9M 2019 Results

Conference Call

14 NOVEMBER 2019

Disclaimer
This document has been prepared by Datalogic S.p.A. (the "Company") for use during meetings with investors and financial analysts and issolely for information purposes. The information set out herein has not been verified by an independent audit company.
Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the “Group”), as well as any of their directors,officers, employees, advisers or agents (the “Group Representatives”) accepts any responsibility for/or makes any representation or warranty,
express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information
regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available.
This document may contain forward-looking statements about the Company and/or the Group based on current expectations and opinions
developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. These forward-looking
statements are subject to significant risks and uncertainties (many of which are outside the control of the Company and/or the Group) which
could cause a material difference between forward-looking information and actual future results.
The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws and regulations,the Company assumes no obligation to provide updates of any of the aforesaid forward-looking statements.
Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss ordamage howsoever arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid
forward-looking statements.
This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or
a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever.
This document may not be reproduced or distributed, in whole or in part, by any person other than the Company.
By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.

2

9M 2019 Results in line with guidance€m

9M 2019 Results
EBITDAREVENUES

GOM€461.4€223.5(-1.0%)

48.4%(-0.2 pp)€73.3
15.9%(-0.8 pp)

NET INCOME€39.7
8.6%(-0.7 pp)€m

Q3 2019 Results
EBITDAREVENUES

GOM€156.8€75.7(-1.4%)

48.2%(-0.3 pp)€25.6
16.3%(-0.4 pp)

Net Debt at €19.5

3NET INCOME€14.4
9.2%(+0.0 pp)

Key Facts▪ Results in line with guidance with revenues declining 1% compared to last year. Despite toughmarket conditions revenues grew in North America.
▪ Vitality index improved from 13.8% in 9M2018 to 20.8% in 9M2019, accelerating to 22.0% inQ3 2019 mainly driven by Mobile Computing.
▪ T&L growing organically double digit at +14.2% and HC at +7.1% in 9M2019. Retail declining.
Solid performance of Manufacturing in Q3 in a declining market.

▪ Gross Margin almost flat at 48.4%, improved by 0.6% net of FX.
▪ EBITDA margin at 16.6% net of FX, after cost management.

▪ R&D investment at 10.3% on revenues compared to 10.1% last year, in line with theinnovation priorities.
4Group Revenues Breakdown
€m

Var %
Constant FX
vs. 9M 2018

9M 2019

9M 2018

RetailManufacturing

196,7118,1

203,2
125,3

(3,2%)(5,7%)(6,3%)(7,2%)

Transportation & Logistics

58,3

49,6

17,6%

14,2%

Healthcare
Channel (Unallocated)
Total DL Business

15,0
40,5
428,6

13,6
39,4
431,1

10,6%
2,6%
(0,6%)

7,1%
1,0%(3,1%)

Solution Net Systems
Informatics
Intra division
Total Datalogic

21,7
13,7(2,6)
461,4

22,4
14,6(2,0)466,1(3,0%)(6,3%)(8,7%)(11,8%)(1,0%)% on DL Business Revenues
Channel9%
Healthcare
3%
T&L
14%
Retail46%

Manufacturing
28%(3,8%)

DL Business: Substantially in line with 9M 2018 (-0.6%); growth in T&L and HC, partially offsetting the decline of RTL and MFG
Retail: Tough comparison with the previous year due to major Fixed Retail Scanner rollouts with large clients in EMEAI and NA in 2018. Positive
performance in LA and APAC.
Manufacturing: Slowdown continued in automotive (EMEAI) and consumer electronics (China), partially offset by double digit growth in US.
T&L: Double digit growth driven by a strong performance in NA and EMEAI.
Healthcare: Positive performance with double digit growth in EMEAI and NA.

5Group Revenues by Geography% on Group Revenues€mAPAC11%

Var %Constant FX
vs. 9M 2018
(2.9%)(3.5%)

9M 2019

9M 2018

EMEAI

233.4

240.4

North America

164.7

153.2

7.5%

1.2%

APAC

52.4

62.0

(15.5%)(17.7%)

Latin America

10.8

10.5

2.9%

(0.3%)

Total Datalogic

461.4

466.1

(1.0%)(3.8%)

LA2%

EMEAI
51%

NA36%

EMEAI: double digit growth in HC and T&L partially offsetting Retail downturn due to major FRS roll outs in 2018.
North America: Datalogic Business revenues show positive double digit growth across all verticals except Retail also impactedby FRS roll outs in 2018.
APAC: China still impacted by slow down in Manufacturing, partially offset by positive performance of Australia and Japan.

6

Q3 New Product Launches and Innovation
Hand Held Scanners

Mobile Computers

FBC9080
Fieldbus Converter
PowerScan
9501 AR
CordlessModels

Joya Touch A6
With Megapixel
Scan Engine

Gryphon 4500
Digimarc Models

Factory Automation

Identification

Machine Vision

Matrix 300N
2MP Sensor

MX-E90 Vision
Processor

Matrix 120/220
with Digimarc andOPC UA

IMPACT 12.2
Software:focus on guidance
and traceabilitySolutions

Websentinel PLUS

• 3Q New product* net sales account for 22.0% of total sales improved from 15.2% in Q3 2018
• R&D expenses up 1.2% to €47.5 million vs 9M2018.

• DL Business R&D spending amounted to approximately 11% of DL Business turnover, in line with the Group's
strategy on innovation.
* New Products: products launched in the last 24 months

7

Q3 2019 P&L€mRevenues

Q3 2019156.8

Gross Margin%on Revenues
Operating expenses%on Revenues
EBITDA%Ebitda margin
Net Profit%on Revenues
EUR/USD FX Exchange Rate

Q3 2018

Variance Constant
ReportedFX

159.1(1.4%)

75.7

77.3

(2.1%)

48.2%

48.6%

-0.3 pp(55.6)(54.5)

2.0%(35.4%)(34.2%)-1.2 pp

25.6

26.7

(4.1%)

16.3%

16.8%

-0.4 pp

14.4

14.6

(1.3%)

9.2%

9.2%+0.0 pp1.11

1.16(3.7%)▪ Revenues down 1.4% to €156.8 m (-3.7% Net FX)▪ Double-digit growth in T&L (+24.6%)▪ Solid performance of Manufacturing intough market;▪ Tough compare for the Retail industry
affected by major roll outs in 2018;+0.2 pp▪ Gross Margin slightly positive Net of FX;-1.3 pp▪ Operating Expenses increase due to carry overeffects of sales organization from last year;-0.0 pp+0.3 pp▪ EBITDA down 4.1% to €25.6m (-3.9% Net FX)EBITDA margin at 16.3%, almost flat at constant FX;▪ Net Profit at 9.2% on revenues in line with Q3
2018

89M 2019 P&L€m9M 2019

9M 2018Revenues
Gross Margin% on Revenues
Operating expenses% on Revenues
EBITDA *% Ebitda margin
EBIT% Ebit margin
Net Income% on Revenues

461.4
223.5
48.4%
(166.3)(36.1%)
73.3
15.9%
52.0
11.3%
39.7
8.6%

466.1
226.7
48.6%
(160.3)(34.4%)
77.5
16.6%
61.1
13.1%
43.6
9.3%

EUR/USD FX Exchange Rate

1.12

1.19

* Impacted by IFRS 16: Positive impact of €3.5 million on EBITDA

Variance
ReportedConstant
FX(1.0%)(3.8%)-0.2 pp+0.6 pp▪ Revenues down 1.0% to €461.4 m (-3.8% Net FX);DL Business revenues at €428.6 m (-0.6%, -3.1%Net Fx)▪ Gross Margin almost flat at 48.4%, improved by
0.6% net of FX▪ Operating expenses to €166.3 m:-1.7 pp-1.8 pp-0.8 pp-0.0 pp-1.8 pp-1.1 pp✓ S&D on revenues from 17.6% to 19.3% due
to due to carry over effects of salesorganization from last year

-0.1 pp✓ G&A and other items at 7.0% on revenues,
flat vs last year

-0.7 pp✓ R&D on revenues increased from 10.1% to10.3%;▪ Net income at €39.7 m or 8.6% on revenues(almost flat Net FX vs last year)

9EBITDA: 9M actual vs last year
€m

4.3

77.5

73.3

7.8

(11.8)

(1.1)

(1.0)

(1.2)

FXStructure

SNS/INF(1.2)-3.2% on DL
Business 2018
revenues*

9M 2018

Price

VolumeMix

Productivity

16.6% on Group
Revenues

9M 2019
15.9% on Group
Revenues

Positive Items* Excluding Service and other non significant items

10

Negative Items

Net Debt & Cash Flow Analysis : Dec’18 – Sep’19
73.3(34.7)(22.2)

23.8(15.6)(2.6)(28.7)(2.8)
NFP
Dec 18

EBITDA

Ch TWC

CapexTaxes

Purchase
Own Shares

NFP at 30 September 2018 equal to +€10.9 million

11Dividend
PaymentOther(9.4)(10.0)NFPIFRS 16
Sep 19NFP Impact
excl. IFRS 16(19.5)NFP
Sep 192019 Outlook
The positive performance of the Group's business in North America and growth in the turnover of new
products confirm that the Group’s strategy is solid. The particularly difficult economic situation in China
and the slowdown to the main segments in which the Group operates in Europe, are expected to continue

also in the fourth quarter.
Despite the uncertainty of the economic environment, the Group will continue to execute its new productdevelopment strategy, while keeping costs under control.
In current market conditions, the Group expects to close the year substantially in line with the first ninemonths, save for any deferral of investment decisions by customers, which may impact the forecastedperformance.

12

Contact
IR CONTACTSDATALOGIC ON LINE
www.datalogic.com

IR Manager
Vincenza Colucci
CDR Communication Srl
Tel. +39 335 6909547
vincenza.colucci@cdr-communication.it
IR AssistantDaniela Giglioli
Tel. +39 051 3147109
Fax +39 051 3147205
E-mail daniela.giglioli@datalogic.com
ir@datalogic.com
Via Candini, 240012 Lippo di Calderara di Reno
Bologna – Italy13

This presentation contains statements that are neither reported financial results nor other historicalinformation. 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 areoutside the control of Datalogic S.p.A., that could cause actual results to differ materially from thoseexpressed in or implied by such statements, such as future market conditions, currency fluctuations, thebehavior of other market participants and the actions of governmental and state regulators© 2019 Datalogic S.p.A. and/or its affiliates - All rights reserved. • Without limiting the rights undercopyright, no part of this documentation may be reproduced, stored in or introduced into a retrieval
system, or transmitted in any form or by any means, or for any purpose, without the express written
permission of Datalogic S.p.A. and/or its affiliates • Datalogic and the Datalogic logo are registeredtrademarks of Datalogic S.p.A. in many countries, including the U.S. and the E.U. • All other trademarks
and brands are property of their respective owners.

Datalogic S.p.A.
Via Candini, 2 - 40012 Lippo di Calderara di Reno - Bologna (Italy)
Tel. +39 051 3147011 | Fax +39 051 3147205
corporate@datalogic.com
ww.datalogic.com

14