Slide 1: Corporate Overview for Investors
Corporate Overview for Investors November 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 FY23 FY24 Targets1, 2 Broad Product Revenue: $5.84B $6.57B – $6.63B Portfolio Growth Rate: 15.0% 12.4–13.5% Electronic Design Non-GAAP Operating Margin: 35.1% ~37.0%* Automation (EDA) *Midpoint of range Semiconductor Intellectual Non-GAAP Diluted EPS: $11.19
Slide 4: Synopsys: The Market & Technology Leader
Synopsys: The Market & Technology Leader Design Software Design IP Automation Integrity ~ 35 ~ 65% > 25 ~ 25% ~ 9 ~ 10% years of revenue years of revenue years of revenue Industry Leader, Market Leader #2 IP Vendor Broadest Portfolio © 2023 Synopsys, Inc. 4
Slide 5: Long-term Financial Objectives
Long-term Financial Objectives1 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 • Design Au
Slide 6: Synopsys: Leading Silicon to Systems Design Solutions
Synopsys: Leading Silicon to Systems Design Solutions 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—2023E
Global Value Chain—2023E EDA & IP—At the Heart of Accelerating Electronics Innovation EDA & IP Embedded Software Foundry Semiconductors Electronic Systems $17.8B $15.9B $125B $569B $1.88T Sources: ESD Alliance, Ipnest, MarketsandMarkets, IC Insights (2023) © 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 • Key function across all top investment priority for semi from systems companies industries: semis and systems, and system customers in all to enterprises in s
Slide 9: Dynamic Change in Many Markets Drives Opportunity
Dynamic Change in Many Markets Drives Opportunity HPC, Data Center (AI accelerators) Networking Mobile/5G Automotive AR / VR Healthcare Industrial Memory PC/Gaming Enterprise Financial Government & Automation Software Services Aerospace Silicon Proliferation Software-defined Systems Artificial Intel
Slide 10: Synopsys: Leading Silicon to Systems Design Solutions
Synopsys: Leading Silicon to Systems Design Solutions Uniquely Positioned for Growth and Stability Robust End Markets Clear Technology Leadership Financial Strength and Growth © 2023 Synopsys, Inc. 10
Slide 11: Synopsys at the Heart of Chip Design, From Silicon to Systems
Synopsys at the Heart of Chip Design, From Silicon to Systems Design Solutions Software Software: Application security IP: Broadest portfolio of interface, Software & quality testing foundation & physical IP Systems Systems System: HW/SW verification, Silicon: Tools for process optimization, virtual
Slide 12: Leader in EDA
Leader in EDA • Market and technology leader in EDA, the tools and technologies used to design semiconductor chips and systems – ~$10.6 billion market*; generally tracks semiconductor R&D spend over time • Growth drivers: all aspects of chip and system complexity • All leading semiconductor companie
Slide 13: Synopsys.ai: Industry's First Full-Stack, AI-Driven EDA Suite
Synopsys.ai™: Industry’s First Full-Stack, AI-Driven EDA Suite For design, verification, testing & manufacturing of digital and analog chips Achieve power, performance and Design Space area (PPA) targets, and boost Optimization productivity with DSO.ai Verification Faster functional testing closure,
Slide 14: Synopsys Digital Design
Synopsys Digital Design SYNOPSYS DIGITAL DESIGN FAMILY • #1 Anchors: synthesis, P&R, signoff SYSTEM DESIGN Fusion • Fusion of algorithms, engines, data model 3DIC Compiler Architecture • Two fusion types: test and signoff DIGITAL DESIGN RTL Architect • Industry-unique Fusion Compiler Test Fusion Inn
Slide 15: 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 Best datacenter scalability through power and footprint © 2023 Synopsys, Inc. 15
Slide 16: 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 Exploration Complete architecture-to-signoff PHY Delivers up to & Creation solution in a consolidated 4Tbps bandwidth in a Implementation user environment Controller mu
Slide 17: 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 – ~$7.2 billion market*, benefitting from our customers’ move to outsourcing more and more complex IP • IP reuse reduces our custom
Slide 18: Broadest and Most Comprehensive IP Portfolio
Broadest and Most Comprehensive IP Portfolio SYNOPSYS IP PORTFOLIO Foundation IP, Software Broadest analog, interfaces, Portfolio security, processors, DDR/HBM PCIe HDMI/DP USB 10G to Die-to-Die subsystems C/D-PHY M-PHY PHY PHY PHY PHY 224G PHY PHY CPUs Safety MPUs Security DDR/HBM PCIe HDMI/DP USB
Slide 19: 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. 19
Slide 20: Leader in Software Integrity
Leader in Software Integrity • Assembled and developed the broadest portfolio of solutions on the market; >$0.5 billion TTM revenue • Solutions that enable organizations to manage application security, quality and compliance risks at the speed their business demands • Approximately $2.5–3 billion se
Slide 21: Software Integrity Portfolio
Software Integrity Portfolio Static Analysis Open Source Analysis Interactive AST Fuzzing Software Coverity Black Duck Seeker Defensics Developer Plug-in AST Orchestration Correlation/Prioritization Code Sight Intelligent Orchestration Software Risk Manager SaaS Polaris Software Dynamic Analysis Sta
Slide 22: The Recognized Leader in Application Security Testing
The Recognized Leader in Application Security Testing Magic Quadrant for Forrester Wave™: Forrester Wave™: Application Security Testing Static Application Security Testing Software Composition Analysis Sources: Gartner, Forrester. © 2023 Synopsys, Inc. 22
Slide 23: Synopsys: Leading Silicon to Systems Design Solutions
Synopsys: Leading Silicon to Systems Design Solutions Uniquely Positioned for Growth and Stability Robust End Markets Clear Technology Leadership Financial Strength and Growth © 2023 Synopsys, Inc. 23
Slide 24: Excellent Financial Execution
Excellent Financial Execution Revenue (M) $6,570 – $6,630 Non-GAAP EPS $13.33 – $13.41 (12.4–13.5% y/y) (19.1–19.8% y/y) $5,843 $11.19 $5,082 $4,204 $8.90 $3,685 $3,361 $6.84 $5.55 $4.56 FY19 FY20 FY21 FY22 FY23 FY24E* FY19 FY20 FY21 FY22 FY23 FY24E* Recurring revenue model with $8.6B Strong financi
Slide 25: Cash Flow & Capital Allocation
Cash Flow & Capital Allocation Operating Cash Flow (M) Stock Repurchases (M) $1,739 $1,703 $1,206 $1,100 $1,493 ~ $1,400 $788 $991 $801 $329 $242 FY19 FY20 FY21 FY22 FY23 FY24E* FY19 FY20 FY21 FY22 FY23 • Roughly tracks EBITDA less cash taxes on multi year basis • Repurchased ~$3.7B in stock since 2
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation1 Earnings Per Share—Full Fiscal Year 2024 Targets Range for Fiscal Year Ending October 31, 2024 Low High Target GAAP earnings per diluted share attributed to Synopsys $ 9.07 $ 9.25 Adjustments: Amortization of intangible assets 0.69 0.66 Stock compensation 4.90 4.82 T
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation1, 2 Operating Margin—Midpoint of Fiscal Year 2024 Targets Twelve Months Ending October 31, 2024 At midpoint of revenue and expense guidance ranges GAAP operating margin 23.9 % Amortization of intangible assets 1.6 % Stock compensation 11.5 % Target non-GAAP operating
Slide 28: Smart Future ESG Strategy
Smart Future ESG Strategy Our Smart Future ESG strategy provides a framework to assess and manage the ESG matters that are relevant to our business, generate value for our stockholders, and at the same time, make meaningful progress with respect to environmental and social issues within our ecosyste
Slide 29: Synopsys ESG Progress Highlights
Synopsys ESG Progress Highlights Environment • We are committed to taking climate action to limit global warming to 1.5ºC above preindustrial levels by reducing our company-wide greenhouse gas (GHG) emissions and mitigating our environmental impacts. Recent efforts include: – Obtaining validated Sci
Slide 30: Thank You
Thank You