Datalogic S.p.a. · MIL:DAL

Datalogic — FY2014 Earnings Presentation

19 slides from Datalogic's earnings presentation, Mar 9, 2015

1. Slide 1: 2014 Results Conference Call

   2014 Results Conference Call 9th March, 2015

2. Slide 2: Agenda

   Agenda  2014 Results  Outlook 2

3. Slide 3: 2014 Results

   2014 Results SDATALOGIC

4. Slide 4: 2014 Key Factors

   2014 Key Factors  Anticipate clients’ needs offering new products to improve their efficiency and productivity FOCUS ON CLIENT  Focus on innovation: 25 new products launched  21% of revenues comes form new products  Opening of new branches in Turkey and Brazil  Opening of new ADC plant in Brazi

5. Slide 5: Q4 2014 Highlights

   Q4 2014 Highlights  Sales revenues up +3.8% to 124.5 million Euro in 4Q2014 vs 120.0 million Euro in 4Q2013  Gross Operating Margin continues improving from 46.5% to 48.3% on revenues  EBITDA up 4% to 17.4 million Euro thanks to cost control and notwithstanding R&D investments increase to 13.3 mi

6. Slide 6: 2014 Highlights

   2014 Highlights  Sales growth driven by ADC +9.2% and IA (ex System) +3,3%, BU Systems still suffering by the postal cycle  Further improvement of the Gross Operating Margin, from 47.2% to 48.6%, and EBITDA Margin, from 13.3% to 14.9% as result of cost control and operating leverage  R&D costs +

7. Slide 7: FY 2014 Profit and Loss

   FY 2014 Profit and Loss €000 FY2013 FY2014 Var % Revenues 450,737 100.0% 464,546 100.0% 3.1% COGS (238,133) (52.8%) (238,987) (51.4%) Gross Operating Profit 212,604 47.2% 225,559 48.6% 6.1% Other revenues 1,974 0.4% 2,239 0.5% R&D (35,614) (7.9%) (43,108) (9.3%) Distribution Costs (84,962) (18.8%) (

8. Slide 8: Revenues Trend by Division

   Revenues Trend by Division  ADC Division continues to outperform REVENUES BY DIVISION (%) mainly thanks to the introduction of new technologically-advanced products like POS 2D scanner and Presentation scanner 6%  Significant trend reversal in 4Q in 28% Industrial Automation, driven by the launch

9. Slide 9: Revenues Trend by Geographic Area

   Revenues Trend by Geographic Area REVENUES BY GEOGRAPHIC AREA  Europe/Italy growth primarily driven by €000 2013 2014 Var % ADC two digits growth Italy 38.040 44.489 17,0% Europe 183.810 197.846 7,6%  Two speed in North America: ADC driven by Retail while IA still suffering North America 143.876 1

10. Slide 10: FY Segment Reporting: GOP and EBITDA

    FY Segment Reporting: GOP and EBITDA GOP BY DIVISION EBITDA BY DIVISION €mln €mln 225.6 69.4 212.6 66.1 60.0 157.2 50.4 138.7 60.6 56.7 8.0 13.1 11.8 5.8 -0.1 2.5 -0.9 -3.7 0.2 1.3 ADC IA Informatics DL SpA Total Group ADC IA Informatics DL SpA Total Group 2013 2014 2013 2014 Gross Operating Margin

11. Slide 11: FY Segment Reporting: R&D and TWC

    FY Segment Reporting: R&D and TWC R&D BY DIVISION TWC BY DIVISION €mln €mln 40.5 43.1 38.9 35.6 30.2 23.2 21.3 17.9 20.5 20.3 12.9 14.7 13.4 7.5 2.3 3.3 0.9 0.8 -4.3 -4.1 ADC IA Informatics Business Dev Total Group ADC IA Informatics DL SpA Total Group 2013 2014 2013 2014 TWC/Annualized R&D/Revenues

12. Slide 12: EBITANR: Actual vs Last Year

    EBITANR: Actual vs Last Year Other revenues + 264 (€/000) Other variable costs - 256 Vol. sales/Mix + 3,590 Direct Cogs + 10,228 Service sales + 423 -1.8% on Revenues Mainly R&D costs at 9.3% on revenues (*) Ordinary Operating Profit before non recurring costs/revenues and amortization of intangible

13. Slide 13: Consolidated Balance Sheet at 31.12.2014

    Consolidated Balance Sheet at 31.12.2014 €000 At 31/12/2013 At 31/12/2014 Intangible fixed assets 59,058 57,027 Goodwill 145,092 164,412 Tangible fixed assets 51,328 57,157 Non Consolidated investments 5,452 5,289 Other fixed assets 39,441 42,348 Total Fixed Assets 300,371 326,233 Net trade account

14. Slide 14: Financial resources for the growth

    Financial resources for the growth  23% net debt to Equity ratio SOLID  0.8x net debt to Ebitda ratio CAPITAL STRUCTURE  Generated around 67 million Euro net operating EXCELLENT CASH FLOW cash flow from operation during 2014 GENERATION  Medium-term debt refinancing on February 2015 FAVOURABLE fo

15. Slide 15: Net Debt Analysis

    Net Debt Analysis (€/000) Net Income + 30,857 Depreciation & Amortization + 16,917 Provision for bad debt + 505 Personnel & admin costs accrual + 6,633 LTMIP accrual + 2,166 Tax accrual + 8,322 Restructuring costs accrual + 3,775 Tax payment - 7,009 Acc. Receivable - 736 V.A.T. - 1,008 Inventory - 8

16. Slide 16: Outlook

    Outlook SDATALOGIC

17. Slide 17: Outlook for 2015

    Outlook for 2015  ADC confirms to be the driver of growth thanks to:  the launch of new technologically advanced products  the retailers’ new investment phase  Expected recovery in Industrial Automation from second half of 2015 thanks to the sales force reorganisation by verticals in US  Strong

18. Slide 18: Contacts

    Contacts IR CONTACTS NEXT EVENTS CFO and IR Manager March 24-25th , 2015 Sergio Borgheresi STAR Conference Milan E-mail investor@datalogic.com April 28th, 2015 IR Assistant Ordinary Shareholders’ Meeting Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@datalogic.com

19. Slide 19: 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

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