DRONE VOLT : Turnover up by 26% at the end of September 2022

DRONE VOLT

Turnover up by 26% at the end of September 2022

and double-digit annual growth forecast

Villepinte, le 19 octobre 2022

• New turnover record at the end of September 2022 thanks to the diversification of the client portfolio;
• Favourable commercial outlook for the end of the year, enabling double-digit annual growth to be anticipated;
• Confidence for 2023 particularly with the commercial launch of the LINEDRONE1 and the development of the "Drone as a Service" offer.

DRONE VOLT, expert in embedded artificial intelligence and manufacturer of professional civil drones, presents its turnover at the end of September 2022.

Unaudited data in Euro - IFRS standards	9 months	9 months	Variation
2021	20221
Turnover
DRONE VOLT FACTORY, SERVICES & ACADEMY	2 850	1 477	-48%
Third-Party brands	3 484	6 495	+86%
TOTAL	6 334	7 972	26%
Gross Margin
DRONE VOLT FACTORY, SERVICES & ACADEMY	1 629	943	-42%
Third-Party brands	579	985	+70%
TOTAL	2 208	1 928	-13%
Gross margin rate
DRONE VOLT FACTORY, SERVICES & ACADEMY	57%	64%	+7 points
Third-Party brands	17%	15%	-2 points
TOTAL	35%	24%	- 11 points

"The growth in turnover to the end of September 2022 is a further success of the company's commercial strategy. We have been able to diversify our offer and expand our customer portfolio to meet the expectations of professionals. We are deploying more professional drones around the world every day and are continuing our market penetration to capture new customers who will gradually switch to our higher value-added offerings. Everything leads us to believe that the trend will remain positive until the end of the year and 2023 promises to be a year of consecration in the energy sector thanks to innovations in terms of products and services," says Marc Courcelle, Drone Volt's CEO.

• Figures including the contribution of the Dutch company SKYTOOLS since 18 January 2022.

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Turnover up by +26%.

Thanks to a 47% increase in turnover in the third quarter of 2022, cumulative turnover at the end of September 2022 reached a record level of nearly €8.0 million, an increase of +26% over 1 year.

This performance is all the more remarkable since, as announced at the time of the publication of the half-year results, DRONE VOLT has suspended the invoicing of production licences to its American partner and concentrated the agreement on the distribution of the HERCULES 20 in the United States. This strategic decision has cost 5 points of revenue growth over the first 9 months of the year 2022. In this context, DRONE VOLT is studying the opportunity to depreciate part of the fixed assets held in its accounts relating to this partnership (no significant current assets to date). This accounting operation would have no impact on the Group's cash flow, which would still be well above €20 million.

DRONE VOLT has thus largely compensated for the impact of this partnership on the activities of DRONE VOLT FACTORY, SERVICES & ACADEMY (down 48%) by accelerating the distribution of third-party brands (+86%). This strategy demonstrates DRONE VOLT's ability to expand its customer base in Europe, notably through the successful integration of the Dutch company SKYTOOLS, which has contributed 600 kuros since the beginning of 2022.

This commercial conquest allows us to address new customers who, in the future, will be natural candidates for the Group's value-added product and service offerings.

DRONE VOLT FACTORY, SERVICES & ACADEMY gross margin up 7 points

This offers encouraging prospects as the gross margin of high value-added activities increased by 7 points between the end of September 2021 and the end of September 2022 to reach 64% of turnover. DRONE VOLT is benefiting from the ramp-up of its research and training activities, thanks to the end of travel restrictions, and good control of component supply.

In the short term, the consolidated gross margin fell by 11 points to 24% of sales, due to the greater share of third-party brand distribution activities. The new orientation of the partnership agreement in the United States cost 3 gross margin points in the first nine months of the year.

Positive business outlook for 2022 and 2023

Given the good momentum observed at the end of September and the commercial contacts underway, DRONE VOLT anticipates a favourable end of the year and double-digit growth in its annual turnover (8.6 million euros in 2021). This trend is notably fuelled by the very good feedback from the latest trade shows where DRONE VOLT has exhibited its solutions, such as the CIGRE in August 2022 and the National Congress of French Fire Fighters in September 2022 at which DRONE VOLT presented its intervention assistance solutions (including the HERCULES 20 range recognised for its carrying capacity, thermal cameras with artificial intelligence, etc.).

In addition, DRONE VOLT is already preparing for the 2023 financial year, which will see the commercial launch of the LINEDRONE developed in collaboration with HYDRO-QUEBEC. To recall, this drone, a one of its kind, is designed for the complex inspection of high-voltage electricity transmission lines. It allows the detection of energy losses in an electrical network in order to accurately determine maintenance needs. The latest validation tests under real conditions on active high-voltage lines were successful.

DRONE VOLT intends to use its unique products to deploy its "Drone as a Service" offer by charging for use rather than ownership of its products. This strategy will facilitate commercial deployment by replacing the significant investment for the customer with a fee that is largely covered by the resulting benefits. It is also an important extra-financial commitment for DRONE VOLT, by limiting the number of drones produced through shared use by several customers.

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Next press release : Turnover for the financial year 2022, Wednesday 18 January 2023

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About DRONE VOLT

Founded in 2011, DRONE VOLT is an aeronautical manufacturer specialized in professional civil drones and artificial intelligence. DRONE VOLT has operations in France, Benelux, Canada, Denmark, the United States, Switzerland and Indonesia. As a global partner, DRONE VOLT offers its customers "turnkey" business solutions including various services and drone pilot training.

The DRONE VOLT Group, a member of GICAT, had a turnover of 8.6 million euros in 2021.

DRONE VOLT supplies administrations and industrialists such as the French Army, the Ministry of the Armed Forces, Engie, Total, Bouygues ES, ADP, the Gendarmerie des Transports Aériens (GTA), international governmental agencies...

DRONE VOLT is qualified as an "Innovative Company" by Bpifrance.

DRONE VOLT is listed on the Euronext Growth market in Paris:

Share: Mnemo: ALDRV.PA - ISIN Code: FR0013088606 - Eligible: PEA, PEA-PME

Warrant: Mnemo: BNBS.PA - ISIN Code: FR0014007951

More information on www.dronevolt.com

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GENERAL PUBLIC and TRADE MEDIA relations Céline Vergely - T : [phone]

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