Creating a

New Global Innovator

Srinivas Tirumala GFP&A, Applied Materials

FP&A for High-Tech Summit April 8th, 2014

Introduction

Merger Background

Financial Model

Integration planning Topics

Summary

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Global Proliferation of Modern Devices

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Advanced Transistors Enable Newer Devices

Devices push boundary on performance & power consumption

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Moore’s Law

Performance goes up! 100,000

Cost goes down

10,000

1,000

100

Frequency (MHz)

10

2000 2012

1 1980 1985 1990 1995 2000 2005 2010 2015

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Ponder this

You hold technology in your hands more powerful than a Cray-2 Supercomputer and it doesn’t burn your hand!

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Industry Dynamics

Ever increasing demand for computing and mobility

Moore's Law drives smaller, faster, and cheaper

devices consuming lower power

Focus on technological innovation and cost

reductions while improving performance

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Applied Materials

Applied Materials, Inc. is the global leader in providing

innovative equipment, services and software to enable the manufacture of advanced

semiconductor, flat panel display and solar

photovoltaic products. Our technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to

consumers and businesses around the world.

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Competitive Landscape*

Applied Materials 18%

ASML 16%

Tokyo Electron Limited 13%

9% Lam Research

KLA-Tencor 8%

Dainippon Screen Manufacturing 5%

Hitachi High-Technology 3%

Nikon 3%

Hitachi Kokusai Electric 2%

Murata Machinery 1%

Others 30%

*Source: 2012 Gartner Rankings

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th Sept 24 2013 Announcement

Applied Materials and combining in a merger of equals

Creates a new global innovator in Precision Materials Engineering and Patterning

All stock transaction with new company valued at approximately $29B

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FOUNDED: November, 1967 November, 1963

HEADQUARTERS: Santa Clara, California, USA Tokyo,

EMPLOYEES: ~15,000 worldwide ~12,000 worldwide

PATENTS: ~10,500 issued ~16,000 issued

LTM REVENUE1: $7.2 Billion $5.4 Billion2

CVD, PVD, Epi, Implant, CMP, Track, Furnace, Wet Clean, TECHNOLOGY Anneal, Conductor Etch, Dielectric Etch, ALD,

EXCELLENCE: Defect Review, Display CVD, Wafer Prober, Display Etch, Display PVD Display Track

INSTALLED BASE: 33,000 tools 54,000 tools

1. LTM = Last Twelve Months through June 2013 for TEL and July 2013 for Applied 2. TEL revenue of $5.4B assumes average yearly exchange rate of 1 USD = 86 JPY

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Expanded Profitable Cash

Opportunity Growth Returns

Combined portfolio Mutual commitment Share repurchase of strong products to improve post-closing and ability to profitability invest in highly Company structure differentiated Significant pre-tax enhances ability to products operating synergies increase cash

returns to investors

Significant opportunities to grow services business

Value Creation for Customers and Shareholders

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Due Diligence Financial Model

Financial models

Standalone models & scenarios

Combined company model Scenario planning

Modeling considerations

Key Assumptions: WFE, Market Share, Scale benefits, Tax,

dividends/buy backs, etc.

Wafer Fab Equipment spending and market share forecast

Customer mix, device mix, technology inflections, macro economy, etc

Exchange rate (¥) forecast

JGAAP vs. USGAAP

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IntegrationValue Capture Planning Through Considerations Integration Planning

Culture Finance FP&A

Focus: Customer, Close and Management Profitability, consolidation reporting

Employment

External Reporting Financial Targets Organization

Structure: Matrix / Tax & Treasury Financial Metrics Central / Distributed

Accounting & Policy Operating Rhythm Partnerships with COGS vs. Opex;

other companies Reserves Systems, Process, People,

Reward structure Chart of Accounts, Currency, Calendar

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Technology is more complex than ever

Scale helps innovate faster and lower cost

Financial models form the basis for planning

Robust pre-close integration planning

Summary

Journey has just begun

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Safe Harbor Statement

This presentation contains forward-looking statements, including those regarding industry outlooks, opportunities, strategies, business outlook, and financial model. These statements are subject to known and unknown risks and uncertainties that could cause

actual results to differ materially from those expressed or implied by such statements,

including but not limited to: the level of demand for our products, which is subject to many factors, including uncertain global economic and industry conditions and customers’ new technology and capacity requirements; the concentrated nature of our customer base; the

nature and timing of technology transitions; our ability to (i) develop, deliver and support a broad range of products and expand its markets, (ii) achieve the objectives of operational initiatives, (iii) obtain and protect intellectual property rights in key technologies, (iv) attract, motivate and retain key employees, and (v) accurately forecast future results, which

depends on multiple assumptions related to market conditions, customer requirements and business needs; and other risks described in our most recent Form 10-Q Applied undertakes no obligation to update any forward-looking statements in this

presentation. This presentation also contains non-GAAP financial measures. Reconciliations to GAAP

measures are provided in the earnings release available on the Investor page of the company’s website (www.appliedmaterials.com).

Most current version of registration statement (S-4) filed with SEC should be referred to for merger details.

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