Slide 1: Investor Update
Investor Update May 2019 Atomos unlocks creativity and profit for video content creators Advanced technology allows faster, higher quality, more flexible productions
Slide 2: Contents
Contents About Atomos 3 Financial Results 10 Outlook & Strategy 17 Appendices 24
Slide 3: About Atomos
About Atomos “Our VISION is to invent and deliver ground breaking products and disruptive technologies that enhance, simplify and ultimately democratise video content creation”
Slide 4: Atomos – A Corporate Snapshot
Atomos – A Corporate Snapshot • Global video technology company that enhances video content Capital Structure (as at 13 May 2019) Major Shareholders % creation with products that connect the imaging and computer world together Ticker AMS Ms Claire Louise Young2 12% Share Price $0.94 Ellerston Capita
Slide 5: 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 recorded data Complex • Not designed for computerworkflows menus • Short record times • Expensive media
Slide 6: Atomos devices take images directly from the camera's sensor, then enhance, record and distribute
Atomos devices take images directly from the camera’s sensor, then enhance, record and distribute them for content creation © Atomos 2019. | Investor Update
Slide 7: Content Creation Workflow
Content Creation Workflow CAPTURE PROCESS & ENHANCE FINISH & DELIVERY From the sensor of Atomos products enhance content creation, Edit, Colour Grade, Titles, all major camera manufacturers quality and creativity Graphics Finish in Post Atomos’ devices are compatible with all levels of content creat
Slide 8: Target Markets – Current & Future
Target Markets – Current & Future Atomos’ growing product portfolio will address a US$10B camera equipment market1 Content Creation Social Pro Video Entertainment Camera Equipment Phone & PhotoCameras Pro Video Cameras Broadcast, TV & Cinema NINJA Atomos Products SHOGUN SUMO NEW MARKETS NEW MARKETS
Slide 9: Rapidly Growing Markets
Rapidly Growing Markets Social Content Pro Video Content Entertainment Content Accessibility of new social media platform allows Market wide increase in video-focused corporate Increased original content by new online streaming individuals to produce, share & monetise their content marketing, advert
Slide 10: Financial Results
“At $399 it won’t break the bank either. It’s bright, very, very light, and has Financial Results incredibly good battery life. Yep, I like it” – Redshark News on new Shinobi monitor
Slide 11: Atomos – A financial snapshot
Atomos – A financial snapshot Revenue ($m)1 1H’19 Revenue by Region $40.0m 35.6 $35.0m 31.1 30.5 $30.0m 27.5 Asia 17.2 $25.0m 16.7 2H 21% 2H $20.0m US 24.2 $15.0m 18.4 1H EMEA 53% $10.0m 14.4 1H 26% 1H $5.0m $0.0m FY15 FY16 FY17 FY18 FY19 EBITDA (Post R&D) ($m)1 FY18 Revenue Breakdown ($m) $6.0m 5.7
Slide 12: 1H'19 Executive Summary (ending December 2018)
1H’19 Executive Summary (ending 31 December 2018) 1H’19 Revenue Achievements during 1H’19 $24.2m • Completed development of Ninja Platform, launched first monitor recorder product (Ninja V) in September 2018 32% pcp • Growth drivers: – On time new product launch (Ninja V) 1H’19 Gross Profit – Higher
Slide 13: Pro Forma Income Statement
Pro Forma Income Statement P ro F orma ( A$m) 1 H'1 8 1 H'1 9 ∆ p cp Key Insights: Revenue 18.4 24.2 32% • 1H’19 sales of $24.2m, up 32% pcp, driven by: COGS (10.0) (13.7) (38%) Gross P rofit 8.4 1 0.5 26% – Strong sales of Ninja V which was released in September 2018 Gross Profit Margin 45.6% 43.4%
Slide 14: Pro Forma Income Statement & FY19 Prospectus Guidance
Pro Forma Income Statement & FY19 Prospectus Guidance Pro Forma (30 June Y/E)1 FY18 FY19 Key Insights: (A$m) Actual Forecast • Based on 1H’19 result expect stronger sales for full year FY19 than Revenue 35.6 42.2 forecast in prospectus lodged 30 November 2018 COGS (18.3) (22.4) Gross Profit 17.3 19.
Slide 15: Pro Forma Balance Sheet
Pro Forma Balance Sheet P ro F orma ( A$m) 1 H'1 9 Key Insights: Cash and cash equivalents 5.2 • Strong balance sheet with $5.2m cash and zero debt Trade and other receivables 6.1 Inventories 11.1 – Access to a $1.5m EFIC working capital facility if required Other assets 2.6 • Inventory levels incre
Slide 16: Statutory Cash Flows
Statutory Cash Flows Sta tutory C a sh F lows ( A$m) 1 H'1 9 Key Insights: Op e ra ting a ctiv itie s Receipts from Customers 23.2 • Net cash flows in line with prospectus forecast Payments to suppliers and employees (27.6) • Growth in working capital driven by successful launch of Ninja V: Income t
Slide 17: Outlook & Strategy
“If you need an HDR monitor that works both on set and in post-production, you should consider the Atomos Sumo19” - Videomaker.com on SUMO19 Outlook & Strategy
Slide 18: Outlook - Achievements Post End 1H'19 + Full Year FY19
Outlook - Achievements Post End 1H’19 + Full Year FY19 Achievements post end 1H’19 Full Year FY19 Outlook • Finalised license agreement with RED.com LLC • Expect stronger sales than forecast in prospectus lodged 30 November 2018 • Released four new products: • Improving GP margin in 2H’19 vs 1H’19,
Slide 19: Outlook – Growth Initiatives for 2H'19 and beyond
Outlook – Growth Initiatives for 2H’19 and beyond Growth Drivers Description Progress ✓ Released flagship 5” Ninja V recorder/monitor • Leverage tech portfolio to develop new future products ✓ Released 2 versions of Shinobi 5” monitor only Growing Product Portfolio with goal to double range over nex
Slide 20: Growing the Atomos Ecosystem…
Growing the Atomos Ecosystem… © Atomos 2019. | Investor Update
Slide 21: Vision Statement
Vision Statement “Our Vision is to invent and deliver ground breaking and disruptive technologies that enhance, simplify and ultimately democratise video content creation” To achieve our vision we focus on: 1. Controlling and optimising processing, storage and display of raw video images from camera
Slide 22: Investment Highlights
Investment Highlights Leading technology & recognised brand Significant market opportunity Strategic relationships • Invested heavily in technology • Demand for video content continues to • Global license agreement with Apple to development resulting in significant grow globally, coupled with the re
Slide 23: Contacts
Contacts For further information on this presentation, please contact: Key upcoming Tradeshows / Conferences: James Cody Matthew Wright Name Location 2019 Dates Chief Financial Officer Media relations KOBA Seoul 22 - 25 May +61 3 9999 5908 +61 451 896 420 james.cody@atomos.com matt@nwrcommunications
Slide 24: Appendices
Appendices “This is how you can supercharge any camera… You definitely want to check out the Ninja V. I was thoroughly impressed and I’m definitely going to be using this a lot more from now on.” – YouTube star Matti Haapoja on Ninja V
Slide 25: Global Operations
Global Operations Offices in major global locations and strong sales channels 1H’19 Sales by Region • 77 Staff Globally* LONDON PORTLAND PARIS NEWYORK FRANKFURT Asia • 10 Offices in 7 Countries LOSANGELES BEIJING TOKYO 21% US SHENZHEN EMEA 53% • Strong Global SalesChannel 26% • Broad retailer and re
Slide 26: Board
Board Chris Tait Jeromy Young Sir Hossein Yassaie Stephen Stanley Bradley Whitcomb Non-Executive Director Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chairman Co-Founder & CEO Director since 2017 Director since 2009 Director since 2016 Director since 2019
Slide 27: Senior Management
Senior Management Jeromy Young James Cody Trevor Elbourne Co-Founder & CEO Chief Financial Officer Chief Technology Officer Location: Australia Location: Australia Location: Australia • 20+ years technology & management experience • 20+ years financial & accounting experience in both • 23+ years exp
Slide 28: Product Suite
Product Suite 4K Monitor Recorders Production / Studio Broadcast, Pro AV, Accessories & O Ninja Range Shogun Range SUMO Range Shogun Studio + Converters + Accessories • HDMI only • HDMI & Quad SDI inputs • Larger format 19” monitor recorder Shogun Studio • Broad market application due to • Broad mar
Slide 29: We have worked hard to ensure our Brand Strength matches our Product Strength
We have worked hard to ensure our Brand Strength matches our Product Strength
Slide 30: Key Terms Explained
Key Terms Explained “4k60p” “ProRes recording” “1,500 Nits brightness & HDR” Refers to: Resolution / Frame Rates Refers to: Recording Format Refers to: Screen Brightness (Nits) / HDR • Resolution refers to the number of pixels displayed within each • Recording Format or “Codec” refers to how a video
Slide 31: 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 32: © Atomos 2019.
© Atomos 2019. | Investor Update