Cadence Design Systems, Inc. · NASDAQ:CDNS
Cadence Design Systems — Investor Presentation (October 2023)
30 slides from Cadence Design Systems's investor presentation, Oct 23, 2023
Slide 1: Cadence Design Systems, Inc. Company Overview Presentation
Cadence Design Systems, Inc. Computational Software for Intelligent System Design Company Overview Presentation October 23, 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 ~11,100 INNOVATION: CREATED EMPLOYEES COMPUTATIONAL BY ENGINEERS, WORLDWIDE SOFTWARE FOR FOR ENGINEERS Intelligent System Design™ $1.023B Industry Q3 2023 REVENUE SOFTWARE AND 26 PROGRAMMING GLOBAL D
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 Oct 23, 2023 4 © 2023 Cadence Design Systems, Inc. All rights reserved
Slide 5: Developing and Deploying Computational Software
Developing and Deploying Computational Software R&D FIELD PATENTS EMPLOYEES GLOBAL ENGINEERS ENGINEERS WORLDWIDE DEVELOPMENT CENTERS 5 © 2023 Cadence Design Systems, Inc. All rights reserved
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: Recognition for ESG Performance
Recognition for ESG Performance 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 climate building up
Slide 8: Intelligent System Design Strategy
Intelligent System Design Strategy 8 © 2023 Cadence Design Systems, Inc. All rights reserved.
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 INTELLIGENCE SYSTEM Develop AI and algorithmic solutions INNOVATION DESIGN Expand into new system domains EXCELL
Slide 12: Cadence Intelligent System Design Strategy
Cadence Intelligent System Design Strategy Enabling end-to-end systems from devices to the cloud PERVASIVE Consumer Hyperscale Mobile Communications Automotive Aero/Defense Industrial Life Sciences INTELLIGENCE • Machine learning (ML) technology SYSTEM • Artificial intelligence (AI) enablement INNOV
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: Cadence Completes Acquisition of Intrinsix
Cadence Completes Acquisition of Intrinsix Expanding our reach in key high-growth verticals, including aerospace and defense • Brings highly skilled engineering teams with expertise in advanced nodes, radio frequency, mixed-signal, and security algorithms • Expands our reach in key high-growth verti
Slide 15: LLMs to Accelerate Correct-by-Construction Design
LLMs to Accelerate “Correct-by-Construction” Design Design quality innovation to reduce time and effort “Ensuring alignment between specification and design is critical, and the cost of verification has increased with the complexity of design functions. Renesas and Cadence have collaborated to devel
Slide 16: 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 Product
Slide 17: 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 18: 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 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: 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 21: 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 22: 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 23: 49ers and Cadence Team Up on Technology Partnership Focused on Sustainability
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 ($ millions)
Financial Summary 2022 Revenue Non-GAAP EPS1 Revenue 4,000 $4.50 3,500 $4.00 $3.50 3,000 ($ 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 $0.00 Free 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 cash flow Notes: 1. Non-
Slide 26: Recurring Revenue Model ($ millions)
Recurring Revenue Model 1200 Revenue2 1000 • Recurring revenue mix: ~85% for 2023 800 ($ millions) • Backlog1: $5.4B (Q3 2023) 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 • 13% (Q3’23/Q3’22) Notes: 1. Backlog = Remaining Performance Obligations + Other Arrangements with Non-Cancelable Commitmen
Slide 27: Diversified Business Across Products and Regions
Diversified Business Across Products and Regions Revenue Mix for Q3 2023 Functional Verification Americas 11% 6% Digital IC Design and Signoff 26% 15% China 13% Custom IC Design and 43% Other Asia Simulation System Design and Analysis 19% EMEA 22% IP 28% 17% Japan 27 © 2023 Cadence Design Systems, I
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 41.8%1 (Q2 2023) 5% 0% 2017 2018 2019 2020 2021 2022 TTM Q3'23 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 • $1.119B (2022) Free cash flow Stock repurchase 1200 1500 1000 • Cash: $962M ($ millions) • LT debt: $650M ($ millions) 1000 800 600 500 400 200 0 0 • Internal investment 2017 2018 2019 2020 2021 2022 TTM 2017 2018 2019 2020 2021 2022 TTM Q3'23 Q
Slide 30: © 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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