Slide 1: Strategic Recapitalisation Investor Presentation
Atomos Ltd (ASX:AMS) Hardware. Software. Cloudware. Atomos Strategic Recapitalisation Investor Presentation 12 April 2024
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer The information contained in this document (“Document”) has been prepared by Atomos Limited ACN 139 730 500 (referred to as “Atomos” any person in connection with a proposed investment in the Company constitutes, or is to be taken as constituting, the giving of invest
Slide 3: Chairmans Message, Paul Greenberg
Chairmans Message, Paul Greenberg ... • Atomos has always been an innovative global video technology business with market leadership and significant brand equity • Revenue & EBITDA peaked in FY21 at $78.6m & $8.2m, respectively, but in FY23 revenue fell to $42.8m with an EBITDA loss of $25.5m1 , dri
Slide 4: New Executive Team moving forward
New Executive Team moving forward … Jeromy Young Peter Barber Ben McAlister CEO & Co-Founder COO & Video Entrepreneur Financial Advisor Managing Director Executive Director to the Board and to the CEO 25 Years Global Video 35 Years Global Video Industry 25 Years Public & Private Industry Markets, Ch
Slide 5: Summary – Next chapter in the Atomos journey
Summary – Next chapter in the Atomos journey ... Grow from Strength New Adjacent Markets • Atomos core monitor-recorder market stable • Enter adjacent LED On-Set & Studio Lighting - NEW unique technology • Maintain revenue $40m+ at 40%+ gross profit margins • Products announced (shipping late Q4 FY2
Slide 6: Product Innovation
Product Innovation
Slide 7: Returning to our core strengths
Returning to our core strengths … The Vision Focus on the Art Empower the democratisation of content creation in the Social, User-friendly designs that make video production simple intuitive and Pro Video & Entertainment Markets creative. Enabling creatives to focus on their art. Weddings, Events, M
Slide 8: Ready, Set, Upgrade
Ready, Set, Upgrade … Driving Sales Over 100,000+ active users 500,000 units sold lifetime Automated production is the future We will show our customers why they need their new Ninja and paid cloud services 8
Slide 9: Ninja Phone – Now phones can be Ninjas too
Ninja Phone – Now phones can be Ninjas too Expanding upon existing market opportunity • Video co-processor for the latest iPhones that lets you record from professional cameras onto the iPhone’s storage • Unique HDMI to USB-C, professional adaptor that securely attaches to the back of an iPhone 15 P
Slide 10: The 'Light Bulb/LED Moment' – introducing Ninja Dragon
The 'Light Bulb/LED Moment’ – introducing Ninja Dragon New Adjacent Markets Expand into LED On-Set & Studio Lights • Unique sun spectrum, Ninja controllable camera LED lights • Waterproof, flexible strip light design • Place anywhere, bend, shape and mount technology • Achievable adjacent market pen
Slide 11: New Products and Markets: LED On-Set & Studio Lighting
New Products and Markets: LED On-Set & Studio Lighting Portfolio of new products and market – complementary to Atomos' existing flagship products Atomos brings innovation and creative flexibility to simple LED lighting Ninja Dragon can be LED panel, striplight or focused beam light Various competito
Slide 12: On Set Control = Lights, Cameras, Action!
On Set Control = Lights, Cameras, Action! Able to make production efficient & simple by connecting and controlling lights, cameras, and audio - all from Atomos monitor controls On Set Control 12
Slide 13: Control lights, cameras and monitors from your Ninja!
Control lights, cameras and monitors from your Ninja! A suite of intuitive cloud-based production services to allow creators to focus on their art, not on the tech Simpler, Faster and Higher Quality production workflows Atomos Technology makes this possible 13
Slide 14: Financials
Financials
Slide 15: Profit & Loss – Full Year
Profit & Loss – Full Year A$m FY22 FY23 FY22 vs FY23 Performance 30 June Year End Audited Audited • Macroeconomic impacts (interest rates, inflation, conflict) Revenue 73.3 42.8 • Distractions (ex CEO litigation, Board changes, US writers/actors strike, COGS (44.5) (38.1) balance sheet repair, ASX s
Slide 16: Profit & Loss – Interim (Half Year)
Profit & Loss – Interim (Half Year) A$m 1H23 1H24 H1 FY24 Update 31 December Half Year End Statutory Statutory •1 Sales down ~18% pcp (1H23: $21.1m) Audit reviewed Audit reviewed Revenue 1 21.1 17.4 •2 Statutory gross margin of 31.3%, up from 22.5% pcp, reflecting launch of new products (Q1 FY24) an
Slide 17: Balance Sheet
Balance Sheet A$m Dec-23 Feb-24 Debt Capital Feb-24 Key Comments Audit Mgmt Increase (a) Raise (b, c, d) Pro Forma(e) • Atomos is reviewing additional working capital solutions into the future reviewed Accts to assist in funding new product inventory, which may include: Cash 1.5 1.5 7.8 9.3 1. Debt
Slide 18: Capital Raising
Capital Raising l
Slide 19: Raise overview – up to $16.0m capital raise
Raise overview – up to $16.0m capital raise Financial recapitalisation well supported by major shareholders and incoming Board and Management Equity Capital Raise Use of Funds2 • Up to $16.0m capital raise via: Use of Funds Value Description – Up to $8.0m Placement to Directors and institutional sha
Slide 20: Capital Raise - Details (1/3)
Capital Raise - Details (1/3) Offer Size Up to $16.0m, via the issue of approximately 802 million fully paid ordinary shares • Up to $8.0m Placement to sophisticated and professional investors and three Company Directors (being Jeromy Young, Peter Barber and Paul Greenberg) subject to shareholder ap
Slide 21: Capital Raise – Details (2/3)
Capital Raise – Details (2/3) • Atomos’ major shareholder, Doma, who owns approximately 17.6% of issued shares, has agreed to sub-underwrite the full $8.0m Entitlement Offer • Atomos Directors have agreed to subscribe for $4.1m in the Placement via: Shareholder and – $4.0m total ($2.0m each) from Je
Slide 22: Capital Raise – Details (3/3)
Capital Raise – Details (3/3) • Eligible Shareholders who take up their Entitlement in full may subscribe for additional Entitlement Offer shares in excess of their Entitlements. Additional Take-up of Entitlements • Additional Entitlement Offer shares will only be available to the extent that there
Slide 23: Capital Raise – Use of Funds
Capital Raise – Use of Funds Use of Funds $ Value1 Description Debt Facility repayment (incl. capitalised interest) $8.3m Post raise, Atomos will have no outstanding amounts owing under its external debt facilty Costs restructure $1.0m Primarily related to employee redundancies New products $1.4m Re
Slide 24: Capital Raise – Indicative Timetable
Capital Raise – Indicative Timetable1,2 Key Event Date Announcement of Entitlement Offer, Placement, Director Offer, Broker Offer Friday 12 April 2024 Lodge Prospectus with ASIC and ASX and lodge Appendix 3B with ASX Publication of Notice of EGM on ASX Friday 12 April 2024 Notice of EGM dispatched t
Slide 25: Appendix
Appendix
Slide 26: Refreshed Board with complementary Skill Sets
Refreshed Board with complementary Skill Sets Board & Management with deep video technology expertise coupled with effective oversight and governance Paul Greenberg (Non-Exec Chair) • Previously Chair of MyDeal.com.au (ASX:MYD), acquired by Woolworths Group (ASX:WOW) in late 2022. • Advisory boards
Slide 27: Corporate History – Key Events and Share Price Impacts
Corporate History – Key Events and Share Price Impacts $2.00 Volume 45m Share Price 3 Share Trading (Pre Voluntary Suspension on 28 Feb 23) Volume (m) 5 Share Price ($) $1.80 Last mth1 3 mths2 12 mths2 40m $1.60 Avg. Daily Value $31.9k $65.2k $472.9k 2 6 35m Avg. Daily Vol 452k 898k 1.83m $1.40 1.
Slide 28: Key Risks, Underwriting & Offer Restrictions
Key Risks, Underwriting & Offer Restrictions 28
Slide 29: Key Risks - Specific
Key Risks - Specific Atomos competes against other video technology companies. Atomos faces the risk that (amongst other things) existing competitors could increase their market share through aggressive Competition Risk sales and marketing campaigns, product research and development or price discoun
Slide 30: Key Risks - Specific
Key Risks - Specific Technology investment in Atomos operates in a rapidly changing competitive environment and must ensure continuous efforts are maintained in the improvement of existing products and the development of new R&D and failure to rapidly products. Insufficient attraction of talented de
Slide 31: Key Risks - Specific
Key Risks - Specific The loss of key members of the management team or members of the design and engineering teams, or any delay in their replacement, may adversely affect Atomos’ ability to implement Talent – attract and retain its strategies and may also adversely affect Atomos’ future financial p
Slide 32: Key Risks - Specific
Key Risks - Specific The Company licences intellectual property and technology from third parties for incorporation into its products. The Company generally enters into licence agreements in relation to these arrangements which are on the licensors’ standard terms and conditions which are generally
Slide 33: Key Risks - General
Key Risks - General Atomos may in the future elect to issue new shares or engage in capital raising to fund ongoing working capital requirements of Atomos or acquisitions that Atomos may decide to make. Risks of Shareholder While Atomos will be subject to the constraints of the ASX Listing Rules reg
Slide 34: Key Risks - General
Key Risks - General The price at which Shares are quoted on the ASX may increase or decrease due to a number of factors. These factors may cause the Shares to trade at prices below the Offer Price. There is no assurance that the price of the Shares will increase following the quotation on the ASX, e
Slide 35: Underwriting Agreement
Underwriting Agreement The Company entered into an offer management and underwriting agreement with the Lead Manager in respect of the Offer on 12 April 2024 (“Underwriting Agreement”). The Underwriter’s obligations under the Underwriting Agreement, including to manage the Offer and underwrite the E
Slide 36: International Offer Restrictions (1/2)
International Offer Restrictions (1/2) Entitlement Offer The securities being offered under the Entitlement Offer are not being offered to the public within New Zealand other than to existing shareholders of the Company with registered addresses in New Zealand to whom the offer of these securities i
Slide 37: International Offer Restrictions (2/2)
International Offer Restrictions (2/2) Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as am
Slide 38: Hardware. Software. Cloudware.
Hardware. Software. Cloudware.