Parrot

Earnings Release • Sep 23, 2016

Growth targets revised

The acceleration of the reduction in prices over the last few weeks for the mid-end segment of the consumer drone market has impacted Parrot's sales.

The Group has taken this on board and is focusing on effectively managed promotional operations targeting each segment and region, while continuing to adapt its range of products and also its sales and marketing department. With over 200 million euros of net cash, its innovative range of consumer drones, its outstanding products and solutions in the commercial drone sector, Parrot is moving forward with the strategy presented at the time of the capital increase at the end of 2015 aiming to build a significant and profitable market share on the strongly growing civil drone market.

Under these conditions, the Group now expects to record global revenues around 55 million euros for the third quarter of 2016. However, the strong seasonality expected for fourth-quarter sales will not make it possible for the Group to deliver global growth for the full year.

Henri Seydoux, Parrot's Chairman, CEO and Founder, adds: "We are only at the start of the civil drone industry. We are working to build up a unique portfolio of activities in the professional sector, while adapting our consumer offering in line with this market's rapid developments. As the main shareholder and primary contributor to the capital increase in December 2015, I am aiming above all to preserve our development model and roll out a profitable strategy. I am confident in our ability to successfully meet the challenges involved with this new industry".

Next financial dates

• October 5 and 6, 2016: European Large & Midcap Event (Paris, France)
• November 14, 2016: Publication of 2016 third-quarter earnings

Next financial dates

• October 5 and 6, 2016: European Large & Midcap Event (Paris, France)
• November 14, 2016: 2016 third-quarter earnings

ABOUT PARROT

Founded in 1994 by Henri Seydoux, Parrot creates, develops and markets advanced technology wireless products for consumers and professionals. The company builds on a common technological expertise to innovate and develop in three primary markets:

• Civil drones: With leisure quadricopters and solutions for professional use.
• Automotive: With the most extensive range of hands-free communication and infotainment systems for vehicles on the market.
• Connected objects: With a focus in audio and gardening.

Headquartered in Paris, Parrot currently employs more than 1,000 people worldwide and generates the majority of its sales overseas. Parrot has been listed on Euronext Paris since 2006. (FR0004038263 – PARRO). For more information, please visit www.parrot.com

CONTACTS

Investors, analysts, financial media Marie Calleux - T.: +33(0) 1 48 03 60 60 parrot@calyptus.net

Tech and consumer media Vanessa Loury - T.: +33(0) 1 48 03 60 60 vanessa.loury@parrot.com