ATOMOS LIMITED — Investor Presentation 2022

Feb 14, 2022

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Investor Presentation

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Summary

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Atomos Growth

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Revenue ($m) [1]
2H 1H
95.0+
78.6
53.7
45.8
44.7
+18%
35.7
29.5 12.1
17.3
40.9
32.6 32.8
24.2
18.4
+25%
FY18 FY19 FY20 FY21 FY22
30% CAGR [2]
This, with 77% growth
$40.9m record first half
in FY21 is in line with
25% up on 1H FY21
long-term average of 30%
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Revenue by Region ($m)
19.2
13.4 13.7
11.3
8.3
7.7
23.5% 20.4% 34.5% 32.8% 42.0% 46.8%
APAC EMEA US
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Steady growth in all regions US +40% leading with a strong content driven market

FY22 guidance of $95m+ represents 21% growth

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Growing Product Range

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Hardware Devices Sold (‘000) / # Devices # Software Applications Sold (‘000) / # Software Applications
7.0 14.0
120.0 16
Hardware Devices sold ('000) 11+ # Software Applications Sold ('000) 2+
6.0 14 12.0
100.0 # Devices
# Software Applications
11 12
5.0 10.0
10
80.0
9 10
4.0 8.0
60.0 7 8
3.0 6.0
6
2
40.0
2.0 4.0
4
20.0
1.0 2.0
2
3.0
26.3 59.2 41.3 98.3 48.6 1.2
- - - -
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Applicable to # of Atomos devices 2 6
Growing range of innovative products, Shift from hardware exclusive, to
well timed to market that have high hardware and high margin product
customer value and drive sales software sales
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Review

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1H FY22 Summary

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Sales	• 1H FY22 revenue of $40.9m, up 25% on pcp1 (1H FY21: $32.8m) • Growth driven by strong demand for new products
Margin	• Gross profit of $19.3m (47.3%), up 2.4% on pcp1 • Higher margin on new products, including 100% margin software applications
Costs	• Variable opex increased by ~1.7% of sales ($0.7m), reflecting higher distribution expenses • Investment in marketing of $1.4m to drive growth
Proforma EBITDA2	• Proforma EBITDA of $3.2m (1H FY21: $2.4m)
(post R&D)	• Well on track to hit FY22 EBITDA of 12%-15% with 1H FY21 up 33% on pcp1
Inventory	• Progressively built inventory position to insulate against supply chain volatility
Strong Balance Sheet	• $17m of cash and access to $5m working capital facility

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1H FY22 Earnings

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Proforma EBITDA ($m)

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1H FY22 Financials

Pro Forma (A$m)	1H FY21	1H FY22 Δ pcp1 (A$m) Δ pcp1(%)
Revenue	32.8	40.9 8.1 24.7%
COGS	(18.0)	(21.6) (3.6) 20.0%
Gross Profit Gross Profit Margin	14.8 44.9%	19.3 4.5 30.4% 47.3% n/a 2.4%
Variable Operating Expense	(2.4)	(3.7) (1.3) 54.2%
Wages & Salaries	(5.2)	(5.4) (0.2) 3.8%
Marketing	(0.9)	(2.3) (1.4) 155.6%
General & Administration	(1.8)	(2.1) (0.3) 16.7%
Other	0.0	(0.1) (0.1) NM
Operating Expenses	(10.3)	(13.6) (3.3) 32.0%
Pro Forma EBITDA (pre R&D)	4.5	5.7 1.2 26.7%
R&D Expenses	(2.1)	(2.5) (0.4) 19.0%
Pro Forma EBITDA	2.4	3.2 0.8 33.3%
Pro Forma Adjustments	1.1	(0.8) (1.9) NM
Reported EBITDA	3.5	2.4 (1.1) (31.4%)
Depreciation & Amortisation	(1.5)	(1.8) (0.3) 20.0%
EBIT	2.0	0.6 (1.4) (70.0%)
Tax and Interest	(0.3)	(0.3) 0.0 0.0%
NPAT	1.7	0.3 (1.4) (82.4%)

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Pro Forma Adjustments

1H FY21 excludes

one-off gain resulting from the renegotiation of the Melbourne head office lease (+$0.5m)

income from government subsidies (+$0.6m)

2H FY22 excludes

founder transition costs (-$0.7m)

costs associated with Cinemacraft (-$0.2m)

income from government subsidies (+$0.1m)

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1H FY22 Financials

Pro Forma (A$m)	30 Jun’21 31 Dec’21
Cash and cash equivalent	26.0 16.8
Trade and other	12.8 15.0
receivables
Inventories	16.6 24.0
Other assets	5.2 7.3
Plant and equipment	2.4 2.6
Right of use asset	3.0 6.7
Intangible assets Total assets	25.2 26.6 91.2 99.0
Trade and other payables	(21.9) (24.3)
Borrowings Provisions	(0.0) 0.0 (1.4) (2.4)
Lease liabilities	(3.2) (6.9)
Deferred tax liability	(1.0) (0.8)
Total liabilities	(27.5) (34.4)
Net assets	63.7 64.6
Issued capital	101.7 102.5
Reserves	3.1 2.9
Accumulated losses	(41.1) (40.8)
Equity	63.7 64.6

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Key Insights

Strong balance sheet with $17m of cash at 31 December 2021

Investment in inventory to insulate against supply chain interruptions

Receivables increase reflecting growing sales

Increase in right of use asset and lease liabilities reflecting new head office lease

$39m of tax losses and R&D tax credits unrecognized and available to offset future tax payable

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Outlook

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Our Strategic Pillars

Products & Services

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The Vision

Innovative Technology

Our essentials for long-term success

Partnerships

To democratise content creation and delivery. The Mission

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.

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Building an Ecosystem

People Fall in Love

with products

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2 of 11 hardware products have evolved with enabled software

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Hardware only + free feature upgrades which gave value to customers

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Every new hardware product will be software enabled

Hardware only with limited free feature upgrades That is our PAST

Evolved 2 hardware products with software features That is our PRESENT

Hardware & software on a unified platform That is our FUTURE Hardware & software full workflow ecosystem

That is our PAST + PRESENT + FUTURE

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Our Hardware Evolution
PAST PRESENT FUTURE
Product engineered Ninja V & V+ engineered FY22 launch Series 2
individually without software for software features next generation products
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Potential M&A

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Technology & Standards We will buy companies with technology and standards which help us sell more products Smart, well-structured acquisitions which are not dilutive

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New Complimentary Markets

We will opportunistically look at business that provide access to new markets and enhance earnings

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Key Takeaways

New Products Drive Growth Key products have always driven sales Progressively moving into software products which drive margin expansion Opening up new markets (Americas, Gaming)

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Guidance Reaffirmed

Revenue expected to be $95m+ for FY22 up 21% on FY21 which grew by 77% Implies 2H FY22 growth of 18%+ vs 1H FY22 (25%) EBITDA expected to be 12%-15%

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Well placed to continue to see growth in line with the longterm CAGR of 30%

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Corporate Snapshot

	Pricing Snapshot
	Ticker	AMS
	Share Price	$0.895
	Shares on Issue (m)	222.4
	Market Capitalisation (m)	199.0

	Board of Directors
	Chris Tait Stephen Stanley Megan Brownlow	Non-Executive Chairman Deputy Chairman Non-Executive Director
	Lauren Williams	Non-Executive Director
	Sir Hossein Yassaie	Non-Executive Director

SeniorManagementTeam
Estelle McGechie	Chief Executive Officer
James Cody	Chief Financial Officer
Trevor Elbourne	Chief Technology Officer
Mark Harland	Chief Operating Officer
Stephan Kexel	Chief Sales Officer

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Major Shareholders

Regal Funds Mgmt	8.5%
Ellerston Capital Ltd	7.3%
Wilson Asset Mgmt	6.2%
Top 10 shareholders	~43%

Share Price History

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$2.0 Volume 10.0m
$1.8 Share Price 9.0m
$1.6 8.0m
$1.4 7.0m
$1.2 6.0m
$1.0 5.0m
$0.8 4.0m
$0.6 3.0m
$0.4 2.0m
$0.2 1.0m
$0.0 0.0m
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Q&A