Altium Technology & Business Strategy Presentation

November 2017 Sydney Australia Reaching $200 Million by 2020 and Transforming Electronic Design & Its Realization

Aram Mirkazemi – Chief Executive Officer Henry Potts – Chief Operating Officer Transforming Electronic Design & Its Realization…

$200M Revenue Target $100M Revenue 35% Target EBITDA Margin 30% EBITDA Margin 18

2021 to 2018 2025 to 2020 2015 to 2012 2017 to 2014

Successful GET REAL GET FIT GET SMART GET IN THE ZONE IPO Redemption Qualification Domination Transformation

3 ’s Strategy for Success…

Maintaining Disciplined Disciplined Transforming Being True to Our Deep Execution and Remaining Execution to Electronic Conviction that Altium’s Journey Single-Minded About PCB Achieve Market Design & Its Will Bring About Transformation Market Leadership Leadership Realization of the Electronics Industry

Building Strong Strategic Partnership

Building a Strong Partnership with Leading Engineering Software Companies to Connect ECAD with MCAD & PLM 4 Altium’s Secret Sauce…

Diversity in Thoughts Transparency

Product

“Regular Product Releases” and “Delivering Next Generation Sales Products” Perseverance “High Volume Selling” and Ingenuity Finance 0 “Sophisticated Value Proposition” 4 “Growing Revenue Strongly” People and “Expanding Profit Margin” “Diversity in Thinking” and “Aligned in Action and Purpose”

“the Genius of AND”

Adaptability Agility 5 Altium’s Engines of Growth…

2020 Target Revenue Breakdown

Transactional Selling Octopart (Jet Engine)

Product Unqualified Leads Marketing Sales Releases (Air) (Compression) (Combustion) TASKING BSD - Americas (Fuel) 7.5-10%

7.5-10% 30-35% Solution Selling $200M* (Combustion Engine) Revenue 7.5-10% 35% + Qualified Leads Sales Pitch Closing Deals NEXUS (Fuel Mixture) (Compression) (Combustion) EBITDAMargin

15-20%

Indirect Monetization 20-25% (Water Turbine) BSD – Rest of World

Web Traffic Indirect Monetization BSD - EMEA (Water) (Generator) * Includes 5-10% from future acquisitions BSD – Board and System Division (Accounts for all PCB Products Excluding NEXUS) 6 Drivers for Altium’s Next Generation Products

1- Multidisciplinary & System- level complexities in Electronic design are key factors in slowing down the pace of innovation during the ideation phase Key Enabler: Software

2- Collaboration inefficiencies in 3- Lack of direct access to performance electronic parts Supply-chain and data during the utilization phase is a key PCB Manufacturing are key factors in factor in slowing down the pace of innovation slowing down the pace of innovation during the realization phase Key Enabler: Data Analytics Key Enabler: Cloud 7 Altium NEXUS – Working Together Made Easy!

INDIVIDUALLY ENTERPRISE DEFINED & DRIVEN GROUPS WORKING DEFINED & DRIVEN APPROACHES AS A TEAM APPROACHES

• Ad-hoc tool use and design • Legislative, top-down tool processes selection and design processes • Design-reviews as “point in time” • Constrains designer/engineer collaboration events creativity • Multiple design spins • Expensive • Delays, quality issues, cost over-runs • Limited accessibility

8 Altium NEXUS Roadmap…

4.0 Model-Based Electronic Distributed PCB design teams Systems Design working on electro-mechanical systems 3.0 Federated Autonomous PCB design teams working on multi-board systems. Broad market of PCB design teams Collaboration - distributed geography 2.0 Configurable Data PCB design teams working Configurable Processes on multi-board systems

1.0 Multi-Person Based PCB design teams working PCB Design on multi-board systems

9 Cloud and Democratization of Electronics Design Bringing About Disruption

Sam Wurzel – Octopart Co-founder Zak Homuth- Upverter Co-founder New Trends Shaping the Electronic Industry…

Shift to the Cloud From Engineers to Product Designers

Supply Chain PCB Design in Management the Cloud in the Cloud

Manufacturing Design Content management in in the Cloud the Cloud 4 Year Bachelors Degree in Design centered product development, Electrical Engineering Kids getting involved earlier

From Shipping Boxes to Value-add Services From Email and Spreadsheets to Protocols

Upload your design Automated factory Receive board in 3 days Component manufacturers selling direct in small quantities spins up 11 Altium IoT360 …

Distinct product design platforms covering all angles of product development are emerging centered around PLM, Mechanical, Electronics and Software flows, each with varying degrees of support for:

• Product Lifecycle Management • Mechanical Design • Electronic Design • Embedded Software Development • Data & Analytics

Altium is well positioned to lead the Electronics 360 platform

12 Transforming Electronic Industry…

Electronic Design & Manufacturing Services Estimated size: $1,000 - $1,500Bn Concept Realization Requirements Validation

System Product Design Assembly

Electronic Design Board & Board Global Printed Circuit Automation Tools Circuit Fabrication & Board Market Estimated size: $2 - $5Bn Design Assembly Estimated size: $80 - $100Bn

Electronic Components

$2 Trillion Global Semiconductor and Electronic Estimated Industry Size Parts Manufacturing & Distribution Estimated size: $600 - $800Bn 13 Upverter’s Story – Starting out …

Inspiration YC Launch 2008: Designing We move to San 2011: We launch hardware is Francisco and the first cloud- harder than it wrote code... based schematic should be… design tool…

U Waterloo Founding Toronto PCB 2012: We 2004: Zak, 2010: Zak, We move to launch the first Steve and Steve and Toronto and cloud-based Mike meet at Mike start hire a team… PCB design university… Upverter... tool...

14 Upverter’s Story – Building Strength…

Funding New Breed Boards We raise our The IOT starts, We teach them seed round and we focus on debugging and hire a bigger makers, hackers, iteration... team... and hobbyists…

Parts SAAS Manufacturing Community 2014: We are the 2013: We add We start We teach them largest HW part library experimenting hardware design design management & with paid & production... community with 1.3 million parts… subscriptions... over 32K public designs... 15 Upverter’s Story – Getting Traction…

Density System Design Verified We add high- Our first We begin density-design discovery: we approving and and need system verifying constraints design… parts... checking…

Real Activation Parts Concierge We begin We begin to see 2015: We start Our second making parts our first refining our discovery: we for users on business users users’ journey... need better demand… and real parts & more of products… them...

16 Altium Raising the Bar in Electronic Design Automation Industry with its Next Generation Products

Ted Pawela– Chief Marketing Officer Lawrence Romine- Global Head of Field Marketing Altium the “Easy to” Company…

Uncomplicated Value Easy to Get Up Proposition and Running

Direct Sales Easy to Learn, Force Easy to Use

Free Technical Easy to Maintain with No Support Hidden Costs

“Easy to” is in Altium’s DNA 18 The Engineer/User is the Buyer

Buying power returning to engineer

Altium’s selling Other EDA companies’ strength selling strength

Selling moving to higher levels of management

Selling moving to higher levels of management

Solution-based Selling

19 A Unique Solution For Every Usage Profile

MAKERS & STUDENTS

20 Student Video Collaborative Community For PCB Design

The most feature rich free PCB design product Supports concurrent multi-user schematic and PCB design

30,182 Library parts released by the community 2,491 Unlimited Power For Designs have Open Hardware been forked Projects and Education 244,249 244,249 Library parts 80,032 Designs created

22 A Unique Solution For Every Usage Profile

PRODUCT DESIGNERS MAKERS & STUDENTS

23 Product Designer Video

Unique PCB Solution For Every Usage Profile

PCB SPECIALISTS

PRODUCT DESIGNERS MAKERS & STUDENTS

26 PCB Specialist Video World’s Largest PCB Product Community

$44.3m $28.1m NPAT $113.4m Sales 21.7c EPS Cash (Up 22%) (Up 13%) (Up 21%) 34,522 Subscribers (Up 11%) 600 $29.5m $35.9m EBIT Employees Op Cash Flow 34,522(Up 19%) (Up 155%)

30% $110.9m Revenue 5 Year Revenue CAGR A$1.1bn EBITDA Margin (Up 18%) (Up 15%) Market Cap Subscribers (Up 29.3%) (Up 11%) Debt 53% Recurring Revenue 5,520 $33.3m AU 23c Free Seats EBITDA Dividend (Up 7%) (Up 21%) (Up 15%)

28 High Performance Made Simple

Easy Powerful Modern

Experience the most cohesive, Attain the power you need to Get the latest design tools today with user-friendly interface for you to complete large, complex designs - the guarantee of continuous innovation achieve productivity right “out of quickly and accurately. in the future - year after year. the box” Altium Designer 18 Demonstration Video A Unique Solution For Every Usage Profile

PCB SPECIALISTS TEAMS

PRODUCT DESIGNERS MAKERS & STUDENTS

31 PCB Team Design Video Working Together is Hard.

Of new products Of these are late due Of revenue potential are late getting to to insufficient lost when late to market collaboration market

NEXUS Makes It Easy. Altium NEXUS Demonstration Video A Unique Solution For Every Market Segment

High-End

PCB Teams

Mainstream PCB Specialists

Product Engineers

Makers & Students Long-tail

35 Setting The Pace for Innovation

10 Releases 9 Releases 7 Releases PDNA 2.0 5 Releases AD 18 Beta 5 Vault 2.1 SWPCB 2016 Releases PCBWorks 0.9 AD 14.3 AD 16.0 PDNA 1.0 AD 18.0 2 Releases AD 15.1 CM 1.3 NEXUS 0 Releases AD 13.2 CM Demo CM 1.0 PCBWorks 1.0 Compatibility SWPCB 2017 Mode CS 1.1 NEXUS 1.0 Vault 1.0 Vault 1.1 Vault 1.2 AD 15.0 Vault 2.6 Vault 3.0 Vault 2.5 AD 17.0

AD 10 AD 13.0 AD 14.0 CS 1.0 CM Beta CS 1.3 CS 1.4

Vault 2.0 AD 16.1

2010 2011 2012 2013 2014 2015 2016 2017

Order of Magnitude Increase in Updates and Upgrades Since 2012 36 Consistent “Easy To” Customer Experience

Products

Next Generation Technology for PCB

Customer Marketing Experience Sales

Customer & Prospect Systemization of Analytics Transactional Selling

37 Altium’s “Line & Length” Strategy Delivering Margin Expansion While Aggressively Growing the Business

Joe Bedewi – Chief Financial Officer Line and Length – Altium’s Story

 Why use Cricket Terms to describe a corporate value?  Easy to Understand – Engages the participants  Achieving a good result requires balancing objectives and reading the field  Line and Length requires a keen understanding of conditions, competition and timing  What does Line and Length mean to Altium?  Simply put - double digit revenue growth and expanding EBITDA  Meaning we endeavor to drive growth but not at the cost of EBITDA  Why Talk Line and Length at Technology Day?  Technology is about the Future, changing the World, Improvement  It takes Discipline to actually design the Future, build innovation that changes the world and drive improvement  Line and Length instills discipline into all we do – we understand the need to be financially strong in order to deliver a new future

39 Line and Length Delivers

 Investor Returns

 Ability to Execute our Vision  Enables resources to be aligned with Future Products while delivering excellent returns with existing products  Requires discipline in all aspects of Altium’s Execution  Acknowledges the Ingenuity of “And”

40 Altium Industry-Leading Performance

Revenue Growth Rate

20%

enue

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ro G La 0% EBITDA Margin 10% 20% 30% 40%

Last Twelve Months (LTM) EBITDA Margin

41 Driving Performance from a Position of Financial Strength

NPAT $44.3m $28.1m $113.4m Sales 21.7c EPS Cash (Up 13%) (Up 22%) 34,522 (Up 21%) Subscribers $29.5m 600 (Up 11%) $35.9m EBIT Op Cash Flow Employees (Up 19%) (Up 155%)

30% $110.9m Revenue 5 Year Revenue CAGR A$1.1bn EBITDAMargin (Up 15%) Market Cap (Up 18%) (Up 29.3%)

Debt 5,520 $33.3m AU 23c 53% Recurring Revenue Free Altium Designer Seats EBITDA Dividend (Up 7%) (Up 21%) (Up 15%)

42 Achieving Market Leadership by 2020

2020 Target Revenue Breakdown

Octopart

TASKING 7.5-10% BSD - Americas

7.5-10% 30-35% $200M* Revenue 2025

7.5-10% 2020 NEXUS 35% + EBITDAMargin 2017

15-20% 2015

20-25%

BSD – Rest of World Strong Strategy, $100 + Million PCB Market Transforming Leading Technology Revenue & Leadership & Electronic Design & Revenue Expansion of Emerging Leader and its BSD - EMEA Momentum Market Opportunity in Systems Realization Design * Includes 5-10% from future acquisitions BSD – Board and System Division (Accounts for all PCB Products Excluding NEXUS) 43 Altium’s Performance – Line and Length Consistency

Final Dividend 18% 25¢ Interim Dividend 12 20¢ 10 $110M $110.9m 17% 15¢ 8 $100m 8 10¢ 8 $90m 13% $93.6m 10 11 8 $80m 15% $80.2m 5¢ 5 3 4 12% $70m $71.0m 0 14% FY12 FY13 FY14 FY15 FY16 FY17 $60m $61.9m $55.1m $50m $33.3m $10 $40m $27.4m (30.0%) Share Price $22.7m (29.3%) $8 Volume $30m $18.3m (28.3%) (25.9%) $6 $20m $5.9m (9.5%) $10m $0.3m $4 (0.5%) $0m $2

2012 2013 2014 2015 2016 2017 0

44 Thank You