Synopsys, Inc. · NASDAQ:SNPS
Synopsys — Investor Presentation (August 2022)
49 slides from Synopsys's investor presentation, August 2022
Slide 1: Corporate Overview for Investors
Corporate Overview for Investors AUGUST 2022
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 and technology; business and market outlook, opp
Slide 3: Synopsys: The Market & Technology Leader
Synopsys: The Market & Technology Leader FY21 F Y 2 2 Ta r g e t s ( 1 ) Broad Product Portfolio Revenue: $4.20B $5.06B - $5.09B Growth Rate: 14.1% 20% - 21% Electronic Design Non-GAAP ~33.0%* 30.5% Automation Operating Margin: *Midpoint of range (EDA) Non-GAAP EPS: $6.84 $8.80 - $8.85 Semiconductor
Slide 4: Synopsys: The Market & Technology Leader
Synopsys: The Market & Technology Leader Electronic Design Semiconductor Software Automation IP Integrity ~35 years of investment >20 years ~8 years and execution ~25% of revenue ~10% of revenue ~65% of revenue Emerging Leader, Market Leader #2 IP Vendor Broadest Portfolio Synopsys Confidential Info
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 • EDA:
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 Synopsys Confidential Information © 2022 Synopsys, Inc. 6
Slide 7: Global Value Chain – 2021
Global Value Chain – 2021 EDA & IP – At the Heart of Accelerating Electronics Innovation EDA & IP $14.3B Embedded Software $12.8B Foundry $110B Semiconductors $615B Electronic Systems $1,850B Sources: ESD Alliance, Ipnest, MarketsandMarkets, IC Insights Synopsys Confidential Information © 2022 Synop
Slide 8: Blue Chip, Diversified Customer Base
Blue Chip, Diversified Customer Base Semiconductors Systems Software Developers • Semi R&D (including EDA) is a • >40% 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: Enabling and Leveraging the Potential of AI
Enabling and Leveraging the Potential of AI Design and Verification Tools for AI Processors • Multiple years of collaboration alongside AI pioneers – deep understanding of AI design implications and challenges • Verification solutions from architecture to simulation to emulation and prototyping • Di
Slide 11: Enabling and Leveraging the Potential of AI
Enabling and Leveraging the Potential of AI DSO.ai – World’s First Autonomous Design Space Optimization Settings Breakthrough Reinforcement Capable of searching trillions of design Learning permutations for best PPA solutions Hierarchy Flow Fast Fully-integrated with the Digital Design Family Ramp-U
Slide 12: Enabling and Leveraging the Potential of AI
Enabling and Leveraging the Potential of AI IP Solutions Designed Algorithm Inference Model Optimization for AI Applications ARC EV Optimization Processors Processors • Proven IP solutions accelerate Memory Bandwidth/ Video Input time-to-market Storage Capacity HBM2 USB/eDP DDR/LPDDR • Memory/interf
Slide 13: Automotive – A Case Study
Automotive – A Case Study CHIPS 4 Billion transistors SYSTEMS Infotainment, GPS, Drivetrain, Sensors SOFTWARE >150M Lines of Code per vehicle SECURE ARTIFICIAL INTELLIGENCE Big Data, Capture, Analyze, Decision Making AUTONOMOUS DRIVING Systems of Systems OWNERSHIP & INFRASTRUCTURE Entire Ecosystem S
Slide 14: New Electronics Architecture Required
New Electronics Architecture Required Integrated Compute and Smart Sensor Architecture Requires Redesign DOMAINS • Integrated Controllers per Domain Gateway Powertrain ADAS Comfort Infotainment/V2X • Sensor Fusion • Connectivity and upgradeability • Highest reliability, security and safety FUNCTIONA
Slide 15: 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 Synopsys Confidential Information © 2022 Synopsys, Inc. 17
Slide 16: 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 17: Leader in EDA
LEADER IN EDA • Market and technology leader in EDA, the tools and technologies used to design semiconductor chips and systems ~$8.8 billion market*; generally tracks semiconductor R&D spend over time • Growth drivers: all aspects of chip & system complexity • All leading semiconductor companies in
Slide 18: #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 19: Synopsys Fusion Compiler
Synopsys Fusion Compiler ™ 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 • Only single product on market with innovative 3DIC Compiler next-generation integration of synthesis, place DIGITAL DESIGN & route and key signoff technologies RTL Architect • Built with market-leading prod
Slide 20: Synopsys Custom Design Family
Synopsys Custom Design Family S Y N O P S Y S C U S T O M D E S I G N F A M LY Innovative Industry anchors HSPICE, CustomSim, FineSim Products Custom Compiler Next-generation custom layout Custom Compiler PrimeSim Competitive Flexible, open environment Differentiation Faster custom design closure Si
Slide 21: #1 in Verification: Synopsys Verification Family
#1 in Verification: Synopsys Verification Family S Y N O P S Y S V E R I F I C AT I O N F A M I LY Planning & Coverage Complete platform with #1 products Best-in-Class Verdi in all categories, hardware-based Verification and software-based VC SpyGlass Fastest Highest-performance engines Virtualizer
Slide 22: Verification Hardware: ZeBu Server Emulation System
Verification Hardware: ZeBu ® Server 4 Emulation System Leading System for Software Bring-up Only modern system to allow software-on-hardware validation Industry’s Fastest Emulation System 2X higher performance Industry’s Largest Capacity Scalable to 19B+ gates Industry’s Lowest Total Cost of Owners
Slide 23: Introducing Application-Specific Verification Hardware
Introducing Application-Specific Verification Hardware ZeBu EP1: Industry’s First 10 MHz Emulator Accelerates hardware/software verification for SoCs up to 2 billion gates 3-4x higher performance vs competition Supports at-speed, full-visibility debug and all emulation use cases ZeBu EP1 ZeBu Empowe
Slide 24: Verification Hardware: HAPS-100 Prototyping System
Verification Hardware: HAPS-100 Prototyping System Industry’s Highest Performance Prototyping System 20-50 MHZ for complex SoC software development and system validation Industry’s Highest Prototyping Debug Productivity 4x higher debug performance vs HAPS-80 Enterprise and Ecosystem Scalability HAPS
Slide 25: 3DIC Compiler: Unified Exploration-to-Signoff Platform
3DIC Compiler: Unified Exploration-to-Signoff Platform Highly Integrated, Scalable Platform 3DIC COMPILER PLATFORM System-of-chips integration over 100s of Billions of transistors Leveraging common data-model & tech files for 2D and 3D designs Architectural Planning Abstraction, 2.5D/3D Early What-i
Slide 26: Synopsys Silicon Lifecycle Management Family
Synopsys Silicon Lifecycle Management Family Monitor, manage and optimize S Y N O P S Y S S I L I C O N L I F E C Y C L E M A N A G E M E N T F A M I LY New the performance, health and Insights security of the chip from initial Design Product Test and qualification to in-field Calibration In-Field R
Slide 27: Synopsys Cloud – Industry's First SaaS Cloud Solution
Synopsys Cloud – Industry’s First SaaS Cloud Solution BYOC SaaS B r i n g Yo u r O w n C l o u d Software-as-a-Service Customer Uses Own Public Cloud Synopsys Provides EDA Tools & Infrastructure Customer Cloud Cloud Cloud Vendor(s) BROWSER METERING Engineer EDA & CAD Apps Portal | Pay-Per-Use Portal
Slide 28: Leader in Semi IP
Leader in Semi 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 – ~$5.5 billion market*, benefitting from our customers’ move to outsourcing more and more complex IP • IP reuse reduces our customer
Slide 29: Broadest and Most Comprehensive IP Platform
Broadest and Most Comprehensive IP Platform SYNOPSYS IP PORTFOLIO Design Solutions Growing IP >$1B in Revenue DDR/HBM PCIe HDMI/DP USB 10/56/112G XSR/UCIe C/D-PHY M-PHY Demand @ Double-digit growth PHY PHY PHY PHY PHY PHY CPUs Security MPUs DDR/HBM PCIe HDMI/DP USB Ethernet Die-to-Die CSI UFS contro
Slide 30: 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 Synopsys Confidential Information ©
Slide 31: Comprehensive IP Solutions for Cloud Computing SoCs
Comprehensive IP Solutions for Cloud Computing SoCs DesignWare® Interface, Foundation Servers Networking and Processor IP for Cloud Applications Interposer/Package 112G 112G 112G D2D D2D D2D D2D DDR5 DDR5 DDR5 DDR5 • Improved power efficiency • Increasing data volume Control for high-density and dri
Slide 32: Leader in Software Integrity
Leader in Software Integrity Entered the software security & quality space in 2014 • Assembled and developed the broadest portfolio of solutions on the market; $449 million TTM revenue • Solutions allow organizations to identify and fix security and quality defects throughout software development li
Slide 33: Software Security & Quality Market
Software Security & Quality Market • Evolving, nascent market • Growth drivers: TAM 1: ~$4.5-6.5B - Omnipresence of software - Widespread connectivity exacerbates security issues - Significant business risk from breaches SAM: - Large development teams ~$2-2.5B • Market growth rate: mid-teens % • Syn
Slide 34: The Most Complete Portfolio in the Industry
The Most Complete Portfolio in the Industry Software Static Analysis Dynamic Analysis Security Services Composition Analysis • Find critical defects and • Find known vulnerabilities • Safely scan production • Strategic analysis to build vulnerabilities in code in open-source & 3rd applications Softw
Slide 35: Synopsys Completes Acquisition of WhiteHat Security
Synopsys Completes Acquisition of WhiteHat Security • In Q3’22, Synopsys completed the acquisition of WhiteHat Security, a leading provider of application security testing SaaS • Provides significant SaaS capabilities and market-segment-leading DAST technology to expand our broad application securit
Slide 36: Build Trust in Your Software
Build Trust in Your Software Polaris Code Sight Intelligent Orchestration Code Dx SAST/ SCA/ IAST/ 3rd Party Products Coverity Black Duck Seeker Fuzzing/ DAST/ eLearning Open Source Products Defensics WhiteHat Security Testing Services Strategy, programs, and services Comprehensive Developer-centric
Slide 37: Synopsys is a Leader in Application Security Testing
Synopsys is a Leader in Application Security Testing Recognized as a Leader for the 6 th year in a row 2022 Gartner Magic Quadrant for Application Security Testing Download a free copy of the 2022 Magic Quadrant for Application Security Testing. This graphic was published by Gartner, Inc. as part of
Slide 38: Recognized Leader in End-to-End Application Security
Recognized Leader in End-to-End Application Security Synopsys is the only vendor recognized as the leader in both SAST & Open Source (SCA) Forrester Wave TM : Static Forrester Wave TM : Software Application Security Testing, 2021 Composition Analysis, 2021 Source: Forrester (January 2021) Source: Fo
Slide 39: 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 Synopsys Confidential Information © 2022 Synopsys, Inc. 43
Slide 40: Excellent Financial Execution
Excellent Financial Execution Revenue (M) $5,060-$5,090 Non-GAAP EPS* (20% - 21% y/y) $8.80-$8.85 (~29% y/y) $4,204 $3,685 $6.84 $3,361 $3,121 $5.55 $2,725 $4.56 $3.91 $3.42 FY17 FY18 FY19 FY20 FY21 FY22E** FY17 FY18 FY19 FY20 FY21 FY22E** Recurring revenue model with $7.1B non- Strong financial exe
Slide 41: Cash Flow & Capital Allocation
Cash Flow & Capital Allocation Operating Cash Flow (M) Stock Repurchases (M) $788 $1,600-$1,650 $757 $1,493 $991 $801 $400 $400 $329 $635 $242 $424 FY17 FY18* FY19 FY20 FY21 FY22E FY17 FY18 FY19 FY20 FY21 FY22 YTD • Roughly tracks EBITDA less cash taxes on • Repurchased ~$2.9B in stock since 2017 mu
Slide 42: Synopsys Corporate Social Responsibility
Synopsys Corporate Social Responsibility Working Together for a Smart Future Environment Our Smart Future CSR program provides a focus and S yn o p s ys Human Cyber Impact Capital Security structure for how we address S M A RT FUTURE both our own operational impact S yn o p s ys Industry Supply Infl
Slide 43: Synopsys ESG Progress Highlights
Synopsys ESG Progress Highlights Scope 1 and 2 GHG emissions • Pledged to reduce by 25% by 2024 over 2018 baseline, in line with Paris Agreement’s goal to limit global temperature rise within 1.5 degrees Celsius above pre-industrial levels. • Entered into one of the largest corporate aggregated clea
Slide 44: Synopsys ESG Progress Highlights
Synopsys ESG Progress Highlights Security • Formally adopted industry-recognized frameworks to structure, test and assess the rigor of our cybersecurity and product security practices. • Our leading Software Integrity business offers security-enhancing products and services that help enterprises bui
Slide 45: Market and Technology Leader, Solid Financials
Market and Technology Leader Electronic Design Automation Semiconductor Intellectual Property Software Security & Quality Solid Financials Recurring revenue model Large, non-cancellable backlog Excellent execution © 2022 Synopsys, Inc. 49
Slide 46: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Earnings Per Share – Full Fiscal Year 2022 Targets Range for Fiscal Year October 31, 2022 Low High Target GAAP earnings per diluted share $ 6.37 $ 6.49 Adjustments: Amortization of intangible assets 0.63 0.62 Stock compensation 3.01 2.96 Acquisition-related costs
Slide 47: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Operating Margin – Midpoint of Fiscal Year 2022 Targets Twelve Months Ending October 31, 2022 At midpoint of revenue and expense guidance ranges GAAP operating margin 21.4% Amortization of intangible assets 1.9% Stock compensation 9.2% Acquisition-related costs 0.
Slide 48: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Earnings Per Share – Full Fiscal Years 2017 to 2021 Actual Results ASC 605 ASC 605 ASC 606 ASC 606 ASC 606 FY2017 FY2018 FY2019 FY2020 FY2021 GAAP diluted net income per share $ 0.88 $ 2.82 $ 3.45 $ 4.27 $ 4.81 Adjustments: Amortization of intangible assets 0.70 0.82
Slide 49: Thank You
SyNOPsys' Silicon to Software”