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ASML Holding N.V. Interim / Quarterly Report 2011

Jul 13, 2011

3813_ir_2011-07-13-104200_45e1d24f-a8cd-4706-92a5-836660d2d910.pdf

Interim / Quarterly Report

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Statutory Interim Report for the six-month period ended June 26, 2011

ASML Holding N.V. Statutory Interim Report for the six-month period ended June 26, 2011

Contents

  • 6 Introduction
  • 7 Interim Management Board Report
  • 12 Managing directors' statement
  • 13 Consolidated Condensed Interim Financial Statements
  • 29 Other Information

Thisreportcomprisesregulatedinformationwithinthemeaningof articles1:1and5:25doftheDutchActonFinancialSupervision (Wetophetfinancieeltoezicht).

Inthisreportthename"ASML"issometimesusedforconvenienceand referstoASMLHoldingN.V.and/oranyofitssubsidiaries,asappropriate. Thenameisalsousedwherenousefulpurposeisservedbyidentifying theparticularcompanyorcompanies.

©2011,ASMLHoldingN.V.AllRightsReserved

Introduction

DearShareholder,

ASMLHoldingN.V.(ASML)todaypublisheditsStatutoryInterimReportforthesix-monthperiodendedJune26, 2011.ThisreportincludesanInterimManagementBoardReport,aManagingDirectors'StatementandConsolidated CondensedInterimFinancialStatementspreparedinaccordancewithIAS34.

TheStatutoryInterimReportcomprisesregulatedinformationwithinthemeaningoftheDutchActonFinancial Supervision(Wet op het financieel toezicht).

Today,ASMLalsopublishedits2011second-quarterresultsaccordingtoUnitedStatesGenerallyAcceptedAccounting Principles("U.S.GAAP")andInternationalFinancialReportingStandards("IFRS").

Veldhoven,July13,2011

Interim Management Board Report

About ASML

ASMLHoldingN.V.("ASML"orthe"Company")isoneoftheworld'sleadingprovidersoflithographysystemsforthe semiconductorindustry,manufacturingcomplexmachinesthatarecriticaltotheproductionofintegratedcircuits("ICs") ormicrochips.ASMLdesigns,develops,integrates,marketsandservicestheseadvancedsystems,whichcontinue tohelpitscustomers-thechipmakers-reducethesizeandincreasethefunctionalityofmicrochipsandconsumer electronicequipment.

HeadquarteredinVeldhoven,theNetherlands,ASMLoperatesglobally,withactivitiesinEurope,theUnitedStatesand Asia.AsofJune26,2011,weemployed7,697payrolland2,159temporaryemployees(measuredinfull-timeemployees "FTEs").ASMLoperatesin16countriesthroughover55salesandservicelocations.

Inthefirsthalfof2011,wegeneratednetsalesofEUR2,981.6millionandanoperatingincomeofEUR922.2million. Netincomeforthefirsthalfof2011amountedtoEUR826.9million,representinganetincomeperordinaryshareof EUR1.91.

BelowweprovideanoverviewoftherisksanduncertaintiestheCompanyfacesforthesecondhalfof2011,followedby theASMLoperationsupdate.

Risk Factors

Inconductingourbusiness,wefacemanyrisksthatmayinterferewithourbusinessobjectives.Someoftheserisks relatetoouroperationalprocesses,whileothersrelatetoourbusinessenvironment.Itisimportanttounderstandthe natureoftheserisksandtheimpacttheymayhaveonourbusiness,financialconditionandresultsofoperations.Some ofthemorerelevantrisksaredescribedbelow.TheserisksarenottheonlyonesthatASMLfaces.Somerisksmaynot yetbeknowntoASMLandcertainrisksthatASMLdoesnotcurrentlybelievetobematerialcouldbecomematerialin thefuture.TheCompanyhasassessedtherisksforthesecondhalfof2011andbelievesthattherisksidentifiedarein linewiththosepresentedintheStatutoryAnnualReport2010.Foradetaileddescriptionoftherisksdefinedbelow,we refertotheStatutoryAnnualReport2010.

Strategic risks

• Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberofproducts.

Risks related to the semiconductor industry

  • Thesemiconductorindustryishighlycyclicalandwemaybeadverselyaffectedbyanydownturn;
  • Ourbusinesswillsufferifwedonotrespondrapidlytocommercialandtechnologicalchangesinthesemiconductor industry;
  • Wefaceintensecompetition.

Governmental, legal and compliance risks

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

Operational risks

  • Thenumberofsystemswecanproduceislimitedbyourdependenceonalimitednumberofsuppliersofkey components;
  • Thepaceofintroductionofournewproductsisacceleratingandisaccompaniedbypotentialdesignandproduction delaysandbysignificantcosts;
  • Wearedependentonthecontinuedoperationofalimitednumberofmanufacturingfacilities;
  • Wemaybeunabletomakedesirableacquisitionsortointegratesuccessfullyanybusinessesweacquire;
  • Ourbusinessandfuturesuccessdependonourabilitytoattractandretainasufficientnumberofadequately educatedandskilledemployees.

Financial risks

  • Ahighpercentageofnetsalesisderivedfromafewcustomers;
  • Fluctuationsinforeignexchangeratescouldharmourresultsofoperations.

Risks related to our ordinary shares

  • Wemaynotdeclarecashdividendsatallorinanyparticularamountsinanygivenyear;
  • Thepriceofourordinarysharesisvolatile;
  • Restrictionsonshareholderrightsmaydilutevotingpower.

Financial Risk Management

ASMLisexposedtoavarietyoffinancialrisks:marketrisks(includingforeigncurrencyexchangeriskandinterestrate risk),creditriskandliquidityrisk.Theoverallriskmanagementprogramfocusesontheunpredictabilityoffinancial marketsandseekstominimizepotentialadverseeffectsontheCompany'sfinancialperformance.SeeNote4ofthe consolidatedcondensedinterimfinancialstatementsandtheCompany'sStatutoryAnnualReport2010.

ASML Operations Update

Setforthbelowareourconsolidatedincomestatementdataonsemi-annualbasis:

2010 2011 For the six-month period ended June, 26, 2011 and June, 27, 2010
EUR EUR (inmillions)
1,810.5 2,981.6 Totalnetsales
1,124.6 1,696.2 Costofsales
685.9 1,285.4 Grossprofitonsales
176.3 258.4 Researchanddevelopmentcosts
83.0 104.8 Selling,generalandadministrativecosts
426.6 922.2 Operatingincome
(9.4) 0.7 Interestincome(expense),net
417.2 922.9 Incomebeforeincometaxes
(63.3) (96.0) Provisionforincometaxes
353.9 826.9 Netincome

Thefollowingtableshowsasummaryofkeyfinancialfiguresonsemi-annualbasis:

2010 2011
1,810.5 2,981.6 Netsales(EURmillion)
1,554.6 2,618.0 Netsystemsales(EURmillion)
255.9 363.6 Netserviceandfieldoptionsales(EURmillion)
77 126 Totalsalesofsystems(inunits)
58 114 Totalsalesofnewsystems(inunits)
19 12 Totalsalesofusedsystems(inunits)
37.9 43.1 Grossprofitonsalesasapercentageofnetsales
20.2 20.8 Averagesellingpriceoftotalsystemsales(EURmillion)
25.7 22.6 Averagesellingpriceofnewsystemsales(EURmillion)
3.4 3.5 Averagesellingpriceofusedsystemsales(EURmillion)
2,803.4¹ 2,755.5 ValueofsystemsbacklogexcludingEUV(EURmillion)
100¹ 105 SystemsbacklogexcludingEUV(inunits)
28.0¹ 26.2 AveragesellingpriceofsystemsbacklogexcludingEUV(EURmillion)

1 AsofJanuary1,2011,ASMLvaluesnetbookingsandsystemsbacklogatgrosssystemsalesvalue.Thecomparativefigureshavenotbeenadjusted.

Consolidated sales and gross profit

NetsalesincreasedbyEUR1,171.1millionfromEUR1,810.5millionforthefirsthalfof2010toEUR2,981.6million forthefirsthalfof2011andthenumberofsystemsshippedincreasedfrom77systemsinthefirsthalfof2010to126 systemsinthefirsthalfof2011.Theincreaseinnetsalesiscausedbyincreaseddemandforallchiplayers:customers continuetoinvestinnewleading-edgeimmersiontechnologyaswellasdrylithographytoolsinordertoexecutetheir strategicfabinvestmentsinnewtechnologyandcapacitytomeetdemand.Asaresultofinvestmentsindrylithography toolsforcapacity,theaveragesellingprice("ASP")ofournewsystemsdecreasedby12.1percentfromEUR25.7

millioninthefirsthalfof2010toEUR22.6millioninthefirsthalfof2011.TheASPofourusedsystems(EUR3.5million) inthefirsthalfof2011wasinlinewiththeASPinthefirsthalfof2010.

GrossprofitonsalesincreasedfromEUR685.9millionor37.9percentofnetsalesforthefirsthalfof2010toEUR 1,285.4millionor43.1percentofnetsalesforthefirsthalfof2011.Thehighergrossprofitwasmainlyattributabletoa significantincreaseinnetsalesasaresultoftheincreaseddemandbyourcustomersforallchiplayers.Furthermore,in thefirsthalfof2010,thegrossprofitwaspartlyoffsetbyincreasedmanufacturingcostsaaresultlongerlead-times.

Westarted2011withabacklogof157systems.Duringthefirsthalfof2011,webookedordersfor74systemsand recognizedsalesfor126systems.Thisresultedinabacklogof105systemsasofJune26,2011.Thetotalvalueofour systemsbacklogasofJune26,2011amountedtoEUR2,755.5millionwithanASPofEUR26.2million,reflectingamix ofsystemsforallchiplayers.ThesystemsbacklogasofDecember31,2010amountedtoEUR3,855.7millionwithan ASPofEUR24.6million.

Research and development

Researchanddevelopment("R&D")investments(whichincludeR&Dcosts,netofcreditsandadditionstoother intangibleassetsregardingdevelopmentexpenditures)increasedbyEUR44.6millionor18.2percentfromEUR245.5 millionforthefirsthalfof2010(EUR176.3millionR&DcostsandEUR69.2millionadditionstootherintangibleassets regardingdevelopmentexpenditures)toEUR290.1million(EUR258.4millionR&DcostsandEUR31.7millionaddition tootherintangibleassetsregardingdevelopmentexpenditures)forthefirsthalfof2011.TheR&Dinvestmentsincreased asaresultofspendingonourstrategicprograms,inparticularimmersion,doublepatterningandExtremeUltraviolet ("EUV").Theadditionsinotherintangibleassetsregardingcapitalizeddevelopmentexpendituresdecreasedduetoan increaseinsubsequentdevelopmentcosts,relatingtoourstrategicprograms,whichcannotbecapitalized.

Income taxes

Incometaxexpenseisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateforthefull financialyear.Theestimatedannualtaxrateforthesix-monthperiodendedJune26,2011is10.4percentcomparedto 15.2percentforthesix-monthperiodendedJune27,2010.

InDecember2010,ASMLreachedagreementwiththeDutchfiscalauthoritiesregardingtheapplicationofthe "InnovationBox",afacilityunderDutchcorporatetaxlawpursuanttowhichincomeassociatedwithR&Dispartially exemptedfromtaxation.ThistaxrulinghasretroactiveeffecttoJanuary1,2007andisvalidthroughDecember 31,2016.Thereafterthevalidityofthisrulingmaybeextendedorthisrulingmaybeadaptedincaseachangeof circumstancesoccurs.For2010thebeneficialimpactoftheInnovationBoxwaspartiallyoffsetwiththecumulative negativeRoyaltyBoxeffectsincurredintheNetherlandsduringtheperiod2007-2009.Inthefirsthalfof2011,the InnovationBoxeffectisnolongeroffsetbytheseprioryeareffects.Furthermorethedecreaseoftheestimatedannual taxrateforthesix-monthperiodendedJune26,2011comparedtothesix-monthperiodendedJune27,2010isdueto anincreaseintheInnovationBoxbenefitforthe2011period.

Liquidity

OurprincipalsourcesofliquidityasofJune26,2011consistofEUR2,742.1millionofcashandcashequivalents (December31,2010:EUR1,949.8million),EUR500.0millionofavailablecreditfacilities(December31,2010:EUR 700.0million)andexpectedfuturecashflowsfromoperations.

Wehaverepaymentobligationsin2017,amountingtoEUR600.0million,onour5.75percentseniornotes.Wecurrently intendtofundanyfuturerepaymentobligationsprimarilywithcashonhandandcashgeneratedfromoperations.

TheCompany'savailablecreditfacilitiesamounttoEUR500.0millionasofJune26,2011(December31,2010:EUR 700.0million)andconsistofoneEUR500.0millioncreditfacility.Thiscreditfacilityhasatermoffiveyearsandcontains arestrictivecovenantwhichrequirestheCompanytomaintainaminimumcommittedcapitaltonettotalassetsratio of40.0percentcalculatedinaccordancewithcontractuallyagreeddefinitions.AsofJune26,2011andDecember31, 2010thisratiowas83.9percentand78.0percent,respectively.Therefore,theCompanywasincompliancewiththe covenantasofJune26,2011.OutstandingamountsunderthiscreditfacilitywillbearinterestatEURIBORorLIBOR plusamarginthatdependsontheCompany'sliquidityposition.Noamountswereoutstandingunderthiscreditfacility asofJune26,2011.

TheundrawnEUR200.0millionloanfacility(betweenTheCompanyandtheEuropeanInvestmentBank)hasmaturedin thefirsthalfof2011,astheavailabilityperiodtodrawthefacilityendedonMarch31,2011.

TheCompanycurrentlydoesnotexpectanydifficultyincontinuingtomeetitscovenantrequirements.SeealsoNote4 toourconsolidatedcondensedinterimfinancialstatements.

Inadditiontocashandavailablecreditfacilities,fromtimetotimewemayraiseadditionalcapitalindebtandequity markets.Ourliquidityneedsareaffectedbymanyfactors,someofwhicharebasedonthenormalongoingoperations ofthebusiness,andotherswhichrelatetotheuncertaintiesoftheglobaleconomyandthesemiconductorindustry. ASMLbelievesthatcashgeneratedfromoperations,togetherwiththeliquidityprovidedbyexistingcashbalancesand borrowingcapacity,willbesufficienttosatisfyitspresentrequirements.

Dividends and Share buybacks

Weaimtopayasustainableannualdividendthatwillbestableorgrowingovertime.Annually,theSupervisoryBoard, uponproposaloftheBoardofManagement,willassesstheamountofdividendthatwillbeproposedtotheAnnual GeneralMeetingofShareholders.TheCompanyincreaseditsdividendpay-outinrespectof2010toEUR0.40per ordinaryshareofEUR0.09,whichwasapprovedbytheannualgeneralMeetingofShareholdersonApril20,2011.Asa result,anamountofEUR172.6millionwaspaidtoourshareholdersinMay2011.

Weintend,nexttodividendpayments,toreturncashtoourshareholdersonaregularbasisthroughsharebuybacks orrepaymentofcapital,subjecttoouractualandanticipatedlevelofcashgeneratedfromoperations,thecash requirementsforinvestmentinASML'sbusiness,ASML'scurrentsharepriceandothermarketconditionsandrelevant factors.

AsannouncedonJanuary19,2011,andapprovedbyourGeneralMeetingofShareholdersonApril20,2011,ASMLwill repurchaseuptoEUR1.0billionofitsownshareswithintwoyears.AsofJune26,2011,theaggregateamountof sharesrepurchasedamountstoEUR373.8million,whichrepresents37.4percentoftheprogram.ASMLintendsto canceltherepurchasedshares.

Cash Flows from Operating Activities

WegeneratedcashfromoperatingactivitiesofEUR1,631.6millionandEUR306.9millioninthefirsthalfof2011and 2010,respectively.Cashprovidedbyoperatingactivitiesinthefirsthalfof2011mainlyrelatestoincreasedsaleslevels asaresultofincreaseddemandinthesemiconductorequipmentindustry,partlyoffsetbyinvestingininventories tosupportgrowthinsaleslevels.Furthermore,operatingcashispositivelyimpactedbyanincreaseinaccruedand otherliabilitiesduetoadvancesreceivedfromcustomers,forsystemsincludedinASML'scurrentproductportfolioor systemscurrentlyunderdevelopment,intheformofdownpayments,mainlyrelatingtoEUV.

Cash Flows from Investing Activities

WeusedEUR159.1millionforinvestingactivitiesinthefirsthalfof2011andEUR94.5millioninthefirsthalfof2010. Themajorityofthefirsthalfof2011expendituresrelatedtocapitalizationofdevelopmentexpenditures,buildingsand constructionsandmachineryandequipment.

Cash Flows from Financing Activities

NetcashusedinfinancingactivitieswasEUR666.0millioninthefirsthalfof2011comparedtoEUR73.0millioninthe firsthalfof2010.Netcashusedinfinancingactivitiesinthefirsthalfof2011mainlyincludedEUR172.6millionasa resultofthedividendpaymentandEUR365.7millionasaresultofsharebuybacks,partlyoffsetbynetproceedsfrom issuanceofsharesandstockoptionsundershareandstockoptionplans.

Related party transactions

FordisclosureregardingrelatedpartytransactionsseeNote15oftheconsolidatedcondensedinterimfinancial statements.

Auditors' involvement

Thisstatutoryinterimreportandtheconsolidatedcondensedinterimfinancialstatementsincludedhereinhavenotbeen auditedorreviewedbyanexternalauditor.

2011 Second half perspectives

Operational outlook

WebookedEUR840millionworthofsystems,excludingEUV,inthesecondquarterof2011,severalsystemsbelow expectations.Ourcustomersarecurrentlytakingsometimetoassessthesemiconductorend-demandtrendsfor2012 beforedeterminingtheiroverallcapacityplanslevelsandtimings.Wethereforeanticipatethirdquarterorderslikelynot toexceedEUR500million.

WehighlightthatourEUVtechnologyhasprogressedtothepointthatwewillrecognizethefirsttwoNXE:3100systems inthirdquartersales,astheplatformisbeingusedbyourcustomerstodevelopprocessrecipes.Theordersfor NXE:3100,withanASPofEUR42million,includefoursystemsthatwillberecognizedinnetsystemsalesovercoming quarters,oneoperatingleasecontractandoneR&DsystemtoberecognizedintheR&Dlineinthecomingquarters. TheNXE:3100isoursecond-generationEUVsystem;ASMLplanstointroduceitsvolumeproductionsystemNXE:3300 bynextyear.

Financial outlook

ThefollowingtablesetsforthoursystemsbacklogasofJune26,2011andDecember31,2010:

June 26, 2011 December 31, 2010
NewsystemsbacklogexcludingEUV(inunits) 86 135 1
UsedsystemsbacklogexcludingEUV(inunits) 19 22 1
TotalsystemsbacklogexcludingEUV(inunits) 105 157 1
ValueofnewsystemsbacklogexcludingEUV(EURmillion) 2,691.1 3,744.3 1
ValueofusedsystemsbacklogexcludingEUV(EURmillion) 64.4 111.4 1
ValueoftotalsystemsbacklogexcludingEUV(EURmillion) 2,755.5 3,855.7 1
AveragesellingpriceofnewsystemsbacklogexcludingEUV(EURmillion) 31.3 27.7 1
AveragesellingpriceofusedsystemsbacklogexcludingEUV(EURmillion) 3.4 5.1 1
AveragesellingpriceoftotalsystemsbacklogexcludingEUV(EURmillion) 26.2 24.6 1

1 AsofJanuary1,2011,ASMLvaluesnetbookingsandsystemsbacklogatgrosssystemsalesvalue.Thecomparativefigureshavenotbeenadjusted.

Oursystemsbacklogincludesonlysystemordersforwhichwrittenauthorizationshavebeenacceptedandshipment dateswithin12monthshavebeenassigned.Historically,ordershavebeensubjecttocancellationordelayby customers.Duetopossiblecustomerchangesindeliveryschedulesandtocancellationoforders,oursystemsbacklog atanyparticulardateisnotnecessarilyindicativeofactualsalesforanysucceedingperiod.

Forthe2011thirdquarter,ASMLexpectsnetsalesofaroundEUR1.4billion,includingtwosecondgenerationEUV systemswhichrepresenttotalsalesofaroundEUR80millionwithzeroprofitmargin.Weexpect2011fullyearsalesto exceedEUR5.0billion,excludingEUV.

Great people at ASML

AsofJune26,2011,weemployed7,697payrollemployeesinFTEsprimarilyinmanufacturing,productdevelopment andcustomersupportactivities(December31,2010:7,184).Inaddition,asofJune26,2011,thetotalnumberof temporaryemployeesinFTEswas2,159(December31,2010:2,061).Werelyonourabilitytovarythenumberof temporaryemployeestorespondtofluctuatingmarketdemandforourproducts.

Ourfuturesuccesswilldependonourabilitytoattract,train,retainandmotivatehighlyqualified,skilledandeducated employees,whoareingreatdemand.Weareparticularlyreliantforourcontinuedsuccessontheservicesofseveral keyemployees,includinganumberofsystemsdevelopmentspecialistswithadvanceduniversityqualificationsin engineering,opticsandcomputing.

OursuccesseswereachievedthankstoASML'speopleineverypartofourorganization.Ourworldrenownedexperts innano-scalelithographyhavecumulativeexperiencethatissecondtonone.Ourculturethrivesonverystrong commitmenttoleadership,achievementsandcustomersatisfaction.OurpeoplehavenotonlydrivenASML'sreputation tothehighestlevels,theyhavealsopositionedASMLwelltomeettheeverincreasingtechnicalrequirementsofour customers.

TheBoardofManagement, Veldhoven,July13,2011

Managing directors' statement

TheBoardofManagementherebydeclaresthat,tothebestofitsknowledge,theconsolidatedcondensedinterim financialstatementspreparedinaccordancewithIAS34,"InterimFinancialReporting",provideatrueandfairviewof theassets,liabilities,financialpositionandprofitorlossofASMLHoldingN.V.andtheundertakingsincludedinthe consolidationtakenasawhole,andtheManagementBoardReportincludesafairreviewoftheinformationrequired pursuanttosection5:25d(8)/(9)oftheDutchActonFinancialSupervision(Wet op het financieel toezicht).

TheBoardofManagement,

EricMeurice,President,ChiefExecutiveOfficer

PeterT.F.M.Wennink,ExecutiveVicePresident,ChiefFinancialOfficer MartinA.vandenBrink,ExecutiveVicePresident,ChiefProductandTechnologyOfficer FritsJ.vanHout,ExecutiveVicePresident,ChiefMarketingOfficer FredericSchneider-Maunoury,ExecutiveVicePresident,ChiefOperatingOfficer

Veldhoven,July13,2011

Consolidated Condensed Interim Financial Statements

Consolidated Condensed Interim Financial Statements

  • ConsolidatedCondensedIncomeStatement
  • ConsolidatedCondensedStatementofComprehensiveIncome
  • ConsolidatedCondensedStatementofFinancialPosition
  • ConsolidatedCondensedStatementofChangesinEquity
  • ConsolidatedCondensedStatementofCashFlows
  • NotestotheConsolidatedCondensedInterimFinancialStatements
For the six-month period ended June, 26, 2011 and June, 27, 2010 Unaudited Unaudited
Notes 2011 2010
(inthousands,exceptpersharedata) EUR EUR
13 Netsystemsales 2,618,045 1,554,638
13 Netserviceandfieldoptionsales 363,538 255,841
Total net sales 2,981,583 1,810,479
Costofsystemsales 1,510,062 984,597
Costofserviceandfieldoptionsales 186,099 140,008
Total cost of sales 1,696,161 1,124,605
Gross profit on sales 1,285,422 685,874
Researchanddevelopmentcosts 258,411 176,290
Selling,generalandadministrativecosts 104,840 82,954
Operating income 922,171 426,630
Interestincome 15,312 4,519
Interestcharges (14,575) (13,962)
Income before income taxes 922,908 417,187
12 Provisionforincometaxes (95,958) (63,329)
Net income 826,950 353,858
6
6
Basicnetincomeperordinaryshare
Dilutednetincomeperordinaryshare
Numberofordinarysharesusedincomputing
1.91
1.89
0.81
0.81
pershareamounts(inthousands):
Basic
Diluted
432,928
436,461
434,578
438,504

Consolidated Condensed Statement of Comprehensive Income

Unaudited Unaudited For the six-month period ended June, 26, 2011 and June, 27, 2010
2010 2011
EUR EUR (inthousands)
353,858 826,950 Net income
Other comprehensive income:
Foreign currency translation, net of taxes:
44,724 1,769 Gainsontranslationofforeignoperations
Derivative financial instruments, net of taxes:
(10,100) 53,169 Fairvaluegainsforthesix-monthperiod
(6,164) (30,843) Transferstonetincome
28,460 24,095 Other comprehensive income for the period, net of taxes
382,318 851,045 Total comprehensive income for the period, net of taxes
382,318 851,045 AttributabletoEquityholders:

Consolidated Condensed Statement of Financial Position

Unaudited
Notes June 26, 2011 December 31, 2010
(inthousands) EUR EUR
Assets
7 Property,plantandequipment 960,170 745,331
Goodwill 140,665 150,071
Otherintangibleassets 247,300 277,038
12 Deferredtaxassets 247,759 234,194
Financereceivables - 28,905
4 Derivativefinancialinstruments 49,487 71,779
Otherassets 161,100 159,603
Total non-current assets 1,806,481 1,666,921
8 Inventories 1,616,652 1,500,072
12 Currenttaxassets 982 12,678
4 Derivativefinancialinstruments 32,340 24,401
Financereceivables 61,906 12,648
9 Accountsreceivable 895,120 1,123,534
Otherassets 183,822 163,745
Cashandcashequivalents 2,742,108 1,949,834
Total current assets 5,532,930 4,786,912
Total assets 7,339,411 6,453,833
Equity and liabilities
Equity 3,353,304 3,022,462
Long-termdebt1 701,677 704,302
4 Derivativefinancialinstruments 1,895 1,981
12 Deferredandothertaxliabilities 211,011 185,009
Provisions 10,090 11,811
10 Accruedandotherliabilities 831,916 371,089
Total non-current liabilities 1,756,589 1,274,192
Provisions 2,109 2,250
4 Derivativefinancialinstruments 6,676 32,917
Currentportionoflong-termdebt1 2,561 1,429
12 Currentandothertaxliabilities 84,823 79,354
10 Accruedandotherliabilities 1,509,002 1,485,832
Accountspayable 624,347 555,397
Total current liabilities 2,229,518 2,157,179
Total equity and liabilities 7,339,411 6,453,833

1 AsofJanuary1,2011thecurrentportionoflong-termdebtispresentedaspartofthecurrentliablities.Thecomparativefigureshavebeenadjustedto reflectthischangeinpresentation(EUR1.4million).

Consolidated Condensed Statement of Changes in Equity

Issued and
outstanding shares
Number1 Amount Share
Premium
Retained
Earnings
Treasury
Shares at
cost
Other
Reserves2
Net Income
(Loss)
Total
(inthousands) EUR EUR EUR EUR EUR EUR EUR
Balance at December 31, 2009
Appropriation of net loss
433,639
-
40,448
-
- 923,487 1,215,492
(81,443)
(219,623)
-
172,446
-
81,443 (81,443) 2,050,807
-
Netincome - - - - - - 353,858 353,858
Foreigncurrencytranslation,netoftaxes - - - - - 44,724 - 44,724
Derivativefinancialinstruments,netof
taxes
- - - - - (16,264) - (16,264)
Total comprehensive income - - - - - 28,460 353,858 382,318
Share-based payments - - 3,053 - - - - 3,053
Dividend paid3 - - - (86,952) - - - (86,952)
Issuance of shares and stock options
Development expenditures
1,732
-
156
-
(12,049)
-
(8,947)
(186)
39,016
-
-
186
-
-
18,176
-
Balance at June 27, 2010 (unaudited) 435,371 40,604 914,491 1,037,964 (180,607) 201,092 353,858 2,367,402
Netincome - - - - - - 631,595 631,595
Foreigncurrencytranslation,netoftaxes - - - - - (17,418) - (17,418)
Derivativefinancialinstruments,netof
taxes
- - - - - 15,043 - 15,043
Total comprehensive income - - - - - (2,375) 631,595 629,220
Share-based payments - - 13,201 - - - - 13,201
Dividend paid3 - - - (8) - - - (8)
Issuance of shares and stock options 1,222 109 (5,351) (9,626) 27,515 - - 12,647
Development expenditures - - - 68,339 - (68,339) - -
Balance at December 31, 2010 436,593 40,713 922,341 1,096,669 (153,092) 130,378 985,453 3,022,462
Appropriation of net income - - - 985,453 - - (985,453) -
Netincome - - - - - - 826,950 826,950
Foreigncurrencytranslation,netoftaxes - - - - - 1,769 - 1,769
Derivativefinancialinstruments,netof
taxes
- - - - - 22,326 - 22,326
Total comprehensive income - - - - - 24,095 826,950 851,045
Purchases of treasury shares4 (13,185) - - - (373,801) - - (373,801)
Share-based payments - - 2,620 - - - - 2,620
Dividend paid3 - - - (172,645) - - - (172,645)
Issuance of shares and stock options 1,907 - (7,076) (12,219) 42,918 - - 23,623
Development expenditures - - - 25,683 - (25,683) - -
Balance at June 26, 2011 (unaudited) 425,315 40,713 917,885 1,922,941 (483,975) 128,790 826,950 3,353,304

1 AsofJune26,2011,thenumberofissuedshareswas444,480,095.Thisincludesthenumberofissuedandoutstandingsharesof425,315,091andthe numberoftreasurysharesof19,165,004.AsofJune27,2010,thenumberofissuedshareswas444,480,095.Thisincludedthenumberofissuedand outstandingsharesof435,371,194andthenumberoftreasurysharesof9,108,901.

2 Otherreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.

3 Duringthesix-monthperiodendedJune26,2011,ASMLpaidoutadividendofEUR172.6milliontoitsshareholders.During2010,ASMLpaidouta dividendofEUR87.0milliontoitsshareholders.SeeNote14forfurtherinformation.

4 Duringthesix-monthperiodendedJune26,2011,ASMLrepurchasedsharesforanamountofEUR373.8million.AsofJune26,2011,EUR8.1million ofthetotalrepurchaseamountremainedunpaidandisrecordedinaccruedandothercurrentliabilities.Seenote14forfurtherinformation.

Consolidated Condensed Statement of Cash Flows

For the six-month period ended June, 26, 2011 and June, 27, 2010 Unaudited Unaudited
2011 2010
Notes
(inthousands)
EUR EUR
Cash Flows from Operating Activities
Netincome 826,950 353,858
Adjustmentstoreconcilenetincometonetcash
flowsfromoperatingactivities:
7
Depreciationandamortization
138,227 134,261
7
Impairment
551 8,658
7
Lossondisposalsofproperty,plantandequipment
1,898 1,626
Share-basedpayments 4,796 5,220
9
Allowancefordoubtfuldebts
1,173 203
8
Allowanceforobsoleteinventory
13,505 16,903
12
Deferredincometaxes
25,149 6,205
Changesinassetsandliabilities:
9
Accountsreceivable
292,353 (437,972)
Financereceivables (20,353) 19,222
8
Inventories¹
(259,531) (489,239)
Otherassets (26,110) 10,259
10
Accruedandotherliabilities
588,404 369,787
Accountspayable 40,144 372,490
12
Incometaxespayable
93,117 24,571
Cash generated from operations 1,720,273 396,052
Interestreceived 27,340 29,336
Interestpaid (35,115) (34,845)
12
Incometaxespaid
(80,934) (83,673)
Net cash provided by operating activities 1,631,564 306,870
Cash Flows from Investing Activities
7
Purchasesofproperty,plantandequipment¹
(127,321) (25,224)
7
Proceedsfromsaleofproperty,plantandequipment
- -
Purchaseofintangibleassets (31,730) (69,260)
Net cash used in investing activities (159,051) (94,484)
Cash Flows from Financing Activities
14
Dividendpaid
(172,645) (86,952)
14
Purchaseofshares²
(365,680) -
Netproceedsfromissuanceofsharesandstockoptions 23,623 18,176
Depositsfromcustomers (150,000) -
Repaymentofdebt (1,265) (4,192)
Net cash used in financing activities (665,967) (72,968)
Netcashflows 806,546 139,418
Effectofchangesinexchangeratesoncash (14,272) 12,100
Net increase in cash and cash equivalents 792,274 151,518
Cashandcashequivalentsatbeginningoftheyear 1,949,834 1,037,074
Cash and cash equivalents at June 26, 2011 and June 27, 2010 2,742,108 1,188,592

1 AnamountofEUR156.2million(2010:EUR214.1million)oftheadditionsinproperty,plantandequipmentrelatestonon-cashtransfersfrominventory andanamountofEUR7.5million(2010:EUR110.4million)ofthedisposalsofproperty,plantandequipmentrelatestonon-cashtransferstoinventory. 2 Duringthesix-monthperiodendedJune26,2011,ASMLrepurchasedsharesforanamountofEUR373.8million.AsofJune26,2011,EUR8.1million

ofthetotalrepurchaseamountremainedunpaidandisrecordedinaccruedandothercurrentliabilities.Seenote14forfurtherinformation.

Notes to the Consolidated Condensed Interim Financial Statements

1. General Information

ASMLHoldingN.V.,withitscorporateheadquartersinVeldhoven,theNetherlands,isengagedinthedevelopment, production,marketing,saleandservicingofadvancedsemiconductorequipmentsystemsexclusivelyconsistingof lithographysystemsandmetrologyforlithography.ASML'sprincipaloperationsareintheNetherlands,theUnited StatesofAmericaandAsia.

ASML'ssharesarelistedfortradingintheformofregisteredsharesontheNASDAQStockMarketLLC("NASDAQ") andintheformofregisteredsharesonEuronextAmsterdambyNYSEEuronext("EuronextAmsterdam").Theprincipal tradingmarketofASML'sordinarysharesisEuronextAmsterdam.

TheconsolidatedcondensedinterimfinancialstatementsincludethefinancialstatementsofASMLHoldingN.V. headquarteredinVeldhoven,theNetherlands,anditsconsolidatedsubsidiaries(togetherreferredtoas"ASML"or"the Company").

TheconsolidatedcondensedinterimfinancialstatementsoftheCompanywereauthorizedforissuebytheBoardof ManagementonJuly13,2011.

Theconsolidatedcondensedinterimfinancialstatementshavenotbeenauditedorreviewedbyanexternalauditor.

2. Basis of Preparation

Theconsolidatedcondensedinterimfinancialstatementsforthesix-monthperiodendedJune26,2011havebeen preparedinaccordancewithInternationalAccountingStandard34,"InterimFinancialReporting".Theconsolidated condensedinterimfinancialstatementsdonotincludealltheinformationanddisclosuresrequiredintheannualfinancial statements,andshouldbereadinconjunctionwiththestatutoryfinancialstatements2010,whichhavebeenprepared inaccordancewithInternationalFinancialReportingStandards("IFRS")asadoptedbytheEuropeanUnion("EU").

Theconsolidatedcondensedinterimfinancialstatementsarestatedinthousandsofeuros("EUR")unlessotherwise indicated.

3. Summary of Significant Accounting Policies

Theaccountingpoliciesadoptedinthepreparationoftheconsolidatedcondensedinterimfinancialstatementsare consistentwiththoseappliedinthepreparationoftheCompany'sstatutoryfinancialstatements2010.

Incometaxexpenseisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateexpectedforthe fullfinancialyear.

Adoption of new and revised International Financial Reporting Standards

TheCompany'sadoptionofnewStandardsandInterpretationswhichbecameeffectiveasofJanuary1,2011,arenoted below.

IAS24(Revised),"RelatedPartyDisclosures"(effectiveforannualperiodsbeginningonorafterJanuary1,2011).The revisedstandardsimplifiesthedisclosurerequirementsforgovernment-relatedentitiesbyprovidingapartialexemption forgovernment-relatedentitiesandclarifiesthedefinitionofarelatedparty.TheadoptionoftheRevisedStandarddid nothaveanyimpactontheCompany'sconsolidatedcondensedinterimfinancialstatements.

IAS32(Amendment)"ClassificationofRightsIssues"(effectiveforannualperiodsbeginningonorafterFebruary 1,2010).TheamendmenttoIAS32addressestheaccountingforrightsissues(rights,optionsorwarrants)thatare denominatedinacurrencyotherthanthefunctionalcurrencyoftheissuer.Theamendmentrequiresthat,provided certainconditionsaremet,suchrightsissuesareclassifiedasequityregardlessofthecurrencyinwhichtheexercise priceisdenominated.TheadoptionoftheRevisedStandarddidnothaveanyimpactontheCompany'sconsolidated condensedinterimfinancialstatements.

IFRIC19,'Extinguishingfinancialliabilitieswithequityinstruments'(effectiveforannualperiodsbeginningonor afterJuly1,2010).Theinterpretationclarifiestheaccountingbyanentitywhenthetermsofafinancialliabilityare renegotiatedandresultintheentityissuingequityinstrumentstoacreditoroftheentitytoextinguishallorpartofthe financialliability(debtforequityswap).Itrequiresagainorlosstoberecognisedinprofitorloss,whichismeasuredas thedifferencebetweenthecarryingamountofthefinancialliabilityandthefairvalueoftheequityinstrumentsissued.If thefairvalueoftheequityinstrumentsissuedcannotbereliablymeasured,theequityinstrumentsshouldbemeasured

toreflectthefairvalueofthefinancialliabilityextinguished.TheadoptionoftheRevisedStandarddidnothaveany impactontheCompany'sconsolidatedcondensedinterimfinancialstatements.

4. Financial Risk Management

Financial Risk Factors

ASMLisexposedtoavarietyoffinancialrisks:marketrisks(includingforeigncurrencyexchangerateriskandinterest raterisk),creditriskandliquidityandcapitalrisk.Theoverallriskmanagementprogramfocusesontheunpredictability offinancialmarketsandseekstominimizepotentialadverseeffectsontheCompany'sfinancialperformance.The Companyusesderivativefinancialinstrumentstohedgecertainrisks:noneofthetransactionsareenteredintofor tradingorspeculativepurposes.

TheCompany'sFinancialRiskManagementPolicydidnotchangecomparedtothepoliciesdescribedinthestatutory financialstatements2010.

Foreign currency exchange rate risk management

TheCompanyusestheeuroasitsprimaryinvoicingcurrencyinordertolimittheexposuretoforeigncurrency movements.Exceptionsmayoccuronacustomer-by-customerbasis.Totheextentthatinvoicingisdoneinacurrency otherthantheeuro,theCompanyisexposedtoforeigncurrencyrisk.

ItistheCompany'spolicytohedgematerialtransactionexposures,suchasforecastedsalestransactions,forecasted purchasetransactions,accountsreceivableandaccountspayable.TheCompanyhedgestheseexposuresthroughthe useofcurrencycontracts.

AsofJune26,2011,equityincludesEUR17.8millionloss(netoftaxes:EUR15.9millionloss;December31,2010EUR 35.9millionloss)representingthetotalanticipatedlosstobechargedtosales,andEUR4.7millionloss(netoftaxes: EUR4.2millionloss;December31,2010EUR6.1millionloss)tobechargedtocostofsales,whichwilloffsetthehigher EURequivalentofforeigncurrencydenominatedforecastedsalesandpurchasetransactions.Itisanticipatedthatan amountofEUR17.8millionlosswillbechargedtosalesandEUR4.7millionlosswillbechargedtocostofsalesover thenexttwelvemonths,astheforecastedsalesandpurchasetransactionsoccur.

Lines of credit

TheCompany'savailablecreditfacilitiesamounttoEUR500.0millionasofJune26,2011(December31,2010:EUR 700.0million)andconsistofoneEUR500.0millioncreditfacility.Thiscreditfacilityhasatermoffiveyearsandcontains arestrictivecovenantwhichrequirestheCompanytomaintainaminimumcommittedcapitaltonettotalassetsratio of40.0percentcalculatedinaccordancewithcontractuallyagreeddefinitions.AsofJune26,2011andDecember31, 2010thisratiowas83.9percentand78.0percent,respectively.Therefore,theCompanywasincompliancewiththe covenantasofJune26,2011.OutstandingamountsunderthiscreditfacilitywillbearinterestatEURIBORorLIBOR plusamarginthatdependsontheCompany'sliquidityposition.Noamountswereoutstandingunderthiscreditfacility asofJune26,2011.

TheundrawnEUR200.0millionloanfacility(betweenTheCompanyandtheEuropeanInvestmentBank)hasmaturedin thefirsthalfof2011,astheavailabilityperiodtodrawthefacilityendedonMarch31,2011.

ForfurtherinformationregardingtheCompany'sFinancialRiskManagement,seetheCompany'sstatutoryfinancial statements2010.

5. Critical Accounting Judgments and Key sources of Estimation uncertainty

IntheprocessofapplyingtheCompany'saccountingpolicies,managementhasmadesomejudgmentsthathavea significanteffectontheamountsrecognizedintheconsolidatedcondensedinterimfinancialstatements.Thecritical accountingjudgmentsandkeysourcesofestimationuncertaintyareconsistentwiththosedescribedintheCompany's statutoryfinancialstatements2010.

6. Earnings per Share

Theearningspershare("EPS")datahavebeencalculatedasfollows:

For the six-month period ended June, 26, 2011 and June, 27, 2010 Unaudited Unaudited
2011 2010
(inthousands,exceptpersharedata) EUR EUR
Net income 826,950 353,858
Weighted average number of shares outstanding (after deduction of treasury stock) during the year 432,928 434,578
Basic net income per ordinary share 1.91 0.81
Weighted average number of shares:
Plussharesapplicableto:
432,928 434,578
Stockoptions/Restrictedshares1 3,533 3,926
Dilutive potential common shares 3,533 3,926
Adjusted weighted average number of shares 436,461 438,504
Diluted earnings per share1 1.89 0.81

1 ThecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderASMLstockoptionplansandtheissueofshares underASMLshareplansforperiodsinwhichexercisesorissueswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeperordinaryshare doesnotassumeexerciseofsuchoptionsorissueofshareswhensuchexercisesorissuewouldbeantidilutive.

7. Property, Plant and Equipment

Theincreaseofthecarryingamountoftheproperty,plantandequipmentmainlyrelatestoadditionsinbuildingsand constructions(EUR94.5million)andmachineryandequipment,mainlyprototypes,demonstrationandtrainingsystems (EUR184.0million).Theadditionsinbuildingsandconstructionsrelatetoinvestmentsofnewcleanroomandoffice facilitiesinVeldhoven.Formachineryandequipment,thesystemsarecapitalizedunderproperty,plantandequipment becausetheyareheldforownuse,forrentalandforevaluationpurposes,andatthetimetheyareplacedinservice theyareexpectedtobeusedforaperiodlongerthanoneyear.Thesesystemsarerecordedatcostanddepreciated overtheirexpectedusefullife.Fromthetimethattheseassetsarenolongerheldforusebutintendedforsaleinthe ordinarycourseofbusiness,theyarereclassifiedfromproperty,plantandequipmenttoinventoryattheloweroftheir carryingvalueorfairmarketvalue.Sincethetransfersbetweeninventoryandproperty,plantandequipmentarenoncashevents,thesearenotreflectedintheconsolidatedcondensedinterimstatementofcashflows.

8. Inventories

TheincreasedinventorybalancecomparedtoDecember31,2010mainlyconsistsofinventoriesregardingNXE:3100 andNXT:1950isystems.

9. Accounts Receivable

Thedecreaseintheaccountsreceivablesreflectscashinflowsfromourcustomersduringthefirsthalfof2011regarding receivablesthatwerepastduebutnotimpairedasofDecember31,2010.

Unaudited
June 26, 2011 December 31, 2010
(inthousands) EUR EUR
Deferredrevenue 870,462 543,145
Coststobepaid 290,012 270,836
Depositsfromcustomers - 150,000
Downpaymentsfromcustomers¹ 959,137 675,636
Personnelrelateditems 172,784 177,025
Warranty 46,575 37,965
Other 1,948 2,314
Total accrued and other liabilities 2,340,918 1,856,921
Less:non-currentportionofaccruedandotherliabilities¹ 831,916 371,089
Current portion of accrued and other liabilities 1,509,002 1,485,832

1 TheCompanyreceivesadvancesfromcustomerspriortoshipmentforsystemsincludedinASML'scurrentproductportfolioorsystemscurrentlyunder developmentintheformofdownpayments,mainlyrelatingtoEUV.

11. Commitments, Contingencies and Guarantees

Thenature,scaleandscopeofthecommitments,contingenciesandguaranteesisinlinewiththecommitments, contingenciesandguaranteesdisclosedintheCompany'sstatutoryfinancialstatements2010.

12. Income Taxes

Incometaxexpenseisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateforthefull financialyear.Theestimatedannualtaxrateforthesix-monthperiodendedJune26,2011is10.4percentcomparedto 15.2percentforthesix-monthperiodendedJune27,2010.

InDecember2010,ASMLreachedagreementwiththeDutchfiscalauthoritiesregardingtheapplicationofthe "InnovationBox",afacilityunderDutchcorporatetaxlawpursuanttowhichincomeassociatedwithR&Dispartially exemptedfromtaxation.ThistaxrulinghasretroactiveeffecttoJanuary1,2007andisvalidthroughDecember 31,2016.Thereafterthevalidityofthisrulingmaybeextendedorthisrulingmaybeadaptedincaseachangeof circumstancesoccurs.For2010thebeneficialimpactoftheInnovationBoxwaspartiallyoffsetwiththecumulative negativeRoyaltyBoxeffectsincurredintheNetherlandsduringtheperiod2007-2009.Inthefirsthalfof2011,the InnovationBoxeffectisnolongeroffsetbytheseprioryeareffects.Furthermorethedecreaseoftheestimatedannual taxrateforthesix-monthperiodendedJune26,2011comparedtothesix-monthperiodendedJune27,2010isdueto anincreaseintheInnovationBoxbenefitforthe2011period.

Currenttaxassetshavedecreasedasaresultoftaxesrepaidbytaxauthorities.Themajorityofthedeferredandother taxliabilitiesisclassifiedasnon-currentbecausepaymentofcashisnotexpectedwithinoneyear.

13. Segment Disclosure

ASMLoperatesinonereportablesegmentforthedevelopment,manufacture,marketingandservicingoflithography equipment,andthereforethereisnochangetotheidentificationoftheCompany'ssegment.ASML'sChiefExecutive Officerhasbeenidentifiedaschiefoperatingdecision-maker,whoreviewsoperatingresultstomakedecisionsabout allocatingresourcesandassessingperformancefortheentireCompany.

Managementreportingincludesnetsystemsalesfiguresofnewandusedsystems.Netsalesfornewandusedsystems wereasfollows:

For the six-month period ended June, 26, 2011 and June, 27, 2010 Unaudited Unaudited
2011 2010
(inthousands) EUR EUR
Newsystems 2,575,460 1,489,386
Usedsystems 42,585 65,252
Total net system sales 2,618,045 1,554,638

SegmentperformanceisevaluatedbytheCompany'smanagementbasedonUSGAAPnetincomeorlosswhich incertainrespects,asexplainedinthetablebelow,ismeasureddifferentlyfromnetincomeorlossreportedbythe Companyinitsstatutoryfinancialstatements,whicharebasedonIFRSasadoptedbytheEU.

For the six-month period ended June, 26, 2011 and June, 27, 2010 Unaudited Unaudited
2011 2010
(inthousands) EUR EUR
Netsystemsales 2,618,045 1,554,638
Netserviceandfieldoptionsales 363,538 255,841
Total net sales 2,981,583 1,810,479
Costofsales 1,642,012 1,052,525
Gross profit on sales 1,339,571 757,954
Researchanddevelopmentcosts 290,106 245,550
Selling,generalandadministrativecosts 105,262 83,077
Income from operations 944,203 429,327
Interestincome(expense),net 3,692 (5,529)
Income before income taxes 947,895 423,798
(Provisionfor)benefitsfromincometaxes (120,858) (77,343)
Net income 827,037 346,455
DifferencesU.S.GAAPandIFRS (87) 7,403
Net income for IFRS 826,950 353,858

SegmentperformanceisalsoevaluatedbytheCompany'smanagementbasedonUSGAAPfortotalassets.Thetable belowpresentsthemeasurementsandthereconciliationtototalassetsintheconsolidatedcondensedinterimfinancial statements:

Unaudited
June 26, 2011 December 31, 2010
(inthousands) EUR EUR
Totalassetsformanagementreportingpurposes 7,076,099 6,180,358
DifferencesU.S.GAAPandIFRS 263,312 273,475
TotalassetsforIFRS 7,339,411 6,453,833

Forgeographicalreporting,netsalesareattributedtothegeographiclocationinwhichthecustomers'facilitiesare located.Totalnon-currentassetsareattributedtothegeographiclocationinwhichtheyarelocatedandexclude deferredtaxassetsandderivativefinancialinstruments.Netsalesandnon-currentassetsbygeographicregionwereas follows:

Unaudited Unaudited
Net sales Non-current assets
(inthousands) EUR EUR
For the six-month period ended June 26, 2011:
Japan 146,092 45,693
Korea 495,141 7,799
Singapore 229,628 1,150
Taiwan 786,148 44,672
RestofAsia 184,161 1,659
Europe 321,916 1,188,266
UnitedStates 818,497 219,996
Total 2,981,583 1,509,235
For the six-month period ended June 27, 2010:
Japan 69,808 37,916
Korea 497,907 2,321
Singapore 115,531 678
Taiwan 680,485 46,014
RestofAsia 81,412 1,213
Europe 115,051 922,752
UnitedStates 250,285 270,490
Total 1,810,479 1,281,384

Duringthesix-monthperiodendedJune26,2011,salestothelargestcustomeraccountedforEUR616.5millionor20.7 percentofnetsales(2010:EUR580.4millionor32.1percent).

ASML'sthreelargestcustomers(basedonnetsales)accountedfor17.8percentofaccountsreceivableatJune26, 2011and41.4percentofaccountsreceivableatJune27,2010.

Substantiallyalloursaleswereexportsalesduringthesix-monthperiodendedJune26,2011andJune27,2010.

14. Dividends and Share Buybacks

Weaimtopayasustainableannualdividendthatwillbestableorgrowingovertime.Annually,theSupervisoryBoard, uponproposaloftheBoardofManagement,willassesstheamountofdividendthatwillbeproposedtotheAnnual GeneralMeetingofShareholders.TheCompanyincreaseditsdividendpay-outinrespectof2010toEUR0.40per ordinaryshareofEUR0.09,whichwasapprovedbytheannualgeneralMeetingofShareholdersonApril20,2011.Asa result,anamountofEUR172.6millionwaspaidtoourshareholdersinMay2011.

Weintend,nexttodividendpayments,toreturncashtoourshareholdersonaregularbasisthroughsharebuybacks orrepaymentofcapital,subjecttoouractualandanticipatedlevelofcashgeneratedfromoperations,thecash requirementsforinvestmentinASML'sbusiness,ASML'scurrentsharepriceandothermarketconditionsandrelevant factors.

AsannouncedonJanuary19,2011,andapprovedbyourGeneralMeetingofShareholdersonApril20,2011,ASMLwill repurchaseuptoEUR1.0billionofitsownshareswithintwoyears.AsofJune26,2011,theaggregateamountof sharesrepurchasedamountstoEUR373.8million,whichrepresents37.4percentoftheprogram.ASMLintendsto canceltherepurchasedshares.

15. Related Party Transactions

Therehavebeennosignificantrelatedpartytransactionsthatcouldhaveamaterialeffectonthefinancialpositionor performanceoftheCompanyinthesix-monthperiodendedJune26,2011.

16. Subsequent Events

SubsequenteventshavebeenevaluatedbytheCompanyuntilJuly13,2011whichistheissuancedateofthisinterim report2011.Therearenosubsequenteventstoreport.

Veldhoven,theNetherlands July13,2011

Preparedby TheBoardofManagement: EricMeurice PeterT.F.M.Wennink MartinA.vandenBrink FritsJ.vanHout FredericSchneider-Maunoury

Other Information

Information and Investor Relations

Financial calendar

October 12, 2011 AnnouncementofThirdQuarterresultsfor2011

January 18, 2012 AnnouncementofFourthQuarterresultsfor2011andAnnualResultsfor2011

April 25, 2012 GeneralMeetingofShareholders

Fiscal Year

ASML'sfiscalyearendsonDecember31,2011

Listing

TheordinarysharesoftheCompanyarelistedontheofficialmarketoftheEuronextAmsterdambyNYSEEuronextand intheUnitedStatesontheNASDAQStockMarketLLC,underthesymbol"ASML".ASML'sordinarysharesmayalso tradeonotherstockexchangesfromtimetotime,althoughASMLhasnotappliedforlistingsonthoseexchangesand doesnotendorseandmaynotbenotifiedofsuchtrading.

Investor Relations

ASMLInvestorRelationswillsupplyinformationorcopiesoftheAnnualReportonForm20-FfiledwiththeUS SecuritiesandExchangeCommissionandtheStatutoryAnnualandInterimReport.TheseAnnualReports,Interim Reports,quarterlyreleasesandotherinformationarealsoavailableonandcanbedownloadedfromtheASMLwebsite (www.asml.com).

ASML Worldwide Contact Information

Corporate Headquarters

DeRun6501 5504DRVeldhoven TheNetherlands

Mailing address

P.O.Box324 5500AHVeldhoven TheNetherlands

United States main offices

8555SouthRiverParkway Tempe,AZ85284 U.S.A.

77DanburyRoad Wilton,CT06897 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