Slide 1 | Public

Buyers BreakfastOctober 15th, 2009

Henk ScheepersASML SVP Supply Chain Management

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318 453685 629

949 919

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763 942

930 844

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958

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2003 2004 2005 2006 2007 2008 2009

Ne

t sa

les Q4

Q3

Q2

Q1

Sales decline due to global crisis

1,543

2,465 2,529

3,5823,768

Numbers have been rounded for readers’ convenience.

2,954

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Profitability under pressureConsolidated statement of operations M€

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Net Sales 844 696 494 184 277

Gross profit Gross margin %

337 40.0%

265 38.1%

39 7.9%

12 6.7%

34 12.5%

R&D 130 130 127 118 118

SG&A 56 52 47 41 41

Income (loss) from operations Income from operations %

151 17.9%

83 12.0%

(135) -27.4%

(147) -80.0%

(125) -45.0%

Net income (loss) Net income %

192 22.7%

73 10.5%

(88) -17.8%

(117) -63.8%

(104) -37.6%

Units shipped 39 37 25 11 10

ASP New Systems 21.7 21.6 20.4 13.8 31.1

Net Bookings Units 33 31 13 8 15

Numbers have been rounded for readers’ convenience.

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Factors of Success: Research & Development

ASML’s R&D budget = total revenues of one of its competitorsSecond largest, non-government R&D investor in the Netherlands

Source: ASML

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R&D investment M€

Total sales B€

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ion €B

illion €

’08

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Bottom-up scenario: Four engines of growthEven when assuming slow chip unit growth of 4%

More DRAM in expanding consumer electronics. Additional €1.2B Litho revenue over 6 years.

Emerging new Storage Class Memory makes computer servers perform 25% better, leading to 30% penetration by 2015, adding €1.8B Litho revenue in 2012-2015 period.

Middle class population growth expected, driven by Brazil, Russia, India and China (BRIC). Electronics spending in BRIC to more than double to $46/year, adding €6.4B in Litho revenueover 6 years.

NAND/ReRAMpenetration rises to 10% of hard disk drives storage capacity, versus 7% in slow-down scenario, adding €6.8B in Litho revenue over 6 years.

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Source: ASML ; data corrected for overlap

Factual until 2008 + forecast for 2009

IC trend-based simulation

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Our Supply Chain is organized to meet customer demand

Slide 7 | PublicSlide 7 |

ASML Immersion Product Roadmap

Available

XT:1900GiResolution 40 nm

Tool CDU < 1.5 nm

SMO 6→5 nm

Throughput

131→140 WPH

XT:1950HiResolution 38 nm

Tool CDU < 1.1 nm

SMO 4 nm

Throughput

148 WPH

Available

NXT:1950iResolution 38 nm

Tool CDU < 1.1 nm

SMO 3 nm

Throughput

175 WPH

Q2-2009 Q2-2010

NXT:1950i+PEP

Resolution 38 nm

Tool CDU < 1.1 nm

SMO 3/5 nm

Throughput

200 / 220 WPH

Q2-2011

NXT:1950i+EXT

Resolution 38nm

Tool CDU < 0.8 nm

SMO 2 / 5 nm

Throughput

220 / 240 WPH

Preliminary Platform

extension specifications

to be field upgradeable

Extendibility

Performance enhancements

� Improved overlay using segmented wafer table

� Improved optics – “1950 lens”

� Improved productivity & defectivity using air drag immersion hood

� Faster stages

Platform enhancements

� New hi-acceleration stages

� Improved overlay using new stage position control

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Financial impact of shrink for our Customers

60nm

55nm

45nm

Design Rule

Die Area Die / Wafer300mm

Revenue / Wafer

$5 ASP / die

145mm2145mm2

120mm2120mm2

70mm270mm2

430430

520520

940940

$2,600

$2,150

$4,700

Source: ASML

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Customer’s needs:

Decrease Cost Cost Cost Cost Cost Cost Cost

Continue Shrink Shrink Shrink Shrink Shrink

Increase Output Output Output Output Output

ASML:

Customer FocusTechnology LeadershipOperational Excellence

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What we need How we should do it

Lower cost of goods

Lower cost of design

Lower cost of ramp

Lower cost of service

� Higher uptime

� Less (sub) system failures

Faster ramp up

Lower obsolescence value due to volume fluctuation and product changes

Use standard off-the-shelf components (COTS) and subsystems.

Use proven technology

Use design capacity of OEM suppliers

Involve suppliers in design

Re-use of existing modules and sub modules. Seek communality and backwards compatibility

Increased focus on industrial engineering

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Road to global leadership continues

1984Total market: > € 4 billion

GCAUltratech

Eaton

Nikon

ASET

HitachiPerkin ElmerCanon

ASMLNikon

Canon

2008Total market: > € 463 million

ASML

Technology leadership brings increased market share

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ASML Supply Chain strategy: Value Sourcing

Customer Focus and Growth in Market Share � Outstanding customer satisfaction� Most reliable product performance

Technology Leadership� Most advanced R&D roadmap� Highest product Value of Ownership

Operational Excellence� Financially strong throughout the market cycles� Agility and short cycle times

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Value SourcingAdding Value to the Customer, the Supply Base & ASML

ASML Customer acceptance by the Supply Chain

Long Term supplier relationships

QLTC Performance in all phases of the life cycle: � managed integral and cross functional� measured� Continuously improved

Securing World Wide competitiveness

Continuously adapting to changing customer

requirements

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ASML Customer acceptance by the Supply Chain

Quality-Logistics-Technology-total Cost

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Comparison YoY Growth Values between IC units, IC Revenues and Litho Revenues

WSTS YoY IC unit growth WSTS YoY IC Revenue growth Gartner YoY Litho Revenue Growth

ASML Market: Highly dynamical

Sources: IC Units: 1988-2007: WSTS; 2008: avg. VLSI, Gartner, IC Insights; Litho: Gartner

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B o o king s L itho W W3 M M A [M $ /M onth]

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Supplier Performance on QLTCFollowing the Semiconductor Market Cycles

12 months

Output x2 Output x½

4 months 6 months 12 months2 months

Output Capacity to Double in 4 monthsOutput Capacity to Double in 4 months

PROTO PILOT VOLUMESC

requirementsSc

Feasibility

PGPphase 0

PGPphase 1

Operationalphase

PGPphase 5

PGPphase 4

PGPphase 3

PGPphase 2

Prod.Life Ext.

R4V

Advance Warning of Upturn ~ 2 Months

Slide 17 | Public…we need a strong fleet to accompany us!

Market Pressure forces quick release into the water and steep speed pick-up...

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The Benefits of Outsourcing

ASML focuses on high value-added integration role� Total product competence� Shorten cycle times

Subsystem suppliers have specialized competencies� More efficient and dedicated operations� Focus on reducing cost, increasing capability and quality

Subsystem suppliers serve also other customers� Share and spread the risks of the market cycles� Increased flexibility and competitive cost structure

Creating access to the best competencies available� Time to Market� Most advanced technology

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Multi and Single Sourcing go Together

Multi Sourcing of Competencies� Create competition and independency� Q L T are pre-conditions, Cost is the differentiating factor

Single Sourcing of Products and Services� Optimizing investments and engineering resources� Best fit to the suppliers’ competencies

� Based upon the QLTC principles

� Speeding up the learning curve� Time to Market

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ASML offers to develop Virtual Integration for those Suppliers who prove to be QLTC competitive, world wide:

ASML is potentially willing to outsource more development and industrial integration activities

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Supply Chain is Key

The Supply BaseWorld Class - Globally Competitive - Globally Present

Value SourcingValue Sourcing

QualityQualityDesign Qualification (Product)Process Qualification (Supply Chain Manufacturing)Zero Defects

LogisticsLogisticsDelivery reliability and availabilityShort lead timesCapacity and Flexibility

TechnologyTechnologyTechnology roadmap fulfillment – “Time to Market”Development of and Access to key competenciesEfficient engineering change management

total Costtotal CostCompetitive pricing with open costingMeeting Value of Ownership requirementsSharing risks and benefits of market dynamics

Slide 22 | Public

QLTC Performance in all phases of the life cycle

Key Performance Indicators� Quality� Logistics� Technology� total Cost

Continuously measured and managed through Improvement Initiatives

Contractually arranged in theLong Term Agreement

Managed by Cross Functional Teams

Documented in the Supplier Profile

- Confidential -

Supplier ProfileSupplier name + number

XYZ

1 2 3 4 5 Status

Material Quality Performance (MQP) - Q1

Introduction of new products - Q2

Process control of the production process - Q3 G

Supplier selection criteria throughout the supply chain - Q4 R

Version control and archiving - Q5

Complaint Handling - Q6 Y

FSD's exclusive DOA’s / DOI’s - Q7

DOA and DOI Parts at End-ustomers. - Q8

Environmental Performance - Q9

Health & Safety Performance - Q10

Corporate Social Responsibility (CSR) - Q11

Quality performance of 2nd tier - Q12

Customer focus and craftsmanship - Q13

- Q14

Order fulfilment flexibility & Delivery reliability - L1

Material Availability & Stock Out Ratio - L2 G

Just In Time replenishment - L3

Order Time - L4

Disturbance Information Flow Response Time (RT) - L5 G

Repair Cycle Time improvement - L6

Order management - L7 B

Flexibility Requirement - L8

Proto Flexibility - L9

Cycle Time Reduction - L10

Process Control: ERP-system - L11

Logistic performance of 2nd tier - L12

Customer focus and craftsmanship - L13 G

- L14

Module / Sub-system / Production Tooling Development - T1

The research and development process - T2

The structure of the technology development organization - T3

Technology Knowledge - T4

Investments on Technology Competence Development - T5

Engineering / Early Supplier Involvement - T6

Process Engineering - T7

Continuous Engineering Improvement - T8 G

Engineering Change (EC) Management - T9

Technical Support - T10

Technology roadmap alignment - T11

Contamination Control - T12 Y

Technology performance of 2nd tier - T13

Customer focus and craftsmanship - T14

- T15

Market Conformity (PP3) - C1

Open costing - C2

Cost Reduction Programs - C3

Dependency: ASML & Semicon Market - C4

Payment Terms - C5 B

Warranty according to ASML Customer expectation - C6

Delivery Conditions - C7

total Cost performance of 2nd tier - C8

Customer focus and craftsmanship - C9

- C10

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Securing World Wide competitiveness: our customers are world wide: about 70% of our sales is in Asia

Our Asian customers expect us to be local present

Sales: 69%Procured value: ca 4%

Sales: 9%Procured value: ca 82%

Sales: 22%Procured value: ca 14%

ASML 2008

Slide 24 | Public

Local QLTC Supply Base enables ASML todevelop, integrate and test

ASML focus on development, integration and testing of systems, in NL, US and Taiwan.

Therefore we need a local competent infrastructure.

The Netherlands has a unique and very competent infrastructure

Slide 25 | Public

Unique Technology & Manufacturing infrastructure around Veldhoven

Product related

And many more!

Non Product related

Knowledge

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ASML Taiwan: locally present; 150 employees

•Production

•CS

•Industrial engineering

•Logistics

•Procurement

•Development

Transfer the PAS Production to ACE•Free up capacity in Veldhoven to work on our new technologies•Improve our position in Asia and worldwide now and for the future•Have the flexibility to follow the fast changing PAS business

Refurbishment & Spare Parts

Slide 27 | Public

Developing an Asian Supply Base

Asian Suppliers are QLTC:•Able to deliver complex parts•From less-complex parts to complex parts•From Built-to-Print to Virtual integration•From dual sourcing to single sourcing

Integration of 2nd Tier supply chain of our current suppliers•Our current suppliers have or start their own subsidiaries•Currently 20 ASML Asia Procurement people are ready to further expand ASML supply base as well to support our 1st tier suppliers to integrate the Asian Supply Base in their supply chain

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