Tokyo Electron Ltd. · TSE:8035
Tokyo Electron — Merger or Acquisition (September 2013)
33 slides from Tokyo Electron's merger presentation, Sep 25, 2013
Slide 1: Creating a New Global Innovator
rage un CREATING A is NEW GLOBAL INNOVATOR ) Amen, ot TOKYO ELECTRON
Slide 2: Creating a New Global Innovator
Creating a New Global Innovator
Slide 3: Today's Announcement
All stock transaction with new company valued at approximately $29B 4 Applied Materials and Tokyo Electron combining in a merger of equals Creates value for customers and shareholders and great opportunities for our employees Creates a new global innovator in Precision Materials Engineering and Patt
Slide 4: Applied Materials and Tokyo Electron at a glance
November, 1967 November, 1963 Santa Clara, California, USA Tokyo, Japan ~15,000 worldwide ~12,000 worldwide ~10,500 issued ~16,000 issued $7.2 Billion $5.4 Billion 2 CVD, PVD, Epi, Implant, CMP, Anneal, Conductor Etch, Defect Review, Display CVD, Display PVD Track, Furnace, Wet Clean, Dielectric Etc
Slide 5: Creating value for Customers, Employees and Shareholders
6 Creating value for Customers, Employees and Shareholders Creating value for Customers, Employees and Shareholders Combined portfolio of strong products and ability to invest in highly differentiated products Opportunities to enhance services and field support CUSTOMERS EMPLOYEES INVESTORS Expanded
Slide 6: Our market environment
7 Our market environment Forming our new company Addressing our customers’ needs A company built on people and talent Beginning our new journey
Slide 7: Our market environment
8 Our market environment Forming our new company Addressing our customers’ needs A company built on people and talent Beginning our new journey
Slide 8: Enabling the Most Exciting Industries on Earth
9 SEMICONDUCTOR DISPLAY YEARS Combined Experience of Enabling the Most Exciting Industries on Earth 1 Source: SIA, IC Knowledge LLC 2 Source: Display Search, Nikkei BP, Applied Materials 20,000,000x reduction in COST PER TRANSISTOR in 30 years 20x reduction in COST PER AREA in 15 years
Slide 9: Our Market Environment Today
10 Cycles of Learning Cost Pressures Market Concentration Technology Complexity Our Market Environment Today Top 5 customers are >60% of WFE spending More inflections in the next 5 years than last 15 New applications and markets requires cost effective solutions Faster pace of innovation everywhere
Slide 10: Driving major inflections: war for mobility
Transistor Interconnect Memory Patterning Packaging Display DRIVING MAJOR INFLECTIONS Functions and features Battery life Interface experience Form factors At the right cost WAR FOR MOBILITY ENABLED BY OUR TECHNOLOGY Precision Materials Engineering and Patterning innovation Device Performance and Yi
Slide 11: Generational increases in new materials
12 GENERATIONAL INCREASES IN NEW MATERIALS 3D memory transition shifts spending to Materials Deposition and Removal 3Xnm 1Xnm 1Ynm 3D NAND Materials Complexity is increasing in Logic THERMAL & IMPLANT CVD ETCH LITHO Source: Customer Presentations 130nm 90nm 65nm 45nm 32nm 22nm 3X1X1Y 3D 3X1X1Y 3D 3X
Slide 12: Addressing our customers' needs
13 Addressing our customers’ needs Our market environment Forming our new company A company built on people and talent Beginning our new journey
Slide 13: Terry Higashi, Gary Dickerson Live from Tokyo
14 Terry Higashi Gary Dickerson Live from Tokyo
Slide 14: Combination accelerates our momentum for profitable growth
15 Combination accelerates our momentum for profitable growth Complementary strengths provide significant opportunities to understand and solve customers’ high-value problems better, faster and at lower cost Linking core competencies enables customers’ new device architectures through materials inno
Slide 15: Opportunities to combine complementary competencies for customers
OPPORTUNITIES TO COMBINE COMPLEMENTARY COMPETENCIES FOR CUSTOMERS Deposition, etch and clean • No queue time • No vacuum break 16 A New Global Innovator in Precision Materials Engineering and Patterning Precision films Precision materials removal Materials modification Interface engineering Scaling
Slide 16: Broad Portfolio to Address Customers' Challenges
17 High Speed, Low Leakage TRANSISTORS Low Resistance and Reliable INTERCONNECT 3D NAND Memory LOW-COST SCALING Enabled by Patterning Broad Portfolio to Address Customers’ Challenges KEY: TEL , APPLIED Anneal CMP Conductor Etch CVD Epi Furnace Implant PVD Track Wet Clean CMP CVD Dielectric Etch PVD
Slide 17: Combined Expertise in Etch
18 Combined Expertise in Etch E-chucks Chamber matching Chemistry Source Technology Chamber design Heaters Integrated metrology Best Known Methods Chemical delivery Selective Material Removal New $1B Opportunity Dielectric Etch (Tokyo Electron) >$1.5B Market Conductor Etch (Applied Materials) >$2.2B
Slide 18: Our Vision for Semiconductor
19 Randhir Thakur Our Vision for SEMICONDUCTOR
Slide 19: Semiconductor Complementary Competencies
20 Semiconductor Complementary Competencies Combination better positioned to innovate for large, sophisticated customers Higher velocity of innovation Broadest product portfolio in both single-wafer and batch systems Integrated process innovation for customers Combined expertise in patterning, trans
Slide 20: Our Vision for Display
21 Ali Salehpour Our Vision for DISPLAY
Slide 21: Display: Complementary Merger
22 Display Complementary Merger No Overlap Between Products AKT: CVD, PVD & Array Test TEL: Etch, Litho Coater/Developer Synergy to Solve Customer HVPs Transistor Level R&D Interface Engineering Better Support for Customers Global Reach Responsiveness Supply Line Synergies Volume Common Parts Higher
Slide 22: New Opportunity for Precision Materials Engineering
23 > 300ppi Resolution New Opportunity for Precision Materials Engineering More Process Steps, New Materials, Tighter Dimensions a-Si Transistors LTPS MOx
Slide 23: Forming our new company
24 Forming our new company Our market environment Addressing our customers’ needs A company built on people and talent Beginning our new journey
Slide 24: New Company Structure
Headquarters and Listings Shared Leadership Team Shared Governance 25 New Company Structure Dual headquarters in Santa Clara and Tokyo Dual listing on NASDAQ and Tokyo Stock Exchange Combine into a new company incorporated in the Netherlands with new name to be announced Chairman: Tetsuro Higashi Vi
Slide 25: A company built on people and talent
26 A company built on people and talent Our market environment Forming our new company Addressing our customers’ needs Beginning our new journey
Slide 26: Expanded Opportunities for our employees around the world
Expanded Opportunities for our employees around the world 27 Be a part of a company that will shape industries Expanded career and development opportunities Be a part of the broadest technical community in the industry Learn from each other by combining best practices and technologies
Slide 27: Our Global Footprint will Mirror our Customer's Footprint
28 US 25% ASIA 65% US 33% JAPAN 34% REVENUE BY REGION EMPLOYEES BY REGION 26,000 total EUROPE 10% REST OF ASIA 20% EUROPE 13% Our Global Footprint will Mirror our Customer’s Footprint
Slide 28: Beginning our new journey
29 Beginning our new journey Our market environment Forming our new company Addressing our customers’ needs A company built on people and talent
Slide 29: Extensive Integration Experience
30 Extensive Integration Experience Tried and tested integration practices Dual headquarters and CEO to relocate to Tokyo Integrated Board of Directors Combine best practices to achieve ‘faster, better and at lower cost’ Process Shared Values Global perspectives and cultures Strong heritage of custo
Slide 30: Where You Can Go for More Information
Inside Applied Your Manager CEO & Leadership Videos and Webcasts HR Business Partners Email Employee Questions New Website newglobalinnovator.com 31 Where You Can Go for More Information Direct media inquiries to Kevin Winston in Corporate Communications and Public Affairs Kevin_Winston@amat.com or
Slide 31: Our Journey starts today
We will all be part of something historic and very special in shaping the industry for decades to come 32 We are creating a new global innovator with expanded capabilities in precision materials engineering and patterning This will enable us to solve our customers biggest challenges faster, better a
Slide 32: employee_questions@amat.com
33 employee_questions@amat.com
Slide 33: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking statements, including but not limited to those regarding the proposed business combination between Applied Materials, and Tokyo Electron (the “Business Combination”) and the transactions related thereto. These statements may disc
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