Extraordinary general shareholders’ meeting of 24 April 2020

Delta Drone secures the means to implement its development plan

Extraordinary general shareholders’ meeting of 24 April 2020:
Delta Drone secures the means to implement
its development plan

Dardilly, 27 April 2020

The extraordinary general shareholders’ meeting took place in a closed session in accordance with the measures in place due to the current health crisis. Via powers granted to the Chairman and mail-in ballots, approximately forty shareholders voted, representing a total of 26.9% of the capital. As a quorum was met, the Shareholders’ Meeting could validly deliberate. All the resolutions submitted were approved by a majority exceeding 99% (except resolution no. 11 concerning employee shareholding).

Despite the particular logistical conditions, the shareholders’ general meeting made possible a more comprehensive understanding of the Delta Drone Group’s current situation and future prospects.

Impact of the health crisis & current situation

Regarding the Group’s activity, consolidated revenue for the first quarter of the 2020 financial year was of €3.7M, down 27% compared with the comparable figure from the previous financial year. This change is obviously a direct consequence of the current health crisis and, more specifically, the shelter-in-place orders in effect in most countries. The drop in activity generally concerned the performance of assignments in general as most have been postponed until the lifting of shelter-in-place orders, especially security services for sports or cultural events. Also, it is impossible to produce and therefore deliver solutions sold.

As regards the latter point, there will be a delay (probably of a few months), although the first sales of the new ISS SPOTTER (security) and COUNTBOT (warehouse inventory) solutions are very promising. Indeed, three ISS SPOTTER systems have been sold (two of which outside France) and five deliveries of the COUNTBOT solutions are scheduled in the short-term.

Despite the various limitations attributable to the current crisis, R&D and sales development activities have intensified, as reflected in our recent announcements of the partnership agreement with PARAZERO for CityZone in Tel-Aviv (drone urban transport project) and, of course, the commercial launch of the CountBot solution in close partnership with the GEODIS group (warehouse inventory).

As for our internal organization, all preventative measures have been taken:

• In France, most employees have been able to work from home and a few were put on leave for childcare purposes. Only four employees were placed on temporary partial unemployment.
• In Morocco, the nine employees of the DELTA DRONE AFRICA subsidiary (formerly Delta Drone Maroc) were placed on partial unemployment, in compliance with the recommendations of the local authorities.
• In South Africa and Ghana, most of the pilots sheltered in place at the mining sites so they have continued to perform services as planned. Only a few sites have been closed temporarily.