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ASML Holding N.V. — Interim / Quarterly Report 2021
Oct 20, 2021
3813_iss_2021-10-20_cc267fcb-3718-4844-b297-2d00aabbece7.pdf
Interim / Quarterly Report
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ASML - Summary US GAAP Consolidated Statements of Operations
| Three months ended, | Nine months ended, | |||
|---|---|---|---|---|
| Sep 27, | Oct 3, | Sep 27, | Oct 3, | |
| (unaudited, in millions €, except per share data) | 2020 | 2021 | 2020 | 2021 |
| Net system sales | 3,095.6 | 4,111.1 | 7,118.2 | 10,189.6 |
| Net service and field option sales | 862.4 | 1,130.2 | 2,606.1 | 3,435.8 |
| Total net sales | 3,958.0 | 5,241.3 | 9,724.3 | 13,625.4 |
| Total cost of sales | (2,076.6) | (2,529.9) | (5,138.3) | (6,517.0) |
| Gross profit | 1,881.4 | 2,711.4 | 4,586.0 | 7,108.4 |
| Research and development costs | (534.0) | (609.2) | (1,644.9) | (1,866.4) |
| Selling, general and administrative costs | (131.5) | (182.9) | (393.4) | (523.1) |
| Income from operations | 1,215.9 | 1,919.3 | 2,547.7 | 4,718.9 |
| Interest and other, net | (8.4) | (10.5) | (26.9) | (32.4) |
| Income before income taxes | 1,207.5 | 1,908.8 | 2,520.8 | 4,686.5 |
| Income tax expense | (166.5) | (270.9) | (381.3) | (705.4) |
| Income after income taxes | 1,041.0 | 1,637.9 | 2,139.5 | 3,981.1 |
| Profit related to equity method investments | 20.5 | 102.3 | 63.6 | 128.7 |
| Net income | 1,061.5 | 1,740.2 | 2,203.1 | 4,109.8 |
| Basic net income per ordinary share | 2.54 | 4.27 | 5.26 | 9.99 |
| Diluted net income per ordinary share | 2.53 | 4.26 | 5.25 | 9.97 |
| Weighted average number of ordinary shares used in computing per share amounts (in millions): | ||||
| Basic | 418.4 | 407.9 | 418.9 | 411.6 |
| Diluted | 419.2 | 408.6 | 419.6 | 412.2 |
ASML - Ratios and Other Data
| Three months ended, | Nine months ended, | |||
|---|---|---|---|---|
| Sep 27, | Oct 3, | Sep 27, | Oct 3, | |
| (unaudited, in millions €, except otherwise indicated) | 2020 | 2021 | 2020 | 2021 |
| Gross profit as a percentage of net sales | 47.5 % | 51.7 % | 47.2 % | 52.2 % |
| Income from operations as a percentage of net sales | 30.7 % | 36.6 % | 26.2 % | 34.6 % |
| Net income as a percentage of net sales | 26.8 % | 33.2 % | 22.7 % | 30.2 % |
| Income taxes as a percentage of income before income taxes | 13.8 % | 14.2 % | 15.1 % | 15.1 % |
| Shareholders' equity as a percentage of total assets | 54.0 % | 42.1 % | 54.0 % | 42.1 % |
| Sales of lithography systems (in units) 1 | 60 | 79 | 178 | 227 |
| Value of booked systems (EUR millions) 2 | 2,868 | 6,179 | 7,054 | 19,190 |
| Net bookings lithography systems (in units) 1, 2 | 73 | 178 | 180 | 465 |
| Number of payroll employees in FTEs | 24,749 | 29,025 | 24,749 | 29,025 |
| Number of temporary employees in FTEs | 1,451 | 1,659 | 1,451 | 1,659 |
-
- Lithography systems do not include metrology and inspection systems.
-
- Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV excluding the EUV 0.55 NA (High-NA) systems).
ASML - Summary US GAAP Consolidated Balance Sheets
| Dec 31, | Oct 3, | |
|---|---|---|
| (unaudited, in millions €) | 2020 | 2021 |
| ASSETS | ||
| Cash and cash equivalents | 6,049.4 | 4,318.7 |
| Short-term investments | 1,302.2 | 137.0 |
| Accounts receivable, net | 1,310.3 | 3,383.3 |
| Finance receivables, net | 1,710.5 | 1,185.9 |
| Current tax assets | 67.3 | 289.5 |
| Contract assets | 119.2 | 272.0 |
| Inventories, net | 4,569.4 | 4,944.2 |
| Other assets | 801.7 | 995.0 |
| Held for sale assets | — | 152.7 |
| Total current assets | 15,930.0 | 15,678.3 |
| Finance receivables, net | 400.5 | 139.0 |
| Deferred tax assets | 671.5 | 986.0 |
| Other assets | 951.4 | 1,120.9 |
| Equity method investments | 820.7 | 963.2 |
| Goodwill | 4,629.1 | 4,555.6 |
| Other intangible assets, net | 1,049.0 | 963.8 |
| Property, plant and equipment, net | 2,470.3 | 2,730.3 |
| Right-of-use assets - Operating | 180.1 | 155.0 |
| Right-of-use assets - Finance | 164.8 | 5.9 |
| Total non-current assets | 11,337.4 | 11,619.7 |
| Total assets | 27,267.4 | 27,298.0 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities | 6,603.5 | 9,114.7 |
| Held for sale liabilities | — | 47.9 |
| Total current liabilities | 6,603.5 | 9,162.6 |
| Long-term debt | 4,662.8 | 4,105.8 |
| Deferred and other tax liabilities | 238.3 | 282.6 |
| Contract liabilities | 1,639.9 | 2,001.7 |
| Accrued and other liabilities | 257.5 | 242.9 |
| Total non-current liabilities | 6,798.5 | 6,633.0 |
| Total liabilities | 13,402.0 | 15,795.6 |
| Total shareholders' equity | 13,865.4 | 11,502.4 |
| Total liabilities and shareholders' equity | 27,267.4 | 27,298.0 |
ASML - Summary US GAAP Consolidated Statements of Cash Flows
| Three months ended, | Nine months ended, | |||
|---|---|---|---|---|
| Sep 27, | Oct 3, | Sep 27, | Oct 3, | |
| (unaudited, in millions €) | 2020 | 2021 | 2020 | 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net income | 1,061.5 | 1,740.2 | 2,203.1 | 4,109.8 |
| Adjustments to reconcile net income to net cash flows from operating activities: |
||||
| Depreciation and amortization | 122.0 | 116.2 | 365.4 | 346.8 |
| Impairment and loss (gain) on disposal | 0.8 | (39.8) | 4.7 | (33.4) |
| Share-based compensation expense | 22.5 | 34.0 | 47.7 | 84.0 |
| Inventory reserves | 36.3 | 52.9 | 114.8 | 131.3 |
| Deferred tax expense (benefit) | (110.6) | (270.1) | (150.6) | (313.4) |
| Equity method investments | (26.1) | (97.3) | (84.8) | (141.2) |
| Changes in assets and liabilities | (915.3) | 265.5 | (2,543.1) | 244.9 |
| Net cash provided by (used in) operating activities | 191.1 | 1,801.6 | (42.8) | 4,428.8 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchase of property, plant and equipment | (212.5) | (197.0) | (669.1) | (627.5) |
| Purchase of intangible assets | (9.1) | (8.0) | (26.6) | (22.2) |
| Purchase of short-term investments | (343.7) | (50.0) | (654.7) | (658.5) |
| Maturity of short-term investments | 408.7 | 99.7 | 964.3 | 1,823.7 |
| Loans issued and other investments | (10.0) | (124.3) | (10.0) | (124.3) |
| Proceeds from sale of subsidiaries | — | — | — | 12.9 |
| Net cash provided by (used in) investing activities | (166.6) | (279.6) | (396.1) | 404.1 |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Dividend paid | — | — | (564.8) | (639.1) |
| Purchase of treasury shares | — | (2,401.6) | (507.5) | (5,953.1) |
| Net proceeds from issuance of shares | 10.4 | 12.3 | 30.0 | 36.9 |
| Net proceeds from issuance of notes, net of issuance costs | — | — | 1,486.3 | — |
| Repayment of debt and finance lease obligations | (0.9) | (2.6) | (2.6) | (9.4) |
| Net cash provided by (used in) financing activities | 9.5 | (2,391.9) | 441.4 | (6,564.7) |
| Net cash flows | 34.0 | (869.9) | 2.5 | (1,731.8) |
| Effect of changes in exchange rates on cash | (1.6) | 2.0 | (3.3) | 1.1 |
| Net increase (decrease) in cash and cash equivalents | 32.4 | (867.9) | (0.8) | (1,730.7) |
| Cash and cash equivalents at beginning of the period | 3,499.1 | 5,186.6 | 3,532.3 | 6,049.4 |
| Cash and cash equivalents at end of the period | 3,531.5 | 4,318.7 | 3,531.5 | 4,318.7 |
ASML - Quarterly Summary US GAAP Consolidated Statements of Operations
| Three months ended, | |||||
|---|---|---|---|---|---|
| Sep 27, | Dec 31, | Apr 4, | Jul 4, | Oct 3, | |
| (unaudited, in millions €, except per share data) | 2020 | 2020 | 2021 | 2021 | 2021 |
| Net system sales | 3,095.6 | 3,198.3 | 3,128.8 | 2,949.6 | 4,111.1 |
| Net service and field option sales | 862.4 | 1,055.8 | 1,235.1 | 1,070.6 | 1,130.2 |
| Total net sales | 3,958.0 | 4,254.1 | 4,363.9 | 4,020.2 | 5,241.3 |
| Total cost of sales | (2,076.6) | (2,043.0) | (2,011.5) | (1,975.6) | (2,529.9) |
| Gross profit | 1,881.4 | 2,211.1 | 2,352.4 | 2,044.6 | 2,711.4 |
| Research and development costs | (534.0) | (555.9) | (623.4) | (633.8) | (609.2) |
| Selling, general and administrative costs | (131.5) | (151.5) | (168.4) | (171.8) | (182.9) |
| Income from operations | 1,215.9 | 1,503.7 | 1,560.6 | 1,239.0 | 1,919.3 |
| Interest and other, net | (8.4) | (8.0) | (12.1) | (9.8) | (10.5) |
| Income before income taxes | 1,207.5 | 1,495.7 | 1,548.5 | 1,229.2 | 1,908.8 |
| Benefit from (provision for) income taxes | (166.5) | (170.2) | (230.3) | (204.2) | (270.9) |
| Income after income taxes | 1,041.0 | 1,325.5 | 1,318.2 | 1,025.0 | 1,637.9 |
| Profit related to equity method investments | 20.5 | 25.0 | 13.2 | 13.2 | 102.3 |
| Net income | 1,061.5 | 1,350.5 | 1,331.4 | 1,038.2 | 1,740.2 |
| Basic net income per ordinary share | 2.54 | 3.23 | 3.21 | 2.52 | 4.27 |
| Diluted net income per ordinary share | 2.53 | 3.23 | 3.20 | 2.52 | 4.26 |
| Weighted average number of ordinary shares used in computing per share amounts (in millions): | |||||
| Basic | 418.4 | 417.5 | 415.3 | 411.5 | 407.9 |
| Diluted | 419.2 | 418.4 | 415.8 | 412.0 | 408.6 |
ASML - Quarterly Summary Ratios and other data
| Sep 27, | Dec 31, | Apr 4, | Jul 4, | Oct 3, | |
|---|---|---|---|---|---|
| (unaudited, in millions €, except otherwise indicated) | 2020 | 2020 | 2021 | 2021 | 2021 |
| Gross profit as a percentage of net sales | 47.5 % | 52.0 % | 53.9 % | 50.9 % | 51.7 % |
| Income from operations as a percentage of net sales | 30.7 % | 35.3 % | 35.8 % | 30.8 % | 36.6 % |
| Net income as a percentage of net sales | 26.8 % | 31.7 % | 30.5 % | 25.8 % | 33.2 % |
| Income taxes as a percentage of income before income taxes | 13.8 % | 11.4 % | 14.9 % | 16.6 % | 14.2 % |
| Shareholders' equity as a percentage of total assets | 54.0 % | 50.8 % | 50.1 % | 43.5 % | 42.1 % |
| Sales of lithography systems (in units) 1 | 60 | 80 | 76 | 72 | 79 |
| Value of booked systems (EUR millions) 2 | 2,868 | 4,238 | 4,740 | 8,271 | 6,179 |
| Net bookings lithography systems (in units) 1, 2 | 73 | 123 | 120 | 167 | 178 |
| Number of payroll employees in FTEs | 24,749 | 26,614 | 27,248 | 27,777 | 29,025 |
| Number of temporary employees in FTEs | 1,451 | 1,459 | 1,561 | 1,609 | 1,659 |
1. Lithography systems do not include metrology and inspection systems.
2. Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV excluding the EUV 0.55 NA (High-NA) systems).
ASML - Quarterly Summary US GAAP Consolidated Balance Sheets
| Sep 27, | Dec 31, | Apr 4, | Jul 4, | Oct 3, | |
|---|---|---|---|---|---|
| (unaudited, in millions €) | 2020 | 2020 | 2021 | 2021 | 2021 |
| ASSETS | |||||
| Cash and cash equivalents | 3,531.5 | 6,049.4 | 3,243.8 | 5,186.6 | 4,318.7 |
| Short-term investments | 876.3 | 1,302.2 | 1,411.6 | 186.7 | 137.0 |
| Accounts receivable, net | 2,458.8 | 1,310.3 | 2,239.2 | 2,782.0 | 3,383.3 |
| Finance receivables, net | 1,855.4 | 1,710.5 | 2,218.6 | 1,637.4 | 1,185.9 |
| Current tax assets | 265.6 | 67.3 | 809.7 | 608.2 | 289.5 |
| Contract assets | 176.8 | 119.2 | 107.4 | 178.9 | 272.0 |
| Inventories, net | 4,613.7 | 4,569.4 | 4,748.1 | 5,086.3 | 4,944.2 |
| Other assets | 772.7 | 801.7 | 915.7 | 922.9 | 995.0 |
| Held for sale assets | — | — | 165.5 | 150.2 | 152.7 |
| Total current assets | 14,550.8 | 15,930.0 | 15,859.6 | 16,739.2 | 15,678.3 |
| Finance receivables, net | 349.6 | 400.5 | 66.6 | 6.2 | 139.0 |
| Deferred tax assets | 610.7 | 671.5 | 700.8 | 710.5 | 986.0 |
| Other assets | 961.5 | 951.4 | 1,313.4 | 1,016.4 | 1,120.9 |
| Equity method investments | 918.0 | 820.7 | 842.5 | 864.9 | 963.2 |
| Goodwill | 4,541.1 | 4,629.1 | 4,555.5 | 4,555.5 | 4,555.6 |
| Other intangible assets, net | 1,035.4 | 1,049.0 | 1,014.2 | 987.7 | 963.8 |
| Property, plant and equipment, net | 2,198.3 | 2,470.3 | 2,521.6 | 2,609.4 | 2,730.3 |
| Right-of-use assets - Operating | 180.1 | 180.1 | 179.7 | 161.8 | 155.0 |
| Right-of-use assets - Finance | 117.9 | 164.8 | 164.8 | 163.9 | 5.9 |
| Total non-current assets | 10,912.6 | 11,337.4 | 11,359.1 | 11,076.3 | 11,619.7 |
| Total assets | 25,463.4 | 27,267.4 | 27,218.7 | 27,815.5 | 27,298.0 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities | 4,990.9 | 6,603.5 | 6,829.1 | 8,707.5 | 9,114.7 |
| Held for sale liabilities | — | — | 47.2 | 46.6 | 47.9 |
| Total current liabilities | 4,990.9 | 6,603.5 | 6,876.3 | 8,754.1 | 9,162.6 |
| Long-term debt | 4,626.7 | 4,662.8 | 4,634.2 | 4,619.9 | 4,105.8 |
| Deferred and other tax liabilities | 209.1 | 238.3 | 245.2 | 247.7 | 282.6 |
| Contract liabilities | 1,652.8 | 1,639.9 | 1,583.2 | 1,860.2 | 2,001.7 |
| Accrued and other liabilities | 241.4 | 257.5 | 250.9 | 240.3 | 242.9 |
| Total non-current liabilities | 6,730.0 | 6,798.5 | 6,713.5 | 6,968.1 | 6,633.0 |
| Total liabilities | 11,720.9 | 13,402.0 | 13,589.8 | 15,722.2 | 15,795.6 |
| Total shareholders' equity | 13,742.5 | 13,865.4 | 13,628.9 | 12,093.3 | 11,502.4 |
| Total liabilities and shareholders' equity | 25,463.4 | 27,267.4 | 27,218.7 | 27,815.5 | 27,298.0 |
ASML - Quarterly Summary US GAAP Consolidated Statements of Cash Flows
| Three months ended, | |||||
|---|---|---|---|---|---|
| Sep 27, | Dec 31, | Apr 4, | Jul 4, | Oct 3, | |
| (unaudited, in millions €) | 2020 | 2020 | 2021 | 2021 | 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Net income | 1,061.5 | 1,350.6 | 1,331.4 | 1,038.2 | 1,740.2 |
| Adjustments to reconcile net income to net cash flows from operating activities: |
|||||
| Depreciation and amortization | 122.0 | 125.4 | 117.9 | 112.7 | 116.2 |
| Impairment and loss (gain) on disposal | 0.8 | 0.8 | 6.2 | 0.2 | (39.8) |
| Share-based compensation expense | 22.5 | 6.2 | 21.0 | 29.0 | 34.0 |
| Inventory reserves | 36.3 | 77.6 | 34.4 | 44.0 | 52.9 |
| Deferred tax expense (benefit) | (110.6) | (60.7) | (35.8) | (7.5) | (270.1) |
| Equity method investments | (26.1) | 95.8 | (21.5) | (22.5) | (97.3) |
| Changes in assets and liabilities | (915.3) | 3,074.7 | (2,395.3) | 2,374.8 | 265.5 |
| Net cash provided by (used in) operating activities | 191.1 | 4,670.4 | (941.7) | 3,568.9 | 1,801.6 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||
| Purchase of property, plant and equipment | (212.5) | (292.9) | (189.4) | (241.1) | (197.0) |
| Purchase of intangible assets | (9.1) | (12.2) | (7.9) | (6.3) | (8.0) |
| Purchase of short-term investments | (343.7) | (820.8) | (608.5) | — | (50.0) |
| Maturity of short-term investments | 408.7 | 394.8 | 499.1 | 1,224.9 | 99.7 |
| Loans issued and other investments | (10.0) | (2.2) | — | — | (124.3) |
| Proceeds from sale of subsidiaries | — | — | — | 12.9 | — |
| Acquisition of subsidiaries (net of cash acquired) | — | (222.8) | — | — | — |
| Net cash provided by (used in) investing activities | (166.6) | (956.1) | (306.7) | 990.4 | (279.6) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||
| Dividend paid | — | (501.6) | — | (639.1) | — |
| Purchase of treasury shares | — | (700.0) | (1,567.6) | (1,983.9) | (2,401.6) |
| Net proceeds from issuance of shares | 10.4 | 7.9 | 11.0 | 13.6 | 12.3 |
| Repayment of debt and finance lease obligations | (0.9) | (0.7) | (3.6) | (3.2) | (2.6) |
| Net cash provided by (used in) financing activities | 9.5 | (1,194.4) | (1,560.2) | (2,612.6) | (2,391.9) |
| Net cash flows | 34.0 | 2,519.9 | (2,808.6) | 1,946.7 | (869.9) |
| Effect of changes in exchange rates on cash | (1.6) | (2.0) | 3.0 | (3.9) | 2.0 |
| Net increase (decrease) in cash and cash equivalents | 32.4 | 2,517.9 | (2,805.6) | 1,942.8 | (867.9) |
| Cash and cash equivalents at beginning of the period | 3,499.1 | 3,531.5 | 6,049.4 | 3,243.8 | 5,186.6 |
| Cash and cash equivalents at end of the period | 3,531.5 | 6,049.4 | 3,243.8 | 5,186.6 | 4,318.7 |
Notes to the Summary US GAAP Consolidated Financial Statements
Basis of preparation
The accompanying unaudited Summary Consolidated Financial Statements have been prepared in conformity with the accounting principles generally accepted in the United States of America ("US GAAP").
For further details on our annual disclosure requirements under US GAAP, including our significant accounting policies, these interim unaudited Summary Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes included within our 2020 Annual Report based on US GAAP, which is available on www.asml.com.
Forward Looking Statements
This document contains statements that are forward-looking, including statements with respect to expected trends, including trends in end markets and technology industry and business environment trends, outlook and expected financial results, including expected net sales, gross margin, R&D costs, SG&A costs and estimated annualized effective tax rate, expected growth in net sales, expected trends in Logic and Memory demand and sales, annual revenue and gross margin for 2025, annual revenue growth rate for the period 2020-2030, timing of revenue recognition, including estimates of revenue to be deferred into 2022, expected capacity growth, long term demand drivers, plans and strategies, including ESG strategy, statements with respect to dividends and share buybacks, including the intention to continue to return significant amounts of cash to shareholders through a combination of share buybacks and growing annualized dividends including the 2021 interim dividend and statements with respect to the 2021-2023 share buyback program including the amount of shares intended to be repurchased under the program and other non-historical statements. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue", "target", "future", "progress", "goal" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve a number of substantial known and unknown risks and uncertainties. These risks and uncertainties include, without limitation, economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors, the impact of general economic conditions on consumer confidence and demand for our customers' products, performance of our systems, the impact of the COVID-19 outbreak and measures taken to contain it on us, our suppliers, the global economy and financial markets, and other factors that may impact ASML's financial results, including customer demand and ASML's ability to obtain supplies for its products, the success of technology advances and the pace of new product development and customer acceptance of and demand for new products, production capacity and our ability to increase capacity to meet demand, the number and timing of systems ordered, shipped and recognized in revenue, and the risk of order cancellation or push out, production capacity for our systems including delays in system production, risks relating to supply chain capacity and logistics, trends in the semi-conductor industry, our ability to enforce patents and protect intellectual property rights and the outcome of intellectual property disputes and litigation, availability of raw materials, critical manufacturing equipment and qualified employees, trade environment, import/export and national security regulations and orders and their impact on us, changes in exchange and tax rates, available liquidity and liquidity requirements, our ability to refinance our indebtedness, available cash and distributable reserves for, and other factors impacting, dividend payments and share repurchases, results of the share repurchase programs and other risks indicated in the risk factors included in ASML's Annual Report on Form 20-F for the year ended December 31, 2020 and other filings with and submissions to the US Securities and Exchange Commission. These forward-looking statements are made only as of the date of this document. We undertake no obligation to update any forward-looking statements after the date of this report or to conform such statements to actual results or revised expectations, except as required by law.