How 5G Enables More Video Opportunities

Sept 2019

2ATEME © 1991-2019

1.ATEME for beginners2. The 5G Opportunity

3. Conclusion

3ATEME © 1991-2019

ATEME Factsheet

36 Patents

250 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

4ATEME © 1991-2019

A Complete Offer for the Complete 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

5ATEME © 1991-2019

TITAN Business Model: Moving From Provider to Partner

Industry standard : Project based business model New business model : Multi-year Engagement

• TITAN pay-up perpetual licenses (1 license per SD/HD/UHD channel)

• Recurring Annual support 15-20%

• Optionally some clients source the servers from ATEME

ATEME benefit: revenue predictability

Customer benefit: guarantee their move to a new video compression vendor is future proof

Year1 Year2 Year3 Year4 Year5

*

*Optionally some clients source the servers from ATEME

“Recurring CAPEX”:

• Most clients need additional licenses for extensions• Largest clients operate in multiple sites or countries

Each project includes: Largest clients operate multiple video headends

We offer these clients to “drive” ATEME software roadmap against multi-year commitment

6ATEME © 1991-2019

1. ATEME for beginners

2.The 5G Opportunity3. Conclusion

7ATEME © 1991-2019

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 :

2018

75%Source : Cisco Visual Networking Index

2022

82%

8ATEME © 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

9ATEME © 1991-2019

Higher Resolution Race for Attracting New Customers

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.

Disney+ to Offer D2C service in 4K HDRIn competition with Netflix, the service will offer resolutions up to 4K, with Dolby Atmos object-based sound, high dynamic range (HDR) support, and even support for Dolby Vision.

KT to provide real time 5G 8K video Trial for 2021 French Open Tennis tournament, by connecting the 5G network in South Korea and transmit it to Europe through the satellite.

10ATEME © 1991-2019

5G : Faster Data, Increased Bandwidth, Higher Resolutions

5G: New cellular network standard for enhanced broadband access

Source : Whattmpbile

HDSD 4K/UHD

11ATEME © 1991-2019

5G Enables 4K Backhauling and Fast Connectivity to Remote Areas

Remote Production

Without 5G

With 5G

SatelliteSatelliteSatellite

IP/Fiber IP/Fiber IP/Fiber

5xUHD

5xHD

10xHD UHD in Metropolitan areasHD in suburrbs

SD in rural areas

Remote Production

IP/Fiber

10xUHD

15xUHD UHD in Metropolitan areasUHD in suburrbsHD in rural areas

Satellite

5G 5G

IP/Fiber

5G

More data = more or higher resolution videos (UHD) = More opportunities for ATEME

12ATEME © 1991-2019

ATEME Already Supports All Video Standards to Enable 4K/8K

HDR (High Dynamic Range) = Increase of brightness, mandatory for 4K Wow Effect

ATEME’s IBC 8K/VVC* Demonstration

*New video standard standardized in 2020

13ATEME © 1991-2019

1. ATEME for beginners

2. The 5G Opportunity

3.Conclusion

14ATEME © 1991-2019

5G Race : Trials in ’19, Roll-out Upcoming

All Major Operators are Lineing-Up

15ATEME © 1991-2019

How 5G Translates in $$$/€€€€

5G = Higher Bandwidth & Low Latency

UHD Everywhere = More TITAN Encoders = Increased Software Sales

UHD Has Finally Cellular Network that can transmit UHD End-to-End

16ATEME © 1991-2019

ATEME Will Keep Growing

ATEME Stand on IBC 2019

17ATEME © 1991-2019

Investor Relations

Next investor date

Market data

ISIN: FR0011992700 - Ticker: ATEME

Stock price: €10.98 (as of August 27, 2019)

Market cap: €114.5m (as of August 27, 2019)

Sept. 26, 2019 2019 Half-Year Results

Nov. 5, 2019 2019 Third Quarter Revenues

Concert Artières

12%

Xavier Niel5%

Keren Finance

6%

Axa IM5%

Others < 5%72%

Liquidity contract: Gilbert Dupont

Source : Company, as of June 28, 2019

Shareholder structure Stock Price (€) Volume (€)

Number of shares: 10,454,313Potential dilution : 177,813

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