Sassine Ghazi 2025 Letter to Stakeholders

Sassine Ghazi 2025 Letter to Stakeholders

Dear shareholders, customers, partners and colleagues,

One year into leading this special company, I am deeply honored and filled with immense gratitude for the trust our customers place in us every day to enable their innovation. 2024 was a transformational year for our company and the industries we serve. 2025 will be even more exciting.

Technology is at a strategic inflection point, creating unprecedented opportunity. We are in an era of pervasive intelligence where technology is seamlessly integrated into our lives. Three trends are fueling this era: AI, silicon proliferation and software-defined systems. These trends are increasing design complexity and cost, while driving greater compute and energy demands. New design paradigms and approaches are essential for the industry to thrive in this rapidly evolving landscape.

As a mission-critical enabler of silicon to systems design and innovation, Synopsys is in a unique position to tackle these challenges head-on. In my meetings with more than 100 customers and prospective customers this past year, one consistent theme stood out: Our opportunity to help maximize their R&D capability and productivity has never been greater. And we are racing to deliver!

2024: A Year of Transformation

In 2024, we doubled down on our silicon to systems strategy with the pending acquisition of Ansys, a leader in simulation and analysis. The future of technology R&D demands system design solutions with a deeper integration of electronics and physics, enhanced by AI. By joining forces with Ansys, we believe we're poised to deliver exactly that. This acquisition will expand our total addressable market (TAM) and, most importantly, provide customers with a comprehensive, powerful and system-focused approach to innovation. We continue to expect the transaction to close in the first half of 2025, and we are making strong progress to secure necessary regulatory approvals.

Last year we also sharpened our commitment to strategic portfolio management. This was highlighted by the successful sale of our software integrity business and increased investment in our core design automation and IP businesses. We maintained our relentless focus on innovation and technology leadership, which led to a record financial year and, most importantly, mission-critical silicon to systems design solutions for our customers.

Here are a few examples:

• We led the industry to establish AI as a core capability of modern chip design. We are helping customers achieve the next level of engineering productivity across the full EDA stack with the expansion of our Synopsys.ai suite to include AI-driven optimization, our data analytics suite with Synopsys.ai Copilot, and the addition of breakthrough GenAI capabilities.
• We played a foundational role in advancing 2.5D and 3D multi-die design and manufacturing, partnering with ecosystem leaders to improve predictability and yield for silicon designs.
• We unveiled our strategy to enable multi-fidelity, multi-domain and multi-level electronics digital twin (eDT) where hardware and software of complete electronic systems can be designed, validated and optimized virtually.
• We launched multiple industry-first silicon IP solutions for advanced standards like PCIe 7.0, 1.6T Ethernet and 40G UCIe. These solutions address the increased computing capacity, efficiency and security demands of the world's highest performance, AI-powered workloads.

Re-Engineering Engineering for the Era of Pervasive Intelligence

Looking ahead, the world will continue to become more intelligent, connected and complex. The products we use every day are increasingly software-defined, AI-powered and highly interconnected systems. Taming the growing complexity in product design requires a re-engineering of engineering.

Technology R&D teams need new tools, workflows and design paradigms that increase productivity by orders of magnitude. Engineers need to architect, design, simulate and analyze not just the electronic parts of the system, but also other physics domains, including thermal, mechanical, fluid dynamics and much more. They need the fastest, most cost-effective path to deliver their innovations - complete systems that meet the power, performance, cost and quality their customers expect.

At Synopsys, we strive to be a trusted and strategic partner to our customers, delivering silicon to systems design solutions that help them realize their ambitions. This is central to our 2025 priorities:

• Innovation and technology leadership. Deliver differentiated, high-quality and scalable engineering software and solutions for our customers while inventing the innovations that shape the next wave of silicon to systems investments.
• Sustainable growth. Deliver on our financial performance targets and, following regulatory approval and transaction close, realize synergies and opportunity expansion with the integration of Ansys.
• Efficient scaling to accelerate our strategy. Continue improving internal processes and systems within our new operating structure.

Driven by Passion, Guided by Purpose

While our ambitions are bold, they are achievable because of our employees around the world and our longstanding culture of trust, integrity, agility and the passionate pursuit of excellence. Our purpose guides everything we do. Synopsys exists to power innovation today that ignites the ingenuity of tomorrow.

To our customers who choose us every day, our partners who share our commitment to excellence, our shareholders who stand behind our vision and our more than 20,000 bright and passionate Synopsys employees who advance our bold ambitions every day - thank you.

There has never been a more exciting time to be in the technology industry, and Synopsys was made for this moment.

Sassine Ghazi