Datalogic S.p.a. · MIL:DAL

Datalogic — STAR Conference London 2014

39 slides from Datalogic's conference presentation, Oct 2, 2014

1. Slide 1: STAR Conference London

   STAR Conference London October 2nd, 2014

2. Slide 2: Agenda

   Agenda  Group Overview  Business Outlook  Strategy  Financial Highlights 2

3. Slide 3: Group Overview

   | Group Overview DATALOGIC

4. Slide 4: 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 – 38% 2013 Rev.  Manufacturing – 37% 2013 Rev.  Transportation & Logistics – 16% 2013 Rev.  Healthcare Industries –

5. Slide 5: Investment Case

   Investment Case Strong position Financials Valuation  Unique player world wide  History of profitable  Significant discount on with leadership in two growth peers on a 2015 P/E and markets: ADC and IA EV/EBITDA basis (42%  Wise resources and 46% respectively)  High entry barriers management to

6. Slide 6: Solid Growth in 2001-2013

   Solid Growth in 2001-2013 Sales CAGR 2001- 2013 + 12% EBITDA CAGR 2001- 2013 + 12% 462 451 63 59 60 426 404 393 382 380 50 50 48 312 38 32 206 25 21 20 132 146 16 17 112 118 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 2

7. Slide 7: A history of organic growth and acquisitions

   A history of organic growth and acquisitions Acquisition of Acquisition of Accu-Sort Informatics Inc. Systems Inc. Acquisition of Acquisition of PSC Inc. PPT Vision Inc. Established in Bologna Listing on the Acquisition of Milan Stock Acquisition of Laservall SpA Exchange Evolution Robotics Acquisit

8. Slide 8: A wide geographical footprint

   A wide geographical footprint EUROPE 42% NORTH AMERICA 29% ITALY 11% APAC 12% ROW 7% Direct presence in 30 countries worldwide 9 Manufacturing Sites 12 R&D Centers Note: Breakdown by area based on 1H2014 revenues 8

9. Slide 9: Business Outlook

   | Business Outlook DATALOGIC

10. Slide 10: Market Outlook – Automatic Data Capture

    Market Outlook – Automatic Data Capture  Strong recovery ahead with forecast reviewed upward for the entire period: CAGR 2013-2016 +5.0%  Positive expected growth trend in all product lines and in the checkout space where retailers look for improvement of the service level and better efficiency CA

11. Slide 11: Market Outlook – Industrial Automation

    Market Outlook – Industrial Automation  Positive market trend in all the segments Datalogic is operating in  Laser marking technology and machine vision increase their applications in the factory environment  Increase demand for safety in the factories and the automated warehouses drive the growt

12. Slide 12: Datalogic positioning in the ADC market

    Datalogic positioning in the ADC market  A smaller, dedicated Company vs. divisions of large multinational Group:  Better time to market, more flexibility  Strong customer-focus  Entrance in the OEM arena thanks to FTC decision to provide Datalogic access to Honeywell portfolio (2D scan engine i

13. Slide 13: Datalogic positioning in the IA market

    Datalogic positioning in the IA market  For Packaging, Electronics, Automotive, Parcel Companies and Intralogistic, Datalogic IA is the only player that can provide the most complete and high performing offer of products and solutions aimed at improving the efficiency and the quality of operational

14. Slide 14: Revenues Breakdown by Verticals

    Revenues Breakdown by Verticals Revenues Breakdown by Verticals* ADC Revenues Breakdown by Verticals* IA 5% 3% 5% 10% 6% 18% 54% 33% 66% Retail Manufacturing Manufacturing T&L Retail Healthcare Healthcare T&L Commercial Services * Revenues as of August 2014 14

15. Slide 15: Market split by technology

    Market split by technology Datalogic can offer all the technologies available for products identification Data Capture Technology Hand Held Scanners $B 6.6 4.2% 31% Laser Scanner 47% Linear Imager 2D Imager RFID 22% Optical Mobile Computers 5.2% Laser Scanner 95.8% 21.0% Linear Imager 2D Imager 2014

16. Slide 16: Leverage the Retail recovery

    Leverage the Retail recovery  Retailers’ investment recovery Automatic Data Capture ongoing  Positive sentiment in US  Growth driven by technological innovation: from laser to imaging (Magellan 9800 i) Industrial Automation  Jade, the 360° automated portal scanner in testing phase in more than 1

17. Slide 17: Manufacturing: Automation Increases

    Manufacturing: Automation Increases  Unprecedented level of Automatic Data Capture automation endorsed by both traditional and emerging markets  Geographical presence expansion in the fast growing markets  Packaged solutions bundling laser marking and machine vision Industrial Automation  Launch

18. Slide 18: T&L: Leverage Sorting Application Leadership

    T&L: Leverage Sorting Application Leadership  Increasing importance of “Big Automatic Data Capture Data”, fusion of barcode, dimensions and image  Focus on Couriers, Postal, e- Commerce, Distribution Centers in North America and Europe  Growth still linked to large projects worldwide  Launch of

19. Slide 19: Healthcare: Anticipate Regulatory Changes

    Healthcare: Anticipate Regulatory Changes  Anticipation of regulatory changes: Automatic Data Capture  E-pedigree in US  European Medicines Verification System  Wider offer of specialized products and solutions  Scanners with anti-microbial Industrial Automation additives specifically engineere

20. Slide 20: Strategy

    | Strategy DATALOGIC

21. Slide 21: Three Pillars Strategy

    Three Pillars Strategy Customer People Focus Engagement Market Expansion 21

22. Slide 22: BD Division: the bridge between customers and products

    BD Division: the bridge between customers and products… BUSINESS DEVELOPMENT DIVISION CLIENTS PRODUCTS  Business Development Division:  Datalogic Labs  M&A  New needs and applications scouting  R&D investments over 8% to beat competition and improve market shares  Exploring alternative technol

23. Slide 23: …to accelerate Innovation

    …to accelerate Innovation PRODUCT INNOVATION 35 33 34 32 32  23 new products in 2013 27 25 22 23 23 23 22 23 20  Large and growing portfolio of 16 16 17 14 13 14 nearly 1,100 patents 12 11 12 9 9 10 10 8 8 7 6 6 5 6 1 2 11 43 2 4 3 4 3 44 1  Over 100 patents filed in 2013 0 0 0 0 2001 2002 2003 2

24. Slide 24: Market expansion: exploit fast growing markets

    Market expansion: exploit fast growing markets  Increasing penetration in large regions and fast growing geographies with a target to get one third of total revenues  Centralized Purchase Centre in China to reduce component costs • New Purchase Centre • New R&D Centre JV with IDEC Corporation New

25. Slide 25: Invest in people management and motivation

    Invest in people management and motivation Differentiated performance through our people!  New strengthened Human Resources leadership to enable Datalogic business strategy & agenda ensuring:  high performance organization design and delivery  selection and retention of top talents  people devel

26. Slide 26: Outlook

    Outlook  ADC confirms to be the driver of growth thanks to:  the launch of new technologically advanced products  the retailers’ new investment phase  In Industrial Automation, the market and product strategy will be revised in next quarters with particular focus on North America. Expected recov

27. Slide 27: Financial Highlights

    | Financial Highlights DATALOGIC

28. Slide 28: Highlights 1H 2014

    Highlights 1H 2014 Full Year €000 1H2014 1H2013 Var % 2013 Revenues 224,028 218,769 2.40% 450,737 % on Revenues 100.0% 100.0% 100.0% Gross Operating Profit 109,078 103,432 5.50% 212,261 % on Revenues 48.7% 47.3% 47.1% EBITDA 34,153 26,232 30.20% 59,985 % on Revenues 15.2% 12.0% 13.3% EBITANR 28,621

29. Slide 29: Revenues Trend

    Revenues Trend  Continuous growth of ADC mainly thanks to investments of retailers in new advanced products Fixed Retail Scanners and Hand Held Readers  Two speed in North America: ADC driven by retailers while IA still suffering mainly due to a lack of main orders in postal segment  Remarkable g

30. Slide 30: Segment Reporting: GOP and EBITDA

    Segment Reporting: GOP and EBITDA GOP BY DIVISION EBITDA BY DIVISION €mln 109.1 €mln 103.4 34.2 30.7 76.1 26.2 65.8 19.7 30.4 27.2 12.5 2.6 7.0 5.9 11.2 1.9 1.5 2.3 0.9 0.8 ADC IA Informatics DL SpA Total ADC IA Informatics DL SpA Total Group Group 1H 2013 1H 2014 1H 2013 1H 2014 Gross Operating Mar

31. Slide 31: EBITANR: Actual vs Last Year

    EBITANR*: Actual vs Last Year €000 Exch rate on sales - 5,228 Exch rate on DCOGS + 2,935 Exch rate on Op Exp + 3,122 6,298 28,621 829 (3,123) 3,607 (655) 21,241 (2,979) 3,403 Other revenues + 143 Other variable costs - 951 Direct Cogs + 7,106 Vol. sales/Mix + 3,489 Service sales - 86 -1.3% on Revenu

32. Slide 32: Consolidated Balance Sheet

    Consolidated Balance Sheet €000 At 31/12/2013 At 30/06/2014 Intangible fixed assets 59,058 55,028 Goodwill 145,092 146,468 Tangible fixed assets 51,328 51,710 Non Consolidated investments 5,452 5,383 Other fixed assets 39,441 39,551 Total Fixed Assets 300,371 298,140 Net trade account receivables 69

33. Slide 33: Net Debt Analysis

    Net Debt Analysis €000 Acc. Receivable - 3,343 Tax payment - 1,833 Inventory - 6,642 V.A.T. - 1,264 Acc. Payable - 6,382 Other - 3,284 (97,007) 34,869 - ( 9,351) 12,115 (6,381) (86,047) ( 16,367) (3,925) Net Income + 15,244 Depreciation & Amortization + 8,307 Provision for bad debt + 482 Personnel &

34. Slide 34: Appendix

    | Appendix DATALOGIC

35. Slide 35: Stock and Governance

    Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (September 26th, 2014): 8.41 Euro Bloomberg Code: DAL IM Market Cap (September 26th, 2014): 491.5 M Euro Outstanding Shares: 58,446,491 Specialist: Intermonte SIM Share Par- Value: 0.52 Euro each Auditing Company: R

36. Slide 36: Management

    Management Romano Volta Chairman and Group CEO Jacopo Mazzolin Federica Lolli Sr. VP and CHRO General Counsel Giovanni Sgalambro Marco Rondelli CIO and Change CFO Mgmt AUTOMATIC DATA CAPTURE BUSINESS DEVELOPMENT INDUSTRIAL AUTOMATION (IA) INFORMATICS (ADC) IP Tech Datalogic ADC Datalogic IA Informat

37. Slide 37: Contacts

    Contacts IR Contacts Next Events CFO and IR Manager Marco Rondelli November 7th 2014 E-mail investor@datalogic.com Board of Directors to approve Q3 2014 results IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@datalogic.com Via Candini, 2 40012 Lippo di

38. Slide 38: 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

39. Slide 39: Thank you!

    Thank you! This presentation contains statements that are neither reported financial results nor other historical information. These statements are forward- looking statements. These forward-looking statements rely on a number of assumptions and are subject to a number of risks and uncertainties, ma

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