PTC Corporate Update
Rosemary Astheimer
Product Manager MCAD Interoperability
October 2010
Agenda
PTC: The Product Development Company
> We understand your challenges
> The PTC Product Development System
> Why we’re winning
> Our business strategy and results
2
PTC: The Product Development Company
Passionate
Innovative
Trusted
5,000 professionals
focused solely on
product development
solutions
Our ability to foresee
industry needs has enabled
us to be first to market with
powerful product
development solutions
Every year, more than 25,000
companies rely on us to help
give life to their product ideas
and to drive product
development success
3
Technology Leader in Product Development
Product Development System
Only integral PDS in the market
Best-ofbreed
solutions
Broad
Integral
capability
footprint
OOTB
architecture
Single best-selling PLM software
Outgrew
Industry
2004-2009
PTC PLM 15.5%,
PLM industry 7%*
880,000
Winning
active seats
benchmarks
and raising
the bar
*Source: AMR Research, CIMdata, IDC and company estimates
4
Committed to Helping Customers Realize Value
Identify value
Best
practices
Optimize
Plan
Program
governance
CUSTOMER
VALUE
Support
Proven
delivery
model
Validate
Value
scorecard
Deploy
Customer
value
roadmap
Adopt
5
Product Development Challenges
CHALLENGES
Global
competition
IT
fragmentation
Economic
factors
Workforce
demographics
Regulatory
pressures
Global product
development
IT
consolidation
Lean product
development
Web 2.0
technology
Compliance
management
INITIATIVES
6
Optimizing Product Development Processes is Critical
PRODUCT DEVELOPMENT LIFECYCLE
Organization
Design
Concept
Plan
Validate
Production
Support
Portfolio Management
Program Management
Project Management
Management
Environmental Performance Management
Regulatory Compliance
Quality & Reliability Management
Change and Configuration Management
Sales &
Marketing
Proposal Response
Requirements Capture and Management
Concept Development
System Design
Engineering
Detailed Design
Verification and Validation
Variant Design & Generation
Design Outsourcing
Sourcing
Early Sourcing
Component and Supplier Management
Manufacturing Process Management
Manufacturing
Tooling Design and Manufacture
Manufacturing Outsourcing
Product Support Analysis & Planning
Service
Technical Information Creation & Delivery
Performance Analysis & Feedback
7
Our Product Development System
Windchill
PPMLink
Windchill
RequirementsLink
Mathcad
Pro/ENGINEER
and other MCAD
Cadence,
Mentor, Zuken
Open Source,
Rational
Program Portfolio
Management
Requirements
Management
Engineering
Calculations
MCAD /
CAM / CAE
ECAD
Embedded
Software
ERP
Financials
SCM
MRP
Document
Management
Distributed
Collaboration
Workflow
Heterogeneous
CAD Data Mgmt
ECAD Data
Management
Business
Reporting
Communities
of Practice
Change &
Config. Mgmt
Complete BOM
Management
Visualization
Enterprise
Interoperability
SAP, Oracle,
Dynamics
Product
Lifecycle
Management
Service
Information
Manufacturing
Process Mgmt.
Quality, Risk
& Reliability Mgt.
Product
Analytics
Supplier
Management
Component
Management
Digital
Mockup
Arbortext
Windchill
MPMLink
Relex
InSight
Windchill
Supplier Management
Windchill
PartsLink
ProductView
8
Winning in the Marketplace
Large enterprises
Largest, brand name OEMs are repeatedly choosing PTC
2,000
On track
200+
Direct
accounts
to win 15 strategic,
domino accounts
through FY’10
other competitive
displacement
opportunities
underway!
Small & medium businesses
Thousands of SMB’s selecting PTC
4,000+
415+
new
customers
per year
channel
partners
focused on
SMB market
80%
of PTC
customer base
9
PTC’s Corporate Culture
Innovation
Customer
satisfaction
Community
Vision,
experience,
and focus
Committed
to customer
success
Developing the
engineers of
the future
10
Culture of Innovation
From our executives to our engineers – PTC’s global team has
vision, experience, and focus
1,950
575
employees
in R&D
employees
in QA
18
900
service
professionals
global
development
locations
100+
patents,
35 pending
James
(Jim)
Heppelmann,
President
&
Chief
Executive
Officer
Howard
Rhett,
Product
Manager,
Windchill
Workgroup
Managers
Lan
Chen,
Principal
Software
QA,
Windchill
Boris
Kruk,
Technical
Fellow
-Engineer,
Software
Development,
Core Geometry
Madhavi
Ramesh,
Product
Manager,
ProductView
Olga
Shekhtman,
Director,
R&D
Michael
Brook,
DVP,
Pro/ENGINEER
Product
Group Pro/ENGINEER
25
years
ofindegree
information
technology
industry
experience,
Co-founded
Windchill
Technology
20+
years
CAD/CAM
PLM
market
space
MS,
Computer
Science,
Eastern
Michigan
University
30+
applied
mathematics,
mechanical
and software
development
Co-founded
Visual
Collaboration
Technologies,
Inc.
Bachelor’s
in
Computer
Science,
Northeastern
University
Leading
the
development
of Pro/ENGINEER
& engineering
interoperability
U
of
MN
ITof
BS
ME,
University
Massachusetts
10
years
of
service
at
PTC
PhD,
ME,
State
Universityof Mysore, India
MS,
Computer
Science,
University
14
years
ofMoscow
service
atEE
PTC
Masters
of
Science,
12
years
service
PTC
13
4
years
ofof
service
atatat
PTC
8.5
years
of
service
PTC
11
Solid Business Results
Total revenue
($ millions)
Total non-GAAP
operating profit*
($ millions)
% = YOY growth
$1,200
$300
14.2%
11%
$1,000
8.0%
$250
-12.7%
19.8%
$800
$200
8.6%
$600
$150
$400
$100
$200
$50
$0
$0
2004
2005
2006
2007
2008
2009
2010
Guidance
*This presentation contains non-GAAP financial measures. A reconciliation between the non-GAPP measures and the comparable GAAP measures is located in the “Financial and Operating Metrics” document on the
Investor Relations page of our website at www.ptc.com.
12
PTC Corporate Strategy
Grow by solving important
customer problems
Run an
efficient operation
Our goals:
For investors: 20% sustainable earnings growth
For customers: Competitive advantage through product development
For employees: Great place to work
Be the leader in our
target markets
Deliver stable & predictable
business results
13
Analysts Validate PTC’s Leadership Position
“PTC endured the pain of a
five year rewrite to integrate
its software, while its
competitors have this
challenge ahead of them.”
– Needham Report, 2009
“PTC is rapidly transforming
itself from a secondary
competitor in a mature
computer-aided design (CAD)
market to the market leader in
PLM, a standalone enterprise
applications category with
excellent growth potential.”
– Longbow, 2010
14
The Optimum Growth Balance
Attractive
Achievable
Sustainable
Long-term financial targets
Revenue
Margin
EPS
FY2010 plan
Targeted growth rate
FY2014
$1,000
~ 13% CAGR
$1.6B
16%
~ 1% annually
20%
$1.00
~ 20% CAGR
$2.00
15
Superior
Excellent
Proven
Committed
technology
service, support
& value
strategy
for growth
to winning in
the market