Financial Data and Key Metrics Changes - In 2024, ASML achieved approximately 3% revenue growth compared to 2023, sustaining a gross margin of 51.3% [34][39] - Net bookings were slightly below previous years but still resulted in a strong backlog number [35][39] - EUV revenue decreased by 9% to €8.3 billion, while DPUV revenue increased by 4% to €12.8 billion [36][39] - The installed base business grew by 16% to €6.5 billion, driven by service and upgrades [39] Business Line Data and Key Metrics Changes - The application business grew by 20%, primarily due to the success of the YieldStar and multi-beam tools [37] - EUV systems were recognized in revenue for multiple tools, indicating successful customer acceptance [36] - DPUV technology investments continue to be significant, with new product introductions enhancing competitiveness [39][91] Market Data and Key Metrics Changes - The memory business was notably strong in 2024, driven by AI demands for high bandwidth memory [40] - The China market showed robust growth, particularly in memory and mainstream logic applications [41] - The installed base business in China also contributed significantly to overall growth [42] Company Strategy and Development Direction - ASML's strategy focuses on advancing technology to meet customer needs, particularly in EUV and DPUV [12][22] - The company aims to reduce EUV costs to increase adoption among customers, transitioning from multi-patterning to single exposure [23][86] - Continued investment in capacity expansion across the U.S., Europe, and Asia is planned to meet future demand [29] Management's Comments on Operating Environment and Future Outlook - Geopolitical uncertainties and tariff implications are acknowledged as potential risks to revenue [13][50] - The company expects a revenue opportunity between €30 billion and €35 billion for 2025, with a gross margin between 51% and 53% [51] - Management remains optimistic about long-term market strength despite short-term uncertainties [29][50] Other Important Information - ASML is committed to sustainability, achieving a 54% reduction in energy consumption per wafer pass since 2018 [57][94] - The company has made significant progress in community engagement and ESG initiatives, including affordable housing projects [31][60] Q&A Session All Questions and Answers Question: Impact of U.S. tariffs on ASML's financials - Management discussed the potential for indirect impacts from tariffs and the need for careful monitoring of economic conditions [64][65] - The company believes it has the market power to pass on some tariff costs to customers, but the extent remains uncertain [65] Question: Reliance on TSMC and competition - ASML does not fear increased reliance on TSMC, emphasizing strong long-term relationships with multiple customers [76] - The company expects significant orders from TSMC as they ramp up production in advanced nodes [78] Question: Development of EUV alternatives in China - Management acknowledged that while China is attempting to develop EUV alternatives, significant technological barriers remain [81][84] - ASML maintains a strong market position and continues to invest in R&D to stay competitive [91] Question: High NA EUV roadmap and cost considerations - ASML is focused on ensuring that the cost of high NA EUV is competitive with existing technologies to drive adoption [86][88] Question: Market share and competition from Nikon - ASML recognizes competition but remains confident in its technological advantages and market share in immersion DUV [90][92] Question: Energy consumption reduction in EUV tools - The company is committed to further reducing energy consumption in EUV tools, aiming for an 80% reduction by 2027 [94]