EX-99.3 4 ex99-3.htm EXHIBIT 99.3 - PRESENTATION
Veldhoven, the Netherlands, 26 April 2017 Annual General Meeting 2017 Public

April 26, 2017 2 Public Forward looking statements This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to expected trends and outlook, including expected customer insertion of EUV in volume manufacturing, including expected volume orders, systems backlog, expected financial results and trends for the second quarter of 2017, including expected sales, other income, gross margin, R&D and SG&A expenses, effective annualized tax rate, EUV revenue and NXE shipments, expected industry trends and expected trends in the business environment, statements with respect to EUV targets and ASML’s commitment to secure system performance, shipments and support for volume manufacturing, including availability, productivity, throughput and shipments, including timing of shipments and the ability to support a larger installed base, expected industry adoption of EUV and statements with respect to the intent of customers to insert EUV into production, statements with respect to ASML’s partnership with Carl Zeiss SMT, including pending regulatory approval, ASML’s support of Carl Zeiss SMT’s R&D and capex and the development of next generation EUV (High NA), statements with respect to HMI and the expansion of the holistic lithography portfolio, statements with respect to the implications and effects of the proposed remuneration policy for 2017 and statements about our proposed dividend and dividend policy,. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue", "targets", "commits to secure" and variations of these words or comparable words.These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers' products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development and volume production by customers, including meeting development requirements for volume production, that demand for EUV systems being sufficient to result in utilization of EUV facilities in which ASML has made significant investments, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases and timing of resumption of the share repurchase plan, and other risks indicated in the risk factors included in ASML's Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise..

Agenda van de Jaarlijkse Algemene Vergadering van Aandeelhouders van ASML Holding N.V. (de “Vennootschap”), te houden op woensdag 26 april 2017, om 14.00 uur in het Auditorium, ASML Gebouw 7, De Run 6665, Veldhoven1. OpeningOverzicht van de activiteiten, inclusief de activiteiten op het gebied van maatschappelijk verantwoord ondernemen, en de financiële situatie van de Vennootschap (Discussiepunt) April 26, 2017 Public 3

2016 in review: the highlights Record net sales of €6.79 billion, including record net service and options sales of €2.22 billion, gross margin 44.8%, net income €1.47 billion and EPS €3.46EUV lithography: demonstrated our productivity and availability targets, exited the year with a backlog of 18 systems with a value of around € 2 billionEUV lithography: announced proposed minority stake in Carl Zeiss SMT and funding for next generation EUV technologyDUV lithography: successfully ramped our latest immersion system, shipped 46 TWINSCAN NXT:1980sHolistic lithography: growing existing product portfolio and adoption, completed HMI acquisitionCapital return: returned € 846 million cash to shareholders through dividends and share buybacks 26 April 2017 Public 4

Commitments to EUV production insertion Initial customer manufacturing targeted for 7 nm logic and mid-10 nm DRAM node Customersshow commitment to insert EUV in volume manufacturing by ordering systems ASML commits to securing system performance, shipments and support required for volume manufacturing Exited 2016 with backlog of 18 EUV systems, value around € 2 billion 3 additional orders for NXE:3400B systems received in Q1 2017Further orders expected in 2017 For volume manufacturing of logic and memory, ASML remains committed to deliver:Throughput of >125 wafers per hourAvailability of >90% on averageShipments on time in sufficient volumeAbility to support a larger installed base 26 April 2017 Public 5

Strengthened partnership with Zeiss Start of development of the next generation of EUV (High NA) ASML to buy 24.9% of Carl Zeiss SMT for EUR 1 billion ASML to support Carl Zeiss SMT’s R&D and capex for about EUR 760 million over 6 years Main objective is to facilitate the development of the future generation of EUV Subject to regulatory approval 26 April 2017 Public 6

26 April 2017 7 Public HMI expands the Holistic Lithography portfolio

2016 Financials 26 April 2017 Public 8

Total net sales million € by End-use 26 April 2017 Public 9 Foundry IDM Memory YTD Installed Base Management (Service and Field options) As per January 1, 2017, ASML presents net sales with respect to metrology and inspection systems as part of Net system sales instead of Net service and field option sales.The comparative numbers have been adjusted to reflect this change in accounting policy.

2012 2013 2014 2015 2016 Net sales 4,732 5,245 5,856 6,287 6,795 Gross profit 2,005 2,177 2,596 2,896 3,044 Gross margin % 42.4 % 41.5 % 44.3 % 46.1 % 44.8 % Other income* — 64 81 83 94 R&D costs (589 ) (882 ) (1,074 ) (1,068 ) (1,106 ) SG&A costs (259 ) (312 ) (321 ) (346 ) (375 ) Income from operations 1,157 1,048 1,282 1,565 1,658 Operating income % 24.4 % 20 % 21.9 % 24.9 % 24.4 % Net income 1,146 1,016 1,197 1,387 1,472 Net income as a % of net sales 24.2 % 19.4 % 20.4 % 22.1 % 21.7 % Earnings per share (basic) € 2.70 2.36 2.74 3.22 3.46 Earnings per share (diluted) € 2.68 2.34 2.72 3.21 3.44 Litho units sold 170 157 136 169 157 ASP new litho systems 24.8 27.4 35.6 28.5 32.4 Net booking value 3,312 4,644 4,902 4,639 5,396 * Customer Co-Investment Program (CCIP) These numbers have been prepared in conformity with accounting policies generally accepted in the United States of America ("US GAAP") Consolidated statements of operations M€ 26 April 2017 Public 10

2012 2013 2014 2015 2016 Net income 1,146 1,016 1,197 1,387 1,472 Net cash provided by (used in) operating activities 704 1,054 1,025 2,026 1,666 Net cash provided by (used in) investing activities (1,120 ) (368 ) (16 ) (1,160 ) (3,188 ) Net cash provided by (used in) financing activities (546 ) (113 ) (928 ) (834 ) 1,964 Net increase (decrease) in cash & cash equivalents (964 ) 563 89 39 448 Free cash flow* 524 839 664 1,653 1,341 Cash and cash equivalents and short-term investments 2,698 3,011 2,754 3,409 4,057 * Free cash flow is defined as net cash provided by (used in) operating activities minus investments in Capex (Purchase of Property, plant and equipment and intangibles), see US GAAP Consolidated Financial Statements These numbers have been prepared in conformity with US GAAP Consolidated statements of Cash flows M€ 26 April 2017 Public 11

Assets 2012 2013 2014 2015 2016 Cash & cash equivalents and short-term investments 2,698 3,011 2,754 3,409 4,057 Net accounts receivable and finance receivables 909 1,175 1,304 1,208 1,264 Inventories, net 1,857 2,393 2,550 2,574 2,781 Other assets 558 635 835 940 1,173 Tax assets 200 296 232 181 47 Goodwill 149 2,089 2,358 2,624 4,874 Other intangible assets 10 697 724 738 1,323 Property, plant and equipment 1,030 1,218 1,447 1,621 1,687 Total assets 7,411 11,514 12,204 13,295 17,206 Liabilities and shareholders' equity Current liabilities 2,087 2,869 2,889 3,107 3,281 Non-current liabilities 1,257 1,723 1,802 1,799 4,105 Shareholders' equity 4,067 6,922 7,513 8,389 9,820 Total liabilities and shareholders' equity 7,411 11,514 12,204 13,295 17,206 As of January 1, 2016 ASML early adopted the amendment to ASC 740 “Income taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, which requires that deferred tax liabilities and assets are classified as non-current in the consolidated balance sheets. The comparative figures have not been adjusted to reflect this change in accounting policy. These numbers have been prepared in conformity with US GAAP Consolidated Balance sheets M€ 26 April 2017 Public 12

Capital return to shareholders 26 April 2017 Public 13 Dividend Share buyback The dividend for a year is paid in the subsequent year 2008 YTD proposal Capital return is cumulative share buyback + dividend (paid and proposed to AGM on April 26) Proposed dividend Proposal submitted to 2017 Annual General Meeting of Shareholders, which takes place on April 26, to declare a dividend of € 1.20 per ordinary share Share buyback program is currently paused

As per January 1, 2017, ASML presents net sales with respect to metrology and inspection systems as part of Net system sales instead of Net service and field option sales.The comparative numbers have been adjusted to reflect this change in accounting policy. Q1 results summary Net sales of € 1,944 million, net systems sales valued at € 1,216 million, net service and field option sales at € 728 millionGross margin of 47.6%, including the effects of purchase price allocation adjustment for the HMI acquisitionOperating margin of 27.5% Net bookings of € 1,894 million, including 3 new EUV systemsBacklog at € 4,509 million, including 21 EUV systems 26 April 2017 Public 14

26 April 2017 15 Public Outlook Our guidance for the second-quarter:Q2 2017 net sales between € 1.9 and 2.0 billion EUV revenue approximately € 200 million Three NXE:3400B shipments Gross margin between 43 and 44% R&D costs of about € 315 million SG&A costs of about € 100 million Other income (Customer Co-Investment Program) of about € 24 million Effective annualized tax rate between 13 and 14%

Agenda Bespreking van de implementatie van het beloningsbeleid van de Vennootschap (Discussiepunt) April 26, 2017 Public 17

26 April 2017 18 Execution of the Remuneration Policy in 2016 The Remuneration Policy for the Board of Management was adopted by the Annual General Meeting of Shareholders of April 24, 2013 and became effective per January 1, 2014. Some adjustments to the Remuneration Policy were adopted by the General Meeting of Shareholders on April 23, 2014 and on April 22, 2015.Some highlights of the execution of the Remuneration Policy in 2016 are:Base salaries of the presidents have been increased with 2.5%. The other BoM members base salaries have been aligned and are now all the same.Short Term Incentive (STI) payout over 2016 has been 88.9% of max (133.35% of target (60%), i.e. 80.01% of base salary)Long Term Incentive (LTI) payout over performance period 2014-2015-2016 has been 78.1% of maxASML ranked 3rd in the ROAIC rank in the Peer Group (leading to a payout of 75% of max)The qualitative target was evaluated at 90.6% of max Public

Agenda 3. Bespreking van de implementatie van het beloningsbeleid van de Vennootschap (Discussiepunt) April 26, 2017 Public 19

Agenda 4. Voorstel tot vaststelling van de overeenkomstig de Nederlandse wet opgestelde jaarrekening over het boekjaar 2016 (Stempunt) April 26, 2017 Public 20

Agenda Proefstemming“Ik zou graag na de aandeelhoudersvergadering het ASML Experience Center bezoeken.” April 26, 2017 Public 21

Agenda 4. Voorstel tot vaststelling van de overeenkomstig de Nederlandse wet opgestelde jaarrekening over het boekjaar 2016 (Stempunt) April 26, 2017 Public 22

Agenda 5. Voorstel tot verlening van decharge aan de leden van de Directie voor de uitoefening van hun functie in het boekjaar 2016 (Stempunt) April 26, 2017 Public 23

Agenda 6. Voorstel tot verlening van decharge aan de leden van de Raad van Commissarissen voor de uitoefening van hun functie in het boekjaar 2016 (Stempunt) April 26, 2017 Public 24

Agenda 7. Toelichting op het reserverings- en dividendbeleid van de Vennootschap (Discussiepunt) April 26, 2017 Public 25

Agenda 8. Voorstel tot vaststelling van een dividend van EUR 1,20 per gewoon aandeel (Stempunt) April 26, 2017 Public 26

Agenda 9. Voorstel tot vaststelling van het gewijzigde Beloningsbeleid voor de Directie (Stempunt) April 26, 2017 Public 27

April 26, 2017 ASML Remuneration Policy 2017Proposal to the AGM Public

26 April 2017 29 Rationale for changing the remuneration policy Current remuneration policy, with minor changes, served ASML well since 2004Strict application provided focus and direction throughout the yearsIt was fully compliant with governance standardsASML has further grown and maturedReference group composition required revisionNew policy continues to focus on:Serving our customersDriving technologySatisfying our stakeholdersCreating long term shareholder valueROAIC versus peer group becoming more cumbersome Public

26 April 2017 30 Remuneration principles TransparentPolicy and its execution are clear and practicalLong termIncentives focus on long-term value creationAlignmentRemuneration policy is aligned with the policy for ASML senior management and other ASML employeesCompliantASML adopts the highest standards of good corporate governanceSimple Policy and its execution are as simple as possible and easily understandable to all stakeholders Public

The reference companies are ranked based on enterprise value; revenue and number of employees (excl. ASML) 26 April 2017 31 New Reference group (21 companies) # Name Industry/Sector Country 1 Gemalto NV Software Netherlands 2 UCB SA Pharmaceuticals Belgium 3 Givaudan SA Chemicals Switzerland 4 Koninklijke DSM NV Chemicals Netherlands 5 Covestro AG Chemicals Germany 6 Smith & Nephew PLC Health Care Equipment & Supplies United Kingdom 7 Yara International ASA Chemicals Norway 8 Legrand SA Electrical Equipment France 9 Shire PLC Biotechnology United Kingdom 10 Infineon Technologies AG Semiconductors & Semiconductor Equipment Germany 11 Solvay SA Chemicals Belgium ASML Semiconductors & Semiconductor Equipment Netherlands 12 Leonardo-Finmeccanica SpA Aerospace & Defense Italy 13 Evonik Industries AG Chemicals Germany 14 Schindler Holding AG Machinery Switzerland 15 Alstom SA Machinery France 16 Essilor International SA Health Care Equipment & Supplies France 17 Nokia OYJ Communications Equipment Finland 18 Akzo Nobel NV Chemicals Netherlands 19 Philips Healthcare and Consumer Lifestyle Industrial Conglomerates Netherlands 20 Linde AG Chemicals Germany 21 Continental AG Auto Components Germany The reference companies are ranked based on enterprise value; revenue and number of employees (excl. ASML) The reference group is designed to have ASML on a fair position in the group at the median level (total direct compensation at target)The Companies in the new reference group all have public data to enable the comparison analysis on remuneration Public

26 April 2017 32 Amendments in variable compensation Main changes in short term incentiveTarget from currently 60% to 65% of base salary for all BoM membersAll targets measured annuallySupervisory Board to choose from list of financial targets each year to represent business challenges. For 2017 the following targets have been selected:EUV shipmentsEBIT marginFree cash flowMain changes in long term incentiveTarget LTI Presidents from 70% to 100% of base salary. Target LTI for rest of BoM members from 70% to 85% of base salaryROAIC reduced from 70% to 40% of total and based on absolute threshold/target and maximum levels based on most recent Long Term Financial Plan versus current peer group companies comparisonIntroduction of TSR at 30% of total versus PHLX Semiconductor indexOther changesShare ownership requirements increase to 3 times of total base salary for Presidents Public

26 April 2017 33 Pay out table TSR versus PHLX index Performance ASML vs PHLX Index (TSR ASML -/- TSR X. SOX) Pay-out as a % of target ≥ 20% 200% Between 0% and 20% Linear between 100% and 200% Between -20% and 0% Linear between 50% and 100% < -20% 0% Public

26 April 2017 34 ASML moves to median of reference group - illustrative Presidents at target The new policy was developed during 2016, based on available 2015 market dataThe actual 2017 compensation levels are based on 2015 market data Public

Agenda 9. Voorstel tot vaststelling van het gewijzigde Beloningsbeleid voor de Directie (Stempunt) April 26, 2017 Public 35

Agenda 10. Voorstel tot goedkeuring van het aantal aandelen toe te kennen aan de Directie (Stempunt) April 26, 2017 Public 36

Agenda 11. Voorstel tot goedkeuring van het aantal opties en/of aandelen toe te kennen aan werknemers (Stempunt) April 26, 2017 Public 37

Agenda 12. Samenstelling van de Directie (Discussiepunt) April 26, 2017 Public 38

Agenda 13. Samenstelling van de Raad van Commissarissen (4 stempunten; 1 discussiepunt) April 26, 2017 Public 39

Agenda 13a. Voorstel tot herbenoeming van mevrouw P.F.M. (Pauline) van der Meer Mohr als lid van de Raad van Commissarissen (Stempunt) April 26, 2017 Public 40

Agenda 13b. Voorstel tot herbenoeming van mevrouw C.M.S. (Carla) Smits-Nusteling als lid van de Raad van Commissarissen (Stempunt) April 26, 2017 Public 41

Agenda 13c. Voorstel tot herbenoeming van de heer D.A. (Doug) Grose als lid van de Raad van Commissarissen (Stempunt) April 26, 2017 Public 42

Agenda 13d. Voorstel tot herbenoeming van de heer Mr. W.H. (Wolfgang) Ziebart als lid van de Raad van Commissarissen (Stempunt) April 26, 2017 Public 43

Agenda 13e. Samenstelling van de Raad van Commissarissen in 2018 (Discussiepunt) April 26, 2017 Public 44

Agenda 14. Voorstel tot aanpassing van de beloning van de Raad van Commissarissen (Stempunt) April 26, 2017 Public 45

26 April 2017 46 Remuneration proposal for the Supervisory Board Remuneration of the Supervisory Board is reviewed every 2 years to ensure proper alignment with the market.In 2016 a review has been conducted against the AEX, as before, but now at the 75th percentile to reflect the increased size and complexity of ASML.Proposed adjustments for the various functions: Function Current Proposed Chairman EUR 95,000 EUR 100,000 Vice Chairman EUR 65,000 EUR 70,000 SB member EUR 60,000 EUR 60,000 Committees Audit Committee Chairman EUR 15,000 EUR 20,000 Audit Committee member EUR 10,000 EUR 13,000 Other Committees Chairman EUR 12,000 EUR 15,000 Other Committees member EUR 8,000 EUR 10,000 Public

Agenda 14. Voorstel tot aanpassing van de beloning van de Raad van Commissarissen (Stempunt) April 26, 2017 Public 47

Agenda 15. Voorstel tot benoeming van KPMG als externe accountant voor het rapportagejaar 2018 (Stempunt) April 26, 2017 Public 48

Agenda 16. Voorstellen om de Directie aan te wijzen als het orgaan dat bevoegd is tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen, alsmede tot het beperken of uitsluiten van het aan de aandeelhouders toekomende voorkeursrecht (4 Stempunten) April 26, 2017 Public 49

Agenda 16a. Aanwijzing tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen (5%) (Stempunt) April 26, 2017 Public 50

Agenda 16b. Aanwijzing tot het beperken of uitsluiten van voorkeursrechten (Stempunt) April 26, 2017 Public 51

Agenda 16c. Aanwijzing tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen in verband met of ter gelegenheid van fusies, acquisities en/of (strategische) allianties (5%) (Stempunt) April 26, 2017 Public 52

Agenda 16d. Aanwijzing tot het beperken of uitsluiten van voorkeursrechten (Stempunt) April 26, 2017 Public 53

Agenda 17. Voorstellen om de Directie te machtigen om gewone aandelen te verwerven (2 Stempunten) April 26, 2017 Public 54

Agenda 17a. Machtiging om gewone aandelen in te kopen tot een maximum van 10% van het geplaatste kapitaal (Stempunt) April 26, 2017 Public 55

Agenda 17b. Machtiging om additioneel gewone aandelen in te kopen tot een maximum van 10% van het geplaatste kapitaal (Stempunt) April 26, 2017 Public 56

Agenda 18. Voorstel tot intrekking van gewone aandelen (Stempunt) April 26, 2017 Public 57

Agenda 19. Rondvraag20. Sluiting April 26, 2017 Public 58