Slide 1: Investor Presentation Q4/FY 2017 – March 2017
INVESTOR PRESENTATION Q4/FY 2017 – March 2017
Slide 2: Profile
Profile French technology Fabless model Developing both Global organization Historical strong company founded in Innovation-focused Consumer products serving customers balance sheet supported 1994 by Henri Seydoux, company: and worldwide through by cautious financing CEO and >1000 people, with 50% C
Slide 3: Leading drone company
Leading drone company Connected devices: Automotive: €103 m (FY16 rev.) Drones: €114 m (FY16 rev.) 49% 44% €12.5 m (FY16 rev.) -18% 2016 vs. 2015 -38% 2016 vs. 2015 -19% 2016 vs. 2015 5% Retail Automotive: connected systems Consumer Commercial MiniDrone Collection Asteroid Series 13 products (infota
Slide 4: Automotive: presentation & strategy
Automotive: presentation & strategy › Parrot’s historical core business ▪ Initial development in the mobile phone ecosystem focused on the use-case in the automotive industry ▪ Starting in consumer and moving on to commercial/professional and from mobile phone to smartphone-related technologies ▪ De
Slide 5: Drone technology evolving beyond military roots
“ Like the Internet and GPS before, drone technology is evolving beyond its military roots to encompass a broad array of business applications” Parrot is uniquely positioned on the consumer and professional drone markets
Slide 6: Drones: our vision
Drones: our vision > Low production costs, despite high-tech Improving technologies, Consumer content component capabilities and drones > High sales volumes building tomorrow’s production costs to develop customer base and brand visibility high-performance use-case > Short product cycles/ yearly inn
Slide 7: Consumer drones
Consumer drones Consumer drones All-in-one and ready-for-use Affordable price Lightweight: below 500g Fun design MINIDRONES DRONES AIRBORNE CARGO MAMBO AIRBORNE SWING A.R. DRONE 2.0 BEBOP 2 DISCO FPV €119 – 63 g €139 – 73 g €249 - 380 g €549 – 500 g €1299 - 750g MARS NIGHT MCLANE €99 – 54 g €129 – 5
Slide 8: Consumer drone market environment
Consumer drones Consumer drone market environment 2015 / 2016 main consumer drone players REVEL CONTROL Silverlit Discovery SPACE MOTION SYMA X8HG Hydrofoil Jumping Airborne Mambo Swing €79 – 865 g €115 – 36 g €199 – 200 g CONSUMER €169 – 247 g €199 – 205 g €99/129 – 54 g €119 – 63 g €139 – 73 g < €
Slide 9: Well-established organization
Consumer drones Well-established organization 12 to 24-month product lifecycle 1 2 3 Design Manufacturing Distribution › Best-in-class software engineers › Fabless model with products outsourced to › Solid existing and growing distribution leading Asian EMS providers network with both retail stores
Slide 10: Building long-term value on the commercial UAV market
Commercial drones Building long-term value on the commercial UAV market FOR MINING FOR SURVEYING FOR GIS FOR HUMANITARIAN AID FOR AGRICULTURE FOR THE ENVIRONMENT Source: senseFlly UAVs are bringing the next level of big data to multiple sectors [ 10 ]
Slide 11: Commercial UAV market environment
Commercial drones Commercial UAV market environment 2015 / 2016 main commercial drone players Hardware eBee Albris eBee SQ Inspire 2 H520 Lancaster €7000 / €15000 - max 1800 g Parc €2999 - 3500 g €2500 – 1990 g zenmuse multispectra Payloads x5 l ThermoMAP Soda MultiSpec 4 RedEdge Sequoia 360 omnicam
Slide 12: Uniquely positioned on 3 key value-added markets
Commercial drones Uniquely positioned on 3 key value-added markets MAPPING AGRICULTURE INSPECTION Hardware eBee eBee + / eBee RTK albris eBee RTK / eBee eBee albris eBee SQ AG Payloads ThermoMAP MultiSpec 4 RedEdge Sequoia ThermoMAP Software DATA ANALYTICS AGRIDRONERS (FR, GB, DE, DA, USA) SUPPORT P
Slide 13: Successful acquisition-led strategy creating early stage market leaders
Commercial drones Successful acquisition-led strategy creating early stage market leaders › Photogrammetry (3D imaging) › Drones, flight planning and › Precision Ag sensor, software › Precision Ag sensor, software software (SaaS) payloads and services and services › Drone image processing market › F
Slide 14: Growing services: flexible and opportunistic approach
Commercial drones Growing services: flexible and opportunistic approach 1 2 Drones: AERIAL DATA COLLECTION Sensors & payloads: PRECISION › Professional or consumer-grade › Various sensors adapted for different drones, used to capture aerial data use-cases (thermal, photogrammetry, ▪ Adapt drone to m
Slide 15: Q4/FY 2016 Key Financial Data
Q4/FY 2016 KEY FINANCIAL DATA Following the proposed strategic and capital partnership with Faurecia, announced on November 23, 2016, the OEM Automotive business (Parrot Automotive SAS and its subsidiaries Parrot Automotive Asia Pacific and, indirectly, Parrot Automotive Shenzhen) is presented as he
Slide 16: Profit & loss
Profit & loss Income statement (€m) Revenue breakdown (%) Drones Automotive Connected Devices & Other Consolidated Q4 2016 FY 2016 Q4 2015 FY 2015 FY 2016 accounts - IFRS Pro Q4/Q4 Pro 4% Reported forma Reported IFRS forma 5% 5% 6% (€M) Revenues 108.2 85.1 -21% 326.3 166.4 233.2 27% 33% Gross margin
Slide 17: Cash and working capital
Cash and working capital Change in cash in 2016 (€m) 2015 2016 Cash at year-end Cash at year-start 331.8 331,8 Cash at year-end 201.2 Cash at year-start 77,2 Change in working capital EBITDA 11,6 Investments Investments 18,1 13,3 13,8 Financial investments Financial investments Change in working cap
Slide 18: Balance sheet
Balance sheet Statement of financial position – December 2015 Statement of financial position – December 2016 At December 31, 2015: €653.6m At December 31, 2016: €499.3m Goodwill 58,1 Goodwill 43,6 Intangible and 67,8 Intangible and 13,5 tangible assets tangible assets 46,4 Inventories 68,3 Inventor
Slide 19: Headcount
Headcount 116 113 165 110 159 150 Group Group 1091 547 1048 Group 522 991 503 263 256 228 Parrot SA 56 Parrot SA Parrot SA 56 58 58 63 63 Commercial 34 24 27 16 105 39 Commercial 28 drones Commercial 115 drones 77 236 73 drones 42 75 163 36 254 31 28 101 109 100 Consumer Consumer Consumer drones 262
Slide 20: 2017 Strategy & Outlook
2017 STRATEGY & OUTLOOK
Slide 21: Consumer drones: reorganize and redeploy
Consumer drones: reorganize and redeploy Strong and agile organization rapidly adapting to market changes and opportunities Reduce cost structure by 40% (excl. transition and direct marketing as % of sales costs) Progress tracking › Reduce workforce by 1/3 (approx. 250 people) › Reorganize salesforc
Slide 22: Professional drones: accelerate and support growth
Professional drones: accelerate and support growth Equipment (drones and sensors) › Accelerate fixed-wing penetration building on most recent technologies (eBee +, eBee RTK) at lower prices › Expand with payloads (photogrammetry, thermal, multispectral, etc.) › Develop distribution, territories and
Slide 23: 2017 outlook
2017 outlook Resume growth in consumer drones › Low basis for comparison in H1 › Enhanced product portfolio › Optimized sales and marketing efficiency Resume growth and significantly Accelerate growth in commercial drones reduce operating losses to › Best-in-class product offering and strong organiz
Slide 24: Key investment highlights
Key investment highlights › Well-established technology company with strong innovation DNA and 23-year history › Pioneer and leader in the fast-growing Drone industry with an established position on all civil drone market segments › Unique integrated player active across the entire value chain (hard