#1Synopsys Silicon to Software™ Corporate Overview for Investors May 2023 SYNOPSYS#2Forward-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, technology and services; business and market outlook, opportunities and strategies; the expected impact of U.S. and foreign government actions and regulatory changes, including export control restrictions, on our financial results; the potential impact of the macroeconomic environment on our financial results; customer demand and market expansion; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and stock repurchases; our expected tax rate; and the impact and result of pending legal, administrative and tax proceedings. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 and in our latest Quarterly Report on Form 10-Q. The financial information contained in this presentation should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys' financial results for its second quarter of fiscal year 2023 are not necessarily indicative of Synopsys' operating results for any future periods. The information provided herein is as of May 17, 2023. Synopsys undertakes no duty to, and does not intend to, update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law. synopsys® Regulation G In addition to financial results prepared in accordance with Generally Accepted Accounting Principles, or GAAP, this presentation also contains certain non- GAAP financial measures. When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Reconciliations of certain of the non-GAAP financial measures (either contained in this presentation or given verbally) to their most comparable GAAP measures are included in the table at the end of this presentation, along with the second quarter of fiscal year 2023 earnings release and financial supplement, dated May 17, 2023, and available on Synopsys' website at https://investor.synopsys.com/news/default.aspx. Synopsys is unable to provide a reconciliation of certain non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis because doing so would not be possible without unreasonable effort due to, among other things, the potential variability and limited visibility of the excluded items. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. © 2023 Synopsys, Inc. 2#3Synopsys: The Market & Technology Leader Broad Product Portfolio Electronic Design Automation (EDA) Semiconductor Intellectual Property (IP) Software Security and Quality Revenue: FY22 $5.08B 20.9% FY23 Targets(1)(2) $5.79B $5.83B - 14% - 15% ~34.5%* *Midpoint of range Growth Rate: Non-GAAP 33.0% Operating Margin: Non-GAAP $8.90 $10.77 $10.84 - Diluted EPS: Growth Rate: 30.1% 21% -22% Operating Cash Flow: $1.74B ~$1.65B Business Model: Time-based, recurring revenue model; Non-cancellable backlog synopsys® (1) These targets are being provided by Synopsys as of May 17, 2023. (2) Assumes no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. © 2023 Synopsys, Inc. 3#4Synopsys: The Market & Technology Leader 1011 0100 Design Automation ~35 years of investment and execution ~65% of revenue Design IP ~25 years ~25% of revenue Software Integrity -9 years ~10% of revenue synopsys® Market Leader #2 IP Vendor, Broadest Portfolio Industry Leader, Broadest Portfolio 2023 Synopsys, Inc. 4#5Long-term Financial Objectives1 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 Annual double-digit growth ● Design Automation: double-digits Design IP: mid-teens • Software Integrity: 15-20% Margin Annual non-GAAP operating margin expansion of more than 100 bps Earnings Annual non-GAAP EPS growth in the mid-teens range Utilize our strong cash flow for organic investments, M&A and share buybacks 1. These multi-year objectives are provided as of May 17, 2023. 2. Period to period fluctuations are a normal element of our business, driven particularly by timing of hardware and IP deliveries. Variability, which increased as a result of Accounting Standards Code (ASC) 606 adoption, should be expected. synopsys® 2023 Synopsys, Inc. 5#6Synopsys: The Market and Technology Leader Uniquely Positioned for Growth and Stability ► Robust End Markets ⚫ Clear Technology Leadership ⚫ Financial Strength and Growth 100 401 00 01 0 10 00 0 0 01 © 2023 Synopsys, Inc. 6#7Global Value Chain - 2022 EDA & IP - At the Heart of Accelerating Electronics Innovation EDA & IP $16.6B synopsys® Embedded Software $15.0B Foundry $142B 201 10:15. Semiconductors $637B Electronic Systems $1.86T Sources: ESD Alliance, Ipnest, MarketsandMarkets, IC Insights 2023 Synopsys, Inc. 7#8Blue Chip, Diversified Customer Base Semiconductors Systems Software Developers D 10 10 1.10° 1 0 D 101. D D DB 1 OL • Semi R&D (including EDA) is a top investment priority for semi and system customers in all phases of the business cycle Consists of virtually all semiconductor companies in the world, including all of the top 20 One 10% customer in FY22 • • ~45% of our revenue comes from systems companies Systems companies develop chips as an input to an end product, rather than selling the chip itself Verification challenges are rapidly growing at the intersection of hardware and software • Key function across all industries: semis and systems, to enterprises in segments such as financial services, medical devices, automotive, and industrial Targeting software developers, DevOps groups, corporate security teams synopsys® © 2023 Synopsys, Inc. 8#9Dynamic Change in Many Markets HPC, Data Center (Al accelerators) Networking Mobile/5G Automotive Industrial Automation Enterprise Software Healthcare Memory Government & Aerospace Financial PC/Gaming AR/VR Services synopsys® Demand for Smart Everything seems limitless Innovation is fueled by semiconductor and software advances Driven by fusion of Al and machine learning 2023 Synopsys, Inc. 6#10Synopsys: The Market and Technology Leader Uniquely Positioned for Growth and Stability Robust End Markets • Clear Technology . Leadership ⚫ Financial Strength and Growth 100 401 00 01 0 10 00 0 0 01 © 2023 Synopsys, Inc. 10#11Synopsys Enables System Innovation, Silicon to Software Comprehensive World-Class Technology Software: Application security testing & quality Leader in Gartner's Magic Quadrant Systems: Leader in HW/SW verification, virtual prototyping, VIP and models Design: Digital & custom AMS solutions Best QoR, highest productivity PROCESS FUNDAMENTALS synopsys® Software Systems IP IP: Broadest portfolio, silicon-proven #1 interface, analog, memories, physical Silicon: Reference tools for process optimization, CAD, lithography & yield optimization Solutions: Design Silicon Automotive, low power, 3DIC, DTCO, memory, silicon lifecycle management Broadest System Design Coverage P DEPLOYED SYSTEM © 2023 Synopsys, Inc. 11#12Synopsys • • LEADER IN EDA Market and technology leader in design automation, the tools and technologies used to design semiconductor chips and systems ~$9.9 billion market*; generally tracks semiconductor R&D spend over time Growth drivers: all aspects of chip & system complexity All leading semiconductor companies in the world use Synopsys technology State-of-the-art design and verification solutions with unmatched global support * 2022; Source: ESD Alliance, Internal estimates © 2023 Synopsys, Inc. 12#13EDA Data Analytics Synopsys.ai - Industry's First Al-driven Full EDA Suite Delivers unmatched productivity & QoR boost Synopsys.a Al Driven EDA Stack System Architecture Design Capture Verification Implementation Signoff Test & SLM Silicon Manufacturing Hyperconvergence 2 Verification Space Optimization (VSO.ai) - Al inferred faster & better coverage Next-Gen Design Space - 1 Optimization (DSO.ai) – 2X faster TAT & 20% better QOR 3 Test Space Optimization (TSO.ai) - Al Optimized ATPG QOR for fewer patterns synopsys® © 2023 Synopsys, Inc. 13#14DSO.ai Success & Momentum Al driven EDA Innovation •Industry first Al App for Implementation • Deployed in 9 out of top 10 semi logos • 200+ production tape-outs & counting synopsys® WIRED Samsung Has Its Own Al-Designed Chip. Soon, Others Will Too Synopsys, which sells software for designing semiconductors to dozens of companies, is adding artificial intelligence to its arsenal. +digitaltrends Aug 23 3021, 03:30pm EDT 8 views Forbes COMPUTING A.I. is leading a chip design revolution, and it's only just getting started By Jacob Roach August 23,2021 G Synopsys Laps Competition With Second Generation AI Karl Freund Contributor Enterprise Tech Founder and Principal Analyst, Cambrian Al R Listen to this article now Pwed by Tisay Audio Follow 04:40 f EDA Leader Synopsys paints path to Software-Designed Si 4 Last year, EDA leader Synopsys announced it had developed an AI chip design instrument called DSO.ai that could produce faster, lower cost, and 020 in more power-efficient chips by using an AI to figure out how to best place the transistors on a piece of silicon. Now, 16 months later, Samsung has World Electronics Achiehe Machine VB The Machine Making sense of A For decades, constant innovation in the world of semiconductor chip design has made processors faster, more efficient, and easier to produce. Artificial inte (A..) is leading the next wave of innovation, trimming the chip design proce Disrupted years to months by making it fully autonomous. Synopsys design REUTERS software uses Al to make chips more power efficient By Stephen Nellis y Synopsys CEO: Al-designed chips will ge Aug 23 (Reuters) - Synopsys Inc (SNPS.Q) said on Monday Synopsys D1,000X performance in 10 years Innovative Product of Software is Eating the World! And Al is Eating Software.. one of its customers used artificial intelligence software to get a 26% gain in the power efficiency of a computer chip, a leap that usually has to wait for a new generation of chip. manufacturing technology. ZDNet a SYNOPSYS Solutions Products Support Company Al will help design chips in ways humans wouldn't dare, says Synopsys CEO de Geus A machine will take risks on the margin where it can calculate the odds better than a person can. in af va By Teman Ray Apr 23, 20121-1034 GMT 0934 PUT T Artical c Al-designed Chips Reach Scale with First 100 Commercial Tape-outs Using Synopsy Technology Share fy in E Award-winning Synopsys DSO Solution Transforms Customer Capability with Significant Productivity and Performance Gains and Cloud Scalability Margin is essently a risk calculation, and that is a sheer impossible thing to do for a huna exples Aat de Geus chief cative of co-design maker Synopsys machine phne everything anything Artificial intelligence is increasingly being utilized in the design of semiconductors, and one of its Key Highlights: AI Chip design ecosystem working with Synopsys achieves first 100 commercial tape-outs across a range of applications and advanced nodes ⚫STMicroelectronics achieves the first-ever commercial design tape-out using At on the cloud, realizing a 3x productivity uplift for power performance and area (PPA) using Synopsys DSO al on Microsoft Azure © 2023 Synopsys, Inc. 14#15#1 in Digital Design: Synopsys Digital Design Family SYNOPSYS DIGITAL DESIGN FAMILY SYSTEM DESIGN 3DIC Compiler DIGITAL DESIGN RTL Architect Test Fusion Design Compiler NXT synopsys® IC Compiler II TestMAX CLOUD BIG DATA Fusion Architecture #1 Anchors: Synthesis, P&R, Signoff Fusion of algorithms, engines, data model Fusion Compiler Innovative Products Industry Unique Fusion Compiler DC NXT, Synopsys TestMAX, IC Validator NXT Signoff Fusion Market ML-enhanced tools, Al-driven apps PrimeTime, PrimeShield StarRC PrimePower PrimeLib Tweaker ECO IC Validator NXT Formality / Formality ECO RedHawk Analysis Fusion Leadership Cloud-ready POST SILICON Monitor IP SiliconDash Yield Explorer 2023 Synopsys, Inc. 15#16Verification Hardware: ZeBu® Server 5 Highest performance for large workloads. Performance and throughput 2X higher than prior generation synopsys Ready for largest, multi-die designs Unmatched reliability 99.9+% projected uptime Best datacenter scalability through power and footprint ZeBu Server ZeBu Server 5 synopsys® © 2023 Synopsys, Inc. 16#17Efficient Design Implementation for Multi-Die Systems UNIFIED EXPLORATION-TO-SIGNOFF 3DIC COMPILER Exploration & Creation Implementation System Signoff Common Fusion Data-model Complete architecture- to-signoff solution in a consolidated user environment End-to-end solution for efficient, 2.5D, and 3D multi- die system integration DIE-TO-DIE IP UCle Die-to-Die IP PHY Controller Delivers up to 4Tbps bandwidth in a multi- module configuration Security Verification IP Enables ultra-low latency link between two dies Scalable 100s of billions of transistors Productive Fast exploration & design Golden Signoff Convergence to optimal PPA/mm³ Complete PHY, Controller, VIP Secure Opt. Authentication Engine synopsys® Robust Based on Proven IP 2023 Synopsys, Inc. 17#18Synopsys® 96 Leader in Design 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 ~$6.7 billion market*, benefitting from our customers' move to outsourcing more and more complex IP IP reuse reduces our customers' chip design costs, lowers risk and speeds time-to-market Serving high-impact, growing markets (IoT, Automotive, Security, Cloud Computing), advanced processes & protocols ~25 years of investment and commitment resulting in unmatched portfolio breadth, quality and reliability *2022; Source: IPnest, Internal estimates © 2023 Synopsys, Inc. 18#19Broadest and Most Comprehensive IP Platform SYNOPSYS IP PORTFOLIO Design Solutions DDR/HBM PCle PHY PHY HDMI/DP PHY USB PHY 10/56/112G XSR/UCle PHY PHY C/D-PHY M-PHY CPUs MPUS Security DDR/HBM PCle HDMI/DP USB controller controller controller controller Ethernet Die-to-Die controller controller CSI DSI UFS UniPro Growing IP Demand >20% growth in FY22 AMBA 4 AXI, AMBA 3 AXI & AMBA 2.0 AHB Interfaces, Analog, Broadest Foundation IP, DSPs Embedded SD/eMMC controller Memories Al & Vision Processors IP Subystems (TCAM, GPIO, LVDS PVT Sensors BLE 5 Link Layer Portfolio Memories, Security, Processors SRAM, ROM, ADCs DACs NVM) eMMC PHY BLE Radio ARC Processor IP synopsys® Datapath, incl. Floating Point Elements Logic Libraries Digital IP Physical IP Competitive Unmatched global engineering team Differentiation Dedicated to quality © 2023 Synopsys, Inc. 19#20High-Impact Markets: Increasing Technology Complexity Driving Growth in Third-Party IP Demand ΑΙ Machine Learning, Deep Neural Networks AUTOMOTIVE CLOUD ADAS, Infotainment, Connected Vehicle Networking, Servers Al Accelerators IoT Smart Home, Industrial, Wearables synopsys® © 2023 Synopsys, Inc. 20 20#21Synopsys® 0 10 10 10 10 0 10 10 0 100 10 0 10 10 10 O 10 Mar O 000 Leader in Software Integrity Assembled and developed the broadest portfolio of solutions on the market; >$500 million TTM revenue Solutions that enable organizations to manage application security, quality and compliance risks at the speed their business demands Approximately $2.5-3.0 billion served market: fragmented, with numerous point solutions; recognition of cost of software failure has increased dramatically Serving organizations in sectors ranging from embedded (including semis, systems) to enterprise (incl financial services, medical, industrial, automotive) 2023 Synopsys, Inc. 21#22Software Security & Quality Market TAM: ~$4.5-6.5B SAM: ~$2.5-3.0B Evolving market, ~15% growth Growth drivers: - Ubiquity and growth of software Cloud transformation Significant business risk from breaches. Rise of open source Sources: Gartner, Forrester, IDC, other external and internal analyses synopsys® - Software supply chain complexities Synopsys long-term multi-year growth objective: ~15-20% range* *This multi-year objective was provided as of May 17, 2023 22 22 2023 Synopsys, Inc.#23Software Integrity Portfolio Synopsys Code Sight TM CoverityⓇ Black Duck® SeekerⓇ Defensics® Intelligent Orchestration Code DxⓇ Insight - Risk Management and Software Supply Chain fAST Static fAST SCA WhiteHatⓇ fAST Dynamic Future services Polaris Software Integrity PlatformⓇ Security Testing Services AppSec Programs, Strategy and Implementation Services SaaS Software 2023 Synopsys, Inc. 23#24Market Leadership Magic Quadrant for Application Security Testing ABILITY TO EXECUTE CHALLENGERS Invicti Synopsys® GitHub LEADERS Synopsys Gartner Top ranking in all five Critical Capabilities for Application Security Testing Product or Service Scores for Enterprise Synopsys Veracode HCL Software Product or Service Scores for Continuous Testing 3.9 3.60 Synopsys Checkmarx Checkmarx Snyk Veracode Micro Focus Micro Focus Snyk HCL Software GitLab Rapid7 NTT Application Security Contrast Onapsis Security NICHE PLAYERS COMPLETENESS OF VISION 3.90 3.53 Data Theorem 3.55 3.52 HCL Software 3.44 3.52 Micro Focus 3.38 3.50 Checkmarx 3.23 Data Theorem 3.48 Veracode 3.19 Product or Service Scores for Mobile and Client GitLab Product or Service Scores for DevSecOps NTT SYNOPSYS® Contra Data Theorem Rapid Veracode Data Theorem Invicti Micro Focus GitHul HCL Software Onaps Checkmarx VISIONARIES As of April 2022 Ⓒ Gartner, Inc Synopsys Checkmarx Data Theorem Snyk HCL Software Micro Focus Snyk NTT Application Security Contrast Security Product or Servic Synopsys Veracode GitLab GitLab Rapid7 Inviati Checkmarx Data Theorem Snyk 3.91 3.58 3.53 3.36 3.35 3.33 3.10 3.04 3.90 3.57 3.55 3.35 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 here.. 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. Gartner, Inc. "Magic Quadrant for Application Security Testing" by Dale Gardner, Mark Horvath, and Dionisio Zumerle, April 18, 2022. © 2023 Synopsys, Inc. synopsys 24#25Synopsys: The Market and Technology Leader Uniquely Positioned for Growth and Stability Robust End Markets • Clear Technology Leadership ► Financial Strength and Growth 100 401 00 01 0 10 00 0 0 01 © 2023 Synopsys, Inc. 25 25#26Excellent Financial Execution Revenue (M) $5,790-$5,830 (14%-15% y/y) $5,082 $4,204 $3,685 $3,361 $3,121 FY18 FY19 FY20 FY21 FY22 Non-GAAP EPS* $10.77-$10.84 (21-22% y/y) $6.84 $5.55 $4.56 $3.91 $8.90 FY23E* FY18 FY19 FY20 FY21 FY22 FY23E* Recurring revenue model with $7.3B non-cancellable backlog provides stability throughout the business cycle * FY23E reflects guidance provided as of May 17, 2023 synopsys® Strong financial execution while investing for long-term growth 2023 Synopsys, Inc. 26#27Cash Flow & Capital Allocation Operating Cash Flow (M) Stock Repurchases (M) $1,100 $424 $991 $801 $1,493 $1,739 ~$1,650 $400 $329 $242 $788 $606 FY18* FY19 FY20 FY21 FY22 FY23E** FY18 FY19 FY20 FY21 FY22 FY23 YTD • • Roughly tracks EBITDA less cash taxes on multi-year basis It is important to consider multi-year averages, as operating cash flow is inherently lumpy * Includes approximately $230M in one-time payments ** FY23E reflects targets provided by Synopsys as of May 17, 2023. synopsys® • Repurchased ~$3.5B in stock since 2018 Capital allocation priorities: - - Internal investments Buybacks and acquisitions 2023 Synopsys, Inc. 27#28GAAP to Non-GAAP Reconciliation (1) Earnings Per Share - Full Fiscal Year 2023 Targets Range for Fiscal Year Ending October 31, 2023 Low High Target GAAP earnings per diluted share attributed to Synopsys $ 7.44 7.60 Restructuring charges Adjustments: Amortization of intangible assets Stock compensation Acquisition-related items Tax adjustments 0.67 0.64 3.77 3.71 0.03 0.03 0.29 0.29 (1.43) (1.43) Target non-GAAP earnings per diluted share attributed to Synopsys $ 10.77 $ 10.84 Shares used in non-GAAP calculation (midpoint of target range) 156,500 156,500 (1) Synopsys' fiscal year 2023 will end on October 28, 2023. For presentation purposes, we refer to the closest calendar month end. For additional information about the measures Synopsys uses to evaluate its core business operations, please review the earnings press release and Item 2.02 of the Current Report on Form 8-K filed on May 17, 2023. synopsys® © 2023 Synopsys, Inc. 28#29GAAP to Non-GAAP Reconciliation (1)(2) Operating Margin - Midpoint of Fiscal Year 2023 Targets At midpoint of revenue and expense guidance ranges GAAP operating margin Amortization of intangible assets Stock compensation Acquisition-related items Restructuring charges Target non-GAAP operating margin Twelve Months Ending October 31, 2023 21.7% 1.8% 10.1% 0.1% 0.8% 34.5% (1) Synopsys' fiscal year 2023 will end on October 28, 2023. For presentation purposes, we refer to the closest calendar month end. (2) These numbers represent the midpoint of targets in the prepared remarks provided on May 17, 2023, and do not represent official guidance for fiscal year 2023. For additional information about the measures Synopsys uses to evaluate its core business operations, please review the earnings press release and Item 2.02 of the Current Report on Form 8-K filed on May 17, 2023. synopsys® © 2023 Synopsys, Inc. 29#30synopsys® Environment, Social, Governance Highlights Building a Smart Future Together Synopsys' Smart Future ESG strategy provides a focus and structure for how we manage our own operational impact and influence others around us to create a better world. IMPACT ronment - - Optimizing our own operational footprint Our People Synopsys SMART FUTURE Sustainable | Just | Secure Cybersecu stainability Industry INFLUENCE - Social impact Supply -Influencing those we partner and work with © 2023 Synopsys, Inc. 30#31Synopsys 2022 ESG Progress Highlights. Environment Social • • Our low-power electronic design automation (EDA) solutions allow our customers to achieve an additional 25% power reduction for their systems-on-chip (SoCs) Developed new Greenhouse Gas (GHG) emissions reduction targets for review and validation by the Science Based Targets initiative (SBTi) 10000 Achieved Carbon NeutralⓇ company certification for the fourth consecutive year Mitigated approximately 50% of our 2022 North America energy demand through the Azure Sky Wind Farm VPPA 33% representation of women on the Board of Directors Increased total representation of women globally to 24.9% 6000 4000 Launched NEX-GEN, a new ERG for young professionals at Synopsys South Asia Donated $4.7M to charities focused on STEM education, communities in which we work, and environment matters through Synopsys Foundation and Synopsys India Governance Success Management Sep Oct Nov Dec Mar Jun Jul Aug Sep Oct Nov Dec Jan Feb Obtained ISO 22301 certification, the international standard for Business Continuity Management Systems to help safeguard our business operations For more details, please refer to our 2022 ESG Report. Synopsys® © 2023 Synopsys, Inc. 31#32SYNDESYS THANK YOU Synopsys Silicon to Software