1 Welcome to Focus on PTC Today’s Session: PLM Segment

2 PLM (Product Lifecycle Management) Segment © 2006 PTC Focus on PTC

Product Lifecycle Management (PLM) Brian Shepherd EVP, PLM and SCM June 2012

4 Product Lifecycle Management: Its Role © 2012 PTC To help companies develop the right products With efficient strategies and collective knowledge According to product performance targets

5 Product Lifecycle Management: Its Value © 2012 PTC Increase revenue with innovative and tailored products Increase profit with efficient use of resources and effective cost controls

6 Customer Story: Piaggio

7 Optimized Teams Competitive Performance Right Products Efficient Strategies Global Offerings Global Platforms Global Development Global Quality Product Lifecycle Management Delivering Product and Service Advantage Increasing demand for diversity  Over 50% of companies are increasing products and variants in the next year Need for optimized resources  76% of companies have too many projects given available resources Globalization  Labor cost (71%), proximity to customer (64%), and skill of workforce (61%) are the top reasons cited for globalization Cost of poor quality  Typical COPQ is 5-20% of revenue Sources: 1 Lippincott/PTC 2011 survey of global manufacturers 2 Quality Digest 3 (Cooper, Dr. Robert G. and Edgett, Dr. Scott J., Product Development Institute) 4 Accenture: Manufacturing’s Secret Shift (2011) 5 How Quality Drives the Rise and Fall of High-Tech Products 6 Gartner: Manufacturing 2.0 Product & Service Advantage

8 Global Offerings Improving product and service offerings ̶ Provide insight into the performance of your current portfolio ̶ Guide investment towards the most promising products and programs ̶ Capture the voice of the customer to establish requirements for success ̶ Enable program management to monitor progress and ongoing performance Product Offerings with Potential Identifying the right products and services to create a competitive portfolio demands insight into requirements, performance, and profitability Manage Development Resources Balance Product Portfolios Integrate Planning across the Enterprise

9 Global Platforms  Achieve product diversity with scale by: ̶ Architecting product platforms as a collection of reusable modules ̶ Validating product platforms and configurations ̶ Propagating configuration information to create manufacturing and service plans ADOPTIONVALUE OBJECTIVE APPROACH Product Diversity with Scale Efficiently handle the complexity that comes with meeting the varied requirements of market, region, and customer- specific products Manage the Building Blocks Define the Platform Share the Platform HARDWARE & SOFTWARE ENGINEERING SUPPLY CHAIN & MANUFACTURING SALES & SERVICE ENTERPRISE Increase market share via faster NPI 25% decrease in product development time 1 30% – 40% cost savings through higher product commonalities 1 Increase service profit via higher first-time fix rates 1 Schuh & Co, others from PTC customer experience

10 Global Development Enable high performance with secure teaming ̶ Provide a single source of truth for all product-related information ̶ Enable fast and secure collaboration for global sites and value chain partners ̶ Standardize best practices ̶ Share the collective knowledge and experience of the enterprise Product Development with Knowledge Globalization is not just about reducing costs: it’s now about driving business growth in new, expanded markets Share Product Information Communicate and Collaborate Collaborate across the Enterprise

11 Global Quality A comprehensive quality management approach ̶ Establish an authoritative, accessible source of quality data for the enterprise ̶ Enable each organization to establish interrelated quality, risk, and validation plans ̶ Track and audit issue resolution ̶ Close the loop so that lessons learned are reused in subsequent activities Product Quality with Confidence Effectively managing quality requires coordination across all of the enterprise functions that impact product performance, safety, reliability, and risk Standardize Quality Processes Integrate Quality throughout the Lifecycle Manage Quality across the Enterprise

13 Windchill This presentation contains forward looking information subject to change without notice Single Source of Truth

14 Success with Windchill 9.x (September 2007 – March 2011) MCAD Data Management Software Data Management ECAD Data Management Supplier & Component Management Requirements Management Planning Enterprise Interoperability Visualization Distributed Collaboration Enterprise Content & Process Management Configuration Management Manufacturing Process Mgmnt Customers Selected Windchill for: – Full “ footprint ” of capabilities for core product development process improvement – Proven architecture that is open, high performance, and secure – “ Ready now ” to deliver real customer value

15 Windchill 10.0 PTC’s New Platform for Global PLM Building on Windchill’s proven strengths: 1.Capability Footprint 2.Architecture 3.Customer Success add significant customer value in: 4.User Experience 5. Serviceability GET MORE value from PLM 10.0 The largest Windchill release in PTC’s history

16 “In order to support our ambitious growth plans, we have prioritized the need for a faster and more efficient environment to facilitate global concurrent product development and support the rapidly changing requirements for our vehicle programs” -Dr. H. S. Lee, Vice Chairman HKMC R&D center Hyundai Kia Motor Corporation Deploys PTC’s PLM Solutions The complete system of record for digitally tracking the creation and modification of their platforms and vehicles from concept to production Hyundai Motor Company and Kia Motors Corporation Completes First Phase of PTC PLM System Deployment Strong Partnership Enables Companies to Achieve Aggressive Milestone on Schedule “Our company believes that new thinking leads to new possibilities. This philosophy is what led us to select PTC as our strategic PLM partner.” -ChangKy Kang, EVP, head of vehicle development center 4

17 Brian Shepherd EVP, PLM & SCM Segments Bill Neuman PLM Solutions Leland McLaughlin PLM NA GTM Michael Rygol PLM EMEA GTM Greg Marin PLM Services GTM Tom Shoemaker PLM Marketing Ken Stillwell PLM & SCM Finance/Ops PLM Leadership

18 Q&A © 2006 PTC Focus on PTC