Good morning, and welcome to the Ansys 2021 annual meeting of stockholders. I would now like to turn the call over to Dr. Ajei Gopal, President and CEO. Mr. Gopal? Good morning, and welcome to the Ansys 2021 annual meeting of stockholders. I'm Ajei Gopal, President and Chief Executive Officer of Ansys, and I will be the acting chair of this meeting. On behalf of everyone at Ansys, I would like to welcome our stockholders and board of directors. The last year has been unlike any other. Yet, despite the challenges we have faced from the COVID-19 pandemic, Ansys continues to thrive and to bring long-term value to our stockholders. I'm incredibly proud of Ansys's accomplishments, and I'm gratified by how my colleagues have responded to this crisis. Their dedication and ingenuity in the face of this challenge continue to be an inspiration. I would now like to turn to the business at hand. Before I call the meeting to order, I would like to first introduce the members of our Board of Directors and members of our executive management team. The members of the Board who are standing for election this meeting are Jim Frankola. Jim has been a member of our Board since March of 2021 and serves on the Audit Committee. Alec Gallimore. Alec has been a member of our Board since 2017 and serves on the Audit Committee. Ronald Hovsepian. Ron has been a member of our Board since 2012 and serves as the Chairman of the Board, the Chair of the Strategic Partnerships and Transactions Committee, and a member of the Compensation Committee and Nominating and Corporate Governance Committee. Other members of the Board of Directors are Robert Calderoni. Bob has been a member of our Board since 2020 and serves on the Audit Committee. He also serves on the Strategic Partnerships and Transactions Committee. Glenda Dorchak. Glenda has been a member of our board since 2018 and serves as Chair of the Nominating and Corporate Governance Committee. She's also a member of the Compensation Committee and the Strategic Partnerships and Transactions Committee. Barbara Scherer. Barbara has been a member of our board since 2013 and serves as the Chair of the audit committee. Lastly, Ravi Vijayaraghavan. Ravi has been a member of our board since 2020 and serves as a member of the Compensation Committee and Strategic Partnerships and Transactions Committee. I would also like to take a moment to recognize Guy Dubois, who is stepping off the board today. I would like to thank him for his invaluable insights, which contributed to many business successes during his tenure. The whole board and the management team wish him the best of luck in the future. The members of our management team with us here today include Nicole Anasenes, Chief Financial Officer and Senior Vice President of Finance, Shane Emswiler, Senior Vice President of Products, Janet Lee, Vice President, General Counsel, and Secretary, Maria Shields, Senior Vice President of Administration. Also in attendance are representatives from Deloitte & Touche LLP, Ansys's independent registered public accounting firm. Deloitte is represented here today by Daniel Potes and Allen Lorenzato. The auditors have informed me that they do not wish to make a statement, but are available to respond to any appropriate questions. The meeting will now officially come to order. In the lower right-hand corner of your screen, you will see a link for materials. The agenda and code of meeting guidelines can be found by clicking on this link. We will conduct the meeting in accordance with these documents. You will also find a Q&A link, which you can use to submit questions during the meeting. After the conclusion of the formal portion of the meeting, we will do our best to respond in the time permitted to appropriate questions. We will also post and answer each appropriate question received following the meeting. There is also a help link should you need technical assistance during the meeting. At this time, I would like to introduce Barry Rosenthal from American Stock Transfer, the inspector of election for the meeting. Barry will report on the mailing of the notice for this meeting and the stockholder list, as well as confirm that we have a quorum. Barry, please go ahead. Thank you, Ajei. I have a complete list of stockholders of record of the company's common stock as of March 19th, 2021, which was the record date for this meeting. The stockholder list shows that the holders of 87,135,525 shares of common stock of the company are entitled to vote at this meeting. In accordance with Delaware law, a list of stockholders as of the record date has been made available to stockholders and can also be accessed during the meeting by clicking on the registered shareholder list under the materials link. I also have an affidavit certifying that on March 31st, 2021, the notice of this annual meeting was mailed to all stockholders of record at the close of business on the record date. I have been informed by the proxy tabulator that they're represented in person or by proxy 79,067,184 shares of common stock, or approximately 91% of all shares entitled to vote at this meeting. This constitutes a quorum for purposes of the meeting today, and we may now proceed with the official business of the meeting. Thank you, Barry. I declare that a quorum is present. This meeting is now duly convened for the purposes of transacting business properly brought before us. We will now proceed with the formal business of the meeting. Rena Ganjhu, Assistant Secretary, will now discuss the voting procedures. Thank you, Ajei. Voting today is by proxy and electronic ballot. Each share of Ansys common stock is entitled to one vote. Any stockholder who has not voted or who wishes to change his or her vote may do so by clicking on the Vote button located on the lower right-hand corner of their screen and following the instructions provided. Stockholders who have submitted proxies or have previously voted via the internet or by phone and do not wish to change their vote do not need to take any further action. Your votes will be counted automatically. The time is now 11:40 A.M., and the polls are open for voting for each matter to be voted on. They will close promptly following the presentation of the last proposal. Thank you, Rena. There are four management proposals to be considered by the stockholders today, as well as one stockholder proposal as described in the proxy statement made available to stockholders and posted on the web portal for this meeting. Unless otherwise specified in the proxy, it is the intention of the persons named in the proxy to vote the shares represented by each properly executed proxy in accordance with the board's recommendation on the relevant proposal. The first management proposal is the election of three Class I directors for three-year terms. Based on the recommendation of our Nominating and Corporate Governance Committee, our Board of Directors has nominated Jim Frankola, Alec Gallimore, and Ronald Hovsepian for election as Class I directors to serve until the annual meeting of stockholders in 2024. The second management proposal is the ratification of the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for fiscal year 2021. The third management proposal is the approval of Ansys, Inc's 2021 Equity and Incentive Compensation Plan. The fourth management proposal is a non-binding advisory vote on the compensation of our named executive officers. The stockholders have been asked to vote on this issue on an advisory basis. However, the Compensation Committee values the opinions of our stockholders and intends to take the results of the vote on this proposal into account in its future decisions regarding the compensation of our named executive officers. I would now like to turn the meeting over to Rena. Thank you, Ajei. The fifth and final item of business is a stockholder proposal requesting the adoption of a simple majority voting provision. The stockholder proposal, the stockholder's supporting statement, and the company's statement of opposition are included in the proxy statement. We have asked the stockholder to limit his comments to three minutes on the topic of his proposal and note that the viewpoints he expresses are his own and do not reflect those of Ansys. Mr. Chevedden, a stockholder, is presenting the proposal. Mr. Chevedden, please go ahead. Hello, this is John Chevedden. Can you hear me okay? Yes, Mr. Chevedden. Please go ahead. Proposal five, simple majority vote. Shareholders request that our board take each step necessary so that each voting requirement in our charter and bylaws that calls for a greater than simple majority vote be replaced by a requirement for a majority of the votes cast for and against such proposals or a simple majority. If necessary, this means the closest standard to a majority of the votes cast for and against such proposals. Shareholders are willing to pay a premium for shares of companies that have excellent corporate governance. Super majority voting requirements, like our 80% super majority requirement, have been found to be one of six entrenching mechanisms that are negatively related to company performance, according to What Matters in Corporate Governance by Lucian Bebchuk of the Harvard Law School. Super majority requirements are used to block initiatives supported by most shareholders but opposed by a status quo management. Our 80% supermajority rule means that 97% of the shares that typically vote at our annual meeting would have to approve certain modernization steps for our company. Management opposition to this proposal means that management is opposed to adopting new best practices of corporate governance. Management is insisting on an outlandish 97% shareholder approval in order to improve our corporate governance and increase management accountability to shareholders. Church & Dwight shareholders gave 99% support to a 2020 proposal on this topic, and ConocoPhillips shareholders gave 99% support to this proposal topic on Tuesday. In anticipation of impressive shareholder support for this proposal, an enlightened corporate governance committee and enlightened board of directors could have expedited adoption of this proposal topic by giving shareholders an opportunity to vote on a management version of this proposal at this meeting today. Hence, adoption could have taken place now instead of later. Management promotes the fallacy that shareholders should be apathetic about improving management accountability to shareholders with this proposal simply because we have average governance practices that a lot of other companies have. The unfortunate attitude of management is that since we are average, our goal is to block improvement. A red flag that management accountability to shareholders needs to be improved is that 16% of shares rejected management pay in 2020, when a 5%-10% rejection is the norm at well-managed companies. Please vote yes. Simple majority vote, proposal five. Thank you for sharing your proposal with us and your interest in our company. For the reasons set forth in the proxy, the board recommends a vote against this proposal. I would now like to turn the meeting back over to Dr. Gopal. Thank you, Rena. I now declare the polls closed. The voting period has concluded. I will now ask for a report on the results. Ajei, the preliminary report of the Inspector of Election covering the proposals at the meeting are as follows. On the election of Jim Frankola, approximately 99% of the shares voting have been voted in favor. On the election of Alec Gallimore, approximately 99% of the shares voting have been voted in favor. On the election of Ronald Hovsepian, approximately 92% of the shares voting have been voted in favor. This represents, in each case, a majority of the votes cast. The proposal is carried. I declare that Jim Frankola, Alec Gallimore, and Ronald Hovsepian are duly elected as the class one directors of the company. On the ratification of the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for fiscal 2021, approximately 97% of the shares voting have been voted in favor of such proposal. This represents a majority of the votes cast. I declare that the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for fiscal 2021 has been ratified. On the approval of the Ansys, Inc 2021 Equity and Incentive Compensation Plan, approximately 92% of the shares voting have been voted in favor of such approval. This represents a majority of the votes cast. I declare that the Ansys, Inc 2021 Equity and Incentive Compensation Plan has been approved. On the resolution concerning the non-binding advisory vote on the compensation of the company's named executive officers, approximately 89% of the shares voting have been voted in favor of such approval. This represents a majority of the votes cast. I declare the resolution approved. On the approval of the stockholder proposal requesting the adoption of a simple majority voting provision, approximately 87% of the shares voting have been voted in favor of such approval. This represents a majority of the votes cast. I declare the proposal approved. As previously mentioned, these voting results are preliminary. In accordance with the federal securities laws, the final results of the voting will be reported in the current report on Form 8-K that the company will file with the Securities and Exchange Commission within four business days after the meeting. Thank you, Rena. The final report of the Inspector of Elections will be filed with the records of the meeting. There being no further business to come before this meeting, I will now entertain a motion to adjourn the formal part of the meeting. Moved. Is there a second? Seconded. That concludes the formal portion of today's meeting. The annual meeting is now adjourned. I thank you all for your participation. I would now like to turn the meeting over to Kelsey DeBriyn, Vice President, Investor and Government Relations, to moderate the Q&A session. Thank you, Ajei. Please note that our discussion today may include forward-looking statements and our actual results may differ materially from those discussed here. Additional information concerning factors that cause such differences can be found in our most recently filed annual report on Form 10-K and quarterly report on Form 10-Q. We will now open the floor for any additional questions from our stockholders. As a reminder, stockholders may click on the Q&A button in the lower right-hand corner of their screen and then type and submit the question in the box as indicated. Our first question, I will direct to our CEO, Ajei, and the first question is: Please give two examples of product innovations in the last six months. Thank you for that question. We recently announced Ansys 2021 R1. That release has significant strengthening of our entire physics-based sensor simulation solutions. For example, we introduced the industry's first physics-based real-time radar simulation technology. This technology uses GPUs to speed up simulation 3 million times compared to previous CPU-based solutions. With the solution, customers can conduct driving simulations in real time with multiple radars capturing physically accurate pictures of the surroundings. We're very excited about that innovation. Another area of excitement is the work that we have with electrification. As you know, electrification complexity and new government mandates to becoming carbon neutral are driving huge demands for simulation. We're seeing the wide adoption of our electric machine design solution as customers are frankly in a race to deliver efficient and reliable motors for electric vehicle powertrains. Battery management system designs, these are all areas where simulation is growing as new regulations regarding thermal runaway, which is the main cause of fires in electric vehicles, are rolled out globally. We're also seeing customers successfully use our technology in the deployment of cable harnesses. These are areas that we're very excited about in terms of new technologies and capabilities. Thank you. Our second question I will also direct to our CEO, Ajei Gopal. The question is: what type of businesses might Ansys acquire? Well, our acquisition strategy is in support of our corporate strategy, we are continuing to invest in the business because we see such an incredible opportunity in front of us. Naturally, I cannot tell you exactly what companies, if any, we have in our acquisition pipeline. With that said, we are very disciplined about how we invest, we're focused on those areas that build value for our customers. By following the strategy, we've had success with recent acquisitions such as LSTC and Granta Design, Lumerical, and so on. Thank you. Our next question I will direct to our CFO, Nicole. The question is: please give some examples of cost-cutting measures that you've taken in the last six months. Thank you for the question. Continuing on what Ajei referenced, we are continuing to invest in the business because there is just such a huge opportunity ahead of us in pervasive simulation. With that said, we're very disciplined about how we invest, and to Ajei's point, we're very focused on investing in areas that build value for our clients, as well as areas that support our digital transformation and ability to continue to scale. Thank you. Our next question will also be directed to our CFO, Nicole. The question is: what is the total CEO pay for 2020 and 2019? Thank you for the question. The information related to those details are available in our 2021 proxy. Thank you, Nicole. We have no remaining questions at this time. Thank you for your questions. That concludes the Ansys 2021 annual meeting of stockholders. Thank you for attending, and enjoy the remainder of your day.
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