lisa ewbank vice president, investor relations accelerated initiative ip prototyping customized kits...

© 2014 Synopsys, Inc. All rights reserved. 1

Synopsys Investor Meeting

Lisa Ewbank

Vice President, Investor Relations

September 25, 2014


Agenda

Aart de Geus, Chairman and co-CEO

2014 New Product Highlights

John Chilton, SVP and GM, Coverity

Synopsys’ New TAM

Coverity Strategy


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 long-term 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.

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 2014 earnings release and financial supplement, dated

August 20, 2014, and available on Synopsys' website at

www.synopsys.com/Company/InvestorRelations/Pages/FinancialNews.aspx.

http://www.synopsys.com/Company/InvestorRelations/Pages/FinancialNews.aspx


2014 New Product Highlights

Aart de Geus

Chairman and co-CEO

September 25, 2014

EDA

• Market segment leader

• Technology leader

• New products

IP

• #2 in market segment

• Broad, high-quality portfolio

Software

• New TAM

$2

B

#1

• Industry Leader

• Solid profitability and cash

generation

• Diversifying into

higher-growth adjacency

• Committed to building

long-term shareholder value

Reven

ue

EPS

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14

Verification Continuum

Advanced IP IC Compiler II

Software

0

20

40

60

80

100Q

4'0

9

Q1

'10

Q2'1

0

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Source: Synopsys Global Technical Service

Tracking >150

FinFET designs

and tape-outs

worldwide.

Synopsys is

integral to

>95% of them.

FinFET 10 16 22 14

Source: Synopsys Global Technical Service

Tracking >150

FinFET designs

and tape-outs

worldwide.

Synopsys is

integral to

>95% of them.

FinFET 10 16 22 14

Tracking >150

FinFET designs

and tape-outs

worldwide.

Synopsys is

integral to

>95% of them.

FinFET 10 16 22 14

16 nm

Collaboration

10X New Place and Route Platform

Rebuild

New Infrastructure

Multi

Hier

Multi

Mode

Multi

Voltage Multi

Thread

Multi

View

Rethink

Timer Floor Plan

Clock Tree Opt.

New Engines

Reuse

Best of IC Compiler I

Linear Placer

Zroute

IC Compiler II

Users Report Great Productivity!

A

Placement Opt.

10X Faster

Clock Opt.

4X Faster

B

25M Instances:

< 4Hrs

Design Planning

10X Faster

C

Placement Opt.

8X Faster

Clock Opt.

2X Faster

D

Placement Opt.

6X Faster

Memory Needed:

3X Less

V 10X

Established Nodes

65 90 55 130 180

IC Compiler II

in Action

Manufactured

Taped-out

Active Design

Advanced Nodes

20 45 40 28

FinFET

10 16 22 14



Software

IP Accelerated Initiative

IP Prototyping

Kits

• Proven out-of-the–

box reference design

• Prototype IP in

ONE minute

IP Virtual

Development Kits

• Support for 64-bit

Linux on ARM

• Cut months from

software schedule

Broad, Silicon-Proven

DesignWare IP Portfolio

Expect More!

Customized

IP Subsystems

• IP subsystems &

custom integration

• Ease IP integration

into your SoC

CTL PHY

SoC

Logic

Sensor

Sub-

system

V 10X

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=v7u2a-zMLv_K4M&tbnid=niKYBD6jC5oyHM:&ved=0CAUQjRw&url=http://blogs.kenan-flagler.unc.edu/mba/2013/02/15/qualities-of-a-successful-mba-student/unc_ampersand_logo/&ei=4rqgU-GBK83boAS724C4Cw&bvm=bv.69137298,d.cGU&psig=AFQjCNEwx8L_WkdBUQwyDrtvPcBGohevxA&ust=1403128915151623



Software

Bu

gs F

ou

nd

per

Week

Project Time

Faster Time-to-Market

Bu

gs F

ou

nd

per

Week

Project Time

Virtual

Prototyping

FPGA

Prototyping

Emulation

Faster

Simulation

Static & Formal

Planning

Verification IP

Debug

Faster Time-to-Market

Bu

gs F

ou

nd

per

Week

Project Time

Virtual

Prototyping

FPGA

Prototyping

Emulation

Faster

Simulation

Static & Formal

Planning

Verification IP

Debug


V 3X

VIP, Models & Databases

Virtual Prototype

Emulation FPGA

Prototype Simulation

Static & Formal

Debug

Planning & Coverage

Industry’s Fastest

Industry’s #1

#1 #1 #1

#1

Fastest Engines

Verification

Continuum

Virtualizer ZeBu HAPS VCS VC Static & Formal

Verification Compiler

VCS VC Static & Formal

Debug

Planning & Coverage


Fastest Engines

Virtual Prototype

Emulation FPGA

Prototype Simulation

Static & Formal

Virtualizer ZeBu HAPS VCS VC Static & Formal

Verification Compiler

VCS VC Static & Formal

Verdi

Planning & Coverage


Fastest Engines

Unified Compile

with VCS

Unified Debug

with Verdi

Software

V 3X



Software

• Acquired Coverity for

$375M ($334M net of

cash acquired);

• Leading provider of

Software Quality, Testing

and Security Tools

• Natural adjacency and

expansion of our TAM

• LT growth opportunity

beyond our existing EDA

customer base

Synopsys Expands TAM


Coverity

John Chilton

SVP and GM, Coverity

September 25, 2014


Synopsys Customers Spending On SW $150M for Software – For One Chip

$0

$50

$100

$150

$200

$250

$300

65nm 45/40nm 28nm 20nm 16/14nm

Primary Design

Software Hardware

Co

st

($M

)

Source: IBS, Dec 2012, Feb 2013


“debugging”


Source: JP Morgan FactSet market data as of 11/23/2012 - updated with CY2013 estimated revenues (source: Company Reports, IPREO)

* Comverse Technology was replaced with Verint Systems.

Synopsys is the world’s 15th

largest software company

We Are Software Experts


Why Coverity? Synopsys 2004 View

What is Coverity?


Quality Improvement - 4 year time period Incoming defects per 1K Licenses


We Liked It So Much We Bought the

Company

Company Facts Financial Facts Customer Facts

• Founded in 2003

at Stanford Labs

• 300 employees

across 10 countries

• #1 in software

quality analysis -

IDC

• Over 1,100 world

class customers

• Over 75,000 happy

developers

• 5 billion lines of

code under

management

• ~$75M FY13

revenue

• 20%+ revenue

CAGR


The Economics of Testing

Coding CycleMinutes ... Hours

AutomatedQA Testing Cycle

Days ... Weeks

ManualQA Testing CycleWeeks ... Months

Manual/Semi-automated

Security Scan3..12 Months

Custom Delivery3..12 Months

Cost of a bug

Delay in Finding

Cost of a defect increases significantly when found later:

• Context switch for developer and need to (re-) familiarize with code

• More people are involved

• Takes effort to produce reliable reproducer

• High communication overhead (documentation, tracking, etc.)





Days ... Weeks





Likelihood to find a bug decreases dramatically:

• Fewer path are executed by tests on larger modules

• Fewer corner cases understood on higher level

• Fewer corner cases reachable from higher levels

Stage in Process

Likelihood to find a bug




Days ... Weeks





Stage in Process

Cost of a bug

Impact of delayed testing: • Dramatically increased cost of finding and fixing bugs

• Extends time to market

• Reduces reliability and risk of product deliveries

• Increases risk of security defect reaching customers

• Decreases customer satisfaction

• Increases the cost of follow-on products



Software Test Markets and

Watch this Space

Enter Dynamic

Unique technology to test

only changed code

Dynamic

$1250M

Coverity Original

Breakthrough

find quality defects early

without running code

Quality

Static

$200M

Extend Technology

to Security

find security defects early

without running code

Security

$240M

$560M

Strategies

3 Enter Dynamic a) Disruptive new

Techniques

3 2 Grow in Security

a) Extend Brand

b) Add more Checkers

and more Languages

2

1 Core Market a) Leverage Synopsys

in Embedded

b) Build on Success in

New Markets

c) Extend Differentiation

1

Source : Synopsys CBD, IDC, VDC -2014


Coverity® Development Testing Platform Analyze | Remediate | Govern

Security

Advisor

Test

Advisor

Analysis Packs

Coverity SAVE™ Static Analysis Verification Engine

SDLC

Integrations Policy Manager

Quality

Advisor

Architecture Analysis

Dynamic Analysis

FindBugs™ Analysis

Analysis Integration

Toolkit

Coverity Connect

Test Execution

Third Party Metrics

Build/ Continuous Integration

HP ALM

IDE

Code Coverage

Defect Tracking

SCM

Proprietary Code | Open Source Code

1 2 3


North America International

Embedded/

Electronics

Banks,

ISVs

Energy,

Gaming,

Etc.

Sales/Customer Engagement Benefit

We are Trusted Partners to

Leading Companies

We know how to sell

Software W

e a

re L

oca

l Eve

ryw

he

re

Resources

and Trust to

Collaborate

with Leaders


Complete

Solution

Front End

Platform

Point Tool

Logic Synthesis

Market Segment

Leader

'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97' '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14e

Reven

ue

Synopsys’ Next Platform Business

1990 2000 2010

Analog

Platform

Digital

Platform

Point Tool

DesignWare®

Market Segment

Leader

Test

Platform

Point Tool

Quality Advisor

EDA

Intellectual Property


Summary – Large Market Opportunity with

Current Logos + Brand New Customer Base

• Naturally adjacent

– Innovative algorithm-

based verification

technology

– Customer-obsessed DNA

• New industries SNPS

doesn’t touch today

Manufacturing

System Design

Verification Implementation IP

Different Users, Different Budgets

Current Semis/Systems Customers New Verticals, Customers

Banking, Financial Services, Energy,

Aerospace/Defense, Software, Internet,

Industrial, etc.


Thank You

lisa ewbank vice president, investor relations accelerated initiative ip prototyping customized kits...

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