ATOMOS LIMITED — AGM Information 2019

Nov 28, 2019

==> picture [85 x 84] intentionally omitted <==

Annual General Meeting 29 November 2019

Chairman’s address to shareholders

--------------------------------------------------------------------------------------------------------------------------------------

Dear Fellow Shareholders,

On behalf of Atomos’s Board and Management, I’m delighted to report that the financial year ending 30 June 2019 marked an extremely successful period for your company, where we:

• Achieved substantial growth in both Revenue and EBITDA,

• Invested in substantial long-term innovation, and

• Continued to build and expand the Atomos ecosystem.

Jeromy Young, the company’s CEO and founder will expand on those points in a few minutes in his presentation. Firstly, I would like to recap on a few highlights for the year:

The key financial highlights for FY19 included:

• Turnover of $53.7m, which was $11.5m ahead of prospectus forecast and $18.1m (50%) up on the previous year

• EBITDA of $1.78m, which was $1.49m ahead of our prospectus forecast and$1.56m ahead of last year

• This EBITDA was after expensed R & D expenditure of $4.1m. We also invested a further $3.1m in capitalised R & D, resulting in total R & D of $7.2m, which is in line with our ongoing investment in new technology assets.

• Strong cash management. Due to the company’s strong growth we invested more cash in operating activities than in our prospectus at $3.3m (versus prospectus of $1.6m). However, this was only an increase of 10% on the previous year, despite the aforementioned sales growth of 50%.

On the back of the year’s outstanding results, the Company’s share price has performed strongly since we listed in December 2018 at 41c, in what was then, an extremely challenging public market for raising capital.

We raised further funds in July of $7.5m at $1 to strengthen our balance sheet as growth outstripped our expectations and again in October of $22.5m at $1.30 to finance the acquisition of Time Code Systems and to be in a position to capitalise on further growth opportunities as appropriate and as they arise.

Year to date performance is generally in line with our full year expectations and with a suite of great technology assets, world class talent and the aforementioned strong balance sheet, the long-term opportunity is strong.

We thank all our shareholders for their ongoing support as we continue with our vision of becoming a leading global video technology company, forever democratising the rapidly expanding content creation universe.

MELBOURNE[• ] TOKYO[• ] BEIJING[• ] LONDON[• ] FRANKFURT[• ] PARIS[• ] BROOKLYN[• ] PORTLAND[• ] LOS ANGELES

==> picture [85 x 84] intentionally omitted <==

Jeromy will talk in a minute about the way that Atomos is expanding its ecosystem to be at the very centre of that universe.

We say thank you to all our strategic partners, be they camera manufacturers, software platform providers, distributors or others for their support and collaboration in building that ecosystem.

I would like to thank my fellow board members for their contributions and commitment over the course of the year, as well as acknowledging the support of Neil Chatfield as special adviser. We will look to expand the board with an additional non-executive in the first half of next year.

We of course say a very big thank you to all our staff and the management team for all their hard work and dedication in what has been a very busy year.

Finally, we say thank you to all our customers be it the youtuber using a Shinobi, a film studio using a Sumo or one of our commercial partners licensing our chip or our software.

==> picture [94 x 42] intentionally omitted <==

Chris Tait Chairman

MELBOURNE[• ] TOKYO[• ] BEIJING[• ] LONDON[• ] FRANKFURT[• ] PARIS[• ] BROOKLYN[• ] PORTLAND[• ] LOS ANGELES