Datalogic S.p.a. · MIL:DAL
Datalogic — STAR Conference London 2018
36 slides from Datalogic's conference presentation, Oct 24, 2018
Slide 1: STAR Conference London 24 October 2018
STAR Conference London 24 October 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 SDATALOGIC
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. 3,025 55% 24% 21% 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 53% NORTH AMERICA 30% APAC 13% LATIN AMERICA 4% Direct presence in 30 countries 8 Manufacturing Sites 11 R&D Centers 3 DL LABS Note: Breakdown by area based on 1H 2018 revenues 6 6
Slide 7: Stock and Governance
Stock and Governance Market Segment: STAR MTA Ticker: DAL Reuters Code: DAL.MI Price (October 19, 2018): 25.50 Euro Bloomberg Code: DAL IM Market Cap (October 19, 2018): 1.49 B Euro Outstanding Shares: 58,446,491 Auditing Company: EY Share Par-Value: 0.52 Euro each DATALOGIC PRICE PERFORMANCE SHAREH
Slide 8: Strategy and Outlook
Strategy and Outlook DATALOGIC
Slide 9: A clear strategy
A clear strategy THE OBJECTIVE THE SCOPE THE ADVANTAGE Keep constantly Remain a product company Moving from a Product to a growing above with new emphasis on Customer-Centric company, market average, solutions to satisfly the leveraging on our wide while significantly needs range of products, improv
Slide 10: 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 11: A New Organization by Verticals…
A New Organization by Verticals… Note: Figures represent the Revenues breakdown of the Datalogic division at H12018 www.datalogic.com 11 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 12: …with a Wide and Complementary Offer
…with a Wide and Complementary Offer www.datalogic.com 12 Copyright Datalogic 2017 – Confidential & Proprietary Information
Slide 13: 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 13
Slide 14: We play in a growing market
We play in a growing market 2016: 1.86 trillion U SD 2016: 1.9 billion U SD 2016: 3.9 trillion U SD 2021: 4.48 trillion U SD 2021: 22.4 billion U SD 2025: 11.1 trillion U SD Retail Warehousing and e-Commerce Logistics Robotics Internet of Things Datalogic products and solutions are essential for the
Slide 15: Retail
Retail Bringing offline and online together DATALOGIC PROPOSITION FROM WAREHOUSE TO CHECKOUT ▪ We satisfy globally the Retailers business needs, from Distribution Center to Check Out and Shoppers’ Home. ▪ Market Leader along the Retail supply chain from 1974 with the first scanner in Troy, Ohio to 2
Slide 16: Retail
Retail Bringing offline and online together DATALOGIC RESULTS ▪ H1 2018 Revenues €141.6 mln (+2.5% YoY, +8.6% ex Forex), 50% of DL Division Revenues ▪ Double-digit growth in North America: 20% at constant forex. Steady growth in EMEA up +6% at constant Forex ▪ Big projects won in the US with Tier 1
Slide 17: Manufacturing
Manufacturing The factory of the future DATALOGIC PROPOSITION ▪ Unique portfolio provider of smart, interconnected devices able to protect, identify, sense, check and mark. ▪ Datalogic is providing multi-product portfolio to serve all the major manufacturing clients: Automotive, Food and Beverage, A
Slide 18: Manufacturing
Manufacturing The factory of the future DATALOGIC RESULTS ▪ H1 2018 Revenues €90.0 mln (+16.3% YoY, 19.7% ex Forex), 32% of DL Division Revenues ▪ Positive performance in all Geo Areas lead by China and Korea (+56%), N. America (+13% and above 25% in Q2) and EMEA (+11%) at constant Forex ▪ China: re
Slide 19: Transportation & Logistics
Transportation & Logistics End to end visibility and real time tracking 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 i
Slide 20: Transportation & Logistics
Transportation & Logistics End to end visibility and real time tracking DATALOGIC RESULTS ▪ H1 2018 Revenues €31.1 mln (+21.0% YoY, 27.3% Ex Forex), 11% of DL Division’ Revenues ▪ Growing double digits in EMEA, North America, and China & Korea: +28%, +32%, and +35% at constant Forex, respectively ▪
Slide 21: Healthcare
Healthcare Meet regulations and Higher Patient Safety 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
Slide 22: Healthcare
Healthcare Meet regulations and Higher Patient Safety DATALOGIC RESULTS ▪ H1 2018 Revenues €8.9 mln (-45.5% YoY, -42.0% ex Forex), 3% of DL Division’ Revenues ▪ Decline in H1 due to the tough comparison with H1 2017, where major deals with 2 relevant US hospital chains occurred ▪ Strong expectation
Slide 23: 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 24: Technologies and Products
Technologies and Products 24
Slide 25: 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 ▪ 11 Research & Development Centers ▪ 470 R&D resources, more than 450 Engine
Slide 26: 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 27: 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 28: H1 2018 Product Launches
H1 2018 Product Launches SH15 / SH21 MARVIS MARK READ VERIFY BLACKLINE COMPUTERS INTEGRATED SOLUTION STATIONARY LASER SCANNER 2D DECODER SCAN ENGINE LANEHAWK LH5000 – SEAHAWK STAR DONGLE – BOBTAIL SG4 FIELDBUS - ADVANCED MODEL FALCON X4 SOTI MOBICONTROL ENTERPRISE MOBILITY JOYA TOUCH WITH ANDROID 7.
Slide 29: Financials
Financials ©DATALOGIC SI
Slide 30: Investing R&D and S&D, whilst maintaining sound profitability
Investing R&D and S&D, whilst maintaining sound profitability 1H2018 1H2017 Var% ▪ Revenues up 2.6% to €307.0 m €m (+7.9% at constant exchange rate) Revenues 307.0 299.3 2.6% ▪ GOM showing steady improving trend at 48.7% (around +120 bps Gross Operating Margin 149.4 142.3 5.1% vs 1H 2017) %on Revenu
Slide 31: Group Revenues by country
Group Revenues by country REVENUES BY GEOGRAPHIC AREA ▪ Sound growth net of forex Var% €m H1 2018 H1 2017 Var% ▪ Continuous growth in Ex forex APAC driven by China and EMEA 164.5 158.7 3.7% 4.8% Korea (+27.3 and +34.3% North America 91.8 95.0 (3.4%) 7.7% net of forex) Latin America 6.6 7.3 (10.6%) 0
Slide 32: Group Revenues & EBITDA by division
Group Revenues & EBITDA by division REVENUES BY DIVISION INF €m 1H2018 1H2017 Var% SNS 3% 4% Datalogic Business 284.3 279.2 1.8% Solution Net Systems 14.2 10.6 34.5% Informatics 9.7 11.2 (13.3%) Adjustments (1.3) (1.7) 24.3% Total Revenues 307.0 299.3 2.6% Datalogic 93% ▪ Datalogic driven at constan
Slide 33: EBITDA: actual vs last year
EBITDA: actual vs last year €m 16.6% on 17.3 % on Group Group Revenues Revenues 4.1 0.7 1.1 6.7 5.9 50.8 51.8 1.4 (14.2) (6.7) -2.4% on DL Business 2018 revenues* 1H 2017 Price Volume Mix Service COGS FX Structure SNS/INF 1H 2018 Positive Items Negative Items * Excluding GCO and Service 33
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet €m Dec 2017 Jun 2018 Dec 2017 Jun 2018 Net Financial Total Fixed Assets 347.9 351.3 (30.1) (13.3) Position Trade receivables 85.8 95.9 % on 12m rolling sales 14.2% 15.6% Inventories 85.9 102.3 % on 12m rolling sales 14.2% 16.7% Trade payables (110.3) (126.1) Net Equity 353
Slide 35: Net Debt Analysis: Dec’17 – Jun’18
Net Debt Analysis: Dec’17 – Jun’18 Acc. Receivable (10.0) €m Inventory (16.4) Acc. Payable 15.8 50.8 (10.6) (7.2) (7.3) (3.1) 30.1 (10.7) -2.4% on 0.1 13.3 Revenues (28.9) Net Debt EBITDA Ch TWC Capex Taxes Net Financial Purchase Dividend Other Net Debt Dec 17 Charges Own Shares Payment Jun 18 Of wh
Slide 36: Contact
Contact IR CONTACTS NEXT EVENTS IR Manager November 13th, 2018 Vincenza Colucci 9M results 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.com Vi