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Form 6-K ASML HOLDING NV For: Oct 14

October 14, 2015 6:30 AM EDT

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________

FORM 6-K

REPORT OF A FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For October 14, 2015

______________________

ASML Holding N.V.

De Run 6501
5504 DR Veldhoven
The Netherlands
(Address of principal executive offices)
______________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes ¨ No x

If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

EXHIBITS 99.1, 99.3, AND 99.4 TO THIS REPORT ON FORM 6-K ARE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-116337), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-126340), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-136362), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-141125), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-142254), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-144356), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-147128), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-153277), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-162439), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-170034), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-188938), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-192951) AND THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-203390) OF ASML HOLDING N.V. AND IN THE OUTSTANDING PROSPECTUSES CONTAINED IN SUCH REGISTRATION STATEMENTS.






Exhibits                                

99.1
“ASML reports Q3 results as guided and remains on track for record 2015 sales. Two new lithography scanners launched in the last quarter”, press release dated October 14, 2015
99.2
“ASML reports Q3 results as guided and remains on track for record 2015 sales. Two new lithography scanners launched in the last quarter”, presentation dated October 14, 2015
99.3
Summary U.S. GAAP Consolidated Financial Statements
99.4    Summary IFRS Consolidated Financial Statements









SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ASML HOLDING N.V. (Registrant)

Date: October 14, 2015    By:    /s/ Peter T.F.M. Wennink
Peter T.F.M. Wennink
Chief Executive Officer




Exhibit 99.1

Media Relations Contacts
Lucas van Grinsven - Corporate Communications - +31 6 101 99 532 - Veldhoven, the Netherlands
Niclas Mika - Corporate Communications - +31 6 201 528 63 - Veldhoven, the Netherlands

Investor Relations Contacts
Craig DeYoung - Investor Relations - +1 480 696 2762 - Chandler, Arizona, USA
Marcel Kemp - Investor Relations - +31 40 268 6494 - Veldhoven, the Netherlands


ASML reports Q3 results as guided and remains on track for record 2015 sales
Two new lithography scanners launched in the last quarter


VELDHOVEN, the Netherlands, October 14, 2015 - ASML Holding N.V. (ASML) today publishes its 2015 third-quarter results.

Q3 net sales of EUR 1.55 billion, gross margin 45.4 percent, in line with guidance
ASML guides Q4 2015 net sales at approximately € 1.4 billion and a gross margin of around 45%
Both the TWINSCAN NXT immersion lithography platform and the NXE Extreme Ultraviolet (EUV) platform upgraded for next-generation chip production

(Figures in millions of euros unless otherwise indicated)
Q2 2015
Q3 2015
Net sales
1,654
1,549
...of which service and field option sales
520
574
 
 
 
Other income (Co-Investment Program)
21
21
 
 
 
New systems sold (units)
34
39
Used systems sold (units)
7
5
Average Selling Price (ASP) of net system sales
27.7
22.2
 
 
 
Net bookings*
1,523
904
Systems backlog*
3,015
2,880
 
 
 
Gross profit
754
703
Gross margin (%)
45.6
45.4
 
 
 
Net income
370
322
EPS (basic; in euros)
0.86
0.75
 
 
 
End-quarter cash and cash equivalents and short-term investments
2,520
2,681
*) For the adjusted definition of our net bookings and systems backlog see footnote 4 of our US GAAP Consolidated Financial Statements.
A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com

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CEO Statement
"We reported third-quarter sales and gross margin that were in line with our guidance, with a strong showing of the memory segment at more than 50 percent of system sales as well as record service and field option sales. ASML continues to support our customers' technology roadmaps through product innovations as evidenced by our new NXT:1980 immersion system which provides around 30 percent overlay and 10 percent throughput improvement. These systems started shipping in Q3 with the ramp starting this quarter," ASML President and Chief Executive Officer Peter Wennink said.

"In Extreme Ultraviolet (EUV) lithography, we continue to make progress towards our 2015 productivity and availability targets. We have proven the capability both to expose 1,000 wafers per day and, in a manufacturing readiness test, to expose 15,000 wafers in four weeks. We have also achieved a four-week average availability of more than 70 percent at multiple customer sites. The first shipment of our fourth-generation EUV lithography system, the NXE:3350B, is in progress, with two more expected to ship in Q4.

"Compared to our expectation of three months ago, foundry customers are slightly more cautious with their investment plans. As a result, we expect Q4 sales below the Q3 level, but we remain on track for a record year in terms of sales. Despite slightly lower deliveries to our logic customers in Q3 and Q4, this segment clearly remains committed to ramp the 10 nanometer node, which we expect to start in Q2 2016. Currently, our memory customers indicate that their system demand will continue at a healthy level throughout the first half of 2016, albeit somewhat below the Q3 level."

Q3 Product Highlights
Shipment of the first two TWINSCAN NXT:1980 systems. Demonstrating a more than 30 percent improvement in overlay to 1.2 nanometer (nm) and a 40 percent improvement in focus uniformity to less than 10 nm, the NXT:1980 supports increasingly demanding multiple-patterning performance requirements while boosting throughput by 10 percent to 275 wafers per hour.
In Holistic Lithography, leading customers are using our full suite of process window enhancement solutions to optimize both scanner settings and full-chip mask patterns in immersion multiple patterning for the best yield in 1x nm node production. They have also evaluated our NXE source-mask optimization software for EUV imaging of critical layers in development of the next generation devices. It has demonstrated

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substantial improvement in process window, CD uniformity and pattern placement for both 7 and 5 nm node logic and 1x nm node memory.
The first NXE:3350B EUV system is being shipped. The system achieves an overlay of 1.0 nanometers, a 50 percent improvement over the NXE:3300B, and also features a lens with a higher transmission, which means it generates higher throughput from a given EUV power source.

Outlook
For the fourth-quarter of 2015, ASML expects net sales at approximately € 1.4 billion, a gross margin of around 45%, R&D costs of about € 270 million, other income of about € 20 million -- which consists of contributions from participants of the Customer Co-Investment Program --, SG&A costs of about € 90 million and an effective annualized tax rate of around 11%.

Update Share Buyback Program
As part of ASML's policy to return excess cash to shareholders through dividend and regularly timed share buybacks, ASML in January 2015 announced its intention to purchase up to 3.3 million shares in 2015-2016 to cover employee stock and stock option plans (ESOPs). In addition, ASML announced its intention to purchase up to EUR 750 million of shares in 2015-2016 under this program, which it intends to cancel upon repurchase.
On July 14, 2015, ASML completed the purchase of 3.3 million shares for ESOPs for a total amount of EUR 314.9 million. In addition, from July 16, 2015 to September 27, 2015, ASML has acquired 1.3 million shares which will be cancelled for a total consideration of EUR 111.2 million. In total ASML has acquired 4.6 million shares under the program for a total consideration of EUR 426.1 million.
The share buyback program may be suspended, modified or discontinued at any time. All transactions under this program will be published on ASML's website (www.asml.com/investors).

About ASML
ASML makes possible affordable microelectronics that improve the quality of life. ASML invents and develops advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML's guiding principle is continuing Moore's Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. Our success is based on three pillars: technology leadership combined with customer and supplier intimacy, highly efficient processes and entrepreneurial people. We

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are a multinational company with over 70 locations in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 14,000 people on payroll and flexible contracts (expressed in full time equivalents). Our company is an inspiring place where employees work, meet, learn and share. ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. More information about ASML, our products and technology, and career opportunities is available on: www.asml.com

Investor and Media Conference Call
A conference call for investors and media will be hosted by CEO Peter Wennink and CFO Wolfgang Nickl at 15:00 PM Central European Time / 09:00 AM U.S. Eastern time. To register for the call and receive dial-in information, go to www.asml.com/qresultscall. Listen-only access is also available via 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 principles generally accepted in the United States of America. 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 (‘IFRS’) 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 September 27, 2015, the related consolidated statements of operations and consolidated statements of cash flows for the quarter ended September 27, 2015 as presented in this press release are unaudited.

Regulated Information
This press release constitutes regulated information within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).


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Forward Looking Statements
This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expectations for the fourth quarter, expected customer demand in specified market segments including memory, logic and foundry, expected trends, expected liquidity and capital structure, expected levels of service sales, systems backlog, expected financial results, including expected sales, other income, gross margin, earnings per share and R&D and SG&A expenses and effective tax rate, annual revenue opportunity for ASML, productivity of our tools and systems performance, TWINSCAN and EUV system performance (such as endurance tests), expected industry trends, roadmaps and growth of the semiconductor industry, statements with respect to expected system shipments, including the number of EUV systems expected to be shipped and timing of shipments and other EUV targets (including availability, productivity and shipments) and roadmaps, the expected continuation of Moore's law, expected annual revenue growth and goals for holistic lithography, intention to return excess cash to shareholders, and statements about our dividend policy and intention to repurchase shares. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words.
These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, 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, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development, 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, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, 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. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.


5

ASML reports Q3 results as guided and remains on track for record 2015 sales Two new lithography scanners launched ASML 2015 Third Quarter Results Veldhoven, the Netherlands October 14, 2015 Public


 
Public Slide 2 October 14, 2015 This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expectations for the fourth quarter, expected customer demand in specified market segments including memory, logic and foundry, expected trends, expected liquidity and capital structure, expected levels of service sales, systems backlog, expected financial results, including expected sales, other income, gross margin, earnings per share and R&D and SG&A expenses and effective tax rate, annual revenue opportunity for ASML, productivity of our tools and systems performance, TWINSCAN and EUV system performance (such as endurance tests), expected industry trends, roadmaps and growth of the semiconductor industry, statements with respect to expected system shipments, including the number of EUV systems expected to be shipped and timing of shipments and other EUV targets (including availability, productivity and shipments) and roadmaps, the expected continuation of Moore's law, expected annual revenue growth and goals for holistic lithography, intention to return excess cash to shareholders, and statements about our dividend policy and intention to repurchase shares. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, 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, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development, 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, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, 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. These forward- looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward looking statements


 
Public Slide 3 October 14, 2015 Agenda • Investor key messages • Business highlights • Business environment • Outlook • Technology highlights • Financial statements


 
Public Slide 4 October 14, 2015 Investor key messages


 
Public Slide 5 October 14, 2015 Investor key messages • Shrink is the key industry driver supporting innovation and providing long term industry growth • Moore’s Law will continue and be affordable • Lithography enables affordable shrink and therefore delivers compelling value for our customers • ASML’s strategy of large R&D investments in lithography product roadmaps supports future industry needs • DUV product improvement roadmaps and Holistic Litho enable multi-pass immersion patterning today, with Holistic Litho supporting EUV in future. These highly differentiated products provide unique value drivers for us and our customers • EUV faces normal new technology introduction challenges but its adoption is now a matter of WHEN not IF. EUV will continue to enable Moore’s Law and will drive long term value for ASML • ASML models an annual revenue opportunity of €10 billion by 2020 and given the significant leverage in our financial model this will allow a potential tripling of EPS by the end of this decade, compared to calendar year 2014, thereby creating significant value for all stakeholders • We expect to continue to return excess cash to our shareholders through dividends that are stable or growing and regularly timed share buybacks in line with our policy


 
Public Slide 6 October 14, 2015 Business highlights


 
Public Slide 7 October 14, 2015 Q3 results • Q3 sales and gross margin were in line with our guidance, with a strong showing of the memory segment at more than 50% of system sales as well as record service and field option sales • Net sales of € 1,549 million, 44 litho systems sold, valued at € 975 million, net service and field option sales at € 574 million • Average selling price of € 22.2 million per system • Gross margin of 45.4% • Operating margin of 24.0% • Net bookings of € 904 million • Backlog at € 2,880 million Numbers have been rounded for readers’ convenience


 
Public Slide 8 October 14, 2015 Net system sales breakdown in value Numbers have been rounded for readers’ convenience Technology ArF Immersion 68% ArF Dry 3% KrF 27% I-line 2% Region (ship to location) USA 15% Korea 28% Taiwan 30% China 14% Japan 11% Rest of Asia 2% End-Use Memory 56% Foundry 32% IDM 12% Q3’15 total value € 975 million Sales in Units EUV ArF i ArFdry KrF I-Line — 14 2 24 4 Q2’15 total value € 1,134 million EUV 6% ArF Immersion 79% ArF Dry 1% KrF 12% I-line 2% Memory 47% Foundry 40%IDM 13% USA 22% Korea 27% Taiwan 31% China 3% Japan 13% Europe 4% EUV ArF i ArFdry KrF I-Line 1 19 2 14 5


 
Public Slide 9 October 14, 2015 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 N et Sa le s 2010 2011 2012 2013 2014 2015 742 1,452 1,252 892 1,397 1,650 1,069 1,529 1,228 1,187 1,644 1,6541,176 1,459 1,229 1,318 1,322 1,549 1,521 4,508 1,211 5,651 1,023 4,732 1,848 5,245 1,494 Total net sales million € by quarter Numbers have been rounded for readers’ convenience 4,853 YTD Q4 Q3 Q2 Q1 5,856


 
Public Slide 10 October 14, 2015 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 N et Sa le s 2010 2011 2012 2013 2014 2015 2,585 2,184 935 1,489 2,225 1,730 366 844 588 440 831 408 944 1,856 2,279 2,064 1,186 1,218 613 4,508 767 5,651 930 4,732 1,252 5,245 1,614 5,856 1,497 Total net sales million € by End-use Numbers have been rounded for readers’ convenience 4,853 YTD Service & Options Foundry IDM Memory


 
Public Slide 11 October 14, 2015 Bookings activity by sector As of Q2 2015, our systems backlog and net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting as of the NXE:3350B) Numbers have been rounded for readers’ convenience Q3’15 total value € 904 million New systems Used systems Units 32 3 Value M€ 899 5 New systems Used systems Units 41 5 Value M€ 1,494 29 Q2’15 total value € 1,523 million Memory 52% Foundry 38% IDM 10% Memory 38% Foundry 23% IDM 39%


 
Public Slide 12 October 14, 2015 System backlog in value Backlog definition see slide 11 Numbers have been rounded for readers’ convenience Technology EUV 26% ArF Immersion 59% ArF Dry 3% KrF 11% I-line 1% Region (ship to location) USA 39% Korea 36% Taiwan 16% China 3% Japan 4% Europe 2% End-Use Memory 33% Foundry 29% IDM 38% Q3’15 total value € 2,880 million Q2’15 total value € 3,015 million EUV 24% ArF Immersion 58% ArF Dry 3% KrF 14% I-line 1% Memory 37% Foundry 26% IDM 37% USA 41% Korea 30% Taiwan 16% China 6% Japan 6% Rest of Asia 1% New systems Used systems Units 61 11 Value M€ 2,835 45 New systems Used systems Units 68 13 Value M€ 2,946 69


 
Public Slide 13 October 14, 2015 Capital return to shareholders • ASML paid € 302 million in dividend or € 0.70 per ordinary share • Purchased € 426 million worth of shares in Q1, Q2 and Q3 as part of our 2015/2016 approx. € 1 billion share buyback program Dividend history 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 D iv id en d (e ur o) 2007 2008 2009 2010 2011 2012 2013 2014 0.25 0.20 0.20 0.40 0.46 0.53 0.61 0.70 Cumulative capital return 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 € m illi on 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend Share buyback Year paid is offset by 1 year


 
Public Slide 14 October 14, 2015 Business environment


 
Public Slide 15 October 14, 2015 • 2 DRAM fabs continue to ramp capacity • 2x nm DRAM node progressing and 1x nm node development started • Limited NAND litho tool demand awaiting completion of new 3D NAND fabs • 2 new foundry fabs accepting equipment in 2016 • Continued demand for litho tools for several nodes • Modest tool shipments continue for 28 nm and 16/14 nm nodes • Shipments for development / pilot production of next nodes in progress • Shipments for 10 nm volume ramp expected to start in Q2 2016 • High demand for service and field options continues to be driven by Holistic litho, growing installed base and upgrade products which allows for improved process control and capital efficiency Business environment Service & field options Memory Logic


 
Public Slide 16 October 14, 2015 Outlook


 
Public Slide 17 October 14, 2015 Outlook • Q4 net sales approximately € 1.4 billion • Gross margin around 45% • R&D costs of about € 270 million • SG&A costs of about € 90 million • Other income (Customer Co-Investment Program) of about € 20 million • Effective annualized tax rate for 2015 around 11% • Compared to our expectation 3 months ago, foundries are slightly more cautious with their investment plans. As a result, we expect Q4 sales below the Q3 level, but we remain on track for a record year in terms of sales • Despite slightly lower deliveries to logic in Q3 and Q4, this segment clearly remains committed to ramp the 10 nm node, which we expect to start in Q2 2016 • Memory customers indicate that their system demand will continue at healthy level throughout H1 2016, albeit somewhat below the Q3 level


 
Public Slide 18 October 14, 2015 Technology highlights


 
Public Slide 19 October 14, 2015 EUV 2015 targets and status at a glance Numbers have been rounded for readers’convenience • Capability proven: 1022 wafers exposed in 24 hours and more than 15,000 wafers in 4-week manufacturing readiness test at customer site • Comparable results achieved using same power configuration at multiple customers Productivity - Target: 1000 wafers per day • Capability proven: Several customers achieved 4-week average availability of > 70% • Worldwide average availability is lower, showing consistency needs to be improved further • First shipment of NXE:3350B in process with an additional 3 NXE:3350B systems on order with 2 shipments expected in Q4 2015 and 1 in 2016 Availability - Target: 70% NXE:3350B shipments - Target: 6


 
Public Slide 20 October 14, 2015 NXE:3350B supports 7 nm logic insertion with significantly improved overlay and resolution Numbers have been rounded for readers’convenience


 
Public Slide 21 October 14, 2015 EUV expected shipments and revenue recognition EUV shipments & revenue 2015 NXE:3300B Shipment plan 1 Revenue 1 NXE:3300B à 3350B Shipment plan 0 Revenue 0 NXE:3350B Shipment plan 3 Revenue 0 • 1 NXE:3300B shipped in Q1, revenue recognized in Q2 • Revenue recognition of the NXE 3350B depends on the terms and conditions agreed upon with customers • For the NXE:3350 that is being shipped right now we expect to recognize approx. € 60 million by mid 2016 with the remaining balance deferred to 2017


 
Public Slide 22 October 14, 2015 Good progress on EUV industrialization roadmap Current status * Includes efficiency and utilization of customers


 
Public Slide 23 October 14, 2015 Q3 product highlights EUV • First NXE:3350B is being shipped. System achieves an overlay of 1.0 nm, a 50% improvement over the NXE:3300B, and also features a lens with a higher transmission, generating higher throughput from a given EUV power source DUV • Shipment of the first 2 TWINSCAN NXT:1980 systems supporting increasingly demanding multiple patterning performance requirements Holistic litho • Leading customers are using our full suite of process window enhancement solutions to optimize both scanner settings and full-chip mask patterns in immersion multiple patterning for the best yield in 1x nm node production. They have also evaluated our NXE source-mask optimization software for EUV imaging of critical layers in development of the next generation devices. It has demonstrated substantial improvement in process window, CD uniformity and pattern placement for both 7 and 5 nm node logic and 1x nm node memory


 
Public Slide 24 October 14, 2015 Shipping NXT:1980 for volume production of next Logic and DRAM nodes NXT:1980 supports increasingly demanding multiple-patterning performance requirements • 30% improvement in overlay to 1.2 nm • 40% improvement in focus uniformity to less than 10 nm • 10% improvement in throughput to 275 wafers per hour


 
Public Slide 25 October 14, 2015 Financial statements


 
Public Slide 26 October 14, 2015 Consolidated statements of operations M€ Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net sales 1,322 1,494 1,650 1,654 1,549 Gross profit 578 657 779 754 703 Gross margin % 43.7% 44.0% 47.2% 45.6% 45.4% Other income* 20 20 21 21 21 R&D costs (260) (268) (261) (267) (267) SG&A costs (77) (79) (82) (88) (86) Income from operations 261 330 456 419 372 Operating income % 19.8% 22.1% 27.6% 25.3% 24.0% Net income 244 305 403 370 322 Net income as a % of net sales 18.5% 20.4% 24.4% 22.4% 20.8% Earnings per share (basic) € 0.56 0.70 0.93 0.86 0.75 Earnings per share (diluted) € 0.56 0.70 0.93 0.85 0.75 Litho units sold 30 35 47 41 44 ASP new litho systems 35.9 34.7 30.8 32.5 24.2 Net booking value** 1,397 1,387 1,028 1,523 904 * Customer Co-Investment Program (CCIP) ** As of Q2 2015, our systems backlog and net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting as of the NXE:3350B). This change has no impact on the comparative figures. Numbers have been rounded for readers’ convenience


 
Public Slide 27 October 14, 2015 Cash flows M€ Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net income 244 305 403 370 322 Net cash provided by (used in) operating activities 214 409 337 284 420 Net cash provided by (used in) investing activities (24) 77 124 (107) (99) Net cash provided by (used in) financing activities (161) (213) (112) (458) (133) Net increase (decrease) in cash & cash equivalents 34 275 359 (284) 186 Free cash flow* 130 281 250 205 333 * Free cash flow is defined as net cash provided by (used in) operating activities minus investments in Capex (Purchase of Property, plant and equipment and intangibles), see US GAAP Consolidated Financial Statements Numbers have been rounded for readers’ convenience


 
Public Slide 28 October 14, 2015 Balance sheets M€ Numbers have been rounded for readers’ convenience Assets Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Cash & cash equivalents and short-term investments 2,685 2,754 2,838 2,520 2,681 Net accounts receivable and finance receivables 1,336 1,304 1,510 1,589 1,593 Inventories, net 2,677 2,550 2,607 2,592 2,537 Other assets 712 835 929 871 846 Tax assets 337 232 299 264 203 Goodwill 2,265 2,358 2,611 2,569 2,574 Other intangible assets 713 724 774 751 739 Property, plant and equipment 1,372 1,447 1,523 1,519 1,533 Total assets 12,097 12,204 13,091 12,675 12,706 Liabilities and shareholders' equity Current liabilities 2,926 2,889 3,194 2,854 2,711 Non-current liabilities 1,847 1,802 1,820 1,859 1,850 Shareholders' equity 7,324 7,513 8,077 7,962 8,145 Total liabilities and shareholders' equity 12,097 12,204 13,091 12,675 12,706


 


 
Exhibit 99.3


ASML - Summary US GAAP Consolidated Statements of Operations 1,2 
 
 
Three months ended,
 
Nine months ended,
 
 
 
Sep 28,

 
Sep 27,

 
Sep 28,

 
Sep 27,

 
 
 
2014

 
2015

 
2014

 
2015

 
(in millions EUR, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net system sales
 
884.5

 
975.3

 
3,157.5

 
3,356.3

 
Net service and field option sales
 
437.7

 
573.9

 
1,204.8

 
1,496.9

 
Total net sales
 
1,322.2

 
1,549.2

 
4,362.3

 
4,853.2

 
 
 
 
 
 
 
 
 
 
 
Total cost of sales
 
(744.1
)
 
(845.7
)
 
(2,422.8
)
 
(2,617.3
)
 
Gross profit
 
578.1

 
703.5

 
1,939.5

 
2,235.9

 
 
 
 
 
 
 
 
 
 
 
Other income
 
20.3

 
20.8

 
60.8

 
62.4

 
Research and development costs
 
(260.1
)
 
(266.3
)
 
(806.1
)
 
(795.1
)
 
Selling, general and administrative costs
 
(76.9
)
 
(85.6
)
 
(241.7
)
 
(256.2
)
 
Income from operations
 
261.4

 
372.4

 
952.5

 
1,247.0

 
 
 
 
 
 
 
 
 
 
 
Interest and other, net
 
(2.0
)
 
(4.2
)
 
(6.0
)
 
(11.9
)
 
Income before income taxes
 
259.4

 
368.2

 
946.5

 
1,235.1

 
 
 
 
 
 
 
 
 
 
 
Benefit from (provision for) income taxes
 
(15.4
)
 
(45.8
)
 
(54.7
)
 
(140.3
)
 
Net income
 
244.0

 
322.4

 
891.8

 
1,094.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net income per ordinary share
 
0.56

 
0.75

 
2.04

 
2.54

 
Diluted net income per ordinary share
3 
0.56

 
0.75

 
2.02

 
2.52

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of ordinary shares used in computing per share amounts (in millions):
Basic
 
436.1

 
429.9

 
438.2

 
431.3

 
Diluted
3 
439.0

 
432.3

 
441.1

 
433.7

 

ASML - Ratios and Other Data 1,2 
 
 
Three months ended,
 
Nine months ended,
 
 
 
Sep 28,

 
Sep 27,

 
Sep 28,

 
Sep 27,

 
 
 
2014

 
2015

 
2014

 
2015

 
(in millions EUR, except otherwise indicated)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit as a percentage of net sales
 
43.7
%
 
45.4
%
 
44.5
%
 
46.1
%
 
Income from operations as a percentage of net sales
 
19.8
%
 
24.0
%
 
21.8
%
 
25.7
%
 
Net income as a percentage of net sales
 
18.5
%
 
20.8
%
 
20.4
%
 
22.6
%
 
Income taxes as a percentage of income before income taxes
 
5.9
%
 
12.4
%
 
5.8
%
 
11.4
%
 
Shareholders’ equity as a percentage of total assets
 
60.5
%
 
64.1
%
 
60.5
%
 
64.1
%
 
Sales of systems (in units)
 
30

 
44

 
101

 
132

 
Average selling price of system sales (EUR millions)
 
29.5

 
22.2

 
31.3

 
25.4

 
Value of systems backlog (EUR millions)
 
2,406

 
2,880

4 
2,406

 
2,880

4 
Systems backlog (in units)
 
65

 
72

4 
65

 
72

4 
Average selling price of systems backlog (EUR millions)
 
37.0

 
40.0

4 
37.0

 
40.0

4 
Value of booked systems (EUR millions)
 
1,397

 
904

4 
3,515

 
3,455

4 
Net bookings (in units)
 
47

 
35

4 
106

 
121

4 
Average selling price of booked systems (EUR millions)
 
29.7

 
25.8

4 
33.2

 
28.6

4 
Number of payroll employees in FTEs
 
11,076

 
11,920

 
11,076

 
11,920

 
Number of temporary employees in FTEs
 
2,771

 
2,498

 
2,771

 
2,498

 



ASML - Summary US GAAP Consolidated Balance Sheets 1,2 

 
 
Dec 31,

 
Sep 27,

 
 
 
2014

 
2015

 
 (in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
Cash and cash equivalents
 
2,419.5

 
2,680.9

 
Short-term investments
 
334.9

 

 
Accounts receivable, net
 
1,052.5

 
1,089.4

 
Finance receivables, net
 
196.1

 
453.7

 
Current tax assets
 
43.9

 
42.8

 
Inventories, net
 
2,549.8

 
2,537.0

 
Deferred tax assets
 
159.5

 
127.6

 
Other assets
 
390.0

 
416.1

 
Total current assets
 
7,146.2

 
7,347.5

 
 
 
 
 
 
 
Finance receivables, net
 
55.3

 
49.8

 
Deferred tax assets
 
28.8

 
32.8

 
Other assets
 
444.8

 
429.4

 
Goodwill
 
2,357.5

 
2,574.0

 
Other intangible assets, net
 
723.8

 
739.5

 
Property, plant and equipment, net
 
1,447.5

 
1,532.6

 
Total non-current assets
 
5,057.7

 
5,358.1

 
 
 
 
 
 
 
Total assets
 
12,203.9

 
12,705.6

 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
Total current liabilities
 
2,888.8

 
2,711.3

 
 
 
 
 
 
 
Long-term debt
 
1,149.9

 
1,125.3

 
Deferred and other tax liabilities
 
237.3

 
259.2

 
Provisions
 
3.6

 
2.8

 
Accrued and other liabilities
 
411.7

 
462.1

 
Total non-current liabilities
 
1,802.5

 
1,849.4

 
 
 
 
 
 
 
Total liabilities
 
4,691.3

 
4,560.7

 
 
 
 
 
 
 
Total shareholders’ equity
 
7,512.6

 
8,144.9

 
Total liabilities and shareholders’ equity
 
12,203.9

 
12,705.6

 




ASML - Summary US GAAP Consolidated Statements of Cash Flows 1,2 

 
 
Three months ended,
 
Nine months ended,
 
 
Sep 28,

 
Sep 27,

 
Sep 28,

 
Sep 27,

 
 
2014

 
2015

 
2014

 
2015

 (in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
Net income
 
244.0

 
322.4

 
891.8

 
1,094.8

 
 
 
 
 
 
 
 
 
Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
60.4

 
77.5

 
192.1

 
216.4

Impairment
 
3.6

 
0.2

 
10.0

 
0.8

Loss on disposal of property, plant and equipment
 
0.9

 
0.3

 
2.1

 
1.6

Share-based payments
 
13.7

 
14.8

 
50.3

 
44.4

Allowance for doubtful receivables
 
0.1

 
0.6

 
0.3

 
2.7

Allowance for obsolete inventory
 
35.8

 
56.3

 
122.5

 
153.6

Deferred income taxes
 
(39.0
)
 
41.0

 
(57.9
)
 
48.1

Changes in assets and liabilities
 
(105.3
)
 
(93.3
)
 
(595.2
)
 
(521.6
)
Net cash provided by (used in) operating activities
 
214.2

 
419.8

 
616.0

 
1,040.8

 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
 
(84.2
)
 
(86.5
)
 
(230.4
)
 
(251.3
)
Purchase of intangible assets
 

 

 
(3.0
)
 
(1.1
)
Purchase of available for sale securities
 
(110.0
)
 

 
(479.7
)
 

Maturity of available for sale securities
 
169.9

 
25.0

 
619.9

 
334.9

Cash from (used for) derivative financial instruments
 

 
(37.8
)
 

 
(164.8
)
Net cash provided by (used in) investing activities
 
(24.3
)
 
(99.3
)
 
(93.2
)
 
(82.3
)
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
Dividend paid
 

 

 
(268.0
)
 
(302.3
)
Purchase of shares
 
(171.1
)
 
(141.5
)
 
(471.0
)
 
(424.2
)
Net proceeds from issuance of shares
 
10.6

 
9.0

 
24.2

 
23.5

Repayment of debt
 
(1.2
)
 
(1.0
)
 
(3.3
)
 
(2.5
)
Tax benefit from share-based payments
 
0.9

 
0.5

 
2.8

 
2.9

Net cash provided by (used in) financing activities
 
(160.8
)
 
(133.0
)
 
(715.3
)
 
(702.6
)
 
 
 
 
 
 
 
 
 
Net cash flows
 
29.1

 
187.5

 
(192.5
)
 
255.9

 
 
 
 
 
 
 
 
 
Effect of changes in exchange rates on cash
 
4.7

 
(1.6
)
 
6.6

 
5.5

Net increase (decrease) in cash and cash equivalents
 
33.8

 
185.9

 
(185.9
)
 
261.4





ASML - Quarterly Summary US GAAP Consolidated Statements of Operations 1,2 

 
Three months ended,
 
 
 
Sep 28,

 
Dec 31,

 
Mar 29,

 
Jun 28,

 
Sep 27,

 
 
 
2014

 
2014

 
2015

 
2015

 
2015

 
 (in millions EUR, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net system sales
 
884.5

 
1,085.3

 
1,246.5

 
1,134.5

 
975.3

 
Net service and field option sales
 
437.7

 
408.7

 
403.4

 
519.6

 
573.9

 
Total net sales
 
1,322.2

 
1,494.0

 
1,649.9

 
1,654.1

 
1,549.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Total cost of sales
 
(744.1
)
 
(837.1
)
 
(871.3
)
 
(900.3
)
 
(845.7
)
 
Gross profit
 
578.1

 
656.9

 
778.6

 
753.8

 
703.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Other income
 
20.3

 
20.2

 
20.8

 
20.8

 
20.8

 
Research and development costs
 
(260.1
)
 
(268.0
)
 
(261.4
)
 
(267.4
)
 
(266.3
)
 
Selling, general and administrative costs
 
(76.9
)
 
(79.4
)
 
(82.3
)
 
(88.3
)
 
(85.6
)
 
Income from operations
 
261.4

 
329.7

 
455.7

 
418.9

 
372.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and other, net
 
(2.0
)
 
(2.6
)
 
(3.5
)
 
(4.2
)
 
(4.2
)
 
Income before income taxes
 
259.4

 
327.1

 
452.2

 
414.7

 
368.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit from (provision for) income taxes
 
(15.4
)
 
(22.3
)
 
(49.5
)
 
(45.0
)
 
(45.8
)
 
Net income
 
244.0

 
304.8

 
402.7

 
369.7

 
322.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net income per ordinary share
 
0.56

 
0.70

 
0.93

 
0.86

 
0.75

 
Diluted net income per ordinary share
3 
0.56

 
0.70

 
0.93

 
0.85

 
0.75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of ordinary shares used in computing per share amounts (in millions):
 
 
 
 
 
Basic
 
436.1

 
434.1

 
432.6

 
431.4

 
429.9

 
Diluted
3 
439.0

 
436.7

 
435.3

 
433.8

 
432.3

 

ASML - Quarterly Summary Ratios and other data 1,2 
 
 
 
 
Sep 28,

 
Dec 31,

 
Mar 29,

 
Jun 28,

 
Sep 27,

 
 
2014

 
2014

 
2015

 
2015

 
2015

 
(in millions EUR, except otherwise indicated)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit as a percentage of net sales
43.7
%
 
44.0
%
 
47.2
%
 
45.6
%
 
45.4
%
 
Income from operations as a percentage of net sales
19.8
%
 
22.1
%
 
27.6
%
 
25.3
%
 
24.0
%
 
Net income as a percentage of net sales
18.5
%
 
20.4
%
 
24.4
%
 
22.4
%
 
20.8
%
 
Income taxes as a percentage of income before income taxes
5.9
%
 
6.8
%
 
11.0
%
 
10.8
%
 
12.4
%
 
Shareholders’ equity as a percentage of total assets
60.5
%
 
61.6
%
 
61.7
%
 
62.8
%
 
64.1
%
 
Sales of systems (in units)
30

 
35

 
47

 
41

 
44

 
Average selling price of system sales (EUR millions)
29.5

 
31.0

 
26.5

 
27.7

 
22.2

 
Value of systems backlog (EUR millions)
2,406

 
2,772

 
2,602

 
3,015

4 
2,880

4 
Systems backlog (in units)
65

 
82

 
75

 
81

4 
72

4 
Average selling price of systems backlog (EUR millions)
37.0

 
33.8

 
34.7

 
37.2

4 
40.0

4 
Value of booked systems (EUR millions)
1,397

 
1,387

 
1,028

 
1,523

4 
904

4 
Net bookings (in units)
47

 
51

 
40

 
46

4 
35

4 
Average selling price of booked systems (EUR millions)
29.7

 
27.2

 
25.7

 
33.1

4 
25.8

4 
Number of payroll employees in FTEs
11,076

 
11,318

 
11,533

 
11,676

 
11,920

 
Number of temporary employees in FTEs
2,771

 
2,754

 
2,644

 
2,527

 
2,498

 



ASML - Quarterly Summary US GAAP Consolidated Balance Sheets 1,2 

 
 
Sep 28,


Dec 31,


Mar 29,

 
Jun 28,

 
Sep 27,

 
 
 
2014


2014


2015

 
2015

 
2015

 
(in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
2,144.8

 
2,419.5

 
2,778.5

 
2,495.0

 
2,680.9

 
Short-term investments
 
539.8

 
334.9

 
60.0

 
25.0

 

 
Accounts receivable, net
 
961.2

 
1,052.5

 
1,270.6

 
1,282.3

 
1,089.4

 
Finance receivables, net
 
255.9

 
196.1

 
184.0

 
251.2

 
453.7

 
Current tax assets
 
76.7

 
43.9

 
94.3

 
52.3

 
42.8

 
Inventories, net
 
2,676.8

 
2,549.8

 
2,607.5

 
2,592.1

 
2,537.0

 
Deferred tax assets
 
144.2

 
159.5

 
173.8

 
178.1

 
127.6

 
Other assets
 
362.2

 
390.0

 
456.4

 
435.8

 
416.1

 
Total current assets
 
7,161.6

 
7,146.2

 
7,625.1

 
7,311.8

 
7,347.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Finance receivables, net
 
119.3

 
55.3

 
55.3

 
55.7

 
49.8

 
Deferred tax assets
 
115.8

 
28.8

 
30.5

 
33.3

 
32.8

 
Other assets
 
349.9

 
444.8

 
472.2

 
435.0

 
429.4

 
Goodwill
 
2,264.9

 
2,357.5

 
2,610.8

 
2,569.4

 
2,574.0

 
Other intangible assets, net
 
712.7

 
723.8

 
773.8

 
751.2

 
739.5

 
Property, plant and equipment, net
 
1,372.4

 
1,447.5

 
1,523.4

 
1,518.9

 
1,532.6

 
Total non-current assets
 
4,935.0

 
5,057.7

 
5,466.0

 
5,363.5

 
5,358.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
12,096.6

 
12,203.9

 
13,091.1

 
12,675.3

 
12,705.6

 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
Total current liabilities
 
2,926.0

 
2,888.8

 
3,194.3

 
2,853.9

 
2,711.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
1,137.4

 
1,149.9

 
1,155.5

 
1,115.8

 
1,125.3

 
Deferred and other tax liabilities
 
304.7

 
237.3

 
269.3

 
269.5

 
259.2

 
Provisions
 
4.0

 
3.6

 
3.7

 
3.2

 
2.8

 
Accrued and other liabilities
 
400.4

 
411.7

 
391.5

 
470.3

 
462.1

 
Total non-current liabilities
 
1,846.5

 
1,802.5

 
1,820.0

 
1,858.8

 
1,849.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
4,772.5

 
4,691.3

 
5,014.3

 
4,712.7

 
4,560.7

 
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
 
7,324.1

 
7,512.6

 
8,076.8

 
7,962.6

 
8,144.9

 
Total liabilities and shareholders’ equity
 
12,096.6

 
12,203.9

 
13,091.1

 
12,675.3

 
12,705.6

 




ASML - Quarterly Summary US GAAP Consolidated Statements of Cash Flows 1,2  

 
Three months ended,
 
 
 
Sep 28,

 
Dec 31,

 
Mar 29,

 
Jun 28,

 
Sep 27,

 
 
 
2014

 
2014

 
2015

 
2015

 
2015

 
 (in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Net income
 
244.0

 
304.8

 
402.7

 
369.7

 
322.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
60.4

 
62.5

 
66.1

 
72.8

 
77.5

 
Impairment
 
3.6

 
0.5

 

 
0.6

 
0.2

 
Loss on disposal of property, plant and equipment
 
0.9

 
1.4

 
0.9

 
0.4

 
0.3

 
Share-based payments
 
13.7

 
13.1

 
14.6

 
15.0

 
14.8

 
Allowance for doubtful receivables
 
0.1

 
(0.2
)
 
0.4

 
1.7

 
0.6

 
Allowance for obsolete inventory
 
35.8

 
40.3

 
37.0

 
60.3

 
56.3

 
Deferred income taxes
 
(39.0
)
 
(1.2
)
 
16.5

 
(9.4
)
 
41.0

 
Changes in assets and liabilities
 
(105.3
)
 
(12.0
)
 
(201.0
)
 
(227.3
)
 
(93.3
)
 
Net cash provided by (used in) operating activities
 
214.2

 
409.2

 
337.2

 
283.8

 
419.8

 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
 
(84.2
)
 
(127.9
)
 
(85.6
)
 
(79.2
)
 
(86.5
)
 
Purchase of intangible assets
 

 

 
(1.1
)
 

 

 
Purchase of available for sale securities
 
(110.0
)
 
(25.0
)
 

 

 

 
Maturity of available for sale securities
 
169.9

 
229.9

 
274.9

 
35.0

 
25.0

 
Cash from (used for) derivative financial instruments
 

 

 
(64.0
)
 
(63.0
)
 
(37.8
)
 
Net cash provided by (used in) investing activities
 
(24.3
)
 
77.0

 
124.2

 
(107.2
)
 
(99.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Dividend paid
 

 

 

 
(302.3
)
 

 
Purchase of shares
 
(171.1
)
 
(229.0
)
 
(117.1
)
 
(165.6
)
 
(141.5
)
 
Net proceeds from issuance of shares
 
10.6

 
15.5

 
4.4

 
10.1

 
9.0

 
Repayment of debt
 
(1.2
)
 
(0.8
)
 
(0.8
)
 
(0.7
)
 
(1.0
)
 
Tax benefit from share-based payments
 
0.9

 
1.2

 
1.8

 
0.6

 
0.5

 
Net cash provided by (used in) financing activities
 
(160.8
)
 
(213.1
)
 
(111.7
)
 
(457.9
)
 
(133.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flows
 
29.1

 
273.1

 
349.7

 
(281.3
)
 
187.5

 
 
 
 
 
 
 
 
 
 
 
 
 
       Effect of changes in exchange rates on cash
 
4.7

 
1.6

 
9.3

 
(2.2
)
 
(1.6
)
 
Net increase (decrease) in cash and cash equivalents
 
33.8

 
274.7

 
359.0

 
(283.5
)
 
185.9

 





Notes to the Summary US GAAP Consolidated Financial Statements


Basis of Presentation
The accompanying summary 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 (“US GAAP”). Further disclosures, as required under US 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 US 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 net sales and costs 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 entity of 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 50 percent of the voting rights.

Revenue recognition
In general, we recognize 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 our 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, we have never failed to successfully complete installation of a system at a customer’s premises.
In connection with the introduction of new technology, such as NXE:3300B, we initially defer revenue recognition until acceptance of the new technology based system and completion of installation at the customer's premises. As our systems are based largely on two product platforms that permit incremental, modular upgrades, the introduction of genuinely “new” technology occurs infrequently, and in the past 15 years, has occurred on only two occasions: 2000 (TWINSCAN) and 2010 (EUV).
The main portion of our 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.
For our NXE:3300B systems, we are unable to determine VSOE for prepaid extended, enhanced (optic) warranty contracts and installation. We determined for NXE:3300B systems that BESP is the appropriate reference in the fair value hierarchy for prepaid extended and enhanced (optic) warranty contracts. We review selling prices periodically and maintain internal controls over the establishment and updates of these elements.

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 denominated in euros, to a certain extent in U.S. dollars, Taiwanese dollars and Japanese yen and to a limited extent in other currencies. Therefore, we are exposed to foreign currency exchange risks.

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 US GAAP – IFRS 1,2 
Net income
Three months ended,
 
Nine months ended,
 
Sep 28,

Sep 27,

 
Sep 28,

Sep 27,

 
2014

2015

 
2014

2015

(in millions EUR)
 
 
 
 
 
Net income based on US GAAP
244.0

322.4

 
891.8

1,094.8

Development expenditures (see Note 1)
47.6

57.3

 
110.7

189.7

Share-based payments (see Note 2)
(0.1
)
0.4

 
4.1

2.4

Income taxes (see Note 3)
6.7

3.8

 
26.7

(11.7
)
Net income based on IFRS
298.2

383.9

 
1,033.3

1,275.2


Shareholders' equity
Sep 28,

Dec 31,

Mar 29,

Jun 28,

Sep 27,

 
2014

2014

2015

2015

2015

(in millions EUR)
 
 
 
 
 
Shareholders' equity based on US GAAP
7,324.1

7,512.6

8,076.8

7,962.6

8,144.9

Development expenditures (see Note 1)
702.3

792.1

878.1

937.9

995.7

Share-based payments (see Note 2)
20.7

21.0

22.4

22.0

18.3

Income taxes (see Note 3)
43.8

40.2

42.1

29.1

32.9

Equity based on IFRS
8,090.9

8,365.9

9,019.4

8,951.6

9,191.8



Notes to the reconciliation from US GAAP to IFRS

Note 1 Development expenditures
Under US 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 five years. Amortization starts when the developed product is ready for volume production.

Note 2 Share-based Payments
Under US 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 US 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 shares granted to its employees. 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 US 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 US 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”. 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.







This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expectations for the fourth quarter, expected customer demand in specified market segments including memory, logic and foundry, expected trends, expected liquidity and capital structure, expected levels of service sales, systems backlog, expected financial results, including expected sales, other income, gross margin, earnings per share and R&D and SG&A expenses and effective tax rate, annual revenue opportunity for ASML, productivity of our tools and systems performance, TWINSCAN and EUV system performance (such as endurance tests), expected industry trends, roadmaps and growth of the semiconductor industry, statements with respect to expected system shipments, including the number of EUV systems expected to be shipped and timing of shipments and other EUV targets (including availability, productivity and shipments) and roadmaps, the expected continuation of Moore's law, expected annual revenue growth and goals for holistic lithography, intention to return excess cash to shareholders, and statements about our dividend policy and intention to repurchase shares. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words.
These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, 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, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development, 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, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, 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. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.










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.
4
As of Q2 2015, our systems backlog and net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting as of the NXE:3350B). This change has no impact on the comparative figures.

 











Exhibit 99.4


ASML - Summary IFRS Consolidated Statement of Profit or Loss 1,2 


 
 
Three months ended,
 
Nine months ended,
 
 
 
Sep 28,

 
Sep 27,

 
Sep 28,

 
Sep 27,

 
 
 
2014

 
2015

 
2014

 
2015

 
(in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net system sales
 
884.5

 
975.3

 
3,157.5

 
3,356.3

 
Net service and field option sales
 
437.7

 
573.9

 
1,204.8

 
1,496.9

 
Total net sales
 
1,322.2

 
1,549.2

 
4,362.3

 
4,853.2

 
 
 
 
 
 
 
 
 
 
 
Total cost of sales
 
(762.0
)
 
(860.0
)
 
(2,504.0
)
 
(2,662.1
)
 
Gross profit
 
560.2

 
689.2

 
1,858.3

 
2,191.1

 
 
 
 
 
 
 
 
 
 
 
Other income
 
20.3

 
20.8

 
60.8

 
62.4

 
Research and development costs
 
(184.6
)
 
(179.5
)
 
(586.1
)
 
(520.4
)
 
Selling, general and administrative costs
 
(75.1
)
 
(85.2
)
 
(239.8
)
 
(255.8
)
 
Operating income
 
320.8

 
445.3

 
1,093.2

 
1,477.3

 
 
 
 
 
 
 
 
 
 
 
Interest and other, net
 
2.1

 
(4.3
)
 
0.7

 
(6.3
)
 
Income before income taxes
 
322.9

 
441.0

 
1,093.9

 
1,471.0

 
 
 
 
 
 
 
 
 
 
 
Benefit from (provision for) income taxes
 
(24.7
)
 
(57.1
)
 
(60.6
)
 
(195.8
)
 
Net income
 
298.2

 
383.9

 
1,033.3

 
1,275.2

 





ASML - Summary IFRS Consolidated Statement of Financial Position 1,2 

 
 
Dec 31,

 
Sep 27,

 
 
 
2014

 
2015

 
(in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
Property, plant and equipment
 
1,447.5

 
1,532.6

 
Goodwill
 
2,378.4

 
2,596.8

 
Other intangible assets
 
1,670.1

 
1,942.7

 
Deferred tax assets
 
142.7

 
147.2

 
Finance receivables
 
55.3

 
49.8

 
Derivative financial instruments
 
115.5

 
82.9

 
Other assets
 
329.3

 
346.5

 
Total non-current assets
 
6,138.8

 
6,698.5

 
 
 
 
 
 
 
Inventories
 
2,549.8

 
2,537.0

 
Current tax assets
 
43.9

 
42.8

 
Derivative financial instruments
 
38.3

 
52.1

 
Finance receivables
 
196.1

 
453.7

 
Accounts receivable
 
1,052.5

 
1,089.4

 
Other assets
 
293.6

 
302.7

 
Short-term investments
 
334.9

 

 
Cash and cash equivalents
 
2,419.5

 
2,680.9

 
Total current assets
 
6,928.6

 
7,158.6

 
 
 
 
 
 
 
Total assets
 
13,067.4

 
13,857.1

 
 
 
 
 
 
 
EQUITY AND LIABILITIES
 
 
 
 
 
Equity
 
8,365.9

 
9,191.8

 
 
 
 
 
 
 
Long-term debt
 
1,149.9

 
1,125.3

 
Derivative financial instruments
 
2.8

 
2.1

 
Deferred and other tax liabilities
 
249.3

 
363.9

 
Provisions
 
3.6

 
2.8

 
Accrued and other liabilities
 
408.9

 
460.0

 
Total non-current liabilities
 
1,814.5

 
1,954.1

 
 
 
 
 
 
 
Provisions
 
2.4

 
2.4

 
Derivative financial instruments
 
64.9

 
18.4

 
Current portion of long-term debt
 
4.3

 
4.2

 
Current and other tax liabilities
 
36.3

 
1.6

 
Accrued and other liabilities
 
2,282.9

 
2,180.8

 
Accounts payable
 
496.2

 
503.8

 
Total current liabilities
 
2,887.0

 
2,711.2

 
 
 
 
 
 
 
Total equity and liabilities
 
13,067.4

 
13,857.1

 




ASML - Summary IFRS Consolidated Statement of Cash Flows 1,2 

 
 
Three months ended,
 
Nine months ended,
 
 
Sep 28,

 
Sep 27,

 
Sep 28,

 
Sep 27,

 
 
2014

 
2015

 
2014

 
2015

 (in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
Net income
 
298.2

 
383.9

 
1,033.3

 
1,275.2

 
 
 
 
 
 
 
 
 
Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
77.6

 
91.9

 
273.0

 
261.5

Impairment
 
3.6

 
0.2

 
10.0

 
0.8

Loss on disposal of property, plant and equipment
 
0.9

 
0.3

 
2.1

 
1.6

Share-based payments
 
12.9

 
9.9

 
43.4

 
37.5

Allowance for doubtful receivables
 
0.1

 
0.6

 
0.3

 
2.7

Allowance for obsolete inventory
 
35.8

 
56.3

 
122.5

 
153.6

Deferred income taxes
 
(20.9
)
 
59.4

 
(63.4
)
 
114.3

Changes in assets and liabilities
 
(115.4
)
 
(95.8
)
 
(578.1
)
 
(522.2
)
Net cash provided by (used in) operating activities
 
292.8

 
506.7

 
843.1

 
1,325.0

 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
 
(84.2
)
 
(86.5
)
 
(230.4
)
 
(251.3
)
Purchase of intangible assets
 
(77.7
)
 
(86.4
)
 
(227.3
)
 
(282.4
)
Purchase of available for sale securities
 
(110.0
)
 

 
(479.7
)
 

Maturity of available for sale securities
 
169.9

 
25.0

 
619.9

 
334.9

Cash from (used for) derivative financial instruments
 

 
(37.8
)
 

 
(164.8
)
Net cash provided by (used in) investing activities
 
(102.0
)
 
(185.7
)
 
(317.5
)
 
(363.6
)
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
Dividend paid
 

 

 
(268.0
)
 
(302.3
)
Purchase of shares
 
(171.1
)
 
(141.5
)
 
(471.0
)
 
(424.2
)
Net proceeds from issuance of shares
 
10.6

 
9.0

 
24.2

 
23.5

Repayment of debt
 
(1.2
)
 
(1.0
)
 
(3.3
)
 
(2.5
)
Net cash provided by (used in) financing activities
 
(161.7
)
 
(133.5
)
 
(718.1
)
 
(705.5
)
 
 
 
 
 
 
 
 
 
Net cash flows
 
29.1

 
187.5

 
(192.5
)
 
255.9

 
 
 
 
 
 
 
 
 
Effect of changes in exchange rates on cash
 
4.7

 
(1.6
)
 
6.6

 
5.5

Net increase (decrease) in cash and cash equivalents
 
33.8

 
185.9

 
(185.9
)
 
261.4






ASML - Quarterly Summary IFRS Consolidated Statement of Profit or Loss 1,2 

 
Three months ended,
 
 
 
Sep 28,

 
Dec 31,

 
Mar 29,

 
Jun 28,

 
Sep 27,

 
 
 
2014

 
2014

 
2015

 
2015

 
2015

 
 (in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net system sales
 
884.5

 
1,085.3

 
1,246.5

 
1,134.5

 
975.3

 
Net service and field option sales
 
437.7

 
408.7

 
403.4

 
519.6

 
573.9

 
Total net sales
 
1,322.2

 
1,494.0

 
1,649.9

 
1,654.1

 
1,549.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Total cost of sales
 
(762.0
)
 
(854.9
)
 
(885.4
)
 
(916.7
)
 
(860.0
)
 
Gross profit
 
560.2

 
639.1

 
764.5

 
737.4

 
689.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Other income
 
20.3

 
20.2

 
20.8

 
20.8

 
20.8

 
Research and development costs
 
(184.6
)
 
(149.8
)
 
(164.1
)
 
(176.8
)
 
(179.5
)
 
Selling, general and administrative costs
 
(75.1
)
 
(78.9
)
 
(82.7
)
 
(87.9
)
 
(85.2
)
 
Operating income
 
320.8

 
430.6

 
538.5

 
493.5

 
445.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and other, net
 
2.1

 
1.9

 
(0.9
)
 
(1.1
)
 
(4.3
)
 
Income before income taxes
 
322.9

 
432.5

 
537.6

 
492.4

 
441.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit from (provision for) income taxes
 
(24.7
)
 
(47.5
)
 
(67.6
)
 
(71.1
)
 
(57.1
)
 
Net income
 
298.2

 
385.0

 
470.0

 
421.3

 
383.9

 





ASML - Quarterly Summary IFRS Consolidated Statement of Financial Position 1,2 

 
 
Sep 28,

 
Dec 31,

 
Mar 29,

 
Jun 28,

 
Sep 27,

 
 
 
2014

 
2014

 
2015

 
2015

 
2015

 
(in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
 
1,372.4

 
1,447.5

 
1,523.4

 
1,518.9

 
1,532.6

 
Goodwill
 
2,285.0

 
2,378.4

 
2,633.9

 
2,592.2

 
2,596.8

 
Other intangible assets
 
1,547.4

 
1,670.1

 
1,831.4

 
1,881.9

 
1,942.7

 
Deferred tax assets
 
344.1

 
142.7

 
151.5

 
146.8

 
147.2

 
Finance receivables
 
119.3

 
55.3

 
55.3

 
55.7

 
49.8

 
Derivative financial instruments
 
88.7

 
115.5

 
130.3

 
87.0

 
82.9

 
Other assets
 
257.2

 
329.3

 
342.0

 
348.0

 
346.5

 
Total non-current assets
 
6,014.1

 
6,138.8

 
6,667.8

 
6,630.5

 
6,698.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Inventories
 
2,676.8

 
2,549.8

 
2,607.5

 
2,592.1

 
2,537.0

 
Current tax assets
 
76.7

 
43.9

 
94.3

 
52.3

 
42.8

 
Derivative financial instruments
 
38.1

 
38.3

 
41.1

 
51.0

 
52.1

 
Finance receivables
 
255.9

 
196.1

 
184.0

 
251.2

 
453.7

 
Accounts receivable
 
961.2

 
1,052.5

 
1,270.6

 
1,282.3

 
1,089.4

 
Other assets
 
258.1

 
293.6

 
353.8

 
320.4

 
302.7

 
Short-term investments
 
539.8

 
334.9

 
60.0

 
25.0

 

 
Cash and cash equivalents
 
2,144.8

 
2,419.5

 
2,778.5

 
2,495.0

 
2,680.9

 
Total current assets
 
6,951.4

 
6,928.6

 
7,389.8

 
7,069.3

 
7,158.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
12,965.5

 
13,067.4

 
14,057.6

 
13,699.8

 
13,857.1

 
 
 
 
 
 
 
 
 
 
 
 
 
EQUITY AND LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Equity
 
8,090.9

 
8,365.9

 
9,019.4

 
8,951.6

 
9,191.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
1,133.4

 
1,149.9

 
1,155.5

 
1,115.8

 
1,125.3

 
Derivative financial instruments
 
3.0

 
2.8

 
2.6

 
2.3

 
2.1

 
Deferred and other tax liabilities
 
413.8

 
249.3

 
295.3

 
305.2

 
363.9

 
Provisions
 
4.0

 
3.6

 
3.7

 
3.2

 
2.8

 
Accrued and other liabilities
 
397.4

 
408.9

 
388.9

 
468.0

 
460.0

 
Total non-current liabilities
 
1,951.6

 
1,814.5

 
1,846.0

 
1,894.5

 
1,954.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Provisions
 
2.3

 
2.4

 
2.4

 
2.4

 
2.4

 
Derivative financial instruments
 
63.5

 
64.9

 
118.4

 
38.1

 
18.4

 
Current portion of long-term debt
 
4.3

 
4.3

 
4.3

 
4.2

 
4.2

 
Current and other tax liabilities
 
71.1

 
36.3

 
32.4

 
18.1

 
1.6

 
Accrued and other liabilities
 
2,065.0

 
2,282.9

 
2,299.4

 
2,069.2

 
2,180.8

 
Accounts payable
 
716.8

 
496.2

 
735.3

 
721.7

 
503.8

 
Total current liabilities
 
2,923.0

 
2,887.0

 
3,192.2

 
2,853.7

 
2,711.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity and liabilities
 
12,965.5

 
13,067.4

 
14,057.6

 
13,699.8

 
13,857.1

 




ASML - Quarterly Summary IFRS Consolidated Statement of Cash Flows 1,2 

 
Three months ended,
 
 
 
Sep 28,

 
Dec 31,

 
Mar 29,

 
Jun 28,

 
Sep 27,

 
 
 
2014

 
2014

 
2015

 
2015

 
2015

 
 (in millions EUR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Net income
 
298.2

 
385.0

 
470.0

 
421.3

 
383.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
77.6

 
80.1

 
80.3

 
89.3

 
91.9

 
Impairment
 
3.6

 
0.5

 

 
0.6

 
0.2

 
Loss on disposal of property, plant and equipment
 
0.9

 
1.4

 
0.9

 
0.4

 
0.3

 
Share-based payments
 
12.9

 
12.3

 
13.4

 
14.2

 
9.9

 
Allowance for doubtful receivables
 
0.1

 
(0.2
)
 
0.4

 
1.7

 
0.6

 
Allowance for obsolete inventory
 
35.8

 
40.3

 
37.0

 
60.3

 
56.3

 
Deferred income taxes
 
(20.9
)
 
33.3

 
40.1

 
14.8

 
59.4

 
Changes in assets and liabilities
 
(115.4
)
 
(21.5
)
 
(202.6
)
 
(223.8
)
 
(95.8
)
 
Net cash provided by (used in) operating activities
 
292.8

 
531.2

 
439.5

 
378.8

 
506.7

 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
 
(84.2
)
 
(127.9
)
 
(85.6
)
 
(79.2
)
 
(86.5
)
 
Purchase of intangible assets
 
(77.7
)
 
(120.8
)
 
(101.6
)
 
(94.4
)
 
(86.4
)
 
Purchase of available for sale securities
 
(110.0
)
 
(25.0
)
 

 

 

 
Maturity of available for sale securities
 
169.9

 
229.9

 
274.9

 
35.0

 
25.0

 
Cash from (used for) derivative financial instruments
 

 

 
(64.0
)
 
(63.0
)
 
(37.8
)
 
Net cash provided by (used in) investing activities
 
(102.0
)
 
(43.8
)
 
23.7

 
(201.6
)
 
(185.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Dividend paid
 

 

 

 
(302.3
)
 

 
Purchase of shares
 
(171.1
)
 
(229.0
)
 
(117.1
)
 
(165.6
)
 
(141.5
)
 
Net proceeds from issuance of shares
 
10.6

 
15.5

 
4.4

 
10.1

 
9.0

 
Repayment of debt
 
(1.2
)
 
(0.8
)
 
(0.8
)
 
(0.7
)
 
(1.0
)
 
Net cash provided by (used in) financing activities
 
(161.7
)
 
(214.3
)
 
(113.5
)
 
(458.5
)
 
(133.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flows
 
29.1

 
273.1

 
349.7

 
(281.3
)
 
187.5

 
 
 
 
 
 
 
 
 
 
 
 
 
       Effect of changes in exchange rates on cash
 
4.7

 
1.6

 
9.3

 
(2.2
)
 
(1.6
)
 
Net increase (decrease) in cash and cash equivalents
 
33.8

 
274.7

 
359.0

 
(283.5
)
 
185.9

 






Notes to the Summary IFRS Consolidated Financial Statements

Basis of Presentation
The accompanying summary consolidated financial statements are stated in millions of euros (“EUR”) unless otherwise indicated.
ASML has prepared the accompanying summary consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the EU (“IFRS”) accounting principles generally accepted in the Netherlands for companies quoted on Euronext Amsterdam. Further disclosures, as required under IFRS in annual reports and interim reporting (IAS 34), are not included in the summary consolidated financial statements.

For internal and external reporting purposes, we apply accounting principles generally accepted in the United States of America (“US GAAP”). US GAAP is our primary accounting standard for the setting of financial and operational performance targets.

Use of estimates
The preparation of our consolidated financial statements in conformity with IFRS 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 net sales and costs during the reported periods. Actual results could differ from those estimates.

Basis of consolidation
The consolidated financial statements include the financial statements of ASML Holding N.V. and all of its subsidiaries and the special purpose entity of 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 50 percent of the voting rights.


Revenue recognition
In general, we recognize the revenue from the sale of a system upon shipment and the revenue from the installation of a system upon completion of that installation at the customer site. Each system undergoes, prior to shipment, a "Factory Acceptance Test" in our 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, we have never failed to successfully complete installation of a system at a customer’s premises.


In connection with the introduction of new technology, such as NXE:3300B, we initially defer revenue recognition until acceptance of the new technology based system and completion of installation at the customer's premises. As our systems are based largely on two product platforms that permit incremental, modular upgrades, the introduction of genuinely “new” technology occurs infrequently, and in the past 15 years, has occurred on only two occasions: 2000 (TWINSCAN) and 2010 (EUV).

The main portion of our 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. The revenue relating to the undelivered elements of the arrangements is deferred 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 denominated in euros, to a certain extent in U.S. dollars, Taiwanese dollars and Japanese yen and to a limited extent in other currencies. Therefore, we are exposed to foreign currency exchange risks.

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 US GAAP – IFRS 1,2 


Net income
Three months ended,
 

Nine months ended,
 

Sep 28,

Sep 27,


Sep 28,

Sep 27,


2014

2015


2014

2015

(in millions EUR)





Net income based on US GAAP
244.0

322.4


891.8

1,094.8

Development expenditures (see Note 1)
47.6

57.3


110.7

189.7

Share-based payments (see Note 2)
(0.1
)
0.4


4.1

2.4

Income taxes (see Note 3)
6.7

3.8


26.7

(11.7
)
Net income based on IFRS
298.2

383.9


1,033.3

1,275.2


Shareholders' equity
Sep 28,

Dec 31,

Mar 29,

Jun 28,

Sep 27,


2014

2014

2015

2015

2015

(in millions EUR)





Shareholders' equity based on US GAAP
7,324.1

7,512.6

8,076.8

7,962.6

8,144.9

Development expenditures (see Note 1)
702.3

792.1

878.1

937.9

995.7

Share-based payments (see Note 2)
20.7

21.0

22.4

22.0

18.3

Income taxes (see Note 3)
43.8

40.2

42.1

29.1

32.9

Equity based on IFRS
8,090.9

8,365.9

9,019.4

8,951.6

9,191.8




Notes to the reconciliation from US GAAP to IFRS

Note 1 Development expenditures
Under US 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 five years. Amortization starts when the developed product is ready for volume production.
 
Note 2 Share-based Payments
Under US 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 US 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 shares granted to its employees. 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 US 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 US 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”. 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.






This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including expectations for the fourth quarter, expected customer demand in specified market segments including memory, logic and foundry, expected trends, expected liquidity and capital structure, expected levels of service sales, systems backlog, expected financial results, including expected sales, other income, gross margin, earnings per share and R&D and SG&A expenses and effective tax rate, annual revenue opportunity for ASML, productivity of our tools and systems performance, TWINSCAN and EUV system performance (such as endurance tests), expected industry trends, roadmaps and growth of the semiconductor industry, statements with respect to expected system shipments, including the number of EUV systems expected to be shipped and timing of shipments and other EUV targets (including availability, productivity and shipments) and roadmaps, the expected continuation of Moore's law, expected annual revenue growth and goals for holistic lithography, intention to return excess cash to shareholders, and statements about our dividend policy and intention to repurchase shares. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words.
These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, 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, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development, 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, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, 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. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.











1 
These financial statements are unaudited.
2 
Numbers have been rounded.





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