Intel 2012 Annual Report Download - page 4

After 30 years at Intel, I am honored to write my
rst letter as your Chairman. Intel is one of the
world’s most innovative companies, known not only
for its products and prots but also for its ethics
and governance. I look forward to working with
the Board of Directors to extend that record of
innovation while ensuring that the company continues to do the right
thing for stockholders, customers, employees, and communities.
As part of our commitment to increase stockholder value, the Board
began authorizing the return of cash to stockholders through the
repurchase of Intel stock in the open market in 1990, and payments of
dividends in 1992. Through year-end 2012, the repurchase and dividend
programs had returned $118.4 billion to stockholders. Intel used $4.8
billion to repurchase 191 million shares of stock in 2012, and completed
a senior notes offering of $6.2 billion, in part to fund the additional re-
purchase of Intel stock. Intel’s dividend payout for 2012 was $4.4 billion,
including a 7% increase in the dividend starting in the third quarter.
The Board also authorized signicant strategic investments in 2012,
so that Intel can continue to build innovative products at competitive
costs. Most of Intel’s 2012 capital spending of $11 billion went toward
building and equipping factories with leading-edge technologies. We
also signed agreements with ASML Holding N.V. to invest approximately
$4 billion in an effort to accelerate the deployment of 450mm wafers and
extreme ultraviolet technologies. These investments help us create value
for stockholders and customers by enabling us to optimize performance,
die size, cost, and power consumption across our product line.
I would like to thank retiring CEO Paul Otellini for his extraordinary
contributions to Intel’s success. During his tenure as CEO—from the
second quarter of 2005 through the end of 2012—Intel generated
cash from operations of $113.0 billion, increased annual revenue from
$38.8 billion to $53.3 billion, achieved breakthrough innovations such
as High-K Metal Gate and 3-D Tri-Gate transistor technologies, and
dramatically improved the energy efciency of Intel® processors.
As the Board has worked toward selecting Paul’s successor, we’ve
been gratied to recognize that Intel’s strong culture and operational
excellence have created value that extends well beyond a single leader.
I’ve worked with four Intel CEOs and reported to three of them. Each
has moved Intel forward, left an enduring legacy, and been a strong and
unique leader. Each has also maintained Intel’s core values and a culture
of integrity while embracing the change necessary for a vital future.
When Andy Grove retired as Chairman in 2004, he said that he
wanted to be remembered for helping to build an organization that
sustains itself long after his tenure. Succession planning does not begin
or end with the selection of an individual. It is a continuing investment
in culture, continuity, and change. The Board is committed to ensuring
that Intel’s future is as bright as its past.
2 012 Highlights Letter From Your Chairman
signicantly lower than we had anticipated entering the year, and
Although our nancial results were below our initial expectations,
Fullling our vision
No-compromise computing
choose between a notebook and a tablet. The rst Ultrabook systems
with the 2013 launch of Intel’s rst 22nm Tri-Gate processor
Our mobile edge
Data storage and high-performance computing
driving more than 1,500 exabytes of cloud trafc per year. Working
with our McAfee subsidiary, we are helping to build condence in
In 2012, we introduced the rst Intel® Xeon Phi™ coprocessor,
a 60-core teraop product designed for climate research, genomics,
We also launched an Intel® Xeon® processor family designed for
leadership performance, security, and energy-efciency demands
Intel Atom processor is powering micro servers that offer signicant
Our commitment to corporate responsibility
the industry in eliminating “conict minerals” from the electronics
on the launch of the “Girl Rising” lm and 10x10 social action campaign
Andy D. Bryant, Chairman of the Board
Investor materials.
background on our company and our products, nancial information,
copies of our annual report/10-K, 10-Qs, or other nancial literature,
Direct stock purchase plan.
Transfer agent and registrar.
Independent registered public accounting rm.
The Intel® brand.
Corporate responsibility and integrated value.
Caring for our people.
Caring for the planet.
role in nding solutions to the world’s environmental challenges.
products that are increasingly energy efcient. In , for the fth
products and manufacturing that ensure energy-efcient performance.
Inspiring the next generation.
Governance and ethics.
Our Corporate Governance Guidelines, Code of Conduct, Conict Minerals
White Paper, Statement on Human Trafcking and Slavery, and other
Paul S. Otellini, President and Chief Executive Ofcer Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Atom, Intel Xeon, Intel Xeon Phi, and Ultrabook are trademarks of Intel Corporation in the U.S. and/or other countries.
Intel powers the cloud
Ever-expanding data continues to create demand for transistors in
servers, storage, and networking. Intel’s data center products range
from teraop processors for high-performance computing to milliwatt
processors for energy-efcient micro servers.
Unprecedented innovation in Ultrabook™ systems
Touch-enabled convertible and detachable Ultrabook™ systems combine
the productivity of a notebook with the convenience of a laptop. Intel
expects another wave of Ultrabook device innovation in 2013, with
the arrival of the company’s next-generation “Haswell” processor.
Investing in the future
Intel continues to deliver the world’s most advanced silicon technology,
ramping high-volume shipments of cutting-edge 22-nanometer (nm)
processors while building our next-generation 14nm factory network
and developing 10nm and smaller technologies.
Two-for-one
computing
Manufacturing
leadership
From
teraops
to milliwatts