ATOMOS LIMITED — Interim / Quarterly Report 2019

Feb 27, 2019

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1H 2019 Results

28 February 2019

Atomos unlockscreativity and profit for video content creators Advanced technology allows faster, higher quality, more flexible productions

Agenda Half Year Results 3 Outlook & Board Update 12 Appendix 18

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“Our VISION is to invent and deliver ground breaking products and disruptive technologies that enhance, simplify and ultimately democratise video content creation”

Atomos – A Snapshot

• Global video technology company that enhances video content creation with products that connect the imaging and computer world together

• Allows video content creators to improve recording quality, save time and maintain greater flexibility and control over the content creation process

• Advanced proprietary technologies underpin the current product suite and will be used to drive future growth into new markets

• Global strategic relationships with leading global tech companies such as: Apple, Adobe and camera makers: Sony, Canon, Panasonic, RED and JVC Kenwood

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• Three key market segments:

• Social: consumers / prosumers who create and share on free, advertisement driven platforms

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• Pro Video: advertising, events, corporate, broadcast and education

• Entertainment: production companies producing high-quality content for TV and cinema usually viewed on subscription streaming platforms

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Capital Structure (as of 27 Feb. 2019) Major Shareholders %
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Ticker AMS Share Price $0.80 Shares on Issue (m) 152.0 Market Capitalisation (m) $121.6 Cash Balance ($m)1 $5.2 Enterprise Value ($m) $116.4 1Calculated from 1H’19 Balance Sheet	Ms Claire Louise Young2 12%
	Ellerston Capital Ltd 11%
	Domazet FT3 P/L 11%
	Common Sense Computing P/L 8%
	Imagination Technologies Ltd 7%
	Top 20 79%
	Board & Management 22%

2 Related Party to Board Member (Jeromy Young)

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Share Price History
$1.0
$0.9
$0.8
$0.7
$0.6
$0.5 IPO Share Price: $0.41
$0.4
Share Price
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© Atomos 2019. | 1H’19 Results

Global Operations

Offices in major global locations and strong sales channels

• 77Staff Globally*

• 10 Offices in 7 Countries

• Strong Global SalesChannel

• Broad retailer and reseller network in eachregion

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1H’19 Sales
byRegion
PORTLAND LONDON
PARIS
NEWYORK FRANKFURT Asia
LOSANGELES TOKYO 21%
BEIJING
US
SHENZHEN
EMEA 53%
26%
MELBOURNE
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© Atomos 2019. | 1H’19 Results 5

• As of 31 December 2018

Target Markets – Current & Future

Atomos’ growing product portfolio will address a US$10B camera equipment market[1]

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Content
Social Pro Video Entertainment
Creation
Camera
Equipment Phone & PhotoCameras Pro Video Cameras Broadcast, TV & Cinema
NINJA
Atomos
Products SHOGUN
SUMO
NEW MARKETS NEW MARKETS
Social Entertainment
Future
Markets
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Expansion into growing Social & Entertainment video content markets – Double core product range in 2 years

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© Atomos 2019. | 1H’19 Results

1 CIPA Report, 2017

Rapidly Growing Markets

Social Content

Accessibility of new social media platform allows individuals to produce, share & monetise their content

• New Technology is allowing Everybody to create quality video content

• Growing advert driven video capable platforms allow instant mass sharing of video

• Content creators have platforms to build significant followings & monetise their content

• DanTDM (YouTube) – US$16.5m earnings in FY17

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1 Boston Consulting Group, “The Future of Television”, 20 September 2016

Pro Video Content

Market wide increase in video-focused corporate marketing, advertising, event and content creation

• US$135B[1] 2017 spend on US digital video marketing

• Advertisers and publishers now ‘pivoting to video’ for brand exposure and marketing

• ~$20k ave. estimated spend in 2017 by US businesses on video marketing[1]

• Redefined Video Marketing

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• Create great, exciting content that audiences actively seek (Stratos Jump)

• – Redbull use Atomos products

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• 1 Magisto Report, Oct 2017 – The Modern Marketing Dilemma and the State of Business Video 2 Juniper Research, Future Digital Advertising AI, Ad Fraud & Ad Blocking

Entertainment Content

Increased original content by new online streaming platforms is driving demand for enhanced content

• Growth of on demand streaming has driven investment in original content

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• Netflix, Amazon and Apple are expected to grow their combined spend for original content from US$5B in 2017 to >US$23B in 2022[1]

• Massive growth in production of scripted TV Shows[2]

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• 1 Loup Ventures - Research, Gene Munster, Nov 21 2017

• 2 FX Network Research – Adweek.com article “There’s No Stopping Peak TV…”

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© Atomos 2019. | 1H’19 Results

1H’19 Executive Summary (ending 31 December 2018)

1H’19 Revenue

$24.2m 32% pcp 1H’19 Gross Profit

$10.5m 26% pcp 1H’19 EBITDA $0.7m 194% pcp

Achievements during 1H’19

• Completed development of Ninja Platform, launched first monitor recorder product (Ninja V) in September 2018

• Growth drivers:

• On time new product launch (Ninja V)

• Higher than forecast camera bundle sales across multiple products (Ninja V, Shogun Inferno)

• Ninja V continues Atomos’ push into the rapidly growing ‘Social’ segment of the video market

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© Atomos 2019. | 1H’19 Results

Pro Forma Income Statement

	Pro Forma (A$m) 1H'18 Revenue 18.4 COGS (10.0) Gross Profit 8.4 Gross Profit Margin 45.6% Wages & Salaries (3.1) Marketing (1.2) General & Administration (1.3) Other (0.6) Operating Expenses (6.3) EBITDA (pre R&D) 2.1 R&D Expenses (1.8) EBITDA 0.2	1H'19 24.2 (13.7) 10.5 43.4% (3.5) (1.8) (2.1) (0.7) (8.0) 2.5 (1.7) 0.7	∆pcp 32% (38%) 26% (12%) (50%) (56%) (9%) (28%) 18% 5% 194%

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Pro Forma Revenue Growth ($m)
50
40 $35.6m
$31.1m
$30.5m
30 $17.3m
H2
20
$24.2m
10 $18.4m H1
H1
-
FY16 FY17 FY18 H1 FY19
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Key Insights:

• 1H’19 sales of $24.2m, up 32% pcp, driven by:

• Strong sales of Ninja V which was released in September 2018

• Product bundling with major camera manufacturers

• Gross Profit of $10.5m, up 26% pcp

• GP margin lower due to higher than anticipated component costs associated with the Ninja V which was accentuated by strong sales of Ninja V

• Management have addressed these component costs and envisage monthly run-rate GP margin in line with prospectus forecast by May/June 2019, however full year FY19 GP margin expected to be lower than FY19 prospectus forecast

• EBITDA of $0.7m, up 194% pcp

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© Atomos 2019. | 1H’19 Results

Pro Forma Balance Sheet

	Pro Forma (A$m) 1H'19 Cash and cash equivalents 5.2 Trade and other receivables 6.1 Inventories 11.1 Other assets 2.6 Plant and equipment 0.9 Intangible assets 8.2 Total assets 34.1 Trade and other payables (10.9) Provisions (0.6) Borrowings 0.0 Total liabilities (11.5) Net assets 22.6 Issued capital 44.3 Reserves 1.9 Accumulated losses (23.6) Equity 22.6

Key Insights:

• Strong balance sheet with $5.2m cash and zero debt

• Access to a $1.5m EFIC working capital facility if required

• Inventory levels increased reflecting:

• Stronger than anticipated Ninja V sales

• Stock build up of components ahead of Chinese New Year (given various lead times)

• Trade payables also reflects a build up of components (given various lead times) ahead of the Chinese New Year

• $14.4m of tax losses and R&D tax credits available to offset future tax payable (off balance sheet)

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© Atomos 2019. | 1H’19 Results

Statutory Cash Flows

Statutory Cash Flows (A$m) 1H'19 Operating activities Receipts from Customers 23.2 Payments to suppliers and employees (27.6) Income taxes paid (0.1) Net cash used in operating activities (4.5) Investing activities Payments for PP&E (0.2) Payments for intangible assets (1.0) Net cash used in investing activities (1.2) Financing activities Proceeds from issue of ordinary shares 6.0 Payment for equity raising costs (1.0) Proceeds from issue of convertible notes 6.5 Repayments of borrowings (1.6) Net cash inflow from financing activities 9.8 Net change in cash and cash equivalents 4.1 Cash and cash equivalents, beginning of period 1.4 Cash and cash equivalents, end of period 5.6

Key Insights:

• Net cash flows in line with prospectus forecast

• Growth in working capital driven by successful launch of Ninja V:

• Build in inventory to satisfy demand; and

• Debtors growth resulting from strong sales

• Working capital to reduce over 2H’19

• Payments for intangibles relate to completion of the Ninja Platform development

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© Atomos 2019. | 1H’19 Results

– Redshark News on new Shinobi monitor

Outlook - Achievements Post End 1H’19 + Full Year FY19

Achievements post end 1H’19

Full Year FY19 Outlook

• Finalised licence agreement with RED.com LLC

• Released 5” Shinobi monitor-only product in February 2019 - continuing drive into the ‘Social’ market

• Appointed Stephen Stanley and Bradley Whitcomb as Non-Executive Directors

• Expect stronger sales than forecast in prospectus lodged 30 November 2018

• Improving GP margin in 2H’19 vs 1H’19, however overall FY19 GP margin expected to be lower than FY19 prospectus forecast

• Comfortable with forecast FY19 Pro Forma EBITDA guidance of $0.3m given in the prospectus

13

© Atomos 2019. | 1H’19 Results

Outlook – Growth Initiatives for 2H’19 and beyond

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Growth Drivers Description Progress
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ok – Growth Initiatives for 2H’19 and beyond
Growth Drivers Description	Progress
	✓Released flagship 5” Ninja V recorder/monitor ✓Released Shinobi 5” monitor only in Feb. ’18 ✓Released 2 new products targeting the growing ‘Social’ segment with strong market acceptance ✓Announced ProRes Raw recording on Ninja V and bundled offering with Nikon camera ✓Licence agreement entered into with RED ✓Hired two former Apple Final Cut Pro X software engineers ✓Announced two new Board members, Stephen Stanley & Bradley Whitcomb
Growing Product Portfolio • Leverage tech portfolio to develop new future products with goal to double range over next two years
Expand into New Adjacent Growth Segments • Expand further into adjacent high growth market segments (leveraging existing sales channels) - Social & Entertainment
Evolve Strategic Relationships • Continued relationships / partnerships with global camera makers and software video editing providers
Continue to Seek exceptional Management & Talent • Seek out exceptional talent globally to enable continued development of leading content creation products

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© Atomos 2019. | 1H’19 Results

Board Update

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Chris Tait

Non-Executive Director Chairman

Director since 2017

• 25+ years experience advising local and multinational companies both private & public

• Co-Founder and Managing Director of Henslow

• Previously, Director of Strategy for WH Smith PLC and CFO of WH Smith’s APAC operations

• Chairman of The BlueRock and Neo Products

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Jeromy Young Executive Director

Co-Founder & CEO

Director since 2009

• 20+ years technology & management experience

• Previously global BDM for Blackmagic growing sales from $7m to $30m in two years

• Prior to Blackmagic, global BDM Director for Canopus (GV) Japan growing sales from $5m to $60m in four years

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Sir Hossein Yassaie Non-Executive Director

Director since 2016

• 35 years in specialised R&D and semiconductors

• Founder & CEO of Imagination Technologies Plc for 18 years, growing the company from £15m to £1bn+

• Received knighthood at 2013 New Year Honours for services to UK Technology

Recent Board Appointments – 1 February 2019

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Stephen Stanley Non-Executive Director

Bradley Whitcomb Non-Executive Director

Director since 2019

Director since 2019

• 25+ years experience across a number of senior management roles at leading global organisations

• 25+ years experience in the telecommunications and technology sectors across North America, Japan and Australia

• Previously CEO of Mayne Logistics

• Spent five years in senior Marketing, Corporate Development and Board roles in Vodafone’s Japanese operations

• Previously, Director for Corp. Development for Toll Holdings, overseeing its development into a leading international logistics player

• Chief Customer Officer of NBN Australia

Neil Chatfield

Advisor to the Board

Stepped down as a NED on 1 February 2019 (as outlined in the Prospectus), however will remain as an Advisor to the Board

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© Atomos 2019. | 1H’19 Results

• Videomaker.com on SUMO19

Contacts

For further information on this presentation, please contact:

James Cody	Matthew Wright
Chief Financial Officer	Media relations
+61 3 9999 5908	+61 451 896 420
james.cody@atomos.com	matt@nwrcommunications.com .au

About Atomos

Atomos is a global video technology company delivering award-winning, simple to use monitor-recorder content creation products. These products give content creators across the rapidly growing social, pro-video and entertainment markets a faster, higher quality and more affordable production system.

Atomos’ range of seven products take images directly from the sensor of all major camera manufacturers, then enhance, record and distribute them in high-quality formats for content creation using the major video editing software programs. Since being founded in 2010, Atomos has established strategic relationships with key technology providers within the ecosystem including Apple, Adobe, Sony, Canon, Panasonic, Nikon and JVC Kenwood.

Key upcoming Tradeshows / Conferences:

Name	Location	Dates
Photography Show	Birmingham	16 - 19 March
Games Developer Conference	San Francisco	18 - 22 March
NAB Show 2019	Las Vegas	8 - 11 April
KOBA	Seoul	22 - 25 May
Cine Gear	Los Angeles	31 May – 1 June
Media Production Show	London	11 - 12 June
Electronic Entertainment Expo (E3)	Los Angeles	11 - 13 June
Broadcast Asia	Singapore	18 - 20 June
IBC	Amsterdam	12 - 17 September

Key Tradeshow

Atomos is based in Australia with offices in the USA, Japan, China, UK and Germany and has a worldwide distribution partner network.

For more information please visit www.atomos.com

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© Atomos 2019. | 1H’19 Results

“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

What We Improve

Atomos unlocks the creative and commercial potential of digital cameras

Despite the advanced technology of modern digital cameras, users are limited by:

• Heavily compressed recorded data

• Not designed for computerworkflows

• Short record times

• Expensive media

• Small lower resolution monitors

• Complex menus and buttons

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Lower
quality
monitor
Complex
menus
Short
record
Expensive
times
media
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© Atomos 2019. | 1H’19 Results

How We Do It

Atomos devices take images directly from the camera’s sensor, then enhance, record and distribute them for content creation

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© Atomos 2019. | 1H’19 Results

Content Creation Workflow

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CAPTURE PROCESS & ENHANCE
From the sensor of Atomos products enhance content creation,
all major camera manufacturers quality and creativity
Atomos’ devices are
compatible with all levels
of content creation
& equipment
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FINISH & DELIVERY
Edit, Colour Grade, Titles,
Graphics Finish in Post
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© Atomos 2019. | 1H’19 Results

Product Suite

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4K Monitor Recorders Production / Studio Broadcast, Pro AV, Accessories & O
Ninja Range Shogun Range SUMO Range Shogun Studio + Converters + Accessories
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• Larger format 19” monitor recorder

• HDMI only

• HDMI & Quad SDI inputs

Shogun Studio

• Broad market application due to • Broad market application due portability to portability

• targeting studio usage

• Rack mount 4K monitor recorder solution

• Quad SDI & HDMI in/out

• Dual 7” screens with touchscreen interface

• Converters

• Both 5” and 7” screen options • 7” high brightness screen

• Record ProRes/ProRes RAW, Converters

• • Record ProRes®, DNxHR at 60p • Record ProRes, DNxHR at 60p DNxHR, among others • Range of 4K converters frame rates frame rates • SDI to HDMI or vice versa

• • AtomHDR monitoring • ProRes RAW capability • Includes recently released 5” • AtomHDR monitoring Accessories (Cables, Caddies & Adaptors) Shinobi monitor only • Range of accessories to compliment monitor recorder range

• • Media caddies (SSD)

• Social / Pro-Video Segment P ro-Video / Entertainment Pro-Video / Entertainment Various

• SDI to HDMI or vice versa

• Accessories (Cables, Caddies & Adaptors)

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© Atomos 2019. | 1H’19 Results

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We have worked hard to ensure our Brand Strength matches our Product Strength

Senior Management

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Jeromy Young

Co-Founder & CEO Location: Australia

• 20+ years technology & management experience

• Previously global BDM for Blackmagic growing sales from $7m to $30m in two years

• Prior to Blackmagic, global BDM Director for Canopus (GV) Japan growing sales from $5m to $60m in four years

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Stephan Kexel

Global Sales Director

Location: Germany

• 25+ years experience in business development and sales primarily focused in the video and electronics industry

• Previously, Senior Manager of EMEA channel sales for Grass Valley

• Prior to Grass Valley, General Manager of Canopus GmbH

James Cody Chief Financial Officer Location: Australia

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• 20+ years financial & accounting experience in both private & public businesses

• Previously CFO and Principal at Henslow, a corporate advisory firm in Melbourne

• Prior to Henslow, CFO at Funtastic, an ASX listed supplier of children’s products with revenue of $200m+

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Naofumi Yoneda

Chief Design Officer Location: Japan

• 20+ years industrial design experience in consumer electronics, professional cameras & broadcast equipment

• Previously, acting Chief Art Director at Sony Corporation developing products for the Professional Solution Business Division

• Prior to that role, Naofumi was Art Director designing consumer products (cameras, portable & home audio, TV, laptop)

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Trevor Elbourne Chief Technology Officer Location: Australia

• 23+ years experience as a hardware engineer with particular focus on IC and ASIC design

• At Atomos Trevor started as a Senior Hardware Engineer before moving to Director of Systems Engineering

• Previously, Engineering and Hardware manager at Canon and various electronic firms

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Frankie Liu

Global Production Manager Location: China

• 23+ years experience in electronics production and quality control – currently leads Atomos’ production operation in China

• Previously, General Manager for a high-tech electronics manufacturer based in China

• Worked at both Mobile Tech & Seiko Instruments in senior positions responsible for production & process control

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© Atomos 2019. | 1H’19 Results

A Few Key Terms Explained

“ 4k60p ”

Refers to: Resolution / Frame Rates

• Resolution refers to the number of pixels displayed within each frame - simplistically, greater pixels (higher resolution) results in a sharper, clearer and more detailed image (video)

Standard Resolution (W x H)	Standard Resolution (W x H)
Standard Definition (SD)	720 x 480
Full High Definition (HD)	1920 x 1080
4K (UHD)	3840 x 2160
8K	7680 x 4320

• 4K contains 8 million pixels compared to 2 million pixels for Full HD

• The ‘p’ stands for progressive scanning and is increasingly become the standard over ‘i’ (or interlaced) which was popular in the early TV era

• Frame Rates refers to the frequency (no. of frames) that an image is recorded per second - the higher the frame rate the smoother the video appears

• There is a often a trade off between resolution & frame rate depending on application, setting, budget and editing software

Frame rates p/s (fps) Usage	Frame rates p/s (fps) Usage
24 / 30	Standard for home movies
60	Suited for faster paced video, e.g. sports
240	Slow motion video

“ ProRes recording”

Refers to: Recording Format

• Recording Format or “Codec” refers to how a video is captured & recorded by the camera or recording device

• The codec (abbreviation for Coder/Decoder) describes the type of compression used to record a video - the codec encodes a video stream thereby making the video file smaller & easier to manage/transport to editing software

• The editing software (assuming the codec is supported) is then able to decode (unpack) the video file based on the rules set by that codec, providing the user access to all the video information during post production (editing)

• For professionals some of the main codec’s include: − ProRes or ProRes RAW → Apple

• DNxHR → Avid

• CinemaDNG → Adobe

• For simplicity, we are only referring to codec’s typically used by video professionals – that is users who require video to be edited via an editing suite in post production

• For ‘amateur’ video requiring only minimal editing with the aim of uploading to a video streaming site other codec’s may be more applicable (e.g. H.264)

• RAW refers to uncompressed video footage taken directly from a camera's sensor. Although it provides the highest level of colour and image detail, it requires huge data capability and therefore is impractical for most users

“ 1,500 Nits brightness & HDR”

Refers to: Screen Brightness (Nits) / HDR

• Nits refers to a measurement of light that a screen sends to your eyes (luminance) within a given area – the greater Nits the more light output the screen can display

Tabled below are few examples for comparison:

Device Nits	Device Nits
iPhone X	625
Galaxy Note 8	1,200
Shogun Inferno	1,500
Samsung QLED Q9F TV	Up to 1,800

• HDR (High Dynamic Range) refers to the brightness range of an image and aims to present a similar range of colour and brightness to that experienced by the human eye

• In HDR video each pixel can capture a much wider and more granular range of light (whites appear whiter and darks appear darker)

• Atomos invented the ability to view (on an in-field monitor) what HDR video will look like once it has been through post-production

• Prior to Atomos, the only way to ‘approximate’ HDR while shooting in the field was to apply a LUT (colour style filter) to the video image

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© Atomos 2019. | 1H’19 Results

1H’19 Income Statement – Statutory to Pro Forma

Pro forma adjustments to the statutory consolidated statements of profit or loss and other comprehensive income

$ thousand Notes	Actual Forecast
	HY2019 FY2019
Statutory EBITDA	(146) (1,932)
Incremental listed company costs 1	(127) (129)
Financial instruments movements 2	(1,203) 1,770
Employee share plan costs 3	370 131
Transaction costs 4	1,833 448
Pro forma EBITDA	726 288
Statutory loss after tax	(2,292) (3,849)
Incremental listed company costs 1	(127) (129)
Financial instruments movements 2	(472) 1,770
Employee share plan costs 3	370 131
Transaction costs 4	1,833 448
Capital structure 5	675 644
Pro forma loss after tax	(13) (985)

Notes:

1. Incremental listed company costs include ASX listing fees, audit fees, registry costs, board fees and insurance

2. Inclusive of movement in fair value of derivatives and interest attributable to underlying financial liability

3. Accelerated vesting charge

4. 4.Transaction costs - prospectus forecast excluded pre IPO transaction costs ($545k) and recorded a higher proportion of costs ($538k) directly in equity

5. Interest on Convertible Notes and unwinding of capitalised borrowing costs

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© Atomos 2019. | 1H’19 Results

1H’19 Balance Sheet – Statutory to Pro Forma

Statutory historical and pro forma historical consolidated statement of financial position

position
$ thousand Notes	31 December 2018
	Statutory Redeemed Notes payable Pro forma
Current assets
Cash and cash equivalents 1	5,595 (358) 5,237
Trade and other receivables	6,086 - 6,086
Inventories	11,065 - 11,065
Other assets	2,591 - 2,591
Current assets - total	25,337 (358) 24,979
Non-current assets
Property,plant & equipment	871 - 871
Intangible assets	8,245 - 8,245
Non-current assets - total	9,116 - 9,116
Assets - total	34,453 (358) 34,095
Current liabilities
Trade and otherpayables	(10,889) - (10,889)
Borrowings 1	(358) 358 0
Provisions	(544) - (544)
Other financial liabilities	0 - 0
Current liabilities - current	(11,791) 358 (11,433)
Non-current liabilities
Provisions	(64) - (64)
Non-current liabilities - total	(64) - (64)
Liabilities - total	(11,855) 358 (11,497)
Net assets	22,598 - 22,598
Equity
Issued capital	44,293 - 44,293
Share issue reserve	1,549 - 1,549
Foreign currencytranslation reserve	350 - 350
Accumulated losses	(23,594) - (23,594)
Equity- total	22,598 - 22,598

Notes:

1. Remaining balance payable on redeemed convertible notes at IPO, paid in January 2019

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© Atomos 2019. | 1H’19 Results

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 disclosure announcements filed with the Australian Securities Exchange (ASX), available at www.asx.com.au.

The information in this Document is not intended to form the basis of any investment decision in relation to the Company or its assets and should not be considered as a recommendation to the Recipient to acquire securities in the Company. This Document is not a prospectus, profile statement or disclosure document and does not constitute an offer or invitation to acquire securities or otherwise invest in the Company, and no agreement to subscribe for securities will be entered into on the basis of this Document.

No representation or warranty, expressed or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company, any of their respective officers, servants, agents or advisers (collectively “Limited Parties”) as to or in relation to the accuracy, reasonableness, completeness or reliability of the information in this Document or any other written or oral information made available to any Recipients or their advisers. Any liability therefore is hereby expressly disclaimed. In particular, no representation or warranty is given as to the achievability or reasonableness of any future projections, management estimates or plans, prospects, returns or forecasts.

To the fullest extent permitted by law, the Limited Parties will not have any responsibility or liability for any loss or damage (whether foreseeable or not), however arising (including as a result of negligence), in relation to or in connection with the provision of this Document, the Recipient’s or any other person’s purported reliance on this Document, the failure to provide information of which any of the Limited Parties becomes aware or any errors in or omissions from this Document.

None of the Limited Parties makes or gives any representation, warranty or guarantee, express or implied, that the information in this Document is accurate, current, reliable or complete, has been or will be audited or independently verified, or that reasonable care has been taken in compiling, preparing or furnishing it. Various statements in this Document constitute statements relating to intentions, future acts and events including forecast financial information (“Forward Looking Statements”). Forward Looking Statements involve subjective judgment and analysis, known and unknown risks, uncertainties and other important factors that may cause those future acts, events and circumstances to differ from the way or manner in which they are expressly or impliedly portrayed herein. The Limited Parties do not make or give any representation, warranty or guarantee, express or implied, that any Forward Looking Statements will be achieved or proven correct, or that any assumptions or projections on which the Forward Looking Statements are based are reasonable. No historical financial information, forecast financial information, estimates or projections contained in this Document or any other financial information derived from that information, can be relied upon as a promise or representation, as to the past, present or the future. Past performance is not necessarily a guide to future likelihood of achievement or reasonableness of any Forward Looking Statement, forecast financial information or other forecast.

The Limited Parties do not undertake any obligation to (and expressly disclaim any obligation to) provide the Recipients with access to any additional information or to correct any inaccuracies herein which may become apparent or to disseminate any updates or revisions to any Forward Looking Statements in this Document to reflect any change in expectations in relation to any such statements or any change in events, conditions or circumstances on which any such statement is based.

This document also contains statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data pertaining to the Company's business and markets. Such information is generally based on independent market and industry data or research. The Company has not independently verified, and cannot give any assurances as to the accuracy and completeness of the information sourced from market and industry data or research contained herein. Accordingly, the accuracy and completeness of such information is not guaranteed. There is no assurance that any of the forecasts or projections contained in the independent market and industry data or research will be achieved. Forecasts and projections involve risks and uncertainties and are subject to change based on various factors. You should note that market data and statistics are inherently predictive and subject to uncertainty and not necessarily reflective of actual market conditions.

Neither the receipt of this Document by any person nor any information contained in it or supplied with it or subsequently communicated to any person in connection with a proposed investment in the Company constitutes, or is to be taken as constituting, the giving of investment or financial product advice (or any other advice) to any such person. Each such person should make their own independent assessment of the merits or otherwise of investing in the Company and should seek their own professional advice in respect of any future investment opportunity and not act on the basis of any matter contained in this Document. In providing this Document, the Company has not considered the objectives, financial position, taxation situation or other needs of any particular Recipient.

The distribution of this document in jurisdictions outside Australia may be restricted by law. Persons who come into possession of this document who are not in Australia, should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. In particular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States.

Non-IFRS financial measures

Recipients should note that certain financial data included in this Document is not recognised under the AAS, and is classified as ‘non-IFRS financial information’ under Regulatory Guide 230 ‘Disclosing non-IFRS financial information’ published by ASIC. The Company believes that this non-IFRS financial information provides useful information to users in measuring the financial performance and condition of Atomos. The non-IFRS financial measures do not have standardised meanings under AAS, and therefore may not be comparable with similarly titled measures presented by other entities, nor should these be interpreted as an alternative to other financial measures determined in accordance with AAS. Investors are cautioned not to place undue reliance on any non-IFRS financial information, ratios and metrics included in this Document.

Non-IFRS information descriptors:

• EBITDA (before R&D expenditure) is earnings before research and development expenditure, interest, taxation, depreciation, amortisation and impairment charges;

• EBITDA is earnings before interest, taxation, depreciation, amortisation and impairment charges;

• EBIT is earnings before interest, taxation and impairment charges;

• Working capital is defined by the Company as trade and other receivables, inventory and other current assets less trade and other payables and other current liabilities;

• Net cash flows from operations: the operating cash flows generated by the Company calculated as EBITDA excluding non-cash items and allowing for changes in working capital; and

• Net cash flows before financing activities: being net cash flows from operations less capital expenditure and other investing expenditure.

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© Atomos 2019. | 1H’19 Results

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© Atomos 2019. | 1H’19 Results