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

Transcription

1 Changes, Implications & Insights The Role of Engineering Tools in the Rise of Smart Connected Products Blue Ocean Equities Technology Conference April, Sydney

2 Disclaimer This presentation has been prepared by Altium Limited (ACN ) and is for information purposes only. It does not constitute financial product or 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 of 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 other registered or unregistered trademarks mentioned in this presentation are the property of their respective owners, and no trademark rights to the same are claimed Financial data All dollar values are in US dollars (US$) unless as otherwise presented. Future performance - 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 or guarantee of future performance. An investment in Altium shares is subject to investment and other 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, 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 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 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 appropriate in light of your particular investment needs, objectives and financial circumstances. 2

3 Agenda 1 Introduction to Altium 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

4 Sustained Growth & Profitability - Altium s Financial Metrics Altium s H1 FY16 Financial Metrics 50M 40M Sales Revenue > 30% EBITDA $100M $46.4M Cash $9.1M NPAT (up 35% pcp) $42.6M Revenue (up 13% pcp) 29,300 Subscribers (42% of Revenue) 30M Expense 7.12 EPS (up 26%) 13% CAGR EBIT Margin 23% (down from 26%) * AU10c Dividend (up 25% pcp) 20M H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Debt Free $10.7M EBITDA (up 6% pcp) $41.1M Sales (up 22% pcp) * Includes revenue and costs from acquisitions 4

5 Altium's Journey - a Long History and a Promising Future The company was founded by creating the first version of Altium Designer, Protel PCB 1985 Altium partners with Dassault Systemes SOLIDWORKS to Deliver a specialized version of its PCB Design Software for SolidWorks users Altium launches Altium Designer 6, the world s first Native 3D PCB design software Altium Launches Protel for Windows - World's first Microsoft Windows-based PCB design system Now 2010 Altium Successfully completes an IPO on Australian Stock Exchange Successful Capital Raising of 44M on ASX Altium launches Altium Designer 13 introducing DXP 2.0, its next generation integration platform opening up Altium Designer to third-party developers 5

6 Printed Circuit Board Design and Manufacturing Process Circuit Design PCB Design PCB Fabrication PCB Assembly Design Capture Physical Layout Fabrication Assembly 6

7 Altium Products Vault Design Data Management & Collaboration Software Embedded Software Development Tools Electronic Design 3D Printed Circuit Board Design Software Solution 7

8 Diversity of Applications Automotive Aerospace & Defence Life Sciences Mobile Devices & Communications Consumer- Electronics Electronics & High-Tech Research & Education Industrial Controls Automation Computers Semiconductors 8

9 Market Segmentation & Altium s Product Offering High-End Tools - large engineering teams designing complex products ATINA X2 Mainstream Tools - moderate to high design complexity, carried out by small teams of specialist engineers 16 Low-End Tools - simple designs carried out by multi-skilled engineers 9

10 Altium s Strategy for Market Leadership Leveraged Sales and a Multi-Product, Multi-Channel Strategy 1 Web-based Collaboration & Smart Workflow 7 2 Maintaining Leadership in Large-scale Transactional Sales Monetization Through Smart Delivery of Content 6 3 Closing Advanced Capability Gaps in High-end PCB Design 5 4 Well Executed M&A Strategy and Partnership Delivering the Next Generation Enterprise Solution with Agility 10

11 The Altium Advantage Enterprising Spirit Altium s Secret Sauce Core Strengths Aligned Leadership Competitive Advantages Customer Centricity 11

12 Agenda 1 Introduction to Altium 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

13 Mega Trends 1990 s Web s Web 2.0 Web s Web 3.0 Search & Discovery Social Networking Information is Indexed Internet of Things People are Networked Things are Connected and Intelligent 13

14 At the Heart of All Intelligent Systems is Electronics Printed Circuit Boards Central to Electronics 14

15 The Designing Designing Future Smart is Smart Multidisciplinary Connected Connected Products Products Cloud System Engineering Cloud application development and Infrastructure management Embedded System Engineering Development of Control Systems in Electromechanical devices Electronics Engineering Creation of high-performance electronic hardware with complex form factor Mechanical Engineering Designing complex objects with sophisticated electromechanical behaviour Electrical Engineering Development of wire harness and electrical systems in Electromechanical devices

16 CAE CAM Current Generation of Engineering Tools Fall Short PLM The current model for tool integration is old and has evolved around the notion of tool-chains 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 16

17 Gartner s New Technology Adoption Curve for IOT TECHNOLOGY TRIGGER Unfulfilled promises Only a few successes Scores of failure Startups formed Early adopters found First generation products produced PEAK OF INFLATED EXPECTATIONS Internet of Things Benefits better understood New methodologies developed Best Practices identified TROUGH OF DISILLUSIONMENT Next Generation Engineering Tools SLOPE OF ENLIGHTENMENT Next generation products are produced Mainstream adoption PLATEAU OF PRODUCTIVITY Gartner's 2015 Hype Cycle for IOT (5-10 years) 17

18 Intelligent Tools are Needed to Build Intelligent Products Future engineering tools will: learn from experience search for knowledge intelligently enable collaboration operate at a higher level of abstraction be context-aware minimize chances of errors System Engineering is at the heart of building intelligent products 18

19 Agenda 1 Introduction to Altium 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

20 EDA Industry is at a Crossroad Chip Design EDA System Design 20

21 Financial Strategy Will Determine Success There will be a shake-up within the engineering software industry Support of the investment community is fundamental to success Those who win the war are financed the best! 21

22 Agenda 1 Introduction to Altium 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

23 Altium s Roadmap to Transformation 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 23

24 Thank you