PTC Update and Strategy Michael M Campbell SVP

PTC Update and Strategy Michael M. Campbell SVP Product Management, Desktop Products PTC/USER Benelux Event – April 22, 2009

Agenda Introduction PTC Numbers Customer Challenges PTC Product Development System How PTC Approaches the Product Development Market PTC Product Strategy Update Q&A 2 Forward looking information subject to change without notice. © 2009 PTC

A Leading Provider of Product Development Solutions Employees (as of 9/30/08) ~5, 000 Customers ~50, 000 FY’ 08 revenue $1, 075 M FY’ 08 non-GAAP operating margin* Cash and equivalents (as of 9/30/08) 22% $253 M *Non-GAAP operating margin excludes certain GAAP expenses, including acquisitionrelated expenses, stock-based compensation and restructuring charges; EBITDA is earnings (excluding stock-based compensation and restructuring charges) before income taxes, depreciation and amortization 3 Forward looking information subject to change without notice. © 2009 PTC

Customers Face an Increasingly Complex Challenge Complex Products … defined by … Complex Information …created across a Global Development Team Mechanical Electrical Documentation Engineering Calculations Software 4 Forward looking information subject to change without notice. © 2009 PTC

Today’s product development environment Product development challenges are numerous… Time-to-market Quality improvement Cost reduction System heterogeneity Global design collaboration Downstream data control IP protection Configuration management Regulatory compliance © 2007 Forward looking information subject to change without notice. 5

The PTC Product Development System (PDS) Enterprise Interoperability Business Intelligence Dynamic Publishing MCAD/CAE/CAM Engineering Calculations Digital Mockup Technical Illustrations Configurable Configuration Products Management Planning Software Data Management 7 Manufacturing Process Mgmnt XML Authoring Enterprise Content & Process MCAD Data Management Forward looking information subject to change without notice. Regulatory Compliance Distributed Visualization Collaboration & Mockup Requirements Management Study Management ECAD Data Management Supplier & Component Management © 2009 PTC

The PLM Market – Segment Opportunities MCAD Large Enterprise Customers Small & Medium Business (SMB) Customers © 2006 Data Mgmt / Collaboration Mature Market Growth Market 0% + / yr growth opportunity 15% + / yr growth opportunity PTC FY’ 08 revenue $430 M PTC FY’ 08 revenue $370 M Growth Market Emerging Growth Market 15% + / yr growth opportunity 40% + / yr growth opportunity PTC FY’ 08 revenue $235 M PTC FY’ 08 Revenue $40 M Forward looking information subject to change without notice. 8

PTC's Market Segment Strategies Desktop Enterprise Product Development Process Optimization Simple, Powerful, & Connected Via Large Application Suites Broad & Integral Enterprise Product Development System Small & Medium Business 9 Simple Ease of Use, Scalable Pricing, & No Glass Ceiling Forward looking information subject to change without notice. Simple, Low TCO Solutions With Focus on Collaboration & Social Computing © 2009 PTC

Mapping of PTC's Primary Product Families Enterprise 10 Forward looking information subject to change without notice. NEW! In. Sight Product. View Arbortext Mathcad Pro/ENGINEER Small & Medium Business (SMB) Co. Create Large Enterprise CADDS Desktop Windchill NEW! Windchill Product. Point © 2009 PTC

What’s New? ? ? Enterprise Desktop St ar t Large Enterprise 3. Pro/ENGINEER Wildfire 4. 0 Update 4. Acquisition of Synapsis 5. Product. View 9. 1 Release 6. Windchill 9. 1 Release Small & Medium Business 11 2. Pro/ENGINEER Embraces Social Product Development Forward looking information subject to change without notice. 1. Dawn of Social Product Development: Windchill Product. Point 1. 0 Launch On Share. Point © 2009 PTC

Product Development: Change is Brewing Globalization Drives Need to be “ON” 24/7 IT Proliferation © 2008 Aging Workforce Necessitates Knowledge Capture Incoming workforce is equipped with “new” networking skills Forward looking information subject to change without notice. 12

Web 1. 0 Web 2. 0 The Changing Web Academic Business YESTERDAY TODAY ©

© 2008 Email Portals HTML Calendaring Search Forward looking information subject to change without notice. Web 2. 0 Web 1. 0 The Changing Web Presence detection Status Communities Texting Forums Blogs Wikis RSS feeds IM File/photo sharing On-line gaming Geo-tagging Friending/Association Video chat Podcasts Faceted/predictive search Polling Peer-rating 14

Web 2. 0 is Pervasive 75% Of US Online Adults Now Use Social Technologies Up from 56% in 2007 October 2008 “The Growth Of Social Technology Adoption” Forward looking information subject to change without notice.

Enterprise 2. 0 is Underway Business Adoption Of Web 2. 0 Tools Is Expected To Grow Strongly April 2008 “Global Enterprise Web 2. 0 Market Forecast: 2007 To 2013” Forward looking information subject to change without notice. Explosive Growth of Collaboration Technology (e. g. Share. Point)

Social product development… A technology initiative which incorporates industry-ready social computing capabilities… …into a complete technology solution which understands the complexities of product data …and which improves the work practices of product development organizations Social computing Product development Social product development …for increased workforce productivity. Forward looking information subject to change without notice. 17

© 2008 Email Portals HTML Calendaring Search Forward looking information subject to change without notice. Web 2. 0 Web 1. 0 A new set of capabilities relevant to product development Presence detection Status Communities Texting Forums Blogs Wikis RSS feeds IM File/photo sharing On-line gaming Geo-tagging Friending/Association Video chat Podcasts Faceted/predictive search Polling Peer-rating 18

Examples of social product development… 1. Program manager creates a blog to document the progress of the program. Program members subscribe to the blog for automatic delivery. 2. Retiring engineers document historical work practices, using a wiki for collaborative online documentation 3. Product marketer uses an online forum to host an ongoing online focus group about a recently released product 4. Engineers & designers join an online community by creating profiles that detail special skills and interests © 2008 Forward looking information subject to change without notice. Product development Social computing 19

1. ) December, 2008 - Windchill Product. Point Launch Windchill Product. Point: The Social Product Development Platform First PLM software built natively on Share. Point. . . Enabling Social Product Development Manages complex structured information prevalent in product development – Pro/ENGINEER Wildfire 4. 0 M 060 and later – Mathcad 14 M 035 and later – 3 rd Party Engineering Tools Enables sharing, visualizing, and markup of engineering data Appropriate for organization of all sizes For small workgroups … to vault and share structured information For existing Windchill customers of any size … to expand product information access & reach of Share. Point for social product development 22 Forward looking information subject to change without notice. © 2009 PTC

2. ) Summer 2009 – Pro/ENGINEER Wildfire 5. 0: Embracing Social Product Development More pervasive feedback about Model’s PDM Status Pop-up with detailed PDM status In model tree, File Open, Toaster pop-ups Presence Detection Throughout Push-button, Sharepoint-based Design Collaboration Tool Including Wiki’s, Discussion Forums, Chat, etc. PDM location/info Discussion forum 23 Forward looking information subject to change without notice. Presence detection in enhanced PDM status notification Productviewable; Markups Presence detection in toaster pop-up © 2009 PTC

3. ) January 2008 – Pro/ENGINEER Wildfire 4. 0 Steady, increasing adoption, by SMB (Jacob’s Vehicle, Santa Cruz) and large customers (CISCO, VW, ABB) alike Functionality-packed, compelling release Large Assembly Performance Improvements Auto Round. TM, 3 D PDF, 3 D Drawings & Direct Surface Editing Surface Removal & New Imported Data Cleanup Improvements to Rendering, CMM, Simulation, Manufacturing, & more Exciting, broadly applicable new modules ECAD-MCAD Collaboration IP Protection with Rights Management Interface for JT Tolerance Analysis Accommodating “Data Management Compatibility” Roadmaps Recent Pro/ENGINEER Wildfire 4. 0 News Additional Manikin and Manikin Analysis modules now available! New, free additions to the entry-level Pro/ENGINEER packages include CAM “Lite” , CAE “Lite” and Manikin “Lite” – Make Pro/ENGINEER a more compelling offering in the SMB space. – Expose Breadth of Pro/ENGINEER Highest Quality Release in years!!! 24 Forward looking information subject to change without notice. © 2009 PTC

Introducing Integrated Digital Human Modeling with Pro/ENGINEER Wildfire 4. 0 New Pro/ENGINEER modules Standards-based, anthropometricallycorrect Pro/E integrated digital human modeling solution Affordable & Easy to use; Developed specifically for the needs of the Pro/ENGINEER user Capabilities Longer Term Product plans Integration with Product. View and MPMLink – Heterogeneous CAD Human Factors analysis – Factory Floor Simulation – Human-Centric Interactive Technical Manuals – Assembly and Maintainability Simulation Manikin “Lite” : Single-population representative manikin posturing with every seat of Pro/ENGINEER (save restricted) Manikin : Multi-population-representative manikin posturing and basic analysis (reach & vision) Manikin Analysis : Advanced dynamic analysis, including lifting, pushing, pulling, etc. Additional population profiles and libraries of accessories and postures 25 Forward looking information subject to change without notice. © 2009 PTC

26 Forward looking information subject to change without notice. © 2008 PTC

New “Lite” capabilities recently added to the Pro/ENGINEER Foundation XE All in the Pro/ENGINEER Foundation XE package CAE Lite (as of Pro/ENGINEER Wildfire 4. 0 M 070 – Feb. 2009) Guiding interface walks users through analysis setup on simpler models – Static Structural Analysis for Parts and Assemblies – Apply Loads and Constraints (Displacement, Pin, Ball, Planar) – Full results functionality • F Probing, Animation, etc… Mechanica Solution Technology Complete upward model compatibility to full Mechanica! CAM Lite (as of Pro/ENGINEER Wildfire 4. 0 M 070 – Feb. 2009) Will provide basic 2 ½-axis milling capability, allowing machining of prismatic parts in 5 -axis positioning Easy to use, intuitive UI Limitation is a hardcoded, generic (Fanuc) GPOST, so that the user can see example G-Code output; only CL file output Specific GPOST can be purchased from Austin. NC or other vendors. Manikin Lite (as of Pro/ENGINEER Wildfire 4. 0 M 060 – Dec. 2008) Any Pro/E user may load, place, edit placement and manipulate a manikin in the scene, with the following limitations: – Limited tools for manipulation (2 D drag and apply posture only) – No ergonomics analysis; no reach envelope; no vision cones and no vision window – No ability to Save designs that include a Manikin 27 Forward looking information subject to change without notice. © 2009 PTC

4. ) November, 2008 – Synapsis Technology Acquisition Synapsis Technology, Inc. – Company Overview Leading Product Environmental Compliance Solution Vendor Headquarters in Spring House, PA Founded in 1999 Customers Include: Beckman Coulter Cisco Delphi GE IBM Intel Microsoft Motorola Sony Ericsson Teradyne Visteon Customer testimonials: "We selected In. Sight because it provides a comprehensive framework for managing compliance that supports our eco-friendly product design objectives" Jeffrey Larason Engineering Director at APC. Vertical Mix: 45% electronics & high tech 22% automotive 21% industrial 12% healthcare 28 Forward looking information subject to change without notice. EMARS is now © 2009 PTC

Increasing Complexity of Environmental Regulations 29 Forward looking information subject to change without notice.

In. Sight BOM Analytics For Environmental Compliance Standard § Substances § Thresholds § Exemptions Supplier Part § § Substances Masses Company Part A single product may need to comply with multiple environmental standards. Company Part Supplier Part § § Substances Masses Supplier Part A product consists of multiple company parts (3 shown) each sourced from one or more suppliers. 30 Forward looking information subject to change without notice. § § Substances Masses Supplier Part § § Substances Masses Each supplier part may have a different chemical makeup, which will impact compliance © 2009 PTC

In. Sight – Standalone Solution Or Backend “Compliance Engine” Suppliers Buy Supplier 1 Supplier communication In. Sight • Environmental Data • Compliance Standards* • Exemptions Supplier 2 Supplier n Analysis and reports Program analysis / Supplier tracking Product analysis / Risk assessment • IPC-1752 • IMDS • Other stds. Make Item 1 Item 2 Product Info (BOMs) Item m Part Info/AVL Product Info (Item Master) (BOMs) Material Content Declaration of final product *Supported compliance standards include EU Ro. HS, China Ro. HS, WEEE, ELV, REACH and more 31 Forward looking information subject to change without notice. © 2009 PTC

5. ) September, 2008 – Product. View 9. 1 Release Product. View 9. 1 Key Features Smart search World’s highest performance architecture Pro. STEP. idx standard 64 -bit option New user experience Hierarchical visual navigation 3 D Drawings 32 Forward looking information subject to change without notice. Smart exploded views © 2009 PTC

6. ) November, 2008 - Windchill 9. 1 Release Windchill 9. 1 Continued Focus on Process Improvements Detailed Design – Improvements in Pro/ENGINEER CAD data management – New integrations: Mathcad, Co. Create, CADDS 5 i, IDEAS Design Outsourcing – Added support for packages Manufacturing Process Management – Improved integration with ERP Usability Table improvements – Multi-column sort – Column width and freeze controls – Export from table Visualization improvements – Visual navigation with mini-thumbnails – Interact with thumbnail viewables Expanded usability testing – 4, 300+ hours with 200+ customers – BOM reconciliation reports – Gantt view of process plan Technical Publications – Integration with Arbortext Iso. Draw Variant Design and Generation – ATO option support with improved tools to create, display, filter, and manage Product Structure 33 Forward looking information subject to change without notice. © 2009 PTC

End of this year – Mathcad Project “Spirit” Mathcad Overhaul Task-based, document-centric UI Commonly used tasks logically grouped into tabs Direct manipulation of worksheet objects Improved documentation focus increases efficiency Revised and Enhanced Equation Editor Improved scoping, including operator indicator (in blue), and operand indicator (in gray) Flexible scoping via keyboard, mouse, or ribbon More Intuitive Matrix Operations and Navigation Including new row operator & direct matrix alteration Support for Design of Experiments (Do. E) Enhanced statistical analyses to better predict interaction effects New plot types to support graphical viewing of results 34 Forward looking information subject to change without notice. © 2009 PTC

September 2009 Co. Create 16. 50 Functionality Highlights Co. Create Drafting WGM Phase 1 (with Windchill 9. 1 M 030) – Addresses some usage scenarios (FESTO) and may help with FAP + 2 D Bundle Co. Create Modeling Interoperability with Desktop Applications – Pro/ENGINEER • Export of Granite. g • Export of Granite. neu from Co. Create Modeling (special for ATB) – Product. View • Direct Export of. pvz from Co. Create Modeling (which also can be used in Iso. Draw) – Mechanica • Direct “push” from with Co. Create Modeling (including associativity); Perform Analysis and Update to changes – Pro/TOOLMAKER • push via *. g; Create MFG Deliverables and Update to changes 35 Forward looking information subject to change without notice. © 2009 PTC

April 2010 Co. Create 17. 0 Functionality Highlights Co. Create Drafting WGM Phase 2 (possibly with Windchill 9. 1 M 050; date TBC) Co. Create Model Manager – One of two Stock-Finish Part Scenarios Co. Create Modeling Interoperability with Desktop Applications – Pro/ENGINEER • Import of Pro/E files into Co. Create Modeling directly via Granite. g • Considering Import of Co. Create files into Pro/E directly via Granite. neu (with ATB) Co. Create Modeling Improvements to Explicit Modeling – Improved Realism, Improved Selection, Slightly expanded parametric modifications – Improved Geometry (Blending, Intersection, Topology Changes) Co. Create Modeling Application Improvements – Bug Fixes in Annotation /Drafting & Part Library; Some Usability improvements in Sheetmetal and Annotation; Minor enhancement to allow cable update following moved connector in Cabling 36 Forward looking information subject to change without notice. © 2009 PTC

Summary: PTC’s Product Outlook Is Stronger Than Ever! Enterprise Desktop St ar t Large Enterprise 3. Pro/ENGINEER Wildfire 4. 0 Update 4. Acquisition of Synapsis 5. Product. View 9. 1 Release 6. Windchill 9. 1 Release Small & Medium Business 37 2. Pro/ENGINEER Embraces Social Product Development Forward looking information subject to change without notice. 1. Dawn of Social Product Development: Windchill Product. Point 1. 0 Launch On Share. Point © 2009 PTC