ASML Holding N.V.

After ASML's introduction, there will be an opportunity to ask questions. I would now like to open the question and answer queue. If you would like to ask a question, please press star 1 to register. If you would like to withdraw a question, please press star 2 at any time during the call. The questions will be answered in the order that they are received. If any participant has difficulty hearing the conference, please press star 0 for operator assistance. I would now like to turn the conference call over to Mr. Skip Miller. Please go ahead, sir.

Thank you, operator. Welcome, everyone. This is Skip Miller, Vice President of Investor Relations at ASML. Joining me today on the call is ASML CEO Peter Winnick and our CFO, Roger Dassen. The subject of today's call is ASML's 2020 first quarter results. The length of this call will be 60 minutes. and questions will be taken in the order that they are received. This call is also being broadcast live over the internet at asml.com. A transcript of management's opening remarks and a replay of the call will be available on our website shortly following the conclusion of this call. Before we begin, I'd like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of the federal securities laws. These four looking statements involve material risks and uncertainties. For a discussion of risk factors, I encourage you to review the safe harbor statement contained in today's press release and presentation found on our website at asml.com and in ASML's report on Form 20F and other documents as filed with the Security Exchange Commission. With that, I'd like to turn the call over to Peter Winnick for a brief introduction.

Thank you, Skip. Welcome, everyone. And thank you for joining us for our Q1 2020 results conference call. I hope all of you and your families are healthy and safe. And before we start our normal quarterly results review, I would like to first talk about the topic on everybody's mind, which is the COVID-19 pandemic and the situation. Well, these are unprecedented and challenging times, and the COVID-19 pandemic affects all of us. Our primary goal at ASML continues to be to ensure as best as we can that our colleagues and their families stay safe. Our second goal is to ensure that we continue to serve our customers and to secure the delivery of our product roadmap, including the continuity of our supply. We have been taking and continue to take precautionary measures to limit the risks. Most of our non-manufacturing employees now work from home and travel is restricted. In China, our colleagues are returning to the office, but also there we remain vigilant. In our own facilities, we have implemented restricted access to our manufacturing facilities worldwide, in particular our clean rooms, to ensure our colleagues can work safely. We put in place measures to help ensure isolation between shifts. We've also implemented additional safety and cleaning protocols to minimize contamination risks. We work closely with our customer suppliers and partners to share information and determine best practices. We see a lot of creativity, resilience, and dedication at ASML and the industry overall as we work to manage through this crisis. To date, we have experienced limited impact on ASML's manufacturing capability, although there have been additional challenges with absenteeism, transportation, and support logistics that we have had to manage. Some of the quarantine requirements have had an impact on our efficiency, while travel restrictions have posed a challenge for installs and major upgrades. We are working with our customers to plan ahead and find creative solutions such as the use of remote monitoring, augmented reality solutions, and diagnostic technologies to aid in the service and repair of systems. With regard to our supply chain, some of our suppliers have experienced temporary closures resulting from governmental lockdown and shelter-in-place orders. At this stage, we've either been able to work around these temporary disruptions or the closure has been resolved. We're managing risk via alternative sourcing and again, a lot of creativity. We're closely monitoring the status and we'll use safety stock as much as possible to ensure minimum interruption. At this point in time, we've been able to find solutions for these challenges. Regarding customer demand, we've currently not seen a reduction in demand this year, and we have seen a strong order intake. I will talk more on this later. On cash management, although we have a very healthy balance sheet, as well as flexibility in our cost structure, we feel it is prudent to preserve cash should the situation continue for an extended period of time. Not just for our own operation, but also in order to be able to support our suppliers as best we can in these extraordinary circumstances, and Roger will talk more on the detailed actions. You will all understand that in this environment it's difficult to determine how things will develop, how long it will last, and the impact this will have on the global GDP development that can affect our entire industry. We're taking the necessary steps in terms of safety, risk mitigation, and financial measures to best manage through these challenging times. It's very encouraging to see the creativity, resilience, and dedication at ASML and the industry overall. Now I would like to turn our normal quarterly results process. Before we begin the Q&A session, Roger and I would like to provide an overview and some commentary on the first quarter. Roger will start with a review of our Q1 financial performance, then comments on our short-term outlook. And I will complete the introduction with some additional comments on the current business environment and on our future business outlook. Thank you, Roger.