Datalogic S.p.a. · MIL:DAL
Datalogic — Exane BNP Paribas MidCap CEO Conference 2018
38 slides from Datalogic's conference presentation, Nov 27, 2018
Slide 1: Exane BNP Paribas MidCap CEO Conference
Exane BNP Paribas MidCap CEO Conference Paris, 27 November 2018
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: Group Overview
Group Overview DATALOGIC
Slide 4: Datalogic at a glance
Datalogic at a glance Global technology leader in the automatic data capture and process automation markets, in the Retail, Manufacturing, Transportation & Logistics, and Healthcare industries Founded in 1972, listed on the Italian Stock Exchange since 2001 3,104 55% 24% 21% 4
Slide 5: Over 45 years of Technological Innovation
Over 45 years of Technological Innovation 1972 FOUNDATION Established in Bologna 1988 Escort Memory Systems Inc. EXPANSION IDWare Mobile Computing&Comm. 1997 2001 LISTING Listed on the STAR segment of Italian Stock Exchange Minec AB Laservall SpA Informatics Inc. PSC Inc. 2002 EXPANSION Datasensor S
Slide 6: A Wide Geographical Footprint
A Wide Geographical Footprint EMEA 51% NORTH AMERICA 33% APAC 14% LATIN AMERICA 2% Direct presence in 30 countries 8 Manufacturing Sites 11 R&D Centers 3 DL LABS Note: Breakdown by area based on 9M 2018 revenues 6 6
Slide 7: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (November 21, 2018): 22.00 Euro Bloomberg Code: DAL IM Market Cap (November 21, 2018): 1.29 B Euro Outstanding Shares: 58,446,491 Auditing Company: EY Share Par-Value: 0.52 Euro each DATALOGIC PRICE PERFORMANCE SHAR
Slide 8: Strategy and Outlook
Strategy and Outlook DATALOGIC
Slide 9: A clear strategy
A clear strategy THE OBJECTIVE THE SCOPE THE ADVANTAGE Keep constantly Remain a product company Moving from a Product to a growing above with new emphasis on Customer-Centric company, market average, solutions to satisfly the leveraging on our wide while significantly needs range of products, improv
Slide 10: Unique Player across IA and ADC Markets
Unique Player across IA and ADC Markets DATALOGIC is the only player across the Global competitive landscape who can boast a wide and consolidated experience in both the two fields of: ▪ Industrial Automation (dating back to the foundation of the company) ▪ Automatic Data Capture (leadership derivin
Slide 11: A New Organization by Verticals…
A New Organization by Verticals… Note: Figures represent the Revenues breakdown of the Datalogic division at 9M 2018 www.datalogic.com 11 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 12: …with a Wide and Complementary Offer
…with a Wide and Complementary Offer www.datalogic.com 12 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 13: Total Addressable Market
Total Addressable Market Total Addressable Market @ $11 BN CAGR 2017-2021 +5.4% Healthcare 4% T&L 11% Healthcare T&L Retail Retail 21% Manufacturing Manufacturing 64% 2017 Source: VDC 2017 and Management estimates 13
Slide 14: We play in a growing market
We play in a growing market 2016: 1.86 trillion USD 2016: 1.9 billion USD 2016: 3.9 trillion USD 2021: 4.48 trillion USD 2021: 22.4 billion USD 2025: 11.1 trillion USD Retail Warehousing and e-Commerce Logistics Robotics Internet of Things Datalogic products and solutions are essential for the e-com
Slide 15: Retail
Retail Bringing offline and online together DATALOGIC PROPOSITION FROM WAREHOUSE TO CHECKOUT ▪ We satisfy globally the Retailers business needs, from Distribution Center to Check Out and Shoppers’ Home ▪ Market Leader along the Retail supply chain from 1974 with the first scanner in Troy, Ohio to 20
Slide 16: Retail
Retail Bringing offline and online together MARKET OUTLOOK ▪ Online retailers are opening brick-and-mortar stores, while traditional retailers are converting physical store locations into semi-distribution hubs ▪ Retailers who collect customer data on every step of the journey are headed in the righ
Slide 17: Manufacturing
Manufacturing The factory of the future DATALOGIC PROPOSITION ▪ Unique portfolio provider of smart, interconnected devices able to protect, identify, sense, check and mark ▪ Datalogic is providing multi-product portfolio to serve all the major manufacturing clients: Automotive, Food and Beverage, Au
Slide 18: Manufacturing
Manufacturing The factory of the future MARKET OUTLOOK ▪ Market is booming ▪ Industry 4.0 ▪ Robotics / AGV ▪ DPM / Extended Traceability and Quality Inspection ▪ New segments due to new technology (i.e. Electric car) ▪ Industry 4.0 is pushing for multi-technology adoption, product interoperability a
Slide 19: Transportation & Logistics
Transportation & Logistics End to end visibility and real time tracking DATALOGIC PROPOSITION ▪ We ensure Data Collection to Courier-Express- Parcels, Airports and Logistics ▪ Datalogic is at the forefront of the development of airport systems, since 1984 with the first automatic reading station in
Slide 20: Transportation & Logistics
Transportation & Logistics End to end visibility and real time tracking MARKET OUTLOOK ▪ Growth is driven by E-commerce: high speed sorting, ability to manage any size of parcel, and high flexibility. E-Commerce is driving the industry growth ▪ Resolution 753 requires (from June 2018) IATA members t
Slide 21: Healthcare
Healthcare Meet regulations and Higher Patient Safety DATALOGIC PROPOSITION ▪ We empower the entire Healthcare ecosystem from drug production to patient care ▪ Datalogic is the sole company providing unique product features for the HC industry such as: Anti-microbial enclosures, Inductive charging t
Slide 22: Healthcare
Healthcare Meet regulations and Higher Patient Safety MARKET OUTLOOK ▪ Drugs tracking to avoid counterfeit medications ▪ RTLS (Real Time Location System) - System used to provide immediate or real-time tracking and management of medical equipment, staff and patients within all types of patient care
Slide 23: 2018 Outlook
2018 Outlook ▪ Revenues expected to grow at higher rates in 4Q ▪ Maintain a sound profitability through strong focus on gross operating margin improvements ▪ Further increase R&D investments & Distribution costs to improve our coverage and boost leadership in key areas (North America, APAC, Manufact
Slide 24: Technologies and Products
Technologies and Products 24
Slide 25: Product Innovation and Development
Product Innovation and Development ▪ New product development process driven by customer needs ▪ A portfolio of more than 1.200 patents ▪ 9.1% of Revenues invested in R&D on a yearly basis, equal to over €55 million in 2017 ▪ 11 Research & Development Centers ▪ 470 R&D resources, more than 450 Engine
Slide 26: Datalogic Technology Roadmap
Datalogic Technology Roadmap Goal: Methodology: Identification – selection – protection - Define the technology stack, divided by: development, of technologies needed to • Core technologies: Not available on the maintain the business performance in market accordance with the company’s • Product driv
Slide 27: Market split by Technology
Market split by Technology Datalogic can offer all the technologies available for products identification Data Capture Technology RFID 5% Laser Scanner 28% 2D Imager 57% Linear OPTICAL Imager 95% 16% includes only Hand Held Scanners, Industrial Market Value: $4.3 Bn Stationary Scanners and Point of
Slide 28: 2018 Third Quarter Product Launches
2018 Third Quarter Product Launches A further important step towards Android mobile operating system: Memor™ 10 mobile computer has been validated for the Google™-led initiative “Android Enterprise Recommended” program for rugged devices. GRYPHON GD4500 Corded version The Gryphon™ 4500 2D series rep
Slide 29: Financials
Financials Seer esos SDATALOGIC
Slide 30: Revenues improved quarter on quarter
Revenues improved quarter on quarter Q3 Q3 Var% €m 2018 2017 ▪ Revenues up 5.1% to €159.1 mln (+4.9% at constant Revenues 159.1 151.4 5.1% exchange rate) Gross Operating Margin 77.3 70.3 10.0% ▪ GOM improvement thanks to mix and cost efficiencies (+ 220 %on Revenues 48.6% 46.4% bps) Operating expens
Slide 31: Improved Gross Margin to finance R&D and S&D
Improved Gross Margin to finance R&D and S&D 9M 9M Var% ▪ Revenues up 3.4% to €466.1 m €m 2018 2017 (+6.9% at constant exchange rate) Revenues 466.1 450.7 3.4% ▪ GOM showing steady improving trend at 48.6% (around +150 bps Gross Operating Margin 226.7 212.5 6.7% vs 9M 2017) %on Revenues 48.6% 47.1%
Slide 32: Group Revenues by country
Group Revenues by country REVENUES BY GEOGRAPHIC AREA ▪ Sound 9M growth net of Var% forex €m 9M 2018 9M 2017 Var% Ex forex ▪ 3Q revenues growth driven EMEA 238.0 237.7 0.1% 0.8% by North America at + 32% North America 152.6 141.2 8.1% 15.2% Latin America 11.1 12.7 (12.3%) (3.5%) ▪ Continuous growth
Slide 33: Group Revenues & EBITDA by division
Group Revenues & EBITDA by division REVENUES BY DIVISION INF €m 9M2018 9M2017 Var% SNS 3% 5% Datalogic Business 431.1 417.7 3.2% Solution Net Systems 22.4 19.3 16.1% Informatics 14.6 16.4 (10.8%) Adjustments (2.0) (2.7) (25.4%) Total Revenues 466.1 450.7 3.4% Datalogic 92% ▪ Datalogic driven at cons
Slide 34: Market Results
Market Results Retail Manufacturing ▪ 30% of DL Division Revenues ▪ 50% of DL Division Revenues ▪ 9M 2018 Revenues €130.8 mln ▪ 9M 2018 Revenues €214.2 mln (+13.6% YoY, 15.9% ex Forex) (+4.0% YoY, +8% ex Forex) ▪ 3Q 2018 Revenues € 40.8 mln (+8.1% ▪ 3Q 2018 Revenues €72.6 mln (+7% YoY, 8.1% ex Forex
Slide 35: EBITDA: actual vs last year
EBITDA: actual vs last year €m 16.6% on 17.3 % on Group Group Revenues Revenues 5.6 0.7 0.8 12.5 9.8 1.2 77.9 77.5 (20.5) (10.5) -2.1% on DL Business 2018 revenues* 9M 2017 Price Volume Mix Service COGS FX Structure SNS/INF 9M 2018 Positive Items Negative Items * Excluding GCO and Service 35
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet €m Dec 2017 Sep 2018 Dec 2017 Sep 2018 Net Financial Total Fixed Assets 347.9 356.4 (30.1) (10.9) Position Trade receivables 85.8 90.0 % on 12m rolling sales 14.2% 14.5% Inventories 85.9 109.1 % on 12m rolling sales 14.2% 17.6% Trade payables (110.3) (115.6) Net Equity 353
Slide 37: Net Debt Analysis: Dec'17 – Sep'18
Net Debt Analysis: Dec’17 – Sep’18 Acc. Receivable (4.2) €m Inventory (23.2) 77.5 Acc. Payable 5.3 (22.0) (15.1) (16.0) (5.0) 30.1 (10.9) -3.2% on Revenues 10.9 1.0 (28.9) Net Debt EBITDA Ch TWC Capex Taxes Net Financial Purchase Dividend Other Net Debt Dec 17 Charges Own Shares Payment Sep 18 Of wh
Slide 38: Contact
Contact IR CONTACTS DATALOGIC ON LINE IR Manager www.datalogic.com Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 vincenza.colucci@cdr-communication.it IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@datalogic.com ir@datalogic.com Via Candi
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