Cadence Design Systems, Inc. · NASDAQ:CDNS
Cadence Design Systems — Investor Presentation (July 2023)
29 slides from Cadence Design Systems's investor presentation, Jul 24, 2023
Slide 1: Cadence Design Systems, Inc. Company Overview Presentation
Cadence Design Systems, Inc. Computational Software for Intelligent System Design Company Overview Presentation July 24, 2023
Slide 2: Safe Harbor Statement and Regulation G
Safe Harbor Statement and Regulation G Safe Harbor Statement The following discussion contains forward-looking statements, including our outlook on future business and operating results. Due to risks, uncertainties and other factors, many of which are outside our control, actual results may differ m
Slide 3: Cadence at a Glance
Cadence at a Glance Computational technology for designing today’s electronic systems Leader Culture ~10,800 INNOVATION: CREATED EMPLOYEES COMPUTATIONAL BY ENGINEERS, WORLDWIDE SOFTWARE FOR FOR ENGINEERS Intelligent System Design™ $977M Industry Q2 2023 REVENUE SOFTWARE AND 26 PROGRAMMING GLOBAL DEV
Slide 4: A Great Place to Work Around the Globe
A Great Place to Work Around the Globe Source: Cadence Sustainability Report, 2022 https://www.cadence.com/en_US/home/company/csr.html Current as of Jul 24, 2023 4 © 2023 Cadence Design Sy stems, Inc. All rights reserv ed
Slide 5: Developing and Deploying Computational Software
Developing and Deploying Computational Software 6,800+ 2,200+ FIELD 1,600+ PATENTS ~10,800 EMPLOYEES 26 R&D GLOBAL ENGINEERS ENGINEERS WORLDWIDE DEVELOPMENT CENTERS 5 © 2023 Cadence Design Sy stems, Inc. All rights reserv ed
Slide 6: Cadence People and Sustainability
Cadence People and Sustainability Innovation Net-Zero GHG by 2040 Cadence Giving Diversity, Equity, and Inclusion Launched nine significant innovative Formally committed to the Science Based Targets We are proud to have donated more than $3.7 products and completed key strategic initiative and provi
Slide 7: Progress on Our 2022 ESG Strategies
Progress on Our 2022 ESG Strategies Innovation Workforce Environmental Sustainability Cadence is a pivotal leader in electronic design, People come to Cadence to do meaningful work with a global We are committed to investing our resources to combat building upon more than 30 years of impact. Each da
Slide 8: Intelligent System Design Strategy
Intelligent System Design Strategy 8 © 2023 Cadence Design Sy stems, Inc. All rights reserv ed.
Slide 9: Major Electronics Industry Drivers
Major Electronics Industry Drivers The semiconductor Data Science and Hyperscale Autonomous industry is rapidly Machine Learning Computing Vehicles growing as a result of an unprecedented combination of technology drivers impacting multiple industry segments 5G Industrial Life Communications IoT Sci
Slide 10: Cadence Is Leading the Computational Software Convergence
Cadence Is Leading the Computational Software Convergence PERVASIVE System Design AI / ML Algorithm, SW, Data Analytics Multiphysics, CFD, PCB SYSTEM DESIGN IP and Chip EDA Digital, Custom, System Verification, and Packaging Intelligent System Design™ Merger of EDA, system design, AI Pervasive intel
Slide 11: Cadence Intelligent System Design Strategy
Cadence Intelligent System Design Strategy Computational Software as a Core Competency PERVASIVE Consumer Hyperscale Mobile Communications Automotive Aero/Defense Industrial Life Sciences COMPUTATIONAL SOFTWARE INTELLIGENCE SYSTEM Develop AI and algorithmic solutions INNOVATION DESIGN Expand into ne
Slide 12: Cadence Intelligent System Design Strategy: End-to-End Systems
Cadence Intelligent System Design Strategy Enabling end-to-end systems from devices to the cloud PERVASIVE COMPUTATIONAL SOFTWARE Consumer Hyperscale Mobile Communications Automotive Aero/Defense Industrial Life Sciences INTELLIGENCE • Machine learning (ML) technology SYSTEM • Artificial intelligenc
Slide 13: Recent Product Innovation and News
Recent Product Innovation and News Pervasive Intelligence 20+ significant products • Virtuoso® Studio – Custom/analog design with broader support for systems, including in the past 3 years RF, mixed-signal, photonics, and advanced heterogeneous designs • Allegro® X AI – Generative AI for Allegro X-b
Slide 14: The Best Gets Better – Virtuoso Studio
The Best Gets Better – Virtuoso Studio “ The new device routing technology within Virtuoso Studio, when applied to cutting-edge manufacturing processes, provides us the next level of automation with excellent results and faster time to market. ” Ching San Wu Corporate Vice President, MediaTek 3X Pro
Slide 15: Announcing Allegro X AI
Announcing Allegro X AI Generative AI for Allegro X PCB place-and-route automation Schneider Electric Brings the automation approach of IC digital design to PCB “ At Schneider Electric, turnaround time and the quality of the end product are Allegro® X AI absolutely critical for business success. Wit
Slide 16: The First Comprehensive Chips to Systems Generative AI Portfolio
The First Comprehensive “Chips to Systems” Generative AI Portfolio Cadence® Virtuoso® Studio Verisium™ Allegro® X AI Optimality™ Platforms AI-Driven AI-Driven Cerebrus™ Analog/Custom Debug and Printed Circuit Board Multiphysics Digital Design Design Verification Design Optimization Cadence Joint Ent
Slide 17: Verisium AI-Driven Verification Platform
Verisium AI-Driven Verification Platform Verisium™ AI-Driven Verification Debug Design SemanticDiff PinDown WaveMiner AutoTriage Repository Cadence Wave Coverage Mined AI data data attributes models JedAI Platform* Manager Jasper™ Xcelium ™ Palladium® Protium ™ Helium ™ Formal Simulation Emulation P
Slide 18: McLaren Racing: Designed with Cadence from Chips to Chassis
McLaren Racing: Designed with Cadence from Chips to Chassis Fidelity™ CFD Analysis of F1 Imperial Front Wing IC and PCB Design of ECU WMLES visualization of vortex formation, interaction, and breakdown Analog and PCB design for engine control and racing metrics 18 © 2023 Cadence Design Sy stems, Inc
Slide 19: Physics-based Digital Twins for Sustainable Data Center Design
Physics-based Digital Twins for Sustainable Data Center Design Analyze and Optimize Thermal from Chips to Buildings and the Chillers IC Thermal Analysis Electronic Cooling Solutions Room, Building AC Systems Package Environment Rack Chip PCB Blade Data Center Enable engineers to predict, visualize,
Slide 20: Accelerating Drug Discovery with Computational Software
Accelerating Drug Discovery with Computational Software Industry’s first SaaS-based cloud-native platform Scientific and computational molecular design leader for nearly 25 years Pioneered Orion® – the only cloud-native molecular design platform Utilizing AI and 3D simulation software to explore mil
Slide 21: Cadence Acquires Cascade Technologies
Cadence Acquires Cascade Technologies Accelerating our execution of the Intelligent System Design strategy Acquires Aerodynamics Reacting Flow Extending our system innovation portfolio • Technology experts with a complete targeting high-fidelity software solution for high-fidelity CFD simulation CFD
Slide 22: 49ers and Cadence Team Up on Technology Partnership Focused on Sustainability
49ers and Cadnece Team Up on 49ers and Cadnece Team Up on Technology Partnership Focused on Sustainability Technology Partnership Focused on Sustainability The 49ers will consult with Cadence to identify stadium Locally, Cadence will support and volunteer with the 49ers Foundation’s energy efficienc
Slide 23: Financial Performance
Financial Performance 23 © 2023 Cadence Design Sy stems, Inc. All rights reserv ed.
Slide 24: Financial Summary
Financial Summary 2022 $3.562B Revenue Non-GAAP EPS1 Revenue 4,000 $4.50 3,500 $4.00 $3.50 3,000 40% ($ millions) $3.00 2,500 $2.50 Non-GAAP 2,000 $2.00 operating 1,500 $1.50 margin1 1,000 $1.00 500 $0.50 0 $0.00 Free 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 cash flow No
Slide 25: Recurring Revenue Model
Recurring Revenue Model High visibility software revenue stream 1200 Revenue2 1000 • Recurring revenue mix: ~85% for 2023 800 ($ millions) • Backlog 1: $5.3B (Q2 2023) 600 400 200 Revenue growth 0 2017 2018 2019 2020 2021 2022 2023 • 14% (Q2’23/Q2’22) Notes: 1. Backlog = Remaining Performance Ob lig
Slide 26: Diversified Business Across Products and Regions
Diversified Business Across Products and Regions Revenue Mix for Q2 2023 Functional Verification Americas 11% 6% Digital IC Design and Signoff 27% 17% China 13% 41% Custom IC Design and Other Asia Simulation System Design and Analysis 22% 18% EMEA IP 27% 18% Japan 26 © 2023 Cadence Design Sy stems,
Slide 27: Driving Profitable Growth
Driving Profitable Growth Non-GAAP Operating Margin1 Strong operating 45% 40% 35% profitability 30% 25% • Focus on growth and disciplined ROI-centric 20% resource allocation 15% 10% • Non-GAAP operating margin 41.8%1 (Q2 2023) 5% 0% 2017 2018 2019 2020 2021 2022 TTM Q2'23 Notes: 1. Non-GAAP operatin
Slide 28: Cash Flow, Capital Structure, and Capital Allocation
Cash Flow, Capital Structure, and Capital Allocation Free cash flow generation • $1.119B (2022) Free cash flow Stock repurchase Capital structure (Q2 2023) 1200 1200 1000 • Cash: $874M 1000 ($ millions) • ST credit facility: $700M ($ millions) 800 800 600 600 400 • LT debt: $650M 400 200 200 0 0 Cap
Slide 29: © 2023 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo,
© 2023 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo, and the other Cadence marks found at https://www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. Accellera and SystemC are trademarks of Accellera Systems I
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