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ASML Announces 2012 Fourth Quarter and Full Year Results in Line with Guidance

  ASML Announces 2012 Fourth Quarter and Full Year Results in Line with
  Guidance

                ASML plans 2013 at sales level similar to 2012

Business Wire

VELDHOVEN, Netherlands -- January 17, 2013

ASML Holding N.V. (ASML) today publishes 2012 fourth-quarter results and full
year results:

                                                            
                          Q4 2012      Q3 2012      FY2012      FY2011
Net sales                  1,023         1,229         4,732        5,651
...of which service
and field option           257           229           930          767
sales
New systems sold           25            32            146          195
(units)
Used systems sold          9             8             24           27
(units)
                                                                             
Net bookings,              667           831           3,312        2,909
excluding EUV
Net bookings,              32            33            144          134
excluding EUV (units)
ASP of booked
systems, excluding         20.9          25.2          23.0         21.7
EUV
Systems backlog,           1,214         1,340         1,214        1,733
excluding EUV
Systems backlog,           46            48            46           71
excluding EUV (units)
Gross margin               41.1          43.2          42.4         43.3
                                                                             
End-quarter cash and
cash equivalents and       2,698         6,159         2,698        2,732
short-term
investments
Net income                 298           275           1,146        1,467
EPS (in euro)              0.66          0.65          2.70         3.45
Adjusted EPS* (in         0.73         0.67         2.80        3.45
euro)
(Figures in millions of euros unless otherwise indicated)

* Adjusted EPS is a non-GAAP measure which adjusts EPS for the temporary
share increase in Q4 and Q3 2012 due to the Customer Co-Investment Program.¹

Outlook

“2012 fourth-quarter and full year sales and profit came in as expected,
making the year our second best ever. The high level of sales was mainly
supported by the large 28-32 nanometer (nm) capacity investment made by the
Foundry industry, while Memory capacity investments represented only 25
percent of total net sales, never really picking up, as its major driver, the
PC business, shrunk compared to 2011. We plan net sales for 2013 at a similar
level to that of 2012, with a slow Q1 start, recovering in Q2 and a relatively
large second half. This full-year perspective is supported by two engines that
are less dependent on macroeconomic circumstances: Firstly, there is a
strategic technology transition need for very lithography-intensive 14-20 nm
foundry and logic nodes, which will enable the next generation portable
products, for which all semiconductor architecture leaders have designs
pending and need initial capacity. Secondly, ASML will ship its first
NXE:3300B EUV tool in Q2 targeting for a maximum of 11 potential shipments in
2013, representing a net sales value of around EUR 700 million. We are
encouraged by the latest EUV development performance as we have now
demonstrated a stable 40 Watts of EUV source power against a production target
of 105 Watts. Also, the source design was tested successfully at up to 60
Watts for debris mitigation. Furthermore, the NXE:3300B first system has shown
good overlay and imaging performance. We expect the DRAM and NAND Flash memory
segments to continue investing at a minimum level in 2013, generating an
upside revenue opportunity for ASML if the PC business picks up with good
related Solid State Drive attach rates,” said Eric Meurice, President and
Chief Executive Officer of ASML.

For the first quarter of 2013, ASML expects net sales of about EUR 850
million, gross margin of about 38 percent, R&D costs of EUR 185 million, other
income of EUR 16 million which consists of contributions from participants of
the Customer Co-Investment Program and SG&A costs of EUR 63 million including
EUR 6 million in expenses related to the pending Cymer acquisition.

Fourth-Quarter Product Highlights

  *Our TWINSCAN NXT lithography system has achieved record matched machine
    overlay of less than 4 nm, a 2 nm improvement.
  *Holistic Lithography continued to expand and integrated metrology and
    feedback loops which enable shrink, reduce drift and improve yield
    contributed to record sales from service and field options of EUR 257
    million.
  *In our EUV program, our NXE:3100 pre-production systems have exposed a
    cumulative total of more than 30,000 wafers at customer sites, enabling
    successful recipe development for the sub-14 nm Logic and 22 nm DRAM
    nodes, which may soon lead to additional orders for production systems for
    delivery targeted in 2014.
  *Imaging of the NXE:3300B, the system intended for high-volume
    manufacturing, continues to improve, shows excellent results down to 14
    nm. The first NXE:3300B customer system is in final stage of test and
    qualification in our cleanroom in Veldhoven.
  *Progress towards an EUV light source powerful enough for high-volume
    manufacturing has been encouraging and steady: We have seen in the past
    quarter results from the first fully integrated EUV source with stable
    full-field expose power of up to 40 Watts with good dose control over
    extended time. This allows us to prepare initial shipments of the
    NXE:3300B and gives us confidence in the ability to implement improvements
    over time to power levels enabling 70 wafers per hour at customers
    mid-2014.
  *For our new 450mm development program, ASML is expanding the design team
    in line with the targeting of pre-production systems for 2016 and
    production for 2018

Cash return programs

Due to ASML's strong financial position and operating cash flow prospects, we
intend to continue to return excess cash to shareholders through increasing
dividends and share buy back programs, thus supporting our shareholders in
their continued investment in ASML.

ASML intends to again increase the dividend by 15 percent compared with last
year. Therefore, we will submit a proposal to the 2013 Annual General Meeting
of Shareholders (AGM) to declare a dividend in respect of 2012 of EUR 0.53 per
ordinary share (for a total amount of approximately EUR 215 million), compared
with a dividend of EUR 0.46 per ordinary share paid in respect of 2011. The
proposed dividend represents 19.6 percent of earnings per share in 2012.

For regulatory reasons, ASML will not announce any new share buy back program
before Cymer’s Extraordinary General Meeting of Shareholders, which will be
held on 5 February 2013.

Additional information

  *In the fourth quarter, we announced the intended cash-and-stock
    acquisition of lithographic light source supplier Cymer. As part of the
    regulatory review process, clearance has been granted by the U.S.
    Committee on Foreign Investment in the United States (CFIUS) and German
    anti-trust authorities. We continue to expect the transaction to close in
    the first half of 2013.
  *In the fourth quarter ASML released EUR 119.5 million of its liability for
    unrecognized tax benefits after successful conclusion of tax audits in
    different jurisdictions, which resulted in a net tax benefit of EUR 115.8
    million for the quarter. The release of the liability for unrecognized tax
    benefits almost completely offsets the income tax due over ASML’s earnings
    for the year.
  *SG&A of EUR 79.5 million reflected exceptional additional costs of EUR 14
    million, related to the acquisition offer for Cymer.

About ASML

ASML is one of the world's leading providers of lithography systems for the
semiconductor industry, manufacturing complex machines that are critical to
the production of integrated circuits or chips. Headquartered in Veldhoven,
the Netherlands, ASML is traded on Euronext Amsterdam and NASDAQ under the
symbol ASML. ASML has 8,500 employees on payroll (expressed in full time
equivalents), serving chip manufacturers in more than 55 locations in 16
countries. More information about our company, our products and technology,
and career opportunities is available on our website: www.asml.com

Press Conference

A press conference hosted by CEO Eric Meurice and CFO Peter Wennink will be
held at our office in Veldhoven at 11:00 AM Central European Time / 05:00 AM
Eastern U.S. time. To listen to the press conference, access is available via
www.asml.com

A presentation about 2012 fourth quarter and full year results is available on
www.asml.com

A video statement of CFO Peter Wennink is available on www.asml.com

Investor and Media Conference Call

A conference call for investors and media will be hosted by CEO Eric Meurice
and CFO Peter Wennink at 15:00 PM Central European Time / 09:00 AM Eastern
U.S. time. Dial-in numbers are: in the Netherlands + 31 20 531 5871 and the US
+1 646 254 3367 (US participants will have to quote the following confirmation
code when dialing into the conference: 6663104). To listen to the conference
call, access is also available via www.asml.com

A replay of the Investor and Media Call will be available on www.asml.com

2012 Annual Report

ASML will publish its 2012 annual report on Form 20-F, Statutory Annual Report
and Remuneration Report on 13 February 2013. The reports will be published on
our website at www.asml.com.

US GAAP and IFRS Financial Reporting

ASML's primary accounting standard for quarterly earnings releases and annual
reports is US GAAP, the accounting standard generally accepted in the United
States. Quarterly US GAAP consolidated statements of operations, consolidated
statements of cash flows and consolidated balance sheets, and a reconciliation
of net income and equity from US GAAP to IFRS as adopted by the EU are
available on www.asml.com

In addition to reporting financial figures in accordance with US GAAP, ASML
also reports financial figures in accordance with IFRS for statutory purposes.
The most significant differences between US GAAP and IFRS that affect ASML
concern the capitalization of certain product development costs, the
accounting of share-based payment plans, the accounting of income taxes and
the accounting of reversal of inventory write-downs. ASML’s quarterly IFRS
consolidated income statement, consolidated statement of cash flows,
consolidated statement of financial position and a reconciliation of net
income and equity from US GAAP to IFRS are available on www.asml.com

The consolidated balance sheets of ASML Holding N.V. as of December 31, 2012,
the related consolidated statements of operations and consolidated statements
of cash flows for the quarter ended December 31, 2012 as presented in this
press release are unaudited.

Regulated Information

This press release, the US GAAP consolidated financial statements, the IFRS
consolidated financial statements and the Statutory Interim Report published
on www.asml.com comprise regulated information within the meaning of the Dutch
Financial Markets Supervision Act (Wet op het financieel toezicht).

Forward Looking Statements

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act
of 1995: the matters discussed in this document may include forward-looking
statements, including statements made about our outlook, including expected
sales trends, expected shipments of tools, productivity of our tools, purchase
commitments, IC unit demand, financial results, expected gross margin and
expenses and statements about our plans to return funds to our shareholders.
These forward looking statements are subject to risks and uncertainties
including, but not limited to: economic conditions, product demand and
semiconductor equipment industry capacity, worldwide demand and manufacturing
capacity utilization for semiconductors (the principal product of our customer
base), including the impact of general economic conditions on consumer
confidence and demand for our customers’ products, competitive products and
pricing, the impact of manufacturing efficiencies and capacity constraints,
the continuing success of technology advances and the related pace of new
product development and customer acceptance of new products, our ability to
enforce patents and protect intellectual property rights, the risk of
intellectual property litigation, availability of raw materials and critical
manufacturing equipment, trade environment, changes in exchange rates,
available cash, distributable reserves for dividend payments and share
repurchases, risks associated with our co-investment program, including
whether the 450mm and EUV research and development programs will be successful
and ASML’s ability to hire additional workers as part of the 450mm and EUV
development programs, our ability to successfully complete acquisitions,
including the Cymer transaction or the expected benefits of the Cymer
transaction and other risks indicated in the risk factors included in ASML’s
Annual Report on Form 20-F and other filings with the US Securities and
Exchange Commission.

The foregoing risk list of factors is not exhaustive. You should consider
carefully the foregoing factors and the other risks and uncertainties that
affect the business of ASML described in the risk factors included in ASML's
Annual Report on Form 20-F and other documents filed by ASML from time to time
with the SEC. ASML disclaims any obligation to update the forward-looking
statements contained herein.

Important Information for Investors and Stockholders

This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. No
offer of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended. The
proposed transaction will be submitted to the stockholders of Cymer for their
consideration. In connection with the proposed transaction, Cymer has filed a
proxy statement with the SEC and ASML has filed a registration statement on
Form F-4 with additional information concerning the transaction, including a
proxy statement/prospectus. CYMER STOCKHOLDERS ARE ADVISED TO READ THESE
DOCUMENTS CAREFULLY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. The proxy statement, the registration
statement, and other documents containing other important information about
Cymer and ASML filed or furnished to the SEC may be read and copied at the
SEC’s public reference room located at 100 F Street, N.E., Washington, D.C.
20549. Information on the operation of the Public Reference Rooms may be
obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains a
website, www.sec.gov, from which any electronic filings made by ASML and Cymer
may be obtained without charge. In addition, investors and shareholders may
obtain copies of the documents filed with or furnished to the SEC upon oral or
written request without charge. Requests may be made in writing by regular
mail by contacting ASML at the following address: De Run 6501, 5504 DR,
Veldhoven, The Netherlands, Attention: Investor Relations, or by contacting
Cymer at the following address: 17075 Thornmint Court, San Diego, CA, 92127,
Attention: Investor Relations, +1 858 385 6097.

Cymer and ASML and their respective directors, executive officers and
employees and other persons may be deemed to be participants in the
solicitation of proxies in respect of the transaction. Information regarding
Cymer’s directors and executive officers and their ownership of Cymer common
stock is available in Cymer’s proxy statement for its 2012 meeting of
stockholders, as filed with the SEC of Schedule 14A on April 11, 2012.
Information about ASML’s directors and executive officers and their ownership
of ASML ordinary shares is available in its Annual Report on Form 20-F for the
year ended December 31, 2011 and is available in the joint proxy
statement/prospectus . Other information regarding the interests of such
individuals as well as information regarding Cymer’s and ASML’s directors and
officers is also set forth in the proxy statement/prospectus. These documents
can be obtained free of charge from the sources indicated above.

^1 Adjusted EPS is calculated using the weighted average number of shares
outstanding excluding the shares issued (in October and November 2012) to the
participants in the Customer Co-Investment Program. EPS was calculated based
on a weighted average basic number of shares of 452,452 thousand in Q4,
422,516 thousand in Q3, and 424,096 thousand for the full year 2012. Adjusted
EPS was calculated based on an adjusted weighted average basic number of
shares of 406,801 thousand in Q4, 409,229 thousand in Q3, and 409,340 thousand
for the full year 2012.No adjustments were made to net income in calculating
Adjusted EPS.

                                
ASML - Summary U.S. GAAP Consolidated Statements of Operations ^1,2
                                                        
                                   Three months ended,    Twelve months ended,
                                   Dec 31,      Dec 31,   Dec 31,      Dec 31,
                                   2012         2011      2012         2011
(in millions EUR, except per                                    
share data)
                                                                       
Net system sales                   766.5        992.7     3,801.6      4,883.9
Net service and field option      256.6       218.2    929.9       767.1
sales
Total net sales                    1,023.1      1,210.9   4,731.5      5,651.0
                                                                       
Total cost of sales               602.9       714.5    2,726.3     3,201.6
Gross profit                       420.2        496.4     2,005.2      2,449.4
                                                                       
Research and development costs     155.4        150.4     589.1        590.3
Selling, general and              79.5        56.3     259.3       217.9
administrative costs
Income from operations             185.3        289.7     1,156.8      1,641.2
                                                                       
Interest income (expense), net    (3.4)       1.5      (6.2)       7.4
Income before income taxes         181.9        291.2     1,150.6      1,648.6
                                                                       
Benefit from (provision for)       (3.7)        (6.5)     (96.8)       (181.6)
income taxes
Benefit from release of
liability for unrecognized tax    119.5     ^4 -        92.5      ^4 -
benefits
Net income                         297.7        284.7     1,146.3      1,467.0
                                                                       
                                                                       
Basic net income per ordinary      0.66         0.69      2.70         3.45
share
Diluted net income per ordinary ^3 0.65         0.68      2.68         3.42
share
                                                                       
Weighted average number of ordinary shares used in computing per share amounts
(in millions):
Basic                              452.5        415.6     424.1        425.6
Diluted                         ^3 455.4        419.0     427.0        429.1
                                                                       
                                                                       
ASML - Ratios and Other Data
^1,2
                                                                       
                                   Three months ended,    Twelve months ended,
                                   Dec 31,      Dec 31,   Dec 31,      Dec 31,
                                   2012         2011      2012         2011
(in millions EUR, except                                        
otherwise indicated)
                                                                       
Gross profit as a percentage of    41.1         41.0      42.4         43.3
net sales
Income from operations as a        18.1         23.9      24.4         29.0
percentage of net sales
Net income as a percentage of      29.1         23.5      24.2         26.0
net sales
Income taxes as a percentage of    (63.7)    ^4 2.3       0.4       ^4 11.0
income before income taxes
Shareholders’ equity as a          54.9         47.4      54.9         47.4
percentage of total assets
Sales of systems (in units)        34           41        170          222
Average selling price of system    22.5         24.2      22.4         22.0
sales (EUR millions)
Value of systems backlog           1,214        1,733     1,214        1,733
excluding EUV (EUR millions)
Systems backlog excluding EUV      46           71        46           71
(in units)
Average selling price of
systems backlog excluding EUV      26.4         24.4      26.4         24.4
(EUR millions)
Value of booked systems            667          710       3,312        2,909
excluding EUV (EUR millions)
Net bookings excluding EUV (in     32           37        144          134
units)
Average selling price of booked
systems excluding EUV (EUR         20.9         19.2      23.0         21.7
millions)
Number of payroll employees in     8,497        7,955     8,497        7,955
FTEs
Number of temporary employees      2,139        1,935     2,139        1,935
in FTEs
                                                                       
                                                                       
ASML - Summary U.S. GAAP Consolidated Balance Sheets ^1,2
                                                                       
                                   Dec 31,      Dec 31,
                                   2012         2011
(in millions EUR)                                               
                                                                       
ASSETS
Cash and cash equivalents          1,767.6      2,731.8
Short-term investments             930.0        -
Accounts receivable, net           605.3        880.6
Finance receivables, net           265.2        78.9
Current tax assets                 57.1         32.1
Inventories, net                   1,857.0      1,624.6
Deferred tax assets                103.7        120.7
Other assets                      246.0       238.1               
Total current assets               5,831.9      5,706.8
                                                                       
Finance receivables, net           38.6         -
Deferred tax assets                39.4         38.7
Other assets                       311.6        307.3
Goodwill                           149.2        146.0
Other intangible assets, net       9.9          8.4
Property, plant and equipment,    1,029.9     1,053.6             
net
Total non-current assets           1,578.6      1,554.0
                                                                       
Total assets                       7,410.5      7,260.8
                                                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities                2,086.3      2,233.0
                                                                       
Long-term debt                     755.9        733.8
Deferred and other tax             88.3      ^4 176.7
liabilities
Provisions                         8.0          10.0
Accrued and other liabilities     405.1       663.1               
Total non-current liabilities      1,257.3      1,583.6
                                                               
Total liabilities                  3,343.6      3,816.6
                                                                       
Shareholders’ equity              4,066.9     3,444.2             
Total liabilities and              7,410.5      7,260.8
shareholders’ equity
                                                                       
                                                                       
ASML - Summary U.S. GAAP Consolidated Statements of Cash Flows ^1,2
                                                                       
                                   Three months ended,    Twelve months ended,
                                   Dec 31,      Dec 31,   Dec 31,      Dec 31,
                                   2012         2011      2012         2011
(in millions EUR)                                               
                                                                       
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income                         297.7        284.7     1,146.3      1,467.0
                                                                       
Adjustments to reconcile net
income to net cash flows from
operating activities:
Depreciation and amortization      43.5         40.1      186.6        165.2
Impairment                         0.5          2.5       3.3          12.3
Loss on disposal of property,      0.2          1.2       2.2          3.4
plant and equipment
Share-based payments               5.0          3.6       18.7         12.4
Allowance for doubtful             (0.3)        0.5       0.5          0.8
receivables
Allowance for obsolete             22.9         23.0      130.9        60.2
inventory
Deferred income taxes              (120.3)   ^4 27.6      (72.4)    ^4 63.2
Changes in assets and             (504.7)     (250.8)  (712.6)     286.0
liabilities
Net cash provided by (used in)     (255.5)      132.4     703.5        2,070.5
operating activities
                                                                       
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant and    (35.7)       (93.8)    (171.9)      (301.0)
equipment
Purchase of intangible assets      (4.3)        -         (7.6)        -
Purchase of available for sale     (90.0)       -         (1,380.0)    -
securities
Maturity of available for sale     200.0        -         450.0        -
securities
Acquisition of subsidiaries       (10.3)      -        (10.3)      -
(net of cash acquired)
Net cash provided by (used in)     59.7         (93.8)    (1,119.8)    (301.0)
investing activities
                                                                       
CASH FLOWS FROM FINANCING
ACTIVITIES
Dividend paid                      -            -         (188.9)      (172.6)
Purchase of shares                 (265.7)      (161.1)   (535.4)      (700.5)
Net proceeds from issuance of      840.7        8.0       3,907.7   ^5 34.1
shares
Capital repayment                  (3,728.3)    -         (3,728.3) ^5 -
Deposits from customers            -            -         -            (150.0)
Repayment of debt                  (0.8)        (0.7)     (2.9)        (2.6)
Tax benefit from share-based      0.6         -        2.2         -
payments
Net cash provided by (used in)     (3,153.5)    (153.8)   (545.6)      (991.6)
financing activities
                                                               
Net cash flows                     (3,349.3)    (115.2)   (961.9)      777.9
                                                                       
Effect of changes in currency     (1.9)       8.9      (2.3)       4.1
rates on cash
Net increase (decrease) in cash    (3,351.2)    (106.3)   (964.2)      782.0
and cash equivalents
                                                                       

                                                                    
ASML - Quarterly Summary U.S. GAAP Consolidated Statements of Operations ^1,2
                                               
                         Three months ended,
                                                                       
                         Dec 31,      Sep 30,    Jul 1,      Apr 1,    Dec 31,
                         2012         2012       2012        2012      2011
(in millions EUR,
except per share                                              
data)
                                                                       
Net system sales         766.5        1,000.3    984.8       1,050.0   992.7
Net service and field   256.6       228.5     242.9      201.9    218.2
option sales
Total net sales          1,023.1      1,228.8    1,227.7     1,251.9   1,210.9
                                                                       
Total cost of sales     602.9       697.8     697.3      728.3    714.5
Gross profit             420.2        531.0      530.4       523.6     496.4
                                                                       
Research and             155.4        143.8      144.6       145.3     150.4
development costs
Selling, general and    79.5        69.7      54.7       55.4     56.3
administrative costs
Income from              185.3        317.5      331.1       322.9     289.7
operations
                                                                       
Interest income         (3.4)       (2.5)     (0.9)      0.6      1.5
(expense), net
Income before income     181.9        315.0      330.2       323.5     291.2
taxes
                                                                       
Benefit from
(provision for)         115.8     ^4 (40.3)    (38.3)     (41.5)   (6.5)
income taxes
Net income               297.7        274.7      291.9       282.0     284.7
                                                                       
                                                                       
Basic net income per     0.66         0.65       0.71        0.68      0.69
ordinary share
Diluted net income    ^3 0.65         0.65       0.71        0.68      0.68
per ordinary share
                                                                       
Weighted average number of ordinary shares used in computing per share amounts
(in millions):
Basic                    452.5        422.5      409.5       411.8     415.6
Diluted               ^3 455.4        425.7      412.7       415.0     419.0
                                                                       
                                                                       
ASML - Quarterly Summary Ratios and other data ^1,2
                                                                       
                         Three months ended,
                                                                       
                         Dec 31,      Sep 30,    Jul 1,      Apr 1,    Dec 31,
                         2012         2012       2012        2012      2011
(in millions EUR,
except otherwise                                              
indicated)
                                                                       
Gross profit as a
percentage of net        41.1         43.2       43.2        41.8      41.0
sales
Income from
operations as a          18.1         25.8       27.0        25.8      23.9
percentage of net
sales
Net income as a
percentage of net        29.1         22.4       23.8        22.5      23.5
sales
Income taxes as a
percentage of income     (63.7)    ^4 12.8       11.6        12.8      2.3
before income taxes
Shareholders’ equity
as a percentage of       54.9         65.2       49.8        48.8      47.4
total assets
Sales of systems (in     34           40         44          52        41
units)
Average selling price
of system sales (EUR     22.5         25.0       22.4        20.2      24.2
millions)
Value of systems
backlog excluding EUV    1,214        1,340      1,503       1,598     1,733
(EUR millions)
Systems backlog
excluding EUV (in        46           48         55          56        71
units)
Average selling price
of systems backlog       26.4         27.9       27.3        28.5      24.4
excluding EUV (EUR
millions)
Value of booked
systems excluding EUV    667          831        949         865       710
(EUR millions)
Net bookings
excluding EUV (in        32           33         43          36        37
units)
Average selling price
of booked systems        20.9         25.2       22.1        24.0      19.2
excluding EUV (EUR
millions)
Number of payroll        8,497        8,203      8,010       7,986     7,955
employees in FTEs
Number of temporary      2,139        2,027      1,860       1,833     1,935
employees in FTEs
                                                                       
                                                                       
ASML - Quarterly Summary U.S. GAAP Consolidated Balance Sheets ^1,2
                                                                       
                         Dec 31,      Sep 30,    Jul 1,      Apr 1,    Dec 31,
                         2012         2012       2012        2012      2011
(in millions EUR)                                             
                                                                       
ASSETS
Cash and cash            1,767.6      5,118.8    1,851.8     2,953.4   2,731.8
equivalents
Short-term               930.0        1,040.0    850.0       -         -
investments
Accounts receivable,     605.3        326.8      631.7       761.2     880.6
net
Finance receivables,     265.2        221.6      122.3       78.8      78.9
net
Current tax assets       57.1         36.6       23.6        15.6      32.1
Inventories, net         1,857.0      1,920.0    1,721.2     1,607.6   1,624.6
Deferred tax assets      103.7        111.0      123.4       117.3     120.7
Other assets            246.0       235.0     235.2      233.2    238.1
Total current assets     5,831.9      9,009.8    5,559.2     5,767.1   5,706.8
                                                                       
Finance receivables,     38.6         44.7       -           -         -
net
Deferred tax assets      39.4         38.3       40.1        38.0      38.7
Other assets             311.6        304.9      290.5       318.0     307.3
Goodwill                 149.2        145.9      150.2       141.5     146.0
Other intangible         9.9          7.2        8.6         10.1      8.4
assets, net
Property, plant and     1,029.9     1,036.9   1,169.2    1,124.6  1,053.6
equipment, net
Total non-current        1,578.6      1,577.9    1,658.6     1,632.2   1,554.0
assets
                                                                       
Total assets             7,410.5      10,587.7   7,217.8     7,399.3   7,260.8
                                                                       
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities      2,086.3      2,301.8    2,075.0     2,091.6   2,233.0
                                                                       
Long-term debt           755.9        747.3      741.8       736.8     733.8
Deferred and other       88.3      ^4 215.2      205.1       193.8     176.7
tax liabilities
Provisions               8.0          8.7        9.5         9.4       10.0
Accrued and other       405.1       409.0     590.9      755.7    663.1
liabilities
Total non-current        1,257.3      1,380.2    1,547.3     1,695.7   1,583.6
liabilities
                                                             
Total liabilities        3,343.6      3,682.0    3,622.3     3,787.3   3,816.6
                                                                       
Shareholders’ equity    4,066.9     6,905.7   3,595.5    3,612.0  3,444.2
Total liabilities and    7,410.5      10,587.7   7,217.8     7,399.3   7,260.8
shareholders’ equity
                                                                       
                                                                       
ASML - Quarterly Summary U.S. GAAP Consolidated Statements of Cash Flows ^1,2
                                                                       
                         Three months ended,
                                                                       
                         Dec 31,      Sep 30,    Jul 1,      Apr 1,    Dec 31,
                         2012         2012       2012        2012      2011
(in millions EUR)                                             
                                                                       
CASH FLOWS FROM
OPERATING ACTIVITIES
Net income               297.7        274.7      291.9       282.0     284.7
                                                                       
Adjustments to
reconcile net income
to net cash flows
from operating
activities:
Depreciation and         43.5         36.7       56.8        49.6      40.1
amortization
Impairment               0.5          1.7        1.1         -         2.5
Loss on disposal of
property, plant and      0.2          0.5        1.2         0.3       1.2
equipment
Share-based payments     5.0          4.9        4.4         4.4       3.6
Allowance for            (0.3)        0.5        0.1         0.2       0.5
doubtful receivables
Allowance for            22.9         31.0       53.4        23.6      23.0
obsolete inventory
Deferred income taxes    (120.3)   ^4 25.6       0.7         21.6      27.6
Changes in assets and   (504.7)     113.7     (335.5)    13.9     (250.8)
liabilities
Net cash provided by
(used in) operating      (255.5)      489.3      74.1        395.6     132.4
activities
                                                                       
CASH FLOWS FROM
INVESTING ACTIVITIES
Purchase of property,    (35.7)       (50.2)     (38.8)      (47.2)    (93.8)
plant and equipment
Purchase of              (4.3)        -          -           (3.3)     -
intangible assets
Purchase of available    (90.0)       (440.0)    (850.0)     -         -
for sale securities
Maturity of available    200.0        250.0      -           -         -
for sale securities
Acquisition of
subsidiaries (net of    (10.3)      -         -          -        -
cash acquired)
Net cash provided by
(used in) investing      59.7         (240.2)    (888.8)     (50.5)    (93.8)
activities
                                                                       
CASH FLOWS FROM
FINANCING ACTIVITIES
Dividend paid            -            -          (188.9)     -         -
Purchase of shares       (265.7)      (25.2)     (108.8)     (135.7)   (161.1)
Net proceeds from        840.7        3,046.5    4.2         16.3      8.0
issuance of shares
Capital repayment        (3,728.3)    -          -           -         -
Repayment of debt        (0.8)        (0.7)      (0.7)       (0.7)     (0.7)
Tax benefit from        0.6         1.5       -          0.1      -
share-based payments
Net cash provided by
(used in) financing      (3,153.5)    3,022.1    (294.2)     (120.0)   (153.8)
activities
                                                             
Net cash flows           (3,349.3)    3,271.2    (1,108.9)   225.1     (115.2)
                                                                       
Effect of changes in
currency rates on       (1.9)       (4.2)     7.3        (3.5)    8.9
cash
Net increase
(decrease) in cash       (3,351.2)    3,267.0    (1,101.6)   221.6     (106.3)
and cash equivalents
                                                                       

Notes to the Summary U.S. GAAP Consolidated Financial Statements

Basis of Presentation

ASML follows accounting principles generally accepted in the United States of
America (“U.S. GAAP”). Further disclosures, as required under U.S. GAAP in
annual reports, are not included in the summary consolidated financial
statements. Unless stated otherwise, the accompanying consolidated financial
statements are stated in millions of euros (‘EUR’).

Principles of consolidation

The consolidated financial statements include the financial statements of ASML
Holding N.V. and all of its subsidiaries and the variable interest entities in
which ASML is the primary beneficiary (together referred to as “ASML” or the
“Company”). Subsidiaries are all entities over which ASML has the power to
govern the financial and operating policies generally accompanying a
shareholding of more than one half of the voting rights. All intercompany
profits, balances and transactions have been eliminated in the consolidation.

Use of estimates

The preparation of ASML’s consolidated financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities on the balance sheet dates, and the reported
amounts of revenue and expenses during the reported periods. Actual results
could differ from those estimates.

Recognition of revenues

In general, ASML recognizes revenue when all four revenue recognition criteria
are met: persuasive evidence of an arrangement exists; delivery has occurred
or services have been rendered; seller’s price to buyer is fixed or
determinable; and collectability is reasonably assured. At ASML, this policy
generally results in revenue recognition from the sale of a system upon
shipment. The revenue from the installation of a system is generally
recognized upon completion of that installation at the customer site. Each
system undergoes, prior to shipment, a "Factory Acceptance Test" in ASML’s
cleanroom facilities, effectively replicating the operating conditions that
will be present on the customer's site, in order to verify whether the system
will meet its standard specifications and any additional technical and
performance criteria agreed with the customer, if any. A system is shipped,
and revenue is recognized, only after all specifications are met and customer
sign-off is received or waived. In case not all specifications are met and the
remaining performance obligation is not essential to the functionality of the
system but is substantive rather than inconsequential or perfunctory, a
portion of the sales price is deferred. Although each system's performance is
re-tested upon installation at the customer's site, ASML has never failed to
successfully complete installation of a system at a customer’s premises.

The main portion of ASML’s revenue is derived from contractual arrangements
with its customers that have multiple deliverables, which mainly include the
sale of our systems, installation and training services and prepaid extended
and enhanced (optic) warranty contracts. For each of the specified
deliverables ASML determines the selling price by using either vendor specific
objective evidence (‘VSOE’), third party evidence (‘TPE’) or by best estimate
of the selling price (‘BESP’). When the Company is unable to establish
relative selling price using VSOE or TPE, the Company uses BESP in its
allocation of arrangement consideration. The total arrangement consideration
is allocated at inception of the arrangement to all deliverables on the basis
of their relative selling price. The revenue relating to the undelivered
elements of the arrangements is deferred at their relative selling prices
until delivery of these elements. Revenue from installation and training
services is recognized when the services are completed. Revenue from prepaid
extended and enhanced (optic) warranty contracts is recognized over the term
of the contract.

Foreign currency risk management

The Company uses the euro as its invoicing currency in order to limit the
exposure to foreign currency movements. Exceptions may occur on a customer by
customer basis. To the extent that invoicing is done in a currency other than
the euro, the Company is exposed to foreign currency risk.

It is the Company’s policy to hedge material transaction exposures, such as
forecasted sales and purchase transactions and material net remeasurement
exposures, such as accounts receivable and payable. The Company hedges these
exposures through the use of foreign exchange contracts.

As of December 31, 2012, shareholders’ equity includes EUR 4.9 million gain
(net of taxes: EUR 4.3 million gain; December 31, 2011: EUR 4.4 million loss)
representing the total anticipated gain to be released to sales, and EUR 6.0
million loss (net of taxes: EUR 5.3 million loss; December 31, 2011: EUR 10.3
million gain) to be charged to cost of sales, which will offset the EUR
equivalent of foreign currency denominated forecasted sales and purchase
transactions.

ASML – Reconciliation U.S. GAAP – IFRS ^1,2

Net income             Three months ended,           Twelve months ended,
                        Dec 31,    Dec 31,             Dec 31,    Dec 31,
                        2012        2011                2012        2011
(in millions EUR)                                          
Net income based on     297.7       284.7               1,146.3     1,467.0
U.S. GAAP
Development
expenditures (see       41.1        25.8                164.8       (2.2)
Note 1)
Share-based payments    (1.4)       0.3                 (1.0)       (0.3)
(see Note 2)
Reversal of
write-downs (see Note   (14.0)      3.4                 (7.2)       4.6
3)
Income taxes (see      (2.6)      2.8              (0.6)      24.9
Note 4)
Net income based on     320.8       317.0               1,302.3     1,494.0
IFRS
                                                                             
                                                                             
Shareholders’ equity    Dec 31,     Sep 30,   Jul 1,    Apr 1,      Dec 31,
                        2012        2012      2012      2012        2011
(in millions EUR)                                          
Shareholders’ equity    4,066.9     6,905.7   3,595.5   3,612.0     3,444.2
based on U.S. GAAP
Development
expenditures (see       396.8       356.6     308.7     267.3       233.0
Note 1)
Share-based payments    4.1         4.1       4.0       3.7         2.7
(see Note 2)
Reversal of
write-downs (see Note   -           14.0      14.4      6.5         7.2
3)
Income taxes (see      30.4       35.0     36.4     31.4       32.7
Note 4)
Equity based on IFRS    4,498.2     7,315.4   3,959.0   3,920.9     3,719.8

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Development expenditures

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS
38, ASML capitalizes certain development expenditures that are amortized over
the expected useful life of the related product generally ranging between one
and three years. Amortization starts when the developed product is ready for
volume production.

Under U.S. GAAP, ASML applies ASC 730, “Research and Development”. In
accordance with ASC 730, ASML charges costs relating to research and
development to operating expense as incurred.

Note 2 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January
1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value
of its share-based payments with respect to stock options and stock granted to
its employees after November 7, 2002. Under IFRS, at period end a deferred tax
asset is computed on the basis of the tax deduction for the share-based
payments under the applicable tax law and is recognized to the extent it is
probable that future taxable profit will be available against which these
deductible temporary differences will be utilized. Therefore, changes in
ASML’s share price do affect the deferred tax asset at period-end and result
in adjustments to the deferred tax asset.

As of January 1, 2006, ASML applies ASC 718 “Compensation- Stock Compensation”
which requires companies to recognize the cost of employee services received
in exchange for awards of equity instruments based upon the grant-date fair
value of those instruments. ASC 718’s general principle is that a deferred tax
asset is established as we recognize compensation costs for commercial
purposes for awards that are expected to result in a tax deduction under
existing tax law. Under U.S. GAAP, the deferred tax recorded on share-based
compensation is computed on the basis of the expense recognized in the
financial statements. Therefore, changes in ASML’s share price do not affect
the deferred tax asset recorded in our financial statements.

Note 3 Reversal of write-downs

Under IFRS, ASML applies IAS 2 (revised), “Inventories”. In accordance with
IAS 2, reversal ofa prior period write-down as a result ofa subsequent
increase in value of inventory should be recognized in the period in which the
value increase occurs.

Under U.S. GAAP, ASML appliesASC 330 “Inventory”. In accordance with ASC 330
reversal of a write-down is prohibited as a write-down creates a new cost
basis.

Note 4 Income taxes

Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1,
2005. In accordance with IAS 12 unrealized net income resulting from
intercompany transactions that are eliminated from the carrying amount of
assets in consolidation give rise to a temporary difference for which deferred
taxes must be recognized in consolidation. The deferred taxes are calculated
based on the tax rate applicable in the purchaser’s tax jurisdiction.

Under U.S. GAAP, the elimination of unrealized net income from intercompany
transactions that are eliminated from the carrying amount of assets in
consolidation give rise to a temporary difference for which prepaid taxes must
be recognized in consolidation. Contrary to IFRS, the prepaid taxes under U.S.
GAAP are calculated based on the tax rate applicable in the seller’s rather
than the purchaser’s tax jurisdiction.

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act
of 1995: the matters discussed in this document may include forward-looking
statements, including statements made about our outlook, including expected
sales trends, expected shipments of tools, productivity of our tools, purchase
commitments, IC unit demand, financial results, expected gross margin and
expenses and statements about our plans to return funds to our shareholders.
These forward looking statements are subject to risks and uncertainties
including, but not limited to: economic conditions, product demand and
semiconductor equipment industry capacity, worldwide demand and manufacturing
capacity utilization for semiconductors (the principal product of our customer
base), including the impact of general economic conditions on consumer
confidence and demand for our customers’ products, competitive products and
pricing, the impact of manufacturing efficiencies and capacity constraints,
the continuing success of technology advances and the related pace of new
product development and customer acceptance of new products, our ability to
enforce patents and protect intellectual property rights, the risk of
intellectual property litigation, availability of raw materials and critical
manufacturing equipment, trade environment, changes in exchange rates,
available cash, distributable reserves for dividend payments and share
repurchases, risks associated with our co-investment program, including
whether the 450mm and EUV research and development programs will be successful
and ASML’s ability to hire additional workers as part of the 450mm and EUV
development programs, our ability to successfully complete acquisitions,
including the Cymer transaction or the expected benefits of the Cymer
transaction and other risks indicated in the risk factors included in ASML’s
Annual Report on Form 20-F and other filings with the US Securities and
Exchange Commission.

The foregoing risk list of factors is not exhaustive. You should consider
carefully the foregoing factors and the other risks and uncertainties that
affect the business of ASML described in the risk factors included in ASML's
Annual Report on Form 20-F and other documents filed by ASML from time to time
with the SEC. ASML disclaims any obligation to update the forward-looking
statements contained herein.

^1 These financial statements are unaudited.

^2 Numbers have been rounded.

^3 The calculation of diluted net income per ordinary share assumes the
exercise of options issued under ASML stock option plans and the issue of
shares under ASML share plans for periods in which exercises or issues would
have a dilutive effect. The calculation of diluted net income per ordinary
share does not assume exercise of such options or issuances of shares when
such exercises or issuances would be anti-dilutive.

^4 In Q4 ASML released EUR 119.5 million of its liability for unrecognized tax
benefits after successful conclusion of tax audits in different jurisdictions,
which resulted in a net tax benefit of EUR 115.8 million in the fourth
quarter. The difference between the amount released in Q4(EUR 119.5 million)
and the full year 2012 (EUR 92.5 million) relates to the additions to the
liability for unrecognized tax benefits during the first three quarters of
2012. The net release of the liability for unrecognized tax benefits almost
completely offsets the income tax due over ASML’s income before income taxes
for the year.

^5 The net proceeds from issuance of shares includes an amount of EUR 3,853.9
million related to the Customer Co-Investment Program. The difference of EUR
125.6 million between the capital repayment of EUR 3,728.3 million and the net
proceeds from issuance of shares totaling EUR 3,853.9 million related to the
Customer Co-Investment Program relates to the capital repayment on ASML’s
treasury shares which participated in the Synthetic Share Buyback in November
2012.

Contact:

ASML Holding N.V.
Media Relations:
Corporate Communications
Lucas van Grinsven, +31 40 268 3949
Veldhoven, the Netherlands
or
Investor Relations:
Craig DeYoung, +1 480 383 4005
Tempe, Arizona, USA
or
Franki D’Hoore, +31 40 268 6494
Veldhoven, the Netherlands
 
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