INVESTORS PRESENTATIONMARCH 2017

2ATEME © 1991-2017

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

3ATEME © 1991-2017

1.ATEME2. Market Trends

3. 2016 Performance

4. Strategy

4ATEME © 1991-2017

ATEME Factsheet

22 Patents

175 people in 13 countries

700 clients in 100 countries

Public since 2014

Sales & Support Los Angeles

America Ops CenterDenver

Sales & Support NYC

Support Miami

LATAM Ops CenterSão Paulo

Sales & SupportMexico City

Sales & SupportSantiago

SupportBuenos Aires

HQ, Paris

R&D centerRennes

Sales & SupportDubai

Sales & SupportNew Delhi

APAC Ops CenterSingapore

Sales & SupportSeoul

Sales & SupportShenzhen

37,5 M€ in 2016 (+31%)

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

services, while preserving picture quality.

Headquarters

Offices

Sales & SupportSydney

5ATEME © 1991-2017

Over a Century of Combined Domain Leadership

CTO Pierre Larbier• 20+ years of compression innovation, 10 compression patents • DVB, ASTC, SMPTE, AOM Committees & Standards

R&D Thierry Marre• 20+ years of telecom & video engineering • Led +100p SW agile teams

APAC Sales Yoann Poizeau• 10+ years supporting tier-1 service providers• Led Dalet APAC sales

Product Remi Beaudouin• 10+ years in video compression exec management• Lead WW Product Management/Marketing teams

Strategy Yossi Aloni• 20+ years of exec positions with operators, system

vendors and technology providers

Latin America Sales Ezio Sanchez• 20+ years supporting tier-1 service providers• Led NDS, Thomson & Conax Latam sales

North America Sales Chad Hassler• 20+ years supporting tier-1 service providers• Led Scopus & Harmonic sales

EMEA Sales Emmanuel Boureau• 20+ years supporting tier-1 service providers• Led Ericsson & Harmonic sales

6ATEME © 1991-2017

What is Video Compression and Why it Matters

• Compression is a Must. Video is 80% of the internet traffic*.

• The encoding technology is key

• ITU (Geneva) defines international standards MPEG-2 (1994), MPEG-4 (2003), HEVC (2013).

• An intelligent encoder (eg. including objects tracking algorithms) requires less bitrate for the same video quality (or generates a better video quality at a given bitrate).

• The decoder is passive (2 decoders would always display the same video). No innovation there.

Whatever the network (cable, internet, satellite, terrestrial), digital video has to be compressed 500x typically

Uncompressed HD Video

~ 2 Gbits/s Encoder

CompressedHD Video

~ 4 Mbits/s

Decoder

* Cisco Visual Networking Index

7ATEME © 1991-2017

ATEME member of Alliance for Open Media

Internet leaders partnering to standardize AV1 in 2017, a royalty-free alternative to HEVC

Technology Leadership through Standardization Activities

Television Formats

Co-Chairmanship of 2 working groups at ITU for HEVC

Final Performance of the HEVC Standard

ATEME involvement in the standardization activities is unique amongst video compression vendors

8ATEME © 1991-2017

Video Flow

Service Provider(Satellite, Cable, Telco)

Video Headend

Content ProviderTV Network

Event

ContributionPrimary

Distribution Distribution

OTT / Multiscreen

Subscriber

9ATEME © 1991-2017

TV StationEventKyrion encoders in the trucks and decoders at the TV station

Launched in 2007, used for the most prestigious events embeds ATEME

compression software on a FPGA

processor

CLIENTS broadcasters and service providers (direct), truck operators (indirect)

CAPEX (refresh cycle ~ 4 years) + Annual Support &

Maintenance

Ericsson Video Quality, Upgradable (Software)

TECHNOLOGY BUSINESS MODEL COMPETITION USPs

ATEME’s Kyrion Leading the Contribution Market

CLIENTS

10ATEME © 1991-2017

Service Provider (Cable, Telco, Satellite)

Video Headend

Subscribers

TITAN is a virtualized Video Headend software covering all Live and File needs

Launched in 2009 (VOD) and 2011

(Live)

100% ATEME software

Recurring revenues despite perpetual

licenses model+ Annual Support &

Maintenance

Video Quality, Speed / Density,

100% Home Grown Software, Flexibility

Harmonic, Ericsson,

Cisco

TECHNOLOGY BUSINESS MODEL COMPETITION USPs

CLIENTS

ATEME’s TITAN the Distribution and OTT Challenger

11ATEME © 1991-2017

Strategic Partners

Enabling access to Service Providers datacenters

Better exposure, lower cost solution

Enabling transition of Service Providers to datacenters

Better performance (video quality / density)

12ATEME © 1991-2017

1. ATEME

2.Market Trends3. 2016 Performance

4. Strategy

13ATEME © 1991-2017

Growing Access to €1B Video Infrastructure Market 2017

€250mPrimary Distribution

€100mContribution

€300mMultiscreen

€350mDistribution

ATEME core segment IPO enabled , Winning now

Segment

Access

ATEMEProduct

Sources : Frost & Sullivan (2014), Company

SW Shift in Progress

14ATEME © 1991-2017

Video Growth DriversContinued Demand for High Efficiency Compression

More Screen Time

TV declines but overall screen time is increasing

Content Explosion

DelinearizationMore channels, more content

Monetization Opportunities

Multiplication of distribution formats

New Distribution Models

Multiscreen, OTT

Ultra HD Television

4K, HDR, WCG, HFR

+13%Daily screen time

from 2011 to 2015

source: eMarketer, Apr. 2015

15ATEME © 1991-2017

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 agoVideo Head Ends consisted in

heterogeneous specialized hardware for each operation

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

Legacy VHE

16ATEME © 1991-2017

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

17ATEME © 1991-2017

1. ATEME

2. Market Trends

3.2016 Performance4. Strategy

18ATEME © 1991-2017

FY 2016 Revenue Acceleration

2011 2012 2013 2014 2015 2016

Q1 Q2 Q3 Q4

€37.5m

€28.6m

€13.1m

€17.9m

€21.0m

€24.8m

+31%

CAGR : +23%

IPO

19ATEME © 1991-2017

Regional Performance

+68%

+75%

=

+83%

32%of 2016 Rev

43%of 2016 Rev

11%of 2016

13%of 2016

EMEA

• High base effect (growth of 30.4% in 2015)

• Reorganized sales and operations for 2017

USA/Canada

• Continued Investment• Stronger presence

(Denver office and lab, NYC next)

• Tier1 operators won

Latin America

• Continued investment• Stronger presence

(Mexico, Argentina, Peru next)

• Tier1 operators won

APAC

• Continued investment• Reorganized sales and

operations (Singapore, China, Korea)

• Key partners won

20ATEME © 1991-2017

H1 2016 P&L

Consolidated data - IFRS – in thousands of euros

H1 2015 H1 2016 % change

Revenue 12,329 14,983 +21.5%

Gross profit 5,983 7,577 +26.6%

Gross margin 49% 51%

R&D expenses (2,773) (2,640) -4.8%

Sales & marketing expenses (5,587) (5,914) +5.9%

Other G&A expenses (654) (655) +0.2%

Operating profit (3,030) (1,632) ns

Financial loss (100) (80) -20.0%

Financial profit - 8 ns

Exchange effect 593 64 -89.2%

Net profit (2,538) (1,640) ns

Increase in gross margin notably thanks to the growth in software sales

Operating expenses contained:

• Slight increase in marketing expenses

• Stable R&D and other G&A expenses

Operating loss cut in half

Financial profit is balanced

21ATEME © 1991-2017

IPO July 2014

201620152014

Successful Strategy Since the IPO

2017

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

€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

* 29 March, 2017

170

*

Revenues

Net Loss/Profit

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

22ATEME © 1991-2017

2016/06/30 Balance Sheet

Consolidated data - IFRS – in thousands of euros

2015/12/31 2016/06/30

ASS

ETS

Non-current assets 4,811 5,281

Current assets 20,362 18,181

- o/w stocks 3,366 3,792

- o/w trade receivables 9,436 7,789

Cash and cash equivalents 4,225 3,068

25,173 23,462

LIA

BIL

ITIE

S

Shareholders’ equity 11,749 10,085

Non-current liabilities 4 ,616 4,307

- o/w non-current financial debt 4,229 3,910

Current liabilities 8,808 9,071

- o/w current financial debt 939 806

- o/w trade payables 3,754 4,46625,173 23,462

23ATEME © 1991-2017

H1 2016 FCF

Consolidated data - IFRS – in thousands of euros

H1 2015 H1 2016

Cash flow from operations (1,619) (717)

Change in WCR 51 (1,419)

Cash flow from operating activities (1,670) 702

Cash flow from investing activities (1,130) (1,446)

Cash flow from operating activities after investment (2,800) (744)

Interest expense (6) (6)

Repayment of loans and contingent advances (314) (459)

Repayment of financial leases (25) (46)

Other financial flows (including factoring) 197 243

Cash flow from financing activities (149) (268)

Currency effect (54) (147)

Cash flow 3,882 3,064

Positive operating cash flow : €0.7m

• €0.6m linked to the activation of R&D expenses

• €0.7m in the acquisition of tangible fixed assets

Free cash flow : €3.1m

24ATEME © 1991-2017

1. ATEME

2. Market Trends

3. 2016 Performance

4.Strategy

25ATEME © 1991-2017

• TITAN Video Head End software components can be reused in the Network to enable new video delivery schemes

• Clients benefit: huge network infrastructure CAPEX and OPEX savings

• ATEME benefit: huge TAM expansion ($25 Billion) with limited R&D and Sales costs (same clients)

• Similar strategy applied to firewalls proved very successful at Palo Alto Networks

Win The Video Headend, Expand to Video Networking

à

Continued Network Investment Not Meeting Video Demand Growth

Video Is Clogging The Networks ATEME Metro Network Video Processing

Video Grows 3-fold 26% CAGR Unveils $14 Billion Infrastructure Plan Enabling Video Growth Using

Existing Network Infrastructure

26ATEME © 1991-2017

20182017Win the Video

Head End market and prepareexpanding to Network

Gross Margin expected up(shift to software)

Targeting double digit operating profit by 2018

Toplineexpected to keep growing in the 30% range (all regions will contribute)

2017-2018 Plan

S&M investments to

win the Video HeadEnd market and prepare expanding

to Network, but

will not grow as fast as the topline

R&D investments to

prepare expanding

to Network, but

will not grow as fast as the topline

27ATEME © 1991-2017

Why ATEME

Great technology Unique video expertise,

software DNA

High customer satisfaction perfect delivery, project execution and support

World class partners Intel and Dell

Growth track record accurate budget process

and execution

Validatedby reference customers

Vision to leverage our leadership

in the Video Head End and expand our TAM dramatically

Committedteams and leadership

28ATEME © 1991-2017

Investors Relations

Next investor dates

March 29, 2017 : 2016 Year-End Results

May 4, 2017 : 2017 Q1 Revenues

June 8, 2017 : Annual Shareholders Meeting

July 26, 2017 : 2017 Half-Year Revenues

Sept. 28, 2017 : 2017 Half-Year Results

Nov. 9, 2017 : 2017 Q3 Revenues

Market data

ISIN: FR0011992700 - Ticker: ATEME

Stock price: €9.98 (as of 7 March 2017)

Market cap: €100.6m (as of 7 March 2017)

Shareholder structureNumber of shares: 10,077,883

9,1%

12,9%

61,5%

16,5%

ELIGIBLE PEA PME

Liquidity contract: Gilbert Dupont

Business angels

Free float

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VCs

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