2017 FY Results

March 28, 2018

2ATEME © 1991-2018

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 © 1991-2018

Presenters

Michel ArtièresFounder & Chief Executive Officer

Degree in Engineering from Supelec, Paris, with a specialization in signal processing and telecommunications

R&D in Image Processing and Compression for the French Ministry of Defense

Fabrice Sana Chief Financial Officer

Degrees from the European Business School and ESSEC

Management Control Director for KaravelFinance Controller for AlstomManager at Arthur Andersen / BearingPoint

4ATEME © 1991-2018

1.ATEME2. Market Trends

3. Financial Performance

4. Strategy

5ATEME © 1991-2018

ATEME Factsheet

22 Patents

220 people in 18 countries

700 clients in 100 countries

Public since 2014

48.6 M€ in 2017 (+30%)

ATEME designs software video compression solutions to enable innovative live or on demand video delivery

services while preserving picture quality.

Strategic partnerships

6ATEME © 1991-2018

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 © 1991-2018

1. ATEME

2.Market Trends3. Financial Performance

4. Strategy

8ATEME © 1991-2018

Video Growth DriversContinued Demand for High Efficiency Compression

Content Explosion

DelinearizationMore channels, more content

Monetization Opportunities

Multiplication of distribution formats

New Distribution Models

Multiscreen, OTT

Ultra HD Television

4K, HDR, WCG, HFR

Video content in global Internet traffic :

2017

75%

2019

80%

2020

84%

Source : Cisco

9ATEME © 1991-2018

Modern TV Networks are Growing Fast

Netflix Subscribers (in millions)

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2017

Source : Statista

0

2

4

6

8

10

12

14

16

18

2012 2013 2014 2015 2016 2017

Hulu Subscribers (in millions)

Source : Hulu

10ATEME © 1991-2018

Growing Demand For UHD TV

Western Europe UHD TV household forecast UHD TV

+32%by 2020

11ATEME © 1991-2018

Industry Shift to Software, the Revolution in Progress

Today, Service Providers deploy Software Converged Video Headends (Live + VOD, Box + Multiscreen), in a virtualized environment

Legacy Video Headendfor the linear distribution to the box

VOD and Multiscreenseparated infrastructure

Software Virtualized Video Headendrunning on a private cloud

=Software

Virtualized Headend

Running on

Private cloud

+ + Multi-Screen

VOD

10 years ago,Video Head Ends consisted in heterogeneous specialized hardware for each operation

Then,VOD and multiscreen were added and managed as separate operations

Legacy VHE

12ATEME © 1991-2018

30% density increase without network or

decoder/STB upgrade

QAM reclamation enabling new services

ATEME’s research team is working to help

define the next MPEG video compression

standard

Close partnership with

Reduce the required bandwidth for main-

screen & OTT HD

Reduce the solution’s TCO

1st to market with a production -ready

HEVC solution

Deploying HEVC projects with Tier1 clients worldwide

Transforming Video Delivery, Reducing Distribution Costs

MPEG2 (1994)

The only compression vendor part of

AV1, the royalty free codec, will be released in 2018 and supported

by TITAN

H264 (2003) HEVC (2013) AV1 (2018) H266 (2020 ?)

TITAN supports all international video compression standardsRecent involvement of ATEME R&D and deployment successes include:

13ATEME © 1991-2018

Sept 2015

$300-500M (5-7x)

acquires

Sept 2015

$125M (4x)

acquires

Dec 2015

€69M (1x)

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

14ATEME © 1991-2018

1. ATEME

2. Market Trends

3.Financial Performance4. Strategy

15ATEME © 1991-2018

2017 in Short

2017REVENUES

€48.6m

+30%

NET PROFIT

X2NET MARGIN :

8%

OPERATING PROFIT

x2.5OPERATING MARGIN :

10%

16ATEME © 1991-2018

7 436 10 646

7 544

10 291

10 632

11 108

11 846

16 554

2011 2012 2013 2014 2015 2016 2017

Q1 Q2 Q3 Q4

Consistent Organic Growth

€37.5m

€28.6m

€12.3m

€17.9m€20.6m

€24.8m

IPO

€48.6m

+30%CAGR

17ATEME © 1991-2018

2017 Revenue Split and Growth by Region

EMEA38%

USA/Canada32%

LATAM17%

APAC13%

USA/CAN+31.4%

LATAM+90.4%

EMEA+14.1%

APAC+25.8%

2017 REVENUE SPLIT BY REGION 2017 REVENUE GROWTH BY REGION

18ATEME © 1991-2018

Increasing Number of Customers, No Dependency

279327

378

2015 2016 2017

65,0%

35,0%

23,4%

6,5%

Others

Top 10 customers

Top 5 customers

1st customer

NUMBER OF CUSTOMERS INVOICED PER YEAR WEIGHT OF CUSTOMERS INVOICED IN 2017

+35%

19ATEME © 1991-2018

2017 P&LConsolidated data – IFRS –in thousands of euros

2016 2017 % change

Revenue 37,462 48,599 (1) +29.7%

Gross profit 22,083(2) 29,098 +31.8%

Gross margin 58.9% 59.9% +1.1 pt

R&D expenses (5,695) (6,158) +8.1%

Sales & marketing expenses(2) (12,490) (15,633) +25.2%

Other G&A expenses(2) (1,981) (2,416) +22.0%

Operating profit 1,918(3) 4,890 +155.0%

Operating margin 5.1% 10.1% +5.0 pts

Financial loss (207) (200) -3.4%

Financial profit 10 1 -90.0%

Exchange effectTax income

2470

(1,325)453

-100.5%

Net profit 1,968 3,819 +94.1%

Net margin 5.3% 7.9% +2.5 pts

+1.1 point increase in gross margin despite significant investment in the customer services team, thanks to the growth in software sales

Operating expenses contained:

• Increase in R&D investments

• Continued S&M international expansion

• Rise in total headcount from 170 to 220

Net profit x2

Operating profit x2.5

(1) 48 599 k€ vs 48 423 K€ published figures after consolidation of ATEME Singapore revenue (APAC) recognized on December 2017(2) Reclassification of « legal fees » from « cost of sales » to « G&A expenses »: positive impact of 52 k€ on growth margin 2016 versus published figures, no impact on operating profit and net profit.(3) At 31 December 2016 the level of amortization of capitalized development costs in conformity with the IAS 38 norm stood at 2 980 k€ against 2 736 k€ in the company’s accounts accounted under the R&D charge. The correction of this error impacted the 2016 operating profit and net profit for an amount of 244 k€.

Incl. deferred tax credit on loss carryover

20ATEME © 1991-2018

IPO July 2014

20162015

2014

Successful Strategy Since the IPO 2017

50 hires in 12 months (R&D in France, Support engineers and Sales in all 4 regions)

€12.3m

€-2.5m

€15.0m

€-1.6m

€16.3m

€0.0m

€22.5m

€12.9m

€-1.1m

€11.9m

€-0.9m

Phase 2:Design of TITAN 4 and reorganization of international offices

Phase 3: Commercial launch

165

135

170

€3.6m

Revenues

Net Loss/Profit

Growth acceleration in H2 2016: a 2 years ROI since the IPO

€20.9m

220

€0.3m

Phase 1: 30 hires in 6 months (opened Rennes R&D office)

€27.7m

€3.5m

21ATEME © 1991-2018

2017/12/31 Balance Sheet

Consolidated data - IFRS – in thousands of euros

2017/06/30 2017/12/31

ASS

ETS

Non-current assets 5,437 6,310

Current assets 26,775 32,591

o/w stocks 3,930 2,660

o/w trade receivables 13,390 23,718

o/w cash and cash equivalents 5,269 2,451

32,211 38,901

LIA

BIL

ITIE

S

Shareholders’ equity 14,282 18,917

Non-current liabilities 4,465 4,787

o/w non-current financial debt 3,895 4,222

Current liabilities 13,465 15,197

o/w current financial debt 1,598 1,622

o/w trade payables 6,272 6,72232,211 38,901

o/w 13.5 M€ not yet due linked to strong activity in Q4

22ATEME © 1991-2018

2017 FCFConsolidated data - IFRS – in thousands of euros

Increase in trade receivable (+10,3 M) linked

to the robust activity in Q4 (+38% in

revenue), especially in December

Cash position end of December 2017: €2.4m

Increase in self-financing capacity “CAF”

New mid-term bank loan on H1 (0.7 M) and H2 (1 M)

2016 2017

Net Profit (Loss) 1,968 3,819

(-) Elimination of non-cash elements (2,086) (1,937)

Gross cash flow 4,053 5,756

(-) Change in Working Capital 1,690 6,607

Cash flow from operations 2,363 (851)

Cash flow from investing activities (1,635) (1,756)w/o new tangible and intangible fixed assets (816) (1,110)w/o capitalisation of development costs (787) (607)

Cash flow from financing activities (795) 979w/o exercice of stock-options 0 905w/o new loans and contingent advances 0 1,700w/o interest expense (13) (14)w/o repayment of loans and contingent advances (907) (848)w/o repayment of financial leases (122) (241)w/o other financial flows (including factoring) 247 (523)

Currency effect (61) (27)

Net Change in Cash (128) (1,656)

Opening Cash position 4,222 4,094

Closing Cash position 4,094 2,439

23ATEME © 1991-2018

1. ATEME

2. Market Trends

3. Financial Performance

4.Strategy

24ATEME © 1991-2018

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

25ATEME © 1991-2018

Service Providers To Upgrade Their Distribution Infrastructure

à

CONTINUED NETWORK INVESTMENT NOT MEETING VIDEO DEMAND GROWTH

VIDEO IS CLOGGING THE NETWORKS

Unveils $14 Billion Infrastructure Plan

26ATEME © 1991-2018

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

27ATEME © 1991-2018

20202018Win the Video

Head End market and prepareexpanding to Network

Gross Margin expected up(shift to software)

Increasing operating profit every year

Toplineexpected to grow min 20%per year, with contribution from all 4 regions

3 Years 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

28ATEME © 1991-2018

Investors Relations

Next investor dates

Market data

ISIN: FR0011992700 - Ticker: ATEME

Stock price: €18.20 (as of 26 March 2018)

Market cap: €187 m (as of 26 March 2018)

Shareholder structureNumber of shares: 10,284,539Potential dilution : up to 227,244 shares

8,9%

11,7%

64,5%

14,9%

ELIGIBLE PEA PME

Business angels

Free float

Founders and management

VCs

Liquidity contract: Gilbert Dupont

Source : company, as of 31 Dec. 2017

May 4, 2018 2018 First Quarter Revenues

June 7, 2018 Annual Shareholders Meeting

July 25, 2018 2018 Half-Year Revenues

Sept. 27, 2018 2018 Half-Year Results

Nov. 8, 2018 2018 Third Quarter Revenues0

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