PTC Update and Pro/ENGINEER Roadmap Michael M. Campbell Vice President of Product Management, MCAD November 2006 © Copyright 2004 Parametric Technology Corporation

Great Products… … define markets … drive revenue growth … generate profitability … create competitive advantage … build bonds with customers … increase shareholder value … energize employees We’ve been on the front lines of product development and product lifecycle management for nearly 20 years. And it’s exciting to see business leaders refocusing their companies on what matters most, THE PRODUCT. I’m going to share with you our point of view about PLM and why a focus on products is important. At the highest level, product development is important because it feeds the other operations of a company, from Supply Chain issues, to Operations, and customer satisfaction. © 2006 PTC © Copyright 2004 Parametric Technology Corporation

Product Development is Difficult 90% of product launches capture 1% market share (Boston Consulting Group) cancelled fail Out of every 100 development projects: 63 are cancelled, 25 are commercially successful, and 12 fail (Booz Allen) Up to 1/3 of Product Development time spent on unnecessary work or waiting for decisions/information (McKinsey) There are huge benefits of putting a focus on product development and your products. But there are some challenges. Not every company gets product development right. Here are 3 examples from our research of what experts are saying about the risks of product development. This point is from a consumer products study that BCG conducted. This point is highlights how many projects are initially funded but how few actually provide the financial benefits that were intended. This point highlights the problems associated with inefficient availability of information or poor decision processes This point comes from Robert Cooper who has written extensively about product development. Out of all the resources put into product development. 46% are wasted. 46% of product development resources are spent on products that fail (Cooper, Product Development Institute) fail © 2006 PTC © Copyright 2004 Parametric Technology Corporation

Today’s Typical IT Infrastructure is a Barrier to Improvement Distributed Mfg Supplier Distributed Mfg Supplier Preferred Parts Approved Vendors Feasibility Feedback Tooling Designs Work Instructions NC Programs Supplier Distributed Mfg FTP Requirements Design Feedback Procurement Manufacturing Custom Configurations Part Designs BoMs Changes Engineering Service SneakerNet Field Notices Customer Concerns Failure Reports User, Service Manuals Models Drawings Simulations Marketing Sales This is what product development looks like today. The lines represent varying degrees of communication and different types of communication. There is product information all over the enterprise and outside of the enterprise. It is very difficult to implement new strategies and initiatives in this environment. Design Partner Courier Email Customers Design Partner Customers Concepts Requirements Proposals Customer Requirements Customers Design Partner Market Requirements Brochures, Data Sheets © 2006 PTC © Copyright 2004 Parametric Technology Corporation

Offshore Design Partner OUR VISION: The Optimum Product Development System For Distributed Teams Supplier Supplier Distributed Mfg Supplier Feasibility Feedback Tooling Designs Work Instructions NC Programs Distributed Mfg Preferred Parts Approved Vendors Distributed Mfg Requirements Design Feedback Custom Configurations Procurement Manufacturing Field Notices Part Designs BoMs Changes Service Customer Concerns Failure Reports User, Service Manuals Training guides Parts catalogs Engineering Models Drawings Simulations This is our vision for how a product development system should be. A single integrated system with all digital product information managed and controlled. Sales Captive ODC Local Design Partner Offshore Design Partner Marketing Customers Concepts Requirements Customers Proposals Customer Requirements Regulatory Authorities Market Requirements Brochures, Data Sheets © 2006 PTC © Copyright 2004 Parametric Technology Corporation

How to Get from Here to There… PTC Value Roadmap Industrial Equipment Retail, Footwear, Apparel © 2006 PTC © Copyright 2004 Parametric Technology Corporation

How to Get from Here to There… PTC Value Roadmap © 2006 PTC © Copyright 2004 Parametric Technology Corporation

PTC’s Product Development System Pro/ENGINEER Mathcad ProductView Arbortext Windchill © 2006 PTC © Copyright 2004 Parametric Technology Corporation

Only PTC… Footprint Adoption Architecture Process Optimization Create Collaborate Control Configure Communicate Adoption Implementation Process & Technology Adoption Education Architecture Integral Internet Interoperable Given that you have been learning much about the PDS recently, you might be wondering what Windchill’s contribution is to the PDS. Windchill contributes to the PDS for each of the red items. [One caveat is the area of ‘process optimization’ – only with Pro/ENGINEER can PTC validate and test continuous processes. For other CAD systems, it cannot be end-to-end by definition] What should you look for when you select a product development system: The right kind of capabilities. I will spend some time talking about each one of these points in the following charts. The basic capabilities that are needed in product development are create, collaborate, and control. You would want to make sure that your “system” has all of these capabilities. Having the right architecture is important because it directly impacts the total cost of the system over time. The system should be integral (designed as 1 system), Internet based (so everyone in the extended enterprise can have access), and interoperable with other enterprise systems. The system should support end to end product development processes. In addition to these points, there is one other thing to think about. That is how will the system evolve over time. PTC provides a PDS Roadmap that helps companies plan for the future and when/how to upgrade the “system”. Process Optimization Process Expertise Best Practices Validated © 2006 PTC © Copyright 2004 Parametric Technology Corporation

Looking Back – The Last 8 Months © Copyright 2004 Parametric Technology Corporation

Pro/ENGINEER is the only truly scalable solution in the industry… Pro/ENGINEER is the Market Leader For Small Companies For Large Companies 24,246 customers with only ONE or TWO seats Win More Business Top 20 customers average 2,800 active seats Reduce Costs & Time Copy Proportional Command Summary An enhancement to the Copy command inside Style allows copied curves to be scaled proportionally. Benefits and Description (200words) The Copy Proportional command operates on free and planar Style curves in the current feature. During the operation, you have dynamic, visual feedback with respect to the size and shape of the geometry. User Interface Location Select a curve, select Edit / Copy Proportional, and arrows connect the start and end points of the original and copied curves. Drag the arrowheads to achieve the desired shape. Offset COS Command Curve On Surface (COS) curve offsets are now supported inside the Style functional area. COS curves can be offset either on the surface or on the normal to surface, making this a powerful function. Offset curves are history-based and update whenever the original COS is modified and can be redefined to alter their direction or dimension. You can set offset dimensions via the dashboard for use in other areas of Pro/ENGINEER. Select the curve to offset, select Styling / Offset COS and set the options in the dashboard. Radial-Path Planar Curves An option to build radial-path, planar curves has been added to the Planar Curve tool. Within Style, you can construct a planar curve on a plane that remains normal to the tangent vector of a previously created curve at a specific location to build a radial path. The new plane and curve maintain their history, so that when you modify the path curve the geometry updates. You can also drag the plane along the path curve. Select the curve creation tool, toggle the curve type to planar, select the Refs tab from the dashboard, select reference and pick a point on the path curve. A plane will be constructed and its grid displayed. Click points on the plane to create the planar curve. When editing the curve, you can drag the plane along the path curve by holding down ALT, as you would to offset any planar curve reference plane dynamically. Planar on Endpoints Command With the Planar on Endpoints command, you can make 3D curves temporarily planar without constraining them to a particular reference. The curve becomes planar between its endpoints normal to the active datum plane. This functionality is only valid for free curves. Free tangents at the endpoints are adjusted if necessary. If any point or tangent constraints exist, the command does not affect the curve. Select a curve, select the Edit tool, right-click the curve, and choose Planar on Endpoints from the shortcut menu. Scalability Leads To … Revitalized Pro/ENGINEER Revenue Growth Source: 2004 and 2005 Wohler’s Associates © 2006 PTC © Copyright 2004 Parametric Technology Corporation

Pro/ENGINEER Wildfire 3.0 ~ Work Faster! Personal Productivity Easier to use Modern, Consistent Instantly Familiar Expanded Capabilities Faster Response Optimized Algorithms Assembly Performance Fast Assembly Fast Sheetmetal Fast CAM Fast Sketcher Fast Drawings © 2006 PTC © Copyright 2004 Parametric Technology Corporation