Datalogic S.p.a. · MIL:DAL

Datalogic — STAR Conference Milano 2014

35 slides from Datalogic's conference presentation, Mar 26, 2014

  1. Slide 1: STAR Conference Milano

    STAR Conference Milano 25-26 March, 2014

  2. Slide 2: Agenda

    Agenda  Group Overview  Strategy and Outlook  2013 Results 2

  3. Slide 3: Group Overview

    Group Overview DATALOGIC

  4. Slide 4: Datalogic at a glance

    Datalogic at a glance  Global leader in Automatic Data Capture and Industrial Automation markets  World-class producer of barcode readers, mobile computers, sensors, vision systems and laser marking systems with innovative solutions in retail, manufacturing, transportation & logistics and healthca

  5. Slide 5: Consistent Growth in 2001-2013

    Consistent Growth in 2001-2013 SALES CAGR 2001-2013 +12% EBITDA CAGR 2001-2013 +12% 462 63 451 59 60 426 404 393 382 380 50 50 48 312 38 32 206 25 146 21 20 118 132 16 17 112 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

  6. Slide 6: A history of growth through acquisitions

    A history of growth through acquisitions Acquisition of Informatics Acquisition of Inc. (TX, USA) Accu-Sort Systems Inc. (PA, USA) Established in Bologna Acquisition of PSC Inc. Acquisition of (OR, USA) PPT Vision Inc. Listing on the Milan (MN, USA) Stock Exchange Acquisition of Laservall SpA (Italy

  7. Slide 7: A wide geographical footprint

    A wide geographical footprint EUROPE 40.8% NORTH AMERICA 31.9% ITALY 8.4% APAC 12.5% ROW 6.4% Direct presence in 30 countries worldwide 8 Manufacturing Sites 12 R&D Centers Note: Breakdown by area based on 2013 revenues © Copyright Datalogic 2007-2013 7 7

  8. Slide 8: Stock and Governance

    Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (March 21st, 2014): 9.26 Euro Bloomberg Code: DAL IM Market Cap (March 21st, 2014): 541 M Euro Outstanding Shares: 58,446,491 Specialist: Intermonte SIM Share Par-Value: 0.52 Euro each Auditing Company: Reconta Erns

  9. Slide 9: Strategy and Outlook

    Strategy and Outlook DATALOGIC

  10. Slide 10: Worldwide market trend: two speeds for ADC and IA

    Worldwide market trend: two speeds for ADC and IA Automatic Data Capture Industrial Automation  ADC addressable market was down 3.5% in  Very fragmented IA industry with potential 2012 due to the economic crisis, forecast addressable markets worth $3B in the reviewed downward for the entire period

  11. Slide 11: ADC positioning: competing with giants

    ADC positioning: competing with giants • A global Leader in ADC and the only • Better time to market, more efficiency company focus on Auto ID • Strong customer-focus ADC Market Share around 10% 2012 Market Share POS Retail Scanners #1 WW – 32.8% mkt share Handheld Scanners #1 in EMEA – 33.8% mkt sh

  12. Slide 12: IA positioning: 6% market share

    IA positioning: 6% market share • One of the few focused player • Growing technology convergence: importance of past investments in R&D. Industrial Stationary Scanners >15% #1 WW – 27.5% mkt share 2012 Market Share #1 in Americas – 31.3% mkt 12% share #2 in EMEA – 29.1% mkt share 8% 6% 4% 2% $50 M $

  13. Slide 13: Three Year Plan: the new paradigma

    Three Year Plan: the new paradigma Customer People Focus Engagement Market Expansion 13

  14. Slide 14: New Business Development Division

    New Business Development Division  Core Competences  New Emerging Technologies  Set up of the new Business  Integration Office Development Division to meet and anticipate current and future customer needs  In 2013 R&D expenses up 11.2% to 35.6 M Euro with an increased weight on revenues from 6.

  15. Slide 15: Retail: 38% of revenues

    Retail: 38% of revenues* Leverage the great Automatic Data Capture market share in POS checkout POS Maintain / upgrade customer base  Most innovative solutions  Multi-tier model Store mngt Increase customer penetration  New products  Tailored services Industrial Automation Warehouse Maximize cus

  16. Slide 16: Manufacturing: 37% of revenues

    Manufacturing: 37% of revenues* Leverage the product Automatic Data Capture breadth and distribution channel Warehouse Maintain / upgrade customer base  Packaged solutions  Tailored services Shop floor Industrial Automation Increase customer penetration  Replicate EMEA channel model Automation Ma

  17. Slide 17: Transportation & Logistic: 16% of revenues

    Transportation & Logistic: 16% of revenues* Leverage leadership Automatic Data Capture in sorting applications Data Collection Increase customer penetration  New products  Data fusion Sorting Maintain / upgrade customer base Industrial Automation  Product refinement  Aggressive sales Delivery Se

  18. Slide 18: Healthcare: 6% of revenues

    Healthcare: 6% of revenues* Anticipate new Automatic Data Capture regulatory E-pedigree European Medicines Verification System Manufacturing Increase customer penetration  New products  Data fusion Inventory mngt Industrial Automation Increase customer penetration  Tailored services  Channel pro

  19. Slide 19: Market expansion – Exploit fast growing markets

    Market expansion – Exploit fast growing markets  Increase penetration in large regions and fast growing geographies: CAGR 2012-2015 +12%  Large potential in all key industries for automation investments (focus on Sensors & Vision in BRICS)  Boost growth in under served countries like China, Korea

  20. Slide 20: Invest in people management and motivation

    Invest in people management and motivation Datalogic Human Resources key strategic pillar: Differentiated performance through our people!  A new strengthened Human Resources leadership to enable Datalogic business strategy & agenda by ensuring:  the design and delivery of a high performance organi

  21. Slide 21: Three Year Plan 2013-2015

    Three Year Plan 2013-2015 REVENUES GROWTH EBITDA GROWTH 2012-2015 CAGR >5% 535-545 2012-2015 CAGR ~8% 463,1 78-80 450.7 425.5 392,7 63,2 59.9 59,2 312 49,8 14% 15% 13% 14% 13% 19,7 6% 2009 2010 2011 2012 2013 2015E 2009 2010 2011 2012 2013 2015E EBITDA EBITDA Margin  Revenues 2012-2015 CAGR over 5%

  22. Slide 22: Three Year Plan 2013-2015

    Three Year Plan 2013-2015 Net Financial Position ** ROE GROWTH 2010 2011 2012 2013 Cash Flow 2015E 17%-18%% 17,7% 15% (36-41) 14,0% (59) (76) 6,0% (97) 56-61 (121) 2010 2011 2012* 2013 2015E  Strong cash generation: Net Debt/Equity ratio < 20% and Net Debt/EBITDA around 0.5X  Investment in CAPEX s

  23. Slide 23: 2013 Results

    2013 Results DATALOGIC

  24. Slide 24: Highlights 4Q 2013

    Highlights 4Q 2013  Revenues improved both on a quarterly (+7.1%) and on a yearly (+4.6%) basis  Strong recovery continued in terms of revenues and marginality on a yearly basis: EBITDA +60.2% and EBITANR +78.2% YOY  Ebitda Margin improved from 9.1% in 4Q2012 to 14.0% in 4Q2013  Improvement of I

  25. Slide 25: Signs of recovery in the second half

    Signs of recovery in the second half  Two speed year with 2H2013 revenues providing signs of recovery +6% YOY  Revenues trend on a yearly basis (-2,5% YoY) is improving even if still reflecting low retail investments Revenues Growth EBITDA Growth +6% 250 40 35 +29% 200 Q4 30 Q2 Q4 120.0 25 150 116

  26. Slide 26: Highlights 2013

    Highlights 2013  ADC revenues continued to grow in emerging markets +11%; IA revenues improved by 12% in Europe and 2% in North America  Gross Operating Margin up 1% to 47.1%  All operating costs well under control allowing an EBITDA Group Margin of 13.3% - ADC EBITDA Margin nearly 18%  Strong c

  27. Slide 27: Full Year 2013 Profit and Loss

    Full Year 2013 Profit and Loss 000€ 2013 2012 Restated Var % Revenues 450,737 100.0% 462,250 100.0% (2.5%) COGS (238,476) (52.9%) (249,324) (53.9%) (4.4%) Gross Operating Margin 212,261 47.1% 212,926 46.1% (0.3%) Other revenues 1,974 0.4% 6,893 1.5% (71.4%) R&D (35,614) (7.9%) (32,027) (6.9%) 11.2%

  28. Slide 28: Revenues Trend

    Revenues Trend REVENUES BY DIVISION REVENUES BY AREA €000 2012 2013 Var % €000 2012 2013 Var % Datalogic ADC 297,928 282,387 (5.2%) Italy 38,978 38,040 (2.4%) Datalogic Automation 130,614 137,825 5.5% Europe 181,428 183,810 1.3% Informatics 34,127 30,778 (9.8%) North America 159,227 143,876 (9.6%) D

  29. Slide 29: Segment Reporting: GOP and Ebitda

    Segment Reporting: GOP and Ebitda GROSS OPERATING MARGIN EBITDA MARGIN (€mln) (€mln) 63,2 60,0 212,9 212,3 50,4 46,3 141,5 138,7 56,7 60,2 22,2 21,6 7,4 8,0 5,5 14,7 13,1 4,1 2,5 -1,1 ADC IA Informatics DL SpA Total Group ADC IA Informatics DL SpA Total Group 2012 2013 2012 2013 GOP Margin 2012 2013

  30. Slide 30: Segment Reporting: R&D and TWC

    Segment Reporting: R&D and TWC R&D COSTS TWC (€mln) 35,6 (€mln) 32,0 60,6 20,7 39,0 18,5 34,7 11,7 12,5 23,4 16,5 7,5 14,1 6,9 2,2 3,3 2,3 0,8 0,9 0,5 ADC IA Informatics Business Total Group ADC IA Informatics DL SpA Total Group Development 2012 2013 2012 2013 R&D/Revenues 2012 2013 TWC/Annualized R

  31. Slide 31: EBITANR: Actual vs Last Year

    EBITANR: Actual vs Last Year (€/000) Other revenues - 4,920 Vol. sales/Mix -3,490 Other variable costs -2,693 Service sales +2,458 Direct Cogs +4,446 15,579 (445) (1,078) 53,412 (12,293) (870) (3,167) 50,106 (1,032) - 2.7% on Revenues Exch rate on sales -9,403 Exch rate on DCOGS +4,587 Exch rate on

  32. Slide 32: Consolidated Balance Sheet

    Consolidated Balance Sheet €000 At 31/12/2012 At 31/12/2013 Intangible fixed assets 60,262 59,058 Goodwill 151,134 145,092 Tangible fixed assets 51,621 51,328 Non Consolidated investments 3,936 5,452 Other fixed assets 46,602 39,441 Total Fixed Assets 313,555 300,371 Net trade account receivables 82

  33. Slide 33: Net Debt Analysis

    Net Debt Analysis Tax Payment - 14,012 (€/000) VAT -733 Acc. Receivable +12,084 LT MIP -14,349 (121,118) 55,926 Inventory -4,650 Other +8,191 Acc. Payable +15,014 (20,903) (97,007) (17,132) 22,448 (9,431) 1,728 (8,525) Net Income +26,906 Deprec&Amort +15,644 Personnel & admin costs accrual +2,731 LT

  34. Slide 34: Contacts

    Contacts IR CONTACTS NEXT EVENTS CFO and IR Manager March 25-26th , 2014 Marco Rondelli STAR Conference Milan E-mail investor@datalogic.com April 23rd, 2014 IR Assistant Ordinary Shareholders’ Meeting Daniela Giglioli Tel. +39 051 3147109 May 7th , 2014 Fax +39 051 3147205 Board of Directors to appr

  35. Slide 35: 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

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