Slide 1: Star Conference
Star Conference Milan, March 15th 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 & 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 1 STRONG High entry barriers granted by solid Intellectual Property POSITION Patents portfolio Better time to market and more efficiency than competitors History of profitable growth PROVEN TRACK 2 REC
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 41.6% APAC 13.4% NORTH AMERICA ITALY 8.5% 30.1% ROW 6.4% Direct presence in 30 countries 8 Manufacturing Sites 12 R&D Centers 2 DL LABS Note: Breakdown by area based on 2015 revenues 8 8
Slide 9: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (March 10th, 2016): 15.30 Euro Bloomberg Code: DAL IM Market Cap (March 10th, 2016): 894.2 M Euro Outstanding Shares: 58,446,491 Specialist: Intermonte SIM Share Par-Value: 0.52 Euro each Auditing Company: Reconta E
Slide 10: Market Outlook
Market Outlook SDATALOGIC
Slide 11: 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 + 2.7% 56% CAGR +4.2% 20% CAGR + 3.6% 17% 21% 15% CAGR + 11.5% 7% 7% CAGR + 4.9% 19% 18% CAGR + 7.5% 23% 18% 10% CAGR + 13.3% 11% CAGR + 2.7% 2014 2017e 2014 2017e Self Checkout Solutions POS Retail S
Slide 12: 2014 Market Share
Datalogic Market Share jumped in 2014 ADC Market 50% 45% POS Retail Scanners #1 WW 40% 2014 Market Share Handheld Scanners 35% #1 in EMEA 30% #3 WW 25% Mobile Computers 20% #3 in EMEA #3 WW 15% 10% Datalogic Market Share: 10.4% from 9.5% in 2013 5% 0% - 500 1,000 1,500 2,000 2014 Revenues in $M 2014
Slide 13: Datalogic positioning in the IA market
Datalogic positioning in the IA market IA Market 12% 2014 Market Share 10% Industrial Stationary 8% Scanners 6% #1 WW 4% Datalogic Market Share: 2% 22.8% $100 M $200 M $300 M $400 M 2014 Revenues in $M 2014 IA Available Market including Industrial Barcode Scanners, Imagers, Photoelectric Sensors, Sa
Slide 14: Market split by technology
Market split by technology Datalogic can offer all the technologies available for products identification Data Capture Technology $B 6.6 4.2% 30.2% Laser 47.6% RFID Linear Imager Optical 2D Imager 22.2% 95.8% 2015 (base year 2014) * includes only Hand Held Scanners, Industrial Stationary Scanners an
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: …with a Wide and Complementary Offer
…with a Wide and Complementary Offer INDUSTRIAL AUTOMATION AUTOMATIC DATA CAPTURE Retail T&L Factory Automation Healthcare 17
Slide 18: Datalogic Strategy and…
Datalogic Strategy and… STRATEGY ADVANTAGE Going vertical means moving from a product driven company to a customer driven company and THE OBJECTIVE finally reaching the result of THE SCOPE “delighting” our Customers To growth at a faster page To remain a product company with Shifting from a product
Slide 19: …Key Priorities
…Key Priorities Revenue Growth well above Market Growth Double Digit Growth in North America and China, improving Market Share Strong Improvement of Operations Efficiency reducing weight of COGS on revenues thanks to the new Procurement Centre in China, to plants rationalisation (new Hungharia
Slide 20: Customer Focus: Develop Excellent Products
Customer Focus: Develop Excellent Products A large and growing portfolio of about 1,200 patents and pending patent applications About 300 pending patent applications in all jurisdictions 26.7% of sales from new products* 25 new products launched in 2015 Portal Scanning 12 Research & Develo
Slide 21: Lead by invention: Investment in R&D will continue
Lead by invention: Investment in R&D will continue Temperature Logger Pocket Reader Desk/Wall Reader Investment in R&D to increase up to 9.5% of revenues Launch of RFID products: leveraging the acquisition of 20% of CAEN RFID Antenna and the commercial agreement signed Multiple Antenna Controlle
Slide 22: Moving From Products to Customers
Moving From Products to Customers 2015 Group revenues by division 2015 Group revenues by verticals Informatics Other 5% Healthcare 3% 5% IA T&L 27% 15% Retail 48% ADC Factory 68% Automation 29% 22
Slide 23: 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 23
Slide 24: 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 24
Slide 25: Factory Automation
Factory Automation Factory Automation AUTOMOTIVE PACKAGING ELECTRONICS 25
Slide 26: 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 26
Slide 27: 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 27
Slide 28: Packaging Flows and Applications
Packaging Flows and Applications PROCESSING PACKAGING PACKING Customer expectations Object/Parts Warehouse ID/Traceability Quality Inspection Operator Safety Management Detection 28
Slide 29: 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 29
Slide 30: Financial Highlights
Financial Highlights DATALOGIC
Slide 31: 2015 Key Factors
2015 Key Factors Anticipate clients’ needs offering new products to improve their efficiency and productivity FOCUS ON CLIENT Focus on innovation: 25 new products launched 27% of revenues comes from new products* (21% in 2014) Expansion in fast growing markets with double digit increase of r
Slide 32: Highlights FY 2015
Highlights FY 2015 +15.2% YoY to 535.1 mln Euro (+5.9% at constant exchange rate) Growth driven by ADC in North America, Greater China and Europe thanks to robust investments by retailers and the launch Revenues of technologically advanced products Industrial Automation exploits growth opportu
Slide 33: FY 2015 Profit and Loss
FY 2015 Profit and Loss (€000) FY2015 FY2014 Var % Revenues 535,068 100.0% 464,546 100.0% 15.2% COGS (286,450) (53.5%) (236,101) (50.8%) 21.3% Gross Operating Profit 248,618 46.5% 228,445 49.2% 8.8% Other Revenues 3,504 0.7% 2,239 0.5% 56.5% R&D (48,244) (9.0%) (43,108) (9.3%) 11.9% Distribution Cos
Slide 34: Revenues Trend by Country and Division
Revenues Trend by Country and Division REVENUES BY GEOGRAPHIC AREA REVENUES BY DIVISION €mln 2015 2014 Var % €mln 2015 2014 Var % Europe 268.5 244.0 10.0% ADC 364.0 309.7 17.5% IA 146.1 130.3 12.1% North America 161.1 132.6 21.4% - IA ex BU Systems 129.0 114.5 12.6% Asia Pacific 71.5 57.3 24.7% Info
Slide 35: FY2015 Segment Reporting
FY2015 Segment Reporting Gross Operating Profit 2015 2014 EBITDA* Margin 2015 2014 ADC 47.3% 50.8% ADC 22.3% 23.9% Industrial Automation 44.8% 45.7% Industrial Automation 5.9% 5.9% - IA ex BU Systems 50.1% 49.6% - IA ex BU Systems 9.3% 7.8% Informatics 43.7% 45.1% Informatics (0.1%) 4.9% Total Group
Slide 36: EBITDA: Actual vs Last Year
EBITDA: Actual vs Last Year Vol. sales/Mix 13,893 Service sales 1,759 73,748 15,652 4,242 69,443 8,830 ( 1,637 ) ( 7,789 ) ( 3,619 ) ( 11,374 ) Exch rate on sales 42,988 GM System : (2,301) Exch rate on COGS (31,692) Informatics : (1,318) Exch rate on Op Exp (12,933) Price Erosion : (2.1%) on Tot Re
Slide 37: Consolidated Balance Sheet at 31.12.2015
Consolidated Balance Sheet at 31.12.2015 TOTAL ASSETS EQUITY AND NFP € mln Other Assets 28.6 Trade Working 36.5 109.8 Other Liability Capital Net Financial 21.0 Position Total Fixed 298.3 Equity 364.0 Assets 37
Slide 38: Net Debt Analysis: Dec’14 – Dec’15
Net Debt Analysis: Dec’14 – Dec’15 Of which: Hungarian plant 4,517 SMT lines (VN, MSP, HU) 4,090 Machineries/production lines 1,861 (55,718) 78,036 Offices refurbishment (DL SpA,China,UK, ADC Inc.) 3,432 Moulds 1,697 Electronics machineries / Software 3,399 (10,471) (831) 822 (20,961) (14,692) Net D
Slide 39: Contacts
Contacts IR CONTACTS NEXT EVENTS IR Manager May 13th, 2016 Vincenza Colucci 1Q results CDR Communication Srl Tel. +39 335 6909547 August 4th, 2016 E-mail vincenza.colucci@cdr-communication.it 6M results E-mail ir@datalogic.com November 11th, 2016 IR Assistant 9M results Daniela Giglioli Tel. +39 051