ASML Affirms 2020 Growth Opportunity

NEW YORK, United States, 31 October 2016 – ASML Holding NV (ASML) today confirms its view, first stated at the 2014 investor day, of an annual revenue opportunity of EUR 10 billion in 2020. The operational leverage in our business model is expected to lead to an opportunity in 2020 to increase the gross margin to around 50 percent and together with expected higher sales to a rise in earnings per share to more than 8 euros. The planned acquisition of Hermes Microvision Inc. (HMI) will provide additional opportunities for growth.

At ASML’s Investor Day today in New York City, executive management will lay out the key drivers, market opportunities and operational priorities that are expected to enable the company’s continued growth and value creation.

The event starts at 9:00 AM Eastern Time (2:00 PM Central European Time) and will be webcast live on www.asml.com.

About ASML

ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. We are a multinational company with over 70 locations in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 15,500 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.

Forward-Looking Statements

This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to annual revenue opportunity in 2020, expected opportunities for increases in gross margin, expected higher sales, expected opportunities for an increase in EPS in 2020, the growth opportunities created by ASML’s acquisition of HMI and the drivers, market opportunities and operational priorities that are expected to enable the ASML’s growth and value creation. 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” 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 the 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 principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases and timing of resumption of the share repurchase plan, 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. 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.

ZEISS and ASML Strengthen Partnership for Next Generation of EUV Lithography Due in Early 2020s

  • ASML buys 24.9% of ZEISS subsidiary Carl Zeiss SMT for EUR 1 billion in cash
  • Start of development of entirely new High NA optical system for the future generation of EUV
  • ASML supports Carl Zeiss SMT`s R&D and capex for approximately EUR 760 million over the next 6 years

VELDHOVEN, the Netherlands/OBERKOCHEN, Germany – 3 November 2016 – Netherlands-based ASML Holding NV, one of the world’s leading chip industry equipment providers, and Germany-based Carl Zeiss SMT, a business group of Carl Zeiss AG (ZEISS), have agreed to strengthen their long-standing and successful partnership in the semiconductor lithography business. The main objective of this agreement is to facilitate the development of the future generation of Extreme Ultraviolet (EUV) lithography systems due in the first few years of the next decade. This technology will enable the semiconductor industry to produce much higher performance microchips at lower costs.

ZEISS and ASML jointly announce today, that they have agreed on a 24.9% minority stake of ASML in ZEISS’s subsidiary Carl Zeiss SMT, for which ASML will pay ZEISS EUR 1 billion in cash. The companies stated that no further exchange of shares is planned or agreed.

ASML is a key supplier of semiconductor patterning products and services used by the world`s top producers of microchips. With its high-performance optics Carl Zeiss SMT supplies an essential subsystem of ASML´s semiconductor lithography scanners and is ASML`s most important strategic partner. ASML and Carl Zeiss SMT have been in close partnership for more than 30 years. Both firms have grown strongly over the last decades benefiting from each other`s strengths.

A new cycle of investments required for the development of an entirely new optical system for the future generation of EUV, expected to be provided to the chip making industry in the first few years of the next decade, has triggered the partners to take a further step in the collaboration.

“In 2018 the first chips made on current technology EUV scanners are expected to roll off the production lines of our customers. A lot of work is still being done to ensure the introduction of EUV in volume manufacturing, in tight conjunction with our highly successful immersion scanners which we continue to improve. Yet ASML and ZEISS are looking beyond this important milestone. We see a long and successful future for EUV lithography in advanced chip manufacturing and with this agreement we set the right conditions for development of the next generation of EUV by ASML and Carl Zeiss SMT, so that our customers can reap the rewards of their EUV investments up to the end of the next decade,” said Peter Wennink, President and Chief Executive Officer of ASML.

“With this agreement we clear the road for advanced lithography to support the new concepts and designs for future generations of advanced chips. After the many years of fruitful partnership, we see this agreement as a further strong endorsement of our long term cooperation which allows us to further expand our joint leadership that we have already accomplished together”, says Michael Kaschke, President and CEO of ZEISS.

The next generation of EUV optics will offer a higher numerical aperture (NA), making it possible to further reduce critical dimensions in the lithography process. The current EUV systems have an optical system with NA of 0.33 whereas the new optics will have NA larger than 0.5, enabling several generations of geometric chip scaling.

In addition to the agreement of the minority interest, the two companies have also agreed that ASML will support Carl Zeiss SMT`s research and development (R&D) for approximately EUR 220 million as well as capital expenditures and other supply chain investments for approximately EUR 540 million over the next 6 years.

These investments will predominantly be allocated at Carl Zeiss SMT’s main location in Oberkochen, Germany, and will primarily be used for capacity and resource expansions, with positive effects on long-term employment at this location. Carl Zeiss SMT will remain fully integrated into the structure of the ZEISS Group as one of the major and important business groups.

“High-NA is the logical next step for EUV, as it circumvents complex and expensive 0.33 NA EUV multiple patterning. High-NA EUV is a robust way for chips to scale all the way down to the sub-3 nanometer logic node in a single exposure with high productivity and reduced cost per feature. That is several generations from where we are today and underlines our commitment to propel Moore’s law,” said Martin van den Brink, President and Chief Technology Officer at ASML.

Carl Zeiss SMT will pay an annual dividend to its shareholders Carl Zeiss AG and ASML. ASML expects that the minority share transaction will be accretive to its earnings before adjustments related to purchase price accounting and differences in accounting standards. Furthermore, ASML`s contribution to Carl Zeiss SMT`s R&D and capital expenditures will be taken into account in the future pricing of SMT`s next generation EUV optics to ASML.

The transaction has been approved by both companies’ supervisory boards. ASML will fund the transaction from available cash, potentially supplemented by new debt. The transaction is subject to regulatory clearance and is expected to be closed in the second quarter of 2017.

Update ASML Share Buyback Program

In light of the investments by ASML announced today, ASML will prolong the pause of its share buy back program for the time being. As a result, the 2016-2017 program may not be completed for the full amount. Otherwise, the current program will remain in place, yet it may be further suspended, modified or discontinued at any time. As part of ASML’s financial policy to return excess cash to shareholders through dividends and regularly timed share buyback programs, ASML in January 2016 announced its intention to purchase up to EUR 1.5 billion of shares to be executed within the 2016-2017 time frame.

About Moore`s law

The phenomenal growth of the semiconductor industry has been driven by Moore’s Law, named after Intel co-founder Gordon Moore. In 1965, Moore observed that the number of components on a chip that could be manufactured at optimum cost had doubled every year. He predicted that this trend would continue. It was an empirical observation, not a law of nature. In the five decades that followed, the “law” has been rewritten several times, but the principle continues: chip makers cram more transistors on ICs with every new generation, making computing power and storage capacity cheaper year after year. Today’s consumers carry more computing power in their pockets than a multi-million-dollar supercomputer could deliver in the 1970s. Moore’s Law has inspired generations of engineers to push technology forward.

About ASML

ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. We are a multinational company with over 70 locations in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 15,500 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.

About ZEISS and Carl Zeiss SMT

ZEISS is an internationally leading technology enterprise operating in the optics and optoelectronics industries. The ZEISS Group develops and distributes semiconductor manufacturing equipment, measuring technology, microscopes, medical technology, eyeglass lenses, camera and cine lenses, binoculars and planetarium technology. With its solutions, the company constantly advances the world of optics and helps shape technological progress. ZEISS is divided up into the four segments Semiconductor Manufacturing Technology, Research & Quality Technology, Medical Technology, and Vision Care/Consumer Optics. ZEISS is represented in over 40 countries and operates more than 30 production sites, over 50 sales and service locations and about 25 research and development facilities. In fiscal year 2015/16 the company generated revenue of over EUR 4.8 billion with around 25,000 employees. Founded in 1846 in Jena, the company is headquartered in Oberkochen, Germany. Carl Zeiss AG is the strategic management holding company that manages the ZEISS Group. The company is wholly owned by the Carl Zeiss Stiftung (Carl Zeiss Foundation).
Further information at www.zeiss.com

Regulated Information

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Forward Looking Statements

This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to our outlook, including statements about the partnership between ASML and Carl Zeiss SMT, the transactions between ASML and ZEISS discussed herein, including the expected capex and R&Dother investments by ASML, and expected benefits of these transactions, statements with respect to the planned investments by ASML in Carl Zeiss SMT including allocation and use of these investments and expected benefits,, statements about EUV including expected development of EUV and the expected timing of the next generation of EUV systems, new investments required in optical systems to continue EUV development, expected timing for the first chips to be produced by ASML’s customers using EUV, and expected volume manufacturing using EUV and expected timing thereof and expected long and successful future of EUV lithography and expected future investments in EUV, , that customers can reap the rewards of these EUV investments up to the end of the next decade and that the agreement discussed in this release will clear the road for advanced lithography to support new concepts and designs for future generations of advanced ships, the expected NA and other features of next generation EUV products, statements with respect to Moore’s law and the expectation that this transaction will help fuel the development of Moore’s law, statements with respect to Carl Zeiss SMT, including expected dividends and that the transaction will be accretive to earnings, statements with respect to the relationship between ASML and Carl Zeiss SMT and expected benefits thereof , expected closing of the transaction [and expected funding of the transaction by ASML], and other non-historic 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” 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 the 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 principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of EUV, delays in EUV systems production and development, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, the completion of the acquisition by ASML of the 24.9% stake in Carl Zeiss SMT and the performance of Carl Zeiss SMT including dividends paid in the future by Carl Zeiss SMT, the amount of investments and capex required by Carl Zeiss SMT under the arrangements described herein and the performance of the products produced by Carl Zeiss SMT 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. 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.

ASML Completes Acquisition of HMI

VELDHOVEN, the Netherlands, 22 November 2016 – ASML Holding NV (ASML) and Hermes Microvision, Inc. (HMI) announce today that they have completed the previously announced transaction pursuant to which ASML has acquired all outstanding shares of HMI.

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. We are a multinational company with over 70 locations in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 16,000 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.

ASML Successfully Places Eurobond Offering for EUR 750 Million

VELDHOVEN, the Netherlands, 23 November 2016 – ASML Holding N.V. (ASML) today announces that it has successfully placed a Eurobond offering for an amount of EUR 750 million Senior Notes. The transaction is expected to settle on 30 November 2016.

ASML expects to use the net proceeds from this offering to fund acquisitions, including the partial funding of the acquisition of a minority interest in Carl Zeiss SMT, for capital structure optimization, including for share buybacks under its existing program, and/or for general corporate purposes.

The Senior Notes are due in 2027 and have an issue price of 99.678 percent and a coupon of 1.625 percent.

The bond discussed in this press release has not been, and will not be registered under the U.S. Securities Act 1933, and may not be offered or sold in the United States absent registration or an exemption from registration thereunder.

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. We are a multinational company with over 70 locations in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 16,000 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.

ASML Reports Record Full-Year 2016 Net Sales and Net Income – Orders for EUV Lithography Systems Show Strong Customer Commitment for Production Insertion

VELDHOVEN, the Netherlands, January 18, 2017 – ASML Holding N.V. (ASML) today publishes its 2016 fourth-quarter and full-year results.

  • Q4 net sales of EUR 1.91 billion, gross margin 47.2 percent, including the effects of purchase price allocation for the HMI acquisition, which closed as planned in Q4
  • Full-year net sales EUR 6.79 billion, gross margin 44.8 percent, net income EUR 1.47 billion
  • ASML proposes a dividend of EUR 1.20 per share, a 14 percent increase from the previous year
  • ASML took orders for six NXE:3400 Extreme Ultraviolet (EUV) systems in the fourth quarter, bringing the EUV backlog to 18 systems for a value of around EUR 2 billion
  • ASML guides Q1 2017 net sales approximately EUR 1.8 billion and a gross margin around 47 percent
(Figures in millions of euros unless otherwise indicated) Q3 2016 Q4 2016 FY 2015 FY 2016
Net sales 1,815 1,907 6,287 6,795
…of which service and field option sales 577 684 2,050 2,224
         
Other income (Co-Investment Program) 23 23 83 94
         
New systems sold (units) 38 34 144 139
Used systems sold (units) 2 4 25 18
Average Selling Price (ASP) of net system sales 31.0 32.2 25.1 29.1
         
Net bookings 1,415 1,580 4,639 5,396
Systems backlog 3,462 3,961 3,184 3,961
         
Gross profit 834 901 2,896 3,044
Gross margin (%) 46.0 47.2 46.1 44.8
         
Net income 396 524 1,387 1,472
EPS (basic; in euros) 0.93 1.23 3.22 3.46
         
End-quarter cash and cash equivalents and short-term investments 4,313 4,057 3,409 4,057

A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com

CEO Statement
“2016 has been a remarkable year for ASML on many fronts. We delivered record financial performance, with contributions from each of our wide range of product offerings, notably Deep Ultraviolet (DUV) and Holistic Lithography. It was also the year when the industry turned the corner on the introduction of EUV. We laid the foundation for further expansion of our pattern fidelity strategy with the acquisition of Hermes Microvision Inc. We strengthened our partnership with Zeiss by agreeing to acquire a minority stake in Carl Zeiss SMT to secure the extension of EUV beyond the next decade. All of this has further anchored our leadership position in the semiconductor equipment market,” ASML President and Chief Executive Officer Peter Wennink said.

“Logic chip manufacturers have built up capacity for the 10 nanometer node in 2016, and we also saw healthy demand from memory manufacturers both for DRAM and 3D NAND production. Together with solid growth in net service and field option sales, this has led to record 2016 net sales of EUR 6.8 billion. These trends are expected to continue into 2017, as evidenced by our first-quarter guidance.

“Regarding EUV, we executed on the customer-aligned productivity and availability targets, which gave customers the confidence to place a significant number of orders, leading to an EUV backlog of about EUR 2 billion. These orders show that they are committed to take EUV into production, and we expect that the first customers will start volume manufacturing with EUV at the 7 nanometer logic node and the mid-10 nanometer DRAM node. We are now moving to the next phase of EUV industrialization. We remain committed to deliver the performance requirements for customer volume manufacturing, while continuing to build up our manufacturing, supply chain and service capabilities,” Wennink said.

Product and Business Highlights

  • In DUV lithography, we shipped 15 TWINSCAN NXT:1980 systems in the quarter, supporting the ramp of the 10 nanometer node as well as process development for the 7 nanometer foundry node. With the introduction of the NXT:1980, we have shortened the time to maturity, enabling a faster, more cost-effective node ramp. More customers are now recognizing the value of upgrading their existing NXT systems to the latest performance, which has supported our field upgrade sales. We also continue to support our XT and NXT systems with productivity upgrades and as part of the transition from planar to 3D NAND, we have supported a large additional number of system relocations, helping customers to optimize their ramp plans.
  • In Holistic Lithography, we successfully completed the acquisition of Hermes Microvision Inc. (HMI) and began the integration of HMI’s e-beam systems into our Holistic Lithography portfolio.
  • In EUV lithography, we took orders for six TWINSCAN NXE:3400 systems in the fourth quarter. Our backlog now includes 18 EUV systems, worth almost EUR 2 billion, or about half of the total backlog.

Outlook
For the first-quarter of 2017, ASML expects net sales at approximately EUR 1.8 billion, a gross margin of around 47 percent, R&D costs of about EUR 320 million, other income of about EUR 23 million — which consists of contributions from participants of the Customer Co-Investment Program, SG&A costs of about EUR 95 million and an effective annualized tax rate between 13 and 14 percent.

Dividend Proposal
ASML will submit a proposal to the 2017 Annual General Meeting of Shareholders to declare a dividend in respect of 2016 of EUR 1.20 per ordinary share (for a total amount of approximately EUR 515 million), compared with a dividend of EUR 1.05 per ordinary share paid in respect of 2015.

Update Share Buyback Program
As part of ASML’s financial policy to return excess cash to shareholders through dividends and regularly timed share buyback programs, ASML in January 2016 announced its intention to purchase up to EUR 1.5 billion of shares to be executed within the 2016-2017 time frame. ASML intends to cancel the shares upon repurchase.

Through December 31, 2016, ASML has acquired 4.8 million shares under this program for a total consideration of EUR 400 million.

As announced on November 3, 2016, the share buyback program is currently paused. As a result, the 2016–2017 program may not be completed for the full amount. Otherwise, the current program will remain in place, yet it may be further suspended, modified or discontinued at any time. Any transactions under this program will be published on ASML’s website (www.asml.com/investors) on a weekly basis.

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. ASML is a multinational company with offices in 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 16,500 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.

Press Conference and Investor Conference Call
CEO Peter Wennink and CFO Wolfgang Nickl will host a press conference at 11:00 AM Central European Time, which will be webcast live on www.asml.com.

A conference call for investors and media will be hosted by CEO Peter Wennink and CFO Wolfgang Nickl at 15:00 PM Central European Time / 09:00 AM U.S. Eastern time. To register for the call and receive dial-in information, go to www.asml.com/qresultscall. Listen-only access is also available via www.asml.com.

2016 Annual Reports
ASML will publish its 2016 Integrated Report, Annual Report on Form 20-F and Statutory Annual Report on February 8, 2017. The reports will be published on our website at www.asml.com.

US GAAP and IFRS 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, and a reconciliation of net income from US GAAP to IFRS as adopted by the EU (‘IFRS’) are available on www.asml.com.

In addition to reporting financial figures in accordance with US GAAP, ASML also reports financial figures in accordance with IFRS for statutory purposes. The most significant differences between US GAAP and IFRS that affect ASML concern the capitalization of certain product development costs and the accounting of income taxes. ASML’s quarterly IFRS consolidated statement of profit or loss, consolidated statement of cash flows, consolidated statement of financial position and a reconciliation of net income from US GAAP to IFRS are available on www.asml.com.

The consolidated balance sheets of ASML Holding N.V. as of December 31, 2016, the related consolidated statements of operations and consolidated statements of cash flows for the quarter ended December 31, 2016 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.

Forward Looking Statements
This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to expected trends and outlook, including expected customer insertion of EUV in volume manufacturing, including expected volume orders, systems backlog, expected financial results and trends for the first quarter of 2017, including expected sales, other income, gross margin, R&D and SG&A expenses and effective annualized tax rate, annual revenue opportunity for ASML and EPS potential by 2020, including further growth potential into the next decade, expected industry trends and expected trends in the business environment, statements with respect to the proposed minority stake in Carl Zeiss SMT, including statements that such investment will secure the extension of EUV beyond the next decade and funding for next generation EUV technology, statements with respect to EUV targets, manufacturing, supply chain and service capabilities, and ASML’s commitment to secure system performance, shipments and support for volume manufacturing, including availability, productivity, throughput and shipments, including timing of shipments and the ability to support a larger installed base, shrink being a key driver supporting innovation and providing long-term industry growth, lithography enabling affordable shrink and delivering value to customers, expected industry adoption of EUV and statements with respect to the intent of customers to insert EUV into production, the extension of EUV beyond the next decade, the expected continuation of Moore’s law and that EUV will continue to enable Moore’s law and drive long term value, intention to return excess cash to shareholders, and statements about our proposed dividend, dividend policy and intention to repurchase shares and statements with respect to the share repurchase plan. 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”, “targets”, “commits to secure” 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 the 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 principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development and volume production by customers, including meeting development requirements for volume production, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases and timing of resumption of the share repurchase plan, 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. 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.

ASML Publishes 2016 Annual Reports

VELDHOVEN, the Netherlands, February 8, 2017 – ASML Holding N.V. (ASML) today publishes its 2016 Integrated Report. ASML will also file its 2016 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC), and will file its 2016 Statutory Annual Report, including its Remuneration Report, with the Dutch Authority for the Financial Markets (AFM).

ASML’s Integrated Report, Annual Report on Form 20-F and Statutory Annual Report are available at www.asml.com/annualreport2016, where also our financial statements can be downloaded in the Excel spreadsheet format. ASML’s annual reports will also be available at www.sec.gov.

ASML will hold its Annual General Meeting of Shareholders (AGM) on April 26, 2017 and the AGM agenda with all related documents will be available online at www.asml.com/agm2017 on March 9, 2017.

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. ASML is a multinational company with offices in 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 16,500 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.

ASML Extends Holistic Patterning Strategy with Cadence Partnership

San Jose, California, 28 February 2017 – ASML Holding NV (ASML) today announced a partnership with Cadence Design Systems, Inc. to expand the capabilities of its holistic lithography product portfolio, further streamlining chipmakers’ process flow from design to mask production. The collaboration will bring together ASML’s computational lithography solutions and the Cadence physical design back-end tools, leading to enhanced Design Technology Co-Optimization (DTCO) capabilities for advanced nodes, and other technologies.

“In the face of shrinking process nodes, engineers are increasingly relying on designer-friendly, production-accurate manufacturability checks throughout the design phase to realize tighter imaging performance and cycle time goals,” said Dr. Anirudh Devgan, senior vice president and general manager of the Digital & Signoff Group and the System & Verification Group at Cadence. “Together with ASML, we are now able to efficiently bridge the gap between design and manufacturing, empowering our customers to take better control of their design intent, reliability and yield through improved lithography awareness capabilities.”

As part of its holistic lithography approach, ASML has developed powerful lithography and patterning models that can simulate how a chip design is realized in silicon, representing the actual manufacturing processes. The integration of these design models into Cadence products enables DTCO to deliver optimal design scaling while securing manufacturability and yield.

As the first result of their collaboration, the newly released Cadence® LPA PLUS enables engineers to simulate the manufacturability of their design at any time during implementation and signoff, enabling more efficient delivery of high-quality designs.

ASML’s partnership with Cadence represents another major step toward realizing a full end-to-end design-to-mask process flow. When combined with an earlier partnership with NCS, engineers can now leverage litho-aware design and mask data preparation on a seamlessly integrated platform.

“Since ASML’s early days, we’ve developed our systems in a cooperative network of partners, a practice we call Open Innovation,” said Christophe Fouquet, Executive Vice President of Applications at ASML. “This enables us to remain focused on developing our core holistic lithography technology leadership in modeling, scanner imaging and patterning process control, while leveraging our partnerships to deliver improved cycle time and productivity along the whole value chain from design technology development to production implementation of the physical design, mask design, and mask data preparation.”

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. ASML is a multinational company with offices in 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 16,500 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.

Forward Looking Statements
This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect our partnership with Cadence Design Systems, Inc. and our intention to collaborate with Cadence on various holistic lithography initiatives, the benefits of our partnership with Cadence in respect of our holistic lithography product portfolio, and the further development and enhancement of holistic lithography products and tools. 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” 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 the 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, the possibility that our partnership with Cadence fails to become successful or that it may not benefit our holistic lithography product portfolio as anticipated, 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 general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, performance of our systems, the continuing success of technology advances and the related pace of new product development, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, trade environment 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. These forward-looking statements are made only as of the date of this document. ASML does not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Stronger Than Expected Demand Drives ASML Q1 Sales – Positive Momentum Expected to Continue Throughout 2017

VELDHOVEN, the Netherlands, April 19, 2017 – ASML Holding N.V. (ASML) today publishes its 2017 first-quarter results.

  • Q1 net sales of EUR 1.94 billion, gross margin 47.6 percent
  • EUV backlog grows to 21 systems valued at EUR 2.3 billion
  • ASML expects Q2 2017 net sales between EUR 1.9 and 2.0 billion and a gross margin between 43 and 44 percent

(Figures in millions of euros unless otherwise indicated)

Q4 2016

Q1 2017

Net sales

1,907

1,944

…of which service and field option sales1

618

728

Other income (Co-Investment Program)

23

24

Net bookings 2

1,580

1,894

Systems backlog 2

3,961

4,509

Gross profit

901

925

Gross margin (%)

47.2

47.6

Net income

524

452

EPS (basic; in euros)

1.23

1.05

End-quarter cash and cash equivalents and short-term investments

4,057

3,836

1As per January 1, 2017, ASML presents net sales with respect to metrology and inspection systems as part of Net system sales instead of Net service and field option sales. The comparative numbers have been adjusted to reflect this change in accounting policy.

2Our systems backlog and net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting with the NXE:3350B). As per January 1, 2017 our systems backlog and net bookings also include metrology and inspection systems.

A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com

CEO Statement
“A positive industry environment provided a strong start to 2017 and healthy demand is expected to continue throughout the rest of the year. Our DUV business saw strong demand from all sectors of the industry. Our service and options business was also very strong in the first quarter, as a number of customers bought performance-enhancing upgrades for their existing immersion tools. Our second-quarter guidance shows that we expect these trends continue,” ASML President and Chief Executive Officer Peter Wennink said.

“In EUV, which is now in a phase of industrialization, the order flow continued, taking our backlog to 21 EUV systems.”

Product and Business Highlights

  • In DUV lithography, we continued to ship TWINSCAN NXT:1980 systems for memory, the ramp of the 10 nanometer logic node as well as process development for the 7 nanometer foundry node, bringing the installed base to more than 60 systems. Several customers had their previous-generation NXT systems upgraded in the quarter, with some taking selective productivity or overlay/focus upgrades and others choosing for a full upgrade to NXT:1980 performance. One system with a productivity upgrade processed more than 5,700 wafers in a single day at a memory customer, setting a new record for an NXT system. We boosted the productivity of our XT:860 KrF system further to 250 wafers per hour. Two customers have received upgrades to their existing XT:860 tools, realizing that performance. For our customers in 3D NAND, we released new options that improve focus and alignment performance on the high-topography layers typical for this application.
  • In Holistic Lithography, we formed a partnership with Cadence Design Systems to integrate ASML lithography and patterning simulation models into Cadence products, which will allow chip designers to perform manufacturability checks in the design phase to achieve better performance and shorter cycle times.
  • In EUV lithography, we started shipping the first NXE:3400B system late in the first quarter and completed shipment early in the second quarter.

Outlook
For the second-quarter of 2017, ASML expects net sales between EUR 1.9 and 2.0 billion which includes approximately EUR 200 million EUV revenue, a gross margin between 43 and 44 percent, R&D costs of about EUR 315 million, other income of about EUR 24 million — which consists of contributions from participants of the Customer Co- Investment Program, SG&A costs of about EUR 100 million and an effective annualized tax rate between 13 and 14 percent. We expect three NXE:3400B shipments in the second-quarter of 2017.

Dividend Proposal
ASML has submitted a proposal to the 2017 Annual General Meeting of Shareholders, which takes place on April 26, 2017, to declare a dividend in respect of 2016 of EUR 1.20 per ordinary share (for a total amount of approximately EUR 515 million), compared with a dividend of EUR 1.05 per ordinary share paid in respect of 2015.

Update Share Buyback Program As part of ASML’s financial policy to return excess cash to shareholders through dividends and regularly timed share buyback programs, ASML in January 2016 announced its intention to purchase up to EUR 1.5 billion of shares to be executed within the 2016-2017 time frame. ASML intends to cancel the shares upon repurchase.

As announced on November 3, 2016, the share buyback program is currently paused. As a result, the 2016–2017 program may not be completed for the full amount. The current program remains in place, yet it may be further suspended, modified or discontinued at any time. Any transactions under this program will be published on ASML’s website (www.asml.com/investors) on a weekly basis.

Media Relations Contacts

Investor Relations Contacts

Monique Mols, phone +31 6 5284 4418
Niclas Mika, phone +31 6 201 528 63

Craig DeYoung, phone +1 480 696 2762
Marcel Kemp, phone +31 40 268 6494

Investor and Media Conference Call
A conference call for investors and media will be hosted by CEO Peter Wennink and CFO Wolfgang Nickl at 15:00 Central European Time / 09:00 AM U.S. Eastern time. To register for the call and receive dial-in information, go to www.asml.com/qresultscall. Listen-only access is also available via www.asml.com.

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. ASML is a multinational company with offices in 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 17,000 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 and IFRS 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, and a reconciliation of net income from US GAAP to IFRS as adopted by the EU (‘IFRS’) are available on www.asml.com.

In addition to reporting financial figures in accordance with US GAAP, ASML also reports financial figures in accordance with IFRS for statutory purposes. The most significant differences between US GAAP and IFRS that affect ASML concern the capitalization of certain product development costs and the accounting of income taxes. ASML’s quarterly IFRS consolidated statement of profit or loss, consolidated statement of cash flows, consolidated statement of financial position and a reconciliation of net income from US GAAP to IFRS are available on www.asml.com.

The consolidated balance sheets of ASML Holding N.V. as of April 2, 2017, the related consolidated statements of operations and consolidated statements of cash flows for the quarter ended April 2, 2017 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.

Forward Looking Statements
This document contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to expected trends and outlook, including expected customer insertion of EUV in volume manufacturing, including expected volume orders, systems backlog, expected financial results and trends for the second quarter of 2017, including expected sales, other income, gross margin, R&D and SG&A expenses, and effective annualized tax rate, annual revenue opportunity for ASML and EPS potential by 2020 with significant further growth potential into the next decade, including further growth potential into the next decade, expected industry trends and expected trends in the business environment, including our expectation that the trends exhibited in the first quarter of 2017 will continue in the second quarter of 2017 and our expectation of healthy demand through the end of 2017, statements with respect to EUV targets, manufacturing, supply chain and service capabilities, and ASML’s commitment to secure system performance, shipments and support for volume manufacturing, including availability, productivity, throughput and shipments, including timing of shipments and the ability to support a larger installed base, shrink being a key driver supporting innovation and providing long-term industry growth, lithography enabling affordable shrink and delivering value to customers, expected industry adoption of EUV and statements with respect to the intent of customers to insert EUV into production, the extension of EUV beyond the next decade, the expected continuation of Moore’s law and that EUV will continue to enable Moore’s law and drive long term value for ASML beyond the next decade, intention to return excess cash to shareholders, and statements about our proposed dividend, dividend policy and intention to repurchase shares and statements with respect to the share repurchase plan. 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”, “targets”, “commits to secure” 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 the 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 principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, delays in EUV systems production and development and volume production by customers, including meeting development requirements for volume production, that demand for EUV systems being sufficient to result in utilization of EUV facilities in which ASML has made significant investments, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases and timing of resumption of the share repurchase plan, 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. These forwardlooking 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.

ASML Expresses Disappointment That Nikon Has Opted for Unnecessary and Unfounded Legal Action Over Patents

  • ASML believes Nikon’s claims are without merit and will defend itself vigorously
  • This sort of unnecessary patent litigation distracts from driving technology forward for the benefit of chip makers
  • ASML has made repeated efforts to negotiate an extension of its patent cross-license agreement with Nikon
  • Nikon has not engaged seriously with ASML and has instead chosen to commence legal proceedings

VELDHOVEN, the Netherlands, 24 April 2017 – ASML Holding NV (ASML) notes the announcement by Nikon that Nikon has filed a legal claim for alleged patent infringement against ASML in three countries. ASML has not yet received a notification of a legal action and categorically denies any infringement allegations.

ASML believes that Nikon’s claim is without merit. We will defend ourselves vigorously against the allegations and we will consider all means at our disposal.

As disclosed in further detail in our annual report and on Form 20-F, ASML and Nikon in 2004 concluded a patent cross-license agreement. Some patents were perpetually licensed; for others, the license period ended on 31 December 2009. A transitional period, during which the parties had agreed not to bring suit, ended on 31 December 2014.

Peter Wennink, ASML President and Chief Executive Officer, said: “Nikon’s litigation is unfounded, unnecessary and creates uncertainty for the semiconductor industry. Over the past years, ASML has made repeated attempts to negotiate an extension of its cross-license agreement with Nikon. We are disappointed that Nikon did not make any serious efforts to negotiate and has opted for legal action instead. We continue to believe that a negotiated outcome would have been preferable for the industry, which thrives on innovation and collaboration. This sort of unnecessary patent litigation distracts from what is truly important: driving technology forward for the benefit of chip makers. We should compete in the marketplace and not in court.”

About ASML
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML’s guiding principle is continuing Moore’s Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. ASML is a multinational company with offices in 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 17,000 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.

Media Relations Contacts
Netherlands: Lucas van Grinsven +31 6 1019 9532, Monique Mols +31 6 5284 4418, Niclas Mika +31 6 201 528 63
United Kingdom (Brunswick): Chris Blundell, Ambre Tanty-Lamothe +44 207 404 5959
Germany (Brunswick): Oliver Thompson +49 69 2400 5539
United States (ASML): Brittney Wolff-Zatezalo +1 408 483 3207
United States (Brunswick): Eric Savitz +1 415 671 7676
China (Brunswick): Ziya Yang +86 10 5960 8623
Taiwan (ASML): Karen Lo +88636236639
Taiwan (Brunswick): Teresa Li +852 3512 5043
Japan (Pathfind): Hiryoyuki Sera +81-3-6721-5095, sera@pathfind.co.jp
South Korea (ASML): Jay Kim +82 10 8972 0633
South Korea (Signature): Nuri Hwang +82 2 364 7001, nuri@thesignature.co.kr

Brunswick can also be contacted at ASML@brunswickgroup.com

Investor Relations Contacts
United States: Craig DeYoung, +1 480 696 2762
Netherlands: Marcel Kemp, +31 40 268 6494

Regulated Information
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Forward Looking Statements
This press release contains forward looking statements, including statements relating to Nikon’s actions against us, our view of the claims and plan to respond and the potential impact on the semiconductor industry and statements with respect to Moore’s law. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections and you should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. Potential adverse outcomes of patent litigation may include, without limitation, payment of significant monetary damages, injunctive relief prohibiting the sale of products, and/or settlement involving significant costs, any of which may have a material adverse effect on our business, financial condition and/or results of operations. In addition, defending against any such claim could result in substantial legal fees and could divert the attention of key management and technical personnel and we are unable to predict the outcome of this action/claim at this time. Other risks and uncertainties include, without limitation, 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. 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.

Former New York Resident Pleads Guilty to Filing Fraudulent Tax Returns

A former resident of Poughkeepsie, New York, pleaded guilty today in U.S. District Court in the Southern District of New York to filing fraudulent tax returns for others and for himself, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joon H. Kim for the Southern District of New York.

“Just about a week ago, many Americans did their civic duty and sent off their returns to the IRS, enclosing checks for taxes duly owed,” said Acting Deputy Assistant Attorney General Goldberg. “They have the right to expect that those like Damyon Shuler who threaten the integrity of the tax system by preparing fraudulent returns and submitting false refund claims will be fully prosecuted.”

“Damyon Shuler stole from the U.S. Treasury by preparing and filing false tax returns,” said Acting U.S. Attorney Kim. “We thank our partners at the Justice Department’s Tax Division and IRS Criminal Investigations for their work in bringing Shuler’s crimes to light.”

“People who create and promote fraudulent tax schemes against the United States, will be held accountable,” said Special Agent in Charge James D. Robnett of the IRS-CI New York Field Office. Today’s guilty plea by Mr. Shuler again emphasizes that IRS-Criminal Investigation will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”

According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:

Damyon Shuler, 47, pleaded guilty to filing his own fraudulent tax return and filing a fraudulent return on behalf of another taxpayer. Between February 2010 and March 2011, Shuler approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the IRS, for which he charged a $4,000 to $5,000 fee. Shuler then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return. To generate the fraudulent refunds, Shuler reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, Shuler did not list himself as the preparer. Shuler also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, Shuler’s fraudulent refund scheme led to losses of more than $1.2 million.

Sentencing is scheduled for Sept. 14. Shuler faces a statutory maximum sentence of three years in prison for each count of filing a fraudulent return, a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kim praised the outstanding work of special agents of IRS–CI, who conducted the investigation, and Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.