Aspen Technology : AspenTech ACV Presentation

Annual Contract Value

Chantelle Breithaupt, CFO

August 8, 2022

Safe Harbor Statement

This presentation may contain forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may vary significantly from Aspen Technology's expectations based on a number of risks and uncertainties, including, without limitation, delays or reductions in demand for AspenTech solutions due to the COVID-19 pandemic; AspenTech's failure to increase usage and product adoption of aspenONE or other offerings or grow the aspenONE APM, OSI and SSE businesses, and failure to continue to provide innovative, market-leading solutions; declines in the demand for, or usage of, aspenONE software for any reason, including declines due to adverse changes in the process or other capital-intensive industries and materially reduced industry spending budgets due to the drop in demand for oil due to the COVID-19 pandemic; unfavorable economic and market conditions or a lessening demand in the market for asset process optimization software, including materially reduced industry spending budgets due to the significant drop in oil prices arising from drop in demand due to the COVID-19 pandemic; risks of foreign operations or transacting business with customers outside the United States; risks of competition; risks that acquisitions could be difficult to consummate and integrate into our operations, which could disrupt our business, dilute stockholder value or impair our financial results; and other risk factors described from time to time in AspenTech's periodic reports filed with the Securities and Exchange Commission.

Additional factors that could cause actual results relating to the transaction with Emerson to differ materially from AspenTech's plans, estimates or expectations regarding the transaction include, among others: (1) unexpected costs, charges or expenses resulting from the transaction; (2) uncertainty of the expected financial performance of the new AspenTech ("New AspenTech") following completion of the transaction; (3) failure to realize the anticipated benefits of the transaction, including as a result of delay in integrating the industrial software business of Emerson with AspenTech's business; (4) the ability of New AspenTech to implement its business strategy; (5) difficulties and delays in achieving revenue and cost synergies of New AspenTech and the risk factors described in Aspen Technology's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, as well as those contained in Amendment No. 4 to the Registration Statement on Form S-4, which was filed on April 14, 2022 by Emersub CX, Inc. related to a proposal to adopt the Transaction Agreement and Plan of Merger among Aspen Technology, Emerson Electric Co., EMR Worldwide Inc., Emersub CX, Inc., and Emersub CXI, Inc. and other filings, in each case as filed with the U.S. Securities and Exchange Commission. Aspen Technology cannot guarantee any future results, levels of activity, performance, or achievements. Further, Aspen Technology expressly disclaims any current intention to update any forward-looking statements after the date hereof.

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Overview of ACV1

ACV is an estimate of the annual value of our portfolio of term license and software maintenance and support (SMS) agreements

Provides insight into the growth and retention rate of our recurring revenue base

Leading indicator of recurring cash inflow

1ACV is a metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV.

© 2022 Aspen Technology, Inc. All rights reserved.

Demonstrates impact of DGM and SSE business model transformation to token models

Used internally to evaluate the growth and performance of our business

Primary corporate performance goal utilized for management compensation

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Topic 606 Impact on Revenue Model

• Topic 606 impacts the way we recognize revenue, but not the value we create for customers and investors
• Our license revenue is heavily impacted by the timing of bookings and, more specifically, the timing of renewals
• Bookings is defined as the total value of customer term license and perpetual SMS contracts delivered in the current period
• The timing of renewals is not linear between quarters or fiscal years
• Actual timing of renewal bookings can be impacted by early renewals

Long-term contracts, recurring revenue model, annual payments in advance, annual price escalations

Renewal Bookings by Fiscal Year*

FY 2023

FY 2024

FY 2025

FY 2026

FY 2027

* Renewal detail is for illustrative purposes only

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Topic 606 Revenue Model - Revenue Recognition

STEP	CONTRACT	STEP	PERFORMANCE	STEPS	ALLOCATE	STEP	RECOGNIZE
1	2		5
BOOKING	OBLIGATIONS	3+4 CONSIDERATION*	AS DELIVERED

Initial license	62% - 67%	Upfront
New products	< 1%	Ratably
Maintenance	30% - 33%	Ratably
Financing element	3% - 5%**	Ratably
Other	Variable	Variable

• Allocation values can change based on business conditions and external factors. The percentages presented are subject to change.
• Interest income is dependent on our estimate for our customer-specific incremental borrow rate and is subject to change.

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