Slide 1: Italian Excellences 2024
ITALIAN EXCELLENCES 2024 OCTOBER 09TH,2024 INTERNAL Datalogic Confidential
Slide 2: Group Overview
GROUP OVERVIEW INTERNAL Datalogic Confidential
Slide 3: Datalogic at a glance
Datalogic at a glance Global technology leader in the data capture and industrial automation, in the Retail, Manufacturing, Transportation & Logistics, and Healthcare industries. Founded in 1972, listed on the Italian Stock Exchange since 2001. Retail Manufacturing Transportation & Logistics Healthc
Slide 4: Datalogic Group footprint
Datalogic Group footprint EMEAI 57.1% Americas 31.3% APAC 11.6% 13 Manufacturing & Repair sites 11 R&D Centers 48 Offices and Facilities in 29 countries % on H1 2024 revenues 4 INTERNAL Datalogic Confidential
Slide 5: 50+ Years of Expansion
50+ Years of Expansion NON CORE INNOVATION BUSINESS LISTING • Acquisition of EXPANSION DISPOSAL • Listed on the Multiware • Acquisition of FOUNDATION STAR segment of Photonics SA M.D. Micro • Sale of 100% • Established in the Italian Stock • Partnership with of Informatics Detectors SpA Bologna Exch
Slide 6: Our Aim, our Dream, our Beliefs
Our Aim, our Dream, our Beliefs “Shape the “We enable our future with intelligence customers to gain a and innovation.” competitive edge by offering the most advanced Data Capture and Industrial Automation products and solutions.” 6 INTERNAL Datalogic Confidential
Slide 7: Our Strategy
Our Strategy Objective Scope Advantage ▪ Become a billion-revenue ▪ Enhance hardware offer with ▪ Leverage on a wide portfolio of company in the long term software, driving efficiency in products and services to provide with increasing profitability Data Capture and Industrial Customers with innovat
Slide 8: Datalogic Group portfolio: a comprehensive offering across two major product platforms
Datalogic Group portfolio: a comprehensive offering across two major products platforms to better address different application needs across verticals INDUSTRIAL AUTOMATION Unattended processes DATA CAPTURE Attended processes Page 15 Copyright Datalogic 2023 – Confidential Proprietary Information 8
Slide 9: Strategy & Operating Model
STRATEGY & OPERATING MODEL INTERNAL Datalogic Confidential
Slide 10: Compelling long-term growth trends across all main Industries
Compelling long-term growth trends across all main Industries x % of DL business Main Sub-industries Growth market trends New self check-out including AI and MV to speed up operations, protecting retailers Grocery from loss and theft Retail Non-grocery Improve customer experience to increase in-stor
Slide 11: A strategy centered on our core identification offering as a solid foundation
A strategy which remains centered on our core identification offering as a solid foundation upon which to build a portfolio enhanced with complementary technologies and operating a solution ecosystem MARKET POSITIONING PORTFOLIO INNOVATION & TECHNOLOGY • Be the unique player with a • Protect and enh
Slide 12: The four pillars of Datalogic growth
The four pillars of Datalogic growth 1 TOP LINE 2 PROFITABILITY 3 SUSTAINABILITY 4 M&A 12 INTERNAL Datalogic Confidential
Slide 13: Protect leadership in key identification markets, whilst penetrating mobile and sensors
1. TOP LINE Protect leadership in key identification markets, whilst penetrating mobile and sensors segments Worldwide leader Market size CAGR (2023 est.), B€ ’23-’27 Main Industries Main priorities • Retail • Become a relevant player in Mobile Market • Manufacturing • Increase penetration of Retail
Slide 14: Strong focus on efficiencies to drive structural profitability enhancement
2. PROFITABILITY Strong focus on efficiencies to drive structural profitability enhancement Main Goal Priorities Actions Increase Industrial Manufacturing & Supply • Industrial & distribution footprint optimization INDUSTRIAL Profitability YoY Chain • Procurement optimization - costs & flexibility M
Slide 15: Sustainability compliance road map
3. SUSTAINABILITY Sustainability compliance road map FY 2023 FY 2024 FY 2025 • New Double Materiality Analysis: • Company Sustainability Plan and • Company Sustainability Plan 10 material topics identified setting of long-term Sustainability implementation and Goal through active involvement of Goal
Slide 16: New Sustainable Life Cycle Assessment Framework
An example of ongoing strategic sustainability initiatives: 3. SUSTAINABILITY The new Sustainable “Life Cycle Assessment” Framework Raw material Component and Design and acquisitions packaging Distribution Use End of Life Assembly and processing production Areas of Focus 1. Partner with 5. Optimize
Slide 17: Anticipation of European Taxonomy alignment on a voluntary basis
Anticipation of European Taxonomy alignment on a voluntary 3. SUSTAINABILITY basis Datalogic revenues, investments and operative expenses are considered «green» and deemed eligible mainly to the «Circular Economy Transition» objective Eligible and Aligned Eligible but not Aligned Not Eligible 3% 1%
Slide 18: Main ESG Accomplishments in 2023
3. SUSTAINABILITY Main ESG Accomplishments in 2023 4 65 75% ISO for environment, worker NPS score of the new direct material safety, quality and information (+10 points more than 2022) suppliers evaluated also based security on ESG criteria -11% 66% 120 reduction in energy of the value of the packag
Slide 19: Structured M&A Activity to Foster Group Strategy
4. M&A Structured M&A Activity to Foster Group Strategy M&A Priorities M&A Process Consolidate underpenetrated Preliminary Scouting Execution Integration Product screening Segments - Industrial Automation: Sensors, Safety, Smart targets ‘’in- based on involving of acquired Sensors/Cameras scope’’ KP
Slide 20: Sound balance sheet and structural cash generation to leverage growth
Sound balance sheet and structural cash generation to leverage growth Cash Flows – Last 5 years cumulated Cumulative Operating Cash Flows before Capex: Cumulative Capital Allocation: • Structural operating cash €282M €329M flow generation year 7 34 after year 22 37 369 165 • + €280m Cumulative Cash
Slide 21: Financials
FINANCIALS DATALOGIC
Slide 22: H1 2024 & Q2 2024 Results
H1 2024 & Q2 2024 Results Q2 2024 Results, €m GOM Adj. EBITDA NET RESULT REVENUES €56.7 €13.3 €3.2 €133.3 42.6% 10.0% 2.4% -7.1% (+0.6 pp) (-2.9 pp) (-3.8 pp) H1 2024 Results, €m GOM Adj. EBITDA NET RESULT REVENUES €99.5 €15.5 €9.3 €244.6 40.7% 6.3% 3.8% -15.3% (-0.7 pp) (-4.6 pp) (-0.4 pp) Net Debt
Slide 23: Group Revenues by Geography and Market Segment
Group Revenues by Geography and Market Segment EMEAI AMERICAS APAC Total Datalogic €m H1 2023 H1 2023 H1 2023 H1 2023 H1 2024 Var % H1 2024 Var % H1 2024 Var % H1 2024 Var % restated* restated* restated* restated* Data Capture 82.8 101.1 (18.0%) 59.5 57.3 3.9% 17.2 19.5 (12.1%) 159.5 177.9 (10.3%) I
Slide 24: New Products Launches and Innovation
New Products Launches and Innovation Mobile Fixed Retail Scanner Stationary Industrial Scanner Memor 30/35 Family MAGELLAN 900i MATRIX 220 R&D cash out at 13.2%, +2.5 bps vs H1 2023 (10.6%). Investments in R&D continue in line with our plan to launch new products. Launched in Q2 2024 the first model
Slide 25: H1 2024 P&L
H1 2024 P&L H1 2023 €m H1 2024 Var % restated* Revenues 244.6 288.9 (15.3%) • Gross Margin at 40.7% (-0.7 pp YoY) affected by Gross Margin 99.5 119.6 volumes contraction and negative price/mix, partially % on Revenues 40.7% 41.4% -0.7 pp offset by positive productivity Operating expenses (99.4) (104
Slide 26: EBITDA Adj: actual vs last year
EBITDA Adj: actual vs last year €m Positive Items Negative Items 31.5 (11.0) (5.0) 15.5 (0.2) 3.6 (7.0) 3.7 H1 2023 Volume Price Mix Productivity Structure FX Effect & Others H1 2024 10.9% on Group 6.3% on Group Revenues Revenues 26
Slide 27: Net Debt & Cash Flow Analysis: Dec'23 – Jun'24
Net Debt & Cash Flow Analysis : Dec’23 – Jun’24 €m Positive Items Negative Items 0.3 (11.8) (2.8) 27.0 15.5 (9.9) (2.6) (35.3) (2.9) (1.0) NFP Dec 23 EBITDA Adj. Ch. TWC Net Taxes Net Financial Others M&A Others, not NFP Jun 24 Investment Charges operating 27
Slide 28: Backup
BACKUP DATALOGIC
Slide 29: FY 2023 P&L
FY 2023 P&L FY 2022 €m FY 2023 Var % restated* • Gross Margin at 41.8% (+1.7 pp YoY) thanks to positive Revenues 536.6 654.6 (18.0%) Gross Margin 224.4 262.5 pricing/mix and productivity offsetting negative % on Revenues 41.8% 40.1% +1.7 pp volumes Operating expenses (207.5) (213.4) % on Revenues (3
Slide 30: Sale of 100% share capital in Informatics Holdings, Inc.
Sale of 100% share capital in Informatics Holdings, Inc. Informatics is a stand-alone company actively engaged in the non-core business of marketing and distributing software products and solutions tailored for small and medium-sized companies mainly in the US. The company was acquired in 2005 and i
Slide 31: Sustainability: the 10 material topics and relevant existing KPIs
Sustainability: the 10 material topics and relevant existing KPIs Research, development and innovation Patents number; New Prod % Rev; R&D cash-out % on Rev; R&D employees Product quality and safety % defects on products; Nr. of non-conformities associated to products Responsible Supply Chain Nr. au
Slide 32: Contacts
Contacts IR CONTACTS NEXT EVENTS IR Manager November 07, 2024 Alessandro D’Aniello 9M 2024 Results Tel. +39 051 3147109 ir@datalogic.com Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy IR Advisor Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 DATALOGIC ON LINE vincenza.c
Slide 33: 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, many