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, 2024

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

2650 W Geronimo Place, Chandler, AZ 85224, USA

(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 Symbol              Name of each exchange on which registered

Ordinary Shares  ASML 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.

393,283,720 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 2024	3
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---
Our technology drives faster, more powerful and energy-<br><br>efficient microchips that help society tackle important<br><br>challenges.<br><br>This continuous innovation can only be achieved through the<br><br>strong partnerships we build with our various stakeholders,<br><br>working together to create solutions for a more sustainable<br><br>future for everyone.
---	---	---	---	---
Powering technology forward
				with local<br><br>communities
with customers	with our people	with suppliers	with partners
See page 13 >	See page 14 >	See page 15 >	See page 16 >	See page 17 >
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	4
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Contents

	Powering<br><br>technology<br><br>forward
13		with customers
14		with our people
15		with suppliers
16		with partners
17		with local communities
	View our Highlights online >
	Our 2024 online report highlights key information<br><br>from this pdf with additional links to relevant<br><br>information on our corporate website.			1. Strategic report
---	---	---	---
5	Forward-looking statements	41	Our business strategy
6	At a glance	43	Our business model
8	In conversation with our CEO	46	Engaged stakeholders
			Performance and risk
		53	Message from our CFO
	Our business
19	Our holistic approach to lithography
22	Our products and services	56	Financial performance
29	Supporting our customers	63	Risk
30	Driving innovation	79	Corporate conduct
35	Our marketplace				2. Corporate governance
---	---	---	---
97	Corporate governance	122	Meetings and attendance
99	Board of Management	127	Supervisory Board committees
101	Supervisory Board	139	Financial statements and profit<br><br>allocation
104	Other Board-related matters
108	AGM and share capital		Remuneration report
112	Financial reporting and audit	140	Message from the Chair of the<br><br>Remuneration Committee
114	Compliance with corporate<br><br>governance requirements
		142	Remuneration at a glance
	Supervisory Board report	144	Remuneration Committee
115	An interview with our Chair of<br><br>the Supervisory Board	147	Board of Management remuneration
		163	Supervisory Board remuneration
118	Supervisory Board focus in 2024	166	Other information		3. Sustainability statements
---	---	---	---
168	Limited assurance report of the<br><br>independent auditor on the<br><br>Sustainability statements	194	Environmental
		195	Energy efficiency and climate action
	General disclosures	235	Circular economy
171	Basis for preparation	250	EU Taxonomy
173	ESG sustainability governance	259	Social
176	ESG sustainability at a glance	260	Attractive workplace for all
177	Our value chain overview	288	Responsible value chain
178	Impact, risk and opportunity<br><br>management	297	Innovation ecosystem
		306	Valued partner in our communities
185	Contributing to the UN's SDGs	321	Governance
186	Metrics	322	ESG integrated governance
187	Reference table				4. Financial statements
---	---	---	---
	Consolidated financial statements	339	Consolidated statements of<br><br>cash flows
332	Report of independent registered<br><br>public accounting firm
		340	Notes to the Consolidated<br><br>financial statements
334	Consolidated statements of operations
335	Consolidated statements of<br><br>comprehensive income	383	Other appendices
		403	Definitions
336	Consolidated balance sheets	411	Exhibit index
337	Consolidated statements of<br><br>shareholders’ equity				A definition or explanation of abbreviations, technical<br><br>terms and other terms used throughout this Annual Report<br><br>can be found in the Definitions section. In some cases,<br><br>numbers 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, Corporate governance,<br><br>Supervisory Board report and Sustainability statements<br><br>(except for the Limited assurance report of the<br><br>independent auditor on the Sustainability statements)<br><br>together form the Management Report.	In this report the name ‘ASML’ is sometimes used<br><br>for convenience in contexts where reference is<br><br>made to ASML Holding NV and/or any of its<br><br>subsidiaries, as the context may require.<br><br>References to our website and/or video<br><br>presentations in this Annual Report are for reference<br><br>only and none nor any portion thereof are incorporated<br><br>by reference in this report.<br><br>© 2024, ASML Holding NV. All Rights Reserved.
---	---

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	5
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Special note regarding forward-looking statements

General

This Annual Report 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”,

“project”, “believe”, “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, and outlook,

expected financial results, including

expected results for Q1 and full year 2025,

including expectations with respect to

revenue, gross margin, estimated annualized

effective tax rate, sales by market segment

and net service and field option sales and

expected drivers thereof, and other full year

2025 expectations and outlook,

expectations with respect to expected

revenue 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 and

potential for 2025 and 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 growth in the

semiconductor industry and ecosystem and

expectations of worldwide semiconductor

sales by 2030, expected GDP growth,

business environment trends, including

expected demand, utilization, inventory

levels, expected recovery in the

semiconductor industry and expected timing

thereof, expected growth in global wafer

capacity, expectations about the emergence

of AI and its expected impact on the

semiconductor market and expected trends

in AI, electrification and the energy

transition, expected growth in

semiconductor end markets and market

opportunity for 2025 and 2030 and outlook

CAGR from 2025 to 2030 and key drivers

and global trends expected to fuel

semiconductor growth in the longer term,

statements made in the section entitled

“Macroeconomic and geopolitical trends”,

plans to increase global semiconductor

capacity and expected growth in

semiconductor ecosystem, Moore’s Law

and continuation of shrink, including the

expectation of lithography remaining one of

the key drivers of Moore’s law, expected

trends in customer demand, export control

policy and regulations and expected impact

on us, our plans to increase capacity, and

expected or planned production capacity,

expectations with respect to systems being

operational in customer factories,

expectations about the use of our tools by

customers including expected timing of

high-volume production of systems, such as

Twinscan EXE, product roadmaps and

customer roadmaps, our expectation that

lithography will continue to be at the heart of

customer innovation, expected productivity

and other attributes and benefits of our

tools, our environmental, social, and

governance (ESG) and sustainability

strategy, plans, commitments and targets,

including emissions and waste reduction

aims, commitments and targets and our aim

for SBTi approval of certain of our 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

share buyback program and our proposed

dividend for 2025 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 to “greenhouse gas neutral”

means remaining emissions, after ASML’s

efforts to reach its GHG emission reduction

targets, are compensated by the same

amount of metric tons of carbon credits that

are verified against recognized quality

standards.

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” in this Annual Report.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	6
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

We are a global innovator

	Why we exist – our purpose		What we try to achieve – our vision		What we uniquely do – our mission
As one of the leading innovators<br><br>in the semiconductor industry,<br><br>ASML has been helping<br><br>chipmakers push technology to<br><br>new limits and solve some of<br><br>society’s toughest challenges<br><br>since 1984. Together, our<br><br>hardware, software and<br><br>services provide a holistic<br><br>lithography approach to mass-<br><br>producing the patterns of<br><br>microchips.<br><br>We design and integrate<br><br>lithography systems with<br><br>computational tools, metrology<br><br>and inspection systems, and<br><br>process control software<br><br>solutions – helping chipmakers<br><br>achieve their highest yields and<br><br>best performance.
	Unlocking the potential of people<br><br>and society by pushing<br><br>technology to new limits.		We enable groundbreaking<br><br>technology to solve some of<br><br>humanity’s toughest challenges.		Together with our partners, we<br><br>provide leading patterning<br><br>solutions that drive the<br><br>advancement of microchips.
	We live by our values to drive success
	We challenge	We collaborate		We care
	By questioning the status quo and<br><br>pushing boundaries, keeping<br><br>technology moving forward.	By tapping into the collective potential<br><br>of our ecosystem of customers,<br><br>suppliers, partners and stakeholders,<br><br>creating better solutions.		By acting with integrity and respect,<br><br>and providing a safe, inclusive and<br><br>trusting environment where our people<br><br>can learn and grow.
Page 167 >

Read more about how we embed ESG

sustainability across our business.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	7
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Key facts and figures 2024

Rounding differences may occur.

€28.3bn
Total net sales
€22.4bn Asia<br><br>€4.5bn US<br><br>€1.3bn EMEA
Read more on page 56 >

Page 167>

583
Net system<br><br>sales (in units)
Read more on page 341 >		5,150
---
Total suppliers
1,600 in the Netherlands<br><br>750 in EMEA (excl. NL)<br><br>1,400 in North America<br><br>1,400 in Asia
Read more on page 288 >		€4.3bn
---
R&D costs
We innovate across our entire<br><br>product portfolio through strong<br><br>investment in R&D
Read more on page 297 >		44,027
---
Total employees (FTEs)
25,848  EMEA<br><br>9,699  Asia<br><br>8,480 US
Read more on page 259 >
€3.0bn
Returned to shareholders
Read more on page 337 >		32.8 kt
---
Scope 1 and 2<br><br>CO2e emissions
Read more on page 195 >		12.0 Mt
---
Scope 3 CO2e emissions
Read more on page 195 >		88%
---
Reuse rate of parts returned<br><br>from field and factory
Read more on page 235 >		51.3%
---
Gross margin
Read more on page 56 >		60+
---
Locations
3
Continents
148
Nationalities		21%
---
Women in entire workforce<br><br>(headcount)
Read more on page 259 >		86%
---
Customer satisfaction<br><br>survey score
Read more on page 29 and page 47 >		€1,084
---
Amount invested per<br><br>employee, including<br><br>employee giving
Read more on page 306 >

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	8
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

In conversation

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

Christophe Fouquet

We are<br><br>committed<br><br>to powering<br><br>people and<br><br>technology<br><br>forward<br><br>with you.”
Christophe Fouquet
President, Chief Executive Officer and Chair of the<br><br>Board of Management		At the 2024 AGM, Christophe Fouquet was appointed President, Chief<br><br>Executive Officer and Chair of the Board of Management of ASML,<br><br>succeeding Peter Wennink and Martin van den Brink. In this Q&A<br><br>session, Christophe outlines the key achievements of the last 12<br><br>months, his priorities as the company continues to grow rapidly, and his<br><br>expectations for the years ahead.
---	---	---	---
Q	Looking back at the year, what<br><br>were the standout moments?		In 2024, we celebrated the 40th anniversary<br><br>of ASML, and while this was a moment for<br><br>us to come together to reflect on the past, it<br><br>was also an opportunity to look ahead.<br><br>ASML was once a small, obscure company<br><br>that nobody had heard of, but its role in our<br><br>industry and in society has changed<br><br>dramatically over the last four decades.<br><br>Driven by our strong relationships with our<br><br>customers, who are always our top priority,<br><br>we have grown to become an undeniably<br><br>important global company – but of course,<br><br>ASML cannot and will not stand still. There<br><br>is always more that can and must be done.<br><br>As we expected, 2024 was a year of<br><br>transition – not only in terms of the<br><br>leadership team, but also from a market<br><br>point of view. The business again performed<br><br>very well, as we explain in detail elsewhere<br><br>in this report, growing sales to €28.3 billion,<br><br>up by 2.6% over 2023. Our gross margin<br><br>was 51.3%, similar to last year and we paid<br><br>dividends totaling €2.5 billion, while our<br><br>backlog stands at around a healthy €36<br><br>billion.
There were many! This was a period when<br><br>we installed the industry’s first High NA<br><br>extreme ultraviolet (EUV) lithography<br><br>system, achieved financial performance in<br><br>line with expectations, delivered on our<br><br>environmental, social and governance (ESG)<br><br>commitments and continued to lay down<br><br>plans that will ensure that ASML maintains<br><br>and extends its standing as one of the<br><br>world’s great technology companies.<br><br>As many stakeholders have told me, the<br><br>transition from Peter and Martin to me was<br><br>as smooth as a Formula One pit stop, and<br><br>I thank them both for their support. Great<br><br>credit is due for their astonishing legacy of<br><br>innovation which is helping the world rise to<br><br>its biggest challenges, from climate change<br><br>and the energy transition to unleashing the<br><br>full benefits of artificial intelligence (AI).
		Celebrating the 40th<br><br>anniversary of ASML

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	9
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

In conversation (continued)

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

Christophe Fouquet

Q	What were the major<br><br>innovations that helped ASML<br><br>push technology forward?
Innovation is the heartbeat of our company,<br><br>and in 2024 it was very pleasing to finalize<br><br>the first installation of our High NA EUV<br><br>system (TWINSCAN EXE:5000) at one of<br><br>our major customers. Ten years in the<br><br>making, High NA EUV (EUV 0.55 NA) has<br><br>been a huge investment for ASML and<br><br>demanded seamless collaboration with<br><br>partners and customers who have invested<br><br>in the next generation of tools. We are very<br><br>happy that High NA EUV is now operational<br><br>and playing its part in moving Moore’s Law<br><br>forward.
We’ll continue to<br><br>enable many of<br><br>the solutions<br><br>that are<br><br>transforming<br><br>our planet.”
Christophe Fouquet
President, Chief Executive Officer and Chair of the<br><br>Board of Management			However, serving customers well requires<br><br>more than just the latest and greatest<br><br>products – it also means focusing on all the<br><br>other essential yet less newsworthy<br><br>innovations that are so important to our<br><br>customers. It gave us real satisfaction to ship<br><br>the first TWINSCAN NXE:3800E, increasing<br><br>productivity by more than 35% as compared<br><br>to its predecessor, the TWINSCAN<br><br>NXE:3600D, and also to take a major step in<br><br>deep ultraviolet (DUV) with the shipment of<br><br>the first TWINSCAN NXT:870B, which delivers<br><br>major progress on productivity, overlay and<br><br>cost per exposure compared to its<br><br>predecessor, the TWINSCAN NXT:870.<br><br>There are many other examples of how our<br><br>innovations are continuing to deliver<br><br>demonstrable improvements for our<br><br>customers – in areas from immersion<br><br>lithography systems to metrology, control<br><br>solutions and multibeam technology.
---	---
Q	Where do you see future<br><br>growth coming from?
As we shared at the 2024 Investor Day,<br><br>during the last 12 months AI has come to<br><br>life and proved itself to be a major force.<br><br>It is going to drive new applications and<br><br>growth in the next five to ten years – there’s<br><br>no doubt about this, and a lot of our peers<br><br>in the industry have also expressed<br><br>similarly bullish views about the opportunity<br><br>ahead. Today, its impact is mainly evident<br><br>in the sales of very advanced servers<br><br>and high-power computing. But we expect<br><br>that there is a lot more to come – we<br><br>don’t know exactly in what form, or<br><br>when and how, but it will for sure be<br><br>a very important factor for our industry,<br><br>with transformational and positive<br><br>consequences for ASML and for society.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	10
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

In conversation (continued)

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

Christophe Fouquet

The more diverse the people<br><br>we welcome to ASML, the more<br><br>opportunities we have to enrich<br><br>what we do every day.”
Christophe Fouquet
President, Chief Executive Officer and Chair of the Board of Management		If I look at the future growth of ASML, then of<br><br>course lithography remains one of the key<br><br>drivers of Moore’s Law, and we believe this<br><br>will continue to be true for many, many years.<br><br>At the same time, as we realized several<br><br>years ago, 2D shrink is becoming more and<br><br>more difficult. This is not necessarily because<br><br>of limitations in lithography, but because we<br><br>have almost reached the limitations of the<br><br>transistors that our Logic and Memory<br><br>customers are using. In order to continue to<br><br>make progress on 2D shrink, we need<br><br>architecture and device innovation. That<br><br>means 3D front-end integration, which will in<br><br>turn present a growth opportunity for us –<br><br>because 3D integration depends on bonding<br><br>and this requires holistic lithography. I think<br><br>that 3D integration is set to be an increasingly<br><br>important complementary technology, or set<br><br>of technologies, to 2D shrink.
---	---
Q	Stakeholders are integral to<br><br>ASML’s success. How do you<br><br>engage and collaborate with<br><br>them?
Our stakeholder relationships – with<br><br>customers, employees, suppliers,<br><br>shareholders and society – are incredibly<br><br>important to us and we work hard to create<br><br>and maintain strong relationships with them.<br><br>Trust is an essential part of partnership, and<br><br>while we’ve successfully focused on<br><br>building trust with our customers, we are<br><br>now striving to extend that notion to all of<br><br>our stakeholders. That means sharing our<br><br>future vision, being transparent about what<br><br>comes next and how a particular<br><br>stakeholder can play a role.			Regular customer engagement helps us to<br><br>understand our customers’ needs and can<br><br>shape our technology development to meet<br><br>them – fostering collaboration that not only<br><br>enhances customer satisfaction but also<br><br>supports our market position. We could not<br><br>meet customer needs without the support<br><br>of our suppliers, who provide essential<br><br>components and materials, and help us<br><br>maintain the high quality and reliability of<br><br>our products. Strong partnerships with<br><br>suppliers also promote innovation, enabling<br><br>us to develop cutting-edge solutions<br><br>together. Ultimately, the success of our<br><br>customers and the strength of our supply<br><br>chain are intertwined, making both groups<br><br>absolutely central to our business strategy.
---		Engagement with broader society, including<br><br>local communities and governments in the<br><br>regions around the world we operate in, is<br><br>equally important. For example, we are<br><br>engaging and investing proactively in the<br><br>region around our Veldhoven headquarters,<br><br>working hand in hand with the community.<br><br>In fact, there has been a significant<br><br>discussion this year about strengthening the<br><br>industry in the Brainport Eindhoven region<br><br>and the Netherlands, through partnerships<br><br>and funding from authorities and industry<br><br>that are designed to create societal<br><br>solutions and fuel future economic growth in<br><br>a responsible way. By collaborating with the<br><br>Brainport Eindhoven community, we can<br><br>build a future that works for ASML as well<br><br>as for the broader society.<br><br>We also want to partner with the government<br><br>in order to address some of the complex<br><br>geopolitical questions that we face. As a global<br><br>company that is also a Dutch and European<br><br>champion, we need to work alongside our<br><br>government to help us move forward, to<br><br>ensure our interests are represented and to<br><br>shape an outcome that is good for Europe,<br><br>for the Netherlands and for ASML.
---
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	11
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

In conversation (continued)

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

Christophe Fouquet

Q	Sustainability is an important<br><br>topic for all stakeholders. How<br><br>is ASML performing?
The technology sector can fundamentally<br><br>support other industries and society to<br><br>achieve critical ESG targets. For example,<br><br>the industry will require major innovation to<br><br>reduce cost and energy consumption<br><br>related to AI – this will drive collaborative<br><br>advancements that benefit the entire<br><br>ecosystem. We have the chance to<br><br>contribute in ways beyond what we do here<br><br>at ASML. Some of these ways are<br><br>showcased in case studies throughout this<br><br>report, and they are a real source of pride<br><br>and motivation for a lot of our people.<br><br>I’m pleased with the progress we have<br><br>made on scope 1, 2 and 3 emissions. I<br><br>believe our environmental programs are<br><br>strong and meaningful, and put us and our<br><br>industry well ahead of many other<br><br>industries. For the first time, we shipped a<br><br>DUV system and a metrology system via<br><br>sea instead of air in 2024. This is a relatively<br><br>minor example of how we’re addressing<br><br>ESG, but it shows how wide we cast the net<br><br>when looking for ways to make a difference.<br><br>For us, ESG has never been a fad or a<br><br>fleeting fashion. It is simply the right thing to<br><br>do – not only for ASML, but for everybody<br><br>else too. As you can see from the extensive<br><br>Sustainability statements section in this<br><br>Annual Report, the ASML team has done a<br><br>tremendous job preparing for the newly<br><br>announced ESRS (European Sustainability<br><br>Reporting Standards) reporting<br><br>requirements. We are reporting as of this<br><br>year in accordance with those ESRS<br><br>requirements – an extraordinary<br><br>achievement.			The technology sector can<br><br>fundamentally support other<br><br>industries and society to achieve<br><br>critical ESG targets.”
---
Christophe Fouquet
President, Chief Executive Officer and Chair of the Board of Management

Q

What are your top priorities<br><br>for 2025 and beyond?

A key priority is to continue to align with<br><br>our customers’ roadmaps. Our customers<br><br>face a lot of difficult choices in the next few<br><br>years – and they have to make sure that the<br><br>technology they choose can deliver the<br><br>outcomes they need. We’re aware that the<br><br>move to the next technology in our<br><br>lithography systems could potentially come<br><br>with very high costs for our customers.<br><br>Our task – and our opportunity – is to<br><br>understand how we can help them, and to<br><br>develop products and services that will<br><br>enable them to achieve their quality goals<br><br>at the lowest possible risk and the lowest<br><br>possible cost. For me this is crucial, and it<br><br>is a key priority on the technology side.<br><br>As always, we focus on our people, and<br><br>specifically on how we can help them to<br><br>take ASML to new levels. In recent months,<br><br>I’ve stressed the importance of everybody<br><br>at ASML taking ownership of what they do.<br><br>I’ve also explained that to enable people to<br><br>own their actions, we need greater<br><br>simplification.

These two threads have become a crusade<br><br>that will be increasingly evident in the<br><br>months ahead. The combination of<br><br>ownership and simplification is a powerful<br><br>engine that will help our people innovate<br><br>better and more.<br><br>Another important mission is to make sure<br><br>that everybody feels that ASML is a place<br><br>where they can realize their full potential.<br><br>This has been a challenge in the last few<br><br>years due to our rapid growth and the huge<br><br>increases in headcount. But now we’re<br><br>redoubling our efforts – we’re committed to<br><br>making sure that ASML is somewhere that<br><br>talented people have space to be creative,<br><br>where they can collaborate with highly<br><br>skilled colleagues and take us to the next<br><br>level of innovation.
Q	How can the ASML culture<br><br>support you in achieving those<br><br>aims?
Without doubt, it has a major role to play.<br><br>A lot has changed over the last 40 years.<br><br>The industry has moved on, customer<br><br>expectations have ramped up, and the<br><br>opportunities for technology have<br><br>exploded. And while our culture and<br><br>diverse workforce has been instrumental in<br><br>getting us to where we are today, we need<br><br>to constantly raise the bar and make sure it<br><br>is totally aligned with the task ahead.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	12
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

In conversation (continued)

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

Christophe Fouquet

So our aim is not just to maintain this culture

Over the next few pages<br><br>we share how we’re<br><br>powering technology
forward.

– we want to enrich it. By that I mean we

have to be a lot better in every aspect of

what we do, with the emphasis on flexibility,

time to market, cost, quality, ownership and

simplification. While it is the job of ASML’s

leadership to create and support this new

enriched culture, it is also the responsibility

of every single employee in the company.

This must be an evolution, not a revolution,

and it goes back to one of our core values:

challenge. We need to challenge our own

culture, retaining the best elements while

adding in new ones in order to be an even

better company. This becomes even more

important as our headcount grows and new

employees join ASML.

Diversity will continue to have a big part to

play because it enables us to look at things

from a range of different perspectives. This

is something we’ve done with great success

for many years.

The challenge is that sometimes inclusion

does not come as naturally as diversity. Put

simply, we need to do more to make

everybody – regardless of background or

culture – feel at home and welcome. ASML

is a place that can turn any difference into

an asset.

Q

Looking at the big picture, the long-term outlook for our industry is very strong despite the continuing geopolitical tensions, with semiconductors playing a major role as mission-critical enablers of multiple megatrends in society. Although the rest of the market is recovering more slowly than anticipated, the emergence of AI is a significant opportunity. We expect that global semiconductor sales will grow by 9% compound annual growth rate over the period 2025 to 2030 and passing the 1 trillion mark in 2030. The industry will require major innovations to address the need to improve cost and energy consumption on AI, and this will require further boosting the industry roadmap.

All values are in US Dollars.

As always, the period ahead will see our

customers remaining at the center of ASML

strategy – and we believe that lithography

will continue to be at the heart of their

innovation processes. Even for advanced

chip manufacturing processes, lithography is

still the best way to drive down costs and

energy consumption.

ESG will also remain a key factor in

everything we do. In recent years, we have

worked very hard with our partners to make

sure that our industry as a whole can lead

the way on ESG. We have already taken

huge strides, and we are committed to

collaborating with our customers and our

suppliers in order to make sure that we

achieve the commitments we have made.

I would like to end by paying tribute to the

skills and commitment of our people.

Everything we have discussed here – all the

innovation, growth and other achievements –

is only possible because of our team. All our

stakeholders recognize that our employees

are our greatest strength. When we decide

to do something, we get it done – and I want

to thank everybody at ASML for getting it

done, time and time again, not just over the

past 12 months, but throughout the last 40

years. Together, we can look forward to

achieving even more in 2025.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	13
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Powering technology forward...

customers

with

We’ve transformed our business to get closer to our<br><br>customers – increasing their voice throughout the<br><br>business, creating a cross-functional team empowered<br><br>to make decisions quickly in the field, and improving<br><br>the performance of our installed base. Read more about<br><br>what we hope to achieve – and how we’re balancing<br><br>innovation with delivering quality – in this Q&A with Jim<br><br>Koonmen, Executive Vice President and Chief<br><br>Customer Officer at ASML.

Read now

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	14
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Powering technology forward...

with
	With the semiconductor industry projected to grow to 1 trillion in sales by 2030, ASML will need to grow to meet customer and market demand – and our new people strategy sets out how we’ll do that. Read more about how we’re setting ourselves up for future success – without losing the essence of what made us the company we are today – in this Q&A with Cristina Monteiro, Head of Human Resources & Organization at ASML.

All values are in US Dollars.

our people

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	15
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Powering technology forward...

Our systems comprise thousands of parts, most of which come from<br><br>our suppliers – they are an essential part of our innovation ecosystem.<br><br>Read more about how we’re better aligning with our suppliers –<br><br>ensuring they can keep pace with our growth trajectory, while<br><br>supporting their own – in this Q&A with Wayne Allan, Executive Vice<br><br>President and Chief Strategic Sourcing & Procurement Officer at ASML.

Read now

suppliers

with

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	16
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Powering technology forward...

partners

with

In 2024, imec, a world-leading research and innovation hub in nanoelectronics and<br><br>digital technologies, and ASML opened the High NA EUV Lithography Lab in Veldhoven,<br><br>the Netherlands, which is jointly run by ASML and imec. It marks a milestone in<br><br>preparing High NA EUV lithography for accelerated adoption in mass manufacturing.
	Read now

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	17
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Powering technology forward...

local

communities

with

We value the support and contribution of the communities we’re part<br><br>of, and we feel a responsibility and a desire to give back to them. True<br><br>to our mantra – Small acts. Big impact. Thrive together – ASML<br><br>employees worldwide are playing a vital role in making an impact.<br><br>Watch how we’re providing technical training for people with refugee<br><br>backgrounds in the Netherlands, supporting food banks in Taiwan,<br><br>and mentoring young people in the US.

Watch now

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	18
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our business

19	Our holistic approach to lithography
22	Our products and services
29	Supporting our customers
30	Driving innovation
35	Our marketplace
41	Our business strategy
43	Our business model
46	Engaged stakeholders

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	19
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our holistic approach to lithography

Lithography technology – using

What is edge placement error (EPE)?

Creating a microchip involves the<br><br>patterning of tiny features in precise<br><br>locations. EPE is the difference between<br><br>the intended and the printed features of<br><br>the layout of a microchip. Take, for<br><br>example, a line with right and left edges –<br><br>on a microchip, this line and its edges<br><br>must be precise and placed in exact<br><br>locations. Any deviation, no matter how<br><br>slight, can result in misalignment, or an<br><br>EPE. If one or more EPE issues crop up in<br><br>the microchip production flow, the device<br><br>is subject to shorts, which could cause<br><br>the entire chip to fail.

light to print tiny patterns on

silicon – is fundamental to the

mass production of microchips.

Our holistic approach is based

on integrating our lithography

systems with a set of products

that optimize production of

microchips and enable

affordable shrink.

The semiconductor industry is driven by

affordable shrink – the ability to make

smaller, more energy-efficient transistors at

the right cost. Reducing their size means

more transistors can be packed into a given

area of a microchip, increasing functionality

and improving performance.

Microchips are made by building up

complex, interconnected patterns of

transistors, layer by layer, on a silicon wafer

– a process ASML’s lithography systems are

central to. A lithography (more formally

known as ‘photolithography’) system is

essentially a projection system, with light

projected through a blueprint of the pattern

that will be printed (known as a ‘mask’ or

‘reticle’). With the pattern encoded in the

light, the system’s optics shrink and focus

the pattern onto a photosensitive silicon

wafer. After the pattern is printed, the

system moves the wafer slightly and prints

another copy.

Lithography is a key driver for shrink.

It determines the smallest feature sizes that

can be printed on a chip, and therefore the

number of transistors and the performance.

To achieve shrink, lithography has to use

shorter wavelengths of light and larger

numerical apertures, as well as other

advanced techniques such as immersion

lithography – which allows chipmakers to

print even smaller features with the same

wavelength of light by projecting the light

through a layer of water between the lens

and the wafer – and multiple patterning.

As patterning gets smaller, our lithography

systems become increasingly complex. And,

as chipmakers print ever-smaller patterns,

they 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.

To help our customers understand and

correct for potential issues that could cause

variations or errors, we provide them with

support and solutions at every stage of the

chipmaking process, from early design and

development to high-volume production.

We do this by taking a holistic, integrated

approach to lithography that enables

customers to optimize the system setup and

process window for high-volume

manufacturing – helping them achieve their

highest yields and best chip performance.

Our holistic approach helps minimize any

deviation between the intended and printed

features of a microchip layout (so-called

‘edge placement error’ – see box),

optimizing the lithography system’s

performance, stability and yield – including

maximizing the number of good wafers per

day – and enabling ever-smaller chip

features.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	20
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our holistic approach to lithography (continued)

Creating value in our customers’<br><br>fabs
Because lithography is a critical step in the<br><br>chip manufacturing process where the wafer<br><br>is processed die by die – and therefore<br><br>has a greater impact on performance than<br><br>any other – ASML’s technology is pivotal<br><br>in our customers’ semiconductor<br><br>fabrication plants (or ‘fabs’). Our holistic<br><br>approach helps increase lithography<br><br>systems’ availability, reduce overall costs,<br><br>and optimize yield for our customers.
Steps in the microchip manufacturing<br><br>process:
1.Deposition – The first step is typically to deposit<br><br>different materials – such as metals/conductors,<br><br>insulation films and semiconductors – onto a<br><br>silicon wafer.<br><br>2.Photoresist coating – The wafer is then coated<br><br>with a light-sensitive layer called a photoresist.<br><br>3.Lithography – Light is projected onto the wafer<br><br>through a reticle. Optics shrink and focus the<br><br>reticle pattern. This pattern is then printed onto<br><br>the wafer when the resist layer is exposed to light.<br><br>4.Baking, developing and etching – The wafer is<br><br>baked and developed to make the pattern<br><br>permanent, with a pattern of open spaces. Reactive<br><br>gases are used to etch away material from the<br><br>open spaces, leaving a 3D version of the pattern.<br><br>5.Ion implantation – The wafer may be bombarded<br><br>with positive or negative ions to tune the<br><br>semiconductor properties.<br><br>6.Removing photoresist – After the layer is etched or<br><br>ionized, the remainder of the photoresist coating that<br><br>was protecting areas not to be etched is removed.<br><br>The entire microchip manufacturing process – from<br><br>start to tested and packaged device, ready for<br><br>shipment – can take half a year, depending on the<br><br>complexity of the microchip.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	21
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our holistic approach to lithography (continued)

Maximizing the process window
Our holistic approach to lithography<br><br>integrates a set of products – enabling<br><br>chipmakers to develop, optimize and<br><br>control the semiconductor production<br><br>process.
Lithography and all other stages in the microchip<br><br>manufacturing process must be closely aligned for an<br><br>optimal result. Within lithography, the process window<br><br>is the collection of acceptable variations of process<br><br>parameters that allow a microchip to be manufactured<br><br>and to operate under desired specifications.<br><br>By incorporating computational lithography,<br><br>metrology and inspection, ASML’s holistic lithography<br><br>portfolio enables customers to maximize the<br><br>process window – keeping lithography systems<br><br>stable in a high-volume manufacturing setting, which<br><br>leads to a higher yield with more good wafers per<br><br>day. Lithography is the only step in the microchip<br><br>manufacturing process in which in-line adjustments<br><br>can be made to optimize performance.<br><br>It would be impossible for our lithography systems to<br><br>manufacture chips at such increasingly small<br><br>dimensions without the software we develop. Our<br><br>system and process control software products enable<br><br>automated control loops to maintain optimal operation<br><br>of lithography processes and therefore maximize<br><br>yield. As a result, our lithography systems are a<br><br>hybrid of high-tech hardware and advanced software.<br><br>Our development teams work across a range of<br><br>coding practices, providing innovative solutions to the<br><br>intricate problems affecting the chipmaking systems<br><br>at the heart of the semiconductor industry.

Computational lithography is

used to predict and enhance

the process window of

our lithography systems

by calculating the optimal

settings, depending on the

specific application. This takes

place in the research and

development phase, before a

lithography system goes into

high-volume manufacturing.

We have a suite of optical

and e-beam wafer metrology

and inspection products

that control the process

window and help ensure

that the lithography system

operates optimally in the fab

environment.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	22
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services

Our comprehensive product

Extreme ultraviolet (EUV) lithography systems

New for 2024: Our new NXE:3800E system boosts productivity and reduces error
In 2024, we installed the first TWINSCAN<br><br>NXE:3800E systems. This system is the<br><br>successor to the TWINSCAN NXE:3600D<br><br>and includes a higher-power light source, a<br><br>new wafer handler and faster wafer stages.	It increases productivity by more than 35%<br><br>– up to 220 wafers per hour (wph),<br><br>compared to 160 wph using the NXE:3600D<br><br>– while driving consistent overlay accuracy<br><br>across different tools (matched machine<br><br>overlay) down to 0.9 nm, compared to 1.1<br><br>nm with the NXE:3600D.

portfolio is aligned to our

customers’ roadmaps, delivering

lithography solutions in support

of all applications, from advanced

to mainstream nodes.

Using EUV light at a wavelength of 13.5 nm,

our EUV lithography systems make it

possible to print the smallest features on

microchips at the highest density – they are

used for the most intricate, critical layers on

the most advanced microchips. They also

help simplify our customers’ manufacturing

processes, compared to complex multiple-

patterning strategies using deep ultraviolet

(DUV) immersion systems. ASML is currently

the world’s only manufacturer of EUV

lithography systems.

TWINSCAN NXE platform (EUV 0.33 NA)

Our TWINSCAN NXE platform, with a

numerical aperture (NA) of 0.33, was first

introduced to customers in 2013 and is now

widely adopted in high-volume

manufacturing by our major customers.

It extends our customers’ Logic and Memory

roadmaps by delivering improvements in

resolution, productivity and overlay (layer-to-

layer alignment) performance, enabling year-

on-year cost reductions. Our EUV product

roadmap is intended to drive affordable

scaling to 2030 and beyond.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	23
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services (continued)

Extreme ultraviolet (EUV) lithography systems

TWINSCAN EXE platform (EUV 0.55 NA)

High NA EUV, with an NA of 0.55, is an

evolutionary step in EUV technology,

introducing a novel optics design and

significantly faster reticle and wafer stages.

Our new TWINSCAN EXE platform offers

chipmakers a critical dimension (the smallest

feature that can be printed) of 8 nm. When

compared with the TWINSCAN NXE

systems, this means they can print

transistors 1.7 times smaller – and therefore

achieve transistor densities 2.9 times higher.

These enhancements offer considerable

benefits to our customers, enabling

lithography simplification for future nodes,

higher yields and decreased defect density

for both Logic and DRAM. EUV 0.55 NA will

help our customers extend their shrink

roadmap and minimize double or triple

patterning compared with 0.33 NA, leading

to reduced patterning complexity, lower risk

of defects and a shorter cycle time.

In addition, 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. Currently, they have a

common wafer stage and source module.

Our future systems will further extend this

commonality with the ultimate goal of having

a common platform early next decade that

will only differentiate between systems from

an optics point of view.

We expect our TWINSCAN EXE platform to

start supporting high-volume manufacturing

in 2026 and have received purchase orders

from all our major EUV customers for the

delivery of the TWINSCAN EXE:5200B

systems – high-volume EUV production

systems with 0.55 NA and a higher number

of wafers per hour.

New for 2024: High NA EUV success with our TWINSCAN EXE:5000

To prepare High NA EUV (0.55 NA) for

high-volume manufacturing, the first

operational prototype was made available

to chipmakers in the new ASML-imec High

NA EUV Lithography Lab at our Veldhoven

campus (the Netherlands). Two more

TWINSCAN EXE:5000 systems were

assembled and installed at an Intel plant

near Hillsboro, Oregon (US), and a fourth

system was shipped to a customer in Asia.

In April 2024, the High NA EUV system in

Veldhoven printed the first-ever 10 nm

dense lines, with imaging done after

optics, sensors and stages completed

coarse calibration (see image on the right).

This important milestone showed the

system is functioning, though not at full

performance

in a high-volume

manufacturing

environment yet.

The TWINSCAN EXE:5000 EUV system is the

first in a new generation of machines that will

provide 8 nm resolution to support advanced

Logic and Memory chip production. It allows

chipmakers to reduce process complexity in

high-volume manufacturing by using single

instead of multiple patterning. This increases

wafer output in customer fabs by reducing

production cycle time. The technology will

enable multiple future chip architectures,

starting at the 2 nm Logic node and followed

by Memory nodes at a similar transistor density.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	24
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services (continued)

| Deep ultraviolet (DUV) lithography systems | | --- || New in 2024 | | --- |

DUV lithography systems are the

workhorses of the industry, producing the

majority of layers in microchips. Supporting

numerous market segments, we offer

immersion as well as dry lithography

systems, using 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 (NXTi platform)

ArF immersion lithography maintains a thin

layer of water between the lens and the

wafer. Using the refractive index of water to

increase NA improves resolution 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 of the same

chip.

The TWINSCAN NXT:2150i is a dual-stage

DUV immersion lithography system with a

193 nm ArF light source and a numerical

aperture (NA) of 1.35 – the highest in the

semiconductor industry right now. It offers

better overlay and imaging performance at

higher productivity (up to 310 wafers per

hour) compared to the TWINSCAN

NXT:2100, and with less process

complexity.

Dry systems (TWINSCAN NXT and

TWINSCAN XT platform)

Not every layer on a chip has to be

produced by the most innovative immersion

lithography systems. While some more

complicated layers do require more

advanced lithography systems, others can

often be printed using ‘older’ technology

such as dry lithography systems.

With our dry systems product portfolio, we

aim to offer our customers more cost-

effective solutions for all wavelengths.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	25
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services (continued)

| Deep ultraviolet (DUV) lithography systems | | --- || New in 2024 | | --- || Refurbished systems | | --- |

The expected growth of the mainstream

semiconductor market requires an increase

in global lithography capacity – particularly

in 200 mm (or 8-inch) wafer fabs, where

approximately half of all mainstream node

products are manufactured today. To help

meet this need, we shipped our first

TWINSCAN XT:400M – the successor to

the TWINSCAN XT:400L – in April 2024.

This dual-stage i-line dry lithography

system prints 200 mm and 300 mm wafers

with ≤ 20 nm overlay across the entire

wafer, increasing productivity in mature-

technology markets.

The TWINSCAN NXT:870B is our latest KrF

system that not only aims to set new

productivity records – 400 wph compared

to the 330 wph of its predecessor, the

TWINSCAN NXT:870 – but will also feature

a significant improvement in overlay and

cost per exposure.

We continue to innovate in productivity,

cost of ownership and performance across

our TWINSCAN NXT and TWINSCAN XT

product lines (ArF, KrF and i-line) for 200

mm and 300 mm wafer sizes.

Our refurbished products business

refurbishes and upgrades our older

lithography systems to extend their lives,

and offers associated services and support.

We currently offer refurbished PAS 5500 and

first-generation AT, XT and NXT systems.

ASML systems have a very long operational

lifetime that often exceeds their role at the

initial customer – remarkably, 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 ensure used

systems still deliver the quality ASML stands

for, we are actively involved in the used-

system market.

Read more in Sustainability statements –

Environmental – Circular economy

New in 2024: NXT refurbishment

In 2023, after years of refurbishing PAS<br><br>and XT systems, we expanded our<br><br>refurbished systems portfolio by adding<br><br>NXT systems. We shipped the first<br><br>refurbished NXT 1980Di system from our<br><br>TWINSCAN factory to a customer in<br><br>2024, addressing a specific market<br><br>segment that requires it.<br><br>While we continue to produce new NXT<br><br>systems, the NXT 1980Di refurbishment<br><br>represents an impressive enhancement to<br><br>our portfolio, utilizing a new industrialized<br><br>approach for volume, efficiency, quality<br><br>and cost.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	26
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services (continued)

| Metrology and inspection systems | | --- || New in 2024 | | --- |

Our metrology and inspection systems

enable chipmakers to accurately measure

the printed patterns on wafers, ensuring

they align with the intended designs. Our

comprehensive portfolio supports

chipmakers in optimizing patterning

throughout 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

produce data at the speed and accuracy

needed during high-volume manufacturing

to enable our process control software

solutions to create automated feedback

control loops. This optimizes the lithography

system settings for each exposure to

reduce edge placement error (EPE),

widening the process window to

achieve the highest yield and

best performance.

Optical metrology

Our YieldStar optical metrology systems

allow chipmakers to assess the quality of

patterns on the wafer in volume production,

through fast, accurate overlay

measurements. We offer two categories of

YieldStar systems for use before and after

‘etching’ (the stage when the material in

any open spaces is removed to reveal the

3D version of the patterns on the wafer).

Pre-etch metrology measures the overlay

and focus of the lithography system and

the pattern printed on the photoresist.

Post-etch metrology measures the overlay

and critical dimension (CD) of the final

patterns formed on the wafer.

In 2024, we shipped the first 'early

access' YieldStar 1390 – our next-

generation standalone in-device

metrology system. It is used for post-

etch overlay measurements, enabling the

inspection of device structures with more

accuracy and higher speeds than

scanning electron microscope (SEM)

solutions. This supports very high

sampling densities, driving more

advanced process window control loops

that improve the overlay performance

and yield of the whole semiconductor

manufacturing process, while reducing

the cost of ownership significantly for

metrology.

In 2024, we shipped our 1,000th

YieldStar system, marking a significant

milestone since the first YieldStar (250D)

was shipped to customers in 2008.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	27
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services (continued)

| Metrology and inspection systems | | --- || New in 2024 | | --- |

E-beam metrology and inspection

Our HMI high-resolution electron beam (e-

beam) systems provide critical dimension

(CD) and edge placement error (EPE)

metrology and defect detection, for chip

development and production monitoring at

high throughput. This capability enables our

customers to identify and analyze individual

chip defects among millions of printed

patterns, significantly enhancing process

control.

While e-beam solutions were historically too

slow to monitor volume production

processes, we have increased the

throughput to now uniquely offer e-beam

solutions for use in high-volume

manufacturing (HVM) as well as the R&D

phase, which involves extensive testing,

validation and fine-tuning to optimize the

complete microchip manufacturing process

for reliable, high-yield mass production.

We offer two types of solutions to support

R&D and HVM. E-beam metrology is used to

monitor CD and EPE data at resolutions

necessary for the implementation of EUV

lithography, while e-beam inspection is used

to monitor voltage contrast and physical

defects for in-line process control.

Our groundbreaking multiple e-beam

(multibeam) inspection systems leverage

several of ASML’s core technologies:

advanced electron optics, advanced stages

and computational technology. They operate

at substantially higher throughput and lower

cost of ownership, enabling broader

adoption of multibeam voltage contrast and

physical defect inspection for in-line

monitoring in mass production.

We continue to extend technology

leadership in voltage contrast inspection and

physical defect inspection with the widely

adopted single-beam platform. The HMI

eScan 460 is our latest single-beam

inspection system, delivering higher

resolution and faster throughput to capture a

wide range of voltage contrast defect types.

The HMI eP5 XLE is our new high-resolution

physical defect inspection system capable

of a wide range of landing energies to detect

buried and sub-surface defects in 3D

devices.

Our single-beam metrology systems offer

high-resolution and large field-of-view

capabilities with metrology application

software, enabling local and global CD and

EPE measurements for EUV patterning

process characterization and in-line

monitoring and control.

In 2024, we shipped a number of HMI

eScan 460 and HMI eP5 XLE single-beam

inspection systems to customers

worldwide to support their advanced node

development and production.

Our first-generation multibeam system

HMI eScan 1100 with 25 beams has

demonstrated on average a 12x

throughput advantage over single-beam

systems in voltage contrast inspection use

cases at Logic and DRAM customers. The

higher throughput enables larger wafer

area coverage for effective capturing of

defect fingerprints, creating a strong

customer pull for system shipments for in-

line process monitoring in R&D and high-

volume manufacturing.

We have released our next-generation

high-resolution e-beam metrology system

HMI eP6 for large-volume metrology

applications and continued to ship eP6

systems to customers in 2024. eP6 has

demonstrated metrology performance

improvements over eP5 on customer

wafers, with 50% improvement in

precision, about 70% improvement in

distortion (critical for EPE measurement)

and 40% improvement in throughput.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	28
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our products and services (continued)

| System and process<br><br>control software | | --- || Computational lithography | | --- || Managing our installed base system | | --- || New in 2024 | | --- | | Computational lithography is advancing<br><br>rapidly, focusing on enhancing the<br><br>performance of lithography processes<br><br>used in semiconductor manufacturing.<br><br>Recent developments include improved<br><br>algorithms for optical proximity correction<br><br>(OPC) and source-mask optimization<br><br>(SMO), which enhance pattern fidelity and<br><br>resolution. Machine-learning techniques<br><br>are increasingly being applied to predict<br><br>and mitigate manufacturing variations,<br><br>leading to better yield and efficiency. |

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, thereby

maximizing yield. Using powerful algorithms,

they analyze metrology and inspection data

and calculate necessary corrections for each

individual exposure. This provides a

feedback loop to the lithography system to

minimize EPE in subsequent wafer lots.

Our roadmap aims to apply more powerful

algorithms with higher-order corrections to

enable our customers to continue improving

EPE performance.

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.

During lithography, diffraction of the light

and physical and chemical effects in the

photosensitive layer 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.

By 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

lithography system.

In addition, they develop the recipes to

optimize reticle patterns to achieve the best

pattern fidelity, which will be applied to each

and every new reticle during high-volume

manufacturing to ensure 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.

Our computational lithography solutions are

based on accurate computer simulations of

the lithography system and process,

representing a wide variety of physical and

chemical effects. With these simulations, we

can predict how a designed pattern will

appear when printed on a wafer.

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.

Our installed base continues to grow,

comprising not only new systems but

refurbished ones with new owners in new

markets and applications as well. To provide

our customers with the best value

proposition, we offer an extensive installed

base management portfolio, including a wide

range of service and upgrade options.

We develop and sell product options

and enhancements 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	29
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Supporting our customers

We believe a strong relationship

Where we operate – more than 60 locations across 3 continents
	Asia
	China<br><br>Japan<br><br>Malaysia<br><br>Singapore<br><br>South Korea<br><br>Taiwan
	North America
	Arizona<br><br>California<br><br>Colorado<br><br>Connecticut<br><br>Idaho<br><br>Massachusetts	New Mexico<br><br>New York<br><br>Oregon<br><br>Texas<br><br>Utah<br><br>Virginia
	EMEA
	Belgium<br><br>France<br><br>Germany<br><br>Ireland<br><br>Israel<br><br>Italy<br><br>Netherlands<br><br>United Kingdom

with our customers based on

mutual trust is vitally important.

We share the risks and rewards of

what we do because our success

is inextricably linked. We are one

of the world’s leading

manufacturers of chipmaking

equipment, while our customers

are the world’s leading microchip

manufacturers. We enable them to

create the patterns that define the

electronic circuits on a chip.

That’s why we collaborate with our

customers to understand how our

technology can best fit their needs and

challenges: building partnerships, sharing

knowledge and risks, aligning our

investments in innovation, and increasingly

focusing on the long-term challenges for the

next five to ten years and beyond. The level

and nature of collaboration varies from

region to region and customer to customer

depending on various factors.

We develop our solutions based on their

input, help them achieve their technology

and cost roadmaps, and work together –

often literally in the same team – to ensure

that what we build today is what they need

tomorrow. Engaging fully with customers is

also an important part of working toward

securing the full product portfolio that will

sustain our company into the future.

As our installed base continues to grow, we

work very closely with our customers to

develop and sell options and enhancements

designed to improve throughput, patterning

performance and overlay to optimize the

cost of ownership over a system’s lifetime.

Building on our customer relationships

We market and sell our products directly to

customers. Our account managers, field and

application engineers, and service and

technical support specialists are located

close to our customers’ operations

throughout Asia, the US, and Europe, the

Middle East and Africa (EMEA).

Trust is the foundation for our customer

relationships. Our customers expect us to

have the right means to meet their needs

and expectations, consistently deliver upon

the promises we make, be transparent about

what we are doing, and fairly share the risks

and rewards with them.

How we provide customer support

We support our customers 24/7 with a broad

range of applications, services and technical

support products to maintain and enhance

our systems’ performance – such as next-

day parts delivery and an easy-to-use,

centralized customer portal.

Dedicated customer support teams across

the world effectively prioritize our customers’

needs and then attach solving power in

central organizations to address them.

We seek to ensure the systems in our

customers’ fabs run at the highest levels of

predictability and availability.

We have well-trained customer support

engineers in the regions where we operate.

Together with our Global Support Center,

they manage to solve more than 99% of

issues in the field. We offer specialized

training on an ongoing basis to extend the

capabilities of our local customer service

teams, and we continue to further enhance

the technical expertise of local field

engineers.

In 2024, we integrated our customer-facing

roles into one Customer Solution & Support

(CS&S) organization to further simplify our

customers’ interface to ASML. We also

appointed a Chief Customer Officer on

ASML’s Board of Management. We believe

these developments will help us continue to

provide excellent support and keep on

building customer trust as the business

grows.

Read more in Strategic report – Our business –

Engaged stakeholders – Customers

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	30
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Driving innovation

Using the Rayleigh criterion to drive<br><br>innovation
At ASML, we optimize the Rayleigh criterion equation to reduce the<br><br>critical dimension so our lithography systems can print ever-smaller<br><br>features.
Wavelength (lambda, λ)	Numerical aperture (NA)	k1 factor
Over the years, ASML’s<br><br>lithography systems have used<br><br>shorter wavelengths of light to<br><br>shrink chip features. We started<br><br>with i-line systems using 365 nm<br><br>ultraviolet (UV) light and added<br><br>deep ultraviolet (DUV) systems<br><br>with 248 nm light (KrF) and,<br><br>later, 193 nm light (ArF). With<br><br>the addition of our extreme<br><br>ultraviolet (EUV) systems that<br><br>use light with a wavelength of<br><br>13.5 nm – almost x-ray range –<br><br>we enabled a significant leap in<br><br>resolution.	One way that we increase<br><br>NA – and therefore shrink<br><br>chip features – is by using<br><br>larger lenses and mirrors in<br><br>our lithography systems.<br><br>Another way is by using a<br><br>technique called immersion.<br><br>Our ArF immersion systems<br><br>(DUV) leverage water’s<br><br>higher refractive index by<br><br>maintaining a thin layer of<br><br>water between the last lens<br><br>element and the wafer to<br><br>increase the system’s NA.	Together with our<br><br>computational<br><br>lithography and<br><br>patterning control<br><br>software solutions, we<br><br>provide the control<br><br>loops for our<br><br>customers to optimize<br><br>their mask designs and<br><br>illumination conditions.
Over the past 40 years, we’ve improved the resolution (critical dimension) of our systems by<br><br>two orders of magnitude by making improvements to wavelength, NA and k1.
Read more in Strategic report – Our business – Our products and services
Moore’s Law
Why are we so focused on using the Rayleigh criterion to shrink chip features? In 1965, Intel co-<br><br>founder Gordon Moore predicted that the number of transistors in an integrated circuit (IC) would<br><br>double every year for the next decade. In 1975, he revised the prediction to every two years. His<br><br>prediction has proved to be true – or, as some argue, a self-fulfilling prophecy. In the years that<br><br>followed, this exponential growth led to significant increases in computing power and reductions in<br><br>cost, driving rapid advances in technology and innovation in the semiconductor industry.<br><br>Today, although physical limitations are making it more challenging  to shrink transistors further, the<br><br>semiconductor industry continues to boost performance using what Moore called ‘circuit and<br><br>device cleverness’. Innovative chip designs, new materials, advanced packaging and complex 3D<br><br>structures are sustaining the industry’s progress. ASML's lithography products play a crucial role in<br><br>the affordable mass production of these advanced designs that are ensuring the continuation of<br><br>Moore's Law and enabling future technological innovations.				Rayleigh criterion
---
The resolution of our lithography systems is crucial for<br><br>shrinking the size of transistors on microchips. To be able to<br><br>print sharper, finer details, we live by the Rayleigh criterion –<br><br>the resolution equation that determines just how small the<br><br>features that can be printed on a chip are.

CD is the critical

dimension, or

resolution. It represents

the smallest structures

that the lithography

system can print.

Lambda (λ) is the

wavelength of the light

source. The smaller the

wavelength, the smaller

the structures that can be

printed.

k1 is 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	31
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we innovate

As a crucial manufacturer of

lithography equipment, ASML

is a vital part of the semiconductor

value chain. We don’t innovate in

isolation, but work as architects

and integrators – collaborating

closely with customers, our supply

chain, and industry and research

partners in a strong innovation

ecosystem.

R&D investments (costs) in € billion

Innovation is fundamental to the continuing

success of our business. Every day, around

16,000 R&D engineers take on the exciting

challenge of innovating across our holistic

lithography portfolio, which includes the

most advanced lithography systems in the

world. To stay ahead, we invest heavily in

R&D – spending €4.3 billion in 2024,

compared with €4.0 billion in 2023, and

further building our capability to meet our

customers’ needs.

In the context of overall innovation – which

includes ESG-related innovation – we have

already exceeded our goal to invest more

than €4.0 billion in global R&D by 2025.

Read more in Sustainability statements – Social –

Innovation ecosystem – ESG innovation

A collaborative network at the cutting

edge of our digital future

To drive the fast pace of innovation in our

value chain and make progress together,

we rely on our strong innovation ecosystem.

We work hard to maintain it, developing

long-term relationships with our customers,

suppliers, research partners and peers,

listening to and pushing each other to

continuously innovate. We trust our supply

chain to manufacture most system parts and

modules, and many partners are deeply

involved in developing our new technology.

Our innovation ecosystem consists of five

groups of innovation partners that we have

strong relationships with:

•Customers: We aim to innovate across

our entire product portfolio at the same

pace as our customers – through large and

sustained investment in R&D. This so-

called ‘double-helix’ approach is designed

to accelerate innovation and provides

access to a large, leading-edge knowledge

base across a wide range of technologies.

•Suppliers: Our supply chain is a critical

enabler of our ambition to grow our core

business through innovation.

•Co-solution partners: We work closely

with partners in the semiconductor value

chain that deliver essential technologies to

enable the efficient and cost-effective

manufacturing of microchips.

•Technology partners: We co-develop

knowledge and expertise within a wide

network of technology partners and

institutes to accelerate innovation in

specific areas.

•Academia: Working together with

universities provides us with access to

knowledge and talent.

We also collaborate with both local and

global industry platforms, such as with the

Confederation of Netherlands Industry and

Employers (VNO-NCW), SEMI’s

Sustainability Advisory Council and the

Semiconductor Climate Consortium (SCC),

to jointly tackle ESG challenges.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	32
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we innovate (continued)

Filling the innovation funnel
We encourage our researchers to build wide networks in the broader technology space. This supports the constant stream of new ideas into<br><br>the technology pipeline that flows through what we call our ‘innovation funnel’. Based on our fundamental understanding of our markets and<br><br>the needs of our customers, we select new ideas with the potential to advance our products and their customer application.
Research teams	Development and engineering teams
Our research teams focus on generating and exploring exciting new ideas and<br><br>demonstrating their feasibility. They scout for new ideas, which are then taken<br><br>through the proof-of-concept stage. Those that pass the feasibility assessment<br><br>and have a favorable value proposition are transferred to our development and<br><br>engineering teams.	Guided by our product generation process, our engineers create new components,<br><br>subsystems and applications, integrating them into a functional system, while<br><br>ensuring we innovate with a strong focus on time to market.

Generating ideas and finding

technological innovations and solutions

Our researchers continuously scout for

ideas within the semiconductor industry and

beyond to fill our innovation funnel,

searching for potential solutions to the

challenges we may face with products in

development or production as well as new

technologies. Our focus on R&D helps us

support our customers while delivering on

our ESG and sustainability commitments.

ASML’s success depends on our ability to

deliver complex products quickly and

efficiently. Our decision-based product

generation process (PGP) helps us minimize

risk and uncertainty by describing how we

define, develop and introduce products to

market – and also how we phase them out.

It allows us to make deliberate decisions at

each step on whether to proceed with a

product, revealing possible issues early on

to avoid later disappointments.

Read more in Sustainability statements – Social –

Innovation ecosystem

Defining our products and services

roadmap

Product development in the semiconductor

industry is managed through a series of

roadmapping exercises – where ‘roadmaps’

define the plans for future product

development.

At ASML, we first assess the roadmaps of

our customers – sometimes called the

‘device roadmaps’ – from which we

determine the requirements for our own

development needs.

This starts with a holistic lithography<br><br>solutions roadmap, which maps out the<br><br>entire lithography product and services<br><br>solutions space for the future. This in turn<br><br>is broken down into product modules or<br><br>technical building blocks, as well as service<br><br>needs. For some of the building blocks, we<br><br>need to pursue a technology feasibility<br><br>study to ensure that the technology<br><br>addresses our customers’ demands in<br><br>terms of performance, cost and timing.
	ASML Fellowship Program
	We recognize and honor our technical<br><br>experts because we know that our<br><br>company’s success is built on technology<br><br>leadership. One of the ways we do this is<br><br>through the ASML Fellowship Program,<br><br>which awards employees who make an<br><br>outstanding technical contribution to<br><br>ASML and are recognized both inside<br><br>and outside the company as a top<br><br>technical authority. In 2024, three new<br><br>ASML Fellows were appointed and one of<br><br>our current Fellows was promoted to the<br><br>title of Senior Fellow. Former Chief<br><br>Technology Officer Martin van den Brink<br><br>was appointed Honorary Fellow, a special<br><br>award honoring 40 years of his technical<br><br>leadership.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	33
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we innovate (continued)

Academia, industry and research

How we innovated in 2024
Our strategy is to give customers the<br><br>products and capabilities they need to<br><br>deliver on technology’s potential to make<br><br>a positive contribution to society. As well<br><br>as creating some of the most advanced<br><br>machines in the world, this includes an<br><br>increased focus on sustainability through<br><br>parts commonality and reuse, and<br><br>improvements in the performance and<br><br>energy efficiency of our products to<br><br>reduce costs and waste.<br><br>A number of innovation achievements<br><br>over the last 12 months include<br><br>significant improvements in metrology<br><br>solutions, enhancing the accuracy and<br><br>speed of measurements with reference<br><br>to currently available metrology solutions<br><br>(YieldStar). We are further increasing the<br><br>EUV source power in order to<br><br>accommodate our customers’ dose<br><br>requirements, while improving the<br><br>conversion efficiency (energy used per<br><br>photon output) and creating various<br><br>options to increase the robustness and<br><br>durability of our wafer tables.
High NA EUV lithography: Inspired by the film industry
---	---
The anamorphic optics in our High NA<br><br>EUV (0.55 NA) lithography systems are a<br><br>unique solution to an intriguing problem:<br><br>delivering the highest-resolution imaging<br><br>without compromising on productivity.<br><br>In lithography, light first hits a reticle with<br><br>the blueprint of a chip layer. Projection<br><br>optics then focus that light, now with the<br><br>blueprint encoded in it, onto a<br><br>photosensitive silicon wafer.<br><br>Our High NA EUV lithography system<br><br>requires larger mirrors to achieve its 8 nm<br><br>resolution – but the size of the mirrors was<br><br>initially causing imaging issues. Increasing<br><br>the image's demagnification from 4x to 8x<br><br>could have solved the problem, but would<br><br>have required chipmakers to switch to<br><br>larger reticles if they wanted to avoid<br><br>slowing down production.	Instead, we teamed up with our long-time<br><br>strategic partner ZEISS Semiconductor<br><br>Manufacturing Technology to find a way<br><br>to minimize High NA EUV’s impact on<br><br>the semiconductor ecosystem. And we<br><br>found our answer in the film industry.<br><br>In cinematography, anamorphic cameras<br><br>squeeze recorded images in one direction,<br><br>so they can capture widescreen images<br><br>at full resolution on standard-sized film.<br><br>Anamorphic projectors then stretch the<br><br>image to display it properly on movie<br><br>screens. Using this approach as<br><br>inspiration, together with ZEISS we<br><br>developed anamorphic optics for<br><br>lithography – giving chipmakers fast,<br><br>High NA EUV imaging while still using the<br><br>industry-standard reticle size.

institutes

We co-develop technical expertise with a

broad network of technology partners,

including universities and research

institutions. 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, and

imec in Belgium.

In 2024, we intensified our collaboration with

the Dutch academic ecosystem by adopting

a more strategic approach to engaging

Dutch universities. A central aspect of this

strategy is to encourage collaboration on

themes relevant to the Dutch economy,

leveraging each university’s strengths to

avoid fragmentation and foster a cohesive

innovation ecosystem. We have identified

key focus areas for our partners to maximize

impact and aim to initiate large national

collaboration initiatives on selected topics,

bringing together universities, companies,

and research and technology organizations.

A longstanding relationship with Eindhoven

University of Technology

Our partnership with Eindhoven University of

Technology (TU/e) is evolving to leverage

top science and engineering talent in the

Brainport Eindhoven region. In May 2024,

we signed a new agreement to expand our

collaboration, building on a ten-year

strategic research roadmap established

earlier in 2023.

TU/e will enhance the joint research program

and train more PhD students in plasma

physics, mechatronics, optics and AI. ASML

is investing €80 million over the next decade

at TU/e, primarily for PhD programs and

infrastructure. TU/e is also investing over

€100 million in semiconductor technology,

including a new cleanroom and additional

PhD positions. To increase the impact of the

collaboration with TU/e, we will aim to

involve other companies and institutions in

the region.

Academic collaboration at ARCNL

A key aspect of our academic collaboration

is the ARCNL research institute in

Amsterdam, a public–private partnership

between ASML, NWO (Dutch Research

Council) and three universities (Universiteit

van Amsterdam, Vrije Universiteit

Amsterdam and the Rijksuniversiteit

Groningen). The collaboration focuses on

fundamental research in physics and

chemistry relevant to nanolithography and

the semiconductor industry.

In recent years, we have developed a unique

model allowing ARCNL scientists to pursue

their research interests while creating value

for ASML. Celebrating its ten-year

anniversary in 2024, ARCNL has become a

respected institute known for excellent

research and close industry collaboration.

Our joint research is yielding results in areas

such as EUV plasma generation and

interferometric metrology techniques. These

efforts aim to enhance patterning accuracy,

sustainability and productivity for our

customers.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	34
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we innovate (continued)

Public–private partnerships

We work closely with private<br><br>partners to develop and<br><br>deliver research and<br><br>innovation projects<br><br>subsidized by the EU and its<br><br>member states.

We work closely with private partners to

develop and deliver research and innovation

projects subsidized by the EU and its

member states. These collaborative projects

aim to advance integrated circuit (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.

ASML and its partners play an important role

in enhancing Europe's sovereignty by driving

fundamental research and groundbreaking

innovation across Europe, the Middle East

and Africa (EMEA). We believe this

collaboration generates significant business

value, fuels job creation and builds a robust

knowledge base, as evidenced by the

increasing number of patents each year from

ASML and our partners.

Ongoing collaboration in EU-funded projects

In 2024, we continued coordinating four EU-

funded projects, each with a scheduled

duration of three years: Integration of

processes and modules for the 2 nm node

meeting power performance area and cost

requirements (ID2PPAC); 14 angstrom

CMOS IC technology (14ACMOS); 14

angstrom module integration (14AMI); and

10 angstrom CMOS exploration (10ACE).

We kept our public partners up to date and

organized consortium meetings for

knowledge exchange.

ASML also participates in the Key Digital

Technologies Joint Undertaking (KDTJU)

project SC4EU, led by Infineon Technologies

AG, to improve demand forecasting in the

semiconductor supply chain. Additionally,

we submitted a new project proposal,

ACT10, for the Chips Joint Undertaking

(Chips JU), targeting EU contributions to

chip technology for the next decade at the

10 angstrom node. This consortium of 32

partners spans multiple countries and is

valued at over €111 million in R&D costs,

unlocking an estimated amount of €53

million in public funding. The project has

been approved by the KDTJU and approval

by national authorities is expected early

2025.

Furthermore, ASML is involved in the Chips

JU project E2PackMan, also led by Infineon

Technologies AG, which aims to accelerate

innovations in electronic packaging

manufacturing with 60 partners across

Europe.

In 2024, our total contribution to R&D across

active EU public–private partnerships was

€18.9 million, with a total investment of

€70.9 million over three years, contributing

to a total project size of €418.9 million.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	35
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our marketplace

Globally: the major election year 2024 did see easing inflation and the<br><br>real GDP growth was above 3%*. A strong US GDP growth was partly<br><br>offset by lower growth in Europe and Japan. Geopolitical tensions<br><br>continued to be high, while AI dominated the headlines in the<br><br>semiconductor ecosystem.
The semiconductor market recovered from<br><br>the 2023 downturn, but significant<br><br>differences emerged among end markets<br><br>and product groups. While the Memory<br><br>market rebounded, industrial and automotive<br><br>semiconductors faced corrections in 2024<br><br>and high inventory levels. The lithography<br><br>market remained strong, with lower demand<br><br>from key customers offset by increased<br><br>shipments to China, supported by a high<br><br>backlog built over previous years. After<br><br>fulfilling this backlog, we anticipate a shift to<br><br>more normalized sales levels to China<br><br>moving forward.	We have strong confidence that the<br><br>semiconductor ecosystem will continue to<br><br>innovate and grow at a high single-digit<br><br>compound annual growth rate. Factors<br><br>that may impact our business – as<br><br>explained in more detail over the next few<br><br>pages – include:
	1.	Macroeconomic<br><br>and geopolitical trends
	2.	Megatrends
	3.	Semiconductor industry market
*Source: IMF World Economic Outlook, October 2024				1.	Macroeconomic and geopolitical trends
---	---	---	---
Economic outlook			Global geopolitics – technological<br><br>sovereignty
Description<br><br>Analysts expect GDP growth to continue<br><br>to stay above 3% for 2025 and 2026 with<br><br>a recovery in Europe and Japan and a<br><br>slight slowdown of growth in the US and<br><br>China compared to 2024. This typically<br><br>offers a good foundation for a positive<br><br>semiconductor market trend. The 2024<br><br>market growth was dominated by AI which<br><br>led to a surge in demand for AI-related<br><br>Memory – both DDR (double data rate)<br><br>and HBM (high-bandwidth memory) – and<br><br>specific advanced Logic chips. This trend<br><br>is expected to continue in 2025. The PC<br><br>and smartphone markets are expected to<br><br>continue to stay on the gradual growth<br><br>trajectory while industrial and automotive<br><br>semi markets, which did see a correction<br><br>in 2024, are expected to pick up in the<br><br>course of 2025.		What it means for ASML<br><br>Our EUV business saw shifts in demand<br><br>timing, predominantly driven by a lack of<br><br>end-market demand and readiness of fabs.<br><br>After the inventory correction in 2023, our<br><br>customers started ramping up fabs again.<br><br>The digestion of all inventory took longer<br><br>than initially anticipated, delaying the need<br><br>for new equipment – and meaning ASML<br><br>saw a slight shift in demand timing.<br><br>For DUV, demand was higher than we could<br><br>deliver, particularly in China and for specific<br><br>models. We are working closely with our<br><br>customers and suppliers to optimize our<br><br>output capability, ride out the uncertainty<br><br>and manage the risks.	Description<br><br>With the strategic importance of the<br><br>semiconductor industry only likely to grow,<br><br>semiconductors are crucial to the economic<br><br>and strategic development of countries and<br><br>regions. Many are pushing for<br><br>‘technological sovereignty’ to ensure<br><br>security of supply, resilience and<br><br>technological leadership in semiconductor<br><br>technologies and applications – fueling<br><br>capital expenditure in new regions.<br><br>What it means for ASML<br><br>As governments increasingly see<br><br>semiconductor manufacturing as<br><br>strategically significant, chips acts are<br><br>incentivizing our customers to build<br><br>manufacturing facilities in the US, Europe<br><br>and Asia. As well as sharing our views with<br><br>governments on semiconductor<br><br>manufacturing, we work closely with our<br><br>customers to build the semiconductor<br><br>manufacturing ecosystem in these new<br><br>regions, while retaining our focus on<br><br>supporting incumbent regions. External<br><br>factors such as the timing of subsidies and<br><br>the risk of restrictions make forecasting<br><br>market demand less predictable.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	36
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our marketplace (continued)

1.	Macroeconomic and geopolitical trends (continued)
Global geopolitics – export controls
Description<br><br>On June 24, 2024, the EU Council adopted<br><br>the 14th package of restrictive measures<br><br>against Russia – aiming to maximize the<br><br>impact of existing sanctions by closing<br><br>loopholes and emphasizing the EU’s goal<br><br>to stop dual-use technology flowing to<br><br>Russia. The regulation entered into force on<br><br>June 25, 2024, with some measures<br><br>focused on circumvention of the sanctions<br><br>as well as the prohibition on transferring<br><br>intellectual property rights with respect to<br><br>dual-use goods taking effect on December<br><br>26, 2024. ASML is not involved in export to<br><br>Russia or Belarus but undertakes<br><br>continuous efforts to strengthen its robust<br><br>risk assessment and due diligence<br><br>processes as well as its policies, controls<br><br>and procedures to mitigate and manage<br><br>effectively the risks of indirect exportation<br><br>to Russia and Belarus.<br><br>On September 6, 2024, the Dutch<br><br>government published an updated license<br><br>requirement regarding the export of<br><br>immersion DUV semiconductor equipment.<br><br>As a result of the updated license<br><br>requirements, and in line with US Export<br><br>Administration Regulation, ASML needs to<br><br>apply for export licenses with the Dutch<br><br>government rather than the US government		for shipments of its TWINSCAN NXT:1970i<br><br>and 1980i DUV immersion lithography<br><br>systems.<br><br>The Dutch export license requirement is<br><br>already in place for the TWINSCAN NXT:2000i<br><br>and subsequent DUV immersion systems.<br><br>Sales of ASML’s EUV systems are also subject<br><br>to license requirements. The updated license<br><br>requirement published by the Dutch<br><br>government came into effect from September<br><br>7, 2024. The Japanese regulations were also<br><br>brought in line with the US and Dutch<br><br>regulations on September 8, 2024.<br><br>On December 2, 2024, the US authorities<br><br>published an updated version of the advanced<br><br>computing and semiconductor manufacturing<br><br>equipment rule, imposing additional<br><br>restrictions on suppliers for the export of chip<br><br>manufacturing technology. These regulations<br><br>became effective immediately with a delayed<br><br>compliance date of December 31, 2024 for<br><br>some of the changes.The updated export<br><br>control regulations contain additions to the list<br><br>of restricted technologies including metrology<br><br>and software. In addition, further fab locations,<br><br>mainly in China, were added to the US list of<br><br>restrictions.	What it means for ASML<br><br>ASML is fully committed to complying with<br><br>all applicable laws and regulations<br><br>including export control legislation in the<br><br>countries in which we operate, while we<br><br>continue to develop our technology and<br><br>serve our customers to the best of our<br><br>ability. ASML will continue to work with its<br><br>worldwide customers to deliver lithography<br><br>and metrology systems not impacted by<br><br>the global export control restrictions and/<br><br>or sanctions. We continue to educate<br><br>governments on the semiconductor<br><br>manufacturing process and ecosystem to<br><br>foster understanding of the potential<br><br>impacts of current and future regulatory<br><br>measures.		2.		Megatrends
---	---	---	---	---
				The world is changing fast and<br><br>semiconductors are a key enabler to help<br><br>solve some of society's toughest<br><br>challenges. In 2024, we have seen a<br><br>strong growth in artificial intelligence (AI)<br><br>technology, enabled by leading-edge<br><br>semiconductor solutions, both in<br><br>Advanced Logic as well as AI-related<br><br>DRAM. AI is expected to further stimulate<br><br>semiconductor solutions to tackle these<br><br>big challenges and increase overall GDP<br><br>growth.<br><br>The continuing convergence of wireless<br><br>communication, telecoms, media and<br><br>cloud technology via connected devices is<br><br>driving demand for advanced<br><br>semiconductors across the globe.<br><br>Growing populations, urbanization, the<br><br>energy transition and electrification to<br><br>support smart mobility are increasing<br><br>demand for advanced electronic devices.<br><br>AI requires leading-edge high-<br><br>performance processor chips and a<br><br>significant increase in DRAM memory<br><br>chips compared to traditional compute<br><br>architectures. It also stimulates the<br><br>mainstream market, as AI requires large<br><br>amounts of data collected via sensors<br><br>which can be used to further drive robotics<br><br>and workflow automation.
			Connected<br><br>world
	•Internet of things<br><br>•Hyperconnectivity<br><br>•Cloud infrastructure<br><br>•Edge computing
			Climate change<br><br>and resource scarcity
	•Energy transition<br><br>•Electrification, smart mobility<br><br>•Agricultural innovation<br><br>•Smarter use of limited resources
			Social and<br><br>economic shifts
	•Working, learning remotely<br><br>•Healthcare medical tech<br><br>•Technological sovereignty<br><br>•Automation

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	37
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our marketplace (continued)

	Connected<br><br>world
With the IoT, smart, connected<br><br>networks of more energy-efficient<br><br>devices seamlessly communicate over<br><br>powerful 5G networks – unleashing<br><br>the power of unprecedented data<br><br>volumes better and faster than<br><br>ever. In combination with AI, this<br><br>provides people with more innovative<br><br>functionalities and applications,<br><br>improves human-to-machine<br><br>interactions, and enhances data<br><br>management and analytics.			2.	Megatrends (continued)
---	---		Internet of things
---
Semiconductors are increasingly<br><br>present in the world around us. Many of<br><br>the products with semiconductors are<br><br>directly or indirectly connected to the<br><br>internet to maximize the benefits offered<br><br>with the added silicon. AI further reinforces<br><br>the value offered by these internet-<br><br>connected devices as it allows them to<br><br>capture data and use it to enhance the<br><br>value of the device itself and also of other<br><br>internet-connected devices.
Hyperconnectivity
5G enables a new kind of network designed<br><br>to connect almost everyone and everything<br><br>around the world – including machines,<br><br>objects and devices. Person-to-person,<br><br>person-to-machine and machine-to-<br><br>machine communication are fueling large<br><br>increases in bandwidth demand and<br><br>changes in communications because of the<br><br>complexity, diversity and integration of new<br><br>applications and devices using the network.
Cloud infrastructure
To enable cloud computing – the on-<br><br>demand availability of computer system<br><br>resources, especially data storage and<br><br>computing power – a cloud infrastructure is<br><br>required. This includes hardware, software,<br><br>storage and network resources.		Edge computing
---
We are moving fast toward edge<br><br>computing, which focuses on processing<br><br>data closer to its source rather than in<br><br>centralized data centers. The current era of<br><br>mobile computing – where you bring the<br><br>computer with you – is moving us into an<br><br>immersive world of ubiquitous computing,<br><br>with computing power available<br><br>everywhere, driven by AI.<br><br>What it means for ASML<br><br>Moore’s Law is the guiding principle for the<br><br>semiconductor industry and the motor<br><br>behind its transition from mobile to<br><br>ubiquitous computing. This transition<br><br>continues to expand, driving the three main<br><br>elements in computing – applications, data<br><br>and algorithms – that feed each other in a<br><br>virtuous cycle: applications generate data,<br><br>which fuels new algorithms, which again<br><br>leads to new applications that generate<br><br>new data. The vast amounts of data and<br><br>insights people can access are expected to<br><br>fuel semiconductor business growth and<br><br>the digital transformation.			Climate change<br><br>and resource scarcity
---	---
With an urgent collective response<br><br>needed to limit global warming to<br><br>1.5°C, climate change is a crucial<br><br>matter for governments, companies<br><br>and individuals worldwide.
Energy transition
The shift to renewables is helping deliver<br><br>the clean, affordable energy the world<br><br>needs to counter climate change.<br><br>Semiconductors are harnessing,<br><br>converting, transferring and storing energy<br><br>from sources such as solar and wind as<br><br>electricity – and ensuring national power<br><br>grids are both responsive and robust. They<br><br>are at the core of smart (home) devices and<br><br>play an important role in reducing overall<br><br>energy consumption.			Electrification and smart mobility
---
Automotive is one of the fastest-growing<br><br>market segments – driven by<br><br>electrification, autonomy and other<br><br>megatrends. Integrated automotive<br><br>systems consist of a full range of<br><br>scalable, flexible computing solutions that<br><br>require advanced and mature<br><br>semiconductor devices. Advanced driver-<br><br>assistance systems enabled by<br><br>electronics and semiconductors –<br><br>considered ‘supercomputers on wheels’ –<br><br>are also expected to contribute to the<br><br>growth of the automotive segment in the<br><br>semiconductor industry.<br><br>In addition, across the world, people are<br><br>changing their views about personal<br><br>transport. Instead of owning expensive<br><br>and environmentally harmful vehicles,<br><br>they’re seeking car-sharing, ride-sharing,<br><br>ride-hailing, micro-mobility (using small,<br><br>low-speed, human- or electric-powered<br><br>transportation devices) and micro-transit<br><br>(on-demand shared private or semi-public<br><br>transport). The technologies underpinning<br><br>this move to smart mobility, such as<br><br>mobile apps, are all enabled by<br><br>semiconductors.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	38
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our marketplace (continued)

Climate change and<br><br>resource scarcity (continued)
Agricultural innovation
Farmland in remote locations, particularly<br><br>those with emerging economies, can be<br><br>vulnerable to climate change. With access<br><br>to mobile devices increasing, local farmers<br><br>are using their smartphones in<br><br>combination with smart sensors to<br><br>improve agricultural knowledge and<br><br>decision-making. The results are better<br><br>crops and greater, more sustainable food<br><br>security – enabled by smaller, more<br><br>affordable microchips.
Smarter use of limited resources
The semiconductor industry can also play<br><br>an important role by reducing its own<br><br>climate impacts. The semiconductor<br><br>manufacturing process consumes large<br><br>volumes of energy and water, and driving<br><br>Moore’s Law to enable shrink and improve<br><br>computing power and storage capacity<br><br>fuels demand for these vital resources.<br><br>Innovative architectures and a new way of<br><br>looking at the entire ecosystem will be<br><br>required to enhance the industry’s energy<br><br>and water resource efficiency.		2.	Megatrends (continued)
---	---		What it means for ASML<br><br>Semiconductors play an important role in<br><br>addressing climate change across various<br><br>sectors. In the automotive industry, a shift<br><br>toward electric vehicles and autonomous<br><br>driving is expected to significantly increase<br><br>the number of semiconductor components<br><br>in cars. Additionally, the integration of<br><br>digital technologies to support the energy<br><br>transition and agricultural innovations relies<br><br>on semiconductor solutions to enable<br><br>smart grids and enhance agricultural<br><br>practices. By advancing our EUV<br><br>productivity roadmap, we help customers<br><br>simplify complex multiple-patterning layers<br><br>into a single exposure, thereby reducing<br><br>resource consumption in the<br><br>semiconductor manufacturing process.
---
Read more in Sustainability statements –<br><br>Environmental			Social and<br><br>economic shifts
---	---
Digital technologies are driving<br><br>transformative change. They create<br><br>new opportunities for a more<br><br>prosperous future, but at the same<br><br>time pose new challenges.
Working and learning remotely
Since the emergence of the COVID-19<br><br>pandemic, remote and hybrid working and<br><br>learning have become increasingly<br><br>prevalent.
Healthcare and medical tech
Predictive analysis of health data from<br><br>multiple sources, combined with machine<br><br>learning and AI, is being harnessed to<br><br>improve healthcare services and patient<br><br>outcomes. Semiconductor technology has<br><br>allowed the creation of innovative products<br><br>that can effectively detect, diagnose and<br><br>treat various medical conditions.			Automation
---
A new generation of lightweight robots<br><br>connected to a wide network and fitted<br><br>with smart sensors enable humans and<br><br>machines to safely and efficiently work side<br><br>by side, supported by AI. In addition, smart<br><br>industry devices use real-time data<br><br>analytics and machine-to-machine sensors<br><br>to optimize processes, predict bottlenecks,<br><br>and prevent errors and injuries.		What it means for ASML<br><br>The ongoing digitalization of various<br><br>sectors such as healthcare and<br><br>manufacturing keeps on driving the need<br><br>for semiconductors. The integration of<br><br>digital technologies in these industries<br><br>requires robust semiconductor solutions to<br><br>enable efficient data processing, real-time<br><br>analytics and connectivity.
---

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	39
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our marketplace (continued)

3.	Semiconductor industry market

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 2013 to

2023 was 6%. In 2023, almost 1 trillion

chips were shipped around the world,

feeding a $527 billion industry. In 2024, the

semiconductor market recovered, led by

strong demand for AI servers and overall

recovery of memory chip pricing. The PC

and smartphone market did see a recovery,

though not as strong as initially expected,

while the industrial and automotive chip

markets were still in the middle of a

correction.

We expect that the microchip market will

continue to grow in line with a 9% CAGR

from 2025 to 2030 and surpass $1 trillion

by 2030. The global annual wafer capacity

is expected to be 780,000 wafer starts per

month per year in this five-year time frame.

Compared to the expectations set at the

2022 Investor Day, we now expect more

weighting to advanced Logic (≤7 nm and

below nodes) and advanced DRAM,

required to support AI-related applications,

and less weighting on NAND and

mainstream wafers. We believe this mix

change can be favorable for ASML, given

that advanced Logic and DRAM are more

lithography-intensive than NAND and

mainstream.

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

markets, producing chips in dedicated Logic

or Memory fabrication plants (fabs).

Logic chips are processors, such as CPUs

(central processing units) and GPUs

(graphics processing units). They are 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 chip design and

distribution, but do not manufacture

microchips themselves.

Memory chips can store large amounts of

data in a very small area. There are two main

types: volatile memory chips such as DRAM,

which efficiently provide data to the

processor and only save data when the

device is turned on; and non-volatile

Memory 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 vast network of connected

devices known as the internet of things (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 lithography

systems.

Generative AI gained a lot of traction during

2024, resulting in strong demand for GPU

chips (Logic) and high-bandwidth memory

(HBM) among our customers. Both products

are still a small portion of the overall Logic

and Memory market, but this is expected to

grow fast in the coming years. At our 2024

Investor Day, we presented our expectations

on the semiconductor end markets (as

shown on the next page).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	40
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our marketplace (continued)

3.	Semiconductor industry market (continued)
Smartphone		Personal<br><br>computing	Consumer<br><br>electronics	Automotive	Industrial<br><br>electronics	Wired and wireless<br><br>infrastructure	Servers, data centers<br><br>and storage
Key driver
Continued refresh of all semiconductor content including image sensors and edge AI processors		High-end compute and<br><br>Memory, fast conversion<br><br>to solid-state drive (SSD),<br><br>edge AI processors	Both low-power<br><br>and high-bandwidth<br><br>connectivity, sensors	High-end processors for<br><br>autonomous driving and<br><br>power electronics for<br><br>engine electrification	Connectivity, edge<br><br>processors, sensors, power<br><br>(control) electronics for the<br><br>energy transition, and high-<br><br>end processing for robotics	Continued innovation to<br><br>increase bandwidth and<br><br>reduce latency, requiring<br><br>high-end processing	AI requiring high-end<br><br>processing and DRAM,<br><br>and cloud processing<br><br>requiring advanced<br><br>processing, NAND<br><br>and DRAM
2025 estimated market size(bn)								Total
		92	70	76	84	53	156		679
2030 estimated market size(bn)
		112	83	114	120	70	361		1,051
Outlook CAGR 2025–2030 (%)
		4%	3%	9%	7%	6%	18%		9%
Source: Based on ASML analysis

All values are in US Dollars.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	41
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our business strategy

Our purpose is to unlock the potential of

Our business strategy consists of six priorities that will drive long-term growth
		Deepen<br><br>customer trust			Extend our technology and holistic<br><br>product leadership
	1		2
		•Innovate on our entire portfolio to continue to<br><br>provide critical, differentiated and cost-effective<br><br>solutions to our customers<br><br>•Enable chipmakers in their pursuit of more powerful,<br><br>smaller, cheaper, more integrated and more energy-<br><br>efficient chips, with an affordable and holistic<br><br>lithography roadmap across the entire ASML portfolio<br><br>•Place cost and energy consumption reduction at the<br><br>core of value creation for customers by continuing<br><br>to simplify process flows, ensuring the highest<br><br>transistor density at all process steps, and promoting<br><br>technologies that scale improved productivity,<br><br>lower costs of technology for customers and reduce<br><br>emissions<br><br>•Maximize good printed transistors from lithography by:<br><br>a.Maximizing yield with AI-based process control,<br><br>metrology and inspection<br><br>b.Optimizing resolution with our DUV and EUV<br><br>portfolio<br><br>c.Enhancing productivity with system throughput<br><br>and efficiency improvements<br><br>d.Improving accuracy with solutions for overlay,<br><br>critical dimension uniformity and EPE<br><br>e.Support our customers’ front end 3D integration<br><br>with holistic lithography
•Deepen customer trust and satisfaction through<br><br>increased value creation, focused on innovation,<br><br>cost, quality, sustainability and response time<br><br>•Strengthen partnerships with customers based on<br><br>even deeper understanding and anticipation of their<br><br>needs and product roadmaps<br><br>•Increase the bandwidth, responsibility and<br><br>accountability of our customer teams to deliver on<br><br>customer requirements and carry the customer<br><br>voice throughout the entire organization				•Simultaneously optimize total lithography cost by:<br><br>a.Improving system cost with increased platform<br><br>commonality<br><br>b.Increasing system extendibility and improve<br><br>lifetimes<br><br>c.Reducing service and utility costs

people and society by pushing technology

to new limits. Our vision is that we enable

groundbreaking technology to solve some

of humanity’s toughest challenges.

Our market opportunity
Based on different market scenarios shared during<br><br>our 2024 Investor Day, we presented an opportunity<br><br>to achieve the following:
2030
€44–60bn
Annual revenue
56–60%
Gross margin

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	42
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our business strategy (continued)

	3	Strengthen ecosystem<br><br>relationships
•Foster even closer relationships with our suppliers<br><br>and broader ecosystem, based on shared goals and<br><br>responsibility for cost, quality and sustainability<br><br>outcomes					4	Create an exceptional<br><br>workplace
---	---	---
•Build a workplace that works for everyone:<br><br>Fostering inclusion, diversity and belonging<br><br>•Invest in people effectiveness and development<br><br>•Strengthen our leadership: Accelerating<br><br>development and building our future pipeline as of<br><br>today					5	Drive operational<br><br>excellence
---	---	---
•Create a learning organization that drives a culture of<br><br>continuous improvement with fast feedback loops<br><br>and a sustainable impact on our safety, quality, cost<br><br>and delivery performance<br><br>•Drive cross-company business performance<br><br>improvements to reduce cost, cycle times, improve<br><br>quality and secure on-time delivery<br><br>•Optimize our industrial footprint to have market,<br><br>talent and technology access while protecting our<br><br>know-how and our business<br><br>•Secure a successful ERP migration to enable scaling<br><br>and drive improvements in cost, quality and<br><br>compliance<br><br>•Protect and defend ASML interests and reputation by<br><br>driving a culture of integrity and compliance,<br><br>including for products, information security, cyber<br><br>resilience and export controls						Deliver on our ESG<br><br>sustainability mission<br><br>and responsibilities
---	---	---
	6
Environmental<br><br>Continue to expand computing power but with minimal<br><br>waste, energy use and emissions<br><br>Social<br><br>Ensure that responsible growth benefits all our<br><br>stakeholders<br><br>Governance<br><br>Act on our responsibilities and aim to fully anchor<br><br>them in the way we do business through our focus on<br><br>integrated governance, engaged stakeholders and<br><br>transparent reporting

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	43
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our business model: What we need to create sustainable long-term value

The depth and breadth of our resources and the relationships we build are key to our continued success in growing a sustainable business

and a holistic approach to lithography.

People and culture		Manufacturing facilities
		Manufacturing facilities
	We depend on more than 44,000 talented,<br><br>dedicated and motivated employees who live<br><br>our values of challenge, collaborate and care.<br><br>Every day, our colleagues in R&D,<br><br>manufacturing, customer support, sourcing<br><br>and supply chain, and support functions take<br><br>on the exciting challenge of building and<br><br>maintaining the most advanced lithography,<br><br>metrology and inspection systems in the<br><br>world.		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 259 >		Read more on page 22 >
Capital
---	---	---
	We have strong capital reserves, underpinned by a robust balance sheet. Total shareholder equity at the end of 2024 amounts to 18.5 billion on a consolidated balance sheet total of 48.6 billion and net cash provided by operating activities of 11.2 billion in 2024.	In 2024, we spent a total of €4.3 billion in<br><br>R&D. But we do not innovate alone – our<br><br>almost 16,000 R&D employees collaborate<br><br>closely within an innovation ecosystem of key<br><br>partners in 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 pages 336, 339 >	Read more on page 31 >

All values are in Euros.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	44
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our business model: How we create sustainable long-term value

Our position as a leading<br><br>supplier of holistic lithography<br><br>enables us to create value<br><br>across the entire value chain.<br><br>Our holistic lithography<br><br>portfolio – based on the<br><br>intelligent integration of<br><br>lithography systems,<br><br>computational lithography,<br><br>metrology and inspection, and<br><br>process control software<br><br>solutions – keeps the scaling of<br><br>microchips affordable for our<br><br>customers.<br><br>At ASML the customer always<br><br>comes first – and our solutions<br><br>are based on their input.<br><br>We help our customers<br><br>generate the greatest value per<br><br>silicon wafer, creating<br><br>microchips that are more<br><br>powerful, faster and more<br><br>energy-efficient.

With more than 10,000

customer support employees,

including service engineers

and applications specialists,

we work round the clock to

make sure our systems in our

customers’ fabs are running

smoothly. Through installed

base management, we aim to

reduce the cost of ownership

of our systems in the field with

a wide range of service and

upgrade options.

Innovation

and R&D

Customer support

and installed base

management

System integration

and installation

Together with our customers,

suppliers and partners across

our innovation ecosystem,

we innovate the most

advanced lithography systems

in the world.

As system architects

and integrators, we

work together with our

world-class supplier network

to support our customers

in making smaller, faster

and more energy-efficient

microchips, while driving

down the cost per wafer.

Holistic lithography
Helping our customers generate<br><br>the greatest value per silicon<br><br>wafer, creating microchips<br><br>that are more powerful, faster<br><br>and more energy-efficient.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	45
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our business model: The sustainable long-term value we created in 2024

Our success depends on strong, sustainable relationships with all stakeholders in the value chain.

We aim to create sustainable long-term value for them, and to use their input to develop our strategy, products and services.

Customers	Employees	Suppliers	Shareholders	Society
Our world-leading lithographic<br><br>systems enable our customers to<br><br>develop ever-more powerful and<br><br>energy-efficient chips for new<br><br>applications and devices. At the<br><br>same time, we help our<br><br>customers reduce costs and their<br><br>environmental footprint.	ASML is a growth 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, and<br><br>aim to provide a diverse and<br><br>inclusive environment where they<br><br>can achieve their full potential.	Our suppliers help deliver our<br><br>innovations and are critical to our<br><br>value chain and our ambition to<br><br>be a sustainable leader in the<br><br>semiconductor industry. Long-<br><br>term relationships, close<br><br>collaboration, transparency and a<br><br>commitment to sustainability with<br><br>our suppliers are key to our<br><br>success.	The effective and disciplined<br><br>investment of cash flow drives the<br><br>profitable growth of our company,<br><br>and delivers 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.	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<br><br>and benefits society. For<br><br>example, we share our expertise<br><br>with universities and research<br><br>institutes, support young	tech companies and promote<br><br>science, technology, engineering<br><br>and mathematics (STEM)<br><br>education worldwide. We are also<br><br>committed to creating sustainable<br><br>value by reducing our<br><br>environmental footprint – both<br><br>from our operations and during<br><br>the use of our products and<br><br>services.
€28.3bn	78.9%	5,150	€11.2bn	€1,084	88%
Total net sales	Employee engagement score<br><br>(three-year rolling average)	Number of suppliers	Net cash provided by operating<br><br>activities	Amount invested per employee,<br><br>including employee giving	Reuse rate of parts returned<br><br>from field and factory
583	21%	91%	€6.40	€18.9m	32.8 kt
Net system sales (in units)	Women in entire workforce<br><br>(headcount)	Responsible Business Alliance<br><br>(RBA) self-assessment<br><br>completed (in %)	Proposed annualized dividend<br><br>per share	Contribution to<br><br>EU research projects	Emissions from manufacturing<br><br>and building (scopes 1 and 2)
86%	3.8%	100%	€0.5bn	12.0 Mt
Customer satisfaction survey<br><br>score	Attrition rate	Suppliers with overall high risk<br><br>evaluated and follow-up agreed<br><br>(in %)	Share buyback	Indirect emissions from total<br><br>value chain (scope 3)

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	46
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Engaged stakeholders

We listen to our<br><br>stakeholders –<br><br>customers, employees,<br><br>suppliers, shareholders<br><br>and society – and work<br><br>with them to make the<br><br>right decisions.
Our stakeholders – and our<br><br>interaction with them – is<br><br>fundamental to the long-term<br><br>success of our business.<br><br>By regularly engaging with them, we<br><br>can better understand our impact on<br><br>them, and their respective needs<br><br>and expectations.
	Page 167<br><br>>

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	47
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Engaged stakeholders (continued)

| Customers | At each stage of the customer relationship we aim to foster trust, advocacy and<br><br>continuous engagement – with the goal of achieving high customer satisfaction and<br><br>loyalty. As customer requirements become more complex, it takes longer to align with<br><br>a shared vision, so we seek to start earlier in the process. By placing our customer<br><br>relationship at the center of our work, we can leverage our innovations and develop<br><br>even more sophisticated solutions alongside them. | | --- | --- || At ASML, we focus on our customers’ needs | | | | --- | --- | --- | | There are thousands of ASML systems installed in<br><br>customer fabs across the globe. Our customers<br><br>want to keep these machines running 24 hours a<br><br>day, seven days a week, 365 days a year.<br><br>With around 10,000 customer support employees,<br><br>including service engineers and applications<br><br>specialists, we work round the clock to make sure our<br><br>systems in our customers’ fabs are running smoothly. | | | | | Our customers are why we exist.<br><br>We collaborate with customers at all levels<br><br>of the organization – from CEO-to-CEO<br><br>interaction right through to on-the-ground<br><br>support at individual fabs – to help them<br><br>achieve their goals and ensure our<br><br>solutions perfectly fit their requirements.” | | | 86% | | | | | | Jim Koonmen | | | | Executive Vice President and Chief Customer Officer | | Customer satisfaction score | | |

What’s happening in their world

As described in the Our marketplace section earlier in

this report, macroeconomic uncertainty – including

technological sovereignty and export controls – led

certain customers to remain cautious and control capital

expenditure and cash flow more carefully in 2024.

How we respond

We’re working closely with our customers to optimize our

output capability, navigate through the uncertainty and

manage the risks. We’re engaging with them to mutually

understand the affordability of different technologies and,

through regular meetings and reviews, we’re aligning on

their current and future needs to adjust our demand plans

while staying flexible for the expected coming upturn. We’re

also continuing our capacity investment plans to meet our

customers’ long-term growth targets and, in compliance

with export control regulations, we’ve 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’ve deployed improvement actions identified in our

2023 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 with respect to the

improvement actions.

In September 2024, we sent out our latest survey – to

measure customer satisfaction, loyalty and trust and to

identify improvement areas to enable us to better serve

our customers.

Survey results showed stable high 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 the

technology forward to meet their current and future needs.

How we engage

•Regular meetings with customers, including:

–Technology review meetings, where our senior

technology experts, our Chief Executive Officer

(CEO) and our Chief Customer Officer (CCO)

discuss technology roadmaps and requirements

with customers

–Executive review meetings, where members of our

senior management and Board of Management

discuss business and strategies with customers

–Operational review meetings, where we review

topics related to our customers’ operational

activities

•Annual customer feedback survey

•Voice of the Customer program, which provides firsthand

feedback about our customers’ needs and challenges for

employees without direct access to them

•Various technology symposia and special events

Read more in Strategic report – 2024 stories – Powering

technology forward with customers

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	48
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Engaged stakeholders (continued)

| Employees | We strive for engaged employees who are proud to work for ASML and committed to<br><br>our vision and ambitions. Innovation thrives in an environment where everyone is<br><br>empowered to contribute. By creating an exceptional workplace that fosters inclusivity,<br><br>we aim to enable everyone to unlock their full potential and drive our collective<br><br>success. | | --- | --- || We have exceptional talent and<br><br>need an exceptional workplace<br><br>where our talent can achieve<br><br>great things, to move ASML to<br><br>our next success.” | | --- | | Cristina Monteiro | | Head of Human Resources & Organization || 87% | 54% | | --- | --- | | of new colleagues<br><br>starting in 2024 indicated<br><br>they had a positive<br><br>onboarding experience | of our employees have<br><br>been in the company<br><br>less than five years | | | 29% | | | of our employees today<br><br>are not nationals of the<br><br>country they work in |

What’s happening in their world

We have grown rapidly in recent years and anticipate

continued expansion in our workforce to meet industry

demand. At the same time, there is a global talent

shortage, particularly in our industry, alongside rising

employee expectations about work-life balance and the

need for a sense of purpose and belonging at work.

In 2024, we introduced a new leadership and

governance structure, requiring further focus on

strategic alignment and providing employees with clear

direction and insight into future goals. Our annual

employee engagement survey provided insights into the

themes our employees want us to focus on: inclusion,

well-being and career development, as well as work

processes, collaboration and alignment of the strategic

topics.

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

of recent improvements 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 new people strategy that answers the

challenges and opportunities of our growth and the

evolving nature of global work, as well as the themes

raised by the engagement survey.

Read more in Strategic report – 2024 stories – Powering

technology forward with our people

How we engage

Direct engagement:

•Employee engagement survey (annually)

•Develop and perform cycle including employee

feedback and performance reviews (annually)

•Learning programs (on occurrence)

•ASML's Speak Up Service (on occurrence)

•ASML's EHS incident management (on occurrence)

•Employee networks, such as Women, Seniors,

Atypical, early career, multicultural and workers of all

national origins, LGBTQIA+, Parents and Veterans (on

occurrence)

•ASML 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 myEHS

(daily)

•Onboarding program for new employees (upon joining)

•All-employee meeting and senior management

meetings, department employee meetings and

interactive lunch sessions with Board members (on

occurrence)

•Employee Relations (on occurrence)

Engagement via representation:

•Works Council/unions (on occurrence)

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	49
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Engaged stakeholders (continued)

| Suppliers | We engage with our suppliers to help deliver our innovations. They are critical to our<br><br>value chain and our ambition to be a sustainable leader in the semiconductor industry. | | --- | --- || Working with our suppliers | | | --- | --- | | By partnering closely with and supporting our<br><br>suppliers, we aim to ensure that they’re<br><br>prepared to work with us for years to come –<br><br>and to weather the changes that the chip<br><br>industry is known for, including periods of rapid<br><br>growth and business-cycle fluctuations. | | | | Enabling our supply chain to<br><br>grow with us toward our 2030<br><br>targets calls for an evolution in<br><br>how we work with our suppliers.” | | | Wayne Allan | | | Executive Vice President and Chief Strategic Sourcing &<br><br>Procurement Officer | | The top 35 of our 5,150 suppliers make up 80% of our total sourcing spend | |

What’s happening in their world

Over recent years, the world of our suppliers has been

turbulent. Geopolitical uncertainties have disrupted our

supply chain due to reduced material availability and

rising prices. Additionally, inflationary pressures have

affected our suppliers in raw materials, energy and

wages. Despite market uncertainties, suppliers are

required to build up further capacity for future growth

while putting pressure on cost, quality and ESG

performance. Our future growth – and that of our

customers – can only be met if our suppliers are capable

and willing to keep up.

How we respond

We want to build and maintain strong business

relationships with our suppliers, based on mutual trust.

We listen to our suppliers when they openly share their

pain points and challenges, and are implementing

improvements relating to quality issues, early supplier

involvement during the industrialization phase of new

product introductions, reducing cycle time and cost,

planning with our suppliers and ESG sustainability.

Read more in Strategic report – 2024 stories – Powering

technology forward with suppliers

How we engage

•ASML Suppliers' Day

•Direct interactions via supplier account teams/

sourcing account leaders

•Supplier audits

•Site visits

•Supplier newsletter

•Responsible Business Alliance (RBA) self-assessment

questionnaire (SAQ)

•ASML's Speak Up Service

•Knowledge sessions on ESG sustainability

•ASML’s Supplier Collaboration Day

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	50
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Engaged stakeholders (continued)

Shareholders	We aim to help shareholders – as well as financial and ESG sustainability analysts –<br><br>understand our long-term investment strategy. We communicate with them about<br><br>our financial growth strategies and opportunities, our financial and ESG<br><br>sustainability performance, our outlook and our shareholder returns.
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.
3.0 billion
Returned to shareholders through dividends and share buybacks.

All values are in Euros.

What’s happening in their world

For investors in the semiconductor industry, 2024 was a

dynamic year and it was expected to be a transition year

in preparation for anticipated strong growth in 2025.

There were quite some dynamics that took place over

the course of the year. However, the growth in AI is still

a key driver for growth in the semiconductor industry. It

has created a shift in the market dynamics that is not

benefiting all of our customers equally, which creates

both opportunities and risks. Geopolitical

announcements regarding export control restrictions

and customer capital expenditure cuts created volatility

in the investment community.

How we respond

During the year, ASML’s management and Investor

Relations team actively engaged with our investor

community to discuss specific topics relevant to our

equity story. We actively engage with the investor

community via a large number of (ESG-related)

conferences, roadshows and conference calls.

On November 14, 2024 we hosted an Investor Day to

update the financial market on our company's growth

opportunities. We also encourage investors to visit our

Veldhoven (NL) 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

•AGM

•Investor and analyst calls, and Investor Days

•Company quarterly results presentations and press

releases

•Various (ESG) investor conferences and roadshows

•Various sustainability questionnaires, assessments

and survey feedback tasks

•Direct personal interactions in line with our Bilateral

Contacts Policy, as published on our website

•Engagement meetings with investors associations (e.g.

VEB, Eumedion, VBDO)

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	51
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Engaged stakeholders (continued)

| Society | We know that our actions and activities have an impact beyond ASML – on the<br><br>environment, for example, and on the world around us in its broadest sense, which is<br><br>how we define society. We engage with organizations, communities and other bodies in<br><br>society on a wide range of issues – from reducing our environmental footprint to<br><br>regulatory matters and fulfilling our commitment to playing an active role in the<br><br>communities where we operate. | | --- | --- || Building community connections | | | --- | --- | | At our first community conference (ASML<br><br>Maatschappelijke Conferentie 2024), we<br><br>strengthened ties with the local community in the<br><br>Brainport Eindhoven region. | Around 200 representatives from local government and<br><br>social organizations in the field of education, sports,<br><br>arts and culture joined us to discuss key issues, such<br><br>as inequality, labor shortages and housing, as well as<br><br>the ambition and coherence of our society investment<br><br>programs. The insights gained will guide our future<br><br>agenda and approach. |

What’s happening in their world

Increasingly, the local community feels the impact of the

rapid development of our headquarters in the Brainport

Eindhoven region – home to around half of ASML’s

employees. 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 to this, we want to help

newcomers integrate and feel at home in our region.

Meanwhile, our headquarter campus expansion should

take into account the interests of our close neighbors.

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,

ASML and our stakeholders have identified and formed

17 program strategies that we began to execute during

2023.

Read more in Sustainability statements – Social – Valued partner in

our communities

We operate in an international industry with a global

value chain, where strong incentives to compete and

drive innovation are key. 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.

Read more in our ASML Government & External Affairs Report 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)

•ASML's 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):

•Dialogue with tax authorities

•Relevant EU roundtable discussions

•Compliance reporting

•Proactive dialogue with government and municipalities

Read more in Strategic report – 2024 stories – Powering

technology forward with local communities

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	52
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Performance

and risk

	Performance
53	Message from our CFO
56	Performance KPIs
61	Long-term growth opportunities
	Risk
63	How we manage risk
67	Risk factors

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	53
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---
A year of transition and preparation,<br><br>ahead of the upturn to come
---
Message from our Executive Vice President and<br><br>Chief Financial Officer
Roger Dassen
We delivered<br><br>on our<br><br>expectations<br><br>in spite of the<br><br>challenges.”
---

Dear Stakeholder,

Our results for 2024 were in line with the

previous year, consistent with guidance.

As we forecasted, this was a period of

transition where we continued to make

significant investments in technology and

ramping up capacity to ensure that we are

ready to support our customers through the

industry upturn. As we have seen in 2024,

artificial intelligence is clearly the key driver

of growth in the semiconductor industry.

However, we believe it is creating a shift in

the market, with some of our customers

benefiting more than others, which creates

both opportunities and risks leading to some

customer cautiousness.

Total net sales rose by €0.7 billion, or 2.6%,

reflecting a decrease in net system sales of

0.8%, and an increase in net service and

field option sales of 15.6% compared to

2023. The decrease in net system sales was

primarily due to lower NXE (EUV 0.33 NA)

sales. This was partially offset by the

introduction of our latest NXE value

proposition, the TWINSCAN NXE:3800E,

which we successfully delivered to multiple

customers in 2024. Furthermore, lower NXE

system sales were partially offset by the

successful delivery of the first High NA EUV

(EUV 0.55 NA) lithography system and

greater demand for DUV immersion systems.

Regarding net service and field option sales,

the rise was largely due to improved net

service sales, which continue to scale as a

result of a growing installed base of systems

and higher system utilization levels at certain

customers.

Our gross margin remained stable in 2024

compared to 2023. Gross margin was

affected by a dilutive impact of the first High

NA EUV lithography system deliveries, but

offset by growth in our installed base

business.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	54
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

A year of transition and preparation, ahead of the upturn to come (continued)

Message from our Executive Vice President and Chief Financial Officer

Roger Dassen

Managing the cycles of our industry

“
We believe<br><br>that the years<br><br>ahead will see<br><br>a significant<br><br>uptick in the<br><br>market.”
Roger Dassen
Executive Vice President<br><br>and Chief Financial Officer		€28.3bn
---
Total net sales
51.3%
Gross margin
€3.0bn
Returned to shareholders

The semiconductor industry has always

been cyclical, with the peaks and troughs

driving a sharp focus on cost and cash

management in the short term while

preparing the ground for the growth

opportunities throughout the entire

ecosystem in the longer term.

While artificial intelligence (AI) continues to

be a growth driver for the semiconductor

industry, this is not benefiting all customers

equally in the short term.

This, combined with competitive foundry

dynamics, has led to several fab push-outs

and consequent changes in lithography

demand timing, in particular for EUV.

In terms of our Memory business, customers

have limited their capacity additions, with

greater emphasis on the technology

transition supporting high-bandwidth

memory (HBM) and DDR5 (double data rate

5) AI-related demand.

However, ASML is very much a business

focused on the long term. Led by AI together

with the energy transition and electrification,

the industry growth drivers will continue to

expand the application space for both

advanced and mature nodes. Therefore, we

remain confident about growth opportunities

in the long term.

Realizing the potential of AI

AI has the potential to be the next big driver

of productivity and innovation for the wider

society. Today, we see industries across the

board preparing to incorporate AI

capabilities in their upcoming critical

applications. This in turn is translating into

major investments in the field of high-

performance computing.

This emergence of AI represents a

significant growth opportunity for

semiconductors, similar to what we saw

across previous computing waves (PC,

internet and smartphone). However, the AI-

led demand for computing power is

increasing faster than that supported by

Moore’s Law, which in turn gives rise to

power consumption and cost challenges.

Unleashing the full potential of AI will require

us to overcome these challenges – which,

from a semiconductor viewpoint, implies an

acceleration of the advanced Logic roadmap

as well as improved performance and energy

efficiency of the DRAM Memory architecture.

Therefore, on balance, we anticipate a

steady pace of AI adoption in the coming

years, contributing toward our expectation

of overall worldwide semiconductor sales

crossing $1 trillion by 2030. In terms of end

markets, we see servers, data centers and

storage as the key initial beneficiary of this

emergence of AI, with associated

semiconductor sales for this end market

expected to exceed $350 billion by 2030.

Transforming our business processes

AI is not only driving our markets – it is also

transforming how we work internally, in line

with our goal of leading AI innovation in the

semiconductor equipment industry.

We are developing a comprehensive

strategy that aims to harness the potential of

both predictive and generative AI across

various domains – driving innovation,

improving efficiency and seizing competitive

advantage. This strategy, supported by the

appointment of our – first – Head of AI

Program & Strategy in June 2024, focuses

on capturing key opportunities in four areas:

speed and quality in R&D; excellence in

product leadership and support; speed and

quality in operations; and enabling capability

and efficiency.

Among its most notable achievements of the

last 12 months, the AI program prioritized

over 40 opportunities where AI could help us

work better and faster.

Our responsible AI program will now

concentrate on developing the overarching

strategy, building an integrated roadmap,

and providing governance through oversight

and coordination.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	55
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

A year of transition and preparation, ahead of the upturn to come (continued)

Message from our Executive Vice President and Chief Financial Officer

Roger Dassen

Supporting our ESG commitments

For our finance team, one of the year’s most

demanding workstreams centered on

preparing for the European Sustainability

Reporting Standards (ESRS), and required a

substantial investment in resources. Thanks

to the commitment and expertise of our

people in meeting an extremely demanding

deadline, I am pleased to say that this

Annual Report is in accordance with ESRS

requirements.

We took ESRS very seriously right from the

time it was first announced, beginning with

focusing on a gap assessment and

organizational readiness check in 2022. This

was followed by a robust, well-governed

project based on collaboration by teams

across the entire breadth of ASML.

We aim to balance our growth with<br><br>social responsibility, ensuring that we<br><br>share our success while addressing the<br><br>challenges that come with it.”
Roger Dassen
Executive Vice President<br><br>and Chief Financial Officer

While ESRS compliance necessitated a

great deal of hard work and skill from our

team, it has brought new rigor to how we

manage ESG and enabled us to accelerate

our ESG sustainability strategy. With

improved and expanded data, processes

and disclosures in place, ESRS has given us

greater insight into how we can contribute to

the sustainability of our supply chain and

customers as well as within our own

organization.

Engaging with our communities

I believe that when we invest in our

communities, we not only contribute to their

well-being, but also create a positive

environment where our employees can

thrive. We want to create a shared future

where everyone benefits.

As a major employer, we have a significant

impact on the regions where we operate.

In addition to recognizing our responsibility

to act as good and supportive neighbors, we

also know that we have the resources and

influence to make a real difference to the

lives of people well beyond the boundaries

of our organization.

We aim to balance our growth with social

responsibility, ensuring that we share our

success while addressing the challenges

that come with it. Our activities are

organized through our Community

Partnership Program with a focus on four

key areas: boosting the attractiveness of

local communities; aiming to keep these

communities inclusive; supporting science

and technology education; and supporting

ESG innovation.

During 2024, we invested €45.2 million in

community projects, including a

collaboration with local partners that aims to

add affordable homes to the Brainport

Eindhoven area, alleviating some of the

pressure that our growth puts on the

housing market.

Looking ahead

Our customers are fundamental to our

strategy, and we believe that lithography will

continue to play a crucial role in driving their

innovation forward. Our flexible and versatile

portfolio is well positioned to meet all our

customers’ needs. We’re expanding holistic

lithography to support 3D front-end

integration, enhance DUV and EUV

performance and cost-effectiveness, and

scale EUV technology well into the next

decade.

Looking ahead to 2025, we anticipate total

net sales between €30 billion and €35 billion,

consistent with previous guidance. The

expected gross margin is between 51% and

53%, which would be an increase compared

to prior years, alongside an annualized

effective tax rate of around 17%.

We continue to invest heavily in R&D,

positioning ourselves to capitalize on the

anticipated growth in the semiconductor

market, which could exceed $1 trillion by

2030, driven largely by AI advancements.

We aim to capture significant opportunities

in this expanding market, as we anticipate

that an increased number of critical

lithography exposures for advanced logic

and memory processes will be required.

Regarding our net service and field option

sales business, we anticipate revenue

growth compared to 2024, fueled by

increased service and upgrade activities

linked to our expanding installed base. EUV

technology in particular is playing an

increasingly significant role in driving this

growth.

Toward 2030, we see growth scenarios

leading to an opportunity to achieve 2030

annual revenue between approximately €44

billion and €60 billion, with a gross margin

between 56% and 60%. We will maintain a

consistent and disciplined capital allocation

policy prioritizing growth and other

necessary investments, then growing

dividends and then share buybacks. Overall,

our long-term outlook remains bright,

supported by strong market dynamics and a

robust products and services roadmap.

Roger Dassen

Executive Vice President and Chief Financial Officer

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	56
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Performance KPIs

Sales	Profitability	Liquidity
Total net sales	Gross profit	Cash and cash equivalents and short-term investments (year end)
€28.3bn	14.5bn	€12.7bn
2023: €27.6bn	2023: 14.1bn	2023: €7.0bn
Net system sales	Income from operations	Net cash provided by operating activities
€21.8bn	9.0bn	€11.2bn
2023: €21.9bn	2023: 9.0bn	2023: €5.4bn
Net service and field option sales	Net income	Free cash flow2
€6.5bn	7.6bn	€9.1bn
2023: €5.6bn	2023: 7.8bn	2023: €3.2bn
Sales of lithography systems (in units)1	Earnings per share
418	19.25
2023: 449	2023: 19.91
EUV systems recognized (in units)
44
2023: 53	1.
	2.

All values are in Euros.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	57
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Performance KPIs (continued)

| Operating results of 2024 compared to 2023 | | --- || Year ended December 31 (€, in millions) | 2023 | %1 | 2024 | %1 | % Change | | --- | --- | --- | --- | --- | --- | | Net system sales | 21,938.6 | 79.6 | 21,768.7 | 77.0 | (0.8) | | Net service and field option sales | 5,619.9 | 20.4 | 6,494.2 | 23.0 | 15.6 | | Total net sales | 27,558.5 | 100.0 | 28,262.9 | 100.0 | 2.6 | | Cost of system sales | (10,151.0) | (36.8) | (10,406.9) | (36.8) | 2.5 | | Cost of service and field option sales | (3,271.4) | (11.9) | (3,364.0) | (11.9) | 2.8 | | Total cost of sales | (13,422.4) | (48.7) | (13,770.9) | (48.7) | 2.6 | | Gross profit | 14,136.1 | 51.3 | 14,492.0 | 51.3 | 2.5 | | Research and development (R&D) costs | (3,980.6) | (14.4) | (4,303.7) | (15.2) | 8.1 | | Selling, general and administrative (SG&A) costs | (1,113.2) | (4.0) | (1,165.7) | (4.1) | 4.7 | | Income from operations | 9,042.3 | 32.8 | 9,022.6 | 31.9 | (0.2) | | Interest and other, net | 41.2 | 0.1 | 19.8 | 0.1 | (51.9) | | Income before income taxes | 9,083.5 | 33.0 | 9,042.4 | 32.0 | (0.5) | | Income tax expense | (1,435.8) | (5.2) | (1,680.6) | (5.9) | 17.0 | | Income after income taxes | 7,647.7 | 27.8 | 7,361.8 | 26.0 | (3.7) | | Profit from equity method investments | 191.3 | 0.7 | 209.8 | 0.7 | 9.7 | | Net income | 7,839.0 | 28.4 | 7,571.6 | 26.8 | (3.4) |

1.As a percentage of total net sales.

For a comparison of ASML’s operating results for the year ended December 31, 2023, with the year ended<br><br>December 31, 2022, please see Financial performance – Performance KPIs – Operating results of 2023<br><br>compared with 2022 of ASML’s Annual Report on Form 20-F for the year ended December 31, 2023.<br><br>The preparation of our Consolidated financial statements in conformity with US Generally accepted accounting<br><br>principles (GAAP) requires management to make estimates and assumptions. See Note 1 General information /<br><br>summary of general accounting policies to the Consolidated financial statements for detailed information on<br><br>critical accounting estimates.

Total net sales

In 2024, our total net sales further increased by €0.7

billion, or 2.6%, reflecting a decrease in net system

sales of 0.8%, and an increase in net service and field

option sales of 15.6% compared to 2023.

Net sales growth
(in billions)

Regarding Logic, net sales decreased by €2.8 billion,

mainly driven by competitive foundry dynamics which

have resulted in a slower ramp of new nodes among

certain customers, leading to several fab push-outs,

affecting the timing of EUV shipments in particular.

In Memory, net sales increased by €2.6 billion, mainly

driven by technology transitions, especially related to

high-bandwidth Memory and DDR5, which is primarily

the result of AI-related Memory demand.

Net service and field options sales increased mainly due

to the growing installed base of systems and higher

lithography tool utilization levels at certain customers.

Increase (decrease) on previous year

2.6%
Net sales
(0.8)%
Net system sales
15.6%
Net service and field option sales
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	58
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Performance KPIs (continued)

Net sales
(in millions)

The increase in total net sales was primarily driven by

higher net service and field option sales, increased DUV

immersion system shipments and the first EXE systems

(EUV 0.55 NA) being successfully installed in the field.

NXE (EUV 0.33 NA) sales volumes were lower due to a

shift in the market dynamics, driven by AI. This was

partially offset by our customers' transition to the

NXE:3800E, our latest NXE value proposition introduced

in 2024. We recognized 2 EXE and 42 NXE systems in

sales in 2024 compared with 0 EXE and 53 NXE systems

in 2023. Our system sales units across our DUV

technologies decreased from 396 in 2023 to 374 units in

2024.

The increase in net service and field option sales was

primarily due to higher service sales, as a result of the

growing customers’ systems installed base and higher

lithography tool utilization levels at certain customers.

Gross profit and gross margin
(in millions)

Gross profit increased mainly as a result of higher

service sales. The gross margin remained stable

compared to previous year. The gross margin benefited

from an improved net service and field options sales

margin, which was offset by a lower share of NXE sales

and the dilutive impact of the first EXE systems

recognized as sales.

Research and development costs
(in millions)

R&D costs were €4,303.7 million in 2024 compared with

€3,980.6 million in 2023. The increase in R&D costs

across each of our NXE, EXE, DUV and Applications

programs all support our holistic lithography solutions.

In 2024, R&D costs mainly related to:

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

NXE:4000 systems and further improving availability

and productivity of our EUV 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, which will 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 customers in i-line

(XT:260).

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

metrology and YieldStar optical metrology. In addition,

securing our multibeam inspection roadmap and

continuously expanding our investment in the holistic

software applications space.

€4.3 billion

R&D costs

8.1%

Increase in R&D costs

on previous year

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	59
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Performance KPIs (continued)

Selling, general and administrative costs
(in millions)

SG&A costs increased by 4.7% from 2023 to 2024,

largely due to increases in the number of full-time

equivalents (FTEs), in the salary per FTE and in the

investments in our Community Partnership Program.

Read more in Sustainability statements – Social – Valued partner in

our communities

Income taxes
(in millions)

The effective tax rate (ETR) increased to 18.6% in 2024,

compared with 15.8% in 2023. The higher rate is mainly

driven by the new ‘innovation box’ agreement that has

become effective as of 2024 as well as by the

recognition of a tax expense in relation to a historic tax

position.

Net income and earnings per share
(in millions)

Net income in 2024 amounted to €7,571.6 million, or

26.8% of total net sales, representing €19.25 basic net

income per ordinary share, compared with net income in

2023 of €7,839.0 million, or 28.4% of total net sales,

representing €19.91 basic net income per ordinary

share. The slight decrease in basic net income per

ordinary share is mainly due to a slightly lower net

income.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	60
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Performance KPIs (continued)

Cash flow analysis

We continue to invest heavily in our next-generation technologies in order to secure future growth opportunities

which require a significant cash investment in net working capital, capital expenditures and R&D.

We also continue our efforts to return cash to our shareholders through our dividends and share buyback program.

Year ended December 31 (€, in millions)	2023	2024
Cash and cash equivalents, beginning of period	7,268.3	7,004.7
Net cash provided by (used in) operating activities	5,443.4	11,166.2
Net cash provided by (used in) investing activities	(2,689.3)	(2,609.3)
Net cash provided by (used in) financing activities	(3,003.9)	(2,832.1)
Effect of changes in exchange rates on cash	(13.8)	6.4
Net increase (decrease) in cash and cash equivalents	(263.6)	5,731.2
Cash and cash equivalents, end of period	7,004.7	12,735.9
Short-term investments, end of period	5.4	5.4
Cash and cash equivalents and short-term investments	7,010.1	12,741.3
Purchases of property, plant and equipment and intangible assets	(2,196.2)	(2,083.1)
Free cash flow1	3,247.2	9,083.1

1.Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities (2024: €11,166.2 million and 2023: €5,443.4

million) minus purchase of property, plant and equipment (2024: €2,067.2 million and 2023: €2,155.6 million) and purchase of intangible assets

(2024: €15.9 million and 2023: €40.6 million).

Net cash provided by (used in) operating activities

The increase in net cash provided by operating activities of €5,722.8 million compared to 2023 is mainly due to the

cash received from down payments and the timing of cash payments to our suppliers. This is partially offset by a

decrease in net income of €267.4 million.

Net cash provided by (used in) investing activities

The decrease in net cash used in investing activities of €80.0 million compared to 2023 is mainly due to a decrease

in capital expenditures by €113.1 million, a decrease in our loans issued of €31.9 million. Additionally, in 2024, we

did not acquire any entities (2023: €33.6 million). This is partially offset by the higher net cash outflow from the

purchase and maturity of short-term investments of €102.0 million.

Net cash provided by (used in) financing activities

The net cash used in financing activities decreased by €171.8 million compared to 2023. While our total dividends

paid increased by €104.6 million, the total value of shares purchased through our share buyback program

decreased by €500.0 million. Additionally, in 2024, we had limited net proceeds from issuances of notes (2023:

€997.8 million) and no repayment of previously issued notes that became due (2023: €752.8 million).

As of December 31, 2024, ASML has sufficient capital for the company’s present obligations.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	61
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Long-term growth opportunities

Trend information

Looking to 2025, we expect full-year revenue between

€30 billion and €35 billion and gross margin between

51% and 53%.

Consistent with our view from last quarter, the growth in

AI is the key driver for growth in our industry, however

as we have noticed already in 2024 it has created a shift

in the market dynamics that is not benefiting all of our

customers equally.

If AI demand continues to be strong and customers are

successful in bringing on additional capacity to support

that demand, there is potential opportunity towards the

upper end of our revenue range. On the other hand,

there are also risks related to customers and geopolitics

that could drive results towards the lower end of the

range.

Looking at market segments we currently expect Logic

to be up versus 2024 with the ramp of leading-edge

nodes while we expect Memory to remain strong, similar

to 2024.

With respect to our net service and field option sales, we

expect revenue to grow versus 2024 driven by both

service and upgrades as part of a growing installed

base, in which EUV is having a growing contribution to

the business.

Our expectations and guidance for the first quarter of

2025 can be summarized as follows:

•Total net sales between €7.5 billion and €8.0 billion

•Gross margin between 52% and 53%

•R&D costs of around €1.140 billion

•SG&A costs of around €290 million

The trends, expectations and guidance discussed above

are subject to risks and uncertainties.

Read more in Strategic report – Forward-looking statements

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	62
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Long-term growth opportunities (continued)

Long-term growth opportunity for 2030

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 overall wafer demand growth of

780K wafer starts per month per year (2025-2030). 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.

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.

Read more in Strategic report – Our business strategy

Long-term models as presented at 2024 Investor Day
Total sales opportunity (in bn)
		2024<br><br>Investor Day
		Sales 2030
High scenario	C<br><br>M
EUV sales		32
Non-EUV sales (litho and M&I*)		15
Installed base management**		13
Total		60
Moderate scenario
EUV sales		26
Non-EUV sales (litho and M&I*)		14
Installed base management**		12
Total		52
Low scenario	6
EUV sales		22
Non-EUV sales (litho and M&I*)		11
Installed base management**		11
Total		44
* M&I: Metrology and inspection.** Installed base management equals our net service and field option sales.

All values are in Euros.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	63
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

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'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 ensure

sustainable long-term value creation.

The purpose of risk management is to<br><br>maximize the probability of achieving<br><br>business objectives responsibly.

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 Risk and

Business Assurance 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 Risk and

Business Assurance 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	•Bi-annual risk review<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
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	64
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we manage risk (continued)

Supervisory Board and Audit Committee

The Supervisory Board (SB) provides independent

oversight of management’s response 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 ensuring we comply 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 BoM 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 the CEO and CFO on the progress of this

assessment. The Chair also includes this update in the

Internal Control 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 was updated in 2024 and consists of 31 risk

categories grouped into six risk types. The risk universe

allows us to have a consistent approach to risk

assessments across ASML.

ASML risk universe
Strategy and products
•Industry cycle risk<br><br>•Geopolitical risk<br><br>•ESG expectations risk	•Business model risk<br><br>•Merger and<br><br>acquisition risk	•Competition risk<br><br>•Innovation risk<br><br>•Product<br><br>stewardship risk	•Product roadmap<br><br>execution risk<br><br>•Intellectual property<br><br>rights risk
Finance and<br><br>reporting	Partners	People	Operations
•Business planning risk<br><br>•Financial risk<br><br>•Shareholder activism risk<br><br>•Disclosure/external<br><br>reporting risk<br><br>•Tax and customs risk	•Customer<br><br>dependency risk<br><br>•Product/service<br><br>quality risk<br><br>•Supplier strategy and<br><br>performance risk<br><br>•Supply chain<br><br>disruption risk	•Knowledge management<br><br>risk<br><br>•Organizational<br><br>effectiveness risk<br><br>•Human resource risk	•Product<br><br>industrialization risk<br><br>•Process effectiveness and<br><br>efficiency risk<br><br>•Environment, health and<br><br>safety risk<br><br>•Continuity of own<br><br>operation risk<br><br>•Security risk<br><br>•Information technology risk<br><br>•Manufacturing and<br><br>install risk
Legal and compliance
•Contractual liability risk	•Violation of laws and regulations risk

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 reviewed, updated and approved

annually, or more frequently when there are significant

internal and/or relevant external developments.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	65
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we manage risk (continued)

ERM process

The ERM process provides a holistic approach

combining both top-down (company-level) and bottom-

up (organization- and process-level) perspectives. This

helps us identify, evaluate and manage risks at the right

level. We continuously seek to improve our ERM

process based on learnings, developments and best

practices.

The results of periodic risk assessments and the

potential impact of external trends and emerging risks

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 all risk events in ASML's risk

universe. We define strategies to address relevant risks

and take these into account when we set our corporate

priorities. Our risk responses aim to mitigate risks to the

level defined by the risk appetite.

Risk management process

Risk assessment			Risk response
Top-down risk assessment			Coordination and follow-up
CESR / Risk owners / Emerging risks			Risk owners
	Risk identification	Risk<br><br>landscape		Risk appetite
	Risk analysis
	Risk evaluation		Risk treatment
Bottom-up risk assessment			Execution
Business			Action owners
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	66
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

How we manage risk (continued)

There are several developments in the context of our strategy that have an impact on the risk categories in our risk universe. The table below shows the key developments and includes examples of our responses:

Development	Risk trend	Risk universe reference		Risk response
Geopolitical tensions		•Geopolitical<br><br>•Competition<br><br>•Supply chain<br><br>disruption<br><br>•Continuity of own<br><br>operation<br><br>•Business model	•Violation of laws and<br><br>regulations<br><br>•Security<br><br>•IP rights<br><br>•Human resource	•Active engagement with authorities and governments<br><br>•Scenario planning<br><br>•Collaborate with peers in global advocacy<br><br>•Optimize industrial footprint<br><br>•Apply for export licenses<br><br>•Comply with applicable regulations
Geopolitical tensions and the strive for technological sovereignty may lead to a decoupled ecosystem. There<br><br>is a risk that future trade restrictions (e.g. raw materials, technology, systems, investments) further limit our<br><br>ability to source parts and/or sell systems to, or service them for, certain customers. With the increasing<br><br>complexity of regulations, ensuring compliance has become more challenging.
Uncertain global economy		•Industry cycle<br><br>•Business model<br><br>•Financial	•Competition<br><br>•Supply chain<br><br>disruption	•Cost control<br><br>•Maintain flexibility<br><br>•Scenario planning
Global economic conditions lead to uncertainty for semiconductor demand and therefore demand for our<br><br>products. We have experienced order push-outs. The macroeconomic weakness continues and its duration<br><br>is uncertain.
Pressure on know-how and intellectual property (IP) protection in ecosystem		•Security<br><br>•Supply chain<br><br>disruption	•Competition<br><br>•IP rights	•Intellectual property portfolio management<br><br>•Patents and relevant technical publications monitoring<br><br>•Substantial investments in security<br><br>•Awareness and training programs<br><br>•Cyber defense capabilities
ASML’s strengths are based on the innovation power in our ecosystem and the ability to protect our IP.<br><br>There is significant pressure on know-how and IP protection for ASML and its open innovation partners.<br><br>We and our partners experience cyber- and other security threats.
Growth challenges		•Manufacturing and<br><br>install<br><br>•Supplier strategy<br><br>and performance<br><br>•Human resource	•Product<br><br>industrialization<br><br>•Process<br><br>effectiveness<br><br>•Product/service<br><br>quality	•Increase of manufacturing and supply chain capabilities<br><br>•Remain flexible in our operating model<br><br>•Drive operational excellence<br><br>•Strengthen ecosystem relationships<br><br>•Create an exceptional workplace<br><br>•Shorten time to knowledge
Although there is uncertainty and volatility in the industry, we expect substantial growth opportunities in this<br><br>decade. That brings challenges. We are continuing to increase production capacity in our end-to-end supply chain<br><br>to meet future demand, but we may still face challenges in increasing capacity. Such challenges can be amplified<br><br>by supply chain constraints. In addition, hiring, onboarding and retaining our workforce in the competitive<br><br>market is a long-term challenge.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	67
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors

Many risks have the potential to impact our business and it is important to understand their nature. We assess risks using the ASML risk universe,

which comprises six risk types (Strategy and products, Finance and reporting, Partners, People, Operations, Legal and compliance).

The risk factors in this section are classified<br><br>under these six risk types.<br><br>Any of these risks and the related events or<br><br>circumstances described therein may have<br><br>a material adverse effect on our business,<br><br>financial condition, results of operations<br><br>and reputation.<br><br>These risks are not the only ones that we face.<br><br>Some risks may not yet be known to us, and<br><br>certain risks that we do not currently believe<br><br>to be material could become material in the<br><br>future.<br><br>Many risks may be intensified by global events,<br><br>such as wars and other conflicts, geopolitical<br><br>tensions, inflation, industry downturn, global<br><br>measures (including new regulations) taken<br><br>in response to these events and/or any adverse<br><br>global business and economic conditions.	1. Strategy and products
	Our future success depends on our ability to respond timely 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
	Risk category:		Risk category:
	Business model, Innovation		Product roadmap execution, Innovation
	Our success in developing new and enhancing existing<br><br>technologies, products and services, depends on a variety of<br><br>factors. These include the success of our and our suppliers’ R&D<br><br>programs and the timely, cost-effective and successful completion<br><br>of product development and design relative to competitors.<br><br>Our business will suffer if the technologies we pursue to assist our<br><br>customers in producing smaller and more energy-efficient chips<br><br>are not as effective as, or are more costly than, those developed<br><br>by competitors. Our business will also suffer if our customers do<br><br>not adopt technologies that we develop, or if they adopt new<br><br>technological architectures that are less focused on lithography<br><br>products. For example, the success of our EUV 0.55 NA (High NA)<br><br>technology, which we believe is critical for keeping pace with<br><br>Moore’s Law, depends on continuing technical advances by us<br><br>and our suppliers.<br><br>We invest considerable financial resources in developing and<br><br>introducing new and enhanced technologies, products and service<br><br>offerings. If we are unsuccessful in developing (or if our customers<br><br>do not adopt) these technologies, products and service offerings,<br><br>such as EUV 0.55 NA and multibeam inspection, or if alternative<br><br>technologies or processes are successfully introduced by others,<br><br>our competitive position and business may suffer, and we may be<br><br>unable to recoup some or all of these investments.	In addition, we may incur impairment charges on capitalized<br><br>technology including prototypes or incur costs related to inventory<br><br>obsolescence, as a result of technological changes. Such charges<br><br>and costs may increase as the complexity of technology increases.<br><br>Also, due to the highly complex nature and costs of our systems,<br><br>including newer technologies, our customers may purchase<br><br>existing technology systems rather than new leading-edge<br><br>systems, or they may delay their investment in new technology<br><br>systems to the extent that such investment is not economical or<br><br>required, given their product cycles.<br><br>Global economic conditions in general and semiconductor market<br><br>conditions specifically affect our customers’ investment decisions<br><br>and lead to uncertainties in the timing around the introduction of<br><br>and demand for new leading-edge systems. This increases the risk<br><br>of slowing down the overall transition period (or cadence) for the<br><br>introduction of new nodes and, therefore, new systems.<br><br>We also depend on our suppliers to maintain their development<br><br>roadmaps to enable us to introduce new technologies in a timely<br><br>manner. Delays by suppliers in keeping pace with their roadmaps,<br><br>whether due to technological factors, lack of financial resources or<br><br>otherwise, impact our ability to meet our development roadmaps.	As our lithography systems and applications have become<br><br>increasingly complex, the cost and time to develop new products<br><br>and technologies have increased, and we expect this trend to<br><br>continue. In particular, developing new technology, such as EUV<br><br>0.55 NA (High NA) and multibeam, requires significant R&D<br><br>investments by us and our suppliers.<br><br>Our suppliers may not be able or willing to invest the resources<br><br>necessary to continue the (co-)development of new technologies<br><br>to the extent that such investments are necessary. This has<br><br>resulted and may result in ASML contributing funds to such R&D<br><br>programs or limiting the R&D investments that we can undertake.<br><br>Furthermore, if our R&D programs are not successful in<br><br>developing the desired new technology on time or at all, we may<br><br>be unsuccessful in introducing new products, services and<br><br>technologies and unable to recoup our R&D investments.<br><br>In case of high levels of customer demand, we may prioritize<br><br>our resources on production over R&D programs.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	68
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

1. Strategy and products (continued)
We face intense competition	The semiconductor industry can be cyclical and we<br><br>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
Risk category:	Risk category:		Risk category:
Competition	Industry cycle risk		Business model
The semiconductor equipment industry is highly competitive.<br><br>Our competitiveness depends on our ability to develop new and<br><br>enhanced lithography equipment, and related applications and<br><br>services that bring value to our customers and are competitively<br><br>priced and introduced on a timely basis – as well as our ability to<br><br>protect and defend our intellectual property, trade secrets or other<br><br>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 could increase price-based competition,<br><br>resulting in lower prices and lower sales and margins.<br><br>We also face competition from new competitors with substantial<br><br>financial resources, as well as from competitors driven by the<br><br>ambition of self-sufficiency in the geopolitical context. Furthermore,<br><br>we face competition from alternative technological solutions or<br><br>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 applications offering, which is a significant part of our<br><br>business.	The semiconductor industry has historically been cyclical. As a<br><br>supplier to the global semiconductor industry, we are subject to the<br><br>industry’s business cycles. The timing, duration and volatility are<br><br>difficult to predict and can have a significant impact on<br><br>semiconductor equipment manufacturers including ASML. Newer<br><br>entrants to the industry, including Chinese semiconductor<br><br>manufacturers, could increase the risk of cyclicality in the future.<br><br>Certain key end-market customers – Logic and Memory – exhibit<br><br>different levels of cyclicality and different business cycles. Cyclicality<br><br>may be worsened by the geopolitical situation – for example, if<br><br>countries 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 are<br><br>influenced by industry cycles, the drive for technological sovereignty<br><br>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 the<br><br>available production capacity of the industry to produce chips, which<br><br>can lead to imbalances in the supply and demand of chips.<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 financial<br><br>models and our capital expenditures and planning for production<br><br>capacity. To the extent that actual results prove to be materially<br><br>different from our assumptions, we may have overcapacity or may<br><br>have allocated capital expenditure and resources to make products<br><br>that are not in demand by customers (at the expense of products<br><br>that are in demand) and our actual results could differ substantially<br><br>from those implied by our financial models.	Capital expenditures by our customers may not continue at current<br><br>levels and may decline. Capital expenditures by some customers<br><br>have declined recently 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. The<br><br>current 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 volatility<br><br>in financial markets could make it more difficult for our customers to<br><br>raise capital, whether debt or equity, to finance their purchases of<br><br>equipment, including the products we sell. The foregoing could lead<br><br>to reduced demand, which may adversely affect our product sales<br><br>and revenues and may harm our business and operating results.<br><br>As we have significantly increased our organization in terms of<br><br>employees, infrastructure, manufacturing capacity and other areas,<br><br>we may not be able to adjust our costs adequately in a timely manner<br><br>in the event of an industry downturn.<br><br>If we are unable to adapt appropriately and in a timely manner to<br><br>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 (418 units in 2024, 449 units in 2023<br><br>and 345 units in 2022). As a result, the timing of shipments and<br><br>recognition of system sales for a particular reporting period, as a<br><br>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 to customers by having some final<br><br>testing and formal acceptance carried out on customer sites<br><br>instead of at our own facilities. This typically leads to a delay of<br><br>revenue recognition for those shipments until formal customer<br><br>acceptance, which can impact comparability of our results of<br><br>operations from period 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, find<br><br>other third-party suppliers to provide them or we may be limited<br><br>by export control restrictions.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	69
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

1. Strategy and products (continued)
Failure to adequately protect intellectual property could harm our business		Defending against intellectual property claims brought by others<br><br>could harm our business
Risk category:		Risk category:
Intellectual property rights		Intellectual property rights
We rely on intellectual property (IP) rights such as patents,<br><br>copyrights and trade secrets to protect our proprietary technology.<br><br>However, we face the risk of such protective measures proving<br><br>inadequate and we could suffer material harm because, among<br><br>other matters:<br><br>1.IP laws may not sufficiently support our proprietary rights or may<br><br>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 be sufficient or may be<br><br>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 technology<br><br>becoming widely available, which may harm our competitive<br><br>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 rights<br><br>may not have reached the same level compared with other<br><br>jurisdictions where we operate.<br><br>7.Third parties may be able to develop or obtain patents for our<br><br>own or for similar competing technology.	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 of<br><br>management resources, and, in the event of decisions unfavorable<br><br>to us in proceedings, could result in significant costs or have<br><br>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 IP rights.<br><br>Our suppliers face similar risks which could have a consequential<br><br>impact on us.	In the course of our business, we have been and may be subject to<br><br>claims by third parties alleging that our products or processes<br><br>infringe upon their IP rights. If successful, such claims could limit or<br><br>prohibit us from developing our technology, and manufacturing and<br><br>selling our products.<br><br>Our customers may also be subject to claims of infringement from<br><br>third parties, including patent holder companies, alleging that our<br><br>products used by such customers in the manufacturing of<br><br>semiconductor products and/or the processes relating to the use of<br><br>our products infringe on one or more patents issued to such third<br><br>parties. If such claims are successful, we could be required to<br><br>indemnify our customers for losses incurred by or damages<br><br>assessed against them as a result of such infringement.	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 period<br><br>of time, giving rise to the potential for substantial costs and<br><br>diverting the attention of key management and technical personnel.<br><br>Potential adverse outcomes from patent litigation may include<br><br>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 costs<br><br>to be paid by us.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	70
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

1. Strategy and products (continued)
We are exposed to economic, geopolitical and other developments<br><br>in our international operations		We may be unable to make desirable acquisitions or to integrate successfully<br><br>any businesses we acquire
Risk category:		Risk category:
Geopolitical		Merger and acquisition
Our business is subject to export control restrictions, sanctions,<br><br>tariffs and, more generally, international trade regulations which<br><br>impact our ability to deliver our systems, technology and services,<br><br>and geopolitical tensions have led, and may lead to, an increase in<br><br>such restrictions and regulations. Our ability to deliver systems and<br><br>services in certain countries such as China has been the subject of<br><br>increased export regulations or policies and continues to be<br><br>impacted by our ability to obtain required licenses and approvals.<br><br>We are required under Dutch and other applicable regulations and<br><br>legislation to obtain licenses for the export of certain technologies.<br><br>As a result of the Dutch regulations, EUV, certain DUV immersion<br><br>and other products are subject to license requirements. The US<br><br>government has also enacted trade measures, including license<br><br>requirements on conducting business with certain Chinese entities,<br><br>restricting our ability to provide certain products and services to<br><br>such entities without a license. The list of Chinese entities<br><br>impacted by export control restrictions has increased over the<br><br>years, with restrictions including export controls on semiconductor<br><br>manufacturing items which impose license requirements on the<br><br>sale/transfer of US origin items as well as on the support by US<br><br>persons on non-US origin items destined for certain fabs in China<br><br>working on advanced node ICs. The list of restricted customers<br><br>and the scope of the restrictions are subject to change and may be<br><br>expanded to include additional entities. ASML is also subject to<br><br>export control regulations in countries outside the EU and US.<br><br>These developments in multilateral and bilateral treaties, national<br><br>regulation, and trade, national security and investment policies and<br><br>practices have affected and may further affect our business, and<br><br>the businesses of our suppliers and customers. For example, the<br><br>ability to obtain US licenses to authorize employees with foreign<br><br>nationalities to work in programs that include controlled US items<br><br>has been reduced over the last couple of years.	Such developments, including the drive for technological<br><br>sovereignty, could also lead to long-term changes in global trade,<br><br>competition and technology supply chains, which could adversely<br><br>affect our business and growth prospects. Customers in China<br><br>represented 36.1% of our 2024 total net sales. Countries impacted<br><br>by export control restriction can also introduce measures to<br><br>counteract the impact of other countries, actions or regulations,<br><br>which may result in conflicting regulations and legal liabilities.<br><br>The semiconductor industry makes use of (raw) materials that are<br><br>controlled by certain countries. In the current geopolitical context,<br><br>we see an increasing risk that these materials may become<br><br>unavailable or restricted, which could impact our suppliers, our<br><br>customers and ASML.<br><br>Interstate conflicts and/or nationalization of ASML assets can also<br><br>impact our business. For example, some of our facilities and supply<br><br>chain and customers are located in Taiwan. Customers in Taiwan<br><br>represented 15.4% of our 2024 total net sales and 29.3% of our<br><br>2023 total net sales. Taiwan has a unique international political<br><br>status. Changes in relations between Taiwan and China, Taiwanese<br><br>government policies and other factors affecting Taiwan’s political,<br><br>economic or social environment could, for example, impact our<br><br>ability to service our customers in Taiwan. Furthermore, some of<br><br>our facilities as well as our supply chain and customers are located<br><br>in South Korea. Customers in South Korea represented 22.7% of<br><br>our 2024 total net sales and 25.2% of our 2023 total net sales. In<br><br>addition, there are tensions between South Korea and North Korea.<br><br>A worsening of relations between those countries or the outbreak of<br><br>war on the Korean Peninsula could impact our ability to service<br><br>customers. A small percentage of our suppliers and customers as<br><br>well as a customer support organization are based in Israel. The<br><br>tensions in this region have resulted and may continue to result in<br><br>violence and/or the outbreak of war, which could impact our<br><br>business.	From time to time, we may acquire businesses or technologies to<br><br>complement, enhance or expand our current business or products<br><br>or to seize growth opportunities. Any such acquisitions could fail to<br><br>achieve our financial or strategic objectives or impact our ability to<br><br>perform as we plan, or disrupt our ongoing business and adversely<br><br>impact our results of operations. Our ability to complete any such<br><br>transactions may be hindered by a number of factors, including<br><br>potential difficulties in obtaining government approvals.<br><br>Any acquisition could pose risks related to the integration of the<br><br>new business or technology with our existing business and<br><br>organization. We may not be able to achieve the benefits we expect<br><br>from an acquisition. Acquisitions may also strain our managerial<br><br>and operational resources and the challenge of managing new<br><br>operations may divert our management from day-to-day<br><br>operations. Furthermore, we may be unable to retain key personnel<br><br>from acquired businesses or we may have difficulty integrating<br><br>employees, business systems and technology. The controls,<br><br>processes and procedures of acquired businesses also may not<br><br>adequately ensure compliance with laws and regulations, and we<br><br>may fail to identify compliance issues or liabilities.	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, which<br><br>could inhibit future desired acquisitions.<br><br>As a result of acquisitions, we have recorded a significant amount<br><br>of goodwill and a number of intangible assets. Accounting<br><br>standards require periodic review of these assets for indicators of<br><br>impairment. If one or more indicators of impairment are found to<br><br>exist, then valuation of the related asset could change and may<br><br>incur impairment charges.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	71
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

1. Strategy and products (continued)
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
Risk category:
ESG expectations, Product stewardship
Companies across all industries are facing increasing scrutiny of<br><br>their ESG policies and practices. Investors, capital providers,<br><br>shareholder advocacy groups, market participants, customers and<br><br>other stakeholders are increasingly focused on ESG practices and<br><br>ESG matters. In particular, within the semiconductor industry, there<br><br>is a focus on contribution to society and minimizing environmental<br><br>and social impacts of products throughout all life-cycle stages.<br><br>Some stakeholders, however, may disagree with our ESG goals<br><br>and initiatives, and their focus may evolve over time. Stakeholders,<br><br>including regulators or governments in the various jurisdictions in<br><br>which we operate, may also have conflicting views on ESG<br><br>practices. Failure to achieve our ESG objectives, meet the<br><br>emerging or conflicting ESG expectations of our stakeholders and/<br><br>or respond in a timely way to changing or conflicting regulations,<br><br>laws and reporting and disclosure obligations could negatively<br><br>affect our brand and reputation and impede our ability to recruit or<br><br>retain employees, and may ultimately adversely affect our<br><br>operations. In addition, laws, regulations and standards for<br><br>calculating and disclosing emissions and other sustainability<br><br>metrics continue to evolve, which can result in inconsistencies or<br><br>other changes to data over time, revisions to our strategies and<br><br>targets, or our ability to achieve them, subjecting us to additional<br><br>scrutiny.	Climate change contributes to increasing severity and frequency<br><br>of extreme weather events, rising sea levels and droughts, which<br><br>can impact continuity of our operations and/or our supply chain.<br><br>Climate change concerns and the potential environmental impacts<br><br>of climate change have resulted, and may result, in new laws and<br><br>regulations that affect us, our suppliers and our customers. Such<br><br>laws or regulations could cause us to incur additional direct costs<br><br>for compliance, as well as increased indirect costs from our value<br><br>chain. Furthermore, the ability to improve our product-related<br><br>environmental performance (such as energy efficiency) may be<br><br>affected by the complexity of our technology and products. In order<br><br>to meet our ESG goals and requirements, we are dependent on our<br><br>suppliers and their ability to reduce their ecological footprints, and<br><br>we may be unable to meet our ESG goals if our suppliers do not<br><br>meet our expectations in this regard. In addition, we are dependent<br><br>on our customers and/or our customers may not be satisfied with<br><br>our progress, which could impact demand.	A global trend of transitioning to a lower-carbon economy has<br><br>resulted in increased regulations that could lead to technology<br><br>restrictions, modification of product designs, an increase in energy<br><br>prices and energy or carbon taxes, restrictions on pollution,<br><br>remediation measures, or other requirements that could impact our<br><br>business and increase our costs. A variety of regulatory<br><br>developments have been introduced that focus on restricting or<br><br>managing carbon and greenhouse gas (GHG) emissions. This could<br><br>result in a need to redesign products and/or to purchase at higher<br><br>costs new equipment or materials with lower carbon footprints.<br><br>We publish disclosures on ESG matters relating to our business<br><br>and our partners as required by applicable regulations and<br><br>guidance and other data which may not be required but which we<br><br>nonetheless elect to disclose.	Such disclosures include our ESG goals, expectations and<br><br>assumptions and related statements, including targets,<br><br>commitments, goals, plans, expectations and forecasts about<br><br>future circumstances, which may prove to be incorrect or which we<br><br>may not meet. In addition, our ESG sustainability strategy may not<br><br>deliver the intended results, and our estimates concerning<br><br>feasibility, timing and cost of meeting stated goals are subject to<br><br>risks and uncertainties. In addition, we may use offsets to help us<br><br>meet some of our emissions targets. We have not undertaken any<br><br>commitment to purchase offsets, and we do not intend to use<br><br>offsets in connection with our scope 3 emissions goals. As a result,<br><br>we may not meet our goals on expected timing or at all.<br><br>ESG disclosure requirements are increasing and authorities have<br><br>proposed disclosure requirements on ESG matters which differ<br><br>from the requirements that we are currently subject to. We face<br><br>risks in complying with such regulations, including the risk of<br><br>complying with requirements in different jurisdictions, the costs<br><br>associated with such compliance and the risk that our ESG<br><br>disclosures prove incorrect.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	72
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

2. Finance and reporting
We are exposed to financial risks including liquidity risk, interest rate risk, counterparty credit risk,<br><br>foreign exchange risk and inflation risk
Risk category:
Financial
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 for<br><br>use elsewhere due to legal restrictions or required formalities.<br><br>Currency risk<br><br>Our Financial statements are expressed in euros. Accordingly, our<br><br>results of operations are exposed to fluctuations in exchange rates<br><br>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 and the euro, and to a lesser extent to the<br><br>Japanese yen, the South Korean won, the Taiwanese dollar and the<br><br>Chinese yuan, in relation to the euro. We incur costs of sales<br><br>predominantly in euros, with portions also denominated in US and<br><br>Taiwanese dollars. A small portion of our operating results are<br><br>driven by movements in currencies other than the euro, US dollar,<br><br>Japanese yen, South Korean won, Taiwanese dollar or Chinese<br><br>yuan.<br><br>Inflation risk<br><br>We are exposed to increases in costs due to inflation for costs of<br><br>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 in<br><br>our prices.	Interest rate risk	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 rate<br><br>and impact our net income.
	Our Eurobonds bear interest at fixed rates. Our cash, investments, Euro Commercial Paper program and credit facilities bear interest at a floating rate. Failure to effectively hedge this risk could impact our financial condition and results of operation. In addition, we could experience an increase in borrowing costs due to a ratings downgrade (or the expectation of a downgrade), developments in capital and lending markets or developments in our businesses.
	Counterparty credit risk
	We are exposed to credit risk, particularly with respect to (financial) counterparties with whom we hold our cash and investments as well as our customers. As a result of our limited number of customers, counterparty credit risk on our receivables is concentrated. Our three largest customers (based on total net sales) accounted for 2,641.9 million, or 54.1% of accounts receivable and finance receivables, at December 31, 2024, compared with 3,718.8 million, or 64.4%, at December 31, 2023. Accordingly, business failure or insolvency of one of our main customers could result in significant credit losses.

All values are in Euros.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	73
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

3. Partners
Our success is highly dependent on the performance of a limited number of critical suppliers<br><br>of single-source key components
Risk category:
Supply chain disruption, Supplier strategy and performance
We rely on third-party vendors for components and subassemblies<br><br>used in our systems, including the design thereof. These<br><br>components and subassemblies are obtained from a single<br><br>supplier or a limited number of suppliers. As our business has<br><br>grown, our dependence on single suppliers or a limited number of<br><br>suppliers has grown. The highly specialized nature of many of our<br><br>components, particularly for EUV systems, means it is not<br><br>economical to source from more than one supplier. In many cases,<br><br>our sourcing strategy prescribes ‘single sourcing, dual<br><br>competence’. Our reliance on a limited group of suppliers involves<br><br>several risks, including a potential inability to obtain an adequate<br><br>supply of required components or subassemblies in time and at<br><br>acceptable costs, and reduced control over pricing and quality.<br><br>Delays in supply of these components and subassemblies could<br><br>occur due to disruptions experienced by our suppliers for reasons<br><br>including work stoppages, fire, energy shortages and access<br><br>issues, pandemic outbreaks, flooding, cyberattacks, blockades,<br><br>sabotage or other disasters, natural or otherwise. This could lead<br><br>to delays in delivery of parts, components or subassemblies and<br><br>therefore delays in delivery of our products to customers, which<br><br>could impact our business. For example, some of our suppliers<br><br>have experienced disruptions in their operations as a result of<br><br>material shortages and cyberattacks. Consistent delays or<br><br>prolonged inability to obtain adequate deliveries of components or<br><br>subassemblies, or any other circumstance that requires us to seek<br><br>alternative sources of supply, could significantly hinder our ability<br><br>to deliver our products in a timely manner. This could damage<br><br>relationships with our customers and materially impact our<br><br>business.	The number of lithography systems we are able to produce is<br><br>limited by the production capacity of one of our key suppliers, Carl<br><br>Zeiss SMT, our sole supplier of lenses, mirrors, illuminators,<br><br>collectors and other critical optical components (which we refer to<br><br>as optics). We have an exclusive arrangement with Carl Zeiss SMT.<br><br>If this supplier became unable to maintain and increase production<br><br>levels, we could be unable to fulfill orders. This could have a<br><br>material impact on our business and damage relationships with our<br><br>customers. Furthermore, if Carl Zeiss SMT were to terminate its<br><br>supply relationship with us or be unable to maintain production of<br><br>optics over a prolonged period, we would effectively cease to be<br><br>able to conduct our business.<br><br>From time to time, we experience supply constraints which can<br><br>impact our production. We and our suppliers have and are<br><br>continuing to invest in additional capacity to increase our<br><br>production capacity. However, we may be unable to meet the full<br><br>demand of our customers. We also face the risk that demand may<br><br>decrease or may not be sufficient for full utilization of our increased<br><br>production capacity, which could result in overcapacity in our and<br><br>our suppliers’ operations and consequently higher costs and loss of<br><br>investment in increasing capacity. In addition, most of our key<br><br>suppliers, including Carl Zeiss SMT, have a limited number of<br><br>manufacturing facilities, the disruption of which may significantly<br><br>and adversely affect our production capacity.	Lead times in obtaining components have increased as our<br><br>products have become more complex. A failure by us to adequately<br><br>predict demand for our systems, or any delays in the shipment of<br><br>components, can result in insufficient supply of components. This<br><br>could lead to delays in delivery of our systems and could limit our<br><br>ability to react quickly to changing market conditions. Conversely, a<br><br>failure to predict demand could lead to excess supply of<br><br>components and obsolete inventory.	We are also dependent on suppliers to develop new models and<br><br>products to meet our development roadmaps. If our suppliers do<br><br>not meet our requirements or timetable in product development,<br><br>our business could suffer.<br><br>We have historically shipped our systems by airplane, but have<br><br>recently started to ship some systems by ocean freight. We face<br><br>risks in connection with using alternative means of transportation<br><br>(for example delays, defects, damages).
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	74
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

3. Partners (continued)	4. People
A high percentage of net sales is derived from<br><br>a few customers	Our business and future success depend on our ability to manage the growth of our organization and attract and retain a sufficient number of adequately<br><br>educated and skilled employees
Risk category:	Risk category:
Customer dependency	Human resources, Knowledge management, Organizational effectiveness
We sell our lithography systems to a limited number of customers,<br><br>and therefore the loss of any customer could have a significant<br><br>impact on our business. Customer concentration, and the risks<br><br>associated with a limited number of customers, can increase<br><br>because of continuing consolidation in the semiconductor<br><br>manufacturing industry. In addition, although the applications part<br><br>of our holistic lithography solutions constitutes an increasing<br><br>portion of our revenue, a significant portion of those customers are<br><br>the same customers as those for our systems. Consequently, while<br><br>the order of our largest customers may vary from year to year,<br><br>sales generally remain concentrated among relatively few<br><br>customers in any particular year.<br><br>Total net sales to our largest customer amounted to €4,682.4<br><br>million, or 16.6% of total net sales in 2024, compared with<br><br>€8,772.9 million, or 31.8% of total net sales in 2023. In 2024,<br><br>30.5% of total net sales were made to our two largest customers.<br><br>The loss of any significant customer or any significant reduction or<br><br>delay in orders by such a customer may have a material adverse<br><br>effect on our business, financial condition and results of<br><br>operations.	Our business depends significantly on our ability to attract and retain<br><br>employees in the long term, including a large number of highly<br><br>qualified professionals. Competition for talent is intense. Continuing<br><br>to attract sufficient numbers of qualified employees to meet our<br><br>long-term growing needs remains a challenge. Our business has<br><br>grown significantly and the risk of not being able to attract, onboard<br><br>and retain sufficient numbers of qualified personnel increases as our<br><br>business grows.<br><br>Our R&D programs require a large number of qualified employees.<br><br>If we are unable to attract sufficient numbers of such employees, this<br><br>could affect our ability to conduct R&D effectively and on a timely<br><br>basis.	As a result of the uniqueness and complexity of our technology,<br><br>qualified engineers capable of working on our systems are scarce<br><br>and generally not available from other industries or companies.<br><br>We invest a significant amount in educating and training our<br><br>employees to work on our systems, and their retention is a critical<br><br>success factor for us.<br><br>The increasing complexity of our products results in a longer<br><br>learning curve for new and existing employees. Our suppliers face<br><br>similar risks in attracting and retaining qualified employees, including<br><br>those in connection with programs that will support our R&D<br><br>programs and technology developments. If our suppliers are unable<br><br>to attract and retain qualified employees, this could impact their<br><br>technology roadmaps and therefore our R&D programs or delivery of<br><br>components to us.	Our organization has grown significantly in recent years. Our rapid<br><br>growth driven by strong customer demand has put pressure on our<br><br>organization and we face challenges in effectively managing,<br><br>monitoring and controlling our employees, facilities, operations and<br><br>other resources and complying with applicable laws and<br><br>regulations. If we are not able to successfully deal with such<br><br>challenges, this may negatively impact our operations and our<br><br>reputation as an employer.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	75
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

5. Operations
We may face challenges in managing the industrialization of our products and bringing them<br><br>to high-volume production		We are dependent on the continued operation of a limited number<br><br>of manufacturing facilities
Risk category:		Risk category:
Product industrialization		Continuity of own operations
Bringing new products to high-volume production at a value-based<br><br>price and in a cost-effective manner depends on our ability to<br><br>manage the industrialization of our products and to manage costs.<br><br>Customer adoption of new products depends on the performance<br><br>of our products in the field. As our products become more<br><br>complex, we face an increasing risk that products may not meet<br><br>development milestones or specifications and may not perform<br><br>according to specifications, including quality standards. If our<br><br>products do not perform according to specifications and<br><br>performance criteria such as customers’ planned wafer capacity, or<br><br>if quality or performance issues arise, this may result in reduced<br><br>demand for our products and additional costs.<br><br>Transitioning newly developed products to full-scale production<br><br>requires the expansion of infrastructure, including enhancing<br><br>manufacturing capabilities, increasing the supply of components<br><br>and training qualified personnel. It may also require our suppliers to<br><br>adjust or expand their infrastructure capabilities. If we or our<br><br>suppliers are unable to adjust or expand infrastructure as<br><br>necessary, we may be unable to introduce new technologies,<br><br>products or product enhancements, or to reach high-volume<br><br>production of newly developed products on a timely basis or at all.	When we are successful in industrializing new products, it can take<br><br>years to reach profitable margins. New technologies might not have<br><br>the same margins as existing technologies, and we might not be<br><br>able to adjust value-based pricing and/or cost in an effective<br><br>manner. In addition, the introduction of new technologies, products<br><br>or product enhancements also impacts ASML’s liquidity. New<br><br>products may have higher cycle times, resulting in increased<br><br>working capital needs. As our products become more complex, the<br><br>investments needed before new product introduction and the timing<br><br>of revenue recognition of these products may have a significant<br><br>negative effect on our cost structure and margins.<br><br>The capability, capacity and costs associated with providing the<br><br>required customer support to cover the increasing number of<br><br>shipments and service a growing number of EUV systems that are<br><br>operational in the field could affect the timing of shipments. It could<br><br>also impact the efficient execution of maintenance, servicing and<br><br>upgrades, which are key to our systems continuing to achieve the<br><br>required productivity.	All of our manufacturing activities, including subassembly, final<br><br>assembly and system testing, take place in (cleanroom) facilities in<br><br>Veldhoven, Eindhoven, Oirschot (the Netherlands), Berlin<br><br>(Germany), Wilton, San Diego (US), Pyeongtaek (South Korea) and<br><br>Linkou and Tainan (Taiwan). These facilities may be subject to<br><br>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.	We are not able to or otherwise may not fully insure our risk<br><br>exposure, and not all disasters, other potential disruptions and<br><br>risks are insurable. As a result, we may be subject to the financial<br><br>impact of uninsured losses, which could have an adverse impact<br><br>on our financial condition and results of operations.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	76
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

5. Operations (continued)
We face challenges to meet expected demand		Our operations expose us to health, safety and<br><br>environment risks
Risk category:		Risk category:
Manufacturing and install, Human resources, Supplier strategy and performance		Environment, health and safety
We are continuing to increase production capacity in our end-to-<br><br>end supply chain to meet expected demand, but we face<br><br>challenges in increasing capacity. For example, we depend on our<br><br>suppliers increasing their capacity and their ability to invest, and it<br><br>takes time to build the production space and equipment required<br><br>for expansion. We and our supply chain also need to obtain<br><br>permits to make expansion possible, and the time it takes for these<br><br>to be granted may cause delays.	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 expected demand, this could impact our<br><br>relationships 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,<br><br>including risks relating to system quality, the risk that we have not<br><br>accurately predicted demand, and risks associated with maintaining<br><br>a much larger production infrastructure and supplier ecosystem,<br><br>including 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<br><br>in capacity that exceeds demand (overcapacity).	Hazardous substances are used in the production and operation of<br><br>our products and systems. Their use subjects us to a variety of<br><br>governmental regulations relating to environmental protection and<br><br>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>Failure to comply with regulations could result in harm to people<br><br>and the environment. Substantial fines could be imposed on us,<br><br>as well as suspension of production, alteration of our manufacturing<br><br>and assembly and test processes, damage to our reputation and/or<br><br>restrictions on our operations or sales, or other adverse<br><br>consequences.	Additionally, our products have become increasingly complex. This<br><br>requires us to invest in ongoing risk assessments and development<br><br>of appropriate preventative and protective measures for health and<br><br>safety for both our employees (in connection with the production<br><br>and installation of our systems and field options and performance<br><br>of our services) and our customers’ employees (in connection with<br><br>the operation of our systems). Our health and safety practices may<br><br>not be effective in mitigating all health and safety risks. A failure to<br><br>comply with applicable regulations, or the failure of our<br><br>implemented practices to ensure customer and employee health<br><br>and safety, could expose us to significant liabilities.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	77
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

5. Operations (continued)
Cybersecurity and other security incidents, or disruptions in our processes or information technology<br><br>systems, could materially adversely affect our business operations
Risk category:
Security, Information technology, Process effectiveness and efficiency
We rely on the accuracy, availability and security of our information<br><br>technology (IT) systems. Despite the measures that we have<br><br>implemented, including those related to cybersecurity, our systems<br><br>could be breached or damaged by malware and systems attacks,<br><br>natural or man-made incidents, disasters, or unauthorized physical<br><br>or electronic access. We have experienced some of these incidents<br><br>in the past.<br><br>We experience an increasing number of cyberattacks on our IT<br><br>systems as well as the IT systems of our customers and suppliers<br><br>and other service providers, which systems we do not control.<br><br>These attacks include malicious software (malware), attempts and<br><br>acts to gain unauthorized access to data, and other electronic and<br><br>physical security breaches of our IT systems, as well as the IT<br><br>systems of our customers and suppliers and other service<br><br>providers that have led and could lead to disruptions in critical<br><br>systems, unauthorized release, misappropriation, corruption, or<br><br>loss of data or confidential information (including confidential<br><br>information relating to our customers, employees and suppliers).<br><br>As technology like AI and quantum computing continues to evolve,<br><br>these technologies could also be used for sophisticated cyber<br><br>attempts or bypassing security measures.	We depend on our employees and the employees of our suppliers<br><br>to appropriately handle confidential and sensitive data and deploy<br><br>our IT resources in a safe and secure manner. Inadvertent<br><br>disclosure, actions or malfeasance by our employees, those of our<br><br>suppliers or other third parties have resulted and may in the future<br><br>result in a loss or misappropriation of data or a breach or<br><br>interruption of our IT systems. This could result in competitive harm<br><br>or violate export controls and other laws and regulations, which<br><br>could result in fines and penalties, business disruption, reputational<br><br>harm and additional regulatory scrutiny or export control measures.<br><br>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>personnel, 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.	Furthermore, malware may harm our systems and software and<br><br>could be inadvertently transmitted to our customers’ systems and<br><br>operations. This could result in loss of customers, litigation,<br><br>regulatory investigation and proceedings that could expose us to<br><br>civil or criminal liabilities and diversion of significant management<br><br>attention and resources. We may also incur significant costs to<br><br>protect against or repair the damage caused by these disruptions or<br><br>security breaches, including, for example, rebuilding internal<br><br>systems, implementing additional threat protection measures,<br><br>providing modifications to our products and services, defending<br><br>against litigation, responding to regulatory inquiries or actions,<br><br>paying damages or taking other remedial steps with respect to third<br><br>parties. Further, remediation efforts may not be successful and<br><br>could result in interruptions, delays or cessation of service,<br><br>unfavorable publicity, damage to our reputation, customer<br><br>complaints, possible litigation and loss of existing or potential<br><br>customers, which may impede our sales or other critical functions.<br><br>Cybersecurity threats are constantly evolving. We remain potentially<br><br>vulnerable to additional known or as yet unknown threats, as in<br><br>some instances, we and our customers, partners and suppliers may<br><br>be unaware of an incident or its magnitude and effects.	We also face the risk that we could unintentionally expose our<br><br>customers to cybersecurity attacks through the systems we deliver<br><br>to them, including in the form of malware or other types of attacks,<br><br>which could harm our customers.<br><br>ASML’s visibility and importance for the semiconductor industry<br><br>continues to increase, which may lead to increased risks of ASML<br><br>or its employees being targeted in a cybersecurity attack.<br><br>In addition, processes and systems may not be able to adequately<br><br>support the growth that we have experienced in recent years and<br><br>continue to experience. 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 and<br><br>integrate IT systems as planned without disruption to our<br><br>operations – for example, our ERP migration. We may not be<br><br>successful in our AI initiatives and using AI could lead to<br><br>unintended outcomes.
			Read more in Strategic report – Performance and risk – Risk –<br><br>How we manage risk and Strategic report – Corporate conduct
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	78
---	---	---	---	---	---
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Risk factors (continued)

6. Legal and compliance		7. Other risk factors
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<br><br>share buyback programs or cancel shares at all or<br><br>in any particular amounts in any given year
Risk category:
Violation of laws and regulations
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, reporting,<br><br>product compliance, anti-corruption, antitrust, ESG, human rights,<br><br>data protection, AI technologies, spatial planning, environmental<br><br>matters, securities laws and stock exchange rules. With the<br><br>significant growth of our business in recent years, ensuring<br><br>compliance with laws and regulations and our internal policies<br><br>across our continually expanding organization has become more<br><br>challenging. We face the risk that, despite our significant efforts<br><br>and proactive approach to compliance, we may fail to comply with<br><br>such laws, regulations or policies.<br><br>We operate in a significant and growing number of countries in the<br><br>world, and we are therefore subject to numerous and differing, and<br><br>sometimes conflicting, regulatory frameworks, which can impact<br><br>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 of<br><br>our products and services to certain customers is subject to<br><br>restrictions and requires government authorization, which can lead<br><br>to delays in or a prohibition on shipments of products to certain<br><br>customers.	Laws and regulations that impact our business are regularly<br><br>amended and we are subject to new laws and regulations. We are<br><br>also subject to the changing interpretations by and positioning of<br><br>regulators, including in the granting of required licenses to ship<br><br>products as well as in investigations and enforcement. Additional or<br><br>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 further limit our ability to sell our products<br><br>and services in certain jurisdictions.<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 be<br><br>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. The<br><br>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<br><br>Supervisory Board (SB). As a result, holders of ordinary shares may<br><br>have more difficulty in protecting their interests in the face of<br><br>actions by members of the SB than if we were not subject to the<br><br>‘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 a<br><br>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, amount of share buybacks<br><br>and cancellation of shares in any given year are subject to, among<br><br>other factors, the availability of distributable profits, retained<br><br>earnings and cash, the BoM's views on our potential future liquidity<br><br>requirements, including for investments in production capacity and<br><br>working capital requirements, the funding of our R&D programs<br><br>and acquisition opportunities that may arise from time to time, and<br><br>future changes in applicable tax and corporate laws.<br><br>The BoM may decide not to pay a dividend or to pay a lower<br><br>dividend than is contemplated by our aim or dividend policy.<br><br>In addition, we may suspend, adjust the amount of or discontinue<br><br>share buyback programs, we may not enter into new share<br><br>buyback programs, and we may otherwise fail to complete<br><br>buyback programs.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	79
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Corporate conduct

80	Corporate conduct at ASML
81	Respecting human rights
85	Our approach to tax
87	Competition law compliance
88	Information security
90	Privacy and personal data protection
91	Export controls and sanctions
92	Intellectual property protection
93	Product safety

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	80
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Corporate conduct at ASML

At ASML, we are committed to

ethical corporate conduct,

emphasizing human rights,

compliance, transparency,

information security and

sustainable practices in all

operations.

We respect human rights by promoting a

diverse and inclusive workplace, ensuring

fair labor practices, and adhering to ethical

standards throughout our supply chain.

We actively engage in initiatives that support

employee well-being and community

development, fostering a culture of respect.

We rely heavily on the skills, commitment

and behavior of employees across our

organization. It is only through their actions

that we can build the trust and respect we

need to make our sustainability transition a

success and make a positive contribution to

society.

Our approach to tax reflects our dedication

to transparency and ethical practices,

ensuring that our financial dealings reflect

our values. Our strict adherence to

competition laws promotes fair market

practices, fostering a level playing field for all

stakeholders.

Information security is a top priority – due to

the growth of both our company and

geopolitical tensions, ASML is increasingly

targeted by threat actors. Moreover, as we

grow, so too does the complexity of our

products, supply chain and global footprint.

We therefore seek to invest in robust

security protocols and ensure all our

operations comply with the most stringent

safety regulations. We emphasize the

importance of privacy and the protection of

personal data for our employees, customers,

and partners.

Furthermore, we comply with export controls

and sanctions to protect our operations and

uphold our reputation in the global market.

Intellectual property protection is essential to

our innovation strategy, allowing us to

safeguard our technological advancements

and maintain a competitive edge.

Product safety is also a critical focus, as we

strive to ensure that our technologies meet

the highest industry standards.

By embedding these principles into our

corporate conduct, we aim to build trust with

our stakeholders and fulfill our

responsibilities to society and the

environment. Our commitment to ethical

practices not only enhances our reputation

but also contributes to sustainable

development and positive societal impact.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	81
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Respecting human rights

Respecting universal human rights

is both an organizational and an

individual responsibility – from the

boardroom to the factory floor.

We remain passionately committed to

respecting fundamental human rights and

have sought to enshrine the basic Human

Rights due diligence principles applying to

businesses via our Code of Conduct, our

Human Rights Policy and the RBA Code of

Conduct. Through these codes and policies,

we actively support the principles laid down

in international instruments such as the UN

Guiding Principles on Business and Human

Rights (UNGPs), the OECD Guidelines for

Multinational Enterprises on Responsible

Business Conduct (OECD Guidelines) and

the International Labor Organization (ILO)

core conventions.

In the area of ESG sustainability, companies

are experiencing an important paradigm

shift, not only in relation to new disclosure

requirements but also in terms of developing

an understanding of what it means in

practice to respect the environment and

human rights.

In addition to embracing many other

regulatory developments regarding climate

and the environment, we implemented the

German Supply Chain Due Diligence Act as

of January 1, 2024, for our German

operations in scope and are already

preparing for the implementation of the EU

Corporate Sustainability Due Diligence

Directive (CSDDD), which was approved by

the Member States in May 2024. We will

continue to monitor (legislative)

developments in this area.

How we manage human rights

To both support and help drive our human

rights program, we are taking steps to

deliver on our ESG sustainability framework,

which encompasses themes such as

Responsible value chain and Attractive

workplace for all. These themes inspire

multiple agendas across our value chain as

well as our own internal human rights

program, several diversity and inclusion

initiatives and employee well-being

programs. Alongside efforts to further

embed integrity across our culture, these

initiatives are designed to contribute to the

advocacy and promotion of human rights

within our own operations and across our

value chain.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	82
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Respecting human rights (continued)

Program governance

The human rights program is driven

by the Human Rights Committee, which

is chaired by the Head of Ethics & Business

Integrity and Human Rights, a team within

the Legal & Compliance department.

The Committee consists of representatives

from various departments within our

company, namely Legal & Compliance,

Strategic Sourcing & Procurement, ESG

Sustainability, ESG Reporting and Human

Resources (HR). The Committee members

liaise with other functions across the

organization on an ad hoc basis. The

Committee acts in the first instance as a

task force, driving the implementation of the

human rights program. It also explores and

reviews response measures to human rights

impacts, and coordinates human

rights related issues.

Human rights is one of the risk areas

overseen by the Compliance, Ethics,

Security and Risk Committee (CESR).

The CESR meets regularly and is chaired

by the CFO. The CESR sub-committee

(CESR Ethics Committee), which is

facilitated by the Head of Ethics & Business

Integrity and Human Rights and chaired

by the Chief Legal Officer, oversees the

investigation of ethics cases and reports

into the CESR.

Read more in Sustainability statements –

Governance – ESG integrated governance -

Business ethics and Code of Conduct

Various teams collaborate to develop human

rights and related policies for our

employees, as well as developing program

initiatives and leading due diligence

programs, including third-party Responsible

Business Alliance audits.

Certain human rights topics, such as privacy

and EHS, are managed by various expert

teams. Diversity and inclusion is managed

within the Human Resources department,

along with several other labor and

employment topics having relevance to

human rights such as equality, training and

development. Other topics are managed

across the business, such as forced labor

(including bonded or indentured labor) – a

broad, overarching topic requiring input from

many perspectives such as Human

Resources, Strategic Sourcing &

Procurement, Legal & Compliance, Export

Control, and Tax and Customs.

The Investor Relations team, the Legal &

Compliance department and the ESG

Sustainability team communicate global

legislative developments and stakeholder

expectations, including those of investors,

across the organization.

Employee communication takes place via

multiple channels and platforms. In addition

to formal means of worker representation

such as works councils and trade union

representation, a global Employee Relations

function has been established to provide

additional support in addressing employee

needs and concerns regarding HR-related

topics. Employee feedback is obtained via

numerous means including surveys. Various

employee platforms and processes enable

employee groups to express their needs and

provide input and feedback.

Read more in Sustainability statements – Social –

Attractive workplace for all - How we're managing –

Process for engaging and Sustainability statements

– Governance – ESG integrated governance -

Business ethics and Code of Conduct

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 for our

own employees, on-site external workers,

workers across our value chain and people

in affected communities.

Read more in Sustainability statements –

Governance – ESG integrated governance -

Business ethics and Code of Conduct

Continuously evolving our approach to human

rights

2024 saw the substantial development of

our human rights program. Following the

completion of our Saliency Assessment,

which you can read more about on the

following page, we carried out a

management gap analysis to identify areas

where we need to focus on building capacity

to strengthen our program. In order to

validate the results of our Saliency

Assessment, we also conducted an external

stakeholder engagement with more than 20

organizations representing the interests of

rights holders in our supply chain and

downstream value chain, including NGOs,

civil society organizations, trade union

federations, investors, suppliers and

customers.

In 2023, ASML became a member of the

United Nations Global Compact (UNGC) and

we submitted our first Communication on

Progress in July 2024. As part of our Human

Rights roadmap for the coming years, we

established a number of distinct programs

aimed at further prioritizing our supply chain,

enhancing our human rights due diligence

program and developing a systematic

approach to supply chain due diligence.

Read more in Sustainability statements – Social –

Responsible value chain

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	83
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Respecting human rights (continued)

Human Rights Saliency Assessment

A Human Rights Saliency Assessment forms

an integral part of human rights due

diligence, focusing on potential human rights

impacts. This type of assessment helps

companies identify where to prioritize and

focus their resources.

In 2023-2024 we conducted a Saliency

Assessment to identify the most salient

potential negative impacts on our

employees, workers across our value chain

and affected communities. This Saliency

Assessment allows us to prioritize potential

negative impacts based on:

•severity (i.e. the scope, scale and

irremediability of impacts)

•the likelihood of harm

In determining appropriate preventative and

mitigating measures, we consider the nature

of our involvement (i.e. whether we caused

or contributed to the impact) as well as the

extent to which we can effect change in the

wrongful practices of another party that is

causing or contributing to the negative impact.

Not all salient negative impacts to people

(employees, workers across our value chain

and affected communities) result in risks to

our company. The purpose of the Saliency

Assessment is to help us prioritize our

prevention and mitigation initiatives towards

the identified potential risks towards people.

The outcomes of our Saliency Assessment

will be reflected in the next update of our

double materiality assessment. Through

harmonization of prioritization criteria

between saliency and impact materiality,

salient issues can be integrated in our

double materiality assessment. In addition,

double materiality includes topics reflecting

environmental impacts, risks and

opportunities to ASML.

Saliency Assessment – Own operations

The most salient potential negative impacts

with regard to all groups of workers we

identified are as explained below. For those

impacts identified as salient, we have

various existing programs and controls in

place, are further enhancing these and are

developing our approaches to mitigation.

•Risk of unequal treatment and harassment:

Although we have several measures in

place to mitigate this risk within the

company, the risk of unequal treatment

and harassment remains, as we operate

globally with a diverse population.

•Risk of excessive working hours: We have

strict policies in place regarding maximum

working hours, but commercial and

operational urgencies can nevertheless

create a risk of excessive working hours.

•Risks linked to occupational health and

safety: While we consider this risk well

managed, the impact can be severe and all

workers can be impacted.

We also assessed the rights of vulnerable

groups across our own operations and

identified additional salient potential

negative impacts. To address the rights and

needs of these vulnerable groups, we

developed and enhanced a number of

programs, introduced controls and

established improvement targets.

•On-site external workers: Bonded or

indentured labor; social security, living

wage; access to grievance mechanism

and freedom of expression.

In alignment with Responsible Business

Alliance (RBA) guidance on the prohibition of

forced labor, we have implemented

additional controls to prevent the payment of

improper recruitment fees (to seek and

retain employment) by workers, especially

migrant workers, to or through labor agents.

•Women: Unequal pay (gender pay gap);

enhanced risk of harassment and unequal

treatment.

Our global employee network for women

provides women with an opportunity to

share and raise common issues, including

salient topics of inequality and harassment.

We introduced programs designed around

development, skills and visibility for female

talents. We continuously work to address

the risk of harassment by ensuring that the

topic is included in our awareness program

and clearly addressing this in our Code of

Conduct and associated training.

•Young workers: Freedom of expression.

Our global employee network Next (early

career) provides young workers with a space

in which they can share, develop and find

channels to express their needs and

opinions.

Read more in Sustainability statements – Social –

Attractive workplace for all - Diversity and inclusion

We have identified potential negative

impacts on affected communities in several

areas. Affected communities may not always

have the right to a fair trial. In such cases,

the risk of not being able to have their

human rights concerns addressed is

increased where they also do not have

access to, or face barriers in accessing the

company’s grievance mechanism. Health

and environmental impacts, while medium to

low in likelihood, pose a high inherent risk

due to the potential severity and number of

people affected.

Read more in Sustainability statements – Social –

Valued partner in our communities

Saliency Assessment – Supply chain

We conducted the Saliency Assessment

with regard to product-related goods as well

as non-product-related goods and services.

In addition, we conducted an assessment of

the main materials that we source.

Deeper supply chain

As expected, with regard to the provision of

goods/products, we see very high potential

negative impacts at the mining and extraction

stages, particularly in relation to environmental

impacts, land rights, abuse of force by

security forces toward communities, and

health and safety. We also see a (very) high

risk of child and forced labor in the mining of

conflict minerals, sand, oil and gas

extraction, and in the agricultural sector (e.g.

inputs for adhesives and sealings). The

Saliency Assessment is the first step we

have taken to identify potential impacts, and

the deeper supply chain assessment

therefore only considered industry risks. All

potential impacts identified are therefore

very high and further prioritization will

require a deeper assessment.

Processing stage of the supply chain

In the materials processing stage, we see

potential (medium to high) impacts in

respect of forced labor, freedom of

association, excessive working hours, and

health and safety.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	84
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Respecting human rights (continued)

Manufacturing stages of the supply chain

In the manufacturing stages (typically our

direct suppliers and the first tiers beyond

Tier 1), we see higher risks in two key areas:

Electronic components and boards: Due to

the fact that the electronics manufacturing

industry is extremely dynamic, requiring the

industry to be flexible. This tends to result in

lower value-adding, labor-intensive, less

advanced economies, low-skilled

workforces and lower labor cost, all adding

up to an increased risk of labor exploitation.

Specifically, we identified the following

salient topics:

•Occupational health and safety, excessive

overtime and lack of freedom of

association

•Child and student labor, particularly in the

electronics industry

•Forced labor in electronics manufacturing

in certain countries.

Structural metal products: Specifically, we

identified the following salient topics:

•Occupational health and safety risks are

higher in basic metal production (e.g.

hazards such as molten metal)

•Environmental impacts to communities

due to toxic emissions (e.g. toxic metals,

mercury, CO2) to water and air.

With regard to the provision of services, we

identified the following potential negative

impacts:

•Transport and warehousing: Low-skilled

workforces. This is a result of the often-

intensive use of labor agents. We identified

risks relating to the living wage and a lower

degree of worker organization, both of

which can lead to forced labor. Migrant

workers are especially vulnerable.

•Temporary labor: We identified risks of

health and safety, freedom of association,

unequal treatment and the living wage,

where fragmented and discontinuous

work relations increase vulnerability.

•Site services / facility management /

building maintenance: We see increased

risk for workers providing on-site cleaning

security and catering services, for

example. Here we see a lower-skilled

workforce (compared to, for example,

installation services) which is typically

more vulnerable.

•Waste collection and treatment: This is

linked to the recycling industry. There is

often intensive use of low-skilled,

temporary workers, heightening, for

example, the risk of forced labor. This

sector uses potentially dangerous

equipment, so we also see an increased

risk to workers’ health and safety.

The abovementioned potential impacts are

myriad and require further prioritization in

order for us to manage them effectively.

We already have considerable controls and

measures in place to manage the mentioned

risks and will continue to tailor these to meet

our objective of preventing and mitigating

negative impacts.

Read more in Sustainability statements – Social –

Responsible value chain

Saliency Assessment – Downstream value chain

With regard to potential negative impacts in

our downstream value chain, we conducted

the Saliency Assessment in line with the

UNGPs and OECD Guidelines, taking into

account the reporting requirements of the

CSRD and ESRS. We therefore considered a

broad range of potential impacts to workers

in the downstream value chain, end users

and consumers, and affected communities.

At the time of conducting the Saliency

Assessment, the CSDDD was not yet

published. Accordingly, we are in the

process of considering the application

of this legislation to our approach to

downstream impacts.

The Saliency Assessment is an element

of our overarching human rights and

environmental due diligence process,

which forms a cornerstone for assessing

the material risks, impacts and opportunities

associated with our business operations.

What's next: Human Rights roadmap

Our Human Rights roadmap will be based

on the outcomes of the Saliency

Assessment and our management gap

analysis. It is designed to enable us to meet

our objective: a robust Human Rights

framework that ensures that we have the

capabilities to prevent or mitigate risks

appropriately, monitor and evaluate our

processes and the effectiveness of

measures taken, and report and

communicate meaningfully on our progress.

The roadmap is intended to help us focus

on gaining an enhanced understanding

of Human Rights impacts in our own

operations as well as with regard to

affected communities. It steers us toward

developing global guidance on salient labor

topics, such as harassment, improving ways

of obtaining meaningful internal rights

holder feedback, identifying the needs

of vulnerable groups, and developing

tailored training, communication and

awareness campaigns.

The roadmap will guide us toward

integrating human rights further into our

ERM and other related risk management

processes. It will also support us in moving

toward a deeper understanding of the

impact of business strategies on human

rights across our value chain. Key topics

revolve around building supply chain due

diligence processes and enhancing our

existing grievance mechanism – our

Speak Up system – to meet the

effectiveness criteria for 'non-judicial

grievance mechanisms' described in Article

31 of the UNGPs – in particular, providing

greater accessibility to workers across our

value chain and affected communities.

In 2025, we plan to update our Human

Rights Policy to describe our evolving

approach to Human Rights due diligence.

In alignment with the Human Rights Policy,

we also plan to update our Speak Up and

Non-retaliation Policy.

Read more in our Human Rights Policy at asml.com

We received no grievances about breaches

of Human Rights in 2024.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	85
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our approach to tax

Openness, honesty and

transparency are central to our

sustainability strategy – and apply

as equally to our tax approach as

to our ESG initiatives.

€1.1bn
Income tax paid 20241
(2023: €2.6bn)
18.6%
Effective tax rate 2024
((2023: 15.8%)

The taxes ASML pays make a valuable

contribution to the communities in which

we operate and are an integral part of our

responsibility for social value creation.

We remain firmly committed to complying

with all applicable tax laws and regulations

in a prompt, timely manner.

Income tax paid (received) in our most

significant countries of operation

1. Netherlands	€762m
2. United States1	€(209)m
3. Taiwan	€78m
4. South Korea	€336m
5. China	€58m

1.In the United States the income tax paid was offset

with a refund of excess prepayments made in 2023

and earlier years.

How we manage tax

Our Approach to Tax Report provides the

most relevant, up-to-date information

relating to our operating model, tax

principles and tax strategy – including how

we interact with our stakeholders. It also

includes financial information from a

country-by-country reporting perspective

and our overall tax contribution to society.

We have signed up to the Tax Governance

Code as drafted by the VNO-NCW.

Our guiding principle is that our tax position

should reflect our business operations,

which we define as the sale of lithography

systems and related products and services,

supported by manufacturing and R&D

activities. ASML has a straightforward

operating model, with our campus in

Veldhoven, the Netherlands, at the heart of

our global operations, and a Board of

Management accountable for our tax

strategy, tax principles and overall tax risk

management. These are subsequently

reviewed by the Audit Committee. The

ASML Tax and Customs department is

responsible for the execution of the tax

strategy set by the Board of Management.

Read more in our Tax Report at asml.com

Our tax principles

The following principles guide us in how we

report and pay tax in the countries where we

operate.

Compliance

•We respect the tax laws applicable in each

country. We are committed to acting in

accordance with the letter, intent and spirit

of tax laws and regulations.

•We make tax disclosures in accordance

with reporting requirements, US GAAP and

International financial reporting standards

(IFRS), where applicable.

•ASML’s profit allocation methods are

based on internationally accepted

standards as published by the OECD.

We apply these consistently across our

business, contingent on the relevant local

rules and regulations in the local

jurisdictions where we operate.

Support tax systems

•We report taxable income in a jurisdiction

commensurate with the added value of the

business activities in that jurisdiction.

•We do not use so-called ‘tax havens’ (as

defined by the European Commission’s

‘blacklist’) for tax avoidance.

Relationships with authorities

•As appropriate, we pursue an open and

constructive dialogue with tax authorities

and relevant other authorities in the

jurisdictions where we operate, based on

mutual respect, transparency and trust,

disclosing all relevant facts and

circumstances. We do not use tax

structures intended for tax avoidance, nor

will we engage in the artificial transfer of

profits to low tax jurisdictions.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	86
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Our approach to tax (continued)

Our tax strategy

1	2
Stakeholder management	The future of taxation
Externally, we communicate on a regular<br><br>basis with tax authorities, regulators and<br><br>investors. Internally, we support our<br><br>business in managing risks, staying in<br><br>control, remaining efficient in both our<br><br>administrative procedures and way of<br><br>working, and working in an integrated way<br><br>with other experts.	We closely monitor global developments<br><br>in tax transparency, ESG related taxes,<br><br>tax technology and continuously translate<br><br>these into potential requirements or<br><br>implications for ASML.		3	4	5
---	---	---
Compliance and control	Tax and customs organization	Projects
We develop, implement and monitor<br><br>processes or controls for tax risk<br><br>management and reporting purposes.<br><br>We strive for the timely and accurate<br><br>fulfillment of compliance obligations in line<br><br>with applicable tax laws and regulations,<br><br>including the timely payment of taxes due.	In a fast-changing world, it’s important to<br><br>have a diverse team comprising more than<br><br>just competent tax and customs experts.<br><br>Communication, digital and project<br><br>management skills are increasingly<br><br>important, so we strive to work and<br><br>develop together in line with ASML’s core<br><br>values: challenge, collaborate and care.	Our business and the regulatory<br><br>environments in which we operate change<br><br>constantly. We are always working on<br><br>projects to deal with these changes and<br><br>ensure the solutions implemented are<br><br>compliant and efficient. Likewise, we<br><br>continuously strive for simplification and<br><br>review of existing business models to<br><br>ensure we remain tax and customs<br><br>compliant.

ASML’s tax strategy is based on our

principles and closely aligned with our

business strategy and our sustainability

goals. It is approved by the Board of

Management and, like our tax principles and

overall tax risk management, applies to all

group entities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	87
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Competition law compliance

We know that staying compliant

1		2
Competition law compliance risk<br><br>assessment		Policy review
	Our Competition Law Compliance Policy<br><br>demonstrates our commitment to ensuring<br><br>company-wide compliance. Any act of an<br><br>employee or business partner contrary to<br><br>this policy is considered a significant<br><br>breach of our Code of Conduct, and may<br><br>lead to disciplinary measures up to and<br><br>including dismissal. We made a version of<br><br>the policy publicly available in 2020, which<br><br>is reviewed periodically, and published an<br><br>updated version in 2021.
We regularly perform risk assessments of<br><br>relevant competition law focus areas.<br><br>These help identify any risks that may be<br><br>present, improve existing controls, and<br><br>provide strategies on any remaining risks<br><br>and measures to mitigate them.
3		4
Training and awareness		Reporting/resolving issues,<br><br>violations or complaints
Competition law training is a mix of<br><br>computer-based and in-person sessions,<br><br>with the latter provided by the Global<br><br>Legal Expertise team for Competition &<br><br>Foreign Direct Investment and tailored to<br><br>relevant stakeholders. We also promote<br><br>awareness of competition law through<br><br>channels such as presentations, intranet<br><br>articles and email communications.<br><br>Training topics are based on their<br><br>relevance to the semiconductor industry,<br><br>current legal developments and wider<br><br>trends.
	We support every employee or partner<br><br>who refuses to engage in anticompetitive<br><br>conduct and reports potential violations as<br><br>stated in our Speak Up and Non-retaliation<br><br>Policy. We do not tolerate any form of<br><br>retaliation against those who adhere to<br><br>competition law rules or who speak up,<br><br>even if we lose business as a result.

with competition law is essential

for ensuring the proper function of

the market.

Competition law impacts a number of areas

in our day-to-day business and has

consequences for our interactions with

customers, suppliers, co-developers and

other partners. We are committed to the

principles of fair competition and do not

condone any form of conduct that is illegal

under applicable competition laws or our

own Code of Conduct. We expect our

partners (customers, suppliers, consultants,

contractors and intermediaries) to

demonstrate high standards of ethical

behavior consistent with our own.

ASML did not incur any fines for breaches of

competition law in 2024.

Read more in ASML’s public Competition Law

Compliance Policy

How we manage competition law

compliance

We have a number of general and specific

control measures in place to prevent, detect

and disclose potential competition law issues.

These include:

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	88
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Information security

ASML’s competitive edge is based

on knowledge and intellectual

property (IP) developed over

decades. This knowledge sits in

the minds of our employees and

many other people within our

thriving ecosystem of suppliers,

partners, customers and

knowledge institutions.

This 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 will inevitably need

access to some parts of our systems'

infrastructure. We must ensure that this is

enabled 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 new EU

regulations such as NIS2 and the Cyber

Resilience Act (CRA) and in the US with Cyber

Incident Reporting for Critical Infrastructure

(Cybersecurity and Infrastructure Security

Agency), which highlight regulators seeking to

ensure that 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 2024, as far as we are aware, ASML had

zero incidents with a material impact.

Read more in Strategic report – Performance and

risk – Risk – Risk factors – Cybersecurity and other

security incidents, or disruptions in our processes or

information 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 Compliance, Ethics,

Security and Risk Committee (CESR), which

acts as the oversight committee mandated

by the Board of Management (BoM).

The three layers of our security governance

framework are:

1.The Security Committee: Ensures 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: Ensures 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 security capability 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 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 believe each

member of the Supervisory Board is qualified

to advise on the oversight of cybersecurity

risks through their employment experience

and/or educational background in risk

management. 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	89
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Information security (continued)

The central security organization was set up

to define the policies, procedures and the

adherence to these policies in a second line

role, coordinated closely with the security

representatives in the business.

In addition, the central security organization

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, proposed response and

disclosure requirements. The CCMT is

chaired by the Chief Operations Officer, who

reports to the Board of Management on our

proposed response and then takes the

decision to the Supervisory Board. A

dedicated governance structure is in place

to deal with a crisis situation effectively. The

Chief Information Security Officer (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 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

standards set by the International

organization for Standardization (ISO 27002),

the International Society of Automation (ISA/

IEC 62443) and the US National Institute of

Standards and Technology (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 2024	90
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Privacy and personal data protection

In an increasingly interconnected

world, safeguarding personal

information is not only a regulatory

requirement but a cornerstone

of trust with our employees,

customers and partners.

How we manage privacy protection

We continue to enhance our privacy

program with the aim of ensuring

compliance with applicable laws and

regulations across the jurisdictions in which

we operate. Our approach is guided by the

principles of accountability, transparency

and respect for the rights of individuals.

We prioritize the responsible handling of

personal data and are dedicated to

implementing best practices.

Our privacy program consists of the various

approaches, processes and tools

established by ASML to manage privacy

matters in a responsible manner and

process personal information in compliance

with relevant privacy laws. Our global

privacy policy is an essential building block

in complying with applicable privacy and

data protection legislation relating to the

processing of personal data. Furthermore,

we have three separate privacy notices for

our employees, business partners and

visitors, and job applicants respectively –

describing how we collect, use, retain and

disclose personal data, and for which

purposes.

Key initiatives undertaken during 2024

include:

Strategy

The Privacy Office’s strategic objectives and

initiatives are captured in an annual plan that

serves as a roadmap for our privacy efforts.

One of the strategic pillars is centered on the

ability to leverage the infrastructure present

at ASML. By formalizing our approach, we

aim to enhance accountability and drive

continuous improvement in our privacy

practices.

Optimizing privacy processes

In the spirit of continuous improvement, we

regularly review our existing privacy

processes, with the use of technology and

automation to optimize efficiency. This

optimization not only reduces operational

risks but also enables us to respond more

effectively to the evolving privacy landscape.

Training and awareness

We conduct comprehensive training

programs for our employees to foster a

culture of privacy awareness.

As we move forward, we remain committed

to continuously improving our privacy

practices and adapting to the evolving

regulatory landscape. We recognize that

maintaining the trust of our stakeholders is

paramount, and we will continue to prioritize

the protection of personal information in our

business activities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	91
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Export controls and sanctions

We are subject to export controls

and sanctions that impact our

business.

How we manage export controls and

sanctions

Every ASML employee is required to follow

all of our policies and procedures, which

have been designed to promote compliance

and prevent unauthorized transactions.

We have implemented controls and other

measures to protect against breaches of

export control and sanctions requirements,

and we remain focused on strengthening

and enhancing the key pillars of our export

control and sanctions compliance

framework. These include:

•Governance: At a senior management

level, the Compliance, Ethics, Security and

Risk Committee (CESR), supported by the

Export Control Council, oversees the

efficiency and effectiveness of our export

control and sanctions compliance

framework. The global Export Control and

Sanctions team, reporting to the Chief

Compliance Officer, also manages the

framework and provides assistance and

guidance where needed. Each employee is

responsible for reading and understanding

the content and implications of the Export

Control and Sanctions Policy.

•Compliance organization: We keep our

Export Control and Sanctions compliance

organization sufficiently staffed and

trained. This ensures that our growing

business – and the increasingly complex

and challenging regulatory landscape in

which we operate – is supported with

adequate expertise and experience.

•Policies and procedures: We embed

export control and sanctions controls in

all of our relevant business processes.

We regularly assess the effectiveness of

our policies, procedures, systems and

controls and update them as necessary.

•Training: Building awareness around

the importance of export control and

sanctions compliance is a top priority.

We do this through continual updates

and briefings.

•Audit: Export control and sanctions

compliance are included in our internal

audit program. The Internal Audit team

periodically audits key export control and

sanctions risk areas as a matter of course.

New export control restrictions

On September 6, 2024, the Dutch

government imposed new export license

requirements on the export of TWINSCAN

NXT:1970i and 1980i DUV immersion

lithography systems, as well as on the

export and transfer of specially designed

parts, software or technology for these

systems outside of the EU. This is a

technical change that ensures that the Dutch

government is the sole licensing authority for

the shipment of these systems from the

Netherlands to other countries. ASML has

updated its processes and systems to

comply with these new export license

requirements.

On December 2, 2024, the US authorities

published an updated version of the

advanced computing and semiconductor

manufacturing equipment rule, imposing

additional restrictions on suppliers for the

export of chip manufacturing technology.

These regulations became effective

immediately with a delayed compliance date

of December 31, 2024 for some of the

changes.

The updated export control regulations

contain additions to the list of restricted

technologies including metrology and

software. In addition, further fab locations,

mainly in China, were added to the US list of

restrictions. ASML is fully committed to

complying with all applicable laws and

regulations including export control

legislation in the countries in which we

operate, while we continue to develop our

technology and serve our customers to the

best of our ability.

Read more in Strategic report – Performance and

risk – Risk – Risk factors – We are subject to

regulatory and compliance obligations in the various

countries where we operate and as our business

grows ensuring compliance becomes more

challenging

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	92
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Intellectual property protection

Our company is based

on people and knowledge.

Our specific knowledge gives

us a leading edge and a head

start over competitors.

It is key that we protect our own knowledge

as well as the information entrusted to ASML

by our customers and business partners.

How we manage intellectual property

Patents are a way to protect ASML’s R&D

investments from unauthorized use by third

parties, including exploitation by our

competitors, customers, suppliers and co-

developers. We innovate and develop our

technology with our ecosystem partners,

which comprise many different companies

and institutions, each of which requires a

dedicated way of dealing with IP matters.

ASML’s general IP strategy has three

objectives:

1.Build and maintain a solid IP portfolio

by protecting ASML's inventions.

2.Prevent situations where ASML infringes

on the IP rights of third parties.

3.Prevent the unauthorized disclosure of

confidential information, including know-

how and trade secrets, to the outside

world.

Patent portfolio trend

Processes are in place to address these

objectives. The objective of preventing

unauthorized disclosure is addressed by,

among others, a dedicated knowledge

protection program, restricted access to

engineering top secrets, an information

security program, mandatory information

classification, and a training and awareness

program.

Our Corporate Intellectual Property

department is tasked with strengthening our

global IP position. The department’s mission

is to maximize ASML’s IP value, to execute

and support ASML’s overall objectives and

to preserve ASML’s freedom of operation.

To protect our technology leadership and

our R&D in leading-edge technology, the

department is involved in the product

generation process and assesses new

products to determine whether they would

potentially infringe any relevant third-party

IP rights.

We have adopted controls, policies and

procedures intended to safeguard the

protection of our trade secrets, proprietary

customer data and other information.

Read more in Strategic report – Corporate conduct –

Information security and Strategic report –

Performance and risk – Risk – Risk factors

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	93
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Product safety

We innovate with safety

in mind. As a considerate and

conscientious manufacturer, it is

our ongoing duty to provide safe,

secure and well-designed

products.

As our company has grown, so too have the

challenges we face. Our products are

increasingly complex and we operate in more

geographical locations than ever, making it

difficult to assess which safety legislation,

regulations or compliance procedures apply.

In fact, some of our technology is so cutting-

edge that current safety standards simply

haven’t caught up. Existing standards are

often unable to provide guidance on safe

designs – for example, for high-power drive

laser and high-pressure equipment –

meaning we must either define our own

protections or work hand in hand with

regulatory authorities.

Another challenge is consistency. Safety is

tricky when there are so many people

working on the design of a product, or when

that design is outsourced to a supplier. Our

fast shipment process also means we

sometimes skip some of the testing in the

factory and conduct final testing and formal

acceptance at a customer’s site – meaning

we have to adapt our ways of working

regarding product safety. And, with fast-

changing legislation on chemicals such as

PFAS (per- and polyfluoroalkyl substances)

and RoHS (Restriction of Hazardous

Substances), it can be a challenge to keep

track.

How we manage product safety

To help to ensure both our products and

tools comply with the most stringent

regulations, we focus on safety at every

stage of the product life cycle: research,

design, development, production, transport,

installation, maintenance, upgrades and

decommissioning.

Our Global Product Safety and Regulatory

organization is part of Quality and

Excellence, which coordinates our overall

product safety approach. To support ASML

products, each product line has dedicated

safety engineers who make a first-level

system risk assessment. To support safe

design, we’ve also defined and implemented

12 key risk areas and associated product

safety competencies in line with the ISO

12100 standard in the design of machinery,

with risk experts supporting individual

projects. We are further extending our global

expertise by hiring country safety and

regulatory experts.

Our Safety and Regulatory Office is tasked

with tracking new product safety legislation

and standards and ensuring our products

are compliant. The Regulatory Board is

responsible for decision-making on product

safety compliance, the strategy to eliminate

non-compliance, monitoring compliance

status and risk mitigation. It discusses

possible non-compliance cases and makes

decisions based on the mitigation plan

presented.

Ensuring safety compliance

Every product shipped and every tool

developed by ASML complies with SEMI S2

– the Environmental, Health, and Safety

Guideline for Semiconductor Manufacturing

Equipment. These guidelines are

incorporated into the Safety System

Performance Specification.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	94
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Product safety (continued)

Our product safety competencies
The role of our development and<br><br>engineering (D&E) safety competence<br><br>leads is to provide in-depth knowledge<br><br>on any background legislation and<br><br>standards applicable in their area, as well<br><br>as defining design rules, providing training<br><br>and acting as consultants to mitigate<br><br>specific safety hazards in our products.<br><br>This includes areas such as:	•Working at height: A new area of<br><br>expertise required during the design of<br><br>our EXE:5000 – our first EUV 0.55 NA<br><br>(High NA) system – to guarantee good<br><br>access to the various system areas<br><br>and components.<br><br>•Radiation: Focusing mainly on lasers<br><br>with intensities that go beyond<br><br>standard, as well as considering the<br><br>impacts of standard and special lamps<br><br>and LEDs.<br><br>•Functional safety: Our complex<br><br>machines contain many active<br><br>protective functions to protect the user<br><br>against hazards. Examples are sensors<br><br>which monitor currents, pressure or<br><br>temperatures and independently put<br><br>the system into a safe position<br><br>when needed (e.g. Lockout Tagout<br><br>procedure).<br><br>•Safety in procedures: Supporting the<br><br>creation of written safety procedures<br><br>for complex operations.<br><br>•Thermal: The use of tin at high<br><br>temperatures requires special<br><br>precautions.<br><br>•Dangerous gases: The use of gases<br><br>requires safety systems and procedures<br><br>to protect machines and people. For<br><br>example, nitrogen is an asphyxiation<br><br>hazard and the use of hydrogen in EUV<br><br>has additional applicable legislations<br><br>and standards.<br><br>•Materials and substances: Monitoring<br><br>worldwide legislation to check the legal<br><br>status of all materials used in our<br><br>products and ensuring that we do not<br><br>use or introduce hazardous materials.
•Electrical: Making electrical design safe<br><br>and protecting people from electrical<br><br>shock. This involves making conductors<br><br>carrying hazardous voltages inaccessible,<br><br>ensuring accessible conductors don’t<br><br>carry hazardous voltages and ensuring<br><br>inaccessible conductors are sufficiently<br><br>insulated from accessible ones.<br><br>•Pressure: Interpreting and explaining local<br><br>legislation and standards, advising on<br><br>testing and documentation, and maintaining<br><br>the manufacturing record book.<br><br>•Human factor engineering (including<br><br>ergonomics): Incorporating a human-<br><br>centered design approach to maintain<br><br>access for maintenance and servicing<br><br>by laying down rules for issues such as<br><br>accessibility, posture, forces and lifting parts.<br><br>•Mechanical: Keeping track of safety<br><br>factors and seismic requirements for<br><br>our machines.<br><br>•Lifting: Advising on special<br><br>requirements such as the certification<br><br>and training of crane operators in<br><br>countries where we use lifting tools, and<br><br>when certification is needed. For<br><br>example, in South Korea, certification is<br><br>required for weights of 500 kg or more.

•

Designing in safety

Prevention is key. We focus first on safety by

design in hardware, and then safety by

procedure. Safe products start with a well-

thought-out design and safety requirements

built in from the very start of the design

process. Since human factors play an

important role in the safe operation of a

product, our first step is always to guard

against them becoming a risk. This helps

prevent workplace activities from turning

into potential accidents. If there are no

safety precautions available to address

potential hazards, we develop our own.

When we start designing our systems, our

engineers conduct an initial safety risk

assessment (SRA). Our product designers

are trained to identify safety issues early on

in the design process, and the SRA is

evaluated throughout the entire product

development process. We evaluate product

safety at each stage of the product life cycle

and track reported product-related incidents

through our incident-reporting system.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	95
At a glance	Q&A with the CEO	2024 stories	Our business	Performance	Risk	Corporate conduct
---	---	---	---	---	---	---

Product safety (continued)

EUV 0.55 NA (High NA) safety<br><br>compliance

Our latest product, EUV 0.55 NA (High<br><br>NA), is the next generation of EUV<br><br>machines. The development of the<br><br>system presented challenges for product<br><br>safety due to its larger overall size,<br><br>height and weight of modules, and<br><br>more complex accessibility.<br><br>Having started the third-party safety<br><br>design review in 2022, we continued<br><br>with hardware reviews in 2023, leading<br><br>up to a full review report in 2024. The first<br><br>shipment to customers conforms to<br><br>the requirements.

Increasing product safety in the

supply chain

Product safety does not end at our own

facilities. We work to spread this out across

our partners’ operations by promoting

product safety in the supply chain – with the

aim that all the products we ship comply

with the most stringent legislation, including

designs made or supplied by our suppliers in

the value chain. A large proportion of our

innovation and development takes place at

our suppliers’ sites, so our goal is for

suppliers to have the capability to deliver

safe and compliant products to avoid

accidents or incidents, safety-related non-

compliance issues and delayed shipments.

We have defined an end-to-end process in

close cooperation with our suppliers,

ensuring deliveries meet our safety

requirements.

Dangerous goods management

Following the successful completion of our

dangerous goods program, dangerous

goods management is now structurally

embedded across our organization.

Policies, processes, guidelines and IT

infrastructure are now in place to enable

dedicated specialists to manage dangerous

goods as part of our competence groups.

Hazardous properties are identified at an

early stage in the design process to ensure

measures are taken for the safe handling,

transport and storage of our products – on

time and with greater efficiency. Activities

are overseen by the safety and compliance

organization to safeguard the active control

of regulations and legislation impacting

ASML products.

Materials and substance compliance

We follow stringent regulations in each

of the markets in which we operate. This

currently includes RoHS, REACH

(Registration, Evaluation, Authorisation

and Restriction of Chemicals) and the

Batteries Directive in the EU, K-REACH

(Act on the Registration and Evaluation

of Chemicals) in South Korea and TSCA

(Toxic Substances Control Act) in the US.

We’ve implemented multiple initiatives to

overcome compliance challenges. These

help address an increasing number of

regulatory changes, the number of unique

parts used in our products (>50,000), the

number of regulated substances we use

(>100) and the extensive reach of our global

supply chain.

Activities in 2024 include:

•A multidisciplinary program embedding

processes throughout our organization –

improving our IT solutions, enabling

automated supply chain communication

and delivering flexible reporting

capabilities.

•Strengthening regulatory presence in key

markets for timely implementation of new

regulations in our product design.

•A proactive approach toward upcoming

regulations such as PFAS, TSCA, F-Gas

and the REACH directive by taking part in

semiconductor industry working groups,

through our membership of the PFAS

Consortium, by working with our business

partners and the supply chain, and by

establishing a working relationship with a

well-respected firm of consultants.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	96
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Corporate

governance

97	Corporate governance
99	Board of Management
101	Supervisory Board
104	Other Board-related matters
108	AGM and share capital
112	Financial reporting and audit
114	Compliance with corporate governance requirements
	Supervisory Board report
115	An interview with our Chair of the Supervisory Board
118	Supervisory Board focus in 2024
122	Meetings and attendance
127	Supervisory Board committees
139	Financial statements and profit allocation
	Remuneration report
140	Message from the Chair of the Remuneration Committee
142	Remuneration at a glance
144	Remuneration Committee
147	Board of Management remuneration
163	Supervisory Board remuneration
166	Other information

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	97
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Corporate governance at a glance

We champion integrated corporate governance to build a relationship of trust,

respect and mutual benefit with our stakeholders.

OVERVIEW
These pages provide an<br><br>overview of and a brief<br><br>introduction to the<br><br>Corporate governance<br><br>section of our Annual<br><br>Report.		Read more on page 123 >
---	---	---
2024 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 our ESG sustainability mission<br><br>and responsibilities
Read more on page 142 >				Supervisory Board diversity, nationality and tenure
---			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
	95%	97%	100%	100%	100%	100%
Read more on page 122 >									56%	44%	4.2
---	---	---	---
	Men	Women	Years average<br><br>tenure
			(2023: 3.2)
Read more on page 118 >					I am confident that our<br><br>new management team<br><br>and continued focus on<br><br>technological<br><br>leadership will secure<br><br>our long-term success.”
---
Nils Andersen
Chair of the Supervisory Board		Dutch	x2
---	---
German	x1
American	x2
British	x1
Danish	x1
Belgian	x2

Supervisory

Board

nationality

| Supervisory Board skills | | --- || International management | 89% | | --- | --- | | Finance/governance | 78% | | Remuneration | 78% | | Human resources | 89% | | IT/digital/cyber | 67% | | ESG | 100% | | Semiconductor ecosystem | 67% | | Technology | 56% | | Supply chain | 89% | | Business in Asia | 89% |

Stakeholders

We regularly engage with our stakeholders

to understand the impact we have on them,

and what their needs and expectations are.

Read more<br><br>on page 46 >
Board of Management<br><br>remuneration (€’000s)
Our Board of Management (BoM)<br><br>remuneration policy is designed<br><br>to fairly incentivize our BoM to deliver<br><br>on our business priorities and create<br><br>sustainable long-term value.

Christophe D.<br><br>Fouquet				€5,432
Frederic J.M.<br><br>Schneider-Maunoury				€4,209
Roger J.M. Dassen				€4,190
Wayne R. Allan				€3,897
James (Jim) P.<br><br>Koonmen1				€2,347
	Base salary and benefit	STI	LTI
Read more on page 147 >

1.James (Jim) P. Koonmen was appointed as a BoM

member on April 24, 2024. Total remuneration is

included as of this date.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	98
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Corporate governance

We endorse the importance of good

ASML organization
Business axis:<br><br>Customer	Business axis:<br><br>Product	Technology<br><br>axis	Execution<br><br>axis	Enabling<br><br>axis

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 NV is a public limited liability company

operating 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 which

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. 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

and report on the application of its principles in the

section Our approach to tax and in our more

comprehensive Tax Report 2024 on our website.

In accordance with the Dutch Corporate Governance

Code (mccg.nl/english), 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.

Read more in Strategic report – At a glance, Strategic report – Our

business – Our business strategy and Our business model,

Strategic report – Performance and risk – Risk – 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
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	99
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management

Our Board of Management is responsible

Our core strategy consists of six priorities
	1	Deepen customer trust	4	Create an exceptional workplace
	2	Extend our technology and<br><br>holistic product leadership	5	Drive operational excellence
	3	Strengthen ecosystem<br><br>relationships	6	Deliver on our ESG sustainability<br><br>mission and responsibilities

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 ESG

aspects relevant to us. In fulfilling its

management tasks and 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. Effective per the 2024 AGM, former President

and CEO Peter Wennink and former President and CTO

Martin van den Brink retired. Christophe Fouquet was

appointed President and CEO per the 2024 AGM.

On the same date, Jim Koonmen was appointed

Chief Customer Officer and member of the Board of

Management, underscoring our ambition to continuously

increase our responsiveness to customer needs and to

consistently deliver high-performance products and

services.

As a result of the above and effective per the 2024 AGM,

our Board of Management has a single-presidency

structure, under the chairpersonship of the President

and CEO. The Board of Management divides tasks

among its members, charging individual members with

specific managerial tasks. However, the Board of

Management 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 with all the information,

in writing or otherwise, 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. For details, see the Supervisory

Board report in this Corporate governance section.

Further information regarding the general responsibilities of

the Board of Management, its relationships with the

Supervisory Board and various stakeholders, the decision-

making process within the Board of Management and the

logistics surrounding the meetings can be found in the

Board of Management’s Rules of Procedure. These are

published in the Governance section of our website.

Appointments

Members of the Board of Management are appointed by

the Supervisory Board on the recommendation of the

Selection and Nomination Committee and upon notification

to the General Meeting. Members of the Board of

Management are appointed for a term of four years.

Reappointment for consecutive four-year terms 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 NV and the

Board of Management members does not constitute an

employment agreement pursuant to Dutch law. Accordingly,

ASML Holding NV 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.

The management services agreements between ASML

and the Board of Management members contain

specific provisions regarding severance payments. If we

terminate 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 this can

only take place after consulting the General Meeting.

More information about changes related to the Board of

Management during 2024 can be found in the Supervisory Board

report included in this Annual Report

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	100
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management (continued)

	Roger J.M. Dassen<br><br>(1965, Dutch)			James (Jim) P. Koonmen<br><br>(1967, American, Irish)
	Executive Vice President<br><br>and Chief Financial Officer<br><br>Term expires 2026		Executive Vice President and Chief<br><br>Customer Officer<br><br>Term expires 2028
	Roger Dassen joined ASML in June 2018 and was<br><br>appointed Executive Vice President and CFO and member<br><br>of the Board of Management at the AGM the same year.<br><br>He had previously served as Global Vice Chair and<br><br>member of the Executive Board of Deloitte Touche<br><br>Tohmatsu Limited, having been CEO of Deloitte Holding<br><br>BV. Roger holds a master’s in Economics and Business<br><br>Administration, a post-master’s in Auditing and a PhD in<br><br>Business Administration, all from the University of<br><br>Maastricht. He is Professor of Auditing at Vrije Universiteit<br><br>Amsterdam, and sits on the Supervisory Board of the<br><br>Dutch National Bank. He is also the Chair of the<br><br>Supervisory Board of Maastricht University Medical<br><br>Center+ and serves on the Board of the Stichting<br><br>Brainport.		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<br><br>holds a Master of Science in Management from the MIT<br><br>Sloan School of Management and a Master of Science<br><br>in Aeronautics and Astronautics from the<br><br>Massachusetts Institute of Technology.
Christophe D. Fouquet<br><br>(1973, French)		Wayne R. Allan<br><br>(1967, American)		Frédéric J.M. Schneider-Maunoury<br><br>(1961, French)
President, Chief Executive Officer and Chair<br><br>of the Board of Management<br><br>Term expires 2028		Executive Vice President and Chief<br><br>Strategic Sourcing & Procurement Officer<br><br>Term expires 2027		Executive Vice President<br><br>and Chief Operations Officer<br><br>Term expires 2026
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.		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 then, Wayne served as Senior<br><br>Vice President of Global Manufacturing Operations and<br><br>as Vice President of Wafer Fabs at Micron Technology,<br><br>Inc. the company where he began his career in 1987 as<br><br>a production operator. He continued to move into<br><br>operations roles of increasing leadership in engineering,<br><br>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<br><br>of its worldwide Hydro Business. Before this, Frédéric<br><br>had held various positions at the French Ministry of<br><br>Trade and Industry. He is a graduate of École<br><br>polytechnique (1985) and École Nationale Supérieure<br><br>des Mines (1988) in Paris.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	101
---	---	---	---	---	---
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 and our

subsidiaries. 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.

In performing its tasks, the Supervisory Board 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 activities of the Board of

Management in that regard; the relationship with

shareholders and other stakeholders; and

environmental, social and governance (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.

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 that it

still complies with applicable rules and regulations,

including those relating to the Sarbanes-Oxley Act.

Read more information on the meetings and activities of the

Supervisory Board in 2024 in Supervisory Board report – 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

checks whether the candidates fit the Supervisory

Board’s profile, which is available in the Governance

section of our website. The General Meeting may reject

binding nominations by way 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

proposed 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.

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

Supervisory Board members are eligible for reappointment

for another maximum term of four years, after which

members 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 in the Governance section of 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.

Further information about changes to the Supervisory Board‘s

composition in 2024 and 2025 can be found in the

Supervisory Board report

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.

Further information on the Supervisory Board committees can be

found in the Supervisory Board report and in the charters of the

committees as posted on our website

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	102
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board (continued)

Nils S. Andersen<br><br>(1958, Danish)	Nils Andersen joined the Supervisory Board in<br><br>2023, and has been its Chair since. Nils also<br><br>serves as Chair of the Board of Scan Global<br><br>Logistics A/S. From 2015 until May 2024, he<br><br>served as Non-Executive Director of Unilever<br><br>Plc and was appointed as Chair as per 2019.<br><br>From 2018 until 2023, he was the Chair of the<br><br>Supervisory Board of Akzo Nobel NV and,<br><br>between 2007 and 2016, he was Group Chief<br><br>Executive of A.P. Møller –Mærsk. From 2001<br><br>until 2007, Nils served as President and Chief<br><br>Executive Officer of Carlsberg and Carlsberg<br><br>Breweries.
Member of the Supervisory<br><br>Board since 2023<br><br>(First term expires in 2027)
Chair of the Supervisory Board,<br><br>Chair of the Selection and<br><br>Nomination Committee			Antoinette (Annet) P. Aris<br><br>(1958, Dutch)
---
Member of the Supervisory<br><br>Board since 2015<br><br>(Fourth term expires in 2025)
Vice Chair of the Supervisory Board,<br><br>Member of the Remuneration<br><br>Committee, the Selection and<br><br>Nomination Committee, and the<br><br>Technology Committee
Annet Aris has been a member of the<br><br>Supervisory Board since 2015. She is Senior<br><br>Affiliate Professor of Strategy (since 2003)<br><br>and Academic Director of the Corporate<br><br>Governance Centre (since 2023) at INSEAD<br><br>business school, France. From 1994 to 2003,<br><br>she was a partner at McKinsey & Company in<br><br>Germany. Annet also sits on the supervisory<br><br>boards of Jungheinrich AG and Randstad<br><br>Holding NV.		Birgit M. Conix<br><br>(1965, Belgian)	Birgit Conix became a member of the<br><br>Supervisory Board in 2021. Effective per<br><br>February 1, 2025, she was appointed as<br><br>Non-Executive Director of AstraZeneca PLC<br><br>and resides in the audit committee. Prior to<br><br>this, she was CFO and a member of the<br><br>Management Board of Sonova Holding AG<br><br>from June 2021 until January 31, 2025. From<br><br>2018 until January 1, 2021, Birgit was a<br><br>member of the Executive Board and CFO of<br><br>TUI AG. She was previously the CFO of the<br><br>Belgian media, cable and telecommunications<br><br>company Telenet Group NV. Prior to that,<br><br>Birgit held various management positions in<br><br>finance at Johnson & Johnson, Heineken,<br><br>Tenneco and Reed Elsevier.
---	---
Member of the Supervisory Board<br><br>since 2021 (First term expires in 2025)
Chair of the ESG Committee and<br><br>member of the Audit Committee			D. Mark Durcan<br><br>(1961, American)
---
Member of the Supervisory<br><br>Board since 2020<br><br>(Second term expires in 2028)
Chair of the Technology Committee,<br><br>member of the Selection and<br><br>Nomination Committee
Mark Durcan was appointed as a member of<br><br>the Supervisory Board in 2020. He is a Non-<br><br>Executive Director at Advanced Micro<br><br>Devices, Inc., and Board Member and Lead<br><br>Independent Director at Cencora. He is also<br><br>a member of the Board of Trustees for Rice<br><br>University (Texas) and as Director at Natural<br><br>Intelligence Systems CA, a private AI startup<br><br>company. From 2012 to 2017, he was CEO<br><br>of Micron Technology, Inc., having joined the<br><br>company in 1984 and having held various<br><br>management positions before being<br><br>appointed CEO. Furthermore, Mark was a<br><br>Director at Freescale Semiconductor, MWI<br><br>Veterinary Supply, Veoneer, Inc. and St<br><br>Luke’s Health System (Idaho).
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	103
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board (continued)

D. Warren A. East<br><br>(1961, British)
Member of the Supervisory<br><br>Board since 2020<br><br>(Second term expires in 2028)
Member of the Audit Committee<br><br>and the Technology Committee
Warren East became a member of the<br><br>Supervisory Board in 2020 and is currently<br><br>a Non-Executive Board member at Tokamak<br><br>Energy plc. Furthermore, he is also currently<br><br>the Chair of the Board of Directors of<br><br>C-Capture Ltd. and NATS Holdings Ltd., the<br><br>UK’s National Air Traffic Service. Warren was<br><br>CEO of Rolls-Royce Group Plc from 2015<br><br>until December 2022. He spent his early<br><br>career at Texas Instruments Ltd. from 1985<br><br>to 1994 before joining ARM Holdings, Plc,<br><br>where he held various management positions<br><br>and was appointed CEO from 2001 to 2013.		Alexander F.M. Everke<br><br>(1963, German)
---
Member of the Supervisory<br><br>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<br><br>Board in 2022. He also serves as member of<br><br>the Board of Aixtron SE, a position he has<br><br>held since May 2024. He is the former CEO<br><br>of ams-OSRAM AG, a position he held from<br><br>March 2016 until March 2023, after having<br><br>joined ams AG in October 2015. Prior to that,<br><br>Alexander held a range of positions in the<br><br>semiconductor industry, including<br><br>management roles at Siemens and Infineon<br><br>and various leadership positions at NXP<br><br>Semiconductors.		Terri L. Kelly<br><br>(1961, American)
---
Member of the Supervisory<br><br>Board since 2018<br><br>(Second term expires in 2026)
Chair of the Remuneration<br><br>Committee, member of the Selection<br><br>and Nomination Committee
Terri Kelly has been a member of the<br><br>Supervisory Board since 2018. Previously,<br><br>she was President and CEO at W.L. Gore &<br><br>Associates from 2005 until 2018, having<br><br>worked at Gore since 1983 in various<br><br>management roles. She also served on Gore’s<br><br>Board of Directors through July 2018. Terri is a<br><br>Trustee of the Alfred I. Dupont Charitable Trust,<br><br>which provides oversight of the Nemours<br><br>Foundation. She is the Chair of the Board of<br><br>the University of Delaware and a member of<br><br>the Board of Directors of United Rentals, Inc.		Jack P. de Kreij<br><br>(1959, Dutch)	Jack de Kreij joined the Supervisory Board in<br><br>2023. Among other roles, he is currently the<br><br>Vice Chair of the Supervisory Board and<br><br>Chair of the Audit Committee at TomTom NV<br><br>and Wolters Kluwer NV. Jack is also a<br><br>member of the Supervisory Board, Chair of<br><br>the Audit Committee and member of the ESG<br><br>Committee at Royal Boskalis Westminster<br><br>NV. In addition, he is the Chair of the Board<br><br>of the Dutch Association of Listed<br><br>Companies (VEUO). From 2003 to 2018, Jack<br><br>was CFO and a member of the Executive<br><br>Board of Royal Vopak NV, taking on the role<br><br>of Vice Chair from 2010 to 2018. Between<br><br>1986 and 2003 he worked at<br><br>PricewaterhouseCoopers, where he held<br><br>various management positions as (Senior)<br><br>Partner and was among other roles<br><br>Managing Partner & Territory Leader of the<br><br>M&A-focused Transaction Services practice<br><br>in the Netherlands. Jack started his career in<br><br>1980 with the Dutch Ministry of Finance,<br><br>where he worked until 1986.
---	---
Member of the Supervisory<br><br>Board since 2023<br><br>(First term expires in 2027)
Chair of the Audit Committee<br><br>and member of the Remuneration<br><br>Committee			An L. Steegen<br><br>(1971, Belgian)
---
Member of the Supervisory<br><br>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<br><br>2022. She is CEO and member of the Board<br><br>of Directors of Barco NV since September 1,<br><br>2024, after having served as a co-CEO and<br><br>member of the Board of Directors since<br><br>October 1 , 2021. Prior to that, An was R&D<br><br>director at IBM Semiconductor and<br><br>Executive Vice President at the research<br><br>institute imec in Belgium. Furthermore, An<br><br>was CTO and Executive Vice President<br><br>Electronic and Electro-Optical Materials at<br><br>Umicore.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	104
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Other Board-related matters

The section below addresses a number of

Supervisory Board
			Dutch	x2
	56%
			German	x1
			American	x2
	Male members
			British	x1
		Supervisory<br><br>Board<br><br>nationality	Danish	x1
	44%
			Belgian	x2
	Female members					At ASML, we believe<br><br>that innovation thrives<br><br>in an inclusive<br><br>environment where<br><br>diverse perspectives<br><br>are valued.”
---
Annet Aris
Vice Chair of the Supervisory Board

topics that apply to both the Board of

Management and the Supervisory Board.

Diversity

On December 11, 2024, the United States Court of

Appeals for the Fifth Circuit vacated the Nasdaq Stock

Market’s listing standards with respect to board

diversity. Pursuant to such listing standard, we, as a

foreign private issuer, were previously required to have

at least two diverse Supervisory Board members or

explain the reasons for not meeting this objective.

A Board diversity matrix was also previously required to

be included in the Annual Report on Form 20-F,

containing certain demographic and other information

regarding members of the Supervisory Board. While the

Nasdaq rules are no longer effective, Dutch legal

requirements regarding a diverse composition of the

Supervisory Board continue to apply to ASML and this

Annual Report contains information about Supervisory

Board diversity in accordance with those Dutch legal

requirements.

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

into force, introducing a quota for the supervisory

boards of Dutch listed companies following which the

composition of the supervisory board 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 NVs

and BVs and a plan outlining the actions needed in order

to meet the gender diversity targets. Based on the

gender diversity bill, companies are required to report on

the gender balance targets, the plan and their progress

made in achieving the gender balance targets to the

Dutch Social and Economic Council within 10 months

after the end of the financial year and in the

management report.

The 2022 Dutch Corporate Governance Code contains a

requirement to adopt diversity and inclusion (

D&I)

policies for the Board of Management and the

Supervisory Board as well as a company-wide

D&I

Policy for the entire workforce including senior

management. As part thereof, ASML has set targets on

gender diversity and other D&I aspects relevant for

ASML.

Currently, the Supervisory Board meets the gender

quota of the Dutch gender diversity bill, as both men

and women are represented on the Supervisory Board

by at least three out of nine members. During 2023, the

Supervisory Board adopted the Supervisory Board D&I

Policy, which has been incorporated as an annex to the

Supervisory Board's Rules of Procedure – which can be

found on our website.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	105
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Other Board-related matters (continued)

We are highly<br><br>motivated to see more<br><br>women pursuing<br><br>careers in engineering<br><br>and science.”
Christophe Fouquet
President, Chief Executive Officer and Chair of the Board of<br><br>Management		26%	12%		21%
---	---	---	---
Gender<br><br>diversity: %<br><br>inflow of<br><br>women	Gender<br><br>diversity: %<br><br>representation<br><br>of women in<br><br>job grade 13+	Women in entire<br><br>workforce 2024<br><br>(headcount)

Many backgrounds,

one purpose.

Currently, no seats are taken by women on the Board of

Management. During 2022, the Supervisory Board

updated the Board of Management Diversity Policy and

set a gender balance target for the Board of

Management to have at least one female and at least

one male Board of Management member in 2026. When

setting the gender balance target for the Board of

Management, the Supervisory Board has considered the

technology environment we operate in, with a thinly

populated global STEM (science, technology,

engineering and math) talent pool, making it challenging

to recruit female talent. The Supervisory Board also

considered the female representation of the ASML group

overall as well as the female representation in senior

leadership (JG 13+) at that time. 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. 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 our diversity and

inclusion (D&I) 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 ensures we can 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. Diversity complements our company

values: challenge, collaborate and care.

We are building and implementing company-wide

programs to further promote D&I at all levels of our

workforce. This includes specific programs aimed at

attracting, retaining and developing diverse leaders with

the purpose of increasing our talent pool of diverse

talent for senior leadership and Board of Management

positions.

Our Global Diversity and Inclusion Council, founded in

2021, consists of senior leaders who act on behalf of

ASML to provide thought leadership. The Council,

chaired by the CEO, proposes the D&I strategy to the

Board of Management, sets, promotes and monitors

diversity and inclusion initiatives, and leads company-

wide accountability for our goals. We also have a global

D&I team, including a Chief Diversity Officer, responsible

for driving initiatives that are related to D&I across

ASML.

Our company-wide D&I approach is integrated into our people

strategy and focuses on three key areas within ASML:

leadership, culture and talent. The Attractive workplace for

all section contains more information about our D&I approach

and our targets and performance in 2024 as well as a

look ahead at our D&I agenda and priority areas for 2025.

Read more in Sustainability statements – Social – Attractive

workplace for all

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	106
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Other Board-related matters (continued)

For the Board of Management specifically, the Supervisory

Board selects candidates for appointment to the Board of

Management with due observance of our objective to foster

a diverse and inclusive working environment. Accordingly,

we aim to fill vacancies by considering candidates that 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 candidates on merit against

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.

Read more information on our diversity and inclusion strategy,

initiatives, women in leadership and performance data in

Sustainability statements – Social – Attractive workplace for all

Remuneration and share ownership

The remuneration of the Board of Management is

determined by the Supervisory Board, on

recommendation of the Remuneration Committee and in

accordance with the Remuneration Policy for the Board

of Management. The current Remuneration Policy for the

Board of Management was adopted by the General

Meeting in 2022.

The remuneration of the Supervisory Board is based on

the Remuneration Policy for the Supervisory Board. The

current Remuneration Policy for the Supervisory Board

and the remuneration amounts were adopted by the

General Meeting in 2023. 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 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 transactions in ASML shares

performed by members of the Board of Management

and the Supervisory Board are reported to the Dutch

AFM. Nils Andersen holds 1,060 ASML shares. No other

member of the Supervisory Board currently has 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 and 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.

Detailed information on the Board of Management’s and the

Supervisory Board’s remuneration can be found in the

Remuneration report

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	107
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Other Board-related matters (continued)

Conflicts of interest and related party transactions

Conflict of interest procedures are incorporated in both the

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

of Procedure. These procedures reflect Dutch law and the

principles and best practice provisions of the Code with

respect to conflicts of interest.

There have been no transactions in 2024, nor are there

currently any transactions, between ASML or any of our

subsidiaries, or any significant shareholder and any

member of the Board of Management, officer,

Supervisory Board member or any relative or spouse

thereof, other than ordinary course compensation

arrangements. Furthermore, we have not granted any

personal loans, guarantees or the like to members of the

Board of Management or Supervisory Board.

Insider trading

We have adopted an insider trading policy governing the

purchase, sale and other dispositions of our securities

by directors, senior management and employees.

A copy of the insider trading policy is filed 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 Supervisory Board positions

in large companies or large foundations as defined in

Dutch law, with chairpersonships counting twice.

During the financial year 2024, all members of the Board

of Management and the Supervisory Board complied

with the requirements described.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	108
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

AGM and share capital

		A General Meeting (AGM) is held at least<br><br>once a year and generally takes place<br><br>in Veldhoven, the Netherlands. In 2024,<br><br>shareholders had the option to attend<br><br>the AGM in person in Veldhoven or virtually.<br><br>The agenda for the AGM typically includes<br><br>the following topics:
In 2024, we engaged<br><br>with investors to<br><br>obtain their<br><br>perspectives and<br><br>understand their<br><br>expectations.”
	Item 1<br><br>Discussion of the Management Report and the adoption<br><br>of the Financial statements over the past financial year.<br><br>Item 2<br><br>Discussion of the dividend policy and approval of any<br><br>proposed dividends.<br><br>Item 3<br><br>Advisory vote on the Remuneration report over the past<br><br>financial year.<br><br>Item 4<br><br>The discharge from liability of the members of the Board<br><br>of Management and the Supervisory Board for the<br><br>performance of their responsibilities in the previous<br><br>financial year.<br><br>Item 5<br><br>The limited authorization for the Board of Management<br><br>to issue (rights to) shares in ASML’s capital, and to<br><br>exclude preemptive rights for such issuances, as well as<br><br>to repurchase shares and to cancel shares.<br><br>Item 6<br><br>Any other topics proposed by the Board of Management,<br><br>the Supervisory Board or shareholders in accordance<br><br>with Dutch law and the Articles of Association.
Nils Andersen
Chair of the Supervisory Board

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 representing 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.

Extraordinary general meetings may be held when

considered necessary by the Supervisory Board or

Board of Management. In addition, an extraordinary

general meeting 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 agenda items

are voting items, and which items are for discussion

only. All documents related to the General Meeting,

including the agenda with explanations, are posted on

our website.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	109
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

AGM and share capital (continued)

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.

Hybrid AGM

Similar to the 2023 AGM, we organized a hybrid AGM in

2024, accommodating attendance in person as well as

virtually by enabling shareholders to follow the

proceedings of the meeting via video webcast and to

vote electronically during the meeting. Shareholders also

had the opportunity to vote in advance via written or

electronic proxy. As we highly value interaction with our

shareholders, we invited shareholders who attended the

AGM in person to ask questions about the agenda items

during the AGM and we provided holders of shares

traded on Euronext Amsterdam who attended the AGM

virtually the opportunity to ask live questions in writing

through the virtual meeting platform. All questions raised

were answered during the AGM.

Resolutions are adopted by the General Meeting by 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.

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 and

•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.

Our Articles of Association are included as Exhibit 1.1

hereto, and are incorporated by reference herein.

ASML’s authorized share capital amounts to 126.0 million and is divided into:
	Number of shares	Nominal value	Votes per share
	700,000,000	€0.09 per share	1
	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:
	2022	2023	2024
	394,589,411	393,421,721	393,283,720
	8,548,631	6,162,857	546,972
	403,138,042	399,584,578	393,830,692

All values are in Euros.

As of December 31, 2024, 90,315,092 ordinary shares

were held by 292 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

register in the Netherlands, held by us at our address at

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

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	110
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

AGM and share capital (continued)

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.

2024 authorization to issue shares

At our 2024 AGM, the Board of Management was

authorized from April 24, 2024, through October 24,

2025, 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 24,

2024, plus an additional 5% of our issued share capital

at April 24, 2024, that may be issued in connection with

mergers, acquisitions and/or (strategic) alliances. Our

shareholders also authorized the Board of Management

through October 24, 2025, 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.

2024 authorization to repurchase shares

At the 2024 AGM, the Board of Management was

authorized, subject to Supervisory Board approval, to

repurchase through October 24, 2025, up to a maximum

of 10% of our issued share capital at April 24, 2024, 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.

Read more details on our share buyback program in

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), a foundation organized

under Dutch law, has been granted an option right to

acquire preference shares in the share capital of ASML.

The Foundation may exercise the Preference Share

Option in situations where, in the opinion of the

Foundation’s Board of Directors, our interests, our

business or the interests of our stakeholders are at

stake. This may be the case if:

•A public bid for our shares is 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 to such a bid; or

•In the opinion of the Foundation’s Board of Directors,

the (attempted) exercise of the voting rights by one

shareholder or more shareholders, acting in concert, is

materially in conflict with our interests, our business or

our stakeholders.

Objectives of the Foundation

The Foundation’s objectives are to look after our

interests and those of ASML and the enterprises

maintained by and/or affiliated in a group with ASML, in

such a way that our interests and those of enterprises

and all parties concerned are safeguarded in the best

possible way, and 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, and everything

related to the above or possibly conducive thereto. 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 gives the Foundation the

right to acquire such number of cumulative preference

shares as the Foundation will require, provided that the

aggregate nominal value of such number of cumulative

preference shares shall not exceed the aggregate

nominal value of the ordinary shares issued at the time

of exercise of the Preference Share Option. The

subscription price will be equal to their nominal value.

Only one-quarter of the subscription price would be

payable at the time of initial issuance of the cumulative

preference shares, with the other three-quarters of the

nominal value only being payable when we call up this

amount. Exercise of the Preference Share Option could

effectively dilute the voting power of the outstanding

ordinary shares by one-half.

Cancellation of cumulative preference shares

Cancellation and repayment of the 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.

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.

Board of Directors

The Foundation is independent of ASML. The Board of

Directors of the Foundation is composed of four

independent members from the Netherlands’ business

and academic communities. The Foundation’s Board of

Directors is composed, per December 31,

2024

, of the

following members: Mr. A.P.M. van der Poel, Mr. S.

Perrick, Mr. S.S. Vollebregt and Mr. J.B.M. Streppel.

Effective per January 1, 2025, Mr. A.P.M. van der Poel

was replaced by Mr. W. A. Pelsma.

Other than the arrangements made with the Foundation

as described above, ASML has not established any

other anti-takeover devices.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	111
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

AGM and share capital (continued)

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, 2024. The information set out below with respect

to shareholders is based on public filings with the SEC and AFM as of February 26, 2025.

	Shares	% of class4
Capital Research and Management Company1	40,615,837	10.33%
BlackRock Inc.2	31,259,169	7.95%
Members of ASML’s current Board of Management and Supervisory Board (6 persons)3	43,314	0.01%

1.As reported to the AFM on February 7, 2022, Capital Research and Management Company (CRMC) reports 365,542,532 voting rights

corresponding to 40,615,837 ordinary shares (based on 9 votes per share), but does not report ownership rights related to those shares.

2.Based solely on the Schedule 13-G/A filed by BlackRock Inc. with the SEC on February 5, 2024, BlackRock Inc. reports voting power with

respect to 28,843,069 of these shares. A public filing with the AFM on December 6, 2022, shows an aggregate indirect capital interest of 5.80%

and voting rights of 7.23%, based on the total number of issued shares and voting rights at that time.

3.Does not include unvested shares granted to members of the Board of Management. For further information, see Remuneration Report – Board

of Management Remuneration.

4.As a percentage of the total number of ordinary shares issued and outstanding, 393,283,720 as of December 31, 2024, which excludes

546,972 ordinary shares which have been issued but are held in treasury by ASML and 15,642 fractional shares of which 15,216 are owned by

(former) ASML employees and 426 are owned by ASML. The share ownership percentages reported to the AFM or the SEC are expressed as a

percentage of the total number of ordinary shares issued (including treasury stock) and, accordingly, percentages reflected in this table may

differ from percentages reported to the AFM or the SEC.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	112
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Financial reporting and audit

Annual Reports

We publish, among others, the following annual<br><br>reports regarding the financial year 2024:<br><br>•The statutory Annual Report, prepared in<br><br>accordance with the requirements of Dutch law.<br><br>The Financial statements included therein are<br><br>prepared in accordance with Part 9 of Book 2 of the<br><br>Dutch Civil Code and EU-IFRS, and the<br><br>Sustainability statements included therein are<br><br>prepared in accordance with the European<br><br>Sustainability Reporting Standards (ESRS).<br><br>•The Annual Report on Form 20-F, prepared in<br><br>accordance with the requirements of the Exchange<br><br>Act. The Financial statements included therein are<br><br>prepared in conformity with US GAAP.<br><br>Both reports have the same qualitative base and<br><br>provide the same description of our business,<br><br>corporate governance, risk factors specific to the<br><br>semiconductor industry, ASML and our shares.<br><br>We also provide sensitivity analyses by providing:<br><br>•A narrative explanation of our Financial statements<br><br>•The context within which financial information<br><br>should be analyzed<br><br>•Information about the quality, and variability, of our<br><br>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 the content and layout of our report,

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 the Board of Management in

overseeing our disclosure activities and compliance with

applicable disclosure requirements arising under Dutch

and US law, and other regulatory requirements. These

internal procedures are frequently discussed by the

Audit Committee and the Supervisory Board.

For ASML’s internal risk management and control systems, read

more in Strategic report - Performance and risk – Risk – How we

manage risk

The Supervisory Board has reviewed and approved our

2024 Financial statements and our Sustainability

statements as prepared by the Board of Management.

KPMG has duly examined our Financial statements and

the Auditor’s Report is included in the Consolidated

financial statements.

External audit

In accordance with Dutch law, our external auditor is

appointed by the General Meeting, based on a

nomination for appointment 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, KPMG, was

first appointed by the General Meeting in 2015 for the

reporting year 2016, and has been reappointed on a

yearly basis since. At the 2022 AGM, KPMG was

appointed as the external auditor for the reporting years

2023 and 2024. On December 4, 2024, KPMG was

appointed by the Supervisory Board as the external

auditor to perform a limited assurance engagement and

issue an assurance report on the Sustainability

statements for the reporting year 2024.

On April 26, 2023, the General Meeting adopted the

proposal to appoint PricewaterhouseCoopers

Accountants NV (PwC) as our external auditor for the

reporting year 2025.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	113
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Financial reporting and audit (continued)

The Audit Committee reviews and approves the external

auditor’s audit plan for the audits planned during the

financial year. The audit plan also includes, among other

things, the activities of the external auditor with respect

to their limited procedures on the quarterly results other

than the annual accounts. Proposed services may 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.

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 other 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. As the

Audit Committee has the most relevant insight and

experience in this area, the Supervisory Board has

delegated these responsibilities to the Audit Committee.

Read more information on principal accountant fees and services

in Other appendices – Appendix – Principal accountant fees and

services

In principle, the external auditor attends all the 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 with regard to the audit of the

annual reports 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 the 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

audits and compliance audits. The Internal Audit

department 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

the Internal Audit findings and progress made compared

with 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

2024, a self-assessment of the Internal Audit function

was performed. The results of the assessment were

discussed with the Board of Management at the end of

2024 and with the Audit Committee in early 2025.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	114
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Compliance with corporate governance requirements

Corporate information

ASML Holding NV 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.

Read more in Exhibit Index – Exhibit 8.1 – List of

main subsidiaries

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 the 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 2024.

The Board of Management and the

Supervisory Board, Veldhoven,

March 5, 2025

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

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	115
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

An interview

with our Chair of the Supervisory Board

Nils Andersen

The Supervisory Board supervises

I am confident that with<br><br>our new Board of<br><br>Management and<br><br>continued focus on<br><br>industry leadership, we<br><br>are well positioned to<br><br>continue our long-term<br><br>success.”
Nils Andersen
Chair of the Supervisory Board

and advises the Board of

Management in performing its

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.

Supervisory Board Chair Nils

Andersen outlines the Supervisory

Board’s key activities during the

year and his expectations for the

year ahead.

Q	What were the business<br><br>highlights of the year?

ASML celebrated its 40th anniversary during

2024. It was a year when the company

again made significant progress on the

technological, business, financial and ESG

fronts, despite challenges caused by the

slower-than-expected recovery in some of

our markets. These results were achieved

against the backdrop of global geopolitical

and economic uncertainty and during a time

of significant internal reorganization.

From a technological and operational

perspective, the standout highlight of the

year was that our first High NA EUV machine

is now up and running at a customer site.

This successful implementation is a real

tribute to the innovation mindset that

characterizes ASML, and our teams remain

focused on continuing to make progress on

our innovation roadmap.

As we anticipated, the year has not been

without its challenges. Although AI has

emerged as a key driver for our industry,

sectors such as PCs and smartphones

recovered at a slower pace than anticipated.

Geopolitical matters have continued to

become more challenging, including export

restrictions, the evolving relationship

between the US and China and the wars in

Ukraine and the Middle East.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	116
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

An interview with our Chair of the Supervisory Board (continued)

Nils Andersen

| Q | How do you reflect on the<br><br>leadership transition? | | --- | --- || Our values of<br><br>challenge, collaborate<br><br>and care express the<br><br>essence of what<br><br>makes ASML such a<br><br>unique company.” | | --- | | Nils Andersen | | Chair of the Supervisory Board |

The Supervisory Board was delighted to

note that the company’s transition to a new

leadership went very smoothly. Following

the retirement of Peter Wennink and Martin

van den Brink as Co-Presidents of the Board

of Management, Christophe Fouquet was

appointed as President and CEO and Jim

Koonmen as Chief Customer Officer per the

2024 AGM. The Supervisory Board invested

considerable time and effort preparing for

this leadership change, and has continued to

stay in close contact with the new Board of

Management in the months since the AGM,

providing support and advice where needed.

On behalf of the Supervisory Board, I would

like to express our thanks to Christophe,

Peter and Martin for their co-operation and

collaboration as ASML sets out on the next

stage of its journey. I believe the new

leadership team has been well-received by

all our stakeholders, including our ASML

colleagues, and I am confident that with our

new Board of Management and continued

focus on industry leadership we are well

positioned to continue our long-term

success.

Q	How does the Supervisory<br><br>Board support the Board of<br><br>Management?

Throughout the year, the Supervisory Board

worked hard to support the Board of

Management in achieving its strategic aims.

We are a group of nine seasoned

professionals with extensive experience in

technology, manufacturing and all aspects

of business, including global geopolitics.

During the year we held formal meetings

with the Board of Management,

complemented by regular informal

touchpoints.

We provide oversight, evaluate performance

and draw on all our expertise and

experience to issue advice when requested

or when we perceive that it would be

beneficial. In order to be able to optimally

fulfill our role, we constantly look for

opportunities to strengthen our knowledge

about ASML’s business and technology, for

example through in-depth educational

sessions and site visits. We visited ASML’s

facilities in Hsinchu and Linkou, Taiwan, as

well as the ASML site in Berlin, and I also

paid a visit to ASML businesses in San Jose.

Q	How do you engage with<br><br>stakeholders?

As a Supervisory Board we invest significant

time in furthering our understanding of

ASML and its wider ecosystem, interacting

with the full group of stakeholders.

For example, in December 2024 we visited

TSMC (Taiwan Semiconductor

Manufacturing Company Ltd.) in Taiwan in

order to further build our understanding of

our customers and how ASML can best

meet their needs.

Suppliers have a very important part to play

in our company’s success, so we met with

many key suppliers at ASML’s Suppliers’

Day, where we gained concrete knowledge

of how the ASML ecosystem is enabling us

to generate demonstrable progress in

technology and stay a global leader in our

field.

In addition, we engaged with our people on

many levels over the last 12 months – not

only through formal interactions with the

Works Council but also during formal Board

meetings and site visits. For me, it is

important that we spend time with the

people in the organization. These

interactions are both interesting and

productive in the sense that we not only

learn more about the company, but also

raise our profile among our colleagues as

well as in our industry in general.

Furthermore, in response to a

recommendation that came out of last year’s

Supervisory Board evaluation, we organized

lunches with employees. These lunches

enabled the Supervisory Board and a group

of employees to meet and discuss items of

interest in an informal setting. In July we

hosted an employee lunch in Veldhoven and

a similar event was held with ASML

employees in Taiwan. The Supervisory

Board concluded that these employee

lunches are both enjoyable and useful – and

we have since committed to participating in

further such events in the future.

Engagement with investors is important for

the Supervisory Board. During 2024 we held

two governance roadshows which were

mainly focused on remuneration, but during

which other governance topics were also

discussed. The Supervisory Board highly

appreciates these interactions with and the

feedback received from investors.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	117
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

An interview with our Chair of the Supervisory Board (continued)

Nils Andersen

Q	How does the Supervisory<br><br>Board help ASML maintain<br><br>and strengthen its values?

Our values of challenge, collaborate and

care express the essence of what makes

ASML such a unique company. They also

shape the way the Supervisory Board

operates – and they really came to the fore

during the leadership transition, with the

Supervisory Board collaborating with the

new and outgoing leadership teams to the

overall benefit of everybody who works at

ASML and in the wider ecosystem.

It is important that nobody at ASML

becomes complacent. We must all

constantly challenge the status quo and

search for better, faster or more cost-

effective ways of working. The Supervisory

Board spends a lot of time with the Board of

Management, examining plans in great detail

and questioning priorities, and also with

customers, suppliers and of course our own

people – always asking questions,

challenging preconceptions and bringing our

big-picture, long-term perspective to the

business and its relationships.

Q	What will be the Supervisory<br><br>Board’s key focus areas for<br><br>2025?

First of all, in 2025, there will be a change in

the composition of the Supervisory Board:

Annet Aris will be stepping down effective

per the 2025 AGM. I would like to express

my gratitude to her – she has been a

valuable member of the Supervisory Board

since 2015 and served as its vice chair since

2021. Annet has contributed significantly as

a member of the Selection & Nomination

Committee, Technology Committee and

Remuneration Committee, and she has been

an invaluable source of insight and support

for ASML. We wish her all the best in her

future endeavors.

On a personal note, I am very proud to serve

as Chair of such a dynamic, talented

company. The Supervisory Board is totally

committed to playing a key role in enabling

ASML to remain a locomotive of technology

development in Europe.

The geopolitical situation will continue to be

challenging and the short-term market

situation means that our customers are likely

to face a degree of volatility.

Through 2025 and beyond, the Supervisory

Board will continue to support ASML’s

Board of Management in pushing the

boundaries of innovation, particularly in

advanced EUV, and investing broadly in

improving our competitiveness across all our

business areas. At the same time, we will

monitor progress against the company’s

ESG commitments, focusing on energy

efficiency for our customers and end users,

as well as in our own operations and supply

chain.

The skills, determination and sheer hard

work of our people were the foundation

stones of another successful year at ASML.

On behalf of the Supervisory Board, I thank

you all unreservedly and we all look forward

to working with the team to create even

greater value for ASML and our stakeholders

in the year ahead.

Nils Andersen

Chair of the Supervisory Board

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	118
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board focus in 2024

7	44%
Supervisory<br><br>Board meetings	Female<br><br>members
(2023: 6)	(2023: 44%)
95%	4.2
Attendance<br><br>rate	Years average<br><br>tenure
(2023: 98%)	(2023: 3.2)
Alongside the annual strategy<br><br>review, the Supervisory Board<br><br>addressed strategic topics<br><br>throughout the year via deep<br><br>dives, which enabled focused,<br><br>in-depth review.”
Nils Andersen
Chair of the Supervisory Board			Supervisory Board focus in 2024
---	---	---
Throughout 2024, the Supervisory Board agenda was centered on the strategy<br><br>and its execution, the CEO and Board of Management transition, financial and operational<br><br>performance, business developments, risk management, and people and organization.<br><br>Based on the strategic priorities for ASML as agreed in the annual strategy review, several<br><br>topics were extensively discussed by means of deep dives, allowing a focused and in-<br><br>depth review.
	Strategy and sustainable long-term value creation
Focus area 2024
•Annual strategy review<br><br>•Geopolitical strategy<br><br>•ASML operating model<br><br>•Semiconductor and lithography market<br><br>•High transmission platform<br><br>•Technology & holistic lithography roadmap		•ERP migration<br><br>•Global footprint<br><br>•Deep dive: Cost and flexibility and cash flows<br><br>•People strategy

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 maintain an appropriate system of checks

and balances, provide oversight, evaluate performance

and give advice where required or requested. Through

good governance, we help to ensure that ASML acts in

the best interests of the company and its stakeholders.

In this Supervisory Board report, we report on our

activities in 2024.

2024 was a year of transition, both from a leadership

perspective and from a market point of view. In the year

of ASML's 40th anniversary, former Presidents Peter

Wennink and Martin van den Brink retired after many

years of service and Christophe Fouquet was appointed

President and CEO effective per the 2024 AGM. At the

same time, Jim Koonmen was appointed to the Board of

Management as Chief Customer Officer. In challenging

market and geopolitical circumstances, ASML delivered

the industry’s first High NA EUV tool, achieved a

financial performance in line with expectations and

delivered on its ESG commitments, while continuing to

further build on the strategy to scale our technology into

the next decade and extend our holistic lithography

portfolio, thereby creating future growth opportunities.

We devoted a considerable amount of time in 2024 to

discussing strategic topics. We carried out our recurring

annual review of ASML’s corporate strategy and the

long-term financial plan. During the annual strategy

review, we confirmed our support for the general

strategic direction and discussed the key strategic

challenges and focus for further strategy development.

The Supervisory Board provided their perspectives on

topics such as semiconductor and lithography market

developments, cost and flexibility, future technology and

innovation roadmap, and ASML’s global footprint.

We fully support ASML’s strategy, which is centered on

the six pillars: 1. Deepen customer trust; 2. Extend our

technology and holistic product roadmap; 3. Strengthen

ecosystem relationships; 4. Create an exceptional

workplace; 5. Drive operational excellence; and 6.

Deliver on ESG sustainability mission and

responsibilities.

As part of the annual strategy review, we held dedicated

workshops focused on our technology and holistic

product roadmap, semiconductor and lithography

market, high transmission platform and ERP migration.

These sessions enable an engaged and focused

discussion between the Supervisory Board and Board of

Management on key strategic matters, and we highly

value this way of contributing to the strategic decision-

making process.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	119
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board focus in 2024 (continued)

| Strategy and sustainable long-term value creation | | --- || | Market and business developments | | | --- | --- | --- | | Focus area 2024 | | | | | | Deep dive: Market and geopolitics | | •Market outlook and demand drivers<br><br>•Update on business: EUV, DUV, Applications<br><br>•Transformation projects related to sourcing and<br><br>supply chain, customers and future operating model | | | | | | The Supervisory Board discussed with the Board of<br><br>Management the short-, medium- and long-term<br><br>market developments in the semiconductor industry<br><br>and the related growth opportunities for ASML.<br><br>Aspects discussed were the key end-market drivers,<br><br>the future of lithography shrink and the future<br><br>affordability of lithography solutions, potential<br><br>opportunities in adjacent technologies and ASML's<br><br>competitive position. In terms of geopolitics, the<br><br>Supervisory Board made recommendations as to<br><br>how to best navigate the current challenges. | | We closely monitored the market and business<br><br>developments and saw management address the<br><br>challenges related to macroeconomics, semiconductors<br><br>and geopolitics with the highest priority. As a<br><br>technology leader in the semiconductor industry,<br><br>technological progress is one of ASML’s top priorities.<br><br>We closely followed the execution of the product and<br><br>technology roadmap and are pleased to see ASML<br><br>making good progress on further enhancements to our<br><br>EUV, DUV and metrology and inspection systems.<br><br>Another area of focus during 2024 was export controls.<br><br>We closely followed and discussed with the Board of<br><br>Management developments in this area and the<br><br>implications for ASML.<br><br>We are confident that ASML is well positioned to<br><br>continue to deliver long-term growth and stakeholder<br><br>value in a sustainable manner. | | |

Other strategic topics discussed throughout the year

included transformation programs in the following areas:

the integrated operating model, the geopolitical strategy

and the people strategy.

With global trends expected to continue fueling

semiconductor growth long-term driving an increasing

demand for wafers and ASML continuing to focus on the

execution of its strategic priorities, we have confidence in

ASML’s long-term growth opportunities and the continued

delivery of value to its stakeholders.

Deep dive: Operating model
The Supervisory Board paid attention to the operating<br><br>model and its evolution, taking into consideration the<br><br>strong growth of the company in the past decade and<br><br>the anticipated future growth. Aspects discussed with<br><br>the Board of Management included how ASML can<br><br>further improve its ability to respond to market<br><br>demand with increased flexibility and agility to<br><br>maintain our customer trust and technology<br><br>leadership.		Risk
---

Focus area 2024

•Geopolitics

•IT Security

As risk management is a key element of our

responsibilities, risk is a topic that is top of mind for the

Supervisory Board when discussing with the Board of

Management the strategy and strategy execution,

whereby external developments, risk appetite and risk

mitigations are taken into consideration. During 2024,

we paid particular attention to the challenges created by

the (geo)political risks, given the global trade situation,

and developments in the area of export controls and the

potential impact on ASML's business. Security was

another area of attention, given the increasing risk profile

in relation to that, and the Audit Committee therefore

performed a deep dive review on security in 2024.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	120
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board focus in 2024 (continued)

	Financial and operational performance
Focus area 2024		Attention was paid to free cash flow, given the<br><br>challenging economic climate, as well as because<br><br>ASML decided to support customers and suppliers in<br><br>navigating this situation.<br><br>Another area of focus during 2024 was cost and<br><br>flexibility. While our outlook for future growth remains<br><br>strong, short-term volatility will occur and in 2023 and<br><br>2024 we saw a downturn in the semiconductor industry.<br><br>The Supervisory Board focused on the challenges<br><br>related to addressing the downcycle while at the same<br><br>time preparing for the upcycle when it occurs, and<br><br>stressed the importance of flexibility and cost efficiency<br><br>in order to ultimately support our customers with cost-<br><br>effective solutions.		Deep dive: ESG sustainability strategy
•2023 Annual Results and Annual Report<br><br>•2023 external audit report<br><br>•Final dividend 2023<br><br>•External auditor rotation<br><br>•Legal matters report<br><br>•2024 statutory interim report<br><br>•Cash return including dividend policy, interim<br><br>dividend and share buyback program<br><br>•ERP migration<br><br>•Focus on cost and flexibility and cash flows
			As a Supervisory Board we consider ESG<br><br>sustainability to be an increasingly important topic.<br><br>While the Supervisory Board keeps the overall<br><br>oversight of ESG sustainability, various ESG<br><br>sustainability aspects are discussed at committee<br><br>level – for example, reporting in the Audit Committee,<br><br>diversity in the Selection and Nomination Committee,<br><br>ESG sustainability as part of the Board of<br><br>Management's incentive scheme in the Remuneration<br><br>Committee, and product and technology aspects in<br><br>the Technology Committee. In 2024, we discussed<br><br>updates to ASML’s ESG sustainability strategy with<br><br>the Board of Management. The Climate Transition<br><br>Plan was also brought to the plenary Supervisory<br><br>Board, after review by the ESG Committee. The<br><br>Supervisory Board also reassessed how the ESG<br><br>oversight activities had been allocated to the<br><br>Supervisory Board and its committees and some<br><br>minor changes were agreed-upon.
	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<br><br>Board, assisted by the Audit Committee, reviewed<br><br>ASML’s financing and cash return policies. The<br><br>Supervisory Board approved the Board of<br><br>Management’s proposals for the final and interim<br><br>dividends paid in 2024. Furthermore, we monitored<br><br>the execution of the 2023–2025 share buyback<br><br>program.					People and organization
---

Focus area 2024

•People strategy

•Results of employee engagement survey

•Composition of Board of Management

•Leadership transition and operating model

•Composition of the Supervisory Board

•Remuneration Policy for the Board of Management

•Remuneration of the Supervisory Board

Given the significant growth of ASML in recent years, the

topics of people and organization continued to be key areas

of focus for the Supervisory Board in 2024, as we believe

that these are of critical importance for the future success of

ASML. On several occasions, we were provided with

updates on Human Resources and Organization (HR&O).

Topics covered included the People Strategy, the progress

made on the ASML leadership program, the results of the

annual employee engagement survey and D&I.

Specific attention was paid to ASML's leadership transition.

While the Selection and Nomination Committee devoted a

significant amount of time and attention on this topic, also at

the level of the plenary Supervisory Board, the leadership

transition was a key area of focus during 2024 and the

Supervisory Board closely followed and provided support

and advice aimed at a smooth transition. This was not only

done during formal meetings, but also informally outside the

scheduled meetings throughout the year. The Supervisory

Board is pleased that the transition has been a smooth one,

as can be read in more detail in the report of the Selection

and Nomination Committee.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	121
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board focus in 2024 (continued)

| People and organization | | --- || Governance and stakeholders | | --- |

Furthermore, we find it important that business processes

are fit for growth. We therefore oversaw the transformation

of the operating model initiative, focused on further

optimizing the way we operate by streamlining the decision-

making structures and processes, in view of the growth and

increasing complexity of the company. Another area of

attention was the organization Technology functions within

the company. We also paid attention to the ERP migration

program, which is closely linked to the operating model

transformation, and was identified as one of the key focus

areas in strategy execution.

Finally, the Supervisory Board was kept up-to-date by

the Remuneration Committee on the review of the

remuneration and Remuneration Policy for the Board of

Management, as well as the review of the remuneration

of the Supervisory Board. The Supervisory Board

provided input and feedback to the Remuneration

Committee during 2024 and, in early 2025, decided to

submit proposals to the General Meeting in relation to

these two topics, per the recommendation of the

Remuneration Committee.

Focus area 2024

•Outcome of Supervisory Board evaluation

•AGM agenda

•Amendment to the Rules of Procedure Board

of Management and Supervisory Board

•AGM update

•ESG oversight by Supervisory Board and

Committees

•Investor Day

•Customer deep dive: TSMC

•Customer visit: TSMC

We regularly discussed ASML’s relationship with its

shareholders, and Supervisory Board members engaged

with shareholders throughout the year on topics such as

ASML’s strategy and performance, governance and

ESG. The Remuneration Committee engaged with a

variety of ASML shareholders and other stakeholders

regarding remuneration. More information can be found

in the Remuneration Report.

A Supervisory Board delegation held two formal

meetings with the Works Council in 2024, exchanging

views on ASML’s strategy and priorities, and

performance and challenges, in particular related to the

growth and increased complexity of its business as well

as the challenging external circumstances. In this

context, employee well-being and engagement were

also discussed. In early 2024, special attention was paid

to the cooperation between the Supervisory Board and

the Works Council, given that a new Works Council was

installed in January 2024. Apart from the formal

meetings, the Supervisory Board also exchanged with

the Works Council about ASML's leadership change,

about the composition of the Supervisory Board, given

the Works Council's (enhanced) right of

recommendation, and about the remuneration of the

Board of Management and the Supervisory Board.

In November 2024, the Supervisory Board paid a visit to

one of our key customers, TSMC, in Hsinchu, Taiwan.

During the visit, the Supervisory Board met with TSMC

management and was provided with a business update

as well as an overview of the current and future

technology roadmap. A visit was also paid to TSMC's

chip production facilities in Hsinchu, where the

Supervisory Board was impressed by seeing a broad

range of ASML tools in action in the chip manufacturing

process. For the Supervisory Board, such visits are

highly valuable because they increase our understanding

of ASML's customers and the challenges they face.

Additional topics

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 the business priorities

including ESG, a financial update and the Supervisory

Board Committee reports.

Other topics considered during Supervisory Board

meetings in 2024 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 the area of export control regulations.

•Supervisory Board composition, profile and

functioning: We extensively discussed our own

composition, profile and functioning, the composition

and functioning of 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 also 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	122
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Meetings and attendance

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 2024, the Supervisory Board held seven meetings.

Of these meetings, two were held virtually and five were

held in person. Three in-person meetings were held at

ASML's headquarters, and two were held offsite in the

Netherlands and Taiwan. In addition to these meetings,

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 there is time for review and discussion. At each

meeting, the Supervisory Board members discuss

among themselves 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 the meetings of

the five Supervisory Board committees were well

attended, as is shown in the table on the right.

In addition to the Supervisory Board members, the

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 2024. Members of senior management are

regularly invited to provide updates on topics within their

area of expertise. This gives the Supervisory Board the

opportunity to become acquainted with a variety of

ASML managers, which we consider very useful in

connection with its talent management and succession-

planning activities.

Meetings of the Supervisory Board
Most Supervisory Board and Committee meetings<br><br>held in 2024 were in person, but the Supervisory<br><br>Board also met virtually on some occasions.<br><br>In addition to plenary discussions, break-out<br><br>sessions in smaller groups were organized for<br><br>discussing key strategic topics to optimize<br><br>interaction. We also used preview videos for meeting<br><br>preparation in addition to written meeting<br><br>documents, to allow as much time as possible for<br><br>discussion.		Supervisory Board meeting attendance overview1
---	---	---	---	---	---	---	---	---
		95%
		Attendance<br><br>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)		7/7	8/8	n/a	5/5	n/a	n/a
	Annet Aris		7/7	n/a	5/5	5/5	5/5	n/a
	Birgit Conix		7/7	8/8	n/a	n/a	n/a	4/4
	Mark Durcan		7/7	n/a	n/a	5/5	5/5	n/a
	Warren East		6/7	7/8	n/a	n/a	5/5	n/a
	Alexander Everke		7/7	n/a	5/5	n/a	n/a	4/4
	Terri Kelly		6/7	n/a	5/5	5/5	n/a	n/a
	Jack de Kreij		7/7	8/8	5/5	n/a	n/a	n/a
	An Steegen		6/7	n/a	n/a	n/a	5/5	4/4
1.This overview contains the attendance data as of the formal date of appointment until the formal end date of the<br><br>appointment.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	123
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Meetings and attendance (continued)

Composition

Supervisory Board skills
Board member						General skills										ASML skills
Nils Andersen (Chair)		•		•		•		•				•						•		•
Annet Aris				•		•		•		•		•		•		•		•
Birgit Conix		•		•						•		•						•		•
Marc Durcan		•		•		•		•				•		•		•		•		•
Warren East		•		•		•		•		•		•		•		•		•		•
Alexander Everke		•		•		•		•		•		•		•		•		•		•
Terri Kelly		•				•		•				•						•		•
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

The Supervisory Board determines the number of

members required to perform its functions – 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 the 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 as well as under Nasdaq

rules, and have completed the annual questionnaire

addressing the relevant independence requirements.

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.

For more information about diversity, read more in Corporate

governance – Other Board-related matters

(Re)appointments in 2024

The appointment terms of Annet Aris, Warren East and

Mark Durcan expired at the 2024 Annual General

Meeting (AGM). The General Meeting resolved to

reappoint Annet Aris for a term of one year. Warren East

and Mark Durcan were appointed by the General

Meeting for four-year terms effective from the date of

the 2024 AGM.

Changes in composition in 2025

At the 2024 AGM, the Supervisory Board gave notice

that the appointment terms of Annet Aris and Birgit

Conix would expire per the 2025 AGM.

Annet Aris has informed the Supervisory Board that she

will not be available for reappointment per the 2025

AGM. Birgit Conix informed the Supervisory Board that

she will be available for reappointment and the

Supervisory Board intends to nominate Birgit Conix for

reappointment per the 2025 AGM.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	124
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Meetings and attendance (continued)

For the position currently held by Annet Aris, the Works

Council has a strengthened recommendation right and

informed the Supervisory Board that it used its

strengthened right to recommend Karien van Gennip for

appointment as member of the Supervisory Board,

effective per the 2025 AGM. The Supervisory Board

intends to follow the Works Council’s recommendation

and nominate Karien for appointment as a member of

the Supervisory Board per the 2025 AGM.

Karien van Gennip is intended to be elected as a

member of the ESG Committee and the Remuneration

Committee upon appointment.

The agenda and explanatory notes for the 2025 AGM

contain further information about the nominations for

(re)appointment of candidates for the Supervisory

Board.

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. The induction program

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 induction program.

In addition to the fixed elements to the induction

program, 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 the plenary meetings and in the meetings of the

Supervisory Board’s committees, as well as during

dedicated educational sessions. During 2024, educational

sessions were held on semiconductor market trends,

semiconductor peers and customers. Deep dives that were

held as part of the formal meetings of the Supervisory Board

and its committees are reported on in the Our activities

2024 section in this Supervisory Board report.

Furthermore, external speakers or advisers attended various

committee meetings to provide outside-in views on topics

such as technology developments and technology outlook

and executive remuneration.

The Supervisory Board also performed site visits, which are

described in other parts of this Supervisory Report in more

detail.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	125
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Meetings and attendance (continued)

Evaluation

		Evaluation<br><br>process 2024
1.<br><br>Self-assessment	2.<br><br>Self-assessment<br><br>process	3.<br><br>Interviews<br><br>with external<br><br>adviser	4.<br><br>Feedback	5.<br><br>Recommendations<br><br>actions
Supervisory Board<br><br>and Selection and<br><br>Nomination<br><br>Committee agree the<br><br>scope, approach and<br><br>broad nature of the<br><br>review.	Evaluation topics:<br><br>• Interaction Supervisory<br><br>Board with Board of<br><br>Management<br><br>• Composition of Board<br><br>and committees<br><br>• Oversight of strategy<br><br>• Stakeholder oversight<br><br>• Risk management<br><br>• Succession planning<br><br>• Meeting quality	The Supervisory Board<br><br>and Board of<br><br>Management members,<br><br>the Company secretary,<br><br>the Head of HR&O and<br><br>the External Auditor are<br><br>interviewed by the<br><br>external advisor and<br><br>complete an online<br><br>survey.	The Supervisory Board<br><br>and Board of<br><br>Management consider<br><br>the outcome of the<br><br>evaluation in separate<br><br>sessions as well as jointly<br><br>and assess the<br><br>effectiveness of its ways<br><br>of working.	New initiatives<br><br>to improve the<br><br>Supervisory Board's<br><br>effectiveness are<br><br>identified and actioned,<br><br>and will form part<br><br>of next year's<br><br>evaluation process.

We greatly value the structural and ongoing evaluation

process as a means of ensuring continuous

improvement in our way 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, the chairs of both the Supervisory Board and

its committees, as well as 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, the evaluation is performed

by means of a self-assessment using a written

questionnaire, followed by one-to-one meetings between

the Chair and individual members.

The 2024 evaluation of the Supervisory Board and its

committees was facilitated by an external adviser. The

evaluation process consisted of interviews with all

Supervisory Board and Board of Management members,

as well as the Company Secretary, the Head of HR&O

and the external auditor. In addition to interviews, a

survey was completed by all interviewees. The

evaluation focused on the interaction of the Supervisory

Board with the Board of Management, following the

change in leadership after the General Meeting of April

2024, and in light of the changing market and

geopolitical realities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	126
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Meetings and attendance (continued)

The results of the Supervisory Board evaluation were

discussed in separate sessions with the Supervisory

Board and the Board of Management at the end of 2024.

In early 2025, a joint session between the Supervisory

Board and the Board of Management session was held

to reflect on the core findings of the evaluation. Finally,

the SB Chair conducted one-to-one meetings with the

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 2024 evaluation was that the

Supervisory Board and its committees continue to

function well. On the key theme of the evaluation, the

interaction between the Supervisory Board and the

Board of Management, the evaluation brought to light a

positive relationship, leading to constructive

discussions, between the Supervisory Board and the

Board of Management following a change in leadership

in both Boards. This creates an opportunity for a higher

quality of interaction between the two Boards. Both

Boards explored jointly the respective role expectations,

how this emerging new reality has started to contribute

to the quality of dialogue and decision making with

respect to core strategic issues that have been

discussed over the last year and how lessons from good

examples could be preserved and new effective

practices could be developed.

The Board of Management evaluated its own functioning

in 2024, focusing on its role, responsibilities and

performance collectively, and on the functioning of the

individual members – also in light of the changes in the

Board of Management that became effective per the

date of 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 of the

evaluation was that the leadership transition was

successful and that ASML continues to have a well-

functioning Board of Management. The functioning of

the Board of Management and its individual members

was also discussed with the Supervisory Board and its

Selection and Nomination Committee.

Aspects addressed by the BoM:
	Strategic focus
	Stakeholder involvement
	People and organization
	Board dynamics
	Board Management organization

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	127
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees

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 the appropriate

decisions.

Further information about the Audit Committee, the ESG

Committee, the Selection and Nomination Committee, and the

Technology Committee can be found in this Supervisory Board

report. Further information about the Remuneration Committee

can be found in the Remuneration report.

	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<br><br>integrity and quality<br><br>of our financial<br><br>reporting and the<br><br>effectiveness of risk<br><br>management and<br><br>controls	Overseeing the ESG<br><br>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<br><br>cooperation with<br><br>the Audit and<br><br>Technology<br><br>Committee	Assisting with the<br><br>preparation of the<br><br>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<br><br>strategy
4	3	4	4	4
Members	Members	Members	Members	Members
Read more on page 128 >	Read more on page 131 >	Read more on page 144 >	Read more on page 134 >	Read more on page 137 >
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	128
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

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)
A key area of<br><br>focus for the Audit<br><br>Committee in 2024<br><br>was how to navigate<br><br>macroeconomic<br><br>and semiconductor<br><br>industry cycles<br><br>while investing<br><br>in future growth.”	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

The Audit Committee is provided with all relevant

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

•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, performance and determining its

compensation

•Overseeing the functioning of Internal Audit

Recurring agenda topics

•Financial update

•Review of the quarterly financial results and press

release

•Accounting and internal control observations of

external auditor

•Risk update, incl. (IT) security

•Internal audit update

•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

Audit Committee meetings in 2024. The CEO, CFO, EVP

Finance, Corporate Chief Accountant, Chief Legal

Officer, Head of Risk and Business Assurance, and

Head of Internal Audit are invited to the meetings.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	129
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

Audit Committee meetings in 2024

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 2024, the Audit

Committee held eight meetings.

Financials

In 2024, 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 also 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 and 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 the developments related to

our customers, and the impact of those developments

on ASML's cash generation. Geopolitical challenges and

in particular the potential impact of increasing export

control restrictions 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 2023

financial year and the interim dividends for the financial

year 2024, which were approved by the Supervisory

Board following recommendation by the Audit

Committee. Extra attention was also paid to free cash

flow, not only during the planned meetings, but also in

two dedicated deep dive sessions planned specifically

for this purpose.

Risk management and internal control

Throughout 2024, 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, such as geopolitics, uncertain

global economy, pressure on the innovation ecosystem

(including security), and strengthening ESG regulations

and related stakeholder expectations. The Audit

Committee oversaw the annual internal control process,

with a focus on scoping, materiality levels, updates to

the internal control framework, the tests 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.

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 reports on the

Ethics program, including the trends and risks in the

area of ethics and the Ethics and Business Integrity

training strategy. The Audit Committee reviewed the

revised Code of Conduct. During 2024, compliance

was discussed on multiple occasions, including on

export controls. An annual update on fraud and fraud

risk management was provided.

Internal audit

In early 2024, the Audit Committee reviewed the internal

audit charter and the annual internal audit plan, including

the scope of the audit. Furthermore, the strategy of the

Internal Audit department was discussed and the Audit

Committee reviewed the audit mapping prepared by

Internal Audit and made some suggestions in relation to

those topics.

During the year, the Audit Committee was kept updated

on the progress of the internal audit activities on a

quarterly basis, 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 the follow-up by the

Board of Management on the recommendations.

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.

Spotlight: Sustainability reporting
Q&A with An Lommers
Head of Risk & Business<br><br>Assurance and Corporate Chief<br><br>Accountant
Q:	How did you take the<br><br>Audit Committee along<br><br>on the implementation of<br><br>the ESRS?
An Lommers: We kept the Audit Committee up-to-<br><br>date throughout 2024 regarding our journey to<br><br>implement the ESRS both during the regular meetings<br><br>and during specific deep dive sessions planned for<br><br>this purpose. Part of the sessions were held jointly<br><br>with the ESG Committee, given the relevance of this<br><br>topic for both committees and since we wanted to<br><br>ensure efficiency in our ESG oversight activities.
Q:	Which subjects did you address in<br><br>relation to sustainability reporting?
An Lommers: A key area of focus was compliance<br><br>with the new requirements. We reported on the<br><br>outcome of the gap analysis and on the progress<br><br>made in addressing and closing these gaps. Much<br><br>attention was also paid to the double materiality<br><br>assessment (DMA) and special deep dives were<br><br>performed on the approach to and process of the<br><br>DMA as well as the outcome of the DMA performed in<br><br>2024.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	130
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

External audit

The overview below provides a number of topics discussed during Audit Committee meetings in 2024,<br><br>in addition to the recurring agenda topics.
	Q1	Q3
	•2023 Annual Report and Financial statements US<br><br>GAAP and EU-IFRS<br><br>•Accounting deep dive: Balance sheet review<br><br>•2023 external audit report<br><br>•Annual reporting process<br><br>•Cash return, including interim dividend Q1 2024<br><br>and final dividend 2023<br><br>•Fraud-risk assessment<br><br>•Results of the external auditor evaluation 2023<br><br>•Results of the Audit Committee self-evaluation<br><br>•Annual plan of Internal Audit<br><br>•External evaluation of Internal Audit	•Statutory Interim Report 2024<br><br>•Cash return, including interim dividend Q3 2024<br><br>•Compliance deep dive: Finance<br><br>•Audit Committee responsibilities in the area of ESG<br><br>•Code of Conduct review<br><br>•Balance sheet review<br><br>•Deep dive: Security
	Q2	Q4
	•2023 SOX plan incl. materiality and scoping<br><br>•External audit plan 2024<br><br>•Audit on expense reporting by the Board of<br><br>Management and Supervisory Board 2023<br><br>•Update Internal Audit Charter<br><br>•Deep dive: ESRS	•Financing<br><br>•Cash return including Q4 2024 interim dividend<br><br>•2024 Annual Report process<br><br>•Long-term financial plan<br><br>•Annual Plan 2025<br><br>•Investor Day messaging<br><br>•Appointment new Head of Internal Audit<br><br>•Internal Audit Plan 2025<br><br>•Compliance, incl. Fraud Risk Assessment<br><br>•External audit update on 'hard close' procedures<br><br>•External auditor transition<br><br>•Review of Rules of Procedure Audit Committee

At the 2022 AGM, KPMG was appointed as the external

auditor for the reporting years 2023 and 2024. On

December 4, 2024, KPMG was appointed by the

Supervisory Board as the external auditor to perform a

limited assurance engagement and issue an assurance

report on the Sustainability statements for the reporting

year 2024.

In 2024, the Audit Committee reviewed the 2024

external audit plan, including scoping, materiality level

and fees. It monitored the progress of the external audit

activities, including review of the observations made

throughout the year. The Audit Committee also oversaw

the activities of KPMG in the area of internal controls,

which were discussed during a periodic internal control

update. The Audit Committee confirms that the

communication over the 2024 financial year contained

no significant items that need to be mentioned in this

report.

The Audit Committee evaluated the performance of the

external auditor at the end of 2024, including a review of

their independence.

After a carefully conducted selection process in 2021

and 2022, the Supervisory Board submitted the proposal

to the 2023 AGM to appoint PricewaterhouseCoopers

Accountants NV (PwC) as external auditor for the

reporting year 2025. This proposal was adopted by the

General Meeting.

During 2024, the external auditor transition from KPMG

to PwC was an important topic of attention for the Audit

Committee. In connection with the transition, the new

external auditor was invited to attend the Audit

Committee meetings in 2024. At the end of the year, an

update was provided to the Audit Committee on the

progress of the transition.

Sustainability reporting

The Audit Committee spent a considerable amount of

time discussing sustainability reporting, in view of

compliance with the ESRS. The Audit Committee

focused on the processes, KPIs and limited assurance

related to sustainability, among other aspects. Some

sessions were held jointly with the ESG Committee.

Other topics

Other topics discussed by the Audit Committee in

2024 included tax developments, including

developments in the area of tax laws, such as their

potential impact on ASML, the responsibilities of the

Audit Committee in the area of ESG and the quarterly

overviews of legal matters. The Audit Committee

furthermore reviewed the messaging around ASML's

long-term financial outlook as was communicated at

ASML's 2024 Investor Day.

The Audit Committee also performed an annual review

and update of its Rules of Procedure.

Following most Audit Committee meetings, the internal

and external auditor each meet with the Audit

Committee without management present to discuss

their views on the matters warranting the attention of

the Audit Committee. This may include their

relationship with the Audit Committee, the relationship

with the Board of Management and any other matters

deemed necessary to be discussed. The Audit

Committee also held regular one-to-one meetings with

the CFO.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	131
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

ESG Committee
	The ESG Committee advises the<br><br>Supervisory Board in carrying out<br><br>its governance and oversight<br><br>responsibilities with regard to<br><br>sustainability, environmental,<br><br>social and governance matters.
	Members
	Birgit Conix (Chair)
During 2024, the ESG<br><br>Committee performed<br><br>various deep dive<br><br>reviews of topics that<br><br>are part of the ESG<br><br>sustainability strategy<br><br>of ASML.”	Alexander Everke
	An Steegen
	The ESG Committee may be supported by external<br><br>experts as well as experts from within ASML who act<br><br>as advisers on the subjects reviewed and discussed.
Birgit Conix
Chair of the ESG Committee

ESG Committee meetings

The ESG Committee meets at least twice a year

and more frequently when deemed necessary.

Main responsibilities

•The ESG sustainability strategy, including the various

sub-themes of the ESG sustainability strategy

•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 and engagement with ASML’s

stakeholders

•The (impact of) external ESG matters and

developments which are 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

President and Chief Executive Officer, the EVP and CFO,

and the Head of ESG Sustainability have a standing

invitation to attend the ESG Committee meetings.

Internal experts and external advisers may also be

invited to attend meetings when deemed necessary.

Advisers do not have voting rights.

ESG Committee meetings in 2024

In 2024, the ESG Committee held four meetings, one of

which was a joint meeting with the Audit Committee.

Topics discussed as standing items in each meeting

were an update on the latest developments in the area

of ESG, the latest feedback from the ESG benchmarks

relevant for ASML as well as the performance on the

ESG KPIs and on the ESG-related targets in the Long-

Term Incentive of the Board of Management and

ASML's senior management.

The ESG Committee discussed the double materiality

assessment, focusing on the process followed as well as

the outcome in terms of impacts, risks and

opportunities. This was done jointly with the Audit

Committee.

The ESG Committee also reviewed and provided the

Supervisory Board with a positive recommendation

regarding the changes to be made to the ESG strategy,

which were approved by the Supervisory Board.

The ESG Committee also received an update on relevant

ESG laws and regulations and paid attention to ESG

compliance, in particular the preparations for

compliance with the ESRS.

During each ESG Committee meeting, a deep dive was

performed on topics related to the themes of the ESG

strategy. Topics that were reviewed in-depth were the

Community Partnership Program, scope 3 supply chain

emissions and the Climate Transition Plan, which was

supported by the ESG Committee and the Supervisory

Board.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	132
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

Spotlight: Scope 3 emissions in our supply chain
Q&A with Wayne Allan
Chief Strategic Sourcing &<br><br>Procurement Officer
Q:	Why was it important to<br><br>discuss scope 3<br><br>emissions in our supply<br><br>chain with the ESG<br><br>Committee?
Wayne Allan: ASML’s ambition is to become<br><br>greenhouse gas neutral for scope 3 upstream supply<br><br>chain emissions by 2030. Our aim was for the ESG<br><br>Committee to understand and support the plan and<br><br>actions defined by ASML’s Strategic Sourcing &<br><br>Procurement team, also because a performance<br><br>target related to this topic was introduced as an LTI<br><br>metric in 2024.
Q:	Can you provide more color to what was<br><br>discussed with the ESG Committee?
Wayne Allan: We explained how we plan to obtain<br><br>emission reduction commitments from our tier 1<br><br>suppliers and to identify key decarbonization levers<br><br>beyond these tier 1 suppliers. We also focused on<br><br>opportunities for cross-company and cross-industry<br><br>collaboration. In this context, the initiatives related to<br><br>supplier data sharing and collection were also<br><br>reported on.			Supervisory activities in the area of ESG sustainability
---	---	---	---	---	---	---
			Supervisory Board
		Oversight over overall company strategy aimed at<br><br>sustainable long-term value creation and company<br><br>performance, including ESG aspects
	Audit<br><br>Committee	ESG<br><br>Committee		Remuneration<br><br>Committee	Selection and<br><br>Nomination<br><br>Committee	Technology<br><br>Committee
	Non-financial<br><br>reporting, ESG<br><br>internal controls<br><br>and assurance	Oversight over<br><br>ESG strategy<br><br>(execution) &<br><br>performance		ESG metrics as<br><br>part of executive<br><br>remuneration	Corporate<br><br>governance<br><br>leadership<br><br>development &<br><br>succession<br><br>including<br><br>diversity	Product &<br><br>technology<br><br>roadmap-related<br><br>ESG matters/<br><br>programs (e.g.<br><br>EUV energy<br><br>efficiency)

Supervisory activities in the area of ESG sustainability

The overview on this page shows how the oversight over

ESG matters by the Supervisory Board has been divided

over the Supervisory Board and the sub-committees of

the Supervisory Board. During 2024, one year after the

establishment of the ESG Committee, the allocation of

ESG oversight-related activities was reassessed and

some minor fine-tuning was applied.

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	133
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

The overview below provides details on the topics discussed during<br><br>ESG Committee meetings in 2024.
	Q1	Q3
	•Performance on ESG LTI targets and ESG LTI<br><br>metrics and targets 2024–2026, and<br><br>recommendation to the Remuneration Committee<br><br>•Progress on ESG sustainability KPIs<br><br>•Feedback on ESG benchmarks<br><br>•ESG compliance: update on ESRS<br><br>•Deep dive: Supply chain emissions (scope 3<br><br>upstream)	•Progress on ESG sustainability KPIs<br><br>•Performance on LTI targets<br><br>•Double Materiality Assessment 2024<br><br>•Feedback from ESG benchmarks<br><br>•Update on laws and regulations<br><br>•Climate roadmap<br><br>•Deep dive: Community Partnership Program
	Q2	Q4
	•No meetings	•ESG strategy update<br><br>•Progress on ESG sustainability KPIs<br><br>•Performance on ESG LTI targets<br><br>•Proposal new ESG LTI metrics and targets for<br><br>2025–2027<br><br>•Feedback from relevant benchmarks and update<br><br>on selection of benchmarks<br><br>•ESG compliance: update on ESRS<br><br>•Deep dive: Climate Transition Plan

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	134
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

Selection and Nomination Committee
	The Selection and Nomination<br><br>Committee assists the<br><br>Supervisory Board in relation to<br><br>its responsibilities over the<br><br>composition and functioning of<br><br>the Supervisory Board and the<br><br>Board of Management and the<br><br>monitoring of corporate<br><br>governance developments.
	Members
	Nils Andersen (Chair)
In 2024, the Selection<br><br>and Nomination<br><br>Committee's key<br><br>area of focus<br><br>was ASML's<br><br>leadership transition.”	Annet Aris
	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

Main responsibilities

•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

•Monitoring and discussing developments in corporate

governance

Recurring agenda topics

•Role, composition and functioning of the Board of

Management

•Role, composition and functioning of the Supervisory

Board

•Corporate governance

Attendance

The Selection and Nomination Committee held five

meetings in 2024. In addition to the Selection and

Nomination Committee members, the President and

CEO and the EVP HR&O are regularly invited to attend

(parts of) its meetings. An external adviser is also invited

to attend the Selection and Nomination Committee

meetings when deemed necessary.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	135
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

Composition, role and responsibilities of the Board

Spotlight: Leadership transition
Q&A with Annet Aris
Vice Chair Supervisory Board<br><br>and member of Selection and<br><br>Nomination Committee
Q:	How do you look back<br><br>on the leadership<br><br>transition that took<br><br>place in 2024?
Annet Aris: The Selection and Nomination<br><br>Committee spent significant time and effort preparing<br><br>for the leadership change in close collaboration with<br><br>the outgoing leadership and the new Board of<br><br>Management. The transition itself was a smooth<br><br>process that took place in the spirit of ASML's values<br><br>challenge, collaborate and care. The new leadership<br><br>team has been well received by our stakeholders,<br><br>including our ASML employees.
Q:	How are you supporting the new Board<br><br>of Management?
Annet Aris: As a Supervisory Board, we continue to<br><br>stay in close contact with the Board of Management<br><br>to act as their sounding board and provide advice if<br><br>and when needed. We do this not only during the<br><br>formal meeting of the Supervisory Board, but also<br><br>during informal interactions with the members of the<br><br>Board of Management throughout the year. The<br><br>Supervisory Board continues to be convinced that<br><br>with the new leadership team, ASML is well<br><br>positioned to continue our long-term success.

of Management

In 2024, the Selection and Nomination Committee's key

area of focus was ASML's leadership transition. Per the

2024 AGM, both Presidents – Peter Wennink and Martin

van den Brink – stepped down as Board of Management

members. Christophe Fouquet was appointed as

President and CEO. Jim Koonmen was appointed as

EVP and Chief Customer Officer. The Selection and

Nomination Committee devoted significant time to

supporting the Board of Management in transitioning to

the new leadership structure and evaluating the

transition. We are pleased to see that this has been a

smooth process.

The Selection and Nomination Committee and the

Supervisory Board regularly discuss the composition,

role and responsibilities of the Board of Management,

while also discussing succession planning with respect

to the Board of Management. The Supervisory Board,

together with the Board of Management, has gone

through a comprehensive succession-planning process.

With Christophe, we have identified a very experienced

leader with deep understanding of ASML’s technology

and the semiconductor industry ecosystem – acquired

through different roles at ASML and other companies –

and the right leadership qualities and culture fit.

With the appointment of Jim Koonmen as Chief

Customer Officer, a new position in ASML’s Board of

Management per the 2024 AGM, ASML underscored its

ambition to continuously increase our responsiveness to

customer needs, and to consistently deliver high-

performance products and services.

During 2024 we also reviewed the talent bench and

discussed career development of top talent to prepare

for future Board of Management roles. The relevant

diversity aspects for ASML have also been taken into

consideration in this review.

The Selection and Nomination Committee also assessed

the functioning of the Board of Management and its

individual members. Special attention was made to the

functioning of the Board of Management in light of the

leadership transition. For this purpose, discussions took

place with each individual Board of Management

member, the outcome of which was discussed with the

Selection and Nomination Committee.

After the retirement of Martin van den Brink as Co-

President, Martin continued to support the future growth

of ASML by taking up a role as technology adviser.

Composition, role and responsibilities of the

Supervisory Board

The Selection and Nomination Committee spent a

significant amount of 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

was reviewed in light of the long-term strategic

challenges faced by ASML and what these mean for the

oversight to be performed by the Supervisory Board.

While the conclusion was that the requirements for the

size of and the competencies to be represented in the

Supervisory Board were generally still appropriate, some

adjustments were considered desirable. Furthermore,

the paragraph on diversity was shortened, since a

separate Supervisory Board D&I Policy was adopted in

light of the revised Dutch Corporate Governance Code.

The profile of the Supervisory Board was formally

amended in 2024, after informing the Works Council of

ASML Netherlands BV and the General Meeting. The

revised profile can be found in the Supervisory Board's

Rules of Procedure on our website.

The Selection and Nomination Committee also

discussed changes to the composition of the

Supervisory Board effective per the 2024 AGM. The

Selection and Nomination Committee advised the

Supervisory Board on the nominations for the

reappointment of Annet Aris, Warren East and Mark

Durcan, whose terms expired during the 2024 AGM. All

Supervisory Board members whose terms ended per the

2024 AGM were reappointed by the General Meeting for

consecutive terms, in line with the nomination made by

the Supervisory Board.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	136
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

A significant amount of time was also spent by the Selection

The overview below provides details on the topics discussed during Selection and Nomination Committee<br><br>meetings in 2024.
	H1	H2
	•Board of Management composition, succession<br><br>and leadership transition<br><br>•Board of Management performance review<br><br>•Profile and composition of Supervisory Board and<br><br>composition of its committees<br><br>•Outcome 2023 Supervisory Board evaluation and<br><br>its committees and follow-up<br><br>•ASML leadership succession potential, incl.<br><br>diversity aspects<br><br>•Corporate governance developments<br><br>•Update to Rules of Procedure Supervisory Board<br><br>and Board of Management<br><br>•Update of the Supervisory Board profile<br><br>•Composition of the Board of Directors of the ASML<br><br>Preference Shares Foundation	•Composition of the Board of Management<br><br>•Composition of Supervisory Board, including<br><br>succession<br><br>•Process Supervisory Board evaluation 2024<br><br>•Process Board of Management evaluation 2024<br><br>•Corporate governance developments

and Nomination Committee on the changes to the

Supervisory Board composition per the 2025 AGM, in

particular the succession of Annet Aris. Given that the

Works Council of ASML Netherlands BV has a strengthened

right of recommendation for this position, the Selection

and Nomination Committee worked closely with the Works

Council to find the right candidate to succeed Annet.

Changes to Supervisory Board committees in 2024

The Selection and Nomination Committee also

discussed the composition of the Supervisory Board

committees. As per January 2024, Nils Andersen joined

the Audit Committee as a formal member.

Read more in Supervisory Board report – Meetings and attendance

– Composition

The Selection and Nomination Committee also spent a

considerable amount of time preparing the 2024

evaluation of the Supervisory Board. In light of the

applicable best practice provision of the Dutch

Corporate Governance Code, the Selection and

Nomination Committee made a recommendation to

engage an external party for an in-depth evaluation of

the Supervisory Board, and the subsequent selection

process was driven by the Committee. The 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.

Read more in Supervisory Board report – Meetings and attendance

– Evaluation

Corporate governance

As part of its responsibility to monitor corporate

governance developments, the Selection and

Nomination Committee provided positive

recommendations to the Supervisory Board regarding

updates to the Rules of Procedure for the Board of

Management and the Supervisory Board. These

changes were primarily recommended in light of the

changes in the Board of Management that became

effective in 2024. The Committee also 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	137
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

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 2024, the<br><br>Technology<br><br>Committee visited<br><br>ASML's facility in<br><br>Berlin, Germany.”	Annet Aris
	Warren East
	An Steegen
	The Technology Committee is supported by external<br><br>experts as well as experts from within ASML who act<br><br>as advisers on the subjects reviewed and discussed.<br><br>External experts may include representatives of<br><br>customers, suppliers and partners to increase the<br><br>Committee’s understanding of the technology<br><br>and research required to develop our leading-edge<br><br>systems.
Mark Durcan
Chair of the Technology Committee

Technology Committee meetings in 2024

In general, the Technology Committee meets at

least twice a year and more frequently when deemed

necessary. In 2024, the Technology Committee held

five meetings.

Main responsibilities

•Advising on technology trends, the study of potential

alternative strategies, the technology strategy, product

roadmaps, required technical resources and

operational performance in 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 as well as the

achievements related to these, 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 committee meetings. Advisers do not have

voting rights.

Review of technology programs

As in previous years, the Technology Committee’s

primary focus in 2024 was on the review of the

execution and implementation of technology programs

and roadmaps in EUV 0.55 NA (High NA), EUV 0.33 NA,

DUV and Applications. 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- 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 Applications. The Technology Committee was

presented with a recap of the achievements in 2023,

the strategic priorities, the execution challenges, the

competitive landscape and the opportunities in that

respect and the growth projection toward 2030 over

the different areas within the Applications landscape.

In addition, updates were provided on computational

lithography, optical metrology and e-beam metrology.

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

Development and Engineering department of ASML,

including its Research department and System

Engineering department. The Technology Committee

was informed on how these departments play a pivotal

role in the innovation process and how they work

together in the technological developments within

ASML. Furthermore, the different departments provided

an in-depth view on their portfolio and internal

organization structure.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	138
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board committees (continued)

The overview below provides details on the topics discussed during Technology Committee<br><br>meetings in 2024.
	Q1	Q3
	•Review of Applications<br><br>•Technology Leadership Index performance review<br><br>2023 and 2021–2023 and target-setting for 2024<br><br>and 2024–2026<br><br>•Applications overview<br><br>•E-beam metrology<br><br>•Computational lithography<br><br>•Optical metrology including soft x-ray<br><br>•Data management<br><br>•Innovation process<br><br>•System engineering<br><br>•Development and engineering<br><br>•Succession planning	•Technology Index Update<br><br>•0.33 NA – business, product and program<br><br>•0.55 NA – business, product and program<br><br>•Common EUV platform and potential products<br><br>including positioning and rationale, optics roadmap<br><br>and technology common platform<br><br>•Profile and potential Technology Committee<br><br>external advisers
	Q2	Q4
	•Innovation process including role of research,<br><br>System engineering and D&E<br><br>•Research<br><br>•System engineering<br><br>•Development and engineering<br><br>•Succession planning Technology organization	•Review of DUV business<br><br>•Device roadmap and holistic lithography solutions<br><br>•Profile and potential Technology Committee<br><br>external advisors<br><br>•Visit to ASML's facility in Berlin, Germany		Spotlight: Visit to ASML Berlin GmbH
---	---
Q&A with Markus Matthes
Chair ASML Berlin GmbH<br><br>Management Team
Q:	What was the key<br><br>objective of the ASML<br><br>Berlin GmbH leadership<br><br>team for the Technology<br><br>Committee visit?
Markus Matthes: Our aim was to provide the<br><br>Technology Committee with information about the<br><br>organization and key activities of ASML Berlin GmbH<br><br>and their contribution to ASML as a whole.
Q:	What topics did you discuss with the<br><br>Technology Committee?
Markus Matthes: We gave an overview of the<br><br>people, products and processes and updated the<br><br>Technology Committee about campus development.<br><br>On the product side, we focused on the key<br><br>components that are developed and produced in<br><br>Berlin, including wafer tables and clamps, reticle<br><br>chucks and mirror blocks.
Q:	How do you look back on the Technology<br><br>Committee visit to ASML Berlin GmbH?
Markus Matthes: It was very valuable to interact with<br><br>the Technology Committee during their visit to ASML<br><br>Berlin GmbH and to exchange perspectives on the<br><br>important work that we are doing and on how ASML<br><br>Berlin GmbH contributes to ASML's overall<br><br>technology and manufacturing network.

The Q3 meeting was fully dedicated to the EUV 0.55 NA

(High NA), EUV 0.33 NA business. The Technology

Committee was informed on the product roadmap, the

productivity improvements and the developments on the

cost of technology. In addition, there was a deep dive on

the drive for commonality. The Technology Committee

discussed the positioning and rationale thereof.

Furthermore, time was spent on the targets, status and

plans in this respect.

In Q4, the Technology Committee visited ASML’s facility

in Berlin, Germany. During this two-day meeting, the

Technology Committee primarily focused on the

achievements and challenges in ASML’s DUV business.

Special attention was paid to the overall strategy, market

developments and positioning and the technology

roadmap. As a second topic, special attention was paid

to the device roadmap and the holistic lithography

solutions. For that purpose, the Technology Committee

invited imec again to provide an update of its view on

the long-term device roadmap for both Logic and

Memory. The second day of the visit to Berlin was

focused on providing insight in the projected growth of

the Berlin facility and how the facility in Berlin

contributes to ASML’s overall technology and

manufacturing network. Furthermore, the Technology

Committee was provided with a tour through the

cleanroom at the Berlin facility.

The Technology Committee’s in-depth technology

discussions and the subsequent reporting of the main

points of these discussions 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	139
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Financial statements and profit allocation

The Financial statements of ASML for the financial year

2024, as prepared by the Board of Management, have

been audited by KPMG Accountants N.V. All members

of the Board of Management and the Supervisory Board

have signed these Financial statements.

We recommend to shareholders that they adopt the

2024 Financial statements. We also recommend that our

shareholders adopt the Board of Management’s

proposal to make a final dividend payment of €1.84 per

ordinary share. Together with the interim dividends paid

in respect of the 2024 financial year, which add up to

€4.56 per ordinary share, this leads to a total dividend of

€6.40 per ordinary share for the year 2024.

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

challenging year.

The Supervisory Board:

Nils Andersen, Chair

Annet Aris, Vice Chair

Birgit Conix

Mark Durcan

Warren East

Alexander Everke

Terri Kelly

Jack de Kreij

An Steegen

Veldhoven, March 5, 2025

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	140
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Message from the Chair of the

Remuneration Committee

Terri Kelly

2024 was another year of steady

We aim for<br><br>ASML’s<br><br>remuneration<br><br>policies to be<br><br>externally<br><br>competitive and<br><br>internally fair.”
Terri Kelly
Chair of the Remuneration Committee

evolution. Our Remuneration

Committee worked hard to ensure

that ASML’s remuneration policies

remained competitive and aligned

with company strategy, while also

taking into consideration the views

and priorities of stakeholders.

Dear Stakeholder,

On behalf of the Remuneration Committee, I

am pleased to present the 2024

Remuneration Report, which outlines how

the remuneration policies for the Board of

Management and the Supervisory Board

were applied during the year and explain the

factors we considered while doing so.

A long-term perspective

Just as ASML’s focus is on the long term, so

is the focus of our Remuneration Committee.

We work closely with the Board of

Management, the Works Council and other

key stakeholders to ensure that our

remuneration policies are competitive,

aligned with ASML’s strategy and take into

consideration the views and priorities of

stakeholders, while respecting the societal

context within which we operate.

ASML’s values of challenge, collaborate

and care sit front and center in everything

that the Remuneration Committee does.

We challenge ourselves about all aspects

of remuneration and collaborate with

colleagues within ASML as well as external

experts and advisers. Our aim is to arrive at

fair and balanced decisions that drive long-

term performance.

2024 performance

In 2024, ASML performed very well on the

metrics that are part of the Board of

Management’s incentive plans. For the

short-term incentive (STI), performance was

between target and stretch for all

performance measures – EBIT Margin %,

Customer Orientation and Technology

Leadership Index – resulting in an overall

pay-out of 136.1% of target. For the long-

term incentive (LTI) 2022–2024 series, ASML

exceeded target on most the performance

metrics – Relative Total Shareholder Return

(rTSR), Cash Conversion Rate, Technology

Leadership Index and ESG. The overall LTI

result is a vesting of 132.3% of target.

Key workstreams

Our core objective is to ensure that ASML

continues to be able to attract and retain the

talent it needs to thrive. During 2024, we

focused on a number of areas in order to

ensure that the Remuneration Policy for the

Board of Management features the right

amount of stretch, while being achievable

and aligned with desired behaviors and the

main drivers of ASML’s strategy.

In the second half of 2024, in line with the

framework for the 2023 Supervisory Board

Remuneration Policy, the Remuneration

Committee reviewed the Supervisory

Board’s fee structure and levels. Following

this review, the Supervisory Board proposes

to increase base membership and

committee fees and remove the fixed

expense allowance, and a proposal in this

regard has been submitted for a binding

vote at the 2025 AGM.

Updating our Policy

Much of the year’s efforts were

concentrated on updating the Remuneration

Policy for the Board of Management, which

has been submitted to the 2025 AGM.

In light of the change of leadership, this was

a significant workstream for the committee

through 2024 and involved extensive

consultations with both external and internal

stakeholders, including valuable input from

the Board of Management and the Works

Council as well as from investors and

shareholder interest organizations.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	141
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Message from the Chair of the Remuneration Committee (continued)

Terri Kelly

Our work has been characterized by evolution rather

than revolution. As ASML evolves over time, our policies

are constantly monitored and assessed against the

Company’s strategic objectives and in the context of the

broader commercial landscape. The Policy review and

proposed adjustments are intended to make incremental

progress toward a more competitive and fit-for-future

Remuneration Policy. Its aim is to better enable ASML to

attract, retain and motivate the global leadership

structure that will be critical in delivering on our strategy

and growth ambitions.

While the Remuneration Policy for the Board of

Management is in absolute terms only relevant to a small

number of people, we understand that it has resonance

across ASML. It must be recognized as fair within

the company and our local external environment,

competitive within our global peer group and aligned

with the wider workforce. I believe we have achieved

a balanced outcome that respects the views of our

stakeholders, underlining our desire to achieve a degree

of societal fairness.

Evolving our metrics

Last year, I reported that we developed a way of

measuring our customer orientation, and this process

was successfully implemented into the STI during 2024.

Meeting, and where possible exceeding, customer

expectations is extremely important to the company's

growth targets, and the new metric ensures that the

voice of the customer is even better heard and acted

upon by the Board of Management.

ESG was another area where we spent considerable

time. I am proud that ASML has continued to hold its

ground on measures that really matter to the world, at a

time when some companies perhaps reduced some of

their focus on ESG matters. We made good progress

and now benefit from a well-designed balance of social

and environmental measures. For example, we are

challenging our suppliers to manage their own footprint,

while also exploring how we can reduce our own energy

consumption as well as that of our customers.

We constantly review the financial measures that are at

the heart of our incentive plans and have reintroduced

elements of Return on Average Invested Capital (ROAIC)

as a metric to measure how we drive the creation of

long-term sustainable value. We had previously moved

away from ROAIC, because of the extremely long

horizons associated with R&D investments, and because

the timing of return on those investments did not align

with the measurement period of the ROAIC metric. The

Remuneration Committee devised a novel way to bring

ROAIC back into the picture aimed at mitigating the

effects of the timing differences related to the return on

investment, and I was pleased to see that this was well

received by our stakeholders during 2024.

Engaging with our stakeholders

We aim for ASML’s remuneration policies to be

externally competitive and internally fair – and we

engage with a wide range of stakeholders who provide

us with their views, helping us achieve this ambition.

There are several instances where stakeholder input has

led to adjustments in our policies. For example,

stakeholder feedback was instrumental in our decision

to no longer use a particular index, but instead work with

customized, more relevant measures linked to our ESG

strategy to assess ESG performance.

Externally, we consult our investors and also take advice

from our external adviser around best practice and

trends in the field of remuneration across a broad

selection of industries and business environments.

As ASML has few comparable companies against which

we can compare our approach to remuneration, we

focus on the pay landscape of similar-sized, globally

active, semiconductor (equipment), high-tech or other

companies with high R&D spend.

Internally, we maintain a close relationship with the

members of the Board of Management, meeting

regularly on an informal as well as a formal basis.

Interaction with the Works Council also provides us with

valuable insights from an important stakeholder group –

our employees. Early in 2024, a new Council was

elected and we invested time in bringing the new

members up to speed with the mechanics of

remuneration and the methodology behind it – and I

believe that this process was very beneficial for all

parties involved.

Throughout the year, we engaged with key stakeholders

about the envisaged policy changes we are proposing

and listened to their feedback. A number of their

suggestions have been incorporated into the policy that

has been submitted to the 2025 AGM for approval.

Changes to the Committee

Annet Aris will be stepping down from the Supervisory

Board effective per the 2025 AGM and I would like to

thank her for her support and guidance over recent

years. Annet has been a member of the Remuneration

Committee between 2015 and 2018 and since 2021, and

she has played an instrumental role, given her extensive

knowledge and experience on the topic of remuneration

as well as her connections with the relevant

stakeholders in this field.

As a Remuneration Committee we are very pleased with

the nomination for appointment of Karien van Gennip as

member of our Supervisory Board. Upon her

appointment, which is a voting item on the agenda for

the 2025 AGM, Karien will become a member of the

Remuneration Committee.

Outlook

Our focus for 2025 will firstly be on gathering further

input from stakeholders and where appropriate fine-

tuning the Board of Management Remuneration Policy

ahead of its presentation at the 2025 AGM.

Beyond that, we will continue to challenge ourselves on

the metrics and ask the question: do we have the right

measures that really align around the most important

things that ASML is trying to achieve? Stakeholder

support will again be a key objective, and our continual

engagement processes will aim to make sure that all our

stakeholders – and most especially Christophe and his

colleagues on the Board of Management – understand

our challenges, our aims and our rationale.

Finally, I would like to thank all our stakeholders, and in

particular the members of the Remuneration Committee,

the Supervisory Board, the Board of Management, our

investors and the Works Council, for their support over

the last year. This is a team effort – together, we can

ensure that our remuneration policies continue to drive

the long-term success of ASML.

Terri Kelly

Chair of the Remuneration Committee

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	142
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Remuneration at a glance

Remuneration is an essential tool 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 in<br><br>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 policy and incentives focus on sustainable and long-term value<br><br>creation.
Compliance	We adopt the highest standards of good corporate governance.
Simplicity and<br><br>transparency	Our policy and its execution are as simple as possible and easily<br><br>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 to<br><br>new limits		Deepen<br><br>customer trust	Strategic value drivers	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
			Leadership in<br><br>ESG sustainability
		Deliver on our ESG<br><br>sustainability<br><br>mission and<br><br>responsibilities				How we performed in 2024
---	---	---	---
Financial (based on US GAAP)			Non-financial
€28.3bn	€14.5bn	€9.0bn	8.0
Total sales	Gross profit	Income from operations	Technology Leadership<br><br>Index score
(2023: €27.6bn)	(2023: €14.1bn)	(2023: €9.0bn)	(2023: 7.8)
€11.2bn	€19.25	€12.7bn	78.9%
Net cash provided by<br><br>operating activities	Earnings<br><br>per share	Cash and cash<br><br>equivalents and short-<br><br>term investments	Employee engagement<br><br>score (three-year rolling<br><br>average)
(2023: €5.4bn)	(2023: €19.91)	(2023: €7.0bn)	(2023: 78.7%)

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	143
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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 by<br><br>stretching performance targets.
	€20.1m
	Total remuneration1
	136.1%
	Achieved of STI target
	132.3%
	Achieved of LTI target
	40:1
	CEO vs. average per FTE		Board of Management1
---
Christophe D. Fouquet2
Total remuneration 2024 (€’000s)
€5,432
Frédéric J.M. Schneider-Maunoury
Total remuneration 2024 (€’000s)
€4,209
Roger J.M. Dassen
Total remuneration 2024 (€’000s)
€4,190
Wayne R. Allan
Total remuneration 2024 (€’000s)
€3,897
James (Jim) P. Koonmen3
Total remuneration 2024 (€’000s)
€2,347

1.This is the total 2024 remuneration for the members of the Board of Management (BoM) in office as of December 31, 2024. It excludes the

2024 remuneration for former BoM members Peter T.F.M. Wennink and Martin A. van den Brink, who retired as Presidents of ASML on

April 24, 2024, upon the completion of their appointment terms.

2.Christophe D. Fouquet was appointed as President and CEO of ASML on April 24, 2024. As he was already a member of the Board of

Management (BoM), his total remuneration for 2024 is disclosed by taking into account his tenure as both a regular BoM member and as

President and CEO of ASML.

3.James (Jim) P. Koonmen was appointed as a member of the Board of Management on April 24, 2024. His total remuneration 2024 is

disclosed as of this date.

Remuneration summary (€’000s)

| Base salary and benefit | STI | LTI | | --- | --- | --- || Stakeholder engagement in 2024 | | | --- | --- | | During 2024, we consulted with our large<br><br>shareholders and other stakeholders, as well as<br><br>with our Board of Management. Engagements<br><br>took place prior to the 2024 AGM and in Q3 and<br><br>Q4 2024. | | | Shareholders | | | Number of organizations met | 9 | | Number of meetings | 18 | | Percentage of issued share capital owned4 | 23% | | Shareholders representatives<br><br>and proxy advisers | | | Number of organizations met | 3 | | Number of meetings | 9 | | Works Council | | | Number of organizations met | 1 | | Number of meetings | >5 |

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

at the time of the AGM record date, March 27, 2024.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	144
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Remuneration Committee

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 Board<br><br>of Management and the<br><br>Supervisory Board.
	Members
	Terri Kelly (Chair)
During 2024, the<br><br>Committee continued<br><br>looking at what the<br><br>optimal incentive<br><br>measures are to drive<br><br>sustainable long-term<br><br>value creation.”	Annet Aris
	Alexander Everke
	Jack de Kreij
	Each member is an independent, non-executive<br><br>member of our Supervisory Board in accordance with<br><br>the Nasdaq Listing Rules. Ms. Kelly is neither a former<br><br>member of our Board of Management, nor a member<br><br>of the management board of another company.<br><br>Currently, no member of the Remuneration<br><br>Committee is a member of the management board of<br><br>another Dutch listed company.
Terri Kelly
Chair of the Remuneration Committee

Main responsibilities

•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 incentive

measures in attracting and retaining top talent

Recurring agenda topics

•Remuneration of the Board of Management

•Remuneration of the Supervisory Board

•Update on performance on targets for short- and long-

term incentive

Attendance

In addition to the Remuneration Committee members,

the Remuneration Committee generally invites the CEO,

the CFO, the Executive Vice President HR&O, and the

Vice President Global Compensation and Benefits

to attend its meetings. The Remuneration Committee’s

external adviser is also invited to attend the

Remuneration Committee meetings when deemed

necessary.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	145
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Remuneration Committee (continued)

Remuneration of the Board of Management

Following the announcement of the change in the

composition of the Board of Management, in particular

the change from a dual-presidency to a single-

presidency structure, the Remuneration Committee

assessed the impact of such change on the

remuneration structure for our President and CEO under

the Remuneration Policy for the Board of Management

(version 2022). The conclusion was that no concessions

were to be made to the 2022 Policy and that a detailed

review of the Policy for 2025 and beyond would be

initiated.

Following a fundamental review performed in the second

half of 2021 and the first quarter of 2022, a new

Remuneration Policy for the Board of Management was

adopted at the 2022 AGM with 93.18% support. The

2022 Board of Management Remuneration Policy

contains market-competitive maximum levels for the STI

(120% for the President and 100% for the other Board

of Management members) and below-market-

competitive maximum levels for the LTI (200%) for on-

target performance. The Supervisory Board decided to

implement a phased approach toward these maximum

levels.

At the end of 2023 a light review of Board of

Management remuneration levels was performed in

order to determine whether an increase of the on-target

levels for STI and/or LTI toward the policy maximum

levels was warranted. The Supervisory Board concluded

that this was the case and, given the new single

President structure, decided to increase the on-target

levels for the STI from 105% to 120% for the new

President and CEO, and from 95% to 100% for the non-

Presidents, and to keep the level unaltered (105%) for

both retiring Presidents. For the LTI the on-target levels

were increased from 170% to 200% for the President

and CEO, and from 170% to 180% for the other Board

of Management members. These changes became

effective per January 1, 2024.

The Remuneration Committee made recommendations

to the Supervisory Board concerning the total

remuneration package of the Board of Management and

the variable remuneration consisting of an STI in cash

and an LTI in shares. The Remuneration Committee

proposed 2024 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 2024 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.

2024 has been marked by efforts to update the

Remuneration Policy for the Board of Management.

Extensive consultations were held with both internal and

external stakeholders, whereby the ambition of the

Remuneration Committee was to come to a balanced

outcome that is externally competitive and internally fair.

The proposed 2025 Remuneration Policy for the Board

of Management has been submitted for a binding vote at

the 2025 AGM. Upon AGM approval and following the

Remuneration Committee's recommendation, the

Supervisory Board approved to increase base salaries

with 4% and increase the on-target level for the STI

2025 of the President and CEO to 150% and 110% for

the other Board of Management members. For the LTI

2025–2027, the on-target level for the President and

CEO is increased to 275% and 225% for the other

Board of Management members.

If the proposed 2025 Remuneration Policy for the Board

of Management is not adopted by the 2025 AGM, on-

target STI 2025 levels will be in line with 2024 and LTI

2025–2027 on-target levels will amount to 200% for all

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 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 2024 and LTI Plan

2022–2024.

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 2024 we made further efforts to

improve the transparency and readability of the

Remuneration Report. For example, we added an extra

scenario to the table 'Performance-driven scenarios'.

Remuneration of the Supervisory Board

In the second half of 2024, 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 proposes to increase

base membership and committee fees and remove the

fixed-expense allowance. A proposal in this regard has

been submitted for a binding vote at the 2025 AGM.

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 fairness of executive

remuneration in relation to non-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 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. The CEO's pay progression was below the 75th

percentile of the group, while the progression of the

lowest scale of ASML's Collective Labor Agreement

(CLA) outpaced that of the benchmarking group.

Additionally, the 2023 increases in Supervisory Board

remuneration were in line with the benchmarking group.

More details can be found in the 2023 Remuneration

Report.

The outcomes of the 2023 societal benchmark have

been taken into account for both the proposed Board of

Management Remuneration Policy 2025 and the

proposed Supervisory Board fees 2025.

The Remuneration Committee intends to perform this

societal benchmark periodically going forward to serve

as a reference for overall remuneration.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	146
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Remuneration Committee (continued)

The below overview provides details on the topics discussed during<br><br>Remuneration Committee meetings in 2024.
	Q1	Q3
	•Total Board of Management remuneration 2024,<br><br>including base salary 2024, and STI and LTI at-<br><br>target levels<br><br>•Short-Term Incentive Plan: Performance 2023, pay-<br><br>out 2023 and targets 2024<br><br>•Long-Term Incentive Plan: Performance evaluation<br><br>and share vesting performance period 2021–2023,<br><br>and conditional grant and targets performance<br><br>period 2024–2026<br><br>•Compliance with share ownership requirements<br><br>•Remuneration Report 2023<br><br>•Self-evaluation of Remuneration Committee<br><br>•Kick-off Board of Management Remuneration<br><br>Policy review	•Progress STI 2024 and running LTI plans<br><br>•Proposed changes to the Board of Management<br><br>Remuneration Policy<br><br>•Latest AGM voting trends<br><br>•Board of Management peer group and<br><br>benchmarking review<br><br>•Double taxation compensation Wayne Allan<br><br>•Supervisory Board Remuneration Policy<br><br>benchmark
	Q2	Q4
	•Board of Management contracts<br><br>•Update on AGM<br><br>•Board of Management Remuneration Policy review	•Progress STI and LTI targets<br><br>•Board of Management remuneration 2025, including<br><br>base salary, at-target levels for STI and LTI,<br><br>selection of STI and LTI metrics, and target levels<br><br>•Supervisory Board remuneration benchmark and<br><br>resulting proposal for change<br><br>•Engagement of external auditor for agreed-upon<br><br>procedures on remuneration<br><br>•Draft Remuneration Report 2024<br><br>•Share planning for the period AGM 2025–2026<br><br>•Compliance of Board of Management members<br><br>with share ownership requirements

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	147
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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 29, 2022, and

has applied as of January 1, 2022. We are

also referencing the changes if the new

remuneration policy is adopted in the AGM.

It also contains information about the

execution of the policy as well as details of

the Board of Management members’ actual

remuneration for the financial year 2024.

The current policy and the proposed new

policy can be found in the Governance

section of our website.

Remuneration Policy

Remuneration as a strategic instrument

The 2022 Remuneration Policy for the Board of

Management supports the strategy, long-term interests

and sustainability of ASML in a highly dynamic

environment, while aiming to fulfill all stakeholders’

requirements and keeping an acceptable risk profile.

More than ever, our challenges are to drive technology,

to serve our customers and to satisfy our stakeholders –

drivers embedded in our identity, mission and values

and the backbone of the 2022 Remuneration Policy for

the Board of Management. The Supervisory Board

ensures that the 2022 Remuneration Policy for the Board

of Management and its implementation are linked to our

objectives. A direct way this is achieved is by

determining performance measures and setting targets

with respect to variable compensation that are linked to

our short- and long-term ambitions.

More indirectly, we want to ensure that our 2022

Remuneration Policy for the Board of Management

enables us to attract, motivate and retain qualified

industry professionals for the Board of Management

in order to define and achieve our strategic goals. This

is reflected by our drive to determine a remuneration

structure and remuneration levels that intend to be

closer to competitive levels in the relevant labor market,

while being aware of societal trends and perception.

Therefore, the 2022 Remuneration Policy for the Board

of Management acknowledges the internal and external

context as well as our business needs and long-term

strategy.

The Remuneration Policy for the Board of Management

is designed to encourage behavior that is focused on

long-term value creation and the long-term interests and

sustainability of ASML, while adopting the highest

standards of good corporate governance. It is aimed at

motivating the Board of Management members to

achieve outstanding results, using a combination of non-

financial and financial performance measures as well as

an appropriate ratio between base salary and variable

compensation. Technology leadership, customer value

creation and employee engagement are the key drivers

of sustainable returns to our shareholders.

Remuneration principles

The remuneration philosophy we apply for all our

employees includes the principle that we want to be

competitive in our relevant labor markets and pay what

is fair in such markets, while maintaining internal

consistency in reflecting differences in size and

complexity of individual responsibilities. The Supervisory

Board applies the same principle for the Board of

Management of ASML and in doing so takes the pay

and employment conditions for our employees into

account when formulating the Remuneration Policy for

the Board of Management. The level of stakeholder

support, including the support of society, for the policy

is important to us and was also taken into account when

formulating its various elements. When preparing the

policy, the Supervisory Board considered the external

environment in which we operate, the relevant statutory

provisions and provisions of the Dutch Corporate

Governance Code, and competitive market practice –

as well as the guidance issued by organizations

representing institutional shareholders. The Supervisory

Board’s Remuneration Committee engaged extensively

with various stakeholders to obtain their perspectives.

These stakeholders included our shareholders,

shareholder interest organizations, proxy advisers and

the Works Council of ASML Netherlands BV. In line with

the Dutch Corporate Governance Code, the members

of the Board of Management were asked to share their

views on their remuneration. Furthermore, advice has

been obtained from an external remuneration expert.

The 2022 Remuneration Policy for the Board of

Management is built on the following principles:

•Competitiveness: The remuneration structure and

levels intend to be competitive in the relevant labor

market, while at the same time taking into account

societal trends and perceptions.

•Alignment: The policy is aligned with the STI and/or

LTI Policy for ASML senior management and other

ASML employees and takes into account internal

relativities.

•Long-term orientation: The policy and incentives focus

on sustainable long-term value creation.

•Compliance: ASML adopts the highest standards of

good corporate governance.

•Simplicity and transparency: The policy and its

execution are as simple as possible and easily

understandable to all stakeholders.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	148
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

Reference group and market positioning

Similar to the remuneration philosophy for all ASML

employees, we aim to offer the members of the Board

of Management a remuneration package that is

competitive compared with a relevant labor market.

To define this market, we created a reference group

consisting of companies of comparable size and

complexity, industry or business profile, data

transparency and geographical area. The reference

group may include Dutch and international companies

where members of the Board of Management might be

recruited to and from.

For as long as we are positioned around the median of

the group of companies with respect to size (measured

by enterprise value, revenue and number of employees)

and thus complexity, the median market level may serve

as a reference in determining the level of remuneration

for the Board of Management.

As ASML is a Dutch-headquartered company, the

Supervisory Board also takes into account the external

environment in which the company operates in the

Netherlands, and furthermore considers competitive

market practices as well as guidance issued by

organizations representing institutional shareholders in

the Netherlands, and has decided that the 2022

Remuneration Policy should not follow the (high)

international market level for LTIs and to cap the

maximum target LTI award at 200% of base salary.

This means that the reference to a median market level

described above will be used for the cash compensation

only (that is, the base salary and the STI, as the LTI will

be capped).

ASML had a dual presidency until the 2024 AGM and

considered the two Presidents of equal weight and

importance to the company. The Supervisory Board

therefore decided to apply, during the dual presidency,

the practice that the relevant benchmark reference level

for the two Presidents was the average of the CEO level

and that of the other members of the Board of

Management in the labor market data, instead of

benchmarking against CEO data only. As for this year,

given the switch to a single Presidency, the

remuneration is benchmarked against CEO data only.

For the other members of the Board of Management, the

Supervisory Board has applied the average of all non-

CEO members of the Board of Management in the

benchmark as relevant reference, instead of

differentiating between members of the Board of

Management. Following the retirement of Peter Wennink

and Martin van den Brink as Co-Presidents and the

appointment of Christophe Fouquet as our sole

President and CEO effective per the 2024 AGM,

references in the Remuneration Policy for the Board of

Management to the dual presidency and Presidents

should be considered a reference to our sole President

and CEO. While no substantial changes to our

Remuneration Policy for the Board of Management were

made for 2024, we included a cover note to the 2022

Remuneration Policy explaining that where reference is

made to the term 'Presidents' in the plural form, this

should read as 'President' in the singular form. Further

references to the dual presidency no longer serve a

purpose.

In principle, a benchmark of the Board of Management

remuneration is conducted every two years. In the year

without a market assessment, the Supervisory Board

considers the appropriateness of any change of base

salary, taking into account the market environment as

well as the salary adjustments for other employees.

To ensure an appropriate composition of the relevant

labor market, the Supervisory Board reviews the

composition of the reference group at the time a

benchmark is conducted. The composition of the

reference group may be adjusted as a result of takeover

transactions, mergers or other corporate activities.

Substantial changes applied to the composition of the

reference group will be proposed to shareholders.

Current reference group composition
	European companies<br><br>with focus on long-term<br><br>technology/industrial<br><br>engineering/R&D	Semiconductor<br><br>manufacturing<br><br>companies	Semiconductor<br><br>equipment companies
	ABB	Broadcom	Applied Materials
	Airbus	Intel	Lam Research
	Dassault<br><br>Systèmes	Qualcomm
	Infineon<br><br>Technologies
	Linde
	Medtronic
	Novartis
	NXP<br><br>Semiconductors
	Philips
	Roche
	SAP
	Schneider Electric
	Shell
	Siemens
	Siemens<br><br>Healthineers
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	149
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

Total direct compensation

The remuneration levels are determined using the Total Cash Compensation (TCC). TCC consists of base salary and

STI. TCC together with LTI constitutes total direct compensation.

Base salary

The 2022 Remuneration Policy for the Board of Management prescribes a benchmark that will only be conducted

for the TCC level – from which the base salary of Board of Management members is derived. The actual base salary

and annual increases will be reported in the Remuneration Report. The base salary for the Board of Management for

the reporting year 2024 is disclosed in the table Total remuneration Board of Management.

Variable compensation

The variable compensation consists of the STI and the LTI. The performance metrics are set by the Supervisory

Board and consist of financial and non-financial metrics in such a way that an optimal balance is achieved between

the various company objectives, both in the short and the long term. By doing so, we ensure the variable

compensation contributes to our strategy, long-term interests and sustainability. The Supervisory Board may adjust

the performance metrics and their relative weighting of the variable income based on the rules and principles as

outlined in the 2022 Remuneration Policy for the Board of Management of ASML Holding NV, if required by changed

strategic priorities in any given year. The Supervisory Board assesses the extent to which performance metrics are

met at the end of a performance period.

The 2022 Remuneration Policy for the Board of Management contains maximum levels for the STI and the LTI for

on-target performance. The Supervisory Board has decided to apply a gradual transition into the new policy levels.

For 2024, the on-target STI levels were unaltered for both outgoing Co-Presidents (105%), 120% as from the 2024

AGM for the new single President and CEO (2023: 105%) and 100% for the other members of the Board of

Management (2023: 95%). The on-target LTI levels were set at 200% for the new single President and CEO (2023:

170% for Co-Presidents) and 180% for the other Board members (2023: 170%).

The Supervisory Board has the discretionary power to adjust the incentive pay-out upward or downward if it feels

the outcome is unreasonable due to exceptional circumstances during the performance period.

Scenario analyses of the possible outcomes of the variable remuneration components and their effect on the

remuneration of the Board of Management are conducted annually.

The following table represents the variable pay as percentage of base salary for the Board of Management in the

case of maximum, on-target, threshold and below-threshold performance:

Performance-driven scenarios
Retains high proportion of performance related by:

2024 levels for<br><br>maximum<br><br>performance
	President
	Other members

% Variable	85%
% Variable	84%
2024 levels for<br><br>on target<br><br>performance
---	---
	President
	Other members

% Variable	76%
% Variable	74%
2024 levels for<br><br>threshold<br><br>performance
---	---
	President
	Other members

% Variable	59%
% Variable	56%
Below<br><br>threshold<br><br>performance
---	---
	President
	Other members

% Variable	0%
% Variable	0%	0<br><br>%
n	Base salary
---	---
n	STI
n	LTI
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	150
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

Summary of the 2022 Remuneration Policy for the Board of Management

The elements of the 2022 Remuneration Policy for the Board of Management and their link to our strategy are

summarized below.

Summary of 2022 Remuneration Policy

| Base<br><br>salary | + | STI<br><br>cash bonus | + | LTI<br><br>share-based<br><br>incentive | + | Pension and<br><br>other<br><br>benefits | = | Total<br><br>remuneration | | --- | --- | --- | --- | --- | --- | --- | --- | --- || Fixed remuneration (base salary) | | | --- | --- | | Link to strategy/rationale | 2022 policy | | Attract, motivate and retain qualified industry professionals for the<br><br>Board of Management in order to define and achieve strategic goals. | Benchmark | | | •Consisting of 20 most-relevant technology and R&D-oriented<br><br>companies, including our talent competitors, business peers and<br><br>(indirect) customers<br><br>•Composition of companies in the reference group takes into<br><br>account our geographic location – weighted toward European<br><br>companies (75% weighting), with some US companies (25%<br><br>weighting) | | STI (cash bonus) | | | Link to strategy/rationale | 2022 policy | | Ensure a balanced focus on both the (financial) performance of ASML<br><br>in the short term, and our sustained future in terms of technological<br><br>advancement and customer satisfaction, fueling long-term success. | •Maximum target STI: 120% of base salary for the President and<br><br>CEO and 100% for the other BoM members<br><br>•Implementation 2024 target STI: 120% of base salary for the<br><br>President and CEO and 100% for the other BoM members | | | The weight of the individual STI performance metrics is as follows: | | | •60% Financial<br><br>•20% Technology Leadership Index<br><br>•20% Customer Orientation || LTI (share-based incentive) | | | --- | --- | | Link to strategy/rationale | 2022 policy | | Contribute to our strategy, long-term interests and sustainability<br><br>using performance measures which balance the direct interest of our<br><br>investors, the long-term financial success of ASML, the long-term<br><br>continuation of technological advancement and the environmental<br><br>and social dimensions of sustainability. | •Maximum target LTI: capped at 200% of base salary<br><br>•Implementation 2024 target LTI: 200% of base salary for the<br><br>President and CEO and 180% of base salary for the other BoM<br><br>members | | | The weight of the individual LTI performance metrics is as follows: | | | •30% Relative TSR<br><br>•20–30% ESG measures; 2024 weight: 20%<br><br>•20–30% Technology Leadership Index; 2024 weight: 20%<br><br>•20–30% Strategic value drivers; 2024 weight: 30% | | Other elements of fixed remuneration (pension and other benefits) | | | Link to strategy/rationale | 2022 policy | | Contribute to the competitiveness of the overall remuneration<br><br>package and create alignment with market practice. | •Pension arrangement based on the ‘excedent’ (supplementary)<br><br>arrangement for employees in the Netherlands – a defined<br><br>contribution plan<br><br>•Expense reimbursements, such as company car costs, travel<br><br>expenses, representation allowances, housing costs (gross<br><br>amount before taxes), social security costs and health and<br><br>disability insurance costs | | Share ownership guidelines | | | Link to strategy/rationale | 2022 policy | | Requirement for a minimum share ownership by members of the<br><br>Board of Management. Ensure alignment between the interests of the<br><br>Board of Management members and our long-term value creation. | •President and CEO three times annual base salary, other BoM<br><br>members two times annual base salary<br><br>•Five-year period to comply<br><br>•Supervisory Board has discretion to allow a temporary deviation<br><br>in extraordinary circumstances<br><br>•Any shortfall will be remediated through the next vesting of shares | | STRATEGIC REPORT | CORPORATE GOVERNANCE | SUSTAINABILITY | FINANCIALS | ASML Annual Report 2024 | 151 | | --- | --- | --- | --- | --- | --- | | Corporate governance | Supervisory Board report | Remuneration report | | --- | --- | --- |

Board of Management remuneration (continued)

Remuneration of Board of Management in 2024

The remuneration of the Board of Management for the financial year 2024 is an implementation of and complies with

the 2022 Remuneration Policy for the Board of Management, as further explained below. As such, the remuneration

of the Board of Management in 2024 contributed to the objectives of the 2022 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 2024, 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 2024 and are aligned with company

performance and shareholder experience.

Annual plan<br><br>2024	Performance<br><br>metrics selected	EBIT %<br><br>Customer<br><br>orientation<br><br>Technology<br><br>leadership	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 2024. To further

implement the 2022 Board of Management Remuneration Policy and to more closely align with the market,

moderate base salary increases were applied for the Board of Management in 2024. For 2024 base salary levels,

reference is made to the section Total remuneration Board of Management.

Short-term incentive 2024

The financial and non-financial target levels for the STI were set at the beginning of the 2024 financial year in

accordance with the 2022 Remuneration Policy for the Board of Management and taking into account the annual

plan (forecast) for 2024.

For the STI, the Supervisory Board, taking into consideration our business challenges and circumstances in 2024,

decided to select a performance metric focused on profitability:

•EBIT Margin %, 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 2024, in accordance with the

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 Multi Beam within Applications; DUV Cost and Competitiveness; EUV Low NA

maturity; EUV High NA performance; and ASML’s Customer Trust Survey.

•Technology Leadership Index: A set of internal targets related to ASML’s product and technology roadmaps. The

index measures the technological progress made by ASML over the relevant performance period, supporting our

efforts to drive innovation and thereby helping our customers achieve their goals and realize new technology and

applications.

The Technology Leadership Index for 2024 consisted of a list of 20 key projects in Applications, DUV, EUV NXE and

EUV EXE. Among others, these projects related to improvements in inspection and metrology systems, optimization

of ASML’s product offering, component commonality and further defining ASML’s technology roadmap. Exact

details of the key projects included in the Technology Leadership Index are not disclosed, given that this would be

detrimental to the company and its stakeholders from a competitive and strategic point of view. To calculate the

Technology Leadership Index performance, each project is scored between 1 and 10; the overall Technology

Leadership Index score is the average of the individual scores. Both the STI and LTI make use of the Technology

Leadership Index as a qualitative performance measure. The objectives are the same for both, but the applicable

measures, targets and performance periods are different and aligned with specific short- and long-term strategic

priorities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	152
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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%	27.0%	29.5%	32.0%	31.9%	148.5%
Customer Orientation	20%					110.2%
Consisting of the following weighted sub-targets:
Applications: Adoption of Multi Beam	2.5%	*				125.0%
DUV Cost and Competitiveness	2.5%	*				110.0%
EUV Low NA Maturity	2.5%	*				97.6%
EUV High NA Performance	2.5%	*				77.0%
ASML Customer Trust Survey	10%	*				118.1%
Technology Leadership Index	20%	4	6	10	8.0	125.0%
Total	100%					136.1%

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 Summary of 2022 Remuneration Policy Board of Management.

The 2024 EBIT Margin % (Non-GAAP measure) of 31.9% is calculated as Income from operations of €9,023 million

divided by Total net sales of €28,263 million.

The actual outcome for Customer Orientation amounts to 110.2%, which is a decrease compared to last year’s

performance.

The actual outcome for Technology Leadership Index of 8.0 is in line with last year’s performance.

The total STI outcome for current and former Board of Management results in a cash pay-out of €5.3 million and

€1.0 million, respectively, representing a pay-out as a percentage of target of 136.1%.

Short-Term Incentive 2025

For 2025, the Supervisory Board has decided to apply the following STI performance measures under the proposed

2025 Remuneration Policy for the Board of Management:

Performance metric	Weight
EBIT Margin (%) (Non-GAAP measure)	60%
Customer Orientation	20%
Consisting of the following weighted sub-targets:
Applications: Adoption of Multi Beam	2.5%
DUV Cost and Competitiveness	2.5%
EUV Low NA maturity	2.5%
EUV High NA insertion	2.5%
ASML Customer Trust Survey	10%
Strategic Orientation	20%
Consisting of the following weighted sub-targets:
ERP	5%
High Productivity Platform	5%
New Product Quality	5%
Global Supply Chain Development	5%
Total	100%

Hereby, the Strategic Orientation measures align with key business priorities that are critical to achieving our

strategic objectives. If the proposed 2025 Remuneration Policy for the Board of Management is not adopted by the

2025 AGM, performance measure Strategic Orientation will be replaced with the Technology Leadership Index in

line with the current Remuneration Policy.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	153
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

Board of Management Remuneration in 2024 – Long-term incentive

Conditionally granted LTI Plan 2024–2026 in 2024

At the beginning of 2024, 29,187 performance shares were conditionally granted to the current and former members

of the Board of Management who were eligible to participate in the 2024–2026 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 period	Determine<br><br>LTI performance<br><br>measures for<br><br>three-year<br><br>performance period	Finalize long-term<br><br>financial plan
	Step 1	Step 2	Step 3	Step 4

At the beginning of 2024, 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 rTSR, Strategic value

drivers, Technology Leadership Index and ESG. The Supervisory Board also set the target levels related to all

performance metrics for the 2024–2026 LTI Plan, as listed below. This was done taking 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 2024–2026 LTI Plan, the following performance metrics apply, in accordance with the 2022 Remuneration

Policy for the Board of Management:

•

TSR

vs. Index companies: Measuring our relative change in share price, plus dividends paid over the relevant

performance period. The TSR is calculated as the difference between (i) the average (closing) share price during

the last quarter of the performance period and (ii) the average (closing) share price during the quarter preceding

the performance period; in the calculation, dividends are reinvested at the ex-dividend date. The TSR of ASML

(calculated with the ASML New York share) is compared with the PHLX Semiconductor Sector Index companies.

This Nasdaq index is designed to track the performance of a set of companies engaged in the design, distribution,

manufacture and sale of semiconductors. There are two versions of this index, a price return index and a total

return index, the latter of which has been chosen (Nasdaq: X.SOX), as this index reinvests cash dividends,

equivalent to the TSR definition described above.

•Strategic value drivers: ROAIC (Non-GAAP measure) is 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 will be

excluded from the evaluation after the LTI period.

•Technology Leadership Index: A qualitative measure which is also applied for the STI. As a metric for the LTI, the

Technology Leadership Index is more forward looking than its STI equivalent. It 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) employee

engagement, (2) 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) and (3)

commitment of the top 80% of suppliers to reduce their CO2e footprint by 2030.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	154
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

The target levels for the LTI performance criteria based on the policy are set out in the table below:

Performance metric		Performance targets
	Weight	Threshold	Target	Maximum
Relative TSR	30%	As per remuneration policy
ROAIC (2024–2026)1	30%	45%	70%	90%
ESG Measures	20%
Consisting of equally weighted sub-metrics:
Employee engagement<br><br>(Relative benchmark target vs. top 25% performing<br><br>companies (three-year rolling))	6.7%	-4	-2	0
Gender diversity:	6.7%
• % Inflow of women all JG and JG 9+		24%	26%	28%
• % Representation of women in JG 13+		12%	14%	16%
Commitment of the top 80% of suppliers (based on<br><br>CO2e emissions) to reduce their CO2e footprint by<br><br>2030	6.7%	65%	75%	85%
Technology Leadership Index	20%	4	6	10
Total	100%

1.The ROAIC 2024–2026 (Non-GAAP measure) is based on a three-year (2024–2026) 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.

Vesting under the LTI Plan 2022–2024

Following the end of the three-year performance period 2022–2024, the Supervisory Board assessed the

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 and the<br><br>vesting date, performance shares are<br><br>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

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 2022–2024 Plan

were TSR vs. Index companies, Normalized Cash Conversion Rate percentage (as strategic value driver),

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

Management.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	155
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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%	87.5%	121.6%	138.0%	92.7%	36.5%
Normalized three-year average cash<br><br>conversion rate %1	30%	80%	90%	95%	96.3%	200.0%
Technology Leadership Index	20%	4	6	10	8.2	154.2%
ESG Measures	20%					152.5%
Consisting of the following sub-measures:
EUV energy use per wafer pass (kWh per<br><br>wafer pass)	6.7%	7.0	6.5	6.0	5.9	200.0%
Employee engagement<br><br>(Relative benchmark target vs. top 25%<br><br>performing companies (3 year rolling))	6.7%	-4%	-3%	0%	-2.1%	129.8%
% Representation of women in JG 13+	6.7%	10%	12%	14%	12.6%	127.6%
Total	100%					132.3%	3

1.The normalized three-year average cash conversion rate % (CCR) 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. Free cash flow is a non-GAAP (generally accepted

accounting principles) measure and is defined as net cash provided by operating activities minus purchase of property, plant and equipment

and purchase of intangible assets. Purchase of property, plant and equipment and purchase of intangible assets are deducted from net cash

provided by operating activities in calculating free cash flow because these payments are necessary to support the maintenance and

investments in our assets to maintain the current asset base.

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

3.Total actual performance score of 132.3% is based on weighting of individual performance metrics multiplied by the pay-out percentage.

The total LTI outcome results in a share vesting of 132.3% of target.

Long-Term Incentive Plan 2025–2027

In 2025, it is intended to grant 30,481 performance shares to the current members of the Board of Management for

the 2025–2027 LTI performance plan. These conditional grants are based on the maximum achievable opportunity

for 2025 under the proposed 2025 Remuneration Policy for the Board of Management.

For the 2025–2027 performance period, the Supervisory Board has decided to apply the following LTI performance

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

		Performance targets
Performance metric	Weight	Threshold	Target	Maximum
Relative TSR	25%	As per remuneration policy
ROAIC (2025–2027)1	35%	35%	50%	65%
ESG measures2	20%
Consisting of the following sub-measures:
Gender diversity:	6.7%
• % Inflow of women JG 9+ (external and internal<br><br>inflow)		23.0%	25.0%	27.0%
• % Representation of women in JG 13+		14.0%	15.0%	16.0%
Engagement and inclusion:	6.7%
• Employee engagement<br><br>(Relative benchmark target vs. top 25% performing<br><br>companies (3 year rolling))		—4p.p.	—2 p.p.	0 p.p.
• Inclusion score<br><br>(Relative benchmark target vs. top 25% performing<br><br>companies (3 year rolling))		—4p.p.	—2 p.p.	0 p.p.
EUV energy use per wafer pass (kWh per wafer<br><br>pass)	6.7%	5.0	4.7	4.5
Technology Leadership Index	20%	4	6	10
Total	100%

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.ASML presents in this Annual Report its diversity and inclusion policies and targets for, and progress on achieving, gender diversity in

accordance with Dutch law and its Diversity and Inclusion policy adopted by the BoM pursuant to requirements of Dutch law. ASML has

become aware of US executive order 14173 (the “EO”) signed in January 2025, under which the US Office of Federal Contract Compliance

Programs must, among other things, immediately cease promoting diversity and allowing or encouraging US federal contractors and

subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin. As a company with a

dual listing on Euronext Amsterdam and Nasdaq, ASML is currently reviewing the implications of the EO. These targets and policy will not

apply to ASML’s US employees to the extent this would conflict with the EO or other applicable law, regulation or orders.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	156
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

If the proposed 2025 Remuneration Policy for the Board of Management is not adopted by the 2025 AGM, the

weighting of performance measures Relative TSR and ROAIC will be adjusted to 30% each, in line with the current

Remuneration Policy for the Board of Management.

Other remuneration

In 2024, members of the Board of Management participated in the pension arrangement for the Board of

Management, based on the ‘excedent’ (supplementary) arrangement for our employees in the Netherlands, a

defined contribution opportunity as defined in Dutch fiscal regulations. It consists of a gross pension element (for

the salary below approximately €138,000 minus the Witteveen threshold1) and a net pension element (for the salary

above approximately €138,000). Details of the incurred expenses relating to the application of the pension

arrangement in 2024 can be found in the table Total Remuneration Board of Management.

Expenses reimbursed by ASML in 2024 included company car costs, representation allowances, social security

costs, health and disability insurance costs and other benefits which reflect local market practice.

1.Dutch pension arrangements have a threshold in the build-up of pension entitlements. This threshold exists because all participants are

assumed to be entitled to the Dutch state pension (AOW) and therefore do not need an additional pension over the first part of their

pensionable income. The minimum level in the fiscal legislation for this threshold is related to the AOW allowance and is known as the

Witteveen threshold. This threshold is calculated as the annual AOW allowance (including holiday allowance) for a married person times 10/7.

Share ownership guidelines

The table below shows the share ownership guidelines, number of outstanding vested shares and share ownership

ratio of each Board of Management member as per December 31, 2024. All BoM members complied with the

minimum ownership guidelines per year end 2024.

Board of Management	Ownership guidelines	2024 base salary<br><br>(in € thousands)	Number of outstanding<br><br>vested shares	Ownership ratio1
C.D. Fouquet	3x base	1,082	7,174	4.50
F.J.M. Schneider-Maunoury	2x base	754	19,800	17.82
R.J.M. Dassen	2x base	754	4,777	4.30
W.R. Allan	2x base	754	3,207	2.89
J.P. Koonmen2	2x base	752	7,117	6.42

1.The Ownership ratio is calculated by multiplying the number of outstanding vested shares with the share price of €678.70 (based on the closing

share price of December 31, 2024) and dividing this by the 2024 annualized base salary.

2.James (Jim) P. Koonmen’s Long-Term Incentive (LTI) grants are vested in ASML NY shares (listed on the U.S. Nasdaq). His ownership ratio,

calculated based on his 2024 U.S. dollar base salary of $816,657 and the ASML NY share price of $693.08 (based on the closing share price of

December 31, 2024), is 6.04.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	157
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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 2024, 2023 and 2022 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	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
	2022	694	78	53		825	29.5%	619	1,354		1,973	70.5%	0.42	2,798
F.J.M. Schneider-Maunoury	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
	2022	694	141	36		871	30.6%	619	1,354		1,973	69.4%	0.44	2,844
R.J.M. Dassen	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
	2022	694	116	51		861	30.4%	619	1,354		1,973	69.6%	0.44	2,834
W.R. Allan2	2024	754	133	163	6	1,050	26.9%	1,026	1,821	3	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. Koonmen4,5	2024	516	8	206	6	730	31.1%	702	915		1,617	68.9%	0.45	2,347
Total Board of Management	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
	2022	2,082	335	140		2,557	30.2%	1,857	4,062		5,919	69.8%	0.43	8,476

1.Christophe D. Fouquet was appointed as President and CEO of ASML on April 24, 2024. His 2024 Long-Term Incentive (LTI) is based on the signed grant letter with grant date January 23, 2024. Although he was not formally appointed as President and CEO at the time of the grant, Christophe

D. Fouquet received a grant on January 23, 2024, in anticipation of his forthcoming appointment as President and CEO of ASML. His 2024 Short-Term Incentive (STI) was calculated based on his cumulative base salary of €242,000 with an STI target of 100% until the 2024 Annual General

Meeting (AGM), as a non-President, and his cumulative base salary of €737,000 with an STI target of 120% effective from the 2024 AGM, upon his appointment as President.

2. Wayne R. Allan was appointed as a member of the Board of Management on April 26, 2023. His 2024 Long-Term Incentive (LTI) is based on the signed grant letter with grant date January 27, 2023. Although he was not a member of the Board of Management at the time of the grant, Wayne R.

Allan received the grant in anticipation of his appointment to the Board of Management.

3. Wayne R. Allan's 2024 Long-Term Incentive (LTI) expense does not include the accounting release associated with the 2022 LTI plans that vested, as he was not a member of the Board of Management at the time this plan was granted in 2022.

4. James (Jim) P. Koonmen was appointed as a member of the Board of Management on April 24, 2024. Although he was not a member of the Board of Management at the time of the grant, James (Jim) P. Koonmen received the grant in anticipation of his appointment to the Board of

Management.

5. James (Jim) P. Koonmen's remuneration is paid in U.S. dollars. In 2024, his U.S. dollar-denominated equivalent of his cumulative base salary as a member of the Board of Management was $560,259 (€515,837). His 2024 Short-Term Incentive (STI) payout is calculated based on his U.S.

dollar-denominated equivalent cumulative base salary, resulting in a total of $762,512 (€702,054).

6. Wayne R. Allan (2024: €102,867) and James (Jim) P. Koonmen (2024: €177,055) received compensation to address the effects of double taxation in both the Netherlands and the United States.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	158
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Board of Management remuneration (continued)

Total remuneration former Board of Management

Peter T.F.M. Wennink and Martin A. 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	2024	345	82	119	2	546	10.9%	494	3	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
	2022	1,020	206	58		1,284	30.0%	961		2,035	2,996	70.0%	0.43	4,280
M.A. van den Brink1	2024	345	82	111	2	538	10.8%	494	3	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
	2022	1,020	206	57		1,283	30.0%	961		2,035	2,996	70.0%	0.43	4,279
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
	2022	2,040	412	115		2,567	30.0%	1,922		4,070	5,992	70.0%	0.43	8,559

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 pro rated 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 2024, Peter T.F.M. Wennink and Martin A. van den Brink received a jubilee award equivalent to their gross monthly salary.

3.In 2024, the on-target STI levels for Peter T.F.M. Wennink and Martin A. van den Brink were unaltered (105%).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	159
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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>date	Year-end<br><br>closing share<br><br>price in year of<br><br>vesting	End of lock-up<br><br>date
C.D. Fouquet1	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	Conditional	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	n/a	n/a	1/1/28
	4/29/22	Conditional2	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
	1/24/20	Unconditional	No	858	286.9	2,001	263.7	2,859	5,718	1/1/23	5,208	503.8	1/1/25
F.J.M.<br><br>Schneider-Maunoury	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	Conditional	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	n/a	n/a	1/1/28
	4/29/22	Conditional2	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
	1/24/20	Unconditional	No	858	286.9	2,001	263.7	2,859	5,718	1/1/23	5,208	503.8	1/1/25
R.J.M. Dassen	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	Conditional	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	n/a	n/a	1/1/28
	4/29/22	Conditional2	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
	1/24/20	Unconditional	No	858	286.9	2,001	263.7	2,859	5,718	1/1/23	5,208	503.8	1/1/25
W.R. Allan3	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	Conditional	No	731	901.9	1,706	603.4	2,437	4,874	1/1/26	n/a	n/a	1/1/28
J.P. Koonmen4,5	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.Christophe D. Fouquet was appointed as President and CEO of ASML on April 24, 2024. His 2024 Long-Term Incentive (LTI) grant is based on the signed grant letter with grant date January 23, 2024. Although he was not formally appointed as President and CEO at the time of the grant,

Christophe D. Fouquet received a grant on January 23, 2024, in anticipation of his forthcoming appointment as CEO and President of ASML.

2.The LTI plans that were granted on April 29, 2022 became unconditional after the vesting date on January 1, 2025.

3. Wayne R. Allan was appointed as a member of the Board of Management on April 26, 2023. His 2024 Long-Term Incentive (LTI) is based on the signed grant letter with grant date January 27, 2023. Although he was not a member of the Board of Management at the time of the grant, Wayne

R. Allan received the grant in anticipation of his appointment to the Board of Management.

4. James (Jim) P. Koonmen was appointed as a member of the Board of Management on April 24, 2024. Although he was not a member of the Board of Management at the time of the grant, James (Jim) P. Koonmen received the grant in anticipation of his appointment to the Board of

Management.

5. James (Jim) P. Koonmen's share-based remuneration is based on ASML NY shares (Nasdaq stock exchange). The fair value of his 2024 Long-Term Incentive (LTI) grant for the marked-based element is $1,034.6 and for the non-marked-based elements is $762.5.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	160
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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>date	Year-end<br><br>closing share<br><br>price in year of<br><br>vesting	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	Conditional	No	1,049	901.9	2,447	603.4	3,496	6,991	1/1/26	n/a	n/a	1/1/28
	4/29/22	Conditional2	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
	1/24/20	Unconditional	No	1,387	286.9	3,235	263.7	4,622	9,245	1/1/23	8,420	503.8	1/1/25
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	Conditional	No	1,049	901.9	2,447	603.4	3,496	6,991	1/1/26	n/a	n/a	1/1/28
	4/29/22	Conditional2	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
	1/24/20	Unconditional	No	1,387	286.9	3,235	263.7	4,622	9,245	1/1/23	8,420	503.8	1/1/25

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 pro rated 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. The LTI plans that were granted on April 29, 2022 became unconditional after the vesting date on January 1, 2025.

Reasons, criteria and principal conditions for granting shares

ASML has sufficient treasury shares as per December 31, 2024 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 Summary of 2022 Remuneration Policy Board of Management and to the section Board of Management Remuneration in 2024 – Long-term incentive as included in this

Remuneration Report. The principal conditions applicable to the 2024 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 the<br><br>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 internal<br><br>regulations.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	161
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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)	2020	2021	Change (in %)	2022	Change (in %)	2023	Change (in %)	2024	Change (in %)
Net sales	13,978,452	18,610,994	33.1	21,173,448	13.8	27,558,506	30.2	28,262,877	2.6
Net income based on US GAAP	3,553,670	5,883,177	65.6	5,624,209	(4.4)	7,838,994	39.4	7,571,563	(3.4)
Net income based on EU-IFRS	3,696,813	6,134,595	65.9	6,395,775	4.3	8,115,168	26.9	8,348,971	2.9
ASML share price (closing price on Euronext Amsterdam in €)	397.6	706.7	77.7	503.8	(28.7)	681.7	35.3	678.7	(0.4)
Average number of payroll employees in FTEs	24,727	28,223	14.1	33,071	17.2	38,805	17.3	41,697	7.5
Employee engagement score	n/a	78.0%	n/a	77.9%	(0.1)	80.3%	3.1	78.4%	(2.4)
Remuneration C.D. Fouquet (CEO)1	2,975	3,137	5.4	2,798	(10.8)	3,519	25.8	5,432	54.4
Remuneration P.T.F.M. Wennink (former CEO)2	4,564	4,820	5.6	4,280	(11.2)	5,941	38.8	4,993	(16.0)
Remuneration M.A. van den Brink (former CEO)	4,564	4,819	5.6	4,279	(11.2)	5,939	38.8	4,985	(16.1)
Remuneration F.J.M. Schneider-Maunoury	2,927	3,158	7.9	2,844	(9.9)	3,574	25.7	4,209	17.8
Remuneration R.J.M. Dassen	3,804	3,800	(0.1)	2,834	(25.4)	3,558	25.5	4,190	17.8
Remuneration W.R. Allan3	n/a	n/a	n/a	n/a	n/a	2,071	n/a	3,897	88.2
Remuneration J.P. Koonmen4	n/a	n/a	n/a	n/a	n/a	n/a	n/a	2,347	n/a
Average remuneration per FTE based on US GAAP	120	122	1.7	125	2.5	138	10.4	145	5.1
Average remuneration per FTE based on EU-IFRS	120	122	1.7	118	(3.3)	143	21.2	145	1.4
Internal pay ratio (CEO versus employee remuneration based on US GAAP)5	38	40	5.3	34	(15.0)	43	26.5	40	(7.0)
Internal pay ratio (CEO versus employee remuneration based on EU-IFRS)5	38	40	5.3	36	(10.0)	42	16.7	40	(4.8)

1.Christophe D. Fouquet was appointed as President and CEO of ASML on April 24, 2024. As he was already a member of the Board of Management (BoM), his total remuneration for 2024 is disclosed by taking into account his tenure as both a regular BoM member and as President and CEO

of ASML.

2. 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.

3. Wayne R. Allan was appointed as a member of the Board of Management on April 26, 2023.

4. James (Jim) P. Koonmen was appointed as a member of the Board of Management on April 24, 2024.

5. The calculation approach of the internal pay ratio is disclosed in the section Relationship between CEO and average remuneration (pay ratio).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	162
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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, net sales

increased by 202%, net income increased by 218%

based on US GAAP (226% based on EU-IFRS) and

ASML's share price increased by more than 170%. 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 2022), resulting in higher base salaries as well as

higher target levels of STI and LTI leading to a similar

increase in the remuneration over this same period.

Relationship between CEO and average remuneration

(pay ratio)

The internal pay ratio consists of the CEO’s total

annualized1 remuneration (including all remuneration

components) during 2024 of €5,771 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 = €6,037.4 million divided

by 41,697 = €145 thousand. This ratio has neither been

prepared to comply with the Pay Ratio Disclosure

requirements under SEC regulations nor with the ESRS

requirements2. 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 more into line with the

requirements of the Corporate Governance Code.

1.Remuneration reflects the 2024 remuneration of the current CEO.

2.For the annual total remuneration ratio in accordance with ESRS, we

refer to the Sustainability statements.

The internal pay ratio (CEO versus employee

remuneration) based on US GAAP decreased to 40:1 in

2024 (2023: 43:1) and based on EU-IFRS decreased to

40:1 in 2024 (2023: 42:1). The decrease is mainly a result

of Mr. Wennink's retirement since his remaining

expected LTI expenses were accelerated over his

remaining service period in 2023.

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	163
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board remuneration

In this section of the Remuneration Report, we provide

an overview of the 2023 Remuneration Policy for the

Supervisory Board and remuneration amounts as both

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

as in force from April 1, 2023 onwards. We also provide

information about the implementation of the 2023

Remuneration Policy in 2024 by giving details of the

members’ actual remuneration in 2024. The 2023

Remuneration Policy and remuneration amounts 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	164
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board remuneration (continued)

Summary of Remuneration of the Supervisory Board

This table provides an overview of the 2023 and 2024 implementation of the Remuneration Policy for the Supervisory Board and remuneration amounts of the members of the Supervisory Board as both adopted at the 2023 AGM.

Fixed remuneration
	Description in 2023 Remuneration Policy		2023	2024
	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	€140,000
		Vice Chair of Supervisory Board	€100,000	€100,000
		Member of Supervisory Board	€80,000	€80,000
		Chair Audit Committee	€27,000	€27,000
		Member Audit Committee	€18,000	€18,000
		Chair of other committees	€22,000	€22,000
		Member of other committees	€16,000	€16,000
Extra allowance for intercontinental meetings
	Description in 2023 Remuneration Policy		2023	2024
	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		2023	2024
	Expenses incurred in relation to meeting attendance are reimbursed.<br><br>In addition, a fixed net cost allowance is paid, covering certain pre-<br><br>defined out-of-pocket expenses.	Fixed net cost allowance
		Chair of Supervisory Board	€1,980	€1,980
		Member of Supervisory Board	€1,380	€1,380
	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 in<br><br>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.				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 holding<br><br>of ASML shares is for the purpose of long-term investment. Any<br><br>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 Association.<br><br>No clawback, severance or change in control arrangements is in<br><br>place.	Not applicable
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	165
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

Supervisory Board remuneration (continued)

Remuneration of the Supervisory Board in 2024

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>2024	Committee fees<br><br>2024	Allowances 20241	Ratio fixed/variable<br><br>2024	Total remuneration<br><br>2024	Total remuneration<br><br>2023	Total remuneration<br><br>2022	Total remuneration<br><br>2021	Total remuneration<br><br>2020
T.L. Kelly	80	38	11	1.0	129	137	126	107	88
A.P. Aris	100	48	6	1.0	154	152	144	127	95
B.M. Conix	80	40	6	1.0	126	109	99	63	n/a
D.M. Durcan	80	38	26	1.0	144	137	126	112	57
D.W.A. East	80	34	6	1.0	120	119	99	93	59
N.S. Andersen	140	40	7	1.0	187	123	n/a	n/a	n/a
J.P. de Kreij	80	43	6	1.0	129	85	n/a	n/a	n/a
A.F.M. Everke	80	32	6	1.0	118	104	66	n/a	n/a
A.L. Steegen	80	32	6	1.0	118	109	66	n/a	n/a
Total	800	345	80	1.0	1,225	1,075	726	502	299

1.Allowances consist of fixed-expense allowances and allowances for intercontinental meetings.

No pay has been granted in 2024 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 2024, 2023 and 2022 (amounts are in € thousands):

Former Supervisory Board member	Total remuneration<br><br>2024	Total remuneration<br><br>2023	Total remuneration<br><br>2022
G.J. Kleisterlee	n/a	61	190
R.D. Schwalb	n/a	37	116
J.M.C. Stork	n/a	n/a	40
Total	n/a	98	346
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	166
---	---	---	---	---	---
Corporate governance	Supervisory Board report	Remuneration report
---	---	---

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 2024 amounts to

€31.3 million (2023: €25.8 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 2024.

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

2024.

Deviations

In 2024, 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 2024 AGM, the Remuneration Report for the

financial year 2023 was submitted to the 2024 AGM for

an advisory vote. 94.10% of the votes were cast in favor.

In the Message from the Remuneration Committee Chair

at the beginning of this Remuneration Report, we

discuss how we have taken into account the feedback

received on Board of Management and Supervisory

Board remuneration.

This Remuneration Report will be submitted to the 2025

AGM for an advisory vote in line with Dutch law.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	167
General disclosures	Environmental	Social	Governance
---	---	---	---

Sustainability

168	Limited assurance report of the independent auditor on<br><br>the Sustainability statements
	General disclosures
171	Basis for preparation
173	ESG sustainability governance
176	ESG sustainability at a glance
177	Our value chain overview
178	Impact, risk and opportunity management
185	Contributing to the UN's SDGs
186	Metrics
187	Reference table
194	Environmental
195	Energy efficiency and climate action
235	Circular economy
250	EU Taxonomy
259	Social
260	Attractive workplace for all
288	Responsible value chain
297	Innovation ecosystem
306	Valued partner in our communities
321	Governance
322	ESG integrated governance
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	168
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Limited assurance report of the independent auditor on the Sustainability statements

To: the Supervisory Board of ASML Holding NV

Our conclusion

We have performed a limited assurance engagement on the consolidated sustainability statements for 2024 of

ASML Holding NV based in Veldhoven (hereinafter: the company) in the section ‘Sustainability statements’ of the

accompanying annual report, including the information incorporated in the sustainability statements by reference

(hereinafter: the sustainability statements).

Based on the procedures performed and the assurance evidence obtained, nothing has come to our attention that

causes us to believe that the sustainability statements 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 double materiality assessment process carried out by the

company to identify the information reported pursuant to the ESRS; and

•compliant with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy

Regulation).

Basis for our conclusion

We performed our limited assurance engagement on the sustainability statements in accordance with Dutch law,

including Dutch Standard 3810N ‘Assurance-opdrachten inzake duurzaamheidsverslaggeving’ (Assurance

engagements relating to sustainability reporting) which is a specified 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 assurance engagement on the sustainability statements’ section of our

report.

We are independent of ASML Holding NV in accordance with the ‘Verordening inzake de onafhankelijkheid van

accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect

to independence). Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels

accountants’ (VGBA, Dutch Code of Ethics for Professional Accountants).

We believe the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our

conclusion.

Emphasis of matter

We draw attention to the section ‘Basis for preparation’ of the sustainability statements which sets out that the

sustainability statements have been prepared in a context of new sustainability reporting standards. These

standards require making entity-specific interpretations and addressing inherent measurement and/or evaluation

uncertainties.

This section furthermore describes possible sources of estimation and outcome uncertainty. It identifies

circumstances around the quantitative metrics that are subject to a high level of measurement uncertainty and

discloses information about the sources of measurement uncertainty and the assumptions, approximations and

judgements the company has made in measuring these in compliance with the ESRS.

The comparability of sustainability information between entities and over time may be affected by the lack of

historical information in accordance with the ESRS. This allows for the application of different, but acceptable,

measurement techniques, especially in the initial years.

We also draw attention to the ‘Impact, risk and opportunity management’ section in the sustainability statements.

This disclosure explains the double materiality assessment process, including robust engagement with affected

stakeholders. Due diligence is an on-going practice that responds to and may trigger changes in the company’s

strategy, business model, activities, business relationships, operating, sourcing and selling contexts. The

sustainability statements may not include every impact, risk and opportunity or additional entity-specific disclosure

that each individual stakeholder (group) may consider important in its own particular assessment.

Our conclusion is not modified in respect to this emphasis of matter.

Limitations to the scope of our assurance engagement

Limited assurance has been provided on the sustainability information reported in the prior year’s integrated annual

report, however, not in the context of the new sustainability reporting standards (ESRS). Consequently, the

corresponding sustainability information and related disclosures for the year 2023 have not been subject to

assurance procedures in the context of the ESRS.

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 on the basis of 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. We do not provide assurance on the achievability of this forward-

looking information.

The references to external sources or websites in the sustainability information are not part of the sustainability

information as included in the scope of our assurance engagement. We therefore do not provide assurance on this

information.

Our conclusion is not modified in respect to these matters.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	169
General disclosures	Environmental	Social	Governance
---	---	---	---

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

Responsibilities of the Board of Management and the Supervisory Board for the sustainability statements

The Board of Management is responsible for the preparation of the sustainability statements in accordance with the

ESRS, including the double materiality assessment process carried out by the company as the basis for the

sustainability statements and disclosure of material impacts, risks and opportunities in accordance with the ESRS.

As part of the preparation of the sustainability statements, management is responsible for compliance with the

reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation). 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 it determines is necessary to

enable the preparation of the sustainability statements that is free from material misstatement, whether due to fraud

or error.

The Supervisory Board is responsible for overseeing the sustainability reporting process including the double

materiality assessment process carried out by the company.

Our responsibilities for the assurance engagement on the sustainability statements

Our responsibility is to plan and perform the assurance engagement in a manner that allows us to obtain sufficient

and appropriate assurance evidence for our conclusion.

Our assurance engagement is aimed to obtain a limited level of assurance to determine the plausibility of

sustainability information. 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 less than the assurance that is obtained when a reasonable assurance engagement is performed.

A further description of our responsibilities for the assurance engagement on the sustainability statements is

included in the appendix of this assurance report. This description forms part of our assurance report.

Amstelveen, March 5, 2025

KPMG Accountants N.V.

P.J. Groenland – van der Linden RA

Appendix:

Description of our responsibilities for the assurance engagement on the Sustainability statements.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	170
General disclosures	Environmental	Social	Governance
---	---	---	---

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

Appendix

We apply the quality management requirements pursuant to the Nadere voorschriften kwaliteitsmanagement (NV

KM, regulations for quality management) and accordingly maintain a comprehensive system of quality management

including documented policies and procedures regarding compliance with ethical requirements, professional

standards and applicable legal and regulatory requirements.

Our limited assurance engagement included among others:

•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 in order to assess the double materiality assessment process 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 the 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 economic activities and preparing the disclosures provided

for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), without obtaining assurance evidence about

the implementation, or testing the operating effectiveness, of controls;

•Assessing the double materiality assessment process carried out by the company and identifying and assessing

areas of the sustainability statements, including the disclosures provided for in Article 8 of Regulation (EU)

2020/852 (Taxonomy Regulation) where misleading or unbalanced information or material misstatements, whether

due to fraud or error, are likely to arise (‘selected disclosures’). We designed and performed further assurance

procedures aimed at assessing that the sustainability statements disclosures are free from material misstatements

responsive to this risk analysis;

•Considering whether the description of the double materiality assessment process in the sustainability statements

made by the Board of Management is consistent with the process carried out by the company;

•Performing analytical review procedures on quantitative information in the sustainability statements, including

consideration of data and trends in the information submitted for consolidation at corporate level;

•Assessing whether the company’s methods for developing estimates are appropriate and have been consistently

applied for selected disclosures. We considered data and trends, however, our procedures did not include testing

the data on which the estimates are based or separately developing our own estimates against which to evaluate

management’s estimates;

•Analysing, on a limited sample basis, relevant internal and external documentation available to the company

(including publicly available information or information from actors throughout its value chain) for selected

disclosures;

•Reading the other information in the annual report to identify material inconsistencies, if any, with the sustainability

statements and reconciling the relevant financial information with the financial statements;

•Considering whether:

◦the disclosures provided to address the reporting requirements provided for in Article 8 of Regulation (EU)

2020/852 (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;

◦the disclosures provided to address the reporting requirements provided for in Article 8 of Regulation (EU)

2020/852 (Taxonomy Regulation) appear reasonable, in particular whether the eligible economic activities meet

the cumulative conditions to qualify as aligned and whether the technical screening criteria are met; and

◦the key performance indicators disclosures have been defined and calculated in accordance with the

Taxonomy reference framework as defined in Appendix 1 Glossary of Terms of the CEAOB Guidelines on

limited assurance on sustainability reporting adopted on 30 September 2024 , and in compliance with the

reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), including

the format in which the activities are presented.

•Considering the overall presentation, structure and the fundamental qualitative characteristics of information

(relevance and faithful representation: complete, neutral and accurate) reported in the sustainability statements,

including the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation);

and

•Considering, based on our limited assurance procedures and evaluation of the assurance evidence obtained,

whether the sustainability statements as a whole, are free from material misstatements and prepared in

accordance with the ESRS.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	171
General disclosures	Environmental	Social	Governance
---	---	---	---

Basis for preparation

General basis for preparation of the

Sustainability statements

The Sustainability statements in the Management

Report have been drawn up in accordance with

the sustainability reporting standards referred to

in Article 29 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.

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. In joint ventures and

strategic partnerships where we have a non-

controlling interest, we make reasonable efforts to

ensure consistency with a policy.

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 two 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 it is

possible to improve accuracy over time, we will

detail our actions for doing so.

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 (non-exhaustive):

•Dependency on the outcome of future events

•Measurement techniques

•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 resource inflows and outflows. The use of

accumulated estimation techniques may lead to

either under- or overstatement of total mass

flows. Additionally the GHG emissions from

Scope 3 Category 11 Use of sold Products are

based on significant assumptions regarding the

operational lifespan of our machines and their

energy consumption over the years.

Changes in preparation or presentation of sustainability

information

This is our first year reporting in accordance with

ESRS. When, in subsequent years, 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

This is our first year reporting in accordance with

ESRS. When, in subsequent years, 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 not

impracticable, the circumstances.

Reporting on opportunities

In addition, we report on material opportunities

identified in our materiality assessment. We will

indicate whether we currently pursue the

opportunity as a part of our strategy and whether

it is specific to our company or the

semiconductor industry in general. Generally

acknowledged methodologies for quantification of

opportunities are still to be developed, and the

number of assumptions required would be

significant. As a result, we have not included

quantitative measures of anticipated financial

effects in our reporting.

Updating disclosures about events after the

end of the reporting period

If any material information that provides 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

sustainability 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

In this report, we have incorporated several

disclosure requirements and data points from

ESRS, enhancing the depth and breadth of our

reporting. 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.

Read more in Sustainability statements – General

disclosures – Reference table

Identification of material sustainability matters

We have identified the material sustainability

matters for our company based on a double

materiality assessment (DMA).

Read more in Sustainability statements – General

disclosures – Impact, risk and opportunity

management

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	172
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 theme sections (‘How we're

managing’).

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-exhaustive):

•Policy and regulatory change

•Decarbonization trajectory in the economy

•Macroeconomic trends

•Financial factors

•Technological developments

•Data quality and methodology improvements

Where targets are specifically subject to a

specific dependency this is disclosed.

Actions and resources in relation to material

sustainability matters

In the reporting year we have undertaken a series

of key actions that are expected to yield

significant outcomes in the near future.

Scope of key actions

Our actions are characterized by a broad scope

encompassing various facets of our business

operations. The implementation of key actions

spans both our upstream and downstream value

chain, but also our own operations. Unless

otherwise stated, the scope for the key actions

disclosed is worldwide.

Remedial actions

In our efforts, we remain cognizant of the

potential for actual material adverse impacts.

To this end, we have instituted a grievance

mechanism to address the adverse impacts that

have been notified. We undertake remedial

actions, with the aim that we not only prevent

harm but actively contribute to remediation.

Resource allocation

Our commitment to sustainability is evidenced by

our resource allocation strategies. We have

earmarked substantial (financial) resources to fuel

our sustainability initiatives. In cases where it is

not possible to quantify the resources for an

action, we 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 that are 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/demand

changes and significant R&D costs.

Further details on the individual actions and the

progress made on each can be found in the

individual theme sections.

The costs attributed to full-time equivalents

(FTEs) are based on an average per employee.

This average is determined based on the

Consolidated financial statements (total Personnel

expenses divided by the Average number of

payroll employees in FTEs).

Metrics

The metrics in this report are not validated by an

external body. The Sustainability statements,

which include the metrics, are subject to limited

assurance by the assurance provider.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	173
General disclosures	Environmental	Social	Governance
---	---	---	---

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<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
a<br><br>l	Cross-functional table meetings
	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), Board

of Management (BoM), ESG Sustainability

team (headed 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. The BoM and SB do not include

workforce representatives.

Read more about the composition, background,

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

ESG sustainability-related impacts, risks

and opportunities that arise from our DMA.

It receives quarterly updates on ESG

sustainability and provides guidance

on relevant issues.

Read more about our DMA process in Sustainability

statements – General disclosures – Impact, risk and

opportunity management

The SB monitors and advises the BoM on

ESG sustainability aspects that are 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,

environmental, social and governance

matters (ESG sustainability matters).

Read more in Corporate governance – Supervisory

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, 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 (EPRM),

comprising various participants including

the CEO and CFO, is the delegated body

responsible for oversight of impacts, risks

and opportunities. Meeting monthly, it

reviews the progress of our ESG

sustainability strategy, including related

actions.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	174
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG sustainability governance (continued)

The ESG Sustainability team supports the

BoM in relation to ESG sustainability. Our

ESG Sustainability team makes

recommendations to our BoM regarding

focus areas, targets, external commitments

and disclosures in relation to ESG

sustainability. Especially where there are

changes in material topics, external inputs

or new insights, those are included in the

recommendations.

This ensures insights and directives 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

are an integral part of our enterprise risk

management (ERM) process and ensures we

take a holistic approach to risk

management.

Read more in Strategic report – Performance and

risk – Risk – How we manage risk

Measuring the effectiveness of our ESG

sustainability strategy

To track and assess the effectiveness of

our ESG sustainability strategy, we have

established a set of key performance

indicators (KPIs), parameters and associated

targets or we are in the process of

establishing these with the aim of covering

all material topics. KPI and target

development for the ESG sustainability

strategy is a collaborative process involving

our ESG Sustainability team, the business,

and relevant internal and external

stakeholders, and adopted by the BoM. The

BoM 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

topics forms part of the long-term incentive

plans of the BoM and senior management.

There is an annual update of ESG-related

long-term incentives (LTIs), which currently

constitutes 20% of the total LTI score. Full

detail on how ESG has been factored into

the remuneration of BoM and SB is available

in the Remuneration Report.

Read more in Corporate governance - Remuneration

report

Industry cooperation

We increasingly cooperate across the

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 increase global access to

renewable electricity.

Read more in Sustainability statements –

Environmental – Energy efficiency and climate

action

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	175
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG sustainability governance (continued)

Environmental and human rights due

diligence process

We have incorporated an environmental

and human rights due diligence process

– serving as a cornerstone in assessing the

material impacts, risks and opportunities

associated with our business operations.

This process is not confined to our

immediate operations but extends to both

upstream and downstream elements of our

value chain, encompassing our products,

services and business relationships.

It includes 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.

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.

Our due diligence process, which has been

set up pursuant to international instruments

such as the United Nations Guiding

Principles on Business and Human Rights

and the Organisation for Economic Co-

operation and Development (OECD)

Guidelines for Multinational Enterprises, is a

comprehensive approach to identifying,

preventing, mitigating and accounting for the

actual and potential negative impacts on the

environment and society linked to our

business activities. This process is designed

to allow us to prioritize actions based on the

severity and likelihood of the impacts,

thereby informing the assessment of

material impacts.

Read more in Strategic report – Corporate conduct –

Respecting human rights

The core elements of our environmental and

human rights due diligence process are

described in this Annual Report:

•Embedding due diligence in governance,

strategy and business model

•Engaging with affected stakeholders

•Identifying and assessing adverse impacts

•Taking action to address adverse impacts

•Tracking effectiveness of efforts and

communicating

Read more in Sustainability statements – Social –

Responsible value chain

We have a number of policies that further

define commitments, principles and

governance for specific aspects of

environmental and human rights due

diligence. They are communicated to

employees and other workers in employee

onboarding, via training sessions and the

intranet. Policies are made available

externally via our website (free of cost).

Policies, or key aspects of policies, are

communicated to third parties via contracts,

the ASML Supplier Handbook and the

Responsible Business Alliance (RBA)

program.

Risk management and internal controls

over sustainability reporting

In this section of the report, we outline the

processes and methodologies used to

govern our approach to sustainability

reporting, ensuring accuracy and reliability

in the information we have included.

Our sustainability reporting related risks

are part of ASML’s 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 on

existing controls and include new controls

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 to ensure completeness of the risk and

control framework for sustainability

reporting. This risk and control framework is

prepared in 2024 and is continuously

evolving. It will be further expanded and

updated in the coming years due to test

results, internal and external developments

on sustainability as well for local

jurisdictions. The level of maturity of the

internal controls over sustainability reporting

will grow in the coming years.

The sustainability reporting risk and control

framework is reviewed annually, or for major

changes that impact sustainability reporting

during the year.

Read more in Strategic report – Performance and

risk – Risk – How we manage risk

Risk assessment for sustainability

reporting

For our sustainability reporting we perform a

risk assessment in accordance with ASML’s

ERM risk prioritization methodology. This

risk assessment 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

of availability of the data.

Managing sustainability reporting risks

For the identified sustainability reporting

risks as described above, we define

mitigation strategies to avoid, accept,

transfer and/or reduce the related risk. The

mitigating measures and controls are

included in our sustainability reporting risk

and control framework.

Supporting sustainability reporting

governance model

In 2024 we implemented our sustainability

reporting in accordance with new EU

regulations, the Corporate Sustainability

Reporting Directive (CSRD) and ESRS. The

CSRD defines the overarching framework for

sustainability reporting, while ESRS provide

detailed reporting standards to support

CSRD compliance. During the

implementation we monitored the risks,

project progress and findings related to the

execution via a dedicated project with

involvement of our BoM, Corporate Chief

Accountant and Head of ESG Sustainability.

The SB was informed regularly about the

project execution including the risks and

progress.

For 2025 we aim to continue with the

sustainability reporting governance model,

incorporated in the company risk

management governance structure as

explained in our Risk management section.

Findings of the risk assessment and controls

related to sustainability reporting will be

assessed and discussed via this governance

structure, which includes:

•Board of Management

•Compliance, Ethics, Security & Risk

Committee

•Disclosure Committee

•Internal Control Committee

•Risk and Control Owners

Read more in Strategic report – Performance and

risk – Risk – How we manage risk

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	176
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG sustainability at a glance

We are focused on creating long-term value for all our

Our vision is to enable groundbreaking technology to solve some of humanity’s toughest challenges
1	Deepen customer trust		2		Extend our technology and holistic<br><br>product leadership	3		Strengthen ecosystem<br><br>relationships
---	---	---	---	---	---	---	---	---
	Create an exceptional workplace
4		5		Drive operational excellence	6		Deliver on our ESG sustainability<br><br>mission and responsibilities		Environmental	Social	Governance
---	---	---
Read more on page 194 >	Read more on page 259 >	Read more on page 321 >
We want to help expand<br><br>computing power while minimizing<br><br>waste, energy use and emissions.<br><br>Our focus on energy efficiency and climate<br><br>action, and on the circular economy,<br><br>is fundamental to achieving this goal.	We want to deliver responsible<br><br>growth that benefits all our stakeholders –<br><br>providing an attractive workplace for all,<br><br>building a responsible value chain, fueling<br><br>innovation in our ecosystem and being a valued<br><br>partner to communities.	We aim to act<br><br>on our responsibilities and anchor<br><br>them across our entire business through<br><br>integrated governance, engaged<br><br>stakeholders and transparent reporting.		Energy efficiency<br><br>and climate action	Circular economy	Attractive workplace for all	Responsible value chain	ESG integrated governance	Engaged stakeholders
---	---	---	---	---	---
	page 235 >	page 260 >	page 288 >	page 322>	page 46 >
page 195 >
		Innovation ecosystem	Valued partner<br><br>in our communities	Transparent reporting
		page 297 >		page 321 >
			page 306 >				Our ESG sustainability strategy is tracked by targets which are detailed across the theme pages
---

Our

key themes

Our

commitments

Our business

strategy

stakeholders and shaping a sustainable future. Our ESG

sustainability strategy is based on the topics that are

significant to our organization. We use input from our

stakeholders to identify where we have the most

significant impact on the environment and people,

including their human rights, along with the associated

risks and opportunities.

By annually updating our ESG sustainability strategy and

actively managing the most material sustainability

topics, we stay focused on the most important ESG

impacts and risks and improve our resiliency to those

risks while being able to effectively respond to the

opportunities we see.

Our contribution to a digital, sustainable future

Increasing digitalization can pave the way to a society

that is more environmentally and socially sustainable for

everyone. The large-scale digitalization required to

achieve a sustainable future relies on the semiconductor

industry’s ability to produce faster, more powerful

microchips that are energy efficient and affordable.

Together with our partners, we provide the patterning

solutions that can help make this possible. But the

benefits our industry brings come at a cost, including

energy and resource use. We are committed to

innovating and investing to enable our company and the

industry as a whole to reduce its negative impacts.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	177
General disclosures	Environmental	Social	Governance
---	---	---	---

Our value chain overview

The overview gives an impression of activities, resources and relationships related to our business model and the external environment in which we operate.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	178
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management

Our material ESG sustainability topics

Why it matters

ESG sustainability is important to us and

our business, and ESG topics have become

increasingly important to our customers,

employees, suppliers, shareholders and

society. We aim to respond to the

continuously evolving needs of our

stakeholders with our ESG sustainability

strategy.

How we manage our impact

When we act sustainably as a business, it

benefits everyone. We want to grow our

company and increase our positive impact

while minimizing our negative impacts on the

environment and people. We do this by

focusing on the ESG sustainability topics

where we can have the biggest impact. For

these so-called material topics, we define

policies, targets and actions, and disclose

progress against them in our ESG

sustainability reporting.

Our first DMA was conducted in 2023 as

input for our ESG sustainability strategy.

Double materiality reflects: (1) our most

significant impacts to the environment and

people; and (2) the most significant

sustainability-related risks and opportunities

affecting our value drivers, competitive

position and long-term shareholder value

creation. Prior to 2023, we conducted an

impact materiality assessment.

Our ESG sustainability strategy comprises

short-term targets toward 2025, medium-

term targets toward 2030 and long-term

targets toward 2040, to manage our material

impacts, risks and opportunities. The

outcomes of our DMA are also integrated in

our risk processes, supporting the mitigation

of material risks. We executed the DMA by

following the seven-step approach,

explained on the next page.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	179
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

How we identified our material topics
Step 1:<br><br>Understanding context	Step 2:<br><br>Determining potentially<br><br>relevant sustainability<br><br>matters	Step 3:<br><br>Identifying impacts, risks<br><br>and opportunities	Step 4:<br><br>Assessing the materiality<br><br>of impacts	Step 5:<br><br>Assessing the materiality<br><br>of risks and opportunities	Step 6:<br><br>Deciding on thresholds<br><br>for materiality	Step 7:<br><br>Assessing strategic<br><br>implications
Stakeholders that are or could be<br><br>affected by ASML, and stakeholders<br><br>that affect or could affect ASML, are<br><br>central to the materiality assessment<br><br>process. To understand the topics of<br><br>interest of our five stakeholder groups<br><br>– customers, employees, suppliers<br><br>(including contractors), shareholders<br><br>and society – and how their interests<br><br>may be impacted, we continuously<br><br>engage with them. This includes<br><br>regular meetings, surveys, supplier<br><br>days and investor dialogue. In addition,<br><br>we take into account business<br><br>relationships, relevant legal and<br><br>regulatory developments, industry<br><br>studies, knowledge from internal and<br><br>external subject matter experts and<br><br>ESG benchmarks. These support the<br><br>identification of impacts, risks and<br><br>opportunities that are considered in the<br><br>materiality assessment – as well as the<br><br>collection of insights for improvement<br><br>actions and feedback on strategy,<br><br>performance and progress.	We monitor the sustainability<br><br>context of our activities and<br><br>business relationships by<br><br>reviewing relevant sources of<br><br>information about our industry<br><br>and peers, international<br><br>standards and (upcoming)<br><br>legislation, media and selected<br><br>ESG rating agencies. Based on<br><br>these analyses, insights from<br><br>stakeholder engagement, and<br><br>internal impact and risk<br><br>assessments, an initial list of<br><br>potential material sustainability<br><br>matters is drafted.	We define impacts, risks and<br><br>opportunities related to each of the<br><br>potential material sustainability matters<br><br>identified. Impacts include positive and<br><br>negative, actual and potential, and short-,<br><br>medium- and long-term impacts from our<br><br>activities on the environment, society and<br><br>the economy (based on our strategy and<br><br>business model), our business relations,<br><br>geographies and across our value chain.<br><br>To identify risks and opportunities related<br><br>to the potential material sustainability<br><br>matters, we aligned with our ASML risk<br><br>universe and engaged with internal<br><br>stakeholders and experts. Risks and<br><br>opportunities relate to our ability to<br><br>continue to use or obtain the resources<br><br>needed in our business processes, assets<br><br>and other relevant activities across our<br><br>value chain, and our ability to rely on<br><br>relationships needed in business<br><br>processes on acceptable terms.<br><br>They may pertain to financial capital,<br><br>manufactured capital, intellectual capital,<br><br>human capital, social and relationship<br><br>capital, and natural capital. In the<br><br>identification process of material climate-<br><br>related impacts, we considered our<br><br>current and locked-in greenhouse gas<br><br>(GHG) emissions as well as the potential<br><br>future GHG emissions in our own<br><br>operations and across the value chain.<br><br>For the identification of material climate-<br><br>related risks and opportunities, we<br><br>considered the outcomes of our climate<br><br>resilience analysis.	We assess the materiality of negative<br><br>impacts based on scale, scope,<br><br>irremediable character (also referred<br><br>to as severity) and, in case of potential<br><br>impacts, likelihood. Similarly, the<br><br>materiality of positive impacts is<br><br>assessed based on scale, scope and<br><br>likelihood. For potential negative<br><br>human-rights-related impacts,<br><br>severity takes precedence over<br><br>likelihood. The assessment of the<br><br>impacts has been done by the ESG<br><br>Sustainability team and has been<br><br>reviewed and validated with relevant<br><br>internal stakeholders, finance and risk<br><br>departments, before finalization and<br><br>adaptation by the BoM.	We assess the anticipated financial<br><br>effect of each risk and opportunity<br><br>based on magnitude and likelihood.<br><br>Magnitude considers effects on the<br><br>ability to continue to use resources,<br><br>including access, availability and<br><br>prices, and our ability to continue to<br><br>rely on relationships – taking into<br><br>account reputational effects and<br><br>potential actions by stakeholders in<br><br>the short, medium and long term.<br><br>Likelihood reflects the probability that<br><br>a risk or opportunity event will occur.<br><br>In this DMA only sustainability-related<br><br>risks and opportunities have been<br><br>taken into consideration. The<br><br>assessment of the risks and<br><br>opportunities has been done by the<br><br>ESG Sustainability team and has been<br><br>reviewed and validated with relevant<br><br>internal stakeholders, finance and risk<br><br>departments, before finalization and<br><br>adaptation by the BoM.	The assessment results in a<br><br>materiality ranging score (low,<br><br>medium or high) for each impact, risk<br><br>and opportunity, and we use these<br><br>scores to apply thresholds for<br><br>materiality. Thresholds are<br><br>determined separately for negative<br><br>impacts, positive impacts, risks and<br><br>opportunities. Only impacts, risks and<br><br>opportunities with an assessed score<br><br>of medium or high are considered to<br><br>be material. To provide an overview<br><br>of material sustainability matters,<br><br>impacts, risks and opportunities are<br><br>clustered into material sustainability<br><br>matters. Sustainability matters may<br><br>be material from the impact<br><br>perspective, the financial perspective<br><br>or both.	The outcomes of the materiality<br><br>assessment have been presented to<br><br>and approved by our BoM and serve<br><br>as the basis for the ESG<br><br>sustainability strategy. Material ESG<br><br>sustainability matters are linked to<br><br>themes in the ESG sustainability<br><br>strategy and the relevant value<br><br>drivers for each. If new material<br><br>matters are identified, they are added<br><br>to the ESG sustainability strategy.<br><br>If new risks are identified, they are<br><br>also included in our risk inventory<br><br>and managed in line with our ERM<br><br>framework. We define measures to<br><br>manage the related impacts, risks<br><br>and opportunities for each material<br><br>ESG sustainability matter, including<br><br>policies, action plans, metrics and<br><br>targets. All are disclosed under the<br><br>respective environmental, social and<br><br>governance sections – where we<br><br>describe our policies on how we<br><br>manage the impacts, risks and<br><br>opportunities, which actions we take<br><br>to address them, and the related<br><br>targets and metrics.
Read more in Strategic report – Our<br><br>business – Engaged stakeholders
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	180
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

The table below shows the material impacts, risks and opportunities included in the definition of each topic, whether these impacts

are positive or negative, actual or potential, and where in the value chain they occur

ESRS topics		Value chain		Our impacts	Time frame	Impact		Value chain		Our risks and opportunities	Time frame	Direction	How we are responding
Climate change		Own operations		Energy use and GHG emissions from manufacturing and<br><br>buildings (scope 1 and 2)				Own operations		Physical climate change risks to ASML (Climate resilience<br><br>analysis)			Read more in Energy<br><br>efficiency and climate action
	Own operations		Impact on grid and energy availability through our<br><br>manufacturing and buildings (scope 1 and 2)				Customers		Physical climate change risks to our customers (Climate<br><br>resilience analysis)
	Customers		Energy use and GHG emissions from product use (scope 3)				Downstream<br><br>beyond<br><br>customers		Increased market demand for low-carbon technologies<br><br>(Climate resilience analysis)
	Upstream and<br><br>suppliers		Energy use and GHG emissions from purchased goods,<br><br>services and logistics emissions (scope 3)				Across value<br><br>chain		Technology risk due to transition to low-carbon technologies<br><br>(Climate resilience analysis)
	Own operations		Energy use and GHG emissions from business travel and<br><br>commuting (scope 3)				Across value<br><br>chain		Climate-related regulation and carbon taxes (Climate<br><br>resilience analysis)
	Downstream<br><br>beyond<br><br>customers		Energy use and GHG emissions from use of our customers'<br><br>products (microchips) in various applications (ICT and society)1				Own operations		Damage to our brand and reputation (Climate resilience<br><br>analysis)
<br><br>		Downstream<br><br>beyond<br><br>customers		Reduction of energy use and GHG emissions from use of our<br><br>customers' products (microchips) in various applications (ICT<br><br>and society)1									Read more on page 195 >		Key
---	---	---	---
	Environmental topics	Positive, actual	Short term
	Social topics	Positive, potential	Medium term
	Governance topics	Negative, actual	Long term
		Negative, potential
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	181
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

ESRS topics		Value chain		Our impacts	Time frame	Impact		Value chain		Our risks and opportunities	Time frame	Direction	How we are responding
Resource use<br><br>and circular<br><br>economy		Own operations<br><br>and suppliers		Resource inflows in the production process (Systems, parts<br><br>and tools including packaging and transport tools)2				Own operations<br><br>and suppliers		Disruption to the supply chain caused by unavailability of<br><br>materials and parts (Systems, parts and tools including<br><br>packaging and transport tools)2			Read more in Circular<br><br>economy
	Own operations<br><br>and customers		Impact of our resource outflows at customers’ sites (Systems,<br><br>parts and tools including packaging and transport tools)2				Own operations<br><br>and customers		Loss of market share and dissatisfied customers through not<br><br>meeting agreed circular economy standards (Systems, parts<br><br>and tools including packaging and transport tools)2
	Own operations		Waste produced from our operations (Systems, parts and tools<br><br>including packaging and transport tools, non-product-related<br><br>(NPR) waste and Real estate)				Own operations<br><br>and customers		Inability to meet changing customer demands for more<br><br>circular products (Systems, parts and tools including<br><br>packaging and transport tools)
	Downstream<br><br>beyond<br><br>customers		Use of our customers' products enabling the transition to a<br><br>circular economy in various applications
<br><br>		Downstream<br><br>beyond<br><br>customers		Use of our customers' products hindering the transition to a<br><br>circular economy in various applications									Read more on page 235 >
Own workforce		Own operations		Impact on employees through fair labor conditions (Labor<br><br>conditions)				Own operations		Failure to provide fair labor conditions could result in<br><br>unavailability of personnel, disengaged employees, retention<br><br>and recruitment challenges (Talent attraction, employee<br><br>engagement and retention, and Labor conditions)			Read more in Attractive<br><br>workplace for all
	Own operations		Impact on employees by facilitating professional growth,<br><br>knowledge and skills development, contributing to continued<br><br>employability (Learning and development)				Own operations		Failure to foster an equal opportunity environment could result<br><br>in unavailability of personnel, disengaged employees, and<br><br>retention and recruitment challenges (Talent attraction,<br><br>employee engagement and retention, and Diversity and<br><br>inclusion)
	Own operations		Impact on employees by providing equal treatment and<br><br>opportunities for all (Diversity and inclusion)				Own operations		Failure to comply with health- and safety-related regulations<br><br>or implement effective health and safety practices could result<br><br>in liabilities and reputational risk (Occupational health and<br><br>safety)
	Own operations		Failure to effectively manage employees' health and well-being<br><br>could impact their work–life balance and mental health (Well-<br><br>being, Occupational health and safety)				Own operations		Failure to comply with labor law could lead to sanctions,<br><br>financial loss or reputational damage (Labor conditions)
<br><br>		Own operations		Failure to manage occupational health and safety – for example<br><br>when employees are working with hazardous substances and<br><br>systems (Occupational health and safety)									Read more on page 260 >		Key
---	---	---	---
	Environmental topics	Positive, actual	Short term
	Social topics	Positive, potential	Medium term
	Governance topics	Negative, actual	Long term
		Negative, potential
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	182
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

ESRS topics		Value chain		Our impacts	Time frame	Impact		Value chain		Our risks and opportunities	Time frame	Direction	How we are responding
Workers in the<br><br>value chain		Upstream<br><br>and suppliers		Inadequate or poor working conditions in our supply chain<br><br>(Responsible supply chain)				Upstream and<br><br>suppliers		Failure to comply with rules and regulations regarding conflict<br><br>minerals (Responsible supply chain)			Read more in Responsible<br><br>value chain
	Upstream<br><br>and suppliers		Lack of access to equal opportunities across our value chain<br><br>(Responsible supply chain)				Upstream and<br><br>suppliers		Disruption in the supply chain due to unavailability of workers<br><br>(Responsible supply chain)
	Upstream<br><br>and suppliers		Forced and child labor in conflict areas (Responsible supply<br><br>chain)
<br><br>		Customers		Impacts on human rights considering risks inherent to the<br><br>technology industry (Responsible product use)									Read more on page 288 >
ASML specific<br><br>topics		Downstream<br><br>beyond<br><br>customers		Improved quality of life through access to ICT and digital<br><br>services (Responsible product use)				Downstream<br><br>beyond<br><br>customers		Increased demand for microchip-enabled tools and solutions<br><br>that can help society make progress and address global<br><br>challenges (Responsible product use)			Read more in Responsible<br><br>value chain
		Downstream<br><br>beyond<br><br>customers		Impacts from potential misuse of technology (Responsible<br><br>product use)									<br><br>Read more on page 288 >
		Downstream<br><br>beyond<br><br>customers		Society benefiting from support for ESG-focused research,<br><br>startups, scaleups, platforms and collaboration (ESG<br><br>innovation)									Read more in Innovation<br><br>ecosystem<br><br><br><br>Read more on page 297 >
Affected<br><br>communities		Own operations		Pressure on availability of affordable housing in Veldhoven due<br><br>to demand from employees (Attractive communities)				Own operations		Failure to create an attractive community for future employees<br><br>could impact our ability to attract talent (Attractive<br><br>communities, Inclusive communities)			Read more in Valued<br><br>partner in our communities
	Own operations		Car congestion and pressure on regional infrastructure due to<br><br>employee commuting (Attractive communities)				Own operations		Addressing adverse reactions from local communities could<br><br>impact our ability to effectively manage our business<br><br>(Attractive communities)
	Own operations		Pressure on social cohesion in Veldhoven local community due<br><br>to a more diverse local population including ASML expats<br><br>(Attractive communities, Inclusive communities)				Own operations		Adverse reactions from local communities could impact our<br><br>ability to grow in Veldhoven (Attractive communities)
<br><br>		Own operations		Pressure on Veldhoven's regional talent pipeline impacting<br><br>local companies due to ASML's demand for talent (Inclusive<br><br>communities)				Own operations		Failure to create an attractive community for future talent<br><br>could impact our ability to effectively manage our local supply<br><br>chain output (Attractive communities, Inclusive communities)			Read more on page 306 >		Key
---	---	---	---
	Environmental topics	Positive, actual	Short term
	Social topics	Positive, potential	Medium term
	Governance topics	Negative, actual	Long term
		Negative, potential
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	183
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Impact, risk and opportunity management (continued)

ESRS topics	Value chain	Our impacts	Time frame	Impact		Value chain		Our risks and opportunities	Time frame	Direction		How we are responding
Business<br><br>conduct	Upstream and<br><br>suppliers	Impact on people, the environment and the supply chain<br><br>through the management of relationships with suppliers<br><br>(Responsible business conduct and compliance (covering<br><br>compliance with Business ethics and Code of Conduct and<br><br>Anti-bribery and anti-corruption))				Own operations		Failure to comply with ASML's purpose, vision, mission and<br><br>values (Purpose, vision, mission and values)				Read more in ESG<br><br>integrated governance
					Across entire<br><br>value chain		Failure to comply with regulations due to increasing<br><br>complexity as we expand into more countries (Responsible<br><br>business conduct and compliance (covering compliance with<br><br>Business ethics and Code of Conduct and Anti-bribery and<br><br>anti-corruption))
					Upstream and<br><br>suppliers		Failure to comply with laws and regulations for supply chain<br><br>due diligence (Responsible business conduct and compliance<br><br>(covering compliance with Business ethics and Code of<br><br>Conduct and Anti-bribery and anti-corruption))				Read more on page 322 >
					Customers		Failure to engage customers on environmental and social<br><br>topics (ESG risk management)				Read more in Strategic report –<br><br>Performance and risk – Risk –<br><br>How we manage risk on page 63 >
<br><br>						Across entire<br><br>value chain		Failure to comply with data privacy regulations or breaches of<br><br>data privacy (Responsible business conduct and compliance<br><br>(covering compliance with Business ethics and Code of<br><br>Conduct and Anti-bribery and anti-corruption))				Read more on page 322 >

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

Key
	Environmental topics	Positive, actual	Short term
	Social topics	Positive, potential	Medium term
	Governance topics	Negative, actual	Long term
		Negative, potential

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.

2. These impacts and risks are currently not covered by targets. Effectiveness of policies and actions in relation to both risks are tracked by ASML. These risks are covered within ASML's risk universe where specified risks are included related to the dissatisfaction of customers and inability to

develop and deploy products in a timely manner. Policies and actions are therefore tracked through the ASML ERM framework. No additional qualitative and/or quantitative indicators have been used to monitor progress related to these impacts, risks and opportunities (IROs).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	184
General disclosures	Environmental	Social	Governance
---	---	---	---

Water usage in the semiconductor industry

Why it matters

Metric	Unit	2024
Total water withdrawal	in 1,000 m3	1,432
Total ultrapure water withdrawal	in 1,000 m3	105
Total water recycled and reused	in %	0.9%
Water intensity	in m3/€m revenue	51

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 usage in our own operations is relatively small.

When printing patterns on wafers through lithography,

our systems at our customers' sites 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.

How we’re managing our impact

Despite our relatively low level of water usage, as a

responsible business we promote efficient water use

and recycling across our sites and processes.

Read more in our TCFD Report: Climate-related disclosure,

available at asml.com

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 lower-quality water. And, finally, deep ultraviolet (DUV)

systems use ultrapure water – which is currently only

partially recycled – in the immersion hood.

Our water withdrawal in 2024 was 1,432,410 m3.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	185
General disclosures	Environmental	Social	Governance
---	---	---	---

Contributing to the UN's Sustainable Development Goals

The United Nations’ (UN) 2030 Agenda for<br><br>Sustainable Development provides a shared<br><br>blueprint for peace and prosperity for people and<br><br>planet, now and in the future.<br><br>Why it matters<br><br>The UN’s Sustainable Development Goals (SDGs)<br><br>represent the global sustainable development agenda<br><br>and inform public policy. As a responsible business,<br><br>we support the SDGs – and it is critical that we<br><br>accelerate action to play our part. Our ESG<br><br>sustainability strategy focuses on the six SDGs where<br><br>we can contribute most. We are also a signatory to<br><br>the UN Global Compact.<br><br>How we’re managing our contribution<br><br>We contribute to SDG 4 (Quality education) by<br><br>developing our people and promoting lifelong<br><br>learning opportunities for the communities where we<br><br>operate. SDG 8 (Decent work and economic growth)<br><br>is covered by our commitment to providing an<br><br>attractive workplace promoting sustained, inclusive<br><br>growth, full and productive employment, and decent<br><br>work for all throughout our supply chain, including<br><br>protecting labor rights and promoting a safe and<br><br>secure working environment for everyone. Our<br><br>contribution to SDG 9 (Industry, innovation and<br><br>infrastructure) is demonstrated by our work to build a<br><br>resilient ecosystem that fosters innovation while<br><br>promoting inclusive and sustainable industrialization.<br><br>We contribute to SDG 11 (Sustainable cities and<br><br>communities) by working with our community<br><br>outreach partners to make cities and human<br><br>settlements inclusive, safe, resilient and sustainable.<br><br>SDG 12 (Responsible consumption and production)<br><br>is covered via our circular economy work and our<br><br>work to achieve environmentally sound management<br><br>of chemicals and all wastes throughout their life<br><br>cycles, in accordance with agreed international<br><br>frameworks. We contribute to SDG 13 (Climate<br><br>action) by promoting energy efficiency and climate<br><br>action across our value chain.
	SDG 4		SDG 11
	Quality education		Sustainable cities<br><br>and communities
	Ensure inclusive and equitable quality education and promote<br><br>lifelong learning opportunities for all	Make cities and human settlements inclusive, safe, resilient and<br><br>sustainable
	Our contribution	Our contribution
	– Attractive workplace for all Read more on page 260 >	– Valued partner in our communities Read more on page 306 >
	– Valued partner in our communities Read more on page 306 >
	SDG 8		SDG 12
	Decent work and<br><br>economic growth		Responsible consumption<br><br>and production
	Promote sustained, inclusive and sustainable economic growth,<br><br>full and productive employment and decent work for all	Ensure sustainable consumption and production patterns
	Our contribution	Our contribution
	– Attractive workplace for all Read more on page 260 >	– Circular economy Read more on page 235 >
	– Responsible value chain Read more on page 288 >	– Responsible value chain Read more on page 288 >
	SDG 9		SDG 13
	Industry, innovation<br><br>and infrastructure		Climate action
	Build resilient infrastructure, promote inclusive and sustainable<br><br>industrialization, and foster innovation	Take urgent action to combat climate change and its impacts by<br><br>regulating emissions and promoting developments in renewable<br><br>energy
	Our contribution	Our contribution
	– Innovation ecosystem Read more on page 297 >	– Energy efficiency and climate action Read more on page 195 >

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	186
General disclosures	Environmental	Social	Governance
---	---	---	---

Metrics

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

gauge 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. We remain committed to refining

and enhancing our metrics – to enable us to

continually offer the most accurate and pertinent

information to our stakeholders.

Currency presentation

In instances where the metrics necessitate a

representation in currency, we adhere to the Euro

(EUR), the presentation currency utilized in our

Financial statements – ensuring consistency and

coherence across all financial and sustainability

disclosures.

Tracking effectiveness of policies and actions

through targets

Target details

To focus our sustainability matters, we have set

targets characterized 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 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 our stakeholders.

Changes in targets and metrics

Any adjustments in targets or metrics are

thoroughly documented, including the rationale

behind the changes, to ensure transparency and

maintain the integrity of our sustainability

reporting.

No measurable target

For some sustainability matters it has not proven

possible to develop a target that meets all

requirements to provide the qualitative

characteristics of information. Despite the

absence of a set of measurable, quantitative

targets, we remain committed to tracking the

effectiveness of our policies and actions

concerning material sustainability-related

impacts, risks and opportunities.

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.

We are evaluating the feasibility of setting such

targets in the near future, actively considering the

establishment of measurable, outcome-oriented

targets – and anticipate setting these within the

next two years.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	187
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table

The 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.

ESRS number	Section title	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<br><br>•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
ESRS 2	General disclosures	BP-2 – Disclosures in relation to specific circumstances	•Sustainability statements – General disclosures – Basis for preparation
ESRS 2	General disclosures	GOV-1 – The role of the administrative, management and<br><br>supervisory bodies	•Sustainability statements – General disclosures – ESG sustainability<br><br>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<br><br>matters	Includes DR21d Board's gender diversity ratio and<br><br>DR21e Percentage of independent board members
ESRS 2	General disclosures	GOV-2 – Information provided to and sustainability matters<br><br>addressed by the undertaking’s administrative, management<br><br>and supervisory bodies	•Sustainability statements – General disclosures – ESG sustainability<br><br>governance<br><br>•Corporate governance – Corporate governance – Supervisory Board
ESRS 2	General disclosures	GOV-3 – Integration of sustainability-related performance<br><br>in incentive schemes	•Sustainability statements – General disclosures – ESG sustainability<br><br>governance<br><br>•Corporate governance – Corporate governance – Supervisory Board
ESRS 2	General disclosures	GOV-4 – Statement on due diligence	•Sustainability statements – General disclosures – ESG sustainability<br><br>governance	Includes DR30 Statement on due diligence
ESRS 2	General disclosures	GOV-5 – Risk management and internal controls over<br><br>sustainability reporting	•Sustainability statements – General disclosures – ESG sustainability<br><br>governance
ESRS 2	General disclosures	SBM-1 – Strategy, business model and value chain	•Strategic report – Our business – Our products and services<br><br>•Strategic report – Our business – Supporting our customers<br><br>•Strategic report – Our business – Our business strategy<br><br>•Strategic report – Our business – Driving innovation<br><br>•Strategic report – Our business – Our business model<br><br>•Sustainability statements – Social – Attractive workplace for all<br><br>•Sustainability statements – Social – Responsible value chain<br><br>•Sustainability statements – General disclosures – Contributing to the<br><br>UN's Sustainable Development Goals	DR40di Undertaking is active in fossil fuel (coal, oil<br><br>and gas) sector, DR40dii Undertaking is active in<br><br>chemicals production, DR40diii Undertaking is<br><br>active in controversial weapons and DR40div<br><br>Undertaking is active in cultivation and production<br><br>of tobacco not applicable
ESRS 2	General disclosures	SBM-2 – Interests and views of stakeholders	•Strategic report – Our business – Engaged stakeholders<br><br>•Strategic report – Our business – Our business strategy<br><br>•Strategic report – Our business – Our marketplace
ESRS 2	General disclosures	SBM-3 – Material impacts, risks and opportunities,<br><br>and their interaction with strategy and business model	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management	Phase-in provision applied for DR48e and AR18<br><br>(anticipated financial effects)
ESRS 2	General disclosures	IRO-1 – Description of the process to identify and assess material<br><br>impacts, risks and opportunities	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
ESRS 2	General disclosures	IRO-2 – Disclosure requirements in ESRS covered<br><br>by the undertaking’s sustainability statement	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	188
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

ESRS number	Section title	Related ESRS disclosure requirements	Reference	Explanation
ESRS 2	General disclosures	MDR-P – Policies adopted to manage material sustainability<br><br>matters	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – How we’re managing<br><br>•Sustainability statements – Environmental – Circular economy – How<br><br>we’re managing<br><br>•Sustainability statements – Social – Attractive workplace for all – How<br><br>we’re managing<br><br>•Sustainability statements – Social – Responsible value chain – How<br><br>we’re managing<br><br>•Sustainability statements – Social – Innovation ecosystem – How we’re<br><br>managing<br><br>•Sustainability statements – Social – Valued partner in our communities –<br><br>How we’re managing<br><br>•Sustainability statements – Governance – ESG integrated governance –<br><br>How we’re managing
ESRS 2	General disclosures	MDR-A – Actions and resources in relation to material<br><br>sustainability matters	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Our actions and resources<br><br>•Sustainability statements – Environmental – Circular economy – Our<br><br>actions and resources<br><br>•Sustainability statements – Social – Attractive workplace for all – Our<br><br>actions and resources<br><br>•Sustainability statements – Social – Responsible value chain – Our<br><br>actions and resources<br><br>•Sustainability statements – Social – Innovation ecosystem – Our actions<br><br>and resources<br><br>•Sustainability statements – Social – Valued partner in our communities –<br><br>Our actions and resources<br><br>•Sustainability statements – Governance – ESG integrated governance –<br><br>Our actions and resources
ESRS 2	General disclosures	MDR-M – Metrics in relation to material sustainability matters	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Targets and performance<br><br>•Sustainability statements – Environmental – Circular economy – Targets<br><br>and performance<br><br>•Sustainability statements – Social – Attractive workplace for all – Targets<br><br>and performance<br><br>•Sustainability statements – Social – Responsible value chain – Targets<br><br>and performance<br><br>•Sustainability statements – Social – Innovation ecosystem – Targets and<br><br>performance<br><br>•Sustainability statements – Social – Valued partner in our communities –<br><br>Targets and performance<br><br>•Sustainability statements – Governance – ESG integrated governance –<br><br>Targets and performance
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	189
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

ESRS number	Section title	Related ESRS disclosure requirements	Reference	Explanation
ESRS 2	General disclosures	MDR-T – Tracking effectiveness of policies and actions through<br><br>targets	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Targets and performance<br><br>•Sustainability statements – Environmental – Circular economy – Targets<br><br>and performance<br><br>•Sustainability statements – Social – Attractive workplace for all – Targets<br><br>and performance<br><br>•Sustainability statements – Social – Responsible value chain – Targets<br><br>and performance<br><br>•Sustainability statements – Social – Innovation ecosystem – Targets and<br><br>performance<br><br>•Sustainability statements – Social – Valued partner in our communities –<br><br>Targets and performance<br><br>•Sustainability statements – Governance – ESG integrated governance –<br><br>Targets and performance
ESRS E1	Climate change	GOV-3 – Integration of sustainability-related performance in<br><br>incentive schemes	•Corporate governance – Remuneration report – Board of Management<br><br>remuneration<br><br>•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Targets and performance
ESRS E1	Climate change	E1-1 – Transition plan for climate change mitigation	•Strategic report – Performance and risk – Risk – Risk factors – 5.<br><br>Operations<br><br>•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Climate Transition Plan	Includes DR14 Disclosure of transition plan for<br><br>climate change mitigation; DR16g Undertaking is<br><br>not excluded from EU Paris-aligned benchmarks
ESRS E1	Climate change	SBM-3 – Material impacts, risks and opportunities and their<br><br>interaction with strategy and business model	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Climate resilience analysis
ESRS E1	Climate change	IRO-1 – Description of the processes to identify and assess<br><br>material climate-related impacts, risks and opportunities	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management<br><br>•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Climate resilience analysis
ESRS E1	Climate change	E1-2 – Policies related to climate change mitigation and<br><br>adaptation	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – How we’re managing<br><br>•Strategic report – Performance and risk – Risk – Risk factors – 5.<br><br>Operations
ESRS E1	Climate change	E1-3 – Actions and resources in relation to climate change<br><br>policies	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Our actions and resources
ESRS E1	Climate change	E1-4 – Targets related to climate change mitigation and<br><br>adaptation	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Climate resilience analysis<br><br>•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Targets and performance	Includes DR34 GHG emissions reduction targets
ESRS E1	Climate change	E1-5 – Energy consumption and mix	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Metrics table and Additional disclosures	Includes DR37, DR38, DR40, DR41, DR42, DR43<br><br>Energy consumption
ESRS E1	Climate change	E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – Metrics table and Additional disclosures	Includes DR44 Gross Scope 1, 2, 3 and Total GHG<br><br>emissions and DR 53–55 GHG emissions intensity
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	190
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

ESRS number	Section title	Related ESRS disclosure requirements	Reference	Explanation
ESRS E1	Climate change	E1-7 – GHG removals and GHG mitigation projects financed<br><br>through carbon credits	•Sustainability statements – Environmental – Energy efficiency and<br><br>climate action – How we’re managing
ESRS E1	Climate change	E1-8 – Internal carbon pricing	•Sustainability statements – Environmental – Energy efficiency<br><br>and climate action – How we’re managing
ESRS E1	Climate change	E1-9 – Anticipated financial effects from material physical and<br><br>transition risks and potential climate-related opportunities	Not included	Phase-in provision applied
ESRS E2	Pollution			Not a material topic based on the outcome<br><br>of our DMA
ESRS E3	Water and marine resources			Not a material topic based on the outcome<br><br>of our DMA
ESRS E4	Biodiversity and ecosystems			Not a material topic based on the outcome<br><br>of our DMA
ESRS E5	Resource use and circular<br><br>economy	IRO-1 – Description of the processes to identify and assess<br><br>material resource use and circular economy-related impacts, risks<br><br>and opportunities	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
ESRS E5	Resource use and circular<br><br>economy	E5-1 – Policies related to resource use and circular economy	•Sustainability statements – Environmental – Circular economy – How<br><br>we're managing
ESRS E5	Resource use and circular<br><br>economy	E5-2 – Actions and resources related to resource use and circular<br><br>economy	•Sustainability statements – Environmental – Circular economy – Our<br><br>actions and resources
ESRS E5	Resource use and circular<br><br>economy	E5-3 – Targets related to resource use and circular economy	•Sustainability statements – Environmental – Circular economy – Targets<br><br>and performance
ESRS E5	Resource use and circular<br><br>economy	E5-4 – Resource inflows	•Sustainability statements – Environmental – Circular economy – Metrics<br><br>table and Additional disclosures
ESRS E5	Resource use and circular<br><br>economy	E5-5 – Resource outflows	•Sustainability statements – Environmental – Circular economy – Metrics<br><br>table and Additional disclosures	Includes DR37d Non-recycled waste and DR39<br><br>Hazardous waste and radioactive waste
ESRS E5	Resource use and circular<br><br>economy	E5-6 – Anticipated financial effects from resource use and circular<br><br>economy-related 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<br><br>opportunity management
ESRS S1	Own workforce	SBM-3 – Material impacts, risks and opportunities and their<br><br>interaction with strategy and business model	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management	Includes DR14f Risk of incidents of forced labor<br><br>and DR14g Risk of incidents of child labor
ESRS S1	Own workforce	S1-1 – Policies related to own workforce	•Strategic report – Corporate conduct – Respecting human rights<br><br>•Sustainability statements – General disclosures – ESG sustainability<br><br>governance<br><br>•Sustainability statements – Social – Attractive Workplace for all – How<br><br>we're managing	Includes DR20 Human rights policy commitments;<br><br>DR21 Due diligence policies on issues addressed<br><br>by the fundamental International Labor<br><br>Organization (ILO) Conventions 1 to 8; DR22<br><br>Processes and measures for preventing trafficking<br><br>in human beings and DR23 Workplace accident<br><br>prevention policy or management system
ESRS S1	Own workforce	S1-2 – Processes for engaging with own workforce and workers’<br><br>representatives about impacts	•Sustainability statements – Social – Responsible value chain – How<br><br>we're managing
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	191
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

ESRS number	Section title	Related ESRS disclosure requirements	Reference	Explanation
ESRS S1	Own workforce	S1-3 – Processes to remediate negative impacts and channels for<br><br>own workers to workforce to raise concerns	•Sustainability statements – Social – Responsible value chain – How<br><br>we're managing	Includes DR32c Grievance/complaints handling<br><br>mechanisms
ESRS S1	Own workforce	S1-4 – Taking action on material impacts on own workforce, and<br><br>approaches to managing material risks and pursuing material<br><br>opportunities related to own workforce, and effectiveness of<br><br>those actions	•Sustainability statements – Social – Attractive workplace for all – Our<br><br>actions and resources
ESRS S1	Own workforce	S1-5 – Targets related to managing material negative impacts,<br><br>advancing positive impacts, and managing material risks and<br><br>opportunities	•Sustainability statements – Social – Attractive workplace for all – Targets<br><br>and performance
ESRS S1	Own workforce	S1-6 – Characteristics of the undertaking’s employees	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures
ESRS S1	Own workforce	S1-7 – Characteristics of non-employees in the undertaking’s own<br><br>workforce	Not included	Phase-in provision applied
ESRS S1	Own workforce	S1-8 – Collective bargaining coverage and social dialogue	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures
ESRS S1	Own workforce	S1-9 – Diversity metrics	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures
ESRS S1	Own workforce	S1-10 – Adequate wages	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures
ESRS S1	Own workforce	S1-11 – Social protection	Not included	Phase-in provision applied
ESRS S1	Own workforce	S1-12 – Persons with disabilities	Not included	Phase-in provision applied
ESRS S1	Own workforce	S1-13 – Training and skills development metrics	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures
ESRS S1	Own workforce	S1-14 – Health and safety metrics	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures	Includes DR88b DR88c Number of fatalities and<br><br>number and rate of work-related accidents –<br><br>Phase-in provision applied for non-employees;<br><br>DR88d Number of cases of recordable work-<br><br>related ill health; DR88e Number of days lost to<br><br>injuries, accidents, fatalities or illness.
ESRS S1	Own workforce	S1-15 – Work-life balance metrics	Not included	Phase-in provision applied
ESRS S1	Own workforce	S1-16 – Remuneration metrics (pay gap and total remuneration)	•Sustainability statements – Social – Attractive workplace for all – Metrics<br><br>table and Additional disclosures	Includes DR97a Unadjusted gender pay gap and<br><br>DR97b CEO pay ratio
ESRS S1	Own workforce	S1-17 – Incidents, complaints and severe human rights impacts	•Sustainability statements – Governance – ESG integrated governance –<br><br>Metrics table and Additional disclosures	Includes DR103a Incidents of discrimination and<br><br>DR104a Non-respect of UN Guiding Principles on<br><br>Business and Human Rights (UNGPs) and OECD<br><br>Guidelines
ESRS S2	Workers in the value chain	SBM-2 – Interests and views of stakeholders	•Sustainability statements – General disclosures – Impact, risk<br><br>and opportunity management
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	192
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

ESRS number	Section title	Related ESRS disclosure requirements	Reference	Explanation
ESRS S2	Workers in the value chain	SBM-3 – Material impacts, risks and opportunities and their<br><br>interaction with strategy and business model	•Sustainability statements – General disclosures – Impact, risk<br><br>and opportunity management	Includes DR11b Significant risk of child labor or<br><br>forced labor in the value chain
ESRS S2	Workers in the value chain	S2-1 – Policies related to value chain workers	•Sustainability statements – Social – Responsible value chain – How<br><br>we're managing	Includes DR17 Human rights policy commitments;<br><br>DR18 Policies related to value chain workers;<br><br>DR19 Non-respect of UNGPs and OECD<br><br>Guidelines and Due diligence policies on issues<br><br>addressed by the fundamental ILO conventions 1<br><br>to 8
ESRS S2	Workers in the value chain	S2-2 – Processes for engaging with value chain workers about<br><br>impacts	•Sustainability statements – Social – Responsible value chain – How<br><br>we're managing
ESRS S2	Workers in the value chain	S2-3 – Processes to remediate negative impacts and channels for<br><br>value chain workers to raise concerns	•Sustainability statements – Social – Responsible value chain – How<br><br>we're managing
ESRS S2	Workers in the value chain	S2-4 – Taking action on material impacts on value chain workers,<br><br>and approaches to managing material risks and pursuing material<br><br>opportunities related to value chain workers, and effectiveness of<br><br>those actions	•Sustainability statements – Social – Responsible value chain – Our<br><br>actions and resources	Includes DR36 Human rights issues and incidents<br><br>connected to its upstream and downstream value<br><br>chain
ESRS S2	Workers in the value chain	S2-5 – Targets related to managing material negative impacts,<br><br>advancing positive impacts, and managing material risks and<br><br>opportunities	•Sustainability statements – Social – Responsible value chain – Targets<br><br>and performance
ESRS S3	Affected communities	SBM-2 – Interests and views of stakeholders	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
ESRS S3	Affected communities	SBM-3 – Material impacts, risks and opportunities and their<br><br>interaction with strategy and business model	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
ESRS S3	Affected communities	S3-1 – Policies related to affected communities	•Sustainability statements – Social – Valued partner in our communities –<br><br>How we're managing	Includes DR16 Human rights policy commitments;<br><br>DR17 Non-respect of UNGPs on Business and<br><br>Human Rights, ILO principles or OECD Guidelines
ESRS S3	Affected communities	S3-2 – Processes for engaging with affected communities about<br><br>impacts	•Sustainability statements – Social – Valued partner in our communities –<br><br>How we're managing
ESRS S3	Affected communities	S3-3 – Processes to remediate negative impacts and channels for<br><br>affected communities to raise concerns	•Sustainability statements – Social – Valued partner in our communities –<br><br>How we're managing
ESRS S3	Affected communities	S3-4 – Taking action on material impacts on affected<br><br>communities, and approaches to managing material risks and<br><br>pursuing material opportunities related to affected communities,<br><br>and effectiveness of those actions	•Strategic report – Corporate conduct – Respecting human rights<br><br>•Sustainability statements – General disclosures – ESG sustainability<br><br>governance<br><br>•Sustainability statements – Social – Valued partner in our communities –<br><br>Our actions and resources	Includes DR36 Human rights issues and incidents
ESRS S3	Affected communities	S3-5 – Targets related to managing material negative impacts,<br><br>advancing positive impacts, and managing material risks and<br><br>opportunities	•Sustainability statements – Social – Valued partner in our communities –<br><br>Targets and performance
ESRS S4	Consumers and end-users			Not a material topic based on the outcome of our<br><br>DMA
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	193
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Reference table (continued)

ESRS number	Section title	Related ESRS disclosure requirements	Reference	Explanation
ESRS G1	Business conduct	GOV-1 – The role of the administrative, supervisory and<br><br>management bodies	•Sustainability statements – Governance – ESG integrated governance
ESRS G1	Business conduct	IRO-1 – Description of the processes to identify and assess<br><br>material impacts, risks and opportunities	•Sustainability statements – General disclosures – Impact, risk and<br><br>opportunity management
ESRS G1	Business conduct	G1-1 – Business conduct policies and corporate culture	•Sustainability statements – Governance – ESG integrated governance	Includes DR10b United Nations Convention<br><br>against Corruption; DR10d Protection of whistle-<br><br>blowers
ESRS G1	Business conduct	G1-2 – Management of relationships with suppliers		Not a material sub-topic based on the outcome of<br><br>our DMA
ESRS G1	Business conduct	G1-3 – Prevention and detection of corruption and bribery	•Sustainability statements – Governance – ESG integrated governance
ESRS G1	Business conduct	G1-4 – Incidents of corruption or bribery	•Sustainability statements – Governance – ESG integrated governance	Includes DR24a Fines for violation of anti-<br><br>corruption and anti-bribery laws; DR24b Standards<br><br>of anti-corruption and anti-bribery
ESRS G1	Business conduct	G1-5 – Political influence and lobbying activities		Not a material sub-topic based on the outcome of<br><br>our DMA
ESRS G1	Business conduct	G1-6 – Payment practices		Not a material sub-topic based on the outcome of<br><br>our DMA

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	194
General disclosures	Environmental	Social	Governance
---	---	---	---

Environmental at a glance

Our ambition
We aim to reduce the<br><br>environmental footprint<br><br>of our operations and<br><br>supply chain, as well as<br><br>the environmental<br><br>impacts of our products<br><br>and services.
	On the following pages,<br><br>we set out our approach<br><br>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 in<br><br>the entire semiconductor value chain – in our<br><br>own operations together with our suppliers, in<br><br>our customers’ production processes, and<br><br>through reducing the energy used by<br><br>semiconductors in operation by enabling<br><br>scaling.	We’ll do this by focusing<br><br>on the 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<br><br>•Impact on ICT and society
We aim to be greenhouse gas neutral<br><br>across our value chain by 2040.
Read more on page 195 >			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.	We’ll do this by focusing<br><br>on the following sub-topics:
		•Systems<br><br>•Parts and tools including packaging and<br><br>transport tools<br><br>•Non-product-related (NPR) waste<br><br>(hazardous and non-hazardous)<br><br>•Real estate (building renovation<br><br>and construction)
	We aim for zero waste from operations<br><br>to landfill and incineration by 2030.
	Read more on page 235 >			The EU Taxonomy<br><br>at ASML
---
In our EU Taxonomy disclosure, we have<br><br>classified our environmentally sustainable<br><br>economic activities and investments and<br><br>report the related economic key<br><br>performance indicators of turnover, capex<br><br>and opex.<br><br>We report on the alignment assessment of<br><br>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 250 >

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	195
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action

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

Why it matters

...for the planet	...for ASML
As the world turns to technology to help<br><br>solve some of its most pressing challenges,<br><br>we provide innovative lithography solutions<br><br>for producing microchips that help society<br><br>reduce global energy use and mitigate<br><br>greenhouse gas (GHG) emissions.1 Our<br><br>goal is to expand the availability of<br><br>computing power and data storage<br><br>capability while reducing the environmental<br><br>impact of our operations, our supply chain<br><br>and the use of our products.	Growing demand for enhanced chip<br><br>functionality means the complexity and<br><br>energy consumption of microchip patterning<br><br>is increasing. Limiting global warming in line<br><br>with the Paris Agreement to 1.5°C needs<br><br>accelerated and increased action; therefore,<br><br>we are aiming for GHG neutrality across our<br><br>entire value chain by 2040, while energy<br><br>demand is increasing. We are also looking<br><br>at ways to mitigate our negative climate<br><br>impacts, mainly from our products’ energy<br><br>consumption and emissions from sourcing<br><br>and supply chain activities.<br><br>This complex challenge can only be<br><br>achieved by working closely with our value<br><br>chain partners.
1. To clearly demarcate the scope of our policy on energy efficiency and climate action, please note that ‘climate<br><br>action’ is defined as mitigation of GHG emissions. Within our policy, we refer to emissions as GHG emissions –<br><br>and, of these, CO2 emissions are most material to ASML.			Our 2024 progress:
---	---
32.8 kt	12.0 Mt
Scope 1 and 2<br><br>CO2e emissions	Scope 3<br><br>CO2e emissions
(2025 target: GHG neutral)	(2040 target: GHG neutral)
0.83 kt	5.9 kWh
Scope 3 intensity in CO2e<br><br>(per €m gross profit)	NXE energy use<br><br>per wafer pass
(2025 target: 0.93 kt)	(NXE:3800E, measured in 2024)<br><br>(2025 target: 5.1 kWh)
9%
Commitment of top 80%<br><br>suppliers
(based on CO2e emissions) to reduce their CO2e<br><br>footprint by 2030 (2026 target: 75%)
The transition to a business model that<br><br>strives to maximize energy efficiency<br><br>across our value chain – and that<br><br>combats climate change – is important:
---
...for our customers
Our approach contributes to their objectives to reduce<br><br>emissions resulting from their use of our products and<br><br>invites them to collaborate.
...for our employees
ESG sustainability is a key driver of both engagement –<br><br>our employees feeling engaged and empowered to<br><br>contribute – and our ability to attract new talent.
...for our suppliers
Our approach contributes to driving ESG sustainability<br><br>performance and encourages collaboration to<br><br>exchange experience and reduce emissions.
...for our shareholders
Our approach contributes to investors’ objectives – for<br><br>example, by improving sustainability performance and<br><br>reducing (climate-related) investment risk.
...for society
Our approach contributes to societal objectives to<br><br>reduce energy consumption and emissions – thereby<br><br>halting the advance of climate change.
Read more about our double materiality process<br><br>and identified impacts, risks and opportunities for<br><br>this theme in Sustainability statements – General<br><br>disclosures – Impact, risk and opportunity<br><br>management

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	196
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: How we’re managing

Our objective
We want to reduce our climate impacts,<br><br>working closely with our partners and peers<br><br>in the entire semiconductor value chain – in<br><br>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 reach our target of GHG neutrality<br><br>across our value chain by 2040 in stages –<br><br>across our manufacturing and buildings<br><br>(scope 1 and 2) and for business travel and<br><br>commuting (scope 3) by 2025, in our supply<br><br>chain (scope 3 upstream) by 2030, and from<br><br>the use of our products and services by<br><br>customers (scope 3 downstream) by 2040.<br><br>We are a signatory to the Science Based<br><br>Targets initiative (SBTi) and we have SBTi-<br><br>approved near-term gross targets for 2025, in<br><br>line with the 1.5°C scenario. We aim to obtain<br><br>SBTi approval for our 2040 gross targets,<br><br>which implies that we aim to reduce our<br><br>scope 1 and 2 GHG emissions by 90% and<br><br>scope 3 GHG emissions intensity per gross<br><br>profit by 97% compared to our base year<br><br>2019.<br><br>The How we’re managing section reflects our<br><br>policy on the Energy efficiency and climate<br><br>action topic, which is made publicly available<br><br>to our stakeholders via this Annual Report.
	Manufacturing<br><br>and buildings	Purchased goods<br><br>and services		Logistics		Business travel
			We work with our logistics<br><br>suppliers to improve emission<br><br>data quality related to<br><br>transportation and distribution<br><br>services, and we have started<br><br>using options to move toward<br><br>more sustainable modes of<br><br>transportation.		We focus on reducing our<br><br>business travel emissions by<br><br>applying a strict need-to-travel<br><br>policy, increasingly using the<br><br>train and electric vehicles for<br><br>shorter distances and sourcing<br><br>sustainable aviation fuel for part<br><br>of our air travel. Beginning in<br><br>2025, we plan to compensate<br><br>for residual CO2e emissions.
	Within our manufacturing<br><br>locations and other buildings,<br><br>we focus on reducing energy<br><br>consumption, using renewable<br><br>energy, and – as of 2025 –<br><br>compensating for residual CO2e<br><br>emissions.	Via our Strategic Sourcing and<br><br>Procurement sustainability<br><br>program, in cooperation with<br><br>our suppliers, we're aiming to<br><br>reduce our carbon footprint to<br><br>achieve GHG neutrality in our<br><br>supply chain by 2030.
	Employee commuting	Product use		Customers, ICT and society
	We focus on improving the data<br><br>quality of employee commuting<br><br>emissions worldwide, while also<br><br>extending emission reduction<br><br>initiatives from the Netherlands<br><br>to our other locations globally.<br><br>Beginning in 2025, we plan to<br><br>compensate for residual CO2e<br><br>emissions.	When designing new<br><br>lithography and metrology<br><br>and inspection systems, we<br><br>increasingly focus on reducing<br><br>their energy consumption.<br><br>In cooperation with our<br><br>customers, we're committed<br><br>to reducing our carbon footprint<br><br>to achieve GHG neutrality from<br><br>the use of our products and<br><br>services by 2040.		Our customers’ products are<br><br>used in a wide variety of<br><br>applications, impacting<br><br>society’s emissions, both<br><br>positively and negatively.<br><br>In collaboration with the<br><br>industry, we aim to have a<br><br>better understanding of the<br><br>GHG emissions caused by the<br><br>use of our customers’ products.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	197
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: How we're managing (continued)

Our approach

Our approach applies to ASML worldwide and

focuses on seven material sub-topics, tailored

to a combination of our organizational structure

and external standards (following the emissions

categorization of the GHG Protocol):

•Manufacturing and buildings

•Purchased goods and services

•Logistics

•Business travel

•Employee commuting

•Product use

•Impact on information and communications

technology (ICT) and society

Read more in Sustainability statements – General

disclosures – Impact, risk and opportunity

management

These sub-topics cover the most relevant

emission categories for ASML across scope

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

In addition, the ICT industry also has a

material impact on the broader emissions of

society, as defined by our DMA.

There are smaller scope 3 categories that we

do not address explicitly. Although the

resulting GHG emissions reduction is an

integral part of overall target-setting for scope

3, these categories (fuel- and energy-related

activities, waste generated in operations and

end-of-life treatment) make up less than 0.1%

of our total scope 3 emissions.

Read more in Sustainability statements – Circular

economy

Levers for action

We are committed to lowering our carbon

footprint across our operations and in our

supply chain. We are also increasing the

productivity of our products – reducing

their energy consumption per processed

wafer – and are working toward reducing

their absolute energy consumption, to

achieve GHG neutrality across our entire

value chain. We define GHG neutrality as

having our remaining emissions, after

ASML’s efforts to reach our GHG emission

reduction targets, compensated by the

same amount of tonnes (metric tons) of

carbon credits that are verified against

recognized quality standards.

We aim to achieve the above objectives

based on three principles:

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 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

Switching to renewable energy

Within our own operations, our focus is on

the shift to renewable electricity as we strive

to substantially reduce our gas consumption

through a combination of energy-saving and

electrification projects. For electricity, this

means firstly that we strive to maximize the

renewable electricity generation on our own

premises. For the remaining need, we aim to

source 100% credible renewable electricity

with the following quality 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 (start date of delivering electricity to

the grid) of newly contracted projects

maximally one year ago

•Bundled: Renewable electricity certificates

and electricity bundled in long-term

contracts

•Minimize risks: Screening for material

environmental or social negative impacts

or risks, and/or elements that turn the

environmental business case negative

•Fair price: With a fair market 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 (currently focusing on electricity).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	198
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: How we're managing (continued)

Levers for action

Compensating residual emissions

Following the hierarchy outlined above, we

aim to minimize GHG emissions from our

activities as much as possible. Where this

is not feasible, we plan to compensate

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,

in a phased approach, starting in 2025.

Although compensating residual emissions

enables us to become GHG neutral, this is

currently not considered a substitute for

reducing our emissions. As part of our

Climate Transition Plan, we have defined

separate (gross) emission reduction targets

that are pursued independently of any

offsetting. We strive to assemble a cost-

effective offset portfolio from projects that

fulfill best-practice quality criteria –

additionality, permanence, accurate

quantification and transparency – and are

validated by leading third-party standards. In

ASML’s offset portfolio only ‘removal’

offsets (nature- and/or tech-based) are

considered eligible.

The composition of our offset portfolio will

be based on 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 regulatory developments

in the EU. We intend that the initial portfolio

to offset our residual emissions (from 2025

onward) 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.

In addition to our selection criteria described

above, we will aim to prioritize sourcing

recent vintage offsets 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 achieved in recent

years. Offsetting residual emissions will start

in 2025. As of December 31, 2024, ASML

did not hold any VERs based on existing

contractual agreements.

We define our emissions from own activities

that qualify for compensation as of 2025

as our scope 1, scope 2 and scope 3

categories 6 (business travel) and 7

(employee commuting) emissions.

We expect that compensation as of 2030

for the 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. 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.

For more information on details behind each of the

levers, read more in Sustainability statements –

Environmental – Energy efficiency and climate

action – Climate Transition Plan

Making carbon a financial consideration

Our internal carbon price is intended to

guide decision-making in internal business

cases without creating direct monetary

flows. It 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 of our internal carbon

price will initially cover investment

decisions in the emission categories we

most directly control (our scope 1 and 2

emissions) and the use of our products

(scope 3 category 11 emissions), after

which we will look to expand the scope of

our internal carbon price to external

emission categories in collaboration with

our value chain partners.

The internal carbon price is currently not

used in asset valuations in the

Consolidated financial statements.

In 2024, our initial internal carbon price has

been defined at €200 per tonne of CO2e,

indexed with 4% per year by default.

We considered reference points such as

carbon credits based on EU European

Trading System (ETS) historical prices and

forecasts, willingness-to-pay benchmarks

based on a 30+ ICT industry peer group

analysis, 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 ensure it remains

aligned with our ESG ambition level.

We are currently rolling out this mechanism

and aim to use the internal carbon price for

all investment decisions in the intended

scope by 2025.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	199
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan

Introduction

Climate change is a global challenge that

requires urgent action by everyone. We have

been working hard to further strengthen and

execute our climate strategy for many years,

both internally in our operations and

externally with partners in our entire value

chain. We announced our climate ambitions

in 2021 to strengthen collaboration with our

suppliers and customers to mitigate our

negative climate impacts. To reduce

emissions from our own facilities, ASML is

currently executing its third five-year energy

savings master plan, and is increasing the

use of renewable electricity. Together with

our suppliers, we are working to jointly

reduce the carbon footprint of our supply

chain. In addition, we have an ongoing focus

in our research and development (R&D)

processes to increase the energy efficiency

of our products.

Our Climate Transition Plan is our strategic

roadmap that underpins 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 scenario to keep global

warming below 1.5°C is slowly getting out of

reach. We feel the world, including us, needs

to move faster – so we aim to be GHG

neutral across our value chain by 2040.

We commit to taking ambitious action by

driving our Climate Transition Plan in each of

the emission categories.

The base year for our Climate Transition

Plan is 2019 – selected as this was not

impacted by COVID-19, commonly used in

guidance and governmental targets, and it

aligns with the base year for our SBTi-

approved near-term targets (approved in

2021). The projected actions are all allocated

to the relevant improvement levers (1.

Reducing energy use, 2. Switching to

renewable energy and 3. Compensating

residual emissions).

Our Climate Transition Plan is embedded in

our business strategy to deliver on our ESG

sustainability ambitions. 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

through cross-functional meetings.

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 as described in

the previous section. The Board of

Management has adopted the Climate

Transition Plan, and it is discussed in the

ESG Committee of the Supervisory Board.

We commit to updating our Climate

Transition Plan on (at least) 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.

Levers for action

We aim to achieve our emission targets by

working on three improvement levers, as

described in the 'How we're managing'

section. Below we disclose the reduction

potential of each of these levers for our

scope 1, 2 and 3. The order below also

indicates the hierarchy of our efforts to

mitigate our climate change impacts.

1. Reducing energy use

We expect the key actions related to this

improvement lever to deliver roughly half of

the scope 1 and 2 emission reduction

needed to reach our reduction target of

90%.

For scope 3, we also expect the key

actions of this improvement lever to

contribute roughly half of the emission

reductions in our Climate Transition Plan –

see our scope 1, 2 and 3 pathway visuals.

2. Switching to renewable energy

We expect the key actions related to this

improvement lever to deliver roughly half of

the scope 1 and 2 emission reduction

needed to reach our reduction target of

90%.

For scope 3, we expect that this lever has a

reduction potential of 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 higher levels of

renewable energy.

3. Compensating residual emissions

We aim to achieve our GHG neutrality

targets first by reducing energy

consumption and then by switching to

renewable energy, so a minimized volume

of residual emissions must be

compensated. We plan to compensate

residual emissions from our manufacturing

and buildings, business travel and

employee commuting as of 2025.

We require our suppliers to deliver carbon-

neutral products (and therefore offset any

residual emissions for products delivered

to ASML) as of 2030. For our 2040

ambition, we assume our customers will

move toward 100% renewable electricity.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	200
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

Levers for action

GHG neutral ambition

In 2021, we presented our roadmap to GHG

neutrality across the value chain by 2040.

We defined GHG neutrality targets for each

of the material sub-topics related to energy

efficiency and climate action as depicted on

the right. Definitions have been updated in

line with the 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.

In previous years, we have published 'net

zero' ambitions toward 2025, 2030 and

2040 for our entire value chain. The CSRD

and the accompanying ESRS have adopted

the use of net zero terminology in line with

the most recent SBTi guidance. To avoid

confusion with the updated net zero

terminology and because our

decarbonization ambitions involve the use of

carbon credits, we decided to use the

terminology ‘greenhouse gas neutral’ to

describe our climate ambitions toward 2025,

2030 and 2040, as first announced in 2021.

We acknowledge that our success in

achieving our GHG neutrality targets

depends significantly on actions by other

parties; and need to work closely together

with our customers, suppliers and other

partners in our ecosystem. We have already

intensified our collaboration across the

industry value chain and will continue on this

path to drive ambitious climate action in our

industry.

The diagram on the right illustrates our

journey to GHG neutrality across our value

chain by 2040 for our most material

emission categories.

In 2024, we continued our short-term SBTi

targets, which we aim to reach by 2025.

In 2025, we aim to submit our near-term

target toward 2030 to SBTi for continuation,

and our long-term target toward 2040,

which are expected to be validated by SBTi

in the course of 2025.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	201
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

Science Based Target initiative (SBTi)

The Corporate Net-Zero Standard of<br><br>the SBTi is the world’s pre-eminent<br><br>framework for corporate net-zero target-<br><br>setting in line with climate science. It<br><br>includes the guidance, criteria and<br><br>recommendations companies need to<br><br>set science-based net-zero targets<br><br>consistent with limiting global temperature<br><br>rise to 1.5°C.<br><br>According to SBTi, companies can set<br><br>both absolute or emission intensity<br><br>targets. In absolute terms, the aim for<br><br>these targets is to roughly halve<br><br>emissions before 2030, while in the longer<br><br>term companies must cut all possible<br><br>emissions – usually more than 90% –<br><br>before 2050. For long-term emission<br><br>intensity targets, the required minimum<br><br>intensity reduction is 97%. We have<br><br>defined intensity as CO2e emissions per<br><br>unit of gross profit.

Scope 1 and 2 – Manufacturing and

buildings emissions

Our ambitions and progress

On the next page we visualize our projected

pathway to reduce our scope 1 and 2

emissions toward 2040. For total scope 1

and 2 emissions, the 2019 baseline value is

60 kt CO2e. In 2024, we expanded our

reporting boundaries for scope 1 and 2

emissions to include all premises owned and

leased by ASML. We also incorporated

emissions from our lease cars in our scope 1

and 2 calculation, leading to an increase in

base year emissions.

To help to ensure we are consistent with our

transition pathway – which is in line with the

objective of the Paris Agreement – we have

determined the following ambitions:

•Reduce absolute scope 1 and 2 GHG

emissions by 25.2% by 2025 from a 2019

base year: This ambition is validated and

approved by the SBTi in 2021, under the

‘near-term’ category. In 2024, with

emissions of 33 kt CO2e, we have already

reduced absolute scope 1 and 2 emissions

from 2019 by 46%, exceeding the SBTi

target.

•Reduce absolute scope 1 and 2 GHG

emissions by 75% by 2030 from a 2019

base year: We aim for CO2e emissions

below 15 kt by 2030.

•Reduce absolute scope 1 and 2 GHG

emissions by 90.0% by 2040 from a 2019

base year: We aim to lower our emissions

to below 6 kt CO2e by 2040.

•GHG neutral operations (scope 1 and 2)

by 2025: To achieve GHG neutrality, we

will use offsetting.

Avoided and reduced emissions

Avoided and reduced emissions are defined

by comparing a scenario of growth at

constant emission intensity since 2019

(dotted blue line), to a scenario that reflects

the historic emissions trajectory and

business-as-usual growth as of 2024 (dotted

pink line).

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 2024

Investor Day, and for the purpose of the

Climate Transition Plan only, we modeled

further growth from 2030 toward 2040.

For the business-as-usual growth scenario,

we do not anticipate growth in absolute

emissions, as we aim to develop gas-free

new buildings if and when our potential

growth requires so.

Taking into account the 2024 worldwide

scope of our manufacturing and buildings

emissions, we have been able to reduce our

scope 1 and 2 emissions from 60 kt to 33 kt

between 2019 and 2024 by deploying our

energy savings master plan of 2020–2025 –

achieving energy savings by, for example,

reusing waste heat from our factories for

office conditioning through our energy grids,

installing solar panels,

replacing chillers and optimizing the use of

air-conditioning systems. We have also been

working to increase the amount of

renewable electricity purchased for our

premises in multiple locations around the

world, covering large industrial locations in

Berlin and South Korea for the first time this

year.

Key actions for scope 1 and 2

In addition to past actions, the contribution

of future key actions to reach our 2040

target is shown at the right-hand side in the

visual.

Our energy savings master plans 2020–2025 and

2026–2030 – Improvement lever: Reduce

This includes, among other actions, the

reduction of natural gas consumption by

energy efficiency measures and

electrification for our main industrial

locations in the US, and increasing solar

capacity on our own buildings/premises.

Renewable electricity sourcing – Improvement

lever: Renew

We are driving a shift to renewable energy

by increasing the share of direct green

electricity purchases from renewable

electricity generated close to our premises.

In the Netherlands, we have a 10-year

purchase agreement for green electricity for

our installations toward 2030. In 2023, we

secured a long-term power purchase

agreement (PPA) in Taiwan, which became

operational in 2024. Additionally, we secured

a yearly contract in South Korea in 2024,

and a two-year contract in Germany that

extends through the end of 2025.

Further gas reduction and green gas sourcing –

Improvement levers: Reduce and Renew

In 2024, we started to assess further gas

reduction possibilities and the 'green/

renewable gas' market for gaseous fuels that

are produced from renewable sources and

are more sustainable alternatives than

conventional fossil-fuel-based natural gas.

We will soon decide whether we want to

include this option in our mid- to long-term

purchase portfolio.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	202
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

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, as those 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 Supervisory Board has applied an LTI performance measure on scope 1 and 2 emissions for the 2023-2025 period. Read more in the Board of Management remuneration section.

3.In 2025, we aim to submit our near-term and long-term targets toward 2030 and 2040 to SBTi for continuation.

4.The description of avoided and reduced emissions, included on the next page, is on ASML’s company level, which differs from the guidance by the GHG Protocol on estimating and reporting avoided emissions, which is on product level.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	203
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

Scope 3 emissions

Scope 3 emissions include both upstream

and downstream activities, and mainly

comprise emissions generated in our supply

chain, through business travel and

commuting, and through use of our products

at our customers’ sites. We measure

progress in reducing our scope 3 emissions

by emission intensity – that is, total scope 3

emissions (tonnes CO2e) against total gross

profit (€ millions) and absolute reduction.

Our ambitions and progress

We illustrate our projected pathway to

reduce our scope 3 emissions toward 2040.

The baseline value in 2019 is 7.6 Mt CO2e.

To ensure we are consistent with our

transition pathway – which is in line with the

objective of the Paris Agreement – we have

determined the following ambitions for our

total scope 3 emissions:

•Reduce scope 3 GHG emissions 35.3%

per €m gross profit by 2025 from a 2019

base year: This ambition is validated and

approved by the SBTi under the ‘near-

term’ category and represents an intensity

reduction of 1.44 kt per € million gross

profit. Our scope 3 emissions intensity for

2024 was 0.83 kt CO2e per € million gross

profit. We aim for CO2e emissions below

15.7 Mt by 2025. We are still on track to

achieve our SBTi target of 0.93 kt CO2e

per € million expected gross profit in 2025.

•Reduce scope 3 GHG emissions 55.0%

per €m gross profit by 2030 from a 2019

base year: We aim for CO2e emissions

below 19.5 Mt by 2030.

•Reduce scope 3 GHG emissions 97.0%

per €m gross profit by 2040 from a 2019

base year: We aim for CO2e emissions

below 2.3 Mt by 2040.

In 2024, in absolute terms, scope 3

emissions accounted for 12.0 Mt – or

99.7% – of our total emissions footprint.

Of this 12.0 Mt, 5.5 Mt were ‘upstream’

emissions – mainly related to the goods and

services we buy and ship – and including 0.1

Mt from business travel and commuting. 6.6

Mt were indirect ‘downstream’ emissions

from the use of sold products at our

customers’ sites. We expect emissions to

continue rising in the short term due to our

continued growth and more complex

products. To ensure we meet our ambition,

we need to work together with our value

chain partners to stabilize and then decrease

emissions – for example, by increasing the

capacity of renewable electricity in some

regions of the world.

Avoided and reduced emissions

Avoided and reduced emissions are defined

by comparing a scenario of growth at

constant emission intensity since 2019

(dotted blue line), to a scenario that reflects

the historic emissions trajectory and

business-as-usual growth as of 2024 (dotted

pink line). The difference between these two

lines visualizes the combined impact of

efficient scaling (avoided emissions) and

past actions (reduced emissions).

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 2024

Investor Day, and for the purpose of the

Climate Transition Plan only, we modeled

further growth from 2030 toward 2040.

For the business-as-usual growth scenario,

we modeled the projected 2040 scope 3

emissions based on progress made so far

with our reduction efforts (2024 emissions)

and expected scaling of different parameters

that drive emission growth, such as the

number of systems sold and employee

headcount.

Global decarbonization

Global decarbonization reflects the assumed

emission reductions from the external trend

of electricity grids gradually shifting to more

renewables, and as a result decreasing the

emission factors of average grid electricity.

This is considered an exogenous effect and

is therefore not considered part of our

emission reductions. Global decarbonization

is modeled based on current global emission

factors and the foreseen global emission

factors toward 2030 and 2040 as per the

International Energy Agency (IEA) database.

Key actions for scope 3

The contributions of our key actions toward

our targets are visualized on the next page.

Detailed explanations can be found in the

sections ‘Key actions for scope 3 supply

chain and logistics emissions’ and ‘Key

actions for scope 3 product use emissions’

starting on the page after the next visual.

Innovation gap

The innovation gap shows the additional

emission reductions needed, after the

current key actions, in order to reach the

2040 target. We aim to close the innovation

gap in collaboration with our supply chain

partners and customers based on additional

actions to be taken and agreed upon in the

(near) future.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	204
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

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, as those were based on the reporting scopes and calculation methodologies used in the respective years.

2.In 2025, we aim to submit our near-term and long-term targets toward 2030 and 2040 to SBTi for continuation.

3.The description of avoided and reduced emissions, included on the next page, is on ASML’s company level, which differs from the guidance by the GHG Protocol on estimating and reporting avoided emissions, which is on product level.

4.Historic emissions for business travel and employee commuting are too small to be included in the visual.

5.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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	205
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

Scope 3 – Business travel and commuting

emissions

Our progress and ambitions

For scope 3 business travel and commuting,

we take 97 kt and 42 kt as the respective

2019 baselines.

We have seen a significant drop between

2020 and 2022 due to the COVID-19 travel

restrictions – and an increase since.

However, in 2024 our business travel

emissions are 65 kt and our commuting

emissions are 36 kt. Total business travel

and commuting emissions for 2024 add up

to 101 kt. Compared with the baseline, the

decrease is mainly related to the travel

budget restrictions offset with an increase of

employees commuting to work.

We have determined the following ambition

for our business travel and commuting

emissions:

•Become GHG neutral for scope 3

emissions from business travel and

commuting by 2025

Read more about the actions related to these scope

3 categories in Sustainability statements –

Environmental – Energy efficiency and climate

action – Business travel and Employee commuting

Scope 3 – Supply chain (purchased goods

& services) and logistics emissions

Our progress and ambitions

The 2019 baselines for scope 3 supply chain

and logistics emissions are respectively

2,841 kt and 213 kt, adding up to a total of

3,054 kt.

Within the supply chain, our related

emissions have increased compared to the

2019 baseline, primarily caused by our

growth and accompanying spend. As we

have calculated our emissions based on

spend, this is a logical trend. We have been

working on improving data quality through

closer collaboration with our suppliers, as an

enabling step to reduce our supply chain

emissions in the near future. In 2024, our

supply chain emissions were 5,032 kt and

our logistics emissions were 322 kt, adding

up to a total of 5,354 kt.

For our supply chain and logistics emissions,

we have determined the following ambition:

•Become GHG neutral for scope 3

emissions from supply chain and

logistics by 2030

Key actions for scope 3 supply chain

and logistics emissions

Supplier commitments to reduce emissions by

2030 – Improvement levers: Reduce and Renew

One of our main actions is closer

collaboration with our suppliers, as part

of our Strategic Sourcing & Procurement

(SS&P) ESG sustainability program.

We actively engage and collaborate with

our supply chain partners to adopt more

sustainable sourcing practices and ask them

to commit to reducing or offsetting their

scopes 1, 2 and 3 emissions by 2030.

As part of our program, we also encourage

our suppliers to develop roadmaps to use

more renewable energy where possible.

This is reflected in some of the industry

partnerships we participate in, such as our

partnership with SEMI – through which we

advocate within the industry to reduce

emissions and increase the availability of

renewable energy in regions with limited

capacity.

From air to ocean freight in logistics operations –

Improvement lever: Reduce

We have developed a program to increase

return shipments (of empty containers) by

sea, as opposed to the current common

practice of returning shipments by air.

In 2024, we transported our first new deep

ultraviolet lithography (DUV) and YieldStar

systems to a customer via ocean freight and

aim to use this method for more outbound

shipments in the future.

Scope 3 – Product use emissions

Our progress and ambitions

The baseline for scope 3 product use

emissions is 4,374 kt in 2019. Emissions

related to the use of our products have also

seen an increase between 2019 and 2024

due to growing sales volumes. In 2024, our

product use emissions were 6,569 kt.

However, we do see decreasing energy use

per wafer pass. We measure the energy

efficiency of our systems on total energy

consumption per system and per wafer

pass.

We have worked on energy efficiency

roadmaps for our different product

categories – extreme ultraviolet lithography

(EUV), DUV, and metrology and inspection

systems – to ensure less energy is required

to produce a chip, providing the opportunity

for our customers to reduce their scope 2

emissions. However, the biggest impact is

achieved by customers purchasing green

electricity for their manufacturing locations,

which we are further stimulating through

active participation in the Semiconductor

Climate Consortium (SCC).

For our product use emissions we have

determined the following ambition:

•Become GHG neutral for scope 3

emissions from product use by 2040

Key actions for scope 3 product use emissions

Energy reduction roadmaps 2030 (EUV, DUV,

metrology and inspection) – Improvement lever:

Reduce

The largest portion of our (indirect) GHG

emissions arises during use of our systems

at customers’ factories. In order to reduce

those emissions, we develop system

roadmaps that aim to improve the energy

efficiency of all our main product lines (EUV,

DUV, metrology and inspection systems,

and computational lithography). These

roadmaps have been developed toward

2030 (with draft numbers until 2040) and are

updated on a regular basis to ensure

adoption of the latest technologies in future

products.

Concrete examples include the introduction

of sleep modes for our lithography systems

to reduce power consumption when not in

use, actions to improve the energy efficiency

of the EUV source, and actions to make our

future EUV systems compatible with higher-

temperature cooling water.

Semiconductor Climate Consortium (SCC) –

Improvement lever: Renew

The largest portion of emission reductions

during the use phase of our systems at

customer sites can be achieved if customers

switch to renewable electricity sources.

Therefore, we actively promote industry-

wide collaboration to reduce GHG emissions

across our value chain – through both direct

engagement with customers and industry

collaborations such as the SCC. Being one

of the founding members of the SCC, we

work together with our value chain partners

to commit to becoming more transparent by

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	206
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate Transition Plan (continued)

reporting progress on scopes 1, 2 and 3

emissions annually, setting near- and long-

term decarbonization targets with the aim of

reaching GHG neutrality by 2040, and

improving collaboration to align on sharing

best practices, technology innovations and

communication channels to continuously

reduce GHG emissions.

Dependencies, challenges and locked-in

emissions

To achieve our ambitions, we are dependent

on the actions taken by our customers

(uptake of renewable energy) and suppliers

(for example compensating residual

emissions from products to ASML). The

complexity of our supply chain with a long

tail existing of many different tiers is adding

additional challenges. We are also

dependent on the accessibility of affordable

low-carbon energy, which is not available in

all regions where we and our suppliers and

customers operate. Lastly, 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 – which are emissions

caused by our assets and products sold

within their operational lifetime. We still use

gas boilers at multiple locations, 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. 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 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

these materials are used in our products and

account for most of the weight of our

machines. Currently there are no viable low-

carbon alternatives and the production

industries for both these materials are not

aligned with the Net Zero Emissions by 2050

(NZE) Scenario provided by the International

Energy Agency (IEA).

We will explore opportunities in these areas.

As an 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 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

materials to be recycled, and aim to use

more recycled content in raw materials.

Lastly, we are also looking into sourcing

certified materials to ensure these type of

materials adhere to internationally recognized

sustainability standards.

Potential impact of changes

in our product portfolio

To determine the emission-reduction

trajectory for our Climate Transition Plan, we

use an internal modeling tool – enabling us to

calculate different pathways. The

development over time of our sales product

mix (EUV and DUV lithography systems,

metrology and inspection systems,

computational lithography solutions, and

system and process control software) 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 and existing product families have been

modeled, as we do not yet have a sufficiently

clear view on the potential emission increases

or reductions.

Toward the future, we will keep monitoring

these innovative developments, and where

needed incorporate these in our plans.

Climate Transition Plan investments

In order to achieve our ESG sustainability

and climate action ambitions toward 2030

and 2040, we need to make significant

investments. These include:

•Capital expenditure (e.g. 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 (e.g. investment 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

topic-specific sections following. 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 be

unable, to meet all the technical screening

criteria from the EU Taxonomy, as explained

in our Circular Economy section. We do

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.

Read more in Sustainability statements –

Environmental – EU Taxonomy

EU-Paris-aligned benchmarks

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. ASML is

not excluded from EU Paris-aligned

benchmarks.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	207
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Manufacturing and buildings

Our scope

In scope are our scope 1 and 2 emissions

from manufacturing and buildings, which

include our manufacturing locations and

both owned and leased office locations

worldwide. From 2024 onward, we report on

all buildings (160+ in total). The baseline

values are updated accordingly. In our base

year (2019), our reporting scope was 20

buildings, which at the time accounted for

more than 95% of our emissions.

Scope 1 emissions comprise direct CO2

emissions from the use of natural gas and

process CO2 in our operations, and the

usage of lease cars. The larger part of our

natural gas consumption is for heating and

humidification of our buildings.

Scope 2 emissions arise from our purchased

electricity, which accounts for approximately

80% 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.

Read more about our scope 1 and 2 calculation

methodology in Sustainability statements –

Environmental – Energy efficiency and climate

action – Additional disclosures – Methodology on

metrics

Why it matters: Impacts, risks and<br><br>opportunities
For manufacturing and buildings, we<br><br>have identified the following:
Impacts:
	Energy use and GHG emissions from<br><br>manufacturing and buildings (scope<br><br>1 and 2)
	Impact on grid and energy availability<br><br>through our manufacturing and<br><br>buildings (scope 1 and 2)
Risks and opportunities:
Read more about climate-related risks and<br><br>opportunities in Strategic report – Performance<br><br>and risk – Risk and Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Climate resilience analysis			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Scope 1 – Direct emissions from fossil fuels in our<br><br>operations (kt)	kt	23.5	GHG neutral	2025	On track ò
Scope 2 – Indirect emissions from energy consumption<br><br>(kt) (market-based)	kt	9.3	GHG neutral	2025	On track ò
Energy savings worldwide through projects (in TJ) –<br><br>cumulative	TJ	100	100	2025	On track ò
Renewable electricity (in % total electricity<br><br>purchased – scope 2)	%	96%	100%	2025	Work to be done n

Become GHG neutral for scope 1 and 2

emissions from our manufacturing and

buildings by 2025

We have been able to reduce our scope 1

and 2 emissions from 60 kt to 33 kt between

2019 and 2024 by deploying our energy

savings master plan of 2020–2025 and

purchasing more renewable electricity.

Our GHG emission reduction targets and

progress on scope 1 and 2 are discussed in

detail in our Climate Transition Plan. The

residual emissions will be compensated as

of 2025 to reach our target. Our projected

pathway to GHG neutrality is visualized on

the next page.

We have defined two additional targets

related to manufacturing and buildings:

Achieve energy savings of 100 TJ/year by

2025 through infrastructural projects

executed in the period 2021–2025 in our

own operations worldwide

In 2024, as part of our energy savings

master plan, we executed key projects in the

Netherlands, the US, Germany (Berlin) and

Taiwan, resulting in 53 TJ of annual energy

savings.

Total energy savings amounted to 100 TJ as

a result of projects executed between 2021

and 2024.

Of the total target of 100 TJ per year from

projects, 13 TJ per year was achieved in

2021, 19 TJ per year in 2022 and an

additional 15 TJ per year in 2023.

Purchase 100% renewable electricity for

our own operations worldwide by 2025

At the end of 2024 the share of renewable

electricity was 96%, against our target of

100%. This level was achieved by securing a

long-term power purchase agreement (PPA)

in Taiwan in 2023, which became

operational in 2024, and similar agreements

in Germany and South Korea which were

secured in 2024. We purchased more

renewable electricity in 2024, because in

2024 we aimed to stay below the 2023

emission level, while we report on all

buildings from 2024 onward. This is the

equivalent of the emission reduction in Asia

(~17 kt), the US (~3 kt) and Europe (~29 kt).

We track our performance through progress

performance meetings with senior leadership

and cross-functional table meetings in which

progress is reported toward our targets.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	208
General disclosures	Environmental	Social	Governance
---	---	---	---

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

Our actions and resources

Our efforts within our own manufacturing

locations and other buildings focus on

reducing our consumption of energy, using

renewable electricity and – as of 2025 –

compensating for residual CO2e emissions.

Progressing with our master plan to

reduce energy consumption

We have a five-year energy savings master

plan covering each of our five largest

industrial sites and comprising over 80

projects. It aims 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.

This is the equivalent of 14 kt CO2e using

location-based emission factors.

The main components of the master plan are

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/G-

SEED (Green Standard for Energy and

Environmental Design) in South Korea.

Reducing our use of natural gas is also a key

objective. We have a multiyear project to

implement an energy grid to reuse waste

heat from our factories and offices at our site

in Veldhoven – a two-pipe loop that makes

waste heat available for heating in winter

and energy-efficient cooling in summer –

and are also applying adiabatic

humidification.

Based on our plans, we can calculate that

the use of natural gas in Veldhoven will be

reduced from around 4.4 million m3 (baseline

2019) to around 2.3 million m3 in 2025,

driven by the energy grid and other energy-

saving measures – including using heat

pumps instead of combustion heating.

Key energy-saving projects in 2024
In 2024, we saw an acceleration of the<br><br>energy-saving projects in the master plan.<br><br>These included:<br><br>•Installation of solar panels in San Diego<br><br>(US) leading to 6 TJ per year savings in<br><br>2024<br><br>•The operationalization of the energy grid<br><br>and renovation of buildings in the<br><br>Netherlands leading to an additional 32<br><br>TJ per year by the end of 2024<br><br>•Energy efficiency and LED lighting<br><br>projects in Berlin resulting in<br><br>approximately 6 TJ energy savings per<br><br>year<br><br>•Smaller projects completed this year,<br><br>such as pipe isolation and air flow<br><br>improvements in Wilton (US), leading to<br><br>approximately 7 TJ energy savings per<br><br>year<br><br>•Cooling water pump replacement and<br><br>process cooling water optimization in<br><br>Taiwan resulted in 2 TJ energy savings<br><br>per year<br><br>Together with the projects realized as of<br><br>2021, we met our target, of saving 100 TJ<br><br>per year by 2025 ahead of schedule in<br><br>2024.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	209
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

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

Using renewable energy

We are 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

fourth year of a 10-year purchase agreement

for green electricity for our installations, and

we are increasing the share of our own

renewable electricity generation through

increasing our number of solar panels.

In Taiwan, we have signed a five-year power

purchase agreement (PPA) with the aim of

providing our operations there with about 65%

renewable electricity in 2024. Since we do not

use gas in Taiwan, our ambition is to reach

100% renewable energy here by the end of

2025. In South Korea, although the renewable

electricity market is limited, we purchased

about 69% renewable electricity in 2024, with

the remainder planned for 2025, depending on

the availability of renewable electricity on the

local market.

Resources

The 2024 total investments for our five-year

energy savings master plan amounted to

€126 million, of which the projects for the

energy grid in Veldhoven, the renovation of

office buildings in Veldhoven and the solar

panels for our San Diego location are the

most significant.

The investments are included in the

Consolidated financial statements under

Property, plant and equipment. At ASML,

approximately 10 FTEs are working for the

energy savings master plan. The total

estimated cost of €1.4 million relating to

FTEs is included within the Consolidated

financial statements under Selling, general

and administrative costs.

Our solar panel and energy grid investments

directly contribute to our target of 100 TJ

savings by 2025. The capital expenditure

(capex) is assessed under EU Taxonomy

activities CCM 4.1 Electricity generation

using solar photovoltaic technology and

CCM 4.9 Transmission & distribution of

electricity.

For the renovation of buildings, we have

included the total investments. The

incremental part of the investments directly

contributing to the achievement of 100 TJ

savings by 2025 cannot be derived from our

total renovation expenditure. We have

renovated multiple buildings over the past

year: the capex corresponding to these

renovations 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 of the renovation is on improving

energy efficiency rather than circularity.

In 2025, to further execute on our 2021-2025

energy savings master plan, we expect to

invest approximately €63 million on matters

including the renovation of buildings, solar

panels and multiple smaller infrastructural

improvements at our sites.

Read more in Sustainability statements –

Environmental – EU Taxonomy

With respect to the financial resources for

our goal to maximize our share of renewable

electricity toward 100% in 2025, we

acknowledge the external trend of global

decarbonization by integrating renewables

into the grids by operators. We also have

long-term PPAs in place that commenced

before this reporting period. Therefore, we

do not assess the incremental part of our

investments in renewable electricity

contracts that directly contribute to our

target. We do report the share and types of

energy attribute certificates (EACs) to report

our market-based scope 2 emissions in the

metrics table on page 219. The total

operational expenditure (opex) for these

EACs amounts to €4.8 million for 2024 and

is included within the Consolidated financial

statements under Selling, general and

administrative costs. To reach our 2025

target, we expect to purchase EACs for

€7.3 million in 2025.

In 2022, we established a Green Bond

Framework as an overarching platform under

which the company intends to issue green

bonds to finance and/or refinance green

projects with a positive environmental

benefit. This Green Bond Framework is

based on the 2021 version of the

International Capital Markets Association

(ICMA) Green Bond Principles. The Green

Bond Allocation and Impact Reports are

available via our website. In 2022, the

standards for reporting under the EU

Taxonomy Regulation differed from the

Green Bond Principles standards of the

ICMA, which leads to different results on

these different standards. After 2022, we

have not issued Green Bonds.

Looking ahead

In 2025, we will continue to purchase

renewable energy and we will start

purchasing and retiring carbon credits to

reach our GHG neutrality target.

The execution of energy-saving projects is

on track and we already met our 100 TJ

target in 2024. We will exceed the target by

the end of 2025 due to the projects to be

operationalized in 2025, including our

energy-saving projects in Berlin and the

operationalization of our energy grid.

In the coming years, we also plan to expand

the use of solar panels at our sites in EMEA,

the US and Asia – and we aim to have more

than 9,000 solar panels on our roofs by

2025. Due to shifts in the roadmap this is

less than our initial ambition of placing

20,000 solar panels by the year end of 2025,

yet the projects we have in our portfolio for

the period 2026–2030 should realize our

initial ambition. This would give us a total

energy saving of around 30 TJ per year and

a total CO2e emission reduction of around 5

kt per year – equivalent to the energy use of

(on average) 3,900 households per year,

taking 2,100 cars off the road or planting

around 250,000 new trees (around six for

every ASML employee).

In 2024, the continuation of the energy

savings master plan was drafted for the

2026–2030 time frame.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	210
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Purchased goods and services

Our scope

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

include scope 3, categories 1 and 2.

Read more about our scope 3 calculation

methodology in Sustainability statements –

Environmental – Energy efficiency and climate

action – Additional disclosures – Methodology on

metrics

Why it matters: Impacts, risks and<br><br>opportunities
For purchased goods and services, we<br><br>have identified the following:
Impacts:
	Energy use and GHG emissions from<br><br>purchased goods, services and logistics<br><br>emissions (scope 3)
Read more in Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Logistics
Risks and opportunities:
Read more about climate-related risks and<br><br>opportunities in Strategic report – Performance<br><br>and risk – Risk and Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Climate resilience analysis			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Commitment from our top 80% suppliers<br><br>to reduce their CO2e footprint by 2030	%	9%	75%<br><br>commitment	2026	Work to be done  n
Scope 3 emissions related to purchased<br><br>goods and services (including capital<br><br>goods)	kt	5,032	GHG neutral	2030	Work to be done n

We have two targets for our scope 3

emissions related to purchased goods and

services:

Get commitment from our top 80%

suppliers to reduce their CO2e footprint

toward GHG neutrality by 2030

By year end 2024, 9% of our top suppliers in

scope had committed to reducing their CO2e

footprint toward GHG neutrality by 2030. In

2024 we aimed to have a commitment of

20% to enable us to be on track to make our

2026 target. However, our performance in

2024 was below this goal because it was a

learning year during which gaining insights

into how our suppliers calculate their

emissions, as well as getting their

commitment, took longer than expected.

In 2025, we aim to be back on track to meet

our 2026 target of 75% commitment from

our top 80% suppliers (based on CO2e

emissions) to reduce their CO2e footprint

toward GHG neutrality.

Become GHG neutral for scope 3

emissions related to purchased goods

and services (including capital goods) by

2030

The base year is 2019, with scope 3

emissions related to purchased goods and

services (including capital goods) of 2,841

kt. In 2024, total emissions due to

purchased goods and services and capital

goods were 5,032 kt CO2e. This increase

from the baseline is due to growth of our

business, which requires more purchases of

goods and services.

We expect future compensation for the

supply chain emissions (remaining scope 3

categories 1, 2 and 4 emissions after

reduction) to take place in the upstream

value chain, at the level and expense of our

suppliers. We track our performance through

progress performance meetings with senior

leadership and cross-functional table

meetings in which progress toward our

targets is reported.

Purchased goods and services and capital

goods (scope 3 categories 1 and 2)

contribute to 92% of upstream emissions.

Most of the remaining upstream emissions

are from outbound logistics (scope 3

category 4).

Read more in Sustainability statements –

Environmental – Energy efficiency and climate

action – Logistics

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	211
General disclosures	Environmental	Social	Governance
---	---	---	---

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

Our actions and resources

We rely on strong partnerships with our

suppliers and other upstream value chain

partners to jointly reduce our carbon

footprint and achieve our goal of GHG

neutrality in our supply chain by 2030.

We seek to engage with value chain partners

who share our values and are dedicated to

maintaining environmental standards.

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.

Upskilling our supplier account teams in carbon

literacy

In 2024, we held knowledge sessions –

informing and training our internal teams on

GHG, the difference between scope 1, 2 and

3 emissions, what we request from our

suppliers and how they can help – and

created a training program for the Supplier

Audit team. We also included the GHG

capability maturity assessment questions in

our supplier performance management

system, enabling our Supplier Audit team to

audit suppliers on their capability and

maturity.

Re-affirming supplier commitments to ESG

We asked suppliers to sign our letter of

commitment (LOC) – to commit and

collaborate with us to achieve our ESG

ambitions. By signing the LOC, suppliers

agree to comply with a number of measures:

to continue adhering to the latest version of

the RBA Code of Conduct; to measure and

share their CO2e emission data with

ecosystem partners; to set ambitious targets

to reduce or compensate CO2e emissions;

and to collaborate with ASML and

ecosystem partners to remanufacture used

system parts, tools, packaging and other

materials to maximize reuse. For the

expected emission reduction of this action,

we refer to our Climate Transition Plan.

In 2024, our top 80% suppliers participated

in (executive) review meetings and some of

them signed the LOC, committing to reduce

or offset part of their scope 1, 2 and 3

emissions by 2030. This would currently lead

to a 9% reduction of our purchased goods &

services emissions by 2030. We engaged all

other suppliers through our bi-monthly

online one-to-many forums, where on

average 250 supplier representatives

participate.

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 within the industry, increase

transparency and collaboration, and

increase global access to renewable

electricity.

Read more about the SCC in Sustainability

statements – Environmental – Energy efficiency and

climate action – Product use

The number of FTEs working for the SS&P

ESG sustainability program increased from

two to five in 2024. We expect this number

to stay stable in 2025. The total estimated

cost of €0.5 million relating to FTEs is

included within the Consolidated financial

statements under Selling, general and

administrative costs.

First step toward integrating carbon

footprint in our product generation

process

To support the optimization of the design of

our products, we analyzed the results of our

first CO2e footprint estimate for one system

in 2024. We are currently working on

converting our new carbon insights into

actionable items.

Looking ahead

In the coming years, we will focus on the

following activities to reduce emissions in

our supply chain:

•Actively engaging with the top 80% of our

suppliers and asking them to commit to

reducing their carbon footprint by 2030, by

improving energy efficiency in their

production processes, using renewable

energy and (as a last resort) offsetting

•Collaborating with suppliers to improve

their data quality on their CO2e emissions

with the ambition to collect emission data

from our top 100 suppliers

•Introducing sustainability performance

assessment as part of decision-making for

new product introductions

•Further expanding our training curriculum

to both our internal teams and suppliers to

help better understand and calculate

scope 3 emissions

•Following on from our first CO2e footprint

estimate pilot in 2024, planning to build

internal capabilities to perform life cycle

assessments (LCAs) on our products,

which will help us better understand which

materials cause higher emissions in our

supply chain – in turn helping us discover

more collaboration and reduction

opportunities.

As long as we rely on spend-based

emissions data, our calculated CO2e

emissions will increase/decrease in line with

our spend. We are collaborating with our

suppliers to improve data quality based on

actual input from suppliers, to improve their

carbon footprint and switch to renewable

energy.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	212
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Logistics

Our scope

For logistics, in scope are scope 3 GHG

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 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 – as well as the emissions caused

by the use of our warehouses. Logistics

covers scope 3 category 4.

Read more on our scope 3 calculation methodology

in Sustainability statements – Environmental –

Energy efficiency and climate action – Additional

disclosures – Methodology on metrics

Why it matters: Impacts, risks and<br><br>opportunities
For logistics, we have identified the<br><br>following:
Impacts:
	Energy use and GHG emissions from<br><br>purchased goods, services and<br><br>logistics emissions (scope 3)
Read more in Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Purchased goods and services
Risks and opportunities:
Read more about climate-related risks and<br><br>opportunities in Strategic report – Performance<br><br>and risk – Risk and Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Climate resilience analysis			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Scope 3 emissions related to upstream<br><br>transportation and distribution	kt	322	GHG neutrality	2030	Work to be done  n

We have one target for our scope 3

emissions related to logistics:

Become GHG neutral for scope 3

emissions related to logistics by 2030

The base year is 2019, with scope 3

emissions related to upstream transportation

and distribution of 213 kt CO2e. In 2024 we

began enhancing and substantiating the

emissions data we receive from our logistics

service providers per modality and product.

This allows 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 2024 were 322 kt, with 306 kt

coming from air transportation. This increase

from the baseline is due to growth of our

business, which requires more

transportation and distribution.

As outlined in the Purchased goods and

services section, our SS&P ESG

sustainability program supports our efforts

to reduce scope 3 emissions by actively

engaging and collaborating with suppliers.

Thanks to this engagement, we have

identified a number of logistics-related

initiatives that will reduce our GHG

emissions. In addition, specifically for

logistics, we can also achieve significant

emission reductions by rethinking preferred

modes of transportation. We track our

performance through progress performance

meetings with senior leadership and cross-

functional table meetings in which progress

is reported toward our targets.

Our actions and resources

We are collaborating with our logistics

suppliers to improve data quality.

In addition, we are investigating options to

move toward more sustainable modes of

transportation – for example, from air to

ocean freight – and to buy sustainable

aviation fuel (SAF) where ocean freight

is not possible.

Rethinking shipping routes

In 2024, we made progress with efforts to

avoid shipping all products centrally from

Veldhoven in the Netherlands to our global

customers, along with initiatives aimed at

sourcing more materials locally.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	213
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Logistics (continued)

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 pilot projects, we are working with

our freight teams and customers to drive this

transition.

With our cross-company, cooperative

approach to multiple ocean freight initiatives,

we realized several successes in 2024. In DUV,

reticle-stage packaging returned to Wilton

saved us about 11 kt CO2e. Tools and

packaging used for system shipments returned

to Veldhoven resulted in approximately 50 kt

CO2e savings. With regard to our metrology

and inspection systems, in 2024 we saved 0.15

kt for packaging returned to Linkou from

customers in Asia. We shipped a YieldStar 100

system in a temperature-controlled reefer

container from Taiwan to Veldhoven,

repurposed for the ASML Experience Center. In

2024, we also transported our first new DUV

and YieldStar systems to a customer by ship.

Finally, we kicked off our air-to-ocean transport

initiatives with freight cost reduction targets in

the business in 2025.

To support the move to more sustainable

transport and shipping modes, we have also

made an initial pilot investment in SAF – in

advance of future EU regulations

('ReFuelEU') which will require all airlines to

use them. This pilot will reduce our CO2e

emissions by 4.5 kt –

1.4%

of our total

freight emissions for

2024

.

We report and monitor our logistics-related

emissions via our CO2e dashboard and

discuss them quarterly in our ESG cross-

functional table meeting. We will engage

with both suppliers and customers on

options to change transportation modes

where possible from flight to ocean freight,

and will engage with our logistics partners to

buy more SAF for any transportation and

distribution still done by airplane.

Resources

To make it possible to move from air to

ocean freight for modules and systems, we

developed a special container to safely

transport modules overseas. Furthermore,

because of the increasing lead time due to

ocean returns of containers, we agreed with

our forwarders to increase the number of our

leased ocean containers by three, leading to

higher yearly capital expenditure of

€0.3 million to keep up the transportation

pace. 14 FTEs are dedicated to working on

the air-to-ocean project. In addition to the

ASML reefer containers, we have budgeted

€10 million of investments in a pool of

transport tools to support ocean-to-air

projects. This leads to an increased capex of

approximately €13 million in 2025. The total

estimated cost of €2.0 million relating to

FTEs is included within the Consolidated

financial statements under Personnel

expenses.

In 2025, to reach our ocean freight goals, we

expect our forwarders to increase the

number of our leased ocean containers to

30. We expect the number of FTEs to stay

stable.

For SAF usage 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 2024, this had led to ASML spending €0.4

million on SAF while €1.6 million worth of

SAF is used for our air freight. The opex

regarding leased containers and SAF is

included within the Consolidated financial

statements under Cost of sales.

We emphasize that the investments made

for more sustainable transportation modes

are also driven by (future) cost-effectiveness.

In 2025, we expect to invest €2.7 million in

new containers and expect the SAF spend

to increase in line with our business growth.

We have not assessed our SAF expenditure

under EU Taxonomy activity 6.19 Passenger

and freight air transport, because we do not

operate the air freight ourselves.

Read more in Sustainability statements –

Environmental – EU Taxonomy

Looking ahead

We are taking the first steps toward our

target of achieving GHG neutral scope 3

emissions for logistics by 2030.

Toward 2025, we expect a reduction of

CO2e emissions due to improved, more

accurate emissions data from our logistics

partners – as well as the reduction actions

we take in collaboration with them.

To further reduce the emissions from

logistics operations, in the coming years we

will be focusing on:

•Investigating the possibility of changing

transportation modes from flight to ocean

freight, including designing containers to

ensure safe transportation

•Purchasing SAF to reduce emissions from

air transportation and distribution

•Investigating the possibilities to reduce the

emissions of the warehouses we use

worldwide and the trucks used for the last

mile

We also expect to capitalize on the initiatives

that have already begun, although, as these

projects signal major change, we do not

expect the required scope 3 emissions

reduction will be realized immediately. Time

will be required for preparation and adoption.

To reach our GHG neutrality target by 2030,

we are amongst others dependent on

compensation of the residual emissions by

our logistics partners.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	214
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Business travel

Our scope

In scope are scope 3 emissions from

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.

Read more on our scope 3 calculation methodology

in Sustainability statements – Environmental –

Energy efficiency and climate action – Additional

disclosures – Methodology on metrics

Why it matters: Impacts, risks and<br><br>opportunities
For business travel, we have identified the<br><br>following:
Impacts:
	Energy use and GHG emissions from<br><br>business travel and commuting<br><br>(scope 3)
Risks and opportunities:
Read more about climate-related risks and<br><br>opportunities in Strategic report – Performance<br><br>and risk – Risk and Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action– Climate resilience analysis			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Scope 3 emissions related to business<br><br>travel	kt	65	GHG neutrality	2025	Work to be done  n

We have one target for our scope 3

emissions related to business travel:

Become GHG neutral for scope 3

emissions from business travel by 2025

In 2019 (our base year), our business travel

emissions were 97 kt CO2e. In 2024, taking

into account a new round of travel budget

reduction and sustainable aviation fuel (SAF)

purchases, our total emissions due to

business travel were 65 kt.

Our actions and resources

In 2024, we focused on reducing our

business-travel-related emissions by

applying a strict need-to-travel policy,

increasingly using train travel, electric

vehicles and SAF for air travel.

On a global scale, we:

•Reduced travel budgets per FTE

•Stimulated green travel modes by

encouraging employees to use train travel

for specific destinations such as Berlin and

London, and switching to the use of

electric vehicles in our rental car program

in Veldhoven

•Reduced residual emissions by purchasing

SAF for part of our global business

journeys by plane

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%.

1.In the Dutch ‘Anders Reizen’ 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 toward the

solution to climate change. The main, shared

ambition is to reduce CO2e emissions from business

travel by 50% in 2030 against the base year 2016.

Due to data availability, we use a (updated) base year

of 2019 rather than 2016.

With emissions of 1.48 t per FTE in 2024, we

met our commitment of reducing 50%

compared to our base year value of 3.88 t

per FTE in 2019. We aim to keep the

emissions per FTE below current levels, with

a continued emphasis on seeking additional

improvements.

Our employees are affected by these

actions, as they will be stimulated to travel in

more sustainable ways – considering travel

modes and limiting business travel if not

necessary. Society is positively affected by

these actions, as they will lower our CO2e

emissions and environmental impact.

To assess the effects of these actions, we

have cross-functional table meetings in

which we report progress against our

business travel and commuting targets.

In addition, a CO2e emissions dashboard is

available to indicate to what extent CO2e

emissions need to be reduced by SAF

purchases to meet our targets and – from

2025 – how much needs to be compensated

by carbon credits. We expect the voluntary

emission reduction certificates (VERs) to be

purchased for our business travel to be in

line with the emissions of the current year.

Resources

From all our initiatives in this key action,

we can only directly relate our financial

investments in SAF to the achievements

toward our GHG emission-reduction targets

for business travel.

In 2024, we contributed 3.6 million to the

SAF program of the business travel airline,

which is included within the Consolidated

financial statements under Selling, general

and administrative costs. In 2025, we expect

to spend a similar amount.

We have not assessed our SAF expenditure

under EU Taxonomy activity 6.19 Passenger

and freight air transport, because we do not

operate the transport ourselves.

Read more in Sustainability statements –

Environmental – EU Taxonomy

Looking ahead

We continue to have a strict ‘need-to-travel’

policy, and investigate opportunities to

reduce travel even more. In addition, we

plan to continue our existing strategy of

buying SAF to decrease our GHG emissions

from business travel. Where there are no

alternatives, as of 2025 we aim to offset our

residual emissions from employee

commuting and business travel by

purchasing VERs.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	215
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Employee commuting

Our scope

In scope are emissions from the

transportation of (fixed) employees between

their homes and their worksites.

Read more on our scope 3 calculation methodology

in Sustainability statements – Environmental –

Energy efficiency and climate action – Additional

disclosures – Methodology on metrics

Why it matters: Impacts, risks and<br><br>opportunities
For employee commuting, we have<br><br>identified the following:
Impacts:
	Energy use and GHG emissions from<br><br>business travel and commuting<br><br>(scope 3)
Risks and opportunities:
Read more about climate-related risks and<br><br>opportunities in Strategic report – Performance<br><br>and risk – Risk and Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Climate resilience analysis			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Scope 3 emissions related to employee<br><br>commuting	kt	36	GHG neutrality	2025	Work to be done n

We have one target related to reducing our

emissions from employee commuting (scope

3 category 7):

Become GHG neutral for scope 3

emissions from employee commuting by

2025

We have reduced commuting emissions

(predominantly related to commuting by car)

from 42 kt CO2e in 2019 (our base year) to

36 kt CO2e in 2024, despite both the

business and number of employees growing.

We have been promoting a balanced

working-from-home policy and we

developed a mix of sustainable commuting

options for our employees and we are

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 have also conducted

a survey on travel modes among employees

of seven representative locations, to get a

better understanding of the actual transport

modes used to travel to our offices and

update our calculation methodology and

baseline value accordingly.

We plan to compensate residual emissions

from business travel and employee

commuting as of 2025 to meet our target.

Our actions and resources

Gaining more insight with our global

decarbonization project

To close the target gap for employees

globally, we are:

•Improving data quality and insights of

employee commuting emissions

worldwide

•Discussing the possibility of extending the

ambition of the Dutch Business

Sustainable Mobility Pledge to our other

locations worldwide

•Exploring additional reduction initiatives

worldwide

In 2024, we started an employee commuting

decarbonization project across seven

representative locations to better

understand commuting habits, reduce

emissions and promote greener commute

modes – not only in the Netherlands, but in

our operating regions worldwide. Input from

employees provided us with insights into

their preferences in low-carbon modes of

transport. These insights will likely lead to

targeted interventions to further reduce

commuting emissions in later years, so that

our employees can contribute to a

sustainable future while enjoying tailored

solutions that prioritize convenience and

environmental responsibility.

We report and monitor our commuting-

related emissions via our CO2e dashboard

and discuss them quarterly in our ESG

cross-functional table meetings.

Dutch Business Sustainable Mobility

Pledge

In the Netherlands, we signed the Dutch

Business Sustainable Mobility Pledge 2030,

which also applies for gross emission

reduction from commuting. We provided

national railway commuting cards to

employees to stimulate travel to the office by

public transport. In addition, we provided

sufficient vehicle 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 increased the cycling reward

from €0.21 to €0.35 per kilometer, and for

international colleagues not used to riding

a bike, we offered cycling lessons. With

emissions of 0.81 t per FTE in 2024, we

already met our 2030 commitment of

reducing 50% compared to our base year

value of 1.69 t per FTE in 2019.

Employees are affected by these actions, as

they will be stimulated to commute in more

sustainable ways. Society is affected by

these actions, as they will lower our CO2e

emissions and environmental impact, while

also releasing pressure on road

infrastructure and congestion.

At ASML, 2 FTEs are working full-time for

the commuting decarbonization project.

The total estimated cost of €0.3 million are

included within the Consolidated financial

statements under Selling, general and

administrative costs. In 2024, we expensed

€1.1 million for the lease of 1,000 campus e-

bikes, and we invested €1 million in EV

chargers. The investments are included in

the Consolidated financial statements under

'Property, plant and equipment'. We do not

expect significant emission reduction to

result from this action for 2025 because of

our expected growth in headcount.

Looking ahead

We aim to keep the emissions per FTE

below current levels, with a continued

emphasis on seeking additional

improvements. Based on the lessons

learned from the commuting decarbonization

project across seven representative

locations, we aim to set up targeted

interventions in both the Netherlands and

other operating countries to reduce our

emissions from commuting. Examples are

exploring opportunities to increase the

adoption of electric vehicles and organize for

related infrastructure. In order to achieve our

GHG neutrality ambition in 2025, where

there are no alternatives, we aim to offset

our residual emissions from employee

commuting by purchasing VERs, which we

expect to be in line with current-year

emissions.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	216
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Product use

Our scope

In scope are expected lifetime emissions

from the use of goods and services we sell:

EUV and DUV lithography systems and

metrology and inspection systems.

Our scope 3 emissions from the use of sold

products relate to scope 3 category 11.

Read more on our scope 3 calculation methodology

in Sustainability statements – Energy efficiency and

climate action – Additional disclosures –

Methodology on metrics

Why it matters: Impacts, risks and<br><br>opportunities
For product use, we have identified the<br><br>following:
Impacts:
	Energy use and GHG emissions from<br><br>product use (scope 3)
Risks and opportunities:
Read more about climate-related risks and<br><br>opportunities in Strategic report – Performance<br><br>and risk – Risk and Sustainability statements –<br><br>Environmental – Energy efficiency and climate<br><br>action – Climate resilience analysis

The largest portion of our (indirect) GHG

emissions arises during use of our systems

at customers’ factories. In order to reduce

those emissions, we aim to:

Targets and performance
Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Power consumption (NXE) (reduction in % of<br><br>baseline 2018 1.44 MW)	%	(9)%	(10)%	2025	On track ò
Energy use per wafer pass (NXE)	kWh	5.9	5.1	2025	Off track  p
Energy use per wafer pass (NXE) (reduction in<br><br>% of baseline 2018 12.8 kWh)	%	(54)%	(60)%

Achieve a 10% decrease in absolute

equivalent power consumption (MW) of

our 0.33 NA EUV (NXE) systems by 2025

In 2024, based on the latest measurement of

the TWINSCAN NXE:3800E, equivalent

power consumption was 1.31 MW – a

reduction of 9% versus the 2018 baseline

figure of 1.44 MW.

Compared to 2023, the absolute power

consumption increased, due to the increase

of power required to boost productivity from

160 wafers per hour in 2023 to 220 wafers

per hour in 2024 – the latter demonstrated in

our factory. The increase in energy

consumption is partly offset by reduction

innovations released in 2024, like RF sleep

mode.

We are advancing our product sustainability

roadmaps throughout our product lines,

aligning and synergizing ongoing projects

while ensuring they will be implemented

within envisioned timings. Given the current

absolute equivalent power consumption

trajectory, we expect to achieve our target of

10% reduction by 2025.

Our EUV product roadmap includes future

improvements for both existing (installed

base) and planned NXE lithography systems.

We are actively contributing to and driving

collaboration on sustainability within the

semiconductor industry. Our strong

involvement in driving adoption of high-

temperature process cooling water (HTPCW)

has contributed to making this an industry

standard for future semiconductor fabs.

Our factory also investigated HTPCW

compatibility with pre-vacuum suppliers,

leading to HTPCW compatibility of pre-

vacuum pumps for all major suppliers.

In 2024, our pre-vacuum suppliers adopted

HTPCW. When implemented by our

customers – for example from the

TWINSCAN NXE:4000 system onward,

which has a drive laser that is HTPCW-

compatible – this could save ~100 kW,

representing ~8% of total equivalent power

consumption per system.

Achieve a 60% decrease in equivalent

energy consumption (kWh/wafer) of our

0.33 NA EUV (NXE) systems by 2025

Based on the latest measurement of the

TWINSCAN NXE:3800E, energy use per

wafer pass was 5.9 kWh/wafer – versus our

2025 target of 5.1 kWh/wafer – showing an

improvement from the last measurement

taken in 2023 of 7.7 kWh/wafer. For the

NXE:3800E, the total power consumption

increased slightly with 0.08 MW to 1.31 MW

compared to the NXE:3600D in 2023 even

while productivity increased from 160 to 220

wafers per hour. This results in the decrease

of energy per wafer pass from 7.7 to 5.9

kWh. This is a reduction of 54% against our

target reduction of 60% against our 2018

baseline of 12.8 kWh/wafer.

While we have made significant progress,

shifts in the EUV product roadmap scope

impacted our trajectory. The 2025 target of

60% decrease in energy use per wafer pass

will not be fully achieved within the intended

time frame. The technical groundwork we

have already laid gives us confidence that

we are well positioned to achieve this target

by 2027.

Our challenge to reduce the emissions

from the use of sold products

In 2024, total emissions from the use of sold

products were 6,569 kt CO2e, of which EUV

accounted for 2,811 kt CO2e, DUV for 3,501

kt CO2e, and metrology and inspection

systems for 256 kt CO2e.

Scope 3 emissions from product use

Scope 3 CO2e emissions (in kt) as a result of product

use by our customers for each of our product

categories

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	217
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Product use (continued)

Between 2019 and 2024, the total emissions

from the use of sold products have

increased from 4,374 kt CO2e to 6,569 kt

CO2e, primarily due to the annual increase in

sales volumes and partly offset by our

methodology update: in previous years we

estimated the emissions caused by products

used by our customers by using general

location-based emissions factors. Based on

publicly available data from the Carbon

Disclosure Project (CDP), we have been able

to calculate actual emission factors from our

five largest customers. This update in

methodology resulted in a decrease of 18%

(1,600 kt). The baseline values are updated

accordingly.

We see that the energy used per wafer pass

for EUV has decreased between 2020 and

2024 – our machines in general are

becoming more energy efficient per output

measure, confirming that we are working on

the right actions towards our energy

efficiency targets.

Our actions and resources

As demand for enhanced chip functionality

grows, the complexity and energy

consumption of the overall microchip

patterning process – including that of our

products – is increasing. When we design

new systems, we increasingly focus on

reducing energy consumption and cost while

increasing performance and availability. Our

energy reduction plans are an integrated

part of the product and technology

roadmaps we have in place for our total

product portfolio.

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 have also set internal targets for

reducing the emissions of our DUV

machines – measuring and monitoring the

energy use per exposed wafer in kWh and

the absolute (equivalent) power consumption

in kW compared to baseline values, so we

can track the effectiveness of our policies

and actions. The metrics on DUV immersion

and DUV dry are included in the metrics

table of this section. We have internal

roadmaps on the energy use per exposed

wafer pass for our DUV machines, which are

closely monitored by all relevant teams.

In addition, we have started to better assess

the energy efficiency of metrology and

inspection systems. We’re working with

peers and partners to accelerate efforts to

reduce GHG emissions, share knowledge

and technology, and stimulate the adoption

of renewable energy worldwide toward

reaching our ambition to achieve GHG

neutrality in 2040.

Continuously improving

our product roadmaps

We continue working on energy efficiency

improvements for our (future) products,

which requires long lead times and takes

multiple years to achieve. Energy-saving

roadmaps have been developed for all

product categories by our design and

engineering teams – and, during 2024, 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 and keep track of progress

during quarterly cross-functional table

meetings and 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 energy,

utilities and materials used.

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 to

reduce our product use emissions.

Progressing our EUV product roadmaps

We are implementing energy efficiency

improvements in our EUV NXE product

development process according to our

roadmap, which includes plans for turning

the CO2 drive laser off when it is not needed

during production, and making changes in

the application of low- and high-temperature

cooling water and the reduction of hydrogen

consumption.

We have been progressing our long-term

roadmap. In 2024, we introduced the first

sleep mode deliverable, called RF Sleep

Mode, which has been tested by customers

– confirming ASML's own measurement of

~400kW instant saving in system power

consumption when the system is in sleep

mode. Such a feature can be back ported to

the existing installed base, which we started

to roll out in the later stages of 2024.

We shipped our first TWINSCAN NXE:3800

system in 2024, providing continuous energy

savings.

Progressing our DUV product roadmaps

In 2024, we significantly increased customer

engagement – in both the advanced and

mature market segments – with the aim of

developing joint roadmaps toward GHG

neutrality. Although it will not directly lower

our scope 3 emissions, 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. This roadmap further enables

our customers’ GHG reduction ambitions.

We introduced clear governance with regard

to Sustainability Product Use in Portfolio and

Product Management, to accelerate on the

GHG emission reduction targets.

For DUV, we have set up an energy

reduction roadmap in 2024 for both new

systems and the installed base. Metrics will

be absolute power use reduction, energy

consumption per wafer pass and carbon

footprint. This roadmap includes software-

and hardware-related upgrades, which

directly contribute to our customers'

ambitions in energy reduction. We expect to

release the first immersion system upgrade

on energy efficiency to the market in 2026.

Computational lithography and metrology

and inspection

For our metrology and inspection systems,

we continue to explore possible energy-

saving initiatives.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	218
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Product use (continued)

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.

With the inclusion of the Circular Economy

objective under the EU Taxonomy

Regulation as of 2024, 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.

Looking ahead

We will continue to work on the energy

efficiency of our systems and other product

families.

For our EUV systems, we plan to deliver

LSM (Turbo Pumps) Sleep Mode, which is

part of our overarching Sleep Mode product

family (TWINSCAN NXE:3800). This feature

will enable further energy reduction toward

our 5.1 kWh/wafer target. As part of an

overall semiconductor industry initiative,

several customers confirmed the

implementation of HTPCW in future fabs

(moving from ~16–18°C toward higher

temperatures, up to 32°C), catering for the

next-generation TWINSCAN NXE:4000 –

which is envisioned to lower the power

consumption by ~100 kW.

For DUV, we actively engage with our

customers on our product roadmaps for

both ASML's and our customers’ GHG

neutrality ambitions. We will also expand

engagement with our customers on our DUV

roadmaps in the coming years to jointly plan

and act to meet our ambitions.

Semiconductor Climate Consortium (SCC)
We are a founding member of the SCC. Established in November 2022, the SCC aims to<br><br>address the challenges of climate change and speed up the industry’s efforts to reduce<br><br>GHG emissions throughout the value chain. The consortium’s members are committed to<br><br>working toward the following pillars and objectives:<br><br>•Transparency – Publicly report progress and scope 1, 2 and 3 emissions annually<br><br>•Ambition – Set near- and long-term decarbonization targets with the aim of reaching<br><br>GHG neutrality by 2040<br><br>•Collaboration – Align on common approaches, technology innovations and<br><br>communication channels to continuously reduce GHG emissions<br><br>The SCC is ultimately responsible for monitoring and reviewing progress toward these<br><br>ambitions.<br><br>In 2023, the SCC published an in-depth analysis of the semiconductor value chain’s<br><br>carbon footprint and priority-ranked carbon emission sources for the industry. This acts as<br><br>the baseline for value chain emissions.<br><br>We are one of the leading industry forces addressing climate change and speeding up<br><br>efforts to reduce GHG emissions throughout the entire value chain. We are co-leading the<br><br>BAR (Baselining, Ambition-Setting and Roadmapping) consortium working group and are<br><br>actively participating in other working groups by sharing data and information and<br><br>facilitating sessions.		Customers, ICT and society
---
While we measure and aim to reduce the<br><br>impacts of our operations, supply chain<br><br>and product use, ASML’s climate impacts<br><br>extend far beyond these areas to include<br><br>the benefits and risks that our technology<br><br>brings to society. The technology<br><br>pioneered by our R&D teams and partners<br><br>sits at the heart of global digitalization and<br><br>has the potential to transform how we all<br><br>live and work. We enable our customers<br><br>to innovate the semiconductor<br><br>technologies that can help humanity<br><br>manage its challenges and seize<br><br>opportunities by facilitating sustainable<br><br>living and e-mobility, accessible<br><br>healthcare, food security and the<br><br>transition to renewable energy. On the<br><br>other hand, we acknowledge the effects<br><br>of digital technologies that increase<br><br>energy demand, such as artificial<br><br>intelligence (AI), internet of things (IoT),<br><br>blockchain and cryptocurrency mining.<br><br>In collaboration with the industry, we aim<br><br>to have a better understanding of the<br><br>GHG emissions caused by the use of our<br><br>customers’ products. We do this, for<br><br>example, via the SCC, where we actively<br><br>engage with our customers on climate-<br><br>related matters. We don't measure<br><br>emissions downstream beyond our<br><br>customers and have no targets on these,<br><br>because this is outside the scope of our<br><br>GHG reporting boundary.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	219
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Metrics table

		Retrospective			Milestones and target years
Topic	Description	Unit	Base year<br><br>2019	2024	Target year<br><br>2025	Target year<br><br>2030	Target year<br><br>2040
Scope 1 GHG emissions	Gross scope 1 GHG emissions	ktCO2e	22.4	23.5
	Scope 1 GHG emissions from regulated emissions trading schemes	%		N/A
Scope 2 GHG emissions	Gross location-based scope 2 GHG emissions	ktCO2e	145.0	228.2
	Gross market-based scope 2 GHG emissions	ktCO2e	37.8	9.3
	Subtotal of gross scope 1 and market-based scope 2 GHG emissions	ktCO2e	60.2	32.8	45.0	15.0	6.0
Significant scope 3 GHG emissions	Total gross indirect (scope 3) GHG emissions	ktCO2e	7,578.0	12,038.8	15,700.0	19,500.0	2,300.0
	1 Purchased goods and services	ktCO2e	2,545.8	4,414.6
	2 Capital goods	ktCO2e	294.9	617.6
	3 Fuel and energy-related activities (not included in scope 1 or scope 2)	ktCO2e	10.3	13.4
	4 Upstream transportation and distribution	ktCO2e	213.1	321.9
	5 Waste generated in operations	ktCO2e	0.8	1.6
	6 Business traveling	ktCO2e	96.7	65.1
	7 Employee commuting	ktCO2e	42.2	35.6
	11 Use of sold products	ktCO2e	4374.1	6,568.8
	12 End-of-life treatment of sold products	ktCO2e	0.1	0.2
	Scope 3 GHG emissions calculated using primary data	%		2.5%
Total GHG emissions	Total GHG emissions (location-based)	ktCO2e		12,290.5
	Total GHG emissions (market-based)	ktCO2e		12,071.6

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	220
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Metrics table (continued)

Topic	Description	Unit	2024
Energy consumption	(1) Fuel consumption from coal and coal products	MWh	0
	(2) Fuel consumption from crude oil and petroleum products	MWh	690
	(3) Fuel consumption from natural gas	MWh	102,815
	(4) Fuel consumption from other fossil sources	MWh	0
	(5) Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources	MWh	17,517
	(6) Total fossil energy consumption (calculated as the sum of lines 1–5)	MWh	121,022
	Share of fossil sources in total energy consumption	%	20.8%
	(7) Consumption from nuclear sources	MWh	3,094
	Share of consumption from nuclear sources in total energy consumption	%	0.5%
	(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biological origin, biogas,<br><br>renewable hydrogen, etc.)	MWh	0
	(9) Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources	MWh	457,368
	(10) The consumption of self-generated non-fuel renewable energy	MWh	760
	(11) Total renewable energy consumption (calculated as the sum of lines 8–10)	MWh	458,128
	Share of renewable sources in total energy consumption	%	78.7%
	Total energy consumption (calculated as the sum of lines 6, 7 and 11)	MWh	582,244		Topic	Description	Unit	2024
---	---	---	---
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		Topic	Description	Unit	2024
---	---	---	---
GHG intensity (total GHG emissions<br><br>from scope 1, 2 and 3)<br><br>per net revenue1	Total GHG emissions (location-based) per net revenue	(tCOeq/<br><br>(€m revenue)	435
	Total GHG emissions (market-based) per net revenue	(tCOeq/<br><br>(€m revenue)	427

1.Net revenue derived from Financial statements – Consolidated financial statements – Consolidated statements of operations – Total net sales

Topic	Description	Unit	2024
Energy attribute certificates	Guarantees of Origin (GOs)	MWh	313,250
	Renewable energy certificates (RECs)	MWh	110,501
	International renewable energy certificates (I-RECs)	MWh	3,786
	Taiwan renewable energy certificates (T-RECs)	MWh	20,463
	Korea renewable energy certificates (K-RECs)	MWh	8,000
	Total energy attribute certificates	MWh	456,000

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	221
General disclosures	Environmental	Social	Governance
---	---	---	---

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
Year of energy measurement	2020	2020	2022	2022	2023
Power consumption (in MW)	0.07	0.13	0.07	0.13	0.07
ATP throughput (in wph)	209	277	260	330	250
Energy use per wafer pass (in kWh)	0.34	0.47	0.27	0.38	0.30
Platform	YieldStar				HMI
System type	YS375F	YS380	YS385	YS500	eScan1100	eP5XLE	eP6
Year of energy measurement	2019	2020	2023	2024	2023	2024	2024
Power consumption (in MW)	0.01	0.01	0.01	0.01	0.06	0.02	0.01
ATP throughput (in wph)	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Energy use per wafer pass (in kWh)	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Platform	EUV<br><br>30 mJ/cm2 dose
System type	NXE:3400B	NXE:3400C	NXE:3600D	NXE:3600D	NXE:3800E
Year of energy measurement	2018	2020	2021	2023	2024
Power consumption (in MW)	1.44	1.31	1.32	1.23	1.31
ATP throughput (in wph)	112	136	160	160	220
Energy use per wafer pass (in kWh)	12.8	9.6	8.3	7.7	5.9

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	222
General disclosures	Environmental	Social	Governance
---	---	---	---

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 emission reduction

targets. Net emission reduction targets may

include carbon offsets/carbon credits – these

targets align with our ambitions to become GHG

neutral by 2025, 2030 and 2040 for different

emission categories. Gross emission reduction

targets do not include carbon offsets/carbon

credits and provide insight into emission

reductions achieved by reducing energy usage

and switching to renewables.

In addition, we make a distinction between absolute

targets for our scope 1 and 2 emissions and intensity

targets for our scope 3 emissions. Absolute

emission-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 line with guidance

from SBTi and ESRS, ASML has set absolute

targets for its scope 1 and 2 emissions and intensity

targets per €m gross profit for scope 3 emissions.

Lastly, we have 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 included in

the target, we use the market-based method.

The baseline value for this target is the gross scope

1 and 2 emissions of 60 kt in the base year 2019.

As of 2024, we report on all buildings owned or

leased by ASML. The baseline value has been

updated accordingly. We consider the 2019 base

year to be most representative, as for the years

after, the energy consumption of our offices is

impacted by the COVID-19 pandemic.

Become GHG neutral for scope 3 emissions from

business travel (category 6) and employee commuting

(category 7) by 2025

This target is measured in kt CO2e. The baseline

value for the business travel target is the gross

scope 3 category 6 emissions of 97 kt in the base

year 2019. The baseline value for the commuting

target is the gross scope 3 category 7 emissions

of 42 kt in the base year 2019.

We consider the 2019 base year to be most

representative, as for the years after, the business

travel and commuting emissions are heavily

impacted by the COVID-19 pandemic.

For the employee commuting target, in the 2019

base year we only modeled emissions from

employee commuting in detail for the 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 have

obtained more accurate data for some of these

other locations and the granularity of this data will

be further extended to all our locations worldwide

in the coming years to improve our methodology.

This may lead to updating our baseline value

accordingly in the future.

Become GHG neutral for scope 3 emissions related to

purchased goods and services including capital goods

(categories 1 & 2) and logistics (category 4) by 2030

This target is measured in kt of CO2e. The

baseline value for the purchased goods and

services target is the gross scope 3 category 1

and 2 emissions of 2,841 kt in the base year

2019. The baseline for the logistics target is the

gross scope 3 category 4 emissions of 213 kt in

the base year 2019.

We consider the 2019 base year to be most

representative, as for the years after, our

operations are impacted by the COVID-19

pandemic. The 2019 base year is only

representative to a certain extent, as an 'external

factor' is our continuing growth, making absolute

reductions in gross emissions difficult. However,

we report the values and our efforts to achieve

scope 3 emission reductions to minimize the

required amount of offsetting toward 2030. In

2024, we started a project to request CO2e

emissions data directly from our suppliers – which

will lead to a more accurate calculation of our

CO2e emissions related to purchased goods and

services (including capital goods) in the future.

For logistics, as of 2024, our emissions are based

on data directly received from our logistics partners.

Become GHG neutral for all scope 3 emissions (all

categories) by 2040

This target is measured in megatonnes (Mt) CO2e.

The baseline value for this target is the gross

scope 3 emissions of 7.6 Mt in the base year 2019.

We consider the 2019 base year to be most

representative, as for the years after, our

operations are impacted by the COVID-19

pandemic. The base year is representative, as the

emissions per unit of gross profit can be

considered 'normalized for growth'.

This target covers both the upstream and

downstream parts of the value chain, following

the definitions according to the GHG Protocol.

E1-4 Gross emission reduction targets

Reduce gross scope 1 and 2 emissions by 25.2% by

2025 as compared to the base year 2019 (SBTi near-

term target)

This target is measured in kt CO2e. The baseline

value for this target is the gross scope 1 and 2

emissions of 60 kt in the base year 2019. The

target translates into an absolute target value of

45 kt.

As a specific pathway for the ICT sector does not

yet exist, this target has been set by SBTi using

the 'other industries' pathway. We are included in

the SBTi’s externally published list. While

analyzing feasibility, we have taken into account

our expected future growth toward 2025 and

beyond in terms of required manufacturing and

office space.

Reduce gross scope 1 and 2 emissions by 75% by 2030

as compared to the base year 2019

This target is measured in kt CO2e. The baseline

value for this target is the gross scope 1 and 2

emissions of 60 kt in the base year 2019. The

target translates into an absolute target value of

15 kt.

This target has been set by taking the SBTi 'other

industries' pathway into consideration, choosing

an even more ambitious pathway. This target has

been set based on an internal feasibility

assessment, taking into account the 2026–2030

energy savings master plan that is currently under

development.

Reduce gross scope 1 and 2 emissions by 90% by 2040

as compared to the base year 2019

This target is measured in kt of CO2e. The

baseline value for this target is the gross scope 1

and 2 emissions of 60 kt in the base year 2019.

The target translates into an absolute target of 6

kt.

This target has been set by SBTi using the 'other

industries' pathway.

Reduce gross 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 kt CO2e per €m gross profit. The

target equals 0.93 kt/€m gross profit in 2025.

In order to achieve our intensity reduction target

by 2025, we aim for CO2e emissions below

15.7 Mt by 2025.

It covers both the upstream and downstream

parts of the value chain, following the definitions

according to the GHG, and exclusively pertains to

scope 3 emissions – which typically constitute

around 99% of our total value chain emissions.

The baseline value in 2019 was 7.6 Mt CO2e, with

a value of 1.44 kt/€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 used.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	223
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Additional disclosures (continued)

Using 2019 as a base year is only partially

representative, as our continuing growth serves

as an 'external factor' that complicates efforts to

achieve absolute reductions in gross emissions.

The same applies to any other recent base year,

yet we transparently report the values and our

efforts to achieve real (gross) reductions by

improving energy efficiency of our products –

minimizing the required amount of offsetting

toward 2040.

This ambition 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

This target is measured as scope 3 emissions

intensity in kilotonnes CO2e per €m gross profit.

In order to achieve our intensity reduction target

by 2030, we aim for CO2e emissions below 19.5

Mt by 2030.

The baseline value in 2019 was 7.6 Mt CO2e, with

a value of 1.44 kt/€m gross profit. The absolute

target was derived from scope 3 emissions

intensity reduction according to the SBTi pathway

(7% year-on-year reduction), combined with

guidance for our gross profit in 2030 based on

2024 Investor Day information. We use the mid-

scenario of the gross profit outlook to balance the

assumptions used.

Reduce scope 3 GHG emissions by 97% per €m gross

profit by 2040 from a 2019 base year

This target is measured as scope 3 emissions

intensity in kt per €m gross profit. In order to

achieve our intensity reduction target by 2040 we

aim for CO2e emissions below 2.3 Mt.

The baseline value in 2019 was 7.6 Mt CO2e, with

a value of 1.44 kt/€m gross profit. The target was

derived from scope 3 emissions intensity

reduction pathway according to the SBTi.

Sub-topic-specific targets

Achieve energy savings of 100 TJ from energy-saving

projects (including onsite renewable electricity

generation) in our own operations worldwide by 2025

This target is measured as cumulated TJ savings

as of the base year 2021. Every five years, a new

energy savings master plan is created - the

current target is related to the 2021–2025 plan.

Savings are accounted for after completion of the

individual energy saving projects and cumulated.

Therefore, they are not comparable between

years.

Purchase 100% renewable electricity for our own

operations worldwide by 2025

This target is measured as the percentage of

renewable electricity purchased over our total

electricity consumption.

This target 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 toward

GHG neutrality by 2030

This target is calculated as the percentage of our

suppliers (based on CO2e emissions) who signed

the LOC or made a public statement to reduce

their CO2e footprint toward GHG neutrality by

2030. Our top 80% suppliers are those who,

according to spend-based emission calculations,

together account for 80% of our total supplier

emissions. Progress is monitored as of 2024,

when the program started. We have a target set

for 2026 of 75% commitment of our top 80%

suppliers (based on the 2023 CO2e emissions).

Achieve a 10% decrease in absolute (total equivalent)

power consumption of our 0.33 NA EUV 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. Due to capacity constraints of our SEMI

S23-equipped cleanroom cabin in 2024, the

energy consumption of the NXE system could not

be measured in all respects in accordance with

the SEMI S23 standard. We have tested all the

energy consumption elements using two different

NXE systems and two different measurement

cabins. The data is combined to calculate the

total energy consumption. Electricity usage is

68% of the total energy consumption and

measured directly on NXE:3800 E200

configuration. For the remaining elements (32%),

measurements from NXE:3800 E100 configuration

are extrapolated to NXE:3800 E200 configuration

using conservative error margins. The

measurement is verified by system engineering

and approved by the head of EUV NXE.

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.

Achieve a 60% decrease in equivalent energy

consumption of our 0.33 NA EUV NXE systems by 2025

This target is calculated as percentage reduction

of the energy use in kWh per wafer pass. The

2018 baseline value is 12.8 kWh. The power

consumption is measured as outlined in the

previous target.

Methodology on metrics

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 locations and office

locations, data from the energy supplier is used in

the calculation. For leased office locations where

energy supplier data is not available, energy

consumption is estimated based on the square

meters leased and multiplied by our country

average energy consumption (kWh/m2). The unit

in which the energy consumed is expressed is

then 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 the International

Energy Agency (IEA) and Dutch Emissions

Authority (NEa) location-based emission factors.

The sector in which we operate is considered a

high climate impact sector based on NACE code

29.99 and 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

GHG reporting standards

•For scope 1 and 2 emissions reporting, we use

the ESRS and considered the principles,

requirements and guidance provided by the

GHG Protocol Corporate Standard.

a.Scope 1 is defined as direct emissions

occurring from sources we own or control.

b.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, we use the ESRS and

considered the principles, requirements and

guidance provided by the GHG Protocol

Corporate Accounting and Reporting Standard

and the supplement Corporate Value Chain

(Scope 3) Accounting and Reporting Standard.

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. Location-based emission

factors are based on information from the

national, sub-national and grid level. 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 they are available. For a

few locations where supplier emission rates are

not available, we use location-based emission

factors to calculate market-based emissions as a

conservative approach.

•Scope 1 and 2 emissions are expressed in kt.

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

CO2 process gas from immersion systems. The

natural gas part is calculated by multiplying the

specific consumption by local conversion

factors (x kg CO2e per m3 of natural gas).

•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. Baseline values are updated

accordingly.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	224
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Additional disclosures (continued)

•Emissions from the company’s owned and

leased transportation are reported in scope 1

(fuel combustion and hybrid cars) and scope 2

(electric vehicles).

•GHG emissions not within our operational

control are accounted for in scope 3 emissions.

•We report GHG emissions in kilotonnes of

carbon dioxide equivalents (kilotonnes of

CO2e).

Calculation methodology

•Emissions factors are used to convert an

activity (such as purchased electricity in

kilowatt-hours) to GHG emissions (kilotonnes of

CO2e). We use suitable and consistent emission

factors from the IEA and IPCC where

applicable.

•Emissions factors are used during the

calculation of the location-based method for

scope 2 emissions and will be used in

accordance with the following level of priority:

1. National emission factors

2. National production emission factors – for

example, to represent the mix used to

produce electricity in scope 2 emissions.

We use the regional 2023 US Environmental

Protection Agency eGRID emission factors

for our US sites, which is part of the IEA

Emission Factor database.

•For market-based reporting, priority is given to

supplier emission factors in accordance with

GHG Protocol Scope 2 Guidance (GOs, RECs,

I-RECs, T-RECs and K-RECs.

•The quantification methodologies are in

accordance with best practice as followed by

the GHG Reporting Protocol, with additional

technical guidance from the US EPA Climate

Leaders Inventory Guidance and the Climate

Registry General Reporting Protocol 2.0.

•We conduct a regular review of appropriate

emission factors to ensure the most up-to-date

are used.

•Global Warming Potentials (GWPs) for our

inventory will be identified from the IPCC Sixth

Assessment Report (AR6) using 100-year

values.

•Gases included in calculation: We capture CO2e

(including process CO2) for scope 1 and only

CO2e for scope 2 emissions.

•No biogenic emissions are reported in these

categories.

•For fuel combustion and hybrid lease cars

included in scope 1, the emissions are

calculated based on average mileage and

emission factors from the European

Environment Agency.

ASML’s scope 2 emissions

We use both the location-based and market-

based methods. Our overall electricity

consumption, reported applying the market-

based method, uses the GHG Protocol hierarchy

of emission factor assignment:

1. Applying contractual instruments

2. Supplier-specific emission factors were

provided by vendors

3. Residual mixes for markets where available

4. Using regional or national grid factors for the

balance of the portfolio

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: onsite generation

and voluntary purchases of renewable energy. For

onsite generation (such as solar), renewable

energy is metered separately and is included in

our total consumption. This amount of

consumption is considered to have zero scope 1

and scope 2 emissions. Voluntary purchases

include the purchase of bundled and unbundled

renewable energy credits (GOs, RECs, I-RECs

and TRECs), participation in utility green power

programs and renewable energy contracted

through energy providers.

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 nine are material within our

value chain – as described in the table following.

The CO2e emissions of each category are

calculated by multiplying the corresponding

emission factor (for example x kg CO2e per kWh

or euro spend) by either the energy consumption

or the specific activity.

Scope 3 GHG emissions (in metric tonnes of

CO2e) 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. The selection of the

emission factors is based on the method selected

for calculating following the recommendations of

the GHG Protocol guidance by scope 3 category.

Biogenic emissions are not applicable for ASML.

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. This system was recertified

for ISO 14001 (the standard for EMSs) for three

years in 2023 and structured in accordance with

ISO 45001 (the standard for occupational health

and safety management systems) requirements.

Scope 3 data is reported on a quarterly basis with

a quarter delay (for example, Q1 data is reported

at the end of Q2 due to the extended timeline in

data collection). This allows us to forecast CO2e

with high accuracy based on historical

information. For the full year, the emissions

reported are the actual emissions of Q1–3 and

estimated emissions of Q4.

Updates in scope 3 methodology

We annually assess if we can improve our

methodology for calculating our GHG emissions.

In 2024, we implemented an updated

methodology for calculating GHG emissions

related to employee commuting and product use

and we report on all locations. Baseline values are

updated accordingly.

In previous years we estimated that employee

commuting outside the Netherlands always took

place by car. By conducting a survey on travel

modes among employees of seven representative

locations, we were able to get a better

understanding of the actual transport modes used

to travel to our offices. This update in

methodology results in a decrease of 21% (9 kt)

The baseline values are updated accordingly.

The methodology update for product use (scope

3 category 11) emissions is covering our largest

customers (based on revenue) and product

categories XT and NXT. In previous years we

estimated the emissions caused by products

used by our customers by using general location-

based emissions factors. Based on publicly

available data from the Carbon Disclosure Project

(CDP), we have been able to calculate actual

emission factors from our five largest customers.

This update in methodology resulted in a

decrease of 18% (1,600 kt). The baseline values

are updated accordingly.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	225
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Additional disclosures (continued)

Category	Rationale	Methodology description	Reporting boundaries
Category 1 – Purchased<br><br>goods and services	Material to ASML. Multiple modules,<br><br>parts and services are purchased to<br><br>produce.	We use the spend-based method to estimate emissions for purchased goods and services. We collect data on the economic<br><br>value of goods and services purchased each quarter and then multiply them by the relevant secondary (for example industry<br><br>average) emission factors (for example average emissions per monetary value of goods).<br><br>In order to identify the relevant secondary emission factors, we use the industry codes declared on the purchase order. These<br><br>industry codes are linked to the emission factors via the Standard Industry Classification (SIC) codes used in the emission factors<br><br>of DEFRA version 2011. These emission factors are updated on a yearly basis using the average inflation from the Bank of<br><br>England.	All upstream (cradle-to-gate)<br><br>emissions of purchased goods and<br><br>services.
Category 2 –<br><br>Capital goods	Material to ASML. Multiple physical<br><br>assets are purchased in order to<br><br>produce.	We apply the spend-based method to estimate the emissions of our purchased capital goods. We collect data on the economic<br><br>value of capital goods and multiply them by relevant secondary (for example industry average) emission factors (for example<br><br>average emissions per monetary value of goods).<br><br>Capital goods have been defined following our financial accounting principles, and are not double counted in category 1.<br><br>The industry codes are linked to the emission factors via the Standard Industry Classification (SIC) codes used in the emission<br><br>factors of DEFRA version 2011. These emission factors are updated on a yearly basis using the average inflation from the Bank of<br><br>England.	All upstream (cradle-to-gate)<br><br>emissions of purchased capital<br><br>goods.
Category 3 –<br><br>Fuel- and energy-related<br><br>activities	Material to ASML. Fuels and energy<br><br>are purchased to operate.	Using the average-data method, we estimate emissions by using secondary emission factors. In this category we take into<br><br>account:<br><br>• Upstream emissions of purchased fuel<br><br>• Upstream emissions of purchased electricity<br><br>• Transmission and distribution losses<br><br>The IEA Life Cycle Upstream Emission Factors (2023), DEFRA (2024) and the National Renewable Energy Laboratory Life Cycle<br><br>Greenhouse Gas Emissions from Electricity Generation Update (2021) emission factor databases are used.	All upstream (cradle-to-gate)<br><br>emissions of purchased fuels and<br><br>electricity (from raw material<br><br>extraction up to the point of, but<br><br>excluding, combustion).
Category 4 – Upstream<br><br>transportation and<br><br>distribution	Material to ASML. Transportation<br><br>and distribution services are<br><br>purchased to operate.	We include all third-party transportation and distribution services purchased. This includes inbound, outbound and third-party<br><br>transportation and distribution between a company’s own facilities.<br><br>Around 90% of the emissions are reported by the forwarders (Tier 1 logistic suppliers). We directly receive the emissions report<br><br>from our major logistics suppliers. To calculate the emissions, the suppliers use EcotransitIT, where emissions are estimated<br><br>using the distance-based method. The report includes: air transport, road transport, marine transport and storage of purchased<br><br>products in warehouses and distribution centers. For each shipment the factors considered are based on transportation type (e.g.<br><br>airplane type) and route. We have not included the multiplier effect of air travel on radiative forcing.<br><br>The remaining emissions are estimated by taking the average ASML freight emissions.	Emissions of transportation and<br><br>distribution providers that occur<br><br>during use of vehicles and facilities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	226
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Additional disclosures (continued)

Category	Rationale	Methodology description	Reporting boundaries
Category 5 –<br><br>Waste generated in<br><br>operations	Material to ASML. Waste is<br><br>generated as part of our operations.	Using the waste-type-specific method, we use emission factors per waste type and treatment method.<br><br>We differentiate the following treatment activities for each waste type:<br><br>• Landfill<br><br>• Incineration<br><br>• Recycling<br><br>Waste types are reported as part of our Circular Economy metrics. Waste treatment type is provided by the waste haulers<br><br>contracted. The emission factors from Ecoinvent v.3.11 and DEFRA (2024) are used.	Emissions that occur during the<br><br>disposal or treatment of our waste at<br><br>suppliers.
Category 6 –<br><br>Business travel	Material to ASML. Business travel is<br><br>conducted for sales, customer<br><br>support purposes and operation<br><br>activities.	Air travel: gross emissions are estimated by using two calculation methods. Around 50% of our flights’ emissions are reported to<br><br>us directly from our main travel supplier. The rest is estimated using the distance-based method, which involves determining the<br><br>distance and travel class of the flight and then applying the appropriate emission factor (Well-To-Wheel) considering direct<br><br>climate change effects only, therefore we have not included the multiplier effect of air travel on radiative forcing.<br><br>Hotel stay: We take hotel nights stayed and apply emission factors for the average energy use per hotel night in different<br><br>countries.<br><br>Car rental: We use the distance-based method. We receive the number of rental days from the rental car company and assume<br><br>an average distance (100 km/day) and multiply this by the corresponding emission factor (distance-based).<br><br>Taxi and public transportation: We apply the spend-based method, which involves determining the spend on transport and<br><br>applying secondary (spend-based) emission factors.<br><br>The DEFRA emission database (2024) is used for air travel, hotel and car. Public transport and taxi spend-based emission factors<br><br>come from the DEFRA version 2011. This emission factors are updated on a yearly basis using the average inflation from the<br><br>Bank of England.	Emissions of transportation carriers<br><br>that occur during use of any<br><br>transport mode used.<br><br>Emissions caused by the stay at<br><br>hotels during business travels.
Category 7 – Employee<br><br>commuting	Material to ASML. Our employees<br><br>commute to our offices and<br><br>manufacturing locations.	We use the distance-based method, which involves collecting data on:<br><br>•Average amount of employees present at the office based on badge swipe numbers<br><br>•Mode of transport: We differentiate between seven transport modes including bike, car, carpooling, motorcycle, public<br><br>transport, scooter and shuttle bus<br><br>•Fuel: Depending on the transport mode, we differentiate in electric, diesel, petrol and hybrid.<br><br>We report at a country level (Netherlands, Taiwan, South Korea, China, Germany and the United States) and include smaller<br><br>locations as 'others'.<br><br>The total emissions are obtained by withdrawing the emissions from leased cars calculated in scope 1 and 2.<br><br>The emissions factors are obtained from CO2emissiefactoren.nl, Milieucentraal, DEFRA (2024) and the IEA database. In case the<br><br>emission factor is not found, we use the IEA database to extrapolate the emission factor using cross multiplication (only<br><br>applicable for electric vehicles).	Emissions that occur during use of<br><br>vehicles or other transport modes<br><br>when commuting.
Category 8 –<br><br>Upstream leased assets	No leased assets are operated<br><br>outside what is reported in scope 1<br><br>and 2.	N/A	N/A

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	227
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Additional disclosures (continued)

Category	Rationale	Methodology description	Reporting boundaries
Category 9 – Downstream<br><br>transportation and<br><br>distribution	Category 4 (upstream) already<br><br>includes all inbound and outbound<br><br>logistic emissions.	N/A	N/A
Category 10 – Processing of<br><br>sold products	Our products do not require<br><br>intermediate processing.	N/A	N/A
Category 11 – Use of sold<br><br>products	Material to ASML. Our products<br><br>consume large amounts of energy to<br><br>operate.	We estimate the direct use-phase emissions by measuring the energy use of our products and calculating the GHGs emitted<br><br>during use. We apply a lifetime of 20 years for each system.<br><br>We estimate the annual energy consumption of each product based on the common production and idle time percentages,<br><br>obtained by customer survey data and verified and evaluated every two years by our development and engineering department.<br><br>The figure obtained is then multiplied by a lifetime of 20 years. Lastly, we differentiate the products sold to our top five customers<br><br>(based on 2022 revenue). For those we multiply the energy consumption by the customer emission factor (obtained from CDP) to<br><br>obtain the total emissions. This emission factor is general per customer and does not differentiate between countries. For the<br><br>products sold to other customers, we apply country-based emission factors from the IEA (2024) database to convert energy<br><br>consumption into emissions.<br><br>Some of our products also consume CO2 during their use; this amount consumed is calculated over the lifetime of 20 years and<br><br>added to obtain the total emissions.	The direct use-phase emissions of<br><br>sold products over their expected<br><br>lifetime at our customers' sites.
Category 12 – End-of-life<br><br>treatment of sold products	Material to ASML. End-of-life<br><br>products would require treatment<br><br>after they are no longer in service.	We apply the waste-type-specific method, on the basis of a high-level estimation of the material composition of our products.<br><br>We differentiate between metal and non-metal components and estimate the mass fraction for each system on a family level (for<br><br>example NXE, NXT and XT). We apply emission factors for specific waste types and waste treatment methods.<br><br>The Ecoinvent v.3.11 (cutoff) database is used.	Emissions that occur during the end-<br><br>of-life treatment of sold products.
Category 13 – Downstream<br><br>leased assets	Assets are not leased to other<br><br>entities.	N/A	N/A
Category 14 – Franchises	ASML does not operate franchises.	N/A	N/A
Category 15 – Investments	ASML does not have investments as<br><br>referred to in the GHG Protocol. All<br><br>emissions from subsidiaries are<br><br>included in ASML’s GHG emissions.<br><br>Emissions from associates that are<br><br>part of ASML's value chain are<br><br>included in the respective scope 3<br><br>category.	N/A	N/A

We only have primary data from suppliers for categories 4 and 6. To calculate the percentage, we divided 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	228
General disclosures	Environmental	Social	Governance
---	---	---	---

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. During 2024, ASML also

experienced the effects of climate change related

to heavy rainfall events in both the US and the

Netherlands. Fortunately, our operations could

continue without critical delays and there was no

material financial impact. It is expected that if

society continues to emit GHGs at current rates,

global warming will speed up and 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 are resilient to the effects of

these scenarios based on the mitigation

measures in place. The conclusions from this

resilience analysis 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 were

integrated into our enterprise risk management

(ERM) process.

Why it matters: Impacts, risks and<br><br>opportunities
There are several climate-related risks<br><br>identified in our double materiality assessment<br><br>(DMA):
	Physical climate change risks to ASML
	Physical climate change risks to our<br><br>customers
	Technology risk due to transition to low-<br><br>carbon technologies (transition risk)
	Climate-related regulation and carbon taxes<br><br>(transition risk)
	Damage to our brand and reputation<br><br>(transition risk)
There is also an opportunity:
	Increased market demand for low-carbon<br><br>technologies

Assessing climate-related impacts, risks and

opportunities

In 2024, we updated our scenario analysis, which

serves as the basis for our resilience analysis and

considers both a 1.5°C and a 4°C scenario. Our

climate scenario analysis provided no indications

requiring changes in our asset valuations in the

Consolidated financial statements.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	229
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate resilience analysis (continued)

Selected climate scenarios for resilience analysis

	Transition risk: 1.5°C scenario	Physical risk: 4.0°C scenario
Scenario	International Energy Agency (IEA) Net Zero Emissions by 2050 Scenario	Intergovernmental Panel on Climate Change (IPCC) RCP 8.5 Scenario
Description	A 1.5°C scenario would only occur if society managed swift decarbonization in the coming decades,<br><br>resulting in more pronounced transition risks. This scenario looks at the following risk categories: policy<br><br>and legal, market and economic, technology and reputation. The impact on both our assets and<br><br>business activities is taken into consideration.	A 4°C scenario would occur if society fails to decarbonize, resulting in more pronounced physical risks.<br><br>The data model covers the relevant hazard categories for ASML and aligns with the guidance provided<br><br>by ESRS (temperature-related, wind-related, water-related and solid mass-related hazards). The<br><br>likelihood, magnitude and duration of the hazards are taken into consideration within this data model.
Time horizon	For the 1.5°C scenario, this assessment considers a time horizon until 2030 (medium term). This is in<br><br>line with ASML’s overall strategy and risk time horizon.	In our assessment, we consider the climate change effects as projected in 2030 (medium term) and<br><br>2050 (long term). The 2050 time horizon is included for this scenario since physical risks could pose a<br><br>greater threat in the long term if the world fails to decarbonize.
Policy levers	•Carbon pricing will play a significant role<br><br>•Strong investment/subsidy schemes for technology innovation in energy efficiency and renewables	•Includes a world with little to no policy interventions<br><br>•High climate adaptation focus
Market levers	•Primary energy demand falls by 17% between 2019 and 2030<br><br>•By 2035, overall net zero emissions electricity in advanced economies<br><br>•By 2050, almost 90% of electricity generation comes from renewable sources, with wind and solar<br><br>photovoltaic (PV) together accounting for almost 70%	•Electricity: share of final energy demand increase by the year 2100 to 30%<br><br>•Fossil fuels continue to dominate the primary energy portfolio over the entire time horizon
Technology levers	•Global rate of energy efficiency improvements (~4% a year by 2030)<br><br>•Development of low-carbon solutions in all sectors<br><br>•Includes reliance on carbon capture solutions (up to 7.6 Gt CO2 by 2050)	•Wind and solar PV remain to play limited role in energy production<br><br>•Scarcity in fossil fuels during the second part of the century will result in a ‘last-minute’ shift to highly<br><br>expensive alternative technologies and nuclear or hydro-energy
Climatic effects	•Effects of physical climate risk limited, but visible	•Global mean sea level rise of 0.84 m by 2100<br><br>•Frequency and intensity of extreme weather events largely increased with increasing CO2<br><br>concentrations
Opportunities	In both scenarios we have looked at opportunities for ASML, in the following categories: Resource efficiency / Energy source / Products and services / Markets / Resilience

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	230
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate resilience analysis (continued)

The two considered scenarios were sourced from

the IEA and the IPCC, which are widely regarded

as credible sources for selecting climate change

scenarios 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 a 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.

In terms of scope, our resilience analysis

considers climate-related transition and physical

risks and opportunities and their possible effects

on our operations and value chain (including

upstream and downstream). Specifically, six key

suppliers (located within the EU), and three key

customers are in scope. We made this selection

based on spend (suppliers) and sales volume

(customers) averages over a three-year period.

No significant assets and/or business activities

were considered incompatible with a transition to

a climate-neutral economy.

The scoring methodology included in this analysis

is relative and aligned with our ERM process. The

methodology to assess the risks and

opportunities to ASML in both the 1.5°C scenario

(covers transition risks and opportunities) as well

as the 4°C scenario (covers physical risks and

opportunities) is aligned with our ERM system.

In our risk management system we assess

identified risks 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

these are classified as high, medium or low risks

and opportunities. Risk mitigation measures are

taken into consideration when assessing the risks

therefore representing net risk.

To assess the risks and opportunities for ASML

caused by suppliers and customers, we used

publicly available data from these suppliers and

customers (e.g. annual reports, CDP disclosures

and TCFD reports). The available information and

outcomes provided in those public disclosures

are used for our analysis. Other sources used in

our assessment are climate data models

including geospatial coordinates (e.g. Swiss RE

and Munich Re) for determining the exposure of

our assets and business activities to physical

risks, review of regulatory developments and

internal multi-stakeholder engagement.

We consider the high and medium risks and

opportunities material for ASML. Here follows an

overview of the risk and opportunity levels used.

Risk and opportunity levels

High risk: high financial impact on ASML’s<br><br>gross margin and/or market share	High opportunity: high financial impact on<br><br>ASML’s gross margin and/or market share
Medium risk: medium financial impact on<br><br>ASML’s gross margin and/or market share	Medium opportunity: medium financial<br><br>impact on ASML’s gross margin and/or<br><br>market share
Low risk: limited to no financial impact on<br><br>ASML’s gross margin and/or market share	Low opportunity: limited to no financial<br><br>impact on ASML’s gross margin and/or<br><br>market share

We use the following time horizons in our physical

and transition risk and opportunity assessments:

•Short term: one year

•Medium term: from two to five years (e.g.

strategy planning horizons)

•Long term: more than five years (e.g. lifetime

of assets)

This exercise allows for identification of the most

material risks and opportunities.

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 following. Per scenario and per

category we disclose the risk and opportunity

levels, where in the value chain the highest effects

occur, a description of the risk or opportunity, the

mitigating measures ASML or its value chain

partners have taken and the anticipated financial

effects that could occur in these scenarios.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	231
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate resilience analysis (continued)

		Risk level	Value chain	Risk description	Mitigating measures	Anticipated financial effects
Physical risks<br><br>4°C scenario<br><br>medium and<br><br>long term	Acute and<br><br>chronic<br><br>climate<br><br>change<br><br>effects		Customers<br><br>	The increased frequency and severity of climate<br><br>change effects will impact our key customers,<br><br>particularly in the long term (2050). Extreme weather<br><br>events are predicted to be more severe and the<br><br>manufacturing facilities of our key customers are<br><br>especially exposed to effects of water stress,<br><br>droughts, storms and typhoons. These events can<br><br>potentially disrupt the operations of key customers in<br><br>such an extreme scenario. These customers are<br><br>particularly sensitive to water stress and drought due<br><br>to the heavy reliance on water for the semiconductor<br><br>manufacturing processes.	Our customers are implementing mitigating measures<br><br>themselves, such as retrofitting of facilities to increase<br><br>water efficiency, conducting risk assessments and<br><br>engagement with their supply chain to mitigate<br><br>climate risks. Alongside this, we are working on<br><br>technical solutions to reduce the water needed for<br><br>cooling EUV machines to contribute to a lower<br><br>dependency on water.	Lost revenue<br><br>In a 4°C scenario our key customers could experience the<br><br>increased effects from water stress and drought which can<br><br>lead to increased operational and capital expenditures and<br><br>revenue loss. Consequently, the demand for our products<br><br>could decrease as customers lose financial power. Our<br><br>dependence on a concentrated number of customers could<br><br>have a material adverse effect on our revenue and financial<br><br>condition.<br><br>Increased capital expenditures<br><br>Our customers could demand more water-efficient machines,<br><br>which would require the redesign of our products. There will<br><br>be increased or prioritized R&D investments to be able to<br><br>adapt ASML’s systems to be more water efficient.
	Acute and<br><br>chronic<br><br>climate<br><br>change<br><br>effects		Own<br><br>operations<br><br>	The frequency and severity of climate change effects<br><br>increase, particularly after 2050. Tropical cyclones,<br><br>heat stress and floods caused by increased<br><br>precipitation are predicted to be more severe in<br><br>specific regions, potentially damaging and disrupting<br><br>our operations in those regions. Additionally, droughts<br><br>could result in the disruption of production due to<br><br>water-dependent processes.	We have several key measures in place to mitigate the<br><br>potential effects of physical risks, including but not<br><br>limited to robust building designs, fire suppression<br><br>systems in critical areas, stormwater control<br><br>mechanisms, water reserve controls, maintenance<br><br>management, power backup for safety/emergency<br><br>systems and business continuity strategies.	Lost revenue<br><br>Extreme weather events can disrupt production processes or<br><br>transportation, resulting in late deliveries. This can have a<br><br>material adverse effect on our revenue and financial condition.<br><br>Operational costs<br><br>Temperature increases can increase operational costs, due to<br><br>the necessity of additional air conditioning to ensure consistent<br><br>climate conditions for our production processes and the<br><br>productivity of the workforce. Also, it is likely that insurance<br><br>costs will increase due to increased frequency and severity of<br><br>extreme weather events in a 4°C scenario.<br><br>Increased capital expenditures<br><br>In some cases, more investments will be needed to make our<br><br>factories increasingly resistant to the effects of climate change,<br><br>including droughts, tropical cyclones, heat stress, precipitation<br><br>stress, floods and fire weather stress.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	232
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate resilience analysis (continued)

		Risk level	Value chain	Risk description	Mitigating measures	Anticipated financial effects
Transition<br><br>risks<br><br>1.5°C scenario<br><br>Medium term	Policy and<br><br>legal		Across<br><br>value chain<br><br>	The climate-related regulation landscape is expected<br><br>to change in many regions. This could lead to stricter<br><br>regulation on sectors such as energy, industry and<br><br>transportation, but also on the technology sector.<br><br>ESG reporting will also have to become more<br><br>extensive and carbon-pricing regulations can be<br><br>introduced. Climate regulation will have a strong effect<br><br>on the medium term (2030) because the world will<br><br>have to act soon to limit global warming. These<br><br>regulations may impact ASML directly in relation to its<br><br>own manufacturing processes or indirectly via the<br><br>cost of input materials through suppliers or customer<br><br>requirements for carbon efficiency.	We monitor climate-related regulations and policies to<br><br>understand the potential effect to our business and<br><br>stakeholders on a global level. We deploy our carbon<br><br>footprint strategy, with which we aim to achieve<br><br>greenhouse gas (GHG) neutrality for scope 1 and 2,<br><br>business travel and employee commuting by 2025, for<br><br>our supply chain emissions by 2030 and for product<br><br>use emissions by 2040. The objective of our supply<br><br>chain collaboration programs and our product energy<br><br>efficiency roadmaps is to reduce emissions from the<br><br>products we purchase, to reduce the carbon footprint<br><br>of our products, and to enable low-carbon technology<br><br>and products 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<br><br>scenario due to climate-related regulations and carbon taxes.<br><br>Increased operating costs<br><br>Increased operating costs due to a price on carbon in a 1.5°C<br><br>scenario.<br><br>Increased capital expenditures<br><br>In a 1.5°C scenario, there will be increased capital<br><br>expenditures, as investments are needed to make production<br><br>processes more energy efficient or to change the energy<br><br>source. This is most relevant for facilities in Taiwan and South<br><br>Korea, where the costs of moving to renewable energy are<br><br>already very high. Additionally, increased or prioritized R&D<br><br>investments will be needed to support our customers in<br><br>meeting their carbon-reduction requirements.
	Market and<br><br>economic		Suppliers<br><br>	The availability of some input materials is expected to<br><br>be impacted, since demand for these products will<br><br>become higher in a low-carbon economy (e.g. raw<br><br>materials used in our equipment like steel, aluminum<br><br>and rare earth elements). The increased demand and<br><br>decreased availability of such input materials and<br><br>required changes to production processes at our<br><br>suppliers could result in higher purchase prices for<br><br>ASML.	To mitigate the effects of higher-input material prices,<br><br>purchase agreements are signed with suppliers.<br><br>We have developed dedicated supply chain programs<br><br>to monitor the availability of raw materials and<br><br>economic development as well as a scarcity program<br><br>to monitor scarce commodities.	Increased capital expenditures<br><br>Both ASML and its suppliers need to increase R&D<br><br>investments to be able to adapt our systems to be more<br><br>energy efficient and reduce the carbon footprint of the supply<br><br>chain.<br><br>Increased operating costs<br><br>Increased operating costs due to the potential increase of raw<br><br>materials prices, caused by limited availability and changes in<br><br>supplier production processes.
	Technology		Across<br><br>value chain<br><br>	Investments in new technology are required to<br><br>mitigate carbon emissions, and these transition costs<br><br>could be very high. ASML is highly dependent on its<br><br>suppliers and customers to reach its climate<br><br>ambitions. Some of our manufacturing processes<br><br>require fossil-fueled technologies for which no<br><br>alternatives are industrialized yet (e.g. steel), while<br><br>there is currently a limited availability of renewable<br><br>energy in some regions where our products are<br><br>operated.	We develop our products and technology roadmaps<br><br>in close collaboration with suppliers and customers<br><br>and we actively work to reduce the energy<br><br>consumption of our products. We are gathering more<br><br>insights on material inflows to find solutions to reuse<br><br>materials and reduce the carbon footprint of materials<br><br>used in the production process. We expect that the<br><br>deployment of our Climate Transition Plan will support<br><br>our transition to achieve GHG neutrality for scope 1, 2<br><br>and 3 by 2040.	Increased capital expenditures<br><br>ASML and value chain partners need to increase R&D<br><br>investments to reduce the carbon emissions of our<br><br>lithography systems and applications.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	233
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate resilience analysis (continued)

		Risk level	Value chain	Risk description	Mitigating measures	Anticipated financial effects
Transition<br><br>risks<br><br>1.5°C<br><br>scenario<br><br>Medium term	Reputation		Own<br><br>operations<br><br>	There will be more scrutiny on the semiconductor<br><br>sector, as it consumes large volumes of energy and<br><br>water resources. Failure to decarbonize and mitigate<br><br>negative impacts on the environment can result in<br><br>brand and reputational risk for ASML. This could<br><br>negatively affect employee attraction and retention<br><br>and could result in a reduction in available capital<br><br>sources.	We have developed our ESG sustainability strategy to<br><br>mitigate our negative impacts and increase our<br><br>positive impacts on ESG-related topics. Part of this<br><br>strategy is our Climate Transition Plan which we<br><br>expect will help us to reduce our carbon emissions.<br><br>By continuously engaging with our relevant<br><br>stakeholders, we seek to ensure that our ESG<br><br>sustainability strategy covers all our material impacts,<br><br>risks and opportunities. The Climate Transition Plan,<br><br>its related strategic KPIs and its actions and progress<br><br>are monitored by the Board of Management (BoM).	Lost revenue<br><br>Reputational damage can lead to a decrease in demand from<br><br>customers for our products. Similarly, failure to manage<br><br>climate impact can negatively impact employee attraction and<br><br>retention and indirectly lead to revenue loss.<br><br>Increased capital and operational expenditures<br><br>Increased capital and operational expenditures as<br><br>investments are needed to execute our ESG sustainability<br><br>strategy.				Opportunity<br><br>level	Value chain	Opportunity description	Anticipated financial effects
---	---	---	---	---	---
1.5°C & 4°C<br><br>opportunities<br><br>Medium to<br><br>long term	Development<br><br>and/or<br><br>expansion of<br><br>(new)<br><br>products and<br><br>services		Own<br><br>operations<br><br>	The increased demand for low-carbon technologies will impact the demand for<br><br>semiconductors. When looking at the scenario of a low-carbon economy,<br><br>semiconductors play a multifaceted role in mitigating carbon emissions.<br><br>Semiconductors are needed for the generation and use of low-carbon energy sources<br><br>and are necessary for, among others, wind turbines, solar panels and electric vehicles.<br><br>Moreover, semiconductors are necessary in all smart technologies that help improve<br><br>energy efficiency, such as smart grids, while power semiconductors can be key in<br><br>reducing energy use. As demand for semiconductors may surge, the need for our<br><br>lithography systems is also highly likely to increase.	Increased revenue<br><br>As demand for semiconductors surges, the need for lithography systems will likely<br><br>increase. We will likely be able to serve this need if we continue to follow our vision of<br><br>producing microchips that are constantly becoming more energy efficient. Therefore,<br><br>the increase in demand for semiconductors will be highly likely to lead to increased<br><br>revenues.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	234
General disclosures	Environmental	Social	Governance
---	---	---	---

Energy efficiency and climate action: Climate resilience analysis (continued)

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

(as described in the table above) are covered by

risk mitigation measures.

To address the climate-related risks derived from

our scenario analysis, we have integrated the

risks into our existing ERM process.

Read more in Strategic report – Performance and

risk – Risk – 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

addressed in the medium term but also in the

long term. Several actions have been taken to

mitigate the potential effects of climate-related

risks. These actions 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 transition

risks and trying to anticipate their effects on its

reputation and financial performance. One key

initiative has been the establishment of climate-

related targets aimed at mitigating the potential

costs associated with climate policies and carbon

taxation. Specifically, we are committed to play

our part in limiting global warming to 1.5°C, and

have determined climate change ambitions to

drive action toward GHG neutrality:

•By 2025, we aim to become GHG neutral for

our own scope 1 and 2 emissions, business

travel and commuting

•By 2030, we aim to become GHG neutral in our

supply chain (including logistics)

•By 2040, we aim to become GHG neutral

across our entire value chain

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 provides a roadmap

with key actions to achieve the ambitions stated

above. This roadmap provides 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 aim to 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

next year, 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 will be conducted annually to

identify risks that are not yet known or not yet

considered material, and that could significantly

impact our business objectives, financial

condition, results, operations and reputation.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	235
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy

We aim to have zero waste from our operations to landfill and incineration by 2030

| Why it matters | | --- || ...for the planet | ...for ASML | | --- | --- | | The predominant linear model of the global<br><br>economy – in which products are<br><br>produced, used and then thrown away as<br><br>waste – is unsustainable. It adds immense<br><br>pressure to our planet’s limited resources,<br><br>increases GHG emissions and generates<br><br>waste and pollution.<br><br>A circular economy approach enables<br><br>sustainable economic growth by creating<br><br>business loops, ensuring efficient use of<br><br>resources and driving an innovative<br><br>business model. | By applying a circular economy strategy,<br><br>we aim to ensure our products and<br><br>services create and retain as much value as<br><br>possible for us, our customers, our<br><br>suppliers and other partners across our<br><br>value chain.<br><br>A successful transition toward a circular<br><br>economy means improved designs,<br><br>operational resilience, minimal<br><br>environmental impact and reduced costs. || The transition to a circular business<br><br>model is important: | | --- | | ...for our customers | | It contributes to their circular economy objectives,<br><br>systems and parts availability, while lowering their total<br><br>costs of ownership. | | ...for our employees | | It contributes to their goals to improve social and<br><br>environmental impacts. | | ...for our suppliers | | It contributes to business opportunities due to the<br><br>reuse of materials which contributes to avoiding the<br><br>use of new materials therefore reducing costs. | | ...for our shareholders | | It contributes to their objective to maximize long-term<br><br>shareholder value and minimize business costs while<br><br>improving sustainability performance. | | ...for society | | It contributes to societal objectives reducing waste,<br><br>costs, and environmental footprint. | | Read more about our double materiality process<br><br>and identified impacts, risks and opportunities for<br><br>this theme in Sustainability statements – General<br><br>disclosures – Impact, risk and opportunity<br><br>management || Our 2024 progress: | | | --- | --- | | 95% | 88% | | Systems sold in the past<br><br>30 years still active in<br><br>the field | Reuse rate of parts<br><br>returned from field<br><br>and factory<br><br>(2025 target: 90%) | | 12,118 t | 429 kg | | Total waste<br><br>from operations | Waste generated<br><br>per €m revenue | | (excl. construction) | (2025 target: 295 kg) | | 63% | | | Recycling rate | | | (excl. construction)<br><br>(2025 target: 65%) | |

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	236
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: How we're managing

Our objective
We want to transition from a linear to a circular<br><br>business model – something we believe is vital<br><br>for our future success and competitiveness.<br><br>The circular economy model aims to keep<br><br>resources in use for as long as possible,<br><br>minimizing the use of virgin materials and<br><br>eliminating waste by closing the loop to create<br><br>a more sustainable and resilient economy.<br><br>We contribute to this by maintaining, repairing,<br><br>upgrading, refurbishing, remanufacturing,<br><br>repurposing and/or recycling our systems,<br><br>parts, packaging, assets and non-product-<br><br>related (NPR) goods as we aim to minimize the<br><br>social and environmental impact of our<br><br>operations.
	Systems	Parts and tools including<br><br>packaging and transport tools
	We aim to maintain systems in<br><br>use for as long as economically<br><br>and environmentally possible,<br><br>focusing on service, upgrades<br><br>and refurbishment.	We aim to maximize the use of<br><br>materials by focusing on parts<br><br>and packaging availability, cost<br><br>reduction and reuse of already<br><br>available resources through<br><br>repair and test actions –<br><br>avoiding the need for new<br><br>materials for new parts.
	NPR waste	Real estate
	We aim to minimize our waste<br><br>and increase our recycling rate<br><br>by improving the quality of our<br><br>waste data, analyzing the waste<br><br>data and using insights from<br><br>waste data to define and<br><br>implement onsite initiatives.	We adopt green building<br><br>standards and use strict<br><br>certification methods, aiming to<br><br>ensure most of our new and<br><br>existing office and warehouse<br><br>buildings (owned buildings) are<br><br>as sustainable as possible.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	237
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: How we're managing (continued)

Our approach

A successful transition toward a circular economy

means improved designs, operational resilience,

minimal environmental impact and reduced

costs. Our approach applies to ASML worldwide.

Improved designs are achieved through

learning from failure cases and returns of used

parts. This leads to improved products,

solutions and processes. Our growth depends

on the availability of parts and access to

materials but, at the same time, we want to

lower our material inflow. Our ERM framework

addresses the risk of supply chain disruption

due to scarcity or unavailability of raw

materials and parts. Decoupling inflow from

growth and closing material loops will be key

for operational resilience – leading to lower

use of virgin materials and reduced emissions

through disposing locally and elimination of

waste ending in landfill and incineration. Cost

reduction can be achieved by optimizing the

number of purchased goods while avoiding

surplus and reusing resources to eliminate

waste.

We aim to limit our negative impacts on the

planet in close collaboration with our

customers and suppliers. Our ambition is to

have zero waste from operations to landfill

and incineration by 2030.

To achieve this ambition, we aim to:

•Minimize material inflows by avoiding the

use of virgin materials; source sustainably;

use renewable/recycled materials as much

as possible; and reuse, repair and refurbish

systems, parts, packaging and tools

•Minimize outflow by maximizing the

lifetime and productivity of our systems

and eliminating waste from operations to

landfill and incineration, while recycling

materials that can no longer be used

We have identified four material sub-topics

worldwide:

•Systems

•Parts and tools, including packaging and

transport tools

•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,<br><br>by category (non-hazardous and hazardous)<br><br>and by material type (such as plastics, paper,<br><br>wood and hazardous liquids). We include<br><br>data on the CO2e impact of processing our<br><br>waste in our scope 3 emissions. Within our<br><br>operations, we divide our waste into three<br><br>categories:<br><br>•Non-hazardous waste, such as packaging<br><br>material, waste from parts resulting from<br><br>upgrades or defects, and general waste.<br><br>This category also includes construction<br><br>waste from building activities, which tends<br><br>to fluctuate over the years.<br><br>•Hazardous waste, such as the chemicals<br><br>we use in our manufacturing processes.<br><br>This can include everything from lamps,<br><br>batteries and liquids to cleaning wipes<br><br>and filters. Most of our hazardous waste is<br><br>in the form of liquids, including acetone<br><br>and piranha acid.<br><br>•Radioactive waste originates from small<br><br>amounts of radioactive material in our<br><br>products.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	238
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: How we're managing (continued)

Levers for action

By applying a circular economy strategy,

we aim to ensure our products and

services retain and create as much value

as possible for us and our partners in the

ecosystem.

We aim to achieve our ambition across the

four material sub-topics via a strategy

based on the following four levers, which

we apply in collaboration with our

suppliers and customers:

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 phase

and use phase and at end of life (EoL).

We use a modular design – with the

system divided into modules, that allows

teams inside and outside ASML to work on

different components in parallel, speeding

up the development cycle.

Design of our systems, parts and tools is

done with disassembly in mind, making it

easier to repair and maintain them.

We focus on design along circular

economy principles such as: durability,

reusability, repairability, refurbishment,

remanufacturing and recycling. In addition,

we work on implementing commonality,

modularity, serviceability, compatibility

and standardization.

We design systems, parts, packaging, tools

and real estate to maximize their value and

reliability and prevent waste. We aim to

choose mono-material components and an

eco-design methodology, and 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 have absolute targets on the

minimization of primary raw materials and

the use of sustainable and renewable

resources yet. We strive to avoid excess and

obsolete inventories.

We are committed to making reliable

systems, minimizing the number of parts

that are dead on arrival. By rethinking

processes and implementing lean principles

in manufacturing and logistics, we aim to

improve delivery and thereby reduce waste.

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.

In addition, we refurbish systems. In a LEP

we replace parts or modules for which the

availability of spare parts can no longer be

guaranteed and to provide further lifetime

of the product.

Reuse resources

We aim to reuse resources as much as

possible across our value chain. We are

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 the location with the lowest environmental

impact. In real estate, we repair buildings,

assets and infrastructure. Redeployment

enables the reuse of parts, packaging, tools

and devices in a new life cycle with the same

functionality inside and outside ASML.

Recycle materials

We aim to prepare for reuse or recycling at

end of life. 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 waste

at EoL takes place locally – and we only

collaborate with waste contractors that are

certified according to local legislation. We

aim to include sustainability KPIs in

contracts to ensure contribution to our

circular economy targets.

We aim to achieve our ambition by

focusing on the following steps:

•Further embedding the circular economy

governance across the organization

•Improving our circular sourcing strategy

to ensure we minimize the inflow and as

such prevent waste

•Ensuring our designs take circularity

principles into account

•Continuing to maximize reuse

•Focusing on creating a strategy for

extending the lifetime and reuse of our

buildings and infrastructure

•Improving the data reliability of our

packaging and waste

•Identifying opportunities for closed-loop

collaborations with our suppliers and

waste haulers

•Investigating the impact of our waste

across our value chain (beyond our own

operations)

•Investigating the value of waste

Why it matters: Impacts, risks and<br><br>opportunities
For circular economy, we have<br><br>identified the following impacts across<br><br>our value chain that are downstream<br><br>beyond our customers:
Impacts:
	Use of our customers' products<br><br>enabling the transition to a circular<br><br>economy in various applications
	Use of our customers' products<br><br>hindering the transition to a circular<br><br>economy in various applications
The strategy for these impacts including<br><br>targets, actions and resources is in<br><br>development, and we will report on this<br><br>in the coming years.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	239
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Systems

Our scope

Systems 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 system and

process control software solutions.

Why it matters: Impacts, risks and<br><br>opportunities
For systems we have identified the<br><br>following:
Impacts:
	Resource inflows in the production<br><br>process
	Impact of our resource outflows at<br><br>customers’ sites
	Waste produced from our operations
Risks and opportunities:
	Disruption to the supply chain caused<br><br>by unavailability of materials and parts
	Loss of market share and dissatisfied<br><br>customers through not meeting agreed<br><br>circular economy standards
	Inability to meet changing customer<br><br>demands for more circular products
Read more in Strategic report – Performance and<br><br>risk – Risk			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
% of lithography systems sold in the past 30<br><br>years still active in the field	%	95%	N/A	N/A	N/A

We monitor the lifetime and productivity of

our systems via:

Percentage of the systems sold over the

past 30 years still active in the field by

2025

We actively monitor our systems sold over

the past 30 years that are still active in the

field. This includes our EUV, DUV and PAS

5500 systems. The monitoring takes place

based on shared interests with our

customers to extend the lifetime of our

systems as long as possible, due to their

high value.

In 2024 we have sold 38 refurbished

lithography systems (9.1% of the total

lithography systems sold in the year). To

date we have refurbished and resold over

500 lithography systems. By the end of

2024, 95% (2023: 95%) of all (refurbished)

systems sold in the past 30 years were still

active in the field.

Our actions and resources

We aim to maintain systems in use for as

long as economically and environmentally

possible, focusing on service, upgrades and

refurbishment. For this, we focus on

safeguarding our ability to support the

systems and creating products and options

to increase the value of the systems for our

customers. Our ability to continue to service

the systems is secured by investing in

service training and documentation, and by

resolving obsolescence issues with parts.

Enhancing systems’ performance and

lifetime

We are establishing customer contracts to

maintain systems in the market as long as

economically beneficial for both the customer

and ASML, maximizing their value. We develop

refresh packages to maintain a high

performance, PEPs and SNEPs to enhance

their running period and performance, and

additional options to allow systems to be

adapted to new customer requirements.

We provide our PAS customers with a

guaranteed service roadmap until at least

2035, and we provide specific guarantees

to each platform for our other systems –

meaning all the support and necessary

services and spare parts required to

maintain their systems are expected to be

available until at least the committed date,

subject to export control limitations.

Safeguarding service parts availability

We also refurbish systems across the

business – a multiyear 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 can decide to completely

redesign a part.

Extending product life through

refurbishment

We focus on refurbishing a number of

product families: PAS 5500 (with almost

1,800 systems at customer sites worldwide),

TWINSCAN XT 4 (2,000 systems) and, as of

2021, NXT:1950-1980 (1,000 systems). For

the approximately 200 TWINSCAN AT

systems still in operation, we focus on

measures to proactively manage their end of

life – 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 pro-

actively organize for the parts, people and

tooling needed to execute this successfully.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	240
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Systems (continued)

Our refurbishment program is mainly

involved in industrializing refurbishments

with existing hardware. This means making

sure the consumables, parts that show wear,

and any upgrades that we may need to do

have procedures and sequences available to

ensure low cycle time and cost.

Redesigning parts 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 –

and, for PAS and (N)XT systems, we use this

information to update our priorities for

redesign. We have identified and plan to

execute more than 100 redesign projects for

nearly 300 parts 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 thinking about 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 their usage throughout

their life cycles.

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. As a

result, it is not possible to fully distinguish

our resources only for circular objectives.

Our estimate is that approximately 20 FTEs

are working on extending the lifetime of our

systems. The associated costs are

approximately €2.8 million annually and

included in the Consolidated financial

statements in Selling, general and

administrative costs. We expect this number

to grow because of our business growth.

These FTEs are not solely attributable to the

circular objectives of ASML, such as

extending the lifetime of our systems, but

also contribute to our other strategic goals,

such as extending the productivity of our

systems.

Looking ahead

We are working on strengthening the circular

economy thinking in our installed base

strategy, and as such are developing new

targets to monitor progress on this strategy

going forward.

For DUV, we aim for XT Dry scanner energy

reduction and we actively engage with our

customers on this new roadmap to further

enable both ASML's and our customers’

GHG neutrality ambitions and maximize the

lifetime of our systems. We will expand the

engagement with our customers on our DUV

roadmaps in the coming years to jointly plan

and act to meet our circular ambitions.

For EUV, we will continue to leverage our

large and growing systems installed base to

provide high-value service and upgrades

over a lifetime of more than 20 years.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	241
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Parts and tools including packaging and transport tools

Our scope

In scope for our parts and tools – which from

this point on we will refer to as 'parts' – are

subsystems, modules, assemblies, parts,

tools and components used in our systems.

In scope for our packaging and transport

tools are materials used to protect,

safeguard and transport our systems and

parts across the value chain.

Why it matters: Impacts, risks and<br><br>opportunities
For parts and tools including packaging<br><br>and transport tools we have identified the<br><br>following:
Impacts:
	Resource inflows in the production<br><br>process
	Impact of our resource outflows at<br><br>customers’ sites
	Waste produced from our operations
Risks and opportunities:
	Disruption to the supply chain caused<br><br>by unavailability of materials and parts
	Loss of market share and dissatisfied<br><br>customers through not meeting agreed<br><br>circular economy standards
	Inability to meet changing customer<br><br>demands for more circular products
Read more in Strategic report – Performance and<br><br>risk – Risk			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Reuse rate of parts returned from field and<br><br>factory	%	88%	90%	2025	On track ò

In the context of reusing parts and tools, we

have defined one target. For packaging and

transport tools, we are assessing inclusion

of this in our targets in the near future.

Achieve a 90% reuse rate of parts

returned from the field and factory by

2025

Our overall target reuse rate of 90% means

a 95% successful return of our parts and

subsequently 95% successful

reconditioning. We established this target to

focus on the reuse of our parts and gain

better insights into our reuse processes.

While our external stakeholders were not

involved in setting this target, we collaborate

closely with our partners and suppliers to

improve our reuse rate. In 2024, our reuse

rate of parts was 88% – on target to achieve

our goal. The savings we generated from

reused parts amounted to €1,841 million,

and the value of scrapped parts was €237

million.

The return-to-recondition flow, the

recondition-to-good-stock flow, the reuse

rate and the inventory levels are monitored

and reported monthly to our reuse board.

Our actions and resources

Our actions to achieve our target are

centered on:

Repairing and reconditioning materials to

enable reuse

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 standardize these processes

and create a network-related solution to

enable high flexibility and reduce transport,

which also reduces our CO2e footprint.

These activities – which are under

development globally and connected to our

general enterprise resource planning (ERP)

system – support us in maintaining a parts

return rate of 95% and a recondition rate of

95%.

On an annual basis, the additional potential

savings related to these activities amount to

€1.5 billion worth of materials.

Localized repair centers

Currently, we have repair centers in Asia

(South Korea, Taiwan and China), the US

(Wilton, San Diego, Vancouver WA) and the

EU (Veldhoven), which work with local

suppliers and specialized repair partners to

create a local ecosystem. By enabling repair

and reuse activities and taking ownership of

repairs close to where materials are needed,

we are able to reduce logistics time, cost of

stocking parts and our environmental impact

(by reducing both scrap and GHG

emissions).

In 2024 we opened our new Reuse Work

Center in Newtown, Connecticut (US). With

this dedicated facility for reuse and repair

activities, our Wilton (US) factory greatly

increased its reuse capacity and efficiency.

The Newtown Reuse Work Center features

its own 2,500 ft2 cleanroom, including a

grade-four area for dismantling particularly

sensitive modules (such as YieldStar

sensors and EUV uniformity correction

modules), a warehouse and logistics

facilities. A dedicated team of production

engineers, technicians and logistics experts

drives disassembly, repairs and upgrades of

modules and will be taking many more parts

from the Wilton factory, including DUV

reticle stages, Z-mirrors, YieldStar sensors

and EUV uniformity correction modules.

Improving the effectiveness of the reuse

flow

In 2024 we began improving the data

availability of materials flow and registration

in our ERP system.

In our new system designs, we aim to

ensure design-for-reuse principles.

The related training and detailed

documentation have been tested and rolled

out in 2024 and will be continued in 2025.

To track the effectiveness of our reuse flow

actions, we constantly measure the return-

to-recondition flow, the recondition-to-good-

stock flow and the reuse rate, and we also

monitor the inventory levels of materials to

be reconditioned.

Circular supplier collaboration

We are collaborating with suppliers to

incentivize reuse over new purchases.

We have started transferring used parts

back to our suppliers to repair, refurbish

or harvest for reuse in their new buying

process, giving them more flexibility in

how they can reuse parts. In the prior year,

we investigated how to support a new

collaboration model with suppliers for

reusing materials, as well as how to adjust

our processes and systems to enable it.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	242
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Parts and tools including packaging and transport tools (continued)

Reuse of packaging and transport tools

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

transportation materials are reused.

We are improving the reuse of packaging,

lockings and plugs from the field and

factory, and implementing business rules,

KPIs, analytics and infrastructure to secure

reuse over new purchase.

In 2024, we continued to make progress in

reusing thousands of small auxiliary

materials, such as plugs, flanges, caps and

brackets. These are now 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, we reduced our factory waste

stream on packaging and transport tools

significantly, and we now seek reuse

opportunities outside our ASML network,

e.g. reuse of containers if this is not possible

internally.

Improving availability of materials<br><br>through reuse

With increased demand for all our<br><br>systems, it has become more challenging<br><br>to have the right materials in the right<br><br>place at the right time to build, upgrade or<br><br>repair our products.<br><br>One solution to improve availability of<br><br>materials is to reuse them from existing<br><br>systems that have been returned from the<br><br>field. In 2024, we introduced a systematic<br><br>approach to dismounting and reusing NXT<br><br>systems, with the ambition of using the<br><br>same process with other systems in the<br><br>future.<br><br>Through a scalable process, almost all<br><br>modules can be disassembled and fed<br><br>back into the supply chain as separate<br><br>parts. This approach provides greater<br><br>availability of materials, reduced cost and<br><br>lower lead times, particularly for lenses in<br><br>high demand. We have also completed a<br><br>pilot to include XT main bodies in this<br><br>process.

Resources

We have a dedicated Reuse & Repair

organization. While in the beginning cost

was the main purpose of reuse, other key

drivers today are to reduce waste in our

ambition to become a circular company,

increase output through parts availability,

overcome material shortages and improve

our designs by learning why parts fail. The

reuse-dedicated organization leases several

repair centers and reuse factories for end-

to-end reuse activities, from dismantling and

harvesting to reconditioning, (tin) cleaning

and returning materials for reuse to our

factories and field locations.

To run the reuse-dedicated organization,

operational expenditure was approximately

€28 million in 2024, included in the

Consolidated financial statements in Selling,

general and administrative costs. This

includes expenditure for around 200 FTEs at

year end. The future financial resources for

2025 are expected to slightly grow to

€32 million because of the expected growth

in FTEs and output.

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. The

associated costs are approximately

€9.8 million annually.

Resources allocated to the Reuse & Repair

organization are not solely attributable to our

circular objectives, but also contribute to

other strategic goals.

When conducting the EU Taxonomy

assessment, we assessed our contribution

to the transition to a circular economy by

checking on 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.

•More than 95% of our systems are still

active in the field and we have

longstanding relationships with our

customers. Each buyback, sellback or

takeback is an individual negotiation, and

therefore we cannot evidence standard

information to customers regarding end-

of-life options for our products.

Activity 5.1 is not aligned because we lack a

waste management plan that ensures that

the product’s 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

requires a waste plan that covers each of the

tens of thousands of parts in our systems.

We currently do not have this plan in place.

Read more in Sustainability statements –

Environmental – EU Taxonomy

Looking ahead

We will further invest in global reconditioning

capacity so it scales with our company

growth. In 2025, we plan to open a new

Reuse & Repair Center in Beijing (China),

marking another important step-up in reuse

manufacturing.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	243
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Non-product-related waste (hazardous and non-hazardous)

Our scope

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, IT. This

is relevant for all our locations.

Product-related (PR) waste consists of

systems and parts and tools including

packaging and transport tools.

Why it matters: Impacts, risks and<br><br>opportunities
For NPR waste (hazardous and non-<br><br>hazardous) we have identified the<br><br>following:
Impacts
	Waste produced from our operations		Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Total waste from operations (excl. construction)<br><br>normalized to revenue	kg/€m	429	295	2025	Work to be done n
Recycling rate (excl. construction)	%	63%	65%	2025	Work to be done n

While we are working toward developing a

specific NPR waste target, our waste

prevention strategy contributes to the

following targets:

Achieve 295 kg of waste from operations

(excluding construction) / €m revenue by

2025

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 waste).

Our waste intensity in 2024 (our baseline) is

429 kg per €m revenue. To achieve our

target of 295 kg per €m revenue, we need to

scale up our efforts to reduce our waste

streams. We measure our waste intensity to

gain insights in our waste streams, and we

set a target to maintain internal focus. No

external stakeholders were involved in the

target-setting process.

Achieve a 65% recycling rate of waste

from operations (excluding construction)

by 2025

In 2024, we generated 13,537 tonnes of PR

and NPR waste (including construction

waste). Our recycling rate was 63%,

compared to our target of 65%.

In 2023, we reported a 90% target rate for

2025. However, last year, insights showed

that waste companies reported recycling

rates using different definitions – and

aligning the definitions worldwide resulted

in a significant decrease in our recycle rate.

In 2024, we continued to improve the quality

of data, and we have started initiatives with

our waste companies to both increase our

recycling rate and better understand the

environmental impact of our waste.

The new insights revealed that achieving a

90% recycling rate by 2025 was not realistic.

Therefore, we adjusted our 2025 target to a

65% recycling rate of waste from operations

with our 2024 actuals as the baseline.

Our ambition of zero waste to landfill and

incineration by 2030 worldwide remains the

same, and we will work on increasing our

recycle rate year by year.

Our actions and resources

To reduce NPR and PR waste, our actions

focus on multiyear projects that first started

in 2023. In 2024, we:

•Started a project to improve the

completeness, representativeness and

accuracy of waste data worldwide.

•Investigated the recycling capabilities of

seven industrial sites with the aim of

improving our recycling rate. In 2025, we

will define actions based on the insights

gained from this study.

•Completed a detailed overview of the

waste streams for our five largest industrial

sites – Veldhoven, Wilton, San Diego,

Linkou and Tainan – with the goal of

identifying improvement projects.

In addition, we started the execution of the

following projects per region:

Veldhoven (the Netherlands):

•Investigation of improving waste

management at our main Veldhoven

campus to accommodate further growth

while supporting our zero-waste ambition.

•Implementation of better waste-

segregation facilities in the offices and

warehouses to improve our recycling rate.

•Implementation of reusable coffee cups,

resulting in a reduction of around 14.4

million disposable cups.

•Reduction of the use of wooden pallets,

which represent approximately 10% of

our packaging waste. To avoid incineration

of disposable wooden pallets, we made

agreements with one of our key pallet

suppliers to switch to reusable pallets.

In the first month in 2024, this resulted in

a saving of 2,000 kg. For 2025, we aim

to expand our agreements with other

suppliers and decrease wooden pallet

waste by 250,000 kg per year.

•Reduction of waste by making agreements

with suppliers to enable greater return to

manufacturers. This could save

approximately 400,000 kg of waste per

year.

•Agreement with our cleanroom suits

supplier to ensure full recycling of plastic

foil packaging.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	244
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Non-product-related waste (hazardous and non-hazardous) (continued)

Linkou and Tainan (Taiwan):

•Improvement of waste data quality by

ensuring waste is being measured by a

third party.

•Increase of wood waste recycling from

35% to approximately 80% for our Tainan

factory, and from 75% to 90% for our

Linkou factory, by changing waste hauler.

San Diego and Wilton (US):

•Implementation of reusable coffee cups,

resulting in a reduction of around 1.1

million disposable cups.

Resources

6 FTEs are working on our actions from our

waste master plan. These have an

associated annual cost of approximately

€0.8 million. The other actions executed

carry a cost of approximately €1.0 million.

All costs are included in the Consolidated

financial statements in Selling, general and

administrative costs. Depending on the

outcome of various pilots and supplier

collaborations, this amount could increase in

years to come.

Looking ahead

We will continue executing our waste

prevention strategy, and collaborating with

our suppliers, service providers and

employees to reduce waste and to improve

our recycling rate.

In 2025 we will continue our multiyear

projects to reduce our regional NPR and PR

waste.

Veldhoven (the Netherlands)

•We will implement the waste recycling

improvements identified in the Veldhoven

campus investigation.

•We will begin optimizing the gathering of

clean waste streams (in one of our

warehouses) to enable recycling by a

waste hauler.

Linkou and Tainan (Taiwan)

•We are aiming to provide improved waste

segregation facilities in our offices and

warehouses.

Wilton (US)

•We will further improve the separation of

plastics to increase the recycling rate.

•Together with one of our glass suppliers,

we will start a feasibility pilot to see if

certain glasses can be reused.

•We will start a filter cake study to assess

the recyclability of the solid mass

remaining on a filter.

•The amount of reusable packaging will be

increased.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	245
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Real estate

Our scope

Real estate (building renovation and

construction) refers to all ASML-owned and

leased buildings. In our owned real estate

portfolio management, we aim to have our

newly built and renovated buildings

(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.

Why it matters: Impacts, risks and<br><br>opportunities
For real estate, we have identified the<br><br>following:
Impacts:
	Waste produced from our operations		Targets and performance
---

There are currently no targets set on

construction waste. As we continue to

expand our facilities, we aim to maximize the

recycling of waste from our construction

activities.

In 2024, we generated 1,419 tonnes of

construction waste – 88% of which was

recycled.

Our actions and resources

We use guidelines to ensure most of our

self-owned new and existing office and

industrial buildings are as sustainable as

possible:

Adopting green building standards

In 2024, we created 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 waste. We will focus firstly on

our large industrial sites before scaling up

wherever possible to other sites. The Green

Building standards for industrial buildings

were approved in 2024 and we will use 2025

as a pilot year. The concept will be

embedded in our real estate processes, so

we can track desired outcomes. As of 2024,

for some construction projects we report the

waste of construction and demolition in our

environmental reporting system. On a

consolidated level, we monitor the results

and inform real estate staff about project

status.

Adopting these Green Building standards

will contribute to further improving our total

waste and recycling rates.

Gaining insights into waste streams

Because our green construction philosophy

considers the entire life cycle 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. In 2024, we worked on gaining

detailed insights for these 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 waste,

allowing us to define a realistic target for

construction and demolition waste in the

near future.

Actions based on the insights:

•We provided our contractors and waste

handlers with stricter circularity guidelines

for processing construction and demolition

waste.

•We created a guidance document for

project managers and contractors to

report construction and demolition waste

through a standardized report to

simultaneously simplify their work and

increase our insights.

•We expanded our environmental reporting

system to include construction and

demolition waste handled by contractors

worldwide.

Resources

As the resources related to our actions

regarding construction waste cannot be fully

distinguished from the Energy efficiency and

climate action activities we disclose them

combined 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.

The resources dedicated to the actions

described above originate from both our

energy master plan and our waste master

plan. These are quantified in the preceding

sections.

Read more in Sustainability statements –

Environmental – EU Taxonomy

Looking ahead

For construction waste, aided by the

increased insights into waste streams, we

aim to establish a recycling rate baseline,

setting a target to meet in 2026 in the

Netherlands, and in 2027 for our other

locations. We also aim to carry out a pilot in

the Netherlands, with circularity guidance for

new buildings by 2025.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	246
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Metrics table

Topic	Description	Unit	2024
Resource inflows	Biological materials used in manufacturing that are sustainably sourced	%	—%
	Biological materials used to manufacture products and services that are sustainably sourced	tonnes	800
	Products and technical and biological materials used	tonnes	—
	Secondary reused or recycled components, secondary intermediary products and secondary materials used in manufacturing (including packaging)	%	—%
	Secondary reused components, secondary intermediary products and secondary materials used to manufacture products and services (including packaging)	tonnes	10,963
	Secondary recycled components used to manufacture products and services (including packaging)	tonnes	—		Topic	Description	Unit	2024
---	---	---	---
Resource outflows	Recyclable content in products and their packaging	%	80.2%
	Recyclable content in products and their packaging	tonnes	—		Topic	Description	Unit	2024
---	---	---	---
Waste generated by waste type	Non-hazardous waste	tonnes	12,513
	Hazardous waste	tonnes	1,024
	Radioactive waste	tonnes	0.1
	Total amount of waste generated by waste type	tonnes	13,537
Topic	Description	Unit	2024
Waste diverted from disposal by<br><br>recovery operation type – Non-<br><br>hazardous waste	Preparation for reuse	tonnes	129
	Recycling	tonnes	8,087
	Other recovery operations	tonnes	0
	Amount of waste diverted from disposal by recovery operation type – Non-hazardous waste	tonnes	8,216
Topic	Description	Unit	2024
Waste diverted from disposal by<br><br>recovery operation type – Hazardous<br><br>waste	Preparation for reuse	tonnes	37
	Recycling	tonnes	757
	Other recovery operations	tonnes	0
	Amount of waste diverted from disposal by recovery operation type – Hazardous waste	tonnes	794

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	247
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Metrics table (continued)

Topic	Description	Unit	2024
Waste diverted from disposal by<br><br>recovery operation type –<br><br>Radioactive	Preparation for reuse	tonnes	0.0
	Recycling	tonnes	0.0
	Other recovery operations	tonnes	0.0
	Amount of waste diverted from disposal by recovery operation type – Radioactive	tonnes	0.0
Topic	Description	Unit	2024
Waste directed to disposal by<br><br>treatment type – Non-hazardous<br><br>waste	Incineration	tonnes	3,730
	Landfill	tonnes	567
	Other disposal operations	tonnes	0
	Amount of waste directed to disposal by treatment type – Non-hazardous waste	tonnes	4,297
Topic	Description	Unit	2024
Waste directed to disposal by<br><br>treatment type – Hazardous waste	Incineration	tonnes	212
	Landfill	tonnes	18
	Other disposal operations	tonnes	0
	Amount of waste directed to disposal by treatment type – Hazardous waste	tonnes	230
Topic	Description	Unit	2024
Amount of waste directed to<br><br>disposal by treatment type –<br><br>Radioactive	Incineration	tonnes	0.0
	Landfill	tonnes	0.1
	Other disposal operations	tonnes	0.0
	Amount of waste directed to disposal by treatment type – Radioactive	tonnes	0.1
Topic	Description	Unit	2024
Non-recycled	Preparation for reuse	tonnes	166
	Non-recycled waste (including preparation for reuse)	tonnes	4,693
	Non-recycled waste (including preparation for reuse)	%	34.7%

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	248
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Metrics table (continued)

Topic	Description	Unit	2024
Non-hazardous waste	General waste	tonnes	3,295
	Waste wood	tonnes	2,611
	Construction waste	tonnes	1,419
	Metals	tonnes	1,377
	Paper and cardboard	tonnes	1,079
	Plastic	tonnes	729
	Organic waste	tonnes	334
	Electronics	tonnes	346
	Glass	tonnes	16
	Other non-hazardous waste	tonnes	1,307
	Total non-hazardous waste	tonnes	12,513
Topic	Description	Unit	2024
Hazardous waste	Hazardous liquids	tonnes	852
	Filters	tonnes	62
	Empty packaging	tonnes	35
	Cleaning wipes	tonnes	8
	Lamps	tonnes	1
	Batteries	tonnes	1
	Other hazardous waste	tonnes	65
	Total hazardous waste	tonnes	1,024

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	249
General disclosures	Environmental	Social	Governance
---	---	---	---

Circular economy: Additional disclosures

Methodology on targets

Systems

Percentage of systems sold in the past 30 years still

active in the field

We monitor the number of active systems in our

installed base. This includes our EUV, DUV and

PAS 5500 systems. We have calculated the

percentage of all systems ever sold that are still in

use. Some systems in the field may not be

serviced by ASML, but are operational. For the

indicator '% of active systems' we apply

assumptions for the portion of systems active but

not serviced by ASML. Based on historical

information and experience, we estimate that

33% of non-ASML-serviced systems are still

active in the field.

Parts and tools including packaging and

transport 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

worldwide.

Non-product-related waste (hazardous and

non-hazardous)

Achieve 295 kg of waste from operations (excluding

construction waste) / €m revenue by 2025

The total waste from operations (excluding

construction) is normalized to revenue per year.

The kilograms of waste are determined via

information provided by our waste disposal

contractors. Waste from operations, measured in

kilograms, is reported in our environmental

management system, which allows us to monitor

progress toward our target.

Achieve a 65% recycling rate of waste from operations

(excluding construction) by 2025

The recycling rate is calculated based on

information on waste disposal methods provided

by our waste disposal contractors.

Construction waste
Construction waste is excluded from the<br><br>calculation of our targets because it does not<br><br>result from our daily operations. The amount<br><br>tends to fluctuate over the years and can<br><br>therefore make the trend of the indicator unclear.<br><br>However, construction waste is included in our<br><br>actuals.
Methodology on metrics
---

E5-4 Resource inflows

Resource inflows

The resource inflows needed to build our systems

are material. They consist of products, materials

and their packaging. Some inflows contain critical

raw materials and rare earths. Among these are

tantalum, tungsten, tin and gold.

Read more on Conflict minerals in Sustainability

statements – Social – Responsible value chain

Weight

Weights are derived from material master data.

If weights therein are not (yet) available, we have

used estimation techniques.

Weight of primary raw materials

Establishing the weight of primary raw materials

used during the reporting period is challenging

due to the vast number of parts in our systems.

Despite our significant efforts to gather the

necessary information, we experienced difficulties

in obtaining the weights of several materials and

parts. As a result, we are unable to provide data

that fully meets this requirement. Consequently,

we report a ‘-’ for the following metrics:

•Percentage of biological materials used in

manufacturing that are sustainably sourced

•Products and technical and biological materials

used

•Percentage of secondary reused or recycled

components, secondary intermediary products

and secondary materials used in manufacturing

(including packaging)

•Percentage of secondary recycled components

used to manufacture products and services

(including packaging)

•Percentage of recyclable content in products

and their packaging

Weight of secondary reused or recycled components,

secondary intermediary products, and secondary

materials used to manufacture products and services

(including packaging)

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.

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

every subsequent entry that the component

makes into the production process in the

reporting year.

Biological materials

We use wood in our packaging. If this wood is

certified according to the standards of the Forest

Stewardship Council (FSC) or the Programme for

the Endorsement of Forest Certification (PEFC),

we consider it to be sustainably sourced. If wood

is one of the elements of the packaging, subject

matter experts have estimated the mass included

in this metric. In using wood in our packaging, we

support the cascading use of wood principles.

Cascading use is a strategy to use raw materials

such as wood, or other biomass, 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 life cycle. It is the intention that the

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 metric regarding this topic.

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 is 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 the waste we own

or control. Waste disposal methods are reported

by our waste disposal contractor.

For (leased) office locations where waste hauler

data is not available, the office waste is estimated

based on square meters and the average office

waste per square meter for comparable offices as

a proxy.

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. However, we

report the full weight, 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 and the only certified storage facility

for radioactive waste in the Netherlands.

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 that

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. This includes the waste prepared for

reuse.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	250
General disclosures	Environmental	Social	Governance
---	---	---	---

EU Taxonomy at a glance

All figures based on EU-IFRS

Overview
The EU Taxonomy<br><br>Regulation (EU 2020/852)<br><br>aims to create a<br><br>common language and<br><br>methodology for<br><br>reporting on<br><br>sustainability by<br><br>providing appropriate<br><br>criteria for determining<br><br>which economic<br><br>activities can be<br><br>considered<br><br>environmentally<br><br>sustainable. The EU<br><br>Taxonomy requires<br><br>companies to report to<br><br>what extent their<br><br>economic activities are<br><br>Taxonomy–eligible and<br><br>aligned.		Summary
---	---	---	---	---
	FY 2024	%	FY 2023	%
Turnover	28,262.9	100%	27,558.5	100%
Taxonomy-aligned turnover	0.0	0%	0.0	0%
Taxonomy-eligible turnover	27,669.8	98%	26,668.5	97%
CE 1.2 Manufacturing of electrical equipment	23,402.2	83%	23,903.0	87%
CE 5.1 Repair, refurbishment and remanufacturing	3,595.3	13%	2,404.0	9%
CE 5.2 Sale of spare parts	42.1	0%	45.5	0%
CE 5.4 Sale of second-hand goods	630.2	2%	316.0	1%
Taxonomy-non-eligible turnover	593.1	2%	890.0	3%
Capital expenditure	3,315.0	100%	3,394.2	100%
Taxonomy-aligned capex	74.1	2%	0.0	0%
CCM 7.7 Acquisition and ownership of buildings	74.1	2%	0.0	0%
Taxonomy-eligible capex	2,768.7	84%	1,614.2	48%
CE 1.2 Manufacturing of electrical equipment	1,879.2	57%	945.4	28%
CCM 4.1 Electricity generation using solar photovoltaic technology	2.2	0%	0.0	0%
CCM 4.9 Transmission and distribution of electricity	25.2	1%	0.0	0%
CCM 7.2 Renovation of existing buildings	252.2	8%	35.1	1%
CCM 7.7 Acquisition and ownership of buildings	609.9	18%	633.7	19%
Taxonomy-non-eligible capex	472.2	14%	1,780.0	52%
Operational expenditure	3,181.0	100%	3,035.2	100%
Taxonomy-aligned opex	0.0	0%	0.0	0%
Taxonomy-eligible opex	3,181.0	100%	3,035.2	100%
CE 1.2 Manufacturing of electrical equipment	3,181.0	100%	3,035.2	100%
Taxonomy-non-eligible opex	0.0	0%	0.0	0%

The EU Taxonomy Regulation (EU 2020/852)

is a core part of the European Green Deal.

It supports the flow of capital toward more

sustainable economic activities by creating a

common language and standardized reporting

methodology that helps determine which

activities can and cannot be considered

‘environmentally sustainable’.

The EU Taxonomy requires companies to

report to what extent their economic activities

are Taxonomy-eligible and aligned. For the

2024 reporting period, non-financial

undertakings are required to disclose the

proportion of key performance indicators –

namely turnover, capital expenditure (capex)

and operational expenditure (opex) – which is

associated with activities eligible and aligned

with one or more of the following six objectives:

1	Climate change mitigation (CCM)
2	Climate change adaptation (CCA)
3	Sustainable use and protection of water and<br><br>marine resources (WTR)
4	Transition to a circular economy (CE)
5	Pollution prevention and control (PPC)
6	Protection and restoration of biodiversity<br><br>and ecosystems (BIO)		Turnover
---

Overview of turnover, including environmental

objectives, key activities.

Read more on page 255 >

Capital expenditure

Overview of capital expenditure, including

environmental objectives and key activities.

Read more on page 256 >

Operational expenditure

Overview of operational expenditure,

including environmental objectives and

key activities.

Read more on page 258 >

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	251
General disclosures	Environmental	Social	Governance
---	---	---	---

The EU Taxonomy at ASML

All figures based on EU-IFRS

EU Taxonomy disclosure

The EU Taxonomy alignment assessment considers

whether the economic activity:

•Is Taxonomy-eligible (i.e. if the economic activity is

included in the EU Taxonomy list of eligible activities)

•Makes a substantial contribution to at least one of the

environmental objectives

•Does not significantly harm (DNSH) any of the other

objectives

•Meets minimum safeguards constituted chiefly by the

OECD Guidelines and UN Guiding Principles

The substantial contribution and DNSH criteria are

collectively referred to as the ‘technical screening

criteria’.

Reporting scope

The 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.

The 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.

Basis for preparation

We prepared our EU Taxonomy disclosure in accordance

with Commission Delegated Regulations EU 2021/2178

and EU 2023/2486, as well as Commission Notices

answering frequently asked questions (FAQs) about EU

Taxonomy reporting.

We used Regulation (EU) 2020/852 as supplemented

with Commission Delegated Regulations (EU) 2021/2139,

(EU) 2023/2485 and (EU) 2023/2486) to identify eligible

activities, assess which activities were aligned, and

screen alignment with the minimum safeguards. We also

calculated metrics for eligibility and alignment based on

these screening results.

For the EU Taxonomy assessment, we applied a

materiality threshold – that is in line with our financial

reporting – to focus on the activities with the highest

environmental impact.

Finally, our EU Taxonomy activities can potentially

substantial contribute to multiple environmental

objectives; to prevent double counting this is indicated in

the numerator of turnover, capex and opex KPIs across

activities in the templates.

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.

Relevant information from the detailed EU Taxonomy

templates for the KPIs of non-financial undertakings are

included in the following sections.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	252
General disclosures	Environmental	Social	Governance
---	---	---	---

The EU Taxonomy at ASML (continued)

All figures based on EU-IFRS

Eligibility overview

The table below indicates the environmental objective, eligible activity and the related KPI. We

identified two new eligible activities compared to 2023, being activity 4.1 Electricity generation

using solar photovoltaic technology and 4.9 Transmission and distribution of electricity.

The next 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.

Environmental objective	Taxonomy-eligible activity	Related KPI
Circular economy (CE)	1.2 Manufacture of electrical and<br><br>electronic equipment	Turnover, opex, capex
Climate change mitigation (CCM)	4.1 Electricity generation using solar<br><br>photovoltaic technology	Capex
Climate change mitigation (CCM)	4.9 Transmission and distribution<br><br>of electricity	Capex
Circular economy (CE)	5.1 Repair, refurbishment and<br><br>remanufacturing	Turnover
Circular economy (CE)	5.2 Sale of spare parts	Turnover
Circular economy (CE)	5.4 Sale of second-hand goods	Turnover
Climate change mitigation (CCM)	7.2 Renovation of existing buildings	Capex
Climate change mitigation (CCM)	7.7 Acquisition and ownership of buildings	Capex		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<br><br>screening criteria		Compliance<br><br>with minimum<br><br>safeguards	Alignment with<br><br>Taxonomy		Manufacture<br><br>of electrical and<br><br>electronic equipment<br><br>(CE 1.2)	Technical screening criteria are not met FY 2024	We are compliant<br><br>with minimum<br><br>safeguards FY 2024.	Turnover<br><br>98% eligible – not<br><br>aligned<br><br>0% eligible – aligned<br><br>2% not eligible
---	---	---	---
Electricity generation<br><br>using solar photovoltaic<br><br>technology<br><br>(CCM 4.1)	Technical screening criteria are not met FY 2024
Transmission &<br><br>distribution of electricity<br><br>(CCM 4.9)	Technical screening criteria are not met FY 2024		Capital expenditure<br><br>84% eligible – not<br><br>aligned<br><br>2% eligible – aligned<br><br>14% not eligible
Repair, refurbishment<br><br>and remanufacturing<br><br>(CE 5.1)	Technical screening criteria are not met FY 2024
Sale of spare parts<br><br>(CE 5.2)	Technical screening criteria are not met FY 2024
Sale of second-hand goods<br><br>(CE 5.4)	Technical screening criteria are not met FY 2024		Operational<br><br>expenditure<br><br>100% eligible – not<br><br>aligned<br><br>0% eligible – aligned<br><br>0% not eligible
Renovation of existing<br><br>buildings<br><br>(CE 7.2)	Technical screening criteria are not met FY 2024
Acquisition and<br><br>ownership of buildings<br><br>(CE 7.7)	Technical screening criteria are met FY 2024
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	253
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

The EU Taxonomy at ASML (continued)

All figures based on EU-IFRS

Taxonomy eligibility assessment

We assessed the eligibility of our economic activities in

2024 against the six 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 Manufacturing of electrical and

electronic equipment for industrial, professional and

consumer use.

We also repair and refurbish our machines. This includes

warranties and service contracts to extend a product’s

lifetime and restore or improve performance or

functionality. Finally, we also offer spare parts to

customers when they are needed and resell systems

that have been used by a customer. Our non-eligible

turnover relates to activities not included in the Climate

and Environmental Delegated Acts, such as our

software, training and other service projects.

Turnover

<	Not eligible	2%
<	Eligible – Not aligned (A.2)	98%
<	Eligible – Aligned (A.1)	0%

Capital expenditure

The proportion of total capex relating to Taxonomy-

eligible activities is determined by assessing the

economic activities for each significant asset group.

Groups below the threshold compared to the overall

capex, as defined by the EU Taxonomy Regulation, have

been excluded and are reported as non-eligible capex.

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, as the focus of the renovation was to

improve energy efficiency rather than circularity.

We also carried out several construction projects. The

capex corresponding to these projects is considered

eligible under economic activity CCM 7.7 Acquisition

and ownership of buildings. 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. Furthermore, we have concluded that capex related

to machinery and equipment which are associated with

our Taxonomy eligible economic activity CE1.2

Manufacturing of electrical and electronic equipment

can be considered as eligible capex. Therefore we

adjusted our 2023 comparative figures, resulting in 87%

eligibility. Finally, the majority of property, plant and

equipment in relation to right-of-use assets is related to

land and therefore considered not eligible.

Capital expenditure

<	Not eligible	14%
<	Eligible – Not aligned (A.2)	84%
<	Eligible – Aligned (A.1)	2%
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	254
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

The EU Taxonomy at ASML (continued)

All figures based on EU-IFRS

Operational expenditure

The EU Taxonomy defines the denominator of the opex

KPI as any direct non-capitalized costs that relate to

R&D, 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 total opex for ASML is limited

to R&D costs in the Consolidated financial statements

which is eligible under CE 1.2. The proportion of total

opex that relates to Taxonomy-eligible and aligned

activities is determined by assessing opex related to

assets or processes associated with Taxonomy-eligible

and aligned activities, such as training, other human

resources adaptation needs, and direct non-capitalized

costs that represent R&D.

| The EU Taxonomy<br><br>requires companies<br><br>to report to what<br><br>extent their economic<br><br>activities are<br><br>Taxonomy-eligible<br><br>and aligned. | | --- || Operational expenditure | | --- |

<	Not eligible	0%
<	Eligible – Not aligned (A.2)	100%
<	Eligible – Aligned (A.1)	0%

Minimum safeguards

Article 18 of the EU Taxonomy also outlines the

minimum safeguards (MS) criteria that must be met for

an economic activity to be considered Taxonomy-

aligned. These safeguards essentially act as a ‘safety

net’ to ensure that while an activity contributes to an

environmental objective, it does not, for example, breach

human rights law – the minimum safeguards essentially

work to mandate a just transition.

The MS can also be categorized into four topics: human

rights (including labor and consumer rights), anti-bribery

and anti-corruption, taxation and fair competition. After

the update of the OECD Guidelines for Multinational

Enterprises in 2023 we further improved our processes

to identify, cease, prevent, mitigate and remediate

human rights impacts in our value chains to align our

operations and practices with the update.

For more detailed information, we refer to the ASML

Code of Conduct, the ASML Human Rights Policy or the

RBA Code of Conduct for ASML’s current practices

related to human rights in our own operation and value

chains.

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 the EU

Taxonomy is considered not relevant. The following

table is the mandatory table outlined in this

Complementary Climate Delegated Act.

Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to<br><br>research, development, demonstration and<br><br>deployment of innovative electricity generation facilities<br><br>that produce energy from nuclear processes with<br><br>minimal waste from the fuel cycle.	No
2	The undertaking carries out, funds or has exposures to<br><br>construction and safe operation of new nuclear<br><br>installations to produce electricity or process heat,<br><br>including for the purposes of district heating or<br><br>industrial processes such as hydrogen production, as<br><br>well as their safety upgrades, using best available<br><br>technologies.	No
3	The undertaking carries out, funds or has exposures to<br><br>safe operation of existing nuclear installations that<br><br>produce electricity or process heat, including for the<br><br>purposes of district heating or industrial processes<br><br>such as hydrogen production from nuclear energy, as<br><br>well as their safety upgrades.	No
Fossil gas related activities
4	The undertaking carries out, funds or has exposures to<br><br>construction or operation of electricity generation<br><br>facilities that produce electricity using fossil gaseous<br><br>fuels.	No
5	The undertaking carries out, funds or has exposures to<br><br>construction, refurbishment and operation of combined<br><br>heat/cool and power generation facilities using fossil<br><br>gaseous fuels.	No
6	The undertaking carries out, funds or has exposures to<br><br>construction, refurbishment and operation of heat<br><br>generation facilities that produce heat/cool using fossil<br><br>gaseous fuels.	No
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	255
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Turnover

All figures based on EU-IFRS

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. Specifically, the criteria under 2.4 Design for

dismantling, 2.5 Design for recyclability, 2.6 Proactive

substitution of hazardous substances and 2.7

Information to customers are not fully met.

For this reason, we are reporting 0% of aligned activities

for these economic activities. Since the reporting of

alignment for the Environmental Delegated Act outlining

the circular economy activities is only applicable as of the

reporting period 2024, no comparative alignment figures

are included in the table below.

Currently, we have no objectives or plans (capex plans

as referred to by the Disclosures Delegated Act) for

aligning our economic activities under turnover with the

criteria established in the near future.

Financial year 2024				Substantial contribution criteria						DNSH criteria
Economic activities (1)	Code<br><br>(2)	Turnover<br><br>(3)	Proportion<br><br>of turnover<br><br>(4)	Climate<br><br>change<br><br>mitigation<br><br>(5)	Climate<br><br>change<br><br>adaptation<br><br>(6)	Water<br><br>(7)	Pollution<br><br>(8)	Circular<br><br>economy<br><br>(9)	Bio-<br><br>diversity<br><br>(10)	Climate<br><br>change<br><br>mitigation<br><br>(11)	Climate<br><br>change<br><br>adaptation<br><br>(12)	Water<br><br>(13)	Pollution<br><br>(14)	Circular<br><br>economy<br><br>(15)	Bio-<br><br>diversity<br><br>(16)	Minimum<br><br>safeguards<br><br>(17)	Proportion<br><br>of<br><br>Taxonomy-<br><br>aligned<br><br>(A.1) or<br><br>eligible<br><br>(A.2)<br><br>Turnover,<br><br>year<br><br>N-1 (18)	Category<br><br>(enabling<br><br>activity)<br><br>(19)	Category<br><br>(transitional<br><br>activity)<br><br>(20)
		€, in millions	%	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N	Y; N	Y; N	Y; N	Y; N	Y; N	Y; N	%	E	T
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
capex of environmentally sustainable activities (Taxonomy-aligned) (A.1)		0.0	0%	0%	0%	0%	0%	0%	0%
Of which, enabling		0.0	0%	0%	0%	0%	0%	0%	0%									E
Of which, transitional		0.0	0%	0%															T
A.2 Taxonomy-eligible but not environmentally sustainable activities
				EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1
Manufacturing of electrical equipment	CE 1.2	23,402.2	83%	N/EL	N/EL	N/EL	N/EL	EL	N/EL								87%
Repair, refurbishment and remanufacturing	CE 5.1	3,595.3	13%	N/EL	N/EL	N/EL	N/EL	EL	N/EL								9%
Sale of spare parts	CE 5.2	42.1	0%	N/EL	N/EL	N/EL	N/EL	EL	N/EL								0%
Sale of second-hand goods	CE 5.4	630.2	2%	N/EL	N/EL	N/EL	N/EL	EL	N/EL								1%
Turnover of Taxonomy-eligible but not environmentally sustainable activities<br><br>(not Taxonomy-aligned activities) (A.2)		27,669.8	98%	0%	0%	0%	0%	98%	0%								97%
A. Turnover of Taxonomy-eligible activities (A.1+A.2)		27,669.8	98%	0%	0%	0%	0%	98%	0%								97%
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible activities		593.1	2%
Total		28,262.9	100%

1. EL: Eligible; N/EL: Non-eligible

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	256
General disclosures	Environmental	Social	Governance
---	---	---	---

Capital expenditure

All figures based on EU-IFRS

For all our eligible capital expenditure (capex) activities,

we assessed the technical screening criteria.

For all eligible construction and renovation activities, a

physical climate risk assessment was needed pursuant

to Appendix A to the Climate Delegated Act to meet the

DNSH criteria. In 2024, we continued the application of

TCFD guidelines to assess physical and transition risks

and opportunities in 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 ‘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.

Read more in our TCFD Report: Climate-related disclosure,

available at asml.com

The buildings in scope for renovation (CCM 7.2) met the

substantial contribution criteria by reducing the primary

energy demand by more than 30%. However, the DNSH

criteria relating to water usage were not met; as such,

we report 0% alignment on CCM 7.2. The buildings in

scope for 7.7 Acquisition and ownership of buildings

(CCM 7.7) meet the technical screening criteria, resulting

in 2% of aligned activities.

Property, plant and equipment in relation to right-of-use

assets were considered not aligned under activity CCM

7.2. The information needed to assess the TSC and

DNSH is not available for the buildings we lease.

We consider, therefore, the technical screening and the

DNSH criteria as not met, and as such are reporting

0% alignment.

Since the technical screening criteria for our activities

under circular economy are not met, we also report 0%

alignment related to assets and processes that are

associated with the economic activities under circular

economy.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	257
General disclosures	Environmental	Social	Governance
---	---	---	---

Capital expenditure (continued)

All figures based on EU-IFRS

Financial year 2024				Substantial contribution criteria						DNSH criteria
Economic activities<br><br>(1)	Code<br><br>(2)	Capex<br><br>(3)	Proportion<br><br>of capex<br><br>(4)	Climate<br><br>change<br><br>mitigation<br><br>(5)	Climate<br><br>change<br><br>adaptation<br><br>(6)	Water<br><br>(7)	Pollution<br><br>(8)	Circular<br><br>economy<br><br>(9)	Bio<br><br>diversity<br><br>(10)	Climate<br><br>change<br><br>mitigation<br><br>(11)	Climate<br><br>change<br><br>adaptation<br><br>(12)	Water<br><br>(13)	Pollution<br><br>(14)	Circular<br><br>economy<br><br>(15)	Bio<br><br>diversity<br><br>(16)	Minimum<br><br>safeguards<br><br>(17)	Proportion of<br><br>Taxonomy aligned<br><br>(A.1) or<br><br>eligible (A.2)<br><br>capex, year<br><br>N-1 (18)	Category<br><br>(enabling<br><br>activity)<br><br>(19)	Category<br><br>(transitional<br><br>activity)<br><br>(20)
		€, in millions	%	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N	Y; N	Y; N	Y; N	Y; N	Y; N	Y; N	%	E	T
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Acquisition and ownership of buildings	CCM 7.7	74.1	2%	Y	N	N/EL	N/EL	N/EL	N/EL		Y	Y	Y	Y	Y	Y	0%	E
Capex of environmentally sustainable activities (Taxonomy-<br><br>aligned) (A.1)		74.1	2%	2%	0%	0%	0%	0%	0%								0%
Of which, enabling		74.1	2%	2%	0%	0%	0%	0%	0%								0%	E
Of which, transitional		0.0	0%	0%													0%		T
A.2 Taxonomy-eligible but not environmentally sustainable (not Taxonomy-aligned<br><br>activities)
				EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1
Manufacturing of electrical equipment	CE 1.2	1,879.2	57%	N/EL	N/EL	N/EL	N/EL	EL	N/EL								59%
Electricity generation using solar photovoltaic technology	CCM 4.1	2.2	0%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0%
Transmission & distribution of electricity	CCM 4.9	25.2	1%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0%
Renovation of existing buildings	CCM 7.2<br><br>CCA 7.2<br><br>CE 3.2	252.2	8%	EL	EL	N/EL	N/EL	EL	N/EL								1%
Acquisition and ownership of buildings	CCM 7.7<br><br>CCA 7.7	609.9	18%	EL	EL	N/EL	N/EL	N/EL	N/EL								19%
Capex of Taxonomy-eligible but not environmentally sustainable<br><br>activities (not Taxonomy-aligned activities) (A.2)		2,768.7	84%	27%	0%	0%	0%	57%	0%								79%
A. Capex of Taxonomy-eligible activities (A.1+A.2)		2,842.8	86%	29%	0%	0%	0%	57%	0%								79%
B. Taxonomy-non-eligible activities
Capex of Taxonomy-non-eligible activities		472.2	14%
Total		3,315.0	100%

1. EL: Eligible; N/EL: Non-Eligible

	Proportion of capex / total capex
	Taxonomy-aligned per objective	Taxonomy-eligible per objective
Climate change mitigation (CCM)	2%	27%
Climate change adaption (CCA)	0%	26%
Water (WTR)	0%	0%
Circular economy (CE)	0%	65%
Pollution (PPT)	0%	0%
Bio diversity (BIO)	0%	0%

The table on the left indicates the extent of eligibility and alignment per environmental objective, including activities contributing

substantially to several objectives.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	258
General disclosures	Environmental	Social	Governance
---	---	---	---

Operational expenditure

All figures based on EU-IFRS

For all our eligible operational expenditure (opex)

activities, we assessed the technical screening criteria.

The proportion of total opex that relates to Taxonomy-

aligned activities is determined by assessing opex

related to assets or processes associated with

Taxonomy-aligned economic activities, including training

and other human resources adaptation needs, and

direct non-capitalized costs that represent R&D. 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 are not met, we report

0% alignment related to assets and processes that are

associated with the economic activities under circular

economy.

Since the reporting of alignment for the Environmental

Delegated Act outlining the circular economy activities is

only applicable as of the reporting period 2024, no

comparative alignment figures are included in the table

below.

Financial year 2024				Substantial contribution criteria						DNSH criteria
Economic activities<br><br>(1)	Code<br><br>(2)	Opex<br><br>(3)	Proportion<br><br>of opex (4)	Climate<br><br>change<br><br>mitigation<br><br>(5)	Climate<br><br>change<br><br>adaptation<br><br>(6)	Water<br><br>(7)	Pollution<br><br>(8)	Circular<br><br>economy<br><br>(9)	Bio-<br><br>diversity<br><br>(10)	Climate<br><br>change<br><br>mitigation<br><br>(11)	Climate<br><br>change<br><br>adaptation<br><br>(12)	Water<br><br>(13)	Pollution<br><br>(14)	Circular<br><br>economy<br><br>(15)	Bio-<br><br>diversity<br><br>(16)	Minimum<br><br>safeguards<br><br>(17)	Proportion<br><br>of<br><br>Taxonomy-<br><br>aligned<br><br>(A.1) or<br><br>eligible<br><br>(A.2)<br><br>opex, year<br><br>N-1 (18)	Category<br><br>(enabling<br><br>activity)<br><br>(19)	Category<br><br>(transitional<br><br>activity)<br><br>(20)
		€, in millions	%	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N;<br><br>N/EL	Y; N	Y; N	Y; N	Y; N	Y; N	Y; N	Y; N	%	E	T
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Opex of environmentally sustainable activities (Taxonomy-aligned) (A.1)		0.0	0%	0%	0%	0%	0%	0%	0%
Of which, enabling		0.0	0%	0%	0%	0%	0%	0%	0%									E
Of which, transitional		0.0	0%																T
A.2 Taxonomy-eligible but not environmentally sustainable (not Taxonomy-<br><br>aligned activities)
				EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1	EL; N/EL1
Manufacturing of electrical equipment	CE 1.2	3,181.0	100%	N/EL	N/EL	N/EL	N/EL	EL	N/EL								100%
Opex of Taxonomy-eligible but not environmentally sustainable<br><br>activities (not Taxonomy-aligned activities) (A.2)		3,181.0	100%	0%	0%	0%	0%	100%	0%								100%
A. Opex of Taxonomy-eligible activities (A.1+A.2)		3,181.0	100%	0%	0%	0%	0%	100%	0%								100%
B. Taxonomy-non-eligible activities
Opex of Taxonomy-non-eligible activities		0.0	0%
Total		3,181.0	100%

1. EL: Eligible; N/EL: Non-Eligible

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	259
General disclosures	Environmental	Social	Governance
---	---	---	---

Social at a glance

Our ambition
We aim to have a<br><br>positive social impact by<br><br>providing an attractive<br><br>workplace, ensuring a<br><br>responsible value chain,<br><br>supporting an innovation<br><br>ecosystem and being a<br><br>valued partner in our<br><br>communities.
On the following pages,<br><br>we set out our approach<br><br>and progress to date.

Attractive<br><br>workplace for all
We aim to attract and retain a healthy,<br><br>diverse and engaged workforce – one<br><br>that is proud to be part of ASML and that<br><br>can deliver on our vision and ambitions.<br><br>We aim to attract and retain a healthy,<br><br>diverse and engaged workforce.
Read more on page 260 >
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>•Diversity and inclusion<br><br>•Occupational health and safety<br><br>•Labor conditions<br><br>•Well-being		Innovation ecosystem
---
We aim to collaborate with partners to<br><br>build a thriving, multi-regional innovation<br><br>ecosystem that helps solve some of<br><br>humanity’s toughest challenges.<br><br>A thriving, multi-regional innovation<br><br>ecosystem that helps solve some of<br><br>humanity’s toughest challenges.
Read more on page 297 >
We’ll do this by focusing<br><br>on the following sub-topics:
•ESG innovation<br><br>•STEM education to feed the STEM<br><br>pipeline for ASML

Responsible value chain
We aim to work with value chain partners<br><br>that are aligned with our values and<br><br>committed to upholding international<br><br>human rights and environmental standards.<br><br>We aim to prevent, mitigate and manage<br><br>adverse environmental and human<br><br>rights impacts in our value chain.	We’ll do this by focusing<br><br>on the following sub-topics:
	•Responsible product design<br><br>•Responsible supply chain<br><br>•Responsible product use
Read more on page 288 >
Valued partner in our communities
We aim for our communities to benefit from<br><br>our presence as we benefit from theirs –<br><br>supporting each other’s development by<br><br>playing an active role locally, everywhere<br><br>we operate.<br><br>ASML and communities benefit from<br><br>each other’s presence and support each<br><br>other’s development.
Read more on page 306 >
We’ll do this by focusing<br><br>on the following sub-topics:
•Attractive communities<br><br>•Inclusive communities<br><br>•Investing in STEM education

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	260
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all

We aim to attract and retain a healthy, diverse and engaged workforce

Our 2024 progress:
78.9%	26%
Employee engagement score<br><br>(three-year rolling average)	Gender diversity:<br><br>% inflow of women
(2025 target: >-2.0% vs. top 25% performing<br><br>companies. Employee engagement score against<br><br>benchmark 2024 -2.1%)	(2025 target: 24%)
3.8%	30%
Attrition rate	Gender diversity: % inflow of<br><br>women to job grade 9+
(2025 target: <7%)	(2025 target: 24%)
12%	18%
Gender diversity: %<br><br>representation of women<br><br>in job grade 13+	Gender diversity: % inflow of<br><br>women to job grade 13+
(2024 target: 12%)	(2024 target: 20%)
Why it matters
---		...for the planet	...for ASML
---	---
As an employer we have a responsibility to<br><br>provide a working environment where<br><br>people can develop their talents, feel<br><br>respected and safe, and be healthy and<br><br>thrive.<br><br>This includes creating an inclusive culture<br><br>where people are supported in their<br><br>learning, leadership, advancement and<br><br>well-being. We want to foster an<br><br>exceptional workplace for our exceptional<br><br>talent. By prioritizing employee<br><br>development and well-being, we empower<br><br>employees to contribute meaningfully to<br><br>their communities.	As a key partner in the semiconductor<br><br>ecosystem, we have a responsibility to<br><br>deliver the technology our customers need<br><br>to drive innovation. To maintain our fast<br><br>pace of innovation, we need to attract and<br><br>retain the best talent. By investing in our<br><br>people, we help them reach their full<br><br>potential and enable us to keep driving<br><br>technology forward.<br><br>We expect a significant growth in number<br><br>of employees by 2030 – strong leadership,<br><br>people development, and inclusion will be<br><br>crucial for this and for our future success.		Creating a safe and inclusive culture<br><br>where people are supported in their<br><br>learning, leadership and advancement,<br><br>and well-being is important:
---
...for our customers
Our diverse and highly skilled people are key to<br><br>meeting the needs of our customers through quality<br><br>innovation and support.
...for our employees
Creating a fair working environment where people can<br><br>grow to their full potential, feel respected and safe is<br><br>key to attracting and retaining the best talent.
...for our suppliers
Our people approach is closely aligned with our values<br><br>which extend to our value chain partners and aligned<br><br>to upholding international human rights.
...for our shareholders
Engaged, diverse and highly skilled people are key to<br><br>our fast pace of innovation and long-term success.
...for society
By upholding international human rights and providing<br><br>for fair and secure employment opportunities,  we<br><br>enhance the quality of life of many members of the<br><br>community who we call our employees and whose<br><br>causes we support in giving back to society.
Read more about our double materiality process<br><br>and identified impacts, risks and opportunities for<br><br>this theme in Sustainability statements – General<br><br>disclosures – Impact, risk and opportunity<br><br>management

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	261
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: How we’re managing

Our objective
We strive to empower our workforce to deliver<br><br>on our vision by ensuring people are proud to<br><br>be part of ASML and are engaged with our<br><br>ambitions.<br><br>Healthy, diverse, engaged and highly skilled<br><br>people are key to our performance and long-<br><br>term success. We aim to create an exceptional<br><br>workplace for our exceptional talent.
	Talent attraction,<br><br>employee engagement<br><br>and retention		Learning and<br><br>development			Diversity and inclusion
				Foster inclusion, diversity<br><br>and belonging in a safe<br><br>environment for all ASML<br><br>workers, where everyone is<br><br>valued, respected and can<br><br>fully contribute.
	Enable an exceptional<br><br>workplace allowing ASML<br><br>to attract, engage and<br><br>retain exceptional talent to<br><br>support the growth of the<br><br>company.		Provide employees with the<br><br>right knowledge, expertise,<br><br>skills and competencies to<br><br>maintain technological<br><br>leadership and empower<br><br>them to take responsibility<br><br>for their personal<br><br>development and career<br><br>ambitions.
	Occupational health<br><br>and safety		Labor conditions			Well-being
		Provide fair labor conditions<br><br>and social protection for all<br><br>workers, regardless of their<br><br>location and whether they<br><br>are on fixed or temporary<br><br>contracts.			Support employees in<br><br>maintaining a healthy,<br><br>productive and balanced<br><br>life by integrating well-being<br><br>into everyone’s day-to-day<br><br>work.
	Provide injury-free and<br><br>healthy working conditions<br><br>for everyone on our<br><br>premises by eliminating<br><br>hazards, reducing safety<br><br>risks and preventing<br><br>occupational ill health.							Specific roles and<br><br>responsibilities for this topic
---
The following sub-committees support the<br><br>operational execution of the people<br><br>strategy:<br><br>Our Global Diversity and Inclusion<br><br>Council (GDIC) consists of senior leaders<br><br>who act on our behalf to provide thought<br><br>leadership. The Council, chaired by the<br><br>Chief Executive Officer, proposes the<br><br>diversity and inclusion (D&I) strategy to<br><br>the Board of Management (BoM), sets,<br><br>promotes and monitors D&I initiatives<br><br>and leads company-wide accountability<br><br>for our goals. The D&I team is responsible<br><br>for driving initiatives across ASML. There<br><br>is also a US D&I Council with a similar<br><br>make-up of business leaders across the US.<br><br>Our Environment, Health and Safety<br><br>(EHS) and Business Continuity<br><br>Committee, chaired by the Chief<br><br>Operations Officer, oversees and<br><br>approves the EHS strategy. Line<br><br>managers are responsible for day-to-day<br><br>EHS management and performance. The<br><br>EHS Competence Center (EHS Experts)<br><br>brings together best practices, defines our<br><br>EHS standards and supports managers to<br><br>implement these standards in the<br><br>workplace.
Read more about roles and responsibilities in<br><br>Sustainability statements – General disclosures –<br><br>ESG sustainability governance
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	262
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: How we’re managing (continued)

| Our approach | | --- || ASML people strategy | | --- |

Our people strategy builds on a solid

foundation and on our values. Our strategic

approach is based on four pillars: making

our organization more scalable and

sustainable by ensuring clarity and

knowledge-sharing; building a workplace

that works for everyone by fostering

inclusion, diversity and belonging; investing

in people development for all employees and

strengthening our leadership by accelerating

their development; and building a pipeline of

future leaders.

Our Attractive Workplace for All Policy

applies to all our workers – employees,

directors and officers of ASML and the

ASML group of companies. In some cases,

the scope of this policy extends to non-

employees, either working for temporary

placement agencies, on behalf of ASML or

as individual contractors (self-employed

people).

In joint ventures and strategic partnerships

where we have a non-controlling interest –

for example, in instances where our staff are

also working at our customers’ own sites –

we make reasonable efforts to ensure

consistency with the policy. In addition, we

expect third parties – defined as any non-

ASML legal entity or individual with whom

ASML engages in a business relationship –

to participate in a common effort toward

protecting the human rights of our

workforce.

The Attractive Workplace for All Policy is

closely linked to the ASML Code of

Conduct, the RBA Code of Conduct, the

ASML Human Rights Policy and the ASML

Global Diversity and Inclusion Policy.

Read more in our Human Rights Policy and in

Sustainability statements – Social – Responsible

value chain – Responsible supply chain

We have identified the following workforce-

related material sub-topics:

•Talent attraction, employee engagement

and retention

•Learning and development

•Diversity and inclusion

•Occupational health and safety

•Labor conditions

•Well-being

Develop a scalable<br><br>and sustainable<br><br>organization		Build a workplace<br><br>that works<br><br>for everyone
	Exceptional talent,<br><br>exceptional workplace
Invest in people<br><br>effectiveness and<br><br>development		Strengthen our<br><br>leadership		Human rights
---
We support the guidelines laid down in<br><br>the UN Guiding Principles on Business<br><br>and Human Rights (UNGPs) and are<br><br>committed to the International Bill of<br><br>Human Rights. The provisions of our<br><br>Human Rights Policy are derived from key<br><br>international human rights standards<br><br>including the ILO Declaration on<br><br>Fundamental Principles and Rights at<br><br>Work and the UN Declaration of Human<br><br>Rights, the UN Global Compact, the<br><br>principles specified in the OECD<br><br>Guidelines for Multinational Enterprises,<br><br>and other relevant standards such as the<br><br>UN Women’s Empowerment Principles,<br><br>UNICEF’s Children’s Rights and Business<br><br>Principles and the UN International<br><br>Convention on the Protection of the<br><br>Rights of All Migrant Workers and<br><br>Members of Their Families.<br><br>Our Human Rights Policy is a cornerstone<br><br>of the ESG strategy; and sets out ASML’s<br><br>roadmap and initiatives toward effectively<br><br>and responsibly managing areas of<br><br>human rights impacts in the ecosystem<br><br>where ASML operates.
Read more in Strategic report – Corporate<br><br>conduct – Respecting human rights

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	263
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: How we’re managing (continued)

Levers for action

Talent attraction, employee engagement

and retention

Ensuring an outstanding employee

experience contributes to attracting and

retaining talent. To us, employee

experience means the sum of all

experiences an employee gains through

interactions with us at each stage of the

employee life cycle – from attraction and

onboarding, to personal development, to

exit.

We focus on employer branding and

employee engagement (including talent

attraction and retention), learning and

development (including onboarding), and

labor practices such as fair remuneration,

labor conditions, and health and well-

being.

Employer branding

As top-tier talent selects their employer of

choice, a strong value proposition is

important for us. To track effectiveness, we

measure the employer preferences of our

target audiences in the main locations we

operate in. The employer brand rankings

provide us with key insights about priority

target groups, which we use to improve the

candidate experience and rapidly hire top

talent.

Employee engagement

Employee engagement depends on a wide

variety of factors such as well-being,

onboarding experience, learning and

development, D&I, labor practices and

leadership. The overall impact of these

programs is measured by our annual

employee engagement survey – a crucial

tool for collecting and measuring employee

feedback, providing insights that enable us

to improve the employee experience and

refine our policies.

Employee retention

Employee retention is important for

maintaining knowledge, team stability and

efficiency. It greatly depends on the success

of our activities on a wide variety of factors,

as well as external factors in the job market.

We recognize that when employees leave it

is an opportunity to bring in new talent and

enhance existing talent. We therefore strive

for a healthy attrition rate (percentage of

employees leaving the company) and track

and monitor this.

Read more on how we engage with our employees

in Sustainability statements – Social – Attractive

workplace for all – How we're managing – Process

for engaging

Learning and development

We are committed to providing employees

with the right knowledge, expertise, skills

and competencies to maintain technological

leadership and keep up with the pace of

innovation.

The ASML Academy unites all learning and

knowledge management within ASML,

enabling employees to easily acquire the

knowledge, skills and expertise they need to

perform well in their roles. We enable on-the-

job learning and knowledge management,

guided by the 70:20:10 approach for learning:

70% on-the-job learning, 20% coaching and

10% training courses.

We monitor the effectiveness of our learning

and knowledge management approach by

tracking employee feedback, which is

captured in our Global Learning Dashboard,

together with additional performance

indicators (such as the number of training

hours), to monitor the overall adoption,

quality and impact of our learning programs

and support continuous improvement.

We encourage our employees to take

responsibility for their own personal

development and pursue their career

ambitions, offering tailor-made development

opportunities and 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	264
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: How we’re managing (continued)

Levers for action

The annual cycle for performance

management at ASML (Develop & Perform)

is characterized by these key moments in

the year:

Goal setting – Creating clarity and alignment

for the year ahead based on team goals,

individual goals and development items

aligned to ASML values. These are captured

in a development plan which also includes

longer-term career development ambitions.

Development conversations –

Recommended twice a year, with the

opportunity to provide and discuss feedback,

progress, behavior and recognition. These look

forward at development and career ambitions,

identifying actions and next steps to foster

continuous growth.

End-Year Summary – Recognition and

reward of individual contribution and growth

and sharing the performance rating.

To come to a balanced performance rating,

managers consider the extent to which the

employee meets expectations regarding job

responsibilities – achievements in their job,

goals – achievements on team and individual

goals; and behavior – in line with ASML

values (employees) and Leadership@ASML

(people managers).

We monitor the effectiveness of our Develop

& Perform approach by tracking a set of

performance indicators including the

percentage of employees with a

performance rating and the percentage of

employees that have defined at least one

development item.

Diversity and inclusion

We are dedicated to building a safe and

inclusive environment for our workers where

everyone feels valued and respected, and

can fully contribute. Unique and diverse

teams are key to our success, driving

innovation and accelerating creativity within

our business.

We are committed to treating everyone fairly

and equally, to being an equal opportunity

employer, and to cultivating a diverse and

inclusive 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 with special needs, including

neurodiversity and workers with disabilities,

to effectively perform their jobs.

We monitor the effectiveness of our D&I

approach by tracking a set of performance

indicators that cover our ability to attract

women from various backgrounds and

experiences, and our ability to strengthen

representation of women at leadership levels.

Read more in our group Diversity and Inclusion

Policy on asml.com

Occupational health and safety

We strive to provide injury-free and healthy

working conditions for everyone on our

premises by eliminating hazards, reducing

safety risks and preventing occupational ill

health. That includes employees, non-

employee workers, suppliers, customers

and visitors.

While it is impossible to completely

eradicate risk, we work proactively at all

levels to identify potential issues or

concerns in the workplace and develop

measures toward reducing them. This

includes 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 EHS management system,

safety culture and training. We follow legal

and government guidelines and

requirements, and aim to comply with

industry best practices.

We track our targets and actions through

measuring our recordable incident rate.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	265
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: How we’re managing (continued)

Levers for action

Our Environment, Health and Safety (EHS) management system

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 which 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 have continued

to strengthen our Compensation & Benefits

team with the aim 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 remuneration 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.

Work weeks are not to exceed the maximum

set by local laws. In the event that local laws

do not stipulate a maximum, we apply the

International Labor Standards of the ILO and

the RBA norms, including those applicable

to overtime hours. Unless local laws

stipulate otherwise, workweeks should not

be more than 60 hours per week including

overtime, except in an emergency or unusual

situation. The standard weekly working

hours in the locations where we operate is

on average 40 hours. We strive to respect

the right to rest and leisure, including

reasonable working hours.

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. Some performance indicators

include: the number and percentage of

employees covered by collective bargaining

agreements and worker representation, the

percentage of employees paid an adequate

wage, incidents reported via our Speak Up

Service and occupational health and safety

incidents reported via myEHS.

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

region by region and 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

who need assistance with personal and/or

work-related problems that may impact

their job or mental or emotional well-being.

We set a target to measure the

effectiveness of our approach through the

employee engagement survey well-being

score.

Our well-established EHS management

system enables our managers and

employees to effectively integrate EHS

objectives, plans, processes, standards

and behaviors into their daily work –

protecting our people, products and assets,

and the environment. The system is based

on and compliant with the ISO 45001

occupational health and safety standard

and is assessed annually as part of our

internal corporate EHS audit program –

although it is not certified or audited by an

external party. We have implemented the

system worldwide at all our sites and

customer services locations, covering

everyone whose workplace is controlled by

ASML, including all our employees and

other workers not employed by us.

Safety training and engagement

It is standard practice to inform our

employees and anyone else accessing our

premises and customer sites independently

– including contractors and suppliers –

about our safety rules. Training ensures our

people are prepared and informed about

these safety requirements. Mandatory

safety training is defined for different job

roles depending on the risk profile of the

work activities. To improve EHS

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.

Incident reporting

An incident report must be completed by

any ASML employee who is involved in or

observes an unsafe situation or incident.

We record and investigate all incidents and

high-risk unsafe situations to determine the

root cause, and take actions to prevent

them from recurring.

Hazard and risk evaluations

Regular hazard and risk evaluations carried

out by EHS Experts are complemented by

‘Safety Gemba Walks’, where managers

visit employee workplaces, helping to

increase safety performance and

strengthen our safety culture. We take

appropriate action to mitigate these risks

and ensure continuous improvement.

Safety maturity assessment

A safety assessment survey is performed

on our locations worldwide – for technical

roles – once every three years by an

external party.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	266
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: How we’re managing (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.

Read more about the channels of employee

engagement available in Strategic report – Our

business – Engaged stakeholders

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 insights gathered from the

engagement inform our approach.

We utilize our annual employee survey to

assess the effectiveness of our overall

engagement with employees.

Read more about employee engagement and acting

on employee feedback in Sustainability statements –

Social – Attractive workplace for all – Talent

attraction, employee engagement and retention

In addition to the direct channels available,

we also engage in regular dialogue with

workers' representatives, including duly

elected representatives and trade union

representatives.

Duly elected workers' representatives

Works Councils have been established in

the Netherlands and in Berlin, Germany.

In Taiwan and South Korea, employee

representatives have been duly elected in

accordance with Labor Management Council

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 or 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, which provides a clear

communications channel for the feelings of

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

meets annually with the delegation of the

SB. Every month there is a consultative

meeting between the Works Council and the

'Bestuurder' (the ASML executive

responsible for consulting with the Works

Council).

Germany (Berlin), Taiwan and South Korea

Quarterly meetings are held between

employee representatives and local

management representatives.

Collective labor agreements

The Netherlands (with Metalektro)

The Metalektro collective labor agreements

(CLAs) are effective for the industry in which

we operate and applicable to all 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.

We have no indication that we operate in

countries where the freedom of association

and collective bargaining of ASML

employees is restricted. 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 collective bargaining

agreements, labor market developments,

and usage and habits in the specific country.

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

remediation cannot be achieved in this way,

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 our Speak Up Service will

follow the process and protocols of the

Ethics Office

Read more about our process for remediating

matters raised through our Speak Up Service in

Sustainability statements – Governance – ESG

integrated governance – Business ethics and Code

of Conduct

•myEHS incident management: Incidents

follow the process and protocols of the

system

Read more in Sustainability statements – Social –

Attractive workplace for all – Occupational health

and safety

In the event these reporting lines do not

remedy the issue, employees may raise

topics with senior leadership or duly elected

workers' representatives.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	267
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Talent attraction, employee engagement and retention

Our scope

As a basis, the scope of this sub-topic is

related to ASML worldwide.

Read more on the scope of the targets in

Sustainability statements – Social – Attractive

workplace for all – Additional disclosures –

Methodology on targets

Why it matters: Impacts, risks and<br><br>opportunities
For talent attraction, employee<br><br>engagement and retention, we have<br><br>identified the following:
Risks and opportunities:
	Failure to provide fair labor conditions<br><br>could result in unavailability of<br><br>personnel, disengaged employees,<br><br>retention and recruitment challenges
	Failure to foster an equal opportunity<br><br>environment could result in<br><br>unavailability of personnel, disengaged<br><br>employees, and retention and<br><br>recruitment challenges
Read more in Strategic report – Performance and<br><br>risk – Risk			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Attractiveness to talent (employer brand score)	# ranking	NL 1<br><br>US 140<br><br>China 109<br><br>Taiwan n/a	NL top 5<br><br>US top 75<br><br>China top 100<br><br>Taiwan top 5	2025	Work to be done  n
Employee engagement score (three-year rolling<br><br>average)	%	78.9%	Within a 2%<br><br>range of the<br><br>benchmark of top<br><br>25% performing<br><br>companies	2025	On track  ò
	%	-2.1%
Attrition rate1	%	3.8%	< 7%	2025	On track  ò

We have three targets relating to 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

We measure our employer brand in our main

locations: the Netherlands, US, China and

Taiwan.

In the Netherlands, progress on these rankings

has been measured since first reported in 2013,

at which time we ranked 23rd. In 2024, we

ranked number one in the Netherlands for tech

students (Engineering/IT/natural science) and

third for professionals in tech. As part of our

efforts to improve our employer brand, we have

an important ambition to become known to

these students for our jobs in the enabling

functions – such as human resources, finance

and communications.

In the US, we saw a significant increase in

awareness among engineering students,

resulting in a ranking of 140th. Targeted

campaigns as well as extensive media

coverage in both the states in which we

operate, as well as the states we recruit

from, have supported this ranking. The US is

a large and fragmented market in which it is

difficult to reach everyone. We will continue

these awareness activities and the efforts of

this year will accelerate – we are confident in

getting closer to our goal of top 75 in 2025.

We also made a great step up in China this

year, moving to 109th – a strong

achievement, given that China is a large,

widespread country where competition for

talent is fierce. In light of this achievement,

we set a target of top 100 in China by 2025

and are getting closer to achieving this.

In 2024, Universum discontinued its

syndicated report for Taiwan – therefore, we

decided that for this location we will run a

custom Universum survey for both students

and professionals in 2025, which will help us

assess progress against our target. Based

on the previous Taiwan survey run every two

years – in which we ranked fifth, having

increased branding efforts in Taiwan through

the digital ambassador and STEM programs

– we are on track to meet our top five

ambition in Taiwan next year.

By 2025, be within a 2% range of the

benchmark employee engagement score

achieved by the top 25% companies

Our baseline figure, reported in 2019, is

77%.

In 2024, 88.0% of our employees

participated in our annual employee

engagement survey, returning an

engagement score of 78.4%. Our three-year

rolling average of 78.9%, after taking into

account the outcome for 2024 of 78.4%

(2023 of 80.3% and for 2022 of 77.9%), we

measure 2.1% below the top 25% external

global benchmark of 81.0%, reaching our

milestone set for 2024. It indicates that we

are on track to achieving our 2025 target –

being within a 2% range of the top 25% of

companies. 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 2024 survey reaffirmed several strengths

perceived by our employees that we will

continue to deliver on. These strengths

include our strong culture with deeply

embedded values of challenge, collaborate

and care, as well as the belief in teamwork,

ownership and the importance of belonging.

We were pleased to learn that we measured

far above the external average in relation to

our employees feeling proud to work for

ASML, recommending ASML as a great

place to work and voicing their intention to

stay at ASML.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	268
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Talent attraction, employee engagement and retention (continued)

Valuable feedback was also received regarding areas

needing our focus for improvement, including well-

being, inclusion and job enablement, particularly in

relation to defining career development opportunities

and establishing effective processes.

In addition, we aim to improve cross-collaboration,

knowledge-sharing across teams and opportunities for our

employees to participate in sustainability initiatives

(which has already seen a 3% increase compared to

2023). We will continue to raise awareness of our

sustainability initiatives and encouraging employees to

contribute, as well as promote collaboration and

knowledge-sharing.

We also measure the onboarding experience through

pulse surveys. On average, 87% of new colleagues

starting in 2024 indicated they had a positive

experience; while 9% had a neutral experience and 4%

indicated there is room for improvement, particularly in

training and more structured access to relevant

information and tools.

Have an attrition rate of <7% by 2025

Progress on this target has been measured since first

reported at 3.8% in 2020. Our overall attrition rate1 in

2024 was 3.8%1 – well within our target range and below

the industry average in every country in which we

operate. Maintaining our attrition by 2025 will also

depend on external factors in the job market.

1.Our definition and calculation of the attrition rate target differs from

the ‘employee turnover rate’ metric in accordance with the ESRS.

Read more about these differences in Sustainability statements –

Social – Attractive workplace for all – Additional disclosures –

Methodology on targets

Our actions and resources

Engaging with potential employees to raise

awareness of career opportunities at ASML

Extensive employer branding activities are used to

increase the consideration of ASML as an attractive

employer for technical profiles, while also seeking to

increase the inflow of women. Every year we run one

employer brand awareness campaign, as well as

campaigns for critical competencies for our most

difficult-to-hire areas, such as software.

Our branding includes key information on specific

attributes we are known for (or not) and which appeal to

this audience – such as well-being, innovation, and

learning and development – helping us provide the right

message and information to the right people.

Branding activities and survey insights are used to

inform each stage of the recruitment funnel (awareness,

consideration, desire and application).

We organize global and regional promotional events for

both students and professionals, many of which are a

part of our ongoing programs – including career events,

PhD excursions, internship and graduate projects, and

summer schools. STEM students are a key target group,

as well as women (linked to our target to increase the

inflow of women at all job grades).

In 2024, our key actions to engage with potential

employees included:

•Identifying critical competencies that are both

essential for ASML success and scarce on the labor

market. To engage with experienced professionals, we

joined and hosted targeted events – for example,

engaging with software developers.

•Maintaining our relationships with universities and

colleges in Europe, US and Asia to support the

education of future engineers, scientists and

technicians and hosting students at our locations to

showcase technology and company culture and offer

the opportunity to meet colleagues. In 2024, students

from Purdue University Semiconductor courses visited

our Veldhoven office, and students from National

Cheng Kung University (NCKU) and National Taiwan

University (NTU) visited our Tainan factory in Taiwan.

•Hosting 1,120 interns (2023: 1,132) in our locations in

Europe, US and Asia and offering 40 technology

scholarships (annually).

•Hosting four masterclasses at our headquarters – two

for PhD graduates and two for Masters graduates – to

engage with top talent for our R&D organization. One

of these masterclasses was dedicated to female

candidates.

•Summer and winter schools for students from Korea

and Taiwan, together with Eindhoven University of

Technology.

•Internal and external events and campaigns with a

focus on women with technical profiles, for leaders

and technical experts – for example, at European

Women in Tech in 2024, where we hosted a panel to

inspire women.

•Digital campaigns via our social media channels

focusing on technical professionals. In 2024, our ‘Feel

That You Belong’ campaign, sharing the stories of real

people, included both women and men working in

technical roles within ASML. We applied this approach

in each country, targeting female-focused channels

and events. For example, in the US, we use

Fairygodboss and chair inclusion panels at The

Female Quotient.

Read more in Sustainability statements – Social – Innovation

ecosystem – STEM education to feed STEM pipeline for ASML

Read more about our activities to increase proportion of women

working at ASML in Sustainability statements – Social – Attractive

workplace for all – Diversity and inclusion

Maintaining attractive remuneration

We review and adjust our pay scales every year –

aligning with the latest market trends as well as ASML’s

remuneration philosophy and financial affordability. This

ensures we offer competitive remuneration packages to

attract and retain our talent. We use third-party market

benchmarks from selected peer companies defined for

technology professionals in the regions where we

operate, and make changes to our remuneration policies

and levels as necessary.

We assess the effectiveness of this action via our

employee engagement survey, tracking attrition and our

employer brand rankings. The results of the employee

engagement survey and the peer group exercise are

taken into account when taking strategic decisions on

elements such as our employee offering.

Attracting and retaining top talent with a strong

employer value proposition

To attract and retain skilled talent to support our

business growth, we have developed a people strategy

that outlines the beliefs and values we want current and

potential employees to feel, see and experience with us

as an employer – known as Our People Promise. This is

designed to drive engagement and retention in both the

short and long term by:

•Continually supporting and enabling a best-in-class

(potential) employee experience through focused

programs around learning and development, our

commitment to well-being, D&I and strong leadership.

In doing this, we aim to truly drive an employer brand

experience from the inside out.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	269
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Talent attraction, employee engagement and retention (continued)

•Hosting global campaigns and events to showcase our

offerings, with segmented outreach in each of our key

locations over 2022–2025.

•Asked employees to share their stories on why they

join and stay with ASML and supported them as

ambassadors in sharing their stories with their

networks. This credible way of messaging helps us

connect to talent within earned media and drive

awareness and referrals, resulting in a high-quality

source of hires.

•Continued to recognize that employees are our best

advocates and one of the most credible sources of

information about who we are and what we do as a

company. In 2024, we continued our efforts to expand

and optimize the Digital Ambassador program. Over

2,000 employees globally are now sharing curated

content with their local social media networks,

generating millions of impressions and meaningful

interactions throughout each month.

•Held our Internal Career Festival onsite and virtually in

China, Germany, South Korea, the Netherlands, the

US and Taiwan. This global hybrid event aims to retain

talent by driving internal mobility and development.

•Conducting talent surveys in each key location to

measure the effectiveness of our efforts.

•Continuing to monitor and listen to (potential)

employees in an effort to continuously improve their

experience both before and after they join us.

Acting on employee feedback

Employee engagement is an ongoing program with no

specific time horizon. It is one of continuous

improvement – with annual initiatives and actions

addressing specific areas identified in the most recent

employee engagement survey results.

In 2023, we identified that trust in the follow-up to the

survey was low. The main areas for improvement

identified were well-being, inclusion and job enablement,

which informed the actions taken by the end of 2024.

These included:

•Introduction of Employee Engagement Manager role

embedded within teams, tasked with supporting

human resources in survey follow-up. We provided

more tools and templates to help foster conversations

and offer more support within teams to ensure survey

results translate into meaningful and identifiable

actions.

•Using a more structured approach to execute our

actions, and updating reporting lines to increase trust

and ownership. Because our employees are involved

in defining actions and follow-up sessions, they have

greater trust and visibility of the actions taken and our

progress against them.

•Implementation of analysis to identify key drivers of

engagement. In 2023, we identified well-being and D&I

as key drivers, with insights discussed within the

relevant global project teams and used as input for

their programs.

Read more on the specific actions taken within in the current year

in Sustainability statements – Social – Attractive workplace for all –

Diversity and inclusion and Sustainability statements – Social –

Attractive workplace for all – Well-being

•Job enablement through the improvement of facilities,

offices, parking, and learning and development.

We are investigating long-term office capacity

solutions and adding more resting facilities – including

game rooms, natural light, an office gym and yoga

rooms. In line with our business travel target, we are

also providing and encouraging alternative commuting

options and incentives such as carpooling, public

transport, cycling and shuttle buses between sites.

Read more on how we enable our employees in their roles by

providing learning resources and development tools in

Sustainability statements – Social – Attractive workplace for all –

Learning and development

Resources

Significant resources devoted to:

•Engaging with potential employees – primarily

comprising 16 dedicated FTEs for six months of the

year

•Maintaining attractive remuneration – primarily

comprising five dedicated FTEs for three months of

the year

•Attracting and retaining top talent – primarily

comprising 16 dedicated FTEs for six months of the

year

•Acting on employee feedback – primarily comprising

two dedicated FTEs

The total estimated cost of €2.7 million relating to FTEs

is included within the Consolidated financial statements

under Selling, general and administrative costs.

Looking ahead

In 2025, we aim to expand our employer brand measure

to include South Korea. We plan to run customer

surveys among five key universities, and experienced

professionals.

To continue to raise awareness in the US, in 2025 we

will focus on increasing the preference of ASML as an

employer. Activities will include integrated employer

branding campaigns across different channels that

showcase ASML’s unique place in the semiconductor

industry and its pivotal role in the technology

ecosystem.

In 2025, we will expand the use of our client relationship

management (CRM) system, enabled in 2024 to track

and communicate with prospective talent interested in

learning more about our company before, during and

after contact with them at events and other initiatives.

We will focus on developing more strategic partnerships

with the top-tier universities to increase the mutual

benefit of these collaborations. Activities will include the

signing of memorandums of understanding (MoUs) to

make ambitions more explicit and defining key topics to

focus on at each university. We will also expand

student-focused events, such as internships, so

students can gain a better understanding of ASML and

the semiconductor industry.

We also plan to expand our summer and winter schools

to incorporate more countries and more universities

including Leuven University.

And to tap into new talent pools across the markets we

operate in, we are expanding our search for qualified

talent to vocational schools. This will allow us to connect

with people for key roles in manufacturing, enabling

functions and other growing areas of our business.

Following the results of our engagement survey, our

three key themes (inclusion, well-being and job

enablement) remain the same as last year and we

address these through our dedicated programs for these

areas.

Read more on our inclusion, well-being and job enablement focus

areas for 2025 in Sustainability statements – Social – Attractive

workplace for all – Diversity and inclusion, Sustainability

statements – Social – Attractive workplace for all – Well-being and

Sustainability statements – Social – Attractive workplace for all –

Learning and development

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	270
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Learning and development

Our scope

The scope of this sub-topic relates to ASML

worldwide.

Why it matters: Impacts, risks and<br><br>opportunities
For learning and development, we have<br><br>identified the following:
Impacts:
	Impact on employees by facilitating<br><br>professional growth, knowledge and<br><br>skills development, contributing to<br><br>continued employability		Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Employees with at least one development item<br><br>in their development plan	%	81%	80%	2025	On track  ò

We have defined one target for

development:

By 2025, 80% of all employees should

have at least one development item (in

progress) in their development plan

The target was based on our 2023 baseline

figure of 80%. In 2024, 81% of all

employees had at least one development

item in their development plan, as measured

at the end of the goal-setting phase of the

annual cycle (March 2024). This is higher

than our target and reflects the efforts made

to focus on ‘driving your own career’ by

identifying and documenting development

items during the annual goal-setting phase.

In addition, the introduction of role-based

learning journeys makes it easier for

employees to identify the competencies

needed to grow into their desired roles and

include these as development items.

In respect to learning, we have not set a

measurable target in the current year.

We have a robust learning program that

enables our learning ambitions.

Read more on our learning program in Sustainability

statements – Social – Attractive workplace for all –

How we're managing

Our actions and resources

Simplifying the learning journey

Our learning program is one of continuous

improvement. With our growth, we

accordingly need to build on our employees’

competence. With this in mind, our focus is

on reducing the time-to-knowledge – that

is, how long it takes an employee to acquire

the relevant knowledge – and time-to-

competence, which relates to the time taken

to reach true competence in an acquired

skill.

To achieve this, in 2024 we introduced role-

based learning journeys.

A learning journey comprises a curated

collection of educational content, both

formal and informal, that is available to

employees to be used to acquire skills for a

specific role or assist in the setting of a

development plan as part of our Develop &

Perform program.

We have identified 24 key roles, for which

we have built learning journeys with the

purpose of helping our employees to map

their development and to shift more easily

into other roles and to onboard new

employees into their roles at an effective

pace. In the current year, a total of

1,771,544 hours of learning were recorded,

with an average of 41 learning hours

completed per employee. Role-based

learning journeys help employees identify

which learnings are most relevant and

represent the best use of their time.

Depending on the feedback of our

employees, we will improve on the 24

journeys which will further serve as the

foundation for the building of more role-

based journeys in the future.

Empowering employees on their

development journey

Our Develop & Perform program was

initiated in 2022 and we continue to gather

input and feedback for continuous

improvements.

In 2024, we focused on encouraging

employees to take responsibility for their

own development and took steps to more

actively monitor and support them in doing

so.

ASML Academy facilitated the soft skills

needed for an effective Develop & Perform

program through skills-building workshops

and training courses for employees and

managers throughout the year related to

topics such as coaching, development

conversations, and giving and receiving

feedback.

We introduced development and

performance reviews outside the HR&O

system for ASML Berlin GmbH senior

management level and above, with the

expectation to widen this scope to include

levels within middle management in the

following year.

In 2024, we ran a pilot of the Integrated

Talent Management (ITM) program for a

select group of job profiles (approximately

1,500 employees). The ITM program aims to

support our growth by engaging, developing

and retaining employees – by offering the

best possible career development. It

enhances the foundation for our career

development journey by enriching our job

architecture with pre-filled job profiles and

skills, connecting it to skills-based learning

and offering employees a range of

development opportunities – such as

mentorships and career paths based on their

personal profile and interests. The pilot is

meant to test the new concepts and

solutions, collect user feedback and

establish how best to embed it in existing

practices.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	271
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Learning and development (continued)

Resources

Significant resources were devoted to our:

•Develop & Perform program – primarily

comprising three dedicated FTEs

•Learning program – primarily comprising

87 dedicated FTEs

The total estimated cost of €12.7 million

relating to FTEs is included within the

Consolidated financial statements under

Selling, general and administrative costs.

Setting up new starters for success
Properly onboarding new employees is<br><br>critical for our long-term success.<br><br>In 2024, we implemented an ASML-wide<br><br>onboarding approach to ensure a uniform<br><br>quality in the onboarding experience and to<br><br>reduce time-to-competence, as well as<br><br>deploying an ASML-wide knowledge<br><br>transition solution to ensure critical<br><br>knowledge does not leave the company<br><br>when employees move on.<br><br>We also launched a new intranet – a<br><br>personalized digital hub with access to<br><br>information and services, where all<br><br>employees can connect, communicate and<br><br>find knowledge.		Looking ahead
---

Our key efforts for learning in 2025 include:

•Developing a skills management

framework to connect common skills and

capabilities across different functions,

equipping us for future growth and helping

employees understand how their skills can

translate into roles throughout ASML.

•We will expand learning journeys to further

roles identified in 2025 and improve the

quality of the journeys introduced in 2024

based on feedback.

Our key efforts for development in 2025

include:

•Empowering employees to take charge of

their own growth through an expanded

skills-building initiative, ‘Drive Your Own

Career’. This will promote the use of

learning journeys to inform employee

development plans within the Develop &

Perform cycle.

•Implementing the ITM program globally.

Based on the results of the pilot in 2024, a

roll-out strategy for the whole of ASML will

be developed.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	272
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Diversity and inclusion

Our scope

As a basis, the scope of this sub-topic is

related to ASML worldwide.

Why it matters: Impacts, risks and<br><br>opportunities
For D&I we have identified the following:
Impacts:
	Impact on employees by providing<br><br>equal treatment and opportunities for<br><br>all
Risks & opportunities:
	Failure to foster an equal opportunity<br><br>environment could result in<br><br>unavailability of personnel, disengaged<br><br>employees, and retention and<br><br>recruitment challenges
Read more in Strategic report – Performance and<br><br>risk – Risk

ASML presents in this Annual Report its diversity and

inclusion policies and targets for, and progress on

achieving, gender diversity in accordance with Dutch

law and its Diversity and Inclusion policy adopted by the

BoM pursuant to requirements of Dutch law. ASML has

become aware of US executive order 14173 (the “EO”)

signed in January 2025, under which the US Office of

Federal Contract Compliance Programs must, among

other things, immediately cease promoting diversity and

allowing or encouraging US federal contractors and

subcontractors to engage in workforce balancing based

on race, color, sex, sexual preference, religion, or

national origin. As a company with a dual listing on

Euronext Amsterdam and Nasdaq, ASML is currently

reviewing the implications of the EO. These targets and

policy will not apply to ASML’s US employees to the

extent this would conflict with the EO or other

applicable law, regulation or orders.

| Targets and performance | | --- || Performance indicator | Unit | 2024 | Target | Target date | Status | | --- | --- | --- | --- | --- | --- | | Gender diversity – % inflow of women | % | 26% | 24% | 2025 | On track  ò | | Gender diversity – % inflow of women to job<br><br>grade 9+ | % | 30% | 24% | 2025 | On track  ò | | Gender diversity – % inflow of women to job<br><br>grade 13+ | % | 18% | 20% | 2024 | Off track  p | | Gender diversity – % representation of women<br><br>in job grade 13+ | % | 12% | 12% | 2024 | On track  ò | | Inclusion score (three-year rolling average) | % | 82.4% | Within a 3%<br><br>range of the top<br><br>25% of<br><br>performing<br><br>companies | 2024 | On track  ò | | | % | 0.0% | | | |

We have five targets relating to Diversity and

Inclusion (D&I):

Achieve 24% inflow of women (all job

grades) by 2025

Our baseline figure, reported in 2022, is

24%. In 2024 there was a 26% inflow of

women, which reflects we are on track to

achieve our 2025 target.

Achieve 24% inflow (external hires only)

of women to middle management and

above (job grades 9+) by 2025

Our baseline figure, reported in 2023, is

25%. In 2024 there was a 30% inflow of

women to middle management roles and

above, which reflects we are on track to

achieve our 2025 target.

Achieve 20% inflow (external hires and

internal promotions) of women to senior

leadership roles (job grades 13+) by 2024

Our baseline figure, reported in 2021, is

12%. In 2024 there was a 18% inflow of

women to senior leadership roles, which

reflects that we did not achieve our target.

This target was set to supplement our

representation target of 12% women in

senior leadership roles. Despite not reaching

20% inflow by 2024, this inflow target

objective was successful in helping us reach

our 12% representation of women in senior

leadership roles this year – which plays a

pivotal role in our commitment to D&I.

We are highly motivated to see more women

pursuing careers in engineering and science

to further diversify the workforce at the heart

of ASML. This requires a variety of

approaches, and the highly specialized

nature of our work means it will be a long-

term process. We acknowledge that the

global science, technology, engineering and

math (STEM) talent pool is sparsely

populated with women. At the same time,

most of our job positions are STEM-related.

Therefore, we continue to take a

multifaceted approach to our women inflow,

which is crucial if we are to achieve our

inflow targets.

Achieve 12% representation of women in

senior leadership roles (job grades 13+)

by 2024

Our baseline figure, reported in 2021, is 8%.

In 2024 we achieved our target of 12%

representation of women in senior

leadership roles.

Having achieved our target set for 2024, we

want to continue with our ambition to

increase representation of women in senior

leadership roles after 2024. Therefore, we

have set a target of 14% representation of

women in senior leadership roles (job grade

13+) by 2026.

Achieving our ambition will require a

significant inflow of women throughout our

entire leadership pipeline, starting with

middle management and navigating wider

challenges relating to women representation

within talent pools themselves.

Read more about gender diversity in the Supervisory

Board in Corporate governance – Corporate

governance – Other Board-related matters

By 2024, be within a 3% range of the

benchmark inclusion score achieved by

the top 25% companies.

This D&I target is measured through annual

employee engagement survey results.

Our baseline figure, reported in 2021, is

83%. In 2024 our three-year rolling average

inclusion score was 82.4% being aligned

with the benchmark of the top 25% of top-

performing global companies (82.4%).

As awareness of D&I grows among

employees and expectations of our leaders

increase, we anticipate fluctuations in our

inclusion score over time. A deep dive

analysis into our inclusion score revealed our

employees trust and feel safe to openly

share their views and opinions. We continue

to highlight the importance and benefits of

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	273
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Diversity and inclusion (continued)

diversity and inclusion as we build an

environment where everyone can succeed to

their full potential, no matter who they are.

Our actions and resources

Building our diversity and inclusion

program on employee feedback

D&I strategy at ASML is led by the Global

Diversity and Inclusion Council (GDIC).

At the time of working on our D&I strategy in

2023, some concerns were raised about D&I

at ASML – sparking the need for an honest

company response. This included listening

sessions to gather feedback from women to

understand the challenges of working here –

initially over 300 in Veldhoven, plus further

sessions across the company – and the

formation of a program team to create

solutions to address the issues, with

accountability to the GDIC.

The GDIC used further insights from existing

employee engagement channels including

the employee engagement survey (inclusion

score), to inform a holistic D&I program

covering all areas of diversity, including age,

race, color, religion, gender, sexual

orientation, neurodiversity and workers with

disabilities. The program contains 14 D&I-

related projects, each of which is sponsored

by a senior leader.

In 2024, focus was placed on the following

key projects:

Building a foundation of D&I awareness

We wanted to establish an understanding

and lay the groundwork to position D&I as a

global priority, elevating awareness and

setting a solid foundation for inclusion.

Activities in 2024 included:

•Training and development: Facilitating

tailored training on inclusion such as

'Choose Inclusion', 'Ignite Inclusion' and

'Inclusive Leadership' programs. 30% of

our leaders, 50% of our HR&O and Ethics

teams and 30% of all employees received

inclusion training by the end of 2024.

•Executive sponsorship: Reverse

mentoring and resources for senior

leadership, including tools for managers to

jumpstart conversations on inclusion.

•D&I dashboards: Launched to all people

managers to help them understand their

organization's demographics and

analyzing the impact of people processes

to inform longer-term strategies.

Supporting women to reach leadership

roles through development opportunities

To further strengthen our efforts to support

the development of women, we introduced

new programs in 2024 focused on skills

development and visibility for female talent.

These included:

•Women’s leadership program: Provided for

64 women, 93% of whom reported a

positive change in attitude and mindset, as

well as increased confidence to apply

learnings from the program.

•Sponsorship program for women to

increase representation in the senior

leadership pipeline: Provided exposure

and opportunity to 12 participants from

three different regions.

•Reverse-mentoring program to enhance

senior leaders’ diversity and intercultural

quotient through engagement with

employees: Introduced first cohort for

women and senior leaders.

Workplace harassment

In a predominantly male industry, coupled

with our culturally diverse workforce

representing 148 nationalities, there exists

a potential risk of workplace harassment.

We continuously work to address this risk.

Read more on our actions to reduce workplace

harassment in Sustainability statements –

Governance – ESG integrated governance –

Business ethics and Code of Conduct and Strategic

report – Corporate conduct – Respecting human

rights

Resources

Significant resources devoted to our D&I

program primarily comprise 10 FTEs. The

total estimated cost of €1.4 million relating

to FTEs is included within the Consolidated

financial statements under Selling, general

and administrative costs.

Looking ahead

In 2025 our goal is to continue the actions

started in 2024, including:

•Strengthening inclusive behaviors and

leadership via the continuation of the Ignite

Inclusion and Inclusive Leadership

programs, and programs for women leaders

to build an environment where everyone

feels valued, respected and can fully

contribute.

•Piloting a voluntary self-identification project

to encourage ASML employees to voluntarily

self-identify against a range of diversity

demographics.

•Launching an allyship program. This aims

to facilitate advice, skills and tools for

ASML colleagues to align as allies.

•Focus efforts in preparing for the EU Pay

Transparency directive going live in 2026.

•Developing D&I insights solutions to

support forecasting, scenario analysis and

identification of improvement areas.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	274
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Occupational health and safety

Our scope

The scope of this sub-topic and target is

worldwide – at all ASML sites and customer

services locations. It covers the

occupational health and safety of everyone

whose workplace is controlled by ASML,

including all our employees and other

workers not employed by us.

Why it matters: Impacts, risks and<br><br>opportunities
For occupational health and safety, we<br><br>have identified the following:
Impacts:
	Failure to manage occupational health<br><br>and safety – for example, when<br><br>employees are working with hazardous<br><br>substances and systems
	Failure to effectively manage<br><br>employees’ health and well-being could<br><br>impact their work-life balance and<br><br>mental health
Risks and opportunities:
	Failure to comply with health and<br><br>safety-related regulations or implement<br><br>effective health and safety practices<br><br>could result in liabilities and reputational<br><br>risk
Read more in Strategic report – Performance and<br><br>risk – Risk			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Recordable incident rate1		0.19	0.16	2025	Work to be done n

1.Our definition and calculation of our recordable

incident rate in line with OSHA differs from the 'rate of

employee recordable work-related accidents' metric

in accordance with ESRS.

We have one target relating to Occupational

health and safety:

Achieve a recordable incident rate of 0.16

or below, by 2025

Our baseline figure, reported in 2022, is

0.18.

Our recordable incident rate is in line with

the US Occupational Safety and Health Act

(OSHA) per 100 FTEs a year. In 2024, our

recordable incident rate was 0.191. This is

higher than our desired benchmark of 0.16,

which represents world-class performance.

To achieve our desired benchmark, we

maintain our focus and actions to improve

safety in technology and systems. Building

our culture of safety is a shared

responsibility and we depend on our

employees to prioritize safety protocols in

their day-to-day. In 2025, a safety maturity

assessment will support this.

In 2024, we did not encounter any work-

related fatalities onsite. Regrettably, we

suffered the loss of a long-standing

colleague, who collapsed on ASML premises

in Veldhoven and was taken by ambulance

to hospital where he later passed away. This

incident was not work-related.

Our benchmark compared to OSHA industry

data shows we are below the average

recordable incident rate for the semi-

conductor industry of 1.4.

Read more about these differences in Sustainability

statements – Social – Attractive workplace for all –

Additional disclosures – Methodology on targets

Our actions and resources

Updating our safety training in line with

our latest improvements

In 2024 we developed an improved version

of the EHS fundamentals e-learning module

based on the latest EHS policies and

structures. This must be completed by all

new employees joining ASML. Our EHS

Cleanroom Fundamentals training module is

mandatory, explaining how to enter and stay

safe within our cleanroom environments. Our

EHS Fundamentals training for line

managers focuses on how to be a leader on

safety and comprises three elements: risk

management; enabling teams to work safely;

and following up after incidents.

Implementing safety improvement

roadmaps

In 2024, we continued the deployment of our

EHS improvement roadmaps with a focus on

working-at-height improvements. This has

resulted in collaboration across the business

to align to a company-wide standard. This

standard is in review phase.

Responding to risk areas

A deep-dive analysis of the increase in

incidents in 2023 was carried out. It showed

that the main increase in incidents was in

hand injuries in the Customer Support area.

In response, we developed a specific

awareness program within Customer

Support in 2024, focusing on situational

awareness and caring for others. This

training was rolled out and completed by

managers and employees, showing positive

results.

By continuously assessing and adjusting our

improvement roadmap, we expect to

improve healthy and safe work conditions

and lower the recordable incident rate –

achieving our ambition to reach the next

level of safety maturity by 2025.

Resources

Significant resources devoted to our EHS

primarily comprise 269 FTEs. The total

estimated cost of €37.8 million relating to

these FTEs is included within the

Consolidated financial statements under

Selling, general and administrative costs.

Looking ahead

In 2025, to reduce our recordable incident

rate to achieve our desired benchmark of

0.16, we will continue with the

implementation of our EHS improvement

roadmaps – including a focus on safe

driving, working to prohibit multi-person

calls while driving to improve travel safety,

making the new EHS fundamentals training

module available to all employees, and

deploying specific safety training and rules

with a particular focus on the larger NL

campus.

We will also update our safety maturity

assessment to define the current level based

on the Bradley curve – an independent

method for companies to understand and

benchmark safety culture – and help define

our roadmap for the coming years.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	275
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Labor conditions

Our scope

The scope of this sub-topic is worldwide.

Why it matters: Impacts, risks and<br><br>opportunities
For labor conditions we have identified<br><br>the following:
Impacts:
	Impact on employees through fair labor<br><br>conditions
Risks and opportunities:
	Failure to provide fair labor conditions<br><br>could result in unavailability of<br><br>personnel, disengaged employees,<br><br>retention and recruitment challenges
	Failure to comply with labor law could<br><br>lead to sanctions, financial loss or<br><br>reputational damage
	Read more in Strategic report – Performance<br><br>and risk – Risk		Targets and performance
---

In respect of fair labor conditions we have

not set a measurable target in the current

year. We have robust processes for

engaging with our employees, Works

Councils and unions in setting fair terms and

conditions of employment for all our

employees.

Read more on labor conditions in Sustainability

statements – Social – Attractive workplace for all –

How we're managing

Our risk management process helps to

monitor our compliance with local labor

laws.

Read more on our risk management process in

Strategic report – Performance and risk – Risk –

How we manage risk

We have also incorporated a human rights

due diligence process in support of the

principles laid down in the UNGPs.

Read more in Strategic report – Corporate conduct –

Respecting human rights

Our actions and resources

Renewing our collective bargaining

agreement in NL

In 2024, the Metalektro CLA was renewed,

and came into effect as of June 1, 2024,

valid until December 31, 2025. The CLA

applies to all employees in the Netherlands

in job grades 1 to 11.

Read more on how we engage with unions in

Sustainability statements – Social – Attractive

workplace for all – How we're managing – Process

for engaging

Improving our adequate wage

assessment

To ensure we meet adequate wage

requirements, we review living wage and

minimum wage benchmarks every year in

the countries where we operate and will take

any necessary corrective action. In 2024, we

updated our approach to use the higher of

living wage and minimum wage levels in

each location where we operate, based on

independent third-party benchmarks

sourced from a single non-profit

organization. We continue to mature our

remuneration policies and processes in line

with applicable wage laws and strive to

ensure our employees remuneration is fair

and balanced.

Resources

Significant resources devoted within our

Compensation & Benefits team to the

development and maintenance of attractive

labor conditions comprise 35 FTEs. The total

estimated cost of €4.9 million relating to

these FTEs is included within the

Consolidated financial statements under

Selling, general and administrative costs.

Read more on how we engage employees in

Sustainability statements – Social – Attractive

workplace for all – How we're managing – Process

for engaging

Looking ahead

In 2025, we will focus on preparing for pay

transparency in view of current legislation in

various states in the US, and preparing for

upcoming legislation related to the EU Pay

Transparency Directive and any other

jurisdictions where such legislation might be

enacted.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	276
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Well-being

Our scope

The scope of this sub-topic is worldwide.

Why it matters: Impacts, risks and<br><br>opportunities
For well-being we have identified the<br><br>following:
Impacts:
	Failure to effectively manage<br><br>employees' health and well-being<br><br>could impact their work–life balance<br><br>and mental health		Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Well-being score	%	81%	81%	2024	On track  ò

We have defined one target to help manage

the impact on employee well-being:

In 2024, maintain an overall well-being

score of 81% and no scores on individual

questions within the well-being score

below 75%

This well-being target is measured through

the annual employee engagement survey

results.

Our baseline figure, reported in 2023, is

81%. In 2024, our well-being score of 81%

was on target.

We expected our 2024 target to be a stretch

considering global macroeconomic

circumstances and the state of the

semiconductor industry; however, we

managed to achieve it. On the individual

well-being questions, we were on target with

all but two questions which scored below

75%:

1) The amount of stress in my job is

manageable

2) I generally feel energized at work

The primary challenge we face is

encouraging employees to prioritize well-

being in their daily work and utilize the

available support. In 2024 we introduced

well-being branding focused on integrating

regular recharging and re-energizing

activities into daily routines to promote

work–life balance and stress management.

Through the deep-dive analysis performed

as part of the employee engagement survey

process, we have identified groups of

employees whose well-being scores need

improvement. We will actively encourage

and support these groups to define a well-

being journey that is best suited to their

specific team needs and circumstances.

These well-being journeys will be formally

documented in action plans and monitored

through follow-up sessions in close co-

operation with employee engagement

managers and human resources.

Our actions and resources

Prioritizing employees’ well-being and

mental health

Our 2023 employee engagement survey

highlighted the need for enhanced mental

well-being and stress management,

prompting the following key actions:

•Global Well-being Month (June): We

targeted all employees with initiatives to

raise awareness of and promote well-

being, with an emphasis on mental well-

being, including lectures, webinars,

workshops and sporting activities. Over

200 sessions were held globally, attracting

approximately 8,000 registrations.

•Tailored intervention at team level:

We identified low-scoring teams and

created tailored interventions to address

the specific issues they face in relation to

their well-being.

•World Mental Health Day: We hosted a

full-day event with sessions on a wide

range of mental health-related topics.

The event entailed 16 hours of online

lectures by various thought leaders to

facilitate flexibility, allowing employees

from all time zones to participate, and

employees could select from the program,

those lectures they found most relevant.

1,336 employees participated globally and

recordings were made available to those

who could not attend the live sessions.

•Shorter meetings encouraged:

We developed best practices to reduce

30-minute meetings to 25 minutes, and

60-minute meetings to 50. This allows

employees to incorporate a buffer between

meetings to rehydrate, to rest their eyes

(particularly in relation to virtual meetings),

re-energize and reduce mental fatigue.

•Improving governance and monitoring on

aspects of well-being: We elevated the

status of well-being activities within human

resources, transitioning from an HR&O

program into the core HR&O function. We

created a ‘well-being scorecard’ that

brings together well-being-related data

such as illness absenteeism and attrition

and the usage and rating of well-being

resources, to enable continuous

monitoring and track effectiveness.

•Well-being guidelines for managers:

To enhance the role managers play in the

well-being of their teams, we launched

new masterclasses and guidelines,

supported by a well-being booklet. These

initiatives encourage role-model behavior

and help managers effectively support

their teams and engage in well-being

conversations.

•Well-being ambassadors: We developed a

new structure for our well-being

ambassadors, allowing for various levels

and types of engagement. We now have

over 388 ambassadors helping to promote

well-being across our organization.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	277
u<br><br>n<br><br>t<br><br>e<br><br>e<br><br>ri<br><br>n<br><br>g
---	---	---	---	---
	General disclosures	Environmental	Social	Governance

Attractive workplace for all: Well-being (continued)

•Digital resources: We launched a new

digital well-being platform on our intranet

and introduced new learning resources,

making well-being tools and resources

more accessible.

We expect positive outcomes from these

focus areas, including improved employee

well-being, reflected in higher scores on

well-being questions in the employee

engagement survey, increased usage of

well-being resources, greater participation in

Well-Being Month, and reduced attrition and

illness absenteeism.

Resources

Significant resources devoted to our well-

being program primarily comprise four FTEs.

The total estimated cost of €0.6 million

relating to FTEs is included within the

Consolidated financial statements under

Selling, general and administrative costs.

| Additional well-being activities:<br><br>•Employee sports clubs<br><br>•Volunteering<br><br>•Gift matching<br><br>•Employee networks<br><br>•Coaching<br><br>•Mentoring | | --- || Looking ahead | | --- |

The preliminary 2025 well-being priorities

include:

•In response to the outcomes of the 2024

employee engagement survey deep-dive

analysis, we will focus efforts on

incorporating stress management,

resilience and mental health within our

well-being offering and events planned for

2025. This will include a three-week period

of daily mindfulness practices, a Well-

Being Month and a spotlight on World

Mental Health Day in October. We will

provide further support to leaders through

a leaflet on burnout to help recognize the

signs of burnout and facilitate

conversations about stress and mental

health. We plan to develop initiatives to

empower employees to feel energized at

work.

•Continuing Global Well-Being Month into

2025, mapping well-being touch points

throughout the employee journey,

promoting the use of well-being tools and

further professionalizing our Well-Being

Ambassador network.

•Build strong alignment with the leadership

development team to further integrate

well-being as a topic in our leadership

development programs.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	278
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table

Characteristics of our employees

Topic	Description	Unit	2024
Total number of employees –<br><br>headcount by gender	Male	Headcount	34,454
	Female	Headcount	8,899
	Other	Headcount	38
	Not reported	Headcount	4
	Total employees	Headcount	43,395		Topic	Description	Unit	2024
---	---	---	---
Total number of employees –<br><br>headcount by significant<br><br>employment country	The Netherlands	Headcount	23,194
	Taiwan	Headcount	4,572
	United States	Headcount	8,310		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, 2024)	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	Unit	2024
---	---	---	---
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, 2024)	Total number of payroll and temporary employees reported in the Consolidated financial statements (Note 18)	FTE	44,027
	Less: Temporary employees reported in the Consolidated financial statements (Note 18)  (non-employees as defined by ESRS)	FTE	1,241
	Total number of payroll employees reported in the Consolidated financial statements (Note 18)	FTE	42,786
	Total number of payroll employees reported in the Consolidated financial statements - converted to headcount unit of measure	Headcount	43,395
	Number of employees as defined by ESRS	Headcount	43,395		Topic	Description	Unit	2024
---	---	---	---
Employee turnover (For the period<br><br>January 1, 2024, to December 31, 2024)	Employee turnover	Headcount	1,478
	Employee turnover rate	Percentage	3.5%

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	279
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table (continued)

Collective bargaining coverage and social dialogue

Topic	Description	Unit	2024
Percentage of total employees<br><br>covered by collective bargaining<br><br>agreements	Employees covered by collective bargaining agreements	Percentage	61%		The percentage of its total employees within significant countries within the EEA or significant regions outside the EEA, covered by collective bargaining agreements and/or workers, representatives<br><br>(as of December 31, 2024)				2024
---	---	---	---	---
	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.)1	Workplace<br><br>representation (EEA<br><br>only) (for countries<br><br>with >50 empl.<br><br>representing >10%<br><br>total empl.)
Coverage rate
0–19%
20–39%			Asia
40–59%
60–79%
80–100%		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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	280
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table (continued)

Diversity metrics

Topic	Description	Unit	2024
Gender distribution at top<br><br>management level	Male	Headcount	318
	Female	Headcount	44
	Other	Headcount	1
	Not reported	Headcount	0
	Total employees at top management level	Headcount	363		Topic	Description	Unit	2024
---	---	---	---
Gender distribution at top<br><br>management level	Male	Percentage	88%
	Female	Percentage	12%
	Other	Percentage	—%
	Not reported	Percentage	—%		Topic	Description	Unit	2024
---	---	---	---
Age distribution of employees	under 30 years old	Headcount	8,130
	30–50 years old	Headcount	28,072
	over 50 years old	Headcount	7,193
	Total employees	Headcount	43,395

Adequate wages

100% of our employees are paid an adequate wage within all locations we operate in.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	281
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table (continued)

Training and skills development metrics

Topic	Description	Unit	2024
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	Percentage	94%
	Female	Percentage	93%
	Other	Percentage	76%
	Not reported	Percentage	100%
	Total	Percentage	94%		Topic	Description	Unit	2024
---	---	---	---
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	Percentage	96%
	Female	Percentage	96%
	Other	Percentage	97%
	Not reported	Percentage	100%
	Total	Percentage	96%		Topic	Description	Unit	2024
---	---	---	---
Average number of training hours<br><br>per employee	Average number of training hours per employee	Hours	41		Topic	Description	Unit	2024
---	---	---	---
Average number of training hours<br><br>per employee by gender	Male	Hours	42
	Female	Hours	35
	Other	Hours	9
	Not reported	Hours	60

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	282
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table (continued)

Health and safety metrics

Topic	Description	Unit	2024
Percentage of employees covered<br><br>by our health and safety<br><br>management system	Employees covered by our health and safety management system	Percentage	100%		Topic	Description	Unit	2024
---	---	---	---
Number of work-related fatalities as<br><br>a result of injuries	Employee fatalities as a result of work-related injuries	Count	0
	Non-employee fatalities as a result of work-related injuries	Count	0
	Other worker fatalities onsite as a result of work-related injuries	Count	0		Topic	Description	Unit	2024
---	---	---	---
Total number and rate of employee<br><br>recordable work-related accidents	Employee recordable work-related accidents	Count	77
	Employee recordable work-related accidents	Rate	1.11

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	283
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Metrics table (continued)

Remuneration metrics (pay gap and total remuneration)

Topic	Description	Unit	2024
Gender pay gap	Gender pay gap	Percentage	10%

In 2024, we calculated 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. We arrived at an average hourly pay gap of 10.2%. A comparison to previous pay gap reporting under GRI is not available due to the substantial differences in methodology and underlying data

required in accordance with ESRS. Read more in Sustainability statements – Social – Attractive workplace for all – Additional disclosures

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.

One main driver of our gender pay gap is 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% men, 21%

women) with the highest proportion in senior management (88% men, 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 therefore 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. We have also set targets to increase the representation of female employees overall and in

leadership positions specifically. Read more about our targets and actions set for the inflow of women in all roles and female representation in senior leadership roles in Sustainability statements – Social – Attractive workplace for all – Diversity and inclusion

Additionally, we commit to further evaluate and assess pay and to consider objective factors that can impact an employee’s pay, to ensure that no real pay equity issues are present at ASML. We aim to close any unjustified pay

differences between men and women, adhering to local legislation at a minimum. Specifically, we are committed to ensuring we are ready to comply with the EU Pay Transparency Directive going live in July, 2026 and work is underway

to support our readiness for this.

Topic	Description	Unit	2024
Annual total remuneration ratio	Annual total remuneration ratio	Ratio	43

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. 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 reflective of

external market trends across the world. Read more about how we are maintaining attractive remuneration in Sustainability statements – Social – Attractive workplace for all –Talent attraction, employee engagement and retention

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	284
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Additional disclosures

Methodology on targets

In this section, we elaborate on the methodology

and insights used in formulating our targets.

Our targets disclosed in this chapter, excluding

long-term incentive indicators, are set by the

Chief Human Resources Officer (CHRO) in line

with the recommendation of the Human

Resources and Organization (HR&O) leadership

team taking into account insights gathered from

employees and/or employee representatives.

Progress against all targets are monitored

regularly in leadership meetings to ensure our

efforts are effective in reaching our ambitions.

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 in the main

locations where we operate – the Netherlands,

the US, China and Taiwan – monitoring 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, a custom Universum

survey for both students and professionals will be

conducted in 2025 – which will help us to obtain

comparable data.

Targets are monitored and are adjusted based on

discussion with Universum and our regional

teams, as to what is feasible, as well as through

benchmarking against competitor companies in

each market. For each stage of the funnel

(awareness, consideration, desire and application)

the survey outcomes are used to determine what

to focus on in terms of employer brand strategy

and communications for the upcoming period and

whether target levels should be recalibrated.

By 2025, be within a 2% range of the benchmark

employee engagement score achieved by the top 25%

companies

Every year we ask employees to complete our

employee engagement survey. We use a

validated survey from an external provider. The

employee engagement score is derived from a

subset of five questions in the survey.

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 engagement

score target for 2025 is to be within a two

percentage point range of the top 25% performing

companies benchmark. The benchmark is based

on the rolling averages for three years of the 75th-

percentile favorable scores relating to

engagement. In 2024, we updated our

methodology from measuring our performance

based on the survey score for one year (the

survey conducted in the reporting period), to a

three-year rolling average (using the scores

achieved in the survey conducted in the reporting

period and the two immediately preceding years).

This was implemented to be consistent and

comparable with the basis of the top 25%

performing companies benchmark.

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.

Note that the scope and calculation basis for this

approved target differs from the ESRS required

‘turnover’ metric.

The ESRS ‘turnover' metric is based on the

number of employees who leave voluntarily or

due to dismissal, retirement or death in service

during the reporting period in headcount. This

excludes employees that leave as a result of

fixed-term contracts (temporary contracts)

reaching the agreed end of contract, whereas our

attrition target takes into account all leavers in

FTE.

Learning and development

By 2025, 80% of all employees should have at least one

item (in progress) in their development plan

This target covers employees who have at least

one development item that has a ‘last updated’

within the past 12 months, divided by the number

of employees. Measurement is taken at the end of

the annual Develop & Perform cycle (March).

The scope of this target covers all employees

excluding ASML Berlin GmbH.

This target is set based on current performance

and the ambition to improve, considering what is

feasible – given that new hires generally need

some time to define development goals.

Diversity and inclusion

Achieve 24% inflow of women (all job grades) by 2025

At the time of setting the target, the baseline

scope was defined as all new-hire women

employees (including re-hires) that have joined

ASML during the reporting year, excluding ASML

Berlin GmbH. This does not include internal

moves or transfers, nor does it include non-

employees converting to employees.

From 2024 onward, we report on all employees,

including ASML Berlin GmbH employees.

The 2024 inflow determined on the baseline

scope, excluding ASML Berlin GmbH, results in

an inflow of 27%.

Current-year reported figures are determined as a

percentage of all female employees who joined

ASML, compared to the total number of joiners

during the reporting period in FTE.

Achieve 24% inflow (external hires only) of women to

middle management and over (job grades 9+) by 2025

At the time of setting the target, the baseline

scope was defined as all new-hire women

employees (including re-hires) that have joined

ASML in middle management roles and above

during the reporting year, excluding ASML Berlin

GmbH. This does not include internal moves or

transfers, nor does it include non-employees

converting to employees.

From 2024 onward, we report on all employees,

including ASML Berlin GmbH employees.

The 2024 inflow determined on the baseline

scope, excluding ASML Berlin GmbH, results in

an inflow of 31%.

Current-year reported figures are determined as a

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.

Achieve 20% inflow (external hires and internal

promotions) of women to senior leadership roles (job

grades 13+) by 2024

At the time of setting the target, the baseline

scope was defined as all new-hire women

employees (including re-hires) that have joined

ASML or have been promoted into senior

leadership roles during the reporting year,

excluding ASML Berlin GmbH. This does not

include internal moves or transfers, nor does it

include non-employees converting to employees.

From 2024 onward, we report on all employees,

including ASML Berlin GmbH employees.

The 2024 inflow determined on the baseline

scope, excluding ASML Berlin GmbH, results in

an inflow of 18%.

Current-year reported figures are determined as a

percentage of female employees who joined

ASML in job grades 13+ or were promoted into

job grades 13+, compared to the total number of

joiners in job grades 13+ including promotions

into job grades 13+ during the current reporting

period in headcount.

Achieve 12% representation of women in senior

leadership roles (job grades 13+) by 2024

At the time of setting the target, the baseline

scope was defined as all employees and the 'N1-

conversion' category of non-employees,

excluding ASML Berlin GmbH.

From 2024 onward, we report on all employees,

including ASML Berlin GmbH employees.

The 2024 representation target determined on the

baseline scope, excluding ASML Berlin GmbH,

results in a representation of 13%.

Current-year reported figures are determined as a

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.

The scope and calculation basis for this target

differs from the ESRS required 'gender

distribution at top management' metric. The

ESRS metric is reported using headcount and

excludes 'N1-conversion' category of non-

employees.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	285
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Additional disclosures (continued)

By 2024, be within a 3% range of the benchmark

inclusion score achieved by the top 25% companies

This target is based on our annual employee

engagement survey. The inclusion score is

derived from a subset of eight inclusion related

questions in the survey. The benchmark is based

on the rolling averages for three years of the 75th-

percentile favorable scores relating to inclusion. In

2024, we updated our methodology from

measuring our performance based on the survey

score for one year (the survey conducted in the

reporting period), to a three-year rolling average

(The average of the scores achieved in the survey

conducted in the reporting period and the two

immediately preceding years). This was

implemented to be consistent and comparable

with the basis of the top 25% performing

companies benchmark.

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.

Occupational health and safety

Achieve a recordable incident rate of 0.16 or below, by

2025

This target covers all employees working for

ASML and all people working under our

supervision.

Our recordable incident rate is in line with the

OSHA guidelines – the number of cases that

required more than first aid in a year per 100 FTE.

To benchmark our performance against industry

standards, we use a targeted recordable incident

rate of 0.16 – an industry benchmark for top-class

performance.

This target is set by EHS leadership based on

internal trend analysis of incidents and external

benchmarking of peer industries. Incidents are

reported in myEHS and classified as recordable by

EHS Experts applying the OSHA guidelines.

The scope and calculation basis for the actual

rate measured against the external benchmark

differs from the ESRS required 'rate of recordable

incidents' metric as follows:

•The OSHA definition of ‘work-related’ is

followed for the target, while the ESRS

guidance is followed for the ESRS-reported

metric.

•Both reported recordable work-related injuries

and ill health incidents within the EHS reporting

system are taken into account in the target.

Purely recordable work-related injuries are in

S1-14 ESRS scope for 2024, with ill health

being a phased-in requirement.

•Both employees and the 'N1-conversion'

category of non-employees are taken into

account in the actuals compared to target. Only

employees are in ESRS scope for 2024, with

the non-employee group being a phased-in

requirement.

•In calculating the incident rate in relation to the

target, actual hours worked is estimated based

on average number of contracted hours,

assuming that employees work 2,000 hours a

year (set by OSHA). For ESRS, hours worked is

estimated based on normal or standard hours

of work per location, taking into account paid

vacations, paid public holidays and sick leave.

•In relation to target, the rate is based on the

number of cases per 200,000 hours worked

and for the ESRS metric, the rate is based on

the number of cases per one million hours

worked.

Well-being

In 2024, maintain an overall well-being score of 81%,

and no scores on individual questions within the well-

being score below 75%

This target is based on our annual employee

engagement survey. The well-being score is

derived from a subset of eight well-being related

questions in the survey.

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	286
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Additional disclosures (continued)

Methodology on metrics

General methodology: Scope includes all

employees working in entities in scope of

sustainability reporting and based on data

registered on our employee 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

specified by the employees themselves on our

employee databases.

'Temporary employees' reported under ESRS

differs from that applied for Consolidated financial

statements reporting.

'Temporary employees' reported in the

Consolidated financial statements comprises

contractors or agency placements that meet the

definition of 'non-employee' under ESRS.

'Temporary employees' under ESRS refers to

'payroll employees' as reported in Consolidated

financial statements that have a finite duration

employment contract.

Turnover

Employee turnover is reported based on the

headcount of employees who leave ASML

voluntarily or due to dismissal, retirement or death

in service, thereby excluding termination by way

of reaching the end of the agreed contact

duration.

The rate of employee turnover for the period is

calculated on a headcount basis as a monthly

average across the reporting period.

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 Council or employee representatives have

been duly elected.

The percentage coverage per significant

employment country (within EEA) or region

(outside EEA) is calculated in proportion to the

total number of employees within the country or

region.

S1-9 Diversity metrics

The gender distribution in number and

percentage at top management level has been

determined in relation to ASML's top

management level as defined.

S1-10 Adequate wages

Adequate wage assessment: Annually at the

end of the period for each location where we

operate, ASML's lowest annualized wage paid to

employees is compared to the adequate wage

benchmark.

ASML lowest wage: ASML lowest wage consists

of an annual basic wage at a full-time equivalent

basis and fixed payments that are 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. 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: employees

with a hire date on, or after, October 1, members

of the BoM and employees marked as ineligible

by Human Resources 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.

These percentages are broken down by gender

as per S1-6.

Average number of training hours per

employee and by gender methodology: The

average number of training hours per employee is

based on the number of training hours completed

and registered by employees on our learning

platforms.

The average training hours per employee are

reported by gender as per S1-6.

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 myEHS.

Number of employee fatalities as a result of

recordable work-related injuries: This is based

on the number of recordable work-related injuries

which resulted in death, as reported in myEHS

during the period.

Number of non-employee and other worker

fatalities as a result of recordable work-related

injuries: This is based on the number of

recordable worked-related injuries occurring

onsite which resulted in death, as reported via

myEHS or otherwise to ASML during the period.

Number of recordable work-related injuries by

employees: This is based on the number of

recordable work-related injuries, as reported in

myEHS during the period.

Rate of recordable work-related injuries by

employees: This rate 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 number of hours

actually worked by our employees, we have

estimated the hours worked based on 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 full-time

equivalent 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.

Read more about our STI accrual in Financial

statements – Consolidated 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.

Read more about our LTI calculation in Financial

statements – Consolidated financial statements –

Notes to the Consolidated financial statements – 20.

Share-based compensation

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	287
General disclosures	Environmental	Social	Governance
---	---	---	---

Attractive workplace for all: Additional disclosures (continued)

Pension and other benefits: Consists of both

cash and in-kind benefits including cash

allowances, such as shift allowances 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 employees 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.

Average gross hourly pay level: The gross

hourly pay level is determined by dividing an

employee’s annual remuneration by the number

of full time scheduled hours of that employee for

the location and period.

The average gross hourly pay level of female and

male employees is determined separately.

The data and methodology applied in prior-

periods are not in accordance with ESRS;

therefore, comparatives have not 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 use of a median annual remuneration and

headcount basis 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.

Read more in Corporate governance – 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 excluding employees that have

been with the company for three months or less

as at the end of the period.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	288
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

...for the planet	...for ASML
A responsible value chain is a transparent<br><br>one in which human rights and the<br><br>environment are respected and negative<br><br>impacts are prevented and addressed.<br><br>By working with value chain partners that<br><br>are aligned with our values and committed<br><br>to upholding international human rights and<br><br>environmental standards, we can make a<br><br>positive contribution to society and the<br><br>planet.	Identifying, preventing, mitigating and<br><br>managing impacts and risks across our<br><br>value chain is not something we can do<br><br>alone. Collaboration with our value chain<br><br>partners is essential. Only then can we<br><br>successfully identify, prevent, mitigate and<br><br>manage the impacts and risks that occur<br><br>across our value chain. This includes both<br><br>human rights and environmental impacts –<br><br>ultimately increasing our value chain<br><br>resilience.		Our continuous improvement efforts<br><br>toward a responsible value chain are<br><br>important:
---
...for our customers
Our approach contributes to their environmental due<br><br>diligence and human rights objectives. Our supply<br><br>chain is their supply chain.
...for our employees
Our approach aligns with their expectations regarding<br><br>responsible business conduct.
...for our suppliers
Our approach contributes to risk mitigation for their<br><br>workers, supply chains and businesses.
...for our shareholders
Our approach contributes to investors’ objectives to<br><br>improve long-term sustainability performance and<br><br>minimize business costs.
...for society
Our approach contributes to societal objectives for<br><br>respecting the environment and human rights.
Read more about our double materiality process<br><br>and identified impacts, risks and opportunities for<br><br>this theme in Sustainability statements – General<br><br>disclosures – Impact, risk and opportunity<br><br>management		Our 2024 progress:
---
5,150
Total suppliers
(The Netherlands: 1,600	EMEA (excl. NL): 750<br><br>North America: 1,400	Asia: 1,400)
91%
Responsible Business<br><br>Alliance (RBA) self-<br><br>assessment completed (in %)<br><br>(2025 target: 90%)
100%
Suppliers with overall high<br><br>risk evaluated and follow-up<br><br>agreed (in %)<br><br>(2025 target: 100%)		Why it matters
---

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	289
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: How we’re managing

Our objective
The goods and services we purchase, the<br><br>design choices we make and the products we<br><br>sell are potentially linked to impacts on the<br><br>environment and human rights across our<br><br>value chain. We strive to identify and manage<br><br>adverse impacts to the environment and<br><br>people occurring in our value chain, to prevent<br><br>potential impacts and to mitigate and<br><br>remediate actual impacts when they occur.<br><br>We set out our commitments, principles and<br><br>governance for managing environmental and<br><br>human rights matters across our value chain –<br><br>also referred to as environmental and human<br><br>rights due diligence. This includes how we<br><br>manage environmental and human rights<br><br>matters in relationships with our customers,<br><br>suppliers and other business partners, and<br><br>how we manage environmental and human<br><br>rights matters in decision choices.
	Responsible product design	Responsible supply chain
	Whoever uses materials and<br><br>designs a product takes<br><br>responsibility for managing the<br><br>environmental and human rights<br><br>impacts from the choices made<br><br>throughout all stages of its life<br><br>cycle – from extraction of raw<br><br>materials to end-of-life<br><br>management.	A transparent supply chain in<br><br>which human rights and the<br><br>environment are respected,<br><br>positive contributions are made<br><br>to society and the environment,<br><br>and negative impacts are<br><br>prevented and addressed.
	Responsible product use
	The environment and human<br><br>rights are respected in product<br><br>use, positive contributions are<br><br>made to the environment and<br><br>society, and actors across our<br><br>value chain participate in a<br><br>common effort toward<br><br>preventing and addressing<br><br>impacts related to their products<br><br>and services.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	290
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: How we’re managing (continued)

| Our approach | | --- || Our environmental and human rights due diligence framework | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | We manage our impacts across the<br><br>value chain through implementing our six steps for<br><br>action: | | | | | | | | | | | | | | | | | | | Raw material<br><br>extraction and<br><br>processing | | | Tier n<br><br>supply chain | | | Tier 1<br><br>supply chain | | | Chip<br><br>makers | Device<br><br>makers | | | ICT industry | | | Society | End of life | | | | | | | | | | Use of digital<br><br>technology | | | | | Impact of digital<br><br>technology | | Waste | | | | Raw material<br><br>to parts<br><br>and services | | | Parts<br><br>and services<br><br>to ASML | | | | Semiconductor<br><br>production | Production of<br><br>digital devices | | | | | | | | Extraction<br><br>to raw material | | | | | | | | | | | | | | | | | Potential impacts | | | | | | | | | | | | | | | | | | | | | | Potential negative impacts on<br><br>workers in 3TG (conflict) minerals<br><br>supply chains – including exposure<br><br>to violence, human trafficking,<br><br>forced labor and child labor linked<br><br>to the extraction and processing of<br><br>3TG minerals in conflict-affected<br><br>and high-risk areas. | | | Potential negative impacts on supply<br><br>chain workers, considering inherent<br><br>human rights risks in the countries<br><br>and sectors in which our tier-n<br><br>suppliers operate – including long<br><br>working hours, inadequate wages,<br><br>lack of freedom of association,<br><br>limitations to collective bargaining,<br><br>risks to health and safety, human<br><br>trafficking, forced and child labor. | | | Potential negative impacts on<br><br>workers in our downstream value<br><br>chain, considering inherent human<br><br>rights risks in the technology industry<br><br>– including long working hours,<br><br>inadequate wages, lack of freedom of<br><br>association, limitations to collective<br><br>bargaining, risks to health and safety,<br><br>human trafficking, forced and child<br><br>labor. | | | Potential negative impacts on<br><br>people’s quality of life linked to the<br><br>use of microchip-enabled<br><br>technology – including risks<br><br>resulting from the misuse of<br><br>technology. | | | | Positive impacts on people’s quality of life by<br><br>enabling our customers and other actors across<br><br>our value chain to deliver on the potential of<br><br>technology to positively contribute to society –<br><br>for example, by facilitating accessible<br><br>healthcare and food security. | | |

Our approach is derived from key

international standards, including the OECD

Guidelines for Multinational Enterprises on

Responsible Business Conduct and the UN

Guiding Principles on Business and Human

Rights. Our environmental and human rights

due diligence framework is based on the six

steps as described in the OECD Due

Diligence Guidance for Responsible Business

Conduct, and defines how ASML identifies,

prevents, mitigates and accounts for actual

and potential impacts across its value chain.

We strive to identify, assess and prioritize

the most salient human rights and

environmental risks and impacts across our

value chain, from raw materials extraction to

end of life. 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 are able to identify,

assess and manage impacts and risks.

We have less visibility and influence

regarding impacts that occur 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	291
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: How we’re managing (continued)

Levers for action

Our environmental and human rights due

diligence framework is based on the six

steps as described in the OECD Due

Diligence Guidance for Responsible

Business Conduct.

1. Embed in policies and management

system

We manage our approach toward a

responsible value chain as an integrated

part of our corporate strategy – we have

governance in place to monitor and guide

the organization on our commitments.

We have assigned accountability and

responsibilities for execution across

various levels in the organization.

As a member of the Responsible Business

Alliance (RBA), we have adopted the RBA

Code of Conduct. This is 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 to the

RBA Code of Conduct and to cascade this

requirement to their suppliers. We take a

risk-based approach to including ESG

requirements in supplier contracts and

communicate our expectations to

suppliers via various channels like 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.

Updates are based on our assessment of

new impacts that emerge from these

developments.

2. Assess and prioritize adverse impacts

A transparent value chain is essential to

identify potential and actual adverse impacts

at the earliest stage possible, to prevent

potential impacts and address actual

impacts quickly. Therefore, we are

committed to making our value chain more

transparent.

We regularly identify and assess potential

and actual environmental and human rights

impacts across our value chain, from raw

materials extraction to end of life. 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

In determining the best course of action, we

consider the nature of our involvement and

our leverage in the situation.

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. Situations might occur in which

negative impacts are linked to our operations,

products and services by an actor in the

value chain, while we have not contributed to

those impacts. Responsibility to prevent,

mitigate or remediate these impacts is with

the actor that causes or contributes to it –

however, we may seek ways to take a role in

addressing these impacts, taking into

account our level of influence and ability to

effect change in the situation.

Responsible product design

We realize the design and use of our

products might result in negative impacts

across our value chain. In product design

choices, we consider environmental and

human rights impacts that may occur in the

supply chain or in the downstream value

chain through use of our products. This

includes, for example, designing products

that are safe for customers’ employees to

work with and considering the impact that

materials may have in the supply chain or

product end-of-life management.

Responsible supply chain and responsible

product use

We conduct third-party due diligence and

collaborate with suppliers, customers and

other value chain actors to identify, prevent

and mitigate potential environmental and

human rights impacts.

We expect third parties to uphold our

standards for respecting the environment

and human rights, and we encourage actors

across the value chain to participate in a

common effort. This includes providing

guidance, support, and training

opportunities for suppliers to help them

improve sustainability performance.

We perform third-party due diligence,

including:

•Risk-based ESG assessment of third

parties prior to onboarding and entering

into a business relationship.

•A contractual requirement for suppliers

to adhere to the RBA Code of Conduct

and risk-based validation of their

compliance.

•Continuous monitoring to assess red

flags and identify areas for follow-up and

improvement, such as establishing

dialogue with a supplier, agreeing on

mitigating or corrective measures,

performing spot-checks or audits, or

validating implementation of agreed

actions.

•Mitigating actions where findings or

increased risks are identified, such as

establishing dialogue with a supplier,

specifying contractual clauses, and

performing spot-checks or audits.

•We support continued engagement with

suppliers and strive for continuous

improvement and remediation where

appropriate. We aim to disengage from a

business relationship only after failed

attempts at mitigation, or where we

deem mitigation not feasible, taking into

account whether terminating a business

relationship would have adverse

environmental or human rights impacts

in itself.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	292
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: How we’re managing (continued)

Levers for action

Our Third-Party Risk Management process

defines requirements for due diligence on

prospective partners as well as during the

business relationship, as an integral part of

our environmental and human rights due

diligence processes.

The RBA Self-Assessment Questionnaire

(SAQ) is an aspect of our third-party due

diligence and is part of continuous

monitoring to ensure suppliers consistently

meet our standards, as specified in the

RBA Code of Conduct. Acknowledgement

of the RBA Code of Conduct is done

through our Long-Term Supplier

Agreements. We expect our higher-risk

suppliers to complete the RBA SAQ each

year to validate their compliance with the

RBA Code of Conduct, and to determine

any potential gaps in relation to its

standards. We review all RBA SAQ results,

evaluate any high-risk findings and

determine the severity of the findings – it is

our policy to discuss all high-risk findings

with the supplier to evaluate the risk and

determine whether an improvement plan is

needed.

Value chain collaborations

We engage in industry-wide collaboration to

implement common standards and practices of

environmental and human rights due diligence.

This includes information-sharing, engaging

with regulators and policymakers on issues,

and collaborating with industry associations

and other stakeholders to address

environmental and human rights matters.

We support educational institutions,

research institutions, startups, scaleups and

ESG platforms and collaborations in solving

key ESG-related challenges through

stimulating and financing research on

breakthrough technologies.

Read more in Sustainability statements – Social –

Innovation ecosystem

4. Track implementation and results

We are constantly improving ways to

monitor and track our environmental and

human rights due diligence processes, with

the purpose of considering whether these

are effectively implemented and whether

they have responded effectively to identified

(potential) human rights impacts – driving

continuous improvement.

For impacts arising from our own operations,

progress is tracked via internal audits,

engagement with workers and workers’

representatives, and impact assessments –

including, for example, analyses of salaries

for gender disparity and life cycle

assessments (LCAs) on environmental

impacts.

For impacts arising in the supply chain, we

track progress via SAQs of suppliers, our

third-party risk management process and

RBA audits (including tracking progress on

corrective action plans).

For actual impacts identified via our

grievance mechanism (Speak Up Service) –

or other channels like the National Contact

Points for the OECD Guidelines for

Multinational Enterprises – follow-up is

tracked via our Speak Up Service.

We periodically review the implementation

progress of our due diligence processes and

outcomes achieved to identify trends and

areas of improvement – the outcomes of

which are communicated with senior

leadership.

5. Communicate impacts and progress

We embrace continuous, open dialogue and

knowledge-sharing for the benefit of all

parties. Effective and meaningful

engagement with stakeholders is a critical

enabler of the execution of our ESG

sustainability strategy. Our stakeholder

engagement approach comprises the

following activities:

•We aim to listen to stakeholders across

the value chain to increase our

understanding of their concerns, needs

and wishes – and we integrate their

feedback in our materiality process to

ensure we work on the issues that matter

most.

•We aim to increase stakeholder

awareness of our strategy and business

priorities, including ESG sustainability

and other relevant information.

•We aim to align and synchronize

relationships with stakeholders to ensure

collaboration toward shared objectives.

•We report publicly on our practices

regarding environmental and human

rights matters in our Annual Report.

Read more in Strategic report – Our business –

Engaged stakeholders

6. Remediate impacted stakeholders

Employees, business partners and any

third party can raise questions and/or

concerns regarding potential Code of

Conduct violations – including

environmental impacts and human rights –

with designated ASML representatives, the

Ethics Office or via our Speak Up Service.

Our Speak Up Service is available not only

for employees but for all affected

stakeholders – such as 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.

Read more in our Speak Up and Non-retaliation

Policy available at asml.com

Why it matters: Impacts, risks and<br><br>opportunities
For responsible product use we have<br><br>identified the following:
Impacts:
	Impacts on human rights considering<br><br>risks inherent to the technology<br><br>industry
	Improved quality of life through<br><br>access to ICT and digital services
	Impacts from potential misuse of<br><br>technology
Risks and opportunities:
	Increased demand for microchip-<br><br>enabled tools and solutions that<br><br>can help society make progress and<br><br>address global challenges
Read more in Strategic report – Performance<br><br>and risk – Risk

Our approach for ‘Responsible product use’

is in development and we will report on this

in the coming years.

Read more about Responsible product design in

Strategic report – Corporate conduct – Product

safety

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	293
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible supply chain

Our scope

Our first focus is on our Tier 1 suppliers, who

are also in the best position to influence their

own supplier base. Our supply chain – which

you can find more details about in the

diagram on the right – covers our three main

regions of Europe, the US and Asia.

There is a difference between our definition

of business-critical, strategically important

suppliers and suppliers in scope of the RBA

SAQ. For the latter category other factors

are applied, as we have a focus that goes

beyond our own company incorporating

environmental factors and human rights.

Why it matters: Impacts, risks and<br><br>opportunities
For responsible supply chain, we have<br><br>identified the following:
Impacts:
	Inadequate or poor working conditions<br><br>in our supply chain
	Lack of access to equal opportunities<br><br>across our value chain
	Forced and child labor in conflict areas
Risks and opportunities:
	Failure to comply with rules and<br><br>regulations regarding conflict minerals
	Disruption in the supply chain due to<br><br>unavailability of workers
Read more in Strategic report – Performance and<br><br>risk – Risk

1,600

suppliers

ASML suppliers

5,150<br><br>Suppliers
€16.0bn<br><br>Total spend

1,400

suppliers

750

suppliers

161

suppliers

21%

of this spend

90%

of this spend

250

suppliers

Business-critical,<br><br>strategically<br><br>important<br><br>suppliers by<br><br>percent spend
Supplier base<br><br>geographic<br><br>split by<br><br>percent spend

1,400

suppliers

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	294
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible supply chain (continued)

| Targets and performance | | --- || Performance indicator | Unit | 2024 | Target | Target date | Status | | --- | --- | --- | --- | --- | --- | | RBA self-assessment completed (in %) | % | 91% | 90% | 2025 | On track ò | | Suppliers with overall high risk evaluated and<br><br>follow-up agreed (in %) | % | 100% | 100% | 2025 | On track ò |

We have set two targets related to the RBA

SAQ:

Achieve 90% of all suppliers in scope of

the RBA SAQ to have completed it by

2025

We have asked a total of 147 in-scope

suppliers to complete the detailed RBA SAQ

in 2024. In general, the RBA SAQ results

show a relatively low risk level in our supply

base, as most of our suppliers operate in

countries which we believe generally have a

strong rule of law.

By the end of 2024, 91% of the suppliers in

scope had completed the RBA SAQ. The

base year for this target is 2020, when 88%

of all suppliers in scope completed the RBA

SAQ. External stakeholders were not

involved in setting our target. Despite

reaching our target percentage we have not

adjusted the percentage as such. The

reason is that we aim to increase the

number of in-scope suppliers each year.

Achieve 100% of our suppliers identified

by the RBA SAQ as having overall high-

risk to be evaluated and follow-up action

agreed by 2025

The RBA process did indicate high risks in

labor, health and safety, environment or

ethics standards for several suppliers.

This year the results of the RBA SAQ

showed an increase in risk levels at the

suppliers in scope, because of a change in

the questionnaire and related scoring. This

results in more diverse scores and

associated risk levels which support us to

focus our follow-up actions. All nine

suppliers with an overall high-risk score

were evaluated and high-risk elements are

all followed up and mitigated. Most were

related to 'environment', e.g. no GHG

reduction goal, and 'health and safety', e.g.

incidents like fire or injuries. Follow-up

actions were targeted at overall high risk

suppliers and suppliers with a forced labor

risk, e.g. no policy, process or knowledge on

forbidden recruitment fee repayment and

other forced labor associated risk factors

like involuntary overtime and use of migrant

workers.

We do not require suppliers to have a formal

environmental/labor management system in

place. All suppliers that were followed up

with were able to show that they have a

policy/procedure in place to ensure

compliance with ethics, labor, health and

safety and environmental requirements or

are planning to do so.

The baseline for this target is 100%. External

stakeholders were not involved in setting our

target.

Elements from RBA SAQ
Element	RBA commitment
Labor	To uphold the human rights of all workers (direct and<br><br>indirect), and to treat them with dignity and respect as<br><br>understood by the international community, including<br><br>the ILO's eight fundamental conventions.
Health and<br><br>safety	To minimize the incidence of work-related injury and<br><br>illness and to ensure a safe and healthy working<br><br>environment. Communication and education are<br><br>essential to identifying and solving health and safety<br><br>issues in the workplace.
Environment	Environmental responsibility is integral to producing<br><br>world-class products and services. Adverse effects on<br><br>the environment, natural resources and community are<br><br>to be minimized while safeguarding the health and<br><br>safety of the public.
Ethics	To meet social responsibilities and to achieve success<br><br>in the industry, the highest standards of ethics should<br><br>be upheld, including but not limited to business<br><br>integrity, anti-bribery and corruption, antitrust and<br><br>competition, protecting privacy.
Members and participants are committed to establishing a management<br><br>system to ensure:
•Compliance with applicable laws, regulations and customer<br><br>requirements<br><br>•Conformance with the code standards<br><br>•Identification and mitigation of operational risks<br><br>•Facilitation of continuous improvement
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	295
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Responsible supply chain (continued)

Tracking our performance
We track our performance on our<br><br>responsible supply chain targets by<br><br>engaging with suppliers via email,<br><br>meetings and dedicated engagement<br><br>sessions to communicate our actions and<br><br>drive progress. We collect feedback from<br><br>suppliers about the potential roadblocks<br><br>or improvements related to these<br><br>initiatives, and we share our experience<br><br>with them.
We currently do not engage directly with<br><br>workers, consumers and end-users or<br><br>affected communities across the value<br><br>chain. As part of the Human Rights<br><br>Saliency Assessment, we conducted<br><br>stakeholder engagement in 2024 with<br><br>legitimate representatives and with<br><br>credible proxies of these stakeholder<br><br>groups.		Conflict minerals
---
Our products contain minerals and metals necessary to the functionality or production<br><br>of our products. Such minerals and metals include tantalum, tungsten, tin and gold.<br><br>These are 3TG minerals, or so-called ‘conflict minerals’. While we do not use a significant<br><br>amount of these in the manufacturing of our products, certain 3TG minerals are<br><br>necessary. Gold, for example, is used in coating critical electronic connectors and tin<br><br>is used for welding electronic components and creating EUV light.<br><br>In our Human Rights Policy we have a section on conflict minerals, for responsible<br><br>sourcing of materials in our supply chain. We support international efforts to ensure the<br><br>mining and trading of 3TG minerals from high-risk locations does not contribute to<br><br>conditions of armed conflict and/or serious human rights abuses.<br><br>We have adopted a series of compliance measures based on the legal requirements and<br><br>guidelines of the five-step framework set out by the OECD Due Diligence Guidance for<br><br>Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. As part<br><br>of our responsible sourcing program, we implement conflict minerals due diligence,<br><br>focusing on five areas: a robust management system; risk identification; risk mitigation;<br><br>industry collaboration with the Responsible Minerals Initiative (RMI); and public reporting.<br><br>Despite our continuous efforts, we are unable to determine the precise origin of the 3TG<br><br>minerals included in all our products.<br><br>This is due to several reasons: 3TG supply chain complexity, the number of tiers of<br><br>suppliers to trace the source, and the limited number of certified conflict-free smelters<br><br>for all conflict minerals. Obtaining correct data from our supply chain is a challenge, and<br><br>we continue to encourage our suppliers to trace the origins of the 3TG minerals within<br><br>their supply chain in accordance with applicable conflict minerals rules and regulations.<br><br>We also request our suppliers to report smelters who are not listed or identified on the<br><br>RMI smelters list to the Responsible Minerals Assurance Process (RMAP).<br><br>In 2023, we increased the supplier scope and emphasis on the importance of delivering<br><br>complete and accurate information. Out of 329 in-scope suppliers, 46 suppliers did not<br><br>provide us with information sufficient to work with. From the remaining 283 suppliers, 58<br><br>indicated that there were no 3TG minerals in the products that they supplied to ASML.<br><br>The remaining in-scope suppliers provided a complete set of information that we used to<br><br>determine the unique smelters in the supply chain (excluding duplicates). We identified<br><br>482 unique smelters in 2023, of which 236 are RMAP conformant (as of May 2024).<br><br>Read more in our Conflict Minerals Report available at asml.com		Our actions and resources
---

Each year, we request that our suppliers

submit the RBA SAQ. This action

contributes to identifying and assessing

impacts, risks and opportunities across the

supply chain (step 2 of our environmental

and human rights due diligence framework

in How we’re managing).

It is our policy to discuss all high-risk

findings with the supplier to evaluate the risk

and determine if an improvement plan is

needed. When the result of the SAQ scores

is high-risk, we request the supplier to

elaborate on their responses and/or answer

follow-up questions. In case the high risk

remains after further evaluation and

clarifications with the suppliers, we work

with the supplier to define an action plan to

close the high-risk areas.

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.

Resources

The resources needed for this action are

included in the Consolidated financial

statements in Selling, general and

administrative costs. They consist of our

annual RBA membership fee and personnel

expenses for the colleagues executing the

activities from our Strategic Sourcing and

Procurement and Risk and Business

Assurance departments. Depending on the

amount of follow-up needed throughout the

year, this ranges from three to four FTEs

with an associated annual cost of

approximately €0.6 million.

One of our key focuses for 2024 has been to

assess suppliers against the sustainability

block of our supplier profile and actively

follow up on gaps. During 2024 we

conducted 107 audits. With respect to the

‘S’ of the ESG program, we will execute on

the expanded due diligence process and use

these learnings and findings to further

update our procurement policies. We will

actively follow up on identified high risks.

Pursuant to the German Supply Chain Due

Diligence Act, we performed a risk analysis

on suppliers in scope and continue to

monitor these as an integral part of our

Human Rights and Responsible Supply

Chain programs.

Looking ahead

Pursuant to the outcomes of our Saliency

Assessment on human rights impacts in the

supply chain, we are further developing

methods for risk identification and

prioritization, further mapping our supply

chains and expanding the scope of suppliers

within RBA monitoring. We are further building

our resources in terms of managing, preventing

and mitigating adverse human rights impacts.

We are strengthening our capabilities regarding

the management of conflict minerals and

responsible minerals sourcing. We will build

on the results of the Saliency Assessment by

further identifying environmental impacts.

The above will assist us in preparing for

implementation of the CSDDD and other

relevant due diligence regulations.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	296
General disclosures	Environmental	Social	Governance
---	---	---	---

Responsible value chain: Additional disclosures

Methodology on targets

Responsible supply chain

Achieve 90% of all suppliers in scope of the RBA SAQ to

have completed it by 2025

We identify suppliers that either have a high

potential risk, because of the services they

provide, the sector they operate in or the country

they operate in, or are material to ASML. Both of

the identified supplier categories are included in

the scope of our RBA SAQ. To determine which

suppliers are potentially high risk, we analyze the

risk of the country of operation and the sector risk

using the RBA assessment platform. Additionally,

we added to our scope specific categories that

have a potential high risk: onsite service providers

and labor agents. To determine which suppliers

are material to ASML and we have leverage over,

we look at spend as a main factor and include the

suppliers (both PR and NPR) that together make

up 80% of our total yearly spend. We also take in

scope the suppliers that together make up 80%

of our product category (PR or NPR) yearly

spend. Lastly, we add those that, on a supplier

group level, together have over a €25 million

spend on an annual basis.

Achieve 100% of our suppliers identified by the RBA

SAQ as having overall high-risk to be evaluated and

follow-up action agreed by 2025

In case of (high-risk) findings, we take mitigating

actions such as obtaining clarifying information,

specifying contractual clauses, performing audits

or setting requirements for a third party to

complete specific training. The scope of this

target is limited to suppliers for which an overall

high-risk is identified in the RBA SAQ.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	297
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem

A thriving, multi-regional innovation ecosystem that helps solve some of humanity’s toughest challenges

Our 2024 progress:
€4.3bn
R&D costs
(2025 target: >€4.0bn)
€1.3m
Value startups and scaleups<br><br>in-kind support		Our focus on collaboration and<br><br>innovation is important:
---
...for our customers
We develop our technology in close collaboration with<br><br>our customers to ensure we build today what they<br><br>need tomorrow.
...for our employees
To maintain our fast pace of innovation and ensure<br><br>long-term success as a company, we need to attract<br><br>and retain the best talent.
...for our suppliers
We do not innovate in isolation – we see ourselves as<br><br>architects and integrators. We trust our supply chain to<br><br>innovate with us and manufacture most system parts<br><br>and modules.
...for our shareholders
Innovation drives our technological leadership,<br><br>long-term success and value creation.
...for society
Digital technologies are some of the most important<br><br>tools to help society make progress and address global<br><br>ESG challenges – for example, related to the United<br><br>Nations Sustainable Development Goals (UN SDGs).
Read more about our double materiality process<br><br>and identified impacts, risks and opportunities for<br><br>this theme in Sustainability statements – General<br><br>disclosures – Impact, risk and opportunity<br><br>management

...for the planet	...for ASML
Sharing our knowledge and expertise helps strengthen<br><br>our regional high-tech ecosystems, particularly around<br><br>our headquarters in Veldhoven, the Netherlands. The<br><br>Brainport Eindhoven region surrounding Veldhoven has<br><br>a competitive edge globally, and we aim to maintain<br><br>this leadership position. Building a strong regional<br><br>foundation benefits our partners and other companies<br><br>and organizations in the region.<br><br>The ESG-focused research, startups and scaleups we<br><br>support, as well as the STEM education we promote,<br><br>help increase the technical talent pool society requires<br><br>to solve some of its key challenges.	As the markets for artificial intelligence (AI), 5G<br><br>connectivity, augmented reality and the internet of<br><br>things (IoT) expand, consumers across the world are<br><br>using ever more powerful and sophisticated devices<br><br>that are increasingly interconnected.<br><br>These developments drive demand for microchips,<br><br>which in turn drives demand for the chipmaking<br><br>systems that produce smaller, faster, cheaper, more<br><br>powerful and more energy-efficient microchips.<br><br>We can only meet this demand by consistently and<br><br>continuously advancing our technology through<br><br>innovation.		Why it matters
---

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	298
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: How we’re managing

Our objective
Our primary objective is to foster innovation<br><br>through collaboration and partnerships –<br><br>where trust serves as the foundation for long-<br><br>term cooperation – to create technological<br><br>solutions that benefit society as a whole.
	ESG innovation
	We aim to have a positive<br><br>impact on local communities<br><br>and society through R&D,<br><br>innovation, knowledge<br><br>management and initiatives that<br><br>support innovative ideas to<br><br>solve key ESG challenges.
	STEM education to feed the<br><br>STEM pipeline for ASML
	Through global university<br><br>partnership programs, hybrid<br><br>teaching, guest lectures,<br><br>curriculum development, work<br><br>study programs and<br><br>scholarships, we help to grow<br><br>our talent pipeline, on both<br><br>vocational and academic levels.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	299
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: How we’re managing (continued)

Our approach

Our experts at ASML are architects and

integrators who work together and in

collaboration 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 across this

ecosystem. 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.

We partner on and invest in STEM initiatives

to educate and empower the next

generation of STEM leaders, helping them to

realize their untapped potential and inspiring

them to begin solving the world's most

pressing issues.

We aim to develop partnerships with key

stakeholders that incentivize knowledge and

innovations that enable the UN SDGs.

We report publicly on key elements of our

ESG-focused innovation approach in our

Sustainability statements.

We have identified the following sub-topics

worldwide:

•ESG innovation

•STEM education to feed the STEM pipeline

for ASML

Read more in Sustainability statements – General

disclosures – Impact, risk and opportunity

management

Levers for action
Collaborating on ESG-focused innovation<br><br>In the context of innovation related to<br><br>ESG topics, we contribute to the<br><br>development of a sustainable innovation<br><br>ecosystem through:<br><br>•ESG-focused research projects<br><br>•Supporting regional deep-tech<br><br>scaleups and startups selected for<br><br>their ambition to contribute to a better,<br><br>more sustainable world<br><br>•ESG-focused platforms and<br><br>collaborations with local, industry and<br><br>global platforms to jointly tackle ESG<br><br>challenges<br><br>Promoting STEM opportunities to feed<br><br>our STEM talent pipeline<br><br>We believe all children should be aware of<br><br>the applications of STEM in their daily<br><br>lives and have access to technical<br><br>education in order to be prepared for an<br><br>increasingly digital future and reach their<br><br>full potential. That is why we invest in<br><br>promoting STEM education.<br><br>We work to build relationships with<br><br>universities and potential talent by<br><br>offering students work exposure and,<br><br>internships, hosting student events,<br><br>teaching assignments for ASML staff,<br><br>participating in career days and joint<br><br>curriculum development.
Read more in Sustainability statements – Social –<br><br>Attractive workplace for all – Talent attraction,<br><br>employee engagement and retention
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	300
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation

Our scope

We stimulate research on breakthrough

technologies that will enable the UN SDGs.

We provide (in-kind) support to ESG-

focused startups, scaleups and tech funds,

such as HighTech XL, DeepTechXL, Make

Next and several venture capital funds,

providing promising startup and scaleup

companies with access to highly qualified

resources, technologies, licenses, supply

chain partners and co-investors. The scope

of our (potential) investments is global.

ESG-focused research is currently focused

on the Van Gogh IMPASTO project.

We continue to build our ESG-focused

platforms, partnerships and collaborations

strategy, develop targets and collaborate

with local, industry and global platforms to

jointly tackle ESG-related challenges, such

as with the Confederation of Netherlands

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

Sustainability Advisory Council and the

Semiconductor Climate Consortium (SCC).

Read more in Strategic report – Our business – How

we innovate

Strategic support platforms for startups and scaleups
Make Next Platform<br><br>We founded the Make Next Platform (MNP) in 2016 to support<br><br>young, innovative, high-tech scaleups, together with Huisman,<br><br>Vanderlande and the non-profit Stichting Technology Rating (STR).<br><br>Thales NL joined as a co-founder in 2019. MNP supports<br><br>emerging high-tech ventures that have moved beyond the startup<br><br>phase and are ready to expand. Through the exchange of best<br><br>practices, business experience and coaching from senior<br><br>corporate experts, MNP partners support scaleup companies to<br><br>become global players by giving them access to their internal and<br><br>external networks.	HighTechXL<br><br>ASML is one of the main shareholders of HighTechXL, together<br><br>with other tech-minded partners such as Philips, research institute<br><br>TNO, Brabantse Ontwikkelings Maatschappij and High Tech<br><br>Campus Eindhoven. Through HighTechXL, we build and accelerate<br><br>impactful startups by combining high-tech entrepreneurial talent<br><br>and relevant technologies from reputable tech partners such as<br><br>ESA, CERN, Fraunhofer, imec and TNO, with the goal of solving<br><br>major global societal challenges. ASML talents join selected<br><br>startups for 30% of their time for a period of three months. They<br><br>define their learning goals and benefit from the development of<br><br>enriched skills and mindsets through this unique entrepreneurial<br><br>experience.<br><br>DeepTechXL<br><br>In 2022, we became a strategic investor and co-initiator in<br><br>DeepTechXL Fund I, a new Dutch deep-tech fund of €85 million as<br><br>a follow-up to HighTechXL.<br><br>Together with other strategic investors and co-initiators – Philips,<br><br>Brabantse Ontwikkelings Maatschappij, TNO, PME Pension Fund<br><br>and Invest-NL – the fund provides deep-tech startups and<br><br>scaleups with access to knowledge, network, technology, licenses<br><br>and business development support.		Why it matters: Impacts, risks and<br><br>opportunities
---	---
For ESG innovation we have identified<br><br>the following:
Impacts:
	Society benefiting from support for<br><br>ESG-focused research, startups,<br><br>scaleups, platforms and collaboration
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	301
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation (continued)

| Targets and performance | | --- || Performance indicator | Unit | 2024 | Target | Target date | Status | | --- | --- | --- | --- | --- | --- | | Number of ESG-focused scaleup companies<br><br>supported (cumulative in numbers) | # | 13 | 14 | 2025 | On track ò | | ESG-focused startups reached star level from total<br><br>startups (in %) | % | 14% | >20% | 2025 | Off track  p | | R&D investments (costs) | € billion | €4.3bn | >€4 billion | 2025 | On track ò |

We have defined three targets in supporting

startups, scaleups and tech funds:

Support 14 ESG-focused scaleup

companies by 2025

In 2024, we provided 5,360 hours of in-kind

support, totaling €1.3 million. In addition to

our prior commitments of over €20 million, in

2024, we committed a further €12.5 million

in financial support.

So far, 13 ESG-focused scaleups have been

supported by the Make Next Platform.

In 2024 we further developed the program

to better suit the needs of the scaleups and

to improve the impact of our support, for

example by adapting our coaching programs

to improve impact.

Achieve more than 20% ESG-focused

startups reaching ‘star level’ by 2025

HighTechXL, as a venture builder and

startup accelerator, has focused since 2000

on its venture-building activity. In 2024, 14%

of startups reached star level – defined as

those accelerated HighTechXL startups

showing a multiple of investment above 10.

The target of 20% of ESG-focused startups

to achieve star level by 2025 is not on track.

Originally, this target was set when

HighTechXL was still a startup accelerator.

However, in 2020, this was transformed into

a venture-building program. We have seen

that it generally takes longer for these newly

established startups to mature. Additionally,

the focus is now on deep tech, which

typically requires a longer time to develop. In

2025, revised targets to align to the updated

program will be discussed.

Achieve more than €4.0 billion in global

R&D invested by 2025

In the context of overall innovation – which

includes ESG-focused research – our goal is

to achieve more than €4.0 billion spent in

global R&D by 2025. In 2024, we invested

€4.3 billion. In the base year 2019, we

invested €2.0 billion in R&D.

Read more in Strategic report – Our business – How

we innovate

For ESG-focused platforms, partnerships

and collaboration, our ambition is to build

the innovation ecosystem with partners –

including industry, knowledge institutes and

contractors. Our focus will be on solving key

ESG challenges defined in the UN SDGs and

where there is clear synergy with ASML.

Solutions should drive real change in

society.

As our ESG sustainability innovation area is

still under development, we are currently

focused on collaborations with local,

industry and global platforms to jointly tackle

ESG challenges.

Our actions and resources

Below are the key activities within the ESG

innovation focus areas.

ESG-focused startups, scaleups and tech

funds

Our key actions are:

•On average, 20 of our experts joining

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 startup and scaleup

teams to help them mature

•Investing (indirectly) in ESG-focused

startups, tech funds and platforms such as

HighTech XL, DeepTechXL and MNP

•Challenging the startup ecosystem with

contests such as the ASML Young Makers

Award

We determine the effectiveness of these

actions by following agreed performance

indicators during the running time of the

projects. Every quarter, the progress of all

actions is tracked and reporting on

indicators is updated.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	302
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation (continued)

ASML Young Makers Award
ASML challenges the startup ecosystem<br><br>with a contest called the ASML Young<br><br>Makers Award (AYMA). It supports<br><br>ambitious students or young entrepreneurs<br><br>who have already started their own<br><br>businesses and are working to make them<br><br>more successful. We initiated this award<br><br>because we too started out as a startup in<br><br>1984 and know from our own experience<br><br>that support is more than welcome in such<br><br>an initial phase.<br><br>The AYMA is given to a promising young<br><br>startup that has integrated innovation and<br><br>sustainability in both product development<br><br>and business operations. Young<br><br>entrepreneurs are given the opportunity to<br><br>present their company and entrepreneurial<br><br>vision at an ASML pitch event, where a<br><br>professional jury (consisting of among<br><br>others ASML and Brainport Eindhoven<br><br>representatives) assesses the finalists of<br><br>the AYMA and questions them on – among<br><br>other things – their passion, vision,<br><br>perseverance and flexibility, as well as the<br><br>viability and sustainability of their<br><br>innovative product.<br><br>From all finalists, the best three candidates<br><br>were selected to pitch on stage during the<br><br>Brainport entrepreneurs award ('Brainport<br><br>Ondernemings Prijs, or BOP), an event<br><br>sponsored by ASML. Held in May 2024,<br><br>this event brought together representatives<br><br>of the innovative and sustainable<br><br>entrepreneurial community in the Brainport<br><br>Eindhoven region.	The AYMA is an honorable recognition, a<br><br>prestigious award that serves as a<br><br>powerful appreciation for innovative<br><br>development, in which sustainability is<br><br>considered a self-evident prerequisite.<br><br>From the three finalists that pitched during<br><br>the 2024 BOP event, the public selected a<br><br>winner that will receive a coaching program<br><br>and guidance from ASML specialists.<br><br>The three finalists were:<br><br>•FononTech – Developed a 3D-printing<br><br>technology that is quite unique and<br><br>provides a lot of benefits for companies<br><br>that work with microchips, especially in<br><br>the final assembly stage.	•Senergetics – Developed a method that<br><br>can prevent problems such as leaks in<br><br>factory pipelines and wasted energy that<br><br>cannot be detected in time using<br><br>traditional methods.<br><br>•TracXon – Developed an advanced and<br><br>sustainable technology for printing<br><br>electronics on foil that strongly reduces<br><br>recycling waste as compared to<br><br>traditional printed circuit board<br><br>technology. Their method is also very<br><br>flexible, allowing each print to be unique.<br><br>During the BOP event, the public selected<br><br>TracXon as the winner.

ESG-focused research

Protecting Van Gogh’s artistic heritage

Vincent van Gogh continues to inspire

millions of people all over the world thanks

to his revolutionary use of light and color.

With our shared links to the Dutch province

of Brabant and Van Gogh’s clear focus on

light and innovation, ASML has always had

an affinity with his work – and we are now

using our expertise to help Van Gogh

Brabant and the Van Gogh Museum (VGM)

to protect his heritage.

In June 2024, we concluded the first phase

of our five-year collaboration with the VGM.

Our IMPASTO project aims to assess the

status of Van Gogh’s masterworks and to

look at methods on how to optimally study

and conserve them. The University of

Amsterdam (UvA), the Rijksdienst voor

Cultureel Erfgoed (RCE) and the Technical

University Eindhoven (TU/e) are active

partners in this collaboration – each bringing

unique skills and competencies.

We have defined and executed against four

main pillars:

•Paint degradation studies (executed

mostly at VGM and RCE): The original

pigments used by Van Gogh are recreated

and the deterioration of the paints studied.

This project will lead to two PhDs

sponsored by ASML

•Measurement tools (executed mostly at

ASML): Several measurement tools are

being developed at ASML to help learn

more about the condition of Van Gogh’s

paintings. An environmental sensor was

made that combined a painting frame with

a large collection of different sensors to

measure conditions such as temperature,

light intensity and humidity. This frame

was hung in the museum for a few months

and a large amount of data was collected,

providing valuable insights for VGM on the

display condition of their paintings and

how these are impacted by day-to-night

changes, seasons, visitor behavior and so

on. The majority of this work is devoted to

the development of the CAS (Condition

Assessment Scanner) tool, fully developed

and built by ASML. The current version

can be put in front of a Van Gogh painting

and will measure with micrometer

resolution its height profile, giving a good

view of its (mechanical) quality. Micro-

fractures can be found before the human

eye can see them, and measurements

before and after a painting is transported

can indicate potential damage inflicted

that is not yet visible to the naked eye. In a

second phase of the project, the CAS tool

will be extended with a sensor that can

make very precise measurements of the

colors of the paints and show where

changes have taken place – for example,

due to degradation over time, or due to

restoration activities such as removal or

replacement of old varnish layers.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	303
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: ESG innovation (continued)

•Digital twin (executed mostly at ASML):

Pillars one and two will deliver large

amounts of data and insights into the

physics and chemistry of a painting, which

we aim to synthesize into a so-called

‘digital twin’ – a computer model

combining all known knowledge of a

painting. This is an invaluable tool to gain

further insights on the status of a painting

and can also help in telling the stories of

Van Gogh’s masterworks. The software

developed for this pillar by ASML is now at

a stage that it can be used by art

conservators – we have made it publicly

available and see a lot of interest from the

scientific art conservation community.

•Data management (executed at VGM):

Since the project will generate enormous

amounts of data, this needs to be handled

well by the owner of that data (VGM). VGM

hired a data steward who will generate the

necessary infrastructure to host and

process a large volume of data on the Van

Gogh paintings (generated with our CAS

tool) for further scientific research – and for

use in the digital twin.

In 2024, based on the success of phase one

of the Van Gogh collaboration, we have

agreed the next phase in this collaboration,

covering the period up to and including

2028.

ESG-focused platforms, partnerships

and collaborations

We are working on our targets and action

plans for 2025.

Resources

A total of €119.7 million has been committed

to enabling ESG innovation, of which €12.5

million has been expensed in 2024 and

reported within the Consolidated financial

statements under Selling, general and

administrative costs. Anticipated future

expenditure amounts to €107.2 million.

Looking ahead

ESG-focused startups, scaleups

and tech funds

In 2025, we continue to identify additional

ecosystem partners to further strengthen

both our regional and global startup

innovation ecosystem. We will develop a

strategy for rolling out our efforts to other

regions where ASML has a presence and

can provide regional in-kind support. These

additional efforts, which are the result of our

growing ambition to create an impact, will

generate a need to adjust our KPIs

accordingly. In 2024, we have started to

update our ESG innovation strategy and in

2025, will discuss more appropriate KPIs

aligned with our augmented objectives.

ESG-focused research

Based on the success of phase one of the

Van Gogh collaboration, we have agreed the

next phase in this collaboration which will

run until 2028. Our collaboration work with

VGM aims to bring the museum toward a

new phase, where science-based research

on Van Gogh’s cultural heritage will become

an integral part of the museum. This will be

established by realizing a dedicated science

lab inside the museum, where visitors can

see science in action through glass walls.

Part of the lab will be the CAS tool that has

been partly realized in phase one of the

collaboration. This CAS tool will be extended

with a second measurement head, enabling

it to handle color measurements, so

conservation scientists can explore paint

degradation at levels invisible to the human

eye. They will also be able to study Van

Gogh's early works made in his ‘Brabant

period’, a vital area that has not yet been

studied extensively. In order to make the

CAS tool usable for non-engineers, the tool

has to be matured and industrialized; this

will also be in scope of the next phase of the

collaboration. Furthermore, the digital twin

will be extended with AI capabilities enabling

the conservation scientists and conservators

to learn much more about Van Gogh’s

artwork, and to tell the stories about his life

and work.

We plan to start other activities in 2025

related to ESG-focused research, where

ASML researchers bring in ideas that will

benefit society.

ESG-focused platforms, partnerships

and collaborations

In 2025, we will continue to develop targets

and participate in ESG platforms,

partnerships and collaborations that jointly

realize projects for selected ESG challenges

in order to achieve our ambition to expand

the innovation ecosystem with industry

peers and knowledge institutes.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	304
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: STEM education to feed the STEM pipeline for ASML

Our scope

We aim to help increase the technical talent

pool that ASML, our suppliers and

customers, and society at large need to

solve some of society's toughest challenges.

STEM students are a key target group for

our talent pipeline, both on vocational and

academic levels. Our talent engagement

efforts are directed at students who are

enrolled in colleges and universities, to

support them to become thriving tech

professionals. Talent Acquisition leads a

talent engagement and university strategy to

support our education ecosystem in the

development of future engineers, scientists

and technicians – including student

programs that combine education with work.

In addition, our Society and Community

Engagement (S&CE) team engage with local

communities at an even earlier stage to

stimulate both boys and girls to gain an

affinity with and interest in STEM.

Read more in Sustainability statements – Social –

Valued partner in our communities – Investing in

STEM education

Targets and performance

There are no specific targets set for this sub-

topic.

Our actions and resources

Below are the key activities within the 'STEM

education' focus area:

Building relationships with future

professionals

In 2024, globally we worked with 103

universities on talent and education

development – offering excursions for

students, internships, PhD events, teaching

assignments for ASML staff, career days

and joint curriculum development.

Read more in Sustainability statements – Social –

Attractive workplace for all – Talent attraction,

employee engagement and retention

Offering hands-on education for local

students

In 2024, we built on the projects started in

2023 – including global university

partnership programs, hybrid teaching,

guest lectures and curriculum development,

work study programs (BBL) and scholarships

– to develop these further and reach more

students. For example, the work–study

program in ASML manufacturing in the

Netherlands has grown to more than 160

students in 2024. For this program, we work

together with Summa College, a local

vocational school in the Brainport Eindhoven

region.

The school takes care of the classes for the

students, while we offer a learning

experience in our factory, guided by an

experienced ASML mentor. Our internship

programs have also grown in most of our

locations – in the US, for example, our

summer internship program has grown from

an intake of 222 in 2023 to 290 in 2024.

Resources

Read more on our FTE resources allocated to STEM

talent attraction in Sustainability statements – Social

– Attractive workplace for all – Talent attraction,

employee engagement and retention

Looking ahead

We are developing our activities with

universities and colleges in more strategic

and long-term partnerships. We make our

contributions explicit by developing

partnership agreements with our most

important partners. In addition, we are

working with our regional ecosystems to

leverage the impact of our investments for a

larger ecosystem – for example, by working

in projects that involve both universities and

vocational schools. By working together with

our educational ecosystem, we support two

goals: we help educate more engineers,

scientists and technicians that are needed

by ASML, our suppliers and customers, and

society at large; and we help students to get

to know us as a potential future employer.

Examples of joint projects are creating

internship positions, supplying guest

lecturers, organizing excursion days and co-

hosting summer schools.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	305
General disclosures	Environmental	Social	Governance
---	---	---	---

Innovation ecosystem: Additional disclosures

Methodology on targets

ESG innovation

Support 14 scaleup companies by 2025 and achieve

more than 20% ESG-focused startups reaching ‘star

level’ by 2025

Support consists of funding provided by ASML to

the scaleup, either through cash contribution or

support from ASML professionals in hours, with

ASML talent joining selected startups and/or

scaleups for 30% of their time for a period of

three months. Tracking is done by the

Governmental and External Affairs team within

ASML.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	306
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities

ASML and communities benefit from each other’s presence and support each other’s development

Our 2024 progress:
€1,084
Amount invested<br><br>per employee, including<br><br>employee giving
(2025 target: €2,500/employee)
€3.1m
Total cost<br><br>of volunteering
Why it matters
---		...for the planet	...for ASML
---	---
Our activities have an impact that goes far<br><br>beyond ASML. We have several locations,<br><br>especially our headquarters, that have seen<br><br>significant growth in recent years and are<br><br>expected to continue to grow. While the<br><br>impact can be positive and generate jobs,<br><br>prosperity and innovation, it can also add<br><br>pressure on housing, infrastructure and<br><br>essential services in the areas affected.	When our communities thrive, so do we.<br><br>We believe being a valued partner to the<br><br>communities around us is critical to our<br><br>success. We are mindful of how our<br><br>activities and growth can affect them, and<br><br>strive to build a partnership that enables us<br><br>to benefit from each other in the present<br><br>and work together to support new<br><br>development in the future.		Being a valued and trusted partner in<br><br>communities is important:
---
...for our customers
Increasing customer demand requires effective scaling<br><br>up by ASML, for which ASML’s license-to-operate and<br><br>growth in its communities is crucial.
...for our employees
A large share of ASML’s employees are located in its<br><br>communities and therefore directly affected by the<br><br>attractiveness and inclusiveness of the communities.<br><br>Also, ASML’s employees want to be proud of their<br><br>company’s impact in its communities.
...for our suppliers
A large share of ASML’s suppliers are located in its<br><br>communities and therefore directly affected by the<br><br>attractiveness and inclusiveness of the communities.
...for our shareholders
The support of ASML’s communities is crucial for its<br><br>license-to-operate and growth. When the community<br><br>thrives, ASML thrives.
...for society
ASML and communities benefit from each other’s<br><br>presence and support each other’s development.
Read more about our double materiality process<br><br>and identified impacts, risks and opportunities for<br><br>this theme in Sustainability statements – General<br><br>disclosures – Impact, risk and opportunity<br><br>management

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	307
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: How we’re managing

Our objective
At ASML, we believe we have a fundamental<br><br>responsibility to be a positive contributor and<br><br>valued partner to the communities in which we<br><br>operate, to society and to the world at large.<br><br>We aim to share the benefits of our prosperity<br><br>and create value, while mitigating the<br><br>challenges of our dynamic growth.
	Attractive communities	Inclusive communities
	We focus on initiatives to create<br><br>attractive communities, mitigate<br><br>the negative impacts of our<br><br>growth and enhance overall<br><br>quality of life in the main<br><br>locations in which we operate.	We aim to unlock people’s<br><br>potential, help them realize their<br><br>ambitions and ultimately create<br><br>equal opportunities for all.
	Investing in STEM education	Employee giving
	We are committed to boosting<br><br>STEM education for children<br><br>through initiatives that provide<br><br>them with the relevant skills for<br><br>their future and that aim to<br><br>expand the STEM talent pool<br><br>society needs.	Through our global Employee<br><br>Giving program, we encourage<br><br>employees to become involved<br><br>in their local communities by<br><br>donating their time, skills and<br><br>resources to charitable<br><br>organizations.		Specific roles and<br><br>responsibilities for this topic
---
In 2023, we created a Community<br><br>Partnership Program (CPP) team to<br><br>oversee our contributions to both society<br><br>and local communities. The CPP governs<br><br>all our community investments, ensuring<br><br>ASML and our communities benefit from<br><br>each other’s presence and support each<br><br>other’s development.<br><br>The Head of Society & Community<br><br>Engagement (S&CE) is the most senior<br><br>role involved in community engagement<br><br>and is the action owner for each of our<br><br>material sub-topics. Performance against<br><br>our ongoing targets is monitored at least<br><br>quarterly. The governing body reviews<br><br>and approves proposed projects within<br><br>the areas linked to our material impacts,<br><br>risks and opportunities, and expenditure<br><br>in each area is carefully tracked to ensure<br><br>we are on track to meet our ambitions.<br><br>The resources devoted to S&CE primarily<br><br>comprise 24 FTEs. The total estimated<br><br>cost of €3.4 million relating to FTEs is<br><br>included within the Consolidated financial<br><br>statements under Personnel expenses.<br><br>The financial resources devoted are<br><br>outlined in each focus area.
Read more about roles and responsibilities in<br><br>Sustainability statements – General disclosures –<br><br>ESG sustainability governance
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	308
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: How we’re managing (continued)

Our approach

We work in partnership with our

communities to significantly invest in the

areas in which we can make the most

meaningful impact, supporting our employee

community to feel proud of ASML’s

contribution and place in the community.

Moreover, we increase the STEM talent

pipeline that enables future generations to

create tech for good and we collaborate with

partners in our innovation ecosystem to fuel

the innovation.

In collaboration our CPP team focus on four

areas:

Attractive communities

Mitigate the negative impact of ASML's

growth and contribute to improvements and

positive experiences in the community.

Inclusive communities

Remove obstacles that hold back

disadvantaged community members from

reaching their potential and unlock the

potential of, and create equal opportunities

for, students.

STEM education

Help increase the STEM/technical talent

pool that society needs to solve some of its

key challenges.

ESG innovation

Support projects with great societal returns

with our knowledge and expertise, and

invest in ideation, startups and scaleups in

our communities to retain a diverse

innovation ecosystem that is attractive to the

world's top technical talent.

Read more in Sustainability statements – Social –

Innovation ecosystem

Within each of the above focus areas, we

and our stakeholders have identified and

formed 17 programs that follow from our

double materiality assessment (DMA).

In addition, based on structural community

stakeholder feedback, we determined a fifth

focus area, to support our employees in their

efforts to give back to their community in

their areas of interest. Via the Employee

Giving program, we match our employee

donations and their volunteering initiatives.

We commit to matching donations of up to

€10,000 per employee per year.

Our global CPP investment goal is €2,500

per employee by 2025.

The valued partnership policy applies

worldwide, to all our employees and

partners across the value chain. We report

publicly on key elements of our approach in

our Sustainability statements.

Targets and performance
Performance indicator	Unit	2024	Target date	Status
---	---	---	---	---
Community Partnership Program: Amount<br><br>invested per employee	€/employee	922	2025	Off track  p
Invested to ensure attractive communities	€/employee	257
Invested to ensure inclusive communities	€/employee	189
Invested to ensure STEM education	€/employee	177
Invested to realize ESG innovation	€/employee	299
Employee giving	€/employee	162	2025	Off track  p
Community Partnership Program: Amount<br><br>invested per employee, including employee<br><br>giving	€/employee	1,084	2025	Off track  p

All values are in Euros.

In 2024, the total amount of cash and in-kind

support was approximately €45.2 million –

which equates to €1,084 per employee. We

are dependent on the finalization of new

project proposals in the pipeline across all

four focus areas to enable us to meet our

€2,500 per employee by 2025 target. Our

current expectation is that we will

approximately double our society and

community investments in 2025 from 2024

and that we will just fall short of our target

which we now expect to reach in 2026.

Through employee giving, we contributed

€162 per employee against our ambitious

target of contributing €500 per employee by

2025. We will focus our efforts in 2025 on

communication and campaigns such as the

Global Volunteering month to incentivize

participation in order get closer to our 2025

target.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	309
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: How we’re managing (continued)

Levers for action

We have a range of programs within our

valued partner focus areas aligned to

achieving our ambitions:

Mitigating and improving our impact to

create attractive communities

To mitigate the negative impacts of our

growth and contribute to improvements

and positive experience in the community,

we have the following programs:

Affordable housing: We aim to mitigate

the negative effects of our impact on the

local housing market by contributing to

more affordable housing for local residents

within low-to-mid-income groups in

Brainport Eindhoven by supporting new

construction in collaboration with housing

corporations, municipalities and real estate

developers.

Steps include:

•Providing financial instruments:

Accelerating affordable housing

construction that does not distort the

housing market

•Other measures: We are always

investigating avenues to alleviate

pressure on the housing market – for

example, improved infrastructure and

company policies

Green communities: We seek to be a good

corporate citizen by contributing to livable

local communities. We aim to prevent the

loss of biodiversity and stop deforestation as

a result of our operations by preserving,

safeguarding, restoring and enhancing

landscapes. Steps include:

•Reducing and decarbonizing energy use

by supporting the community in financing

investments to reduce and/or

decarbonize energy use

•Promoting nature and green spaces by

developing biodiversity enhancement and

compensating for any loss of greenery

driven by ASML

•Improving the quality of green spaces by

contributing to facilities in and around

green spaces and assisting in their

maintenance

Sustainable mobility: We aim to mitigate

our negative effects on mobility in the

regions in which we operate and promote

the use of sustainable mobility options.

Steps include:

•Creating and improving mobility

infrastructure – Participating in public –

private initiatives for ASML-specific and

community-wide sustainable mobility

infrastructure

•Providing sustainable commuting

options: enabling and incentivizing more

sustainable options in commuting to and

from our sites

•Offering sustainable mobility options in

other journeys – stimulating the use of

shared mobility options and supporting

safety improvements to biking in the

region

Attractive sports, arts and music: If we are

to build attractive communities, sports, arts

and music are key. To compensate for our

negative impact on existing local offerings,

we have identified key areas to work on:

•Landmark initiatives: Funding landmark

events, organizations and locations that

are highly valued by the community

•Improving existing offers: Providing funds

to improve, expand and increase the

variety of local sports, arts and music

offerings

•Upfront investment for new initiatives:

Providing funds to improve and support

upfront investment to organizations that

can be self-sustaining afterward

Cultural integration: Foster positive

relationships with ASML’s neighbors and

support the integration of international

employees through local community

projects and initiatives in Veldhoven. We are

constantly striving to strengthen the bonds

between cultures. To create more positive

interactions, we have identified the following

eligible areas for us to work on.

•Improving relationships with direct

neighbors: Implementing projects with

stakeholders in the direct vicinity of our

factories and offices

•Better integrating international

employees: Actioning employee-

integration projects for both international

and local employees. This includes

helping internationals integrate into the

local area and culture by: providing

onboarding and support networks for

newcomers and continued support while

in the country; promoting understanding

of cultural norms and language (including

language courses for employees and

spouses); and creating opportunities for

integrating and participating in the local

community. We also aim to show the

added value of internationals to the local

area by supporting the local community

through volunteering, creating win-win

situations for the local community.

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 number of affordable

homes supported.

Removing the obstacles to create

inclusive communities

To remove barriers that hold back

disadvantaged community members and

create equal opportunities, we have

developed the following program

strategies:

Access to basic needs: To build

attractive and inclusive communities,

everyone must be able to participate.

That means contributing to access to

basic needs, including food, shelter,

clothes and healthcare-adjacent support:

•Food: Providing support and volunteers

to regional initiatives tackling food

insecurity and hunger

•Shelter: Supporting shelter initiatives

and recruiting staff or volunteers

•Clothing: Providing support to local

clothing initiatives

•Healthcare: Providing support to

regional healthcare-adjacent initiatives

Access to employment: Increase quality

employment by supporting unemployed

community members through training and

coaching, helping them find suitable jobs

and reach their goals. Steps include:

•Reducing the misalignment of skills:

Providing skills training and aiding

people in acquiring the relevant skills

for employment

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	310
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: How we’re managing (continued)

Levers for action

•Improving navigation of the labor market:

Setting up training, support and

guidance on labor market navigation

Access to sports, arts and music:

Contributing to the accessibility of local

offerings of sports, arts and music:

•Reducing financial barriers: Providing

support to both individuals and families

as well as to clubs and organizations so

they can offer free entry

•Reducing practical barriers: Working

with clubs and organizations to address

transport or logistical conditions

•Reducing accessibility barriers:

Providing ongoing means to sports and

culture clubs to provide expanded

options for people with health conditions

or impairments

Equal opportunities through education

for: students across the neurodiversity

spectrum, students with a different

native language and students from

disadvantaged backgrounds: We see

education as the ‘great equalizer’, creating

opportunities to help children from every

background to reach their potential.

To achieve this, we are working on:

•Helping neurodiverse students: Enabling

teachers and schools to accommodate

the needs of neurodiverse students

•Assisting non-native speakers: Providing

multilingual resources to educational

institutions, contributing to language-

neutral testing, supporting teachers and

offering international parents detailed

information on the education system

•Coursework support: Using employees to

improve education quality, help with

schoolwork and support with any other

skills needed for successful learning

•Educational pathway guidance: Providing

children, parents and caretakers with the

support, guidance and perspective they

need to choose their path with

confidence

•Bridging gaps between education and

the labor market: Providing financial

support in preparing for and navigating

the labor market

•Specialized student coaching: Providing

easy access to in-school specialized

support by, for example, supporting

walk-in hours

•Disadvantaged backgrounds: Providing

students with equal opportunities to allow

them to thrive in their educational

environment and subsequent careers

We monitor the effectiveness of our inclusive

communities programs through structural

community stakeholder feedback and by

tracking a set of pre-defined performance

indicators such as number of schools

supported.

Investing in STEM education

To increase the STEM talent pool needed to

solve some of society’s key challenges, we

have developed the following program

strategies to stimulate STEM education at

the right level:

STEM at age group 4–12 years:

Contributing to stimulating STEM education

in primary schools with ASML Junior

Academy and Experience Center visits.

STEM at age group 12–18 years:

Contributing to stimulating STEM education

in primary schools with teaching packages

and Night of the Nerds.

STEM at age group 18–24 years:

Stimulating STEM education in tertiary

education through collaborations with

vocational, bachelor and master's programs.

We invest in STEM education through

events, guest lessons and visits to ASML

premises in Veldhoven, to spark children’s

awareness, interest and joy in STEM-related

themes and topics in the Netherlands, the

US and Taiwan.

We monitor the effectiveness of our STEM

programs through structural stakeholder

feedback and by tracking a set of pre-

defined performance indicators such as the

number of children reached.

We have identified the following

community-related material sub-topics:

•Affordable housing

•Sustainable mobility

•Cultural integration

•Access to talent

Human rights impacts
We support the guidelines laid down in<br><br>the UN Guiding Principles on Business<br><br>and Human Rights and are committed to<br><br>the International Bill of Human Rights. The<br><br>provisions of our Human Rights Policy are<br><br>derived from key international human<br><br>rights standards including the ILO<br><br>Declaration on Fundamental Principles<br><br>and Rights at Work and the UN<br><br>Declaration of Human Rights, the UN<br><br>Global Compact, the principles specified<br><br>in the OECD Guidelines for Multinational<br><br>Enterprises, as well as 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 is a cornerstone<br><br>of our ESG strategy; it also sets out<br><br>ASML’s roadmap and initiatives toward<br><br>effectively and responsibly managing<br><br>areas of human rights impacts in the<br><br>ecosystem where ASML operates.
Read more in Strategic report – Corporate<br><br>conduct – Respecting human rights
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	311
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: How we’re managing (continued)

Process for engaging

Our engagement channels are made publicly

available on our website, including local

phone numbers for all our locations, email

addresses and our external Speak Up

Service. All channels are governed by our

Speak Up and Non-retaliation Policy to

encourage residents, in every community

where we operate, or anyone affected by

ASML, to openly communicate and share

ideas and concerns with ASML, without fear

of discrimination, retaliation, intimidation or

harassment.

Read more about the channels of society

engagement in Strategic report – Our business –

Engaged stakeholders

We use insights gathered from these

channels to inform our valued partner in our

communities approach at all stages,

including impact assessment, policy

development, target-setting and program

development. Our Head of S&CE has

operational responsibility for ensuring this

engagement happens and that the results

inform our approach.

We utilize external surveys and stakeholder

feedback to assess the effectiveness of, and

trust in, our overall engagement with our

affected communities.

Through our local outreach program, those

needing specific assistance can apply for

support. This allows us to understand the

perspective of those groups that require

particular consideration within our approach or

specialized assistance through the foundations

we partner with, such as equal opportunities

for women, underserved children, reducing

inequality through education for girls in China,

support for Ukraine refugees, and improving

the inclusion of people of color,

neurodivergent individuals, less-privileged

people and the LGBTQIA+ community.

Process for remediation

To make a positive social contribution, we

strive to listen to every concern we receive,

as well as taking a 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 our

detrimental effects. We want to be a

responsible corporate citizen that

contributes to the community in a way our

employees can be proud of. To achieve that,

we have implemented processes to ensure:

•Issues raised from all sources are followed

up and validated, preferably in person.

•During formal ‘participation meetings’, all

stakeholders investigate the issues and

participate in potential solutions. Decisions

on actual solutions are taken between

ASML, local government and neighbors.

Based on program strategy, decisions are

formalized in minutes of meetings and

made public – in line with new Dutch

legislation, ‘Omgevingswet’.

•Stakeholder meetings are used to track

progress and monitor pre-defined KPIs as

well as to close issues, all recorded in

minutes.

•Issues are closed in meetings and

recorded in the minutes.

Read more about our process for remediating

matters raised through our Speak Up Service in

Sustainability statements – Governance – ESG

integrated governance – Business ethics and Code

of Conduct

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	312
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Supporting causes close to the hearts of our employees

Supporting communities through our global employee giving program
Through our global Employee Giving<br><br>program, we encourage employees to<br><br>become involved in their local communities<br><br>by donating their time, skills and resources<br><br>to charitable organizations.<br><br>Through employee giving, we contributed<br><br>€162 per employee against our target of<br><br>contributing €500 per employee by 2025.<br><br>2024 marked the second full year of our<br><br>Matching Gifts program, which gives our<br><br>employees a voice in our philanthropic<br><br>contributions. For eligible employees<br><br>globally, we matched donations to non-<br><br>profit organizations up to €10,000 per<br><br>employee, per calendar year – an increase<br><br>from 2023, when we matched up to €1,000<br><br>per employee. In 2024, we supported more<br><br>than 2,200 non-profit organizations<br><br>through matching gifts.<br><br>Our employees are also entitled to eight<br><br>hours of volunteering time off per year. Our<br><br>employees contributed a total of 41,368<br><br>volunteering hours (2023: 30,450) to<br><br>community involvement. The total cost of<br><br>volunteering – part of employee giving –<br><br>increased to €3.1m in 2024 (2023: €2.2m).	To celebrate our 40th anniversary, we also<br><br>renewed our commitment to be a valued<br><br>partner in our communities by focusing on<br><br>employee giving. We encouraged everyone<br><br>to participate in our global volunteering<br><br>program through our '40 days of<br><br>volunteering' initiative, during which we<br><br>aimed to donate 4,000 hours of our time to<br><br>communities worldwide – and we<br><br>exceeded this number by reaching more<br><br>than 5,000 hours through this initiative in<br><br>2024.<br><br>Earlier in 2024, we offered all employees a<br><br>€37 credit to donate to a non-profit of their<br><br>choice, and we also ran a double gift-<br><br>matching campaign for 40 days, which<br><br>resulted in more than €2 million in total<br><br>donations to non-profits around the world.<br><br>In September 2024, CEO Christophe Fouquet<br><br>visited the office of ASML in San Jose in the<br><br>US, to experience the partnership with<br><br>Second Harvest of Silicon Valley, a food bank<br><br>that provides food to an average of about<br><br>500,000 people every month in the Santa<br><br>Clara and San Mateo counties – including<br><br>more than 135,000 children and 120,000<br><br>senior citizens. ASML has committed to<br><br>supporting Second Harvest with $1 million a<br><br>year for five years, which goes toward<br><br>building a new food distribution facility.<br><br>We also donate $250,000 a year to their<br><br>operations, enabling them to provide free,<br><br>nutritious groceries.
Small acts can create<br><br>a big impact: that’s the<br><br>spirit in which thousands<br><br>of ASML colleagues<br><br>volunteer their time every<br><br>year with organizations that<br><br>make a positive contribution<br><br>to our communities.
---
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	313
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Attractive communities

Our scope

We have a range of initiatives to create

attractive communities, mitigate the negative

impacts of our growth and enhance overall

quality of life in every community where we

operate. Within this sub-topic we focus on:

•Affordable housing

•Green communities

•Sustainable mobility

•Attractive sports, arts and music

•Cultural integration

Why it matters: Impacts, risks and<br><br>opportunities
For attractive communities we have<br><br>identified the following:
Impacts:
	Pressure on availability of affordable<br><br>housing in Veldhoven due to demand<br><br>from employees
	Car congestion and pressure on<br><br>regional infrastructure due to<br><br>employee commuting
	Pressure on social cohesion in<br><br>Veldhoven local community due to a<br><br>more diverse local population<br><br>including ASML expats
Risks and opportunities:
	Failure to create an attractive<br><br>community for future employees,<br><br>could impact our ability to attract<br><br>talent
	Failure to create an attractive<br><br>community for future talent, could<br><br>impact our ability to effectively<br><br>manage our local supply chain output
	Addressing adverse reactions from<br><br>local communities could impact our<br><br>ability to effectively manage our<br><br>business
	Adverse reactions from local<br><br>communities could impact our ability<br><br>to grow in Veldhoven
Read more in Strategic report – Performance<br><br>and risk – Risk			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Amount invested to ensure attractive<br><br>communities	€/employee	€257	n/a	2025	Off track  p

Of the total CPP investment, €10.7 million

was invested in programs pursuant to

creating attractive communities in 2024. This

represents €257 per employee and

contributed to our overarching CPP target of

€2,000 per employee by 2025.

Read more in Sustainability statements – Social –

Valued partner in our communities – How we're

managing

Our actions and resources

In order to address our material impacts, we

have implemented the following key

programs:

Contributing to affordable housing for

local residents

By the end of 2024, in collaboration with

private and (semi-) public partners, we

supported the construction of rent-

controlled, affordable housing for local

residents (non-ASML employees) with low-

mid incomes within the Brainport Eindhoven

region in the Netherlands. We expect, by

2025, 130 affordable homes to be built as

part of the Springplank project, and by 2026,

249 affordable homes as part of the TAC

project, 104 affordable homes with the

Zuidrand project, and 237 affordable homes

(with a total of 305 homes) as part of the

Djept project. By 2029, we expect a further

276 homes as part of the Sierlijke Dames

project, with at least 194 in the affordable

housing category and, by 2030, 400 homes

under the Humperdincklaan project, with at

least 372 in the affordable housing category.

We are committed to paying compensation,

under certain conditions, to both

Springplank and TAC for possible losses on

the construction project. To prevent the

support from distorting the market, the

compensation will only be paid out if the

project has been finalized and is loss-

making. However, if the gross profit margin

on the project exceeds certain thresholds,

Durendael (a development combination of

BPD and Van Santvoort) and Focus on TAC

have agreed to donate (a portion of the)

surplus profit to the Brainport Eindhoven

Partners Foundation. For the projects Djept,

Humperdinklaan, Sierlijke Dames and

Zuidrand, ASML will contribute upon

finalization an agreed amount. Without

ASML de-risking or limiting the loss

exposure of these projects, construction of

these affordable homes would not

commence.

Our aim is to support the construction of

25,000 affordable homes by 2040. With this,

the company aims to make an important

contribution to solving the shortage of

affordable housing in the region. The primary

challenge is to identify and select the most

suitable affordable housing projects that are

truly in need of financial support in order to

continue, and to structure and fund projects

in such a way that we minimize any further

disturbance to the housing market. Our goal

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	314
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Attractive communities (continued)

for 2024 was to support the construction of

1,500 affordable homes. By the end of 2024,

ASML had approved projects supporting the

construction of 1,286 affordable homes.

Based on existing initiatives, the first 483

affordable homes are expect to be delivered

to low- to mid-income earners in the

community by 2025 and 2026.

Investing in sustainable mobility

In 2024, we collaborated to co-finance a

package of infrastructure measures in the

Brainport Eindhoven region. Via a public–

private partnership program, ‘MIRT 1’, we

contribute by investing in seven key

infrastructure initiatives to promote

accessibility, safety and spatial planning –

including investments in the central bus and

railway station, bus and bicycle lanes, and

other infrastructure improvements.

The overall financing is expected to be €1.6

billion over 10 years – representing a

combined commitment by the Dutch central

government, the province and local

municipalities, and participating companies

in the private sector such as ASML.

Contributions to ‘MIRT 1’ toward the

sustainable mobility (infrastructure) is

supplementary to the 'Beethoven' project

with the Dutch central government.

Encouraging social cohesion and cultural

integration

Our growth has a high impact on the

Brainport Eindhoven local community and

we take responsibility for creating social

cohesion in the region by facilitating positive

interactions between cultures.

In 2024, we introduced the following key

activities to bring together local and

international members of the Brainport

Eindhoven community:

ASML x Brabant C

Over the course of 2024 and 2025, we are

investing approximately €2 million in the new

ASML x Brabant C cultural partnership to

facilitate an expanded and inclusive cultural

offering in the region. The partnership offers

professional culture-makers an opportunity

to develop new initiatives accessible to

everyone. Some of these initiatives include

the Storioni Festival, Glow, Stichting

Wildpark, Crafts Film Festival, Next Nature

Networks and Dutch Silent Film Festival.

De Schalm Theatre, Veldhoven

In our new partnership with Theater de

Schalm, the new exciting Veldhoven events

will emphasize the international character of

Veldhoven. We aim to make theater visits

more accessible by opening the venue’s

doors to a broader and younger audience.

All children up to 12 years old can attend

youth and family performances for free.

Over the coming years, we will scale up our

collaboration to create more social cohesion

across people from all age groups and

backgrounds. Our goal for this ongoing

initiative is to reach everyone in the

Veldhoven community through multiple

cultural initiatives throughout the year.

Buddy system for internationals

In 2024, to help create more interactions

between locals and internationals, our pilot

project with Cordaad links 20 international

families with a local ‘buddy’. The buddies

help the families to integrate, and answer the

day-to-day questions they might have.

Read more about our initiative on inclusive

education to help children of our international hires

integrate into the Dutch schooling system in

Sustainability statements – Social – Valued partner in

our communities – Inclusive communities

Creating solidarity through sports, arts

and music

We continued our support of the following

initiatives that mitigate the negative impacts

of our growth and further contribute to social

cohesion in the community:

Effenaar music venue, Eindhoven

We strengthened our collaboration with the

Effenaar, with the aim of bringing more

popular and international artists to

Eindhoven in the coming years. As well as

concerts at the venue, we expanded the

annual Hit The City music festival held in

various locations around the city. In 2024,

the line-up consisted of more than 100 acts

and attracted around 31,500 people.

ASML Summer Games (ASML Zomerspelen)

Over 1,200 children and teenagers joined the

first edition of the ASML Summer Games in

2024. Organized with BrabantSport and

many local partners, to increase access and

connect young people through sports, the

program offered 24 different free sports

clinics to local 6-to-18 year-olds, targeting

families with fewer resources as well as

young people with different care needs.

We involved 34 sports clubs and provided

60 children with sports gear for the clinics.

On average, each participant discovered five

new sports. Our partners are linking families

to the right resources to ensure that the

children are given every opportunity, even

if there is not enough money at home.

Partnership with Muziekgebouw Eindhoven

We have a long-term partnership with the

Muziekgebouw Eindhoven, the main concert

hall in the city. We invite the best musical

and artistic talents from among our own

employees to take to the stage at the venue

once a year at our ASML on Stage event.

Other activities we’ve been<br><br>involved in:
ASML Marathon Eindhoven: The 40th<br><br>edition of the ASML Marathon Eindhoven,<br><br>with 38,000 runners from around the world.<br><br>Over 3,300 ASML employees took part in<br><br>the various races. As the title partner, we<br><br>covered the entry costs for 500 local<br><br>residents with limited resources, as well<br><br>as for all our employee runners.		Van Gogh museum: In Brabant, we<br><br>increased access to the Van Gogh Village<br><br>Museum in Nuenen by making entry free<br><br>for all children under 18.<br><br>GLOW Light Art Festival: We were a<br><br>partner and sponsor of the annual GLOW<br><br>Light Art in Eindhoven, displaying the<br><br>works of famous national and international<br><br>light artists throughout the city center.<br><br>In 2024, around several hundred thousand<br><br>people visited the festival.<br><br>Drop of Light exhibit and experience<br><br>lab: At the 2024 Taiwan Lantern Festival,<br><br>we presented our ‘Drop of Light’ exhibit,<br><br>as well as an experience lab to learn more<br><br>about STEM concepts. The festival, held<br><br>in Tainan, welcomed around 150,000<br><br>visitors. The exhibit, produced by artist<br><br>Gijs van Bon together with 130 ASML<br><br>engineers, was inspired by the light source<br><br>inside our EUV lithography systems.<br><br>Partnership with PSV: We sponsor PSV<br><br>Eindhoven football club, together with<br><br>other regional businesses, jointly<br><br>promoting 'Brainport Eindhoven' on the<br><br>players' shirts. In addition, we have<br><br>enabled access to matches for thousands<br><br>of underserved local residents through our<br><br>ASML Community Lounge at the stadium.
---
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	315
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Attractive communities (continued)

Contributing to green communities

We contributed to the decarbonization of

energy use and investing in nature within

communities through the following activities:

Creating more green spaces (NL)

The ‘Trees for all’ partnership was launched

in 2024 with the aim of planting 455,000

trees in the Brainport Eindhoven region in

the next three years – the equivalent of 310

football fields.

Ambler Farm (US)

Ambler Farm is a community farm dedicated

to promoting reconnection to the natural

world and year-round environmental

sustainability. The educational gardens,

animal habitats and outdoor classroom

space at Ambler Farm – which will be rebuilt

and enhanced with ASML's support – are

visited by over 17,000 visitors annually.

This grant will provide 14,830 local young

people with environmental education and

improved access to green space.

In addition to funding, ASML volunteers are

an essential component, with more than

1,500 volunteer hours served with Ambler

Farm in 2024.

Resources

A total of €92.2 million has been committed

to building attractive communities, of which

€10.7 million has been expensed in the

current year and reported within the

Consolidated financial statements under

Selling, general and administrative costs.

Anticipated future expenditure amounts to

€81.5 million.

Looking ahead

In 2025, we will continue with the execution

of our existing initiatives and develop new

projects to further expand our investments in

creating attractive communities in the

vicinity of our larger sites. The primary focus

will be on projects supporting affordable

housing in the Brainport Eindhoven region,

sustainable mobility, attractive sports, and

arts and music, which we will develop and

execute with our partners in the

communities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	316
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Inclusive communities

Our scope

Inclusivity begins by removing obstacles that

are holding back more disadvantaged

members of communities where we operate.

Within this sub-topic, we focus on access

to:

•Basic needs

•Employment

•Sports, arts and music

•Equal opportunities through education

Why it matters: Impacts, risks and<br><br>opportunities
For inclusive communities we have<br><br>identified the following:
Impacts:
	Pressure on Veldhoven's regional<br><br>talent pipeline impacting local<br><br>companies due to ASML's demand<br><br>for talent
	Pressure on social cohesion in<br><br>Veldhoven local community due to a<br><br>more diverse local population<br><br>including ASML expats
Risks and opportunities:
	Failure to create an attractive<br><br>community for future talent, could<br><br>impact our ability to effectively<br><br>manage our local supply chain output
	Failure to create an attractive<br><br>community for future employees,<br><br>could impact our ability to attract<br><br>talent
Read more in Strategic report – Performance<br><br>and risk – Risk			Targets and performance
---		Performance indicator	Unit	2024	Target	Target date	Status
---	---	---	---	---	---
Amount invested to ensure inclusive<br><br>communities	€/employee	€189	n/a	2025	Off track  p

Of the total CPP investment, €7.9 million

was invested in programs pursuant to

creating inclusive communities in 2024. This

represents €189 per employee and

contributed to our overarching CPP target of

€2,000 per employee by 2025.

Read more in Sustainability statements – Social –

Valued partner in our communities – How we're

managing

Our actions and resources

Below are the key activities focused on

increasing access to employment while

decreasing pressures felt by local

companies as a result of the shortage of

talent.

Improving access to employment through

Brace

In August 2024, we launched our Brace

program, with the aim of improving access

to employment for young people and

migrants in the Brainport Eindhoven region

focusing on these groups to deliver the

biggest societal impact. We partner with the

BuzinezzClub Foundation (BCF), a charity

that helps people succeed in the Dutch labor

market through free multiyear career

coaching.

Our objective is to support 3,500 vulnerable

youth and migrants over the next three years

to make better career choices and develop

the right skills and network to successfully

maintain their actions. We expect to guide

60% of them (2,100) into a job, education,

entrepreneurship or a combination.

Breaking down the language barrier

The 'Labor Participation Boost' program

aims to increase chances in the labor market

for involuntarily unemployed, non-native-

speaking community members who find that

language is a barrier to finding vacancies,

applying for and being eligible for jobs.

We partner with Taalkracht, a non-profit

organization specialized in strengthening

language skills for adults. Our objective is to

support 800 migrants to improve their

opportunities by furthering their Dutch

language skills and guide 25% to work or

further education. The program began in

December 2024 and will stretch over 40

weeks and 120 lesson hours.

Below are the key activities focused on

increasing access to education and

integration of international students:

Inclusive education

We want to unlock the potential of – and

create equal opportunities for – all students

in the Brainport Eindhoven region. Our

inclusive education program is focused on

improving children's perspectives,

confidence and skills, and facilitating the

integration of international students and

neurodiverse children in the region.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	317
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Inclusive communities (continued)

Activities include:

Other activities we’ve been involved in:

Boys & Girls Clubs (US)<br><br>In 2023, we expanded our partnership<br><br>with the Boys & Girls Clubs of Silicon<br><br>Valley to support their summer enrichment<br><br>and college readiness programs through<br><br>2025. Their summer programs offer lower-<br><br>income students opportunities to<br><br>participate in sports, arts and wellness-<br><br>focused camps, while the college<br><br>readiness program provides leadership,<br><br>job readiness and financial literacy skills,<br><br>encouraging academic and career-<br><br>oriented goals. Our partnerships in Silicon<br><br>Valley, San Diego and Bridgeport,<br><br>Connecticut will also continue to grow<br><br>with STEM-focused programming and<br><br>support.<br><br>ASML School Football Tournament (NL)<br><br>In collaboration with youth organization<br><br>Dynamo Jeugdwerk and the FC<br><br>Eindhoven Foundation, we organized an<br><br>ASML school football tournament in 2024<br><br>for all primary and secondary schools in<br><br>Eindhoven and the Kempen region.<br><br>To eliminate financial barriers,<br><br>participation was free for all youngsters.<br><br>A total of 335 teams with more than 3,000<br><br>participants competed from across the<br><br>region. As of 2025, we expect to scale<br><br>and support 4,000 children per year in the<br><br>Brainport Eindhoven area.

Weekend and after-school programs<br><br>(NL)<br><br>Students from disadvantaged<br><br>backgrounds often face educational and<br><br>career development challenges due to<br><br>inequality of opportunity. They may fall<br><br>behind in school due to a lack of self-<br><br>confidence, role models or perspective,<br><br>or limited support and guidance. Our<br><br>partnership with weekend schools focuses<br><br>on giving children support and guidance,<br><br>as well as building their confidence, skills<br><br>and networks. These programs, which<br><br>typically start when children are 10 or 11<br><br>years old, take place on Sundays or after<br><br>school. We provide financial support to<br><br>help scale these proven programs in the<br><br>region.

•Language and library project (0–12 year-

olds): This initiative focuses on the

increasing number of international children

enrolling in the educational system of the

Brainport Eindhoven region. To adapt to

this changing population, schools in the

region are focusing on making the children

feel at home to help enhance their learning

and growth. To support the development

of language skills, ASML co-develops and

co-funds the '@home in languages'

project. Research shows that children

learn the Dutch language faster if they are

also allowed to use their native language

at school. The ambition is to make

multilingual books available in over 100

schools, libraries and childcare facilities in

the region. The project educates teachers

on how to use these books in the

classroom, and includes an expertise

center for multilingual education. So far,

we made multilingual educational materials

available in 48 schools, libraries and

childcare facilities.

•International teaching academy (12–18

year-olds): This initiative focuses on

amplifying the skills of high school

teachers and educational staff that work in

an increasingly international environment.

The aim is to support the schools in

helping international students settle into

the Brainport Eindhoven region. ASML co-

develops and co-funds the International

Teaching Academy, and activities include:

–An international coordinator at the

schools

–Training for over a thousand teachers on

multilingual and multicultural teaching

–Collaboration on training and schooling

across main educational institutes

•Inclusive education support (0–12 year-

olds): We offer neurodiverse and

multilingual children in the Brainport

Eindhoven region the opportunity to

optimize the use of their talents through

the inclusive education support program.

We co-developed and co-fund the project,

which includes:

–Training and workshops for over 1,000

teachers, educational professionals and

international parents

–Enabling international educational

psychologists in school and childcare

systems – so far, 45 professionals have

been recruited and 25 languages have

been covered

–Improving information for international

parents with questions about education

and childcare options, through an

online and offline support center

Resources

A total of €37.1 million has been committed

to building inclusive communities, of which

€7.9 million has been expensed in the

current year and reported within the

Consolidated financial statements under

Selling, general and administrative costs.

Anticipated future expenditure amounts to

€28.6 million.

Looking ahead

In 2025 and beyond, together with local

partners and experts, we will continue to

execute and develop projects for children

from a disadvantaged background,

international children and neurodivergent

children. To reach our ambition, we will

expand the current number of institutions

and children involved.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	318
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Investing in STEM education

| Our scope | | --- || Performance indicator | Unit | 2024 | Target | Target date | Status | | --- | --- | --- | --- | --- | --- | | Amount invested for STEM education | €/employee | €177 | n/a | 2025 | Off track  p |

We remain committed to boosting STEM

education for children and young people

through initiatives that provide them with

relevant skills for their future and that aim to

expand the STEM and technical talent pool

society needs.

By investing in STEM initiatives, we hope to

make a positive impact on local

communities through helping to increase the

STEM and technical talent pool, and

providing both children and young people

with the relevant skills they need for the

future job market. We focus our efforts in the

Netherlands, the US and Taiwan.

Why it matters: Impacts, risks and<br><br>opportunities
For STEM we have identified the<br><br>following:
Impacts:
	Pressure on Veldhoven's regional<br><br>talent pipeline impacting local<br><br>companies due to ASML's demand<br><br>for talent
Risks and opportunities:
	Failure to create an attractive<br><br>community for future talent, impacting<br><br>our ability to effectively manage our<br><br>local supply chain output
Read more in Strategic report – Performance<br><br>and risk – Risk			Targets and performance
---

Of the total CPP investment, €7.4 million

was invested in STEM education in 2024.

This represents €177 per employee and

contributed to our overarching CPP target of

€2,000 per employee by 2025.

By 2025, we plan to reach over 200,000

children within a 35 km radius of Veldhoven

in the Netherlands, in Wilton in the US and in

Taiwan. The overall goal is to stimulate

STEM education and create a new

generation of talent – one that can drive

future innovation not only within ASML itself,

but in the local and regional communities in

which we have a foothold.

Our actions and resources

Inspiring children to choose STEM

We believe that creating awareness and

interest in STEM at a young age translates

into increased consideration of STEM-

related education and careers later in life.

We play our role by supporting the

improvement and attractiveness of STEM

education, showcasing attractive job

prospects and role models, and by

strengthening infrastructure and

collaboration in the region. We invest in

STEM projects, events, guest lessons at

schools and visits to ASML premises in

Veldhoven.

In 2024, our primary STEM initiatives

focused on partnerships and events in the

Netherlands and the US. We have

experienced significant growth in the

number of children we have reached through

STEM education, particularly with the

expansion this year of the ASML Junior

Academy – which has now reached more

than 90,000 children.

The Netherlands

The Junior Academy provides a dedicated

program of activities within the mainstream

education system, focused on all children in

primary school (4–12 years old), regardless

of a pre-existing interest in STEM. The

academy provides primary schools with

engaging structural STEM lessons for all

children, six times per school year for at

least three school years, fully funded by

ASML. We drive and fund the Academy

through a partnership with Mad Science –

sparking children's awareness, interest and

joy in STEM-related themes and topics.

In 2024 we also supported and participated

in 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 (VMBO, HAVO/VWO and MBO).

An additional STEM program – STEMup –

was launched in 2024 for 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

STEM classes. The goal of the program is to

engage students in STEM activity from a

societal perspective, and increase the

interest in and the perceived relevance of

STEM.

In addition, in 2024, we also continued and

expanded our investment in FIRST Lego

League and FIRST Tech Challenge. With this

support, ASML ensures the prolongation and

expansion of competitions for the finals and

various semifinals of these Robotics

challenges.

US

In the US, we expanded our support of

STEM programs at local Boys & Girls Clubs.

We continued funding the Boys & Girls Clubs

of Silicon Valley’s SciTech program, reaching

4,627 students across 33 after-school

locations in 2024. In Bridgeport, Connecticut,

we funded materials and supplies for the

Madison Avenue Clubhouse’s STEM Lab and

Makerspace, benefiting approximately 720

local young people. In San Diego, we

supported the Boys & Girls Clubs of Greater

San Diego’s STEM program, facilitating

weekly STEM modules, staff training, STEM-

related summer field trips and computer lab

upgrades at six local clubhouses.

In 2023 we expanded the Junior Academy to

Connecticut, investing $2.2 million over

three years in partnership with Mad Science

to provide free interactive technology

education lessons to children aged 4 to 12 in

Wilton and surrounding communities. This

initiative aims to reach over 13,000 children

in the US with six experiential technology

lessons. At the end of 2024, the Academy

has onboarded 30 schools in Fairfield

County, reaching 8,281 students. Employee

engagement has been strong, with 114

employees trained by Mad Science and 32

employees actively participating in teaching

lessons.

Taiwan

In 2023 we started a partnership with Junyi

Academy and Teach for Taiwan to launch

the 'Train the STEM Trainers' project. So far

we have successfully trained over 400 STEM

promoters (including teachers, employees

and university students) and, with the mature

remote learning approach in Taiwan, our

STEM content has reached over 50,000

students since 2023. In addition to the

efforts from community partners, over 300

ASML employees were also trained as STEM

promoters, and we introduced the

‘Masterminds and Masterpieces’ curriculum

to underserved schools via the Hope

Reading project with the Commonwealth

Magazine Education Foundation. Fifteen

rural schools were able to participate in an

international STEM program facilitated by

ASML’s volunteers.

Read more in Sustainability statements – Social –

Valued partner in our communities – Supporting

causes close to the hearts of our employees

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	319
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Investing in STEM education (continued)

Resources

A total of €31.7 million has been committed

to enabling STEM education, of which €7.4

million has been expensed in the current

year and reported within the Consolidated

financial statements under Selling, general

and administrative costs. Anticipated future

expenditure amounts to €24.3 million.

Looking ahead

We will continue to scale the ASML Junior

Academy, including adding more locations,

such as additional cities where we operate in

the US. We will continue to expand the

STEMup program in line with the project

ambition. In addition to projects provided

directly to children and youngsters, we also

aim to support initiatives to aid teachers,

enhance (evidence-based) learning and

effective collaboration in the STEM domain.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	320
General disclosures	Environmental	Social	Governance
---	---	---	---

Valued partner in our communities: Additional disclosures

Methodology on targets

Achieve an investment of €2,500 per employee,

including employee giving, by 2025

Targets are established by the ESG cross-

functional table meetings, including key

stakeholder representatives from the different

governance bodies. The €2,500 per ASML

employee figure was established after an external

benchmark was conducted to set direction for the

budget, including the perspective of Giving in

Numbers – a comprehensive public benchmark.

The division over the four focus areas was

established by the CPP team.

This initiative targets communities impacted by

our operations, with a primary focus on our larger

sites in Brainport Eindhoven, Wilton, Silicon

Valley, San Diego and Hsinchu. We are also

looking to align our approach with the UN SDGs,

particularly SDGs 4 (Quality education) and 11

(Sustainable cities and communities).

The target-setting process involved extensive

discussions within the CPP team and alignment

with all relevant stakeholders, as detailed in the

Roles and responsibilities section of our policy.

This collaboration ensures that our goals reflect

the needs and expectations of our valued

partners. Initially, our performance was measured

based on the total euros invested – but, due to

our rapid growth, we have shifted to measuring

investment per employee. This adjustment allows

us to scale our ambitions and maintain our

commitment to being a valued partner to the

communities we serve.

The effectiveness of our actions will be monitored

through the CPP, which evaluates and approves

initiatives based on their impact, feasibility and

risk, ensuring our investments are making a

meaningful difference in the communities we

serve.

We also continue to track our progress using

engagement with affected communities through

independent surveys and directly with the Head

of S&CE.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	321
General disclosures	Environmental	Social	Governance
---	---	---	---

Governance at a glance

Our ambition
Strong governance<br><br>builds strong<br><br>corporations. Our aim is<br><br>to implement policies<br><br>that maintain the highest<br><br>standards of integrity,<br><br>create long-term value<br><br>for our stakeholders and<br><br>help build a fairer, more<br><br>cohesive society.
On the following pages,<br><br>we set out our approach<br><br>and progress to date.		ESG integrated<br><br>governance
---
We aim to make sustainability part of all<br><br>regular day-to-day decision-making, and<br><br>deliver on our ESG sustainability mission<br><br>and responsibilities.<br><br>ESG is part of all regular, day-to-day<br><br>decision-making.
Read more on page 322 >
We’ll do this by focusing<br><br>on the following sub-topics:
•Responsible business conduct and<br><br>compliance (covering compliance with<br><br>Business ethics and Code of Conduct<br><br>and Anti-bribery and anti-corruption)

Transparent reporting
We are open and transparent, driving<br><br>progress while building trust with our<br><br>stakeholders. Our commitment to<br><br>integrated reporting reflects our view that<br><br>our ESG-related information is as<br><br>important as our financial information.<br><br>‘Open and transparent’ reporting,<br><br>according to our stakeholders.
We’ll do this by focusing on:
•Internal reporting and communications<br><br>•External reporting and communications
Engaged stakeholders
	We want to be viewed by our<br><br>stakeholders as a top performer on ESG<br><br>sustainability, as we depend on strong,<br><br>sustainable relationships with them across<br><br>the value chain.<br><br>Our stakeholders view ASML as a top<br><br>performer on ESG sustainability.	We’ll do this by focusing<br><br>on the following stakeholder groups:
		•Customers<br><br>•Employees<br><br>•Suppliers<br><br>•Shareholders<br><br>•Society
	Read more in Strategic report – Our business –<br><br>Engaged stakeholders on page 46 >
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	322
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance

ESG is part of all regular, day-to-day decision-making

Why it matters

Our policies affect different groups of<br><br>stakeholders: customers, employees, suppliers,<br><br>shareholders and society at large. Having their<br><br>trust and collaborating with these groups to inform<br><br>our wider ESG strategy is important:
...for our customers
We aim to be a trusted supplier. We have corporate policies and<br><br>procedures in place detailing our principles and compliance, guiding<br><br>us in making the right decisions and living up to our values.
...for our employees
They will only feel empowered to share their views if we foster a<br><br>culture of transparency and respect – which is why our Integrated<br><br>Governance Policy is based on our company values, purpose,<br><br>vision and mission.
...for our suppliers
We aim to inform our suppliers to ensure we conduct business in a<br><br>compliant way, compliant with applicable laws and regulations in all<br><br>countries we operate in.
...for our shareholders
We aim to report transparently so our shareholders can make well-<br><br>informed decisions.
...for society
We aim to be transparent about the economic, environmental and<br><br>social impact of our activities and our performance goals, metrics<br><br>and results.
Read more about our double materiality process and identified<br><br>impacts, risks and opportunities for this theme in Sustainability<br><br>statements – General disclosures – Impact, risk and opportunity<br><br>management		...for the planet	...for ASML
---	---
Sustainability matters to stakeholders up and down our<br><br>value chain, and together we are building a shared<br><br>consensus of the importance of ESG-driven thinking.<br><br>Integrity, honesty and transparency inform our entire<br><br>ESG approach, including the decisions we make and<br><br>disclose about our performance.<br><br>As part of this, to ensure we can create long-term value<br><br>for our stakeholders, we want to have good<br><br>relationships with our stakeholders and support those<br><br>who are more vulnerable, ensure compliance with data<br><br>privacy regulations, and have more political<br><br>engagement with regard to ESG topics.	We aim to act on our responsibilities and anchor ESG<br><br>sustainability across our entire business. Robust<br><br>integrated governance policies and an ongoing<br><br>commitment to responsible business conduct and risk<br><br>management are essential.<br><br>Ethics and compliance are a foundation to our<br><br>sustainability strategy. We aim to foster a fair,<br><br>transparent and inclusive culture – one where people<br><br>feel empowered to speak up about the changes<br><br>needed to make our sustainability transition a success.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	323
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: How we’re managing

Our objective
We manage ESG sustainability as an integral<br><br>part of our corporate strategy and are<br><br>committed to conducting business in<br><br>compliance with all applicable laws and<br><br>regulations in all the countries we operate in.<br><br>We champion good integrated corporate<br><br>governance to build a relationship of trust,<br><br>respect and mutual benefit with our<br><br>stakeholders. To that end, we aim for ESG to<br><br>be part of all regular, day-to-day decision-<br><br>making.		Business ethics and<br><br>Code of Conduct
---
We are committed to ethical<br><br>business practices and<br><br>adherence to the highest<br><br>standards of fairness, integrity<br><br>and compliance in every country<br><br>where we operate.		Anti-bribery and<br><br>anti-corruption
---
If we are to demand the highest<br><br>standards of employees,<br><br>customers, suppliers,<br><br>contractors and other business<br><br>partners, we must go above and<br><br>beyond in embodying the same.<br><br>We do not tolerate any form of<br><br>bribery or corruption.		Specific roles and<br><br>responsibilities for this topic
---
Our business ethics governance model is<br><br>built around the following roles and<br><br>responsibilities:<br><br>•The Compliance, Ethics, Security and<br><br>Risk Committee (CESR) is responsible<br><br>for policymaking and supervision of our<br><br>compliance with legal and ethical<br><br>requirements. The CESR receives<br><br>quarterly updates on the ethics<br><br>program.<br><br>•Our CESR Ethics Committee<br><br>investigates significant notifications of<br><br>potential breaches of our Code of<br><br>Conduct worldwide.<br><br>•Our Ethics & Business Integrity team<br><br>oversees and implements our Ethics<br><br>program. All reports of a possible<br><br>breach of our Code of Conduct are<br><br>screened by one of the team members<br><br>and significant reports are discussed<br><br>with the CESR Ethics Committee.<br><br>•Our Ethics organization includes<br><br>employees who act as ethics liaisons in<br><br>the countries where we operate. They<br><br>serve as trusted representatives and are<br><br>the first local point of contact for<br><br>employees who have questions or<br><br>concerns.
Read more about roles and responsibilities in<br><br>Sustainability statements – General disclosures –<br><br>ESG sustainability governance
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	324
---	---	---	---	---	---
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: How we’re managing (continued)

Our approach

We manage our overarching sustainability

commitments as part of our business

strategy. Integrating ESG sustainability

directly into our governance policies helps

us be more accountable and improve

execution.

For over a decade, our company has been a

member of the RBA – the world’s largest

industry coalition dedicated to corporate

social responsibility in the global electronics

industry.

The RBA Code of Conduct ensures working

conditions in organizations and their supply

chains are safe, that workers are treated

with respect and dignity, and that business

operations are both ethical and

environmentally responsible. Our Code of

Conduct is purposefully drafted to align with

the RBA’s, and focuses on the following key

principles:

•We respect people: We are committed to

maintaining a safe and healthy working

environment and respecting human rights,

in line with international laws and

regulations and industry standards such as

the RBA Code of Conduct.

•We operate with integrity: We foster a

strong culture of integrity and compliance

that underpins our business success.

•We commit to safety and social

responsibility: Technology touches every

part of society. By helping make chips

affordable and more powerful, we have an

important role to play regarding our

reputation, results and impact on the

environment.

•We protect our assets: Our most valuable

assets are our people and their

knowledge, both of which must be valued

and protected.

We are also firmly committed to conducting

our business with fairness, integrity and

respect. We promote and uphold ethical

behavior and seek to foster a culture where

speaking up is both encouraged and

appreciated.

Our expectations for employees – as well as

for customers, suppliers, contractors and

other business partners – are documented in

policies such as Anti-Bribery and Anti-

Corruption, Human Rights, Anti-Fraud,

Insider Trading Rules, Gifts and

Entertainment, and Competition Law

Compliance, and in our Code of Conduct.

We embody our core principles in all our

business dealings. We clearly and

convincingly embody our commitment to

personal and professional integrity, never

allowing ourselves to be improperly

influenced by others – and never improperly

influencing others in return.

Regarding payments and political

contributions, it is forbidden for employees,

or any parties acting for us or on our behalf,

to accept or provide facilitation payments or

make political contributions on behalf of the

company.

We have identified key functions within

ASML that are most at risk of fraud, bribery

and corruption, and have an array of anti-

fraud, anti-bribery and anti-corruption

policies in place outlining the stringent

measures we take to prevent them. Each

policy has been carefully drafted to be fully

compliant with all applicable laws and with

our own Code of Conduct.

We have also identified the following

material sub-topics:

•Business ethics and code of conduct

•Anti-bribery and anti-corruption

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	325
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: How we’re managing (continued)

Levers for action

We have laid out ambitious sustainability

targets. To achieve them, sustainability

must be fully integrated across all our

operations – with improvements

incorporated directly into our existing

governance strategies. This includes

through: our purpose, vision, mission and

values; our strategy and business priorities;

our organization, processes and

governance; and risk management and

responsible business conduct.

Embedding policies and principles in our

organization

Our dedicated ethics, business integrity

and compliance program provides the

necessary support, advice, training and

communication to enable employees and

stakeholders to understand and follow our

Code of Conduct – building awareness

through various communication channels to

promote a culture of high integrity. It also

helps create an open and honest culture

that fosters compliance with the law and

ASML policies across the organization.

We ensure target monitoring and reviews

are an integral part of our yearly policy

review process, allowing us to continuously

refine our strategies and actions.

Speak Up Service

Our whistleblowing service, Speak Up,

applies to anyone who carries out work for,

or on behalf of ASML – and to any other

person or party we are involved with

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 all employees to feel safe to

express their concerns without

apprehension or fear of reprisal, and do not

tolerate any form of retaliation against

employees or third parties who raise a

concern in good faith. This also applies to

participating in investigations about

suspected violations of the Code, even if we

could lose business as a result.

Speak Up is hosted online by an

independent, external service company in

several different languages, and toll-free

phone numbers are also available in every

country we operate in. We have a dedicated

email address and ethics liaisons. Reporting

can also be done anonymously.

We assess every Speak Up report we get

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 nature of the

message, as well as conducting more

detailed analyses or investigations. When

required, we implement remedial actions to

prevent a reoccurrence.

We continuously improve our Speak Up

Service, ensuring employees feel safe and

supported when reporting any concerns.

Read more in our Speak Up and Non-retaliation

Policy, which is publicly available at asml.com

Training programs

Ethics program training

Our curriculum helps support management

and employees in everyday decision-making

and provides guidance on topics such as

conflicts of interest, personal relationships

at work, cultural differences and ethical

aspects around any paid or unpaid activities

outside their jobs at ASML.

All new employees are invited to complete

the first module of the curriculum within

their first three months at ASML. As well as

generic modules, the curriculum includes

sections to target audiences with specific

exposure to areas like anti-bribery and anti-

corruption, gifts and entertainment, and

respect for people – a key part of our Code.

Target audiences are assessed at least on

an annual basis and include: BoM,

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.

Code of Conduct employee training

By the end of 2024, 97% of employees had

completed our mandatory Code of Conduct

employee training. A follow-up series is

cascaded in three-month intervals, covering

a broad range of topics such as Speak Up,

Anti-Bribery and Anti-Corruption, Anti-

Fraud, Insider Trading and ‘We respect

people’.

Anti-fraud, anti-bribery and anti-corruption

training

Our curriculum covering these topics

includes a mandatory e-learning course as

well as annual refresher trainings, supported

by additional classroom training tailored to

specific stakeholder groups or business

activities.

Surveys

We also proactively measure how

embedded our values are – or aren’t –

within ASML. We use our annual employee

engagement survey to take the pulse of the

business.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	326
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Business ethics and Code of Conduct

Our scope

Business ethics and Code of Conduct

applies to all decision-making within ASML,

as well as how we conduct business

relationships both upstream and

downstream in the value chain.

	Why it matters: Impacts, risks and<br><br>opportunities
	For Business ethics and Code of<br><br>Conduct, we have identified the<br><br>following:
	Impacts:
		Impact on people, the environment<br><br>and the supply chain through the<br><br>management of relationships with<br><br>suppliers
	Risks and opportunities:
		Failure to comply with regulations due<br><br>to increasing complexity as we<br><br>expand into more countries
F<br><br>a<br><br>i<br><br>l<br><br>u<br><br>r<br><br>e<br><br><br><br>t<br><br>o<br><br><br><br>c<br><br>o<br><br>m<br><br>p<br><br>l<br><br>y<br><br><br><br>w<br><br>i<br><br>t<br><br>h<br><br><br><br>r<br><br>e<br><br>g<br><br>u<br><br>l<br><br>a<br><br>t<br><br>i<br><br>o<br><br>n<br><br>s<br><br><br><br>d<br><br>u<br><br>e<br><br><br><br>t<br><br>o<br><br><br><br>i<br><br>n<br><br>c<br><br>r<br><br>e<br><br>a<br><br>s<br><br>i<br><br>n<br><br>g<br><br><br><br>c<br><br>o<br><br>m<br><br>p<br><br>l<br><br>e<br><br>x<br><br>i<br><br>t<br><br>y<br><br><br><br>a<br><br>s<br><br><br><br>w<br><br>e<br><br><br><br>e<br><br>x<br><br>p<br><br>a<br><br>n<br><br>d<br><br><br><br>i<br><br>n<br><br>t<br><br>o<br><br><br><br>m<br><br>o<br><br>r<br><br>e<br><br><br><br>c<br><br>o<br><br>u<br><br>n<br><br>t<br><br>r<br><br>i<br><br>e<br><br>s		Failure to comply with laws and<br><br>regulations for supply chain due<br><br>diligence
		Failure to comply with data privacy<br><br>regulations or breaches of data<br><br>privacy
	Read more in Strategic report – Performance<br><br>and risk – Risk			Our targets and performance
---

No matter which country we operate in,

we only wish to conduct business with

fairness, integrity and respect for the law

We aim to maintain an up-to-date Code of

Conduct aligned with the latest RBA

standards, ensuring training materials are

available for all employees and meticulously

track participation. We are constantly

enhancing our programs and strengthening

our measures. By maintaining these

initiatives and improving our processes, we

ultimately hope to demonstrate our

commitment to ethical business practices

and adherence to the highest standards of

fairness, integrity and compliance.

To track and assess the effectiveness of

these actions, we conduct a yearly ethics

survey covering 25% of our workforce, and

monitor several key metrics including the

number of Speak Up reports and the

completion rate of Code of Conduct training

– aiming for a higher rate each year.

Annual ethics pulse survey

The ethics pulse survey was sent to a

random 25% of the total employee

population, with roughly 3,400 responses.

We were pleased to see stable results, with

89% of respondents agreeing or strongly

agreeing that “ASML makes it sufficiently

clear what the principles of the Code are and

how to comply with them”.

Over 70% also strongly agreed or agreed

with the following statements:

•“ASML shows a commitment to ethical

business decisions and conduct”

•“In my immediate working environment, a

mutual relationship of trust prevails”

•“My direct manager sets the tone at the

top – i.e. a good example in terms of

ethical behavior”

Speak Up reports

During 2024, we received 727 reports. Given

the growth of our workforce and our efforts

to encourage people to report any concerns,

the increase is a positive result signaling a

healthy Speak Up culture. The number of

reports per 100 employees is 1.7.

We aim to do our utmost to protect anyone

Speaking Up. We will not tolerate any form

of retaliation or any other form of adverse

consequences against employees or third

parties who raise a concern in good faith or

participate in an investigation about

suspected violations of the Code of

Conduct, even if we could lose business as

a result.

Read more in our Speak Up and Non-retaliation

Policy, which is publicly available at asml.com

Code of Conduct training

By the end of 2024, 97% of employees had

completed the Code of Conduct training

course.

Our actions and resources

To meet our ambition we continuously

update, improve and expand our Speak Up

and Non-retaliation Policy, Code of

Conduct, Human Rights Policy and anti-

bribery and anti-corruption training

programs.

Over the last year, we have brought in an

array of initiatives to make ethical and

compliant practices an important part of our

ongoing sustainability efforts:

Code of Conduct update

and training

Our state-of-the-art Code of Conduct has

been updated in 2024 to reflect current best

practices – ensuring it evolves with ASML

and the environment in which we operate,

promoting ethical behavior and decision-

making. Alongside the updated Code, we

have also launched a Principles in Practice

platform to give examples and practical

guidance. We also have a comprehensive

training program related to the Code,

including a newly developed training module

accompanying the launch of the Code of

Conduct, and participation is tracked. Code

of Conduct training is delivered to new

employees, with annual refreshers for

existing staff.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	327
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Business ethics and Code of Conduct (continued)

Improving our ethics complaint

investigation approach

In 2024, we improved our formal

investigation guidelines that outline the

process for each phase of an investigation,

from the first report to remedial action and

final closure. As well as comprehensive

training, we have published guidance notes

for investigators, coordinators, reporting

parties and other stakeholders who may be

involved.

Promoting ethical behavior and improved

ethics training programs

We extended our ethics training curriculum

to provide additional training for our network

of ethics liaisons, as well as a refresher

series for existing employees and revamped

online training for our people managers.

Ethics liaisons are employees who, in

addition to their regular roles at ASML, serve

as trusted representatives, and act as the

first local point of contact for employees

with questions and concerns related to

ethics in all the countries we operate in.

Our ethics program provides support, advice

and training to help employees and other

stakeholders understand and uphold our

Code of Conduct. Its aim is to promote a

culture of integrity, openness and honesty

while fostering compliance with legal

policies across the company. Alongside

generic modules and more targeted topics,

we also have several themes throughout the

year such as a Speak Up campaign and

awareness of ethics liaisons to highlight their

roles and the benefits they can bring in

resolving situations.

Expanding our global Ethics and Business

Integrity team

In 2024, we expanded our global Ethics and

Business Integrity team with additional

representation in South Korea (also covering

Japan), China and Veldhoven.

In addition, we continued to grow our

network of ethics liaisons to around 70

employees throughout the company and

introduced tailored sessions to raise

understanding of the importance of

enacting, upholding and embodying our

updated Code of Conduct. We also held

annual mandatory training for our ethics

liaisons which is conducted by an external

company to ensure we are maintaining a

level of best practice within the team.

Data privacy

We respect the privacy of individuals when

processing their personal data. We protect

personal data and manage it in line with our

Privacy Policy and in compliance with

applicable laws and regulations.

Read more in Strategic report – Corporate conduct –

Privacy and personal data protection

Resources

The resources needed for this action are

included in the Consolidated financial

statements in Selling, general and

administrative costs. They consist of our

annual RBA membership fee and personnel

costs for the colleagues executing the

activities (three to four FTEs). This holds an

associated cost of approximately €0.6

million yearly.

Looking ahead

Our ultimate goal is to continue to embed

ethical leadership within all layers of the

organization, drive a culture of ethical

standards and foster a sense of trust and

accountability. We will work closely with our

business partners in the Legal and

Compliance department in coming months

to reach out to stakeholders and help

achieve our goals of embedding ownership

of ethical leadership across the organization.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	328
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Anti-bribery and anti-corruption

Our scope

Anti-bribery and anti-corruption applies to all

decision-making within ASML, as well as

how we conduct business relationships both

upstream and downstream in the value

chain.

	Why it matters: Impacts, risks and<br><br>opportunities
	For anti-bribery and anti-corruption we<br><br>have identified the following:
	Impacts:
		Impact on people, the environment and<br><br>the supply chain through the<br><br>management of relationships with<br><br>suppliers
	Risks and opportunities:
		Failure to comply with regulations due<br><br>to increasing complexity as we expand<br><br>into more countries
F<br><br>a<br><br>i<br><br>l<br><br>u<br><br>r<br><br>e<br><br><br><br>t<br><br>o<br><br><br><br>c<br><br>o<br><br>m<br><br>p<br><br>l<br><br>y<br><br><br><br>w<br><br>i<br><br>t<br><br>h<br><br><br><br>r<br><br>e<br><br>g<br><br>u<br><br>l<br><br>a<br><br>t<br><br>i<br><br>o<br><br>n<br><br>s<br><br><br><br>d<br><br>u<br><br>e<br><br><br><br>t<br><br>o<br><br><br><br>i<br><br>n<br><br>c<br><br>r<br><br>e<br><br>a<br><br>s<br><br>i<br><br>n<br><br>g<br><br><br><br>c<br><br>o<br><br>m<br><br>p<br><br>l<br><br>e<br><br>x<br><br>i<br><br>t<br><br>y<br><br><br><br>a<br><br>s<br><br><br><br>w<br><br>e<br><br><br><br>e<br><br>x<br><br>p<br><br>a<br><br>n<br><br>d<br><br><br><br>i<br><br>n<br><br>t<br><br>o<br><br><br><br>m<br><br>o<br><br>r<br><br>e<br><br><br><br>c<br><br>o<br><br>u<br><br>n<br><br>t<br><br>r<br><br>i<br><br>e<br><br>s		Failure to comply with laws and<br><br>regulations for supply chain due<br><br>diligence
		Failure to comply with data privacy<br><br>regulations or breaches of data privacy
	Read more in Strategic report – Performance and<br><br>risk – Risk			Our targets and performance
---

If we are to demand the highest

standards of employees and suppliers, we

must go above and beyond in embodying

the same. We do not tolerate any form of

bribery or corruption.

We set out to ensure that anti-bribery and

anti-corruption compliance would remain an

important focus area across our global

operations, and in 2024 managed to

continue to increase awareness of our Anti-

Bribery and Anti-Corruption program – with

no convictions or fines against us or our

employees in these areas in the reporting

year. Substantiated breaches of anti-bribery

or anti-corruption procedures and standards

are generally followed up with corrective

actions, including disciplinary actions,

review and enhancement of internal controls

and policies, additional training or other

measures that aim to further promote a

culture of ethics and professional integrity.

Our actions and resources

Providing clear guidance on gifts and

entertainment

We have strict rules around the giving and

accepting of gifts and entertainment. Such

activities should never influence – or even

appear to influence – the integrity of our

business decisions and transactions, or the

loyalty of any of the parties involved.

We have been updating our Gifts &

Entertainment Policy – a key element in our

Compliance and Anti-Bribery and Anti-

Corruption programs, particularly in the rules

it sets around requests for prior approval for

particular categories of third-party gifts and

entertainment. Last year, we also launched

an associated set of tools as part of this

approval requirement, helping us capture a

register of given and accepted gifts or

entertainment and offering employees

further guidance about what to do next.

These additional processes ultimately help

to support compliance with the policy and

with applicable laws and regulations.

Read more in our Anti-Bribery and Anti-Corruption

Policy, which is publicly available at asml.com

Introducing our Conflicts of Interest

Policy

In 2024, we expanded our existing guidance

to introduce a Conflicts of Interest Policy as

part of our Compliance and Anti-Bribery and

Anti-Corruption programs. This policy, which

will be implemented in 2025, offers guidance

on what to do when a conflict of interest

arises, and requires employees – including

job candidates and new hires – to disclose

any actual, potential or perceived conflict of

interest. It also obligates people to avoid

taking actions in relation to the potential

conflict while the situation is still being

assessed.

Expanding our third-party risk

management efforts

Over the course of 2024, we continued to

expand our third-party risk management

(TPRM) efforts. As part of the TPRM

program, we are screening (potential)

vendors, customers and other types of third

parties to mitigate risks associated with

working with them, in line with our Code of

Conduct. This included intensifying

screening efforts on our supplier base,

investing in information and automation

capabilities, and further aligning our TPRM

governance with industry best practices.

In addition, we invested significantly in our

human rights due-diligence strategy,

working closely with the various responsible

teams.

Grievance mechanisms available to

employees

Employees seeking further guidance, or who

want to express worries regarding anti-fraud,

anti-bribery and anti-corruption (including

gifts, entertainment or conflicts of interests)

can do so via their manager, Human

Resources representative, ethics liaison, our

Ethics Office or through the Speak Up

Service, which is also available to third

parties.

Read more in our Speak Up and Non-retaliation

Policy, which is publicly available at asml.com

Looking ahead

We are constantly looking to enhance our

internal compliance system to adapt to

changes in the legal and our business

environment and to address bribery and

corruption risks identified through our annual

fraud risk assessment. We continue to work

closely with internal and external

stakeholders to further promote a culture of

personal and business integrity.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	329
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Metrics table

Topic	Description	Unit	2024
Governance
	Number of convictions for violation of anti-corruption and anti-bribery laws		0
	Monetary value of fines for violation of anti-corruption and anti-bribery laws	€	0
	Number of complaints filed through channels for own workforce		93
	Number of incidents of discrimination including harassment		60
	Monetary value of fines, penalties and compensation for damages as a result of complaints or incidents of discrimination including harassment	€	0
	Number of severe human rights incidents		0
	Monetary value of fines, penalties and compensations for damages as a result of severe human rights incidents	€	0

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	330
General disclosures	Environmental	Social	Governance
---	---	---	---

ESG integrated governance: Additional disclosures

Methodology on metrics

G1-4 Incidents of corruption or bribery

Violation of anti-corruption and anti-bribery laws

We report incidents of corruption or bribery that

have been found to be substantiated. Confirmed

incidents of corruption or bribery do not include

incidents that are still under investigation at the

end of the reporting period. The determination of

potential non-compliance cases as substantiated

may be made either by our compliance officer or

similar function or an authority. A determination

as substantiated by a court of law is not required.

S1-17 Incidents, complaints and severe human

rights impacts

Number of complaints filed through channels for own

workforce

This metric includes all Speak Up reports

received in the year, as received via our internal

channels for own workforce.

Complaints or incidents of discrimination including

harassment

We report complaints or incidents, related to

discrimination including harassment, registered

by:

•Our company through our Speak Up Service

•Competent authorities through a formal process

•An instance of non-compliance identified by us

through other established procedures which

can include management system audits or

formal monitoring programs

Severe human rights incidents

The severity of a human rights incident depends

on the assessment of the gravity, how

widespread it is and its remediability. As a result,

it is not possible to give one all-encompassing

definition, but 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

•ILO Declaration on Fundamental Principles and

Rights at Work

•UN Guiding Principles on Business and Human

Rights

•OECD Guidelines for Multinational Enterprises

As a result, all severe human rights incidents

reported are also cases of non-respect of these.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	331
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Financial

statements

	Consolidated financial statements
332	Report of independent registered public accounting firm
334	Consolidated statements of operations
335	Consolidated statements of comprehensive income
336	Consolidated balance sheets
337	Consolidated statements of shareholders’ equity
339	Consolidated statements of cash flows
340	Notes to the Consolidated financial statements
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	332
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Report of independent registered public accounting firm

To the Shareholders and Supervisory Board

ASML Holding NV:

Opinions on the Consolidated financial statements and internal control over financial reporting

We have audited the accompanying consolidated balance sheets of ASML Holding NV and subsidiaries (the

Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive

income, shareholders’ equity, and cash flows for each of the years in the three‑year period ended December 31,

2024, and the related notes (collectively, the consolidated financial statements). We also have audited the

Company's internal control over financial reporting as of December 31, 2024, based on criteria established in

Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the

Treadway Commission.

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, 2024 and 2023, and the results of its operations and its cash

flows for each of the years in the three‑year period ended December 31, 2024, in conformity with U.S. generally

accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective

internal control over financial reporting as of December 31, 2024 based on criteria established in Internal Control -

Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

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 the accompanying Management’s report on internal control over financial reporting. Our

responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the

Company’s internal control over financial reporting 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 audits 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 audits 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 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. 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

audits also included performing such other procedures as we considered necessary in the circumstances. We

believe that our audits provide 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 (1) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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 (3) 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 matter

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: (1)

relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our

especially challenging, subjective, or complex judgments. The communication of a critical audit matter 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	333
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Report of independent registered public accounting firm (continued)

Revenue recognition –  Identification of distinct performance obligations in certain volume purchase

agreements

As discussed in Note 2 to the consolidated financial statements, net system sales was EUR 21,769 million for the

year ended December 31, 2024. Sales of systems are usually entered into with customers under volume purchase

agreements (VPAs). These VPAs contain multiple performance obligations, including for example, delivery of goods,

installation, warranty and training.

We identified the evaluation of the distinct performance obligations identified by the Company in certain VPAs as a

critical audit matter. A high degree of auditor judgment was required in evaluating the Company’s identification of

distinct performance obligations in these VPAs.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the

design and tested the operating effectiveness of an internal control over the Company’s revenue recognition

process related to the identification of distinct performance obligations included in VPAs. We evaluated the

identification of distinct performance obligations in a selection of VPAs by obtaining and reading the VPA and the

underlying accounting analysis. Specifically, we evaluated the completeness and accuracy of the Company’s

identification of distinct performance obligations by considering terms, conditions and promises that were unique to

the selected contracts.

/s/ KPMG Accountants N.V.

We have served as the company’s auditor since 2015.

Amstelveen, the Netherlands

March 5, 2025

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	334
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Consolidated statements of operations

Year ended December 31 (€, in millions, except per share data)	Notes	2022	2023	2024
Net system sales		15,430.3	21,938.6	21,768.7
Net service and field option sales		5,743.1	5,619.9	6,494.2
Total net sales	2, 3	21,173.4	27,558.5	28,262.9
Cost of system sales		(7,582.3)	(10,151.0)	(10,406.9)
Cost of service and field option sales		(2,891.0)	(3,271.4)	(3,364.0)
Total cost of sales1		(10,473.3)	(13,422.4)	(13,770.9)
Gross profit		10,700.1	14,136.1	14,492.0
Research and development (R&D) costs		(3,253.5)	(3,980.6)	(4,303.7)
Selling, general and administrative (SG&A) costs		(945.9)	(1,113.2)	(1,165.7)
Income from operations		6,500.7	9,042.3	9,022.6
Interest and other, net	16	(44.6)	41.2	19.8
Income before income taxes		6,456.1	9,083.5	9,042.4
Income tax expense	21	(969.9)	(1,435.8)	(1,680.6)
Income after income taxes		5,486.2	7,647.7	7,361.8
Profit from equity method investments	9	138.0	191.3	209.8
Net income		5,624.2	7,839.0	7,571.6
Basic net income per ordinary share	23	14.14	19.91	19.25
Diluted net income per ordinary share	23	14.13	19.89	19.24
Number of ordinary shares used in computing per share amounts:
Basic	23	397.7	393.8	393.3
Diluted	23	398.0	394.1	393.6

1.Cost of sales includes amounts with related parties of €2,793.2 million, €2,854.5 million and €2,206.1 million in 2024, 2023 and 2022, respectively.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	335
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Consolidated statements of comprehensive income

Year ended December 31 (€, in millions)	Notes	2022	2023	2024
Net income		5,624.2	7,839.0	7,571.6
Other comprehensive income (OCI):
Proportionate share of OCI from equity method investments		37.7	0.2	(12.1)
Foreign currency translation, net of taxes:
Gain (loss) on foreign currency translation		66.0	(68.3)	91.9
Financial instruments, net of taxes:
Gain (loss) on derivative financial instruments		57.6	(15.8)	38.2
Transfers to net income	25	(66.5)	0.6	(8.9)
Other comprehensive income, net of taxes		94.8	(83.3)	109.1
Total comprehensive income, net of taxes		5,719.0	7,755.7	7,680.7
Attributable to equity holders		5,719.0	7,755.7	7,680.7
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	336
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Consolidated balance sheets

As of December 31 (€, in millions, except share and per share data)	Notes	2023	2024
Assets
Cash and cash equivalents	4	7,004.7	12,735.9
Short-term investments	4	5.4	5.4
Accounts receivable, net1	5	4,334.1	4,477.5
Finance receivables, net	6	1,379.2	82.6
Current tax assets	21	1,001.2	283.6
Contract assets	2	240.1	320.6
Inventories, net	7	8,850.7	10,891.5
Other assets2	8	1,578.5	1,940.3
Total current assets		24,393.9	30,737.4
Finance receivables, net	6	60.6	317.2
Deferred tax assets	21	1,872.3	1,940.7
Loans receivable3	26	929.2	1,456.6
Other assets4	8	651.8	790.8
Equity method investments	9	919.6	903.0
Goodwill	11	4,588.6	4,588.6
Other intangible assets, net	12	741.7	621.3
Property, plant and equipment, net	13	5,493.2	6,846.8
Right-of-use assets	14	306.6	387.2
Total non-current assets		15,563.6	17,852.2
Total assets		39,957.5	48,589.6
As of December 31 (, in millions, except share and per share data)	2023	2024
---	---	---
Liabilities and shareholders’ equity
Accounts payable5	2,347.3	3,500.4
Accrued and other liabilities6	2,177.4	2,686.6
Current tax liabilities	308.9	283.3
Current portion of long-term debt	0.1	1,010.3
Contract liabilities	11,441.0	12,570.8
Total current liabilities	16,274.7	20,051.4
Long-term debt	4,631.5	3,677.3
Deferred and other income tax liabilities	372.2	299.2
Contract liabilities	4,825.5	5,625.4
Accrued and other liabilities	401.2	459.5
Total non-current liabilities	10,230.4	10,061.4
Total liabilities	26,505.1	30,112.8
Ordinary shares; 0.09 nominal value;
700,000,000 shares authorized at December 31, 2024 (2023: 700,000,000)
393,283,720 issued and outstanding at December 31, 2024 (2023: 393,421,721)
Issued and outstanding shares	36.0	35.4
Share premium	3,998.1	4,049.0
Treasury shares at cost	(3,306.2)	(476.0)
Retained earnings	12,379.5	14,414.3
Accumulated other comprehensive income	345.0	454.1
Total shareholders’ equity	13,452.4	18,476.8
Total liabilities and shareholders’ equity	39,957.5	48,589.6

All values are in Euros.

1.Accounts receivable includes amounts with related parties of €70.8 million and €7.8 million at December 31, 2024 and

2023

, respectively.

2.Other assets – current includes amounts with related parties of €815.8 million and €691.9 million at December 31, 2024 and

2023

, respectively.

3.Loans receivable includes amounts with related parties of €1,440.8 million and €912.4 million at December 31, 2024 and 2023, respectively.

4.Other assets – non-current includes amounts with related parties of €599.9 million and €490.8 million at December 31, 2024 and

2023

, respectively.

5.Accounts payable includes amounts with related parties of €955.8 million and €4.0 million at December 31, 2024 and

2023

, respectively.

6.Accrued and other liabilities – current includes amounts with related parties of €199.9 million and €199.9 million at December 31, 2024 and

2023

,

respectively.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	337
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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, 2022	402.6	36.5	3,876.1	(2,422.8)	8,317.3	333.5	10,140.6
Components of comprehensive income:
Net income	—	—	—	—	5,624.2	—	5,624.2
Proportionate share of OCI from equity method investments	—	—	—	—	—	37.7	37.7
Gain (loss) on foreign currency translation	—	—	—	—	—	66.0	66.0
Gain (loss) on financial instruments	—	—	—	—	—	(8.9)	(8.9)
Total comprehensive income	—	—	—	—	5,624.2	94.8	5,719.0
Purchase of treasury shares	(8.5)	—	—	(4,639.7)	—	—	(4,639.7)
Cancellation of treasury shares	—	(0.3)	—	2,333.7	(2,333.4)	—	—
Share-based payments	—	—	68.9	—	—	—	68.9
Issuance of shares	0.5	0.1	(4.2)	87.5	(1.6)	—	81.8
Dividend paid	—	—	—	—	(2,559.8)	—	(2,559.8)
Balance at December 31, 2022	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

All values are in Euros.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	338
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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, 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.

1.As of December 31, 2024, accumulated OCI consists of €20.9 million gain relating to our proportionate share of other comprehensive income from equity method investments (2023: €33.0 million gain; 2022: €32.8 million gain), €411.5 million relating to foreign currency translation gain (2023:

€319.6 million gain; 2022: €387.9 million gain) and €21.7 million relating to unrealized gain on financial instruments (2023: €7.6 million loss; 2022: €7.6 million gain).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	339
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Consolidated statements of cash flows

Year ended December 31 (€, in millions)	Notes	2022	2023	2024
Cash flows from operating activities
Net income		5,624.2	7,839.0	7,571.6
Adjustments to reconcile net income to net cash flows from<br><br>operating activities:
Depreciation and amortization1	12, 13	583.6	739.8	918.6
Impairment and loss on disposal	12, 13	39.3	37.5	35.8
Share-based compensation expense	18, 20	68.9	134.8	172.6
Inventory reserves	7	278.5	485.3	554.7
Deferred tax expense (benefit)	21	(564.2)	(133.6)	(144.8)
Equity method investments2	9	15.3	4.2	4.4
Changes in assets and liabilities:
Accounts receivable, net	5	(2,338.0)	959.9	(139.9)
Finance receivables, net	6	212.2	(88.6)	1,038.7
Inventories	7	(2,080.9)	(1,646.9)	(1,860.9)
Other assets	8	(864.3)	(344.3)	(1,299.0)
Accrued and other liabilities	15	439.7	222.0	625.5
Accounts payable		406.2	(261.7)	1,127.6
Current tax assets and liabilities	21	33.6	(939.4)	689.5
Contract assets and liabilities	2	6,632.7	(1,564.6)	1,871.8
Net cash provided by operating activities		8,486.8	5,443.4	11,166.2
Cash flows from investing activities
Purchase of property, plant and equipment3	13	(1,281.8)	(2,155.6)	(2,067.2)
Purchase of intangible assets	12	(37.5)	(40.6)	(15.9)
Purchase of short-term investments	4	(334.3)	(23.6)	(305.2)
Maturity of short-term investments	4	864.7	125.6	305.2
Loans issued and other investments4	26	(240.0)	(561.5)	(526.2)
Acquisition of subsidiaries (net of cash acquired)	10	—	(33.6)	—
Net cash used in investing activities		(1,028.9)	(2,689.3)	(2,609.3)		Year ended December 31 (€, in millions)	Notes	2022	2023	2024
---	---	---	---	---
Cash flows from financing activities
Dividend paid	22	(2,559.8)	(2,348.3)	(2,452.9)
Purchase of treasury shares	22	(4,639.7)	(1,000.0)	(500.0)
Net proceeds from issuance of shares	20	81.8	99.4	124.0
Net proceeds from issuance of notes, net of issuance costs	16	495.6	997.8	22.5
Repayment of debt and finance lease obligations	14, 16	(516.2)	(752.8)	(25.7)
Net cash used in financing activities		(7,138.3)	(3,003.9)	(2,832.1)
Net cash flows		319.6	(249.8)	5,724.8
Effect of changes in exchange rates on cash		(3.1)	(13.8)	6.4
Net increase (decrease) in cash and cash equivalents		316.5	(263.6)	5,731.2
Cash and cash equivalents at beginning of the year	4	6,951.8	7,268.3	7,004.7
Cash and cash equivalents at end of the year	4	7,268.3	7,004.7	12,735.9
Supplemental disclosures of cash flow information
Unpaid portion of property, plant and equipment, excluded in<br><br>investing activities, included in accounts payable		50.3	49.3	23.6
Interest received		42.4	190.8	169.5
Interest paid		(82.2)	(137.8)	(160.0)
Income taxes paid, net of refunds		(1,734.6)	(2,568.3)	(1,098.0)

1.Depreciation and amortization include depreciation of property, plant and equipment, amortization of intangible assets, amortization of

underwriting commissions, and discount related to the bonds and credit facility.

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 €225.4 million (2023: €218.0

million; 2022: €178.7 million).

3.Purchase of property, plant and equipment includes a cash outflow of €0.0 million (2023: €45.1 million; 2022: €33.8 million) to related parties.

4.Loans issued and other investments includes a cash outflow of €528.4 million (2023: €548.0 million, 2022: €240.0 million) to related parties,

which is partly offset with other repayments.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	340
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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 full-time 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. We believe that the critical

accounting estimates and assumptions are appropriate. 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 significant judgments and estimates in

the preparation of our Consolidated financial statements. Our most critical accounting estimates relate to revenue

recognition (see Note 2 Revenue from contracts with customers). Although still considered an accounting estimate,

the recoverability of deferred tax assets for capitalized R&D costs is no longer considered a critical accounting

estimate. This is as the majority of our R&D expenses at US level are no longer eligible for capitalization for tax

purposes, resulting now in the related deferred tax asset balance decreasing over time due to amortization.

Principles of consolidation

The Consolidated financial statements include the Financial statements of ASML Holding NV 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

During 2024, there were no new US GAAP accounting pronouncements that were adopted which have a material

impact on our Consolidated financial statements.

New US GAAP accounting pronouncements issued but not adopted

For 2024, there are no new US GAAP accounting pronouncements issued which have not yet been adopted and are

expected to have a material impact on our Consolidated financial statements.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	341
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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. 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	342
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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;

or

•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. 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 payment<br><br>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 as<br><br>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 system meets its standard<br><br>specifications and any additional technical and performance criteria agreed with the<br><br>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 acceptance<br><br>test (SAT) after installation at the customer site. We have never failed to successfully<br><br>complete installation of a system at a customer’s premises; therefore, acceptance at<br><br>FAT is considered to be proven for established technologies with a history of successful<br><br>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 occasionally repurchase systems that we previously manufactured and<br><br>sold, in 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’.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	343
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Goods or services	Nature, timing of satisfying the performance obligations and significant payment<br><br>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. This<br><br>is generally based on either the cost incurred method, which is estimated using labor<br><br>hours, or the value transferred method, which is estimated using system performance<br><br>measurements. For the options and other upgrades for which the customer receives<br><br>and consumes the benefit at the moment of delivery, the transfer of control and<br><br>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, if<br><br>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, no<br><br>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 payment<br><br>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 of<br><br>this performance obligation is performed through an input method based on the labor<br><br>hours expended relative to the estimated total labor hours, as this best depicts the<br><br>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-service<br><br>agreements, limited manpower agreements, other labor agreements, parts availability or<br><br>parts usage agreements. These services are for a specified period of time and typically<br><br>have a fixed price. Control transfers over this period of time, measured on a straight-line<br><br>basis, as these are stand-ready obligations. For service contracts where the price is not<br><br>fixed, the transaction price has a variable component that is based on the performance<br><br>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.
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	344
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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	2022		2023		2024
	in units	in € millions	in units	in € millions	in units	in € millions
EXE	—	—	—	—	2	465.0
NXE	40	7,045.3	53	9,124.0	42	7,856.4
ArF immersion	81	5,236.5	125	9,017.4	129	9,667.0
ArF dry	28	623.7	32	780.2	28	774.4
KrF	151	1,653.7	184	2,202.5	152	1,991.2
I-line	45	211.5	55	278.4	65	369.2
Metrology & Inspection	216	659.6	151	536.1	165	645.5
Total	561	15,430.3	600	21,938.6	583	21,768.7

Net system sales per end-use were as follows:

Year ended December 31	2022		2023		2024
	in units	in € millions	in units	in € millions	in units	in € millions
Logic	357	9,977.6	439	15,984.7	399	13,195.1
Memory	204	5,452.7	161	5,953.9	184	8,573.6
Total	561	15,430.3	600	21,938.6	583	21,768.7

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)	2023		2024
	Contract assets	Contract liabilities	Contract assets	Contract liabilities
Balance at beginning of the year	131.9	17,750.9	240.1	16,266.5
Transferred from contract assets to accounts<br><br>receivables	(402.0)	—	(213.2)	—
Revenue recognized during the year ending in<br><br>contract assets	135.1	—	275.9	—
Revenue recognized that was included in contract<br><br>liabilities	—	(11,106.1)	—	(9,047.5)
Changes as a result of cumulative catch-up<br><br>adjustments arising from changes in estimates	—	(24.9)	—	(61.3)
Remaining performance obligations for which<br><br>considerations have been received, or for which we<br><br>have an unconditional right to consideration	—	9,416.3	—	11,483.4
Transfer between contract assets and liabilities	375.1	375.1	17.8	17.8
Other	—	(144.8)	—	(462.7)
Total	240.1	16,266.5	320.6	18,196.2
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	345
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The increase in the net contract liabilities to €17.9 billion as of December 31, 2024, compared to €16.0 billion as of

December 31, 2023, is mainly driven by systems shipped for which revenue has not yet been recognized, as well as

an increase in 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 2023, is mainly due

to an increase of down payments reclassified to refund liabilities. Refund liabilities 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, 2024, the remaining performance obligations amount to €43.3 billion (December 31, 2023:

€45.0 billion). The remaining performance obligations mainly include orders related to DUV immersion, NXE and EXE

lithography systems. We estimate that 59% (December 31, 2023: 57%) 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 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)	2022	2023	2024
New systems	15,152.3	21,622.4	21,139.7
Used systems	278.0	316.2	629.0
Net system sales	15,430.3	21,938.6	21,768.7

For geographical reporting, total net sales are attributed to the geographic location in which the customers’ facilities

are located. Long-lived 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)	2022		2023		2024
	Total net sales	Long-lived assets	Total net sales	Long-lived assets	Total net sales	Long-lived assets
Japan	1,008.6	7.9	613.6	10.4	1,156.0	16.0
South Korea	6,045.6	85.4	6,949.2	148.1	6,408.8	241.6
Singapore	475.5	5.5	282.1	5.0	285.0	4.3
Taiwan	8,095.5	216.3	8,074.6	354.5	4,354.0	473.8
China	2,916.0	40.8	7,251.8	48.6	10,195.1	72.7
Rest of Asia	7.2	0.2	3.9	0.2	3.5	0.1
Netherlands	9.2	2,748.5	25.1	3,783.6	16.6	4,621.4
EMEA	624.5	228.5	1,206.8	314.5	1,322.1	443.1
United States	1,991.3	803.8	3,151.4	1,134.9	4,521.8	1,361.0
Total	21,173.4	4,136.9	27,558.5	5,799.8	28,262.9	7,234.0

In 2024, four customers exceeded more than 10% of total net sales, totaling €15.2 billion, or 53.8%, of total net

sales. In 2023 and 2022, two customers exceeded more than 10% of total net sales, in 2023 totaling €14.9 billion, or

53.9% (2022: €11.8 billion, or 55.8%). Our three largest customers (based on total net sales) accounted for €2.6

billion, or 54.1%, of accounts receivable and finance receivables at December 31, 2024, compared with €3.7 billion,

or 64.4%, at December 31, 2023 and €5.3 billion, or 78.6%, at December 31, 2022.

The increase in total net sales of €0.7 billion, or 2.6%, to €28.3 billion in 2024, from €27.6 billion in 2023 is mainly

driven by the first EXE systems being successfully installed in the field, increased DUV immersion system shipments

and higher net service and field option sales. This was partially offset by lower NXE sales due to fewer NXE capacity

additions by our customers.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	346
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The increase in net service and field option sales is mainly driven by higher service sales, which has benefited from

a growing installed base and higher lithography tool utilization levels at certain customers.

The Logic sector experienced a slower ramp of new nodes at some customers, leading to multiple fab push-outs

and changes in the timing of demand. The Memory sector was stronger in 2024 due to technology transitions

driven by artificial intelligence (AI)-related Memory demand. China saw the largest absolute geographic sales

growth in support of expanding capacity to meet worldwide demand and was able to catch up on the backlog of

orders that were previously unfulfilled due to supply constraints.

The increase in long-lived assets in the Netherlands during 2024 is primarily related to the construction of factory

and research facility expansions and office space at our headquarters in Veldhoven, in order to support our

continued growth. In the US the increase is primarily related to the expansion of the Wilton factory site.

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 one year or less 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 insignificant interest rate risk.

Cash and cash equivalents and short-term investments consist of the following:

Year ended December 31 (€, in millions)	2023	2024
Deposits with financial institutions, governments and government-related bodies	1,348.7	4,850.4
Investments in money market funds	3,167.4	6,379.2
Bank accounts	2,488.6	1,506.3
Cash and cash equivalents	7,004.7	12,735.9
Deposits with financial institutions, governments and government-related bodies	5.4	5.4
Short-term investments	5.4	5.4

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, 2024, no restrictions on usage of cash and cash equivalents exist (2023: 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 legal transfer of control over the receivable.

Accounts receivable consist of the following:

Year ended December 31 (€, in millions)	2023	2024
Accounts receivable, gross	4,334.1	4,477.5
Allowance for credit losses	—	—
Accounts receivable, net	4,334.1	4,477.5

The increase in accounts receivable as of December 31, 2024, compared to December 31, 2023, is mainly due to

the timing of cash receipts from our customers, which is partially offset by increased factoring of receivables.

In

2024

, €2,042.7 million of receivables were sold through factoring arrangements (2023: €993.4 million). The

amounts consist of €1,639.9 million (2023: €245.8 million) of regular trade receivables and €402.8 million (2023:

€747.6 million) of absolute, unconditional, irrevocable accounts receivable for down payments on systems to be

shipped in 2025 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	347
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

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, 2024 and 2023:

Year ended December 31 (€, in millions)	2023	2024
Finance receivables, gross	1,439.8	399.8
Unearned interest	—	—
Finance receivables, net	1,439.8	399.8
Current portion of finance receivables, gross	1,379.2	82.6
Current portion of unearned interest	—	—
Non-current portion of finance receivables, net	60.6	317.2

The decrease in finance receivables as of December 31, 2024, compared to December 31, 2023, is the result of

systems being purchased at the end of their free-use or evaluation periods, partially offset by additional systems

shipped with a free-use or evaluation period. These sales-type leases 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 €114.3

million during 2024 (2023: €460.9 million; 2022: €429.1 million).

At December 31, 2024, payments of the finance receivables in the next five years and thereafter are:

(€, in millions)	Amount
2025	82.6
2026	317.2
2027	—
2028	—
2029	—
Thereafter	—
Finance receivables, gross	399.8

In 2024, 2023 and 2022 we did not record any expected credit losses from finance receivables. As of December 31,

2024, the finance receivables were neither past due nor impaired.

7. Inventories, net

Accounting policy

Inventory costs are computed on a 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 provisions 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.

Inventories consist of the following:

Year ended December 31 (€, in millions)	2023	2024
Raw materials	4,057.3	4,911.2
Work-in-process	3,388.1	4,872.3
Finished products	2,098.5	2,019.5
Inventories, gross	9,543.9	11,803.0
Inventory reserves	(693.2)	(911.5)
Inventories, net	8,850.7	10,891.5

The increase in inventory in 2024, compared to 2023, is mainly driven by the introduction of EXE. Additionally,

inventory increased in 2024 due to higher costs and longer cycle times of our latest technologies and growing install

base.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	348
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

A summary of movements in the inventory reserves is as follows:

Year ended December 31 (€, in millions)	2023	2024
Balance at beginning of year	(466.9)	(693.2)
Additions for the year	(485.3)	(554.7)
Effect of changes in exchange rates	2.4	(1.7)
Utilization of the reserve	256.6	338.1
Balance at end of year	(693.2)	(911.5)

The additions for

2024

,

2023

and 2022 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)	2023	2024
Advance payments to Carl Zeiss SMT GmbH1	691.9	815.8
Prepaid expenses	472.1	555.5
Derivative financial instruments2	19.8	96.5
VAT receivable	302.2	279.1
Other assets	92.5	193.4
Other current assets	1,578.5	1,940.3
Advance payments to Carl Zeiss SMT GmbH1	490.8	599.9
Prepaid expenses	40.9	49.5
Derivative financial instruments2	11.3	—
Compensation plan assets	95.2	113.1
Other assets	13.6	28.3
Other non-current assets	651.8	790.8

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 €380.1 million (2023: €324.5 million).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	349
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

9. 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 12.1 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, 2024, we recorded a profit from Equity method investments of €209.8 million

(2023: €191.3 million) in our Consolidated statements of operations. This profit includes the following components:

•Profit of €216.4 million (2023: €212.1 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 €27.4 million (2023: €26.7 million)

•Cost/(Gain) due to intercompany profit elimination of €(20.8) million (2023: €(5.9) million)

In 2024, we received a dividend of €225.4 million (2023: €218.0 million) from Carl Zeiss SMT Holding GmbH

& Co. KG.

Carl Zeiss SMT Holding GmbH & Co. KG is a privately held company; therefore, quoted market prices for its stock

are not available.

10. Business combinations and divestitures

Accounting policy

Acquisitions of subsidiaries are included on the basis of the acquisition method. The cost of acquisition is measured

based on the consideration transferred at fair value, the fair value of identifiable assets distributed and the fair value

of liabilities incurred or assumed at the acquisition date (i.e. the date on which we obtain control). Goodwill is

capitalized as the excess of the costs of an acquired subsidiary, net of the amounts assigned to identifiable assets

acquired and liabilities incurred or assumed. Acquisition-related costs are expensed when incurred in the period in

which they arise or the service is received.

Business combinations

During 2023 we concluded the acquisition of EO Technical Solutions, LLC, which functions as a parts repair and

rebuild services company. In 2023, we also acquired part of the semiconductor equipment activities from Philips

Engineering Solutions. The total related goodwill of €33.0 million has been allocated to the ASML reporting unit.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	350
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

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 results from the acquisitions of Cymer and HMI. The balance as of December 31, 2024, is €4,588.6

million (2023: €4,588.6 million).

We have identified two reporting units: Reporting Unit ASML and Reporting Unit Cymer Light Sources. As of

December 31, 2024, the goodwill allocated to Reporting Unit ASML amounts to €4,126.3 million (2023: €4,126.3

million) and Reporting Unit Cymer Light Sources amounts to €462.3 million (2023: €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, 2024. The accumulated impairment as of December 31, 2024, is nil (2023: 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 2024	351
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

As of December 31, 2024, intangible assets consist mainly of brands, intellectual property, developed technology and customer relationships obtained from the acquisitions of HMI (2016) and Cymer (2013):

€, in millions	Brands	Intellectual<br><br>property	Developed<br><br>technology	Customer<br><br>relationships	Other	Total
Cost
Balance at January 1, 2023	38.9	147.1	1,220.2	228.6	222.5	1,857.3
Additions	—	—	—	—	39.3	39.3
Disposals	—	—	—	—	(0.3)	(0.3)
Effect of changes in exchange rates	—	—	—	—	(1.4)	(1.4)
Balance at December 31, 2023	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
Accumulated amortization
Balance at January 1, 2023	14.9	95.8	677.4	121.3	105.5	1,014.9
Amortization	1.9	8.3	76.8	12.7	27.9	127.6
Impairment charges	—	—	—	—	11.1	11.1
Disposals	—	—	—	—	(0.3)	(0.3)
Effect of changes in exchange rates	—	—	—	—	(0.1)	(0.1)
Balance at December 31, 2023	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
Carrying amount
December 31, 2023	22.1	43.0	466.0	94.6	116.0	741.7
December 31, 2024	20.2	34.7	391.5	82.0	92.9	621.3
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	352
---	---	---	---	---	---
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)	2022	2023	2024
Cost of sales	105.9	102.7	103.8
R&D costs	18.2	19.5	20.8
SG&A	11.0	5.4	1.4
Total amortization	135.1	127.6	126.0

As of December 31, 2024, the intangible assets not yet available for use, as included in Other, amount to

€11.8

million (

2023

: €37.3 million) and are allocated to Reporting Unit ASML.

As of December 31, 2024, the estimated amortization expenses for intangible assets for the next five years and

thereafter are as follows:

€, in millions	Amount
2025	123.4
2026	118.1
2027	115.1
2028	94.4
2029	61.7
Thereafter	108.6
Total	621.3

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 2024	353
---	---	---	---	---	---
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, 2023	3,314.0	2,777.6	400.8	497.0	6,989.4
Additions	1,019.3	1,050.2	79.7	94.4	2,243.6
Disposals	(1.6)	(45.1)	(0.8)	(2.1)	(49.6)
Net non-cash movements to/from Inventories	—	(75.3)	—	—	(75.3)
Effect of changes in exchange rates	(8.3)	(17.4)	(1.2)	(1.4)	(28.3)
Balance at December 31, 2023	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
Accumulated depreciation and impairment
Balance at January 1, 2023	1,090.6	1,312.3	331.9	310.4	3,045.2
Depreciation	154.2	352.0	31.0	68.4	605.6
Impairment charges	2.9	15.0	—	—	17.9
Disposals	(0.6)	(37.7)	(0.7)	(2.0)	(41.0)
Net non-cash movements to/from Inventories	—	(29.3)	—	—	(29.3)
Effect of changes in exchange rates	(4.0)	(6.7)	(0.7)	(0.4)	(11.8)
Balance at December 31, 2023	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
Carrying amount
December 31, 2023	3,080.3	2,084.4	117.0	211.5	5,493.2
December 31, 2024	4,028.6	2,409.6	194.0	214.6	6,846.8
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	354
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

As of December 31, 2024, the carrying amount includes assets under construction of €1,729.7 million (2023:

€1,658.0 million) primarily consisting of buildings, as well as machinery and equipment.

As of December 31, 2024, the carrying amount of land amounts to €304.3 million (2023: €229.7 million).

The additions in

2024

in Land and buildings, as well as Furniture, fixtures and other mainly relate to the construction

of factory and research facility expansions and office space at our headquarters in Veldhoven, in order to support

our continued growth.

The additions in

2024

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

2024

in Leasehold improvements mainly relate to installation of cleanrooms and office space for

leased properties in both the US and Berlin.

The Consolidated statements of operations include the following depreciation charges:

Year ended December 31 (€, in millions)	2022	2023	2024
Cost of sales	248.2	330.4	398.4
R&D costs	163.7	236.2	340.5
SG&A	33.3	39.0	48.4
Total depreciation	445.2	605.6	787.3

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)	2023	2024
Properties	270.3	333.7
Cars	5.4	7.6
Warehouses	30.3	42.6
Other	0.6	3.3
Right-of-use assets	306.6	387.2

ASML owns the majority of real estate we utilize 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 leased. The total right-of-use assets related to properties includes a new finance lease

arrangement for land of €32 million.

The right-of-use assets increased in 2024 compared to 2023 mainly due to new land and warehouse leases and

extensions of existing leases.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	355
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Lease liabilities are split between current and non-current. The non-current portion mainly consists of properties and

warehouses and is presented as part of Accrued and other liabilities. For the year ended December 31, 2024, Lease

liabilities increased by €78.1 million, mainly due to lease extensions and new leases of properties that commenced

during 2024, of which €16.9 million relates to a finance lease.

Year ended December 31 (€, in millions)	2023	2024
Current	46.7	68.6
Non-current	181.2	237.4
Lease liabilities	227.9	306.0

The Consolidated statements of operations include the following lease expenses:

Year ended December 31 (€, in millions)	2022	2023	2024
Properties	52.3	40.4	50.2
Cars	2.7	5.9	6.1
Warehouses	4.0	5.9	15.0
Other	1.4	0.8	2.2
Lease expenses	60.4	53.0	73.5

The total cash flows relating to the leases are as follows:

Year ended December 31 (€, in millions)	2022	2023	2024
Total cash flows	57.9	148.2	96.3

The total cash flow decreased in 2024 compared to 2023 due to fewer prepayments of new land leases in 2024

compared to 2023.

The weighted average remaining lease term and weighted average discount rate related to the leases are as follows:

Year ended December 31 (€, in millions)	2022	2023	2024
Weighted average remaining lease term (months)	67	365	296
Weighted average discount rate (%)	2.2%	2.5%	3.0%

The weighted average remaining lease term increased in 2023 due to a new land lease which has a lease term of 70

years. In 2024 the weighted average remaining lease term decreased due to new land lease additions with shorter

lease terms compared to 2023.

15. Accrued and other liabilities

Accrued and other liabilities consist of the following:

Year ended December 31 (€, in millions)	2023	2024
Costs to be paid1	632.7	536.1
Personnel-related items	1,328.5	1,599.6
Derivative financial instruments2	156.7	113.6
Lease liabilities3	227.2	306.0
Provisions	76.7	100.8
Standard warranty reserve	142.3	158.9
Refund liability	—	309.4
Other	14.5	21.7
Accrued and other liabilities	2,578.6	3,146.1
Less: non-current portion of accrued and other liabilities	401.2	459.5
Current portion of accrued and other liabilities	2,177.4	2,686.6

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 liability 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, 2024, include VAT

payables and accrued costs for unbilled services provided by suppliers, including contracted labor, outsourced

services and consultancy.

Personnel-related items mainly consist of accrued annual short-term incentive (STI) bonus plans, accrued vacation

days, accrued pension premiums, accrued wage tax and accrued vacation allowance. The increase in the accrued

personnel-related items compared to prior year is primarily attributable to an increase in the number of FTEs, higher

wages and related cost, to support the continued growth of our business.

The refund liability represents the amount of consideration received from customers that ASML does not expect to

be entitled to. Refund liabilities do not meet the definition of a contract liability.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	356
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 changes in standard warranty reserve for the

years 2024 and 2023 are as follows:

Year ended December 31 (€, in millions)	2023	2024
Balance at beginning of year	143.6	142.3
Additions for the year	232.2	210.0
Utilization of the reserve	(233.3)	(193.5)
Effect of exchange rates	(0.2)	0.1
Balance at end of year	142.3	158.9

16. Long-term debt and interest and other costs

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.

Interest accruals and payments relating to long-term debt are accounted for as part of Accrued and other liabilities.

Interest and other costs should be accrued and recorded with the passage of time over the agreed term, regardless

of when the interest receipt or payment has taken place.

Long-term debt consists of the following (amounts for bonds represent carrying amount, not the principle amount):

Year ended December 31 (€, in millions)	2023	2024
€1,000 million 1.375% senior notes issued July 2016 and principal due July 7th 2026<br><br>interest annually payable on July 7th	936.8	967.7
€750 million 1.625% senior notes issued November 2016 and principal due May 28th<br><br>2027 interest annually payable on May 28th	701.3	720.1
€750 million 0.250% senior notes issued February 2020 and principal due February 25th<br><br>2030 interest annually payable on February 25th	743.7	744.8
€750 million 0.625% senior notes issued May 2020 and principal due May 7th 2029<br><br>interest annually payable on May 7th	747.9	748.3
€500 million 2.250% senior notes issued May 2022 and principal due May 17th 2032<br><br>interest annually payable on May 17th	472.1	478.2
€1,000 million 3.500% senior notes issued June 2023 and principal due December 6th<br><br>2025 interest annually payable on December 6th	1,008.6	1,010.3
Debt acquired from Berliner Glas (ASML Berlin GmbH)	20.5	18.2
Other	0.7	—
Long-term debt	4,631.6	4,687.6
Less: current portion of long-term debt	0.1	1,010.3
Non-current portion of long-term debt	4,631.5	3,677.3

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	357
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Our obligations to make principal repayments under our senior notes and other borrowing arrangements excluding

interest expense as of December 31, 2024, are as follows:

€, in millions	Amount
2025	1,001.8
2026	1,001.8
2027	751.8
2028	1.8
2029	751.8
Thereafter	1,259.1
Total debt maturities	4,768.1

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:

Year ended December 31 (€, in millions)	2023	2024
Amortized cost amount	4,731.7	4,736.9
Fair value interest rate swaps1	(121.3)	(67.5)
Carrying amount	4,610.4	4,669.4

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)	2023	2024
Principal amount	4,750.0	4,750.0
Carrying amount	4,610.4	4,669.4
Fair value1	4,496.2	4,561.8

1.Source: Bloomberg Finance LP.

The fair value of our Eurobonds is estimated based on quoted market prices as of December 31, 2024. 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 €18.2 million with an annual interest rate of

0.5%, repayable in 2034. Debt decreased compared to

2023

, due to repayments made in

2024

.

Lines of credit

We maintain an available committed credit facility of €1,500.0 million as of December 31, 2024 (2023: €700.0

million), with a group of banks. No amounts were outstanding under the committed credit facility at the end of

2024

and

2023

. This facility has a maturity date of May 2029 with two one year uncommitted extension options on the

first and second anniversary of the facility (extending the maturity potentially to 2031). 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 €2.75 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, 2024 amounts of €44.1 million (2023: €46.9 million), JPY 4,825.0

million (2023: JPY nil) and TWD 553.7 million (2023: TWD nil ) were utilized under these facilities.

In 2024 ASML entered into a €1.5 billion Euro Commercial Paper (ECP) program. The program allows ASML to issue

commercial paper up to

364

days in tenor, in a number of currencies. As of December 31, 2024, there is no

commercial paper outstanding under this program.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	358
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Interest and other, net

Interest and other, net consists mainly of interest income and interest expenses. In 2024, the interest income

component is €182.4 million (

2023

: €193.9 million;

2022

: €16.2 million). Income mainly relates to interest income on

cash and cash equivalents. In 2024, the interest expense component is €162.6 million (

2023

: €152.7 million;

2022

:

€60.8 million). The expenses mainly relate to interest expense on our Eurobonds and interest rate swaps.

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- and short-term debt and lease commitments. Other contractual obligations, namely

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, 2024, 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 obligations, including interest1	5.0	1.1	1.0	0.8	—	0.8	1.3
Lease obligations2	0.3	0.1	0.1	—	—	—	0.1
Purchase obligations	13.3	9.9	2.2	0.8	0.2	0.1	0.1
Total contractual obligations	18.6	11.1	3.3	1.6	0.2	0.9	1.5

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 and interest and other costs.

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,

2024, 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 a 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

it 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, 2024, 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	359
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)	2022	2023	2024
Wages and salaries	3,502.5	4,447.0	5,001.2
Social security expenses	300.7	410.5	468.4
Pension and retirement expenses	255.9	348.9	395.2
Share-based payments	68.9	134.8	172.6
Personnel expenses	4,128.0	5,341.2	6,037.4

The continued increase in personnel expenses is primarily attributable to an increase in the number of FTEs, higher

wages and related cost, to support the continued growth of our business.

The average number of payroll employees in FTEs was:

Average number of payroll employees in FTEs	2022	2023	2024
Netherlands	16,722	19,876	21,811
Worldwide (including Netherlands)	33,071	38,805	41,697

The total number of payroll and temporary employees as of December 31 in FTE per sector was:

Year ended December 31 (in FTE)	2022	2023	2024
Customer Support and Sales	9,643	10,790	10,344
Manufacturing and Supply Chain Management	9,953	9,954	11,341
Strategic Supply Management	1,541	2,033	1,965
General and Administrative	3,768	4,035	4,385
Research and Development	14,181	15,604	15,992
Total	39,086	42,416	44,027
Less: Temporary employees	2,974	2,107	1,241
Payroll employees	36,112	40,309	42,786

Short-term incentive bonus plans

We have annual performance-related STI bonus plans for our employees. Under these plans, the employee bonus

payout depends on the employee’s job grade, the type of bonus plan and the company/individual performance. The

employee bonus payout (excluding the Board of Management) ranges between 0% and 126% of their annual base

gross salary. The 2024 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 2025.

The STI bonus expenses for the (former) Board of Management and other employees were as follows:

Year ended December 31 (€, in millions)	2022	2023	2024
Board of Management	3.8	6.0	5.3
Former Board of Management1	—	—	1.0
Other employees	629.6	712.6	816.8
Total STI bonus expenses	633.4	718.6	823.1

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	360
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, 2024, 2023 and 2022,

were:

Year ended December 31 (€, in millions)	2022	2023	2024
Pension plan based on multi-employer union plan	181.2	244.4	276.3
Pension plans based on defined contribution and other plans	74.7	104.5	118.9
Pension and retirement expenses	255.9	348.9	395.2

The accrued pension premiums were €75.9 million as of December 31, 2024, and €39.2 million as of December 31,

2023.

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 23,082 eligible payroll employees in the Netherlands (53.9% 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 1,566 companies and approximately 183,003 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 2024, the contribution rate was 28.0%;

(2023: 28.0%; 2022: 28.0%). For 2024, our contribution to this multi-employer union plan (including the premiums

paid by employees) was 18.2% (2023: 18.3%; 2022: 15.7%) of the total contribution to this plan. For 2025, we

expect to contribute around €402.0 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 funds 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% (2023: 104.3%). Compared to the previous year, the

coverage ratio of PME increased to 113.1% as per December 31, 2024 (December 31, 2023: 109.4%). A recovery

plan is in place intended to improve this coverage ratio toward a minimum of 119.1%. 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 2024, 2023 and 2022. As of

December 31, 2024, our liability under deferred compensation plans was €111.8 million (2023: €94.7 million). The

related compensation plan assets are €113.1 million (2023: €95.2 million).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	361
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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 LTI plans are covered by an overarching Employee Umbrella Share Plan, which is effective as of January 1,

2014, and covers all employees. The main purpose of the grants of Equity Incentives under this Employee Umbrella

Share Plan is to continue to attract, reward and retain qualified and experienced industry professionals in an

international labor market. All grants under the Employee Umbrella Share Plan typically have a vesting period of 2.5-

to-3 years and are subject to performance and/or service criteria.

As part of our LTI bonus, employees can be granted either a service or performance share-based payment plan. For

service-type plans, shares are granted at grant date, and after having been in service for a set period, the participant

is awarded these shares at the vesting date. For performance plans, the same conditions apply as a service-type

plan. Additionally, the shares are conditionally granted and awarded based on the company-specific performance

criteria, which can be split between market- and non-market-based elements. These shares vest after completion of

the service period and the performance reached at vesting date.

The General Meeting approved the adoption of the most recent Remuneration Policy for the Board of Management

and the number of shares to be issued. The most recent Remuneration Policy includes the target and maximum

levels of the LTI plans, the performance measures and pay-out zone percentages. The policies for employees are

approved by the Board of Management. The General Meeting also approved the restrictions and limits to the Board

of Management for issuance/granting of ordinary shares, limits for restricting or excluding the pre-emption rights

accruing to shareholder, and the restrictions and limits to the Board of Management for repurchasing ordinary

shares on behalf of the company.

The table below shows the performance criteria and the corresponding weight of the LTI performance plans granted

in 2024.

LTI performance plan criteria	Market/Non-market element	Weight
Relative TSR	Market	30%
Strategic value drivers	Non-market	30%
Technology Leadership Index	Non-market	20%
ESG measures	Non-market	20%
Total		100%

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 and voting rights

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 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 statement of operations as the compensation paid to the employees receiving the

stock-based awards.

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 the following table:

Year ended December 31	2022	2023	2024
Share price in € at grant date	548.0	620.1	707.1
Expected volatility ASML	41.8%	46.2%	40.0%
Average volatility of the peer group (market practice)	47.8%	50.0%	43.3%
Vesting period	2.7 years	2.9 years	2.9 years
Dividend yield	1.0%	0.9%	0.7%
Risk free interest rate (Eurozone)	0.5%	2.4%	2.4%
Risk free interest rate (U.S.)	2.8%	3.9%	4.2%
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	362
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

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)	2022	2023	2024
Incurred expenses	68.9	134.8	172.6
Expected expenses of conditionally granted plans in future periods	113.0	187.2	246.1
Weighted average period for recognizing these expected expenses	1.4 years	1.6 years	1.5 years
Recognized income tax benefit (excluding excess income tax benefits)	10.2	16.3	28.2

Details with respect to shares granted and vested during the year are set out in the following table:

	-denominated		-denominated
Year ended December 31	2022	2024	2022	2024
Total fair value of shares vested during the year (in millions)	120.6	161.4	149.6	155.2
Weighted average fair value of shares granted	578.65	801.78	553.61	848.18

All values are in Euros.

A summary of the status of conditionally outstanding shares as of December 31, 2024, and changes during the year

ended December 31, 2024, is presented below:

	-denominated	-denominated
	Numberof shares	Numberof shares
Conditional shares outstanding at January 1, 2024	275,571	363,119
Granted	220,149	260,307
Vested	(211,517)	(201,411)
Forfeited	(3,850)	(11,335)
Conditional shares outstanding at December 31, 2024	280,353	410,680

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.

Details with respect to stock options exercised and outstanding are set out in the following table:

	-denominated		-denominated
Year ended December 31	2022	2024	2022	2024
Weighted average share price at stock option exercise	494.14	834.48	565.39	911.23
Aggregate intrinsic value of exercised stock options (in millions)	4.4	10.2	1.6	8.2
Weighted average remaining contractual term of exercisable<br><br>options (in years)	2.08	0.83	2.09	0.84
Aggregate intrinsic value of exercisable stock options (in millions)	20.3	11.4	14.6	8.2
Aggregate intrinsic value of outstanding stock options (in millions)	20.3	11.4	14.6	8.2

All values are in Euros.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	363
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

The number and weighted average exercise prices of stock options as of December 31, 2024, and changes during

the year then ended are presented below:

	-denominated	-denominated
	Numberof options	Numberof options
Outstanding, January 1, 2024	32,839	23,962
Granted1	—	—
Exercised	(13,471)	(10,048)
Forfeited	—	—
Expired	(32)	(180)
Outstanding, December 31, 2024	19,336	13,734
Exercisable, December 31, 2024	19,336	13,734

All values are in Euros.

1.Since 2017, we no longer grant options to our employees.

Details with respect to stock options exercised in the relevant year and outstanding stock options as of December

31, 2024, are set out in the following table:

-denominated		-denominated
Range of exercise prices (in )	Weighted average<br><br>remaining<br><br>contractual life of<br><br>outstanding (years)	Range of exercise prices (in )	Weighted average<br><br>remaining<br><br>contractual life of<br><br>outstanding (years)
70–80	0.79	70–80	0.00
80–90	0.89	80–90	0.79
90–100	0.79	90–100	0.84
100–110	0.00	100–110	0.87
Total	0.83	Total	0.84

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% gross cash bonus on the initial participation amount. This cash

bonus is recorded as part of personnel expenses.

Accounting policy

Employee share purchase plans are accounted 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 2024, ASML received €124.0 million (2023: €99.4 million; 2022: €81.8 million) from issuance of shares for our

employee share purchase plan.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	364
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 the carrying amounts of deferred tax assets

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 that qualify as income

tax, as well as actual or potential withholding taxes on current and expected dividend income from group

companies.

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 income.

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 sustained on audit, including resolution of related appeals or litigation processes, if any. 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.

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, whereby Income tax expense Netherlands represents the

total tax expense on taxable income generated by our entities in the Netherlands and Income tax expense Foreign

represents the total tax expense on taxable income generated by our non-Dutch group entities. Hereby Total

income tax expense Netherlands includes withholding tax expense withheld at source on income paid by non-Dutch

entities to the Netherlands.

Year ended December 31 (€, in millions)	2022	2023	2024
Netherlands	5,881.0	8,453.5	7,927.0
Foreign	575.1	630.0	1,115.4
Income before income taxes	6,456.1	9,083.5	9,042.4
Income tax (expense) / benefit current	(818.4)	(1,211.7)	(1,424.1)
Income tax (expense) / benefit deferred	(44.4)	(58.4)	67.5
Income tax (expense) / benefit Netherlands	(862.8)	(1,270.1)	(1,356.6)
Income tax (expense) / benefit current	(678.3)	(441.3)	(322.7)
Income tax (expense) / benefit deferred	571.2	275.6	(1.3)
Income tax (expense) / benefit Foreign	(107.1)	(165.7)	(324.0)
Total income tax (expense) / benefit current	(1,496.7)	(1,653.0)	(1,746.8)
Total income tax (expense) / benefit deferred	526.8	217.2	66.2
Total income tax (expense) / benefit	(969.9)	(1,435.8)	(1,680.6)
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	365
---	---	---	---	---	---
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)	2022	2023	2024
Current year tax (expense) / benefit	(1,440.9)	(1,766.1)	(1,535.6)
Prior year tax (expense) / benefit	(55.8)	113.1	(211.2)
Total current tax (expense) / benefit	(1,496.7)	(1,653.0)	(1,746.8)		Year ended December 31 (€, in millions)	2022	2023	2024
---	---	---	---
Changes to recognition of operating losses and tax credits	(41.2)	3.0	(24.9)
Prior year tax (expense) / benefit	79.2	(85.2)	93.1
Tax rate changes	(1.1)	13.5	—
Origination and reversal of temporary differences, operating losses and<br><br>tax credits	489.9	285.9	(2.0)
Total deferred tax (expense) / benefit	526.8	217.2	66.2

Above current year tax expense includes estimated global minimum tax expense of €2.5 million that can be broken

out as follows:

Year ended December 31 (€, in millions)3	2024
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 top-up tax.

2.IIR = Income Inclusion Rule.

3.Global Minimum Tax rules have only first become applicable as of 2024. As such, no reference for 2022 and 2023 has been included.

The Dutch statutory tax rate was 25.8% in 2024 (2023: 25.8%; 2022: 25.8%). Tax amounts in other jurisdictions are

calculated at the rates prevailing in the relevant jurisdictions.

The effective tax rate (ETR) increased to 18.6% in

2024

, compared with

15.8%

in

2023

. The higher rate is mainly

driven by the new innovation box agreement that has entered into force as of 2024 as well as to the recognition of a

tax expense in relation to a historic tax position.

The reconciliation of the income tax expense from the Dutch statutory rate to the effective income tax rate is as

follows:

Year ended December 31 (€, in millions)	2022	%1	2023	%1	2024	%1
Income before income taxes	6,456.1	100.0%	9,083.5	100.0%	9,042.4	100.0%
Income tax expense based on ASML’s domestic rate	(1,665.7)	25.8%	(2,343.5)	25.8%	(2,332.9)	25.8%
Effects of tax rates in foreign jurisdictions	13.0	(0.2)%	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	741.2	(11.5)%	941.9	(10.4)%	824.6	(9.1)%
Adjustments in respect of prior years’ current taxes	(55.8)	0.9%	113.1	(1.2)%	(211.2)	2.3%
Adjustments in respect of prior years’ deferred taxes	79.2	(1.2)%	(85.2)	0.9%	93.1	(1.0)%
Movements in the liability for unrecognized tax benefits	(9.9)	0.2%	(55.0)	0.6%	(66.8)	0.7%
Global Minimum Tax	—	—%	—	—%	(2.5)	—%
Change in valuation allowance	(41.2)	0.6%	3.0	—%	(24.9)	0.3%
Equity method investments	(38.3)	0.6%	(42.6)	0.5%	(41.6)	0.5%
Effect of change in tax rates	(1.1)	—%	13.5	(0.1)%	—	—%
Other (credits) and non-tax deductible items	8.7	(0.1)%	2.9	—%	54.1	(0.6)%
Income tax expense	(969.9)	15.0%	(1,435.8)	15.8%	(1,680.6)	18.6%

1.As a percentage of income before income taxes.

The individual line items in the table above are explained in more detail below.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	366
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

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 have been applicable assuming that all of our income is taxable against the

Dutch statutory tax rate and there are no differences between taxable base and financial results and no tax

incentives are applied.

Effects of tax rates in foreign jurisdictions

A portion of our results is realized in countries other than the Netherlands where different tax rates are applicable.

The effect can differ from year to year depending on the profit before tax in respective foreign jurisdictions.

Adjustments in respect of tax-exempt income

Some interest income earned is exempt for tax purposes at the level of one of our group entities.

Adjustments in respect of tax incentives

Adjustments in respect of tax incentives mainly relate to a reduced tax rate as a result of application of the Dutch

Innovation Box, which 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.

Furthermore, this category includes the benefit of the foreign-derived intangible income (FDII) deduction applicable

at the level of our US group companies. The FDII deduction is a facility under US corporate tax law which reduces

the effective tax rate on income derived from tangible and intangible products and services in foreign markets.

Based on new guidance issued by the US Internal Revenue Service (IRS) in 2023 on funded R&D, FDII deduction for

2023 and 2024 has significantly reduced.

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.

Adjustments in respect of prior years’ current taxes

The adjustments in respect of prior years’ current taxes relate to differences between the initially estimated income

taxes and final corporate income tax (CIT) returns filed or arrangements agreed upon with tax authorities. These are

mainly caused by modifications in temporary differences on contract liabilities and are offset by similar movements

in prior-year deferred tax balances. For 2024 it also includes a tax expense in relation to a historic tax position.

Adjustments in respect of prior years’ deferred taxes

The movements in the adjustments in respect of prior years’ deferred taxes mainly relate to differences between the

initially estimated income taxes and final CIT returns filed. This is mainly caused by modifications in temporary

differences on contract liabilities.

Movements in the liability for unrecognized tax benefits

In 2024, similar to prior years, the effective tax rate was impacted by movements in the liability for unrecognized tax

benefits. The movement for 2024 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.

Global minimum tax

ASML falls within the scope of the 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 €2.5 million.

Change in valuation allowance

Changes in valuation allowance mainly relate to R&D and withholding tax credits for the respective year at the level

of our group companies in the Netherlands and the US, for which it is considered not more likely than not that these

can be realized in future years. Additionally, in 2023 and 2024 a reduction in valuation allowance is recorded for a

refund of withholding taxes in Taiwan.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	367
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Equity method investments

This line includes the income tax expense relating to our investment in Carl Zeiss SMT Holding GmbH & Co. KG.

Effect of change in tax rates

In 2024 there were no tax rate changes with a revaluation impact. In 2023 there was a small tax rate change impact

relating to revaluation of deferred tax positions of our Dutch fiscal unity following from the renewed innovation box

agreement with the Dutch tax authorities, which slightly changed the effective tax rate of the Dutch fiscal unity

against which temporary differences reverse. Additionally in 2023 a rate change effect was included following an

internal group restructuring in the US.

The 2022 tax rate changes related to adjustments enacted in respective years in the general CIT rates applying in

South Korea and the Netherlands.

Other credits and non-tax deductible items

Other credits and non-tax-deductible items reflect the impact on our statutory rates of permanent non-tax

deductible items such as non-deductible withholding taxes, non-deductible shared-based payment expenses and

non-deductible meals and entertainment expenses, as well as the impact of various tax credits (e.g. US R&D

credits) on our income tax expense.

US Tax Reform

The year-end tax positions also reflect the regulations of 2017 US Tax Reform, 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 things, implemented a 25% investment

tax credit on semiconductor and semiconductor equipment manufacturing assets. Accounting for respective credits

is outside scope of Income Tax. For more details we refer to paragraph 13 ‘Property, plant and equipment’.

Additionally, in 2022 the US enacted the Inflation Reduction Act (IRA), which, among other things, implements 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 2024. Based on our current analysis, we do not believe the IRA will have a

material impact on our Consolidated financial statements for years 2024 and onward.

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)	2022	2023	2024
Liability for unrecognized tax benefits	(215.5)	(249.7)	(253.1)
Deferred tax assets	1,672.8	1,872.3	1,940.7
Deferred tax liabilities	(51.5)	(122.6)	(46.1)
Deferred and other tax assets (liabilities)	1,405.8	1,500.0	1,641.5

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.

Consistent with the requirements of ASC 740, as of December 31, 2024, the liability for unrecognized tax benefits

(excluding interest and penalties) amounts to €214.0 million (2023: €193.6 million), which is classified as Deferred

and other income tax liabilities. If recognized, these unrecognized tax benefits would affect our effective tax rate for

approximately €188.4 million benefit (2023: €176.7 million benefit).

Interest and penalties related to the liability for unrecognized tax benefits amount to €39.1 million (

2023

: €56.1

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

2024

amount to a benefit of €17.7 million (

2023

: €3.4

million expense; 2022: €5.0 million benefit).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	368
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

A reconciliation of the beginning and ending balance of the liability for unrecognized tax benefits (excluding interest

and penalties) is as follows:

Year ended December 31 (€, in millions)	2022	2023	2024
Balance as at January 1	(144.3)	(160.0)	(193.6)
Gross increases – tax positions in prior period	(11.7)	(44.1)	(39.7)
Gross decreases – tax positions in prior period	2.0	12.6	11.0
Gross increases – tax positions in current period	(23.1)	(27.7)	(64.9)
Settlements	6.8	2.2	69.9
Lapse of statute of limitations	13.2	17.9	6.1
Effect of changes in exchange rates	(2.9)	5.5	(2.8)
Total liability for unrecognized tax benefits	(160.0)	(193.6)	(214.0)
Balance of accrued interest and penalties	(55.5)	(56.1)	(39.1)
Total liabilities for unrecognized tax benefits including interest and<br><br>penalties	(215.5)	(249.7)	(253.1)

We conclude our liability for unrecognized tax benefits to be appropriate. Based on the information currently

available, we estimate that the liability for unrecognized tax benefits will decrease by €0.6 million (excluding interest

and penalties) within the next 12 months, mainly as a result of expiration of statute of limitations.

Settlements reported in 2024 mainly relate to an agreement reached with South Korean tax authorities in the area of

transfer pricing for financial years 2019 to 2023. Settlements reported in 2022 and 2023 mainly relate to the CIT

returns of our Dutch fiscal unity.

Increase in prior period and current period tax positions mainly relate to dialogues with the Dutch tax authorities in

relation to the use of foreign tax credits.

We file income tax returns in all countries 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:

Country	Years
Netherlands	2021 – 2024
US	2018 – 2024
Taiwan	2019 – 2024
South Korea	2019 – 2024
China	2014 – 2024

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 2024	369
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, 2024	Credits and other	Consolidated<br><br>Statements<br><br>of Operations	Income tax<br><br>recognized 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 2024	370
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

Deferred taxes (€, in millions)	January 1, 2023	Credits and other	Consolidated<br><br>Statements<br><br>of Operations	Effect of changes<br><br>in exchange rates	December 31, 2023
Deferred tax assets:
Capitalized R&D costs	592.1	—	(54.5)	(23.5)	514.1
Goodwill	—	—	65.0	—	65.0
R&D and other tax credit carry forwards	213.4	(28.1)	39.5	(7.0)	217.8
Inventories	45.2	—	17.6	(1.4)	61.4
Contract liabilities	820.8	—	174.4	(35.4)	959.8
Accrued and other liabilities1	113.9	—	30.5	(4.9)	139.5
Operating loss carry forwards	4.5	—	0.2	(0.8)	3.9
Property, plant and equipment	18.9	—	10.7	(0.4)	29.2
Lease liabilities	27.4	—	2.3	(1.0)	28.7
Other intangible assets	124.8	—	(5.5)	—	119.3
Share-based payments	11.4	—	5.9	(0.5)	16.8
Other temporary differences	23.3	—	(6.6)	5.8	22.5
Total deferred tax assets, gross	1,995.7	(28.1)	279.5	(69.1)	2,178.0
Valuation allowance2	(215.4)	—	3.0	5.7	(206.7)
Total deferred tax assets, net	1,780.3	(28.1)	282.5	(63.4)	1,971.3
Deferred tax liabilities:
Other intangible assets	(65.4)	—	10.9	2.5	(52.0)
Goodwill	(28.8)	—	(9.7)	—	(38.5)
Inventories	—	—	(4.1)	0.3	(3.8)
Right-of-use assets	(27.4)	—	(2.3)	1.0	(28.7)
Property, plant and equipment	(9.8)	—	(5.1)	1.3	(13.6)
Accrued and other liabilities	—	—	(0.5)	—	(0.5)
Contract liabilities	(16.3)	—	(64.2)	0.5	(80.0)
Long-term debt	(1.5)	—	(0.1)	—	(1.6)
Other temporary differences	(9.8)	—	9.8	(2.9)	(2.9)
Total deferred tax liabilities	(159.0)	—	(65.3)	2.7	(221.6)
Net deferred tax assets (liabilities)	1,621.3	(28.1)	217.2	(60.7)	1,749.7
Classified as:
Deferred tax assets – non-current	1,672.8				1,872.3
Deferred tax liabilities – non-current	(51.5)				(122.6)
Net deferred tax assets (liabilities)	1,621.3				1,749.7

1.For presentation purposes the standard warranty reserve under the deferred tax assets has been classified as part of the ‘Accrued and other liabilities’ as of 2023.

2.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 2024	371
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 and R&D and other tax credit carry forwards recognized

as per December 31, 2024, are almost fully reserved. R&D and other tax credit carry forwards for the amount of

€209.4 million have no expiration date. The remaining R&D and other tax credit carry forwards of €57.1 million have

an expiration date between 2025 and 2044. For an amount of €12.1 million the operating loss carry forwards have

an expiration date between 2025 and 2035. The remaining operating loss carry forwards of €0.0 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, 2024, the

undistributed retained earnings of our non-Dutch subsidiaries are indefinitely reinvested. 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, 2024, the aggregate amount of

unrecognized temporary differences approximately amounts to €1,010.2 million (

2023

: €673.9 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	2022	2023	2024
Issued ordinary shares with nominal value of €0.09	394,589,411	393,421,721	393,283,720
Issued ordinary treasury shares with nominal value of €0.09	8,548,631	6,162,857	546,972
Total issued ordinary shares with nominal value of €0.09	403,138,042	399,584,578	393,830,692

As of December 31, 2024, 90,315,092 ordinary shares were held by 292 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

register in the Netherlands, held by us at our address at 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.

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 2024	372
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 2024 AGM, the Board of Management was authorized from April 24, 2024, through October 24, 2025, 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 24, 2024, plus an additional 5% of our issued share capital at April 24, 2024,

that may be issued in connection with mergers, acquisitions and/or (strategic) alliances. Our shareholders also

authorized the Board of Management through October 24, 2025, 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 2024 AGM, the Board of Management was authorized, subject to Supervisory Board approval, to repurchase

through October 24, 2025, up to a maximum of 10% of our issued share capital at April 24, 2024, 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), a foundation organized under

Dutch law, has been granted an option right to acquire preference shares in the share capital of ASML. The

Foundation may exercise the Preference Share Option in situations where, in the opinion of the Foundation’s Board

of Directors, our interests, our business or the interests of our stakeholders are at stake. This may be the case if:

•A public bid for our shares is 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 to such a bid; or

•In the opinion of the Foundation’s Board of Directors, the (attempted) exercise of the voting rights by one

shareholder or more shareholders, acting in concert, is materially in conflict with our interests, our business or our

stakeholders.

The Foundation’s objectives are to look after our interests and those of ASML and the enterprises maintained by

and/or affiliated in a group with ASML, in such a way that our interests and those of enterprises and all parties

concerned are safeguarded in the best possible way, and 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, and everything related to the above or possibly conducive thereto. 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 gives the Foundation the right to acquire such number of cumulative preference

shares as the Foundation will require, provided that the aggregate nominal value of such number of cumulative

preference shares shall not exceed the aggregate nominal value of the ordinary shares issued at the time of exercise

of the Preference Share Option. The subscription price will be equal to their nominal value. Only one-quarter of the

subscription price would be payable at the time of initial issuance of the cumulative preference shares, with the

other three-quarters of the nominal value only being payable when we call up this amount. Exercise of the

Preference Share Option could effectively dilute the voting power of the outstanding ordinary shares by one-half.

Cancellation and repayment of the 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 2024	373
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 is independent of ASML. The Board of Directors of the Foundation is composed of four

independent members from the Netherlands’ business and academic communities. The Foundation’s Board of

Directors is composed, per December 31, 2024, of the following members: Mr. A.P.M. van der Poel, Mr. S. Perrick,

Mr. S.S. Vollebregt and Mr. J.B.M. Streppel. Effective per January 1, 2025, Mr. A.P.M. van der Poel was replaced by

Mr. W. A. Pelsma.

Other than the arrangements made with the Foundation as described above, ASML has not established any other

anti-takeover devices.

Dividend policy

ASML aims to distribute a dividend that will be growing 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 2024 of €6.40 per ordinary share, which is a 4.9% increase

compared to the 2023 total dividend of €6.10 per ordinary share. Recognizing the interim dividends of €1.52 per

ordinary share paid in August 2024, November 2024 and February 2025, this leads to a final dividend proposal to

the General Meeting of €1.84 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.

In November 2022, we announced the current up to €12.0 billion 2022-2025 share buyback program 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.

In 2024, we repurchased 574,925 shares (2023: 1,620,128 shares) for a total consideration of €500.0 million (2023:

€1,000.0 million). In 2024, we cancelled 5,754,117 shares (2023: 3,553,815 shares).

The following table provides a summary of shares repurchased by ASML in 2024:

Period	Total number<br><br>of shares<br><br>purchased	Average<br><br>price paid per<br><br>Share (€)	Total number of<br><br>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, 2024	54,938	797.29	54,938	10,756.2
February 1 – 29, 2024	217,359	849.36	272,297	10,571.6
March 1 – 31, 2024	196,519	892.93	468,816	10,396.1
April 1 – 30, 2024	106,109	905.71	574,925	10,300.0
May 1 – 31, 2024	—	—	574,925	10,300.0
June 1 – 30, 2024	—	—	574,925	10,300.0
July 1 – 31, 2024	—	—	574,925	10,300.0
August 1 – 31, 2024	—	—	574,925	10,300.0
September 1 – 30, 2024	—	—	574,925	10,300.0
October 1 – 31, 2024	—	—	574,925	10,300.0
November 1 – 30, 2024	—	—	574,925	10,300.0
December 1 – 31, 2024	—	—	574,925	10,300.0
Total	574,925	869.68
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	374
---	---	---	---	---	---
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)	2022	2023	2024
Net income	5,624.2	7,839.0	7,571.6
Weighted average number of shares outstanding	397.7	393.8	393.3
Basic net income per ordinary share	14.14	19.91	19.25
Weighted average number of shares outstanding	397.7	393.8	393.3
Plus shares applicable to options and conditional shares	0.3	0.3	0.3
Diluted weighted average number of shares	398.0	394.1	393.6
Diluted net income per ordinary share	14.13	19.89	19.24

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 2024	375
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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)	2023		2024
	Impact on net<br><br>income	Impact on<br><br>equity	Impact on net<br><br>income	Impact on<br><br>equity
US dollar	4.2	78.3	10.3	81.3
Japanese yen	(2.6)	(3.8)	(30.4)	(0.4)
Taiwanese dollar	0.4	—	(7.9)	—
Other currencies	(10.0)	—	(10.5)	—
Total	(8.0)	74.5	(38.5)	80.9

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 2024.

The negative effect on net income as presented in the table above for 2024 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 2024 compared to 2023 for both US dollar and Japanese yen is

mainly the result of the change in outstanding cash flow hedges.

For a 10.0% weakening of the foreign currencies against the euro, there would be approximately an 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)	2023	2024
US dollar (USD)	0.8	1.0
Japanese yen (JPY)	8.5	1.1
Taiwanese dollar (TWD)	26.4	27.6
South Korean won (KRW)	61.8	66.4
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 2024, we recognized a transfer to net income of €8.9 million gain (2023: €0.6 million loss; 2022: €66.5 million gain)

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 €31.4 million gain in

the Consolidated statements of operations resulting from derivative financial instruments measured at fair value

through profit or loss (2023: €52.4 million gain; 2022: €3.6 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. The amounts related to the

sales transactions are released on the date of the sales transactions.

Year ended December 31 (€, in millions)	2022	2023	2024
Purchase transactions	5.5	(8.9)	25.6
Net of taxes	4.7	(7.6)	21.7
Sales transactions	3.4	—	—
Net of taxes	2.9	—	—

The effectiveness of all contracts for which we apply hedge accounting is monitored on a quarterly basis. During

2024, 2023 and 2022, no ineffective hedge relationships were recognized.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	376
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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 1.0% 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)	2023		2024
	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 1.0% increase in interest rates	37.6	—	94.9	—

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.

For a 1.0% decrease in interest rates there would be approximately an 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, 2024, was €3.3

billion (2023: €3.3 billion). During 2024, 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 and Finance receivables and prepayments to suppliers.

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 or 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.

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 2024	377
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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 A2 (Positive); the outlook was changed in May 2024 from Stable. 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,

2024, was €0.3 billion (2023: €0.4 billion) and are included in Accounts payable.

Year ended December 31 (€, in billions)	2023	2024
Confirmed obligations outstanding at the beginning of the year	0.4	0.4
Invoices confirmed during the year	2.7	2.9
Confirmed invoices paid during the year	2.7	3.0
Confirmed obligations outstanding at the end of the year	0.4	0.3

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 2024	378
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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 hedge 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)	2023		2024
	Notional<br><br>amount	Fair value	Notional<br><br>amount	Fair value
Forward foreign exchange contracts	281.1	(6.8)	240.6	44.5
Interest rate swaps	3,250.0	(118.8)	3,250.0	(61.6)

The following table summarizes our derivative financial instruments per category:

Year ended December 31 (€, in millions)	2023		2024
	Assets	Liabilities	Assets	Liabilities
Interest rate swaps – fair value hedges	11.3	130.1	9.3	70.9
Forward foreign exchange contracts – cash flow<br><br>hedges	2.9	10.4	31.5	0.1
Forward foreign exchange contracts – no hedge<br><br>accounting	16.9	16.2	55.7	42.6
Total	31.1	156.7	96.5	113.6
Less non-current portion:
Interest rate swaps – fair value hedges	11.3	62.7		29.3
Total non-current portion	11.3	62.7	—	29.3
Total current portion	19.8	94.0	96.5	84.3

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	379
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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.

Four out of six of our outstanding Eurobonds, with a combined principal amount of €3.25 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 six 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 and interest and other

costs.

The following tables present our financial assets and financial liabilities that are measured at fair value on a recurring

basis:

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
Loan receivable	—	—	1,339.4	1,339.4
Long-term debt4	4,561.8	—	—	4,561.8		Year ended December 31, 2023 (€, in millions)	Level 1	Level 2	Level 3	Total
---	---	---	---	---
Assets measured at fair value
Derivative financial instruments1	—	31.1	—	31.1
Money market funds2	3,167.4	—	—	3,167.4
Short-term investments3	—	5.4	—	5.4
Total	3,167.4	36.5	—	3,203.9
Liabilities measured at fair value
Derivative financial instruments1	—	156.7	—	156.7
Assets and liabilities for which fair values are disclosed
Loan receivable	—	—	776.1	776.1
Long-term debt4	4,496.2	—	—	4,496.2

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, 2024, and December 31, 2023.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	380
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.

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, 2024.

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 2023 and 2024, 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. Based on the 24.9% investment, 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 variable interest entity 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 variable interest entity, 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 new 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 continues 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

•New variable pricing model for purchases of products and services determined by the relevant 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

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	381
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

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 Zeiss AG

The loans are measured at amortized cost and presented within the Consolidated balance sheets as Loan

receivable.

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, 2024, we have financed a total amount of €912.4 million (December 31, 2023: €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, 2024, the drawn down amount was €610.0 million with an amortized cost of €528.4 million, an

unamortized discount of €81.6 million and an effective interest rate of 3.2%.

Transition from previous agreements

In 2016, we agreed with Carl Zeiss SMT GmbH to support their R&D costs, capital expenditures and supply chain

investments, in respect of EUV 0.55 NA (High NA). With our new framework agreement, these payments will no

longer be made starting in 2021. We paid €969.1 million prior to the effective amendment date of the new

framework agreement, of which €305.5 million related to R&D costs, which was not to be repaid, and €663.6 million

related to capital expenditures and supply chain investments. The method of repayment for the capital expenditure

and supply chain investment support has been converted to be repaid annually to ASML between 2021 and 2032.

This amount is presented within Other assets as Advanced payments to Carl Zeiss SMT GmbH. The new framework

agreement does not change the risk associated with these assets.

The cash outflows from ASML in the new variable pricing model for purchases of products and services was

determined to currently have 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 2024, the related R&D

funding amounted to €45.1 million (2023: €67.6 million; 2022: €76.6 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. The

new framework agreement does not change our right to settle the previously paid amounts and does not change the

risk associated with these assets. We will continue to support Carl Zeiss SMT GmbH’s work-in-process under the

new framework agreement through prepayments on product deliveries.

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)	2023	2024	Maximum<br><br>exposure to loss
Advance payments included in Other assets	1,182.7	1,415.7	1,415.7
Loan receivable	912.4	1,440.8	1,440.8
Investment agreement for 24.9% equity	919.6	903.0	903.0
Accounts receivable	7.8	70.8	70.8
Accounts payable	4.0	955.8	—
Cost to be paid included in Accrued and other liabilities	199.9	199.9	—

Our maximum exposure to loss related to our involvement in Carl Zeiss SMT Holding GmbH & Co. KG as a variable

interest entity 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)	2022	2023	2024
Total purchases	2,693.6	3,325.9	3,946.5

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 2024	382
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Notes to the Consolidated financial statements (continued)

27. Subsequent events

Subsequent events were evaluated up to March 5, 2025, which is the date the Consolidated financial statements

included in this Annual Report were approved.

On January 29, 2025, ASML announced to declare a total dividend for the year 2024 of €6.40 per ordinary share,

which is a 4.9% increase compared to the 2023 total dividend of €6.10 per ordinary share. Recognizing the interim

dividends of €1.52 per ordinary share paid in August 2024, November 2024 and February 2025, this leads to a final

dividend proposal to the General Meeting of €1.84 per ordinary share.

Veldhoven, the Netherlands

March 5, 2025

/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

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	383
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Other appendices

384	Principal accountant fees and services
385	Property, plant and equipment
386	Dutch and US taxation
391	Financing policy
393	Government regulation
394	Offer and listing details
395	Exchange controls
396	Documents on display
397	Controls and procedures
398	Financial calendar and investor relations
399	ASML contact information
400	Change in Registrant’s Certifying Accountant
401	Reference table 20-F
403	Definitions
410	Signatures
411	Exhibit index
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	384
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Principal accountant fees and services

KPMG has served as our independent registered public accounting firm for the years ended December 31, 2024

and 2023. The following table sets out the aggregate fees for professional audit services and other services

rendered by KPMG and their member firms and affiliates in 2024 and 2023:

Year ended December 31	2023			2024
(€, in thousands)	KPMG<br><br>Accountants<br><br>N.V.	KPMG<br><br>Network	Total	KPMG<br><br>Accountants<br><br>N.V.	KPMG<br><br>Network	Total
Audit fees	3,509	1,152	4,661	3,857	1,188	5,045
Audit-related fees	196	—	196	812	13	825
Tax fees	—	—	—	—	—	—
All other fees	28	11	39	85	2	87
Principal accountant fees	3,733	1,163	4,896	4,754	1,203	5,957

Audit fees and audit-related fees

Our independent registered public accounting firm is KPMG Accountants N.V. (KPMG), Amstelveen, The

Netherlands, Auditor Firm ID: 1012. 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 and 100% of

the external audit plan and audit fees for the years 2024 and 2023.

The Audit Committee monitors compliance with the Dutch, EU regulation and SEC rules on non-audit services

provided by an independent registered public accounting firm, which outlines strict separation of audit and advisory

services for Dutch public interest entities.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	385
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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 Wilton, Connecticut, and San Diego, California, both in the

US, in Linkou and Tainan, both in Taiwan, and in Pyeongtaek, South Korea. The book value of land and buildings

owned amounts to €4,028.6 million as of December 31, 2024, compared with €3,080.3 million as of December 31,

2023. See Consolidated financial statements - Notes to the Consolidated financial statements - Note 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 2024, 2023 and 2022, amounted to €2,067.2 million,

€2,155.6 million and €1,281.8 million, respectively.

We expect that our capital expenditures (purchases of property, plant and equipment) in 2025 will be approximately

€2.0 billion. These expenditures are expected to mainly consist of further expansion and upgrades of facilities.

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 state-of-

the-art campus includes 240 thousand square meters of office space and 61 thousand square meters of clean room

used for manufacturing and R&D. In Veldhoven and in the greater Eindhoven area, there are also 75 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. In 2021, we added a manufacturing site in Berlin to our portfolio. Our Berlin campus consists of

11 buildings which are mainly owned properties with a total floor area of 61 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 56 thousand square meters campus which consists of five buildings in Wilton,

Connecticut. In December 2022, we acquired an additional building of 31 thousand square meters to be utilized as

office and lab space in Wilton. 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 19 thousand square meters.

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. Our

campus in Hwaseong, South Korea is comprised of 11 thousand square meters spread over five buildings for mainly

office use and a small portion of clean room and lab space. Our Cymer facility in Pyeongtaek, South Korea is a

manufacturing site mainly used for refurbishment activities of light sources. In Beijing, China, we have an HMI facility

and a local repair center 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 2024	386
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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	387
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Dutch and US taxation (continued)

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

•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 is considered the beneficial owner of

the distributed dividend.

•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 is considered

the beneficial owner of the distributed dividend.

•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 is

considered the beneficial owner of the distributed dividend.

•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. Based on domestic law not yet entered into force, in those circumstances, an exemption at

source may also become available upon request.

•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.

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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	388
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Dutch and US taxation (continued)

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 (the ‘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.

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 is not considered the beneficial owner of such

dividends.

Conditional dividend withholding tax

In accordance with the Dutch Withholding Tax Act 2021, as of 2024 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, or to recipients who qualify as hybrid entities, 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	389
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Dutch and US taxation (continued)

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 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 2024 and that

we will not be a passive foreign investment company in 2025. 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.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	390
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Dutch and US taxation (continued)

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.

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 2024	391
Financial statements	Notes	Appendices	Definitions
---	---	---	---

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)	2023	2024
Deposits with financial institutions, governments and government-related bodies	1,348.7	4,850.4
Investments in money market funds	3,167.4	6,379.2
Bank accounts	2,488.6	1,506.3
Cash and cash equivalents	7,004.7	12,735.9
Deposits with financial institutions, governments and government-related bodies	5.4	5.4
Short-term investments	5.4	5.4

We maintain an available committed credit facility of €1.5 billion (2023: €0.7 billion) with a group of banks, under

which no amounts were outstanding at the end of 2024 and 2023. This facility has a maturity date of May 2029 with

two one year uncommitted extension options on the first and second anniversary of the facility (extending the

maturity potentially to 2031).

Capital structure

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 A2 (Positive); the outlook was changed in May 2024 from Stable. Our

current credit rating from Fitch is A+ (Stable). This rating was upgraded in May 2024 from A.

We have Eurobonds outstanding with an aggregate principal amount of €4.8 billion, having the following maturities:

Outstanding Eurobond maturity amounts

(The €500 million bond maturing in 2032 is a green bond)

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	392
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Financing policy (continued)

Cash return policy

ASML aims to distribute a dividend that will be growing 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 2024 of €6.40 per ordinary share, which is a 4.9% increase

compared to the 2023 total dividend of €6.10 per ordinary share. Recognizing the interim dividends of €1.52 per

ordinary share paid in August 2024, November 2024 and February 2025, this leads to a final dividend proposal to

the General Meeting of €1.84 per ordinary share.

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.

In November 2022, we announced the current up to €12.0 billion 2022-2025 share buyback program 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.

In 2024, we repurchased 574,925 shares (2023: 1,620,128 shares) for a total consideration of 500.0 million (2023:

1,000.0 million). In 2024, we cancelled 5,754,117 shares (2023: 3,553,815 shares).

Dividend per share history

(Dividends attributable to book year)

Cumulative cash returns<br><br>(Cash return is cumulative share buyback and dividend paid)

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	393
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Government regulation

Our business is subject to direct and indirect regulations in each of the countries in which our customers or we do

business, and changes in various types of regulations can affect our business adversely. As our business has

expanded, we have become subject to increasing and increasingly complex regulations. Such regulations include

without limitation environmental regulations, workplace safety regulations, regulations under securities laws and

stock exchange rules, anti-corruption regulations, anti-trust regulations, national security regulations, trade

restrictions, export controls including licensing or authorization requirements, requirements to obtain authorizations

for the use of US technology and for employees producing and developing such technology. The implementation of

new, and changes in enforcement of, such legal requirements, including export controls and required permits and

licenses or changes in interpretation, implementation or enforcement of such regulations and requirements, could

impact our products, our manufacturing or distribution processes or location of sales and where and to whom we

can deliver and service our products and services, and could affect the timing of product introductions, the cost of

our production, and products as well as their commercial success in each market in which we operate. The impact

of these regulations and new regulations and enforcement thereof could adversely affect our business, our financial

condition and our results of operations, even where the specific regulations do not directly apply to us or to our

products.

Read more in Strategic report – Performance and risk – Risk – Risk factors – 6. Legal and compliance

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	394
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Offer and listing details

Our ordinary shares are listed for trading in the form of registered ASML Nasdaq shares and in the form of

registered ASML Euronext Amsterdam shares. The principal trading market of our ordinary shares is Euronext

Amsterdam (trading symbol: ASML). Our ordinary shares also trade on Nasdaq (trading symbol: ASML).

Our shares listed on Nasdaq are registered with JPMorgan Chase Bank N.A., our New York Transfer Agent,

pursuant to the terms of the Transfer Agent Agreement between ASML and JPMorgan Chase Bank N.A. Our shares

listed on Euronext Amsterdam are held in dematerialized form through the facilities of Euroclear Nederland, the

Dutch centralized securities custody and administration system. The New York Transfer Agent charges shareholders

a fee of up to USD 5.00 per 100 shares for the exchange of our shares listed at Nasdaq for our shares listed at

Euronext Amsterdam and vice versa.

Dividends payable on our shares listed at Nasdaq are declared in euro and converted to US dollars at the rate of

exchange at the close of business on the date determined by the Board of Management. The resulting amounts are

distributed through the New York Transfer Agent and no charge is payable by holders of our shares listed at Nasdaq

in connection with this conversion or distribution.

Pursuant to the terms of the Transfer Agent Agreement, we have agreed to reimburse the New York Transfer Agent

for certain out of pocket expenses, including in connection with any mailing of notices, reports or other

communications made generally available by ASML to holders of ordinary shares. The New York Transfer Agent has

waived its fees associated with routine services to ASML associated with our shares listed at Nasdaq. In addition,

the New York Transfer Agent in consideration of its acting as Transfer Agent has agreed to make a contribution

toward covering certain expenses incurred by ASML in connection with the issuance and transfer of our shares

listed on Nasdaq. In the year ended December 31, 2024, the Transfer Agent contributed USD 0.8 million toward

coverage of expenses incurred by ASML (which mainly comprised audit, advisory, legal and listing fees incurred due

to the existence of our share listing on Nasdaq).

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	395
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Exchange controls

Cash distributions, if any, payable in euros on our shares listed at Euronext Amsterdam may be officially transferred

by a bank from the Netherlands and converted into any other currency without being subject to any Dutch legal

restrictions. However, for statistical purposes, such payments and transactions must be reported by ASML to the

Dutch Central Bank. Furthermore, no payments, including dividend payments, may be made to jurisdictions subject

to certain sanctions, adopted by the government of the Netherlands, implementing resolutions of the Security

Council of the United Nations. Cash distributions, if any, on our shares listed at Nasdaq shall be declared in euros

but paid in US dollars, converted at the rate of exchange at the close of business on the date fixed for that purpose

by the Board of Management in accordance with the Articles of Association.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	396
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Documents on display

We are subject to certain reporting requirements of the Exchange Act. As a ‘foreign private issuer’, we are exempt

from the rules under the Exchange Act prescribing certain disclosure and procedural requirements for proxy

solicitations, and our officers, directors and principal shareholders are exempt from the reporting and ‘short-swing’

profit recovery provisions contained in section 16 of the Exchange Act, with respect to their purchases and sales of

shares. In addition, we are not required to file reports and Financial statements with the Securities and Exchange

Commission (SEC) as frequently or as promptly as companies whose securities are registered under the Exchange

Act that are not foreign private issuers. We are required to file with the SEC, within four months after the end of each

fiscal year, an Annual Report on Form 20-F containing Financial statements audited by an independent accounting

firm and interactive data comprising Financial statements in extensible business reporting language. We publish

unaudited interim financial information in accordance with US GAAP after the end of each quarter. We furnish this

quarterly financial information to the SEC under cover of a Form 6-K.

The documents we file with the SEC are publicly available on the SEC’s website, which contains reports and other

information regarding registrants that are required to file electronically with the SEC. The address of this website is

sec.gov.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	397
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Controls and procedures

Disclosure controls and procedures

As of December 31, 2024, ASML’s senior management conducted an evaluation, under the supervision and with the

participation of ASML’s CEO and CFO, of the effectiveness of the design and operation of ASML’s disclosure

controls and procedures (as defined in Rule 13a–15(e) under the Exchange Act). Based on such evaluation, ASML’s

CEO and CFO have concluded that, as of December 31, 2024, ASML’s disclosure controls and procedures are

effective in recording, processing, summarizing and reporting, within the time periods specified in the rules and

forms of the Securities and Exchange Commission, information required to be disclosed by ASML in the reports that

it files or submits under the Exchange Act and are effective in ensuring that information required to be disclosed by

ASML in the reports that it files or submits under the Exchange Act is accumulated and communicated to ASML’s

management, including ASML’s CEO and CFO, as appropriate to allow timely decisions regarding required

disclosure.

Management’s report on internal control over financial reporting

ASML’s management is responsible for establishing and maintaining adequate internal control over financial

reporting, as defined in Rule 13a–15(f) under the Exchange Act. Under the supervision and with the participation of

ASML’s CEO and CFO, ASML’s management conducted an evaluation of the effectiveness of ASML’s internal

control over financial reporting as of December 31, 2024, based upon the framework in ‘Internal Control – Integrated

Framework’ (2013) issued by the COSO. Based on that evaluation, management has concluded that ASML’s

internal control over financial reporting was effective, as of December 31, 2024, at providing reasonable assurance

regarding the reliability of financial reporting and the preparation of the Financial statements for external purposes in

conformity with US GAAP.

KPMG Accountants N.V., an independent registered public accounting firm, has audited the Financial statements as

included in this Annual Report and has also audited and issued a report, included herein, on the effectiveness of

ASML’s internal control over financial reporting.

Changes in internal control over financial reporting

During the year ended December 31, 2024, there have been no changes in our internal control over financial

reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial

reporting.

Inherent limitations of disclosure controls and procedures in internal control over financial

reporting

It should be noted that any system of controls, however well designed and operated, can provide only reasonable,

and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control

system is based in part upon certain assumptions about the likelihood of future events.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	398
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Financial calendar and investor relations

Financial calendar

April 16,

2025

Announcement of First Quarter results for

2025

April 23, 2025

Annual General Meeting

July 16,

2025

Announcement of Second Quarter results for

2025

October 15,

2025

Announcement of Third Quarter results for 2025

Fiscal Year

ASML’s fiscal year ends on December 31, 2025

Investor Relations

ASML Investor Relations supplies information regarding the company and its business opportunities to investors

and financial analysts. Our annual reports, quarterly releases and other information are also available on our

website.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	399
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – ASML worldwide contact information

Corporate headquarters

De Run 6501

5504 DR Veldhoven

The Netherlands

Mailing address

P.O. Box 324

5500 AH Veldhoven

The Netherlands

Investor Relations

Phone: +31 40 268 3938

Email: investor.relations@asml.com

For additional contact information please visit asml.com

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	400
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Change in Registrant’s Certifying Accountant

At the AGM held on April 26, 2023, PricewaterhouseCoopers Accountants NV (PwC) was appointed as the new

external audit firm for ASML for the fiscal year ending December 31, 2025. The appointment of PwC followed after

the completion of a tender and selection process and the subsequent appointment proposal made to the General

Meeting by the Supervisory Board in April 2022, in line with the recommendation by the Audit Committee. The

change in auditors was initiated to comply with relevant independence regulations, that include mandatory audit

firm rotation. Accordingly, KPMG is deemed to have declined to stand for re-election for the purposes of Item

16F(a)(1)(i) of Form 20-F.

During the fiscal years ended December 31, 2024 and 2023 and the subsequent period through March 5, 2025, (1)

KPMG has not issued any reports on the financial statements of ASML or on the effectiveness of internal control

over financial reporting that contained an adverse opinion or a disclaimer of opinion, nor were the auditors’ reports

of KPMG qualified or modified as to uncertainty, audit scope, or accounting principles, (2) there has not been any

disagreement over any matter of accounting principles or practices, financial statement disclosure, or auditing

scope or procedures, which disagreement(s), if not resolved to KPMG’s satisfaction would have caused it to make

reference to the subject matter of the disagreement in connection with its auditors’ reports, or any “reportable

event” as described in Item 16F(a)(1)(v) of Form 20-F.

Furthermore, during the fiscal years ended December 31, 2024 and 2023 and the subsequent period through March

5, 2025, neither ASML nor anyone on its behalf has consulted with PwC regarding either (i) the application of

accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that

might be rendered with respect to the consolidated financial statements of ASML, and either a written report or oral

advice that was provided by PwC was considered by ASML as being an important factor in reaching a decision as

to any accounting, auditing or financial reporting issue; or (ii) any matter that was the subject of a disagreement as

that term is used in Item 16F(a)(1)(iv) of Form 20-F or a “reportable event” as described in Item 16F(a)(1)(v) of Form

20-F.

ASML has provided KPMG with a copy of the foregoing disclosure and has requested that KPMG furnish ASML with

a letter addressed to the SEC stating whether it agrees with such disclosure. A copy of the letter, dated March 5,

2025, is filed herewith as Exhibit 15.2.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	401
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Reference table 20-F

Item	Form 20-F caption	Location in this document	Page
Part I
1	Identity of Directors, Senior Management<br><br>and Advisers	Not applicable
2	Offer Statistics and Expected Timetable	Not applicable
3	Key information
	B.  Capitalization and Indebtedness	Not applicable
	C.  Reasons for the Offer and Use of Proceeds	Not applicable
	D.  Risk Factors	Risk - Risk factors	67
4	Information on the Company
	A.  History and Development of the Company	Cover page	1
		At a glance	6
		Appendix - Property, plant and equipment	385
		Appendix - Documents on display	396
		Appendix - ASML contact information	399
	B.  Business Overview	At a glance	6
		Our marketplace	35
		Note 2 Revenue from contracts with customers	341
		Note 3 Segment disclosure	345
		Appendix - Government regulation	393
	C.  Organizational Structure	Corporate governance – Compliance with<br><br>Corporate governance requirements – Corporate<br><br>information	114
	D.  Property, Plant and Equipment	Note 13 Property, plant and equipment, net	352
		Appendix - Property, plant and equipment	385
4A	Unresolved Staff Comments	Not applicable
5	Operating and Financial<br><br>Review and Prospects
	A.  Operating Results	Financial performance - Performance KPIs	56
	B.  Liquidity and Capital Resources	Financial performance - Performance KPIs	56
		Appendix - Financing policy	391
		Consolidated statements of cash flows	339
		Note 4 Cash and cash equivalents and short-term<br><br>investments	346		Item	Form 20-F caption	Location in this document	Page
---	---	---	---
		Note 16 Long-term debt and interest and other<br><br>costs	356
		Note 17 Commitments and contingencies	358
		Note 25 Financial risk management	374
	C.  Research and Development, Patents and<br><br>Licenses, etc.	How we innovate	31
		Financial performance – Research and<br><br>development costs	58
		Innovation ecosystem	297
		Information Security - Intellectual Property<br><br>protection	92
	D.  Trend Information	Long-term growth opportunities	61
		Risk - Risk factors	67
	E.  Critical Accounting Estimates	Consolidated financial statements - Notes to the<br><br>Consolidated financial statements - Note 1<br><br>General information / summary of general<br><br>accounting policies	340
6	Directors, Senior Management and Employees
	A.  Directors and Senior Management	Corporate governance	98
	B.  Compensation	Remuneration Report	140
	C.  Board Practices	Corporate governance	98
		Corporate governance – Supervisory Board report<br><br>– Supervisory Board committees	127
	D.  Employees	Note 18 Personnel expenses and employee<br><br>information	359
	E.  Share Ownership	Corporate governance – AGM and share capital –<br><br>Major shareholders	111
		Remuneration Report - Board of Management<br><br>remuneration	147
		Note 20 Share-based compensation	361
	F. Disclosure of a Registrant’s Action to Recover<br><br>Erroneously Awarded Compensation	Not applicable
7	Major Shareholders and Related Party Transactions
	A.  Major Shareholders	Corporate governance – AGM and share capital –<br><br>Major shareholders	111
	B.  Related Party Transactions	Note 26 Related parties and variable interest<br><br>entities	380
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	402
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Appendix – Reference table 20-F (continued)

Item	Form 20-F caption	Location in this document	Page
	C.  Interests of Experts & Counsel	Not applicable
8	Financial Information
	A.  Consolidated Statements and Other Financial<br><br>Information	Consolidated financial statements	332
	B.  Significant Changes	Long-term growth opportunities	61
		Notes to the Consolidated financial statements	340
9	The Offer and Listing
	A.  Offer and Listing Details	Appendix - Offer and listing details	394
	B.  Plan of Distribution	Not applicable
	C.  Markets	Appendix - Offer and listing details	394
	D.  Selling Shareholders	Not applicable
	E.  Dilution	Not applicable
	F.  Expenses of the Issue	Not applicable
10	Additional Information
	A.  Share Capital	Not applicable
	B.  Memorandum and Articles of Association	Corporate governance	98
	C.  Material Contracts	None
	D.  Exchange Controls	Appendix - Exchange controls	395
	E.  Taxation	Appendix - Dutch and US taxation	386
	F.  Dividends and Paying Agents	Not applicable
	G.  Statement by Experts	Not applicable
	H.  Documents on Display	Appendix - Documents on display	396
	I.    Subsidiary Information	Not applicable
	J.  Annual Report to Security Holders	Not applicable
11	Quantitative and Qualitative Disclosures About<br><br>Market Risk	Note 16 Long-term debt and interest and other<br><br>costs	356
		Note 25 Financial risk management	374
12	Description of Securities Other Than Equity<br><br>Securities	Appendix - Offer and listing details	394
Part II
13	Defaults, Dividend Arrearages and Delinquencies	None
14	Material Modifications to the Rights of Security<br><br>Holders and Use of Proceeds	None			Item	Form 20-F caption	Location in this document	Page
---	---	---	---
15	Controls and Procedures	Appendix - Controls and procedures	397
16A	Audit Committee Financial Expert	Supervisory Board report – Supervisory Board<br><br>committees – Audit Committee	128
16B	Code of Ethics	Governance – ESG integrated governance –<br><br>Business ethics and Code of Conduct	326
16C	Principal Accountant Fees and Services	Appendix - Principal accountant fees and services	384
16D	Exemptions from the Listing Standards for Audit<br><br>Committees	Not applicable
16E	Purchases of Equity Securities by the Issuer and<br><br>Affiliated Purchasers	Note 22 Shareholders’ equity	371
16F	Change in Registrant’s Certifying Accountant	Appendix - Change in Registrant’s Certifying<br><br>Accountant	400
16G	Corporate Governance	Corporate governance – Compliance with<br><br>Corporate governance requirements – US listing<br><br>requirements	114
16H	Mine Safety Disclosure	Not applicable
16I	Disclosure Regarding Foreign Jurisdictions that<br><br>Prevent Inspections	Not applicable
16J	Insider Trading Policies	Not applicable
16K	Cybersecurity	Risk - Risk factors	67
		Corporate governance – Information security	88
Part III
17	Financial Statements	Not applicable
18	Financial Statements	Consolidated financial statements	332
19	Exhibits	Exhibit index	411

This document contains information required for the Annual Report on Form 20-F for the year ended December 31, 2024, of ASML Holding NV.

Reference is made to the Form 20-F cross reference table above. Only the information in this document that is referenced in the Form 20-F cross

reference table and this paragraph, this cross-reference table itself, the section entitled Special note regarding forward-looking statements and

the Exhibits themselves shall be deemed to be filed with the Securities and Exchange Commission for any purpose. Any additional information in

this document, such as but not limited to the Limited assurance report of the independent auditor on the Sustainability statements, which is not

referenced in the Form 20-F cross reference table, this paragraph, the section entitled Special note regarding forward-looking statements or the

Exhibits themselves shall not be deemed to be incorporated by reference, shall not be part of the 2024 Annual Report on Form 20-F and is

furnished to the Securities and Exchange Commission for information only. This document also includes references to certain information

contained on ASML's website: the information contained on ASML's website is not incorporated by reference and does not form part of this

document.

STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	403
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions

Name	Description
0–9
3TG	Tin, tantalum, tungsten and gold
A
Affected communities	People or groups of people living or working in areas in which ASML has operations and in areas<br><br>affected by ASML’s value chain.
AFM	The Dutch Authority for the Financial Markets (Autoriteit Financiële Markten)
AGM	Annual General Meeting
AI	Artificial intelligence
Applied Materials Inc.	Semiconductor equipment company
ARCNL	Advanced Research Center for Nanolithography
ArF	Argon fluoride
ArFi	Argon fluoride immersion
ASC	Accounting Standards Codification
ASC 606	Accounting Standards Codification revenue recognition
ASC 740	Accounting Standards Codification provision for income taxes
ASML	ASML Holding NV and/or any of its subsidiaries and associates
ASML Preference<br><br>Shares Foundation	Stichting Preferente Aandelen ASML
ATP throughput	Throughput of the measured system (in wph) according to the acceptance test protocol.
B
BEPS	Base erosion and profit shifting
Big data	Extremely large data sets that may be analyzed computationally to reveal patterns, trends and<br><br>associations.
BoM	ASML's Board of Management
Bradley Curve	Illustrates the relationship between accidents and corporate culture.
Brainport Eindhoven	A technology region in the south of the Netherlands comprising companies, educational<br><br>institutions and governmental organizations.
BREEAM	Building Research Establishment Environmental Assessment Method
Brion	Brion Technologies, Inc.
C
CAGR	Compound annual growth rate		Name	Description
---	---
Canon	Canon Kabushiki Kaisha
Capex	Capital expenditures, defined as additions in property, plant and equipment plus additions in<br><br>intangible assets plus additions in right-of-use assets (operating and finance).
Capital resources	Financial, manufactured, intellectual, human, social and relationship, and natural elements<br><br>employed to produce goods and services.
Carl Zeiss SMT	Carl Zeiss SMT GmbH
Cash conversion rate	An economic statistic in controlling that represents the relationship between cash flow and net<br><br>profit.
CD	Critical dimension
CDP	The Carbon Disclosure Project
CEO	Chief Executive Officer
CFO	Chief Financial Officer
CHIPS and Science<br><br>Act	The Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS<br><br>Act), signed into law in August 2022, designed to boost US competitiveness, innovation and<br><br>national security.
CISO	Chief Information Security Officer
CIT	Corporate income tax
CLA	Collective labor agreement
Cleanroom	The central part of a wafer fab where wafers are processed and the environment is carefully<br><br>controlled to eliminate dust and other contaminants.
CMOS	Complementary metal–oxide semiconductor
CO2(e)	Carbon dioxide (equivalent)
Code	The Dutch Corporate Governance Code
Code of Conduct	Code of ethics and conduct
Collective Bargaining<br><br>Agreement (CBA)	A written agreement that defines the terms and conditions of employment for ASML employees<br><br>and regulates relationship between ASML, ASML employees, trade unions and duly elected<br><br>employee representatives.
Company	ASML Holding NV
Computational<br><br>lithography	The use of powerful algorithms and computer modeling of the manufacturing process to optimize<br><br>reticle patterns by intentionally deforming them to compensate for physical and chemical effects<br><br>that occur during lithography and patterning.
COO	Chief Operations Officer
COSO	Committee of Sponsoring Organizations of the Treadway Commission
COVID-19	Coronavirus disease 2019
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	404
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions (continued)

Name	Description
CPP	ASML’s Community Partnership Program
CRMC	Capital Research & Management Company
CSPO	Chief Strategic Sourcing & Procurement Officer
CSRD	Corporate Sustainability Reporting Directive
Cymer	Cymer Inc., Cymer LLC and its subsidiaries
D
DDR5	The 5th generation of double data rate synchronous dynamic random access memory
D&E	Development and engineering
DEFRA	A comprehensive set of GHG emission factors from the UK Government Department for<br><br>Environment, Food & Rural Affairs, Department for Energy Security and Net Zero and Department<br><br>for Business, Energy & Industrial Strategy
Deloitte	Deloitte Accountants BV
Diversity	The variety of people considering for example gender, neurodiversity, nationality, sexual<br><br>orientation, people with disabilities and under-represented minorities.
D&I	Diversity and inclusion
DRAM	Dynamic random-access memory
DUV	A lithography technology that uses deep ultraviolet (DUV) light
E
E-beam	Electron beam
EBIT	Earnings before interest and taxes
EHS	Environment, health and safety
EHS Competence<br><br>Center	A group within ASML that defines EHS standards, gathers best practices and helps managers<br><br>implement them.
EMEA	Europe, the Middle East and Africa
Employee	Those individuals in an employment relationship with ASML according to national law or practice.<br><br>Employees in terms of ESRS reporting comprise total payroll employees for financial statement<br><br>reporting.
Employee turnover	Employees who leave ASML voluntarily or due to dismissal, retirement or death in service,<br><br>thereby excluding termination by way of reaching the end of agreed contact duration.
EMS	Environmental management system
EPE	Edge placement error
EPS	Earnings per share		Name	Description
---	---
ERM	Enterprise risk management
ERP	Enterprise resource planning
eScan	ASML’s e-beam wafer inspection system family for targeted in-line defect detection.
ESG	Environmental, social and governance
ESRS	European Sustainability Reporting Standards
ETR	Effective tax rate
EU	European Union
EU-IFRS	IFRS Accounting Standards as endorsed by the European Union
Euribor	Euro Interbank Offered Rate
Eurobond	A bond denominated in euros
Euroclear Nederland	The Dutch Central Securities Depository (Nederlands Centraal Instituut voor Giraal<br><br>Effectenverkeer BV).
Euronext Amsterdam	Euronext Amsterdam NV
EUV	A lithography technology that uses extreme ultraviolet (EUV) light with a wavelength of 13.5 nm –<br><br>this is the cutting-edge of lithography and provides the highest resolution possible.
EVP	Executive Vice President
Exchange Act	US Securities Exchange Act of 1934
EXE – EUV 0.55 NA	ASML’s second TWINSCAN platform for EUV lithography, also referred to as EUV 0.55 NA or<br><br>High NA EUV.
F
Fab	Semiconductor fabrication plant
FAQ	Frequently asked questions
Fast shipment	A fast shipment process skips some of the testing in our factory and provides our customers with<br><br>earlier access to wafer output capacity. When customer acceptance at FAT is not proven, this<br><br>leads to a deferral of revenue recognition until SAT.
FAT	Factory acceptance test
FDII	Foreign-derived intangible income
Feature	The elements that make up the pattern for a given layer of a microchip
F-Gas	Fluorinated gases (F-gases) is a commonly used word for a group of gases that contain fluorine.
Fitch	A leading provider of credit ratings, commentary and research for global capital markets
Flash	A type of non-volatile memory used for storing and transferring information
Foundry	A contract manufacturer of logic chips
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	405
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions (continued)

Name	Description
Fraunhofer	Applied research organization in Germany
FTE	Full-time equivalent
G
G-SEED	Green Standard for Energy and Environmental Design (South Korea)
GAAP	Generally accepted accounting principles
GDP	Gross domestic product
Gemba Walk	The Gemba Walk is an opportunity for staff to stand back from their day-to-day tasks to walk the<br><br>floor of their workplace to identify wasteful activities.
GHG	Greenhouse gas
GHG neutrality	We define GHG neutrality as having our remaining emissions, after ASML’s efforts to reach our<br><br>GHG emission reduction targets, compensated by the same amount of tonnes (metric tons) of<br><br>carbon credits that are verified against recognized quality standards.
GPU	Graphics processing unit
GRI	Global Reporting Initiative
GRI standards	GRI sustainability reporting standards
H
High-bandwidth<br><br>Memory	Type of computer memory designed to provide both high-bandwidth and low-power<br><br>consumption.
HMI	The brand name for ASML’s range of electron beam (e-beam) wafer inspection and metrology<br><br>systems.
Holistic lithography	Our approach to optimizing the entire microchip printing process and enabling affordable scaling<br><br>in chip technology by integrating lithography systems with computational modeling and wafer<br><br>metrology and inspection solutions to analyze and control the manufacturing process in real time.
Horizon Europe<br><br>Program	A public-private partnership that facilitates collaboration and strengthens the impact of research<br><br>and innovation in developing, supporting and implementing EU policies while tackling global<br><br>challenges.
HR&O	Human Resources and Organization
HTPCW	High-temperature process cooling water
I
IBM	Installed base management
IC	Integrated circuit
ICT	Information and communication technology
ID2PPAC	Integration of processes and modules for the 2 nm node meeting power performance area and<br><br>cost requirements.		Name	Description
---	---
IDM	Integrated device manufacturer
IEA	International Energy Agency
IFRS	International financial reporting standards
i-line	Light with a wavelength of 365 nm, generated by mercury vapor lamps and used in some<br><br>lithography systems.
ILO	International Labor Organization
Imaging	The transfer of a pattern onto the photoresist on a wafer using light.
imec	Interuniversitair Micro-Elektronica Centrum
Immersion lithography	A lithography technique that uses a pool of ultrapure water between the lens and the wafer to<br><br>increase the lens’s numerical aperture (ability to collect and focus light). This improves both the<br><br>resolution and depth of focus for the lithography system.
Inclusion	Creating a safe and trusting environment where everyone feels empowered to speak up and<br><br>make a difference and feels accepted for who they are and what they bring to the table.
Inclusion score	The overall score related to the questions included in the employment engagement survey that<br><br>specifically relate to ‘inclusion’.
Industrial site	Industrial buildings and offices combined at one location
Intel	Intel Corporation
Internal Control –<br><br>Integrated Framework<br><br>2013	Criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission
Internet of things (IoT)	A network of physical objects embedded with sensors, actuators, electronics and software that<br><br>allow the objects to collect and exchange data.
IP	Intellectual property
IPCC	Intergovernmental Panel on Climate Change
IPR	Intellectual property rights
IRA	Inflation Reduction Act of 2022
I-REC	International renewable energy certificate
IRS	Internal Revenue Service of the United States
ISO	International Organization for Standardization
ITM	Integrated Talent Management
J
JG13+	Job grade 13 and higher
JP Morgan Chase	US-based holder of our New York share register
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	406
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions (continued)

Name	Description
K
KLA-Tencor	KLA-Tencor Corporation
KPI	Key performance indicator
KPMG	KPMG Accountants N.V.
K-Reach	Act on the Registration and Evaluation of Chemicals in South Korea
KrF	Krypton fluoride
kt	Kilotonne or 1,000 tonnes (1 tonne = unit of mass equal to 1,000 kilograms)
kWh	Kilowatt-hour
L
LED	Light-emitting diode
LEED	Leadership in Energy and Environmental Design
LEP	Lifetime Extension Package
LGBTQIA+	Lesbian, gay, bisexual, transgender, queer, intersex, asexual and other identities
Lithography	Lithography, or photolithography, is the process in microchip manufacturing that uses light to<br><br>pattern parts on a silicon wafer.
Logic	Integrated devices such as microprocessors, microcontrollers and graphics processing units.<br><br>Also refers to companies that manufacture such devices.
LTI	Long-term incentive
Living wage	A wage that provides for the satisfaction of the needs of the employee and his/her family in the<br><br>light of national economic and social conditions.
M
Management Report	The sections Strategic report, Corporate governance, Supervisory Board report and Sustainability<br><br>statements together form the Management Report.
Memory	Microchips, such as NAND Flash and DRAM, that store information. Also refers to companies<br><br>that manufacture such chips.
Metalektro	Multi-employer union plan is managed by PME (Stichting Pensioenfonds van de Metalektro).
Metrology	The science of measurement on pattern quality before and during high-volume chip<br><br>manufacturing.
Minimum wage	A national or sub-national lowest wage level established by legislation or collective bargaining.
mm	Millimeter (one thousandth of a meter)
MNP	Make Next Platform
Moody's	An American credit rating agency that provides corporate ratings.		Name	Description
---	---
Mt	Megatonne, a metric unit equivalent to 1 million (106) tonnes, or 1 billion (109) kilograms
MW	Megawatt, a metric unit equivalent to one million (106) watt
myEHS system	ASML’s health and safety management system
N
N1-conversion	A category of 'non-employee' in temporary role (maximum of 12 months) through placement<br><br>agency, to move into a 'permanent employee' position.
NA	Numerical aperture
NACE	Statistical Classification of Economic Activities in the European Community
NAND	A binary logical operator that gives an output when it receives one or no input; a composite of<br><br>‘NOT AND’.
Nasdaq	Nasdaq Stock Market LLC
NEa	Dutch Emissions Authority (Nederlandse Emissieautoriteit)
Net bookings	Net bookings include all system sales orders and inflation related adjustments, for which written<br><br>authorizations have been accepted.
Net-zero target	Setting a net-zero target at the level of an undertaking aligned with meeting societal climate goals<br><br>means, according to the ESRS:<br><br>i. achieving a scale of value chain emissions reductions consistent with the abatement required<br><br>to reach global net-zero in 1.5˚C pathways; and<br><br>ii. neutralizing the impact of any residual emissions (after approximately 90–95% of GHG<br><br>emission reduction with the possibility for justified sectoral variations in line with a recognized<br><br>sectoral pathway) by permanently removing an equivalent volume of CO2.
NGO	Non-governmental organization
NIIT	Net investment income tax
Nikon	Nikon Corporation
NL	The Netherlands
nm	Nanometer (one billionth of a meter)
Node	A stepping stone in the chipmaking industry’s roadmap for smaller features and more advanced<br><br>microchips, describes and differentiates generations of semiconductor manufacturing<br><br>technologies and the chips made with them. Nodes with ‘smaller sizes’ refer to more advanced<br><br>technologies.
Non-employees	Includes both individual contractors supplying labor to ASML (‘self-employed people’) and<br><br>workers provided by ASML primarily engaged in ‘employment activities’ (NACE Code N78).
Non-GAAP	A measure of a company’s historical or future financial performance, financial position or cash<br><br>flows that are not calculated or presented in accordance with the GAAP.
NPR	Non-product-related
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	407
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions (continued)

Name	Description
NV	Naamloze vennootschap, referred to as NV
NXE – EUV 0.33 NA	ASML’s first TWINSCAN platform for EUV lithography with a numerical aperture of 0.33 that<br><br>provides 13 nm resolution to support advanced Logic and Memory chip production, also referred<br><br>to as EUV 0.33 NA.
NXT	An enhanced version of the original TWINSCAN system platform offering significantly improved<br><br>overlay and productivity.
O
OCI	Other comprehensive income
OECD	Organisation for Economic Co-operation and Development
Other worker	Individuals providing services connected to ASML operations or core activities not meeting the<br><br>definition of ‘employee’ or ‘non-employee’.
Overlay	The layer-to-layer alignment of chip structures
Own workforce	Aggregate of 'Employees' and 'Non-employees’
P
PAS	Philips Automatic Stepper – ASML’s first lithography platform that uses a single stage.
Pattern fidelity	A holistic measure of how well the desired pattern is reproduced on the wafer
Pattern fidelity control	A holistic approach to controlling the whole process of manufacturing advanced microchips in<br><br>high volumes that aims to improve overall yields. It draws data from production equipment and<br><br>computational lithography tools, analyzing it with techniques such as machine learning to provide<br><br>real-time feedback.
Patterning	The process of creating a pattern in a surface to build microchips
PCAOB	Public Company Accounting Oversight Board
PEP	Productivity Enhancement Package
Performance and<br><br>career development<br><br>reviews	As part of the ASML Develop and perform cycle, performance and career development reviews<br><br>refer to the annual evaluations, taking into account the employees’ performance and peer reviews<br><br>that result in a final overall rating provided by the employees’ direct superior.
Permanent employees	Permanent employees are those individuals with long-term employment contracts with ASML<br><br>wherein there is no established termination date.
PFAS	Perfluoroalkyl chemicals
PGP	Product generation process
Philips	Health technology company, headquartered in the Netherlands
PHLX Index	Semiconductor sector index
PIs	Performance indicators		Name	Description
---	---
PME	Bedrijfstakpensioenfonds Metalektro
PR	Product-related
Preference shares<br><br>foundation	Stichting Preferente Aandelen ASML
Preference share<br><br>option	An option to acquire cumulative preference shares in our capital
PwC	PricewaterhouseCoopers Accountants NV
Q
Q&As	Questions and answers
R
R&D	Research and development
RBA	Responsible Business Alliance
REACH	Registration, evaluation, authorization and restriction of chemicals
REC	Renewable Energy Certificate
Recordable work-<br><br>related injuries	Work-related injury that results in any of the following: (i) death, days away from work, restricted<br><br>work or transfer to another job, medical treatment beyond first aid, or loss of consciousness; or<br><br>(ii) significant injury diagnosed by a physician or other licensed healthcare professional, even if it<br><br>does not result in death, days away from work, restricted work or job transfer, medical treatment<br><br>beyond first aid or loss of consciousness.
Recoverable amount	The greater out of an asset’s fair value less costs to sell and its value in use
Remuneration Policy	The remuneration policy applicable to the Board of Management of ASML Holding NV
Reticle	A plate containing the pattern of features to be transferred to the wafer for each exposure
ROAIC	Return on average invested capital
RoHS	Restriction of hazardous substances
S
Standard & Poor's	A stock index of the United States that, due to its broad composition, gives a reliable picture of<br><br>developments in the American stock market.
SAQ	Self-assessment questionnaire
Sarbanes-Oxley Act	The Sarbanes-Oxley Act of 2002
SAT	Site acceptance test
SB	ASML’s Supervisory Board
SBTi	Science-Based Targets initiative
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	408
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions (continued)

Name	Description
SCC	Semiconductor Climate Consortium
Scope 1 CO2e<br><br>emissions	Direct carbon dioxide emissions from resources an organization owns or controls
Scope 2 CO2e<br><br>emissions	Indirect carbon dioxide emissions due to the energy an organization consumes
Scope 3 CO2e<br><br>emissions	All other indirect carbon dioxide emissions that occur in an organization’s value chain
Scope 3 CO2e<br><br>emissions intensity	All other indirect carbon dioxide emissions that occur in an organization’s value chain expressed<br><br>as a percentage of revenue or gross profit.
SDGs	United Nations' Sustainable Development Goals
SEC	The United States Securities and Exchange Commission
SEMI	Semiconductor Equipment and Materials International
SEMI S2	SEMI S2 – Safety Guideline, Environmental, Health and Safety Guideline for Semiconductor<br><br>Manufacturing Equipment, a set of performance-based EHS considerations for semiconductor<br><br>manufacturing equipment.
SEMI S23	SEMI S23 – Guide for Conservation of Energy, Utilities and Materials Used by Semiconductor<br><br>Manufacturing Equipment, guidelines for collecting, analyzing and reporting energy-consuming<br><br>semiconductor manufacturing equipment utility data.
SG&A	Selling, general and administrative expenses
Shrink	The process of developing smaller transistors for more advanced chips.
Significant<br><br>employment country	Operating countries in which ASML has 50 or more employees representing at least 10% of its<br><br>total number of employees.
Significant<br><br>employment region	Operating regions in which ASML has 50 or more employees representing at least 10% of its<br><br>total number of employees.
SNEP	System Node Extension Package
SOC	Security Operations Center
Social dialogue	Communication and exchanges between or among ASML, its organizations, representatives of<br><br>governments and workers’ representatives, on issues of common interest relating to economic<br><br>and social policy.
SSD	Solid-state drive
SS&P	Strategic sourcing and procurement
Star level	Startups accelerated by Eindhoven Startup Alliance / HighTechXL that show a multiple of<br><br>investment of above 10 times.
STEM	Science, technology, engineering and mathematics		Name	Description
---	---
STI	Short-term incentive
STR	Stichting Technology Rating, a non-profit organization
T
T-REC	Taiwan Renewable Energy Certificate
TCC	Total Cash Compensation
TCFD	Task Force on Climate-related Financial Disclosures
Technical competence	The capabilities and spread of technical expertise among our people, and the extent to which<br><br>they are embedded in our processes and operations.
Temporary employees	Temporary employees are those individuals with a fixed-term agreement with ASML wherein the<br><br>duration of the contract is agreed upon prior to its commencement.
Thales NL	Dutch branch of the international Thales Group
Throughput	The number of wafers a system can process per hour
Tier 1 (2, 3) supplier	Tier 1 suppliers are direct suppliers, whereas Tier 2, 3 and beyond refer to suppliers of our<br><br>suppliers.
TJ	Terajoule (one trillion joules)
TNO	Nederlandse Organisatie voor Toegepast Natuurwetenschappelijk Onderzoek (Netherlands<br><br>Organisation for Applied Scientific Research)
Top management	Top management within ASML has been defined as senior leadership (job grade 13) and higher<br><br>excluding the Supervisory Board.
Training hours	Hours of internal and external learning completed by employees and registered on ASML learning<br><br>platforms.
Transistor	A semiconductor device that is the fundamental building block of microchips
TSCA	Toxic Substances Control Act
TSMC	Taiwan Semiconductor Manufacturing Company Ltd.
TSR	Total shareholder return
TU/e	Technische Universiteit Eindhoven
TWINSCAN	ASML’s unique lithography system platform, with two complete wafer stages to allow one wafer<br><br>to be mapped while another is being exposed, thereby enabling higher accuracy and throughput.
U
UNGP	United Nations Guiding Principles on Business and Human Rights
US	United States
US GAAP	Generally accepted accounting principles in the United States of America
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	409
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Definitions (continued)

Name	Description
V
Vanderlande	A material handling and logistics automation company based in the Netherlands
VAT	Value-added tax
VER(s)	Voluntary emission reduction (certificates)
VIE	Variable interest entity
VLSI	VLSI Research Inc.
VNO-NCW	The Confederation of Netherlands Industry and Employers
VOC	Volatile organic compound
VP	Vice president
VPA	Volume purchase agreement
W
WACC	Weighted average cost of capital
Wafer inspection	The process of locating and analyzing individual chip defects on a wafer
Wafer metrology	The process of measuring the quality of patterns on a wafer
Waste intensity	The total waste in millions of kilograms (excluding construction waste) divided by revenue (in<br><br>millions of euros).
Wavelength	The distance between two peaks of a wave such as light. The shorter the wavelength of light<br><br>used in a lithography system, the smaller the features the system can resolve.
Website	asml.com
Works Council	Works Council of ASML Netherlands BV
wph	Wafers per hour
X
XT	ASML’s second TWINSCAN platform for DUV lithography, with two complete wafer stages to<br><br>allow one wafer to be mapped while another is being exposed, thereby enabling higher accuracy<br><br>and throughput.
Y
YieldStar	ASML’s optical diffraction-based wafer metrology platform
Z
ZEISS	Carl Zeiss AG
STRATEGIC REPORT	CORPORATE GOVERNANCE	SUSTAINABILITY	FINANCIALS	ASML Annual Report 2024	410
---	---	---	---	---	---
Financial statements	Notes	Appendices	Definitions
---	---	---	---

Signatures

ASML Holding NV hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly

caused and authorized the undersigned to sign this Annual Report on Form 20-F on its behalf.

ASML Holding NV (Registrant)

/s/ Christophe D. Fouquet

Name: Christophe D. Fouquet

Title: President, CEO and Chair of the Board of Management

Dated: March 5, 2025

/s/ Roger J.M. Dassen

Name: Roger J.M. Dassen

Title: Executive Vice President, CFO and member of the Board of Management

Dated: March 5, 2025

TCFD Report	411

Exhibit index

Exhibit No.	Description
1.1	Articles of Association of ASML Holding NV (English translation) (dated May 12, 2022)
2.1	Description of Securities registered under Section 12 of the Exchange Act (Incorporated by reference to the<br><br>Registrant's Annual Report on Form 20-F for the year ended December 31, 2021)
4.1	Form of Indemnity Agreement between ASML Holding NV and members of its Board of Management<br><br>(Incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year ended December 31,<br><br>2003
4.2	Form of Indemnity Agreement between ASML Holding NV and members of its Supervisory Board (Incorporated<br><br>by reference to the Registrant’s Annual Report on Form 20-F for the year ended December 31, 2003)
4.3	Nikon-ASML Patent Cross-License Agreement, dated December 10, 2004, between ASML Holding NV and<br><br>Nikon Corporation (Incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year<br><br>ended December 31, 2014)  1
4.4	ASML/Carl Zeiss Sublicense Agreement, 2004, dated December 10, 2004, between Carl Zeiss SMT AG and<br><br>ASML Holding NV (Incorporated by reference to the Registrant’s Annual Report on Form 20-F for the  year<br><br>ended December 31, 2004)  1
4.5	ASML Board of Management Umbrella Share Plan (Incorporated by reference to the Registrant’s Registration<br><br>Statement on Form S-8 filed with the SEC on April 13, 2015 (file No. 333-203390))
4.6	Partnership and Joint Venture Agreement, among Carl Zeiss AG, ASML Holding NV and Carl Zeiss SMT<br><br>Holding Management GmbH, dated June 29, 2017 (Incorporated by reference to the Registrant’s Annual<br><br>Report on Form 20-F for the fiscal year ended December 31, 2017)
4.7	Settlement and Cross License Agreement, dated February 18, 2019, among Nikon Corporation, ASML Holding<br><br>NV and Carl Zeiss SMT GmbH and, with regard to sections 3(b) 2.2.1, 3.8, 6.3.3, 6.6, 10.6, 10.8, 10.14 and<br><br>10.15, Carl Zeiss AG  (Incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year<br><br>ended December 31, 2019)  3
4.8	ASML – SMT Business Agreement, dated July 21, 2021, between ASML Netherlands BV and Carl Zeiss SMT<br><br>GmbH3 (incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year ended<br><br>December 31, 2022)
8.1	List of Main Subsidiaries  2
12.1	Certification of CEO and CFO Pursuant to Rule 13a–14(a) of the Securities Exchange Act of 1934      2
13.1	Certification of CEO and CFO Pursuant to Rule 13a–14(b) of the Securities Exchange Act of 1934      2		Exhibit No.	Description
---	---
15.1	Consent of Independent Registered Public Accounting Firm  2
15.2	Letter dated March 5, 2025 from KPMG Accountants N.V.
19.1	ASML Insider Trading Rules  (incorporated by reference to the Registrant’s Annual Report on Form 20-F for the<br><br>year ended December 31, 2023)
97.1	Clawback Policy (incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year ended<br><br>December 31, 2023)
101.INS	XBRL Instance Document  2
101.SCH	XBRL Taxonomy Extension Schema Document  2
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document    2
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document    2
101.LAB	XBRL Taxonomy Extension Label Linkbase Document    2
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document    2
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)      2

1.Certain information omitted pursuant to a request for confidential treatment filed separately with the SEC.

2.Filed at the SEC herewith.

3.Portions of this exhibit have been omitted because (i) they are not material and (ii) the registrant customarily and actually treats the information

as private or confidential.

As of December 31, 2024, ASML is party to six outstanding debt instruments (senior notes) under which the total

amount of securities under each individual debt instrument does not exceed 10% of the total assets of ASML and

its subsidiaries on a consolidated basis. Pursuant to paragraph 2(b) (i) of the instructions to the exhibits to Form 20-

F, ASML agrees to furnish a copy of such instruments to the SEC upon request. ASML's senior notes are:

•3.500% ASML Holding NV Fixed Rate Senior Notes due 2025 (XS2631416950)

•1.375% ASML Holding NV Fixed Rate Senior Notes due 2026 (XS1405780963)

•1.625% ASML Holding NV Fixed Rate Senior Notes due 2027 (XS1527556192)

•0.625% ASML Holding NV Fixed Rate Senior Notes due 2029 (XS2166219720)

•0.250% ASML Holding NV Fixed Rate Senior Notes due 2030 (XS2010032378)

•2.250% ASML Holding NV Fixed Rate Senior Notes due 2032 (XS2473687106)

Document

Exhibit 2.1

Description of Securities Registered under Section 12 of the Exchange Act

Title of Each Class	Name of Each Exchange on Which Registered
Ordinary Shares	The Nasdaq Stock Market LLC
(Nominal value 0.09 per share)

All values are in Euros.

Capitalized terms used but not defined herein have the meanings given to them in ASML’s annual report on Form 20-F for the year ended December 31, 2024 (the “2024 Form 20-F”).

The following description of our ordinary shares includes a summary of certain provisions of our Articles of Association. The summary does not purport to be complete and is qualified in its entirety by reference to our Articles of Association, which have been filed with the SEC, and the applicable provisions of Dutch law.

General

Our ordinary shares are listed for trading in the form of registered ASML Nasdaq shares and in the form of registered ASML Euronext Amsterdam shares. The principal trading market of our ordinary shares is Euronext Amsterdam (trading symbol: ASML). Our ordinary shares also traded on Nasdaq (trading symbol: ASML).

ASML’s authorized share capital amounts to €126.0 million and is divided into:

Type of shares	Amount 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	2022	2023	2024
Issued ordinary shares with nominal value of €0.09	394,589,411	393,421,721	393,283,720
Issued ordinary treasury shares with nominal value of €0.09	8,548,631	6,162,857	546,972
Total issued ordinary shares with nominal value of €0.09	403,138,042	399,584,578	393,830,692

As of December 31, 2024, 90,315,092 ordinary shares were held by 292 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 register in the Netherlands, held by us at our address at 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.

Our shares listed on Nasdaq are registered with JPMorgan Chase Bank N.A., our New York Transfer Agent, pursuant to the terms of the Transfer Agent Agreement between ASML and JPMorgan Chase Bank N.A. Our shares listed on Euronext Amsterdam are held in dematerialized form through the facilities of Euroclear Nederland, the Dutch centralized securities custody and administration system. The New York Transfer Agent charges shareholders a fee of up to USD 5.00 per 100 shares for the exchange of our shares listed at Nasdaq for our shares listed at Euronext Amsterdam and vice versa.

Dividends payable on our shares listed at Nasdaq are declared in euro and converted to US dollars at the rate of exchange at the close of business on the date determined by the Board of Management. The resulting amounts are distributed through the New York Transfer Agent and no charge is payable by holders of our shares listed at Nasdaq in connection with this conversion or distribution.

Pursuant to the terms of the Transfer Agent Agreement, we have agreed to reimburse the New York Transfer Agent for certain out of pocket expenses, including in connection with any mailing of notices, reports or other communications made generally available by ASML to holders of ordinary shares. The New York Transfer Agent has waived its fees associated with routine services to ASML associated with our shares listed at Nasdaq. In addition, the New York Transfer Agent in consideration of its acting as Transfer Agent has agreed to make a contribution toward covering certain expenses incurred by ASML in connection with the issuance and transfer of our shares listed on Nasdaq. In the year ended December 31, 2024, the Transfer Agent contributed USD 0.8 million toward coverage of expenses incurred by ASML (which mainly comprised audit, advisory, legal and listing fees incurred due to the existence of our share listing on Nasdaq).

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.

2024 authorization to issue shares

At our 2024 AGM, the Board of Management was authorized from April 24, 2024, through October 24, 2025, 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 24, 2024, plus an additional 5% of our issued share capital at April 24, 2024, that may be issued in connection with mergers, acquisitions and/or (strategic) alliances. Our shareholders also authorized the Board of Management through October 24, 2025, 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.

2024 authorization to repurchase shares

At the 2024 AGM, the Board of Management was authorized, subject to Supervisory Board approval, to repurchase through October 24, 2025, up to a maximum of 10% of our issued share capital at April 24, 2024, 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.

Read more details on our share buyback program in

Consolidated financial statements - Notes to the Consolidated financial statements - Note 22 Shareholders’ equity

ASML Preference Shares Foundation

The ASML Preference Shares Foundation (Stichting Preferente Aandelen ASML), a foundation organized under Dutch law, has been granted an option right to acquire preference shares in the share capital of ASML. The Foundation may exercise the Preference Share Option in situations where, in the opinion of the Foundation’s Board of Directors, our interests, our business or the interests of our stakeholders are at stake. This may be the case if:

•A public bid for our shares is 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 to such a bid; or

•In the opinion of the Foundation’s Board of Directors, the (attempted) exercise of the voting rights by one shareholder or more shareholders, acting in concert, is materially in conflict with our interests, our business or our stakeholders.

Objectives of the Foundation

The Foundation’s objectives are to look after our interests and those of ASML and the enterprises maintained by and/or affiliated in a group with ASML, in such a way that our interests and those of enterprises and all parties concerned are safeguarded in the best possible way, and 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, and everything related to the above or possibly conducive thereto. 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 gives the Foundation the right to acquire such number of cumulative preference shares as the Foundation will require, provided that the aggregate nominal value of such number of cumulative preference shares shall not exceed the aggregate nominal value of the ordinary shares issued at the time of exercise of the Preference Share Option. The subscription price will be equal to their nominal value. Only one-quarter of the subscription price would be payable at the time of initial issuance of the cumulative preference shares, with the other three-quarters of the nominal value only being payable when we call up this amount. Exercise of the Preference Share Option could effectively dilute the voting power of the outstanding ordinary shares by one-half.

Cancellation of cumulative preference shares

Cancellation and repayment of the 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.

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.

Board of Directors

The Foundation is independent of ASML. The Board of Directors of the Foundation is composed of four independent members from the Netherlands’ business and academic communities. The Foundation’s Board of Directors is composed, per December 31, 2024, of the following members: Mr. A.P.M. van der Poel, Mr. S. Perrick, Mr. S.S. Vollebregt and Mr. J.B.M. Streppel. Effective per January 1, 2025, Mr. A.P.M. van der Poel was replaced by Mr. W. A. Pelsma.

Other than the arrangements made with the Foundation as described above, ASML has not established any other anti-takeover devices.

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.

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

Document

Exhibit 8.1

List of main subsidiaries

Legal Entity	Country of Incorporation
Subsidiaries of ASML Holding NV1:
ASML Belgium BV	Belgium (Antwerp)
Hermes Microvision Co., Ltd. (Beijing)	China (Beijing)
ASML (Shanghai) Electrical Equipment Co. Ltd.	China (Shanghai)
ASML (Beijing) Equipment Repair Company Limited	China (Beijing)
ASML (Shanghai) Lithography Facilities Science and Technology Co. Ltd.	China (Shanghai)
Cymer Semiconductor Equipment (Shanghai) Co. Ltd.	China (Shanghai)
Hermes Microvision (Shanghai) Co., Ltd	China (Shanghai)
Brion Technologies (Shenzhen) Co. Ltd.	China (Shenzhen)
ASML France S.a.r.l.	France (Crolles)
ASML Verwaltungs GmbH i.l.	Germany (Berlin)
ASML Berlin GmbH (formerly Berliner Glas GmbH)	Germany (Berlin)
ASML Germany GmbH	Germany (Dresden)
ASML Participations Germany GmbH	Germany (Dresden)
ASML Hong Kong Ltd.	Hong Kong SAR
ASML Ireland Ltd.	Ireland (Dublin)
ASML Israel (2001) Ltd.	Israel (Kiryat Gat)
ASML Italy S.r.l.	Italy (Avezzano)
ASML Japan Co. Ltd.	Japan (Tokyo)
Cymer Japan, Inc.	Japan (Tokyo)
ASML Equipment Malaysia Sdn. Bhd.	Malaysia (Georgetown, Pulau Pinang)
Cymer BV	Netherlands (Veldhoven)
ASML Netherlands BV	Netherlands (Veldhoven)
ASML Trading BV	Netherlands (Veldhoven)
Hermes Microvision Incorporated BV	Netherlands (Veldhoven)
ASML Singapore Pte. Ltd.	Singapore
Cymer Singapore Pte Ltd.	Singapore
ASML Korea Co. Ltd.	South Korea (Gyeonggi-Do)
ASML Repair Center Korea Ltd.	South Korea (Gyeonggi-Do)
Cymer Korea Inc.	South Korea (Gyeonggi-Do)
ASML Taiwan Ltd.	Taiwan (Hsinchu City)
ASML Technology Taiwan Ltd.	Taiwan (Hsinchu City)
Cymer Southeast Asia Ltd.	Taiwan (Hsinchu City)
ASML (UK) Ltd.	UK (Edinburgh (Scotland))
Cymer, LLC	US (Carson City, Nevada)
EO Technical Solutions LLC	US (Vancouver, Washington)
ASML US, LLC	US (Wilmington, Delaware)
ASML US, LP	US (Wilmington, Delaware)

1. All of our subsidiaries are (directly or indirectly) wholly-owned.

Document

Exhibit 12.1

Certification of the Chief Executive Officer

I, Christophe D. Fouquet, certify that:

1.I have reviewed this Annual Report on Form 20-F of ASML Holding NV;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the Financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report

4.The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the company and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the Annual Report on Form 20-F that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: March 5, 2025

/s/ Christophe D. Fouquet

Name: Christophe D. Fouquet

Title: President, CEO and Chair of the Board of Management

Certification of the Chief Financial Officer

I, Roger J.M. Dassen, certify that:

1.I have reviewed this Annual Report on Form 20-F of ASML Holding NV;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the Financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the company and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the Annual Report on Form 20-F that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: March 5, 2025

/s/ Roger J.M. Dassen

Name: Roger J.M. Dassen

Title: Executive Vice President, CFO and member of the Board of Management

Document

Exhibit 13.1

Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report on Form 20-F of ASML Holding NV for the fiscal year ended December 31, 2024 as filed with the SEC on the date hereof, Christophe D. Fouquet, as CEO of the Company, and Roger J.M. Dassen, as CFO of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ Christophe D. Fouquet

Name: Christophe D. Fouquet

Title: President, CEO and Chair of the Board of Management

Date: March 5, 2025

/s/ Roger J.M. Dassen

Name: Roger J.M. Dassen

Title: Executive Vice President, CFO and member of the Board of Management

Date: March 5, 2025

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

This certification accompanies the Report pursuant to section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of section 18 of the Securities Exchange Act of 1934.

Document

Exhibit 15.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements (No. 333-116337, 333-126340, 333-136362, 333-141125, 333-142254, 333-144356, 333-147128, 333-153277, 333-162439, 333-170034, 333-188938, 333-190023, 333-192951, 333-203390, 333-219442, and 333-227464) on Form S-8 of our report dated March 5, 2025, with respect to the Consolidated financial statements of ASML Holding NV and the effectiveness of internal control over financial reporting.

/s/ KPMG Accountants N.V.

Amstelveen, the Netherlands.

March 5, 2025

Document

Exhibit 15.2

Letter dated March 5, 2025 from KPMG Accountants N.V.

To: Securities and Exchange Commission

Washington, D.C. 20549

Ladies and Gentlemen:

We were previously principal accountants for ASML Holding NV (“the Company”) and, under the date of March 5, 2025, we reported on the consolidated financial statements of the Company as of and for the years ended December 31, 2024 and 2023, and the effectiveness of internal control over financial reporting as of December 31, 2024. On March 5, 2025, the auditor-client relationship ceased.

We have read the Company’s statements included under Item 16F of its Form 20-F dated March 5, 2025, and we agree with such statements, except that we are not in a position to agree or disagree with the Company’s statements in the third paragraph within Item 16F that, during the fiscal years ended December 31, 2024 and 2023 and any subsequent period through March 5, 2025, neither the Company nor anyone on its behalf has consulted with PricewaterhouseCoopers Accountants NV (“PwC”) regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered with respect to the consolidated financial statements of the Company and either a written report or oral advice was provided to the Company that PwC concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue; or (ii) any matter that was the subject of a disagreement as that term is used in Item 16F(a)(1)(iv) of Form 20-F or a “reportable event” as described in Item 16F(a)(1)(v) of Form 20-F.

Very truly yours,

/s/ KPMG Accountants N.V.

Amstelveen, the Netherlands.

March 5, 2025