PTC Corporate Overview

July 2012

Our Mission: Delivering Product and Service Advantage

Technology solutions that transform how products are created and serviced

Optimized Strategy & Planning: Sources of Enterprise Value

Strategy and Planning

The third industrial revolution: The future of competitive advantage is in strategy and planning activities Its about doing things better as opposed to doing better things Through smarter decision-making about how you design, engineer and service your products

Operations and Execution

The end of operationally-derived advantage: Operational improvement is approaching its limit Reliance on operational improvement alone will lead to product commoditization Continued competitive advantage requires a strong connection between operations and strategy

PTC Optimizes Strategy & Planning Across the Enterprise

Strategy Coordination
Systems Engineering Hardware Engineering Supply Chain Design Cost Management Requirements Application Engineering

PTC Optimizes Strategy

Software Engineering
Product Validation

Risk Management
Manufacturing Process Engineering Tooling Design

Service Engineering
Parts Planning Service Information Failure Analysis

Hardware & Software Engineering ERP Optimizes Operations

Master Data

Supply Chain & Manufacturing

Purchasing

Sales & Service

Demand Generation

Project Accounting

Logistics
Supplier Quality Production Scheduling Production Control

Pipeline Management
Contracts Service Scheduling Service Delivery Parts Logistics

Operational Coordination

Product and Service Advantage is Hard to Achieve

CAD
Inefficient concept design processes
Costs of creating drawings from designs Excessive design re-work Electro-mechanical design complexity

Service Lifecycle Management (SLM)

Inaccurate service information Service part accuracy High warranty costs Inefficient service processes Missed service and parts revenue opportunities

Product Lifecycle Management (PLM)

Optimizing resource allocation Managing teams for globalization Increasing demand for diversity Cost of poor quality

Application Lifecycle Management (ALM)

Rapidly changing customer requirements Complexity of software in products Coordination of software, mechanical & electrical design

Supply Chain Management (SCM)

Product & supply complexity
Pressure to reduce cost Global regulations on risk and compliance

Unique Approach to Solving These Challenges

Deep understanding of business process:

Industry leading software technology:

25 years of experience An entire team dedicated to working with customers Developed comprehensive view of key processes Process landscape

Industry-leading capabilities with breadth across the lifecycle Best of breed organic and acquired innovations

Customer engagement model that ensures value realization through:

Value Identification Technology roadmap planning Governance model

Unmatched integral and scalable architecture

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Opportunities for Process Transformation

PRODUCT LIFECYCLE

Organization

Plan Portfolio Management

Concept

Design

Validate

Production

Support

Program and Project Management Environmental Performance Management Management

Regulatory Compliance
Quality & Reliability Management Change and Configuration Management Concept Development System Architecture Design

Hardware & Software Engineering

Detailed Development Verification and Validation Variant Design & Generation Early Sourcing

Supply Chain & Manufacturing

Design and Manufacturing Outsourcing Component and Supplier Management Manufacturing Process Management Tooling Design and Manufacture Application Engineering Requirements Definition and Management Product Support Analysis & Planning Technical Information Creation & Management

Sales & Service

Product Support Information Delivery & Field Knowledge Management

Equipment Lifecycle Management Performance Analysis & Feedback
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A System of Market Leading Software Applications

Enables a single source of rich, digital truth that represents a complete view of your product
Computer-aided Design
CAD, CAM, CAE, and calculations.

Service Lifecycle Management (SLM)

Plan, manage, deliver and analyze service information, parts and warranty throughout the service lifecycle.

Application Lifecycle Management (ALM) Product Lifecycle Management (PLM)

Evolve the complete definition of a product over its entire life. Manage product requirements, system models, software configurations, test plans and defects.

Supply Chain Management (SCM)

Manage components and suppliers, measure and manage compliance, and analyze product cost.

PTC Markets and Anticipated Growth

CAD ~$600M 5-8% Growth

Service Lifecycle Management (SLM) ~$90M 15-20% Growth

Product Lifecycle Management (PLM)

Application Lifecycle Management (ALM) ~$90M 15-20% Growth

~$500M 10-15% Growth

Supply Chain Management (SCM) ~$50M 15-20% Growth

Engagement Model Focused on Product & Service Advantage

Value-centric Engagement
Transformation starts with people Value: The payoff of transformation Roadmap: The phases of the journey Governance: Avoiding surprises

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Opportunities for Product and Service Advantage

PLM

ALM

SLM

80%
improvement in design and process reuse1

50%
reduction in product development rework5

89%
customer retention rate achieved by best-inclass service organizations9

2X
profit improvement opportunity by reducing COPQ to 10% of sales2

2X
quality improvement in product development with increase to 15-20% in systems engineering effort6

40-80%
of all company profit can be directly attributed to aftermarket services10

CAD

SCM

19%
increase in product revenue by employing enterprise 3D product model best practices 3

80%
reduction in overall compliance program costs 7

32%
shorter development cycle length by employing Multi-CAD best practices 7
Sources: Referenced in Notes Page

3-8%
reduction in cost of goods sold8

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Ingersoll Rand Standardizes PD Processes With PTC PLM

A market-leading diversified industrial company making environments safe, comfortable and efficient by serving global, commercial, industrial, and residential markets

This is the second fastest return on investment of any IT project weve had in the company because this does translate into efficiencies and gains on the supply side and the COGS [cost of goods sold] side of our product.
Michael Marcie
VP, IT Architecture & Strategy Ingersoll Rand

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Microsoft Uses PTC CAD Solutions for New Product Introduction

Microsoft is a global technology leader that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing ranging from their Windows operating system to their Xbox 360 gaming device.

The incredible speed and flexibility of direct modeling has enabled us to achieve results that would not have been possible with a parametric approach. Each method has unique advantages, so the blending of these capabilities in Creo enables users to access the extended capabilities of both. The result is a toolset that is powerful, flexible and very fast.
Michael Baseflug
Mechanical Engineering Manager, Kinect Microsoft
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Continental Uses PTC ALM Solutions to Achieve Value From Systems Engineering

Continental is a tier one automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomer products

We have seen significant improvements in product development efficiency as well as improvements in warranty claims. It has a real bottom line effect.
Andr Radon
Continental

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Nikon Implements PTC SCM Solutions for Single Source of Service Information
Nikon provides maintenance and repair information for custom photolithography equipment

Consolidated data sources into a single-source of service information for improved field performance. Mitigated financial penalties related missed SLA around equipment uptime

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Great Success Stories

CAD

Service Lifecycle Management (SLM)

Product Lifecycle Management (PLM)

Application Lifecycle Management (ALM)

Supply Chain Management (SCM)

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Unmatched Expertise in Multiple Vertical Markets

Aerospace & Defense Automotive Electronics & High Tech Industrial Retail & Consumer Medical Devices

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PTC: Recognized as a Global Leader

6,000
employees

27,000+
active customers

1,950
employees in R&D

1,186,000+
active Windchill Seats

1,375
service professionals

800+
partners
(including VAR, software, hardware, service and training)

100+
sponsored FIRST Teams
(For Inspiration and Recognition of Science & Technology)

10 million
students trained worldwide through the PTC Global Academic Program

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Solid Business Results

Total Revenue ($ millions) Total non-GAAP operating profits* ($ millions)
% = YOY growth $1,300

FY 2011 REVENUE BY VERTICAL

Other: Life Sciences:

12% 9%
$275 $250
Retail & Consumer:

4%
Industrial Products:

7%
$1,200

29%

16%
$225

Automotive:

12%
Electronics & High Tech: Federal, Aerospace & Defense:

$1,100

$200

16%
FY 2011 REVENUE BY REGION

8%
$1,000

19%

$175 $150

$900 $125 $800 2009 2010 2011 **2012 Guidance $100

NA:

37%

Europe:

40%

AP:

23%

* This presentation contains non-GAAP financial measures. A reconciliation between the non-GAAP 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. ** Represents FY12 guidance range.

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Workforce Development
Preparing and inspiring the next generation STEM professionals Over 3000 Customers
PTC Global Talent Hub:

4th Grade:

5th Grade:

Middle High School: School:

STARBASE 2.0 FIRST

University/ College:
Modern Product Development Education

Authorized Training Centers:

Authorized Assessment Centers:

Design & technology in primary schools

STARBASE

FIRST

SAE Collegiate Design Competitions

120 hours of in facility training

Assessment based on PTC University

Linking students to careers with 27,000 PTC customers

RWDC

Scalextric for Schools

PTC Design Challenge

WORKFORCE DEVELOPMENT

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Q2 Review: India

Competitive Displacements/Wins: India FY12-Q2 *

1. ADAMAS 2. Bengal Engineering College 3. Central Institute of Plastics and Engineering 4. Christ University 5. Dhamangaon College of Engineering 6. DY Patil Institute of Technology 7. Ganapathy Chettiyar College 8. JSPM 9. Gogte Institute of Technology 10. KSR Institute 11. Lyola College of Engineering 12. MRK Institute 13. Nadar Saraswati 14. Raisoni College 15. Sai Spoorthi Institute 16. St. Michales College 17. Osmania University * 12 wins v. Solidworks

Job postings for Pro/E in India compared to 2011 has increased by 66%

Job Postings (India)

0 Pro/E Autocad Inventor Solidworks Catia Solidedge 271 390 250 453 959 500 1000 1500 2000 2500 2248 2604 3000

UG

Job postings as of 5th April, 2012 (source: www.indeed.com)

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