ASML Exhibit 99 Annual Report 2021 Contents | --- | --- | --- | --- | |-------|----------------------------------------------------|-------|----------------------------------------------------| | | 2021 at a glance | | Supervisory Board | | | 5 Message from the CEO | 142 | Message from the Chair of our Supervisory Board | | | 7 2021 Highlights | | 144 Supervisory Board report | | | Who we are and what we do | | 160 Remuneration report | | | 9 Our company | | 174 Directors' Responsibility Statement | | | 14 ...

ASML ANNUAL REPORT 2021 1 ASML Annual Report 2021 Contents | | 2021 at a glance | | Supervisory Board | | --- | --- | --- | --- | | 6 | Message from the CEO | 140 | Message from the Chair of our Supervisory Board | | 8 | 2021 Highlights | 142 | Supervisory Board report | | | | 157 | Remuneration report | | | Who we are and what we do | | | | 10 | Our company | | Consolidated Financial Statements | | 15 | Message from the CTO | 172 | Report of Independent Registered Public Accounting Firm | | 17 | How we inn ...

ASML Holding N.V. Conference Call Summary Company Overview - **Company**: ASML Holding N.V. (NASDAQ: ASML) - **Event**: UBS Global TMT Virtual Conference - **Date**: December 7, 2021 Key Industry Insights Demand Outlook - **Logic Demand**: Strong demand driven by digital transformation, 5G, AI, and high-performance computing [2][3] - **Memory Demand**: Anticipated growth in the high teens for memory, driven by servers and smartphones [3][4] - **EUV and DUV**: Continued growth expected in both EUV (Extreme Ultraviolet) and DUV (Deep Ultraviolet) segments [4][6] Capacity Plans - **EUV Systems**: Planning for 55 EUV systems in 2022, with a capacity increase of over 2x from 2020 to 2025 [4][19] - **DUV Capacity**: Expected to increase DUV unit output by 1.5x, with productivity improvements leading to a potential 2x effective capacity increase [6][20] Supply Chain Challenges - **Material Shortages**: Experienced delays due to material shortages and logistics issues, impacting revenue recognition [8][9] - **Proactive Management**: Ongoing efforts to improve communication with supply chain partners to mitigate risks [9][10] Financial Performance Revenue and Margins - **Gross Margin Target**: Expected gross margin of 54% to 56% by 2025, with a focus on improving operating margins [56][57] - **R&D and SG&A**: Projected R&D expenses of $3.6 billion and SG&A of $1 billion by 2025 [56] Technological Developments Gate-All-Around Technology - **Impact on Lithography**: Gate-all-around technology expected to enhance control at smaller features, leading to increased lithography intensity [30][32] - **Adoption Timeline**: Initial adoption planned for 2022, with further implementations in subsequent years [34] 3D DRAM and EUV - **EUV Adoption in DRAM**: All major DRAM customers planning to implement EUV in their product roadmaps [37][39] - **Future of 3D DRAM**: Ongoing exploration of next-generation memory technologies, with EUV playing a critical role [38][39] Geopolitical Considerations - **China Export Licenses**: ASML requires export licenses from the Dutch government to ship EUV systems to China, currently awaiting approval [28] - **DUV Shipments**: Continued shipments of DUV systems to China, as current nodes do not require EUV [28] Conclusion - **Growth Drivers**: Strong demand across logic and memory segments, with significant capacity expansion plans in place - **Challenges**: Supply chain issues and geopolitical tensions remain key risks, but proactive management strategies are being implemented - **Long-Term Outlook**: Positive growth trajectory anticipated, with advancements in technology and increased adoption of EUV and High NA systems expected to drive future performance [57][58]

Financial Data and Key Metrics Changes - Net sales for Q2 2021 were €4.0 billion, within guidance, with a gross margin of 50.9%, above guidance due to additional software upgrade business [8][9] - Net income for Q2 was €1.0 billion, representing 25.8% of net sales, resulting in an EPS of €2.52 [9] - Cash, cash equivalents, and short-term investments at the end of Q2 were €5.4 billion [10] Business Line Data and Key Metrics Changes - Net system sales were €2.9 billion, with 72% from Logic and 28% from Memory [9] - Installed Base Management sales were €1.1 billion, above guidance due to increased upgrade business [9] - Q2 net system bookings reached a record €8.3 billion, with €4.9 billion for EUV systems [10] Market Data and Key Metrics Changes - Logic revenue is now expected to grow around 35% year-on-year, up from the previous estimate of 30% [13][14] - Memory revenue is expected to grow around 60% year-on-year, an increase from the previous estimate of 50% [14] - Installed Base revenue is now expected to grow around 15% year-on-year, up from the previous estimate of 10% [14] Company Strategy and Development Direction - The company plans to increase factory output to meet growing customer demand, expecting overall sales growth of about 35% for the year [13][16] - The company is focusing on increasing capacity for both EUV and deep UV systems, with plans for 55 EUV systems in 2022 and over 60 in 2023 [22] - The company anticipates long-term demand growth driven by digital transformation, 5G, AI, and the push for technological sovereignty [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across all market segments, with a significant increase in order intake reflecting a healthy market environment [10][19] - The company expects continued strong demand for semiconductors, driven by chip shortages and the digital transformation [16][18] - Management expressed confidence in long-term growth outlook, citing structural underestimations of industry growth over the past 15 years [27] Other Important Information - The company announced a new share buyback program of up to €9 billion, replacing the previous €6 billion program [12] - A final dividend of €1.55 per ordinary share was paid, totaling €639 million, marking a 15% increase compared to the previous year [11] Q&A Session Summary Question: How is the demand for dry DUV systems split between leading-edge and trailing-edge applications? - Management indicated strong demand from both leading-edge and trailing-edge customers, particularly in microcontrollers and power applications [25][26] Question: How does the company assess the risk of overcapacity in light of strong demand? - Management believes the underlying growth trend is real and plans to build capacity accordingly, citing historical underestimations of industry growth [27][28] Question: Will the catch-up effect in DUV orders extend into the second half of 2022? - Management noted that the catch-up effect could extend into the second half of 2022, depending on supply chain confirmations [30][32] Question: What is the outlook for EUV revenue and its mix? - Management confirmed that the increase in EUV revenue outlook is due to stronger manufacturing capabilities and richer configurations [33][34] Question: Will the company provide details on DUV capacity additions? - Management intends to provide more insights on DUV capacity once confirmations from key suppliers are received [36][37] Question: How does the company view the potential for gross margin improvement in EUV services? - Management expects EUV service gross margins to reach corporate levels in about four years, driven by cost reductions and efficiency improvements [52][53] Question: What is the outlook for DRAM EUV business in 2022 and 2023? - Management anticipates continued growth in EUV shipments for DRAM, driven by capacity build-outs, despite potential changes in order lead times [56][57] Question: How much of this year's revenue is driven by inventory drawdown? - Management indicated that this year's revenue includes a significant contribution from inventory depletion, particularly in immersion sales [67][68]

ASML Holding N.V. Conference Call Summary Company Overview - **Company**: ASML Holding N.V. (NASDAQ: ASML) - **Event**: Evercore ISI Inaugural TMT Conference - **Date**: June 8, 2021 - **Participants**: - Peter Convertito - Director, Investor Relations - C.J. Muse - Senior Analyst, Evercore ISI Key Industry Trends 1. **Cyclical Trend**: - Companies are looking to add capacity that was postponed during the pandemic, leading to increased demand for Deep UV tools [4] 2. **Secular Trend**: - Long-term drivers include 5G, AI, autonomous driving, and virtual reality, which are accelerating demand for high-performance computing and associated memory [5][6] - The pandemic has accelerated the shift towards a digital economy, enhancing the demand for edge computing and IoT devices [6] 3. **Technological Sovereignty**: - Countries like China, the U.S., and Europe are focusing on developing their own semiconductor capabilities, impacting long-term demand [7] Financial Outlook and Capacity 1. **EUV Capacity**: - ASML plans to generate EUR 5.8 billion in revenue from EUV tools this year, with an increase to support 55 systems next year [8] - Transitioning from 3400C to 3600D tools will result in a 15% increase in wafer output [8][9] 2. **EUV Tool Output**: - Next year’s output from 55 D tools will be equivalent to 65 C tools, enhancing customer value [9] 3. **Memory Business Growth**: - Memory sector is expected to grow from 10% to 20% of EUV business in 2022, driven by increased capacity utilization [15] Customer Relationships and Contracts 1. **Long-term Agreements**: - Customers are discussing longer-term spending plans, but the nature of agreements remains similar to past practices [11] - Increased commitments from customers are noted, particularly in down payments for tools [13] 2. **Installed Base Management**: - The Installed Base Management business is expected to grow at a 10% CAGR, with variations based on service and upgrade cycles [37][38] Gross Margin and Financial Performance 1. **Gross Margin Expectations**: - Non-EUV systems are expected to maintain low-to-mid 50% gross margins, while EUV margins are projected to rise from low 40% to around 50% as new tools are introduced [40][41] 2. **Service Revenue**: - EUV service revenues are expected to contribute 5% to 6% of the ASP per tool annually after the warranty period, enhancing overall gross margins [43] 3. **Capital Return Policy**: - ASML aims to maintain EUR 2.5 billion on hand, returning excess capital through dividends and share buybacks [45] Future Outlook 1. **Technological Advancements**: - Continued development in metrology and inspection technologies, with potential revenue growth from E-beam systems expected in 2023 [48] 2. **Investor Day Insights**: - Further discussions on capacity, demand trends, and technological advancements are anticipated during the upcoming Investor Day [46][48] Additional Insights - The transition to new technologies and the impact of supply chain constraints are critical factors influencing ASML's operational strategies [20][21] - The company is actively evaluating whether current demand trends are transient or indicative of a longer-term shift [20][34]