Slide 1: Investor Presentation
30TH AUGUST 2022 Investor Presentation Trevor Elbourne Chief Executive Officer James Cody Chief Financial Officer
Slide 2: FY22 Summary
FY22 Summary Trevor Elbourne Chief Executive Officer
Slide 3: ATOMOS at a glance
ATOMOS at a glance HIGH-GROWTH GLOBAL BUSINESS GLOBAL LEADER IN PROVIDING MUST-HAVE TOOLS FOR Revenue ($M) CONTENT CREATORS 79 82 54 45 36 UK Germany 30 31 USA 28 15 Japan 1 3 6 China FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Philippines • Founded in 2010 Singapore • Sustained high
Slide 4: ATOMOS at a glance: innovative product business
ATOMOS at a glance INNOVATIVE PRODUCT BUSINESS Atomos Products, why our customers love us Solving Problems We Listen Innovation 450,000 Atomos created a new product We continue to listen to Atomos maintains its Total products that have category with the release of its customers' needs - competitive
Slide 5: Cloud services successfully launched
ATOMOS at a glance CLOUD SERVICES SUCCESSFULLY LAUNCHED • Successfully launched at end of FY22 offering new and innovative workflows to content creators • Integral part of new Series 2 products also launched end of FY22 • Currently in BETA with no charge to customers to accelerate trial • Paid plans
Slide 6: FY22 operational review
FY22 operational review • Record revenue despite challenging circumstances Financial Highlights • Restructured to right-size the business • Cash improvement since June, working capital to unwind through H1 Organisation • Experienced leadership team now in place with further key roles to be filled •
Slide 7: Group Strategy & Outlook
Group Strategy & Outlook Trevor Elbourne Chief Executive Officer 7
Slide 8: Our Strategic Pillars
Group strategy & outlook OUR STRATEGIC PILLARS Our Strategic Pillars Products Accessible, affordable, intuitive products & services The Vision To democratise content creation and delivery. Our essentials for long-term success The Mission To combine our own deep video tech with that of other great Te
Slide 9: Strategic aims
Group strategy & outlook STRATEGIC AIMS Grow revenue, grow margins & get closer to our customers Evolving products into Revenue growth Growing margins Get closer to our software & cloud services customers Atomos currently generates almost all The introduction of Direct-to consumer sales will A more
Slide 10: Strategic aims - rollout
Group strategy & outlook STRATEGIC AIMS - ROLLOUT Looking ahead, what to expect from Atomos 12 months 2-3 years 3-5 years Expand Execute Consolidate • Introduce recurring revenue streams via cloud • Launch next generation of hardware platforms • Consolidation of strategy which emphasizes services &
Slide 11: Direct sales
Group strategy & outlook DIRECT SALES eCommerce Reach New Customers Targeted marketing and low-friction - Sell device products via redirection to “buy now” button to target eCommerce customers we can’t currently reach • Well considered strategy in place to not disrupt current sales channel revenue B
Slide 12: Operations
Group strategy & outlook OPERATIONS Delivering on the plan Build management team Fill gaps in senior management team: Chief • Conducting organizational review during FY23. Key Commercial Officer, Chief Product Officer hires to be made. Engaged well-respected Think & Grow • Hire Chief Commercial Offi
Slide 13: Financial Review
Financial Review James Cody Chief Financial Officer 13
Slide 14: Financial review: summary
Financial review SUMMARY Sales • Record sales of $82m, 4-year CAGR of 23% Margin • Underlying gross margin of 43.4% • Business restructured to right-size - $2m of cost removed Costs • Investment made to deliver Series 2 platform Earnings • Underlying EBITDA of $4.5m (5.5% of revenue) • Cash position
Slide 15: Revenue analysis
Financial review REVENUE ANALYSIS ANNUAL REVENUE ($M) HARDWARE DEVICES SOLD (‘000) / # DEVICES 120.0 16 82.0 14 2H 1H 78.6 14 100.0 11 Hardware Devices Sold ('000) # Devices 12 -10% 80.0 10 53.7 40.9 9 10 44.7 45.8 60.0 7 8 35.7 104.0 29.5 12.1 98.3 6 40.0 17.3 59.2 57.3 4 +25% 41.1 20.0 32.6 32.8 2
Slide 16: Earnings analysis
Financial review EARNINGS ANALYSIS GROSS MARGIN BRIDGE (%) EBITDA BRIDGE ($M) Underlying margin : 43.4% One-off impacts: 3.5% • Underlying Gross Margin of 43.4% before impact of year end • Net fall in gross profit of $4.7m discounting to drive sales and clear discontinued product • Opex increase dri
Slide 17: Fixed cost base
Financial review FIXED COST BASE Δ pcp1 Δ pcp1 Key Insights A$m FY22 FY21 (A$m) (%) • Investment in headcount to drive delivery of Series 2 platform Employment Costs (16.5) (15.3) (1.2) (8%) • Significant further headcount added under previous leadership - largely unwound STI Expense 0.0 (2.5) 2.5 1
Slide 18: Income statement
Financial review INCOME STATEMENT Δ pcp1 Δ pcp1 Non-recurring items FY22 FY21 A$m FY22 FY21 (A$m) (%) Founder Transition Costs 0.8 - Revenue 82.0 78.6 3.4 4% Restructuring Costs 1.9 - Cloud Services Build 1.1 - Gross Profit 32.7 37.4 (4.7) (13%) Inventory Clearance 1.9 - Gross Profit Margin 39.9% 47
Slide 19: Balance sheet
Financial review BALANCE SHEET A$m 30 Jun’22 30 Jun’21 Δ pcp1 Δ pcp1 Key Insights (A$m) (%) Cash and cash equivalent 5.0 26.0 (21.0) (81%) • Cash utilised in working capital build and investment funding 29.3 12.8 16.5 129% • Receivables driven by huge May/June revenues Trade & other receivables • In
Slide 20: Cash flow
Financial review CASH FLOW A$m FY22 FY21 Δ pcp1 Key Insights (A$m) Reported EBITDA (1.2) 8.2 (9.4) • Deterioration in earnings (promotional approach and cost load) Capital Expenditure (6.0) (2.0) (4.0) • Capex to drive investment in the future – Series 2 Movement in Working Capital (24.6) 0.8 (25.4)
Slide 21: Corporate Snapshot
Corporate Snapshot Pricing Snapshot Major Shareholders Ticker AMS Ellerston Capital 13.3% Share price $0.285 Regal Funds Management 9.1% Shares on issue (m) 222.3 Top 10 shareholders ~40% Market Capitalisation $63.3m Board and Senior Management ~4% Board of Directors Share Price History Chris Tait N
Slide 22: Hardware. Software. Cloud. Q&A
HARDWARE. SOFTWARE. CLOUD. Q&A
Slide 23: Appendices
Appendices 23
Slide 24: Direct sales – cloud services
Group Strategy DIRECT SALES – CLOUD SERVICES Higher quality revenue eCommerce cloud services More dependable recurring revenue which is independent of prevailing supply-chain conditions Simpler logistics Centralized nature of delivering cloud services eases the challenges of making devices and shipp
Slide 25: Cloud services overview
Group Strategy CLOUD SERVICES OVERVIEW Cloud Services Plans ranging from $5 - $40 per month Free Tier 1 Tier 2 Tier 3 $0 $ $ $$ More to plans come per month per month per month per month Included use** Unlimited Unlimited Unlimited Unlimited Video Quality + + ++ +++ Number of Devices supported 1 +
Slide 26: Cloud services customer segments
Group Strategy CLOUD SERVICES CUSTOMER SEGMENTS Cloud Services Plans ranging from $5 - $40 per month Free Tier 1 Tier 2 Tier 3 $0 $ $ $$ More to plans come per month per month per month per month Hobbyist Social Influencer Gamer Streamer Video Freelancer / Journalist Corporate Education House-of-w