This document provides an overview of ARCHOS Group, a producer of tablets, smartphones, and connected objects. It discusses ARCHOS' history of innovation, current market positions, financial performance, and strategy for 2016 and beyond. Key points include ARCHOS holding the #5 and #7 positions for tablets and smartphones in Europe, revenue growing 20% in 2015 to €158.7 million, and goals for 2016 including reaching €200 million in revenue and the #4 and #6 positions for tablets and smartphones in Western Europe.

2. 1
Facts & Figures

3. WHO WE ARE
Innovation Entertainment Affordable

4. WHO WE ARE
ARCHOS
Group
Logic
Instrument
PicoWAN
ARCHOS
SA
BtoC Products
- Tablets
- Smartphones
- Connected objects
BtoB Products
- Tablets
- Smartphones
IoT Network

5. WHO WE ARE
Innovation legacy to be continued…
2016
2000
1st Google
Android Tablet
1st HDD
MP3 player
2009
2003
1st Multimedia
Player
2014
1st Connected
Smart Home PicoWAN
IOT Network
1st Connected TV
ARCHOS TV Connect
2013
1st Smartphone
4G Full HD under 200€
ARCHOS 50 Diamond
1st Smartphone
4GB/64GB under 250€
ARCHOS Diamond 2 Plus

6. WHO WE ARE
15 Years of Innovation
 1st HDD MP3 player 2000
 1st Multimedia Media Player 2003
 1st Google Android Tablet 2009
 1st connected Smart Home 2014
 IOT Network 2015
Western Europe & WW presence
 N° 5 for Tablets (source GFK)
 N° 7 for Smartphones
 25 000 points of sale WW
 10 Million Active Users today
Android Expertise
 7 years of Android expertise
 Google certified (Mada)
 Personalized HW for BTB
 OEM for major retailers
China Expertise
 Long term Chinese partners
 Shenzhen full subsidiary since 2006
 80 experienced engineers
 Financed in China since 2015

7. WHERE WE ARE

8. COMPETITIVE LANDSCAPE
Tier 1
brands
Tier 2
brands
Tier 1
China
Tier 1 brands
Tier 1 brands
Tier 1 brands
• Two real A Brands
• Traditional brands sandwiched
• No longer bringing disruptive technology
• Giving up the Consumer Electronic field to regional Heroes
• Want to compete to T1 Brands
Regional
heroes
Tier 1 brands
• Regional heroes on the move!
• Fast & Focused
• Expected to take market share from the 2 A Brands

9. ARCHOS PLAYGROUND
TABLETS & PC SMARTPHONES CONNECTED OBJECTS
#5 for Tablets in Europe
#7 for Tablets World Wide
Growing market#7 in Smartphones
in Europe

10. Tablet Positioning
Win 10
WiFi
WiFi
4G
3G
ARCHOS 101 Neon Color
ARCHOS 70b Neon
ARCHOS PC stick
ARCHOS 80b Helium
ARCHOS 101b Xenon
ARCHOS 70 Xenon color
ARCHOS 101b Oxygen
ARCHOS 80 Oxygen
ARCHOS 101b Cesium
ARCHOS 101 Helium lite

11. Smartphone Positioning
3G
4G
ARCHOS 50c Platinum
ARCHOS Diamond 2 Note
ARCHOS Diamond 2 Plus
ARCHOS Diamond Plus
ARCHOS 50d Oxygen
ARCHOS 55 Cobalt Plus
ARCHOS 50 Cobalt
ARCHOS 40 Neon
5,5’’
5,5’’
Premium
Premium
5’’
5’’
4G
4G

12. Connected World
PicoWAN
ARCHOS Weather Station
ARCHOS VR Glasses
Lifestyle Home
ARCHOS Music Light
ARCHOS Music Beany
ARCHOS Smart Home

13. INTERNATIONAL PARTNERSHIP
4 years of partnership with the
French national football team

14. GLOBAL COMMUNITY
More than 1 Million followers on
social networks all over the world !

15. 2
2015
Performances

16. KEY FIGURES
2014 2015
Global
Revenue
160M€
3M units
Units
Shipped
2,3M units
132M€

17. 2015 Main Events
Succeeded International Development
Logic Instrument back to growth
Improved Gross Margin
ARCHOS Improved Branding
Egypt, Nigeria, South America
Hilton Hotel, Secure Smartphone
Quality Improvement & Optimized Service Chain
Diamond Range, FFF Partnership

18. P&L 2015
€M S1 2015 S2 2015 FY 2015 FY 2014 Var YoY Var% YoY
Revenue 69.1 89.6 158.7 132.1 26.6 20%
Gross Margin 9.1 17.0 26.1 22.9 3.1 14%
% of revenue 13,2% 18,9% 16,4% 17,4% 11,8%
OPEX 12.8 14.6 27.4 28.7 -1.3 -4%
% of revenue 18,5% 16,3% 17,3% 21,7% -4,7%
Current Operating Income -3.7 2.3 -1.3 -5.7 4.4 77%
0.1 -0.6 -0.5 -7.3 6.8
Others 0.1 -0.6 -0.5 -7.3 6.8
EBIT -3.6 1.7 -1.8 -13.0 11.2 86%
Financial results 0.2 -0.2 0.0 0.2 -0.2
EBT -3.4 1.6 -1.8 -12.8 11.0 86%
Taxes -0.1 -0.1 -0.2 -0.2 0.0
Net Result -3.5 1.5 -2.0 -13.0 11.0 n/s
EBITDA -2,6 3,4 0,8

19. 3
2016
And beyond…

20. Strategy
200 M€ in 2016 &
a Profitable Company
Reach #4 position
in Tablets in
Western Europe
Reach #6 position
in Sim Free
Smartphone
in Western Europe
Logic Instrument
a major player
in the BTB
Mobility Market
Impose ARCHOS
as a major actor in
the IOT with
PicoWAN
4 6

21. Key Figures
2014 2015 2016
Global
Revenue
160M€
200M€
132M€
+20%
+25%
3M units
4M units
+33%
Units
Shipped
2,3M units
+30%

22. Execution Plan
REVENUE
GROSS MARGIN
• Brand Awareness
• Increase average Selling Price
• Renew with Innovation DNA
• Open new countries: Poland, Turkey
• New BTB deals
• Supply Chain to optimize
• Leverage the recent Romania customer service center
• Monetize installed Base:
Push
Apps
Contextual
Ads
Loyalty
Program
Special
Deals

23. • 5.5’’ Full HD IPS Screen
• 4G Octo-core CPU
• 4GB RAM
• 64GB Memory
• 21MP Camera
• Finger Print
• Android 6
ARCHOS next flagship
« ARCHOS impressionne
avec ses smartphones »
« ARCHOS is back ! »
« ARCHOS a décidé de
frapper fort »
19-02-2016 / LesNumeriques
24-02-2016 / Numerama
26-02-2016 / BFM Business
249 €
Smartphones Positioning

24. Education
Autonomy >8h
Keyboard
10 inches
Protection
Price (<250€)
ARCHOS’s Strength
3M of pupils to be equipped between
2016 and 2018 in France
(Grand Plan Numérique)
Europe will follow

25. Professional Segment
B2B Strategy in 3 Items
SECURITY Thales / Sikur
Hilton / Telecare
EXTREME CONDITIONS
PERSONNALIZATION
IP68 – Shock Resistance – MIL STD

26. PicoWAN
PicoWAN Pico-gateway
Deep indoor
Easy set up Low cost
Cross Border

27. www.archos.com