Investor Meeting Presentation

Synopsys Investor Meeting
Lisa Ewbank
VP, Investor Relations
September 17, 2015
© 2015 Synopsys, Inc.
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Forward-Looking Statements
This presentation contains forward-looking statements under the safe harbor provisions of Section 21E of
the Securities Exchange Act of 1934, including statements regarding projected financial results and longterm growth rates. For a discussion of important factors that could cause actual results to differ materially
from those in such statements, see the section entitled “Risk Factors” in Synopsys’ most recent Quarterly
Report on Form 10-Q and Annual Report on Form 10-K.
Regulation G
In addition to financial results prepared in accordance with Generally Accepted Accounting Principles, or
GAAP, this presentation will also contain certain non-GAAP financial measures. Except for certain
forward-looking non-GAAP financial measures for which a reconciliation is not possible without
unreasonable efforts, reconciliations of the non-GAAP financial measures contained in this presentation or
given orally to their most comparable GAAP measures are included in the third quarter fiscal 2015
earnings release and financial supplement, dated August 19, 2015, and available on Synopsys' website at
www.synopsys.com/Company/InvestorRelations/Pages/FinancialNews.aspx.
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Agenda
Aart de Geus, Chairman and co-CEO
Synopsys Overview and Strategy
Dave DeMaria, VP, Corporate Marketing
2015 New Product Highlights
Andreas Kuehlmann, SVP and GM, Software Integrity Group
Synopsys’ Software Quality & Security Strategy
Q&A
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Synopsys Overview and Strategy
Aart de Geus, Chairman and co-CEO
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Revenue
TTM Rev.: $2,194M
'05
'06
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'14
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• New TAM:
 Emerging leader
Revenue
SW Integrity
• #2 in market
segment
• Broad, high-quality
portfolio
IP
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'06
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'07
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• Industry Leader
• Solid profitability and
cash generation
• Committed to building
long-term shareholder
value
• Market segment
leader
• Technology leader
• New products
EDA
TTM Rev.: $2,194M
• Diversifying into
higher-growth adjacency
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SW
HW
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SW
SW
SW
SW
HW
HW
HW
SW
HW
HW SW
HW
SW
SW
HW
HW
SW
HW
SW
SW
SW
HW
HW
HW
SW
SW
HW
SW
HW
SW
HW
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HW
“Internet of Things”
The Apps
SW
SW
SW
HW
HW
SW
HW
SW
HW
HW SW
The Cloud
HW
SW
SW
HW
HW
SW
The Fog
HW
The Edge
SW
SW
SW
HW
HW
HW
SW
SW
HW
SW
HW
SW
HW
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HW
“Internet of Things”
“Smart Everything”
Wearables
Health
Smart
Homes
Smart
Cities
Automotive
Industrial
Automation
Finance
“Internet of Things”
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“Smart Everything”
Wearables
Health
Smart
Homes
Smart
Cities
Automotive
Industrial
Automation
Finance
“Internet of Things”
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“Smart Everything”
Software
Integrity
Verification
Continuum
IC Compiler II
Advanced IP
“Internet of Things”
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2015 New Product Highlights
Dave DeMaria, VP, Corporate Marketing
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Software
Integrity
Verification
Continuum
IC Compiler II
Advanced IP
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Optimized IP Solutions…for IoT
Battery
IoT
Devices
Energy Harvesters
Software
Sensors
Processor(s)
Storage
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RF
Optimized IP Solutions…for IoT
• Broadest IP portfolio
IoT Platform
IoT
Devices
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Interface &
Analog IP
Processors
Sensor
Subsystem
Memories &
Libraries
• Recent acquisitions
add critical IP
Security IP
Bluetooth
• Pre-validated IoT
platform through
TSMC collaboration
Optimized IP Solutions…for Automotive
ISO 26262 Automotive Safety Package
• Automotive Safety
Certification
Energy
Batte
Automotive Platform
Harvesters
ry
Sensors
Interface
&
Analog IP
Actuators
Sensor
Subsystem
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Software
Processors Security IP
Processor(s)
Storage
Memories &
Libraries
• Broadest IP Portfolio
RF
Bluetooth
• ASIL B Ready &
AEC-Q100 tested
Software
Integrity
Verification
Continuum
IC Compiler II
Advanced IP
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FinFET Designs Growing Rapidly
90nm
~240
65/55nm
FinFET
45/40nm
32/28nm
500
450
400
350
300
250
200
150
100
50
0
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14/16/20/22nm
10nm
7/5nm
FinFET Designs
>95%
Rely on Synopsys
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Synopsys IC Compiler II: Game-Changer in Digital Design
V
10X
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Productivity
Synopsys IC Compiler II: Staying Ahead
10X
ICC II
Throughput
Competitor
ICC I
Earlier-to-market
Competitor
Before ‘14
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Industry-leading
performance
‘14
‘15
Time
A Year Later… Customers Achieving Game-Changing Results
5X Faster
< 1 day
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A Year Later… Customers Achieving Game-Changing Results
5X Faster
< 1 day
10X Faster
< 1 day
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A Year Later… Customers Achieving Game-Changing Results
5X Faster
< 1 day
10X Faster
< 1 day
3-14X Faster
Many designs
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A Year Later… Customers Achieving Game-Changing Results
5X Faster
< 1 day
10X Faster
< 1 day
3-14X Faster
Many designs
4-6.5X Faster
Better QoR
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Fastest Product Ramp-up in Our History
4 designs
> 100 designs!
16/14nm
10nm
117
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Production
Designs
Completed
Tapeouts
42
18
Active
Customers
Process
Nodes
28nm 40nm
Early in Multi-year
Upgrade Cycle
SNUG 2014
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Sept. 2015
Software
Integrity
Verification
Continuum
IC Compiler II
Advanced IP
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Exploding Verification Complexity
200M+
CPUs
GPUs
Image
Processor
HD Video
Processor
USB
OTG
UART
MIPI
NAND
Flash
SPI
SDIO
Display
Mobile Security
DDR
Engine
Gates
HDMI
I 2S
I 2C
25+
IPs
1M+
Lines of SW
Manage Complexity
&
HW-SW Verification
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Verification Continuum: Game-Changing Platform
VCS®
Simulation
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80% of Advanced
Designs use Synopsys
Verification Continuum: Game-Changing Platform
Virtual Prototyping
#1
Debug & Coverage
#1
#1
Static
& Formal
VCS®
Simulation
#1
Emulation
Physical
Prototyping
Unified Debug
Fastest Engines
Unified Compile
VIP, Models & Databases
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A Year Later…Verification Continuum
#1
Static
& Formal
Virtual Prototyping
#1
Debug & Coverage
#1
#1
VCS®
Simulation
#1
Emulation
Physical
Prototyping
• Acquired Atrenta
Unified Debug
Fastest Engines
Unified Compile
VIP, Models & Databases
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A Year Later…Verification Continuum
Virtual Prototyping
~200X
faster
#1
HW-SW verification
Debug & Coverage
#1
Static
& Formal
#1
VCS
Simulation
#1
#1
Emulation
Physical
Prototyping
Unified Debug
Fastest Engines
Unified Compile
VIP, Models & Databases
~5MHz
boot Linux
in minutes
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• Acquired Atrenta
• New technology and
strong growth in
Emulation
A Year Later…Verification Continuum
Synopsys’ New HAPS-80 FPGA-Based Prototyping
Solution Delivers Up to 100 MHz System Performance
Virtual Prototyping
#1
• Acquired Atrenta
MOUNTAIN VIEW, Calif., Sept. 16, 2015
Debug & Coverage
#1
Synopsys ProtoCompiler
#1
Static
& Formal
#1
VCS
Simulation
#1
Emulation
Unified Debug
100 MHz
Physical
Fastest Engines
1.6B gates
Prototyping
Unified Compile
VIP, Models & Databases
®
HAPS -80
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• New technology and
strong growth in
Emulation
• Next generation
Prototyping
A Year Later…Verification Continuum
#1
Static
& Formal
Virtual Prototyping
#1
Debug & Coverage
#1
#1
VCS®
Simulation
#1
Emulation
Physical
Prototyping
• Acquired Atrenta
Unified Debug
Fastest Engines
Unified Compile
VIP, Models & Databases
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• New technology and
strong growth in
Emulation
• Next generation
Prototyping
Synopsys’ Software Quality & Security Strategy
Andreas Kuehlmann, SVP and GM, Software Integrity Group
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Software
Integrity
Verification
Continuum
IC Compiler II
Advanced IP
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Shifting Concerns for SW Product Liability
From “Blue Screen of Death” to “Hacked Car Driving Off the Road”
1980’s
1990’s
Standalone SW Applications
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2000’s
Internet and WWW
2010’s
SW Controlled Devices
Shifting Concerns for SW Product Liability
From “Blue Screen of Death” to “Hacked Car Driving Off the Road”
1980’s
1990’s
Standalone SW Applications
Quality
2000’s
Internet and WWW
Quality
Security
2010’s
SW Controlled Devices
Quality
Security
Safety &
Privacy
$
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$$ $$
$ $ $ $ $ $ $ $ $
Software Megatrends
Lines of Code
400M
Size of Applications Continues to Grow
100M
40M
145K 2.3M
Apollo 11
1969
Windows
1992
50K
Windows
2009
Source: Information is Beautiful
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Auto
1981
Auto
2014
SNPS
Software Megatrends
Size of Applications Continues to Grow
Worldwide SW Developer Population
(in million)
30
25
22
23
24
25
20
21
2015
2016
2017
2018
2019
2020
Number of Developers Increases Steadily
20
15
10
5
0
APAC
EMEA
NAM
LATAM
Source: Evans Data Corp. 2015 Global Developer Population Survey
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Software Megatrends
Quality & Security Tools Market (~$B)
1.6
1.4
1.3
1.2
1.5
Size of Applications Continues to Grow
1.2
Number of Developers Increases Steadily
0.9
0.7
0.6
0.4
Total Market Growing ~20%, Security Growing ~30%
2012
2013
Security
2014
Quality
Source: VDC, Gartner, SNPS research
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2015
2016
Software Megatrends
HealthCare
FSI
Privacy
Size of Applications Continues to Grow
Number of Developers Increases Steadily
Total Market Growing ~20%, Security Growing ~30%
Automotive
Compliance Regulations Start Emerging
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Application Security at a High Level
Development
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Deployment
Production
Application Security at a High Level
Development
Deployment
Security Built In
Security Penetration Testing
• Automated testing tools
used in development and
before an app is released
• Highly scalable
Size & Growth
~$1B
~30%
• Human-led testing post
development but before
installation & production
• Not scalable
Production
Size & Growth
~$2B
~15%
Real Time Security Detect and Defend
• Automated protection
tools used postdevelopment and after
an app is released
• Limited scalability and
“leaky”
Size & Growth
~$12B
~7%
Representative
Vendors
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Source: VDC, Gartner, SNPS research
Our Business Focus
Development
Quality
Deployment
Production
Security
• Built-in quality and security during development
Safety &
Privacy
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− Quality and security are inseparable
− Safety and privacy = whole new ballgame
Synopsys Software Integrity: Growing the Business
Acquired in February 2014
Organic Development
• Broader language coverage for enterprise needs
• Compliance coverage for vertical market penetration
Acquired in April 2015
Expand into Dynamic Security Testing
• World-leading fuzzing technology covering more than 250 protocols
• Software Component Analysis for finding known security vulnerabilities
Acquired in May 2015
Expand into Dynamic Web Application Security
• Leading in Interactive Application Security Testing
• Focus on moving security to existing QA process
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Growing the Business: Field Execution
Trusted Relationship with
Existing Customers
• Leveraging core Synopsys
sales team to sell to
embedded SW customers
Dedicated Enterprise
Sales Team
• Focused on enterprise
customers in key verticals
Culture of Close Customer Collaboration
Strong International Presence
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Mobile / Consumer Devices
Enterprise Networking / ISV
High Reliability Devices
Financial Services
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Growing the Business: Driving Software “Sign-Off”
Collaboration with Underwriter Laboratories on Industry-First Cybersecurity Assurance Program
Synopsys to Unveil Cybersecurity Collaboration with UL at
CodenomiCON USA 2015
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Growing the Business: Industry Recognition
6 August 2015
G00268424
*Gartner "Magic Quadrant for Application Security Testing" by Neil MacDonald, Joseph Feiman. August 6, 2015.
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 Gartner document is available upon request from Synopsys.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only
those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research
organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this
research, including any warranties of merchantability or fitness for a particular purpose.
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Ability to Execute
Synopsys Positioned as Visionary in 2015 Magic Quadrant for Application Security Testing
Challengers
Leaders
Niche Players
Visionaries
Completeness of Vision
As of August 2015
Growing the Business: Industry Recognition
Synopsys Provides 4 Critical Technologies in Forrester’s TechRadar for Application Security
Forrester Research, Inc.
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Thank You
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