Slide 1: Corporate Overview for Investors
Corporate Overview for Investors May 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, statements regarding Synopsys’ short-term and long-term financial targets, expectations and objectives; strategies related to our products, technology and services; business and market ou
Slide 3: Synopsys: The Market & Technology Leader
Synopsys: The Market & Technology Leader FY22 F Y 2 3 Ta r g e t s ( 1 ) ( 2 ) Broad Product Portfolio Revenue: $5.08B $5.79B - $5.83B Growth Rate: 20.9% 14% - 15% Electronic Design Non-GAAP ~34.5%* 33.0% Automation Operating Margin: *Midpoint of range (EDA) Non-GAAP $8.90 $10.77 - $10.84 Diluted EP
Slide 4: Synopsys: The Market & Technology Leader
Synopsys: The Market & Technology Leader Design Design Software Automation IP Integrity ~35 years of investment ~25 years ~9 years and execution ~25% of revenue ~10% of revenue ~65% of revenue #2 IP Vendor, Industry Leader, Market Leader Broadest Portfolio Broadest Portfolio © 2023 Synopsys, Inc. 4
Slide 5: Long-term Financial Objectives
Long-term Financial Objectives 1 While the results in any given period will vary due to timing of product deliverables, acquisitions or other near-term priorities, our long-term, multi-year objectives2 are: Revenue Margin Earnings Annual double-digit growth Annual non-GAAP Annual non-GAAP EPS • Desi
Slide 6: Synopsys: The Market and Technology Leader
Synopsys: The Market and Technology Leader Uniquely Positioned for Growth and Stability ► Robust End Markets • Clear Technology Leadership • Financial Strength and Growth © 2023 Synopsys, Inc. 6
Slide 7: Global Value Chain – 2022
Global Value Chain – 2022 EDA & IP – At the Heart of Accelerating Electronics Innovation EDA & IP $16.6B Embedded Software $15.0B Foundry $142B Semiconductors $637B Electronic Systems $1.86T Sources: ESD Alliance, Ipnest, MarketsandMarkets, IC Insights © 2023 Synopsys, Inc. 7
Slide 8: Blue Chip, Diversified Customer Base
Blue Chip, Diversified Customer Base Semiconductors Systems Software Developers • Semi R&D (including EDA) is a • ~45% of our revenue comes from • Key function across all industries: top investment priority for semi systems companies semis and systems, to enterprises and system customers in all • Sy
Slide 9: Dynamic Change in Many Markets
Dynamic Change in Many Markets HPC, Data Center N e t w o rk i n g M o b i l e / 5G Au t o m o t i ve ( AI a c c e l e r a t o r s ) Demand for Smart Everything seems limitless Industrial Enterprise Healthcare Memory Au t o m a t i o n S o f t w a re Innovation is fueled by semiconductor and softwar
Slide 10: Synopsys: The Market and Technology Leader
Synopsys: The Market and Technology Leader Uniquely Positioned for Growth and Stability • Robust End Markets • Clear Technology Leadership • Financial Strength and Growth © 2023 Synopsys, Inc. 10
Slide 11: Synopsys Enables System Innovation, Silicon to Software
Synopsys Enables System Innovation, Silicon to Software Comprehensive World-Class Technology Software: IP: Application security testing & quality Broadest portfolio, silicon-proven Leader in Gartner’s Magic Quadrant #1 interface, analog, memories, physical Systems: Silicon: Leader in HW/SW verificat
Slide 12: Leader in EDA
LEADER IN EDA • Market and technology leader in design automation, the tools and technologies used to design semiconductor chips and systems ~$9.9 billion market*; generally tracks semiconductor R&D spend over time • Growth drivers: all aspects of chip & system complexity • All leading semiconductor
Slide 13: Synopsys.ai – Industry's First AI-driven Full EDA Suite
Synopsys.ai – Industry’s First AI-driven Full EDA Suite Delivers unmatched productivity & QoR boost AI Driven EDA Stack • Synopsys introduces Verification Space industry first AI Optimization driven (VSO.ai) - AIfull 2 inferred faster & better stack EDA suite EDA Data Analytics coverage • AI engines
Slide 14: DSO.ai Success & Momentum
DSO.ai Success & Momentum AI driven EDA Innovation • Industry first AI App for Implementation • Deployed in 9 out of top 10 semi logos • 200+ production tape-outs & counting © 2023 Synopsys, Inc. 14
Slide 15: #1 in Digital Design: Synopsys Digital Design Family
#1 in Digital Design: Synopsys Digital Design Family S Y N O P S Y S D I G I TA L D E S I G N FA M I LY SYSTEM DESIGN 3DIC Compiler DIGITAL DESIGN Fusion #1 Anchors: Synthesis, P&R, Signoff RTL Architect Architecture Fusion of algorithms, engines, data model Test Fusion Design Compiler NXT TestMAX I
Slide 16: Verification Hardware: ZeBu Server
Verification Hardware: ZeBu ® Server 5 Highest performance for large workloads Performance and throughput 2X higher than prior generation Ready for largest, multi-die designs Unmatched reliability 99.9+% projected uptime ZeBu Server 5 Best datacenter scalability through power and footprint © 2023 Sy
Slide 17: Efficient Design Implementation for Multi-Die Systems
Efficient Design Implementation for Multi-Die Systems UNIFIED EXPLORATION-TO-SIGNOFF DIE-TO-DIE IP 3DIC COMPILER UCIe Die-to-Die IP Complete architecture- to-signoff solution in a Delivers up to 4Tbps Exploration & PHY Creation consolidated user bandwidth in a multi- environment Controller module co
Slide 18: Leader in Design IP
Leader in Design IP • #2 market share in IP, the reusable building blocks that are used for chip designs – Leading supplier of interface, memory, analog and physical IP – ~$6.7 billion market*, benefitting from our customers’ move to outsourcing more and more complex IP • IP reuse reduces our custom
Slide 19: Broadest and Most Comprehensive IP Platform
Broadest and Most Comprehensive IP Platform SYNOPSYS IP PORTFOLIO Design Solutions Growing IP >20% growth in FY22 DDR/HBM PCIe HDMI/DP USB 10/56/112G XSR/UCIe Demand C/D-PHY M-PHY PHY PHY PHY PHY PHY PHY CPUs Security MPUs DDR/HBM PCIe HDMI/DP USB Ethernet Die-to-Die CSI UFS controller controller co
Slide 20: High-Impact Markets: Increasing Technology Complexity
High-Impact Markets: Increasing Technology Complexity Driving Growth in Third-Party IP Demand AI AUTOMOTIVE CLOUD IoT Machine Learning, ADAS, Networking, Smart Home, Deep Neural Infotainment, Servers AI Industrial, Networks Connected Vehicle Accelerators Wearables © 2023 Synopsys, Inc. 20
Slide 21: Leader in Software Integrity
Leader in Software Integrity • Assembled and developed the broadest portfolio of solutions on the market; >$500 million TTM revenue • Solutions that enable organizations to manage application security, quality and compliance risks at the speed their business demands • Approximately $2.5-3.0 billion
Slide 22: Software Security & Quality Market
Software Security & Quality Market TAM: • Evolving market, ~15% growth ~$4.5-6.5B • Growth drivers: - Ubiquity and growth of software - Cloud transformation - Significant business risk from breaches SAM: ~$2.5-3.0B - Rise of open source - Software supply chain complexities • Synopsys long-term multi
Slide 23: Software Integrity Portfolio
Software Integrity Portfolio Software Intelligent Code Sight™ Coverity® Black Duck® Seeker® Defensics® Code Dx® Orchestration Insight – Risk Management and Software Supply Chain SaaS fAST Static fAST SCA WhiteHat® fAST Dynamic Future services Polaris Software Integrity Platform® Security Testing Ser
Slide 24: Market Leadership
Market Leadership Magic Quadrant for Top ranking in all five Critical Capabilities Application Security Testing for Application Security Testing This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartne
Slide 25: Synopsys: The Market and Technology Leader
Synopsys: The Market and Technology Leader Uniquely Positioned for Growth and Stability • Robust End Markets • Clear Technology Leadership ► Financial Strength and Growth © 2023 Synopsys, Inc. 25
Slide 26: Excellent Financial Execution
Excellent Financial Execution Revenue (M) Non-GAAP EPS* $10.77-$10.84 $5,790-$5,830 (21-22% y/y) (14% - 15% y/y) $5,082 $8.90 $4,204 $6.84 $3,685 $3,361 $3,121 $5.55 $4.56 $3.91 FY18 FY19 FY20 FY21 FY22 FY23E* FY18 FY19 FY20 FY21 FY22 FY23E* Recurring revenue model with $7.3B Strong financial execut
Slide 27: Cash Flow & Capital Allocation
Cash Flow & Capital Allocation Operating Cash Flow (M) Stock Repurchases (M) $1,100 $1,739 ~$1,650 $1,493 $788 $991 $606 $801 $400 $329 $424 $242 FY18* FY19 FY20 FY21 FY22 FY23E** FY18 FY19 FY20 FY21 FY22 FY23 YTD • Roughly tracks EBITDA less cash taxes on • Repurchased ~$3.5B in stock since 2018 mu
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Earnings Per Share – Full Fiscal Year 2023 Targets Range for Fiscal Year Ending October 31, 2023 Low High Target GAAP earnings per diluted share attributed to Synopsys $ 7.44 $ 7.60 Adjustments: Amortization of intangible assets 0.67 0.64 Stock compensation 3.77 3
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1)(2) Operating Margin – Midpoint of Fiscal Year 2023 Targets Twelve Months Ending October 31, 2023 At midpoint of revenue and expense guidance ranges GAAP operating margin 21.7% Amortization of intangible assets 1.8% Stock compensation 10.1% Acquisition-related item
Slide 30: Environment, Social, Governance Highlights
Environment, Social, Governance Highlights Building a Smart Future Together Synopsys’ Smart Future ESG strategy provides a focus and structure for how we manage our own operational impact and influence others around us to create a better world. © 2023 Synopsys, Inc. 30
Slide 31: Synopsys 2022 ESG Progress Highlights
Synopsys 2022 ESG Progress Highlights Environment • Our low-power electronic design automation (EDA) solutions allow our customers to achieve an additional 25% power reduction for their systems-on-chip (SoCs) • Developed new Greenhouse Gas (GHG) emissions reduction targets for review and validation
Slide 32: Thank You
SyNOPsys' Silicon to Software”