ASML supports the general principles of the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy of the ILO, as well as the general principles laid down by the OECD in its Guidelines for Multinational Enterprises. ASML has a zero-tolerance policy on any form of discrimination by any of our employees. We provide equal opportunities in recruiting, hiring, education, promotion and compensation without discrimination for race, color, gender, age, religion, political opinion, nationality or social origin. We profile employee characteristics to meet established governmental policies for promoting equality of employment opportunities or when it relates to the inherent requirements of a job. We respect the different cultural identities of our employees.

Headcount
As of 31 December, 2009, ASML's workforce totaled 6,548 full-time equivalent (FTE) worldwide, a decrease of 5.5 percent compared to 2008. Table 9 shows ASML's workforce by region and gender.

Table 9 Workforce by region and gender	Asia	Europe	USA	Total
Number of payroll employees in FTEs	1,291	3,800	1,457	6,548
Female %	13	10	12	11
Male %	87	90	88	89

Women make up 11 percent of ASML's total workforce, which remains unchanged over the 2008 level. The so-called gender gap typically found in technology companies worldwide is also present at ASML.

Graph 19 shows the breakdown of the FTEs by age.

The breakdown of ASML employees is shown in table 10 by FTE distribution over the company's main sectors.

Table 10 Main sectors	Total FTEs 2008	Total FTEs Asia	Total FTEs Europe	Total FTEs USA	Total FTEs 2009
Product	577	122	224	128	474
Field Customer Support	2,317	914	420	531	1,865
Development & Engineering	1,567	18	1,299	276	1,592
Planning & Manufacturing	1,291	46	995	353	1,393
Supply Chain Management	420	53	234	64	351
Corporate Support	759	128	397	78	604
Industrial Engineering		10	232	27	269
Total	6,931	1,291	3,800	1,457	6,548

In addition to the 6,548 payroll employees (in FTEs), there are 1,137 temporary employees (in FTEs), which is 14 percent less compared to 2008. The largest group of employees is in Field Customer Support, which provides services 24 hours a day to customers worldwide. Activities include installation of tools, maintenance and repair based on service contracts and application support.

Employee turnover
The economic downturn meant ASML was forced to cope with significantly lower demand for ASML systems in the third and fourth quarters of 2008 and throughout 2009. The influx of new employees was limited during this period, particularly when compared to previous years. In total, ASML recruited 112 new employees in 2009, compared to 794 in 2008.

ASML's employee turnover in 2009 was 8.5 percent, compared to 6.4 percent in 2008. This increase is mainly due to layoffs in Tempe, resulting from the closure of a facility there. The percentage of voluntary turnover dropped to 3.3 percent (compared to 4.5 percent during 2008). The employee turnover per region is shown in table 11.

Table 11 Employee turnover	Asia	Europe	USA	Total
Non Voluntary	43	85	215	343
Voluntary	89	105	26	220
Total	132	190	241	563

Despite the economic downturn, ASML was able to offer job security to most of the payroll employees, as can be seen in graph 20. This illustrates that in a volatile, short-cycle market, a relatively high fix - flex ratio provides more job security to our payroll employees.

Workforce Diversity & Inclusion
ASML aims to have a diverse and multicultural workforce, which combines many different competences and ensures a good cultural mix among our employees. ASML is a company with a high level of cultural diversity, which attracts talent from all over the world and continued to do so, despite the crisis. Graph 21 and 22 show the nationalities of the new hires in 2008 and 2009.

The online international "Cultural Navigator" is an e-learning resource for increasing cultural knowledge, awareness and understanding, and available to all ASML employees. It highlights over 100 cultures with comprehensive information on country, culture, economy, business and management practices. In working with colleagues (or suppliers and customers) from different backgrounds; it helps to better understand habits and cultural preferences so we can be more successful in communication and cooperation.

Table 12 gives an overview of the split between Dutch and non-Dutch employees (note that around half of the company's workforce is based at the Dutch headquarters in Veldhoven).

Table 12 Workforce level	Dutch	Non- Dutch	Total
Employees	2,945	2,925	5,870
Management	270	270	540
Senior management	75	58	133
Board of Managers	3	2	5
Total	3,293	3,255	6,548

ASML's supervisory board consists of eight members, of which two are female. Four of these members are Dutch nationals.

The merit (salary) increase budget is set by country, based on salary market developments and affordability. In accordance with our remuneration policy, male and female employees are equally compensated regarding salary, bonuses and share of dividends. Every year, each employee is assessed within ASML on performance (accomplishments versus targets) and competency (demonstrated behavior against a pre-defined set of competencies). The merit increase for the employee is based on these assessment results; there is no relation to gender, nationality, religion, social position, age or any other such consideration in determining this merit increase. To build a more diverse workforce, an analysis will be initiated in 2010 to determine the oppurtunities for further strengthen ASML diversity efforts.

In the USA, ASML's Equal Employment Opportunity (EEO) Policy is applied in proceedings related to recruitment, promotions and employee relations; this EEO Policy is published on company bulletin boards and ASML's intranet and a copy is sent to all USA employees annually.

ASML has a complaints and whistleblower's procedure to facilitate the reporting of (suspected) breaches of the ASML Code of Conduct, including but not limited to reporting of acts or behavior concerning discrimination or violation of human rights. In 2010, ASML will implement new measures and one new procedure (replacing and combining the current complaints and whistleblower's procedure) to increase the visibility of and facilitate access to the complaints and whistleblower's procedures.

In 2009, we registered 3,353 people as new entries in our external talent pool. This qualitative talent pool is essential to develop and sustain long-term relationships with our target audiences in order to create significant value for both parties. FutureScan, a periodical style career newsletter, is aimed at informing the talent pool about technical developments and challenges within ASML in order to make us the employer of choice for our target group. The focus will be on developing means for attracting the best, followed by messaging and communication with the talent pool.

ASML's referral program is part of our recruitment campaign. Current ASML employees often have access to a wide network of potential candidates, and ASML offers a monetary reward to employees who refer a candidate who is hired. In 2009, almost eight percent of all new employees in the Netherlands were hired via the referral program.

Another element involves informing our future employeeswho are now university students about ASML. We ask them to participate in guest lectures, open days and meet & greet events. We give insights into our technological roadmap to show them the intellectual and organizational challenges we will face in the coming years. Cleanroom tours, business cases, lectures at universities and online videos are very much appreciated and have helped to explain technical challenges for engineers who think ahead.

In addition to recruiting new employees, it is critically important to retain people who already work for ASML. Table 13 breaks down the ASML workforce by years of employment. As is clear, the ASML workforce is evenly spread in this regard.

Table 13 Years of employment	Asia	Europe	USA	Total
< 2	229	497	96	822
2 - 4	554	1,063	309	1,926
5 - 9	349	815	293	1,457
10 - 14	155	1,099	451	1,705
15 >	4	326	308	638
Total	1,291	3,800	1,457	6,548

Although ASML was forced to lay off 12 percent of its workforce in early 2009 (fix and flex combined), ASML focused on measures to reduce the number of staff departures due to the crisis as much as possible.

ASML also participated in Dutch government programs to encourage the retention of employees in the high tech sector. In the period from January until June 2009, 1,100 employees participated in the Labor Time Reduction Program. Since August 1, 2009 a program has been deployed within the Knowledge Workers Arrangement. The universities of Delft and Eindhoven as well as the TNO, ASML and flex labor partners are participating in a joint development program to execute R&D activities. This program - which includes approximately 250 employees - offers all parties additional possibilities for retaining knowledge workers and is similar to an open innovation program.

ASML strives to offer employees competitive rewards for their performance and provide motivating working conditions, including coaching, training and personal career development opportunities. The responsibility for development and learning is shared by employees, managers and HR staff. ASML employees are encouraged to take the initiative for their own career development and learning. Managers and HR staff are responsible for supporting initiatives towards development and learning within ASML. These include:

• Performance management
• Compensations and Benefits
• Stimulating Leadership and Career Development
• Job-oriented training

Performance management
ASML employees in job grades below Director level receive regular (annual) performance reviews. This performance management process is supported by a web-based application for objective setting, career and personal development, mid-year reviews and performance appraisals. This approach also includes the ASML Competency Model that seeks to develop the ability to perform effectively in certain situations or to perform tasks against set targets. This competency set is based on input from 250 managers and employees worldwide and comprises 34 competencies. The two generic ASML competencies ("Commitment" and "Flexibility"), together with a limited set of job family specific competencies are used for objective setting, performance review and development.

In 2009, personal Development Action Plans were developed for most employees below Director level. The plans included such topics as targets and opportunities for development, career direction and job improvement initiatives. Nearly 100 percent of employees received performance appraisals during 2009 (formal appraisals are not mandatory for employees who join ASML after September 1).

Compensations and Benefits
ASML's worldwide compensation and benefits framework and benchmarking methods help us to respond effectively to local market trends. These ensure that our employees have competitive and transparent compensation and benefits packages in each country in which we operate. ASML motivates its employees by recognizing and rewarding their performance at a competitive level.

ASML benchmarks compensation packages annually in order to monitor competitiveness on a country-by-country basis. The benchmark focuses on base salary including guaranteed payments, variable payments and long-term incentives. Based on survey findings, ASML has been able to define adjustments to benefits packages if required, as well as the costs of such adjustments and whether a local or international pooling approach would best serve ASML's needs. As a result, ASML can confirm that it offered competitive benefits packages at all locations in 2009.

As regards retirement benefits, ASML follows market practice and provides the mandatory level of benefits as required by local law, while in many countries ASML provides supplemental retirement benefits. For instance, in the USA, ASML offers a 401K plan to all employees. This pre-tax vehicle helps employees save for retirement, with a competitive company match of 50 percent. For highly compensated employees in the USA, ASML also offers a Deferred Compensation Plan, which is an opportunity to save additional pre-tax dollars.

In almost all countries, ASML provides supplemental Health benefits on top of the country's national insurance plan (if any) as per the local market practice. Key components of the healthcare plans include outpatient treatment, hospitalization and dental care. Employees may choose to cover their family under ASML's plan.

In the USA, a new comprehensive and competitive Health benefits plan will be offered effective January 2010 that is focused on wellness, service and choice. This program provides a large national network of medical and dental providers with access to care without referrals.

In all countries, ASML has "Leave of absence" policies. Although in most countries such matters as sick leave and maternity/paternity leave are highly regulated by local law, ASML also grants leave under the company's policy and good Human Resources practice.

The share-based payment plans are applicable to two categories: Senior and Executive management - excluding the Board of Management - and Employees. Each year, the Board of Management determines the total number of awards that can be granted in that year. The overall number of shares that are available is subject to approval by the Supervisory Board of ASML. These plans were continued in 2009.

Stimulating Leadership and Career Development
ASML believes it is beneficial to the organization and its employees if staff are offered sufficient opportunities to grow their competencies, skills and experiences and advance their career within the organization. A renewed ASML Leadership Review Process was defined, piloted and implemented in 2008. In 2008 and 2009 this process was expanded to more than 600 employees globally, with the addition that in 2009 an Employee Self-Assessment phase was introduced as a first step in the Leadership Review Process. This process leads to individualized development plans for the employees that participate in it.

As part of career development and to spread knowledge and experience throughout the organization, ASML employees are regularly sent abroad to work temporarily at another facility. An overview of these cross-border assignments is shown at table 14. Despite the economic downturn, ASML maintained a significant number of cross-border assignment (128 in 2009 vs. 181 in 2008) to secure transfer of knowledge and to provide learning and training opportunities.

Table 14 Cross-border assignments ASML	Host Region
Home Region	Asia	The Netherlands	Rest of Europe	USA	Total
Asia	19	36		1	56
The Netherlands	32		8	9	49
Rest of Europe	1	1			2
USA	12	8	1		21
Total	64	45	9	10	128

Another knowledge transfer program is the international training of ASML employees. In 2009, 214 colleagues from Asia and the US visited our headquarters in Veldhoven for training. These trainings last an average of 10 weeks per person. Knowledge transfer is executed in different areas.

Job-oriented training
ASML's philosophy on training is that 70 percent takes place "on the job" and 30 percent is achieved through specific training and coaching. ASML encourages employees to enhance their job-oriented skills by attending training workshops or programs at accredited educational institutions. These range from personal effectiveness workshops and personal computer training to technical, non-product-related education. During the first half of 2009, when business was slow, our employees in manufacturing spent significant time in internal trainings for ASML's newly developed products NXT and NXE. This training time was facilitated by the Labor Time Reduction support program.

Since 2007, ASML has been using a worldwide Learning Management System (LMS) to manage functional skills development for large groups of people in Customer Support and Manufacturing sectors.

Non-product-related training programs were attended over 4,200 times during 2009. This is a lower number than the 7,000 attended training programs in 2008 and is the result of a stricter training policy during 2009 to anticipate the economic downturn and the need to reduce non-business-critical costs. This number excludes several broadly implemented Computer Based Training (CBT) offerings, i.e. on Intellectual Property Awareness and on Anti-Trust. During 2009, we developed a CBT on Knowledge Protection that will be broadly implemented in 2010.

In 2009, ASML spent approximately € 1.8 million on non-product-related training, amounting to almost € 275 per payroll employee. On average, each employee received 16 hours of training. Due to the economic downturn in 2009, training was reduced to what was business critical, which explains the reduction in training spending and training hours from 2008 to 2009.

Employee involvement
ASML is committed to keeping its workforce involved in its business decisions. In the Netherlands, consultation and negotiation with employee representatives is organized through the works council, as required by law. There is a roster of meetings throughout the year with works council representatives to discuss operations, finance, governance and social issues with a variety of corporate departments. Our employees are represented in Korea by the Labor Management Council and in France by the Commitée d'Entreprise.