Confidential Merger Acquisitions An IT Perspective Hasmukh Ranjan

Confidential Merger & Acquisitions: An IT Perspective Hasmukh Ranjan Sr. IT Director Synopsys Internal Presentation

A G E NDA © 2006 Synopsys, Inc. (2) Synopsys M&A Processes Getting Started; T=0 Environment Integration; T<60 Synopsys Confidential Predictable Success

A G E NDA © 2006 Synopsys, Inc. (3) Synopsys Intro M&A Processes Getting Started; T=0 Environment Integration; T<60 Synopsys Confidential Predictable Success

Enabling the Electronics Industry EDA Industry Systems Market size: > $5 B Supports a $ trillion electronics industry Generally grows with semi R&D spend SNPS Financial Profile Fabless IDM FY 06 Revenue $1. 1 B Backlog $2. 0 B Quarterly revenue in hand > 90% Strong Global Presence ½ of Revenue non-US Equip. Foundries ~5, 100 employees, 30% in low-cost regions © 2006 Synopsys, Inc. (4) Predictable Success

Excellent Execution & Results Total Revenue ($ in millions) Non-GAAP EPS * Q 3 Revenue up 10% Q 3 EPS up 52% * Q 107 included an extra fiscal week Non-GAAP Ops Margin Q 3 Ops Margin up 400 bps © 2006 Synopsys, Inc. (5) > Cash $500 MFrom Cash. Operations (no debt) ($ in millions) Q 3 Cash from Ops: $116 M Book-to-Bill Well Over 2 Predictable Success

Market Environment r e m l a b o l u s n o G C 350 nm 250 nm y 180 nm it x ple m 130 nm Co 90 nm 65 nm 45 nm © 2006 Synopsys, Inc. (6) Predictable Success

From System to Chip to Fab System Studio & Innovator Mask Syn & Data Prep System Studio Saber VCS Nano. Sim/HSIM HSPICE Reference Verification Methodology IC Compiler Discovery VCS Verification Library Design Compiler PHYs Signoff Galaxy Library + Cores Design. Ware Lithography Verif TCAD Manufacturing Yield Management © 2006 Synopsys, Inc. (7) Predictable Success

A G E NDA Synopsys Intro M&A Processes Getting Started; T=0 Environment Integration; T<60 © 2006 Synopsys, Inc. (8) Predictable Success

Mosaid Sigma. C ‘ 07 Virtio ‘ 06 Tri. CN Nassda HPL ‘ 05 ADA ‘ 04 i. Ro. C SA Cascade ISE ‘ 05 Monterey Progressant ‘ 04 Accelerant ‘ 04 Leda ‘ 04 Inc Numerical ‘ 04 Innologic Systems Technologies ‘ 03 Qualis, Inc. ‘ 03 Qualis, NTI in. Silicon ‘ 03 ‘ 00 Cadabra Co. Design ‘ 00 Transcription ‘ 00 Avant! ‘ 02 Xentec C Level Design The Silicon Sand ‘ 01 Group ‘ 00 Leda SA ‘ 00 Stanza ‘ 99 Micro Vir. Sim ‘ 00 Virtual Apteq Smartech ‘ 99 Chips Awar ‘ 99 Covermeter Gambit ‘ 99 d ‘ 99 Systems Science Analogy Everest Design ‘ 98 Xynetix ‘ 99 ‘ 00 Chrysalis ‘ 98 Advanced Test ‘ 99 Technologies ‘ 97 TMA ‘ 97 Inter. HDL Viewlogic ‘ 98 Compass ‘ 97 ACEO Eagle DA EPIC ‘ 97 ‘ 98 ‘ 97 Silerity Data. Link ‘ 97 Nihon Synopsys Anagram Arkos Precim ‘ 96 ‘ 95 Cid Silicon Architects ‘ 96 Meta ‘ 96 ‘ 95 a Sunrise ‘ 94 Arcad ‘ 95 Front. Line Arch IPO “Avant!” ‘ 94 CADIS ‘ 96 er ‘ 95 Next. Syn ‘ 94 Chronologic Logic Modeling Epic ‘ 96 ‘ 94 LMC Compiled Designs Quad Design IPO “ISS” ‘ 94 ‘ 93 IPO “Synopsys” LMSI PSI ‘ 92 Vantage LA Zycad ‘ 90 ‘ 92 I Valid ISS ‘ 85 Arcsys ©OSI 2006 Synopsys, View ‘ 86 Inc. (9) Predictable Success ‘ 91 Logic Synopsys Family Tree

M&A High level • • • Create IIR list § § Inventory of equipments Estimated capital and expenses budget for M&A activity Network & Security § § § T=0 ->Firewall protected Network connectivity to corporate (access via secure intranet using token) New ip address space Standard network deployment with VPN, Packeteer etc Security § § § FW and Security configuration Symantec Antivirus Server Patch update and Personal firewall Core infrastructure § § Create user accounts in Synopsys domain and access to minimal resources using secure token Email relays and aliases (to make old mail infrastructure work in new domain) Update of DNS information. Deploy standard core infrastructure (AD/DHCP), Email and NIS Engineering environment § § § Unix Environment (UID, GID. . ) OS/QSC Depot Storage Compute environment, source code, scripts and common accounts for build and regression Tools and licenses to Global. Aps Remediation and standardization – (Driver –Capital/expenses cost) § § Either during move Or After move Purple – Capital funding dependent. © 2006 Synopsys, Inc. (10) Predictable Success

M&A Processes © 2006 Synopsys, Inc. (11) Predictable Success

M&A Templates © 2006 Synopsys, Inc. (12) Predictable Success

IIR Top Level © 2006 Synopsys, Inc. (13) Predictable Success

IIR Details © 2006 Synopsys, Inc. (14) Predictable Success

Team Responsibility • Review & Provide feedback to IIR data for technical implementation details • Provide recommendations for budgetary capital funds for Hardware & Software • Create implementation plan • Order HW/SW as required • Schedule deployment • Implement and test production deployment © 2006 Synopsys, Inc. (15) Predictable Success

A G E NDA Synopsys History Getting Started; T=0 Environment Integration; T<60 © 2006 Synopsys, Inc. (16) Predictable Success

T=0; Users Identity • All Users get Synopsys Identity on Close § Email Address § UNIX/ Windows User IDs § Phone Access and Voice Mail § Benefits and Welcome Packages § Welcome Message from CEO/President is made available to the new employees § The company’s web presence is either replaced with Synopsys Information or a logo/Synopsys blurb is placed © 2006 Synopsys, Inc. (17) Predictable Success

T=0; Synopsys Access • Usually a site is not integrated into Synopsys landscape immediately but alternate access are made available for § Physical Access to Campus § Email (web based access) § Voice Mail (via a 1 -800 number) § Synopsys Compute Environment § Synopsys Tools and Licenses § Synopsys Sales & Support Databases § Synopsys Intranet & Business Unit Access © 2006 Synopsys, Inc. (18) Predictable Success

T=0; Company Identity • The previous identity is still managed to provide appropriate access § Emails are kept as is until a Synopsys approved device (current or • new) is defined for access § Email, Support Aliases & 1 -888 phone numbers are kept intact until site integration § Source code & General IP access is made available as required. Process varies for § IP only M&A § People only M&A § Smaller Companies & Consulting Companies © 2006 Synopsys, Inc. (19) Predictable Success

T=0; Remediation / Integration • New Users are Provided with § Synopsys Laptops § Synopsys Cell/Mobile Devices § Secur. ID Cards & Extranet Website Information § New User Orientation § Synopsys Business Group Liaisons § Misc Information © 2006 Synopsys, Inc. (20) Predictable Success

T=0; R&D Environment • • • Compute resources are made available via approved remote access models Licenses and Source Code Access are made available on the Synopsys compute environment Backups of new IP are made and included into Synopsys IP Management System Provision additional CPU/Storage resources based on requirements Help remediate R&D process (queuing systems, storage paths, access models, compilers). © 2006 Synopsys, Inc. (21) Predictable Success

• Web Access (Citrix, Web Proxies) allow new users to get access to all Synopsys network resources © 2006 Synopsys, Inc. (22) Predictable Success

T=0; Security & Networks • Dedicated infrastructure for un-remediated sites and partner networks § Nortel VPN Appliance § Nokia Firewall § Cisco router for NAT and route aggregation § Packeteer for traffic shaping/monitoring • • Network team maintains VPN tunnels and routing Security team manages firewall policies © 2006 Synopsys, Inc. (23) Predictable Success

© 2006 Synopsys, Inc. (24) Predictable Success

T=0; Misc • Procure new CPU/ Storage to replace old and zero book value devices • Include all assets (that are not being junked) and move them into Synopsys ERP systems to track © 2006 Synopsys, Inc. (25) Predictable Success

A G E NDA Synopsys Marketing Getting Started; T=0 Environment Integration; T<60 © 2006 Synopsys, Inc. (26) Predictable Success

T<60; Infrastructure • Synopsys IT has pre-packaged service appliances for NIS/AD/DHCP/Print which are installed at new site • Re-IP-ed Hardware is integrated with new infrastructure standards (names and IP space conflicts are resolved as required) • Basic Infrastructure for provisioning is also provided – specifically Linux kickstart, software development tools repository, EDA tools repository and Vigil. Guard® Monitoring and Windows Imaging • Device Configurations are updated (OS upgrades/ patches, Bios Upgrades etc) to meet Synopsys development standards © 2006 Synopsys, Inc. (27) Predictable Success

T<60; Engineering Hardware • • • Software tools are provided as a repository to help change development model Login scripts and Synopsys standard checker scripts are deployed as part of user’s startup profiles Synopsys licensing and EDA software repository are extended to new site via remote development model or as local infrastructure New source code is audited and secured. The source code is archived for legal purpose and integrated into Synopsys Perforce Servers. Users will then require to follow access request process for any source code Users are trained on internal software development and release models © 2006 Synopsys, Inc. (28) Predictable Success

Post Integration – Integrated Solution © 2006 Synopsys, Inc. (29) Predictable Success

T<60; Engineering Process Management • Job scheduling (SGE/LSF) is implemented at the local site or the local users are trained to access the common SGE/LSF farm at corporate • SGE/LSF clusters are configured to help support specific & transitional special software requirements • Release/Integration and QA process are integrated with standard compute/support processes • Source Code and Bug databases are updated for new product issues • IT/SW groups set up training session for new engineers © 2006 Synopsys, Inc. (30) Predictable Success

Asset Management © 2006 Synopsys, Inc. (31) Predictable Success

Key Takeaways • Early Involvement • Attention to Details on IIR • Communication & Maintenance Costs allocation • Bandwidth needs & contracts integration • Engineering Requirements finalization • Securing Budget • Handle pushback & resistance to change © 2006 Synopsys, Inc. (32) Predictable Success

© 2006 Synopsys, Inc. (33) Predictable Success

Predictable Success © 2006 Synopsys, Inc. (34) Predictable Success