` Limited ASX Announcement

ALTIUM LIMITED 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 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 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. For personal use only use personal For

Delivering Strong Performance & Building Momentum for Further Growth

Altium Mid-Year Investor Presentation Aram Mirkazemi CEO

For personal use only use personal For 26 February 2015 Richard Leon CFO Sydney & Melbourne Introduction

Disclaimer

Future performance This presentation has been prepared by Altium Limited (ACN 009 568 772) and is for Forward looking statements, opinions and estimates provided in this presentation are based information purposes only. It does not constitute financial product or investment advice on assumptions and contingencies which are subject to change without notice, as are or a recommendation to acquire Altium shares and has been prepared without taking statements about market and industry trends, which are based on interpretations of current into account the objectives, financial situation or needs of individuals. Before making an market conditions. Forward looking statements including projections, guidance on future investment decision prospective investors should consider the appropriateness of the earnings and estimates are provided as a general guide only and should not be relied upon information having regard to their own objectives, financial situation and needs and seek as an indication or guarantee of future performance. An investment in Altium shares is legal and taxation advice appropriate to their jurisdiction. Altium is not licensed to subject to investment and other known and unknown risks, some of which are beyond the provide financial product advice in respect of Altium shares. 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

Financial data liability, including, without limitation, any liability arising out of fault or negligence, for any

All dollar values are in US dollars (US$) unless as otherwise presented. 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 For personal use only use personal For appropriate in light of your particular investment needs, objectives and financial circumstances.

INVESTOR PRESENTATION 2 Agenda

1 Company Highlights & Key Focus Areas for the Remainder of FY15

2 Half Year 2015 Financial Performance & Metrics

3 Market Opportunity & Growth Strategy

4 Appendix: Company Overview & Long –Term Outlook For personal use only use personal For IntroductionAltium’s H1 FY15 Financial Highlights

$40 REPORT CARD Expanding Margins EBIT $37.8M Revenue $35 26% $9.6M (up 17% pcp) (up 84% pcp) Maintain top line growth and expand margins. $30 First half 17% revenue growth 5.63 EPS and EBIT margin increased $25 16% (up from from 16% to 26%. 27,000 3.11) Increase subscription $20 renewals rates. Subscribers Renewal rates in key regions $15 (51% of H1 Revenue) AU 8c improved from 81% to 84% (3% Dividend (up 50%) compared to FY14). $10

Acquire New Customers. $5 $59.1M Continued to aggressively $33.7M Sales acquire new accounts at the Net (up 9% pcp) For personal use only use personal For same level as FY14. $0 Cash H1FY13 H1FY14 H1FY15

EXPENSES EBIT EBIT margin %

INVESTOR PRESENTATION 4

Significant Achievements For personal use only use personal For

5 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

For personal use only use personal For interest from resellers

6 European Sales – Delivering Solid Performance

Confident we will achieve full year

○ 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

For personal use only use personal For

7 Other Focus Areas for the Remainder of FY15

Accelerate the transition of Close-out China towards strategic value sales Accelerate the partnership roll out of the tracks to begin expanded selling and Mobilise drive revenue resources to product range Aggressively further increase drive new our subscription account rates acquisition

For personal use only use personal For We are confident to achieve our full year FY15 target of double digit growth

8 Agenda

1 Company Highlights & Key Focus Areas for the Remainder of FY15

2 Half Year 2015 Financial Performance & Metrics

3 Market Opportunity & Growth Strategy

4 Appendix: Company Overview & Long –Term Outlook For personal use only use personal For Altium’s Revenue Sources

Subscriptions Attachment to New License Sales

Lapsed Subscriptions Re-joining and upgrades

Altium 51% Altium Software (50% H1FY14) (New Licenses) Subscription (47% H2FY14) (Recurring Revenue)

For personal use only use personal For Tasking Software (New License & Maintenance) Subscription Renewals Other (Services & Hardware) INVESTOR PRESENTATION 10 Altium’s Subscription Pool

2,700

Lapsed Subscriptions +2,230 Non-renewals +1,330

New Subscriptions Re-join Attached to New License Sales Lapsed Subscribers Re-joining and Upgrades

Developed pool = 85% of subscription pool Under-developed pool = 15% of subscription pool H1 FY15 Renewal rate of 84.6% (comprised mainly of China, Russia & Latin America) (up from 81.6% FY14) Subscription Pool H1 FY15 Renewal rate of 30.1%

~ 27,000 at Dec 14 (up from 23.4% FY14) For personal use only use personal For

11 Seasonality Curves - Revenue: Sales: Deferred Revenue

Sustain revenue growth (13% CAGR)

notwithstanding quarterly seasonality For personal use only use personal For

Linear (Deferred Revenue) 12 IntroductionAltium’s H1 Revenue Contribution by Region

Americas EMEA $16 $16 $14 $14 $12 $12 $10 $10 $8 $8 Historical $6 $6 CAGR 13% $4 $4 $2 $2 Across All Regions $0 $0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15

China APAC $16 $16 $14 $14 $12 $12 $10 $10 Other $8 $8 (Flat last three years)

For personal use only use personal For $6 $6 Tasking (Licenses & Maintenance)

$4 $4 Altium Licenses $2 $2 Altium Subscription $0 $0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 INVESTOR PRESENTATION 13 Altium’s Operating Costs

Workforce investment

Investment focus and deployment to drivers of growth: - R&D - Sales & Marketing resources.

Customer success: - Software maintenance - Technical support, - User education Functions Operating leverage increase Research & Development

through growth of subscription Sales & Marketing For personal use only use personal For revenue Customer Success

General & Admin FY14 FY15 projected 14 Altium’s Balance Sheet

Jun-14 Var Dec-14 $ '000 $ '000 $ '000 %

Cash and Cash equivalents Cash and cash equivalents 59,054 22,049 37,005 168% $60 Trade and other receivables 15,535 22,429 (6,894) -31% Capital Other current assets 1,557 1,582 (25) -2% Raising Total current assets 76,146 46,060 30,086 65%

$50 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% $40 Total non-current assets 7,327 7,942 (615) -8%

Total assets 83,473 54,002 29,471 55%

$30 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% $20 Deferred revenue 25,390 29,727 (4,337) -15% Total current liabilities 32,919 37,397 (4,478) -12%

Borrowings 67 88 (21) -24% $10 Provisions 2,024 2,829 (805) -28% Deferred revenue 4,844 5,981 (1,137) -19% Other liabilities 180 116 64 55% $0 Total non-current liabilities 7,115 9,014 (1,899) -21%

For personal use only use personal For FY11 FY12 FY13 FY14 Dec-14 Total liabilities 40,034 46,411 (6,377) -14%

- Successful capital raising Net assets 43,439 7,591 35,848 472%

- Operating Cash Flow up 16% to $7.4m Contributed equity and reserves 131,280 94,268 37,012 39% - Minimal borrowings - Debt/Equity less than 1% Accumulated losses (87,841) (86,677) (1,164) 1% Total equity 43,439 7,591 35,848 472% 15

Altium’s Cash Flow

Dividends paid/declared H1FY15 H1FY14 Var 16.00 $ '000 $ '000 $ '000 % Cash flows from operating activities Receipts from customers 37,032 35,867 1,165 3% 14.00 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% 12.00 Operating Cash Flow 7,353 6,316 1,037 16% 10.00 Capital Expenditure Payments for property, plant and (1,195) (407) (788) 194% 8.00 equipment

Free Cash Flow 6,158 5,909 249 4% 6.00 Cash flows from financing activities Proceeds from exercise of options - 2,562 (2,562) 4.00 Proceeds from issue of shares 39,966 - 39,966 Dividends paid (7,941) (8,594) 653 Final Repayment of borrowings (38) (105) 67 2.00

Subtotal 38,145 (228) 38,373 > 100% For personal use only use personal For Interim 0.00 Effects of exchange rate changes (1,140) 17 (1,157) > 100% Increase in cash and cash equivalents 37,005 (211) 37,216 > 100% FY12 FY13 FY14 FY15

Steady increase in dividend payments to shareholders 16 Half Year Results Key Metrics

USD millions H1FY15 H1FY14 Change % H1FY15 H1FY14 Change %

Total Revenue (excl. Interest) 37.6 32.2 17% EPS 5.63 3.11 81%

Reported Expenses 27.5 26.3 5% Dividends (AU cents) 8.00 4.00 100% (excl. D&A & Interest)

EBITDA 10.1 5.9 69% Key Margin Analysis Depreciation 0.4 0.5 EBIT Margin 26% 16% Amortisation - 0.3 EBITDA Margin 27% 18% Net Profit Before Tax Margin 26% 16% EBIT 9.6 5.2 84% Net Profit After Tax Margin 18% 10% Net Interest 0.2 0.02 Return on Equity 27% 3% Debt/Equity 0.3% 1.9% Income tax expense 3.0 1.9

Balance Sheet (USD millions) NPAT 6.8 3.4 >100% Cash & Cash Equivalents 59.1 22.0 >100%

Net Assets 43.5 7.6 >100% For personal use only use personal For

Operating cash flows 7.4 6.3 16%

17 Agenda

1 Company Highlights & Key Focus Areas for the Remainder of FY15

2 Half Year 2015 Financial Performance & Metrics

3 Market Opportunity & Growth Strategy

4 Appendix: Company Overview & Long –Term Outlook For personal use only use personal For Rise of Smart Connected Devices

Information Web 1.0 Search & Discovery is Indexed 1990’s

Web 2.0 Social Networking People are Networked 2000’s Electronics puts Web 3.0 Internet of Things Internet into Things

2010’s For personal use only use personal For

19 Printed Circuit Boards Central to Electronics

For personal use only use personal For At the Heart of All Intelligent Systems Are Electronics and Printed Circuit Boards

20 Increasing Demand in Electronics is the Main Growth Driver

60%

By 2017 For personal use only use personal For

40% Electronic Value (Hines, 2012) 75% Electronic Value (Hines, 2012) Traditional Vehicle Hybrid/ 21 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

For personal use only use personal For

22 MultidisciplinaryDesigningDesigning Smart Smart Engineering Connected Connected is ProductsProductsDriving Market Convergence

Cloud System Engineering Cloud application development and infrastructure management

Cloud Embedded System Engineering Development of Control Systems in Computing Electromechanical devices

Electronics Engineering Creation of high-performance electronic hardware with complex form factor

Mechanical Engineering Designing complex objects with sophisticated

electromechanical behaviour For personal use only use personal For

Electrical Engineering Development of wire harness and electrical systems in Electromechanical devices Altium - the Next Generation PCB Design Software Company

We support and work with We support specialised go- deep integration to-market plays Our platform of our tools to base provides other agility to partner engineering With over 30 disciplines years of with other engineering (including Altium is the only continuous mechanical design in PCB design tools pure-play PCB CAD) design software software Altium company in the is best in class world For personal use only use personal For

24 Altium’s High Level Strategy

Build Momentum by Expand Market Reach Focusing on Core through Partnership Strengths

Acquisition For personal use only use personal For

Grow Capability Through Acquisition

25 Growing Capability Through Acquisition & Partnership

Altium will Grow by Acquiring/Partnering with Brands that are Associated with the Design of PCB and Smart Devices

Technology Acquisition

based based

Model)

-

Indirect)

MCAD

-

Farnell

ALTIUM

TASKING

(Catalogue

(Enterprise Model) (Enterprise

(Transaction Model Model (Transaction

(Transactional Model) (Transactional

New New Partners

Brand Acquisition Brand For personal use only use personal For

Acquisition Strategy Partnership Strategy 26 Altium’s Core Strengths & Enduring Competitive Advantages

Core Strengths Competitive Advantages

Established Complex Software Altium is the Only Altium has a Brand in Most IP Consisting of “Pure-Play” PCB Strong Countries in the Millions of Lines of Company in the Operating World Code World Leverage

Sustainable Expanding Business Margin

For personal use only use personal For Transactional Sales Customer Stickiness

Value-based Sales with Strong Altium Enjoys a High Level of Operating Leverage Customer Loyalty 27 Agenda

1 Company Highlights & Key Focus Areas for the Remainder of FY15

2 Half Year 2015 Financial Performance & Metrics

3 Market Opportunity & Growth Strategy

4 Appendix: Company Overview & Long –Term Outlook For personal use only use personal For 30 Years of Continuous R&D in PCB Design Software

The company was founded by creating the first version of Altium Designer, Protel PCB

1985 Altium Launches Protel for Windows - World's first -based Altium launches Altium 1991 PCB design system Designer 6, the world’s first Native 3D PCB design software 1999 Altium launches PCBWorks introducing a specialized version of its PCB Design Software for SolidWorks 2006

Altium Successfully completes an IPO on 2010 Australian Stock

For personal use only use personal For Now Exchange

Altium launches Altium Designer 13 introducing DXP 2.0, its next generation integration platform opening up Altium Designer to third-party developers 29 Design and Manufacturing Process

Circuit Diagram Layout Film Bare Board Assembled Board For personal use only use personal For

Design Capture Layout Fabrication Assembly

30 Altium Products

3D Printed Circuit Board Design Software Altium Vault Tasking Design Data Management & Embedded Software Collaboration Software Development Tools

For personal use only use personal For Electronic Design Embedded FPGA DesignPrinted Circuit Concept Capture & Software Manufacturing Prototype Board Layout Verification Development

31 Diversity of Applications

Automotive Aerospace & Life Sciences Mobile Devices & Consumer-

Defence Communications Electronics For personal use only use personal For

Electronics & Research & Industrial Controls Computers Semiconductors High-Tech Education Automation 32 High Profile Customers

Automotive Aerospace & Defence Life Sciences Mobile Devices Consumer- Electronics

Electronics & High-Tech Research & Education Industrial Controls Computers Semiconductors For personal use only use personal For

33 Global Reach

Sales and Support Centres Research & Development Centres Main Operations Centres San Diego, Boston, Karlsruhe, Shanghai, Sydney San Diego, Ukraine, Netherlands, Shanghai San Diego, Karlsruhe, Shanghai

Regional HQ Global HQ Karlsruhe San Diego Regional HQ Shanghai

For personal use only use personal For Corporate & Registered Office ASX Listing Sydney

Network of channel partners, with over 50 authorized Value-Added-Resellers 34 PCB Design Software Market Segmentation & Size

Total Market size: High-end $800M Currently Addressable: $500M 57% of market Value Large engineering teams designing complex products

20k+ Price Range High-end Mainstream of market value 36% Moderate to high design complexity, carried out by Low-end small teams of specialist 7% of market engineers value. Simple designs carried

For personal use only use personal For out by multi- skilled engineers Low-end Less than 2k Price Range

35 Industry Consolidation & Competitive Landscape

1960’s & 1970’s 1980’s 1990’s 2000’s 2010’s Cadnetix Daisy Veribest (Intergraph) Expedition Mentor Graphics ( )

end Board Station Mentor Graphics -

High Racal-Redac CR-5000/8000 (CR-2000) Zuken

ECAD (Cadence Allegro) Allegro Cadence Cooper & Chan

Altium Designer PCAD Altium PADs PADs (Mentor Graphics)

OrCAD OrCAD (Cadence) Mainstream CADStar CADStar (Zuken)

Altium (Protel) For personal use only use personal For

Accel Technology (Tango) end - CADSoft (Eagle) Eagle National Instruments Low Electronic Workbench (Electronic Workbench) 36 PCB Design Software - Global Market Share

Printed Circuit Board Estimated Market Share

(by Revenue) For personal use only use personal For

Source: PCB Market Trends 2014 – Gary Smith EDA 37 Long-Term Outlook

The impact of Altium’s higher- end product Will maintain or release in FY15 is improve operating anticipated to be leverage felt during FY16 Expect to see continuing growth and beyond in revenue The rise of smart (licences & connected devices subscription) is creating new opportunities for PCB Altium’s aspirational goal is to

achieve $100 million in For personal use only use personal For revenue by FY17

38