ASML Holding N.V. — Interim / Quarterly Report 2012

Jul 18, 2012

StatutoryInterim Report forthe six-monthperiod ended July1,2012

ASML Holding N.V. Statutory Interim Report for the six-month period ended July 1, 2012

Contents

• 6 Introduction
• 7 Interim Management Board Report
• 12 Managing Directors' Statement
• 13 Consolidated Condensed Interim Financial Statements
• 31 Other Information

Thisreportcomprisesregulatedinformationwithinthemeaningofarticles1:1and5:25doftheDutchFinancialMarkets SupervisionAct(WetophetFinancieelToezicht).

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

©2012,ASMLHoldingN.V.AllRightsReserved

Introduction

DearStakeholder,

ASMLHoldingN.V.("ASML")todaypublisheditsStatutoryInterimReportforthesix-monthperiodendedJuly1, 2012.ThisreportincludesanInterimManagementBoardReport,aManagingDirectors'StatementandConsolidated CondensedInterimFinancialStatementspreparedinaccordancewithIAS34.

Today,ASMLalsopublishedits2012second-quarterresultsinaccordancewiththeUnitedStatesGenerallyAccepted AccountingPrinciples("U.S.GAAP")andInternationalFinancialReportingStandards("IFRS")asadoptedbythe EuropeanUnion("EU").

Veldhoven,July18,2012

Interim Management Board Report

About ASML

ASMLisoneoftheworld'sleadingproviders(measuredinrevenues)oflithographyequipmentthatiscriticaltothe productionofICs("IntegratedCircuits")orchips.HeadquarteredinVeldhoven,theNetherlands,ASMLoperatesglobally, withactivitiesinEurope,theUnitedStatesandAsia.AsofJuly1,2012,weemployed8,010payrolland1,860temporary employees(measuredinfull-timeemployees"FTEs").ASMLprovidesoptimalservicetoitscustomersviaover60sales andserviceorganizationsin16countries.

Inthefirsthalfof2012,wegeneratednetsalesofEUR2,479.6millionandanoperatingincomeofEUR753.2million or30.4percentofnetsales.Netincomeforthefirsthalfof2012amountedtoEUR658.9millionor26.6percentofnet sales,representingabasicnetincomeperordinaryshareofEUR1.60.

BelowweprovideanupdateoftherisksanduncertaintiestheCompanyfacesinthesecondhalfof2012,followedby theASMLoperationsupdateand2012secondhalfperspectives.

Risk Factors

Inconductingourbusiness,wefacemanyrisksthatmayinterferewithourbusinessobjectives.Someoftheserisks relatetoouroperationalprocesses,whileothersrelatetoourbusinessenvironment.Itisimportanttounderstandthe natureoftheserisksandtheimpacttheymayhaveonourbusiness,financialconditionandresultsofoperations.Some ofthemorerelevantrisksaredescribedbelow.TheserisksarenottheonlyonesthatASMLfaces.Somerisksmaynot yetbeknowntoASMLandcertainrisksthatASMLdoesnotcurrentlybelievetobematerialcouldbecomematerialin thefuture.TheCompanyhasassessedtherisksforthesecondhalfof2012andbelievesthattherisksidentifiedarein linewiththosepresentedintheStatutoryAnnualReport2011.Foradetaileddescriptionoftherisksdefinedbelow,we refertotheStatutoryAnnualReport2011.

Strategic risks

• Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberofproducts.

Risks related to the semiconductor industry

• Thesemiconductorindustryishighlycyclicalandwemaybeadverselyaffectedbyanydownturn;
• Ourbusinesswillsufferifwedonotrespondrapidlytocommercialandtechnologicalchangesinthesemiconductor industry;and
• Wefaceintensecompetition.

Governmental, legal and compliance risks

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

Operational risks

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

Financial risks

• Ahighpercentageofnetsalesisderivedfromafewcustomers;and
• Fluctuationsinforeignexchangeratescouldharmourresultsofoperations.

Risks related to our ordinary shares

• Wemaynotdeclarecashdividendsatallorinanyparticularamountsinanygivenyear;
• Thepriceofourordinarysharesisvolatile;and
• Restrictionsonshareholderrightsmaydilutevotingpower.

Risks related to our recently announced customer co-investment program

OnJuly9,2012,ASMLannounceditsco-investmentprogram(asdescribedinmoredetailinSubsequentEvents,note 15).Theprogramcontemplatesamongstothersanissuanceofnewshares,asyntheticsharebuy-backandNREfunding commitments.

Theshareissuancesaresubjecttoregulatoryapprovals,andiftheseapprovalsarenotobtained,certaincustomers participatinginthisprogram(includingIntel)willnotbeobligatedtopurchaseshares.Fundingcommitmentsunderthe NREfundingagreementsarecontingentupontheissuanceofsharestobepurchasedbytherelevantcustomer,soif regulatoryapprovalsarenotobtainedfortheshareissuancestoaparticularcustomer,thensuchcustomerwillnotbe obligatedtofunditsNREfundingcommitments.

Inaddition,partoftheShareIssuance("SecondIssuance")andthesyntheticbuybackaresubjecttoshareholder approval.Ifshareholderapprovalisnotobtained,therewillnotbeaSecondIssuanceorasyntheticbuyback,andin thiscasethenumberofourshareswouldincreaseby9.99%,andwhileIntelwouldremainobligatedtofundits450mm NREcommitments,customers(includingIntel)wouldnotbeobligatedtofundEUVNREcommitments.

TherearealsorisksassociatedwiththeNREfundingprogram,includingtheriskthatwemaybeunabletohire sufficientnumbersofqualifiedemployeestoexecutetheEUVand450mmR&DprogramsassociatedwiththeNRE commitments.Inaddition,therearenoassurancesthattheseR&Dprogramswillbesuccessful,andifsuccessful,will resultincustomeracceptanceofthesetechnologies.

ASML Operations Update

Forinternalandexternalreportingpurposes,ASMLfollowsaccountingprinciplesgenerallyacceptedintheUnited StatesofAmerica("U.S.GAAP").U.S.GAAPisASML'sprimaryaccountingstandardfortheCompany'ssettingof financialandoperationalperformancetargets.HowevertheConsolidatedCondensedInterimFinancialStatementsfor thesix-monthperiodendedJuly1,2012havebeenpreparedinaccordancewithInternationalAccountingStandard34 ("IAS34").BasedonUSGAAP,netincome,asexplainedinthetablebelow,ismeasureddifferentlyfromnetincome basedonIFRSasadoptedbytheEU.

For the six-month period ended July 1, 2012 and June, 26, 2011	Unaudited	Unaudited
	2012	2011
(inmillions)	EUR	EUR
Net income for management reporting purposes for U.S. GAAP	573.9	827.1
Developmentexpenditures	74.7	(19.4)
Share-basedpayments	0.2	(0.2)
Reversalofwritedowns	7.2	3.0
Incometaxes	2.9	16.4
Net income for IFRS	658.9	826.9

SetforthbelowarecertainextractsofourConsolidatedCondensedIncomeStatementdataonasemi-annualbasis (basedonIAS34):

2011	2012
EUR	EUR	(inmillions)
2,981.6	2,479.6	Totalnetsales
1,696.2	1,469.0	Costofsales
1,285.4	1,010.6	Grossprofitonsales
258.4	150.2	Researchanddevelopmentcosts
104.8	107.2	Selling,generalandadministrativecosts
922.2	753.2	Operatingincome
0.7	(1.1)	Interestincome(expense),net
922.9	752.1	Incomebeforeincometaxes
(96.0)	(93.2)	Provisionforincometaxes
826.9	658.9	Netincome

Thefollowingtableshowsasummaryofkeyfinancialfiguresonasemi-annualbasis:

	2012	2011
Netsales(EURmillion)	2,479.6	2,981.6
Netsystemsales(EURmillion)	2,034.8	2,618.0
Netserviceandfieldoptionsales(EURmillion)	444.8	363.6
Salesofsystems(inunits)	96	126
Salesofnewsystems(inunits)	89	114
Salesofusedsystems(inunits)	7	12
Grossprofitonsalesasapercentageofnetsales	40.8	43.1
Averagesellingprice(ASP)oftotalsystemsales(EURmillion)	21.2	20.8
Averagesellingprice(ASP)ofnewsystemsales(EURmillion)	22.7	22.6
Averagesellingprice(ASP)ofusedsystemsales(EURmillion)	2.4	3.5
ValueofsystemsbacklogexcludingEUV(EURmillion)1	1,503.4	2,755.5
SystemsbacklogexcludingEUV(inunits)1	55	105
AveragesellingpriceofsystemsbacklogexcludingEUV(EURmillion)1	27.3	26.2

1 ThroughJuly1,2012atotalof6NXE:3100systemshavebeenshipped(June26,2011:4).Fourofthesesystemswererecognizedinnetsystemsales (3systemsinthesecondhalfyearof2011andoneinthefirsthalfyearof2012)(June26,2011:nil),onewasshippedundertheconditionsofan operatingleasecontractandonewasshippedtoaresearchinstitute.

Consolidated Sales and Gross Profit

NetsalesdecreasedbyEUR502.0millionfromEUR2,981.6millionforthefirsthalfof2011toEUR2,479.6millionfor thefirsthalfof2012whichismainlycausedbyadecreaseinthenumberofsystemsrecognizedfrom126systemsinthe firsthalfof2011to96systemsinthefirsthalfof2012.

GrossprofitonsalesdecreasedfromEUR1,285.4millionor43.1percentofnetsalesforthefirsthalfof2011toEUR 1,010.6millionor40.8percentofnetsalesforthefirsthalfof2012.Themaindriversforthedecreaseofgrossprofitin thefirsthalfyearof2012comparedtothefirsthalfyearof2011arelowersaleslevels(includingoneEUVsystemwith zeromargin)andincreasedadditionstotheprovisionforobsoleteinventorycausedbycertainobsoletepartsdueto technologicaldevelopmentanddesignchanges.

Westarted2012withabacklogof71systems.Duringthefirsthalfof2012,webookedordersfor79systemsand recognizedsalesfor95systems(excludingEUV:1system).Thisresultedinabacklogof55systemsasofJuly1,2012. ThetotalvalueofoursystemsbacklogasofJuly1,2012amountedtoEUR1,503.4millionwithanASPofEUR27.3 million,reflectingamixofsystemsforallchiplayers.ThesystemsbacklogasofDecember31,2011amountedtoEUR 1,732.5millionwithanASPofEUR24.4million.

Research and Development

Researchanddevelopment("R&D")investments(whichincludeR&Dcosts,netofcreditsandadditionstoother intangibleassetsregardingdevelopmentexpenditures)increasedbyEUR3.2millionor1.1percentfromEUR290.1 millionforthefirsthalfof2011(EUR258.4millionR&DcostsandEUR31.7millionadditiontootherintangibleassets regardingdevelopmentexpenditures)toEUR293.3million(EUR150.2millionR&DcostsandEUR143.1millionaddition tootherintangibleassetsregardingdevelopmentexpenditures)forthefirsthalfof2012.ThetotalR&Dinvestments wereapproximatelyatthesamelevelasduringthefirsthalfof2011.Theincreaseintheadditionsinintangibleassets regardingcapitalizeddevelopmentexpendituresmainlyrelatetoEUV(ExtremeUltravioletlithography)andanenhanced versionoftheNXT.

Cash Flows from Operating Activities

WegeneratedpostivenetcashbyoperatingactivitiesofEUR609.6millionandEUR1,631.6millioninthefirsthalfof 2012and2011respectively.Lowernetcashprovidedbyoperatingactivitiesinthefirsthalfof2012relatestolower saleslevelscomparedtothefirsthalfof2011.Furthermoreoperatingcashismainlynegativelyimpactedbyincreased inventoriesinrelationtoEUV,loweramountsofEUVdownpaymentsreceivedandadecreaseinaccountspayabledue topaymentsofourlargestsupplieratquarterend.

Cash Flows from Investing Activities

WeusedEUR1,079.1millionforinvestingactivitiesinthefirsthalfof2012andEUR159.1millioninthefirsthalfof 2011.Investingactivitiesinthefirsthalfof2012significantlyincreasedcomparedtothefirsthalfyearof2011asa resultofpurchasingDutchTreasuryCertificatesanddepositswiththeDutchGovernment.

Cash Flows from Financing Activities

NetcashusedinfinancingactivitieswasEUR414.3millioninthefirsthalfof2012comparedtoEUR666.0millioninthe firsthalfof2011.Netcashusedinfinancingactivitiesinthefirsthalfof2012mainlyincludedEUR188.9milliondividend paymentandEUR244.5millionsharebuybacks.

Auditors' Involvement

ThisStatutoryInterimReportandtheConsolidatedCondensedInterimFinancialStatementsincludedhereinhavenot beenauditedorreviewedbyanexternalauditor.

2012 Second Half Year Perspectives

Operational outlook

Weexpectsalestoremainsteadyinthesecondhalfof2012whichlookssustainedbyanincreaseofNANDmemory criticallayersystemsshipments,stabilityofDRAMmemorysystemssales,andslower28/32nmLogicinthesecond halfcomparedwiththefirsthalf.Theexactlevelofsalesachievedinthesecondhalfwilldependonthestrengthof NANDpickup,itselffueledbynewultrabookPCsandnewsmartphoneramps.Onthetechnologyfront,weexpect toshipthefirstoftheNXE:3300,ourproduction-capableExtremeUltraviolet(EUV)system,bytheendofthisyear orearlynextyearandtherestofour11unitorderin2013.Thesetoolswillbeusedforprocessdevelopment.We arefurthermoremakingprogressinpreparingEUVlithographyfor2014deviceproduction,evidencedbycustomer commitmenttopurchasefouradditionalproductionsystemsfordeliveryin2014.Thiscommitmentisenabledbythe datagatheredonsourcepowerincreaseandbysteadyperformanceofthesixunitsalreadyinthefield.

Financial outlook

ThefollowingtablesetsforthoursystemsbacklogasofJuly1,2012andDecember31,2011:

	July 1, 2012	December 31, 2011
NewsystemsbacklogexcludingEUV(inunits)	42	61
UsedsystemsbacklogexcludingEUV(inunits)	13	10
TotalsystemsbacklogexcludingEUV(inunits)	55	71
ValueofnewsystemsbacklogexcludingEUV(EURmillion)	1,414.7	1,702.7
ValueofusedsystemsbacklogexcludingEUV(EURmillion)	88.7	29.8
ValueoftotalsystemsbacklogexcludingEUV(EURmillion)	1,503.4	1,732.5
AveragesellingpriceofnewsystemsbacklogexcludingEUV(EURmillion)	33.7	27.9
AveragesellingpriceofusedsystemsbacklogexcludingEUV(EURmillion)	6.8	3.0
AveragesellingpriceoftotalsystemsbacklogexcludingEUV(EURmillion)	27.3	24.4

Oursystembacklogincludesonlysystemordersforwhichwrittenauthorizationshavebeenacceptedandshipment dateswithin12monthshavebeenassigned.Historically,ordershavebeensubjecttocancellationordelayby customers.Duetopossiblecustomerchangesindeliverschedulesandtocancellationoforders,oursystembacklogat anyparticulardateisnotnecessarilyindicativeofactualsalesforanysucceedingperiod.

ThesecondhalfrevenuelevelisexpectedtobebetweenEUR2.2billionand2.4billion.

TheBoardofManagement, Veldhoven,July18,2012

Managing Directors' Statement

TheBoardofManagementherebydeclaresthat,tothebestofitsknowledge,theConsolidatedCondensedInterim FinancialStatementspreparedinaccordancewithIAS34,"InterimFinancialReporting",provideatrueandfairview oftheassets,liabilities,financialpositionandprofitorlossofASMLHoldingN.V.andtheundertakingsincludedinthe consolidationtakenasawholeandthattheManagementBoardReportincludesafairreviewoftheinformationrequired 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 FrédéricJ.M.Schneider-Maunoury,ExecutiveVicePresident,ChiefOperatingOfficer

Veldhoven,July18,2012

Consolidated Condensed Interim Financial Statements

Consolidated Condensed Interim Financial Statements

• ConsolidatedCondensedIncomeStatement
• ConsolidatedCondensedStatementofComprehensiveIncome
• ConsolidatedCondensedStatementofFinancialPosition
• ConsolidatedCondensedStatementofChangesinEquity
• ConsolidatedCondensedStatementofCashFlows
• NotestotheConsolidatedCondensedInterimFinancialStatements

Consolidated Condensed Income Statement

	For the six-month period ended July 1, 2012 and June, 26, 2011	Unaudited	Unaudited
Notes		2012	2011
	(inthousands,exceptpersharedata)	EUR	EUR
12	Netsystemsales	2,034,805	2,618,045
12	Netserviceandfieldoptionsales	444,860	363,538
	Total net sales	2,479,665	2,981,583
	Costofsystemsales	1,234,715	1,510,062
	Costofserviceandfieldoptionsales	234,357	186,099
	Total cost of sales	1,469,072	1,696,161
	Gross profit on sales	1,010,593	1,285,422
	Researchanddevelopmentcosts	150,168	258,411
	Selling,generalandadministrativecosts	107,160	104,840
	Operating income	753,265	922,171
	Interestincome	13,296	15,312
	Interestcharges	(14,442)	(14,575)
	Income before income taxes	752,119	922,908
11	Provisionforincometaxes	(93,183)	(95,958)
	Net income	658,936	826,950
6	Basicnetincomeperordinaryshare	1.60	1.91
6	Dilutednetincomeperordinaryshare1	1.59	1.89
	Numberofordinarysharesusedincomputing
	pershareamounts(inthousands):
	Basic	410,618	432,928
	Diluted1	413,837	436,461

1 ThecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderASMLstockoptionplansandtheissuanceof sharesunderASMLshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuancewouldbeanti-dilutive.

Consolidated Condensed Statement of Comprehensive Income

Unaudited	Unaudited	For the six-month period ended July 1, 2012 and June, 26, 2011
2011	2012
EUR	EUR	(inthousands)
826,950	658,936	Net income
		Other comprehensive income:
		Foreign currency translation, net of taxes:
1,769	(1,817)	Gain(loss)ontranslationofforeignoperations
		Derivative financial instruments, net of taxes:
53,169	(15,293)	Fairvaluegain(loss)forthesix-monthperiod
(30,843)	8,215	Transferstonetincome
24,095	(8,895)	Other comprehensive income for the period, net of taxes
851,045	650,041	Total comprehensive income for the period, net of taxes
851,045	650,041	AttributabletoEquityholders

Consolidated Condensed Statement of Financial Position

	Unaudited
Notes	July 1, 2012	December 31, 2011
(inthousands)	EUR	EUR
Assets
Property,plantandequipment	1,169,223	1,053,610
Goodwill	159,507	155,124
Otherintangibleassets	356,999	267,988
11 Deferredtaxassets	213,154	212,255
Derivativefinancialinstruments	81,352	92,534
Otherassets	205,735	211,058
Total non-current assets	2,185,970	1,992,569
7 Inventories	1,737,520	1,632,678
11 Currenttaxassets	23,636	32,105
Derivativefinancialinstruments	29,985	33,817
Financereceivables	122,291	78,853
8 Accountsreceivable	631,715	880,627
Otherassets	179,379	176,732
4 Short-terminvestments	849,980	-
4 Cashandcashequivalents	1,851,790	2,731,782
Total current assets	5,426,296	5,566,594
Total assets	7,612,266	7,559,163
Equity and liabilities
Equity	3,958,967	3,719,805
Long-termdebt	738,510	730,122
Derivativefinancialinstruments	3,381	3,210
11 Deferredandothertaxliabilities	239,671	203,298
Provisions	9,497	10,012
9 Accruedandotherliabilities	587,469	659,889
Total non-current liabilities	1,578,528	1,606,531
Provisions	2,392	2,326
Derivativefinancialinstruments	11,868	37,149
Currentportionoflong-termdebt	2,598	2,587
11 Currentandothertaxliabilities	12,569	14,999
9 Accruedandotherliabilities	1,699,013	1,731,497
Accountspayable	346,331	444,269
Total current liabilities	2,074,771	2,232,827
Total equity and liabilities	7,612,266	7,559,163

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, 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
Financialinstruments,netoftaxes		-	-	-	-	22,326	-	22,326
Total comprehensive income		-	-	-	-	24,095	826,950	851,045
Purchases of treasury shares3	(13,185)	-	-	-	(373,801)	-	-	(373,801)
Share-based payments		-	2,620	-	-	-	-	2,620
Dividend paid		-	-	(172,645)	-	-	-	(172,645)
Issuance of shares	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
Netincome		-	-	-	-	-	667,121	667,121
Foreigncurrencytranslation,netoftaxes		-	-	-	-	(15,740)	-	(15,740)
Financialinstruments,netoftaxes		-	-	-	-	25,027	-	25,027
Total comprehensive income		-	-	-	-	9,287	667,121	676,408
Purchases of treasury shares3	(12,490)	-	-	-	(326,651)	-	-	(326,651)
Cancellation of treasury shares		(1,897)	710	(372,614)	373,801	-	-	-
Share-based payments		-	5,199	-	-	-	-	5,199
Issuance of shares	844	-	(3,316)	(4,127)	18,988	-	-	11,545
Development expenditures		-	-	(20,962)	-	20,962	-	-
Balance at December 31, 2011	413,669	38,816		920,478 1,525,238	(417,837)	159,039		1,494,071 3,719,805
Appropriation of net income		-		- 1,494,071	-	-	(1,494,071)	-
Netincome		-	-	-	-	-	658,936	658,936
Foreigncurrencytranslation,netoftaxes		-	-	-	-	(1,817)	-	(1,817)
Financialinstruments,netoftaxes		-	-	-	-	(7,078)	-	(7,078)
Total comprehensive income		-	-	-	-	(8,895)	658,936	650,041
Purchases of treasury shares3	(7,114)	-	-	-	(252,396)	-	-	(252,396)
Cancellation of treasury shares		(1,030)	-	(293,722)	294,752			-
Share-based payments		-	9,920	-	-	-	-	9,920
Dividend paid		-	-	(188,892)	-	-	-	(188,892)
Issuance of shares	1,635	-	(5,294)	(2,850)	28,633	-	-	20,489
Development expenditures		-	-	(87,543)	-	87,543	-	-
Balance at July 1, 2012 (unaudited)	408,190	37,786		925,104 2,446,302	(346,848)	237,687		658,936 3,958,967

1 AsofJuly1,2012,thenumberofissuedshareswas419,852,514.Thisincludesthenumberofissuedandoutstandingsharesof408,190,137andthe numberoftreasurysharesof11,662,377.AsofJune26,2011,thenumberofissuedshareswas444,480,095.Thisincludedthenumberofissuedand outstandingsharesof425,315,091andthenumberoftreasurysharesof19,165,004.

2 Otherreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures. 3 Duringthesix-monthperiodendedJuly1,2012,ASMLrepurchasedsharesforanamountofEUR252.4million(December31,2011:EUR700.5 million).AsofJuly1,2012,EUR7.9millionofthetotalrepurchaseamountremainedunpaidandisrecordedinaccruedandothercurrentliabilities (December31,2011:nil).

Consolidated Condensed Statement of Cash Flows

	For the six-month period ended July 1, 2012 and June, 26, 2011	Unaudited	Unaudited
		2012	2011
Notes	(inthousands)	EUR	EUR
	Cash Flows from Operating Activities
	Netincome	658,936	826,950
	Adjustmentstoreconcilenetincometonetcashflowsfromoperatingactivities:
	Depreciationandamortization	157,438	138,227
	Impairment	1,055	551
	Lossondisposalofproperty,plantandequipment	1,544	1,898
	Share-basedpayments	8,723	4,796
8	Allowancefordoubtfulreceivables	276	1,173
7	Allowanceforobsoleteinventory	61,631	13,505
11	Deferredincometaxes	34,803	25,149
	Changesinassetsandliabilities:
8	Accountsreceivable	243,648	292,353
	Financereceivables	(43,438)	(20,353)
7	Inventories¹	(314,475)	(259,531)
	Otherassets	59,569	(26,110)
9	Accruedandotherliabilities	(143,290)	588,404
	Accountspayable	(116,623)	40,144
11	Incometaxespayable	49,829	93,117
	Cash generated from operations	659,626	1,720,273
	Interestreceived	27,837	27,340
	Interestpaid	(35,105)	(35,115)
11	Incometaxespaid	(42,815)	(80,934)
	Net cash provided by operating activities	609,543	1,631,564
	Cash Flows from Investing Activities
	Purchaseofproperty,plantandequipment¹	(86,063)	(127,321)
	Purchaseofintangibleassets	(143,054)	(31,730)
4	Purchaseofavailableforsalesecurities	(849,980)	-
	Net cash used in investing activities	(1,079,097)	(159,051)
	Cash Flows from Financing Activities
13	Dividendpaid	(188,892)	(172,645)
13	Purchaseofshares²	(244,562)	(365,680)
	Netproceedsfromissuanceofshares	20,514	23,623
	Depositsfromcustomers	-	(150,000)
	Repaymentofdebt	(1,327)	(1,265)
	Net cash used in financing activities	(414,267)	(665,967)
	Netcashflows	(883,821)	806,546
	Effectofchangesinexchangeratesoncash	3,829	(14,272)
	Net increase in cash and cash equivalents	(879,992)	792,274
	Cashandcashequivalentsatbeginningoftheyear	2,731,782	1,949,834
	Cash and cash equivalents at July 1, 2012 and June 26, 2011	1,851,790	2,742,108

1 AnamountofEUR149.5million(2011:EUR156.2million)oftheadditionsinproperty,plantandequipmentrelatestonon-cashtransfersfrom inventoryandanamountofEUR39.8million(2011:EUR7.5million)ofthedisposalsofproperty,plantandequipmentrelatestonon-cashtransfersto inventory.Sincethetransfersbetweeninventoryandproperty,plantandequipmentarenon-cashevents,thesearenotreflectedinthisConsolidated CondensedStatementofCashFlows.

2 Duringthesix-monthperiodendedJuly1,2012,ASMLrepurchasedsharesforanamountofEUR252.4million(June26,2011:EUR373.8million).As ofJuly1,2012,EUR7.9millionofthetotalrepurchaseamountremainedunpaidandisrecordedinaccruedandothercurrentliabilities(June26,2011: 8.1).

Notes to the Consolidated Condensed Interim Financial Statements

1. General Information

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

TheConsolidatedCondensedInterimFinancialStatementsincludetheaccountsofASMLHoldingN.V.,allofitsmajority ownedsubsidiariesandtheSpecialPurposeEntitiesoverwhichASMLhascontrol(togetherreferredtoas"ASML"or "theCompany").

TheConsolidatedCondensedInterimFinancialStatementsoftheCompanywereauthorizedforissuebytheBoardof ManagementonJuly18,2012.

TheConsolidatedCondensedInterimFinancialStatementshavenotbeenauditedorreviewedbyanexternalauditor.

2. Basis of Preparation

TheConsolidatedCondensedInterimFinancialStatementsforthesix-monthperiodendedJuly1,2012havebeen preparedinaccordancewithInternationalAccountingStandard34,"InterimFinancialReporting".TheConsolidated CondensedInterimFinancialStatementsdonotincludealltheinformationanddisclosuresrequiredintheAnnual StatutoryFinancialStatementsandshouldbereadinconjunctionwiththeStatutoryFinancialStatements2011, whichhavebeenpreparedinaccordancewithInternationalFinancialReportingStandards("IFRS")asadoptedbythe EuropeanUnion("EU").

TheConsolidatedCondensedInterimFinancialStatementsarestatedinthousandsofeuros("EUR")unlessotherwise indicated.

3. Summary of Significant Accounting Policies

TheaccountingpoliciesadoptedinthepreparationoftheConsolidatedCondensedInterimFinancialStatementsare consistentwiththoseappliedinthepreparationoftheStatutoryFinancialStatements,exceptforshort-terminvestments andincometaxexpense.

Short-term investments

Investmentswithoriginalmaturitieslongerthanthreemonthsandremainingmaturitiesoflessthanoneyearare presentedasshort-terminvestments.Theshort-terminvestmentsareclassifiedasavailable-for-saleandare statedatfairvalue.Gainsandlosses,otherthanimpairmentsandforeignexchangeresultsarerecognizedinOther ComprehensiveIncomeuntiltheshort-terminvestmentsarederecognized.Uponderecognitionthecumulativegainor lossrecognizedinOtherComprehensiveIncomeisreclassifiedtotheConsolidatedCondensedIncomeStatement.

Ouravailable-for-salefinancialinstrumentsconsistofDutchTreasurycertificatesanddepositswiththeDutch Government.DutchTreasurycertificatesaretradedinanactivemarketandthefairvalueisdeterminedbasedonquoted marketprices.Thefairvaluesofdepositsaredeterminedwithreferencetoquotedmarketpricesofsimilairinstruments ordiscountedcashflowanalyses.

Income tax expense

Incometaxexpenseisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateexpectedforthe fullfinancialyear.

Adoption of new and revised International Financial Reporting Standards

NonewstandardsandinterpretationsbecameeffectiveasofJanuary1,2012whichimpacttheConsolidated CondensedInterimFinancialStatements.

4. Liquidity

OurprincipalsourcesofliquidityasofJuly1,2012consistofEUR1,851.8millioncashandcashequivalents(December 31,2011:cashandcashequivalentsEUR2,731.8million),EUR850.0millionofshort-terminvestments(December31, 2011:EURnil),EUR500.0millionofavailablecreditfacilities(December31,2011:EUR500.0million)andexpected futurecashflowsfromoperations.

Ourshort-terminvestmentsareprimarilytofacilitateliquidityandcapitalpreservation.Duringthefirsthalfof2012ASML investedpartofitscashandcashequivalentsincertainshort-terminvestmentswithmaturitieslongerthan3months butwithinoneyear.TheinvestmentsareinEuroandconsistofDutchTreasurycertificatesanddepositswiththeDutch Government.

5. Critical Accounting Judgments and Key sources of Estimation uncertainty

IntheprocessofapplyingtheCompany'saccountingpolicies,managementhasmadesomejudgmentsthathavea significanteffectontheamountsrecognizedintheConsolidatedCondensedInterimFinancialStatements.Thecritical accountingjudgmentsandkeysourcesofestimationuncertaintyareconsistentwiththosedescribedintheStatutory FinancialStatements2011.

6. Earnings per Share

Theearningspershare("EPS")datahavebeencalculatedasfollows:

For the six-month period ended July 1, 2012 and June, 26, 2011	Unaudited	Unaudited
	2012	2011
(inthousands,exceptpersharedata)	EUR	EUR
Net income	658,936	826,950
Weighted average number of shares outstanding (after deduction of treasury stock) during the half year	410,618	432,928
Basic net income per ordinary share	1.60	1.91
Weighted average number of shares: Plussharesapplicableto:	410,618	432,928
Stockoptions/Restrictedshares1	3,219	3,533
Dilutive potential common shares	3,219	3,533
Adjusted weighted average number of shares	413,837	436,461
Diluted earnings per share1	1.59	1.89

1 ThecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderASMLstockoptionplansandtheissueof sharesunderASMLshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuewouldbeanti-dilutive.

7. Inventories

TheincreasedinventorybalancecomparedtoDecember31,2011mainlyconsistsofinventoriesregardingNXEandNXT systems.

8. Accounts Receivable

Thedecreaseintheaccountsreceivablesreflectscashinflowsfromourcustomersduringthefirsthalfof2012amongst otherregardingreceivablesthatwerepastduebutnotimpairedasofDecember31,2011.

9. Accrued and other liabilities

Accruedandotherliabilitiesconsistofthefollowing:

	Unaudited
	July 1, 2012	December 31, 2011
(inthousands)	EUR	EUR
Deferredrevenue	834,404	816,045
Coststobepaid	249,837	260,651
Downpaymentsfromcustomers¹	1,003,047	1,057,046
Personnelrelateditems	162,869	212,059
Warranty	35,018	43,273
Other	1,307	2,312
Total accrued and other liabilities	2,286,482	2,391,386
Less:non-currentportionofaccruedandotherliabilities¹	587,469	659,889
Current portion of accrued and other liabilities	1,699,013	1,731,497

1 TheCompanyreceivesadvancesfromcustomerspriortoshipmentforsystemsincludedinASML'scurrentproductportfolioorsystemscurrently underdevelopmentintheformofdownpayments,mainlyrelatingtoEUV.

10. Commitments, Contingencies and Guarantees

Thenature,scaleandscopeofthecommitments,contingenciesandguaranteesisinlinewiththecommitments, contingenciesandguaranteesdisclosedintheStatutoryFinancialStatements2011.

11. Income Taxes

Incometaxexpenseisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateforthefull financialyear.Theestimatedannualtaxrateforthesix-monthperiodendedJuly1,2012is12.4percentcomparedto 10.4percentforthesix-monthperiodendedJune26,2011.

Currenttaxassetshavedecreasedasaresultoftaxesrepaidbytaxauthorities.Themajorityofthedeferredandother taxliabilitiesisclassifiedasnon-currentbecausepaymentofcashisnotexpectedwithinoneyear.

12. Segment Disclosure

ASMLoperatesinonereportablesegmentforthedevelopment,manufacturing,marketingandservicingoflithography equipment.ASML'sChiefExecutiveOfficerhasbeenidentifiedasthechiefoperatingdecision-maker,whoreviews operatingresultstomakedecisionsaboutallocatingresourcesandassessingperformancefortheentireCompany.

Managementreportingincludesnetsystemsalesfiguresofnewandusedsystems.Netsalesfornewandusedsystems wereasfollows:

Unaudited Unaudited	For the six-month period ended July 1, 2012 and June, 26, 2011
2012 2011
EUR	(inthousands)
Newsystems 2,018,231 2,575,460
16,574 42,585	Usedsystems
2,034,805 2,618,045	Total net system sales

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

For the six-month period ended July 1, 2012 and June, 26, 2011	Unaudited	Unaudited
	2012	2011
(inthousands)	EUR	EUR
Netsystemsales	2,034,805	2,618,045
Netserviceandfieldoptionsales	444,860	363,538
Total net sales	2,479,665	2,981,583
Costofsales	1,425,659	1,642,012
Gross profit on sales	1,054,006	1,339,571
Researchanddevelopmentcosts	289,952	290,106
Selling,generalandadministrativecosts	110,095	105,262
Income from operations	653,959	944,203
Interestincome(expense),net	(243)	3,692
Income before income taxes	653,716	947,895
Provisionforincometaxes	(79,819)	(120,858)
Net income for management reporting purposes	573,897	827,037
DifferencesU.S.GAAPandIFRS	85,039	(87)
Net income for IFRS	658,936	826,950

SegmentperformanceisalsoevaluatedbytheCompany'smanagementbasedonUSGAAPfortotalassets.Thetable belowpresentsthemeasurementsandthereconciliationtototalassetsintheConsolidatedCondensedInterimFinancial Statements:

	Unaudited
	July 1, 2012	December 31, 2011
(inthousands)	EUR	EUR
Totalassetsformanagementreportingpurposes	7,217,801	7,260,815
DifferencesU.S.GAAPandIFRS	394,465	298,348
TotalassetsforIFRS	7,612,266	7,559,163

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 July 1, 2012:
Japan	168,033	79,542
Korea	757,257	18,331
Singapore	27,939	1,021
Taiwan	744,612	45,938
RestofAsia	129,092	1,738
Europe	129,525	1,462,840
UnitedStates	523,207	282,054
Total	2,479,665	1,891,464
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

Duringthesix-monthperiodendedJuly1,2012,salestothelargestcustomeraccountedforEUR652.9millionor26.3 percentofnetsales(June26,2011:EUR616.5millionor20.7percent).

ASML'sthreelargestcustomers(basedonnetsales)accountedfor42.5percentofaccountsreceivableatJuly1,2012 and17.8percentofaccountsreceivableatJune26,2011.

Substantiallyalloursaleswereexportsalesduringthesix-monthperiodendedJuly1,2012andJune26,2011.

13. Dividends and Share Buybacks

Aspartofourfinancingpolicy,weaimtopayanannualdividendthatwillbestableorgrowingovertime.Annually,the BoardofManagementwill,uponpriorapprovalfromtheSupervisoryBoard,submitaproposaltotheAnnualGeneral MeetingofShareholderswithrespecttotheamountofdividendtobedeclaredwithrespecttoprioryear.

IntheAnnualGeneralMeetingofShareholdersofApril25,2012,adividendofEUR0.46perordinaryshareofEUR 0.09nominalvaluewasadoptedfor2011.Asaresult,atotaldividendamountofEUR188.9millionwaspaidtoour shareholdersonMay15,2012.

Inadditiontodividendpayments,weintendtoreturncashtoourshareholdersonaregularbasisthroughsharebuy backsorrepaymentofcapital,subjecttoouractualandanticipatedlevelofcashgeneratedfromoperations,thecash requirementsforinvestmentinourbusiness,ourcurrentsharepriceandothermarketconditionsandrelevantfactors.

OnJanuary18,2012,ASMLannouncedtoincreasethesizeofitsexistingsharebuybackprogramtoamaximum amountofEUR1,130milliontobecompletedin2012.Sincethestartofthisprogramin2011uptoJuly1,2012ASML haspurchased32.8millionsharesforatotalamountofEUR952.2million.Therepurchasedshareshavebeen,orwillbe cancelled.

Furthermore,onJanuary18,2012,ASMLannounceditsintentiontopurchaseupto2.2millionofadditionalshares during2012forthepurposeofcoveringoutstandingemployeestockandstockoptionplans.Theseshareswillbeheld astreasurysharespendingdeliverypursuanttosuchplans.UptoJuly1,2012noshareshadyetbeenpurchasedunder thisprogram.

Asresultofthecustomerco-investmentprogramasfurtherdisclosedinthesubsequenteventssection,ASMLhas suspendeditsregularsharebuybackprogramsuntilfurthernotice.ASMLintendstoresumesharebuybackswhen permittedunderapplicableregulations.

14. Related Party Transactions

ConsistentwiththeCompany'scorporateresponsibilitiestoitssurroundingcommunityandtogetherwithseveralother companiesintheregion,inprioryearASMLenteredintoaloanagreementwithalocalsportsclubPSVN.V.;pursuantto whichASMLprovidedPSVN.V.,asofAugust1,2011,a14year,interestfree,subordinatedloanofEUR5.0million.As perJune30,2012thechairmanoftheSupervisoryBoardofASML,Mr.ArthurvanderPoelandChiefFinancialOfficerof ASML,Mr.PeterWenninkresignedasmembersoftheSupervisoryBoardofPSVN.V.,thereforetheloanagreementwith PSVN.V.isconcludedtonolongerclassifyasarelatedpartytransactionfromthatdateonwards.

Duringthefirsthalfof2012,therehavebeennotransactionsandtherearecurrentlynotransactions,betweenASMLor anyofitssubsidiaries,andanysignificantshareholderandanydirectororofficeroranyrelativeorspousethereofother thanordinarycoursecompensationarrangements.Duringthefirsthalfof2012,therehasbeenno,andatpresentthere isno,outstandingindebtednesstoASMLowedorowingbyanydirectororofficerofASMLoranyassociatethereof, otherthanthevirtualfinancingarrangementwithrespecttosharesandstockoptions.

15. Subsequent Events

SubsequenteventshavebeenevaluatedbytheCompanyuntilJuly18,2012whichistheissuancedateofthisinterim report2012.

OnJuly9,2012,ASMLenteredintoaninvestmentagreementwithIntelCorporation(the"InvestmentAgreement") pursuanttowhichIntelCorporation("Intel")willinvestinordinarysharesofASMLthatwillbeheldonIntel'sbehalfby aDutchfoundation(Stichting Administratiekantoor)(the"Stichting")andwillbesubjecttoprovisionsofaShareholder Agreement(the"ShareholderAgreement").ConcurrentwiththesigningoftheInvestmentAgreement,ASMLandIntel alsoenteredinto(i)twonon-recurringresearchanddevelopmentengineering(NRE)fundingagreements(the"NRE FundingAgreements"),pursuanttowhichIntelhasagreedtofundaportionofASML'sresearchanddevelopment expenses,dedicatedcapitalexpendituresandnon-recurringengineeringcostsrelatedtothedevelopmentof450mm andextremeultra-violet(EUV)lithographyequipment,and(ii)acommercialagreement,settingforththetermsofsales ofEUVand450mmsystemsbyASMLtoIntel(the"CommercialAgreement").Amoredetaileddescriptionofeachofthe InvestmentAgreement,theShareholderAgreement,theNREFundingAgreementsandtheCommercialAgreementisset forthbelow.

The Investment Agreement

PursuanttotheInvestmentAgreement,ASMLhasagreedtoselltoIntelordinarysharesequalto15%ofitsissued ordinarysharesaftergivingeffecttotheSyntheticBuyback(asdefinedbelow).Thepurchasepricewillbe€39.91per share,whichwasagreedbyreferencetotheaverageofthevolumeweightedaveragepriceofASML'sordinaryshares onEuronextAmsterdamforthetwentytradingdaysuptoandincludingJuly6,2012.

IssuanceofASMLOrdinarySharestoIntel

IntelwillinvestinASMLordinarysharesintwotranches:anissuanceof41,985,250ordinaryshares(the"InitialShares") andanadditionalissuanceofASMLordinaryshares(the"AdditionalShares",andtogetherwiththeInitialShares,the "IntelShares")suchthatthenumberofIntelSharesissuedpursuanttotheInvestmentAgreementwouldequal15%of ASML'sissuedordinaryshares,subjecttocertainadjustments,followingtheSyntheticBuyback.TheIntelShareswill notparticipateintheSyntheticBuyback(describedbelow).

TheIntelShareswillbeheldbytheStichting,whichwillissuetoInteldepositaryreceiptstherefor(the"Depositary Receipts"),subjecttothetermsoftheShareholderAgreement(describedbelow).

TheissuanceoftheInitialSharesissubjecttocustomaryclosingconditions,includingtheaccuracyoftheparties' representationsandwarranties,theabsenceofcertainmaterialadverseevents,andthereceiptofregulatoryapprovals. TheissuanceoftheAdditionalSharesissubjecttothesesameconditions,aswellastoobtainingASMLshareholder approvalsrequiredinconnectionwiththeauthorizationoftheissuanceoftheIntelSharesandtheOtherCustomer Shares(describedbelow)(andtheexclusionrelatedpreemptiverights)andtheauthorizationoftheSyntheticBuyback ("ShareholderApproval").ASMLhasagreedtoissueanoticeconveninganextraordinarygeneralmeetingwithin15days ofthedateoftheInvestmentAgreement.

ASMLhasagreedtoindemnifyIntelanditsaffiliatesforcertainlossesandexpensesrelatedtobreachesof representations,warranties,covenantsandagreementsintheInvestmentAgreementandwithrespecttocertainlegal proceedingsrelatedthereto,subjecttocertainlimitations.

Termination

TheInvestmentAgreementmaybeterminatedbyeitherpartyiftheissuanceofeitheroftheInitialSharesorAdditional ShareshasnotoccurredbyApril15,2013.Inaddition,theInvestmentAgreementmaybeterminatedbyeitherpartyin theeventofafinalcourtorderprohibitingtheclosingscontemplatedbytheInvestmentAgreementorcertainbreaches bytheotherpartyofrepresentations,warrantiesorcovenantsintheInvestmentAgreement,or,fortheAdditional Shares,ifShareholderApprovalisnotobtained.Inaddition,IntelmayterminatetheInvestmentAgreementuponthe occurrenceofcertainmaterialadverseeventsorcertainextraordinarycorporateeventsofASML.

ParticipationintheCustomerCo-InvestmentProgrambyOtherCustomers

ParticipationintheCustomerCo-InvestmentProgramalsoisbeingevaluatedbyotherASMLcustomers("Other Customers").Inparticular,ASMLwillmakeavailabletoOtherCustomerswhoenterintoNREfundingcommitments, upto10%ofASML'sissuedsharesonapost-transactionbasis(the"OtherCustomerShares")atapricenotlessthan the€39.91persharepaidbyIntel,andtheratioofOtherCustomerSharesissuedtoNREfundingcommitmentsby OtherCustomerswillnotexceedtheratioofthenumberofsharesacquiredbyInteltotheamountofIntel'sNREfunding commitments.AnysuchissuanceofsharestoOtherCustomerswillbecompletedpriortotheSyntheticBuyback(as describedbelow)andtheOtherCustomerswillnotparticipateintheSyntheticBuyback.

UseofProceedsandSyntheticShareBuyback

IfShareholderApprovalisobtained,ASMLwillusetheproceedsofthesaleoftheIntelSharesandtheOtherCustomer Sharestoconductasyntheticsharebuy-back("SyntheticBuyback").TheSyntheticBuybackwillresultinareturnof capitaltoshareholders(otherthanIntelandOtherCustomerswhoparticipateintheCustomerCo-InvestmentProgram) inanamountequaltotheproceedsfromtheshareissuancestoIntelandOtherCustomersundertheCustomerCo-InvestmentProgram,followedbyareverseshare-splitthatwillreducethenumberofASML'sissuedordinarysharesto approximatelythenumberofsharesthathadbeenissuedimmediatelypriortotheissuancetoInteloftheInitialShares.

IfShareholderApprovalisnotobtained,ASMLwillusetheproceedsoftheissuanceoftheInitialSharesforresearch anddevelopmentandtheremainderwillbeusedforgeneralcorporatepurposes,andnoSyntheticBuybackorreverse stocksplitwilloccur.TherewillbenoissuanceofAdditionalSharesorOtherCustomerSharesifShareholderApproval isnotobtained.

Shareholder Agreement

InconnectionwiththeissuanceoftheIntelShares,ASML,IntelandtheStichtingwillenterintoaShareholder Agreement,whichwillgoverncertainmattersrelatingtoIntel'sholdingofandfurtherinvestmentinASMLordinary shares,bothdirectlyandindirectlythroughtheStichting,includingthemattersdescribedbelow.OtherCustomers participatingintheCustomerCo-InvestmentProgramwillenterintoshareholder'sagreementssubstantiallysimilarto theShareholderAgreement.

VotingRights

IntelwillnotbeentitledtovotetheIntelSharesoranysharesotherwisetransferredtotheStichting(underthe circumstancesdescribedunder"—Standstill; Additional Purchases"below),exceptwhenaSuspensionEvent(as definedbelow)occursorwherethefollowingmattersareproposedatanyshareholdermeeting:(i)anissuanceofshares representing25%ormoreoftheoutstandingsharecapitalofASMLortheexclusionofpre-emptionrightsrelatingto suchanissuanceofshares;(ii)anauthorizationtorepurchase25%ormoreofASML'soutstandingsharecapitalina 12-monthperiod;(iii)theapprovalofasignificantchangeintheidentityornatureofASML,includingatransferofallor substantiallyallofASML'sbusinessorassetstoathirdparty,establishmentorcancellationofalong-lastingcooperation thatisofessentialimportancetoASMLandanacquisitionordispositionofassetswithavalueofatleastonethirdof theassetsofASML;(iv)anamendmenttothearticlesofassociationthatwoulddisproportionately(oruniquely)and adverselyaffecttherightsorbenefitsattachedtoorderivedfromtheIntelShares;(v)thedissolutionofASML;and(vi) anymergerordemergerwhichwouldresultinasignificantchangeintheidentityornatureofASML.

Standstill;AdditionalPurchases

Subjecttocertainexceptions,Intelmaynot,priortothesix-yearanniversaryofthedateoftheShareholderAgreement, acquiresharesinexcessof19.9%oftheoutstandingsharecapitalofASML.Thereareexceptionsfromtheforegoing restrictionsinthecaseofa"SuspensionEvent",whichincludescertaincircumstanceswhereathirdpartyhasacquired ormadeanoffertoacquireatleast20%ofASML'soutstandingsharesorwhereASMLhasannouncedcertainchange ofcontroltransactions,andtheforegoingrestrictionswillterminateupona"TerminationEvent"whichincludescertain changeofcontroltransactions,includingwheretheshareholdersofASMLpriortosuchatransactionarenolonger entitledtoexercise50%ofthevotesinASML'sgeneralmeetingfollowingsuchatransactionorintheeventofa delistingofASML'ssharesonEuronextAmsterdamoradelistingfromNasdaq(exceptinthecaseofavoluntary delistingwherethelistingismovedtotheNewYorkStockExchange).

IfIntelacquiresanyadditionalASMLsharesinexcessof4.99%oftheoutstandingsharesofASML,Intelisrequiredto depositsuchshareswiththeStichtinginexchangeforDepositaryReceipts.SharesheldbyIntel(thatarenotdeposited withtheStichting)willnotbesubjecttothevotingrestrictionsdescribedaboveorlock-upprovisionsdescribedbelow, butwillbesubjecttothestandstillrestrictionsdescribedabove.

TheStichtingwillcontinuetoholdASMLsharesownedbyIntel(notwithstandingterminationoftheStandstillPeriod) untiltheearlierof(i)suchtimeasIntelownslessthan2%ofASML'sshares,(ii)thedatewhentheaggregateamount ofASML'ssharesownedbyIntelandOtherCustomersrepresentslessthan5%ofASML'sissuedsharesand(iii)a TerminationEvent,followingwhichtimeDepositaryReceiptswillbeexchangedfortheunderlyingASMLshares.Ifafter suchanexchangeofDepositaryReceiptsforASMLsharesandpriortoterminationoftheShareholderAgreement(inthe circumstancesdescribedbelow)Intelacquiressharesinexcessof2%ofASML'soutstandingshares,anysharesheldby Intelinexcessof4.99%ofASML'ssharesmustbetransferredto(andheldby)theStichting.

Lock-up;OrderlySellDown

Intelmaynot,withoutpriorwrittenconsentofASML,transferanyASMLsharesorDepositaryReceiptsuntilthe earliestof(i)twoyearsandsixmonthsafterthedateoftheShareholderAgreement,(ii)terminationoftheNREFunding Agreements,and(iii)theoccurrenceofaTerminationEvent.Theforegoingrestrictiondoesnotapplyincertain circumstanceswhereathirdpartyofferstoacquireatleast20%ofASML'sshares.Intelisnotpermittedtotransferits ASMLsharesinconnectionwithanofferbeforetheendoftheoffer(ormakeanypublicstatementinsupportofsuch offer)thatisnotrecommendedbytheASMLSupervisoryBoardorManagementBoard,exceptinlimitedcircumstances. TheShareholderAgreementdoesnotrestricthedging,providedthatsuchhedgingdoesnotrequireanytransferof ASMLsharesbytheStichtingorDepositaryReceiptsbyIntel.

Inaddition,Intelmaynot(evenafterthelock-upperiodended),withoutwrittenconsentofASML,transferonEuronext Amsterdam,NasdaqoranyotherstockexchangeonwhichASML'ssecuritiesaretradedmorethan4%ofthe outstandingsharesofASMLinanysix-monthperiod(excludingblocktradesandunderwrittenoffers).Therearealso restrictionsonIntel'sabilitytotransfersharestocertaincompetitorsorcustomersofASML.

Termination

TheShareholderAgreementwillterminateuponaTerminationEventorwindingupofASML,orintheeventthat DepositaryReceiptsareexchangedforASMLsharesandnoASMLsharesarerequiredtobere-depositedwiththe Stichtingwithin18monthsofsuchexchange(inthecircumstancesdescribedabove).

NRE Funding Agreements

OnJuly9,2012,ASMLandIntelenteredintotwoNREFundingAgreementstohelpfundASML'sresearchand developmentcostsandprojectexpenditures:oneagreementrelatestothedevelopmentof450mmlithography equipment(the"450mmNREFundingAgreement")andtheotherrelatestothedevelopmentofEUVlithography equipment(the"EUVNREFundingAgreement").IntelhascommittedtoprovidefundinginanaggregateamountofEUR 553millionunderthe450mmNREFundingAgreementandfundinginanaggregateamountofEUR276millionunder theEUVNREFundingAgreement,payableoverthetermofthe450mmNREFundingAgreementandEUVNREFunding Agreement,respectively.ASMLwillretainsolecontroloverthedevelopmentof450mmlithographyequipmentandEUV lithographyequipmentandwillownallintellectualpropertycreatedbyASMLinconnectiontherewith.Theagreements providethatifASML,initsreasonablediscretion,determinestoabandoneitherthe450mmorEUVdevelopmentproject, thenthepartiesmayagreeonanalternativedevelopmentproject,andifnoalternativeisagreed,ASMLmayinvoiceIntel forfundingthathasbeencommittedandremainingamountsdueundertherelevantNREFundingAgreementtothe extentthatASML'sR&Dexpenseinanyyearexceedsaminimumthreshold.

Intel'scommitmenttoprovidefundingunderthe450mmNREFundingAgreementisconditionalontheissuanceofthe InitialShares.Intel'scommitmenttoprovidefundingundertheEUVFundingAgreementisconditionalontheissuance oftheAdditionalShares.IftheInitialClosingoccursbuttheAdditionalClosingdoesnotoccurandasaresulttheEUV NREFundingAgreementdoesnotbecomeeffective,thepartieswilldiscussanalternativeEUVfundingagreement.The NREFundingAgreementswillterminateonDecember31,2017oruponpre-paymentbyInteloftheaggregateamountof fundingowedundertheNREFundingAgreements.

Commercial Agreement

OnJuly9,2012,ASMLandIntelenteredintotheCommercialAgreement,pursuanttowhichASMLandIntelestablished acontractualframeworkforInteltopurchaseequipmentrelatedtothe450mmandEUVlithographyequipment.Under thisagreement,Intelhascommittedtopurchasespecifiednumbersof450mmandEUVtools.Theagreementsets forthpricingtermsforthetoolsaswellasmilestonesrelatedtoproductdeliveries,andprovidesforcertaincommercial discountsintheformofcreditsinexchangeforIntel'searlypurchasecommitmentsandvolumepurchasecommitments andforspecifiedadditionalcreditsintheeventthatcertainschedulesarenotmet.Inaddition,subjecttocertain conditions,ASMLhasagreedtoinstallsufficientcapacitytomeetIntel'sforecasted450mmlithographyequipment needsthrough2022.TheCommercialAgreementbecomeseffectiveupontheInitialClosing.

Certain Accounting Considerations

InaccordancewithIFRS,weexpectthefollowingaccountingtreatment:

Theagreementsasdescribedaboveareaccountedforasasinglemultiple-elementarrangement.Asaresult,the fundingwillinitiallyberecordedonthebalancesheetandisexpectedtoberecognizedintheincomestatementwhen thecreditsareearned.

Veldhoven,theNetherlands July18,2012

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

Other Information

Information and Investor Relations

Financial calendar

September 7, 2012 ExtraordinaryGeneralMeetingofShareholders

October 17, 2012 AnnouncementofThirdQuarterResultsfor2012

January 17, 2013 AnnouncementofFourthQuarterResultsfor2012andAnnualResultsfor2012

April 24, 2013 GeneralMeetingofShareholders

Fiscal Year

ASML'sfiscalyearendsonDecember31,2012

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:corpcom@asml.com

Investor Relations

phone:+31402683938 email:investor.relations@asml.com

Formoreinformationpleasevisitour websitewww.asml.com