Slide 1: STAR Conference Milan 27 March 2018
STAR Conference Milan 27 March 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. 4
Slide 5: Over 40 years of Technological Innovation
Over 40 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 54% NORTH AMERICA 28% APAC 13% LATIN AMERICA 5% Direct presence in 30 countries 8 Manufacturing Sites 11 R&D Centers 3 DL LABS Note: Breakdown by area based on FY 2017 revenues 6 6
Slide 7: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (March 22, 2018): 28.95 Euro Bloomberg Code: DAL IM Market Cap (March 22, 2018): 1.70 B Euro Outstanding Shares: 58,446,491 Auditing Company: EY Share Par-Value: 0.52 Euro each DATALOGIC PRICE PERFORMANCE SHAREHOLDE
Slide 8: Strategy and Outlook
Strategy and Outlook DATALOGIC
Slide 9: 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 10: A New Organisation by Verticals…
10 A New Organisation by Verticals… 10
Slide 11: …with a Wide and Complementary Offer…
…with a Wide and Complementary Offer… www.datalogic.com 11 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 12: …Innovative Solutions…
…Innovative Solutions… www.datalogic.com 12 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 13: …and a state of the art Customer Service
…and a state of the art Customer Service www.datalogic.com 13 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 14: 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 14
Slide 15: We play in a growing market
We play in a growing market RETAIL E-COMMERCE WAREHOUNSING IoT A N D LOGISTICS ROBOTICS 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 Datalogic products and solutions are essential for the e-commerce, the r
Slide 16: Retail
Retail Connecting People, Processes and Technology DATALOGIC PROPOSITION ▪ Market Leader along the Retail supply chain from 1974 with the first scanner in Troy, Ohio to 2018 with the NRF exhibition in New York with the innovative frictionless shopping ▪ Datalogic was the first company to introduce t
Slide 17: Example of how retailers are evolving
Example of how retailers are evolving Walmart Digital Eco-System 17
Slide 18: Manufacturing
Manufacturing The factory of the future DATALOGIC PROPOSITION ▪ With more than 45 years of experience, Datalogic is a world-class product & solutions provider for track & trace processes and quality control systems ▪ Datalogic is providing multi-product portfolio to serve all the major manufacturing
Slide 19: Some numbers and trends: digital factory
Some numbers and trends: digital factory Nine out of ten companies are investing in DIGITAL FACTORIES 19
Slide 20: Transportation & Logistics
Transportation & Logistics Visibility and interaction with the customer DATALOGIC PROPOSITION ▪ Datalogic sensors and vision systems guarantee the optimal traceability of packages and shipments ▪ The first generations of self-driving vehicles (autonomous shuttles and forklifts), used in controlled a
Slide 21: Transportation & Logistics
Transportation & Logistics AIRPORT STATIONARY INDUSTRIAL SCANNERS Baggage Handling Systems Baggage & Cargo Reconciliation Out Of Gauge Check-in and Baggage Drop-off Handling Access Control HAND HELD SCANNERS STATIONARY INDUSTRIAL HAND HELD MOBILE SCANNERS SCANNERS COMPUTERS www.datalogic.com 21 Copy
Slide 22: Healthcare
Healthcare Meet regulations and Higher Patient Safety DATALOGIC PROPOSITION ▪ Datalogic is the only company able to empower the entire Healthcare ecosystem from drug production to patient care or point of sale. ▪ Datalogic is the sole company providing unique product features for the HC industry suc
Slide 23: A clear strategy
A clear strategy THE OBJECTIVE THE SCOPE THE ADVANTAGE Remain a product company with new Moving from a product to emphasis on solutions to a Customer-centric satisfy the needs of End Company, leveraging on Keep on constantly Users in the following our wide range of growing, above Industries: Retail,
Slide 24: 2018 Outlook
2018 Outlook ▪ Grow in revenues at mid to high single digit rates ▪ 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, Manuf
Slide 25: Technologies and Products
Technologies and Products 25
Slide 26: 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 ▪ 13% of sales come from new products* ▪ 11 Research & Development Centers ▪
Slide 27: 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 28: Technology Stack
Technology Stack Solution Product Core driven driven technologies technologies technologies 28
Slide 29: 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 30: 2017 New Products Introduction
2017 New Products Introduction Q1 Q2 HAND HELD POWERSCAN MOBILE MEMOR™ X3 HC 9500 RT IMPACT 11.10 RELEASE MATRIX 120 AUTOMATION MATRIX 300N AUTOMATION WA and POLARIZED POLARIZED DLR-TL001 HALOGEN DE2012-WA-DL RFID DLR-BT001 LABS DLR-DK001 Q3 Q4 DSE04x1 POWERSCAN™ 9100 HAND HELD QW2400 MOBILE New tri
Slide 31: Financials
Financials Seer esos SDATALOGIC
Slide 32: Best ever results in Datalogic history
Best ever results in Datalogic history €m FY2017 RESULTS REVENUES 17.0% €606.0 EBITDA €60.1 +5.1% €103.3 MARGIN NET (+6.0% at constant FX) EBITDA (+1.3 p.p.) INCOME (+14.3%) (+31%) Q4 RESULTS REVENUES 16.4% €155.3 EBITDA €15.0 +0.4% €25.4 MARGIN NET (+3.7% at constant FX) EBITDA (+1.1 p.p.) INCOME (
Slide 33: Improvements across the whole P&L
Improvements across the whole P&L FY2017 FY2016 Var% €m Revenues 606.0 576.5 5.1% ▪ Revenues up 5.1% to €606.0 m (+6.0% at constant exchange rate) Gross Operating Margin 288.4 265.1 8.8% ▪ GOM showing steady improving %on Revenues 47.6% 46.0% trend at 47.6% (around +160 bps vs 2016) Operating expens
Slide 34: Group Revenues by country
Group Revenues by country REVENUES BY GEOGRAPHIC AREA ▪ Strong growth in APAC driven by China (+55%) in Manufacturing mainly €m FY 2017 FY 2016 Var% EMEA 327.5 304.5 7.5% ▪ Confirming leadership in EMEA led by Retail (+11%) North America 171.4 178.3 (3.8%) Latin America 27.5 30.0 (8.5%) ▪ NA growth
Slide 35: Group Revenues & EBITDA by division
Group Revenues & EBITDA by division REVENUES BY DIVISION Informatics Solution Net €m FY2017 FY2016 Var% 3% Systems 4% Datalogic 564.0 534.2 5.6% Solution Net 24.7 20.2 22.5% Systems Informatics 20.6 24.4 (15.5%) Adjustments (3.3) (2.3) 42.2% Total Revenues 606.0 576.5 5.1% Datalogic 93% ▪ Datalogic
Slide 36: EBITDA: actual vs last year
EBITDA: actual vs last year €m 17.0 % on 15.7 % on Group Group Revenues Revenues 9.8 0.2 0.9 1.6 103.3 11.9 90.4 12.3 (12.2) (11.5) -2.3% on DL Business 2017 revenues FY 2016 Price Volume Mix Service COGS FX Structure SNS/INF FY 2017 Positive Items Negative Items 36
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet €m Dec 2016 Dec 2017 Dec 2016 Dec 2017 Net Financial Total Fixed Assets 371.7 347.9 (3.5) (30.1) Position Trade receivables 75.5 83.2 % on 12m rolling sales 13.1% 13.7% Inventories 82.3 85.9 % on 12m rolling sales 14.3% 14.2% Trade payables (104.6) (107.7) Net Equity 336.4
Slide 38: Net Debt Analysis: Dec’16 – Dec’17
Net Debt Analysis: Dec’16 – Dec’17 Acc. Receivable (6.8) €m 103.3 Inventory (2.1) Acc. Payable 2.3 (6.6) (13.9) (17.3) (5.8) (17.4) 30.1 -2.4% on (8.0) Revenues (7.6) 3.5 Net Debt EBITDA Ch TWC Capex Taxes Net Financial Dividend Soredi Other Net Debt Dec 16 Charges Paymemt Acquisition Dec 17 Of whic
Slide 39: Contact
Contact IR CONTACTS NEXT EVENTS IR Manager May 9th, 2018 Vincenza Colucci 1Q results CDR Communication Srl Tel. +39 335 6909547 May 23rd , 2018 vincenza.colucci@cdr-communication.it Shareholders’ meeting IR Assistant August 9th, 2018 Daniela Giglioli 6M results Tel. +39 051 3147109 Fax +39 051 31472