Cadence Design Systems, Inc. · NASDAQ:CDNS
Cadence Design Systems — Investor Presentation (February 2023)
32 slides from Cadence Design Systems's investor presentation, Feb 13, 2023
Slide 1: Cadence Design Systems, Inc. Company Overview Presentation Q4 2022
Cadence Design Systems, Inc. Computational Software for Intelligent System Design Company Overview Presentation Q4 2022
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 ~10,500 COMPUTATIONAL INNOVATION: CREATED EMPLOYEES SOFTWARE FOR BY ENGINEERS, WORLDWIDE FOR ENGINEERS Intelligent System Design™ $900M Industry Q4 2022 REVENUE SOFTWARE AND 26 PROGRAMMING GLOBAL DEV
Slide 5: A Great Place to Work Around the Globe
A Great Place to Work Around the Globe Current as of Oct 24, 2022 5 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 6: Developing and Deploying Computational Software
Developing and Deploying Computational Software R&D FIELD PATENTS EMPLOYEES GLOBAL ENGINEERS ENGINEERS WORLDWIDE DEVELOPMENT CENTERS 6 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 7: People and Sustainability
Cadence People and Sustainability Innovation Net-Zero GHG Cadence Giving Diversity, Equity, Launched 13 significant, Reduced Scope 1 and 2 emissions Foundation and Inclusion innovative products in 2021 by 32% in 2021 over 2019 baseline Launched the Cadence Giving Our U.S. Black, Latinx, across all b
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 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 10: Drivers of Convergence in Computational Software
Drivers of Convergence in Computational Software Explosion of Data and AI Computational Needs System Design AI / ML Algorithm, SW, Data Analytics Multiphysics, CFD, PCB Growing Cost, Complexity of Lack of Moore, CPU and Mechanical and Silicon Design IP and Chip EDA Software Performance Scaling Digit
Slide 11: Cadence Is Leading the Computational Software Convergence
Cadence Is Leading the Computational Software Convergence INTELLIGENT System Design AI / ML Algorithm, SW, Data Analytics SYSTEM Multiphysics, CFD, PCB DESIGN IP and Chip EDA Digital, Custom, System Verification, and Packaging Intelligent System Design™ Merger of EDA, system design, AI Pervasive int
Slide 12: System Design – Expanding Beyond Traditional EDA
Intelligent • The Intelligent System Design™ strategy drives System Design – growth in our core EDA and IP business, broadens our reach in system companies and targeted Expanding Beyond verticals, and guides expansion into newer Traditional EDA adjacent areas. • The foundation of the strategy contin
Slide 13: 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 13 © 2023 Cadence Design Systems, Inc. All rights reserve
Slide 14: 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 15: Recent Product Innovation and News
Recent Product Innovation and News 20+ significant products Pervasive Intelligence in the past 3 years • Integrity™ 3D-IC Platform for multi-chiplet design and advanced packaging • Cadence® Cerebrus™ Intelligent Chip Explorer 10X productivity, and 20% better PPA • Tensilica® AI Platform accelerators
Slide 16: Cadence Cerebrus: The Future of Intelligent Chip Design
Cadence Cerebrus: Productivity and Power, Performance The Future of Intelligent and Area (PPA) Revolution Chip Design • Unique reinforcement ML • Delivers up to 10X better productivity and 20% PPA improvements Automated RTL to GDS Full Flow Optimization • Delivers better PPA more quickly • Improves
Slide 17: Announcing Cadence Fidelity CFD Software
Announcing Cadence Fidelity CFD Software A new generation of performance and accuracy in multiphysics simulation Integrating the 2021 Fidelity™ CFD Software Target Industries Acquisitions Offers performance and accuracy for multiphysics Aerospace & simulation, and a suite of Defense CFD solutions Fi
Slide 18: Cadence OnCloud – A Complete SaaS and e-Commerce Platform
Cadence OnCloud – A Complete SaaS and e-Commerce Platform Instantaneous, flexible, secure, and scalable deployment Fast moving teams flexibly deploy best-in-class system design and multiphysics analysis technologies OnCloud Comprehensive SaaS and e-Commerce Frictionless Scalable Free Trials Online S
Slide 19: AI-Driven Design Analysis and Optimization
AI-Driven Design Analysis and Optimization AI for system analysis providing on average 10X faster design closure with fewer simulations System Design Optimality™ Optimized Performance Intelligent System Explorer Communication Channel Clarity™, Celsius™, B Pkg PCB Pkg B and Sigrity™ X In-Design Syste
Slide 20: Joint Enterprise Data and AI (JedAI) Platform
Cadence Joint Enterprise Data and AI (JedAI) Platform AI-Driven Verification AI-Driven Implementation … AI-Driven System Analysis Open APIs AI and Analytics Engines Design, Workflow, and Workload Data Wave Coverage Mined AI Cadence JedAI data data attributes models Platform* Reports Design and … Lay
Slide 21: Cadence AI-Driven Solutions
Cadence AI-Driven Solutions Cadence® Cerebrus™ Optimality™ AI-Driven Multidisciplinary Design Analysis Digital Implementation Full Flow and Optimization (MDAO) AI-Driven Verisium™ Xcelium™ ML Platforms AI-Driven Verification Platform Regression Simulation Cadence Joint Enterprise Data AI (JedAI) Pla
Slide 22: McLaren Formula 1 Team and Cadence Technology Partner
McLaren Formula 1 Team and Cadence Technology Partner Cadence named an Official Technology With Cadence’s innovative CFD software, Partner of the McLaren Formula 1 Team; McLaren can investigate optimal designs in enters a multi-year partnership less time with unprecedented reliability 22 © 2023 Cade
Slide 23: Cadence Acquires Future Facilities – The Digital Twin Company
Cadence Acquires Future Facilities – The Digital Twin Company 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 Electronics cooling (CFD*) 6Sigma – Virtual
Slide 24: Cadence Acquires Cascade Technologies
Cadence Acquires Cascade Technologies Extending our system innovation portfolio targeting high-fidelity CFD simulation Aerodynamics Reacting Flow Acquires • Leading technology experts with a complete software solution for high-fidelity computational fluid dynamics (CFD) simulation Aeroacoustics Heat
Slide 25: Applying Computational Software to Biosimulation
Applying Computational Software to Biosimulation • Leaders in molecular modeling and simulation • Industry’s first SaaS-based cloud-native platform • Customers include 19 of top 20 pharmaceutical companies Accelerating drug discovery with computational software Source: https://www.cadence.com/en_US/
Slide 26: Financial Performance
Financial Performance 26 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 27: 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 $0.00 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Free cash flow Notes: 1. Non-
Slide 28: Recurring Revenue Model
Recurring Revenue Model High visibility software revenue stream 1000 Revenue2 900 • Recurring revenue mix: ~85% for 2023 800 700 ($ millions) 600 • Backlog1: $5.8B (Q4 2022) 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 • 19% (2022/2021) Notes: 1. Backlog = Remaining Performance Obligatio
Slide 29: Diversified Business Across Products and Regions
Diversified Business Across Products and Regions Functional Verification Americas 12% 6% 25% China 17% Digital IC Design and 13% Signoff Other Asia 46% Custom IC Design and Simulation 18% 22% 28% EMEA System Design and Analysis 13% Japan IP 29 © 2023 Cadence Design Systems, Inc. All rights reserved.
Slide 30: 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% • Non-GAAP operating margin 36%1 (Q4 2022) 10% 5% 0% 2016 2017 2018 2019 2020 2021 2022 Notes: 1. Non-GAAP operating margin and non-GAAP EPS (excludes am
Slide 31: Cash Flow, Capital Structure, and Capital Allocation
Cash Flow, Capital Structure, and Capital Allocation Free cash flow generation • $1.119B (2022) Capital structure (Q4 2022) Free cash flow Stock repurchase 1200 1200 • Cash: $882M 1000 ($ millions) 1000 ($ millions) • ST credit facility1: $700M 800 800 600 600 • LT debt: $650M 400 400 200 200 Capita
Slide 32: © 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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