altium limited asx announcement...altium limited asx announcement acn 009 568 772 . altium limited -...

Altium Limited ASX Announcement

ACN 009 568 772

Altium Limited - Investor Presentation Sydney, Australia - 19 March 2013 - The executive management of electronics

design software company Altium Limited (ASX:ALU) will today hold an investor

presentation in Sydney at the office of Bell Potter providing an update of the

company’s corporate and business strategy.

The attached presentation will be given. A copy can also be found on the

company’s website: www.altium.com.

Investor Relations contact details: Alison Raffin - Company Secretary Ph:+61 2 9410 1005 ENDS About Altium Altium Limited (ASX:ALU) creates electronics design software. Altium’s unified electronics design environment links all aspects of electronics product design in a single application that is priced as affordable as possible. This enables electronics designers to innovate, harness the latest devices and technologies, manage their projects across broad design ‘ecosystems’, and create connected, intelligent designs. Founded in 1985, Altium operates worldwide. For more information, visit www.altium.com. Altium, Altium Designer and LiveDesign, and their respective logos, are trademarks or registered trademarks of Altium Limited, or its subsidiaries. All other registered or unregistered trademarks mentioned in this release are the property of their respective owners, and no trademark rights to the same are claimed.

http://www.altium.com/

http://www.altium.com/

Copyright © 2013 Altium Limited Page 1Copyright © 2013 Altium Limited

19 March 2013

Investor Meeting

Copyright © 2013 Altium Limited Page 2

Disclaimer

This Presentation has been prepared by Altium Limited (ACN 009 568 772) and is for information purposes only. It does not constitute financial product or investment advice or a recommendation to acquire Altium shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Altium is not licensed to provide financial product advice in respect of Altium shares.

Financial dataAll dollar values are in US dollars(US$) unless as otherwise presented

Future performanceForward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. An investment in Altium shares is subject to investment and other known and unknown risks, some of which are beyond the control of Altium Limited. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, none of Altium employees, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

Past performancePast performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.


Corporate Strategy Overview

Kayvan Oboudiyat – CEO


Altium’s Vision

“To enable engineers to design and build intelligent products to make for a better world”

Our vision is underpinned through recognizing that:

Electronics is at the heart of building a smarter planet

Future of electronic design is defined by smart connected devices


Altium Electronic Design Automation Software

Altium Content

Altium NanoBoard Prototyping Boards

Altium Community

Altium Ecosystem

Altium Design Data Management

Altium Vault

What We Do

Altium enables engineers to design and build intelligent products to make for a better world


Growing Global Reach

Headquarters in Shanghai, China

Research & Development Centers in Amersfoort, Netherlands and Shanghai, China

Sales and Support Offices in Australia, China, Germany, Russia, Switzerland and the United States

Rapidly growing network of channel partners, with over 50 authorized Value-Added Resellers


Diversity of Applications

Altium tools are widely used in a variety of industries

AutomotiveElectronics &

High-Tech Life SciencesAerospace &

DefenseConsumer Electronics

Semiconductors Industrial Controls & Automation

Research & Education

Mobile Devices & Communications

Computers


Smart Connected Devices

Climate control unit - allows driver to control temperature with thermostat. Also detects pollutants and shuts off air intake accordingly`

Parking aid - operates warning signal to let driver know how close they are to object behind them

Engine management - controls fuel injection, engine temperature, ignition

Automatic transmission - monitors weather, load, incline and position of accelerator to select best gear

Airbag - triggers front and side airbags in event of crash or impact

ABS - controls brakes in emergency and can brake any of four wheels to correct a potential skid

Alarm and immobiliser - controls security. Engine starts when two codes sent wirelessly via aerial in steering wheel

GPS – acquires position data from satellite and using road database provides direction to driver


Diversity of Accounts

Engineers worldwide in multiple industries of all sizes design with Altium

AutomotiveElectronics & High-Tech Life SciencesAerospace & Defense Consumer Electronics

Semiconductors Industrial Controls & Automation Research & EducationMobile Devices & CommunicationsComputers

The t

rade

marks

and l

ogos

pres

ente

d he

re ar

e tho

se of

the r

espe

ctive

comp

anies

and

Altiu

m ma

kes n

o clai

m of

trade

mark

or ot

her r

ights

ther

ein


Why Our Customers Buy Altium

Capability to develop smarter devices with strong differentiation

Shorter time-to-market

Maximising return by hitting the market window

Development cost reduction

Hitting release targets 90% of the time or better


Why Engineers Demand Altium Designer


Altium’s Corporate Strategy

Mandate to pursue sustainable, long-term profitability– Strong revenue growth

– Value discipline

A rolling three-year strategic plan supported by:– Openness in all pursuits – technology platform & business model

– Customer centricity

– Focusing on our core competency

– Building financial strength

– Strategic partnerships

– Right balance


Growth Drivers

Expansion to upper and lower market

segments

Need –Lower Total Cost of Ownership (TCO)

Need –More Design Capability

(According to recent research by Gary Smith EDA)

PCB Design Software Market


Growth Drivers

Sustainable organic revenue growth underpinned by robust market segment growth in “Lower Mainstream” – Altium’s sweet spot

Expansion to the upper market segment through a new product structure & closing the technical capability gap

Expansion to the lower market segment through partnership with component suppliers

China opportunities – large user base & “Internet of Things” (IoT) opportunities


Growth Drivers

Product Development Strategy

Focus our product development efforts around Board-Level design

Close the capability gaps between Altium and our competitors

Emphasise “system integration” and “openness” with design tools

BoardBoard--Level Level DesignDesign


Financial Overview

Richard Leon – CFO


FY 2012 Highlights

Strong sales performance

– Sales up 21% to $61m, Revenue up 14% to $55m

– Strong performance in subscription revenue

Disciplined cost management

– Operating expenses^ down 2% to $47m

Profit improvement

– Underlying profit^ $13m up from $2m

– Improvement in reported results

Improved Balance Sheet

– Net cash doubled to $13m

– No debt

Unfranked dividend of AUD 5 cents/share

– (Interim FY13 dividend of AUD 3 cents/share)

Strong Performance

^ Operating expenses & Underlying profit excludes one-off costs and non-cash expenses as reported (refer appendix)^ Operating expenses & Underlying profit excludes one-off costs and non-cash expenses as reported

(1st half)


Continued Growth

Predictable subscription sales– 44% of sales derived from subscriptions and continues to grow

– High subscription attachment to license sales contributes to growth

Solid license sales – Disciplined product development to reduce impact of irregular

releases and to support license sales

Other revenue streams– Embedded software compiler licenses and services contribute

reliable and ongoing revenue $5m-$6m annually

– Training revenue growth ~5% delivering $3m-$4m annually

Continued sales & revenue growth supported by

subscription model


Drivers for Solid Sales Growth

1. Expanding into addressable market

2. Growth in operating regions

3. Sustainable subscription growth


Expanding into Addressable Market

Addressable Market – estimated >$700m market for 2013

Altium is currently positioned and performs strongly in the ‘Lower Mainstream’ segment

– Forecast seat growth CAGR 10% in ‘Lower Mainstream’ as opposed to CAGR 2%-3% growth in other segments*

Expansion into other segments

– Already see success in expanding into other segments driven by our product’s ability to address customers’ changing needs

– Targeted product development to achieve further commercial expansion into other segments

Leading position in fastest growing

segment

* Gary Smith* According to recent research by Gary Smith EDA


Growth in Operating Regions

Global coverage

Expanded reach in Americas through sales channel development

Europe return of business confidence

Strategic move to China to capitalise on large user base and access to larger talent pool

Strong sales across all

operating regions

1st half


Content Driven Subscription

Strong subscription attachment rates on license sales paired with high renewal rates support predictable ongoing revenue streams

Meeting customer needs through continuous stream of up-to-date content to match the fast pace of change

Continue R&D investment to deliver subscription value to customers

Continuing growth in subscription base from high attachment & renewal rates

$25m

FY12 subscription sales $25m up 27% from previous year


Disciplined Cost Management

Discontinuation of non-core projects in 1st half FY13 – Savings up to $1m annually

‘Other’ costs – one-off relocation and restructuring costs completed in 1st half FY13

– non-cash items include onerous lease provision (FY12) & share based payments (FY13)

Value Framework – Rigorous cost management process

– Disciplined cost approvals

Low capital expenditure requirements

Commercially focused R&D spend

Value based cost management


Summary

Expect continued sales growth– New product released in early February expected to drive license sales

– Continued investment in content delivery to support subscription growth

Mixed macro economic environment– Americas expected to grow with early signs of recovery

– Europe may be impacted by slower growth

Commercially focused R&D

Sustainable profitability to support continued return of value to shareholders

Discipline in product delivery and customer centricity to support business growth


Q & A

altium limited asx announcement...altium limited asx announcement acn 009 568 772 . altium limited -...

Documents