Atomos Ltd. · ASX:AMS
Atomos — Merger or Acquisition (October 2019)
30 slides from Atomos's merger presentation, Oct 25, 2019
Slide 1: Investor Presentation: Strategic Acquisition & Capital Raising
Investor Presentation Strategic Acquisition & Capital Raising
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Document”) has been prepared by Atomos Limited ACN 139 730 500 (referred to as “Atomos” or “Company”). This Document is current as at the date of this Document and should be read in conjunction with other Atomos periodic and continuous disclosu
Slide 3: The Problem, The Solution, The Opportunity
The Problem The Solution The Opportunity Synchronising footage Enable multi-device Democratise multiple from multiple video and wireless timecode capture device audio sources is difficult, synchronisation capability productions across all expensive, time into EVERY video and market segments – consum
Slide 4: Overview
Overview Strategic acquisition COLLABORATIVE VIDEO SOLUTIONS FOR • In the area of multi-device synchronisation and content creation - Professionals Prosumers Consumers a key emerging trend that is acknowledged as a “next big thing” and will be driving significant future strategic partnerships and re
Slide 5: Agenda
Agenda Executive Summary 6 Timecode Systems Overview 9 Capital Raising 16 Key Risks 19 Appendices 22 Presenting: Jeromy Young Managing Director & CEO James Cody CFO
Slide 6: Executive summary
Executive summary Transaction Details: Atomos Limited (“Atomos” or the “Company”, ASX: AMS) is proposing a strategic acquisition of Timecode Systems Ltd (“TCS”) • TCS is a UK based company that has developed unique IP which delivers multi-device synchronisation applications for video and audio captu
Slide 7: Executive summary
Executive summary Financial impacts: • TCS current revenue is growing as the technology is being commercialised • TCS’ leading technology under Atomos control is expected to drive significant growth in revenue within 12-18 months • Significant synergies through 30% reduced production costs and sales
Slide 8: Agenda
Agenda Executive Summary 6 Timecode Systems Overview 9 Capital Raising 16 Key Risks 19 Appendices 22
Slide 9: Background
Background Synchronising footage from multiple video and audio sources is difficult, expensive, time consuming & you need to be a pro! How do you sync the huge Hours can be spent during the Solutions available are volumes of footage captured edit process manually lining expensive and cumbersome & du
Slide 10: Overview
Overview • Timecode Systems Limited is the UK based global leader in the provision of accurate timecode and metadata, synced and shared wirelessly over RF and WiFi / BlueTooth. The IP underlying its products is protected by a series of patents • Whilst it has been feasible for decades to synchronise
Slide 11: Opportunity
Opportunity Make multiple capture device productions mainstream by enabling wireless timecode synchronisation Embed or licence wireless multi-device synchronisation capability into EVERY video and audio capture device Smartphones Wearable / DSLRs Monitor recorders Broadcast & Bodycams Audio recorder
Slide 12: Stages to consumer delivery
Stages to consumer delivery © Atomos 2019 | Strategic Acquisition & Capital Raising 12
Slide 13: Existing products by market
Existing products by market • Currently the video camera and audio capture market are addressed • TCS’ acquisition will enable Atomos to cover all video and audio by separate products capture markets © Atomos 2019 | Strategic Acquisition & Capital Raising 13
Slide 14: Integration of TCS and key terms
Integration of TCS and key terms Integration of TCS Key terms of the acquisition • Ownership of TCS will enable full integration of the TCS sync technology • The acquisition is expected to be signed on or around 25 October with throughout the Atomos product lineup completion to occur in early Decemb
Slide 15: Agenda
Agenda Executive Summary 6 Timecode Systems Overview 9 Capital Raising 16 Key Risks 19 Appendices 22
Slide 16: Offer details
Offer details Details Placement • Two tranche placement offer to institutional and sophisticated investors to raise approximately $22.56 million via the issue of approximately 17.36 million fully paid ordinary shares (‘Placement’). The Placement will settle in two tranches: • Tranche 1: issuing appr
Slide 17: Key dates of the offer
Key dates of the offer Timetable Wednesday, 23 October 2019 – Trading halt Thursday, 24 October 2019 Company announces capital raising details and signing acquisition agreement Friday, 25 October 2019 Settlement of tranche 1 Placement Wednesday, 30 October 2019 Allotment and quotation of Securities
Slide 18: Agenda
Agenda Executive Summary 6 Timecode Systems Overview 9 Capital Raising 16 Key Risks 19 Appendices 22
Slide 19: Risks associated with the acquisition of TCS
Risks associated with the acquisition of TCS The TCS acquisition is reliant on Atomos raising funds under the Placement to fund the cash component of the consideration. The capital raising is not being underwritten, so there is a risk Conditions to that Atomos may not raise sufficient funds from the
Slide 20: General risks associated with Atomos
General risks associated with Atomos Atomos competes against other video technology companies. Atomos faces the risk that (amongst other things) existing competitors could increase their market share through aggressive sales and marketing Competition risk campaigns, product research and development
Slide 21: Agenda
Agenda Executive Summary 6 Timecode Systems Overview 9 Capital Raising 16 Key Risks 19 Appendices 22
Slide 22: Current Timecode Systems offering
Current Timecode systems current offering Broadcast & Radio Cinema cameras Wireless Receivers Radio Sync Generator Monitor recorders Radio to Wifi/Bluetooth All devices can be used Converter for one production ** Patented 4cm Bulletproof signal Pro Cameras Wearable Low bandwidth for accuracy 300m Sm
Slide 23: Post Acquisition: More Supported Devices
Post Acquisition -→ More Supported Devices Broadcast & Radio Cinema cameras Receivers Atomos Devices become touch screen Monitor recorders Wireless Radio Sync Generators Radio to Wifi/Bluetooth All devices can be used Converter for one production ** Patented + Pro Cameras Wearable 300m Smartphones A
Slide 24: TCS key management
TCS key management Paul Scurrell – CEO and Co-Founder • Brings 30 years of professional audio and engineering experience in TV and Radio to his role as co-founder and CEO of Timecode Systems. • Paul founded TCS in 2012 with an exciting new concept for a wireless timecode solution and an ambitious vi
Slide 25: TCS technology
TCS technology • TCS’s leading wireless sync technology is unique, allowing reliable performance over long distances and in crowded environments. • TCS can transmit timecode at a longer range and lower more robust radio frequency due to the use of 900MHz shorter wave which is a very stable wave band
Slide 26: Atomos unlocks the creative and commercial potential of digital cameras
Atomos unlocks the creative and commercial potential of digital cameras Lower quality monitor Despite the advanced technology of modern digital cameras, users are limited by: • Heavily compressed recordeddata • Not designed for computerworkflows Complex menus • Short recordtimes • Expensive media •
Slide 27: Atomos devices take images directly from the camera's sensor
Atomos devices take images directly from the camera’s sensor, then enhance, record and distribute them for content creation © Atomos 2019 | Strategic Acquisition & Capital Raising 27
Slide 28: Content creation workflow
Content creation workflow CAPTURE PROCESS &ENHANCE FINISH & DELIVERY From the sensor of Atomos products enhance content creation, quality and Edit, Colour Grade, Titles, Graphics all major camera manufacturers creativity Finish in Post Atomos’ devices are compatible with all levels of content creati
Slide 29: Target markets – current & future
Target markets – current & future Atomos’ growing product portfolio will address a US$10B camera equipment market1 Content Creation Social Professional Entertainment Camera Equipment Phone & PhotoCameras Pro Video Cameras Broadcast, TV & Cinema SHINOBI NINJA Atomos Products SHOGUN SUMO NEON 23% CAGR
Slide 30: © Atomos 2019. | Strategic Acquisition
© Atomos 2019. | Strategic Acquisition