3 core business lines: Automotive, Drones, Connected Devices

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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 ~900 people, with +50% on R&D Octopus Parrot 3 core business lines: Automotive, Drones, Connected Devices 2

3 -17% Asteroid Mini 249 / $299 Asteroid Tablet 349 / $399 Asteroid Smart 549 / $ ,5 Retail automotive 54,6 44,5 Key Accounts automotive CK / $119 CK / $179 Mki 9000 / / $ Mki / $ Chipset & Modules Cellphone & Multimedia Connectivity Rear Seat Entertainment Smart Antenna Infotainment auto revenues: 11% Technological choices validated Slow industrialization phase Managing the time to market 3

4 +97% ,5 MiniDrone Jumping Sumo 159 / $159 MiniDrone Rolling Spider 99 / $ ,3 35,7 70,5 Retail drones Professional drones AR.Drone / $299 Bebop Drone / $ M, +97% : 12.5 M, +98% 15,0% Retail drones 85,0% Commercial drones Minority investments 4

5 % Zik 2.0 headphones 349 / $399 MiniKit Neo 2 HD 79 / $99 Flower Power 49 / $59 12,6 1,8 15, ,3 2,1 12,4 Audio Connected objects Plug & Play Zikmu ended in Q New Zik 2.0 headphones in Q New Minikit Neo 2 HD in Q Flower Power still confidential but interest linked to agricultural drones Plug & Play Parrot Zikmu Solo 799 / $799 52,0% 39,0% Connected devices Audio 9,0% 5

6 Since the fourth quarter of 2013, Parrot has adopted a new financial reporting system reflecting the Group's development around its 3 main business lines Breakdown of Parrot's revenues in Q Breakdown of Parrot's revenues for % 1% Automotive 9,9% 1% Automotive 41% Drones Drones 46% Connected objects 34% 55,4% Connected objects Other Other 6

7 Revenues Gross operating margin % of revenues 48.5% 53.1% 50% 52.7% 5.4 Research and development costs % of revenues -17.2% -15.8% -19.4% -20.6% 6.2 Sales and marketing costs % of revenues -17.4% -19.3% -17.0% -18.8% 10.6 General and administrative costs % of revenues -6.4% -5.6% -6.2% -6.9% 11.3 Production and quality costs % of revenues -5.7% -5.5% -5.1% -6.0% 17.6 Income from ordinary operations % of revenues 1.9% 6.9% 3.0% 0.5% EBIT % of revenues 1.5% 5.9% 3.0% 0.2% Financial income / expense Share in income from associates Corporate income tax Net income Net income (Group share) % of revenues -0.3% 3.7% 0.7% -1.1% Resumption of revenue growth Good gross margin level, made possible by the product mix (drone) R&D: recruitment plan launched in March Percentage charged back to customers: 1.8 M. All R&D for Drones and Connected Devices is recognized in expenses. Marketing costs in line with the launches Stronger control over costs Ramping up of Drone activities Operating expenditure : 32.8 M Low impact for foreign exchange ( /$) Minority interests: Drone investments 7

8 Revenues EBIT % of revenues 9% 8% 0% 0% -20% -30% -232% -105% Transition dependent on auto industry cycles R&D investment, presales engineers and customization Management of growth Meeting end customers' needs Supporting the implementation of legislation Difficulty predicting the success of new products Marketing investment Start-up phase 4 years of investment Advanced technologies Automotive history Visibility Positioning Technology Visibility Positioning Innovation Advanced technologies Finalize developments Target requests for proposals Expand the range Develop synergies Achieve growth Expand the range to break even financially Achieve growth Identify the buoyant market Achieve growth 8

9 P7 / Octopus 2 and 3 Asteroid P7 / Octopus 3 infotainment prospecting ,1 10,0 9,2 11,1 12,5 11,2 11,5 10,4 11,6 12,7 13,2 16, P&I G&A S&M 351 T T T T T T T T T Sales : +21% Marketing : +60% T T R&D ,0 8,5 4,0 6,0 4,3 7,3 7,0 6,4 2,6 7,3 3,0 8,3 2,6 5,6 7,7 4,0 1,9 3,2 4,2 6,5 7,4 6,8 6,8 6,6 Q3 T Q4 T Asia 12% United States 3% Asia 11% United States 4% Q Q Q Q Q Q Q Q Q Q Q Q Europe 79% Europe 80% 9

10 49,8 48, ,5 43,7 41,4 30,6 31,4 33,8 33,2 29,0 31, Debts Cash 89,7 23,1 24,2 21,3 18,5 21,7 80 Working capital Inventories 70 Q Q Q Q Q Q Q Q Q Q Q Q Flux opérationnels 23,6 25 Flux d'investissements 20 financiers 15 Rachat d'actions ,0-2,7-5,5-8,4 30/06/ /09/2014 0, ,6 12,5 Sept Dec

11 Goodwill 38,7 Goodwill 39,9 Fixed assets 41,0 Fixed assets 48,0 Inventories 24,2 183,5 Shareholders' equity Inventories 21,7 183,8 Shareholders' equity Trade and other receivables 70,5 Trade and other receivables 84,8 Cash and current financial assets Equity interests Other 98,1 2,4 3,8 Assets 11,7 Provisions 19,4 Financial debt 32,7 Trade payables 31,8 Other liabilities -0,6 Minority interests Liabilities Cash and current financial assets Equity interests Other 82,8 5 2,0 Assets 11,1 14,7 61,2 40,8-0,9 Liabilities Provisions Financial debt Trade payables Other liabilities Minority interests 11

12 35 Volume Share price Public 54,7% Parrot SA 4.5% Covéa Finance 5,0% Henri Seydoux 35,8% PARRO - FR Capitalization: ~ 270 M (share price: 21) Total number of shares: 12, Analysts: Genesta, ID Midcap, Invest Securities, Natixis 12

13 Automotive

14 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 sales 14

15 +7% -24% -17% Total 2,3 +239% 7,8-22% 1,9 +352% 6,1 8,6 +28% -2% 8, % % 84,4-26% 85,0-27% 62,7-22% 46,0 35, Grands Comptes Infotainment Grand Public Infotainment (Parrot Asteroid) Grands Comptes Bluetooth & Musique Grand Public Bluetooth & Musique (Parrot CK & MK) 90% 10% Infotainment Bluetooth traditional 89% 11% 15

16 Drones

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18 World-renowned leader Nearly 1 million drones sold Search trends for Parrot Drone from 2008 to 2014 (Google Trends) Unique positioning: Retail Drones / Commercial Drones R&D phase launched since 2006, consolidated with technological acquisitions since 2012 Technological expertise helping ensure a low regulatory impact Drone = flying software / proprietary patents (image stabilization for taking photos and controlling the drone) Light drone = little regulatory impact Toy drone = user s responsibility Business model in line with the Group's requirements Financial balances respected 2-stage expansion cycles: retail then commercial 18

19 Assessment of forest fire damage Precision farming 2013 revenues: 6.3M 2014 revenues: 11.1M +1,000 users 2014 revenues: 3.2M 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 3D mapping Mining operations Proprietary software 3D mapping and modeling Orthomosaic, digital altimetric models, scatter plots 19

20 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 3.8 cm Integrated wifi for remote control and viewing Image optimization 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 transmissions Smart energy management, independent induction-based recharging Ease-of-use Production cost / sales price Regulatory constraints 20

21 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 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

22 Connected Devices

23 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 Agric. sensors Identify new uses 3 to 5 projects under development Flexible timeframes Key Account opportunities 23

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25 Strong growth Investment in R&D, sales and production Contraction in line with 2014 Strategic review process Growth Improvement in profitability Accelerating growth Improving profitability 25