Financial Data and Key Metrics Changes - In Q2 2025, total net sales reached €7.7 billion, at the upper end of guidance, primarily due to the revenue recognition of one High NA system and additional upgrade business [5] - Net system sales were €5.6 billion, with €2.7 billion from EUV sales and €2.9 billion from non-EUV sales, driven by Logic at 69% and Memory at 31% [5] - Gross margin for the quarter was 53.7%, above guidance, driven by an increase in upgrade business and lower costs [6] - Net income in Q2 was €2.3 billion, representing 29.8% of total net sales, resulting in earnings per share of €5.9 [6] - Q2 net system bookings were €5.5 billion, with €2.3 billion from EUV and €3.2 billion from non-EUV, weighted towards Logic at 84% [7] Business Line Data and Key Metrics Changes - Installed base management sales for the quarter were €2.1 billion, above guidance [6] - The upgrade business has been strong, with expectations for installed base management revenue to grow more than 20% over last year [11] - The company expects overall EUV revenue growth of around 30% in 2025 compared to 2024 [11] Market Data and Key Metrics Changes - Revenue from China is expected to account for over 25% of total revenue in 2025, reflecting its proportion in the backlog [10] - The company anticipates strong demand related to AI for both logic and memory, with system revenue expected to increase in 2025 compared to 2024 [9][12] Company Strategy and Development Direction - The company continues to focus on advancing its EUV technology and building a comprehensive EUV portfolio to meet customer needs [15] - The strategy includes transitioning customers to advanced nodes and increasing the number of EUV layers, which is expected to drive growth [18] - The company is preparing for a potential growth year in 2026, but acknowledges uncertainties due to macroeconomic and geopolitical factors [12][56] Management's Comments on Operating Environment and Future Outlook - Management highlighted that while demand remains strong, uncertainties related to macroeconomic and geopolitical developments are affecting customer capital expenditure decisions [12][56] - The company expects Q3 total net sales to be between €7.4 billion and €7.9 billion, with a gross margin between 50-52% [14] - Management remains optimistic about long-term growth driven by AI, despite short-term uncertainties [18][88] Other Important Information - The company paid a final dividend of €1.84 per ordinary share, with a total dividend for 2024 of €6.4 per ordinary share [7] - Share buybacks totaled around €1.4 billion in Q2 2025, bringing the total for the buyback program to €5.8 billion [8] Q&A Session Summary Question: Can you elaborate on the EUV capacity and revenue expectations? - Management confirmed that EUV growth is expected to be about 30%, with the delta attributed to the strong performance of the installed base business [24][26] Question: How does the pricing strategy relate to tool value? - Management stated that the ability to increase tool prices is linked to improvements in productivity and performance, which enhances customer value [32] Question: What is the outlook for the DUV business? - Management indicated that the DUV business is expected to remain stable, with China showing stronger demand than previously anticipated [27][44] Question: What has changed in customer conversations regarding 2026? - Management noted increased customer caution due to tariff discussions and geopolitical uncertainties, impacting their investment decisions [56][76] Question: Can you provide insights on memory trends and HBM driven by AI? - Management confirmed that memory revenue remains strong, driven by HBM demand, and expects continued growth in this segment [102]