ASML Holding N.V. (NASDAQ:ASML) Q4 2022 Earnings Call Transcript

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Sandeep Deshpande: And just one quick follow-up on China, Peter. I mean I know you don’t really want to talk about it, given everything is still up in the air. But when we look at what your competitors have done in other markets, there could be a future impact to ASML from whatever is negotiated in China. How should we look at it into 2023 year such really? I mean clearly, without quantifying it, will there be an impact? Or do you think that you have enough in your backlog that you could recognize through the year, which would mean that there should be no impact to ASML at all?

Peter Wennink: It’s a good question, Sandeep, but it really depends on what the outcome of the export control negotiations are because we can speculate all kinds of scenarios, what that would be and what the impact would be. The only thing is that we have a safe buffer, you could say, between the demand and our output capability. So it fully depends on what the outcome is. And it’s not that I want to talk about that. I don’t want to talk about China. I want to talk about China, it’s no problem. What I cannot do is just tell you what the impact of the potential outcome is because I don’t know the outcome. That’s the only thing that — so I just don’t want to speculate. That’s the only thing. But I think I find comfort in the significant buffer, you could say, between the demand curve and our output capability.

Skip Miller: All right. We have time for one last question. If you were unable to get through on this call and still have questions, please feel free to contact the ASML Investor Relations department with your question. Now operator, may we have the last caller, please?

Operator: That comes from the line of Aleksander Peterc at Societe Generale.

Aleksander Peterc: So just a final question would really be on your indication on EUV ASPs in 2023. Now you obviously highlighted it’s slightly down versus ’22. Is that a conservative assessment? And if you could maybe think about the elements that pushed the EUV ASP to such high levels in ’22, those will not be achievable this year. And then I have a very quick follow-up with the E system, obviously. Should we also assume that if we look at the increased current for that machine, that you will basically keep half of the increase for yourself and the other half will be given to your customers as per the usual?

Roger Dassen: Yes. Thanks, Aleksander. So as I mentioned, gradually, over these calls, we’ve increased the ASP of the D model that we’ve given to you. So it started with €160 million and we said use €165 million, and I just said, use somewhere between €165 million and €170 million. You’re right that if you just calculate the ASP in the quarters in 2022, sometimes you’ve got to some higher numbers. But the reason that, that was the case, as we’ve also explained on previous calls, those were one-offs as a result of revenue deferrals that were in there. So sometimes, that led to a remeasurement of those deferrals. And that then sometimes, because we’re also looking at distributing those adjustments over a very limited number of tools, that could actually have quite a significant impact.

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