Synopsys : Corporate Overview for Investors (December 2, 2020)

Forward-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; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our results; and the expected impact of the COVID-19 pandemic. 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 our forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks from the effect of the COVID-19 pandemic and the associated economic downturn on our business, operations and financial condition; uncertainty in the growth of the semiconductor and electronics industries; 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 as well as actions by the U.S. or foreign governments, such as measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions; macroeconomic conditions and uncertainty in the global economy; fluctuation of our operating results; increased variability in our revenue due to the adoption of ASC 606, including the resulting increase in recognizing upfront revenue as a percentage of total revenue; and more.

Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings it makes with the Securities and Exchange Commission from time to time, including in the sections entitled "Risk Factors" in its Annual Report on Form 10-K for the fiscal year ended October 31, 2019 and in its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 2, 2020. Synopsys undertakes no duty, 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.

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 verbally to their most comparable GAAP measures are included in the table at the end of this presentation, along with the fourth quarter and fiscal year 2020 earnings release and financial supplement, dated December 3, 2020, and available on Synopsys' website athttps://www.synopsys.com/company/investor-relations/financial-news.html.

(1) These targets were provided by Synopsys as of December 2, 2020, and are not being updated at this time; a GAAP to non-

GAAP reconciliation of FY21 Operating Margin targets and FY21 EPS targets are included at the end of this presentation

Electronic Design

Automation

>30 years of investment and execution

~65% of revenue

Market Leader

L-T growth: mid-high single-digits*

* These multi-year objectives are provided as of December 2, 2020

Long-Term Financial Objectives1

• • While the results in any given period may vary due to acquisitions or other near-term priorities, our primary long-term objective is to drive double-digit non-GAAP EPS growth on a multi-year basis, through a mix of the following elements:

• • Grow total revenue2 generally in the high single-digit range:

• • Drive non-GAAP operating margin into the high-twenties by 2021 and greater than 30% longer-term

• • Utilize our strong cash flow primarily for M&A and share buybacks

  • 1. These multi-year objectives are provided as of December 2, 2020

  • 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 ASC 606 adoption, should be expected.

Synopsys: The Market and Technology Leader

Uniquely Positioned for

Stability and Growth

► Robust End Markets

Driving Growth

• • Clear Technology Leadership

• • Financial Strength and Growth

Global Value Chain - 2020E

EDA & IP - At the Heart of Accelerating Electronics Innovation

EDA & IP	Embedded Software	Foundry	Semiconductors	Electronic Systems
$11.9B	$11.6B	$86.1B	$449.1B	$1,530B

Sources: ESD Alliance (Q3 2020), Ipnest (Apr 2020), MarketsandMarkets (Mar 2020), IC Insights (Sep 2020), Internal estimates (Oct 2020)

Blue Chip, Diversified Customer Base

Semiconductors

• • Semi R&D (including EDA) is a top investment priority for semi and system customers in all phases of business cycle

• • Consists of virtually all semiconductor companies in the world, including all of the top 20

• • One >10% customer in FY20

Systems

• • ~40% 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

Software Developers

• • Key function across all industries: semis and systems, to enterprises in segments such as financial services, medical devices, automotive, and industrial

• • Targeting the 20M+ SW developers

• • Immense software complexity challenges plus high impact of security vulnerabilities

New Technology is Impacting Every VerticalArtificial Intelligence Market Growth

Deep Learning Chipset Market to Reach $72B by 2025

Deep Learning Chipset Revenue, World Markets: 2018 - 2025

$80,000

$70,000

$60,000

($Millions)

$50,000

$40,000

$30,000

$20,000

$10,000

$0

2018

2019

2020

2021

2022

2023

2024

2025

Source: Tractica 2019

Synopsys tools incorporate AI/ML technologies while enabling AI processor development

Design and Verification

Tools for AI Processors

• • Multiple years of collaboration alongside AI pioneers - deep understanding of AI design implications and challenges

• • Verification solutions from architecture to simulation to emulation and prototyping

• • Fusion Design Platform™ significantly enhanced to address AI processor design challenges

Synopsys tools incorporate AI/ML technologies while enabling AI processor development

Leading AI-based Chip

Design Technologies

• • DSO.ai (Mar. 2020): The world's first autonomous AI app for design, delivers a leap in designer productivity

• • "ML Everywhere" enables continuous improvement for better PPA and faster TTR

• • "Synopsys's PrimeTime with new machine- learning technology allows us to complete ECO runs in hours versus the days it took before, and reuse learnings across blocks, hierarchies, and even design styles." - Renesas

Synopsys tools incorporate AI/ML technologies while enabling AI processor development

IP Solutions Designed for AI Applications

• • Proven IP solutions accelerate time-to-market

• • Memory/interface/analog IP designed to handle the uniquely intensive AI demands of memory capacity, bandwidth and coherency

• • ABI Research forecasts AI chipset sales to exceed $10B in 2024 with SoCs across all markets containing AI capabilities

Algorithm Optimization

Memory Bandwidth/ Storage Capacity

Chip-to-Chip BandwidthChip-to-Chip Cache

CoherencyCloud ConnectivityCMOS Image InputInference Model

OptimizationVideo InputVideo InputAudio InputSensor InputSensor Input

Automotive

CHIPS

4 Billion transistors

SYSTEMS

Infotainment, GPS, Drivetrain, Sensors

SOFTWARE

>150M Lines of Code per vehicle

ARTIFICIAL INTELLIGENCE

Big Data, Capture, Analyze, Decision Making

AUTONOMOUS DRIVING

Systems of Systems

OWNERSHIP & INFRASTRUCTURE

Entire Ecosystem

New Electronics Architecture Required

Integrated Compute and Smart Sensor Architecture Requires Redesign

DOMAINS

• • Integrated Controllers per Domain

• • Sensor Fusion

• • Connectivity and upgradeability

• • Highest reliability, security and safety

Automotive Opportunity: Quality, Safety, & Security

SAFETY

Functional Safety Compliance

(MISRA, ISO26262)

Supply chain total health with

Software BoM

HARA/TARA analysis for connected systems

SECURITY

Find known vulnerabilities in open-source & 3rd party code

BSIMM / Map to assess cyber security standards readinessRemediation plan execution

Advanced Process Development ContinuesSynopsys: The Market and Technology Leader

Uniquely Positioned for

Stability and Growth

• • Robust End Markets Driving Growth

► Clear Technology

Leadership

• • Financial Strength and Growth

Synopsys: Silicon to Software

Software

• •• Apppplilcicaattioionnsseeccuurritityy&qquuaaliltityytteessttiningg

• •• LeaderrininGarrttnerr's'sMagicicQuadrrantt

  Verification

• •• Faasstteesstteenngginineess &uunnififieieddpplalattffoorrm

• •• HW//SW vveerrifificicaattioionn&eeaarrlylySW bbrriningg--uupp

• •• Brrooaaddeessttppoorrttffooliloioooffssiliilcicoonn--pprroovveenn IIP

  IP

• •• ##11inintteerrffaaccee,,eembbeeddddeeddmeem..&pphhyyssicicaall IIP

• • Digital & custom AMS platforms

  Design

  • • Long-standing market leader

    • • Digital & custom AMS platforms

• • Best quality of results & highest productivity

• • Best quality of results & highest productivity

Silicon

•• TCAD,,liltithhooggrraapphhyy ttoooolsls&yyieieldld ooppttimimizizaattioionn •• Doownn ttoo55nnm& bbeelolow

LEADER IN EDA

• • Market and technology leader in EDA, the tools and technologies used to design semiconductor chips and systems

  ~$7.3 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 platforms with unmatched global support

* Source: ESD Alliance (Q3 2020), Internal estimates (Oct 2020)

#1 in Digital Design: Synopsys Fusion Design Platform™

Trusted Anchor Products, Correlated Platform with Synergistic Value Links

ML

FUSION DESIGN PLATFORM

RTL Architect

Test Fusion

Design Compiler

NXT

TestMAXFusion Compiler

IC Compiler II

Signoff Fusion

Formality / ECO

PrimeECO

PrimeTime	StarRC
PrimePower	IC Validator
PrimeShield	RH Fusion

Trusted Anchor Products

#1 Synthesis, #1 P&R, #1 Signoff Machine Learning Technologies Fusion: algorithms, engines, data model

Correlated Platform with Value Links

Deep Integrations Across Platform In-Design Physical Signoff Co-Design Custom Implementation

Synopsys Fusion Compiler™

• • Only single product on market with innovative next-generation integration of synthesis, place & route and key signoff technologies

• • Built with market-leading products

• • Redefines conventional product boundaries; sharing of algorithms, code and data model

• • New synthesis engine, developed from ground up for significantly higher capacity & performance

• • Strong momentum with considerable benchmark wins and competitive displacements, driving accelerating digital design revenue growth

Synopsys Custom Compiler ™ Adoption Growing

ML

CUSTOM DESIGN PLATFORM

Custom Compiler	HSPICE FineSim CustomSim
Formality / ECO PrimeECOPrimeTime PrimePower PrimeShield StarRC IC Validator RH Fusion

Custom Compiler Adoption

160 140 120 100 80 60 40

20

0

Customers

#1 in Digital/Functional Verification

Verification Continuum™ Platform

VERIFICATION CONTINUUM™ PLATFORM

• • Complete platform with #1 products in all categories

• • Industry's highest-performance engines

• • Uniquely positioned for early software bring-up

• • Domain-specific solutions for automotive, 5G and AI designs

• • Accelerating innovation with investments incloud and machine learning technologies

Verification Hardware: ZeBu® Server 4 Emulation System

Leading System for Software Bring-up

Only modern system to allow software-on-hardware validation

Industry's Fastest Emulation System

2x higher performance

Industry's Largest Capacity

Scalable to 19B+ gates

Industry's Lowest Total Cost of Ownership

1/10th lower power consumption, half data center footprint

ZeBu Server 4

#1 in Analog/Mixed Signal Simulation

ML

CUSTOM DESIGN PLATFORM

Custom Compiler	HSPICE FineSim CustomSim
Formality / ECO PrimeECOPrimeTime PrimePower PrimeShield StarRC IC Validator RH Fusion

• • Market leader for >20 years

• • Close collaboration with leaders in memory, automotive IC and high-performance computing

Leader in Semi 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 - ~$3.9 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) & latest processes and protocols

• • ~20 years of investment and commitment resulting in unmatched portfolio breadth, quality and reliability

* Source: Ipnest (Apr 2020); Internal estimates (Oct 2020)

Synopsys DesignWare® IP

Synopsys Portfolio

* Small boxes are standard cell library elements.

• • Broadest portfolio available in the market; FY20 revenue >$900M

• • Covers vast majority of chip

• • Growing demand for more integrated subsystems

• • New markets drive new opportunities

• • Customers count on us for the long haul to accelerating time-to-market and reduce risk

High-Impact Markets: Increasing Technology Complexity

Driving Growth in Third-Party IP Demand

Comprehensive IP Solutions for Cloud Computing SoCs

DesignWare® Interface, Foundationand Processor IP for Cloud Applications

• • Interface IP: PCIe 5.0, CXL, HBM2/2E, DDR5, 112G Ethernet, Die-to-Die

• • Foundation IP: specialty memories & logic libraries

• • Processor IP: ARC HS Processors

Leading Software Integrity Platform

• • Entered the software security & quality space in 2014

  • - Assembled and developed the broadest portfolio of solutions on the market; $358 million revenue in FY20

  • - Solutions allow software code developers to fix security and quality defects early in development

  • - Approximately $2-2.5 billion served market: fragmented, with numerous point solutions; recognition of cost of software failure has increased dramatically

  • - Synopsys Polaris Software Integrity PlatformTM enables customers to fully leverage the strength of the core products and integrate Synopsys into critical development workflows

Software Security & Quality Market

• • Evolving, nascent market

• • Growth drivers:

  • - Omnipresence of software

  • - Widespread connectivity exacerbates security issues

  • - Significant business risk from breaches

  • - Large development teams

• • Market growth rate: mid-teens %

• • Synopsys L-T multi-year growth objective: ~15-20% range as the market evolves*

1. AST, TVM/VA, cloud security

Sources: Gartner, Forrester, IDC, other external and internal analyses

*This multi-year objective is provided as of December 2, 2020

Growing the Software Integrity Platform - AcquisitionsThe Most Complete Portfolio in the Industry

Static Analysis

• • Find critical defects and vulnerabilities in code

• • Runs in the dev environment and DevSecOps workflow

• • OWASP Top 10 and CWE Top 25

• • Automotive compliance (MISRA, ISO26262)

Software Composition Analysis

• • Find known vulnerabilities in open-source & 3rd party code

• • Identifies license and compliance risks

• • Tests source and binaries in apps and containers

• • Supply chain total health with SW BoM

Dynamic Analysis

• • Tests running apps for security vulnerabilities

• • Enables dev to fix security flaws early in the SDLC

• • API Scanner for IoT devices and mobile backend servers

• • Fuzzing for automotive protocols and 5G

Security Services

• • Strategic analysis to build Software Security Initiative

• • DevSecOps integration injects security into dev workflow

• • Managed services provides full testing capabilities

• • Architecture/design modeling eliminates software flaws

Synopsys Polaris Software Integrity PlatformTM

• • Integrates and orchestrates testing of all kinds

  • • Consolidated reporting for a clear view of risk

    • • The Synopsys portfolio, including managed services

  • • Allows for direct alignment between product and services to increase cross-selling opportunities

    • • Third party products

• • Includes key DevOps feature: plug-in to enable developers

• • Intelligent, policy driven orchestration

to find/fix vulnerabilities directly from desktop

Synopsys recognized as a leader for the fourth year in a row

2020 Gartner

Magic Quadrant for Application

Security Testing

Download a free copy of the2020 Magic Quadrant for Application Security Testing.

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 requesthere.

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 Mark Horvath, Dionisio Zumerle, and Dale Gardner, April 29, 2020

© 2020 Synopsys, Inc. 36

Synopsys is the only vendor recognized as the leader in both SAST & Open Source (SCA)

Download a free copy ofThe Forrester Wave™: Software Composition Analysis, Q2 2019

Trusted Partner to >4,000 Companies

17 of the Top 25	5 of the Top 5	9 of the Top 10	5 of the Top 5	14 of the Top 15	3 of the Top 4
Commercial	Financial Data	Software	Aerospace &	Semiconductor	U.S. communications
Banks	Services Firms	Companies	Defense Firms	Manufacturers	providers

Our mission is to help build secure, high-quality software faster

Growth Strategy

• • Leverage the Polaris Software Integrity PlatformTM

  Polaris, coupled with the strength of the core products, enables selling across the entire portfolio to increase revenue potential and create strategic relationships with customers

• • Highlight Differentiating Consulting Services

  Services for high-level benchmarking, security strategy/transformation, program development guidance and large product deployments

• • Refine and Scale Field

  • - Sales channel: leverage international presence; continually enhance capacity and focus on large enterprise customers, key verticals and the growing adoption of DevSecOps and securing the Cloud; indirect channel program

  • - Emphasis on customer success to ensure long-term relationships

Balance near-term growth and profitability with investments to capitalize on long-term opportunity

Synopsys: The Market and Technology Leader

Uniquely Positioned for

Stability and Growth

• • Robust End Markets Driving Growth

• • Clear Technology Leadership

► Financial Strength and Growth

Excellent Financial Execution

Revenue (M)

$4,000 - $4,050

(8.5% - 10% y/y)

$3,685

FY16

FY17

FY18

FY19

FY20

FY21 E**

Nearly 90% recurring revenue model with $4.9B noncancellable backlog provides stability throughout the business cycle***

* A GAAP to non-GAAP reconciliation of FY16 to FY21E earnings per share is included at the end of this presentation ** FY21E reflects guidance provided as of December 2, 2020 *** We define recurring revenue as revenue generated from time-based products, multi-period IP contracts, and maintenance and services, for which revenue is recognized over time

Cash Flow & Capital Allocation

Operating Cash Flow (M)

$1,200 - $1,300

Stock Repurchases (M)

$400

$400

$400

$991

$801

$587

$635

$424

$329

$242

FY16

FY17

FY18*

FY19

FY20

FY21E**

FY16

FY17

FY18

FY19

FY20

•	Roughly tracks EBITDA less cash taxes	•
Repurchased ~$1.8B in stock in past 5 years
on multi-year basis	•	Expect to increase total buybacks in FY21 vs
FY20
•	Variable from year to year, based	•
Capital allocation priorities:
mainly on timing of large contracts	‒ Internal investments
and payments	‒ Buybacks and acquisitions

* Includes approximately $230M in one-time payments ** FY21E reflects targets provided by Synopsys as of December 2, 2020

Corporate Social Responsibility

We recognize that the future of Smart Everything is not smart if it is not sustainable, fair and secure. Our 'Smart Future' Corporate Social Responsibility (CSR) program provides a focus and structure for how we address both our own operational impact on the world and our ability to influence others around us. For example, we are

• ▸ Reducing our own GHG emissions by 25% by 2024, and using our influence to enable low energy computing globally

• ▸ Building security into our products, and helping our customers do the same

• ▸ Improving diversity and inclusion in our business, and helping more people everywhere access and benefit from technology

Market and Technology Leader

Electronic Design Automation

Semiconductor Intellectual Property

Software Security & Quality

Solid Financials

Recurring revenue model Large, non-cancellable backlog

Excellent execution

Earnings Per Share - Full Fiscal Year 2021 Targets

Target GAAP earnings per share Adjustments:

Estimated impact of amortization of intangible assets Estimated impact of stock compensation

Range for Fiscal Year

October 31, 2021(1)Low $

High

4.39 $ 4.54

0.48 0.45

2.16 2.10

Shares used in non-GAAP calculation (midpoint of target range)

Estimated impact of tax adjustments Target non-GAAP earnings per share

(0.80) (0.79)

$

6.23

$

6.30

157,500

157,500

(1) Synopsys' fiscal year will end October 30, 2021. 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 December 2, 2020.

Operating Margin - Full Fiscal Year 2020 and Midpoint of 2021 Targets

(1) Synopsys' fiscal year 2020 ended on October 31, 2020, and its fiscal year 2021 will end on October 30, 2021. 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 December 2, 2020, and do not represent official guidance for fiscal year 2021.

Twelve Months Ending	Twelve Months Ending
October 31, 2020 (1)	October 31, 2021 (1)(2)
GAAP operating margin	16.8%	19.3%
Amortization of intangible assets	2.5%	1.8%
Stock compensation	6.7%	8.3%
Acquisition-related costs	0.4%	0.0%
Restructuring charges	1.0%	0.0%
Change in value of non-qualified deferred compensation	0.6%	0.0%
Non-GAAP operating margin	28.0%	29.4%

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 December 2, 2020.

Earnings Per Share - Full Fiscal Years 2016 to 2020 Actual Results

ASC 605

ASC 605

ASC 605

ASC 606

ASC 606

• FY 2016

  • FY 2017

    • FY 2018

      FY 2019

      FY 2020

      GAAP diluted net income per share Adjustments:

      $

• 1.73 $

• 0.88 $

• 2.82 $

3.45 $ 4.24

Amortization of intangible assets Stock compensation Acquisition-related costs Restructuring charges Legal and tax matters

Income tax related to transition tax Income tax related to tax rate change Income tax related to tax restructuring Tax Impact of repatiation

Tax settlement

Tax adjustments

0.84 0.63 0.07 0.06 - - - - - - (0.31)

0.05 - - -

0.17

(0.12)

0.41

0.33

(1.12)

1.07 -

- -

(0.28)

(0.65)

- - - - 0.11 (0.89)

- - - - - - (1.13)

Non-GAAP diluted net income per share

$

3.02

$

3.42

$

3.91

$

4.56

$

5.55

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 December 2, 2020.

0.70

0.82

0.65 0.59

0.70

0.91

1.01 1.53

0.06

0.14

0.04 0.09

0.24

0.08

0.31 0.23