Upload
others
View
42
Download
0
Embed Size (px)
Citation preview
Altium Limited ASX Announcement
ACN 009 568 772
Altium Limited - Investor Presentation Sydney, Australia - 19 March 2013 - The executive management of electronics
design software company Altium Limited (ASX:ALU) will today hold an investor
presentation in Sydney at the office of Bell Potter providing an update of the
company’s corporate and business strategy.
The attached presentation will be given. A copy can also be found on the
company’s website: www.altium.com.
Investor Relations contact details: Alison Raffin - Company Secretary Ph:+61 2 9410 1005 ENDS About Altium Altium Limited (ASX:ALU) creates electronics design software. Altium’s unified electronics design environment links all aspects of electronics product design in a single application that is priced as affordable as possible. This enables electronics designers to innovate, harness the latest devices and technologies, manage their projects across broad design ‘ecosystems’, and create connected, intelligent designs. Founded in 1985, Altium operates worldwide. For more information, visit www.altium.com. Altium, Altium Designer and LiveDesign, and their respective logos, are trademarks or registered trademarks of Altium Limited, or its subsidiaries. All other registered or unregistered trademarks mentioned in this release are the property of their respective owners, and no trademark rights to the same are claimed.
Copyright © 2013 Altium Limited Page 1Copyright © 2013 Altium Limited
19 March 2013
Investor Meeting
Copyright © 2013 Altium Limited Page 2
Disclaimer
This Presentation has been prepared by Altium Limited (ACN 009 568 772) 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.
Financial dataAll dollar values are in US dollars(US$) unless as otherwise presented
Future performanceForward 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.
Past performancePast performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
Copyright © 2013 Altium Limited Page 3Copyright © 2013 Altium Limited
Corporate Strategy Overview
Kayvan Oboudiyat – CEO
Copyright © 2013 Altium Limited Page 4
Altium’s Vision
“To enable engineers to design and build intelligent products to make for a better world”
Our vision is underpinned through recognizing that:
Electronics is at the heart of building a smarter planet
Future of electronic design is defined by smart connected devices
Copyright © 2013 Altium Limited Page 5
Altium Electronic Design Automation Software
Altium Content
Altium NanoBoard Prototyping Boards
Altium Community
Altium Ecosystem
Altium Design Data Management
Altium Vault
What We Do
Altium enables engineers to design and build intelligent products to make for a better world
Copyright © 2013 Altium Limited Page 6
Growing Global Reach
Headquarters in Shanghai, China
Research & Development Centers in Amersfoort, Netherlands and Shanghai, China
Sales and Support Offices in Australia, China, Germany, Russia, Switzerland and the United States
Rapidly growing network of channel partners, with over 50 authorized Value-Added Resellers
Copyright © 2013 Altium Limited Page 7
Diversity of Applications
Altium tools are widely used in a variety of industries
AutomotiveElectronics &
High-Tech Life SciencesAerospace &
DefenseConsumer Electronics
Semiconductors Industrial Controls & Automation
Research & Education
Mobile Devices & Communications
Computers
Copyright © 2013 Altium Limited Page 8
Smart Connected Devices
Climate control unit - allows driver to control temperature with thermostat. Also detects pollutants and shuts off air intake accordingly`
Parking aid - operates warning signal to let driver know how close they are to object behind them
Engine management - controls fuel injection, engine temperature, ignition
Automatic transmission - monitors weather, load, incline and position of accelerator to select best gear
Airbag - triggers front and side airbags in event of crash or impact
ABS - controls brakes in emergency and can brake any of four wheels to correct a potential skid
Alarm and immobiliser - controls security. Engine starts when two codes sent wirelessly via aerial in steering wheel
GPS – acquires position data from satellite and using road database provides direction to driver
Copyright © 2013 Altium Limited Page 9
Diversity of Accounts
Engineers worldwide in multiple industries of all sizes design with Altium
AutomotiveElectronics & High-Tech Life SciencesAerospace & Defense Consumer Electronics
Semiconductors Industrial Controls & Automation Research & EducationMobile Devices & CommunicationsComputers
The t
rade
marks
and l
ogos
pres
ente
d he
re ar
e tho
se of
the r
espe
ctive
comp
anies
and
Altiu
m ma
kes n
o clai
m of
trade
mark
or ot
her r
ights
ther
ein
Copyright © 2013 Altium Limited Page 10
Why Our Customers Buy Altium
Capability to develop smarter devices with strong differentiation
Shorter time-to-market
Maximising return by hitting the market window
Development cost reduction
Hitting release targets 90% of the time or better
Copyright © 2013 Altium Limited Page 11
Why Engineers Demand Altium Designer
Copyright © 2013 Altium Limited Page 12
Altium’s Corporate Strategy
Mandate to pursue sustainable, long-term profitability– Strong revenue growth
– Value discipline
A rolling three-year strategic plan supported by:– Openness in all pursuits – technology platform & business model
– Customer centricity
– Focusing on our core competency
– Building financial strength
– Strategic partnerships
– Right balance
Copyright © 2013 Altium Limited Page 13
Growth Drivers
Expansion to upper and lower market
segments
Need –Lower Total Cost of Ownership (TCO)
Need –More Design Capability
(According to recent research by Gary Smith EDA)
PCB Design Software Market
Copyright © 2013 Altium Limited Page 14
Growth Drivers
Sustainable organic revenue growth underpinned by robust market segment growth in “Lower Mainstream” – Altium’s sweet spot
Expansion to the upper market segment through a new product structure & closing the technical capability gap
Expansion to the lower market segment through partnership with component suppliers
China opportunities – large user base & “Internet of Things” (IoT) opportunities
Copyright © 2013 Altium Limited Page 15
Growth Drivers
Product Development Strategy
Focus our product development efforts around Board-Level design
Close the capability gaps between Altium and our competitors
Emphasise “system integration” and “openness” with design tools
BoardBoard--Level Level DesignDesign
Copyright © 2013 Altium Limited Page 16Copyright © 2013 Altium Limited
Financial Overview
Richard Leon – CFO
Copyright © 2013 Altium Limited Page 17
FY 2012 Highlights
Strong sales performance
– Sales up 21% to $61m, Revenue up 14% to $55m
– Strong performance in subscription revenue
Disciplined cost management
– Operating expenses^ down 2% to $47m
Profit improvement
– Underlying profit^ $13m up from $2m
– Improvement in reported results
Improved Balance Sheet
– Net cash doubled to $13m
– No debt
Unfranked dividend of AUD 5 cents/share
– (Interim FY13 dividend of AUD 3 cents/share)
Strong Performance
^ Operating expenses & Underlying profit excludes one-off costs and non-cash expenses as reported (refer appendix)^ Operating expenses & Underlying profit excludes one-off costs and non-cash expenses as reported
(1st half)
Copyright © 2013 Altium Limited Page 18
Continued Growth
Predictable subscription sales– 44% of sales derived from subscriptions and continues to grow
– High subscription attachment to license sales contributes to growth
Solid license sales – Disciplined product development to reduce impact of irregular
releases and to support license sales
Other revenue streams– Embedded software compiler licenses and services contribute
reliable and ongoing revenue $5m-$6m annually
– Training revenue growth ~5% delivering $3m-$4m annually
Continued sales & revenue growth supported by
subscription model
Copyright © 2013 Altium Limited Page 19
Drivers for Solid Sales Growth
1. Expanding into addressable market
2. Growth in operating regions
3. Sustainable subscription growth
Copyright © 2013 Altium Limited Page 20
Expanding into Addressable Market
Addressable Market – estimated >$700m market for 2013
Altium is currently positioned and performs strongly in the ‘Lower Mainstream’ segment
– Forecast seat growth CAGR 10% in ‘Lower Mainstream’ as opposed to CAGR 2%-3% growth in other segments*
Expansion into other segments
– Already see success in expanding into other segments driven by our product’s ability to address customers’ changing needs
– Targeted product development to achieve further commercial expansion into other segments
Leading position in fastest growing
segment
* Gary Smith* According to recent research by Gary Smith EDA
Copyright © 2013 Altium Limited Page 21
Growth in Operating Regions
Global coverage
Expanded reach in Americas through sales channel development
Europe return of business confidence
Strategic move to China to capitalise on large user base and access to larger talent pool
Strong sales across all
operating regions
1st half
Copyright © 2013 Altium Limited Page 22
Content Driven Subscription
Strong subscription attachment rates on license sales paired with high renewal rates support predictable ongoing revenue streams
Meeting customer needs through continuous stream of up-to-date content to match the fast pace of change
Continue R&D investment to deliver subscription value to customers
Continuing growth in subscription base from high attachment & renewal rates
$25m
FY12 subscription sales $25m up 27% from previous year
Copyright © 2013 Altium Limited Page 23
Disciplined Cost Management
Discontinuation of non-core projects in 1st half FY13 – Savings up to $1m annually
‘Other’ costs – one-off relocation and restructuring costs completed in 1st half FY13
– non-cash items include onerous lease provision (FY12) & share based payments (FY13)
Value Framework – Rigorous cost management process
– Disciplined cost approvals
Low capital expenditure requirements
Commercially focused R&D spend
Value based cost management
Copyright © 2013 Altium Limited Page 24
Summary
Expect continued sales growth– New product released in early February expected to drive license sales
– Continued investment in content delivery to support subscription growth
Mixed macro economic environment– Americas expected to grow with early signs of recovery
– Europe may be impacted by slower growth
Commercially focused R&D
Sustainable profitability to support continued return of value to shareholders
Discipline in product delivery and customer centricity to support business growth
Copyright © 2013 Altium Limited Page 25Copyright © 2013 Altium Limited
Q & A
Copyright © 2013 Altium Limited Page 26Copyright © 2013 Altium Limited