Aspen Technology : Q4 2023 Earnings Presentation

Q4-FY23 Results

Antonio Pietri, President and Chief Executive Officer Chantelle Breithaupt, Chief Financial Officer

August 1, 2023

Forward-Looking Statements

Safe Harbor Statement

Statements in this presentation and our commentary and responses to questions that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, and AspenTech undertakes no obligation to update any such statements to reflect later developments. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "strategy," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "opportunity" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These risks and uncertainties include, without limitation: the failure to realize the anticipated benefits of our transaction with Emerson Electric Co.; risks resulting from our status as a controlled company; the scope, duration and ultimate impacts of the COVID-19 pandemic and the Russia-Ukraine conflict; as well as economic and currency conditions, market demand (including related to the pandemic and adverse changes in the process or other capital-intensive industries such as materially reduced spending budgets due to oil and gas price declines and volatility), pricing, protection of intellectual property, cybersecurity, natural disasters, tariffs, sanctions, competitive and technological factors, and inflation; and others, as set forth in AspenTech's most recent Annual Report on Form 10-KT and subsequent reports filed with the Securities and Exchange Commission. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Use of Non-GAAP Financial Measures

In this presentation we will discuss some non-GAAP measures used by our management in talking about our company's performance, and the reconciliation of those measures to the most comparable GAAP measures is contained within this presentation or available at our website, https://ir.aspentech.com. This non- GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.

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FY23 Achievements Set Growth Foundation

	Significant
Strong 4Q23	Progress	On Track to	Focused on New
Results for	in Integration &	Achieve Emerson	Sustainability
Successful FY23	Transformation	Growth Synergies	Growth Pathways
	Work

In FY23, we built the foundation for our next growth stage as an industrial software powerhouse. We believe these results position us well for future ACV growth and FCF margin expansion over time

*Please see glossary for definition of ACV and GACV.

© 2023 Aspen Technology, Inc. All rights reserved.

FY23 RESULTS

$885m

Annual Contract Value (ACV)*

$94m

Growth in ACV (GACV)*

11.8%

ACV YoY Growth

$292m

Free Cash Flow

3

FY23 ACV Suite Performance

Points of Growth by Suite in FY23*

Engineering (ENG)

FY23 ACV Points of Growth:	ENG
7.2 pts
FY23 ACV Guided Points	MSC
of Growth:
7-8 pts	APM
FY23 ACV Points of Growth:
4.6 pts	SSE
FY23 ACV Guided Points	DGM
of Growth:
~4 pts
Net ACV Growth

3.9

2.6

0.7

1.9 pts3.0

1.7

3.9 pts

11.8

• Improving environment for EPC customers and strong Energy market
• Growth contribution from new customers around sustainability-related projects

Manufacturing & Supply Chain (MSC)2.9 pts

• Driven by refining market strength
• Chemicals remained a headwind, particularly in bulk chemicals market 1.6 pts

Asset Performance Management (APM)

• Remain confident in APM growth potential; investing to capitalize

0.7 pts

• Closed tuck-in IP acquisition for FMEA and RCA capabilities in the APM Mtell

Subsurface Science & Engineering (SSE)

• Outperformance driven by initial transformation synergies
• Strength in upstream market drove better-than-expected customer demand

Digital Grid Management (DGM)

• Strong demand environment, with focus on global electrification and grid upgrades
• Investing in international sales capabilities leveraging our global footprint

*Points of growth are rounded illustrative purposes. Please refer to the Additional Information section for a table of fiscal year ACV values by suite from fiscal year 2021 to fiscal year 2023.

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Significant Progress in Integration and Transformation Work

Strategic Emerson partnership and cross-functional collaboration driving transformation initiatives

On track to achieve $110 million in EBITDA synergies

Sales Synergies

Cost Synergies

OSI Transformation

SSE Transformation

• Won joint bids for two world-scale polymer complexes
• Continue to develop and prove out go-to-market approach for white spaces
• Vendor consolidation
• Unified corporate policies
• Leverage our global footprint to best manage labor costs
• Achieved separability between professional services and software licenses
• Build out of 3rd party ISP network
• Ahead of plan in converting to a term software contract model
• Tokenized SSE suite to provide customers with more flexibility and easier access to ongoing innovation
• Aligned contract structure with overall business

• Completed acquisition of inmation

Scaling Through M&A ▪ With inmation, launched our new Enterprise Data Management platform,

DataWorks

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