Letter from our CEO

At Cadence, we provide the technologies our customers need to design and optimize innovative and differentiated electronic products that conserve energy and power. In 2019, we continued this world-wide focus by adding even more to our technology portfolio and by adding power-aware benefits. Moving forward, we will remain committed to advancing this effort for our customers, investors, and communities and to fostering an environment where our employees can make an impact. We are proud to share with you our sustainability report for 2019, which highlights the progress we made in our environmental, social, and governance efforts. This report shows the work that we are doing in six key areas that impact our business—innovation, workforce development, data privacy and security, environmental sustainability, governance, and supply chain management. Creating a culture of inclusion and equity is especially important to Cadence and our long-term success. After a detailed review of our compensation practices, as of July 1, 2019, we had no statistically significant differences in salaries based on gender in any country where Cadence has employees or based on race among Cadence employees in the United States. We also made strong progress in 2019 in tracking and reducing our greenhouse gas (GHG) emissions and energy use. This report reflects feedback we received from our key stakeholders over the past year and oversight by our Board of Directors through its Corporate Governance and Nominating Committee. I encourage you to read our sustainability report to learn more about how we made a global impact in 2019 through our One Cadence—One Team culture for the benefit of all of our stakeholders. Sincerely,

Lip-Bu Tan Chief Executive Officer