Slide 1: FY23 H1 Results
April 2023 FY23 H1 Results Trevor Elbourne Chief Executive Officer James Cody Chief Financial Officer 1
Slide 2: Atomos at a glance
Atomos at a glance Global Leader in Video Technology While the industry makes better cameras, we make cameras better. Summary Began by making beautifully-designed, compact, affordable products that make cameras better • Founded in 2010 • Invented the monitor-recorder with the first Ninja • Customer
Slide 3: Operations Outlook: Building a better business
Operations Outlook Building a better business November 2022 AGM status April 2023 update Transform business from being circa $73m Business now projected to be breakeven at mid revenue break-even (FY22) to circa $60m to fifties $m – lower than planned break even Smaller operating footprint and laser-
Slide 4: Operations Outlook: Cash Management Plan
Operations Outlook Cash Management Plan Key Elements Finished Goods Components • Plan for continuing tougher global economic conditions • 30% lower cost base ensures lower breakeven point • Improve product margins to get back into mid-forties • Significant inventory holding reduces cash required for
Slide 5: Financial Overview: Revenue Analysis
Financial Overview Revenue Analysis Annual Revenue ($m) 1H 2H 78.6 73.3 • First half sales 48% down on 1H FY22 53.7 • Challenging global economic conditions led to softer Q2 sales and 45.8 32.4 the sales channel began de-stocking as a result 44.7 35.7 29.5 12.1 • Q2 sales heavily affected by an indu
Slide 6: Group Strategy & Outlook
1H FY23 Group Strategy & Outlook Trevor Elbourne Chief Executive Officer 6
Slide 7: Products & Services: Strategy recap
Products & Services Strategy recap Continue to make best-in-class hardware products which enhance the creative process for film makers and augment these products with a suite of connected cloud services that remove obstacles and allow our customers to focus on their art. Get closer to our customers
Slide 8: Products: Connected Series products powering cloud-based workflows
Products Connected Series 2 products powering cloud-based workflows Atomos • Expansion module designed for existing ~175,000 Ninja customers When combined with Atomos Cloud Connect for Ninja • Makes every Ninja in market cloud- Studio, Series 2 products will enable connected • Also adds a profession
Slide 9: Shrink distances. Expand horizons. Cloud Update
Shrink distances. Expand horizons. Cloud Update 9
Slide 10: Cloud Services – what is Atomos Cloud Studio
Products Cloud Services – what is Atomos Cloud Studio iPad app for control and remote viewing Video from Atomos devices or from Atomos iPhone app can be used with Live or Edit Launched March 2023 Live Production Live Productions can be streamed directly to social platforms Video production technolog
Slide 11: Atomos Cloud Studio: Revolutionizing live production
Atomos Cloud Studio Revolutionizing live production Outside Broadcast Vans – Legacy Atomos Cloud Studio – Live Live Production Production SIMPLIFY Easier Cheaper Much Wider Appeal Eliminate Traditional Live Production • Not scalable adoption barriers Atomos Live Production • Scalable (cloud based) •
Slide 12: Cloud Pricing
Cloud Pricing Range of options for all budgets and use cases • Plans start at as little as $5/month for simple streaming and camera to cloud • Ability for higher quality video, and having more connected devices increases on the higher plans • Plans include credits for live production, with the abili
Slide 13: Products: Transition to offering cloud services
Products Transition to offering cloud services Selling hardware devices only Where we’ve Hardware products 3rd Parties 3rd Parties 3rd Parties come from ON SET FILE TRANSFER LIVE/POST PRODUCTION DELIVERY Atomos devices Ninja, Shogun, Sumo Reliant on a variety of solutions provided by industry partne
Slide 14: Atomos Cloud Studio: Good early momentum with high growth rate
Atomos Cloud Studio Good early momentum with high growth rate Camera to Cloud – Early Adoption • Private. limited BETA went live May 2022 • Free, open Public BETA went live Sep 2022 • BETA service was only a preview – didn’t have all features enabled • 66% average monthly growth in number of Atomos
Slide 15: Series 2 & Atomos Cloud Studio: Addressing new markets
Series 2 & Atomos Cloud Studio Addressing new markets Studio & broadcasting Monitor recorder market • Impressive roll-call of early participants in BETA program: Global video studios, Major US sport leagues, Global Total market is much larger brands such as Ralf Lauren and Sundance Film 25 Festival
Slide 16: Financial Review
1H FY23 Financial Review James Cody Chief Financial Officer 16
Slide 17: Financial Review: Summary
Financial Review Summary Revenue • First half revenue of $21.1m (1H FY22: $40.9m) Margin • Underlying gross margin of 42.9% before impact of promotional pricing & provisioning • Restructured to right-size, >30% of fixed costs removed Costs • Business now breakeven at mid fifties $m (FY22: revenue of
Slide 18: Financial Review: Earnings Analysis
Financial Review Earnings Analysis GROSS MARGIN BRIDGE (%) EBITDA BRIDGE ($m) Underlying margin : 42.9% • Underlying Gross Margin of 42.9% before impact of • Net fall in gross profit of $14.6m discounting to drive sales • Variable costs lower due to lower revenue • Downward pressure on selling price
Slide 19: Financial Review: Income Statement
Financial Review Income Statement Δ pcp1 Δ pcp1 A$m 1H FY23 1H FY22 Non-recurring items (A$m) 1H FY23 1H FY22 (A$m) (%) Revenue 21.1 40.9 (19.8) (48%) Founder transition costs - 0.8 Gross profit 4.8 19.4 (14.6) (75%) Redundancies (restructuring) 0.3 - Gross profit margin 23% 47% n/a (25%) CEO separa
Slide 20: Financial Review: Balance Sheet
Financial Review Balance Sheet 30 30 Δ pcp1 Δ pcp1 Key Insights A$m Dec’22 Jun’22 (A$m) (%) Cash & cash equivalents 6.2 5.0 1.2 24% • Receivables reduced following huge May/June revenues Trade & other receivables 4.6 20.7 (16.0) (78%) • Inventory balance moderately lower – future purchases Inventori
Slide 21: Financial Review: Cash Flow
Financial Review Cash Flow 30 30 Δ pcp1 Key Insights A$m Dec’22 Jun’22 (A$m) Reported EBITDA (12.7) 2.4 (15.1) • Deterioration in earnings due to revenue and margin Non-cash items in EBITDA 0.6 (0.2) 0.8 pressure Capital expenditure (2.9) (3.0) 0.2 • Capex to drive investment in the future – Series
Slide 22: Corporate Snapshot
Corporate Snapshot Pricing Snapshot Major Shareholders Ticker AMS Doma Group 17.6% Share price $0.069 Ellerston Capital 11.1% Shares on issue (m) 401.8 Regal Funds Management 11.0% Market capitalization $27.7m Top 10 Shareholders ~46% Board and Senior Management ~4% Board of Directors Share Price Hi
Slide 23: Hardware. Software. Cloudware.
Hardware. Software. Cloudware. 33