Asml Holding NV 6-K, filed Apr 15, 2020
Asml Holding NV (ASML)
6-K
2020-04-15
For: 2020-03-28
View Original
Added on
April 02, 2026
About this 6-K
Asml Holding NV filed this 6-K on April 15, 2020.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
______________________
FORM 6-K
REPORT OF A FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For April 15, 2020
______________________
ASML Holding N.V.
De Run 6501
5504 DR Veldhoven
The Netherlands
(Address of principal executive offices)
______________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
EXHIBITS 99.1 AND 99.3 TO THIS REPORT ON FORM 6-K ARE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-116337), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-126340), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-136362), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-141125), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-142254), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-144356), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-147128), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-153277), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-162439), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-170034), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-188938), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-190023), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-192951), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-203390), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-219442) AND THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-227464) OF ASML HOLDING N.V. AND IN THE OUTSTANDING PROSPECTUSES CONTAINED IN SUCH REGISTRATION STATEMENTS.
Exhibits 
99.1 | “ASML reports €2.4 billion net sales at 45.1% gross margin in Q1 2020. Strong order intake and currently no change in demand. ASML refrains from guidance due to increased uncertainty in current environment", press release dated April 15, 2020 |
99.2 | “ASML reports €2.4 billion net sales at 45.1% gross margin in Q1 2020. Strong order intake and currently no change in demand. ASML refrains from guidance due to increased uncertainty in current environment", presentation dated April 15, 2020 |
99.3 | Summary US GAAP Consolidated Financial Statements |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ASML HOLDING N.V. (Registrant)
Date: April 15, 2020 By: /s/ Peter T.F.M. Wennink
Peter T.F.M. Wennink
Chief Executive Officer
Exhibit 99.1
ASML reports €2.4 billion net sales at 45.1% gross margin in Q1 2020
Strong order intake and currently no change in demand
ASML refrains from guidance due to increased uncertainty in current environment
VELDHOVEN, the Netherlands, April 15, 2020 - today ASML Holding NV (ASML) publishes its Q1 2020 results.
• | Q1 net sales of €2.4 billion, net income of €0.4 billion, gross margin of 45.1% |
• | Q1 net bookings of €3.1 billion |
(Figures in millions of euros unless otherwise indicated) | Q4 2019 | Q1 2020 | |
Net sales | 4,036 | 2,441 | |
...of which Installed Base Management sales 1 | 906 | 857 | |
New lithography systems sold (units) | 67 | 49 | |
Used lithography systems sold (units) | 9 | 8 | |
Net bookings 2 | 2,402 | 3,085 | |
Gross profit | 1,940 | 1,101 | |
Gross margin (%) | 48.1 | 45.1 | |
Net income | 1,134 | 391 | |
EPS (basic; in euros) | 2.70 | 0.93 | |
End-quarter cash and cash equivalents and short-term investments | 4,718 | 4,112 | |
(1) Installed Base Management sales equals our net service and field option sales.
(2) Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV excluding the High-NA systems).
Numbers have been rounded for readers' convenience. A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com
1
CEO statement and outlook
"On March 30, ASML provided an update to the market on expected Q1 2020 results, primarily related to the COVID-19 impact. We announced in our press release that we expected revenue in the first quarter to be between €2.4 billion and €2.5 billion, with a gross margin between 45% and 46%, and that impacted revenue was expected to shift to subsequent quarters in 2020.
"Our first-quarter sales came in at €2.44 billion, which is within the range that we announced in our update. The gross margin came in at 45.1%, at the lower end of our updated guidance due to delayed revenue from field upgrades. We shipped four EUV systems in the quarter but we were only able to recognize revenue for two systems, for reasons mentioned in our press release of March 30, 2020. Our Q1 net bookings were strong and came in at €3.1 billion, including €1.5 billion of EUV systems (11), which shows continued strong demand for EUV.
"The demand outlook is currently unchanged and we have not encountered any push-outs or cancellations this year. Despite the challenging circumstances, to date we have been able to continue ASML’s operations. Our order intake is strong. Many of the investments made by our customers are strategic and support their long-term plans. However, in light of the current risks and uncertainties related to COVID-19, we decided to refrain from giving guidance for Q2 and for the full year 2020. There is significant uncertainty about how the current COVID-19 crisis will impact the global GDP development, end markets, our manufacturing capability and supply chain.
"Our primary goal is to ensure, as best as we can, that our colleagues and their families stay safe. Our second goal is to ensure that we continue to serve our customers and to secure the delivery of our product roadmap, including the continuity of our supply. It is very encouraging to see the creativity, resilience and dedication at ASML and the industry overall," said ASML President and Chief Executive Officer Peter Wennink.
Final dividend proposal and share buyback program update
ASML intends to declare a total dividend for 2019 of €2.40 per ordinary share, consisting of an interim dividend of €1.05 per ordinary share, paid in November 2019, and a final dividend payment of €1.35 per ordinary share, as will be proposed to shareholders at the Annual General Meeting (AGM) scheduled for April 22, 2020.
As part of its financial policy to return excess cash to its shareholders through growing annualized dividends and regularly timed share buybacks, in January 2020 ASML announced a new three-year share buyback program, to be executed within the 2020–2022 time frame. As part of this program ASML intends to purchase shares up to €6 billion, which includes a total of up to 0.4 million shares to cover employee share plans. ASML intends to cancel the remainder of the shares repurchased.
On March 30, 2020 ASML announced that, due to the uncertainties arising from COVID-19, ASML decided not to execute any share buybacks in Q2 2020. This decision follows the pause in the execution of the program in the first quarter of the year, after having already performed share buybacks under this program for an amount of approximately €507 million. The three-year share buyback program remains in place.
Media Relations contacts | Investor Relations contacts |
Monique Mols +31 6 5284 4418 | Skip Miller +1 480 235 0934 |
Sander Hofman +31 6 2381 0214 | Marcel Kemp +31 40 268 6494 |
Brittney Wolff Zatezalo +1 408 483 3207 | Peter Cheang +886 3 659 6771 |
Quarterly video interview, investor and media conference call
With this press release, ASML has published a video interview in which CFO Roger Dassen discusses the Q1 2020 results and the impact of the COVID-19 outbreak on our business. This can be viewed on www.asml.com.
2
A conference call for investors and media will be hosted by CEO Peter Wennink and CFO Roger Dassen on April 15, 2020 at 15:00 Central European Time / 09:00 US Eastern Time. Details can be found on our website.
About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is a world in which semiconductor technology is everywhere and helps to tackle society’s toughest challenges. We contribute to this goal by creating products and services that let chipmakers define the patterns that integrated circuits are made of. We continuously raise the capabilities of our products, enabling our customers to increase the value and reduce the cost of chips. By helping to make chips cheaper and more powerful, we help to make semiconductor technology more attractive for a larger range of products and services, which in turn enables progress in fields such as healthcare, energy, mobility and entertainment. ASML is a multinational company with offices in more than 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 25,300 people on payroll and flexible contracts (expressed in full time equivalents). ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. More information about ASML, our products and technology, and career opportunities is available on www.asml.com.
US GAAP Financial Reporting
ASML's primary accounting standard for quarterly earnings releases and annual reports is US GAAP, the accounting principles generally accepted in the United States of America. Quarterly US GAAP consolidated statements of operations, consolidated statements of cash flows and consolidated balance sheets are available on www.asml.com.
The consolidated balance sheets of ASML Holding N.V. as of March 29, 2020, the related consolidated statements of operations and consolidated statements of cash flows for the quarter and three months ended March 29, 2020 as presented in this press release are unaudited.
Regulated information
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
3
Forward Looking Statements
This document contains statements that are forward-looking, including statements with respect to expected trends, bookings, annual revenue opportunity in 2020 and through 2025 and long term growth opportunity, expected trends in end markets, expected technology industry and business environment trends, including the expected impact of the Covid-19 pandemic on ASML, expected revenue recognition of systems in Q2/Q3, demand outlook, shrink being a key industry driver supporting innovation and providing long-term industry growth, the expected continuation of Moore’s law and the expectation that EUV will enable continuation of Moore’s law and drive long term value for ASML well into this decade, and statements with respect to plans regarding dividends and share buybacks, including the dividend proposal in respect of 2019, the 2020-2022 share buyback program, including the plan to not make purchases in Q1 and the intention to continue to return excess cash to shareholders through a combination of share buybacks and growing annualized dividends. 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", 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 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, risks related to the Covid-19 virus on the global economy and financial markets, as well as on ASML and its customers and suppliers, the impact on ASML’s and its customers’ and suppliers’ operations and other risks relating to the Covid-19 virus and other factors that may impact ASML’s sales and gross margin, including customer demand and ASML’s ability to supply its products, the success of technology advances and the pace of new product development and customer acceptance of and demand for new products; 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; 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; changes in exchange and tax rates; available liquidity, 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 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 do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
4
Public Exhibit 99.2 ASML reports €2.4 billion net sales at 45.1% gross margin in Q1 Strong order intake and currently no change in demand ASML refrains from guidance due to increased uncertainty in current environment ASML 2020 First-Quarter Veldhoven, the Netherlands April 15, 2020
Public Slide 2 April 15, 2020 Agenda • Investor key messages • Business summary • Outlook • Financial statements
Public Slide 3 April 15, 2020 Investor key messages
Public Investor key messages Slide 4 April 15, 2020 • Long term growth opportunity remains, driven by end markets growth enabled by major innovation in semiconductors • Shrink is a key industry driver supporting innovation and providing long term industry growth • Holistic Lithography enables affordable shrink and therefore delivers compelling value for our customers • DUV, EUV and Application products are highly differentiated solutions that provide unique value drivers for our customers and ASML • EUV will enable continuation of Moore’s Law and will drive long term value for ASML well into this decade • In November 2018 ASML modeled an annual revenue opportunity of €13 billion in 2020 under a moderate market scenario and an annual revenue opportunity between €15 – 24 billion through 2025 • We expect to continue to return significant amounts of cash to our shareholders through a combination of share buybacks and growing annualized dividends
Public Slide 5 April 15, 2020 Business summary
Public Q1 results summary Slide 6 April 15, 2020 • Net sales of €2,441 million, net systems sales of €1,584 million, Installed Base Management* sales of €857 million • Gross margin of 45.1% • Operating margin of 17.5% • Net income as a percentage of net sales of 16.0% • Net bookings of €3,085 million, including €1,540 million of EUV systems (11) * Installed Base Management equals our service and field upgrades sales
Public Net system sales breakdown (Quarterly) Slide 7 April 15, 2020 Q1’20 total sales €1,584 million Q4’19 total sales €3,130 million
Public Total net sales € million by End-use Slide 8 April 15, 2020 Installed Base Management Logic Memory As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The comparative numbers 2016 - 2017 presented above have not been adjusted to reflect these changes in accounting policy.
Public Litho systems bookings activity by End-use Slide 9 April 15, 2020 Lithography systems Q1’20 total value New Used €3,085 million Units 72 1 Lithography systems New Used Q4’19 total value Units 57 3 €2,402 million Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV excluding the High-NA systems).
Public Capital return to shareholders Slide 10 April 15, 2020 • € 507 million worth of shares has been repurchased in Q1 and no share buyback transactions will be executed in Q2 2020 • Intention to declare a total dividend for 2019 of €2.40 per ordinary share, consisting of: ◦ interim dividend of €1.05 per ordinary share paid in November 2019 ◦ final dividend payment of €1.35 per ordinary share, as proposed to the 2020 AGM Proposed dividend Dividend proposed Dividend paid Dividend paid Share buyback interim + proposed The dividend for a year is paid in the subsequent year, except interim Capital return is cumulative share buyback + dividend
Public Slide 11 April 15, 2020 Outlook
Public Q2 Outlook Slide 12 April 15, 2020 • For this quarter ASML refrains from guidance due to the increased uncertainty in current environment
Public Slide 13 April 15, 2020 Financial statements
Public Consolidated statements of operations € million Slide 14 Quarter on Quarter April 15, 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Net sales 2,229 2,568 2,987 4,036 2,441 Gross profit 928 1,105 1,307 1,940 1,101 Gross margin % 41.6 43.0 43.7 48.1 45.1 R&D costs (473) (487) (493) (516) (544) SG&A costs (121) (123) (129) (148) (130) Income from operations 334 495 685 1,277 427 Operating income as a % of net sales 15.0 19.2 23.0 31.6 17.5 Net income 355 476 627 1,134 391 Net income as a % of net sales 15.9 18.5 21.0 28.1 16.0 Earnings per share (basic) € 0.84 1.13 1.49 2.70 0.93 Earnings per share (diluted) € 0.84 1.13 1.49 2.69 0.93 Lithography systems sold (units) 1 48 48 57 76 57 Net booking value 2 1,399 2,828 5,111 2,402 3,085 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 High-NA systems). Our Q3 2019 systems net bookings include 1 DUV system shipped in Q3 2019, shipped to collaborative Research Center (Imec). This system is not recognized in revenue These numbers have been prepared in accordance with US GAAP. Numbers have been rounded for readers' convenience.
Public Consolidated statements of cash flows € million Slide 15 Quarter on Quarter April 15, 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Cash and cash equivalents, beginning of period 3,121 2,253 1,661 1,586 3,532 Net cash provided by (used in) operating activities (481) 100 69 3,588 (606) Net cash provided by (used in) investing activities (342) 208 (7) (1,017) (444) Net cash provided by (used in) financing activities (48) (896) (142) (626) 240 Effect of changes in exchange rates on cash 3 (4) 5 1 2 Net increase (decrease) in cash and cash equivalents (868) (592) (75) 1,946 (809) Cash and cash equivalents, end of period 2,253 1,661 1,586 3,532 2,724 Short-term investments 1,022 673 484 1,186 1,388 Cash and cash equivalents and short-term investments 3,275 2,335 2,070 4,718 4,112 Purchases of property, plant and equipment and intangible assets (233) (141) (197) (315) (242) Free cash flow 1 (714) (41) (128) 3,273 (848) 1 Free cash flow, which is a non-GAAP measure, is defined as net cash provided by (used in) operating activities minus purchases of Property, plant and equipment and intangible assets), see US GAAP Consolidated Financial Statements. These numbers have been prepared in accordance with US GAAP. Numbers have been rounded for readers' convenience.
Public Consolidated balance sheets € million Slide 16 Quarter on Quarter April 15, 2020 Assets Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Cash & cash equivalents and short-term investments 3,275 2,335 2,070 4,718 4,112 Net accounts receivable and finance receivables 2,523 2,664 3,274 2,773 2,857 Contract assets 104 190 288 231 292 Inventories, net 3,765 3,914 3,895 3,809 4,345 Other assets 1,637 1,771 1,767 1,673 1,808 Tax assets 654 647 649 624 1,011 Equity method investments 934 950 969 833 865 Goodwill 4,541 4,541 4,541 4,541 4,541 Other intangible assets 1,158 1,141 1,123 1,105 1,083 Property, plant and equipment 1,622 1,670 1,818 1,999 2,047 Right-of-use assets 148 211 305 324 317 Total assets 20,361 20,034 20,699 22,630 23,278 Liabilities and shareholders' equity Current liabilities 3,721 3,693 3,712 4,694 4,677 Non-current liabilities 4,674 4,796 4,916 5,344 6,076 Shareholders' equity 11,966 11,545 12,071 12,592 12,525 Total liabilities and shareholders' equity 20,361 20,034 20,699 22,630 23,278 These numbers have been prepared in accordance with US GAAP. Numbers have been rounded for readers' convenience.
Public Forward looking statements Slide 17 April 15, 2020 This document contains statements that are forward-looking, including statements with respect to expected trends, bookings, annual revenue opportunity in 2020 and through 2025 and long term growth opportunity, expected trends in end markets, expected technology industry and business environment trends, including the expected impact of the Covid-19 pandemic on ASML, expected revenue recognition of systems in Q2/Q3, demand outlook, shrink being a key industry driver supporting innovation and providing long-term industry growth, the expected continuation of Moore’s law and the expectation that EUV will enable continuation of Moore’s law and drive long term value for ASML well into this decade, and statements with respect to plans regarding dividends and share buybacks, including the dividend proposal in respect of 2019, the 2020-2022 share buyback program, including the plan to not make purchases in Q1 and the intention to continue to return excess cash to shareholders through a combination of share buybacks and growing annualized dividends. 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", 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 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, risks related to the Covid-19 virus on the global economy and financial markets, as well as on ASML and its customers and suppliers, the impact on ASML’s and its customers’ and suppliers’ operations and other risks relating to the Covid-19 virus and other factors that may impact ASML’s sales and gross margin, including customer demand and ASML’s ability to supply its products, the success of technology advances and the pace of new product development and customer acceptance of and demand for new products; 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; 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; changes in exchange and tax rates; available liquidity, 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 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 do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Exhibit 99.3
ASML - Summary US GAAP Consolidated Statements of Operations
Three months ended, | |||||||
Mar 31, | Mar 29, | ||||||
2019 | 2020 | ||||||
(unaudited, in millions EUR, except per share data) | |||||||
Net system sales | 1,689.0 | 1,584.0 | |||||
Net service and field option sales | 540.1 | 856.6 | |||||
Total net sales | 2,229.1 | 2,440.6 | |||||
Total cost of sales | (1,301.1 | ) | (1,339.2 | ) | |||
Gross profit | 928.0 | 1,101.4 | |||||
Research and development costs | (472.7 | ) | (544.0 | ) | |||
Selling, general and administrative costs | (121.0 | ) | (130.7 | ) | |||
Income from operations | 334.3 | 426.7 | |||||
Interest and other, net | (7.9 | ) | (11.4 | ) | |||
Income before income taxes | 326.4 | 415.3 | |||||
Benefit from (provision for) income taxes | 17.0 | (48.5 | ) | ||||
Income after income taxes | 343.4 | 366.8 | |||||
Profit (loss) related to equity method investments | 12.0 | 23.8 | |||||
Net income | 355.4 | 390.6 | |||||
Basic net income per ordinary share | 0.84 | 0.93 | |||||
Diluted net income per ordinary share | 0.84 | 0.93 | |||||
Weighted average number of ordinary shares used in computing per share amounts (in millions): | |||||||
Basic | 421.1 | 419.0 | |||||
Diluted | 422.5 | 419.7 | |||||
ASML - Ratios and Other Data
Three months ended, | |||||||
Mar 31, | Mar 29, | ||||||
2019 | 2020 | ||||||
(unaudited, in millions EUR, except otherwise indicated) | |||||||
Gross profit as a percentage of net sales | 41.6 | % | 45.1 | % | |||
Income from operations as a percentage of net sales | 15.0 | % | 17.5 | % | |||
Net income as a percentage of net sales | 15.9 | % | 16.0 | % | |||
Income taxes as a percentage of income before income taxes | (5.2 | )% | 11.7 | % | |||
Shareholders’ equity as a percentage of total assets | 58.8 | % | 53.8 | % | |||
Sales of lithography systems (in units) 1 | 48 | 57 | |||||
Value of booked systems (EUR millions) 2 | 1,399 | 3,085 | |||||
Net bookings lithography systems (in units) 1, 2 | 34 | 73 | |||||
Number of payroll employees in FTEs | 21,461 | 23,860 | |||||
Number of temporary employees in FTEs | 2,395 | 1,467 | |||||
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 High-NA systems).
ASML - Summary US GAAP Consolidated Balance Sheets
Dec 31, | Mar 29, | |||||
2019 | 2020 | |||||
(unaudited, in millions EUR) | ||||||
ASSETS | ||||||
Cash and cash equivalents | 3,532.3 | 2,723.7 | ||||
Short-term investments | 1,185.8 | 1,388.1 | ||||
Accounts receivable, net | 1,786.8 | 1,767.4 | ||||
Finance receivables, net | 564.5 | 748.7 | ||||
Current tax assets | 178.7 | 529.0 | ||||
Contract assets | 231.0 | 292.1 | ||||
Inventories, net | 3,809.2 | 4,345.3 | ||||
Other assets | 842.8 | 905.8 | ||||
Total current assets | 12,131.1 | 12,700.1 | ||||
Finance receivables, net | 421.1 | 340.8 | ||||
Deferred tax assets | 445.3 | 482.3 | ||||
Other assets | 830.4 | 902.3 | ||||
Equity method investments | 833.0 | 865.1 | ||||
Goodwill | 4,541.1 | 4,541.1 | ||||
Other intangible assets, net | 1,104.4 | 1,082.5 | ||||
Property, plant and equipment, net | 1,999.3 | 2,046.9 | ||||
Right-of-use assets - Operating | 205.4 | 197.1 | ||||
Right-of-use assets - Finance | 118.5 | 119.4 | ||||
Total non-current assets | 10,498.5 | 10,577.5 | ||||
Total assets | 22,629.6 | 23,277.6 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Total current liabilities | 4,694.1 | 4,677.4 | ||||
Long-term debt | 3,108.3 | 3,868.2 | ||||
Deferred and other tax liabilities | 234.4 | 262.7 | ||||
Contract liabilities | 1,759.6 | 1,702.6 | ||||
Accrued and other liabilities | 241.0 | 241.5 | ||||
Total non-current liabilities | 5,343.3 | 6,075.0 | ||||
Total liabilities | 10,037.4 | 10,752.4 | ||||
Total shareholders’ equity | 12,592.2 | 12,525.2 | ||||
Total liabilities and shareholders’ equity | 22,629.6 | 23,277.6 | ||||
ASML - Summary US GAAP Consolidated Statements of Cash Flows
Three months ended, | ||||||
Mar 31, | Mar 29, | |||||
2019 | 2020 | |||||
(unaudited, in millions EUR) | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | 355.4 | 390.6 | ||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and amortization | 104.8 | 118.3 | ||||
Impairment | 2.7 | 2.7 | ||||
Loss on disposal of property, plant and equipment | 0.6 | 1.0 | ||||
Share-based compensation expense | 14.9 | 14.9 | ||||
Allowance for obsolete inventory | 72.1 | 39.3 | ||||
Deferred income taxes | (76.5 | ) | (24.6 | ) | ||
Equity method investments | (17.0 | ) | (32.3 | ) | ||
Changes in assets and liabilities | (937.8 | ) | (1,115.7 | ) | ||
Net cash provided by (used in) operating activities | (480.8 | ) | (605.8 | ) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Purchase of property, plant and equipment | (147.0 | ) | (231.5 | ) | ||
Purchase of intangible assets | (86.7 | ) | (10.8 | ) | ||
Purchase of short-term investments | (288.1 | ) | (310.5 | ) | ||
Maturity of short-term investments | 179.4 | 108.2 | ||||
Repayment on loans | — | 0.3 | ||||
Net cash provided by (used in) investing activities | (342.4 | ) | (444.3 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Purchase of shares | (52.6 | ) | (507.5 | ) | ||
Net proceeds from issuance of shares | 5.2 | 8.6 | ||||
Net proceeds from issuance of notes, net of issuance costs | — | 739.8 | ||||
Repayment of debt | (0.7 | ) | (0.9 | ) | ||
Net cash provided by (used in) financing activities | (48.1 | ) | 240.0 | |||
Net cash flows | (871.3 | ) | (810.1 | ) | ||
Effect of changes in exchange rates on cash | 3.2 | 1.5 | ||||
Net increase (decrease) in cash and cash equivalents | (868.1 | ) | (808.6 | ) | ||
Cash and cash equivalents at beginning of the period | 3,121.1 | 3,532.3 | ||||
Cash and cash equivalents at end of the period | 2,253.0 | 2,723.7 | ||||
ASML - Quarterly Summary US GAAP Consolidated Statements of Operations
Three months ended, | |||||||||||||||
Mar 31, | June 30, | Sep 29, | Dec 31, | Mar 29, | |||||||||||
2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||
(unaudited, in millions EUR, except per share data) | |||||||||||||||
Net system sales | 1,689.0 | 1,850.8 | 2,325.6 | 3,130.7 | 1,584.0 | ||||||||||
Net service and field option sales | 540.1 | 717.1 | 660.9 | 905.7 | 856.6 | ||||||||||
Total net sales | 2,229.1 | 2,567.9 | 2,986.5 | 4,036.4 | 2,440.6 | ||||||||||
Total cost of sales | (1,301.1 | ) | (1,462.7 | ) | (1,680.1 | ) | (2,096.3 | ) | (1,339.2 | ) | |||||
Gross profit | 928.0 | 1,105.2 | 1,306.4 | 1,940.1 | 1,101.4 | ||||||||||
Research and development costs | (472.7 | ) | (487.4 | ) | (492.3 | ) | (516.1 | ) | (544.0 | ) | |||||
Selling, general and administrative costs | (121.0 | ) | (123.5 | ) | (128.5 | ) | (147.6 | ) | (130.7 | ) | |||||
Income from operations | 334.3 | 494.3 | 685.6 | 1,276.5 | 426.7 | ||||||||||
Interest and other, net | (7.9 | ) | (6.9 | ) | (5.4 | ) | (4.8 | ) | (11.4 | ) | |||||
Income before income taxes | 326.4 | 487.4 | 680.2 | 1,271.7 | 415.3 | ||||||||||
Benefit from (provision for) income taxes | 17.0 | (19.1 | ) | (65.0 | ) | (124.5 | ) | (48.5 | ) | ||||||
Income after income taxes | 343.4 | 468.3 | 615.2 | 1,147.2 | 366.8 | ||||||||||
Profit (loss) related to equity method investments | 12.0 | 7.7 | 11.6 | (13.1 | ) | 23.8 | |||||||||
Net income | 355.4 | 476.0 | 626.8 | 1,134.1 | 390.6 | ||||||||||
Basic net income per ordinary share | 0.84 | 1.13 | 1.49 | 2.70 | 0.93 | ||||||||||
Diluted net income per ordinary share | 0.84 | 1.13 | 1.49 | 2.69 | 0.93 | ||||||||||
Weighted average number of ordinary shares used in computing per share amounts (in millions): | |||||||||||||||
Basic | 421.1 | 421.1 | 420.9 | 420.1 | 419.0 | ||||||||||
Diluted | 422.5 | 421.8 | 421.7 | 421.1 | 419.7 | ||||||||||
ASML - Quarterly Summary Ratios and other data
Mar 31, | June 30, | Sep 29, | Dec 31, | Mar 29, | |||||||||||
2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||
(unaudited, in millions EUR, except otherwise indicated) | |||||||||||||||
Gross profit as a percentage of net sales | 41.6 | % | 43.0 | % | 43.7 | % | 48.1 | % | 45.1 | % | |||||
Income from operations as a percentage of net sales | 15.0 | % | 19.2 | % | 23.0 | % | 31.6 | % | 17.5 | % | |||||
Net income as a percentage of net sales | 15.9 | % | 18.5 | % | 21.0 | % | 28.1 | % | 16.0 | % | |||||
Income taxes as a percentage of income before income taxes | (5.2 | )% | 3.9 | % | 9.6 | % | 9.8 | % | 11.7 | % | |||||
Shareholders’ equity as a percentage of total assets | 58.8 | % | 57.6 | % | 58.3 | % | 55.6 | % | 53.8 | % | |||||
Sales of lithography systems (in units) 1 | 48 | 48 | 57 | 76 | 57 | ||||||||||
Value of booked systems (EUR millions) 2 | 1,399 | 2,828 | 5,111 | 2,402 | 3,085 | ||||||||||
Net bookings lithography systems (in units) 1, 2, 3 | 34 | 61 | 81 | 60 | 73 | ||||||||||
Number of payroll employees in FTEs | 21,461 | 22,125 | 22,805 | 23,219 | 23,860 | ||||||||||
Number of temporary employees in FTEs | 2,395 | 2,157 | 1,913 | 1,681 | 1,467 | ||||||||||
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 High-NA systems).
3 Our Q3 2019 systems net bookings include 1 DUV system shipped to collaborative Research Center (Imec) in Q3 2019. This system is not recognized in revenue.
ASML - Quarterly Summary US GAAP Consolidated Balance Sheets
Mar 31, | June 30, | Sep 29, | Dec 31, | Mar 29, | |||||||||||
2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||
(unaudited, in millions EUR) | |||||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | 2,253.0 | 1,661.1 | 1,586.1 | 3,532.3 | 2,723.7 | ||||||||||
Short-term investments | 1,022.1 | 673.5 | 483.8 | 1,185.8 | 1,388.1 | ||||||||||
Accounts receivable, net | 1,589.3 | 1,637.7 | 2,100.7 | 1,786.8 | 1,767.4 | ||||||||||
Finance receivables, net | 534.6 | 620.1 | 584.9 | 564.5 | 748.7 | ||||||||||
Current tax assets | 373.3 | 320.9 | 339.6 | 178.7 | 529.0 | ||||||||||
Contract assets | 103.5 | 190.4 | 287.8 | 231.0 | 292.1 | ||||||||||
Inventories, net | 3,764.8 | 3,914.1 | 3,895.0 | 3,809.2 | 4,345.3 | ||||||||||
Other assets | 755.7 | 877.5 | 816.2 | 842.8 | 905.8 | ||||||||||
Total current assets | 10,396.3 | 9,895.3 | 10,094.1 | 12,131.1 | 12,700.1 | ||||||||||
Finance receivables, net | 399.4 | 406.3 | 588.2 | 421.1 | 340.8 | ||||||||||
Deferred tax assets | 280.7 | 326.6 | 309.2 | 445.3 | 482.3 | ||||||||||
Other assets | 881.1 | 893.3 | 951.2 | 830.4 | 902.3 | ||||||||||
Equity method investments | 933.6 | 949.9 | 969.0 | 833.0 | 865.1 | ||||||||||
Goodwill | 4,541.1 | 4,541.1 | 4,541.1 | 4,541.1 | 4,541.1 | ||||||||||
Other intangible assets, net | 1,158.5 | 1,140.8 | 1,122.8 | 1,104.4 | 1,082.5 | ||||||||||
Property, plant and equipment, net | 1,621.8 | 1,669.8 | 1,817.9 | 1,999.3 | 2,046.9 | ||||||||||
Right-of-use assets - Operating | 148.1 | 154.8 | 227.2 | 205.4 | 197.1 | ||||||||||
Right-of-use assets - Finance | — | 56.0 | 78.5 | 118.5 | 119.4 | ||||||||||
Total non-current assets | 9,964.3 | 10,138.6 | 10,605.1 | 10,498.5 | 10,577.5 | ||||||||||
Total assets | 20,360.6 | 20,033.9 | 20,699.2 | 22,629.6 | 23,277.6 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Total current liabilities | 3,721.2 | 3,692.5 | 3,712.5 | 4,694.1 | 4,677.4 | ||||||||||
Long-term debt | 3,082.5 | 3,132.4 | 3,170.0 | 3,108.3 | 3,868.2 | ||||||||||
Deferred and other tax liabilities | 218.6 | 199.6 | 203.6 | 234.4 | 262.7 | ||||||||||
Contract liabilities | 1,190.0 | 1,280.2 | 1,276.5 | 1,759.6 | 1,702.6 | ||||||||||
Accrued and other liabilities | 182.6 | 183.9 | 265.5 | 241.0 | 241.5 | ||||||||||
Total non-current liabilities | 4,673.7 | 4,796.1 | 4,915.6 | 5,343.3 | 6,075.0 | ||||||||||
Total liabilities | 8,394.9 | 8,488.6 | 8,628.1 | 10,037.4 | 10,752.4 | ||||||||||
Total shareholders’ equity | 11,965.7 | 11,545.3 | 12,071.1 | 12,592.2 | 12,525.2 | ||||||||||
Total liabilities and shareholders’ equity | 20,360.6 | 20,033.9 | 20,699.2 | 22,629.6 | 23,277.6 | ||||||||||
ASML - Quarterly Summary US GAAP Consolidated Statements of Cash Flows
Three months ended, | |||||||||||||||
Mar 31, | June 30, | Sep 29, | Dec 31, | Mar 29, | |||||||||||
2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||
(unaudited, in millions EUR) | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net income | 355.4 | 476.0 | 626.8 | 1,134.1 | 390.6 | ||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||
Depreciation and amortization | 104.8 | 108.4 | 112.4 | 122.9 | 118.3 | ||||||||||
Impairment | 2.7 | — | 2.0 | — | 2.7 | ||||||||||
Loss on disposal of property, plant and equipment | 0.6 | 1.4 | 0.3 | 0.8 | 1.0 | ||||||||||
Share-based compensation expense | 14.9 | 12.5 | 18.0 | 29.2 | 14.9 | ||||||||||
Allowance for obsolete inventory | 72.1 | 49.1 | 46.1 | 54.2 | 39.3 | ||||||||||
Deferred income taxes | (76.5 | ) | (65.1 | ) | 22.5 | (80.9 | ) | (24.6 | ) | ||||||
Equity method investments | (17.0 | ) | (15.3 | ) | (18.6 | ) | 107.8 | (32.3 | ) | ||||||
Changes in assets and liabilities | (937.8 | ) | (467.5 | ) | (740.1 | ) | 2,220.2 | (1,115.7 | ) | ||||||
Net cash provided by (used in) operating activities | (480.8 | ) | 99.5 | 69.4 | 3,588.3 | (605.8 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Purchase of property, plant and equipment | (147.0 | ) | (128.3 | ) | (185.8 | ) | (305.5 | ) | (231.5 | ) | |||||
Purchase of intangible assets | (86.7 | ) | (11.7 | ) | (11.2 | ) | (9.7 | ) | (10.8 | ) | |||||
Purchase of short-term investments | (288.1 | ) | (0.7 | ) | (100.3 | ) | (902.4 | ) | (310.5 | ) | |||||
Maturity of short-term investments | 179.4 | 349.3 | 290.0 | 200.3 | 108.2 | ||||||||||
Repayment on loans | — | — | — | 0.9 | 0.3 | ||||||||||
Net cash provided by (used in) investing activities | (342.4 | ) | 208.6 | (7.3 | ) | (1,016.4 | ) | (444.3 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Dividend paid | — | (884.4 | ) | — | (441.3 | ) | — | ||||||||
Purchase of shares | (52.6 | ) | (17.4 | ) | (148.4 | ) | (191.6 | ) | (507.5 | ) | |||||
Net proceeds from issuance of shares | 5.2 | 7.4 | 7.4 | 7.2 | 8.6 | ||||||||||
Net proceeds from issuance of notes, net of issuance costs | — | — | — | — | 739.8 | ||||||||||
Repayment of debt | (0.7 | ) | (1.2 | ) | (1.0 | ) | (0.9 | ) | (0.9 | ) | |||||
Net cash provided by (used in) financing activities | (48.1 | ) | (895.6 | ) | (142.0 | ) | (626.6 | ) | 240.0 | ||||||
Net cash flows | (871.3 | ) | (587.5 | ) | (79.9 | ) | 1,945.3 | (810.1 | ) | ||||||
Effect of changes in exchange rates on cash | 3.2 | (4.4 | ) | 4.9 | 0.9 | 1.5 | |||||||||
Net increase (decrease) in cash and cash equivalents | (868.1 | ) | (591.9 | ) | (75.0 | ) | 1,946.2 | (808.6 | ) | ||||||
Cash and cash equivalents at beginning of the period | 3,121.1 | 2,253.0 | 1,661.1 | 1,586.1 | 3,532.3 | ||||||||||
Cash and cash equivalents at end of the period | 2,253.0 | 1,661.1 | 1,586.1 | 3,532.3 | 2,723.7 | ||||||||||
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 2019 Integrated 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, bookings, annual revenue opportunity in 2020 and through 2025 and long term growth opportunity, expected trends in end markets, expected technology industry and business environment trends, including the expected impact of the Covid-19 pandemic on ASML, expected revenue recognition of systems in Q2/Q3, demand outlook, shrink being a key industry driver supporting innovation and providing long-term industry growth, the expected continuation of Moore’s law and the expectation that EUV will enable continuation of Moore’s law and drive long term value for ASML well into this decade, and statements with respect to plans regarding dividends and share buybacks, including the dividend proposal in respect of 2019, the 2020-2022 share buyback program, including the plan to not make purchases in Q1 and the intention to continue to return excess cash to shareholders through a combination of share buybacks and growing annualized dividends. 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", 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 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, risks related to the Covid-19 virus on the global economy and financial markets, as well as on ASML and its customers and suppliers, the impact on ASML’s and its customers’ and suppliers’ operations and other risks relating to the Covid-19 virus and other factors that may impact ASML’s sales and gross margin, including customer demand and ASML’s ability to supply its products, the success of technology advances and the pace of new product development and customer acceptance of and demand for new products; 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; 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; changes in exchange and tax rates; available liquidity, 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 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 do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.