EX-99.4 5 d242106dex994.htm SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS Summary IFRS Consolidated Financial Statements

Exhibit 99.4

ASML - Summary IFRS Consolidated Income Statement 1,2

 

     Three months ended,     Nine months ended,  
(in millions EUR)    Sep 25, 2011     Sep 26, 2010     Sep 25, 2011     Sep 26, 2010  

Net system sales

     1,273.2        1,027.0        3,891.2        2,581.6   

Net service and field option sales

     185.3        149.0        548.9        404.9   
                                  

Total net sales

     1,458.5        1,176.0        4,440.1        2,986.5   

Total cost of sales

     872.9        711.1        2,569.1        1,835.7   
                                  

Gross profit on sales

     585.6        464.9        1,871.0        1,150.8   

Research and development costs

     134.2        107.8        392.6        284.1   

Selling, general and administrative costs

     54.7        48.3        159.5        131.3   
                                  

Operating income

     396.7        308.8        1,318.9        735.4   

Interest income (expense), net

     1.8        2.7        2.5        (6.7
                                  

Income before income taxes

     398.5        311.5        1,321.4        728.7   

Provision for income taxes

     (48.4     (42.1     (144.4     (105.4
                                  

Net income

     350.1        269.4        1,177.0        623.3   


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

 

(in millions EUR)    Sep 25, 2011      Dec 31, 2010  

ASSETS

     

Property, plant and equipment

     1,060.3         745.3   

Goodwill

     147.9         150.1   

Other intangible assets

     236.3         277.0   

Deferred tax assets

     228.6         234.2   

Finance receivables

     —           28.9   

Derivative financial instruments

     82.8         71.8   

Other assets

     161.8         159.6   

Total non-current assets

     1,917.7         1,666.9   

Inventories

     1,460.0         1,500.1   

Current tax assets

     1.0         12.7   

Derivative financial instruments

     28.0         24.4   

Finance receivables

     116.2         12.6   

Accounts receivable

     811.8         1,123.5   

Other assets

     194.5         163.8   

Cash and cash equivalents

     2,838.1         1,949.8   

Total current assets

     5,449.6         4,786.9   

Total assets

     7,367.3         6,453.8   

EQUITY AND LIABILITIES

     

Equity

     3,523.4         3,022.5   

Long-term debt

     729.3         704.3   

Derivative financial instruments

     3.1         2.0   

Deferred and other tax liabilities

     209.0         185.0   

Provisions

     10.1         11.8   

Accrued and other liabilities

     861.5         371.0   

Total non-current liabilities

     1,813.0         1,274.1   

Provisions

     2.2         2.3   

Derivative financial instruments

     29.0         32.9   

Current portion of long-term debt

     2.6         1.4   

Current and other tax liabilities

     39.9         79.4   

Accrued and other liabilities

     1,437.2         1,485.8   

Accounts payable

     520.0         555.4   

Total current liabilities

     2,030.9         2,157.2   

Total equity and liabilities

     7,367.3         6,453.8   


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

 

     Three months ended,     Nine months ended,  
(in millions EUR)    Sep 25, 2011     Sep 26, 2010     Sep 25, 2011     Sep 26, 2010  

CASH FLOWS FROM OPERATING ACTIVITIES

        

Net income

     350.1        269.4        1,177.0        623.3   

Depreciation and amortization

     68.6        78.4        206.8        212.7   

Impairment

     9.2        0.1        9.8        8.8   

Loss on disposals of property, plant and equipment

     0.3        0.4        2.2        2.0   

Share-based payments

     4.0        4.6        8.8        9.8   

Allowance for doubtful debts

     (0.9     0.6        0.3        0.8   

Allowance for obsolete inventory

     14.2        7.7        27.7        24.6   

Deferred income taxes

     (2.4     31.2        22.8        37.4   

Changes in assets and liabilities

     (89.4     42.3        529.9        (177.8

Net cash provided by operating activities

     353.7        434.7        1,985.3        741.6   

CASH FLOWS FROM INVESTING ACTIVITIES

        

Purchases of property, plant and equipment

     (79.8     (34.6     (207.2     (59.8

Proceeds from sale of property, plant and equipment

     —          —          —          —     

Purchases of intangible assets

     (15.5     (29.1     (47.2     (98.4

Net cash used in investing activities

     (95.3     (63.7     (254.4     (158.2

CASH FLOWS FROM FINANCING ACTIVITIES

        

Dividend paid

     —          —          (172.6     (87.0

Purchase of shares

     (173.7 )3      —          (539.4 )3      —     

Net proceeds from issuance of shares and stock options

     2.5        2.3        26.1        20.5   

Deposits from customers

     —          —          (150.0     —     

Repayment of debt

     (0.6     (2.1     (1.9     (6.3

Net cash provided by (used in) financing activities

     (171.8     0.2        (837.8     (72.8

Net cash flows

     86.6        371.2        893.1        510.6   

Effect of changes in exchange rates on cash

     9.4        (11.8     (4.8     0.3   

Net increase in cash and cash equivalents

     96.0        359.4        888.3        510.9   


ASML - Quarterly Summary IFRS Consolidated Income Statement 1,2

 

     Three months ended,  
     Sep 25,     Jun 26,     Mar 27,     Dec 31,     Sep 26,  
(in millions EUR)    2011     2011     2011     2010     2010  

Net system sales

     1,273.2        1,333.6        1,284.4        1,313.1        1,027.0   

Net service and field option sales

     185.3        195.8        167.8        208.3        149.0   

Total net sales

     1,458.5        1,529.4        1,452.2        1,521.4        1,176.0   

Total cost of sales

     872.9        868.4        827.8        860.4        711.1   

Gross profit on sales

     585.6        661.0        624.4        661.0        464.9   

Research and development costs

     134.2        130.6        127.8        184.0        107.8   

Selling, general and administrative costs

     54.7        49.6        55.2        51.1        48.3   

Operating income

     396.7        480.8        441.4        425.9        308.8   

Interest income (expense), net

     1.8        2.3        (1.6     (1.0     2.7   

Income before income taxes

     398.5        483.1        439.8        424.9        311.5   

Provision for income taxes

     (48.4     (61.3     (34.7     (62.7     (42.1

Net income

     350.1        421.8        405.1        362.2        269.4   


ASML - Quarterly Summary IFRS Consolidated Statement of

Financial Position 1,2

 

     Sep 25,      Jun 26,      Mar 27,      Dec 31,      Sep 26,  
(in millions EUR)    2011      2011      2011      2010      2010  

ASSETS

              

Property, plant and equipment

     1,060.3         960.2         848.7         745.3         724.8   

Goodwill

     147.9         140.7         141.6         150.1         149.7   

Other intangible assets

     236.3         247.3         263.8         277.0         339.4   

Deferred tax assets

     228.6         247.8         240.7         234.2         177.0   

Finance receivables

     —           —           —           28.9         32.2   

Derivative financial instruments

     82.8         49.5         64.0         71.8         87.3   

Other assets

     161.8         161.0         158.9         159.6         18.8   

Total non-current assets

     1,917.7         1,806.5         1,717.7         1,666.9         1,529.2   

Inventories

     1,460.0         1,616.7         1,572.0         1,500.1         1,458.5   

Current tax assets

     1.0         1.0         1.0         12.7         82.4   

Derivative financial instruments

     28.0         32.3         32.4         24.4         32.5   

Finance receivables

     116.2         61.9         —           12.6         12.3   

Accounts receivable

     811.8         895.1         1,018.8         1,123.5         915.0   

Other assets

     194.5         183.8         196.4         163.8         209.3   

Cash and cash equivalents

     2,838.1         2,742.1         2,699.5         1,949.8         1,548.0   

Total current assets

     5,449.6         5,532.9         5,520.1         4,786.9         4,258.0   

Total assets

     7,367.3         7,339.4         7,237.8         6,453.8         5,787.2   

EQUITY AND LIABILITIES

              

Equity

     3,523.4         3,353.3         3,312.0         3,022.5         2,606.2   

Long-term debt

     729.3         701.7         691.5         704.3         734.5   

Derivative financial instruments

     3.1         1.9         1.4         2.0         3.5   

Deferred and other tax liabilities

     209.0         211.0         202.7         185.0         215.4   

Provisions

     10.1         10.1         10.6         11.8         12.1   

Accrued and other liabilities

     861.5         831.9         578.0         371.0         55.0   

Total non-current liabilities

     1,813.0         1,756.6         1,484.2         1,274.1         1,020.5   

Provisions

     2.2         2.1         2.1         2.3         2.5   

Derivative financial instruments

     29.0         6.7         14.1         32.9         32.5   

Current portion of long-term debt

     2.6         2.6         2.6         1.4         1.4   

Current and other tax liabilities

     39.9         84.8         78.9         79.4         26.7   

Accrued and other liabilities

     1,437.2         1,509.0         1,514.7         1,485.8         1,427.8   

Accounts payable

     520.0         624.3         829.2         555.4         669.6   

Total current liabilities

     2,030.9         2,229.5         2,441.6         2,157.2         2,160.5   

Total equity and liabilities

     7,367.3         7,339.4         7,237.8         6,453.8         5,787.2   


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

 

     Three months ended,  
     Sep 25,     Jun 26,     Mar 27,     Dec 31,     Sep 26,  
(in millions EUR)    2011     2011     2011     2010     2010  

CASH FLOWS FROM OPERATING ACTIVITIES

          

Net income

     350.1        421.8        405.1        362.2        269.4   

Depreciation and amortization

     68.6        70.7        67.5        54.4        78.4   

Impairment

     9.2        0.3        0.3        10.7        0.1   

Loss on disposals of property, plant and equipment

     0.3        1.5        0.4        0.9        0.4   

Share-based payments

     4.0        1.8        3.0        2.3        4.6   

Allowance for doubtful debts

     (0.9     —          1.2        (2.1     0.6   

Allowance for obsolete inventory

     14.2        9.4        4.1        3.9        7.7   

Deferred income taxes

     (2.4     (1.6     26.8        (64.5     31.2   

Changes in assets and liabilities

     (89.4     9.5        609.8        (106.9     42.3   

Net cash provided by operating activities

     353.7        513.4        1,118.2        260.9        434.7   

CASH FLOWS FROM INVESTING ACTIVITIES

          

Purchases of property, plant and equipment

     (79.8     (60.7     (66.7     (68.9     (34.6

Proceeds from sale of property, plant and equipment

     —          —          —          3.8        —     

Purchases of intangible assets

     (15.5     (14.1     (17.6     43.0        (29.1

Net cash used in investing activities

     (95.3     (74.8     (84.3     (22.1     (63.7

CASH FLOWS FROM FINANCING ACTIVITIES

          

Dividend paid

     —          (172.6     —          —          —     

Purchase of shares

     (173.7 )3      (223.2     (142.5     —          —     

Net proceeds from issuance of shares and stock options

     2.5        2.5        21.1        10.5        2.3   

Deposits from customers

     —          —          (150.0     150.0        —     

Repayment of debt

     (0.6     (0.7     (0.6     (2.1     (2.1

Net cash provided by (used in) financing activities

     (171.8     (394.0     (272.0     158.4        0.2   

Net cash flows

     86.6        44.6        761.9        397.2        371.2   

Effect of changes in exchange rates on cash

     9.4        (2.0     (12.2     4.6        (11.8

Net increase in cash and cash equivalents

     96.0        42.6        749.7        401.8        359.4   


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 as adopted by the EU 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 dates of the statement of financial position 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 ASML’s cleanroom facilities, effectively replicating the operating conditions that will be present on the customer’s site, in order to verify whether the system will meet its standard specifications and any additional technical and performance criteria agreed with the customer. 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 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, the Company has never failed to successfully complete installation of a system at a customer’s premises.

A portion of the Company’s revenue is derived from contractual arrangements with its 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 extended and enhanced (optic) warranty contracts is recognized over the term of the contract.

Foreign currency risk management

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


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

As of September 25, 2011, equity includes EUR 11.6 million loss (net of taxes: EUR 10.3 million loss; December 31, 2010: EUR 35.9 million loss) representing the total anticipated loss to be charged to sales, and EUR 7.1 million gain (net of taxes: EUR 6.3 million gain; December 31, 2010: EUR 6.1 million loss) to be released to cost of sales, which will offset the EUR equivalent of foreign currency denominated forecasted sales and purchase transactions.

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

 

Net income    Three months ended,     Nine months ended,  
(in millions EUR)    Sep 25, 2011     Sep 26, 2010     Sep 25, 2011     Sep 26, 2010  

Net income under U.S. GAAP

     355.2        268.5        1,182.3        615.0   

Development costs (see Note 1)

     (8.6     1.6        (28.0     13.7   

Share-based payments (see Note 2)

     (0.4     (0.4     (0.6     (0.2

Reversal of write-downs (see Note 3)

     (1.8     (9.7     1.2        (9.5

Income taxes (see Note 4)

     5.7        9.4        22.1        4.3   

Net income under IFRS

     350.1        269.4        1,177.0        623.3   

 

Shareholders’ equity    Sep 25,      Jun 26,      Mar 27,      Dec 31,      Sep 26,  
(in millions EUR)    2011      2011      2011      2010      2010  

Shareholders’ equity under U.S. GAAP

     3,284.2         3,109.4         3,051.9         2,773.9         2,319.3   

Development costs (see Note 1)

     205.8         213.5         226.1         234.3         268.0   

Share-based payments (see Note 2)

     1.1         4.2         9.8         6.6         (0.2

Reversal of write-downs (see Note 3)

     3.8         5.6         5.8         2.6         7.6   

Income taxes (see Note 4)

     28.5         20.6         18.4         5.1         11.5   

Shareholders’ equity under IFRS

     3,523.4         3,353.3         3,312.0         3,022.5         2,606.2   


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

Note 1 Development costs

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

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

Note 2 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January 1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of its share-based payments with respect to stock options and stock granted to its employees after November 7, 2002. Under IFRS, at period end a deferred tax asset is computed on the basis of the tax deduction for the share-based payments under the applicable tax law and is recognized to the extent it is probable that future taxable profit will be available against which these deductible temporary differences will be utilized. Therefore, changes in 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 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 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 3 Reversal of write-downs

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

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

Note 4 Income taxes

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

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


“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of systems backlog, IC unit demand, financial results, average selling price, gross margin and expenses, dividend policy and intention to repurchase shares. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of manufacturing efficiencies and capacity constraints, the pace of new product development and customer acceptance of new products, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, available cash, distributable reserves for dividend payments and share repurchases, and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission.


1 

These financial statements are unaudited.

2 

Numbers have been rounded.

3 

During the third quarter of 2011, ASML repurchased shares for an amount of EUR 185.3 million. As of September 25, 2011, EUR 19.7 million of the total cost of repurchased shares remained unpaid and is recorded in accrued and other current liabilities. This is offset by a payment of EUR 8.1 million, which was the unpaid balance in the second quarter of 2011.