Alain LabatPresident, Chairman & CEO

Alain LabatPresident, Chairman & CEO

2

The End Game for Emerging Companies is Creating Customer Value!

The End Game for Emerging Companies is Creating Customer Value!

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Blueprint for Successful Private M&A Blueprint for Successful Private M&A

Do your diligence in courtship process

Do your diligence in courtship process

Learn from failed acquisitions Learn from failed acquisitions

Leverage core competency Leverage core competency

Develop strategy with customer and market in mind

Develop strategy with customer and market in mind

Merge into a melting pot, NOT a mosaic

Merge into a melting pot, NOT a mosaic

Validate business and product synergy

Validate business and product synergy

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Winning and Losing Criteria for M&AWinning and Losing Criteria for M&A

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M&A for Market OpportunityM&A for Market Opportunity

1 + 1 + 1 = $1B1 + 1 + 1 = $1B

2004

Architectural & Logical Design Closure $ 218 M

Physical Design Closure $ 802MYear -to-Year Growth 30%

TOTAL DESIGN CLOSURE $ 1,020 M Year-to- Year Growth 30% - As % of Total EDA 18%

TOTAL EDA $ 5,705 M

$ 1,020M

Market Analysis (Ref: Dataquest/ Sequence- Nov 2000)

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THE Synergy FactorTHE Synergy Factor

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End GameEnd Game

1. Create Customer Value!1. Create Customer Value!

...And Currency Will Follow!...And Currency Will Follow!

Target High-Growth SegmentsTarget High-Growth Segments

Build Strong Business FundamentalsBuild Strong Business Fundamentals