level 6, tower b announcement authorised by: …...2020/02/17 · samuel weiss chairman altium...

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Altium Limited ASX Announcement

Altium Half – Year Investor Presentation Sydney, Australia - 17 February 2020 – Attached are the Altium Half–Year Investor presentation

slides to accompany investor presentations given 17-20 February 2020.

Investors are reminded that an open investor call will be held this evening commencing at 5pm

AEDT.

Details for the call are provided below.

Date: 17 February at 5pm AEDT

Dial in Numbers:

Australia (toll free) 1800 148 258 Australia (mobile) 1300 157 230 New Zealand 0800 667 018 Hong Kong 800 965 808 USA 18 665862813 Canada 18 668374489 United Kingdom 08 000569662 Germany 08 001 814 827 China 108 006 110 127

International Dial in: +61 280385271

Attendee Passcode: 8878024

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 (Australia based)

Ph: +61 413 528 120

17 February 2020

Announcement Authorised by:

Samuel Weiss

Chairman

Altium Limited

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

ACN 009 568 772

Level 6, Tower B The Zenith 821 Pacific Highway Chatswood NSW 2067 Australia Investor Relations Contact Details:

Kim Besharati VP Investor Relations & Corporate Affairs

Phone: +1 858 864 1513 Mobile: +1 760 828 3567

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ALTIUM HALF-YEARINVESTOR PRESENTATION

Strong First Half FY20 Performance

19% Revenue Growth

23% Profit Growth Before Tax

Aram Mirkazemi CEO

Joe Bedewi CFO

Kim Besharati SVP IR

Martin Ive SVP Finance

17– 20 February 2020

SydneyFor

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2

• 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.

• Altium, Altium Designer, Altium Vault, Ciiva, Circuitmaker, Circuistudio,

Octopart, PCBWorks, Protel and Tasking, and their respective logos, are

trademarks or registered trademarks of Altium Limited, or its subsidiaries.

All other registered or unregistered trademarks mentioned in this

presentation are the property of their respective owners, and no

trademark rights to the same are claimed

Disclaimer

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.

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Agenda

2020 Half Year Financial Performance & Metrics2

Driving Forces, Market Opportunity & Industry Transformation

Appendix: Company Overview

Company Highlights & Significant Achievements1

3

4

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19%H1

4

Altium’s FY20 Half Year Financial Highlights

$150M

$90M

$60M

$30M

Revenue

Revenue growth

$120M

$0M

EBITDA/ EBITDA Margin (prior years revised for comparative

purposes to include the estimated impact

of the AASB16 Leases)

$180M

Strong profit before tax growth of 23%

Strong revenue growth of 19%

16% increase in subscriber

base to 46,693

19% increase in Altium Designer seats

with 4,205 new licenses sold

Record EBITDA Margin of 39.7% (37%

excluding impact of the AASB16 Leases)

$140.2M

2015H1 FY

$37.6M

16%H1

$80.2M

2016H1 FY

$42.6M

13%H1

$93.6M

2017H1 FY

$48.7M

14%H1

$110.9M

30%H1

$63.2M

29.4% 27.5%28.9%

32.7%

24%H1

2019H1 FY

2018H1 FY

$171.8M

$92.8M

39.7%

2020H1 FY

р

$78.1M

38.8%

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Driving Performance from a Position of Financial Strength

4,205Altium Designer Seats Sold

(Up 19%)

$92.8m Revenue (Up 19%)

$80.7mCash

$31.8mPBT

(Up 23%)

Debt

Free

A$5.5bMarket Cap

39.7%EBITDA Margin(Up from 38.8%)

46,693Subscribers

(Up 16%)

$36.8m

EBITDA(Up 22%)

$92.6m Sales (Up 22%)

17.65c

EPS (Down 2%)

59% Recurring Revenue

AU20c

Dividend(Up 25%)

20%5 Year Revenue CAGR

$31.5m

EBIT(Up 23%)

$56.0mExpenses(Up 13%)

803

Employees

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FY20 Half Year Significant Achievements

China delivered record revenue growth of 27% and continues to scale

Released Altium Designer 20 with a range of new capabilities targeting

advanced design and complex projects

All core business segments delivered double-digit revenue growth

Released Altium’s new cloud platform Altium 365 and moving early

customers onto the platform

Record growth in new Altium Designer seats of 19% and growth in

subscriber base of 16% to 46,693 subscribers

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Launch of Altium 365 and Pathways to Large-Scale Adoption

Altium 365 – Basic

(Available from April 2020)

Free for persistent light-weight agile

collaboration and design-sharing

Altium 365 – Standard

(Available from April 2020)

Available only to Altium subscribers for

collaboration and data management

Basic Standard

ProViewer

Altium 365 – Embeddable Viewer

(Made Available in Dec 2019)

A free embeddable version of Altium 365 for non-

persistent light-weight agile collaboration that can

be hosted on any website

Altium 365 – Pro

(Made Available in Oct 2019)

For hosting design data and structured-

collaboration at a higher-subscription rate.

Over 90 companies have adopted Pro

16k Views14.5k Views

4.1k Views

2019 - Dec 2020 - Jan 2020 - Feb

Arduino

Seeed Studio

Toradex

Other

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5M

3M

1M

Strategic Investment Under the “Rule of 50”

4M

2M

6M

H1 FY20H2 FY19

7M

H1 FY19

Dassault Systèmes

3DExperienceBrand MarketingAltium365

Octopart – Parts

Data Platform

10%

72%

15%

9%

67%

17%

ч

Under the “Rule of 50”, Altium is making strategic

investments for long-term growth to support its drive for

transformation through dominance. Currently, these

include:

• Altium 365 - Our Cloud Platform, Altium 365 which

includes product development and the productization of

our subscription business.

• Octopart Parts Data Platform – this includes building a

new platform for all data related Parts and CAD model

to support transformation.

• Brand Marketing – this includes increasing Altium

Brand awareness to expand reach across all markets

for dominance.

• Dassault Systèmes 3DExperience - this includes

product development and relationship management.

7%

14%

61%

18%

30%H1

NAH1

$3.5M

43%H2

$6.5M

$5.0M

3%

7%

8

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From Pursuit of Leadership to Transformation through Dominance

2012 - 2014 2015 – 2017 2021 - 20252018 - 2020

$100MRevenue

35,000 Subscribers

$200M Revenue

50,000Subscribers

$500MRevenue

100,000Subscribers

Dominating & Transforming...LeadingPerformingRebuilding

$100M

$50M

$150M

$200M

$18M

25.9%

$6M

9.5%

$33M

30.0%$27M

29.3%$23M

28.3%

$63M

36.5%

$45M

32.0%

$250M

$71M

15%$62M

12%

$111M

18%

$94M

17%

$80M

13%

$172M

23%

$140M

26%

$300M

• Successful Capital

Raise of A$44M on

ASX

• Set Revenue Target of

$100M for FY2017

• Surpass $100M

Revenue Target Set

in 2014

• Set Revenue Target

of $200M for FY2020

• Set Revenue

Target of $500M

for FY2025

Revenue

Rev. Growth %

EBITDA

EBITDA Margin %

Electronic Design

Electronic Parts &

Supply chain

* The target revenue of $500M may include 5-10% from future

acquisitions

100,000Subscribers

$500M *Revenue

10-20% 10-20%

60-80%

Electronic Manufacturing

& Embedded Software

$0.3M

0.5%

$55M

14%

• Altium Acquires

Octopart the #1

Electronic Parts

Search Engine

9

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Agenda





3

4

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Revenue Sources

Altiu

m D

esig

ner

Subscrip

tion (in

clu

des

term

-based lic

enses)

20

60

80

$32.9

(35.5%)

US Millions

$29.6

(31.9%)

$9.0

(9.7%)

$4.8

(5.2%)

$1.1

(1.2%)

$2.1

(2.3%)$4.6

(5.0%)

$2.0

(2.2%)

To

tal R

eve

nu

e

$92.8

(100%)

Recurring

Revenue

$54.5

(58.7%)

Transactional

Revenue

$38.3

(41.3%)

Nexu

s

$6.7

(7.2%)

100

11

Altiu

m

Perp

etu

al L

icenses (N

ew

and U

pgra

des)

Serv

ices

TA

SK

ING

Lic

enses

Oth

er N

on-re

currin

g

TA

SK

ING

Term

-based L

icenses

and M

ain

tenance

Octo

part

Oth

er R

ecurrin

g

40

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$12m

Boards and Systems Revenue by Region

12

BSD - Americas5 Yr Revenue CAGR: 13%

5 Yr Recurring CAGR: 13%

$10m

$20m

$50m

2015 2016 2020

H1

H1 Revenue: 11%

$30m

$40m

BSD – EMEA USD5 Yr Revenue CAGR: 14%


H1 Revenue: 8%

$10m

$20m

BSD – China5 Yr Revenue CAGR: 22%


$4m

$8m

H1 Revenue: 27%

$12m

$16m

$20m

BSD – ROW5 Yr Revenue CAGR: 10%


H1 Revenue: 4%

$2m

$4m

$6m

$8m

Revenue

Recurring

H1 H1 FY

2015 2016 2017 2020

H1H1 FY H1 FY

2016 2017 2018

H1 FY H1 FY H1 FY

2016 2017 2018 2020

H1H1 FY H1 FY H1 FY

2017

H1 FY

2018

H1 FY

2020

H1

2019

H1 FY

2019

H1 FY

$10m

2015

H1 FY

2015

H1 FY

2018

H1 FY H1 FY

2019

H1 FY

$40m

$30m

2019

H1 FY

H1 Recurring: 9%

H1 Recurring: 41% H1 Recurring: 17%

H1 Recurring: 9%

14.2m16.8m

17.5m21.1m

25.8m23.3m

8.7m

FY

9.7m10.5m

12.9m 14.9m 16.1m

4.7m4.0m

5.1m6.6m

12.5m

9.9m

1.5m 1.2m 1.6m 1.7m2.4m

11.1m 10.7m 12.2m

17.2m

21.4m

19.9m

6.8m 6.3m 7.0m9.7m

11.7m12.8m

3.5m 3.6m 3.8m

5.2m 5.6m5.4m

1.9m 1.6m 1.8m

2.6m 2.4m2.8m

1.1m

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$1m

Boards and Systems Revenue Total & NEXUS

BSD – Total5 Yr Revenue CAGR: 14%

$20m

$40m

$60m

$80m

$100m

RevenueRecurring

$120m

$140m

NEXUS

13

2015 2016 2020

H1H1 FY H1 FY

2017

H1 FY

2018

H1 FY

2019

H1 FY

33.4m35.1m 38.6m

50.1m

65.4m

58.4m

18.6m

20.5m26.8m

34.0m30.6m

18.9m

H1 Revenue: 12%

H1 Recurring: 11%

$2m

$3m

$4m

$5m

$6m

$7m

$8m

2015 2016 2020

H1H1 FY H1 FY

2017

H1 FY

2018

H1 FY

2019

H1 FY

0.1m0.6m

1.4m

2.0m

7.0m

2.4m

0.5m

1.3m1.8m

6.7m

2.2m

0.1m

5 Yr Revenue CAGR: 128%H1 Revenue: 197%

H1 Recurring: 203%5 Yr Recurring CAGR: 12% 5 Yr Recurring CAGR: 143%

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Octopart and TASKING Revenue

TASKING

$3m

$6m

$12m

$9m

$18m

$15m

$21m

14

RevenueRecurring

Octopart 5 Yr Revenue CAGR: 38%H1 Revenue : 2%

$3m

$6m

$12m

$9m

$18m

$15m

$21m

1.8m2.1m

3.5m

4.9m

8.9m9.0m

2015 2016 2020

H1H1 FY H1 FY

2017

H1 FY

2018

H1 FY

2019

H1 FY

2015 2016 2020

H1H1 FY H1 FY

2017

H1 FY

2018

H1 FY

2019

H1 FY

3.9m

5.4m 5.2m

6.3m

9.7m

8.4m

1.7m 2.0m2.5m

4.8m

3.3m

1.8m

5 Yr Revenue CAGR: 20%H1 Revenue: 15%

H1 Recurring: 47% 5 Yr Recurring CAGR: 22%

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Boards and Systems – Underlying Metrics

Altium Designer New Seats Sold Subscription Pool

Americas EMEA China

1,000

2,000

3,000

1,036 (+188)

1,114 (+173)

1,553 (+270)

4,205

(+661)

2015 2016 2017 2020

H1

2018

H1 FYH1 FYH1 FYH1 FY

5,520

(+339)5,181

(+863)

4,318

4,000

5,000

6,000

6,321

(+801)

Rest of World

502 (+30)

1,756

2,162

(+406)

2,178

(+16)

2019

H1 FY

8,015

(+1,694)

2,651

(+473)

3,544

(+893)

7,000

8,000

Americas EMEA

5,387

(+919)

25,000

15,000

10,000

5,000

20,000

30,000

17,859

(+2,383)29,922

(+2,742)35,000

33,049

(+3,127)

4,738

(+1,046)

China Rest of World

40,000

45,000

50,000

18,709

(+2,109)

46,693

(+6,457)

27,180

36,781

(+3,732)

40,236

(+3,455)

ч2015 2016 2017 2020

H1

2018

H1 FYH1 FYH1 FYH1 FY

2019

H1 FY

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Altium’s Subscription Pool

Growth pool ~ Developed Countries

88.4% renewal rate (FY19 - 86.5%) Constant pool ~ Developing Countries

36.6% renewal rate (FY19 - 33.3%)

16

20,000

10,000

5,000

0

15,000

25,000

30,000

35,000

40,000

+2,884+1,153 -2,125

43,698

June 2019 December 2019

Rejo

ins

& U

pg

rad

es

Lap

sed

New

Su

bsc

rip

tio

n P

oo

l S

ize

45,000

50,000+2,248 +752 -1,917

46,693

Rejo

ins

& U

pg

rad

es

Lap

sed

New

7,162

36,536

8,231

38,462

All numbers include term-based licenses

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Operating Expenses

Margin

Operating expenses as a breakdown of revenue

20m

40m

60m

11.0

80m

100m

Sales & Marketing

7.2

13.3

6.1

11.7

9.3

13.6

6.8

14.1

11.3

15.0

6.5

20.7

11.4

19.9

9.3

Research & Development

30.3

15.4

22.0

10.1

One off Costs incl. AcquisitionsGeneral & Administration

2015 2016 2018

H1H1 H1

2017

H1 H1

2019

36.8

16.7

27.7

13.5

H1

2020

Operating expenses as a percentage of revenue

20%

40%

60%

29.4%

80%

100%

19.1%

35.3%

16.1%

27.5%

21.7%

31.9%

16.1%

28.9%

23.2%

30.6%

13.4%

32.7%

18.0%

31.5%

14.7%

38.8%

19.7%

28.2%

12.9%

2015 2016 2018

H1H1 H1

2017

H1 H1

2019

39.7%

18.0%

29.8%

14.6%

H1

2020

92.8

78.1

63.2

48.7

42.6

37.6

-1.9

1.2 1.91.9 0.3

-2.1%0.4%3.0%3.9%2.8%

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Earnings Per Share

• The tax expense has been historically low due

to the impact of the deferred tax asset arising

on relocation of Altium’s core business assets

to the USA. The deferred tax asset is now fully

recognized bringing tax expense closer to the

US actual tax rate, reducing NPAT and

impacting EPS.

• Pre-tax EPS has continued to grow at a steady

rate.

5

10

20

15

30

25

5.63

8.13

7.12

7.58 7.64

8.36

US

D c

en

ts

11.48

12.72

18.00

19.78

17.65

24.29

EPS Pre tax EPS

H1 FY15 H1 FY16 H1 FY17 H1 FY18 H1 FY19 H1 FY20

27% Effective

Tax Rate

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Balance Sheet

FY15 FY16 FY19FY17

$20m

$40m

$60m

$0

61.9

38.1

44.3

52.5

Dec-19 Jun-19 Dec-18 Jun-18

US$ '000 US$ '000 US$ '000 US$ '000

Cash and cash equivalents 80,666 80,531 58,025 52,459

Trade and other receivables 45,520 45,833 36,986 38,799

Other current assets 7,514 5,108 4,771 4,171

Total current assets 133,700 131,472 99,782 95,429

Trade and other receivables 2,742 2,285 1,370 1,952

Property, plant and equipment 19,683 7,762 6,653 5,712

Intangible assets 50,265 51,534 47,655 49,068

Other non-current assets 83,041 84,873 81,489 82,120

Total non-current assets 155,731 146,454 137,167 138,852

Total assets 289,431 277,926 236,949 234,281

Trade and other payables 8,679 16,278 7,834 12,147

Tax liabilities 6,096 5,705 2,296 772

Provisions 3,053 2,109 1,957 6,784

Lease liabilities 4,932 - - -

Deferred revenue 45,883 48,277 42,172 43,989

Total current liabilities 68,643 72,369 54,259 63,692

Deferred tax 9,256 5,833 5,266 5,566

Provisions 3,525 6,407 4,038 3,974

Deferred revenue 7,523 6,875 5,318 6,035

Other liabilities 7,803 1,884 1,968 2,098

Total non-current liabilities 28,107 20,999 16,590 17,673

Total liabilities 96,750 93,368 70,849 81,365

Net assets 192,681 184,558 166,100 152,916

Contributed equity and reserves 126,851 126,058 141,329 138,260

Accumulated profits (losses) 65,830 58,500 24,771 14,656

Total equity 192,681 184,558 166,100 152,916

FY18

80.5

$80m

$100m

Cash and cash equivalents

H1 FY20

80.7

19

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Cash Flow

Dividends paid/declared

FY15 FY16

5AUD¢

10AUD¢

15AUD¢

20AUD¢

25AUD¢

0

8

8

10

10

14

Final

Interim

H1 FY20 H1 FY19 H1 FY18 H1 FY17

US$ '000 US$ '000 US$ '000 US$ '000

Cash flows from operating activities

Receipts from customers 95,325 81,601 64,501 54,397

Payments to suppliers and employees (71,440) (54,234) (48,965) (39,268)

Payments for expenses relating to acquisitions - - (347) (72)

Net interest received /(paid) 592 279 32 (21)

Net income taxes paid (3,686) (831) (348) (1,320)

Operating cash flow 20,791 26,815 14,873 13,716

Capital Expenditure

Payments for property, plant and equipment (1,733) (2,481) (1,592) (2,548)

Payments for intangibles (262) (13) (231) -

Free Cash Flow 18,796 24,321 13,050 11,168

Cash flows from investing activities

Payments for purchase of subsidiary, net of cash acquired 0 0 (2,799) 0

Payments on contingent and deferred considerations (3) (5,471) (6,249) (2,939)

Cash flows from financing activities

Proceeds from issue of shares - - - -

Dividends paid (16,050) (13,327) (12,534) (9,830)

Repayment of borrowings (2,720) (3) (6) (28)

Increase/(decrease) in cash and cash equivalents 23 5,520 (8,538) (1,629)

Effects of exchange rate changes 112 46 290 (162)

Total increase/(decrease) in cash and cash equivalents 135 5,566 (8,248) (1,791)

FY17 FY18

12

1113

30AUD¢

18

16

35AUD¢

FY19

20

H1 FY2020

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Half Year Results Key Metrics

USD millionsH1

FY20

H1*

FY19

+/-

%

H1*

FY18

H1*

FY17

Revenue (excl. interest) 92.8 78.1 19% 63.2 48.7

Reported expenses 58.5 49.8 17% 44.3 36.1

EBITDA 36.8 28.3 30% 19.0 12.5

Depreciation and

amortization5.3 2.9 83% 2.5 1.7

EBIT 31.5 25.4 24% 16.4 10.8

Net interest 0.3 0.3 N/A 0.0 0.0

Profit before income tax 31.8 25.7 24% 16.5 10.8

Income tax expense 8.7 2.3 278% 1.6 0.9

Profit after income tax 23.1 23.4 -1% 14.9 9.9

H1

FY20

H1*

FY19

H1*

FY18

H1*

FY17

EPS 17.65 18.00 11.48 7.64

Dividends (AU cents) 20 16 13 11

Key Margin Analysis

EBITDA margin as reported

EBITDA margin including the

effect of AASB16 Leases

Net profit before tax margin

Net profit after tax margin

Cash tax rate

Effective tax rate

39.7%

39.7%

34%

25%

11.6%

27.4%

36.3%

38.8%

33%

30%

3.2%

8.9%

30.0%

32.7%

26%

24%

2.1%

9.7%

25.8%

28.9%

22%

20%

12.2%

8.6%

Balance Sheet (USD millions)

Cash and equivalents

Net assets80.7

192.7

58.0

166.1

36.0

141.8

36.3

131.6

Operating cash flows20.8 26.8 14.9 13.7

* Historical data is as reported and has not been revised for AASB16 Leases unless noted.

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Rise of Smart Connected Devices

Internet of Things & Artificial Intelligence are driving the

proliferation of electronics

Web 1.0

1990’sInformation

is indexed

Web 2.0

2000’sPeople are

networked

Web 3.0

2010’s

Electronics puts

Internet into

things

Web 4.0

2020’s

Electronics

binds Infotech

to Biotech

Social Networking

Search & Discovery

Internet of Things

Artificial Intelligence

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Electronics at the Heart of All Intelligent Systems

Printed Circuit Boards are central to the design & realization of electronics

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Electronics Industry is in Need of Transformation & Ripe for Disruption

Unification of Data Model and Digital Continuity

is Required to Manage Design Complexity

Large Scale Management of Production Risk will

Result in Unimagined Productivity & Reward

Concept

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Electronic Parts

Distributors

Semiconductor

Manufacturers

Electronic Parts

Manufacturers

Search & Analytics

Content Aggregators

Electronic Parts Supply ChainEstimated size: $600 - $800Bn

The Electronics Industry Value Chain is Disconnected

PLM

Vendors

Electronic

Manufacturing

Services (EMS)


Equipment Vendors

Electronic CAD

Vendors

PCB Assemblers

Simulation

Vendors

PCB Fabricators

Electronic Testing

Equipment Vendors

IC Design

Tools

Vendors

Altium 365 will connect the Electronics Industry fragmented value chains to

drive productivity and manage production risk

$2 TrillionEstimated Industry Size

Electronic Design Estimated size: $2 - $5Bn


Estimated size: $1,000 - $1,500Bn

Electronic

ManufacturingElectronic

Parts

Supply

Chain

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Altium must target 100,000 active subscribers by 2025 to compel key industry

stakeholders to support its agenda to transform electronic design and its realization

LEAD

Market

Leadership

UNIFY

Market

Dominance

TRANSFORM

Industry

Transformation

1 2 3

Industry Transformation Through Market Dominance

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Executing in Concert & to a Higher Standard on Three Fronts

ProductMaximum Power, Productivity and Coverage

(Challenge of Complexity)

CloudHigher Levels of Service and

Customer Engagement(Challenge of Experience)

ChannelExtreme Reach and Capacity

(Challenge of Scale)

Leadership

Product & Channel Must

be in Lockstep

Product & Cloud

Must Work as One

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Phases in Pursuit of Leadership, Dominance & Transformation

TRANSFOR

M

LEAD UNIFY

Industry

Transformation

(Cloud)

Market

Dominance

(Channel)

Market

Leadership

(Product)

Manufacturing PCB

on Altium 365Industry-wide Collaboration

Hosting Design Data

on Altium 365Structured Collaboration

Driving Innovation &

Closing Capability

Gaps with High-End

Establishing

Yearly Innovation

Cycles

Extending Reach

and Going Direct

in Key Markets

including China

Building High

Performing Direct

Sales Force

Building Altium

Cloud Platform

Altium 365

Building High

Performing R&D

In-App Engagement

Man-Out-Of-the-Loop

Innovating as

Market Leader &

Extending Lead

Scaling Direct

Sales for

Dominance

Sharing Design Files

on Altium 365Light-weight Collaboration

Current Phase$100MRevenue

35,000 Subscribers

$200MRevenue

50,000 Subscribers

$500MRevenue

100,000 Subscribers

292012 - 2014 2015 – 2017 2021 - 20252018 - 2020

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Guidance Update and Long-Term Outlook

Altium maintains its full year revenue and margin guidance between US$205 million to US$215

million in revenue and an EBITDA margin guidance of 39% to 41% (on a reported basis) and

37% to 38% (excluding the impact of AASB16 Leases)

Due to the coronavirus in China and Octopart having underperformed during the first half, the

full year is likely to land at the lower end of revenue and margin guidance

Altium is moving confidently towards its 2025 targets for market dominance of US$500 million

in revenue and 100,000 subscribers, expecting to reach the half way mark of 50,000

subscribers by end of FY20

Altium will adhere to the Rule of 50 (% Revenue growth + EBITDA margin % ≥ 50) and invest

to achieve transformation through dominance

Altium will continue to pursue partnership and M&A opportunities to support its long-term vision

of creating a product design and realization platform that is centered around electronics

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Altium Products

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Diversity of Application

Research &

Education

Aerospace &

Defense

Life Sciences Mobile Devices &

CommunicationsConsumer –

Electronics

Electronics &

High-Tech

Automotive

Industrial Controls

AutomationComputers Semiconductors

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High Profile Customers

Automotive

Electronics & High-Tech

Life SciencesAerospace & Defence Consumer- Electronics

SemiconductorsIndustrial ControlsResearch & Education

Mobile Devices

Computers

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Global Reach

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Altium’s High Velocity, Highly Profitable Direct Sales Force

Altium connects to users at all levels within an organization providing a user experience that is unique within the industry

Focus on the USER and the

Customers will follow

User Focus

Go Direct Everywhere;

Altium’s touch matters

Altium’s Touch

Sell what you have – more

will be there tomorrow

Always Improving

Superior product that is

easy to use and affordable

Great Product

Every Customer, Every

Seat, Every $ Counts

Everyone Counts

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Altium Values

“Growing Revenue Strongly” and

“Expanding Profit Margin”

“Regular Product Releases” and

“Delivering Next Generation

Products”

“High Volume Selling” and

“Sophisticated Value Proposition”

Sales

PeopleFinance

Product

0

4

“the Genius of AND”

“Diversity in Thinking” and

“Aligned in Action and Purpose”

Diversity in Thoughts

Perseverance

Adaptability Agility

Ingenuity

Transparency

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Guidance Update and Long-Term Outlook

Altium maintains its full year revenue and margin guidance between US$205 million to US$215

million in revenue and an EBITDA margin guidance of 39% to 41% (on a reported basis) and

37% to 38% (excluding the impact of AASB16 Leases)

Due to the coronavirus in China and Octopart having underperformed during the first half, the

full year is likely to land at the lower end of revenue and margin guidance

Altium is moving confidently towards its 2025 targets for market dominance of US$500 million

in revenue and 100,000 subscribers, expecting to reach the half way mark of 50,000

subscribers by end of FY20

Altium will adhere to the Rule of 50 (% Revenue growth + EBITDA margin % ≥ 50) and invest

to achieve transformation through dominance

Altium will continue to pursue partnership and M&A opportunities to support its long-term vision

of creating a product design and realization platform that is centered around electronics

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level 6, tower b announcement authorised by: …...2020/02/17 · samuel weiss chairman altium...

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