1 174-178, Quai De Jemmapes
Total Page:16
File Type:pdf, Size:1020Kb
174-178, quai de Jemmapes - 75010 Paris - France Paris trade and company register: 394 149 496 www.parrot.com This document is a free translation of the French language reference document that was filed with the French securities regulator (Autorité des marchés financiers, AMF) on May 10, 2016 under number D.16-0472, in accordance with Article 212-13 of the AMF's general regulations. This English version has not been approved by the AMF. This translation has been prepared solely for the information and convenience of English speaking readers. No assurances are given as to the accuracy or completeness of this translation, and Parrot assumes no responsibility with respect to this translation or any misstatement or omission that may be contained therein. In the event of any ambiguity or discrepancy between this translation and the French reference document, the French reference document shall prevail. The French document is available on the AMF site (www.amf-france.org) and the Parrot site (www.parrot.com). The English document is only available on the Parrot site. A copy of this document may also be obtained free of charge by calling +33 1 48 03 60 60 or sending a letter to Parrot, Investor Relations, 174 quai de Jemmapes, 75010 Paris, France. 1 NOTE TO READERS ..............................................................................................................................................................................8 HISTORICAL FINANCIAL INFORMATION ............................................................................................................................................8 I. RESPONSIBILITY FOR THIS DOCUMENT ...................................................................................................................................9 1.1. Person responsible for the reference document ....................................................................................................................9 1.2. Statement by the person responsible for the reference document ......................................................................................9 II. STATUTORY AUDITORS ............................................................................................................................................................10 2.1. Incumbent statutory auditors .................................................................................................................................................10 2.2. Deputy statutory auditors .......................................................................................................................................................10 2.3. Statutory auditors’ fees ...........................................................................................................................................................10 III. SELECTED FINANCIAL INFORMATION ..................................................................................................................................11 3.1. Historical financial information ..............................................................................................................................................11 3.1.1. Condensed income statement ................................................................................................................................................11 3.1.2. Quarterly revenues .................................................................................................................................................................11 3.1.3. Revenues and EBIT for each business ..................................................................................................................................11 3.1.4. Condensed balance sheet ......................................................................................................................................................12 3.1.5. Condensed cash flow statement ............................................................................................................................................12 IV. RISK FACTORS .........................................................................................................................................................................13 4.1. Specific risks for the Group and its organization .................................................................................................................13 4.1.1. The Group relies on resellers for the sale of its retail products. The problems affecting these resellers and the changes relating to their purchases or to the associated decisions may have a material impact on the Group's business as well as on its operating results. ..........................................................................................................................................................13 4.1.2. The Group could experience difficulties managing the risks linked to the international deployment of its activities and its growth on new international markets .....................................................................................................................................13 4.1.3. The Group may encounter difficulties in achieving the repositioning of its Automotive business ..........................................13 4.1.4. The Group may encounter difficulties in integrating the acquired companies and in implementing its external growth strategy in the Commercial Drones market ............................................................................................................................13 4.1.5. The Group's results are seasonal and strongly depend on the sales recorded during the fourth quarter. .............................14 4.1.6. The Group depends on subcontractors for the manufacturing and assembly of its products ................................................14 4.1.7. The Group's success depends to a great extent on the development of Parrot's brand awareness .....................................14 4.1.8. The Group is dependent on certain key executives, engineers and sales managers whose departure could adversely affect its development ......................................................................................................................................................................15 4.1.9. The Company's main shareholder has the power to influence the Company's corporate decisions .....................................15 4.1.10. Future sales of Company shares could have an impact on the Company's stock price ........................................................15 4.1.11. The Company does not intend to pay out dividends to its shareholders in the near future ...................................................15 4.1.12. The company issues dilutive instruments which could have an impact on its capital ............................................................15 4.1.13. The Group's earnings are subject to fluctuations which make them difficult to forecast ........................................................15 4.2. Risks relating to the Group's business sectors ...................................................................................................................16 4.2.1. The Group is dependent on the context of the markets in which it operates, economic conditions and the pace of adoption of new technologies by the different audiences the Group is targeting ..................................................................................16 4.2.2. There is no guaranteeing that the Consumer Drones or the Commercial Drones business will develop as expected, or that the Group will take these new market opportunities ..............................................................................................................16 4.2.3. The Group cannot anticipate the development or the positioning of its current or future competitors, and may be unable to compete with them .................................................................................................................................................................17 4.2.4. The marketing of the Group's products may be impacted if wireless communications operators do not provide the required wireless services ....................................................................................................................................................................17 4.2.5. The Group's business depends on the electronic components market ..................................................................................18 4.2.6. The Group's products are based on specific technical standards and all types of connectivity, requiring choices to be made in terms of strategic technological platforms ..........................................................................................................................18 4.2.7. The Group may face risks relating to adverse legislative and regulatory developments regarding the civil drones sector ...18 4.2.8. The Group may face commercial returns in the Consumer Drone sector that are hard to predict .........................................19 2 4.2.9. Any significant disruption of its information systems may affect the Group ...........................................................................19 4.2.10. The Group is dependent on the market environment for automotive and electronic products ...............................................19 4.2.11. The Group may not be in a position to cope with growth