ATOMOS LIMITED — Interim / Quarterly Report 2021

Feb 14, 2021

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Atomos unlocks creativity and profit for video content creators Democratising creativity in the video age Advanced technology allows faster, higher quality, more flexible productions

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“
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Inventing and delivering ground-breaking technologies and products that democratise the creativity of content in the video age

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Agenda

1H FY21 Summary 3 > Chris Tait, Exec Chair Financial Review 7 > James Cody, CFO Group Strategy & Outlook 13 > Chris Tait, Exec Chair Q&A 22 Appendices 25

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© ATOMOS 2021 | 1H FY21 RESULTS 2 |
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1H FY21 Summary

Sales

Margin

EBITDA Cash Strong Balance Sheet Scale Up Structure

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1. EBITDA excludes a one-off gain of $0.5m resulting from the renegotiation of the Melbourne head office lease
2. PCP: prior corresponding period
© ATOMOS 2021 | 1H FY21 RESULTS 3 |
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1H FY21 Summary

COVID

Global environment

Organisation

Scale-up

Momentum

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•
© ATOMOS 2021 | 1H FY21 RESULTS 4 |
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1H FY21 Summary

ProRes RAW

ProRes RAW Enabled Camera Market

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43
39
28 28
26
24
21 22 22
19
489
12 12 12 13
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RAW Enabled Cameras

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RAW Enabled Cameras Monthly ProRes RAW Activations
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Agenda

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|||
|---|---|
|1H FY21 Summary|
|3|
|> Chris Tait, Exec Chair|
|Financial Review|
|7|
|> James Cody, CFO|
|Group Strategy & Outlook|
|13|
|> Chris Tait, Exec Chair|
|Q&A|22|
|Appendices|25|

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© ATOMOS 2021 | 1H FY21 RESULTS 6 |
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1H FY21 Financial Summary (For the 6 months ending, 31 December 2020)

Sales

Gross Profit / Expenses Earnings Cash Flow

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1. Previous corresponding period
2. Excludes a one-off gain of $0.5m resulting from the renegotiation of the Melbourne head office lease
© ATOMOS 2021 | 1H FY21 RESULTS 7 |
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1H FY21 Financial Snapshot

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Pro Forma Revenue ($m) [1] Revenue by Market Segment (FY20 vs. 1H FY21)
54.0 1H'20 1H'21
44.4
$2.6m Social $2.9m
35.6 29.7 2H 11.8 $6.5m Pro Video $7.0m
31.1 2H
Entertainment
17.3 32.6 32.8
16.7 2H 1H 1H
2H
24.2
18.4
1H
14.4 1H 1H
$23.4m $22.6m
FY17 FY18 FY19 FY20 1HFY21
Pro Forma EBITDA ($m) [1] H1 FY21 Revenue by Region
3.0
1.6
0.2 Asia
FY17 FY18 FY19 FY20 1HFY21 24% US
43%
EMEA
33%
(4.5)
(7.1)
1 1H17, 2H17, 1H18 & 2H18 Unaudited
© ATOMOS 2021 | 1H FY21 RESULTS 8 |
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1H FY21 Financials - Pro Forma Income Statement

Pro Forma (A$m)	1H'20		1H'21		∆pcp
Revenue COGS	32.6 (17.7)		32.8 (18.0)		0.1 (0.3)
Gross Profit	14.9		14.7		(0.2)
Gross Profit Margin Variable Operating Expense Wages & Salaries Marketing General & Administration Other Operating Expenses	45.7% (2.0) (4.4) (2.7) (2.7) 0.0		44.9% (2.4) (4.6) (0.9) (1.8) 0.1		(0.4) (0.1) 1.8 0.9 0.1
	(11.9)		(9.6)		2.3
EBITDA(pre R&D)	3.0		5.1		2.1
R&D Expenses	(2.1)		(2.1)		(0.0)
EBITDA	1.0		3.0		2.1
Depreciation & Amortisation	(1.6)		(1.5)		0.1
EBIT	(0.6)		1.6		2.2

Key Insights:

• Record 1H’21 revenue of $32.8m up slightly on pcp, 176% up on 2H’20

• Gross profit margins down sightly due to tail of COVID promotion in July (impacted 1H’21 gross profit by 0.7%)

• Variable operating expenses up slightly, attributed to higher freight costs due to COVID

• Fixed operating expenses down $2.5m (21%) due to:

  • Employee cost savings, offset by higher FY21 incentive accruals

  • Significantly reduced trade show activity

  • Lower travel and occupancy costs

  • These savings achieved whilst maintaining R&D expenditure

• Pro forma EBITDA of $3.0m[2] , a record result, $2.1m (210%) up on pcp

• Previous corresponding period

• Excludes a one-off gain of $0.5m resulting from the renegotiation of the Melbourne head office lease

© ATOMOS 2021 | 1H FY21 RESULTS

9 |

1H FY21 Financials - Pro Forma Balance Sheet

Pro Forma (A$m)	30-Jun-20		31-Dec-20
Cash and cash equivalents Trade and other receivables Inventories Other assets Plant and equipment Right of use asset Intangible assets	18.8 4.7 16.8 2.6 2.7 9.0 25.1		23.3 6.1 15.2 5.4 2.6 2.9 25.3
Total assets	79.6		80.8
Trade and other payables Borrowings Provisions Lease liabilities Deferred tax liability	(10.7) (0.1) (0.9) (9.4) (1.0)		(15.5) (0.1) (1.4) (3.1) (1.0)
Total liabilities Net assets	(22.2)		(21.2)
	57.4		59.6
Issued capital Reserves Accumulated losses	101.5 1.0 (45.1)		101.7 1.3 (43.4)
Equity	57.4		59.6

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© ATOMOS 2021 | 1H FY21 RESULTS 10 |
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1H FY21 Financials - Cash Flows

Cash Flows (A$m)	1H'20		1H'21
EBITDA Gain on modification of lease Transaction costs Other non-cash items Taxation Movements in Working Capital: Inventory Trade and other receivables Other assets Trade and otherpayables Movement in WorkingCapital	(0.3) 0.0 1.2 0.1 (0.1) (5.3) (5.1) (0.8) 3.4		3.5 (0.5) 0.0 0.3 (0.1) 1.7 (1.4) (2.8) 5.4
	(7.7)		2.8
Operating Cash Flow	(6.8)		5.9
Capex Interest Lease liabilities Financing/Investing	(4.7) (0.2) (0.3) 23.0		(1.1) (0.2) (0.3) 0.2
Total Cash Flow	10.9		4.5
Cash and cash equivalents, beginningofperiod	5.1		18.8
Cash and cash equivalents, end ofperiod	16.0		23.3

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© ATOMOS 2021 | 1H FY21 RESULTS 11 |
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Agenda

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|||
|---|---|
|1H FY21 Summary|
|3|
|> Chris Tait, Exec Chair|
|Financial Review|
|7|
|> James Cody, CFO|
|Group Strategy & Outlook|
|13|
|> Chris Tait, Exec Chair|
|Q&A|22|
|Appendices|25|

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© ATOMOS 2021 | 1H FY21 RESULTS 12 |
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Where We Came From

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1. The imaging world refers mainly to Japanese camera makers whilst the computer world refers mainly to US software companies
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Building & Supporting Ever-Expanding Video Ecosystem

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© ATOMOS 2021 | 1H FY21 RESULTS 14 |
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Our Unique Offer

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Video
Key Products Industry Technology
Standard
2 030
Rapidly Increasing
More Consumption &
More Products More Standards
Technology Production of High-
2025 Quality Video
Shogun S2
Sumo S2
Internet
Neon S2
Streaming Series 2 Platform
Studio S2
NDI (S2)
Ninja Stream
HDMI 2.1 V3.0 Video Soc
Apps
2020
Ninja V TCS Sync Series 1 Platform
AtomX Modules ProRes RAW RAW Codec
Live Streaming
Neon HDMI 2.0 Zone Backlight
Social Media
Sumo SDI 12G HDR Screen
Shogun 4K60 Dolby Vision V2.0 Video Soc (Facebook Live,
2015 Instagram, TikTok)
COVID Video
Phenomenon
ProRes (Zoom, MS
Shogun ProRes/DNX
DNX Teams, Webex)
Samurai Codec Video Streaming Atomos
SDI
Ninja 1/2 HDMI V1.0 Video SoC (Netflix, YouTube) Markets
2 010
Pro Video Social Entertainment Gaming Other industries
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Scalability from Expansion of Atomos Series 2 Technology Platform

Solid Base

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Adoption of Single Unified Technology Platform for all Products

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Introduction of Atomos App Marketplace

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© ATOMOS 2021 | 1H FY21 RESULTS 16 |
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Best of breed Post Production Edit Software Tools Apple, Adobe, Avid

Best of breed Camera Makers

EDIT

IMAGE CAPTURE Apple, Sony, Canon Adobe, Avid Panasonic, Nikon, Fujifilm Olympus, CONNECTIVITY Sigma, Z Cam Live Streaming Remote Production Opportunity AI Cloud Services Atomos App CAPTURE Marketplace Software Image Processing Video Record, Monitor, Play Simplify & Automate Process Sync & Connect LICENCING Switching VIDEO Cameras Audio/Video Sync SOURCES Gaming Atomos Video Tech Presenting Highly evolved Opportunity Atomos Sync Tech simple and Atomos IC Tech rewarding user experience

Outlook

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- - - - - 0 – 6 Months - - - - > - - - - - 6 – 18 Months - - - - > - - - - - 18 Months + - - - - >
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• • •
ProRes New categories (e.g. Gaming) Storage & analysis
• • •
Software 3 [rd] party software Licensing
• • •
Incremental product launches Potential M&A Potential M&A
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Outlook – Potential M&A

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Technology Standards

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Complimentary Tech

New Complementary Markets

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•
•
Services
•
Geographies
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Atomos Board & Senior Management

Board Executive Team Average tenure of the Board and senior Chris Tait Mark Harland management team is 5 years. Together Executive Chairman Chief Operating Officer they hold 10.9% of shares in the company Appointed: 2017 Appointed: 2020 (11.6% with all staff) Shares: 1,597k Shares: nil Jeromy Young Trevor Elbourne Rodney Block Co-Founder Chief Technology Head of Global Business Officer Development Founded Atomos: 2010 Appointed: 2012 Appointed: 2020 Shares: 17,827k Shares: 482k Shares: nil Paul Scurrell Sir Hossein Yassaie James Cody Head of Product Non-Executive Director Chief Financial Officer Development Appointed: 2016 Appointed: 2016 Appointed: 2019 Shares: 1,739k Shares: 410k Shares: 1,278k Stephen Stanley Stephan Kexel Richard Salib Non-Executive Director Global Sales Director Head of Engineering Appointed: 2019 Appointed: 2012 Appointed: 2012 Shares: 401k Shares: 42k Shares: 117k

Corporate Snapshot

Pricing Snapshot

Major Shareholders

Top 6 shareholders ~35%

Board of Directors

Share Price History

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Senior Management Team

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Paul Scurrell Head of Product Development $- 0
Rodney Block Head of Business development
Richard Salib Head of Engineering
© ATOMOS 2021 | 1H FY21 RESULTS 21 |
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Strong, sustainable, sales growth driving record EBITDA and cash generation

Inventing and delivering ground-breaking technologies and products that democratise the creativity of content in the video age

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Q&A
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James Cody

Simon Hinsley

For more information please visit www.atomos.com

Agenda

1H FY21 Summary 3 > Chris Tait, Exec Chair Financial Review 7 > James Cody, CFO Group Strategy & Outlook 13 > Chris Tait, Exec Chair Q&A 22 Appendices 25

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© ATOMOS 2021 | 1H FY21 RESULTS 24 |
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Atomos Core IP – Why We Can Democratise Creativity in Video

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+

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+

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= competitive edge for new opportunities

Atomos Product Suite

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NINJA + SHINOBI Ranges

SHOGUN Range

SUMO Range

Shogun Studio + NEON Cinema Series Converters + Accessories

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Streaming
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