EX-99.4 5 u06719exv99w4.htm EX-99.4 EX-99.4
Exhibit 99.4
ASML — Summary IFRS Consolidated Income Statements 1
                 
    Three months ended,
(in thousands EUR)   Mar 30, 2008   Mar 29, 2009
 
 
               
Net system sales
    819,986       101,100  
Net service and field option sales
    99,222       82,525  
 
Total net sales
    919,208       183,625  
 
               
Cost of sales
    561,687       196,360  
 
Gross profit (loss) on sales
    357,521       (12,735 )
 
               
Research and development costs, net of credits
    82,723       78,025  
Selling, general and administrative costs
    57,696       41,968  
 
Operating income (loss)
    217,102       (132,728 )
 
               
Interest income
    3,575       3,261  
 
Income (loss) before income taxes
    220,677       (129,467 )
 
               
(Provision for) benefit from income taxes
    (54,217 )     21,692  
 
Net income (loss)
    166,460       (107,775 )

 


 

ASML — Summary IFRS Consolidated Balance Sheets 1
                 
(in thousands EUR)   Dec 31, 2008   Mar 29, 2009
 
 
               
ASSETS
               
 
               
Property, plant and equipment
    550,921       596,069  
Goodwill
    139,626       148,415  
Other intangible assets
    289,530       306,082  
Deferred tax assets
    225,544       244,609  
Finance receivables
    31,030       29,250  
Derivative financial instruments
    53,206       69,986  
Other assets
    29,449       14,177  
 
Total non-current assets
    1,319,306       1,408,588  
 
               
Inventories
    999,150       936,770  
Current tax assets
    87,560        
Derivative financial instruments
    39,240       33,580  
Finance receivables
    6,225       6,193  
Accounts receivable
    463,273       291,644  
Other assets
    170,680       186,004  
Cash and cash equivalents
    1,109,184       1,151,010  
 
Total current assets
    2,875,312       2,605,201  
 
               
Total assets
    4,194,618       4,013,789  
 
               
EQUITY AND LIABILITIES
               
 
               
Equity
    2,188,743       2,007,676  
 
               
Long-term debt
    661,483       671,492  
Derivative financial instruments
    19,743       1,566  
Deferred and other tax liabilities
    260,360       258,081  
Provisions
    15,495       16,955  
Accrued liabilities and other liabilities
    50,293       46,678  
 
Total non-current liabilities
    1,007,374       994,772  
 
               
Accounts payable
    193,690       165,252  
Accrued liabilities and other liabilities
    732,043       789,796  
Current tax liabilities
    20,039       11,161  
Derivative financial instruments
    48,051       40,650  
Provisions
    4,678       4,482  
 
Total current liabilities
    998,501       1,011,341  
 
               
Total equity and liabilities
    4,194,618       4,013,789  

 


 

ASML — Summary IFRS Consolidated Statements of Cash Flows 1
                 
    Three months ended,
(in thousands EUR)   Mar 30, 2008   Mar 29, 2009
 
 
               
CASH FLOWS FROM OPERATING ACTIVITIES
               
 
               
Net income (loss)
    166,460       (107,775 )
 
               
Depreciation and amortization
    45,218       63,644  
Loss on disposals of property, plant and equipment
    1,103       2,639  
Impairment charges
    1,551       2,592  
Share-based payments
    3,404       3,512  
Allowance for doubtful debts
    540       (13 )
Allowance for obsolete inventory
    20,766       22,135  
Change in assets and liabilities
    73,840       137,312  
 
Net cash provided by operating activities
    312,882       124,046  
 
               
CASH FLOWS FROM INVESTING ACTIVITIES
               
 
               
Purchases of property, plant and equipment
    (55,032 )     (43,903 )
Proceeds from sale of property, plant and equipment
          1,200  
Purchases of intangible assets
    (45,526 )     (40,291 )
 
Net cash used in investing activities
    (100,558 )     (82,994 )
 
               
CASH FLOWS FROM FINANCING ACTIVITIES
               
 
               
Purchase of shares in conjunction with share-based payment plans
    (87,605 )      
Net proceeds from issuance of shares and stock options
    2,975       102  
Redemption and / or repayment of debt
          (1,735 )
 
Net cash provided by (used in) financing activities
    (84,630 )     (1,633 )
 
               
 
Net cash flows
    127,694       39,419  
 
Effect of changes in exchange rates on cash
    (2,186 )     2,407  
 
Net increase in cash & cash equivalents
    125,508       41,826  
 
             

 


 

ASML — Quarterly Summary IFRS Consolidated Income Statements 1
                                         
    Three months ended,  
    Mar 30,     Jun 29,     Sep 28,     Dec 31,     Mar 29,  
(in millions EUR)   2008     2008     2008     2008     2009  
 
 
                                       
Net system sales
    820.0       725.6       590.7       380.5       101.1  
Net service and field option sales
    99.2       118.6       105.8       113.3       82.5  
 
Total net sales
    919.2       844.2       696.5       493.8       183.6  
 
                                       
Cost of sales
    561.7       525.3       452.7       476.5       196.3  
 
Gross profit (loss) on sales
    357.5       318.9       243.8       17.3       (12.7 )
 
                                       
Research and development costs, net of credits
    82.7       87.1       88.6       95.8       78.0  
Selling, general and administrative costs
    57.7       55.3       52.2       47.7       42.0  
 
Operating income (loss)
    217.1       176.5       103.0       (126.2 )     (132.7 )
 
                                       
Interest income
    3.6       5.0       6.6       2.8       3.2  
 
Income (loss) before income taxes
    220.7       181.5       109.6       (123.4 )     (129.5 )
 
                                       
(Provision for) benefit from income taxes
    (54.2 )     29.0       (27.0 )     40.8       21.7  
 
Net income (loss)
    166.5       210.5       82.6       (82.6 )     (107.8 )

 


 

ASML — Quarterly Summary IFRS Consolidated Balance Sheets 1
                                         
    Mar 30,     Jun 29,     Sep 28,     Dec 31,     Mar 29,  
(in millions EUR)   2008     2008     2008     2008     2009  
 
 
                                       
ASSETS
                                       
 
                                       
Property, plant and equipment
    401.4       458.1       503.1       550.9       596.1  
Goodwill
    127.2       127.3       137.3       139.6       148.4  
Other intangible assets
    238.0       260.5       281.3       289.5       306.1  
Deferred tax assets
    213.3       238.4       228.6       225.6       244.6  
Finance receivables
                30.7       31.0       29.2  
Derivative financial instruments
    47.7       1.4       12.3       53.2       70.0  
Other assets
    31.8       32.0       32.6       29.5       14.2  
 
Total non-current assets
    1,059.4       1,117.7       1,225.9       1,319.3       1,408.6  
 
                                       
Inventories
    1,152.0       1,130.2       1,134.0       999.1       936.8  
Current tax assets
                      87.6        
Derivative financial instruments
    36.5       46.6       21.0       39.2       33.6  
Finance receivables
    0.2       0.2       7.4       6.2       6.2  
Accounts receivable
    741.3       516.7       536.1       463.3       291.6  
Other assets
    202.4       185.9       210.6       170.7       186.0  
Cash and cash equivalents
    1,397.1       1,360.9       1,313.0       1,109.2       1,151.0  
 
Total current assets
    3,529.5       3,240.5       3,222.1       2,875.3       2,605.2  
 
                                       
Total assets
    4,588.9       4,358.2       4,448.0       4,194.6       4,013.8  
 
                                       
EQUITY AND LIABILITIES
                                       
 
                                       
Equity
    2,121.8       2,242.6       2,314.7       2,188.7       2,007.7  
 
                                       
Long-term debt
    609.1       585.6       591.0       661.5       671.5  
Derivative financial instruments
          11.2       0.9       19.7       1.6  
Deferred and other tax liabilities
    282.9       260.2       256.9       260.4       258.1  
Provisions
                      15.5       16.9  
Accrued liabilities and other liabilities
    7.2       7.4       7.8       50.3       46.7  
 
Total non-current liabilities
    899.2       864.4       856.6       1,007.4       994.8  
 
                                       
Accounts payable
    479.6       267.2       271.0       193.7       165.2  
Accrued liabilities and other liabilities
    957.7       910.8       948.1       732.0       789.8  
Current tax liabilities
    111.5       50.8       42.4       20.0       11.2  
Derivative financial instruments
    19.1       22.4       15.2       48.1       40.6  
Provisions
                      4.7       4.5  
 
Total current liabilities
    1,567.9       1,251.2       1,276.7       998.5       1,011.3  
 
                                       
Total equity and liabilities
    4,588.9       4,358.2       4,448.0       4,194.6       4,013.8  

 


 

ASML — Quarterly Summary IFRS Consolidated Statements of Cash Flows 1
                                         
    Three months ended,  
    Mar 30,     Jun 29,     Sep 28,     Dec 31,     Mar 29,  
(in millions EUR)   2008     2008     2008     2008     2009  
 
 
                                       
CASH FLOWS FROM OPERATING ACTIVITIES
                                       
 
                                       
Net income (loss)
    166.5       210.5       82.6       (82.6 )     (107.8 )
 
                                       
Depreciation and amortization
    45.2       44.7       50.1       57.2       63.6  
Loss on disposals of property, plant and equipment
    1.1       1.3       1.4       0.4       2.7  
Impairment charges
    1.6             0.6       41.2       2.6  
Share-based payments
    3.4       2.9       3.6       3.0       3.5  
Allowance for doubtful debts
    0.5       (0.6 )     (0.2 )     0.5        
Allowance for obsolete inventory
    20.8       11.8       21.3       85.8       22.1  
Change in assets and liabilities
    73.8       (91.6 )     (99.0 )     (215.3 )     137.3  
 
Net cash provided by (used in) operating activities
    312.9       179.0       60.4       (109.8 )     124.0  
 
                                       
CASH FLOWS FROM INVESTING ACTIVITIES
                                       
 
                                       
Purchases of property, plant and equipment
    (55.0 )     (65.5 )     (68.3 )     (71.1 )     (43.9 )
Proceeds from sale of property, plant and equipment
                            1.2  
Purchases of intangible assets
    (45.6 )     (43.0 )     (41.4 )     (49.4 )     (40.3 )
 
Net cash used in investing activities
    (100.6 )     (108.5 )     (109.7 )     (120.5 )     (83.0 )
 
                                       
CASH FLOWS FROM FINANCING ACTIVITIES
                                       
 
                                       
Purchase of shares in conjunction with share-based payment plans
    (87.6 )                        
Dividend paid
          (107.4 )     (0.4 )            
Net proceeds from issuance of shares and stock options
    3.0       0.5       1.4       6.5       0.1  
Net proceeds from other long-term debt
                      19.9        
Redemption and/or repayment of debt
                (1.3 )     (1.1 )     (1.7 )
 
Net cash provided by (used in) financing activities
    (84.6 )     (106.9 )     (0.3 )     25.3       (1.6 )
 
                                       
 
Net cash flows
    127.7       (36.4 )     (49.6 )     (205.0 )     39.4  
 
                                       
Effect of changes in exchange rates on cash
    (2.2 )     0.2       1.7       1.2       2.4  
 
Net increase (decrease) in cash & cash equivalents
    125.5       (36.2 )     (47.9 )     (203.8 )     41.8  

 


 

ASML — Notes to the Summary IFRS Consolidated Financial Statements
Basis of Presentation
ASML has prepared the accompanying summary consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU – 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. The accompanying consolidated financial statements are stated in thousands of euros (‘EUR’), except otherwise indicated.
For internal and external reporting purposes, ASML follows accounting principles generally accepted in the United States of America (“U.S. GAAP”). U.S. GAAP is ASML’s primary accounting standard for the Company’s setting of financial and operational performance targets.
Principles of consolidation
The consolidated financial statements include the accounts of ASML Holding N.V. and all of its majority-owned subsidiaries. Subsidiaries are all entities over which ASML has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. All intercompany profits, balances and transactions have been eliminated in the consolidation.
Use of estimates
The preparation of ASML’s consolidated financial statements in conformity with 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 revenue and expense during the reported periods. Actual results could differ from those estimates.
Recognition of revenues
In general, ASML recognizes 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 clean room 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. A system is shipped, and revenue is recognized, only after all specifications are met and customer sign-off is received or waived. 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.
A portion of our revenue is derived from contractual arrangements with our customers that have multiple deliverables, such as installation and training services, prepaid service contracts and prepaid extended 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 service contracts and prepaid extended optic warranty contracts is recognized over the term of the contract.

 


 

ASML – Reconciliation U.S. GAAP – IFRS 1
Net income
                 
    Three months ended,  
(in thousands EUR)   Mar 30, 2008     Mar 29, 2009  
 
Net income under U.S. GAAP
    145,123       (117,191 )
Share-based payments (see Note 1)
    (762 )     (499 )
Capitalization of development costs (see Note 2)
    21,681       11,515  
Income taxes (see Note 3)
    418       (1,600 )
 
Net income under IFRS
    166,460       (107,775 )
Shareholders’ equity
                                         
    Mar 30,     Jun 29,     Sep 28,     Dec 31,     Mar 29,  
(in thousands EUR)   2008     2008     2008     2008     2009  
 
Shareholders’ equity under U.S. GAAP
    1,958,159       2,060,575       2,122,848       1,988,769       1,795,951  
Share-based payments (see Note 1)
    (3,420 )     (3,266 )     (7,904 )     (6,537 )     (7,088 )
Capitalization of development costs (see Note 2)
    157,900       176,818       193,780       201,717       215,452  
Income taxes (see Note 3)
    9,186       8,478       5,969       4,794       3,361  
 
Shareholders’ equity under IFRS
    2,121,825       2,242,605       2,314,693       2,188,743       2,007,676  
Notes to the reconciliation from U.S. GAAP to IFRS
Note 1 Share-based Payments
Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January 1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of its share-based payments with respect to stock options and stock granted to its employees after November 7, 2002. Under IFRSs, a deferred tax asset is computed on the basis of the tax deduction for the share-based payments every period 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 the Company’s share price do affect the deferred tax asset at period-end and result in adjustments to the deferred tax asset.
As of January 1, 2006, ASML applies SFAS No. 123(R) “Share-Based Payment” which is a revision of SFAS No.123. SFAS 123(R) 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. FAS 123(R)’s general principle is that a deferred tax asset is established as the Company recognizes 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 the Company’s share price do not affect the deferred tax asset recorded in the Company’s financial statements.
Note 2 Capitalization of development costs
Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38, capitalized development expenditures 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. In 2008, we recognized an impairment charge for an amount of EUR 18.3 million.
Under U.S. GAAP, ASML applies SFAS No. 2, “Accounting for Research and Development Costs”. In accordance with SFAS No. 2, ASML charges costs relating to research and development to operating expense as incurred.

 


 

Note 3 Income taxes
Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1, 2005. In accordance with IAS 12 unrealized net income resulting from intercompany transactions that are eliminated from the carrying amount of assets on consolidation, give rise to a temporary difference for which deferred taxes must be recognized on consolidation. The deferred taxes are calculated based on the tax rate applicable in the purchaser’s tax jurisdiction.
Under U.S. GAAP, the elimination of unrealized net income from intercompany transactions that are eliminated from the carrying amount of assets on consolidation, give rise to a temporary difference for which prepaid taxes must be recognized on consolidation. Contrary to IFRS, the prepaid taxes under U.S. GAAP are calculated based on the tax rate applicable in the seller’s tax jurisdiction.
“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average sales price, gross margin and expenses. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, credit market deterioration on consumer confidence which could affect our customers, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), competitive products and pricing, manufacturing efficiencies, new product development and customer acceptance of new products, ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates 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   All quarterly information in this press release is unaudited.