StatutoryAnnual Report2013

Statutory Annual Report 2013

1 Board of Management
2 Supervisory Board
3 Supervisory Board Report
11 Corporate Governance Paragraph
33 Management Board Report
57 Directors' Responsibility Statement
59 Consolidated Financial Statements
131 Company Financial Statements
143 Other Information
147 Information and Investor Relations
149 ASML Worldwide Contact Information
150 Definitions

AsummaryofallabbreviationsandtechnicaltermsusedinthisStatutoryAnnualReportissetforthonpage150.

Thisreportcomprisesregulatedinformationwithinthemeaningofarticles1:1and5:25coftheDutchFMSA.

Inthisreportthename"ASML"issometimesusedforconvenienceincontextswherereference ismadetoASMLHoldingN.V.and/oranyofitssubsidiariesingeneral.Thenameisalsousedwhereno usefulpurposeisservedbyidentifyingtheparticularcompanyorcompanies.

Board of Management¹

Peter T.F.M. Wennink (1957)

President,ChiefExecutiveOfficerand MemberoftheBoardofManagement Appointedin1999 Dutchnationality

Martin A. van den Brink (1957)

President,ChiefProductandTechnologyOfficerand MemberoftheBoardofManagement Appointedin1999 Dutchnationality

Frits J. van Hout (1960)

ExecutiveVicePresident,ChiefProgramOfficerand MemberoftheBoardofManagement Appointedin2009 Dutchnationality

Frédéric J.M. Schneider-Maunoury (1961)

ExecutiveVicePresident,ChiefOperationsOfficerand MemberoftheBoardofManagement Appointedin2010 Frenchnationality

¹⁾ Mr.Nickl'sappointmenttoASML'sBoardofManagementissubjecttothenotificationoftheAGM,scheduledtobeheldonApril23,2014.

Supervisory Board

Arthur P.M. van der Poel (1948)

Chairman FormermemberoftheBoardofManagementofRoyalPhilipsElectronicsN.V. Firstappointed2004 Currenttermuntil2016 Dutchnationality

Fritz W. Fröhlich (1942)

ViceChairman FormerDeputyChairmanandChiefFinancialOfficerofAkzoNobelN.V. Firstappointed2004 Currenttermuntil2014 Germannationality

Hendrika (Ieke) C.J. van den Burg (1952)

MemberoftheDutchMonitoringCommitteeCorporateGovernanceCode Firstappointed2005 Currenttermuntil2015 Dutchnationality

OB Bilous (1938)

FormerGeneralManagerandVicePresidentWorldwideManufacturingofIBM'sMicroelectronicsDivision Firstappointed2005 Currenttermuntil2014 UnitedStatesnationality

Pauline F.M. van der Meer Mohr (1960)

PresidentoftheExecutiveBoardoftheErasmusUniversityRotterdam Firstappointed2009 Currenttermuntil2017 Dutchnationality

Wolfgang H. Ziebart (1950)

GroupEngineeringDirectorofJaguarLandRoverLtd. Firstappointed2009 Currenttermuntil2017 Germannationality

Clara (Carla) M.S. Smits-Nusteling (1966)

FormerCFOandmemberoftheBoardofManagementofRoyalKPNN.V. Firstappointed2013 Currenttermuntil2017 Dutchnationality

Douglas A. Grose (1950)

FormerCEOofGlobalFoundries Firstappointed2013 Currenttermuntil2017 UnitedStatesnationality

Supervisory Board Report

Inthissectionofthe2013StatutoryAnnualReportofASML,theSupervisoryBoardreportsonitsactivitiesin2013,and ontheinformationrequiredtobeprovidedinthisreportbasedontheCode.

Overview of 2013

2013wasanexcitingyearforASMLwiththeexecutionoftheCCIPandtheintegrationofCymerintoASMLafterthe acquisitionwassuccessfullycompletedonMay30,2013.Thesetransactionswereenteredintowiththemainpurpose toacceleratethedevelopmentofnextgenerationlithographytechnologies.In2013,importantprogresswasmade withtheEUVtechnology.ASMLalsodeliverednextgenerationimmersionsystemssupportingmultiplepatterning requirementsforthenextfewyears.Thevalueofholisticlithoproductsfurtherincreased.Alsofromafinancialpointof view,2013wasagoodyearforASMLwithnetsalesofEUR5,245.3millionandnetincomeofEUR1,193.8million.In 2013,ASMLreturnedmorethanEUR500millioncashtoshareholdersthroughcombineddividendandsharebuybacks. BoththeCCIPaswellastheintegrationofCymerresultedinadditionalprojectsandworkforASML,requiringadditional technicallyskilledandqualifiedresources,whichremainsakeychallengeforASML.TheASMLworkforcegrewto 13,225employees(FTE)in2013.

TheSupervisoryBoardextensivelydiscussedthesetopicsthroughouttheyear.Anotherimportanttopicin2013forthe SupervisoryBoardanditsSelectionandNominationCommittee,werethepreparationsfortheleadershipchangeswithin theBoardofManagement,aspublishedinApril2013.

OnJuly1,2013,Mr.E.(Eric)MeuricesteppeddownasASML'sPresidentandCEO,andatthatsamedate,Mr.P.T.F.M. (Peter)WenninkwasappointedPresidentandCEO,whereasMr.M.A.(Martin)vandenBrinkwasappointedPresident andCTO,thisconstitutingdualleadershipinASML.Mr.MeuriceagreedtocontinueasChairmanofASMLHolding N.V.toactasadvisertoASML'sleadershipandSupervisoryBoarduntiltheendofhisemploymentcontractonMarch 31,2014,ensuringasmoothandcomprehensivetransition.Mr.WenninkcontinuedtoactasinterimCFO,untilthe appointmentofhissuccessor.PerDecember1,2013,Mr.W.U.(Wolfgang)NickljoinedASMLassuccessorofMr. WenninkandwasappointedEVPandCFOofASML.ThenotificationofhisappointmentasmemberofASML'sBoardof Managementforaperiodoffouryearswillbeputonthe2014AGMagenda.

InviewoftheexpirationofMr.F.J.M.(Frederic)Schneider-Maunoury'sfirstfouryeartermasmemberofASML'sBoard ofManagementperthe2014AGM,theSupervisoryBoarddiscussedtheextensionofhistenureasmemberofASML's BoardofManagement.InviewofhisvaluablecontributiontoASML'sBoardofManagementinthepastfouryears,the SupervisoryBoarddecidedtoextendMr.Schneider-Maunoury'smembershiponASML'sBoardofManagementfor anothertermoffouryears,subjecttonotificationtothe2014AGM.

TheemploymentagreementsofMessrs.WenninkandVandenBrinkwereamendedperJuly1,2013tochangetheir appointmentfromanindefinitetermtoadefinitetermoffouryears.Thereappointmenttermwillcomeintoeffectupon notificationtothe2014AGM.Inaddition,anotheramendmenttotheemploymentagreementswastheinclusionofa severancepayment,ifany,notexceedingoneyearbasesalary.BothamendmentsweremadetocomplywiththeCode. InlightofthereappointmentofMr.Schneider-MaunouryandtheappointmentofMr.Nicklperthe2014AGM,bothhave beenofferedmanagementservicesagreements,inlinewiththeLawonManagementandSupervision,whichcameinto effectonJanuary1,2013.

Anothertopicin2013wasthecompositionoftheSupervisoryBoard.Ms.C.M.S.(Carla)Smits-NustelingandMr.D.A. (Doug)GrosewereappointedasnewmembersoftheSupervisoryBoardatthe2013AGM.

FurtherdiscussionstookplaceinlightofthesuccessionplanningofthemembersoftheSupervisoryBoardwhowill retirebasedupontheSupervisoryBoard'srotationschedulein2014andsubsequentyears.Forthefulfillmentof vacanciesintheSupervisoryBoardseveralfactorsaretakenintoconsideration,amongotherstheintentionincluded intheSupervisoryBoard'sprofileforatleast30percentrepresentationofeachgenderinASML'sSupervisoryBoard, whichwasreachedwiththeappointmentofMs.Smits-Nusteling,butalsospecificrequirementsincludedintheprofiles forthesepositions.Importantrequirementsrelatetorelevantknowledgeofandexperiencewithlithographyforthe semiconductorindustry.

Meetings and Activities of the Supervisory Board

TheSupervisoryBoardheldsix-scheduled-physicalmeetingsin2013;threescheduledconferencecallswereheld forthepurposeofdiscussingthequarterlyresultsandthepressreleasesrelatedthereto.Inaddition,severalinformal meetingsandtelephonecallstookplaceamongSupervisoryBoardand/orBoardofManagementmemberstoconsult witheachotheronvarioustopics.

ThephysicalSupervisoryBoardmeetingsandmeetingsoftheSupervisoryBoardCommitteesareheldduring severaldays,thusensuringsufficienttimeforthemeetingsanddiscussiononspecificthemes,suchasmanagement development,operationalperformanceandstrategy.

Tocontinuouslystayabreastofthedevelopmentsinthesemiconductormarket,theBoardofManagementprovides theSupervisoryBoardeachmeetingwithanoverviewofthemarketsituationatthatmoment,expectationsforthe nearfuture,thedevelopmentofASML'ssharepriceandinvestor/analystfeedbackonASML.Othertopicsaddressed duringthe2013SupervisoryBoardmeetingswereamongothersASML'sbusinessrisks;investorrelations;business priorities;thecorporateobjectivesandtargets;andmanagementdevelopmentandsuccessionplanning.Twiceperyear, thebudgetisreviewedbytheSupervisoryBoard.

TheSupervisoryBoardalsoreviewedASML'sCorporateResponsibilitystrategy,includingtheactions(tobe) implementedtoachievethetargetssetwithrespecttotheCorporateResponsibilitystrategy.CorporateResponsibility wasalsoaddressedintheRemunerationCommitteeassustainabilityisalongtermqualitativetargetforthemembersof theBoardofManagement.

TheattendanceratebothoftheSupervisoryBoardmeetingsandofthemeetingsofthefourCommitteeswascloseto 100percent.

Ingeneral,aftereachSupervisoryBoardmeeting,theSupervisoryBoardmembersmeetintersetodiscussforexample thefunctioningoftheSupervisoryBoardandoftheBoardofManagementanditsmembers;andanyothertopics deemedimportantatthattime,suchastheimminentchangesinthecompositionoftheSupervisoryBoard.

DuringallphysicalmeetingsoftheSupervisoryBoard,mostBoardofManagementmemberswerepresent.Alsooutside themeetings,membersoftheSupervisoryBoardanditsCommitteesinteractedregularlywiththeBoardofManagement andtheindividualmembers.Also,severalinformalmeetingsandtelephonecallstookplaceamongSupervisoryBoard memberstoconsultwitheachotheronvarioustopics.

Annually,theSupervisoryBoardandeachofitsCommitteesperformanevaluationrelatedtothefunctioningofthe SupervisoryBoard,itsCommittees,theindividualmembersandtheSupervisoryBoard'schairman,aswellasthe functioningoftheBoardofManagementandtheindividualmembers.Alsothecompositionofbothbodiesisaddressed. In2013,anin-depthevaluationoftheSupervisoryBoardwasperformedthistimebyanexternalpartybymeansofa questionnaireandindividualinterviews,baseduponwhichareportoftheresultswasprepared.Itemsassessedand subsequentlydiscussedincluded:compositionoftheSupervisoryBoard;themeetinganddecision-makingprocesses, theindividualcontributionandtherelationshipwithBoardofManagement.Inadditiontotheself-assessmentbythe SupervisoryBoardmembers,inputwasalsosolicitedandreceivedfromthemembersoftheBoardofManagement,the CompanySecretaryandtheexternalauditor.

ThemainconclusionsoftheevaluationwereextensivelydiscussedintheSupervisoryBoard,andsubsequently,tothe extentrelevant,inthevariouscommitteesandwiththeBoardofManagement.

TheSupervisoryBoardhasembeddedthisevaluationprocessinitsprocessesandactivitiesastheSupervisoryBoard attachesgreatvaluetotheevaluations.Theyensurecontinuousfocusonthequalityoftheactivities,compositionand functioningoftheSupervisoryBoardanditsCommitteesandrelationshipwiththeBoardofManagement.

Furthermore,asisdoneeachyear,alsoin2013adelegationoftheSupervisoryBoardmettwicewiththeWorks CouncilofASMLNetherlandsB.V.Thetopicsofthesemeetingsgenerallyevolvearoundimportantinternalandexternal developmentsrelevantforASMLandtheiremployees,ASML'sfinancialpositionandASML'sstrategy.In2013,focus wasonEUVandtheoverallperformanceofASML;thecompositionoftheSupervisoryBoard;theremunerationof theBoardofManagement;andthechangesinleadershipstructureanditsimpactontheASMLorganization.The SupervisoryBoardconsidersthesemeetingsavaluablecontributiontoitsactivitiesforASML.

Forfurtherdetailsonthestructure,organizationandresponsibilitiesoftheSupervisoryBoard,referenceismadetothe CorporateGovernanceParagraphofthisStatutoryAnnualReport.

Composition of the Supervisory Board

Currently,theSupervisoryBoardconsistsofeightmembers.FouroftheSupervisoryBoardmembershavetheDutch nationality,twomembershavetheGermannationalityandtwomembershavetheUnitedStatesnationality.Threeofthe eightSupervisoryBoardmembersarefemale.Theaverageageis62years,wherebytheagesvaryfrom47to75years.

In2013,Messrs.WesterburgenandSiegleretiredfromtheSupervisoryBoardpertheAGMofApril24,2013.Inaddition, Mmes.VandenBurgandVanderMeerMohraswellasMr.Ziebartalsoretiredbyrotation.InlinewiththeSupervisory Board'srotationschedule,Ms.VandenBurgwasreappointedforamaximumperiodoftwoyears,andMs.VanderMeer MohrandMr.Ziebartwerereappointedforamaximumtermoffouryears.WithrespecttothereappointmentofMmes. VandenBurgandVanderMeerMohr,ASML'sWorksCouncilhadastrengthenedrecommendationright.Mr.Grose andMs.Smits-NustelingwerefirstappointedpertheAGMonApril24,2013.Messrs.BilousandFröhlichwillretireby rotationperthe2014AGM.Mr.Fröhlichindicatedthatheisavailableforreappointment.

Supervisory Board Committees

TheSupervisoryBoardhasinstalledfourCommittees:anAuditCommittee,RemunerationCommittee,Selectionand NominationCommittee,andTechnologyandStrategyCommittee.EachCommitteeoperatespursuanttoitscharter, whichisbasedontherulesandregulationsoftheCode,butalsoreflectspracticesdevelopedovertheyears.The responsibilitiesandauthoritiesoftheCommitteesarebasedonamandateoftheSupervisoryBoard,whereasthe SupervisoryBoardretainsfullresponsibilityfortheactivitiesofthefourCommittees.TheCommitteespreparethe decisionstobemadebythefullSupervisoryBoard,eachinitsownfieldofexpertise.

IntheplenarySupervisoryBoardmeetings,theChairmanofeachCommitteeprovidesareport,verballyand/orin writing,onthetopicsdiscussedduringtheCommitteemeetings.Inaddition,theminutesoftheCommitteemeetingsare availableforallSupervisoryBoardmembers,sothattheyhaveallinformationsufficienttounderstandASML'scurrent stateofaffairs,thusensuringthatthefullSupervisoryBoardisabletomaketheappropriatedecisions.

Audit Committee

ThecurrentmembersofASML'sAuditCommitteeareMr.Fröhlich(Chairman),Mr.VanderPoelandMs.Smits-Nusteling. ThemembersoftheAuditCommitteeareallindependent,non-executivemembersoftheSupervisoryBoard.

In2013,theAuditCommitteemetfourtimesandheldfourconferencecalls.Threecallswereheldtodiscussthe quarterlyresultsandtherelatedpressrelease;onecallwasheldforthepurposeofdiscussingtheresultsoftheyearendauditsUSGAAPandIFRS-EU.

TheAuditCommitteefocusedin2013especiallyonthepurchasepriceallocationwithrespecttotheacquisitionof Cymer,theimpactoftheacquisitiononASML'sfinancialpositionandresultsofoperations,andanumberofprojects resultingfromtheexecutionofASML'sfinancingandreturnpolicy,suchastherenewalandincreaseofthecreditfacility, theissueofthe2023Eurobond,thepartialtenderoftheexisting2017EurobondandtheShareBuybackprogram.A recurringtopicfortheAuditCommitteeisrevenuerecognition.

Ingeneral,theAuditCommitteecontinuouslymonitorstheactivitiesoftheCorporateRisk&Assurance(InternalAudit) departmentwithrespecttoASML'sriskmanagement.Inaddition,theAuditCommitteealsomonitorsASML'sinternal controlsoverfinancialreportinginlightofSection404oftheSarbanes-OxleyActof2002.TheAuditCommitteereviews andapprovestheauditplansoftheinternalandexternalauditorsandmonitorstheirauditactivities.Annually,theAudit CommitteereviewsASML'staxstrategy,taxsystemsandtaxplanning;investorrelations;ASML'smanagementoftheIT landscape;andtheactivitiesofASML'sDisclosureCommittee.

TheAuditCommittee(andSupervisoryBoard)agreewithASML'sconservativeprincipleswithrespecttoitsfinancing policyandreturnpolicy,whichhelpsASMLtorespondproperlytothehighlycyclicalnatureofthesemiconductor equipmentindustry.

Withrespecttotheexternalauditor'sManagementLetteroverthefinancialyear2012,theAuditCommitteeconfirms thatnoremarksweremadeintheManagementLetterthatneedtobementionedinthisreport.

Ascommunicatedinthe2012AnnualReport,theAuditCommitteeresolvedtoconductextensiveassessmentswith respecttotheperformanceoftheexternalauditoronabi-annualbasis.Asthelatestextensiveassessmentwas conductedend2011/early2012,theAuditCommitteeagainconductedanextensiveassessmentover2013bymeans ofquestionnairestomembersoftheAuditCommitteeandASMLseniormanagement.Aspartoftheevaluationprocess, thefollowingitemsweretakenintoconsiderationamongothers:thequalityoftheauditworkandauditor'sreport,the sufficiencyandfulfillmentoftheauditengagement,theindependenceoftheauditors,theexpertiseandcomposition oftheauditteam,andtheauditfee.AreportofthefindingswasdiscussedbytheAuditCommitteewiththeexternal auditor.Basedonthepositiveoutcomeoftheevaluation,theannualrequesttoreappointtheauditorwillbeproposed forapprovaltothe2014AGM.

Inanumberofmeetings,thechangesinthelawsrelatedtotheauditprofessionandtheconsequencesforexternal auditorsingeneralandforASML'sexternalauditorspecificallywerediscussed.

Inordertocomplywiththemandatoryfirmrotation,anewauditorwillbeselectedin2014.Theappointmentofanew auditorperJanuary1,2016,willbeproposedforapprovaltothe2015AGM.

Selection and Nomination Committee

ThecurrentmembersofASML'sSNCareMr.Bilous(Chairman),Mr.Grose,Mr.FröhlichandMr.VanderPoel.TheSNC heldthreescheduledmeetingsandseveraladditionalmeetingsonanad-hocbasisin2013.

Asindicatedabove,theSNCpreparedthedecisionfortheSupervisoryBoardfortheleadershipsuccessionwithin theBoardofManagement.TheappointmentofthePresidentsconstituteddualleadershipwithinASML.TheSNCalso preparedthedecisionwithrespecttotheextensionofMr.Schneider-Maunoury'sappointmenttermasmemberofthe BoardofManagement.ThecompositionoftheSupervisoryBoardwasalsoextensivelydiscussed,andattentionwas paidtothefuturecompositionoftheSupervisoryBoard.Inaddition,theSNCpreparedtheselectionofMr.Nicklas successorofMr.WenninkasCFOofASML.

Otherdiscussionitemsin2013werethe'regular'topicssuchasmanagementdevelopmentandtalentmanagement;and thefunctioningoftheindividualmembersoftheSupervisoryBoardandtheBoardofManagement.

TheSelectionandNominationCommitteeisalsoresponsibleformonitoringCorporateGovernancedevelopments.

Remuneration Committee

ThecurrentmembersofASML'sRemunerationCommitteeareMr.Ziebart(Chairman),Ms.VandenBurgandMs.Vander MeerMohr.

In2013,theRemunerationCommitteemetthreetimesinscheduledmeetings,eitherinpersonorviaconference call,andseveraladditionalmeetingswereheldonanad-hocbasisin2013.Animportantitemdiscussedinthefirst monthsof2013wastherevisionofthe2010RemunerationPolicy.Aworkinggroup,inwhichalsoanexternalexpert participated,preparedthe2014RemunerationPolicyasapprovedbytheSupervisoryBoardandadoptedbytheAGM onApril24,2013.ReferenceismadetotheparagraphbelowontheremunerationfortheBoardofManagementandthe outlineofthe2013RemunerationReportformoredetailsonthistopic.

Othertopicsdiscussedin2013included:theshareandoptionplansfortheemployees;thetargetsandremuneration packagefortheBoardofManagement,theterminationofMr.Meurice'semploymentcontractperMarch31,2014and theconsequencesthereofforhisremunerationpackage,theremunerationforthePresidentsandforthenewCFO, benchmarkonSBremuneration,andthe2013RemunerationReport.DetailsoftheremunerationpackageofMr.Meurice canbefoundinNote31oftheConsolidatedFinancialStatements.

IncooperationwiththeAuditCommitteeandtheTechnologyandStrategyCommittee,theRemunerationCommittee reviewedandproposedtotheSupervisoryBoardthe2013targetsfortheBoardofManagementandalsoprovidedits recommendationstotheSupervisoryBoardwithrespecttotheachievementofthe2013targetsandrelatedappropriate compensationlevelsfortheBoardofManagementmembersoverthefinancialyear2013.

AnexternaladvisorinthefieldofremunerationformembersofBoardsofManagementassistedtheRemuneration Committeeinitsactivities.ThisexternaladvisordoesnotprovideremunerationadvicetotheBoardofManagement.

Technology and Strategy Committee

ThecurrentmembersofASML'sTechnologyandStrategyCommitteeareMr.Bilous(Chairman),Mr.Grose,Mr.Van derPoel,andMr.Ziebart.Inaddition,theTechnologyandStrategyCommitteemayappointoneormoreadvisors fromwithinand/orfromoutsideASML.In2013fourexternaladvisorsandthreeinternaladvisorsparticipatedinthe Committeemeetings.TheadvisorstotheTechnologyandStrategyCommitteemaybeinvitedasgueststo(partsof) themeetingsoftheCommittee,butarenotentitledtovoteinthemeetings.TheTechnologyandStrategyCommittee heldfourscheduledmeetingseitherinpersonorbyconferencecallin2013.Ingeneral,thephysicalmeetingslasta fullday.OnemeetingwasheldforthepurposeofdiscussingthetechnologytargetsfortheBoardofManagement;the achievementsrelatedtheretowerediscussedinanothermeeting.

TheTechnologyandStrategyCommitteereviewsandadvisestheSupervisoryBoardonspecificASMLtechnology mattersimportantatthattimeanddiscussestheproposalsforASML'sfutureproduct-andtechnologystrategies.The TechnologyandStrategyCommitteeisinstrumentalinpreparingthedecisionsand/oradvicefortheSupervisoryBoard relatedtothesetopics.Importanttopicsthisyearweretheexecutionandimplementationofprogramsandinitiatives resultingfromtheCCIPandCymer.BesidesEUV,othertopicsofdiscussionincludedmattersrelatedtoImmersion, 450mm,DUVandApplications.

ForafurtherdescriptionoftheresponsibilitiesoftheSupervisoryBoardCommittees,referenceismadetotheCorporate GovernanceParagraphofthisStatutoryAnnualReport.

Remuneration of the Supervisory Board

TheremunerationoftheSupervisoryBoardmembersisdescribedinNote31totheConsolidatedFinancialStatements. InadditiontotheirfeeasmemberoftheSupervisoryBoard,SupervisoryBoardmembersalsoreceiveafeeforeach Committeemembership,aswellasanetcostallowance.TheSupervisoryBoardremunerationisnotdependenton ASML'sfinancialresults.NoneofthemembersoftheSupervisoryBoardownsharesoroptionsonASML'sshares.We hadnotgrantedanyloansto,norhadwegrantedanyguaranteesinfavorof,anyofthemembersoftheSupervisory Board.

Composition of the Board of Management

TheBoardofManagementcurrentlyconsistsoffourmembers.Asmentionedearlierinthisreport,theSupervisoryBoard extendedtheappointmenttermofMr.VanHoutforfourmoreconsecutiveyearspertheAGM2013.TheSupervisory BoardwillextendtheappointmenttermofMr.Schneider-Maunouryforfouryearsuponnotificationtothe2014AGM. Mr.NicklstartedasEVPandCFOperDecember1,2013,andwillbeappointedasmemberoftheBoardofManagement uponnotificationtothe2014AGM.ForfurtherdetailsandabiographyofthemembersoftheBoardofManagement, seepage1ofthisStatutoryAnnualReport.

Remuneration of the Board of Management

General

In2013,theGeneralMeetingofShareholdersadoptedanupdateoftheRemunerationPolicyfortheBoardof ManagementperJanuary1,2014.For2013,the2010RemunerationPolicystillapplies.TheRemunerationCommittee overseesthedevelopmentandimplementationofcompensationandbenefitprogramsfortheBoardofManagement, aswellasthecompensationlevelsfortheindividualmembersoftheBoardofManagement.Itprovidesadvicetothe BoardofManagementonthepolicyandimplementationofthecompensationforseniormanagementbelowtheBoardof Management.

TheRemunerationCommitteereviewsthecorporateobjectivesandtargetsrelevanttothecompensationofallmembers oftheBoardofManagement.ItensuresthattargetsfortheBoardofManagementandseniormanagementarealigned andsupportthelong-termstrategyofASML.Thesetargetsrelatetotechnologyleadershipcombinedwithcustomer andsupplierintimacy,highlyefficientprocessesandentrepreneurialpeople,thethreemainpillarsoflongtermvalue creationatASML.TheRemunerationCommitteecooperateswiththeAuditCommitteeandtheTechnologyand StrategyCommitteeinsettingthetargets.TheRemunerationCommitteeevaluatestheachievementsoftheBoardof Managementwithrespecttothoseobjectivesandtargets(again,incooperationwiththeAuditCommitteeandthe TechnologyandStrategyCommittee),anditprovidesrecommendationstotheSupervisoryBoardontheresulting compensationlevelsforthemembersoftheBoardofManagement.Detailsoftheremunerationtargetsandtheirlinkto theASMLlongtermstrategycanbefoundinthe2013RemunerationReport.

Theexternalauditorperformsagreed-uponproceduresonthetargetsachievedtoassesscompliancewiththe RemunerationPolicy.

TheSupervisoryBoardhasthediscretionarypowertoadjustvariableremunerationcomponentsbothupwardsand downwardsifthesewould,intheopinionoftheSupervisoryBoard,produceanunfairresultduetoextraordinary circumstancesduringtheperiodinwhichthepredeterminedperformancecriteriahavebeenorshouldhavebeen achieved(UltimumRemedium-provision11.2.10).Besidesthis,theSupervisoryBoardmayrecoverfromtheBoardof Managementanyvariableremunerationawardedonthebasisofincorrectfinancialorotherdata(clawbackclauseprovision11.2.11).

Outline 2013 remuneration report

Insummary,totalremunerationformembersoftheBoardofManagementisderivedfromthemedianlevelofthe appropriatetopexecutivepaymarket(areferencemarketconsistingofagroupofEuropeancompaniesmainlyinthe ICTandTechnologysector)andconsistsof(i)basesalary;(ii)shorttermperformanceincentives(incash);(iii)longterm performanceincentives(inshares)and(iv)otherbenefits.Thepayoutofthecashincentiveandvestingofperformance sharesisdependentontheachievementofpredeterminedfinancialandnon-financialperformancecriteria.

Byapplyingthefollowingratioasdefinedinthe2010RemunerationPolicy,thestructureofTotalDirectCompensationis aimedatbalancingshortandlongtermperformanceandtoalignremunerationwithlongtermvaluecreation:100-75-80 fortheCEO,wherebasesalaryis100;thetargetshorttermperformancerelatedcashincentiveis75(asofJuly1,2013, STIforCEOis60);longtermperformancesharesare80.FortheothermembersoftheBoardofManagementthisratio is100-60-80.Themaximumpayout-incaseofoverachievementofpre-definedtargets-fortheperformancesharesis 146.25percentforallmembersoftheBoardofManagement.

Gratitude to ASML Employees

TheSupervisoryBoardwouldliketothankandrecognizeallASMLemployeesincludingthetemporaryworkforce whohavebeenabletoagainachievesomuchthispastyear:theprogresswithEUV,theeffortsmadetosupplytothe demandandthegreatoverallresultsofASML.TheSupervisoryBoardacknowledgesthattheexecutionoftheCCIP andtheadditionalworkresultingfromthemergerwithCymerrequiresextraeffortsfromtheASMLemployees,andalso realizesthepressurethattheextremeswingsindemandandinthecontinuingdemandforleading-edgetechnology putonASMLemployees.Therefore,theSupervisoryBoardwantstoexpressitsappreciationforalltheeffortsand achievementsofASMLemployeesthroughouttheseyears.

Information on Supervisory Board Members

PresentedbelowisthepersonaldataofallSupervisoryBoardmembersthatisrequiredtobedisclosedinthisreportin ordertocomplywiththeCode.

OB Bilous Gender :Male Age :75 Profession :FormerGeneralManagerandVicePresidentWorldwide ManufacturingofIBM'sMicroelectronicsDivision Principalposition :Retired Nationality :UnitedStates Otherrelevantpositions :BoardmemberNantero,Inc. Firstappointed :2005 Currenttermuntil :2014 H.C.J. van den Burg Gender :Female Age :61 Profession :FormermemberoftheEuropeanParliament Principalposition :MemberoftheDutchMonitoringCommitteeCorporateGovernance Code Nationality :Dutch Otherrelevantpositions :ChairpersonoftheMonitoringFoundationDutchInsurance Companies,memberoftheAdvisoryBoardsoftheDutchData-ProtectionAuthorityandtheDutchNationalRegisterSupervisory Directors,memberoftheAdvisoryScientificCommitteeEuropean SystemicRiskBoard(ECBFrankfurt)andmemberoftheAdvisory CouncilInternationalAffairsCommissionHumanRights(Dutch MinistryForeignAffairs) Firstappointed :2005 Currenttermuntil :2015 F.W. Fröhlich Gender :Male Age :71 Profession :FormerDeputyChairmanandCFOofAkzoNobelN.V. Principalposition :Retired Nationality :German Otherrelevantpositions :ChairmanoftheSupervisoryBoardofRandstadHoldingN.V., memberoftheSupervisoryBoardsofAllianzNederlandN.V.and RexelSA,memberoftheBoardofDirectorsofPrysmianGroup. Firstappointed :2004 Currenttermuntil :2014 D.A. Grose Gender :Male Age :63 Profession :FormerCEOofGlobalFoundries Principalposition :Retired Nationality :UnitedStates Otherrelevantpositions :MemberoftheBoardofDirectorsofSBAMaterials,Inc. Firstappointed :2013 Currenttermuntil :2017 P.F.M. van der Meer Mohr Gender :Female Age :53 Profession :PresidentoftheExecutiveBoardoftheErasmusUniversity Rotterdam Nationality :Dutch Otherrelevantpositions :MemberoftheSupervisoryBoardsofRoyalDSMN.V.and DuisenbergSchoolofFinance,chairpersonoftheExecutiveBoardof theFulbrightCenter Firstappointed :2009 Currenttermuntil :2017

C.M.S. Smits-Nusteling Gender :Female Age :47

Nationality :Dutch Firstappointed :2013 Currenttermuntil :2017

A.P.M. van der Poel

Gender :Male Age :65

Principalposition :Retired Nationality :Dutch

Firstappointed :2004 Currenttermuntil :2016

W.H. Ziebart

Gender :Male Age :64 Nationality :German Firstappointed :2009 Currenttermuntil :2017

CompanySecretary :Mr.R.F.Roelofs Appointed :2002

Appointed :2004/2013

TheSupervisoryBoard, Veldhoven,February11,2014

Profession :FormerCFOandmemberoftheBoardofManagementofRoyalKPN N.V. Otherrelevantpositions :MemberoftheSupervisoryBoardofTele2AB

Profession :FormermemberoftheBoardofManagementofRoyalPhilips Electronics Otherrelevantpositions :MemberoftheBoardofDirectorsofGemaltoHoldingN.V.,member oftheSupervisoryBoardofRoyalHaskoningDHVB.V.andChairman oftheSupervisoryBoardofBDRThermea

Profession :FormerPresidentandCEOofInfineonTechnologiesA.G. Principalposition :GroupEngineeringDirector,JaguarLandRoverLimited Otherrelevantpositions :ChairmanoftheSupervisoryBoardofNordexSE

DeputyCompanySecretary :Ms.G.C.M.Keizer/Ms.S.A.M.tenHaaf

Corporate Governance Paragraph

I. General¹

ASMLHoldingN.V.isapubliclimitedliabilitycompany,withregisteredseatinVeldhoven,theNetherlandsandis governedbyDutchlaw.Since1995,ASML'ssharesarelistedonNYSEEuronextAmsterdamandalsoonNASDAQ.

WecontinuouslymonitorandassessapplicableDutch,U.S.andotherrelevantcorporategovernancecodes,rules,and regulations.ASMLissubjecttotheCode.BecausewearealsolistedonNASDAQ,wearerequiredtocomplywiththe U.S.Sarbanes-OxleyActof2002,aswellasNASDAQlistingrules,andtherulesandregulationspromulgatedbythe SEC.

ForthefulltextoftheCode,pleaserefertothewebsitewww.commissiecorporategovernance.nl.Forthefulltextof theU.S.Sarbanes-OxleyActof2002,aswellasNASDAQlistingrules,andtherulesandregulationspromulgatedby theSEC,seewww.sec.gov/about/laws/soa2002.pdf,http://nasdaq.cchwallstreet.com,andwww.sec.gov/about.shtml respectively.

ASML'sSupervisoryBoardandBoardofManagement,whoareresponsibleforourcorporategovernancestructure, willcontinuetheireffortstoensurethatourpracticesandprocedurescomplywithbothU.S.andDutchcorporate governancerequirements.Inthisparagraph,weaddressourcorporategovernancestructure,therebyreferringto theprinciplesandbestpracticessetforthintheCode,aswellaswiththeapplicablelawswithrespecttocorporate governance.OurSupervisoryBoardandBoardofManagementareoftheopinionthatASMLcomplieswithall recommendationsintheCode.However,wehaveprovidedexplanationswithrespecttoonerecommendation,asour practicewithrespecttothatrecommendationcouldbeperceivedasnon-compliantwiththeCode.

MaterialchangesinthecorporategovernancestructureofASMLand/orinitscompliancewiththeCodewillbe discussedatourAGMasaseparateagendaitem.

1ThisCorporateGovernanceParagraphalsoincludestheinformationthatisrequiredtobedisclosedpursuanttoarticle2aoftheDecreeof23December2004regardingfurtherprovisionsonthe substanceofannualreports.

II. Board of Management

Role and Procedure

ASML'sBoardofManagementisresponsibleformanagingASML,underthechairmanshipofitsPresidentandCEO andthePresidentandCTO,constitutingdualleadership.ThecurrentBoardofManagementcomprisesfourmembers. Mr.NickljoinedASMLasEVPandCFOperDecember1,2013;theSupervisoryBoardintendstoappointMr.Nicklas memberofASML'sBoardofManagementforaperiodoffouryearsafterthenotificationtotheAGMonApril23,2014.

AlthoughthevariousmanagementtasksaredividedamongthemembersoftheBoardofManagement,theBoardof ManagementremainscollectivelyresponsibleforthemanagementofASML,thedeploymentofourstrategy,ourrisk profileandpolicies,theachievementofourobjectives,ourresultsandthecorporatesocialresponsibilityaspects relevanttoASML.

Infulfillingitsmanagementtasksandresponsibilities,theBoardofManagementconsiderstheinterestsofASMLand thebusinessconnectedwithit,aswellastheinterestsofourstakeholders.TheBoardofManagementisaccountableto theSupervisoryBoardandtheGeneralMeetingofShareholdersfortheperformanceofitsmanagementtasks.

ASMLhasatwo-tierboardstructure:theSupervisoryBoardsupervisesandadvisestheBoardofManagementin theexecutionofitstasksandresponsibilities.TheBoardofManagementprovidestheSupervisoryBoardwithall information,inwritingorotherwise,necessaryfortheSupervisoryBoardtofulfillitsduties.Besidestheinformation providedintheregularmeetings,theBoardofManagementkeepstheSupervisoryBoardfrequentlyinformedon developmentsrelatingtoASML'sbusiness,financials,operations,andindustrydevelopmentsingeneral.

ImportantdecisionsoftheBoardofManagementthatrequiretheapprovaloftheSupervisoryBoardare,amongothers:

•theoperationalandfinancialobjectives;
•thestrategydesignedtoachievetheobjectives;
•theparameterstobeappliedinrelationtothestrategytoachievetheobjectives;and
•corporatesocialresponsibilityissuesthatarerelevanttoASML.

Themainelementsoftheoperationalandfinancialobjectives,thestrategytoachievetheobjectives,andthe parameterstobeappliedareincludedintheReportoftheBoardofManagement.Inthe"riskfactors"sectionofthe 2013StatutoryAnnualReport,wedescribethesensitivityofourresultstobothexternalaswellasinternalfactorsand variables.

TheRulesofProcedurefortheBoardofManagementcontain-amongothertopics-thegeneralresponsibilitiesof theBoardofManagement,therelationshipwiththeSupervisoryBoardandvariousstakeholders,thedecisionmaking processwithintheBoardofManagement,andalsothelogisticssurroundingthemeetings.TheRulesofProcedureare postedintheCorporateGovernancesectiononourwebsite.

Appointment, Other Functions

MembersoftheBoardofManagementareappointedbytheSupervisoryBoarduponrecommendationbyASML's SelectionandNominationCommitteeanduponnotificationtotheGeneralMeetingofShareholders.Membersofthe BoardofManagementareappointedforaperiodoffouryears,whereafterreappointmentispossible.

OnJuly1,2013,Mr.E.(Eric)MeuricesteppeddownasASML'sPresidentandCEO,andatthatsamedate,Mr.P.T.F.M. (Peter)WenninkwasappointedPresidentandCEO,whereasMr.M.A.(Martin)vandenBrinkwasappointedPresident andCTO,thisconstitutingdualleadershipinASML.Mr.MeuriceagreedtocontinueasChairmanofASMLHolding N.V.andtoactasadvisertoASML'sleadershipandSupervisoryBoarduntiltheendofhisemploymentcontracton March31,2014,ensuringasmoothandcomprehensivetransition.Mr.WenninkcontinuedtoactasinterimCFO,until theappointmentofhissuccessor.Mr.NickljoinedASMLperDecember1,2013,assuccessorofMr.Wenninkandwas appointedEVPandCFOofASML.Asstatedabove,thenotificationofhisintendedappointmentasmemberofASML's BoardofManagementforaperiodoffouryearswillbeputonthe2014AGMagenda.

TheSupervisoryBoardmaysuspendanddismissmembersoftheBoardofManagement,butonlyafterconsultingthe GeneralMeetingofShareholders.

PursuanttonewlyadoptedDutchlegislationwhichenteredintoforceonJanuary1,2013,amemberoftheBoardof ManagementmaynotbeaSupervisoryBoardmemberinmorethantwootherqualifiedlegalentities("LargeCompany"). AmemberoftheBoardofManagementmayneverbethechairmanofasupervisoryboardofaLargeCompany.Board ofManagementmembersmayonlyacceptaSupervisoryBoardmembershipofanotherLargeCompanyafterhaving obtainedpriorapprovalfromtheSupervisoryBoard.MembersoftheBoardofManagementarealsorequiredtonotify theSupervisoryBoardofotherimportantfunctionsheldortobeheldbythem.Currently,noBoardofManagement memberhasmorethantwoSupervisoryBoardmembershipsinotherLargecompanies.NocurrentmemberoftheBoard ofManagementischairmanofasupervisoryboardofaLargecompany.

ThissamelegislationrequiresaDutchpubliclimitedliabilitycompanyqualifyingasaLargeCompany,topursueapolicy ofhavingatleast30.0percentoftheseatsontheexecutiveboardbeheldbyeachgendertotheextenttheseseatsare heldbynaturalpersons.IntheselectionprocessofthenewCFOandintendedmemberoftheBoardofManagementin 2013,ASMLtookthisruleintoconsideration,aswellasotherrequiredskillsandcompetencesofthecandidate.Incase offutureappointmentsofmembersoftheBoardofManagement,ASMLshallcontinuetotakethis30.0percentruleinto consideration.

Internal Risk Management and Control Systems, External Factors

TheBoardofManagementisresponsibleforensuringthatASMLcomplieswithapplicablelegislationandregulations. ItisalsoresponsibleforthefinancingofASMLandformanagingtheinternalandexternalrisksrelatedtoitsbusiness activities.

TheestablishmentofASML'sinternalriskmanagementandcontrolsystemisbasedontheidentificationofexternal andinternalriskfactorsthatcouldinfluencetheoperational,businesscontinuityandfinancialobjectivesofASMLand containsasystemofmonitoring,reporting,andoperationalreviews.

Tohelpidentifyingrisks,ASMLusesaformalriskmanagementapproach,consistingofasetofrisksdefinitions(ASML RiskLandscape)whicharereviewedanddiscussedbytheCRSBonaquarterlybasis.TheCRSBwasintroducedduring thecourseof2013,ischairedbytheChiefOperationsOfficerandconsistsofASMLseniormanagement,includingthe CEOandCFO.Basedonthereview,actionsareinitiatedtofurtherenhanceASML'sriskmitigation.Theseactionsare monitoredviatheCRSB.OutcomesofthereviewsandprogressupdatesarereportedtotheAuditCommitteeannually.

TheestablishmentofASML'sinternalcontrolandriskmanagementsystemsisbasedontheidentificationofexternal andinternalriskfactorsthatcouldinfluenceouroperationalandfinancialobjectivesandcontainsasystemof monitoring,reportingandoperationalreviews.Allmaterialriskmanagementactivitieshavebeendiscussedwiththe AuditCommitteeandtheSupervisoryBoard.ForasummaryofASML'sRiskFactors,werefertoourManagementBoard ReportinthisStatutoryAnnualReport.

ASMLdoesnotranktheindividualrisksidentifiedinourManagementBoardReport,asASMLisoftheopinionthat doingsodefiesthepurposeofacomprehensiveriskassessmentanditwouldbearbitraryofnaturesinceallrisks mentionedhavesignificantrelevanceforASMLanditsbusiness.

ASMLpublishestwoannualreportsinrespectofthefinancialyear2013("2013AnnualReports"):thisStatutoryAnnual ReportinaccordancewiththeDutchlegalrequirementsandIFRS-EUandanAnnualReportonForm20-Finaccordance withU.S.securitieslaws,basedonU.S.GAAP.BothAnnualReportsdescribethesameriskfactorsthatarespecificto thesemiconductorindustry,ASMLandourshares.ASMLalsoprovidessensitivityanalysesbyproviding:

•anarrativeexplanationofourFinancialStatements;
•thecontextwithinwhichfinancialinformationshouldbeanalyzed;and

•informationaboutthequality,andpotentialvariability,ofourearningsandcashflow.Inour"InControlStatement"(as partoftheDirector'sResponsibilityStatement),asincludedinthisStatutoryAnnualReport,theBoardofManagement addressesourinternalriskmanagementandcontrolsystems.

Withrespecttotheprocessofdraftingannualreports,wehaveextensiveguidelinesforthelay-outandthecontent ofourreports.Theseguidelinesareprimarilybasedonapplicablelaws.FortheStatutoryAnnualReportandthe ConsolidatedCondensedInterimFinancialStatements,ASMLfollowstherequirementsofDutchlawandregulations, includingpreparationoftheConsolidatedFinancialStatementsinaccordancewithIFRS-EU.FortheAnnualReport onForm20-F,ASMLappliestherequirementsoftheU.S.SecuritiesandExchangeActof1934,andpreparesthe FinancialStatementsincludedthereininaccordancewithU.S.GAAP.Withrespecttothepreparationprocessofthese andtheotherfinancialreports,ASMLappliesinternalprocedurestosafeguardcompletenessandcorrectnessofsuch informationaspartofitsdisclosurecontrolsandprocedures.

ASML'sInternalControlCommittee,comprisingamongothersthreemembersoftheDisclosureCommittee,advises ASML'sDisclosureCommitteeabouttheirassessmentofASML'sinternalcontroloverfinancialreporting.TheChairman oftheInternalControlCommitteereportstotheAuditCommitteeandtotheBoardofManagementontheprogressof theassessments.

ASML'sDisclosureCommittee,consistingofvariousmembersofseniormanagementfromdifferentfunctionalareas withinASML,reportstoandassistsASML'sCEOandCFOinthemaintenance,reviewandevaluationofdisclosure controlsandprocedures.TheDisclosureCommittee'smainresponsibilityistoensurecompliancewithapplicable disclosurerequirementsarisingunderUnitedStatesandDutchlawandapplicablestockexchangerules.TheChairman oftheDisclosureCommitteereportstotheAuditCommitteeandtotheCEOandCFOonthetopicsdiscussedinthe DisclosureCommitteemeetingsandadvisesASML'sCEOandCFOaboutitsassessmentofASML'sdisclosurecontrols andproceduresandinternalcontroloverfinancialreporting.

Code of Conduct

PartofASML'sriskmanagementandcontrolsystemisASML'sCodeofConduct.TheCodeofConductdescribeswhat ASMLstandsforandbelievesin,andistranslatedintospecificpoliciesandproceduresthatcontainrulesandguidance oncompliancewithexternalandinternalrules,laws,controlsandprocesses.

Concernsandcomplaintscanbesubmittedthroughvariousinternalchannelsaswellasanexternalparty,which providesforanonymousreporting.

CodeofConductrelatedtopics,aswellassubmittedcomplaints,ifany,arediscussedintheAuditCommittee.

TheCodeofConductandtheReportingProcedure(includingwhistleblowerprocedures)areavailableontheCorporate Governancesectionofourwebsite.

Remuneration of the Board of Management

WithrespecttotheremunerationoftheBoardofManagement,theSupervisoryBoardisoftheopinionthatthe2010 RemunerationPolicywasdraftedinaccordancewiththeCode,andthattheexecutionofthePolicyisalsoinline withtheCode,withthe(potential)exceptionasmentionedmorespecificallyattheendofthisCorporateGovernance Paragraph.Atthe2013AGManewRemunerationPolicyoftheBoardofManagement("2014RemunerationPolicy")was adoptedbytheshareholderswhichwillcomeintoforceperJanuary2014.

Performance Criteria

EventhoughthisisnotadeviationfromtheCode,astheCodestipulatesthatnotdisclosingtheperformancecriteria (bestpracticeprovisions11.2.13f)andg)becauseofcompetitionsensitivenessisjustified,weherebywanttoprovide ourreasonsfornotprovidingallinformationasincludedinthebestpracticeprovisionsmentionedabove.

ASMLprovidesthequantitativeperformancecriteria,asummaryandaccountofthemethodstodeterminethe achievementoftheperformancecriteria,andalsotheultimateachievementlevelofthequantitativeandqualitative performancecriteria.However,wecannotprovidetheexactperformancecriteriadata,northelevelsofachievement perperformancecriterion,asthisconcernshighlycompetitiveinformation,suchastargetsrelatedtoourtechnology, marketposition,etc.TheSupervisoryBoarddeemsititsresponsibilitytosettheactualtargetsandtodeterminethe levelofachievementofthesetargetsforthevariablepartoftheremunerationoftheBoardofManagement.TheAGM endorsedthispositioninitsmeetingonMarch23,2006forthe2010RemunerationPolicy,andonApril24,2013forthe 2014RemunerationPolicy,effectiveperJanuary1,2014.

FormoredetailsabouttheBoardofManagement'sremuneration,itscomposition,andotherrelevantelements, referenceismadetothe2010RemunerationPolicyandtheRemunerationReportforthe2013financialyear(both publishedonourwebsite),theReportoftheSupervisoryBoardandNote31ofthisStatutoryAnnualReport.

Theexternalauditorperformsagreed-uponproceduresonthetargetsachievedtoassesscompliancewiththe RemunerationPolicy.

Insider Trading

WithrespecttotradinginASMLfinancialinstruments,ASMLemployees,ASMLBoardofManagementmembersand ASMLSupervisoryBoardmembersareboundbyASML'sInsiderTradingRules,whicharepublishedonourwebsite. TheASMLInsiderTradingRulesstipulate,amongotheritems,thatmembersoftheBoardofManagementmaynottrade duringthetwomonthsprecedingthepublicationoftheannualresults,andduringthethreeweeksbeforepublicationof quarterlyresults.Inaddition,employeesofASML,includingthemembersoftheBoardofManagement,maynotperform transactionsinASMLfinancialinstrumentsduringtheopenperiodswhentheyhaveinsideinformation.

Indemnification

ASML'sArticlesofAssociationprovidefortheindemnificationofthemembersoftheBoardofManagementagainst claimsthatareadirectresultoftheirtasksasmembersoftheBoardofManagement,providedthatsuchclaimis notattributabletowillfulmisconductorintentionalrecklessnessofsuchmemberoftheBoardofManagement.The SupervisoryBoardhasfurtherimplementedtheindemnificationoftheBoardofManagementmembersbymeansof separateindemnificationagreementsforeachBoardofManagementmember.

Conflicts of Interest

ConflictsofinterestproceduresareincorporatedintheBoardofManagement'sRulesofProcedureandreflectthe principleandbestpracticeprovisionsoftheCodewithrespecttoconflictsofinterest.

Therehavebeennotransactionsduring2013,andtherearecurrentlynotransactions,betweenASMLoranyofour subsidiaries,andanysignificantshareholderandanydirectororofficeroranyrelativeorspousethereof,otherthan ordinarycoursecompensationarrangements.

III. Supervisory Board

Role and Procedure

Asmentionedbefore,ASML'sSupervisoryBoardsupervisesthepoliciesoftheBoardofManagementandthegeneral courseofaffairsofASMLanditssubsidiaries.OurSupervisoryBoardalsosupportstheBoardofManagementwithits advice.AsASMLhasandintendstokeepatwo-tierstructure,theSupervisoryBoardisaseparateandindependent bodyfromtheBoardofManagementandfromASML.UnderDutchlawandpertheCode,SupervisoryBoardmembers cannotbemembersoftheBoardofManagementandcannotbe(former)officersoremployeesofASML.

Infulfillingitsroleandresponsibilities,theSupervisoryBoardtakesintoconsiderationtheinterestsofASMLandits subsidiaries,aswellastherelevantinterestsofASML'sstakeholders.TheSupervisoryBoardsupervisesandadvisesthe BoardofManagementinperformingitstasks,withaparticularfocuson:

•theachievementofASML'sobjectives;
•ASML'scorporatestrategyandthemanagementofrisksinherenttoASML'sbusinessactivities;
•thestructureandoperationofinternalriskmanagementandcontrolsystems;
•thefinancialreportingprocess;
•compliancewithapplicablelegislationandregulations;
•relationshipwithshareholders;and
•thecorporatesocialresponsibilityissuesimportantforASML.

Majormanagementdecisions,suchasASML'sstrategy,majorinvestmentsandbudget,requiretheapprovalofthe SupervisoryBoard.TheSupervisoryBoardselectsandappointsnewBoardofManagementmembers,preparesthe remunerationpolicyfortheBoardofManagement,anddecidesontheremunerationfortheindividualmembersofthe BoardofManagement.Also,theSupervisoryBoardisthebodythatnominatesnewSupervisoryBoardcandidatesfor appointmentandsubmitsremunerationproposalsfortheSupervisoryBoardmemberstotheAGM.

TheSupervisoryBoard,throughitsSelectionandNominationCommittee,closelyfollowsthedevelopmentsinthe areaofcorporategovernanceandtheapplicabilityoftherelevantcorporategovernancerulesforASML.Foramore detaileddescriptionontheSupervisoryBoard'sactivitiesintheareaofcorporategovernancereferenceismadetothe SupervisoryBoardReportasincludedinthisStatutoryAnnualReport.

Meetings and Activities of the Supervisory Board

TheSupervisoryBoardheldsixphysicalmeetingsin2013.Inaddition,threeconferencecallswereheldtospecifically discussthequarterlyresults.

Duringseveralmeetingsin2013,theSupervisoryBoarddiscussedextensivelytheacquisitionofCymer,theexecution oftheCCIP,theleadershipchangesandEUV.Othertopicswere:thestrategy,thefinancialposition,financingpolicy, businessrisks,investorrelations,sustainability,budgetandcorporatetargets.

AsalsodescribedintheSupervisoryBoardReport,membersoftheSupervisoryBoardalsointeractwithBoardof ManagementmembersandwiththeircolleagueSupervisoryBoardmembersoutsidetheregularmeetingsorconference calls.

DuringallphysicalmeetingsoftheSupervisoryBoardusuallyallBoardofManagementmembersarepresent.Ingeneral attheendofeachmeeting,theSupervisoryBoardmeetsintersetodiscusstopicsrelatedto,amongstothers,the compositionandfunctioningoftheBoardofManagementandtheSupervisoryBoard,thefunctioningoftheindividual membersofbothbodies,andtherelationshipbetweenthesebodiesanditsindividualmembers.

Asiscommonpracticeeachyear,theSupervisoryBoardconductedanevaluationin2013withrespecttothe functioningofthefullSupervisoryBoard.AlsoeachCommitteeperformedaself-evaluationwithrespecttoits functioning.FormoredetailedinformationonthistopicreferenceismadetotheSupervisoryBoardReport.

MembersoftheSupervisoryBoardhavesemi-annualmeetingswiththeWorksCouncilintheNetherlandstodiscussour strategy,financialsituationandanyothertopicthatisdeemedrelevantatthattime.

FormoredetailedinformationonthemeetingsandactivitiesoftheSupervisoryBoardin2013,referenceismadetothe SupervisoryBoardReport.

The Rules of Procedure

TheRulesofProcedureoftheSupervisoryBoardcontainrequirementsbasedontheCode,ontheSarbanes-OxleyAct andonanyotherapplicablelaws,aswellascorporategovernancepracticesdevelopedbytheSupervisoryBoardover thepastyears.TheRulesofProcedurearesubjecttoregularreviewinviewofthecontinuouscorporategovernance developments.ItemsincludeamongothersresponsibilitiesoftheSupervisoryBoardanditscommittees,composition oftheSupervisoryBoardanditsCommittees,logisticssurroundingthemeetings,meetingattendanceofSupervisory BoardmembersandrotationschedulefortheSupervisoryBoardmembers.

TheRulesofProcedurealsocontainthechartersofthefourCommittees.TheSupervisoryBoardhasassignedcertain ofitstasksandresponsibilitiestothefourCommittees;however,theplenarySupervisoryBoardremainsresponsiblefor thefulfillmentofthesetasksandresponsibilities.TheSupervisoryBoard-anditsCommittees-mayobtaininformation fromofficersandexternaladvisorsofASML,ifnecessaryfortheexecutionofitstasks.EspeciallytheCommittees frequentlycalluponexternaladvisors,whoassisttheCommitteesinpreparingtherecommendationstobedecided uponbythefullSupervisoryBoard.

TheRulesofProcedure,aswellasthechartersofthefourCommitteesareregularlyreviewedand,ifneeded,amended. ChangesintheSupervisoryBoard'sRulesofProcedureneedtobeapprovedbythefullSupervisoryBoard.Changes inthechartersoftheCommitteesareapprovedbytheCommitteeconcerned.TheAuditCommitteecharterisreviewed annually,tocheckwhetherthecharterstillcomplieswiththeapplicablerulesandregulations,especiallythoserelating totheSarbanes-OxleyAct.

Independence

TheSupervisoryBoardisoftheopinionthatitscurrentmembersareallindependentasdefinedbytheCode.Neitherthe ChairmannoranyothermemberoftheSupervisoryBoardisaformermemberofASML'sBoardofManagement,orhas anotherrelationshipwithASMLwhichcanbejudged"notindependent"ofASML.

Potentiallyhowever,theSupervisoryBoardcouldbe'forced'todeviatefromtheCode'sindependencedefinitionwhen lookingforthemostsuitablecandidateforavacancy.Forexample,inthecasewheretheprofileforavacancyrequires particularknowledgeoforexperienceinthesemiconductor-andrelated-industries.Thesemiconductorindustryhas relativelyfewplayers,andthereforetheSupervisoryBoardmaywant-orneed-tonominatecandidatesforappointment totheAGMwhodonotfullycomplywiththeindependencecriteriaaslistedintheCode.Inthosecircumstances,ASML andthecandidatewillensurethatanysuchbusinessrelationshipdoesnotcompromisethecandidate'sindependence.

Expertise, Composition, Appointment

TheSupervisoryBoardcurrentlyconsistsofeightmembers,theminimumbeingthreemembers.TheSupervisoryBoard determinesthenumberofSupervisoryBoardmembersrequiredfortheperformanceofitsfunctions.

PertheAGMheldin2013,Messrs.W.T.(William)SiegleandJ.W.B.(Jos)Westerburgenretiredbyrotation.Inaddition, Mr.W.H.(Wolfgang)Ziebart,Mmes.H.C.J.(leke)vandenBurgandP.F.M.(Pauline)vanderMeerMohrretiredbyrotation andwerereappointed.AstheirinitialappointmentswerebasedontheWorksCouncil'senhancedrecommendation right,thereappointmentsofMmes.VandenBurgandVanderMeerMohrin2013werealsobasedonthisenhanced recommendationright.

Mr.D.A.(Doug)GroseandMs.C.M.S.(Carla)Smits-NustelingwereappointedpertheAGMheldin2013foraperiodof fouryears.

In2014,Messrs.O.(Orest)BilousandF.W.(Fritz)Fröhlichwillretirebyrotationbasedupontherotationscheduleofthe SupervisoryBoard.Mr.Fröhlichhasindicatedtobeavailableforreappointment.

ThecurrentmembersofASML'sSupervisoryBoardshowadiversemixwithrespecttobackground,nationality,age, genderandexpertise,inlinewiththecurrentprofiledrawnupbytheSupervisoryBoard.

TheprofileoftheSupervisoryBoardaimsforaninternationalandadequatecompositionreflectingtheglobalbusiness activitiesofASML,aswellasforanadequatelevelofexperienceinfinancial,economic,technological,social,andlegal aspectsofinternationalbusiness.Incaseof(re)appointments,theSelectionandNominationCommitteecheckswhether thecandidatesfitintheSupervisoryBoard'sprofile.

SimilartotherulesforthecompositionoftheBoardofManagementdescribedabove,thenewlegislationeffectiveper January1,2013alsorequiresthatthecompositionoftheSupervisoryBoardreflectstherequirementofarepresentation of30.0percentofeachgender.WiththeappointmentofMs.Smits-Nustelingperthe2013AGM,thecurrentratiois37.5 percentfemalemembersand62.5percentmalemembers.

Wearestillsubjecttothelawapplicabletolargecorporations("structuurregime").Beingsuchacompany,members oftheSupervisoryBoardareappointedbytheGeneralMeetingofShareholdersbasedonnominationsproposedby theSupervisoryBoard.TheSupervisoryBoardinformstheAGMandtheWorksCouncilaboutupcomingresignations byrotationattheAGMintheyearprecedingtheactualresignation(s)byrotationtoensurethattheGeneralMeetingof ShareholdersandtheWorksCouncilhavesufficientopportunitytorecommendcandidatesfortheupcomingvacancies. TheSupervisoryBoardhastherighttorejecttheproposedrecommendations.Furthermore,theWorksCouncilhas anenhancedrighttomakerecommendationsforone-thirdofthemembersoftheSupervisoryBoard.Theenhanced recommendationrightimpliesthattheSupervisoryBoardmayonlyrejecttheWorksCouncil'srecommendationsforthe followingreasons:(i)iftherelevantpersonisunsuitableor(ii)iftheSupervisoryBoardwouldnotbedulycomposed iftherecommendedpersonwereappointedasSupervisoryBoardmember.Ifnoagreementontherecommended person(s)canbereachedbetweentheSupervisoryBoardandtheWorksCouncil,theSupervisoryBoardmayrequest theEnterpriseChamberoftheAmsterdamCourtofAppealtodeclarethattheSupervisoryBoard'sobjectionis legitimate.AnydecisionoftheEnterpriseChamberonthismatterisnon-appealable.

Asmentionedabove,Mmes.VandenBurgandVanderMeerMohrwerenominatedand(re)appointedpertheWorks Council'senhancedrecommendationright.

NominationsbytheSupervisoryBoardmaybeoverruledbyaresolutionattheGeneralMeetingofShareholderswith anabsolutemajorityofthevotes,representingatleastone-thirdofASML'soutstandingsharecapital.Ifthevotescast infavorofsucharesolutiondonotrepresentatleastone-thirdofthetotaloutstandingcapital,anewshareholders' meetingcanbeconvenedatwhichthenominationcanbeoverruledbyanabsolutemajority.IftheGeneralMeetingof Shareholdersdoesnotappointthepersonnominatedanddoesnotrejectthenomination,theSupervisoryBoardwill appointthenominatedperson.

FornewlyappointedSupervisoryBoardmembers,weprepareanintroductionprogramofwhichthemaintopicsare: ASML'sorganization,operations,strategy,industry,technology,ASML'sfinancialandlegalaffairs,andASML'shuman resources.SupervisoryBoardmembersareregularlygiventheopportunitytofollowtechnicaltutorialstomaintain andincreasetheirknowledgeofASML'severprogressingtechnology.Inaddition,specifictrainingisalsoprovidedfor newCommitteemembersbasedonindividualneeds.Annually,theSupervisoryBoardand/orCommitteesmembers determinetheirneedforfurthertrainingonspecifictopics.

SupervisoryBoardmembersserveforamaximumtermoffouryearsfromthedateoftheirappointment,orashorter periodaspertheSupervisoryBoard'srotationschedule.Memberscanbereappointed,providedthattheirentiretermof officedoesnotexceed12years.TherotationscheduleisavailableintheCorporateGovernancesectiononourwebsite.

TheGeneralMeetingofShareholdersmay,byanabsolutemajorityofthevotesrepresentingatleastone-thirdof thetotaloutstandingcapital,dismisstheSupervisoryBoardinitsentiretyforlackofconfidence.Insuchcase,the EnterpriseChamberoftheAmsterdamCourtofAppealshallappointoneormoreSupervisoryBoardmembersatthe requestoftheBoardofManagement.

SimilartotherulesfortheBoardofManagementdescribedabove,pursuanttonewlyadoptedDutchlegislationeffective perJanuary1,2013,restrictionswillapplyastotheoverallnumberofexecutiveboardpositions(includingaonetier board)andsupervisoryboardpositionsthatamemberofthesupervisoryboard(oranon-executivedirectorincase ofaone-tierboard)ofaLargeCompany,mayhold.Pursuanttothisnewlegislation,apersonmaynotbeamember oftheSupervisoryBoardifheorsheholdsmorethanfivesupervisorypositionswithLargeCompanies.Actingasa chairmanofthesupervisoryboardorasupervisorybodyestablishedbythearticlesofassociationor,incaseofaonetierboard,chairmanoftheexecutiveboard,ofaLargeCompanywillcounttwice.Currently,noneoftheSupervisory Boardmembersactsinviolationofthisnewlegislation.

FordetailedinformationonASML'sSupervisoryBoardmembers,referenceismadetotheSupervisoryBoardReport.

Role of the Chairman of the Supervisory Board and the Company Secretary

Mr.VanderPoelistheChairmanofASML'sSupervisoryBoard;Mr.FröhlichitsVice-Chairman.Theroleand responsibilitiesoftheChairmanoftheSupervisoryBoardaredescribedinitsRulesofProcedure.TheChairman determinestheagendaoftheSupervisoryBoardmeetings,heactsasthemaincontactbetweentheSupervisoryBoard andtheBoardofManagementandensuresorderlyandefficientproceedingsattheGeneralMeetingofShareholders. TheChairmanwillamongothersalsoensurethat:

themembersoftheSupervisoryBoardfollowanintroductionandtrainingprogramforSupervisoryBoardmembers;
themembersoftheSupervisoryBoardreceiveallinformationnecessaryfortheproperperformanceoftheirdutieson atimelybasis;
thereissufficienttimeforconsultationanddecisionmakingbytheSupervisoryBoard;
theCommitteesfunctionproperly;
theperformanceoftheBoardofManagementmembersandtheSupervisoryBoardmembersisassessedatleast onceayear;and
theSupervisoryBoardhaspropercontactwiththeBoardofManagementandtheWorksCouncil.

TheCompanySecretaryassiststheSupervisoryBoardintheperformanceofitsduties;ensuresthatthecorrect proceduresarefollowed;andthattheSupervisoryBoardactsinaccordancewithitslegalandstatutoryobligations.The CompanySecretaryassiststheChairmanoftheSupervisoryBoardintheorganizationoftheaffairsoftheSupervisory BoardanditsCommittees.TheCompanySecretaryisappointedbyandmayalsobedismissedbytheBoardof ManagementafterpriorapprovalfromtheSupervisoryBoard.TheCompanySecretaryisassistedbyadeputyCompany Secretary.

Composition and Role of the Four Committees of the Supervisory Board

AlthoughtheSupervisoryBoardretainsultimateresponsibility,theSupervisoryBoardhasdelegatedcertainofitstasks tothefourCommitteesoftheSupervisoryBoard.Theirrolesandfunctionsaredescribedinseparatechaptersinthe SupervisoryBoard'sRulesofProcedure.

IntheplenarySupervisoryBoardmeetings,thechairmenoftheCommitteesreportontheissuesanditemsdiscussed intheCommitteemeetings,andalsotheminutesoftheCommitteemeetingsareavailableforallSupervisoryBoard members,enablingthefullSupervisoryBoardtomaketheappropriatedecisions.

AuditCommittee

ThecurrentmembersofASML'sAuditCommitteeareMr.Fröhlich(Chairman),Mr.VanderPoelandMs.Smits-Nusteling. ThemembersoftheAuditCommitteeareallindependent,non-executivemembersoftheSupervisoryBoard.

Ingeneral,theAuditCommitteemeetsatleastfourtimesperyearandalwaysbeforethepublicationofthequarterly andannualfinancialresults.Inthefirstquarter,theAuditCommitteefocusesontheannualresults,theauditsoverthe previousfinancialyearandtheinternalandexternalauditplansfortheyearahead.Frequentlydiscussedtopicsare ASML'sinternalcontrolsandriskmanagementsystems,thetestingofinternalcontrolsoverfinancialreportinginlight ofSection404oftheSarbanes-OxleyAct,ASML'sfinancial-andcashposition,thefinancingandreturnpolicy,andthe supervisionoftheenforcementoftherelevantlegislationandregulations.

In2013,theAuditCommitteemetfourtimesinphysicalmeetingsandfourtimesviaconferencecalls.Morespecifically, in2013theAuditCommitteediscussedfrequently,thepurchasepriceallocationwithrespecttotheacquisitionof Cymer,theimpactoftheacquisitiononASML'sfinancialpositionandresultsofoperation,andanumberofprojects resultingfromtheexecutionofASML'sfinancingandreturnpolicy,suchastherenewalandincreaseofthecreditfacility, theissueofthe2023Eurobond,thepartialtenderoftheexisting2017EurobondandtheShareBuybackprogram.

ASMLprovidestheAuditCommitteewithallrelevantinformationtobeabletoadequatelyandefficientlysupervise thepreparationanddisclosureoffinancialinformationbyASML.Thisincludes,amongotherthings,informationon thestatusanddevelopmentofthe(semiconductor)markettobeabletojudgetheoutlookandbudgetforthenext sixtotwelvemonths,theapplicationofaccountingstandardsintheNetherlands,IFRS-EU,U.S.GAAP,thechoiceof accountingpoliciesandtheworkofinternalandexternalauditors.Annually,theAuditCommitteediscussesandreviews amongothersASML'sfinancingpolicyandstrategy,taxplanningpolicy,investorrelationsactivitiesandstrategy,fraud policy,andinformationandcommunicationtechnologypolicy.

TheAuditCommittee,onbehalfoftheSupervisoryBoard,reviewsandapprovesthefeesoftheexternalauditor.The AuditCommitteeisthefirstcontactfortheexternalauditoriftheexternalauditordiscoversirregularitiesinthecontent ofthefinancialreports.Asageneralrule,theexternalauditorispresentatmeetingsoftheAuditCommittee.Ingeneral, aftereachAuditCommitteemeeting,theAuditCommittee(withoutmanagementpresent)meetswiththeexternalauditor todiscusstherelationshipbetweentheAuditCommitteeandtheexternalauditor,therelationshipbetweenBoardof Managementandtheexternalauditor,andanyotherissuesdeemednecessarytobediscussed.

TheAuditCommitteegenerallyinvitesASML'sCEO,CFO,CorporateController,CorporateChiefAccountantandthe InternalAuditortoitsmeetings.Fromtimetotime,otherASMLemployeesmaybeinvitedtoAuditCommitteemeetings toaddresssubjectsthatareofimportancetotheAuditCommittee.

Mr.Fröhlich,ChairmanoftheAuditCommittee,istheSupervisoryBoard'sfinancialexpert,takingintoconsiderationhis extensivefinancialbackgroundandexperience.

RemunerationCommittee

ThecurrentmembersofASML'sRemunerationCommitteeareMr.Ziebart(Chairman),Ms.VandenBurg,andMs.Van derMeerMohr.

TheRemunerationCommitteemeetsatleasttwiceayearandmorefrequentlywhendeemednecessary.

TheRemunerationCommitteepreparesASML'sRemunerationPolicyformembersoftheBoardofManagement,and overseesthedevelopmentandimplementationoftheRemunerationPolicy.IncooperationwiththeAuditCommittee andtheTechnologyandStrategyCommittee,theRemunerationCommitteereviewsandproposestotheSupervisory BoardcorporategoalsandobjectivesrelevanttothevariablepartoftheBoardofManagement'sremuneration.Also incooperationwiththeAuditCommitteeandtheTechnologyandStrategyCommittee,theRemunerationCommittee evaluatestheperformanceofthemembersoftheBoardofManagementinviewofthosegoalsandobjectives,and -basedonthisevaluation-recommendstotheSupervisoryBoardappropriatecompensationlevelsfortheBoardof Managementmembers.

In2013,theRemunerationCommitteemetthreetimesinscheduledmeetingsandseveraltimesonanad-hocbasis. Topicsofdiscussionin2013wereamongothersthetargetsandremunerationpackagefortheBoardofManagement, the2013AppointmentAmendmentand2014TerminationAgreementwithMr.Meurice,theremunerationpackagefor Mr.Nickl,thenewCFO,theASMLstockoptionandshareplans,the2013RemunerationReportandtherevisionofthe 2010RemunerationPolicy.AnexternalexpertassiststheRemunerationCommitteeinitsactivities.Thisexpertdoesnot provideadvicetotheBoardofManagementwithrespecttomattersinthisarea.

TheRemunerationCommitteepreparedthe2013RemunerationReport,whichdescribesamongothersthemannerin whichthe2010RemunerationPolicywasimplementedandexecutedin2013,andalsotheremunerationpackageofMr. Meuriceuponterminationofhisemploymentcontract.

Mr.Ziebart,theChairmanoftheRemunerationCommitteeisneitheraformermemberofASML'sBoardofManagement, noramemberoftheBoardofManagementofanothercompany.NomemberoftheRemunerationCommitteeisa currentmemberoftheBoardofManagementofanotherDutchlistedcompany.

SelectionandNominationCommittee

ThecurrentmembersofASML'sSelectionandNominationCommitteeareMr.Bilous(Chairman),Mr.Grose,Mr.Fröhlich andMr.VanderPoel.

TheSelectionandNominationCommitteemeetsatleasttwiceayearandmorefrequentlywhendeemednecessary.

In2013,theSelectionandNominationCommitteemembersmetthreetimesformallyandseveraladditionaltimeson anad-hocbasis.MainfocusitemthisyearwasthepreparationofthedecisionfortheSupervisoryBoardwithrespect totheleadershipsuccessionwithintheBoardofManagement,andthedecisionwithrespecttotheextensionofMr. Schneider-Maunoury'sappointmenttermasmemberoftheBoardofManagement.Importanttopicsin2013further includedtheselectionofMr.NicklassuccessorofMr.WenninkasCFOofASMLandthefuturecompositionofthe SupervisoryBoardinviewofitsrotationschedule.Otherdiscussionitemsin2013werethe'regular'topicssuchas managementdevelopmentandtalentmanagementandthefunctioningoftheindividualmembersoftheSupervisory BoardandtheBoardofManagement.Inthatrespectalsotheself-assessmentsoftheSupervisoryBoardandits committeeswerediscussed.

TheSelectionandNominationCommitteeassiststheSupervisoryBoardin:

preparingtheselectioncriteriaandappointmentproceduresformembersofourSupervisoryBoardandBoardof Management;
periodicallyevaluatingthescopeandcompositionoftheBoardofManagementandtheSupervisoryBoard,and proposingtheprofileoftheSupervisoryBoardinrelationthereto;
periodicallyevaluatingthefunctioningoftheBoardofManagementandtheSupervisoryBoardandtheindividual membersofthoseboardsandreportingtheresultsthereoftotheSupervisoryBoard;and
proposing(re-)appointmentsofmembersoftheBoardofManagementandtheSupervisoryBoard,andsupervising thepolicyoftheBoardofManagementinrelationtotheselectionandappointmentcriteriaforseniormanagement.

TheSelectionandNominationCommitteefurthermorediscussesimminentcorporategovernancedevelopments,for examplethosebasedonlawproposals,butalsotheoutcomeoftheReportoftheMonitoringCommitteewithrespectto compliancewiththeCode.

TechnologyandStrategyCommittee

ThecurrentmembersoftheTechnologyandStrategyCommitteeareMr.Bilous(Chairman),Mr.Grose,Mr.VanderPoel andMr.Ziebart.

TheTechnologyandStrategyCommitteemeetsatleasttwiceayearandmorefrequentlywhendeemednecessary.

In2013,theTechnology&StrategyCommitteemetfacetofacefourtimes.Duringseveralofthesemeetingsthe technologytargets,whicharepartoftheoverallperformancetargetsset,aswellastheachievementsrelatedtothe technologytargetswerediscussed.TheTechnology&StrategyCommitteeprovidestheRemunerationCommitteewith itsadviceonthistopic.

TheTechnologyandStrategyCommitteeprovidesadvicetotheSupervisoryBoardwithrespecttoASML'stechnology strategiesandASML'stechnologyandproductroadmaps.ExternalexpertsaswellasexpertsfromwithinASMLmay actasadvisorstotheTechnologyandStrategyCommitteewithrespecttothesubjectsreviewedanddiscussedinthis Committee.

Theadvisorsdonothavevotingrights,butregularlyattendCommitteemeetings(exceptforthosemeetingsorcalls specificallydesignatedonlyforthetechnologytargetsettingsandevaluations).

Externalexpertsmayincluderepresentativesofcustomers,suppliersandpartnerstoincreasetheCommittee's understandingofthetechnologyandresearchnecessaryforthedevelopmentofASML'sleading-edgesystems.

In2013,theTechnologyandStrategyCommitteediscussedtheexecutionandimplementationofprogramsand initiativesresultingfromtheCCIPandCymer.BesidesEUV,othertopicsofdiscussionincludedmattersrelatedto Immersion,450mm,DUVandApplications.

Thein-depthtechnologydiscussionsintheTechnologyandStrategyCommitteeandthesubsequentreporting onheadlinesinthefullSupervisoryBoardincreasestheSupervisoryBoard'sunderstandingofASMLtechnology requirementsandenablestheSupervisoryBoardtoadequatelysupervisethestrategicchoicesfacingASML,including ASML'sinvestmentinresearchanddevelopment.

Conflict of Interest

Therehavebeennotransactionsduring2013,andtherearecurrentlynotransactions,betweenASMLoranyofits subsidiaries,andanysignificantshareholderandanydirectororofficeroranyrelativeorspousethereofotherthan ordinarycoursecompensationarrangements.

ConflictofinterestproceduresareincorporatedintheSupervisoryBoard'sRulesofProcedureandaddresstheprinciple andthebestpracticeprovisionsoftheCodewithrespecttoconflictsofinterest.

Remuneration of the Supervisory Board

TheAGMdeterminestheremunerationoftheSupervisoryBoardmembers;theremunerationisnotdependentonour (financial)results.In2011,theAGMadoptedtheSupervisoryBoard'sproposaltoincreasetheSupervisoryBoard's remunerationandalsoapprovedthepossibilitytoincreasethefeewithamaximumamountofEUR5,000inthecoming years,whichincreasewouldbeimplementeddependingonthecircumstances.TheSupervisoryBoarddecidedin2012 toimplementtheEUR5,000increaseinfeetobringtheSupervisoryBoard'sremunerationmoreinlinewithgeneral practiceintheNetherlands.

InadditiontotheirfeeasmemberoftheSupervisoryBoard,SupervisoryBoardmembersalsoreceiveafeeforeach Committeemembership,aswellasanetcostallowance.Inthebeginningoftheyear,theadditionalfeewhichone SupervisoryBoardmemberreceivedtocompensateforcertainobligationswhichASMLhadtowardstheUSgovernment stoppedaswewerenolongerrequiredtofulfilltheseobligations.

NomemberoftheSupervisoryBoardpersonallymaintainsabusinessrelationshipwithASMLotherthanasamemberof theSupervisoryBoard.

TheSupervisoryBoardmembersdonotreceiveASMLshares,orrightstoacquireASMLshares,aspartoftheir remuneration.SupervisoryBoardmemberswhoacquireorhaveacquiredASMLsharesorrightstoacquireASML shares,musthavetheintentiontokeeptheseforlong-terminvestmentonly.NomemberofASML'sSupervisoryBoard currentlyownsASMLsharesorrightstoacquireASMLshares.InconcludingtransactionsinASMLshares,Supervisory BoardmembersmustcomplywithASML'sInsiderTradingRules.

DetailedinformationontheSupervisoryBoard'sremunerationcanbefoundinNote31ofthe2013StatutoryFinancial Statements,includedherein.

WithrespecttotradinginASMLfinancialinstruments,theASMLInsiderTradingRulesstipulate-amongother requirements-thatmembersoftheSupervisoryBoardmaynottradeduringthetwomonthsprecedingthepublication oftheannualresults,andneitherduringthethreeweeksbeforepublicationofthequarterlyresults.Inaddition, membersoftheSupervisoryBoardmaynotperformtransactionsinASMLfinancialinstrumentsduringtheopenperiods whentheyhaveinsideinformation.ThisrequirementisnotapplicableforSupervisoryBoardmemberswhohavea managementagreementwithanindependentthirdpartyforthemanagementofherorhisfinancialinstruments.

ASMLhasnotgrantedanypersonalloans,guarantees,ortheliketomembersoftheSupervisoryBoard.ASML's ArticlesofAssociationprovidefortheindemnificationofthemembersoftheSupervisoryBoardagainstclaimsthat areadirectresultoftheirtasksasmembersoftheSupervisoryBoard,providedthatsuchclaimisnotattributableto willfulmisconductorintentionalrecklessnessofsuchSupervisoryBoardmember.ASMLhasfurtherimplementedthe indemnificationofthemembersoftheSupervisoryBoardbymeansofseparateindemnificationagreementsforeach memberoftheSupervisoryBoard.

IV. Shareholders and General Meeting of Shareholders

Powers

AGeneralMeetingofShareholdersisheldatleastonceayearandgenerallytakesplaceinVeldhoven.Inthismeeting, atleastthefollowingitemsarediscussedand/orapproved:

thewrittenreportoftheBoardofManagementcontainingthecourseofaffairsinASMLandtheconductofthe managementduringthepastfinancialyear;
theadoptionoftheAnnualReports;
thedischargeofthemembersoftheBoardofManagementinrespectoftheirmanagementduringtheprevious financialyear;
thedischargeofthemembersoftheSupervisoryBoardinrespectoftheirsupervisionduringthepreviousfinancial year;
ASML'sreservesanddividendpolicyandjustificationthereofbytheBoardofManagement;
eachmaterialchangeinthecorporategovernancestructureofASML;and
anyotheritemtheBoardofManagementortheSupervisoryBoarddeterminetoplaceontheagenda.

TheGeneralMeetingofShareholdershasfurthermore(withdueobservanceofthestatutoryprovisions)thepower:

toresolvetoamendthearticlesofassociation;
toresolvetodissolveASML;
toresolvetoissuesharesifandinsofarastheBoardofManagementhasnotbeendesignatedbytheGeneral MeetingofShareholdersforthispurpose;
toresolvetoreducetheissuedsharecapital;
toappointmembersoftheSupervisoryBoard;
towithdrawitsconfidenceintheSupervisoryBoard;
toadopttheRemunerationPolicyformembersoftheBoardofManagement;and
todeterminetheremunerationofthemembersoftheSupervisoryBoard.

TheBoardofManagementrequirestheapprovaloftheGeneralMeetingofShareholdersandtheSupervisoryBoardfor resolutionsregardingasignificantchangeintheidentityorcharacterofASMLoritsbusiness,includinginanyevent:

atransferofthebusinessorvirtuallyallofthebusinesstoathirdparty;
entryintoorterminationoflong-termcooperationbyASMLorasubsidiarywithanotherlegalentityorpartnershipor asageneralpartnerwithfullliabilityinalimitedorgeneralpartnershipifsuchcooperationortheterminationthereof isoffar-reachingsignificanceforASML;and
anacquisitionordisposalbyASMLorasubsidiaryofaparticipationinthecapitalofanothercompany,thevalue ofwhichequalsatleastonethirdoftheamountoftheassetsaccordingtotheConsolidatedBalanceSheet(inthe ConsolidatedFinancialStatementsreferredtoas"StatementofFinancialPosition")withexplanatorynotesattached totheAnnualReportasmostrecentlyadopted.

ProposalsplacedontheagendabytheSupervisoryBoard,theBoardofManagement,orbyshareholders,providedthat theyhavesubmittedtheproposalsinaccordancewiththeapplicablelegalprovisions,arediscussedandresolvedupon. Shareholdersrepresentingatleast1percentageofASML'soutstandingsharecapitalorrepresentingasharevalueofat leastEUR50.0millionareentitledtoplaceagendaitemsontheAGMagendaatthelatestsixtydaysbeforetheAGM. Althoughnewlegislation,effectiveperJanuary1,2013,hasincreasedthepercentagefrom1to3,ASML'sarticlesof associationstillreflectthe'old'requirementof1percentandEUR50.0million,andthereforethisremainsapplicablefor ASML.Abouttwoweeksbeforetheclosingofthissixtydaysterm,ASMLnotifiesitsshareholdersabouttheclosingof thetermonitswebsite.

ArecurringagendaitemisthelimitedauthorizationfortheBoardofManagementtoissue(rightsto)sharesinour capital,andtoexcludepre-emptiveshareholdersrightsforsuchissuances.Thisagendaitemincludestwoelements:1) theauthorizationtotheBoardofManagementtoissue5.0percent(rightsto)sharesofASML'sissuedsharecapitalas ofthedateofauthorization,plusanadditional5.0percentofASML'sissuedsharecapitalasofthedateofauthorization thatmaybeissuedinconnectionwithmergers,acquisitionsand/or(strategic)alliances;and2)theauthorizationto excludepre-emptiverightsinrelationtotheaboveshareissue,withamaximumof10.0percentofASML'sissuedshare capitalasofthedateofauthorization.

Asimplemajorityisrequiredfortheauthorizationtoissueshares;fortheauthorizationtoexcludethepre-emptiverights asimplemajorityisrequiredincaseatleastfiftypercentofASML'sissuedsharecapitalispresentorrepresentedat theAGM;otherwiseamajorityoftwothirdsofthevotescastisrequired.TheBoardofManagementmustobtainthe approvaloftheSupervisoryBoardfortheissuanceofASMLsharesaswellasforexcludingthepre-emptiverights.

ItisimportantforASMLtobeabletoissue(rightsto)sharesandtoexcludethepre-emptiveshareholders'rights insituationswhereitisimperativetobeabletoactquickly,forexamplewhenfinancialopportunitiesariseorwhen stock(option)plansneedtobeexecutedtoattractandretaintoptalent.Thisauthorizationhasbeenusedinthepast especiallytooptimizethefinancialpositionofASML.Giventhedynamicsoftheglobalcapitalmarkets,suchfinancing transactionsgenerallyneedtobeexecutedintheshortestwindowofopportunity.Theopportunitytoissuesharesor rightstoshares,suchasconvertiblebonds,wouldbelimitedifASMLneededaresolutionoftheGeneralMeetingof Shareholderstoissuesharesand/ortoexcludetheshareholders'pre-emptiverightsandmaythushinderthefinancial flexibilityofASML.

Anotheragendaitemin2014willbetheproposaltoadoptthedividendproposal,ascommunicatedinASML'spress releaseonJanuary22,2014.

Inadditiontodividendpayments,ASMLalsointendstoreturncashtoitsshareholdersonaregularbasisthroughshare buybacksorrepaymentofcapital,subjecttoitsactualandanticipatedlevelofcashgeneratedfromoperations,thecash requirementsforinvestmentinitsbusiness,itscurrentsharepriceandothermarketconditionsandrelevantfactors.

OnApril24,2013,theGeneralMeetingofShareholdersauthorizedtherepurchaseofuptoamaximumoftwotimes10.0 percentofourissuedsharecapitalasofthedateofauthorizationthroughOctober24,2014andthecancellationofa maximumoftwotimes10.0percentofourissuedsharecapital.

OnApril17,2013,weannouncedourintentiontorepurchaseuptoEUR1.0billionofourownshareswithinthe 2013-2014timeframe.DuringtheperiodfromApril18,2013uptoandincludingDecember31,2013,wehadpurchased 4,614,179ofoursharesforatotalamountofEUR300.0millionatanaveragepriceofEUR65.02pershare.ASML intendstocancelallsharesrepurchasedundertheShareBuybackprogram.

Alsoin2014,therequesttogranttheBoardofManagementtheauthoritytorepurchasesharesinitsowncapitalshall beputontheAGMagenda.Asimplemajorityisrequiredfortheauthorization.TheBoardofManagementmustobtain theapprovaloftheSupervisoryBoardforeachrepurchaseofASMLshares.Theauthorizationtoberequestedwillbe limitedinaccordancewiththecurrentarticlesofassociationofASMLandthelaw.Aproposaltocanceltherepurchased sharessubjecttoaresolutionoftheBoardofManagementwillalsobeputontheAGMagenda.

TheBoardofManagementorSupervisoryBoardmayconveneanEGMasoftenastheydeemnecessary.Suchmeetings mustbeheldifoneormoreshareholdersandothersentitledtoattendthemeetingsjointlyrepresentingatleastonetenthoftheissuedsharecapitalmakeawrittenrequesttothateffecttotheBoardofManagementandtheSupervisory Board,specifyingindetailtheitemstobediscussed.

Logistics of the General Meeting of Shareholders

TheconvocationdatefortheAGMislegallysetatforty-twodays,andtherecorddateattwenty-eightdaysbeforethe AGM.Thosewhoareregisteredasshareholdersattherecorddateareentitledtoattendthemeetingandtoexercise othershareholderrights.

TheBoardofManagementandSupervisoryBoardshallprovidetheshareholderswiththefactsandcircumstances relevanttotheproposedresolutions,throughanexplanationtotheagenda,aswellasthroughotherdocuments necessaryand/orhelpfulforthispurpose.AlldocumentsrelevanttotheGeneralMeetingofShareholders,includingthe agendawithexplanations,shallbepostedintheInvestorRelationsandCorporateGovernancesectionsonourwebsite. Theagendaclearlyindicateswhichagendaitemsarevotingitems,andwhichitemsarefordiscussiononly.

ASMLshareholdersmayappointaproxywhocanvoteontheirbehalfintheGeneralMeetingofShareholders.ASML alsousesaninternetproxyvotingsystem,thusfacilitatingshareholderparticipationwithouthavingtoattendinperson. Shareholderswhovotedthroughinternetproxyvotingarerequired,however,toappointaproxytoofficiallyrepresent themattheGeneralMeetingofShareholdersinperson.ASMLalsoprovidesthepossibilityforshareholderstoissue votingproxiesorvotinginstructionstoanindependentthirdparty(civillawnotary)priortotheAGM.

ResolutionspassedattheGeneralMeetingofShareholdersshallberecordedbyacivillawnotaryandco-signedbythe ChairmanofthemeetingandwillthereafterbemadeavailableonourwebsitewithintwoweeksaftertheAGM.

ThedraftminutesoftheGeneralMeetingofShareholdersareavailableviaourwebsite,andalsouponrequestvia mailore-mail,nolaterthanthreemonthsafterthemeeting.Shareholdersaregiventheopportunitytoprovidetheir commentsinthesubsequentthreemonths,andthereaftertheminutesareadoptedbytheChairmanandtheSecretary ofthemeeting.Theadoptedminutesarealsoavailableonourwebsiteand,uponrequest,viaregularmailore-mail.

Information to the Shareholders

Toensurefairdisclosure,ASMLdistributesCompanyinformationthatmayinfluencethesharepricetoshareholdersand otherpartiesinthefinancialmarketssimultaneouslyandthroughmeansthatarepublictoallinterestedparties.Incase ofbilateralcontactswithshareholders,wefollowtheprocedurerelatedtheretoaspublishedonourwebsite.

Whenourannualandquarterlyresultsarepublishedbymeansofapressrelease,interestedparties,including shareholders,canparticipatethroughconferencecalls,listentoawebcastandviewthepresentationoftheresultson ourwebsite.Thescheduleforcommunicatingtheannualfinancialresultsisingeneralpublishedthroughapressrelease andispostedonourwebsite.Inaddition,weprovideinformationtoourshareholdersatourAGM.Alsowepublish aCorporateSustainabilityReportonourwebsiteeveryyear,reportingonEnvironmental,Health,SafetyandSocial performance.

Itisourpolicytopostthepresentationsgiventoanalystsandinvestorsatinvestorconferencesonourwebsite. Informationregardingpresentationstoinvestorsandanalystsandconferencecallsareannouncedinadvanceonour website;fordetailsseeourfinancialcalendaraspublishedintheInvestorRelationssectiononourwebsite.Meetings anddiscussionswithinvestorsandanalystsshall,inprinciple,nottakeplaceshortlybeforepublicationofregular financialinformation.Wedonotassess,commentupon,orcorrectanalysts'reportsandvaluationsinadvance,other thantocommentonfactualerrors.Wedonotpayanyfeestopartiescarryingoutresearchforanalysts'reports,orfor theproductionorpublicationofanalysts'reports,andtakenoresponsibilityforthecontentofsuchreports.

AttheGeneralMeetingofShareholders,theBoardofManagementandtheSupervisoryBoardprovideshareholderswith allrequestedinformation,unlessthisiscontrarytoanoverridinginterestofASML.Ifthisshouldbethecase,theBoard ofManagementandSupervisoryBoardwillprovidetheirreasonsfornotprovidingtherequestedinformation.

Furthermore,theCorporateGovernancesectiononourwebsiteprovideslinkstowebsitesthatcontaininformation aboutASMLpublishedorfiledbyASMLinaccordancewithapplicablerulesandregulations.

ASML'sonlyanti-takeoverdeviceisthePreferenceSharesFoundation.ThemechanismsofthisFoundationare describedinmoredetailinthenextchapteronrequiredinformationArticle10TakeoverDirectiveandthe2013Annual Reports.

Relationship with Institutional Investors

ASMLfindsitimportantthatitsinstitutionalinvestorsparticipateinitsGeneralMeetingsofShareholders.Toincrease theparticipationrate,severalmeasureshavebeentakeninthepastfewyears,includingprovidinginternetproxyvoting. Inaddition,weactivelyapproachourinstitutionalinvestorstodiscusstheirparticipationattheGeneralMeetingsof Shareholders.

V. The Audit of Financial Reporting and the Position of the Internal and External Auditor Function

Financial Reporting

ASMLhascomprehensiveinternalproceduresinplaceforthepreparationandpublicationofAnnualReports,quarterly figures,andallotherfinancialinformation.TheseinternalproceduresarefrequentlydiscussedintheAuditCommittee andtheSupervisoryBoard.TheDisclosureCommitteeassiststheBoardofManagementinoverseeingASML's disclosureactivitiesandensurescompliancewithapplicabledisclosurerequirementsarisingunderU.S.andDutchlaw andregulatoryrequirements.

TheAuditCommitteereviewsandapprovestheexternalauditor'sAuditPlanfortheauditsplannedduringthefinancial year.TheAuditPlanalsoincludestheactivitiesoftheexternalauditorwithrespecttotheirreviewsofthequarterly resultsotherthantheannualaccounts.Thesereviewsarebasedonagreeduponproceduresandareapprovedbythe AuditCommittee.TheexternalauditorregularlyupdatestheAuditCommitteeontheprogressoftheauditsandother activities.

TheSupervisoryBoardhasreviewedourStatutoryAnnualReportforthefinancialyear2013aspreparedbytheBoardof Management.DeloittehasdulyexaminedourFinancialStatements,andtheAuditor'sReportisincludedintheStatutory FinancialStatements.

Appointment, Role, Assessment of the Functioning of the External Auditor, and the Auditor's Fee

InaccordancewithDutchlaw,ASML'sexternalauditorisappointedbytheGeneralMeetingofShareholdersand isnominatedforappointmentbytheSupervisoryBoarduponadvicefromtheAuditCommitteeandtheBoardof Management.ASML'scurrentexternalauditor,Deloitte,wasreappointedbythe2013AGMforthereportingyear2014. Theproposaltoreappointtheexternalauditorforthereportingyear2015,willbeputontheagendaforthe2014AGM.

Fortheyear2013,theAuditCommitteeandmanagementconductedanextensiveassessmentwithrespecttothe performanceoftheexternalauditoroverthepastyearbymeansofquestionnaires.Theresultsoftheassessmentwere discussedinameetingwiththeAuditCommitteeandtheexternalauditor.

Annually,theBoardofManagementandtheAuditCommitteeprovidetheSupervisoryBoardwithareportonthe relationshipwiththeexternalauditor.Therotationoftheresponsibleleadauditpartnereveryfiveyears,whichis relevantfortheauditor'sindependence,isscheduledfor2014,afterfinalizationofthe2013audit.Inordertocomply withthemandatoryfirmrotationwhichwillbecomeeffectiveperJanuary1,2016,theappointmentofanewauditorwill beputontheagendaofthe2015AGM.

TheexternalauditorispresentatourAGMtorespondtoquestions,ifany,fromtheshareholdersabouttheauditor's reportontheStatutoryFinancialStatements.

TheAuditCommittee,onbehalfoftheSupervisoryBoard,approvestheremunerationoftheexternalauditorafter consultationwiththeBoardofManagement.IthasbeenagreedamongthemembersoftheSupervisoryBoardandthe BoardofManagementthattheAuditCommitteehasthemostrelevantinsightandexperiencetobeabletoapproveboth items,andthereforetheSupervisoryBoardhasdelegatedtheseresponsibilitiestotheAuditCommittee.

Asof2013,theAuditCommitteewillmonitorcompliancewiththenewDutchrulesonnon-auditservicesprovidedby ourauditor,whichoutlinesstrictseparationofauditandadvisoryservicesforDutchpublicinterestentities.

InprincipletheExternalAuditorattendsallmeetingsoftheAuditCommittee,unlessthisisdeemednotnecessarybythe AuditCommittee.Thefindingsoftheexternalauditorarediscussedatthesemeetings.

TheAuditCommitteereportsonallissuesdiscussedwiththeexternalauditortotheSupervisoryBoard,includingthe externalauditor'sreportwithregardtotheauditoftheAnnualReportsaswellasthecontentoftheAnnualReports. Intheauditreport,theexternalauditorreferstothefinancialreportingrisksandissuesthatwereidentifiedduringthe audit,internalcontrolmatters,andanyothermattersrequiringcommunicationundertheauditingstandardsgenerally acceptedintheNetherlandsandintheUnitedStates.

Internal Audit Function

TheinternalauditfunctionofASMLformsoneofthekeyelementstoaddressthetopicsofriskmanagementand internalcontroloverfinancialreportingasrequiredundertheCodeandtheSarbanes-OxleyAct,respectively.To ensuretheindependenceofthisfunction,theSeniorDirectorCorporateRiskandAssurancereportstotheBoardof ManagementandtheAuditCommittee.TheAuditCommitteeisinvolvedindrawinguptheworkscheduleandaudit scopeoftheinternalauditor.TheinternalauditorregularlyprovidesupdatesonitsfindingstotheAuditCommittee.

VI. Required Information Article 10 Takeover Directive

General

TheEUTakeoverDirectiverequiresthatlistedcompaniespublishadditionalinformationprovidinginsightintodefensive structuresandmechanismswhichtheyapply.TherelevantprovisionhasbeenimplementedintoDutchlawbymeansof adecreeofApril5,2006.Pursuanttothisdecree,Dutchcompanieswhosesecuritieshavebeenadmittedtotradingon aregulatedmarkethavetoincludeinformationintheirAnnualReportwhichcouldbeofimportanceforpersonswhoare consideringtakinganinterestinthecompany.

Thisinformationcomprisesamongstotherthings:

thecapitalstructureofthecompany;
restrictionsonthetransferofsecuritiesandonvotingrights;
specialpowersconferredupontheholdersofcertainshares;
therulesgoverningtheappointmentanddismissalofboardmembersandtheamendmentofthearticlesof association;
therulesontheissuingandtherepurchasingofsharesbythecompany;
significantagreementstowhichthecompanyisapartyandwhichcontainchangeofcontrolrights(exceptwhere theirnatureissuchthattheirdisclosurewouldbeseriouslyprejudicialtothecompany);and
agreementsbetweenthecompanyanditsboardmembersoremployeesprovidingfora"goldenparachute".

InthissectiontheBoardofManagementandtheSupervisoryBoardprovideforanexplanationtotheinformation-if applicabletoASML-asrequiredundertheResolutionArticle10oftheTakeoverDirective.

Share Capital

ASML'sauthorizedsharecapitalamountstoEUR126,000,000andisdividedinto:

700,000,000CumulativePreferenceShareswithanominalvalueofEUR0.09each;
699,999,000OrdinaryShareswithanominalvalueofEUR0.09each;and
9,000OrdinarySharesBwithanominalvalueofEUR0.01each.

PerDecember31,2013,446,822,452ordinaryshareswithanominalvalueofEUR0.09eachwereissuedandfullypaid in,ofwhich5,970,118ordinarysharesareheldbyusintreasury.NoordinarysharesBandnocumulativepreference sharesareissued.

OurBoardofManagementhasthepowertoissueordinarysharesandcumulativepreferencesharesinsofarasthe BoardofManagementhasbeenauthorizedtodosobytheGeneralMeetingofShareholders(eitherbymeansofa resolutionorbyanamendmenttoourArticlesofAssociation).TheBoardofManagementrequiresapprovalofthe SupervisoryBoardforsuchanissue.TheauthorizationbytheGeneralMeetingcanonlybegrantedforacertain periodnotexceedingfiveyearsandmaybeextendedfornolongerthanfiveyearsoneachoccasion.Incasethe GeneralMeetingofShareholdershasnotauthorizedtheBoardofManagementtoissueshares,theGeneralMeetingof ShareholdersshallhavethepowertoissuesharesupontheproposaloftheBoardofManagement,providedthatthe SupervisoryBoardhasapprovedsuchproposal.

Shares Issued as a Result of the Acquisition of Cymer

ASMLandCymercompletedthemergerpursuanttowhichASMLacquiredCymeronMay30,2013.Asaresultof themerger,eachshareofCymercommonstockoutstandingimmediatelypriortothecompletionofthemergerwas convertedintotherighttoreceiveUSD20.00incashplus1.1502ASMLordinaryshares.AsperDecember31,2013, weissued36,464,576ordinarysharesforanaggregateamountofEUR2,346.7millioninrelationtotheacquisitionof Cymer.

Shares Issued in Customer Co-Investment Program

InconnectionwiththeCCIP,onSeptember12,2012,weissued62,977,877ordinarysharestotheStichtingthatholds sharesonbehalfofInteland12,595,575ordinarysharestotheStichtingthatholdssharesonbehalfofSamsungand onOctober31,2012,ASMLissued20,992,625ordinarysharestotheStichtingthatholdssharesonbehalfofTSMC. WereceivedanamountofEUR3,853.9millioninrelationtothesharesissuedundertheCCIP.Forfurtherdetailsonour CCIPseeNote36.

Synthetic Share Buyback

AttheEGMheldonSeptember7,2012,severalchangesintheArticlesofAssociationofASMLwereadopted,in connectionwiththeSyntheticShareBuybackeffectuatedinconnectionwiththeCCIP.

TheseamendmentsinsubstanceconstituteaSyntheticShareBuybackinwhichweeffectivelyrepurchased93,411,216 sharesatanaveragepriceofEUR39.91foratotalamountofEUR3,728.3million.ThedifferenceofEUR125.6million betweenthecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR3,853.9 millionrelatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuyback.

Ordinary Shares

Eachordinaryshareconsistsof900fractionalshares.Fractionalsharesentitletheholderthereoftoafractionaldividend butdonotentitletheholderthereoftovotingrights.Onlythosepersonswhoholdsharesdirectlyintheshareregister intheNetherlands,heldbyusatouraddressat5504DRVeldhoven,deRun6501,theNetherlands,orintheNewYork shareregister,heldbyJPMorganChaseBank,N.A.,P.O.Box64506,St.Paul,MN55164-0506,UnitedStates,can holdfractionalshares.PersonswhoholdordinarysharesthroughthedepositsystemundertheDutchSecuritiesBank GiroTransactionsAct(Wetgiraaleffectenverkeer;the''GiroAct'')maintainedbytheDutchcentralsecuritiesdepository EuroclearNederlandorthroughtheDTCcannotholdfractionalshares.Anordinaryshareentitlestheholderthereofto castninevotesintheGeneralMeetingofShareholders.AtourAGMheldonApril24,2013,theBoardofManagement wasauthorizedfromApril24,2013throughOctober24,2014,subjecttotheapprovaloftheSupervisoryBoard,to issuesharesand/orrightstheretorepresentinguptoamaximumof5.0percentofourissuedsharecapitalatApril24, 2013,plusanadditional5.0percentofourissuedsharecapitalatApril24,2013thatmaybeissuedinconnectionwith mergers,acquisitionsand/or(strategic)alliances.

HoldersofASML'sordinaryshareshaveapreemptiverightofsubscription,inproportiontotheaggregatenominal amountoftheordinarysharesheldbythem,toanyissuanceofordinarysharesforcash,whichrightmayberestricted orexcluded.Ordinaryshareholdershavenoproratapreemptiverightofsubscriptiontoanyordinarysharesissuedfor considerationotherthancashorordinarysharesissuedtoemployees.IfauthorizedforthispurposebytheGeneral MeetingofShareholders(eitherbymeansofaresolutionorbyanamendmenttoourArticlesofAssociation),theBoard ofManagementhasthepowersubjecttoapprovaloftheSupervisoryBoard,torestrictorexcludethepreemptiverights ofholdersofordinaryshares.AtourAGMheldonApril24,2013,theBoardofManagementwasauthorizedfromApril 24,2013throughOctober24,2014,subjecttoapprovaloftheSupervisoryBoard,torestrictorexcludepreemptive rightsofholdersofordinarysharesuptoamaximumof10.0percentofourissuedsharecapitalatApril24,2013.With thisauthorization,thecorrespondingauthorizationgrantedattheEGMheldonSeptember7,2012,ceasedtoapplyto theextentnotalreadyused.

Wemayrepurchaseourissuedordinarysharesatanytime,subjecttocompliancewiththerequirementsofDutchlaw andourArticlesofAssociation.AnysuchrepurchasesareandremainsubjecttotheapprovaloftheSupervisoryBoard andtheauthorizationofshareholdersatASML'sAGM,whichauthorizationmaynotbeformorethan18months.Atthe AGMheldonApril24,2013,theBoardofManagementhasbeenauthorized,subjecttoSupervisoryBoardapproval,to repurchasethroughOctober24,2014,uptoamaximumoftwotimes10.0percentofourissuedsharecapitalatApril 24,2013,atapricebetweenthenominalvalueoftheordinarysharespurchasedand110.0percentofthemarketprice ofthesesecuritiesonNYSEEuronextAmsterdamorNASDAQ.AtourAGMtobeheldonApril23,2014,weshallrequest theauthorizationfortheBoardofManagementtorepurchaseandcancelsharesforaperiodof18monthsasofthe 2014AGM,i.e.untilOctober23,2015,allinconformitywiththeprovisionsofthelawandourArticlesofAssociation.

OnApril17,2013,ASMLannouncedaShareBuybackprogram,topurchaseuptoanamountofEUR1.0billionofits ownshareswithinthe2013-2014timeframe.ASMLintendstocancelallsharesrepurchasedunderthisprogram.

Ordinary Shares B

In2012,the9,000ordinarysharesBwithanominalvalueofEUR0.01wereintroduced,duetotheSyntheticShare Buybackmentionedabove.Apersonwhoholds(amultipleof)100fractionalshares,mayexchangethosefractional sharesforanordinaryshareB.EveryholderofanordinaryshareBisentitledtoone-ninth(1/9)ofadividend.Each ordinaryshareBentitlestheholderthereoftocastonevoteattheGeneralMeeting.

Special Voting Rights on the Issued Shares

Therearenospecialvotingrightsontheissuedsharesinoursharecapital.

Limitation Voting Rights on Ordinary Shares Indirectly Held by the Participating Customers

PursuanttotheIntelShareholderAgreement,Intel(andtheStichtingAdministratiekantoorMAKTSJAB)willnotbe entitledtovotetheordinarysharesthatwereacquiredbytheStichtingAdministratiekantoorMAKTSJABaspartof theCCIPoranyotherordinarysharesotherwisetransferredtotheStichtingAdministratiekantoorMAKTSJAB(under thecircumstancesdescribedunder"Standstill;AdditionalPurchases",inNote36)priortoaShareholderAgreement TerminationEvent(seeNote36),exceptwhenaSuspensionEvent(seeNote36)occursandiscontinuingorwhere thefollowingmattersareproposedatanyGeneralMeeting(the"VotingRestrictions"):(i)anissuanceofASMLshares orgrantofrightstosubscribeforASMLsharesrepresenting25percentormoreoftheissuedandoutstandingshare capitalofASMLortherestrictionorexclusionofpre-emptionrightsrelatingthereto(ineachcase,onanaggregatebasis duringthepreceding12months)orthedesignationoftheBoardofManagementastheauthorizedbodytoresolveon thesematters;(ii)anauthorizationtorepurchase25percentormoreofASML'sissuedandoutstandingsharecapitalon anaggregatebasisduringthepreceding12months;(iii)theapprovalofasignificantchangeintheidentityornatureof ASMLoritsbusiness,includingatransferofallorsubstantiallyallbusinessorassetsofASMLanditssubsidiariesto athirdparty,theestablishmentorcancellationofalong-lastingcooperationofessentialimportancewithathirdparty andanacquisitionordispositionofaninterestinthecapitalorassetsofapersonwithavalueofatleastonethirdof theassetsofASML(onaconsolidatedbasis);(iv)anamendmenttoASML'sArticlesofAssociationthatwouldmaterially affectthespecificvotingrightsofIntel,wouldmateriallyaffecttheidentityornatureofASMLoritsbusiness,orwould disproportionately(oruniquely)andadverselyaffecttherightsorbenefitsattachedtoorderivedfromtheordinary sharesheldbyIntelthroughtheIntelStichtingascomparedtotheshareholders;(v)thedissolutionofASML;and(vi)any mergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureofASMLoritsbusiness.

TheshareholderagreementsbetweenASMLandtheotherprogramparticipants(TSMCandSamsung)areon substantiallythesametermsasthoseagreedwithIntel.

Cumulative Preference Shares

In1998,wegrantedtothepreferencesharefoundation,thePreferenceShareOption.Thisoptionwasamendedand extendedin2003and2007.AthirdamendmenttotheoptionagreementbetweentheFoundationandASMLbecame effectiveonJanuary1,2009,toclarifytheprocedurefortherepurchaseandcancellationofthepreferenceshareswhen issued.

ThenominalvalueofthecumulativepreferencesharesisEUR0.09.Thenumberofcumulativepreferenceshares includedintheauthorizedsharecapitalis700,000,000.

TheFoundationmayexercisethePreferenceShareOptioninsituationswhere,intheopinionoftheBoardofDirectors oftheFoundation,ASML'sinterests,ASML'sbusinessortheinterestsofASML'sstakeholdersareatstake.Thismay bethecaseifapublicbidforASML'sshareshasbeenannouncedorhasbeenmade,orthejustifiedexpectationexists thatsuchabidwillbemadewithoutanyagreementhavingbeenreachedinrelationtosuchabidwithASML.Thesame mayapplyifoneshareholder,ormoreshareholdersactinginconcert,holdasubstantialpercentageofASML'sissued ordinaryshareswithoutmakinganofferorif,intheopinionoftheBoardofDirectorsoftheFoundation,the(attempted) exerciseofthevotingrightsbyoneshareholderormoreshareholders,actinginconcert,ismateriallyinconflictwith ASML'sinterests,ASML'sbusinessorASML'sstakeholders.

TheobjectivesoftheFoundationaretolookaftertheinterestsofASMLandoftheenterprisesmaintainedbyASML andofthecompanieswhichareaffiliatedinagroupwithASML,insuchawaythattheinterestsofASML,ofthose enterprisesandofallpartiesconcernedaresafeguardedinthebestpossibleway,andinfluencesinconflictwiththese interestswhichmightaffecttheindependenceortheidentityofASMLandthosecompaniesaredeterredtothebest oftheFoundation'sability,andeverythingrelatedtotheaboveorpossiblyconducivethereto.TheFoundationseeksto realizeitsobjectsbytheacquiringandholdingofcumulativepreferencesharesinthecapitalofASMLandbyexercising therightsattachedtotheseshares,particularlythevotingrightsattachedtotheseshares.

ThepreferenceshareoptiongivestheFoundationtherighttoacquireanumberofcumulativepreferencesharesasthe Foundationwillrequire,providedthattheaggregatenominalvalueofsuchnumberofcumulativepreferenceshares shallnotexceedtheaggregatenominalvalueoftheordinarysharesthathavebeenissuedatthetimeofexerciseofthe PreferenceShareOptionforasubscriptionpriceequaltotheirnominalvalue.Onlyone-fourthofthesubscriptionprice ispayableatthetimeofinitialissuanceofthecumulativepreferenceshares,withtheotherthree-fourthsofthenominal valueonlybeingpayablewhenwecallupthisamount.Exerciseofthepreferenceshareoptioncouldeffectivelydilute thevotingpoweroftheoutstandingordinarysharesbyone-half.

CancellationandrepaymentoftheissuedcumulativepreferencesharesbyASMLrequirestheauthorizationbythe GeneralMeetingofShareholdersofaproposaltodosobytheBoardofManagementapprovedbytheSupervisory Board.Ifthepreferenceshareoptionisexercisedandasaresultcumulativepreferencesharesareissued,ASML,at therequestoftheFoundation,willinitiatetherepurchaseorcancellationofallcumulativepreferencesharesheldbythe Foundation.InthatcaseASMLisobligedtoeffecttherepurchaseandcancellationrespectivelyassoonaspossible.A cancellationwillhaveasaresultarepaymentoftheamountpaidandexemptionfromtheobligationtopayuponthe cumulativepreferenceshares.Arepurchaseofthecumulativepreferencesharescanonlytakeplacewhensuchshares arefullypaidup.

IftheFoundationwillnotrequestASMLtorepurchaseorcancelallcumulativepreferencesharesheldbytheFoundation within20monthsafterissuanceoftheseshares,wewillbeobligedtoconveneaGeneralMeetingofShareholdersin ordertodecideonarepurchaseorcancellationoftheseshares.

TheFoundationisindependentofASML.TheBoardofDirectorsoftheFoundationcomprisesfourindependentvoting membersfromtheDutchbusinessandacademiccommunities.FormerchairmanMr.A.BaanpassedawayonApril5, 2013andwassucceededbyMr.H.Bodt.AsofJune1,2013,themembersoftheBoardofDirectorsoftheFoundation are:Mr.H.Bodt,Mr.M.W.denBoogert,Mr.J.M.deJongandMr.A.H.Lundqvist.

Limitations to Transfers of Shares in the Share Capital of ASML

Therearecurrentlynolimitations,eitherunderDutchlaworintheArticlesofAssociationofASML,astothetransferof sharesinthesharecapitalofASML.

Reporting Obligations under the FMSA

HoldersofoursharesmaybesubjecttoreportingobligationsundertheFMSA.Thedisclosureobligationsunderthe FMSAapplytoanypersonorentitythat,directlyorindirectly,acquires,holdsordisposesofaninterestinthevoting rightsand/orthecapitalofapubliclimitedcompanyincorporatedunderthelawsofTheNetherlandswhosesharesare admittedtotradingonaregulatedmarketwithintheEU,suchasASML.Disclosureisrequiredwhenthepercentage ofvotingrightsorcapitalinterestofapersonoranentityreaches,exceedsorfallsbelow3,5,10,15,20,25,30,40, 50,60,75or95percent(asaresultofanacquisitionordisposalbysuchperson,orasaresultofachangeinourtotal numberofvotingrightsorcapitalissued).WithrespecttoASML,theFMSArequiresanypersonorentitywhoseinterest inthevotingrightsand/orcapitalofASMLreached,exceededorfellbelowthosepercentageintereststonotifytheAFM.

ASMLisrequiredtonotifytheAFMimmediatelyifourvotingrightsand/orcapitalhavechangedby1.0percentor moresinceourpreviousnotificationonoutstandingvotingrightsandcapital.Inaddition,ASMLmustnotifytheAFM ofchangesoflessthan1.0percentinASML'soutstandingvotingrightsandcapitalatleastoncepercalendarquarter, withineightdaysaftertheendofthequarter.Anypersonwhosedirectorindirectvotingrightsand/orcapitalinterests meetsorpassesthethresholdsreferredtohere-aboveasaresultofachangeintheoutstandingvotingrightsorcapital mustnotifytheAFMnolaterthanthefourthtradingdayaftertheAFMhaspublishedsuchachange.

Onceeverycalendaryearwithinfourweeksaftertheendofthecalendaryear,holdersofaninterestof3.0percentor moreinASML'svotingrightsorcapitalmustnotifytheAFMofanychangesinthecompositionoftheirinterestresulting fromcertainacts(including,butnotlimitedto,theexchangeofsharesfordepositoryreceiptsandviceversa,andthe exerciseofrightstoacquireshares).

Subsidiaries,asdefinedintheFMSA,donothaveindependentreportingobligationsundertheFMSA,asinterestsheld bythemareattributedtotheir(ultimate)parents.AnypersonmayqualifyasaparentforthepurposesoftheFMSA includinganindividual.Apersonwhoceasestobeasubsidiaryandwhodisposesofaninterestof3.0percentormore inASML'svotingrightsorcapitalmustimmediatelynotifytheAFM.Asofthatmoment,allnotificationsobligations undertheFMSAbecomeapplicabletotheformersubsidiary.

Forthepurposeofcalculatingthepercentageofcapitalinterestorvotingrights,thefollowinginterestsmust,among otherarrangements,betakenintoaccount:sharesandvotes(i)directlyheldbyanyperson;(ii)heldbysuchperson's subsidiaries;(iii)heldbyathirdpartyforsuchperson'saccount;(iv)heldbyathirdpartywithwhomsuchpersonhas concludedanoralorwrittenvotingagreement(includingonthebasisofanunrestrictedpowerofattorney);,(v)held byathirdpartywithwhomsuchpersonhasagreedtotemporarilytransfervotingrightsagainstpayment;(vi)financial instrumentsofwhichtheincreaseinvalueiswhollyorpartiallydependentonanincreaseinvalueofoursharesor distributionsinrespectthereof(includingcertaincashsettledfinancialinstrumentssuchascontractsfordifferenceand totalreturnswap);(vii)putoptionspursuanttowhichapersoncanberequiredtopurchaseourshares;and(vii)other contractsunderwhichapersonhasapositioneconomicallycomparabletohavingourshares.

Forthesamepurpose,thefollowinginstrumentsqualifyas"shares":(i)shares,(ii)depositoryreceiptsforshares(or negotiableinstrumentssimilartosuchreceipts),(iii)negotiableinstrumentsforacquiringtheinstrumentsunder(i)or(ii) (suchasconvertiblebonds),and(iv)optionsforacquiringtheinstrumentsunder(i)and(ii).

TheAFMkeepsapublicregistryofandpublishesallnotificationspursuanttotheFMSA.

Non-compliancewiththereportingobligationsundertheFMSAcouldleadtocriminalfines,administrativefines, imprisonmentorothersanctions.Inaddition,non-compliancewiththereportingobligationsundertheFMSAmayleadto civilsanctions,including(i)suspensionofthevotingrightsrelatingtothesharesheldbytheoffender,foraperiodofnot morethanthreeyears,(ii)nullificationofanyresolutionofourGeneralMeetingofShareholderstotheextentthatsuch resolutionwouldnothavebeenapprovedifthevotesatthedisposalofthepersonorentityinviolationofadutyunder theFMSAhadnotbeenexercisedand(iii)aprohibitionontheacquisitionbytheoffenderofoursharesorthevotingon ourordinarysharesforaperiodofnotmorethanfiveyears.

SinceJuly1,2013,wemay,inbrief,requestEuroclearNederlandanditsadmittedinstitutionsaswellasintermediaries, institutionsofinvestmentsfunds(intheNetherlandsandabroad)ofwhichwereasonablyexpectthattheyholdour sharesotherthanasbeneficialowner,toprovidecertaindetailsontheidentityandnumberofsharesheld,oftheir clientsforwhomtheyholdourshares.Wemustkeeptheinformationreceivedconfidential.Wemayonlymuchsuch requestsduringaperiodof60daysuptothedayonwhichourgeneralmeetingwillbeheld.Nodetailsarerequiredto begiveninrespectofshareholderswithaninterestoflessthan0.5percentofourissuessharecapital.Ashareholder who,individuallyortogetherwithothershareholders,holdsaninterestofatleast10percentoftheissuedsharecapital mayrequestustoestablishtheidentityofourshareholdersinthismannersothatwecanforwardtotheminformation providedbysuchshareholderinrespectofanitemontheagendaforthegeneralmeeting.Thisrequestmayonlybe madeduringaperiodof60daysuntil(andnotincluding)the42nddaybeforethedayonwhichtheGeneralMeetingwill beheld.

Thefollowingtablesetsforththetotalnumberofordinarysharesownedbyeachshareholderwhosebeneficial ownershipofordinarysharesisatleast3.0percentofourordinarysharesissuedandoutstandingasofDecember31, 2013.TheinformationsetoutbelowissolelybasedonpublicfilingsmadewiththeSECandAFMonFebruary5,2014.

	Shares	Percent of
Identity of Person or Group	Owned	Class6
StichtingAdministratiekantoorMAKTSJAB/Intel1	62,977,877	14.29%
CapitalGroupInternational,Inc2	51,453,097	11.67%
BlackRockInc.3	22,982,001	5.21%
StichtingAdministratiekantoorTSMC/TSMC4	20,992,625	4.76%
FMRLLC5	19,537,364	4.43%

1 StichtingAdminstratiekantoorMAKTSJABownsthestatedpercentageofourordinarysharesandhasissuedcorrespondingdepositoryreceiptsto Intel.

2 AsreportedtotheDutchAuthorityfortheFinancialMarketsonSeptember3,2012,CapitalGroupInternational,Inc.indirectlyhasvotingrights relatedto51,453,097sharesofourordinarysharesbutdoesnothaveownershiprightsrelatedtothoseshares.Inaddition,CRMC,whichwebelieve tobeanaffiliateofCapitalGroupInternational,Inc.,reportedtotheDutchAuthorityfortheFinancialMarketsonAugust2,2011,thatitholds votingrightsrelatedto44,579,832sharesofourordinarysharesbutdoesnothaveownershiprightsrelatedtothoseshares.CapitalWorldInvestors reportedonaSchedule13-G/AfiledwiththeCommissiononJune10,2013,thatitisthebeneficialownerof45,026,116sharesofourordinaryshares asaresultofitsaffiliationwithCRMC.

3 BasedsolelyontheSchedule13-G/AfiledbyBlackRockInc.withtheCommissiononFebruary3,2014.TheJuly2,2013publicfilingwiththeAFM showsaggregateholdingsofvariousBlackRockfundsof(basedontotalnumberofissuedsharesasper2July2013)3.68%insharesand4.42%in votingrights.

4 StichtingAdministratiekantoorTSMCownsthestatedpercentageofordinarysharesandhassimultaneouslyissuedcorrespondingdepository receiptstoTSMC.

5 BasedsolelyontheSchedule13-G/AfiledbyFMRLLCwiththeCommissiononFebruary14,2013.FMRLLCpreviouslyreportedontheSchedule 13-G/AfiledwiththeCommissiononFebruary12,2012thatitowned36,311,008ofourordinaryshares.

6 Asapercentageofthetotalnumberofordinarysharesoutstanding(440,852,334)asofDecember31,2013

Appointment of Board of Management and Supervisory Board

BoardofManagement

TherulesgoverningtheappointmentanddismissalofmembersoftheBoardofManagementaredescribedinsectionII. above.

SupervisoryBoard

TherulesgoverningtheappointmentanddismissalofmembersoftheSupervisoryBoardaredescribedinsectionIII. above.

AmendmentoftheArticlesofAssociation

TheGeneralMeetingofShareholderscanresolvetoamendourArticlesofAssociation.The(proposed)amendment requirestheapprovaloftheSupervisoryBoard.

AresolutiontoamendtheArticlesofAssociationisadoptedataGeneralMeetingofShareholdersatwhichmorethan onehalfoftheissuedsharecapitalisrepresentedandwithatleastthree-fourthsofthevotescast;iftherequiredshare capitalisnotrepresentedatameetingconvenedforthatpurpose,asubsequentmeetingshallbeconvened,tobeheld withinfourweeksofthefirstmeeting,atwhich,irrespectiveofthesharecapitalrepresented,theresolutioncanbe adoptedwithatleastthree-fourthsofthevotescast.IfaresolutiontoamendtheArticlesofAssociationisproposed bytheBoardofManagement,theresolutionwillbeadoptedwithanabsolutemajorityofvotescastirrespectiveofthe representedsharecapitalattheGeneralMeetingofShareholders.

Thecompleteproposalsshouldbemadeavailableforinspectionbytheshareholdersandtheothersentitledto attendmeetingsatourofficeandatabankinginstitutiondesignatedintheconvocationtotheGeneralMeetingof Shareholders,asfromthedateofsaidconvocationuntilthecloseofthatmeeting.Furthermore,wemustconsultNYSE EuronextAmsterdamandtheAFM,beforetheamendmentisproposedtoourshareholders.

TheaboverequirementsapplicabletotheamendmentoftheArticlesofAssociation,assetforthintheArticles ofAssociation,aremorestringentthantheminimumapprovalrequirementsunderDutchlaw(whichonlyrequires approvalbytheGeneralMeetinginadditiontotheapprovaloftheSupervisoryBoardofaproposalfromtheBoardof ManagementtoamendtheArticlesofAssociation).

Severance Payments under Agreements with Members of Board of Management

EmploymentagreementsrespectivelymanagementservicesagreementsforallmembersoftheBoardofManagement containspecificprovisionsregardingseverancepayments(includingthoseemploymentagreementsthatwereentered intowithmembersoftheBoardofManagementbeforeMarch31,2004(perJuly1,2013)).IfASMLgivesnoticeof terminationoftheemploymentagreementforreasonswhicharenotexclusivelyormainlyfoundinactsoromissionsof theboardmemberconcerned,aseverancepaymentnotexceedingoneyearbasesalarywillbepaidupontheeffective dateoftermination.ThisseverancepaymentwillalsobepaidincaseaBoardofManagementmembergivesnoticeof terminationoftheemploymentagreementinconnectionwithasubstantialdifferenceofopinionbetweentherespective executiveandtheSupervisoryBoardregardingher/hisemploymentagreement,her/hisfunctionorourstrategy.

BoardofManagementmembersshallalsobeentitledtotheaforementionedseverancepaymentsintheeventASMLor itslegalsuccessorgivesnoticeofterminationinconnectionwithaChangeofControl(asdefinedintheemployment agreement)orifsuchBoardofManagementmembergivesnoticeofterminationdirectlyrelatedtosuchChangeof Control,andsuchnoticeisgivenwithintwelvemonthsfromthedateonwhichtheChangeofControloccurs.

VII. Deviation from the Code

Forclaritypurposes,ASMLlistsbelowitsdeviationfromtheCodeandreasonsfordoingso.Thedeviationfollowsthe orderoftherecommendationsintheCode.

II.2.5

AlthoughASMLdoesnotconsiderASML'sexecutionofthisbestpracticeadeviationfromtheCode,itcouldbe interpretedassuch.

ThemembersoftheBoardofManagementareeligibletoreceiveperformanceshareswhichwillbeawardedannually undertheconditionoffulfillmentofpredeterminedperformancetargets,whicharemeasuredoveraperiodofthree calendaryears.Oncethesharesareunconditionallyawardedafterfulfillmentoftheperformanceconditions,the shareswillberetained(foralock-upperiod)bytheBoardofManagementmemberforatleasttwoyearsafterthe dateofunconditionalawardoruntiltheterminationofemployment,whicheverperiodisshorter.Thedateofrelease liesthreeyearsaftertheoriginaldateoftargetsetting,andthemembersoftheBoardofManagementhavetoretain theperformancesharesforatleasttwosubsequentyears.Accordingly,thetotalperiodbeforeoneobtainsfullrights totheperformanceshareswillbefiveyears.TheRemunerationCommitteebelievesthatthetotalresultingperiod isincompliancewiththeCode.TheAGMapprovedtheperformancesharearrangementinaccordancewiththe RemunerationPolicy(version2014)fortheBoardofManagementonApril24,2013.

TheBoardofManagementandtheSupervisoryBoard, Veldhoven,February11,2014

Management Board Report

About ASML

ASMLmakespossibleaffordablemicroelectronicsthatimprovethequalityoflife.ASMLinventsanddevelopscomplex technologyforhigh-techlithography,metrologyandsoftwaresolutionsforthesemiconductorindustry.ASML'sguiding principleiscontinuingMoore'sLawtowardseversmaller,cheaper,morepowerfulandenergy-efficientsemiconductors. Oursuccessisbasedonthreepillars:technologyleadershipcombinedwithcustomerandsupplierintimacy,highly efficientprocessesandentrepreneurialpeople.Weareamultinationalcompanywithover70locationsin16countries, headquarteredinVeldhoven,theNetherlands.AsofDecember31,2013,weemployed10,360payrollemployees(2012: 8,497)and2,865temporaryemployees(2012:2,139),measuredinFTEs.ASMListradedonNYSEEuronextAmsterdam andNASDAQunderthesymbolASML.

In2013,wegeneratednetsalesofEUR5,245.3millionandoperatingincomeofEUR1,275.1millionor24.3percent ofnetsales.Netincomein2013amountedtoEUR1,193.8millionor22.8percentofnetsales,representingbasicnet incomeperordinaryshareofEUR2.78.

AllinformationdisclosedinthisManagementBoardReportisprovidedasasupplementto,andshouldbereadin conjunctionwith,ourConsolidatedFinancialStatementsandtheaccompanyingnotestotheConsolidatedFinancial Statements.

OnMay30,2013weacquired100percentoftheissuedsharecapitalofCymer.Comparativefinancialinformation presentedintheStatutoryAnnualReportdoesnotincludeCymer,unlessindicatedotherwise.

Risk Factors

Inconductingourbusiness,wefacemanyrisksthatmayinterferewithourbusinessobjectives.Someoftheserisks relatetoouroperationalprocesses,whileothersrelatetoourbusinessenvironment.Itisimportanttounderstandthe natureoftheserisksandtheimpacttheymayhaveonourbusiness,financialconditionandresultsofoperations.Some ofthemorerelevantrisksaredescribedbelow.Theserisksarenottheonlyonesthatweface.Somerisksmaynotyet beknowntousandcertainrisksthatwedonotcurrentlybelievetobematerialcouldbecomematerialinthefuture.

Summary

StrategicRisk

• Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberofsystems.

RisksRelatedtotheSemiconductorIndustry

Thesemiconductorindustryishighlycyclicalandwemaybeadverselyaffectedbyanydownturn;
Ourbusinesswillsufferifwedonotrespondrapidlytocommercialandtechnologicalchangesinthesemiconductor industry;and
Wefaceintensecompetition.

Governmental,LegalandComplianceRisks

Failuretoadequatelyprotecttheintellectualpropertyrightsuponwhichwedependcouldharmourbusiness;
Defendingagainstintellectualpropertyclaimsbroughtbyotherscouldharmourbusiness;
Wearesubjecttorisksinourinternationaloperations;and
Becauseoflaborlawsandpractices,anyworkforcereductionsthatwemayseektoimplementinordertoreduce costscompany-widemaybedelayedorsuspended.

OperationalRisks

Thenumberofsystemswecanproduceislimitedbyourdependenceonalimitednumberofsuppliersofkey components;
Thepaceofintroductionofournewproductsisacceleratingandisaccompaniedbypotentialdesignandproduction delaysandbysignificantcosts;
AsLithographyTechnologiesbecomeMoreComplex,ourR&DProgramsbecomeMoreRiskyandMoreExpensive
Wearedependentonthecontinuedoperationofalimitednumberofmanufacturingfacilities;
Wemaybeunabletomakedesirableacquisitionsortointegratesuccessfullyanybusinessesweacquire;and
Ourbusinessandfuturesuccessdependonourabilitytoattractandretainasufficientnumberofadequately educatedandskilledemployees.

FinancialRisks

Ahighpercentageofnetsalesisderivedfromafewcustomers;and
Fluctuationsinforeignexchangeratescouldharmourresultsofoperations.

RisksRelatedtoourOrdinaryShares

Wemaynotdeclarecashdividendsatallorinanyparticularamountsinanygivenyear;
Restrictionsonshareholderrightsmaydilutevotingpower;and
ParticipatingcustomersinourCCIPtogetherownasignificantamountofourordinaryshares.

Explanation Per Risk

StrategicRisk

We Derive Most of Our Revenues from the Sale of a Relatively Small Number of Systems

Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberoflithographyequipmentsystems(157unitsin 2013and170unitsin2012),withanASPpersystemin2013ofEUR25.4million(EUR27.4millionfornewsystemsand EUR6.9millionforusedsystems)andanASPpersystemin2012ofEUR22.4million(EUR24.8millionfornewsystems andEUR7.6millionforusedsystems).Asaresult,thetimingofrecognitionofrevenueforaparticularreportingperiod fromasmallnumberofsystemsalesmayhaveamaterialadverseeffectonourbusiness,financialconditionandresults ofoperationsinthatperiod.Specifically,thefailuretoreceiveanticipatedorders,ordelaysinshipmentsneartheendof aparticularreportingperiod,due,forexample,to:

Adownturninthehighlycyclicalsemiconductorindustry;
Unanticipatedshipmentrescheduling;
Cancellationororderpush-backbycustomers;
Unexpectedmanufacturingdifficulties;or
Delaysindeliveriesbysuppliers

maycausenetsalesinaparticularreportingperiodtofallsignificantlybelownetsalesinpreviousperiodsorbelowour expectednetsales,andmayhaveamaterialadverseeffectonourresultsofoperationsforthatperiod.Inparticular,our publishedquarterlyearningsmayvarysignificantlyfromquartertoquarterandmayvaryinthefutureforthereasons discussedabove.

RisksRelatedtotheSemiconductorIndustry

The Semiconductor Industry is Highly Cyclical and We May Be Adversely Affected by Any Downturn

Asasuppliertotheglobalsemiconductorindustry,wearesubjecttotheindustry'sbusinesscycles,ofwhichthetiming, durationandvolatilityaredifficulttopredict.Thesemiconductorindustryhashistoricallybeencyclical.Salesofour lithographysystemsdependinlargepartuponthelevelofcapitalexpendituresbysemiconductormanufacturers.These capitalexpendituresdependuponarangeofcompetitiveandmarketfactors,including:

Thecurrentandanticipatedmarketdemandforsemiconductorsandforproductsutilizingsemiconductors;
Semiconductorprices;
Semiconductorproductioncosts;
Changesinsemiconductorinventorylevels;
Generaleconomicconditions;and
Accesstocapital.

Reductionsordelaysincapitalequipmentpurchasesbyourcustomerscouldhaveamaterialadverseeffectonour business,financialconditionandresultsofoperations.

Inanindustrydownturn,ourabilitytomaintainprofitabilitywilldependsubstantiallyonwhetherweareabletolower ourcostsandbreak-evenlevel,whichisthelevelofsalesthatwemustreachinayeartoachievepositivenetincome. Ifsalesdecreasesignificantlyasaresultofanindustrydownturnandweareunabletoadjustourcostsoverthesame period,ournetincomemaydeclinesignificantlyorwemaysufferlosses.Asweneedtokeepcertainlevelsofinventory onhandtomeetanticipatedproductandservicedemand,wemayalsoincurincreasedcostsrelatedtoinventory obsolescenceinanindustrydownturn.Inaddition,industrydownturnsgenerallyresultinovercapacity,resultingin downwardpressureonsalespricesandimpairmentofmachineryandequipment,whichinthepasthashad,andinthe futurecouldhave,amaterialsaleadverseeffectonourbusiness,financialconditionandresultsofoperations.

Theongoingfinancialcrisesthathaveaffectedtheinternationalbankingsystemandglobalfinancialmarketssince 2008havebeeninmanyrespectsunprecedented.ConcernspersistoverthedebtburdenofcertainEurozonecountries andtheirabilitytomeetfutureobligations,theoverallstabilityoftheeuro,andthesuitabilityoftheeuroasasingle currencygiventhediverseeconomicandpoliticalcircumstancesinindividualEurozonecountries.Thesepotential developmentsormarketperceptionsconcerningtheseandrelatedissues,remainingconcernsovertheeffectofthis financialcrisisonfinancialinstitutionsinEuropeandglobally,andtheinstabilityofthefinancialmarketsandtheglobal economyingeneralcouldresultinanumberoffollow-oneffectsonourbusiness,including(i)decliningbusinessand consumerconfidenceresultinginreduced,ordelayedpurchaseofourproductsorshorter-termcapitalexpenditures forourproducts;insolvencyofkeysuppliersresultinginproductdelays,(ii)aninabilityofcustomerstoobtaincreditto financepurchasesofourproducts,delayedpaymentsfromourcustomersand/orcustomerinsolvenciesand(iii)other adverseeffectsthatwecannotcurrentlyanticipate.Ifglobaleconomicandmarketconditionsdeteriorate,wearelikely toexperiencematerialadverseimpactsonourbusiness,financialconditionandresultsofoperations.

Conversely,inanticipationofperiodsofincreasingdemandforsemiconductormanufacturingequipment,wemust maintainsufficientmanufacturingcapacityandinventoryandwemustattract,hire,integrateandretainasufficient numberofqualifiedemployeestomeetcustomerdemand.Ourabilitytopredictthetimingandmagnitudeofindustry fluctuationsislimitedandourproductsrequiresignificantlead-timetosuccessfullycomplete.Accordingly,wemaynot beabletoeffectivelyincreaseourproductioncapacitytorespondtoanincreaseincustomerdemandinanindustry upturnresultinginlostsales,damagetocustomerrelationshipsandwemaylosemarketshare.

Our Business Will Suffer If We Do Not Respond Rapidly to Commercial and Technological Changes in the Semiconductor Industry

Thesemiconductormanufacturingindustryissubjectto:

Rapidchangetowardsmorecomplextechnologies;
Frequentnewproductintroductionsandenhancements;
Evolvingindustrystandards;
Changesincustomerrequirements;and
Continuedshorteningofproductlifecycles.

Ourproductscouldbecomeobsoletesoonerthananticipatedbecauseofafasterthananticipatedchangeinoneor moreofthetechnologiesrelatedtoourproductsorinmarketdemandforproductsbasedonaparticulartechnology. Oursuccessindevelopingnewproductsandinenhancingourexistingproductsdependsonavarietyoffactors, includingthesuccessfulmanagementofourR&Dprogramsandthetimelycompletionofproductdevelopmentand designrelativetocompetitors.Ifwedonotdevelopandintroducenewandenhancedsystemsatcompetitivepricesand onatimelybasis,ourcustomerswillnotintegrateoursystemsintotheplanninganddesignofnewproductionfacilities andupgradesofexistingfacilities,whichwouldhaveamaterialadverseeffectonourbusiness,financialconditionand resultsofoperations.

Inparticular,weareinvestingconsiderablefinancialandotherresourcestodevelopandintroducenewproductsand productenhancements,suchasEUV,Immersionandholisticlithography.Ifweareunabletosuccessfullydevelopand introducetheseproductsandtechnologies,orifourcustomersdonotfullyadoptthenewtechnologies,productsor productenhancementsduetoapreferenceformoreestablishedoralternativenewtechnologiesandproductsorforany otherreason,wemaynotrecoupallofourinvestmentsinthesetechnologiesorproducts,whichcouldhaveamaterial adverseeffectonourbusiness,financialconditionandresultsofoperations.

ThesuccessofEUVremainsparticularlydependentonlightsourceavailabilityandcontinuingrelatedtechnical advancesbyusandoursuppliers,aswellasinfrastructuredevelopmentsinmasksandphotoresists,withoutwhich EUVtoolscannotachievetheproductivityandyieldrequiredtoeconomicallyjustifythehigherpriceofthesetools.A delayinthedevelopmentsofthesetoolscoulddiscourageorresultinmuchsloweradoptionofthistechnology.Ifthe technologiesthatwepursuetoassistourcustomersinproducingsmallerandmoreefficientchips,arenotaseffective asthosedevelopedbyourcompetitors,orifourcustomersadoptnewtechnologicalarchitecturesthatarelessfocused onlithography,thismayadverselyaffectourbusiness,financialconditionandresultsofoperations.

We Face Intense Competition

Thesemiconductorequipmentindustryishighlycompetitive.Theprincipalelementsofcompetitioninourmarketare:

Thetechnicalperformancecharacteristicsofalithographysystem;
Thevalueofownershipofthatsystembasedonitspurchaseprice,maintenancecosts,productivity,andcustomer serviceandsupportcosts;
TheexchangerateoftheeuroparticularlyagainsttheJapaneseyenwhichresultsinvaryingpricesandmargins;
Thestrengthandbreadthofourportfolioofpatentsandotherintellectualpropertyrights;and
Ourcustomers'desiretoobtainlithographyequipmentfrommorethanonesupplier.

Ourcompetitivenessincreasinglydependsuponourabilitytodevelopnewandenhancedsemiconductorequipment thatiscompetitivelypricedandintroducedonatimelybasis,aswellasourabilitytoprotectanddefendourintellectual propertyrights.SeeNote11andNote26toourConsolidatedFinancialStatements.

WecompeteprimarilywithNikonandtoalesserdegreewithCanon.BothNikonandCanonhavesubstantialfinancial resourcesandbroadpatentportfolios.Eachcontinuestointroducenewproductswithimprovedpriceandperformance characteristicsthatcompetedirectlywithourproducts,whichmaycauseadeclineinoursalesoralossofmarket acceptanceforourlithographysystems.Inaddition,adversemarketconditions,industryovercapacityoradecreasein thevalueoftheJapaneseyeninrelationtotheeuroortheU.S.dollar,couldfurtherintensifyprice-basedcompetition inthoseregionsthataccountforthemajorityofoursales,resultinginlowerpricesandmarginswhichcouldhavea materialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Inadditiontocompetitorsinlithography,wemayfacecompetitionwithrespecttoalternativetechnologiesforthenoncriticallayersorforalllayers.IfwefailtokeeppacewithMoore'slaw,whichpostulatesthatthenumberoftransistors onachipdoublesapproximatelyevery18to24monthsatequivalentmarginalcosts,orintheeventthedeliveryofnew technologyisdelayed,ourcustomersmayoptforothersolutionsinICmanufacturingasasubstituteforpurchasingour products.

Also,inthefuturetheICindustrymaynotfinditeconomicallyfeasibletomaintainthepaceofMoore'slawthrough theuseoflithographysystems,whichcouldresultinourcustomerschoosingothersolutionsthanlithographyforIC manufacturing.IfthepaceofMoore'slawisnotmaintained,thiscouldalsoresultintheICindustryutilizingfewer leadingtechnologysystems,whichcouldresultinlowersalesandmargins.

Governmental,LegalandComplianceRisks

Failure to Adequately Protect the Intellectual Property Rights Upon Which We Depend Could Harm Our Business Werelyonintellectualpropertyrightssuchaspatents,copyrightsandtradesecretstoprotectourproprietary technology.However,wefacetheriskthatsuchmeasurescouldprovetobeinadequatebecause:

Intellectualpropertylawsmaynotsufficientlysupportourproprietaryrightsormaychangeinthefutureinamanner adversetous;
Patentrightsmaynotbegrantedorconstruedasweexpect;
Patentswillexpirewhichmayresultinkeytechnologybecomingwidelyavailablethatmayhurtourcompetitive position;
Thestepswetaketopreventmisappropriationorinfringementofourproprietaryrightsmaynotbesuccessful;and
Thirdpartiesmaybeabletodeveloporobtainpatentsforsimilarcompetingtechnology.

Inaddition,litigationmaybenecessarytoenforceourintellectualpropertyrights,todeterminethevalidityandscopeof theproprietaryrightsofothers,ortodefendagainstclaimsofinfringement.Anysuchlitigationmayresultinsubstantial costsanddiversionofmanagementresources,and,ifdecidedunfavorablytous,couldhaveamaterialadverseeffect onourbusiness,financialconditionandresultsofoperations.

Defending Against Intellectual Property Claims Brought by Others Could Harm Our Business

Inthecourseofourbusiness,wearesubjecttoclaimsbythirdpartiesallegingthatourproductsorprocesses infringeupontheirintellectualpropertyrights.Ifsuccessful,suchclaimscouldlimitorprohibitusfromdevelopingour technologyandmanufacturingourproducts,whichcouldhaveamaterialadverseeffectonourbusiness,financial conditionandresultsofoperations.

Inaddition,ourcustomersmaybesubjecttoclaimsofinfringementfromthirdparties,allegingthatourproductsused bysuchcustomersinthemanufactureofsemiconductorproductsand/ortheprocessesrelatingtotheuseofour productsinfringeoneormorepatentsissuedtosuchparties.Ifsuchclaimsweresuccessful,wecouldberequired toindemnifycustomersforsomeorallofanylossesincurredordamagesassessedagainstthemasaresultofsuch infringement,whichcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Wealsomayincursubstantiallicensingorsettlementcosts,whichalthoughpotentiallystrengtheningorexpandingour intellectualpropertyrightsorlimitingourexposuretointellectualpropertyclaimsofthirdparties,mayhaveamaterial adverseeffectonourbusiness,financialconditionandresultsofoperations.

Fromlate2001through2004,ASMLwaspartytoaseriesofcivillitigationsandadministrativeproceedingsinwhich NikonallegedASML'sinfringementofNikonpatentsrelatingtolithography.ASMLinturnfiledclaimsagainstNikon. PursuanttoagreementsexecutedonDecember10,2004,ASMLandNikonagreedtosettleallpendingworldwide patentlitigationbetweenthecompanies.Thesettlementincludedanexchangeofreleases,apatentCross-License agreementrelatedtolithographyequipmentusedtomanufacturesemiconductordevicesandpaymentstoNikonby ASML.BeginningonJanuary1,2015,thepartiesmaybringsuitforinfringementofpatentssubjecttotheNikonCross-LicenseAgreement,includinganyinfringementthatoccurredduringtheCross-LicenseTransitionPeriod.Damages resultingfromclaimsforpatentinfringementoccurringduringtheCross-LicenseTransitionPeriodarelimitedtothree percentofthenetsalespriceofproductsfoundtoinfringevalidandenforceablepatents.

We Are Subject to Risks in Our International Operations

ThemajorityofoursalesaremadetocustomersoutsideEurope.Thereareanumberofrisksinherentindoingbusiness insomeofthoseregions:

Potentiallyadversetaxconsequences;
Unfavorablepoliticaloreconomicenvironments;
Unexpectedlegalorregulatorychanges;
Aninabilitytoeffectivelyprotectintellectualproperty;and
Adverseeffectsofforeigncurrencyfluctuations.

Ifweareunabletomanagesuccessfullytherisksinherentinourinternationalactivities,ourbusiness,financialcondition andresultsofoperationscouldbemateriallyandadverselyaffected.

Inparticular,42.4percentofour2013netsalesand31.3percentofour2012netsaleswerederivedfromcustomers inTaiwan.Taiwanhasauniqueinternationalpoliticalstatus.ThePeople'sRepublicofChinaassertssovereigntyover TaiwananddoesnotrecognizethelegitimacyoftheTaiwanesegovernment.ChangesinrelationsbetweenTaiwanand thePeople'sRepublicofChina,TaiwanesegovernmentpoliciesandotherfactorsaffectingTaiwan'spolitical,economic orsocialenvironmentcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Inaddition,theinstallationandservicingofourproductsrequiresustotraveltoourcustomerspremises.Natural disasterscouldaffectourabilitytodoso.Forexample,theJapaneseearthquakein2011resultedinthedisruptionof ourinstallationandservicingofsystemsforourcustomersinJapan.Naturaldisastersinareaswhereourcustomersare locatedcouldpreventordisrupttheinstallationorservicingofoursystems.

Because of Labor Laws and Practices, Any Workforce Reductions That We May Seek to Implement in Order to Reduce Costs Company-wide May Be Delayed or Suspended

Thesemiconductormarketishighlycyclicalandasaconsequencewemayneedtoimplementworkforcereductionsin caseofadownturn,inordertoadapttosuchmarketchanges.Inaccordancewithlaborlawsandpracticesapplicable inthejurisdictionsinwhichweoperate,areductionofanysignificancemaybesubjecttoformalproceduresthatcan delayormayresultinthemodificationofourplannedworkforcereductions.Forexample,ASMLNetherlandsB.V.,our operatingsubsidiaryintheNetherlands,hasaWorksCouncil,asrequiredbyDutchlaw.IftheWorksCouncilrenders contraryadviceinconnectionwithaproposedworkforcereductionintheNetherlands,butwenonethelessdetermine toproceed,wemusttemporarilysuspendanyactionwhiletheWorksCouncildetermineswhethertoappealtothe EnterpriseChamberoftheAmsterdamCourtofAppeal.Thisappealprocesscancauseadelayofseveralmonthsand mayrequireustoaddressanyproceduralinadequaciesidentifiedbytheCourtinthewaywereachedourdecision.Such delayscouldimpairourabilitytoreducecostscompany-widetolevelscomparabletothoseofourcompetitors.

The Number of Systems We Can Produce is Limited by Our Dependence on a Limited Number of Suppliers of Key Components

Werelyonoutsidevendorsforthecomponentsandsubassembliesusedinoursystems,eachofwhichisobtainedfrom asinglesupplieroralimitednumberofsuppliers.Ourrelianceonalimitedgroupofsuppliersinvolvesseveralrisks, includingapotentialinabilitytoobtainanadequatesupplyofrequiredcomponentsandtheriskofuntimelydeliveryof thesecomponentsandsubassemblies.

ThenumberoflithographysystemsweareabletoproducemaybelimitedbytheproductioncapacityofZeiss.Zeiss isoursinglesupplieroflenses,collectorsandothercriticalopticalcomponents.IfZeisswereunabletomaintainand increaseproductionlevelsorifweareunabletomaintainourbusinessrelationshipwithZeissinthefuturewecouldbe unabletofulfillorders,whichcoulddamagerelationshipswithcurrentandprospectivecustomersandhaveamaterial adverseeffectonourbusiness,financialconditionandresultsofoperations.IfZeissweretoterminateitsrelationship withusorifZeisswereunabletomaintainproductionoflensesoveraprolongedperiod,wewouldeffectivelycease tobeabletoconductourbusiness.InadditiontoZeiss'currentpositionasoursinglesupplieroflensesandtheCO² lasers,usedinourthird-generation(NXE:3300B)EUVsystems,areavailablefromonlyalimitednumberofsuppliers.

Manufacturingsomeofthesecomponentsandsubassembliesthatweuseinourmanufacturingprocessesisan extremelycomplexprocessandcouldresultindelaysbyoursuppliers.Aprolongedinabilitytoobtainadequate deliveriesofcomponentsorsubassemblies,oranyothercircumstancethatrequiresustoseekalternativesourcesof supply,couldsignificantlyhinderourabilitytodeliverourproductsinatimelymanner,whichcoulddamagerelationships withcurrentandprospectivecustomersandhaveamaterialadverseeffectonourbusiness,financialconditionand resultsofoperations.

The Pace of Introduction of Our New Products is Accelerating and Is Accompanied by Potential Design and Production Delays and by Significant Costs

Thedevelopmentandinitialproduction,installationandenhancementofthesystemsweproduceisoftenaccompanied bydesignandproductiondelaysandrelatedcostsofanaturetypicallyassociatedwiththeintroductionandtransition tofull-scalemanufacturingofcomplexcapitalequipment.Whileweexpectandplanforacorrespondinglearning-curve effectinourproductdevelopmentcycle,wecannotpredictwithprecisionthetimeandexpenserequiredtoovercome theseinitialproblemsandtoensurefullperformancetospecifications.Moreover,weanticipatethatthislearning-curve effectwillcontinuetopresentincreasinglydifficultchallengeswitheachnewgenerationofourproductsasaresultof increasingtechnologicalcomplexity.Inparticular,thedevelopmentofanEUVvolumeproductionsystemisdependent on,andsubjecttothesuccessfulimplementationof,technologyrelatedtothelightsourceandothertechnologies specifictoEUV.Thereisariskthatwemaynotbeabletointroduceorbringtofull-scaleproductionnewproductsas quicklyasweanticipateinourproductintroductionplans,whichcouldhaveamaterialadverseeffectonourbusiness, financialconditionandresultsofoperations.

Forthemarkettoaccepttechnologyenhancements,ourcustomers,inmanycases,mustupgradetheirexisting technologycapabilities.Suchupgradesfromestablishedtechnologymaynotbeavailabletoourcustomerstoenable volumeproductionusingournewtechnologyenhancements.Thiscouldresultinourcustomersnotpurchasing,or pushingbackorcancelingordersforourtechnologyenhancements,whichcouldnegativelyimpactourbusiness, financialconditionandresultsofoperations.

As Lithography Technologies become More Complex, our R&D Programs become More Risky and More Expensive

Ourlithographysystemshavebecomeincreasinglycomplex,andaccordingly,thecoststodevelopthenewproducts andtechnologieshaveincreased,andweexpectsuchcoststocontinuetoincrease.Thisincreaseincostsrequiresus tocontinueobtainingsufficientfundingforourR&Dprograms.Forexample,weobtainedfundingforour450mmand EUVR&DprogramsthroughtheCCIP.Wemayhowever,beunabletoobtainthistypeoffundingfromcustomersinthe future,inwhichcasewemaybeunabletofundR&Dinvestmentsnecessarytomaintainourtechnologicalleadership. TheincreasingcostofR&Dprogramsfornewtechnologiesalsoincreasestheriskthatanewproductortechnologymay notbesuccessful,whichcouldresultinsignificantcostsnotbeingrecovered.

Furthermore,astheinnovationcyclebecomesmorecomplex,developingnewtechnologyrequiresincreasedR&D investmentsbyoursuppliersinordertomeetthetechnologydemandsofusandourcustomers.Oursuppliersmaynot have,ormaynotbewillingtoinvest,theresourcesnecessarytocontinuethedevelopmentofthenewtechnologiesto theextentsuchinvestmentsarenecessary,whichmayresultinourcontributingfundstosuchR&Dprogramsorlimiting theR&Dprogramsweundertake.

We Are Dependent on the Continued Operation of a Limited Number of Manufacturing Facilities

Allofourmanufacturingactivities,includingsubassembly,finalassemblyandsystemtesting,takeplaceinclean roomfacilitiesinVeldhoven,theNetherlands,inWilton,ConnecticutandinSanDiego,California,bothintheUnited States,inPyongtaek-City,South-KoreaandinLinkou,Taiwan.Thesefacilitiesmaybesubjecttodisruptionforavariety ofreasons,includingworkstoppages,fire,energyshortages,floodingorothernaturaldisasters.Wecannotensure thatalternativeproductioncapacitywouldbeavailableifamajordisruptionweretooccurorthat,ifsuchcapacity wasavailable,itcouldbeobtainedonfavorableterms.Suchadisruptioncouldhaveamaterialadverseeffectonour business,financialconditionandresultsofoperations.Inaddition,someofourkeysuppliers,includingZeiss,havea limitednumberofmanufacturingfacilities,thedisruptionofwhichmaysignificantlyandadverselyaffectourproduction capacity.

We May be Unable to Make Desirable Acquisitions or to Integrate Successfully Any Businesses We Acquire Ourfuturesuccessmaydependinpartontheacquisitionofbusinessesortechnologiesintendedtocomplement, enhanceorexpandourcurrentbusinessorproductsorthatmightotherwiseofferusgrowthopportunities.Ourability tocompletesuchtransactionsmaybehinderedbyanumberoffactors,includingpotentialdifficultiesinobtaining governmentapprovals.

Anyacquisitionthatwedomakewouldposerisksrelatedtotheintegrationofthenewbusinessortechnologywithour business.Wecannotbecertainthatwewillbeabletoachievethebenefitsweexpectfromaparticularacquisitionor investment.Acquisitionsmayalsostrainourmanagerialandoperationalresources,asthechallengeofmanagingnew operationsmaydivertourmanagementfromday-to-dayoperationsofourexistingbusiness.Ourbusiness,financial conditionandresultsofoperationsmaybemateriallyandadverselyaffectedifwefailtocoordinateourresources effectivelytomanagebothourexistingoperationsandanybusinessesweacquire.

InMay2013,weacquiredalloftheoutstandingsharesofCymer,alightsourcesupplier.Weexpectthattheacquisition ofCymerwillmakeEUVtechnologymoreefficient,preventadditionaldelaysintheintroductionofEUVtechnology,and simplifythesupplychainofEUVmodules.However,achievingthebenefitsoftheacquisitionwilldependinpartonthe integrationofouroperationsandemployeeswiththoseofCymerinatimelyandefficientmanner,andifwefailtodo so,thismayresultinadelayinthedevelopmentofEUV.TherecanbenoassurancethatCymerwillbesuccessfully integratedinourbusinessorthatanyoftheanticipatedbenefitswillberealized.Evenifweareabletosuccessfully integrateCymer,thereisnoassurancethatthistransactionwillresultinsuccessfuldevelopmentofourEUVtechnology.

Inaddition,inconnectionwithacquisitions,anti-trustregulatorsmayimposeconditionsonus,includingrequirements todivestassetsorotherconditionsthatcouldmakeitdifficultforustointegratethebusinessesthatweacquire.For example,inconnectionwiththeCymerAcquisitionwehaveagreedtomaintainCymerLightSourcesasastand-alone businesswhichwillmakeitmoredifficulttointegrateCymerLightSourcesintoourbusinessoperations.

Our Business and Future Success Depend on Our Ability to Attract and Retain a Sufficient Number of Adequately Educated and Skilled Employees

Ourbusinessandfuturesuccesssignificantlydependuponouremployees,includingalargenumberofhighlyqualified professionals,aswellasourabilitytoattractandretainemployees.Competitionforsuchpersonnelisintense,andwe maynotbeabletocontinuetoattractandretainsuchpersonnel.TheR&Dprogramsassociatedwiththecommitments madeundertheNREfundingarrangementssignedinrelationtotheCCIP,requireasignificantnumberofqualified employees.Ifweareunabletoattractsufficientnumbersofqualifiedemployees,thiscouldaffectourabilitytoconduct ourresearchprogramsonatimelybasis,whichcouldadverselyaffectourbusiness,financialconditionandresultsof operations.

Inaddition,theincreasingcomplexityofourproductsresultsinalongerlearning-curvefornewandexistingemployees andsuppliersleadingtoaninabilitytodecreasecycletimesandmayresultintheincurrenceofsignificantadditional costs,whichcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.

FinancialRisks

A High Percentage of Net Sales is Derived From a Few Customers

Historically,wehavesoldasubstantialnumberoflithographysystemstoalimitednumberofcustomers.Weexpect customerconcentrationtoincreasebecauseofcontinuingconsolidationinthesemiconductormanufacturingindustry. Consequently,whiletheidentityofourlargestcustomersmayvaryfromyeartoyear,weexpectsalestoremain concentratedamongrelativelyfewcustomersinanyparticularyear.In2013,recognizedsalestoourlargestcustomer accountedforEUR2,058.6million,or39.2percentofnetsales,comparedwithEUR1,236.1million,or26.1percentof netsales,in2012.Thelossofanysignificantcustomeroranysignificantreductioninordersbyasignificantcustomer mayhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Additionally,asaresultofourlimitednumberofcustomers,creditriskonourreceivablesisconcentrated.Ourthree largestcustomers(basedonnetsales)accountedforEUR861.4million,or73.3percentofaccountsreceivableand financereceivablesatDecember31,2013,comparedwithEUR535.1million,or58.9percentatDecember31,2012. Asaresult,businessfailureorinsolvencyofoneofourmaincustomersmayhaveamaterialadverseeffectonour business,financialconditionandresultsofoperations.

Fluctuations in Foreign Exchange Rates Could Harm Our Results of Operations

Weareexposedtocurrencyrisks.WeareparticularlyexposedtofluctuationsintheexchangeratesbetweentheU.S. dollar,Japaneseyenandtheeuro,asweincurmanufacturingcostsforoursystemspredominantlyineuroswhile portionsofournetsalesandcostofsalesaredenominatedinU.S.dollarsandJapaneseyen.

Inaddition,aportionofourassetsandliabilitiesandoperatingresultsaredenominatedinU.S.dollars,andasmall portionofourassets,liabilitiesandoperatingresultsaredenominatedincurrenciesotherthantheeuroandtheU.S. dollar.OurFinancialStatementsareexpressedineuros.Accordingly,ourresultsofoperationsandassetsandliabilities areexposedtofluctuationsinexchangeratesbetweentheeuroandsuchothercurrencies.Ingeneral,ourcustomers generallyruntheirbusinessesinU.S.dollarsandthereforeaweakeningoftheU.S.dollaragainsttheeuromightimpact theabilityordesireofourcustomerstopurchaseourproducts.

Furthermore,astrengtheningoftheeuroparticularlyagainsttheJapaneseyencouldfurtherintensifyprice-based competitioninthoseregionsthataccountforthemajorityofoursales,resultinginlowerpricesandmarginsanda materialadverseeffectonourbusiness,financialconditionandresultsofoperations.

ChangesincurrencyexchangeratesalsoaffectthecarryingvalueofassetsonourConsolidatedStatementofFinancial Position,whichdependingonthebalancesheetclassificationoftherelevantasset,canresultinlossesonour ConsolidatedStatementofFinancialPosition.Inparticular,theCymeracquisitionhassignificantlyincreasedourU.S. dollardenominatedassets,andasaresult,wearemoreexposedtofluctuationsintheU.S.dollar.

RisksRelatedtoOurOrdinaryShares

We May Not Declare Cash Dividends At All or in Any Particular Amounts in Any Given Year

Weaimtopayanannualdividendthatwillbestableorgrowingovertime.Annually,theBoardofManagementwill, uponpriorapprovalfromtheSupervisoryBoard,submitaproposaltotheAGMwithrespecttotheamountofdividend tobedeclaredwithrespecttotheprioryear.Thedividendproposalinanygivenyearwillbesubjecttotheavailability ofdistributableprofitsorretainedearningsandmaybeaffectedby,amongotherfactors,theBoardofManagement's viewsonourpotentialfutureliquidityrequirements,includingforinvestmentsinproductioncapacity,thefundingofour R&Dprogramsandforacquisitionopportunitiesthatmayarisefromtimetotime;andbyfuturechangesinapplicable incometaxandcorporatelaws.Accordingly,theBoardofManagementmaydecidetoproposenottopayadividendor payalowerdividendwithrespecttoanyparticularyearinthefuture,whichcouldhaveanegativeeffectonourshare price.

Restrictions on Shareholder Rights May Dilute Voting Power

OurArticlesofAssociationprovidethatwearesubjecttotheprovisionsofDutchlawapplicabletolargecorporations, called"structuurregime".Theseprovisionshavetheeffectofconcentratingcontrolovercertaincorporatedecisionsand transactionsinthehandsofourSupervisoryBoard.Asaresult,holdersofordinarysharesmayhavemoredifficultyin protectingtheirinterestsinthefaceofactionsbymembersofourSupervisoryBoardthanifwewereincorporatedinthe UnitedStatesoranotherjurisdiction.

Ourauthorizedsharecapitalalsoincludesaclassofcumulativepreferencesharesandwehavegranted"Stichting PreferenteAandelenASML",aDutchfoundation,anoptiontoacquire,attheirnominalvalueofEUR0.09pershare, suchcumulativepreferenceshares.Exerciseofthepreferenceshareoptionwouldeffectivelydilutethevotingpowerof ouroutstandingordinarysharesbyone-half,whichmaydiscourageorsignificantlyimpedeathirdpartyfromacquiringa majorityofourvotingshares.

Participating Customers in Our Customer Co-Investment Program Together Own a Significant Amount of Our Ordinary Shares

IntheCCIP,theParticipatingCustomers,throughcertainwholly-ownedsubsidiaries,acquired15percent,5percentand 3percent,ofourthenoutstandingshares,respectively(aftergivingeffecttoourSyntheticShareBuybackconductedin November2012).

TheinterestsoftheParticipatingCustomersmaynotalwayscoincidewiththeinterestsofotherholdersofourshares. ThesharesacquiredbytheParticipatingCustomersareheldbyDutchfoundationswhichhaveissueddepositary receiptsinrespectthereofandtheparticipatingcustomersmayonlyvotethosesharesinGeneralMeetingsin exceptionalcircumstances,includingtheauthorizationofcertainsignificantshareissuancesandsharerepurchases, theapprovalofasignificantchangeintheidentityornatureofASMLoritsbusiness,anyamendmenttoASML's ArticlesofAssociationthatwouldmateriallyaffectthespecificvotingrightsoftheParticipatingCustomersorthat wouldcauseasignificantchangeintheidentityornatureofASMLoritsbusiness,thedissolutionofASML,andany mergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureofASMLoritsbusiness.When suchexceptionalcircumstancesoccur,theParticipatingCustomers,andinparticularIntel(duetothepercentageofour sharesthatIntelowns),willbeabletoinfluencemattersrequiringapprovalbytheGeneralMeetingandmayvotetheir ordinarysharesinawaywithwhichothershareholdersmaynotagree.

TheParticipatingCustomershavealsoagreedthattheywillnot,withoutourpriorwrittenconsent,transferanyofthe ordinarysharestheyacquiredintheCCIP(ordepositaryreceiptsrepresentingthoseshares)untiltwoyearsandsix monthsafterthedatetheyacquiredsuchshares(September12,2012forIntelandSamsung;October31,2012for TSMC).Uponexpiryofsuchperiod,theordinarysharesheldbyParticipatingCustomersarefreelytransferable,subject toorderlymarketarrangementsandcertainotherrestrictions.AnysalesofsignificantamountsofsharesbyParticipating Customersintheprogramcouldhaveanegativeeffectonourshareprice.

Financial Risk Management

Weareexposedtocertainfinancialriskssuchasmarketrisk(includingforeigncurrencyriskandinterestraterisk), creditrisk,liquidityriskandcapitalrisk.Theoverallriskmanagementprogramfocusesontheunpredictabilityof financialmarketsandseekstominimizepotentiallyadverseeffectsonourfinancialperformance.Weusederivative financialinstrumentstohedgecertainriskexposures.Noneofourtransactionsareenteredintofortradingor speculativepurposes.Webelievethatmarketinformationisthemostreliableandtransparentmeasureforourderivative financialinstrumentsthataremeasuredatfairvalue.SeeNote6toourConsolidatedFinancialStatementsformore information.

Semiconductor Equipment Industry

Thechip-makingbusinessisfocusedon"shrink",orreducingthesizeofchipdesigns.Historicallythesemiconductor industryhasexperiencedsignificantgrowthlargelyduetothecontinualreductionofcostperfunctionperformedby ICs.ImprovementinthedesignandmanufactureofICswithhighercircuitdensitiesresultedinsmallerandcheaperICs capableofperformingalargernumberoffunctionsathigherspeedswithlowerpowerconsumption.Webelievethat theselong-termtrendswillcontinuefortheforeseeablefutureandwillbeaccompaniedbyacontinuingdemandfor productionequipmentthatiscapableofaccurateproductionofadvancedICsinhighvolumesatthelowestpossible cost.

Lithographyequipmentisusedtoprintcomplexcircuitpatternsontosiliconwafers,whicharetheprimaryrawmaterials forICs.Theprintingprocessisoneofthemostcriticalandexpensivestepsinwaferfabrication.Lithographyequipment isthereforeasignificantfocusoftheICindustry'sdemandforcost-efficientenhancementstoproductiontechnology.

Thecoststodevelopnewlithographyequipmentarehigh.Accordingly,thelithographyequipmentindustryis characterizedbythepresenceofonlyafewprimarysuppliers:ASML,Nikon,and(toalesserdegree)Canon.In2013, ASMLwasoneoftheworld'sleadingprovidersoflithographyequipment(measuredinrevenuesbaseduponGartner Dataquestfourthquarter2013report).

TotallithographyequipmentshippedbytheindustryasawholeinthesixyearsendedDecember31,2013,issetoutin thefollowingtable:

Year ended December 31	20131	20122	20112	20102	20092	20082
Totalunitsshipped	238	251	376	304	128	344
Totalvalue(inmillionsUSD)	5,641	6,002	8,225	6,416	2,485	5,388

1 Historicaldataandfull-year2013estimatesasreportedbyGartnerDataquestinitsfourthquarter2013report.

2 HistoricaldataarebasedonfiguresasincludedintheGartnerDataquestfourthquarter2013report.Whereappropriate,theestimatesasincludedin theGartnerDataquestreportsinprioryearshavebeenupdatedbasedonthisfourthquarter2013report.

Fortheyear2013,thelatestindicationsofindependentmarketanalystsshowadecreaseintotallithographyequipment shippedtothemarketbytheindustryof5.2percentinunitvolumeand6.0percentinvalue.In2013,thevalueofour netsystemssalesincreasedby5.0percentcomparedto2012.

Business Strategy

Thelong-termgrowthofthesemiconductorindustryistheresultoftheprinciplethatthepower,costandtimerequired foreverycomputationonadigitalelectronicdevicecanbereducedbyshrinkingthesizeoftransistorsonchips. In2013,chipmakersroutinelyproducedelectronicchipfeatureswithgeometriesof28nm,comparedtotypical geometriesof10,000nmintheearly1970s,resultinginanincreaseinthenumberoftransistorsonleadingchips fromseveralthousandtoovertwobillion.ThistrendwasfirstobservedbyIntelco-founderGordonMoorein1965, andisreferredtoas"Moore'sLaw".Moore'sLawhasresultedinourinformationsocietywithfastwiredandwireless communicationsbuiltonaffordablechips.Moore'sLawalsohasanimpactontheenergyusageofchips.Smaller geometriesallowformuchlowerelectricalcurrentstooperatethechip.Thishashelpedtocontaintheworld'senergy consumptiondespitetheproliferationofaffordablecomputing.Usingadvancedsemiconductorsinindustrialand consumerproductsoftenprovideseconomicbenefits,user-friendlinessandincreasedsafety.Thetechnologyrevolution poweredbysemiconductorshasbroughtmanyadvantages:notonlycaninformationbemorewidelydisseminatedthan everbefore,affordablechipintelligencehasalsoenabledindustryandservicesectorstocreateanddistributeproducts andideasatlightningspeed.

Smarter,smallerandmoreenergy-efficientchipsaremadewithincreasinglysophisticatedlithographysystemsproduced byASML.Lithographysystemsarecrucialtotheroadmapsofchipmakerstomakesmallertransistorsonchips.Our businessstrategyisbasedonmaintainingandfurtherdevelopingourpositionasatechnologyleaderinsemiconductor lithography.Whenexecuted,thisstrategyresultsinthedeliveryoflithographysystemswhichenablecustomersto producethehighestperformanceandlowestcostchips.Thesuperiorvalueofownershipofferedtocustomersasa resultofourstrategyalsomaximizesourownfinancialperformance,aligningtheinterestsofASMLandourcustomers.

Customer Focus

Ensuringcustomersareservedwiththerightproductsattherighttimeandsupportedbyexcellentservice,iskeytoour commitmenttoalong-termrelationship.Withhigh-valuedproducts,customersexpecthigh-qualitysupportcustomized totheirspecificrequirements.Thissupportincludesserviceengineers,equippedwiththelatesttechnicalinformation, toensurethehighestlevelsofsystemperformance,aswellasapplicationsspecialistswhosupportoptimalsystem processingandnewproductimplementation.

ASMLaimstodeliverlithographysystemswiththelowestcostofownership.

CustomersatisfactionisacriticalobjectiveofASML.Wehaveaccountteamsthatarespecificallydedicatedtocustomer satisfactionthroughoutthelifecycleofourproducts.

Through2013,allofthetop10chipmakersworldwide,intermsofsemiconductorcapitalexpenditure,wereour customers.Wealsohaveasignificantshareofcustomersoutsidethetop10.Westriveforcontinuedbusinessgrowth withallourcustomers.Weexpectthatcustomerconcentrationmightincreasebecauseofcontinuingconsolidationin thesemiconductormanufacturingindustry.

In2013,oursatisfactionratingsbycustomerssurpassedeverylithographycompetitor,accordingtoVLSIResearch, ASMLranksthirdinthesemiconductorindustryequipmentsuppliersandfirstamonglithographycompetitors.Our performancehasconsistentlybeengood:forelevenyearsinarowwehavebothrankedamongthetop5semiconductor industrysuppliersandourrankingsurpassedthatofanyofourlithographycompetitors.

Technology Leadership

Ourcustomersneedlithographyscannersthatcontinuouslyimproveperformanceinthreeareas:imaging,throughput andoverlay.Theimageoftheelectronicchipcircuitmustbeextremelysmall(currentlythesmallestfeatureshave asizeoflessthan30nm),thesystemmustbeabletoimagebillionsofthesefeatureseverysecondanditmustbe abletodothatwithextremeprecisionofjustafewnm(onenmisfoursiliconatoms).Torealizeandimprovethis systemperformanceforourcustomers,ASMLneedstodelivertherighttechnologyattherighttimetomeetlongtermroadmapswhichoftenextendmanyyearsintothefuture.Therefore,ASMLiscommittedtosignificantlong-term investmentsinR&D.In2013,ourR&Dinvestments(netofcredits)amountedtoEUR887.7million(2012:EUR599.4 million).AsignificantpartofourR&D-budgetwasusedforR&Djointlydevelopedwithoursuppliersandtechnology partners.Furthermore,in2013,werecognizedOtherIncomeinrelationtothecontributionsmadebyourParticipating CustomersofEUR64.4million.

Ourlithographyscannersarebasedonourdual-stagewaferimagingplatform,theTWINSCANsystem,whichwe introducedin2000andwhichallowsexposureofonewaferwhilesimultaneouslymeasuringthewaferwhichwillbe exposednext.Ourstrongleadershipinthiscapabilityhasallowedustoachievetheindustry'shighestproductivity, enablingreducedcost-per-exposureperwafer.Dual-stagelithographyalsosupportstherequiredoverlaytoposition electronicfeaturesonthewafer,asitallowsformoretimetomeasurethewaferpriortoexposure.Wearetheonly lithographymanufacturerthatenablesvolumeproductionbasedondual-stagesystems.

Inordertomeettheimaging,overlayandthroughputdemandsofourcustomers,wehavefocusedourR&Dinvestments onthreecoreprograms:EUV,Immersionandholisticlithographysolutions.

Ourinnovativeimmersionlithographysystemsplaceafluidbetweenthewaferandasystem'sprojectionlenstoenhance focusandenablecircuitline-widthtoshrinktosmallerdimensionsthanwhatispossiblewith"dry"lithographysystems. ASMLpioneeredthis"wet"technologyandhasexperiencedstrongdemandforimmersion-basedsystems,whichhave beenadoptedbymostofourcustomers.

Wehavedevelopeddifferentimmersionsystemsfordifferentcustomerneeds.TheTWINSCANNXTplatformenables nextgenerationsofsemiconductorsthroughtheso-calledDPTwhichrequirestwoexposuresperlayeronachip, enablingpreciseimagingpatternsandlinesbyusingourTWINSCANNXTplanarwaferstageandbreakthroughgrid metrology.In2013,weshippedourfirstfiveNXT:1970Cisystems,whichofferoverlaybelow2nm,focuscontrolofless than20nmandthroughputofmorethan250wafersperhour.Approximately250NXT:1950iandNXT:1960Bisystems arecurrentlyinusebyourcustomers,whicharefield-upgradeabletothesameperformancelevelasourNXT:1970Ci system.

In2010,weachievedamajormilestonewithEUVlithographywhenweshippedourfirstNXE:3100.TheNXE:3100 combinedawavelengthof13.5nmandanopticalsystemwithaNAof0.25toprovideimagingataresolutionof27 nm.Through2013,ourNXE:3100pre-productionsystemsexposedacumulativetotalofmorethan44,000wafersat customerssites,enablingsuccessfulrecipedevelopmentsforthesub14nmLogicand22nmDRAMnodes.

ThesuccessoroftheNXE:3100,theNXE:3300Bcombinesawavelengthof13.5nmandanopticalsystemwitha NAof0.33toprovideimagingataresolutionof22nm.TheenhancementsoftheNXE:3300Benabletheimproved performance,inthesamemannerthatupgradestotheNXTplatformimproveitsproductivity.In2013,thefirstofour third-generationEUVscannershasbeenrecognizedinsales.Asperyearend2013,thesecondandthirdNXE:3300B systemsarebeinginstalledatcustomersites.

OnMay30,2013,weconcludedtheacquisitionofCymerforatotalconsiderationofEUR3.1billion(USD4.1billion). SeeNote4totheFinancialStatements.WeexpectthattheacquisitionofCymerwillhelpustoachieveourstrategic objectiveofdeliveringaneconomicallyviableEUVscannertosemiconductormanufacturersassoonasreasonably possible.WebelievethatcombiningCymer'sexpertiseinEUVlightsourceswithourexpertiseinlithographysystems designandintegrationwillreducetherisksrelatedtothesuccessfuldevelopmentof,andacceleratetheintroductionof, EUVtechnology.ThisintegrationworkonourNXE:3300Bscannersandlightsourcesisprogressingsteadily.Weremain ontargettodeliversystemswithathroughputof70wafersperhourin2014,upgradeableto125wafersperhourin 2015.

Furthermore,asaconsequenceoftheacquisitionofCymer,wearenowabletoofferourcustomersOnPulse contracts.Thesecontractsofferacomprehensiveapproachtoenhancinglightsourceproductivity,offeringour customerspredictablelightsourcerunningcoststhatscaledirectlywithpulseutilization.WeprovideourOnPulse contractcustomerson-sitesupportfromcertifiedserviceengineersandcontinuousreal-timelightsourcemonitoring. ReplacementpartsandsupportarecoveredundertheOnPulsecontract,whichfacilitatescostsavingsforour customersaswellassimplifiedorderandassetmanagement.WebelievethatourOnPulsecontractsofferour customersmanycompellingbenefits,andthisproducthasbeenwell-receivedbyourcustomers.

Also,wecomplementourscannerproductswitharapidlyexpandingholisticlithographyportfolioofsoftwareand metrologyproductstohelpourcustomersoptimizesemiconductorscannerperformance,provideafasterstarttochip productionandachievebetterimagingathigherresolutions.Semiconductormanufacturersfaceincreasinglysmaller marginsoferrorastheyshrinkchipfeatures.Holisticlithographyprovidesawaytoshrinkwithinthesemargins,offering significantrevenue-generatingandcost-savingopportunitiestoourcustomers.In2013,weboostedsalesofYieldStar metrologysystemstoourleadingedgecustomers.Thesemachinesgeneratethedatausedbyourholisticlithography productstocontroloverlay,CDandfocusforthemostadvancedprocessnodes.

Operational Excellence

Westrivetosustainourbusinesssuccessbasedonourtechnologicalleadershipbycontinuingtoexecuteour fundamentaloperatingstrategy,includingreducinglead-timeswhileimprovingourcostcompetitiveness.Lead-timeis thetimefromacustomer'sordertoatooldelivery.

Ourbusinessstrategyincludesoutsourcingthemanufacturingofthemajorityofcomponentsandsubassembliesthat makeupourproducts.Weworkinpartnershipwithsuppliers,collaboratingonquality,logistics,technologyandtotal cost.Byoperatingourstrategyofvaluesourcing,westrivetoattainflexibilityandcostefficienciesfromoursuppliers throughmutualcommitmentandsharedriskandreward.Valuesourcingalsoallowstheflexibilitytoadapttothe cyclicalityoftheworldmarketforsemiconductorlithographysystems.

WehaveaflexiblelabormodelwithamixoffixedandflexiblecontractedlaborinourmanufacturingandR&Dfacilities inVeldhoven,theNetherlands,andpayrollemployeescompensatedunderapartlyvariablesalarystructurethrough ASML'sprofitsharingplan.FurthermoreinotherfacilitiesoutsidetheNetherlands,theapplicablelocallaborlawsand regulationsprovidesufficientflexibility.Bothmodelsreinforceourabilitytoadaptmorequicklytosemiconductormarket cycles,includingsupportforpotential24-hour,sevendays-a-weekproductionactivities.Bymaximizingtheflexibilityof ourtechnicallyskilledworkforce,wecanshortenlead-times:akeydriverofaddedvalueforourcustomers.

Inviewoftheeconomicvolatilityofthesemiconductorindustry,wecontinuetostrivetoachievemoreefficienciesinour operationsbyaddressingourcoststructureandstrengtheningourcapabilitytogeneratecash.

Our Business Model

Ourbusinessmodelisderivedfromour"ValueofOwnership"conceptwhichisbasedonthefollowingprinciples:

Offeringongoingimprovementsinthroughput,imagingandoverlaybyintroducingadvancedtechnologybased modularplatforms,advancedapplicationsandholisticlithographysolutionsoutsidethetraditionallithography business,eachresultinginlowercostsorhighervalueperproductforourcustomers;
Providingcustomerservicesthatensurerapid,efficientinstallation,superiorsupportandtrainingtooptimize manufacturingprocessesofourcustomers;
MaintainingappropriatelevelsofR&Dtoofferthemostadvancedtechnologysuitableforhigh-throughputandlowcostvolumeproductionattheearliestpossibledateenhancing/followingMoore'slaw;
Enhancingthecapabilitiesoftheinstalledbaseofourcustomersthroughongoingfieldupgradesofthroughput, imagingandoverlay,basedonfurthertechnologydevelopments;
Reducingthecycletimebetweenacustomer'sorderofasystemandtheuseofthatsysteminvolumeproduction;
Expandingoperationalflexibilityinresearchandmanufacturingbyreinforcingstrategicallianceswithworldclass partners,includingoutsourcingcompanies;
Improvingthereliabilityanduptimeofourinstalledsystembase;and
Providingrefurbishingservicesthateffectivelyincreaseresidualvaluebyextendingthelifeofequipment.

Manufacturing, Logistics and Suppliers

Ourbusinessmodelisbasedonoutsourcingproductionofasignificantpartofthecomponentsandmodulesthat compriseourlithographysystemsandsources,workinginpartnershipwithsuppliersfromallovertheworld.Our manufacturingactivitiescomprisethesubassemblyandtestingofcertainmodulesandthefinalassemblyandfine tuning/testingofacompletesystemfromcomponentsandmodulesthataremanufacturedtoourspecificationsbythird partiesandbyus.Allofourmanufacturingactivities(subassembly,finalassemblyandsystemfinetuning/testing)are performedincleanroomfacilitiesinVeldhoven,theNetherlands,inWilton,ConnecticutandinSanDiego,California, boththeUnitedStates,inPyongtaek,SouthKoreaandinLinkou,Taiwan.Weprocurestepper,sourceandscanner systemcomponentsandsubassembliesfromasinglesupplieroralimitedgroupofsuppliersinordertoensureoverall qualityandtimelinessofdelivery.Wejointlyoperateaformalstrategywithsuppliersknownas"valuesourcing",which isbasedoncompetitiveperformanceinquality,logistics,technologyandtotalcost.Theessenceofvaluesourcingisto maintainasupplybasethatisworldclass,globallycompetitiveandgloballypresent.

Ourvaluesourcingstrategyisbasedonthefollowingstrategicprinciples:

•Maintaininglong-termrelationshipswithoursuppliers;
•Sharingrisksandrewardswithoursuppliers;
•Dualsourcingofknowledge,globally,togetherwithoursuppliers;and
•Singlesourcingofproducts,wherepossibleorrequired.

Valuesourcingisintendedtoaligntheperformanceofoursupplierswithourrequirementsonquality,logistics, technologyandtotalcosts.

Zeissisoursinglesupplieroflenses,collectorsandothercriticalopticalcomponents.In2013,26.2percentofour aggregatecostofsaleswaspurchasedfromZeiss(2012:26.9percent).

ZeissishighlydependentonitsmanufacturingandtestingfacilitiesinOberkochenandWetzlar,Germany,andits suppliers.Moreover,Zeisshasafinitecapacityforproductionoflensesandopticalcomponentsforoursystemsand collectorsforourEUVsources.Theexpansionofthisproductioncapacitymayrequiresignificantlead-time.Fromtime totime,thenumberofsystemsweareabletoproducemaybelimitedbythecapacityofZeisstoprovideuswithlenses, collectorsandothercriticalopticalcomponents.In2013ourproductionwasnotlimitedbythedeliveriesfromZeiss.

OurrelationshipwithZeississtructuredasastrategicalliancepursuanttoseveralagreementsexecutedin1997and subsequentyears.Theseagreementsdefineaframeworkinallareasofourbusinessrelationship.Thepartnership betweenASMLandZeissisfocusedoncontinuousimprovementofoperationalexcellence.

Pursuanttotheseagreements,ASMLandZeisshaveagreedtocontinuetheirstrategicallianceuntileitherparty providesatleastthreeyearsnoticeofitsintenttoterminate.

InadditiontoZeiss,wealsorelyonotheroutsidevendorsforthecomponentsandsubassembliesusedinoursystems andlightsources,eachofwhichisobtainedfromalimitednumberofsuppliers.Seealso"RiskFactors-TheNumberof SystemsWeCanProduceisLimitedbyOurDependenceonaLimitedNumberofSuppliersofKeyComponents".

Organizational Structure

ASMLHoldingN.V.isaholdingcompanythatoperatesthroughitssubsidiaries.Ourmajoroperatingsubsidiaries,each ofwhichisawholly-owned(directorindirect)subsidiary,areASMLNetherlandsB.V.,ASMLSystemsB.V.,ASMLHong KongLimitedandASMLUSInc.

SeeNote28toourConsolidatedFinancialStatementsforalistofourmainsubsidiaries.

ASML Operations Update

ThefollowingtablepresentstheKPIusedbyourBoardofManagementandseniormanagementtomeasure performanceinourmonthlyoperationalreviewmeetings.ThefiguresinthetablebelowarebasedonUSGAAP.

Year ended December 31	2013		2012
(in millions)	EUR	1 %	EUR	1 %
Sales
Netsales	5,245.3		4,731.5
Increase(decrease)innetsales(%)	10.9		(16.3)
Netsystemsales	3,993.1		3,801.6
Netserviceandfieldoptionsales	1,252.2		929.9
Salesofsystems(inunits)	157		170
ASPoftotalsystemsales	25.4		22.4
ASPofnewsystemsales	27.4		24.8
ASPofusedsystemsales	6.9		7.6
ValueofsystemsbacklogexcludingEUV2	1,953.3		1,214.1
SystemsbacklogexcludingEUV(inunits)2	56		46
ASPofsystemsbacklogexcludingEUV2	34.9		26.4
ASPofsystemsbacklogexcludingEUV(New)2	41.4		29.8
ASPofsystemsbacklogexcludingEUV(Used)2	4.7		4.0
Immersionsystemsrecognized(inunits)3	77		72
NXEsystemsrecognized(inunits)4	1		1
Profitability
Grossprofit	2,177.2	41.5	2,005.2	42.4
Operatingincome	1,047.9	20.0	1,156.8	24.4
Netincome	1,015.5	19.4	1,146.3	24.2
Liquidity
Cashandcashequivalents	2,330.7		1,767.6
Short-terminvestments	679.9		930.0
Operatingcashflow	1,054.2		703.5

1 Asapercentageofnetsales.

2 Oursystemsbacklogandnetbookingsincludeonlyordersforwhichwrittenauthorizationshavebeenacceptedandsystemshipmentandrevenue recognitiondateswithinthefollowing12monthshavebeenassigned.

3 Includedinthetotalnumberofimmersionsystemsrecognizedin2013is4unitsofourmostadvancedimmersiontechnologyNXT:1970Cisystems (2012:nil)

4 In2013,thefirstofourthird-generationEUVscannershasbeenrecognizedinsales.Asperyearend2013,thesecondandthirdNXE:3300Bsystems arebeinginstalledatcustomersites.

TheConsolidatedFinancialStatementsincludedinthisStatutoryAnnualReportarebasedonIFRS-EU,therefore,the resultsofoperationsanalysissetoutintheremainderofthisparagraphisbasedonIFRS-EU.Foradetailedexplanation ofthedifferencesbetweenU.S.GAAPandIFRS-EU,werefertopages54and55.

Results of Operations

SetforthbelowareourConsolidatedStatementofProfitorLossdataforthetwoyearsendedDecember31,2013and 2012:

2012	2013	Year ended December 31
EUR	EUR	(in millions)
4,731.5	5,245.3	Netsales
(2,835.7)	(3,159.3)	Costofsales
1,895.8	2,086.0	Grossprofit
0.0	64.4	Otherincome
(298.1)	(564.0)	Researchanddevelopmentcosts
(256.5)	(311.3)	Selling,generalandadministrativecosts
1,341.2	1,275.1	Operatingincome
(3.3)	(18.8)	Interestandother,net
1,337.9	1,256.3	Incomebeforeincometaxes
(35.6)	(62.5)	Benefitfrom(provisionfor)incometaxes
1,302.3	1,193.8	Netincome

Thefollowingtableshowsasummaryofnetsales,unitssold,grossprofitandASPdatafortheyearsendedDecember 31,2013and2012:

2012	2013	Year ended December 31 (in millions EUR, unless otherwise indicated)

4,731.5	5,245.3	Netsales
3,801.6	3,993.1	Netsystemsales
929.9	1,252.2	Netserviceandfieldoptionsales
170	157	Totalsalesofsystems(inunits)
146	142	Totalsalesofnewsystems(inunits)
24	15	Totalsalesofusedsystems(inunits)
40.1	39.8	Grossprofitasapercentageofnetsales
22.4	25.4	ASPofsystemsales
24.8	27.4	ASPofnewsystemsales
7.6	6.9	ASPofusedsystemsales

Sales

NetsalesincreasedbyEUR513.8million,or10.9percent,toEUR5,245.3millionin2013fromEUR4,731.5millionin 2012,mainlydrivenbytheincreaseinnetserviceandfieldoptionsalesofEUR322.3million,or34.7percenttoEUR 1,252.2millionin2013fromEUR929.9millionin2012.Theincreaseinnetserviceandfieldoptionsalesismainly causedbytheexpansionofHolisticLithographythroughincreasedsalesofintegratedmetrologyandfeedbackloop technologyandbyOnPulserevenuesasaresultoftheacquisitionofCymer.

TheincreaseinnetsystemsalesofEUR191.5million,or5.0percent,toEUR3,993.1millionin2013fromEUR3,801.6 millionin2012ismainlycausedbyanincreasedASPwhichmorethanoffsetstheloweramountofsystemssold.

TheincreaseoftheASPofoursystemssoldcanmainlybeexplainedbytheASPofournewsystemssoldwhich increasedtoEUR27.4millionin2013fromEUR24.8millionin2012,whichwastheresultofashiftinthemixof systemssoldtowardsmorehigh-endsystemtypes,NXT:1960BiandNXT:1970CiandincludingoneNXE:3300B.

Through2013,allofthetop10chipmakersworldwide,intermsofsemiconductorcapitalexpenditure,wereour customers.In2013,recognizedsalestoourlargestcustomeraccountedforEUR2,058.6million,or39.2percentofour netsales.In2012,recognizedsalestoourlargestcustomeraccountedforEUR1,236.1million,or26.1percentofour netsales.

GrossprofitincreasedbyEUR190.1milliontoEUR2,086.0millionor39.8percentofnetsalesin2013fromEUR 1,895.8millionor40.1percentofnetsalesin2012.Highergrossprofitwasmainlydrivenbytheincreasednetsystem sales.Grossprofitasapercentageofnetsalesin2013decreasedcomparedto2012,mainlyduetoa1.5percent impactfromnon-cashpurchasepriceaccountingadjustmentsrelatedtotheCymeracquisition.

Other Income

OtherincomeconsistsofcontributionsforR&DprogramsundertheNREfundingarrangementsfromParticipating CustomersoftheCCIPandamountedtoEUR64.4millionfor2013(2012:nil).

Research and Development Costs

R&DinvestmentsofEUR887.7million,comprisingofR&Dcosts(includingdevelopmentcostsnoteligiblefor capitalization),netofcredits,ofEUR564.0million(2012:EUR301.3million)andcapitalizationofdevelopment expendituresofEUR323.7million(2012:EUR298.1million)weresignificantlyhigherthanin2012(EUR599.4million). OverallR&DinvestmentsincreasedasaresultoftheacquisitionofCymerandfurtherinvestmentsinourotherstrategic programs(EUV,immersionandholisticlithography).

Selling, General and Administrative costs

SG&AcostsincreasedbyEUR54.8million,or21.4percent,toEUR311.3millionin2013,fromEUR256.5millionin 2012.TheincreasewasmainlydrivenbytheacquisitionandsubsequentintegrationofCymerandincurredrestructuring expenses.

Profitability

Ourtargetistoachieveannualincomefromoperationsaspercentageofnetsalesofgreaterthan20percent.However inexceptionalcircumstances,asevidencebythefinancialandeconomiccrisisin2009,wecouldseeperiodswith incomefromoperationsthataresubstantiallybelowourminimumtargetlevel.

Interest and Other, Net

Interestandother,netincreasedbyEUR15.5milliontoEUR18.8millionexpensein2013fromEUR3.3millionexpense in2012.ThisincreaseismainlyexplainedbythelossonthepartialextinguishmentofourEUR600million5.75percent seniornotesdue2017andalowerinterestgeneratedonourcashandcashequivalentsandshort-terminvestments compared.

Income Taxes

Theeffectivetaxrateincreasedto5.0percentofincomebeforeincometaxesin2013comparedto2.7percentin2012. In2013,theeffectivetaxratewasimpactedbythesettlementofthefavorablepre-existingrelationshipsbetweenCymer andASML.Thissettlementgainisnotrecognizedfortaxpurposesandwas,apartfromtheR&Dtaxincentives,the majordriverforthechangeintheeffectivetaxratein2013.In2012,theeffectivetaxratewasamongstothersimpacted byaone-timetaxbenefitresultingfromsuccessfulconclusionoftaxaudits.Themovementintheliabilityforuncertain taxbenefitsin2013isconsideredtobelimitedcomparedto2012.

Net Income

Netincomein2013amountedtoEUR1,193.8million,or22.8percentofnetsales,representingEUR2.78basicnet incomeperordinaryshare,comparedwithnetincomein2012ofEUR1,302.3million,or27.5percentofnetsales, representingEUR3.07basicnetincomeperordinaryshare.

Liquidity

OurcashandcashequivalentsincreasedtoEUR2,330.7millionasofDecember31,2013fromEUR1,767.6millionas ofDecember31,2012andourshort-terminvestmentsdecreasedtoEUR679.9millionasofDecember31,2013from EUR930.0millionasofDecember31,2012.

WegeneratednetcashprovidedbyoperatingactivitiesofEUR1,381.0millionandEUR999.3millionin2013and2012 respectively.Highernetcashprovidedbyoperatingactivitiesin2013comparedto2012relatestoincreasedsaleslevels andadecreaseofourworkingcapital,mainlyduetoanincreaseinaccountspayable.

WeusedEUR692.0millionininvestingactivitiesin2013andEUR1,413.4millionin2012.In2013,ourinvesting activitiesmainlyrelatedtothecashconsiderationpaidfortheacquisitionofCymerofEUR443.7millionandthe purchaseofproperty,plantandequipmentofEUR210.8million,mainlyrelatedtofurtherexpansionofourEUV productionfacilities.Thiswastoalargeextentoffsetbythedecreaseofshort-terminvestments,mainlyinDutch TreasuryCertificatesanddepositswiththeDutchgovernment,ofEUR290.2million.In2012ourinvestingactivities primarilyrelatedtoourshort-terminvestmentsinDutchTreasuryCertificatesanddepositswiththeDutchgovernmentof EUR930.0millionandpurchasesofproperty,plantandequipmentofEUR171.9millionandthepurchaseofintangible assetsofEUR301.2million.

NetcashusedinfinancingactivitieswasEUR116.3millionin2013comparedwithnetcashusedinfinancingactivities ofEUR547.8millionin2012.InSeptember2013,wecompletedanofferingofEUR750million3.375percentsenior notesdue2023withinterestpayableannuallyonSeptember19and,simultaneously,werepurchasedanominalamount ofEUR361.8millionofourEUR600million5.75percentseniornotesdue2017inatenderoffer. In2013,netcashusedinfinancingactivitiesincludedthenetcashproceedsofEUR740.4millionfromournotes offeringandnetcashproceedsofEUR31.8millionfromtheissuanceofsharesinconnectionwiththeexerciseand purchaseofemployeestockoptions,mainlyoffsetbynetcashoutflowsofEUR368.3millionforournotestenderoffer andunwindingofrelatedinterestrateswaps,EUR300.0millionforourregularsharebuybackprogramandEUR216.1 millionforourannualdividendpayment.In2012,netcashusedinfinancingactivitiesincludesthenetcashoutflowof EUR3,728.3millionfortheSyntheticShareBuyback,EUR535.4millionforourregularsharebuybackprogramsand EUR188.9millionforourannualdividendpayment,toalargeextentoffsetbytheproceedsofEUR3,853.9millionfrom issuanceofsharesundertheCCIPandEUR53.8millionnetproceedsfromissuanceofsharesinconnectionwiththe exerciseandpurchaseofemployeestockoptions.

Ourprincipalsourcesofliquidityconsistofcashflowsfromoperations,cashandcashequivalentsasofDecember31, 2013ofEUR2,330.7million,short-terminvestmentsasofDecember31,2013ofEUR679.9millionandavailablecredit facilitiesasofDecember31,2013ofEUR700.0million.Inaddition,wemayfromtimetotimeraiseadditionalcapitalin debtandequitymarkets.Ourgoalistoremainaninvestmentgraderatedcompanyandmaintainacapitalstructurethat supportsthis.

Weinvestourcashandcashequivalentsandshort-terminvestmentsinshort-termdepositswithfinancialinstitutions thathavegoodcreditratingsandtheDutchgovernment,inDutchTreasuryCertificatesandinAAAm-ratedmoney marketfundsthatinvestinhigh-ratedshort-termdebtsecuritiesoffinancialinstitutionsandgovernments.Our investmentsarepredominantlydenominatedineurosandpartlyinU.S.dollars.

OuravailablecreditfacilityconsistsofanEUR700.0millioncommittedrevolvingcreditfacilityfromagroupofbanks thatwillmaturein2018.Thecreditfacilitycontainsarestrictivecovenantthatrequiresustomaintainaminimum committedcapitaltonettotalassetsratioof40.0percentcalculatedinaccordancewithcontractuallyagreed definitions.Attheendof2013,wewereincompliancewiththecovenant.Outstandingamountsunderthiscredit facilitywillbearinterestatEURIBORorLIBORplusamarginthatdependsonourliquidityposition.Noamountswere outstandingunderthecreditfacilityasoftheendof2013.

Wehaverepaymentobligationsin2017,amountingtoEUR238.2millionandin2023,amountingtoEUR750.0million, bothrelatingtoourEurobonds.

ASMLseekstoensurethatcashgeneratedfromoperations,togetherwiththeliquidityprovidedbyexistingcash andcashequivalentsandshort-terminvestmentsanditsborrowingcapability,willbesufficienttosatisfyitsliquidity requirementsthroughouteveryphaseoftheindustrycycles.

Ourliquidityneedsareaffectedbymanyfactors,someofwhicharebasedonthenormalon-goingoperationsofthe business,andothersthatrelatetotheuncertaintiesoftheglobaleconomyandthesemiconductorindustry.Although ourcashrequirementsfluctuatebasedonthetimingandextentofthesefactors,webelievethatcashgeneratedfrom operations,togetherwiththeliquidityprovidedbyexistingcashandcashequivalentsandshort-terminvestmentsand ourborrowingcapabilityaresufficienttosatisfyourcurrentrequirements,includingourexpectedcapitalexpendituresin 2014.Weintendtoreturncashtoourshareholdersonaregularbasisintheformofdividendpaymentsand,subjectto ouractualandanticipatedliquidityrequirementsandotherrelevantfactors,sharebuybacksorcapitalrepayment.

SeeNotes6,18,19,20and21toourConsolidatedFinancialStatementsforfurtherreference.

Trend Information

In2013,ourbusinesswassupportedbycontinuingmomentumintheLogicsegmentwithcustomersstartingtoadd capacityatthe20nmnode,drivenbythemobileapplicationsmarket.Thememorysegmentcontinuedtopickupinlight oftightmobileDRAMcapacity.NANDmemorybitdemandisonasteadygrowthpathwithastablemarketoutlook, underpinningtechnologyandcapacityinvestmentsin2014.

Thefollowingtablesetsforthoursystemsbacklog,excludingEUV,asofDecember31,2013and2012.

2012	2013	Year ended December 31
		(in millions EUR, unless otherwise indicated)
40	46	NewsystemsbacklogexcludingEUV(inunits)
6	10	UsedsystemsbacklogexcludingEUV(inunits)
46	56	TotalsystemsbacklogexcludingEUV(inunits)
1,190.1	1,906.2	ValueofnewsystemsbacklogexcludingEUV
24.0	47.1	ValueofusedsystemsbacklogexcludingEUV
1,214.1	1,953.3	TotalvalueofsystemsbacklogexcludingEUV
29.8	41.4	ASPofnewsystemsbacklogexcludingEUV
4.0	4.7	ASPofusedsystemsbacklogexcludingEUV
26.4	34.9	ASPoftotalsystemsbacklogexcludingEUV

Outlook

Oursystemsbacklogincludesonlyordersforwhichwrittenauthorizationshavebeenacceptedandsystemshipment andrevenuerecognitiondateswithin12monthshavebeenassigned.Historically,ordershavebeensubjectto cancellationordelaybythecustomer.Duetopossiblecustomerchangesindeliveryschedulesandtocancellation oforders,oursystemsbacklogatanyparticulardateisnotnecessarilyindicativeofactualsalesforanysucceeding period.

Forthefirstquarterof2014,weexpectnetsalesofaroundEUR1.4billionandotherincomeofaboutEUR20million, whichconsistsofcontributionsfromparticipantsoftheCCIP.

Subjecttomarketconditions,weexpectthatourcapitalexpenditures(purchasesofproperty,plantandequipment)in 2014willbeaboutEUR480million(2013:EUR210.8million).Theseexpenditureswillmainlyconsistofinvestments usedforthefurtherexpansionofourEUVproductionfacilitiesenablingustomeetfuturedemandforEUVsystemsand ofinvestmentsinourotherstrategicprograms(e.g.Immersion).Weexpecttofinancethesecapitalexpendituresthrough cashgeneratedbyoperationsandcashandcashequivalents,aswellasNREfundingpayments.

Weexpectourheadcount(payrollandtemporaryemployees)toslightlyincreaseduring2014,mainlyfollowingfrom increasedoperationalactivitiesandtheaccelerationofourR&Dactivities.

Cymer Merger

OnOctober16,2012,ASMLenteredintoamergeragreementwithCymer,acompanyengagedinthedevelopment, manufacturingandmarketingoflightsourcesforsaletocustomerswhomanufacturephotolithographytoolsinthe semiconductorequipmentindustry(the"MergerAgreement").TheMergerAgreementprovidedfortheacquisitionof alloutstandingsharesofCymerbyawholly-ownedsubsidiary,ASMLUSinc.,anindirectwholly-ownedsubsidiary ofASML.TheMergerAgreementalsocontainedcertaincustomaryrepresentationsandwarranties,covenantsand indemnities.ThetransactionwascompletedonMay30,2013,inaccordancewiththetermsoftheMergerAgreement, foratotalconsiderationofEUR3.1billion(USD4.1billion).SeeNote4.

Customer Co-Investment Program

Overview

OnJuly9,2012,weannouncedourCCIPtoaccelerateourdevelopmentofEUVtechnologybeyondthecurrent generationandourdevelopmentoffuture450mmsiliconwafertechnology.TheParticipatingCustomerscollectively agreedtofundEUR1.38billionofourresearchanddevelopmentprojectsfrom2013through2017.Thisprogram createdrisksharingwithsomeofourlargestcustomerswhiletheresultsofASML'sdevelopmentprogramswillbe availabletoeverysemiconductormanufacturerwithnorestrictions.TheR&DfundingprogramintheCCIPconsistsof twofundingprojects:a450mmtechnologydevelopmentprojectandanext-generationEUVdevelopmentproject.ASML enteredintoNREFundingAgreementswiththeParticipatingCustomers.

Inadditiontothefundingcommitmentsdescribedabove,theParticipatingCustomershaveinvestedinordinaryshares equal,inaggregate,to23percentofASML'sissuedsharecapital(calculatedgivingeffecttoourSyntheticShare BuybackinNovember2012).Theproceedsoftheshareissuance,EUR3.85billion,werereturnedtotheholdersof ordinaryshares(excludingtheParticipatingCustomers)throughaSyntheticShareBuybackexecutedinNovember2012. ForfurtherinformationregardingtheSyntheticShareBuyback,seeNote26toourFinancialStatements.

Description of Investment Agreements, Shareholder Agreements and NRE Funding Agreements

InconnectionwiththeCCIP,ASMLenteredintoaninvestmentagreement,ashareholderagreementandNREFunding AgreementswitheachoftheParticipatingCustomers.Intelisthelargestparticipantintheprogram,withanaggregate fundingcommitmentofEUR829millionandaninvestmentin15percentofourordinaryshares(calculatedgiving effecttoourSyntheticShareBuybackinNovember2012).Adescriptionoftheinvestmentagreement,shareholders agreementandNREFundingAgreementsbetweenASMLandIntelissetoutbelow.TheagreementsbetweenASML andtheotherprogramparticipants-TSMC(whichacquired5percentofoursharesandmadeanEUR276million fundingcommitment)andSamsung(whichacquired3percentofoursharesandmadeanEUR276millionfunding commitment)areonsubstantiallythesametermsasthoseagreedwithIntel.ShareswereacquiredbyDutchfoundations ("Stichtingen")establishedforeachparticipant.

Investment Agreement

PursuanttotheIntelInvestmentAgreementbetweenASMLandIntel,datedJuly9,2012,ASMLagreedtoissuetoa foundationestablishedforthelntelStichtingordinarysharesequalto15percentofASML'sissuedordinaryshares; theIntelStichtingissuedtoInteldepositaryreceiptsrepresentingtheordinaryshares.Thesubscriptionpriceforthe ordinarysharesissuedtoIntelwasEUR39.91perordinaryshare,whichistheaverageofthevolumeweightedaverage priceofourshareslistedatNYSEEuronextAmsterdamforthetwentytradingdaysuptoandincludingJuly6,2012.

UndertheIntelInvestmentAgreement,ASMLhasagreedtoindemnifyIntel,anditsaffiliatesforcertainlossesand expensesrelatedtobreachesofrepresentations,warranties,covenantsandagreementsintheInvestmentAgreements andwithrespecttocertainlegalproceedingsrelatedthereto,subjecttocertainlimitations.

Shareholder Agreement

InconnectionwiththeissuanceofsharespursuanttotheIntelInvestmentAgreement,onSeptember12,2012ASML, IntelandtheIntelStichtingenteredintoaShareholderAgreementwhichgovernscertainmattersrelatingtotheholding ofandfurtherinvestmentbyIntelinordinarysharesofASML,directlyandindirectlythroughtheIntelStichting,including themattersdescribedbelow.

Voting Restrictions

PursuanttotheIntelShareholderAgreement,Intel(andtheIntelStichting)willnotbeentitledtovotetheordinaryshares thatwereacquiredbytheIntelStichtingaspartoftheCCIPoranyotherordinarysharesotherwisetransferredtothe IntelStichting(underthecircumstancesdescribedunder"Standstill;AdditionalPurchases"below)priortoaShareholder AgreementTerminationEvent(asdefinedbelow),exceptwhenaSuspensionEvent(asdescribedbelow)occursand iscontinuingorwherethefollowingmattersareproposedatanyGeneralMeeting(the"VotingRestrictions"):(i)an issuanceofASMLsharesorgrantofrightstosubscribeforASMLsharesrepresenting25percentormoreoftheissued andoutstandingsharecapitalofASMLortherestrictionorexclusionofpre-emptionrightsrelatingthereto(ineach case,onanaggregatebasisduringthepreceding12months)orthedesignationoftheBoardofManagementasthe authorizedbodytoresolveonthesematters;(ii)anauthorizationtorepurchase25percentormoreofASML'sissued andoutstandingsharecapitalonanaggregatebasisduringthepreceding12months;(iii)theapprovalofasignificant changeintheidentityornatureofASMLoritsbusiness,includingatransferofallorsubstantiallyallbusinessorassets ofASMLanditssubsidiariestoathirdparty,theestablishmentorcancellationofalong-lastingcooperationofessential importancewithathirdpartyandanacquisitionordispositionofaninterestinthecapitalorassetsofapersonwith avalueofatleastonethirdoftheassetsofASML(onaconsolidatedbasis);(iv)anamendmenttoASML'sArticlesof AssociationthatwouldmateriallyaffectthespecificvotingrightsofIntel,wouldmateriallyaffecttheidentityornature ofASMLoritsbusiness,orwoulddisproportionately(oruniquely)andadverselyaffecttherightsorbenefitsattached toorderivedfromtheordinarysharesheldbyIntelthroughtheIntelStichtingascomparedtotheshareholders;(v)the dissolutionofASML;and(vi)anymergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureof ASMLoritsbusiness.

Standstill, Lock-up and Orderly Market Arrangements

Standstill;AdditionalPurchases

Subjecttocertainexceptions,pursuanttotheShareholderAgreement,Intel(oritsaffiliates)maynot,priortothe six-yearanniversaryofthedateoftheIntelShareholderAgreement(the"StandstillPeriod"),acquiremorethan19.9 percentoftheoutstandingsharecapitalofASMLwithoutASML'spriorapproval(the"StandstillRestriction").Thereis anexceptionfromtheStandstillRestrictioninthecaseofa'suspensionevent',whichincludescertaincircumstances whereathirdpartyhasacquiredormadeanoffertoacquireatleast20percentofASML'soutstandingshares,andthe StandstillRestrictionwillterminateupontheoccurrenceofaShareholderAgreementTerminationEvent.

TheShareholderAgreementpermitsIntel(anditsaffiliates)toacquireupto4.99percentofASML'soutstandingshares (otherthansharesacquiredthroughtheCCIP)thatmaybeheldoutsidetheIntelStichting.ForanyadditionalASML sharesthatIntel(oritsaffiliates)acquiresinexcessof4.99percentoftheoutstandingsharesofASML,Intelisrequired todepositsuchshareswiththeIntelStichtinginexchangeforDepositaryReceipts.ShareshelddirectlybyIntelorits affiliates(andwhichnotrequiredtobedepositedwiththeIntelStichting)arenotsubjecttotheVotingRestrictions,or Lock-UpRestrictions(asdefinedbelow),butaresubjecttotheStandstillRestriction.

TheIntelStichtingwillcontinuetoholdASMLsharesownedbyIntel(notwithstandingterminationoftheStandstill Period)untiltheearlierof(i)suchtimeasIntelowns(directlyorthroughtheIntelStichting)lessthan2percentof ASML'soutstandingshares(therelevantpercentageis1percentfortheotherParticipatingCustomers)(ii)thedate ofnotificationtoASMLbyParticipatingCustomersthattheaggregateamountofASML'soutstandingsharesowned byIntelandtheotherParticipatingCustomersrepresentslessthan5percentofASML'soutstandingsharesand(iii) aShareholderAgreementTerminationEvent(asdefinedbelow),followingwhichtimeDepositaryReceiptswillbe exchangedfortheunderlyingASMLshares.IncaseIntelwouldacquireASMLshareswithin18monthsafteranevent describedunder(i)or(ii)above,anyASMLsharesheldbyIntelinexcessof4.99percentoftheoutstandingsharesof ASMLmustbetransferredto(andheldby)theIntelStichting.

Lock-up;OrderlySellDown

Intelmaynot,withoutpriorwrittenconsentofASML,transferanyordinarysharesorDepositaryReceiptsuntilthe earliestof(i)twoyearsandsixmonthsafterthedateoftheIntelShareholderAgreement,(ii)terminationoftheNRE FundingAgreements,and(iii)theoccurrenceofaShareholderAgreementTerminationEvent((i),(ii)and(iii)together,the "Lock-UpRestriction").TheLock-UpRestrictiondoesnotapplyincertaincircumstanceswhereathirdpartyoffersto acquireatleast20percentofASML'sshares.IntelisnotpermittedtotransfertheASMLordinarysharesitacquiredin theprograminconnectionwithanoffer(beforetheendoftheoffer),ormakeanypublicstatementinsupportofsuch offer,thatisnotrecommendedbytheASMLSupervisoryBoardorManagementBoard,exceptinlimitedcircumstances.

Inaddition,Intelmaynot(evenaftertheLock-UpRestrictionhasended),withoutwrittenconsentofASML,transfer onNYSEEuronextAmsterdam,NASDAQoranothersecuritiesexchangemorethan(i)inrespectofIntel,4percentof theoutstandingsharesofASMLduringanysixmonthperiod(therelevantpercentageis1.5percentforSamsungand 2.5percentforTSMC).TherearealsorestrictionsonIntel'sabilitytotransferASMLsharestocertaincompetitorsor customersofASML.

Termination

TheIntelShareholderAgreementwillterminateupontheoccurrenceofthefollowingevents(eacha"Shareholder AgreementTerminationEvent")(i)certainchangeofcontroltransactionsweretheshareholdersofASMLpriortosuch atransactionarenolongerentitledtoexerciseatleast50percentofthevotesintheGeneralMeetingfollowingsuch transaction,(ii)intheeventofadelistingofourshareslistedatNYSEEuronextAmsterdamordelistingofourshares listedatNASDAQ(exceptforcertainvoluntarydelistingsfromNASDAQ),(iii)thewindinguporliquidationofASML,or (vi)intheeventthatallDepositaryReceiptsareexchangedforASMLsharesandInteldoesnotacquireASMLsharesin excessof4.99percentoftheoutstandingASMLshareswithin18monthsofsuchexchange(see"Standstill;Additional Purchases"above).

NRE Funding Agreements

Intel NRE Funding Agreements

OnJuly9,2012,ASMLandIntelenteredintotwoNREFundingAgreementspursuanttowhichIntelhasagreedto fundcertainofASML'sR&Dcostsandprojectexpenditures.OneagreementrelatestotheIntel450mmNREFunding AgreementandtheotherrelatestotheIntelEUVNREFundingAgreement(togethertheIntelNREFundingAgreements). IntelhascommittedtoprovidefundinginanaggregateamountofEUR553millionundertheIntel450mmNREFunding AgreementandfundinginanaggregateamountofEUR276millionundertheIntelEUVNREFundingAgreement, payableoverthetermoftherelevantagreements(2013-2017).Undertheagreements,ASMLretainssolecontrolover thedevelopmentof450mmphotolithographyequipmentandEUVplatformsandwillownallintellectualproperty createdbyASMLinconnectiontherewith.TheNREFundingAgreementsprovidethatifASML,initsreasonable discretion,determinestoabandoneitherthe450mmorEUVdevelopmentproject,asaresultoftechnicalinfeasibility orlackofsufficientindustrydemand,orifthethenremainingfundingexceedstheexpenditureestimateforthe developmentproject(450mmorEUV),thenthepartiesmayagreeonanalternativedevelopmentproject.Ifnoalternative isagreed,ASMLmayinvoiceIntelfortheremainingdueportionofcommittedfundingduringeachyearoftheremaining fundingperiodinwhichASML'sactualgrossR&Dexpendituresexceedaminimumthresholdspecifiedintherelevant IntelNREFundingAgreement.

TheNREFundingAgreementswillterminateonDecember31,2017oruponpre-paymentbyInteloftheaggregate amountoffundingowedundertheIntelNREFundingAgreements

Development 450mm silicon wafer technology

InNovember2013,followingourcustomers'decision,ASMLdecidedtopausethedevelopmentof450mmlithography systemsuntilcustomerdemandandthetimingrelatedtosuchdemandisclear.Webelievethatour450mm developmentactivitiescanberestartedifandwhentheindustrydemandstheintroductionof450mm.Since450mm requiresbothgenericdevelopmentsandwafersize-specificdevelopments,manyofouremployeesinvolvedinthe 450mmprojectaredoingworkthatisjustasrelevantforfutureDUVandEUVplatforms.Theteamsandpeoplehave thereforebeenreassignedtodifferentprojects.

UnderourCCIP,wearepartytoa450mmNREFundingAgreementwithIntelforatotalNREfundingcommitmentof EUR553million.WearecurrentlyindiscussionswithInteltodetermineappropriateprojectstowhichtoapplythe 450mmNREfunding.

UndertheCCIP,wearealsopartytoEUVNREagreementswithIntel(totalfundingofEUR276million),TSMC(total fundingofEUR276million)andSamsung(totalfundingofEUR276million),allofwhichfundingisbeingusedforEUV projects.

Remuneration of the Supervisory Board

TheremunerationofthemembersoftheSupervisoryBoardisnotdependentonourfinancialresults.Nomemberofthe SupervisoryBoardpersonallymaintainsabusinessrelationshipwithASMLotherthanasamemberoftheSupervisory Board.TheRemunerationCommitteeisresponsibleforreviewingand,ifappropriate,recommendingchangesto theremunerationoftheSupervisoryBoard.Anyrecommendedchangestotheremunerationofthemembersofthe SupervisoryBoardmustbesubmittedtotheGeneralMeetingofShareholdersforapproval.Formoredetailsregarding theremunerationoftheSupervisoryBoardwerefertoNote31toourConsolidatedFinancialStatements.

Remuneration of the Board of Management

TheremunerationoftheindividualmembersoftheBoardofManagementisdeterminedbytheSupervisoryBoardbased ontheadviceoftheRemunerationCommitteeoftheSupervisoryBoard.Formoredetailsregardingtheremunerationof theBoardofManagement,werefertotheCorporateGovernanceParagraphandNote31toourConsolidatedFinancial Statements.

Corporate Governance

ASMLcontinuouslymonitorsandassessesapplicableDutch,U.S.,andotherrelevantcorporategovernancecodes, rules,andregulations.ASMLissubjecttotheCode,asASMLisregisteredintheNetherlandsandislistedonNYSE EuronextAmsterdam.FormoredetailswerefertotheCorporateGovernanceParagraph.

Directors' Responsibility Statement

TheDirectors'ResponsibilityStatementisincludedinthisreportonpages57and58.

Corporate Responsibility Report 2013

CorporateResponsibilityStrategy:Ourcustomerswantlithographysystemsthatproducemorechipsfaster,usingless energyandfewernaturalresources,atasimilarcost.Customersalsowantus,astheirsupplier,tooperateaccordingto thehighestenvironmental,socialandgovernancestandards.ASML'scorporateresponsibilitystrategyisbasedonand fullyalignedtoourbusinessstrategy,aimedatmaintainingandfurtherdevelopingourpositionasatechnologyleaderin thesemiconductorindustry.

In2013,weperformedacomprehensiveandstructuredmaterialityassessmentinordertoidentifythenon-financial themesthataremostrelevanttoourstakeholdersandforoursustainedlong-termbusinesssuccess.

Mostofthematerialthemesidentifiedarealreadyincludedinourstrategyandhighonourprioritylist.Weidentified eightmaterialnon-financialthemesvalidatedbytheCRSB:

Innovation;
Knowledge&intellectualpropertymanagement;
Sustainablerelationshipwithoursuppliers;
Sustainablerelationshipwithourcustomers;
Productstewardship;
Talentmanagement;
Training&development;and
Sustainablerelationshipwithouremployees.

Inaddition,werecognizethattherearecertainotherthemesonwhichourstakeholdersexpectustoactasa responsiblecorporatecitizen.Thesethemeshavebeenlabeledasresponsiblebusinessthemes.Theoutcomeofthe materialityassessmentwillbeusedin2014torefocusourcorporateresponsibilitystrategy.

CorporateResponsibilityGovernance:CorporateresponsibilityisdrivenbytheExecutiveVicePresidentOperationsand OrderFulfillmentProcess,FrédéricJ.M.Schneider-Maunoury,whochairstheCRSB,whichsupervisestheexecution ofourcorporateresponsibilitystrategy.TheCRSBismadeupofseniormanagementrepresentativesfromallsectors withinASML.ItisthemissionoftheCRSBtomonitortherealizationofourcorporateresponsibilitytargetsandKPIs, andtoreviewandapproverelatedpolicychangesandimprovementactivities.TheCRSBmetfourtimesin2013. ThemeetingsfocusedonreviewingtheprogressofASML'snon-financialperformanceindicatorswithrespecttoour corporateresponsibilitytargets,KPIsandprojects.

TheCorporateRisk&Assurancedepartmentcoordinatestheday-to-dayimplementationofthecorporateresponsibility strategy,policiesandimprovementactivities,whilebusinessownershavetheoperationalresponsibilitytoimplementthe corporateresponsibilitypolicies.

US GAAP and Dutch Statutory Annual Reports

General

ASMLpreparestwosetsofFinancialStatements,onebasedonUSGAAPandonebasedonDutchlawandIFRS-EU.By meansofregulation1606/2002,theEuropeanCommissionhasstipulatedthatalllistedcompanieswithintheEuropean UnionmemberstatesarerequiredtopreparetheirconsolidatedfinancialstatementsunderIFRS-EUasfromJanuary1, 2005.

TheConsolidatedFinancialStatementsincludedinthisStatutoryAnnualReportarebasedonIFRS-EU.Forinternaland externalreportingpurposes,ASMLfollowsUSGAAP,whichisASML'sprimaryaccountingstandardforsettingfinancial andoperationalperformancetargets.

ASML'sAnnualReportonForm20-F,whichisbasedonUSGAAP,maycontainadditionalinformationnexttoits StatutoryAnnualReport.TheAnnualReportonForm20-F,theUSGAAPquarterlypressreleases(includingsummary USGAAPandIFRSConsolidatedFinancialStatements),theStatutoryInterimReportandtheStatutoryAnnualReport areavailableonASML'swebsiteatwww.asml.com.FortheperiodspresentedinthisStatutoryAnnualReport,themain differencesbetweenIFRSandUSGAAPforASMLrelatetothefollowing:

2012	2013	Year ended December 31
EUR	EUR	(in thousands)
1,146,316	1,015,490	Net income based on US GAAP
164,736	188,972	Developmentexpenditures
(959)	4,029	Share-basedpayments
(587)	(14,647)	Incometaxes
(7,159)	-	Reversalofwrite-downs
1,302,347	1,193,844	Net income based on IFRS

As of December 31 (in thousands)	2013 EUR	2012 EUR
Shareholders equity under U.S. GAAP	6,922,427	4,066,893
Developmentexpenditures	582,614	396,894
Share-basedpayments	27,038	4,061
Incometaxes	12,716	30,354
Reversalofwrite-downs	-	-
Equity under IFRS	7,544,795	4,498,202

Development Expenditures

UnderIFRS,ASMLappliesIAS38,"IntangibleAssets".InaccordancewithIAS38,ASMLcapitalizescertain developmentexpendituresthatareamortizedovertheexpectedusefullifeoftherelatedproductgenerallyranging betweenoneandthreeyears.Amortizationstartswhenthedevelopedproductisreadyforvolumeproduction.

UnderUSGAAP,ASMLappliesASC730,"ResearchandDevelopment".InaccordancewithASC730,ASMLcharges costsrelatingtoR&Dtooperatingexpenseasincurred.

Share-based Payments

UnderIFRS,ASMLappliesIFRS2,"Share-basedPayments".InaccordancewithIFRS2,ASMLrecordsasanexpense thefairvalueofitsshare-basedpaymentswithrespecttostockoptionsandstockgrantedtoitsemployeesafter November7,2002.UnderIFRS,atperiodendadeferredtaxassetiscomputedonthebasisofthetaxdeductionfor theshare-basedpaymentsundertheapplicabletaxlawandisrecognizedtotheextentitisprobablethatfuturetaxable profitwillbeavailableagainstwhichthesedeductibletemporarydifferenceswillbeutilized.Therefore,changesin ASML'ssharepricedoaffectthedeferredtaxassetatperiod-endandresultinadjustmentstothedeferredtaxasset.

UnderUSGAAP,ASMLappliesASC718"Compensation-StockCompensation"whichrequirescompaniestorecognize thecostofemployeeservicesreceivedinexchangeforawardsofequityinstrumentsbaseduponthegrant-datefair valueofthoseinstruments.ASC718'sgeneralprincipleisthatadeferredtaxassetisestablishedaswerecognize compensationcostsforcommercialpurposesforawardsthatareexpectedtoresultinataxdeductionunderexisting taxlaw.UnderUSGAAP,thedeferredtaxrecordedonshare-basedcompensationiscomputedonthebasisofthe expenserecognizedinthefinancialstatements.Therefore,changesinASML'ssharepricedonotaffectthedeferredtax assetrecordedinourFinancialStatements.

Income Taxes

UnderIFRS,ASMLappliesIAS12,"IncomeTaxes"beginningfromJanuary1,2005.InaccordancewithIAS12 unrealizednetincomeresultingfromintercompanytransactionsthatareeliminatedfromthecarryingamountofassets inconsolidationgiverisetoatemporarydifferenceforwhichdeferredtaxesmustberecognizedinconsolidation.The deferredtaxesarecalculatedbasedonthetaxrateapplicableinthepurchaser'staxjurisdiction.

UnderUSGAAP,theeliminationofunrealizednetincomefromintercompanytransactionsthatareeliminatedfrom thecarryingamountofassetsinconsolidationgiverisetoatemporarydifferenceforwhichprepaidtaxesmustbe recognizedinconsolidation.ContrarytoIFRS,theprepaidtaxesunderUSGAAParecalculatedbasedonthetaxrate applicableintheseller'sratherthanthepurchaser'staxjurisdiction.

Reversal of Write-downs

UnderIFRS,ASMLappliesIAS2(revised),"Inventories".InaccordancewithIAS2,reversalofapriorperiodwrite-down asaresultofasubsequentincreaseinvalueofinventoryshouldberecognizedintheperiodinwhichthevalueincrease occurs.

UnderUSGAAP,ASMLappliesASC330"Inventory".InaccordancewithASC330reversalofawrite-downisprohibited asawrite-downcreatesanewcostbasis.

Statutory Interim Report 2013

OnJuly17,2013wepublishedourStatutoryInterimReportforthesix-monthperiodendedJune30,2013.This reportincludesConsolidatedCondensedInterimFinancialStatementspreparedinaccordancewithIAS34,anInterim ManagementBoardReportandaManagingDirectors'Statement.TheStatutoryInterimReportcomprisesregulated informationwithinthemeaningoftheDutchFMSA.

TheBoardofManagement, Veldhoven,February11,2014

Directors' Responsibility Statement

Managing Directors' Statement (EU Transparency Directive)

TheBoardofManagementherebydeclaresthat,tothebestofitsknowledge,theStatutoryFinancialStatements preparedinaccordancewithIFRS-EUandTitle9ofPart2oftheNetherlandsCivilCodeprovideatrueandfairview oftheassets,liabilities,financialpositionandprofitorlossofASMLHoldingN.V.andtheundertakingsincludedinthe consolidationtakenasawholeandthatthemanagementreportincludesafairreviewconcerningthepositionasper thestatementoffinancialpositiondate,thedevelopmentandperformanceofASMLHoldingN.V.andtheundertakings includedintheconsolidationtakenasawhole,togetherwiththeprincipalriskanduncertaintiesthattheyface.

In Control Statement (Dutch Corporate Governance Code)

AstheBoardofManagementofASMLHoldingN.V.,weherebystatethatweareresponsibleforthedesign, implementationandoperationofASML'sinternalriskmanagementandcontrolsystems.Thepurposeofthesesystems istoadequatelyandeffectivelymanagethesignificantriskstowhichASMLisexposed.Suchsystemscanneverprovide absoluteassuranceregardingachievementofcorporateobjectives,norcantheyprovideanabsoluteassurancethat materialerrors,losses,fraudandtheviolationoflawsorregulationswillnotoccur.

Financial Reporting Risks

Tocomplywithourdutiesintheareaofinternalriskmanagementandcontrolsystemswithrespecttofinancialreporting risks,weusevariousmeasuresincludingbutnotlimitedto:

monthlyoperationalreviewmeetingsoftheBoardofManagementwithASML'sseniormanagementonfinancial performanceandrealizationofoperationalobjectivesandresponsestoemergingissues;
semi-annualfinancialplanningmeetingsoftheBoardofManagementwithASML'sseniormanagement;
monthlyandquarterlyfinancialreportingtotheBoardofManagementandASML'sseniormanagement;
lettersofrepresentationthataresignedbyASML'skeyseniormanagementmembersonasemi-annualbasisinwhich theyconfirmthatfortheirresponsibleareabasedupontheirknowledge(i)aneffectivesystemofinternalcontrolsand proceduresismaintainedand(ii)thefinancialreportsfairlypresentthefinancialposition,resultsofoperationsand cashflows;
assessmentsbyASML'sDisclosureCommitteewithrespecttothetimelyreview,disclosure,andevaluationof periodic(financial)reports;
assessmentsbyASML'sDisclosureCommitteewithrespecttointernalcontrolsinlightofamongothersthe requirementsundertheSarbanes-OxleyActof2002andtheDutchCorporateGovernanceCode;
discussionsonmanagementlettersandauditreportsprovidedbyASML'sinternalandexternalauditorswithinour BoardofManagementandSupervisoryBoard;
ASML'sCodeofConductandBusinessPrinciples,ourguidelinesonethicalbusinessconduct;
ASML'sprocedureforreportingissueswithrespecttotheCodeofConduct,includingcomplaintsofafinancial nature,theReportingProcedure;and;
ASML'sAnti-FraudPolicy,whichfacilitatesthedevelopmentofcontrolswhichwillaidinprevention,deterrenceand detectionoffraudagainstASML.

Weacknowledgetheimportanceofinternalcontrolandriskmanagementsystems.Therefore,in2004,ASMLexecuted theSOXProjecttoestablishaframeworktoproperlymanageinternalcontrolsoverfinancialreporting,whichisrequired persection404oftheSarbanes-OxleyActof2002("SOX404").TheresultsofASML'sassessmentoftheeffectiveness ofthisframework,whichisbasedontheCommitteeofSponsoringOrganizationsoftheTreadwayCommission("COSO") model(1992),aswellassignificantchangesandimprovements,areregularlyreportedtoanddiscussedwithASML's AuditCommitteeandexternalauditors.TheAuditCommitteereportsaboutthesesubjectstotheSupervisoryBoardon aregularbasis.Inaddition,onceayear,theBoardofManagementdiscussestheimplementationofthisinternalcontrol framework,aswellassignificantchangesandmajorimprovementsininternalcontrols,withtheAuditCommitteeand thefullSupervisoryBoard.

Summary

Basedontheoutcomeoftheabove-mentionedmeasuresandtothebestofitsknowledgeandbelief,theBoardof Managementstatesthat:

1. theabove-mentionedmeasuresprovideareasonablelevelofassurancethatASML'sFinancialStatementsasof andfortheyearendedDecember31,2013fairlypresentinallmaterialrespectsthefinancialcondition,resultsof operationsandcashflowsofASMLandthatASML'sFinancialStatementsasofandfortheyearendedDecember 31,2013donotcontainanymaterialinaccuracy;
1. theinternalriskmanagementandcontrolsystemsprovideareasonableassurancethatthefinancialreportingdoes notcontainanyerrorsofmaterialimportanceandhaveworkedadequatelyin2013;and
1. therearenoindicationsthatASML'sinternalcontrolsoverfinancialreportingwillnotoperateeffectivelyin2014.

ASML'sBoardofManagementiscurrentlynotawareofanysignificantchangeinASML'sinternalcontroloverfinancial reportingthatoccurredduring2013thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,ASML's effectivenessofinternalcontroloverfinancialreporting.

Operational/Strategic Risks and Legal and Regulatory Risks

Tocomplywithourdutiesintheareaofinternalriskmanagementandcontrolsystemswithrespecttooperational/ strategicrisksandlegalandregulatoryrisks,weusevariousmeasuresamongwhich:

strategicevaluationsofASML'sbusinessbytheBoardofManagementinconsultationwiththeSupervisoryBoard;
semi-annualseniormanagementmeetings,whichareconductedtoassessASML'scorporateinitiativeswhichare launchedinordertoexecuteASML'sstrategy;
monthlyoperationalreviewmeetingsoftheBoardofManagementwithASML'sseniormanagementonfinancial performanceandrealizationofoperationalobjectivesandresponsestoemergingissues;
semi-annualfinancialplanningmeetingsoftheBoardofManagementwithASML'sseniormanagement;
monthly(internal)andquarterly(public)financialreporting;
lettersofrepresentationthataresignedbyASML'skeyseniormanagementmembersonasemi-annualbasisin whichtheyconfirmtheirresponsibilityforassessingbusinessrisksandensuringappropriateriskmitigationfortheir responsibleareabasedupontheirknowledge;
quarterlyreviewofkeyoperationalriskareasbytheCRSB;
ASML'sCodeofConductandBusinessPrinciples,ourguidelinesonethicalbusinessconduct;
ASML'sprocedureforreportingissueswithrespecttotheCodeofConduct,includingcomplaintsofafinancial nature,theReportingProcedure;and;
ASML'sAnti-FraudPolicy,whichfacilitatesthedevelopmentofcontrolswhichwillaidinprevention,deterrenceand detectionoffraudagainstASML.

TheestablishmentofASML'sinternalcontrolandriskmanagementsystemsisbasedontheidentificationofexternal andinternalriskfactorsthatcouldinfluencetheoperationalandfinancialobjectivesofASMLandcontainsasystem ofmonitoring,reportingandoperationalreviews.Allmaterialriskmanagementactivitieshavebeendiscussedwith theAuditCommitteeandtheSupervisoryBoard.Formoreinformationonourriskmanagementactivitiesandour internalcontrolandriskmanagementsystems,werefertoInternalRiskManagementandControlSystems,External FactorsincludedinASML'sCorporateGovernanceParagraph.ForasummaryofASML'sRiskFactors,werefertoour ManagementBoardReportinthisStatutoryAnnualReport.

TheBoardofManagement,

PeterT.F.M.Wennink,President,CEOandChairmanoftheBoardofManagement MartinA.vandenBrink,President,CTOandViceChairmanoftheBoardofManagement FritsJ.vanHout,ExecutiveVicePresident,ChiefProgramOfficer FrédéricJ.M.Schneider-Maunoury,ExecutiveVicePresident,ChiefOperationsOfficer

Veldhoven,February11,2014

Consolidated Financial Statements

ConsolidatedStatementofProfitorLoss
ConsolidatedStatementofComprehensiveIncome
ConsolidatedStatementofFinancialPosition
ConsolidatedStatementofChangesinEquity
ConsolidatedStatementofCashFlows
NotestotheConsolidatedFinancialStatements

	Year ended December 31	2013	2012
Notes	(in thousands, except per share data)	EUR	EUR

29	Netsystemsales	3,993,129	3,801,632
	Netserviceandfieldoptionsales	1,252,197	929,923
29	Total net sales	5,245,326	4,731,555
	Costofsystemsales	(2,324,903)	(2,308,315)

	Costofserviceandfieldoptionsales	(834,443)	(527,377)
30	Total cost of sales	(3,159,346)	(2,835,692)
	Gross profit	2,085,980	1,895,863
36	Otherincome	64,456	-
30,32	Researchanddevelopmentcosts	(563,965)	(298,052)
30	Selling,generalandadministrativecosts	(311,335)	(256,479)

	Operating income	1,275,136	1,341,332
33	Financeincome	9,187	16,585
33	Financecosts	(28,010)	(20,008)
	Income before income taxes	1,256,313	1,337,909
27	Provisionforincometaxes	(62,469)	(35,562)

	Net income	1,193,844	1,302,347
8	Basicnetincomeperordinaryshare	2.78	3.07
8	Dilutednetincomeperordinaryshare1	2.75	3.05
	Numberofordinarysharesusedincomputingpershareamounts(inthousands):
8	Basic	429,770	424,096
8	Diluted1	433,446	426,986

1 Thecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderourstockoptionplansandtheissuanceof sharesunderourshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuancewouldbeanti-dilutive.

Consolidated Statement of Comprehensive Income

	Year ended December 31	2013	2012
Notes	(in thousands)	EUR	EUR
	Net income	1,193,844	1,302,347
	Other comprehensive income:
	Foreign currency translation, net of taxes:
6,19	Gain(loss)onthehedgeofanetinvestment	-	-
6,19	Gain(loss)ontranslationofforeignoperations	(122,000)	5,927
	Financial instruments, net of taxes:
6,19	Gain(loss)onderivativefinancialinstruments	(5,370)	214
6,19	Transferstonetincome	(2,276)	(7,761)
	Other comprehensive income for the period, net of taxes1	(129,646)	(1,620)
	Total comprehensive income for the period, net of taxes	1,064,198	1,300,727
	AttributabletoEquityholders	1,064,198	1,300,727

1 AllitemsinaccumulatedothercomprehensiveincomeasatDecember31,2013,comprisingofthehedgingreserveofEUR12.2million(2012:EUR 4.6million)andthecurrencytranslationreserveofEUR214.0million(2012:EUR96.5million),willbereclassifiedsubsequentlytoprofitorlosswhen specificconditionsaremet.

Consolidated Statement of Financial Position

(Beforeappropriationofnetincome)

	As of December 31	2013	2012
Notes	(in thousands)	EUR	EUR
	Assets
9	Property,plantandequipment	1,217,840	1,029,923
10	Goodwill	2,111,296	158,067
11	Otherintangibleassets	1,375,572	460,928
27	Deferredtaxassets	302,724	188,638
16	Financereceivables	46,017	38,621
13	Derivativefinancialinstruments	30,777	101,651
14	Otherassets	263,353	206,900
	Total non-current assets	5,347,579	2,184,728

15	Inventories	2,393,022	1,856,970
27	Currenttaxassets	32,333	57,116
13	Derivativefinancialinstruments	40,843	50,097
16	Financereceivables	250,472	265,167
17	Accountsreceivable	878,321	605,288
14	Otherassets	250,217	166,088
18	Short-terminvestments	679,884	930,005
18	Cashandcashequivalents	2,330,694	1,767,596
	Total current assets	6,855,786	5,698,327
	Total assets	12,203,365	7,883,055
	Equity and liabilities
19	Equity	7,544,795	4,498,202
20	Long-termdebt	1,065,756	752,892
13	Derivativefinancialinstruments	2,608	4,032
27	Deferredandothertaxliabilities	439,885	132,834
22	Provisions	4,620	7,974
23	Accruedandotherliabilities	280,534	401,109
	Total non-current liabilities	1,793,403	1,298,841
22	Provisions	2,227	2,280
13	Derivativefinancialinstruments	9,044	6,861
20	Currentportionoflong-termdebt	4,385	3,610
27	Currenttaxliabilities	15,803	10,791
23	Accruedandotherliabilities	2,207,838	1,873,509
	Accountspayable	625,870	188,961
	Total current liabilities	2,865,167	2,086,012
	Total equity and liabilities	12,203,365	7,883,055

Consolidated Statement of Changes in Equity

(Beforeappropriationofnetincome)

		Issued and Outstanding Shares
		Number1	Amount	Share Premium	Treasury Shares at Cost	Retained Earnings	Other Reserves2	Net Income	Total
Notes	(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
	Balance at January 1, 2012	413,669	38,816	920,478	(417,837)	1,525,238	159,039	1,494,071	3,719,805
	Appropriation of net income	-	-	-	-	1,494,071		- (1,494,071)	-
	Components of statement of comprehensive income
	Netincome	-	-	-	-	-	-	1,302,347	1,302,347
6,19	Foreigncurrencytranslation	-	-	-	-	-	5,927	-	5,927
6,19	Lossonfinancialinstruments,netof taxes	-	-	-	-	-	(7,547)	-	(7,547)
	Total comprehensive income	-	-	-	-	-	(1,620)	1,302,347	1,300,727
	CCIP:
19,36	Issuanceofshares	96,566	8,691	3,968,677	-	-	-	-	3,977,368
19,36	Fairvaluedifferences3	-	-	(123,416)	-	-	-	-	(123,416)
19,36	Capitalrepayment4	(93,411)		(8,691) (3,845,261)	125,628	-	-	-	(3,728,324)
19	Purchases of treasury shares	(13,478)	-	-	(535,373)	-	-	-	(535,373)
19	Cancellation of treasury shares	-	(1,030)	-	294,752	(293,722)	-	-	-
24,30,31	Share-based payments	-	-	20,596	-	-	-	-	20,596
24,30	Issuance of shares	3,819	-	(8,106)	66,982	(3,165)	-	-	55,711
19	Dividend paid	-	-	-	-	(188,892)	-	-	(188,892)
19	Development expenditures	-	-	-	-	(192,482)	192,482	-	-
	Balance at December 31, 2012	407,165	37,786	932,968	(465,848)	2,341,048	349,901	1,302,347	4,498,202
	Appropriation of net income Components of statement of comprehensive income	-	-	-	-	1,302,347		- (1,302,347)	-
	Netincome	-	-	-	-	-	-	1,193,844	1,193,844
6,19	Foreigncurrencytranslation	-	-	-	-	-	(122,000)	-	(122,000)
6,19	Lossonfinancialinstruments,netof taxes	-	-	-	-	-	(7,646)	-	(7,646)
	Total comprehensive income	-	-	-	-	-	(129,646)	1,193,844	1,064,198
	CCIP:
19,36	Fairvaluedifferences5	-	-	20,956	-	-	-	-	20,956
19	Purchases of treasury shares	(4,614)	-	-	(300,000)	-	-	-	(300,000)
19	Cancellation of treasury shares	-	(854)	-	349,261	(348,407)	-	-	-
24,30,31	Share-based payments6	-	-	116,821	-	-	-	-	116,821
24,30	Issuance of shares7	38,301	3,282	2,312,360	50,805	(5,744)	-	-	2,360,703
19	Dividend paid	-	-	-	-	(216,085)	-	-	(216,085)
19	Development expenditures	-	-	-	-	(231,523)	231,523	-	-
	Balance at December 31, 2013	440,852	40,214	3,383,105	(365,782)	2,841,636	451,778	1,193,844	7,544,795

1 AsofDecember31,2013,thenumberofissuedshareswas446,822,452.Thisincludesthenumberofissuedandoutstandingsharesof440,852,334 andthenumberoftreasurysharesof5,970,118.AsofDecember31,2012,thenumberofissuedshareswas419,852,467.Thisincludesthenumber ofissuedandoutstandingsharesof407,165,221andthenumberoftreasurysharesof12,687,246.

2 Otherreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.SeeNote 19.

3 ThedifferencebetweenthefairvalueofthesharesandthesubscriptionpriceofthesharesissuedtotheparticipatingcustomersintheCCIP. 4 In2012,aspartofthecapitalrepayment,EUR3,728.3millionofEquitywasreturnedtoourshareholders(excludingParticipatingCustomersinthe CCIP)andthenumberofshareswasreducedby23percent.SeeNote19.

5 EUR21.0millionisrecognizedtoincreaseequitytothefairvalueofthesharesissuedtotheParticipatingCustomersintheCCIP.Theportionofthe NREfundingallocabletothesharesisrecognizedovertheNREFundingAgreementsperiod(2013-2017).

6 Share-basedpaymentsincludeanamountofEUR66.1millioninrelationtothefairvaluecompensationofunvestedequityawardsexchangedaspart ofacquisitionofCymer.

7 Issuanceofsharesincludes36,464,576ordinarysharesissuedinrelationtotheacquisitionofCymerforatotalfairvalueofEUR2,346.7million. ThedifferenceofEUR1.0millionwiththefairvalueofsharesasdisclosedinNote4isexplainedby14,533sharesstilltobeissuedtoformerCymer shareholders.

Notes	Year ended December 31 (in thousands)	2013 EUR	2012 EUR
	Cash Flows from Operating Activities
	Netincome	1,193,844	1,302,347
	Adjustmentstoreconcilenetincometo
	netcashflowsfromoperatingactivities:
9,11	Depreciationandamortization	320,924	285,886
9,11	Impairment	13,057	3,234
9	Lossondisposalofproperty,plantandequipment1	2,823	2,272
24,31	Share-basedpayments	47,422	18,714
17	Allowancefordoubtfulreceivables	1,062	458
15	Allowanceforobsoleteinventory	164,852	118,678
27	Deferredincometaxes	26,018	(41,695)
	Changesinassetsandliabilities:
17	Accountsreceivable	(192,149)	246,982
16	Financereceivables	9,277	(225,103)
15	Inventories1	(521,110)	(334,280)
14	Otherassets	(53,141)	(8,627)
22,23	Accruedandotherliabilities	(6,747)	(109,785)
	Accountspayable	321,486	(225,083)
27	Incometaxespayable Cash generated from operations	68,795 1,396,413	81,177 1,115,175

	Interestreceived	37,355	31,453
	Interestpaid	(50,535)	(37,906)
	Incometaxespaid Net cash provided by operating activities	(2,278) 1,380,955	(109,504) 999,218

9	Cash Flows from Investing Activities Purchaseofproperty,plantandequipment1	(210,804)	(171,878)
11	Purchaseofintangibleassets	(327,672)	(301,282)
5,18	Purchaseofavailableforsalesecurities	(904,856)	(1,379,997)
5,18	Maturityofavailableforsalesecurities	1,195,031	449,992
	Acquisitionofsubsidiaries(netofcashacquired)	(443,712) 2	(10,292)
	Net cash used in investing activities	(692,013)	(1,413,457)
	Cash Flows from Financing Activities
19	Dividendpaid	(216,085)	(188,892)
19	Purchaseofshares	(300,000)	(535,373)
24,31	Netproceedsfromissuanceofshares	31,822	3,907,666 3
	Netproceedsfromissuanceofnotes	740,445 4	-
	Repurchasesofnotes	(368,303) 5	-
19	CapitalRepayment	-	(3,728,324) 6
20	Repaymentofdebt	(4,100)	(2,776)
	Net cash used in financing activities	(116,221)	(547,699)
	Netcashflows	572,721	(961,938)
	Effectofchangesinexchangeratesoncash	(9,623)	(2,248)
	Net increase (decrease) in cash and cash equivalents	563,098	(964,186)
18	Cashandcashequivalentsatbeginningoftheyear	1,767,596	2,731,782

18	Cash and cash equivalents at end of the year	2,330,694	1,767,596

1 AnamountofEUR115.9million(2012:EUR204.8million,2011:EUR300.5million)oftheadditionsinproperty,plantandequipmentrelatestononcashtransfersfrominventory,anamountofEUR12.5million(2012:EUR9.6million,2011:EUR17.7million)relatestoothernon-cashmovements (mainlyinvestmentsnotyetpaidandinceptionsoffinanceleasearrangements)andanamountofEUR48.2million(2012:EUR222.9million,2011: EUR145.3million)ofthedisposalofproperty,plantandequipmentrelatestonon-cashtransferstoinventory.Sincethetransfersbetweeninventory andproperty,plantandequipmentarenon-cashevents,thesearenotreflectedintheConsolidatedStatementofCashFlows.Forfurtherdetailssee Note9.

2 InadditiontothecashpaidinrelationtotheacquisitionofCymer,weissued36,464,576sharesforanamountofEUR2,346.7million(non-cash event)aspartoftheconsiderationpaid.

3 ThenetproceedsfromissuanceofsharesincludesanamountofEUR3,853.9millionrelatedtotheshareissuancesinconnectiontotheCCIP.

4 NetproceedsfromissuanceofnotesrelatetothetotalcashproceedsofEUR740.4million(netofincurredtransactioncosts)fromtheofferingofour EUR750million3.375percentseniornotesdue2023.

5 RepurchaseofnotesrelatestothenetcashoutflowsofEUR368.3millionforthepartialrepurchaseofourEUR600million5.75percentseniornotes due2017includingthepartialunwindingoftherelatedinterestrateswaps.

6 ThedifferenceofEUR125.6millionbetweenthecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR 3,853.9millionrelatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuybackinNovember2012.

Notes to the Consolidated Financial Statements

1. General Information

ASML,withitscorporateheadquartersinVeldhoven,theNetherlands,isengagedinthedevelopment,production, marketing,sellingandservicingofadvancedsemiconductorequipmentsystems,exclusivelyconsistingoflithography systems.ASML'sprincipaloperationsareintheNetherlands,theUnitedStatesofAmericaandAsia.

OursharesarelistedfortradingintheformofregisteredsharesonNASDAQandonNYSEEuronextAmsterdam.The principaltradingmarketofourordinarysharesisNYSEEuronextAmsterdam.

OnMay30,2013weacquired100percentoftheissuedsharecapitalofCymer.Comparativefinancialinformation presentedintheConsolidatedFinancialStatementsdoesnotincludeCymer,unlessstatedotherwise.

OurFinancialStatementswereauthorizedforissuebytheBoardofManagementonFebruary11,2014andwillbefiled attheTradeRegisteroftheChamberofCommerceinEindhoven,theNetherlandswithineightdaysafteradoptionby theGeneralMeetingofShareholders,scheduledonApril23,2014.

2. Adoption of New and Revised International Financial Reporting Standards

Standards and Interpretations Effective in 2013

ASML'simplementationofnewStandardsandInterpretationswhichareeffectiveasofJanuary1,2013andhadan effectonourConsolidatedFinancialStatements,aresummarizedbelow:

AnnualImprovementstoIFRSs2009-2011CycleissuedinMay2012(effectiveforannualperiodsbeginningonor afterJanuary1,2013).AmendmentstoIFRSsamongstothersincludeamendmentstoIAS1"PresentationofFinancial Statements".ThisAmendmentrequirestogrouptheitemsinothercomprehensiveincomeonthebasisofwhetherthey arepotentiallyabletosubsequentlyreclassifiedtoprofitandloss(reclassificationadjustments).Thepresentationofour ConsolidatedStatementofComprehensiveIncomehasbeenadjustedtocomplywiththisAmendment.

At the Date of Authorization of These Consolidated Financial Statements, the Following Standards and Interpretations Have Been Issued However Are Not Yet Effective and/or Have Not Yet Been Adopted by the EU and Have Not Yet Been Adopted by Us

IFRS9"FinancialInstruments"(effectiveforannualperiodsbeginningonorafterJanuary1,2017¹ ),wasissuedin November2009andsubsequentlyamendedinDecember16,2011andNovember19,2013.TheStandardissubject toendorsementbytheEU.IFRS9addressestheclassificationandmeasurementoffinancialassetsandfinancial liabilities.IFRS9enhancestheabilityofinvestorsandotherusersoffinancialinformationtounderstandtheaccounting offinancialassetsandreducescomplexity.Furthermore,IFRS9addressestheaccountingforchangesinthefairvalue offinancialliabilities(designatedatfairvaluethroughprofitorloss)attributabletochangesinthecreditriskofthat liability.WearecurrentlyintheprocessofdeterminingtheimpactofimplementingthisStandardonourConsolidated FinancialStatements.

IAS32Amendments"OffsettingFinancialAssetsandFinancialLiabilities"(effectiveforannualperiodsbeginningonor afterJanuary1,2014).TheamendmentstoIAS32clarifyexistingapplicationissuesrelatingtotheoffsetoffinancial assetsandfinancialliabilitiesrequirements.Specificallytheamendmentsclarifythemeaningof'currencyhasalegally enforceablerightofset-off'and'simultaneousrealizationandsettlement'.Wedonotanticipateanymaterialimpacton ourConsolidatedFinancialStatementsuponimplementation.

WebelievethattheeffectofallotherIFRSsnotyetadoptedisnotexpectedtobematerial.

¹⁾ theIASBtentativelydecidedthatthemandatoryeffectivedateofIFRS9willbenoearlierthanannualperiodsbeginningonorafter1January2017.

3. Summary of Significant Accounting Policies

Basis of Preparation

TheaccompanyingConsolidatedFinancialStatementsarestatedinthousandsofEURunlessotherwiseindicated.These ConsolidatedFinancialStatements,preparedforstatutorypurposes,havebeenpreparedinaccordancewithIFRS-EU.Forinternalandexternalreportingpurposes,weapplyUSGAAP.USGAAPisourprimaryaccountingstandardfor settingfinancialandoperationalperformancetargets.

TheConsolidatedFinancialStatementshavebeenpreparedonhistoricalcostconventionunlessstatedotherwise.The principalaccountingpoliciesadoptedaresetoutbelow.

Use of Estimates

ThepreparationofourConsolidatedFinancialStatementsinconformitywithIFRSrequiresmanagementtomake estimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthedisclosureofcontingent assetsandliabilitiesonthedatesoftheConsolidatedStatementofFinancialPositionandthereportedamountsofnet salesandcostsduringthereportedperiods.Actualresultscoulddifferfromthoseestimates.

Basis of Consolidation

TheConsolidatedFinancialStatementsincludetheFinancialStatementsofASMLHoldingN.V.andallofitssubsidiaries andtheSPEofwhichASMListheprimarybeneficiary.Allintercompanyprofits,balancesandtransactionshavebeen eliminatedintheconsolidation.

Subsidiaries

SubsidiariesareallentitiesoverwhichASMLhasthepowertogovernfinancialandoperatingpoliciesgenerally accompanyingashareholdingofmorethan50percentofthevotingrights.Asfromthedatethatthesecriteriaaremet, thefinancialdataoftherelevantcompanyareincludedintheconsolidation.

BusinessCombinations

Acquisitionsofsubsidiariesareincludedonthebasisoftheacquisitionmethod.Thecostofacquisitionismeasured basedontheconsiderationtransferredatfairvalue,thefairvalueofidentifiableassetsdistributedandthefairvalueof liabilitiesincurredorassumedattheacquisitiondate(i.e.thedateatwhichweobtaincontrol).Theexcessofthecosts ofanacquiredsubsidiaryoverthenetoftheamountsassignedtoidentifiableassetsacquiredandliabilitiesincurredor assumed,iscapitalizedasgoodwill.Acquisition-relatedcostsareexpensedwhenincurredintheperiodtheyariseorthe serviceisreceived.

SpecialPurposeEntities

WhenwehaveaninterestinaSPE,weshallassesswhetherwehavecontroloverthatSPEand,thus,should consolidatetheSPE.

Foreign Currency Translation

TheindividualfinancialstatementsofeachgroupentityarepresentedintheirFunctionalCurrency.Forthepurposeof theConsolidatedFinancialStatements,theresultsandfinancialpositionofeachentityareexpressedineuros,whichis ASML'sFunctionalCurrency,andthepresentationcurrencyfortheConsolidatedFinancialStatements.

Inpreparingthefinancialstatementsoftheindividualentities,transactionsinForeignCurrenciesarerecordedatthe ratesofexchangeprevailingthedateofthetransactions.AteachConsolidatedStatementofFinancialPositiondate, monetaryitemsdenominatedinForeignCurrenciesaretranslatedattheratesprevailingtheConsolidatedStatement ofFinancialPositiondate.Non-monetaryitemscarriedatfairvaluethataredenominatedinForeignCurrenciesare translatedattheratesprevailingonthedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasured intermsofhistoricalcostinaForeignCurrencyarenotretranslated.

Exchangeratedifferencesarisingonthesettlementofmonetaryitems,andonthetranslationofmonetaryitems,are recognizedintheConsolidatedStatementofProfitorLossintheperiodinwhichtheyarise.Exchangeratedifferences arisingonthetranslationofnon-monetaryitemscarriedatfairvaluearerecognizedintheConsolidatedStatementof ProfitorLossfortheperiodexceptfordifferencesarisingonthetranslationofnon-monetaryitemsinrespectofwhich gainsandlossesarerecognizeddirectlyinequity.Forsuchnon-monetaryitems,anyexchangeratecomponentofthat gainorlossisalsorecognizeddirectlyinequity.

Inordertohedgeitsexposuretocertainforeignexchangeraterisks,weenterintoforwardcontractsandcurrency options;seebelowfordetailsofouraccountingpoliciesinrespectofsuchderivativefinancialinstruments.

ForthepurposeofpresentingConsolidatedFinancialStatements,theassetsandliabilitiesofourforeignsubsidiaries (includingcomparatives)areexpressedineurosusingexchangeratesprevailingontheConsolidatedStatementof FinancialPositiondate.Incomeandcostitems(includingcomparatives)aretranslatedattheaverageexchangerates fortheperiod,unlessexchangeratesfluctuatedsignificantlyduringthatperiod,inwhichcasetheexchangeratesat thedatesofthetransactionsareused.Exchangeratedifferencesarisingareclassifiedasequityandtransferredtoour currencytranslationreserve.SuchtranslationdifferencesarerecognizedintheConsolidatedStatementofProfitorLoss intheperiodinwhichtheforeignoperationisdisposed.Goodwillandfairvalueadjustmentsarisingontheacquisitionof aforeignsubsidiaryaretreatedasassetsandliabilitiesofforeignsubsidiariesandtranslatedatclosingrate.

Property, Plant and Equipment

Property,plantandequipmentarestatedatcost,lessaccumulateddepreciationandanyaccumulatedimpairment losses.CostsofassetsmanufacturedbyASMLincludedirectmanufacturingcosts,productionoverheadandinterest costsincurredforqualifyingassetsduringtheconstructionperiod.Depreciationiscalculatedusingthestraight-line methodbasedontheestimatedusefullivesoftherelatedassets.Incaseofleaseholdimprovements,theestimated usefullivesoftherelatedassetsdonotexceedtheremainingtermofthecorrespondinglease.Thefollowingtable presentstheestimatedusefullivesofASML'sproperty,plantandequipment:

Category	Estimated useful life
Buildingsandconstructions	5-45years
Machineryandequipment	2-10years
Leaseholdimprovements	5-10years
Furniture,fixturesandotherequipment	3-5years

Landisnotdepreciated.

Certaininternalandexternalcostsassociatedwiththepurchaseand/ordevelopmentofinternallyusedsoftwareare capitalizedwhenboththepreliminaryprojectstageiscompletedandmanagementhasauthorizedfurtherfundingfor theproject,whichithasdeemedprobabletobecompletedandtobeusablefortheintendedfunction.Thesecostsare amortizedonastraight-linebasisovertheperiodofrelatedbenefit,whichrangesprimarilyfromthreetofiveyears.

Theestimatedusefullivesanddepreciationmethodarereviewedateachyear-end,withtheeffectofanychangesin estimatesaccountedforonaprospectivebasis.

Thegainorlossarisingonthedisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthe differencebetweenthesalesproceedsandthecarryingamountoftheassetandisrecognizedintheConsolidated StatementofProfitorLoss.

Intangible Assets

Goodwill

Goodwillrepresentstheexcessofthecostsofanacquisitionoverthefairvalueoftheamountsassignedtoassets acquiredandliabilitiesincurredorassumedoftheacquiredsubsidiaryatthedateofacquisition.Goodwillonacquisition ofsubsidiariesisallocatedtoCGUsforthepurposeofimpairmenttesting.TheallocationismadetothoseCGUsthat areexpectedtobenefitfromthebusinesscombinationinwhichthegoodwillarose.Goodwillistestedforimpairment annuallyattheendofthethirdquarterandwhenevereventsorchangesincircumstancesindicatethatthecarrying amountofthegoodwillmaynotberecoverable.IftheRecoverableAmountoftheCGUislessthanthecarryingamount oftheunit,theimpairmentlossisallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitand thentotheotherassetsoftheunitpro-rataonthebasisofthecarryingamountofeachassetintheunit.Animpairment lossrecognizedforgoodwillisnotreversedinasubsequentperiod.Goodwillisstatedatcostlessaccumulated impairmentlosses.

Ondisposalofasubsidiary,theattributableamountofgoodwillisincludedinthedeterminationoftheprofitorlosson disposal.

OtherIntangibleAssets

Otherintangibleassetsincludeinternally-generatedintangibleassets,brands,intellectualproperty,developed technology,customerrelationships,in-processR&Dandotherintangibleassets.

Internally-generatedIntangibleAssets–DevelopmentExpenditures

Expendituresonresearchactivitiesarerecognizedascostsintheperiodinwhichtheyincur.IFRSrequirescapitalization ofdevelopmentexpendituresprovidedif,andonlyif,certaincriteriacanbedemonstrated.

Aninternally-generatedintangibleassetarisingfromourdevelopmentisrecognizedonlyifwecandemonstrateallofthe followingconditions:

•Thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;
•Theintentiontocompletetheintangibleassetanduseorsellit;
•Theabilitytouseorselltheintangibleasset;
•Theprobabilitythattheassetcreatedwillgeneratefutureeconomicbenefits;
•Theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthe intangibleasset;and
•Theabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringitsdevelopment.

Forcertaindevelopmentprograms,itwasnotpossibletoseparatedevelopmentactivitiesfromresearchactivities (approximatelyEUR25.1millionandEUR19.6millionfor2013and2012,respectively).Consequently,wearenotable toreliablydeterminetheamountofdevelopmentexpendituresincurredandthereforenoamountswerecapitalizedfor theseprograms.

Internally-generatedintangibleassetsareamortizedonastraight-linebasisovertheirestimatedusefullives,ranging fromonetofiveyears.Wherenointernally-generatedintangibleassetcanberecognized,developmentexpenditureis chargedtotheConsolidatedStatementofProfitorLossintheperiodinwhichitisincurred.

Theestimatedusefullivesandamortizationmethodarereviewedateachyear-end,withtheeffectofanychangesin estimateaccountedforonaprospectivebasis.

Brands,IntellectualProperty,DevelopedTechnology,CustomerRelationshipsandOtherIntangibleAssets

Brands,intellectualproperty,developedtechnology,customerrelationshipsandotherintangibleassetsarestatedat costlessaccumulatedamortizationandanyaccumulatedimpairmentlosses.Amortizationischargedonastraight-line basisovertheirestimatedusefullives.Theestimatedusefullifeandamortizationmethodarereviewedattheendof eachannualreportingperiod,withtheeffectofanychangesinestimatebeingaccountedforonaprospectivebasis.

In-processResearchandDevelopment

In-processR&Drelatetothefairvalueofthetechnologythatwasindevelopmentatthetimeofanacquisition.InprocessR&Dareconsideredtobenotyetreadyforuseandarethereforenotamortized.Atinceptionofamortization, theamountofin-processR&Dwillbereclassifiedtodevelopedtechnology.

ThefollowingtablepresentstheestimatedusefullivesofASML'sotherintangibleassets:

Category	Estimated useful life
Brands	20years
Developmentexpenditures	1-5years
Intellectualproperty	3-10years
Developedtechnology	6-15years
Customerrelationships	8-18years
Other	2-6years

Impairment of Tangible and Intangible Assets Excluding Goodwill

AteachConsolidatedStatementofFinancialPositiondate,wereviewthecarryingamountsofourtangibleand intangibleassets(otherthangoodwill)todeterminewhetherthereisanyindicationthatthoseassetshavesufferedan impairmentloss.Ifanysuchindicationexists,theRecoverableAmountoftheassetisestimatedinordertodetermine theextentoftheimpairmentloss(ifany).WhereitisnotpossibletoestimatetheRecoverableAmountofanindividual asset,weestimatetheRecoverableAmountoftheCGUtowhichtheassetbelongs.Whereareasonableandconsistent basisofallocationcanbeidentified,corporateassetsarealsoallocatedtoindividualCGU's,orotherwisetheyare allocatedtothesmallestgroupofCGU'sforwhichareasonableandconsistentallocationbasiscanbeidentified.

Otherintangibleassetsnotyetavailableforusearetestedforimpairmentannually,andwheneverthereisanindication thattheassetmaybeimpaired.

IftheRecoverableAmountofanasset(orCGU)isestimatedtobelessthanitscarryingamount,thecarryingamount oftheasset(orCGU)isreducedtoitsRecoverableAmount.Animpairmentlossisrecognizedimmediatelyinthe ConsolidatedStatementofProfitorLoss,unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasethe impairmentlossistreatedasarevaluationdecrease.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(orCGU)isincreasedtotherevised estimateofitsRecoverableAmount,butsothattheincreasedcarryingamountdoesnotexceedthecarryingamount thatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognizedfortheasset(orCGU)inprioryears.A reversalofanimpairmentlossisrecognizedimmediatelyintheConsolidatedStatementofProfitorLoss,unless therelevantassetiscarriedatarevaluedamount,inwhichcasethereversaloftheimpairmentlossistreatedasa revaluationincrease.

Financial Assets

Financialassetsareclassifiedas"Financialassetsatfairvaluethroughprofitorloss",AFSor"Loansandreceivables". Theclassificationdependsonthenatureandpurposeofthefinancialassetsandisdeterminedatthetimeofinitial recognition.

FinancialAssetsatFairValueThroughProfitorLoss

Financialassetsareclassifiedatfairvaluethroughprofitorlosswhenthefinancialassetisdesignatedatfairvalue throughprofitorloss.Assetsinthiscategoryarecategorizedascurrentassets.

Available-forSaleFinancialAssets

AFSfinancialassetsarenon-derivativesthatareeitherdesignatedasAFSorarenotclassifiedas(a)loansand receivables,(b)held-to-maturityinvestmentsor(c)financialassetsatfairvaluethroughprofitandloss.OurAFSfinancial assetscompriseshort-terminvestments,whichconsistofDutchTreasuryCertificatesanddepositswiththeDutch government.Ourshort-terminvestmentsarestatedatfairvalue.Fairvalueofourshort-terminvestmentsisdetermined inthemannerdescribedinNote5.

LoansandReceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinan activemarket.Theyareincludedincurrentassets,exceptformaturitiesgreaterthan12monthsaftertheConsolidated StatementofFinancialPositiondate.Theseareclassifiedasnon-currentassets.Ourloansandreceivablescomprise ofaccountsreceivable,financereceivables,cashandcashequivalents(excludinginvestmentsinmoneymarketfunds, whichareclassifiedasfinancialassetsatfairvaluethroughprofitandloss)andothernon-currentandcurrentassetsin theConsolidatedStatementofFinancialPosition.

Loansandreceivablesareinitiallymeasuredatfairvalueandsubsequentlyatamortizedcostusingtheeffectiveinterest ratemethod.

WeassessateachConsolidatedStatementofFinancialPositiondatewhetherthereisobjectiveevidencethatafinancial assetoragroupoffinancialassetsisimpaired.

Impairment of Financial Assets

Financialassets,otherthanthoseatfairvaluethroughprofitorloss,areassessedforindicatorsofimpairmentateach ConsolidatedStatementofFinancialPositiondate.Financialassetsareimpairedwherethereisobjectiveevidencethat, asaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialasset,theestimatedfuture cashflowsoftheinvestmenthavebeenimpacted.

Financial Liabilities and Equity Instruments Issued by ASML

FinancialliabilitiesandequityinstrumentsissuedbyASMLareclassifiedaccordingtothesubstanceofthecontractual arrangementsenteredintoandthedefinitionsofafinancialliabilityandanequityinstrument.

Financialliabilitiesareeitherclassifiedasfinancialliabilitiesatfairvaluethroughprofitorlossorotherfinancial liabilities.AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofASMLafterdeducting allofitsliabilities.EquityinstrumentsissuedbyASMLarerecordedatfairvalue,netofdirectissuecosts.

Financialliabilitiesatfairvaluethroughprofitorlossarestatedatfairvaluewithanyresultantgainorlossrecognizedin theConsolidatedStatementofProfitorLoss.

Otherfinancialliabilities(includingloans,borrowingsandtradeandotherpayables)aresubsequentlymeasuredat amortizedcostusingtheeffectiveinterestratemethod.

Derivative Financial Instruments and Hedging Activities

Derivativefinancialinstrumentsareinitiallyrecognizedatfairvalueonthedateaderivativecontractisenteredinto andaresubsequentlyremeasuredattheirfairvalue.Themethodofrecognizingtheresultinggainorlossdependson whetherthederivativefinancialinstrumentsdesignatedasahedginginstrument,andifso,thenatureoftheitembeing hedged.Wedesignatecertainderivativefinancialinstrumentsaseither:

Ahedgeoftheexposuretochangesinthefairvalueofarecognizedassetorliability,orofanunrecognizedfirm commitment,thatareattributabletoaparticularrisk(fairvaluehedge);or
Ahedgeoftheexposureofvariabilityinthecashflowsofarecognizedassetorliability,ofaforecastedtransaction, thatisattributabletoaparticularrisk(cashflowhedge).

Wedocumentattheinceptionofthetransactiontherelationshipbetweenhedginginstrumentsandhedgeditems,as wellasourriskmanagementobjectivesandstrategyforundertakingvarioushedgingtransactions.Wealsodocument ourassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherderivativefinancialinstrumentsthatare usedinhedgingtransactionsarehighlyeffectiveinoffsettingchangesinfairvaluesorcashflowsofhedgeditems.

ThefairvaluesofvariousderivativefinancialinstrumentsusedforhedgingpurposesaredisclosedinNote5,Note6, Note12andNote13.MovementsinthehedgingreservewithinequityareshowninNote19.Thefairvaluepartofa derivativefinancialinstrumentthathasaremainingtermoflessorequalto12monthsisclassifiedascurrentassetor liability.Whenthefairvaluepartofaderivativefinancialinstrumenthasatermofmorethan12monthsitisclassifiedas non-current.

FairValueHedge

Changesinthefairvalueofaderivativefinancialinstrumentthatisdesignatedandqualifiesasafairvaluehedge, alongwiththegainorlossonthehedgedassetorliabilitythatisattributabletothehedgedrisk,arerecordedinthe ConsolidatedStatementofProfitorLoss.Wedesignateforeigncurrencyhedginginstrumentsasahedgeofthefair valueofarecognizedassetorliabilityinnon-functionalcurrencies.

Hedgeaccountingisdiscontinuedwhenwerevokethehedgingrelationship,thehedginginstrumentexpiresorissold, terminatedorexercised,ornolongerqualifiesforhedgeaccounting.Theadjustmenttothecarryingamountofthe hedgeditemarisingfromthehedgedriskisamortizedtotheConsolidatedStatementofProfitorLossfromthatdate.

Interestrateswapsthatarebeingusedtohedgethefairvalueoffixedloancouponspayablearedesignatedasfair valuehedges.Thechangeinfairvalueisintendedtooffsetthechangeinthefairvalueoftheunderlyingfixedloan coupons,whichisrecordedaccordingly.Thegainorlossrelatingtotheineffectiveportionofinterestrateswaps hedgingfixedloancouponspayableisrecognizedintheConsolidatedStatementofProfitorLossinfinancecostsor financeincome.

CashFlowHedge

Theeffectiveportionofchangesinthefairvalueofaderivativethatisdesignatedandqualifiesasacashflowhedge isrecognizedinOCIandaccumulatedundertheheadingofthehedgingreserve,inequity,untiltheunderlyinghedged transactionisrecognizedintheConsolidatedStatementofProfitorLoss.However,whentheforecastedtransactionthat ishedgedresultsintherecognitionofanon-financialassetoranon-financialliability,thegainsandlossespreviously deferredinequityaretransferredfromequityandincludedintheinitialmeasurementofthecostoftheassetorliability. Hedgeaccountingisdiscontinuedwhenwerevokethehedgingrelationship,thehedginginstrumentexpiresoris sold,terminatedorexercised,ornolongerqualifiesforhedgeaccounting.AnygainorlossrecognizedinOCIand accumulatedinequityatthattimeremainsinequityandisrecognizedwhentheforecastedtransactionisultimately recognizedintheConsolidatedStatementofProfitorLoss.Whenaforecastedtransactionisnolongerexpectedto occur,thecumulativegainorlossthatwasdeferredinequityisrecognizedimmediatelyintheConsolidatedStatement ofProfitorLoss.

Foreigncurrencyhedginginstrumentsthatarebeingusedtohedgecashflowsrelatingtofuturesalesorpurchase transactionsinnon-functionalcurrenciesaredesignatedascashflowhedges.Thegainorlossrelatingtotheineffective portionoftheforeigncurrencyhedginginstrumentsisrecognizedintheConsolidatedStatementofProfitorLossinnet salesorcostofsales.

Interestrateswapsthatarebeingusedtohedgechangesinthevariabilityoffutureinterestpaymentsaredesignated ascashflowhedges.Thechangeinfairvalueisintendedtooffsetthechangeinthefairvalueoftheunderlying assets,whichisrecordedaccordinglyinequityashedgingreserve.Themaximumlengthoftimeofcashflowhedges isthetimeelapsedfromthemomenttheexposureisgenerateduntiltheactualsettlement.Thegainorlossrelating totheineffectiveportionofinterestrateswapshedgingthevariabilityoffutureinterestreceiptsisrecognizedinthe ConsolidatedStatementofProfitorLossinfinanceincomeorfinancecosts.

Inventories

Inventoriesarestatedatthelowerofcost(first-in-first-outmethod)ornetrealizablevalue.Thecostsofinventories compriseofnetpricespaidformaterialspurchased,chargesforfreightandcustomsduties,productionlaborcostand factoryoverhead.Netrealizablevaluerepresentstheestimatedsellingpricelessallestimatedcostsofcompletionand coststobeincurredinmarketing,sellinganddistribution.

Inventoryprovisionsarerecognizedforslow-moving,obsoleteorunsellableinventory.Impairmentlossesforinventories aredeterminedbasedontheexpecteddemandwhichisderivedfromthesalesforecastsaswellastheexpected marketvalueoftheinventory.Anewassessmentofnetrealizablevalueismadeineachsubsequentperiod.Whenthe circumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistorwhenthereisclear evidenceofanincreaseinnetrealizablevaluebecauseofchangedeconomiccircumstances,theamountofthewritedownisreversed.

Accounts Receivable

Accountsreceivablearemeasuredatinitialrecognitionatfairvalueandaresubsequentlymeasuredatamortized costusingtheeffectiveinterestratemethod,lessallowancefordoubtfuldebts.Anallowancefordoubtfuldebtsof accountsreceivableisestablishedwhenthereisobjectiveevidencethatwewillnotbeabletocollectallamountsdue accordingtooriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtor willenterbankruptcyorfinancialrestructuringanddefaultordelinquencyinpaymentsareconsideredindicatorsthatthe accountsreceivableareimpaired.Theallowancerecognizedismeasuredasthedifferencebetweentheasset'scarrying amountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitial recognition.

Short-term Investments

Investmentswithremainingmaturitieslongerthanthreemonthsandlessthanoneyearatthedateofacquisitionare presentedasshort-terminvestments.Theshort-terminvestmentsareclassifiedasAFSfinancialassetsandarestated atfairvalue.Gainsandlosses,otherthanimpairments,interestincomeandforeignexchangeresults,arerecognizedin OCIuntiltheShort-terminvestmentsarederecognized.Uponderecognition,thecumulativegainorlossrecognizedin OCI,isrecognizedintheConsolidatedStatementofProfitorLoss.

Cash and Cash Equivalents

Cashandcashequivalentsconsistprimarilyofhighlyliquidinvestments,suchasbankdeposits,moneymarketfunds andinterest-bearingbankaccountswithinsignificantinterestrateriskandremainingmaturitiesofthreemonthsorless atthedateofacquisition.

Equity

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissuanceofnewsharesoroptions areshowninequityasadeduction,netofincometaxes,fromtheproceeds.

Treasurysharesaredeductedfromequityfortheconsiderationpaid,includinganydirectlyattributableincrementalcosts (netofincometaxes),untilthesharesarecancelledorreissued.Wheresuchsharesaresubsequentlyreissued,any considerationreceived,netofanydirectlyattributableincrementaltransactioncostsandrelatedincometaxeffectsis includedinequity.

Accounts Payable

Accountspayableareinitiallymeasuredatfairvalue,andaresubsequentlymeasuredatamortizedcost,usingthe effectiveinterestratemethod.

Revenue Recognition

Ingeneral,werecognizetherevenuefromthesaleofasystemuponshipmentandtherevenuefromtheinstallationof asystemuponcompletionofthatinstallationatthecustomersite.Eachsystemundergoes,priortoshipment,aFATin ASML'scleanroomfacilities,effectivelyreplicatingtheoperatingconditionsthatwillbepresentonthecustomer'ssite, inordertoverifywhetherthesystemwillmeetitsstandardspecificationsandanyadditionaltechnicalandperformance criteriaagreedwiththecustomer.Asystemisshipped,andrevenueisrecognized,onlyafterallspecificationsare metandcustomersign-offisreceivedorwaived.Incasenotallspecificationsaremetandtheremainingperformance obligationisnotessentialtothefunctionalityofthesystembutissubstantiveratherthaninconsequentialorperfunctory, aportionofthesalespriceisdeferred.Althougheachsystem'sperformanceisre-testeduponinstallationatthe customer'ssite,wehaveneverfailedtosuccessfullycompleteinstallationofasystematacustomer'spremises.

Inconnectionwiththeintroductionofnewtechnology,suchasoursecond-andthird-generationEUVsystems (NXE:3100andNXE:3300B,respectively),weinitiallydeferrevenuerecognitionuntilcompletionofinstallationand acceptanceofthenewtechnologybasedsystematcustomerpremises.Asoursystemsarebasedlargelyontwo productplatformsthatpermitincremental,modularupgrades,theintroductionofgenuinely"new"technologyoccurs infrequently,andinthepast15years,hasoccurredononlytwooccasions:2010(EUV)and1999(TWINSCAN).

Wehavenosignificantrepurchasecommitmentsinitsgeneralsalestermsandconditions.Fromtimetotimewe repurchasesystemsthatwehavemanufacturedandsoldand,followingrefurbishment,resellthosesystemstoother customers.Thisrepurchasedecisionisdrivenbymarketdemandexpressedbyothercustomersandnotbyexplicitor implicitcontractualarrangementsrelatingtotheinitialsale.Weconsiderreasonableoffersfromanyvendor,including customers,torepurchaseusedsystemssothatwecanrefurbish,resell,andinstallthesesystemsaspartofour normalbusinessoperations.Oncerepurchased,therepurchasepriceoftheusedsystemisrecordedinwork-inprocessinventoryduringtheperioditisbeingrefurbished,followingwhichtherefurbishedsystemisreflectedin finishedproductsinventoryuntilitissoldtothecustomer.AsofDecember31,2013and2012ASMLhadnorepurchase commitments.

Themainportionofourrevenueisderivedfromcontractualarrangementswithourcustomersthathavemultiple deliverables,suchasinstallationandtrainingservices,prepaidservicecontractsandprepaidextendedopticwarranty contracts.Therevenuerelatingtotheundeliveredelementsofthearrangementsisdeferreduntildeliveryofthese elements.Revenuefrominstallationandtrainingservicesisrecognizedwhentheservicesarecompleted.Revenuefrom prepaidservicecontractsandprepaidextendedandenhanced(optic)warrantycontractsisrecognizedoverthetermof thecontract.

Weoffercustomersdiscountsinthenormalcourseofsalesnegotiations.Thesediscountsaredirectlydeductedfromthe grosssalespriceatthemomentofrevenuerecognition.Inaddition,weoffervolumediscountstocustomers.Insome instancesthesevolumediscountscanbeusedtopurchasefieldoptions(systemenhancements).Therelatedamount isrecordedasareductioninrevenueattimeofshipment.Fromtimetotime,weofferfreeordiscountedproductsor services(awardcredits)toourcustomersaspartofavolumepurchaseagreement.Thesalestransactionthatgivesrise totheseawardcreditsisaccountedforasamultipleelementrevenuetransactionastheagreementsinvolvethedelivery ofmultipleproducts.Theconsiderationreceivedfromthesalestransactionisallocatedbetweentheawardcreditsand theotherelementsofthesalestransaction.Theconsiderationallocatedtotheawardcreditsisrecognizedasdeferred revenueuntilawardcreditsaredeliveredtothecustomer.Theamountallocabletoadelivereditemislimitedtothe amountthatisnotcontingentuponthedeliveryofadditionalitemsormeetingotherspecifiedperformanceconditions (thenon-contingentamount).

Revenuesarerecognizedexcludingthetaxesleviedonrevenues(netbasis).

Intheeventthatanarrangementwithacustomerbecomesonerous,werecognizealiabilityfortheamountthatthecost ofsettlingthearrangementexceedstheamountofthecontractprice.Obligationsresultingfromthearrangementcan eitherbeconstructiveorcontractual.Whenwesatisfytheonerousarrangement,wederecognizetherelatedliability.

LeaseArrangements

Ourleaseclassificationsforsystemsaredeterminedonacontract-bycontractbasis,takingthesubstanceanddetailsof eachleasecontractintoconsideration.

Finance Leases

Leaseswheresubstantiallyalltherisksandrewardsincidentaltoownershipofanassetaretransferredtothelessee areclassifiedasfinanceleasearrangements.Ifwehaveofferedthecustomerafinanceleasearrangement,revenueis recognizedatcommencementoftheleaseterm.Thedifferencebetweenthegrossfinancereceivableandthepresent valueoftheminimumleasepaymentsisinitiallyrecognizedasunearnedinterestandpresentedasadeductiontothe grossfinancereceivable.InterestincomeisrecognizedintheConsolidatedStatementofProfitorLossoverthetermof theleasecontractusingtheeffectiveinterestmethod.

Operating Leases

Leaseswherebyalltherisksandrewardsincidentaltoownershiparenottransferredtothelesseeareclassifiedas operatingleasearrangements.Ifwehaveofferedthecustomeranoperatingleasearrangement,thesystemisincluded inproperty,plantandequipmentuponcommencementofthelease.Revenuefromoperatingleasearrangementsis recognizedintheConsolidatedStatementofProfitorLossonastraight-linebasisoverthetermoftheleasecontract.

Warranty

Weprovidestandardwarrantycoverageonoursystemsfor12monthsandoncertainopticpartsfor60months, providinglaborandpartsnecessarytorepairsystemsandopticpartsduringthewarrantyperiod.Theestimated warrantycostsareaccountedforbyaccruingthesecostsforeachsystemuponrecognitionofthesystemsale.The estimatedwarrantycostsarebasedonhistoricalproductperformanceandfieldexpenses.Baseduponhistoricalservice records,wecalculatethechargeofaverageservicehoursandpartspersystemtodeterminetheestimatedwarranty charge.Onasemi-annualbasis,weassess,andupdateifnecessary,ouraccountingestimatesusedtocalculatethe standardwarrantyprovisionbasedonthelatestactualhistoricalwarrantycostsandexpectedfuturewarrantycosts.The extendedandenhanced(optic)warrantyonoursystemsandcertainopticalpartsisaccountedforasaseparateelement ofmultipleelementrevenuerecognitiontransactions.

Customer Co-Investment Program

InconnectionwiththeCCIP,weenteredintoinvestmentagreements,ShareholdersAgreementsandNREFunding AgreementsandcommercialagreementswithParticipatingCustomers.

Theinvestmentagreements,ShareholderAgreements,NREFundingAgreementsandcommercialagreementare accountedforasonetransactionwithseperatelyidentifiablecomponents.Thefollowingtwoseparatecomponents areidentified:(1)theshareissuance(governedbytheinvestmentagreementandtheShareholderAgreement)and(2) theNREfundingandcommercialdiscountsandcredits(governedbytheNREFundingAgreementandthecommercial agreementwithIntel).

ThesharesissuedtotheParticipatingCustomersarerecordedatfairvaluebasedonquotedshareprices(EUR3,977.4 million)withtheremainingaggregatearrangementconsiderationallocatedtotheNREfundingandcommercialdiscounts andcredits.Thedifferencebetweenthefairvalueofthesharesandthesubscriptionpriceoftheshares(EUR39.91) wasrecordedasadeductionfromequityuponissuanceoftheshares(EUR123.4million).Equityisincreasedtothefair valueofthesharesastheportionoftheNREfundingallocabletothesharesisreceivedovertheNREfundingperiod (2013-2017).TheamountsaredeemedreceivablesfromtheParticipatingCustomersintheircapacityasshareholdersof ASML.

ArelatedpartyrelationshipexistsbetweenASMLandIntelasaresultoftheequityinvestmentmadebyIntelaspartof theCCIP.Basedonthecommercialdiscountsandcredits(governedbytheCommercialAgreementwithIntel)andthe significantrelatedpartyrelationship,allNREfundingwillbedeferredandrecognizedintheConsolidatedStatementof ProfitorLossonlywhenthecommercialdiscountsandcreditsareearned.

InadditionseealsootherincomeforfurtherexplanationontheaccountingpolicieswithrespecttoCCIP.

Accounting for Shipping and Handling Fees and Costs

Webillourcustomerfor,andrecognizeasrevenue,anychargesforshippingandhandlingcosts.Therelatedcostsare recognizedascostofsales.

Cost of Sales

Costofsystemsalescomprisedirectproductcostssuchasmaterials,labor,costofwarranty,depreciation, amortization,shippingandhandlingcostsandrelatedoverheadcosts.ASMLaccruesfortheestimatedcostofthe warrantyonitssystems,whichincludesthecostoflaborandpartsnecessarytorepairsystemsduringthewarranty period.Theamountsrecordedinthewarrantyaccrualareestimatedbasedonactualhistoricalexpensesincurredand onestimatedprobablefutureexpensesrelatedtocurrentsales.Actualwarrantycostsarechargedagainsttheaccrued warrantyreserve.

Costsofservicesalescomprisedirectservicecostssuchasmaterials,labor,depreciationandoverheadcosts.

Costoffieldoptionsalescomprisedirectproductcostssuchasmaterials,labor,depreciation,costofwarranty, shippingandhandlingcostsandrelatedoverheadcosts.

Other Income

TheportionoftheNREfundingfromTSMCandSamsung,notallocabletothesharesissuedtotheParticipating CustomersundertheCCIP,isrecognizedinOtherincomewhentheR&Dcostsrelatingtothedevelopmentof450mm lithographyequipmentandEUVplatformsarerecognizedovertheNREfundingperiod(2013-2017).

Government Grants

GovernmentgrantsarenotrecognizeduntilthereisreasonableassurancethatASMLwillcomplywiththeconditions attachingtothemandthatthegrantswillbereceived.

GovernmentgrantswhoseprimaryconditionisthatASMLshouldpurchase,constructorotherwiseacquirenon-current assetsarerecognizedasdeferredincomeintheConsolidatedStatementofFinancialPositionandtransferredtothe ConsolidatedStatementofProfitorLossonasystematicandrationalbasisovertheusefullivesoftherelatedassets.

Othergovernmentgrantsarerecognizedasincomeovertheperiodsnecessarytomatchthemwiththecostsforwhich theyareintendedtocompensate,onasystematicbasis.Governmentgrantsthatarereceivableascompensation forexpensesorlossesalreadyincurred,orforthepurposeofgivingimmediatefinancialsupporttoASMLwithno futurerelatedcostsarerecognizedintheConsolidatedStatementofProfitorLossintheperiodinwhichtheybecome receivable.

Borrowing Costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassets thatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,areaddedtothecostof thoseassets,untilsuchtimethattheassetsaresubstantiallyreadyfortheirintendeduseorsale.

Income Taxes

Incometaxesrepresentthesumofthecurrenttaxpositionanddeferredtax.

Thecurrenttaxpositionisbasedontaxablebasefortheyear.Taxablebasediffersfromresultsasreportedinthe ConsolidatedStatementofProfitorLossbecauseitexcludesitemsofincomeorchargesthataretaxableordeductible inpriororlateryears,forexampletimingdifferencesbetweentaxablebaseandfinancialresults,anditfurther excludesitemsthatarenevertaxableordeductible,forexamplepermanentdifferencesbetweentaxablebaseand financialresults.Ourtaxpositioniscalculatedusingtaxratesthathavebeenenactedorsubstantivelyenactedatthe ConsolidatedStatementofFinancialPositiondate.

DeferredtaxisrecognizedondifferencesbetweenthecarryingamountsofassetsandliabilitiesintheConsolidated FinancialStatementsandthecorrespondingtaxbaseusedinthecomputationoftaxableprofit.Deferredtaxliabilities arerecognizedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognizedtotheextentthatitis probablethattaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilized.Such assetsandliabilitiesarenotrecognizedifthetemporarydifferencearisesfromgoodwillorfromtheinitialrecognition (otherthaninabusinesscombination)ofotherassetsandliabilitiesinatransactionthataffectsneitherthetaxableprofit northeaccountingprofit.

ThecarryingamountofdeferredtaxassetsisreviewedateachConsolidatedStatementofFinancialPositiondateand reducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailabletoallowallorpartofthe assettoberecovered.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichthe liabilityissettledortheassetrealized,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantively enactedbytheConsolidatedStatementofFinancialPositiondate.Themeasurementofdeferredtaxliabilitiesand assetsreflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichweexpect,atthereportingdate,to recoverorsettlethecarryingamountofourassetsandliabilities.

DeferredtaxassetsandliabilitiesareoffsetontheConsolidatedStatementofFinancialPositionwhenthereisalegally enforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandwhentheyrelatetoincometaxeslevied bythesametaxationauthorityandweintendtosettleourcurrenttaxassetsandliabilitiesonanetbasis.

Werecognizealiabilityforuncertaintaxpositionswhenitisprobablethatanoutflowofeconomicresourceswilloccur. Measurementoftheliabilityforuncertaintaxpositionsisbasedonmanagement'sbestestimateoftheamountoftax benefitthatwillbelost.

TheConsolidatedStatementofProfitorLosseffectofinterestandpenaltiesrelatingtoliabilitiesforuncertaintax positionsarepresentedbasedontheirnature,aspartofinterestchargesandaspartofSG&Acosts,respectively.

CurrentanddeferredtaxarerecognizedasanexpenseorincomeintheConsolidatedStatementofProfitorLoss, exceptwhentheyrelatetoitemscreditedordebiteddirectlytoOCIordirectlytoequity,inwhichcasethetaxisalso recognizeddirectlyinequity,orwheretheyarisefromtheinitialaccountingforabusinesscombination.Inthecaseof abusinesscombination,thetaxeffectistakenintoaccountincalculatinggoodwillorindeterminingtheexcessofour interestinthenetfairvalueoftheacquiredentity'sidentifiableassetsandliabilitiesincurredorassumedoverthecostof thebusinesscombination.

Contingencies and Litigation

Wearepartytovariouslegalproceedingsgenerallyincidentaltoourbusiness,asdisclosedinNote26.Inconnection withtheseproceedingsandclaims,ourmanagementevaluated,basedontherelevantfactsandlegalprinciples,the likelihoodofanunfavorableoutcomeandwhethertheamountofthelosscouldbereasonablyestimated.Inmostcases, managementdeterminedthateitheralosswasnotprobableorwasnotreasonablyestimable.Significantsubjective judgmentswererequiredintheseevaluations,includingjudgmentsregardingthevalidityofassertedclaimsandthe likelyoutcomeoflegalandadministrativeproceedings.Theoutcomeoftheseproceedings,however,issubjecttoa numberoffactorsbeyondourcontrol,mostnotablytheuncertaintyassociatedwithpredictingdecisionsbycourts andadministrativeagencies.Inaddition,estimatesofthepotentialcostsassociatedwithlegalandadministrative proceedingsfrequentlycannotbesubjectedtoanysensitivityanalysis,asdamageestimatesorsettlementoffersby claimantsmaybearlittleornorelationtotheeventualoutcome.Finally,inanyparticularproceeding,wemayagreeto settleortoterminateaclaimorproceedinginwhichwebelievethatitwouldultimatelyprevailwherewebelievethat doingso,whentakentogetherwithotherrelevantcommercialconsiderations,ismorecost-effectivethanengaginginan expensiveandprotractedlitigation,theoutcomeofwhichisuncertain.

WeaccruelegalcostsrelatedtolitigationinourConsolidatedStatementofProfitorLossatthetimewhentherelated legalservicesareactuallyprovidedtous.

Share-based Payments

Thecostofemployeeservicesreceived(compensationexpenses)inexchangeforawardsofequityinstrumentsare recognizedbaseduponthegrant-datefairvalueofstockoptionsandshares.Thegrant-datefairvalueofstockoptions isestimatedusingaBlack-Scholesoptionvaluationmodel.ThisBlack-Scholesmodelrequirestheuseofassumptions, includingexpectedsharepricevolatility,theestimatedlifeofeachawardandtheestimateddividendyield.Theriskfreeinterestrateusedinthemodelisdetermined,basedonanindexpopulatedwitheuro-denominatedEuropean governmentagencybondswithAAAratings,andwithalifeequaltotheexpectedlifeoftheequity-settledshare-based payments.Thegrant-datefairvalueofsharesisdeterminedbasedontheclosingpriceofourordinarysharesonNYSE EuronextinAmsterdamonthegrant-date.

Thegrant-datefairvalueoftheequity-settledshare-basedpaymentsisexpensedonastraight-linebasisoverthe vestingperiod,basedonourestimateofequityinstrumentsthatwilleventuallyvest.AteachConsolidatedStatement ofFinancialPositiondate,wereviseourestimateofthenumberofequityinstrumentsexpectedtovest.Theimpactof therevisionoftheoriginalestimates,ifany,isrecognizedintheConsolidatedStatementofProfitorLossintheperiodin whichtherevisionisdetermined,withacorrespondingadjustmenttoequity.

Ourcurrentshare-basedpaymentplansdonotprovideforcashsettlementofoptionsandstock.

Retirement Benefit Costs

Contributionstodefinedcontributionretirementbenefitplansarerecognizedasanexpensewhenemployeeshave renderedserviceentitlingthemtothecontributions.Paymentsmadetostate-managedretirementbenefitschemes aredealtwithaspaymentstodefinedcontributionplanswhereourobligationsundertheplansareequivalenttothose arisinginadefinedcontributionretirementbenefitplan.ASMLaccountsforitsmulti-employerdefinedbenefitplanasif itwereadefinedcontributionplanforthefollowingreasons:

ASMLisaffiliatedtoanindustrywidepensionfundandusesthepensionschemeincommonwithother participatingcompanies;and
Undertheregulationsofthepensionplan,theonlyobligationtheseparticipatingcompanieshavetowardsthe pensionfundistopaytheannualpremiumliability.Participatingcompaniesareundernoobligationwhatsoeverto payoffanydeficitsthepensionplanmayincur.Norhavetheyanyclaimtoanypotentialsurpluses.

Consolidated Statement of Cash Flows

TheConsolidatedStatementofCashFlowshasbeenpreparedbasedontheindirectmethod.Cashflowsinforeign currencieshavebeentranslatedataverageexchangerates.Exchangeratedifferenceoncashandcashequivalentsare shownseparatelyintheConsolidatedStatementofCashFlows.Acquisitionsofsubsidiariesarepresentednetofcash balancesacquired.

4. Business Combinations

OnMay30,2013,weconcludedtheacquisitionofCymerandobtainedcontrolthroughacquiring100percentof theissuedsharecapitalofCymer,foraconsiderationofEUR3.1billion.Therearenocontingentconsideration arrangements.

Priortotheacquisition,Cymerwasanindustryleaderindevelopingandservicinglithographylightsourcesusedby chipmanufacturersworldwidetopatternadvancedsemiconductorchips.CymerhasproductionfacilitiesinSanDiego, California,theUnitedStatesofAmericaandinPyongtaek-city,SouthKorea,Asia.

TheacquisitionofCymerwillsupportourstrategicobjectiveofdeliveringaneconomicallyviableEUVscannerto semiconductormanufacturerswithinthetimelinerequiredbyourcustomers.Inaddition,thereareopportunitiesto furtherenhanceCymer'sgrowingadvancedimmersionsystemsandrelatedinstalledbaseproductsbusiness.

TheamountsrecordedfortheacquisitionasdisclosedinourStatutoryInterimReportforthesixmonthsendedJune 30,2013wereprovisional.UnderIFRS3(R),adjustmentstoprovisionalfairvaluesandgoodwillcanbemadeinthe periodsubsequenttothebusinesscombination.Theperiodduringwhichsuchanadjustmentispermittedislimited to12monthsfromthedateofacquisition.Measurementperiodadjustmentshavebeenrecordedsubsequenttothe preparationoftheStatutoryInterimReportforthesixmonthsendedJune30,2013whichresultedinanincreaseofthe purchaseconsiderationofEUR178.4million.Thisadjustmentrelatestoasettlementgainregardingpre-existingEUV supplyarrangementsofEUR178.4millionasdisclosedbelow.Othermeasurementperiodadjustmentsresultedina decreaseofthefairvalueofthenetidentifiableassetsacquiredandamountedtoEUR6.8million.AsperDecember31, 2013wefinalizedourpurchasepriceallocationoftheCymeracquisition.

Thefollowingtablesummarizesthemajorclassesofconsiderationtransferred,andtherecognizedamountsofthefair valueoftheidentifiableassetsdistributedandthefairvalueoftheliabilitiesincurredorassumedattheacquisitiondate.

	May 30, 2013
(in thousands)	EUR1
Property,plantandequipment	124,308
Otherintangibleassets	751,542
Deferredtaxassets	97,565
Otherassets,currentandnon-current	29,418
Inventories	301,279
Currenttaxassets	37,289
Financereceivables	611
Accountsreceivable	121,395
Short-terminvestments	40,055
Cashandcashequivalents	84,129
Assets acquired	1,587,591
Long-termdebt,currentandnon-current	609
Deferredandothertaxliabilities	297,977
Accruedandotherliabilities,currentandnon-current	90,900
Accountspayable	151,412
Liabilities assumed	540,898
Total net identifiable assets	1,046,693
ConsiderationpaidincashforthetransactiononMay30,2013	486,325
Fairvalueofshares2	2,347,663
Fairvalueofequityawardscashsettled	41,516
Fairvalueofunvestedequityawardstobeexchanged	66,073
Gainonsettlementofpre-existingrelationships	178,427
Consideration transferred	3,120,004
Goodwill on acquisition	2,073,311

1 AmountswereconvertedintoeuroattherateofUSD/EUR1.3043

2 Aspartoftheconsiderationtransferred,Cymershareswereconvertedintoarighttoreceive36,479,109ASMLordinaryshares.Theseshareswere valuedat\$83.94beingtheopeningpriceonNASDAQatMay30,2013.AsatDecember31,201314,533ASMLordinarysharesarestilltobeissued.

Priortotheacquisition,supplyandR&DarrangementsexistedbetweenCymerandASML.Thesepre-existing relationshipswereeffectivelysettledasaresultoftheacquisition.WedeterminedthattheR&Darrangementaswellas thesupplyarrangements(excludingEUV)wereatcurrentmarkettermsandthereforenogainorlosswasrecognized. WedeterminedthattheEUVsupplyarrangementswerefavorabletoASMLandthereforeagainofEUR178.4million wasrecognizedincostofsaleswithinourConsolidatedStatementofProfitorLoss.Thisgainwasrecognized separatelyfromthebusinesscombinationasitisnotpartoftheassetsacquiredorliabilitiesassumed.Theapproachfor quantifyingthefavorablecomponenttoASMLoftheEUVsupplyarrangementsisbasedontheassessmentoftheprices forsuchlightsourcesiftheEUVsupplyarrangementswouldhavebeenrenegotiatedinMay2013.Thisapproachisin linewith(andoffsets)theexpectedlosses(forwhichaliabilityisrecognizedofEUR171.2millionincludedincoststo bepaid,seeNote23)toupgradethefirst11EUVsourcesinthefield,whichwasassumedbyASMLasaresultofthe acquisitionofCymer.

ThemajorityofthegoodwillarisingontheacquisitionofCymerisattributabletothefactthatwebelievethat theacquisitionwillhelpusachievingourstrategicobjectiveofdeliveringaneconomicallyviableEUVscannerto semiconductormanufacturersassoonasreasonablypossible.WebelievethatcombiningCymer'sexpertiseinEUVlight sourceswithourexpertiseinlithographysystemsdesignandintegrationwillreducetherisksrelatedtothesuccessful developmentofandacceleratetheintroductionofEUVtechnology.Withouttheacquisition,wedonotbelievethat CymerwouldhavesufficientresourcestocompletethedevelopmentoftheEUVlightsourceandasaresult,theonly waytomaketheEUVlightsourcedevelopmentsuccessfulwithoutadditionaldelaywasthroughtheacquisitionof Cymer.WebelievethattheacquisitionwillallowustomoreeffectivelypartitionresponsibilitiesbetweenCymer,its suppliersanduswithrespecttoEUVlightsourcedevelopment,therebyreducingriskandincreasingdevelopment speed.Also,synergiesareexpectedfromthecombination.AgoodwillamountofEUR1656.5millionhasbeenallocated toourexistingCGUASMLexcludingCLS.TheremainingpartofthegoodwillofEUR416.8millionhasbeenallocatedto CGUCLS.Noneofthegoodwillrecognizedisexpectedtobedeductibleforincometaxpurposes.

CymercontributedEUR178.7 milliontototalnetsalesandalossofEUR125.2milliontonetincome(includingthe chargeofEUR85.5millionrelatedtothepurchasepriceallocationadjustments)fortheperiodbetweenthedateof acquisitionandtheConsolidatedStatementofFinancialPositiondate.

In2013,weincurredEUR7.8milliontransactioncostsrelatingtotheacquisitionofCymer.Thesecostsareincludedin SG&A.

ThefollowingunauditedproformasummarypresentsestimatedconsolidatedinformationofASMLasiftheCymer acquisitionhadoccurredonJanuary1,2013.Theseamountshavebeencalculatedafterapplyingouraccounting policiesandadjustingtheresultsofCymertoreflectthechargesandbenefitsassumingthefairvalueadjustmentshad beenappliedfromJanuary1,2013withtheconsequentialtaxeffects.

Pro Forma Year ended December 31 2013 (in millions) EUR Totalnetsales 5,362



1,186 1 Netincome

1 ProformanetincomewasadjustedtoexcludeEUR25millionofacquisitionrelatedcostsin2013.

5. Fair Value Measurements

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransaction betweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementhierarchyprioritizestheinputsto valuationtechniquesusedtomeasurefairvalueasfollows:

Level1:Valuationsbasedoninputssuchasquotedpricesforidenticalassetsorliabilitiesinactivemarketsthatthe entityhastheabilitytoaccess.
Level2:Valuationsbasedoninputsotherthanlevel1inputssuchasquotedpricesforsimilarassetsorliabilities, quotedpricesinmarketsthatarenotactive,orotherinputsthatareobservableorcanbecorroboratedbyobservable dataforsubstantiallythefulltermoftheassetsorliabilities.
Level3:Valuationsbasedoninputsthataresupportedbylittleornomarketactivityandthataresignificanttothefair valueoftheassetsorliabilities.

Thefairvaluehierarchygivesthehighestprioritytoquotedprices(unadjusted)inactivemarketsforidenticalassets orliabilities(Level1)andthelowestprioritytounobservableinputs(Level3).Afinancialinstrument'sfairvalue classificationisbasedonthelowestlevelofanyinputthatissignificantinthefairvaluemeasurementhierarchy.

Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

Investmentsinmoneymarketfunds(aspartofourcashandcashequivalents)havefairvaluemeasurementswhichare allbasedonquotedpricesforidenticalassetsorliabilities.

OurAFSfinancialinstrumentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.Dutch TreasuryCertificatesaretradedinanactivemarketandthefairvalueisdeterminedbasedonquotedmarketpricesfor identicalassetsorliabilities.Thefairvalueofdepositsisdeterminedwithreferencetoquotedmarketpricesforsimilar assetsordiscountedcashflowanalysis.

Theprincipalmarketinwhichweexecuteourderivativecontractsistheinstitutionalmarketinanover-the-counter environmentwithahighlevelofpricetransparency.Themarketparticipantsusuallyarelargecommercialbanks.The valuationinputsforourderivativecontractsarebasedonquotedpricesandquotingpricingintervalsfrompublicdata sources;theydonotinvolvemanagementjudgement.

Thevaluationtechniqueusedtodeterminethefairvalueofforwardforeignexchangecontracts(usedforhedging purposes)approximatestheNPVtechniquewhichistheestimatedamountthatabankwouldreceiveorpaytoterminate theforwardforeignexchangecontractsatthereportingdate,takingintoaccountcurrentinterestratesandcurrent exchangerates.

Thevaluationtechniqueusedtodeterminethefairvalueofinterestrateswaps(usedforhedgingpurposes)istheNPV technique,whichistheestimatedamountthatabankwouldreceiveorpaytoterminatetheswapagreementsatthe reportingdate,takingintoaccountcurrentinterestrates,discountedataratethatreflectsthecreditriskofvarious counterpartiesorourowncreditrisk.

OurEurobondsserveashedgeditemsinfairvaluehedgerelationshipsinwhichwehedgethevariabilityofchangesin thefairvalueofourEurobondsduetochangesinmarketinterestrateswithinterestrateswaps.Thefairvaluechanges oftheseinterestrateswapsarerecordedontheConsolidatedFinancialPositionunderderivativefinancialinstruments (withinothercurrentassetsandothernon-currentassets)andthecarryingamountsoftheEurobondsareadjustedfor thesefairvaluechangesonly.FortheactualaggregatecarryingamountandthefairvalueofourEurobonds,seeNote 20.

Thefollowingtablepresentsourfinancialassetsandfinancialliabilitiesthataremeasuredatfairvalueonarecurring basis:

Total	Level 3	Level 2	Level 1	As of December 31, 2013
EUR	EUR	EUR	EUR	(in thousands)
				Assets
71,620	-	71,620	-	Derivativefinancialinstruments1
535,000	-	-	535,000	Moneymarketfunds2
679,884	-	375,000	304,884	Short-terminvestments3
1,286,504	-	446,620	839,884	Total
				Liabilities
1,017,501	-	1,017,501	-	Long-termdebt4
11,652	-	11,652	-	Derivativefinancialinstruments1
1,029,153	-	1,029,153	-	Total

1 Derivativefinancialinstrumentsconsistofforwardforeignexchangecontractsandinterestrateswaps.SeeNote6.

2 Moneymarketfundsarepartofourcashandcashequivalents.

3 Short-terminvestmentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.

4 Long-termdebtmainlyrelatestoourEurobonds(carryingamountasatDecember31,2013:EUR1,017.5million)andexcludesaccruedinterest.For furtherdetailsseeNote20.

Total EUR	Level 3 EUR	Level 2 EUR	Level 1 EUR	As of December 31, 2012 (in thousands)
				Assets
151,748	-	151,748	-	Derivativefinancialinstruments1
385,420	-	-	385,420	Moneymarketfunds2
930,005	-	650,017	279,988	Short-terminvestments3
1,467,173	-	801,765	665,408	Total
				Liabilities
756,502	-	756,502	-	Longtermdebt4
10,893	-	10,893	-	Derivativefinancialinstruments1
767,395	-	767,395	-	Total

1 Derivativefinancialinstrumentsconsistofforwardforeignexchangecontractsandinterestrateswaps.SeeNote6.

2 Moneymarketfundsarepartofourcashandcashequivalents.

3 Short-terminvestmentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.

4 Long-termdebtmainlyrelatestoourEurobonds(carryingamountasatDecember31,2012:EUR707.1million)andexcludesaccruedinterest.For furtherdetailsseeNote20.

TherewerenotransfersbetweenlevelsduringtheyearsendedDecember31,2013andDecember31,2012.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

In2013,werecognizedimpairmentchargesofEUR13.1million(2012:EUR3.2million)onourproperty,plantand equipment,mainlyrelatingtobuildings(EUR3.6million)andmachineryandequipment(EUR8.0million).Valuation oftheseassetsisclassifiedasLevel3inthefairvaluehierarchysincetheirfairvaluesweredeterminedbasedon unobservableinputs.Theimpairmentchargeisdeterminedbasedonthedifferencebetweentheassets'valueinuse (beingEUR16.4million)andtheircarryingamount.Forfurtherinformation,seeNote9.

Wedidnotrecognizeanyimpairmentchargesforgoodwillandotherintangibleassetsduring2013.SeeNotes10and11 formoreinformation.ForfairvaluemeasurementsinrelationtotheacquisitionofCymer,werefertoNote4.

6. Financial Risk Management

Foreign Currency Risk Management

Oursalesarepredominatelydenominatedineuros.Exceptionsmayoccuronacustomerbycustomerbasis.Ourcost ofsalesandothercostsaremainlydenominatedineuros,toacertainextentinU.S.dollarandJapaneseyenandtoa limitedextentinothercurrencies.Therefore,weareexposedtoforeigncurrencyexchangerisk.

Itisourpolicytohedgematerialtransactionexposures,suchasforecastedsalesandpurchasetransactions,and materialnetremeasurementexposures,suchasaccountsreceivableandpayable.Wehedgetheseexposuresthrough theuseofforeignexchangecontracts.

AsofDecember31,2013,accumulatedOCIincludesEUR10.7million(netoftaxes:EUR9.5million;2012:EUR5.3 millionloss)representingthetotalanticipatedlosstobechargedtocostofsales,whichwilloffsettheEURequivalentof foreigncurrencydenominatedforecastedpurchasetransactions.Allamountsareexpectedtobechargedoverthenext 12months.AsofDecember31,2013,noamountwasincludedinaccumulatedOCIrepresentingthetotalanticipated gaintobereleasedtosales(2012:EUR4.3milliongain,netoftaxes).Theeffectivenessofallcontractsforwhichwe applyhedgeaccountingismonitoredonaquarterlybasisthroughoutthelifeofthehedges.During2012and2013,no ineffectivehedgerelationshipswererecognized.

Interest Rate Risk Management

Wehaveinterest-bearingassetsandliabilitiesthatexposeustofluctuationsinmarketinterestrates.Weuseinterest rateswapstoaligntheinterest-typicaltermsofinterest-bearingliabilitieswiththeinterest-typicaltermsofinterestbearingassets.Theremayberesidualinterestraterisktotheextenttheassetandliabilitypositionsdonotfullyoffset.

Aspartofourhedgingpolicy,weuseinterestrateswapstohedgechangesinfairvalueofourEurobondsdueto changesinmarketinterestrates,therebyoffsettingthevariabilityoffutureinterestreceiptsonpartofourcashand cashequivalents.During2013,thesehedgeswerehighlyeffectiveinhedgingthefairvalueexposuretointerestrate movements.ThechangesinfairvalueoftheEurobondswereincludedatthesametimeintheConsolidatedStatement ofProfitorLossasthechangesinthefairvalueoftheinterestrateswaps.

Furthermore,aspartofourhedgingpolicy,weuseinterestrateswapstohedgethevariabilityoffutureinterestcash flowsrelatingtocertainofouroperatingleaseobligations.During2013,thesehedgeswerehighlyeffectiveinhedging thecashflowexposuretointerestratemovements.

Financial Instruments

Weuseforeignexchangecontractstomanageourforeigncurrencyriskandinterestrateswapstomanageourinterest raterisk.Thefollowingtablesummarizesthenotionalamountsandestimatedfairvaluesofourderivativefinancial instruments:

	2013		2012
As of December 31	Notional amount	Fair Value	Notional amount	Fair Value
(in thousands)	EUR	EUR	EUR	EUR
Forwardforeignexchangecontracts¹	986,986	8,583	262,146	16,805
Interestrateswaps²	1,013,053	51,385	624,900	124,050

1 Relatestoforwardcontractsassignedasahedgetoforecastedsalesandpurchasetransactionsandtomonetaryassetsandliabilities,mainlyinU.S. dollarandJapaneseyen.

2 Relatestointerestrateswapsassignedasahedgetointerestbearingassetsandliabilities,mainlyrelatedtoourEurobonds;thefairvalueofthe interestrateswapsincludesaccruedinterest.

Sensitivity Analysis Financial Instruments

ForeignCurrencySensitivity

WearemainlyexposedtofluctuationsinexchangeratesbetweentheeuroandtheU.S.dollarandtheeuroandthe Japaneseyen.Thefollowingtabledetailsoursensitivitytoa10.0percentstrengtheningofforeigncurrenciesagainst theeuro.Thesensitivityanalysisincludesforeigncurrencydenominatedmonetaryitemsoutstandingandadjuststheir translationattheperiodendfora10.0percentstrengtheninginforeigncurrencyrates.Apositiveamountindicatesan increaseinincomebeforeincometaxesorOCI,asshown.

		2013		2012
	Impact on income before		Impact on income before
	income taxes	Impact on equity	income taxes	Impact on equity
(in thousands)	EUR	EUR	EUR	EUR
U.S.dollar	(15,608)	21,059	(5,258)	13,669
Japaneseyen	183	913	465	(3,218)
Taiwansesdollar	(7,692)	-	(4,956)
Othercurrencies	(9,281)	-	(2,718)	-
Total	(32,398)	21,972	(12,467)	10,451

ItisourpolicytolimittheeffectsofcurrencyexchangeratefluctuationsonourConsolidatedStatementofProfitor Loss.Theincreasedeffectonincomebeforeincometaxesin2013comparedwith2012reflectsourhighernetexposure atyearend.Thenegativeeffectonincomebeforeincometaxesaspresentedinthetableabovefor2013ismainly attributabletotimingdifferencesbetweenthearisingandhedgingofexposures.

Theeffectsofthefairvaluemovementsofcashflowhedges,enteredintoforU.S.dollarandJapaneseyentransactions arerecognizedinOCI.TheincreasedU.S.dollarandJapaneseyeneffectonOCIin2013comparedwith2012isthe resultofanincreaseinoutstandingpurchasehedges.

Fora10.0percentweakeningoftheforeigncurrenciesagainsttheeuro,therewouldbeapproximatelyanequalbut oppositeeffectontheincomebeforeincometaxesandOCI.

InterestRateSensitivity

Thesensitivityanalysisbelowhasbeendeterminedbasedontheexposuretointerestratesforbothderivativefinancial andnon-derivativefinancialinstrumentsattheStatementofFinancialPositiondatewiththestipulatedchangetaking placeatthebeginningofthefinancialyearandheldconstantthroughoutthereportingperiod.Thetablebelowshows theeffectofa1.0percentagepointincreaseininterestratesonourincomebeforeincometaxesandOCI.Apositive amountindicatesanincreaseinincomebeforeincometaxesandOCI.

	2013		2012
	Impact on income before income taxes	Impact on OCI	Impact on income before income taxes	Impact on OCI
(in thousands)	EUR	EUR	EUR	EUR
Effectofa1.0percentpointincreaseininterestrates	19,969	1,183	20,706	1,488

Thepositiveeffectonincomebeforeincometaxesmainlyrelatestoourcashandcashequivalentsandshort-term investments.ThepositiveeffectonOCI,ismainlyattributabletothefairvaluemovementsoftheinterestrateswaps designatedascashflowhedges.

Fora1.0percentagepointdecreaseininterestratestherewouldbealoweroppositeeffectonincomebeforeincome taxesandOCIduetothecurrentinterestrates.

Credit Risk Management

Financialinstrumentsthatpotentiallysubjectustosignificantconcentrationofcreditriskconsistprincipallyofcash andcashequivalents,short-terminvestments,derivativefinancialinstrumentsusedforhedgingactivities,accounts receivableandfinancereceivables.

Cashandcashequivalents,short-terminvestmentsandderivativefinancialinstrumentscontainanelementofriskof thecounterpartiesbeingunabletomeettheirobligations.Ourriskmanagementprogramfocusesappropriatelyon thecurrentenvironmentofuncertaintyinthefinancialmarkets,especiallyintheeuro-zone.Weinvestourcashand cashequivalentsandshort-terminvestmentsinshort-termdepositswithhigh-ratedfinancialinstitutionsandtheDutch government,inDutchTreasuryCertificatesandinAAAm-ratedmoneymarketfundsthatinvestinhigh-ratedshort-term debtsecuritiesoffinancialinstitutionsandgovernments.Tomitigatetheriskthatanyofourcounterpartiesinhedging transactionsisunabletomeetitsobligations,weonlyenterintotransactionswithalimitednumberofmajorfinancial institutionsthathavegoodcreditratingsandcloselymonitorthecreditworthinessofourcounterparties.Concentration riskismitigatedbylimitingtheexposuretoasinglecounterparty.

OurcustomersconsistofICmanufacturerslocatedthroughouttheworld.Weperformongoingcreditevaluationsof ourcustomers'financialcondition.Wetakeadditionalmeasurestomitigatecreditriskwhenconsideredappropriateby meansofe.g.downpayments,lettersofcreditorretentionofownershipprovisionsincontracts.Retentionofownership enablesustorecoverthesystemsintheeventacustomerdefaultsonpayment.

Liquidity Risk Management

Ourliquidityneedsareaffectedbymanyfactors,someofwhicharebasedonthenormalongoingoperationsofthe business,andothersthatrelatetotheuncertaintiesoftheglobaleconomyandthesemiconductorindustry.Although ourcashrequirementsfluctuatebasedonthetimingandextentofthesefactors,webelievethatcashgeneratedfrom operations,togetherwiththeliquidityprovidedbyexistingcashandcashequivalentsandshort-terminvestmentsand ourborrowingcapabilityaresufficienttosatisfyourcurrentrequirements,includingour2014capitalexpenditures.We intendtoreturncashtoourshareholdersonaregularbasisintheformofdividendpaymentsand,subjecttoouractual andanticipatedliquidityrequirementsandotherrelevantfactors,sharebuybacksorcapitalrepayment.

Ourliquidityanalysisofderivativefinancialinstrumentsisasfollows:

(in thousands)	Total EUR	Less than 1 year EUR	1-3 years EUR	3-5 years EUR	After 5 years EUR
Cash outflows Currencycontracts	8,059	8,059	-	-	-
Interestrateswaps	259,122	15,569	40,046	51,921	151,586
Cash inflows
Currencycontracts	16,582	16,582	-	-	-
Interestrateswaps	309,031	39,078	78,405	64,985	126,563

Forinterestrateswapsincludedinabovetabletheamountsdisclosedhavebeendeterminedbyreferencetothe projectedinterestratesasillustratedbytheyieldcurvesasatDecember31,2013.

Formoreinformationonourcontractualobligations,includingtheliquidityanalysisinrelationtoourborrowings,see Note25.Additionallyotherfinancialliablities(includingtradepayables)areexpectedtobesettledwithinoneyear.

7. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

Intheprocessofapplyingouraccountingpolicies,whicharedescribedinNote3,managementhasmadesome judgmentsthathavesignificanteffectontheamountsrecognizedintheConsolidatedFinancialStatements.Thesealso includekeyassumptionsconcerningthefuture,andotherkeysourcesofestimationuncertaintyattheConsolidated StatementofFinancialPositiondate,thathaveasignificantriskofcausingamaterialadjustmenttothecarrying amountsofassetsandliabilitieswithinthenextfinancialyear.

Business Combinations

Warranty

Weprovidestandardwarrantycoverageonoursystemsfor12monthsandoncertainopticpartsfor60months, providinglaborandpartsnecessarytorepairsystemsandopticpartsduringthewarrantyperiod.Theestimated warrantycostsareaccountedforbyaccruingthesecostsforeachsystemuponrecognitionofthesystemsale.The estimatedwarrantycostsarebasedonhistoricalproductperformanceandfieldexpenses.Baseduponhistoricalservice records,wecalculatethechargeofaverageservicehoursandpartspersystemtodeterminetheestimatedwarranty costs.Onasemi-annualbasis,weassess,andupdateifnecessary,ouraccountingestimatesusedtocalculatethe standardwarrantyreservebasedonthelatestactualhistoricalwarrantycostsandexpectedfuturewarrantycosts.The actualproductperformanceand/orfieldexpenseprofilesmaydiffer,andinthosecasesweadjustourwarrantyreserves accordingly.Futurewarrantycostsmayexceedourestimates,whichcouldleadtoanincreaseinourcostofsales.In 2013and2012,thereassessmentsofthewarrantyreserve,andresultingchangeinaccountingestimate,didnothavea materialeffectonourConsolidatedStatementofProfitorLossandEarningspershareamounts.

Evaluation of Long-lived Assets for Impairment

Long-livedassetsincludegoodwill,otherintangibleassetsandproperty,plantandequipment.

Ateachreportingdate,wereviewthecarryingamountsofourtangibleandintangibleassetstodeterminewhetherthere isanyindicationthatthoseassetshavesufferedanimpairmentloss.Ifanysuchindicationexists,theRecoverable Amountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss(ifany).Whereitisnotpossible toestimatetheRecoverableAmountofanindividualasset,weestimatetheRecoverableAmountoftheCGUtowhich theassetbelongs.Whereareasonableandconsistentbasisofallocationcanbeidentified,corporateassetsarealso allocatedtoindividualCGUs,orotherwisetheyareallocatedtothesmallestgroupofCGUsforwhichareasonableand consistentallocationbasiscanbeidentified.

Goodwillandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,andwheneverthereisan indicationthattheassetmaybeimpaired.

IftheRecoverableAmountofanasset(orCGU)isestimatedtobelessthanitscarryingamount,thecarryingamountof theasset(orCGU)isreducedtoitsRecoverableAmount.Animpairmentlossisrecognizedimmediatelyinprofitorloss, unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossistreatedasarevaluation decrease.

During2013,werecordedimpairmentchargesofEUR13.1million(2012:EUR3.2million)ofwhichwerecordedEUR6.3 million(2012:EUR1.0million)incostofsales,EUR6.7million(2012:EUR0.5million)inR&DcostsandEUR0.1million (2012:EUR1.7million)inSG&Acosts.

Wedidnotrecordanyimpairmentchargesinotherintangibleassets.

Capitalization of Development Expenditures

Indeterminingthedevelopmentexpenditurestobecapitalized,ASMLmakesestimatesandassumptionsbasedon expectedfutureeconomicbenefitsgeneratedbyproductsthataretheresultofthesedevelopmentexpenditures.Other importantestimatesandassumptionsinthisassessmentprocessaretherequiredinternalrateofreturn,thedistinction betweenresearchanddevelopmentandtheestimatedusefullife.

Accounts Receivable and Finance Receivables

Amajorityofouraccountsreceivableandfinancereceivablesarederivedfromsalestoalimitednumberoflarge multinationalsemiconductormanufacturersthroughouttheworld.Inordertomonitorpotentialcreditlosses,weperform ongoingcreditevaluationsofourcustomers'financialcondition.Respectiveallowancesforcreditlossesonboth accountsreceivableandfinancereceivablesaremaintainedbaseduponmanagement'sassessmentoftheexpected collectabilityofallaccountsreceivableandfinancereceivables.Therespectiveallowancesforcreditlossesonaccounts receivableandfinancereceivablesarereviewedperiodicallytoassesstheadequacyoftheseallowances.Inmakingthis assessment,managementtakesintoconsideration(i)anycircumstancesofwhichweareawareregardingacustomer's inabilitytomeetitsfinancialobligations;and(ii)ourjudgmentsastopotentialprevailingeconomicconditionsinthe industryandtheirpotentialimpactonourcustomers.Wherewedeemitprudenttodoso,wemayrequiresomeformof creditenhancement,suchaslettersofcredit,downpaymentsandretentionofownershipprovisionsincontracts,before shippingsystemstocertaincustomers,whichareintendedtorecoverthesystemsintheeventacustomerdefaultson payment.Wehavenotincurredanymaterialaccountsreceivableorfinancereceivablecreditlossesduringthepastthree years.Abusinessfailureofoneofourmaincustomerscouldresultinasubstantialcreditlossinrespecttoamounts owedtousbythatcustomer,whichcouldadverselyaffectourbusiness,financialconditionandproftorloss.

Inventories

Inventoriesarestatedatthelowerofcost(first-in-first-outmethod)ornetrealizablevalue.Thecostofinventories comprisenetpricespaidformaterialspurchased,chargesforfreightandcustomsduties,productionlaborcostand factoryoverhead.Netrealizablevaluerepresentstheestimatedsellingpricelessallestimatedcostsofcompletionand coststobeincurredinmarketing,sellinganddistribution.

Inventoryprovisionsarerecognizedforslow-moving,obsoleteorunsellableinventoriesandarereviewedonaquarterly basis.Ourmethodologyinvolvesmatchingouronhandandon-orderinventorywithourmanufacturingforecast.In determininginventoryprovisions,weevaluateinventoryinexcessofourforecastedneedsonbothtechnologicaland economiccriteriaandmakeappropriateprovisionstoreflecttheriskofobsolescence.Thismethodologyissignificantly affectedbyourforecastedneedsforinventories.Ifactualdemandorusageweretobelowerthanestimated,additional inventoryprovisionsforexcessorobsoleteinventorymayberequired,whichcouldhaveamaterialadverseeffectonour business,financialconditionandprofitorloss.

Income Taxes

WeoperateinvarioustaxjurisdictionsinAsia,theUnitedStatesandEuropeandmustcomplywiththetaxlawsofeach ofthesejurisdictions.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichthe liabilityissettledortheassetrealized,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantively enactedatConsolidatedStatementofFinancialPositiondate.Themeasurementofdeferredtaxliabilitiesandassets reflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichweexpect,atthereportingdate,torecoveror settlethecarryingamountofourassetsandliabilities.

Wecontinuouslyassessourabilitytorealizeourdeferredtaxassetsresulting,amongothers,fromnetoperatingloss carry-forwards.Thecarryingamountisreductedtotheextendthatitisnolongerprobablethatsufficienttaxableprofits willbeavailabletoallowallorpartoftheassettoberecovered.

Thecalculationofourtaxliabilitiesinvolvesuncertaintiesintheapplicationofcomplextaxlaws.Ourestimateforthe potentialoutcomeofanyuncertaintaxpositionishighlyjudgmental.However,webelievethatwehaveadequately providedforuncertaintaxpositions.Settlementoftheseuncertaintiesinamannerinconsistentwithourexpectations couldhaveamaterialimpactonourresultsofoperations,financialconditionandcashflows.Werecognizealiabilityfor uncertaintaxpositionswhenitisprobablethatanoutflowofeconomicresourceswilloccur.Measurementoftheliability foruncertaintaxpositionsisbasedonmanagement'sbestestimateoftheamountoftaxbenefitthatwillbelost.

8. Earnings per Share

Basicnetincomeperordinaryshareiscalculatedbydividingnetincomebytheweightedaveragenumberofordinary sharesoutstandingforthatperiod.Thedilutiveeffectiscalculatedusingthetreasurystockmethod.Excludedfrom thedilutedweightedaveragenumberofsharesoutstandingcalculationarecumulativepreferencesharescontingently issuabletothepreferencesharefoundation,sincetheyrepresentadifferentclassofstockthantheordinaryshares.See Note19forfurtherdiscussion.

Thebasicanddilutednetincomeperordinarysharehasbeencalculatedinaccordancewiththefollowingschedule:

As of December 31	2013	2012
(in thousands, except per share data)	EUR	EUR
Net income	1,193,844	1,302,347
Weighted average number of shares outstanding during the year (after deduction of treasury stock)	429,770	424,096
Basic net income per ordinary share	2.78	3.07
Weighted average number of shares:	429,770	424,096
Plussharesapplicableto: Optionsandconditionalshares1	3,676	2,890
Dilutive potential ordinary shares	3,676	2,890
Adjusted weighted average number of shares	433,446	426,986
Diluted net income per ordinary share 1	2.75	3.05

9. Property, Plant and Equipment

Property,plantandequipmentconsistofthefollowing:

	Land,	Machinery		Furniture, fixtures and
	buildings and constructions	and equipment	Leasehold improvements	other equipment	Total
(in thousands)	EUR	EUR	EUR	EUR	EUR
Cost
Balance,January1,2012	742,141	764,023	206,660	344,979	2,057,803
Additions	106,234	248,429	8,883	22,749	386,295
Disposals	(347)	(317,022)	(300)	(30,894)	(348,563)
Effectofchangesinexchangerates	(995)	(4,671)	(391)	(59)	(6,116)
Balance,December31,2012	847,033	690,759	214,852	336,775	2,089,419
Acquisitionsthroughbusinesscombinations	71,040	48,965	1,057	3,246	124,308
Additions	123,646	171,895	11,543	32,168	339,252
Disposals	(14)	(90,244)	(336)	(1,925)	(92,519)
Effectofchangesinexchangerates	(6,605)	(17,490)	(1,464)	(1,783)	(27,342)
Balance, December 31, 2013	1,035,100	803,885	225,652	368,481	2,433,118
Accumulated depreciation and impairment
Balance,January1,2012	155,877	401,800	145,775	300,741	1,004,193
Depreciation	31,598	110,571	13,416	23,668	179,253
Impairmentcharges	649	906	-	1,679	3,234
Disposals	(347)	(92,205)	(248)	(30,575)	(123,375)
Effectofchangesinexchangerates	(505)	(3,090)	(165)	(49)	(3,809)
Balance,December31,2012	187,272	417,982	158,778	295,464	1,059,496
Depreciation	47,791	114,677	12,415	22,170	197,053
Impairmentcharges	3,619	7,997	1,352	89	13,057
Disposals	(5)	(42,625)	(266)	(1,282)	(44,178)
Effectofchangesinexchangerates	(1,116)	(8,068)	(422)	(544)	(10,150)
Balance, December 31, 2013	237,561	489,963	171,857	315,897	1,215,278

Carrying amount
December31,2012	659,761	272,777	56,074	41,311	1,029,923
December 31, 2013	797,539	313,922	53,795	52,584	1,217,840

Property,plantandequipmentincludeamountsrecordedasaresultoftheacquisitionofCymer.Formoreinformation withrespecttobusinesscombinations,werefertoNote4.

AsofDecember31,2013,thecarryingamountincludesassetsunderconstructionforland,buildingsandconstructions ofEUR49.3million(2012:EUR5.5million),machineryandequipmentofEUR35.9million(2012:EUR21.8million), leaseholdimprovementsofEUR1.0million(2012:EUR1.0million)andfurniture,fixturesandotherequipmentofEUR 13.9million(2012:EUR9.3million).AsofDecember31,2013,thecarryingamountoflandamountstoEUR79.2million (2012:EUR60.7million).

Themajorityoftheadditionsanddisposalsin2013and2012relatetomachineryandequipment(includingoperating leasestocustomers,prototypes,evaluationandtrainingsystems).ThesesystemsaresimilartothosethatASMLsells initsordinarycourseofbusiness.Thesystemsarecapitalizedunderproperty,plantandequipmentbecausetheyare heldforownuse,foroperatingleaseandforevaluationpurposes.Thesesystemsarerecordedatcostanddepreciated overtheirexpectedusefullifetakingintoconsiderationtheirresidualvalue.Fromthetimethattheseassetsareno longerheldforusebutintendedforsaleintheordinarycourseofbusiness,theyarereclassifiedfromproperty,plantand equipmenttoinventoryattheloweroftheircarryingvalueorfairmarketvalue.Sincethetransfersbetweeninventory andproperty,plantandequipmentarenon-cashevents,thesearenotreflectedintheConsolidatedStatementofCash Flows.AnamountofEUR115.9million(2012:EUR204.8million)oftheadditionsrelatestonon-cashtransfersfrom inventoryandanamountofEUR12.5million(2012:EUR9.6million)relatestoothernon-cashmovements(mainly capitalexpendituresnotyetpaidasatDecember31,2013).AnamountofEUR48.2million(2012:EUR222.9million) ofthedisposalsrelatestonon-cashtransferstoinventory.Whensold,theproceedsandcostofthesesystemsare recordedasnetsalesandcostofsales,respectively,identicaltothetreatmentofothersalestransactions.Thecostof salesforthesesystemsincludestheinventoryvalueandtheadditionalcostsofrefurbishing(materialsandlabor).

Theimpairmentchargesrecordedin2013mainlyrelatedtobuildings(EUR3.6million)andmachineryandequipment (EUR8.0million).Werecordedimpairmentchargesinbuildingsrelatingtotherebuildofcleanroomcabinsandin machineryandequipmentrelatingtoprototypes.Thetotalimpairmentchargesweredeterminedbasedonthedifference betweentheassets'valueinuse(beingEUR16.4million)andtheircarryingamount.

Theimpairmentchargesrecordedin2012mainlyrelatedtofurniture,fixtureandotherequipment(EUR1.7million).We recordedimpairmentchargeswithrespecttosoftwarewhichceasedtobeused.Thetotalimpairmentchargeswere determinedbasedonthedifferencebetweentheassets'valueinuse(beingEUR0.1million)andtheircarryingamount.

AsofDecember31,2013,thecarryingamountofmachineryandequipmentincludesanamountofEUR36.7millionwith respecttoevaluationandoperatingleasesystems(2012:EUR82.2million).

During2013,werecordeddepreciationchargesofEUR197.1million(2012:EUR179.3million)ofwhichwerecorded EUR144.1million(2012:EUR147.7million)incostofsales,EUR35.0million(2012EUR15.3million)inR&Dcostsand EUR18.0million(2012:EUR16.3million)inSG&Acosts.

SpecialPurposeEntity

Thecarryingamountofland,buildingsandconstructionsincludesanamountofEUR30.9million(2012:EUR32.4 million)relatingtoourheadquartersinVeldhoven,theNetherlands,whichisownedbyKoppelenwegIIB.V.,aSPE.

Asof2003,weareleasingtheVeldhovenheadquartersforaperiodof15years(startingin2003)fromanentity("lessor") thatwasincorporatedbytheSPEShareholders.Thelessor'sequityamountstoEUR1.9millionandhasnotchanged since2003.

TheSPEshareholderseachgrantedaloanofEUR11.6millionandafourthbankgrantedaloanofEUR12.3million (EUR47.1millionintotal)totheparentofthelessor.ASMLprovidedtheparentofthelessorwithasubordinatedloan ofEUR5.4millionandhasapurchaseoptionthatisexercisableeitherattheendoftheleasein2018,atapriceof EUR24.5million,orduringtheleaseatapriceequaltothebookvalueoftheassets.Thetotalassetsofthelessor entityamountedtoEUR54.5millionatinceptionofthelease.TheentityisdeterminedtobeaSPEbecausetheequity investorsdonothavesufficientequityatriskforthelegalentitytofinanceitsactivitieswithoutsufficientadditional subordinatedsupport.

TheprimarypurposeforwhichtheSPEwascreatedwastoprovideASMLwithuseofthebuildingfor15years,where ASMLdoesnotretainsubstantiallyalltherisksandrewardsfromchangesinvalueofthebuilding.Themainactivities oftheentityaretorent,re-marketandultimatelysellthebuildingthatisownedbytheSPE.Theeconomicperformance oftheSPEismostsignificantlyimpactedbytheabilityofthelessee(ASML)toexercisethepurchaseoptionatanytime duringtheleaseterm,andthuswecouldpotentiallybenefitfromincreasesinthefairvalueofthebuilding.

Whilethedebtholdershaveaninterest,andmayabsorblosses,andtheequityholdershaveaninterestandmayreceive benefits,theydonothavethepowertodirectactivitiesthatmostsignificantlyimpacttheentity'seconomicperformance andtherefore,cannotbetheprimarybeneficiary.Throughthepre-determinedpriceofthecalloptionASMLhasthe powerovertheSPE,thereforeonlyASMLmeetsboththepowerandlosses/benefitcriterionandconsolidatestheSPE.

10. Goodwill

Changesingoodwillaresummarizedasfollows:

2013	Year ended December 31
EUR	(in thousands)
	Cost
158,067 155,124	Balance,January1
2,073,311 6,038	Acquisitionthroughbusinesscombinations
(120,082) (3,095)	Effectofchangesinexchangerates
2,111,296 158,067	Balance,December31

GoodwillincreasedduetheacquisitionofCymer.Formoreinformationwithrespecttobusinesscombinations,seeNote 4.

Goodwillistestedforimpairmentannuallyattheendofthethirdquarterandwhenevereventsorchangesin circumstancesindicatethatthecarryingamountofthegoodwillmaynotberecoverable.

DuetotheacquisitionofCymerwehavere-evaluatedourCGUstructurein2013.Asaresult,weconcludedthatwe havetwoCGUs:CGUASMLexcludingCLSandCGUCLS.Allgoodwillacquiredinperiodsbefore2013wasallocated totheCGUASMLexcludingCLS.ThegoodwillresultingfromtheacquisitionofCymerwasallocatedbetweenthetwo CGUs.ThisresultedinagoodwillamountfortheCGUASMLexcludingCLSofEUR1,717.2million(includinggoodwill fromacquisitionsinperiodsbefore2013)andagoodwillamountfortheCGUCLSofEUR394.1million.

DuetothechangeinCGUstructure,wecouldnolongeruseourpreviousvaluationtechnique,whichwasbasedonone CGUandthereforewasequaltothemarketcapitalization.Instead,for2013,theRecoverableAmountsoftheCGUsare basedonthevalue-in-usecalculations.Thevalue-in-usecalculationsweredeterminedbydiscountingthefuturecash flowsgeneratedfromthecontinuinguseoftheunit.Cashflowsbeyondtheforecastedperiodhavebeenextrapolated usingasteady0percentgrowthrate.

Thepre-taxWACCusedtodeterminetheexpecteddiscountedfuturecashflowsis11.7percentforCGUASML excludingCLSand14.5percentforCGUCLS.

WithrespecttoCGUCLS,theoutcomeofasensitivityanalysisof200basispointsadversechangeinkeyassumptions (lowerASPorhigherpre-taxWACC,respectively)didnotresultinamateriallydifferentoutcomeoftheimpairmenttest.

Basedontherecoverabilitytestingduringtheannualgoodwillimpairmenttest,webelievethatthefairvalueofthe CGUsexceedstheircarryingvalue,thereforegoodwillwasnotimpairedasofDecember31,2013andDecember31, 2012.

11. Other Intangible Assets

Otherintangibleassetsconsistofbothfinite-livedotherintangibleassetsandotherintangibleassetsnotyetreadyfor use.ThemainpartoftheotherintangibleassetswasacquiredaspartoftheacquisitionsofBrionandCymer.Formore informationwithrespecttobusinesscombinations,seeNote4.

Finite-livedotherintangibleassetsconsistofthefollowing:

	Development expenditures	Brands	Intellectual property	Developed technology	Customer relationships	Other	Total
(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR	EUR

Cost Balance,January1,2012	824,621	-	47,250	49,469	8,733	2,231	932,304
Additions	293,624	-	7,658	-	-	-	301,282
Effectofchangesinexchangerates	(2,341)	-	-	(472)	-	-	(2,813)
Balance,December31,2012	1,115,904	-	54,908	48,997	8,733	2,231	1,230,773
Acquisitionsthroughbusinesscombinations	-	13,280	-	427,797	162,980	-	604,057
Additions	323,672	-	4,000	-	-	-	327,672
Effectofchangesinexchangerates	(5,996)	(726)	-	(23,380)	(8,907)	-	(39,009)

Balance, December 31, 2013	1,433,580	12,554	58,908	453,414	162,806	2,231	2,123,493
Accumulated amortization
Balance,January1,2012	566,704	-	47,228	43,004	5,277	2,103	664,316
Amortization	98,806	-	800	5,803	1,092	109	106,610
Effectofchangesinexchangerates	(591)	-	-	(490)	-	-	(1,081)
Balance,December31,2012	664,919	-	48,028	48,317	6,369	2,212	769,845
Amortization	92,149	382	2,135	18,694	6,332	19	119,711
Effectofchangesinexchangerates	(1,426)	(13)	-	(596)	(174)	-	(2,209)
Balance, December 31, 2013	755,642	369	50,163	66,415	12,527	2,231	887,347

Carrying amount
December31,2012	450,985	-	6,880	680	2,364	19	460,928
December31,2013	677,938	12,185	8,745	386,999	150,279	-	1,236,146

Developmentexpendituresmainlyrelatetothecapitalizedexpendituresregardingourcoreprograms:EUV,immersion andholisticlithographysolutions.

Theweighted-averageamortizationperiodforthetotalfinite-livedotherintangibleassetsacquired,asaresultofthe acquisitionofCymer,is15.2years.

Theweighted-averageamortizationperiodforthefinite-livedotherintangibleassetsacquired,asaresultofthe acquisitionofCymer,bymajorintangibleassetclassisasfollows:

(in years)	Brands	Developed technology	Customer relationships
Weighted-averageamortizationperiod	20.0	14.0	17.9

Acquiredfinite-livedotherintangibleassetsareamortizedonastraight-linebasisnottakingintoaccountanyresidual value.

Intellectualpropertyrelatestolicensesandpatentspurchasedfromthirdparties.During2013,weacquiredintellectual propertyfromthirdpartiesforanamountofEUR4.0million(2012:EUR7.7million).

Otherintangibleassetsnotyetreadyforuseconsistofthefollowing:

	In-process R&D
(in thousands)	EUR
Cost
Balance,January1,2012	-
Additions	-
Balance,December31,2012	-
Acquisitionsthroughbusinesscombinations	147,485
Additions	-
Effectofchangesinexchangerates	(8,059)
Carrying amount, December 31, 2013	139,426

AllacquiredotherintangibleassetsnotyetreadyforuseareallocatedtoCGUASMLexcludingCLS.

Brands,Developedtechnology,Customerrelationships,In-processR&DandOtherwereobtainedfromtheacquisitions ofCymer(2013)andBrion(2007).

During2013,werecordedamortizationchargesofEUR119.7million(2012:EUR106.6million)whichwererecorded incostofsalesforEUR118.2million(2012:EUR106.5million)andinR&DcostsforEUR1.5million(2012:EUR0.1 million).

During2013and2012wedidnotrecordanyimpairmentchargesforotherintangibleassets.

During2013,wecapitalizedborrowingcostsforEUR8.1million,usingacapitalizationrateof2.00percent(2012: capitalizedborrowingcostsEUR2.5million;capitalizationrateused5.75percent).

AsatDecember31,2013,theestimatedamortizationexpensesforotherintangibleassets,forthenextfiveyearsand thereafter,areasfollows:

(in thousands)	EUR
2014	171,105
2015	195,546
2016	207,027
2017	199,578
2018	143,512
Thereafter	458,804
Total	1,375,572

12. Financial Instruments by Category

Theaccountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelowandrepresentthefairvalue ofthesefinancialinstruments:

As of December 31, 2013	Derivatives at fair value through profit or loss	Derivatives for which hedge accounting is applied	Financial assets at fair value through profit or loss	Available for sale financial assets	Loans and receivables	Total
(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR
Assets as per statement of financial position date
Derivativefinancialinstruments	16,634	54,986	-	-	-	71,620
Accountsreceivable	-	-	-	-	878,321	878,321
Financereceivables	-	-	-	-	296,489	296,489
Othernon-currentandcurrentassets	-	-	-	-	104,188	104,188
Short-terminvestments	-	-	-	679,884	-	679,884
Cashandcashequivalents	-	-	535,000	-	1,795,694	2,330,694
Total	16,634	54,986	535,000	679,884	3,074,692	4,361,196

Total	Other financial liabilities	Derivatives for which hedge accounting is applied	Derivatives at fair value through profit or loss	As of December 31, 2013
EUR	EUR	EUR	EUR	(in thousands)
				Liabilities as per statement of financial position date
1,070,141	1,070,141	-	-	Long-termdebt1
11,652	-	9,637	2,015	Derivativefinancialinstruments
699,580	699,580	-	-	Accruedandotherliabilities
625,870	625,870	-	-	Accountspayable
2,407,243	2,395,591	9,637	2,015	Total

1 Long-termdebtincludesourEurobonds.BecausetheEurobondsserveashedgediteminafairvaluehedgerelationship,thecarryingamountisonly adjustedforfairvaluechangesasaresultofchangesinmarketinterestrates.Seenote20.

As of December 31, 2012	Derivatives at fair value through profit or loss	Derivatives for which hedge accounting is applied	Financial assets at fair value through profit or loss	Available for sale financial assets	Loans and receivables	Total
(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR
Assets as per statement of financial position date
Derivativefinancialinstruments	16,943	134,805	-	-	-	151,748
Accountsreceivable	-	-	-	-	605,288	605,288
Financereceivables	-	-	-	-	303,788	303,788
Othernon-currentandcurrentassets	-	-	-	-	68,638	68,638
Short-terminvestments	-	-	-	930,005	-	930,005
Cashandcashequivalents	-	-	385,420	-	1,382,176	1,767,596
Total	16,943	134,805	385,420	930,005	2,359,890	3,827,063

		Derivatives for
Total	Other financial liabilities	which hedge accounting is applied	Derivatives at fair value through profit or loss	As of December 31, 2012
EUR	EUR	EUR	EUR	(in thousands)
				Liabilities as per statement of financial position date
756,502	756,502	-	-	Long-termdebt1
10,893	-	10,468	425	Derivativefinancialinstruments
480,088	480,088	-	-	Accruedandotherliabilities
188,961	188,961	-	-	Accountspayable

1 Long-termdebtincludesourEurobond.BecausetheEurobondservesashedgediteminafairvaluehedgerelationship,thecarryingamountisonly adjustedforfairvaluechangesasaresultofchangesinmarketinterestrates.Seenote20.

SeeNote5forthefairvaluemeasurementhierarchy.

Thecarryingamountsoftheaccountsreceivable,financereceivablesandotherassetsapproximatetheirfairvalue.

Theamountsreflectedaboverepresentourmaximumexposuretocreditriskforfinancialassets.SeeNote6forcredit riskmanagementinrelationtoourfinancialassets.

13. Derivative Financial Instruments

Thederivativefinancialinstrumentsconsistofthefollowing:

		2013	2012
As of December 31	Assets	Liabilities	Assets	Liabilities
(in thousands)	EUR	EUR	EUR	EUR
Interestrateswaps-cashflowhedges	-	3,598	-	4,780
Interestrateswaps-fairvaluehedges	54,983	-	128,830	-
Forwardforeignexchangecontracts-cashflowhedges	3	6,039	5,975	5,688
Forwardforeignexchangecontracts-otherhedges(nohedgeaccounting)	16,634	2,015	16,943	425
Total	71,620	11,652	151,748	10,893
Lessnon-currentportion:
Interestrateswaps-cashflowhedges	-	2,608	-	4,032
Interestrateswaps-fairvaluehedges	30,777	-	101,651	-
Total non-current portion	30,777	2,608	101,651	4,032
Total current portion	40,843	9,044	50,097	6,861

Thefairvaluepartofahedgingderivativefinancialinstrumentsthathasaremainingtermof12monthsorlessafter StatementofFinancialPositiondateisclassifiedascurrentassetorliability.Whenthefairvaluepartofahedging derivativehasatermofmorethan12monthsafterStatementofFinancialPositiondate,itisclassifiedasnon-current assetorliability.

Foreign Exchange Contracts

ThenotionalprincipalamountsoftheoutstandingforwardforeignexchangecontractsinthemaincurrenciesU.S.dollar andJapaneseyenatDecember31,2013areUSD1,144.0millionandJPY2.2billion(2012:USD159.8millionandJPY 8.4billion).

Thehedgedhighlyprobableforecastedtransactionsdenominatedinforeigncurrencyareexpectedtooccuratvarious datesduringthecoming12months.GainsandlossesrecognizedinOCIonforwardforeignexchangecontractsasof December31,2013willberecognizedintheConsolidatedStatementofProfitorLossintheperiodorperiodsduring whichthehedgedforecastedtransactionsaffecttheConsolidatedStatementofProfitorLoss.

In2013,werecognizedanetamountofEUR2.3milliongain(2012:EUR8.7milliongain)intheConsolidatedStatement ofProfitorLossresultingfromeffectivecashflowhedgesforforecastedsalesandpurchasetransactionsthatoccurred intheyear.Furthermore,werecognizedanetamountofEUR62.5milliongainintheConsolidatedStatementofProfitor Lossresultingfromderivativefinancialinstrumentsmeasuredatfairvaluethroughprofitorloss(2012:EUR3.0million gain).

Interest Rate Swaps

ThenotionalprincipalamountsoftheoutstandinginterestrateswapcontractsasofDecember31,2013wereEUR 1,013.1million(2012:EUR624.9million).

14. Other Assets Othernon-currentassetsconsistofthefollowing:

2012 EUR	2013 EUR	As of December 31 (in thousands)
183,025	224,123	AdvancepaymentstoZeiss
12,080	20,174	Compensationplanassets1
5,445	5,445	SubordinatedloangrantedtolessorinrespectofVeldhovenheadquarters2
6,350	13,611	Other
206,900	263,353	Total other non-current assets

1 ForfurtherdetailsoncompensationplanassetsseeNote24.

2 ForfurtherdetailsonloangrantedtolessorinrespectofVeldhovenheadquartersseeNote9.

Zeissisoursolesupplierofmainopticalsystems(includinglenses)and,fromtimetotime,receivesnon-interestbearing advancepaymentsfromusthatsupportsZeiss'work-in-process,therebysecuringlensandopticalmoduledeliveriesto us.AmountsowedundertheseadvancepaymentsaresettledthroughfuturelensorEUVopticalmoduledeliveries.The non-currentpartofnon-interestbearingadvancepaymentstoZeissmainlyrelatestopaymentsmadetosupportZeiss' investmentsinASML'sEUVprogram.ThesepaymentsaresettledthroughfutureEUVopticalmoduledeliveries.

Othercurrentassetsconsistofthefollowing:

As of December 31	2013	2012
(in thousands)	EUR	EUR
AdvancepaymentstoZeiss	99,415	70,257
VAT	67,381	25,215
Prepaidexpenses	54,716	34,888
Otherreceivables	28,705	35,728
Total other current assets	250,217	166,088

Fromtimetotime,Zeissreceivesnon-interestbearingadvancepaymentsfromusthatassistinfinancingZeiss'work-inprocessandtherebysecurelensandopticalmoduledeliveriestous.Amountsowedundertheseadvancepaymentsare repaidorsettledthroughlensorEUVopticalmoduledeliveriesoverthefollowing12months.

Thecarryingamountofthenon-currentandcurrentotherassetsapproximatesthefairvalue.

15. Inventories

Inventoriesconsistofthefollowing:

As of December 31	2013	2012
(in thousands)	EUR	EUR
Rawmaterials	438,853	307,315
Work-in-process	1,549,119	1,074,042
Finishedproducts	666,648	742,979
Total inventories, gross	2,654,620	2,124,336
Provisionforobsolescenceand/orlowermarketvalue	(261,598)	(267,366)
Total inventories	2,393,022	1,856,970

Asummaryofactivityintheprovisionforobsolescenceand/orlowermarketvalueisasfollows:

As of December 31 (in thousands)	2013 EUR	2012 EUR
Balanceatbeginningofyear	(267,366)	(185,462)
Additionfortheyear	(164,852)	(138,962)
Effectofchangesinexchangerates	2,532	1,009
Utilizationoftheprovision	168,088	56,049
Balance at end of year	(261,598)	(267,366)

In2013,theadditionfortheyearisrecordedincostofsalesforanamountofEUR155.4millionandR&Dcostsfor anamountofEUR9.5million(2012:costofsalesEUR133.3millionandR&DcostsforanamountofEUR5.7million). The2013additionfortheyearmainlyrelatestoinventoryitemswhichwereceasedtobeusedduetotechnological developmentsanddesignchangeswhichresultedinobsolescenceofcertainparts.

Utilizationoftheprovisionmainlyrelatestothesaleandscrappingofobsoleteinventories.In2013,ASMLmadeno profitonthesaleofinventoriesthathadbeenpreviouslywrittendown(2012:EUR2.3million).

ThecostofinventoriesrecognizedascostsandincludedincostofsalesamountedtoEUR2,131.3million(2012:EUR 1,873.5million).

16. Finance Receivables

Financereceivablesconsistofthenetinvestmentinfinanceleases.Thefollowingtableliststhecomponentsofthe FinancereceivablesasofDecember31,2013and2012:

As of December 31	2013	2012
(in thousands)	EUR	EUR
Financereceivables,gross	302,977	309,616
Unearnedinterest	(6,488)	(5,828)
Finance receivables	296,489	303,788
Currentportionoffinancereceivables,gross	254,227	268,617
Currentportionofunearnedinterest	(3,755)	(3,450)
Non-current portion of finance receivables	46,017	38,621

TheslightdecreaseinfinancereceivablesasofDecember31,2013comparedtoDecember31,2012iscausedbya changeintheproductmix(lowernumberofhigh-endsystemtypesincludedattheendof2013comparedto2012).

AtDecember31,2013,theminimumleasepaymentsandpresentvalueofminimumleasepaymentsisasfollows:

	Minimum lease payments		Present value of minimum lease payments
As of December 31	2013	2012	2013	2012
(in thousands)	EUR	EUR	EUR	EUR
Notlaterthanoneyear	254,227	268,617	250,472	265,167
Laterthanoneyearandnotlaterthanfiveyears	48,750	40,999	46,017	38,621
	302,977	309,616	296,489	303,788
Less:unearnedinterest	(6,488)	(5,828)	n/a	n/a
Present value of minimum lease payments receivable	296,489	303,788	296,489	303,788

Weperformongoingcreditevaluationsonourcustomers'financialcondition.Weperiodicallyreviewwhetheraprovision forcreditlossesisneededbyconsideringfactorssuchashistoricalpaymentexperience,creditquality,theagingof thefinancereceivablesbalances,andcurrenteconomicconditionsthatmayaffectacustomer'sabilitytopay.In2013 and2012,wedidnotrecordanyexpectedcreditlossesfromfinancereceivables.AsofDecember31,2013thefinance receivableswereneitherpastduenorimpaired.

17. Accounts Receivable

Accountsreceivableconsistofthefollowing:

As of December 31	2013	2012
(in thousands)	EUR	EUR
Accountsreceivable,gross	880,169	607,359
Provisionfordoubtfulreceivables	(1,848)	(2,071)
Accounts receivable	878,321	605,288

TheincreaseinaccountsreceivableasofDecember31,2013comparedtoDecember31,2012ismainlycausedbyan increasednumberofsystemsshippedandrecognizedinsalesinthelastmonthsof2013comparedtothelastmonths of2012.

Thecarryingamountoftheaccountsreceivableapproximatesthefairvalue.Weperformongoingcreditevaluationson ourcustomers'financialcondition.Weperiodicallyreviewwhetheraprovisionforcreditlossesisneededbyconsidering factorssuchashistoricalpaymentexperience,creditquality,agingoftheaccountsreceivablebalances,andcurrent economicconditionsthatmayaffectacustomer'sabilitytopay.

Themainpartofthecarryingvalueofaccountsreceivableconsistsofeurobalances.

Accountsreceivableareimpairedandprovidedforonanindividualbasis.AsofDecember31,2013,accountsreceivable ofEUR91.4million(2012:EUR101.7million)werepastduebutnotimpaired.Thesebalancesarestillconsideredtobe recoverablebecausetheyrelatetocustomersforwhomthereisnorecenthistoryofdefaultandtherehasnotbeena significantchangeincreditquality.Thetablebelowshowstheageinganalysisoftheaccountsreceivablethatareupto threemonthspastdueandoverthreemonthspastdue.Accountsreceivablearepastduewhenthepaymenttermhas expired.

As of December 31	2013	2012
(in thousands)	EUR	EUR
Uptothreemonthspastdue	81,312	96,104
Overthreemonthspastdue	10,065	5,584
Total past due	91,377	101,688

Weprovidedextendedpaymenttermstosomeofourcustomers.Theaveragedaysoutstandingincreasedto58daysin 2013from47daysin2012.

Movementsintheallowancefordoubtfulreceivablesareasfollows:

Year ended December 31 (in thousands)	2013 EUR	2012 EUR
Balanceatbeginningofyear	(2,071)	(2,582)
Additionfortheyear1	(1,062)	(458)
Utilizationoftheprovision	1,285	969
Allowance for doubtful receivables	(1,848)	(2,071)

1 Theadditionfortheyearisrecordedincostofsales.

18. Cash and Cash Equivalents and Short-term Investments

CashandcashequivalentsatDecember31,2013includedepositswithhigh-ratedfinancialinstitutionsandtheDutch governmentofEUR853.5million(2012:EUR775.6million),investmentsinAAAm-ratedmoneymarketfundsthatinvest inhigh-rateddebtsecuritiesoffinancialinstitutionsandgovernmentsofEUR535.0million(2012:EUR385.4million) andinterest-bearingbankaccountsofEUR942.2million(2012:EUR606.6million).Ourcashandcashequivalentsare predominantlydenominatedineurosandpartlyinU.S.dollars.

Cashandcashequivalentshaveinsignificantinterestrateriskandremainingmaturitiesofthreemonthsorlessatthe dateofacquisition.ExceptforanamountofEUR4.7million,norestrictionsonusageofcashandcashequivalents exist.Thecarryingamountoftheseassetsapproximatestheirfairvalue.

Short-terminvestmentshaveinsignificantinterestrateriskandremainingmaturitieslongerthanthreemonthsbutless thanoneyearatthedateofacquisition.

Short-terminvestments(classifiedasAFSsecurities)consistofthefollowing:

As of December 31, 2013 (in thousands)	Cost basis	Unrealized Gains	Unrealized Losses	Recorded Basis
DutchTreasuryCertificates	304,884	-	-	304,884
Deposits	375,000	-	-	375,000
Total	679,884	-	-	679,884


As of December 31, 2012 (in thousands)	Cost basis	Unrealized Gains	Unrealized Losses	Recorded Basis
DutchTreasuryCertificates	279,988	-	-	279,988
Deposits	650,017	-	-	650,017

19. Equity

Share Capital

ASML'sauthorizedsharecapitalamountstoEUR126,000,000andisdividedinto:

700,000,000CumulativePreferenceShareswithanominalvalueofEUR0.09each;
699,999,000OrdinaryShareswithanominalvalueofEUR0.09each;and
9,000OrdinarySharesBwithanominalvalueofEUR0.01each.

Shares Issued as a Result of the Acquisition of Cymer

Synthetic Share Buyback

AttheEGMheldonSeptember7,2012,severalchangesintheArticlesofAssociationofASMLwereadopted,in connectionwiththeSyntheticShareBuybackeffectuatedinconnectionwiththeCCIP.

sharetoholdersofordinarysharesintowhichtheordinarysharesAwereconverted.Thefourthamendmentprovided fortheconsolidationoftheordinarysharesAthroughtheexchangeofeach100ordinarysharesfor77ordinaryshares, resultinginanincreaseofthenominalvalueperordinarysharefromEUR0.06toEUR0.09,wherebytheaggregate differencewasbookedattheexpenseofthesharepremiumreserve.Thefifthandlastamendmentprovidedforthe deletionoftheshareclassMforparticipantstotheCCIPandtheshareclassAfortheothershareholders.Theordinary sharesMandAwereconvertedthereafterintoordinaryshareswithoutaspecificlettermarkattachedtoit.These amendmentsinsubstanceconstituteaSyntheticShareBuybackinwhichweeffectivelyrepurchased93,411,216shares atanaveragepriceofEUR39.91foratotalamountofEUR3,728.3million.ThedifferenceofEUR125.6millionbetween thecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR3,853.9million relatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuyback.

Shares Issued in Customer Co-Investment Program

Ordinary Shares

Eachordinaryshareconsistsof900fractionalshares.Fractionalsharesentitletheholderthereoftoafractionaldividend butdonotentitletheholderthereoftovotingrights.Onlythosepersonswhoholdsharesdirectlyintheshareregister intheNetherlands,heldbyusatouraddressat5504DRVeldhoven,deRun6501,theNetherlands,orintheNewYork shareregister,heldbyJPMorganChaseBank,N.A.,P.O.Box64506,St.Paul,MN55164-0506,UnitedStates,can holdfractionalshares.PersonswhoholdordinarysharesthroughthedepositsystemundertheDutchSecuritiesBank GiroTransactionsAct(Wet giraal effectenverkeer;the"GiroAct")maintainedbytheDutchcentralsecuritiesdepository EuroclearNederlandorthroughtheDTCcannotholdfractionalshares.Anordinaryshareentitlestheholderthereofto castninevotesintheGeneralMeetingofShareholders.AtourAGMheldonApril24,2013,theBoardofManagement wasauthorizedfromApril24,2013throughOctober24,2014,subjecttotheapprovaloftheSupervisoryBoard,to issuesharesand/orrightstheretorepresentinguptoamaximumof5.0percentofourissuedsharecapitalatApril24, 2013,plusanadditional5.0percentofourissuedsharecapitalatApril24,2013thatmaybeissuedinconnectionwith mergers,acquisitionsand/or(strategic)alliances.

Ordinary Shares B

AspartofthemostrecentchangesinourArticlesofAssociation,adoptedattheEGMheldonSeptember7,2012, the9,000ordinarysharesBwithanominalvalueofEUR0.01wereintroduced.Apersonwhoholds(amultipleof)100 fractionalshares,mayexchangethosefractionalsharesforanordinaryshareB.EveryholderofanordinaryshareBis entitledtoone-ninth(1/9)ofadividend.EachordinaryshareBentitlestheholderthereoftocastonevoteattheGeneral Meeting.

Cumulative Preference Shares

In1998,wegrantedtothepreferenceshareFoundation,thePreferenceShareOption.Thisoptionwasamendedand extendedin2003and2007.AthirdamendmenttotheoptionagreementbetweentheFoundationandASMLbecame effectiveonJanuary1,2009,toclarifytheprocedurefortherepurchaseandcancellationofthepreferenceshareswhen issued.

PertheamendmentofourArticlesofAssociationonMay6,2011,thenominalvalueofthecumulativepreferenceshares wasincreasedtoEUR0.09.Thenumberofcumulativepreferencesharesincludedintheauthorizedsharecapitalwas decreasedto700,000,000.ThiswasdonetosimplifytheArticlesofAssociation,andtogiveeachsharetherighttocast onevoteintheGeneralMeetingofShareholders.

Other Reserves

ASMLisacompanyincorporatedunderDutchLaw.InaccordancewiththeDutchCivilCode,otherreservesconsistof legalreservesthathavetobeestablishedincertaincircumstances.Thelegalreservesconsistofthehedgingreserve, thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.Legalreservesarenotfor distributiontoourshareholders.Ifthecurrencytranslationreserveorthehedgingreservehasanegativebalance, distributionstoourshareholdersarerestrictedtotheextentofthenegativebalance.

(in thousands)	Hedging reserve EUR	Currency translation reserve EUR	Reserve for capitalized development expenditures EUR	Total EUR
Balance at January 1, 2012	2,984	(103,567)	259,622	159,039
Components of statement of comprehensive income:
Foreign currency translation:
Gain(Loss)ontranslationofforeignoperations	-	5,927	-	5,927
Financial instruments, net of taxes:
Gain(Loss)onderivativefinancialinstruments	214	-	-	214
Transferstonetincome	(7,761)	-	-	(7,761)
Development expenditures	-	-	192,482	192,482
Currency translation on development expenditures	-	1,119	(1,119)	-
Balance at December 31, 2012	(4,563)	(96,521)	450,985	349,901
Components of statement of comprehensive income:
Foreign currency translation:
Gain(Loss)ontranslationofforeignoperations	-	(122,000)	-	(122,000)
Financial instruments, net of taxes:
Gain(Loss)onderivativefinancialinstruments	(5,370)	-	-	(5,370)
Transferstonetincome	(2,276)	-	-	(2,276)
Development expenditures	-	-	231,523	231,523
Currency translation on development expenditures	-	4,570	(4,570)	-
Balance at December 31, 2013	(12,209)	(213,951)	677,938	451,778

Exchangeratedifferencesrelatingtothetranslationfromourforeignsubsidiariesintoeuroarerecognizedinthe currencytranslationreserve.Gainsandlossesonhedginginstrumentsthataredesignatedashedgesofnetinvestments inforeignoperationsareincludedinthecurrencytranslationreserve.

Hedgingreserverepresentshedginggainsandlossesontheeffectiveportionofcashflowhedges.

Appropriation of Net Income

Aspartofourfinancingpolicy,weaimtopayanannualdividendthatwillbestableorgrowingovertime.Annually,the BoardofManagementwill,uponpriorapprovalfromtheSupervisoryBoard,submitaproposaltotheAGMwithrespect totheamountofdividendtobedeclaredwithrespecttotheprioryear.Thedividendproposalinanygivenyearwillbe subjecttotheavailabilityofdistributableprofitsorretainedearningsandmaybeaffectedby,amongotherfactors,the BoardofManagement'sviewsonourpotentialfutureliquidityrequirements,includingforinvestmentsinproduction capacity,thefundingofourR&Dprogramsandforacquisitionopportunitiesthatmayarisefromtimetotime;andby futurechangesinapplicableincometaxandcorporatelaws.Accordingly,itmaybedecidedtoproposenottopaya dividendortopayalowerdividendwithrespecttoanyparticularyearinthefuture.

For2013,aproposaltodeclareadividendofEUR0.61perordinaryshareofEUR0.09nominalvaluewillbesubmitted totheAGMtobeheldonApril23,2014.

DividendsonordinarysharesarepayableoutofnetincomeorretainedearningsasshowninourFinancialStatements asadoptedbyourGeneralMeetingofShareholders,afterpaymentfirstof(accumulated)dividendsoutofnetincomeon anyissuedcumulativepreferenceshares.

Share Buyback Programs

Inadditiontodividendpayments,weintendtoreturncashtoourshareholdersonaregularbasisthroughshare buybacksorcapitalrepayment,subjecttoouractualandanticipatedlevelofliquidityrequirements,ourcurrentshare price,othermarketconditionsandotherrelevantfactors.

OnApril24,2013,theAGMauthorizedtherepurchaseofuptoamaximumoftwotimes10.0percentofourissuedshare capitalasofthedateofauthorizationthroughOctober24,2014.

Thefollowingtableprovidesasummaryofourrepurchasedsharesin2013:

Period	Total number of shares purchased	Average price paid per Share (EUR)	Total number of shares purchased as part of publicly announced plans or programs	Maximum value of shares that may yet be purchased under the program (EUR)
April18-30,2013	297,500	55.35	297,500	983,534,770
May2-31,2013	389,974	61.76	687,474	959,449,401
June1-30,2013	749,434	60.39	1,436,908	914,192,630
July1-31,2013	321,486	65.20	1,758,394	893,232,250
August1-31,2013	283,097	67.83	2,041,491	874,028,834
September1-30,2013	179,146	69.06	2,220,637	861,656,533
October3-31,2013	556,443	69.34	2,777,080	823,072,791
November1-30,2013	962,146	66.76	3,739,226	758,841,727
December1-31,2013	874,953	67.25	4,614,179	700,000,036
Total	4,614,179	65.02

20. Long-term Debt

Thelong-termdebtconsistsofthefollowing:

As of December 31	2013	2012
(in thousands)	EUR	EUR
EUR750million3.375percentseniornotesdue2023,carryingamount	748,083	-
EUR600million5.75percentseniornotesdue2017,carryingamount	269,418	707,107
Loanheadquarterbuilding1	30,936	32,366
Other	21,704	17,029
Long-term debt	1,070,141	756,502
Less:currentportionoflongtermdebt	4,385	3,610
Non-current portion of long term debt	1,065,756	752,892

1 ThisloanrelatestoourSPE,seeNote9.

OurobligationstomakeprincipalrepaymentsunderourEurobondsandotherborrowingarrangementsexcluding interestexpenseasofDecember31,2013,forthenextfiveyearsandthereafter,areasfollows:

EUR	(inthousands)
4,385	2014
4,252	2015
4,211	2016
242,361	2017
27,997	2018
757,467	Thereafter
1,040,673	Long-term debt
4,385	Less:currentportionoflong-termdebt
1,036,288	Non-current portion of long-term debt

Eurobond

ThefollowingtablesummarizesthecarryingamountofouroutstandingEurobonds,includingthefairvalueofinterest rateswapsusedtohedgethechangeinthefairvalueoftheEurobonds:

As of December 31 (in thousands)	2013 EUR	2012 EUR
Eurobond
Amortizedcostamount1	976,862	597,012
Fairvaluehedgeadjustment2	40,639	110,095
Total	1,017,501	707,107

1 Theamortizedcostamountisadjustedfortransactioncosts.

2 Thefairvalueoftheinterestrateswapsexcludesaccruedinterest.

InJune2007,wecompletedanofferingofourEUR600million5.75percentseniornotesdue2017,withinterestpayable annuallyonJune13.ThenotesareredeemableattheoptionofASML,inwholeorinpart,atanytimebypayingamake wholepremium,andunlesspreviouslyredeemed,willberedeemedat100percentoftheirprincipalamountonJune13, 2017.InSeptember2013,werepurchasedanominalamountofEUR361.8millionofthesenotesinatenderofferfora cashamountofEUR423.0millionincludingaccruedinterest.

InSeptember2013,wecompletedanofferingofourEUR750million3.375percentseniornotesdue2023,withinterest payableannuallyonSeptember19.ThenotesareredeemableattheoptionofASML,inwholeorinpart,atanytime bypayingamakewholepremium,andunlesspreviouslyredeemed,willberedeemedat100percentoftheirprincipal amountonSeptember19,2023.

TheEurobondsserveashedgeditemsinfairvaluehedgerelationshipsinwhichwehedgethevariabilityofchangesin thefairvalueofourEurobondsduetochangesinmarketinterestrateswithinterestrateswaps.Thefairvaluechanges oftheseinterestrateswapsarerecordedontheConsolidatedStatementofFinancialPositionunderderivativefinancial instruments(withinothercurrentassetsandothernon-currentassets)andthecarryingamountoftheEurobondsis adjustedforthesefairvaluechangesonly.FollowingtherepurchaseofpartofourEUR600million5.75percentsenior notesdue2017,thecorrespondingpartoftheinterestrateswapshasbeenterminated,simultaneously.

ThefollowingtablesummarizesamongstotherstheestimatedfairvalueoftheEurobonds:

As of December 31	2013	2012
(in thousands)	EUR	EUR
Principalamount	988,153	600,000
Carryingamount	1,017,501	707,107
Fairvalue1	1,028,238	700,644

1 Source:BloombergFinanceLP

ThefairvalueofourEurobondsisestimatedbasedonquotedmarketpricesasofDecember31,2013.Duetochanges inmarketinterestratesandcreditspreadssincetheissueofourEurobondswhichcarryafixedcouponinterestrate,the fairvaluedeviatesfromtheprincipalamount.

21. Lines of Credit

OuravailablecreditfacilitiesamounttoEUR700.0millionasofDecember31,2013andEUR500.0millionasof December31,2012.Noamountswereoutstandingunderthesecreditfacilitiesattheendof2013and2012.

TheamountatDecember31,2013consistsofoneEUR700millioncommittedrevolvingcreditfacilityfromagroupof banksthatwillmaturein2018.ThiscreditfacilityreplacedourEUR500millioncommittedrevolvingcreditfacilitythat wasduetoexpireinMay2015andthatwe,inlinewithourfinancingpolicy,cancelledinMarch2013.Thenewcredit facilitycontainsasimilarrestrictivecovenantasthecreditfacilityitreplacedandthatrequiresustomaintainaminimum long-termcommittedcapitaltonettotalassetsratioof40.0percentcalculatedinaccordancewithcontractuallyagreed definitions.Long-termcommittedcapitalcontains,amongothers,equityanddebtmaturingatleastoneyearafterthe maturitydateofthecreditfacility,whilenettotalassetsmainlycomprisesoftotalassetsminuscash,cashequivalents andcertainshort-terminvestments.Furthermore,adjustmentsaremadefore.g.intangiblesandoperatingleases.Asof December31,2013thisratiowas89.6percent.Therefore,weareincompliancewiththecovenantattheendof2013. OutstandingamountsunderthiscreditfacilitywillbearinterestatEURIBORorLIBORplusamarginthatdependsonour liquidityposition.

TheamountatDecember31,2012,consistedofoneEUR500millioncommittedrevolvingcreditfacilityfromagroupof banksthatwecancelledinMarch2013.Thecreditfacilitycontainedarestrictivecovenantthatrequiredustomaintaina minimumcommittedcapitaltonettotalassetsratioof40.0percentcalculatedinaccordancewithcontractuallyagreed definitions.AsofDecember31,2012,thisratiowas85.8percent.Therefore,wewereincompliancewiththecovenantat theendof2012.

22. Provisions

Themovementintheprovisionforleasecontractterminationcostsisasfollows:

	2013	2012
(in thousands)	EUR	EUR
Balance,January1	10,254	12,338
Utilizationoftheprovision	(2,790)	(2,545)
Releaseoftheprovision	(1,011)	-
Unwindingofdiscount	391	628
Effectofexchangerates	3	(167)
Provision for lease contract termination costs	6,847	10,254
Less:currentportionofprovisionforleasecontractterminationcosts	2,227	2,280
Non-current portion of provision for lease contract termination costs	4,620	7,974

Theprovisionforleasecontractterminationcostsrelatestoanoperatingleasecontractforabuildingforwhichno economicbenefitsareexpected.Theprovisionforleasecontractterminationcostsisexpectedtobefullyutilizedby 2017.

23. Accrued and Other Liabilities

Accruedandotherliabilitiesconsistofthefollowing:

As of December 31 2013		2012
(in thousands) EUR		EUR
Deferredrevenue 939,358		739,136
Coststobepaid 440,010		278,066
821,959	Downpaymentsfromcustomers	1,033,768
Personnelrelateditems 247,246		200,670
Standardwarrantyreserve 27,475		21,626
Other 12,324		1,352
2,488,372	Total accrued and other liabilities	2,274,618
280,534	Less:non-currentportionofaccruedandotherliabilities1	401,109
2,207,838	Current portion of accrued and other liabilities	1,873,509

1 Themainpartofthenon-currentportionofaccruedandotherliabilitiesrelatestodownpaymentsreceivedfromcustomersregardingfuture shipmentsofEUVsystemsanddeferralswithrespecttoservices.

Theincreaseinaccruedandotherliabilitiesmainlyrelatestotheincreaseindeferredrevenueandcoststobepaid, partlyoffsetbythedecreaseindownpaymentsfromcustomers.

DeferredrevenueasofDecember31,2013mainlyconsistsofawardcreditsregardingfreeordiscountedproducts orservicesaspartofvolumepurchaseagreementsamountingtoEUR660.1million(2012:EUR581.5million)and prepaidextendedandenhanced(optic)warrantycontractsamountingtoEUR261.2million(2012:EUR242.2million).In addition,thedeferredrevenuealsoincludesdeferralswithrespecttoourfirstthird-generationEUVsystem,NXE:3300B.

CoststobepaidincludeanamountofEUR171.2millionrelatingtotheexpectedlossestoupgradethefirst11EUV sourcesinthefield,whichwasassumedbyASMLasaresultoftheacquisitionofCymer.Inaddition,coststobepaid includeaccruedcostforunbilledservicesprovidedbysuppliersincludingcontractedlabor,outsourcedservicesand consultancy.

Wereceivedownpaymentsfromcustomerspriortoshipmentofsystemsincludedinourcurrentproductportfolioor systemscurrentlyunderdevelopment.

Personnelrelateditemsmainlyconsistofaccruedmanagementbonuses,accruedprofitsharing,accruedvacationdays, accruedvacationallowance,accruedwagetax,socialsecuritiesandaccruedpensionpremiums.

Changesinstandardwarrantyreservefortheyears2013and2012areasfollows:

	2013	2012
(in thousands)	EUR	EUR
Balance,January1	21,626	43,273
Acquisitionthroughbusinesscombinations	2,978	-
Additionsfortheyear	37,124	35,735
Utilizationofthereserve	(19,924)	(33,746)
Releaseofthereserve	(13,076)	(22,733)
Effectofexchangerates	(1,253)	(903)
Standard warranty reserve	27,475	21,626

Thereleaseofthereserveisduetoachangeinaccountingestimatebasedonlowerthanexpectedhistoricalwarranty expensesasaresultofanimprovedlearning-curveconcerningoursystems.Thereleasehasbeenincludedincostof sales.

24. Employee Benefits

OurbonusexpensesfortheBoardofManagement(includingMr.NicklandMr.Meurice)andseniormanagementwere asfollows:

Year ended December 31	2013	2012
(in thousands)	EUR	EUR
Bonusexpenses	32,698

BonusexpensesincludeanamountofEUR2.1million(2012:EUR1.8million)inrelationtotheSTIcashbonusforour BoardofManagement,Mr.NicklandMr.Meurice(werefertoNote31).

Wehaveaperformancerelatedbonusplanforseniormanagement,whoarenotmembersoftheBoardofManagement. Underthisplan,thebonusamountisdependentonactualperformanceagainstcorporate,departmentalandpersonal targets.WithinASMLthebonusformembersofseniormanagementcanrangebetween0.0percentand40.0percent, or0.0percentand70.0percent,oftheirannualsalaries,dependingupontheirseniority.Theperformancetargetsareset foreachhalfyear.Thebonusoverthefirsthalfof2013waspaidinthesecondhalfof2013.Thebonusoverthesecond halfof2013isaccruedforintheConsolidatedStatementofFinancialPositionasofDecember31,2013andisexpected tobepaidinthefirstquarterof2014.AsaresultoftheacquisitionofCymer,weassumedallexistingbonusplans eligibletoCymeremployees.WithinCymerbonusescanrangebetween0.0percentand150.0percent,or0.0percent and200.0percentoftherelevantemployee'sannualsalary,dependinguponsuchemployee'sseniorityandrespective division.Theperformancetargetsaresetforawholeyear.Thebonusover2013isaccruedforintheConsolidated StatementofFinancialPositionasofDecember31,2013andisexpectedtobepaidinthefirstquarterof2014.

Year ended December 31	2013	2012
(in thousands)	EUR	EUR
Bonusexpenses	30,631	14,588

Theincreaseinbonuscostsin2013comparedto2012ismainlyattributabletotheacquisitionofCymer.

Profit-sharing Plan

Wehaveaprofit-sharingplancoveringallEuropeanandUSnon-salesemployeeswhoarenotmembersoftheBoard ofManagementorseniormanagement.Undertheplan,eligibleemployeesreceiveanannualprofit-sharing,basedona percentageofnetincomerelativetosalesrangingfrom0.0to20.0percentoftheirannualsalary.Theprofitsharingfor theyears2013and2012was14.0percentorEUR55.9millionand18.0percentorEUR64.5million,respectively.Our profitisalsooneofthecriteriafortheindividualvariablepayprogramsforemployeesinAsiaandemployeeseligibleto thesalesrewardplanwhichamounttoEUR25.8millionfor2013(includingEUR2.3millionforthesalesrewardplan) andEUR24.4millionfor2012.

Share-based Compensation

Wehaveadoptedvariousshare(option)plansforouremployees.Eachyear,theBoardofManagementdetermines, bycategoryofourpersonnel,thetotalavailablenumberofstockoptionsandmaximumnumberofsharesthatcanbe grantedinthatyear.ThedeterminationissubjecttotheapprovalofourSupervisoryBoard.FormembersoftheBoard ofManagement,wehaveseparateshare-basedpaymentplans,fordetailsonserviceandvestingconditionsseebelow. Ourcurrentshare-basedpaymentplansdonotprovidecashsettlementofoptionsandshares.

Thetotalgrossamountofrecognizedcompensationexpensesassociatedwithshare-basedpayments(including share-basedpaymentstotheBoardofManagement)wasEUR47.4millionin2013andEUR18.7millionin2012. Compensationexpensesin2013includedEUR20.2millionrelatingtoincurredpost-acquisitionexpensesforsharebasedcompensationawardsexchangedaspartoftheacquisitionofCymer,seeNote4.Detailsconcerningtheshare (option)planswhichhavebeenadoptedbyASMLaspartoftheCymeracquisitionareincludedinthetablesbelow.The taxbenefitrecognizedrelatedtotherecognizedshare-basedcompensationcostsamountstoEUR10.7millionin2013 andEUR0.9millionin2012.

Totalcompensationcostsrelatedtonon-vestedawardstoberecognizedinfutureperiodsamounttoEUR62.4million asperDecember31,2013(2012:EUR30.4million).Theweightedaverageperiodoverwhichthesecostsareexpected toberecognizediscalculatedat1.7years(2012:2.0years).

Option Plans

Optionsgrantedunderourstockoptionplanshavefixedexercisepricesequaltotheclosingpriceofourshareslisted atNYSEEuronextAmsterdamorourshareslistedatNASDAQontheapplicablegrant-dates.Grantedstockoptions generallyvestoverathree-yearperiodwithanyunexercisedstockoptionsexpiringtenyearsafterthegrant-date.

Wehavefivedifferentstockoptionplans:

Employeeplan
Optionpurchaseplan
Brionstockoptionplan
Cymerstockoptionplan
Seniormanagementplan(alreadyvested)

TheOptionpurchaseplanhasnoserviceandvestingconditions.Theotherplanstypicallyhaveathreetofouryear servicecondition.ThefairvalueofthestockoptionsisdeterminedusingaBlack-Scholesoptionvaluationmodel.

TheBlack-Scholesoptionvaluationofourstockoptionsisbasedonthefollowingassumptions:

2012	2013	Year ended December 31
40.3	62.0	Weightedaverageshareprice(inEUR)
25.6	27.0	Volatility(inpercentage)
5.0	5.6	Expectedlife(inyears)
2.1	0.8	Riskfreeinterestrate
1.45	2.00	Expecteddividendyield(inEUR)
-	-	Forfeiturerate1

1 AsofyearendforeachofthetwoyearsendedDecember31,forfeituresareestimatedtobenil.

Whenestablishingtheexpectedlifeassumptionweannuallytakeintoaccountthecontractualtermsofthestock optionsaswellashistoricalemployeeexercisebehavior.

Otherdetailswithrespecttostockoptionsaresetoutinthefollowingtable:

	EUR-denominated		USD-denominated
Year ended December 31	2013	2012	2013	2012
Weightedaveragefairvalueofstockoptionsgranted	14.22	8.97	21.74	11.87
Weightedaveragesharepriceattheexercisedateofstockoptions	59.53	40.45	77.25	50.88
Aggregateintrinsicvalueofstockoptionsexercised(inthousands)	15,924	71,331	11,086	12,684
Aggregateremainingcontractualtermofcurrentlyexercisableoptions(years)	3.09	3.59	3.12	3.17
Aggregateintrinsicvalueofexercisablestockoptions(inthousands)	37,441	34,438	22,781	21,882
Aggregateintrinsicvalueofoutstandingstockoptions(inthousands)	38,718	35,671	25,369	22,433

ThenumberandweightedaverageexercisepricesofstockoptionsasofDecember31,2013,andchangesduringthe yearthenendedarepresentedbelow:

	EUR-denominated			USD-denominated
	Number of options	Weighted average exercise price per ordinary share (EUR)	Number of options	Weighted average exercise price per ordinary share (USD)
Outstanding,January1,2013	1,128,162	16.38	494,836	19.06
Granted	28,308	58.35	101,4001	60.86
Exercised	(358,581)	15.12	(178,374)	14.86
Forfeited	(4,234)	20.27	(7,311)	23.81
Expired	(11,353)	10.11	(3,916)	11.33
Outstanding, December 31, 2013	782,302	18.55	406,635	31.31
Exercisable,December31,2013	731,452	16.85	325,026	23.61

1 USD-denominatedgrantsinclude79,153optionswithaweightedaverageexercisepriceofUSD53.07whichhavebeenassumedbyASMLaspartof theacquisitionofCymer.

Detailswithrespecttothestockoptionsoutstandingaresetoutinthefollowingtable:

	EUR-denominated			USD-denominated
Range of exercise prices (EUR)	Number of outstanding options at December 31, 2013	Weighted average remaining contractual life of outstanding options (years)	Range of exercise prices (USD)	Number of outstanding options at December 31, 2013	Weighted average remaining contractual life of outstanding options (years)
0-10	-	-	0-10	20,560	1.97
10-15	380,681	2.36	10-15	133,117	0.90
15-20	185,086	3.11	15-20	4,311	4.80
20-25	141,192	4.05	20-25	80,019	3.92
25-40	24,843	7.76	25-40	93,456	5.72
40-50	25,256	8.80	40-50	1,468	7.70
50-60	6,156	9.17	50-60	9,540	8.71
60-70	19,088	9.76	60-70	1,383	9.07
70-80	-	-	70-80	43,993	9.14
80-90	-	-	80-90	18,788	9.78
Total	782,302	3.46	Total	406,635	4.23

In2013and2012,onlyrepurchasedshareswereusedtosatisfytheoptionrightsuponexercise.Formoreinformation withrespecttorepurchasedshareswerefertoNote19.

Share Plans

Sharesgrantedunderourshareplansincludeathreetofouryearserviceperiodandforsomeplansperformance conditions.ThefairvalueofsharesisdeterminedbasedontheclosingtradingpriceofourshareslistedatNYSE EuronextAmsterdamonthegrantdate.

Wehaveeightdifferentshareplans:

Employeeplan
Cymeremployeeplan
Sharepurchaseplan
Newhireperformanceshareplan
Brionperformanceshareplan
Cymerperformanceshareplan
Seniormanagementperformanceshareplan
Boardofmanagementperformanceshareplan(seeNote31)

TheSharepurchaseplanhasnoserviceandvestingconditions.Theemployeeplansonlyhaveserviceconditions.The otherplanshaveserviceconditionswhicharesimilarandhavevestingconditionswhicharebasedonperformance.

Detailswithrespecttosharesaresetoutinthefollowingtable:

	EUR-denominated		USD-denominated
Year ended December 31	2013	2012	2013	2012
Totalfairvalueatvestingdateofsharesvestedduringtheyear(inthousands) Weightedaveragefairvalueofsharesgranted	38,280 55.83	16,179 36.15	51,798 83.58	5,392 47.71

AsummaryofthestatusofconditionallyoutstandingsharesasofDecember31,2013,andchangesduringtheyear endedDecember31,2013,ispresentedbelow:

	EUR-denominated			USD-denominated
					Weighted
					average
		Weighted average			fair value at
		fair value at grant	Number of		grant date
	Number of shares	date (EUR)	shares		(USD)
Conditional shares outstanding at January 1, 2013	1,693,610	29.92	249,094		40.71
Granted	548,786	55.83	1,852,320	1	83.58
Vested/Issued	(635,753)	26.94	(628,802)		76.12
Forfeited	(62,311)	33.40	(92,292)		78.94
Conditional shares outstanding at December 31, 2013	1,544,332	40.21	1,380,320		79.55

1 USD-denominatedgrantsinclude1,634,990shareswithaweightedaveragefairvalueofUSD83.94whichhavebeenassumedbyASMLaspartof theacquisitionofCymer.

Other Plans

Employee Purchase Plan

Everyquarter,weofferourworldwidepayrollemployeestheopportunitytobuyoursharesorourstockoptionsagainst fairvalueoutoftheirnetsalary.Thefairvalueforsharesisdeterminedbasedontheclosingpriceofourshareslistedat NYSEEuronextAmsterdamonthegrant-date.ThefairvalueofthestockoptionsisdeterminedusingaBlack-Scholes optionvaluationmodel.FortheassumptionsonwhichtheBlack-Scholesoptionvaluationmodelisused,seethe disclosureaboveunderthecaption"OptionPlans".Themaximumnetamountforwhichemployeescanparticipatein theplanamountsto10.0percentofgrossbasesalary.Whenemployeesretainthesharesand/orstockoptionsfora minimumof12months,wewillpayouta20.0percentcashbonusonthenetinvestedamount.

Deferred Compensation Plans

InJuly2002,weadoptedanon-qualifieddeferredcompensationplanforourUnitedStatesemployeesthatallows aselectgroupofmanagementorhighlycompensatedemployeestodeferaportionoftheirsalary,bonus,and commissions.Theplanallowsustocreditadditionalamountstotheparticipants'accountbalances.Theparticipants dividetheirfundsamongtheinvestmentsavailableintheplan.Participantselecttoreceivetheirfundsinfutureperiods aftertheearlieroftheiremploymentterminationortheirwithdrawalelection,atleastthreeyearsafterdeferral.There wereminorexpensesrelatingtothisplanin2013and2012.Cymerhasasimilarnon-qualifieddeferredcompensation planforaselectedgroupofmanagementlevelemployeesintheUnitedStatesinwhichtheemployeemayelecttodefer receiptofcurrentcompensationfromusinordertoprovideretirementandotherbenefitsonbehalfofsuchemployee backedbyCymerownedlifeinsurancepolicies.

AsofDecember31,2013,and2012,ourliabilityunderdeferredcompensationplanswasEUR23.5millionandEUR11.8 million,respectively.

Pension Plans

Wemaintainvariouspensionplanscoveringsubstantiallyallofouremployees.OuremployeesintheNetherlands, 5,525FTEs,participateinamulti-employerunionplan(PME)determinedinaccordancewiththecollectivebargaining agreementseffectivefortheindustryinwhichweoperate.Thiscollectivebargainingagreementhasnoexpiration date.Thismulti-employerunionplancoversapproximately1,296companiesandapproximately146,000contributing members.Ourcontributiontothemulti-employerunionplanislessthan5.0percentofthetotalcontributiontotheplan aspertheannualreportfortheyearendedDecember31,2012.Theplanmonitorsitsrisksonaglobalbasis,notby companyoremployee,andissubjecttoregulationbyDutchgovernmentalauthorities.Bylaw(theDutchPensionAct),a multi-employerunionplanmustbemonitoredagainstspecificcriteria,includingthecoverageratiooftheplan'sassets toitsobligations.Thiscoverageratiomustexceed104.3percentforthetotalplan.Everycompanyparticipatingina Dutchmulti-employerunionplancontributesapremiumcalculatedasapercentageofitstotalpensionablesalaries, witheachcompanysubjecttothesamepercentagecontributionrate.Thepremiumcanfluctuateyearlybasedonthe coverageratioofthemulti-employerunionplan.Thepensionrightsofeachemployeearebasedupontheemployee's averagesalaryduringemployment.

In2009,becauseofalowcoverageratio,PMEpreparedandexecutedaso-called"RecoveryPlan"whichwas approvedbyDeNederlandscheBank.Underthetermsoftherecoveryplan,whichterminatedattheendof2013,a minimalcoveragepercentageof104.3percentwasrequired.Thecoveragepercentageofthemulti-employerunion planincreasedto103.4percentasofDecember31,2013(December31,2012:93.9percent),whichisbelowthe requirementsassetoutintherecoveryplan.Howeverwehavenoobligationwhatsoevertopayoffanydeficitsthe pensionfundmayincur,norhaveweanyclaimtoanypotentialsurpluses.Thecoveragepercentageiscalculatedby dividingthefundscapitalbythetotalsumofpensionliabilitiesandisbasedonactualmarketinterest.In2014the pensionpremiumpercentagewillincreasefrom24.0to24.1.

Ournetperiodicpensioncostforthismulti-employerunionplanforanyperiodistheamountoftherequiredcontribution forthatperiod.

Wealsoparticipateinseveraldefinedcontributionpensionplans,withourexpensesfortheseplansequalingthe contributionsmadeintherelevantperiod.

OurpensionandretirementexpensesforallemployeesforthethreeyearsendedDecember31,2013and2012were:

Year ended December 31 (in thousands)	2013 EUR	2012 EUR
Pensionplanbasedonmulti-employerunionplan	40,476	34,525
Pensionplansbasedondefinedcontribution	19,799	15,773
Pension and retirement expenses	60,275	50,298

25. Commitments, Contingencies and Guarantees

Wehavevariouscontractualobligations,someofwhicharerequiredtoberecordedasliabilitiesinourFinancial Statements,includinglong-andshort-termdebt.Othercontractualobligations,namelyoperatingleasecommitments, purchaseobligationsandguarantees,aregenerallynotrequiredtoberecognizedasliabilitiesonourConsolidated StatementofFinancialPositionbutarerequiredtobedisclosed.

Payments due by period (in thousands)	Total EUR	1 year EUR	2 year EUR	3 year EUR	4 year EUR	5 year EUR	After 5 years EUR
Long-TermDebtObligations,includinginterestexpense1	1,341,380	45,079	44,952	44,907	275,640	54,155	876,647
OperatingLeaseObligations	74,946	30,293	21,543	14,081	4,803	2,539	1,687
PurchaseObligations 2,012,913		1,894,455	85,548	16,223	13,772	2,382	533
Liabilityforuncertaintaxpositions,includinginterest expense	74,069	580	945	7,680	26,105	785	37,974
Total Contractual Obligations 3,503,308		1,970,407	152,988	82,891	320,320	59,861	916,841

1 SeeNote20fortheamountsexcludinginterestexpense.

Long-termdebtobligationsmainlyrelatetointerestpaymentsandtheprincipalamountofourEurobonds.SeeNote20.

Operatingleaseobligationsincludeleasesofequipmentandfacilities.Leasepaymentsrecognizedasanexpensewere EUR42.0millionandEUR41.6millionfortheyearsendedDecember31,2013and2012,respectively.

Severaloperatingleasesforourbuildingscontainpurchaseoptions,exercisableattheendofthelease,andinsome cases,duringthetermofthelease.TheamountstobepaidifASMLwouldexercisethesepurchaseoptionsattheend oftheleaseasofDecember31,2013canbesummarizedasfollows:

Purchase options due by period	Total	1 year	2 year	3 year	4 year	5 year	After 5 years
(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR	EUR
Purchaseoptions	13,983	-	-	13,983	-	-	-

Purchaseobligationsincludepurchasecommitmentswithsuppliersintheordinarycourseofbusiness.ASMLexpects thatitwillhonorthesepurchaseobligationstofulfillfuturesales,inlinewiththetimingofthosefuturesales.The generaltermsandconditionsoftheagreementsrelatingtothemajorpartofourpurchasecommitmentsasofDecember 31,2013containclausesthatenablesustodelayorcanceldeliveryoforderedgoodsandservicesuptothedates specifiedinthecorrespondingpurchasecontracts.Thesetermsandconditionsthatwehaveagreedwithoursupply chainpartnersgivesusadditionalflexibilitytoadaptourpurchaseobligationstoourrequirementsinlightoftheinherent cyclicalityofthesemiconductorequipmentindustryinwhichweoperate.Weestablishaprovisionforcancellationfees whenitisprobablethattheliabilityhasbeenincurredandtheamountofcancellationfeesisreasonablyestimable.

ASMLHoldingN.V.formsataxunitytogetherwithcertainofitsDutchsubsidiaries,forpurposesofDutchtaxlawsand areassuchjointlyandseverallyliableforthetaxdebtsoftheunity:ThefiscalunitycomprisesasofDecember31,2013 ofASMLHoldingN.V.,ASMLNetherlandsB.V.andASMLSystemsB.V.

26. Legal Contingencies

ASMLispartytovariouslegalproceedingsgenerallyincidentaltoourbusiness.ASMLalsofacesexposuresfrom otheractualorpotentialclaimsandlegalproceedings.Inaddition,ASML'scustomersmaybesubjecttoclaimsof infringementfromthirdpartiesallegingthattheASMLequipmentusedbythosecustomersinthemanufactureof semiconductorproducts,and/orthemethodsrelatingtouseoftheASMLequipment,infringesoneormorepatents issuedtothosethirdparties.Iftheseclaimsweresuccessful,ASMLcouldberequiredtoindemnifysuchcustomersfor someorallofthelossesincurredordamagesassessedagainstthemasaresultofthatinfringement.

WeaccrueforlegalcostsrelatedtolitigationinourConsolidatedStatementofProfitorLossatthetimewhenthe relatedlegalservicesareactuallyprovidedtoASML.In2013,EUR3.2millionestimatedlosseswererecordedasa chargetoourConsolidatedStatementofProfitorLoss(2012:noestimatedlosseswererecorded).

Fromlate2001through2004,ASMLwaspartytoaseriesofcivillitigationsandadministrativeproceedingsinwhich NikonallegedASML'sinfringementofNikonpatentsrelatingtolithography.ASMLinturnfiledclaimsagainstNikon. PursuanttoagreementsexecutedonDecember10,2004,ASMLandNikonagreedtosettleallpendingworldwide patentlitigationbetweenthecompanies.Thesettlementincludedanexchangeofreleases,apatentCross-License agreementrelatedtolithographyequipmentusedtomanufacturesemiconductordevicesandpaymentstoNikonby ASML.AsofJanuary1,2015,thepartiesmaybringsuitforinfringementofpatentssubjecttotheNikonCross-License Agreement,includinganyinfringementthatoccurredduringtheCross-LicenseTransitionPeriod.Damagesresulting fromclaimsforpatentinfringementoccurringduringtheCross-LicenseTransitionPeriodarelimitedtothreepercentof thenetsalespriceofproductsfoundtoinfringevalidandenforceablepatents.

27. Income Taxes

Thecomponentsofprovisionforincometaxesareasfollows:

Year ended December 31 (in thousands)	2013 EUR	2012 EUR
Currenttax	(69,974)	(82,105)
Deferredtax	7,505	46,543
Total	(62,469)	(35,562)

TheDutchstatutorytaxratewas25.0percentin2013and2012.Taxamountsinotherjurisdictionsarecalculatedatthe ratesprevailingintherelevantjurisdictions.

Thereconciliationoftheprovisionforincometaxesisasfollows:

Year ended December 31	2013		2012
(in thousands)	EUR	%	EUR	%
Income before income taxes	1,256,313	100.0	1,337,909	100.0
IncometaxprovisionbasedonASML'sdomestictaxrate	(314,078)	25.0	(334,477)	25.0
Effectsoftaxratesinforeignjurisdictions	15,315	(1.2)	6,576	(0.5)
Adjustmentsinrespectoftaxexemptincome	29,430	(2.3)	23,532	(1.8)
Adjustmentsinrespectoftaxincentives	144,225	(11.5)	165,649	(12.4)
Adjustmentsinrespectofprioryears'currenttaxes	5,155	(0.4)	18,275	(1.4)
Adjustmentsinrespectofprioryears'deferredtaxes	16,164	(1.3)	-	0.0
Movementsintheliabilityforuncertaintaxpositions	(3,484)	0.3	92,366	(6.9)
Adjustmentsinrespectofnon-taxablepre-existingrelationship	67,730	(5.4)	-	0.0
Othercreditsandnon-taxableitems	(22,926)	1.8	(7,483)	0.7
Provision for income taxes	(62,469)	5.0	(35,562)	2.7

Income Tax Provision Based on ASML's Domestic Rate

TheprovisionforincometaxesbasedonASML'sdomesticrateisbasedontheDutchstatutoryincometaxrate.It reflectstheprovisionforincometaxesthatwouldhavebeenapplicableassumingthatallofourincomeistaxable againsttheDutchstatutorytaxrateandtherewerenopermanentdifferencesbetweentaxablebaseandfinancialresults andnoDutchtaxincentivesareapplied.

Effects of Tax Rates in Foreign Jurisdictions

AportionofASML'sresultsarerealizedincountriesotherthantheNetherlandswheredifferenttaxratesareapplicable. Theincreaseoftheeffectsoftaxratesinforeignjurisdictionscomparedto2012ismainlyexplainedbyashiftinthemix oftaxableincomeacrosstaxjurisdictionsasaresultoftheacquisitionofCymerasperMay30,2013.

Adjustments in Respect of Tax Exempt Income

Incertainjurisdictionspartoftheincomegeneratedistaxexempted.

Adjustments in Respect of Tax Incentives

Adjustmentsinrespectoftaxincentivesrelatetoreducedtaxratesinseveraljurisdictions,mainlyconsistingofthe Dutch"InnovationBox"andtheRDA.TheInnovationboxisafacilityunderDutchcorporatetaxlawpursuanttowhich incomeassociatedwithR&Dispartiallyexemptedfromtaxation.TheRDAisataxincentiveinwhichanadditionaltax depreciationisallowedfortangibleassetsutilizedforresearchanddevelopmentpurposes.

Adjustments in Respect of Prior Years' Current Taxes

In2012,werecognizedataxbenefitofEUR18.3millionor1.4percentofincomebeforetaxesmainlyattributabletothe applicationoftaxexemptionsforprioryears,whichhadafavorableeffectontheeffectivetaxratefor2012.

Adjustments in Respect of Prior Years' Deferred Taxes

In2013,werecognizedataxbenefitofEUR16.2millionasaresultofapartlyreleaseofavaluationallowanceforNID creditsorNIDstocktotheextendweexpectfuturetaxableprofitstorealizetheseNIDcreditsbeforeexpirationofthose credits.

Movements in the Liability for Uncertain Tax Positions

In2012,theeffectivetaxratewasimpactedbyataxbenefitofEUR92.4millionor6.9percentofincomebeforeincome taxesmainlyasaresultofthesuccessfulconclusionoftaxauditsindifferentjurisdictions(EUR92.1million)whereas themovementintheliabilityforuncertaintaxpositionsin2013isconsideredtobelimited.

Adjustments in Respect of Non-Taxable Pre-Existing Relationships

In2013,theeffectivetaxratewasimpactedbythesettlementgainrecognizedasaresultoftheeffectivelysettledpreexistingrelationshipsrelatedtotheacquisitionofCymer(werefertoNote4)asthisgaindoesnotrepresentataxable itemforincometaxpurposes.

Other Credits and Non-taxable Items

Othercreditsandnon-taxableitemsreflecttheimpactonstatutoryratesofpermanentnon-taxableitemssuchasnondeductibletaxes,non-deductibleinterestexpense,andnon-deductiblemealsandentertainmentexpenses,aswellas theimpactof(thereversalof)varioustaxcreditsonourprovisionforincometaxes.

Income Taxes Recognized Directly in Equity

Incometaxesrecognizeddirectlyinequity(includingOCI)areasfollows:

Income tax recognized in equity	2013	2012
(in thousands)	EUR	EUR
Current tax
Derivativefinancialinstruments	(759)	(1,066)
Issuanceofshares	(3,110)	(2,116)
Deferred tax
Share-basedpayments	(3,327)	(1,882)
Income tax recognized in equity	(7,196)	(5,064)

Liability for Uncertain Tax Positions and Deferred Taxes

ThetotaldeferredtaxpositionandliabilityforuncertaintaxpositionsrecordedontheStatementOfFinancialPosition areasfollows:

As of December 31	2013	2012
(in thousands)	EUR	EUR
Liabilityforuncertaintaxpositions	(74,069)	(59,967)
Deferredtaxposition	(63,092)	115,771
Total	(137,161)	55,804

Liability for Uncertain Tax Positions

Thecalculationofourliabilityforuncertaintaxpositionsinvolvesuncertaintiesintheapplicationofcomplextax laws.Ourestimateforthepotentialoutcomeofanyuncertaintaxissueishighlyjudgmental.Webelievethatwehave adequatelyprovidedforuncertaintaxpositions.However,settlementoftheseuncertaintaxpositionsinamanner inconsistentwithourexpectationscouldhaveamaterialimpactonourFinancialStatements.

ConsistentwiththeprovisionsofIAS12,asofDecember31,2013,ASMLhasaliabilityforuncertaintaxpositionsof EUR74.1million(2012:EUR60.0million)whichisclassifiedasnon-currentdeferredandothertaxliabilities.Thetotal liabilityforuncertaintaxpositions,ifreversed,wouldhaveafavorableeffectonoureffectivetaxrate.

Areconciliationofthebeginningandendingbalanceoftheliabilityforuncertaintaxpositionsisasfollows:

2012	2013	As of December 31
EUR	EUR	(in millions)
155,432	59,967	Balance,January1
4,297	6,045	Grossincreases–taxpositionsinpriorperiod
(92,521)	(2,025)	Grossdecreases–taxpositionsinpriorperiod
3,255	6,796	Grossincreases–taxpositionsincurrentperiod
-	6,514	Increaseresultingfromacquisition
-	(2,964)	Settlements
(10,496)	(264)	Lapseofstatuteoflimitations
59,967	74,069	Total liability for uncertain tax positions

For2012thegrossdecreasesintaxpositionsinpriorperiodmainlyrelatestothereleaseoftaxpositionsafter succesfullconclusionoftaxauditsindifferentjurisdictions(EUR92.5million).

Webelieveourallowancesfortaxcontingenciesareappropriate.Weestimatethatthetotalliabilityforuncertaintax positionswilldecreasebyEUR0.6millionwithinthenext12months.Theestimatedchangestotheliabilityforuncertain taxpositionswithinthenext12monthsaremainlyduetoexpectedsettlementswithtaxauthorities.

Wearesubjecttotaxauditsincertainofourmajortaxjurisdictions,foryearsfromandincluding2011onwardsin HongKong,andforyearsfromandincluding2001onwardsintheUnitedStates.Inthecourseofsuchaudits,localtax authoritiesmaychallengethepositionstakenbyus.

Deferred Tax Position

Thechangesindeferredincometaxassetsandliabilitiesconsistofthefollowingelements:

Changes in deferred tax assets and liabilities (in thousands)	2013 EUR	2012 EUR
Balance, January 1 Acquisitionthroughbusinesscombinations	115,771 (193,861)	164,389 -
Statementofprofitorloss	11,718	(45,593)
Equity	3,327	1,882
Exchangedifferences	(47)	(4,907)
Balance, December 31	(63,092)	115,771

ThecompositionoftotaldeferredtaxassetsandliabilitiesintheConsolidatedFinancialStatementsisasfollows:

Deferred tax assets Composition of temporary differences	January 1, 2013	Acquisitions through business combinations	Consolidated Statement of profit or loss	Equity	Exchange differences	December 31, 2013
(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR
Unrealizedprofitsresultingfromintercompany transactions	60,174	14,467	(11,893)	-	(4,671)	58,077
Inventories	28,167	10,258	9,269	-	(1,033)	46,661
Capitalizedresearchanddevelopmentexpenditures	8,669	-	(8,669)	-	-	-
Deferredrevenue	20,572	41,679	(43,035)	-	(2,807)	16,409
Provisions	21,528	7,148	17,960	-	(1,176)	45,460
Installationandwarrantyreserve	7,151	-	(174)	-	(275)	6,702
Taxeffectcarry-forwardlosses	5,557	754	61,551	-	(580)	67,282
Fixedassets	7,798	4,140	325	-	(478)	11,785
Restructuringandimpairment	4,336	-	(791)	-	(184)	3,361
Alternativeminimumtaxcredits1	5,227	-	1,349	-	(234)	6,342
Share-basedpayments	5,493	16,885	4,550	3,327	(1,271)	28,984
Othertemporarydifferences	13,966	2,234	(20)	-	(4,519)	11,661
Total2	188,638	97,565	30,422	3,327	(17,228)	302,724

1 AlternativeminimumtaxcreditsrelatetoprepaidUStaxeswhicharecreditedagainstfuturetaxableprofitsafterthecarry-forwardlossesused.

2 UnrecognizedtaxassetsasatDecember31,2013amountedtoEUR25.0million(2012:EUR30.5million)

Deferred tax liabilities Composition of temporary differences	January 1, 2013	Acquisitions through business combinations	Consolidated Statement of profit or loss	Equity	Exchange differences	December 31, 2013
(in thousands)	EUR	EUR	EUR	EUR	EUR	EUR
Capitalizedresearchanddevelopmentexpenditures	(44,256)	-	(28,000)	-	560	(71,696)
Intangiblefixedassets	-	(286,337)	8,730	-	15,702	(261,905)
Fixedassets	(25,890)	(4,786)	12,517	-	567	(17,592)
Borrowingcosts	(1,958)	-	135	-	-	(1,823)
Othertemporarydifferences	(763)	(303)	(12,086)	-	352	(12,800)
Total	(72,867)	(291,426)	(18,704)	-	17,181	(365,816)

Deferred tax assets
Composition of temporary differences (in thousands)	January 1, 2012 EUR	Consolidated Statement of profit or loss EUR	Equity EUR	Exchange differences EUR	December 31, 2012 EUR
Unrealizedprofitsresultingfromintercompanytransactions	60,327	2,260	-	(2,413)	60,174
Inventories	34,935	(6,468)	-	(300)	28,167
Capitalizedresearchanddevelopmentexpenditures	25,022	(16,601)	-	248	8,669
Deferredrevenue	23,892	(3,083)	-	(237)	20,572
Provisions	14,515	7,296	-	(283)	21,528
Installationandwarrantyreserve	8,772	(1,508)	-	(113)	7,151
Taxeffectcarry-forwardlosses	7,735	(2,219)	-	41	5,557
Fixedassets	6,495	1,454	-	(151)	7,798
Restructuringandimpairment	5,146	(733)	-	(77)	4,336
Alternativeminimumtaxcredits1	5,028	229	-	(30)	5,227
Share-basedpayments	3,660	49	1,882	(98)	5,493
Othertemporarydifferences	16,728	(1,138)	-	(1,624)	13,966
Total	212,255	(20,462)	1,882	(5,037)	188,638

1 AlternativeminimumtaxcreditsrelatetoprepaidUStaxeswhicharecreditedagainstfuturetaxableprofitsafterthecarry-forwardlossesused.

Deferred tax liabilities		Consolidated
Composition of temporary differences	January 1, Statement of 2012		Equity	Exchange differences	December 31, 2012
(in thousands)	EUR	profit or loss EUR	EUR	EUR	EUR
Capitalizedresearchanddevelopmentexpenditures	(26,357)	(17,891)	-	(8)	(44,256)
Fixedassets	(19,108)	(6,965)	-	183	(25,890)
Borrowingcosts	(1,554)	(404)	-	-	(1,958)
Othertemporarydifferences	(847)	129	-	(45)	(763)
Total	(47,866)	(25,131)	-	130	(72,867)

Tax Effect Carry-forward Losses

Deferredtaxassetsfromcarry-forwardlossesresultpredominantlyfromnetoperatinglosscarry-forwardsincurredin theUnitedStatesandNIDstockinBelgium.

NetoperatinglossesqualifiedastaxlossesunderUnitedStatesfederaltaxlawswereincurredduring2013.Net operatinglossesqualifyingastaxlossesunderUnitedStatesfederaltaxlawsincurredbyUnitedStatesgroup companiescaningeneralbeoffsetagainstfutureprofitsrealizedinthe20yearsfollowingtheyearinwhichthelosses areincurred.NetoperatinglossesqualifiedastaxlossesunderUnitedStatesstatetaxlawsincurredbyUnitedStates groupcompaniescaningeneralbeoffsetagainstfutureprofitsrealizedinthe5to20yearsfollowingtheyearinwhich thelossesareincurred.TheperiodofnetoperatinglosscarryforwardforUnitedStatesstatetaxpurposesdepends onthestateinwhichthetaxlossarose.OurabilitytouseUnitedStatesstatetaxlosscarryforwardsinexistenceat December31,2013,issubjecttovaryingstatestatutes(providingforperiodsofbetween5and20years)taxassets arerecognizedtotheextendthatitisprobablethatsufficienttaxableprofitsareavailable.Thetotalamountoflosses carriedforwardunderUnitedStatesfederaltaxlawsasofDecember31,2013,isEUR67.5milliontaxbasisorEUR 23.6milliontaxeffect.ThetotalamountoflossescarriedforwardunderUnitedStatesstatetaxlawsasofDecember31, 2013,isEUR254.3milliontaxbasisorEUR7.9milliontaxeffect.

NIDstockinBelgiumcangenerallybeoffsetagainstfutureprofitsrealizedinthe7yearsfollowingtheyearinwhichthe NIDStockoccurs.ThetotalamountofNIDstockisEUR47.6milliontaxablebaseandEUR16.2milliontaxeffect.

28. Subsidiaries

DetailsofourmainsubsidiariesatDecember31,2013areasfollows:

Legal Entity	Country of Incorporation
Main subsidiaries of ASML Holding N.V.1 :
ASMLNetherlandsB.V.	Netherlands(Veldhoven)
ASMLMaskToolsB.V.	Netherlands(Veldhoven)
ASMLSystemsB.V.	Netherlands(Veldhoven)
ASMLGermanyGmbH	Germany(Dresden)
ASMLFranceS.a.r.l.	France(Montbonnot)
ASML(UK)Ltd.	UK(Paisley(Scotland))
ASMLIsrael(2001)Ltd.	Israel(Ramat-Gan)
ASMLIrelandLtd.	Ireland(Dublin)
ASMLItalyS.r.l.	Italy(Avezzano)
ASMLHongKongLtd.	HongKongSAR
ASMLSingaporePte.Ltd.	Singapore
ASMLKoreaCo.Ltd.	Korea(Kyunggi-Do)
ASMLJapanCo.Ltd.	Japan(Kawasaki-shi,Kanagawa-Ken)
ASMLLithographyFacilitiesScienceandTechnologyCo.Ltd.	China(Tianjin)
ASMLTaiwanLtd.	Taiwan(Hsinchu)
ASMLEquipmentMalaysiaSdn.Bhd.	Malaysia(Penang)
ASMLBelgiumBVBA	Belgium(Essen)
ASMLBelgiumFinanceCV	Belgium(Essen)
BrionTechnologies(Shenzhen)Co.Ltd.	China(Shenzhen)
BrionTechnologies,Inc.	US(Wilmington,Delaware)
ASMLUS,Inc.	US(Wilmington,Delaware)
ASMLCapitalUS,Inc.	US(Wilmington,Delaware)
ASMLMaskTools,Inc.	US(Dover,Delaware)
ASMLParticipationsUSInc.	US(Wilmington,Delaware)
LehrerPearson,Inc.	US(Wilmington,Delaware)
ASMLVentures1,Inc.	US(Wilmington,Delaware)
Cymer,LLC.	US(Reno,Nevada)
eLithLLC.	US(Wilmington,Delaware)
ASMLHongKongLogisticServicesLtd.	HongKongSAR
CymerB.V.	Netherlands(Amsterdam)
CymerJapan,Inc.	Japan(Tokyo)
CymerKorea,Inc.	Korea(Kyunggi-Do)
CymerSingaporePteLtd.	Singapore(Singapore)
CymerSoutheastAsiaLtd.	Taiwan(Hsinchu)
CymerSemiconductorEquipment(Shanghai)Co.Ltd.	China(Pudong)
TCZ,LLC.	US(Reno,Nevada)
TCZPteLtd.	Singapore(Singapore)
TCZGmbH	Germany(Oberkochen)

1 Allofoursubsidiariesare(directlyorindirectly)wholly-owned,withexceptionofeLithLLC,inwhichweholdaninterestof50percent.

29. Segment Disclosure

SegmentinformationhasbeenpreparedinaccordancewithIFRS8,"OperatingSegments".

ASMLhasonereportablesegment,forthedevelopment,production,marketing,saleandservicingofadvanced semiconductorequipmentsystemsexclusivelyconsistingoflithographyrelatedsystems.InprioryearsourCEOwas identifiedasCODM.AsaresultofASML'schangeinleadershipasannouncedonApril17,2013,ourCEOandCTO havebeenjointlyidentifiedastheCODM.BoththeCEOandCTOreviewtheoperatingresultstomakedecisionsabout allocatingresourcesandassessingperformance.Thechangeinleadershipdidnotresultinachangeinreportable segmentscomparedto2012.

Managementreportingincludesnetsystemsalesfiguresofnewandusedsystemsandincludessalespertechnology. Netsystemsalesfornewandusedsystemswereasfollows:

Year ended December 31	2013	2012
(in thousands)	EUR	EUR
Newsystems	3,890,154	3,620,260
Usedsystems	102,975	181,372
Net system sales	3,993,129	3,801,632

TheincreaseinnetsystemsalesofEUR191.5million,or5.0percent,toEUR3,993.1millionin2013fromEUR 3,801.6millionin2012ismainlycausedbyanincreasedASPwhichmorethanoffsetstheloweramountofsystemssold.

Netsalesbytechnologywasasfollows:

Net system sales	Net system sales	Year ended December 31
in EUR	in Units	(in thousands)
		2013
60,100	1	EUV
3,120,719	77	ArFi
38,019	2	ArFdry
720,053	64	KrF
54,238	13	I-line
3,993,129	157	Total
		2012
43,700	1	EUV
2,715,221	72	ArFi
81,428	4	ArFdry
908,244	78	KrF
53,039	15	I-line
3,801,632	170	Total

SegmentperformanceisevaluatedbyourCODMbasedonUSGAAPnetincomeorlosswhichincertainrespect,as explainedinthetablebelow,ismeasureddifferentlyfromnetincomeorlossreportedinourConsolidatedFinancial StatementswhicharebasedonIFRS.

Year ended December 31	2013	2012
(in thousands)	EUR	EUR

Netsystemsales	3,993,129	3,801,632
Netserviceandfieldoptionsales	1,252,197	929,923
Total net sales	5,245,326	4,731,555
Costofsystemsales	(2,233,621)	(2,198,921)

Costofserviceandfieldoptionsales	(834,443)	(527,377)
Total cost of sales	(3,068,064)	2,726,298
Gross profit	2,177,262	2,005,257
Otherincome	64,456	-
Researchanddevelopmentcosts	(882,029)	(589,182)
Selling,generalandadministrativecosts	(311,741)	(259,301)
Income from operations	1,047,948	1,156,774
Interestandother,net	(24,471)	(6,196)
Income before income taxes	1,023,477	1,150,578
Provisionforincometaxes	(7,987)	(4,262)

Net income	1,015,490	1,146,316
DifferencesUSGAAPandIFRS	178,354	156,031
Net income based on IFRS	1,193,844	1,302,347

SegmentperformanceisalsoevaluatedbyourmanagementbasedonU.S.GAAPfortotalassets.Thetablebelow presentsthemeasurementsandthereconciliationtototalassetsintheConsolidatedStatementofFinancialPosition:

2012	2013	As of December 31
EUR	EUR	(in thousands)
7,410,478	11,513,730	Totalassetsformanagementreportingpurposes
472,577	689,635	DifferencesUSGAAPandIFRS
7,883,055	12,203,365	Total assets based on IFRS

Forgeographicalreporting,netsalesareattributedtothegeographiclocationinwhichthecustomers'facilitiesare located.Totalnon-currentassetsareattributedtothegeographiclocationinwhichtheseassetsarelocatedandexclude deferredtaxassets,financialinstruments,post-employmentbenefitassetsandrightsarisingunderinsurancecontracts.

Netsalesandnon-currentassetsbygeographicregionwereasfollows:

Year ended December 31	Net sales	Non-current assets
(in thousands)	EUR	EUR
2013
Japan	201,664	2,679
Korea	1,286,509	13,347
Singapore	139,313	837
Taiwan	2,221,426	48,076
RestofAsia	478,234	3,427
Netherlands	11,525	1,783,999
RestofEurope	187,030	1,830
UnitedStates	719,625	3,084,872
Total	5,245,326	4,939,067
2012
Japan	292,309	40,856
Korea	1,276,304	17,664
Singapore	98,554	968
Taiwan	1,479,768	50,372
RestofAsia	197,262	2,073
Netherlands	-	1,482,154
RestofEurope	256,192	1,599
UnitedStates	1,131,166	298,753
Total	4,731,555	1,894,439

In2013,netsalestothelargestcustomeraccountedforEUR2,058.6million,or39.2percent,ofnetsales(2012:EUR 1,236.1million,or26.1percent,ofnetsales).Ourthreelargestcustomers(basedonnetsales)accountedforEUR861.4 million,or73.3percent,ofaccountsreceivableandfinancereceivablesatDecember31,2013,comparedwithEUR 535.1million,or58.9percent,atDecember31,2012.

Substantiallyallofoursaleswereexportsalesin2013and2012.

30. Selected Operating Expenses and Additional Information

Personnelexpensesforallpayrollemployeeswere:

Year ended December 31	2013	2012
(in thousands)	EUR	EUR
Wagesandsalaries	835,563	711,039
Socialsecurityexpenses	69,839	58,180
Pensionandretirementexpenses	60,275	50,298
Share-basedpayments	47,422	18,714
Personnel expenses	1,013,099	838,231

TheaveragenumberofpayrollemployeesinFTEsduring2013and2012was9,540and8,140,respectively.Thetotal numberofpayrollandtemporaryemployeesinFTEspersectorwas:

As of December 31	2013	2012
CustomerSupport	2,949	2,538
SG&A	1,098	869
IndustrialEngineering	785	637
Manufacturing&Logistics	3,658	2,856
R&D	4,735	3,736
Total employees (in FTEs)	13,225	10,636
Less:Temporaryemployees(inFTEs)	2,865	2,139
Payroll employees (in FTEs)	10,360	8,497

TheaveragenumberofpayrollemployeesinFTEsinouroperationsintheNetherlandsduring2013and2012was5,112 and4,620,respectively.

31. Board of Management and Supervisory Board Remuneration

TheremunerationofthemembersoftheBoardofManagementisdeterminedbytheSupervisoryBoardontheadvice oftheRemunerationCommittee.The2010RemunerationPolicy,asadoptedbytheGeneralMeetingofShareholderson March24,2010,wasnotchangedin2013.

The2010RemunerationPolicyenablesASMLtocontinuetoattract,rewardandretainqualifiedandexperienced industryprofessionalsinaninternationallabormarket.Theremunerationstructureandlevelsareassessedagainsta referencemarketbybenchmarking.Thetotalremunerationin2013consistsofbasesalary,short-termperformance incentives(incash),long-termperformanceincentives(inshares)andotherbenefits.

The 2013 Appointment Amendment and 2014 Mutual Consent Termination of the Employment Agreement with Mr. Meurice on the Conclusion of His Activities as CEO

TorealizeareliabletransferofhisresponsibilitiestoMessrs.WenninkandVandenBrink,theSupervisoryBoardandMr. MeuriceagreedonanamendedroleasperJuly1,2013,atwhichdateMr.MeuriceceasedtobeamemberoftheBoard ofManagement.Thischangeisduetoanaturaltransitionofresponsibilitiesandisnotduetoperformance,expected adverseevolutionofthecompanyordifferenceofopinion.

TheemploymentagreementofMr.MeuricewillcontinueuntilMarch31,2014.Untilthen,Mr.Meuricewillremain availabletoprovideadvicetotheSupervisoryBoardand/orBoardofManagementuponrequest,keepaprofessional interfacewithkeydecisionmakersatcustomersandpartnersandpersonallydrivetheexecutionofanumberof strategicprojects.

ThebenefitsundertheemploymentcontractwillbehonoreduntilMarch31,2014,inaccordancewiththe2010 RemunerationPolicy.Therewillbenoseverancepaymentgiventheconclusionoftheemploymentagreementbymutual consent.

Thenumberofsharestobeawardedfromtheperformancesharesgrantedin2011,2012and2013havebeencalculated basedontheperformanceofthelastthreecompletedyearsofassignmentandontheintentionofboththeSupervisory BoardandMr.Meuricetohaveafairfinalsettlementupontermination,recognizingtheaddedvalueofMr.Meuriceto ASML,ensuringasmoothtransitiontothePresidentsandwaivinganypotentialbenefitsupontermination.Asaresult, thenumberofsharestobeawarded,subjecttocontinuedemploymenttoDecember31,2013,willbe95percentof thesharesgrantedin2011,2012and2013basedontheactualperformanceintheperiod2010-2012.Theoriginal grantdatefairvaluesfortheseconditionallygrantedperformancesharesareallocatedovertheperioduntiltherevised estimatedvestingin2014.

Apro-ratedcompensation(consistingofbasesalaryandattargetshorttermincentive)willapplyfortheperiodJanuary throughMarch2014.Inaddition,fortheservicesinthefirstquarterof2014,theshare-basedcompensationelement ofMr.Meurice'sremunerationwillbesettledincashandcalculatedas15,167.75shares,multipliedbytheshareprice effectiveasofthedateofexit.TheCompanywillreimbursereasonablerepatriationandmovingcostsmade.

Remuneration of the Presidents

PerJuly1,2013,basesalaryofthePresidents,Messrs.Wennink(PresidentandCEO)andVandenBrink(Presidentand CTO),wasincreased.TheSTItargetlevelforMr.WenninkandMr.VandenBrinkremainedat60percent.Nochanges weremadetothePresidents'conditionalLTIawardsforthefinancialyear2013.

Messrs.WenninkandVandenBrinkholdemploymentcontractsforanindefiniteperiodoftime,but,uponnotificationto the2014GeneralMeetingofShareholders,theirappointmenttermwillbechangedfromanindefinitetermtoadefinite termoffouryears.Ifany,theseverancepaymentatterminationofemploymentwillnotexceedone-yearbasesalary.

Appointment New CFO

PerDecember1,2013Mr.NicklwasappointedasExecutiveVicePresidentandCFO.AlthoughMr.Nicklwillonlybe formallyappointedasmemberoftheBoardofManagementuponnotificationtotheGeneralMeetingofShareholdersto beheldonApril23,2014,his2013remunerationdetailsareincludedinthe2013compensationtable.Theremuneration packageofMr.Nicklisfullyinlinewiththe2014RemunerationPolicyandtheapplicableCorporateGovernance standards.Mr.Nicklwillbeappointedforaperiodoffouryearsunderamanagementservicesagreement.Ifany, severanceisrestrictedtoonetimebasesalary.

ASMLcompensatedpartofthesharesandstockoptionsthatwereforfeitedwhenMr.Nickllefthisformercompany intheUnitedStates.Thiscompensationtakestheformofamaximumof56,000performancerelatedshares,tobe rewardedin2014,subjecttotheperformanceconditionsandathreeyearvestingperiodasapplicableunderthe

2014RemunerationPolicy.Theforfeitedshareandoptionawardshadavestingperiodwhichwasshorterthanthe performanceperiodappliedbyASMLandthemajorityofoutstandingawardswerenotperformancerelated.

TotalDirectCompensation,PensionandOtherBenefits

TheremunerationofthemembersoftheBoardofManagementandformermembersoftheBoardOfManagementin 2013,2012and2011wasasfollows:

		Fixed	Short-term (variable)	Long-term (variable)	Subtotal Remuneration		Other		Total Remuneration
		Base salary	STI (Cash)1	LTI (share awards)2	Subtotal6	Pension	Compensation Pension Premium7	Other benefits and expense reimbursement8	Total12
	Year	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
P.T.F.M.	2013	681,500	407,673	1,349,1153	2,438,288	106,033	-	45,848	2,590,169
Wennink	2012	508,000	304,800	1,289,4154	2,102,215	79,190	-	46,275	2,227,680
	2011	488,000	291,043	875,4935	1,654,536	85,994	94,455	44,669	1,879,654
M.A.vanden	2013	697,000	416,945	1,429,1973	2,543,142	112,481	-	45,920	2,701,543
Brink	2012	538,000	322,800	1,366,0394	2,226,839	83,990	-	47,540	2,358,369
	2011	517,000	308,339	927,9125	1,753,251	91,243	181,826	45,502	2,071,822
W.Nickl9	2013	50,000	65,000 10	-	115,000	4,547	-	12,936	132,483
	2012	-	-	-	-	-	-	-	-
	2011	-	-	-	-	-	-	-	-
F.J.vanHout	2013	458,000	273,976	1,182,9073	1,914,883	71,164	-	42,910	2,028,957
	2012	445,000	267,000	1,131,6764	1,843,676	69,110	-	37,313	1,950,099
	2011	428,000	255,259	832,201	1,515,460	75,134	9,735	35,190	1,635,519
F.J.M.	2013	446,000	266,797	1,150,3923	1,863,189	69,244	-	28,426	1,960,859
Schneider-	2012	433,000	259,800	1,144,137	1,836,937	67,190	-	28,889	1,933,016
Maunoury	2011	416,000	248,102	676,945	1,341,047	56,475	4,290	28,313	1,430,125

			Fixed Short-term (variable)	Long-term (variable)	Subtotal Remuneration		Other		Total Remuneration
Former Board of Management	Financial Year	Base salary EUR	STI (Cash)1 EUR	LTI (share awards)2 EUR	Subtotal6 EUR	Pension EUR	Compensation Pension Premium7 EUR	Other benefits and expense reimbursement8 EUR	Total12 EUR
E.Meurice	2013 2012 2011	843,000 818,000 787,000	630,353 613,500 586,709	5,837,399 3,11 2,079,601 4 1,413,218 5	7,310,752 3,511,101 2,786,927	172,593 167,427 140,113	- - 88,050	107,500 127,116 136,765	7,590,845 3,805,644 3,151,855

1 ActualSTI(cash)chargeabletothecompanyinthefinancialyear(i.e.STIrelatingtoperformanceinthecurrentyearbutpaidoutinthenextfinancial year).

2 TheremunerationreportedaspartoftheLTI(shareawards)isbasedoncostincurredunderIFRS.Thecostsofshareawardsarechargedtothe ConsolidatedStatementofProfitorLossoverthe3yearvestingperiodbasedonthemaximumachievablenumberofshareawards.Thereforethe costsfore.g.thefinancialyear2013includecostsoftheBoardofManagementperformanceshareplan2013,2012and2011.Furthermorethe differencebetweentheamountbasedonthemaximumachievablenumberofshareawardsandtheamountbasedontheactualnumberofshare awardsthatvest,isreleasedtotheConsolidatedStatementofProfitorLossinthefinancialyearinwhichtheshareawardsvest.

3 TheremunerationreportedaspartoftheLTI(shareawards)fortheyear2013includesanadjustmentfortheBoardofManagementperformance shareplan2010basedontheactualnumberofshareawardsvestedin2013.TheadjustmentforMrWennink,MrvandenBrink,MrvanHout,Mr. Schneider-MaunouryandforMrMeuriceamountstoEUR-63,035,EUR-66,795,EUR-55,376,EUR-53,748,EUR-101,740,respectively.

4 TheremunerationreportedaspartoftheLTI(shareawards)fortheyear2012includesanadjustmentfortheBoardofManagementperformance shareplan2009basedontheactualnumberofshareawardsvestedin2012.TheadjustmentforMrWennink,MrvandenBrink,MrvanHoutandfor MrMeuriceamountstoEUR-65,785,EUR-69,831,EUR-57,838,EUR-106,266,respectively.

5 TheremunerationreportedaspartoftheLTI(shareawards)fortheyear2011includesanadjustmentfortheBoardofManagementperformance shareplan2008basedontheactualnumberofshareawardsvestedin2011.TheadjustmentforMrWennink,MrvandenBrinkandforMrMeurice amountstoEUR-91,645,EUR-97,281,EUR-148,040,respectively.

6 Thissubtotalreflectsbasesalary,STI(cash)andLTI(shareawards).

7 In2011,compensationwaspaidtotheBoardofManagementregardingtheriskpremiumforspouse/orphanpensions,toaligntheBoardof Managementpensionarrangementwithseniormanagement.Thisconcernedareimbursementforriskpremiumsthatwereerroneouslypaidbythe participantsinthepast.

8 Otherbenefitsandexpensereimbursementaregrossamountsandmayincludehousingcosts,companycarcosts,travelexpenses,socialsecurity costs,healthanddisabilityinsurancecostsandrepresentationallowances.

9 Mr.NicklonlyjoinedASMLinDecember2013andwasnotpartoftheBoardofManagementashisappointmentisstillsubjecttothenotificationof theGeneralMeetingofShareholders2014.

10 Mr.Nicklispartlycompensatedforhislossof2013variableincomeathispreviousemployer;hereceivesfromASMLEuro65,000permonthfor everymonthinfunctionin2013.

11 TheremunerationreportedaspartoftheLTI(shareawards)fortheyear2013mainlyincludescostsrelatedtotheaccelleratedvestingoftheshare awardsfortheshareplans2011,2012and2013.

12 ThistotalreflectsthesubtotalRemuneration,pension,compensationpensionpremiumandtheotherbenefitsandexpensereimbursement.

Short-term Incentive

Theannualperformance-relatedcashincentivehasanon-targetlevelof75.0percentofbasesalaryfortheCEOand 60.0percentfortheothermembersoftheBoardofManagement.Pleasenotethattoensureasmoothtransitiontothe 2014RemunerationPolicy,theCEOhasacceptedatargetSTIof60percentperJuly1,2013inaccordancewiththe 2014RemunerationPolicyandtherewithfollowthetargetandmaximumSTIpercentagesthatapplytotheother membersoftheBoardofManagement.

Thepayoutsarepro-ratedonalinearbasistothelevelofachievementofsixperformancecriteria.Foreach performancecriterionchallengingbutrealistictargetsareset(bothfor'ontarget'and'threshold'performance–for belowthresholdperformancefortherespectiveperformancecriterionnopayoutwilloccur).Theperformancetarget settingandperformanceevaluationisconductedincooperationwiththerelevantcommitteesoftheSupervisoryBoard. TechnologytargetissetandevaluatedincooperationwiththeTechnologyandStrategyCommittee,whereasfinancial targetsaresetandevaluatedincooperationwiththeAuditCommittee.TheCompany'sexternalauditorisengaged toverifytheconsistentapplicationoftheapprovedcalculationmethodandtheaccuracyofthecalculationsofSTI outcomes.

Ofthefivequantitativeperformancecriteria(number1-5),threearebasedontheachievementofmeasurablefinancial targets,oneontechnologybasedobjectivesandoneonachievementsinthemarketplace.TheTechnologyLeadership Indexincludesquantitativeandqualitativeelements.Thequalitativetarget(number6)isbasedontheachievementof agreedkeyobjectives.

Theweightingofthequantitativecriteria,butalsotheemphasisofspecificdriversofthesecriteria,maychangefrom timetotimeinordertobefullyalignedwiththestrategicprioritiesinanygivenyear.Alltargetsweresetinadvanceand noretrospectivetargetsettinghastakenplace.Theoverallpayoutisannualandthecashincentiveisaccruedduringthe performanceperiod.

Insettingtheshort-termperformancecriteriafor2013,theSupervisoryBoarddecidedtosetacashrelatedtarget for2013consistingof:OperatingCashFlowH12013(weight25percent),OperatingCashFlowH22013(weight25 percent)andCashConversionCycleFY2013(weighted50percent).Inanticipationofthe2014RemunerationPolicy, theSupervisoryBoarddeviatesfromthe2010PolicyanddecidedtosettheTechnologyLeadershipIndextargetonan annualinsteadofonasemi-annualbasis.Theshort-termqualitativetargetfor2013wastransferredtothelong-term incentiveandexcludedfromtheSTI.TherelativeweightsoftheremainingSTImeasureschangedaccordingly.

EffectiveJanuary1,2013thebasesalaryincreasedbythreepercentforallmembersoftheBoardofManagementwhich alsoimpactsthevariableremuneration,i.e.theSTIandLTI,becauseitiscalculatedasapercentageofbasesalary. In2013,theshort-termperformancecriteria(4outof5performancecriteriawereachievedontargetorabovetarget), and1performancecriteriawasachievedbetweentargetandthresholdlevel),anactualshort-termperformancecash payoutof99.7percentofthetargetSTI(of75percentor60percentrespectivelyofbasesalary)hasbeenawarded. ThisresultsinacashpayoutofEUR1,995,744representing74.8percentofMr.Meurice'sbasesalary,59.8percentof Messrs.Wennink's,VandenBrink's,vanHout'sandSchneider-Maunoury'sbasesalary.

Long-term Incentive

ThemembersoftheBoardofManagementareeligibletoreceiveperformanceshares,whichwillbeawardedannually undertheconditionoffulfillmentofpredeterminedperformancetargets.Performancerelativetothesetargetsis measuredoveraperiodofthreecalendaryears.Theperformancemeasuresforobtainingperformancetargetswillbe ASML'srelativeROAICpositioncomparedthepeergroup(weighted80.0percent)andaqualitativetargetrelatedto ASML'slong-termabilitytokeepperformingathighstandards(weighted20.0percent).

ASMLdefinesandsetsstretchingtargets.Themaximumnumberofperformancesharestobeconditionallyawarded equals146.25percentofbasesalarydividedbythevalueofoneperformanceshare(i.e.reflectingmaximum achievement).Forontargetachievement,thevalueofperformanceshareswillbe80percentofbasesalary.

ThecosttotheCompanyiscalculatedbasedonthemaximumamountofsharesthatcanbeawardedandspreadover thethree-yearperformanceperiod.Anydifferencebetweentheactualachievementafterthreeyearsandthemaximum achievementwillbeadjustedafterthefinalperformanceyear.

Oncethesharesareunconditionallyawardedafterfulfillmentoftheperformanceconditions,theBoardofManagement memberwillretainthesharesforatleasttwoyearsafterthedatetheawardbecomesunconditionaloruntilthe terminationofemployment,whicheverperiodisshorter.TheperiodbeforetheBoardofManagementmemberobtains fullrightstotheshareswillbefiveyearsintotal.

DetailsofperformancesharesgrantedtomembersoftheBoardofManagementareasfollows:

Board of management Grant date		Status	Full control	Number of shares at grant date	Fair value at grant date1	Vesting date	Number of shares at vesting date	End of lock-up date
					EUR
P.T.F.M.	4/19/2013	Conditional	No	35,035	55.47	4/19/2016	-	4/19/2018
Wennink	4/18/2012	Conditional	No	45,689	37.33	4/18/2015	-	4/18/2017
	4/13/2011	Conditional	No	54,974	28.29	4/13/2014	-	4/13/2016
	2/1/2010	Unconditional	No	54,974	22.93	2/1/2013	52,225	2/1/2015
	2/2/2009	Unconditional	No	35,287	13.05	2/2/2012	30,246 2	2/2/2014
	2/4/2008	Unconditional	Yes	35,287	18.18	2/4/2011	30,246 2	2/4/2013
M.A.van	4/19/2013	Conditional	No	37,111	55.47	4/19/2016	-	4/19/2018
denBrink	4/18/2012	Conditional	No	48,387	37.33	4/18/2015	-	4/18/2017
	4/13/2011	Conditional	No	58,256	28.29	4/13/2014	-	4/13/2016
	2/1/2010	Unconditional	No	58,256	22.93	2/1/2013	55,343	2/1/2015
	2/2/2009	Unconditional	No	37,458	13.05	2/2/2012	32,107 2	2/2/2014
	2/4/2008	Unconditional	Yes	37,458	18.18	2/4/2011	32,107 2	2/4/2013
W.Nickl3
	-	-	-	-	-	-	-	-
F.J.	4/19/2013	Conditional	No	30,681	55.47	4/19/2016	-	4/19/2018
vanHout	4/18/2012	Conditional	No	40,023	37.33	4/18/2015	-	4/18/2017
	4/13/2011	Conditional	No	48,293	28.29	4/13/2014	-	4/13/2016
	2/1/2010	Unconditional	No	48,293	22.93	2/1/2013	45,878	2/1/2015
	2/2/2009	Unconditional	No	31,021	13.05	2/2/2012	26,589 2	2/2/2014
F.J.M.	4/19/2013	Conditional	No	29,877	55.47	4/19/2016	-	4/19/2018
Schneider-	4/18/2012	Conditional	No	38,944	37.33	4/18/2015	-	4/18/2017
Maunoury	4/13/2011	Conditional	No	46,886	28.29	4/13/2014	-	4/13/2016
	2/1/2010	Unconditional	No	46,886	22.93	2/1/2013	44,542	2/1/2015

Former Board of Management	Grant date	Status	Full control	Number of shares at grant date	Fair value at grant date1	Vesting date	Number of shares at vesting date	End of lock-up date
					EUR
E.Meurice	4/19/2013	Unconditional	No	56,471	55.47	4/7/2014	53,647	4/7/2014
	4/18/2012	Unconditional	No	73,570	37.33	4/7/2014	69,891	4/7/2014
	4/13/2011	Unconditional	No	88,732	28.29	1/31/2014	84,295	1/31/2014
	2/1/2010	Unconditional	No	29,578	22.93	2/1/2013	28,099	1/2/2014
	2/1/2010	Unconditional	Yes	29,577	22.93	2/1/2013	28,098	10/1/2013
	2/1/2010	Unconditional	Yes	29,577	22.93	2/1/2013	28,098	7/1/2013
	2/2/2009	Unconditional	No	19,000	13.05	2/2/2012	16,287 2	1/2/2014
	2/2/2009	Unconditional	Yes	19,001	13.05	2/2/2012	16,286 2	10/1/2013
	2/2/2009	Unconditional	Yes	19,001	13.05	2/2/2012	16,286 2	7/1/2013
	2/4/2008	Unconditional	Yes	57,002	18.18	2/4/2011	48,859 2	2/4/2013

1 Thefairvalueofthesharesasofthegrantdate.

2 Thenumberofsharesincludedinthelock-upperiodwerereducedin2012asaresultofthesyntheticsharebuybackduetoanexchangeforeach 100ordinarysharesfor77ordinaryshares.Thenumberofsharesvestedin2012afterthesyntheticsharebuybackforMr.Meurice,Mr.Wennink,Mr. vandenBrinkandforMr.vanHoutare37,621shares,23,289shares,24,722sharesand20,473shares,respectively.Thenumberofsharesvestedin 2011afterthesyntheticsharebuybackforMr.Meurice,Mr.WenninkandforMr.vandenBrinkwas37,621shares,23,289sharesand24,722shares, respectively.

3 Mr.NicklonlyjoinedASMLinDecember2013andwasnotpartoftheBoardofManagementashisappointmentisstillsubjecttothenotificationof theGeneralMeetingofShareholders2014.

Pension Benefits

ThepensionarrangementfortheBoardofManagementisbasedontheexcedentarrangementforASMLemployeesin TheNetherlands.TheplanisadefinedcontributionopportunityaslaiddowninDutchfiscalregulations.Pensionable incomeisbasesalaryonly.Riskpremiumsfor(temporary)survivorspensionsarepaidseparatelybytheemployer. Theemployeecontributionintheplanissetat4percentofthepensionbase(pensionableincomeminusWitteveenthreshold)¹ .

¹⁾ Dutchpensionarrangementshaveathresholdinthebuildupofpensionentitlements.Thisthresholdexistsbecauseallparticipantsareassumedto beentitledtotheDutchstatepension(AOW)andthereforedonotneedanadditionalpensionoverthefirstpartoftheirpensionableincome.The minimumlevelinthefiscallegislationforthisthresholdisrelatedtotheAOWallowanceandisknownastheWitteveen-threshold.Thisthresholdis calculatedastheannualAOWallowance(includingholidayallowance)foramarriedpersontimes10/7.TheWitteveen-thresholdfor2013isEuro 13,227.00.

Term of Appointment/Employment

MembersoftheBoardofManagementappointedafterthe2004amendmentoftheArticlesofAssociation,are appointedforaperiodoffouryears,afterwhichreappointmentispossibleforconsecutivetermsofmaximumfour years.Messrs.P.WenninkandM.vandenBrink'sappointmenttotheBoardofManagementisforanindefiniteperiod oftime,astheirinitialappointmentwasbefore2004.Uponnotificationtothe2014AGM,theappointmentofMessrs.P. WenninkandM.vandenBrinkwillbechangedintodefinitetermsoffouryears.

Severance Agreement

IftheCompanygivesnoticeofterminationoftheemploymentagreementormanagementservicesagreementfor reasonswhichareexclusivelyormainlyfoundinactsoromissionsonthesideoftheBoardofManagementmember,no severanceamountwillbegranted.Inthecaseofnoticeofterminationforotherreasons,aseverancepaymentequalto oneannualbasesalarywillbemadeavailableupontheeffectivedateoftermination.

ThisseverancepaymentwillalsobemadeavailableincasetheBoardofManagementmembergivesnoticeof terminationoftheemploymentagreementormanagementservicesagreementduetoasignificantdifferenceofopinion betweentherespectivememberoftheBoardofManagementandtheSupervisoryBoardregardinghisemployment agreement,hisfunctionortheCompany'sstrategy.

Change of Control

BoardofManagementmembersarealsoentitledtotheaforementionedseverancepaymentintheeventASMLorits legalsuccessorgivesnoticeofterminationduetoachangeincontroloriftheBoardofManagementgivesnoticeof termination,whichisdirectlyrelatedtosuchchangeofcontrolandsuchnoticeisgivenwithintwelvemonthsfromthe dateonwhichthechangeofcontroloccurs.

TheChangeofControlprovisionupuntil2013includesamitigationofthepay-outundertheLTI.Thisentailsthatthe sharepricewillbefixedontheaverageofi)theaverageclosingsharepriceoveraperiodof15tradingdayspriortothe firstpublicannouncementofchangeincontrolnegotiationsandii)theaverageclosingsharepriceoveraperiodof30 tradingdayspriortotheclosingofthetransaction.

Supervisory Board

TheannualremunerationforSupervisoryBoardmemberscoverstheperiodfromoneAGMtothenextone.Theannual remunerationispaidinquarterlyinstallmentsstartingaftertheAGM.In2011theSupervisoryBoardproposedandthe GeneralMeetingofShareholdersapprovedanadjustmentoftheremunerationoftheSupervisoryBoard,effectiveasper April1,2011.FurthermorethegeneralmeetingofShareholdersapprovedafurtherincreaseoftheannual(fixed)feewith amaximumamountofEUR5,000dependingoncircumstances,whichtheSupervisoryBoardimplementedonApril1, 2012.TherewerenochangestotheremunerationoftheSupervisoryBoardin2013.

ThefollowingtablesetsforthanoverviewoftheremunerationawardedtoSupervisoryBoardMembersin2013and 2012:

Year ended December 31, 2013	Total	Supervisory board	Audit committee	Remuneration committee	Selection and nomination committee	Technology and strategy committee	Other1,2
ArthurP.M.vanderPoel	96,000	70,000	10,000	-	8,000	8,000	-
OBBilous	112,000	80,000	-	-	11,0004	11,0004	10,000
FritzW.Fröhlich	76,000	50,000	15,000	-	6,0005	-	5,000
Hendrika(Ieke)C.J.vanden Burg	58,000	50,000	-	8,000	-	-	-
WilliamT.Siegle	29,133	25,3335	-	-	-	3,8005	-
PaulineF.M.vanderMeer Mohr	58,000	50,000	-	8,000	-	-	-
DougGrose3	94,000	80,000	-	-	6,0005	8,000	-
ClaraSmits-Nusteling3	60,000	50,000	10,000	-	-	-	-
WolfgangH.Ziebart	71,500	50,000	2,5005	11,0004	-	8,000	-
Total	654,633	505,333	37,500	27,000	31,000	38,800	15,000

Year ended December 31, 2012		Total Supervisory board	Audit committee	Remuneration committee	Selection and nomination committee	Technology and strategy committee	Other1,2
ArthurP.M.vanderPoel	94,750	68,750	10,000	-	8,000	8,000	-
JosW.B.Westerburgen	96,116	48,750	-	12,000	12,000	-	23,3666
OBBilous	104,750	78,750	-	-	8,000	8,000	10,000
FritzW.Fröhlich	68,750	48,750	15,000	-	-	-	5,000
Hendrika(Ieke)C.J.vanden Burg	56,750	48,750	-	8,000	-	-	-
WilliamT.Siegle	90,750	78,750	-	-	-	12,000	-
PaulineF.M.vanderMeer Mohr	56,750	48,750	-	8,000	-	-	-
WolfgangH.Ziebart	72,750	48,750	10,000	6,0004	-	8,000	-
Total	641,366	470,000	35,000	34,000	28,000	36,000	38,366

1 TocompensateforcertainobligationsASMLhastowardstheU.S.governmentasaresultoftheacquisitionofSiliconValleyGroupin2001,oneU.S. memberreceivesanadditionalEUR10,000tofulfilltheseobligations.

2 Inadditiontotheannualfixedfee,theVice-ChairmanoftheSupervisoryBoardreceivesEUR5,000peryeartofulfillhisrole.

3 During2013DougGroseandClaraSmits-NustelingwereappointedasmemberoftheSupervisoryBoardandthereforereceivedanobserverfeein thefirstquarter.

4 Amountdiffersfromtheannualcompensationduetoarolechangefrommembertochairmanofthecommittee.

5 Amountdiffersfromtheannualcompensationasthememberwasnotpartofthecommitteeforthefullyear.

6 In2012JosWesterburgenreceivedaprovisionalpaymentrelatedtothesupervisioryboardremunerationfortheperiodJanuarytoApril2013.As legislationregardingVATregistrationforSupervisioryBoardmembershaschangedasof2013andJosWesterburgenhasresignedper2013,itwas decidedtopaytheremunerationfeeinadvance.

Inaddition,anetcostallowancewaspaidtoeachSupervisoryBoardmemberin2013,amountingtoEUR1,800per year,andEUR2,400peryearfortheChairmanoftheSupervisoryBoard.

MembersoftheSupervisoryBoardarefreetoacquireordisposeASMLsharesoroptionsfortheirownaccount, providedtheycomplywiththeapplicableASMLInsiderTradingRules.Thosesecuritiesarenotpartofmembers' remunerationfromtheCompanyandarethereforenotincluded.NoneofthemembersoftheSupervisoryBoard currentlyownessharesoroptionsonsharesoftheCompany.

TheannualremunerationforthemembersandformermembersoftheBoardofManagementandSupervisoryBoard membersover2013amountstoEUR17.7million(2012:EUR12.9million).

32. Research and Development Costs

R&Dcosts(netofcreditsandexcludingcontributionsundertheNREfundingagreementsfromParticipatingCustomers oftheCCIP)increasedbyEUR265.9million,or89.2percent,toEUR564.0millionin2013fromEUR298.1millionin 2012.R&DcostsmainlyasaresultoftheacquisitionofCymerandfurtherinvestmentsinourotherstrategicprograms (EUV,immersionandholisticlithography).

R&DcostsincludecreditsforanamountofEUR9.2millionandEUR10.3millionin2013and2012,respectively.R&D creditsrelatetoworldwide(inter-)governmentalfundingforcertainstrategicdevelopmentprograms.Thedecrease inR&Dcreditsistheresultofachangeingovernmentprogramsfromsubsidypaymentstofiscalincentives.These incentivesleadtotaxdeductionsinmainlytheDutchandUnitedStatestaxjurisdictions.

33. Finance Income and Costs

FinanceincomeofEUR9.2million(2012:EUR16.6million)mainlyrelatestointerestincomeondeposits,short-term investments,moneymarketfunds,bankaccountsandonfinancereceivables.

FinancecostsofEUR28.0million(2012:EUR20.0million)mainlyconsistsofnetinterestexpenseonourEurobonds andrelatedinterestrateswaps,interestonleaseobligationsandamortizedfinancingcostsofintotalEUR16.2million (2012:EUR10.8million),andEUR8.9millionlossonthepartialextinguishmentofourEUR600million5.75percent seniornotesdue2017.

InterestoncashpoolsisreportedonagrossbasisintheConsolidatedStatementofProfitorLossunderbothFinance incomeandFinancecosts.Fromaneconomicandlegalperspective,theinterestoncashpoolsofEUR1.9million(2012: EUR4.2million)recordedininterestincomenetsoffagainstthesameamountrecordedininterestexpense.

34. Vulnerability Due to Certain Concentrations

ASMLreliesonoutsidevendorstomanufacturethecomponentsandsubassembliesusedinitssystems,eachof whichisobtainedfromasolesupplieroralimitednumberofsuppliers.ASML'srelianceonalimitedgroupofsuppliers involvesseveralrisks,includingapotentialinabilitytoobtainanadequatesupplyofrequiredcomponentsandreduced controloverpricingandtimelydeliveryofthesesubassembliesandcomponents.Inparticular,fromtimetotime,the numberofsystemsweareabletoproducemaybelimitedbytheproductioncapacityofZeiss.Zeissiscurrentlyour solesupplieroflenses,collectors,andothercriticalopticalcomponentsandiscapableofproducingtheseitemsonlyin limitednumbersandonlythroughtheuseofitsmanufacturingandtestingfacilityinOberkochenandWetzlar,Germany. During2013,ASML'sproductionwasnotlimitedbythedeliveriesfromZeiss.

Businessfailureorinsolvencyofoneofourmaincustomersmayhaveanadverseeffectonourbusiness,financial conditionandprofitorloss.

35. Principal Accountant Fees and Services

DeloittehasservedasourauditorfortheyearsendingDecember31,2013and2012.Thefollowingtablesetsoutthe aggregatefeesforprofessionalauditservicesandotherservicesrenderedbyDeloitteanditsmemberfirmsand/or affiliatesin2013and2012:

	2013			2012
	Deloitte Accountants	Deloitte		Deloitte Accountants	Deloitte
Year ended December 31	B.V.	Network	Total	B.V.	Network	Total
(inthousands)	EUR	EUR	EUR	EUR	EUR	EUR
Auditfeesinrelationtoannualreports	1,559	-	1,559	1,002	-	1,002
Otherauditfees	-	364	364	-	352	352
Audit-relatedfees	120	-	120	149	-	149
Taxfees	-	347	347	-	353	353
Other	-	-	-	-	247	247
Principal accountant fees and services	1,679	711	2,390	1,151	952	2,103

AuditFeesandOtherAuditFees

AuditfeesprimarilyrelatetotheauditofourFinancialStatementsassetoutinourAnnualReport,ourStatutoryAnnual Report,agreeduponproceduresonourquarterlyfinancialresultsandservicesrelatedtostatutoryandregulatoryfilings ofASMLanditssubsidiaries.

Audit-relatedFees

Audit-relatedfeesmainlyrelatedtovariousauditservicesnotrelatedtoourFinancialStatements.

Year ended December 31	2013	2012
(in thousands)	EUR	EUR
CorporateIncomeTaxcomplianceservices	186	123
Taxassistanceforexpatriateemployees	2	79
Othertaxadvisoryandcompliance	159	151
Tax fees	347	353

TheAuditCommitteehasapprovedtheexternalauditplanandrelatedauditfeesfortheyear2013.

Inordertocomplywiththemandatoryfirmrotation,anewauditorwillbeselectedin2014.Theappointmentofanew auditorperJanuary1,2016,willbeproposedforapprovaltothe2015AGM.

36. Customer Co-Investment Program

Overview

Description of Investment Agreements, Shareholder Agreements and NRE Funding Agreements

InconnectionwiththeCCIP,ASMLenteredintoaninvestmentagreement,ashareholderagreementandNREfunding agreementswitheachoftheParticipatingCustomers.Intelisthelargestparticipantintheprogram,withanaggregate fundingcommitmentofEUR829millionandaninvestmentin15percentofourordinaryshares(calculatedgivingeffect toourSyntheticShareBuybackinNovember2012).Adescriptionoftheinvestmentagreement,shareholdersagreement andNREfundingagreementsbetweenASMLandIntelissetoutbelow.TheagreementsbetweenASMLandtheother participants-TSMC(whichacquired5percentofoursharesandmadeanEUR276millionfundingcommitment) andSamsung(whichacquired3percentofoursharesandmadeanEUR276millionfundingcommitment)areon substantiallythesametermsasthoseagreedwithIntel.ShareswereacquiredbyDutchfoundations("Stichtingen") establishedforeachparticipant.

Investment Agreements

PursuanttotheIntelInvestmentAgreement,datedJuly9,2012,ASMLissuedtoIntelStichtingordinarysharesequalto 15percentoftheissuedordinaryshareswithsimultaneousissuancebytheIntelStichtingtoIntelofthecorresponding depositaryreceipts.

PursuanttotheTSMCInvestmentAgreement,datedAugust5,2012,ASMLissuedtoTSMCStichtingordinaryshares equalto5percentoftheissuedordinaryshareswithsimultaneousissuancebytheTSMCStichtingtoTSMCofthe correspondingdepositaryreceipts.

PursuanttotheSamsungInvestmentAgreement,datedAugust27,2012ASMLissuedtotheSamsungStichting ordinarysharesequalto3percentoftheissuedordinaryshareswithsimultaneousissuancebytheSamsungStichting toSamsungofthecorrespondingdepositaryreceipts.

ThesubscriptionpricefortheordinarysharesundertheInvestmentAgreementswasEUR39.91perordinaryshare, whichistheaverageofthevolumeweightedaveragepriceofourshareslistedatNYSEEuronextAmsterdamforthe twentytradingdaysuptoandincludingJuly6,2012.

Baseduponthesubscriptionprice(EUR39.91)includedintheInvestmentAgreements,theequityparticipationofIntel (15percent),TSMC(5percent)andSamsung(3percent)amounttoEUR2,513million,EUR838millionandEUR503 million,respectively.

UndertheIntelInvestmentAgreements,ASMLhasagreedtoindemnifytheParticipatingCustomersandtheiraffiliates forcertainlossesandexpensesrelatedtobreachesofrepresentations,warranties,covenantsandagreementsinthe InvestmentAgreementsandwithrespecttocertainlegalproceedingsrelatedthereto,subjecttocertainlimitations.

Shareholder Agreements

TheShareholderAgreementsbetweenASMLandtheotherprogramparticipants(TSMCandSamsung)areon substantiallythesametermsasthoseagreedwithIntel.

Voting Restrictions

PursuanttotheShareholderAgreement,Intel(andtheIntelStichting)willnotbeentitledtovotetheordinarysharesthat wereacquiredbytheIntelStichtingaspartoftheCCIPoranyotherordinarysharesotherwisetransferredtotheIntel Stichting(underthecircumstancesdescribedunder"Standstill;AdditionalPurchases"below)priortoaShareholder AgreementTerminationEvent(asdefinedbelow),exceptwhenaSuspensionEvent(asdescribedbelow)occursand iscontinuingorwherethefollowingmattersareproposedatanyGeneralMeeting(the"VotingRestrictions"):(i)an issuanceofASMLsharesorgrantofrightstosubscribeforASMLsharesrepresenting25percentormoreoftheissued andoutstandingsharecapitalofASMLortherestrictionorexclusionofpre-emptionrightsrelatingthereto(ineach case,onanaggregatebasisduringthepreceding12months)orthedesignationoftheBoardofManagementasthe authorizedbodytoresolveonthesematters;(ii)anauthorizationtorepurchase25percentormoreofASML'sissued andoutstandingsharecapitalonanaggregatebasisduringthepreceding12months;(iii)theapprovalofasignificant changeintheidentityornatureofASMLorourbusiness,includingatransferofallorsubstantiallyallbusinessorassets ofASMLandoursubsidiariestoathirdparty,theestablishmentorcancellationofalong-lastingcooperationofessential importancewithathirdpartyandanacquisitionordispositionofaninterestinthecapitalorassetsofapersonwith avalueofatleastonethirdoftheassetsofASML(onaconsolidatedbasis);(iv)anamendmenttoASML'sArticlesof AssociationthatwouldmateriallyaffectthespecificvotingrightsofIntel,wouldmateriallyaffecttheidentityornature ofASMLorourbusiness,orwoulddisproportionately(oruniquely)andadverselyaffecttherightsorbenefitsattached toorderivedfromtheordinarysharesheldbyIntelthroughtheIntelStichtingascomparedtotheshareholders;(v)the dissolutionofASML;and(vi)anymergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureof ASMLoritsbusiness.

Standstill, Lock-up and Orderly Market Arrangements

Standstill;AdditionalPurchases

aShareholderAgreementTerminationEvent(asdefinedbelow),followingwhichtimeDepositaryReceiptswillbe exchangedfortheunderlyingASMLshares.IncaseIntelwouldacquireASMLshareswithin18monthsafteranevent describedunder(i)or(ii)above,anyASMLsharesheldbyIntelinexcessof4.99percentoftheoutstandingsharesof ASMLmustbetransferredto(andheldby)theIntelStichting.

Lock-up;OrderlySellDown

Inaddition,Intelmaynot(evenaftertheLock-UpPeriodhasended),withoutwrittenconsentofASML,transferon NYSEEuronextAmsterdam,NASDAQoranothersecuritiesexchangemorethan(i)4percentoftheoutstandingshares ofASMLduringanysixmonthperiod(therelevantpercentageis1.5percentforSamsungand2.5percentforTSMC). TherearealsorestrictionsonIntel'sabilitytotransferASMLsharestocertaincompetitorsorcustomersofASML.

Termination

NRE Funding Agreements

OnJuly9,2012,ASMLandIntelenteredintotwoNREFundingAgreementspursuanttowhichIntelwillsupportASML's R&Dcostsandprojectexpenditures.OneagreementrelatestotheIntel450mmNREFundingAgreementandtheother relatestotheIntelEUVNREFundingAgreement(togetherthe"IntelNREFundingAgreements").Intelhascommitted toprovideEUR553millioninfundingundertheIntel450mmNREFundingAgreementandEUR276millioninfunding undertheIntelEUVNREFundingAgreement,payableovertherespectiveterms(2013-2017)oftheIntelNREFunding Agreements.

OnAugust5,2012,ASMLandTSMCenteredintotheTSMCNREFundingAgreementpursuanttowhichTSMCwill supportASML'sR&Dcostsandprojectexpendituresrelatingtothedevelopmentof450mmlithographyequipmentand EUVplatforms.TSMChascommittedtoprovideEUR276millioninfundingpayableovertheterm(2013-2017)ofthe TSMCNREFundingAgreement.

OnAugust27,2012,ASMLandSamsungenteredintotheSamsungNREFundingAgreementpursuanttowhich SamsungwillsupportASML'sR&Dcostsandprojectexpendituresrelatingtothedevelopmentof300mm/450mmand EUVplatforms.SamsunghascommittedtoprovideEUR276millioninfundingpayableovertheterm(2013-2017)ofthe SamsungNREFundingAgreement.

UndertheNREFundingAgreements,ASMLwillretainsolecontroloverthedevelopmentof450mmphotolithography equipmentandEUVplatformsandwillownallintellectualpropertycreatedbyASMLinconnectiontherewith.TheNRE FundingAgreementsprovidethatifASML,initsreasonablediscretion,determinestoabandoneitherthe450mmorEUV developmentproject,asaresultoftechnicalinfeasibilityorlackofsufficientindustrydemand,orifthethenremaining fundingexceedstheexpenditureestimateforthedevelopmentproject(450mmorEUV)thenthepartiesmayagreeonan alternativedevelopmentproject,andifnoalternativeisagreed,ASMLmayinvoicetheParticipatingCustomersforthe remainingdueportionofcommittedfundingduringeachyearoftheremainingfundingperiodinwhichASML'sactual grossR&DexpendituresexceedaminimumthresholdspecifiedintheNREFundingAgreements.TheNREFunding AgreementswillterminateonDecember31,2017oruponpre-paymentbytheParticipatingCustomeroftheaggregate amountoffundingowedunderitsrespectiveNREFundingAgreement.

Commercial Agreement

OnJuly9,2012,ASMLandIntelenteredintoaCommercialAgreement,pursuanttowhichASMLandIntelestablished acontractualframeworkforInteltopurchaseequipmentrelatedtothe450mmandEUVnext-generationlithography equipment.Underthisagreement,Intelhascommittedtopurchasespecifiednumbersof450mmandEUVtools. Theagreementsetsforthpricingtermsforthetoolsaswellasmilestonesrelatedtoproductdeliveries,andprovides forcertaincommercialdiscountsintheformofcreditsinexchangeforIntel'searlypurchasecommitmentsand volumepurchasecommitmentsandforspecifiedadditionalcreditsintheeventthatcertainschedulesarenotmet.In addition,subjecttocertainconditions,ASMLhasagreedtoinstallsufficientcapacitytomeetIntel'sforecasted450mm lithographyequipmentneedsthrough2022.

ForfurtherdetailsregardingtheshareissuancestotheParticipatingCustomersandtheSyntheticShareBuyback effectuatedinconnectionwithourCCIP,seeNote19.

Development 450mm silicon wafer technology

37. Related Party Transactions

OnJuly9,2012,weannouncedourCCIPtoaccelerateourdevelopmentofEUVtechnologybeyondthecurrent generationandourdevelopmentoffuture450mmsiliconwafertechnology.OneoftheParticipatingCustomers,Intel, agreedtofundEUR829millionforourR&Dprojects.InadditionIntelalsoagreedtoinvestinordinarysharesequalto 15percentofourissuedsharecapital(calculatedgivingeffecttoourSyntheticShareBuybackinNovember2012).Due totheequityinvestment,IntelisconsideredarelatedpartyofASMLasofJuly9,2012.

ThetotalnetsalestoIntel(anditsaffiliates)in2013amountedtoEUR494.7million.ThetotalnetsalestoIntel(and itsaffiliates)fortheperiodfromJuly9,2012toDecember31,2012amountedtoEUR301.7million)whereasthe outstandingbalancesasofDecember31,2013amounttoEUR(182.3)million(December31,2012:EUR65.0million).

Therehavebeennotransactionsduringourmostrecentfiscalyear,andtherearecurrentlynotransactions,between ASMLoranyofitssubsidiaries,andanyothersignificantshareholderandanydirectororofficeroranyrelativeor spousethereofotherthanordinarycoursecompensationarrangements.Duringourmostrecentfiscalyear,therehas beenno,andatpresentthereisno,outstandingindebtednesstoASMLowedorowingbyanydirectororofficerof ASMLoranyassociatethereof.

Forourdisclosuresinrelationtokeymanagementpersonnel,seenote31.

38. Subsequent Events

SubsequenteventswereevaluateduptoFebruary11,2014,whichistheissuancedateofthisAnnualReport2013. Therearenosubsequenteventstoreport.

Veldhoven,theNetherlands

February11,2014

Preparedby TheBoardofManagement¹ : PeterT.F.M.Wennink MartinA.vandenBrink FritsJ.vanHout FrédéricJ.M.Schneider-Maunoury

¹⁾ Mr.Nickl'sappointmenttoASML'sBoardofManagementissubjecttothenotificationoftheAGM,scheduledtobeheldonApril23,2014.

Company Financial Statements

134 CompanyBalanceSheet
135 AbbreviatedCompanyStatementofProfitorLoss
136 NotestotheCompanyFinancialStatements

Company Balance Sheet

(Beforeappropriationofnetincome)

As of December 31	2013	2012
(in thousands)	EUR	EUR

Abbreviated Company Statement of Profit or Loss

Year ended December 31 (in thousands)	2013 EUR	2012 EUR
Netincomefromsubsidiaries	1,202,542	1,255,478
Gain(Loss)aftertaxes	(8,698)	46,869
Net income	1,193,844	1,302,347

Notes to the Company Financial Statements

1. General Information

Thedescriptionofouractivitiesandourstructure,asincludedintheNotestotheConsolidatedFinancialStatements, alsoapplytotheCompanyFinancialStatements.

Inaccordancewitharticle362sub8Part9ofBook2oftheDutchCivilCode,wehavepreparedourCompanyFinancial StatementsinaccordancewithDutchGAAPapplyingtheaccountingprinciplesasadoptedintheConsolidatedFinancial Statements,exceptfortheaccountingforinvestmentsinsubsidiariesandourconsolidatedSPE.Investmentsin subsidiariesandconsolidatedSPEarestatedatnetassetvalueasweeffectivelyexercisecontrolovertheoperational andfinancialactivitiesoftheseinvestments.ThenetassetvalueisdeterminedonthebasisoftheIFRSaccounting principlesappliedbyASMLinitsConsolidatedFinancialStatements.

Inaccordancewitharticle402Part9ofBook2oftheDutchCivilCodetheCompanyStatementofProfitorLossis presentedinabbreviatedform.

2. Summary of Significant Accounting Policies

Significant Accounting Policies

TheaccountingpoliciesusedinthepreparationoftheCompanyFinancialStatementsarethesameasthoseusedin thepreparationoftheConsolidatedFinancialStatements(inaccordancewitharticle362sub8Part9ofBook2ofthe DutchCivilCode).SeetheNotestotheConsolidatedFinancialStatements.Inadditiontothoseaccountingpolicies, thefollowingaccountingpolicyappliestotheCompanyFinancialStatements.TheaccompanyingCompanyFinancial StatementsarestatedinthousandsofEURunlessotherwiseindicated.

Investments in Subsidiaries

Investmentsinsubsidiariesarestatedatnetassetvalueasweeffectivelyexerciseinfluenceofsignificanceoverthe operationalandfinancialactivitiesoftheseinvestments.ThenetassetvalueisdeterminedonthebasisoftheIFRS-EU asappliedinthepreparationoftheConsolidatedFinancialStatements.

3. Investments in Subsidiaries

Changesininvestmentsinsubsidiariesduring2013and2012wereasfollows:

	2013	2012
(in thousands)	EUR	EUR
Balance,January1	6,415,214	5,169,322
Capitalcontributions	2,855,529	6,539
Capitalrepayment	(492,751)	(9,206)
Dividendsreceived	(13,384)	(5,299)
Netincomefromsubsidiaries	1,202,542	1,255,478
Effectofexchangerates	(120,863)	5,927
Derivativefinancialinstruments	(7,646)	(7,547)
Balance, December 31	9,838,641	6,415,214

4. Equity

Changesinequityduring2013and2012wereasfollows(beforeappropriationofnetincome):

		Issued and Outstanding Shares
Notes1	(in thousands)	Number2	Amount EUR	Share Premium EUR	Treasury Shares at Cost EUR	Retained Earnings EUR	Legal Reserves3 EUR	Net Income EUR	Total EUR
	Balance at January 1, 2012	413,669	38,816	920,478	(417,837)	1,525,238	159,039	1,494,071	3,719,805
	Appropriation of net income Components of statement of comprehensive income	-	-	-	-	1,494,071		- (1,494,071)	-
	Netincome	-	-	-	-	-	-	1,302,347	1,302,347
6,19	Foreigncurrencytranslation	-	-	-	-	-	5,927	-	5,927
6,19	Financialinstruments,netoftaxes	-	-	-	-	-	(7,547)	-	(7,547)
	Total comprehensive income	-	-	-	-	-	(1,620)	1,302,347	1,300,727
	CCIP:
19,36	Issuanceofshares	96,566	8,691	3,968,677	-	-	-	-	3,977,368
19,36	Fairvaluedifferences4	-	-	(123,416)	-	-	-	-	(123,416)
19,36	Capitalrepayment5	(93,411)		(8,691) (3,845,261)	125,628	-	-	-	(3,728,324)
19	Purchases of treasury shares	(13,478)	-	-	(535,373)	-	-	-	(535,373)
19	Cancellation of treasury shares	-	(1,030)	-	294,752	(293,722)	-	-	-
24,30,31	Share-based payments	-	-	20,596	-	-	-	-	20,596
24,30	Issuance of shares	3,819	-	(8,106)	66,982	(3,165)	-	-	55,711
19	Dividend paid	-	-	-	-	(188,892)	-	-	(188,892)
19	Development expenditures	-	-	-	-	(192,482)	192,482	-	-
	Balance at December 31, 2012	407,165	37,786	932,968	(465,848)	2,341,048	349,901	1,302,347	4,498,202
	Appropriation of net income Components of statement of comprehensive income	-	-	-	-	1,302,347		- (1,302,347)	-
	Netincome	-	-	-	-	-	-	1,193,844	1,193,844
6,19	Foreigncurrencytranslation	-	-	-	-	-	(122,000)	-	(122,000)
6,19	Financialinstruments,netoftaxes	-	-	-	-	-	(7,646)	-	(7,646)
	Total comprehensive income	-	-	-	-	-	(129,646)	1,193,844	1,064,198
	CCIP:
19,36	Fairvaluedifferences6	-	-	20,956	-	-	-	-	20,956
19	Purchases of treasury shares	(4,614)	-	-	(300,000)	-	-	- -	(300,000)
19	Cancellation of treasury shares	-	(854)	-	349,261	(348,407)	-	-	-
24,30,31	Share-based payments7	-	-	116,821	-	-	-	-	116,821
24,30	Issuance of shares8	38,301	3,282	2,312,360	50,805	(5,744)	-	-	2,360,703
19	Dividend paid	-	-	-	-	(216,085)	-	-	(216,085)
19	Development expenditures	-	-	-	-	(231,523)	231,523	-	-
	Balance at December 31, 2013	440,852	40,214	3,383,105	(365,782)	2,841,636	451,778	1,193,844	7,544,795

1 NotereferencenumbersincludedbelowrelatetothenotestotheConsolidatedFinancialStatements.

2 AsofDecember31,2013,thenumberofissuedshareswas446,822,452.Thisincludesthenumberofissuedandoutstandingsharesof440,852,334 andthenumberoftreasurysharesof5,970,118.AsofDecember31,2012,thenumberofissuedshareswas419,852,467.Thisincludesthenumber ofissuedandoutstandingsharesof407,165,221andthenumberoftreasurysharesof12,687,246.

3 Legalreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.Seebelow forfurtherinformation.

4 ThedifferencebetweenthefairvalueofthesharesandthesubscriptionpriceofthesharesissuedtotheparticipatingcustomersintheCCIP. 5 In2012,aspartofthecapitalrepayment,EUR3,728.3millionofequitywasreturnedtoourshareholders(excludingParticipatingCustomersinthe

CCIP)andthenumberofshareswasreducedby23percent.Seebelowforfurtherinformation. 6 EUR21.0millionisrecognizedtoincreaseequitytothefairvalueofthesharesissuedtotheParticipatingCustomersintheCCIP.Theportionofthe

NREfundingallocabletothesharesisrecognizedovertheNREFundingAgreementsperiod(2013-2017). 7 Share-basedpaymentsincludeanamountofEUR66.1millioninrelationtothefairvalueofunvestedequityawardsexchangedaspartofacquisition ofCymer.

8 Issuanceofsharesincludes36,464,576ordinarysharesissuedinrelationtotheacquisitionofCymerforatotalfairvalueofEUR2,346.7million. ThedifferenceofEUR1.0millionwiththefairvalueofsharesasdisclosedinNote4isexplainedby14,533sharesstilltobeissuedtoformerCymer shareholders.

Share Capital

ASML'sauthorizedsharecapitalamountstoEUR126,000,000andisdividedinto:

700,000,000CumulativePreferenceShareswithanominalvalueofEUR0.09each;
699,999,000OrdinaryShareswithanominalvalueofEUR0.09each;and
9,000OrdinarySharesBwithanominalvalueofEUR0.01each.

Shares Issued as a Result of the Acquisition of Cymer

Synthetic Share Buyback

AttheEGMheldonSeptember7,2012,severalchangesintheArticlesofAssociationofASMLwereadopted,in connectionwiththeSyntheticShareBuybackeffectuatedinconnectionwiththeCCIP.

Consequently,onNovember24,2012,theArticlesofAssociationwereamendedasfollows.Uponthefirstamendment theordinarysharestobeheldforthebenefitoftheparticipantstotheCCIPwereconvertedintoordinarysharesM andallotherordinaryshareswereconvertedintoordinarysharesA.Uponthesecondamendment,theparvalueper ordinaryshareAwasincreasedfromEUR0.09toEUR9.24attheexpenseofthesharepremiumreserve.Uponthe thirdamendment,thenominalvalueperordinaryshareAwasreducedtoanamountofEUR0.06,bydecreasingthe nominalvalueperordinaryshareAbyanamountofEUR9.18,whichresultedinarepaymentofthesameamountper sharetoholdersofordinarysharesintowhichtheordinarysharesAwereconverted.Thefourthamendmentprovided fortheconsolidationoftheordinarysharesAthroughtheexchangeofeach100ordinarysharesfor77ordinaryshares, resultinginanincreaseofthenominalvalueperordinarysharefromEUR0.06toEUR0.09,wherebytheaggregate differencewasbookedattheexpenseofthesharepremiumreserve.Thefifthandlastamendmentprovidedforthe deletionoftheshareclassMforparticipantstotheCCIPandtheshareclassAfortheothershareholders.Theordinary sharesMandAwereconvertedthereafterintoordinaryshareswithoutaspecificlettermarkattachedtoit.These amendmentsinsubstanceconstituteaSyntheticShareBuybackinwhichweeffectivelyrepurchased93,411,216shares atanaveragepriceofEUR39.91foratotalamountofEUR3,728.3million.ThedifferenceofEUR125.6millionbetween thecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR3,853.9million relatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuyback.

Shares Issued in Customer Co-Investment Program

Ordinary Shares

EuroclearNederlandorthroughtheDTCcannotholdfractionalshares.Anordinaryshareentitlestheholderthereofto castninevotesintheGeneralMeetingofShareholders.AtourAGMheldonApril24,2013,theBoardofManagement wasauthorizedfromApril24,2013throughOctober24,2014,subjecttotheapprovaloftheSupervisoryBoard,to issuesharesand/orrightstheretorepresentinguptoamaximumof5.0percentofourissuedsharecapitalatApril24, 2013,plusanadditional5.0percentofourissuedsharecapitalatApril24,2013thatmaybeissuedinconnectionwith mergers,acquisitionsand/or(strategic)alliances.

Ordinary Shares B

Cumulative Preference Shares

Legal Reserves

Changesinlegalreservesduring2013and2012wereasfollows:

(in thousands)	Hedging reserve EUR	Currency translation reserve EUR	Reserve for capitalized development expenditures EUR	Total EUR
Balance at January 1, 2012	2,984	(103,567)	259,622	159,039
Components of statement of comprehensive income:
Foreign currency translation:
Gain(Loss)ontranslationofforeignoperations	-	5,927	-	5,927
Financial instruments, net of taxes:
Gain(Loss)onderivativefinancialinstruments	214	-	-	214
Transferstonetincome	(7,761)	-	-	(7,761)
Development expenditures	-	-	192,482	192,482
Currency translation on development expenditures	-	1,119	(1,119)	-
Balance at December 31, 2012	(4,563)	(96,521)	450,985	349,901
Components of statement of comprehensive income:
Foreign currency translation:
Gain(Loss)ontranslationofforeignoperations	-	(122,000)	-	(122,000)
Financial instruments, net of taxes:
Gain(Loss)onderivativefinancialinstruments	(5,370)	-	-	(5,370)
Transferstonetincome	(2,276)	-	-	(2,276)

Development expenditures	-	-	231,523	231,523
Currency translation on development expenditures	-	4,570	(4,570)	-
Balance at December 31, 2013	(12,209)	(213,951)	677,938	451,778

Hedgingreserverepresentshedginggainsandlossesontheeffectiveportionofcashflowhedges.

Appropriation of Net Income

For2013,aproposaltodeclareadividendofEUR0.61perordinaryshareofEUR0.09nominalvaluewillbesubmitted totheAGMtobeheldonApril23,2014.

Share Buyback Programs

OnApril24,2013,theAGMauthorizedtherepurchaseofuptoamaximumoftwotimes10.0percentofourissuedshare capitalasofthedateofauthorizationthroughOctober24,2014.

Thefollowingtableprovidesasummaryofourrepurchasedsharesin2013:

Period	Total number of shares purchased	Average price paid per Share (EUR)	Total number of shares purchased as part of publicly announced plans or programs	Maximum value of shares that may yet be purchased under the program (EUR)
April18-30,2013	297,500	55.35	297,500	983,534,770
May2-31,2013	389,974	61.76	687,474	959,449,401
June1-30,2013	749,434	60.39	1,436,908	914,192,630
July1-31,2013	321,486	65.20	1,758,394	893,232,250
August1-31,2013	283,097	67.83	2,041,491	874,028,834
September1-30,2013	179,146	69.06	2,220,637	861,656,533
October3-31,2013	556,443	69.34	2,777,080	823,072,791
November1-30,2013	962,146	66.76	3,739,226	758,841,727
December1-31,2013	874,953	67.25	4,614,179	700,000,036
Total	4,614,179	65.02

5. Personnel

TheaveragenumberofemployeesemployedbytheASMLHoldingN.V.atyear-end2013wasfive(2012:five).

AsaresultofenactedDutchtaxlegislation('WetuitwerkingfiscalemaatregelenBegrotingsakkoord2013')during2013, theCompanyincurredanexpenseofEUR3.1million(2012:EUR2.4million)inrelationtothe(former)membersofthe BoardofManagement.

ASMLdoesnotconsidertheDutchTaxlegislation('WetuitwerkingfiscalemaatregelenBegrotingsakkoord2013')tobea remunerationoranemployeebenefit.Forinformationregardingtheremunerationofthe(former)membersoftheBoard ofManagementandMr.NicklreferenceismadetoNote31totheConsolidatedFinancialStatements.

6. Principal Accountant Fees and Services

Forinformationregardingauditor'sfees,werefertonote35totheConsolidatedFinancialStatements.

7. Commitments and Contingencies

ASMLHoldingN.V.hasassumedjointandseveralliabilitiesinaccordancewitharticle403Part9ofBook2ofTheDutch CivilCodewithrespecttothefollowingDutchsubsidiaries:ASMLNetherlandsB.V.Furthermore,ASMLHoldingN.V.has guaranteedallliabilitiesoutstandingatDecember31,2013,untilallaresatisfiedinfull,inaccordancewithsection479C oftheUKCompaniesAct2006withrespecttoitsoverseassubsidiaryASML(UK)Ltd(registerednumberSC176574) andaccordingly,undersection479AofthatActASML(UK)Ltdisexemptfromtherequirementtohaveitsfinancial statementsaudited.

FromtimetotimeweprovideguaranteestothirdpartiesinconnectionwithtransactionsenteredintobyourDutch subsidiariesintheordinarycourseofbusiness.

ASMLHoldingN.V.formsataxunitytogetherwithcertainofitsDutchsubsidiaries,forpurposesofDutchtaxlawsand areassuchjointlyandseverallyliableforthetaxdebtsoftheunity:ThefiscalunitycomprisesasofDecember31,2012 ofASMLHoldingN.V.,ASMLNetherlandsB.V.andASMLSystemsB.V.

8. Amounts due from/due to Subsidiaries

Interestonamountsduefromsubsidiariesiscalculatedbasedonmonthlybaseratesplusamarket-conformmark-up, interestonamountsduetosubsidiariesiscalculatedbasedonmonthlybaserate,minusasmallfee,withaminimumof 0percent.Allbalancesduefrom/duetosubsidiariesarerepayableondemand.

Veldhoven,theNetherlands February11,2014

Preparedby TheBoardofManagement¹ : PeterT.F.M.Wennink MartinA.vandenBrink FritsJ.vanHout FrédéricJ.M.Schneider-Maunoury

¹⁾ Mr.Nickl'sappointmenttoASML'sBoardofManagementissubjecttothenotificationoftheAGM,scheduledtobeheldonApril23,2014

Other Information

TheadditionalinformationbelowincludesabriefsummaryofthemostsignificantprovisionsofourArticlesof Association.SeeNote19oftheConsolidatedFinancialStatements.

Adoption of Financial Statements

TheBoardofManagementwillsubmitourstatutoryannualreport,togetherwithacertificateoftheauditorinrespect thereof,totheGeneralMeetingofShareholdersforadoption.

Statements Appropriation and Determination of Net Income

DividendsmaybepayableoutofnetincomeorretainedearningsshownintheCompanyFinancialStatementsas adoptedbyourGeneralMeetingofShareholders,afterpaymentfirstof(accumulated)dividendsonanyoutstanding cumulativepreferenceshares.Atitsdiscretion,however,subjecttostatutoryprovisions,theBoardofManagementmay, withthepriorapprovaloftheSupervisoryBoard,distributeoneormoreinterimdividendsontheordinarysharesbefore theFinancialStatementsforanyfinancialyearhavebeenadoptedbytheGeneralMeetingofShareholders.TheBoard ofManagement,withtheapprovaloftheSupervisoryBoard,maydecidethatallorpartofournetincomeshouldbe retainedandnotbemadeavailablefordistributiontoshareholders,exceptfordividendsonthecumulativepreference shares.Thosenetincomesthatarenotretainedmaybedistributedtoshareholderspursuanttoashareholders' resolution,providedthatthedistributiondoesnotreduceequitybelowtheamountofreservesrequiredbyDutchlaw. ExistingreservesthataredistributableinaccordancewithDutchlawmaybemadeavailabletotheGeneralMeetingof ShareholdersfordistributionuponaproposalbytheBoardofManagement,subjecttopriorapprovaloftheSupervisory Board.Asregardscashpayments,therightstodividendsanddistributionsshalllapseifsuchdividendsordistributions arenotclaimedwithinfiveyearsfollowingthedayafterthedateonwhichtheyweremadeavailable.

Annually,theBoardofManagementwillassesstheamountofdividendthatwillbeproposedtotheAnnualGeneral MeetingofShareholders.For2012,adividendwasdeclaredofEUR0.53perordinaryshareofEUR0.09nominalvalue whichwaspaidin2013.

AproposalwillbesubmittedtotheAnnualGeneralMeetingofShareholdersonApril23,2014todeclareadividendfor 2013ofEUR0.61perordinaryshareofwithaEUR0.09nominalvalue.

Voting Rights

WearesubjecttotherelevantprovisionsofDutchlawapplicabletolargecorporations(the"structuurregime").These provisionshavetheeffectofconcentratingcontrolovercertaincorporatedecisionsandtransactionsinthehandsofthe SupervisoryBoard.MembersoftheBoardofManagementareappointedbytheSupervisoryBoard.TheSupervisory BoardshallnotifytheGeneralMeetingofShareholdersofintendedappointmentstotheBoardofManagement. GeneralMeetingsofShareholderswillbeheldatleastonceayear.Wedonotsolicitfromornominateproxiesforour shareholders.However,shareholdersandotherpersonsentitledtoattendGeneralMeetingsofShareholdersmaybe representedbyproxies.

EGMsmaybeheldasoftenasdeemednecessarybytheSupervisoryBoardorBoardofManagementandmustbeheld ifoneormoreordinaryorcumulativepreferenceshareholdersjointlyrepresentingatleasttenpercentoftheissued sharecapitalmakeawrittenrequesttothateffecttotheSupervisoryBoardandtheBoardofManagementspecifyingin detailthebusinesstobedealtwith.

ResolutionsareadoptedatGeneralMeetingsofShareholdersbyanabsolutemajorityofthevotescast(exceptwherea differentproportionofvotesarerequiredbytheArticlesofAssociationorDutchlaw)andtherearegenerallynoquorum requirementsapplicabletosuchmeetings.IntheGeneralMeetingofShareholderseachshareconferstherighttocast onevote.

Subsequent Events

SubsequenteventswereevaluateduptoFebruary11,2014,whichistheissuancedateofthisAnnualReport2013. Therearenosubsequenteventstoreport.

Independent Auditor's Report

To:TheGeneralMeetingofASMLHoldingN.V.

Report on the financial statements

Wehaveauditedtheaccompanyingfinancialstatementsfortheyear2013ofASMLHoldingN.V.,Veldhoven.The financialstatementsincludetheconsolidatedfinancialstatementsandthecompanyfinancialstatements.The consolidatedfinancialstatementscomprisetheconsolidatedstatementoffinancialpositionasperDecember31,2013, theconsolidatedstatementofprofitorloss,theconsolidatedstatementofcomprehensiveincome,changesinequity andcashflowsfortheyearthenended,andnotes,comprisingasummaryofthesignificantaccountingpoliciesand otherexplanatoryinformation.ThecompanyfinancialstatementscomprisethecompanybalancesheetasperDecember 31,2013,thecompanystatementofprofitorlossfortheyearthenendedandthenotes,comprisingasummaryofthe accountingpoliciesandotherexplanatoryinformation.

Management's responsibility

Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewith InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheDutch CivilCode,andforthepreparationofthemanagementboardreportinaccordancewithPart9ofBook2oftheDutch CivilCode.Furthermoremanagementisresponsibleforsuchinternalcontrolasitdeterminesisnecessarytoenablethe preparationofthefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor's responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconductedouraudit inaccordancewithDutchlaw,includingtheDutchStandardsonAuditing.Thisrequiresthatwecomplywithethical requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsare freefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancial statements.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksof materialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity'spreparationandfair presentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances, butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity'sinternalcontrol.Anauditalso includesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimates madebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouraudit opinion.

Opinion with respect to the consolidated financial statements

Inouropinion,theconsolidatedfinancialstatementsgiveatrueandfairviewofthefinancialpositionofASML HoldingN.V.asperDecember31,2013andofitsresultanditscashflowsfortheyearthenendedinaccordancewith InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheDutch CivilCode.

Opinion with respect to the company financial statements

Inouropinion,thecompanyfinancialstatementsgiveatrueandfairviewofthefinancialpositionofASMLHoldingN.V. asperDecember31,2013andofitsresultfortheyearthenendedinaccordancewithPart9ofBook2oftheDutch CivilCode.

Report on other legal and regulatory requirements

PursuanttothelegalrequirementunderSection2:393sub5ateandfoftheDutchCivilCode,wehavenodeficiencies toreportasaresultofourexaminationwhetherthemanagementboardreport,totheextentwecanassess,hasbeen preparedinaccordancewithPart9ofBook2ofthisCode,andwhethertheinformationasrequiredunderSection2:392 sub1atb-hhasbeenannexed.Furtherwereportthatthemanagementboardreport,totheextentwecanassess,is consistentwiththefinancialstatementsasrequiredbySection2:391sub4oftheDutchCivilCode.

DeloitteAccountantsB.V.

/s/G.M.Dekker

Eindhoven,TheNetherlands February11,2014

Information and Investor Relations

Financial Calendar

April 16, 2014

AnnouncementofFirstQuarterresultsfor2014

April 23, 2014

GeneralMeetingofShareholders Auditorium,ASMLBuilding7, DeRun6665 Veldhoven,theNetherlands

July 16, 2014 AnnouncementofSecondQuarterresultsfor2014

October 15, 2014

AnnouncementofThirdQuarterresultsfor2014

Fiscal Year ASML'sfiscalyearendsonDecember31,2014

Listing

TheordinarysharesofASMLarelistedontheofficialmarketoftheEuronextAmsterdambyNYSEEuronextAmsterdam andintheUnitedStatesontheNASDAQ,underthesymbol"ASML".ASML'sordinarysharesmayalsotradeonother stockexchangesfromtimetotime,althoughASMLhasnotappliedforlistingsonthoseexchangesanddoesnot endorseandmaynotbenotifiedofsuchtrading.

Investor Relations

ASMLInvestorRelationswillsupplyinformationorcopiesoftheAnnualReportonForm20-FfiledwiththeUS SecuritiesandExchangeCommissionandtheStatutoryAnnualReport.TheseAnnualReports,quarterlyreleasesand otherinformationarealsoavailableonourwebsite(www.asml.com).

ASML Worldwide Contact Information

Corporate Headquarters

DeRun6501 5504DRVeldhoven TheNetherlands

Mailing Address

P.O.Box324 5500AHVeldhoven TheNetherlands

United States Main Offices

2650WGeronimoPlace Chandler,AZ85224 U.S.A.

77DanburyRoad Wilton,CT06897 U.S.A.

17075ThornmintCourt SanDiego,CA92127 U.S.A

Asia Main Office 17thFloorSuite1702-3 Queen'sroadCentral100 HongKong

Corporate Communications phone:+31402687870 email:[email protected]

Investor Relations

phone:+31402683938 email:[email protected]

Formoreinformationpleasevisitour websitewww.asml.com

Definitions

Name	Description
AFM	AutoriteitFinanciëleMarkten;theNetherlandsAuthorityfortheFinancialMarkets
AFS	Available-for-Sale
AGM	AnnualGeneralMeetingofShareholders
ArF	ArgonFluoride
ArFi	ArgonFluorideImmersion
ASML	ASMLHoldingN.V.anditssubsidiaries
ASP	Averagesellingprice
Brion	BrionTechnologies,Inc.
Canon	CanonKabushikiKaisha
CCIP	CustomerCo-InvestmentProgram
CD	CriticalDimension
CEO	ChiefExecutiveOfficer
CFO	ChiefFinancialOfficer
CGU	CashGeneratingUnit
CGUASMLexcluding CLS	CashGeneratingUnitASMLexcludingCymerLightSources
CGUCLS	CashGeneratingUnitCymerLightSources
CMO	ChiefMarketingOfficer
Code	DutchCorporateGovernanceCode
CodeofConduct	Codeofethicsandconduct
CODM	ChiefOperatingDecisionMaker
Commission	TheUnitedStatesSecuritiesandExchangeCommission
Company	ASMLHoldingN.V.
COSO	CommitteeofSponsoringOrganizationsoftheTreadwayCommission
CPO	ChiefProgramOfficer
CRMC	CapitalResearch&ManagementCompany
Cross-License TransitionPeriod	TheperiodbetweenJanuary1,2010andDecember31,2014
CRSB	CorporateRiskandSustainabilityBoard
CTO	ChiefTechnologyOfficer
CustomerStichtingen	IntelStichtingandTSMCStichtingjointlyreferred.SharesheldbyParticipatingCustomersin theCCIP,areheldthroughFoundationsthatissuedtotheParticipatingCustomersdepository receiptsrepresentingsharesheldbytheseFoundations
Cymer	FormerlyknownasCymerInc.
DeNederlandsche Bank	theDutchcentralbank,whichisthesupervisorofallpensioncompaniesintheNetherlands
Deloitte	DeloitteAccountantsB.V.
DPT	Doublepatterningtechnology
DTC	DepositaryTrustCompany
DutchGAAP	AccountingprinciplesgenerallyacceptedintheNetherlands
EGM	ExtraordinaryGeneralMeetingofShareholders

Name	Description
EU	EuropeanUnion
EUR	Euros
Euro	Euros
Eurobonds	OurEUR600million5.75percentseniornotesdue2017andourEUR750million3.375percent seniornotesdue2023
EuroclearNederland	NederlandsCentraalInstituutvoorGiraalEffectenverkeerB.V.
EUV	ExtremeUltraviolet
EVP	ExecutiveVicePresident
FAT	FactoryAcceptanceTest
FMSA	FinancialMarketsSupervisionAct('Wetophetfinancieeltoezicht'(Wft))
ForeignCurrency	Currencyotherthanthecurrencyoftheprimaryeconomicenvironmentinwhichtheentity operates
Foundation	StichtingPreferenteAandelenASML
FTEs	Full-timeequivalents
FunctionalCurrency	Thecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates
holisticlithography	Optimizethescannerperformancebytakenintoaccounttheentirechipcreationprocess,from designtovolumemanufacturing
IC	Intercircuit
IFRS	InternationalFinancialReportingStandards
IFRS-EU	InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion
Intel	IntelCorporation
Intel450mmNRE FundingAgreement	Agreementrelatedtothedevelopmentof450mmlithographyequipment
IntelEUVNREFunding Agreement	AgreementrelatedtothedevelopmentofEUVlithographyequipment
IntelInvestment Agreement	TheinvestmentagreementbetweenASMLandIntel
IntelNREFunding Agreements	TheIntelFundingAgreementsrelatedtothedevelopmentof450mmandEUVlithography equipment
IntelStichting	StichtingAdministratiekantoorMAKTSJAB
KPI	KeyPerformanceIndicator
KrF	KryptonFluoride
Logic	Micro-processormanufacturersandFoundries
Memory	NAND-FlashmemoryandDRAMmemorychipmakers
NASDAQ	NASDAQStockMarketLLC
NID	NotionalInterestDeduction
Nikon	NikonCorporation
NikonCross-License Agreement	ApatentCross-LicenseagreementbetweenNikon,ASMLandZeiss,relatedtolithography equipmentusedtomanufacturesemiconductordevices
nm	Nanometer(onebillionthofameter)
NPV	NetPresentValue
NRE	NonRecurringEngineering
NREFunding Agreements	TheIntelNREFundingAgreements,theTSMCNREFundingAgreement,andtheSamsungNRE FundingAgreement
NXE	NXEplatform;anewplatformutilizingtheconceptsoftheTWINSCANplatformwithcomplete newtechnologiesinthreeareas:lightsource,lenssystem,andvacuumbody
NXE:3100	Second-generationEUVsystems

Name	Description
NXE:3300B	Third-generationEUVsystems
NXT	TWINSCANNXTsystems;animprovedversionoftheTWINSCANsystems,introducingnew stagesandstagepositioncontroltechnology,whichenablesimprovedimagingandoverlay.
OCI	OtherComprehensiveIncome
	Participatingcustomers CollectiveoftheparticipantsoftheCustomerCo-InvestmentProgram;IntelCorporation ("Intel"),TaiwanSemiconductorManufacturingCompanyLtd.("TSMC")andSamsung ElectronicsCorporation("Samsung")
PME	BedrijfstakpensioenfondsMetalektro
PreferenceShare Option	Anoptiontoacquirecumulativepreferencesharesinourcapital
R&D	ResearchandDevelopment
RDA	ResearchandDevelopmentDeduction("ResearchandDevelopmentAftrek")
RecoverableAmount	Thehigheramountoffairvaluelesscoststosellandvalueinuse
Samsung	SamsungElectronicsCorporation
SamsungInvestment Agreement	TheinvestmentagreementbetweenASMLandSamsung
SamsungNREFunding Agreement	ASMLandSamsungenteredintotheSamsungNREfundingagreement
SEC	TheUnitedStatesSecuritiesandExchangeCommission
SG&A	Selling,GeneralandAdministrative
	ShareholderAgreement InconnectionwiththeissuanceofsharespursuanttotheIntelInvestmentAgreement,on September12,2012ASML,IntelandtheIntelStichtingenteredintoashareholderagreement (werefertopage51)
SNC	SelectionandNominationCommittee
SOX404	Section404oftheSarbanes-OxleyActof2002
SPE	SpecialPurposeEntity
SPEShareholders	SyndicateofthreebankssolelyforthepurposeofleasingtheheadquarterinVeldhoven
STI	Short-termincentive
theIntelInvestment Agreement	TheinvestmentagreementbetweenASMLandIntel
TSMC	TaiwanSemiconductorManufacturingCompanyLtd.
TSMCInvestment Agreement	TheinvestmentagreementbetweenASMLandTSMC
TSMCNREFunding Agreement	ASMLandTSMCenteredintotheTSMCNREfundingagreement
TSMCStichting	StichtingAdministratiekantoorTSMC
U.S.dollars	UnitedStatesdollars
USGAAP	GenerallyacceptedaccountingprinciplesintheUnitedStatesofAmerica
USD	UnitedStatesdollars
VLSIResearch	Anindependentindustryresearchfirmthatsurveyedcustomersrepresenting95.0percentofthe world'stotalsemiconductormarket
WACC	WeightedAverageCostofCapital
Wavelength	Thefrequencyoflightgoingthroughprojectionlenses;theshorterthewavelength,thesmaller theline-widthandthefinerthepatternontheIC
YieldStar	Advancedwafermetrologysystem
Zeiss	CarlZeissSMTAG

AI assistant

ASML Holding N.V. — Annual Report 2013

3813_10-k_2014-02-12-085500_189a8c84-1e08-4cf3-ad3c-5fddd2eab4e7.pdf

StatutoryAnnual Report2013

Contents

Board of Management1

Peter T.F.M. Wennink (1957)

Martin A. van den Brink (1957)

Frits J. van Hout (1960)

Frédéric J.M. Schneider-Maunoury (1961)

Supervisory Board

Arthur P.M. van der Poel (1948)

Fritz W. Fröhlich (1942)

Hendrika (Ieke) C.J. van den Burg (1952)

OB Bilous (1938)

Pauline F.M. van der Meer Mohr (1960)

Wolfgang H. Ziebart (1950)

Clara (Carla) M.S. Smits-Nusteling (1966)

Douglas A. Grose (1950)

Supervisory Board Report

Overview of 2013

Meetings and Activities of the Supervisory Board

Composition of the Supervisory Board

Supervisory Board Committees

Audit Committee

Selection and Nomination Committee

Remuneration Committee

Technology and Strategy Committee

Remuneration of the Supervisory Board

Composition of the Board of Management

Remuneration of the Board of Management

General

Outline 2013 remuneration report

Gratitude to ASML Employees

Information on Supervisory Board Members

C.M.S. Smits-Nusteling Gender :Female Age :47

A.P.M. van der Poel

W.H. Ziebart

Profession :FormerPresidentandCEOofInfineonTechnologiesA.G. Principalposition :GroupEngineeringDirector,JaguarLandRoverLimited Otherrelevantpositions :ChairmanoftheSupervisoryBoardofNordexSE

Corporate Governance Paragraph

I. General1

II. Board of Management

Role and Procedure

Appointment, Other Functions

Internal Risk Management and Control Systems, External Factors

Code of Conduct

Remuneration of the Board of Management

Performance Criteria

Insider Trading

Indemnification

Conflicts of Interest

III. Supervisory Board

Role and Procedure

Meetings and Activities of the Supervisory Board

The Rules of Procedure

Independence

Expertise, Composition, Appointment

Role of the Chairman of the Supervisory Board and the Company Secretary

Composition and Role of the Four Committees of the Supervisory Board

AuditCommittee

RemunerationCommittee

SelectionandNominationCommittee

TechnologyandStrategyCommittee

Conflict of Interest

Remuneration of the Supervisory Board

IV. Shareholders and General Meeting of Shareholders

Powers

Logistics of the General Meeting of Shareholders

Information to the Shareholders

Relationship with Institutional Investors

V. The Audit of Financial Reporting and the Position of the Internal and External Auditor Function

Financial Reporting

Appointment, Role, Assessment of the Functioning of the External Auditor, and the Auditor's Fee

Internal Audit Function

VI. Required Information Article 10 Takeover Directive

General

Share Capital

Shares Issued as a Result of the Acquisition of Cymer

Shares Issued in Customer Co-Investment Program

Synthetic Share Buyback

ASML Holding N.V. Annual Report 2013

Board of Management¹

I. General¹