Investors presentation

Transcription

1 Investors presentation

2 French technology company founded in 1994 by Henri Seydoux Fabless model 2 proprietary chipsets for all the products 12 subsidiaries for Retail and Key Account distribution in 80 countries ~870 people, with > 50% on R&D Octopus Parrot

3 New financial reporting since Q to reflect the company s evolution around its 3 main activities Breakdown of Parrot's revenues in Q Breakdown of Parrot's revenues in % <1% Automotive 13% <1% Automotive 16% Drones 18% Drones 73% Connected object & toys Other 69% Connected object & toys Other

4 FC6000 FC6050 Ironbox Swinglet ebee

5 Revenues % Gross operating margin % % of revenues 51.7% 49.8% Research and development costs % % of revenues 21.8% 24.2% Sales and marketing costs % % of revenues 17.3% 18.4% General and administrative costs % % of revenues 6.3% 7.2% Production and quality costs % % of revenues 5.2% 7.5% Income from ordinary operations % % of revenues 1.1% -7.4% EBIT % % of revenues 1.1% -6.9% Financial income / expense % Share in income from equity affiliates - - Corporate income tax Minority interest Net income (Group share) % % of revenues 1.2% -7.6% Revenues: in line with anticipation GM: consistent with the product mix R&D moderation while recruitment started in March R&D invoiced to customers represents 1.7m. All the R&D for Consumer Electronics and Drones is expensed. Moderation of marketing spending (no product launched in Q1) Cost control Building up Drone and Consumer Electronics Operating expenditure: -6% Limited impact for / $ on investments Minority interests (Drone participations): Q1 2013: - 134,000 Q1 2014: - 196,000

6 7,9-38% Plug & Play 42,3-17% 35,0 12% 7,6 6,8 0,8 2,3 4,3 0,0 3,6 4,9 2,1 0,3 2,5 Connected object & toys Audio 27,9 23,1 14,4 11,9 Key Accounts automotive Retail automotive 6,0 5,3 Commercial and civil Retail drones Q Q Q Q Q Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Plug & Play End of life products sold in 2013, stopped in 2014 Audio Zik decrease in line with 18 month retail cycle Phasing out of Zikmu Connected objects and toys Flower Power in line with production Transition towards infotainment 12% of automotive revenues on infotainment Retail CK / MK: -25% Retail Infotainment: +22% Key Account CK / MK: -19% Key Account Infotainment: +15% Professional drones Revenues: 2.3 million +188% Retail drones -12% after 2nd full year of sales New Bebop drone launched in Q4 2014

7 Revenues EBIT EBIT in % of revenues -49% 2.0% -18% NS -2.3% Difficulty predicting the success of new products Marketing investment Transition dependent on auto industry cycles R&D Investment, presales engineers and customization Management of growth Emergence of new uses (functions, speeds) Start-up phase Innovation Image Growth 4 years of investment Advanced technologies Potential for growth (8 contracts) Visibility Technological combination Advanced technology Expand the range Consolidate the customer portfolio Finalize developments Target requests for proposals Take up a position on target sectors Achieve growth Identify the buoyant market Achieve growth

8 P7 / Octopus 2 and 3 9,1 Q1 10,0 9,2 Q2 Q3 Asteroid P7 / Octopus infotainment prospecting 11,1 Q4 12,5 Q ,2 11,5 Q Q ,4 Q ,6 Q P&I G&A S&M R&D Sales : +1% Marketing : -26% 2013 Q ,0 4,0 4,3 7,3 2,6 3,0 2,6 4,0 1,9 Asia 14% USA 3% Asia 3% USA 13% 8,5 6,0 7,0 6,4 7,3 8,3 5,6 6,5 7,4 Q1 Q2 Q3 Q4 Q1 2013Q2 2013Q3 2013Q4 2013Q Europe 83% Europe 84%

9 37,5 49,8 48,6 43,7 41,4 30,6 29,0 120 Debts Cash 23,1 Working capital Inventories 24,2 21, Q1 Q2 Q3 Q4 Q Q Q Q Q ,8 1,1-3,9-2,3-15,0-7,7-1,4 Cash from operations Share buyback Q Q Cash from operational investments Cash from financial investments 100,6 93,7 22,7 20,9 Q Q1 2014

10 Goodwill 38,7 Goodwill 39,6 Fixed assets Inventories 41,0 24,2 183,5 Shareholders' equity Fixed assets Inventories 46,3 21,3 180,6 Shareholders' equity Trade receivables and related 70,5 Trade receivables and related 64,1 Cash and current financial assets Equity interests Other 98,1 2,4 3,8 11,7 19,4 32,7 31,8-0,6 Provisions Financial debt Trade payables Other liabilities Minority interests Cash and current financial assets Equity interests Other 98,8 1,8 0 11,1 22,8 25,7 30,0 1,7 Provisions Financial debt Trade payables Other liabilities Minority interests

11 35 30 Volume Cours de l'action Treasury stock 4.9% Covéa Finance 7.2% Other (public) 52.1% Horizon (owned by Henri Seydoux) 35.8% PARRO - FR Capitalization: 254 M (share price: 20.07) Total number of shares: 12,648,849 Analysts: Genesta, ID Midcap, Invest Securities, Natixis

12 Vehicle for growth and innovation Breakdown of Parrot's revenues in Q % <1% Automotive Change in Retail Electronics revenues ( M) 7,9-38% 16% Drones 4,3 4,9 Plug & Play 73% Connected object & toys Other 0,0 3,6 2,0 0,3 2,5 Connected object & toys Audio Q Q1 2014

13 Public price: 60 to ,000 units sold in 2013 (+9%) Public price: 800 to 1,200 3,200 units sold in 2013 (-37%) Public price: ,000 units sold in 2013 (+62%) Launched in July Public price: 49 50,000 units sold in 2013 (launched in November 2013) Public price: TBD (high-tech toys sector) Launch in H2 2014

14 Parrot technologies New technologies 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 Agricultural sensors Identify new uses 3 to 5 projects under development Flexible timeframes Key Account opportunities

15 Press relations: 15 agencies covering 19 countries 1.7 M budget for ,003 articles (+16% vs. ) Advertising equivalent: 65.1 M Paid advertising: 1.5 M budget for 2013 Type: displays, web Countries: USA, France

16 Launch date: H Prices: TBD (high-tech toys) Countries: First wave: China, France, Germany, Italy, Japan, Spain, UK, USA Second wave: rest of the world Distribution: Online, retail electronics, toys

17 Transition with strong potential for growth Breakdown of Parrot's revenues in Q % <1% Automotive Change in Automotive revenues ( M) -17% 42,3 35,0 16% Drones 27,9 23,1 Key Accounts automotive 73% Connected object & toys Other 14,4 11,9 Retail automotive Q Q1 2014

18 +7% -24% % % -31% % -27% Total Key Accounts Infotainment Retail Infotainment (Parrot Asteroid) Key Accounts Bluetooth & Digital Music Retail Bluetooth & Digital Music (Parrot CK / MKi) % 10% 12% 98% 90% 88%

19 Technologies ( proprietary) Expertise Content 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-based sales

20 Dual Core Cortex A9 MALI400 GPU 2 ISP + 6 Video Interfaces IP Parrot Audio 1 Gbps Ethernet + AVB Competitive 40nm TSMC CTTB Radio software Receiver International digital TV Digital and analogue radio Competitive 40nm TSMC Over 25 M of investments Specific automotive needs targeted Competitive ASP Automotive and telecoms expertise

21 5 3 Smart Antenna (2015) NIS Central control unit 1 Ironbox Electronic control unit 4 RTV Box (digital TV and radio) 2 6 Complete systems with Ethernet platforms (2016) RSE rear seat infotainment

22 Supplier s scale STM Continental NXP Bosch TI Harman nvidia Parrot is the only supplier to have the key infotainment elements in place: Processor (IP) Automotive library (IP) Delphi Freescale Mitsubishi TVIA Complete automotive platform Supplier of relevant apps Parrot Parrot is the only supplier to offer a complete infotainment range Linux/Qt + Android RSE, TVBOX, Head UNIT, Smart Antenna Garmin LG Tomtom Parrot, thanks to its scale, is highly agile for its development

23 contracts signed 6 contracts signed 8 contracts signed recurrent new ) Modernize with the only complete solution Volvo, 2) Limited series, super car, small volumes McLaren, 3) Complete the range, mid-level volumes 4) Supply the complete platform with large volumes Prospecting Partnership, Less than 30 automotive groups produce more than 500,000 vehicles / year Toyota, Volkswagen, Hyundai, Ford, Nissan, Honda, PSA, Suzuki, Renault, Chrysler, Daimler, FIAT, BMW, SAIC, Tata, Mazda, Dongfeng Motor, Mitsubishi, Changan, Geely, Fuji, BAIC, FAW, Great Wall, Mahindra, Isuzu, Chery, Avtovaz 7 manufacturers have already chosen Parrot 1 prospecting = 3 to 5 engineers deployed for 6 to 12 months ( 100,000 to 200,000 / prospecting) 1 design win = 10 to 30 engineers deployed for 12 to 18 months ( 1M to 3M / development)

24 Successful diversification with strong potential for growth Breakdown of Parrot's revenues in Q Change in Drone revenues ( M) 10% <1% Automotive 6,8 12% 7,6 16% Drones 0,8 2,3 73% Connected object & toys 6,0 5,3 Commercial and civil Retail drones Other Q Q1 2014

25 The benchmark flying video camera 670,000 units sold +190,000 registered users +40 million videos viewed +7,000 points of sale Expanded compatibility HD wide angle camera (14m MP) Light weight (400 gr.) 2 km range with Sky controller accessory Android Apple Windows Nvidia Shield console Epson Moverio display Thalmic Myo armband Zeiss Vision Cinemizer OLED glasses Number of Parrot AR.Drones sold ( 000 units)

26 2013 revenues: 6.3 M Q1 2014: 2.0 M 2013 sales: starting up 2013 sales: starting up 2013 sales: starting up 1,000 users Q1 2014: 0.3 M) Proprietary autopilot 500 to 700 grams 16 million pixels 35 to 45 min. of flight time 36 to 57 kmph speed 45 kmph wind resistance 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 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 Simultaneous Localization and Mapping (SLAM) LIDAR (Laser) and Vision mapping Night vision Autonomous movement Detection from 20 to 80 m Secure 5.8 GHz transmission Smart energy management, independent induction-based recharging Proprietary software 3D mapping and modeling Orthomosaic, digital altimetric models, scatter plots Ease-of-use Production cost / sales price Regulatory constraints

27 Electricity network, gas pipelines, bridges, dams, sites, warehouses, etc. Mines, quarries, real estate projects, etc. Fields, forests, crops, etc. Estimated global market of $15 billion in million km of roads worldwide 1 million civil engineering structures in America $5 billion market in ,000 open-cast quarries worldwide 500,000 farms of over 10 km² worldwide Annual numbers of Drones used for agriculture in the US Source: AUVSI (Association for Unmanned Vehicle System International), March 2013 study: The economic impact of unmanned aircraft systems integration in the United States

28 Encourage technological synergies Margins Look into the transfer to the fabless model Market Parrot a major player for retail and commercial drones Synergies Develop the distribution network Growth Launch new retail drones

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30 2014 First half of the year Audio: Zik year 3, Zikmu: gradually phased out Plug & Play: in line Connected toys and games: minor contribution Finalization of Jumping Sumo and Mini Drone Second half of the year Launch of Jumping Sumo and Mini Drone Finalization of new products (2015 CES) Innovative products to be finalized Retail: Focus on OES opportunities Continued reduction for previous generation Bluetooth systems Slow penetration for infotainment Key Accounts: Focus on infotainment Less marked contraction for previous generation solutions Finalization of developments for the 2 new contracts Prospecting & requests for proposals Good visibility for the order book Retail: Sales starting up again for retail drones Professional: Deployment of commercial and technological synergies Launch of new products and solutions Strong capacity for acceleration Investments stepped up during the first half of the year to meet the annual growth target

31 2015 Parrot is harnessing an expanded product portfolio to devise and test new uses Infotainment is moving into a strong growth phase with the combined impact of 8 contracts in production The drone market s hyper-growth is continuing, driven by the simplification of the regulatory framework Acceleration in growth Improvement in profitability