Altium Fiscal 2020 Investor Presentation
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Accelerating Dominance and Transformation through Altium 365, a New Digital Platform for the Electronics Industry ALTIUM FISCAL 2020 INVESTOR PRESENTATION Aram Mirkazemi CEO 17 August – 20 August 2020 For personal use only Joe Bedewi CFO VIRTUAL Kim Besharati VP IR Martin Ive VP Finance Disclaimer This presentation has been prepared by Altium Limited (ACN 009 568 772) Future performance - Forward looking statements, opinions and estimates provided in and is for information purposes only. It does not constitute financial product this presentation are based on assumptions and contingencies which are subject to or investment advice or a recommendation to acquire Altium shares and has change without notice, as are statements about market and industry trends, which are been prepared without taking into account the objectives, financial situation based on interpretations of current market conditions. Forward looking statements or needs of individuals. Before making an investment decision prospective including projections, guidance on future earnings and estimates are provided as a investors should consider the appropriateness of the information having general guide only and should not be relied upon as an indication or guarantee of future regard to their own objectives, financial situation and needs and seek legal performance. An investment in Altium shares is subject to investment and other known and taxation advice appropriate to their jurisdiction. Altium is not licensed to and unknown risks, some of which are beyond the control of Altium Limited. No provide financial product advice in respect of Altium shares. representation or warranty, express or implied, is made as to the fairness, accuracy, With a unique range of technologies, Altium helps organizations and design completeness or correctness of the information, opinions and conclusions contained in communities to innovate, collaborate and create connected products while this presentation. To the maximum extent permitted by law, none of Altium employees, remaining on time and on budget. Products provided are ACTIVEBOM®, ActiveRoute®, Altium 365®, Altium Concord Pro™, Altium Designer®, Altium its directors, employees or agents, nor any other person accepts any liability, including, NEXUS®, Altium Vault®, Autotrax®, Camtastic®, Ciiva™, CIIVA without limitation, any liability arising out of fault or negligence, for any loss arising from SMARTPARTS®, CircuitMaker®, CircuitStudio®, Common Parts Library™, the use of the information contained in this presentation. In particular, no representation Draftsman®, DXP™, Easytrax®, EE Concierge®, NanoBoard®, NATIVE or warranty, express or implied is given as to the accuracy, completeness or correctness, 3D™,OCTOMYZE®, Octopart®, P-CAD®, PCBWORKS®, PDN Analyzer™, Protel®, Situs®, SmartParts™, the TASKING® range of embedded software likelihood of achievement or reasonableness of any forecasts, prospects or returns compilers, Upverter®, X2®, XSignals®, PCB:NG®, and Gumstix®. 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 For personal use only consider, with or without the assistance of a financial adviser, whether an investment is Financial data appropriate in light of your particular investment needs, objectives and financial All dollar values are in US dollars (US$) unless as otherwise presented. circumstances. 2 Agenda 1 FY20 Highlights and Significant Achievements 2 2020 Full Year Financial Performance & Metrics 3 Altium’s Strategy for Dominance and Transformation 4 Altium 365 – A New Digital Platform for the Electronics Industry 5 Appendix: Company Overview For personal use only Altium FY20 Financial Highlights Strong revenue growth of 10% $210M Record EBITDA Margin of 40% Revenue (Underlying 35.8% excluding impact of the AASB16 $189M Leases and PCB:NG remeasurement of contingent consideration) $172M $180M Strong profit before tax growth of 12% Revenue 10% growth 17% increase in subscriber $140M base to 51,006 $150M 23% 15% increase in Altium Designer seats with 9,251 new licenses sold $111M $120M 26% $94M $80M $75.64m $90M 18% $71M $66.8m 40.0% EBITDA/ EBITDA Margin 38.9% (prior years revised for comparative 17% purposes to include the estimated $48.2m impact of the AASB16 Leases) $60M 13% 34.4% $36.4m 15% $30.3m 32.9% $24.8m 32.4% $21.4m 31.0% $30M 30.1% For personal use only 2014 2015 2016 2017 2018 2019 2020 4 Pursuing Dominance and Transformation from a Position of Strength Financial Altium Designer Altium 365 Strength Dominance Adoption Altium is the fastest growing EDA company Altium Designer is the most widespread The world’s first digital platform for with 9 consecutive years of double-digit professional PCB design tool used by design and realization of electronics growth and expanding margin over 100,000 engineers worldwide hardware gaining strong early adoption $93.1m $64.6m $75.6m 9,251 Altium Designer Twice Yearly Cash PBT EBITDA Software New Seats Sold Updates (Up 16%) (Up 12%) (Up 13%) Over 2,600 (Up 15%) Over 5,100 Active No R&D A$4.3b Total Active Users 40% EBITDA Margin Expense Market Dominance Accounts (Up from 38.9%) Capitalization Cap in China 51,006 Seats on Subscription 19% 5 Year Over 30 $189.1m Revenue Years of (Up 17%) (Up 10%) Revenue CAGR R&D Launched AU39c Direct Altium Designer is Used 1 May 2020 For personal use only Debt 60% Presence in Dividend by over 30,000 Free Recurring Revenue Most (Up 15%) Markets Companies 5 Altium 365 Strong Early Adoption Commercial Licensed Registered Accounts Seats Users Altium Commercial Accounts represent businesses Altium Licensed Seats represent predominantly Altium Registered Users represent commercial designers, and entities that have at least one commercial license Altium Designer and Altium Designer SE licenses, engineers and other professionals who have registered for of Altium software (Altium Designer 10 or later) but also include NEXUS and CircuitStudio clients access to Altium software and Altium 365 platform Commercial / Professional 32.3K 80.0K 148.0K Active (100%) (100%) (100%) On Altium Designer 19.6K 51.2K 117.0K Subscription (61%) (64%) (79%) Altium 365 2.75K 10.0K 7.57K * Exploratory (14%) (12.5%) (5.1%) Altium 365 790 2.67K 3.74K ** Full Adoption (2.4%) (3.3%) (2.5%) For personal use only 2,633 5,120 Monthly Active Monthly Active Altium 365 Altium 365 Accounts Users * The total number of Registered Users from Accounts that are in Exploratory stage is 26.0K. 6 All numbers are as of the end of July 2020 ** The total number of Registered Users from Accounts that have fully adopted is 6.13K. From Pursuit of Leadership to Transformation through Dominance Rebuilding Performing Leading Dominating & Transforming... $500M $384-474 $100M $200M 20-25% $500M * Revenue Revenue Revenue $450M 35,000 50,000 100,000 Subscribers Subscribers Subscribers $320-379 $400M 20-25% Electronic Recurring Design Revenue $350M 60-80% 80% $267-303 18-22% $300M $500M * $500M * $226-248 Revenue Revenue 13-17% $250M $200-212 $154-213 100,000 100,000 6-12% 40-45% $189M Subscribers Subscribers 10% $200M $172M 23% $118-159 Revenue 37-42% 10-20% 10-20% Rev. Growth % $140M 20% 26% $93-121 $150M $111M 35-40% $94M 18% $84-99 Electronic Parts Electronic $80M 17% $76-89 37-40% Non-recurring $76M 38-42% & Supply chain Manufacturing & $71M 13% $100M $62M $66.8M 40% Embedded Software Revenue For personal use only 15% $55M 12% 38.9% 14% $48.2M 34.4% $36.4M $24.8M $30.3M 32.9% $50M $21.4M 31.0% 32.4% $9.2M 30.1% EBITDA $3.3M 14.8% * Due to COVID-19, possible 6-12 months delay in achievement. The target revenue of $500M may include 5.9% EBITDA Margin % 5-10% from future acquisitions. The target revenue ranges exclude revenue from future acquisitions. 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2025 7 FY20 Significant Achievements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Limited Altium Altium Full Altium 365 Designer 20 Online Store Altium 365 Availability Released Launched Launch Q1 Q2 Q3 Q4 • Released Altium’s new • Released Altium Designer • Launched online selling • Launched Altium 365 and cloud platform Altium 365 20 with a range of new through Altium Digital acquired over 5,100 active and began moving early capabilities targeting Store to expand reach and users and over 2,600 active customers onto the platform advanced design and capacity accounts on the platform complex projects since 1 May 2020 • Established “Altimade” to For personal use only • China delivered record bring smart manufacturing • Exceeded 50,000 subscriber revenue growth of 27% to Altium 365 leveraging target with 17% growth in and continued to scale in the foundation created by subscribers to 51,006 and the first half. a revitalized PCB:NG 15% growth in new Altium Designer licenses sold 8 Altium 365 Providing Opportunities for Significant TAM Expansion Realization Altium 365 Digital PLM for Electronics ($3Bn) Platform ($2 Trillion) The total global PLM software market size is estimated to be over $20Bn with The total global electronic around $3Bn attributable to electronics manufacturing and supply chain is industry. estimated to be over $2 Trillion. (PLM – Product Life Cycle Management) PCB Electronic Design Software Electronic Hardware Market Products $1Bn CAE for Electronics ($1.4Bn) MCAD for Electronics ($1.6Bn) For personal use only The total global CAE market size is The total global MCAD market size is estimated