Slide 1: Investor Presentation
Investor Presentation 18 August 2021 Chris Tait, Executive Chair James Cody, Chief Financial Officer PG.1
Slide 2: FY21 Summary
FY21 Summary Chris Tait, Executive Chair PG.2
Slide 3: FY21 Summary: Key Highlights
FY21 Summary Key Highlights Sales • Record FY21 revenue of $78.6m, up 77% on pcp1 (FY20: $44.4m) • Strong growth driven by rapid adoption of ProRes RAW and new product launches Margin • Gross profit of $37.4m (47.6%), up significantly on pcp (39.8%) • Driven by less promotional activity, new product
Slide 4: Summary
Summary Atomos Overview • Whole of business review: structure, cost base, processes • Leaner, stronger, more efficient • Captured the video growth phenomenon across all market segments External Factors • Video growth phenomenon • Forex – EBITDA natural USD hedge but revenue influenced • Component su
Slide 5: FY21 Revenue Analysis
FY21 Revenue Analysis Revenue by Market Segment / Region ($m) Revenue ($m)1 53.7 FY20 78.6 FY21 31.4 54.0 45.8 18.7 44.4 29.7 35.6 11.8 9.6 31.1 6.2 1H 3.4 17.3 +96% +71% +82% 16.7 2H 24.2 32.6 32.8 Social Pro Video Entertainment 14.4 18.4 FY17 FY18 FY19 FY20 FY21 34.7 • Record revenue of $78.6m dri
Slide 6: Financial Review
Financial Review James Cody, CFO PG.6
Slide 7: FY21 Financial Summary
FY21 Financial Summary Year Ending 30 June 2021 Margin • Higher margin from new products • Reduced promotional discounting • Procurement gains Costs • Variable costs in line with revenue • Lack of tradeshows drove cost savings • Investment for growth and scale • R&D investment of $5m Earnings • EBIT
Slide 8: FY21 Earning Analysis
FY21 Earning Analysis EBITDA ($m) 15.0 Gross Margin 5.1 10.0 (2.3) 1.1% 47.6% 0.4 8.2 2.4% 13.6 (2.5) 5.0 1.3% 4.1% (0.0) 39.8% (5.0) (1.0%) (7.1) (10.0) FY20 FX Impact Product Mix Pricing Procurement Tariffs FY21 FY20 Revenue Margin Var. Costs STI Cost Fixed Cost FY21 Margin improvement from: • 77%
Slide 9: FY21 Cost Management
FY21 Cost Management Monthly Fixed Costs ($m) Cost Structure ($m) 2.3 2.0 Sales 100% $5m / month breakeven 1.6 COGS 52% 1.0 Vaiable costs 8% GP 40% (ex var costs) Pre COVID COVID low Post COVID Jun 21 Run Rate Fixed costs $2m / month run-rate • Following the significant cost-cutting that took place
Slide 10: Financials - Pro Forma Income Statement
FY21 Financials - Pro Forma Income Statement Pro Forma (A$m) FY20 FY21 Δ pcp1 Revenue 44.4 78.6 77% COGS (26.7) (41.2) (54%) Gross Profit 17.7 37.4 111% Gross Profit Margin 39.9% 47.6% Variable Operating Expense (3.5) (5.8) (66%) Wages & Salaries (8.7) (12.9) (48%) Marketing (4.6) (2.5) 46% General
Slide 11: Financials - Pro Forma Balance Sheet
FY21 Financials - Pro Forma Balance Sheet Pro Forma (A$m) 30 Jun '20 30 Jun '21 Key Insights Cash and cash equivalent 18.8 26.0 • Strong balance sheet with $26m of cash at 30 June 2021 Trade and other receivables 4.7 12.8 • Receivables increase a reflection of much higher sales in Q4 Inventories 16.
Slide 12: Group Strategy & Outlook
Group Strategy & Outlook Chris Tait, Executive Chair PG.12
Slide 13: Our Strategic Pillars
Our Strategic Pillars Our mission is to combine our own deep Accessible, affordable, intuitive products & services video tech with that of other great video tech companies, to build products, services and an ecosystem that democratises content creation for everyone. Our Mission Deep Video Partnershi
Slide 14: Who are our customers? …Social…
Who are our customers? …Social… PG.14
Slide 15: Our Pro-Video Customer
Our Pro-Video Customer PG.15
Slide 16: Our Entertainment Customers
Our Entertainment Customers PG.16
Slide 17: Revenue Growth Highlights
FY21 Revenue Growth Highlights New standards & new products drove record sales Rapid adoption of ProRes RAW ProRes RAW Enabled Camera Market • The standard driven by AMS and Apple partnership • Oscar & Emmy awarded Apple video format launched in 2018 RAW enabled cameras • 10 major camera partners ha
Slide 18: Operational Highlights
FY21 Operational Highlights As we made savings in FY21 we ensured that we continued to invest in the right areas to drive future growth Next Generation • Increased engineering headcount (~$2m/annum) to develop next generation 8K30 silicon and product range upgrade Platforms • Series 2 platform built
Slide 19: FY22 Outlook
FY22 Outlook Demand for high • Core pro video market growing at ~70% (corporate events, streaming, etc) quality video creation, • YouTube viewers watch over one billion hours of videos on the platform every single day consumption and • 207m Netflix subscribers (+40% over 2 years) delivery is growing
Slide 20: Outlook – Potential M&A
Outlook – Potential M&A Atomos will carefully consider acquisitions in the following areas Technology Standards Complimentary Tech New Complimentary Markets Selective businesses with an industry Businesses with great technology / Businesses which provide access standard technology or which has the c
Slide 21: Corporate Snapshot
Corporate Snapshot Pricing Snapshot Major Shareholders Ticker AMS Ellerston Capital Ltd 7.2% Share Price $1.11 Regal Funds Mgmt 6.8% Shares on Issue (m) 218.5 Wilson Asset Mgmt 6.0% Market Capitalisation (m) $242.5m Top 8 shareholders ~41% Board & Senior Management ~7% Board of Directors Share Price
Slide 22: Q&A
Q&A Reminder: • Strategy update and meet the senior executive on Monday, 13 September 2021 • Address “Forum 1” at Melbourne Connect, 700 Swanston Street, Carlton and by Video-link • Register here to attend or to receive Video-link