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JP Morgan1 April 2015
Electronics Putting Internet into Things
Sam WeissChairman
2
DisclaimerThis presentation has been prepared by Altium Limited (ACN 009 568 772) and is forinformation purposes only. It does not constitute financial product or investment advice or arecommendation to acquire Altium shares and has been prepared without taking into accountthe objectives, financial situation or needs of individuals. Before making an investment decisionprospective investors should consider the appropriateness of the information having regard totheir own objectives, financial situation and needs and seek legal and taxation adviceappropriate to their jurisdiction. Altium is not licensed to provide financial product advice inrespect of Altium shares.
Future performanceForward looking statements, opinions and estimates provided in this presentation are based onassumptions and contingencies which are subject to change without notice, as are statements aboutmarket and industry trends, which are based on interpretations of current market conditions.Forward looking statements including projections, guidance on future earnings and estimates areprovided as a general guide only and should not be relied upon as an indication or guarantee offuture performance. An investment in Altium shares is subject to investment and other known andunknown risks, some of which are beyond the control of Altium Limited. No representation orwarranty, express or implied, is made as to the fairness, accuracy, completeness or correctness ofthe information, opinions and conclusions contained in this presentation. To the maximum extentpermitted by law, none of Altium employees, its directors, employees or agents, nor any otherperson accepts any liability, including, without limitation, any liability arising out of fault ornegligence, for any loss arising from the use of the information contained in this presentation. Inparticular, 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 suchinformation. Such forecasts, prospects or returns are by their nature subject to significantuncertainties and contingencies. Before making an investment decision, you should consider, with orwithout the assistance of a financial adviser, whether an investment is appropriate in light of yourparticular investment needs, objectives and financial circumstances. Financial dataAll dollar values are in US dollars (US$) unless as otherwise presented.
IntroductionIntroduction
Agenda
Electronics - Putting the Internet & Smart into Things2
1
Designing Smart Connected Devices
Printed Circuit Boards Central to Electronics
About Altium
4
3
The Future of Microcontroller Based Electronic Design for theAutomotive Industry
5
4
30 Years of Continuous R&D in PCB Design Software
2010
1985
1991
1999
The company was founded by creatingthe first version of Altium Designer,Protel PCB
Altium Launches Protel forWindows - World's firstMicrosoft Windows-basedPCB design system
Altium Successfullycompletes an IPO onAustralian StockExchange
2006
Now
Altium launches AltiumDesigner 6, the worlds firstNative 3D PCB designsoftware
Altium launches Altium Designer13 introducing DXP 2.0, its nextgeneration integration platformopening up Altium Designer tothird-party developers
Altium launches PCBWorksintroducing a specialized versionof its PCB Design Software forSolidWorks
5
IntroductionAltiums H1 FY15 Financial Highlights
REPORT CARD
Acquire New Customers. Continued to aggressively acquire newaccounts at the same level as FY14.
Increase subscription renewals rates. Renewal rates in key regionsimproved from 81% to 84% (3%compared to FY14).
Maintain top line growth andexpand margins. First half 17% revenue growth andEBIT margin increased from 16% to26%.
$40
$35
$30
$25
$20
$15
$10
$5
$0H1FY14 H1FY15
EXPENSES EBIT EBIT margin %
Expanding Margins26%
16%
$37.8M Revenue(up 17% pcp)
AU 8cDividend
(up 50%)
$59.1MNet Cash
EBIT$9.6M
(up 84% pcp)
27,000Subscribers
(51% of H1 Revenue)
$33.7M Sales(up 9% pcp)
5.63 EPS(up from
3.11)
H1FY13
6
Altium Products
ElectronicDesignConcept Design Capture& Verification
EmbeddedSoftware
Development
FPGAPrototype
Printed CircuitBoard Layout Manufacturing
Altium VaultDesign Data Management &Collaboration Software
TaskingEmbedded Software
Development Tools
3D Printed Circuit BoardDesign Software
7
High Profile Customers
Automotive
Electronics & High-Tech
Life SciencesAerospace & Defence Consumer- Electronics
SemiconductorsIndustrial ControlsResearch & Education
Mobile Devices
Computers
8
PCB Design Software - Global Market Share
Printed Circuit Board Estimated Market Share (by Revenue)
Source: PCB Market Trends 2014 Gary Smith EDA
9
Global Reach
Main Operations CentresSan Diego, Karlsruhe, Shanghai
Research & Development CentresSan Diego, Ukraine, Netherlands, Shanghai
Sales and Support CentresSan Diego, Boston, Karlsruhe, Shanghai, Sydney
Network of channel partners, with over 50 authorizedValue-Added-Resellers
Global HQSan Diego
Corporate & Registered OfficeASX Listing Sydney
Regional HQShanghai
Regional HQKarlsruhe
10
Altiums High Level Strategy
Build Momentum byFocusing on Core
Strengths
Expand Market Reach throughPartnership
Grow Capability Through Acquisition
Partnership
Focus
Acquisition
Agenda
Electronics Putting the Internet & Smart into Things2
1
Designing Smart Connected Devices
Printed Circuit Boards Central to Electronics
About Altium
4
3
The Future of Microcontroller Based Electronic Design for theAutomotive Industry5
12
Rise of Smart Connected Devices
Informationis IndexedSearch & Discovery
1990sWeb 1.0
Social Networking
2000sWeb 2.0 People are Networked
Electronics putsInternet into ThingsInternet of Things
2010sWeb 3.0
13
IOT is Everywhere
Agenda
Electronics Putting the Internet & Smart into Things2
1
Designing Smart Connected Devices
Printed Circuit Boards Central to Electronics
About Altium
4
3
The Future of Microcontroller Based Electronic Design for theAutomotive Industry
5
15
Use of Smart Electronics in Everyday Things
The Nest thermostatlearns the temps youlike, turns itself downwhen you're away,and has remotecontrol through Wi-Fi
Complex Design withMultiple Printed CircuitBoards
16
Increasing Use of Electronics in Modern Cars
Up to 75% Electronic Value (Hines, 2012)Hybrid/Electric
Up to 40% Electronic Value (Hines, 2012) Traditional Vehicle
60%By 2017
Designing Smart Connected ProductsDesigning Smart Connected Products
Cloud System EngineeringCloud application development and infrastructuremanagement
Development of Control Systems inElectromechanical devices
Embedded System Engineering
Creation of high-performance electronic hardwarewith complex form factor
Electronics Engineering
Mechanical EngineeringDesigning complex objects with sophisticatedelectromechanical behaviour
Electrical EngineeringDevelopment of wire harness and electrical systems inElectromechanical devices
ECAD
MCAD
CloudComputing
The Multidisciplinary Challenge of Design
18
Electromechanical & Mechanical CAD Integration
Physical Domain Abstract Domain
Agenda
Electronics Putting the Internet & Smart into Things2
1
Designing Smart Connected Devices
Printed Circuit Boards Central to Electronics
About Altium
4
3
The Future of Microcontroller Based Electronic Design for theAutomotive Industry5
20
Printed Circuit Boards Central to Electronics
At the Heart of All Intelligent Systems Are Electronics and Printed Circuit Boards
21
Diversity of Applications
Automotive
Electronics &High-Tech
Life SciencesAerospace &Defence
Consumer-Electronics
SemiconductorsIndustrial ControlsAutomation
Research &Education
Mobile Devices &Communications
Computers
22
Increasing Complexity for PCB Design
23
Expanded Product Range to Meet Growing Demands
Agenda
Electronics Putting the Internet & Smart into Things2
1
Designing Smart Connected Devices
Printed Circuit Boards Central to Electronics
About Altium
4
3
The Future of Microcontroller Based Electronic Design for theAutomotive Industry
5
25
Microcontrollers are at the Heart of Smart Cars
Climate control unit -allows driver to controltemperature withthermostat. Also detectspollutants and shuts offair intake accordingly
Parking aid - operates warningsignal to let driver know howclose they are to object behindthem
Engine management - controls fuelinjection, engine temperature, ignition