` Limited ASX Announcement

6 December 2019 ALTIUM LIMITED 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

2019 Technology Presentation

Sydney, Australia, 6 December 2019 – Please find attached a copy of the 2019 Technology Presentation to be given today at 10am at the Sheraton Grand Sydney Hyde Park, 161 Elizabeth St, Sydney NSW 2000, Australia as advised in the 2019 Notice of Annual General Meeting to Shareholders.

Note: The Presentation includes guidance and market update on page 52

This presentation has been authorised by Samuel Weiss, Chairman of the Board, Altium Limited.

Investor Relations contact details:

Kim Besharati Alison Raffin VP Investor Relations & Corporate Affairs (US based) Company Secretary (Australia based) Ph:+1 858 864 1513 Ph:+61 2 9474 7890 Mobile: +1 760 828 3567 Mobile: 0413 528120

About Altium

Altium (ASX:ALU) is a multinational software corporation headquartered in San Diego, California, 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 organizations and design communities to innovate, collaborate and create connected products while remaining on time and on budget. Products provided are ACTIVEBOM®, ActiveRoute®, Altium 365® , Altium Concord Pro™, ®, Altium NEXUS®, Altium Vault®, ®, Camtastic®, Ciiva™, CIIVA SMARTPARTS®, CircuitMaker®, CircuitStudio®, Common Parts Library™, Draftsman®, DXP™, Easytrax®, EE Concierge®, NanoBoard®, NATIVE 3D™, OCTOMYZE®, Octopart®, P-CAD®, PCBWORKS®, PDN Analyzer™, Protel®, Situs®, SmartParts™, the TASKING® range of embedded software compilers, ® and X2®, XSignals®.

For personal use only use personal For Founded in 1985, Altium has offices worldwide, with US locations in San Diego, Boston, Dallas and New York City, European locations in Karlsruhe, Amersfoort, Kiev, Munich, Markelo 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, LinkedIn and YouTube.

www.altium.com

Page 1 Technology and Strategy Presentation

Altium 365 – Let the Transformation Begin

6 December 2019 Sydney

Includes guidance and market update on page 52 For personal use only use personal For Industry Transformation Through Market Dominance A Winning Strategy for Long Term Value-Creation

Aram Mirkazemi – Chief Executive Officer For personal use only use personal For Altium’s Journey and Successful Track Record

Rebuilding Performing Leading Dominating & Transforming...

$300M $100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers Electronic Design $250M • Set Revenue Target of $500M for FY2025

60-80% • Surpass $100M Revenue $172M $200M Target Set back in 2014 23% Revenue • Set Revenue Target of Rev. Growth % $200M for FY2020 • Altium Acquires $140M 100,000 • Successful Capital Raise Octopart the #1 26% Subscribers of $44M on ASX Electronic Part $150M • Set Revenue Target of Search $500M * $100M for FY2017 $111M 18% Revenue $94M 17% $80M 10-20% $100M 13% 10-20% $71M 15% $62M $63M EBITDA $55M 12% 36.5% EBITDA Margin % 14% $45M Electronic Parts & Electronic Manufacturing 32.0% $33M Supply chain & Embedded Software $27M $50Monly use personal For 30.0% $23M 29.3% $18M 28.3% 25.9% $6M $0.3M 9.5% 0.5% * The revenue of $500M may include 5-10% from future acquisitions

2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 3 Altium Aims to Unify and Connect Electronics Industry Segmented Value Chains

Electronic Design Estimated size: $2 - $5Bn Electronic Manufacturing Estimated size: $1,000 - $1,500Bn PLM Electronic Parts Supply Chain Vendors IC Design Estimated size: $600 - $800Bn Electronic Manufacturing Tools Vendors Equipment Vendors

Simulation Semiconductor Vendors Manufacturers

Electronic CAD Vendors Electronic Testing Equipment Vendors PCB Assemblers

Electronic Parts PCB Fabricators Manufacturers

Electronic Manufacturing Electronic Parts Services (EMS) Distributors

Electronic Electronic Manufacturing Parts Search & Analytics

Supply Chain Content Aggregators For personal use only use personal For $2 Trillion The three segments of the value chain are currently completely Estimated Industry Size isolated and digitally disconnected within their own chain 4 Industry Transformation Through Market Dominance

Market Market Industry Leadership Dominance Transformation

1 LEAD 2 UNIFY 3 TRANSFORM

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 For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 5 Phases in Pursuit of Leadership, Dominance and Transformation

LEAD UNIFY TRANSFORM

Building Altium Sharing Design Files Hosting Design Data Manufacturing PCB Industry Cloud Platform on Altium 365 on Altium 365 on Altium 365 Transformation Altium 365 Light-weight Collaboration Structured Collaboration Industry-wide Collaboration

Building High Extending Reach Market and Going Direct Scaling Direct In-App Engagement Performing Direct Sales for Man-Out-Of-the-Loop Dominance Sales Force in Key Markets including China Dominance

Driving Innovation & Innovating as Building High Establishing Yearly Market Closing Capability Market Leader & Performing R&D Innovation Cycles

Leadership Gaps with High-End Extending Lead For personal use only use personal For $100M $200M Current Phase $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 6 Executing in Concert and to a Higher Standard on Three Fronts

Channel Cloud Extreme Reach and Capacity Higher Levels of Service and (Challenge of Scale) Customer Engagement (Challenge of Experience)

Leadership

Product & Channel Must Product Product & Cloud be in Lockstep Maximum Power, Productivity and Coverage Must Work as One

(Challenge of Complexity) For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 7 Evolution of Altium’s “Line and Length” Strategy to the “Rule of 50”

• Consistent Revenue Growth and • % Revenue Growth + EBITDA margin % ≥ 50 Expanding Margin • Altium will provide guidance on Revenue and • No revenue or guidance provided by the EBITDA margin company; only analysts’ consensus • Consistently outperforming the Rule of 50 is the • From 2012 to 2019 Altium has Delivered 8 domain of elite companies years of consistent Revenue Growth and • Only Altium and Ansys have been able to Expanding Margin consistently perform at this level • Appropriate for Organic Growth • Appropriate for Transformational Growth

Optimal Performance Extreme Performance For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 8 An Operating Framework for Dominance and Transformation

Revenue Performance • For the next phase of growth, Altium will be thinking of its business in terms of four zones, each with different investment and return profiles Transformation Dominance

• Altium Designer, NEXUS, TASKING will be in the Zone Zone Dominance Zone, while Altium 365 and Octopart will be Transformational Growth Profitable Growth in the Transformation Zone Disruptive Sustaining Innovation • Small acquisitions, such as PCB:NG, Upverter, Gumstix Innovation will be in the Incubation Zone Incubation Productivity • Productivity Zone will include all systems and business Zone Zone infrastructure (including Corporate Services) Breakthrough Innovation Systems & Programs • Altium will transition its reporting from FY21 to reflect this framework for greater transparency Enabling

Investment For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 9 Key Take-aways

• Altium’s next stage of growth will be distinctly different from its previous stages

• Altium will be pursuing Industry Transformation through Market Dominance requiring execution on two parallel tracks

• In its next stage of growth Altium will be stepping up from Optimal Performance to Extreme Performance requiring a change to its “Line and Length” strategy

• As a long-term commitment, Altium will be adhering to the Rule of 50 (% Revenue growth + EBITDA margin % ≥ 50) in every year from FY2021 to FY2025

• Altium is providing annual Revenue and Margin guidance from FY2020 For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 10 Dominating the PCB Design Market Scaling to 100,000 Subscribers

Henry Potts – Chief Sales Officer For personal use only use personal For A Winning Formula for Dominance in the PCB Market

Altium connects to users at all levels within an organization providing a user experience that is unique within the industry Altium’s Touch 05 Go Direct Everywhere; Altium’s touch matters

Always Improving 03 Sell what you have – more will be there tomorrow

Everyone Counts 04 User Focus 01 Every Customer, Every Seat, Focus on the USER and the Every $ Counts Customers will follow Great Product 02 Superior product that is easy

to use and affordable For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 12 A Unique Direct Selling Model

01 A Unique Culture 01 04 Systematic at its Core 04 Transactional selling is Mapping out flows and an integral part of the establishing process, Automate culture to eliminate the time sinks

02 05 02 Performance Matters One Channel 05 Every geography – every Engage the users/customers team – every individual as a channel (sales & measured marketing) 06 03

03 Everything Measured A Unique Product 06 Track metrics & KPIs, Provide The PRODUCT is different real-time transparency via and so is the development

dashboards organization For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 13 Scaling to 100,000 Subscribers

Competitive Expanding into Man out-of-the-loop Data driven account displacement new markets selling approach based Intelligence

Altium’s transactional sales will be leveraged in

multiple ways to reach 100,000 subscribers For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 14 Accelerating Growth in China

Vietnam Beijing Altium’s license compliance business in China shares many Shanghai characteristics with Altium’s systematic approach to sales

Shenzhen For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 15 End-to-End Dominance – Every Segment & Every Region

Extreme Enterprises * From Concept To Realization Agile Enterprises • Selling of the NEXUS solution – Product + Process + Services -> Customer Relationships matter

Power Users & PCB System Product Specialists Design Assembly • Selling of CONCORD PRO on the A365 platform at scale -> User to User Collaboration Board & Board matters Circuit Fabrication & Design Assembly • Selling Subscription & A365 platform services as a product -> Retention of customers imperative Participating in All Design Segments Electronic from Simple, low cost products to Components Makers & Entrepreneurs

Complex Enterprise systems For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 16 * Altium’s ECAD solution is built into Dassault Systemes’ 3DEXPERIENCE platform Domination Mindset

Controlling the narrative All geographies covered – for PCB centric electronic 01 02 all users engaged – all systems design process – customers heard What are the right steps?

Scaling sales by adding man- Altium has captured thought out-of-the-loop processes to leadership in the design 03 04 focus on retention and space and needs to keep it product adoption

The product beat Collaborate with the leader in the complex systems continues and the 05 06 competitor gap is closed development area –

Dassault Systemes. For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 17 Altium 365 – Industry Challenges and Transformative Opportunities Electronic Industry is Ready for Disruption

Leigh Gawne – Chief Software Architect For personal use only use personal For The Humble Field Effect Transistor

1E+10 1E+24 1E+23 1E+09 1E+22 1E+08 1E+21 1E+20 1E+07 1E+19 1E+18 1E+06 1E+17 1E+05 1E+16 1E+15 1E+04 1E+14 1E+03 1E+13 1E+12 1E+02 1E+11 1E+10 1E+01

1E+09 (Log Scale) count transistor Total 1E+00 1E+08

Unit cost, billionths a of billionths dollar (Log Scale) cost, Unit 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 For personal use only use personal For Since 1960, there have been over 13 sextillion of these devices produced - that is 13 with 21 zeros on the end. It is the most frequently manufactured human artefact in history. Volumes increase exponentially.

The unit cost has dropped from over dollar to a billionth of a dollar. Costs decrease exponentially. 19 The Complex, Connected Digital World

Codebases Millions of lines of code Autonomous 0 1 2 3 4 5 6 7 8 9 Control Apple Unix v 1.0 0.01 1971 Space Shuttle 0.4 Machine Car Play 1M 1 10 20 30 40 50 60 70 80 90 Bacteria 1.1 Organism Syphillis (Treponema pallidum) Cloud

Hubble Space Telescope 2 Computing 10M 1 10 20 30 40 50 60 70 80 90 Google Boeing 787 14 Modern total flight software Maps

F-35 Fighter jet 24 Automobile 2013 25M 1 10 20 30 40 50 60 70 80 90 Windows 7 40 50M 2009 Large Hadron Collider 50 Electrification total code Machine Facebook 62 (including backend code) Vision 100M Artificial Car software 100 Average modern high-end car Intelligence Mouse* Total DNA basepairs in genome

120

billion For personal use only use personal For 2B Google all internet services Relentless pace of innovation underpinned by 2B *Human Genome ≈ 3,300 billion “lines” of code the electronics industry at large 20 Constricted Design & Realization

Innovators Entrepreneurs Consumers Dreams Design & Realization Customers Ideas Users

Today

Tomorrow For personal use only use personal For Inherent inflexibility hinders progress in the very world it was designed to support

21 The Long Road to Production

The Breadboard The “Box of Boards” Prototype Industry is good at Prototype The “To-Scale” Prototype supporting this…

The “No Mods” Working Prototype

The Pre-Production Run Prototype The Production Device

The Confirmation Prototype

For personal use only use personal For …but not very good at supporting this

22 Siloed, Poorly Connected Value Chain

Hasn’t modernized. The …was to take the analog internet arrived, but all we world and transplant it seemed to do… into the digital domain SUPPLY

DESIGN MANUFACTURE For personal use only use personal For

23 Altium 365 Connected Value Chain

Digital continuity enabled …for true digitisation and by Altium 365 is the automation in the value foundation… chain SUPPLY

DESIGN MANUFACTURE For personal use only use personal For

24 Inflexible, Inefficient and Expensive

Low-Mix, High-Volume High-Mix, Low-Volume (High Volume, Consumer Electronics) (Prototyping, Small to Medium Volume)

$ $$$$$ $$$$$ $ Supply Chain Quotation, Management and Procurement and $ Logistics Onboarding $$$$$

PCB Fabrication Data Processing, and Assembly Machine Setup

$$$$$ $ and Configuration For personal use only use personal For The big things are cost optimised, expensive The expensive things take the time, poor things amortised over the production cycle automation and efficiency

25 Isolated Automation

Today - Human labour, expensive, error prone processes that don’t scale

Data

Article

Status

Quoting

Machine Machine

Inspection

Reporting

Validation

Procurement Programming

Tomorrow – Automation, digitised, repeatable processes that scale

Quoting Data Validation Procurement Machine Article Status

Programming Inspection Reporting For personal use only use personal For

26 Industry Must Advance

Innovation Entrepreneurs Consumers Dreams Design & Realization Customers Ideas Users

Tomorrow For personal use only use personal For Tomorrow requires industry to adapt to remove the barriers and widen the channel

27 The All-Purpose Engineer

Architecture Scheduling

Overall architecture, bringing Project management elements, together hardware and software making sure schedule is kept elements

Costs Tasks

Being mindful of costs and working Juggling all task in efficient way, to budgets parallel execution expected

Software Creativity

Embedded software and Developing innovative, creative increasingly application software solutions to problems

For personal use only use personal For Communication Hardware

Keeping stakeholders updated, Electronics design including ensuring alignment schematic and layout 28 Global Collaboration

Engineering Project Management The all-purpose engineer Project management needs works flexible hours to to see how things are Customer Manufacturing accommodate the customer progressing to keep on top For personal use only use personal For and meet deadline The customer expects of timing and costs The manufacturer is being robust communication and asked to deliver faster than provides continuous ever before feedback 29 Why Customers Choose Altium? Altium’s Unique Product and Customer Experience Ted Pawela– Chief Operating Officer

Sergey Kostinsky – Chief Technology Officer For personal use only use personal For Altium’s Brand Is “B2U” (Business to User)

Competitors Altium

Dry, Logic Driven Sales & ✓ Emotionally Appealing Sales Marketing Approach & Marketing

Complex Value Proposition ✓ Simple, User Focused Value Directed to Company Proposition

Focus on Time, Money, and ✓ Focus on User Experience

Resource Savings and Productivity For personal use only use personal For

31 Focused On Helping End Users

AltiumLive User Conferences

OnTrack Podcast Series

University Team Sponsorships For personal use only use personal For

32 Focused On Helping End Users

Designer Resources Hub

User Forums Brand Advertising

Customer Videos For personal use only use personal For

33

Users Have a Say In Product Development For personal use only use personal For

34

B2U Philosophy Within The Product Team For personal use only use personal For

35

Enabling Deeper User Engagement with Altium 365 For personal use only use personal For

Continuous Engagement Through The Product Experience

36 Enhancing Value of Subscription The Market Sees That The Future Of PCB Design Is Altium

Industry Leading Financial Performance Market Share Leader in PCB Design Software

Revenue

EBITDA/ EBITDA Margin

Revenue growth For personal use only use personal For

37

Companies Also See Altium As The Future of PCB Design For personal use only use personal For

Based on Open Job Postings On LinkedIn, Indeed, and Monster as of 11/29/19 38 Users See Altium As The Future of PCB Design

Competitors “Everybody that I’ve worked for – and I’ve worked in the automotive industry, I’ve worked for Fortune 500 companies, I’ve worked for startups - everybody has wanted Altium.” -Mark Ross, PCB Designer at Progressive Dynamics

For personal use only use personal For “This is the tool that a lot of people are using, and it’s becoming more and more a standard in the industry.”

-Dugan Karnazes, Founder & CEO at Velocity Research 39

Altium Designer Has Now Passed The Competition For personal use only use personal For

40 R&D Focus on User Experience

Competitor’s “Experience”

Altium Experience For personal use only use personal For

41 R&D Focus on User Experience

Competitor’s “Experience”

Altium Experience For personal use only use personal For

42 A Long History of Innovation In Productivity & User Friendliness

First integrated 3D PCB design First with 3D STEP model support

First integration of SCH and PCB tools within single application First with eCAD centric cloud platform

One of the first affordable PCB layout tools on PC

For personal use only use personal For First unified application with single data model for PCB design First PCB layout tool

on Microsoft 43 Windows Keys to Continuous Innovation

Leveraging the Power of AND

Diverse, Global R&D Organization For personal use only use personal For

Cloud AND CAD 44 Keys to Continuous Innovation

Measure Everything For personal use only use personal For

45

Innovation Through Partnership For personal use only use personal For

46 Key Takeaways – Why Customers Choose Altium

1 Deep User Centricity At The Core Of Altium’s Brand

2 Altium Is Now The Obvious Choice – For Users, For Companies, For The Market

3 Altium’s Products Are The Best In The Industry

4 Altium Has A Proven Ability to “Out-Innovate” The Competition For personal use only use personal For

47 Financial Strength Powering a Transformative Journey Investing for Transformational Growth

Joe Bedewi – Chief Financial Officer For personal use only use personal For Altium’s Track Record of Strong Financial Performance…

23% $35 $180M Revenue $171.8m $30 EBITDA/ EBITDA Margin 26% $150M $140.1m Revenue growth $25 18% $120M 17% $20 $110.9m 13% $93.6m $90M 15% $62.7m 12% $80.2m 36.5% $15 $71.0m $44.9m $61.9m 32.0% $60M $33.3m $10 30.0% $27.4m $22.7m 29.3% ALU Share Price $18.3m 28.3% $30M $5.9m 25.9% $05 9.5%

$0M р

2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 2020 For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 49 Financial Strength is a Hallmark of Altium …

• A history of setting and over-achieving aggressive long-term financial targets

• Eight consecutive years of double-digit revenue growth & expanding margin

• Focused execution with the “ingenuity of and” delivering strong operating leverage

• Transparency for stakeholders and all-in reporting (no capitalization of R&D expenses)

• Value creation at every stage from leadership to dominance to industry transformation For personal use only use personal For

$100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 50 Investing for Transformational Growth

On-going Investments:

• Developing our new cloud platform Altium 365

• Building Octopart Parts Data platform to be industry’s single source of truth for all parts data

• Scaling and bringing efficiency to transactional sales (Cyberpods, business intelligence, analytics & automation)

• Introducing in-app engagement for our growing customer base to accelerate adoption

• Expanding market reach

Future Investments:

• Driving adoption of Altium 365

For personal use only use personal For • Brand advertising for extreme reach $100M $200M $500M Revenue Revenue Revenue 35,000 50,000 100,000 Subscribers Subscribers Subscribers 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 51 Guidance & Outlook…

• The proliferation of electronics through the rise of smart connected devices continues to drive growth for our business for the foreseeable future • Altium is confident of exceeding its 2020 target of US$200 million revenue and is committed to an EBITDA margin floor of 37% (excluding the positive impact of the new leasing standard) • Altium is committed to achieving 100,000 subscribers by 2025 for market dominance & to a revenue goal of US$500 million in 2025 and expects to reach the halfway mark of 50,000 as early as 2020 • As a long-term commitment, Altium will be adhering to the Rule of 50 (% Revenue growth + EBITDA margin % ≥ 50) in every year from FY2021 to FY2025 • Altium comments on full year FY20: • Altium’s revenue is historically skewed to the second half, whilst costs are approximately equally split between the halves • Due to the global manufacturing downturn and the temporary effects of changes in Google Search Algorithm Octopart’s growth in the first half is being impacted

• Revenue in the range of US$205 million to US$215 million For personal use only use personal For • EBITDA margin in the range of 37% to 38% (excluding the positive impact of the new leasing standard)

52

Thank You For personal use only use personal For