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2018 Annual Revenues
January 31, 2019
2ATEME © 1991-2019
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 offerto 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 orcommitment whatsoever concerning ATEME’s assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding ATEME’sposition, 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 andassumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks includebut are not limited to impact of external events on customers and suppliers; the effects of competing technologies competitiongenerally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationshipsin 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 thispresentation 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 ordistributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
3ATEME © 1991-2019
Presenters
Michel ArtièresFounder & Chief Executive Officer
Degree in Engineering from Supelec, Paris, with a specialization in signal processing and telecommunications
Fabrice Sana Chief Financial Officer
Degrees from the European Business School and ESSEC
4ATEME © 1991-2019
1.ATEME2. Market Trends
3. 2018 Revenues
4. Strategy
5ATEME © 1991-2019
ATEME Factsheet
33 Patents
260 people in 18 countries
700 clients in 100 countries
Public since 2014
56.5 M€ in 2018 (+16%)
ATEME designs software video compression solutions to enable innovative live or on demand video delivery
services while preserving picture quality.
Strategic partnerships
6ATEME © 1991-2019
A Complete Offer for Video Flow
Service Provider(Satellite, Cable, Telco)
Video Headend
Event
ContributionPrimary
DistributionDistribution
OTT / Multiscreen
Subscriber
CDNContent Provider
TV Network
Kyrion encoders in the trucks and decoders at the TV station
TITAN is a virtualized Video Headend software covering all Live and File needs
7ATEME © 1991-2019
1. ATEME
2.Market Trends3. 2018 Revenues
4. Strategy
8ATEME © 1991-2019
Sept 2015
$300-500M(5-7x Sales)
acquires
Sept 2015
$125M (4x Sales)
acquires
Dec 2015
€69M (1x Sales)
acquires
Consolidation Clearing the Way for ATEME
Essentially down from 7 to 4 Players
• US service providers running away from their competitor (Amazon Prime Video)
• Envivio partners are Ericsson competitors
• Redundant employees (Sales worldwide)
• Products end of life confusing clients
• Redundant employees (Rennes R&D)
Ideal
Scenario
for ATEME
Jan 2018
acquires 51% of
and becomes
9ATEME © 1991-2019
Growing Demand For UHD TV
4K TV
+38%CAGR 2017-2022
Source : Dataxis
Growing number of 4K Set-Top Boxes
4K STB
31 millionunits
in 2017
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
Connected 4K TV sets
162
260
379
514
658
799
2017 2018 2019 2020 2021 2022
Source : CISCO VNI global IP traffic forecast 2017-2022
By 2022, nearly two-thirds
(62%) of connected flat panel
TVs will support 4K.
Un
its
-in
mill
ion
s
10ATEME © 1991-2019
UHD Content Impacts IP Video Growth
UHD IP video will account for 22% of global IP video traffic by 2022
Exab
ytes
per
mo
nth
• 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.
+29%CAGR
2017-2022
Source : CISCO VNI global IP traffic forecast 2017-2022
Netflix Subscribers Worldwide
0
20
40
60
80
100
120
140
160
2012 2013 2014 2015 2016 2017 2018
Source : Statista
Nu
mb
ero
f su
bsc
rib
ers
in m
illio
ns
“Netflix is the key service driving UHD SVoDspend. Depending on the country, around 20 percent to 30 percent of subscribers have opted for the UHD premium tier.”
11ATEME © 1991-2019
ATEME supports all HDR compression standards
Realtek, Mediatek et Hisilicon are semiconductor manufacturers for TVs, set-top boxes, etc.
HDR is included in over half of all 4K UHD TVs sold worldwide in 2018
ATEME supports all HDR compression standards
13ATEME © 1991-2019
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 trial5G promises higher quality/faster delivery of entertainmentMay accelerate cord-cutting effect and enable more app-type bundles to succeed
14ATEME © 1991-2019
1. ATEME
2. Market Trends
3.2018 Revenues4. Strategy
15ATEME © 1991-2019
10 646 9 563
10 291 13 672
11 108
15 169
16 554
18 086
2011 2012 2013 2014 2015 2016 2017 2018
Q1 Q2 Q3 Q4
Revenues Evolution by Quarter
€37.5m
€28.6m
€12.3m
€17.9m€20.6m
€24.8m
IPO
€48.6m
+16.2%in 2018
+18.1%at constant
exchange rate
€56.5m
16ATEME © 1991-2019
2018 Annual Revenue Split and Growth by Region
EMEA37%
USA/Canada33%
LATAM12%
APAC19%
USA/CAN+18%
LATAM-17%
APAC+70%
2018 REVENUE SPLIT BY REGION 2018 REVENUE GROWTH BY REGION
-xx%at constant
exchange rate
+xx%at constant
exchange rate
+xx%at constant
exchange rateEMEA+11%
+21%at constant
exchange rate
-14%at constant
exchange rate
+73%at constant
exchange rate
17ATEME © 1991-2019
11 948
15 700
18 527
2016 2017 2018
USA & Canada
In €
K
+18%
+21%at constant
exchange rate
18ATEME © 1991-2019
16 293 18 593
20 621
2016 2017 2018
EMEA
In €
K
+11%
19ATEME © 1991-2019
5 018 6 311
10 743
2016 2017 2018
APAC
+70%
In €
K
+73%at constant
exchange rate
20ATEME © 1991-2019
4 200
7 995 6 600
2016 2017 2018
LATAM
In €
K
-17%
-14%at constant
exchange rate
21ATEME © 1991-2019
1. ATEME
2. Market Trends
3. 2018 Revenues
4.Strategy
22ATEME © 1991-2019
Content 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
23ATEME © 1991-2019
New Video Delivery Schemes Enabling Major TAM Increase
$250mPrimary
Distribution
$100mContribution
$300mOTT / Multiscreen
$350mDistribution
Sources : Frost & Sullivan (2014), Company
Video Delivery Infrastructure
WIN THE VIDEO HEADEND EXPAND TO VIDEO NETWORKING
• TITAN Video Head End software components 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
24ATEME © 1991-2019
New Video Delivery Schemes
Traditional distribution schemeA centralized Video Headend provides 1000 contents X 10 formats to the whole network
Video Headend
Adding video processing capabilities closer to the subscribers enables multiple benefits for the Service Provider:• Incremental revenues with targeted add
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 mile bandwidth savings (1 format vs 10)
LAST MILE
ACCESS NETWORK
WIDE AREA AND METRO NETWORK
BACKBONE OR CORE NETWORK
25ATEME © 1991-2019
Expand to CPs and SPs OTT Delivery
Service Provider(Satellite, Cable, Telco)
Video Headend
PrimaryDistribution
Traditional Distribution
SubscriberCDN
Content ProviderTV Network
CDN
1 Enable new decentralized
distribution workflow for SPs
2 Enable CPs’ direct access
to consumers
OTT
Most of ATEME business today
26ATEME © 1991-2019
2020
2019Win the Video Head End market and prepareexpanding to Network
Gross Margin expected up(shift to software)
Increasing operating profit every year
Multi-year contracts leading to increasing predictability in topline growth, with contribution from all 4 regions
2 Year Plan
S&M investments to
keep developing our
international coverage, but will
not grow as fast as the topline
R&D investments to
develop innovative
Network solutions, but will
not grow as fast as the topline
27ATEME © 1991-2019
Investor Relations
Next investor date
Market data
ISIN: FR0011992700 - Ticker: ATEME
Stock price: €13.44 (as of Jan. 30, 2019)
Market cap: €140m (as of Jan.30, 2019)
Concert Artières
12%Xavier
Niel6%
Keren Finance
6%
Dorval AM6%
Others < 5%70%
Liquidity contract: Gilbert Dupont
Source : company, as of December 31, 2018
March 28, 2019 2018 Year-End Results
May 7, 2019 2019 First Quarter Revenues
June 6, 2019 Annual Shareholders Meeting
July 18, 2019 2019 Half-Year Revenues
Sept. 26, 2019 2019 Half-Year Results
Nov. 5, 2019 2019 Third Quarter Revenues
Shareholder structureNumber of shares: 10,418,984Potential dilution : 190,955
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