BOARD OF DIRECTORS APPROVES INTERIMREPORT AT 31 MARCH 2019
REVENUES AT ◦144.6 MILLIONEBITDA AT ◦21.6 MILLION, 15.0% ON REVENUESNET PROFIT AT ◦12.6 MILLION, UP 12.4%• Revenues at ◦144.6 million, up 1.2% (-2.1% at constant exchange rates) from ◦142.9 million inthe first quarter of 2018.
• EBITDA1 at ◦21.6 million, down 1.4% on ◦22.0 million in the first quarter of 2018; EBITDA margin
down from 15.4% to 15.0%.
• Net profit at ◦12.6 million, up 12.4% from ◦11.2 million in the first quarter of 2018.
• Negative Net Financial Position at ◦3.9 million vs a positive position of ◦23.8 million at 31
December 2018. The change is due to the effects, merely accounting, of the application of thenew accounting standard IFRS 16-Leases, equal to ◦14.1 million, net of which it would havebeen positive by ◦10.2 million.
Bologna, 14 May 2019 - The Board of Directors of Datalogic S.p.A. (Borsa Italiana S.p.A.: DAL), acompany listed in the STAR Segment of the Italian Stock Exchange managed by Borsa Italiana S.p.A.
(“Datalogic”) and global leader in the automatic data capture and process automation markets, hasapproved today its interim report on operations at 31 March 2019.
The Chief Executive Officer of the Datalogic Group, Valentina Volta, commented: “The results of thefirst quarter showed a double digit growth in the Transportation & Logistics segment and a positive
recovery in the Healthcare segment, while in terms of geographic areas, we saw growth in North
America and in EMEA, excluding Italy, and a negative performance in APAC area due to the slowdownin China.
The quarter thus ended with a marginal growth in turnover. Nonetheless, thanks to the reduction ofproduction costs, though profitability was penalised by an unfavourable trend in exchange rates, itremained substantially in line with the first quarter of 2018.
We expect the elements of uncertainty in the macroeconomic scenario that gained shape in the firstquarter may also impact the current quarter. Nonetheless, we are satisfied with the level of interest of
our customers in new products, specifically mobile computers, and we expect a recovery in the second
half which, if there are no significant changes in the economic trend, will allow us to record growth alsofor 2019.”

RESULTS OF THE FIRST QUARTER OF 2019

Consolidated net revenues were ◦144.6 million, up 1.2% from ◦142.9 million in the first quarter of 2018(-2.1% at constant exchange rates).
The gross operating margin, equal to ◦70.2 million, grew by 0.5% compared to ◦69.8 million of thesame period of the previous year, also showing incidence on revenues substantially in line with thesame quarter of the previous year, going from 48.8% in 2018 to 48.5% in 2019, due to the efficiencies
in materials costs and the improvement of the mix, which offset the unfavourable trend in exchange
rates.
Operating and other costs , equal to ◦53.9 million, were up 4.9% compared to ◦51.4 million of the same
period of 2018 and increased by 1.3 percentage points in terms of incidence on turnover, going from
36.0% to 37.3%. In particular, distribution costs increased by 12.9% to ◦29.1 million, accounting for20.1% of revenues as compared with the 18.0% recorded in the same period of 2018, attributable tothe investments made in 2018 to strengthen the commercial organisations. Research andDevelopment costs, amounting to around ◦14.3 million (◦14.5 million in the first quarter of 2018) weresubstantially in line with the previous period, with an incidence on turnover of 9.9%.
EBITDA decreased by 1.4%, going from ◦22.0 million in the first quarter of 2018 to ◦21.6 million, whilst
the incidence on revenues (EBITDA margin) came to 15.0%, from 15.4% in 2018. The slight decrease
was due to the increase in the incidence of operating costs and to the unfavourable trend in exchange
rates, partially offset by the benefit deriving from the adoption of the new accounting standard IFRS 16- Leases, which resulted in the recording of higher depreciation and lower costs for leases and rentalsof ◦1.3 million.
EBIT decreased by 10.3% to ◦14.8 million from ◦16.5 million in the same period of previous year, whilst
the incidence on revenues came to 10.2% from 11.6% in the first quarter of 2018.
Financial income was a positive ◦1.3 million, compared to a negative ◦1.8 million of the same period of
2018, mainly due to the trend in exchange rate gains and losses, positive for ◦1.5 million, and higher
income from liquidity investments.
The Group’s net profit was equal to ◦12.6 million, up 12.4% on the profit registered in the same periodof the previous year, equal to ◦11.2 million.
At 31 March 2019, the Net Financial Position was negative for ◦3.9 million, booking a decrease of ◦36.3million on 31 March 2018 (when it was positive for ◦32.3 million) and a decrease of ◦27.8 million on 31

December 2018 (when it was positive for ◦23.8 million). The change is mainly due to the accountingeffects of the application of the new accounting standard IFRS 16 - Leases, which resulted in thebooking of right of use assets for ◦14.3 million and financial liabilities for leases for ◦14.1 million. Net oftreasury share purchases and the adoption of IFRS 16, period cash absorption deriving from thebusiness came to ◦11.1 million (positive in the first quarter of 2018 for ◦2.2 million).
This performance was due to the increase in net investments of ◦6.1 million (◦2.7 million in the firstquarter of 2018), to the negative change in net working capital for ◦18.3 million (◦11.3 million in the firstquarter of 2018) and to the negative change in other assets and liabilities for ◦5.2 million (◦0.7 million inthe first quarter of 2018), attributable to VAT credits.
At 31 March 2019 the Trade Working Capital was ◦87.4 million (13.8% of revenues), up by ◦18.3 million
on 31 December 2018 and by ◦14.6 million on 31 March 2018. The change is attributable to theincrease in inventories and the reduction in trade payables, partially offset by the improvement in tradereceivables.
The Net Invested Capital, equal to roughly ◦394.4 million, booked an increase of ◦42.4 million
compared to the previous year, due to the increase in net working capital of ◦24.2 million and net
investments fixed assets of around ◦19.7 million, mainly represented by product development andtangible assets, of which around ◦14.3 million deriving from the adoption of IFRS 16.

PERFORMANCE IN THE QUARTER BY DIVISIONIn the first quarter, the Datalogic Division recorded turnover of ◦135.6 million, up 2.3% on 2018 (-0.7%
at constant exchange rates), showing a positive performance in North America (+18.6%) and EMEAI(+1.5%).
Division EBITDA amounted to ◦20.7 million, down 0.5%, with an incidence on turnover of 15.3%(15.7% at 31 March 2018).

(*) The comparative data for 2018 has been consistently restated as a result of the reallocation ofrevenues to the various operating segments.
(**) The Channel (Unallocated) segment includes revenues that cannot be directly attributed to the 4identified segments.

The Retail segment decreased by 2.2% on the previous year (-5.6% at constant exchange rates)
seeing a slowdown in all geographic areas except for North America, which grew by 5.3%.
The Manufacturing segment decreased by 4.0% on the previous year (-5.9% at constant exchangerates). The slowdowns in the EMEAI (-3.1%) and APAC (-17.4%) were only partially offset by thepositive performance in North America, up by 19.4% (10.3% at constant exchange rates).
The Transportation & Logistics segment recorded a strong growth, equal to 16.8% on the same periodof 2018 (+12.5% at constant exchange rates), driven by exceptionally positive performance in North
America, which grew by 44% (+33.1% at constant exchange rates).
The Healthcare segment recorded a growth of 19.9% (+15.6% at constant exchange rates) on the firstquarter of 2018, driven by sales in the EMEAI.
Sales through the distribution channel, above all to small and medium customers not directly
attributable to any of the 4 main sectors, recorded an increase of 30.9% (+28.8% at constantexchange rates).
The Solution Net Systems Division recorded revenues of ◦5.5 million, down 10.3% on the first quarterof 2018 (-17.2% at constant exchange rates), mainly due to the seasonality of the progress of orders.
Division EBITDA amounted to ◦1 million, with an incidence on turnover of 18.0%, compared to 15.7%
in the first quarter of 2018.
In the first quarter, the Informatics Division recorded revenues of ◦4.3 million, down 10.1% (-17.0% atconstant exchange rates) on the first quarter of 2018. Division EBITDA was negative for ◦0.1 million(positive for ◦0.1 million in the same period of 2018).

PERFORMANCE BY GEOGRAPHIC AREA
The table below shows Group revenue by geographic area, as achieved in the first quarter of 2019 vsthe same period of 2018:(*) EMEAI: Europe, Middle East, India and Africa; APAC: Asia & Pacific including China.
(**) The comparative data has been consistently restated to reflect the new allocations of revenues.

During the first quarter of 2019 growth reached 10.2% in North America, primarily due to thefavourable trend in exchange rates, while there was a slowdown in the APAC area, down by 18.2%.
Performance in the EMEAI area, which grew overall by 1.5%, was penalised by the negative
performance in Italy, while significant growth was recorded in the rest of the area, specifically in DACH
countries (Germany, Austria and Switzerland).

SIGNIFICANT EVENTS DURING THE QUARTER
There are no significant events to report.

SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE QUARTER
On 30 April 2019, the Shareholders’ Meeting approved the distribution of an ordinary unit dividend,gross of legal withholdings, of ◦0.50 per share, with coupon detachment on 27 May 2019 (record date28 May 2019) and payment from 29 May 2019, for a total maximum amount of ◦29,223,245. The
above-mentioned Shareholders’ Meeting also resolved:◦ to revoke the authorisation of the Board of Directors to purchase treasury shares, decided by theShareholders’ Meeting on 23 May 2018, and to concurrently authorise the Board of Directors,pursuant to and in accordance with Art. 2357 et seq. of the Italian Civil Code and Art. 132 of
Italian Legislative Decree no. 58 of 24 February 1998, to make purchases of treasury shares of
the Company (which, at 30 April 2019, amounted to 1,013,787 treasury shares, equal to around
1.7% of the share capital), in one or more steps, for a period of no more than 18 months, startingfrom the date of the resolution;◦ to approve, pursuant to and in accordance with Art. 114-bis of Italian Legislative Decree no. 58of 24 February 1998, the adoption of the plan to assign performance shares 2019 – 2021 named

the “2019-2021 Performance Shares Plan”.

OUTLOOK
Some of the elements of political uncertainty and of the expected global macroeconomic scenario took
shape in the first quarter of 2019, resulting in a slowdown in the economic trend in several geographic
areas, specifically in China and Italy, while North America was the market with the highest growth forthe Group.
The expectations for the main long-term development trends in all the main reference industries areconfirmed, despite the signs of slowdown: industrial automation and robotics development in theManufacturing sector; investments in technology to reduce costs and improve the customer
experience of Retail sector customers; increased volumes of deliveries following the development of
e-commerce and consequent rise in investments in technologies aiming to minimise errors and reducedelivery terms in the Transportation & Logistics sector; the evolution of the regulatory framework
towards higher safety standards in the Healthcare sector.
The macroeconomic scenario that penalised Group revenues, primarily in China and Italy, continues toshow several elements of uncertainty, which could also impact the current quarter. Despite thiseconomic outlook, due to new products and the investments made in the commercial organisations,
the Group expects to be able to achieve an improvement in the second half of the year, and to closethe year pursuing its trend of growth in revenues and recovery in profitability to levels substantially inline with 2018.
***
Based on the declarations by the Directors and the information available to the company, the Board ofDirectors verified that the new directors Vera Negri Zamagni and Angelo Busani met the requirementsof honourability and independence, and that there were no reasons for ineligibility or incompatibility, asrequired by the current regulations and the Self-Governance Code.
The Board of Statutory Auditors verified the correct application of the criteria and procedures ofverification adopted by the Board to assess the independence of the new directors.
The Board of Directors also verified, based on the audits conducted by the Board of Statutory Auditors,
that there were no reasons for ineligibility or incompatibility and that the requirements ofprofessionalism and honourability pursuant to Ministerial Decree no. 162 of 30 March 2000, as well as
the requirements of independence set out by law, were met by the new Statutory Auditors, listedbelow:◦ Salvatore Fiorenza, Chairman◦ Elena Lancellotti, Standing Auditor◦ Roberto Santagostino, Standing Auditor◦ Ines Gandini, Alternate Auditor◦ Eugenio Burani, Alternate Auditor◦ Patrizia Cornale, Alternate Auditor***Finally, the interim report on operations at 31 march 2019 is not subject to auditing, and will beavailable to anyone who requests it at the company headquarters or at Borsa Italiana S.p.A.
(www.borsaitaliana.it), on the “eMarket STORAGE” instrument, managed by Spafid Connect S.p.A.,
and may also be consulted on the company’s website www.datalogic.com (Investor Relations section),in accordance with the terms set out by law.
***
The manager responsible for preparing the company’s financial reports – Marco Carnovale – declares,
pursuant to paragraph 2 of Art. 154-bis of the Consolidated Finance Act, that the accounting
information contained in this press release corresponds to the document results, books andaccounting records.
***The hereby document contains forward-looking statements related to future events and operating,economic and financial results of the Group. These forward-looking statements include risks anduncertainties, since they may depend by future events and developments. Final results may differ
significantly from those contained in the above-mentioned forecasts owing to a number of factors, themajority of which are beyond the Group’s control.

Reclassified Income Statement at 31 March 2019 – Euro/000

Reclassified Balance Sheet at 31 March 2019 () – Euro/000Net Financial Position at 31 March 2019 – Euro/000

1 EBITDA(Earnings Before Interest, Taxes, Depreciation and Amortization): this is an economic
indicator that is not defined in the IFRSs, but used by the company’s management to monitor andassess its operating performance, as this indicator is not influenced by the volatility deriving from theeffects of the different criteria for determining taxable income, the amount and characteristics of capital
employed, as well as the related amortisation and depreciation policies. This indicator is defined byDatalogic as Profit/Loss for the period before depreciation/amortisation of tangible and intangible
assets, non-recurring costs, financial income and expense and income taxes.

2 The reclassified Income Statement and Balance Sheet show measures used by the Management tomonitor and assess the financial performances of the Group. Given that the composition of thesemeasures is not regulated by the reference accounting standards, even if they are directly reconcilable
to the IFRS statements, they are not subject to any audit procedure by the Independent Auditors.