Datalogic S.p.a. · MIL:DAL

Datalogic — H1 2016 Earnings Presentation

20 slides from Datalogic's earnings presentation, Aug 4, 2016

1. Slide 1: 1H 2016 Conference Call

   1H 2016 Conference Call August 4th, 2016

2. Slide 2: Agenda

   Agenda = 1H 2016 = Outlook pues TI IL www.datalogic.com 2 S&S DATALOGIC THE VISION 1S YOURS

3. Slide 3: 1H 2016

   1H 2016 DATALOGIC

4. Slide 4: 2Q 2016 Key Factors

   2Q 2016 Key Factors  Improved customer penetration in US Retail and Europe Factory Automation FOCUS ON CLIENT  27.4% of revenues comes from new products* (26.4% in 2015)  Reaffirmed leadership in Europe and strong growth in US MARKET  Some impact from economic uncertainties in fast growing marke

5. Slide 5: Highlights 2Q 2016

   Highlights 2Q 2016 Revenues  +8.4% YoY to 146.5 mln Euro (+9.4% at constant exchange rate) mainly thanks to North America both in ADC and IA and to Europe in IA  +40.3% YoY to 26.1 mln Euro (+38.8% at constant exchange rate) EBITDA thanks to operating cost reduction and to the shift of some R&D ex

6. Slide 6: 2Q 2016: Best quarter over two years

   2Q 2016: Best quarter over two years € mln REVENUES 143.8 146.5 135.2 133.8 135.4 116.0 124.5 122.3 115.8 108.2 Q1 -14 Q2 -14 Q3 -14 Q4 -14 Q1 -15 Q2 -15 Q3 -15 Q4 -15 Q1 -16 Q2 -16 € mln EBITDA EBITDA m ar gin % 26.1 20.7 18.7 17.9 18.6 18.8 18.8 17.4 15.5 15.7 17.8% 16.1% 15.4% 14.3% 14.0% 12.8% 1

7. Slide 7: 2Q new products: DL-Axist

   2Q new products: DL-Axist FULL TOUCH ANDROID RUGGED PDA 802.11 a/b/g/n with MIMO technology 5 inch HD multi-touch screen with Corning® Gorilla® Glass 3 (first terminal adopting MIMO in the industry) and Cisco CCX v4 certified IP67 rating and 1.8 m / Bluetooth® wireless 6.0 ft drop resistance technol

8. Slide 8: Highlights 1H 2016

   Highlights 1H 2016  +9.5% YoY to 281.8 mln Euro (+9.5% net FX effect)  Growth driven by ADC in North and Latin America thanks to robust investments by retailers and the launch of technologically advanced products Revenues  Industrial Automation strongly grew in Europe and Greater China  Strong i

9. Slide 9: 1H 2016 Profit and Loss

   1H 2016 Profit and Loss € 000 1H 2016 1H 2015 Var % Revenues 281,842 100.0% 257,485 100.0% 9.5% COGS (150,822) (53.5%) (136,046) (52.8%) 10.9% Gross Operating M argin 131,020 46.5% 121,439 47.2% 7.9% Oth er Reven ues 2,038 0.7% 1,209 0.5% 68.6% R&D (24,317) (8.6%) (23,449) (9.1%) 3.7% Distr ib ution

10. Slide 10: Revenues Trend by Division

    Revenues Trend by Division REVENUES BY DIVISION (%)  ADC Division grew by 9.8% to 194.8 million Euro Informatics 4.5%  POS check out fixed scanners with the new imaging technology is driving growth in Retail IA 26.7%  The new DL-Axist, a Full Touch Android rugged PDA launched in May is pushing sa

11. Slide 11: Revenues Trend by Country

    Revenues Trend by Country REVENUES BY GEOGRAPHIC AREA  Europe continues to generate robust growth in particular in IA* (+11.8%) and €mln 1H 2016 1H 2015 Var % in ADC (+7.6%), confirming the Europe 144.5 133.0 8.7% leadership of the Group North America 84.5 73.6 14.8% Asia Pacific 34.7 33.9 2.4%  N

12. Slide 12: FY Segment Reporting: GOP and EBITDA

    FY Segment Reporting: GOP and EBITDA GOP BY DIVISION EBITDA* BY DIVISION € mln € mln 131.0 121.4 48.6 86.1 92.3 41.1 45.0 34.3 29.6 33.2 6.5 5.8 (0.8) (0.4) 1.3 3.8 0.1 (0.3) (8.2) (7.2) ADC IA Infor m atics Corp or ate Total Gr oup ADC IA Infor m atics Corp or ate Total Gr oup 1H2015 1H2016 1H2015

13. Slide 13: FY Segment Reporting: R&D and TWC

    FY Segment Reporting: R&D and TWC R&D BY DIVISION TWC BY DIVISION € mln € mln 54.0 56.1 23.4 24.3 38.1 19.1 34.2 15.4 8.5 9.4 16.9 20.3 0.6 0.8 (0.9) (4.9) 2.8 4.0 (3.7) (2.4) ADC IA Infor m atics Corp or ate Total Gr oup ADC IA Infor m atics Corp or ate Total Gr oup 1H2015 1H2016 1H2015 1H2016 € ml

14. Slide 14: EBITDA: Actual vs Last Year

    EBITDA*: Actual vs Last Year Vol. sales/Mix 24.1 Negative Items Service sales 0.5 Positive Items € mln 24.6 1.4 0.9 45.0 (0.03) (0.3) (3.0) 34.3 - GOM System : 1.8 Informatics : (0.4) EBITDA EBITDA 13.3% 15.9% Of which (13.0) Materials (0.7) Price Erosion: 3.9% on Tot Rev Labour 0.2 One shot marketi

15. Slide 15: Consolidated Balance Sheet at 30.06.2016

    Consolidated Balance Sheet at 30.06.2016 TOTAL ASSETS EQUITY AND NFP € mln Other Assets Trade Working 34.2 Other Liability Capital 56.1 115.0 Net Financial Position 27.5 Total Fixed Equity Assets 356.5 304.3 15

16. Slide 16: Net Debt Analysis: Dec '15 – June '16

    Net Debt Analysis: Dec ‘15 – June’16 € mln Acc. Receivable (7.0) LT MIP cash out (4.7) Inventory (19.1) Reserves changes (0.2) Acc. Payable 6.6 Other investments 0.6 Neg at ive Cash f low Po sit ive Cash Flo w (4.3) (27.5) (14.5) (0.4) (21.0) 44.7 1.6% on revenues (7.8) (4.6) Net Debt Operating Taxe

17. Slide 17: Outlook

    Outlook SDATALOGIC

18. Slide 18: 2016 Outlook

    2016 Outlook  Maintain the positive trend in Europe and double digit growth in North America and China.  Improvement of Operations Efficiency reducing weight of COGS thanks to reduction of material costs and insourcing of core components  R&D investment up to 9.0% of revenues to keep the innovati

19. Slide 19: Contact

    Contact IR CONTACTS NEXT EVENTS IR Manager October 7th, 2016 Vincenza Colucci STAR Conference - London CDR Communication Srl Tel. +39 335 6909547 vincenza.colucci@cdr-communication.it November 11th, 2016 IR Assistant 9M results Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela

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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