ASML Holding N.V. — Interim / Quarterly Report 2014

Jul 16, 2014

14 StatutoryInterim Report forthe six-monthperiod ended June29,2014

ASML Holding N.V. Statutory Interim Report for the six-month period ended June 29, 2014

Contents

• 4 Introduction
• 5 Interim Management Board Report
• 10 Managing Directors' Statement
• 11 Consolidated Condensed Interim Financial Statements
• 26 Other Information
• 29 Definitions

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

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

©2014,ASMLHoldingN.V.AllRightsReserved

Introduction

DearStakeholder,

TodaywepublishedourStatutoryInterimReportforthesix-monthperiodendedJune29,2014.Thisincludesan InterimManagementBoardReport,aManagingDirectors'StatementandConsolidatedCondensedInterimFinancial StatementspreparedinaccordancewithIAS34.

Today,wealsopublishedour2014second-quarterresultsinaccordancewithUSGAAPandIFRS-EU.

Veldhoven,July16,2014

Cautionary Statement Regarding Forward-Looking Statements

Thisdocumentcontainsstatementsrelatingtocertainprojectionsandbusinesstrendsthatareforward-looking, includingstatementswithrespecttoouroutlook,expectedcustomerdemandinspecifiedmarketsegments,expected saleslevels,systemsbacklog,ICunitdemand,expectedfinancialresults,grossmarginandexpenses,expected shipmentoftools,productivityofourtools,thedevelopmentofEUVtechnologyandthenumberofEUVsystems expectedtobeshippedandtimingofshipments,dividendpolicyandintentiontorepurchaseshares.Youcangenerally identifythesestatementsbytheuseofwordslike"may","will","could","should","project","believe","anticipate", "expect","plan","estimate","forecast","potential","intend","continue"andvariationsofthesewordsorcomparable words.Thesestatementsarenothistoricalfacts,butratherarebasedoncurrentexpectations,estimates,assumptions andprojectionsaboutthebusinessandourfuturefinancialresultsandreadersshouldnotplaceunduerelianceonthem.

Forward-lookingstatementsdonotguaranteefutureperformanceandinvolverisksanduncertainties.Actualresults maydiffermateriallyfromprojectedresultsasaresultofcertainrisksanduncertainties.Theserisksanduncertainties include,withoutlimitation,economicconditions,productdemandandsemiconductorequipmentindustrycapacity, worldwidedemandandmanufacturingcapacityutilizationforsemiconductors(theprincipalproductofourcustomer base),includingtheimpactofgeneraleconomicconditionsonconsumerconfidenceanddemandforourcustomers' products,competitiveproductsandpricing,theimpactofmanufacturingefficienciesandcapacityconstraints, thecontinuingsuccessoftechnologyadvancesandtherelatedpaceofnewproductdevelopmentandcustomer acceptanceofnewproducts,thenumberandtimingofEUVsystemsexpectedtobeshipped,ourabilitytoenforce patentsandprotectintellectualpropertyrights,theriskofintellectualpropertylitigation,availabilityofrawmaterials andcriticalmanufacturingequipment,tradeenvironment,changesinexchangerates,availablecash,distributable reservesfordividendpaymentsandsharerepurchases,andotherrisksindicatedintheriskfactorsincludedinthe sectionentitled"RiskFactors"inthisInterimReport.Theseforward-lookingstatementsaremadeonlyasofthedate ofthisdocument.Wedonotundertaketoupdateorrevisetheforward-lookingstatements,whetherasaresultofnew information,futureeventsorotherwise.

Interim Management Board Report

About ASML

ASMLmakespossibleaffordablemicroelectronicsthatimprovethequalityoflife.ASMLinventsanddevelopscomplex technologyforhigh-techlithography,metrologyandsoftwaresolutionsforthesemiconductorindustry.ASML'sguiding principleiscontinuingMoore'sLawtowardseversmaller,cheaper,morepowerfulandenergy-efficientsemiconductors. Oursuccessisbasedonthreepillars:technologyleadershipcombinedwithcustomerandsupplierintimacy,highly efficientprocessesandentrepreneurialpeople.Weareamultinationalcompanywithover70locationsin16countries, headquarteredinVeldhoven,theNetherlands.AsofJune29,2014,weemployed10,786payrollemployeesand2,820 temporaryemployees(measuredinFTEs).ASMListradedonNYSEEuronextAmsterdamandNASDAQunderthe symbolASML.

Inthefirsthalfyearof2014,wegeneratednetsalesofEUR3,040.1millionandanoperatingincomeofEUR772.4 millionor25.4percentofnetsales.Netincomeforthefirsthalfyearof2014amountedtoEUR735.1millionor24.2 percentofnetsales,representingbasicnetincomeperordinaryshareofEUR1.67.

Belowweprovideanupdateoftherisksanduncertaintieswefaceinthesecondhalfyearof2014,followedbythe ASMLOperationsUpdate,Auditor'sInvolvementand2014SecondHalfYearPerspectives.

Risk Factors

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

Wehaveassessedtherisksforthesecondhalfyearof2014andbelievethattherisksidentifiedareinlinewiththose presentedinourStatutoryAnnualReport2013.Foradetaileddescriptionoftherisksdefinedbelow,werefertoour StatutoryAnnualReport2013.

Summary

StrategicRisk

• Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberofsystems.

RisksRelatedtotheSemiconductorIndustry

• Thesemiconductorindustryishighlycyclicalandwemaybeadverselyaffectedbyanydownturn;
• Ourbusinesswillsufferifwedonotrespondrapidlytocommercialandtechnologicalchangesinthesemiconductor industry;and
• Wefaceintensecompetition.

Governmental,LegalandComplianceRisks

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

OperationalRisks

• Thenumberofsystemswecanproduceislimitedbyourdependenceonalimitednumberofsuppliersofkey components;
• Thepaceofintroductionofournewproductsisacceleratingandisaccompaniedbypotentialdesignandproduction delaysandbysignificantcosts;
• Aslithographytechnologiesbecomemorecomplex,ourR&Dprogramsbecomemoreriskyandmoreexpensive;
• Wearedependentonthecontinuedoperationofalimitednumberofmanufacturingfacilities;
• Wemaybeunabletomakedesirableacquisitionsortointegratesuccessfullyanybusinessesweacquire;and

• Ourbusinessandfuturesuccessdependonourabilitytoattractandretainasufficientnumberofadequately educatedandskilledemployees.

FinancialRisks

• Ahighpercentageofnetsalesisderivedfromafewcustomers;and
• Fluctuationsinforeignexchangeratescouldharmourresultsofoperations.

RisksRelatedtoourOrdinaryShares

• Wemaynotdeclarecashdividendsatallorinanyparticularamountsinanygivenyear;
• Restrictionsonshareholderrightsmaydilutevotingpower;and
• ParticipatingcustomersinourCCIPtogetherownasignificantamountofourordinaryshares.

ASML Operations Update

TheConsolidatedCondensedInterimFinancialStatementsforthesix-monthperiodendedJune29,2014included inthisStatutoryInterimReporthavebeenpreparedinaccordancewithIAS34.Forinternalandexternalreporting purposes,weapplyUSGAAP,whichisourprimaryaccountingstandardforsettingfinancialandoperational performancetargets.

BasedonUSGAAP,netincome,asexplainedinthetablebelow,ismeasureddifferentlyfromnetincomebasedon IFRS-EU.

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
(inmillions)	EUR	EUR
Net income based on US GAAP	647.8	341.3
Capitalizationofdevelopmentexpenditures	63.1	109.9
Share-basedpayments	4.2	0.7
Incometaxes	20.0	(12.9)
Net income based on IFRS-EU	735.1	439.0

SetforthbelowarecertainextractsofourConsolidatedCondensedStatementofProfitorLossdataonasemi-annual basis(basedonIFRS-EU):

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
(inmillions)	EUR	EUR
Totalnetsales	3,040.1	2,078.8
Costofsales	(1,742.0)	(1,277.9)
Grossprofit	1,298.1	800.9
Otherincome	40.5	30.5
Researchanddevelopmentcosts	(401.5)	(218.4)
Selling,generalandadministrativecosts	(164.7)	(131.9)
Operatingincome	772.4	481.1
Financeincome(costs),net	(1.4)	(6.9)
Incomebeforeincometaxes	771.0	474.2
Provisionforincometaxes	(35.9)	(35.2)
Netincome	735.1	439.0

Thefollowingtableshowsasummaryofkeyfinancialfiguresonasemi-annualbasis:

For the six-month period ended June 29, 2014 and June 30, 2013	Unaudited	Unaudited
(inmillionsEUR,unlessotherwiseindicated)	2014	2013
Totalnetsales	3,040.1	2,078.8
Netsystemsales	2,273.0	1,592.4
Netserviceandfieldoptionsales	767.1	486.4
Totalsalesofsystems(inunits)	71	67
Totalsalesofnewsystems(inunits)	62	59
Totalsalesofusedsystems(inunits)	9	8
Grossprofitasapercentageoftotalnetsales	42.7	38.5
ASPofsystemsales	32.0	23.8
ASPofnewsystemsales	35.9	26.2
ASPofusedsystemsales	5.5	6.1

General

OnMay30,2013weacquired100percentoftheissuedsharecapitalofCymer.Comparativefinancialinformation presentedintheConsolidatedCondensedStatementofProfitorLossthereforeincludesCymerforonemonth,whereas theConsolidatedCondensedStatementofProfitorLossforthesix-monthperiodendedJune29,2014includesCymer forsixmonths.

Consolidated Sales and Gross Profit

NetsalesincreasedbyEUR961.3milliontoEUR3,040.1millionforthefirsthalfyearof2014fromEUR2,078.8million forthefirsthalfyearof2013.Thisincreaseiscausedbyincreasednetsystemsales(EUR680.6million)andincreased netserviceandfieldoptionsales(EUR280.7million).Theincreaseinnetsystemsalesisprimarycausedbyarelatively highernumberofsystemssoldwithahigherASPwhereastheincreaseinnetserviceandfieldoptionssalesismainly causedbytheacquisitionofCymerandthecontributionofholisticlithographyproducts.

TheincreaseoftheASPofoursystemssoldcanmainlybeexplainedbytheASPofournewsystemssoldwhich increasedtoEUR35.9millionforthefirsthalfyearof2014fromEUR26.2millionforthefirsthalfyearof2013.Thiswas theresultofashiftinthemixofnewsystemssoldtowardsmorehigh-endsystemtypes(NXT:1970Ci,NXT:1960Biand includingtwoNXE:3300Bsystems).

GrossprofitonsalesincreasedbyEUR497.2toEUR1,298.1millionforthefirsthalfyearof2014fromEUR800.9 millionforthefirsthalfyearof2013.Grossmarginincreasedto42.7percentforthefirsthalfyearof2014from38.5 percentforthefirsthalfyearof2013.Inthefirsthalfyearof2013thegrossmarginwasnegativelyimpactedbythe Cymerrelatedpurchasepriceallocationeffects.Furthermoretheincreaseiscausedbyrelativelyhighernumberof systemssoldwithahighergrossmargin.

Westarted2014withasystemsbacklogexcludingEUVof56systems.Duringthefirsthalfyearof2014,webooked ordersfor59systemsexcludingEUVandrecognizedsalesfor69systemsexcludingEUV.Thisresultedinasystems backlogexcludingEUVof46asofJune29,2014.

AsofJune29,2014,oursystemsbacklogexcludingEUVwasvaluedatEUR1,763.1millionandincludes46systems withanASPofEUR38.3million.AsofDecember31,2013,thesystemsbacklogexcludingEUVwasvaluedatEUR 1,953.3millionandincluded56systemswithanASPofEUR34.9million.TheASPofoursystemsbacklogexcluding EUVasofJune29,2014increasedcomparedtoDecember31,2013asaresultofashiftinthemixofsystemstowards morehigh-endsystemtypes(mainlyNXT:1970Ci).

Other Income

OtherincomeconsistsofcontributionsforR&DprogramsundertheNREFundingAgreementsfromcertain ParticipatingCustomersoftheCCIPandamountedtoEUR40.5millionforthefirsthalfyearof2014(firsthalfyearof 2013:EUR30.5million).

Research and Development

R&Dinvestmentsforthefirsthalfyearof2014ofEUR543.0million(firsthalfyearof2013:EUR384.8million),comprise ofR&Dcosts(includingnetdevelopmentcostsnoteligibleforcapitalization),netofcredits,ofEUR401.5million(first halfyearof2013:EUR218.4million)andcapitalizationofdevelopmentexpendituresofEUR141.5million(firsthalf yearof2013:EUR166.4million)weresignificantlyhigherthanforthefirsthalfyearof2013.OverallR&Dinvestments increasedfollowingtheaccelerationofcertainR&Dprograms,mainlyEUVandnext-generationimmersion,asaresultof theCCIPandtheacquisitionofCymer.

Selling, General and Administrative Costs

Selling,generalandadministrativecostsincreasedbyEUR32.8milliontoEUR164.7millionforthefirsthalfyearof 2014fromEUR131.9millionforthefirsthalfyearof2013mainlyasaresultoftheacquisitionofCymer.

Cash Flows from Operating Activities

WegeneratednetcashfromoperatingactivitiesofEUR550.3millioninthefirsthalfyearof2014comparedtoEUR 596.2millioninthefirsthalfyearof2013.Lowernetcashprovidedbyoperatingactivitiesinthefirsthalfyearof2014 comparedtothefirsthalfyearof2013,relatestotheincreasedsaleslevelsfullyoff-setbydecreasedworkingcapital, mainlyduetoanincreaseininventoriesandadecreaseinaccountsreceivable.

Cash Flows from Investing Activities

WeusedEUR215.5millionofnetcashforinvestingactivitiesinthefirsthalfyearof2014andEUR485.0millioninthe firsthalfyearof2013.Netcashusedininvestingactivitiesinthefirsthalfyearof2014includedEUR295.7millionof

purchaseofproperty,plantandequipmentandintangibleassets,EUR369.7millionofpurchaseofavailable-for-sale securitiesandEUR450.0millionofmaturityofavailable-for-salesecurities.

Cash Flows from Financing Activities

NetcashusedinfinancingactivitieswasEUR556.4millioninthefirsthalfyearof2014comparedtoEUR284.9million inthefirsthalfyearof2013.Netcashusedinfinancingactivitiesinthefirsthalfyearof2014mainlyincludedEUR268.0 millionofdividendpayment(firsthalfyearof2013:EUR216.1million)andEUR299.9millionofsharebuybacks(first halfyearof2013:EUR84.7million).

Related Party Transactions

FordisclosureregardingrelatedpartytransactionsseeNote13totheConsolidatedCondensedInterimFinancial Statements.

Auditor's Involvement

ThisStatutoryInterimReportforthesix-monthperiodendedJune29,2014andtheConsolidatedCondensedInterim FinancialStatementsincludedhereinhavenotbeenauditedorreviewedbyanexternalauditor.

2014 Second Half Year Perspectives

Operational Outlook

InEUV,wehavemadesignificantprogressin2014andweareontracktowardsourtargetof500wafersperdayaround theendoftheyear.InourEUVsourcedevelopmentprogram,wedemonstratedimprovementstowardsthecustomer requirementforvolumeproductionin2016oftypically1,500wafersperday.Weareworkingcloselywithcustomersto determinethevolumeproductioninsertionpointsforthe10and7nanometernodes.

Withregardstoourmarkets,deliveriesofourDUVsystemsinthesecondhalfof2014willbedrivenbymemory customers,withtherampofthe20nm,16nmand14nmlogicnodessettocontinue.However,somecustomers continuetoevaluatethetimingoftheirdeliveriestosynchronizesupplyanddemand,leadingtoanadjustmenttowards the2014year-endshipmentforecast.

Financial Outlook

ThefollowingtablesetsforthoursystemsbacklogasofJune29,2014andDecember31,2013:

	Unaudited	Unaudited
(inmillionsEUR,unlessotherwiseindicated)	June 29, 2014	December 31, 2013
NewsystemsbacklogexcludingEUV(inunits)	35	46
UsedsystemsbacklogexcludingEUV(inunits)	11	10
TotalsystemsbacklogexcludingEUV(inunits)	46	56
ValueofnewsystemsbacklogexcludingEUV	1,695.4	1,906.2
ValueofusedsystemsbacklogexcludingEUV	67.7	47.1
ValueoftotalsystemsbacklogexcludingEUV	1,763.1	1,953.3
ASPofnewsystemsbacklogexcludingEUV	48.4	41.4
ASPofusedsystemsbacklogexcludingEUV	6.2	4.7
ASPoftotalsystemsbacklogexcludingEUV	38.3	34.9

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

ASMLexpectsfull-year2014netsalesofaroundEUR5.6billionaslogiccustomersre-evaluatethetimingofthe capacityrampsfortheirnextnodes.ProductionoftheNXE:3300Bsystemsisongoing;however,threeofthepreviously targetedeightdeliverieswillshiftinto2015assomecustomershaveoptedtoupgradetheirsystemfromNXE:3300Bto NXE:3350Bspecifications,addressingthenextlevelofvolumeproductionrequirements.

TheBoardofManagement, Veldhoven,July16,2014

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,

PeterT.F.M.Wennink,PresidentandChiefExecutiveOfficer MartinA.vandenBrink,PresidentandChiefTechnologyOfficer WolfgangU.Nickl,ExecutiveVicePresidentandChiefFinancialOfficer FritsJ.vanHout,ExecutiveVicePresidentandChiefProgramOfficer FrédéricJ.M.Schneider-Maunoury,ExecutiveVicePresidentandChiefOperationsOfficer

Veldhoven,July16,2014

Consolidated Condensed Interim Financial Statements

Consolidated Condensed Interim Financial Statements

• ConsolidatedCondensedStatementofProfitorLoss
• ConsolidatedCondensedStatementofComprehensiveIncome
• ConsolidatedCondensedStatementofFinancialPosition
• ConsolidatedCondensedStatementofChangesinEquity
• ConsolidatedCondensedStatementofCashFlows
• NotestotheConsolidatedCondensedInterimFinancialStatements

Consolidated Condensed Statement of Profit or Loss

		Unaudited	Unaudited
Notes	For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
	(inthousands,exceptpersharedata)	EUR	EUR
11	Netsystemsales	2,273,014	1,592,466
11	Netserviceandfieldoptionsales	767,058	486,332
	Total net sales	3,040,072	2,078,798
	Costofsystemsales	(1,315,787)	(962,209)
	Costofserviceandfieldoptionsales	(426,196)	(315,673)
	Total cost of sales	(1,741,983)	(1,277,882)
	Gross profit	1,298,089	800,916
	Otherincome	40,495	30,516
	Researchanddevelopmentcosts	(401,492)	(218,390)
	Selling,generalandadministrativecosts	(164,680)	(131,908)
	Operating income	772,412	481,134
	Financeincome	7,420	4,050
	Financecosts	(8,846)	(11,031)
	Income before income taxes	770,986	474,153
10	Provisionforincometaxes	(35,884)	(35,113)
	Net income	735,102	439,040
7	Basicnetincomeperordinaryshare	1.67	1.05
7	Dilutednetincomeperordinaryshare1	1.66	1.04
	Numberofordinarysharesusedincomputingpershareamounts(inthousands):
7	Basic	439,221	416,812
7	Diluted1	442,311	421,034

1 Thecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderourstockoptionplansandtheissuanceof sharesunderourshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuancewouldbeanti-dilutive.

Consolidated Condensed Statement of Comprehensive Income

Unaudited	Unaudited
2014	2013
EUR	EUR
735,102	439,040
31,147	(5,471)
674	3,992
7,436	(3,926)
39,257	(5,405)
774,359	433,635
774,359	433,635

1 AllitemsinothercomprehensiveincomeasatJune29,2014,comprisingofthehedgingreserveofEUR4.1million(June30,2013:EUR4.5million) andthecurrencytranslationreserveofEUR182.8million(June30,2013:EUR77.5million),willbereclassifiedsubsequentlytoprofitorlosswhen specificconditionsaremet.

Consolidated Condensed Statement of Financial Position

(Beforeappropriationofnetincome)

		Unaudited
Notes		June 29, 2014	December 31, 2013
	(inthousands)	EUR	EUR
	Assets
	Property,plantandequipment	1,275,118	1,217,840
	Goodwill	2,136,281	2,111,296
	Otherintangibleassets	1,448,988	1,375,572
	Deferredtaxassets	317,201	302,724
	Financereceivables	46,400	46,017
4	Derivativefinancialinstruments	85,386	30,777
	Otherassets	258,463	263,353
	Total non-current assets	5,567,837	5,347,579
	Inventories	2,615,526	2,393,022
	Currenttaxassets	93,959	32,333
4	Derivativefinancialinstruments	28,900	40,843
	Financereceivables	297,273	250,472
	Accountsreceivable	1,085,585	878,321
	Otherassets	276,939	250,217
4,5	Short-terminvestments	599,664	679,884
4,5	Cashandcashequivalents	2,110,993	2,330,694
	Total current assets	7,108,839	6,855,786
	Total assets	12,676,676	12,203,365
	Equity and liabilities
	Equity	7,781,123	7,544,795
	Long-termdebt	1,114,310	1,065,756
4	Derivativefinancialinstruments	3,074	2,608
	Deferredandothertaxliabilities	412,043	439,885
	Provisions	4,095	4,620
8	Accruedandotherliabilities	299,256	280,534
	Total non-current liabilities	1,832,778	1,793,403
	Provisions	2,113	2,227
4	Derivativefinancialinstruments	10,331	9,044
	Currentportionoflong-termdebt	4,309	4,385
	Currenttaxliabilities	88,928	15,803
8	Accruedandotherliabilities	2,283,900	2,207,838
	Accountspayable	673,194	625,870
	Total current liabilities	3,062,775	2,865,167
	Total equity and liabilities	12,676,676	12,203,365

Consolidated Condensed Statement of Changes in Equity

Issued and outstanding shares

	Number1	Amount	Share Premium	Treasury Shares at cost	Retained Earnings	Other Reserves2	Net Income	Total
(inthousands)		EUR	EUR	EUR	EUR	EUR	EUR	EUR
Balance at December 31, 20127	407,165	37,786	932,968	(465,848)	2,341,048	349,901	1,302,347	4,498,202
Appropriation of net income Components of statement of comprehensive income	-	-	-	-	1,302,347	-	(1,302,347)	-
Netincome	-	-	-	-	-	-	439,040	439,040
Foreigncurrencytranslation	-	-	-	-	-	(5,471)	-	(5,471)
Gain/(Loss)onfinancialinstruments,netof taxes	-	-	-	-	-	66	-	66
Total comprehensive income	-	-	-	-	-	(5,405)	439,040	433,635
CCIP:
Fairvaluedifferences3	-	-	10,854	-	-	-	-	10,854
Purchases of treasury shares4	(1,437)	-	-	(85,807)	-	-	-	(85,807)
Cancellation of treasury shares	-	(854)	-	349,261	(348,407)	-	-	-
Share-based payments	-	-	81,569 5	-	-	-	-	81,569
Issuance of shares6	37,535		3,281 2,334,677	14,847	(156)	-	-	2,352,649
Dividend paid	-	-	-	-	(216,085)	-	-	(216,085)
Development expenditures	-	-	-	-	(130,720)	130,720	-	-
Balance at June 30, 2013 (unaudited)7	443,263		40,213 3,360,068	(187,547)	2,948,027	475,216	439,040	7,075,017
Appropriation of net income	-	-	-	-	-	-	-	-
Components of statement of
comprehensive income
Netincome	-	-	-	-	-	-	754,804	754,804
Foreigncurrencytranslation	-	-	-	-	-	(116,529)	-	(116,529)
Gain/(Loss)onfinancialinstruments,netof	-	-	-	-	-	(7,712)	-	(7,712)
taxes
Total comprehensive income	-	-	-	-	-	(124,241)	754,804	630,563
CCIP:
Fairvaluedifferences3	-	-	10,102	-	-	-	-	10,102
Purchases of treasury shares4	(3,177)	-	-	(214,193)	-	-	-	(214,193)
Share-based payments	-	-	35,252	-	-	-	-	35,252
Issuance of shares6	766	1	(22,317)	35,958	(5,588)	-	-	8,054
Dividend paid	-	-	-	-	-	-	-	-
Development expenditures	-	-	-	-	(100,803)	100,803	-	-
Balance at December 31, 20137	440,852		40,214 3,383,105	(365,782)	2,841,636	451,778	1,193,844	7,544,795
Appropriation of net income Components of statement of	-	-	-	-	1,193,844	-	(1,193,844)	-
comprehensive income
Netincome	-	-	-	-	-	-	735,102	735,102
Foreigncurrencytranslation	-	-	-	-	-	31,147	-	31,147
Gain/(Loss)onfinancialinstruments,netof taxes	-	-	-	-	-	8,110	-	8,110
Total comprehensive income	-	-	-	-	-	39,257	735,102	774,359
CCIP:
Fairvaluedifferences3	-	-	9,288	-	-	-	-	9,288
Purchases of treasury shares4	(4,850)	-	-	(310,698)	-	-	-	(310,698)
Share-based payments	-	-	25,073	-	-	-	-	25,073
Issuance of shares6	1,196	-	(48,021)	57,098	(2,809)	-	-	6,268
Dividend paid	-	-	-	-	(267,962)	-	-	(267,962)
Development expenditures	-	-	-	-	(84,600)	84,600	-	-
Balance at June 29, 2014 (unaudited)7	437,198		40,214 3,369,445	(619,382)	3,680,109	575,635	735,102	7,781,123

1 AsofJune29,2014,thenumberofissuedshareswas446,823,836.Thisincludesthenumberofissuedandoutstandingsharesof437,197,559and thenumberoftreasurysharesof9,626,277.AsofDecember31,2013,thenumberofissuedshareswas446,822,452.Thisincludedthenumberof issuedandoutstandingsharesof440,852,334andthenumberoftreasurysharesof5,970,118.AsofJune30,2013,thenumberofissuedshareswas 446,808,250.Thisincludedthenumberofissuedandoutstandingsharesof443,263,373andthenumberoftreasurysharesof3,544,877.

2 Otherreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures. 3 EUR9.3million(secondhalfyearof2013:EUR10.1million;firsthalfyearof2013:EUR10.9million)isrecognizedtoincreaseequitytothefairvalue ofthesharesissuedtotheParticipatingCustomersintheCCIP.TheportionoftheNREfundingallocabletothesharesisreceivedovertheNRE fundingperiod(2013-2017).

4 Duringthesix-monthperiodendedJune29,2014,ASMLrepurchasedsharesforanamountofEUR310.7million(December31,2013:EUR300.0 million;June30,2013:EUR85.8million).AsofJune29,2014,EUR10.8millionofthetotalrepurchasedamountremainedunpaidandisrecorded inaccruedandothercurrentliabilities(December31,2013:nil;June30,2013:EUR1.1million).

5 Share-basedpaymentsincludeanamountofEUR66.1millioninrelationtothefairvalueofunvestedequityawardsexchangedaspartofthe acquisitionofCymer.

6 Issuanceofsharesincludes36,450,374ordinarysharesissuedinrelationtotheacquisitionofCymerforatotalfairvalueofEUR2,345.8million.The differenceofEUR1.8millionwiththefairvalueofsharesisexplainedby28,735sharesstilltobeissuedtoformerCymershareholdersasperJune 30,2013(June29,2014:remainingdifferenceofEUR0.8millionfor13,149sharestobeissued;December31,2013:remainingdifferenceofEUR1.0 millionfor14,533sharestobeissued).

7 Beforeappropriationofnetincome.

Consolidated Condensed Statement of Cash Flows

		Unaudited	Unaudited
	For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
Notes	(inthousands)	EUR	EUR
	Cash Flows from Operating Activities
	Netincome	735,102	439,040
	Adjustmentstoreconcilenetincometonetcashflowsfromoperatingactivities:
	Depreciationandamortization	195,435	131,754
	Impairment	6,433	2,668
	Lossondisposalofproperty,plantandequipment¹	1,171	561
	Share-basedpayments	30,488	15,048
	Allowancefordoubtfulreceivables	153	759
	Allowanceforobsoleteinventory	86,720	64,416
	Deferredincometaxes	(42,480)	39,047
	Changesinassetsandliabilities:
	Accountsreceivable	(208,563)	63,619
	Financereceivables	(46,563)	34,357
	Inventories¹	(326,291)	(282,583)
	Otherassets	(21,473)	(35,045)
8	Accruedandotherliabilities	79,972	(120,655)
	Accountspayable	55,491	223,049
10	Currentincometaxes	82,676	73,368
	Cash generated from operations	628,271	649,403
	Interestreceived	8,604	30,820
	Interestpaid	(15,081)	(39,927)
10	Incometaxespaid	(71,427)	(44,092)
	Net cash provided by operating activities	550,367	596,204
	Cash Flows from Investing Activities
	Purchaseofproperty,plantandequipment¹	(146,190)	(77,841)
	Purchaseofintangibleassets	(149,556)	(175,191)
4	Purchaseofavailable-for-salesecurities	(369,734)	(474,962)
4	Maturityofavailable-for-salesecurities	449,954	686,725
	Acquisitionofsubsidiaries(netofcashacquired)	-	(443,712) 2
	Net cash used in investing activities	(215,526)	(484,981)
	Cash Flows from Financing Activities
12	Dividendpaid	(267,962)	(216,085)
12	Purchaseofshares3	(299,854)	(84,752)
	Netproceedsfromissuanceofshares	13,623	17,689
	Repaymentofdebt	(2,248)	(1,764)
	Net cash used in financing activities	(556,441)	(284,912)
	Netcashflows	(221,600)	(173,689)
	Effectofchangesinexchangeratesoncash	1,899	(1,586)
	Net increase (decrease) in cash and cash equivalents	(219,701)	(175,275)
	Cashandcashequivalentsatbeginningoftheyear	2,330,694	1,767,596
	Cash and cash equivalents at June 29, 2014 and June 30, 2013	2,110,993	1,592,321

1 AnamountofEUR62.7million(June30,2013:EUR25.5million)oftheadditionsinproperty,plantandequipmentrelatestonon-cashtransfersfrom inventoryandanamountofEUR23.9million(June30,2013:EUR33.8million)ofthedisposalsofproperty,plantandequipmentrelatestonon-cash transferstoinventory.Sincethetransfersbetweeninventoryandproperty,plantandequipmentarenon-cashevents,thesearenotreflectedinthis ConsolidatedCondensedStatementofCashFlows.

2 Inthefirsthalfyearof2013,inadditiontothecashpaidinrelationtotheacquisitionofCymer,weissued36,450,374millionsharesforanamountof EUR2,345.8million(non-cashevent)aspartoftheconsiderationtransferred.

3 Duringthesix-monthperiodendedJune29,2014,ASMLrepurchasedsharesforanamountofEUR310.7million(June30,2013:EUR85.8million). AsofJune29,2014,EUR10.8millionofthetotalrepurchasedamountremainedunpaidandisrecordedinaccruedandothercurrentliabilities(June 30,2013:EUR1.1million).

Notes to the Consolidated Condensed Interim Financial Statements

1. General Information

OursharesarelistedfortradingintheformofregisteredsharesonNASDAQandonNYSEEuronextAmsterdam.The principaltradingmarketofourordinarysharesisNYSEEuronextAmsterdam.

TheConsolidatedCondensedInterimFinancialStatementsincludethefinancialstatementsofASMLHoldingN.V.and itssubsidiariesandthespecialpurposeentitiesoverwhichASMLHoldingN.V.hascontrol(togetherreferredtoas "ASML").Allintercompanyprofits,balancesandtransactionshavebeeneliminatedintheconsolidation.

TheConsolidatedCondensedInterimFinancialStatementswereauthorizedforissuancebytheBoardofManagement onJuly14,2014.

TheConsolidatedCondensedInterimFinancialStatementshavenotbeenauditedorreviewedbyanexternalauditor.

2. Basis of Preparation

TheConsolidatedCondensedInterimFinancialStatementsforthesix-monthperiodendedJune29,2014havebeen preparedinaccordancewithIAS34,"InterimFinancialReporting".TheConsolidatedCondensedInterimFinancial StatementsdonotincludealltheinformationanddisclosuresasrequiredintheStatutoryAnnualReportandshouldbe readinconjunctionwiththeStatutoryAnnualReport2013,whichhasbeenpreparedinaccordancewithIFRS-EU.

TheConsolidatedCondensedInterimFinancialStatementsarestatedinthousandsofEURunlessotherwiseindicated.

OnMay30,2013weacquired100percentoftheissuedsharecapitalofCymer.Comparativefinancialinformation presentedintheConsolidatedCondensedInterimFinancialStatementsthereforeincludesCymerforonemonth, whereastheConsolidatedCondensedInterimFinancialStatementsforthesix-monthperiodendedJune29,2014 includesCymerforsixmonths.

AsaresultoftheCymeracquisition,wehaveadjustedthefiguresforthesix-monthperiodendedJune30,2013forthe changesmadetotheprovisionalpurchasepriceallocation,thesettlementofthepre-existingrelationshipsandthecost oftheliabilitytoupgradethefirst113300EUVsources.

3. Summary of Significant Accounting Policies

TheaccountingpoliciesadoptedinthepreparationoftheConsolidatedCondensedInterimFinancialStatementsare consistentwiththoseappliedinthepreparationoftheStatutoryFinancialStatements2013,exceptforincometax expensewhichisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateforthefullfinancial year.ImplementationofnewandrevisedIFRS-EUoverthesix-monthperiodendedJune29,2014didnothavea materialimpactonourConsolidatedCondensedInterimFinancialStatements.

On June 29, 2014 the following Standards and Interpretations have been issued however are not yet effective and/or have not yet been adopted by the EU and us

IFRS15"RevenuefromContractswithCustomers"(effectiveforannualperiodsbeginningonorafterJanuary1,2017), wasissuedinMay2014.TheStandardissubjecttoendorsementbytheEU.IFRS15isajointprojectoftheIASBand theFASB,toclarifytheprinciplesforrecognisingrevenueandtodevelopacommonrevenuestandardforIFRSandUS GAAPthatwould:

• Removeinconsistenciesandweaknessesinpreviousrevenuerequirements;
• Provideamorerobustframeworkforaddressingrevenueissues;
• Improvecomparabilityofrevenuerecognitionpracticesacrossentities,industries,jurisdictionsandcapitalmarkets;
• Providemoreusefulinformationtousersoffinancialstatementsthroughimproveddisclosurerequirements;and
• Simplifythepreparationoffinancialstatementsbyreducingthenumberofrequirementstowhichanentitymustrefer.

WearecurrentlyintheprocessofdeterminingtheimpactofimplementingthisStandardonourConsolidated (CondensedInterim)FinancialStatements.

IFRS9"FinancialInstruments"(effectiveforannualperiodsbeginningonorafterJanuary1,2017),wasissuedin November2009andsubsequentlyamendedinDecember16,2011andNovember19,2013.TheStandardissubject toendorsementbytheEU.IFRS9addressestheclassificationandmeasurementoffinancialassetsandfinancial liabilities.IFRS9enhancestheabilityofinvestorsandotherusersoffinancialinformationtounderstandtheaccounting offinancialassetsandreducescomplexity.Furthermore,IFRS9addressestheaccountingforchangesinthefairvalue offinancialliabilities(designatedatfairvaluethroughprofitorloss)attributabletochangesinthecreditriskofthat liability.WearecurrentlyintheprocessofdeterminingtheimpactofimplementingthisStandardonourConsolidated (CondensedInterim)FinancialStatements.

WebelievethattheeffectofallotherIFRSsnotyetadoptedisnotexpectedtobematerial.

4. Fair Value Measurements

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransaction betweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementhierarchyprioritizestheinputsto valuationtechniquesusedtomeasurefairvalueasfollows:

•Level1:Valuationsbasedoninputssuchasquotedpricesforidenticalassetsorliabilitiesinactivemarketsthatthe entityhastheabilitytoaccess.

•Level2:Valuationsbasedoninputsotherthanlevel1inputssuchasquotedpricesforsimilarassetsorliabilities, quotedpricesinmarketsthatarenotactive,orotherinputsthatareobservableorcanbecorroboratedbyobservable dataforsubstantiallythefulltermoftheassetsorliabilities.

•Level3:Valuationsbasedoninputsthataresupportedbylittleornomarketactivityandthataresignificanttothefair valueoftheassetsorliabilities.

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

Financial assets and financial liabilities measured at fair value on a recurring basis

Investmentsinmoneymarketfunds(aspartofourcashandcashequivalents)havefairvaluemeasurementswhichare allbasedonquotedpricesforidenticalassetsorliabilities.

Ouravailable-for-salefinancialinstrumentsconsistofDutchTreasuryCertificatesanddepositswiththeDutch government.DutchTreasuryCertificatesaretradedinanactivemarketandthefairvalueisdeterminedbasedonquoted marketpricesforidenticalassetsorliabilities.Thefairvalueofdepositsisdeterminedwithreferencetoquotedmarket pricesforsimilarassetsordiscountedcashflowanalysis.

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

Thevaluationtechniqueusedtodeterminethefairvalueofforwardforeignexchangecontracts(usedforhedging purposes)approximatestheNPVtechniquewhichistheestimatedamountthatabankwouldreceiveorpaytoterminate theforwardforeignexchangecontractsatthereportingdate,takingintoaccountcurrentinterestratesandcurrent exchangerates.

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

OurEurobondsserveashedgeditemsinfairvaluehedgerelationshipsinwhichwehedgethevariabilityofchangesin thefairvalueofourEurobondsduetochangesinmarketinterestrateswithinterestrateswaps.Thefairvaluechanges oftheseinterestrateswapsarerecordedontheConsolidatedCondensedStatementofFinancialPositionunder derivativefinancialinstruments(withinothercurrentassetsandothernon-currentassets)andthecarryingamountsof theEurobondsareadjustedfortheeffectiveportionofthesefairvaluechangesonly.

ThefairvalueofourEurobonds,includingcreditriskconsiderations,basedonquotedmarketpricesasperBloomberg FinanceLP,asperJune29,2014amountstoEUR1,087.4million(December31,2013:EUR1,028.2million).

Thefollowingtablepresentsourfinancialassetsandfinancialliabilitiesthataremeasuredatfairvalueonarecurring basis:

Level 1	Level 2	Level 3	Total
EUR	EUR	EUR	EUR
-	114,286	-	114,286
465,940	-	-	465,940
449,664	150,000	-	599,664
915,604	264,286	-	1,179,890
-	1,075,538	-	1,075,538
-	13,405	-	13,405
-	1,088,943	-	1,088,943
		Level 3	Total
EUR	EUR	EUR	EUR
-	71,620	-	71,620
535,000	-	-	535,000
304,884 839,884	375,000 446,620	- -	679,884 1,286,504
-	1,017,501	-	1,017,501
-	11,652	-	11,652
	Level 1	Level 2

1 Derivativefinancialinstrumentsconsistofforwardforeignexchangecontractsandinterestrateswaps.

2 Moneymarketfundsarepartofourcashandcashequivalents.

3 Short-terminvestmentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.

4 Long-termdebtrelatestoourEurobonds(fairvalueasatJune29,2014:EUR1,075.5million(December31,2013:EUR1,017.5million))andexcludes accruedinterest.

Therewerenotransfersbetweenlevelsduringthefirsthalfyearof2014and2013.

Financial assets and financial liabilities that are not measured at fair value

Thecarryingamountofcashandcashequivalents,accountspayable,andothercurrentfinancialassetsandliabilities approximatetheirfairvaluebecauseoftheshort-termnatureoftheseinstruments.Accountsreceivableandfinance receivablesalsoapproximatetheirfairvaluebecauseofthefactthatanyrecoverabilitylossisreflectedinanimpairment loss.

Assets and liabilities measured at fair value on a nonrecurring basis

In2014,werecognizedimpairmentchargesofEUR6.4milliononourproperty,plantandequipment,mainlyrelatingto buildingsandconstructionswhichceasedtobeused.ValuationoftheseassetsisclassifiedasLevel3inthefairvalue hierarchysincetheirfairvaluesweredeterminedbasedonunobservableinputs.Theimpairmentchargeisdetermined basedonthedifferencebetweentheassets'estimatedfairvalueandtheircarryingamount.

Wedidnotrecognizeanyimpairmentchargesforgoodwillandotherintangibleassetsduringthefirsthalfyearof2014.

5. Liquidity

Ourprincipalsourcesofliquidityconsistofcashflowsfromoperations,cashandcashequivalentsasofJune29,2014 ofEUR2,111.0million,(December31,2013:EUR2,330.7million),short-terminvestmentsasofJune29,2014ofEUR 599.7million(December31,2013:EUR679.9)andavailablecreditfacilitiesasofJune29,2014ofEUR700.0million (December31,2013:EUR700.0million).Inaddition,wemayfromtimetotimeraiseadditionalcapitalindebtandequity markets.Ourgoalistoremainaninvestmentgraderatedcompanyandmaintainacapitalstructurethatsupportsthis.

6. Critical Accounting Judgments and Key sources of Estimation Uncertainty

Intheprocessofapplyingouraccountingpolicies,managementhasmadesomejudgmentsthathaveasignificant effectontheamountsrecognizedintheConsolidatedCondensedInterimFinancialStatements.Thecriticalaccounting judgmentsandkeysourcesofestimationuncertaintyareconsistentwiththosedescribedintheStatutoryAnnualReport 2013.

7. Earnings per Share

TheEPSdatahavebeencalculatedasfollows:

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
(inthousands,exceptpersharedata)	EUR	EUR
Net income	735,102	439,040
Weighted average number of shares outstanding (after deduction of treasury stock)	439,221	416,812
Basic net income per ordinary share	1.67	1.05
Weighted average number of shares: Plussharesapplicableto:	439,221	416,812
Stockoptions/Restrictedshares1	3,090	4,222
Dilutive potential common shares	3,090	4,222
Adjusted weighted average number of shares	442,311	421,034
Diluted net income per ordinary share1	1.66	1.04

1 ThecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderASMLstockoptionplansandtheissuanceof sharesunderASMLshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuancewouldbeanti-dilutive.

8. Accrued and Other Liabilities

Accruedandotherliabilitiesconsistofthefollowing:

	Unaudited
	June 29, 2014	December 31, 2013
(inthousands)	EUR	EUR
Deferredrevenue	1,291,412	939,358
Coststobepaid	510,510	440,010
Downpaymentsfromcustomers	514,644	821,959
Personnelrelateditems	235,690	247,246
Standardwarrantyreserve	30,145	27,475
Other	755	12,324
Total accrued and other liabilities	2,583,156	2,488,372
Less:non-currentportionofaccruedandotherliabilities	299,256	280,534
Current portion of accrued and other liabilities	2,283,900	2,207,838

Theincreaseinaccruedandotherliabilitiesmainlyrelatestotheincreaseindeferredrevenueandcoststobepaid, partlyoffsetbyadecreaseindownpaymentsfromcustomers.

Wereceivedownpaymentsfromcustomerspriortoshipmentofsystemsincludedinourcurrentproductportfolioor systemscurrentlyunderdevelopment.Thedecreaseindownpaymentsfromcustomersiscausedbytheshipmentsof suchsystems(mainlyNXE:3300B).

DeferredrevenueasofJune29,2014mainlyconsistsofawardcreditsregardingfreeordiscountedproductsorservices aspartofvolumepurchaseagreementsamountingtoEUR571.0million(2013:EUR660.1million),whichincludes NXE:3300BsystemsshippedforanamountofEUR276.4million(2013:EUR84.2million).Inaddition,deferredrevenue includesprepaidextendedandenhanced(optic)warrantycontractsamountingtoEUR273.0million(2013:EUR261.2 million).

CoststobepaidincludeanamountofEUR175.2million(2013:EUR171.2million)relatingtotheexpectedlossesto upgradethefirst11EUVsourcesinthefield,whichwasassumedbyASMLasaresultoftheacquisitionofCymer.In addition,coststobepaidincludeaccruedcostforunbilledservicesprovidedbysuppliersincludingcontractedlabor, outsourcedservicesandconsultancy.

9. Commitments, Contingencies and Guarantees

Thenature,scaleandscopeofthecommitments,contingenciesandguaranteesareinlinewiththosedisclosedinthe StatutoryAnnualReport2013.

10. Income Taxes

Incometaxexpenseisrecognizedbasedonmanagement'sbestestimateoftheannualincometaxrateforthefull financialyear.Theestimatedannualtaxrateforthesix-monthperiodendedJune29,2014is4.7percentcompared to7.4percentforthesix-monthperiodendedJune30,2013.Thedecreaseintheestimatedannualtaxrateismainly explainedbychangesinthemixofincomebeforeincometaxesbetweentheNetherlandsandforeignjurisdictions.

11. Segment Disclosure

ASMLhasonereportablesegment,forthedevelopment,production,marketing,saleandservicingofadvanced semiconductorequipmentsystemsexclusivelyconsistingoflithographyrelatedsystems.Itsoperatingresultsare regularlyreviewedbytheCODMinordertomakedecisionsaboutresourcestobeallocatedtothesegmentASMLand assessitsperformance.

Managementreportingincludesthefollowinginformation:

Netsystemsalesfornewandusedsystemswereasfollows:

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
(inthousands)	EUR	EUR
Newsystems	2,223,461	1,543,524
Usedsystems	49,553	48,942
Net system sales	2,273,014	1,592,466

Netsystemsalespertechnologywereasfollows:

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	Net system sales	Net system sales
(inthousands)	in Units	in EUR
For the six-month period ended June 29, 2014
EUV	2	120,676
ArFi	43	1,919,284
ArFdry	2	15,010
KrF	18	193,948
I-line	6	24,096
Total	71	2,273,014
For the six-month period ended June 30, 2013
ArFi	30	1,211,274
KrF	28	340,215
I-line	9	40,977
Total	67	1,592,466

TheincreaseinnetsystemsalesofEUR680.6milliontoEUR2,273.0millionforthefirsthalfyearof2014(firsthalfyear of2013:EUR1,592.4million)isprimarycausedbyarelativelyhighernumberofsystemssoldwithahigherASP.

SegmentperformanceisevaluatedbyourCODMbasedontheUSGAAPConsolidatedStatementsofOperations whichismeasureddifferentlyfromtheConsolidatedStatementofProfitorLossreportedinourConsolidatedFinancial StatementsbasedonIFRS-EU.

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
(inthousands)	EUR	EUR
Netsystemsales	2,273,014	1,592,466
Netserviceandfieldoptionsales	767,058	486,332
Total net sales	3,040,072	2,078,798
Costofsales	(1,678,714)	(1,238,058)
Gross profit	1,361,358	840,740
Otherincome	40,495	30,516
Researchanddevelopmentcosts	(546,024)	(384,757)
Selling,generalandadministrativecosts	(164,744)	(130,601)
Income from operations	691,085	355,898
Interestandother,net	(3,985)	(9,358)
Income before income taxes	687,100	346,540
Provisionforincometaxes	(39,302)	(5,269)
Net income for management reporting purposes	647,798	341,271
DifferencesUSGAAPandIFRS-EU	87,304	97,769
Net income based on IFRS-EU	735,102	439,040

Inaddition,totalassetsisreviewedbyourCODMbasedonUSGAAPfortheevaluationofsegmentperformance.The tablebelowpresentsthemeasurementsandthereconciliationtototalassetsintheConsolidatedStatementofFinancial Position:

	Unaudited
	June 29, 2014	December 31, 2013
(inthousands)	EUR	EUR
Totalassetsformanagementreportingpurposes	11,888,533	11,513,730
DifferencesUSGAAPandIFRS-EU	788,143	689,635
Total assets based on IFRS-EU	12,676,676	12,203,365

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

Totalnetsalesbygeographicregionwereasfollows:

	Unaudited	Unaudited
For the six-month period ended June 29, 2014 and June 30, 2013	2014	2013
(inthousands)	EUR	EUR
Japan	194,193	109,217
Korea	897,054	477,973
Singapore	42,705	77,870
Taiwan	491,010	898,247
RestofAsia	348,395	167,807
Netherlands	217	1,535
RestofEurope	58,225	30,681
UnitedStates	1,008,273	315,468
Total	3,040,072	2,078,798

Non-currentassetsbygeographicregionwereasfollows:

	Unaudited
	June 29, 2014	December 31, 2013
(inthousands)	EUR	EUR
Japan	2,976	2,679
Korea	14,317	13,347
Singapore	697	837
Taiwan	48,651	48,076
RestofAsia	3,676	3,427
Netherlands	1,975,478	1,783,999
RestofEurope	7,331	1,830
UnitedStates	3,034,176	3,084,872
Total	5,087,302	4,939,067

Forthesix-monthperiodendedJune29,2014,netsalestothelargestcustomeraccountedforEUR884.8millionor 29.1percentofnetsales(June30,2013:EUR752.2millionor36.2percent).Ourthreelargestcustomers(basedonnet sales)accountedfor48.0percentofaccountsreceivableandfinancereceivablesatJune29,2014(December31,2013 73.3percent).

Substantiallyallofoursaleswereexportsalesduringthesix-monthperiodsendedJune29,2014andJune30,2013.

12. Dividends and Share Buybacks

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

IntheAGMofApril23,2014,adividendofEUR0.61perordinaryshareofEUR0.09nominalvaluewasadoptedfor 2013.Asaresult,atotaldividendamountofEUR268.0millionwaspaidtoourshareholdersonMay13,2014.

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

OnApril17,2013,weannouncedourintentiontopurchaseuptoanamountofEUR1.0billionofourownshareswithin the2013-2014timeframe,startingApril18,2013.UptoJune29,2014wepurchased9.5millionsharesforatotal amountofEUR610.7million.Therepurchasedshareswillbecancelled.

13. Related Party Transactions

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

ThetotalnetsalestoIntel(anditsaffiliates)forthefirsthalfyearof2014amountedtoEUR544.8comparedwithEUR 175.9millionforthefirsthalfyearof2013.OutstandingliabilityasofJune29,2014amountedtoEUR123.8million (December31,2013:EUR182.3million).

Therehavebeennotransactionsduringthefirsthalfyearof2014,andtherearecurrentlynotransactions,between ASMLandanyothersignificantshareholderandanydirectororofficeroranyrelativeorspousethereofotherthan ordinarycoursecompensationarrangement.Duringthefirsthalfyearof2014,therehasbeenno,andatpresentthereis no,outstandingindebtednesstoASMLowedorowingbyanydirectororofficerofASMLoranyassociatethereof.

14. Subsequent Events

WehaveevaluatedsubsequenteventsuntilJuly16,2014whichistheissuancedateofthisStatutoryInterimReportfor thesix-monthperiodendedJune29,2014.Therearenosubsequenteventstoreport.

Veldhoven,theNetherlands July16,2014

PreparedbytheBoardofManagement: PeterT.F.M.Wennink WolfgangU.Nickl MartinA.vandenBrink FritsJ.vanHout FrédéricJ.M.Schneider-Maunoury

Other Information

Information and Investor Relations

Financial Calendar

October 15, 2014

AnnouncementofThirdQuarterResultsfor2014

January 21, 2015

AnnouncementofFourthQuarterResultsfor2014andAnnualResultsfor2014

April 22, 2015

GeneralMeetingofShareholders

Fiscal Year

ASML'sfiscalyearendsonDecember31,2014

Listing

OursharesarelistedfortradingintheformofregisteredsharesonNASDAQandonNYSEEuronextAmsterdam.The principaltradingmarketofourordinarysharesisNYSEEuronextAmsterdam.

Investor Relations

ASMLInvestorRelationswillanswerquestionsrelatedtoourAnnualReportonForm20-FfiledwiththeUSSecurities andExchangeCommissionandourStatutoryAnnualandInterimReportfiledwiththeAFM. AnnualReports, InterimReports,quarterlyreleasesandotherinformationareavailableonandcanbedownloadedfromourwebsite (www.asml.com).

ASML Worldwide Contact Information

Corporate Headquarters

DeRun6501 5504DRVeldhoven TheNetherlands

Mailing Address

P.O.Box324 5500AHVeldhoven TheNetherlands

United States Main Office

2650WGeronimoPlace Chandler,AZ85224 U.S.A.

Asia Main Office

Suite1702-3,17F 100QueensRoadCentral HongKong

Corporate Communications

phone:+31402687870 email:corpcom@asml.com

Investor Relations

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

Formoreinformationpleasevisitour websitewww.asml.com

Definitions

Name	Description
AFM	Autoriteit Financiële Markten
AGM	Annual General Meeting of Shareholders
ASML	ASML Holding N.V., its subsidiaries and the special purpose entities over which ASML Holding N.V. has control
ASP	Average Selling Price
CCIP	Customer Co-Investment Program
CODM	Chief Operating Decision Maker
Cymer	Before the acquisition known as Cymer, Inc. and its subsidiaries
EPS	Earnings per Share
EU	European Union
EUR / Euro	Euros
Eurobonds	Our EUR 600 million 5.75 percent senior notes due 2017 and our EUR 750 million 3.375 percent senior notes due 2023
EUV	Extreme Ultraviolet
FASB	Financial Accounting Standards Board
FTEs	Full-time Equivalents
IAS	International Accounting Standard
IASB	International Accounting Standards Board
IC	Intercircuit
IFRS	International Financial Reporting Standards
IFRS-EU	International Financial Reporting Standards as adopted by the European Union
NASDAQ	NASDAQ Stock Market LLC
NPV	Net Present Value
NRE	Non Recurring Engineering
NRE Funding Agreements	The Non Recurring Engineering Funding Agreements signed as part of the Customer Co- Investment Program
Participating customers Intel Corporation, Taiwan Semiconductor Manufacturing Company Ltd. and Samsung Electronics Corporation
R&D	Research and Development
US GAAP	Generally Accepted Accounting Principles in the United States of America