EX-99.4 5 u07236exv99w4.htm EXHIBIT 99.4 Exhibit 99.4
Exhibit 99.4
ASML — Summary IFRS Consolidated Income Statement 1
                                 
    Three months ended,   Six months ended,
(in thousands EUR)   Jun 29, 2008   Jun 28, 2009   Jun 29, 2008   Jun 28, 2009
 
 
                               
Net system sales
    725,586       183,259       1,545,572       284,359  
Net service and field option sales
    118,571       93,341       217,793       175,866  
 
Total net sales
    844,157       276,600       1,763,365       460,225  
 
                               
Cost of sales
    525,228       248,569       1,086,915       444,929  
 
Gross profit on sales
    318,929       28,031       676,450       15,296  
 
                               
Research and development costs, net of credits
    87,066       82,512       169,789       160,536  
Selling, general and administrative costs
    55,331       38,917       113,027       80,885  
 
Operating income (loss)
    176,532       (93,398 )     393,634       (226,125 )
 
                               
Interest income (charges)
    4,973       (1,290 )     8,548       1,970  
 
Income (loss) before income taxes
    181,505       (94,688 )     402,182       (224,155 )
 
                               
(Provision for) benefit from income taxes
    28,986       13,433       (25,231 )     35,125  
 
Net income (loss)
    210,491       (81,255 )     376,951       (189,030 )

 


 

ASML — Summary IFRS Consolidated Statement of Financial Position 1
                 
(in thousands EUR)   Dec 31, 2008   Jun 28, 2009
 
 
               
ASSETS
               
 
               
Property, plant and equipment
    550,921       600,485  
Goodwill
    139,626       142,901  
Other intangible assets
    289,530       330,421  
Deferred tax assets
    225,544       268,700  
Finance receivables
    31,030       20,609  
Derivative financial instruments
    53,206       33,375  
Other assets
    29,449       15,219  
 
Total non-current assets
    1,319,306       1,411,710  
 
               
Inventories
    999,150       926,080  
Current tax assets
    87,560        
Derivative financial instruments
    39,240       37,936  
Finance receivables
    6,225       52  
Accounts receivable
    463,273       213,532  
Other assets
    170,680       162,138  
Cash and cash equivalents
    1,109,184       1,092,660  
 
Total current assets
    2,875,312       2,432,398  
 
               
Total assets
    4,194,618       3,844,108  
 
               
EQUITY AND LIABILITIES
               
 
               
Equity
    2,188,743       1,925,064  
 
               
Long-term debt
    661,483       660,462  
Derivative financial instruments
    19,743       1,043  
Deferred and other tax liabilities
    260,360       263,623  
Provisions
    15,495       14,790  
Accrued liabilities and other liabilities
    50,293       44,576  
 
Total non-current liabilities
    1,007,374       984,494  
 
               
Accounts payable
    193,690       234,567  
Accrued liabilities and other liabilities
    732,043       652,413  
Current tax liabilities
    20,039       19,946  
Derivative financial instruments
    48,051       24,990  
Provisions
    4,678       2,634  
 
Total current liabilities
    998,501       934,550  
 
               
Total equity and liabilities
    4,194,618       3,844,108  

 


 

ASML — Summary IFRS Consolidated Statement of Cash Flows 1
                                 
    Three months ended,   Six months ended,
(in thousands EUR)   Jun 29, 2008   Jun 28, 2009   Jun 29, 2008   Jun 28, 2009
 
 
                               
CASH FLOWS FROM OPERATING ACTIVITIES
                               
 
                               
Net income (loss)
    210,491       (81,255 )     376,951       (189,030 )
 
                               
Depreciation and amortization
    44,723       38,737       89,941       102,381  
Impairment charges
    93       4,387       1,644       6,979  
Loss on disposals of property, plant and equipment
    1,311       8,699       2,414       11,338  
Share-based payments
    2,873       2,581       6,277       6,093  
Allowance for doubtful debts
    (647 )     1,177       (107 )     1,164  
Allowance for obsolete inventory
    11,790       43,897       32,556       66,032  
Change in assets and liabilities
    (91,605 )     90,395       (17,765 )     227,707  
 
Net cash provided by operating activities
    179,029       108,618       491,911       232,664  
 
                               
CASH FLOWS FROM INVESTING ACTIVITIES
                               
 
                               
Purchases of property, plant and equipment
    (65,441 )     (43,336 )     (120,473 )     (87,240 )
Proceeds from sale of property, plant and equipment
                      1,200  
Purchases of intangible assets
    (43,083 )     (35,378 )     (88,609 )     (75,669 )
 
Net cash used in investing activities
    (108,524 )     (78,714 )     (209,082 )     (161,709 )
 
                               
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
    552       429       3,527       532  
Dividend paid
    (107,447 )     (86,486 )     (107,447 )     (86,486 )
Net proceeds from other long term debt
          32             32  
Redemption and / or repayment of debt
          (1,745 )           (3,480 )
 
Net cash used in financing activities
    (106,895 )     (87,770 )     (191,525 )     (89,402 )
 
                               
 
Net cash flows
    (36,390 )     (57,866 )     91,304       (18,447 )
Effect of changes in exchange rates on cash
    144       (484 )     (2,042 )     1,923  
 
Net increase (decrease) in cash & cash equivalents
    (36,246 )     (58,350 )     89,262       (16,524 )

 


 

ASML — Quarterly Summary IFRS Consolidated Income Statement 1
                                         
    Three months ended,  
    Jun 29,     Sep 28,     Dec 31,     Mar 29,     Jun 28,  
(in millions EUR)   2008     2008     2008     2009     2009  
 
 
                                       
Net system sales
    725.6       590.7       380.5       101.1       183.3  
Net service and field option sales
    118.6       105.8       113.3       82.5       93.3  
 
Total net sales
    844.2       696.5       493.8       183.6       276.6  
 
                                       
Cost of sales
    525.3       452.7       476.5       196.3       248.6  
 
Gross profit (loss) on sales
    318.9       243.8       17.3       (12.7 )     28.0  
 
                                       
Research and development costs, net of credits
    87.1       88.6       95.8       78.0       82.5  
Selling, general and administrative costs
    55.3       52.2       47.7       42.0       38.9  
 
Operating income (loss)
    176.5       103.0       (126.2 )     (132.7 )     (93.4 )
 
                                       
Interest income (charges)
    5.0       6.6       2.8       3.2       (1.3 )
 
Income (loss) before income taxes
    181.5       109.6       (123.4 )     (129.5 )     (94.7 )
 
                                       
(Provision for) benefit from income taxes
    29.0       (27.0 )     40.8       21.7       13.4  
 
Net income (loss)
    210.5       82.6       (82.6 )     (107.8 )     (81.3 )

 


 

ASML — Quarterly Summary IFRS Consolidated Statement of Financial Position 1
                                         
    Jun 29,     Sep 28,     Dec 31,     Mar 29,     Jun 28,  
(in millions EUR)   2008     2008     2008     2009     2009  
 
 
                                       
ASSETS
                                       
 
                                       
Property, plant and equipment
    458.1       503.1       550.9       596.1       600.5  
Goodwill
    127.3       137.3       139.6       148.4       142.9  
Other intangible assets
    260.5       281.3       289.5       306.1       330.4  
Deferred tax assets
    238.4       228.6       225.6       244.6       268.7  
Finance receivables
          30.7       31.0       29.2       20.6  
Derivative financial instruments
    1.4       12.3       53.2       70.0       33.4  
Other assets
    32.0       32.6       29.5       14.2       15.2  
 
Total non-current assets
    1,117.7       1,225.9       1,319.3       1,408.6       1,411.7  
 
                                       
Inventories
    1,130.2       1,134.0       999.1       936.8       926.1  
Current tax assets
                87.6              
Derivative financial instruments
    46.6       21.0       39.2       33.6       37.9  
Finance receivables
    0.2       7.4       6.2       6.2       0.1  
Accounts receivable
    516.7       536.1       463.3       291.6       213.5  
Other assets
    185.9       210.6       170.7       186.0       162.1  
Cash and cash equivalents
    1,360.9       1,313.0       1,109.2       1,151.0       1,092.7  
 
Total current assets
    3,240.5       3,222.1       2,875.3       2,605.2       2,432.4  
 
                                       
Total assets
    4,358.2       4,448.0       4,194.6       4,013.8       3,844.1  
 
                                       
EQUITY AND LIABILITIES
                                       
 
                                       
Equity
    2,242.6       2,314.7       2,188.7       2,007.7       1,925.1  
 
                                       
Long-term debt
    585.6       591.0       661.5       671.5       660.5  
Derivative financial instruments
    11.2       0.9       19.7       1.6       1.0  
Deferred and other tax liabilities
    260.2       256.9       260.4       258.1       263.6  
Provisions
                15.5       16.9       14.8  
Accrued liabilities and other liabilities
    7.4       7.8       50.3       46.7       44.6  
 
Total non-current liabilities
    864.4       856.6       1,007.4       994.8       984.5  
 
                                       
Accounts payable
    267.2       271.0       193.7       165.2       234.6  
Accrued liabilities and other liabilities
    910.8       948.1       732.0       789.8       652.4  
Current tax liabilities
    50.8       42.4       20.0       11.2       19.9  
Derivative financial instruments
    22.4       15.2       48.1       40.6       25.0  
Provisions
                4.7       4.5       2.6  
 
Total current liabilities
    1,251.2       1,276.7       998.5       1,011.3       934.5  
 
                                       
Total equity and liabilities
    4,358.2       4,448.0       4,194.6       4,013.8       3,844.1  

 


 

ASML — Quarterly Summary IFRS Consolidated Statement of Cash Flows 1
                                         
    Three months ended,  
    Jun 29,     Sep 28,     Dec 31,     Mar 29,     Jun 28,  
(in millions EUR)   2008     2008     2008     2009     2009  
 
 
                                       
CASH FLOWS FROM OPERATING ACTIVITIES
                                       
 
                                       
Net income (loss)
    210.5       82.6       (82.6 )     (107.8 )     (81.3 )
 
                                       
Depreciation and amortization
    44.7       50.1       57.2       63.6       38.7  
Impairment charges
          0.6       41.2       2.6       4.4  
Loss on disposals of property, plant and equipment
    1.3       1.4       0.4       2.6       8.7  
Share-based payments
    2.9       3.6       3.0       3.5       2.6  
Allowance for doubtful debts
    (0.6 )     (0.2 )     0.5             1.2  
Allowance for obsolete inventory
    11.8       21.3       85.8       22.1       43.9  
Change in assets and liabilities
    (91.6 )     (99.0 )     (215.3 )     137.4       90.4  
 
Net cash provided by (used in) operating activities
    179.0       60.4       (109.8 )     124.0       108.6  
 
                                       
CASH FLOWS FROM INVESTING ACTIVITIES
                                       
 
                                       
Purchases of property, plant and equipment
    (65.5 )     (68.3 )     (71.1 )     (43.9 )     (43.3 )
Proceeds from sale of property, plant and equipment
                      1.2        
Purchases of intangible assets
    (43.0 )     (41.4 )     (49.4 )     (40.3 )     (35.4 )
 
Net cash used in investing activities
    (108.5 )     (109.7 )     (120.5 )     (83.0 )     (78.7 )
 
                                       
CASH FLOWS FROM FINANCING ACTIVITIES
                                       
 
                                       
Dividend paid
    (107.4 )     (0.4 )                 (86.5 )
Net proceeds from issuance of shares and stock options
    0.5       1.4       6.5       0.1       0.4  
Net proceeds from other long-term debt
                19.9             0.1  
Redemption and/or repayment of debt
          (1.3 )     (1.1 )     (1.7 )     (1.7 )
 
Net cash provided by (used in) financing activities
    (106.9 )     (0.3 )     25.3       (1.6 )     (87.7 )
 
                                       
 
Net cash flows
    (36.4 )     (49.6 )     (205.0 )     39.4       (57.8 )
 
                                       
Effect of changes in exchange rates on cash
    0.2       1.7       1.2       2.4       (0.5 )
 
Net increase (decrease) in cash & cash equivalents
    (36.2 )     (47.9 )     (203.8 )     41.8       (58.3 )

 


 

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.
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 sales transactions, forecasted purchase transactions and accounts receivable/accounts payable. The Company hedges these exposures through the use of foreign exchange options and forward contracts. The use of a mix of foreign exchange options and forward contracts is aimed at reflecting the likelihood of the transactions occurring.

 


 

It is the Company’s policy to hedge material remeasurement exposures. These net exposures from certain monetary assets and liabilities in non-functional currencies are hedged with forward contracts.
As of June 28, 2009 EUR 36.9 million loss of other comprehensive income, net of taxes, represents the total anticipated loss to be charged to net sales, and EUR 1.2 million gain represents the total anticipated gain to be released to cost of sales when the forecasted revenue and purchase transactions occur.
Statutory Interim Report
While the financial figures included in these consolidated financial statements have been computed in accordance with International Financial Reporting Standards (IFRSs) applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs. The Board of Management expects to publish the Statutory Interim Financial Report that complies with IAS 34 on July 24, 2009.
ASML — Reconciliation U.S. GAAP — IFRS 1
Net income
                                 
    Three months ended,     Six months ended,  
(in thousands EUR)   Jun 29, 2008     Jun 28, 2009     Jun 29, 2008     Jun 28, 2009  
 
Net income (loss) under U.S. GAAP
    191,977       (103,953 )     337,100       (221,144 )
Share-based payments (see Note 1)
    245       1,396       (518 )     897  
Capitalization of development costs (see Note 2)
    18,649       21,760       40,330       33,275  
Income taxes (see Note 3)
    (380 )     (458 )     39       (2,058 )
 
Net income (loss) under IFRS
    210,491       (81,255 )     376,951       (189,030 )
Shareholders’ equity
                                         
    Jun 29,     Sep 28,     Dec 31,     Mar 29,     Jun 28,  
(in thousands EUR)   2008     2008     2008     2009     2009  
 
Shareholders’ equity under U.S. GAAP
    2,060,575       2,122,848       1,988,769       1,795,951       1,691,240  
Share-based payments (see Note 1)
    (3,266 )     (7,904 )     (6,537 )     (7,088 )     (4,918 )
Capitalization of development costs (see Note 2)
    176,818       193,780       201,717       215,452       235,945  
Income taxes (see Note 3)
    8,478       5,969       4,794       3,361       2,797  
 
Shareholders’ equity under IFRS
    2,242,605       2,314,693       2,188,743       2,007,676       1,925,064  
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. SFAS 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.