ASML Holding (ASML) 6-K Current report (foreign)

Exhibit 99.4

ASML — Summary IFRS Consolidated Income Statements^1,2

	Three months ended,						Twelve months ended,
(in thousands EUR)	Dec 31, 2007			Dec 31, 2008			Dec 31, 2007			Dec 31, 2008
Net system sales		834,857			380,466			3,351,281			2,516,762
Net service and field option sales		120,063			113,354			416,904			436,916
Total net sales		954,920			493,820			3,768,185			2,953,678
Cost of sales		583,687			494,765			2,318,746			2,034,393
Gross profit (loss) on sales		371,233			(945	)		1,449,439			919,285
Research and development costs, net of credits		84,707			77,604			352,942			335,964
Selling, general and administrative costs		73,480			47,689			241,928			212,961
Operating income (loss)		213,046			(126,238	)		854,569			370,360
Interest income (expense)		(2,180	)		2,812			19,389			17,959
Income (loss) before income taxes		210,866			(123,426	)		873,958			388,319
(Provision for) benefit from income taxes		10,166			40,789			(158,907	)		(11,455	)
Net income (loss)		221,032			(82,637	)		715,051			376,864

ASML — Summary IFRS Consolidated Balance Sheets^1,2

(in thousands EUR)	Dec 31, 2007		Dec 31, 2008
ASSETS
Property, plant and equipment		380,894		550,921
Goodwill		136,246		139,626
Other intangible assets		216,908		289,530
Deferred tax assets		226,239		225,543
Derivative financial instruments		20,930		53,206
Other assets		32,828		60,479
Total non-current assets		1,014,045		1,319,305
Inventories		1,102,210		999,150
Current tax assets		—		83,022
Derivative financial instruments		12,319		39,240
Accounts receivable, net		637,975		469,498
Other current assets		193,415		170,680
Cash and cash equivalents		1,271,636		1,109,184
Total current assets		3,217,555		2,870,774
Total assets		4,231,600		4,190,079
EQUITY AND LIABILITIES
Equity		2,039,067		2,188,741
Long-term debt		595,783		661,524
Derivative financial instruments		—		19,743
Deferred tax liabilities		257,324		255,821
Provisions, non-current		—		15,495
Other liabilities		7,936		7,195
Total non-current liabilities		861,043		959,778
Accounts payable		282,953		193,690
Accrued liabilities and other		927,841		775,102
Current tax liabilities		109,415		20,039
Derivative financial instruments		11,281		48,051
Provisions, current		—		4,678
Total current liabilities		1,331,490		1,041,560
Total equity and liabilities		4,231,600		4,190,079

ASML — Summary IFRS Consolidated Statements of Cash Flows^1,2

	Three months ended,						Twelve months ended,
(in thousands EUR)	Dec 31, 2007			Dec 31, 2008			Dec 31, 2007			Dec 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		221,032			(82,637	)		715,051			376,864
Depreciation and amortization		48,262			76,042			201,324			216,093
Impairment charges		874			20,546			9,022			22,742
Loss on disposals of property, plant and equipment		1,638			1,603			14,210			5,430
Share-based payments		6,823			2,985			17,165			12,843
Allowance for doubtful debts		(1,889	)		153			(178	)		(160	)
Allowance for obsolete inventory		28,980			85,777			79,592			139,628
Deferred income taxes		(142,228	)		2,242			79,701			(1,348	)
Income taxes payable		115,105			(91,441	)		(78,337	)		(158,277	)
Change in assets and liabilities		(145,029	)		(125,112	)		(191,012	)		(171,372	)
Net cash provided by (used in) operating activities		133,568			(109,842	)		846,538			442,443
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment		(53,964	)		(71,060	)		(179,152	)		(259,770	)
Proceeds from sale of property, plant and equipment		1,656			—			5,011			—
Purchases of intangible assets		(40,383	)		(49,452	)		(136,521	)		(179,563	)
Acquisition of subsidiary (net of cash acquired)		—			—			(188,011	)		—
Net cash used in investing activities		(92,691	)		(120,512	)		(498,673	)		(439,333	)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital repayment		(1,011,857	)		—			(1,011,857	)		—
Purchase of shares in conjunction with conversion rights of bond holders and stock options		(203,603	)		—			(359,856	)		(87,605	)
Dividend paid		—			—			—			(107,841	)
Net proceeds from issuance of shares and stock options		11,480			6,509			63,307			11,475
Net proceeds from issuance of bonds		(35	)		—			593,755			—
Net proceeds from other long term debt		—			19,975			—			19,975
Redemption and/or repayment of debt		(7,843	)		(1,131	)		(9,718	)		(2,411	)
Net cash provided by (used in) financing activities		(1,211,858	)		25,353			(724,369	)		(166,407	)
Net cash flows		(1,170,981	)		(205,001	)		(376,504	)		(163,297	)
Effect of changes in exchange rates on cash		(2,610	)		1,192			(7,717	)		845
Net decrease in cash & cash equivalents		(1,173,591	)		(203,809	)		(384,221	)		(162,452	)

ASML — Quarterly Summary IFRS Consolidated Income Statements^1,2

	Three months ended,
	Dec 31,			Mar 30,			Jun 29,		Sep 28,			Dec 31,
(in millions EUR)	2007			2008			2008		2008			2008
Net system sales		834.8			820.0			725.6		590.7			380.5
Net service and field option sales		120.1			99.2			118.6		105.8			113.3
Total net sales		954.9			919.2			844.2		696.5			493.8
Cost of sales		583.7			561.7			525.3		452.7			494.7
Gross profit (loss) on sales		371.2			357.5			318.9		243.8			(0.9	)
Research and development costs, net of credits		84.7			82.7			87.1		88.6			77.6
Selling, general and administrative costs		73.5			57.7			55.3		52.2			47.7
Operating income (loss)		213.0			217.1			176.5		103.0			(126.2	)
Interest income (expense)		(2.2	)		3.6			5.0		6.6			2.8
Income (loss) before income taxes		210.8			220.7			181.5		109.6			(123.4	)
Benefit from (provision for) income taxes		10.2			(54.2	)		29.0		(27.0	)		40.8
Net income (loss)		221.0			166.5			210.5		82.6			(82.6	)

ASML — Summary IFRS Consolidated Balance Sheets^1,2

	Dec 31,		Mar 30,			Jun 29,		Sep 28,		Dec 31,
(in millions EUR)	2007		2008			2008		2008		2008
ASSETS
Property, plant and equipment		380.9		401.4			458.1		503.1		550.9
Goodwill		136.3		127.2			127.3		137.3		139.6
Other intangible assets		216.9		238.0			260.5		281.3		289.5
Deferred tax assets		226.3		213.3			238.4		228.6		225.6
Derivative financial instruments		20.9		47.7			1.4		12.3		53.2
Other assets		32.8		31.8			32.0		32.6		60.5
Total non-current assets		1,014.1		1,059.4			1,117.7		1,195.2		1,319.3
Inventories		1,102.2		1,152.0			1,130.2		1,134.0		999.2
Current tax assets		—		—			—		—		83.0
Derivative financial instruments		12.3		36.5			46.6		21.0		39.2
Accounts receivable, net		638.0		741.5			516.9		574.2		469.5
Other current assets		193.4		202.4			185.9		210.6		170.7
Cash and cash equivalents		1,271.6		1,397.1			1,360.9		1,313.0		1,109.2
Total current assets		3,217.5		3,529.5			3,240.5		3,252.8		2,870.8
Total assets		4,231.6		4,588.9			4,358.2		4,448.0		4,190.1
EQUITY AND LIABILITIES
Equity		2,039.1		2,121.8			2,242.6		2,314.7		2,188.7
Long-term debt		595.8		609.1			585.6		591.0		661.5
Derivative financial instruments		—		—			11.2		0.9		19.8
Deferred tax liabilities		257.3		282.9			260.2		256.9		255.8
Provisions, non-current		—		—			—		—		15.5
Other liabilities		7.9		7.2			7.4		7.8		7.2
Total non-current liabilities		861.0		899.2			864.4		856.6		959.8
					��
Accounts payable		283.0		479.6			267.2		271.0		193.7
Accrued liabilities and other		927.8		957.7			910.8		948.1		775.1
Current tax liabilities		109.4		111.5			50.8		42.4		20.0
Derivative financial instruments		11.3		19.1			22.4		15.2		48.1
Provisions, current		—		—			—		—		4.7
Total current liabilities		1,331.5		1,567.9			1,251.2		1,276.7		1,041.6
Total equity and liabilities		4,231.6		4,588.9			4,358.2		4,448.0		4,190.1

ASML — Summary IFRS Consolidated Statements of Cash Flows^1,2

	Three months ended,
	Dec 31,			Mar 30,			Jun 29,			Sep 28,			Dec 31,
(in millions EUR)	2007			2008			2008			2008			2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		221.0			166.5			210.5			82.6			(82.6	)
Depreciation and amortization		48.2			45.3			44.7			50.1			76.1
Impairment charges		0.9			1.5			—			0.6			20.4
Loss on disposals of property, plant and equipment		1.6			1.1			1.3			1.4			1.6
Share-based payments		6.8			3.4			2.9			3.6			3.0
Allowance for doubtful debts		(1.9	)		0.5			(0.6	)		(0.2)			0.2
Allowance for obsolete inventory		29.0			20.8			11.8			21.3			85.8
Deferred income taxes		(142.2	)		28.5			(42.7	)		10.6			2.2
Income taxes payable		115.1			1.2			(59.7	)		(8.4)			(91.5	)
Change in assets and liabilities		(145.0	)		44.1			10.8			(101.2	)		(125.1	)
Net cash provided by (used in) operating activities		133.5			312.9			179.0			60.4			(109.9	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment		(54.0	)		(55.0	)		(65.5	)		(68.3	)		(71.1	)
Proceeds from sale of property, plant and equipment		1.7			—			—			—			—
Purchases of intangible assets		(40.4	)		(45.6	)		(43.0	)		(41.4	)		(49.4	)
Net cash used in investing activities		(92.7	)		(100.6	)		(108.5	)		(109.7	)		(120.5	)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital repayment		(1,011.9	)		—			—			—			—
Purchase of shares in conjunction with conversion rights of bond holders and stock options		(203.6	)		(87.6	)		—			—			—
Dividend paid		—			—			(107.4	)		(0.4	)		—
Net proceeds from issuance of shares and stock options		11.5			3.0			0.5			1.4			6.5
Net proceeds from other long term debt		—			—			—			—			20.0
Redemption and/or repayment of debt		(7.8	)		—			—			(1.3	)		(1.1	)
Net cash provided by (used in) financing activities		(1,211.8	)		(84.6	)		(106.9	)		(0.3	)		25.4
Net cash flows		(1,171.0	)		127.7			(36.4	)		(49.6	)		(205.0	)
Effect of changes in exchange rates on cash		(2.6	)		(2.2	)		0.2			1.7			1.2
Net decrease in cash & cash equivalents		(1,173.6	)		125.5			(36.2	)		(47.9	)		(203.8	)

ASML — Notes to the Summary IFRS Consolidated Financial Statements

Basis of Presentation

ASML has prepared the accompanying summary consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU — accounting principles generally accepted in the Netherlands for companies quoted on Euronext Amsterdam. Further disclosures, as required under IFRS in annual reports and interim reporting (IAS 34), are not included. The accompanying consolidated financial statements are stated in thousands of euros (‘EUR’), except otherwise indicated.

For internal and external reporting purposes, ASML follows accounting principles generally accepted in the United States of America (“U.S. GAAP”). U.S. GAAP is ASML’s primary accounting standard for the Company’s setting of financial and operational performance targets.

Principles of consolidation

The consolidated financial statements include the accounts of ASML Holding N.V. and all of its majority-owned subsidiaries. Subsidiaries are all entities over which ASML has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. All intercompany profits, balances and transactions have been eliminated in the consolidation.

Use of estimates

The preparation of ASML’s consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the balance sheet dates and the reported amounts of revenue and expense during the reported periods. Actual results could differ from those estimates.

Recognition of revenues

ASML recognizes revenue when all four revenue recognition criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to the buyer is fixed or determinable; and collectibility is reasonably assured. At ASML, this policy generally results in revenue recognition from the sale of a system upon shipment. The revenue from the installation of a system is generally recognized upon completion of that installation at the customer site. Each system undergoes, prior to shipment, a “Factory Acceptance Test” in ASML’s clean room facilities, effectively replicating the operating conditions that will be present on the customer’s site, in order to verify whether the system will meet its standard specifications and any additional technical and performance criteria agreed with the customer. A system is shipped, and revenue recognized, only after all specifications are met and customer sign-off is received or waived. Although each system’s performance is re-tested upon installation at the customer’s site, ASML has never failed to successfully complete installation of a system at a customer’s premises.

For arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred at estimated fair value until delivery of these elements. Revenue from installation services and service contracts provided to our customers is initially deferred and is recognized when the installation is completed and, in case of service contracts, over the life of those contracts. Revenue from extended and enhanced warranties is recognized in income on a straight-line basis over the contract period. The costs of providing services under extended and enhanced warranties are recognized when they occur.

ASML — Reconciliation U.S. GAAP — IFRS^1,2

Net income

	Three months ended,						Twelve months ended,
(in thousands EUR)	Dec 31, 2007			Dec 31, 2008			Dec 31, 2007			Dec 31, 2008
Net income under U.S. GAAP		192,542			(88,024	)		671,001			322,370
Share-based payments (see Note 1)		(875	)		447			(582	)		(2,562	)
Capitalization of development costs (see Note 2)		20,513			7,219			50,089			62,416
Convertible subordinated notes (see Note 3)		—			—			(6,661	)		—
Income taxes (see Note 4)		8,852			(2,279	)		1,204			(5,360	)
Net income under IFRS		221,032			(82,637	)		715,051			376,864

Shareholders’ equity

	Dec 31,		Mar 30,			Jun 29,			Sep 28,			Dec 31,
(in thousands EUR)	2007		2008			2008			2008			2008
Shareholders’ equity under U.S. GAAP		1,891,004		1,958,159			2,060,575			2,122,848			1,988,769
Share-based payments (see Note 1)		787		(3,420	)		(3,266	)		(7,904	)		(6,539	)
Capitalization of development costs (see Note 2)		138,424		157,900			176,818			193,780			201,717
Income taxes (see Note 4)		8,852		9,186			8,478			5,969			4,794
Shareholders’ equity under IFRS		2,039,067		2,121,825			2,242,605			2,314,693			2,188,741

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January 1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of its share-based payments with respect to stock options granted to its employees after November 7, 2002.

Under U.S. GAAP, ASML applies SFAS No. 123(R) “Share-Based Payment” which is a revision of SFAS No.123. SFAS 123(R) requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those instruments.

Note 2 Capitalization of development costs

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38, capitalized development expenditures are amortized over the expected useful life of the related product generally ranging between 2 and 3 years. Amortization starts when the developed product is ready for volume production.

Under U.S. GAAP, ASML applies SFAS No. 2, “Accounting for Research and Development Costs”. In accordance with SFAS No. 2, ASML charges costs relating to research and development to operating expense as incurred.

Note 3 Convertible Subordinated Notes

Under IFRS, ASML applies IAS 32 “Financial instruments: Disclosure and presentation” and IAS 39 “Financial instruments: Recognition and measurement” beginning from January 1, 2005. In accordance with IAS 32 and IAS 39, ASML accounts separately for the equity and liability component of its convertible notes (“Split accounting”). The equity component relates to the grant of a conversion option to shares to the holder of the bond. Split accounting results in additional interest charges.

Under U.S. GAAP, ASML accounts for its convertible bonds as a liability at the principal amount outstanding. As of December 31, 2007 ASML has no Convertible Subordinated Notes outstanding.

Note 4 Income taxes

Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1, 2005. In accordance with IAS 12, unrealized net income resulting from intercompany transactions that is eliminated from the carrying amount of assets on consolidation gives rise to a temporary difference for which deferred taxes must be recognized on consolidation. The deferred taxes are calculated based on the tax rate applicable in the purchaser’s tax jurisdiction.

Under U.S. GAAP, the elimination of unrealized net income from intercompany transactions that are eliminated from the carrying amount of assets on consolidation, give rise to a temporary difference for which prepaid taxes must be recognized on consolidation. Contrary to IFRS, the prepaid taxes under U.S. GAAP are calculated based on the tax rate applicable in the seller’s tax jurisdiction.

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average sales price, gross margin and expenses. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of credit market deterioration on consumer confidence and demand for our customers’ products, competitive products and pricing, manufacturing efficiencies, new product development and customer acceptance of new products, ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission.

1

All quarterly information in this press release is unaudited.

2

In anticipation of endorsement by the European Union in Q4 2008, ASML has early adopted IFRIC 13 “Customer Loyalty Programmes” as of January 1, 2008. IFRIC 13 requires award credits offered to its customers as part of a volume purchase agreement to be accounted for using the deferred revenue model. Until December 31, 2007 cost accrual method was used. ASML early adopted this interpretation because the deferred revenue model better reflects the business rationale for offering award credits. Comparative figures for 2007 were adjusted to reflect this change in accounting policy. The impact of this change on equity as per January 1, 2007 amounted to EUR 8.5 million (decrease) and on net income for the year 2007 and the first quarter of 2008 amounted to EUR 8.2 million (decrease) and EUR 0.1 million (increase) respectively.