Datalogic S.p.a. · MIL:DAL

Datalogic — 9M 2016 Earnings Presentation

20 slides from Datalogic's earnings presentation, Nov 11, 2016

1. Slide 1: 9M 2016 Conference Call

   9M 2016 Conference Call November 11th, 2016

2. Slide 2: Agenda

   Agenda = 9M 2016 = Outlook eee ae ATLL | www dave loslc.com 2 SDATALOGIC THE VISION IS YOURS

3. Slide 3: 9M 2016

   9M 2016 DATALOGIC

4. Slide 4: 3Q 2016 Key Factors

   3Q 2016 Key Factors  Continuous focus on innovation: new launches of breakthrough products in the quarter - Joya Touch and Shop Evolution 7 FOCUS ON CLIENT  Growth of Non Food Retailers in US, T&L in Europe and FA in China  20.4% of revenues comes from new products*  Double digit growth in Europ

5. Slide 5: Highlights 3Q 2016

   Highlights 3Q 2016  +4.6% YoY to 139.9 mln Euro (+4.8% at constant exchange rate) Revenues mainly thanks to Europe, both in ADC and IA, and to North and South America in ADC  Some slowdown in result of US due to political uncertainties  +15.6% YoY to 21.7 mln Euro thanks to strong operating cost

6. Slide 6: 3Q 2016: performance above historical average

   3Q 2016: performance above historical average REVENUES € mln 143.8 146.5 135.2 133.8 135.4 139.9 116.0 124.5 122.3 115.8 108.2 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 EBITDA EBITDA margin % € mln 26.1 20.7 21.7 18.7 17.9 18.6 18.8 18.8 17.4 15.5 15.7 17.8% 16.1% 15.4% 15.5%

7. Slide 7: 9M 2016 Profit and Loss

   9M 2016 Profit and Loss € 000 9M2016 9M2015 Var % Revenues 421,753 100.0% 391,295 100.0% 7.8% COGS (227,269) (53.9%) (208,546) (53.3%) 9.0% Gross Operating Margin 194,484 46.1% 182,749 46.7% 6.4% Other Revenues 2,321 0.6% 1,483 0.4% 56.5% R&D (36,636) (8.7%) (34,764) (8.9%) 5.4% Distribution Costs (

8. Slide 8: Revenues Trend by Division

   Revenues Trend by Division  ADC Division: +9.3% to 292.7 million Euro REVENUES BY DIVISION (%)  POS check out fixed scanners with the Informatics new imaging technology is in roll out 4% phase within major retailers  The new DL-Axist is pushing sales of IA 27% mobile computers  The new Joya Touc

9. Slide 9: Revenues Trend by Country

   Revenues Trend by Country REVENUES BY GEOGRAPHIC AREA  Europe continues to generate robust growth in particular in IA* (+13.4%) and €mln 9M 2016 9M 2015 Var % in ADC (+8.6%), Europe 216.2 197.4 9.5% North America 126.4 117.1 8.0%  North America at two speeds: double Asia Pacific 51.4 52.8 (2.5%) d

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

    FY Segment Reporting: GOP and EBITDA GOP BY DIVISION EBITDA* BY DIVISION € mln € mln 71.9 66.6 182.7 194.5 59.8 53.1 127.0 137.4 46.6 49.8 10.0 8.1 4.6 6.9 (0.9) (0.8) 0.3 (0.9) (11.6) (11.3) ADC IA Informatics Corporate Total Group ADC IA Informatics Corporate Total Group 9M2015 9M2016 9M2015 9M201

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 76.3 36.6 34.8 29.6 58.8 23.7 47.1 38.0 12.413.7 29.0 21.3 0.8 1.1 (2.1) (7.8) 2.8 3.7 (3.3) (3.5) ADC IA Informatics Corporate Total Group ADC IA Informatics Corporate Total Group 9M2015 9M2016 9M2015 9M2016 € mln € mln R

12. Slide 12: EBITDA*: Actual vs Last Year

    EBITDA*: Actual vs Last Year Vol. sales/Mix 28,1 Negative Items Service sales 1.2 Positive Items € mln 29.3 1.0 66.6 0.9 (0.1) (0.2) (3.1) 53.1 Of which EBITDA EBITDA (14.3) Materials 0.7 13.6% 15.8% Labour 0.6 Devaluation (0.8) Warr Cost & Prov (1.3) Price Erosion: (2.9%) on Tot Rev One shot market

13. Slide 13: Consolidated Balance Sheet at 30.09.2016

    Consolidated Balance Sheet at 30.09.2016 TOTAL ASSETS EQUITY AND NFP € mln Other Assets 36.1 Trade Working 111.9 Other Liability 76.3 Capital 37.6 Net Financial Position Total Fixed 317.6 Equity 354.7 Assets 13

14. Slide 14: Net Debt Analysis: Dec '15 – Sept '16

    Net Debt Analysis: Dec ‘15 – Sept’16 € mln LT MIP cash out (4.7) Negative Cash flow Acc. Receivable (3.9) Reserves changes (0.3) Positive Cash Flow Inventory (20.9) Other investments 0.5 Acc. Payable (15.0) (4.5) (37.6) (14.5) (0.4) (21.0) 64.1 2.2% on (12.3) revenues (9.2) (39.8) Net Debt Operating

15. Slide 15: ADC new products: Mobile Computer- Store Automation

    ADC new products: Mobile Computer- Store Automation Joya Touch Shopevolution 7 Middleware Multi-purpose device for retail applications. Self-shopping software platform.  Multi-purpose device: handheld or  Cloud-based Multi-store Support pistol-grip  Smartphones Android and iOS  Wireless Charging

16. Slide 16: IA new products

    IA new products Identification WebSentinel PLUS Monitor and information collector for Factory Automation and Transportation and Logistics applications. Safety and Sensors S65-M Long Range Background Suppressor for Factory Automation mainly for Packaging applications Safety and Sensors TL46 Low jitte

17. Slide 17: Outlook

    Outlook DATALOGIC

18. Slide 18: 2016 Outlook

    2016 Outlook  Expected 2016 revenues almost in line with 9 months growth trend.  R&D investment up to 9.0% of revenues to keep the innovation leadership in the market  Strong Operating Cost control and reduction of G&A  Maintain Strong Cash Generation 18

19. Slide 19: Contact

    Contact IR CONTACTS DATALOGIC ON LINE IR Manager www.datalogic.com Vincenza Colucci 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 Via Candini, 2 40012 Lippo

20. Slide 20: Datalogic S.p.A. Via Candini, 2 40012 Lippo di Calderara di Reno

    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 of which

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