Slide 1: STAR Conference London
STAR Conference London October 5th, 2015
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 & Strategy Financial Highlights 3
Slide 4: Group Overview
Group Overview SDATALOGIC
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 verticals market: Retail, Transportation & Logistics, Factory Automation, Healthcare Industries Founded in 1972 by Romano Volta in Bologna, Ita
Slide 6: Investing in Datalogic
Investing in Datalogic Unique player world wide with leadership in two markets: ADC and IA STRONG 1 POSITION High entry barriers granted by solid Intellectual Property Patents portfolio Better time to market and more efficiency than competitors History of profitable growth PROVEN TRACK 2 RECORD
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 42,6% APAC 12,3% NORTH AMERICA ITALY 9,6% 28,9% ROW 6,6% Direct presence in 30 countries 8 Manufacturing Sites 12 R&D Centers 2 DL LABS Note: Breakdown by area based on 2014 revenues 8 8
Slide 9: Customer Focus: Invest in Technology and Develop Excellent Products
Customer Focus: Invest in Technology and Develop Excellent Products A large and growing portfolio of over 1,150 patents and patent applications About 300 pending patent applications in all jurisdictions Portal Scanning 25% of sales from new products* 25 new products launched in 2014 and 7 in
Slide 10: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (September 25th, 2015): 14.1 Euro Bloomberg Code: DAL IM Market Cap (September 25th, 2015): 824 M Euro Outstanding Shares: 58,446,491 Specialist: Intermonte SIM Share Par-Value: 0.52 Euro each Auditing Company: Reco
Slide 11: Market Outlook
Market Outlook SDATALOGIC
Slide 12: Market Outlook – ADC & IA
Market Outlook – ADC & IA ADC IA (B$) (B$) CAGR + 5.1% 5.4 CAGR + 5.8% 4.2 4.6 3.5 50% 54% 54% CAGR +4.2% CAGR + 2.7% 56% 20% 17% 21% CAGR + 3.6% CAGR + 11.5% 15% 7% 7% CAGR + 4.9% CAGR + 7.5% 19% 18% 23% 18% CAGR + 2.7% CAGR + 13.3% 11% 10% 2014 2017e 2014 2017e Self Checkout Solutions POS Retail S
Slide 13: 2014 Market Share
ADC Market Share jumped in 2014 50% 45% Zebra Technologies 40% ADC Market Share: 10.4% 2014 Market Share 35% from 9.5% in 2013 30% POS Retail Scanners Honeywell 25% #1 WW 20% Handheld Scanners #1 in EMEA 15% #3 WW Datalogic 10% Denso Wave Mobile Computers 5% #3 in EMEA #3 WW 0% Casio - 200 400 600 8
Slide 14: 2014 Market Share
Datalogic positioning in the IA market 12% 2014 Market Share 10% Industrial Stationary 8% Scanners #1 WW 6% 4% 2% $100 M $200 M $300 M $400 M 2014 Revenues in $M 2014 IA Available Market including Industrial Barcode Scanners, Imagers, Photoelectric Sensors, Safety Light Curtains, Smart Source : VDC
Slide 15: Business and Strategy
Business and Strategy SDATALOGIC
Slide 16: A Unique Selling Proposition
A Unique Selling Proposition Transportation Factory Retail Healthcare & Logistics Automation Americas Emea Apac 16
Slide 17: Datalogic by Verticals
Datalogic by Verticals Group revenues by verticals Other Healthcare 4% 5% T&L 13% Retail 49% Factory Automation 29% ADC IA Other Healthcare T&L 1% 6% 6% Retail Healthcare 12% 7% Factory Factory T&L Automation Automation Retail 29% 58% 16% 65% 17
Slide 18: Wide and Complementary Offer
Wide and Complementary Offer INDUSTRIAL AUTOMATION AUTOMATIC DATA CAPTURE Retail T&L Factory Automation Healthcare 18
Slide 19: Retail Flows and Applications
Retail Flows and Applications DISTRIBUTION CENTER STORE WAREHOUSE IN-STORE CHECK-OUT Receiving Shipping Stock Shelf Mngm/Assisted Sales Check-out/Self Shop. Customer expectations Provide Better Reduce Checkout Control Cost & Customer Stock Control Queues Stock Efficiency Experience 19
Slide 20: Jade and System examples
Jade and System examples 60 Jades installed in 27 stores and 3 warehouse/logistic centers throughout Europe and U.S. Proven perfomance in pilots worldwide over the last 2 years Proven reliabilty over 3 years of testing and usage Several retailers in rollouts Expanding into backroom warehou
Slide 21: T&L Flows and Applications
T&L Flows and Applications DELIVERY DWS WAREHOUSING SORTING HANDLING Receiving Warehousing Fulfillment Shipping Customer expectations Ensure On-Time & Reduce delivery Improve Delivery Manage Large Control Cost & Zero-mistakes Times Accuracy Inventories & Items Efficiency results Variety 21
Slide 22: The Royal Mail – LPSS Opportunity
The Royal Mail – LPSS Opportunity Royal Mail needs to automate the sortation of the smaller parcels and packets because of the continued growth with e-commerce shipping The LPSS program is the first step in automating the handling of these products within the RM network. The goal is to develop a
Slide 23: Factory Automation
Factory Automation Factory Automation AUTOMOTIVE PACKAGING ELECTRONICS 23
Slide 24: Automotive Flows and Applications
Automotive Flows and Applications FINAL ASSEMBLING PARTS & COMPONENTS TEST & SUB ASSEMBLY CONTROL MARKING IDENTIFICATION QUALITY CONTROL AUTOMATION & SAFETY Customer expectations Accurate Vision Pervasive Parts Inspection & Tires Traceability Traceability Operators Safety Measurement 24
Slide 25: Electronics Flows and Applications
Electronics Flows and Applications COMPONENTS ELECTRONIC BOARDS DEVICES PACKAGES BOARD ASSEMBLING DEVICE TESTING PACKAGING Customer expectations Assembling Product Traceability Control Personalization/ Branding 25
Slide 26: Packaging Flows and Applications
Packaging Flows and Applications PROCESSING PACKAGING PACKING Customer expectations Object/Parts Warehouse ID/Traceability Quality Inspection Operator Safety Management Detection 26
Slide 27: Healthcare Flows and Applications
Healthcare Flows and Applications MEDIC. EQUIPMENT ADMITTANCE LABORATORY PHARMACY MEDIC. ADMIN. CHECK IN CLINICAL TEST POS BED CARE ASSET MANGT Customer expectations Preventing Increase Staff Realtime Tracking Accurate Asset Reducing Errors Infections Productivity & Tracing Management 27
Slide 28: Our Advantage
Our Advantage Retail HC Market T&L Market Products FA Market Market Packaging Electronics Automotive FRS HHR MC ID S&S LM Vision 28
Slide 29: Outlook for 2015
Outlook for 2015 H1 results confirm the positive trend of the Group in the European Market Positive trend in revenue booking in H1 at 271.5 M Euro, +16.8% compared to the same period of 2014 In H2 2015 growth in the European and Asian markets and a market recovery in the United States is expec
Slide 30: Financial Highlights
Financial Highlights DATALOGIC
Slide 31: Highlights 1H 2015
Highlights 1H 2015 Revenues growth driven by ADC in Europe, North America and fast growing markets thanks to robust investments by retailers and the launch of technologically advanced products Signs of recovery of Industrial Automation in Europe and APAC while North America still affected by the
Slide 32: Profit and Loss
Profit and Loss 000€ 1H2015 1H2014 Var % 2014 Revenues 257,485 100.0% 224,028 100.0% 14.9% 464,546 COGS (137,699) (53.5%) (114,950) (51.3%) (238,987) Gross Operating Margin 119,786 46.5% 109,078 48.7% 9.8% 225,559 Other revenues 1,209 0.5% 760 0.3% 2,239 R&D (23,449) (9.1%) (19,848) (8.9%) (43,108)
Slide 33: Strong Revenues Growth
Strong Revenues Growth REVENUES BY COUNTRY (%) REVENUES BY DIVISION (%) 6.6% 13.1% 51.3% 29.0% Europe North America Asia Pacific ROW REVENUES BY GEOGRAPHIC AREA REVENUES BY DIVISION €M 1H2015 1H2014 Var % €M 1H2015 1H2014 Var % Europe 132.0 117.7 12.1% ADC 177.4 149.1 19.0% IA 66.6 62.7 6.2% North A
Slide 34: 1H Segment Reporting
1H Segment Reporting Gross Operating 1H2015 1H2014 EBITDA Margin 1H2015 1H2014 Margin ADC 48.6% 51.0% ADC 20.5% 20.6% Industrial Automation 42.0% 43.4% Industrial Automation 1.0% 3.0% Informatics 44.8% 45.1% Informatics 0.8% 6.2% Total Group 46.5% 48.7% Total Group 13.3% 15.2% TWC/Annualized R&D/Rev
Slide 35: Consolidated Balance Sheet at 30.06.2015
Consolidated Balance Sheet at 30.06.2015 TOTAL ASSETS EQUITY AND LIABILITIES €mln Other Assets Other liabilities Trade Working Capital Net Financial Position Total Equity Fixed Assets 35
Slide 36: Contacts
Contacts IR CONTACTS NEXT EVENTS CFO and IR Manager October 5-6th, 2015 Sergio Borgheresi London Star Conference E-mail investor@datalogic.com November 5th , 2015 IR Assistant Approval 3Q results Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@datalogic.com Via Cand