Datalogic S.p.a. · MIL:DAL

Datalogic — STAR Conference 2011 - Milan

56 slides from Datalogic's conference presentation, Mar 23, 2011

  1. Slide 1: Datalogic Group - STAR Conference 2011 Milan

    Datalogic Group STAR Conference 2011 – Milan March 23rd, 2011 © Copyright Datalogic 2007-2011

  2. 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

  3. Slide 3: The Group, Strategic Guidelines, Financial Data, Appendix

    THE GROUP STRATEGIC GUIDELINES FINANCIAL DATA APPENDIX © Copyright Datalogic 2007-2011 3

  4. Slide 4: Bringing the Future into Daily Life

    Bringing the Future into Daily Life © Copyright Datalogic 2007-2011 4

  5. Slide 5: Global applications: Paris airport

    Global applications, at any given moment Paris, France 3.00 p.m. over 53 million passengers and their baggage are handled each year in the Roissy Charles de Gaulle airport, a challenge won for our identification solutions © Copyright Datalogic 2007-2011 5

  6. Slide 6: Global applications: Rome airport

    Global applications, at any given moment Rome, Italy 10.00 a.m. over 33 million passengers a year and their baggage are handled by a baggage tracking system at Fiumicino Airport, a challenge won for our identification solutions © Copyright Datalogic 2007-2011 6

  7. Slide 7: Global applications: Canada Post

    Global applications, at any given moment Toronto, Ontario, Canada 9.00 a.m. over 10 billion letters and packages are delivered annually to 31 million Canadians by Canada Post, excellent performance for our scanners and camera systems © Copyright Datalogic 2007-2011 7

  8. Slide 8: Global applications: USPS

    Global applications, at any given moment 9 major Cities in the U.S.A. 3.00 p.m. over 360,000 trays per day are processed by a state-of-the-art system at USPS (United States Postal Service), excellent performance for our 2D Imagers © Copyright Datalogic 2007-2011 8

  9. Slide 9: Global applications: Isle of Man post office

    Global applications, at any given moment Isle of Man, 11.00 a.m. several deliveries on behalf of several major third party parcel carriers are made by the Isle of Man post office every day, our industrial PDAs allow all delivery information to be accessed in real time, streamlining the delivery proc

  10. Slide 10: Global applications: Milan hospital

    Global applications, at any given moment Milano, Italy 11.00 p.m. no more baby swapping at the “Vittore Buzzi” Children’s Hospital that has chosen professional PDAs to read RFID wristbands and ensure that every mom gets her own baby, a challenge won for our mobile computers © Copyright Datalogic 200

  11. Slide 11: Global applications: Singapore Grand Prix

    Global applications, at any given moment Marina Bay, Singapore 6.00 p.m. the 2010 Formula 1 Singapore Grand Prix, with its signature mix of lights, glamour, and non-stop action, unique features of our mobile computers handle over 100,000 spectators during the event © Copyright Datalogic 2007-2011 11

  12. Slide 12: Global applications: Dubai jewellery

    Global applications, at any given moment Dubai, United Arab Emirates 5.00 p.m. hundreds of precious jewels are made with the help of our technical solutions by means of our laser technology, making laser engravings, “sand-blasting” effects, and colour markings © Copyright Datalogic 2007-2011 12

  13. Slide 13: Global applications: Spain logistics

    Global applications, at any given moment Jijona, Alicante, Spain 3.00 p.m. every 20 minutes 33 pallets are loaded onto trucks in the shipping area of a consumer goods corporation, 0% error margin, thanks to our RFID tags © Copyright Datalogic 2007-2011 13

  14. Slide 14: Global applications: Mexico automotive

    Global applications, at any given moment Cuautitlan, Mexico 8.00 a.m. 400,000 trucks and cars are produced each year in one of the largest facilities of an American automotive corporation, just-in-time production method is supported by our RFID products © Copyright Datalogic 2007-2011 14

  15. Slide 15: Global applications: Campbell Soup

    Global applications, at any given moment Sacramento, California 12.00 a.m. no more missing labels for 8 million food items per day in one of the major food companies, Campbell Soup, a challenge won by our identification solutions © Copyright Datalogic 2007-2011 15

  16. Slide 16: Global applications: Sweden warehouse

    Global applications, at any given moment Älmhult, Sweden 3.00 p.m. 180,000 cubic meters is the storage volume of the world’s largest warehouse of a famous Swedish furniture retailer, this, and its furniture stores all over the world result in success for our industrial handheld readers, scanners and

  17. Slide 17: Global applications: New Jersey supermarket

    Global applications, at any given moment Carteret, New Jersey, U.S.A. 9.00 a.m. 24 hours a day, 7 days a week in over 140 stores is the service offered by one of the leading supermarket retailers of the nation, an efficient and effective front-end system with our POS bar code scanners © Copyright Da

  18. Slide 18: Global applications: Cincinnati retail

    Global applications, at any given moment Cincinnati, Ohio, U.S.A. 9.00 a.m. over 2,400 stores in 32 States make up one of the United States’ largest retail food companies, our customized solution allows scanning and security tag deactivation in one motion © Copyright Datalogic 2007-2011 18

  19. Slide 19: Global applications: Saint Tropez

    Global applications, at any given moment Saint Tropez, France 12.00 a.m. over 100 Casino Group stores use the Shopevolution self-shopping system Shopevolution helps retailers increase sales and decrease TCO © Copyright Datalogic 2007-2011 19

  20. Slide 20: Global applications: Los Angeles LaneHawk

    Global applications, at any given moment Los Angeles, California 3.00 p.m. scanning packaged goods, without having to see the barcode, happens over a million times a day with deployment of the LaneHawk system in grocery stores, reducing front end shrink and increasing store profits © Copyright Datal

  21. Slide 21: Investment Highlights

    Investment Highlights  Worldwide leader in the Automatic Data Capture (ADC) and Industrial Automation (IA) markets  Clear vision and strong commitment to create value  Solid financial structure and strong cash generation to sustain future growth  Innovation and Research to beat the uncertain mar

  22. Slide 22: Datalogic at a Glance

    Datalogic at a Glance  World-class producer of bar code readers, data collection mobile computers, RFID and vision systems  Datalogic offers innovative solutions for a comprehensive range of applications in the manufacturing, retail, transportation & logistics markets  2010 Revenues at €393M of w

  23. Slide 23: A History of Growth

    A History of Growth… Acquisition of Informatics Inc. (TX, U.S.A.) Acquisition of Evolution Robotics Retail, USA Acquisition of PSC Inc. (OR, U.S.A.) Listing on the Milan Acquisition of Laservall Completed transformation into Stock Exchange SpA (AO, I) 3 divisions: Scanning, Mobile, and Automation Ac

  24. Slide 24: With a Wide Geographical Footprint

    …with a Wide Geographical Footprint 2010 REVENUES – TOTAL €393M - BREAKDOWN BY AREA EUROPE 40% NORTH AMERICA 29% ITALY 11% APAC 13% ROW 7% Direct presence in 30 countries worldwide 7 Manufacturing Plants 9 R&D Centers © Copyright Datalogic 2007-2011 24

  25. Slide 25: Datalogic Group

    Datalogic Group AUTOMATIC DATA CAPTURE (ADC) MARKET INDUSTRIAL AUTOMATION MARKET BUSINESS DEVELOPMENT Datalogic Scanning Datalogic Mobile Datalogic Automation Business Development HQ Eugene, OR, USA HQ Bologna, Italy HQ Bologna, Italy HQ Bologna, Italy B. Parnell - CEO B. Parnell - CEO G. P. Fedrigo

  26. Slide 26: Leveraging strong commercial partnerships

    …leveraging strong …to better serve commercial Global Clients partnerships…  More than 1,000 partners worldwide  Longstanding relations with the biggest retailers, couriers and automotive manufacturers in the world  Over 360 installations of Self Shopping in Europe  Over 1,000 reading stations i

  27. Slide 27: Stock and Governance

    Stock and Governance DATALOGIC PRICE PERFORMANCE SHAREHOLDERS’ STRUCTURE 7.0 6.5 6.0 6.90% 2.03% Hydra S.p.A. 5.5 6.40% 5.0 Free Float 4.5 4.0 Tamburi Investment P. 3.5 17.37% 3.0 Treasury Shares 2.5 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar D'Amico Società di 09 10 10 10 10 10

  28. Slide 28: The Group, Strategic Guidelines, Financial Data, Appendix

    THE GROUP STRATEGIC GUIDELINES FINANCIAL DATA APPENDIX © Copyright Datalogic 2007-2011 28

  29. Slide 29: Reference Market Growth Trends

    Reference Market Growth Trends GLOBAL TRENDS  Technology shifts: analogue to digital; wireless technology  Globalization of the world economy  Increased focus on gaining efficiencies and cost reduction in supply chains  Greater safety and security concerns VALUE TO THE CUSTOMER  Better informat

  30. Slide 30: Worldwide Market Trend: ADC and IA

    Worldwide Market Trend: ADC and IA INDUSTRIAL AUTOMATION ADDRESSABLE ADC AVAILABLE MARKET MARKET  Factors driving demand:  Very fragmented industry with potential  shift to field mobility deployments additional markets worth $2.7B  need to increase efficiency and overcome  Factors driving deman

  31. Slide 31: Datalogic Positioning in ADC Available Market

    Datalogic Positioning in ADC Available Market 2009 ADC Available Market: 9.8% Market Share Datalogic market shares >30% POS Retail Scanners #1 WW – 31.5% mkt share 2009 Market Share Handheld Scanners >10% #1 in EMEA - 30.7% mkt share #3 WW -15.9% mkt share Mobile Computers #4 in EMEA - 7.9% mkt shar

  32. Slide 32: Datalogic Positioning in IA Available Market

    Datalogic Positioning in IA Available Market 2009 IA (Industrial Automation) Available Market: 3.7% Market Share Datalogic market shares(*) >12% Industrial Stationary 2009 Market Share 10% Scanners #2 in EMEA - 29% mkt share #3 WW - 14.6% mkt share 5% <2% $50 M $100 M $200 M $300 M 2009 Revenues 200

  33. Slide 33: The Four Strategic Drivers

    The Four Strategic Drivers  Focus on two major markets:  Automatic Data Capture (ADC) STRATEGIC POSITIONING  Industrial Automation (IA)  External growth through M&A activities, mainly in the Industrial Automation market  Expand emerging market (BRIC) presence through strategic alliances and for

  34. Slide 34: Strategic Positioning

    Strategic Positioning  Focus on Automatic Data Capture (ADC) and Industrial Automation (IA) markets  Group reorganization by market from January 2011– ADC, IA and Business Development - to meet customers’ needs more effectively and promptly  ADC: - Optimize distribution coverage through Datalogic

  35. Slide 35: International Expansion

    International Expansion REVENUES GROWTH BY COUNTRY  In 2010 strong revenues growth in Asia Pacific, + 63.5% and Rest of the World, 393 +58.7% 7.8% Emerging +26% markets 312 12.6% +61%  Boost revenues in emerging markets: 6.2% BRIC through new JVs and organic 9.6% growth 28.8% Mature 30.0% markets

  36. Slide 36: Innovation

    Innovation  Research & Development investments at > €26 million in 2010 or 7% on sales  +34 new products in 2010  A large and growing portfolio of 898 patents: +65 patents in 2010  9 Research & Development Centers  Leverage Evolution Robotics Retail innovative technological capability in the fi

  37. Slide 37: Efficiency and Productivity

    Efficiency and Productivity  Significant reduction of fixed cost structure, thus creating the basis for future growth  Continuous improvement in the trade working capital as result of rationalization of SKU’s and inventory processes reengineering  Adopt best in class supply chain management to ga

  38. Slide 38: Group Three Year Plan Target

    Group Three Year Plan Target REVENUES GROWTH EBITDA GROWTH €mln €mln 420-430 60-65 393 CAGR 11% 49.8 CAGR >45% 312 14-15% 12.7% 19.7 6.3% 2009 2010 2011 2012E 2009 2010 2011 2012E EBITDA Ebitda Margin  2012 organic revenues target in the range of 420-430 million Euro, 2009-2012 CAGR at 11%  Potent

  39. Slide 39: Group Three Year Plan Target

    Group Three Year Plan Target NFP* EVOLUTION ROE GROWTH €mln 21 85-90 100 18%-20% 14.0% 12.0% 25-35 2009 EVO Acquisition Cash Flow 2012E 2008 2009 2010 2012E ** -9.6%  Strong cash generation and expected debt reduction  2010 NFP improved to - €76.5 million after €21 million for EVO acquisition  In

  40. Slide 40: The Group, Strategic Guidelines, Financial Data, Appendix

    THE GROUP STRATEGIC GUIDELINES FINANCIAL DATA APPENDIX © Copyright Datalogic 2007-2011 40

  41. Slide 41: Highlights 2010

    Highlights 2010  Sales revenues grew by 26% to € 392.7 million vs. € 311.9 million in 2009  EBITDA rose to € 49.8 million (+153%) vs. € 19.6 million in 2009, with an EBITDA margin at 12.7%  Jump of net profit to € 18 million from a net loss of € 12 million in 2009  The net financial position imp

  42. Slide 42: Highlights 4Q 2010

    Highlights 4Q 2010  Revenues growth continues at a strong pace, +17% YoY, thanks to marketing and commercial efforts  Costs in Q4 higher than the previous quarters due to the extraordinary devaluation of inventories and the usual raise of the opex related to the closing of ordinary activities for

  43. Slide 43: 2010 Consolidated P&L

    2010 Consolidated P&L 000€ 2009 % 2010 % Var % Revenues 311,971 100.0% 392,742 100.0% 25.9% COGS (181,602) -58.2% (213,546) -54.4% Gross Operating Margin 130,369 41.8% 179,196 45.6% 37.5% Other revenues 2,210 0.7% 2,142 0.5% R&D (24,885) -8.0% (26,304) -6.7% Distribution Costs (68,101) -21.8% (77,19

  44. Slide 44: Strong Revenues Growth

    Strong Revenues Growth REVENUES BY DIVISION REVENUES BY AREA €000 2009 2010 Var % €000 2009 2010 Var % Datalogic Mobile (*) 68,127 87,751 28.8% Italy 39,039 43,106 10.4% Datalogic Automation 66,958 90,674 35.4% Europe 129,927 156,415 20.4% Datalogic Scanning 146,982 181,659 23.6% North America 93,49

  45. Slide 45: Segment Reporting

    Segment Reporting REVENUES EBITDA (€mln) (€mln) 36% 393 50 29% 312 24% 26% 13% 182 22 147 12% 12% 12% 20 9% 88 91 11 9% 68 67 10 8 31 33 5 4 5 4 12 15 3 (2) Mobile Automation Scanning Business DL SpA Total Group Mobile Automation Scanning Business DL SpA Total Group Development Development 2009 2010

  46. Slide 46: EBITANR - 2010 Actual vs. Last Year

    EBITANR * - 2010 Actual vs. Last Year Exch rate on sales + 7,107 (€000) Vol. sales/Mix +47,693 Service sales +162 Exch rate on DCOGS - 4,245 Exch rate on Op Exp - 3,117 7,842 7,562 38,121 47,855 -255 -11,788 -636 6,223 Act Dec '09 Price Vol. Sales/Mix New Prod. Exch rate € vs Oper Exp Business Other

  47. Slide 47: Consolidated Balance Sheet

    Consolidated Balance Sheet €000 At 31/12/2009 At 31/12/2010 Intangible fixed assets 39,621 40,998 Goodwill 87,081 106,088 Tangible fixed assets 50,822 50,042 Non Consolidated investments 2,675 3,286 Other fixed assets 23,181 23,088 Total Fixed Assets 203,380 223,502 Net trade account receivables 65,

  48. Slide 48: Net Debt Analysis: 2010 Actual vs. Last Year

    Net Debt Analysis: 2010 Actual vs. Last Year Acc. Receivable - 3,989 (€000) Inventory - 5,736 Acc. Payable +12,650 100,498 34,294 20,963 25,234 3,712 3,829 76,497 2,092 2,925 7,856 Net Debt Dec 09 Operating cash Ch Trade NWC Capex Purch./sale own Non-recurring tax payments EVO Acquisition Other Net

  49. Slide 49: The Group, Strategic Guidelines, Financial Data, Appendix

    THE GROUP STRATEGIC GUIDELINES FINANCIAL DATA APPENDIX © Copyright Datalogic 2007-2011 49

  50. Slide 50: ADC Market: Datalogic Scanning Division

    ADC Market: Datalogic Scanning Division POS Retail Scanners Handheld Scanners #1 Worldwide, 31.5% mkt share #1 in EMEA, 30.7% mkt share #3 Worldwide, 15.9% mkt share  Datalogic Magellan Scanner/Scales  Over 5 million Datalogic handheld have been installed by every one of scanners have been sold si

  51. Slide 51: ADC Market: Datalogic Mobile Division

    ADC Market: Datalogic Mobile Division Mobile Computers Datalogic Mobile – EBS #4 in EMEA, 7.9% mkt share Self Shopping Solutions #4 Worldwide, 4.0% mkt share #2 Worldwide, 26.0% mkt share Over 360 installations in Europe! #1 in Italy with 145 installations #1 in Belgium with 96 installations #2 in F

  52. Slide 52: IA Market: Datalogic Automation Division

    IA Market: Datalogic Automation Division Identification Sensors Laser Marking Product Group Product Group & Processing Business Unit Industrial Stationary Scanners #2 in EMEA, 29% mkt share #3 Worldwide, 14.6% mkt share Safety & Vision Measurement Product Group Product Group  A wide range of cuttin

  53. Slide 53: Business Development: Informatics

    Business Development: Informatics Complete Range of Easy-To-Use Barcoding Solutions  Barcoding solutions for the millions of Small – Medium Businesses that increase productivity and profitability  Based in the US, serving over 275 thousand small and medium businesses! Business Development (Informa

  54. Slide 54: Business Development: Evolution Robotics Retail

    Business Development: Evolution Robotics Retail Scanning without using the barcode  Flagship products include LaneHawk BOB and LaneHawk InCart  Based in the US, serving over 1,200 grocery stores today  Over 14,000 lanes installed! July 1st, 2010 – Datalogic acquired 100% of Evolution Robotics Ret

  55. Slide 55: 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, m

  56. Slide 56: We Welcome Your Questions!

    We Welcome Your Questions! © Copyright Datalogic 2007-2011 56

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