ATOMOS LIMITED — Investor Presentation 2021

Aug 17, 2021

==> picture [411 x 310] intentionally omitted <==

==> picture [276 x 92] intentionally omitted <==

==> picture [92 x 92] intentionally omitted <==

==> picture [88 x 89] intentionally omitted <==

Investor Presentation 18 August 2021 Chris Tait, Executive Chair James Cody, Chief Financial Officer

PG.1

FY21 Summary Chris Tait, Executive Chair

PG.2

FY21 Summary Key Highlights

==> picture [63 x 47] intentionally omitted <==

• Record FY21 revenue of $78.6m, up 77% on pcp1 (FY20: $44.4m) • Strong growth driven by rapid adoption of ProRes RAW and new product launches

Sales	• Record FY21 revenue of $78.6m, up 77% on pcp1 (FY20: $44.4m)
	• Strong growth driven by rapid adoption of ProRes RAW and new
	product launches
Margin	• Gross profit of $37.4m (47.6%), up significantly on pcp (39.8%)
	• Driven by less promotional activity, new product launches and
	supplier management
EBITDA	• EBITDA2of $8.2m (FY20: -$7.1m)
	• EBITDA margin of 10.4%
Cash	• Generated $7.1m of cash – represents an 87% cash conversion
Strong Balance Sheet	• $26m of cash (FY20: $19m) and access to $5m working capital

• EBITDA margin of 10.4% • Generated $7.1m of cash – represents an 87% cash conversion • $26m of cash (FY20: $19m) and access to $5m working capital facility

1 Previous corresponding period 2 Includes one-off gain of $0.47m resulting from the renegotiation of the Melbourne head office lease

PG.3

Summary

Atomos Overview External Factors Organisation Investing for Growth Outlook

• Whole of business review: structure, cost base, processes

• Leaner, stronger, more efficient

• Captured the video growth phenomenon across all market segments

• Video growth phenomenon

• Forex – EBITDA natural USD hedge but revenue influenced

• Component supply – tight management, buffer inventory

• Build management capability

• Harness / protect entrepreneur-led innovation heritage

• New silicon platforms and technologies

• Direct customer engagement

• Exploring new markets – gaming, corporate, pro-AV, etc.

• Sales momentum is continuing

• EBITDA margin trending towards 12-15% with operational leverage

==> picture [63 x 47] intentionally omitted <==

PG.4

FY21 Revenue Analysis

==> picture [818 x 452] intentionally omitted <==

----- Start of picture text -----

Revenue ($m) [1]
78.6
54.0
45.8
44.4
29.7
35.6 11.8
31.1
1H
17.3
16.7
2H
32.6 32.8
24.2
14.4 18.4
FY17 FY18 FY19 FY20 FY21
----- End of picture text -----

• Record revenue of $78.6m driven by multiple ProRes RAW camera implementations and new product launches

• Pro Video performed strongly (+71%) with excellent growth from emerging Social (+96%) and Entertainment (+82%) markets

• Australian company with global presence growing strongly across all regions

• ~

• • Appreciation of the AUD over the year impacted sales by $6m

1 1H17, 2H17, 1H18 & 2H18 Unaudited

==> picture [63 x 47] intentionally omitted <==

==> picture [792 x 895] intentionally omitted <==

----- Start of picture text -----

Revenue by Market Segment / Region ($m)
53.7
FY20
FY21
31.4
18.7
9.6
6.2
3.4
+96% +71% +82%
Social Pro Video Entertainment
34.7
26.5
19.7
17.4
14.1
10.5
24% 22% 32% 34% 44% 44%
APAC EMEA US
PG.5
----- End of picture text -----

Financial Review James Cody, CFO

PG.6

FY21 Financial Summary Year Ending 30 June 2021

Margin	• Higher margin from new products
	• Reduced promotional discounting
	• Procurement gains
Costs	• Variable costs in line with revenue
	• Lack of tradeshows drove cost savings
	• Investment for growth and scale
	• R&D investment of $5m
Earnings	• EBITDA margin (pre R&D) of 16.8%
	• EBITDA margin of 10.4%
	• Maiden NPAT of $4.2m (FY20: -$12.2m)
Balance Sheet	• Cash flow positive: $7.1m, 87% conversion
& Cash	• Strong balance sheet with $26m of cash
	• Significant tax losses available

==> picture [63 x 47] intentionally omitted <==

PG.7

==> picture [1703 x 665] intentionally omitted <==

----- Start of picture text -----

EBITDA ($m)
FY21 Earning Analysis
15.0
Gross Margin
5.1
10.0
(2.3)
0.4 8.2
1.1% 47.6%
13.6
2.4% (2.5)
5.0
1.3%
4.1%
(0.0)
39.8%
(5.0)
(1.0%)
(7.1)
(10.0)
FY20 FX Impact Product Mix Pricing Procurement Tariffs FY21 FY20 Revenue Margin Var. Costs STI Cost Fixed Cost FY21
Margin improvement from: • 77% growth in revenue and 7.8% lift in gross margin percentage drove $20m of
----- End of picture text -----

• 77% growth in revenue and 7.8% lift in gross margin percentage drove $20m of the overall EBITDA improvement

• Impact of strengthening AUD (-1%)

• Variable cost increase in line with revenue growth

• Improved margin across all products (inc. software): 4.1%

• Trade show savings funded fixed cost base investment for growth

• Pricing improvement due to reduced promotional discounting: 1.3%

• Reported EBITDA of $8.2m: 10.4% EBITDA margin

• Procurement gains: 2.4%

• COVID recovery STI impacted EBITDA by 3.2% and with ongoing profitability the STI will decrease as a %

• Relaxation of the initial US import tariffs: 1.1%

PG.8

FY21 Cost Management

==> picture [1729 x 586] intentionally omitted <==

----- Start of picture text -----

Monthly Fixed Costs ($m) Cost Structure ($m)
2.3
2.0
Sales 100% $5m / month breakeven
1.6
COGS 52%
1.0
Vaiable costs 8%
GP
40%
(ex var costs)
Pre COVID COVID low Post COVID Jun 21 Run Rate
Fixed costs $2m / month run-rate
• Following the significant cost-cutting that took place during the initial COVID
----- End of picture text -----

• Following the significant cost-cutting that took place during the initial COVID impact, the business has been re-investing throughout FY21 to enable ongoing growth and scale

• We will continue to cautiously re-invest in our cost base during FY22 to support our continued growth

==> picture [63 x 47] intentionally omitted <==

PG.9

FY21 Financials - Pro Forma Income Statement

==> picture [1049 x 699] intentionally omitted <==

----- Start of picture text -----

Pro Forma (A$m) FY20 FY21 Δ pcp [1]
Revenue 44.4 78.6 77%
COGS (26.7) (41.2) (54%)
Gross Profit 17.7 37.4 111%
Gross Profit Margin 39.9% 47.6%
Variable Operating Expense (3.5) (5.8) (66%)
Wages & Salaries (8.7) (12.9) (48%)
Marketing (4.6) (2.5) 46%
General & Administration (4.8) (3.9) 19%
Other 0.4 0.9 125%
Operating Expenses (21.2) (24.2) (14%)
EBITDA (pre R&D) (3.5) 13.2 $16.7m
R&D Expenses (3.8) (5.0) (32%)
EBITDA [2] (7.3) 8.2 $15.5m
Depreciation & Amortisation (3.8) (3.2) 16%
EBIT [2] (11.1) 5.0 $16.1m
Tax and Interest (1.1) (0.8) 27%
NPAT [2] (12.2) 4.2 $16.4m
----- End of picture text -----

==> picture [63 x 47] intentionally omitted <==

1 Previous corresponding period

2 Includes one-off gain of $0.47m resulting from the renegotiation of the Melbourne head office lease

PG.10

FY21 Financials - Pro Forma Balance Sheet

==> picture [829 x 749] intentionally omitted <==

----- Start of picture text -----

Pro Forma (A$m) 30 Jun '20 30 Jun '21
Cash and cash equivalent 18.8 26.0
Trade and other receivables 4.7 12.8
Inventories 16.8 16.6
Other assets 2.3 5.2
Plant and equipments 2.6 2.4
Right of use asset 8.9 3.0
Intangible assets 25.1 25.2
Total assets 79.2 91.2
Trade and other payables (10.7) (21.9)
Borrowings (0.1) 0.0
Provisions (0.9) (1.5)
Lease liabilities (9.4) (3.2)
Deferred tax liability (1.0) (0.9)
Total liabilites (22.1) (27.5)
Net assets 57.1 63.7
Issued capital 101.5 101.7
Reserves 1.0 3.1
Accumulated losses (45.4) (41.1)
Equity 57.1 63.7
----- End of picture text -----

Key Insights

• Strong balance sheet with $26m of cash at 30 June 2021

• Receivables increase a reflection of much higher sales in Q4 vs pcp

• Renegotiation of head office lease drove reduction in right of use asset and lease liabilities

• Higher payables reflective of growth in orders to build depth of inventory

• $35m of tax losses and R&D tax credits unrecognized and available to offset future tax payable (after $7m of losses utilised in respect of FY21)

PG.11

Group Strategy & Outlook

Chris Tait, Executive Chair

==> picture [63 x 47] intentionally omitted <==

PG.12

Our Strategic Pillars

Accessible, affordable, intuitive products & services

Our mission is to combine our own deep video tech with that of other great video tech companies, to build products, services and an ecosystem that democratises content creation for everyone.

Our Mission

==> picture [674 x 70] intentionally omitted <==

----- Start of picture text -----

Deep Video Partnerships with
Tech world’s best video
tech cos.
----- End of picture text -----

==> picture [63 x 47] intentionally omitted <==

PG.13

Who are our customers? …Social…

==> picture [806 x 629] intentionally omitted <==

==> picture [806 x 629] intentionally omitted <==

==> picture [63 x 47] intentionally omitted <==

PG.14

Our Pro-Video Customer

==> picture [569 x 491] intentionally omitted <==

==> picture [569 x 491] intentionally omitted <==

==> picture [569 x 491] intentionally omitted <==

==> picture [63 x 47] intentionally omitted <==

PG.15

Our Entertainment Customers

==> picture [63 x 47] intentionally omitted <==

==> picture [593 x 333] intentionally omitted <==

==> picture [226 x 331] intentionally omitted <==

==> picture [211 x 331] intentionally omitted <==

==> picture [265 x 331] intentionally omitted <==

==> picture [224 x 333] intentionally omitted <==

==> picture [224 x 333] intentionally omitted <==

==> picture [225 x 333] intentionally omitted <==

==> picture [706 x 333] intentionally omitted <==

PG.16

FY21 Revenue Growth Highlights

New standards & new products drove record sales

Rapid adoption of ProRes RAW

ProRes RAW Enabled Camera Market

• The standard driven by AMS and Apple partnership

• Oscar & Emmy awarded Apple video format launched in 2018

• 10 major camera partners have now embraced the RAW ecosystem

RAW enabled cameras Monthly ProRes RAW Activations

==> picture [41 x 14] intentionally omitted <==

----- Start of picture text -----

3439
----- End of picture text -----

• Monthly activations of ProRes RAW increased sevenfold in 18 months

• RAW enabled cameras increased by 200% in 18 months

• Supported by major video editing platforms (Adobe, Avid & Apple) New Product Launches (Devices)

• Ninja V+ - world’s first 8K and high frame rate monitor recorder

• Ninja Stream - provides multiple on-set streaming options

• Shinobi 7 - 7” monitor added to extremely popular Shinobi range

• AtomX Cast – turns the Ninja into a standalone multi-camera production device

New Product Launches (Software)

• RAW over SDI enabled for Ninja V via USD 99 software upgrade

• Ninja V enabled for H.265 video codec via USD 99 software upgrade

==> picture [63 x 47] intentionally omitted <==

==> picture [823 x 127] intentionally omitted <==

----- Start of picture text -----

489
12 12 12 13 19 22 22 24 26 28 29 32 32 33 35 35 39 47
Jan '20Feb '20Mar '20Apr '20May '20 Jul '20Aug '20Sep '20Oct '20Dec '20 Jan '21 Feb '21Mar '21 Apr '21May '21 Jun '21 2021 2022
----- End of picture text -----

PG.17

FY21 Operational Highlights

• As we made savings in FY21 we ensured that we continued to invest in the right areas to drive future growth

Next Generation Platforms

• ~

• • Increased engineering headcount ( $2m/annum) to develop next generation 8K30 silicon and product range upgrade

• Series 2 platform built on AtomIC 3 - products to launch through late FY22 / early FY23

• ~

• • Continue development of 8K60 silicon ( $1m/annum)

Customer engagement

• Re-aligned marketing expenditure (trade show cost savings refocused to direct customer engagement):

• Atomos Academy and MyAtomos

• Instagram: 116k (+20% YoY), Facebook: 35k (+10%), Twitter: 18k (+10%), YouTube: 20k (+33%)

• CRM: captured data on 112k customers (+44%)

• ~

• • EDM open rates: 40% (industry standard: 20%) and click through: 5% (industry ~

• standard: 2.5%)

New markets

• ~ $1m/annum investment in targeting entry into new markets such as gaming, corporate

• and pro AV

==> picture [63 x 47] intentionally omitted <==

PG.18

FY22 Outlook

Demand for high quality video creation, consumption and delivery is growing

Atomos has a solid base for rapid growth Key risks / Upsides

~ • Core pro video market growing at 70% (corporate events, streaming, etc)

• YouTube viewers watch over one billion hours of videos on the platform every single day • 207m Netflix subscribers (+40% over 2 years) • 6.3b Twitch viewing hours in Q1 2021 (+125% over 2 years) • Zoom’s daily meeting participants have grown from 10m in Dec-19 to 300m Apr-21

• New products and services in the pipeline already • Will continue to invest in technology for future products and services • We continue to build partnerships with the world’s great technology companies • Sales momentum is continuing

• EBITDA margin trending towards 12-15% with operational leverage • Managing component supply constraints with good planning

• Natural USD hedge – nevertheless, forex impact on revenue and margin % • Balancing product mix to ensure margin growth • Customer engagement investment

==> picture [63 x 47] intentionally omitted <==

PG.19

Outlook – Potential M&A

Atomos will carefully consider acquisitions in the following areas

==> picture [108 x 143] intentionally omitted <==

Technology Standards

Selective businesses with an industry standard technology or which has the potential to define future standards.

==> picture [112 x 128] intentionally omitted <==

Complimentary Tech

Businesses with great technology / capability which will accelerate Atomos own organic plans.

==> picture [141 x 141] intentionally omitted <==

New Complimentary Markets

Businesses which provide access to selective new markets:

• Products

• Services

• Geographies

==> picture [63 x 47] intentionally omitted <==

PG.20

Corporate Snapshot

==> picture [782 x 749] intentionally omitted <==

----- Start of picture text -----

Pricing Snapshot
Ticker AMS
Share Price $1.11
Shares on Issue (m) 218.5
Market Capitalisation (m) $242.5m
Board of Directors
Chris Tait Executive Chairman
Megan Brownlow Non-Executive Director
Stephen Stanley Deputy Chairman
Lauren Williams Non-Executive Director
Sir Hossein Yassaie Non-Executive Director
Jeromy Young Executive & Co-Founder
Senior Management Team
James Cody Chief Financial Officer
Trevor Elbourne
Chief Technology Officer
Mark Harland
Chief Operating Officer
Estelle McGechie
Chief Product Officer
----- End of picture text -----

==> picture [782 x 310] intentionally omitted <==

----- Start of picture text -----

Major Shareholders
Ellerston Capital Ltd 7.2%
Regal Funds Mgmt 6.8%
Wilson Asset Mgmt 6.0%
~
Top 8 shareholders 41%
~
Board & Senior Management 7%
Share Price History
----- End of picture text -----

==> picture [782 x 364] intentionally omitted <==

PG.21

Q&A

Reminder:

• Strategy update and meet the senior executive on Monday, 13 September 2021

• Address “Forum 1” at Melbourne Connect, 700 Swanston Street, Carlton and by Video-link • Register here to attend or to receive Video-link