ASML 2013 First-Quarter Results as Guided, Reiterates Full Year Expectation

  ASML 2013 First-Quarter Results as Guided, Reiterates Full Year Expectation

          ASML leadership succession within the Board of Management

Business Wire

VELDHOVEN, Netherlands -- April 17, 2013

ASML Holding N.V. (ASML) today publishes 2013 first-quarter results.

  *Q1 2013 gross margin within guidance, sales ahead of guidance
  *ASML reiterates expectation for full-year 2013 sales at a level similar to
    that of 2012
  *ASML announces share buy-back program of up to EUR 1 billion until
    end-2014
  *ASML leadership succession within the Board of Management

                                                Q1 2013    Q4 2012  
Net sales                                          892           1,023
...of which service and field option sales         215           257
Other income (from CCIP)                           14
New systems sold (units)                           25            25
Used systems sold (units)                          4             9
                                                                             
Net bookings, excluding EUV                        715           667
Net bookings, excluding EUV (units)                25            32
ASP of booked systems, excluding EUV               28.6          20.9
Systems backlog, excluding EUV                     1,266         1,214
Systems backlog, excluding EUV (units)             42            46
Gross margin                                       38.2          41.1
                                                                             
End-quarter cash and cash equivalents and          2,620         2,698
short-term investments
Net income                                         96            298
EPS (in euro)                                   0.24       0.66
(Figures in millions of euros unless otherwise indicated)

CEO Statement

“We achieved first quarter sales ahead of and gross margin in line with our
guidance, and reiterate our expectation for a sales acceleration during the
year, with a second quarter markedly stronger than the first quarter and a
large second half, leading to expected 2013 full year net sales at a similar
level to that of 2012. The underlying assumptions are unchanged, with foundry
and logic preparing for very lithography-intensive 14-20 nm technology nodes
to be used for next generation mobile end-products; while lithography
investments in memory are still muted, memory chip price recovery and
discussions on scanner shipment capability are signs of potential upside for
second half deliveries. EUV technology industrialization continues to make
steady progress on the trajectory set with the introduction of the improved
source concept last year: firstly, the EUV light sources have now been
demonstrated at 55 Watts with adequate dose control; secondly, the scanners
themselves have demonstrated production-worthy, 10 nm node compatible imaging
and overlay specifications. We therefore confirm our expectation of the ramp
of EUV-enabled semiconductor production in 2015, supported by our NXE:3300B
scanners, two of which are being prepared for shipment and installation in Q2
and Q3,” said Eric Meurice, President and Chief Executive Officer of ASML.

First-Quarter 2013 Product Highlights

  *We shipped five TWINSCAN NXT:1960Bi systems in the quarter, the successor
    to our TWINSCAN NXT:1950i system. The NXT:1960Bi offers a 20 percent
    improvement of overlay and focus control as well as a 30 percent
    improvement in CD uniformity, which will support manufacturing at the
    14-20 nm logic node.
  *As part of our Holistic Lithography portfolio, we released an EUV option
    for our Brion Tachyon Source Mask Optimization product and upgraded our
    EUV scanner and process modeling capabilities to more accurately simulate
    all aspects of EUV lithography.
  *We expanded our production facility for YieldStar metrology tools at the
    ASML Center of Excellence (ACE) in Taiwan to support production of up to
    150 units per year. The YieldStar is a scatterometry-based metrology tool
    that measures overlay, focus, CD and sidewall angle with one sensor.
  *Imaging of the NXE:3300B has improved to 13 nm in a single exposure, and
    it has also shown to be capable of 9 nm resolution using spacer double
    patterning technology, which has taken optical litography imaging
    resolution below 10 nm.
  *We are preparing the shipments and installations of the first two
    NXE:3300B EUV systems, which will happen in Q2 and Q3. These systems will
    be used by customers to validate EUV lithography in preparation for its
    adoption in high-volume manufacturing. We will continue to develop the
    NXE:3300 to achieve the source power and throughput required.
  *Progress towards an NXE:3300B EUV light source that is powerful enough for
    high-volume manufacturing has been encouraging: the EUV source performs at
    up to 55 watts, corresponding to a NXE:3300B throughput of 43 wafers per
    hour, a substantial improvement from the 40 Watts we reported three months
    ago.
  *We have received commitments for 7 NXE:3300B systems, in addition to the
    existing 11 system orders, and expect more with continued source power
    progress.
  *Supported by our Customer Co-Investment Program, we have completed the
    concepts of our 450 mm architecture for use in EUV and immersion versions,
    so as to deliver prototypes by 2015, compatible for a 2018 production
    ramp, if confirmed by the industry in time.

Outlook

  *For the second quarter of 2013, ASML expects net sales of about EUR 1.1
    billion, a gross margin of between 41 and 42 percent, R&D costs of EUR 187
    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.
  *ASML reiterates expectation for full-year 2013 sales at a level similar to
    that of 2012
  *We continue to expect the previously announced acquisition of Cymer to
    close in the first half, following the recent clearance by the Antitrust
    Division of the United States Department of Justice and other regulators
    as well as the approval of the merger agreement by the Cymer shareholders.
    Competition authorities in South Korea and Japan are the two remaining
    jurisdictions considering the merger.

ASML leadership succession within the Board of Management

ASML’s Supervisory Board is pleased to announce it has decided upon the new
leadership of the company, as the contract of Eric Meurice, President and
Chief Executive Officer, ends next year. As of 1 July 2013, ASML’s leadership
will be comprised as follows:

  *Peter Wennink will be President and Chief Executive Officer.
  *Martin van den Brink will be President and Chief Technology Officer.
  *Frits van Hout and Frederic Schneider-Maunoury will continue as Executive
    Vice Presidents in the Board of Management.
  *Eric Meurice will be Chairman of ASML Holding and act as adviser to the
    new leadership and the Supervisory Board until the end of his contract on
    31 March 2014, ensuring a smooth and comprehensive transition of critical
    tasks and processes, customer contacts and relations with strategic
    suppliers. Eric Meurice took office as CEO and President on 1 October 2004
    and is currently on his third term.
  *Peter Wennink will act as interim Chief Financial Officer until a
    successor has been appointed.

“Following a thorough and diligent process where internal and external
succession were considered, the Supervisory Board is pleased to announce a
leadership succession from within the company to ensure continuity and a
smooth transition which were deemed a priority. Under Eric’s leadership our
company has doubled sales and the number of employees, while profitability,
share price and market position have improved strongly. He has also provided
the framework for ASML’s further growth and knowledge creation. On behalf of
all ASML stakeholders I thank him for his direction, focus and dedication,”
said Supervisory Board Chairman Arthur van der Poel.

Peter Wennink joined ASML as Executive Vice President, Chief Financial Officer
and member of the Board of Management of ASML in 1999. Prior to his employment
with ASML, he worked as a partner at Deloitte Accountants, specializing in the
high technology industry with an emphasis on the semiconductor equipment
industry. His accomplishments at ASML include the company’s strong track
record of financial flexibility and resilience in a volatile semiconductor
market, thus enabling ASML’s investments for technology leadership.

Martin van den Brink joined ASML when the company was founded in early 1984
and held several positions in engineering. As Vice President Technology since
1995 and Executive Vice President and member of the Board of Management since
1999 - currently as Chief Product & Technology Officer - he has led ASML’s
product and technology development to breakthrough innovations such as the
Twinscan platform, immersion lithography, and more recently the new family of
EUV technologies, taking ASML to its current position of world market leader.

New share buyback program

In addition to the previously announced proposed dividend of 0.53 euros per
share, ASML today announces its intention to purchase up to an amount of EUR
1.0 billion of its own shares within the 2013-2014 timeframe, starting 18
April 2013.

Given ASML's strong financial position and operating cash flow prospects, ASML
intends to continue to return excess cash to shareholders through increasing
dividends and share buy back programs, thereby supporting its shareholders in
their continued investment in the company.

The program will be executed within the limitations of the applicable laws and
regulations, of the existing authority granted by the Annual General Meeting
of Shareholders (AGM) on April 25, 2012 and, if granted, of the authority
proposed to future AGMs. Any shares repurchased under the program are intended
to be cancelled.

All transactions under this program are published on ASML’s website
(www.asml.com/investors) on a weekly basis. The share buyback programs may be
suspended, modified or discontinued at any time.

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 8,625 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

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 20 794 8504 and the US
+1 480 629 9692 (US participants will have to quote the following confirmation
code when dialing into the conference: 4611668). 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

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 and the accounting of income taxes.
ASML’s quarterly IFRS consolidated statement of profit or loss, 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 31 March, 2013, the
related consolidated statements of operations and consolidated statements of
cash flows for the quarter ended 31 March, 2013 as presented in this press
release are unaudited.

Regulated Information

This press release, the US GAAP consolidated financial statements and the IFRS
consolidated financial statements 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, realization of
systems backlog, IC unit demand, financial results, average selling price,
gross margin and expenses, dividend policy and intention to repurchase shares
and resignations and appointments of executive officers. 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, our
ability to successfully complete the Cymer transaction, including the ability
to obtain regulatory approval for the merger, the satisfaction of other
conditions to the closing of the merger and the possibility that the length of
time necessary to consummate the merger may be longer than anticipated, 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.

                                                                             
ASML - Summary U.S. GAAP Consolidated
Statements of Operations ^1,2
                                                             
                                                   Three months ended,
                                                   Mar 31,         Apr 1,
                                                   2013            2012
(in millions EUR, except per share data)                    
                                                                             
Net system sales                                   676.9           1,050.0
Net service and field option sales              215.2       201.9   
Total net sales                                    892.1           1,251.9
                                                                             
Total cost of sales                             (551.4  )    (728.3  )
Gross profit                                       340.7           523.6
                                                                             
Other income                                       14.2            -
Research and development costs                     (184.8  )       (145.3  )
Selling, general and administrative costs       (62.6   )    (55.4   )
Income from operations                             107.5           322.9
                                                                             
Interest income (expense), net                  (3.3    )    0.6     
Income before income taxes                         104.2           323.5
                                                                             
Benefit from (provision for) income taxes       (8.0    )    (41.5   )
Net income                                         96.2            282.0
                                                                             
                                                                             
Basic net income per ordinary share                0.24            0.68
Diluted net income per ordinary share       (3 )   0.23            0.68
                                                                             
Weighted average number of ordinary shares used in computing per share
amounts (in millions):
Basic                                              407.5           411.8
Diluted                                     (3 )   410.6           415.0
                                                                             
                                                                             
                                                                             
                                                                             
ASML - Ratios and Other Data ^1,2
                                                                             
                                                   Three months ended,
                                                   Mar 31,         Apr 1,
                                                   2013            2012
(in millions EUR, except otherwise                          
indicated)
                                                                             
Gross profit as a percentage of net sales          38.2            41.8
Income from operations as a percentage of          12.1            25.8
net sales
Net income as a percentage of net sales            10.8            22.5
Income taxes as a percentage of income             7.6             12.8
before income taxes
Shareholders’ equity as a percentage of            54.8            48.8
total assets
Sales of systems (in units)                        29              52
Average selling price of system sales              23.3            20.2
(EUR millions)
Value of systems backlog excluding EUV             1,266           1,598
(EUR millions)
Systems backlog excluding EUV (in units)           42              56
Average selling price of systems backlog           30.1            28.5
excluding EUV (EUR millions)
Value of booked systems excluding EUV              715             865
(EUR millions)
Net bookings excluding EUV (in units)              25              36
Average selling price of booked systems            28.6            24.0
excluding EUV (EUR millions)
Number of payroll employees in FTEs                8,625           7,986
Number of temporary employees in FTEs              2,249           1,833
                                                                             
                                                                             
                                                                             
                                                                             
ASML - Summary U.S. GAAP Consolidated Balance Sheets ^1,2
                                                                             
                                                   Mar 31,         Dec 31,
                                                   2013            2012
(in millions EUR)
                                                                             
ASSETS
Cash and cash equivalents                          1,780.1         1,767.6
Short-term investments                             840.0           930.0
Accounts receivable, net                           689.8           605.3
Finance receivables, net                           300.8           265.2
Current tax assets                                 64.8            57.1
Inventories, net                                   2,005.8         1,857.0
Deferred tax assets                                105.1           103.7
Other assets                                    278.6       246.0   
Total current assets                               6,065.0         5,831.9
                                                                             
Finance receivables, net                           17.4            38.6
Deferred tax assets                                40.3            39.4
Other assets                                       312.7           311.6
Goodwill                                           153.2           149.2
Other intangible assets, net                       12.6            9.9
Property, plant and equipment, net              1,012.3     1,029.9 
Total non-current assets                           1,548.5         1,578.6
                                                                             
Total assets                                       7,613.5         7,410.5
                                                                             
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total current liabilities                          2,346.4         2,086.3
                                                                             
Long-term debt                                     746.6           755.9
Deferred and other tax liabilities                 92.1            88.3
Provisions                                         6.6             8.0
Accrued and other liabilities                   249.7       405.1   
Total non-current liabilities                      1,095.0         1,257.3
                                                           
Total liabilities                                  3,441.4         3,343.6
                                                                             
Total shareholders’ equity                      4,172.1     4,066.9 
Total liabilities and shareholders’                7,613.5         7,410.5
equity
                                                                             
                                                                             
                                                                             
                                                                             
ASML - Summary U.S. GAAP Consolidated
Statements of Cash Flows ^1,2
                                                                             
                                                   Three months ended,
                                                   Mar 31,         Apr 1,
                                                   2013            2012
(in millions EUR)                                           
                                                                             
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                         96.2            282.0
                                                                             
Adjustments to reconcile net income to
net cash flows from operating activities:
Depreciation and amortization                      44.5            49.6
Impairment                                         0.1             -
Loss on disposal of property, plant and            0.1             0.3
equipment
Share-based payments                               5.7             4.4
Allowance for doubtful receivables                 0.3             0.2
Allowance for obsolete inventory                   30.4            23.6
Deferred income taxes                              0.3             21.6
Changes in assets and liabilities               (233.9  )    13.9    
Net cash provided by (used in) operating           (56.3   )       395.6
activities
                                                                             
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment          (27.3   )       (47.2   )
Purchase of intangible assets                      (4.0    )       (3.3    )
Purchase of available for sale securities          (350.0  )       -
Maturity of available for sale securities          440.0           -
Acquisition of subsidiaries (net of cash        -           -       
acquired)
Net cash provided by (used in) investing           58.7            (50.5   )
activities
                                                                             
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid                                      -               -
Purchase of shares                                 -               (135.7  )
Net proceeds from issuance of shares               10.4            16.3
Capital repayment                                  -               -
Repayment of debt                                  (0.8    )       (0.7    )
Tax benefit from share-based payments           -           0.1     
Net cash provided by (used in) financing           9.6             (120.0  )
activities
                                                           
Net cash flows                                     12.0            225.1
                                                                             
Effect of changes in exchange rates on          0.5         (3.5    )
cash
Net increase (decrease) in cash and cash           12.5            221.6
equivalents
                                                                             

               
ASML -
Quarterly
Summary U.S.
GAAP
Consolidated
Statements of
Operations
^1,2
                                                                  
                    Three months ended,
                                                                       
                    Mar 31,     Dec 31,      Sep 30,      Jul 1,       Apr 1,
                    2013        2012         2012         2012         2012
(in millions
EUR, except                                                   
per share
data)
                                                                       
Net system          676.9       766.5        1,000.3      984.8        1,050.0
sales
Net service
and field          215.2     256.6      228.5      242.9      201.9   
option sales
Total net           892.1       1,023.1      1,228.8      1,227.7      1,251.9
sales
                                                                       
Total cost of      (551.4  )  (602.9   )  (697.8   )  (697.3   )  (728.3  )
sales
Gross profit        340.7       420.2        531.0        530.4        523.6
                                                                       
Other income        14.2        -            -            -            -
Research and
development         (184.8  )   (155.4   )   (143.8   )   (144.6   )   (145.3  )
costs
Selling,
general and        (62.6   )  (79.5    )  (69.7    )  (54.7    )  (55.4   )
administrative
costs
Income from         107.5       185.3        317.5        331.1        322.9
operations
                                                                       
Interest
income             (3.3    )  (3.4     )  (2.5     )  (0.9     )  0.6     
(expense), net
Income before       104.2       181.9        315.0        330.2        323.5
income taxes
                                                                       
Benefit from
(provision         (8.0    )  115.8      (40.3    )  (38.3    )  (41.5   )
for) income
taxes
Net income          96.2        297.7        274.7        291.9        282.0
                                                                       
                                                                       
Basic net
income per          0.24        0.66         0.65         0.71         0.68
ordinary share
Diluted net
income per     (3 ) 0.23        0.65         0.65         0.71         0.68
ordinary share
                                                                       
Weighted average number of ordinary shares used in computing per share amounts
(in millions):
Basic               407.5       452.5        422.5        409.5        411.8
Diluted        (3 ) 410.6       455.4        425.7        412.7        415.0
                                                                       
                                                                       
                                                                       
               
ASML - Quarterly Summary Ratios and other data ^1,2
                                                                       
                    Three months ended,
                                                                       
                    Mar 31,     Dec 31,      Sep 30,      Jul 1,       Apr 1,
                    2013        2012         2012         2012         2012
(in millions
EUR, except                                                   
otherwise
indicated)
                                                                       
Gross profit
as a                38.2        41.1         43.2         43.2         41.8
percentage of
net sales
Income from
operations as       12.1        18.1         25.8         27.0         25.8
a percentage
of net sales
Net income as
a percentage        10.8        29.1         22.4         23.8         22.5
of net sales
Income taxes
as a
percentage of       7.6         (63.7    )   12.8         11.6         12.8
income before
income taxes
Shareholders’
equity as a         54.8        54.9         65.2         49.8         48.8
percentage of
total assets
Sales of
systems (in         29          34           40           44           52
units)
Average
selling price
of system           23.3        22.5         25.0         22.4         20.2
sales (EUR
millions)
Value of
systems
backlog             1,266       1,214        1,340        1,503        1,598
excluding EUV
(EUR millions)
Systems
backlog             42          46           48           55           56
excluding EUV
(in units)
Average
selling price
of systems          30.1        26.4         27.9         27.3         28.5
backlog
excluding EUV
(EUR millions)
Value of
booked systems      715         667          831          949          865
excluding EUV
(EUR millions)
Net bookings
excluding EUV       25          32           33           43           36
(in units)
Average
selling price
of booked           28.6        20.9         25.2         22.1         24.0
systems
excluding EUV
(EUR millions)
Number of
payroll             8,625       8,497        8,203        8,010        7,986
employees in
FTEs
Number of
temporary           2,249       2,139        2,027        1,860        1,833
employees in
FTEs
               
               
               
               
ASML - Quarterly Summary U.S. GAAP Consolidated Balance Sheets ^1,2
                                                                       
                    Mar 31,     Dec 31,      Sep 30,      Jul 1,       Apr 1,
                    2013        2012         2012         2012         2012
(in millions                                                  
EUR)
                                                                       
ASSETS
Cash and cash       1,780.1     1,767.6      5,118.8      1,851.8      2,953.4
equivalents
Short-term          840.0       930.0        1,040.0      850.0        -
investments
Accounts
receivable,         689.8       605.3        326.8        631.7        761.2
net
Finance
receivables,        300.8       265.2        221.6        122.3        78.8
net
Current tax         64.8        57.1         36.6         23.6         15.6
assets
Inventories,        2,005.8     1,857.0      1,920.0      1,721.2      1,607.6
net
Deferred tax        105.1       103.7        111.0        123.4        117.3
assets
Other assets       278.6     246.0      235.0      235.2      233.2   
Total current       6,065.0     5,831.9      9,009.8      5,559.2      5,767.1
assets
                                                                       
Finance
receivables,        17.4        38.6         44.7         -            -
net
Deferred tax        40.3        39.4         38.3         40.1         38.0
assets
Other assets        312.7       311.6        304.9        290.5        318.0
Goodwill            153.2       149.2        145.9        150.2        141.5
Other
intangible          12.6        9.9          7.2          8.6          10.1
assets, net
Property,
plant and          1,012.3   1,029.9    1,036.9    1,169.2    1,124.6 
equipment, net
Total
non-current         1,548.5     1,578.6      1,577.9      1,658.6      1,632.2
assets
                                                                       
Total assets        7,613.5     7,410.5      10,587.7     7,217.8      7,399.3
                                                                       
LIABILITIES
AND
SHAREHOLDERS’
EQUITY
Total current       2,346.4     2,086.3      2,301.8      2,075.0      2,091.6
liabilities
                                                                       
Long-term debt      746.6       755.9        747.3        741.8        736.8
Deferred and
other tax           92.1        88.3         215.2        205.1        193.8
liabilities
Provisions          6.6         8.0          8.7          9.5          9.4
Accrued and
other              249.7     405.1      409.0      590.9      755.7   
liabilities
Total
non-current         1,095.0     1,257.3      1,380.2      1,547.3      1,695.7
liabilities
                                                             
Total               3,441.4     3,343.6      3,682.0      3,622.3      3,787.3
liabilities
                                                                       
Total
shareholders’      4,172.1   4,066.9    6,905.7    3,595.5    3,612.0 
equity
Total
liabilities
and                 7,613.5     7,410.5      10,587.7     7,217.8      7,399.3
shareholders’
equity
                                                                       
                                                                       
                                                                       
                                                                       
ASML - Quarterly Summary U.S. GAAP Consolidated Statements of Cash Flows ^1,2
                                                                       
                    Three months ended,
                                                                       
                    Mar 31,     Dec 31,      Sep 30,      Jul 1,       Apr 1,
                    2013        2012         2012         2012         2012
(in millions                                                  
EUR)
                                                                       
CASH FLOWS
FROM OPERATING
ACTIVITIES
Net income          96.2        297.7        274.7        291.9        282.0
                                                                       
Adjustments to
reconcile net
income to net
cash flows
from operating
activities:
Depreciation
and                 44.5        43.5         36.7         56.8         49.6
amortization
Impairment          0.1         0.5          1.7          1.1          -
Loss on
disposal of
property,           0.1         0.2          0.5          1.2          0.3
plant and
equipment
Share-based         5.7         5.0          4.9          4.4          4.4
payments
Allowance for
doubtful            0.3         (0.3     )   0.5          0.1          0.2
receivables
Allowance for
obsolete            30.4        22.9         31.0         53.4         23.6
inventory
Deferred            0.3         (120.3   )   25.6         0.7          21.6
income taxes
Changes in
assets and         (233.9  )  (504.7   )  113.7      (335.5   )  13.9    
liabilities
Net cash
provided by
(used in)           (56.3   )   (255.5   )   489.3        74.1         395.6
operating
activities
                                                                       
CASH FLOWS
FROM INVESTING
ACTIVITIES
Purchase of
property,           (27.3   )   (35.7    )   (50.2    )   (38.8    )   (47.2   )
plant and
equipment
Purchase of
intangible          (4.0    )   (4.3     )   -            -            (3.3    )
assets
Purchase of
available for       (350.0  )   (90.0    )   (440.0   )   (850.0   )   -
sale
securities
Maturity of
available for       440.0       200.0        250.0        -            -
sale
securities
Acquisition of
subsidiaries       -         (10.3    )  -          -          -       
(net of cash
acquired)
Net cash
provided by
(used in)           58.7        59.7         (240.2   )   (888.8   )   (50.5   )
investing
activities
                                                                       
CASH FLOWS
FROM FINANCING
ACTIVITIES
Dividend paid       -           -            -            (188.9   )   -
Purchase of         -           (265.7   )   (25.2    )   (108.8   )   (135.7  )
shares
Net proceeds
from issuance       10.4        840.7        3,046.5      4.2          16.3
of shares
Capital             -           (3,728.3 )   -            -            -
repayment
Repayment of        (0.8    )   (0.8     )   (0.7     )   (0.7     )   (0.7    )
debt
Tax benefit
from               -         0.6        1.5        -          0.1     
share-based
payments
Net cash
provided by
(used in)           9.6         (3,153.5 )   3,022.1      (294.2   )   (120.0  )
financing
activities
                                                             
Net cash flows      12.0        (3,349.3 )   3,271.2      (1,108.9 )   225.1
                                                                       
Effect of
changes in         0.5       (1.9     )  (4.2     )  7.3        (3.5    )
exchange rates
on cash
Net increase
(decrease) in       12.5        (3,351.2 )   3,267.0      (1,101.6 )   221.6
cash and cash
equivalents
                                                                               

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

Basis of Presentation

The accompanying consolidated financial statements are stated in millions of
euros (‘EUR’) unless otherwise indicated. 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.

Use of estimates

The preparation of our 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.

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 (referred to as “ASML”). All
intercompany profits, balances and transactions have been eliminated in the
consolidation. 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.

Revenue recognition

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 our 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 we are unable to establish relative
selling price using VSOE or TPE, ASML 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

Our sales are predominately denominated in euros. Exceptions may occur on a
customer by customer basis. Our cost of sales and other expenses are mainly
dominated in euros, to a certain extent in U.S. dollar and Japanese yen and to
a limited extent in other currencies. Therefore, we are exposed to foreign
currency exchange risk.

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

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

                                                                
Net income                 Three months ended,
                           Mar 31,  Apr 1,
                           2013      2012
(in millions EUR)                 
Net income based on U.S.   96.2      282.0
GAAP
Development expenditures   58.0      35.1
(see Note 1)
Share-based payments       0.8       -
(see Note 2)
Income taxes (see Note     0.7       1.0
3)
Reversal of write-downs   -        (0.7    )
(see Note 4)
Net income based on IFRS   155.7     317.4
                                                                             
                                                                             
Shareholders’ equity       Mar 31,   Dec 31,     Sep 30,   Jul 1,    Apr 1,
                           2013      2012        2012      2012      2012
(in millions EUR)                                           
Shareholders’ equity       4,172.1   4,066.9     6,905.7   3,595.5   3,612.0
based on U.S. GAAP
Development expenditures   456.1     396.8       356.6     308.7     267.3
(see Note 1)
Share-based payments       4.2       4.1         4.1       4.0       3.7
(see Note 2)
Income taxes (see Note     32.1      30.4        35.0      36.4      31.4
3)
Reversal of write-downs   -        -         14.0     14.4     6.5
(see Note 4)
Equity based on IFRS       4,664.5   4,498.2     7,315.4   3,959.0   3,920.9
                                                                             

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

Note 1 Development expenditures

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.

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.

Note 2 Share-based Payments

Under U.S. GAAP, 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.

Under IFRS, ASML applies IFRS 2, “Share-based Payments”. 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.

Note 3 Income taxes

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.

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.

Note 4 Reversal of write-downs

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.

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.

“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, realization of
systems backlog, IC unit demand, financial results, average selling price,
gross margin and expenses, dividend policy and intention to repurchase shares.
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, our ability to successfully complete the Cymer transaction,
including the ability to obtain regulatory approval for the merger, the
satisfaction of other conditions to the closing of the merger and the
possibility that the length of time necessary to consummate the merger may be
longer than anticipated, 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.

^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 issuance of
shares under ASML share plans for periods in which exercises or issuances
would have a dilutive effect. The calculation of diluted net income per
ordinary share does not assume exercise of such options or issuance of shares
when such exercises or issuance would be anti-dilutive.

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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