ATOMOS LIMITED — Interim / Quarterly Report 2021

Nov 22, 2021

ASX ANNOUNCEMENT ATOMOS LIMITED (ASX:AMS) 23 NOVEMBER 2021

Atomos Confirms FY22 Revenue Guidance of $95m+

Highlights:

• FY22 revenue expected to be in excess of $95m (up 21%+ on FY21) and above consensus forecast, with 1H’22 revenue in excess of $40m despite supply chain issues

• Expected EBITDA margin of 12% – 15% (vs 10.4% in FY21), before ~$1m of opex costs resulting from Videogram investment

Atomos Limited ( ASX: AMS , ‘ Atomos ’ or the ‘ Company ’) is pleased to provide an update on its FY22 revenue and EBITDA guidance. Additionally, the Company announced an investment in a cloud-based video platform, Videogram with information relating to the transaction included as part of a separate ASX announcement.

Atomos CEO, Estelle McGechie said “I’m pleased to announce guidance for the full year FY22, with revenue expected to be in excess of $95m, an increase of at least 21% over FY21 revenue. First half revenue will be in excess of $40m (up 22%+ on pcp), which has been impacted by supply chain challenges which we expect to improve in the second half. We have several exciting new products due for release over the coming months which will further help drive sales in the second half.”

“EBITDA margins are expected to be upward of 12% (FY21: 10.4%) which is after investment in talent, marketing and direct customer engagement to help accelerate revenue growth. Also factored into this EBITDA margin guidance is some upward pressure on variable costs, most notably freight. The forecast EBITDA margin relates to the underlying Atomos business which excludes approximately $1m of operational costs resulting from the investment in Videogram.”

“In effectively managing our supply chain to ensure sufficient stock to meet our sales targets, we have invested in inventory during the first half and as a result will experience a cash outflow.”

Authorised for ASX release by the Atomos Board of Directors.

--ENDS--

For further information please contact:

Estelle McGechie James Cody Simon Hinsley Chief Executive Officer Chief Financial Officer Investor/Media Relations +1 (310) 612-6783 +61 407 048 514 +61 401 809 653 estelle@atomos.com james@atomos.com simon@atomos.com

About Atomos:

Atomos is a global video technology company delivering award-winning, simple to use monitorrecorder 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 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.

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

For more information please visit www.atomos.com

Annual General Meeting

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Agenda November 23

1 Atomos Strategic Pillars

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2 FY21 Financial Recap

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3 FY21 Operational Recap

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4 Strategy

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5 M&A Deal Structure

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6 FY22 Guidance

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Atomos Strategic Pillars

Accessible, affordable, intuitive products & services

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Partnerships with Deep Video the world’s best video Tech tech companies.

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Atomos Showcase The most versatile monitor/recorders on the market

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FY21

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Continued Growth

FY21 : Financials

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77%
Record Sales
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Continued Growth FY21 : Financials

47.6% Margin Growth

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Continued Growth FY21 : Financials

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10.4%

EBITDA

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Continued Growth

FY21 : Financials

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87%

Cash

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Continued Growth

FY21 : Financials

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26mil Strong Balance Sheet

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Continued Growth

FY21 : Operations

	Marketing &	Supply Chain	Strengthened Team	Investing for Growth
	Operations	Management	Expanded team including	Next generation platforms and
		Diligent management	appointment of senior leadership, SVP Sales, SVP	technologies
		Product planning 2-year chip supply	Product, Director of Logistics, Director of Video Production,	Website infrastructure, direct customer engagement
		Buffered inventory by longer-	Director of UX/UI Design	Measuring new markets –
		range forecasts and confirmed	Innovation led with top talent	gaming, corporate, brand
		supply	from the world's best companies
			Promotion from within, building
			corporate culture, investing in
			HR and training

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Strategy

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Atomos Foundation

Production

Record Monitor Playback Control Capture to Hard Drive Switch Metadata

Multicamera Sync

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Atomos Foundation Expansion Opportunity

Cloud Production Streaming Post Production Content Marketplace Delivery Record Monitor Playback Control Capture to Hard Drive Switch Metadata Multicamera Sync

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Videogram

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VIDEOGRAM
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Atomos Connecting the Workflows

Cloud Production Streaming Post Production Content Marketplace Delivery Record Monitor Playback Control Capture to Hard Drive Switch Metadata Multicamera Sync

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Atomos Connecting the Workflows

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Content Marketplace
Production & Streaming
Post Productions
Delivery
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Deal Structure

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INITIAL INVESTMENT OF UP TO USD 2.0M

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M&A Videogram Deal Structure

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OPTION TO ACQUIRE THE COMPANY

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DEAL STRUCTURED

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FY22

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No disruption to supply of major products, some stock outs in first half, improving in second half

Key Products % of Sales J A S O N D J F M A M J Ninja V Ninja V+ Sumo 19 Shogun 7 AtomX Cast Studio Shinobi V Shinobi 7 Relative share of sale No disruptions Out of stock

No disruptions Out of stock

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FY22 Guidance

Full Year

Revenue expected to be in excess of $95m

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Half Year

Revenue expected to be in excess of $40m despite supply chain issues

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Inventory

Continued optimisation of inventory to safeguard supply

EBITDA margin 12% - 15%, before Videogram opex (~$1m) despite:

• Upward pressure on variable costs (freight) ~$1m

• Investment in talent, marketing & direct customer engagement to drive future growth

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Summary

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strong recovery and strong comprehensive and deep growth in FY21 product line to address the “production” aspect of workflow

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continued strengthening strong technology and of partnerships product pipeline

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clear and developing strategy to expand the breadth into streaming and post-production

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expect strong growth in current year

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