Legal Notices

ANSYS UK LTD

MODERN SLAVERY STATEMENT FOR FINANCIAL YEAR 2021

This statement is made pursuant to s.54 of the Modern Slavery Act 2015 and sets out the steps that Ansys UK Ltd has taken and is continuing to take to ensure that modern slavery or human trafficking is not taking place within our business or supply chain.

Our Organisation

Ansys UK Ltd employs over 300 professionals and specializes in engineering simulation solutions in finite element analysis, computational fluid dynamics, electronics, semiconductors, embedded software and design optimization. Ansys UK licenses software and provides associated services to customers from a board range of industries including automotive, aerospace, construction, energy, high-tech, telecom, consumer goods and healthcare. Our customers are essentially based in Europe but some of them are located internationally. Our suppliers are essentially based in the UK but some of them are located internationally.

Our Policies

We operate a number of internal policies and procedures to ensure that we are conducting business in an ethical and transparent manner. These include:

Procedures

Ansys UK is working to establish procedures that contribute to ensuring modern slavery does not occur in the business or supply chain.

Employment:

• Robust recruitment processes in line with UK employment laws, including: ‘right to work’ document checks; contracts of employment and checks to ensure everyone employed is 16 and above.
• Market-related pay and reward, which is reviewed annually.
• Wellbeing activities and initiatives to support employees’ physical and mental wellbeing and lifestyle choices.
• Our Code of Business Conduct and Ethics acknowledges and prohibits specifically practices such as human trafficking, physical abuse of workers, or any form of child labour.

Training:

Ansys UK has a compliance training program for Ansys UK employees and for third parties Ansys UK has a business relationship with that is continuously maintained. This compliance training program covers a broad range of areas including business ethics.

Transparency in Supply Chain:

Ansys UK has a compliance training program for Ansys UK employees and for third parties Ansys UK has a business relationship with that is continuously maintained. This compliance training program covers a broad range of areas including business ethics.

An examination of the Ansys UK supply chain:

Over 220 suppliers were identified for 2021.  Those whom Ansys UK pays £100,000 and above (89% of total spend) have been mapped according to location, size and industry, to identify potential indicators of slavery. Of these:

• 100% are located within the UK or other low risk countries.
• 85% are companies with an annual turnover of >£36m or local authorities and are therefore covered by the Modern Slavery Act requirements.
• 0% are companies in high-risk sectors such as hospitality and leisure, service, retail, construction, and food and beverage industries.

There is an ongoing effort to establish:

• confirmation from key suppliers, of compliance to the Modern Slavery Act through their own modern slavery statements as part of the future Critical Vendor due diligence process.
• a responsible Procurement Policy, which includes commitment to and focus on suppliers’ ethical supply chain(s).
• a Supplier Code of Conduct, used for all new major suppliers of goods or in re-tendering, clearly stating Ansys UK’s intention to step away (without penalty) if any occurrences of modern slavery is discovered and/or ignored.
• Both the Procurement Policy and Supplier Code of Conduct will be reviewed periodically, and updated as and when deemed appropriate by Ansys UK, to ensure they are continually developed and remain fit for purpose.
• We will know the effectiveness of the steps that we are taking to ensure that slavery and/or human trafficking is not taking place within our business or supply chain if no reports are received from employees, the public, or law enforcement agencies to indicate that modern slavery practices have been identified.

Employee Responsibilities

Any Employee who becomes aware of a violation of this policy is to report the situation to the Manager of Ethics and Compliance or through the Ansys Ethics Line, which is available 24 hours per day:

• Telephone: 1-855-729-0134 (US & Canada)
• Internet: https://secure.ethicspoint.com/domain/media/en/gui/1543/index.html
• Mail: Manager of Ethics and Compliance, 2600 Ansys Drive, Canonsburg, PA 15537

Alternatively, Employees can report the situation to the Director of Legal – EMEA.

Policy Coordination

The Director of Legal – EMEA will coordinate the application of this policy at Ansys UK and with its affiliates.

Date revised: 4 May 2022

Date next revision due: 15 March 2023

ANSYS UK Ltd 5th April 2021 Gender Pay Gap Report and Narrative

Background

The head count of ANSYS UK Ltd was over 250 after the merger of Granta Design Ltd and ANSYS UK Ltd on 1st April 2021, hence ANSYS UK Ltd is reporting its gender pay gap figures through the metrics required by the UK Government.

It is important to note that these figures do not compare men and women doing the same role, instead they compare all men and all women, regardless of their role.

Data used

The hourly pay rate is used for all full-pay relevant employees, which for ANSYS UK Ltd on 5tn April 2021 were all employees except the two employees on maternity leave. The hourly pay rate is the base salary in April 2021 plus any commission or bonuses paid in April 2021 after any deductions due to salary sacrifice. Note that the largest salary sacrifice is for the employee pension contribution, which can be very large in some cases, considerably decreasing the hourly rate in these cases.

The bonus figure is used for all relevant employees, which for ANSYS UK Ltd on 5th April 2021 was all employees. The bonus figure includes any commission, bonuses or awards that were made in the year up to and including April 2021, again less any salary sacrifice. Hence if an employee chose to salary sacrifice all of their annual bonus into their pension, they will be recorded as having not received a bonus for the purposes of these calculations. The bonus figures also include all stock awards that were taxed in that year, which includes stock options awarded up to 10 years ago and RSUs.

Diversity, Equity, Inclusion and Belonging

The Investing in our People and ONE Ansys Culture section of the 2021 Ansys Corporate Responsibility Report highlights:

“Our people are the core of driving product innovation for our customers. We aim to create a culture of belonging and inclusion where everyone can be themselves and thrive as a ONE Ansys team. At the heart of our culture is a strategic focus on our people.

Our approximately 5,100 full-time employees (as of December 31, 2021) around the world are a unified force making the impossible, possible. As we implement our simulation strategy, a strong team and culture are essential.

We continue to drive our four-pillared DEI&B strategic roadmap focused on pipeline development, culture, education, and accountability.

Pipeline Development – In the U.S., our recruitment of and outreach to diverse talent expanded during 2020-2021, including strengthening relationships with historically Black colleges and universities (HBCUs), minority engineering societies, women in technology groups, veterans’ organizations, and LGBTQ+ organizations. These initiatives enable us to interface with more diverse talent pools and are a part of our broader recruitment strategy. This has included adding events, talent database tools and job posting capabilities with our existing partners, as well as establishing new partnerships and expanded tools, such as Mogul, which includes access to an ecosystem of 430M diverse applicants.

In addition to external pipeline development, we have been focused on providing opportunities to build our internal pipeline as well. This has been evident through the experiences provided to our interns and early career talent through activities like a learning series and role specific development opportunities. The Ansys internship program provides an opportunity for Ansys to open the door to even more diverse talent entering the workforce.

Culture – In 2021, we continued to grow our employee resource groups (ERGs) to foster a culture of inclusion and belonging with approximately 787 employees (as of December 31, 2021) engaged in one or more ERGs at Ansys: Ansys (dis)Ability Network, Black Employee Network, Latino Connection, Pride Alliance, Veterans, and Women in Tech. • Each ERG has a visible and committed executive sponsor

• Each has a global focus with representation across all regions and locations
• Over 30 events were sponsored in 2021, including inclusive conversations, leadership presentations, training, and networking
• Alignment with Ansys charitable giving program to facilitate ERG mission and involvement
• Leverage ERGs to inform and prioritize global policies and practices
• Opportunities for external outreach, partnerships, and engagement efforts

Inclusive Leadership Training – In 2021, we educated 100% of our people managers on inclusive leadership concepts of overcoming unconscious bias, building inclusive teams, and making effective decisions in areas of recruitment, selection, growth, and development. All new people leaders continue to participate in and complete training on a rolling basis.

Accountability – In 2021, we solidified our foundation for understanding our diverse workforce using metrics and analytics to drive accountability through the entire applicant and employee lifecycle.

We also evolved our partnerships with industry leaders to continue to learn from pacesetters in the technology industry.

Attracting and Retaining Talent Our talent strategy is focused on attracting diverse top talent, recognizing and rewarding performance, and continually developing, engaging, and retaining our talented employees.

In 2021, we launched behavioral based interview training and robust hiring manager selection tools. The success profile and career framework launched in 2020 serve as a foundation to our approach in identifying the skills and competencies that make people successful at Ansys.

At Ansys, we place a strong emphasis on candidate care and outreach. In 2021, we expanded our outreach to diverse talent pools, including more inclusive, broader advertising, as well as direct outreach and sourcing capabilities. In addition to outreach to minority groups and institutions, we attended career and networking events aimed toward recruiting diverse candidates. In 2021, we expanded these efforts, attending numerous events that provided exposure to more than 16,000+ diverse job seekers.”

Calculations

The following calculations are made using the data above:

• Percentage of men and women in each hourly pay quarter
• Mean (average) gender pay gap using hourly pay
• Median gender pay gap using hourly pay

• Percentage of men and women receiving bonus pay
• Mean (average) gender pay gap using bonus pay
• Median gender pay gap using bonus pay

The calculations are given below with a narrative for each section:

Percentage of men and women in each hourly pay quarter

	Percentage of men in this quartile	Percentage of women in this quartile
First Quartile	48.75	51.25
Second Quartile	69.14	30.86
Third Quartile	80.00	20.00
Fourth Quartile	87.65	12.35

The percentage of women overall was 28.8%. Thus it is clear that in the first quartile there are more women than the overall percentage, in the second quartile there are a similar number of women to the overall percentage and in the upper half there are fewer women than the overall percentage.

At Ansys there is a career framework in place which places every role onto one of three tracks: Management, Professional or Business Enablement. Each track has levels for progression. The percentage of women on the Business Enablement track is much higher than the overall percentage of women in the company. For the Professional track, the percentage of women is higher than that of the company overall for the first 3 levels but then decreases markedly for the next highest two levels. The top two levels have only three employees in the UK and they are all male.

For the Management track the first four levels have a higher percentage of women than the overall company. This decreases at the next level and there is only one person, a man, at the level above this.

It is encouraging that women are being recruited and retained at higher than the company average for the lower and mid levels of the career framework and also that the students in their year in industry at Ansys are 37.5% female. Ansys is focussing on finding ways to support more women to continue their careers further into the upper levels. The strong Women in Technology Employee Resource Group has worked with the Company to extend the mentoring scheme and also offers good networking, inspirational speakers and summits.

Mean (average) gender pay gap using hourly pay

The Mean gender pay gap in hourly pay as a percentage of men’s hourly pay is 33.68%

The hourly pay rate uses the part-time salary rather than the full-time equivalent for part-timers. Ansys supports flexible working wherever possible to encourage all employees, male and female, to find the right work-life balance. On 5th April 2021 there were 27 part-time workers, 17 of whom were female, so 18% of female employees were part-time and 4.5% of the males. This will therefore affect the mean hourly rate of females more than that for the males.

The main factor in this pay gap is the distribution of women across the career levels as described above. Ansys has set global targets to improve the ratio of women to men in the Company both as an overall metric and in the higher career framework levels.

Median gender pay gap using hourly pay

Median gender pay gap using hourly pay figure as a % of men’s hourly pay is 25.82%.

Percentage of men and women receiving bonus pay

Percentage of women who got a bonus, as a percentage of all women, is 93.62%.

Percentage of men who got a bonus, as a percentage of all men, is 96.96%.

All employees are eligible for the annual bonus if they are not on commission and they were an employee before 1st November of the preceding year. Of the 13 employees who did not receive any bonus in the data reported, all but one were either not eligible for the bonus, or they chose to salary sacrifice all the bonus into their pension (and so the gender pay gap reports this as a zero bonus).

Mean (average) gender pay gap using bonus pay

Mean gender pay gap using bonus figure is 54.09%.

Following market practice, the equity and annual bonus received, as a percentage of base salary, tends to increase as the employee goes up the career framework. As the ratio of women decreases as you go up the career framework, this leads to a higher mean and median bonus pay gap. Ansys is working to improve this metric by focussing on improving the number of women at higher career framework levels.

A higher proportion of women than the company percentage of women chose to sacrifice all of their bonus into their pension, so increasing this metric.

Median gender pay gap using bonus pay

Median gender pay gap using bonus figures is 78.68%.