We re Committed to Your Success. C. Richard Harrison President & CEO June 5, 2006

Transcription

1 We re Committed to Your Success C. Richard Harrison President & CEO June 5, 2006

2 In Every Industry, You Face Increasingly Complex Challenges Retail, Footwear and Apparel Electronics & High Tech Electro-Mechanical PD Component & Supplier Management Design Outsourcing Fast Fashion Line Planning New Product Introduction Life Sciences New Product Introduction Regulatory Compliance Technical Publications Industrial Global Product Development Process Standardization Detailed Design 2

3 We re Responding By Continuing to Bring You the Best Technology Celebrated Milestones Arbortext Acquired Pro/ENGINEER launched First to market with parametric, associative feature-based, solid modeling Initial Public Offering as PMTC Windchill launched First to market with Internet based solutions for PLM Computervision Acquired PTC Surpasses 20,000 Customers Windchill PDMLink launched Pure internet architecture solution for product data management PTC Surpasses 35,000 Customers Pro/ENGINEER Wildfire launched First CAD system to fully support Web services IndustryWeek Once Again Names Pro/ENGINEER Technology of the Year Leader in Dynamic Publishing Acquired Polyplan Technologies for MPM Acquired Aptavis Technologies for Footwear and Apparel Mathsoft Acquired Industry Standard Engineering Calculations Solution Windchill XML content management Company Founded PTC Surpasses 25,000 Customers IndustryWeek names Pro/ENGINEER Technology of the Year Quick Start Reduces PLM Implementation to Weeks Windchill ProjectLink launched Pure Internet architecture solution for project collaboration PTC s Product Development System (PDS) The only integral PLM solution available OHIO Design Automation Acquired for ECAD Integration Launched Global Product Development (GPD) Initiative PLM On Demand launched Strategic partnership with IBM 3

4 And Delivering That Technology as an Integral System Combines our four core PTC product families into an integral system differentiated by: Openness and heterogeneity Broad footprint Create, Collaborate, Control, Communicate Clean architecture Internet, Integral, Interoperable Easy to use Scalable to meet the needs of a global supply chain Create digital content Communicate via Dynamic Publishing Collaborate globally Control data that drives product success 4

5 We re Growing our Portfolio and the Industries We Serve Expanding our product and service portfolios Technical Publications Manufacturing Process Management Engineering Calculations Product Development Consulting Expanding the vertical industries that we serve Retail, Footwear, and Apparel Life Sciences Publishing Government Airlines 5

6 We re Providing World-Class Services to Help You Realize Value PTC s Global Services aligns all elements for a total solution Strategy Process Operating Model Technology Global Services Portfolio Assessments: Identify value opportunities and define the best execution plan Product Development Consulting: Lead with best-in-class processes Implementation: Deploy technology with minimum disruption Education: Accelerate adoption and boost productivity Maintenance: ISO 9001-accredited 24x7 worldwide support 6

7 We re Making it Easier to Work with Us Customer satisfaction is at an all-time high Recent Improvements Click-wrap licensing Simplified license agreement Business asset summary tool Items we re working on Paperwork reduction Maintenance quote simplification Single point of contact Customer Satisfaction Index Q3'05 Q4'05 Q1'06 Q2'06 7

8 We re Working From a Strong Financial Base $ in millions, excluding EPS Revenue FY 2006 Target $810 - $820 FY 2005 Actual $721 FY 2004 Actual $660 FY 2005 Performance: Strong year-over-year revenue growth at 9% YOY Growth % 12% - 14% 9% (2%) 21% improvement in operating profit Operating Expense* $690 - $700 $618 $575 43% improvement in net income Operating Profit* ~ $120 $103 $85 FY 2006 Targets: Operating Margin (%)* ~ 15% 14.3% 13.0% Accelerated revenue growth Net Income* $100 - $108 $87 $61 Improved profitability EPS* Cash $ $0.94 >$200 $0.78 $204 $0.56 $295 Putting cash to work for customer and shareholder benefit *Non-GAAP results exclude certain GAAP expenses, i.e., acquisition-related and stock-based compensation expenses; Net income and EPS also exclude one-time tax benefits and tax effect of excluded items 8

9 Our Goal: $1 Billion in Revenue & $200 Million in Non-GAAP Operating Profit PTC Revenue ($ in millions) FY % CAGR PTC Operating Margin (%) FY bps/yr PTC Financial Goals Accelerated revenue growth to $1B by 2008 Continued margin improvement to ~20% by 2008 How We Will Get There Drive organic growth by continually improving product quality and making products easier to use and implement Make high-quality acquisitions that drive customer and shareholder value Selectively target new markets Drive SMB market success Deliver high-value services 9

10 We re Committed to Buying Only the Best Technology Arbortext Mathsoft Aptavis OHIO Design CADTrain XML authoring and dynamic publishing Industry standard for authoring and documenting engineering calculations Windchill-based FlexPLM for Retail, Footwear, and Apparel Leading application for EDA visualization, verification, and collaboration 800+ hours of Pro/ENGINEER elearning courses Polyplan Best of breed manufacturing planning capabilities 10

11 Arbortext Extends Our Enterprise Applications Allows companies to create reusable components of content and publish to a variety of media types Acquired in July 2005 Combination of PTC and Arbortext products creates industry s only integral solution for complex documentation process Significant customer benefits: Faster time-to-market Improves accuracy/quality/relevance of documentation Reduces documentation/translation cost Faster approval for regulatory compliance Over 1,700 customers (1,000 in manufacturing) Anticipated market growth 25% - 30% 11

12 Mathsoft Extends Our Desktop Applications Mathsoft s Mathcad product is the industry standard for engineering calculations Acquired in April 2006 Natural extension of PTC s Product Development System: enables discrete manufacturing customers to achieve an optimized product design faster Deepens and differentiates PTC s CAD, CAE, and PDS offerings Expands PTC s footprint into additional industries Extends PTC s high volume marketing, sales & distribution capabilities 12

13 We re Committed to Providing You the Best Customer Experience Account Management Global Account Management Lower Account-to-Rep Ratio Low Sales Rep Turnover Focused Overlay Teams Measured on Customer Satisfaction Strong Reseller Channel Process Improvement & Technology Deployment Project Quality Reviews Project Management Certification Improved Deployment Methods Expanded Service Packages Broader Training Solutions On-Going Maintenance Enhancement-rich Releases Direct Access to Tech Support Online Self-Service Tools 13

14 We re Building a Partnership with IBM New agreement with IBM establishing formal relationship with PLM Solutions Business effective January 1, 2006 Primary market is China Target account strategy in Europe and US Identified industries: Electronics, Consumer Packaged Goods, Life Sciences IBM dedicated PTC practice for sales and marketing Joint Marketing Programs Cooperative Funding IBM Solutions Center Support Ongoing integration of IBM and PTC solutions: AIX, WebSphere Augments existing relationships with IBM in Business Consulting Services Group, Server and Technology Group, Global Services, and Software Group Continuing to grow the existing PTC Windchill OnDemand solution hosted by IBM 14

15 We re Committed to Helping You Win Expanding our products and services Strong financial position Best technology and deepest IP Broad service portfolio Clear path for managed growth Committed to your success 15

16 Thank You