Physical risks<br><br>4°C scenario<br><br>medium and long term
---
Value chain location	Risk category	Risk exposure	Risk description	Mitigating measures	Anticipated financial effects
---	---	---	---	---	---
<br><br>Customers	Acute and<br><br>chronic<br><br>climate<br><br>change<br><br>effects		The increased frequency and severity of climate change effects are<br><br>expected to impact our key customers, particularly in the long term<br><br>(2050). Extreme weather events are predicted to be more severe<br><br>and the manufacturing facilities of our key customers are especially<br><br>exposed to water stress, droughts, storms and typhoons – events<br><br>that can potentially disrupt their operations. These customers are<br><br>particularly sensitive to water stress and drought due to the heavy<br><br>reliance on water for the semiconductor manufacturing processes.	Our customers are implementing mitigating measures themselves,<br><br>such as retrofitting of facilities to increase water efficiency, conducting<br><br>risk assessments and engagement with their supply chain to mitigate<br><br>climate risks. Alongside this, we are working on technical solutions<br><br>to reduce the water needed for cooling EUV machines to contribute<br><br>to a lower dependency on water.	Lost revenue<br><br>In a 4°C scenario our key customers could experience the increased effects<br><br>from water stress and drought, which could lead to increased opex and capex<br><br>expenditures and revenue loss at customer level. Consequently, the demand for<br><br>our products could decrease as customers lose financial power. Our dependence<br><br>on a concentrated number of customers could have a material adverse effect<br><br>on our revenue and financial condition.
					Increased capital expenditures<br><br>Our customers could demand machines that are more energy and water efficient,<br><br>which could require a redesign of (some of ) our products. R&D investments may<br><br>be required for this.
<br><br>Own operations	Acute and<br><br>chronic<br><br>climate<br><br>change<br><br>effects		The frequency and severity of climate change effects will increase<br><br>toward 2050. Tropical cyclones, heat stress and floods caused by<br><br>increased precipitation are predicted to be more severe in specific<br><br>regions, potentially damaging and disrupting our operations there.<br><br>Additionally, droughts could result in the disruption of water supply<br><br>due to water-dependent processes.	We have several key measures in place to mitigate the potential<br><br>effects of physical risks, including but not limited to robust building<br><br>designs, fire suppression systems in critical areas, stormwater control<br><br>mechanisms, water reserve controls, maintenance management,<br><br>power backup for safety/emergency systems and business<br><br>continuity strategies.	Lost revenue<br><br>Extreme weather events can disrupt production processes or transportation,<br><br>resulting in late deliveries. This can have a material adverse effect on our revenue<br><br>and financial condition.
					Operational costs<br><br>Temperature increases can increase operational costs, due to the necessity of<br><br>additional air conditioning to ensure consistent climate conditions for our production<br><br>processes and the productivity of the workforce. Also, it is likely that insurance costs<br><br>will increase due to increased frequency and severity of extreme weather events in<br><br>a 4°C scenario.
					Increased capital expenditures<br><br>In some cases, more investments will be needed to make our factories increasingly<br><br>resistant to the effects of climate change, including droughts, tropical cyclones, heat<br><br>stress, precipitation stress, floods and fire weather stress.
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General disclosures	Environmental	Social	Governance
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Energy efficiency and climate action: Climate resilience analysis (continued)

Low
Medium
High		Scenario analysis: Transition risks<br><br>1.5°C scenario<br><br>medium term
---		Value chain location	Risk category	Risk exposure	Risk description	Mitigating measures	Anticipated financial effects
---	---	---	---	---	---
<br><br>Across value chain	Policy and<br><br>legal		The climate-related regulation landscape is expected to change in many<br><br>regions. This could lead to stricter regulation on sectors such as energy,<br><br>industry and transportation, but also on the technology sector. ESG<br><br>reporting will also have to become more extensive and carbon-pricing<br><br>regulations may be introduced. Climate regulation will have a strong<br><br>effect on the medium term (2030) because the world will have to act<br><br>soon to limit global warming. These regulations may impact ASML<br><br>directly in relation to its own manufacturing processes, or indirectly via<br><br>the cost of input materials through suppliers or customer requirements<br><br>for carbon efficiency.	We monitor climate-related regulations and policies to understand<br><br>the potential effect on our business and stakeholders on a global level.<br><br>We deploy our carbon footprint strategy, with which we achieved<br><br>Greenhouse Gas (GHG) neutrality for our scope 1 and 2, business travel<br><br>and employee commuting emissions by 2025, and aim to be GHG<br><br>neutral for our supply chain emissions by 2030 and for product use<br><br>emissions by 2040. The objective of our supply chain collaboration<br><br>programs and our product energy-efficiency roadmaps is to reduce<br><br>emissions from the products we purchase, reduce the carbon footprint<br><br>of our products, and enable low-carbon technology and products<br><br>across our entire value chain.	Increased cost of input materials<br><br>The price of our input materials is likely to increase in a 1.5°C scenario due to<br><br>climate-related regulations and carbon taxes.
					Increased operating costs<br><br>Increased operating costs due to carbon taxation in a 1.5°C scenario.
					Increased capital expenditures<br><br>In a 1.5°C scenario, there will be increased capital expenditures as investments<br><br>are needed to make production processes more energy efficient or to change the<br><br>energy source. This is most relevant for our facilities in Taiwan and South Korea,<br><br>where the costs of moving to renewable energy are already very high. Additionally,<br><br>increased or prioritized R&D investments will be needed to support our<br><br>customers in meeting their own carbon-reduction requirements.
<br><br>Suppliers	Market and<br><br>economic		The availability of some input materials (for example raw materials<br><br>used in our equipment like steel, aluminum and rare earth elements) is<br><br>expected to be impacted, since demand will increase in a low-carbon<br><br>economy. Increased demand and decreased availability, alongside<br><br>changes to production processes at our suppliers and potential carbon<br><br>prices, could significantly impact the cost of raw materials.<br><br>Compared to last year we see that raw material prices have already<br><br>increased due to geopolitical developments. In a 1.5°C scenario we<br><br>expect more increases – for example due to carbon tax – and have<br><br>therefore increased the risk exposure level from medium to high<br><br>compared to last year.	To mitigate the effects of higher input material prices, purchase<br><br>agreements are signed with suppliers. We have developed dedicated<br><br>supply chain programs to monitor the availability of raw materials and<br><br>economic development as well as a scarcity program to monitor<br><br>scarce commodities.	Increased capital expenditures<br><br>Both ASML and its suppliers need to increase R&D investments to be able to<br><br>adapt our systems to be more energy-efficient and reduce the carbon footprint<br><br>of the supply chain.
					Increased operating costs<br><br>Increased operating costs due to the potential increase of raw material prices,<br><br>caused by limited availability and changes in supplier production processes in<br><br>relation to, for example, the production of green steel and aluminum.
<br><br>Across value chain	Technology		Investments in new technology are required to mitigate carbon<br><br>emissions, and these transition costs could be very high. ASML is<br><br>highly dependent on its suppliers and customers to reach its climate<br><br>ambitions. Some of our manufacturing processes require fossil-fueled<br><br>technologies for which no alternatives are yet industrialized (such as<br><br>for steel), while there is currently a limited availability of renewable<br><br>energy in some regions where our products are operated.<br><br>Although we still foresee challenges as described, we lowered our risk<br><br>exposure score from high to medium compared to last year, due to the<br><br>fact that our GHG neutrality targets toward 2030 has been approved<br><br>by SBTi as aligned with the 1.5°C scenario.	We develop our products and technology roadmaps in close<br><br>collaboration with suppliers and customers, and we actively work<br><br>to reduce our products’ energy consumption. We are gathering more<br><br>insights on material inflows to find solutions to reuse materials and<br><br>reduce the carbon footprint of those used in the production process.<br><br>We expect that the deployment of our Climate Transition Plan<br><br>will support our transition to achieve GHG neutrality for<br><br>scope 1, 2 and 3 emissions by 2040.	Increased capital expenditures<br><br>ASML and value chain partners need to increase R&D investments to reduce the<br><br>carbon emissions of our lithography systems, metrology and inspection systems,<br><br>and computational lithography.
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General disclosures	Environmental	Social	Governance
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Energy efficiency and climate action: Climate resilience analysis (continued)

Low
Medium
High
Scenario analysis: Transition risks<br><br>1.5°C scenario<br><br>medium term
---
Value chain location	Risk category	Risk exposure	Risk description	Mitigating measures	Anticipated financial effects
---	---	---	---	---	---
	Reputation		There will be greater scrutiny on the semiconductor sector as it<br><br>consumes large volumes of energy and water. Failure to decarbonize<br><br>and mitigate negative impacts on the environment could result in brand<br><br>and reputational risk for ASML – which could negatively affect<br><br>employee attraction and retention, and could result in a reduction in<br><br>available capital sources.	We have developed our ESG sustainability strategy to mitigate our<br><br>negative impacts and increase our positive impacts on ESG-related<br><br>topics. Part of this strategy is our Climate Transition Plan, which we<br><br>expect will help us to reduce our carbon emissions. By continuously<br><br>engaging with our relevant stakeholders, we seek to ensure our<br><br>strategy covers all our material impacts, risks and opportunities. The<br><br>Climate Transition Plan, its related strategic KPIs and its actions and<br><br>progress are monitored by the Board of Management (BoM).	Lost revenue<br><br>Reputational damage can lead to a decrease in demand from customers for our<br><br>products. Similarly, failure to manage climate impact can negatively impact<br><br>employee attraction and retention and indirectly lead to revenue loss.
Own operations					Increased capital and operational expenditures<br><br>Increased capital and operational expenditures as investments are needed to<br><br>execute our ESG sustainability strategy.	Scenario analysis: Climate change opportunities<br><br>1.5°C & 4°C opportunities<br><br>medium to long term
---		Value chain location	Opportunity<br><br>level	Opportunity description	Anticipated financial effects
---	---	---	---
<br><br>		The increased demand for low-carbon technologies will create opportunities for the entire semiconductor industry. When<br><br>looking at the scenario of a low-carbon economy, semiconductors play a multifaceted role in mitigating carbon emissions.<br><br>They are needed for the generation and use of low-carbon energy sources, and are necessary for wind turbines, solar<br><br>panels and electric vehicles (EVs), among other technologies. Moreover, semiconductors are necessary in all smart<br><br>technologies that help improve energy efficiency, such as smart grids, while power semiconductors can be key in reducing<br><br>energy use. As demand for semiconductors may surge, the need for ASML lithography systems is also likely to increase.	Increased revenue<br><br>As demand for semiconductors increases, it is likely the need for lithography systems will, too. We will likely be able to<br><br>serve this need if we continue to follow our vision of producing microchips that are constantly becoming more energy<br><br>efficient. The increase in demand for semiconductors will be highly likely to lead to increased revenues.
Own operations<br><br>and Customers

ASML_Sustainability_Enivronmental_Circular-Economy_v6.jpg

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Circular economy

We aim to have zero waste from our operations to landfill and incineration by 2030

Why it matters

...for the planet
The predominant linear model of the global economy – in which products<br><br>are produced, used and then thrown away as waste – is unsustainable.<br><br>It adds immense pressure to our planet’s limited resources, increases<br><br>greenhouse gas (GHG) emissions and generates waste and pollution.<br><br>A circular economy approach enables sustainable growth while reducing<br><br>waste, costs and environmental footprint, by creating business loops, ensuring<br><br>efficient use of resources and driving an innovative business model.		...for ASML
---
By applying a circular economy strategy, we aim to ensure our products and<br><br>services create and retain as much value as possible for us, our shareholders,<br><br>our customers, our suppliers and other partners across our value chain.<br><br>This approach supports our employees’ desire to contribute to reducing<br><br>environmental impact, while improving systems and parts availability and<br><br>lowering the total cost of ownership for our customers. It also provides<br><br>opportunities for suppliers to reduce costs by reusing and avoiding the<br><br>use of new materials.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Total waste from<br><br>operations (excluding<br><br>construction and<br><br>demolition waste)	Reuse rate of parts<br><br>returned from the<br><br>field and factory
15,258 t	90%
2024: 13,267 t	2024: 88%
2025 target: N/A	2025 target: 90%
Recycling rate (excluding<br><br>construction and<br><br>demolition waste)	Waste generated per<br><br>€m revenue (excluding<br><br>construction and<br><br>demolition waste)
66%	467 kg
2024: 62%	2024: 469 kg
2025 target: 65%	2025 target: 322 kg

Our sub-topics

Systems	Parts and tools	Transport materials	Non-product-related<br><br>waste	Real estate

Circular economy_v2.jpg

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Circular economy (continued)

Key
	Actual positive impact	Risk
	Potential positive impact	Opportunity
	Actual negative impact
	Potential negative impact

Our material impacts, risks and opportunities relating to Circular economy.

| Upstream | Own operations | Downstream | | --- | --- | --- || Whole value chain | | | --- | --- | | | Non-renewable resource inflows and outflows (Systems, parts and tools, transport materials) || Waste streams from our own operations and building renovation and construction activities (Systems, parts and tools, transport materials, non-product-related waste, real estate) | | --- || Supply chain disruptions caused by unavailability of materials and parts, including as a result of non-compliance with rules and regulations regarding hazardous substances (Systems, parts and tools, transport materials) | | --- || Customer dissatisfaction and complaints due to not meeting agreed circular economy standards (Systems, parts and tools, transport materials) | | --- | | STRATEGIC REPORT | CORPORATE GOVERNANCE | SUSTAINABILITY | FINANCIALS | ASML Annual Report 2025 | 190 | | --- | --- | --- | --- | --- | --- | | General disclosures | Environmental | Social | Governance | | --- | --- | --- | --- |

How we are managing circular economy

Our approach

We aim to transition from a linear to a more

circular business model, to minimize the

environmental and social impact of our

operations worldwide.

We believe this is vital for our future success

and competitiveness as it ensures:

•Business value and cost reduction are

maximized by optimizing the amount of

purchased goods, while avoiding surplus

and reusing resources as much

as possible.

•The availability of parts and access to

materials to support our growth, while

decoupling it from material consumption –

sourcing sustainably and closing the loops

– is key for operational resilience.

•Improved designs are achieved by learning

from failure cases and returns of used

products, leading to improved products,

solutions and processes.

•Environmental impact and social risks

are reduced by less use of virgin materials,

reduced emissions through repairing and

disposing locally, and eliminating waste

ending in energy recovery, incineration

and landfill.

•Compliance risks are mitigated by

adhering to regulations together with

our partners in the value chain.

We aim to limit our negative impacts on

the planet in close collaboration with our

customers and suppliers.

We do this with a clear ambition to have

zero waste from our operations to landfill

and incineration by 2030.

We have identified five material sub-topics

worldwide representing our scope of work:

•Systems

•Parts and tools

•Transport materials

•Non-product-related (NPR) waste

(hazardous and non-hazardous)

•Real estate (building renovation

and construction)

Our different types of waste

We measure our impact in tonnes of waste, by category (non-hazardous and hazardous) and by material type (such as plastics, paper, wood and hazardous liquids). Within our operations, we divide our waste into four categories: •Non-hazardous waste, such as packaging material, waste from parts resulting from upgrades or defects, and general waste. •Construction and demolition waste as a result of building activities, which tend to fluctuate over the years. •Hazardous waste, such as the chemicals we use in our manufacturing processes. This can include everything from lamps, batteries and liquids to cleaning wipes and filters. Most of our hazardous waste is in the form of liquids, including acetone and piranha acid. •Radioactive waste, which originates from small amounts of radioactive material in our products. We include data on the CO2e impact of processing our waste in our scope 3 emissions.

Circular economy_v2.jpg

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How we are managing circular economy (continued)

Levers for action

We aim to achieve our ambition

across the five material sub-topics

via a strategy based on the

following four levers, which we

apply in collaboration with our

suppliers and customers:

1. Prevent waste

We aim to prevent waste by decoupling

our business growth from our waste

generation. Our waste prevention strategy

aims to rethink design and processes to

avoid waste throughout the entire lifetime

of our systems – in the production and use

phase, and at end of life (EoL). Our systems

are divided into modules, speeding up the

development cycle by allowing teams

inside and outside ASML to work on

different components in parallel.

Design of our systems, parts and tools is

done with disassembly in mind, making

them easier to repair and maintain.

We focus on design along circular economy

principles including durability, reusability,

repairability, refurbishment, remanufacturing

and recycling. In addition, we work on

implementing commonality, modularity,

serviceability, compatibility

and standardization.

We also design systems, parts, packaging,

tools and real estate to maximize their value

and reliability, and to prevent waste. We aim

to choose mono-material components and

an eco-design methodology, and to minimize

the use of critical raw materials such as rare

earth and hazardous materials.

As part of our supplier sustainability

program, we collaborate with product- and

non-product-related suppliers that deliver

more sustainable materials, sourced from

renewable sources, and durable and efficient

products with recyclable materials that can

be upgraded, reused, repaired, refurbished

and recycled by us or our suppliers. We

do not yet have absolute targets on the

minimization of primary raw materials

and the use of sustainable and renewable

resources, but we strive to avoid excess

and obsolete inventories.

We are committed to making reliable

systems, minimizing the number of parts

dead on arrival. By rethinking processes

and implementing lean principles in

manufacturing and logistics, we aim to

improve delivery and thereby reduce waste.

2. Extend lifetime

We aim to keep systems, products and

assets in use for as long as possible.

With our customers, we focus on establishing

contracts to keep our systems working for

longer, maximizing their value and avoiding

obsolescence. With our suppliers, we focus

on establishing contracts to keep our

infrastructure working for longer.

By developing lifetime extension, productivity

enhancement and system node extension

packages (LEPs, PEPs and SNEPs,

respectively), we aim to enhance the lifetime

and performance of our systems. We also

refurbish systems. With an LEP, we replace

parts or modules for which the availability of

spare parts can no longer be guaranteed, to

further extend the lifetime of the product.

3. Reuse resources

We aim to maximize resource reuse across

our value chain. We’re committed to reusing

system parts, packaging, tools and NPR

resources, focusing on optimal return flows

by collaborating with customers and

suppliers while learning from system usage

in the market and from product returns for

repair and reconditioning.

We repair and harvest parts and packaging

through global and local repair centers,

suppliers and partners, at locations with the

lowest environmental impact. Redeployment

enables the reuse of parts, packaging, tools

and devices in new life cycles with identical

functionality, both within and outside ASML.

In real estate, we repair buildings, assets

and infrastructure.

4. Recycle materials

We aim to prepare materials for reuse

or recycling at EoL. In collaboration with

our partners, we focus on the best ways

to collect, dismantle and sort material to

avoid landfill, incineration and other disposal

operations. Increasingly, preparation for

reuse or recycling of both hazardous and

non-hazardous materials and construction

and demolition waste at EoL takes place

locally. We only collaborate with waste

contractors certified according to local

legislation, and aim to include sustainability

KPIs in contracts to ensure contribution

to our circular economy targets.

Overall our focus is to:

•Continue our work with stakeholders

according to our established circular

economy governance.

•Clarify our circular sourcing strategy

to ensure we minimize inflow and

prevent waste.

•Ensure our designs continue to take

circularity principles into account.

•Ensure circularity principles are

embedded in the design of new

buildings and infrastructure.

•Improve the flow of packaging in our

value chain to reduce cost and waste.

•Continue to maximize reuse.

•Increase our recycling rate in line with

our new 2030 target.

•Strengthen our regional repair network

through a collaboration with both our

OEMs as well as specialized repair houses.

This has the potential to reduce the

shipping of high usage parts and modules,

having them repaired as close as possible

to our customers’ installed base.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Systems

| Our objective | | --- || We aim to maintain systems in use for as long as economically and environmentally possible, focusing on service, upgrades and refurbishment. | | --- || Our scope | | --- |

In scope are systems, which refer to our

complete portfolio of holistic lithography

solutions that support our customers at every

stage of the chipmaking process, from early

design and development to high-volume

production: EUV and DUV lithography

systems, metrology and inspection systems,

computational lithography and software

solutions for system and process control.

Targets and performance

Percentage of systems sold over the past

30 years still active in the field by 2025

| 2025 target: N/A | | --- || | 0% | 20% | 40% | 60% | 80% | 100% | | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | 2025 | | | | | | |

155031139546511

We actively monitor our systems sold over

the past 30 years that are still active in the

field, including our EUV, DUV and PAS 5500

systems. Both ASML and our customers

want to extend the lifetime of our systems

as long as possible, due to their high value.

In 2025, we sold 27 refurbished lithography

systems. To date, we have refurbished and

resold over 600 such systems. At the end of

2025, 95% of all (refurbished) systems sold in

the past 30 years were still active in the field.

We are currently in the process of updating

our circular economy strategy. We anticipate

that we will not report on this performance

indicator going forward. However, we’re

strengthening the circular economy thinking

in our installed-base strategy, and developing

new targets to monitor progress.

Our actions and resources

Enhancing performance and lifetime

We are establishing customer contracts to

maintain systems in the market as long as

economically beneficial – maximizing their

value for both the customer and ASML.

We develop refresh packages to maintain

a high performance, PEPs (Productivity

Enhancement Package) and SNEPs (System

Node Extension Package) to enhance their

running period and performance, and

additional options to allow systems to be

adapted to new customer requirements.

We offer PAS customers a service roadmap

guaranteed until at least 2035. For each

platform for our other systems, we provide

specific guarantees regarding the availability

of support, necessary services and spare

parts required to maintain their systems until

at least the committed date, subject to export

control limitations.

Safeguarding availability

We refurbish systems across the business –

a multi-year program in which we continually

invest to ensure the supply of more than

2,000 service parts for our PAS, XT and NXT

platforms. This is achieved either through

redesigns, harvesting parts from systems

decommissioned by our customers, or

finding an alternative with the same form,

fit and function.

Where this is not possible, we are generally

able to secure components through ‘last

time buy’ – a supplier’s ‘last call’ for a part

or component before production switches

to its successor. As a last resort, we may

completely redesign a part.

Extending lifetime through refurbishment

We focus on refurbishing a number of

product families: PAS 5500 (approximately

1,800), TWINSCAN XT (2,000) and

TWINSCAN NXT:1950, NXT:1960, NXT:1970

and NXT:1980 (1,000). For the approximately

200 TWINSCAN AT systems still in operation,

we focus on measures to proactively manage

their EoL – guaranteeing the availability of

spare parts for as long as possible and

providing customers with sufficient notice

if we can no longer do so. We define until

which date systems need to be supported,

and we proactively organize for the parts,

people and tooling needed to execute this

successfully. Our refurbishment program

primarily focuses on the industrialization of

refurbishments using existing hardware –

ensuring consumables, worn parts and any

necessary upgrades have established

procedures and sequences to ensure

minimal cycle time and cost.

Redesigning to avoid obsolescence

We track spare parts in our portfolio to see

how they are being used and identify when

we expect to run out of individual items. For

our PAS, XT and NXT platforms, we use this

information to update our priorities

for redesign.

We plan to execute several redesign projects

in the coming years – particularly relevant for

electronic parts, for which the evolution of

technology has been faster than in any other

field. We will continue to increase our focus

on local repair to extend the life of the mature

installed base at lower cost, reducing the

need to redesign and buy new materials

and parts.

Resources

By considering modularity, commonality and

repairability during the design phase, we can

extend the lifetime of our machines, increase

reuse opportunities for parts in the future,

and extend the productivity of our systems

to maximize use throughout their lifecycles.

We have several development and

engineering teams working on installed-base

programs that focus on extending the lifetime

and productivity of our systems. In these

cases, our circular objectives are inter-aligned

with other strategic goals, such as extending

the productivity of our systems. As a result,

it is not possible to fully distinguish our

resources and FTEs for circular objectives

alone. However, performing core activities

directly focused on extending system lifetime

is currently estimated on the lower end at

around 20 FTEs.

Looking ahead

For DUV, we continue our focus extending

lifetime through refurbishment. For both

EUV and DUV, we will continue to leverage

our large and growing system installed base

to provide high-value service and upgrades

over a lifetime of more than 20 years.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Parts and tools

| Our objective | | --- || We aim to extend the lifetime value of our parts by maximizing reuse through repair, and by driving learning loops to improve design. | | --- || Our scope | | --- |

In scope for our parts and tools – from this

point on referred to collectively as ‘parts’ –

are subsystems, modules, assemblies, parts,

tools and components used in our systems.

Targets and performance

In the context of reusing parts, we have

defined one target:

Achieve a 90% reuse rate of parts returned

from the field and factory by 2025

	0%	20%	40%	60%	80%	100%
2024
2025
Achieved<br>					2025 target: 90%

156680407017444

Our target is a 90% reuse rate, driven by

return and repair success. We established

this target to focus on the reuse of our parts

and gain better insights into our reuse

processes. We collaborate closely with our

partners and suppliers to improve our reuse

rate. On a monthly basis, we report on our

overall performance to the company-wide

reuse steering committee.

Having reached our target, with a reuse rate

of 90%, we plan to continue progressing on

our re-use journey, with expectations that the

current target will remain in place until 2030.

Our actions and resources

Increasing our reuse capabilities

In our new system designs, we aim to

ensure design-for-reuse principles. In 2025,

we continued to further embed reuse into the

design of new systems. We have deployed

clear processes, training and tools in our

organization that enable our engineers to

design parts that can be reused, repaired,

recycled or upgraded – reducing waste

and extending product lifetime.

For legacy parts introduced in the past, we

created new repair procedures – which will

contribute to the return-rate performance.

In addition, we continuously investigate how

to improve the repair-rate performance of all

activities. We aim to maximize the recycling

of unrepairable materials to minimize

landfill disposal.

These efforts support our long-term goal of

a circular, low-waste product lifecycle.

Our repair network

Before parts are returned for reuse, they

undergo an identification process and quality

check followed by the logistical and financial

processes required to bring them back into

the supply chain – either to the original

module suppliers or to ASML.

Our goal is to improve and execute

processes at the optimal location based on

parts demand, and create a network-related

solution to enable high flexibility and reduce

transport – which also reduces our

CO2e footprint.

These global activities – which are connected

to our general enterprise resource planning

(ERP) system – support us in maintaining our

desired performance.

By enabling repair and reuse activities close

to where materials are needed, we’re able to

reduce logistics time, the cost of stocking

parts, and our environmental impact by

reducing both scrap and GHG emissions.

Localized repair centers

Currently, we have repair centers in

South Korea (Hwaseong), Taiwan (Linkou),

China (Beijing), the US (Wilton; San Diego;

Vancouver, WA) and the Netherlands

(Veldhoven). They work with local suppliers

and specialized repair partners to create

a regional network.

Circular supplier collaboration

We’re collaborating with suppliers to

incentivize reuse over new purchases. In

2025, we continued to transfer used parts

back to our suppliers to repair, refurbish

or harvest for reuse in their new buying

process, giving them greater flexibility

in how they can reuse parts.

Resources

We have a dedicated Reuse & Repair

organization, established with a view to

bringing greater visibility to the holistic benefits

of a circular supply chain – including cost,

reduction of waste, increase of output through

parts availability, overcoming material

shortages and improving our designs by

establishing learning loops on part failure.

The organization leases several repair

centers and reuse factories for end-to-end

reuse activities, from dismantling and

harvesting to repairing, (tin) cleaning and

returning materials for reuse to our factories

and field locations.

Operational expenditure related to the Reuse

& Repair organization was approximately

€50 million in 2025, including for around 270

FTEs at year end. The amount of future

financial resources is expected to be

comparable to 2025 and is likely to evolve

depending on, among other things, the

general business development as well as

systems and parts we are able to buy-back.

When repair centers are acquired, the EU

Taxonomy assessment is performed under

economic activity CCM 7.7 Acquisition and

ownership of buildings.

In order to enable further scaling of reuse

through processes and organizational

changes, we invest on average about 70

FTEs in our improvement program.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	194
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Parts and tools (continued)

Resources allocated to the Reuse & Repair

organization also contribute to other strategic

goals and are not solely attributable to our

circular objectives.

When conducting the EU Taxonomy

assessment, we assessed our contribution

to the transition to a circular economy by

checking the alignment of our economic

activities with the technical screening criteria

provided for activities 1.2 Manufacture of

electrical and electronic equipment and 5.1

Repair, refurbishment and remanufacturing.

Our conclusion was that our activities cannot

be considered aligned with the EU Taxonomy

for these specific activities.

For activity 1.2, the following reasons explain

the lack of alignment:

•We track information on substances of

concern and very high concern. However,

these are not yet publicly available in the

SCIP (Substances of Concern in articles

as such or in complex objects (Products))

database and/or IEC62474.

•Currently, we do not meet the design for

recyclability criteria, which rely on EN

45555:2019 or any product-specific EN

standard relying on EN 45555:2019.

•In total, 95% of our systems are still active

in the field and we have longstanding

relationships with our customers. Each

buyback, sell-back or take-back is an

individual negotiation and we cannot

therefore evidence standard information

to customers regarding EoL options for

our products.

A cross-company approach to circularity

Activity 5.1 is not aligned because we lack

a waste management plan ensuring our

products’ materials – particularly critical

raw materials and components that have

not been reused in the same product – are

reused elsewhere, or, where reuse is not

possible (due to damage, degradation or

hazardous substances), are recycled, or,

only where reuse and recycling are not

viable, are disposed of in accordance with

applicable EU and national legislation.

This will require a waste plan covering

each of the tens of thousands of parts

in our systems.

Environmental – EU Taxonomy

In 2025, we made notable

progress on an innovative,

collaborative approach to creating

a more circular supply chain.

Working closely with suppliers, we

began a program to buy-back return

products for remanufacture, repair or

harvesting – giving them greater autonomy

in reusing parts, optimizing their processes

and reducing waste. A dedicated circular

supplier collaboration (CSC) team –

comprising members from development and

engineering, customer support, IT, quality,

finance and more – has developed a

compliant scalable order flow. This has led

to successful buyback implementations

with six major suppliers.

Looking ahead

We expect the total return flow of materials

to grow alongside the growth of our installed

base in the coming years, and will therefore

continue to expand our reuse and repair

capabilities by deepening supplier collaboration

and optimizing our global repair network. Our

focus will remain on embedding design-for-

reuse principles into future system design

and improving return and repair rates. We will

continue to optimize our worldwide footprint

based on parts demand, CO2e emissions

and cost, to increase circularity via our own

repair centers and in collaboration with

our suppliers.

ASML_Sustainability_Environmental_Circular-economy_Transport_Image-v2.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Transport materials

| Our objective | | --- || We aim for optimization of resource use, reduction of waste and cost, and enhancement of supply chain efficiency, by increasing the reusability and recyclability of transport materials. | | --- || Our scope | | --- |

In scope for our transport materials are

materials used to protect, safeguard and

transport our systems and parts across

the value chain.

Targets and performance

Shipping our lithography systems requires

substantial packaging and transportation

materials. This year we have initiated a

dedicated program to address its

environmental impact – though standalone

targets for waste generated from transport

materials are not yet established. Our total

waste and overall recycling targets include

that from transport materials.

Our actions and resources

Reuse of transport materials

Valuable transportation materials – such

as packaging, locking and plug materials

– are used to safely transport our modules

and systems, either from our suppliers to

our factories or from our factories to our

customers. Instead of being thrown away

once they reach their destination, these

materials are reused.

We’re improving the reuse of packaging,

locking and plugs from the field and factory,

and implementing business rules, KPIs,

analytics and infrastructure to secure

reuse over new purchase.

In 2025, we continued to make progress

in reusing thousands of small auxiliary

materials, such as plugs, flanges, caps

and brackets. These are being reused for

system parts in our factories or for shipping

machines to our customers.

We also focused on improved reporting

capability to better analyze our waste

streams, reduced our factory waste stream

on transport materials, and, where this is

not possible internally, continued seeking

reuse opportunities outside ASML.

Starting our packaging program

To improve packaging practices and reduce

associated impacts, we began a dedicated

company-wide packaging program this

year including:

•Setting clear definitions and boundaries

on what we consider to be packaging.

•Improving data insights by centralizing and

enhancing packaging registrations tools.

•Defining clear roles and responsibilities in

the organization to enable efficient return

and reuse process on transport materials.

•Starting a pilot project to improve

packaging design and recycling by moving

design and engineering responsibility into

the new packaging organization.

•Initiating a pilot program to decrease the

reliance on single-use packaging

materials.

We will monitor progress and are investigating

which KPIs to use in addition to our recycling

rate – which also includes the reuse of

transport materials.

Resources

In 2025, we added 3 FTEs in the context of

our focus on reuse of transport materials. Our

reuse centers also play an important role.

Looking ahead

We will continue to strengthen our transport

materials reuse strategy by scaling pilot

programs, defining KPIs, and embedding

circular design principles into packaging

development. Our focus will be on expanding

data-driven insights, optimizing logistics,

and reducing reliance on single-use materials

across the supply chain. Our plans for

increasing reuse of our transport materials

will continue in 2026 and beyond – our new

packaging program will run until 2030.

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General disclosures	Environmental	Social	Governance
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Circular economy: Non-product-related waste (hazardous and non-hazardous)

| Our objective | | --- || We aim to minimize waste and increase our recycling rate with dedicated actions to try to realize our ambition to have zero waste from our operations to landfill and incineration by 2030. | | --- || Not achieved | 2025 target: 322 kg | | --- | --- || | 0 | 100 | 200 | 300 | 400 | 500 | 600 | | --- | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | | 2025 | | | | | | | || Our scope | | --- |

Our scope covers both product-related

(PR) and non-product-related (NPR) waste

streams across all locations. Non-product-

related (NPR) waste (hazardous and non-

hazardous) refers to all waste other than

production items that are not part of a

system, such as asset management,

facility management and IT.

Product-related (PR) waste consists of

systems and parts and tools, including

transport materials.

While our waste scope distinguishes

between PR and NPR, our strategic targets

are set on total waste excluding construction

and demolition waste – integrating both

categories into our reduction efforts.

Targets and performance

Our waste prevention strategy contributes to

the following targets:

Achieve 322 kg of waste from operations

(excluding construction and demolition

waste) / per €m revenue by 2025

Achieved<br>	2025 target: 65%

155031139558632

Waste from operations in this context –

PR and NPR – is defined as any substance

or object the holder discards, or intends or

is required to discard, including waste from

activities, resources and relationships

owned or controlled by ASML (excluding

construction and demolition waste).

In 2025, we identified and included waste

that is classified as waste from our own

operations but occurring at third-party

warehouse locations that had not been

previously captured. Therefore, the

comparative waste figure (increase of 1,101

tonnes) and comparative recycling rate

(decrease of 1%) have been updated. The

2025 waste intensity target is updated

accordingly (increase from 295 kg to 322 kg

per €m revenue).

Our waste intensity in 2025 is 467 kg per €m

revenue. We did not achieve our target of

322 kg per €m revenue. We recognize we

need to scale-up our efforts to reduce our

waste streams for which multiple initiatives

are currently running or planned. We remain

committed to our ambition of zero waste to

landfill and incineration by 2030.

Achieve a 65% recycling rate of waste

from operations (excluding construction

and demolition waste) by 2025

	0%	20%	40%	60%	80%	100%
2024
2025

155031139558878

62%

In 2025, we generated 15,258 tonnes of

PR and NPR waste (excluding 13,461 tonnes

construction and demolition waste). Our

recycling rate was 66%, exceeding our

target of 65% – reflecting the effective

implementation of our waste strategy across

sites. Local teams contributed by actively

identifying opportunities to reduce and divert

waste, demonstrating progress toward

our circularity goals. For NPR waste we

completed a project whereby obsolete

intellectual property materials were cleared

from warehouse storage. Furthermore,

we have started initiatives with our waste

companies to both increase our recycling

rate and better understand the environmental

impact of our waste.

Building on our achievements, we plan to

continue our efforts to improve our recycling,

with a new target of an 85% recycling rate

by 2030.

Our total waste in 2025

7696581394456

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General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Non-product-related waste (hazardous and non-hazardous) (continued)

Our actions and resources

To reduce NPR and PR waste, our actions

focus on multi-year projects that first started

in 2023.

Enhancing waste data quality

In 2025, we completed a project to improve

the completeness, representativeness and

accuracy of waste data worldwide. This

resulted in:

1.Standardized and common waste

definitions accepted on a global level.

2.A waste competence network, enabling

ASML to develop standards and guidelines

to mature our waste management.

3.Integrated waste tooling, enabling us to

gain detailed, structured and automated

insights on our waste streams.

4.Updated some waste hauler contracts

with ESG requirements in the Netherlands,

Taiwan and Wilton (US) and added ESG

requirements in Integrated Facility

Management (IFM) contracts.

Developing new projects worldwide

In 2025, we also matured our circularity

portfolio through improvement projects at our

seven largest industrial sites, including:

•Veldhoven (the Netherlands): A

comprehensive waste master plan was

developed to improve the site’s recycling

performance. Three major initiatives were

launched focusing on catering, warehouse,

and cleanroom optimizations. Additionally,

a dedicated program is underway to reduce

and reuse piranha acid. To further accelerate

progress, a Soft Services Coalition was

established in collaboration with our suppliers,

aiming to jointly reduce CO₂ emissions

and minimize waste across operations.

•Wilton (US): We focused on identifying

packaging reuse and packaging waste

reduction initiatives. Furthermore, we

started a glass-ceramic material recycling

pilot and executed a plastic recycling

project that aims to improve the recycling

rate. We also worked on office bin

optimization and hosted an ESG day.

•San Diego (US): We made progress in

diverting campus waste from landfills by

enhancing waste sorting protocols and

replacing single-use to-go containers with

BPI Certified compostable alternatives in

the campus breakrooms and cafés. We

implemented compost bins to capture

organic waste and launched a nitrile glove

recycling program, targeting lab-related

waste streams for improved material

recovery. To drive long-term circularity,

we formed a cross-functional circularity

working group dedicated to identifying

operational waste such as packaging

and advancing opportunities for recycling,

waste reduction, and reuse.

•Tainan (Taiwan): We focused on waste

chemical liquid recycling at our Tainan

factory and chemical bottle recycling at

our Linkou factory. We also focused on

improving waste segregation at our offices

and warehouses and implemented a food

reduction program at all of our locations

in Taiwan.

•Global: We created ESG training modules

for our employees. We also developed a

circularity master plan for our sites in

South Korea and we have implemented

demountable cleanrooms across

11 locations.

Resources

There are six FTEs working on our actions

as part of our waste master plan.

Looking ahead

In 2026, we will continue our organization-

wide program focused on improving waste

management and reduction with a new set-

up, which will result in dedicated waste

recycling roadmaps for our industrial sites,

including tangible projects that contribute

to the global 85% recycling rate target for

We also will continue implementing

improvement projects on our sites worldwide.

Continued collaboration with suppliers and

expansion of our waste competence network

will be key to driving innovation and

consistency in waste handling.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Real estate

| Our objective | | --- || We aim to embed circular principles in real estate by applying green building standards and certification methods, with the goal of making our new and existing buildings as sustainable as possible. In our owned real estate portfolio management, we aim to have our newly built and renovated buildings (those exceeding €20 million investment) BREEAM-certified for buildings in the EU, LEED-certified for buildings in the US and Asia, and LEED/G- SEED-certified for buildings in South Korea. These certifications emphasize sustainability through the circular use of materials and waste reduction during a building’s design, construction, and operation. | | --- || Our scope | | --- |

Our scope includes real estate activities

such as building renovation and construction

across all ASML-owned and leased properties.

Real estate refers to all ASML-owned and

leased buildings. Waste generated on

construction sites either directly operated

by us or managed on our behalf classifies

as construction and demolition waste.

appendices – Appendix – Property, plant

and equipment

Targets and performance

As we continue to expand our facilities,

we aim to maximize the recycling of waste

from our construction activities. In 2025,

we generated 13,461 tonnes of construction

and demolition waste (2024: 14,101) – 83%

of which was recycled (2024: 82%).

In 2025, we had two large construction

and demolition projects in Veldhoven and

Berlin. We also obtained new and improved

information compared to 2024. In addition to

construction and demolition waste reported

by our waste haulers, we now also include

waste generated by construction companies

contracted by ASML following our actions to

improve control and data over this waste

stream. The comparative information has

been updated accordingly.

Construction and demolition waste

375

Starting in 2026, we aim to achieve a

recycling rate of 80% for ongoing construction

and demolition projects and 85% for upcoming

projects. This target applies to all construction

and demolition projects in the Netherlands

with a value exceeding €20 million.

Our actions and resources

Adopting green building standards

In 2025, we created and implemented our

Green Building Policy – comprising our own

green building standards with high-level,

overarching requirements applicable for

owned buildings. This will lead to consistency

in requirements – for example, in using

sustainable materials – including waste

segregation and improving recycling of

construction and demolition waste.

We used 2025 to assess whether the Policy

suits its purpose, to learn which changes –

if any – we should make due to operational

constraints and how we can track the desired

outcome. For example, we encountered

challenges due to the specific material

requirements of cleanroom construction –

such as the use of concrete – which currently

conflict with certain mandatory criteria under

the Green Building Credit on the green

building certification system. We continue

to engage with industry experts and

certification bodies.

All our office and industrial buildings in

scope are now in the desired green building

certification process. Some of our new office

buildings in Veldhoven (the Netherlands)

currently have the BREEAM ‘excellent’

certification, and our new campus in

Hwaseong (South Korea) is G-SEED and

LEED certified. Adopting these standards –

which include circular building design – will

contribute to further improving our total

waste and recycling rates.

Gaining insights into waste streams

Because our green construction philosophy

considers the entire lifecycle of a building, we

also take construction and demolition waste

into account. As a result of the company’s

growth, we see an increase in new buildings

and renovation projects worldwide – leading

to more construction and demolition waste

that needs to be tracked.

As of 2025, we are in the early stages of

rolling out a way to track construction and

demolition waste for all projects above €5

million. On a global level, we have identified

62 such projects. We also continued working

on gaining detailed insights for our waste

streams and for disposal methods handled

by our constructors at five large construction

and demolition projects worldwide. This will

give us greater control over construction and

demolition waste, allowing us to define a

realistic target for construction and

demolition waste in the near future.

We defined further actions based on

these insights:

•We provided our contractors and waste

handlers with stricter circularity guidelines

for processing construction and

demolition waste.

•We created guidance for project managers

and contractors to report construction and

demolition waste through a standardized

report, to simultaneously simplify their

work and improve our insights.

•We expanded our environmental reporting

system to include construction and demolition

waste handled by contractors worldwide.

•We embedded construction and demolition

waste pre-sorting requirements into

contractor contracts.

Resources

As the resources related to our actions

regarding construction and demolition waste

cannot be fully distinguished from our energy

efficiency and climate action activities, we

combine and disclose them in the section

Energy efficiency and climate action –

Manufacturing and buildings. In our EU

Taxonomy section, we have included our

assessment of the capex for buildings in

scope for economic activity 7.2 Renovation

of existing buildings and 7.7 Acquisition

and ownership of buildings.

Environmental – EU Taxonomy

Looking ahead

As of 2026, we will track performance via

our new construction and demolition waste

target in the Netherlands. We also aim to

improve data reliability in projects smaller

than €20 million in the Netherlands, by

implementing recycling requirements and

we aim to build upon our pilot ran this year

in the Netherlands with circularity guidance

for new buildings.

In 2027, we aim to extend our new target

to our other locations. This will be aided by

improved insights into our waste streams.

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Circular economy: Metrics table

Topic	Description	2024	2025
Resource inflows (in tonnes)	Percentage of biological materials used in manufacturing that are sustainably sourced1	2%	4%
	Biological materials used to manufacture products and services that are sustainably sourced	800	1,920
	Products and technical and biological materials used1	51,362	50,587
	Percentage of secondary reused or recycled components, secondary intermediary products and secondary materials used in manufacturing (including packaging)1	57%	60%
	Secondary reused components, secondary intermediary products and secondary materials used to manufacture products and services (including packaging)	10,963	12,610
	Secondary recycled components used to manufacture products and services (including packaging)1	18,490	17,857	Topic	Description	2024	2025
---	---	---	---
Resource outflows (in tonnes)	Percentage of recyclable content in products and their packaging	80.2%	79.9%
	Recyclable content in products and their packaging1	30,552	28,228	Topic	Description	2024	2025
---	---	---	---
Waste generated by waste type<br><br>(in tonnes)2	Non-hazardous waste (excluding construction and demolition waste)	12,243	14,252
	Construction and demolition waste	14,101	13,461
	Hazardous waste	1,024	1,006
	Radioactive waste	0.1	0.2
	Total amount of waste generated by waste type	27,368	28,719
Topic	Description	2024	2025
Waste diverted from disposal by<br><br>recovery operation type – Non-<br><br>hazardous waste (in tonnes)2	Preparation for reuse	145	112
	Recycling	19,049	20,415
	Other recovery operations	0	0
	Amount of waste diverted from disposal by recovery operation type – Non-hazardous waste	19,194	20,527
Topic	Description	2024	2025
Waste diverted from disposal<br><br>by recovery operation type –<br><br>Hazardous waste (in tonnes)	Preparation for reuse	37	44
	Recycling	757	756
	Other recovery operations	0	0
	Amount of waste diverted from disposal by recovery operation type – Hazardous waste	794	800

We have included metrics that were not reported in 2024 and have included comparative figures accordingly. Read more in Sustainability statements – Circular economy: Additional disclosures – Methodology on metrics
We have revised the comparative figures. Read more in Sustainability statements – Circular economy: Additional disclosures – Methodology on metrics

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Circular economy: Metrics table (continued)

Topic	Description	2024	2025
Waste diverted from disposal<br><br>by recovery operation type –<br><br>Radioactive (in tonnes)	Preparation for reuse	0.0	0.0
	Recycling	0.0	0.0
	Other recovery operations	0.0	0.0
	Amount of waste diverted from disposal by recovery operation type – Radioactive	0.0	0.0
Topic	Description	2024	2025
Waste directed to disposal by<br><br>treatment type – Non-hazardous<br><br>waste (in tonnes)1	Incineration	5,954	6,157
	Landfill	1,196	1,029
	Other disposal operations	0	0
	Amount of waste directed to disposal by treatment type – Non-hazardous waste	7,150	7,186
Topic	Description	2024	2025
Waste directed to disposal by<br><br>treatment type – Hazardous waste<br><br>(in tonnes)	Incineration	212	200
	Landfill	18	6
	Other disposal operations	0	0
	Amount of waste directed to disposal by treatment type – Hazardous waste	230	206
Topic	Description	2024	2025
Amount of waste directed to<br><br>disposal by treatment type –<br><br>Radioactive (in tonnes)	Incineration	0.0	0.0
	Landfill	0.1	0.2
	Other disposal operations	0.0	0.0
	Amount of waste directed to disposal by treatment type – Radioactive	0.1	0.2
Topic	Description	2024	2025
Non-recycled (in tonnes)1	Preparation for reuse	182	156
	Non-recycled waste (including preparation for reuse)	7,562	7,548
	Percentage of non-recycled waste (including preparation for reuse)	27.6%	26.3%

We have revised the comparative figures. Read more in Sustainability statements – Circular economy: Additional disclosures – Methodology on metrics

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Circular economy: Metrics table (continued)

Topic	Description	2024	2025
Non-hazardous waste (in tonnes)1	General waste	3,934	4,138
	Waste wood	2,842	3,401
	Construction and demolition waste	14,101	13,461
	Metals	1,410	2,246
	Paper and cardboard	1,178	1,341
	Plastic	828	1,153
	Organic waste	334	298
	Electronics	346	443
	Glass	16	13
	Other non-hazardous waste	1,355	1,219
	Total non-hazardous waste	26,344	27,713
Topic	Description	2024	2025
Hazardous waste (in tonnes)1	Hazardous liquids	852	816
	Cleaning wipes	62	65
	Empty packaging	35	20
	Batteries	8	26
	Filters	1	1
	Lamps	1	1
	Other hazardous waste	65	77
	Total hazardous waste	1,024	1,006

We have revised the comparative figures. Read more in Sustainability statements – Circular economy: Additional disclosures – Methodology on metrics

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Circular economy: Additional disclosures

Methodology on targets

This section outlines the methodology used to

define and measure our circular economy targets.

As we are currently in the process of updating our

circular economy strategy, we anticipate

introducing new and revised targets.

Parts and tools

Achieve a 90% reuse rate of parts returned from

the field and factory by 2025

For this target, we take into account the

percentage of parts that contributed to a circular

economy in the reporting year, measured in value,

and based on return and recondition rates. The

reuse and repair centers in Wilton (United States),

Hwaseong (South Korea), and Beijing (China) are

not included in the reported metric. We aim to

improve data for these locations and to

incorporate this into the metric in the future.

NPR waste (hazardous and non-hazardous)

Achieve 322 kg of waste from operations (excluding

construction and demolition waste) / per €m revenue

by 2025

Kilograms of waste are determined via

information from our waste disposal contractors

and reported in our EMS, which allows us to

monitor progress toward our target.

Achieve a 65% recycling rate of waste from operations

(excluding construction and demolition waste) by 2025

The recycling rate is calculated based on information

on waste disposal methods provided by our

waste disposal contractors.

Construction and demolition waste
Construction and demolition waste is excluded<br><br>from our targets because it does not result from<br><br>our daily operations. The amount also tends to<br><br>fluctuate over the years and can therefore make<br><br>the trend of the target metric unclear. However,<br><br>construction waste is included in our actuals.
Methodology on metrics
---

Systems

Percentage of systems sold over the past 30 years

still active in the field by 2025

We monitor the number of active systems in our

installed base – including our EUV, DUV and

PAS 5500 systems – and have calculated the

percentage of all EUV, DUV and PAS 5500

systems ever sold that are still in use. Some

systems in the field may not be serviced by

ASML, but remain operational – for the indicator

‘% of active systems’, we apply assumptions for

this portion. Based on historical information and

experience, we estimate that of the machines no

longer serviced by ASML, 33% are still active in

the field.

E5-4 Resource inflows

Resource inflows

The resource inflows needed to build our systems

consist of products, materials and their

packaging. Some inflows contain critical raw

materials and rare earths, including tantalum,

tungsten, tin and gold.

To estimate the total weight of products and

materials used, we apply an indirect approach

based on outbound shipment and waste records.

These records cover both installed base flows

(service parts and upgrades) and sales flows (new

and refurbished systems).

The key assumption underlying this methodology

is that the weight of outbound shipments and

waste (excluding construction and demolition

waste) is representative of the weight of inbound

goods.

Presenting comparative information: resource inflows

In 2024, despite our significant efforts to gather

the necessary information, we were unable to

provide data that fully met the requirements.

Consequently, in 2024, we reported a ‘-’ for the

metrics marked with footnote (1) in the Metrics

table. In 2025, an estimation approach was

developed that now also allows us to report

comparative information.

Secondary and recycled materials

To determine the weight of secondary materials

used, we add up all goods movements for parts

and packaging.

The weight of recycled components in our

inflow is estimated. For one of our systems a

full breakdown of the mass per material category

is made by subject-matter experts. Subsequently,

we determine the average recycled mass per

material from public sources. The resulting

weighted average of the share of recycled

components is applied to the weight of our inflow.

Packaging weight is estimated based on the

turnaround factor in euro’s of newly bought

transport materials compared to the total amount

of re-used transport materials during the year. For

materials where weight data is not available, the

weight is estimated by applying the median,

outlier‑adjusted convergence factor per kilogram

derived from known packaging weights.

A component can be both recycled and reused.

To avoid double-counting, recycled components

(including packaging) are only counted for the first

time they enter the production process. Reused

components (including packaging) are counted

at every subsequent entry the component makes

into the production process in the reporting year.

Biological materials

We use wood in our packaging. If certified

according to the standards of the Forest

Stewardship Council (FSC) or the Programme

for the Endorsement of Forest Certification

(PEFC), we consider it sustainably sourced. In

using wood in our packaging, we support the

cascading use of wood principles – a strategy to

use raw biomass materials in chronologically

sequential steps as long, often and efficiently as

possible for materials, and only to recover energy

from them at the end of the product lifecycle. It is

the intention that increased cascading use of

wood will contribute to more resource efficiency

and consequently reduce pressure on

the environment.

E5-5 Resource outflows

Durability

We have a shared interest with our customers

to extend the lifetime of our systems as long

as possible. This starts with the ability of our

products, components and materials to remain

functional and relevant when used as intended.

There is no industry average for our products.

Repairability

There is no established rating system for

repairability of our products. As a result we

have not included a related metric.

Recyclable content in products and their packaging

The weight of recyclable content in our outflow

is estimated. For one of our machines a full

breakdown was made of the mass per material

category by subject-matter experts. Subsequently,

we determined the average recyclable mass per

material from public sources. The resulting

weighted average of the share of recyclable

content is applied to the weight of our outflow.

Waste

The waste we report contains that which we own

or control. Waste disposal methods are reported

by our waste disposal contractors. For (leased)

office locations where waste hauler data is not

available, office waste is estimated based on

square meters – with the average office waste per

square meter for comparable offices as a proxy.

Presenting comparative information: Waste

In 2025 we identified and included waste that is

classified as waste from our own operations but

occurring at third-party warehouse locations that

had not been previously captured. The comparative

waste figure (increase of 1,101 tonnes) and waste

intensity target (increase from 295 to 322 kg

per €m revenue) are revised accordingly.

As from 2025, next to construction and

demolition waste reported by our waste haulers,

we are able to also include waste generated by

construction companies contracted by ASML.

Because we do not have actual data for all

construction sites we estimated the waste data

for those sites by multiplying project spend of the

reporting year by region-specific ASML average

construction and demolition waste factors. Using

the same conversion factors, we estimated the

comparative information and revised accordingly

(increase of 12,682 tonnes).

Radioactive waste

Our total outflow of radioactive waste is

determined in accordance with article 3(7) of

Council Directive 2011/70/Euratom. Not the full

weight reported is radioactive. The amount we

report is the complete weight of products with a

radioactive coating, as it is not possible for us to

make a reliable split. The products are stored

(indefinitely) at the Central Organization for

Radioactive Waste (COVRA) – a facility owned

by the Dutch government.

Preparation for reuse

Preparation for reuse consists of checking,

cleaning, and/or repair and recovery operations,

by which products or components of products

that have become waste are prepared so they

can be reused without any other preprocessing.

Non-recycled waste (including preparation for reuse)

This metric gives the total of all our waste that

is not recycled and includes waste prepared

for reuse.

EU Taxonomy at a glance_v4.jpg

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EU Taxonomy at a glance

Overview
The EU Taxonomy<br><br>Regulation (EU 2020/852)<br><br>is a core part of the<br><br>European Green Deal.<br><br>It supports the flow<br><br>of capital toward more<br><br>sustainable economic<br><br>activities by creating<br><br>a common language<br><br>and standardized<br><br>reporting methodology<br><br>that helps determine<br><br>which activities can and<br><br>cannot be considered<br><br>‘environmentally<br><br>sustainable’.
1	Climate change mitigation<br><br>(CCM)	4	Transition to a circular economy (CE)
---	---	---	---
2	Climate change adaptation (CCA)	5	Pollution prevention and control (PPC)
3	Sustainable use and protection of water<br><br>and marine resources (WTR)	6	Protection and restoration of biodiversity<br><br>and ecosystems (BIO)

The EU Taxonomy requires companies

to report to what extent their economic

activities are Taxonomy-eligible and aligned.

For the 2025 reporting period, non-financial

undertakings are required to disclose the

proportion of KPIs that relate to sustainable

activities. These KPIs include turnover,

capital expenditure (capex), and operational

expenditure (opex). The disclosure

indicates which activities are eligible

and aligned with one or more of the

six environmental objectives:

Summary of Taxonomy-aligned and eligible activities
The table below provides an overview of the proportion of turnover, capex and opex from products or services associated with Taxonomy-eligible and Taxonomy-aligned economic activities.
Financial year 2025
KPI<br><br>(1)	Total<br><br>(2)	Proportion of<br><br>Taxonomy<br><br>eligible<br><br>activities<br><br>(3)	Taxonomy<br><br>aligned<br><br>activities<br><br>(4)	Proportion of<br><br>Taxonomy<br><br>aligned<br><br>activities<br><br>(5)	Breakdown by environmental objectives of Taxonomy aligned activities						Proportion of<br><br>enabling<br><br>activities<br><br>(12)	Proportion of<br><br>transitional<br><br>activities<br><br>(13)	Not assessed<br><br>activities<br><br>considered<br><br>non-material<br><br>(14)	Taxonomy<br><br>aligned<br><br>activities in<br><br>previous<br><br>financial year<br><br>(N-1)<br><br>(15)	Proportion of<br><br>Taxonomy<br><br>aligned activities<br><br>in previous<br><br>financial year<br><br>(N-1) (16)
					Climate<br><br>change<br><br>mitigation<br><br>(6)	Climate<br><br>change<br><br>adaptation<br><br>(7)	Water<br><br>(8)	Circular<br><br>Economy<br><br>(9)	Pollution<br><br>(10)	Bio-<br><br>diversity<br><br>(11)
	€, in millions	%	€, in millions	%	%	%	%	%	%	%	%	%	%	€, in millions	%
Turnover	32,667.3	98%	0.0	0%									0.2%	0.0	0%
Capex	2,811.3	87%	6.7	0.25%	0.25%						0.2%		9%	74.1	2%
Opex	3,864.8	94%	0.0	0%									6%	0.0	0%
The basis for preparation, reporting scope, eligibility overview and overviews of turnover, capital expenditure and operational expenditure, including environmental objectives, key activities<br><br>and alignment assessments follow on the next pages.

All figures based on EU-IFRS1

1.All figures presented in the EU Taxonomy section have been prepared consistent with the accounting principles applied in the ASML 2025 Annual Report based on IFRS dated 25 February 2026. The Consolidated financial statements

therein have been prepared in accordance with IFRS Accounting Standards as endorsed by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code and are available at the corporate website (asml.com).

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EU Taxonomy at ASML

Basis for preparation

We prepared our EU Taxonomy disclosure in

accordance with Regulation EU 2020/852 as

supplemented with Commission Delegated

Regulations EU 2021/2139, EU 2021/2178 and

EU 2023/2486, as well as Commission Notices

answering frequently asked questions about

EU Taxonomy reporting.

Furthermore we have incorporated the

simplifications adopted in the form of

Delegated Regulation EU 2026/73 published

January 8, 2026, amending the Taxonomy

Disclosures, Climate and Environmental

Delegated Regulations. Our methodology

has not changed as a result of this.

For the EU Taxonomy assessment, we applied

a materiality threshold to focus on the activities

with the highest environmental impact in line

with the adopted simplification. Activities can

be considered non-material if they account for

less than 10% of our total revenue, capex or

opex. EU Taxonomy activities can have a

substantial contribution to multiple environmental

objectives. To avoid any double counting,

we apply a top‑down allocation of activities

included in the denominator and assign the

corresponding share to the numerator of

turnover, capex and opex. Where an activity

could relate to multiple environmental

objectives, we determine the most appropriate

objective based on the nature of the activity

and the intention with which it is performed.

Our assessment was based on our

interpretations of how the regulation applies to

our business activities and the impact thereof

on eligibility and alignment. Future guidance

could result in more accurate definitions and

altered decision-making in meeting reporting

obligations that may come into force, which

could impact future EU Taxonomy reporting.

Each step is discussed in the following section.

Reporting scope

EU Taxonomy has been prepared on

a consolidated basis, the scope of which is

the same as for the Consolidated financial

statements in line with the EU-IFRS. No

subsidiaries are exempt.

We apply a five-step approach to our EU Taxonomy assessment
	1.<br><br>Identification<br><br>of eligible<br><br>activities	2.<br><br>Substantial<br><br>contribution	3.<br><br>Do no<br><br>significant<br><br>harm	4.<br><br>Compliance<br><br>with minimum<br><br>safeguards	5.<br><br>KPI
	Eligibility	Compliance with technical screening criteria		Compliance with<br><br>minimum safeguards	Alignment with<br><br>Taxonomy

five-step_approach_to_our_EU_Taxonomy_assessment_v2.jpg

EU Taxonomy’s reporting basis differs from

that used in our Consolidated financial

statements, which are in conformity with

US generally accepted accounting principles.

EU Taxonomy is based on EU-IFRS – for this

reason, the reported turnover, capex and

opex under EU Taxonomy can differ from the

reported figures in our Consolidated financial

statements.

Nuclear and fossil gas related activities

We do not have any economic activities

related to nuclear energy and fossil gas,

meaning the Complementary Climate Delegated

Act of EU Taxonomy is considered not relevant.

Minimum safeguards

Article 18 of EU Taxonomy outlines the

minimum safeguards (MS) criteria that must be

met for an economic activity to be considered

Taxonomy-aligned. These safeguards act

as minimum governance standards to ensure

that while an activity contributes to an

environmental objective, it does not, for

example, breach human rights law – the MS

essentially work to mandate a just transition.

The MS can be categorized into four topics:

human rights (including labor and consumer

rights), anti-bribery and anti-corruption,

taxation and fair competition.

Eligibility overview

The table to the right indicates the

environmental objective, eligible activity and

the related KPI. We identified two additional

eligible activities compared to 2024, being

activity CCM 4.16 (installation and operation

of electric heat pumps) and CCA 14.2 (flood

risk prevention and protection infrastructure).

The following sections present the

assessment of the technical screening

criteria, the minimum safeguards, calculation

methodology, and the proportion of the KPIs

that are Taxonomy-eligible and aligned.

Human Rights Policy at asml.com

Environmental<br><br>objective	Taxonomy-eligible<br><br>activity	Related KPI
Circular<br><br>economy (CE)	1.2 Manufacture of<br><br>electrical and electronic<br><br>equipment	Turnover,<br><br>opex, capex
Climate change<br><br>mitigation<br><br>(CCM)	4.1 Electricity generation<br><br>using solar photovoltaic<br><br>technology	Capex
Climate change<br><br>mitigation<br><br>(CCM) and<br><br>Climate change<br><br>adaptation<br><br>(CCA)	4.9 Transmission and<br><br>distribution of electricity
Climate change<br><br>mitigation<br><br>(CCM)	4.16 Installation and<br><br>operation of electric heat<br><br>pumps
Circular<br><br>economy (CE)	5.1 Repair,<br><br>refurbishment and<br><br>remanufacturing	Turnover
	5.2 Sale of spare parts
	5.4 Sale of second-hand<br><br>goods
Climate change<br><br>mitigation<br><br>(CCM) and<br><br>Climate change<br><br>adaptation<br><br>(CCA)	7.2 Renovation of<br><br>existing buildings	Capex
	7.7 Acquisition and<br><br>ownership of buildings
Climate change<br><br>adaptation<br><br>(CCA)	14.2 Flood risk<br><br>prevention and<br><br>protection infrastructure	Capex

The EU Taxonomy alignment assessment

considers whether the economic activity:

•Is included in the EU Taxonomy list of

eligible activities (step 1).

•Makes a substantial contribution to at

least one of the environmental objectives

(step 2).

•Does not significantly harm (DNSH)

any of the other objectives (step 3).

The substantial contribution and DNSH

criteria are collectively referred to as

the ‘technical screening criteria’.

The alignment assessment also considers

whether the company meets minimum

safeguards constituted chiefly by the

OECD Guidelines and UN Guiding

Principles (step 4).

If all criteria are met, the economic activity

is considered Taxonomy-aligned and

included in the KPIs (turnover, capex,

opex) proportion of Taxonomy aligned

activities (step 5).

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Turnover

Taxonomy eligibility and alignment

assessment

We assessed the eligibility and alignment of our

economic activities in 2025 against the relevant

environmental objectives.

Turnover

The cornerstone of our circular approach is our modular

design strategy, which allows us to upgrade a system

without replacing the entire product. Extending a product’s

lifetime is also possible by refurbishing systems after

their use, and repurposing them for other customers

and semiconductor environments.

Our total turnover under the EU Taxonomy Regulation

comprises the total net sales in the Consolidated

statement of profit or loss in the Consolidated financial

statements. We consider our net system sales (new

systems) and certain activities related to net service

and field option sales, such as installation and relocation,

as eligible for CE 1.2 Manufacture of electrical and

electronic equipment.

Net service and field option sales considered eligible under

CE 5.1 Repair, refurbishment and remanufacturing, include

warranties and service contracts to extend a product’s

lifetime and restore or improve performance or functionality.

Financial year 2025
Economic activities<br><br>(1)	Code<br><br>(2)	Taxonomy eligible<br><br>KPI (Proportion of<br><br>Taxonomy eligible<br><br>turnover)<br><br>(3)	Taxonomy aligned<br><br>KPI (monetary value<br><br>of turnover)<br><br>(4)	Taxonomy aligned<br><br>KPI (Proportion of<br><br>Taxonomy aligned<br><br>turnover)<br><br>(5)	Environmental objective of Taxonomy aligned activities						Enabling activity<br><br>(12)	Transitional activity<br><br>(13)	Proportion of<br><br>Taxonomy aligned in<br><br>Taxonomy eligible<br><br>(14)
					Climate<br><br>change<br><br>mitigation<br><br>(6)	Climate<br><br>change<br><br>adaptation<br><br>(7)	Water<br><br>(8)	Circular<br><br>Economy<br><br>(9)	Pollution<br><br>(10)	Bio-<br><br>diversity<br><br>(11)
		%	€, in millions	%	%	%	%	%	%	%	(E where applicable)	(T where applicable)	%
Manufacture of electrical and electronic equipment	CE 1.2	82%	0.0	0%				0%					0%
Repair, refurbishment and remanufacturing	CE 5.1	14%	0.0	0%				0%					0%
Sale of spare parts	CE 5.2	0.2%	0.0	0%				0%					0%
Sale of second-hand goods	CE 5.4	2%	0.0	0%				0%					0%
Sum of alignment per objective								0%
Total		98%	0.0%	0%				0%					0%

Spare parts are offered to customers when needed,

which qualifies under CE 5.2 Sale of spare parts, while

the resale of systems previously used by customers falls

under CE 5.4 Sale of second-hand goods. Non-eligible

turnover relates to activities outside the scope of the

Climate and Environmental Delegated Acts, such as

software, training, and other service projects. Activities

below the threshold compared to the overall turnover,

as defined by the EU Taxonomy Regulation, have been

excluded and are reported as ‘not assessed activities

considered non-material’. For turnover, these relate to

our non-material subsidiaries.

For all our eligible circular economy activities, we assessed

the technical screening criteria to determine the conditions

under which the activities qualified as substantially

contributing to the transition to a circular economy, and

whether those activities caused no significant harm to

any of the other environmental objectives.

The Manufacture of electrical and electronic equipment

(CE 1.2) and the other activities related to turnover

(Repair, refurbishment and remanufacturing (CE 5.1), Sale

of spare parts (CE 5.2) and Sale of second-hand goods

(CE 5.4)) did not meet the technical screening criteria.

This is mainly because we do not meet all the

requirements on design for recyclability and dismantling,

public disclosure of information on substances of

| Turnover | | --- || < | Not eligible | 2.1% | | --- | --- | --- | | < | Eligible – Not aligned | 97.7% | | < | Eligible – Aligned | 0% | | < | Not assessed activities considered non-material | 0.2% |

concern, and providing standardized end‑of‑life

information to customers. Although our systems are

built in a modular way, their high level of engineering

complexity, the large number of individual parts, and

the fact that components are not always separable (for

example due to glued or bonded assemblies) mean

that not all components can be reused or recycled. As

a result, we do not have a waste management plan that

ensures reuse or recycling of all materials across the

thousands of parts in each system. We will continue to

focus on increasing the number of components that can

be reused or recycled and on extending the lifetime of

systems through refurbishment and redesigning parts

to prevent obsolescence. These constraints also apply

to activities CE 5.1 and CE 5.4.

For this reason, we are reporting 0% aligned activities

for these economic activities. Given the nature and

complexity of our systems and the strict, prescriptive

requirements of the EU Taxonomy, the criteria are not

expected to be achievable in full for our activities in the

foreseeable future, despite our efforts. We currently do

not have objectives and plans (capex plans as referred

to by the Disclosures Delegated Act) aimed at achieving

alignment for these economic activities.

Circular economy – Parts and tools

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	206
General disclosures	Environmental	Social	Governance
---	---	---	---

Capital expenditure

The proportion of total capex relating to Taxonomy-

eligible activities is determined by assessing the

economic activities for each significant asset group.

Asset groups below the threshold compared to

the overall capex, as defined by the EU Taxonomy

Regulation, have been excluded and are reported

as ‘not assessed activities considered non-material’.

Our total capex under the EU Taxonomy Regulation

comprises the following items in the Consolidated

financial statements:

•Additions in property, plant and equipment (Note 13)

•Additions in intangible assets, net (Note 12)

•Additions to right-of-use assets and lease liabilities

(Note 14)

We renovated multiple buildings over the last year.

The corresponding capex is considered eligible under

activity CCM 7.2 and CCA 7.2 Renovation of existing

buildings, as the focus of the renovation was to improve

energy efficiency rather than circularity (CE 3.2).

We also carried out several construction projects.

The capex corresponding to these projects is considered

eligible under economic activity CCM 7.7 and CCA 7.7

Acquisition and ownership of buildings. In cases where

the construction included the installation of electric

heat pumps, the related capex is considered separate

from CCM 7.7 and CCA 7.7 and eligible under CCM

4.16 Installation and operation of electric heat pumps.

Additionally, we undertook a flood prevention project to

protect our cleanrooms from flooding. The corresponding

capex is considered eligible under CCA 14.2 Flood risk

prevention and protection infrastructure.

The capex related to Taxonomy-eligible activities includes

eligible capitalized R&D costs. R&D is an integral part of

our operations, and it relates to the design, manufacturing

and technology of our products – which is eligible under

CE 1.2 Manufacture of electrical and electronic

equipment. Similarly, capex related to machinery and

equipment is associated with our Taxonomy-eligible

economic activity CE 1.2.

Non‑material activities relate to subsidiaries, right‑of‑use

assets, office furniture and equipment, and smaller

construction projects, which individually and collectively

fall below the materiality threshold and are therefore

presented as ‘not assessed activities considered

non‑material’.

| Capital expenditure | | --- || < | Not eligible | 3.4% | | --- | --- | --- | | < | Eligible – Not aligned | 87.0% | | < | Eligible – Aligned | 0.2% | | < | Not assessed activities considered non-material | 9.4% |

For all our eligible capex activities, we assessed the

technical screening criteria, consisting of the substantial

contribution and DNSH criteria.

For all eligible construction and renovation activities,

we conducted a physical climate risk assessment in

accordance with Appendix A to the Climate Delegated

Act, as required to meet the DNSH criteria. In 2025,

we continued to apply the TCFD guidelines to assess

physical and transition risks and opportunities under

both a 1.5°C and a 4°C climate scenario.

The assessment also considered the impacts of climate-

related risks and opportunities, including the potential

effect on ASML through its suppliers and customers.

The risk of physical climate hazards at the construction

sites was rated ‘low’, meaning the DNSH criteria were

met without the need for adaptation measures. The full

results of the assessment, including the identification

of mitigating measures, are further integrated into our

ERM process.

available at asml.com

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General disclosures	Environmental	Social	Governance
---	---	---	---

Capital expenditure (continued)

Additions to property, plant and equipment:

The buildings in scope for renovation (CCM 7.2 and

CCA 7.2) that met the substantial contribution criteria by

reducing the primary energy demand by more than 30%

did not meet the DNSH criteria relating to water-usage –

and, as such, we report 0% alignment on CCM 7.2 and

CCA 7.2.

Investment decisions related to newly constructed or

renovated buildings were not based on the detailed EU

Taxonomy technical screening criteria. However, other

sustainability considerations were applied: where relevant,

projects were assessed using the criteria and governance

processes defined in our Green Bond Framework.

A subset of buildings included in scope for CCM 7.7 and

CCA 7.7 Acquisition and ownership of buildings meet the

technical screening criteria, resulting in 0.2% of aligned

activities. Our eligible investments in solar panels (CCM

4.1) also meet the technical screening criteria, resulting in

an additional 0.05% of aligned activities.

Our investments in the energy grid in Veldhoven (CCM

4.9 and CCA 4.9), the installation of electric heat pumps

(CCM 4.16) and our flood prevention project (CCA 14.2)

did not meet the technical screening criteria. Although we

are continuously working to improve responsible waste

handling and recycling practices, we were not able to

demonstrate full alignment with the DNSH requirements

related to waste management for these activities.

Since the technical screening criteria for our activities

under circular economy (CE 1.2) are not met as described

in the section ‘Turnover’, we also report 0% alignment

related to additions to machinery and equipment.

Additions to right-of-use assets and lease liabilities:

Additions to right-of-use assets were considered below

the threshold compared to the overall capex, as defined

by the EU Taxonomy Regulation. They have been

excluded and are reported as ‘not assessed activities

considered non-material’.

Additions to intangible assets:

Since the technical screening criteria for our activities

under circular economy (CE 1.2) are not met as described

in the section ‘Turnover’, we also report 0% alignment

related to capitalized R&D costs.

Capex
Financial year 2025
Economic activities<br><br>(1)	Code<br><br>(2)	Taxonomy eligible<br><br>KPI (Proportion of<br><br>Taxonomy eligible<br><br>capex)<br><br>(3)	Taxonomy aligned<br><br>KPI (monetary value<br><br>of capex)<br><br>(4)	Taxonomy aligned<br><br>KPI (Proportion of<br><br>Taxonomy aligned<br><br>capex)<br><br>(5)	Environmental objective of Taxonomy aligned activities
					Climate<br><br>change<br><br>mitigation<br><br>(6)	Climate<br><br>change<br><br>adaptation<br><br>(7)	Water<br><br>(8)	Circular<br><br>Economy<br><br>(9)	Pollution<br><br>(10)	Bio-<br><br>diversity<br><br>(11)	Enabling activity<br><br>(12)	Transitional activity<br><br>(13)	Proportion of<br><br>Taxonomy aligned in<br><br>Taxonomy eligible<br><br>(14)
		%	€, in millions	%	%	%	%	%	%	%	(E where applicable)	(T where applicable)	%
Manufacture of electrical and electronic equipment	CE 1.2	55.3%	0.0	0%				0%					0%
Electricity generation using solar photovoltaic technology	CCM 4.1	0.05%	1.3	0.05%	0.05%								100%
Transmission and distribution of electricity	CCM 4.9<br><br>CCA 4.9	1.3%	0.0	0%	0%	0%							0%
Installation and operation of electric heat pumps	CCM 4.16	0.5%	0.0	0%	0%								0%
Renovation of existing buildings	CCM 7.2<br><br>CCA 7.2	6.2%	0.0	0%	0%	0%							0%
Acquisition and ownership of buildings	CCM 7.7<br><br>CCA 7.7	23.3%	5.4	0.2%	0.2%	0.2%					E		0.8%
Flood risk prevention and protection infrastructure	CCA 14.2	0.3%	0.0	0%		0%							0%
Sum of alignment per objective					0.25%	0.2%		0%
Total		87%	6.7	0.25%	0.25%	N/A		0%			N/A		100.8%
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	208
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Operational expenditure

EU Taxonomy defines the denominator of the opex KPI

as any direct non-capitalized costs that relate to R&D,

90709709291540

building renovation, short-term lease, maintenance and

repair, and any other direct expenditures relating to the

day-to-day servicing of assets of property, plant and

equipment by the undertaking party, or third party to

whom activities are outsourced, that are necessary to

ensure the continued and effective functioning of

such assets.

Under this definition, the R&D costs in the Consolidated

financial statements are considered eligible under CE 1.2.

The remaining opex is considered below the threshold

compared to the overall opex, as defined by the EU

Taxonomy Regulation. It has been excluded and is reported

as ‘not assessed activities considered non-material’.

| Operational expenditure | | --- || < | Not eligible | 0% | | --- | --- | --- | | < | Eligible – Not aligned | 94% | | < | Eligible – Aligned | 0% | | < | Not assessed activities considered non-material | 6% |

We assessed the economic activities of the R&D costs

that are not capitalized but accounted for in

our Consolidated statement of profit or loss associated

with CE 1.2 Manufacture of electrical and electronic

equipment. Since the technical screening criteria for our

activities under circular economy (CE 1.2) are not met as

described in the section ‘turnover’, we also report 0%

alignment related to assets and processes associated

with the economic activities under circular economy.

Opex
Financial year 2025
Economic activities<br><br>(1)	Code<br><br>(2)	Taxonomy eligible<br><br>KPI (Proportion of<br><br>Taxonomy eligible<br><br>opex)<br><br>(3)	Taxonomy aligned<br><br>KPI (monetary value<br><br>of opex) (4)	Taxonomy aligned<br><br>KPI (Proportion of<br><br>Taxonomy aligned<br><br>opex) (5)	Environmental objective of Taxonomy aligned activities
					Climate<br><br>change<br><br>mitigation<br><br>(6)	Climate<br><br>change<br><br>adaptation<br><br>(7)	Water<br><br>(8)	Circular<br><br>Economy<br><br>(9)	Pollution<br><br>(10)	Bio-<br><br>diversity<br><br>(11)	Enabling activity<br><br>(12)	Transitional activity<br><br>(13)	Proportion of<br><br>Taxonomy aligned in<br><br>Taxonomy eligible<br><br>(14)
		%	€, in millions	%	%	%	%	%	%	%	(E where<br><br>applicable)	(T where applicable)	%
Manufacture of electrical and electronic equipment	CE 1.2	94%	0.0	0%				0%					0%
Sum of alignment per objective								0%
Total		94%	0%	0%				0%					0%
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	209
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Other disclosures: Water management in our own operations

| Our objective | | --- || We aim to use water in our own operations responsibly, recycle efficiently and reduce our environmental impact. | | --- || Why it matters | | --- |

The combination of climate change and

increased water demand means droughts are

becoming more extreme and unpredictable,

with water becoming a scarce resource in

some locations.

In comparison to the semiconductor

industry as a whole, the water consumption

in our own operations is relatively small.

When printing patterns on wafers through

lithography, our systems at our customers’

sites also use relatively small amounts of

water compared to other steps in the total

semiconductor manufacturing process,

such as chemical mechanical polishing

and wafer cleaning.

Our water-related risk is therefore low

compared to that of our customers.

However, as a responsible business and

with our sites in San Diego (US), Veldhoven

(the Netherlands) and Berlin (Germany)

located in areas of high water stress, we

promote efficient water management and

recycling across our sites and processes.

In this section we report on our water

management in our own operations, although

this was not identified as a material topic in

our DMA.

Target and performance

In 2025, our total water consumption was

507,740 m3. We monitor and evaluate our

water management and water consumption

trend quarterly, but have no target for water

management in our own operations.

Our actions and resources

In our factories, we use water in three

key ways. Firstly, to remove heat loads

and maintain the systems at a constant

temperature – internal cooling circuits are

all designed as ‘closed-loop’ (recycling)

systems to limit water consumption.

Secondly, these heat loads are eventually

removed in cooling towers using evaporation

of water, which accounts for the majority

of our water consumption. And, finally,

DUV systems use ultrapure water, which

is currently only partially recycled.

On a global scale, in 2025 we improved

the data-gathering process on our water

consumption. Furthermore, at our Veldhoven

campus in the Netherlands, we focused on:

Topic	Description	2025
Water<br><br>consumption<br><br>in our own<br><br>operations<br><br>(in 1,000 m3)	Total water consumption	508
	In areas at water risk, including areas of high-water stress	365
	Total recycled and reused	7
	Water intensity: Total water consumption in our own operations<br><br>per revenue (in m3/€m revenue)	16

•Executing a rain water capture, infiltration

and storage project. The capex of this

is assessed under EU Taxonomy activity

CCA 14.2 flood risk prevention and

protection infrastructure.

•Optimizing the reuse of ultrapure water.

•Implementing energy grid improvements

to use heat from process cooling to heat

buildings, reducing the cooling load by

cooling towers.

•Replacing old cooling towers with hybrid

ones to reduce water loss.

•Replacing sanitary equipment with water-

efficient alternatives.

Water waste treatment installations can

facilitate responsible wastewater management

and allow for water reuse. For our water

ambition we recycle our ultra-pure water

at some of our manufacturing sites.

Looking ahead

We remain committed to continuously

improving water efficiency by expanding

closed-loop cooling systems and increasing

the reuse of ultrapure water in our operations.

Our focus will be on enhancing data collection

and analysis to identify strategic opportunities

for reduction and reuse across our sites.

Methodology on metrics

Below we include the methodology for

water consumption to reflect our integrated

approach to resource efficiency and

sustainable use of natural resources.

Water consumption

Water consumption, recycling, reuse and storage

Water consumption is the amount of water

used by our processes and not discharged

back into the water environment or to a third

party over the course of the reporting period.

This is calculated as the difference between

water withdrawal and water discharge.

Water withdrawal is the total volume of water

sourced from public water utilities used across

all manufacturing operations and offices. We

only source potable water. Data is provided by

the water supplier for all manufacturing sites

and large offices. For leased office locations

where water supplier data is unavailable,

water withdrawal is estimated based on

the square meters leased.

Water discharge refers to the volume of

water returned to sewage and wastewater

treatment systems.

For manufacturing sites, data is either

measured for the total site or calculated as

the difference between the withdrawal and

the cooling tower evaporation. For offices,

the water discharge is considered to be

equal to the withdrawal.

Water recycled or reused concerns the volume

of water reused within our processes before

we discharge it.

Water stored relates to the total capacity

of water storage on site. These serve as

operational back-up systems for failures in

water supplies or as storage for firefighting

water. We report the total volume of our

water tanks (>1000 m3) used for operations

and safety reasons. Following assessment,

the reported volume for 2025 was zero and

therefore not included in the table.

The metrics for the reporting of water are

applied in 2025 for the first time. In absence

of required data over 2024, it is impracticable

to report comparative figures.

Areas at water risk, including areas of

high-water stress

Areas at water risk are manufacturing sites

with water stress scores equal to or higher

than three, based on the Aqueduct Water

Risk Atlas tool of the World Resources Institute

(WRI). This concerns our site in San Diego.

For areas of high water stress, we consider

the regions where the percentage of total

water withdrawn is high (40-80%) or

extremely high (greater than 80%) in the

Aqueduct Water Risk Atlas. This concerns

our manufacturing sites in San Diego,

Veldhoven and Berlin.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Social at a glance

Our ambition
We aim to deliver<br><br>responsible growth<br><br>that benefits all our<br><br>stakeholders – providing<br><br>an attractive workplace<br><br>for all, building a<br><br>responsible value chain,<br><br>fueling innovation in our<br><br>ecosystem and being a<br><br>valued partner to<br><br>communities.
On the following pages, we set out<br><br>our approach and progress to date.		Attractive<br><br>workplace for all
---
We strive to create a culture that empowers<br><br>our workforce to deliver on our vision by<br><br>ensuring people are proud to be part of<br><br>ASML and engaged with our ambitions.<br><br>We aim to attract and retain a healthy,<br><br>diverse and engaged workforce.
Read more on page 211 >
We’ll do this by focusing<br><br>on the following sub-topics:
•Talent attraction, employee<br><br>engagement and retention<br><br>•Learning and development<br><br>•Inclusion and diversity<br><br>•Occupational health and safety<br><br>•Labor conditions<br><br>•Well-being		Responsible value chain
---
We seek to work with value chain partners<br><br>that are aligned with our values and<br><br>committed to upholding international<br><br>environmental and human rights standards.<br><br>We aim to prevent, mitigate and manage<br><br>adverse environmental and human<br><br>rights impacts in our value chain.
Read more on page 237 ><br><br>We’ll do this by focusing<br><br>on the following sub-topics:<br><br>•Responsible product design<br><br>•Responsible supply chain<br><br>•Responsible product use		Innovation<br><br>ecosystem
---
We’re fostering innovation through<br><br>collaboration and partnerships – where<br><br>trust and knowledge-sharing serves as<br><br>the foundation for long-term cooperation.<br><br>We aim to build a thriving, multi-<br><br>regional innovation ecosystem that<br><br>helps solve some of humanity’s<br><br>toughest challenges.
Read more on page 246 >
We’ll do this by focusing<br><br>on the following sub-topics:
ESG innovation:<br><br>•ESG-focused research<br><br>•ESG-focused startups and scaleups<br><br>•ESG-focused platforms and<br><br>collaborations

Valued partner in our communities
We believe we have a responsibility to be a<br><br>positive contributor and valued partner to<br><br>the communities in which we operate.<br><br>We aim to ensure that ASML and<br><br>communities benefit from each<br><br>other’s presence and support<br><br>each other’s development.
Read more on page 251 ><br><br>We’ll do this by focusing<br><br>on the following sub-topics:<br><br>•Attractive communities<br><br>•Inclusive communities<br><br>•Investing in STEM education

Sustainability_Social_Attractive-workplace-for-all_Pg-226_v2.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all

We aim to attract and retain a healthy, diverse and engaged workforce

Why it matters

...for the planet
As an employer we have a responsibility to provide a working environment<br><br>where people can develop their talents, feel respected and safe, and be<br><br>healthy and thrive. We want to foster an exceptional workplace for our<br><br>exceptional talent.<br><br>This includes creating an inclusive culture where people are supported<br><br>in their learning, leadership, advancement and well-being – and where<br><br>international human rights are upheld and fair employment opportunities<br><br>are provided.<br><br>By prioritizing employee development and well-being, we also empower<br><br>employees to contribute meaningfully to their communities.		...for ASML
---
As a key partner in the semiconductor ecosystem, we have a responsibility<br><br>to deliver the technology our customers need to drive innovation – and<br><br>healthy, diverse, engaged, highly skilled people are key to our performance<br><br>and long-term success.<br><br>To maintain our fast pace of innovation, we need to attract and retain the<br><br>best talent. By investing in our people, we help them reach their full potential<br><br>and enable us to keep powering technology forward.<br><br>ASML is preparing for a period of significant business growth – strong<br><br>leadership, people development and inclusion will be crucial for this and<br><br>for our future success.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Employee engagement<br><br>score (three-year<br><br>rolling average)	Employee inclusion<br><br>score (three-year<br><br>rolling average)
78.9%	80.2%
2024: 78.9% vs. benchmark -2.1%	2024: 82.4% on par vs. benchmark
2025 target: >-2.0% vs. top 25%<br><br>performing companies.<br><br>Employee engagement score<br><br>against benchmark 2025 -2.3%	2025 target: >-3.0% vs. top 25%<br><br>performing companies.<br><br>Employee inclusion score<br><br>against benchmark 2025 -0.6%
Attrition rate	Gender diversity: % inflow<br><br>of women (all job grades)
4.1%	29%
2024: 3.8%	2024: 26%
2025 target: <7%	2025 target: 24%
Gender diversity: %<br><br>representation of women<br><br>in job grade 13+	Gender diversity: % inflow<br><br>of women to job grade 9+
16%	28%
2024: 12%	2024: 30%
2026 target: 14%	2025 target: 24%

Our sub-topics

Talent attraction, employee<br><br>engagement and retention	Learning and<br><br>development	Inclusion and<br><br>diversity	Occupational health<br><br>and safety	Labor conditions	Well-being

ASML_Sustainability_Social_Attractive-workplace-for-all_v3.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all (continued)

Key
	Actual positive impact	Risk
	Potential positive impact	Opportunity
	Actual negative impact
	Potential negative impact

Our material impacts, risks and opportunities relating to Attractive workplace for all.

Own operations

Impact on employees by providing fair labor<br><br>conditions and associated risk of (perception of)<br><br>unfair working and employment conditions at<br><br>ASML, affecting ability to engage and retain<br><br>talent (Labor conditions)
Impact on employees by facilitating knowledge<br><br>and skills development which contribute to<br><br>continued employability and professional<br><br>growth, and associated risk of failure to attract,<br><br>develop and retain talents with adequate skills<br><br>and knowledge (Learning and development)		Potential impact in case of failure to effectively<br><br>manage employees’ well-being and work-life<br><br>balance, including excessive overtime, resulting<br><br>in stress, health issues and increased likelihood<br><br>of accidents, and associated risk of failure to<br><br>engage and retain talent (Well-being)
---
Potential impact on workers in case of failure to<br><br>manage occupational health and safety, and<br><br>associated risk in case this impact materializes<br><br>(Occupational health and safety)		Potential impact on workers’ right to freedom of<br><br>association, collective bargaining and social<br><br>dialogue in certain regions (Labor conditions)
---
Potential impact on workers as a result of<br><br>discrimination and unequal treatment, including<br><br>pay inequality, as well as violence and harassment<br><br>in the workplace (Inclusion and diversity)		Failure to comply with health- and safety-related<br><br>regulations or implement effective health and<br><br>safety practices could result in liabilities and<br><br>reputational risk (Occupational health and safety)
---
Failure to comply with labor law could lead to<br><br>sanctions, financial loss or reputational damage<br><br>(Labor conditions)

Levers for Action.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing attractive workplace for all

Our approach

Our people strategy builds on a solid

foundation and the strength of our culture

and values. It defines how we develop our

people and scale our organization to secure

our business ambitions.

business strategy – Create an exceptional workplace

Our Attractive workplace for all approach

applies to all employees within the ASML

group of companies. In some cases, its

scope extends to non-employees.

Announcement of changes in the

Technology and IT organizations in 2026

In our January 2026 All-employee meeting,

we announced our intention to strengthen

our focus on engineering and innovation

through the streamlining of the Technology

and IT organizations. The proposed changes

could ultimately result in a net reduction of

around 1,700 positions, mainly in the

Netherlands and some in the United States.

In supporting our employees, we have

created dedicated channels for all and

planned information sessions for those

directly affected.

In 2026, we will work closely with our social

partners to discuss the intent and extent of

these changes while adhering to local laws,

and upholding commitment to act

responsibly – with care, speed,

transparency, and fairness.

our CEO

The Attractive workplace for all approach is

closely linked to our Code of Conduct, the

RBA Code of Conduct, our Human Rights

Policy and Group Diversity and

Inclusion Policy.

disclosures – ESG sustainability governance –

Environmental and human rights due diligence and

our Human Rights Policy and Group Diversity and

Inclusion Policy at asml.com

Material topics

We have identified the following material

workforce-related sub-topics:

•Talent attraction, employee engagement

and retention

•Learning and development

•Inclusion and diversity

•Occupational health and safety

•Labor conditions

•Well-being

Levers for action

Talent attraction, employee engagement

and retention

Attracting, engaging and retaining talent

requires us to provide an outstanding

experience for all (potential) employees.

Each of our Attractive workplace for all

sub topics are designed to help us realize

this, as well as focus on strengthening

our employer value proposition, providing

feedback tools and maintaining

attractive remuneration.

Talent attraction

To attract the talent, we leverage labor

market intelligence and strengthen our

employer value proposition through

employer branding activities. In addition,

we run talent engagement activities and

maintain a talent database to sustain

ongoing conversations with potential

future employees.

Employer brand rankings provide us

with useful insights into priority target

groups, helping us improve the candidate

experience and accelerate hiring.

Employee engagement

Employee engagement depends on a

wide variety of factors, such as well-

being, onboarding experience, learning

and development, inclusion and diversity

(I&D), labor practices and leadership. Their

overall impact is measured by our annual

employee engagement survey – a crucial

tool for collecting employee feedback that

provides insights enabling us to improve the

employee experience and refine our policies.

Employee retention

Employee retention is important for

maintaining knowledge, team stability

and efficiency. It depends on the success

of a wide range of internal activities, as well

as external factors in the job market such

as maintaining attractive remuneration. We

review and adjust our pay scales every year,

using third-party market benchmarks from

selected peer companies – enabling us to

offer competitive remuneration packages.

We recognize that employees leaving also

presents an opportunity to bring in new –

and enhance existing – talent. We therefore

strive for a healthy attrition rate – that is,

the percentage of employees leaving the

company – and monitor attrition.

Learning and development

We’re committed to providing employees

with the knowledge, skills and competencies

needed to maintain our technological

leadership and keep pace with innovation.

Learning

The ASML Academy brings together all

our learning and knowledge-management

efforts, making it easy for employees to

access the resources they need to succeed

in their roles. Our approach follows the

70:20:10 learning model: 70% on-the-

job learning, 20% coaching and 10%

training courses.

Employee feedback and our global

dashboard helps us continuously improve

by monitoring the quality and impact of

our learning initiatives.

Development

We encourage employees to take

ownership of their personal development

and career growth. We offer tailored

development opportunities and promote

internal job mobility.

We strive to provide employees with

continuous support in their development

and performance through regular

performance reviews and by sharing

career development opportunities.

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing attractive workplace for all (continued)

Levers for action (continued)

Our annual performance cycle – Develop

& Perform (D&P) – includes key moments

throughout the year:

•Goal setting: Aligning individual and

team goals to ASML strategy and values,

and documenting development items

and longer-term ambitions.

•Development conversations:

Recommended at least twice a year to

discuss feedback, progress, behavior

and recognition – focusing on growth

and next steps.

•End-of-year summary: Recognition

and reward for individual contributions

and sharing of performance ratings.

To ensure balanced performance ratings,

managers assess how well employees

meet expectations in three areas: job

responsibilities, goal achievement and

behavior. Our ASML Berlin GmbH

employees have not yet been fully

integrated into the D&P program.

To guide our D&P approach, we track

the percentage of our employees with

a performance rating and/or at least

one development item.

Inclusion and diversity

We are dedicated to building a safe and

inclusive environment where everyone feels

valued, respected and can fully contribute.

We believe unique and diverse teams are

essential to our success, fueling innovation

and creativity across our organization.

We’re committed to treating everyone fairly

and equally, to being an equal-opportunity

employer, and to cultivating an inclusive

and diverse workforce.

Aligning with our Code of Conduct, we

do not tolerate any form of discrimination,

harassment, bullying or retaliation. We aim to

hire, promote and compensate our workforce

without regard to age, race, color, religion,

sex, gender, gender identity or expression,

sexual orientation, national origin and/or

other characteristics. We make reasonable

accommodations to enable everyone –

including employees who are neurodiverse,

or who have special needs or disabilities –

to effectively perform their jobs.

Our Global Inclusion and Diversity Council

(GIDC), chaired by the CEO, comprises

senior leaders who shape and oversee our

I&D program that consists of 14 sponsored

projects which cover a broad range of I&D

topics. The GIDC proposes initiatives to

the Board of Management (BoM), promotes

and monitors I&D initiatives, and leads

company-wide accountability for our goals.

A dedicated I&D team drives the initiatives

across ASML. There is a US I&D Council with

a similar make-up of US business leaders.

We track our progress primarily through

employee feedback and performance

indicators such as our inclusion score.

On April 21, 2025, the US executive order

(14173) titled, “Ending Illegal Discrimination

and Restoring Merit-Based Opportunity,”

took effect. We implemented two changes

to comply with the requirements therein while

staying true to our values. US employees are

now excluded from the scope of our diversity

targets and KPIs, and diversity metrics have

been removed from the performance share

plans applying to senior management in

the US.

Attractive workplace for all – Inclusion and diversity

and in our Group Diversity and Inclusion Policy

at asml.com

Occupational health and safety

We strive to provide injury-free, healthy

working conditions for everyone on our

premises – including employees, non-

employee workers, suppliers, customers

and visitors – by eliminating hazards,

reducing safety risks and preventing

occupational ill health.

While risk cannot be entirely eliminated,

we take a proactive approach at all levels

to identify and mitigate potential issues.

This includes minimizing risks by design,

and providing people with the right

protection, procedures and processes

to keep them safe.

To achieve our ongoing ambition of zero

recordable work-related injuries and illness,

we focus on our Environmental Health and

Safety (EHS) management system, safety

culture and training. We follow legal and

government guidelines and requirements,

and strive to meet industry best practices.

Our EHS and Business Continuity

Committee, chaired by the COO,

oversees and approves our EHS strategy.

Line managers are responsible for day-

to-day EHS performance, supported by

the EHS Competence Center (EHS experts)

– which defines standards, shares best

practices and helps managers implement

them. We track our targets and actions

through our recordable incident rate.

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing attractive workplace for all (continued)

Our Occupational, Health and Safety (OHS) management system

Levers for action (continued)

Labor conditions

We aim to provide fair labor conditions

and social protection for all our workers,

regardless of their location and whether

they are on fixed or temporary contracts.

This includes, in accordance with local laws,

respecting the rights of all workers to form

and join trade unions of their own choosing,

to bargain collectively and to engage in

peaceful assembly – as well as the right

for workers to refrain from such activities.

We are committed to paying fair and

balanced salaries and benefits. Employee

wages must, at a minimum, comply with

all applicable wage laws, including those

relating to living wages, equal wages for

all genders, overtime hours and legally

mandated benefits.

We believe we have robust, longstanding

compensation policies in place that aim

to ensure people performing and working

in similar jobs are paid similarly. This is

reflected in how our pay structures are

designed, taking account of pay progression

to align with our employees’ growth within

roles as well as progression to new roles.

We are transparent with our employees

around our compensation policies and

practices, and our Rewards team continually

works to ensure our policies and processes

are fairly and universally applied.

We periodically review how our remuneration

compares with the market benchmark for

technology professionals in the regions we

operate in and, where necessary, make

changes to policies and levels.

Meeting adequate living-wage requirements

means ensuring employees earn salaries

that meet their and their families’ basic

needs to maintain an adequate standard of

living, in the circumstances of each country

where we operate. We compare our lowest

base salary with the local minimum wage

and local living wage in the countries and

regions where we operate.

We strive to respect the right to rest

and leisure, including reasonable working

hours. Work weeks are not to exceed the

maximum set by local laws, where stipulated

– otherwise, we apply the International Labor

Standards of the International Labour

Organization (ILO) and the RBA norms,

including those applicable to overtime hours.

Unless local laws stipulate otherwise, work

weeks should not be more than 60 hours

including overtime, except in an emergency

or unusual situation. The standard in the

locations where we operate is 40 hours

on average.

We monitor the effectiveness of our policies

and actions regarding labor conditions by

tracking employee engagement, compliance

with local laws and a set of performance

indicators – including the number and

percentage of employees covered by

collective bargaining agreements and

worker representation, the percentage

paid an adequate wage, incidents reported

via our Speak Up Service, and occupational

health and safety incidents reported via

our EHS management system.

Well-being

We support our employees in achieving

a balance between family and work at

different stages of their life. We look at

well-being holistically and strive to integrate

it into everyone’s day-to-day work.

We have identified four well-being

dimensions around which our programs,

tools and resources are provided: mental;

physical; social; and financial. Our well-

being framework brings together all of our

well-being activities to drive initiatives both

globally and regionally to meet local needs.

Well-being offerings include general

support, training and masterclasses,

well-being events, and physical and mental

health checks for employees (and in some

cases non-employee workers). We have an

employee assistance program in all

countries, offering support for employees

with personal and/or work-related problems

that may impact their job or mental or

emotional well-being.

Our employee well-being score provides

insights into our well-being approach.

Our established OHS management

system is implemented at all our

sites and customer services

locations worldwide, covering

everyone whose workplace is

controlled by ASML – including

all our employees and other

workers not employed by us.

The system is designed to effectively

integrate OHS objectives, plans,

processes, standards and behaviors into

their daily work. The system is structured

in accordance with the ISO 45001

(occupational health and safety) standard,

and is assessed annually as part of our

internal corporate EHS audit program.

Our OHS management system covers:

•Safety training and engagement:

Our people are trained on safety

requirements, and anyone accessing our

premises and customer sites – including

contractors and suppliers – are informed

of our safety rules and requirements. Role-

based mandatory training is defined and

dependent on the risk profile of work

activities. Regular evaluations are

complemented by ‘Safety Gemba Walks’,

where managers visit workplaces to

assess safety performance and strengthen

our safety culture. Appropriate action is

taken to mitigate risks identified and

ensure continuous improvement.

•Incident reporting: To improve OHS

performance, we encourage people

to speak up whenever they encounter

safety risks – and every worker is

empowered to stop working if they

feel unsafe. Together with their manager

and EHS expert, they can identify a

safe way of working so the work can

resume. We record and investigate all

incidents and high-risk unsafe situations

to determine the root cause, and take

actions to prevent recurrence.

•Hazard and risk evaluations: Our OHS

risk evaluations are integrated into our

ERM framework. Our EHS experts review

and monitor incident reports, root cause

analyses and operational changes, as

well as requirements based on OHS

frameworks and local laws, to support

the timely identification of hazards and

risks. These risks are compiled into a

heatmap, which we review annually and

which helps prioritize and guide our

safety initiatives.

•Safety maturity assessment: Every

three years, we perform a global safety

assessment survey to measure the safety

perception of our employees. These

assessments guide our safety culture

improvement roadmaps for teams.

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing attractive workplace for all (continued)

Process for engaging

We encourage our employees and their

representatives to openly communicate and

share ideas and concerns with management

about working conditions and management

practices, without fear of discrimination,

retaliation, intimidation or harassment.

Engaged stakeholders – Employees

We use insights from engagement with

our employees to inform our people strategy

at all stages, including impact assessment,

policy development, target-setting and

actions. Our CEO has operational

responsibility for ensuring this engagement

occurs and that the insights are applied.

We also use our annual employee survey

to assess the effectiveness of our overall

engagement with employees.

In addition to the direct channels available,

we engage in regular dialogue with workers’

representatives, including duly elected and

trade union representatives.

Duly elected workers’ representatives

Works councils have been established in

the Netherlands and in Berlin, Germany. In

Japan, South Korea and Taiwan, employee

representatives have been duly elected in

accordance with Labor Management Council

or Labor Act requirements, and in China we

have retained pre-existing works councils at

our HMI facility.

These councils consist of elected employee

representatives from across the organization.

The number of council members and the

specific election procedures are determined

by the location and size of the organization.

Works councils balance the interests of

employees with those of the business, and

are often required to consent or advise on

specific decisions such as reorganizations,

mergers and changes in employment

conditions (although this may vary in different

locations). To better understand the needs

and concerns of the organization, the

Supervisory Board (SB) regularly meets with

our largest Works Council in the Netherlands

– providing a clear communications channel

for our people. In countries where we do not

have formal employee representation, we

promote open dialogue through our various

employee channels and networks.

Veldhoven, Netherlands

The Works Council meets regularly with the

BoM and senior management, and annually

with the delegation of the SB. At least twice a

year, there is a consultative meeting between

the Works Council and the ‘Bestuurder’ (the

ASML executive responsible for consulting

with the Works Council).

Germany (Berlin), Japan, South Korea and Taiwan

Quarterly meetings are held between

employee representatives and local

management representatives.

Collective labor agreements

The Netherlands (with Metalektro)

The Metalektro Collective Labor Agreement

(CLA) is effective for the industry in which we

operate and applicable to 97% of employees

in the Netherlands within the scope of the CLA.

Belgium, France, Germany, Italy and South Korea

In Belgium, we have a collective bargaining

agreement with Paritair Committee 200.

In France, we participate in the Metallurgie

industry agreement, except for our Cymer

Light Sources employees – who fall under the

scope of the CLA with Commerces de Gros.

In Germany, we have a company CLA

negotiated with IG Metall for our Berlin

location (ASML Berlin GmbH). In Italy, our

employees are covered by the national

collective bargaining agreement (CCNL) for

commerce. In South Korea, we have a CLA

negotiated with the Chemical, Textile and

Food Industrial Union.

Worldwide, 62% (2024: 61%) of our

employees are covered by collective

bargaining agreements. We strive to comply

with the relevant legislation in every country

where we operate.

The working conditions and terms of

employment of employees not directly

covered by collective bargaining agreements

are influenced or determined based on

other such agreements, labor market

developments, and usage and habits in

the specific country.

ASML_Social_How-were-managing_attractive_workplace_Process-for-Engaging_Image_v2.jpg

Process for remediation

We encourage our employees to use direct

reporting lines to remediate issues one-on-

one as much as possible. In cases where this

cannot be achieved, depending on the nature

of the issue employees may report matters

via the following reporting lines, without fear

of retaliation:

•Human resources: Conflict resolution via

internal process or mediation under the

guidance of an independent and neutral

third party (the mediator).

•Ethics liaison or Ethics Office (directly, or

24/7 via our Speak Up Service): Incidents

reported via Speak Up will follow the

process and protocols of the Ethics Office.

•EHS management system: Incidents follow

the process and protocols of the system.

In the event these reporting lines do not

remedy the issue, employees may raise

topics with senior leadership or duly elected

workers' representatives.

Governance – ESG integrated governance –

Responsible business conduct and compliance

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Talent attraction, employee engagement and retention

| Our objective | | --- || We aim to create an exceptional workplace that attracts, engages and retains talent by fostering an environment where people can thrive, grow and contribute to the company’s long-term success. | | --- | | Our scope | | --- |

Our Attractive workplace for all approach

applies to all employees within the ASML

group of companies. In some cases, its

scope extends to non-employees.

Targets and performance

Improve talent attraction by achieving

specific employer brand score rankings

in the Netherlands (top 5), United States

(top 75), China (top 100) and Taiwan

(top 5) by 2025

NL 1

2024: 1

2025 target: Top 5

In the Netherlands, progress on these

rankings has been measured since first

reported in 2013 – at which time we ranked

23rd. In 2025, we ranked number one for

tech students (engineering/IT/natural science)

and third (2024: third) for professionals in

tech, based on Universum rankings.

US 119

2024: 140

2025 target: Top 75

In the US, despite not achieving our goal of

top 75 in 2025, we substantially moved up in

ranking from 140th in 2024 to 119th in 2025.

The US is a large and fragmented market in

which it is difficult to reach everyone.

Targeted campaigns and extensive media

coverage in both the states in which we

operate, as well as the states we recruit from,

have supported this ranking.

China n/a

2024: 109

2025 target: Top 100

| Not achieved | 2025 target: Within 2 pp of (or higher than) the top 25% of companies | | --- | --- || | -3% | -2% | -1% | 0% | +1% | +2% | | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | 2025 | | | | | | |

In 2025, Universum discontinued its syndicated

report for China. We commissioned a custom

survey, which measured ASML’s employer

brand against a group of 15 companies

consisting of peers in the semiconductor

industry and other companies with which

we compete for talent. Among this group,

we ranked fifth. Due to the different

composition of the benchmark, this result

is not comparable with previous years.

Taiwan 3

2024: n/a

2025 target: Top 5

In 2024, Universum discontinued its syndicated

report for Taiwan – therefore, in 2025, we ran

a custom Universum survey of students. We

ranked third, reaching our top-five ambition.

We also obtain rankings in Germany, where

we ranked 43rd, in South Korea where we

ranked eighth and in Japan where we

ranked sixth.

Given challenges in securing reliable employer

branding rankings, we refrain from setting a

next target at this time. We will nevertheless

continue our employer branding initiatives

and monitor progress using internal and

external data sources.

By 2025, be within 2 percentage points of

(or higher than) the benchmark employee

engagement score achieved by the top

25% of companies

158879430241211

In 2025, 88.3% (2024: 88.0%) of our

employees participated in our annual

employee engagement survey, returning

an engagement score (three-year rolling

average) of 78.9% (2024: 78.9%). With this,

we fell short of our 2 percentage point (pp)

target range, measuring 2.3 pp below (2024:

2.1 pp below) the top 25% external global

benchmark of 81.2% (2024: 81.0%), also

representative of a three-year rolling average.

Despite setting a target which fluctuates

yearly relative to external performance, we

determine our baseline on our 2019

performance at 77%.

As we did not achieve our 2025 target, we

continue progressing on our long-term

employee engagement ambitions toward

top performance. The current target will

remain in place for 2026.

We continue to leverage insights gained

from the survey and depend on employees

working together to define actions that

directly address areas requiring improvement.

Our 2025 survey reaffirmed several strengths

perceived by our employees. These strengths

include our culture with deeply rooted values

of challenge, collaborate and care, as well as

the belief in teamwork and ownership. Despite

falling just short of our ambition, we are once

again pleased to learn that we measure above

the global external average benchmark: our

employees are proud to work for ASML,

recommend ASML as a great place to

work and report high intention to stay.

Clear and valuable feedback was also

received regarding important areas of

improvement, in particular in relation to

establishing effective work processes,

reducing unnecessary complexity,

strengthening knowledge sharing across

teams by encouraging ownership and

clarifying roles and responsibilities.

Furthermore, the importance of well-being

and feeling heard and safe to speak up

was reinforced by our colleagues and is

crucial to ensure everyone can achieve their

full potential.

We take this feedback to heart and continue

to work with our colleagues with the aim to

address these crucial topics and enhance

the overall engagement.

We also measure the onboarding experience

through pulse surveys. On average, 90%

(2024: 87%) of new colleagues starting in

2025 indicated they had a positive experience

– 7% (2024: 9%) had a neutral experience

and 3% (2024: 4%) said there is room for

improvement, particularly in training and

more structured access to relevant

information and tools.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Talent attraction, employee engagement and retention (continued)

Have an attrition rate1 of <7% by 2025

	0%	2%	4%	6%	8%
2024
2025
Achieved<br>				2025 target: <7%

3848290858041

Progress on this target has been measured

since first reported at 3.8% in 2020. Our

overall attrition rate in 2025 was 4.1% – well

within our target range and below the industry

average in every country in which we operate.

However, maintaining our attrition also depends

on external factors in the job market.

Having reached our 2025 target, we continue

progressing on efforts to retain our best

talent, the current target will remain in place

for 2026.

Our actions and resources

Creating a strong employer value

proposition

We aim to create a meaningful employer

brand experience from the inside out, by:

•Offering a unique experience for current

and prospective employees through

focused programs around learning and

development, well-being, and I&D.

•Inviting employees – as part of our Digital

Ambassador program – to share why they

choose to join and stay with ASML, and

supporting them in sharing their stories within

their personal networks. Today, over 2,300

(2024: 2,000) employees worldwide are

sharing curated content through their local

social media channels, generating millions of

impressions and meaningful interactions –

and strengthening our presence in earned

media, helping us connect with talent and

drive awareness and high-quality referrals. In

2025, we continued to expand and optimize

the program to further increase its impact.

Raising awareness of career opportunities

We use extensive employer branding and talent

engagement activities to strengthen ASML’s

position as an attractive employer.

We believe our branding attributes that

resonate with these audiences include

well-being, innovation, and learning and

development – which help us deliver the

right message to the right people.

In 2025, we continued to organize global

and regional engagement events for both

students and experienced professionals:

•Strengthening our relationships with

universities and colleges in Europe, the US

and Asia to support the education of future

engineers, scientists and technicians. In

partnership with Eindhoven University of

Technology (TU/e) in the Netherlands. 80

international students from 20 universities

across 11 countries were hosted at the

2025 Eindhoven Semicon summer school.

We also host students at our locations to

showcase our technology and culture, and

to connect them with colleagues.

•Using our new Candidate Relationship

Management system, launched in 2024,

to nurture our relationships with potential

talent – including alumni, event

visitors,former interns and high-potential

candidates who were not selected but remain

a strong match for ASML. Based on their

preferences, we invite them to events, send

newsletters, share open positions and

connect them with recruiters.

•Hosting 1,398 interns across our locations in

Europe, the US and Asia (2024: 1,137), and

annually awarding 80 technology scholarships.

•Hosting 210 ‘work-study’ students (2024:

248) who combine studying for a college

degree with working at ASML – helping us

attract, train and retain vocational talent.

•Organizing three masterclasses at our

headquarters (2024: four) – two for PhD

graduates and one for Masters graduates

– to engage with top talent.

•Expanding our teaching and guest lecture

efforts at colleges and universities

worldwide, including the Semiconductor

101 course at Purdue University in the US

and lithography lectures at Hiroshima

University, to spark interest with students.

•Hosting campus events in Taiwan to

increase brand awareness and build our

future talent pipeline.

•Running internal and external events and

campaigns focused on women with technical

profiles, including leaders and technical

experts – such as the European Women in

Technology conference in the Netherlands.

•Hosting the ASML China Lithography

Technology Competition, aimed at

identifying and supporting potential talent.

•Running an integrated campaign around

a semiconductor trade show in

South Korea, to spark interest with

students and professionals.

Acting on employee feedback

Annually, we perform an analysis into the

results of the employee survey. We work with

teams to identify actions to implement during

the year ahead and track progress with regular

reports to the BoM. Most actions are tailored

to team-specific needs, with others at global

level – such as targeted offerings via

established programs around well-being,

inclusion and I&D, learning and development

– to address employee feedback.

In 2025, based on feedback received on job

enablement, knowledge sharing and effective

processes, global initiatives involved tailoring

our employee meetings, Q&A sessions and

‘Tech Talks’ by our senior leadership – aimed

at providing greater clarity to employees on

our strategic direction – including what we

want to achieve for our customers and other

stakeholders, and how we share knowledge

across the organization.

We also invested in updating and future-

proofing tools we use, such as integrated

systems and AI, to tackle complex or time-

consuming processes and ways of working.

Resources

Resources mainly comprise FTEs within

structured teams:

•We dedicated 146 FTEs to engaging

with potential employees and

recruitment activities.

•We dedicated two FTEs to the global

coordination of the annual employee

survey. This excludes the external costs

(survey and consultants) and hours spent

by teams, managers and HR business

partners on executing the survey, deep

dives and action plans.

Looking ahead

In 2026, we intend to continue efforts to

attract and engage and retain talent needed

to continually innovate and grow sustainably,

with a focus on:

•Deepening our relationships within our

education ecosystem, such as with the

newly established Casimir Institute at

TU Eindhoven.

•Partnering with our ecosystem on the

Dutch government’s ‘Beethoven’ project

– with the aim of increasing available

talent for the semiconductor industry

in the Netherlands.

•Addressing our key themes for improvement,

as raised in our employee engagement

survey, by incorporating feedback into

dedicated programs for I&D, well-being,

and learning and development and into

efficient ways of working.

•Working closely with our social partners

on the changes in our Technology and IT

organizations in accordance with local

laws and upholding commitment to act

responsibly - with care, speed,

transparency and fairness.

Our calculation of the attrition rate target differs from the ‘employee turnover rate’ metric in accordance with the ESRS. Read more in Sustainability statements – Social – Attractive workplace for all – Additional disclosures – Methodology on targets

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Learning and development

| Our objective | | --- || We aim to support and empower our employees on their development journey to reach their career ambitions. We strive to provide access to best-in-class learning that promotes skills and knowledge growth through targeted programs, innovative training and emerging technologies such as AI. | | --- || Our scope | | --- |

Our Attractive workplace for all approach

	0%	20%	40%	60%	80%	100%
2024
2025
Achieved<br>				2025 target: 80%

applies to all employees within the ASML

group of companies. In some cases, its

scope extends to non-employees.

Targets and performance

By 2025, 80% of all employees should

have at least one development item (in

progress) in their development plan

	0%	20%	40%	60%	80%	100%
2024
2025
Achieved<br>				2025 target: 80%

279

This target was based on our 2023 baseline

figure of 80%. In 2025, 82% of all employees

had at least one item in progress, as measured

at the end of the goal-setting phase of the

annual cycle (March 2025). This figure has

grown over the past two years, surpassing

our target and reflecting the efforts to invite

our employees to own their career – which

encourages employees to set, actively work

on and update development items

throughout the year.

Having reached our 2025 target, we continue

our efforts on improving the development

journey of employees, the current target will

remain in place for 2026.

Achieve a learning satisfaction score

of 80% or higher for 2025

1054

n/a

This was a new target set for 2025 with a

2024 baseline figure of 86.5%. In 2025, a

learning satisfaction score of 83.8% was

reached, exceeding our target score. This

reflects our ongoing efforts to create relevant,

engaging learner centric solutions to support

people in their daily work and growth.

Having reached our 2025 target, we continue

progressing on our learning ambitions, the

current target will remain in place for 2026.

Our actions and resources

Improving the learning journey

In 2024, underscoring our commitment to

employee development and organizational

agility, we launched 24 role-based learning

journeys – reducing the time it takes

employees to acquire the knowledge and

competence to be effective in new roles. In

2025, our Manufacturing Academy scaled

their learning journeys from basic competences

to mature levels, reaching more than 100

roles. This included hands-on training for

complex technical skills delivered within

our skill-based training centers (STCs) in

the TWINSCAN and EUV factories. A new

dashboard tracks time-to-competence,

helping teams close skill gaps, reduce cycle

times and safety issues, and increase quality.

In 2025, our Customer Support Academy

also launched a holistic role-based learning

framework tailored for each field role,

delivering modular training that builds

technical knowledge and hands-on capability.

Career and onboarding learning journeys

provide structured growth opportunities,

while non-technical learning journeys

promote holistic development. By equipping

our workforce with the right tools and

resources, we can support their development

in their roles and their careers – aiming to

prepare them for future challenges and

fostering continuous improvement.

Learning to thrive with AI

In 2025, we launched the first wave of our AI

Learning and Adoption program – reaching

over 7,800 employees globally. Teams and

individuals were carefully selected based on

expected impact and relevant use cases.

The program focused on practical, hands-on

learning to accelerate successful adoption

and ensure responsible use of AI tools, with

the aim to reduce the time-to-competence

and encourage our people to adopt AI into

their day-to-day work.

Drawing on feedback from focus groups

comprising employees and leaders, we

identified key concerns, challenges, and

preferred learning styles. These insights

informed the development of a comprehensive,

three-stage AI learning framework: beginning

with foundational knowledge, progressing to

specialized team-based and advanced

prompting skills, and culminating in targeted,

role-specific competencies. Each stage was

supported by both e-learning modules and

virtual instructor-led training sessions, available

to employees based on their individual

development goals. To ensure accessibility,

sessions were scheduled across multiple

time zones, complemented by a dedicated

learning platform and guidance from the AI

Ambassador community.

By the end of 2025, the first two stages were

completed. We believe the fundamentals

program was highly successful – within just

two months, there were 6,527 learning

enrollments, with a 4.3 out of 5 learning

satisfaction score. Most notably, 97%

of participants actively used AI tools after

completing their training – demonstrating

a significant reduction in the time-to-

competence. In addition, the specialized

team-based and advanced-prompting skills

training, attracted over 500 participants and

received a 4.2 out of 5 satisfaction rating.

Empowering employee development

Following a successful pilot of integrated

talent management (ITM) aimed at offering

unique career development experiences, we

continued our efforts by launching two global

initiatives in 2025:

•myCareer: a central page with guidance

and (career) development resources for

employees and managers across

the organization.

•Career Hub: a valuable platform via which

employees can post their skills, interests

and career preferences and can explore

tailored development opportunities,

including personalized learning suggestions,

internal vacancies and gigs.

Job profiles and associated skills are

now accessible in the Career Hub, giving

employees clearer guidance on roles and

responsibilities. Based on their current

profile, they can also explore suggested

career paths within the Career Hub for

inspiration and direction. We held soft-skills

workshops in 2025 under the D&P program

– with most specifically designed to support

employees taking ownership of their

development, and to improve the quality

of career conversations.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	220
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Learning and development (continued)

ASML_Sustainability_Social_Attractive-workplace-for-all_Learning-and-Development_v1.jpg

Unlocking gigs with AI

Initiating and participating in gigs

All employees can initiate (become a gig

host) or participate in a gig, as long as it

aligns with business needs and follows

established guidelines. With manager

approval, individuals can dedicate up to

10% (four hours per week) of their time

for a maximum of six months to a gig.

This new way of learning on the job allows

employees to gain valuable experience

outside of their teams and bring back

fresh perspectives. Gig initiators (hosts)

also benefit by developing leadership,

coaching and project management skills.

Gigs are tailored to address specific

needs within ASML based on current skills

and expertise. They are unique (career)

development opportunities that support

personal growth and promote cross

functional collaboration. Designed to deliver

tangible results, gigs are integrated into

employees’ regular work. They also help

employees grow in areas of interest, even

if those differ from their current skill set.

Employees are matched based on current

skills or skills employees want to develop.

Each match is rated as strong, good or fair

– ensuring gig suggestions are relevant to

employees’ skills and career interests, and

increasing the likelihood of a successful match.

Benefits of gigs

Gigs offer numerous benefits for participants,

hosts and ASML as a whole. Participants

can develop skills, explore careers, engage

and network. Hosts gain access to diverse

talent, foster innovation and develop

leadership skills. ASML benefits from

enhanced agility, collaboration, innovation

Gigs initiative powered by AI

Gigs are short-term skill-development activities designed to meet real business needs while enabling employees to explore, learn, and grow. Gig recommendations in Career Hub are tailored through AI and machine- learning algorithms, considering factors such as job profile, skills, past experiences, career aspirations and organizational requirements.

and employee well-being.

Gigs can be conducted across all kinds of fields

within the organization, each with a detailed

description outlining the specific tasks and

responsibilities, required skills and necessary

competencies, and the learning outcomes

– providing a clear picture of the knowledge

and experience employees can expect to gain.

Examples include hackathons, ESG initiatives,

AI feasibility studies and event organization.

By participating in gigs, employees actively

drive their development – exploring new

areas of interest and gaining valuable

experience that can be applied to their

current job or future career aspirations.

“Gigs are a powerful tool

for career development,

offering employees the

chance to grow both

personally and professionally

while contributing to the

success of the organization.

They attest to ASML’s

commitment to growing

its people and advancing

its people strategy.”

Renee Malone

Talent Sourcing Consultant

Renee Malone was the first participant in

a gig. This allowed her to showcase her

skills and learn more about inclusion

programs on a broader scale. The gig

provided global exposure and insights,

which Renee found to be eye-opening and

valuable. She highlighted the importance

of teaming up with experienced colleagues,

learning through doing and the practical

value of project documentation. It helped

her refine her career plans and consider

new opportunities.

Resources

Resources mainly comprise FTEs within

structured teams:

•We dedicated four FTEs to coordinating and

tracking our Develop & Perform program.

•We dedicated 45 FTEs to coordinating and

tracking our Learning program.

Looking ahead

In 2026 we intend to continue scaling our

successful learning and development

initiatives, focusing on the following:

•Design a modular and user-focused

learning architecture that makes it easier

to share, reuse, and access learning

across platforms and processes.

•Deploying a skills management framework

to connect common skills and capabilities

across different functions – equipping

ASML for future growth and helping

employees understand how their skills

enable them in their (aspirational) roles

throughout the organization.

•Rolling out the third and final stage of our

AI learning and adoption program. This

will center on enhancing role-specific

competencies – exploring advanced use

cases tailored to distinct roles, along

with learning on advanced prompting

techniques. Our objective is to further

integrate AI responsibly into our operations,

ensuring employees can effectively leverage

AI tools in their day-to-day work.

•Promoting the use of newly introduced

learning journeys and platforms like

myCareer and the Career Hub – including

by organizing a booster event and an

internal career festival – to help employees

engage in meaningful growth conversations

with their managers and shape their

careers at ASML.

•Integration of ASML Berlin GmbH

employees in job grades ten and above

into our Develop & Perform program, with

the aim to integrate remaining employee

groups in the following year.

•Organizing workshops on career

development conversations for both

managers and employees to support

qualitative (career) development dialogues.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	221
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Inclusion and Diversity

| Our objective | | --- || We aim to foster inclusion, diversity and sense of belonging in a safe environment for all ASML workers, where everyone is valued, respected and can fully contribute. | | --- || | 0% | 10% | 20% | 30% | 40% | | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | 2025 | | | | | | | Achieved | | | | 2025 target: 24% | || Our scope | | --- |

Our Attractive workplace for all approach

applies to all employees within the ASML

group of companies. In some cases, its

scope extends to non-employees.

Targets and performance

Achieve 24% inflow of women

(all job grades) by 2025

157779918720351

Our baseline figure, reported in 2022, is 24%.

In 2025 there was a 29% inflow of women,

reaching our 2025 target.

Having reached our 2025 target, we continue

progressing on our long-term I&D journey to

promote equal opportunities. To support this,

we have set a more ambitious target, to

achieve 26% inflow of women (all job grades)

in 20261.

ASML presents in this Annual Report its diversity and inclusion policies and targets for, and progress on achieving, gender diversity as required by Dutch law and its Diversity and Inclusion Policy adopted by the BoM pursuant to requirements of Dutch law. The US executive order 14173 (EO) titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, took effect on April 21, 2025. Our diversity targets and key performance indicators (KPIs) do not apply to ASML’s US operations or employees. In addition, certain related programs and initiatives do not apply to ASML’s US employees to the extent they would conflict with the EO or other applicable law, regulation or orders. The comparative figures (including baseline figures) reported herein capture all ASML’s employees worldwide.

Achieve 24% inflow (external hires only) of

women to middle management and above

(job grades 9+) by 2025

| Achieved | 2025 target: 24% | | --- | --- || | 0% | 20% | 40% | 60% | 80% | 100% | | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | 2025 | | | | | | |

157779918720557

Our baseline figure, reported in 2023, is 25%.

In 2025, there was a 28% inflow of women to

middle management roles and above,

reaching our 2025 target.

Having reached our 2025 target, we continue

progressing on our long-term I&D journey to

promote equal development opportunities.

To support this, we have set a more ambitious

target, 26% inflow of women to middle

management and above (job grades 9+)

in 20261.

We acknowledge that the global science,

technology, engineering, and math (STEM)

talent pool is thinly populated with women.

Globally, women comprise between

20%-29% of the semiconductor workforce,

with representation in technical roles ranging

from 10% to 19%. We continue to take a

multifaceted approach, setting challenging

yet feasible and steady inflow targets that are

within these ranges to ultimately facilitate

reaching our women representation goals.

We are highly motivated to create equal

opportunities for all qualified candidates,

particularly in engineering and science, to

ensure we attract and retain the talent

needed to deliver upon our strategy and

growth ambitions. This requires a variety

of approaches and the highly specialized

nature of our work means it will be a

long-term process.

Achieve 14% representation of women in

senior leadership roles (job grades 13+)

by 2026

	0%	20%	40%	60%	80%	100%
2024
2025								On track	2026 target: 14%
---	---			-4%	-3%	-2%	-1%	0%	1%	2%
---	---	---	---	---	---	---	---
2024
2025									Achieved	2025 target: Within 3 pp of (or higher than)<br><br>the top 25% of companies
---	---

157779918722466

Our baseline figure, reported in 2022, is 10%.

In 2025, we achieved 16% representation of

women in senior leadership roles, exceeding

our target for 2026. This was achieved

through our commitment to women’s

development at every level of our leadership

pipeline, starting with middle management

and navigating wider challenges relating to

the representation of women within talent

pools themselves.

By 2025, be within 3 percentage points of

(or higher than) the benchmark inclusion

score achieved by the top

25% of companies

n/a

161628209420038

In 2025, we achieved our target, with an

inclusion score (three-year rolling average) of

80.2%. With this, we measure 0.6 pp below

(2024: on par with) the top 25% external

global benchmark of 80.8% (2024: 82.4%),

and are therefore within our target range.

Despite setting a target which fluctuates

yearly relative to external performance, we

determine our baseline on our 2024

performance at 82.4%.

Having reached our 2025 target, we continue

our efforts on improving I&D alignment with

top-performing companies. To support this,

we have set a more ambitious target, to be

within 2 percentage points of (or higher than)

top-performing 25% of companies by 2027.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	222
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Inclusion and Diversity (continued)

Inclusive Leadership Program

ASML_Sustainability_Social_Attractive-workplace-for-all_Inclusion-and-Diversity_v5.jpg

The Inclusive Leadership Program

(ILP) marks a significant shift in

our I&D journey, transitioning

from awareness to leadership

accountability.

The initiative aims to cultivate strong

capabilities in inclusion and address

skepticism about I&D as a business

priority within our science-based culture

– which traditionally values objectivity

over human-centricity.

The ILP is a two-day immersive

workshop embedding I&D into leadership

accountability and fostering an inclusive

culture through education and practical

experience. It targets three leadership levels:

first-line leaders; leaders of leaders; and

executives. The program is based on Theory

U, a framework designed to develop inclusive

skills by focusing on four pillars: listening to

the system; challenging assumptions;

crystallizing breakthrough initiatives; and

acting purposefully. Leaders are educated on

bias, microaggressions, headwinds and

tailwinds, allyship, mentoring, psychological

safety and sponsorship. The workshop

includes hands-on simulations, virtual reality

experiences and tailored exercises to help

leaders navigate inclusion challenges and

develop essential skills.

Leaders in action

In 2025, 1,142 of our leaders completed the

program. Participants reported overwhelmingly

positive feedback and high satisfaction rates in

personal growth and recognition of potential

biases or assumptions, and committed to

applying inclusive leadership principles in their

work environments. Markus Matthes, Country

Manager Germany, and Nancy Mac Gillavry,

Head of Finance, took part in the program

and shared their experiences.

The ILP significantly influenced Markus’s

leadership approach, shifting his focus from

diversity to inclusion. He emphasized that

inclusion is a key driver for successfully

building a high performing team and he

is committed to leading with inclusivity,

applying the skills learned from the program.

Markus found virtual reality to be one of

the most impactful features of the ILP.

“Inclusion requires focus and<br><br>consistent, intentional effort.<br><br>I see opportunities for<br><br>improvement within my<br><br>own organization.”<br><br>Nancy Mac Gillavry<br><br>Head of Finance

Additionally, following the ILP, Markus

decided to coach a colleague on a journey

toward taking a leadership role and he also

decided to take on volunteering work,

enabling him to apply his learnings from the

ILP also beyond leading his team at ASML.

Nancy’s journey through the ILP proved

transformative, deepening her commitment

to fostering inclusion and diversity within

her team.

She became acutely aware that cultivating

a high-performing environment demands

both, not simply the presence of diverse

voices. The program’s hands-on exercises,

especially those revealing the impact of

headwinds and tailwinds, resonated with her,

sharpening her empathy and resolve. Nancy

recognized the importance of maintaining

vigilance in her inclusive leadership practice,

ultimately enlisting her team’s support to

embed these principles into their shared

mindset and daily actions.

Conclusion

The core to the ILP’s success was the

active sponsorship by the BoM and

executive leaders, amplifying its influence

and effectiveness. Integrating the program

into overall leadership development

reinforced the message that inclusive

leadership is essential for all leaders.

Implementing regional customization

“Gaining insight into how others experience their environment<br><br>can be truly eye-opening. Taking the time to see things from<br><br>different perspectives highlights the often unseen advantages<br><br>we may have, and reminds us of the value of empathy.”<br><br>Markus Matthes<br><br>Country Manager Germany

and the ‘Head-Heart-Hands’ design

approach, along with balancing knowledge,

emotional resonance and actionable skills,

was particularly effective in engaging

science-driven leaders and sustaining

cultural change and business success.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Inclusion and Diversity (continued)

Our actions and resources

Building inclusive leaders and teams

In 2025, the second year of our Inclusion and

Diversity program, we focused on achieving

scale for leader and team inclusion through

the following activities:

•Embedding an inclusive mindset and

behaviors: We extended the opportunity

for our employees and leaders to

voluntarily participate in our ‘Ignite

Inclusion’ and ‘Inclusive Leadership’

training programs. 2,345 of our leaders

completed ‘Inclusive leadership’ and

24,923 of our employees completed ‘Ignite

inclusion’ so far by the end of 2025.

•Strengthening executive sponsorship in

the EU and Asia: Our reverse-mentoring

program which was started in the EU,

connects employees of varying backgrounds

and perspectives with senior executives

and leaders, creating opportunities for the

exchange of unique insights, lived

experiences and viewpoints. In 2025,

we began developing the program for

employees in Asia. By the end of 2025,

40 mentees and mentors were matched

and over 75 mentor sessions were held,

with a successful mentee satisfaction

score of 3.74 of 4.

•Team-led I&D roadmaps: Introduced in

2025 to translate global ambitions into

locally relevant action plans. Shaped by

team-specific contexts and guided by a

shared framework, the roadmaps enabled

tailored interventions – such as targeted

inclusion courses and dashboard-based

progress tracking – while reinforcing

ASML’s global commitment to building

an inclusive workplace.

•Women in leadership (excluding US):

We continued to support leadership

development for female talent, as

applicable. We executed three leadership

programs with action-based learning at

various leadership levels for 87 female

leaders – more than 36% higher than

the previous year.

Employee networks

Employee networks are open to all employees

and play a key role in the I&D ecosystem,

serving as a platform for employees sharing

similar experiences to connect and support

each other. To achieve this, employee

networks organize a range of local events

and initiatives throughout the year.

Engaged stakeholders – Employees

Understanding diverse needs

In collaboration with our Corporate Real

Estate (CRE) and other teams, we aim to

use the data-driven insights to help shape

continuous improvement initiatives. We strive

to standardize our global building practices

for creating inclusive workplaces, removing

barriers to accessibility and fostering a sense

of belonging for the broadest community

of users and abilities. We aim to develop a

new ASML campus on the Brainport Industry

Campus in Eindhoven that reflects ASML’s

identity: connected, inclusive, and open,

while providing flexible spaces and services

that adapt to the evolving needs of our

business and employees.

Resources

We dedicated nine FTEs to coordinating

and tracking our I&D program. This does

not include partially allocated FTE resources

required to execute I&D activities.

Looking ahead

In 2026, we intend to continue scaling our

impactful I&D initiatives, focusing on

the following:

•Continuing our I&D program and scaling

up initiatives to further embed I&D into our

work culture.

•Building our global culture initiative, with

the intention to shape a core culture and

behavior framework to support the next

phase of our growth.

•Working with leadership on integrating our

I&D roadmaps.

•Gathering data and enhancing dashboards

to inform our actions.

•Working to develop an Allyship guide for

all employees to facilitate advice, skills

and tools for ASML colleagues to support

one another.

•Continuing to monitor evolving legal

frameworks and best-practices to ensure

our I&D approach is aligned with global

expectations and is legally compliant.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	224
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Occupational health and safety

| Our objective | | --- || We aim to provide injury-free and healthy working conditions for everyone on our premises by eliminating hazards, reducing safety risks and preventing occupational ill health. | | --- || Our scope | | --- |

Our Attractive workplace for all approach

applies to the ASML group of companies.

Our EHS sub-topic covers everyone whose

workplace is controlled by ASML, including

all our employees and other on-site workers

not employed by us.

Targets and performance

Achieve a recordable incident rate of 0.96

or below by 20251

	0
2024
2025		Not achieved<br>	2025 target: 0.96
---	---

111050674505644

In 2025, our recordable incident rate was

1.10. Despite not meeting our target of 0.961,

which represents world-class performance,

we did see a decline in our incident rate of

0.04 compared to the 2024 figure of 1.141.

We continue to take actions to improve

safety in our technology and systems, and

in our culture. In 2025, we did not encounter

any work-related fatalities on-site.

Having not reached our 2025 target, we

intend to continue progressing our OHS

efforts, with the current target remaining

in place until 2030.

Our actions and resources

We mitigate our health and safety impacts and

risks through our EHS management system,

which is consistently enhanced via yearly

roadmaps. In 2025, we continued the

deployment of our EHS improvement roadmap.

Enhancing safety standards

With the aim to provide injury-free and healthy

working conditions for everyone, we clarified

our EHS principles:

•We minimize risks through design

processes, procedures and the

right protection.

•We stay informed on the rules,

complete the required trainings and

behave accordingly.

•We speak up whenever we see

unsafe situations.

•We stop work if we feel unsafe and resume

work once a safe way of working is identified.

•We report unsafe situations and incidents,

investigate them and take actions to

prevent them from recurring.

To foster a culture of safety – and to improve

it – we will encourage safe behavior by

promoting these principles with a series of

awareness campaigns, and through inclusion

in the EHS fundamentals training.

We also updated the standards and

protocols for industrial hygiene, personal

protective equipment, training and working

at heights. We have aligned our working at

height standard to global requirements, to

provide further clarification and global

standardization.

Enabling continuous learning

Training plays an important role in

fostering EHS competence, awareness

and performance. The EHS College enables

continuous individual and collective learning

through on-the-job and e-learning across

different disciplines.

In 2025, the newly developed ‘fundamentals’

training was released to all employees to

keep our people updated on the most recent

practices and expectations. In addition we

continued the EHS cleanroom fundamentals,

helping employees stay safe in

cleanroom environments.

Managing health and safety risks

We perform risk assessments on hazardous

substances and ergonomic and physical

hazards. If risks are above the acceptable

limit, we assess what actions need to be

taken to reduce and manage them.

In 2025 we continued our industrial hygiene

program – which includes exposure to noise,

hazardous substances and physical workload.

Advancing safety maturity

Every three years, we assess our safety

maturity – and, in 2025, conducted our re-

assessment. Employees in scope completed

the survey and in certain locations additional

deep-dive analyses were undertaken.

We observed a broad range of safety

maturity levels across the company and

within regions. Tailored roadmaps have been

developed to help each location advance

toward a more independent safety culture.

Based on an EHS deep-dive incident

analysis, we identified that five safety rules

have the greatest potential to prevent serious

injuries and fatalities in our operations. These

life-saving rules have been included in our

2025 mandatory refresher training. It is vital

that everyone working at ASML knows and

understands them:

1.Verify isolation and lockout before

beginning work – hazards are isolated,

contained and tagged-out before work

can continue.

2.Get authorization before entering a

confined space – permit restricting access

to confined spaces to ensure the area is

safe and safety protocols are in place

before entering.

3.Take precautions while moving heavy loads

– adherence to load and heavy equipment

protocols and permits.

4.Protect yourself while working at heights –

adherence to working-at-height protocols.

5.Drive safely – prohibiting multi-person calls

while driving to reduce possible distraction

and increasing ability to quickly respond to

changing traffic conditions.

Resources

We dedicated 294 FTEs to our global

EHS team.

Looking ahead

In 2026, to reduce our recordable incident

rate, we will continue implementing our EHS

improvement roadmaps – including a focus

on driving our updated safety principles

through awareness campaigns and trainings.

1.We have changed the preparation of the Recordable incident rate and have updated our comparative figures accordingly. Read more in Sustainability statements – Social – Attractive workplace for all: additional disclosures – Methodology on targets

ASML_AR_Sustain_Sociall_Attractive-workplace_Labor-Conditions_v1.jpg

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	225
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Labor conditions

| Our objective | | --- || We aim to provide fair labor conditions and social protection for all workers, regardless of their location and contract types. | | --- || Our scope | | --- |

Our Attractive workplace for all approach

applies to all employees within the ASML

group of companies. In some cases, its

scope extends to non-employees.

Targets and performance

By 2025, 100% of employees earn above

the adequate wage benchmark

	0%
2024
2025		Achieved	2025 Target: 100%
---	---

155031139554626

n/a

This was a new target set for 2025 with a

2024 baseline figure of 100%. In 2025, all

of our employees earned above the adequate

wage benchmark, reaching our target. Our

adequate wage benchmark represents the

higher of living wage and minimum wage

levels in each location.

Having reached our 2025 target, we

continue to remain committed to paying

our employees a fair wage aligned to best

practices for living wages, the current

target will remain in place for 2026.

Our actions and resources

In addition to our ERM framework that

includes compliance risks relative to with

local labor laws, we have robust processes

for engaging with our employees, workers

representatives, works councils and unions

to set fair terms and conditions of

employment for our employees.

Attractive workplace for all – How we are managing

attractive workplace for all – Process for engaging

We have also incorporated a human rights

due diligence process in support of the

principles laid down in the United Nations

Guiding Principles on Business and

Human Rights.

disclosures – Environmental and human rights

due diligence

Fair wage assessments

Further to annual competitive wage and

adequate wage assessments, we are

preparing to comply with the reporting

and other pay transparency requirements

in line with the EU Pay Transparency Directive

and relevant local legislations, including

engaging with our works councils on this

topic. Furthermore, we have conducted pay

equity assessments across all our employees

globally, including the US and Asian countries

to ensure we are paying men and women

equally for equal work – irrespective of the

presence of local legislation on the matter.

Resources

We dedicated 34 FTEs to our Rewards team.

Looking ahead

In 2026, we intend to continue with our

efforts to engage with our works councils

and unions on important topics, and to be

compliant with local labor laws – with particular

focus on the changes in our Technology and

IT organizations and preparations to comply

with reporting and other pay transparency

requirements, including the EU Pay

Transparency Directive, coming into effect.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Well-being

| Our objective | | --- || We aim to integrate well-being into daily work practices, supporting employees in maintaining a healthy, balanced, and productive life. | | --- |

Our scope

Our Attractive workplace for all approach

applies to all employees within the ASML

group of companies. In some cases, its

scope extends to non-employees.

Targets and performance

By 2025, be within 2 percentage points

of (or higher than) the benchmark well-

being score achieved by the top 25%

of companies

	-3%
2024
2025		Achieved	2025 target: Within 2 pp<br><br>of (or higher than) the top<br><br>25% of companies
---	---

111050674462882

n/a

In 2025, we achieved our target with our

three-year rolling average well-being score of

79.9% – we measured 0.7 pp above the top

25% external global benchmark of 79.2%,

also representative of a three-year rolling

average. This was a new target set for 2025.

Despite setting a target which fluctuates

yearly relative to external performance, we

determine our baseline on our 2024

performance at 81.2%.

Having reached our 2025 target, we continue

our efforts on improving employee well-

being. To support this our current target

linked to top performance, will remain in

place for 2026.

Our actions and resources

The primary challenge we face is

encouraging employees to consistently

prioritize well-being in their daily work,

particularly during periods of high intensity.

In 2025, we focused on the key themes

highlighted in our 2024 employee survey, on

stress, energy and work-life balance. We

enhanced our well-being initiatives to focus

on stress resilience and energy management

by prompting employees to integrate regular

recharging habits into their routines to

support work-life balance and sustain

high performance:

•‘Mindful January’: Three weeks of

mindfulness practice to help build the

habit of caring for one’s mental health.

•Well-being educational events: A series

of lectures, workshops and activities

throughout the year, centered on feeling

energized at work.

•Global Well-Being Month: The month of

June is aimed at raising awareness of and

promoting well-being, including a calendar

of well-being behaviors for the month.

•World Mental Health Day: A full-day

event with 12 hours of online talks by

thought leaders, attended live by 1,500

(2024: 1,336) employees, with recordings

made available afterwards.

•Well-being support for managers: New

masterclasses and guidelines integrated

into leadership development programs to

promote role-model behavior and support

team well-being.

•Well-being ambassadors: We have

over 470 (2024: 388) employees promoting

well-being across our organization as well-

being ambassadors. In 2025, we have

professionalized the network, by introducing

a standardized role framework, that

clearly defines one core role for all

ambassadors – and three optional roles

for deeper involvement. Combined with

regular community-building, a centralized

resource hub, and structured onboarding,

these steps have made the network more

effective and cohesive.

•Well-being networks: Established

networks, supporting employee groups

with specific needs such as menopause,

disabilities and neurodiversity.

•Well-being scorecard: We developed

a scorecard comprising internal and

external data points to analyze trends

and risks, and to track effectiveness of

well-being interventions.

•Well-being interventions: Based on

insights gathered from the well-being

scorecard and deep-dive analysis of the

employee engagement survey results, we

identified groups of employees whose well-

being needs improvement. We actively

support these teams to shape well-being

journeys tailored to their specific needs and

circumstances – documenting this in action

plans and monitoring through follow-up

sessions in close collaboration with

employee engagement managers and HR.

Having listened to our employees and placing

focus on areas that contribute to improved

employee well-being over 2025, our

expectation is that our employee awareness

of these efforts will manifest in improved

scores on well-being questions in the

employee engagement survey, increased use

of well-being resources, greater participation

in well-being events and reduced attrition

and illness-related absenteeism.

Additional well-being activities:

•Gift matching and volunteering to support

causes close to employees’ hearts.

Partner in our communities – How we are managing

valued partner in our communities

•Employee networks serving as a platform

open to all employees for sharing similar

experiences to connect and support

one another.

Engaged stakeholders – Employees

•Sponsoring employee sports clubs,

coaching and mentoring to promote a

balanced and healthy lifestyle.

Resources

We dedicated four FTEs to coordinating and

tracking our well-being program. This does

not include partially allocated FTE resources

required to execute well-being activities.

Looking ahead

In 2026, we continue to improve our well-

being program, with particular focus on the

implications of the announced changes to

our Technology and IT organizations.

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Well-being (continued)

ASML_Sustainability_Social_Attractive-workplace-for-all_Well-being_v2.jpg

Global Well-Being Month

In June 2025, we hosted our

annual Global Well-Being Month,

themed "Your energy matters:

Keeping our personal

batteries charged”.

This initiative aimed to help employees

manage their energy and well-being through

various talks and interactive sessions

across ASML regions. It was a response

to our annual survey – in which employees

expressed a desire for more energy at work

– aligning with our company’s goals of

fostering a supportive, productive

environment and emphasizing care and

sustainable well-being practices. The

project’s goal was to spark communication

and awareness around well-being and

spread knowledge about current offerings,

resources and support. By participating,

employees learned ways to feel more

energized, focused, creative and connected.

Programs and participants

Global Well-Being Month saw 9,391

enrollments engaging in 291 programs and

events, both online and on-site. Among the

attendees were Brendan Cody (Netherlands,

Project Management), Martina Fang (China,

HR&O) and TJ Schumacher (US, Operations).

For Brendan, the initiative emphasized the

importance of self-care, reminding everyone

to look after their mental health and to

recharge. Participating in the event helped

him gain knowledge about energy

“I adopted new habits like rejoining

the gym, listening to music and

increasing social contacts, all of

which have boosted my energy.

By making these micro-changes,

I’m happier and more energetic

at work and at home. As a result,

I’m more resilient during difficult

or stressful times.”

Brendan Cody

Project Management Officer

management from experts, which is crucial in

his high-pressure work environment. Brendan

explains: “I adopted new habits like rejoining

the gym, listening to music and increasing

social contacts, all of which have boosted my

energy. By making these micro-changes, I’m

happier and more energetic at work and at

home. As a result, I’m more resilient during

difficult or stressful times.”

According to Martina, the initiative helped

her realize that investing in her well-being

is never too late. It was inspiring to connect

with those who share the same passion for

energy management. She has incorporated

regular exercise like Pilates and at least

seven hours of sleep into her daily routine.

Martina explains: “These new habits help

me recharge, enhancing my individual

energy level and overall productivity.

The experience has influenced my focus,

creativity and collaboration at work, and

I’m committed to spreading my well-being

knowledge and organizing activities to

strengthen connections with colleagues through

shared healthy lifestyle practices. For the China

team, we even organized a 15-day check in to

reflect, assess progress and share additional

well-being tips through short videos.”

After taking part in the program, TJ explains,

“Well-being encompasses both physical and

mental health, and it is essential to find ways

to connect with others who share the same

passion. I realized the importance of mind-

body connections. Taking even a few

minutes for well-being can have a significant

impact. For example, frequent micro-breaks

to step away from your desk and walk helped

recharge my battery and improved my focus

and creativity and overall performance.”

Global Well-Being Month reflected our

Care value, fundamental to building an

exceptional workplace. By focusing on

energy management and fostering a

supportive environment, ASML empowered

employees and leaders at all levels to

promote and support well-being – creating

a sustainable, productive workforce.

The initiative addressed the immediate

needs of employees and laid the foundation

for long-term well-being practices that

benefit the entire organization.

“These new habits help

me recharge, enhancing my

individual energy level and overall

productivity. The experience has

influenced my focus, creativity

and collaboration at work, and I’m

committed to spreading my well-

being knowledge and organizing

activities to strengthen connections

with colleagues through shared

healthy lifestyle practices.”

Martina Fang

HR Business Partner

“Well-being encompasses both physical and mental health, and it is

essential to find ways to connect with others who share the same passion.

I realized the importance of mind-body connections. Taking even a few

minutes for well-being can have a significant impact. For example, frequent

micro-breaks to step away from your desk and walk helped recharge my

battery and improved my focus and creativity and overall performance.”

TJ Schumacher

US Operations

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Metrics table

Characteristics of our employees

Topic	Description	2024	2025
Total number of employees –<br><br>headcount by gender<br><br>(as of December 31)	Male	34,454	34,844
	Female	8,899	9,270
	Other	38	57
	Not reported	4	4
	Total number of employees	43,395	44,175		Topic	Description	2024	2025
---	---	---	---
Number of employees by significant<br><br>employment country or jurisdiction<br><br>(representing >10% total employees)<br><br>(headcount as of December 31)	The Netherlands	23,194	23,707
	Taiwan	4,572	4,548
	United States	8,310	8,242		Topic	Description	Female	Male	Other	Not<br><br>disclosed	Total 2024
---	---	---	---	---	---	---
Total number of permanent and<br><br>temporary employees by gender<br><br>(headcount as of December 31)	Permanent employees	8,212	32,216	32	4	40,464
	Temporary employees	687	2,238	6	0	2,931
	Total employees	8,899	34,454	38	4	43,395		Topic	Description	Female	Male	Other	Not<br><br>disclosed	Total 2025
---	---	---	---	---	---	---
Total number of permanent and<br><br>temporary employees by gender<br><br>(headcount as of December 31)	Permanent employees	8,672	32,960	50	4	41,686
	Temporary employees	598	1,884	7	0	2,489
	Total employees	9,270	34,844	57	4	44,175		Topic	Description	2024	2025
---	---	---	---
Reconciliation of the total number of<br><br>employees per ESRS to number of<br><br>employees reported in the<br><br>Consolidated financial statements<br><br>(as of December 31)	Total number of payroll and temporary employees reported in the Consolidated financial statements (Note 18) (in FTE)	44,027	44,209
	Less: Temporary employees reported in the Consolidated financial statements (Note 18) (non-employees as defined by ESRS) (in FTE)	1,241	689
	Total number of payroll employees reported in the Consolidated financial statements (Note 18) (in FTE)	42,786	43,520
	Total number of payroll employees reported in the Consolidated financial statements – converted to headcount unit of measure (in headcount)	43,395	44,175
	Number of employees as defined by ESRS (in headcount)	43,395	44,175		Topic	Description	2024	2025
---	---	---	---
Employee turnover (For the period<br><br>January 1 to December 31)1	Employee turnover (in headcount)	1,652	1,847
	Employee turnover rate	3.9%	4.2%

1.We have redefined our calculation of ‘employee turnover’ and revised our comparative figures accordingly. Read more in Sustainability statements–Social–Attractive workplace for all: Additional disclosures – Methodology on metrics

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table (continued)

Collective bargaining coverage and social dialogue

Topic	Description	2024	2025
Percentage of total employees<br><br>covered by collective bargaining<br><br>agreements (as of December 31)	Employees covered by collective bargaining agreements	61%	62%		Topic			2024	2025
---	---	---	---	---	---	---	---
The percentage of its total employees<br><br>within significant countries within the<br><br>EEA or significant regions outside the<br><br>EEA, covered by collective bargaining<br><br>agreements and/or workers,<br><br>representatives<br><br>(as of December 31, 2024 and 2025)		Collective bargaining coverage		Social dialogue	Collective bargaining coverage		Social dialogue
		Employees – EEA<br><br>(for countries with<br><br>>50 empl.<br><br>representing >10%<br><br>total empl.)	Employees – non-<br><br>EEA (for regions<br><br>with >50 empl.<br><br>representing >10%<br><br>total empl.)	Workplace<br><br>representation (EEA<br><br>only) (for countries<br><br>with >50 empl.<br><br>representing >10%<br><br>total empl.)1	Employees – EEA<br><br>(for countries with<br><br>>50 empl.<br><br>representing >10%<br><br>total empl.)	Employees – non-<br><br>EEA (for regions<br><br>with >50 empl.<br><br>representing >10%<br><br>total empl.)1	Workplace<br><br>representation (EEA<br><br>only) (for countries<br><br>with >50 empl.<br><br>representing >10%<br><br>total empl.)1
	Coverage rate
	0–19%		North America			North America
	20–39%		Asia			Asia
	40–59%
	60–79%
	80–100%	The Netherlands		The Netherlands	The Netherlands		The Netherlands

1.ASML has no existing agreements with a European works council (EWC), a Societas Europaea (SE) works council or a Societas Cooperativa Europaea (SCE) works council.

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Metrics table (continued)

Diversity metrics

Topic	Description	2024		2025
Gender distribution at top<br><br>management level (in percentage<br><br>and headcount as of December 31)	Male	88%	318	85%	340
	Female	12%	44	15%	59
	Other	0%	1	0%	1
	Not reported	0%	0	0%	0
	Total employees at top management level	100%	363	100%	400	Topic	Description	2024	2025
---	---	---	---
Age distribution of employees (in<br><br>headcount as of December 31)	under 30 years old	8,130	6,998
	30–50 years old	28,072	29,626
	over 50 years old	7,193	7,551
	Total employees	43,395	44,175

Adequate wages

All employees earn above our adequate wage benchmark (higher of living wage and minimum wage).

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Metrics table (continued)

Training and skills development metrics

Topic	Description	2024	2025
Percentage of employees that<br><br>completed an annual performance<br><br>and career development review<br><br>against the total number of<br><br>employees by gender	Male	94%	95%
	Female	93%	94%
	Other	76%	98%
	Not reported	100%	100%
	Total	94%	95%	Topic	Description	2024	2025
---	---	---	---
Percentage of employees that<br><br>completed an annual performance and<br><br>career development review against the<br><br>total number of employees eligible for<br><br>a review by gender	Male	96%	96%
	Female	96%	96%
	Other	97%	98%
	Not reported	100%	100%
	Total	96%	96%	Topic	Description	2024	2025
---	---	---	---
Average number of training hours<br><br>per employee	Average number of training hours per employee headcount	41	40	Topic	Description	2024	2025
---	---	---	---
Average number of training hours<br><br>per employee headcount by gender	Male	42	41
	Female	35	35
	Other	9	4
	Not reported	60	87

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Metrics table (continued)

Health and safety metrics

Topic	Description	2024	2025
Percentage of employees covered<br><br>by our health and safety<br><br>management system	Employees covered by our health and safety management system	100%	100%	Topic	Description	2024	2025
---	---	---	---
Number of work-related fatalities as<br><br>a result of injuries	Employee fatalities as a result of work-related injuries	0	0
	Non-employee fatalities as a result of work-related injuries	0	0
	Other worker fatalities on-site as a result of work-related injuries	0	0	Topic	Description	2024	2025
---	---	---	---
Total number and rate of employee<br><br>recordable work-related accidents	Number of employee recordable work-related injuries	77	76
	Rate of employee recordable work-related injuries	1.11	1.05

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Metrics table (continued)

Remuneration metrics (pay gap and total remuneration)

Topic	Description	2024	2025
Gender pay gap	Gender pay gap percentage	10.2%	9.3%

We report our gender pay gap in accordance with ESRS. This metric is determined as the difference of average gross hourly pay levels between female and male employees, expressed as a percentage of the average gross hourly pay level

of male employees. The gender pay gap calculation as described in the additional disclosures for S1-16 Remuneration metrics refers to the ‘unadjusted’ pay gap. This means that while we provided raw statistics around this topic, it does

not account for objective factors for pay differences such as job level, performance, location, job family or tenure. Consequently, we cannot attribute the pay gap with pay equity issues per se.

Our average hourly pay gap for 2025 stands at 9.3% which is 0.9% lower than that of 2024 (10.2%). We believe this result was driven by an increase in the concentration of women in higher-earning roles, specifically in stronger economic

locations, combined with a favorable movement in the average exchange rates observed for some of these locations. The combined effect resulted in a 6.6% increase in the average gross hourly pay of women versus the 5.5% for men,

compared to 2024.

The main driver of the reported gender pay gap remains the underrepresentation of female employees in higher paying roles (generally more senior positions). There is a higher proportion of men across all levels of the organization (79%

(2024: 79% men, 21% (2024: 21%) women) with the highest proportion in senior management (84% (2024: 88%) men, 16% (2024:12%) women). Roles within senior management typically command higher market salaries and opportunities

for larger financial incentives. In contrast, there is a high proportion of women in lower employee bands.

Companies such as ASML, that operate within the technology industry, have traditionally faced challenges attracting women due to their underrepresentation in the STEM talent pool itself. We continue to invest in the promotion of STEM

subjects in primary and secondary school levels and will continue to do so to help further diversify the talent pool. Read more in Sustainability statements–Social– Valued partner in our communities – Investing in STEM education. We have also set

targets to increase the representation of female employees overall and in leadership positions specifically. Read more in Sustainability statements–Social– Attractive workplace for all – Inclusion and diversity.

Additionally, we intend to further evaluate and assess pay and to consider objective factors that can impact an employee’s pay. We aim to close unjustified pay differences between men and women, if any are identified, adhering to local

legislation at a minimum. We are preparing for compliance with the EU Pay Transparency Directive and have taken steps intended to support our readiness for this.

Topic	Description	2024	2025
Annual total remuneration ratio	Annual total remuneration ratio	43	53

This ratio is reported on our global operations in accordance with the ESRS and therefore subject to currency volatility and purchasing-power differences between countries. The increase in our reported ratio is mainly driven by the

remuneration of the CEO compared to 2024. Read more in Corporate governance – Remuneration Report – Remuneration at a glance

We aim to attract, retain and motivate highly educated talent who are critical to deliver upon our strategy and growth ambitions. In pursuit of this ambition, we continually monitor the competitiveness of our remuneration packages.

Therefore, our annual total remuneration ratio is influenced by external market trends across the world.

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Additional disclosures

Methodology on targets

This section outlines the methodology used to

define and measure our Attractive workplace for

all targets, that have been set taking into account

insights gathered from employees and/or

employee representatives.

2025 and 2024 performance measured against

targets includes all employees unless otherwise

stated. Baseline figures prior to 2024 (with

exception of our results on the annual

engagement survey) exclude ASML Berlin GmbH

employees due to consolidated numbers not

being available at the time of setting these targets.

Talent attraction, employee engagement and

retention

Improve talent attraction by achieving specific employer

brand score rankings in the Netherlands (top 5), United

States (top 75), China (top 100) and Taiwan (top 5),

by 2025

This target is based on a ranking of ASML and its

competitors in the Universum employer brand

ranking, which collects input from approximately

60,000 students and professionals annually

among all priority countries.

We measure our employer brand to monitor how

well we are known and rated as an employer by

external audiences and potential employees.

In 2024, Universum discontinued its syndicated

report for Taiwan. Therefore, to obtain comparable

data, a custom Universum survey for both students

and professionals was conducted in 2025.

Similarly, in 2025, Universum discontinued its

syndicated report for China – although we

obtained a customer survey, the data was not

comparable.

Targets are monitored and adjusted based on

discussions with Universum and our regional

teams as to what is feasible, as well as through

benchmarking against competitor companies in

each market.

Survey outcomes are used to determine our

focus in terms of employer brand strategy and

communications for the upcoming period, and

whether target levels should be recalibrated.

By 2025, be within 2 percentage points of (or higher

than) the benchmark employee engagement score

achieved by the top 25% of companies

Every year we ask employees to complete

our employee engagement survey. We use a

validated survey from an external provider, with

the employee engagement score derived from

a subset of five questions.

The scope of the survey and the target covers all

employees and the ‘N1-conversion’ category of

non-employees, who have worked at ASML for

at least three months prior to taking our annual

employee engagement survey.

We want to compare ourselves and grow

toward the top-performer category. Our three-

year rolling average engagement score is to be

within two percentage points of (or higher than)

the benchmark set by the top 25% of companies.

The top performing benchmark is a three-year

rolling average of the 75th-percentile favorable

scores achieved by companies partaking in the

survey globally.

Have an attrition rate of <7% by 2025

Our annual attrition rate is calculated as a monthly

average across the reporting period. The monthly

attrition rate is calculated as a percentage of

the number of FTEs that left ASML during each

month, compared to the total number of FTEs

at the end of that month, multiplied by 100.

The calculation basis for this target differs from

the ESRS-required ‘turnover’ metric – that is

based on headcount.

Learning and development

By 2025, 80% of all employees should have at

least one development item (in progress) in their

development plan

This target covers employees who have at least

one development item that has a ‘last updated’

status within the past 12 months, divided by the

number of employees. Measurement is taken at

the end of the annual Develop & Perform

program (March).

The scope of this target covers all employees

excluding ASML Berlin GmbH.

This target is based on historical performance

and the ambition to improve, considering what is

feasible – given that new hires generally need

some time to define development goals.

Achieve a learning satisfaction score of 80% or

higher for 2025

This score reflects the percentage of trainings

rated as favorable by participating employees

and non-employees for the period.

Inclusion and diversity

Achieve 24% inflow of women (all job grades) by 2025

This target is based on all new-hire women

employees (including re-hires) that have joined

ASML during the reporting year. This does not

include internal moves or transfers, nor does it

include non-employees converting to employees.

Actual performance is determined by the

percentage of all female employees who joined

ASML, compared to the total number of joiners

during the reporting period in FTE. Our US

employees are excluded from our 2025 reporting

to comply with the US EO that took effect in

Comparatives remain unadjusted.

Achieve 24% inflow (external hires only) of women to

middle management and above (job grades 9+) by 2025

This target is based on all new-hire women

employees (including re-hires) that have joined

ASML in middle management roles and above

during the reporting year. This does not include

internal moves or transfers, nor does it include

non-employees converting to employees.

Actual performance is determined by the

percentage of all female employees who joined

ASML in job grades 9+, compared to the total

number of joiners to job grades 9+ during the

reporting period in headcount. Our US employees

are excluded from our 2025 reporting to comply

with the US EO that took effect in 2025.

Comparatives remain unadjusted.

Achieve 14% representation of women in senior

leadership roles (job grades 13+) by 2026

This target is based on all employees in senior

leadership roles (job grade 13+) as at the end

of the reporting period.

Actual performance is determined by

the percentage of female FTEs in job grade 13+,

compared to the total FTEs in job grade 13+ on

the last day of the reporting period. Our US

employees are excluded from our 2025 reporting

to comply with the US EO that took effect in

Comparatives remain unadjusted.

The scope and calculation basis for this

target differs from the ESRS-required ‘gender

distribution at top management’ metric – which

is reported using headcount and includes ASML’s

employees worldwide.

By 2025, be within 3 percentage points of (or higher

than) the benchmark inclusion score achieved by the

top 25% of companies

This target is based on our annual employee

engagement survey and derived from a subset

of eight inclusion-related questions. Our three-

year rolling average inclusion score is to be within

three percentage points of (or higher than) the

benchmark set by the top 25% of companies.

The top performing benchmark is a three-year

rolling average of the 75th-percentile favorable

scores achieved by companies partaking in the

survey globally.

The scope of the survey and the target is all

employees and ‘N1-conversion’ category of

non-employees, who have worked at ASML for

at least three months prior to taking our annual

employee engagement survey.

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General disclosures	Environmental	Social	Governance
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Attractive workplace for all: Additional disclosures (continued)

Occupational health and safety

Achieve a recordable incident rate of 0.96 or below,

by 2025

Our target is based on industry world-class

performance, using OSHA (U.S. Occupational

Safety and Health Administration) recordable

work-related incident cases applicable at the time

the target was set. Performance measured

against target includes all employees and N1-

conversion (non-employees).

Following the change set out below, differences

in definition and scope continue to remain

between our entity specific metric ‘Recordable

incident rate’ and the ESRS metric ‘Employee

recordable work-related injuries’ (number and

rate) that we also report on:

•In the Recordable incident rate the OSHA

definition of ‘work-related’ is followed, while the

ESRS guidance is applied to Employee

recordable work-related injuries.

•In the Recordable incident rate all recordable

work-related incident cases (including ill health

and injuries) are included as defined by OSHA,

while only recordable work-related ‘injuries’ are

included in the Employee recordable work-

related injuries.

•In the Recordable incident rate, all employees

as well as N1-conversion (non-employees) are

included, while only employees are included in

the Employee recordable work-related injuries.

Change in preparation: Recordable incident rate

In 2025, we converted our unit of measure from

incident cases per 200,000 hours worked (2,000

standard annual hours worked per FTE for every

100 FTEs) per OSHA guidelines to the estimate of

annual hours worked per FTE for every 500 FTEs.

This conversion was made to better align to the

S1-14 ESRS reported Employee recordable work-

related injuries rate and to support clearer

interpretation by stakeholders where reported

rates differ.

With this, the target incident rate of 0.16 converts

to 0.96. Similarly, the 2024 comparative incident

rate of 0.19 converts to 1.14. Due to the lack of

availability of 2022 data to calculate the estimated

number of hours worked, we are not able to

convert the baseline of 0.18.

Labor conditions

By 2025, 100% of employees earn above the adequate

wage benchmark

Methodology for this target is based on the

S1-10 Adequate wages metric reporting.

Well-being

By 2025, be within 2 percentage points of (or higher

than) the benchmark well-being score achieved by the

top 25% of companies

This target is based on our annual employee

engagement survey. The well-being score is

derived from a subset of eight related questions.

Our three-year rolling average well-being score is

within two percentage points of (or higher than)

the benchmark set by the top 25% of companies.

The top performing benchmark is a three-year

rolling average of the 75th-percentile favorable

scores achieved by companies partaking in the

survey globally.

The scope of the survey and the target is all

employees and ‘N1-conversion’ category of non-

employees, who have worked at ASML for at

least three months prior to taking our annual

employee engagement survey.

Methodology on metrics

General methodology: Scope includes all

ASML employees worldwide. Reporting is

based on actual data registered on our workforce

databases unless otherwise stated by use of an

estimate. The number of employees has been

reported on a headcount basis as at the end of

the reporting period.

S1-6 Employee characteristics

Employees

The gender breakdown is based on gender

as self-specified by employees on our

workforce databases.

The definition of ‘employees’ and ‘temporary

employees’ applied in accordance with ESRS

differs to the definitions applied for reporting in

the Consolidated financial statements.

‘Temporary employees’ reported in the

Consolidated financial statements comprises

contractors or agency placements that meet

the definition of ‘non-employee’ under ESRS.

Turnover

Employee turnover is reported based on the

headcount of employees who leave ASML

voluntarily or due to dismissal, retirement or

death in service.

The rate of employee turnover for the period is

calculated on a headcount basis as a monthly

average across the reporting period.

Change in preparation: Turnover

In 2025, we redefined our scope to capture

dismissals occurring at the end of contract

duration. Accordingly, the comparative ‘Number

of employee turnover’ (increase of 174) and

‘Employee turnover rate’ (increase of 0.4%) have

been revised to ensure consistent and

comparable reporting.

S1-8 Collective bargaining coverage and

social dialogue

The coverage of collective bargaining agreements

has been determined based on the scope stipulated

in the respective collective bargaining agreements.

The employees covered by social dialogue

has been determined based on the number of

employees within our establishments where

works councils or employee representatives

have been duly elected.

S1-9 Diversity metrics

The gender distribution in number and percentage at

ASML’s top management level has been determined

in relation to top management as defined.

S1-10 Adequate wages

Adequate wage assessment: performed annually

at the end of the period for each location where

we operate. ASML’s lowest wage is compared to

the adequate wage benchmark for each location.

ASML lowest wage: ASML lowest wage consists

of the annual basic wage at an FTE basis and

fixed payments guaranteed to employees at the

time of the assessment.

Adequate wage benchmark: The adequate

wage benchmark is based on the higher of the

most recent minimum and living wage (lower-

bound guidance) thresholds per location, which

we considered as best-practice. The most recent

thresholds are sourced from a reputable

independent third party.

S1-13 Learning and development metrics

Performance and career development review:

As part of our Develop & Perform program,

employees receive an annual performance and

career development review as defined.

Employees not eligible for an annual performance

and career development review are: those with a

hire date on, or after, October 1; members of the

BoM; and those marked as ineligible by HR&O

due to long-term absence.

The percentage of employees with a performance

and career development review is reported in

proportion to both the total number of employees

and the number of employees eligible, by gender.

Average number of training hours per

employee and by gender methodology: The

average number of training hours per employee

(and by gender) is based on the number of

training hours completed and registered by

employees across our learning platforms.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Additional disclosures (continued)

S1-14 Health and safety metrics

Percentage of employees covered by our

health and safety management system: The

percentage is determined in relation to employees

with access to and covered by our OHS

management system.

Number of employee, on-site non-employee

and other worker fatalities as a result of work-

related injuries: This is based on the number of

recordable work-related injuries that resulted in

death, as reported in our OHS management

system during the period.

Number of recordable work-related injuries

by employees: This is based on the number of

employee recordable work-related injuries, as

reported in our EHS management system during

the period.

Rate of recordable work-related injuries by

employees: This is determined based on the

number of employee recordable work-related

injuries divided by the estimated number of hours

worked by employees during the period,

multiplied by 1,000,000, to represent the number

of respective cases per one million hours worked.

Estimate of the number hours worked by

employees for the period: Due to the limitation

of internal data available on actually hours worked

by our employees, we have applied an estimated

based on the normal scheduled hours of work

per ASML location, taking into account paid

vacations, paid public holidays and sick leave.

S1-16 Remuneration metrics (pay gap and

annual total remuneration)

Annual remuneration: Annual remuneration

comprises all four components of ASML’s

Remuneration Policy: base salary; STI (cash

bonus); LTI (share-based incentive), and pension

and other benefits.

Annual remuneration represents FTE basis, in

local currency translated to the reporting currency

using the average exchange rates for the period.

This is not adjusted for purchasing-power

differences between countries.

Base salary comprises basic wage for 12 months

and guaranteed fixed payments.

STI (cash bonus) in the form of performance-

related plans is based on the employee’s job

grade, the type of bonus plan and the company/

individual performance. STI data used for ESRS

reporting is consistent with the Consolidated

financial statements accrual for the period without

applying a pro-rata for part of the year, in order to

reflect the annualized value.

financial statements – Notes to the Consolidated

financial statements – 18. Personnel expenses and

employee information

LTI (shared-based incentive) is an equity-based

bonus award that, when vested, results in shares

being granted to ASML employees during the

period. LTI data used for ESRS reporting is

consistent with the LTI expense for the period

reported in the Consolidated financial statements.

financial statements – Notes to the Consolidated

financial statements – 20. Share-based

compensation

Pension and other benefits: Consists of both

cash and in-kind benefits including cash allowances,

such as shift and car allowances, and in-kind

benefits such as use of a company car and

ASML-funded health insurance.

For the purpose of reporting these metrics, we

have excluded all one-off benefits such as relocation

allowances, severance and long-service awards

as well as inconsequential benefits, for example

meal allowances.

Gender pay gap: This metric is determined as

the difference of average gross hourly pay levels

between female and male employees, expressed

as a percentage of the average gross hourly pay

level of male employees.

The number of employees used in the calculations

represents all active employees, excluding those

that have been with the company for three months

or less at the end of the reporting period. For the

purpose of calculating the gender pay gap we

exclude employees falling within the ‘Other’ and

‘Non-disclosed’ gender categories.

The gross hourly pay level is determined by

dividing an employee’s annual remuneration by

the number of full-time scheduled hours of work

per ASML location.

The average gross hourly pay level of female and

male employees is determined separately.

Comparatives for two previous reporting periods

is not possible as the data and methodology

applied in reporting periods prior to 2024 are not

in accordance with ESRS. Therefore, comparatives

for only one previous period has been reported.

Annual total remuneration ratio: This ratio is

determined by dividing the annual remuneration

of the highest-paid employee by the median

annual remuneration (excluding the highest-paid

employee) for the period.

This metric differs to the Internal pay ratio disclosed

in our remuneration report in accordance with

the Dutch Corporate Governance Code. The

denominator used in calculation of the Internal

pay ratio is based on the average personnel

expenses per FTE, whereas the median annual

remuneration and headcount unit of measure is

applied for reporting under ESRS.

The annual remuneration of the highest-paid

individual is disclosed in our Remuneration report

and is used as the numerator in this calculation.

Remuneration report

Median annual total remuneration: The

median annual total remuneration for the period

is determined by taking the mid-point annual

remuneration of all active employees at the end

of the reporting period, excluding the highest-

paid employee and those that have been with

the company for three months or less as at the

end of the period.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain

We aim to prevent, mitigate and manage adverse environmental and human rights impacts in our value chain

Why it matters

...for the planet
We believe that microchip-enabled digital technologies are among the most<br><br>critical tools for societal advancement. At the same time, we understand<br><br>that technological development presents environmental and human rights<br><br>challenges within global value chains. The goods and services we purchase,<br><br>the design choices we make and the products we sell are potentially linked<br><br>to impacts on the environment and human rights. We conduct due diligence<br><br>and work with suppliers and customers to implement responsible business<br><br>practices for protecting the environment and respecting human rights.		...for ASML
---
We are dedicated to preventing and mitigating adverse environmental<br><br>and human rights impacts in our value chain. This is also what customers,<br><br>investors, employees and regulators expect from us. By committing to<br><br>international environmental and human rights standards we work to meet<br><br>stakeholder expectations, ensure compliance with regulations and build a<br><br>resilient value chain.<br><br>Our approach aligns with our employees’ expectations regarding responsible<br><br>business conduct, and contributes to the environmental and human rights<br><br>objectives of our customers and suppliers. It also supports our shareholders’<br><br>desire to improve long-term sustainability performance and minimize<br><br>business costs.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Responsible Business<br><br>Alliance (RBA)<br><br>self-assessment completed<br><br>(in %)	Suppliers with overall high<br><br>risk evaluated and follow-<br><br>up agreed (in %)
90%	100%
2024: 91%	2024: 100%
2025 target: 90%	2025 target: 100%

Our sub-topics

Responsible<br><br>product design	Responsible<br><br>supply chain	Responsible<br><br>product use

ASML_Sustainbility_Social_Responsible-value-chain_v6.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain (continued)

Key
	Actual positive impact	Risk
	Potential positive impact	Opportunity
	Actual negative impact
	Potential negative impact

Our material impacts, risks and opportunities relating to Responsible value chain.

Upstream

Own operations

Downstream

Potential impacts on human rights of supply chain workers in on-site facility services,<br><br>electronics manufacturing and mining of minerals (Responsible supply chain)
Failure to comply with rules and regulations regarding conflict minerals (Responsible<br><br>supply chain)		Potential impact on the health and safety of customer and partner employees while<br><br>working on ASML systems, and associated risk if the impact materializes<br><br>(Responsible product design)
---
Potential impacts on human rights of workers at customers and beyond inherent to the<br><br>technology sector (Responsible product use)
Improved quality of life through access to technology and digital services (Responsible<br><br>product use)
Potential impacts on society due to potential misuse of technology<br><br>(Responsible product use)

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing responsible value chain

| Levers for action | | --- || Our approach | | --- |

We strive to identify, assess and prioritize the

most salient environmental and human rights

risks and impacts across our value chain,

from raw materials extraction to end of life

(EoL). A transparent value chain is essential

to identify risks and impacts at the earliest

stage possible, as we strive to prevent,

mitigate and remediate impacts linked to

our purchased goods and services and the

use of our products.

Through our relationships with customers

and direct suppliers, we identify, assess

and manage impacts and risks. We have

less visibility and influence regarding impacts

deeper upstream and downstream in our

value chain, but strive to identify higher-risk

sectors, geographies and value chains where

impacts occur – and seek ways to take a role

in appropriately addressing them.

Material topics

We have identified three material sub-topics

worldwide representing our scope of work:

•Responsible product design

•Responsible supply chain

•Responsible product use

Our six-step due diligence

framework defines how ASML

identifies, prevents, mitigates and

accounts for actual and potential

impacts across its value chain.

Our environmental and human rights

due diligence framework is based on

the following six steps, as described in

the OECD Due Diligence Guidance for

Responsible Business Conduct.

1. Embed in policies and management

system

Our responsible value chain policy

outlines our commitments, principles and

requirements for managing environmental

and human rights risks and impacts across

our value chain – also referred to as

environmental and human rights due

diligence. This includes how we manage

such matters in relationships with our

customers, suppliers and other business

partners, and in our decision-

making processes.

As a member of the RBA, we have adopted

its Code of Conduct – a set of standards

relating to labor (human rights of all

workers), health and safety (minimizing the

incidence of work-related injury and illness),

environment and ethics. We expect our

suppliers to comply, too, and to cascade

this requirement to their own suppliers.

We take a risk-based approach to include

ESG requirements in supplier contracts and

communicate our expectations to suppliers

via various channels, including the ASML

Supplier Handbook, Conflict Minerals

Program and RBA Program, where relevant.

We regularly review and update our ESG

sustainability policies as operations, supply

chains and business relationships evolve,

based on our assessment of new impacts.

2. Assess and prioritize adverse impacts

We’re committed to making our value chain

more transparent, and regularly identify and

assess potential and actual environmental

and human rights impacts across our value

chain. This includes:

•Identifying and assessing impacts we

have caused through our operations or

have contributed to in direct business

relationships, and those linked to us

through purchased goods and services,

sold products and business relationships.

•Identifying and assessing general areas

where adverse impacts occur or might

occur, considering risk factors related to

geography, sector and materials.

•Identifying and assessing impacts linked

to specific direct and indirect business

partners based on entity-specific risk

factors and information.

•Identifying and assessing impacts linked

to materials used in product design and

purchased goods, based on material-

specific risk factors and information.

•Taking into account any known or

reasonably foreseeable circumstances

related to the use of ASML’s products

and services in accordance with intended

purpose, or under conditions of reasonably

foreseeable improper use or misuse.

•Engaging with stakeholders across our

value chain, or with their representatives,

to understand how they are or might

be impacted.

•Prioritizing adverse impacts for risk

prevention and mitigation, based on the

severity of actual impacts and the severity

and likelihood of potential impacts.

3. Prevent, mitigate and manage

adverse impacts

We strive to avoid causing or contributing

to negative impacts on the environment

and human rights, addressing such

impacts when they occur. In situations

where adverse impacts are linked to ASML

through purchased goods and services,

products and business relationships, we

seek ways to take a role in addressing

them. The nature and extent of due

diligence depends on the severity and

likelihood of an impact, as well as our

involvement, leverage, and ability to

effect change in the situation.

Responsible product design

We recognize that design decisions and

material choices in our products – as well

as their use and manufacturing thereof –

can impact the environment and human

rights across our value chain. We are

committed to identifying, preventing,

and mitigating these impacts through

responsible product design practices.

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing responsible value chain (continued)

Levers for action (continued)

Our approach includes:

•Aiming to comply with all applicable laws

and regulations related to the use and

disposal of materials and components.

•Developing and maintaining an inventory

of high-risk materials used in our product

designs and those outsourced from

suppliers, based on assessments of

environmental and human rights impacts.

•Collaborating with suppliers, business

partners and industry initiatives to identify

the use of high-risk materials and jointly

pursue responsible alternatives.

•Choosing materials with lower impacts on

the environment and human rights,

redesigning parts and modules to reduce

material risks, and limiting or phasing-out

high-risk materials when technologically

feasible and commercially viable – and

when other measures are insufficient to

manage risks.

•Incorporating EoL considerations in

product design, enabling safe disassembly,

removal and responsible disposal of

components containing high-risk materials.

Responsible supply chain

We expect suppliers and other third parties

to uphold our standards for respecting

the environment and human rights, and

encourage others across the supply

chain to do the same.

We conduct due diligence to manage

impacts linked to direct and indirect

suppliers, including:

•Considering environmental and human

rights risks in selection of new suppliers,

and conducting risk-based screening of

suppliers prior to entering into

business relationships.

•Seeking contractual assurances regarding

environmental and human rights topics,

including a requirement for suppliers to

comply with the RBA Code of Conduct

and relevant legislation.

•Providing guidance, support and training

opportunities to help suppliers improve

their due diligence capabilities.

•Monitoring suppliers to ensure they

consistently meet ASML’s standards, and

tracking development of environmental

and human rights risks and impacts.

•Managing risks and impacts by

investigating high-risk findings and

adverse impacts, and requesting that

suppliers develop preventive and

corrective action plans where needed.

•Disengaging from business relationships

after failed attempts at mitigation, or

where mitigation does not seem feasible –

taking into account whether terminating a

business relationship would in itself have

adverse environmental or human

rights impacts.

•Engaging in industry-wide collaborative

efforts to implement due diligence

standards and address environmental

and human rights risks and impacts.

Track implementation and results

We periodically review our own due

diligence processes – and those of our

business relationships – to ensure effective

implementation, to drive continuous

improvement and to track whether responses

to risks and adverse impacts are adequate.

To enable value chain workers to raise

human rights concerns, we maintain an

accessible grievance mechanism – our

Speak Up Service – which is available to

everyone. It allows concerns to be raised

anonymously and without fear of retaliation.

We also encourage our suppliers and

business partners to maintain or participate

in effective grievance mechanisms that

ensure their employees and other affected

individuals can report issues safely and

confidentially. To assess whether workers

are aware of and trust these mechanisms,

we include related questions in our ESG

questionnaires and address the topic during

supplier conversations, audits, and on-site

checks, focusing on the accessibility and

effectiveness of the grievance channels.

Communicate impacts and progress

We communicate relevant information on

due diligence policies, processes and

outcomes via:

•Reporting on environmental and human

rights due diligence in line with

applicable standards.

•Publishing easily accessible, appropriate

information on our website and at sites.

•Communicating relevant information to

impacted or potentially impacted rights

holders in a timely, culturally sensitive,

accessible manner.

Engaged stakeholders

Remediate impacted stakeholders

Employees, business partners and any

third party can raise questions and concerns

regarding potential Code of Conduct

violations – including environmental and

human rights impacts – with designated

ASML representatives, the Ethics Office,

or via our Speak Up Service.

Speak Up is available for all affected

stakeholders, including workers across our

value chain and other individuals whose

rights may be negatively impacted by our

business, as well as human rights interest

groups and trade unions.

Policy available at asml.com

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing responsible value chain (continued)

Responsible product use

Just as we are committed to protecting the environment and respecting human rights, we expect and encourage the same from our customers. Despite our efforts to conduct due diligence, we do not always know – and cannot control – which products our customers and their own customers create with the use of our products and services, and cannot prevent all potential misuse. However, we reserve the right to decline, restrict or cease business in the event of any violation of our responsible value chain policy or our Human Rights Policy.

We recognize our wide-ranging impact in society, contributing to global digitalization and transforming the ways in which people live and work. We believe that microchip-enabled digital technologies are among the most critical tools for societal advancement. Driving this positive impact for society is an integral part of our corporate vision and business strategy, with related policies, actions and targets embedded across our operations and tracked for effectiveness. At the same time, we understand that technological development presents human rights and environmental challenges within global value chains. One of the emerging environmental challenges facing the world today is the rapidly rising energy consumption of data centers as a result of the growth of AI. Addressing this issue will require more efficient AI models and improved semiconductors. If we do not act together as an industry, emissions from semiconductor production are forecasted to increase by a a factor of four in 2030. This is a key challenge that ASML and the entire industry must face. We continue to monitor our approach to responsible product use. Read more in Strategic report – Our business – Our products and services

We conduct voluntary due diligence on our customers by: •Considering environmental and human rights risks and impacts prior to entering new business relationships. •Seeking contractual assurances regarding environmental and human rights risks and impacts when relevant. Read more in Strategic report – Our business – Our marketplace

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General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible product design

| Our objective | | --- || We aim to adopt responsible design practices to prevent and mitigate potential impacts from material choices, manufacturing, and use of our products on human rights and the environment across our value chain. | | --- || Our scope | | --- |

The scope of this sub-topic covers

ASML’s product design. We recognize that

product design has an impact on sourcing,

manufacturing, delivery, and the safe use and

maintenance of our systems by customers

and partners.

Targets and performance

Currently, we have not set formal targets

for responsible product design. However, we

monitor KPIs to assess how well we integrate

responsibility into our design processes. This

includes tracking compliance with relevant

laws and regulations, most notably the EU

RoHS (Restriction of Hazardous Substances)

and REACH (Registration, Evaluation,

Authorisation and Restriction of Chemicals)

directives. This tracking helps us evaluate

our performance and identify areas for

continuous improvement.

Our actions and resources

How we manage product safety and

regulatory requirements

To help ensure our products and systems

comply with applicable regulations and

are safe, we focus on safety at every stage

of the product lifecycle: research, design,

development, production, transport,

installation, maintenance, upgrades

and decommissioning.

Our Global Product Safety and Regulatory

teams are part of Quality and Excellence, and

are accountable for our overall product safety

approach. To support safe design, we have

defined and implemented key risk areas and

associated product safety competencies in

line with the ISO 12100 standard in the

design of machinery. We have assigned

experts supporting individual projects to

include safety in the design process, and are

further extending our global expertise by

hiring country safety and regulatory experts.

Our Product Regulatory Committee,

chaired by the Head of Quality and Excellence,

sets safety policies and approves ways of

working. Our Safety and Regulatory Office

is tasked with tracking new product safety

legislation and standards, and monitoring

that our products are safe and compliant.

Our various regulatory boards are responsible

for decision-making on product safety and

regulations. Our strategy is to eliminate non-

compliance, monitoring compliance status

and risk mitigation.

Further to this, our Global Product Safety

and Regulatory organization maintains a

list of all relevant standards and regulations

relevant for product safety applicable to our

products and services. The Development and

Engineering organization defines the product

specifications, including the safety and

regulatory requirements. This includes

manufacturing, service and installation

instructions and procedures, and

requirements for suppliers.

Every product shipped that’s been developed

by ASML complies with SEMI S2 – the

Environmental, Health, and Safety Guideline

for Semiconductor Manufacturing

Equipment. We also specify as a general

guideline compliance to the machinery

directive, regardless of shipment destination.

Focus areas and activities for 2025 included:

•Increasing product safety in the

supply chain.

•Management of dangerous goods.

•Materials and substance compliance.

Resources

We have several teams working on the

safety of our products. The prevention

of harm to the environment and people

are closely inter-aligned, meaning it is not

possible to fully distinguish our resources

only for the objectives related to managing

our sustainability impacts and risks.

Looking ahead

Regulations, particularly environmental

ones, are expected to increase in 2026,

along with expanded reporting requirements

for chemicals in products. We experience

more frequent checks and mandatory

reporting from authorities, increasing

pressure on local compliance teams. As

a result, we aim to further strengthen our

local regulatory presence.

In the US, regulations are shifting from

federal to state levels, requiring increased

monitoring as customers operate across

multiple states. While the impact on us is

currently limited – since new restrictions

often target consumer products and the

semiconductor industry is usually exempt –

ongoing vigilance is required.

Responsible-Value-Chain_Responsible-Supply-Chaine_Pg265_v2.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible supply chain

| Our objective | | --- || Suppliers split by % spend | | --- | | Suppliers split by number || We aim to build a transparent supply chain that respects human rights and the environment, promotes positive contributions to society, and actively prevents and addresses potential negative impacts. | | --- || Our scope | | --- |

The scope of this sub-topic covers ASML’s

supply chain, from sourcing to delivery, and

applies across our global operations. Our

main focus is on our direct suppliers, who are

also in the best position to influence their

own supplier base. Our supply chain (see

diagram) covers our three main regions:

EMEA, North America and Asia.

ASML suppliers
We differentiate between our business-<br><br>critical, strategically important suppliers<br><br>and those in scope of the RBA Self-<br><br>Assessment Questionnaire (SAQ).<br><br>Business critical suppliers are responsible<br><br>for delivering a unique part and/or are<br><br>single-sourced, involve a switching time to<br><br>an alternative supplier of more than 12<br><br>weeks, or supply parts with long production<br><br>times. For those in scope of the RBA SAQ,<br><br>other factors are applied as our focus goes<br><br>beyond our own company – incorporating<br><br>environmental factors and human rights.		ASML suppliers
---

227598906949957

227598906950119

227598906950149

1,600 suppliers

1,350 suppliers

34%

Spend in 2025

227598906950209

227598906950220

227598906950160

227598906950177

| 272 business- critical suppliers generate 89% of product- related spend | | --- || 153 business- critical suppliers generate 19% of non- product- related spend | | --- |

227598906950245

227598906950256

€16.2bn

Total

47%

700 suppliers

1,450 suppliers

Product-related spend	72%
Non-product-related spend	28%

12%

Supplier base in 2025

The

Netherlands

EMEA

(excluding

The Netherlands)

North America

227598906950223

Asia

5,100

Suppliers

Product-related suppliers	900
Non-product-related suppliers	4,200
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---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible supply chain (continued)

Targets and performance

We have two targets relating to the RBA SAQ:

Achieve 90% completion of the RBA SAQ

by all suppliers in scope by 2025

	0%	20%	40%	60%	80%	100%
2024
2025
Achieved<br>				2025 target: 90%

111050674428740

We asked a total of 180 in-scope suppliers to

complete the RBA SAQ in 2025 (2024: 147).

In general, the results show a low to medium

risk level in our supply base.

By the end of 2025, 90% of the suppliers

(2024: 91%) in scope had completed the

RBA SAQ. The base year for this target is

2020 (88% completion).

Having achieved our target of 90% – we plan

to continue progressing on our responsible

supply chain journey, with the current target

remaining in place until 2026.

Achieve 100% evaluation of – and agree

follow-up action with – our suppliers

identified by the RBA SAQ as having

overall high risk, by 2025

	0%	20%	40%	60%	80%	100%
2024
2025
Achieved<br>				2025 target: 100%

111050674429268

The RBA SAQ process did indicate high

risks related to (forced) labor, health and

safety, environment or ethics standards

for several suppliers.

All nine suppliers (2024: nine) with an overall

high-risk score were evaluated. High-risk

elements were investigated and, where

applicable, follow‑up actions were agreed

with our suppliers. Most were related to

‘forced-labor’ (for example, use of migrant

workers) and ‘health and safety’ (for example,

incidents resulting in injuries). We targeted

additional follow-up actions at suppliers with

one or more high-risk elements, regardless of

their overall score (for example, risks related

to the absence of sprinkler systems, lack of

worker representation or lack of greenhouse

gas reduction targets).

Engaging with these suppliers provided

greater clarity on the identified risks and their

context, and resolved misinterpretations of

SAQ questions. In some cases, further

investigation revealed that processes outside

the scope of the RBA SAQ were already in

place and effectively mitigated the flagged

risks. No formal remediation plans were

required. All suppliers identified for follow-

up that needed policy updates have either

implemented appropriate updates or

confirmed plans to do so.

The base year for this target is 2020 (100%

followed-up). Having achieved our target of

100% – we plan to continue progressing on

our responsible supply chain journey, with the

current target remaining in place until 2026.

Tracking our performance

We track our performance on our responsible

supply chain targets by engaging with suppliers

via email, meetings and dedicated engagement

sessions, where we communicate our actions

and drive progress. We collect feedback from

suppliers about the potential roadblocks or

improvements related to these initiatives,

and share our experience with them.

We do not currently engage directly with

workers, consumers or end-users, or affected

communities across the value chain. As part

of our human rights saliency assessment, we

conducted stakeholder engagement with

legitimate representatives and credible

proxies of these stakeholder groups.

Conflict minerals

Like many companies in the semiconductor

industry, we use minerals and metals including

tin, tungsten, tantalum and gold (also known

as 3TG or conflict minerals). We need 3TG

minerals to manufacture our products, and

our products need 3TG minerals to function –

mainly in the electronics and optics categories.

We use gold, for example, in coating critical

electronic connectors, and tin for welding

electronic components and creating EUV light.

We are committed to responsible sourcing

of materials and support international efforts

to ensure the mining and trading of minerals

from conflict-affected and high-risk areas

does not contribute to conditions of armed

conflict or human rights abuses. We base our

due diligence measures on our sourcing of

3TG minerals on the five-step framework set

by the OECD Due Diligence Guidance for

Responsible Supply Chains of Minerals from

Conflict-Affected and High-Risk Areas.

There are several tiers of suppliers between

ASML and any smelter of conflict minerals,

and even more tiers when tracing a mineral

back to the mines of origin. We use a system

of controls focused on smelters’ sourcing

practices and leveraging tools developed by

the Responsible Minerals Initiative (RMI) –

such as the Responsible Minerals Assurance

Process (RMAP) for third-party audits of

smelters’ conformance with standards for

responsible sourcing.

Due to incomplete information received from

our suppliers, we were unable to fully identify

the countries of origin and processing

facilities for all conflict minerals. However,

the result of our due diligence indicates that

some of the 3TG minerals that we use

originated in the Democratic Republic of

the Congo (DRC) and other conflict-affected

and high-risk areas.

To address this, we are requesting high-risk

smelters to be audited or removed from our

supply chains. We have also put additional

emphasis on data validation, smelter risk

assessment and engagement with suppliers.

In total, 317 suppliers were in-scope for our

due diligence for the year 2024 (2023: 329),

out of which 84 (2023: 46) did not provide us

with (valid) information. We identified 341

unique smelters (2023: 482), of which 210

(2023: 236) are RMAP-conformant and 3 are

RMAP-active, meaning they are engaged in

the RMAP but a conformance determination

has yet to be made. In 2025, we followed-up

with suppliers who had the most high-risk

smelters or refiners in their supply chain and

developed mitigation plans with them. We

intend to report on our 2025 due diligence in

the Conflict Minerals Report (Form SD) due to

the SEC on May 31, 2026 and in our Annual

Report 2026.

at www.asml.com

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General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible supply chain (continued)

Key elements of the RBA SAQ
Element	RBA commitment
Labor	To uphold the human rights of<br><br>all workers (direct and indirect)<br><br>and to treat them with dignity<br><br>and respect as understood by<br><br>the international community,<br><br>including the International<br><br>Labour Organization (ILO)’s<br><br>eight fundamental conventions.
Health and<br><br>safety	To minimize the incidence of work-<br><br>related injury and illness, and to<br><br>ensure a safe and healthy working<br><br>environment. Communication and<br><br>education are essential in identifying<br><br>and solving health and safety<br><br>issues in the workplace.
Environment	Environmental responsibility<br><br>is integral to producing world-class<br><br>products and services. Adverse<br><br>effects on the environment, natural<br><br>resources and communities are to<br><br>be minimized, while safeguarding<br><br>the health and safety of the public.
Ethics	To meet social responsibilities and<br><br>achieve success in the industry,<br><br>the highest standards of ethics<br><br>should be upheld – including but<br><br>not limited to business integrity,<br><br>anti-bribery and corruption,<br><br>antitrust and competition, and<br><br>protecting privacy.
Members and participants are committed to<br><br>establishing a management system to ensure:
•Compliance with applicable laws, regulations<br><br>and customer requirements<br><br>•Conformance with the code standards<br><br>•Identification and mitigation of operational risks<br><br>•Facilitation of continuous improvement		Our actions and resources
---

Each year, we request that high-risk

suppliers submit an RBA SAQ to validate

their compliance with the RBA Code of

Conduct and determine any potential gaps in

relation to its standards. This contributes to

identifying and assessing impacts, risks and

opportunities across the supply chain (step

two of our environmental and human rights

due diligence framework, as detailed in ‘How

we are managing responsible value chain’).

In 2025, we expanded the scope of suppliers

within our RBA monitoring program.

Our policy is to discuss all high-risk findings

with the supplier to evaluate the risk and

determine whether an improvement plan

is needed. When SAQ scores are high-risk,

we request that the supplier elaborates on

their responses and/or answers follow-up

questions. If the high risk remains after

further evaluation and clarification, we work

with the supplier to define an action plan.

During regular table meetings we track

and assess both the proportion of suppliers

who have completed the RBA SAQ and the

progress made on the high risks evaluated

and related follow-up activities.

We also assess supplier sustainability

aspects through on-site assessments

conducted under our Quality – Logistics –

Technology – Cost – Sustainability (QLTCS)

program, and actively follow up on gaps and

risks identified. We use learnings and findings

from the ‘Sustainability’ assessments to

further update our procurement policies.

During 2025 we conducted 114 audits (2024:

107). We also completed a due diligence

gap assessment and started executing our

roadmap to align our due diligence activities

with the requirements of upcoming

regulations, including the EU CSDDD.

Resources

The resources needed for this include our

annual RBA membership fee and FTEs

dedicated to the Strategic Sourcing and

Procurement and Risk and Business Assurance

& Security teams executing these activities.

Depending on the amount of follow-up needed

throughout the year, this results in approximately

four FTEs allocated to these actions.

Looking ahead

With significant new legislation on the horizon,

we are preparing to adapt our processes

accordingly. To strengthen our capabilities

regarding the management of a responsible

supply chain, including responsible minerals

sourcing, we are maturing our data collection

and processing – including the implementation

of an integrated support system. We will

continue to refine our contractual clauses to

secure formal commitments from suppliers,

ensuring respect for human rights and

environmental protection across our supply

chain. In addition, we will further enhance

our management of human rights and

environmental risks by embedding risk

assessments into the supplier onboarding

process via our Third Party Risk Management

system. These steps will help streamline

compliance, follow-up and risk management.

We continue monitoring our due diligence

practices with expected future requirements

of the EU CSDDD and the EU Batteries

Regulation and further develop capabilities

for managing forced-labor risks. We will build

on the results of the saliency assessment by

further identifying environmental impacts.

Methodology on targets

This section outlines the methodology used to define and measure our targets related to Responsible value chain. Responsible supply chain Achieve 90% completion of the RBA SAQ by all suppliers in scope by 2025 We scope suppliers for self-assessment based on (potential) impacts on the environment and human rights, considering the sector and country they operate in or services they provide. We determine country and sector risk using the RBA risk assessment platform, and add on-site service providers, labor agents and waste handlers to our scope as categories that are inherently high risk. We also add suppliers that were in scope last year, and those for which ESG risks or impacts are found via our ongoing screening of media and other public sources. Achieve 100% evaluation of – and agree follow-up action with – our suppliers identified by the RBA SAQ as having overall high risk, by 2025 We assess suppliers classified as overall high- risk based on the RBA SAQ. This process involves reviewing identified risks and determining appropriate follow-up actions, which may include requesting additional information, adding contractual requirements, conducting audits, or recommending third- party training. We only count an assessment as complete when the review of findings is finalized and agreed actions are documented. The scope of this target is limited to suppliers for which an overall high risk is identified in the RBA SAQ.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem

We aim to build a thriving, multi-regional innovation ecosystem that helps solve some of humanity’s toughest challenges.

Why it matters

...for the planet
Building a strong foundation that benefits our partners and other companies,<br><br>organizations and neighboring communities. Through ESG-focused<br><br>research, startups, scaleups, platforms and collaborations, we aim to<br><br>support innovative ideas and increase the technical talent pool needed<br><br>to solve some of society’s key challenges.		...for ASML
---
Consumers across the world are using ever-more powerful and sophisticated<br><br>devices that are increasing the demand for microchips, in turn driving<br><br>demand for the chipmaking systems that make them smaller, faster, cheaper<br><br>and more powerful and energy-efficient.<br><br>We can only meet this demand by consistently and continuously advancing<br><br>our technology through innovation, in close collaboration with customers<br><br>and suppliers. Such innovation helps us attract and retain the best talent<br><br>and drives our long-term success.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Number of ESG-focused<br><br>scaleup companies<br><br>supported (cumulative<br><br>in numbers)	Value of in-kind support<br><br>for startups and scaleups
15	€1.5m
2024: 13	2024: €1.3m
2025 target: 14	2025 target: N/A

Our sub-topics

ESG innovation

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General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem (continued)

Our material impacts, risks and opportunities relating to innovation ecosystem

Partners

| Levers for action | | --- || Our approach | | --- |

ASML’s experts are architects and

integrators who work together with external

partners across the innovation ecosystem,

pushing the boundaries of what we can

achieve. We aim to develop long-term

innovation partnerships and collaborations

based on trust and knowledge-sharing.

Pooling our expertise and resources enables

us to build a stronger knowledge network

and create new technological solutions that

benefit the whole of society – as well as

sharing risks and rewards to accelerate

innovation. ESG innovation is one of the

focus areas of our wider Community

Partnership Program (CPP).

Valued Partner in our communities – How we are

managing valued partner in our communities

Where we believe we can add unique

value, with access to highly qualified

resources, technologies, licenses, supply

chain partners and co-investors, we aim

to support innovative ideas that solve ESG

challenges relating (but not limited) to

climate action, circularity, health and

responsible use of technology.

We partner and collaborate through the

following channels:

•ESG-focused research: Stimulating

breakthrough research by partnering on

projects that help meaningfully solve ESG

sustainability challenges.

•ESG-focused startups and scaleups:

We partner with tech funds such as

HighTechXL, DeepTechXL, Make Next

and several venture capital funds that

support scaleups and startups, selected

for their ambition to contribute to a better,

more sustainable world. Startups and

scaleups in this scope either focus on ESG

breakthrough technologies or innovative

sustainable business strategies.

•ESG-focused platforms and collaborations:

We collaborate with local, industry and

global platforms to jointly tackle ESG-

related challenges – including with the

Confederation of Netherlands Industry

and Employers (VNO-NCW), SEMI’s

Sustainability Advisory Council and

the SCC.

| Impact on society and stakeholders through ASML’s innovation ecosystem focused on ESG-related research, startups, scaleups, platforms and collaboration (ESG innovation) | | --- || Key | | | --- | --- | | | Actual positive impact |

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General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation

| Our objective | | --- || We aim to drive ESG-focused innovation that supports ideas and initiatives addressing key sustainability challenges, creating positive impact for local communities and society. | | --- || Our scope | | --- |

Our scope is the global ecosystem of innovation partners

and collaborators working together to solve key

ESG challenges.

| Strategic support platforms for startups and scaleups | | --- || Make Next Platform | | --- |

In 2025, the supporting original equipment

manufacturer (OEM) partners of the Make

Next Platform (MNP) – ASML, Huisman,

Thales and Vanderlande, together with the

non-profit Stichting Technology Rating (STR)

– established a new foundation: Stichting

MNP. The platform will secure the future

support of young, innovative, high-tech

scaleups that have proven to have the

potential of becoming one of the next

international Dutch OEM players in the

high-tech make industry.

MNP supports emerging high-tech ventures that

have moved beyond the startup phase and are ready

to expand. Through the exchange of best practices,

business experience and coaching from senior

corporate experts, MNP partners support scaleup

companies to become global players by giving them

access to their internal and external networks. Strict

entry criteria and monitoring procedures are applied to

secure a ‘fit’ and optimize the chance for success.

HighTechXL

ASML is one of the main shareholders of

HighTechXL, together with other tech-minded

partners such as Philips, research institute

TNO, Brabantse Ontwikkelings Maatschappij

and High Tech Campus Eindhoven.

Through HighTechXL, we build and accelerate impactful

startups by combining high-tech entrepreneurial talent

and relevant technologies from reputable tech partners

such as ESA, CERN, Fraunhofer, imec and TNO – with

the goal of solving major global societal challenges.

ASML talent joins selected startups for three months,

for 30% of their time. They define their learning goals

and benefit from the development of enriched skills and

mindsets through this unique entrepreneurial experience.

DeepTechXL

In 2022, we became a strategic investor

and co-initiator in DeepTechXL Fund I, a

new Dutch deep-tech fund of now €118

million and a follow-up to HighTechXL.

Together with other strategic investors and co-initiators

– Philips, Brabantse Ontwikkelings Maatschappij, TNO,

PME Pension Fund and Invest-NL – the fund provides

deep-tech startups and scaleups with access to

knowledge, network, technology, licenses and business

development support.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation (continued)

Targets and performance

Amount invested to realize ESG

innovation (€/employee) by 2025

	€0	€150	€300	€450	€600	€750	€900
2024
2025
				2025 target: N/A

139

Of our total CPP investment, we invested

€28.8 million (2024: €12.5 million) in

programs on ESG-focused research,

startups, scaleups and collaborations in

2025, representing €665 per employee. While

no stand-alone target is set for ESG

Innovation, these investments are reflected in

the performance against our overarching

CPP target of €2,000 per employee by 2025.

Although we did not reach our overall target

by 2025, we remain committed to investing in

ESG Innovation. To support this effort, the

current overarching target of €2,000 per

employee will remain the same, but we now

aim to reach it by 2030.

Valued Partner in our communities – How we are

managing valued partner in our communities

Number of ESG-focused scaleup

companies supported by 2025

(cumulative in numbers)

	0	8
2024
2025
	Achieved	2025 target: 14

824

Based on the strategic ambitions of the

platforms for startups and scaleups we

invest in, we set a target to support 14

ESG focused scaleups, as nominated by the

MNP, either through cash contributions or

support from ASML professional in hours. In

2025, we provided 5,908 (2024: 5,360) hours

of in-kind support, totaling €1.5 million (2024:

€1.3 million). In addition to our prior

commitments of near €33 million, in 2025 we

committed a further €0.5 million in financial

support.

Since founded in 2016, 15 ESG-focused

scaleups have been supported by the MNP,

including two alumni. In 2025, we further

developed the program to better suit their

needs and improve the impact of our

support – for example by adapting our

coaching programs.

Having reached our 2025 target, we continue

our efforts to invest in ESG-focused scaleups

and extend our target to reach 25 ESG-

focused scaleups supported by 2030.

Our target to achieve more than 20% of

ESG-focused startups reaching ‘star level’

became redundant in 2020, when

HighTechXL transformed into a venture-

building program for newly established

startups which typically take longer to

mature. Additionally, the focus is now on

deep tech – which typically requires a

longer time to develop.

Our actions and resources

ESG-focused research and ESG-

focused platforms, partnerships

and collaborations

ESG research and collaborations at TU/e

In 2025, an ESG program was initiated in

collaboration with the Technical University

of Eindhoven (TU/e). The ESG-focused

component of the program comprises ESG

research and construction of a cleanroom

facility. TU/e will execute ESG research over

10 years with an estimated average value of

€0.5 million per year that is designed to

primarily benefit society. The first projects

within this program will look at sustainable

supply chains – with the aim of yielding new

methods to lower the environmental impact

of companies’ supply chains. Other projects

will focus on circular design and climate

action. These projects will be defined and

executed in the coming years. Additionally,

€30 million will be invested to support the

construction of the new cleanroom on the

TU/e campus over 2025-2028. This new

cleanroom will act as a hub for collaborations

between different parties – such as TU/e,

the university of applied sciences, other

students, startups and large companies.

ASML – imec ESG program

In 2025, ASML and imec entered a new five-

year collaboration, with ASML supporting the

joint ESG research program. The projects will

be selected jointly to ensure each aligns with

our ESG innovation strategy, focusing on:

supporting climate actions, enabling the

energy transition and helping society with

health-related topics.

To support climate actions and conduct

disruptive research aimed at reducing

harmful emissions to the environment,

the program includes the exploration of

innovative battery technologies to accelerate

large-scale electrification. Research will

also be conducted on two environmentally

harmful compounds – CO2 and per- and

polyfluoroalkyl substances (PFAS) – to

develop a system with high efficiency and

high throughput to capture and convert CO2

to sustainable carbon-based fuels for the

chemical industry, alongside an ongoing PFAS

abatement initiative, which would capture

and degrade PFAS compounds in waste

streams through electrochemical oxidation.

To support responsible use of technology,

the program aims to make AI both sustainable

and safe. Research activities will focus on

improving connectivity efficiency by reducing

joules per bit of data transfer through on-

chip lasers and amplifiers. New compute

paradigms that require significantly less

power will also be explored.

Recognizing the impact of technological

advances on health, the partners have

outlined clear ambitions to:

•Enable affordable healthcare through

faster and cheaper drug discovery.

•Facilitate more effective healthcare via

personalized medicine.

•Reduce animal use in drug discovery

through in-silico designs.

To achieve these goals, two technology

platforms are being developed. The first

platform utilizes next-generation tools for

reading proteins and genes including

nanopores – tiny holes printed on silicon

wafers using advanced EUV lithography –

and lens-free CMOS image sensors that

capture high-resolution images. The second

focuses on replicating human physiology on

a microchip (also known as organ-on-a-chip),

paving the way for safer and more effective

techniques in modeling how drugs behave

in human-like environments.

Protecting Van Gogh’s artistic heritage

In 2025, we continued with the second phase

of our IMPASTO project that aims to assess

the status of Van Gogh’s masterworks and

methods to optimally study and conserve

them. The University of Amsterdam, the

Rijksdienst voor Cultureel Erfgoed and the

TU/e are active partners. By the end of the

project in 2028, we aim to create an ASML

science center in the Van Gogh museum,

equipped with several measurement tools

that can be used to study his works.

ASML_Sustainability_Social_Innovation-Ecosystem_ESG-Innovation_v2.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation (continued)

ESG-focused startups and scaleups

Our key actions in 2025 were:

•On average, 32 (2024: 20) of our experts

joined selected startup teams for 30%

of their time for a period of three months,

as part of the HighTechXL program.

•Providing structural coaching and ad hoc

technical support to help startup and

scaleup teams mature.

•Investing (indirectly) in ESG-focused

startups and scaleups through

platforms such as MNP, HighTechXL

and DeepTechXL.

•Challenging the startup ecosystem with

contests such as the ASML Young

Makers Award.

ASML Young Makers Award

The ASML Young Makers Award (AYMA)

celebrates ambitious students and young

entrepreneurs who are considering launching

their own ventures and are striving to grow

them further. We created this award

because we understand how valuable

support can be in those early stages.

In 2025, AYMA was organized in collaboration

with ASML and the four Dutch Technical

Universities as part of the annual University

Challenges hosted at each institution.

The award recognizes the most promising

student team that successfully integrates

innovation and sustainability into both

their product development and business

operations – with a particular focus on

tangible, manufacturable solutions. As

a company rooted in complex hardware

and system integration, ASML values ideas

that go beyond software alone, celebrating

innovations that demonstrate real-world

applicability through physical products,

engineered systems and scalable technologies.

Finalists were invited to present their

company and entrepreneurial vision to an

ASML jury member, who evaluates them

based on their passion, vision, perseverance,

and adaptability, as well as the viability and

sustainability of their innovation.

The prize includes:

•A €2,500 cash award.

•An invitation to ASML Startup Day, where

winners pitch their ideas to ASML experts

and receive coaching and consulting to

help accelerate their ambitions.

“Innovation drives progress

and opens endless

possibilities. But building a

successful startup is tough.

It takes resilience, creativity,

and determination. At ASML,

we understand the challenges

startups face. That’s why we

support them through our

Community Partnership

Program. The ASML Young

Makers Award shows our

AYMA 2025 Winners
•Proconceptious (University of<br><br>Groningen) – Offers personalized<br><br>contraception and preconception<br><br>care to support healthier, future-<br><br>proof generations.<br><br>•Heatlift Dynamics (TU Delft) –<br><br>Develops solid-state heat pumps<br><br>for precise, scalable thermal control<br><br>in advanced electronics.	•Piano Lites (University of Twente)<br><br>– Creates an LED-guided piano<br><br>system that makes learning intuitive,<br><br>fun, and accessible.<br><br>•Motex (TU Eindhoven) – Designs<br><br>an AI-powered smart helmet that<br><br>provides real-time alerts to enhance<br><br>motorcycle safety.

commitment to helping the

next generation of innovators.

Let’s keep shaping the future

of technology together."

Christophe Fouquet

President, Chief Executive Officer and Chair of the

Board of Management

Resources

Financial resources committed to enabling

ESG innovation projects are tracked and

reported under Targets and performance.

This excludes hours spent by supporting

teams, such as investments, legal, accounting,

tax and treasury required to execute on

these activities.

Looking ahead

In 2026, we continue to identify additional

projects and partners to further strengthen both

our regional and global innovation ecosystem.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities

We aim to ensure that ASML and communities benefit from each other’s presence and support each other’s development.

Why it matters

...for the planet

Our activities have an impact that goes far beyond ASML, influencing the communities in which we operate. Many of our locations, particularly our headquarters, have experienced substantial growth in recent years – a trend expected to continue. While this growth can generate jobs, foster innovation and increase prosperity, it also presents challenges, including added pressure on housing, infrastructure and essential public services in the surrounding areas.

...for ASML
When our communities thrive, so do we. We believe being a valued partner<br><br>to those around us is critical to our ability to scale effectively for our customers<br><br>and suppliers, and to deliver sustainable growth for our stakeholders. Many<br><br>ASML employees live in the communities where we operate, and want to be<br><br>proud of their company’s positive impact on their surroundings.<br><br>We know our activities and growth can affect these communities, so we<br><br>strive to build partnerships that benefit both sides today – and we work<br><br>together to support new development in the future.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Amount invested in<br><br>communities (per<br><br>employee), including<br><br>employee giving	Total cost of volunteering
€1,750	€5.6m
2024: €1,084	2024: €3.1m
2025 target: €2,500	2025 target: N/A

Our sub-topics

Attractive<br><br>communities	Inclusive<br><br>communities	Investing in<br><br>STEM education	Employee giving

Valued-Partners-in-Community(cont)_Our-Material-Impacts_Pg278_v3.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities (continued)

Key
	Actual positive impact	Risk
	Potential positive impact	Opportunity
	Actual negative impact
	Potential negative impact

Our material impacts, risks and opportunities relating to Valued partner in our communities.

| Communities | Own operations | | --- | --- || Impact on local communities around ASML’s offices and factories through pressure on regional mobility, and impact on local communities around our Veldhoven operations through nuisance, pressure on affordable housing and interaction between cultures (Attractive communities) | | --- | | Impact on local communities around our Veldhoven operations through pressure on the talent pipeline and education system (Inclusive communities) | | Risk of an unattractive community for future employees to live in (limited housing, social cohesion issues), impacting ASML’s ability to attract talent (Attractive communities, Inclusive communities) | | Adverse reactions from neighbors, local communities and municipalities due to the pressure from ASML on infrastructure, availability of talent, schools, housing and social cohesion, which can impact the license to effectively manage our business (Attractive communities, Inclusive communities) | | STRATEGIC REPORT | CORPORATE GOVERNANCE | SUSTAINABILITY | FINANCIALS | ASML Annual Report 2025 | 253 | | --- | --- | --- | --- | --- | --- | | General disclosures | Environmental | Social | Governance | | --- | --- | --- | --- |

How we are managing valued partner in our communities

Our approach

We partner with our communities to

significantly invest where we can make the

most meaningful impact, and aim to boost

the science, technology, engineering and

mathematics (STEM) talent pipeline for future

generations of tech creators. By collaborating

with partners in our innovation ecosystem

we fuel progress.

Our Community Partnership Program

(CPP), started in 2023, governs our global

contributions to both society and local

communities through investments based on

structural community stakeholder feedback:

Attractive communities

We work to improve and create positive

experiences in our communities, while

responsibly managing the negative impacts

of our growth.

Inclusive communities

We aim to understand and help address the

challenges faced by disadvantaged members

of our communities. We also seek to create

equal opportunities for students to unlock

their full potential.

STEM education

We help grow the STEM/technical talent pool

that society needs to solve some of its

key challenges.

ESG innovation

We use our knowledge and expertise to

support research, startups and scaleups,

and collaborate with platforms and partners

on projects with great societal benefits. This

helps create a diverse innovation ecosystem

that is able to solve ESG challenges

facing society.

Innovation ecosystem

Employee Giving program

We also support our employees in their

efforts to give back to their community in

their areas of interest. Through our Employee

Giving program, we match employee donations

up to €10,000 per employee per year, and

support their volunteering initiatives.

Our Valued Partnership approach applies

worldwide, to all our employees and partners

across the value chain and is closely linked to

our Code of Conduct, our Human Rights Policy.

Rights Policy at asml.com

155031139516417

Targets and performance

Amount invested in communities,

including employee giving (€/employee)

	€0
2024
2025		Not achieved<br>	2025 target: €2,500 €/employee
---	---

157779918630078

Based on an external benchmarking

exercise, focusing on the concept of giving

in numbers, we established the CPP target

of €2,500 per employee by 2025, allocated

as follows:

•Contribute €2,000 per employee to

CPP projects by 2025. This enables us to

scale our ambitions while reinforcing our

commitment to being a valued partner.

•Allocate €500 per employee to our

Employee giving program, with the aim

of supporting causes that matter most

to our employees.

These targets mobilize our CPP ambitions.

Over the last two years, we have grown our

CPP portfolio of projects, realizing major

contributions to sustainable mobility, affordable

housing, education, sports, arts and music,

access to employment and cultural integration

in communities surrounding our sites globally

– reflecting our commitment to creating

lasting positive impact where we operate.

€1,750

Total amount invested in

communities, including

employee giving in 2025

(€/employee)

Amount invested (/employee)	2024	2025
<	€257	€242
<	€189	€379
<	€177	€218
<	€299	€665
<	€162	€246

All values are in Euros.

1.Investment in ESG Innovation represents our

contributions to projects that aim to solve ESG

challenges facing society.

Innovation ecosystem

In 2025, we provided approximately €75.8

million (2024: €45.2 million) in cash and in-

kind CPP investments, including employee

giving, which equates to €1,750 per

employee. This comprises:

•Investment in CPP projects of €1,504

(2024: €922) per employee against our

target of €2,000 per employee by 2025.

With the absolute investment for the year

around €65.1 million (2024: €38.5 million).

•Investment in our Employee Giving

program of €246 (2024: €162) per

employee against our target of €500

per employee by 2025.

While our progress in CPP investments

and Employee Giving program has been

significant, it remains below our target of

€2,500 per employee by 2025.

Building internal capabilities and establishing

a robust, impactful portfolio requires time

and strong partnerships, therefore our target

will remain the same, but we now aim to

reach it by 2030: €2,000 per employee in

CPP projects and €500 per employee to the

Employee Giving program, forming an overall

target of €2,500 per employee. This

underscores our sustained commitment to

supporting and strengthening communities

worldwide while empowering our employees

to give back.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	254
General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing valued partner in our communities (continued)

Levers for action

Our Society & Community Engagement

(S&CE) team is dedicated to the execution

of our community investments and ensures

we remain on track to reach our ambitions.

Attractive communities

We contribute to improvements and positive

experiences in the community and mitigate

the negative impacts of our growth through

the following programs:

Affordable housing: We aim to mitigate

our impact on the local housing market

by working with housing corporations,

municipalities and real estate developers

to support new construction of affordable

housing for low-mid income residents.

We explore ways to reduce pressure on

the housing market without distorting it,

such as providing financial instruments that

aid new construction, better infrastructure

and new company policies.

Sustainable mobility: We aim to mitigate

our negative effects on mobility and promote

the use of sustainable mobility options by,

for example, participating in public-private

initiatives to create better ASML-specific

and community-wide mobility infrastructure.

We also enable and incentivize the use of

sustainable commuting by encouraging

shared mobility options and support biking-

safety improvements.

Cultural integration: We create connections

with our neighbors and support the integration

of international employees through local

community projects and initiatives. We are

improving local relationships by working

with stakeholders close to our factories

and offices to forge stronger bonds, and

actioning employee-integration projects –

including support networks and language

courses to help international colleagues

and their families settle into the local area

and culture. By encouraging employees to

take part in volunteering activities, we also

highlight the value internationals bring to

the local community.

Attractive sports, arts and music: In

building attractive communities, sports, arts

and music are key – but our presence may

have a disruption on existing local offerings.

In response, we are funding landmark events,

organizations and locations that are highly

valued by the community, and providing

funds to improve and expand the variety of

local sports, arts and music offerings. We’re

also offering upfront investment to improve

and support organizations, so they can grow

and thrive on their own.

Green communities: We aim to preserve

biodiversity, prevent deforestation and

enhance landscapes. Our measures include,

but are not limited to: financing investments

to reduce and/or decarbonize energy

use; developing biodiversity enhancement

projects; and improving the quality of green

spaces by contributing to – and helping to

maintain – facilities in and around them.

We monitor the effectiveness of our Attractive

communities programs through structural

community stakeholder feedback and by

tracking a set of pre-defined performance

indicators, such as the number of affordable

homes supported.

Inclusive communities

We tackle the barriers that hold

disadvantaged community members back

through the following program strategies:

Access to employment: We aim to

increase quality employment by reducing

the misalignment of skills and supporting

job-seekers to access and navigate the

labor market. We offer training, coaching

and guidance to help them gain more

relevant skills and find suitable jobs.

Equal opportunities for education:

We see education as ‘the great equalizer’,

regardless of whether students are across

the neurodiversity spectrum, have a

different native language or come from

disadvantaged backgrounds.

We aim to help children reach their potential

by enabling teachers and schools to meet

students’ individual needs – for example by

providing multilingual resources to support

language-neutral testing, and offering

specialized in-school support and coaching.

Our employees offer help with schoolwork

and other skills needed for successful learning,

and support children, parents and carers with

the guidance and perspective they need to

make education choices with confidence.

To bridge the gap between education and the

labor market, we provide financial support for

career progression and equal opportunities for

students from disadvantaged backgrounds.

We monitor the effectiveness of our inclusive

communities programs through structural

community stakeholder feedback and by

tracking pre-defined performance indicators

such as the number of schools supported.

Access to sports, arts and music:

We help make sports, arts and music more

accessible by reducing financial, practical

and accessibility barriers – helping clubs and

organizations offer free entry and supporting

them to address transport or logistical

issues. We also provide ongoing means to

sports and culture clubs, enabling them to

offer wider options for people with health

conditions or impairments.

Access to basic needs: To build attractive

and inclusive communities, everyone must

be able to participate – and that starts with

the essentials. We contribute to access

to basic needs including food, shelter,

clothes and vital healthcare – including

by providing support and volunteers for

local initiatives.

Investing in STEM education

We are helping to grow the STEM talent

pool needed to solve some of society’s key

challenges. Our program is designed to

stimulate STEM education at every level:

ASML Junior Academy and Experience

Center visits (age 4-12); teaching packages

and Night of the Nerds (age 12-18); and

collaboration with vocational, bachelor

and master’s programs (age 18-24).

We further invest in STEM education by

organizing events, guest lessons and visits

to ASML premises in Veldhoven. Our aim

is to spark children’s awareness, interest

and joy in STEM-related themes and

topics globally.

We monitor the effectiveness of our STEM

programs through structural stakeholder

feedback and by tracking pre-defined

performance indicators such as the number

of children reached.

ASML_Sustainability_Social_How-were-managing-valued-partner_Employee-Giving_Page-274_v5.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing valued partner in our communities (continued)

Process for engaging

Our engagement channels are publicly

available on our website, including local

phone numbers for all our locations, email

addresses and our external Speak Up

Service. Governed by our Speak Up and

Non-retaliation Policy, these channels

encourage community residents, or anyone

affected by ASML, to share their ideas and

concerns without fear of discrimination,

retaliation, intimidation or harassment.

Engaged stakeholders – Society

Insights from these channels shape our

entire approach to being a valued partner

in our communities. The Head of S&CE

is our most senior role responsible for

community engagement and driving impact

assessment, policy development, target-

setting and program development.

We use external surveys and stakeholder

feedback to assess the effectiveness of – and

trust in – our overall engagement strategies.

Those needing specific assistance can

apply through our local outreach program.

This gives us insights into groups that require

particular consideration within our approach

or specialized assistance through the

foundations we partner with. We aim to

support initiatives that promote inclusion

and create equal opportunities through

education, sports, arts and music, and

local outreach.

Process for remediation

We strive to listen to every concern we

receive, and take broader responsibility for

addressing our negative impacts on affected

communities. This applies to both our smaller

sites, where we are less significant in relation

to the size of the community, and larger sites

where we have a much higher profile.

Ultimately, we want to ensure our overall

impact is positive – and that we continue

to add value and minimize any potential

negative effects. We aim to contribute to

the community in a way that makes our

employees proud.

We aim to follow clear processes such that:

•Issues raised from all sources are followed

up and validated, preferably in person.

•During formal ‘participation meetings’,

all stakeholders investigate issues and

participate in potential solutions. Decisions

on solutions are made collaboratively

between ASML, local government and

our neighbors, and are formalized in

minutes of the meetings and made

public – in line with the new Dutch

legislation, ‘Omgevingswet’.

•Stakeholder meetings track progress

and monitor pre-defined KPIs, which

is recorded in the minutes.

•Issues are also closed in meetings and

recorded in the minutes.

Governance – ESG integrated governance –

Responsible business conduct and compliance

Employee Giving: Supporting causes close to the hearts of our employees

Even small acts can<br><br>make a big difference.<br><br>That’s why thousands<br><br>of ASML employees<br><br>volunteer their time<br><br>each year – making a<br><br>positive contribution<br><br>to their communities.

Through our global Employee Giving

program, we encourage our employees

to become involved in their local

communities by donating their time,

skills and resources to charitable

and non-profit organizations.

In 2025, ASML contributed a total of

€10.7 million in donations, volunteering

hours and facilitation costs.

Matching gifts

Our matching-gifts program, now in its

third full year, gives our employees a

voice in ASML’s philanthropic contributions.

For eligible employees globally, we match

donations to non-profit organizations up

to €10,000 per employee, per calendar

year. For the month of December 2025,

the limit was temporarily increased to

€25,000 to support our employees’

seasonal giving activities.

In 2025, we supported more than 2,600

(2024: 2,200) non-profit organizations

with ASML contribution toward donations

totaling €5.1 million (2024: €3.7 million).

Volunteering

Colleagues are also entitled to take eight

hours of volunteering time off per year,

contributing a total of 61,341 volunteering

hours in their communities this year (2024:

41,368). The total cost of volunteering –

part of employee giving – increased from

€3.1 million in 2024 to €5.6 million in 2025

(including facilitation costs).

Matching-gifts program
Over 2,600<br><br>non-profit<br><br>organizations<br><br>supported	€5.1 million total<br><br>contributed to<br><br>donations<br><br>in 2025

Special campaigns

In April 2025 – our Global Volunteer Month –

we hosted over 100 volunteer events across

our sites worldwide. Employees contributed

more than 7,200 hours to charities and non-

profits in our local communities – cleaning

beaches, planting trees, building STEM kits

for students, supporting older adults and

volunteering at food banks.

These many small acts amounted to a big

impact for communities. We also ran two

double matching campaigns in 2025 to

amplify the impact of employee giving. For

a limited-time, we contributed €2 for every

€1 donated by an employee – tripling the

total impact. The Summer of Giving

campaign, aligned with Global Well-being

Month, featured storytelling sessions from

non-profit partners to deepen engagement.

Giving Tuesday in December closed the

year with a similar double-match incentive,

encouraging reflection and generosity

during the holiday season. Both campaigns

were promoted through ASML’s Employee

Giving platform, supported by internal

communication and leadership engagement

to maximize participation.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Attractive communities

| Our objective | | --- || We aim to enhance the overall quality of life in the communities in which we operate. We strive to help create vibrant, resilient communities where people want to live, work, and thrive. | | --- || Our scope | | --- |

Our scope is local affected communities,

surrounding our main locations.

In contributing to attractive communities,

we focus on:

•Affordable housing

•Sustainable mobility

•Cultural integration

•Attractive sports, arts and music

•Green communities

Targets and performance

Amount invested into creating attractive

communities (€/employee)

	€0	€50	€100	€150	€200	€250	€300
2024
2025
				2025 target: N/A

156680407091514

Of our total CPP investment, we invested

€10.5 million (2024: €10.7 million) in programs

focused on creating attractive communities in

2025, representing €242 per employee. While

no stand-alone target is set for attractive

community initiatives, these investments are

reflected in the performance against our

overarching CPP target of €2,000 per employee

by 2025. Although we did not reach our

overall target by 2025, we remain committed

to our attractive community ambitions. To

support this effort, the current overarching

target of €2,000 per employee will remain the

same, but we now aim to reach it by 2030.

Our actions and resources

Our presence strongly contributes to creating

an attractive community through contributing

to local economies and job creation. Through

our efforts to remain authentic and local,

our accelerated growth has created pressure

on the local infrastructure and offerings.

We continue to invest back into our local

communities to not only mitigate the negative

impact of our growth but ever further contribute

to improvements and positive experiences.

Contributing to affordable housing for

local residents

Working with private and (semi-) public

partners, we support the construction of

rent-controlled, affordable housing in the

Brainport Eindhoven region of the Netherlands

for the benefit of local residents (non-ASML

employees). Key projects include:

•Springplank: 130 affordable homes,

previously expected to be delivered in

2025, are now expected in 2026 due to

revised construction timelines.

•TAC: 249 affordable homes expected

by 2026.

•Zuidrand: 104 affordable homes expected

by 2026.

•Djept: 237 affordable homes (out of 305

in total) currently expected by 2027.

•Sierlijke Dames: at least 194 affordable

homes (out of 276) in total expected

by 2029.

•Humperdincklaan: at least 372 affordable

homes (out of 400 in total) expected

by 2030.

Without ASML’s support, these projects

would not move forward. We aim to support

in a manner that avoids distorting the market,

either by contributing a pre-agreed amount

upon completion, or a de-risking construction

by committing to cover potential losses at the

end of the project, one challenge lies in

identifying such projects. However, where

agreed in certain cases, and where the gross

profit margin on a project exceeds a certain

threshold, (a portion of the) surplus profit will

be donated to the Brainport Eindhoven

Partners Foundation.

We expect 483 affordable homes to be

built and delivered to local residents with

low-mid incomes in the region in 2026.

In 2025, we committed to support the

Beethoven Affordable Housing Fund, a

€245 million private-public partnership

over 10 years. We aim to contribute 25%

(€61.3 million) alongside 25% from local

municipalities and 50% from central

government. The fund will support the

development of 17,000 homes and 2,280

student homes, most of which will be

affordable. The first homes are expected in

2028, marking significant progress toward

our ambition of enabling 25,000 affordable

homes in the Brainport Eindhoven region

by 2040.

Investing in sustainable mobility

We pledged our support to co-finance key

infrastructure upgrades in the Brainport

Eindhoven region through two public-private

partnerships focused on accessibility, safety

and sustainable mobility. Investments include

improvements in the central bus and railway

station, as well as bus and bicycle lanes.

The total investment of the partnerships is

expected to reach €2.5 billion over 10-15

years, with contributions from the Dutch

government, the province and local

municipalities, and private-sector partners

including ASML. This infrastructure

partnership complements the Dutch

government’s ‘Beethoven project’,

supporting smarter, safer and more

accessible mobility across the region.

Encouraging social cohesion and cultural

integration

Our growth has a high impact on social

cohesion in the Brainport Eindhoven community.

We take responsibility for encouraging

connections between cultures, bringing

together local and international members of

the community to help create social cohesion

in the region. Such activities include:

ASML x Brabant C

We are investing around €2 million in the

ASML x Brabant C cultural partnership to

enhance and diversify the region’s cultural

scene. The collaboration supports initiatives

that everyone can enjoy, including the

Storioni Festival, Stichting Wildpark, Crafts

Film Festival, Next Nature Networks and

Dutch Silent Film Festival.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Attractive communities (continued)

Buddy system for internationals

Working with local partner Cordaad Welzijn,

we are helping create more connections

between locals and internationals. In 2025,

this initiative linked close to 200 international

families, including nearly 60 ASML employees,

with local ‘buddies’ who help them integrate

and answer their day-to-day questions.

Bringing people together through sports,

arts and music

We support a wide range of initiatives that

bring people together in their love for sports,

arts and music. These include, but are not

limited to:

•Hosting ASML Summer Games (ASML

Zomerspelen): In 2025, over 1,700 (2024:

1,200) children and teenagers participated

in the ASML Summer Games, organized

with BrabantSport and local partners. The

initiative offered free sports clinics, sports

gear to local children, focusing on families

with limited resources and children with

care needs – and our partners helped

connect families to ongoing support.

•Sponsoring ASML Marathon Eindhoven,

we cover the entry costs for all employees

and 455 (2024: 500) local residents with

limited resources. In 2025, over 36,800

runners took part (2024: 38,000), including

over 3,800 (2024: 3,300) ASML employees.

•Collaborating with PSV Eindhoven

football club in providing match access

via the ASML Community Lounge to

thousands of underserved local residents.

•Partnering with the Van Gogh Museum,

Nuenen, to make entry free for all children

under 18.

•Collaborating with GLOW Light Art

Festival in showcasing light art across

the city. In 2025, GLOW drew around

one million (2024: 750,000) visitors.

•Partnering with Theater de Schalm,

Veldhoven, to enable free youth

performances for children up to age

12 and supporting year-round cultural

programming to strengthen

community ties.

•Partnering with Effenaar music venue,

Eindhoven. The annual Hit The City festival

brings popular international artists to

Eindhoven, featuring over 86 acts and

attracting around 41,500 (2024:

31,500) people.

•Partnering with Muziekgebouw

Eindhoven in support of cultural

programming and community access,

including the annual ASML on Stage

event where employees perform.

Contributing to green communities

We continued to contribute toward

decarbonizing energy use and investing

in nature. In 2025, one such initiative was

De Wielewaal, where we partnered with

Natuurmonumenten to help transform a

142-hectare former private estate in

Eindhoven, with cultural and historical

significance, into a public green space

with a nature center for visitors.

Other ongoing initiatives include:

•Partnering with Trees for all to plant

455,000 trees in the Brainport Eindhoven

region over three years (2024–2026).

•Partnering with the Ambler Farm, Wilton

(US), to support redevelopment and provide

environmental education to around 15,000

local young people by 2027.

•Partnering with Good Rice Circle

(Taiwan) to support sustainable farming

and environmental conservation through

our Employee Giving program.

Resources

We dedicated 25 FTEs to our S&CE team to

coordinating and tracking our CCP activities.

This excludes hours spent by supporting

teams such as investments, legal, accounting,

tax and treasury required to execute on

these activities. Financial resources committed

to attractive community projects are tracked

and reported under Targets and performance.

Looking ahead

In 2026, we will continue executing our

existing initiatives and develop new attractive

community projects, in particular we aim to

support the expansion of the Rijksmuseum

to Eindhoven as a founding partner. This new

cultural landmark, is expected to be completed

in six to eight years in collaboration with the

Rijksmuseum and Municipality of Eindhoven.

251012154400-EM2025-BOY HOOGVORST-5779-RGB.jpg

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General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Inclusive communities

| Our objective | | --- || We aim to foster communities that offer equal opportunities for all. We strive to help remove barriers and create environments where everyone can participate fully. | | --- || | €0 | €75 | €150 | €225 | €300 | €375 | €450 | | --- | --- | --- | --- | --- | --- | --- | --- | | 2024 | | | | | | | | | 2025 | | | | | | | | | | | | | | 2025 target: N/A | | || Our scope | | --- |

Our scope is local affected communities,

surrounding our main locations.

In contributing to inclusive communities,

we focus on:

•Employment

•Equal opportunities for education

•Sports, arts and music

•Basic needs

Targets and performance

Amount invested into creating inclusive

communities (€/employee)

157230162886507

Of our total CPP investment, in 2025 we

invested €16.4 million (2024: €7.9 million)

in programs focused on creating inclusive

communities, representing €379 per employee.

While no stand-alone target is set for inclusive

community initiatives, these investments are

reflected in the performance against our

overarching CPP target of €2,000 per employee

by 2025. Although we did not reach our

overall target by 2025, we remain committed

to our inclusive community ambitions. To

support this effort, the current overarching

target of €2,000 per employee will remain the

same, but we now aim to reach it by 2030.

Our actions and resources

Improving access to employment

Our growth has resulted in a significant

increase in both direct and indirect employment

opportunities, and a substantial increase in

higher-earning professionals in the Brainport

Eindhoven region – which is widening the

welfare gap. We are actively working on

reducing this disparity by correcting the

misalignment of skills required for employment

and providing support to navigate and

succeed in the labor market.

Our activities include:

•Brace program: We contribute to a

three-year initiative (2024–2026) with the

BuzinezzClub Foundation (BCF), a charity

offering free multi-year career coaching

that helps people succeed in the Dutch

labor market. The initiative aims to support

3,500 vulnerable young people and

migrants to make better career choices

and develop the skills and network they

need for success. We expect 60%

(2,100) to secure a job, education or

entrepreneurial opportunity. By the end

of 2025, more than 850 individuals had

been supported by the program.

•Labor Participation Boost program: A nine-

month initiative (2024-2025) in partnership

with Taalkracht, a non-profit organization

specializing in strengthening adults’

language skills. Language can be a major

barrier to finding vacancies, applying for

jobs and being considered eligible for

many roles. By the end of the program,

we reached our ambition to support 800

migrants to improve their Dutch language

skills, and to guide 25% of them into work

or further education.

Promoting inclusive education

Our inclusive education program builds

confidence, enhances skills, and supports

the integration of the increasing number of

international, neurodiverse students and

underserved children into the Brainport

Eindhoven region schooling system. We

co-develop and co-fund the following

actives in 2025:

•@home in languages project: Supporting

teacher training and a multilingual

education expertise center that aims to

make multilingual books available to

international students (0-12-year-olds) in

over 100 schools, libraries and childcare

facilities in the region. 106 locations (2024:

48) have been reached so far.

•International teaching academy: Supporting

international students (12-18-year-olds)

and strengthening teacher skills by placing

international coordinators in schools,

providing training for teachers and

encouraging collaboration across key

educational institutes.

• Inclusive education support program:

Supporting teachers and parents of

neurodiverse and multilingual children

in the Brainport Eindhoven region. This

includes training and workshops for

over 750 (2024: 1,000) educators and

international parents, recruitment of

72 (2024: 45) educational psychologists

covering 31 languages (2024: 25), and

guidance for international parents with

questions about education and childcare.

•Weekend and after-school programs:

Supporting students (10-year-olds

and over) from disadvantaged

backgrounds, helping build confidence,

skills and networks with Sunday and

after-school sessions.

Other ongoing activities in the US include:

•Our partnership with the Boys & Girls

Clubs of Silicon Valley, offering lower-

income students access to sports, arts

and wellness-focused camps – along with

leadership, job readiness and financial

literacy training.

•Our partnership with Ocean Discovery

Institute (ODI), a San Diego non-profit

creating equitable opportunities for

students from disadvantaged backgrounds

– transforming their lives through science.

education initiatives at asml.com

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General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Inclusive communities (continued)

Making sports, arts and music more

accessible

We aim to make sports, arts and music more

accessible to everyone by reducing financial,

practical and accessibility barriers.

One such activity is ASML School Football

Tournament (NL). In collaboration with the FC

Eindhoven Foundation, we host a free school

football tournament for all primary and

secondary schools in Brainport Eindhoven

region. In 2025, the program expanded to

reach a total of 504 teams (2024: 335) with

more than 4,032 participants (2024: 3,000)

competing from across the region.

Contributing to access to basic needs

Having access to basic needs including

food, shelter, clothes and vital healthcare is

essential to enabling everyone to participate

in society. We have several ongoing activities

that support this, including:

•Supporting several food banks in the US,

including Second Harvest of Silicon Valley,

San Diego Food Bank and the Food Bank

of Lower Fairfield County.

•Supporting the Senior Nutrition Program

with a grant enabling them to deliver

611,000 meals to homebound, low-income

seniors in San Diego County.

•Supporting The Digital Humanitarian

Association, which uses technology to

assist elderly individuals in remote areas

of Taiwan who are at risk of illness

and disability.

•Sponsoring access to the SeriousFun

Children’s Network, which delivers life-

changing, cost-free camp experiences to

children from southern Connecticut and

New York with serious medical conditions.

We have funded 26 ‘camperships’ and

653 hospital outreach visits so far.

Resources

We dedicated 25 FTEs to our S&CE team to

coordinating and tracking our CCP activities.

This excludes hours spent by supporting

teams such as investments, legal,

accounting, tax and treasury required to

execute on these activities. Financial

resources committed to inclusive community

projects are tracked and reported under

Targets and performance.

Looking ahead

In 2026 and beyond, together with local

partners and experts, we continue to

execute, scale and develop projects to

create inclusive communities, with focus

on disadvantaged members and families in

the community, neurodivergent children

and international children.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	260
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Investing in STEM education

| Our objective | | --- || We aim to boost STEM education for children by supporting initiatives that build skills for their future and help expand the STEM talent pool needed by society. | | --- || Our scope | | --- |

Our scope is our local communities,

surrounding our main locations, namely in

The Netherlands, the US and Taiwan.

Targets and performance

Amount invested for STEM education

(€/employee)

	0	50	100	150	200	250	300
2024
2025
				2025 target: N/A

111050674444424

Of our total CPP investment, we invested

€9.4 million (2024: €7.4 million) in STEM

education in 2025, representing €218 per

employee. While no stand-alone target is

set for STEM education, these investments

are reflected in the performance against

our overarching CPP target of

€2,000

per

employee by 2025. Although we did not

reach our overall target by 2025, we remain

committed to investing in STEM education.

To support this effort, the current overarching

target of €2,000 per employee will remain the

same, but we now aim to reach it by 2030.

In 2025, we reached over 176,000 children

within a 35 km radius of Veldhoven (the

Netherlands), Wilton (US) and Taiwan, falling

short of our ambition of 200,000. Our aim is

to stimulate STEM education and create a

new generation of talent that can drive future

innovation – not only within ASML but in the

local and regional communities we work in.

Our actions and resources

Inspiring children to choose STEM

Considering the limited access to STEM

talent, we believe early STEM awareness can

spark a lifelong interest, inspiring people to

consider STEM-related education options and

careers later in life. We aim to make STEM

education more engaging and accessible,

showcasing attractive job prospects and role

models. We also strengthen infrastructure

and collaboration by investing in STEM

projects, events, guest lessons at schools

and visits to ASML premises in Veldhoven.

In 2025, we have experienced significant

growth in the number of children reached

through STEM education – particularly

evident with this year’s expansion of the

ASML Junior Academy, which has now

reached more than 146,000 (2024: 90,000)

children globally.

The Netherlands

The Junior Academy brings engaging and

structural STEM lessons to all primary school

children (ages 4–12) six times per school year

for at least three school years, fully funded by

ASML in partnership with Mad Science.

In 2025, we continued to support local STEM

activities such as the High Tech Discovery

Tour, Night of the Nerds, Tech Fundays and

the Crafted Festival for pre-vocational,

secondary and vocational education.

We offer our STEMup program to students

in their first and second year of secondary

school in the Veldhoven region. Working with

a STEM coach, schools can choose one of

four classes designed to make STEM more

engaging by connecting it to society.

We continue to support the FIRST Lego

League and FIRST Tech Challenge, enabling

organizers to expand their competitions and

build on these robotics challenges.

We have scaled-up our support for STEM

programs at local Boys & Girls Clubs. The

Boys & Girls Clubs of Silicon Valley’s SciTech

program reached 6,154 (2024: 4,627)

students across 40 (2024: 33) after-school

locations by the end of 2025. In Bridgeport,

Connecticut, we funded materials for the

Madison Avenue Clubhouse’s STEM Lab

and Makerspace benefiting local young

people. In San Diego, we supported weekly

STEM modules, staff training, STEM-related

summer field trips and computer lab

upgrades at nine clubhouses.

We have invested $2.2 million over three

years in the Junior Academy in partnership

with Mad Science – providing free interactive

technology education lessons to children

(ages 4–12) in Wilton and surrounding

communities. This initiative aims to reach

over 13,000 children each year – and, at the

end of 2025, had onboarded 50 schools

(2024: 30 schools ) in Fairfield County,

reaching 13,500 students (2024: 8,281

students). Employee engagement with

the program has been strong, with 110

(2024: 114) employees trained by Mad

Science and 28 (2024: 32) employees

actively participating in teaching lessons.

We also supported access programs

and STEM programming at the Children’s

Museum of Phoenix and San Diego

Children’s Discovery Museum in 2025.

Taiwan

In 2025, we kicked off a project in

collaboration with Taiwan’s National Science

Natural Museum and Learning in Science, a

Taiwan-based science education non-profit,

to create an interactive STEM gallery and

learning experience for students ages 4-12.

In addition to content and curriculum

development, this project will train teachers

and provide Taiwanese educators with

essential STEM teaching strategies and

practical tools to ignite curiosity and inspire

discovery. This project aims to reach more

than 100,000 students in three years.

Resources

We dedicated 25 FTEs to our S&CE team to

coordinating and tracking our CCP activities.

This excludes hours spent by supporting

teams needed to execute on these activities.

Financial resources committed to STEM

education projects are tracked and reported

under Targets and performance.

Looking ahead

In 2026, we will continue to scale our STEM

projects to spark curiosity and enable

education in areas of STEM.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	261
General disclosures	Environmental	Social	Governance
---	---	---	---

Governance at a glance

ESG integrated governance
We aim to integrate sustainability in our<br><br>day-to-day operations, to help us deliver<br><br>on our ESG sustainability mission<br><br>and responsibilities.<br><br>We aim to make ESG part of all regular,<br><br>day-to-day decision-making.
Read more on page 262 ><br><br>We’ll do this by focusing on:<br><br>•Purpose, vision, mission and values<br><br>•Strategy and business priorities<br><br>•Organization, processes and governance<br><br>•ESG risk management<br><br>•Responsible business conduct and<br><br>compliance (covered in this section)		Our ambition
---
We aim to act on our<br><br>responsibilities and<br><br>anchor them across<br><br>our entire business<br><br>through integrated<br><br>governance, engaged<br><br>stakeholders and<br><br>transparent reporting.
On the following pages, we set out<br><br>our approach and progress to date.		Transparent reporting
---
We aim to be open and transparent,<br><br>driving progress while building trust with<br><br>our stakeholders through our commitment<br><br>to integrated reporting. We believe that<br><br>our ESG-related information is as<br><br>important as our financial information.
We aim for ‘best-in-class’ reporting,<br><br>according to our stakeholders.<br><br>We’ll do this by focusing on:<br><br>•Internal reporting and communications<br><br>•External reporting and communications<br><br>Read more on our policies and additional<br><br>disclosures at asml.com, such as our:<br><br>•Tax report<br><br>•Government & External Affairs report<br><br>•Group Diversity and Inclusion Policy<br><br>•Stakeholder Engagement Policy<br><br>•Speak Up & Non-retaliation Policy

Engaged stakeholders
	We depend on building strong, sustainable<br><br>relationships with all of our stakeholders<br><br>across the value chain.<br><br>We aim to be viewed as a top<br><br>performer on ESG sustainability by<br><br>our stakeholders.<br><br>Read more in Strategic report – Our business –<br><br>Engaged stakeholders	We’ll do this by engaging with the<br><br>following stakeholder groups:
		•Customers<br><br>•Employees<br><br>•Suppliers<br><br>•Shareholders<br><br>•Society

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	262
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance

We aim to make ESG part of all regular, day-to-day decision-making

Why it matters

...for the planet
Sustainability matters to stakeholders up and down our value chain.<br><br>Together we are building a shared understanding of the importance of<br><br>ESG-driven thinking. Integrity, honesty and transparency about the economic,<br><br>environmental and social impact of our activities guide our entire ESG<br><br>approach, influencing the decisions we make and the performance<br><br>information we share.<br><br>To create long-term value for our stakeholders, we need to build strong<br><br>relationships with them and support those that are more vulnerable. We<br><br>must also ensure compliance with data privacy regulations and encourage<br><br>greater political engagement on ESG topics.		...for ASML
---
We aim to act on our responsibilities and anchor ESG sustainability across<br><br>our entire business. We believe robust integrated governance policies, and<br><br>an ongoing commitment to responsible business conduct and risk<br><br>management, are essential.<br><br>Ethics and compliance are the foundations of our sustainability strategy.<br><br>We aim to create a fair, transparent and inclusive culture – where everyone<br><br>feels empowered to speak up about the changes needed to make our<br><br>sustainability transition a success.<br><br>Our approach keeps customers, suppliers and shareholders well informed,<br><br>enabling them to make their own business decisions with confidence. Having<br><br>their trust and collaboration is important in shaping our wider ESG strategy.		Key
---	---
	On track / achieved
	Off track / not achieved		Our 2025 progress
---	---
Number of convictions for<br><br>violation of anti-corruption<br><br>and anti-bribery laws	Employees completing<br><br>the Code of Conduct<br><br>training course
0	94%
2024: 0	2024: 97%
2025 target: N/A	2025 target: N/A
Employees understanding<br><br>the main principles of our<br><br>Code of Conduct and how<br><br>to follow them	Number of severe human<br><br>rights incidents
96%	0
2024: —	2024: 0
2025 target: N/A	2025 target: N/A

Our sub-topics

Responsible business<br><br>conduct and compliance

ASML_Sustainability_Governance_ESG-Integrated-Governance_v7.jpg

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	263
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance (continued)

Key
	Actual positive impact	Risk
	Potential positive impact	Opportunity
	Actual negative impact
	Potential negative impact

Our material impacts, risks and opportunities relating to ESG integrated governance

Upstream	Community
	Own<br><br>operations		Whole value chain
---	---
	Failure to comply with<br><br>data privacy regulations<br><br>or breaches of data<br><br>privacy (Responsible<br><br>business conduct and<br><br>compliance)
	Failure to engage<br><br>customers and suppliers<br><br>on environmental and<br><br>social topics (ESG risk<br><br>management)		Impact on people and environment across the supply chain through the fair<br><br>management of relationships with suppliers (Responsible business conduct<br><br>and compliance)
---
Failure to comply with laws and regulations for supply chain due diligence<br><br>(Responsible business conduct and compliance)
Potential impact on stakeholders and associated risk in case ASML workers fail to comply with ASML’s<br><br>code of conduct, policies and values, as well as with regulations due to increasing complexity as we<br><br>expand into more countries (Responsible business conduct and compliance)
---
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	264
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing ESG integrated governance

Our approach

Our ESG sustainability commitments are

integral to our business strategy. Championing

good integrated corporate governance helps

build trust, respect and mutual benefit with

our stakeholders – and we aim to do this by

making ESG sustainability part of our daily

decision-making.

We strive to uphold the highest standards

of integrity and continuously improve our

governance by listening to feedback from all

stakeholders. At the same time, we always

seek to amplify the core values, purpose,

vision and mission that make ASML the

company it is today.

This helps create a corporate culture that

facilitates mutual respect, where people

feel valued – with space for creative ideas

and unique points of view. Our values of

‘challenge’, ‘collaborate’ and ‘care’ help

our employees develop their talent in a safe,

inclusive environment. Feeling respected and

able to thrive, they are free to make smart

decisions. By embedding ESG sustainability

in our business, we aim to create lasting

value for all stakeholders.

Our integrated governance includes five sub-

topics that we focus on to fully integrate

ESG sustainability:

•Purpose, vision, mission and values

•Strategy and business priorities

•Organization, processes and governance

•ESG risk management

•Responsible business conduct and

compliance

business strategy – Deliver on ESG sustainability

and in Sustainability Statements – General

disclosures – ESG sustainability governance

Responsible business conduct

and compliance

We are committed to conducting business

with fairness and integrity, respecting the

law in all the countries we operate in. We

promote and uphold ethical behavior,

fostering a culture where speaking up is

appreciated and encouraged.

We also seek to continuously improve

and professionalize our ethics and related

compliance organization to the highest

standards. We expect employees – as well

as customers, suppliers, contractors and

other business partners – to adhere to our

Code of Conduct and its supporting policies.

These include, but are not limited to, policies

covering Speak Up and Non-retaliation, Anti-

Bribery and Anti-Corruption, Human Rights,

Privacy, Responsible AI, Anti-Fraud, Export

Control & Sanctions, and Competition

law compliance.

For this material topic, we have identified

material impacts, risks and opportunities

related to:

•Business ethics

•Code of conduct

•Fair management of relationships

with suppliers

•Grievance mechanism

•Data privacy

•Anti-bribery and anti-corruption

Our ethics and compliance function operates

enterprise-wide and is not limited to the

ESG domain.

and its supporting policies at asml.com

Engaged stakeholders

ASML’s ambition is to be seen as a top performer in ESG sustainability by its stakeholders. Stakeholder engagement plays an integral role in identifying our material topics. Target development for the ESG sustainability strategy is done in close collaboration between our ESG sustainability team and other parts of the organization. Inputs from relevant internal and external stakeholders are taken into consideration throughout this process. Our stakeholder engagement policy is part of our overall ESG sustainability policy and outlines how we connect with five key groups – customers, employees, shareholders, suppliers and society – through listening, raising awareness and aligning on shared goals. This engagement is essential for identifying material ESG topics and shaping our sustainability strategy. Read more about our policies and additional disclosures, including our Tax report, Disclosure Policy Bilateral Contacts with Shareholders, Stakeholder Engagement Policy and our public Competition Law Compliance Policy at asml.com

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	265
General disclosures	Environmental	Social	Governance
---	---	---	---

How we are managing ESG integrated governance (continued)

Levers for action

We have ambitious sustainability targets.

To meet them, we will need to fully integrate

sustainability across all our operations.

This means improving our existing

governance strategies to further reflect ESG

in our purpose, vision, mission and values,

our strategy and business priorities, our

organization, processes and governance,

our risk management, and our approach

to responsible business conduct

and compliance.

In order to achieve this integration we have

identified the following levers:

1. Embedding ESG in our policies

and principles

We have developed various ESG policies

setting out our commitments, principles

and requirements that help integrate ESG

into day-to-day decision-making. Our

expectations toward employees and partners

are further documented in additional policies,

which provide guidance as to how we aim

to conduct business in a responsible and

compliant manner.

Our policies are periodically reviewed and

updated based on stakeholder engagement

or other internal and external factors. To

support their implementation, we make

all policies available to stakeholders in

a tailored way.

We have a dedicated ethics, business

integrity and compliance program that

supports our employees and stakeholders.

It provides guidance, advice, training and

communication to understand and follow

our Code of Conduct. We build awareness

through various communication channels

to promote integrity across the organization,

helping create an open and honest culture

that fosters compliance with the law and

our policies.

Our grievance mechanism is designed to

help us conduct business in a responsible

manner. Our Speak Up whistleblowing service

is designed to be available for everyone who

works for or with us worldwide. We encourage

employees, external business partners,

suppliers, contractors and others to express

any concerns they may have regarding

possible violations of our Code of Conduct,

company policies, values or the law itself.

We want everyone to feel safe to speak up

without apprehension or fear of reprisal, and

do not tolerate any form of retaliation against

employees or third parties who raise concerns

in good faith. This also applies to anyone

participating in investigations into suspected

violations, even if we could lose business

as a result.

Speak Up is hosted online in several

different languages by an independent,

external service company, and toll-free

phone numbers are available in every

country we operate in. We have a dedicated

email address and a network of ethics

liaisons to support people worldwide.

Reporting can be done anonymously.

We assess every Speak Up report and

act swiftly to ensure all necessary actions

are taken by the appropriate body. We

may engage with the reporting party or

counterparty to understand the situation

better, sometimes digging deeper with more

detailed analyses or investigations. When

required, we implement remedial actions to

prevent further incidents.

We continuously improve our Speak Up

Service, to ensure everyone feels safe and

supported when reporting concerns.

Policy at asml.com

2. Training programs

We are committed to equipping our

employees with the knowledge, expertise,

skills, and competencies needed to uphold

our responsible business conduct principles

and comply with our Code of Conduct and

related ethics programs. To support this, we

offer a range of regularly updated training

programs. All employees receive Code of

Conduct training to ensure they understand

how to apply it in their daily work. In addition,

we provide quarterly follow-up modules

covering key topics such as Speak Up, Anti-

Bribery and Anti-Corruption, Anti-Fraud,

Insider Trading, and ‘We respect people’.

Our ethics program curriculum helps

support management and employees in

their everyday decision-making. It provides

guidance on topics such as conflicts of

interest, personal relationships at work,

cultural differences, and the ethics around

any paid or unpaid activities outside their

jobs at ASML. We invite all new employees to

complete the first module of the curriculum

within their first three months at ASML.

As well as generic modules, we have

sections targeting audiences with specific

exposure to areas that are key to our Code –

such as anti-bribery and anti-corruption, gifts

and entertainment, and respect for people.

We assess these target audiences at least

once a year. They include: the Board of

Management, Customer Solutions and

Support, Strategic Sourcing and Procurement,

Risk and Business Assurance, Finance,

Investor Relations, Legal and Compliance,

Corporate Real Estate, Human Resources,

Internal Audit and Society, and Community

Engagement. Our curriculum for anti-fraud,

anti-bribery and anti-corruption includes a

mandatory e-learning course and yearly

refreshers, supported by additional

classroom training tailored to specific

stakeholder groups or business activities.

We proactively measure how well our values

are embedded across ASML, and use our

annual employee engagement survey to gain

further insights.

3. Specific roles and responsibilities

Our business ethics governance model is

built around the following roles and

responsibilities:

•The Compliance, Ethics, Security and

Risk Committee (CESR) is responsible

for policymaking and supervises our legal

and ethical compliance. It receives

quarterly updates on our ethics program.

•Our CESR Ethics subcommittee

investigates significant notifications of

potential breaches of our Code of

Conduct worldwide.

•Our Ethics and Business Integrity team

oversees and implements our Ethics

program. Team members screen all

reports of possible breaches of our Code

of Conduct and discuss significant reports

with the CESR Ethics Committee.

•Our Ethics organization includes

employees who act as ethics liaisons in

the countries where we operate. They

serve as local, trusted representatives

and are the first point of contact for

employees with questions or concerns.

disclosures – ESG sustainability governance

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	266
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Responsible business conduct and compliance

| Our objective | | --- || We aim to uphold ethical business practices by embedding fairness, integrity, and compliance in our operations. We maintain zero tolerance for bribery and corruption. | | --- || Our scope | | --- |

Responsible business conduct and

compliance, as outlined in our Code of

Conduct, applies globally - across all

employees and business relationships

throughout our operations and value chain,

in every country where we operate.

Targets and performance

Currently, we have not set formal targets

for responsible business conduct

and compliance.

Business ethics and our Code of Conduct

We keep our Code of Conduct updated with

the latest RBA standards. Training materials

are available for all employees and we track

participation closely. We are constantly

enhancing our programs and strengthening

our measures, as we aim to demonstrate our

commitment to ethical business practices

and the highest standards of fairness,

integrity and compliance. By the end of

202

5, 94% of employees (2024:

97%

)

had completed the Code of Conduct

training course.

Furthermore, we track and assess our

employee’s perspective on business ethics

through a, fully revised, annual ethics survey.

In 2025, over 9600 colleagues shared their

thoughts on ethics and speaking up within

ASML. 96% of them report to understand the

main principles of our Code of Conduct and

how to follow them.

Fair management of relationships

with suppliers

We build supplier relationships on clear

expectations for ethical conduct, as outlined

in our Code of Conduct. Our Supplier

Payment Terms Policy sets a standard

payment term of 60 days, with shorter

terms for specific industries, helping

prevent late payments.

Supplier selection is informed by a range of

factors, including capabilities that contribute

227598906949685

to supplier risk profiles. While environmental

and social criteria are not yet formal selection

requirements, we do ask suppliers to self-

assess each year on key capabilities,

including a commitment to GHG neutrality

by 2030. Our Supplier Handbook sets out

our sustainability expectations, reflecting

the growing importance of ESG legislation.

It outlines how suppliers are expected to

manage risks related to environmental impact

and human rights, and encourages them to

actively build their ESG capabilities. Supplier

contracts that we enter into include a clause

requiring adherence to the RBA Code of

Conduct, and we provide education to

suppliers to support understanding and

implementation of this.

Read more in Sustainability statements – Social –

Responsible value chain – Responsible supply chain

Grievance mechanism (Speak Up)

During 2025, we received 756 reports (2024:

727), up by 29 on last year, covering a range

of topics. Our workforce is growing and

we are encouraging people to report any

concerns, so this increase is a positive result

signaling a healthy Speak Up culture. The

number of reports per 100 employees is

1.7 (2024: 1.7). All reports were assessed,

investigated and appropriately followed up,

including all potential fraud related reports.

None of the reports were determined to be

financially material.

Read more in our Speak Up and Non-retaliation

Policy at asml.com

Speak Up reports received in 2025

756 Total

<	Out of Ethics scope	24%
<	Inappropriate communication	14%
<	Fraud and operational integrity	9%
<	HR-related concerns	8%
<	Harassment	6%
<	Power and influence abuse	6%
<	Other	6%
<	Conflict of interests	5%
<	Discrimination and inclusion	5%
<	Asset protection	5%
<	Health, safety and physical violence	4%
<	Gifts and entertainment	4%
<	Bullying	4%

Privacy

We respect the privacy of individuals when

processing their personal data, and protect

and manage it in line with our Privacy Program.

We aim to ensure compliance with all

applicable laws and regulations.

We use various approaches, processes and

tools to manage privacy matters responsibly.

Our global Privacy Policy is an essential

building block in complying with legislation

relating to the processing of personal data.

We regularly review our privacy processes

and our strategic objectives are captured in

an annual plan that serves as our roadmap

in further enhancing our Privacy Program.

Furthermore, we have three separate

Privacy Notices for our employees, business

partners and visitors, and job applicants –

each describing how we collect, use, retain

and disclose personal data, and for

which purposes.

Anti-bribery and anti-corruption

Our guiding principle is to operate with integrity

at all times and never engage in bribery or

corruption. There have been no convictions

or fines against us or our employees in these

areas in the reporting year.

Through dedicated e-learning and classroom

training sessions, we aim to help employees

recognize and respond to potential fraud,

bribery and corruption matters they may be

confronted with during their work. These

include guidance on gifts and entertainment

and conflicts of interest, and are mandatory

for selected employees.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	267
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Business ethics and compliance (continued)

In 2025, 98% of these employees

completed the training. We also provide

training to selected business partners who

may pose or face higher risks of fraud,

bribery and corruption – reiterating our

compliance framework, offering guidance

and tools to recognize and resist fraud,

bribery and corruption, and encouraging

speaking up.

Our actions and resources

Promoting ethical behavior and improving

training programs

In 2025, we strengthened ownership of

ethical leadership by shaping our processes,

elevating team capabilities, and refreshing

our Speak Up and human rights frameworks.

We have extended our ethics training curriculum

and now provide additional training for our

network of ethics liaisons, as well as refreshers

for all employees. We revamped online

training for people managers to incorporate

updated regulation, societal developments,

and peer benchmarking – enhancing

awareness and strengthening responsible

leadership across the organization.

Maturing our global Ethics and Business

Integrity team

In 2025, we further professionalized our

global Ethics and Business Integrity team.

Ethics liaisons at ASML are employees who,

alongside their regular roles, act as trusted

representatives – the first local point of

contact for ethics-related questions and

concerns everywhere we operate.

Our network of ethics liaisons consists of

approximately 70 employees. We introduced

tailored sessions to help them understand the

importance of enacting, upholding and

embodying our updated Code of Conduct.

We use an external company to conduct

annual mandatory training for liaisons, to

enable them to adhere to best practices.

Our Legal & Compliance and Risk & Business

Assurance teams continuously monitor

regulatory developments and business

activities. In 2025, we further enhanced

our ESG legislation tracking to proactively

identify and respond to upcoming changes

in laws and regulations, ensuring timely

alignment with business ethics and

compliance standards.

Speak Up and Non-retaliation Policy

Our policy encourages open communication

and aims to promptly address violations of

our Code of Conduct. Speaking up is essential

to maintaining our reputation and our operational

integrity – and, while we understand the

courage it takes to raise such concerns, it is

important for a safe and ethical workplace.

We urge everyone to report issues to the

relevant parties or the Ethics and Business

Integrity Office, promoting a culture of

integrity and accountability and ensuring

a better and safer environment for all.

Third-party risk management (TPRM)

As part of the TPRM program, we screen

(potential) vendors, customers and other

partners to identify and mitigate any risks

associated with working with them. We

continuously invest in our information and

automation capabilities, and benchmark

our TPRM governance against industry

best practices.

Strengthening privacy governance

In June 2025, our Binding Corporate Rules

(BCRs) were approved by the Dutch data

protection authority. This approval allows

us to transfer personal data from the EU to

ASML group entities based in third countries.

The ASML BCRs consist of those for Employee

Data and for Business Partner Data.

Our Privacy Office has strategic objectives

captured in an annual plan that guides our

privacy efforts. By formalizing our approach,

we aim to enhance accountability and drive

continuous improvement. In 2025, we

updated our Privacy Notices, and

implemented a new tool for managing

incoming questions and requests.

We strive to improve our privacy processes

by reviewing them regularly and making use

of technology and automation to optimize

efficiency. This helps us reduce operational

risks and respond more effectively to the

evolving privacy landscape. We encourage

greater privacy awareness by conducting

comprehensive training programs for all

our employees.

Ethical conduct and anti-bribery and

anti-corruption measures

In 2025, our new Conflicts of Interest Policy

was approved. After implementation, which

is planned for 2026, the policy will guide

employees – as well as job candidates and

new hires – on what to do when a conflict of

interest arises and requires them to disclose

actual, potential or perceived conflicts of

interest. This gives our stakeholders

confidence in our integrity and helps us

protect our reputation.

Should employees need further guidance

or wish to express concerns regarding anti-

fraud, anti-bribery and anti-corruption, they

can do so via their manager, Human

Resources representative, ethics liaison or

our Ethics Office. They are also free to use

our Speak Up Service.

When breaches of anti-bribery or anti-

corruption standards are suspected, we

conduct a timely and thorough investigation.

Where relevant, we take corrective actions –

including disciplinary measures and reviewing

and enhancing our internal controls and

policies. We may also decide to provide

additional training and take other actions

to further promote a culture of ethics and

professional integrity.

Read more in our Speak Up and Non-retaliation

Policy at asml.com

Resources

We dedicated 13 FTEs to teams executing

these activities.

Looking ahead

We strive to foster ethical leadership

throughout all levels of the organization,

supported by a culture of integrity where

people feel empowered and responsible,

and encouraged to speak up. In close

collaboration with our colleagues, we plan

to engage stakeholders through targeted

initiatives designed to embed a culture of

ethical leadership across the organization,

such as enhanced guidance and practical

toolkits, leadership support programs, and

the sharing of best practices.

We remain dedicated to continuously

enhancing our privacy practices and

staying aligned with changing regulatory

requirements. Earning and maintaining

stakeholder trust is essential, and safeguarding

personal data will continue to be a core

priority in everything we do.

We will also continue to enhance our anti-

bribery and anti-corruption framework by

completing a targeted review and update

of the Anti-Bribery and Anti-Corruption

Policy and the Anti-Fraud Policy in 2026,

as scheduled under the company’s review

cycle, aligning them with evolving laws and

insights. We will continue to monitor and

innovate our controls in higher-risk areas

and engage with our stakeholders to further

promote a culture of integrity.

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General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Metrics table and additional disclosures

Topic	Description	2024	2025
Governance	Number of convictions for violation of anti-corruption and anti-bribery laws	0	0
	Monetary value of fines for violation of anti-corruption and anti-bribery laws (€)	0	0
	Number of complaints filed through channels for own workforce	93	77
	Number of incidents of discrimination including harassment	60	37
	Monetary value of fines, penalties and compensation for damages as a result of complaints or incidents of discrimination including harassment (€)	0	0
	Number of severe human rights incidents	0	0
	Monetary value of fines, penalties and compensations for damages as a result of severe human rights incidents (€)	0	0	Methodology on metrics
---

G1-4 Incidents of corruption or bribery

Violation of anti-corruption and anti-bribery laws

This metric includes all convictions and fines for

a violation of anti-corruption or anti-bribery laws

and regulations imposed in the year by a relevant

enforcement authority.

S1-17 Incidents, complaints and severe

human rights impacts

Number of complaints filed through channels for

own workforce

This metric covers all Speak Up reports received

during the year, and any complaints filed with the

National Contact Points for OECD Multinational

Enterprises, that relate to social (sub)topics as

defined by the ESRS standards within ASML’s

own workforce. These categories are a subset of

the ‘total Speak Up reports received’ metric

presented under Responsible Business Conduct

and Compliance in the ‘Our Targets and

Performance’ section.

Number of incidents of discrimination

including harassment

We report complaints or incidents related

to discrimination including harassment, as

registered by:

•Our company through our Speak Up Service,

or through other established procedures

including management system audits or

formal monitoring programs

•Competent authorities through a formal process

Severe human rights incidents

The severity of a human rights incident

depends on the assessment of the gravity,

how widespread it is and its irremediable

character. As a result, it is not possible to give a

single, all-encompassing definition. However, we

do recognize any identified case of forced labor,

human trafficking or child labor as a severe

human rights incident.

Our definition of a human rights incident is

aligned with the following pertinent

international conventions:

•International Bill of Human Rights

•International Labour Organization Declaration

on Fundamental Principles and Rights at Work

•United Nations Guiding Principles on Business

and Human Rights

•Organization for Economic Co-operation

and Development Guidelines for

Multinational Enterprises

As a result, all severe human rights incidents

reported are also cases of non-respect of these.

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General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table

This reference table presents the requirements of the ESRS. It indicates where you can find the specific ESRS disclosure requirement, as well as where we have used incorporation by reference or applied for a phase-in provision.

In addition, it includes our list of data points that derive from other EU legislation.

Related ESRS disclosure requirements	Reference	Explanation
ESRS 2 – General disclosures
BP-1 – General basis for preparation of Sustainability statements	•Sustainability statements – General disclosures – Basis for preparation
BP-2 – Disclosures in relation to specific circumstances	•Sustainability statements – General disclosures – Basis for preparation
GOV-1 – The role of the administrative, management and supervisory bodies	•Sustainability statements – General disclosures – ESG sustainability governance<br><br>•Corporate governance – Corporate governance – Supervisory Board<br><br>•Corporate governance – Corporate governance – Board of Management<br><br>•Corporate governance – Corporate governance – Other Board-related matters	Includes DR21d Board’s gender diversity ratio and DR21e Percentage of independent board<br><br>members
GOV-2 – Information provided to and sustainability matters addressed by the<br><br>undertaking’s administrative, management and supervisory bodies	•Sustainability statements – General disclosures – ESG sustainability governance<br><br>•Sustainability statements – General disclosures – Impact, risk and opportunity management
GOV-3 – Integration of sustainability-related performance in incentive schemes	•Sustainability statements – General disclosures – ESG sustainability governance<br><br>•Corporate governance – Remuneration report – Board of Management remuneration
GOV-4 – Statement on due diligence	•Sustainability statements – General disclosures – Environmental and human rights due diligence	Includes DR30 Statement on due diligence
GOV-5 – Risk management and internal controls over sustainability reporting	•Sustainability statements – General disclosures – ESG sustainability governance
SBM-1 – Strategy, business model and value chain	•Strategic report – Our business<br><br>•Sustainability statements – General disclosures – ESG sustainability at a glance<br><br>•Sustainability statements – General disclosures – Value chain and ecosystem overview<br><br>•Sustainability statements – Social – Attractive workplace for all<br><br>•Sustainability statements – Social – Responsible value chain	DR40di Undertaking is active in fossil fuel (coal, oil and gas) sector, DR40dii Undertaking is<br><br>active in chemicals production, DR40diii Undertaking is active in controversial weapons and<br><br>DR40div Undertaking is active in cultivation and production of tobacco not applicable
SBM-2 – Interests and views of stakeholders	•Strategic report – Our business – Engaged stakeholders<br><br>•Sustainability statements – General disclosures – Basis for preparation
SBM-3 – Material impacts, risks and opportunities, and their interaction with<br><br>strategy and business model	•Sustainability statements – General disclosures – Basis for preparation<br><br>•Sustainability statements – General disclosures – Impact, risk and opportunity management	Phase-in provision applied for DR48e and AR18 (anticipated financial effects)
IRO-1 – Description of the process to identify and assess material impacts, risks<br><br>and opportunities	•Sustainability statements – General disclosures – Impact, risk and opportunity management
IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s<br><br>sustainability statement	•Sustainability statements – General disclosures – Impact, risk and opportunity management
MDR-P – Policies adopted to manage material sustainability matters	•Minimum disclosure requirements on policies are included in the ‘how we are managing’ sections of the topics
MDR-A – Actions and resources in relation to material sustainability matters	•Minimum disclosure requirements on actions and resources are included in the ‘our actions and resources’<br><br>sections of the topics
MDR-M – Metrics in relation to material sustainability matters	•Minimum disclosure requirements on metrics are included in the ‘targets and performance’ and ‘metrics table’<br><br>sections of the topics
MDR-T – Tracking effectiveness of policies and actions through targets	•Minimum disclosure requirements on targets are included in the ‘targets and performance’ sections of<br><br>the topics
ESRS E1 Climate change
GOV-3 – Integration of sustainability-related performance in incentive schemes	•Corporate governance – Remuneration report – Board of Management remuneration<br><br>•Sustainability statements – Environmental – Energy efficiency and climate action – Targets and performance
E1-1 – Transition plan for climate change mitigation	•Strategic report – Risk and security – Risk factors – Operations<br><br>•Sustainability statements – Environmental – Energy efficiency and climate action – How we are managing<br><br>energy efficiency and climate action: Climate Transition Plan

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General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

Related ESRS disclosure requirements	Reference	Explanation
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy<br><br>and business model	•Sustainability statements – Environmental – Energy efficiency and climate action – Climate resilience analysis
IRO-1 – Description of the processes to identify and assess material climate-related<br><br>impacts, risks and opportunities	•Sustainability statements – General disclosures – Impact, risk and opportunity management<br><br>•Sustainability statements – Environmental – Energy efficiency and climate action – Climate resilience analysis
E1-2 – Policies related to climate change mitigation and adaptation	•Sustainability statements – Environmental – Energy efficiency and climate action – How we are managing<br><br>energy efficiency and climate action: Climate Transition Plan<br><br>•Strategic report – Risk and security – Risk factors – Operations
E1-3 – Actions and resources in relation to climate change policies	•Sustainability statements – Environmental – Energy efficiency and climate action – Our actions and resources
E1-4 – Targets related to climate change mitigation and adaptation	•Sustainability statements – Environmental – Energy efficiency and climate action – Climate resilience analysis<br><br>•Sustainability statements – Environmental – Energy efficiency and climate action – Targets and performance	Includes DR34 GHG emissions reduction targets
E1-5 – Energy consumption and mix	•Sustainability statements – Environmental – Energy efficiency and climate action – Metrics table and<br><br>Additional disclosures	Includes DR37, DR38, DR40, DR41, DR42, DR43 Energy consumption
E1-6 – Gross scope 1, 2, 3 and Total GHG emissions	•Sustainability statements – Environmental – Energy efficiency and climate action – Metrics table and<br><br>Additional disclosures	Includes DR44 Gross scope 1, 2, 3 and Total GHG emissions and DR 53–55 GHG emissions<br><br>intensity
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits	•Sustainability statements – Environmental – Energy efficiency and climate action – How we are managing<br><br>energy efficiency and climate action: Climate Transition Plan<br><br>•Sustainability statements – Environmental – Energy efficiency and climate action – Metrics table and<br><br>Additional disclosures
E1-8 – Internal carbon pricing	•Sustainability statements – Environmental – Energy efficiency and climate action – How we are managing<br><br>energy efficiency and climate action: Climate Transition Plan
E1-9 – Anticipated financial effects from material physical and transition risks and<br><br>potential climate-related opportunities	Not included	Phase-in provision applied
ESRS E2 Pollution		Not a material topic based on the outcome of our DMA
ESRS E3 Water and marine resources		Not a material topic based on the outcome of our DMA
ESRS E4 Biodiversity and ecosystems		Not a material topic based on the outcome of our DMA
ESRS E5 Resource use and circular economy
IRO-1 – Description of the processes to identify and assess material resource use<br><br>and circular economy-related impacts, risks and opportunities	•Sustainability statements – General disclosures – Impact, risk and opportunity management
E5-1 – Policies related to resource use and circular economy	•Sustainability statements – Environmental – Circular economy – How we are managing circular economy
E5-2 – Actions and resources related to resource use and circular economy	•Sustainability statements – Environmental – Circular economy – Our actions and resources
E5-3 – Targets related to resource use and circular economy	•Sustainability statements – Environmental – Circular economy – Targets and performance
E5-4 – Resource inflows	•Sustainability statements – Environmental – Circular economy – Metrics table and Additional disclosures
E5-5 – Resource outflows	•Sustainability statements – Environmental – Circular economy – Metrics table and Additional disclosures	Includes DR37d Non-recycled waste and DR39 Hazardous waste and radioactive waste
E5-6 – Anticipated financial effects from resource use and circular economy-related<br><br>impacts, risks and opportunities	Not included	Phase-in provision applied
ESRS S1 Own workforce
SBM-2 – Interests and views of stakeholders	•Sustainability statements – General disclosures – Impact, risk and opportunity management
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy<br><br>and business model	•Sustainability statements – General disclosures – Impact, risk and opportunity management	Includes DR14f Risk of incidents of forced labor and DR14g Risk of incidents of child labor

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General disclosures	Environmental	Social	Governance
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Reference table (continued)

Related ESRS disclosure requirements	Reference	Explanation
S1-1 – Policies related to own workforce	•Sustainability statements – General disclosures – Environmental and human rights due diligence<br><br>•Sustainability statements – General disclosures – ESG sustainability governance<br><br>•Sustainability statements – Social – Attractive Workplace for all – How we are managing attractive workplace<br><br>for all<br><br>•Strategic report – Our business – Create an exceptional workplace	Includes DR20 Human rights policy commitments; DR21 Due diligence policies on issues<br><br>addressed by the fundamental International Labor Organization (ILO) Conventions 1 to 8;<br><br>DR22 Processes and measures for preventing trafficking in human beings and DR23<br><br>Workplace accident prevention policy or management system
S1-2 – Processes for engaging with own workforce and workers’ representatives<br><br>about impacts	•Sustainability statements – Social – Attractive Workplace for all – How we are managing attractive workplace<br><br>for all<br><br>•Strategic report – Our business – Engaged stakeholders – Employees
S1-3 – Processes to remediate negative impacts and channels for own workers to<br><br>workforce to raise concerns	•Sustainability statements – Social – Attractive Workplace for all – How we are managing attractive workplace<br><br>for all	Includes DR32c Grievance/complaints handling mechanisms
S1-4 – Taking action on material impacts on own workforce, and approaches to<br><br>managing material risks and pursuing material opportunities related to own<br><br>workforce, and effectiveness of those actions	•Sustainability statements – Social – Attractive Workplace for all – How we are managing attractive workplace<br><br>for all<br><br>•Sustainability statements – Social – Attractive workplace for all – Our actions and resources
S1-5 – Targets related to managing material negative impacts, advancing positive<br><br>impacts, and managing material risks and opportunities	•Sustainability statements – Social – Attractive workplace for all – Targets and performance
S1-6 – Characteristics of the undertaking’s employees	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures
S1-7 – Characteristics of non-employees in the undertaking’s own workforce	Not included	‘Quick fix’ over phase-in provisions applied
S1-8 – Collective bargaining coverage and social dialogue	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures
S1-9 – Diversity metrics	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures
S1-10 – Adequate wages	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures
S1-11 – Social protection	Not included	‘Quick fix’ over phase-in provisions applied
S1-12 – Persons with disabilities	Not included	‘Quick fix’ over phase-in provisions applied
S1-13 – Training and skills development metrics	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures
S1-14 – Health and safety metrics	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures	Includes DR88b DR88c Number of fatalities and number and rate of work-related accidents<br><br>–‘Quick fix’ over phase-in provisions applied for non-employees; DR88d Number of cases of<br><br>recordable work-related ill health; DR88e Number of days lost to injuries, accidents, fatalities<br><br>or illness.
S1-15 – Work-life balance metrics	Not included	‘Quick fix’ over phase-in provisions applied
S1-16 – Remuneration metrics (pay gap and total remuneration)	•Sustainability statements – Social – Attractive workplace for all – Metrics table and Additional disclosures	Includes DR97a Unadjusted gender pay gap and DR97b CEO pay ratio
S1-17 – Incidents, complaints and severe human rights impacts	•Sustainability statements – Governance – ESG integrated governance – Metrics table and Additional<br><br>disclosures	Includes DR103a Incidents of discrimination and DR104a Non-respect of UNGPs and<br><br>OECD Guidelines
ESRS S2 Workers in the value chain
SBM-2 – Interests and views of stakeholders	•Sustainability statements – General disclosures – Impact, risk and opportunity management
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy<br><br>and business model	•Sustainability statements – General disclosures – Environmental and human rights due diligence<br><br>•Sustainability statements – General disclosures – Impact, risk and opportunity management<br><br>•Sustainability statements – General disclosures – Value chain and ecosystem overview	Includes DR11b Significant risk of child labor or forced labor in the value chain
S2-1 – Policies related to value chain workers	•Strategic report – Our business – Engaged stakeholders – Suppliers<br><br>•Sustainability statements – General disclosures – Environmental and human rights due diligence<br><br>•Sustainability statements – Social – Responsible value chain – How we are managing responsible value chain	Includes DR17 Human rights policy commitments; DR18 Policies related to value chain<br><br>workers; DR19 Non-respect of UNGPs and OECD Guidelines and Due diligence policies on<br><br>issues addressed by the fundamental ILO conventions 1 to 8
S2-2 – Processes for engaging with value chain workers about impacts	•Strategic report – Our business – Engaged stakeholders – Suppliers<br><br>•Sustainability statements – General disclosures – Environmental and human rights due diligence<br><br>•Sustainability statements – Social – Responsible value chain – How we are managing responsible value chain

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General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

Related ESRS disclosure requirements	Reference	Explanation
S2-3 – Processes to remediate negative impacts and channels for value chain<br><br>workers to raise concerns	•Sustainability statements – Social – Responsible value chain – How we are managing responsible value chain<br><br>•Sustainability statements – Governance – ESG integrated governance
S2-4 – Taking action on material impacts on value chain workers, and approaches<br><br>to managing material risks and pursuing material opportunities related to value chain<br><br>workers, and effectiveness of those actions	•Sustainability statements – Social – Responsible value chain – Our actions and resources	Includes DR36 Human rights issues and incidents connected to its upstream and<br><br>downstream value chain
S2-5 – Targets related to managing material negative impacts, advancing positive<br><br>impacts, and managing material risks and opportunities	•Sustainability statements – Social – Responsible value chain – Targets and performance	While we haven’t set measurable targets for this topic, our approach to tracking progress is<br><br>outlined in the referenced chapter.
ESRS S3 Affected communities
SBM-2 – Interests and views of stakeholders	•Sustainability statements – General disclosures – Impact, risk and opportunity management
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy<br><br>and business model	•Sustainability statements – General disclosures – Impact, risk and opportunity management
S3-1 – Policies related to affected communities	•Sustainability statements – Social – Valued partner in our communities – How we are managing valued partner<br><br>in our communities	Includes DR16 Human rights policy commitments; DR17 Non-respect of UNGPs, ILO<br><br>principles or OECD Guidelines
S3-2 – Processes for engaging with affected communities about impacts	•Strategic report – Our business – Engaged stakeholders – Society<br><br>•Sustainability statements – Social – Valued partner in our communities – How we are managing valued partner<br><br>in our communities
S3-3 – Processes to remediate negative impacts and channels for affected<br><br>communities to raise concerns	•Sustainability statements – Social – Valued partner in our communities – How we are managing valued partner<br><br>in our communities
S3-4 – Taking action on material impacts on affected communities, and approaches<br><br>to managing material risks and pursuing material opportunities related to affected<br><br>communities, and effectiveness of those actions	•Sustainability statements – General disclosures – Environmental and human rights due diligence<br><br>•Sustainability statements – General disclosures – ESG sustainability governance<br><br>•Sustainability statements – Social – Valued partner in our communities – Our actions and resources	Includes DR36 Human rights issues and incidents
S3-5 – Targets related to managing material negative impacts, advancing positive<br><br>impacts, and managing material risks and opportunities	•Sustainability statements – Social – Valued partner in our communities – Targets and performance
ESRS S4 Consumers and end-users		Not a material topic based on the outcome of our DMA
ESRS G1 Business conduct
GOV-1 – The role of the administrative, supervisory and management bodies	•Sustainability statements – General disclosures – ESG sustainability governance<br><br>•Corporate governance – Corporate governance – Supervisory Board<br><br>•Corporate governance – Corporate governance – Board of Management<br><br>•Sustainability statements – Governance – ESG integrated governance – How we are managing ESG integrated<br><br>governance
IRO-1 – Description of the processes to identify and assess material impacts, risks<br><br>and opportunities	•Sustainability statements – General disclosures – Impact, risk and opportunity management
G1-1 – Business conduct policies and corporate culture	•Sustainability statements – Governance – ESG integrated governance	Includes DR10b United Nations Convention against Corruption; DR10d Protection of whistle-<br><br>blowers
G1-2 – Management of relationships with suppliers	•Sustainability statements – Governance – ESG integrated governance
G1-3 – Prevention and detection of corruption and bribery	•Sustainability statements – Governance – ESG integrated governance
G1-4 – Incidents of corruption or bribery	•Sustainability statements – Governance – ESG integrated governance	Includes DR24a Fines for violation of anti-corruption and anti-bribery laws; DR24b Standards<br><br>of anti-corruption and anti-bribery
G1-5 – Political influence and lobbying activities		Not a material sub-topic based on the outcome of our DMA
G1-6 – Payment practices		Not a material sub-topic based on the outcome of our DMA

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Financial

statements

	Consolidated financial statements
274	Reports of independent registered public accounting firms
277	Consolidated statements of operations
278	Consolidated statements of comprehensive income
279	Consolidated balance sheets
280	Consolidated statements of shareholders’ equity
282	Consolidated statements of cash flows
283	Notes to the Consolidated financial statements

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Financial statements	Notes	Appendices	Definitions
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Report of independent registered public accounting firm

To the Supervisory Board and Shareholders of ASML Holding N.V.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheet of ASML Holding N.V. and its subsidiaries (the

“Company”) as of December 31, 2025, and the related consolidated statements of operations, comprehensive

income, shareholders’ equity, and cash flows for the year then ended, including the related notes (collectively referred

to as the “consolidated financial statements”). We also have audited the Company's internal control over financial

reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013)

issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the

financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the

year then ended in conformity with accounting principles generally accepted in the United States of America. Also in

our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of

December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the

COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective

internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial

reporting, included in Management’s report on internal control over financial reporting, appearing under Item 15. Our

responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's

internal control over financial reporting based on our audit. We are a public accounting firm registered with the Public

Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to

the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the

Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of

material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting

was maintained in all material respects.

Our audit of the consolidated financial statements included performing procedures to assess the risks of material

misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that

respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles

used and significant estimates made by management, as well as evaluating the overall presentation of the

consolidated financial statements.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over

financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and

operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other

procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis

for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A company’s internal control over financial reporting

includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable

assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance

with generally accepted accounting principles, and that receipts and expenditures of the company are being made

only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s

assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become

inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may

deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated

financial statements that was communicated or required to be communicated to the audit committee and that (i)

relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our

especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter

in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating

the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or

disclosures to which it relates.

Revenue recognition – Identification of distinct performance obligations in volume purchase agreements

As disclosed by management, net sales were EUR 32,667.3 million for the year ended December 31, 2025. As

described in Note 2 to the consolidated financial statements, the main portion of net sales are entered into with

customers under volume purchase agreements (“VPAs”) that have multiple performance obligations, which mainly

include sales of systems, system-related options, installation, training, and extended and enhanced warranties.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Report of independent registered public accounting firm (continued)

The principal considerations for our determination that performing procedures relating to revenue recognition –

identification of distinct performance obligations in volume purchase agreements is a critical audit matter are a high

degree of auditor subjectivity and effort in performing procedures and evaluating the sufficiency and appropriateness

of audit evidence related to the identification of distinct performance obligations in material VPAs.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our

overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of

controls relating to the Company’s revenue recognition process related to the identification of distinct performance

obligations included in VPAs. These procedures also included, among others, (i) evaluating the identification of

distinct performance obligations of material VPAs by obtaining and reading the agreement as well as relevant

amendments and underlying accounting analysis and considering the specific terms, conditions, and promises

introduced; and (ii) the identification of circumstances which may trigger the identification of additional performance

obligations.

/s/ PricewaterhouseCoopers Accountants N.V.

Eindhoven, The Netherlands

February 25, 2026

We have served as the Company’s auditor since 2024.

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Financial statements	Notes	Appendices	Definitions
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Report of independent registered public accounting firm

To the Shareholders and Supervisory Board

ASML Holding N.V.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of ASML Holding N.V. and subsidiaries (the

Company) as of December 31, 2024, the related consolidated statements of operations, comprehensive income,

shareholders’ equity, and cash flows for each of the years in the two year period ended December 31, 2024, and the

related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements

present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results

of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024, in

conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to

express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm

registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be

independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of

material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks

of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing

procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the

amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting

principles used and significant estimates made by management, as well as evaluating the overall presentation of the

consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG Accountants N.V.

Amstelveen, The Netherlands

March 5, 2025

We served as the Company’s auditor from 2015 to 2025.

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Consolidated statements of operations

Year ended December 31 (€, in millions, except per share data)	Notes	2023	2024	2025
Net system sales		21,938.6	21,768.7	24,474.3
Net service and field option sales		5,619.9	6,494.2	8,193.0
Total net sales	2, 3	27,558.5	28,262.9	32,667.3
Cost of system sales		(10,151.0)	(10,406.9)	(11,384.0)
Cost of service and field option sales		(3,271.4)	(3,364.0)	(4,025.3)
Total cost of sales1		(13,422.4)	(13,770.9)	(15,409.3)
Gross profit		14,136.1	14,492.0	17,258.0
Research and development (R&D) costs		(3,980.6)	(4,303.7)	(4,698.8)
Selling, general and administrative (SG&A) costs		(1,113.2)	(1,165.7)	(1,257.8)
Income from operations		9,042.3	9,022.6	11,301.4
Interest and other, net	16	41.2	19.8	104.7
Income before income taxes		9,083.5	9,042.4	11,406.1
Income tax expense	21	(1,435.8)	(1,680.6)	(2,013.4)
Income after income taxes		7,647.7	7,361.8	9,392.7
Profit from equity method investments	10	191.3	209.8	216.7
Net income		7,839.0	7,571.6	9,609.4
Basic net income per ordinary share	23	19.91	19.25	24.73
Diluted net income per ordinary share	23	19.89	19.24	24.71
Number of ordinary shares used in computing per share amounts:
Basic	23	393.8	393.3	388.5
Diluted	23	394.1	393.6	388.9

1.Cost of sales includes amounts with related parties of €3,503.1 million, €2,793.2 million and €2,854.5 million in 2025, 2024 and 2023, respectively.

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Financial statements	Notes	Appendices	Definitions
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Consolidated statements of comprehensive income

Year ended December 31 (€, in millions)	Notes	2023	2024	2025
Net income		7,839.0	7,571.6	9,609.4
Other comprehensive income:
Proportionate share of OCI from equity method investments		0.2	(12.1)	14.1
Foreign currency translation, net of taxes:
Gain (loss) on foreign currency translation		(68.3)	91.9	(257.8)
Financial instruments, net of taxes:
Gain (loss) on derivative financial instruments		(15.8)	38.2	(88.4)
Transfers to net income from derivative financial instruments	25	0.6	(8.9)	13.8
Other comprehensive income, net of taxes		(83.3)	109.1	(318.3)
Total comprehensive income, net of taxes		7,755.7	7,680.7	9,291.1
Attributable to equity holders		7,755.7	7,680.7	9,291.1
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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Consolidated balance sheets

As of December 31 (€, in millions, except share and per share data)	Notes	2024	2025
Assets
Cash and cash equivalents	4	12,735.9	12,916.0
Short-term investments	4	5.4	405.9
Accounts receivable, net1	5	4,477.5	3,023.0
Finance receivables, net	6	82.6	613.5
Current tax assets	21	283.6	88.9
Contract assets	2	320.6	440.6
Inventories, net	7	10,891.5	11,429.3
Loans receivable2	26	—	266.1
Other assets4	8	1,940.3	1,432.8
Total current assets		30,737.4	30,616.1
Finance receivables, net	6	317.2	13.3
Deferred tax assets	21	1,940.7	1,719.4
Loans receivable3	26	1,456.6	1,653.9
Other assets5	8	790.8	1,057.1
Equity investments	9	—	1,320.7
Equity method investments	10	903.0	822.6
Goodwill	11	4,588.6	4,588.6
Other intangible assets, net	12	621.3	540.1
Property, plant and equipment, net	13	6,846.8	7,893.8
Right-of-use assets	14	387.2	341.0
Total non-current assets		17,852.2	19,950.5
Total assets		48,589.6	50,566.6
As of December 31 (, in millions, except share and per share data)	2024	2025
---	---	---
Liabilities and shareholders’ equity
Accounts payable6	3,500.4	3,521.8
Accrued and other liabilities7	2,686.6	2,567.3
Current tax liabilities	283.3	486.6
Short-term borrowings and current portion of long-term debt	1,010.3	1,681.9
Contract liabilities	12,570.8	16,006.3
Total current liabilities	20,051.4	24,263.9
Long-term debt	3,677.3	2,709.0
Deferred and other income tax liabilities	299.2	183.0
Contract liabilities	5,625.4	3,366.3
Accrued and other liabilities	459.5	432.2
Total non-current liabilities	10,061.4	6,690.5
Total liabilities8	30,112.8	30,954.4
Ordinary shares; 0.09 nominal value;
700,000,000 shares authorized at December 31, 2025 (2024: 700,000,000)
385,417,665 issued and outstanding at December 31, 2025 (2024: 393,283,720)
Issued and outstanding shares	35.4	34.9
Share premium	4,049.0	4,107.1
Treasury shares at cost	(476.0)	(2,252.9)
Retained earnings	14,414.3	17,587.3
Accumulated other comprehensive income	454.1	135.8
Total shareholders’ equity	18,476.8	19,612.2
Total liabilities and shareholders’ equity	48,589.6	50,566.6

All values are in Euros.

1.Accounts receivable includes amounts with related parties of €1.1 million and €70.8 million at December 31, 2025 and

2024

, respectively.

2.Loans receivable – current includes amounts with related parties of €260.2 million and €0.0 million at December 31, 2025 and 2024, respectively.

3.Loans receivable – non-current includes amounts with related parties of €1,647.3 million and €1,440.8 million at December 31, 2025 and 2024,

respectively.

4.Other assets – current includes amounts with related parties of €323.5 million and €815.8 million at December 31, 2025 and

2024

, respectively.

5.Other assets – non-current includes amounts with related parties of €868.4 million and €599.9 million at December 31, 2025 and

2024

, respectively.

6.Accounts payable includes amounts with related parties of €1,085.8 million and €955.8 million at December 31, 2025 and

2024

, respectively.

7.Accrued and other liabilities – current includes amounts with related parties of €123.0 million and €199.9 million at December 31, 2025 and

2024

, respectively.

8.For information regarding commitments and contingencies, see Note 17 Commitments and contingencies.

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Consolidated statements of shareholders’ equity

	Issued and outstanding shares		Share premium	Treasury shares<br><br>at cost	Retained<br><br>earnings	OCI1	Total
(, in millions)	Number	Amount
Balance at January 1, 2023	394.6	36.3	3,940.8	(4,641.3)	9,046.7	428.3	8,810.8
Components of comprehensive income:
Net income	—	—	—	—	7,839.0	—	7,839.0
Proportionate share of OCI from equity method investments	—	—	—	—	—	0.2	0.2
Gain (loss) on foreign currency translation	—	—	—	—	—	(68.3)	(68.3)
Gain (loss) on financial instruments	—	—	—	—	—	(15.2)	(15.2)
Total comprehensive income	—	—	—	—	7,839.0	(83.3)	7,755.7
Purchase of treasury shares	(1.6)	—	—	(1,000.0)	—	—	(1,000.0)
Cancellation of treasury shares	—	(0.3)	—	2,105.1	(2,104.8)	—	—
Share-based payments	—	—	134.8	—	—	—	134.8
Issuance of shares	0.5	—	(77.5)	230.0	(53.1)	—	99.4
Dividend paid	—	—	—	—	(2,348.3)	—	(2,348.3)
Balance at December 31, 2023	393.5	36.0	3,998.1	(3,306.2)	12,379.5	345.0	13,452.4
Components of comprehensive income:
Net income	—	—	—	—	7,571.6	—	7,571.6
Proportionate share of OCI from equity method investments	—	—	—	—	—	(12.1)	(12.1)
Gain (loss) on foreign currency translation	—	—	—	—	—	91.9	91.9
Gain (loss) on financial instruments	—	—	—	—	—	29.3	29.3
Total comprehensive income	—	—	—	—	7,571.6	109.1	7,680.7
Purchase of treasury shares	(0.6)	(0.1)	—	(499.9)	—	—	(500.0)
Cancellation of treasury shares	—	(0.5)	—	3,050.4	(3,049.9)	—	—
Share-based payments	—	—	172.6	—	—	—	172.6
Issuance of shares	0.4	—	(121.7)	279.7	(34.0)	—	124.0
Dividend paid	—	—	—	—	(2,452.9)	—	(2,452.9)
Balance at December 31, 2024	393.3	35.4	4,049.0	(476.0)	14,414.3	454.1	18,476.8

All values are in Euros.

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Financial statements	Notes	Appendices	Definitions
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Consolidated statements of shareholders’ equity (continued)

	Issued and outstanding shares		Share premium	Treasury shares<br><br>at cost	Retained<br><br>earnings	OCI1	Total
(, in millions)	Number	Amount
Balance at December 31, 2024	393.3	35.4	4,049.0	(476.0)	14,414.3	454.1	18,476.8
Components of comprehensive income:
Net income	—	—	—	—	9,609.4	—	9,609.4
Proportionate share of OCI from equity method investments	—	—	—	—	—	14.1	14.1
Gain (loss) on foreign currency translation	—	—	—	—	—	(257.8)	(257.8)
Gain (loss) on financial instruments	—	—	—	—	—	(74.6)	(74.6)
Total comprehensive income	—	—	—	—	9,609.4	(318.3)	9,291.1
Purchase of treasury shares	(8.3)	—	—	(5,950.0)	—	—	(5,950.0)
Cancellation of treasury shares	—	(0.5)	—	3,778.3	(3,777.8)	—	—
Share-based payments	—	—	202.3	—	—	—	202.3
Issuance of shares	0.4	—	(144.2)	394.8	(108.3)	—	142.3
Dividend paid	—	—	—	—	(2,550.3)	—	(2,550.3)
Balance at December 31, 2025	385.4	34.9	4,107.1	(2,252.9)	17,587.3	135.8	19,612.2

All values are in Euros.

1.As of December 31, 2025, accumulated OCI consists of €35.0 million gain relating to our proportionate share of other comprehensive income from equity method investments (2024: €20.9 million gain; 2023: €33.0 million gain), €153.7 million relating to foreign currency translation gain (2024:

€411.5 million gain; 2023: €319.6 million gain) and €52.9 million relating to unrealized loss on financial instruments (2024: €21.7 million gain; 2023: €7.6 million loss).

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Financial statements	Notes	Appendices	Definitions
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Consolidated statements of cash flows

Year ended December 31 (€, in millions)	Notes	2023	2024	2025
Cash flows from operating activities
Net income		7,839.0	7,571.6	9,609.4
Adjustments to reconcile net income to net cash flows from<br><br>operating activities:
Depreciation and amortization1	12, 13	739.8	918.6	1,025.9
Impairment and loss on disposal	12, 13	37.5	35.8	49.7
Share-based compensation expense	18, 20	134.8	172.6	202.3
Inventory reserves	7	485.3	554.7	469.4
Deferred tax expense (benefit)	21	(133.6)	(144.8)	180.7
Equity method investments2	10, 26	4.2	4.4	94.6
Changes in assets and liabilities:
Accounts receivable, net	5	959.9	(139.9)	1,415.5
Finance receivables, net	6	(88.6)	1,038.7	(227.2)
Inventories	7	(1,646.9)	(1,860.9)	(832.5)
Other assets	8	(344.3)	(1,299.0)	(561.9)
Accrued and other liabilities	15	222.0	625.5	(237.3)
Accounts payable		(261.7)	1,127.6	13.4
Current tax assets and liabilities	21	(939.4)	689.5	334.1
Contract assets and liabilities	2	(1,564.6)	1,871.8	1,122.4
Net cash provided by operating activities		5,443.4	11,166.2	12,658.5
Cash flows from investing activities
Purchase of property, plant and equipment3	13	(2,155.6)	(2,067.2)	(1,573.6)
Purchase of intangible assets	12	(40.6)	(15.9)	(57.6)
Purchase of short-term investments	4	(23.6)	(305.2)	(406.2)
Maturity of short-term investments	4	125.6	305.2	5.3
Purchase of equity investments	9	—	—	(1,302.2)
Loans issued and other investments4	26	(561.5)	(526.2)	(703.7)
Repayment on loans5	26	—	—	260.2
Acquisition of subsidiaries (net of cash acquired)		(33.6)	—	—
Net cash used in investing activities		(2,689.3)	(2,609.3)	(3,777.8)	Year ended December 31 (€, in millions)	Notes	2023	2024	2025
---	---	---	---	---
Cash flows from financing activities
Dividend paid	22	(2,348.3)	(2,452.9)	(2,550.3)
Purchase of treasury shares	22	(1,000.0)	(500.0)	(5,950.0)
Net proceeds from issuance of shares	20	99.4	124.0	142.3
Net proceeds from issuance of borrowings	16	997.8	22.5	754.2
Repayment of debt and finance lease obligations	14, 16	(752.8)	(25.7)	(1,066.7)
Net cash used in financing activities		(3,003.9)	(2,832.1)	(8,670.5)
Net cash flows		(249.8)	5,724.8	210.2
Effect of changes in exchange rates on cash		(13.8)	6.4	(30.1)
Net increase (decrease) in cash and cash equivalents		(263.6)	5,731.2	180.1
Cash and cash equivalents at beginning of the year	4	7,268.3	7,004.7	12,735.9
Cash and cash equivalents at end of the year	4	7,004.7	12,735.9	12,916.0
Supplemental disclosures of cash flow information
Change in unpaid portion of property, plant and equipment,<br><br>excluded in investing activities, included in accounts payable		49.3	23.6	22.3
Interest received		190.8	169.5	201.3
Interest paid		(137.8)	(160.0)	(114.5)
Income taxes paid, net of refunds		(2,568.3)	(1,098.0)	(1,621.4)

1.Depreciation and amortization include depreciation of property, plant and equipment, amortization of intangible assets, and other (amortization

of underwriting commissions, amortization of discounts related to borrowings, credit facilities and accretion of loans issued at a discount).

2.Equity method investments relates to our 24.9% equity interest in Carl Zeiss SMT Holding GmbH & Co. KG and includes our share of the net

result, dividends received and other equity movements, as well as the capitalization of our R&D funding to Carl Zeiss SMT Holding GmbH &

Co. KG as disclosed in Note 26 Related parties and variable interest entities. The dividend received is a cash inflow of €320.5 million (2024:

€225.4 million; 2023: €218.0 million).

3.Purchase of property, plant and equipment includes a cash outflow of €0.0 million (2024: €0.0 million; 2023: €45.1 million) to related parties.

4.Loans issued and other investments includes a cash outflow of €703.7 million (2024: €528.4 million, 2023: €548.0 million) net of €121.8 million

(2024: €81.6 million, 2023: €0.0 million) unamortized discount included in other assets, to related parties.

5.Repayment on loans includes a cash inflow of €256.9 million (2024:€0.0 million, 2023: €0.0 million) from related parties.

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements

1. General information / summary of general accounting policies

ASML is a leading supplier to the semiconductor industry. We provide chipmakers with hardware, software and

services to mass produce the patterns of integrated circuits (microchips). Together with our partners, we drive the

advancement of more affordable, more powerful and more energy-efficient microchips. We enable groundbreaking

technology to solve some of humanity’s toughest challenges in healthcare, energy use and conservation, mobility and

agriculture. Headquartered in Europe’s top tech hub, the Brainport Eindhoven region in the Netherlands, we are a

global team of more than 44,000 employees (FTEs). Our principal operations are in EMEA, North America and Asia.

Our shares are listed for trading in the form of registered shares on Euronext Amsterdam and Nasdaq. The principal

trading market of our ordinary shares is Euronext Amsterdam.

Basis of preparation

The accompanying Consolidated financial statements are stated in millions of euros unless indicated otherwise.

The accompanying Consolidated financial statements have been prepared in conformity with US GAAP.

Use of estimates

The preparation of our Consolidated financial statements in conformity with US GAAP requires management to make

estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent

assets and liabilities on the balance sheet dates, and the reported amounts of net sales and costs for the reported

periods. The inputs into our estimates and assumptions consider economic implications including supply chain

constraints, inflation and uncertainty in the macroeconomic environment. ASML will continue to monitor the impacts

of economic implications and incorporate them into accounting estimates. We evaluate our estimates on a regular

basis and we base our estimates on historical experience and on various other assumptions that we believe to be

reasonable under the circumstances. Actual results may differ from these estimates if the assumptions prove

incorrect. To the extent there are material differences between actual results and these estimates, our future results

could be materially and adversely affected.

We believe that the accounting policies described below require us to make judgments and estimates in the

preparation of our Consolidated financial statements. We believe that these estimates and the related assumptions

are appropriate, however we do not believe any of them constitute critical accounting estimates that involve a

significant level of uncertainty that is reasonably likely to have a material impact on the Consolidated financial

statements.

Principles of consolidation

The Consolidated financial statements include the Financial statements of ASML Holding N.V. and all of its

subsidiaries. Subsidiaries are all entities over which ASML controls the financial and operating activities, generally

accompanying a shareholding of more than 50.0% of the outstanding voting rights. Subsidiaries are fully consolidated

from the date on which control is obtained by ASML. All intercompany transactions, balances and unrealized results

on transactions with subsidiaries are eliminated. We also assess if we are the primary beneficiary of, and thus should

consolidate, any variable interest entity (VIE).

Foreign currency translation

The financial information for subsidiaries with a functional currency outside the Eurozone is measured using a mix of

local currencies or the euro as the functional currency. The Financial statements of those foreign subsidiaries with a

functional currency different than the euro are translated into euros in the preparation of ASML’s Consolidated

financial statements. Assets and liabilities are translated into euros at the exchange rate on the respective balance

sheet dates, and income and costs are translated into euros based on the average exchange rate for the

corresponding period. The resulting translation adjustments are recorded directly in shareholders’ equity.

New US GAAP accounting pronouncements adopted

We have applied the following accounting pronouncements for the first time for the annual reporting period

commencing 1 January 2025:

•ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Applicable disclosures are included in Note 21 Income taxes.

New US GAAP accounting pronouncements issued but not adopted

The new and amended accounting pronouncements that are issued, but not yet effective, up to the date of issuance

of the Consolidated financial statements, and for which a material effect is expected, are disclosed below. We intend

to adopt these new and amended accounting pronouncements, if applicable, when they become effective.

ASU 2024-03 – Disaggregation of Income Statement Expenses

The standard requires disaggregated disclosure of income statement expenses. It requires disaggregation of certain

expense captions into specified categories in disclosures within the notes to the financial statements. ASU 2024-03 is

effective for fiscal years beginning after December 15, 2026, with early adoption permitted.

We are currently evaluating the effect of this new guidance on our Consolidated financial statements.

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

2. Revenue from contracts with customers

Accounting policy

We measure revenue based on the consideration specified in the contracts with our customers, adjusted for any

significant financing components, and excluding any taxes collected on behalf of third parties. We recognize revenue

when we satisfy a performance obligation by transferring control over a good or service to our customer. We bill our

customers for, and recognize as revenue, charges for shipping and handling costs.

Depending on the contract, we generally obtain a right to payment for our systems through a reservation of a

production slot and/or upon delivery of our systems, with the remaining portion upon final acceptance of our

systems. Right to payment for our service and field options occurs upon delivery or completion of the service unless

described otherwise. The payment is typically due 15–45 days after the aforementioned events. Our contracts

typically include cancellation penalties that provide economic protection from the risk of customer cancellation. The

costs related to our sales are recognized as cost of sales.

We generate revenue from the sale of integrated patterning solutions for the semiconductor industry, which mainly

consist of systems, system-related options and upgrades, other holistic lithography solutions and customer services.

The main portion of our net sales is derived from volume purchase agreements with our customers that have multiple

performance obligations, which mainly include the sales of our systems, system-related options, installation, training,

and extended and enhanced warranties. In our volume purchase agreements we offer customers discounts in the

normal course of sales negotiations. As part of these volume purchase agreements, we may also offer free goods or

services and credits that can be used toward future purchases. Occasionally, systems, with the related extended and

enhanced warranties, installation and training services, are ordered individually. Our sales agreements do not include

a right of return for any reason other than not meeting the agreed-upon specifications.

We account for individual goods and services as separate and distinct performance obligations, including the free or

discounted goods or services, if a product or service is separately identifiable from other items and if a customer can

benefit from it on its own or with other resources that are readily available to the customer. Options to buy goods or

services in addition to the purchase commitment are assessed to determine if they provide a material right to the

customer that they would not have received if they had not entered into this contract. Each option to buy additional

goods or services provided at a discount from the standalone selling price is considered a material right, for which

the likelihood that the option will be exercised is evaluated based on the customer roadmap and their requirements.

The consideration paid for our performance obligations is typically fixed. However, most of our volume purchase

agreements with customers contain some component of variable consideration, typically dependent on the final

volume of systems ordered by the customer or the system performance. Variable consideration is estimated at

contract inception for each performance obligation based on communication with the customer to understand their

requirements and roadmap. This is subsequently updated each quarter, using either the expected value method or

the most likely amount method, whichever is determined to best predict the consideration to be collected from the

customer. Variable consideration is only included in the transaction price if it is considered probable that a significant

revenue reversal will not occur.

In certain scenarios when entering into a volume purchase agreement, free goods or services are provided directly or

through a voucher that can be used on future contracts. Consideration from the contract will be allocated to these

performance obligations and revenue recognized when control transfers based on the nature of the goods or

services provided.

As a practical expedient, we do not record a significant financing component when we expect, at contract inception,

that the period between the transfer of the products or services to the customer and customer payment for the

products or services will be one year or less. In addition, most of our contracts require our customers to pay a down

payment on systems to be shipped. We do not record a significant financing component for down payments, as the

timing difference between when the consideration is paid and when the system is transferred to the customer arises

from reasons other than financing.

The total consideration of the contract is allocated between all distinct performance obligations in the contract

based on their standalone selling prices. The standalone selling prices are determined based on other standalone

sales that are directly observable, when possible. However, for the majority of our performance obligations these are

not available. If no directly observable evidence is available, the standalone selling price is determined using the

adjusted market assessment approach, which requires judgment and is based on multiple factors including, but not

limited to, historical pricing practices and discounting trends for products and services.

For options to buy goods or services that are considered a material right, the discount offered from the standalone

selling price will be allocated from the consideration of the other goods and services in the contract if it is

determined the customer will exercise the option to buy, adjusted for the likelihood that the customer will exercise

the option. Revenue will be recognized in line with the nature of the related goods or services. If it is subsequently

determined that the customer will not exercise the option to buy, or the option expires, revenue will be recognized.

Occasionally we enter into bill-and-hold transactions, where we invoice a customer for a system that is ready for

delivery but not shipped to the customer until a later date, based on the customer’s request. Transfer of control is

determined to have occurred only when there is a substantive reason for the arrangement, the system is separately

identified as belonging to the customer, the good has been accepted by the customer and is ready for delivery, and

we do not have the ability to direct the use of the system.

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

We generate revenue from lessor agreements, which we classify as a sales-type lease when the lease meets any of

the following criteria at lease commencement:

•The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;

•The lease grants the lessee an option to purchase the underlying asset, that the lessee is reasonably certain to

exercise;

•The lease term is for the major part of the remaining economic life of the underlying asset. However, if the

commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not

be used for the purposes of classifying the lease;

•The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not

already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset;

•The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at

the end of the lease term.

For sales-type leases where substantially all the risks and rewards incidental to ownership of an asset are transferred

to the lessee, revenue is recognized at commencement of the lease. If material, the difference between the gross

finance receivable and the present value of the minimum lease payments is initially recognized as unearned interest

and presented as a deduction to the gross finance receivable. Interest income is recognized in the Consolidated

statements of operations over the term of the lease contract using the effective interest method.

Leases that are not a sales-type lease are operating lease arrangements. If we have offered the customer an

operating lease arrangement, the system is included in Property, plant and equipment upon commencement of the

lease. If material, revenue from operating lease arrangements is recognized in the Consolidated statements of

operations on a straight-line basis over the term of the lease contract.

Goods or services	Nature, timing of satisfying the performance obligations and significant<br><br>payment terms
New systems	New systems sales include i-line, KrF, ArF dry, ArF immersion, NXE and EXE-related<br><br>systems, along with the related factory options ordered with the base system, as well<br><br>as metrology and inspection systems.
	Prior to shipment, the majority of our systems undergo a factory acceptance test (FAT)<br><br>in our cleanroom facilities, effectively replicating the operating conditions that will be<br><br>present on the customer’s site, in order to verify whether the integrated system meets<br><br>its standard specifications and any additional technical and performance criteria agreed<br><br>with the customer.
	A system undergoing FAT is shipped only after all contractual specifications are met or<br><br>discrepancies from agreed-upon specifications are waived and customer sign-off is<br><br>received for delivery. Each system’s performance is re-tested through a site<br><br>acceptance test (SAT) after installation at the customer site. We have never failed to<br><br>successfully complete installation of a system at a customer’s premises. Acceptance at<br><br>FAT is considered to be proven for established technologies with a history of<br><br>successful customer acceptances at SAT (equal or better than FAT).
	Transfer of control and recognition of revenue of a system undergoing a FAT, and for<br><br>which customer acceptance at FAT is proven, will occur upon delivery of the system.
	Transfer of control and recognition of revenue of a system not undergoing a FAT, or for<br><br>which customer acceptance at FAT is not proven, will occur after successful installation<br><br>upon customer acceptance of the system at SAT.
	New system sales do not meet the requirements for over time revenue recognition<br><br>because our customers do not simultaneously receive and consume the benefits<br><br>provided by our performance, or control the asset throughout any stage of our<br><br>production process, or the systems are considered to have alternative use.
Used systems	We have no repurchase commitments in our general sales terms and conditions;<br><br>however, we may repurchase systems that we previously manufactured and sold, in<br><br>order to refurbish and resell the system to a different customer. This repurchase<br><br>decision is mainly driven by market demand expressed by other customers.
	Transfer of control of a used system, and recognition of revenue, follow the same logic<br><br>as for our ‘New systems’.
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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Goods or services	Nature, timing of satisfying the performance obligations and significant<br><br>payment terms
Field upgrades and options<br><br>(system enhancements)	Field upgrades and options mainly relate to goods and services that are delivered for<br><br>systems already installed in the customer factories. Certain upgrades require significant<br><br>installation efforts, enhancing an asset the customer controls, and therefore resulting in<br><br>transfer of control over the period of installation. The method of measuring progress is<br><br>based on what best depicts the satisfaction of our obligation in transferring control.<br><br>This is generally based on either the cost incurred method, which is estimated using<br><br>labor hours, or the value transferred method, which is estimated using system<br><br>performance measurements. For the options and other upgrades for which the<br><br>customer receives and consumes the benefit at the moment of delivery, the transfer of<br><br>control and recognition of revenue will occur upon delivery.
	As long as we are not able to make a reliable estimate of the total efforts needed to<br><br>complete the upgrade, we only recognize revenue to cover costs incurred. Margin will<br><br>be realized at the earlier of us being able to make a reliable estimate or completion of<br><br>the upgrade.
New product introduction	If the installation of new products is determined not to be a separate performance<br><br>obligation or if there is not a sufficient established history of acceptance on FAT, a new<br><br>product is considered to be a “new product introduction".
	Transfer of control and revenue recognition for new product introductions occurs after<br><br>successful installation and customer acceptance at SAT. Once there is an established<br><br>history of successful installation and customer acceptance, revenue will be recognized<br><br>consistent with other systems and goods after transfer of control.
Installation	Installation is provided within the selling price of a system. Installation is considered to<br><br>be distinct if it does not significantly modify the system being purchased and the<br><br>customer or a third party could be capable of performing the installation themselves,<br><br>if desired. Transfer of control takes place over the period of installation from delivery<br><br>through SAT, measured on a straight-line basis, as our performance is satisfied evenly<br><br>over this period of time. Installation is not considered to be distinct when recognition of<br><br>revenue related to a system occurs upon customer acceptance of the system at SAT<br><br>after installation is complete.
Warranties	We provide standard warranty coverage on our systems for 12 months, providing labor<br><br>and non-consumable parts necessary to repair our systems during these warranty<br><br>periods. These standard warranties cannot be purchased and do not provide a service<br><br>in addition to the general assurance the system will perform as promised. As a result,<br><br>no revenue is allocated to these standard warranties.
	Both the extended and enhanced warranties on our systems are accounted for as a<br><br>separate performance obligation, with transfer of control taking place over the warranty<br><br>period, measured on a straight-line basis, as this is a stand-ready obligation.		Goods or services	Nature, timing of satisfying the performance obligations and significant<br><br>payment terms
---	---
Time-based licenses and<br><br>related services	Time-based licenses relate to software licenses and the related services which are sold<br><br>for a period of time. The licenses and the related services are not considered to be<br><br>individually distinct, as the support services are integral to the customer’s ability to<br><br>continue to use the software license in the rapidly changing technological environment.<br><br>The transfer of control takes place over the license term, measured on a straight-line<br><br>basis, as our performance is satisfied evenly over this period of time. Payments are<br><br>generally made in installments throughout the license term.
Application projects	Application projects are node transition and consulting projects which at times may be<br><br>provided as free service within a volume purchase agreement. Measuring satisfaction<br><br>of this performance obligation is performed through an input method based on the<br><br>labor hours expended relative to the estimated total labor hours, as this best depicts<br><br>the transfer of control of these kind of services.
Service contracts	Service contracts are entered into with our customers to support our systems used in<br><br>their ongoing operations during the systems life cycle, typically in the form of full-<br><br>service agreements, limited manpower agreements, other labor agreements, parts<br><br>availability or parts usage agreements. These services are for a specified period of time<br><br>and typically have a fixed price. Control transfers over this period of time, measured on<br><br>a straight-line basis, as these are stand-ready obligations. For service contracts where<br><br>the price is not fixed, the transaction price has a variable component that is based on<br><br>the performance of the system.
Billable parts and labor	Billable labor represents maintenance services to our systems installed in the<br><br>customer’s factories while in operation, through purchase orders from our customer.<br><br>Control over these services is transferred to the customer upon receipt of customer<br><br>sign-off.
	Billable parts represent spare parts including optical components relating to our<br><br>systems installed in the customer’s factories while in operation, through purchase<br><br>orders from our customer.
	Billable parts can be:
	•Sold as direct spare parts, for which control transfers point in time upon delivery; or
	•Sold as part of maintenance services, where control transfers point in time upon<br><br>receipt of customer sign-off.
Field projects (relocations)	Field projects represent mainly relocation services. Measuring satisfaction of this<br><br>performance obligation is performed through an input method based on the labor hours<br><br>expended relative to the estimated total labor hours, as this best depicts the transfer of<br><br>control of our service.
OnPulse maintenance	OnPulse maintenance services are provided over a specified period of time on our light<br><br>source systems. Payment is determined by the number of pulses counted from each<br><br>light source system, which is variable. Invoicing is monthly based on the pulses<br><br>counted. Revenue is recognized in line with invoicing using the practical expedient in<br><br>ASC 606-10-55-18.
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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Disaggregation of revenue

Our revenue from contracts with customers, on a disaggregated basis, aligns with our reportable segment disclosures

with the addition of disaggregation of net system sales per technology and per end-use.

Net system sales per technology were as follows:

Year ended December 31	2023		2024		2025
	in units	in € millions	in units	in € millions	in units	in € millions
EXE	—	—	2	465.0	4	1,156.9
NXE	53	9,124.0	42	7,856.4	44	10,445.8
ArF immersion	125	9,017.4	129	9,667.0	131	10,311.4
ArF dry	32	780.2	28	774.4	16	427.0
KrF	184	2,202.5	152	1,991.2	78	1,001.3
I-line	55	278.4	65	369.2	54	307.3
Metrology & Inspection	151	536.1	165	645.5	208	824.6
Total	600	21,938.6	583	21,768.7	535	24,474.3

Net system sales per end-use were as follows:

Year ended December 31	2023		2024		2025
	in units	in € millions	in units	in € millions	in units	in € millions
Logic	439	15,984.7	399	13,195.1	364	16,054.1
Memory	161	5,953.9	184	8,573.6	171	8,420.2
Total	600	21,938.6	583	21,768.7	535	24,474.3

Contract assets and liabilities

The contract assets relate to our right to a consideration in exchange for goods or services delivered, when that right

is conditional on something other than the passage of time. The contract assets are transferred to the receivables

when the receivables become unconditional. The contract liabilities primarily relate to remaining performance

obligations for which consideration has been received for goods and services not yet recognized in revenue, as well

as deferred revenue from goods and services delivered, based on the allocation of the consideration to the related

performance obligations in the contract.

The majority of our customer contracts result in both asset and liability positions. At the end of each reporting period,

these positions are netted on a contract basis and presented as either an asset or a liability in the Consolidated

balance sheets. Consequently, a contract balance can change between periods from a net contract asset balance to

a net contract liability balance in the balance sheet, and vice versa.

Significant changes in the contract assets and the contract liabilities balances during the periods are as follows.

Year ended December 31 (€, in millions)	2024		2025
	Contract assets	Contract liabilities	Contract assets	Contract liabilities
Balance at beginning of the year	240.1	16,266.5	320.6	18,196.2
Transferred from contract assets to accounts<br><br>receivables	(213.2)	—	(294.4)	—
Revenue recognized during the year ending in contract<br><br>assets	275.9	—	649.7	—
Revenue recognized that was included in contract<br><br>liabilities	—	(9,047.5)	—	(11,516.6)
Changes as a result of cumulative catch-up<br><br>adjustments arising from changes in estimates and<br><br>contract modifications	—	(61.3)	—	131.6
Remaining performance obligations for which<br><br>considerations have been received, or for which we<br><br>have an unconditional right to consideration	—	11,483.4	—	14,013.3
Transfer between contract assets and liabilities	17.8	17.8	(235.3)	(235.3)
Other	—	(462.7)	—	(1,216.6)
Total	320.6	18,196.2	440.6	19,372.6
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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

The increase in the net contract liabilities to €18.9 billion as of December 31, 2025, compared to €17.9 billion as of

December 31, 2024, is mainly driven by an increase in down payments for goods and services which will be delivered

in the future. Cumulative catch-up adjustments recognized in our current year’s revenue are due to updated estimates

for system volume, discounts and credits included in our volume purchase agreements. The increase in ‘other’,

compared to 2024, is mainly due to an increase of down payments refunded to customers during 2025. Refund

liabilities outstanding at the end of 2025 are presented as accrued and other liabilities in the Consolidated balance

sheets.

Remaining performance obligations

Our customers generally commit to purchase systems, service or field options through separate sales orders and

service contracts. Typically the terms and conditions of these sales orders come from volume purchase agreements

with our customers which cover up to five years. The revenues for each committed performance obligation are

estimated based on the terms and conditions agreed through the volume purchase agreements.

When revenues will be recognized is mainly dependent on when systems are delivered or installed, as well as when

service projects and field upgrades are performed and completed. All of which is estimated based on contract terms

and communication with our customers, including the customer facility readiness to take delivery of our goods or

services, as well as applicable export control restrictions. The volume purchase agreements may be subject to

modifications or changes in estimates, impacting the amount and timing of revenue recognition for the anticipated

revenues.

As of December 31, 2025, the remaining performance obligations amount to €46.5 billion (December 31, 2024:

€43.3 billion). The remaining performance obligations mainly include orders related to NXT immersion, NXE and EXE

lithography systems. We estimate that 65% (December 31, 2024: 59%) of these anticipated revenues will be

recognized during the next 12 months.

3. Segment disclosure

ASML has one reportable segment, since we are a holistic lithography solution provider, for the development,

production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting

of lithography, metrology and inspection systems. The Chief Operating Decision Maker regularly sets and monitors

goals and boundaries on a consolidated basis to make decisions about resource allocation and assess

performance. ASML’s Chief Operating Decision Maker is the combination of the functions of the CEO and CFO.

Management reporting includes net system sales figures of new and used systems, sales per technology and sales

per end-use. For sales per technology and end-use, see Note 2 Revenue from contracts with customers. The Chief

Operating Decision Maker predominantly uses consolidated US GAAP net income and sales to evaluate income

generated from segment assets in deciding whether to reinvest profits into the segment or invest in other activities,

such as share buybacks or payments of dividends. Consolidated net income and sales are used to monitor budget

versus actual results. The monitoring of budgeted versus actual results is used in assessing performance of the

segment.

All significant segment expenses are presented in the Consolidated statements of operations and are regularly

reviewed by the Chief Operating Decision Maker.

Net system sales for new and used systems were as follows:

Year ended December 31 (€, in millions)	2023	2024	2025
New systems	21,622.4	21,139.7	23,898.6
Used systems	316.2	629.0	575.7
Net system sales	21,938.6	21,768.7	24,474.3

For geographical reporting, total net sales are attributed to the geographic location in which the customers’ facilities

are located. Long-lived assets, consisting of Property, plant and equipment and Right-of-use assets are attributed to

the geographic location in which these assets are located. Total net sales and long-lived assets by geographic region

were as follows:

Year ended December 31<br><br>(€, in millions)	2023		2024		2025
	Total net sales	Long-lived assets	Total net sales	Long-lived assets	Total net sales	Long-lived assets
Japan	613.6	10.4	1,156.0	16.0	1,420.9	20.9
South Korea	6,949.2	148.1	6,408.8	241.6	8,159.6	348.7
Singapore	282.1	5.0	285.0	4.3	608.4	8.4
Taiwan	8,074.6	354.5	4,354.0	473.8	8,337.9	531.7
China	7,251.8	48.6	10,195.1	72.7	9,519.7	70.9
Rest of Asia	3.9	0.2	3.5	0.1	2.7	1.8
Netherlands	25.1	3,783.6	16.6	4,621.4	4.7	5,342.4
EMEA	1,206.8	314.5	1,322.1	443.1	524.3	529.6
United States	3,151.4	1,134.9	4,521.8	1,361.0	4,089.1	1,380.4
Total	27,558.5	5,799.8	28,262.9	7,234.0	32,667.3	8,234.8

In 2025, four customers each individually exceeded 10% of total net sales, totaling €20.0 billion, or 61.2%, of total net

sales. In 2024 four customers and in 2023, two customers exceeded 10% of total net sales, in 2024 totaling €15.2

billion, or 53.8% (2023: €14.9 billion, or 53.9%). Our three largest customers (based on total net sales) accounted for

€1.3 billion, or 35.4%, of accounts receivable and finance receivables at December 31, 2025, compared with €2.6

billion, or 54.1%, at December 31, 2024 and €3.7 billion, or 64.4%, at December 31, 2023.

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

The increase in total net sales of €4.4 billion, or 15.6%, to €32.7 billion in 2025, from €28.3 billion in 2024 was

primarily driven by greater NXE and NXT immersion adoption supported by leading-edge foundry investments for AI

demand, EXE systems being delivered to and installed at more customers, and higher net service and field option

sales. This was partially offset by the decrease in the sales volumes of other DUV lithography systems.

Net service and field option sales increased mainly due to the growing installed base of systems, higher levels of

lithography tool use for certain customers, and more NXE field upgrades.

The Logic sector benefited from positive momentum in AI-related demand across leading-edge foundry and capacity

additions for next nodes. The Memory sector showed a continuation of high demand, fueled by investment in high-

bandwidth memory and DDR5 to support AI-related applications. Taiwan and South Korea recorded the largest

absolute geographic sales growth, driven by capacity expansions to support increasing AI-related demand.

The increase in long-lived assets in the Netherlands during 2025 is primarily related to factory and research facility

expansions in Veldhoven. The increase in the US is primarily related to the expansion of the Wilton factory site, the

increase in South Korea to new office space in Hwaseong and the increase in Taiwan to a new multifunctional

campus in Taipei.

4. Cash and cash equivalents and short-term investments

Accounting policy

Cash and cash equivalents consist primarily of highly liquid investments, such as bank deposits, deposits with

governments and government-related bodies, money market funds and bank accounts readily convertible to known

amounts of cash with insignificant interest rate risk and original maturities to the entity holding the investments for

three months or less at the date of acquisition.

Investments with original maturities at the date of acquisition greater than three months and less than one year are

presented as short-term investments. Fair value changes in these investments, which are not temporary, are

recognized in the Consolidated statements of operations. Short-term investments have immaterial interest rate risk.

Cash and cash equivalents and short-term investments consist of the following:

Year ended December 31 (€, in millions)	2024	2025
Deposits with financial institutions, governments and government-related bodies	4,850.4	5,558.5
Investments in money market funds	6,379.2	6,222.2
Bank accounts	1,506.3	1,135.3
Cash and cash equivalents	12,735.9	12,916.0
Deposits with financial institutions, governments and government-related bodies	5.4	405.9
Short-term investments	5.4	405.9

Cash and cash equivalents mainly increased due to net cash provided by operating activities, driven by net income

and down payments. This increase is partly offset by purchases of property, plant and equipment, purchases of

treasury shares, loans issued and dividend paid.

Deposits with financial institutions, governments and government-related bodies and investments in money market

funds have an investment-grade credit rating as rated by credit rating institutions such as Standard & Poor's,

Moody’s or Fitch. Our cash and cash equivalents are predominantly denominated in euros and to some extent in US

dollars, Taiwanese dollars, South Korean won and Chinese yuan.

The carrying amount of these assets approximates their fair value.

As of December 31, 2025, no restrictions on usage of cash and cash equivalents exist (2024: no restrictions).

5. Accounts receivable, net

Accounting policy

Accounts receivable are initially measured at fair value and are subsequently measured at amortized cost, less

allowance for credit losses, if material. The carrying amount of the accounts receivable approximates the fair value.

We perform ongoing credit evaluations on our customers’ financial condition. We periodically review whether an

allowance for credit losses is needed by considering factors such as historical payment experience, credit quality,

aging of the accounts receivable balances, expected lifetime losses and current economic conditions that may affect

a customer’s ability to pay.

When entering into arrangements to sell our receivable, we derecognize the receivable only when meeting the

derecognition criteria. The criteria require isolation from the seller, granting the buyer the right to pledge or exchange

the receivables and/or ensuring no continuing involvement in the transferred receivables, and legal transfer of control

over the receivable.

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Accounts receivable consist of the following:

Year ended December 31 (€, in millions)	2024	2025
Accounts receivable, gross	4,477.5	3,023.0
Allowance for credit losses	—	—
Accounts receivable, net	4,477.5	3,023.0

The decrease in accounts receivable as of December 31, 2025, compared to December 31, 2024, is mainly due to

increased factoring of receivables and the timing of cash receipts from our customers.

2025

, €6,212.5 million of receivables were sold through factoring arrangements (2024: €2,042.7 million). The

amounts consist of €2,704.8 million (2024: €1,639.9 million) of regular trade receivables and €3,507.7 million (2024:

€402.8 million) of absolute, unconditional, irrevocable accounts receivable for down payments on systems to be

shipped in 2026 and thereafter. These receivables have been derecognized, since the assets were isolated from the

seller, control was transferred to the buyer and there were no restrictions on the buyer related to the factored items.

The fair value of the receivables sold was substantially the same as their carrying value. The cash receipt is treated as

an operating cash flow within the Consolidated statements of cash flows.

6. Finance receivables, net

Accounting policy

Finance receivables consist of receivables in relation to sales-type leases. We perform ongoing credit evaluations of

our customers’ financial condition. We periodically review whether an allowance for credit losses is needed by

considering factors such as historical payment experience, credit quality, the aging of the finance receivables

balances, expected lifetime losses and current economic conditions that may affect a customer’s ability to pay.

The following table lists the components of the finance receivables as of December 31, 2025 and 2024:

Year ended December 31 (€, in millions)	2024	2025
Finance receivables, gross	399.8	626.8
Unearned interest	—	—
Finance receivables, net	399.8	626.8
Current portion of finance receivables, gross	82.6	613.5
Current portion of unearned interest	—	—
Non-current portion of finance receivables, net	317.2	13.3

The increase in finance receivables as of December 31, 2025, compared to December 31, 2024, is the result of

additional systems shipped with a free-use or evaluation period, partially offset by systems being purchased at the

end of their free-use or evaluation period. These sales-type leases mainly support the capacity ramp-up of high-end

systems which are part of the early-insertion life cycle of the technology or system type. It is expected that these

systems will be purchased at the end of the free-use or evaluation period.

Gross profit recognized at the commencement date of the lease for our sales-type leases amounted to €186.4 million

during 2025 (2024: €114.3 million; 2023: €460.9 million).

At December 31, 2025, payments of the finance receivables in the next three years and thereafter are:

(€, in millions)	Amount
2026	613.5
2027	13.3
2028 and thereafter	—
Finance receivables, gross	626.8

In 2025, 2024 and 2023 we did not record any expected credit losses from finance receivables. As of December 31,

2025, the finance receivables were neither past due nor impaired. A finance receivable is considered past due when a

scheduled payment has not been received by its contractual due date.

7. Inventories, net

Accounting policy

Inventory costs approximate costs determined on the first-in first-out basis. Our inventory values comprise

purchased materials, freight expenses, customs, duties, production labor and overhead. The valuation of inventory

includes determining which fixed production overhead costs should be capitalized into inventory based on the

normal capacity of our manufacturing and assembly facilities. During periods when production is below our

established normal capacity level, some of our fixed overhead costs are not included in the cost of inventory;

instead, they are recognized as cost of sales as incurred.

Inventory is valued at the lower of cost or net realizable value, based on assumptions about future demand and

market conditions. Valuation of inventory also requires us to establish reserves for inventory that is defective,

obsolete or in excess. We use our demand forecast to develop manufacturing plans and utilize this information to

compare against raw materials and work-in-progress and finished product levels to determine the amount of

defective, obsolete or excess inventory.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Inventories consist of the following:

Year ended December 31 (€, in millions)	2024	2025
Raw materials	4,911.2	5,298.5
Work-in-process	4,872.3	4,768.5
Finished products	2,019.5	2,135.1
Inventories, gross	11,803.0	12,202.1
Inventory reserves	(911.5)	(772.8)
Inventories, net	10,891.5	11,429.3

The increase in gross inventory in 2025, compared to 2024, is mainly due to increasing raw materials to support our

growing install base as well as increased number of systems bought back from our customers.

A summary of movements in the inventory reserves is as follows:

Year ended December 31 (€, in millions)	2024	2025
Balance at beginning of year	(693.2)	(911.5)
Additions for the year	(554.7)	(469.4)
Effect of changes in exchange rates	(1.7)	6.1
Utilization of the reserve	338.1	602.0
Balance at end of year	(911.5)	(772.8)

The additions for

2025

2024

and 2023 are recorded in cost of sales. The additions for the year mainly relate to

inventory items which became obsolete due to technological developments and design changes.

8. Other assets

Other current and non-current assets consist of the following:

Year ended December 31 (€, in millions)	2024	2025
Advance payments to Carl Zeiss SMT GmbH1	815.8	323.5
Prepaid expenses	555.5	538.0
Derivative financial instruments2	96.5	33.6
VAT receivable	279.1	187.2
Other assets	193.4	350.5
Other current assets	1,940.3	1,432.8
Advance payments to Carl Zeiss SMT GmbH1	599.9	868.4
Prepaid expenses	49.5	46.1
Compensation plan assets	113.1	129.9
Other assets	28.3	12.7
Other non-current assets	790.8	1,057.1

1.For further details on advance payments to Carl Zeiss SMT GmbH, see Note 26 Related parties and variable interest entities.

2.For further details on derivative financial instruments, see Note 25 Financial risk management.

Prepaid expenses mainly include prepaid income taxes of intercompany profit on inventory that has not yet been

realized by ASML of €375.6 million (2024: €380.1 million).

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

9. Equity investments

Accounting policy

Our equity investments do not have a readily determinable fair value and do not qualify for the Net Asset Value

practical expedient, therefore we elect to measure these investments at cost, less any impairment, plus or minus

changes resulting from observable price changes in orderly transactions for identical or similar investments of the

same issuer, if any.

We perform a qualitative assessment considering impairment indicators to evaluate whether investments are

impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, we estimate

the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s

carrying value, we recognize an impairment loss.

To identify observable price changes, we consider relevant transactions that occurred on or before the balance sheet

date.

On September 9, 2025, ASML and Mistral AI announced an investment and partnership agreement for which ASML

invested €1.3 billion in Mistral AI’s Series C funding round as lead investor. This resulted in ASML holding an 11.1%

share on a fully diluted basis in Mistral AI as per December 31, 2025.

The following table shows changes in equity investments:

Year ended December 31 (€, in millions)	2024	2025
Balance at beginning of year	—	—
Additions	—	1,302.2
Disposals	—	—
Other changes	—	18.5
Balance at end of year	—	1,320.7

10. Equity method investments

Accounting policy

Equity investments which we are able to exercise significant influence over but do not control, are accounted for

using the equity method and presented on our Consolidated balance sheets within Equity method investments. The

difference between the cost of our investment and our proportionate share in the carrying value of the investee’s

underlying net assets as of the acquisition date is the basis difference. The basis difference is allocated to the

identifiable assets and liabilities based on their fair value as of the acquisition date (i.e. the date on which we obtain

significant influence), with the excess costs of the investment over our proportional fair value of the identifiable

assets and liabilities being equity method goodwill.

We amortize the basis difference related to the other intangible assets over the estimated remaining useful lives of

these assets that gave rise to this difference. The remaining weighted-average life of the finite-lived intangible assets

acquired is 11.1 years and is amortized using a straight-line method. In-process R&D is initially capitalized at fair

value as an intangible asset with an indefinite life. When the R&D project is complete, it is reclassified as an

amortizable purchased intangible asset and is amortized over its estimated useful life. If the project is abandoned, we

will record the full basis difference charge for the value of the related intangible asset in our Consolidated statements

of operations in the period of abandonment. Equity method goodwill is not amortized or tested for impairment;

instead the equity method investment is tested for impairment whenever events or changes in circumstances

indicate that the carrying value of the investment may not be recoverable.

Under the equity method, after initial recognition at cost, our Equity method investments are adjusted for our

proportionate share in the profit or loss and other comprehensive income of the investee, recognized on a one-

quarter time lag to allow for the timely preparation of financial information and presented within Profit from equity

method investments. Our proportionate share in the profit or loss of the investee is adjusted for any differences in

accounting principles and policies, basis difference adjustments and intra-entity profits. Receipt of dividends

reduces our Equity method investments, which is presented as an operating cash flow based on the nature of the

distributions.

Equity method investments consists of a 24.9% equity interest acquired on June 29, 2017, in Carl Zeiss SMT Holding

GmbH & Co. KG, a limited partnership that owns Carl Zeiss SMT GmbH, our single supplier of optical columns.

For the year ended December 31, 2025, we recorded a profit from Equity method investments of €216.7 million (2024:

€209.8 million) in our Consolidated statements of operations. This profit includes the following components:

•Profit of €322.8 million (2024: €216.4 million) related to our share of Carl Zeiss SMT Holding GmbH & Co. KG’s net

income after accounting policy alignment

•Cost due to basis difference amortization related to intangible assets of €29.7 million (2024: €27.4 million)

•Cost/(Gain) due to intercompany profit elimination of €76.4 million (2024: €(20.8) million)

In 2025, we received a dividend of €320.5 million (2024: €225.4 million) from Carl Zeiss SMT Holding GmbH & Co. KG.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	293
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Carl Zeiss SMT Holding GmbH & Co. KG is a privately held company; therefore, quoted market prices for its stock are

not available.

11. Goodwill

Accounting policy

Goodwill represents the excess of the costs of an acquisition over the fair value of the amounts assigned to assets

acquired and liabilities incurred or assumed of the acquired subsidiary at the date of acquisition. Goodwill on

acquisition of subsidiaries is allocated to reporting units for the purpose of impairment testing. The allocation is

made to those reporting units that are expected to benefit from the business combination in which the goodwill

arose. Goodwill is stated at cost less accumulated impairment losses.

Goodwill is tested for impairment annually or whenever events or changes in circumstances indicate that the carrying

amount of the goodwill may not be recoverable. To determine whether it is necessary to perform the quantitative

goodwill impairment test, we perform a step-zero qualitative assessment annually. If we determine that it is more

likely than not that the fair value of a reporting unit will exceed its carrying amount, we do not perform a quantitative

goodwill impairment test.

Goodwill mainly resulted from the acquisitions of Cymer and HMI. The balance as of December 31, 2025, is €4,588.6

million (2024: €4,588.6 million).

We have identified two reporting units: Reporting Unit ASML and reporting unit Cymer Light Sources. As of

December 31, 2025, the goodwill allocated to reporting unit ASML amounts to €4,126.3 million (2024: €4,126.3

million) and reporting unit Cymer Light Sources amounts to €462.3 million (2024: €462.3 million).

Based on our assessment during the annual goodwill impairment test, we believe it is more likely than not that the fair

values of the reporting units exceed their carrying amounts, and therefore goodwill was not impaired as of

December 31, 2025. The accumulated impairment as of December 31, 2025, is nil (2024: nil).

12. Intangible assets, net

Accounting policy

Intangible assets include brands, intellectual property, developed technology, customer relationships and other

intangible assets not yet available for use. These finite-lived intangible assets are stated at cost, less accumulated

amortization and accumulated impairment losses. Amortization is calculated using the straight-line method based on

the estimated useful lives of the assets.

Finite-lived intangible assets are assessed for impairment annually, or whenever there is an indication that the

balance sheet carrying amount may not be recoverable using cash flow projections for the useful life.

The following table shows the respective useful lives for intangible assets:

Category	Estimated useful life
Brands	20 years
Intellectual property	3–10 years
Developed technology	6–15 years
Customer relationships	8–18 years
Other	2–10 years
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	294
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

As of December 31, 2025, intangible assets consist mainly of brands, intellectual property, developed technology, customer relationships obtained from the acquisitions of Cymer (2013) and HMI (2016) as well as capitalized costs relating

to internal use software:

€, in millions	Brands	Intellectual property	Developed technology	Customer relationships	Other	Total
Cost
Balance at January 1, 2024	38.9	147.1	1,220.2	228.6	260.1	1,894.9
Additions	—	—	—	—	14.3	14.3
Disposals	—	—	—	—	(0.6)	(0.6)
Effect of changes in exchange rates	—	—	—	—	(0.1)	(0.1)
Balance at December 31, 2024	38.9	147.1	1,220.2	228.6	273.7	1,908.5
Additions	—	—	—	—	58.5	58.5
Disposals	—	—	—	—	(11.6)	(11.6)
Effect of changes in exchange rates	—	—	—	—	0.9	0.9
Balance at December 31, 2025	38.9	147.1	1,220.2	228.6	321.5	1,956.3
Accumulated amortization and impairment
Balance at January 1, 2024	16.8	104.1	754.2	134.0	144.1	1,153.2
Amortization	1.9	8.3	74.5	12.6	28.7	126.0
Impairment charges	—	—	—	—	8.0	8.0
Disposals	—	—	—	—	(0.5)	(0.5)
Effect of changes in exchange rates	—	—	—	—	0.5	0.5
Balance at December 31, 2024	18.7	112.4	828.7	146.6	180.8	1,287.2
Amortization	1.9	8.1	74.5	12.6	26.4	123.5
Impairment charges	—	6.5	—	—	—	6.5
Disposals	—	—	—	—	(0.1)	(0.1)
Effect of changes in exchange rates	—	—	—	—	(0.9)	(0.9)
Balance at December 31, 2025	20.6	127.0	903.2	159.2	206.2	1,416.2
Carrying amount
December 31, 2024	20.2	34.7	391.5	82.0	92.9	621.3
December 31, 2025	18.3	20.1	317.0	69.4	115.3	540.1
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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The Consolidated statements of operations include the following amortization charges:

Year ended December 31 (€, in millions)	2023	2024	2025
Cost of sales	102.7	103.8	94.2
R&D costs	19.5	20.8	24.8
SG&A	5.4	1.4	4.5
Total amortization	127.6	126.0	123.5

As of December 31, 2025, the intangible assets not yet available for use, as included in Other, amount to €54.3 million

(

2024

: €11.8 million) and are allocated to reporting unit ASML.

As of December 31, 2025, the estimated amortization expenses for intangible assets for the next five years and

thereafter are as follows:

€, in millions	Amount
2026	116.6
2027	113.6
2028	90.8
2029	59.4
2030	54.4
Thereafter	51.0
Total	485.8

13. Property, plant and equipment, net

Accounting policy

Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses.

Costs of assets manufactured by ASML include direct manufacturing costs, production overhead and interest costs

incurred for qualifying assets during the construction period. Property, plant and equipment are depreciated on a

straight-line basis in the Consolidated statements of operations over their estimated useful lives, except for land,

which is not depreciated. Government grants related to assets are recognized when the grant conditions have been

substantially met. Government grants are presented as a deduction of the carrying amount of the asset they relate to

and recognized in the Consolidated statements of operations on a systematic basis over the useful life of the asset.

Evaluation systems leased to our customers under an operating lease are capitalized as Property, plant and

equipment at cost and depreciated over the respective lease term. Leased assets that are returned to ASML upon

expiration of the lease term are either taken back into Property, plant and equipment, as they will be used internally

by D&E or transferred back to Inventories to be reworked and sold.

The carrying values of prototypes, tooling and equipment that are intended to be sold, but first internally utilized for

R&D purposes, are reclassified from Inventories to Property, plant and equipment and depreciated while being

internally used. When no longer required for R&D activities, the assets’ carrying value is reclassified back to

Inventories and reworked to make them ready for sale to our customers. These transfers are reported as Net non-

cash movements to/from inventories in our Property, plant and equipment movement schedule.

Property, plant and equipment is assessed for impairment whenever there is an indication that the carrying amount

may not be recoverable using cash flow projections for the useful life.

The following table shows the respective useful lives for Property, plant and equipment:

Category	Estimated useful life
Buildings	5–45 years
Machinery and equipment	1–7 years
Leasehold improvements	1–10 years
Furniture, fixtures and other	3–5 years
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	296
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Property, plant and equipment consists of the following:

€, in millions	Land and buildings	Machinery and equipment	Leasehold improvements	Furniture, fixtures and other	Total
Cost
Balance at January 1, 2024	4,323.4	3,690.0	478.5	587.9	9,079.8
Additions	1,120.1	756.5	116.9	65.8	2,059.3
Disposals	(3.2)	(45.6)	(0.3)	(7.6)	(56.7)
Net non-cash movements to/from Inventories	—	(40.0)	—	—	(40.0)
Effect of changes in exchange rates	8.1	(1.7)	(0.6)	12.5	18.3
Balance at December 31, 2024	5,448.4	4,359.2	594.5	658.6	11,060.7
Additions	1,029.4	474.2	43.3	49.3	1,596.2
Disposals	(3.9)	(59.3)	(5.0)	(6.2)	(74.4)
Net non-cash movements to/from Inventories	—	328.0	—	—	328.0
Effect of changes in exchange rates	(52.8)	(28.9)	(3.8)	(4.7)	(90.2)
Balance at December 31, 2025	6,421.1	5,073.2	629.0	697.0	12,820.3
Accumulated depreciation and impairment
Balance at January 1, 2024	1,243.1	1,605.6	361.5	376.4	3,586.6
Depreciation	169.4	506.8	38.4	72.7	787.3
Impairment charges	3.3	11.7	0.2	1.9	17.1
Disposals	—	(38.5)	—	(7.5)	(46.0)
Net non-cash movements to/from Inventories	—	(136.4)	—	—	(136.4)
Effect of changes in exchange rates	4.0	0.4	0.4	0.5	5.3
Balance at December 31, 2024	1,419.8	1,949.6	400.5	444.0	4,213.9
Depreciation	212.0	580.7	51.3	72.0	916.0
Impairment charges	5.6	5.9	—	—	11.5
Disposals	(3.2)	(40.2)	(4.6)	(6.2)	(54.2)
Net non-cash movements to/from Inventories	—	(109.1)	—	—	(109.1)
Effect of changes in exchange rates	(14.7)	(29.1)	(3.9)	(3.9)	(51.6)
Balance at December 31, 2025	1,619.5	2,357.8	443.3	505.9	4,926.5
Carrying amount
December 31, 2024	4,028.6	2,409.6	194.0	214.6	6,846.8
December 31, 2025	4,801.6	2,715.4	185.7	191.1	7,893.8
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	297
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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

As of December 31, 2025, the carrying amount includes assets under construction of €1,771.0 million (2024: €1,729.7

million) primarily consisting of buildings, as well as machinery and equipment.

As of December 31, 2025, the carrying amount of land amounts to €377.1 million (2024: €304.3 million).

The additions in

2025

in land and buildings, as well as furniture, fixtures and other mainly relate to factory expansions

in Wilton and Veldhoven, research facility expansions in Veldhoven, office space in Hwaseong and multifunctional

campus in Taipei, all in order to support our continued growth.

The additions in

2025

in machinery and equipment mainly relate to the upgrade and expansion of production tooling

to support the growth of our business, as well as investments in prototypes of new technologies.

The additions in

2025

in leasehold improvements mainly relate to installation of cleanrooms and warehouses for

leased properties in both the Netherlands, US and China.

The Consolidated statements of operations include the following depreciation charges:

Year ended December 31 (€, in millions)	2023	2024	2025
Cost of sales	330.4	398.4	532.1
R&D costs	236.2	340.5	353.2
SG&A	39.0	48.4	30.7
Total depreciation	605.6	787.3	916.0

14. Right-of-use assets and lease liabilities

Accounting policy

We determine whether an arrangement contains a lease at inception. Leases are included in Right-of-use assets,

Accrued & other current liabilities and Accrued & other non-current liabilities in our Consolidated balance sheets.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent

our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized

at commencement date based on the present value of lease payments over the lease term. As our leases do not

provide an implicit rate, we use our incremental borrowing rate based on the information available at

commencement date in determining the present value of lease payments. The Right-of-use assets include any lease

payments made at or before the commencement date and are reduced by lease incentives. Our Right-of-use asset

and lease liability valuation may include options to extend or terminate the lease when it is reasonably certain that we

will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components. The lease components are accounted for

separately from non-lease components. The allocation of the consideration between lease and non-lease

components is based on the relative standalone prices of lease components included in the lease contracts.

Right-of-use assets consist of the following leases:

Year ended December 31 (€, in millions)	2024	2025
Properties	333.7	296.6
Cars	7.6	9.4
Warehouses	42.6	29.6
Other	3.3	5.4
Right-of-use assets	387.2	341.0

ASML owns the majority of real estate for manufacturing, supply chain management, R&D and general administration

at our headquarters in Veldhoven, the Netherlands. Our other locations worldwide, mostly related to customer

support, are mainly leased. The total right-of-use assets related to properties includes a finance lease arrangement for

land of €32.0 million per December 31, 2025 and €32.0 million per December 31, 2024.

The right-of-use assets decreased in 2025 compared to 2024 mainly due to amortization, partially offset by additions

in properties and in warehouses.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	298
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Lease liabilities are split between current and non-current and are presented as part of Accrued and other liabilities.

The non-current portion mainly consists of properties and warehouses. From the total lease liability €16.5 million

(December 31, 2024: €16.9 million) relates to a finance lease while the rest relates to operating leases. For the year

ended December 31, 2025, Lease liabilities decreased by €54.6 million, mainly due to lease payments during 2025.

Year ended December 31 (€, in millions)	2024	2025
Current	68.6	60.8
Non-current	237.4	190.6
Lease liabilities	306.0	251.4

The Consolidated statements of operations include the following lease expenses:

Year ended December 31 (€, in millions)	2023	2024	2025
Properties	40.4	50.2	46.6
Cars	5.9	6.1	5.7
Equipment	—	—	—
Warehouses	5.9	15.0	14.3
Other	0.8	2.2	3.8
Lease expenses	53.0	73.5	70.4

The total cash flows relating to the leases are as follows:

Year ended December 31 (€, in millions)	2023	2024	2025
Total cash flows	148.2	96.3	88.7

The weighted average remaining lease term and weighted average discount rate related to the leases are as follows:

Year ended December 31	2023	2024	2025
Weighted average remaining lease term (months)	365	296	296
Weighted average discount rate (%)	2.5%	3.0%	2.9%

15. Accrued and other liabilities

Accrued and other liabilities consist of the following:

Year ended December 31 (€, in millions)	2024	2025
Costs to be paid1	536.1	498.6
Personnel-related items	1,599.6	1,734.0
Derivative financial instruments2	113.6	93.0
Lease liabilities3	306.0	251.4
Provisions	100.8	129.4
Standard warranty reserve	158.9	188.5
Refund liability	309.4	76.2
Other	21.7	28.4
Accrued and other liabilities	3,146.1	2,999.5
Less: non-current portion of accrued and other liabilities	459.5	432.2
Current portion of accrued and other liabilities	2,686.6	2,567.3

1.Costs to be paid includes an amount payable to related parties. For further details, see Note 26 Related parties and variable interest entities.

2.For further details on derivative financial instruments, see Note 25 Financial risk management.

3.For further details on lease liabilities, see Note 14 Right-of-use assets and lease liabilities.

Costs to be paid represent ASML’s estimate of contractual liabilities as of the reporting date, to be settled in a future

period, based upon the underlying terms and conditions. Costs to be paid as of December 31, 2025, include VAT

payables and accrued costs for unbilled services provided by suppliers, including contracted labor, outsourced

services and consultancy.

Personnel-related items primarily consist of accrued short-term incentive (STI) bonus plans, vacation days, pension

premiums, wage tax, and vacation allowances. The year-over-year increase in these accruals was mainly driven by an

increase in the average salary per FTE, reflecting our ongoing investment in talent to support the growth and

expansion of our business.

The refund liability represents the amount of consideration received from customers to which ASML does not expect

to be entitled. Refund liabilities do not meet the definition of a contract liability.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	299
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The standard warranty reserve is based on historical product performance and total expected costs to fulfill our

warranty obligation. Annually, we assess and update the standard warranty reserve based on the latest actual

historical warranty costs and expected future warranty costs. Total movements in standard warranty reserve for the

years 2025 and 2024 are as follows:

Year ended December 31 (€, in millions)	2024	2025
Balance at beginning of year	142.3	158.9
Additions for the year	210.0	237.9
Utilization of the reserve	(193.5)	(207.9)
Effect of exchange rates	0.1	(0.4)
Balance at end of year	158.9	188.5

16. Long-term debt, short-term borrowings, interest and other, net

Accounting policy

Long-term debt represents debt issued privately without registration with a government authority and is payable to

others under the terms of a signed agreement. Long-term debt is initially recognized at fair value and subsequently

measured at amortized cost. Debt is qualified as long-term debt as long as the group has an unconditional right to

defer settlement of the liability for at least 12 months after the reporting period.

Short-term borrowings comprise commercial paper issued under the Euro Commercial Paper (ECP) program. We

classify borrowings as short-term when the group does not have an unconditional right to defer settlement of the

liability for at least 12 months after the reporting period. Short-term borrowings are initially recognized at the amount

of proceeds received and subsequently measured at amortized cost using the effective interest method. Interest on

ECP notes is typically prepaid and deducted from the proceeds at issuance, resulting in a discounted carrying

amount. The amortization of this discount is recognized as interest expense in the Consolidated statements of

operations over the term of the note. Net proceeds from the issuance of borrowings and the repayment of

commercial paper are presented on a gross basis within the cash flows from financing activities in the Consolidated

statements of cash flows.

Interest accruals and payments relating to long-term debt are accounted for as part of Accrued and other liabilities.

Interest and other costs are accrued and recognized with the passage of time over the agreed term, regardless of

when the actual payment of interest or other costs occurs.

Long-term debt consists of the following (amounts for bonds represent carrying amount, not the principle amount):

Year ended December 31 (€, in millions)	2024	2025
€1,000 million 1.375% senior notes issued July 2016 and principal due July 7th 2026<br><br>interest annually payable on July 7th	967.7	991.3
€750 million 1.625% senior notes issued November 2016 and principal due May 28th<br><br>2027 interest annually payable on May 28th	720.1	731.5
€750 million 0.250% senior notes issued February 2020 and principal due February 25th<br><br>2030 interest annually payable on February 25th	744.8	745.8
€750 million 0.625% senior notes issued May 2020 and principal due May 7th 2029<br><br>interest annually payable on May 7th	748.3	748.7
€500 million 2.250% senior notes issued May 2022 and principal due May 17th 2032<br><br>interest annually payable on May 17th	478.2	465.5
€1,000 million 3.500% senior notes issued June 2023 and principal due December 6th<br><br>2025 interest annually payable on December 6th	1,010.3	—
Debt acquired from Berliner Glas (ASML Berlin GmbH)	18.2	16.4
Long-term debt	4,687.6	3,699.2
Less: current portion of long-term debt	1,010.3	990.2
Non-current portion of long-term debt	3,677.3	2,709.0

All senior notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole

premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on the maturity date.

Our obligations to make principal repayments under our senior notes, short-term borrowings and other borrowing

arrangements excluding interest expense as of December 31, 2025, are as follows:

€, in millions	Amount
2026	1,694.8
2027	751.8
2028	1.8
2029	751.8
2030	751.8
Thereafter	507.3
Total debt maturities	4,459.3

Eurobonds

The following table summarizes the carrying amount of our outstanding Eurobonds, including the fair value of interest

rate swaps used to hedge the change in the fair value of the Eurobonds:

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Year ended December 31 (€, in millions)	2024	2025
Amortized cost amount	4,736.9	3,740.3
Fair value interest rate swaps1	(67.5)	(57.5)
Carrying amount	4,669.4	3,682.8

1.The fair value of the interest rate swaps excludes accrued interest.

We use interest rate swaps to minimize the net interest exposure for the group by aligning the interest terms of the

available cash and the interest-bearing debt. The fair value changes of these interest rate swaps are recorded on the

Consolidated balance sheets under Current and non-current accrued and other liabilities, as well as Current and non-

current other assets, and the carrying amount of the Eurobonds is adjusted for these fair value changes.

The following table summarizes the estimated fair value of our Eurobonds:

Year ended December 31 (€, in millions)	2024	2025
Principal amount	4,750.0	3,750.0
Carrying amount	4,669.4	3,682.8
Fair value1	4,561.8	3,590.8

1.Source: Bloomberg Finance LP.

The fair value of our Eurobonds is estimated based on quoted market prices as of December 31, 2025. The fair value

deviates from the principal amount, due to changes in market interest rates and credit spreads since the issue of our

Eurobonds, which carry a fixed coupon interest rate.

Debt acquired from Berliner Glas (ASML Berlin GmbH)

The loan of Berliner Glas (ASML Berlin GmbH) is a mortgage loan of €16.4 million with an annual interest rate of 0.5%,

repayable in 2034. Debt decreased compared to

2024

, due to repayments made in

2025

Lines of credit

We maintain an available committed credit facility of €1.5 billion as of December 31, 2025 (2024: €1.5 billion), with a

group of banks. No amounts were outstanding under the committed credit facility at the end of

2025

and

2024

. This

facility has a maturity date of May 2030 with one uncommitted one year extension option extending the maturity to

Outstanding amounts under this credit facility will bear an interest of Euribor plus a margin. The margin

depends on our credit rating. In addition, there is a fee based on the utilization percentage of the facility.

ASML also has non-committed lines of credit available. These facilities provide ASML with the ability to request short-

term unsecured loans from time to time for an aggregate amount not exceeding €3.0 billion. No amounts have been

drawn under these lines of credit. Outstanding amounts under the non-committed facility will bear interest based on

market conditions at the moment of drawdown.

Furthermore, ASML has non-committed guarantee facilities under which guarantees in the ordinary course of

business, such as customs or rental guarantees, can be provided to third parties. These facilities also cover standby

letters of credit, corporate credit cards and foreign exchange limits and are available in Euro, US dollar, Japanese yen

and Taiwanese dollar. As of December 31, 2025 amounts of €40.5 million (2024: €44.1 million), JPY 10,200.0 million

(2024: JPY 4,825.0 million) and TWD 268.7 million (2024: TWD 553.7 million) were utilized under these facilities.

Short-term borrowings

The €1.5 billion ECP program allows ASML to issue commercial paper up to 364 days in tenor, in a number of

currencies. As of December 31, 2025, we had €693.0 million (

2024:

nil) outstanding under our €1.5 billion ECP

program and the carrying amount was €691.7 million (2024: nil) with a weighted-average interest rate of 2.03%.

Interest and other, net

Interest and other, net consists mainly of interest income and interest expenses. In

2025

, the interest income

component is €223.0 million (

2024

: €182.4 million;

2023

: €193.9 million). Income mainly relates to interest income on

cash and cash equivalents. In

2025

, the interest expense component is €118.3 million (

2024

: €162.6 million;

2023

€152.7 million). The expenses mainly relate to interest expense on our short-term borrowings, Eurobonds and interest

rate swaps.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

17. Commitments and contingencies

Commitments

We have various contractual obligations, some of which are required to be recorded as liabilities in our Consolidated

balance sheets, including long-term debt, short-term borrowings and lease commitments. Other contractual

obligations, including unconditional purchase obligations, are generally not required to be recognized as liabilities but

are required to be disclosed.

Our contractual obligations as of December 31, 2025, can be summarized as follows:

Payments due by period (€, in billions)	Total	1 year	2 years	3 years	4 years	5 years	>5 years
Long-term debt and short-term borrowings<br><br>obligations, including interest1	4.6	1.7	0.8	—	0.8	0.8	0.5
Lease obligations2	0.3	0.1	0.1	—	—	—	0.1
Purchase obligations	12.7	9.6	1.7	1.0	0.1	0.1	0.2
Total contractual obligations	17.6	11.4	2.6	1.0	0.9	0.9	0.8

1.Long-term debt obligations mainly relate to principal amounts and interest payments of our Eurobonds. For the amounts excluding interest

expenses and for further details, see Note 16 Long-term debt, short-term borrowings, interest and other, net.

2.For further details, see Note 14 Right-of-use assets and lease liabilities.

We have purchase obligations toward suppliers in the ordinary course of business which mainly relate to goods and

services for our operations and obligations relating to further expansion and upgrade of our facilities. The general

terms and conditions of the agreements relating to the major part of our purchase obligations as of December 31,

2025, contain clauses that enable us to delay or cancel delivery of ordered goods and services up to the dates

specified in the purchase agreements, in line with the timing of future sales. The terms and conditions that we

normally agree with our suppliers give us additional flexibility to adapt our purchase obligations to our requirements in

light of the cyclicality and technological developments inherent in the industry in which we operate.

Contingencies

ASML is subject to proceedings, litigation and other actual or potential claims, including those related to alleged or

potential violation of laws and regulations. ASML’s customers may be subject to claims of infringement from third

parties alleging that the ASML equipment used by those customers in the manufacture of semiconductor products,

and/or the methods relating to use of the ASML equipment, infringes one or more patents issued to those third

parties. If these claims were successful, ASML could be required to indemnify such customers for some or all of the

losses incurred or damages assessed against them as a result of that infringement.

In connection with any proceedings and claims, our management evaluates, based on the relevant facts and legal

principles, the likelihood of an unfavorable (or favorable) outcome, and whether the amount of the loss (or gain) can be

reasonably estimated. Judgment is required in these evaluations, including judgments regarding the validity of

asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings,

however, is subject to a number of factors beyond our control, most notably the uncertainty associated with

predicting decisions by courts and administrative agencies. In addition, estimates of the potential costs (or gains)

associated with legal and administrative proceedings frequently cannot be subjected to any sensitivity analysis, as

damage estimates or settlement offers by claimants may bear little or no relation to the eventual outcome. Finally,

in any particular proceeding, we may agree to settle or to terminate a claim or proceeding in which we believe that

we would ultimately prevail where we believe that doing so, when taken together with other relevant commercial

considerations, is more effective than engaging in an expensive and protracted litigation, the outcome of which

is uncertain.

As of December 31, 2025, management has determined that ASML does not have any material contingencies which

are considered probable or reasonably possible for each year presented in our Consolidated balance sheets.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

18. Personnel expenses and employee information

Personnel expenses for all payroll employees were as follows:

Year ended December 31 (€, in millions)	2023	2024	2025
Wages and salaries	4,447.0	5,001.2	5,460.2
Social security expenses	410.5	468.4	516.6
Pension and retirement expenses	348.9	395.2	433.7
Share-based payments	134.8	172.6	202.3
Personnel expenses	5,341.2	6,037.4	6,612.8

The continued increase in personnel expenses is primarily attributable to higher average wages and salaries per FTE,

reflecting our ongoing investment in talent to support the growth and expansion of our business.

Short-term incentive bonus plans

We offer annual performance-based STI bonus plans to our employees. Bonus payouts vary depending on job grade,

plan type, and both company and individual performance. For employees excluding the Board of Management, the

payout average is 17% of annual base gross salary. The 2025 STI bonus is accrued for as part of Accrued and other

liabilities in the Consolidated balance sheets and will be paid in the first quarter of 2026.

The STI bonus expenses for the (former) Board of Management and other employees were as follows:

Year ended December 31 (€, in millions)	2023	2024	2025
Board of Management	6.0	5.3	7.3
Former Board of Management1	—	1.0	—
Other employees	712.6	816.8	951.0
Total STI bonus expenses	718.6	823.1	958.3

1.On April 24, 2024, Peter T.F.M. Wennink and Martin A. van den Brink stepped down from their roles as Presidents of ASML and are, therefore,

presented as former Board of Management in 2024.

The average number of payroll employees in FTEs was:

Average number of payroll employees in FTEs	2023	2024	2025
Netherlands	19,876	21,811	22,801
Worldwide (including Netherlands)	38,805	41,697	43,267

The total number of payroll and temporary employees as of December 31 in FTE per sector was:

Year ended December 31 (in FTE)	2023	2024	2025
Customer Support and Sales	10,790	10,344	10,235
Manufacturing and Supply Chain Management	9,954	11,341	11,124
Strategic Supply Management	2,033	1,965	1,929
General and Administrative	4,035	4,385	4,473
Research and Development	15,604	15,992	16,448
Total	42,416	44,027	44,209
Less: Temporary employees	2,107	1,241	689
Payroll employees	40,309	42,786	43,520
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	303
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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

19. Employee benefits

Accounting policy

Contributions to defined contribution retirement benefit plans are recognized as an expense when employees have

rendered service entitling them to the contributions. Payments made to state-managed retirement benefit schemes

are dealt with as payments to defined contribution plans where our obligations under the plans are equivalent to

those arising in a defined contribution retirement benefit plan.

We maintain one multi-employer union-defined benefit pension plan and various other defined contribution pension

plans covering a substantial number of our employees. ASML accounts for its multi-employer defined benefit plan as

if it were a defined contribution plan for the following reasons:

•ASML is affiliated to an industry-wide pension fund and uses the pension scheme in common with other

participating companies.

•Under the regulations of the pension plan, the only obligation these participating companies have toward the

pension fund is to pay the annual premium liability. Participating companies are under no obligation whatsoever

to pay off any deficits the pension plan may incur. Nor have they any claim to any potential surpluses.

Our pension and retirement expenses for all employees for the years ended December 31, 2025, 2024 and 2023, were:

Year ended December 31 (€, in millions)	2023	2024	2025
Pension plan based on multi-employer union plan	244.4	276.3	296.6
Pension plans based on defined contribution and other plans	104.5	118.9	137.1
Pension and retirement expenses	348.9	395.2	433.7

The accrued pension premiums were €75.8 million as of December 31, 2025, and €75.9 million as of December 31, 2024.

Multi-employer union plan

In accordance with the collective bargaining agreements effective for the industry in which we operate, which have no

expiration date, there are 23,711 eligible payroll employees in the Netherlands (54.5% of our total payroll FTEs) that

participate in a multi-employer union plan. Our net periodic pension cost for this multi-employer union plan for any

period is the amount of the required employer contribution for that period.

This multi-employer union plan is managed by PME (Stichting Pensioenfonds van de Metalektro) and this plan covers

approximately 1,618 companies and approximately 184,847 contributing members. Every participating company

contributes a premium that is based on the same contribution rate. This contribution rate can fluctuate yearly based

on the coverage ratio of the multi-employer union plan. For 2025, the contribution rate was 28.0% (2024: 28.0%;

2023: 28.0%). For 2025, our contribution to this multi-employer union plan (including the premiums paid by

employees) was 19.5% (2024: 18.2%; 2023: 18.3%) of the total contribution to this plan. For 2026, we expect to

contribute around €437.0 million to this plan (including the premiums paid by employees). The pension rights of each

employee are based upon the employee’s average salary during employment.

The PME multi-employer union plan monitors its risks on a global basis and is subject to regulation by Dutch

governmental authorities. By Dutch law (the Dutch Pension Act), a multi-employer union plan must be monitored

against specific criteria, including the coverage ratio of the plan’s assets to its obligations. The coverage ratio is

calculated by dividing the fund’s capital by the total sum of pension liabilities and is based on actual market interest

rates. The legally required minimal coverage ratio is 104.3% (2024: 104.3%). Compared to the previous year, the

coverage ratio of PME increased to 125.3% as per December 31, 2025 (December 31, 2024: 113.1%), which is higher

than the intended minimum coverage ratio of 118.1%. ASML has no obligation to pay any deficits the pension fund

may incur, nor does it have any claim to any potential surpluses.

Other defined contribution and pension plans

We also participate in several other defined contribution pension plans (inside and outside the Netherlands), with our

expenses for these plans equaling the employer contributions made in the relevant period.

Deferred compensation plans

For more senior US employees we have a non-qualified deferred compensation plan that allows them to defer a

portion of their salary, bonus and commissions. The plan allows us to credit additional amounts to the participants’

account balances. The participants divide their funds among the investments available in the plan. Participants elect

to receive their funds in future periods after the earlier of their employment termination or their withdrawal election,

at least three years after deferral. Expenses were close to nil relating to this plan in 2025, 2024 and 2023. As of

December 31, 2025, our liability under deferred compensation plans was €127.7 million (2024: €111.8 million).

The related compensation plan assets are €129.9 million (2024: €113.1 million).

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Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

20. Share-based compensation

ASML has the following share-based compensation plans in place for its employees:

•Long-term incentive (LTI) bonus plans

•Option plans

•Employee Share Purchase Plan

Long-term incentive bonus plans

Our long-term incentive (LTI) bonus plans are governed by the Employee Umbrella Share Plan, effective since January

1, 2014, and is applicable to all employees. The primary objective of this plan is to attract, reward, and retain qualified

and experienced professionals in a competitive international labor market. Equity incentives granted under this plan

typically have a vesting period of 2.5-to-3 years and are subject to service and/or performance criteria.

Employees may be granted either service-based or performance-based share plans. Under service-based plans,

shares are granted at the start and vest after a defined service period. Performance-based plans follow a similar

structure but are conditionally granted and subject to company-specific performance criteria, which may include both

market-based and non-market-based elements. These shares vest upon completion of the service period and

achievement of the performance targets at the vesting date.

The General Meeting approved the adoption of the most recent Remuneration Policy for the Board of Management,

including the number of shares to be issued. The updated policy outlines the target and maximum levels of the long-

term incentive plans, associated performance measures, and payout zone percentages. Remuneration policies for

employees are approved by the Board of Management. Additionally, the General Meeting authorized the Board of

Management to issue and grant ordinary shares, set limits on restricting or excluding shareholders’ pre-emption

rights, and repurchase ordinary shares on behalf of the company within defined parameters.

The table below outlines the performance criteria and their respective weightings for the LTI performance plans

granted in 2025.

LTI performance plan criteria	Market/Non-market element	Weight
Relative TSR	Market	25%
Strategic value drivers	Non-market	35%
Technology Leadership Index	Non-market	20%
ESG measures	Non-market	20%
Total		100%

Following the US executive order 14173, the non-financial ESG performance metrics were modified as follows:

•For the employees based in the US, the gender diversity performance measures are omitted, and an increased

weighting is applied on the Employee engagement and Inclusion score (13.33%), and

•For the employees outside the US, the gender diversity performance measures are calculated excluding US

employees.

All employees who are eligible for the LTI plan 2023-2025 and 2024-2026 will be impacted by this modification. There

are no incremental fair value and no incremental compensation costs arising from the modifications.

Accounting policy

The fair value of the market-based element is measured at the grant date incorporating the expected vesting and

expected value at vesting, using a tailored Monte Carlo simulation model. The fair value of the service plans and the

non-market-based elements of the performance plans is the share price at grant date less the present value of

expected dividends during the vesting period, as participants are not entitled to dividends payable during the vesting

period. The likelihood of the conditions being met for service and non-market performance plans is assessed as part

of the company’s best estimate of the number of equity instruments that will ultimately vest.

Participants are entitled to a conditional grant of company shares upon awarding. Performance plans are subject to

cliff vesting and are accounted for on a straight-line basis. Service-only plans are subject to graded vesting. Each

installment of the plan is therefore accounted as a separate grant with a separate fair value. This means that each

installment will be separately measured and attributed to expense over the related vesting period. Expenses for the

market-based element are recognized during vesting at a fixed vesting level (as the vesting expectation is

incorporated in the fair value) provided that all other performance conditions are met. Expenses for the non-market-

based elements and service plans are recognized during vesting at expected vesting levels, which are updated

during the vesting period as necessary, with a final update/adjustment at vesting date. All share-based remuneration

expenses for equity-settled awards are recognized as personnel expense, with a corresponding entry in equity,

during the vesting period of the award. Share-based remuneration expenses are included in the same income

statement line or lines in the functional grouped Consolidated statements of operations as the compensation paid to

the employees receiving the stock-based awards.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The most important assumptions for the calculation of the fair value of shares for the LTI performance plans, which

include market-based performance criteria, are set out in this table:

Year ended December 31	2023	2024	2025
Share price in € at grant date	620.1	707.1	580.9
Expected volatility ASML	46.2%	40.0%	41.7%
Average volatility of the peer group	50.0%	43.3%	46.6%
Vesting period	2.9 years	2.9 years	2.7 years
Dividend yield	0.9%	0.7%	0.9%
Risk free interest rate (Eurozone)	2.4%	2.4%	1.8%
Risk free interest rate (US)	3.9%	4.2%	3.9%

An overview of the incurred and expected expenses for the LTI plans are set out in the following table:

Year ended December 31 (€, in millions)	2023	2024	2025
Incurred expenses	134.8	172.6	202.3
Expected expenses of conditionally granted plans in future periods	187.2	246.1	215.0
Weighted average period for recognizing these expected expenses	1.6 years	1.5 years	1.4 years
Recognized income tax benefit (excluding excess income tax benefits)	16.3	28.2	32.0

Details with respect to shares granted and vested during the year are set out in the following table:

	-denominated		-denominated
Year ended December 31	2023	2025	2023	2025
Total fair value of shares vested during the year (in millions)	175.5	139.4	127.0	166.6
Weighted average fair value of shares granted	587.42	636.49	624.10	660.67

All values are in Euros.

A summary of the status of conditionally outstanding shares as of December 31, 2025, and changes during the year

ended December 31, 2025, is presented below:

	-denominated	-denominated
	Numberof shares	Numberof shares
Conditional shares outstanding at January 1, 2025	280,353	410,680
Granted	261,198	279,674
Vested	(203,871)	(229,822)
Forfeited	(6,314)	(13,191)
Conditional shares outstanding at December 31, 2025	331,366	447,341

All values are in Euros.

Option plans

Since 2017, we no longer grant any options, but there are still outstanding options which may be exercised by

employees.

Accounting policy

The grant-date fair value of stock options was estimated using a Black–Scholes option valuation model. This Black–

Scholes model required the use of assumptions, including expected share price volatility, the estimated life of each

award and the estimated dividend yield. The risk-free interest rate used in the model is determined, based on an

index populated with euro-denominated European government agency bonds with high credit ratings and with a life

equal to the expected life of the equity-settled share-based payments. Our option plans typically vest over a three-

year service period, with any unexercised stock options expiring 10 years after the grant date. Options granted have

fixed exercise prices equal to the closing price of our shares listed at Euronext Amsterdam on grant date. The

purchase of shares against the exercise price is settled with the employees involved through deductions on their

salary and the issuance of shares upon exercising the stock options is deducted from our treasury shares.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Details with respect to stock options exercised and outstanding are set out in the following table:

	-denominated		-denominated
Year ended December 31	2023	2025	2023	2025
Weighted average share price at stock option exercise	613.03	722.84	678.41	840.14
Aggregate intrinsic value of exercised stock options (in millions)	8.1	8.8	4.8	6.8
Weighted average remaining contractual term of exercisable<br><br>options (in years)	1.48	0.32	1.43	0.30
Aggregate intrinsic value of exercisable stock options (in millions)	19.7	4.6	15.9	4.5
Aggregate intrinsic value of outstanding stock options (in millions)	19.7	4.6	15.9	4.5

All values are in Euros.

The number and weighted average exercise prices of stock options as of December 31, 2025, and changes during the

year then ended are presented below:

	-denominated	-denominated
	Numberof options	Numberof options
Outstanding, January 1, 2025	19,336	13,734
Granted	—	—
Exercised	(13,779)	(9,090)
Forfeited	—	—
Expired	(78)	(1)
Outstanding, December 31, 2025	5,479	4,643
Exercisable, December 31, 2025	5,479	4,643

All values are in Euros.

Details with respect to stock options exercised in the relevant year and outstanding stock options as of December 31,

2025, are set out in the following table:

-denominated		-denominated
Range of exercise prices (in )	Weighted average<br><br>remaining<br><br>contractual term of<br><br>outstanding (years)	Range of exercise prices (in )	Weighted average<br><br>remaining<br><br>contractual term of<br><br>outstanding (years)
80–90	0.19	80–90	0.00
90–100	0.56	90–100	0.15
100–110	0.00	100–110	0.56
Total	0.32	Total	0.30

All values are in Euros.

Employee Share Purchase Plan

Additionally, we offer an Employee Share Purchase Plan to our payroll employees, except the Board of Management,

which is excluded from participation in this plan. Through this plan, payroll employees are given the opportunity to

buy our shares through their monthly paycheck. The maximum amount for which employees can participate in the

plan amounts to 10.0% of their annual gross base salary. When employees retain the shares for a minimum of 12

months, ASML will pay out a 20.0% retention bonus in cash on the initial participation amount. This bonus is recorded

as part of personnel expenses.

Accounting policy

The employee’s entitlements to a bonus under employee share purchase plans are accounted for on an accrual

basis. The shares for employee share purchase plans are issued on a quarterly basis and the share purchase price is

based on the closing share price of our listed shares on grant date, which is the date after our quarterly filings. The

purchased shares by employees are issued from our treasury shares.

In 2025, ASML received €142.3 million (2024: €124.0 million; 2023: €99.4 million) from issuance of shares for our

employee share purchase plan.

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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

21. Income taxes

Accounting policy

The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and

liabilities are recognized for the tax effect of operating loss and tax credit carry forwards as well as for tax

consequences attributable to differences between the balance sheets carrying amounts of existing assets and

liabilities and their respective tax bases. If it is more likely than not that some portion or all of a deferred tax asset will

not be realized, a valuation allowance is recorded for the difference.

Income tax expense includes current and deferred taxes on profit, related interest and penalties and non-recoverable

withholding taxes insofar these qualify as income tax, as well as actual or potential withholding taxes on current and

expected dividend income from group companies.

Consistent with the rules of intra-period allocation, current and deferred tax expense in principle are allocated to

statement of operations or OCI in conjunction with the allocation of the underlying transaction.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the

years in which temporary differences, operating loss carry forwards and tax credit carry forwards are expected to be

recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the

Consolidated statements of operations in the period that includes the enactment date.

Deferred income taxes originally recognized through OCI are recycled through earnings in future periods upon

release of the connected item from OCI to the statement of operations.

We assess unrecognized tax benefits based on a two-step process. The first step is to evaluate the tax position for

recognition by determining if the weight of available evidence indicates that it is more likely than not that the position

will be realized upon settlement with a taxing authority or in a dispute with taxing authorities if the taxpayer takes the

dispute to the court of last resort. The second step is to measure the tax benefit as the largest amount that is more

than 50% likely to be realized upon settlement. While we believe we have appropriate support for the positions taken

on our tax returns, we regularly assess the potential outcomes of examinations by tax authorities in determining the

adequacy of our income tax expense, and adjust the income tax expense, income taxes payable and deferred taxes

in the period in which the facts that give rise to a revision become known.

Effective 2025, we adopted the guidance of ASU 2023-09 ‘Income Taxes (Topic 740): Improvements to Income Tax

Disclosures’, prospectively, with no impact on the financial statements only on the notes associated.

Income taxes are affecting our Consolidated statements of operations, Consolidated statements of comprehensive

income and Consolidated balance sheets. The disclosure of the income taxes is therefore split into:

•Income tax expense

•Liability for unrecognized tax benefits

•Deferred taxes

Income tax expense

The components of income tax expense are as follows:

Year ended December 31 (€, in millions)	2023	2024	2025
Netherlands	8,453.5	7,927.0	10,297.5
Foreign	630.0	1,115.4	1,108.6
Income before income taxes	9,083.5	9,042.4	11,406.1
Income tax (expense) / benefit current	(1,211.7)	(1,424.1)	(1,638.0)
Income tax (expense) / benefit deferred	(58.4)	67.5	(12.8)
Income tax (expense) / benefit Netherlands	(1,270.1)	(1,356.6)	(1,650.8)
Income tax (expense) / benefit current	(441.3)	(322.7)	(359.1)
Income tax (expense) / benefit deferred	275.6	(1.3)	(3.5)
Income tax (expense) / benefit Foreign	(165.7)	(324.0)	(362.6)
Total income tax (expense) / benefit current	(1,653.0)	(1,746.8)	(1,997.1)
Total income tax (expense) / benefit deferred	217.2	66.2	(16.3)
Total income tax (expense) / benefit	(1,435.8)	(1,680.6)	(2,013.4)

As of 2025, we have applied the guidance of ASU 2023-09 - Income Taxes (Topic 740) based on which allocation of

income tax (expense) / benefit is determined according to the tax authorities to whom the income tax is eventually

paid. For years 2023 and 2024 allocation is based on the entities bearing the tax, whereby the income tax expense for

Netherlands also includes foreign tax expense that is born by our Dutch group entities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	308
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Current and deferred tax (expense) / benefit can be further broken down into:

Year ended December 31 (€, in millions)	2023	2024	2025
Current year tax (expense) / benefit	(1,766.1)	(1,535.6)	(2,008.0)
Prior year tax (expense) / benefit	113.1	(211.2)	10.9
Total current tax (expense) / benefit	(1,653.0)	(1,746.8)	(1,997.1)	Year ended December 31 (€, in millions)	2023	2024	2025
---	---	---	---
Changes to recognition of operating losses and tax credits	3.0	(24.9)	(52.4)
Prior year tax (expense) / benefit	(85.2)	93.1	51.7
Tax rate changes	13.5	—	16.4
Origination and reversal of temporary differences, operating losses and<br><br>tax credits	285.9	(2.0)	(32.0)
Total deferred tax (expense) / benefit	217.2	66.2	(16.3)

Above current year tax expense includes estimated global minimum tax expense of 0.0 million (2024: 2.5 million) that

can be broken out as follows:

Year ended December 31 (€, in millions)3	2024	2025
Top-up tax expense based on local QDMTT1	(0.3)	—
Top-up tax expense based on IIR2	(2.2)	—
Global minimum tax (expense) / benefit	(2.5)	—

1.QDMTT = Qualifying Domestic Minimum Top-up Tax.

2.IIR = Income Inclusion Rule.

3.Global Minimum Tax rules first became effective as of 2024. As such, no 2023 comparatives are presented above.

The Dutch statutory income tax rate was 25.8% in 2025 (2024: 25.8%; 2023: 25.8%). Tax amounts in other

jurisdictions are calculated at the rates prevailing in the relevant jurisdictions.

The effective tax rate (ETR) decreased to 17.7% in

2025

, compared to

18.6%

2024

. This reduction is primarily due

to a correction for a historic tax position recognized in 2024 that pertained to multiple years, for which the underlying

tax position has a lower impact in 2025.

ASML is domiciled in the Netherlands; therefore, the Dutch statutory income tax rate of 25.8% is used in the

reconciliation to the Company’s effective tax rate for the year ended December 31, 2025. The reconciliation table

below is prepared in accordance with the disclosure requirements of ASU 2023-092, whereby reconciling items that

individually or at aggregated country level are equal or greater than 5% of expected total tax expense in case of using

the Dutch domestic rate, are presented separately.

Year ended December 31 (€, in millions)	2025	%1
Income before income taxes	11,406.1	100.0
Income tax expense based on ASML’s domestic rate	(2,942.8)	25.8
Foreign tax effects
Other foreign jurisdictions
Other	(117.7)	1.0
Netherlands
Nontaxable or nondeductible items
Adjustments in respect of tax incentives	1,055.8	(9.3)
Other nontaxable or nondeductible items	(14.8)	0.1
Other adjustments	30.2	(0.3)
Changes in the liability for unrecognized tax benefits	(24.1)	0.2
Income tax expense / Effective tax rate	(2,013.4)	17.7

1.As a percentage of income before income taxes.

2.The ASU 2023-09 guidance became effective as of 2025. As such no 2024 and 2023 comparatives are presented above.

Explanatory notes on the 2025 reconciling items appear below the table presenting the effective tax rates for 2024

and 2023.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	309
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The following table is a reconciliation of the Dutch statutory rate of 25.8% to the Company’s effective rate for the

years ended December 31, 2023 and 2024 in accordance with the guidance prior to the adoption of ASU 2023-09.

Year ended December 31 (€, in millions)	2023	%1	2024	%1
Income before income taxes	9,083.5	100.0%	9,042.4	100.0%
Income tax provision based on ASML’s domestic rate	(2,343.5)	25.8%	(2,332.9)	25.8%
Effects of tax rates in foreign jurisdictions	14.7	(0.2)%	26.6	(0.3)%
Adjustments in respect of tax exempt income	1.4	—%	0.9	—%
Adjustments in respect of tax incentives	941.9	(10.4)%	824.6	(9.1)%
Adjustments in respect of prior years’ current taxes	113.1	(1.2%)	(211.2)	2.3%
Adjustments in respect of prior years’ deferred taxes	(85.2)	0.9%	93.1	(1.0)%
Movements in the liability for unrecognized tax benefits	(55.0)	0.6%	(66.8)	0.7%
Global Minimum Tax	—	—%	(2.5)	—%
Change in valuation allowance	3.0	—%	(24.9)	0.3%
Equity method investments	(42.6)	0.5%	(41.6)	0.5%
Effect of change in tax rates	13.5	(0.1)%	—	—%
Other credits and non-taxable items	2.9	—%	54.1	(0.6)%
Provision for income taxes	(1,435.8)	15.8%	(1,680.6)	18.6%

1.As a percentage of income before income taxes.

The individual elements in these tables are explained in more detail below. While the explanations are based on the

captures of the 2025 table, they also reference the corresponding items from the 2024 and 2023 table for context.

Income tax expense based on ASML’s domestic rate

The income tax expense based on ASML’s domestic rate is based on the Dutch statutory income tax rate. It reflects

the income tax expense that would apply if our entire taxable income were subject to the Dutch statutory tax rate,

with no tax incentives applied. No state or local taxes are applicable in the Netherlands.

Foreign tax effects

This category includes the cumulative effect of the reconciling items applicable in the foreign (i.e. non-Dutch)

jurisdictions where we operate. It includes the benefit of the R&D credits claimed at the level of our US group

companies, the income tax expense relating to our investment in Carl Zeiss SMT Holding GmbH & Co. KG as well as

other items that individually do not meet the separate disclosure threshold of 5%, such as non-deductible items, tax

exempt income items, prior year adjustments, effects of differences in tax rates, valuation adjustments, Global

Minimum Taxes and tax effects on intercompany elimination allocated to Foreign jurisdictions.

Adjustment in respect of tax incentives

This category includes the impact of the reduced tax rate as a result of application of the Dutch Innovation Box, which

is the only reconciling item exceeding the 5% threshold of ASU 2023-09. The innovation box is a facility under Dutch

corporate tax law pursuant to which qualified income associated with R&D is subject to an effective tax rate of 9.0%.

The innovation box benefit is determined according to Dutch laws and published tax policy, whereby for all years

mentioned the application has been confirmed in agreements between ASML and the Dutch tax authorities. As of

2024 this agreement has been renewed, now being applicable for the years 2024 through 2028 assuming facts and

circumstances do not change.

Decline in absolute amount of the 2024 benefit of tax incentives as compared to 2023 is driven by a lower innovation

box allocation percentage applicable as of 2024 as compared to 2023.

Other nontaxable or nondeductible items

This category reflects the impact of permanent nontaxable or nondeductible items at the level of our group companies

in the Netherlands that do not meet the separate disclosure threshold of 5%. It includes, amongst others, the effect of

nondeductible withholding taxes, nondeductible shared-based compensation expenses and non-deductible

employee related expenses.

Other adjustments

The category ‘Other adjustments’ includes items relating to our group companies in the Netherlands that individually

do not meet the separate disclosure threshold of 5%. It includes prior year adjustments and tax effects on

intercompany elimination allocated to our Dutch operations.

2024 prior years’ current taxes included a corrective tax expense in relation to a historic tax position.

In 2025 and 2024 there were no tax rate changes in the Netherlands with a revaluation impact. The tax rate change

reflected for 2023 mainly related to revaluation of deferred tax positions of our Dutch fiscal unity following from the

renewed innovation box agreement with the Dutch tax authorities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	310
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Changes in the liability for unrecognized tax benefits

This category includes movements in our liability for unrecognized tax benefits for the worldwide consolidated group.

No netting with underlying tax positions has been applied.

In 2025, similar to prior years, the effective tax rate was impacted by movements in the liability for unrecognized tax

benefits. The movement for 2025 is mainly driven by continued dialogues with Dutch and foreign tax authorities in the

area of transfer pricing and the use of foreign tax credits. Additionally, some prior-year positions have been released

as a result of the lapse of statute.

US Tax Reforms

The year-end tax positions also reflect the regulations of US Tax Reforms, thereby taking into account the guidance

issued by the US government. Hereby the most recent guidance for the final FDII regulations has been applied. With

regard to the global intangible low taxed income (GILTI) and base erosion and anti-abuse tax (BEAT) regulations, the

decision has been taken to treat these as a period permanent item.

In 2022, the US enacted the CHIPS and Science Act, which, among other provisions, introduced a 25% investment

tax credit for semiconductor manufacturing equipment. These credits are accounted for as reductions to capitalized

Property, plant and equipment costs, rather than as income taxes.

Additionally, in 2022 the US enacted the Inflation Reduction Act (IRA), which, among other things, implemented a

15% minimum tax on book income of certain large corporations, a 1% excise tax on share buybacks, several clean

energy provisions and additional funding for the IRS. Relevant tax aspects of the IRA have been assessed and

included in our tax positions reported for 2025.

The same applies for the provisions of the One Big Beautiful Bill Act (OBBBA) that was enacted in 2025. Based on our

current analysis, the OBBBA has no material impact on our Consolidated financial statements for 2025 and we do not

believe it will have material impact for upcoming financial years.

Global Minimum Tax

ASML falls within the scope of the Organisation for Economic Co-operation and Development (OECD) global

minimum tax rules. Global minimum tax legislation was enacted in the Netherlands, the jurisdiction in which ASML is

incorporated, and came into effect from January 1, 2024.

In conformity with the FASB staff comments of February 1, 2023, we have treated the global minimum tax as an

alternative minimum tax and did not recognize deferred tax impacts or remeasure existing deferred taxes under local

regular income tax systems.

ASML recognized an estimated current tax expense related to Global minimum tax, amounting to € 0.0 million (2024:

2.5 million).

Income taxes paid1

Jurisdiction / Year (€, in millions)	2025
Domestic
Netherlands	(1,152.7)
Foreign
United States	(171.1)
South Korea	(89.3)
China	(98.0)
Rest of World	(110.3)
Total	(1,621.4)

1.The ASU 2023-09 guidance became effective as of 2025. As such no 2024 and 2023 comparatives are presented above.

Income taxes paid include withholding taxes paid on certain payments between group companies that qualify as

income taxes within the scope of ASC 740. These withholding taxes have been presented as income taxes paid in the

countries of remittance to the local tax authorities.

Liability for unrecognized tax benefits and deferred taxes

The liability for unrecognized tax benefits and related accrued interest and penalties and total deferred tax position

recorded on the Consolidated balance sheets is as follows:

Year ended December 31 (€, in millions)	2024	2025
Liability for unrecognized tax benefits	(253.1)	(174.5)
Deferred tax assets	1,940.7	1,719.4
Deferred tax liabilities	(46.1)	(8.5)
Deferred and other tax assets (liabilities)	1,641.5	1,536.4

Liability for unrecognized tax benefits

We have operations in multiple jurisdictions, where we are subject to the application of complex tax laws. Application

of these complex tax laws may lead to uncertainties on tax positions. We aim to resolve these uncertainties in

discussions with the tax authorities. We record unrecognized tax benefits in line with the requirements of ASC 740,

which requires us to estimate the potential outcome of any tax position. Our estimate for the potential outcome of any

uncertain tax position is highly judgmental. We believe that we have adequately provided for uncertain tax positions.

However, settlement of these uncertain tax positions in a manner inconsistent with our expectations could have a

material impact on our Consolidated financial statements.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	311
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Consistent with the requirements of ASC 740, as of December 31, 2025, the liability for unrecognized tax benefits

(excluding interest and penalties) amounts to €160.8 million (2024: €214.0 million), which is classified as Deferred and

other income tax liabilities. If recognized, these unrecognized tax benefits would positively affect our effective tax rate

by approximately €160.7 million (2024: €188.4 million benefit).

Interest and penalties related to the liability for unrecognized tax benefits amount to €13.7 million (

2024

: €39.1 million)

and are included in the total liability position, as specified below. The impact on the Consolidated statements of

operations of accrued interest and penalties in

2025

amount to a benefit of €22.0 million (

2024

: €17.7 million benefit).

The following table is a reconciliation of the beginning and ending balance of the liability for unrecognized tax

benefits:

Year ended December 31 (€, in millions)	2024	2025
Balance as at January 1	(193.6)	(214.0)
Gross increases – tax positions in prior period	(39.7)	(25.9)
Gross decreases – tax positions in prior period	11.0	62.2
Gross increases – tax positions in current period	(64.9)	(58.5)
Settlements	69.9	60.3
Lapse of statute of limitations	6.1	1.7
Effect of changes in exchange rates	(2.8)	13.4
Total liability for unrecognized tax benefits	(214.0)	(160.8)
Balance of accrued interest and penalties	(39.1)	(13.7)
Total liabilities for unrecognized tax benefits including interest and penalties	(253.1)	(174.5)

We conclude our liability for unrecognized tax benefits to be appropriate. Settlements reported in 2025 mainly relate

to an agreement reached with the Dutch tax authorities in relation to the use of foreign withholding tax credits. The

settlements reported in 2024 mainly relate to an agreement reached with South Korean tax authorities in the area of

transfer pricing.

Increase in prior period and current period tax positions mainly relate to dialogues with the Dutch tax authorities in

relation to Transfer Pricing and the use of foreign withholding tax credits.

We file income tax returns in all jurisdictions where we operate, with the Netherlands, US, Taiwan, South Korea and

China being the major jurisdictions. The years for which tax returns are still open for examination for respective

jurisdictions are as follows:

Jurisdictions	Years
Netherlands	2022 – 2025
US	2018 – 2025
Taiwan	2020 – 2025
South Korea	2022 – 2025
China	2015 – 2025

We are routinely subject to examinations and audits from tax and other authorities in the various jurisdictions in which

we operate. We believe that adequate amounts of taxes and related interest and penalties have been provided for,

and any adjustments as a result of examinations are not expected to have a material adverse effect.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	312
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Deferred taxes

The composition of total deferred tax assets and liabilities reconciled to the classification in the Consolidated balance sheets is:

Deferred taxes (€, in millions)	January 1, 2025	Credits and other	Consolidated<br><br>Statements<br><br>of Operations	Effect of changes<br><br>in exchange rates	December 31, 2025
Deferred tax assets:
Capitalized R&D costs	481.7	—	(106.5)	(63.9)	311.3
Goodwill	79.8	—	5.3	—	85.1
R&D and other tax credit carry forwards	266.6	(9.7)	85.4	(30.2)	312.1
Inventories	95.5		(23.4)	(2.1)	70.0
Contract liabilities	1,046.0		16.8	(90.4)	972.4
Accrued and other liabilities	135.4		(9.0)	(13.2)	113.2
Operating loss carry forwards	1.1		49.0	1.0	51.1
Property, plant and equipment	11.4		2.7	(0.2)	13.9
Lease liabilities	25.4		(3.4)	(3.1)	18.9
Other intangible assets	107.0	—	(15.3)	(7.0)	84.7
Share-based payments	30.0	—	6.3	(3.5)	32.8
Other temporary differences	24.4	—	32.7	20.2	77.3
Total deferred tax assets, gross	2,304.3	(9.7)	40.6	(192.4)	2,142.8
Valuation allowance1	(242.6)	—	(52.4)	27.3	(267.7)
Total deferred tax assets, net	2,061.7	(9.7)	(11.8)	(165.1)	1,875.1
Deferred tax liabilities:
Other intangible assets	(46.0)	—	11.1	11.9	(23.0)
Goodwill	(45.7)	—	(8.0)	—	(53.7)
Inventories	—	—	—	—	—
Right-of-use assets	(25.4)	—	3.4	3.1	(18.9)
Property, plant and equipment	(36.1)	—	8.0	3.1	(25.0)
Accrued and other liabilities	(0.3)	—	(27.4)	0.6	(27.1)
Contract liabilities	—	—	—	—	—
Long-term debt	(1.3)	—	1.2	—	(0.1)
Other temporary differences	(12.3)	—	7.2	(11.3)	(16.4)
Total deferred tax liabilities	(167.1)	—	(4.5)	7.4	(164.2)
Net deferred tax assets (liabilities)	1,894.6	(9.7)	(16.3)	(157.7)	1,710.9
Classified as:
Deferred tax assets – non-current	1,940.7				1,719.4
Deferred tax liabilities – non-current	(46.1)				(8.5)
Net deferred tax assets (liabilities)	1,894.6				1,710.9

1.The valuation allowance disclosed above relates to R&D and other tax credit carry forwards and operating loss carry forwards that may not be realized.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	313
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Deferred taxes (€, in millions)	January 1, 2024	Credits and other	Consolidated<br><br>Statements<br><br>of Operations	Income tax recognized<br><br>in Other<br><br>Comprehensive<br><br>Income	Effect of changes<br><br>in exchange rates	December 31, 2024
Deferred tax assets:
Capitalized R&D costs	514.1	—	(66.5)	—	34.1	481.7
Goodwill	65.0		14.8	—	—	79.8
R&D and other tax credit carry forwards	217.8	(9.7)	45.4	—	13.1	266.6
Inventories	61.4	—	31.6	—	2.5	95.5
Contract liabilities	959.8	—	39.9	—	46.3	1,046.0
Accrued and other liabilities	139.5	—	(6.6)	—	2.5	135.4
Operating loss carry forwards	3.9	—	(2.8)	—	—	1.1
Property, plant and equipment	29.2	—	(16.2)	—	(1.6)	11.4
Lease liabilities	28.7	—	(5.0)	—	1.7	25.4
Other intangible assets	119.3	—	(12.3)	—	—	107.0
Share-based payments	16.8	—	6.9	—	6.3	30.0
Other temporary differences	22.5	—	4.9	3.7	(6.7)	24.4
Total deferred tax assets, gross	2,178.0	(9.7)	34.1	3.7	98.2	2,304.3
Valuation allowance1	(206.7)	—	(24.9)	—	(11.0)	(242.6)
Total deferred tax assets, net	1,971.3	(9.7)	9.2	3.7	87.2	2,061.7
Deferred tax liabilities:
Other intangible assets	(52.0)	—	9.4	—	(3.4)	(46.0)
Goodwill	(38.5)	—	(7.2)	—	—	(45.7)
Inventories	(3.8)		3.7	—	0.1	—
Right-of-use assets	(28.7)	—	5.0	—	(1.7)	(25.4)
Property, plant and equipment	(13.6)	—	(22.7)	—	0.2	(36.1)
Accrued and other liabilities	(0.5)		0.2	—	—	(0.3)
Contract liabilities	(80.0)	—	80.0	—	—	—
Long-term debt	(1.6)	—	0.3	—	—	(1.3)
Other temporary differences	(2.9)	—	(11.7)	—	2.3	(12.3)
Total deferred tax liabilities	(221.6)	—	57.0	—	(2.5)	(167.1)
Net deferred tax assets (liabilities)	1,749.7	(9.7)	66.2	3.7	84.7	1,894.6
Classified as:
Deferred tax assets – non-current	1,872.3					1,940.7
Deferred tax liabilities – non-current	(122.6)					(46.1)
Net deferred tax assets (liabilities)	1,749.7					1,894.6

1.The valuation allowance disclosed above relates to R&D and other tax credit carry forwards and operating loss carry forwards that may not be realized.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	314
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Operating loss carry forwards and tax credit carry forwards

The deferred tax assets from operating loss carry forwards, R&D credits and other tax credit carry forwards

recognized as per December 31, 2025, are largely offset by means of a valuation allowance. R&D and other tax credit

carry forwards for the amount of €232.7 million have no expiration date. The remaining R&D and other tax credit carry

forwards of €79.4 million have an expiration date between 2028 and 2045. For an amount of €212.6 million the

operating losses carry forward have an expiration date between 2035 and 2045. The remaining operating loss carry

forwards of €207.3 million have no expiration date.

Unrecognized deferred tax liability related to investments in foreign subsidiaries

ASML periodically reviews the capital structure of each group entity and may distribute retained earnings, repay

capital or inject fresh capital, should the projected cash flows, freely available funds of the respective entity and

capital adequacy requirements in the respective country allow/require for this. At December 31, 2025, the

undistributed retained earnings of our non-Dutch subsidiaries are generally considered indefinitely reinvested, except

for some ad hoc dividend distributions that may take place in 2026 for some of our Asian group entities with expected

limited tax impact. As such, no deferred tax liability has been recognized in respect of undistributed retained earnings

of our non-Dutch subsidiaries. As the tax implications of such distributions are dependent on local tax and accounting

regulations applying at the moment of distribution, these can also not practically be determined. As per December 31,

2025, the aggregate amount of unrecognized temporary differences approximately amounts to €1,267.6 million (

2024

€1,010.2 million).

22. Shareholders’ equity

Share capital

ASML’s authorized share capital amounts to €126.0 million and is divided into:

Type of shares	Number of shares	Nominal value	Votes per share
Cumulative preference shares	700,000,000	€0.09 per share	1
Ordinary shares	700,000,000	€0.09 per share	1

The issued and fully paid-up ordinary shares with a nominal value of €0.09 each were as follows:

Year ended December 31	2023	2024	2025
Issued ordinary shares with nominal value of €0.09	393,421,721	393,283,720	385,417,665
Issued ordinary treasury shares with nominal value of €0.09	6,162,857	546,972	2,730,009
Total issued ordinary shares with nominal value of €0.09	399,584,578	393,830,692	388,147,674

As of December 31, 2025, 87,904,216 ordinary shares were held by 316 registered holders with a registered address

in the US. Since certain of our ordinary shares were held by brokers and nominees, the number of record holders in

the US may not be representative of the number of beneficial holders, or of where the beneficial holders are resident.

Each ordinary share consists of 900 fractional shares. Fractional shares entitle the holder thereof to a fractional

dividend, but do not give entitlement to voting rights. Only those persons who hold shares directly in the share

New York share register, held by JP Morgan Chase Bank, N.A., P.O. Box 64506, St. Paul, MN 55164-0506, United

States, can hold fractional shares. Shareholders who hold ordinary shares through the deposit system under the

Dutch Securities Bank Giro Transfer Act maintained by the Dutch central securities depository Euroclear Nederland or

through the Depository Trust Company cannot hold fractional shares.

No cumulative preference shares have been issued. Each share carries one vote.

There are no special voting rights on the issued shares in our share capital.

There are currently no limitations, either under Dutch law or in our Articles of Association, on the transfer of ordinary

shares in the share capital of ASML. Pursuant to our Articles of Association, the Supervisory Board’s approval shall be

required for every transfer of cumulative preference shares.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	315
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Issue and repurchase of (rights to) shares

Our Board of Management has the power to issue ordinary shares and cumulative preference shares insofar as it has

been authorized to do so by the General Meeting. The Board of Management requires approval of the Supervisory

Board for such an issue. The authorization by the General Meeting can only be granted for a certain period not

exceeding five years and may be extended for no longer than five years on each occasion. If the General Meeting has

not authorized the Board of Management to issue shares, the General Meeting will be authorized to issue shares on

the Board of Management’s proposal, provided that the Supervisory Board has approved such a proposal.

Holders of our ordinary shares have a preemptive right, in proportion to the aggregate nominal amount they hold. This

preemptive right may be restricted or excluded. Holders of ordinary shares do not have preemptive rights with respect to

any ordinary shares issued for consideration other than cash or ordinary shares issued to employees. If authorized for this

purpose by the General Meeting, the Board of Management has the power, subject to approval of the Supervisory Board,

to restrict or exclude the preemptive rights of holders of ordinary shares.

At our 2025 AGM, the Board of Management was authorized from April 23, 2025, through October 23, 2026, subject

to the approval of the Supervisory Board, to issue shares and/or rights thereto, representing up to a maximum of 5%

of our issued share capital at April 23, 2025, plus an additional 5% of our issued share capital at April 23, 2025, that

may be issued in connection with mergers, acquisitions and/or (strategic) alliances. Our shareholders also authorized

the Board of Management through October 23, 2026, subject to approval of the Supervisory Board, to restrict or

exclude preemptive rights with respect to holders of ordinary shares up to a maximum of 5% of our issued share

capital in connection with the general authorization to issue shares and/or rights to shares, plus an additional 5% in

connection with the authorization to issue shares and/or rights to shares in connection with mergers, acquisitions

and/or (strategic) alliances.

We may repurchase our issued ordinary shares at any time, subject to compliance with the requirements of Dutch law

and our Articles of Association. Any such repurchases are subject to the approval of the Supervisory Board and

authorization by the General Meeting, which authorization may not be for more than 18 months.

At the 2025 Annual General Meeting (AGM), the Board of Management was authorized, subject to Supervisory Board

approval, to repurchase through October 23, 2026, up to a maximum of 10% of our issued share capital at April 23,

2025, at a price between the nominal value of the ordinary shares purchased and 110% of the market price of these

securities on Euronext Amsterdam or Nasdaq.

ASML Preference Shares Foundation

The ASML Preference Shares Foundation (Stichting Preferente Aandelen ASML) has been granted an option right to

acquire cumulative preference shares in the share capital of ASML. The Foundation may exercise this Preference

Share Option when, in the opinion of the Foundation’s Board of Directors, the interests of ASML, its business or its

stakeholders are at stake, including in the event that:

•a public bid for ASML’s shares has been announced or made, or there is a justified expectation that such a bid

will be made without any agreement having been reached with ASML in relation thereto; or

•an attempted exercise of voting rights by one or more shareholders, which in the opinion of the Foundation’s

Board of Directors is materially in conflict with the interests of ASML, of its business or of its stakeholders.

The Foundation’s objectives are to look after the interests of ASML and the enterprises maintained by

and/or affiliated in a group with ASML, in such a way that ASML’s interests and those of enterprises and all parties

concerned are safeguarded in the best possible way. The Foundation is responsible for ensuring that influences in

conflict with these interests, which might affect the independence or the identity of ASML and those companies, are

deterred to the best of the Foundation’s ability. The Foundation aims to realize its objects by acquiring and holding

cumulative preference shares in our capital and by exercising the rights attached to these shares, particularly the

voting rights.

The Preference Share Option entitles the Foundation to acquire cumulative preference shares, whereby the aggregate

nominal value of such cumulative preference shares may not exceed the aggregate nominal value of the ordinary

shares issued at the time of exercise of the Preference Share Option. The subscription price for the cumulative

preference shares shall be equal to nominal value. Only 25 percent of the subscription price will be payable upon

issuance, with the remainder only being payable when called-up by ASML.

Cancellation and repayment of issued cumulative preference shares by ASML requires authorization by the General

Meeting, on a proposal to this effect made by the Board of Management and approved by the Supervisory Board. If

the Preference Share Option is exercised and as a result cumulative preference shares are issued, we will initiate the

repurchase or cancellation of all cumulative preference shares held by the Foundation at the Foundation’s request. In

that case, we are obliged to effect the repurchase and respective cancellation as soon as possible. A cancellation will

result in a repayment of the amount paid and exemption from the obligation to pay up on the cumulative preference

shares. A repurchase of the cumulative preference shares can only take place when such shares are fully paid up.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	316
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

If the Foundation does not request that we repurchase or cancel all cumulative preference shares held by the

Foundation within 20 months of issuance of these shares, we will be required to convene a General Meeting for the

purpose of deciding on a repurchase or cancellation of these shares.

The Foundation operates independently of ASML. Its Board of Directors comprises four independent members. Per

December 31, 2025, its members were: Mr. Wim Pelsma, Mr. Sjoerd Vollebregt, Mr. Jos Streppel and Mr. Steven

Perrick (who was replaced by Mr. Arnold Croiset van Uchelen effective January 1, 2026).

ASML has not established any other anti-takeover devices.

Dividend policy

ASML aims to provide a sustainable dividend per share that will grow over time, paid quarterly. On an annual basis,

the Board of Management, upon prior approval from the Supervisory Board, submits a proposal to the AGM with

respect to the amount of dividend to be declared with respect to the prior year, taking into account any interim

dividend distributions. The dividend proposal in any given year will be subject to availability of distributable profits,

retained earnings and cash, and may be affected by, among other things, our view of potential future liquidity

requirements including for investments in production capacity, working capital requirements, the funding of our R&D

programs and acquisition opportunities that may arise from time to time, and future changes in applicable tax and

corporate laws.

ASML intends to declare a total dividend for the year of 2025 of €7.50 per ordinary share, which is a 17.2% increase

compared to the 2024 total dividend of €6.40 per ordinary share. Recognizing the interim dividends of €1.60 per

ordinary share paid in August 2025, November 2025 and February 2026, this leads to a final dividend proposal to the

General Meeting of €2.70 per ordinary share.

Dividends on ordinary shares are payable out of net income or retained earnings, as shown in our Financial

statements as adopted by our AGM, after payment first of (accumulated) dividends out of net income on any issued

cumulative preference shares.

Purchase of equity securities

In addition to dividend payments, we intend to return cash to our shareholders on a regular basis through share

buybacks or capital repayment, subject to our actual and anticipated level of liquidity requirements and other relevant

factors.

On January 28, 2026 we announced a new share buyback program to be executed by December 31, 2028. ASML

intends to repurchase shares of an amount up to €12 billion, of which we expect a total of up to 2.0 million shares will

be used to cover employee share plans. ASML intends to cancel the remainder of the shares repurchased. The share

buyback program may be suspended, modified or discontinued at any time. The previous program finished in

December 2025, pursuant to which we repurchased a total of €7.6 billion out of the up to €12.0 billion program.

In 2025, we repurchased 8,323,320 shares (2024: 574,925 shares) for a total consideration of €5,950.0 million (2024:

€500.0 million). In 2025, we cancelled 5,683,018 shares (2024: 5,754,117 shares).

The following table provides a summary of shares repurchased by ASML in 2025:

Period	Total number<br><br>of shares<br><br>purchased	Average<br><br>price paid per<br><br>Share (€)	Total number<br><br>of shares<br><br>purchased under<br><br>programs	Maximum value<br><br>of shares that may yet<br><br>be purchased<br><br>(€ millions)
January 1 – 31, 2025	181,400	714.60	181,400	10,170.4
February 1 – 28, 2025	1,819,703	712.36	2,001,103	8,874.1
March 1 – 31, 2025	2,067,246	658.42	4,068,349	7,513.0
April 1 – 30, 2025	1,390,673	583.36	5,459,022	6,701.7
May 1 – 31, 2025	398,170	648.62	5,857,192	6,443.4
June 1 – 30, 2025	385,453	669.72	6,242,645	6,185.3
July 1 – 31, 2025	200,024	676.40	6,442,669	6,050.0
August 1 – 31, 2025	—	—	6,442,669	6,050.0
September 1 – 30, 2025	—	—	6,442,669	6,050.0
October 1 – 31, 2025	483,439	897.81	6,926,108	5,616.0
November 1 – 30, 2025	816,582	885.88	7,742,690	4,892.6
December 1 – 31, 2025	580,630	934.45	8,323,320	4,350.0
Total	8,323,320	714.86
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	317
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Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

23. Net income per ordinary share

Basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary

shares outstanding for that period.

The dilutive effect is calculated using the treasury stock method by dividing net income by the weighted average

number of ordinary shares outstanding for that period plus shares applicable to options and conditional shares

(dilutive potential ordinary shares). The calculation of diluted net income per ordinary share does not assume exercise

of options when exercise would be anti-dilutive. Excluded from the diluted weighted average number of shares

outstanding calculation are cumulative preference shares contingently issuable to the preference share foundation,

since they represent a different class of stock from the ordinary shares.

The basic and diluted net income per ordinary share has been calculated as follows:

Year ended December 31 (€, in millions, except per share data)	2023	2024	2025
Net income	7,839.0	7,571.6	9,609.4
Weighted average number of shares outstanding	393.8	393.3	388.5
Basic net income per ordinary share	19.91	19.25	24.73
Weighted average number of shares outstanding	393.8	393.3	388.5
Plus shares applicable to options and conditional shares	0.3	0.3	0.4
Diluted weighted average number of shares	394.1	393.6	388.9
Diluted net income per ordinary share	19.89	19.24	24.71

24. Vulnerability due to certain concentrations

We rely on outside vendors for components and subassemblies used in our systems, including the design thereof,

each of which is obtained from a single supplier or a limited number of suppliers. Our reliance on a limited group of

suppliers involves several risks, including a potential inability to obtain an adequate supply of required components,

reduced control over pricing, and the risk of untimely delivery of these components and subassemblies.

25. Financial risk management

We are exposed to certain financial risks, such as foreign currency risk, interest rate risk, credit risk, liquidity risk and

capital risk. Our overall risk management program focuses on the unpredictability of financial markets and seeks to

minimize potentially adverse effects on our financial performance. Our risk management program focuses

appropriately on the current environment of uncertainty in the financial markets.

A key element within our risk management program is our long-held prudent financing policy, which is based on three

foundational elements:

•Liquidity: Maintain sufficient liquidity to ensure continued business growth and to provide a buffer for cash flow

volatility

•Capital structure: Maintain a capital structure that targets a solid investment-grade credit rating

•Cash return: Provide a sustainable dividend per share that will grow over time, paid quarterly, while returning

excess cash to shareholders through share buybacks or capital repayment

We use derivative financial instruments to hedge certain risk exposures. None of these transactions are entered into

for trading or speculative purposes. We use market information to determine the fair value of our derivative financial

instruments.

Foreign currency risk management

Our Consolidated financial statements are expressed in euros. Accordingly, our results of operations are exposed to

fluctuations in exchange rates between the euro and other currencies. Changes in currency exchange rates can result

in losses in our Consolidated financial statements. We are exposed to fluctuations in the exchanges rates of the US

dollar, Japanese yen, the Taiwanese dollar, the South Korean won and the Chinese yuan, in relation to the euro. We

incur costs of sales predominantly in euros with portions also denominated in US and Taiwanese dollars. A small

portion of our operating results are driven by movements in currencies other than the euro, US dollar, Japanese yen,

South Korean won, Taiwanese dollar or Chinese yuan.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	318
Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Foreign currency sensitivity

The following table details our sensitivity to a 10.0% strengthening of foreign currencies against the euro. The

sensitivity analysis includes foreign currency denominated monetary items outstanding and adjusts their translation at

the period end for a 10.0% strengthening in foreign currency rates. A positive amount indicates an increase in net

income or equity.

Year ended December 31 (€, in millions)	2024		2025
	Impact on net<br><br>income	Impact on<br><br>equity	Impact on net<br><br>income	Impact on<br><br>equity
US dollar	10.3	81.3	1.1	88.2
Japanese yen	(30.4)	(0.4)	(23.2)	7.4
Taiwanese dollar	(7.9)	—	(2.3)	—
South Korean won	(11.4)	—	21.8	—
Chinese yuan	1.7	—	(1.2)	—
Other currencies	(0.8)	—	2.2	—
Total	(38.5)	80.9	(1.6)	95.6

It is our policy to limit the effects of currency exchange rate fluctuations on our Consolidated statements of

operations. The impact on net income reflects our net exposure to currencies other than the euro at year end 2025.

The negative effect on net income as presented in the table above for 2025 is mainly attributable to timing differences

between the arising and hedging of exposures.

The effects of the fair value movements of cash flow hedges entered into for US dollar and Japanese yen transactions

are recognized in equity. The effect on 2025 compared to 2024 for both US dollar and Japanese yen is mainly the

result of the change in outstanding cash flow hedges.

A 10.0% weakening of the foreign currencies against the euro, would have an approximately equal but opposite effect

on net income and equity.

Foreign currency risk policy

It is our policy to hedge material transaction exposures, such as forecasted sales and purchase transactions.

We hedge these exposures through the use of forward foreign exchange contracts.

Foreign exchange contracts

The following table details the notional principal amounts of the outstanding forward foreign exchange contracts.

Year ended December 31 (in billions)	2024	2025
US dollar (USD)	1.0	1.6
Japanese yen (JPY)	1.1	39.7
Taiwanese dollar (TWD)	27.6	18.0
South Korean won (KRW)	66.4	144.9
Chinese yuan (CNY)	1.1	1.1

The hedged highly probable forecasted transactions denominated in foreign currency are expected to occur at

various dates during the coming 12 months. Gains and losses recognized in other comprehensive income (OCI) on

forward foreign exchange contracts included in a hedge relationship will be recognized in the Consolidated

statements of operations in the period during which the hedged forecasted transactions affect the Consolidated

statements of operations.

In 2025, we recognized a transfer to net income of €13.8 million loss (2024: €8.9 million gain; 2023: €0.6 million loss)

in the Consolidated statements of operations resulting from effective cash flow hedges for forecasted sales and

purchase transactions that occurred in the year. Furthermore, we recognized a net amount of €65.1 million gain in the

Consolidated statements of operations resulting from derivative financial instruments measured at fair value through

profit or loss (2024: €31.4 million gain; 2023: €52.4 million gain), which is mainly offset by the revaluation of the

hedged monetary items.

OCI balance unrealized gains and losses on financial instruments from foreign exchange contracts

The following table details the anticipated outstanding accumulated unrealized gains and losses in OCI from financial

instruments for both foreign currency denominated forecasted purchase and sales transactions. All amounts related

to the purchase transactions are expected to be released over the next 12 months and will offset the euro equivalent

of foreign currency denominated forecasted purchase transactions.

Year ended December 31 (€, in millions)	2023	2024	2025
Purchase transactions	(8.9)	25.6	(62.5)
Net of taxes	(7.6)	21.7	(52.9)

The effectiveness of all contracts for which we apply hedge accounting is monitored on a quarterly basis. Potential

sources of hedge ineffectiveness primarily arise from mismatches in nominal amounts or differences in the timing of

settlement between derivative instruments and the underlying exposures. During 2025, 2024 and 2023, no ineffective

hedge relationships were recognized.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	319
Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Interest rate risk management

We have interest-bearing assets and liabilities that expose us to fluctuations in market interest rates, managed

through interest rate swaps.

Interest rate sensitivity

The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative

financial and non-derivative financial instruments at the balance sheet date, with the stipulated change taking place

at the beginning of the financial year and held constant throughout the reporting period. The table below shows the

effect of a 100 basis point increase in interest rates on our net income and equity. A positive amount indicates an

increase in net income and equity.

Year ended December 31 (€, in millions)	2024		2025
	Impact on net<br><br>income	Impact on<br><br>equity	Impact on net<br><br>income	Impact on<br><br>equity
Effect of a 100 basis point increase in interest rates	94.9	—	106.7	—

The positive effect on net income mainly relates to our total amount of cash and cash equivalents and short-term

investments being higher than our total floating debt position, which is excluding the Eurobonds issued in 2020.

A 100 basis point decrease in interest rates would have an approximately equal but opposite effect on net income

and equity.

Hedging policy interest rates

We use interest rate swaps to minimize the net interest exposure for the group by aligning the interest terms of the

available cash and the interest-bearing debt. There may be residual interest rate risk to the extent the asset and

liability positions do not fully offset.

Interest rate swaps

The notional principal amount of the outstanding interest rate swap contracts as of December 31, 2025, was €2.3

billion (2024: €3.3 billion). During 2025, these outstanding hedges were highly effective in hedging the fair value

exposure to interest rate movements. We did not enter into interest rate swaps in connection with the Eurobonds

issued in 2020.

Credit risk management

Financial instruments that potentially subject us to a significant concentration of credit risk consist principally of cash

and cash equivalents, short-term investments, derivative financial instruments used for hedging activities, Accounts

receivable, Finance receivables and Loans receivables.

Cash and cash equivalents, short-term investments and derivative financial instruments contain an element of risk of

the counterparties being unable to meet their obligations. Our risk management program focuses appropriately on the

current environment of uncertainty in the financial markets. We invest our cash and cash equivalents and short-term

investments in short-term deposits with financial institutions that have investment-grade credit ratings and in

government and government-related bodies that have investment-grade credit ratings and in money market and other

investment funds that invest in high-rated debt securities. To mitigate the risk that our counterparties in hedging

transactions are unable to meet their obligations, we enter into transactions with a limited number of major financial

institutions that have investment-grade credit ratings and closely monitor their creditworthiness. All credit ratings are

rated by credit rating institutions like Standard & Poor’s, Moody’s or Fitch. Concentration risk is mitigated by limiting

the exposure to each of the individual counterparties.

Our customers consist of integrated circuit manufacturers located throughout the world. We perform ongoing credit

evaluations of our customers’ financial condition. We mitigate credit risk through additional measures, including the

use of down payments, letters of credit and contractual ownership retention provisions. Retention of ownership

enables us to recover the systems in the event a customer defaults on payment. See discussion of Loans receivable

in Note 26 Related parties and variable interest entities.

Liquidity risk management

Our principal sources of liquidity consist of cash and cash equivalents, short-term investments and available credit

facilities, with the objective of maintaining sufficient liquidity to ensure continued business growth and to provide a

buffer for cash flow volatility. In addition, we may from time to time raise additional funding in debt and equity

markets. We seek to ensure that our principal sources of liquidity will be sufficient to satisfy our liquidity requirements

at all times.

Our liquidity needs are affected by many factors, some of which are based on the normal ongoing operations of the

business, and some of which relate to uncertainties of the global economy and the semiconductor industry. Although

our cash requirements fluctuate based on the timing and extent of these factors, we believe that cash generated from

operations, together with our other sources of liquidity, are sufficient to satisfy our requirements, including our

expected capital expenditures, R&D expenses and debt servicing.

We intend to return cash to our shareholders on a regular basis in the form of dividend payments and, subject to our

actual and anticipated liquidity requirements and other relevant factors, share buybacks or capital repayment.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	320
Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Capital risk management

Our objectives when managing our capital structure are to safeguard our ability to satisfy our capital providers by

maintaining a capital structure that ensures liquidity and supports a solid investment-grade credit rating. The capital

structure includes both debt and the components of equity, in accordance with both US GAAP and EU-IFRS. The

capital structure is mainly altered by, among other things, our financial results, adjusting the amount of dividends paid

to shareholders, the amount of share buybacks or capital repayment and any changes in the level of debt. Our capital

structure is formally reviewed with the Supervisory Board each year in connection with our updated long-term

financial plan and relevant scenarios. The outcome of this year’s review confirmed that we should maintain our

existing financing policy in relation to our capital structure.

Our current credit rating from Moody’s is A1 (Stable). This rating was upgraded in November 2025 from A2.

Our current credit rating from Fitch is A+ (Stable). This rating was upgraded in May 2024 from A.

Supplier finance program

We have a supplier finance program in place. We pay the full invoice amount on the original maturity date (for the vast

majority 60 days after end of month) to a third party. Suppliers can choose to request early payment from the third

party. The program can be terminated by the third party or by us with a notice period of 30 business days.

The amount of the obligations outstanding that we have confirmed as valid to the third party as of December 31,

2025, was €326.5 million (2024: €344.8 million) and is included in Accounts payable.

Year ended December 31 (€, in millions)	2024	2025
Confirmed obligations outstanding at the beginning of the year	408.5	344.8
Invoices confirmed during the year	2,851.3	2,481.1
Confirmed invoices paid during the year	2,915.0	2,499.4
Confirmed obligations outstanding at the end of the year	344.8	326.5

Financial instruments

Accounting policy – derivative financial instruments and hedging activities

We measure all derivative financial instruments based on fair values derived from level 2 input criteria. We adopt

hedge accounting for hedges that are highly effective in offsetting the identified hedged risks taking into account

required effectiveness criteria.

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and subsequently

remeasured. The method of recognizing the resulting gain or loss depends on whether the derivative is designated

as a hedging instrument, and if so, the nature of the item being hedged. We designate derivatives as one of the

following:

•A hedge of an exposure relating to changes in the fair value of a recognized asset or liability, that is attributable

to a particular risk (fair value hedge)

•A hedge of an exposure relating to the variability in the cash flows of a recognized asset or liability, or of a

forecasted transaction, that is attributable to a particular risk (cash flow hedge)

•A hedge of the foreign currency exposure relating to a net investment in a foreign operation (net investment

hedge)

We assess at the inception of the transaction the relationship between hedging instruments and hedged items, as

well as our risk management objectives and strategy for undertaking various hedging transactions. We also assess,

both at hedge inception and on an ongoing basis, whether derivatives that are used in hedging transactions are

highly effective in offsetting changes in fair values or cash flows of hedged items. The cash flows resulting from the

derivative financial instruments are classified in the Consolidated statements of cash flows according to the nature

of the hedged item.

Fair value hedge

Changes in the fair value of a derivative financial instrument that is designated and qualified as a fair value hedge,

along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in the

Consolidated statements of operations.

Hedge accounting is discontinued when we revoke the hedging relationship, or the hedging instrument expires

or is sold, terminated or exercised, or no longer qualifies for hedge accounting. The adjustment to the carrying

amount of the hedged item arising from the hedged risk is amortized to the Consolidated statements of operations

from that date.

Interest rate swaps that are being used to hedge the fair value of fixed loan coupons payable are designated as fair

value hedges. The change in fair value is intended to offset the change in the fair value of the underlying fixed loan

coupons, which is recorded accordingly. The gain or loss relating to the ineffective portion of interest rate swaps

hedging fixed loan coupons payable is recognized in the Consolidated statements of operations as Interest and

other, net.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	321
Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Cash flow hedge

Changes in the fair value of a derivative that is designated and qualified as a cash flow hedge are recorded in OCI,

net of taxes, until the underlying hedged transaction is recognized in the Consolidated statements of operations.

In the event that the underlying hedged transaction will not occur within the specified time period, the gain or loss on

the related cash flow hedge is released from OCI and included in the Consolidated statements of operations, unless

extenuating circumstances exist that are related to the nature of the forecasted transaction and are outside our

control or influence and which cause the forecasted transaction to be probable of occurring on a date that is beyond

the specified time period.

Foreign currency hedging instruments that are being used to hedge cash flows related to forecasted sales or

purchase transactions in non-functional currencies are designated as cash flow hedges. The gain or loss relating to

the ineffective portion of the foreign currency hedging instruments is recognized in the Consolidated statements of

operations in net sales or cost of sales.

Fair values of the derivatives

The following table summarizes the notional amounts and estimated fair values of our derivative financial instruments:

Year ended December 31 (€, in millions)	2024		2025
	Notional<br><br>amount	Fair value	Notional<br><br>amount	Fair value
Forward foreign exchange contracts	240.6	44.5	755.8	(11.5)
Interest rate swaps	3,250.0	(61.6)	2,250.0	(47.9)

The following table summarizes our derivative financial instruments per category:

Year ended December 31 (€, in millions)	2024		2025
	Assets	Liabilities	Assets	Liabilities
Interest rate swaps – fair value hedges	9.3	70.9	0.2	48.1
Forward foreign exchange contracts – cash flow<br><br>hedges	31.5	0.1	0.9	21.6
Forward foreign exchange contracts – no hedge<br><br>accounting	55.7	42.6	32.5	23.3
Total	96.5	113.6	33.6	93.0
Less non-current portion:
Interest rate swaps – fair value hedges	—	29.3	—	19.9
Total non-current portion	—	29.3	—	19.9
Total current portion	96.5	84.3	33.6	73.1

The fair value part of a hedging derivative financial instrument that has a remaining term of 12 months or less after

balance sheet date is classified as current asset or liability. When the fair value part of a hedging derivative has a term

of more than 12 months after balance sheet date, it is classified as non-current asset or liability. Derivative financial

instruments are included in Other assets and Accrued and other liabilities in the Consolidated balance sheets, split

between current and non-current.

Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. The fair value measurement hierarchy prioritizes the inputs

to valuation techniques used to measure fair value as follows:

•Level 1: Valuations based on inputs such as quoted prices for identical assets or liabilities in active markets that

the entity has the ability to access.

•Level 2: Valuations based on inputs other than level 1 inputs such as quoted prices for similar assets or liabilities,

quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by

observable data for substantially the full term of the assets or liabilities.

•Level 3: Valuations based on inputs that are supported by little or no market activity and that are significant to the

fair value of the assets or liabilities.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets

or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). A financial instrument’s fair value

classification is based on the lowest level of any input that is significant in the fair value measurement hierarchy.

For assets and liabilities that are recognized at fair value on a recurring basis, we determine whether transfers have

occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is

significant to the fair value measurement as a whole) at the end of each reporting period.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	322
Financial statements	Notes	Appendices	Definitions
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Notes to the Consolidated financial statements (continued)

Financial assets and financial liabilities measured at fair value on a recurring basis

Investments in money market funds (included in our cash and cash equivalents) have fair value measurements which

are all based on quoted prices for identical assets or liabilities.

Our short-term investments consist of deposits with original maturities to the entity holding the investments longer

than three months and one year or less at the date of acquisition with financial institutions that have investment-grade

credit ratings. The fair value of the deposits is determined with reference to quoted market prices in an active market

for similar assets or discounted cash flow analysis.

The principal market in which we execute our derivative contracts is the institutional market in an over-the-counter

environment with a high level of price transparency. The market participants usually are large commercial banks. The

valuation inputs for our derivative contracts are based on quoted prices and quoting pricing intervals from public data

sources; they do not involve management judgment.

The valuation technique used to determine the fair value of forward foreign exchange contracts (used for hedging

purposes) approximates the net present value technique which is the estimated amount that a bank would receive or

pay to terminate the forward foreign exchange contracts at the reporting date, taking into account current interest

rates and current exchange rates.

The valuation technique used to determine the fair value of interest rate swaps (used for hedging purposes) is the net

present value technique, which is the estimated amount that a bank would receive or pay to terminate the swap

agreements at the reporting date, taking into account current interest rates.

Three out of five of our outstanding Eurobonds, with a combined principal amount of €2.25 billion, serve as hedged

items in fair value hedge relationships in which we hedge the variability of changes in the fair value of our Eurobonds

due to changes in market interest rates with interest rate swaps. For two out of five of our outstanding Eurobonds,

with a combined principal amount of €1.5 billion, no hedging is applied. The fair value changes of the interest rate

swaps are recorded on the Consolidated balance sheets under derivative financial instruments and the carrying

amounts of the Eurobonds are adjusted for the effective portion of these fair value changes only. For the actual

aggregate carrying amount and the fair value of our Eurobonds, see Note 16 Long-term debt, short-term borrowings,

interest and other, net.

The following tables present our financial assets and financial liabilities that are measured at fair value on a recurring

basis and the assets and liabilities for which the fair value is only disclosed:

Year ended December 31, 2025 (€, in millions)	Level 1	Level 2	Level 3	Total
Assets measured at fair value
Derivative financial instruments1	—	33.6	—	33.6
Money market funds2	6,222.2	—	—	6,222.2
Short-term investments3	—	405.9	—	405.9
Total	6,222.2	439.5	—	6,661.7
Liabilities measured at fair value
Derivative financial instruments1	—	93.0	—	93.0
Assets and liabilities for which fair values are disclosed
Loans receivable	—	—	1,848.9	1,848.9
Long-term debt4	3,590.8	—	—	3,590.8	Year ended December 31, 2024 (€, in millions)	Level 1	Level 2	Level 3	Total
---	---	---	---	---
Assets measured at fair value
Derivative financial instruments1	—	96.5	—	96.5
Money market funds2	6,379.2	—	—	6,379.2
Short-term investments3	—	5.4	—	5.4
Total	6,379.2	101.9	—	6,481.1
Liabilities measured at fair value
Derivative financial instruments1	—	113.6	—	113.6
Assets and liabilities for which fair values are disclosed
Loans receivable	—	—	1,339.4	1,339.4
Long-term debt4	4,561.8	—	—	4,561.8

1.Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps.

2.Money market funds are part of our cash and cash equivalents.

3.Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but one year

or less at the date of acquisition. These deposits are valued at amortized costs which is close to their fair value. Their fair value is determined

with reference to quoted market prices in an active market for similar assets or discounted cash flow analysis.

4.Long-term debt mainly relates to Eurobonds.

There were no transfers between levels during the years ended December 31, 2025, and December 31, 2024.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	323
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Financial assets and financial liabilities that are not measured at fair value

The carrying amount of cash and cash equivalents, accounts payable, and other current financial assets and liabilities

approximate their fair value because of the short-term nature of these instruments. The fair value of the loan to Carl

Zeiss SMT GmbH is determined using a discounted cash flow model, which considers the present value of expected

cash receipts, discounted using a risk-adjusted discount rate. For the actual aggregate carrying amount of the loan to

Carl Zeiss SMT GmbH, see Note 26 Related parties and variable interest entities.

Money market and investment funds measurement

Money market and investment funds qualify as available for sale securities. Due to the short-term nature and

investment-grade credit ratings, the fair value is close to the carrying value. These money market funds can be called

on a daily basis. Investments and redemptions in money market funds are managed on a daily basis based triggered

through actual cash balances. ASML does not have trading securities as of December 31, 2025.

Deposits measurement

The deposits as part of the cash and cash equivalents and short-term investments qualify as securities held to

maturity. The amortized cost value is close to the fair value and carrying value due to short-term nature and since

related to investment with investment-grade credit ratings. Maturities are one year or less. No held to maturity

securities were sold before expiration date.

Assets and liabilities measured at fair value on a non-recurring basis

In 2024 and 2025, we had no significant fair value measurements on a non-recurring basis from regular business

activities. For impairment charges regarding goodwill and other intangible assets, reference is made to Note 11.

Goodwill and 12. Intangible assets, net respectively.

26. Related parties and variable interest entities

Carl Zeiss SMT GmbH is our single supplier, and we are their single customer, of optical columns for lithography

systems. Carl Zeiss SMT GmbH is capable of developing and producing these items only in limited numbers and only

through the use of manufacturing and testing facilities in Oberkochen and Wetzlar, Germany. Our relationship with

Carl Zeiss SMT GmbH is structured as a strategic alliance that is run under the principle of ‘two companies, one

business’ and is focused on continuous innovation and improvement of operational excellence in the lithography

business.

We have a 24.9% interest in Carl Zeiss SMT Holding GmbH & Co. KG (ultimate parent is Carl Zeiss AG), which owns

100% of the shares in Carl Zeiss SMT GmbH. As we are able to exercise significant influence over the entity, Carl

Zeiss SMT Holding GmbH & Co. KG and its subsidiaries are considered related parties. Additionally, we have

determined that Carl Zeiss SMT Holding GmbH & Co. KG is a VIE mainly because the entity was established without

substantive voting rights, since there is disparity between our voting rights and our economics, and substantially all of

Carl Zeiss SMT Holding GmbH & Co. KG’s activities involve us or are conducted on our behalf. However, we are not

the primary beneficiary of the VIE, because we lack the power to direct the activities that most significantly impact

Carl Zeiss SMT Holding GmbH & Co. KG’s economic performance.

We have had several framework agreements in place with Carl Zeiss SMT GmbH since 1997.

2021 framework agreement

We entered into a framework agreement in September 2021 with Carl Zeiss SMT GmbH, with effect as of the

beginning of 2021. This agreement, which we refer to as the 2021 framework agreement, replaced our key existing

framework agreements and continued our strategic alliance to meet end customer demand. The key components to

the framework agreement are:

•A behavior and interaction model that fosters mutual respect and understanding

•A governance model that enables both companies to become more effective and aligned in their decision-making

and the execution of the strategy in the business via mutual approval on (i) certain investment decisions affecting

the lithography business, and (ii) the requirements of all products supplied by Carl Zeiss SMT GmbH

•A variable pricing model for purchases of products and services determined by the annual financial performance

of both ASML and Carl Zeiss SMT GmbH in the lithography business

•Cash support via additional prepayments on product deliveries to ensure Carl Zeiss SMT GmbH a minimum

adjusted free cash flow floor in an annual period, if certain criteria are met

•A commitment from ASML to finance the capital expenditures of Carl Zeiss SMT GmbH if Carl Zeiss SMT GmbH’s

investments required to execute on the lithography business roadmap exceed certain thresholds, measured

annually

The financing takes place through loan agreements, with the key terms being:

•Ten-year loan terms with linear annual repayment after a three-year grace period

•Interest rate subject to a floor of 0.01% and a cap of 1%

•Voluntary repayment option without penalty

•The loans are secured by a parental guarantee from Carl Zeiss AG

The loans are measured at amortized cost and presented within the Consolidated balance sheets as Loans

receivable.

The cash outflows from ASML in the variable pricing model for purchases of products and services consists of two

elements. The first is cash outflows for purchasing products and services reflected in our inventory valuation and cost

of sales. The second consists of R&D funding for High NA to Carl Zeiss SMT GmbH, for which these costs are

presented within Research and development costs. For 2025, the related R&D funding amounted to €22.5 million

(

2024

: €45.1 million;

2023

: €67.6 million).

In addition to the High NA support, we make non-interest-bearing advance payments to support Carl Zeiss SMT

GmbH’s work-in-process. These payments are made to secure optical column deliveries and these advance

payments are settled through future lens or optical column deliveries, and are also presented in Other assets.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	324
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

2021 loan agreement

In September 2021, we entered into a loan agreement with Carl Zeiss SMT GmbH for up to €1 billion. As of December

31, 2025, we have financed a total amount of €839.1 million (December 31, 2024: €912.4 million) through this loan

agreement. As of September 30, 2024, the undrawn amount of €87.6 million was cancelled. The amortized cost of this

loan is equal to its face value and the effective interest rate equals the contractual rate.

2024 loan agreement

In September 2024, we entered into a second loan agreement with Carl Zeiss SMT GmbH for up to €1 billion. As of

December 31, 2025, the drawn down amount was €610.0 million with an amortized cost of €527.1 million, an

unamortized discount of €68.0 million and an effective interest rate of 3.1%. The discount to the 2024 loan is

presented within Other assets as Advanced payments to Carl Zeiss SMT GmbH.

2025 restatement of the 2021 framework agreement

In May 2025 the 2021 framework agreement was restated. The main change introduced by the restatement relates to

ASML’s commitment to finance Carl Zeiss SMT GmbH’s capital expenditures under certain conditions. The terms and

conditions applicable to these loans as from 2025 are:

•Loans are interest-free with an expected repayment term of either 7 or 15 years

•Variable quarterly repayments based on Carl Zeiss SMT GmbH’s actual revenue during a given year, subject to a

certain corridor

•First repayment after a three-year grace period

•The loans are secured by a parental guarantee from Carl Zeiss AG

In addition, ASML has committed to support Carl Zeiss SMT GmbH in meeting their supply chain obligations by

providing short-term loans as from 2025 subject to the following terms and conditions:

•Loans are interest free and have a term of 1 year

•Full repayment upon maturity

The loans are measured at amortized cost and presented within the Consolidated balance sheets as Loans

receivable.

2025 loan agreements

In July 2025 we provided a loan to Carl Zeiss SMT GmbH for an amount of €444 million. As of December 31, 2025 the

amortized cost is €333.2 million, with an unamortized discount of €110.8 million and an effective interest rate of 3.3%.

In June 2025 we provided a short-term loan to Carl Zeiss SMT GmbH for an amount of €169 million. This loan was

fully repaid in November 2025.

In November 2025 we provided another short-term loan to Carl Zeiss SMT GmbH for an amount of €212.5 million. As

of December 31, 2025 the amortized cost is €208.1 million, with an unamortized discount of €4.8 million and an

effective interest rate of 2.8%.

The discounts to the 2025 loans are presented within Other assets as Advanced payments to Carl Zeiss SMT GmbH.

The below table shows the outstanding balances with Carl Zeiss SMT Holding GmbH & Co. KG and its subsidiaries in

our Consolidated balance sheets, as well as our maximum exposure to losses:

Year ended December 31 (€, in millions)	2024	2025	Maximum<br><br>exposure to loss
Advance payments included in Other assets	1,415.7	1,191.9	1,191.9
Loans receivable	1,440.8	1,907.5	1,907.5
Investment agreement for 24.9% equity	903.0	822.6	822.6
Accounts receivable	70.8	1.1	1.1
Accounts payable	955.8	1,085.8	—
Cost to be paid included in Accrued and other liabilities	199.9	123.0	—

The Advance payments included in Other assets includes €330.9 million related to amounts paid prior to the 2021

framework agreement. Our maximum exposure to loss related to our involvement in Carl Zeiss SMT Holding GmbH &

Co. KG as a VIE includes the carrying value of each of the assets, as well as the risk of any future operating losses of

Carl Zeiss SMT Holding GmbH & Co. KG, which cannot be quantified.

The total purchases from Carl Zeiss SMT Holding GmbH & Co. KG and its subsidiaries are as follows:

Year ended December 31 (€, in millions)	2023	2024	2025
Total purchases	3,325.9	3,946.5	4,406.9

Other related party considerations

Except as described above, there have been no transactions between ASML or any of its subsidiaries, any other

significant shareholder, any director or officer, or any relative or spouse thereof, other than arrangements in the

ordinary course of business. During our most recent fiscal year, there has been no, and at present there is no,

outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof.

Furthermore, ASML has not granted any personal loans, guarantees or the like to members of the Board of

Management or Supervisory Board.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	325
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

27. Subsequent events

Subsequent events were evaluated up to February 25, 2026, which is the date the Consolidated financial statements

included in this Annual Report were approved.

On January 28, 2026, ASML announced the intent to strengthen its focus on engineering and innovation in critical

areas of the company through the streamlining of the Technology and the IT organizations. The proposed changes

could ultimately result in a net reduction of around 1,700 positions, mostly in the Netherlands, with some in the United

States. The anticipated expenses related to this are not expected to be material.

On January 28, 2026, ASML announced to declare a total dividend for the year 2025 of €7.50 per ordinary share,

which is a 17.2% increase compared to the 2024 total dividend of €6.40 per ordinary share. Recognizing the interim

dividends of €1.60 per ordinary share paid in August 2025, November 2025 and February 2026, this leads to a final

dividend proposal to the General Meeting of €2.70 per ordinary share.

On January 28, 2026, ASML announced a new share buyback program to be executed by December 31, 2028. See

Note 22 Shareholders’ equity.

Veldhoven, the Netherlands

February 25, 2026

/s/ Christophe D. Fouquet

Christophe D. Fouquet

President, CEO and Chair of the Board of Management

/s/ Roger J.M. Dassen

Roger J.M. Dassen

Executive Vice President, CFO and member of the Board of Management

Other appendices_v3.jpg

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	326
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Other

appendices

327	Principal accountant fees and services
328	Property, plant and equipment
329	Dutch and US taxation
334	Financing policy
336	Exchange controls
337	Documents on display
338	Controls and procedures
339	Financial calendar and investor relations
340	ASML contact information
341	Reference table 20-F
343	Definitions
350	Signatures
351	Exhibit index
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	327
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Principal accountant fees and services

PricewaterhouseCoopers Accountants N.V. (PwC) has served as our independent registered public accounting firm

for the year ended December 31, 2025. As predecessor auditor, KPMG Accountants N.V. (KPMG) was involved as

independent registered public accounting firm for the year ended December 31, 2024. The following table sets out the

aggregate fees for professional audit services and other services rendered by both KPMG, PwC and their member

firms and affiliates in 2025 and 2024:

Year ended December 31	2024			2025
(€, in thousands)	KPMG<br><br>Accountants<br><br>N.V.	KPMG<br><br>Network	Total	PwC<br><br>Accountants<br><br>N.V.	PwC Network	Total
Audit fees	3,857	1,188	5,045	4,728	1,381	6,109
Audit-related fees	812	13	825	875	—	875
Tax fees	—	—	—	—	—	—
All other fees	85	2	87	119	—	119
Principal accountant fees	4,754	1,203	5,957	5,722	1,381	7,103

Audit fees and audit-related fees

Our independent registered public accounting firm is PricewaterhouseCoopers Accountants N.V., Amsterdam, The

Netherlands, Auditor Firm ID: 1395. Audit fees relate to the audit of the Financial statements as set out in this Annual

Report, certain quarterly procedures, services related to offering memoranda, as well as our statutory and regulatory

filings of our subsidiaries. These fees relate to the audit of the respective Financial statements, regardless of whether

the work was performed during the financial year. Other audit-related fees are predominantly related to assurance

services on the Sustainability statements. All other fees relate to certain agreed-upon procedures that are requested

by the Supervisory Board or external parties.

All audit fees, audit-related fees and permitted services that the independent auditor provides are subject to pre-

approval by the Audit Committee. The Audit Committee pre-approved all audit and non-audit services, the external

audit plan and the audit fees for the years 2025 and 2024.

The Audit Committee monitors compliance with the Dutch and EU regulations and SEC rules on non-audit services

provided by an independent registered public accounting firm, which outline strict separation of audit and advisory

services for Dutch public interest entities and public companies that have shares registered with the SEC.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	328
Financial statements	Notes	Appendices	Definitions
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Appendix – Property, plant and equipment

We lease a number of our facilities under operating leases. We also own a number of buildings, mainly consisting of

production facilities in Veldhoven (the Netherlands), in Berlin (Germany), in Wilton, Connecticut, San Diego and

California (US), in Linkou and Tainan (Taiwan) and in Pyeongtaek (South Korea). The book value of land and buildings

owned amounts to €4,801.6 million as of December 31, 2025, compared to €4,028.6 million as of December 31, 2024.

Read more in Financial statements – Consolidated financial statements – Notes to the Consolidated financial statements – 13. Property,

plant and equipment, net.

Our capital expenditures (purchases of property, plant and equipment – see the Consolidated statements of cash

flows as recorded in the Consolidated financial statements) for

2025

2024

and

2023

, amounted to €1,573.6 million,

€2,067.2 million and €2,155.6 million, respectively.

We expect that our capital expenditures (purchases of property, plant and equipment) in

2026

will be approximately

€1.9 billion. These expenditures are expected to mainly consist of further expansion and upgrades of facilities as well

as tooling and machinery. We expect to finance these capital expenditures through cash generated by operations and

existing cash and cash equivalents.

Facilities in EMEA

Our headquarters, mainly manufacturing and R&D facilities, are located in Veldhoven, the Netherlands. This campus in

combination with other locations in the Netherlands includes 285 thousand square meters of office space and 72

thousand square meters of clean room used for manufacturing and R&D. In Veldhoven and in the greater Eindhoven

area, there are also 73 thousand square meters of warehouse/storage space and 11 thousand square meters of labs.

Our main facilities in Veldhoven (and other buildings in the greater Eindhoven area) in the Netherlands are partly

owned and partly leased office and industrial buildings. Our Berlin campus consists of 10 buildings which are mainly

owned properties with a total floor area of 53 thousand square meters. We also lease several sales and service/field

offices across Europe consisting of 5 thousand square meters.

Facilities in the US

Our US head office is located in a 3 thousand square meters office building in Chandler, Arizona. We maintain R&D

and manufacturing operations in a 89 thousand square meters campus which consists of five buildings in Wilton,

Connecticut. Our campus in San Jose, California consists of two buildings totaling 20 thousand square meters mainly

for office and R&D activities. Furthermore, our campus in San Diego, California comprises 50 thousand square meters

for office, R&D, manufacturing and warehouse purposes. We also lease several sales and service/field/training offices

across the US consisting of 24 thousand square meters with expansions in Boise, Albany, Richardson and Phoenix.

Facilities in Asia

Our key locations in Asia are Taiwan, South Korea and China, where we have local service, sales, training centers and

manufacturing activities. Our facility in Linkou, Taiwan is comprised of a manufacturing area that is approximately 10

thousand square meters and office space that is approximately 8 thousand square meters. Our facility in Tainan,

Taiwan consists of 26 thousand square meters utilized for manufacturing and office space. We moved our campus in

Hwaseong, South Korea to two new owned buildings of 29 thousand square meters for office, training and local

repairs. Our Cymer facility in Pyeongtaek, South Korea is a manufacturing site of light sources. The extension finalized

in 2025 to a 13 thousand square meters site. In Beijing, China, we also have facilities including HMI with a combined

floor area of 4 thousand square meters for manufacturing and office space. We also lease several sales and service/

field offices across Taiwan, South Korea, China, Japan, Singapore and Malaysia consisting of 49 thousand square

meters.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	329
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Dutch and US taxation

The statements below represent a summary of current Dutch tax laws, regulations and judicial interpretations thereof.

The description is limited to the material tax implications for a holder of ordinary shares who is not, and/or is not

deemed to be, a resident of the Netherlands for Dutch tax purposes (‘Non-Resident Holder’). This summary does not

address special rules that may apply to special classes of holders of ordinary shares and should not be read as

extending by implication to matters not specifically referred to herein. Moreover, this summary does not discuss the

Dutch tax treatment of individual Non-Resident Holders who receive income or derive capital gains from the ordinary

shares and the income received or capital gains derived are attributable to the past, present or future employment

activities of such holder. As to individual tax consequences, each investor in our ordinary shares should consult his or

her tax counsel.

General

The acquisition of ordinary shares by a non-resident of the Netherlands should in itself not be treated as a taxable

event for Dutch tax purposes. The material tax consequences in connection with owning and disposing of our

ordinary shares are discussed below.

Substantial interest

A person that, (inter alia) directly or indirectly, and either independently or jointly with his or her partner (as defined in

the Dutch Personal Income Tax Act 2001), owns 5.0% or more of our subscribed share capital, owns profit

participating rights that correspond to at least 5.0% of the annual profits of a Dutch company or to at least 5.0% of

the liquidation proceeds of such company or holds options to purchase 5.0% or more of our subscribed share capital,

is deemed to have a substantial interest in our shares, or our options, as applicable. In addition, a shareholder has a

substantial shareholding if he or she directly or indirectly owns at least 5% of the voting rights in the General Meeting

of shareholders. Specific rules apply in case certain family members of the Non-Resident Holder hold a substantial

interest. A deemed substantial interest also exists if (part of) a substantial interest has been disposed of, or is deemed

to be disposed of, in a transaction where no taxable gain has been recognized. Specific attribution rules exist in

determining the presence of a substantial interest.

Please note, substantial shareholders who emigrate, and non-residents who inherit a substantial shareholding, are

provisionally subject to an exit tax on capital gains on a deemed alienation of the shareholding. The exit tax is

imposed on the difference between the fair market value at the time of emigration and the acquisition price of the

substantial shareholding. The tax is levied by imposing a preservative tax assessment. If certain conditions are met,

interest-free deferral of the payment of the taxable amount applies. No immediate tax has to be paid, but the tax will

be due on the moment of the actual disposal of the shares at any point following the emigration.

Income tax consequences for individual Non-Resident Holders on owning and disposing of the

ordinary shares

Capital gains on shares are only taxable in the Netherlands if the shareholding constitutes a substantial shareholding.

An individual who is a Non-Resident Holder will therefore not be subject to Dutch income tax on received income in

respect of our ordinary shares or capital gains derived from the sale, exchange or other disposition of our ordinary

shares, provided that such holder:

•Does not hold and has not held a (deemed) substantial interest in our share capital or, in the event the Non-

Resident Holder holds or has held a (deemed) substantial interest in our share capital, such interest is, or was,

a business asset in the hands of the holder;

•Does not carry on and has not carried on a business in the Netherlands through a (deemed) permanent

establishment or a permanent representative to which the ordinary shares are attributable;

•Does not share and has not shared directly (through the beneficial ownership of ordinary shares or similar

securities) in the profits of an enterprise managed and controlled in the Netherlands which (is deemed to) own(s),

or (is deemed to have) has owned, our ordinary shares; and

•Does not carry out and has not carried out any activities which generate taxable profit in the Netherlands or

taxable income in the Netherlands to which the holding of our ordinary shares was connected.

Corporate income tax consequences for corporate Non-Resident Holders

Income derived from ordinary shares or capital gains derived from the sale, exchange or disposition of ordinary

shares by a corporate Non-Resident Holder is taxable if:

•The holder carries on a business in the Netherlands through a permanent establishment or a permanent

representative in the Netherlands (Dutch enterprise) and the ordinary shares are attributable to this permanent

establishment or permanent representative, unless the participation exemption (discussed below) applies; or

•The holder has a substantial interest in our share capital, which is held with the primary aim or one of the primary

aims to avoid the levy of income tax at the level of another person and which is not put into place with valid

commercial reasons that reflect economic reality; or

•The holder is a resident of Aruba, Curacao or Saint Martin with a permanent establishment or permanent

representative in Bonaire, Eustatius or Saba to which our ordinary shares are attributable and certain conditions

are met; or

•Certain assets of the holder are deemed to be treated as a Dutch enterprise under Dutch tax law and the ordinary

shares are attributable to this Dutch enterprise.

To qualify for the Dutch participation exemption, the holder must generally hold at least 5.0% of our nominal paid-in

capital and meet certain other requirements.

Dividend withholding tax

In general, a dividend distributed by us in respect of our ordinary shares will be subject to a withholding tax imposed

by the Netherlands at the statutory rate of 15.0%.

Dividends include:

•Dividends in cash and in kind.

•Deemed and constructive dividends.

•Consideration for the repurchase or redemption of ordinary shares (including a purchase by a direct or indirect

ASML subsidiary) in excess of qualifying average paid-in capital unless such repurchase is made for temporary

investment purposes or is exempt by law.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	330
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Dutch and US taxation (continued)

•Stock dividends up to their nominal value (unless distributed out of qualifying paid-in capital).

•Any (partial) repayment of paid-in capital not qualifying as capital for Dutch dividend withholding tax purposes.

•Liquidation proceeds in excess of qualifying average paid-in capital for Dutch dividend withholding tax purposes.

Under certain circumstances, a reduction of Dutch dividend withholding tax can be obtained:

•If the shareholder is considered a tax resident in the Netherlands, an exemption at source is available if (i) the

participation exemption applies (or participation settlement is applicable) or (ii) the distributing entity and recipient

are included in a Dutch fiscal unity for CIT purposes, both under the condition that the ordinary shares are

attributable to a business carried out in the Netherlands and the shareholder can demonstrate to be the beneficial

owner of the distributed dividend. However, if the withheld dividend tax in the calendar year amounts to €1,000 or

less, the burden of proof remains with the Dutch tax authorities.

•An exemption at source is available for dividend distributions to certain qualifying EU/EEA tax resident Corporate

Holders that own an interest that would qualify for the Dutch participation exemption (i.e. interest of >5%), unless

such holder holds our ordinary shares with the primary aim (or one of the primary aims) of avoiding the levy of

Dutch dividend withholding tax at the level of another person and our ordinary shares are not held for valid

commercial reasons that reflect economic reality. This is under the condition that the shareholder can

demonstrate to be the beneficial owner of the distributed dividend. However, if the withheld dividend tax in the

calendar year amounts to €1,000 or less, the burden of proof remains with the Dutch tax authorities.

•An exemption at source is available for dividend distributions to certain qualifying Corporate Holders that are tax

resident in a non-EU/EEA jurisdiction with which the Netherlands has concluded a tax treaty that includes a

qualifying dividend article and that own an interest that would qualify for the Dutch participation exemption (i.e.

interest of >5%), unless such holder holds our ordinary shares with the primary aim (or one of the primary aims) of

avoiding the levy of Dutch dividend withholding tax at the level of another person and our ordinary shares are not

held for valid commercial reasons that reflect economic reality. This is under the condition that the shareholder

can demonstrate to be the beneficial owner of the distributed dividend. However, if the withheld dividend tax in

the calendar year amounts to €1,000 or less, the burden of proof remains with the Dutch tax authorities.

•Certain tax exempt organizations (e.g. pension funds and excluding collective investment vehicles) resident in EU/

EEA member states or in qualifying non-EU/EEA states may be eligible for a refund of Dutch dividend withholding

tax upon their request. This is under the condition that the shareholder can demonstrate to be the beneficial

owner of the distributed dividend. However, if the withheld dividend tax in the calendar year amounts to €1,000 or

less, the burden of proof remains with the Dutch tax authorities.

•Upon request and under certain conditions, certain qualifying Non-Resident Individual and Corporate Holders of

ordinary shares resident in EU/EEA member states or in a qualifying non-EU/EEA state may be eligible for a refund

of Dutch dividend withholding tax insofar as the withholding tax levied is higher than the personal and CIT which

would have been due if they were resident in the Netherlands. This is under the assumption that these

shareholders can demonstrate to be the beneficial owner of the distributed dividend. However, if the withheld

dividend tax in the calendar year amounts to €1,000 or less, the burden of proof remains with the Dutch

tax authorities.

If the Dutch dividend withholding tax exemption is not applicable, a Non-Resident Holder of ordinary shares can still

be eligible for a partial or complete exemption or refund of all or a portion of the above withholding tax under a tax

treaty that is in effect between the Netherlands and the Non-Resident Holder’s country of residence. The Netherlands

has concluded such treaties with the US, Canada, Switzerland, Japan, most EU member states and many

other countries.

In case an anti-abuse rule (among which a limitation of benefits rule) is included in the relevant tax treaty or opted in

by both the Netherlands and the Non-Resident Holder’s country of residence via the OECD multilateral instrument,

benefits under a tax treaty will only be granted if it can be demonstrated that the Non-Resident Holder complies with

the anti-abuse rule requirements. In general, the decisive criterion is the principle purpose test (although the anti-

abuse rule could vary per tax treaty), based on which it should be determined whether obtaining a treaty benefit is not

one of the principal purposes of the arrangement or transaction.

Under the treaty between the US and the Netherlands for the Avoidance of Double Taxation and the Prevention of

Fiscal Evasion with Respect to Taxes on Income (‘US Tax Treaty’), dividends paid by us to a Non-Resident Holder

that is a resident of the US as defined in the US Tax Treaty (other than an exempt organization or exempt pension

trust, as discussed below) are generally liable to 15.0% Dutch withholding tax or, in the case of certain US corporate

shareholders owning directly at least 10.0% of our voting power, a reduction to 5.0% Dutch withholding tax, provided

that the holder is the beneficial owner of the dividends received and does not have an enterprise or an interest in an

enterprise that is, in whole or in part, carried on through a permanent establishment or permanent representative in

the Netherlands to which the dividends are attributable. The US Tax Treaty also provides for a dividend withholding

tax exemption on dividends, but only for a shareholder owning directly at least 80.0% of our voting power and

meeting all other requirements. The US Tax Treaty provides for a complete exemption from tax on dividends received

by exempt pension trusts and exempt organizations, as defined therein. Except in the case of exempt organizations,

the reduced dividend withholding tax rate (or exemption from withholding) can be applied at the source upon

payment of the dividends, provided that the proper forms have been filed in advance of the payment. Exempt

organizations, in principle, remain subject to the statutory withholding rate of 15.0% and are required to file for a

refund of such withholding; however, such organizations may become eligible for the exemption at source when the

domestic law as described above has entered into force. Please note, in case an anti-abuse rule is included in a tax

treaty (e.g. principle purpose test), benefits under a tax treaty will only be granted if obtaining a treaty benefit is not

one of the principal purposes of the arrangement or transaction.

A Non-Resident Holder may not claim the benefits of the US Tax Treaty unless (i) he/she is a resident of the US as

defined therein, or (ii) he/she is deemed to be a resident on the basis of the provisions of article 24(4) of the US Tax

Treaty and (iii) his or her entitlement to those benefits is not limited by the provisions of article 26 (limitation on

benefits) of the US Tax Treaty.

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Financial statements	Notes	Appendices	Definitions
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Appendix – Dutch and US taxation (continued)

Dividend stripping rules

Under Dutch tax legislation regarding anti-dividend stripping, no exemption from, or refund of, Dutch dividend

withholding tax is granted if the recipient of dividends paid by us can not demonstrate to be the beneficial owner of

such dividends. However, if the withheld dividend tax in the calendar year amounts to €1,000 or less, the burden of

proof remains with the Dutch tax authorities.

Conditional dividend withholding tax

A 25.8% conditional dividend withholding tax is (under certain circumstances) applicable on dividend distributions

made to holders tax resident in low-tax or non-cooperative jurisdictions, to recipients who qualify as hybrid entities, or

in abusive situations, provided that the holder is an entity that has an interest representing more than 50% of our

statutory voting rights. If both Dutch dividend withholding tax and Dutch conditional dividend withholding tax are due,

a credit of the amount of dividend withholding tax applies to the conditional dividend withholding tax.

Gift or inheritance taxes

Dutch gift or inheritance taxes will not be levied on the transfer of ordinary shares by way of gift or upon the death of a

Non-Resident Individual, unless the transfer is construed as an inheritance or as a gift made by or on behalf of a

person who, at the time of the gift or death, is deemed to be resident in the Netherlands.

Gift tax and inheritance tax are levied on the beneficiary. For the purposes of Dutch gift and inheritance tax, an

individual of Dutch nationality is deemed to be a resident of the Netherlands if he/she has been a resident thereof at

any time during the 10 years preceding the time of the gift or death. For the purposes of Dutch gift tax, a person not

possessing Dutch nationality is deemed to be a resident of the Netherlands if he/she has resided therein at any time in

the 12 months preceding the gift.

Value-added tax

No Dutch VAT is imposed on dividends in respect of our ordinary shares or on the transfer of our shares.

Residence

A Non-Resident Holder will not become resident, or be deemed to be resident, in the Netherlands solely as a result of

holding our ordinary shares or of the execution, performance, delivery and/or enforcement of rights in respect of our

ordinary shares.

A Non-Resident Holder could qualify as a foreign taxpayer for Dutch CIT purposes in relation to dividend income and

capital gains realized from holding our ordinary shares if the following conditions are cumulatively met:

•The Non-Resident Holder owns an interest that qualifies as a substantial interest (i.e. at least 5%);

•The Non-Resident Holder is used with the primary intention (or one of the primary intentions) of evading Dutch

personal income tax at the level of its (ultimate) shareholders (abusive case); and

•The structure is considered artificial – that is, not based on sound business reasons that reflect the

economic reality.

Non-resident corporate shareholders/members subject to the non-resident taxation will be subject to Dutch CIT at the

statutory CIT rate of 25.8% on dividend income and (deemed) capital gains.

US taxation

The following is a discussion of the material US federal income tax consequences relating to the acquisition,

ownership and disposition of ordinary shares by a United States Holder (as defined below) acting in the capacity of a

beneficial owner who is not a tax resident of the Netherlands. This discussion deals only with ordinary shares held as

capital assets and does not deal with the tax consequences applicable to all categories of investors, some of which

(such as tax-exempt entities, financial institutions, regulated investment companies, dealers in securities/traders in

securities that elect a mark-to-market method of accounting for securities holdings, insurance companies, investors

owning directly, indirectly or constructively 10.0% or more of our outstanding shares, investors who hold ordinary

shares as part of hedging or conversion transactions and investors whose functional currency is not the US dollar)

may be subject to special rules. In addition, the discussion does not address any alternative minimum tax or any

state, local, Foreign Investment in Real Property Tax Act-related US federal income tax consequences, or non-US

tax consequences.

This discussion is based on the US–Netherlands income tax treaty, the Internal Revenue Code of 1986, as amended

to the date hereof, final, temporary and proposed Treasury Department regulations promulgated, and administrative

and judicial interpretations thereof, changes to any of which subsequent to the date hereof, possibly with retroactive

effect, may affect the tax consequences described herein. In addition, there can be no assurance that the IRS will not

challenge one or more of the tax consequences described herein, and we have not obtained, nor do we intend to

obtain, a ruling from the IRS or an opinion of counsel with respect to the US federal income tax consequences of

acquiring or holding shares. Prospective purchasers of ordinary shares are advised to consult their tax advisers with

respect to their particular circumstances and with respect to the effects of US federal, state, local or non-US tax laws

to which they may be subject.

As used herein, the term ‘United States Holder’ means a beneficial owner of ordinary shares for US federal income tax

purposes whose holding of such ordinary shares does not form part of the business property or assets of a

permanent establishment or fixed base in the Netherlands, who is fully entitled to the benefits of the treaty in respect

of such ordinary shares; and is:

•An individual citizen or tax resident of the US; or

•A corporation or other entity treated as a corporation for US federal income tax purposes created or organized in

or under the laws of the US or of any political subdivision thereof; or

•An estate of which the income is subject to US federal income taxation regardless of its source; or

•A trust whose administration is subject to the primary supervision of a court within the US and which has one or

more US persons who have the authority to control all of its substantial decisions.

If an entity treated as a partnership for US federal income tax purposes owns ordinary shares, the US federal income

tax treatment of a partner in such partnership will generally depend upon the status and tax residency of the partner

and the activities of the partnership. A partnership that owns ordinary shares and the partners in such partnership

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Financial statements	Notes	Appendices	Definitions
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Appendix – Dutch and US taxation (continued)

should consult their tax advisers about the US federal income tax consequences of holding and disposing of the

ordinary shares.

Passive foreign investment company considerations

We believe we were not a passive foreign investment company for US federal income tax purposes in 2025 and that

we will not be a passive foreign investment company in 2026. However, as passive foreign investment company

status is a factual matter that must be determined annually at the close of each taxable year, there can be no certainty

as to our actual passive foreign investment company status in any particular year until the close of the taxable year in

question. We have not conducted a detailed study at this time to confirm our non-passive foreign investment

company status. If we were treated as a passive foreign investment company in any year during which a United

States Holder owned common shares, certain adverse tax consequences could apply. Investors should consult their

tax advisers with respect to any passive foreign investment company considerations.

Taxation of dividends

United States Holders should generally include, in gross income, as foreign-source dividend income the gross amount

of any non-liquidating distribution (before reduction for Dutch withholding taxes) we make out of our current or

accumulated earnings and profits (as determined for US federal income tax purposes) when the distribution is actually

or constructively received by the United States Holder. Distributions will not be eligible for the dividends-received

deduction generally allowed to US corporations in respect of dividends received from other US corporations. The

amount of the dividend distribution included in income of a United States Holder should be the US dollar value of the

foreign currency (e.g. euros) paid, determined by the spot rate of exchange on the date of the distribution, regardless

of whether the payment is in fact converted into US dollars. Although the company does not actively compute its

earnings and profits under US tax principles, distributions are expected to constitute taxable dividends to corporate

earnings and profits.

Subject to limitations provided in the US Internal Revenue Code, a United States Holder may generally deduct from its

US federal taxable income, or credit against its US federal income tax liability, the amount of qualified Dutch

withholding taxes. The rules governing the foreign tax credit are complex and we suggest that each United States

Holder consult his or her own tax adviser to determine whether, and to what extent, a foreign tax credit will

be available.

Dividends received by a United States Holder will generally be taxed at ordinary income tax rates. However, US

individuals and trusts may be eligible to apply a 20.0% US federal income tax rate for certain dividends, so long as

certain exclusions do not apply and the stock has been held for at least 60 days during the 121-day period beginning

60 days before the ex-dividend date. Dividends received from ‘qualified foreign corporations’ generally qualify for the

reduced rate. A non-US corporation (other than a passive foreign investment company or surrogate foreign

corporation) generally will be considered to be a qualified foreign corporation if: (i) the shares of the non-US

corporation are readily tradable on an established securities market in the US or (ii) the non-US corporation is eligible

for the benefits of a comprehensive income tax treaty with the US that has been identified as a qualifying treaty and

contains an exchange of information program. In addition, subject to income limitations, dividends received by US

individuals and US residents, estates and trusts will be subject to a Net Investment Income Tax (NIIT) assessed at the

rate of 3.8%. Individual United States Holders should consult their tax advisers regarding the impact of this provision

on their particular situations.

Dividends paid by us generally will constitute ‘portfolio income’ for the purposes of the limitations on the use of

passive activity losses (and, therefore, generally may not be offset by passive activity losses) and as ‘investment

income’ for the purposes of the limitation on the deduction of investment interest expense.

Taxation on sale or other disposition of ordinary shares

Upon a sale or other disposition of ordinary shares, a United States Holder will generally recognize capital gain or loss

for US federal income tax purposes in an amount equal to the difference between the amount realized, if paid in US

dollars, or the US dollar value of the amount realized (determined at the spot rate on the settlement date of the sale) if

proceeds are paid in currency other than the US dollar, as the case may be, and the United States Holder’s US tax

basis (determined in US dollars) in such ordinary shares. Generally, the capital gain or loss will be long-term capital

gain or loss if the holding period of the United States Holder in the ordinary shares exceeds one year at the time of the

sale or other disposition. The deductibility of capital losses is subject to limitations for US federal income tax

purposes. Gain or loss from the sale or other disposition of ordinary shares generally will be treated as US source

income or loss for US foreign tax credit purposes, unless a United States Holder applies a relevant resourcing rule.

Generally, any gain or loss resulting from currency fluctuations during the period between the date of the sale of the

ordinary shares and the date the sale proceeds are converted into US dollars will be treated as ordinary income or

loss from sources within the US. Each United States Holder should consult his or her tax adviser with regard to the

translation rules applicable when computing its adjusted US tax basis and the amount realized upon a sale or other

disposition of its ordinary shares if purchased in, or sold or disposed of for, a currency other than the US dollar.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	333
Financial statements	Notes	Appendices	Definitions
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Appendix – Dutch and US taxation (continued)

Information reporting and backup withholding

Information returns may be filed with the IRS in connection with payments on the ordinary shares or proceeds from a

sale, redemption or other disposition of the ordinary shares. A ‘backup withholding’ tax of 24% may be applied to,

and withheld from, these payments if the beneficial owner fails to provide a correct taxpayer identification number to

the paying agent and to comply with certain certification procedures or otherwise establish an exemption from

backup withholding. Any amounts withheld under the backup withholding rules might be refunded (or credited against

the beneficial owner’s US federal income tax liability, if any) depending on the facts and provided that the required

information is furnished to the IRS.

The discussion set out above is included for general information only and may not be applicable depending upon a

holder’s particular situation. Holders should consult their tax advisers with respect to the tax consequences to them

of the purchase, ownership and disposition of shares including the tax consequences under state, local and other tax

laws and the possible effects of changes in US federal and other tax laws.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2025	334
Financial statements	Notes	Appendices	Definitions
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Appendix – Financing policy

Financing policy

We continue to hold on to our long-held prudent financing policy, which is based on three foundational elements:

•Liquidity: Maintain sufficient liquidity to ensure continued business growth and to provide a buffer for cash flow

volatility

•Capital structure: Maintain a capital structure that targets a solid investment-grade credit rating

•Cash return: Provide a sustainable dividend per share that will grow over time, paid quarterly, while returning

excess cash to shareholders through share buybacks or capital repayment

Liquidity

Our principal sources of liquidity consist of cash and cash equivalents, short-term investments and available credit

facilities. In addition, we may from time to time raise additional funding in debt and equity markets. We seek to ensure

that our principal sources of liquidity will be sufficient to satisfy our liquidity requirements at all times.

Our liquidity needs are affected by many factors, some of which are based on the normal ongoing operations of the

business, and some of which relate to uncertainties of the global economy and the semiconductor industry. Although

our cash requirements fluctuate based on the timing and extent of these factors, we believe that cash generated from

operations, together with our other sources of liquidity, are sufficient to satisfy our requirements, including our

expected capital expenditures, R&D expenses and debt servicing.

We invest our cash and cash equivalents and short-term investments in short-term deposits with financial institutions,

governments and government-related bodies that have investment-grade credit ratings and in money market and

other investment funds that invest in high-rated short- and medium-term debt securities. Our investments are mainly

denominated in euros and to some extent in US dollars, Taiwanese dollars, Korean won and Chinese yuan.

Year ended December 31 (€, in millions)	2024	2025
Deposits with financial institutions, governments and government-related bodies	4,850.4	5,558.5
Investments in money market funds	6,379.2	6,222.2
Bank accounts	1,506.3	1,135.3
Cash and cash equivalents	12,735.9	12,916.0
Deposits with financial institutions, governments and government-related bodies	5.4	405.9
Short-term investments	5.4	405.9

We maintain an available committed credit facility of €1.5 billion (2024: €1.5 billion) with a group of banks, under

which no amounts were outstanding at the end of 2025 and 2024. This facility has a maturity date of May 2030 with

one uncommitted one year extension option extending the maturity to 2031.

Capital structure