Italian Equity
Digital Summit

19 MAY 2020

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 its subsidiaries, affiliates, branches, representative offices (the “Group”), as well as any of theirdirectors, 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 madeavailable.
This document may contain forward-looking statements about the Company and/or the Group based on current expectations andopinions 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 andregulations, 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 or damage 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
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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Corporate Overview

3

Datalogic at a glance
Global technology leader in the automatic data capture and process
automation markets, in the Retail, Manufacturing, Transportation &Logistics, and Healthcare industries

Founded in 1972, listed on the Italian Stock Exchange since 2001

1,200+ patents filed and more than 350 in approval

500 engineers in 11 R&D centers and 3 DL Labs
in: Italy, USA, Vietnam, China, and Germany
3,074 Employees in 28 countries:
20% Americas, 57% EMEAI, 23% APAC

10 Manufacturing and Repair facilities in:
Italy, US, Brazil, Hungary, Slovakia, Vietnam andAustralia
Data refer to YE 20194

Over 45 years of Technological Innovation
EXPANSION

1972

EXPANSION▪ Escort Memory Systems
Inc.
▪ IDWare mobile
Computing&Comm.

2001▪ Minec AB▪ Laservall SpA▪ Informatics Inc.
▪ PSC Inc
▪ Datasensor SpA▪ Evolution Robotic
Retail Inc.
▪ Accu-Sort System Inc.
▪ PPT Vision Inc.

FOUNDATIONLISTING▪ Established in Bologna▪ Listed on the STARsegment of the Italian
Stock Exchange

1988
1997

5

NEW STRATEGY

2012
2015

▪ Set up new One
Datalogic▪ New organization byverticals▪ Acquisition of Soredi
Touch Systems GmbHINNOVATION

2002
2011

▪ Acquisition ofMultiware Photonics SA▪ Partnership with CAEN
RFID Srl

2017

Solid long-term growth
Sales CAGR 2001-2019 +10%

€ mln
1000

14% 14%

16% 17% 16%

900

10%

12% 13%
6%

800
700
600

4%

5%

8%

6%

5%

382 404 380

400

5%
-4%

393

6%

6%

7%

2%

8%
535

8%
577

10% 10%

15%
10%

8%

606 631 612

462 451 465
426

312

300
100

4%
1%

1%

500

200

15% 14%
14%
14%
13%
13%

16% 17% 17% 16%

206

146
132
112 118▪ A history of growth in5%
profitability
0% ▪

-15%

Strong improvements across
key indicators reflecting
investments in innovation,
M&A and better efficiency
and productivity-20%▪

Robust cash generation

-5%
-10%

-25%

0

-30%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Revenues

EBITDA margin

Net Income margin

6

A Wide Geographical Footprint
10 Manufacturing & Repair sites

11 R&D Centers, 3 DL Labs
Direct presence in 28 countries
Percent on Q1 2020 Revenues

EMEAI
57.4%

Americas
32%

APAC
10.6%

Data refer to YE 2019 except for revenue breakdown by Geographic area at Q1 2020

7

Stock and GovernanceMarket Segment: STAR MTA

Ticker: DAL

Reuters Code: DAL.MI

Price (May 15, 2020): 10.87 Euro

Bloomberg Code: DAL IM

Market Cap (May 15, 2020): 635 mln Euro

Outstanding Shares: 58,446,491

Auditing Company: Deloitte

Share Par-Value: 0.52 Euro each
DATALOGIC SHARE PERFORMANCE vs. INDICESSHAREHOLDERS’ STRUCTURE

120

33.2%

110
100

64.8%

90
ITSTAR.MI

80

FTSEMIB.MI

70

DAL.MI
60

Hydra SpA
Treasury Shares
Free-Float50
4002/01/2020

2.0%
02/02/2020

02/03/2020

02/04/2020

02/05/2020

8Strategy9

Total Addressable Market
TAM:~ 14 bln USD

Healthcare

DATALOGIC MKT SHARE

T&L
12%

Healthcare
4%•

Fixed retail scanners#1 WW: >35% market share•

Stationary industrial scanners#1 WW: >20% market share•

Handheld Scanners#3 WW: ≈ 20% market share

T&L
RetailManufacturing

Retail25%

Manufacturing
59%

2018
Source: VDC, other market researches and Management estimates

10

OUR Strategy
Objective

Scope

Advantage▪

▪

Remain a product company
with new emphasis on
solutions to satisfy theneeds of End Users in thefollowing Industries: Retail,
T&L, Factory Automation,
Healthcare▪

▪

Consolidate our position in
EMEA and become a strong
player in NA▪

Further establish in APAC
with a growing presence in
China

Grow above market
average, while expanding
profitability

11

Wide range of products
able to fulfill our
Customers’ needs for bothdata collection and process
automation and providing
end-to-end solutions
across the entire flow of
operations

A wide range of products that is able to fulfill our customers’
needs for both data collection and process automation
Most complete offer of barcode readers: from retail toindustrial scanners, from hand held to mobile

Complementary/Open doors products in
the MFG Industry

Undisputed leadership on barcode readers

12Our products are key enablers of criticalapplications along our customers’ supply chain

Self-ShoppingMark & Read

Complete Traceability

Dimensioning & Weighing
Systems

Mark & Trace
13

Retail
Datalogic Proposition▪
▪

▪

We meet the needs of retailers globally, from the distribution centers, throughcheck-out, to the customer’s homeMarket Leader along the Retail supply chain from 1974 with the first scanner eversold to a grocery store in Troy, Ohio up to now with the innovative frictionless
shopping solution presented at the 2019 NRF exhibition in New York
Machine learning technology adoption to be ready for the next checkout POS
investment cycle

Market Outlook▪ The main international players are experimenting new products and solutions tosatisfy new shoppers’ needs and improve efficiency of their operations: click &collect, drive & collect, online verification, in real time, of the availability and exact
position within the shelves of the products in the store or in the warehouse,assisted selling, self scanning and self check-out▪ Retailers are more and more interested in collecting customers’ data to do analytics
to better serve them
▪ Increase of distribution centers advanced automated logistics solutions to optimize
online shopping

14

Manufacturing
Datalogic Proposition▪

Leader in traceability thanks to the most complete and performing offer ofstationary industrial scanners▪

Unique portfolio provider of smart, interconnected devices able to protect, identify,
sense, check and mark
Datalogic is providing multi-product portfolio to serve all the major manufacturing
clients: Automotive, Food and Beverage, Automated Machinery and Electronics,
and Intralogistics▪

Market Outlook▪ Market trends▪ Industry 4.0▪ DPM / Extended Traceability and Quality Inspection▪ Robotics / AGV▪ New segments due to new technology (i.e. Electric car)▪ Industry 4.0 is pushing for multi-technology adoption, product interoperability andenhancement self diagnostic capabilities▪ The adoption of key digital technologies shows a strong growth over the next 5 years▪ The Industrial Robotics Market stands at 13.9 billion USD with an 11.8% growth *** Source: IoT Analytics** Source: International Federal of Robotics (IFR) data and Loup Ventures

15

Transportation & Logistics
Datalogic Proposition
▪
▪

▪
▪

We ensure Data Collection to Courier-Express-Parcels, Airports and Logistics
Datalogic is at the forefront of the development of airport systems, since 1984
with the first automatic reading station in Milan, to the recent contract with a main
European hub in compliance with new IATA requirements
Datalogic’s proven capabilities are reflected by the recent “Platinum” supplierqualification granted by a world leader in the shipping and logistics sector
Historically leader in stationary industrial scanners and sorting solutions Datalogic
has a big opportunity to seize in the T&L mobility space

Market Outlook
▪
▪
▪

▪
▪

Growth is driven by E-commerce: high speed sorting, ability to manage any size ofparcel, and high flexibility. E-Commerce is driving the industry growth
Resolution 753 requires (from June 2018) IATA members to maintain an accurate
inventory of baggage by monitoring the acquisition and delivery of baggage
The baggage handling system market* is projected to reach USD 9.4 Billion by 2020,
at a CAGR of 8% from 2015 to 2020
Strong demand for solutions beyond barcode
Robotics & Automation: collaborative robots and automatic solutions to get higher
productivity, zero-defects, reducing manual operations*Source: IATA

16

Healthcare
Datalogic Proposition▪
▪

We empower the entire Healthcare ecosystem from drug production to patientcare
Datalogic is the sole company providing unique product features for the HC
industry such as: Anti-microbial enclosures, Inductive charging technology forbattery recharge, and Green spot good match to ensure positive medicine-patient
identification

Market Outlook▪

Hospital investments in patient safety are expected to grow significantly in the next
5 years: technology adoption to secure proper patients traceability and drug
administration▪

Drugs tracking to avoid counterfeit medications▪

HC Emerging trends: Telemedicine/Telehealth. Health systems are more and moreusing digital health tools and telehealth platforms to better take care of patients
after they leave the hospital17

Recent New Product Launches and Innovation
MobileT&L

Factory Automation

Other Products
Gryphon 4500
Digimarc Models

AV 500
Memor 10 PDA wirth
MP Scan Engine

Joya Touch A6
With Megapixel Scan
EngineMatrix 120/220 with
Digimarc and OPC UA

IMPACT 12.2 Software:focus on guidance andtraceability

Magellan
1500i
Taskbook

Falcon X4 Auto
Range
Datalogic Shield

Matrix 300N
2MP Sensor

S5N Sensors and
IO-Link Master

Matrix 220
High Power andBlue Light Models

Powerscan 9501
for cordlessmodels❑ FY2019 Vitality index of 20.1% of total sales compared to 15.0% in 2018. Q1 2020 Vitality Index* continues

improving to 22.2%❑ 2019 R&D spending** amounted to approximately 65 m€ 10.6% on turnover, in line with the Group's strategy on

innovation❑ 20 new patents filed in 2019 reaching 1,230 patents*New products/ net sales. New Products are the ones launched in the last 24 months** Total R&D spending including capitalized R&D

18

Key Growth and Strategic Drivers
Industry▪
▪
▪
▪

Products▪ Protect our leadership in SIS▪ FRS: Be ready for the next generation/evolution not revolution▪ Mobile: increase market share completing and widening our offer of portable data terminal (PDT) andportable data assistant (PDA)▪ HHS: lead the shift to 2D technology

Technology▪ Continuous improvement of core technology (bar code reading) e.g. optics, decoding▪ Investing in complimentary technologies:▪ Vision / Machine learning▪ RFID▪ Digital watermarking▪ Investing in Android

M&A

Keep focus on all of our 4 verticals
RTL ($ 4 bln): check out evolution, cross sell mobile, watch distribution centers carefully
MFG ($8 bln): expand into new sectors to offset automotive crisis
T&L ($2 bln): cross sell – complete offer SIS, Mobile, HHS▪ Selected target to accelerate our growth and/or to acquire critical technologies

19

Financials &Outlook20

2019 Financials

21

2019 Financial Highlights
in line with expectations despite toughmarket conditions in an uncertain environment.

❑ Cash Generation with a free cash flow at 32.6 m€ in❑ Growth in North America (+6.6%) in all industries,❑ Net Cash position in line with last year excluding IFRS❑ Results

FY2019.

16.

offset by slowdown in APAC (-19.6%) and EMEAI (4.7%) due to deterioration of ‘end markets’ mainly
consumer electronics in China, automotive andpackaging in Europe and tough compare due to FRS
roll-outs in 2018 in Retail. Group Revenues declining
low single digits (-2.9%) compared to last year.

❑ Keep executing on the Group Strategy and Innovation

Roadmap in key Markets (Mobile,
Automation and T&L)

Industrial❑ Vitality index significantly improved from 15.0% in❑ Solid

EBITDA margin at 15.5% despite volume
decrease.

FY2018 to 20.1% in FY2019, mainly driven by Mobile
Computing.

❑ Increasing investments* in R&D at 64.7 m€ (+2.1%

VS LY) reaching 10.6% on revenues, executing Group’s
innovation strategy.
* Total R&D spent Including capitalized R&D

22

2019 Group Revenues by Segment€m

FY 2019

FY 2018

RetailManufacturing
Transportation & Logistics
Healthcare
Channel (Unallocated)
Total DL Business

265.7
157.4
75.0
20.0
50.0
568.1

278.0
169.9
68.6
20.1
49.2
585.7

Solution Net Systems
Informatics
Intra division
Total Datalogic

29.1
18.7
(3.4)
612.5

28.3
19.6
(2.6)
631.0

Var %
vs. FY 2018
(4.4%)(7.4%)
9.5%(0.3%)
1.8%(3.0%)

Constant FX(7.1%)(8.6%)
6.6%(3.2%)
0.4%(5.2%)

2.6%(4.3%)(2.6%)(9.3%)(2.9%)(5.3%)% on DL Business Revenues
Channel
8.8%
Healthcare
3.5%
T&L
13.2%

Retail46.8%

Manufacturing
27.7%

DL Business decline -3.0%❑ T&L: strong growth driven by EMEAI and double digit growth NA.

❑ Retail: tough comparison due to major Fixed Retail Scanner rollouts with large clients in EMEAI in 2018. Positive

performance in APAC and Americas.
❑ Manufacturing: double digit growth in North America, partially offset by slowdown in Automotive (EMEAI) and in

consumer electronics (China).
❑ Healthcare: substantially flat with positive performance in EMEAI and NA.

23

2019 Group Revenues by Geography% on Group Revenues

FY 2019

FY 2018

EMEAI

309.6

324.8

Var %
vs. FY 2018
(4.7%)

North America

219.4

205.9

6.6%

1.5%

APAC

67.4

83.8

(19.6%)(20.1%)

Latin America

16.1

16.5

(2.5%)(4.3%)

Total Datalogic

612.5

631.0

(2.9%)(5.3%)

€m

APAC
11.0%

Constant FX

LA
2.6%

(5.9%)
EMEAI
50.5%

NA
35.8%

❑ EMEAI: growth in HC and T&L partially offsetting Retail downturn due to major FRS roll outs in 2018.
❑ North America: revenues show positive growth across all verticals. Excluding SNS and INF, NA Business grew 8.8%.

❑ APAC: China still impacted by the drop in Manufacturing, partially offset by positive performance of Australia and Japan.

24

FY 2019 P&L€m

FY 2019

FY 2018

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

612.5
293.1
47.9%
(220.0)(35.9%)
95.0
15.5%
65.5
10.7%
50.3
8.2%

631.0
306.0
48.5%
(215.6)(34.2%)
105.5
16.7%
83.5
13.2%
62.2
9.9%

EUR/USD FX Exchange Rate

1.12

1.18

Variance
Reported(2.9%)

Constant
FX(5.3%)▪ Revenues down 2.9% to €612.5 m (-5.3% Net FX);
▪ Gross Margin at 47.9%, flat Net FX-0.6 pp+0.0 pp▪ Operating expenses at €220.0 m:✓ R&D on revenues in line with previous year

-1.8 pp-1.2 pp-0.6 pp-2.5 pp-2.0 pp✓ S&D on revenues from 17.8% to 19.7% dueto the carry over effects of commercialorganization investments from last year
✓ G&A and other items kept under control-1.6 pp-1.2 ppfrom 6.6% to 6.5%
▪ Net income at €50.3 m or 8.2% on revenues* Impacted by IFRS 16: Positive impact of €4.6 million on EBITDA

25

2019 EBITDA: FY actual vs last year
€m

105.5

3.7

5.8

(17.3)-3.4% on DL
Business 2018
revenues*

FY 2018

Price

4.8

0.7

95.0

Structure

SNS/INF

FY 2019

(1.1)

(7.2)

VolumeMix

Productivity

FX

16.7% on Group
Revenues

15.5% on Group
Revenues
Positive Items* Excluding Service and other non significant items

26

Negative Items

2019 Net Debt & Cash Flow Analysis : Dec’18 – Dec’19
€m

95.0
(6.0)

(38.0)(12.1)

(3.3)

(4.3)

23.8

23.4
(28.7)

13.4(3.0)(10.1)NFP
Dec 18

EBITDA

Ch TWC

Capex

Taxes

Financial Purchase Dividend
Charges Own Shares Payment

27

Other

NFP
IFRS 16
Dec 19 NFP Impact
excl. IFRS 16

NFP
Dec 19

Q1 2020
Updates28

Q1 2020 Financial Highlights❑ Vitality index continue improvingfrom 19.5%
in Q12019 to 22.2% in Q12020, mainly driven
by HHS and Mobile❑ Significant

Covid-19 impact on Revenue in
APAC, next to already anticipated phase out of
Retail and T&L projects in EMEAI and North
America❑ Adj EBITDA mainly affected by lower volume

and increase in R&D to protect the Technology
roadmap, partially offset by S&D cost reduction
program launched in 2020.

❑ The restrictive measures adopted initially in

APAC and subsequently in Europe and North
America led to revenue slippage mainly due toSupply Chain and Demand slowdown❑ Free Cash Flow at negative €27.0 m due to the

cash absorption from operations and increased
safety stocks due to Covid-19❑ Positive performance of Retail and Healthcare

in the Americas. T&L affected by completion oflarge orders in US and installation
postponement in EMEAI due to Covid-19.
Retail EME

29

Covid-19 - Actions in a challenging environment▪

People▪
▪

Clients

Health and safety of our people is a priority. Sound health and safety protocols established for all facilities
Smart working established globally to the maximum extent possible
Ensuring operations in production with highest health and safety standards in compliance with regulations▪

Strong commitment to guarantee optimal continuity to our customers and partners, whilst working
remotely by hosting virtual meetings and demonstrations.

▪

Donations and community support by providing to Italian hospitals antimicrobial devices, disinfectant
ready to prevent Covid-19 infection and ensure correct patient identification.

▪

Cost management by:▪ Activation of Government social schemes and other employment support tools▪ Sound Cost reduction plan on any discretionary spending while driving commercial
efficiency
Strong Financial Structure with Net Debt of €21.0 m. Additional credit lines available providing
significant headroom to secure future investment for growth in uncertain environment.

Community

Financial
impactmitigation•

30

Ready for post Covid-19 challenges
MobileAntimicrobial disinfectant-ready devices• E-commerce• T&L• Datalogic supports the fight against Coronavirus• Outer shell of our devices made of antimicrobial
plastic:– repels pathogens and limits their infectious
diffusion– resilient to withstand numerous cleanings
by harsh medical disinfectants approved by
EPA, including disinfectants that are
qualified for use against COVID-19

Memor 10

Memor 20

Memor 1

Joya

Stationary Industrial Scanners

Presentation Scanners• Number #1 in Industrial Scanners• Complete offer for T&L and E-commerce applications• Magellan 1500i able to read through plexiglass screen

AV7000

AV500

AV900

31

Copyright Datalogic 2019 – Confidential Proprietary Information

Q1 2020 P&L€m
Revenues
Gross Margin% on Revenues
Operating expenses% on Revenues
Adjusted EBITDA% Adj. Ebitda margin
EBIT% Ebit margin
Net Income% on Revenues
EUR/USD FX Exchange Rate

Q1 2020

Q1 2019

124.2
58.0
46.7%
(56.7)(45.7%)
7.3
5.9%
(1.2)
(1.0%)(4.3)(3.4%)

144.6
70.2
48.5%
(53.9)(37.3%)
21.6
15.0%
14.8
10.2%
12.6
8.7%

1.10

1.14

Variance
Reported(14.2%)

Constant
FX(15.0%)▪ Revenue -14,2% driven by large roll-outs in Q12019,
T&L projects completion and overall Covid effect.
▪ Gross Margin at 46.7%, decrease mainly due to-1.8 pp-1.3 ppvolumes and lower absorption of fixed costs. Pricesubstantially in line with past trend-8.4 pp▪ Operating expenses at €56.7 m:-9.1 pp-8.5 pp-11.2 pp-10.7 pp

✓ R&D expenses increased by 18.3% for strategic
investments✓ S&D €2.6m savings vs LY net of 2019 one-offs-12.1 pp-11.6 pp

✓ G&A expenses in line with previous year
▪ Financial charges impacted by unfavorable FX andnegative fair value on cash equivalents investments at
the lows of Q1 financial market

32

EBITDA Adj: actual vs last year€m

R&D spending
offset by structure
efficiency

21.6

(2.1)
(6.4)
(3.3)

-1.9% on DL
Business 2019
revenues*

Q1 2019

Price

0.1

Volume

Mix

1.0
7.3

(0.7)

Productivity Structure(2.9)

SNS/INF

FX/other

15.0% on Group
Revenues

Q1 2020
5.9% on Group
Revenues

Positive Items* Excluding Service and other non significant items

33

Negative Items

Q1 2020 Net Debt & Cash Flow Analysis
€m
7.3
13.4

(18.0)

(8.7)
(4.4)
(3.2)
(2.5)
(1.6)
NFP
Dec 19Adj.
EBITDA

Ch TWC

Capex

Taxes

Financial
Charges

34

Purchase Own
Shares

Other

(3.3)

(21.0)∆ IFRS 16
NFP Impact

NFP
Mar 202020 Outlook▪ Given the current crisis relating to the Covid-19, and the timing of a possible recovery, the Group believes it is not yet possible toestimate the overall impact it will have on the full year. The evolution of the pandemic, the resolutions of authorities regarding
lockdowns, as well as market reactions and possible recessions imply negative growth forecasts for the first half of 2020 and
potentially for the remainder of the year

▪ The Group is implementing measures to mitigate the financial impact of Covid-19, focusing on solid cost reduction plans, while
protecting technology investments and strengthening the already sound financial structure▪ Despite the expected short-term negative trend, the solid economic and financial fundamentals will lead Datalogic to grow again
in the medium and long term

35

Contact
NEXT EVENTSIR CONTACTS
IR Manager
Vincenza Colucci
CDR Communication Srl
Tel. +39 335 6909547
vincenza.colucci@cdr-communication.it

May 26, 2020
Virtual STAR Conference Milan
June 4, 2020
Shareholders’ Meeting

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 – Italy

DATALOGIC ON LINE
www.datalogic.com

36