Aspen Technology : Q3 2024 Earnings Presentation

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 for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties, and AspenTech undertakes no obligation to update any such statements to reflect later developments. These forward-looking statements include, but are not limited to, our guidance for fiscal 2024, our expectations regarding cash collections, closing of customer renewals and completion of our share repurchase authorization. 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 Russia-Ukraine war and the Israeli-Hamas conflict; as well as economic and currency conditions, market demand (including related to 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-K and subsequent reports filed with the Securities and Exchange Commission. The outlook contained herein represents AspenTech's expectation for its consolidated results, other than as noted herein.

Use of Non-GAAP Financial Measures

This presentation contains "non-GAAP financial measures" under the rules of the SEC. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. 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. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this presentation.

Management considers both GAAP and non-GAAP financial results in managing AspenTech's business. As the result of adoption of new licensing models, management believes that a number of AspenTech's performance indicators based on GAAP, including revenue, gross profit, operating income and net income, should be viewed in conjunction with certain non-GAAP and other business measures in assessing AspenTech's performance, growth and financial condition. Accordingly, management utilizes a number of non-GAAP and other business metrics, including the non-GAAP metrics set forth in this presentation, to track AspenTech's business performance.

Q3 ACV Results Below

Expectations

• Customers slower to deploy budgets at beginning of CY 24
• Dynamic prevalent across most regions and end markets
• Sales execution a factor in some deals

Lowering FY24

Guidance

• ACV growth now >9.0% for FY24
• ~1.0 pt. from SSE, ~2.5 pts. from DGM, >5.5 pts. from HAT suites
• FCF now >$340m for FY24
• Accounts for dynamics we saw in Q3

End Markets

Resilient

• Pipeline growth healthy despite Q3 headwinds
• Aligned with megatrends of global decarbonization, electrification, and transition to new energy system
• Successful OPTIMIZE 24 user conference last week

$936m

Annual Contract Value (ACV)

9.5%

ACV Growth YoY

$22m

Growth in ACV (GACV) QoQ

Proactively engaging with customers and to strengthen performance and predictability going forward

*Please see glossary for definition of ACV, GACV and Free Cash Flow.

© 2024 Aspen Technology, Inc. All rights reserved.

$137m

Free Cash Flow

3

Q3-FY24 DGM and SSE Updates

Digital Grid

Management

• Solid results, performing to expectations
• Steady progress in building out global pipeline
• Strengthening sales forecasting

Q3 Win Highlights

Won large term ADMS and OMS deal on high performance across multiple criteria

Subsurface Science

& Engineering

• Softer quarterly growth
• Push out of new business and renewal deals
• Solid CapEx spend in place for remainder of CY 2024

© 2024 Aspen Technology, Inc. All rights reserved.

Displaced incumbent at national oil co. in LATAM on strength of seismic tech and advisory capabilities

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Expanded business with world- leading EPC to support co.'s efficiency and sustainability objectives

Manufacturing &

Supply Chain

• Delayed Q2 deal closed and sales activity picked up, offset by push out of some deals
• Chemicals downturn remains a headwind
• Early customer commitments for Unified Planning

Multiple refining co.'s went live with Unified Planning and Scheduling in Q3

Asset Performance

Management

• Now expect flat growth in FY24 due to lower growth and higher expected attrition in fiscal year
• Simplifying go-to-market strategy

One of world's largest offshore energy producers signed APM

deal to support predictive maintenance for rotating equipment

We are taking the necessary steps to drive improvements in areas that are both within our control and able to better position us to achieve our objectives in Q4 and beyond

© 2024 Aspen Technology, Inc. All rights reserved.

Welcoming New Leaders

to AspenTech Team

• Newly appointed CFO, David Baker, brings deep financial acumen and operational expertise
• Added David Henshall, former CEO of Citrix Systems and proven software leader, as director on AspenTech Board

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All repurchases made pursuant to $300m share repurchase authorization for FY24

FY24 Guidance*

We believe our updated FY24 guidance is prudent in the context of our Q3 performance