The Role of Engineering Tools in the Rise of Smart Connected - - PowerPoint PPT Presentation

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The Role of Engineering Tools in the Rise of Smart Connected - - PowerPoint PPT Presentation

Changes, Implications & Insights The Role of Engineering Tools in the Rise of Smart Connected Products Blue Ocean Equities Technology Conference 2016 5 April, Sydney Disclaimer This presentation has been prepared by Altium Limited (ACN 009


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The Role of Engineering Tools in the Rise of Smart Connected Products

Changes, Implications & Insights

Blue Ocean Equities Technology Conference 2016 5 April, Sydney

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2 Fut utur ure pe performance nce - 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

  • r

guarantee

  • f

future performance. An investment in Altium shares is subject to investment and

  • ther 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,

  • pinions and conclusions contained in this presentation. To the maximum

extent permitted by law, none of Altium employees, its directors, employees

  • r 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

  • bligation 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.

Fina nanc ncia ial l data All dollar values are in US dollars (US$) unless as otherwise presented.

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

  • r 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

  • f

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

  • ther

registered

  • r

unregistered trademarks mentioned in this presentation are the property of their respective owners, and no trademark rights to the same are claimed

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Agenda

2

Internet of Things (IOT) & Engineering Tools

3

The Future of the Electronic Design Automation (EDA) Industry

4

Altium is Well Positioned to Emerge as a Leader

1

Introduction to Altium

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H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 4

Sustained Growth & Profitability - Altium’s Financial Metrics

50M 40M 30M 20M

Sale les

$100M $100M

> 30%

30%

EBITDA

Expense Reven enue

$42.6M Revenue

(up 13% pcp)

$46.4M Cash $9.1M

NPAT

(up 35% pcp)

7.12 EPS

(up 26%)

13% CAGR

29,300

Subscribers

(42% of Revenue)

Debt Free

$41.1M Sales

(up 22% pcp)

AU10c

Dividend

(up 25% pcp)

$10.7M EBITDA

(up 6% pcp) EBIT Margin 23% (down

from 26%) *

Altium’s H1 FY16 Financial Metrics

* Includes revenue and costs from acquisitions

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5

Altium's Journey - a Long History and a Promising Future 2010 2010

1985 1985

1991

1999 1999

The company was founded by creating the first version of Altium Designer, Protel PCB Altium Launches Protel for Windows - World's first Micros

  • soft Window
  • ws-based

PCB design system Altium Successfully completes an IPO o

  • n

Australian Stock Exchange

2006 006

Altium launches Altium Designer 6, the world’s first Native ve 3D P PCB design software Altium launches Altium m Designer 13 introducing DXP 2.0, its next generation integration platform opening up Altium Designer to third-party developers Altium partners with Dassault Systemes SOLIDWORKS to Deliver a specialized version of its PCB Design Software for SolidWorks users

Now Now

Successful Capital Raising of 44M on ASX

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6

Printed Circuit Board Design and Manufacturing Process

PCB Fabri bricati tion PCB Design gn PCB Assemb embly ly Circuit it Design ign

Design Capture Physical Layout Fabrication Assembly

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7

Altium Products

Electronic Design

Design Data Management & Collaboration Software Embedded Software Development Tools

3D Printed Circuit Board Design Software Solution

Vault ult

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8

Diversity of Applications

Automotive Electronics & High-Tech Life Sciences Aerospace & Defence Consumer- Electronics Semiconductors Industrial Controls Automation Research & Education Mobile Devices & Communications Computers

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9

Market Segmentation & Altium’s Product Offering

High-End nd Tools ls - large engineering teams designing complex products

Low-End nd Tools s - simple designs carried out by multi-skilled engineers

Mains instream am Tools s - moderate to high design complexity, carried

  • ut by small teams of specialist

engineers

ATINA

X2 X2

16

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10

Altium’s Strategy for Market Leadership

Closing Advanced Capability Gaps in High-end PCB Design Maintaining Leadership in Large-scale Transactional Sales Delivering the Next Generation Enterprise Solution with Agility Well Executed M&A Strategy and Partnership Leveraged Sales and a Multi-Product, Multi-Channel Strategy

7 1 2 3 4 5 6

Web-based Collaboration & Smart Workflow Monetization Through Smart Delivery of Content

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11

The Altium Advantage

Aligned Leadership Customer Centricity

Core Strengths Competitive Advantages

Enterprising Spirit

Altium’s Secret Sauce

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Agenda

2

Internet of Things (IOT) & Engineering Tools

3

The Future of the Electronic Design Automation (EDA) Industry

4

Altium is Well Positioned to Emerge as a Leader

1

Introduction to Altium

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13

Mega Trends

Information is Indexed Search & Discovery

1990’s

Web 1.0

Social Networking

2000’s

Web 2.0

People are Networked Internet of Things

2010’s

Web 3.0 Web 2.0

Things are Connected and Intelligent

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14

At the Heart of All Intelligent Systems is Electronics Printed Circuit Boards Central to Electronics

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Designing Smart Connected Products Desig signing g Smart rt Connected nnected Produ

  • ducts

cts

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

Elec ectro troni nics Engin inee eeri ring Mechanica nical Engin inee eerin ring

Designing complex objects with sophisticated electromechanical behaviour

Electrical Engineering

Development of wire harness and electrical systems in Electromechanical devices

The Future is Multidisciplinary…

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16

Current Generation of Engineering Tools Fall Short

The current model for tool integration is old and has evolved around the notion of “tool-chains”

CAM CAE PLM

MCAD - Mechanical Computer Aided Design ECAD - Electronic Computer Aided Design CAE - Computer Aided Engineering - Analysis and Simulation CAM - Computer Aided Manufacturing PLM - Product Lifecycle Management

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17

Gartner’s New Technology Adoption Curve for IOT

TECHN HNOLOGY OLOGY TRIGG GGER PEAK OF INFLA LATE TED D EXPE XPECTA TATIONS IONS TROUG UGH H OF DISILL ILLUS USIONM IONMENT SLOPE PE OF ENLIG LIGHTE HTENMEN MENT PLATEA TEAU U OF PRODU DUCT CTIV IVITY ITY

Gartner's 2015 Hype Cycle for IOT (5-10 years)

Interne rnet t of Things gs

  • Benefits better

understood

  • New methodologies

developed

  • Best Practices

identified

  • Startups formed
  • Early adopters found
  • First generation

products produced

  • Next generation

products are produced

  • Mainstream adoption
  • Unfulfilled

promises

  • Only a few

successes

  • Scores of

failure

Next Genera eratio ion Engin ineer erin ing g Tools

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18

Intelligent Tools are Needed to Build Intelligent Products Syste stem Eng nginee eering ring is at the heart of building intelligent products

  • learn from experience
  • search for knowledge

intelligently

  • enable collaboration
  • perate at a higher level of

abstraction

  • be context-aware
  • minimize chances of errors

Future engineering tools will:

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Agenda

2

Internet of Things (IOT) & Engineering Tools

3

The Future of the Electronic Design Automation (EDA) Industry

4

Altium is Well Positioned to Emerge as a Leader

1

Introduction to Altium

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20

EDA Industry is at a Crossroad

Chip Design System Design

EDA

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21

Financial Strategy Will Determine Success

Support of the investment community is fundamental to success There will be a shake-up within the engineering software industry Those who “win the war” are financed the best!

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Agenda

2

Internet of Things (IOT) & Engineering Tools

3

The Future of the Electronic Design Automation (EDA) Industry

4

Altium is Well Positioned to Emerge as a Leader

1

Introduction to Altium

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23

Altium’s Roadmap to Transformation

2015 2017 2020 2025

Strong Strategy, Strong Balance Sheet & Revenue Momentum $100 Million Revenue & Further Acquisitions PCB Market Leadership at $150 Million PCB Revenue Emerging as a Global Leader in System Design Automation

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Thank you