Datalogic S.p.a. · MIL:DAL
Datalogic — Star Conference London 2016
32 slides from Datalogic's conference presentation, Oct 7, 2016
Slide 1: Star Conference London
Star Conference London 7th October, 2016
Slide 2: Disclaimer
Disclaimer This document has been prepared by Datalogic S.p.A. (the "Company") for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company nor any of it
Slide 3: Agenda
Agenda Group Overview Market Outlook Business and Strategy Financial Highlights 3
Slide 4: Group Overview
Group Overview DATALOGIC
Slide 5: Datalogic at a glance
Datalogic at a glance Global leader of barcode readers, mobile computers, sensors, vision systems and laser marking systems with innovative solutions in 1972 2001 verticals market: Retail, Transportation & Foundation IPO Logistics, Factory Automation, Healthcare Industries 2,600 EMPLOYEES 27% Fo
Slide 6: Datalogic Business Overview
Datalogic Business Overview Factory Retail Automation 48% Revenues 29% Revenues Healthcare T&L 5% Revenues 15% Revenues Figures based on 2015 Revenues; the remaining 3% is represented by other revenues 6
Slide 7: Over 40 years of Technological Innovation
Over 40 years of Technological Innovation 1972 FOUNDATION Established in Bologna 1988 Escort Memory Systems Inc. EXPANSION 1997 IDWare Mobile Computing & Comm. 2001 LISTING Listed on the STAR segment of Italian Stock Exchange Minec AB Laservall SpA Informatics Inc. PSC Inc. 2002 EXPANSION 2011 Datas
Slide 8: A Wide Geographical Footprint
A Wide Geographical Footprint EUROPE 41.9% ITALY 9.4% APAC 12.3% NORTH AMERICA 30.0% ROW 6.4% Direct presence in 30 countries 6 Manufacturing Sites 10 R&D Centers 3 DL LABS Note: Breakdown by area based on 1H2016 revenues 8 8
Slide 9: Investing in Datalogic
Investing in Datalogic Unique player world wide with leadership in two markets: ADC and IA 1 STRONG High entry barriers granted by solid Intellectual Property POSITION Patents portfolio Cutting edge technology and excellent customer support History of profitable growth PROVEN TRACK 2 RECORD
Slide 10: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (September 29th, 2016): 18.96 Euro Bloomberg Code: DAL IM Market Cap (September 29th, 2016): 1,108.1 M Euro Outstanding Shares: 58,446,491 Specialist: Intermonte SIM Share Par-Value: 0.52 Euro each Auditing Company:
Slide 11: Market Outlook
Market Outlook DATALOGIC
Slide 12: Market Outlook – ADC & IA
Market Outlook – ADC & IA ADC IA (B$) (B$) CAGR + 5.0% CAGR + 5.9% 4.7 5.7 10% 7% 3.9 4.9 12% CAGR + 4.7% 10% CAGR +4.2% 7% 20% 11% CAGR + 7.4% 20% CAGR + 4.3% 25% 24% CAGR + 8.0% 48% 53% CAGR + 1.8% CAGR + 5.0% 53% 55% CAGR + 13.3% 25% 20% 2015 2018e 2015 2018e Self Checkout Mobile Computers Sensor
Slide 13: Leadership Overview
Leadership Overview Global ADC Market value: 3.9B USD Global IA Market value: 3.9B USD Other Zebra Other 30.1% 35.7% 49.8% SICK 14.8% Omron 11.3% Datalogic Honeywell Datalogic 10.9% 23.3% 4.2% Cognex Keyence 9.4% 10.5% Source VDC 2016 (base year 2015) Source: VDC 2016 (base year 2015) for Industrial
Slide 14: Leadership Overview
Leadership Overview Worldwide Market 1 ADC MARKET: 10.9% from 10.4% in 2014 • POS Retail Scanners - 35.6% 3 • Handheld Scanners - 19.4% • Mobile Computers – 4.3% 1 IA MARKET: stable at 4.2% • Industrial Stationary Scanners 23.5% EMEA Market ADC MARKET: 1 • POS Retails Scanners – 55.6% • Handheld Sca
Slide 15: Market split by Technology
Market split by Technology Datalogic can offer all the technologies available for products identification Data Capture Technology 6.0% 17% 30% RFID Laser Scanner Optical Linear Imager 2D Imager 53% 94.0% * includes only Hand Held Scanners, Industrial Market Value : $4.0 Bn Stationary Scanners and Po
Slide 16: Business and Strategy
Business and Strategy DATALOGIC
Slide 17: Datalogic Strategy
Datalogic Strategy TO GROW AT A FASTER PACE THAN THE MARKET, GETTING MARKET SHARES NEW EMPHASIS ON SOLUTIONS TO SATISFY THE NEEDS OF END USERS IN: RETAIL, T&L, FACTORY AUTOMATION, HEALTHCARE FROM A PRODUCT DRIVEN COMPANY TO A CUSTOMER DRIVEN ONE • Maintain the positive trend in Europe and double dig
Slide 18: A Unique Selling Proposition…
A Unique Selling Proposition… Transportation Factory Retail Healthcare & Logistics Automation Americas Emea Apac 18
Slide 19: …with a Wide and Complementary Offer
…with a Wide and Complementary Offer INDUSTRIAL AUTOMATION AUTOMATIC DATA CAPTURE Retail T&L Factory Automation Healthcare 19
Slide 20: Datalogic’s unique positioning
Datalogic’s unique positioning Retail Flows and Applications T&L Flows and Applications Factory Automation Flows and Applications Healthcare Flows and Applications 20
Slide 21: Investment in R&D: driver of growth
Investment in R&D: driver of growth A large and growing portfolio of about 1,200 patents and pending patent applications About 300 pending patent applications in all jurisdictions 27.4% of revenues comes from new Portal Scanning products* in Q2 2016 12 Research & Development Centers Around
Slide 22: Financial Highlights
Financial Highlights DATALOGIC
Slide 23: 1H 2016 Key Factors
1H 2016 Key Factors Improved customer penetration in US Retail and Europe Factory Automation FOCUS ON CLIENT 27.4% of revenues in Q2 2016 comes from new products* (26.4% in 2015) Reaffirmed leadership in Europe and strong growth in US MARKET Some impact from economic uncertainties in fast gr
Slide 24: Recent events: Spin off of BU Systems
Recent events: Spin off of BU Systems Spin Off of the Business Unit Systems in a newco - Solution Net Systems Inc., headquartered in Quakertown, Pennsylvania (USA) - in which the assets related to the Business Unit Systems will be contributed Solution Net Systems Inc., will be 100% owned by Data
Slide 25: Financial Highlights
Financial Highlights 1H2016 1H2015 ∆% FY2015 Revenues €281.8mln €257.5mln +9.5% €535.1mln Gross Operating Profit €131.0mln €121.4mln +7.9% €248.6mln Gross Operating margin 46.5% 47.2% 46.5% EBITDA €45.0mln €34.3mln +31.0% €73.7mln EBITDA margin 16.0% 13.3% 13.8% FCF €8.4mln €8.6mln €46.1mln Net Debt
Slide 26: 1H 2016 Profit and Loss
1H 2016 Profit and Loss € mln 1H2016 1H2015 Var % FY2015 Revenues 281.8 100.0% 257.5 100.0% 9.5% 535.1 100.0% COGS (150.8) (53.5%) (136.0) (52.8%) 10.9% (286.5) (53.5%) Gross Operating Profit 131.0 46.5% 121.4 47.2% 7.9% 248,6 46.5% Other Revenues 2.0 0.7% 1.2 0.5% 68.6% 3.5 0.7% R&D (24.3) (8.6%) (
Slide 27: Revenues Trend by Country and Division
Revenues Trend by Country and Division REVENUES BY GEOGRAPHIC AREA REVENUES BY DIVISION €mln 1H 2016 1H 2015 Var % €mln 1H 2016 1H 2015 Var % 144.5 133.1 8.6% ADC 194.8 177.4 9.8% Europe IA 75.7 66.6 13.7% North America 84.5 73.6 14.8% - IA ex BU Systems 65.8 60.4 8.9% Asia Pacific 34.7 33.9 2.4% In
Slide 28: 1H2016 Segment Reporting
1H2016 Segment Reporting Gross Operating Margin 1H2016 1H2015 EBITDA* Margin 1H2016 1H2015 ADC 47.4% 48.6% ADC 24.9% 23.1% Industrial Automation 43.9% 44.5% Industrial Automation 5.1% 2.0% - IA ex BU Systems 48.7% 50.1% - IA ex BU Systems 7.2% 7.4% Informatics 45.7% 44.8% Informatics (2.3%) 0.8% Tot
Slide 29: EBITDA*: Actual vs Last Year
EBITDA*: Actual vs Last Year Vol. sales/Mix 24.1 Negative Items Service sales 0.5 Positive Items € mln 24.6 1.4 0.9 45.0 (0.03) (0.3) (3.0) 34.3 - GOM System : 1.8 Informatics : (0.4) EBITDA EBITDA 13.3% 15.9% Of which (13.0) Materials (0.7) Price Erosion: 3.9% on Tot Rev Labour 0.2 One shot marketi
Slide 30: Consolidated Balance Sheet at 30.06.2016
Consolidated Balance Sheet at 30.06.2016 TOTAL ASSETS EQUITY AND NFP € mln Other Assets 34.2 Trade Working 56.1 115.0 Other Liability Capital Net Financial 27.5 Position Total Fixed Equity Assets 356.5 304.3 30
Slide 31: Net Debt Analysis: Dec. ‘15 – June ‘16
Net Debt Analysis: Dec. ‘15 – June ‘16 € mln Acc. Receivable (7.0) LT MIP cash out (4.7) Inventory (19.1) Reserves changes (0.2) Negative Cash flow Acc. Payable 6.6 Other investments 0.6 Positive Cash Flow (4.3) (27.5) 44.7 (14.5) (0.4) (21.0) 1.6% on revenues (7.8) (4.6) Net Debt Operating Taxes Di
Slide 32: Contact
Contact IR CONTACTS NEXT EVENTS IR Manager November 11th, 2016 Vincenza Colucci 9M results CDR Communication Srl Tel. +39 335 6909547 E-mail vincenza.colucci@cdr- communication.it E-mail ir@datalogic.com IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@d