ASML policy is to provide employees safe and healthy working conditions and we have multiple initiatives to ensure and increase the well-being of our employees and a proper work-life balance. To the extent of our abilities, ASML pursues similar objectives for our customers (through the safe design of our products) and for our suppliers (through our supply chain policy).

ASML tracks the results of our safety and health initiatives by monitoring three categories:

1. Incidents and near misses on ASML sites and their impact
2. Incidents on customer sites related to ASML product safety
3. Absenteeism of ASML employees

These will be discussed in more detail below:

1. Incident and near misses on ASML sites and their impact
Near misses, accidents and other incidents are reported by means of an incident report, which is investigated by the EHS department (see table 15).

Table 15 Health and Safety Data		2007	2008	2009
Number of injuries		69	60	51
Number of OSHA recordable incidents		28	27	22
Number of days away from work		208	33	60
OSHA incident rate		0.49	0.46	0.37

Table 15 Health and Safety Data

There were 51 injuries and a total of 22 recordable incidents at ASML sites in 2009. These were incidents within the company involving payroll and temporary employees during working hours. An OSHA (Occupational Safety and Health Administration) recordable incident is an event whereby the employee:

• Requires medical treatment beyond first aid, or
• Has a recordable injury or illness as defined by a physician or other healthcare provider, or
• Misses work (lost work days), or
• Loses consciousness, or
• Is fatally injured.

There were no fatalities and a total of 60 days away from work resulted from these 22 recordable incidents.

In 2009, ASML reported an incident rate of 0.37 (OSHA recordable incidents per 100 FTE) compared to 0.46 in 2008 and 0.49 in 2007.

ASML remains an industrial site, with some risks that need to be identified and tackled. Identification of such risks are done through (i) a systematic analysis of every incident and near misses on site (ii) regular audit (iii) a preventive and systematic review of risks associated with our products and production which include high-intensity laser systems, high-voltage apparatus, packing and transportation of machines and modules (large machines used for lifting heavy equipment), and use of hazardous substances (flammable/explosive, toxic and chemically aggressive gases and liquids).

Further reduction of the incident rate, with the ultimate goal of zero recordable incidents, is pursued through a number of initiatives that will be strengthened further in 2010:

• Technical surveillance and improvement of our production premises

In 2008, a Safety Review Board was installed to manage new risks caused by the introduction of hydrogen for the new NXE machine generation. The members of the Safety Review Board are from different groups including development, source, scanner, Facility Management, EHS and Customer Support. Hydrogen can only be introduced after the board has reviewed all design specifications and procedures of hydrogen installations, including the NXE machines.

In 2009, this Safety Review Board analyzed and reviewed all known potential safety risks in the NXE machines and their facilities that involve the handling and use of hydrogen, resulting in an ultimate approval of all processes.

• Training of people

Through EHS training, ASML ensures that employees know how to respond in the event of an emergency, such as a fire or earthquake. Designated Emergency Response Teams (ERTs) have been appointed worldwide and are trained to assist and lead other employees during dangerous situations. These teams are trained in first aid (including Automatic External Defibrillator (AED) training), building evacuations and firefighting.

In Veldhoven, the emergency response team has 158 participants. Members are trained and certified annually to act in the event of incidents, fire and evacuations; they can provide first aid, use an automatic external defibrillator and perform reanimation procedures. The emergency response plan for ASML Netherlands B.V., which was developed and successfully implemented in 2008, was updated in 2009 with more detailed information about ASML's structures due to the expansion of buildings and the use of hydrogen.

ASML offers two online Computer-Based Training (CBT) courses on EHS subjects that are available for employees via ASML's Online Academy: General EHS training and Specific EHS Training. These courses have been developed to execute basic EHS training efficiently, consistently and globally. The CBT General EHS training is intended for all ASML employees and covers EHS topics for employee awareness. In 2009, 1,048 ASML employees worldwide were given this first training, down from 1,471 in 2008. The second training covers EHS aspects for employees with technical jobs, including those in cleanrooms. In 2009, 906 ASML employees worldwide completed the second EHS training, down from 1,028 in 2008. This decrease can be explained by the lower number of new employees. Since the introduction of the CBTs, 7,164 employees have successfully completed the first training and 6,431 employees the second training.

At the main sites, formal health and safety committees supervise health and safety programs. Both management and employees are represented.

• Involvement of the line management

New ambitions will be introduced in 2010 with targets for line management. Incidents need to be reported within 24 hours by the site manager and a root cause analysis must be completed within two weeks. A safety review is required twice a year. Employees are encouraged to report near misses.

2. Incidents on customer sites related to ASML product safety
Product safety throughout its lifecycle is a priority for ASML and product safety precautions are part of product development. ASML is compliant with the law and ensures that safety measures are incorporated into equipment from the earliest design stage. Where equipment hazards cannot be designed out, steps are taken to integrate safeguards into the system. This is done to ensure that no single failure or operator error can lead to hazardous exposure of the operator, facility personnel or the environment.

ASML's product safety standards include applicable regional regulations and the SEMI S2 Safety Guidelines for semiconductor manufacturing equipment. These standards address chemical, radiation, electrical, physical, mechanical and environmental hazards, as well as fires and explosions, earthquake protection, ventilation, exhaust and ergonomics.

A limited number of product-related incidents occur every year at our client's sites (see table 16). Of the three incidents at our client's sites in 2009, one resulted in a head injury and two in a broken finger. In two incidents, the root cause was the way of working, and in one it was the design.

Table 16 Incidents by customer location		2007	2008	2009
Clients Europe		0	1	1
Clients USA		0	1	0
Clients Asia		2	1	2
Total		2	3	3

Table 16 Incidents by customer location

Every incident and reported near misses are analyzed, and feedback is provided to prevent the root cause of the incident or near miss from happening again. The aim of ASML is to decrease the number of product-related incidents at client sites towards zero.

3. Absenteeism of ASML employees
Due to different treatments of absenteeism among the countries in which ASML operates, no comparable company-wide figure is available. An overview of absenteeism per region can be seen in table 17.

Table 17 Absenteeism ASML employees per region		2007	2008	2009
Asia		0.3%	0.7%	0.5%
Europe1		2.9%	3.0%	2.9%
USA		2.7%	2.7%	2.7

Table 17 Absenteeism ASML employees per region 

¹ This number represents 94 percent of the total employees working in Europe

Employees reporting ill in the Netherlands are contacted by phone by a medically qualified absence coordinator from the Dutch Occupational Health and Safety Service, who evaluates the employee's symptoms and estimates his or her recovery time. The coordinator keeps the employee's direct supervisor informed about the status of the absent employee. Coordinators are able to determine whether an employee should be referred to the company doctor. This process helps assess illness-related absences and provides insight into employees' symptoms and complaints. In the USA and Asia, a sick pay benefits policy is in place and benefits are contingent upon the employee maintaining regular contact with his or her supervisor.

In order to improve these results further, ASML has developed a number of actions to prevent illness:

1. Primary prevention: prevent people from falling sick
2. Secondary prevention: when an employee becomes sick, act swiftly to ensure a fast recovery and help protect colleagues
3. Tertiary prevention: analyze incidents and implement measures to prevent repeat or proliferation