Datalogic S.p.a. · MIL:DAL
Datalogic — STAR Conference Milan 2015
39 slides from Datalogic's conference presentation, Mar 24, 2015
Slide 1: Corporate Presentation – STAR Conference
Corporate Presentation STAR Conference Milan 24-25th March, 2015
Slide 2: Agenda
Agenda Group Overview Market Outlook Business & Strategy Financial Highlights 2
Slide 3: Group Overview
Group Overview DATALOGIC
Slide 4: 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 verticals market: Retail, Manufacturing, Transportation & Logistics, Healthcare Industries Founded in 1972 by Romano Volta in Bologna, Italy an
Slide 5: Investment Case
Investment Case Strong position Financials Valuation Unique player world wide History of profitable Attractive valuation in with leadership in two growth respect to peers (discount markets: ADC and IA on a 2015 P/E and Wise resources EV/EBITDA basis at 30% High entry barriers management to
Slide 6: Solid Growth in 2001-2014
Solid Growth in 2001-2014 Sales CAGR 2001-2014 +12% EBITDA CAGR 2001-2013 +12% 462 451 465 69 426 63 404 393 59 60 382 380 50 50 312 48 38 206 32 25 132 146 21 20 112 118 16 17 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201
Slide 7: A history of organic growth and acquisitions
A history of organic growth and acquisitions Acquisition of Acquisition of Accu-Sort Informatics Inc. Systems Inc. Acquisition of Acquisition of PSC Inc. PPT Vision Inc. Established in Bologna Listing on the Acquisition of Milan Stock Acquisition of Laservall SpA Exchange Evolution Robotics Acquisit
Slide 8: A wide geographical footprint
A wide geographical footprint EUROPE 43% NORTH AMERICA 29% ITALY 9% APAC 12% ROW 7% Direct presence in 30 countries worldwide 8 Manufacturing Sites 12 R&D Centers Note: Breakdown by area based on 2014 revenues 8
Slide 9: Relentless Innovation
Relentless Innovation PRODUCT INNOVATION 35 33 34 A large and growing portfolio of 32 32 over 1,150 patents and patent 27 25 25 23 applications 20 22 23 23 23 22 16 16 17 14 13 14 12 13 12 About 300 pending patent 9 12 9 8 11 10 8 10 7 applications in all jurisdictions 6 6 43 5 4 3 6 4 3 44 2 2
Slide 10: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (March 19th, 2015): 10.51 Euro Bloomberg Code: DAL IM Market Cap (March 19th , 2015): 614.3 M Euro Outstanding Shares: 58,446,491 Specialist: Intermonte SIM Share Par-Value: 0.52 Euro each Auditing Company: Reconta
Slide 11: Market Outlook
Market Outlook DATALOGIC
Slide 12: Market Outlook – Automatic Data Capture
Market Outlook – Automatic Data Capture Strong recovery ahead with forecast reviewed upward for the entire period: CAGR 2013-2016 +5.0% CAGR + 5.0% 5.22B$ 4.51B$ 53% Mobile Computers 56% CAGR + 3.1% Hand Held Scanners POS Retail Scanners 20% Self Checkout Solutions 21% CAGR + 3.3% 7% 7% CAGR + 5.0
Slide 13: Market Outlook – Industrial Automation
Market Outlook – Industrial Automation Positive market trend in all the segments Datalogic is operating in Laser marking technology and machine vision increase their applications in the factory environment 4.56B$ CAGR + 5.1 % 3.93B$ 48% 49% CAGR + 4.4% SENSOR & SAFETY LASERMARKING VISION 15% SYS
Slide 14: 2013 Market Share – ADC market
Datalogic positioning in the ADC market ADC Market Share around 10% POS Retail Scanners #1 WW – 32.8% mkt 2013 Market Share share Handheld Scanners #1 in EMEA – 32.8% mkt share #3 WW – 16.9% mkt share Mobile Computers #3 in EMEA – 7.3% mkt share #4 WW – 3.9% mkt share 2013 Revenues in $M 2013 ADC Av
Slide 15: 2013 Market Share – IA market
Datalogic positioning in the IA market 2013 Market Share 12% Industrial Stationary Scanners #1 WW - 26.2% mkt share 8% 6% 4% 2% $100 M $200 M $300 M $400 M 2013 Revenues in $M 2013 IA Available Market including Industrial Barcode Scanners, Imagers, Photoelectric Sensors, Safety Light Curtains, Smart
Slide 16: Market split by technology
Market split by technology Datalogic can offer all the technologies available for products identification Data Capture Technology Hand Held Scanners $B 6.6 4.2% 31% Laser Scanner 47% Linear Imager 2D Imager RFID 22% Optical Mobile Computers 5.2% Laser Scanner 95.8% 21.0% Linear Imager 2D Imager 2014
Slide 17: Business and Strategy
Business and Strategy DATALOGIC
Slide 18: A unique selling proposition
A unique selling proposition Americas Emea Apac 18
Slide 19: Datalogic by Verticals
Datalogic by Verticals Group revenues by verticals Other 4% Healthcare 5% T&L 13% Retail 49% Manufacturing 29% ADC IA Other 6% Healthcare T&L 6% 1% Retail 12% Healthcare 7% T&L 29% Manufacturing Retail 65% Manufacturing 16% 58% 19
Slide 20: Retail: leverage the POS market share
Retail: leverage the POS market share POS Store mngt Warehouse Most innovative solutions New products New Products Multi-tier model Tailored services Bundle solutions 20
Slide 21: Innovation drives Retail recovery
Innovation drives Retail recovery Retailers’ investment recovery ongoing Unique in the market: Innovative Digimarc® Barcode reading capability available on multiple models Growth driven by technological innovation: from laser to imaging (Magellan 9800 i) Jade, the 360° automated portal scann
Slide 22: Manufacturing: Leverage the product breadth
Manufacturing: Leverage the product breadth Warehouse Shop floor Automation Geographical expansion New Products Leverage EMEA MKT share leverage barcode, Bundle solutions as a reference marking and inspection 22
Slide 23: Manufacturing: Automation Increases
Manufacturing: Automation Increases Unprecedented level of automation endorsed by both traditional and emerging markets Geographical presence expansion in the fast growing markets Packaged solutions bundling laser marking and machine vision Launch of Matrix 300 in FA 23
Slide 24: T&L: Leverage leadership in sorting applications
T&L: Leverage leadership in sorting applications Data Collection Sorting Delivery Geographical coverage Strenghten the relation New products leverage barcode, with key customers tailored services marking and inspection Focus on Couriers, Postal, e-Commerce, Distribution Centers in North America an
Slide 25: Healthcare: Anticipate new regulatory
Healthcare: Anticipate new regulatory Manufacturing Inventory mngt Bed side care Tailored services Expand geography Most innovative solutions Promote the use of Mark and Verify solutions New Products professional device Anticipation of regulatory changes: E-pedigree in US European Medicines Ve
Slide 26: Outlook for 2015
Outlook for 2015 ADC confirms to be the driver of growth thanks to: the launch of new technologically advanced products the retailers’ new investment phase Expected recovery in Industrial Automation from second half of 2015 thanks to the sales force reorganisation by verticals in US Strong
Slide 27: Financial Highlights
Financial Highlights DATALOGIC
Slide 28: 2014 Key Factors
2014 Key Factors Anticipate clients’ needs offering new products to improve their efficiency and productivity FOCUS ON CLIENT Focus on innovation: 25 new products launched 21% of revenues comes form new products Opening of new branches in Turkey and Brazil Opening of new ADC plant in Brazi
Slide 29: Q4 2014 Highlights
Q4 2014 Highlights Sales revenues up +3.8% to 124.5 million Euro in 4Q2014 vs 120.0 million Euro in 4Q2013 Gross Operating Margin continues improving from 46.5% to 48.3% on revenues EBITDA up 4% to 17.4 million Euro thanks to cost control and notwithstanding R&D investments increase to 13.3 mi
Slide 30: 2014 Highlights
2014 Highlights Sales growth driven by ADC +9.2% and IA (ex System) +3,3%, BU Systems still suffering by the postal cycle Further improvement of the Gross Operating Margin, from 47.2% to 48.6%, and EBITDA Margin, from 13.3% to 14.9% as result of cost control and operating leverage R&D costs +
Slide 31: Revenues Trend by Division
Revenues Trend by Division ADC Division continues to outperform REVENUES BY DIVISION (%) mainly thanks to the introduction of new technologically-advanced products like POS 2D scanner and Presentation scanner 6% Significant trend reversal in 4Q in 28% Industrial Automation, driven by the launch
Slide 32: Revenues Trend by Geographic Area
Revenues Trend by Geographic Area REVENUES BY GEOGRAPHIC AREA Europe/Italy growth primarily driven by €000 2013 2014 Var % ADC two digits growth Italy 38.040 44.489 17,0% Europe 183.810 197.846 7,6% Two speed in North America: ADC driven by Retail while IA still suffering North America 143.876 1
Slide 33: FY Segment Reporting: GOP and EBITDA
FY Segment Reporting: GOP and EBITDA GOP BY DIVISION EBITDA BY DIVISION €mln €mln 225.6 69.4 212.6 66.1 60.0 157.2 50.4 138.7 60.6 56.7 8.0 13.1 11.8 5.8 -0.1 2.5 -0.9 -3.7 0.2 1.3 ADC IA Informatics DL SpA Total Group ADC IA Informatics DL SpA Total Group 2013 2014 2013 2014 Gross Operating Margin
Slide 34: FY Segment Reporting: R&D and TWC
FY Segment Reporting: R&D and TWC R&D BY DIVISION TWC BY DIVISION €mln €mln 40.5 43.1 38.9 35.6 30.2 23.2 21.3 17.9 20.5 20.3 12.9 14.7 13.4 7.5 2.3 3.3 0.9 0.8 -4.3 -4.1 ADC IA Informatics Business Dev Total Group ADC IA Informatics DL SpA Total Group 2013 2014 2013 2014 TWC/Annualized R&D/Revenues
Slide 35: EBITANR: Actual vs Last Year
EBITANR: Actual vs Last Year Other revenues + 264 (€/000) Other variable costs - 256 Vol. sales/Mix + 3,590 Direct Cogs + 10,228 Service sales + 423 -1.8% on Revenues Mainly R&D costs at 9.3% on revenues (*) Ordinary Operating Profit before non recurring costs/revenues and amortization of intangible
Slide 36: Consolidated Balance Sheet at 31.12.2014
Consolidated Balance Sheet at 31.12.2014 TOTAL ASSETS EQUITY AND NFP €mln Other Assets 31.4 Other liabilities Trade 40.4 101.1 Working Capital Net 55.7 Financial Position 326.2 Total Equity Fixed 241.3 Assets 36
Slide 37: Financial resources for the growth
Financial resources for the growth 23% net debt to Equity ratio SOLID 0.8x net debt to Ebitda ratio CAPITAL STRUCTURE Generated around 67 million Euro net operating EXCELLENT CASH FLOW cash flow from operation during 2014 GENERATION Medium-term debt refinancing on February 2015 FAVOURABLE fo
Slide 38: Contacts
Contacts IR CONTACTS NEXT EVENTS CFO and IR Manager March 24-25th , 2015 Sergio Borgheresi STAR Conference Milan E-mail investor@datalogic.com April 28th, 2015 IR Assistant Ordinary Shareholders’ Meeting Daniela Giglioli Tel. +39 051 3147109 May 7th , 2015 Fax +39 051 3147205 Approval 1Q results E-m
Slide 39: 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