Altium um Technol hnolog ogy y & Busines ess s St Strat - - PowerPoint PPT Presentation

18 November 2016 Sydney

Altium um Technol hnolog

• gy

y & Busines ess s St Strat ategy y Presen enta tation ion

Altium Enabling Innovation in the Age of IOT

Drivin ing g Innovation ation & Capita italiz lizin ing g on Op Opportun rtunitie ties s in the Ag Age of IOT OT

Aram Mirkazemi – Chief Executive Officer

Elec ectro troni nics cs at the Heart t of Enablin ing g Innova vati tion

• n

3

The he Web b and nd the he Wave aves of Inn nnov

• vati

ation

• n…

The three waves form the three axes of innovation around which all future products will pivot

4

Exploration

(Discovery & Invention)

Innova vati tion

• n

(Pioneering & Development)

Adoption

(Accessibility & Refinement)

Inn nnov

• vati

ation

• n in t

n the he Age ge of Internet ernet of Thi hings ngs

Modelling, digitalizing and integrating all objects and processes associated with the creation, adoption & evolution of smart products is critical for inc ncre reasing g the spe peed d of inno nnovatio tion

5

The Multi-Disci Discipli plinary ry Cha hallenges lenges of Inn nnov

• vati

ation

• n in

n the Age of IoT

Cloud

• ud Syste

tem

Cloud application development and Infrastructure management

Development of Control Systems in Electromechanical devices

Embe bedd dded ed Softwa ware re

Creation of high-performance electronic hardware with complex form factor

Elec ectro troni nics cs Mechanica nical

Designing complex objects with sophisticated electromechanical behaviour

Electri ctrical cal Wirin ing

Development of wire harness and electrical systems in Electromechanical devices

ECAD

Outdated practices related to electronic design are at the heart of multi-disciplinary challenges in designing smart products

Transfo format mation ion of the he EDA A Ind ndustry try and nd Opportu

• rtunit

ities ies for r Altium m to Lead ad... ...

6

The rise of smart connected devices is driving a deep transformation in the EDA industry with the Board & Systems Design going mainstream while Chip Design is becoming highly specialized

Board & Systems Design

Ena nabling ling Inn nnova

• vati

tion

• n in

n Diff ffere erent nt Segme gments ts

• f the

he Market rket

7

Enterp rprise Main ainstre ream am Long ng Tail ail Altium Strategy will differ by market segment but will focus

• n the same goal of enabling innovation

Large scale customers and engineering teams engaging via major software platforms business wide. Partnerships will drive Altium’s future success. Altium’s unique transactional selling model is a critical driver of our existing

• success. Moderate to high complexity

products designed by specialist engineers. Simpler designs carried out by multi-skilled engineers

8

Enab nabling ling Inn nnovati

• vation
• n in

n the he Long ng Tail Segmen gment…

Democr crat atiz izat atio ion of Publi lish shin ing (Desktop Publishing 1980’s) Democr crat atiz izat atio ion of Engin ineerin ing (Makers Movement 2010’s)

3D Printer

Laser Printer

IoT has created a mass market for professional engineering tools. Indirect monetization is key to enabling and sustaining innovation in the long-tail segment

9

Enterprise ise Reso source Plannin ing (ERP RP) (First appeared in 1980’s) Product ct Lifecycle cle Manag agement (PLM) M) (Dassault’s 3D Experience Platform , 2010’s)

Ena nabling ling Inn nnova

• vati

tion

• n in

n the he Ent nterpri erprise e Segment gment…

To speed up innovation in the enterprise segment, Electronic CAD and Product Lifecycle Management (PLM) must come together

Electronic CAD

MCAD ECAD CAM CAE

10

Enab nabling ling Inn nnovati

• vation
• n in

n the he Mainstrea stream Segmen gment…

Comm mmodi

• diti

tizati zation

• n of Busin

siness ss (Data ata & Proce

• cess

ss Manage agement nt) ) Softw twar are throug

• ugh

h Cloud ud

(Cloud-based services appeared in 2000’s)

Comm mmodi

• diti

tizati zation

• n of Engin

ineering ring (Data ata & Proce

• cess

ss Manage agement nt) ) Softw twar are throug

• ugh

h Cloud ud

(Cloud-based services expected to gain traction in 2020’s)

Mainstream evolution will eventually mirror the high-end with the enterprise engineering software evolving from the current delivery model

Next Generation Business-Ready PLM

MS Excel MS Word Visual Studio Adobe Creative

Transfor forma mation tion & Deregu gula lation tion of Ente terpr prise se Solution tions s and Practices ces

Henry Potts – Chief Products & Operations Officer

Agil ile e Enter erpri rise e and the Emergen rgence e of System ems Desig ign n

12

The he Evol

• lution

ion of Ent nterpri erprise e Solutions

• ns & Practi

actices es

Since the 1980's the selling motion gradually moved to the higher levels of management. Global Financial Crisis in 2008 returned purchasing power back to the hands of engineers.

13

The he Rise e of Elec ectroni tronics & P Prolifera

• liferatio

ion of Systems tems Desig sign

The proliferation of electronics and the importance of safety in modern products are causing a shift of focus to system-level engineering and data management

14

Agi gile e Ent nter erpr prise ise – Spee eeding ding up up the he Pac ace e of Inn nnov

• vati

ation

• n

Success depends on the ability of the enterprise to move through innovation cycles faster than its competitors

Elec ectronic nics is crit itic ical l to speedi eeding ng up cyc ycles les of inno novatio ion Exis isting ing Produc duct Lifec ecycle le Mana nagemen ement (PLM LM) ) tools s do not adequa equately ely addr dress ss the need ed of high gh- tech h produc ducts

15

The he Next xt Generati eration

• n Produ

roduct t Desig sign Platf atform...

• rm...

Altium is Uniquely Positioned to Deliver the Next Generation Design Platform for High-tech Products

16

Smart art Produ

• ducts

ts Need ed Smart art Tools ls

Engineering tools need to coalesce and operate at higher level of abstraction Current generation

• f CAD tools come

from drafting

• background. This

limits their level of smartness

The Ar Art of Creatin ing g and Selling g Technology

• logy to

to Ma Mainstr trea eam m Enginee eers

Lawrence Romine – Head of Global Field Marketing

Disin inte terme rmedia iati tion

• n & the Commo

moditi tizati ation

• n of Technology

nology

18

The he Evol

• lution

ion of Selling Soft ftwa ware re to Eng nginee eers

19

XXX

Infor

• rmat

ation ion Asymmet etry ry and Disinte term rmed ediatio ation n

67% OF A BUYER’S JOURNEY IS NOW DONE DIGITALLY!!!! 60% of all pipelined sales opportunities end in a Status Quo decision Chance of making contact with a lead decreases 1000% after the first hour

20

The he Web b Revol

• lutio

ution n - Inf nformati

• rmation
• n

Asy symm mmetry etry & D Disin intermedi termediati ation

• n

Sales have changed more in the past 10 years than in the previous 100. Whereas in the past buyers needed to beware, today buyers are informed and sellers need to beware

Buyer yer advantage ge! Selle ler beware! e! Middlem ddleman n no longer ger requi quired ed

21

Altium's Unique Transactional Sales Model

Every Seat, Every Deal, Every Transaction Counts! Efficiently Processing of Large Volume Transactions

Team-based Selling

Highl ghly y Scala alable ble Low w Cust stom

• mer

Acqu quisitio tion n Cost st

45 45-60 60 Days ys Sales es Cycle

31 31,00 000 Subscri

ubscribe bers rs

Marketing and Sales Automation

5185 New License

22

XXX

Leveraging Altium's Unique Transactional Sales…

Altium's unique transactional sales capability is the most powerful competitive advantage in the age of IoT

Altium’s unique sales will be leveraged throug ugh h M&A Altium ium going ng direc ect in key market ets globa bally ly

Indirect Monetization & Democratization of Engineering

Sam Wurzel – Octopart Co-founder

Octopart’s Journey and Business Model

24

Octopart’s Journey

A Journey Towards Democratization of Electronic Design through Passion, Perseverance & Self-belief

25

XXX Octopart’s Users

26

XXX How Octopa

• part

rt Und nderwrit erwrites es the he Democra

• cratiza

zatio ion of Eng nginee eeri ring

27

XXX Octopart’s Business Model: Seller Pays

+ 200 Others

28

XXX Octopart’s Future Direction…..

The Right Financial Strategy for Successful Execution

Joe Bedewi – Chief Financial Officer

Financial Capacity is Critical to Success

30

Enterpr rprise ise Segment ment Financ ncial al Strate ategy gy... ..

Business Drivers

• Growing demand for

electronics in a PLM/MCAD centric world

• Enable systems-level

innovation through and based on ECAD

Challenges & Opportunities

• To fully enable

innovation in the age

• f IoT
• Ability to deliver on

expectations to do good on partnership & integration with high-end brands

• Stay true to

partnership and execute faithfully to Altium’s Switzerland Strategy

Relevant M&A Strategies

• Improve the target

company’s performance

• Enter into a

transformational merger

• Get skills or

technologies faster

• r at lower cost than

they can be built

Target Areas

• Companies with

ECAD enterprise know-how

• Companies with

product and/or skills that enhance high end capability

Altium Completed M&A:

31

Mainstre nstream m Segment ment Financial ncial Strate rategy. y...

Business Drivers

• Leverage Altium’s

unique transactional selling Model

• Cash Generation to

support investments

• Demand by high-end

customers for mainstream tools

Challenges & Opportunities

• To bring high-end

enterprise capability to mainstream engineering

• To bring about mass

adoption

• Reaching the tipping

point for mass adoption

• Altium transactional

selling model enables incredible reach and a distribution network for new products

Relevant M&A Strategies

• Accelerate market

access for the target’s (or buyer’s) product

• Improve the target

company’s performance

• Get skills or

technologies faster

• r at lower cost than

they can be built

• Consolidate to

remove excess capacity in the industry

Target Areas

Companies with relevant cloud-based

• fferings that can sell

transactionally Cash generating companies that can provide funding for enterprise and long- tail acquisitions Cloud-based, pure SaaS companies with established revenue and strong growth potential / profile

Altium Completed M&A:

32

Long g Tail Segment ment Financ ncial ial Strat rategy egy... ...

Business Drivers

• Growing need to

promote electronic parts within a larger population

• Provide effective

engineering tools for the masses

• Build a strong and

loyal future customer base

Challenges & Opportunities

• Monetization scheme

to go beyond what has traditionally been possible

• To reach critical

mass to get a seat around the table in electronic parts supply chain industry

Relevant M&A Strategies

• Pick winners early

and help them develop their businesses

• Get skills or

technologies faster

• r at lower cost than

they can be built

Target Areas

• Companies that

enhance Web presence and drive traffic with indirect monetization

• Companies with

existing advertising- based revenue

• Technology, talent-

rich, media companies with capability for indirect monetization

Altium Completed M&A:

33

We are confident of achieving our US$100 million revenue goal this financial year We are on track to achieve US$150 million in PCB revenue by 2020 and US$200 million in total revenue by 2020 We are committed to delivering double digit sales and revenue growth this year We are committed to increasing our operating margin to 30% or more We will continue to implement strategic partnerships that can meet converging market demands and needs of our customers We will pursue acquisitions that can further expand or enhance our product offering to accelerate our drive for market leadership

Look

• king

ng Ahea ead.. d...

Thank You