Parrot | Q1 2015 2

French technology

company founded

in 1994 by

Henri Seydoux

Fablessmodel

2 proprietarychipsets

for all the products

12 subsidiaries for

Retail and Key

Account

distribution in 80

countries

~950 people with+50% on R&D

Octopus Parrot

3 cote business lines : Automotive, Drones, Connected Devices

3

AR.Drone 2.0

299 - 349 € / 299 $

MiniDrone Jumping Sumo

159 € / 159 $

MiniDrone Rolling Spider

99 € / 99 $

Bebop Drone

499 - 899 € / 499 - 899 $

Minority investments

7,6

34,6+356%

83%

17%

Parrot | Q1 2015

5,3

28,6

2,3

6

Q1 2014 Q1 2015

Retail drones Professional drones

4

Asteroid Mini

249 € / 299 $

Asteroid Tablet

349 € / 399 $

Asteroid Smart

549 € / 599 $

Mki 9200

209 € / 249 $

Chipset

& Modules

Cellphone

& Multimedia

Connectivity

Rear Seat

Entertainment

Smart

Antenna

Mki 9000 & 9100

139 € / 169 $ - 229 $

CK 3000 & 3100

99 € / 119 $ - 179 $

-9%

35,031,9

35%

65%

NB : à compter du T1 2015, les produits

Plug & Play (2,4 M€), précédemment en

Objets connectés, sont comptabilisés dans

l’Automobile. A périmètre comparable CA

recul de 16%.

MiniKit Neo 2 HD

79 € / 99 $

Parrot | Q1 2015

11,9 11,1

23,120,8

Q1 2014 Q1 2015

Retail automotive

Key Accounts automotive

93%

7%

2,5

3,9

2,0

0,3

0,3

Q1 2014 Q1 2015

Plug & Play Connected objects Audio

Headphones

Zik 2.0

349 € / 399 $

Flower Power

49 € / 59 $

-14%

35,0

31,9

NB : à compter du T1 2015, les produits

Plug & Play (2,4 M€), précédemment en

Objets connectés, sont comptabilisés dans

l’Automobile. A périmètre comparable CA

augmente de 46%

3 to 4 teams

are working on

long-term

projects

5Parrot | Q1 2015

7,6

34,6

35,0

31,9

4,9

4,2

Q1 2014

Q1 2015

49%

44%

6%Drones

Automotive

ConnectedDevices

Other

16%

73%

10%

6Parrot | Q1 2015

Consolidated accounts IFRS (€M) Q1 2014 Q1 2015 Change

Revenues 47.9 71.0 +48%

Gross operating margin 23.9 31.7 +33%

% of revenues 49.8% 44.6%

Research and development costs -11.6 -14.8 +28%

% of revenues 24.2% 20.9% -14%

Sales and marketing costs -8.8 -12.6 +43%

% of revenues 18.4% 17.8% -3%

General and administrative costs -3.4 -4.5 +32%

% of revenues 7.2% 6.3% -13%

Income from ordinary operations -3.6 -3.7 +3%

% of revenues 7.5% -5.2% -169%

EBIT -3.3 -4.4 +33%

% of revenues -6.9% -6.2% -10%

Financial income / expense 0.3 0.7 +133%

Share in income from associates - - -

Corporate income tax -0.9 -1.0 +11%

Net income -3.8 -4.7 -24%

Net income (group share) -3.6 -5.1 -42%

% of revenues -7.6% -7.6% -

7

› In line with the guidance of accelerated growth

› Gross margin impacted by the rising dollar(50% of revenues in USD, 90% of costs)

› R&D: decrease in capitalized R&D add € 4.1 millions of P&L expenses

› Increasing the share of retail products, higher marketing budgets

› Careful management of G&A and P&Q

› Non-current: patent litigation in the US, costs of the new organization

› Operating expenditure: €35.7 M

› Foreign exchange gain

› Not activated during the quarter

› Minority interests: Drone investments

Parrot | Q1 2015

Drones

Commercial and Retail

Automotive

Key account and RetailConnected devices

Other

(Varioptic)

Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015

Revenues 7.6 34.6 35.0 31.9 4.9 4.2 0.4 0.3

EBIT -1.4 -3.3 0.8 2.1 -2.4 -1.8 -0.5 -0.9

% of revenues -18% -10% 2.0% 6% -49% -44% - -

8

›Managing rapid growth

›Meeting end customers’ needs

›Supporting the implementation of legislation

›Positioning

›Technology

›Visibility

›Expand the range

›Achieve growth

›Develop synergies

›Transition dependent on auto industry cycles

›Time to market, size

›4 years of investments

›Advanced technologies

›Automotive history

›Finalize developments

›Target requets for proposals

›Difficulty predicting the success of new products

›Calibrating of spending

›Visibility

›Positioning

› Innovation

›Expand the range

›Grow sales and reduce losses

› Start-up phase

› Advanced

technologies

› Identify the buoyant

market

› Achieve growth

Parrot | Q1 2015

12,5 11,2 11,5 10,4 11,6 12,7 13,216,2 14,8

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

P7 / Octopus 2 and 3

P7 / Octopus 3

infotainment prospecting

Asteroid

9

7,3 8,3 5,6 6,5 7,4 6,8 6,8 6,6 6,6

2,6 3,0

2,6 4,0 1,9 3,2 4,2

7,74,3

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Sales Marketing

443 491 502

191205 194

8495 91

133

153 148

Q1 2014 Q4 2014 Q1 2015

R&D S&M G&A P&I

67%

14%

3%

13%

France

Rest of Europe

United States

Asia

851

944 935

Parrot | Q1 2015

48,6 46,3

34,930,6 29,0 31,4 33,8 33,2

46,9

41,4

32,0 29,424,2 21,3 18,5

21,7

31,8

42,8

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Working capital Inventories

10

0,7

-4,0

0,0

72,7

17,1

-13,4

0,0

77,2

-11,5-1,1 -2,5

66,0

Cash fromoperations

Intangibleinvestments

Share buybacks Cash

March 31, 2014 December 31, 2014 March 31, 2015

72,8

77,2

66,0

20,9

12,5 11,7

March 31, 2014 December 31, 2014 March 31, 2015

Debts Cash

Parrot | Q1 2015

0 00000

Goodwill

Fixed assets

Inventories

Trade and

other

receivables

Cash and

current

financial

assets

OtherEquity interest

Provisions

Shareholder’s

equitiy

Trade

payables

Other liabilities

Minority interests

Financial debt

Assets

11

Liabilities

8,80

77,7

76,4

42,8

51,7

40,3

48,6

47,1

11,7

12,5

177,8

Parrot | Q1 2015

Goodwill

Fixed assets

Inventories

Trade and

other

receivables

Cash and

current

financial

assets

OtherEquity interest

Provisions

Shareholder’s

equitiy

Trade

payables

Other liabilities

Minority

interests

Financial debt

Assets Liabilities

2,16,3

89,7

88,7

31,8

52,1

39,9

-0,9

42,9

61,2

12,5

11,1

183,8

0

50 000

100 000

150 000

200 000

250 000

300 000

0

5

10

15

20

25

30

35 Volume Share price

12

Horizon (holding structure owned at 99.9% by

Henri Seydoux)

35,8%

Covéa Finance5,00%

Parrot SA4,50%

Public54,70%

Parrot | Q1 2015

13Parrot | Q1 2015

14Parrot | Q1 2015

15

Retail drones

Commercial drones

Large volumes

Low component

costs

Low component

costs

High value added

software

More than 1.5 millions drones sold since 2010

Unique positioning : Retail Drones / Commercial Drones› R&D phase launched since 2006, consolidated with technological

acquisitions since 2012

Advanced development› Retail drones : a full range

› Commercial drones: the worldwide leader in fixed wing UAV

Technological expertise helping ensure a low regulatoryimpact› Drone = flying software / proprietary patents (image stabilization for

taking photos and controlling the drone)

› Light drone = little regulatory impact

› Toy drone = user’s responsability

A flexible approach to business models

Different models being tested

An economic model in line with Group requirements

Parrot | Q1 2015

›2014 Revenues: € 11.1 M

›2013 Revenues: € 6.3 M

›Proprietary autopilot

›500 to 700 gr

›16 million pixels

›35 to 45 min. of flight time

›36 to 57 kmph speed

›45 kmph wind resistance

› 2014 Revenues: € 3.2 M

› 2013 Revenues: € 2.3 M

› Proprietary software

› 3D mapping and modeling

› Orthomosaic, digital atlimetric

models, scatter plots

16

3D Mapping

Assessment of forest

fire damagePrecision farming

Mining operations

Parrot | Q1 2015

Fields, forests, crops, etc.Mines, quarnes, real estate projects, etc.Electricity network, gas pipelines, bridges, dams, sites, warehouses, etc.

›Estimated global market of $15 billion In

2014

›2 million km of roads worldwide

›1 million civil engineering structures in

America

›$5 billion market in 2011

›100,000 open-cast quarries worldwide

›500,000 farms over 10km² worldwide

17

0

50 000

100 000

150 000

2015 2016 2017 2018

Annual numbers of Drones used for agriculture in

the US

Source : AUVSI (Association for Unmanned Vehicule System

International), March 2013 study: “The economic impact of

unmanned aircraft systems integration in the United States

Parrot | Q1 2015

› Agridrone et agridronistes :

drones and pilots for precision

agriculture

› Calculation of average nitrogen

requirements for plots

› Automatic intra-plot modulation

map

› Agronomic analysis map

› Index calculation

› Correlation with field-based

samples

› High-throughput phenotyping

› Population estimation

› Proprietary autopilot

› 2 kg

› 100 km endurance / 2 hr

› Beyond Line of Sight (BLOS)

capability

› Ground-based station with

antenna pointing for range of

over 15 km per relay

› Real-time surveillance with video

transmission for remote piloting

from the ground

› Simultaneous Localization and

Mapping (SLAM)

› LIDAR (Laser) and Vision

mapping

› Night vision

› Autonomous movement

› Detection from 20 to 80 m

› Secure 5.8 GHz transmissions

› Smart energy management,

independent induction-based

recharging

› Ease-of-use

› Production cost / sales price

› Regulatory constraints

18

› MicaSense RedEdge, advanced

camera optimized for use on

unmanned drones

› Precise multi-band data for

agricultural remote detection

applications

› 1 capture per second

› 190 grams

› Reduced size: 12.2 x 7.4 x 3.8cm

› Integrated wifi for remote control

and viewing

› Image optimization

Parrot | Q1 2015

19

Telecoms expertise geared to

the in-car environment

Coverage of all user scenarios

Compliance with quality

standards

Knowledge of consumers’

expectations

Apps tailored to the in-car

environment

Direct or private-label sales

Technologies( proprietary)

Expertise Content

20Parrot | Q1 2015

Multiple challenges in

the connected car for

the manufacturers

Slow innovation cycles

Need for a broad 4G

coverage PARROT

Complete and upscale

offer

Limited size

9 contracts including 3

into production

Dependence on innovation cycles in the automotive

industry

21

+ € 60 M invested

Parrot Asteroid, pioneer consumer

solution launched in 2010

Leading manufacturers

6 to 24 months of development / contracts

Disproportion between

the price of the

solutions and the size

of Parrot

Despite significant

production capacity

from leading EMS

Adaptation of the strategy:

Gain time to meet the cycle of the industry,

maintain profitability and

release power for the drone activities

Subsidiarization of the OEM Automotive

Pause new Retail Automotive development

Focus on R&D prospects who may go into production

Parrot | Q1 2015

22

Team of 3 to 5 people for 1 to 3 years

An original product capable of generating a gross margin of >35% designed with widely

available telco components and able to be sold through an existing distribution channel

› Identify new uses

› 3 to 5 projects under development

› Flexible timeframes

› Key Account opportunities

Parrot

Technologies

New

technologies

Capteurs

Agricoles

23Parrot | Q1 2015

Expanding the successful product portfolio to minimize the weight of long-term expenses

25

Contraction in line with 2014

Sustaining profitability

Strategic review process

› Accelerating growth

› Improving profitability(highly dependent on sales performance of the 4th quarter)

Strong growth

Investment in R&D, sales and production

Strengthen technological and commercial advance to develop a leader

Parrot | Q1 2015

26

This list is subject to change at any time

Parrot | Q1 2015