Parrot Sa · EURONEXT:PARRO
Parrot Sa — Q1 2016 Earnings Presentation
39 slides from Parrot Sa's earnings presentation, May 2016
Slide 1: Investor Presentation Q1 2016 Financial results
INVESTOR PRESENTATION Q1 2016 Financial results - March 2016
Slide 2: Contents
Contents Sections 1 Parrot at a glance 3 2 Drones are a new industry with consumer and commercial applications 7 3 Parrot is a pioneer and leading innovator in the drone industry 13 4.1 Consumer drones 16 4 4.2 Commercial drones 20 5 Financial earnings / 2016 outlook 24 6 Appendices 32
Slide 3: Parrot at a glance
1 Parrot at a glance
Slide 4: A 22-year old company that has successfully adapted its business model
A 22-year old company that has successfully adapted its business model over the years… 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, compan
Slide 5: Increasingly positioning itself to become a leading drone company
…increasingly positioning itself to become a leading drone company Automotive: €125 m (FY15 rev.) 38% Drones: €183 m (FY15 rev.) Connected devices: 56% -13% 2015 vs. 2014 +121% 2015 vs. 2014 €15 m (FY15 rev.) +6% 2015 vs. 2014 5% Retail Automotive: connected systems Consumer Commercial MiniDrone Col
Slide 6: Strategic repositioning of its Automotive business
Strategic repositioning of its Automotive business › Parrot’s historical core business Very early identification of business potential with disruptive technologies: initial development in the mobile phone ecosystem focused on the use case in the automotive industry Parrot’s ability to address th
Slide 7: Drone technology is evolving beyond its military roots
Like the Internet and GPS before, drone technology is evolving beyond its military roots to encompass a broad array of business applications. 2 Drones are a new industry with consumer and commercial applications
Slide 8: Parrot is the leisure drone market pioneer
Parrot is the leisure drone market pioneer 1 Parrot is a market builder Most popular consumer drones currently include: › True market leader with widest offer: 4 of top 5 best-selling retail drones in Europe were Parrot’s (GFK 01-09/2015 - 12countries) › Well adapted offer (accessible, compact, with
Slide 9: Parrot is building long-term value on the commercial UAV market
Parrot is building long-term value on the commercial UAV market FOR FOR MINING GIS FOR FOR SURVEYING AGRICULTURE FOR FOR ENVIRONMENTAL HUMANITARIAN AID PROTECTION & CONSERVATION Source: senseFlly UAVs are bringing the next level of big data to multiple sectors
Slide 10: Commercial & Prosumer UAV Drone market expected to grow at a phenomenal pace
Commercial & Prosumer UAV Drone* market is expected to grow globally at a phenomenal pace Commercial & Prosumer UAV drone market, 2015 vs. 2020 (in $bn) Key market drivers › Productivity gains for a wide range of commercial and professional applications 5.6 Drone ecosystem brings high precision da
Slide 11: Parrot is focusing on 3 highly scalable commercial markets
Parrot is focusing on 3 highly scalable commercial markets Mapping & Surveying Precision Agriculture Inspection & Monitoring Growth expectations between 2015 and 2020 (in $m / CAGR - Source: Marketsandmarkets) 1,194 +36% 1,229 +42% +24% 431 263 150 205 Key takeaways › Fast, accurate and cost-effecti
Slide 12: Expected changes to the regulatory framework
Expected changes to the regulatory framework in which Parrot aims to play a role Parrot active in the structuring of the regulatory Disruptive technology: Specific legislation per framework Context regulatory framework not country / region stabilized yet Founding member › Europe: mostly favorable an
Slide 13: Parrot is a pioneer and leading innovator in the drone industry
3 Parrot is a pioneer and leading innovator in the drone industry
Slide 14: Parrot is well positioned to be an accelerator in the Drone ecosystem
Parrot is well positioned to be an accelerator in the Drone ecosystem > 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-perf
Slide 15: Pioneer with key positions on all civil drone market segments
Pioneer with key positions on all civil drone market segments 2010 2013 2014 2015 2016 …. Consumer €100 < €500 AR.Drone €299 - 380g AR.Drone 2 €299 - 380g Rolling spider Jumping Sumo €159 - 180g Hydrofoil Jumping series Airborne series €169 - 247g €199 - 205g €99-€129 - 54g … €99 - 65g Bebop 1 Bebop
Slide 16: Consumer drones
4.1 Consumer drones
Slide 17: Wide range of products to popularize market
Wide range of products to popularize market with an effective pricing strategy and build up brand Key differentiating factors for Parrot products All-in-one and Light weight: Quality focused Affordable price Fun design ready-for-use below 500g and high features MiniDrones Flying cameras Bebop 1 and
Slide 18: Strengthening our expansion in consumer drones
Strengthening our expansion in consumer drones › Grow and leverage brand recognition supporting our vision “Parrot =a drone in every household ” Grow a strong › Enhance high tech content and ability to constantly enrich customer experience brand › Maintain focus on light weight compact devices that
Slide 19: Leveraging a firmly established organization
Leveraging a firmly established organization 18-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 the leading Asian EMS providers network with both retail stores and
Slide 20: Commercial drones
4.2 Commercial drones
Slide 21: Successful acquisition-led strategy creating early stage market leaders
Successful acquisition-led strategy creating early stage market leaders 1 2 3 4 › Mapping software (SaaS) › Drones › Data processing plugs and › Data processing plugs and software (SaaS and Cloud software › First contact: July 2012 › First contact: July 2012 Services) › First contact: September 2014
Slide 22: Focused on 3 key value-added markets with strong growth potential
Parrot is focused on 3 key value-added markets with strong growth potential Mapping Agriculture Inspection Hardware eBee eXom eBee AG eXom eBee eXom E-Vigilante Payloads ThermoMAP MultiSpec 4 RedEdge Sequoia ThermoMAP Software (in progress) DATA ANALYTICS AGRIDRONERS (FR, GB, DE, DA, USA) SUPPORT PR
Slide 23: Precision farming case study
Precision farming case study 1 2 eBee: the agriculture drone The sensor: data collection › Professional mapping drone, used to capture › Various sensors adapted for different crop high-resolution aerial data well known for its types performance, ease of use and reliability › Recognized expertise in
Slide 24: Earnings / 2016 Outlook
5 EARNINGS / 2016 OUTLOOK
Slide 25: Clarity across Parrot's main growth drivers
Clarity across Parrot’s main growth drivers Income statement (€m) Revenue breakdown (€m) Consolidated accounts - IFRS Drones Automotive Connected Objects & Others Q1 2016 Q4 2015 Q1 2015 (€M) 5% 5% Revenues 33.1 108.2 71.0 16% Gross margin 4.1 50.4 31.7 27% % of revenues 12.4% 46.6% 44.6% 45% R&D co
Slide 26: Q1 2016 – Sales & marketing reorganization
Q1 2016 – Sales & marketing reorganization Revenues in €M 71.0 A strategic choice to quickly optimize sales and marketing organization ? Sell through > Hired a top Sales & Marketing manager 34,6 Couponing 1,7 49.4 > Reduce retailers traditional level of inventories to align organization to 5,0 Stock
Slide 27: Q1 2016 earnings - Conference call on May 13, 2016
Q1 2016 earnings - Conference call on May 13, 2016 27
Slide 28: Sound balance sheet
Sound balance sheet Statement of financial position – December 2014 Statement of financial position – December 2015 At December 31, 2014: €311m At December 31, 2015: €655.6m Goodwill 40 Goodwill Intangible and Intangible and 52 tangible assets tangible assets Shareholder’s Shareholder’s 184 Inventor
Slide 29: 2016 outlook: focused innovation, setting foundations for growth
2016 outlook: focused innovation, setting foundations for further, long term profitable growth › For commercial drones: accelerate verticalization strategy and market penetration on the three core industries (mapping, Strategy precision farming and inspection) › For consumers drones: accelerate capa
Slide 30: 3-year guidance
3-year guidance Focus on driving growth in Leverage Parrot’s key strengths to generate profitable growth the Group’s business and › Unique positioning on consumer segment › Competitive commercial offering, well adapted to customers’ needs consolidating its position › Ability to offer high value-adde
Slide 31: Key investment highlights
Key investment highlights › A 22-year old well-established technology company with strong innovation DNA › A pioneer and a leader in the fast-growing Drone industry with an established position on all civil drone market segments › A unique integrated player active across the entire value chain (hard
Slide 32: Appendices
6 Appendices
Slide 33: €300m capital increase in Dec. 2015
€300m capital increase in Dec. 2015 › €299 million rights offering Including €17m for two tranches of warrants (BSA 1 / BSA 2) attached to the new ordinary shares Each existing shareholder received 1 preferential subscription right for each share held: Ratio: 7 ABSA for 5 existing shares Subsc
Slide 34: Use of proceeds
Use of proceeds Description % of total uses 1 › Recruitment of dedicated engineers for designing consumer and prosumer products Lead the innovation Objective to launch one new product per year per category (consumer and commercial) 15-20% and technology race › Recruitment of dedicated engineers fo
Slide 35: Experienced management team led by highly motivated entrepreneurs
Experienced management team led by highly motivated entrepreneurs Management team Henri Seydoux Jean Christophe Zufferey Christoph Strecha › Founder, Chairman & CEO › CEO and co-founder of › CEO and co-founder of Pix4D › 22 years at Parrot senseFly since 2011 since 2011 › Former PhD supervisor at ›
Slide 36: Qualified and independent Board of Directors
Qualified and independent Board of Directors Board of Directors Henri Seydoux Jean-Marie Painvin, Director Edward Planchon, Director Chairman and Chief Executive Officer CEO of the Deutsch Group Audit committee Global industrial expertise Global Automotive expertise Olivier Legrain, Geoffroy Roux de
Slide 37: Disclaimer (1/3)
Disclaimer (1/3) Important notice: by attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the limitations and qualifications outlined below. This presentation and the information contained herein have been prepared by Parrot S.A. (th
Slide 38: Disclaimer (2/3)
Disclaimer (2/3) Any information in this presentation is purely indicative and has no contractual value. Such information is subject to modification at any time, including without limitation as a result of regulatory changes or changes with respect to market conditions, and none of the Company, Nati
Slide 39: Disclaimer (3/3)
Disclaimer (3/3) In relation to each Member State of the European Economic Area, other than France, which has implemented the Prospectus Directive (each, a “Relevant Member State”), as the case may be, as amended by the 2010 PD Amending Directive to the extent implemented in the Relevant Member Stat