Dardilly -Faced since the beginning of the second half of 2022 with the difficulties affecting small caps on the financial markets, resulting for Delta Drone in a collapse in its market value and liquidity, the group has reacted by deciding on a radical action plan likely to profoundly modify its structure and organization, and consequently its original economic model.

Of the 4 branches that constituted the group until then:

The Delta Drone International branch was sold in early 2023.

Delta Drone Human Tech business could be sold in the short term.

The UDT business is the subject of a phased disposal program.

The Delta Drone SA branch has undergone a drastic reorganization.

Details of the action plan implemented are presented below, branch by branch.

The disposals (and divestment projects) are mainly intended to bring cash to the group, without calling into question the quality and history of the relationships established: even when they have left the group's capital scope, the entities sold will continue to be first-rate business partners, particularly in terms of commercial development.

In addition, as part of the action plan to reduce Delta Drone's operating costs, the Chairman and Chief Executive Officer, Christian Viguie, has decided to relinquish his duties as Chief Executive Officer at the next Annual General Meeting, and therefore the remuneration associated with it. On that date, he will cease to exercise any operational function within the company. This decision will require the implementation of new governance, in particular by identifying a new Chief Executive Officer.

The lightening of the only retained branch, Delta Drone SA, is intended to restore the agility necessary to thrive successfully in a market of civilian drones for professional use still largely in the state of construction and structuring.

New advantages that the new Delta Drone configuration will have:

A reduced workforce of 14 employees

Largely positive cash flow, gradually increased due to the program of disposals of assets from the UDT portfolio

A concentration of its commercial development on the security and logistics sectors, thanks to the ISS Spotter, SpotterBot and CountBot systems,

A close partnership with the Chinese group Sichuan AEE Technology, whose challenges are the industrialization and reliability of existing Delta Drone systems and the exclusive distribution of the AEE range of products and solutions in Europe and Africa. For the record, the Sichuan AEE Technology Group is one of the leading groups in the drone sector in China, long focused on its only domestic market before initiating an internationalization strategy two years ago

The 2022 financial statements have been prepared in line with the action plan initiated, particularly in terms of the value of intangible assets, the 100% of which has been systematically depreciated. At the same time, non-recurring costs related to reorganizations (layoffs in particular) and branch closures also had a heavy impact on the income statement.

These accounts should therefore be analysed with caution, as they mainly reflect the importance of the action plan implemented.

Summary of the consolidated financial statements for the financial year 2022

See full release at: https://www.deltadrone.com/wp-content/uploads/2023/04/2023-04-17_DeltaDrone_PR_FY2022_accounts_VD.pdf

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