Applied Materials External Use

Embracing Change with Green ITAn Applied Materials Case Study

Greg AldrichApplied Materials IT Production Services

October 16, 2008

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Applied Materials Overview

Founded 1967

Annual Revenue (2007 approx) $9.7 Billion

Worldwide Employees (approx) 14,500

Worldwide Locations 18 Countries

The Global Leader in Nanomanufacturing Technology Solutions

Semiconductor chips

Flat panel displays

Solar photovoltaic cells

Flexible electronics

Energy efficient glass

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Cost per transistor

FIRST

Cost per area

THEN

Cost per watt

NOW

Driving Down Cost

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Applied Materials Worldwide

Research, Development and Engineering

and/or Manufacturing Centers:

Sales and/or Service Offices

Israel

108 Worldwide Locations

Japan

India

Korea Europe

China

Taiwan

North America

South

East Asia

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Environmental Stewardship

Company commitment to reducing

carbon footprint through…

– Environment focused products

– Improving energy efficiency

– Reducing the impact of operations

Goal: 50,000 ton CO2 reduction by

2012

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IT Commitment

Goal: 10,000 ton Carbon footprint reduction

per year by 2012

20% of corporate commitment

Help lead Applied’s Green Strategy

Achieved 3,000 ton per year reduction to date

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Green IT at Applied

Strategy

Started with a formal “Green

IT” Program to gain focus

Now Green is “business as

usual”

– Creating a “Green culture”

– Green by design

– All projects have green

transparency

Initiatives

PC Refresh

Server Virtualization

Data Center Optimization

Server Room Consolidation

Enhanced Collaboration Tools

Telepresence

Enabling the remote worker (Applied Anywhere)

Improved multi-function devices

Socially Responsible Outsourcing

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PC Refresh

Transitioned notebooks and desktops to more energy-efficient models – Energy Star compliant models

Established aggressive hibernation settings

– 10 minutes versus 20

Replaced broken CRTs with more

efficient LCDs

13,000 new systems deployed to date

Combined savings of 750,000 kWh/month

Phased approach to manage capital outlays

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Server Virtualization

Reduces hardware footprint

Improves use of existing resources

Speeds deployment of new “virtual servers”

500 physical servers now virtual machines on just 40

Qualified for Austin Energy rebate up to $200K

Achieved same computing power at half the cost

Cut time to deploy new servers from 3 days to 3 hours

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Data Center Optimization

9,000 square feet

Optimize air flow and reduce cooling requirements

Retired older equipment through Austin Energy’s rebate program

Instituted hot aisle, cold aisle structure

Moved vents, cooling equipment

Installed a high-efficiency membrane roof

Saved 37.1 kWh per year

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Server Room ConsolidationSanta Clara Headquarters

Consolidated 27 rooms down to 1

Moved 85 physical servers and 50 Terabytes of storage

Leveraged self-contained hot aisle environment

Achieved a 35% reduction in energy

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Collaboration Tools

Reduce greenhouse gases through reduced travel

Improve collaboration and productivity

Microsoft Office Communicator 2007

Microsoft Office SharePoint Server

Web and Audio conferencing

Enhanced video conferencing

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Telepresence: The next level of collaboration

High definition, lifelike meeting experience

Increased global coordination

Greater customer intimacy

Increases productive hours of executives

ROI in one year

Four sites in Austin, Santa Clara and Israel

Expansion planned in Asia

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“Applied Anywhere”

Encourages employees to work from anywhere

– Home, office, customer and supplier locations

Reduces commuting

Enhances productivity

Increases customer intimacy

Raises morale

30 % IT participation

Deployed supporting technologies

– Home routers with physical IP phones

– Portable IP Softphones

– Web and Audio Conferencing

Reduces facilities and real estate requirements

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Print/Fax/Copies

Energy efficient models

Double sided

“Think before you print”

Reduced printing YTD by about 50%

Carbon reduction in toner savings

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Socially Responsible Outsourcing

Promote awareness of social responsibility among our managed

services partners

Drive green strategies beyond our organizations

Include criteria in supplier selection and evaluations

Focus Areas

– Labor

– Health and Safety

– Environmental

– Management Systems

– Ethics

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Reuse and Recycling

Formal corporate program focused on asset recovery

Covers any item no longer needed by the business

Three strategies

– Reuse within Applied

– Resale

– Recycle

PCs, CRT monitors, servers and server racks

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Carbon Footprint Reduction

*Red Box denotes projections.

0

100

200

300

400

500

600

700

800

900

To

ns o

f C

O2

Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08

Quarterly Carbon Dioxide Footprint Reduction

PDC Telepresence

Telepresence

Data Center Optimization

PC Refresh

Server Refresh

MFD Deployment

GIS Applied Anywhere

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Get Started Now

Identify your top energy users

Leverage your technology refresh cycle

Make being green a community effort

Change behaviors and technology

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Safe Harbor Statement

This presentation contains forward-looking statements, including those relating

to Applied Materials’ cost-per-watt-reduction strategy, solar business, product

capabilities, served markets and growth opportunities, and the solar industry

outlook. 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: demand

for solar products, which is subject to many factors, including global economic

and market conditions, energy costs, government policies and incentives

relating to renewable energy, technological innovations and evolving industry

standards; the performance of acquired businesses; Applied Materials’ ability

to (i) develop, deliver and support its broad range of products, (ii) manage its

resources and production capability, (iii) predict the characteristics of, and

capitalize on opportunities in, emerging markets, and (iv) attract and retain key

employees; and other risks described in Applied Materials’ SEC filings. All

forward-looking statements are based on management’s estimates,

projections and assumptions as of the date hereof, and Applied Materials

undertakes no obligation to update any such statements.

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What’s next for Applied Materials Green IT?

Expand Telepresence use

Proliferate Applied Anywhere and

expand to managed services

partners

Server virtualization by default

Continue PC refresh cycle

Alternative energy purchases

Enhance collaboration tools

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Benefits of Green Programs

Cost savings

Improved financial performance

Environmental stewardship

Enhanced reputation with stakeholders