Corporate Overview for Investors December 2015 May 2015
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 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 fourth quarter and fiscal year 2015 earnings release and financial supplement, dated December 2, 2015, and available on Synopsys' website at www.synopsys.com/company/investorrelations/pages/financialnews.aspx. 2015 Synopsys, Inc. 2
Synopsys Introduction Global leader in Electronic Design Automation (EDA), the tools and technologies used to design chips Leading provider of semiconductor Intellectual Property (IP), the reusable building blocks that are used for chip designs The market & technology leader: Virtually all leading-edge semiconductor designs in the world use Synopsys technology 2015 Synopsys, Inc. 3
Strategic Priorities Next Several Years Maintain our clear technical, business and support leadership in core EDA Drive continued growth in IP and Systems Expand our presence in the software quality and security space 2015 Synopsys, Inc. 4
Synopsys: The Market & Technology Leader FY15 FY16 (Target*) Revenue: $2.242B $2.350 $2.390B (5-7%) NG EPS: $2.77 $2.93 $3.00 (6-8%) Business Model: Revenue Sources: ~90% time-based ~½ International Employees: ~10,280 Market Cap: ~$7.8B Founded: 1986 Patents Granted: 2,535 * These targets were provided by Synopsys as of December 2, 2015, and are not being updated at this time 2015 Synopsys, Inc. 5
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth Dynamic markets Clear technology leadership Financial strength and growth 2015 Synopsys, Inc. 6
Global Value Chain EDA & IP At the Heart of Accelerating Electronics Innovation EDA & IP* $9.3B Embedded Software* $4.3B Foundry $42.1B Semiconductors $362B Electronic Systems $1,531B *Estimates are provided for EDA/IP/Embedded Software. **2014 value. Source: IC Insights, VDC Research, Synopsys Estimates 2015 Synopsys, Inc. 7
Helping Design the Chips Inside Impacting Everyone, Everything, Everywhere, Every Day Mobile Medical Automotive Cloud Infrastructure Computing & Peripherals Data Center & Networking Internet of Things Military / Aerospace Digital Home Industrial 2015 Synopsys, Inc. 8
Data, Data, Data Cloud Infrastructure Smartphone PC Data Access Tablet Smart TV By 2017, the annual global IP traffic will surpass the zettabyte threshold (1.4 zettabytes). Source: Cisco Systems, VNI Global Mobile Data Traffic Forecast Update 2013 2015 Synopsys, Inc. 9
Example Internet of Things Power Buildings Cars Toasters Lamps? Smart Software Sensors Microprocessors Lines of Code SW & E/E % Vehicle Cost 1970 100K <9% Storage 1990 1M 33% Communication 2010 100M >40% 2015 Synopsys, Inc. 10
Sensors Are Everywhere Significant Growth in Sensors Sensor Units to Grow to 30 Billion Units in 2017 30000 25000 20000 Consumer Automotive Computing Smartphones Feature Phones Industrial Other Communications 30B Units 15000 10000 10B Units 5000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Semico Research, 2013 2015 Synopsys, Inc. 11
Semiconductor Design Complexity An advanced design today will take 18-24 months to complete, and can cost up to $200M Complexity of designs has increased exponentially, requiring more, and more advanced, EDA tools As IC design complexity grows, there is the need to embed an increasing amount of IP The adoption of FinFET technologies drives further design challenges Exploding amounts of complex software creates significant hardware/software challenges 2015 Synopsys, Inc. 12
Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Leading the Way in FinFET 300 250 200 FinFET 22 16 14 10 150 100 50 0 ~260 FinFET designs and tapeouts worldwide Active designs Taped-out designs Synopsys is reliedon for 95% of them Source: Synopsys Global Technical Service 2015 Synopsys, Inc. 13
Comprehensive FinFET Solution Synopsys FinFET Leadership Have invested in the fastgrowing FinFET segment for almost a decade Comprehensive solution, ranging from TCAD to design tools, to IP, to sophisticated support Collaboration with key foundries Believe we have a sustainable advantage over our competitors Clearly, from a technical point of view, Moore s Law is alive and well, and Synopsys is central in driving it forward, Aart de Geus, Synopsys Chairman and Co-CEO 2015 Synopsys, Inc. 14
Cost ($M) Designs Are Becoming More Costly Primary Designs $600 $500 $400 Note: Primary Designs are new and more-complex design(s), typically shipping in high-volumes, are developed on the next process node, require qualification on a whole new range of IP, and typically contain extensive software content. Software Prototype $300 $200 Validation Physical Verification $100 Architecture $0 65nm 45/40nm 28nm 20nm 16/14nm IP qualification Source: IBS, July 2014 Feature Dimension 2015 Synopsys, Inc. 15
Blue Chip Customer Base Customer base consists of virtually all semiconductor companies in the world, including all of the top 20, with a large base of systems companies One >10% customer (Q415 & FY15) For many years we have collaborated closely with market leaders, including top foundries, IDMs and fabless customers 2015 Synopsys, Inc. 16
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth Dynamic markets Clear technology leadership Financial strength and growth 2015 Synopsys, Inc. 17
Broadest Portfolio of Best-in-Class Technology 2015 Synopsys, Inc. 18
#1 in Core EDA System Design Verification IP Implementation Manufacturing 61% of current revenue; 7.4% trailing twelvemonth revenue growth* 95% of FinFET designs have relied on Synopsys and 42 of the 43 leading-edge designs at 10nm are using our design tools Long-time technology leader in digital implementation Technology leader in both functional verification and circuit simulation Key Technologies Synthesis Place & Route Signoff Physical Verification Custom Design Digital & AMS verification Emulation FPGA Design 2015 Synopsys, Inc. 19 * As of December 2015
Synopsys IC Compiler II: Game-Changer in Digital Design V 10X 2015 Synopsys, Inc. 20
Productivity Synopsys IC Compiler II: Staying Ahead ICC II 10X Throughput Competitor Industry-leading performance ICC I Competitor Earlier-to-market Before 14 14 15 Time 2015 Synopsys, Inc. 21
Fastest Product Ramp-up in Our History 4 designs > 100 designs! 135 Production Designs 34 Completed Tapeouts 16/14nm 10nm 51 Active Customers 19 Process Nodes SNUG 2014 40nm 28nm Oct. 2015 Early in Multi-year Upgrade Cycle 2015 Synopsys, Inc. 22
Virtual Prototype Static & Formal Industry s #1 Planning & Coverage Debug #1 #1 #1 #1 Simulation #1 VIP, Models & Databases Emulation Industry s Fastest FPGA Prototype Verification Continuum Game-changing new platform launched in 2014 Seamless integration Built around best-inclass engines; adding unified debug, compile Goal: speed software bring-up by ~6 months Atrenta acquisition brings leading static & formal analysis solution Key technology advancements in emulation and next generation prototyping 2015 Synopsys, Inc. 23
2014: Verification Compiler Integration of Software Elements of Verification Continuum; Comprehensive, Best-in-Class Verification in One Product 2015 Synopsys, Inc. 24
ZeBu Server-3 Industry s Fastest Emulation System Performance Speeds HW/SW bring-up and SoC verification up to 4X for faster time-to-market Hybrid Emulation Links to virtual prototype for architecture optimization and early SW development \ ZeBu Server-3: 300M gates in a 20 cube < 2.5 kw, <155 pounds Debug Comprehensive debug with full signal visibility and Verdi 3 integration Architecture Advanced architecture for lower total cost of ownership Capacity Industry s highest capacity scalable to three billion gates 2015 Synopsys, Inc. 25
#1 in Manufacturing System Design Verification IP Implementation Manufacturing 8% of current revenue; 4.8% trailing twelvemonth revenue growth* Mask data prep tools used by 8 of the top 10 semiconductor manufacturers TCAD tools used by 9 of the top 10 semiconductor manufacturers Yield management solution reducing time to production yield Key Technologies Mask Synthesis Mask Data Prep Yield Management TCAD 2015 Synopsys, Inc. 26 * As of December 2015
Growth in Core EDA + Manufacturing Estimated Long-Term Organic Growth Rate Generally in the low-to-mid single digit range* Growth drivers: Segment growth + market share gains Segment Growth Drivers Semi R&D growth Demand for new designs, new devices Increasing complexity requiring new, advanced solutions Share Growth Drivers Leading expertise and experience in advanced processes and key IP Most powerful tools and most complete flows providing better results, lower total cost New products/technologies * This multi-year estimate is provided as of December 2, 2015 and is not being updated at this time 2015 Synopsys, Inc. 27
Growth in IP/Systems/Software Integrity System Design Verification IP Implementation Manufacturing 27% of current revenue; 13% trailing twelvemonth revenue growth* Estimated long-term organic revenue growth: generally in the low double-digits** Top-20 semiconductor vendors continue to outsource more IP to Synopsys System Design outsourcing driven by need for earlier, more efficient software development, and hardware/software verification 2015 Synopsys, Inc. 28 Key Technologies Interface IP Analog IP System-Level Design Embedded Memories IP Subsystems Virtual and FPGA-based prototyping Software Integrity includes our quality and security solutions * As of December 2015 ** This multi-year estimate is provided as of December 2, 2015 and is not being updated at this time
#2 IP Vendor Leader in Interface, Analog & Memory IP Leadership Enables Investment in Quality, Support, Features and Processes Design IP Revenue, Worldwide (in Millions)* Design IP Revenue, Wired Interface Design IP Revenue, Wired Interface 2014 2013 Rank Rank Company Company 20142013 Share Share 1 1 Synopsys Synopsys 217.8193.3 45.7% 43.5% 2 2 Silicon Im age Silicon Im age 59.9 49.1 12.6% 11.0% 3 Design 3 Cadence IP Revenue, Des Cadence ign Memory Sys tem scells/blocks 45.6 44.8 9.6% 10.1% 4 4 Ram bus Ram bus 35.7 34.3 7.5% 7.7% 2014 5 ARM 24.2 5.1% Rank 5 Company ARM Holdings 20.2 2014 Share 4.5% 6 Arasan Chip Systems 9.2 1.9% 6 L&T Infotech 11.9 2.7% 7 1 Faraday Technology Synopsys 8.4 76.11.8% 30.3% 7 Arasan Chip Systems 9.7 2.2% 8 2 PLDA ARM 5.9 73.81.2% 29.4% 8 Faraday 8.3 1.9% 9 3 IPGoal Microelectronics 5.2 1.1% 9 Design emem PLDA IP ory Revenue, Technology General Purpose Analog 7.9 33.5& Mixed 13.3% 1.8% Signal 10 4 Mobiveil 5.1 1.1% 10 Kilopas Mobiveil s Technology 5.5 24.7 1.2% 9.8% 2014 Others 60.0 12.6% 5 Rank Sidens Others e Company 59.79.3 13.4% 2014 3.7% Share Total 476.8 100.0% 6 1 Mentor Total Graphics Synopsys 444.68.4 100.0% 11.8 3.3% 18.2% 7 2 Dolphin Technology Cadence Des ign Sys tem s 5.5 6.5 2.2% 10.1% 8 3 esilicon Faraday Technology 5.5 5.4 2.2% 8.4% 9 4 MoSys Qualcore Logic 3.4 4.7 1.4% 7.3% 10 5 Flas ys True Circuits 2.1 4.7 0.8% 7.2% 6 Others Analog Bits 8.9 3.3 3.5% 5.1% 7 Total RF Engines 251.2 100.0% 3.1 4.8% 8 Kaben Wireles s Silicon 2.7 4.1% 9 Dolphin Technology 2.7 4.1% 10 S3 Group 2.2 3.4% Others 17.7 27.4% Total 64.7 100.0% Rank Company 2013 2013 Share 1 Synopsys 76.8 31.5% 2 ARM Holdings 66.3 27.2% 3 emem ory Technology 27.4 11.2% 4 Kilopas s Technology 22.0 9.0% 5 Mentor Graphics 9.7 4.0% 6 Sidens e 9.2 3.8% 7 NSCore 6.8 2.8% 8 esilicon 5.9 2.4% 9 Dolphin Technology 4.6 1.9% 10 MoSys 4.4 1.8% Others 11.0 4.5% Total 244.0 100.0% Rank Company 2013 2013 Share 1 Synopsys 12.0 17.7% 2 Cadence 6.8 10.0% 3 QualCore Logic 5.5 8.1% 4 Faraday 5.4 8.0% 5 True Circuits 4.5 6.6% 6 Analog Bits 3.2 4.7% 7 Kaben Wireles s Silicon 3.0 4.4% 8 RFEL 2.9 4.3% 9 Dolphin Technology 2.7 4.0% 10 Silicon Creations 2.1 3.1% Others 19.7 29.1% Total 67.8 100.0% 2015 Synopsys, Inc. 29 * Gartner, March 2015
Basic Peripherals (UARTs/Timers) Specialty I/O Third-Party IP Synopsys Differentiator Application CPU Application CPU RAM RAM ROM Graphic Core(s) LVDS, Etc Established Provider RAM RAM RAM RAM Flash Interface Flash Storage 15+ years of investment and execution On-Chip Bus DDR Interface DDR memory Resource Commitment RAM RAM RAM RAM ~2,550 IP Engineers Worldwide Interface Data Converters Analog Audio / Video I/F Headset Jack Microphone Audio Codecs Video Codecs Trusted IP Supplier Broad portfolio of high-quality, production-proven IP USB PCIe SATA HDMI MIPI * Small boxes are standard cell library elements 2015 Synopsys, Inc. 30
3 rd Party IP Usage Will Continue to Double Through 2018 Wireless communication 2018 2013 Escalating Design Costs Increasing Design Complexity Consume Data processing Shorter Time Window for New Product Launch Automotive Wired communication Industrial Overall 3rd party design IP use in 2013 Overall 3rd party design IP use in 2018 0% 15% 30% 45% 60% 75% 90% Source: Gartner, July 2014 Strong Growth in 3 rd Party IP Usage Percentage of 3 rd party IP blocks used in SoC design 2015 Synopsys, Inc. 31
Revenue Growth IP Market Growing to $4.3B by 2018 $5,000 25.0% $4,500 $4,000 $3,836 $4,315 20.0% $3,500 $3,000 $2,500 $2,000 $1,500 $1,343 $1,624 $1,913 $2,203 $2,457 $2,683 $3,119 $3,441 15.0% 10.0% 5.0% 0.0% $1,000 $500-5.0% $- 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E IP Revenue ($M) IP Growth (%) Source: Gartner, March 2015, June 2014-10.0% 2015 Synopsys, Inc. 32
IP Business Models Single Use Multi-Use Agreement Engineering Service Customer buys IP for a specific project Revenue recognized up front Customer buys a pool of IP that can be used over a multi-year period until the pool is exhausted or the contract expires Revenue recognized over time Customer pays for porting IP to specific semiconductor process or customization work Revenue recognized primarily on % of completion basis 2015 Synopsys, Inc. 33
Acquisitions Expand IP Portfolio Acquired Elliptic Technologies (June 29) o Complements DesignWare IP portfolio with Security IP Acquired Bluetooth Smart IP from Silicon Vision (July 16) o Expands leading DesignWare IP portfolio with Wireless IP for IoT 2015 Synopsys, Inc. 34
Optimized IP Solutions for IoT IoT Devices Interface & Analog IP IoT Platform Processors Security IP Broadest IP portfolio Recent acquisitions add critical IP Sensor Subsystem Memories & Libraries Bluetooth Pre-validated IoT platform through TSMC collaboration 2015 Synopsys, Inc. 35
#1 in Prototyping Solutions #1 provider of virtual prototyping solutions (Virtualizer) Synopsys #1 provider of FPGA-based prototyping solutions (HAPS) Prototyping solutions used for: o o o Early SW development HW/SW integration System validation 2015 Synopsys, Inc. 36
Software Megatrends Quality & Security Tools Market (~$B) 0.4 1.2 0.6 1.3 0.7 1.4 0.9 1.5 1.2 1.6 Size of applications continues to grow Number of developers increases steadily Total market $2.4B and growing ~20%; Security growing ~30% 2012 2013 2014 2015 2016 Security Quality Source: VDC, Gartner, SNPS research 2015 Synopsys, Inc. 37
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 2015 Synopsys, Inc. 38
Growing the Business: Field Execution Trusted Relationship with Existing Customers Dedicated Enterprise Sales Team Leveraging core Synopsys sales team to sell to embedded SW customers Focused on enterprise customers in key verticals Culture of Close Customer Collaboration Strong International Presence 2015 Synopsys, Inc. 39
Mobile / Consumer Devices Enterprise Networking / ISV High Reliability Devices Financial Services 2015 Synopsys, Inc. 40
Growing the Business: Industry Recognition Synopsys Positioned as Visionary in 2015 Magic Quadrant for Application Security Testing Ability to Execute Challengers Leaders 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. 2015 Synopsys, Inc. 41 Niche Players Completeness of Vision Visionaries As of August 2015
Acquisitions Expand Security Offering Acquired Codenomicon (June 29) independent discoverer of Heartbleed bug; security testing for embedded SW Acquired assets of Quotium (July 20) interactive application security testing (IAST), a well-known method of testing applications during the software development lifecycle Acquired Protecode (Nov. 6) specializes in managing opensource and third-party source code 2015 Synopsys, Inc. 42
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth Dynamic markets Clear technology leadership Financial strength and growth 2015 Synopsys, Inc. 43
Growth and Predictability Revenue ($M) $2,500 $2,000 $1,500 $1,000 $1,756 $1,962 $2,057 $2,242 $2,370 Predictable, time-based revenue model $500 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $0 $2.10 2015 Synopsys, Inc. 44 FY12 FY13 FY14 FY15 FY16 Guide-Mid* NG EPS $2.44 $2.53 2.77 9% 5-yr CAGR $2.97 FY12 FY13 FY14 FY15 FY16 Guide-Mid * Entered FY16 with ~80% of revenue in hand; enter each quarter with ~90% in hand Non-cancellable backlog: $3.6B 3-yr backlog end of FY15 9% non-gaap EPS 5-year CAGR* * These targets were provided by Synopsys as of December 2, 2015, and are not being updated at this time
Predictable Time-Based Revenue $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 9% $3.1B 11% 3-Year Backlog $3.5B $3.6B FY13 FY14 FY15 80% FY15 Time-Based License Revenue Upfront License Revenue Services Revenue Significant Non-cancellable 3-year Backlog $3.6B at end of FY15 More backlog than next 2 largest EDA players combined Predictable, time-based revenue model Time-based revenue (time-based license, maintenance and services) generally represents ~90% of total revenue Revenue recognized over the life of the contract Expecting weighted average contract duration of ~2.7 years in FY16* (vs. ~2.7 years in FY15) * These targets were provided by Synopsys as of December 2, 2015, and are not being updated at this time 2015 Synopsys, Inc. 45
$ Millions Strong Operating Cash Flow $600 $500 $400 $300 $200 Annual Operating Cash Flow $497 $551 $495 At least $500 Roughly tracks EBITDA less cash taxes over time OCF is lumpy Difficult to forecast period to period Timing of large contracts Disbursements (affected by M&A) $100 $0 FY13 FY14 FY15 FY16 Guidance* 2015 OCF affected by 1-time VRP payouts, outflows related to acquisitions * These targets were provided by Synopsys as of December 2, 2015, and are not being updated at this time 2015 Synopsys, Inc. 46
Efficient Resource Management 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20% 23% 7% 6% 27% 20% 29% 33% 17% 18% FY07 FY15 COGS R&D S&M G&A NG Operating Margin Most profitable ($) in EDA Have reduced G&A and S&M spending (as % of revenue) Expect to maintain NG R&D spend at ~30% of revenue Goal is to focus on global operational efficiency to deliver solid NG operating margin in the mid-20s range 2015 Synopsys, Inc. 47
$ Millions $ Millions Technologically & Geographically Diversified 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3% 3% 3% 9% 9% 8% 25% 26% 27% 63% 62% 61% FY13 FY14 FY15 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 23% 25% 25% 14% 12% 10% 14% 13% 13% 50% 51% 52% FY13 FY14 FY15 Core EDA IP/Systems/SW Integrity North America Europe Japan Asia Pacific Manufacturing Services & Other Product Groups (TTM Revenue Growth*) Core EDA: 7.4% IP/Systems/Software Integrity: 13% Manufacturing: 4.8% Geographies (TTM Revenue Growth*) North America: 12.2% Europe: 10.1% Japan: -8.3% Asia Pacific: 9.9% * As of December 2015 2015 Synopsys, Inc. 48
Capital Allocation Strategy Disciplined resource management and allocation Actively explore TAM-expanding R&D and M&A opportunities to maximize long-term shareholder value Optimize the use of our strong cash flow and utilize our balance sheet effectively, through a balance of M&A, stock buybacks and debt reduction 2015 Synopsys, Inc. 49
$ Millions Solid Balance Sheet $1,000 $800 $600 $400 $200 $0 US Non US $1,022 $1,004 $986 $965 $700 FY11 FY12 FY13 FY14 FY15 $760M net cash at end of Q415 Split of U.S. vs. non-u.s. cash can influence investment decisions Buybacks and debt repayments funded entirely with U.S. cash Typically like to hold a minimum of ~$100M in U.S. cash on the balance sheet 2015 Synopsys, Inc. 50
$ Millions Returning Cash to Shareholders $500 $400 $300 Annual Share Buybacks $435 $280 Since 2010, spent $1.2B on buybacks Plan to accelerate buybacks in FY16 to slightly reduce share count* $200 $100 $0 $185 $145 $120 $40 FY10 FY11 FY12 FY13 FY14 FY15 $500M remaining on our current share repurchase authorization* Goal is to optimize the use of our strong cash flow, through a balance of M&A, debt reduction and stock buybacks * As of December 2015 2015 Synopsys, Inc. 51
Long-term Operating Model* Primary long-term objective is to drive high-singledigit EPS growth through a mix of the following elements: Organically grow traditional EDA revenue generally in the low-to-mid single digit range Organically grow IP/Systems/SW Integrity revenue generally in the low double-digits Actively explore TAM-expanding R&D and M&A opportunities Focus on global operational efficiency to deliver solid non-gaap operating margin in the mid-20s range Optimize the use of our strong cash flow, through a balance of M&A, debt reduction and stock buybacks Note: While the combination of elements may vary, based on business cycles and inperiod priorities, our long-term driving principles remain consistent. * This multi-year objective is provided as of December 2, 2015 and is not being updated at this time 2015 Synopsys, Inc. 52
Summary Dynamic markets World s leading EDA supplier and #2 IP vendor Clear technology leadership Broadest portfolio of best-in-class technology with multi-year upgrade cycle Financial strength and growth Excellent financial position and execution 2015 Synopsys, Inc. 53
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