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Altium Limited ASX Announcement

Altium Limited - February 2015 Investor Presentation Sydney, Australia - 26 February 2015 - The executive management of electronics design software company Altium Limited (ASX:ALU) will today hold investor presentations at the offices of Blue Ocean Equities and Bell Potter in Sydney providing an update of the company’s business strategy and financial performance. The attached presentation will be given. A copy can also be found on the company’s website: www.altium.com.

Investor Relations contact details: Kim Besharati - VP Investor Relations & Corporate Affairs (US-based) Ph: +1 858 864 1513 Mobile: +1 760 828 3567 Alison Raffin - Company Secretary (Australian-based) Ph: +61 2 9410 1005

ENDS About Altium

Altium Limited (ASX:ALU) is an Australian multinational software corporation that focuses on electronics design systems for 3D PCB design and embedded system development. Altium products are found everywhere from world leading electronic design teams to the grassroots electronic design community. With a unique range of technologies Altium helps organisations and design communities to innovate, collaborate and create connected products while remaining on-time and on-budget. Products provided are Altium Designer®, Altium Vault®, CircuitStudio®, CircuitMaker®, PCBWorks® and the TASKING® range of embedded software compilers. Founded in 1985, Altium has offices worldwide, with US locations in San Diego and Boston, European locations in Karlsruhe, Amersfoort, Kiev and Zug and Asia-Pacific locations in Shanghai, Tokyo and Sydney. For more information, visit www.altium.com. You can also follow and engage with Altium via Facebook, Twitter and YouTube.

A L T I U M L I M I T E D

ACN 009 568 772

3 Minna Close Belrose NSW 2085 Australia

t +61 2 9410 1005 f +61 2 9410 0509

www.altium.com

Altium Mid-Year Investor Presentation 26 February 2015

Sydney & Melbourne

Delivering Strong Performance &

Building Momentum for Further Growth

Aram Mirkazemi CEO

Richard Leon CFO

INVESTOR PRESENTATION 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.

Future performance

Forward 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.

Financial data

All dollar values are in US dollars (US$) unless as otherwise presented.

Introduction Introduction

Agenda

Half Year 2015 Financial Performance & Metrics 2

1

Market Opportunity & Growth Strategy

Appendix: Company Overview & Long –Term Outlook

Company Highlights & Key Focus Areas for the Remainder of FY15

4

3

INVESTOR PRESENTATION 4

Introduction Altium’s H1 FY15 Financial Highlights

REPORT CARD

Acquire New Customers. Continued to aggressively

acquire new accounts at the

same level as FY14.

Increase subscription renewals rates. Renewal rates in key regions

improved from 81% to 84% (3%

compared to FY14).

Maintain top line growth and expand margins. First half 17% revenue growth

and EBIT margin increased

from 16% to 26%.

$40

$35

$30

$25

$20

$15

$10

$5

$0 H1FY14 H1FY15

EXPENSES EBIT EBIT margin %

Expanding Margins 26%

16%

$37.8M Revenue (up 17% pcp)

AU 8c Dividend

(up 50%)

$59.1M Net

Cash

EBIT $9.6M

(up 84% pcp)

27,000 Subscribers

(51% of H1 Revenue)

$33.7M Sales (up 9% pcp)

5.63 EPS (up from

3.11)

H1FY13

5

Significant Achievements

6

Americas Sales – Furthering Momentum

Successfully transitioning to a leveraged sales model

o High value sales through Altium direct

o Volume sales through the channel

delivering extended reach

US sales is regaining full strength o Growing new licences

o Increasing subscriptions

o Launch of PCBWorks @ SolidWorks

World in February generating strong

interest from resellers

7

European Sales – Delivering Solid Performance

Confident we will achieve full year target

○ Additional resources & management focus to

ensure targets are achieved

○ Created and filled a new leadership role: VP

Sales, EMEA

○ Indirect territories on track to achieve their quotas

○ Underlying demand remains solid

8

Other Focus Areas for the Remainder of FY15

Aggressively drive new account acquisition

Mobilise resources to further increase our subscription rates

Accelerate the roll out of the expanded product range

Close-out strategic partnership tracks to begin selling and drive revenue

Accelerate the transition of China towards value sales

We are confident to achieve our full year

FY15 target of double digit growth

Agenda

Half Year 2015 Financial Performance & Metrics 2

1

Market Opportunity & Growth Strategy

Appendix: Company Overview & Long –Term Outlook

Company Highlights & Key Focus Areas for the Remainder of FY15

4

3

INVESTOR PRESENTATION 10

Altium’s Revenue Sources

51% (50% H1FY14)

(47% H2FY14)

Subscriptions Attachment

to New License Sales

Lapsed Subscriptions Re-joining

and upgrades

Altium Subscription

(Recurring Revenue)

Subscription

Renewals

Altium Software (New Licenses)

Tasking Software (New License & Maintenance)

Other (Services & Hardware)

11

Altium’s Subscription Pool

Lapsed

Subscriptions Non-renewals

New Subscriptions Attached to New License Sales

Re-join Lapsed Subscribers Re-joining and Upgrades

Developed pool = 85% of subscription pool

H1 FY15 Renewal rate of 84.6%

(up from 81.6% FY14)

Under-developed pool = 15% of subscription pool (comprised mainly of China, Russia & Latin America)

H1 FY15 Renewal rate of 30.1%

(up from 23.4% FY14) Subscription Pool

~ 27,000 at Dec 14

+2,230 +1,330

2,700

12

Seasonality Curves - Revenue: Sales: Deferred Revenue

Sustain revenue growth (13% CAGR)

notwithstanding quarterly seasonality

Linear (Deferred Revenue)

INVESTOR PRESENTATION 13

Introduction Altium’s H1 Revenue Contribution by Region

Americas

$0

$2

$4

$6

$8

$10

$12

$14

$16

EMEA

China APAC

FY15

Historical CAGR 13%

Across All Regions

FY14 FY13 FY12 FY11 FY10 $0

$2

$4

$6

$8

$10

$12

$14

FY15 FY14 FY13 FY12 FY11 FY10

$16

$0

$2

$4

$6

$8

$10

$12

$14

FY15 FY14 FY13 FY12 FY11 FY10

$16

$0

$2

$4

$6

$8

$10

$12

$14

FY15 FY14 FY13 FY12 FY11 FY10

$16

Other

Tasking (Licenses & Maintenance)

Altium Licenses

Altium Subscription

(Flat last three years)

14

Altium’s Operating Costs

Research & Development

Sales & Marketing

General & Admin

Customer Success

Functions

Customer success:

- Software maintenance

- Technical support,

- User education

Operating leverage increase

through growth of subscription

revenue

Investment focus and deployment to

drivers of growth:

- R&D

- Sales & Marketing resources.

Workforce investment

FY15 projected FY14

15

Altium’s Balance Sheet

$60

$50

$40

$30

$20

$10

$0 FY11 FY12 FY13 FY14 Dec-14

Cash and Cash equivalents

Dec-14 Jun-14 Var

$ '000 $ '000 $ '000 %

Cash and cash equivalents 59,054 22,049 37,005 168%

Trade and other receivables 15,535 22,429 (6,894) -31%

Other current assets 1,557 1,582 (25) -2%

Total current assets 76,146 46,060 30,086 65%

Trade and other receivables 1,115 1,136 (21) -2%

Property, plant and equipment 2,331 1,908 423 22%

Other non-current assets 3,881 4,898 (1,017) -21%

Total non-current assets 7,327 7,942 (615) -8%

Total assets 83,473 54,002 29,471 55% Trade and other payables 4,002 5,499 (1,497) -27%

Borrowings 50 60 (10) -17%

Tax liabilities 1,538 338 1,200 355%

Provisions 1,939 1,773 166 9%

Deferred revenue 25,390 29,727 (4,337) -15%

Total current liabilities 32,919 37,397 (4,478) -12%

Borrowings 67 88 (21) -24%

Provisions 2,024 2,829 (805) -28%

Deferred revenue 4,844 5,981 (1,137) -19%

Other liabilities 180 116 64 55%

Total non-current liabilities 7,115 9,014 (1,899) -21%

Total liabilities 40,034 46,411 (6,377) -14% Net assets 43,439 7,591 35,848 472%

Contributed equity and reserves 131,280 94,268 37,012 39%

Accumulated losses (87,841) (86,677) (1,164) 1%

Total equity 43,439 7,591 35,848 472%

- Successful capital raising

- Operating Cash Flow up 16% to $7.4m

- Minimal borrowings - Debt/Equity less than 1%

Capital

Raising

16

Altium’s Cash Flow

0.00

FY12

Dividends paid/declared

2.00

4.00

6.00

8.00

10.00

12.00

14.00

FY13 FY14 FY15

Interim

Final

H1FY15 H1FY14 Var $ '000 $ '000 $ '000 %

Cash flows from operating activities

Receipts from customers 37,032 35,867 1,165 3%

Payments to suppliers and employees (29,499) (29,052) (447) 2%

Net Interest paid 228 54 174 322%

Net income taxes paid (408) (553) 145 -26%

Operating Cash Flow 7,353 6,316 1,037 16%

Capital Expenditure

Payments for property, plant and

equipment (1,195) (407) (788) 194%

Free Cash Flow 6,158 5,909 249 4%

Cash flows from financing activities

Proceeds from exercise of options - 2,562 (2,562)

Proceeds from issue of shares 39,966 - 39,966

Dividends paid (7,941) (8,594) 653

Repayment of borrowings (38) (105) 67

Subtotal 38,145 (228) 38,373 > 100%

Effects of exchange rate changes (1,140) 17 (1,157) > 100%

Increase in cash and cash equivalents 37,005 (211) 37,216 > 100%

Steady increase in dividend payments to shareholders

16.00

17

Half Year Results Key Metrics

Total Revenue (excl. Interest) 37.6 32.2 17%

Reported Expenses 27.5 26.3 5% (excl. D&A & Interest)

EBITDA 10.1 5.9 69%

Depreciation 0.4 0.5

Amortisation - 0.3

EBIT 9.6 5.2 84%

Income tax expense 3.0 1.9

Net Interest 0.2 0.02

NPAT 6.8 3.4 >100%

USD millions H1FY15 Change % H1FY14

EPS 5.63 3.11 81%

Dividends (AU cents) 8.00 4.00 100%

Key Margin Analysis

EBIT Margin 26% 16% EBITDA Margin 27% 18%

Balance Sheet (USD millions)

Net Assets 43.5 7.6 >100%

Cash & Cash Equivalents 59.1 22.0 >100%

Operating cash flows 7.4 6.3 16%

H1FY15 Change % H1FY14

Net Profit Before Tax Margin 26% 16% Net Profit After Tax Margin 18% 10%

Debt/Equity 0.3% 1.9%

Return on Equity 27% 3%

Agenda

Half Year 2015 Financial Performance & Metrics 2

3

1

Market Opportunity & Growth Strategy

Appendix: Company Overview & Long –Term Outlook

Company Highlights & Key Focus Areas for the Remainder of FY15

4

19

Rise of Smart Connected Devices

Information

is Indexed Search & Discovery

1990’s Web 1.0

Social Networking

2000’s Web 2.0 People are Networked

Electronics puts

Internet into Things Internet of Things

2010’s Web 3.0

20

Printed Circuit Boards Central to Electronics

At the Heart of All Intelligent Systems Are Electronics and Printed Circuit Boards

21

Increasing Demand in Electronics is the Main Growth Driver

75% Electronic Value (Hines, 2012)

Hybrid/Electric

40% Electronic Value (Hines, 2012)

Traditional Vehicle

60%

By 2017

22

Use of Smart Electronics in Everyday Things

The Nest thermostat

learns the temps you

like, turns itself down

when you're away,

and has remote

control through Wi-Fi

Complex Design with Multiple

Printed Circuit Boards

Designing Smart Connected Products

Designing Smart Connected Products

Cloud System Engineering

Cloud application development and infrastructure

management

Development of Control Systems in

Electromechanical devices

Embedded System Engineering

Creation of high-performance electronic

hardware with complex form factor

Electronics Engineering

Mechanical Engineering Designing complex objects with sophisticated

electromechanical behaviour

Electrical Engineering Development of wire harness and electrical systems

in Electromechanical devices

Cloud

Computing

Multidisciplinary Engineering is Driving Market Convergence

24

Altium - the Next Generation PCB Design Software Company

Altium is the only pure-play PCB design software company in the world

With over 30 years of continuous design in PCB software Altium is best in class

Our platform base provides agility to partner with other engineering design tools

We support deep integration of our tools to other engineering disciplines (including mechanical CAD)

We support and work with specialised go-to-market plays

25

Altium’s High Level Strategy

Build Momentum by

Focusing on Core

Strengths

Expand Market Reach

through Partnership

Grow Capability Through Acquisition

Acquisition

26

Growing Capability Through Acquisition & Partnership

ALTI

UM

(T

ransactional M

odel)

TASK

ING

(E

nte

rprise M

odel)

Acquisition Strategy

Technology Acquisition

Bra

nd A

cquis

itio

n

Altium will Grow by Acquiring/Partnering with Brands that are

Associated with the Design of PCB and Smart Devices

MC

AD

(Tra

nsaction M

odel

- In

direct)

Farn

ell

(Cata

logue

-based

Model)

New

Part

ners

Partnership Strategy

27

Altium’s Core Strengths & Enduring Competitive Advantages

Established

Brand in Most

Countries in the

World

Complex Software

IP Consisting of

Millions of Lines of

Code

Value-based Sales with Strong

Operating Leverage

Transactional Sales

Altium is the Only

“Pure-Play” PCB

Company in the

World

Altium has a

Strong

Operating

Leverage

Altium Enjoys a High Level of

Customer Loyalty

Customer Stickiness

Core Strengths Competitive Advantages

Expanding Margin

Sustainable Business

Agenda

Half Year 2015 Financial Performance & Metrics 2

4

1

Market Opportunity & Growth Strategy

Appendix: Company Overview & Long –Term Outlook

Company Highlights & Key Focus Areas for the Remainder of FY15

3

29

30 Years of Continuous R&D in PCB Design Software

2010

1985

1991

1999

The company was founded by

creating the first version of Altium

Designer, Protel PCB

Altium Launches Protel for

Windows - World's first Microsoft Windows-based PCB design system

Altium Successfully

completes an IPO on Australian Stock Exchange

2006

Now

Altium launches Altium

Designer 6, the world’s

first Native 3D PCB design software

Altium launches Altium Designer 13 introducing DXP 2.0, its next

generation integration platform

opening up Altium Designer to

third-party developers

Altium launches PCBWorks

introducing a specialized version

of its PCB Design Software for

SolidWorks

30

Printed Circuit Board Design and Manufacturing Process

Bare Board Layout Film Assembled Board Circuit Diagram

Fabrication Layout Assembly Design Capture

31

Altium Products

Electronic

Design Concept

Design Capture & Verification

Embedded Software

Development

FPGA Prototype

Printed Circuit Board Layout

Manufacturing

Altium Vault Design Data Management &

Collaboration Software

Tasking Embedded Software

Development Tools

3D Printed Circuit Board Design Software

32

Diversity of Applications

Automotive

Electronics &

High-Tech

Life Sciences Aerospace &

Defence

Consumer-

Electronics

Semiconductors Industrial Controls

Automation

Research &

Education

Mobile Devices &

Communications

Computers

33

High Profile Customers

Automotive

Electronics & High-Tech

Life Sciences Aerospace & Defence Consumer- Electronics

Semiconductors Industrial Controls Research & Education

Mobile Devices

Computers

34

Global Reach

Main Operations Centres San Diego, Karlsruhe, Shanghai

Research & Development Centres San Diego, Ukraine, Netherlands, Shanghai

Sales and Support Centres San Diego, Boston, Karlsruhe, Shanghai, Sydney

Network of channel partners, with over 50 authorized

Value-Added-Resellers

Global HQ San Diego

Corporate & Registered Office ASX Listing Sydney

Regional HQ Shanghai

Regional HQ Karlsruhe

35

PCB Design Software Market Segmentation & Size

High-end

Low-end

Total Market size: $800M Currently Addressable: $500M High-end

57% of market Value

Large engineering teams

designing complex products

Low-end 7% of market

value. Simple

designs carried

out by multi-

skilled engineers

Mainstream 36% of market value

Moderate to high design

complexity, carried out by

small teams of specialist

engineers

Less than 2k

Price Range

20k+ Price Range

36

Industry Consolidation & Competitive Landscape

PADs

Allegro Cadence

ECAD (Cadence Allegro)

Cooper & Chan

OrCAD

CADStar

Daisy

Cadnetix

Veribest (Intergraph)

Expedition Mentor Graphics Mentor Graphics (Board Station)

Altium Designer Altium PCAD

Altium (Protel)

Accel Technology (Tango)

PADs (Mentor Graphics)

OrCAD (Cadence)

CADStar (Zuken)

Main

str

eam

Low

-end

CADSoft (Eagle) Eagle

CR-5000/8000 Zuken

Racal-Redac

Zuken (CR-2000)

National Instruments

(Electronic Workbench) Electronic Workbench

Pulsonix

Hig

h-e

nd

1960’s & 1970’s 1980’s 1990’s 2000’s 2010’s

37

PCB Design Software - Global Market Share

Printed Circuit Board Estimated Market Share

(by Revenue)

Source: PCB Market Trends 2014 – Gary Smith EDA

38

Long-Term Outlook

The rise of smart connected devices is creating new opportunities for PCB

Expect to see continuing growth in revenue (licences & subscription)

Will maintain or improve operating leverage

The impact of Altium’s higher-end product release in FY15 is anticipated to be felt during FY16 and beyond

Altium’s aspirational goal is to

achieve $100 million in

revenue by FY17