Cadence Design Systems, Inc. · NASDAQ:CDNS
Cadence Design Systems — Investor Presentation (April 2023)
30 slides from Cadence Design Systems's investor presentation, Apr 24, 2023
Slide 1: Cadence Design Systems Company Overview Presentation Q1 2023
Cadence Design Systems, Inc. Computational Software for Intelligent System Design Company Overview Presentation Q1 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: Company Overview
Company Overview 3 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 4: Cadence at a Glance
Cadence at a Glance Computational technology for designing today’s electronic systems Leader Culture ~10,600 COMPUTATIONAL INNOVATION: CREATED EMPLOYEES SOFTWARE FOR BY ENGINEERS, WORLDWIDE FOR ENGINEERS Intelligent System Design™ $1.022B Industry Q1 2023 REVENUE SOFTWARE AND 26 PROGRAMMING GLOBAL D
Slide 5: 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/content/dam/cadence-www/global/en_US/documents/company/csr/cadence-2022-environmental-social-and-governance-report Current as of Apr 24, 2023 5 © 2023 Cadence Design Systems, Inc. All rights re
Slide 6: Engineers, patents and global development centers
R&D FIELD PATENTS EMPLOYEES GLOBAL ENGINEERS ENGINEERS WORLDWIDE DEVELOPMENT CENTERS 6 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 7: 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 8: Progress on Our 2022 ESG Strategies
Progress on Our 2022 ESG Strategies 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 day with Cadence offers exciting opportunities clima
Slide 9: Intelligent System Design Strategy
Intelligent System Design Strategy 9 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 10: Major Electronics Industry Drivers
Major Electronics Industry Drivers The semiconductor industry is rapidly Data Science and Hyperscale Autonomous growing as a result of Machine Learning Computing Vehicles an unprecedented combination of technology drivers impacting multiple industry segments 5G Industrial Healthcare Communications I
Slide 11: 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, SYSTEM PCB DESIGN IP and Chip EDA Digital, Custom, System Verification, and Packaging Intelligent System Design™ Merger of EDA, system design, AI Pervasive intel
Slide 12: Cadence Intelligent System Design Strategy
Cadence Intelligent System Design Strategy Computational Software as a Core Competency PERVASIVE INTELLIGENCE Develop AI and algorithmic solutions SYSTEM INNOVATION Expand into new system domains DESIGN EXCELLENCE Execute on core EDA + key IP 12 © 2023 Cadence Design Systems, Inc. All rights reserve
Slide 13: Cadence Strategy
Cadence Strategy Enabling end-to-end systems from devices to the cloud Consumer Hyperscale Mobile Communications Automotive Aero / Defense Industrial Life Sciences PERVASIVE • Machine learning (ML) technology INTELLIGENCE • Artificial intelligence (AI) enablement SYSTEM INNOVATION • Multi-level, mul
Slide 14: 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 15: 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 Leverages
Slide 16: 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. With
Slide 17: 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 18: 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 Prot
Slide 19: 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 19 © 2023 Cadence Design Systems, Inc.
Slide 20: Future Facilities – The Digital Twin Solution
Future Facilities – The Digital Twin Solution Engineering simulation-driven, physics-based 3D digital twins for sustainable data center design and operations Analyze and Optimize Thermal from Chips to the Data Center Celsius™ Thermal Solver 6Sigma Thermal Simulation Chip Package PCB Blade Rack Data
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: 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 23: 49ers and Cadence Team Up on Sustainability Partnership
49ers and Cadnece Team Up on Technology Partnership Focused on Sustainability The 49ers will consult with Cadence to identify Locally, Cadence will support and volunteer with the 49ers stadium energy efficiencies, enabling the 49ers to Foundation’s 49ers EDU program presented by Chevron, which conti
Slide 24: Financial Performance
Financial Performance 24 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 25: Financial Summary
Financial Summary 2022 Revenue Non-GAAP EPS1 4,000 $4.50 3,500 $4.00 $3.50 Revenue 3,000 ($ millions) 2,500 $3.00 $2.50 2,000 $2.00 1,500 $1.50 Non-GAAP 1,000 $1.00 operating 500 margin1 $0.50 0 $0.00 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Free cash flow Notes: 1. Non-
Slide 26: Recurring Revenue Model
Recurring Revenue Model High visibility software revenue stream 1200 Revenue2 1000 • Recurring revenue mix: ~85% for 2023 800 ($ millions) • Backlog1: $5.4B (Q1 2023) 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 • 13% (Q1’23/Q1’22) Notes: 1. Backlog = Remaining Performance Obligations + Other Ar
Slide 27: Diversified Business Across Products and Regions
Diversified Business Across Products and Regions Functional Verification Americas 11% 6% Digital IC Design and 32% China 15% 12% Signoff 44% Other Asia Custom IC Design and Simulation 20% 18% EMEA System Design and 25% Analysis 17% Japan IP 27 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 28: Driving Profitable Growth
Driving Profitable Growth Non-GAAP Operating Margin1 45% 40% 35% 30% 25% • Focus on growth and disciplined ROI-centric 20% resource allocation 15% 10% • Non-GAAP operating margin 42.1%1 (Q1 2023) 5% 0% 2017 2018 2019 2020 2021 2022 TTM Q1'23 Notes: 1. Non-GAAP operating margin and non-GAAP EPS (excl
Slide 29: Cash Flow, Capital Structure, and Capital Allocation
Cash Flow, Capital Structure, and Capital Allocation Free cash flow generation • $1.119B (2022) Capital structure (Q1 2023) Free cash flow Stock repurchase 1200 1200 • Cash: $917M 1000 1000 ($ millions) ($ millions) 800 • ST credit facility1: $700M 800 600 600 • LT debt: $650M 400 400 200 200 Capita
Slide 30: Cadence Legal Slide
Cadence Legal Slide © 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
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