PTC : Q3 FY’21 Earnings Presentation

Q3'21	Investor Relations

EARNINGS PRESENTATION

July 28, 2021

FORWARD LOOKING STATEMENTS

This presentation includes forward looking statements regarding PTC's future financial performance, strategic outlook and expectations, anticipated future operations, and

products and markets. Because such statements deal with future events, actual results may differ materially from those projected in the forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in the appendix

to this presentation and in PTC's Annual Report on Form 10-K, Forms 10-Q and other

filings with the U.S. Securities and Exchange Commission.

IMPORTANT INFORMATION ABOUT OPERATING AND NON-GAAP FINANCIAL MEASURES

This presentation includes supplemental operating and non-GAAP financial measures and targets. Except where otherwise noted, all prior period financial results and future period financial expectations and targets are non-GAAP financial measures. The non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. The definitions of these items and reconciliations of non-GAAP financial measures to comparable GAAP measures are included in the appendix to this presentation.

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Q3'21 HIGHLIGHTS

JIM HEPPELMANN - PRESIDENT & CEO

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TRACK RECORD OF RESULTS

ARR GROWTH

FSG Core Growth ~14%- 16%

• Delivering double-digit ARR growth over past

three years and on track to achieve guidance

12% 10%

14%

range for FY'21.

• Consistent cash generation and on track to

achieve target operating cash flow ~$365M and

FCF ~$340M in FY'21.

FY'18	FY'19	FY'20	FY'21
			Guidance

CASH FLOW

	Cash From Operations	FCF
			$365$340
$248$212	$285
$221	$234$214

FY'18	FY'19	FY'20	FY'21
			Guidance

• Core business has delivered low double-digit

ARR (CC) growth over past 8 quarters, even

through COVID-19 pandemic.

• Growth business positioned to capitalize on the

adoption of SaaS.

• Brought emerging technologies to market

through innovation and alliances, including

Generative Design, Creo Simulation Live and

Creo Ansys Simulation and Vuforia Instruct.

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DELIVERING SHAREHOLDER VALUE

Pipeline

ARR

Cash Flow

Market

Demand

Top

Line

Bottom

Line

• Solid Q3'21 bookings growth in the mid - 30% driven by secular tailwinds.
• Industrial Digital Transformation catalyzed by pandemic-driven operational challenges.
• Customers creating frictionless supply chains, connecting products and factories, bringing digital to the frontline, enhancing employees with AI, and freeing workers from desktops.
• SaaS leader with solutions aligned to tomorrow's workforce, work methods, and workplace.
• ARR growth of 18% (15% CC); organic ARR growth of 14% (11% CC) at mid-point of guidance.
• Core businesses ARR growth continued to outpace the market.
• Growth businesses delivered over 20% YoY organic ARR growth.
• Strong ARR growth in Americas with stable demand trends in APAC and Europe.
• Revenue growth of 24% (19% CC), including Arena. Organic growth of 21% (16% CC).
• Healthy retention rates despite ongoing macro uncertainty.
• Strong operating and free cash flow of $88M and $85M, respectively.
• EPS growth with GAAP EPS of $0.43 up 43%, Non-GAAP EPS of $0.83 up 34% YoY.
• Operating and free cash flow in FY'21 continue to track to guidance.

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