2018 Annual Revenues January 31, 2019
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2018 Annual Revenues
January 31, 2019
Disclaimer
This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer
to buy any securities of ATEME, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
commitment whatsoever concerning ATEME’s assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding ATEME’s
position, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management’s current views and
assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include
but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition
generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships
in major businesses; and the effect of future acquisitions and investments.
ATEME expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this
presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based,
unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or
distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
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ATEME © 1991-2019
Presenters
Michel Artières Fabrice Sana
Founder & Chief Executive Officer Chief Financial Officer
Degree in Engineering from Supelec, Paris, with a Degrees from the European Business School and ESSEC
specialization in signal processing and
telecommunications
3
ATEME © 1991-2019
1.ATEME
2. Market Trends
3. 2018 Revenues
4. Strategy
4
ATEME © 1991-2019
ATEME Factsheet
Public since 2014 ATEME designs software video compression solutions
to enable innovative live or on demand video delivery
services while preserving picture quality.
56.5 M€ in 2018 (+16%)
260 people in 18 countries
700 clients in 100 countries
Strategic partnerships
33 Patents
5
ATEME © 1991-2019
A Complete Offer for Video Flow
Primary Distribution
Contribution Distribution
Event Service Provider Subscriber
Content Provider
TV Network (Satellite, Cable, Telco) CDN
Video Headend
OTT / Multiscreen
Kyrion encoders in the trucks and TITAN is a virtualized Video Headend software
decoders at the TV station covering all Live and File needs
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ATEME © 1991-2019
1. ATEME
2.Market Trends
3. 2018 Revenues
4. Strategy
7
ATEME © 1991-2019
Consolidation Clearing the Way for ATEME
Sept 2015 Sept 2015 Dec 2015 Jan 2018
acquires 51% of
acquires
acquires acquires
and becomes
$300-500M $125M (4x Sales) €69M (1x Sales)
(5-7x Sales)
• US service providers • Envivio partners are • Products end of life
running away from Ericsson competitors confusing clients
their competitor • Redundant • Redundant
(Amazon Prime Video) employees (Sales employees (Rennes Ideal
worldwide) R&D)
Scenario
Essentially down from 7 to 4 Players
for ATEME
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ATEME © 1991-2019
Growing Demand For UHD TV
4K TV 4K STB
31 million
+38% Connected 4K TV sets units Growing number of 4K Set-Top Boxes
CAGR 2017-2022
in 2017
799
By 2022, nearly two-thirds
(62%) of connected flat panel 658
TVs will support 4K.
514
379
Units - in millions
260
162
2017 2018 2019 2020 2021 2022
Source : CISCO VNI global IP traffic forecast 2017-2022 Source : Dataxis
There are now 142 channels and services transmitting in 4K worldwide of which:
• 85 coming from IPTV-based services (60%) ;
• 55 coming from satellite (39%) ;
• 2 coming from terrestrial channels that are making experimental broadcasts (1%).
Source : Eutelsat Report, Oct. 2018
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ATEME © 1991-2019
UHD Content Impacts IP Video Growth
Netflix Subscribers Worldwide UHD IP video will account for 22% of global IP video traffic by 2022
160 “Netflix is the key service driving UHD SVoD
140 spend. Depending on the country, around 20
percent to 30 percent of subscribers have opted
+29%
Number of subscribers in millions
120 CAGR
for the UHD premium tier.” 2017-2022
100
Exabytes per month
80
60
40
20
0
2012 2013 2014 2015 2016 2017 2018
Source : Statista Source : CISCO VNI global IP traffic forecast 2017-2022
• The amount of traffic crossing the global internet will increase by 153% to around 356 exabytes a month by
2022, with video accounting for 82% of traffic.
• More traffic will cross the internet in 2022, than in the entire span of 1984-2016 combined. And in five years,
60% of the world’s population will be using the internet.
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ATEME © 1991-2019ATEME supports all HDR compression standards
HDR is included in
over half of all 4K
UHD TVs sold
worldwide in 2018
Realtek, Mediatek et Hisilicon are semiconductor manufacturers for TVs, set-top boxes, etc.
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ATEME © 1991-2019ATEME supports all HDR compression standards
Latest Tech News / Others Trends We Monitor
Dec. 1st, 2018 :
NHK launched the first 8K channel in the world with
a broadcast of “2001: A Space Odyssey.”
NHK to broadcast 2020 Olympic Games in 8K.
Numerous Content/Service Providers launch 5G trial
5G promises higher quality/faster delivery of entertainment
May accelerate cord-cutting effect and enable more app-type bundles to succeed
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ATEME © 1991-20191. ATEME
2. Market Trends
3.2018 Revenues
4. Strategy
14
ATEME © 1991-2019Revenues Evolution by Quarter
€56.5m +16.2%
in 2018
€48.6m
18 086
+18.1%
€37.5m 16 554 at constant
exchange rate
€28.6m 15 169
€24.8m 11 108
€20.6m
€17.9m
€12.3m 10 291 13 672
10 646 9 563
2011 2012 2013 2014 2015 2016 2017 2018
Q1 Q2 Q3 Q4 IPO
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ATEME © 1991-20192018 Annual Revenue Split and Growth by Region
2018 REVENUE SPLIT BY REGION 2018 REVENUE GROWTH BY REGION
APAC USA/CAN +21%
+xx%
atatconstant
constant EMEA
19% EMEA +18% exchange
exchangerate
rate
+11%
LATAM 37%
12%
USA/Canada
33% APAC +xx%
+73%
at
at constant
constant
+70% exchange
exchange rate
rate
LATAM -14%
-xx%
at constant
at constant
-17% exchange rate
exchange rate
16
ATEME © 1991-2019USA & Canada +21%
at constant
exchange rate
+18%
18 527
15 700
11 948
In €K
2016 2017 2018
17
ATEME © 1991-2019EMEA
+11%
20 621
18 593
16 293
In €K
2016 2017 2018
18
ATEME © 1991-2019APAC
+73%
at constant
exchange rate
+70%
10 743
6 311
5 018
In €K
2016 2017 2018
19
ATEME © 1991-2019LATAM -14%
at constant
exchange rate
-17%
7 995
6 600
In €K
4 200
2016 2017 2018
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ATEME © 1991-20191. ATEME
2. Market Trends
3. 2018 Revenues
4. Strategy
21
ATEME © 1991-2019Content Providers Line-Up for Direct-To-Consumer OTT Services
NEW OTT Services Announced to be launched in the Coming 12-18 Months. More to Come
• Going direct to consumer = Less Intermediate in Distribution chain = Increased Revenue
• Access to end-user consumption may lead to targeted advertisement, hence even more revenue
promises
Consequence on ATEME = Growth Opportunities, these companies invest on Video Solutions
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ATEME © 1991-2019New Video Delivery Schemes Enabling Major TAM Increase
WIN THE VIDEO HEADEND EXPAND TO VIDEO NETWORKING
$350m
Distribution
$250m
$100m
Primary
Contribution
Distribution
$300m
OTT / Multiscreen
• TITAN Video Head End software components
Video Delivery Infrastructure can be reused in the Network to enable new
video delivery schemes
• Limited R&D investment (reusing TITAN
components)
• No go to market investment (same clients)
Traditional Video Compression Market = $1B Network Infrastructure Market = $25B
Sources : Frost & Sullivan (2014), Company
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ATEME © 1991-2019New Video Delivery Schemes
Traditional distribution scheme
BACKBONE A centralized Video Headend provides 1000
Video Headend
OR CORE contents X 10 formats to the whole network
NETWORK
Adding video processing capabilities closer
to the subscribers enables multiple benefits
WIDE AREA for the Service Provider:
AND METRO
• Incremental revenues with targeted add
NETWORK
insertion at the Metro Network
• Network CAPEX savings: TITAN’s JITT
(Just In time Transcoding) consists in
sending into the network only 1 format
per content. TITAN then generates
specific formats upon request and
available bandwidth, leading to 75% last
ACCESS mile bandwidth savings (1 format vs 10)
NETWORK LAST MILE
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ATEME © 1991-2019Expand to CPs and SPs OTT Delivery
Primary Traditional Most of ATEME
Distribution Distribution business today
Content Provider Service Provider
TV Network (Satellite, Cable, Telco)
Video Headend
1 CDN new decentralized
Enable Subscriber
distribution workflow for SPs
OTT
2 Enable CPs’ direct access
to consumers CDN
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ATEME © 1991-20192 Year Plan
Head End
market and
prepare
2019
Win the Video
expanding to
Multi-year
contracts leading
to increasing
predictability in
Gross Margin
expected up S&M
(shift to investments to Network
R&D
investments to
develop innovative
keep developing our solutions, but will
Increasing
operating
profit every
year
software) international not grow as fast as
Network topline growth,
the topline
2020
with contribution coverage, but will
from all 4 regions not grow as fast as
the topline
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ATEME © 1991-2019Investor Relations
Shareholder structure 20,00 € 200 000 Market data
Number of shares: 10,418,984
180 000
Potential dilution : 190,955 ISIN: FR0011992700 - Ticker: ATEME
18,00 €
160 000
Concert
Stock price: €13.44 (as of Jan. 30, 2019)
Others < 5% Artières Xavier 140 000
70% 12% Niel 16,00 €
Market cap: €140m (as of Jan.30, 2019)
6% 120 000
Keren 14,00 € 100 000
Finance
6% 80 000
12,00 €
60 000
Next investor date
Dorval AM 40 000 March 28, 2019 2018 Year-End Results
6% 10,00 €
May 7, 2019 2019 First Quarter Revenues
20 000
June 6, 2019 Annual Shareholders Meeting
8,00 € 0
Source : company, as of December 31, 2018
July 18, 2019 2019 Half-Year Revenues
Sept. 26, 2019 2019 Half-Year Results
Liquidity contract: Gilbert Dupont Stock Price Volume Nov. 5, 2019 2019 Third Quarter Revenues
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