Slide 1: Virtual STAR Conference
Virtual STAR Conference 26 MAY 2020
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: Corporate Overview
Corporate Overview 3
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 1,200+ patents filed and more than 350 in
Slide 5: Over 45 years of Technological Innovation
Over 45 years of Technological Innovation EXPANSION ▪ Minec AB ▪ Laservall SpA ▪ Informatics Inc. NEW STRATEGY ▪ PSC Inc ▪ Set up new One EXPANSION ▪ Datasensor SpA 2012 Datalogic 1972 ▪ Escort Memory Systems 2001 ▪ Evolution Robotic 2015 ▪ New organization by Inc. Retail Inc. verticals ▪ IDWare mob
Slide 6: Solid long-term growth
Solid long-term growth Sales CAGR 2001-2019 +10% € mln 1000 16% 17% 16% 15% 14% 16% 17% 17% 16% 14% 14% 14% 14% 13% 12% 13% 13% 15% 900 10% 10% 800 6% 10% 10% ▪ A history of growth in 8% 8% 8% 8% 5% profitability 700 5% 6% 6% 6% 7% 4% 4% 5% 5% 606 631 612 0% ▪ Strong improvements across 600 1% 1% 2%
Slide 7: A Wide Geographical Footprint
A Wide Geographical Footprint 10 Manufacturing & Repair sites 11 R&D Centers, 3 DL Labs Direct presence in 28 countries Percent on Q1 2020 Revenues EMEAI 57.4% Americas 32% APAC 10.6% Data refer to YE 2019 except for revenue breakdown by Geographic area at Q1 2020 7
Slide 8: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (May 22, 2020): 10.40 Euro Bloomberg Code: DAL IM Market Cap (May 22, 2020): 608 mln Euro Outstanding Shares: 58,446,491 Auditing Company: Deloitte Share Par-Value: 0.52 Euro each DATALOGIC SHARE PERFORMANCE vs. IND
Slide 9: Strategy
Strategy 9
Slide 10: Total Addressable Market
Total Addressable Market TAM: DATALOGIC MKT SHARE ~ 14 bln USD • Fixed retail scanners Healthcare #1 WW: >35% market share Healthcare 4% T&L 12% • Stationary industrial scanners T&L #1 WW: >20% market share Retail • Handheld Scanners #3 WW: ≈ 20% market share Manufacturing Retail Manufacturing 25% 5
Slide 11: Our Strategy
OUR Strategy Objective Scope Advantage ▪ Grow above market ▪ Remain a product company ▪ Wide range of products average, while expanding with new emphasis on able to fulfill our profitability solutions to satisfy the Customers’ needs for both needs of End Users in the data collection and process foll
Slide 12: A wide range of products that is able to fulfill our customers' needs
A wide range of products that is able to fulfill our customers’ needs for both data collection and process automation Most complete offer of barcode readers: from retail to Complementary/Open doors products in industrial scanners, from hand held to mobile the MFG Industry Undisputed leadership on ba
Slide 13: Our products are key enablers of critical applications along our customers' supply chain
Our products are key enablers of critical applications along our customers’ supply chain Self-Shopping Mark & Read Dimensioning & Weighing Systems Complete Traceability Mark & Trace 13
Slide 14: Retail
Retail Datalogic Proposition ▪ We meet the needs of retailers globally, from the distribution centers, through check-out, to the customer’s home ▪ Market Leader along the Retail supply chain from 1974 with the first scanner ever sold to a grocery store in Troy, Ohio up to now with the innovative fri
Slide 15: Manufacturing
Manufacturing Datalogic Proposition ▪ Leader in traceability thanks to the most complete and performing offer of stationary industrial scanners ▪ Unique portfolio provider of smart, interconnected devices able to protect, identify, sense, check and mark ▪ Datalogic is providing multi-product portfol
Slide 16: Transportation & Logistics
Transportation & Logistics 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 Milan, to the recent contract with a main Euro
Slide 17: Healthcare
Healthcare 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 technology for battery recharge, and Green s
Slide 18: Recent New Product Launches and Innovation
Recent New Product Launches and Innovation Mobile Factory Automation T&L Other Products Gryphon 4500 AV 500 Digimarc Models Memor 10 PDA wirth Joya Touch A6 Matrix 120/220 with IMPACT 12.2 Software: Magellan MP Scan Engine With Megapixel Scan Digimarc and OPC UA focus on guidance and 1500i Engine tr
Slide 19: Key Growth and Strategic Drivers
Key Growth and Strategic Drivers ▪ Keep focus on all of our 4 verticals ▪ RTL ($ 4 bln): check out evolution, cross sell mobile, watch distribution centers carefully Industry ▪ MFG ($8 bln): expand into new sectors to offset automotive crisis ▪ T&L ($2 bln): cross sell – complete offer SIS, Mobile,
Slide 20: Financials & Outlook
Financials & Outlook 20
Slide 21: 2019 Financials
2019 Financials 21
Slide 22: 2019 Financial Highlights
2019 Financial Highlights ❑ Results in line with expectations despite tough ❑ Cash Generation with a free cash flow at 32.6 m€ in market conditions in an uncertain environment. FY2019. ❑ Growth in North America (+6.6%) in all industries, ❑ Net Cash position in line with last year excluding IFRS offs
Slide 23: 2019 Group Revenues by Segment
2019 Group Revenues by Segment Var % % on DL Business Revenues €m FY 2019 FY 2018 Constant FX vs. FY 2018 Channel Retail 265.7 278.0 (4.4%) (7.1%) 8.8% Manufacturing 157.4 169.9 (7.4%) (8.6%) Healthcare 3.5% Transportation & Logistics 75.0 68.6 9.5% 6.6% Healthcare 20.0 20.1 (0.3%) (3.2%) T&L Channe
Slide 24: 2019 Group Revenues by Geography
2019 Group Revenues by Geography % on Group Revenues LA APAC 2.6% Var % 11.0% €m FY 2019 FY 2018 Constant FX vs. FY 2018 EMEAI 309.6 324.8 (4.7%) (5.9%) North America 219.4 205.9 6.6% 1.5% APAC 67.4 83.8 (19.6%) (20.1%) EMEAI 50.5% Latin America 16.1 16.5 (2.5%) (4.3%) Total Datalogic 612.5 631.0 (2
Slide 25: FY 2019 P&L
FY 2019 P&L Variance Constant €m FY 2019 FY 2018 Reported FX ▪ Revenues down 2.9% to €612.5 m (-5.3% Net FX); Revenues 612.5 631.0 (2.9%) (5.3%) Gross Margin 293.1 306.0 ▪ Gross Margin at 47.9%, flat Net FX % on Revenues 47.9% 48.5% -0.6 pp +0.0 pp ▪ Operating expenses at €220.0 m: Operating expense
Slide 26: 2019 EBITDA: FY actual vs last year
2019 EBITDA: FY actual vs last year €m 105.5 0.7 95.0 4.8 3.7 5.8 (17.3) (1.1) (7.2) -3.4% on DL Business 2018 revenues* FY 2018 Price Volume Mix Productivity FX Structure SNS/INF FY 2019 16.7% on Group 15.5% on Group Revenues Revenues Positive Items Negative Items * Excluding Service and other non
Slide 27: 2019 Net Debt & Cash Flow Analysis: Dec'18 – Dec'19
2019 Net Debt & Cash Flow Analysis : Dec’18 – Dec’19 €m 95.0 (6.0) (38.0) (12.1) (3.3) (4.3) 23.8 23.4 (28.7) (3.0) 13.4 (10.1) NFP EBITDA Ch TWC Capex Taxes Financial Purchase Dividend Other NFP IFRS 16 NFP Dec 18 Charges Own Shares Payment Dec 19 NFP Impact Dec 19 excl. IFRS 16 27
Slide 28: Q1 2020 Updates
Q1 2020 Updates 28
Slide 29: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights ❑ SignificantCovid-19 impact on Revenue in ❑ Vitality index continue improving from 19.5% APAC, next to already anticipated phase out of in Q12019 to 22.2% in Q12020, mainly driven Retail and T&L projects in EMEAI and North by HHS and Mobile America ❑ Adj EBITDA mainly a
Slide 30: Covid-19 - Actions in a challenging environment
Covid-19 - Actions in a challenging environment ▪ Health and safety of our people is a priority. Sound health and safety protocols established for all facilities People ▪ Smart working established globally to the maximum extent possible ▪ Ensuring operations in production with highest health and saf
Slide 31: Ready for post Covid-19 challenges
Ready for post Covid-19 challenges Mobile Antimicrobial disinfectant-ready devices • E-commerce • Datalogic supports the fight against Coronavirus • T&L • Outer shell of our devices made of antimicrobial plastic: – repels pathogens and limits their infectious diffusion – resilient to withstand numer
Slide 32: Q1 2020 P&L
Q1 2020 P&L Variance Constant €m Q1 2020 Q1 2019 Reported FX ▪ Revenue -14,2% driven by large roll-outs in Q12019, Revenues T&L projects completion and overall Covid effect. 124.2 144.6 (14.2%) (15.0%) Gross Margin 58.0 70.2 ▪ Gross Margin at 46.7%, decrease mainly due to % on Revenues 46.7% 48.5% -
Slide 33: EBITDA Adj: actual vs last year
EBITDA Adj: actual vs last year €m R&D spending 21.6 offset by structure efficiency (2.1) (6.4) 1.0 0.1 -1.9% on DL (3.3) 7.3 Business 2019 (0.7) (2.9) revenues* Q1 2019 Price Volume Mix Productivity Structure SNS/INF FX/other Q1 2020 15.0% on Group 5.9% on Group Revenues Revenues Positive Items Neg
Slide 34: Q1 2020 Net Debt & Cash Flow Analysis
Q1 2020 Net Debt & Cash Flow Analysis €m 7.3 13.4 (18.0) (8.7) (4.4) (3.2) (2.5) (1.6) (3.3) (21.0) NFP Adj. Ch TWC Capex Taxes Financial Purchase Own Other ∆ IFRS 16 NFP Dec 19 EBITDA Charges Shares NFP Impact Mar 20 34
Slide 35: 2020 Outlook
2020 Outlook ▪ Given the current crisis relating to the Covid-19, and the timing of a possible recovery, the Group believes it is not yet possible to estimate the overall impact it will have on the full year. The evolution of the pandemic, the resolutions of authorities regarding lockdowns, as well
Slide 36: Contact
Contact IR CONTACTS NEXT EVENTS IR Manager June 4, 2020 Vincenza Colucci Shareholders’ Meeting 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.co