Annual Report 2023

Annual Report 2023

Table of contents
Letter to ShareholdersHighlights 2023
Consolidated Annual Financial Report at December 31, 2023
Datalogic Group Structure
Composition of Corporate Bodies
Report on OperationsGroup Financial Statements
Explanatory Notes to the Consolidated Financial Statements
Annual Statutory Financial Report at December 31, 2023
Parent Company Financial Statements
Explanatory Notes to the Financial Statements
AnnexesCertifications pursuant to Article 81-ter of Consob Regulation no. 11971
of May 14, 1999, as subsequently amended and supplemented(Annexes 1a and 1b)Consolidation scope (Annex 2)
Reconciliation of Alternative Performance Indicators (Annex 3)
Restatement 2022 (Annex 4)
List of investments in subsidiaries and affiliates at December 31, 2023
(Annex 5)
Independent Auditors’ Reports (Annexes 6a and 6b)Board of Statutory Auditors’ Report (Annex 7)

4
7
19
20
22
23
55
65
131
133
143
189
190
192
194
195
196
197
208

DISCLAIMER
This document contains forward-looking statements relating to future events and operating, income and financial results of the Group. These forecasts have by nature an element of risk and uncertainty, as they depend on
the materialisation of future events and developments. Actual results may differ even significantly from those
disclosed due to a variety of factors, most of which beyond the Group’s control.
The accompanying consolidated financial statements of Datalogic Group constitute a non-official version which
has not been prepared in accordance with the provisions of the Commission Delegated Regulation (EU) 2019/815.

Gruppo Datalogic 2023

3

Shareholders,
We emerge from a year dominated by great uncertainty. We have seen geopolitical tensions escalate,with no clear peaceful solution in sight, and a steadyincrease in inflation, though showing some improvement towards year-end. This has led to a worldwide
hike in borrowing costs and subsequently reduced
investment in our key target markets. A mix resulting in decreased demand and orders across our entire Group, aligning with what our competitors areexperiencing. This had negative effects on last year’s
performance measures, with revenue from sales
totaling €536.6 million, reflecting a double-digit decrease versus 2022.
Despite the drop in revenue, 2023 saw an improvement in industrial margins, with a 1.7 p.p. recovery
on EBITDA, up from 40.1% in 2022 to 41.8% in 2023,
thanks to mix, pricing, and productivity dynamics(e.g., optimised material and logistics costs).
Adjusted EBITDA amounted to €49.5 million, downfrom €80.3 million in the prior year, with an EBITDA
margin of 9.2% (12.3% in 2022).
The result reflects our major efforts to contain
operating expense by optimizing costs and scaling back on discretionary spending, as well as ourcontinuous investment in R&D, with a cash-out of
12.4% of sales to drive forward the Group’s strategic projects.

4

Gruppo Datalogic 2023

In 2023, the sales force was reorganised by businessline into two divisions: Industrial Automation (IA), targeting Factory Automation, and Data Capture, which
focuses on promoting barcode readers in the Retail,Logistics, Healthcare, and Manufacturing sectors.
Despite the challenging economic climate and thetemporary deferral of Capex investment by our
key clients, we anticipate a highly positive turnaround beginning in the latter half of 2024. I am referring to the transition from manned checkouts to
self-checkouts in the Retail world, investment in
airports post-Covid pandemic across all our geographies of operation, and the growth of electric in
the automotive sector.
Through its continued investment in R&D and thedevelopment of new high-tech products, Datalogic
is well positioned to seize the opportunities arisingfrom these new trends and extend its leadership. On
the technology front, we have outlined our 5-yearroadmap, which includes artificial intelligence anddecoding libraries, key algorithms to maintain ourleadership in automatic data identification.
In addition to ongoing investment in R&D, we prioritized investment in our people, delivering over
12,000 hours of training in 2023. We also implemented policies to attract and nurture talent, particularly
in R&D, offering dedicated career paths and benefits.

In conclusion, 2023 was also pivotal for the Group’s
Sustainability strategy, marked by the identificationof 10 priority ESG topics that will guide the organisation’s efforts and investment. We reaffirm our commitment as a sustainable company, as evidenced by
96% of our Group’s eligible revenue, aligning withthe goals of the European Taxonomy on sustainablefinance.
I’d like to extend my gratitude to our employees fortheir dedication and passion, particularly during
the challenges of 2023, to our business partners
and stakeholders for their continued belief in andsupport of our Company, and to our Founder andChairman for his forward-thinking and visionary
leadership.

Valentina Volta
Chief Executive Officer

Gruppo Datalogic 2023

5

Highlights 2023

Datalogic Highlights 2023

Our profile
VisionMissionShaping the future with intelligence and innovation.

We enable our customers to gain a competitive edge byoffering the most advanced Data Capture and ­Industrial
Automation products and solutions.

The Datalogic Group is a global technology leader inthe segments of automatic data capture and industrial
automation. The Group, which boasts over 50 years ofhistory, is specialised in the design and production of
barcode readers, mobile computers, detection, measurement and safety sensors, machine vision and laser
marking systems and RFID. The Group’s solutions improve the efficiency and quality of processes, along theentire value chain, in the Retail, Manufacturing, Transportation & Logistics and Healthcare sectors. D­ atalogic
is a strong and steadily expanding business, thanks
to the vigorous R&D activity that marks its lines ofd­evelopment. The Group’s barcode reading systems
are used in over half of the world’s supermarkets andretail outlets, as well as in major airports, manufacturing industries and many large hospital complexes,
and help make the work of most logistics and shipping
companies more agile and functional. The Group employs approximately 2,910 people worldwide, with offices in 29 countries, manufacturing plants and repair
centres in the United States, Italy, Slovakia, Hungary,Vietnam, China and Australia, and R&D centres in Italy,
the United States, China and Vietnam, with a portfolio
of approximately 1,200 patents and patent applications.

Transition from “laser” to“image”. Datalogic becomes thetechnology leader in barcode
reading■ Entry into the “Mobile
Computers” market with theacquisition of IDWare Mobile
Computing■

Establishment of theCompany, based on asensor-related productportfolio

Expansion of the
product portfoliowith barcode reading
applications andtechnologies

1972

1974

■
■

8

Gruppo Datalogic 2023

First baggage sorting
system based on
barcode reading
installed at Linate(Milan) airport in 1984

1988
1997

Values rooted in time
OWNERSHIP

FOCUS ON RESULTS

We think and act
as if Datalogic is our own

We accomplish what we
set out to do

EFFICIENCYREALISM

We manage the company’s expenses
as if they were our own

We face reality and fix
what is wrong

NO SHORTCUTS

TOGETHERNESS

We never compromise
on strategy, culture, or achievement of results

We work together as a team to solve
seemingly unsolvable problems

New operating modelwith two new divisions:
Data Capture &Industrial Automation■ Entry into the Euronext
Tech Leaders■ Entry into the sharecapital of Oversonic
Robotics■

Listing on the Milan Stock
Exchange■ Further expansion throughacquisitions (e.g. PSC, Laservall,
Informatics, Accu-Sort)■ Expansion of the Group:
Vietnam, Slovakia, Hungary
■

2001
2012

50th anniversary
Acquisition of MD
Microdetectors■ Acquisition of Pekat■ Start of the path
towards “Solutions”■

First on-counter“imaging” scannerlaunched on themarket in 2012

■

2021
2022

Today

2023

Gruppo Datalogic 2023

9

Datalogic Highlights 2023

Our strategy
Goal Become a billion revenue

company in the long termwith increasing profitability

10Gruppo Datalogic 2023

Scope
 Enhance hardware offerwith software, driving
efficiency in Data Capture
and Industrial Automation
applications in Retail,
T&L, Healthcare andManufacturing verticals.
 Consolidate position in
Europe and become a strong
player in North America.
 Grow our presence in APAC.

Advantage
 Leverage on a wide

portfolio of products
and services to provide
Customers with innovativeand easy-to-integrate
solutions along the entire
flow of operations.

The Group’s global
footprint

13 Manufacturing & Repair sites
11 R&D centres and 3 DL Labs
Oﬃces in 29 countries

Gruppo Datalogic 2023

11

Datalogic Highlights 2023

A leader in automatic identification andindustrial automation with a comprehensive
and high-performance range of solutions
Advanced technology, robust and ergonomic design, sustainable production and materials. These are the signature features of Datalogic Group’s products, which enable

12

Gruppo Datalogic 2023

the Company to meet the needs of its customers in thetarget markets. A wide range of barcode readers complemented by safety products, laser markers and sensors.

Datalogic shareperformance
Datalogic S.p.A. has been listed on the Italian Stock Exchange since 2001 - Euronext STAR Milan segment (High
Requirements Shares Segment) of the Euronext Milan
Market of Borsa Italiana, which includes medium-­sizedcompanies with a capitalisation between €40 millionand €1 billion that are committed to meeting standards of excellence. In 2023, Datalogic S.p.A. joined theEuronext Tech Leaders, the segment comprising over

120 European companies listed on the high-growthEuronext markets and recognised leaders in the technology sector.
In 2023, the share was down by 18.8%. It reached ahigh of €9.840 per share on January 18, 2023 and a lowof €5.255 on October 25, 2023. Average daily volumes
traded in 2023 were approximately 112,000 shares, inline with the average of 110,000 in the prior year.

TREASURY SHARES

8.21%

STOCK EXCHANGE 2023
SEGMENTEURONEXT STAR MILAN – EURONEXT MILANBLOOMBERG CODE

DAL.IM

REUTERS CODE

DAL.MI

FREE FLOAT

2023 LOW

5.255 EURO (October 25, 2023)

2023 HIGH

9.840 EURO (January 18, 2023)

CAPITALISATION

395.10 MN EURO at December 31, 2023

26.94%HYDRA S.P.A.

64.85%

14.0

2,800

13.0

2,600

12.0

2,400

11.0

2,200

10.0

2,000

9.0

1,800

8.0

1,600

7.0

1,400

6.0

1,200

5.0

1,000

4.0

800

3.0

600

2.0

400

1.0

200

0
01/01/23

01/03/23
Prices01/05/23

01/07/23

01/09/23

01/11/23

Volumes (/000)

Prices (€)

NUMBER OF SHARES 58,446,491 (of which 4,800,000 treasury shares)

0
01/01/24    

Volumes

Gruppo Datalogic 2023

13

Datalogic Highlights 2023

2020

2020

2021*

2022

2023

0

45.9 9.2%

20

30
20
10
0

2019**

2020

2021

2022

2023
* % on revenue** restated14

13.9 2.9%4080.3 12.3%

80

85.7 14.3%

50

58.3 12.2%

100

92.0 15.7%

60

Gruppo Datalogic 2023

2019

2020

2021

2022

9.5 1.8%

NET PROFIT(MN. EURO)*

120

0

2023

* % on revenue** gross of capitalisation effects R&D*** restated50.3 8.6%

EBITDA(MN. EURO)*

2021

30.1 4.6%

2019** restated40

2022***

10

100

60

66.7 12.4%

2019***

20

200

0

30

63.9 9.8%

300

39.5 6.6%

400

40

63.0 13.1%

500

63.5 10.8%

50

536.6

600

654.6

60

597.8

700

479.8

R&D (MN. EURO)***

585.8

REVENUE (MN. EURO)57.6 9.6%2023 Key Figures2023* % on revenue

NET FINANCIAL POSITION(MN. EURO)

120

60

20
0

-20

-42.0

-26.1

0

-35.3

8.2

20

13.4

40

71.0 13.2%

40

47.8 10.0%

60

75.1 12.3%

80

84.9 14.2%

100

109.1 16.7%

NET TRADE WORKING CAPITAL(MN. EURO)*

-40
-60

2019

2020

2021

2022

2019

2023

2020

2021

2022

2023

* % on revenue

1,00

0,4

0,80

0,3

0,60

0.69
0.52

0,20
0

0

2019

2020

2021

2022

2023

2019

2020

0.18

0.17

0,1

0,40

0.24

0,2

0.87

0,5

0.30

1,20

0.30

0,6

0.30

EARNINGS PER SHARE(EPS - EURO)

0.30

DIVIDEND PER SHARE(DPS - EURO)

2021

2022

2023

Gruppo Datalogic 2023

15

Datalogic Highlights 2023

2023 REVENUE
Total 536.6 MN. Euro
44.3%
EMEAI
(Italy excluded)

3.2%
Informatics

33.1%
Revenue by division*

96.9%
Datalogic

Revenue bygeographical area

Americas

12.6%
APAC
* -0.1% intersegment adjustments.

10.0%
Italy

2023 EMPLOYEES
Total 2,910
61.5%

58.2%

Men

EMEAI

16.3%
Americas

Employees bygeographical area

25.4%
APAC

16

Gruppo Datalogic 2023

Employees
by gender

38.5%
Women

INCOME STATEMENTMN EURO

2019
Restated

2020

2021
Restated

2022
Restated

2023

REVENUE

585.8

479.8

597.8

654.6

536.6

EBITDA

92.1

58.3

85.7

80.3

49.5

% on revenue

15.7

12.2

14.3

12.3

9.2

EBIT

62.7

18.4

47.0

40.9

9.6

% on revenue

10.7

3.8

7.9

6.3

1.8

PROFIT

50.3

13.9

39.5

30.1

9.5

8.6

2.9

6.6

4.6

1.8

HEADCOUNT TREND

3,074

2,826

2,990

3,069

2,910

DIVIDENDPER SHARE (EURO)

0.30

0.30

0.17

0.30

0.30

DIVIDENDS DISTRIBUTED(MN EURO)

28.7

17.0

9.6

16.9

17.0

% on revenue

Gruppo Datalogic 2023

17

Datalogic Highlights 2023

STATEMENT OF FINANCIAL POSITIONMN EURO

2019

2020

2021

2022

2023

FIXED ASSETS

391.1

384.9

457.3

484.2

463.2

CURRENT ASSETS

230.5

173.1

253.3

253.8

185.7

CURRENT LIABILITIES-184.2-150.7-206.5-183.7-145.1

NET WORKING CAPITAL

46.2

22.4

46.8

70.1

40.5

NET CAPITAL EMPLOYED

390.8

362.1

447.8

493.6

446.5

EQUITY

404.2

370.4

421.7

451.6

411.1

NET FINANCIAL POSITION

13.4

8.2

-26.1

-42.0

-35.3

CAPEX*

38.0

42.6

26.5

26.3

26.4

6.5

8.9

4.4

4.0

4.9

NET TRADE WORKING CAPITAL

75.1

47.8

84.9

109.1

71.0

% on revenue

12.8

10.0

14.2

16.7

13.2

ROE %

12.9

3.6

10.0

6.9

2.2

DEBT/EQUITY %

-3.3

-2.2

6.2

9.3

8.6

% on revenue* net investment value, excluding IFRS16

18

Gruppo Datalogic 2023

Consolidated Annual
Financial Reportat December 31, 2023

Consolidated Annual Financial Report at December 31, 2023

Datalogic Group Structure
Datalogic S.p.A.
R4i S.r.l.
(20%)(50.0%)CAEN RFID S.r.l.
(20%)

Datalogic IP Tech S.r.l.

Datasensor GmbH(30%)

Datalogic USA, Inc.
(100%)

Datalogic S.r.I.
(100%)

Datalogic (Shenzhen)
Industrial Automation Co.,
Ltd. (100%)

Datalogic Automation AB(Sweden)(20%)(99.9%)(50.0%)

Datalogic Singapore
Asia Paciﬁc Pte. Ltd.
(100%)(0.1%)

Datalogic Technologias
de Mexico
S. de R.L. de C.V.
(99.999%)

Datalogic (Shenzhen)
Industrial Automation Co. Ltd.
(Shangai Branch)(0.001%)

Datalogic do Brasil
Ltda.

Datalogic (Shenzhen)
Industrial Automation Co. Ltd.
(Beijing Branch)

Datalogic Singapore
Asia Paciﬁc Pte. Ltd.
(Korea Branch)Suzhou Mobydata
Smart System Co. Ltd.
(51%)

Legal entity

ITALY/EMEA

20   Datalogic Group

BranchAMERICASAPAC

IP TECHREAL ESTATEOTHER

Datalogic Real Estate UK
Ltd. (100%)

Datalogic S.r.l. UK

Datalogic Australia
Pty, Ltd.
(100%)

Datalogic Vietnam LLC(100%)
Datalogic Slovakia S.r.o.
(100%)

Datalogic Real EstateFrance Sas(100%)

Datalogic S.r.l.
(Succursale en France)

Datalogic S.r.l.
(Sucursal en España)

Datalogic Hungary Kﬅ.
(100%)
Datalogic S.r.l. Benelux

Informatics Holdings,
Inc. (100%)

Datalogic Japan Co. Ltd(100%)
Datalogic S.r.l. Italian Filial

Datasensing S.r.l.
(100%)

Wasp Barcode
Technologies, Ltd.
(100%)

Datalogic S.r.l.
(Spòlka z ograniczona
odpowiedzialnoscia)
oddzial w Polsce

Datasensing S.r.l.
(Succursale en France)

Datalogic S.r.l. Merkezi Italya
Istanbul Merkez Subesi
Datalogic S.r.l.
Niederlassung
Deutschland

Datalogic S.r.l.
incorporated
in Bologna Italy

Datasensing
Ibérica S.A.U.
(100%)

M.D. Micro Detectors(Tianjin) Co. Ltd.
(100%)

Pekat odštěpný závod

Pekat S.r.l.
(100%)

Datalogic S.r.l.
Organizačná zložka
zahraničnej
osoby pre Slovensko

Datalogic Scanning Eastern
Europe GmbH (Germany)(100%)

Datalogic S.r.l.
Sucursala Bucuresti

Datalogic S.r.l.
Niederlassung Central Europe

Datalogic Group   21Consolidated Annual Financial Report at December 31, 2023

Compositionof Corporate Bodies
Board of Directors(1)Romano Volta

Executive Chairman(2)Valentina Volta
Angelo Manaresi
Chiara Giovannucci Orlandi
Filippo Maria Volta
Vera Negri Zamagni
Maria Grazia Filippini
Pietro Todescato

Chief Executive Officer(2)Independent Director
Independent Director
Non-Executive Director
Independent Director
Independent Director
Non-Executive Director(3)Board of Statutory Auditors(4)Diana Rizzo

Chairmain

Elena Lancellotti

Standing Statutory Auditor

Roberto SantagostinoStanding Statutory Auditor

Giulia De Martino
Eugenio Burani
Patrizia Cornale

Alternate Statutory Auditor
Alternate Statutory Auditor
Alternate Statutory Auditor

Control, Risks, Remuneration and Appointments Committee
Angelo Manaresi
Chairman
Chiara Giovannucci Orlandi
Vera Negri Zamagni

Independent Director
Independent Director

Independent Auditors(5)Deloitte & Touche S.p.A.

T he Board of Directors will remain in office until the Shareholders’ Meeting called to approve the financial statements at December 31, 2023.
Legal representative before third parties.
(3)
On July 1, 2023, Pietro Todescato left the Group, due to age limits, while continuing to serve as a board member of Datalogic S.p.A.
(4)
The Board of Statutory Auditors will remain in office until the Shareholders’ Meeting called to approve the financial statements at
December 31, 2024.
(5)
Deloitte & Touche S.p.A. were appointed Independent Auditors for the nine-year period from 2019 to 2027 by the Shareholders’ Meeting heldon April 30, 2019 and will remain in office until the Shareholders’ Meeting called to approve the financial statements at December 31, 2027.
(1)(2)

22   Datalogic GroupReporton Operations

Consolidated Annual Financial Report at December 31, 2023

Introduction
This Consolidated Annual Financial Report at December 31, 2023 was prepared in accordance with Article 154-terof the TUF (Consolidated Law on Finance) and was drawn up in compliance with the International AccountingStandards (IAS/IFRS) adopted by the European Union.
The amounts shown in the tables of the Report on Operations are expressed in Euro thousands, while the explana­
tory notes are expressed in Euro millions.

Group profile
Datalogic S.p.A. and its subsidiaries (“Group” or “Datalogic Group”) is a global technological leader in the automatic data capture and process automation markets. The Group is specialised in the design and productionof barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking
systems and RFID. Its pioneering solutions help increase the efficiency and quality of processes along the entire
value chain in the Retail, Manufacturing, Transportation & Logistics and Healthcare segments.

Highlights for the year
The following table summarises the Datalogic Group’s key operating and financial results at December 31, 2023
and the comparison with the prior year.
31.12.2023% on
Revenue31.12.2022% on
Revenue

Change% chg.

% chg.
Net FX

Revenue

536,617100.0%

654,632

100.0%(118,015)-18.0%-16.9%

Adjusted EBITDA

49,4569.2%

80,286

12.3%(30,830)-38.4%-37.5%

Adjusted EBIT

16,883

3.1%

49,096

7.5%(32,213)-65.6%-64.5%

EBIT

9,608

1.8%

40,935

6.3%(31,327)-76.5%-75.2%

Profit/(Loss) for the year

9,486

1.8%

30,126

4.6%(20,640)-68.5%-66.7%Net financial position (NFP)(35,321)(42,007)

6,686

The Group ended 2023 achieving sales Revenue of €536.6 million, down by 18.0% (-16.9% net FX) versus €654.6
million recorded in 2022.
Sales from new products (Vitality Index) in 2023 accounted for 7.4% of revenue (9.5% in fourth quarter 2023).
Adjusted EBITDA came to €49.5 million, down from €80.3 million in the prior year, accounting for 9.2% of sales(12.3% in 2022), negatively affected by the reduction in volumes, only partly offset by a positive mix and, to alesser extent, price effect, productivity improvement, and structural cost containment.

24   Datalogic Group

Adjusted EBIT amounted to €16.9 million, with a sales margin of 3.1% (7.5% in 2022).
Net profit for the year amounted to €9.5 million, down from €30.1 million recorded in 2022.
Net Financial Debt at December 31, 2023 stood at €35.3 million, an improvement of €6.7 million versus December 31, 2022.

Datalogic Group   25Consolidated Annual Financial Report at December 31, 2023

Alternative performance measures (NON-GAAP measures)Management uses certain performance measures, not identified as accounting measures under IFRS (NONGAAP measures), to provide a clearer picture of the Group’s performance. The measurement criterion applied by
the Group might not be the same as the one adopted by other groups and the measures might not be comparable with theirs. These performance measures, determined according to provisions set out by the guidelines on
performance measures, issued by ESMA/2015/1415 and adopted by Consob with communication no. 92543 ofDecember 3, 2015, refer only to the performance of the period related to this Consolidated Annual Financial Report and the comparison periods. The performance measures must be considered as supplementary and do notsupersede the information provided under the IFRS standards. The main measures adopted are described below.
 Special Items (or Non-Recurring Costs): income items arising from non-recurring events or transactions,
restructuring activities, business reorganization, write-downs of fixed assets, ancillary expense from acquisitions of businesses or companies or their disposals, including amortisation resulting from the recognitionof purchase price allocation, and any other event deemed by Management not to represent current businessactivity.
 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) or Gross Operating Margin:
profit/(loss) for the year from continuing operations before depreciation and amortisation of tangible andintangible fixed assets and rights of use, financials (including foreign exchange income and expense) andincome tax.
 Adjusted EBITDA or Gross Operating Margin: profit/(loss) for the year from continuing operations before
depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including
foreign exchange income and expense), income tax and Special Items, as defined above.
 EBIT (Earnings Before Interest, Taxes) or Operating Result: profit/(loss) for the year from continuing opera­
tions before financials (including foreign exchange income and expense) and income tax.
 Adjusted EBIT or Operating Result: profit/(loss) for the year from continuing operations before financials(including foreign exchange income and expense), income tax and Special Items, as defined above.
 Net Trade Working Capital: the sum of Inventory and Trade Receivables, less Trade Payables.
 Net Working Capital: the sum of Net Trade Working Capital and Other Current Assets and Liabilities including
Provisions for Current Risks and Charges.
 Net Invested Capital: the total of Current and Non-Current Assets, excluding financial assets, less Current
and Non-Current Liabilities, excluding financial liabilities.
 NFP (Net Financial Position or Net Financial Debt): calculated in accordance with the provisions of “Warning Notice no. 5/21” of April 29, 2021 issued by Consob and referring to ESMA guideline 32-382-1138 of March
4, 2021.
 Cash Flow from Operations: the sum of Adjusted EBITDA, changes in Net Trade Working Capital, expenditurein tangible and intangible fixed assets (excluding fixed assets under right of use recognised during the year
according to IFRS 16), tax paid, financial expense/income, changes in Other Current Assets and Liabilities,
and Special Items, as defined above, while excluding any other changes related to equity (such as dividend
distributions and/or the purchase of treasury shares), to transactions of an extraordinary nature, the repayment and/or taking out of bank loans and/or other financial items in the NFP, and any other transaction thatcannot be directly attributed to the Company’s business operations.

26   Datalogic GroupGroup reclassified income results
The following table shows the main items of the income statement for the year versus the prior year, the resultsof which were restated as required by IAS 1 following certain reclassifications of cost items from operating costs
to cost of goods sold and among the different uses of operating costs, for details of which reference is made toAnnex 4 of this document:
31.12.2023

31.12.2022
Restated

Change% chg.

Revenue

536,617100.0%

654,632

100.0%(118,015)-18.0%

Cost of goods sold

(312,242)-58.2%(392,123)-59.9%

79,881-20.4%

Gross Operating Margin

224,375

41.8%

262,50940.1%(38,134)-14.5%

Research and Development expense(65,296)-12.2%(60,742)-9.3%(4,554)

7.5%

Distribution expense(94,478)-17.6%(99,743)-15.2%

5,265

-5.3%

Administrative and General expense(49,904)-9.3%(54,926)

-8.4%

5,022

-9.1%

2,186

0.4%

1,998

0.3%

188

9.4%

(207,492)-38.7%(213,413)-32.6%

5,921

-2.8%

Adjusted EBIT

16,883

3.1%

49,096

7.5%(32,213)-65.6%

Special Items - Other (Expense) and Income(2,541)-0.5%(2,922)

-0.4%

381

-13.0%

Special Items - D&A from acquisitions(4,735)-0.9%(5,239)

-0.8%

504

-9.6%

EBIT

9,608

1.8%

40,935

6.3%(31,327)-76.5%Net Financials

1,295

0.2%

(2,877)

-0.4%

4,172

n.a.

Foreign exchange gains/(losses)

516

0.1%

(3,802)

-0.6%

4,318

n.a.

EBT

11,4192.1%

34,256

5.2%(22,838)-66.7%

Tax(1,933)-0.4%(4,130)

-0.6%

2,197

-53.2%

Profit/(Loss) for the year

9,486

1.8%

30,126

4.6%(20,640)-68.5%

EBIT

9,608

1.8%

40,935

6.3%(31,327)-76.5%

Special Items - Other (Expense) and Income

2,541

0.5%

2,922

0.4%

(381)

-13.0%

Special Items - D&A from acquisitions

4,735

0.9%

5,239

0.8%

(504)

-9.6%

Depreciation Tang. Fixed Assets and Rights of Use

16,0243.0%

17,911

2.7%(1,887)-10.5%

Amortisation Intang. Fixed Assets

16,5493.1%

13,279

2.0%

3,270

24.6%

Adjusted EBITDA

49,4569.2%

80,286

12.3%(30,830)-38.4%

Other (expense) income
Total operating costs and other expense

Datalogic Group   27Consolidated Annual Financial Report at December 31, 2023

Consolidated revenue amounted to €536.6 million at December 31, 2023, down by 18.0% versus €654.6 million
in 2022, with declines affecting all geographical areas.
The breakdown by geographical area of Group revenue for the year, compared with the prior year, is shown in thetable below:
31.12.2023%

31.12.2022%

Change% chg.

% chg.
Net FX

Italy

53,586

10.0%

62,181

9.5%(8,595)-13.8%-13.8%EMEAI (excluding Italy)

237,53344.3%

293,000

44.8%(55,468)-18.9%-18.7%

Total EMEAI

291,11954.3%

355,18154.3%(64,063)-18.0%-17.9%

Americas177,84833.1%

198,84230.4%(20,994)-10.6%

-8.9%

APAC

67,64912.6%

100,60915.4%(32,959)-32.8%-29.0%

536,617100.0%

654,632

100.0%(118,016)-18.0%-16.9%

Total revenue

EMEAI was down by 18.0% in 2023, with Italy down by 13.8%. Americas fell less with a 10.6% drop (-8.9% net
FX), while APAC declined more with a 32.8% drop (-29.0% net FX) versus the prior year.
The Gross Operating Margin, amounting to €224.4 million versus €262.5 million at December 31, 2022, improved as a percentage of sales, standing at 41.8% versus 40.1% in 2022, thanks to the positive trend in productmix, price effect, and productivity improvement, which offset the reduction in sales volumes.
Operating costs and other expense amounted to €207.5 million (€213.4 million at December 31, 2022); while decreasing in absolute value, they increased in terms of their percentage of sales from 32.6% to 38.7%, attributableespecially to research and development and distribution expense.
Research and Development expense, amounting to €65.3 million, increased by 7.5% versus December 31,
2022. Total monetary costs in R&D, before capitalisation and net of amortisation and depreciation (R&D CashOut), amounted to €66.7 million (€63.9 million in the prior year), with a percentage of sales of 12.4% (9.8% in2022).
Distribution expense amounted to €94.5 million and was down versus 2022 (€99.7 million in 2022), while thepercentage of revenue increased to 17.6% from 15.2% in the prior year.
Administrative and General Expense amounted to €49.9 million at December 31, 2023, down by 9.1% versus
2022, and up as a percentage of sales from 8.4% to 9.3%.
Adjusted EBITDA came to €49.5 million, with an adjusted EBITDA margin accounting for 9.2% of sales, down by
3.0 percentage points from 12.3% recorded in 2022, due to a reduction in volumes, only partly offset by a positivemix and, to a lesser extent, price effect, productivity improvement and structural cost containment.

28   Datalogic Group

Adjusted EBIT stood at 3.1% of revenue and amounted to €16.9 million (€49.1 million in 2022).
Net Financials closed with a positive €1.8 million, improving by €8.5 million versus December 31, 2022, as aresult of favourable trends in foreign exchange rate differences and the gains earned from the sale of the 15%minority interest in Solution Net Systems LLC (SNS).
Net profit for the year amounted to €9.5 million, or 1.8% of revenue (€30.1 million at December 31, 2022, or 4.6%of revenue).

Divisional income results for the year
Operating segments are identified based on operating reports used at the highest decision-making level to allocate resources and assess results.
The operating segments are shown below:
 Datalogic represents the Group’s core business and designs and produces barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID that help
increase the efficiency and quality of processes in the Retail, Manufacturing, Transportation & Logistics and
Healthcare segments, along the entire value chain.
 Informatics sells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium-sized companies.
The tables below show the comparison of Revenue and Adjusted EBITDA by Division in the year versus the prior year:
Revenue by division
31.12.2023%

31.12.2022%

Change% chg.

% chg.
Net FX

Datalogic

520,20796.9%

638,273

97.5%(118,066)-18.5%-17.3%

Informatics

16,977

3.2%

18,1982.8%(1,221)

-6.7%

-4.9%

Intersegment adjustments

(567)

-0.1%

(1,839)

-0.3%

1,272

536,617100.0%

654,632

100.0%(118,015)-18.0%-16.9%

Total revenue

Datalogic Group   29Consolidated Annual Financial Report at December 31, 2023

Adjusted EBITDA by division
31.12.2023% on
Revenue31.12.2022% on
Revenue

Change% chg.

Datalogic

45,9298.8%

77,86212.2%(31,933)-41.0%

Informatics

3,355

19.8%

2,672

14.7%

683

25.6%

Intersegment adjustments

172

Total Adjusted EBITDA

49,456(248)
9.2%

80,286420
12.3%(30,830)-38.4%

Datalogic division
The Datalogic division recorded sales revenue of €520.2 million at December 31, 2023, down by 18.5% versus
2022. The geographical area that most affected the decline was APAC, down by 32.8%, followed by EMEAI withan 18.0% decline, and Americas with an 11.5% decrease.
The division’s adjusted EBITDA amounted to €45.9 million, equal to 8.8% of sales (12.2% at December 31, 2022).
To better align with its strategic goals and prioritize product and solution offerings, starting from the first quarterof the current year, Datalogic reviewed its operating model and introduced two new Market Segments, which feature distinct sales models, customers with varying purchasing needs, and different stakeholders: Data Capture
and Industrial Automation.
Reflecting the new operating model, the revenue breakdown for the Datalogic Division is now presented by the
new segments, in place of the previous breakdown by Industries:
31.12.2023%

31.12.2022%

Change% chg.

% chg.
Net FX

Data Capture

320,15161.5%

397,743

62.3%(77,592)-19.5%-18.4%

Industrial Automation

200,05638.5%

240,53037.7%(40,474)-16.8%-15.6%

Total revenue

520,207100.0%

638,273

100.0%(118,066)-18.5%-17.3%

Data Capture
The Data Capture segment, with 61.5% of divisional sales (62.3% at December 31, 2022), fell by 19.5% versus theprior year, a decline seen across all geographical areas.
Industrial Automation
The Industrial Automation segment declined by 16.8% in 2023, also falling across all geographical areas, in APAC
in particular.

30   Datalogic GroupInformatics division
The Informatics Division reported sales of €17.0 million, down by 6.7% versus the prior year.
The adjusted EBITDA margin in the year stood at 19.8%, improving by 5.1% versus 14.7% in the prior year.

Datalogic Group   31

Consolidated Annual Financial Report at December 31, 2023

Group reclassified income results for the fourth quarter
The following statement summarises the Datalogic Group’s key income and financial results of fourth quarter
2023 versus the same quarter of the prior year:
Quarter ended
31.12.2023% on
Revenue31.12.2022
Restated% on
Revenue

Change% chg.

% chg.
Net FX

119,592

100.0%

178,136

100.0%(58,544)-32.9%-30.9%

Adjusted EBITDA

6,159

5.2%

23,99813.5%(17,839)-74.3%-71.9%

Adjusted EBIT

(2,582)-2.2%

15,833

8.9%(18,415)-116.3%-113.0%EBIT(4,025)-3.4%

13,475

7.6%(17,500)-129.9%-126.0%

Profit/(Loss) for the period(1,269)-1.1%

14,7998.3%(16,068)-108.6%-105.0%

Revenue

In fourth quarter 2023, revenue decreased by €58.5 million in absolute terms and by 32.9% in percentage terms
to €119.6 million.
The breakdown of Group revenue by geographical area in fourth quarter 2023 versus the same quarter of 2022
is shown below:
Quarter ended
31.12.2023%

31.12.2022%

Change% chg.

% chg.
Net FX

Italy

10,7939.0%

15,492

8.7%(4,699)-30.3%-30.3%EMEAI (excluding Italy)

52,97044.3%

83,50746.9%(30,537)-36.6%-36.2%

Total EMEAI

63,763

53.3%

98,99855.6%(35,235)-35.6%-35.3%

Americas42,95835.9%

51,73229.0%(8,774)-17.0%-12.6%

APAC

12,871

10.8%

27,406

15.4%(14,535)-53.0%-49.9%

119,592

100.0%

178,136

100.0%(58,544)-32.9%-30.9%

Total revenue

Sales in the fourth quarter dropped across all geographical areas, especially in APAC and EMEAI.
Adjusted EBITDA in the quarter came to €6.2 million with a revenue margin of 5.2% (13.5% in fourth quarter2022).
In the quarter, the Group posted a net loss of €1.3 million (-1.1% of sales) versus a profit of €14.8 million in fourth
quarter 2022 (8.3% of sales).

32   Datalogic GroupDivisional income results for the fourth quarter
The tables below show the trend in Revenue and Adjusted EBITDA by division in fourth quarter 2023 versus thesame quarter of 2022:
Revenue by division
Quarter ended
31.12.2023%

31.12.2022%

Change%% chg.
Net FX

Datalogic

115,40796.5%

174,078

97.7%(58,671)-33.7%-31.9%

Informatics

4,343

3.6%

4,464

2.5%

(121)

-2.7%

2.1%

Intersegment adjustments(158)-32.9%-30.9%

Total revenue

119,592(406)
100.0%

178,136248
100.0%(58,544)

Adjusted EBITDA by division
Quarter ended
31.12.2023% on
Revenue31.12.2022% on
Revenue

Change% chg.

Datalogic

4,932

4.3%

23,14613.3%(18,214)-78.7%

Informatics

1,211

27.9%

859

19.2%

352

41.0%

Adjustments

16

Total Adjusted EBITDA

6,159

(7)
5.2%

23,99823
13.5%(17,839)-74.3%

Datalogic division
In fourth quarter 2023, the Datalogic division reported sales of €115.4 million, down by 33.7% versus the samequarter of 2022.
The division’s adjusted EBITDA amounted to €4.9 million, or 4.3% of sales, a deterioration from the 13.3% recorded in fourth quarter 2022.

Datalogic Group   33Consolidated Annual Financial Report at December 31, 2023

The breakdown of Datalogic Division revenue by the new segments is shown below:
Quarter ended
31.12.2023%

31.12.2022%

Change%% chg.
Net FX

Data Capture

69,72460.4%

109,49462.9%(39,770)-36.3%-34.3%

Industrial Automation

45,682

39.6%

64,58437.1%(18,902)-29.3%-27.8%

115,407100.0%

174,078

100.0%(58,671)-33.7%-31.9%

Total revenue

Data Capture
The Data Capture segment, with 60.4% of divisional sales (62.9% in fourth quarter 2022), fell by 36.3% versus
fourth quarter 2022. The decline is witnessed across all geographical areas.
Industrial Automation
The Industrial Automation segment recorded a 29.3% decline in fourth quarter 2023, dropping across all geographical areas, APAC in particular.

Informatics division
In fourth quarter 2023, the Informatics Division’s revenue dropped by 2.7%. EBITDA amounted to €1.2 million,
accounting for 27.9% of revenue (€0.9 million in fourth quarter 2022, 19.2% of revenue).

34   Datalogic GroupGroup reclassified financial position for the year
The following table shows the main financial and equity items at December 31, 2023 versus December 31, 2022.
31.12.2023

31.12.2022

Change% chg.

Intangible fixed assets

88,84591,971(3,126)-3.4%

Goodwill

205,352

212,043(6,691)-3.2%

Tangible fixed assets

105,486

114,557(9,071)-7.9%

Financial assets and investments in associates

5,418

8,679

(3,261)-37.6%

Other fixed assets

58,10356,975

1,128

2.0%

Fixed Assets

463,204

484,225(21,021)-4.3%

Trade receivables

52,09391,299(39,206)-42.9%

Trade payables(83,515)(112,054)

28,539-25.5%

Inventory

102,462

129,824(27,362)-21.1%Net Trade Working Capital

71,040109,069(38,029)-34.9%

Other current assets

31,11532,681(1,566)-4.8%

Other liabilities and provisions for current risks(61,624)(71,605)

9,981-13.9%Net Working Capital

40,531

70,145(29,614)-42.2%

Other non-current liabilities(46,327)(49,440)

3,113

-6.3%

Post-employment benefits(5,759)(6,163)

404

-6.6%

Provisions for non-current risks(5,197)(5,193)(4)

0.1%

Net Invested Capital

446,452

493,574(47,122)-9.5%

Equity(411,131)(451,567)

40,436-9.0%

Net financial position (NFP)(35,321)(42,007)6,686-15.9%Net Invested Capital, at €446.5 million (€493.6 million at December 31, 2022), shows an overall decrease of€47.1 million, of which €29.6 million on Net Working Capital and €21.0 million on Fixed Assets.
Fixed Assets, amounting to €463.2 million (€484.2 million at December 31, 2022), dropped by €21.0 million, due
mainly to the decrease in Tangible and Intangible Fixed Assets from amortisation and depreciation in the year, andto negative translation differences for €9.0 million.
Net Trade Working Capital at December 31, 2023 amounted to €71.0 million and decreased by €38.0 million
versus December 31, 2022. Through meticulous management of working capital components, the percentage asa proportion of sales decreased from 16.7% at December 31, 2022 to 13.2% at December 31, 2023.

Datalogic Group   35Consolidated Annual Financial Report at December 31, 2023

The Net Financial Position at December 31, 2023 stood at a negative €35.3 million.
The cash flows that led to the change in the consolidated Net Financial Position versus December 31, 2022 aredetailed below.
31.12.2023

31.12.2022

Change(42,007)(26,060)(15,947)

Adjusted EBITDA

49,45680,286(30,830)

Change in net trade working capital

38,029(24,190)

62,219Other changes in net working capital and special items(20,248)(5,949)(14,299)

Net expenditure(26,387)(26,289)(98)

Tax paid(6,052)(7,338)

1,286

Net financial income (expense)(2,281)(6,679)4,398

Cash Flow from Operations

32,517

9,841

22,676

Dividend distribution(17,034)(16,934)(100)

Sale (Purchase) of treasury shares(19,771)-(19,771)

6,532

5,719

813

-

(15,994)

15,994

Other changes

4,442

1,421

3,021

Change in Net Financial Position

6,686(15,947)

22,633(35,321)(42,007)

6,686

Net Financial Position (Net Financial Debt) at beginning of year

Net disposals (acquisitions) of financial assets
Acquisitions

Net Financial Position (Net Financial Debt) at year end

Cash Flow from Operations closed at a positive €32.5 million at December 31, 2023, improving by €22.7 million
versus €9.8 million at December 31, 2022. The positive change is attributable mainly to the cash generation of
Net Working Capital and to a positive effect from lower outlays of financial expense.
Financial debt stood at €35.3 million, improving by €6.7 million.

36   Datalogic GroupAt December 31, 2023, the Net Financial Debt is broken down as follows:
31.12.2023

31.12.2022

70,629107,469

B. Cash equivalents-

13

C. Other current financial assets--

D. Liquid assets (A) + (B) + (C)70,629107,482

E. Current financial debt

5,421

36,612

E1. Of which lease payables

3,863

4,164

Current portion of non-current financial debt

14,42833,810G. Current Financial Debt (E) + (F)19,84970,422

H. Current Net Financial Debt (Financial Position) (G) - (D)(50,780)(37,060)

Non-current financial debt

86,101

79,067I1. of which lease payables

7,767

11,962

J. Debt instruments--

K. Trade and other non-current payables--

L. Non-Current Financial Debt (I) + (J) + (K)86,101

79,067

M. Total Net Financial Debt/(Net Financial Position) (H) + (L)35,32142,007

A. Cash funds

F.

I.

At December 31, 2023, the Group had outstanding financial credit lines of approximately €281.0 million, of whichapproximately €193.0 million committed. Undrawn and readily available financial lines amounted to €188.0 million.
Indirect and conditional debt at December 31, 2023 is represented exclusively by the Group’s provision forpost-employment benefits of €5.8 million.

Datalogic Group   37Consolidated Annual Financial Report at December 31, 2023

Research and development
In the Group’s market of operation, one of the key competitive factors is the ability to generate and implement
innovative solutions.
Innovation at Datalogic is about developing resources, skills, technologies and processes within our community.
Innovation is concurrently nurtured by a fertile network of partnerships with strategic players who share an Open
Innovation path aimed at generating ideas, developing innovative solutions and transferring them to products.
In recent years, Datalogic’s market of operation has undergone sweeping changes, especially in the retail andlogistics segments. Digital Transformation and e-commerce are trends that have gained strong momentum inthe pandemic period, thanks also to the rapid advancement of technology, artificial intelligence in particular.
The wide diversification of Datalogic products equipped with state-of-the-art industrial and mobile connectivity
solutions and with broad configuration flexibility has enabled it to intercept and drive these changes by anticipating latent customer needs. Constantly investing in research and innovation is crucial to preserve competitivenessand expand in this rapidly evolving landscape, keeping the Customer at the heart of the innovation process.
The processes of innovation and product development are based on the “Technology Roadmap” and the “Product
Roadmap” stemming from accurate medium and long-term planning and annually updated by Group Management. The R&D department employs over 400 resources in Datalogic. The results of the innovation processes
are protected through patents, with the Group’s portfolio consisting of approximately 1,200 patents and patentapplications at end 2022.
Throughout 2023, R&D completed the final redesigns related to electronic component shortages and focused on
developing new product lines.
The following is a brief description of the main new product rollouts in the year.

Handheld scanners
 Quickscan 2200 Series: Quickscan family of linear scanners for data identification and tracing in the Retailmarket at the checkout point. Data tracing is performed through recognition and reading of 1D Symbologies,
even on damaged or poorly printed labels.
 Powerscan 9600 Series XLR and DPX: three new models in the Powerscan family of scanners alreadyrevamped last year, for data identification and tracing in the Retail, Transportation & Logistics and Manufacturing markets, available in Corded and Cordless models, both with and without Display. Data tracing is performed through recognition and reading of 1D and 2D symbologies now even remotely with the Extra Long
Range model or on marked parts with the special model for Direct Part Marking.
 Gryphon 4500 Fixed: family of compact scanning modules for the Retail market and as OEM barcode reader
or document scanning, available in USB-only version, RS-232 version and USB+RS-232 version. Data tracing
is performed through recognition and reading of 1D and 2D symbologies.

Mobile computing
 Memor 11: handheld terminal for 1D and 2D code reading for retail operations and inventory management,
inbound and outbound warehouse management logistics, production tracing, quality control, and transportation and logistics applications, available in Wi-Fi only or Wi-Fi/Cellular models.

Stationary retail scanners
 Magellan 9600i and 9900i are a unique solution to make self-checkout lanes unmanned, addressing problems such as operational errors and theft. The Magellan 9600i and 9900i, boasting an innovative design, ad-38   Datalogic Groupvanced ergonomics, and exceptional scanning performance, also integrate AI capabilities aimed at improving
the checkout process and preventing loss.

Stationary industrial scanners
 Blade Short Range: new generation of compact industrial 1D barcode readers, including Blade 100 and Blade
200, for factory and warehouse automation operations, easily integrated and installed. Data tracing is performed through recognition and reading of 1D symbologies.
 Sensors, safety devices and artificial vision
 P3x Smart cameras offer higher performance with 5MP resolution models, twice the speed of the previous
series, and full compatibility with accessories and support for the latest IMPACT 13.3.0 software release.
 S3N Series includes miniature photoelectric sensors that offer state-of-the-art detection functions, solidmechanics, and cutting-edge parameterization options such as Teach-in button and intelligent IO-Link. Featuring state-of-the-art mechanical features and superior optical performance, the S3N sensor is the perfectsolution for a variety of industrial applications, from automotive to food and beverage packaging. The S3Nline is enhanced with T5x models for the detection of transparent objects, equipped with coaxial optical architecture, based on TIR (Total Internal Reflection) lens, and an innovative received signal processing system.
 Smart-VS+ improves detection performance and image management capabilities. With up to 20 learning
dataset images, higher accuracy and faster response time, Smart-VS+ offers better machine learning assistance, increased speed, versatility and flexibility for various automation applications.

Human resources and industrial relations
The HR Management is located in Bologna at the Lippo di Calderara HQ. The Chief People Officer is assisted by
the HR unit that comprises the Centre of Expertise (COE), HR Business Partners and Regional Heads of HR, eachwith well-defined responsibilities.
The Centres of Expertise are tasked with defining and overseeing the policies, functional processes and technicalcomponents within their remit, defining processes and related KPIs: Talent Development involving staff engagement, development and training, performance appraisal management; Organization & HR Systems focused onorganizational development issues, role and position definition, and management of relevant information systems; Total Rewards involving company compensation and benefit systems.
The HR Business Partners, to whom the HR Business Managers report, owing to their function, represent the
point of reference on HR issues related to organization and workforce planning, HR management and enhancement, ensuring the implementation of all business processes designed to ensure the operation and achievementof set established business results.
Lastly, the Regional Heads of HR are the local point of reference to ensure any operational and transactional adjustments that may be required to the individual countries from a regulatory, contractual and cultural perspective
for the timely implementation of HR guidelines, policies and processes.

Datalogic Group   39Consolidated Annual Financial Report at December 31, 2023

Staff recruitment
The Employer Branding & Talent Acquisition team fosters the development of activities aimed at identifying­Datalogic as a company of value to potential candidates, with the intent of strengthening the active search for
specific profiles for sustainable growth in the field of innovation. With this in mind, the Company has further enhanced both the global Talent Acquisition process to achieve faster talent hiring and the onboarding procedures
to ensure effective integration of new hires into the Company. Relationships with the main universities in the area
(e.g. University of Bologna, University of Modena and Reggio Emilia) continued and further strengthened, in orderto enhance the wealth of know-how and attract the best talents with updated and strategic skills for the Group.
Lastly, great importance is also attached to the strong external communication activity through Social Media(LinkedIn, Instagram) on Datalogic people initiatives to continue to give exposure to the Datalogic Brand as an
employer of choice for potential candidates.
Training
The pursuit of excellence that sets Datalogic apart also embraces the impact the company has on its people,
with a focus on enhancing their skills. To continue supporting functional skills and behaviours aimed at achieving
business goals in 2023, several initiatives were launched as part of the training architecture, which was alreadyinitiated in 2022 and is based on 4 pillars: Datalogic DNA, aimed at spreading corporate culture from the earliest moments in the company through a
dedicated onboarding program; Talent & Leadership, with the launch of the Datalogic Talent Program, engaged a pool of talent and people in
key positions in a premium leadership empowerment journey; Technical Fab, for the continuous updating of key technical skills with specific focus on R&D and Operations
functions; Soft skills, a digital library with over 1000 pieces of content accessible to all employees to promote ongoing learning and the improvement of soft skills: each employee can use the library to take advantage ofself-learning content based on suggestions offered by their direct senior or based on development needs
identified by each person to support professional growth.

Assessment of Performance
At Datalogic, the performance assessment process is deeply rooted in goal orientation, harnessing a culture of
performance excellence and sustainability to consistently achieve robust business objectives.
The performance management process engages both the employee and their direct senior in a collaborative
appraisal, fostering alignment of performance expectations and recognising each individual’s commitment
and contributions. Individuals are assessed based on their performance at year end, focusing on two aspects:
achievement of goals and compliance of behaviour with company values. Specifically, this process is divided into
the phases of Goal Assignment, Half-Year Review, Self-Assessment, Manager’s Assessment, Assessment Calibration, and Feedback. The performance assessment process is also an important moment for gathering people’s professional aspirations and building individual development plans aimed at supporting the performanceover time and professional growth of the Group’s people.

Relations with Trade Unions
Positive trade union relations resulted in a new agreement between the company and the RSU, supported by
FIOM-CGIL Bologna and Teramo, UGLM Bologna, and FIM-CISL Bologna Metropolitan Area, regarding the 20232025 Results Bonus, maintaining the Corporate Welfare, which allows and encourages the use of the Bonusfor the purchase of recreational goods and services and, above all, of so-called “social utility”, that is, dedicated40   Datalogic Groupto the employee’s personal care (understood both as health and wellness in a broad sense) and family care. The
incentive is for those who opt for full conversion of the Performance Bonus into credit, expendable on the IT
platform specially purchased by Datalogic, and consists of the disbursement of an additional sum equal to 10%of the converted amount.
Furthermore, in 2023, the Solidarity Leave Fund, established in October 2022 in agreement with RSUs and tradeunions, remained operational. This fund enables employees to anonymously donate hours of their leave and vacation time at no cost, which can then be allocated to colleagues facing objective hardship. The Fund, besides intervening in the situations already envisaged in the National Collective Labour Agreement (care of minor children
in need of constant care and personal conditions of pathology), also offers support in situations that are currently
less or not at all covered by current regulations, such as serious family disruptions, involving the need to assist
oneself or one’s family members (e.g., separations and litigation) external traumatic events, such as wars, criminal acts or natural disasters, with critical repercussions on oneself or one’s family; bereavement due to death of
cohabiting family members (additional to what is already envisaged in the company bargaining in force).

Employee engagement
Throughout 2023, the company continued its journey of mutual listening and dialogue with employees, aiming toenhance their work experience to align more closely with their preferences. This ongoing effort underscores thecommitment to employee satisfaction, which is considered essential for the company’s success.
The listening activity was conducted using an innovative methodology known as Virtual Focus Groups (VFGs).
This approach enabled all participants to engage in anonymous discussions within a virtual environment, facilitating the exchange of viewpoints and the capture of qualitative insights. The comments and suggestions provided by participants proved to be invaluable in gaining a deeper understanding of what truly matters to individuals.
In particular, this initiative enabled us to grasp the significance that each employee places on the components
constituting the Employee Value Proposition (EVP). The EVP encompasses both tangible and intangible elements
provided by the company to ensure a fulfilling work experience for its employees. Following each Virtual Focus
Group, a workshop was conducted with employees involved to share the findings as well as the tailored action
plan for each geographical context.
This approach enables the company to implement initiatives that genuinely resonate with employees, whether
they pertain to employee benefits and support for their families, the work environment, and development andtraining opportunities.

Datalogic Group   41Consolidated Annual Financial Report at December 31, 2023

Reconciliation statement of the result for the year and Equity of the Parent
Company and of the GroupThe Reconciliation Statements of equity and net profit of Datalogic S.p.A. and the corresponding consolidated amounts at December 31, 2023 and December 31, 2022, as envisaged in Consob Communication no.
DEM/6064293 of July 28, 2006, are shown below.
December 31, 2023

December 31, 2022

Total Equity

Profit/(loss) for
the year

Total Equity

Profit/(loss) for
the year

Parent Company equity and profit

340,492

17,087361,137

30,418Equity and result of consolidated companies

126,928(2,533)

148,629

40,606

Elimination of dividends(6,977)

Amortisation of intangible fixed assets "business combination"(12,516)

Effect of acquisition “under common control”(31,733)(31,733)

Elimination of capital gain on sale of business unit

(17,067)(17,067)

Effect on elimination of intercompany transactions(8,272)Adjustment of write-downs and capital gains on investments

5,517

5,517

Goodwill impairment(1,395)(1,395)

Other

615

615

Tax effect

8,563

793

7,770

4,301

411,1319,486

451,567

30,126

Group equity and profit

42   Datalogic Group

(2,864)(29,971)

3,981(9,651)(12,253)(2,518)(12,711)

Parent Company reclassified financial position, results and cash flows for the year
The following table shows the main reclassified financial and equity items for the Parent Company Datalogic
S.p.A. at December 31, 2023 versus December 31, 2022.
31.12.2023

31.12.2022

Change% chg.

Intangible fixed assets

6,598

7,760

(1,162)-15.0%

Tangible fixed assets

20,35021,174

(824)

-3.9%

Financial assets and investments in associates

193,029

197,283(4,254)

-2.2%

1,543

1,739

(196)

-11.3%

Fixed Assets

221,520

227,956(6,436)-2.8%

Trade receivables

17,131

15,417

1,714

11.1%

Trade payables(5,855)(5,605)

(250)

4.5%

Net Trade Working Capital

11,276

9,812

1,464

14.9%

Other current assets

5,045

5,416

(371)

-6.9%

Other liabilities and provisions for current risks(18,970)(22,439)3,469-15.5%Net Working Capital(2,649)(7,211)

4,562-63.3%

Other non-current liabilities(2,438)(2,235)

(203)

9.1%

Post-employment benefits

(788)

(716)

(72)

10.1%

Net Invested Capital

215,645

217,794(2,149)-1.0%

Equity(340,492)(361,137)

20,645-5.7%

Net financial position (NFP)

124,847

143,342(18,495)-12.9%

Other fixed assets

Datalogic Group   43Consolidated Annual Financial Report at December 31, 2023

The following table shows the main reclassified income items of the year versus the prior year:
31.12.2023

31.12.2022

Change% chg.

Revenue

32,492100.0%

35,943100.0%(3,451)-9.6%

Cost of goods sold

(1,703)-5.2%(1,817)

-5.1%

114

-6.3%

Gross Operating Margin

30,78994.8%

34,126

94.9%(3,337)-9.8%

Research and Development expense

(830)

-2.6%

(829)

-2.3%

(1)

0.1%

Distribution expense(2,145)-6.6%(2,379)

-6.6%

234

-9.8%

Administrative and General expense(26,458)-81.4%(29,835)-83.0%

3,377-11.3%

429

1.3%

584

1.6%

(155)

-26.5%(29,004)-89.3%(32,459)-90.3%

3,455-10.6%

EBIT

1,785

5.5%

1,667

4.6%

118

7.1%

Net Financials

17,89055.1%

29,432

81.9%(11,542)-39.2%

Foreign exchange gains/(losses)

1,105

3.4%

1,406

3.9%

(301)

-21.4%

EBT

20,78064.0%32,505

90.4%(11,725)-36.1%

Tax

3,693

11.4%

2,087

5.8%

1,606

77.0%

17,08752.6%

30,41884.6%(13,331)-43.8%

Other (expense) income
Total operating costs and other expense

Profit/(Loss) for the year

44   Datalogic GroupShare performance
Datalogic S.p.A. has been listed on the Italian Stock Exchange since 2001 - Euronext STAR Milan segment (High
Requirements Shares Segment) of the Euronext Milan Market of Borsa Italiana, which includes medium-sizedcompanies with a capitalisation between €40 million and €1 billion that are committed to meeting standards of excellence. Starting in 2023, Datalogic S.p.A. became part of Euronext Tech Leaders, a segment comprising over 120
European companies listed on Euronext’s high-growth markets and recognised leaders in the technology sector.

14.0

2,800

13.0

2,600

12.0

2,400

11.0

2,200

10.0

2,000

9.0

1,800

8.0

1,600

7.0

1,400

6.0

1,200

5.0

1,000

4.0

800

3.0

600

2.0

400

1.0

200

0
01/01/23

01/03/23
Prices01/05/23

01/07/23

01/09/23

01/11/23

Volumes (/000)

Prices (€)

In 2023, the share was down by 18.8%. It reached a high of €9.840 per share on January 18, 2023 and a low of€5.255 on October 25, 2023. Average daily volumes traded in 2023 were approximately 112,000 shares, in linewith the average of 110,000 in the prior year.

0
01/01/24    

Volumes

TREASURY SHARES

8.21%

STOCK EXCHANGE 2023
SEGMENTEURONEXT STAR MILAN – EURONEXT MILANBLOOMBERG CODE

DAL.IM

REUTERS CODE

DAL.MINUMBER OF SHARES 58,446,491 (of which 4,800,000 treasury shares)
2023 LOW

5.255 EURO (October 25, 2023)

2023 HIGH

9.840 EURO (January 18, 2023)

CAPITALISATION

395.10 MN EURO at December 31, 2023

FREE FLOAT

26.94%HYDRA S.P.A.

64.85%

Datalogic Group   45Consolidated Annual Financial Report at December 31, 2023

Relations with institutional investors and shareholders
Datalogic actively strives to maintain an ongoing dialogue with shareholders and institutional investors, periodically arranging meetings with representatives of the Italian and international financial community, including
annual roadshows organised by Borsa Italiana for companies listed in the Euronext STAR Milan segment.
In 2023, the Company met 115 institutional investors in one to one, lunch meetings and corporate events.

Risk management policy
Effective risk management is a key factor in maintaining the Group’s value over time. In this regard, as part of the
Corporate Governance system, Datalogic has defined an Internal Control and Risk Management System compliant with the principles set forth in Article 6 of the Corporate Governance Code related to the Internal Control and
Risk Management System and, more generally, to national and international best practices.
This system represents the set of organizational structures, rules and procedures aimed at allowing the identification, measurement, management and monitoring of the main business risks within the Group, contributing
to a sound and correct management of the company and consistent with the objectives defined by the Board of
Directors and encouraging the making of informed decisions consistent with the risk appetite, as well as thedissemination of a correct knowledge of risks, legality and company values.
The Board of Directors is responsible for defining the guidelines so that the main risks relating to Datalogic S.p.A.
and its subsidiaries are correctly identified, as well as adequately measured, managed and monitored.
The Board of Directors identifies the following corporate functions responsible for risk management, defining
their respective tasks and responsibilities within the Internal Control and Risk Management System: Executive Board, which identifies and assesses operational risks, directly expressed by the strategy and related to the achievement of strategic goals in line with the execution responsibilities assigned to them.
 Control, Risks, Remuneration and Appointments Committee (composed, in line with the provisions of the
Corporate Governance Code, of 3 independent and non-executive Directors) has the task of supporting, withadequate preliminary activities, the assessments and decisions of the Board of Directors relating to the internal control and risk management system.
The general principles of risk management and the bodies entrusted with their assessment and monitoring arecontained in the Corporate Governance Report, in the Organizational, Management and Control Model pursuant
to Legislative Decree no. 231/2001 and in the accounting and administrative control model (pursuant to Article
154 bis of the TUF).
In order to allow the organization to define the risk categories on which to focus its attention, the Datalogic Group
has adopted a risk identification and classification model, starting from risk classes divided by type, in relation
to the managerial level or to the company department in which they originate or which has the responsibility for
their monitoring and management.
The Internal Audit department assesses, based on an annual plan approved by the Board of Directors and theControl, Risks, Remuneration and Appointments Committee, the effectiveness and efficiency of the Internal Control and Risk Management System as a whole, reporting the results of its activities to the Chairman, the Chief
Executive Officer, the Board of Statutory Auditors and the Control, Risks, Remuneration and Appointments Committee and to the Supervisory Body for the specific risks related to the obligations of Legislative Decree no.
231/2001 and at least once a year to the Board of Directors.

46   Datalogic GroupThe main risks for each of the risk families listed above are shown below. The order in which they are shown
does not imply any classification, either in terms of likelihood of their occurrence, or in terms of possible impact.
The first-level risk families identified on the basis of the Risk Management Policy are as follows: External risks; Strategic risks; Operational risks; Financial risks.

External risks
Country risk
With regard to its international footprint, Datalogic is exposed to country risk, in any case mitigated by the adoption of a business diversification policy by product and geographical area, in order to allow the balancing of thisrisk at Group level.

Strategic risks
Technological innovation
The Group’s core market is characterized by the design and production of high-tech products, with the resulting
risk that the technologies might be subject to obsolescence or copied and used by other industry players. With
regard to this risk, the Group has developed an innovation and product development strategy updated annuallyand constantly monitored by Management also with regard to the competitive scenario. The Group has set up aunit dedicated to the management and protection of intellectual property, which operates by implementing all thetools required to mitigate the risk of infringement. For further information, reference is made to the “Researchand Development” section of this Report on Operations.
Market
The Group operates in a market that is extremely dynamic and potentially attractive for new players with financial
resources greater than those of the Group. To mitigate the risk associated with these events, the Group maintains
a high level of investment in research and development and a large portfolio of patents that represents a significant barrier to the entry of new competitors. The Datalogic Group also has a strong commercial structure (direct
presence in the key countries where the Group operates) and a solid network of commercial partners, whichallow it to ensure a high level of customer service and a high loyalty rate.
Corporate Social Responsibility
In 2023, the Datalogic Group continued to enhance the reporting process, with a view to the evolution of theNon-Financial Statement and to meeting the regulatory requirements introduced by Legislative Decree 254/2016.
Firstly, by redefining and improving the Materiality Analysis process to integrate feedback and insights from our
key stakeholders in identifying material topics and their priorities; and secondly, by establishing the foundation
for defining medium- to long-term strategic sustainability targets, aligned with the evolving legislation on Sustainability Reporting.

Datalogic Group   47Consolidated Annual Financial Report at December 31, 2023

The refinement of a more concise list of material topics has enabled a sharper focus on the key sustainability targets for the Datalogic Group, along with the establishment of indicators collaboratively defined with the businessto provide more quantitative reporting on the identified topics.
To conclude, Datalogic’s commitment to sustainable and responsible growth permeates every facet of its operations. The Group believes that business solutions can drive the development of sustainable practices acrossvarious industries and is actively involved in monitoring the impacts of manufacturing activities by implementing
Environmental Management Systems at our sites.

Operational risks
the main operational risks intrinsic to the nature of the business are those related to the supply chain, the unavailabilityof production sites, product marketing, information technology, health, safety in the workplace, and the environment.
Supply Chain
The risk related to the supply chain can materialise with the volatility of the prices of raw materials and withthe dependence on strategic suppliers that, if they were to suddenly interrupt their supply relationships, could
jeopardise the production processes and the ability to fill customer orders in time. To cope with this risk, thePurchasing department constantly monitors the market in order to identify alternative suppliers, providing where
possible potential replacements for supplies deemed strategic (supplier risk management program). The supplier selection process also includes the assessment of their financial strength. Any fluctuations in the main cost
factors are neutralised through their partial transfer to the sales prices and a continuous process of improving
production, purchase and distribution efficiency.
Business Interruption
Natural or accidental events (such as earthquakes or fires), malicious behaviour (vandalism) or plant malfunctions can cause damage to assets, unavailability of production sites and their operational discontinuity. Datalogic
has therefore strengthened the mitigation process with the planning of loss prevention engineering activities on
the basis of internationally recognised standards, aimed at reducing the risk of such events as much as possible,
as well as implementing protections aimed at limiting their impacts, with the continuous consolidation of thecurrent operational continuity in the Group’s production sites.
Information Technology
Datalogic considers the operational continuity of IT systems to be crucial and has implemented risk mitigation
measures to ensure network connectivity, data availability and security, while ensuring the processing of personal data in relation to the European GDPR and the national regulations applicable in the individual EU member
countries. To this end, Datalogic has implemented an Information Security Management System (ISMS) and obtained two ISO 27001 certificates.
Datalogic also signed a memorandum of understanding with the Postal Police for the purpose of combating
cybercrime and sharing information and set up an interdepartmental committee (Cybersecurity Committee),composed of representatives of various company functions, for analysis and management of cyber risks linked
to products and business areas. Additionally, to ensure compliance with the data and information protection
requirements along the entire value chain, Datalogic has adopted a supplementary document (SAA - Security
Access Agreement) for supply contracts, with the security requirements for guaranteeing company resources, toensure proper management of IT risks associated with critical suppliers.

48   Datalogic GroupEnvironment, Safety and Health
The Group is exposed to risks related to health, safety in the workplace, and the environment, which can fall into
the following cases:
 poor protection of the health and safety of employees, which can materialise with the occurrence of serious
accidents or occupational diseases;
 environmental pollution linked, for example, to uncontrolled emissions, inadequate waste disposal or the
spillage of hazardous substances on land; non-compliance or incomplete compliance with sector regulations and laws, also in relation to the regulatory
volatility of some countries.
Any occurrence of these events may result in penal and/or administrative sanctions or financial outlays for ­Datalogic,
the amount of which could be significant. Additionally, in particularly critical cases, the actions of the controlling
public bodies may interfere with normal production activities, even potentially stopping the production lines orclosing the production site itself. Datalogic addresses this type of risk with a continuous and systematic assessment of its specific risks and with the consequent reduction and elimination of those deemed unacceptable. All
this is organized within a Management System (which refers to the international standards ISO 14001 and OHSAS
18001 and is certified by an independent third party) that includes both health and safety in the workplace andenvironmental matters.
With regard to other compliance risks, reference is made to the Datalogic Report on Corporate Governance andOwnership Structure available on the Datalogic website.

Financial risks
the Group is exposed to various types of corporate risk in carrying out its business, such as: market risk;
 credit risk;
 liquidity risk.
The management of these risks is the responsibility of the Treasury and Credit department of the Parent Company Datalogic S.p.A., in agreement with the Group’s Administration and Finance department, as described in
the Explanatory Notes to this Consolidated Annual Financial Report in the section “Financial Risk Management”.
Datalogic has adequate insurance coverage to reduce exposure to intrinsic risks associated with the activity carried out. All Group companies are now insured against the main risks considered strategic such as: property all
risks, third party liability, product liability, product recall. The analysis and insurance transfer of risks affecting theGroup is carried out in association with brokers of primary standing.

Datalogic Group   49Consolidated Annual Financial Report at December 31, 2023

Information on ownership structure/corporate governance report
Pursuant to and for the purposes of Article 123-bis, paragraph 3, of Legislative Decree 58 of February 24, 1998
(as subsequently amended and supplemented), the Board of Directors of Datalogic S.p.A. approved a Report on
Corporate Governance and Ownership Structure for the year ended December 31, 2023, separate from the Reporton Operations, containing information pursuant to paragraphs 1 and 2 of Article 123-bis above. This report ispublicly available on the Company website www.datalogic.com.

Other information
Datalogic S.p.A. indirectly controls a number of companies established and governed by the law of non-European
Union countries, that have relevant importance under Article 15 of Consob Regulation 20249/2017 (former Article 36 of Consob Regulation 16191/2007) on market regulation (“Market Regulation”).
Also pursuant to the above regulation, the Company has implemented in-house procedures to monitor the compliance with provisions set out by the Consob regulations. Specifically, the relevant corporate departments ensure the timely and periodic identification of relevant “non-EU” companies and, with the cooperation of the companies concerned, ensure the collection of data, information and ascertainment of the circumstances referred toin Article 15 above.
It is, therefore, acknowledged that Datalogic has fully complied with the provisions of Article 15 of the above
Consob Regulation 20249/2017 and that the conditions required have been met.
The Company adopted the opt-out system set forth in Articles 70, paragraph 8, and 71, paragraph 1-bis, of theIssuer Regulation (adopted by Consob with resolution no. 11971 of May 14, 1999 as subsequently amended), bymaking use of the right to depart from the obligation to publish information documents required on the occasionof significant mergers, demergers, capital increase by non-cash contributions, acquisitions and disposals.
Pursuant to the provisions set out by Article 5, paragraph 3, letter b, of Legislative Decree 254/2016, the Group
has separately prepared the Consolidated Non-Financial Statement. The 2023 Consolidated Non-Financial Statement, prepared according to the “GRI Standards” reporting (or based on the “GRI G4 Sustainability Reporting
Guidelines”) is available on the Group website.

Number and value of treasury shares
At December 31, 2023, the total number of ordinary shares was 58,446,491, including 4,800,000 held as treasury
shares, equal to 8.2% of the share capital; hence, the number of outstanding shares at that date is 53,646,491.
The shares have a unit par value of €0.52 and are fully paid up.

Related-party transactions
Related-party transactions, as disclosed in the reporting formats and described in detail in the related notes tothe Income Statement items, to which reference is made, cannot be qualified as atypical or unusual, given thatthey are part of the normal business of the Group companies, and are governed at arm’s length.
With resolution no. 17221 of March 12, 2010, also pursuant to and for the purposes of Article 2391-bis of the Italian Civil Code, Consob adopted the Regulation with provisions on related-party transactions, later updated withthe amendments made by Resolution no. 22144 of December 22, 2021 (“Consob Regulations”).

50   Datalogic GroupFollowing the adoption of the Consob Regulations, in order to ensure transparency as well as substantive andprocedural fairness of any transactions entered into by Datalogic with parties qualified as “related parties”
under the above Consob Regulations, on November 4, 2010, the Company approved a specific and structured
procedure for related-party transactions. Subsequently, on July 24, 2015 and June 23, 2021, the governing
body made a few changes to it (the document is available in the Corporate Governance section of the website
www.datalogic.com.
Pursuant to Article 5, paragraph 8, of the Consob Regulations, it should be noted that, over the period 01.01.2023– 31.12.2023, the Company’s Board of Directors did not approve any transaction of greater significance, as set out
by Article 3, paragraph 1, letter b) of the Consob Regulations, or any related-party transactions of a lesser significance that had a significant impact on the Group’s equity position or results.

Tax consolidation
The parent company Datalogic S.p.A., as Consolidating Company, and the subsidiaries Datalogic S.r.l. and­Datasensing S.r.l., as Consolidated Companies, have opted for the “national tax consolidation” for the three-year
period 2022-2024, as governed by Article 117 et seq. of the TUIR. This optional system results in the transfer ofthe respective individual taxable income, as well as receivables, advances and other tax attributes, from eachconsolidated company to the consolidating parent company Datalogic S.p.A. The latter will therefore settle theoverall tax, valuing the credit or debit position vis-à-vis the tax authorities. The subsidiary IP Tech S.r.l., on theother hand, has opted, as of 2021, for the transparency tax regime pursuant to Article 115 TUIR for the three-year
period 2021-2023 with the participating companies Datalogic S.p.A and Datalogic S.r.l.

Significant events during the year
On April 3, 2023, a transaction was finalized to transfer the 15% minority interest still held in Solution Net Systems
LLC (SNS) by the subsidiary Datalogic USA Inc.

Reclassification of income statement items
Starting from the first quarter of the current year, to provide a clearer picture of Group performance, certain
costs related mainly to installations, previously shown in distribution expense, have been classified in cost of
goods sold; additionally, certain quality-related expense has been itemized and allocated based on the intended
purpose.
Comparative figures have been consistently restated; reference is made to the table in Annex 4 of this documentfor details of the amounts.

Governance
On April 27, 2023, the Shareholders’ Meeting approved the Financial Statements at December 31, 2022, andreviewed the Group’s Consolidated Financial Statements at December 31, 2022, and resolved to distribute an
ordinary unit dividend, gross of tax, of 30 Euro cents per share, for a maximum total amount of €17.0 million.
The same Meeting also resolved to: set, pursuant to and for the purposes of Article 20 of the Bylaws, in the amount of €2.5 million, the maximum
global annual compensation to be granted to all the members of the Board of Directors, including those holding strategic responsibilities for the current year (2023) and for the portion of the following year (2024), until

Datalogic Group   51Consolidated Annual Financial Report at December 31, 2023

the date of approval of the Company’s 2023 financial statements, with the explicit exclusion of compensationplans based on financial instruments approved by the Shareholders’ Meeting, leaving to the discretion of theBoard itself any decision regarding the allocation of the above maximum global amount among the different
Directors;
 approve the 2023 remuneration policy set out in section one of the Report on Remuneration Policy and on
Compensation Paid and to vote in favour of compensation paid in 2022 set out in section two of the Report;
 authorize the Board of Directors, pursuant to and in accordance with Article 2357 et seq. of the Italian Civil
Code and Article 132 of Legislative Decree no. 58 of February 24, 1998, to carry out transactions involving
the purchase of the Company’s treasury shares, on one or more occasions, within 18 months from the dateof this resolution, concurrently revoking, for the portion unexecuted as of the date of the Shareholders’ Meeting, the authorization to the Board of Directors to purchase the Company’s treasury shares resolved by the
Shareholders’ Meeting on April 29, 2022.

Macroeconomic and geopolitical risks
The socio-political tensions that escalated into conflict between Russia and Ukraine starting from February 2022,
the developments of which remain unpredictable, have prompted Western countries to implement economic
sanctions against Russia. The Group has no offices in the countries currently affected by the conflict, nor do they
represent significant outlet or supply markets for it. The potential effects of this situation on the Company andGroup’s income and financial results are however constantly monitored.
Since the outbreak of the conflict and the adoption of sanctions by the EU against Russia, a cross-functional
working group has been established to assess and ascertain (including monitoring of “Denied Parties”), from atechnical point of view, which Datalogic products and which business partner relationships could potentially besubject to sanctions. Following entry into force of the IX European sanctions package, the Group companies havesuspended all sales and post-sales activities with Russia (trade with Belarus had already been blocked) and have
implemented control systems in order to prevent business transactions with sanctioned countries. Additionally,in response to the enactment of the XII package at end 2023, Datalogic has adjusted its contractual framework
to align with the regulations.
Moreover, starting from October 2023, tensions between Israel and Hamas have escalated into a conflict. While
the Group lacks a sphere of influence or operational headquarters in Israel, it remains vigilant regarding potential
negative effects stemming from heightened instability in this region.

Subsequent events
On March 7, 2024 Datalogic S.p.A. completed the disposal of 100% of its non-strategic stake in Informatics ­Holdings,
Inc. (Informatics), a company active in the marketing and distribution of software products and solutions tailoredto small and medium-sized companies, headquartered in Plano (Texas, USA).
The transaction involved the sale by Datalogic S.p.A. of its 100% stake in Informatics to a subsidiary of U.S. private equity firm Renovo Capital LLC. The disposal value was agreed upon at USD 34 million. The signing and closing of the transaction, which was defined in the first months of 2024, took place simultaneously on March 7, 2024.
Additionally, effective January 1, 2024, the Board of Directors approved the transfer of the subsidiary Datalogic
S.r.l.’s R&D division business unit to the subsidiary Datalogic IP Tech S.r.l. As a result, the ownership structureof Datalogic IP Tech S.r.l. changed: Datalogic S.r.l.’s stake increased from 50% to 67.16%, whereas the parent
company Datalogic S.p.A.’s stake decreased from 50% to 32.84%.

52   Datalogic Group

Business outlook
In 2023, the Group’s industry of operation faced significant challenges, marked by heightened uncertainty and asubstantial decrease in demand. Persistent geopolitical tensions, coupled with high inflationary pressures andrestrictive monetary policies, significantly dampened investment activities in the Group’s major markets. Thisconsequently led to a drop in orders and sales for the Group.
Demand remains stagnant in the short term. All of the Group’s main end markets are still feeling the effects of lowlevels of investment, with sales projections for the current quarter significantly lower than in first quarter 2023.
Overall, we expect a return to growth in the second half of the year, as a result of a gradual improvement in booking to date already seen in the Data Capture segment.
Despite uncertainty, the Group remains committed to advancing both its innovation and business strategy. This
ensures readiness to offer increasingly innovative solutions to customers as markets normalize. Additionally, tomitigate the short-term impacts of declining volumes on profitability, it remains focused on implementing continuous efficiency and cost optimization measures.

Secondary locations
The Parent Company has no secondary locations.
The Chairman of the Board of Directors(Romano Volta)

Datalogic Group   53GroupFinancial Statements

Consolidated Annual Financial Report at December 31, 2023

Consolidated Statement of Financial Position
ASSETS (Euro/000)

Notes

31.12.2023

31.12.2022

A) Non-current assets (1+2+3+4+5+6+7)

463,204

484,225

1) Tangible fixed assets

94,04098,799Land

1

12,597

12,740

Buildings

1

51,52052,449Other assets

1

26,892

29,825

Fixed assets under construction and advances

1

3,031

3,785

294,197

304,0142) Intangible fixed assets
Goodwill

2

205,352

212,043

Development costs

2

42,034

27,209Other

236,075

43,206

Fixed assets under construction and advances2

10,736

21,5563) Right of use fixed assets

3

11,44615,7584) Investments in associates

4

640

560

5) Non-current financial assets

6

4,778

8,119

6) Trade and other receivables

7

784

768

7) Deferred tax assets

12

57,31956,207B) Current assets (8+9+10+11)

256,299361,2868) Inventory

102,462

129,824

Raw and ancillary materials and consumables

8

51,00262,503Work in progress and semi-finished products

8

18,69025,864

Finished products and goods

8

32,77041,45770,546

109,845

9) Trade and other receivables
Trade receivables

7

52,09391,299		of which associates

7

1,346

2,861

		of which related parties

7

8

11

7

18,453

18,546

9

12,662

14,135		of which Parent Company

-

1,807

11) Cash and cash equivalents

70,629107,482

Total Assets (A+B)

719,503845,511

Other receivables, accrued income and prepaid expense
10) Tax receivables

56   Datalogic GroupConsolidated Statement of Financial Position
LIABILITIES (Euro/000)

Notes

31.12.2023

31.12.2022

A) Total equity (5+6)

10

411,131451,567

1) Share capital

10

30,39230,392

2) Reserves

10

98,212132,266

3) Retained earnings (losses)

10269,731

255,840

4) Profit (loss) for the year

10

9,859

29,5505) Group equity (1+2+3+4)

10

408,194

448,048

Profit (loss) for the year attributable to non-controlling interests

10

(373)

576

Share capital attributable to non-controlling interests

10

3,310

2,943

2,937

3,519

143,384

139,863

6) Equity attributable to non-controlling interests
B) Non-current liabilities (7+8+9+10+11)7) Non-current financial payables

11

86,101

79,0678) Deferred tax liabilities

12

26,334

28,6809) Provisions for post-employment and retirement benefits

13

5,759

6,163

10) Provisions for non-current risks and charges

14

5,197

5,193

11) Other liabilities

15

19,993

20,760C) Current liabilities (12+13+14+15)

164,988

254,08112) Trade and other payables

133,030

166,713

Trade payables

15

83,515

112,054

		of which associates

15

92

101

21

24

15

49,51554,6599

9,388

13,478-2,013

		of which related parties
Other payables, accrued expense and deferred income13) Tax payables
		of which Parent Company
14) Provisions for current risks and charges

14

2,721

3,468

15) Current financial payables

11

19,84970,422

719,503845,511

Total Liabilities (A+B+C)

Datalogic Group   57Consolidated Annual Financial Report at December 31, 2023

Consolidated Income Statement(Euro/000)

Notes

31.12.2023

31.12.2022
Restated

1) Revenue

16

536,617654,632

Revenue from sale of products

489,293

607,524

Revenue from services

47,324

47,108

7,176

13,119312,370

392,536314

304

224,247

262,096

		of which related parties and associates
2) Cost of goods sold17

		of which related parties and associates
Gross Operating Margin (1-2)
3) Other revenue

18

4,623

4,612

4) Research and development expense

1767,43562,303721

655

95,791102,092

223

235

53,59958,764

194

213

-

90

2,437

2,614

219,262

225,773

9,608

40,935		of which related parties and associates
5) Distribution expense17

		of which related parties and associates
6) Administrative and general expense17

		of which related parties and associates
		of which Parent Company
7) Other operating expense

17

Total operating costs
EBIT8) Financial income

19

24,32928,2039) Financial expense

1922,51834,882Net Financials (8-9)

1,811(6,679)Profit/(Loss) before tax from continuing operations

11,41934,256

1,933

4,130

9,486

30,126

Income tax

20

Net Profit/(Loss) for the year
Basic earnings/(loss) per share (€)

21

0.18

0.52

Diluted earnings/(loss) per share (€)

21

0.18

0.52

Shareholders of the Parent

9,859

29,550Non-controlling interests

(373)

576

Attributable to:58   Datalogic GroupConsolidated Statement of Comprehensive Income(Euro/000)

Notes

Net Profit/(Loss) for the year

31.12.2023

31.12.2022

9,486

30,126

Other items of the statement of comprehensive income:
Other items of the statement of comprehensive income that will later bereclassified to Profit/(Loss) for the year

Profit/(Loss) on cash flow hedges (CFH)

10

74

90

Profit (loss) from the translation of financial statements of foreign companies

10(12,058)

16,497(11,984)

16,587

-

558

-

(216)

(675)

(298)

8

2

(675)

260

Total profit/(loss) of the statement of comprehensive income(12,659)

16,847

Net Profit/(Loss) for the year

(3,173)

46,973

Shareholders of the Parent Company(2,591)

46,485

Non-controlling interests

(582)

488

Total other items of the statement of comprehensive income that will
later be reclassified to Profit/(Loss) for the year
Other items of the statement of comprehensive income that will not belater reclassified to Profit/(Loss) for the year

Actuarial gains (losses) on defined-benefit plansof which tax effectProfit/(Loss) from financial assets at FVOCIof which tax effectTotal other items of the statement of comprehensive income that will not
be later reclassified to Profit/(Loss) for the year

10

Attributable to:Datalogic Group   59Consolidated Annual Financial Report at December 31, 2023

Consolidated Statement of Cash Flows(Euro/000)

Notes

Profit/(Loss) before tax

31.12.2023

31.12.2022

11,41934,256

Depreciation of tangible fixed assets and write-downs

1, 2

11,915

13,395

Amortisation of intangible fixed assets and write-downs

1, 2

20,963

18,518Depreciation of right of use fixed assets

3

4,178

4,517

Losses (Gains) from sale of fixed assets

17, 18

(146)

(34)

Change in provisions for risks and charges

14

(387)

854

3,095

1,542

(1,811)

6,679

Monetary effect foreign exchange gains (losses)(1,176)(2,304)

Other non-monetary changes(2,270)(294)

Cash flow generated (absorbed) from operations before changes
in working capital

45,78077,129Change in provision for obsolescence
Net Financials

19

Change in trade receivables

7

39,068(2,549)Change in final inventory

8

23,017

8,357

Change in trade payables

15(27,228)(30,187)

Change in other current assets

7

(142)

(65)

Change in other current liabilities

15(4,353)

2,012

Change in other non-current assets

6

(30)

48

Change in other non-current liabilities

5

(440)

2,046

Cash flow generated (absorbed) from operations after changes
in working capital

75,672

56,792

Change in tax assets and liabilities(8,640)(11,111)

Interest paid

(3,739)(3,263)

Interest collected

570

140

Dividends collected

327

255

64,19042,813

Cash flow generated (absorbed) from operations (A)Increase in intangible fixed assets

2(18,630)(17,376)

Decrease in intangible fixed assets

2

-

27

Increase in tangible fixed assets

1(8,154)(9,032)

Decrease in tangible fixed assets

1

281

92

-

(15,994)

6,672

5,487

Cash flow from business combinations, net of cash acquired
Change in investments and current and non-current financial assets

60   Datalogic Group5

(Euro/000)

Notes

Cash flow generated (absorbed) from investments (B)31.12.2023

31.12.2022(19,831)(36,796)

Payment of financial payables

11(63,189)(52,579)

New financial payables

11

25,00070,000

Other changes in financial payables

11

(805)

(558)

(4,416)(4,758)

Payments of financial liabilities from leases(Purchase) sale of treasury shares

10(19,771)-

Dividend payment

10(17,034)(16,934)

(997)

390

-

(176)

Cash flow generated (absorbed) from financing activities (C)(81,212)(4,615)

Net increase (decrease) in cash (A+B+C)(36,853)

1,402

Net cash and cash equivalents at beginning of year

107,482

106,080

Net cash and cash equivalents at year end

70,629107,482

Effect of change in cash and cash funds
Other changes

Datalogic Group   61Consolidated Annual Financial Report at December 31, 2023

Consolidated Statement of Changes in Equity
Description

01.01.2023

Share capital Share premium
res.

TreasurysharesTranslation
reserve

Other
Reserves

Retainedearnings

30,392

111,779(22,191)

39,331

3,347

255,840

Allocation of profit

-

-

-

-

-

29,550

Dividends

-

-

-

-

-

(17,034)

Treasury shares--(19,771)---

Share-based incentive plan

-

-

-

-

(351)

-

Other changes

-

-

-

-

(1,482)

1,375

Profit/(Loss) for the year

-

-

-

-

-

-

Other items of the statement of comprehensive
income---(11,849)(601)-

Total comprehensive Profit (Loss)

-

-

-

(11,849)(601)-

30,392

111,779(41,962)

27,482913

269,731

Share capital Share premium
res.

TreasurysharesTranslation
reserve

Other
Reserves

Retainedearnings

31.12.2023

Description

01.01.2022

30,392

111,779(26,096)

22,746

11,239229,692

Allocation of profit

-

-

-

-

-

38,913

Dividends

-

-

-

-

-

(16,934)

Treasury shares

-

-

-

-

-

-

Share-based incentive plan

-

-

3,905

-

(4,582)219

Other changes

-

-

-

-

(3,660)3,950

Profit/(Loss) for the year

-

-

-

-

-

-

Other items of the statement of comprehensive
income---16,585350-

Total comprehensive Profit (Loss)

-

-

-

16,585350-

30,392

111,779(22,191)

39,331

3,347

255,840

31.12.2022

62   Datalogic GroupGroupProfit (Loss)Group
EquityProfit (Loss)
Share capital andof non-controlling
reserves of noninterests controlling interests

Equity attributable
to non-controllinginterests

Profit (Loss)

Equity29,550448,048

576

2,943

3,519

30,126

451,567(29,550)

-

(576)

576

-

(30,126)--(17,034)

-

-

-

-

(17,034)-(19,771)

-

-

-

-

(19,771)

-

(351)

-

-

-

-

(351)

-

(107)

-

-

-

-

(107)

9,859

9,859

(373)

-

(373)

9,486

9,486

-

(12,450)

-

(209)

(209)

-

(12,659)

9,859(2,591)

(373)

(209)

(582)

9,486

(3,173)

9,859

408,194

(373)

3,310

2,937

9,486

411,131

Group
Profit (Loss)Group
EquityProfit (Loss)
Share capital andof non-controlling
reserves of noninterests controlling interests

Equity attributable
to non-controllinginterests

Profit (Loss)

Equity38,913

418,665

627

2,432

3,060

39,540421,724(38,913)

-

(627)

627

-

(39,540)--(16,934)

-

-

-

-

(16,934)

-

-

-

-

-

-

-

-

(458)

-

-

-

-

(458)

-

290

-

(28)

(28)

-

262

29,55029,550

576

-

576

30,12630,126-

16,935

-

(88)

(88)

-

16,84729,55046,485

576

(88)

488

30,126

46,97329,550448,048

576

2,943

3,519

30,126

451,567

Datalogic Group   63Explanatory Notes to theConsolidated Financial
Statements

Consolidated Annual Financial Report at December 31, 2023

General information
Datalogic is a global technological leader in the automatic data capture and process automation markets. The
Company is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID.
Its pioneering solutions help increase efficiency and quality of processes in the areas of Retail, Manufacturing,Transportation & Logistics, and Healthcare, along the entire value chain.
Datalogic S.p.A. (hereinafter “Datalogic”, the “Parent Company” or the “Company”) is a joint-stock company listed
on Euronext STAR Milan of Borsa Italiana S.p.A. and is headquartered in Italy. The registered office is in Via Candini 2, Lippo di Calderara (BO).
This Consolidated Annual Financial Report for the year ended December 31, 2023 includes the figures of the Parent Company and its subsidiaries (defined hereinafter as “Group”) and the relevant shares in associates.
The publication of this Consolidated Annual Financial Report at December 31, 2023 of the Datalogic Group was
authorized by resolution of the Board of Directors dated March 14, 2024.

Basis of presentation
1) General criteria
In compliance with European Regulation no. 1606/2002, the Consolidated Annual Financial Report was preparedin accordance with the International Accounting Standards (IAS/IFRS) issued by the IASB - International Accounting Standard Board and endorsed by the European Union pursuant to European Regulation 1725/2003 andsubsequent updates, with all the interpretations of the International Financial Reporting Standard Interpretations
Committee (“IFRS-IC”), formerly known as the Standing Interpretations Committee (“SIC”) endorsed by the European Commission at the date of approval of the draft Financial Statements by the Parent Company’s Board of
Directors and contained in the relevant E.U. Regulations published on that date and in compliance with the provisions set forth in Consob Regulation 11971 of 14/05/99 and subsequent updates.

2) Reporting formats
The reporting formats adopted are compliant with those required by IAS 1 and were used in the Consolidated
Annual Financial Report for the year ended December 31, 2022, in particular: current and non-current assets, as well as current and non-current liabilities are shown separately in theStatement of Financial Position. Current assets, which include cash and cash equivalents, are those intended
to be realized, sold or used during the Group’s normal operating cycle; current liabilities are those expected to
be settled in the Group’s normal operating cycle or in the twelve months following the end of the year; with regard to the Income Statement, cost and revenue items are disclosed based on grouping by function, as
this classification was deemed more explanatory for understanding the Group’s economic result; the Statement of Comprehensive Income presents the items that determine profit/(loss) for the period andthe costs and revenue recognised directly under equity;
 the Statement of Cash Flows is presented using the “indirect method”.

66   Datalogic GroupThe Consolidated Annual Financial Report was prepared based on the draft Financial Statements at December
31, 2023, drawn up by the Boards of Directors or, if available, based on the Financial Statements approved by the
Shareholders’ Meetings of the related consolidated companies, duly adjusted, if applicable, to align them to theclassification and accounting criteria adopted by the Group.
The Consolidated Annual Financial Report was prepared in compliance with the general criterion of reliable andtruthful presentation of the Group’s financial position, results of operations and cash flows, on a going concern
and on an accrual basis, in compliance with the general principles of consistency of presentation, materiality andaggregation, prohibition of offsetting and comparability of information.
The Statement of Changes in Equity analytically details the changes occurring in the year and in the prior year.
In preparing the Consolidated Annual Financial Report, the historic cost principle was adopted for all assets andliabilities, except for certain financial assets for which the fair value principle was applied.
The preparation of IFRS-compliant financial statements requires the use of certain estimates. Reference is madeto the section describing the main estimates made in these Consolidated financial statements.
The Accounting Standards were uniformly applied to all Group companies and for all periods presented.
This Consolidated Annual Financial Report is drawn up in Euro thousands, which is the Group’s “functional” and“presentation” currency as envisaged by IAS 21.

3) Consolidation standards and policies
Subsidiaries
Control is obtained when the Group is exposed or entitled to variable returns, arising from its relationship with
the investee and, concurrently, has the ability to affect those returns by exercising its power over that entity, as
envisaged by IFRS 10. Specifically, the Group controls an investee if, and only if the Group has:
 power over the investee (i.e., holds valid rights that give it the current ability to direct the relevant activitiesof the investee); exposure, or rights, to variable returns from its involvement with the investee; the ability to use its power over the investee to affect the amount of its returns.
There is generally the assumption that a majority of voting rights involves control. To corroborate this assumption, and when the Group holds less than the majority of voting rights (or similar rights), the Group considers all
relevant facts and circumstances in order to define whether it controls the investee, including: contractual arrangements with other vote holders; rights arising from contractual agreements;
 voting rights and potential voting rights of the Group.

Datalogic Group   67Consolidated Annual Financial Report at December 31, 2023

The Group reconsiders whether it has control over an investee if the facts and circumstances show that changes
occurred in one or more of the three elements used for the definition of control. An investee is consolidated when
the Group obtains its control and the consolidation ends when the Group loses control. Assets, liabilities, revenue
and costs of the investee acquired or sold during the year are included in the Consolidated Financial Statements
at the date on which the Group obtains control until the date on which the Group no longer exercises control overthe entity.
In order to ensure consistency with the Group accounting criteria, when necessary, the financial statements of
the investees are adequately adjusted. All assets and liabilities, Equity, revenue, costs and intercompany cash
flows related to transactions between Group entities are entirely derecognised when consolidated.
Changes in interests in a subsidiary that do not result in loss of control are accounted for in Equity.
If the Group loses control over an investee, all related assets (including goodwill), liabilities, non-controlling­interests and other items in Equity must be derecognised, while any possible profit or loss will be recognised in
the Income Statement. Any retained interest must be recognised at fair value.
Mutual debt and credit and cost and revenue transactions, between companies within the consolidation scope, as
well as the effects of all significant transactions between them, are derecognised. Specifically, unrealized gains
with third parties from transactions between Group companies, including those arising from the valuation at thebalance sheet date of inventory, were derecognised, if any.
Business combinations
Business combinations are accounted through the acquisition method. The cost of an acquisition is the acquisition-date fair value of the consideration transferred, plus the amount of the non-controlling interest held. For
each business combination, the Group assesses whether to measure any non-controlling interest in the acquiree
at fair value or in proportion to the non-controlling interest’s share of the acquiree’s identifiable net assets. The
acquisition costs are recognised in the year and classified under administrative expense.
If the business combination is carried out in more than one step, the investment previously held is recalculated atfair value at the acquisition date and any resulting profit or loss is recognised in the Income Statement.
Any contingent consideration, to be recognised, is measured by the purchaser at fair value on the acquisition
date. The change in fair value of the contingent consideration classified as financial asset or liability must be recognised in the Income Statement.
Goodwill is initially measured at cost, which is the excess of the consideration paid, as compared to the fairvalue of the net identifiable assets acquired and the liabilities undertaken by the Group. If the fair value ofthe net assets acquired exceeds the total consideration paid, the Group checks again whether it has correctly
identified all the assets acquired and liabilities incurred and reviews the procedures adopted to determine
the amounts to be recorded at the acquisition date. If the new measurement still shows a fair value of the
net assets acquired that is higher than the consideration, the difference (profit) is recognised in the Income
Statement.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purposeof impairment testing, goodwill acquired in a business combination is allocated, from the acquisition date, toeach of the Group’s cash-generating units that are expected to benefit from the synergies of the combination,
regardless of whether other assets or liabilities of the target company are assigned to those units.

68   Datalogic GroupAssociates
Associates are those companies in which the Group has significant influence, but over which, however, it does not
exercise management control. Significant influence is presumed to apply when the Group holds 20% to 50% of
voting rights at Shareholders’ Meetings. Failing so, the Group assesses specific facts and circumstances to verify
the presence of significant influence.
Investments in associates are measured at equity. Under this method, the investment in an associate is initiallyrecognised according to the above acquisition method and the book value is increased or decreased to recognise
the investor’s share of the profit and loss of the investee after the date of acquisition. Goodwill related to the associate is included in the book value of the investment and is not subject to amortisation.
The Group’s share of associates’ post-acquisition profits or losses is recognised in the Income Statement, whereas
its post-acquisition share of changes in reserves is recognised in reserves. Cumulative post-acquisition c­ hanges
are included in the book value of the investment.
Unrealized profits relating to transactions between the Group and its associates are derecognised in proportion
to the Group’s interests in such associates. Unrealized losses are also derecognised unless the loss is considered
to represent impairment of the assets transferred. The accounting standards adopted by associates are adapted
when necessary to ensure consistency with the policies adopted by the Group.
Upon losing significant influence over an associate, the Group measures and recognises the residual investment
at fair value. Any difference between the carrying amount of the investment on the date that significant influence
is lost, as well as the fair value of the residual investment and the consideration received must be recognised in
the Income Statement.

4) Translation criteria of foreign currency financial statements
Financial statements prepared in currencies other than the currency in which the Group’s consolidated financial
statements are presented, i.e. the Euro, are consolidated using the method described above, subject to translation into Euro. The translation is carried out as follows: The assets and liabilities are translated using the exchange rates in force at the consolidated balance sheet
date; Costs and revenue are translated at the average exchange rate for the year; Exchange rate differences generated from the translation of income statement items at a rate different fromthe closing rate and from the translation of opening equity at an exchange rate different from the closing
rate of the reporting year, are recognised as an item of comprehensive income under “Translation Reserve”;
this reserve is recognised in full in the income statement in the year in which the Group relinquishes or loses
control of the investee; Goodwill and fair value adjustments related to the acquisition of a foreign entity are treated as assets andliabilities of the foreign entity and translated at the closing exchange rate for the year.

Datalogic Group   69Consolidated Annual Financial Report at December 31, 2023

The exchange rates used to determine the value in Euro of financial statements denominated in foreign currencyof subsidiaries (currency for 1 Euro) are shown hereunder:
Currency (ISO Code)Quantity of currency for 1 Euro
December 2023

December 2022

Actual exchange rate Average exchange rate
for the year

Actual exchange rate Average exchange rate
for the year

US Dollar (USD)

1.11

1.08

1.07

1.05

British Pound Sterling (GBP)

0.87

0.87

0.89

0.85

Swedish Krona (SEK)

11.10

11.48

11.12

10.63

Singapore Dollar (SGD)

1.46

1.45

1.43

1.45

Japanese Yen (JPY)156.33151.99140.66138.03Australian Dollar (AUD)

1.63

1.63

1.57

1.52

Hong Kong Dollar (HKD)

8.63

8.47

8.32

8.25

Chinese Renminbi (CNY)

7.85

7.66

7.36

7.08

Brazilian Real (BRL)

5.36

5.40

5.64

5.44

Mexican Peso (MXN)

18.72

19.18

20.86

21.19

Hungarian Forint (HUF)

382.80381.85400.87391.29Czech Crown (CZK)

24.72

24.00

24.12

24.57

5) Accounting policies and standards applied
The following are the policies adopted in the preparation of the Group’s Consolidated Financial Statements at
December 31, 2023; the Accounting Standards below have been consistently applied by all Group entities.
Tangible fixed assets
Owned tangible fixed assets are recognised at the cost of contribution, purchase, or internal construction. The
cost includes all directly attributable costs required to make the asset available for use (including, when relevant
and where there are present obligations, the present value of estimated costs for decommissioning, asset removal, and site remediation), net of trade discounts and rebates.
Certain tangible fixed assets in the “Land and buildings” categories were measured at fair value (market value)at January 1, 2004 (IFRS transition date) and this value was used as the deemed cost. The cost of buildings isdepreciated net of the residual value estimated as the realization value obtainable through sale at the end of theuseful life of the building.
Costs incurred after purchase are accounted for in the book value of the asset, or are recognised as a separate
asset, only if it is believed likely that the future economic benefits associated with the asset will flow to the entity

70   Datalogic Groupand the asset’s cost can be reliably measured. Maintenance and repair costs or replacement costs that do nothave the above characteristics are recognised in the income statement in the year in which they are incurred.
Fixed assets are systematically depreciated in each year from the time the fixed asset is available for use, oris potentially able to provide the associated economic benefits, based on economic-technical rates determinedwith regard to the remaining possibility of use of the assets and taking account of the month of availability forthe first year.
Land is considered to be an asset with indefinite useful life and therefore not subject to depreciation.
The depreciation rates applied by the Group are as follows:
Asset category

Rates

Property:
Buildings
Land

2% - 3.3%
0%Plant and equipment:
Automatic operating machines

20% - 14.29%

Furnaces and appurtenances

14%

Generic/specific production plant

20% - 10%

Other assets:
Plants pertaining to buildings

8.33% - 10% - 6.67%

Lightweight constructions

6.67% - 4% - 33.3%

Production equipment & electronic instruments
Moulds20% - 10%
20%

Electronic office machinery

33% - 20%- 10%

Office furniture and fittings

10% - 6.67% - 5%

Cars

25%

Freight vehicles

14%

Trade show & exhibition equipment
Leasehold improvements

11% - 20%
Contract duration

If a fixed asset suffers an impairment loss, then, regardless of the depreciation already recognised, the value ofthe fixed asset is accordingly written down; if the reasons for the impairment loss no longer apply in subsequent
years, the original value is restored. The residual value and useful life of assets are reviewed at least at each yearend in order to assess any significant changes in value.

Datalogic Group   71Consolidated Annual Financial Report at December 31, 2023

Fixed assets held under leases
Assets held by the Group under lease contracts, including operating leases, in accordance with IFRS 16, effective
January 1, 2019, are recognised as assets with a financial payable as a balancing entry. Specifically, assets arerecognised at a value equal to the present value of future payments at the date of signing of the contract, discounted using the applicable incremental borrowing rate for each contract, and depreciated over the duration of
the underlying contract, taking account of the effects of any extension or early termination clauses whose exercise was deemed reasonably certain.
In compliance with the provisions of IFRS 16, starting from January 1, 2019, the Group identifies contracts forwhich it obtains the right to use an identifiable asset for a period of time in exchange for a consideration as leases.
For each lease contract, starting from the commencement date, the Group recognises an asset (right of use of
the asset) under tangible assets as a balancing entry to a corresponding financial liability (lease payable), withthe exception of the following cases: (i) short-term lease contracts; (ii) low-value lease contracts applied to situations in which the leased asset has a value not exceeding €5 thousand (new value).
For short-term and low-value lease contracts, the financial liabilities related to the leases and corresponding
right of use are not recognised, but the lease payments are recognised in the income statement on a straight-line
basis for the duration of the respective contracts.
In the case of a complex contract that includes a lease component, the latter is always managed separately fromthe other services included in the contract.
Rights of use are shown in a specific item of the financial statements. At the time of initial recognition of the lease
contract, the right of use is recognised at a value corresponding to the lease payable, determined as describedabove, increased by the instalments paid in advance and the ancillary expense and net of any incentives received.
Where applicable, the initial value of the rights of use also includes the related costs of dismantling and restoring
the area.
The situations involving the recalculation of the lease payable imply a corresponding change in the value of theright of use.
After initial recognition, the right of use is depreciated on a straight-line basis, starting from the commencement
date, and subject to write-downs in the event of impairment. Depreciation is carried out over the shorter of thelease term and the useful life of the underlying asset; however, in cases where the lease contract envisages thetransfer of ownership, possibly also as a result of the use of redemption options included in the value of the rightof use, depreciation is carried out over the useful life of the asset.
Lease payables are shown in the financial statements under current and non-current financial liabilities, together
with the other financial payables of the Group. At the time of initial recognition, the lease payable is recorded on thebasis of the present value of the lease instalments to be settled determined using the implicit interest rate of thecontract (i.e. the interest rate that forms the present value of the sum of the payments and the residual value equal
to the sum of the fair value of the underlying asset and the initial direct costs incurred by the Group); if this rate is
not indicated in the contract or easily determinable, the present value is determined using the “incremental borrowing rate”, i.e. the incremental interest rate that, in a similar economic context and in order to obtain an amountequal to the value of the right of use, the Group would have paid for a loan with similar duration and collateral.
The lease payments subject to discounting include fixed payments; variable fees due to an index or a rate; theredemption price, if any and if the Group is reasonably certain to use it; the amount of payment envisaged for any
issue of collateral on the residual value of the asset; the amount of penalties to be paid in the event of the exercise
of options for early termination of the contract, where the Group is reasonably certain to exercise them.

72   Datalogic GroupAfter initial recognition, the lease payable is increased to take account of the interest accrued, determined on thebasis of the amortised cost, and decreased against the lease payments paid.
Additionally, the lease payable is subject to restatement, upward or downward, in the event of changes to thecontracts or other situations envisaged by IFRS 16 that involve a change in the amount of the instalments and/or the duration of the lease. Specifically, in the presence of situations that involve a change in the estimate of theprobability of exercise (or non-exercise) of the options for renewal or early termination of the contract or in theredemption (or not) provisions of the asset upon expiry of the contract, the lease payable is restated by discounting the new value of the instalments to be paid on the basis of a new discount rate.
Intangible fixed assets
Intangible assets are recognised under assets in the statement of financial position when it is likely that use of
the asset will generate future economic benefits and when the asset’s costs can be reliably determined. They
are initially recognised at the value of contribution or at acquisition or production cost, inclusive of any ancillary
expense.
If tangible and intangible fixed assets are sold, the date of disposal will be the date when the purchaser obtains
the control of the assets, pursuant to requirements set forth on performance obligations by IFRS 15. The profit
or loss generated by the consideration is accounted for in the Income Statement and is determined according
to requirements to determine the transaction price envisaged by IFRS 15. Subsequent changes to the estimatedamount of consideration used to determine profit or loss must be accounted for in accordance with the requirements for changes in transaction pricing in IFRS 15.
Goodwill
Goodwill is recognised in accordance with what was stated above with regard to business combinations in Note
3) Consolidation standards and policies. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is allocated to the cash generating units (CGUs) and is tested for impairment annually or more frequently, if specific events or changes in circumstances suggest possible impairment, pursuant to IAS 36 – “Impairmentof Assets”.
If goodwill has been allocated to a cash generating unit (CGU) and the entity disposes of part of this unit, goodwill
associated with the sold unit must be included in the book value of the asset when the profit or loss on disposal isdetermined. Goodwill associated with the discontinued operation must be calculated on the basis of the relating
values of the discontinued operation and the retained portion of the cash-generating unit. The same criterion ofrelated values is applied also when the format of the internal reporting is changed and affects the composition of
the cash generating units that received the goodwill, in order to define its new allocation.

Datalogic Group   73Consolidated Annual Financial Report at December 31, 2023

Research and Development expense
Under IAS 38, research expense is charged to the Income Statement at the time the cost is incurred.
Development costs for projects concerning significantly innovative products or processes are capitalised only if
the following can be shown: the technical possibility of completing the intangible asset so that it will be available for use or sale; the intention to complete the intangible asset and use or sell it; the ability to use or sell the intangible asset;
 the ability to reliably measure the cost attributable to the intangible asset during its development; the availability of adequate technical, financial and other resources to complete the development and to use
or sell the intangible asset;
 how the intangible asset will generate probable future economic benefits.
In the absence of any of the above requirements, the costs in question are fully recognised in the Income Statement at the time they are incurred.
Development costs have a finite useful life and are capitalised and amortised on a straight-line basis from the startof the product’s commercial production for a period equal to the useful life of the products to which they refer.
Other intangible fixed assets
Other intangible fixed assets include specific intangible assets purchased by the Group, also as part of businesscombinations, and therefore identified and recognised at fair value at the acquisition date according to the purchase method of accounting mentioned above.
These assets are considered to be intangible assets with finite life and are amortised over their presumable usefullife (see the next table).
Amortisation
Intangible fixed assets with finite useful life are amortised systematically in accordance with their expected futureuse, so that the net value at the end of the year corresponds to their remaining use or the amount recoverable
according to the company’s plans for carrying out production activities. Amortisation starts when the asset isavailable for use.
The useful life for each category is detailed below:
Description
Goodwill
Development costs

Years
Indefinite useful life
3/5

Other intangible assets:- Software licences

3/5- Patents (formerly PSC)

20

- Patents

10- Know-how

8/10- Customer portfolio

15- SAP licences10- User licences

Contract duration74   Datalogic GroupIntangible assets with indefinite useful life are not amortised but tested to identify any impairment annually, or
more frequently when there is evidence that the asset may have suffered impairment. The residual values, theuseful lives and the amortisation of intangible fixed assets are reviewed at each year end and, where appropriate,adjusted prospectively. The useful lives shown remained unchanged versus the prior year.
Impairment
When there are specific indicators of impairment, and at least annually, with regard to intangible fixed assets andgoodwill, tangible and intangible fixed assets are subject to an impairment test.
The aim of this impairment test is to ensure that tangible and intangible fixed assets are not carried at a value
exceeding their recoverable value, consisting of the higher of fair value, less costs to sell and the value in use.
Value in use is determined based on the future cash flows expected to originate from the asset or cash-­generating
unit (hereafter also CGU) to which the asset belongs. Expected cash flows are discounted using a discount ratethat reflects the current market estimate referring to the time-related cost of money and the risks specific to theasset or cash generating unit to which the assumed realizable value refers.
If the recoverable value of the asset or CGU, to which it belongs, is less than the net book value, the asset in question is written down to reflect its impairment, with recognition of the latter in the Income Statement for the year.
Impairment losses relating to CGUs are allocated firstly to goodwill and, for the remaining amount, to the otherassets on a proportional basis.
An impairment loss, in the event that the assumptions that generated it no longer apply, is reinstated, up to theamount corresponding to the book value that would have been determined, net of amortisation calculated on thehistorical cost, if no impairment loss had ever been recognised.
Any reinstatements are recognised in the Income Statement. The value of goodwill previously written down cannot be reinstated, as required by International Accounting Standards.
Financial assets and liabilities
The Group measures certain financial assets and liabilities at fair value. Fair value is the price that would bereceived for the sale of an asset or that would be paid for transfer of a liability in a normal transaction between
market participants at the date of measurement.
A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
 in the principal market of the asset or liability; or in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal market or most advantageous market must be accessible for the Group. The fair value of anasset or liability is measured by using the assumptions that market participants would use when pricing theasset or liability, assuming that they act in their economic best interest. A fair value measurement of a non-financial asset takes account of a market participant’s ability to generate economic benefits by using the asset
in its highest and best use or by selling it to another market participant that would use the asset in its highest
and best use.

Datalogic Group   75

Consolidated Annual Financial Report at December 31, 2023

The Group uses measurement methods that are appropriate to the circumstances, and for which data available
to measure fair value are sufficient, maximising the use of relevant observable inputs and minimising the use of
non-observable inputs. All assets and liabilities measured or recognised at fair value are classified based on a fairvalue hierarchy and described hereunder:
 Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity canaccess at the measurement date; Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly;
 Level 3 - measurement techniques for which input data are unobservable for the asset or liability.
The fair value measurement is classified in its entirety in the same level of the fair value hierarchy as the lowest
level input used for the measurement.
As regards assets and liabilities that are recognised in the financial statements at fair value on a recurring basis,the Group determines whether transfers between hierarchy levels occurred while revising the classification ateach annual reporting date.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or
equity instrument for another entity.
Financial assets
Financial assets are initially recognised at their fair value plus, in the case of a financial asset not at fair value
through profit or loss, any ancillary expense. Exceptions are trade receivables that do not contain a significant
financing component for which the Group applies the practical expedient by measuring them at the transaction
price determined in accordance with IFRS 15.
Upon recognition, for subsequent measurement purposes, financial assets are classified according to the four
possible measurement methods described below:
 Financial assets at amortised cost; Financial assets at fair value through OCI with reclassification of cumulative gains and losses;
 Financial assets at fair value through OCI without reversal of cumulative gains and losses on derecognition(equity instruments);
 Financial assets at fair value through profit or loss.
The selection of the classification of financial assets depends on the following: nature of financial assets, determined primarily by the characteristics of expected contractual cash flows; business model that the Group applies to the management of the financial assets in order to generate cash
flows, which may result from the collection of contractual cash flows, as well as from the sale of financial
assets or from both.

76   Datalogic GroupFor a financial asset to be classified and measured at amortised cost or at fair value through OCI, it must generate cash flows that depend solely on the principal and interest on the amount of principal to be repaid (so-called
solely payments of principal and interest - SPPI). This measurement is referred to as a SPPI test and is performedat the level of each instrument.
Financial assets are derecognised from the financial statements when the right to receive cash ceases, the Group
has transferred the right to receive cash flows from the asset or has assumed the contractual obligation to pay
them to a third party in their entirety and without delay and (1) has transferred essentially all the risks and benefits of ownership of the financial asset or (2) has not transferred or essentially held all the risks and benefits of
the asset, but has transferred control of the asset.
In the cases where the Group has transferred the rights to receive cash flows from an asset or has entered into an
arrangement based on which it retains the contractual rights to receive the cash flows of the financial asset, buttakes on a contractual obligation to pay the cash flows to one or more beneficiaries (pass-through), it assesses
whether and to what extent it has retained the risks and benefits pertaining to ownership.
Valuations are regularly carried out in order to verify whether there is objective evidence that a financial asset ora group of assets may have suffered impairment. If there is objective evidence, the impairment is recognised asa cost in the income statement for the year.
For trade receivables and contract assets, the Group applies a simplified approach to the calculation of expected
losses. Therefore, the Group does not monitor changes in credit risk, but the expected loss is fully recognised
at each reporting date. The Group has established a matrix system based on historical information, reviewed toconsider prospective elements with regard to the specific types of debtors and their economic environment, as atool for determining expected losses.
Financial liabilities
Financial liabilities are measured using the amortised cost method, recognising expense through the effective
interest rate method in the income statement, except for financial liabilities acquired for trading purposes orderivatives (see next paragraph), or those designated at FVTPL by Management on the date of initial recognition,
which are measured at fair value with a balancing entry in the income statement.
Financial guarantees given are agreements envisaging a payment to repay the owner of a debt security against
a loss incurred due to a non-payment by the debtor at the contractual maturity term. If the financial guarantees
are issued by the Group, they are initially recognised as liabilities at fair value, increased by transaction costs
that are directly attributable to the issue of the guarantee itself. The liability is then measured at the higher of thebest estimate of the outlay required to meet the guaranteed obligation at the balance sheet date and the amountinitially recognised, net of accumulated amortisation.
A financial liability is removed from the balance sheet when the obligation underlying the liability has beendischarged, cancelled or satisfied. Where an existing financial liability is exchanged for another from the samelender on substantially different terms, or the terms of an existing liability are substantially changed, suchan exchange or change is treated as a derecognition of the original liability and a recognition of a new liability, with any differences between the carrying amounts recognised in the Income Statement. In the event of
amendments on financial liabilities defined as irrelevant, the income effects of renegotiation are recognised in
the Income Statement.

Datalogic Group   77Consolidated Annual Financial Report at December 31, 2023

Offsetting of financial instruments
A financial asset and liability can be offset and the net balance can be shown in the Statement of Financial Position if there is a current legal right to offset the amounts recognised and there is the intention to settle the net
remainder, or realize the asset and at the same time settle the liability.
Financial derivatives
Derivatives, including embedded derivatives, separate from the main contract, are initially recognised at fairvalue.
Derivatives are classified as hedging instruments when the relationship between the derivative and the hedged
item is formally documented and the effectiveness of the hedge, assessed periodically, is high.
When hedging derivatives hedge the risk of change in the fair value of the hedged instruments, they are recorded
at fair value and the effects are posted to the Income Statement; accordingly, the hedged instruments are adjusted to reflect the changes in fair value associated with the risk hedged.
When derivatives hedge the risk of changes in the cash flows of the hedged instruments (cash flow hedges), thehedges made are designated against exposure to variability in cash flows attributable to risks that may affect the
Income Statement at a later date; these risks are generally associated with an asset or liability recognised in the
Financial Statements (such as future payments on debt at floating rates).
The effective portion of the change in the fair value of the portion of derivative contracts designated as hedges, inaccordance with the requirements of the standard, is recognised as an item of the Statement of Comprehensive
Income (Hedging Reserve); this reserve is then charged to income for the year in which the hedged transaction
affects the Income Statement.
The ineffective portion of fair value change, as well as the entire fair value change in derivatives that have notbeen designated as hedge derivatives or that do not have the requirements envisaged in the aforesaid IFRS 9, isinstead recognised directly through the Income Statement.
Inventory
Inventory is measured at the lower of cost and net realisable value. Cost is calculated using the weighted average
cost method. Finished and semi-finished product costs include the cost of raw materials, direct labour, and otherdirectly and indirectly attributable production costs (charged back based on normal production capacity). For raw
and ancillary materials and consumables, the net presumable realisable value is represented by the replacementcost. For finished and semi-finished products, the net presumable realisable value is the estimated selling pricein the ordinary course of business less the estimated costs of completion and the costs necessary to make thesale.
Obsolete and slow turnover inventory is written-down based on its estimated possible use or future sale, throughentry in a special provision, adjusted by the value of inventory.
Non-current assets held for sale and discontinued operations
The Group classifies non-current assets held for sale as held for sale if their book value will be recovered
primarily through a sale transaction, rather than through their continued use. These non-current assets
held for sale classified as held for sale are measured at the lower of their book value and their fair valueless costs to sell. Costs to sell are any additional costs directly attributable to the sale, excluding financial
expense and tax.
The condition for classifying an asset as held for sale is considered met only when the sale is highly probableand the asset or disposal group is available for immediate sale in its current condition. The actions required to78   Datalogic Groupconclude the sale should indicate that it is unlikely that significant changes in the sale will occur or that the salewill be cancelled. Management must be engaged in the sale, whose completion should be planned within one
year from the date of classification.
The depreciation of property, plant and equipment and amortisation of intangible assets ceases when they areclassified as available for sale.
Assets and liabilities classified as held for sale are shown separately under current items in the Financial Statements.
Income items related to assets held for sale and discontinued operations, when related to significant businesslines or geographical areas of operation, are excluded from the result of continuing operations and are shown in
the income statement in a single line as net profit/(loss) from assets held for sale or discontinued operations netof the related tax effect.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, bank and postal deposits, and short-term financial investments (maturity of three months or less after purchase date) that are highly liquid, readily convertible into cash
and are subject to insignificant risk of changes in value.
EquityShare capital consists of the outstanding ordinary shares recorded at par value.
Costs related to the issuance of new shares or options are classified in Equity (net of the associated tax benefit)
as a deduction from the proceeds arising from the issuance of these instruments.
Treasury shares
In the case of buyback of treasury shares, the price paid, inclusive of any directly attributable ancillary expense,
is deducted from the Group’s Equity until such shares are cancelled, re-issued, or sold. When treasury sharesare resold or re-issued, the proceeds, net of any directly attributable ancillary expense and related tax effect, areaccounted for as Group Equity.
Consequently, no profit or loss is recognised in the consolidated Income Statement at the time of purchase, saleor cancellation of treasury shares.
Liabilities from employee benefits
Post-employment benefits are defined on the basis of plans, which according to their characteristics are divided
into “defined-contribution” and “defined-benefit” plans.
Employee benefits substantially include the provisions for severance indemnities of the Group’s Italian companies
and of retirement provisions.
Defined-contribution plans
Defined-contribution plans are formalised post-employment benefit plans under which a company makes payments to an insurance company or pension fund and will have no legal or implied obligation to pay further contributions if the fund does not have sufficient assets at vesting to pay all employee benefits related to employment
in the current and prior years. These contributions, paid in exchange for employee service, are recorded as an
expense in the period incurred.

Datalogic Group   79Consolidated Annual Financial Report at December 31, 2023

Defined-benefit plans and other long-term benefits
Defined-benefit plans are formalised post-employment benefit plans that constitute a future obligation for theGroup. The entity is underwriting the actuarial and investment risks associated with the plan.
The Group uses the projected unit credit method to determine the present value of liabilities of the plan and thecost of services.
This actuarial calculation method requires the use of objective actuarial hypotheses, compatible and based on
demographic variables (mortality rate, personnel turnover) and financial variables (discount rate, future increases of salaries and wages and benefits). When a defined-benefit plan is entirely or partly financed by contributions
paid to a fund, legally separate from the company, or to an insurance company, the plan assets are measured atfair value. The amount of the obligation is thus accounted for, net of the fair value of the plan assets that will be
used to settle that obligation directly.
Revaluations, which include actuarial gains and losses, changes in the effect of the asset ceiling (excluding net
interest), and the return on plan assets (excluding net interest), are recognised immediately in the Statement of
Financial Position by debiting or crediting retained earnings through the other items of the Statement of Comprehensive Income in the year in which they arise. Revaluations are not reclassified in the Income Statement in subsequent years. Other long-term benefits are employee benefits other than post-employment benefits. Accounting
is similar to defined-benefit plans.
Provisions for risks and charges
Provisions for risks and charges are set aside to cover liabilities of uncertain amount or due date that must berecognised in the financial statements when the following concurrent conditions are met: the entity has a present obligation (legal or constructive), i.e. under way at the reporting date, as a result ofa past event; it is likely that economic resources will be required to fulfill the obligation;
 the amount needed to fulfil the obligation can be reliably estimated; risks for which the onset of a liability is merely potential are shown in the notes to the financial statements,
in the commentary part of the provisions, without making a provision.
In the case of events that are only remote, i.e., events that have minor chances of occurring, no provision is accounted for, nor is additional or supplementary information provided.
Allocations are booked at the amount representing the best estimate of the amount that the company would pay
to pay the obligation or to transfer it to third parties at the reporting date. If the effect of discounting the value ofmoney is significant, allocations are determined by discounting expected future cash flows at a pre-tax discountrate that reflects the current market valuation of the time value of money. When discounting is carried out, theincrease in the provision due to the passage of time is recognised as a financial expense.
Provisions are recorded at the present value of the expected financial resources to be used against the obligation.
Provisions are periodically updated to reflect changes in cost estimates, timing of implementation, and discounted value, if any; revisions in provision estimates are charged to the same line item in the Income Statement that
previously included the allocation and to the Income Statement for the year in which the change occurred.

80   Datalogic GroupThe Group recognises restructuring provisions if there is an implied obligation to restructure and there is a formal
plan for restructuring, which has raised a valid expectation in those affected that it will carry out the restructuring
either by starting to implement that plan or because it has announced its main features to those affected by it.
Share-based incentive plan - Equity-settled payment transactions
A number of Group employees receive part of the remuneration as share-based payments, therefore the employees provide services in exchange for shares (“equity settled transactions”).
The cost of equity-settled transactions is determined by the fair value on the date the assignment is made using
an appropriate valuation method.
This cost is recognised under labour costs for the period in which the conditions related to the achievement oftargets and/or the performance of the services are fulfilled, with a corresponding increase in equity as a balancing entry. The cumulative costs recorded for such transactions at the end of each year up to the vesting date arecommensurate with the expiry of the vesting period and the best estimate of the number of equity instrumentsthat will actually vest.
Service or performance conditions are not taken into account when defining the fair value of the plan at the grant
date. However, the probability of these conditions being met is taken into account when defining the best estimate of the number of equity instruments that will vest. Arm’s length conditions are reflected in the fair value atthe grant date. Any other conditions attached to the plan that do not involve a service obligation are not considered to be a vesting condition. Non-vesting conditions are reflected in the fair value of the plan and result in theimmediate recognition of the cost of the plan, unless there are also service or performance conditions.
No cost is recognised for rights that do not ultimately vest because the performance and/or service conditions
have not been met. When rights include a market condition or a non-vesting condition, they are treated as if they
had vested regardless of whether the market conditions or other non-vesting conditions they are subject to aremet or not, with the understanding that all other performance and/or service conditions must be met.
If the conditions of the plan are changed, the minimum cost to be recognised is the fair value at the grant date in
the absence of the plan change, assuming that the original conditions of the plan are met. Additionally, a cost isrecognised for any change that results in an increase in the total fair value of the payment plan, or is otherwise
favourable to employees; this cost is measured by reference to the date of change. When a plan is cancelled by theentity or the counterpart, any remaining fair value element in the plan is immediately transferred to the income
statement.
Income tax
Income tax includes current and deferred tax. Income tax is generally charged to the Income Statement, except
when it relates to cases recognised directly in Equity, in which case the tax effect is recognised directly in Equity.
Current income tax is calculated by applying to taxable income the tax rate in force at the reporting date and includes the adjustments to tax related to prior periods.

Datalogic Group   81Consolidated Annual Financial Report at December 31, 2023

Deferred tax is calculated using the liability method applied to temporary differences between the amount ofassets and liabilities in the consolidated financial statements and the corresponding amounts recognised for tax
purposes.
Deferred tax assets are recognised against all deductible temporary differences and unused tax receivables andlosses carried forward, to the extent that it is probable that there will be adequate future taxable profits that may
make the use of deductible temporary differences and tax receivables and losses carried forward applicable.
Deferred tax is calculated at the tax rate expected to be in force at the time the asset is sold or the liability issettled.
Datalogic S.r.l. and Datasensing S.r.l. participate in the “national tax consolidation” governed by Article 117 etseq. of the TUIR of Datalogic S.p.A. for the three-year period 2022-2024. This optional regime determines thetransfer by each consolidated company of the respective individual taxable income, whether positive or negative,
to Datalogic S.p.A., which consolidates an overall tax result by aggregating the individual tax results, including
its own, valuing the unitary credit or payable position vis-à-vis the tax authorities. The subsidiary IP Tech S.r.l.,on the other hand, has opted, as of 2021-2023, for the transparency tax regime pursuant to Article 115 TUIR withthe participating companies Datalogic S.p.A and Datalogic S.r.l.
Revenue recognition
Revenue is measured at fair value of the amount collected or collectable from the sale of goods or provision ofservices within the scope of the Group’s ordinary business activity. Revenue is shown net of VAT, returns, discounts and rebates and after eliminating sales with Group companies.
Pursuant to IFRS 15, the Group recognises revenue after identifying the contracts with its customers, as well as
performance obligations to be fulfilled, determining the consideration it expects to be entitled to in exchange forthe sale of goods or provision of services, and after evaluating the manners to satisfy such performance obligations (satisfaction at point in time or over time).
Pursuant to the provisions set out by IFRS 15, the Group recognises revenue only when the following obligations
have been met: the parties to the contract have approved the contract and are committed to perform their respective obligations;
 each party’s rights regarding the goods or services to be transferred can be identified; payment terms of transferable goods and services can be identified; the contract is of a commercial type; consideration in exchange for the goods sold or transferred services is likely to be received.
If the aforesaid requirements are met, the Group recognises revenue by applying the above rules.

82   Datalogic GroupSale of goods
Revenue resulting from the sale of equipment is recognised when the control of the goods is transferred to thecustomer.
The Group considers whether there are other promises in the contract that represent performance obligations
on which a portion of the transaction consideration is to be allocated (e.g., guarantees, customer loyalty plans).
In determining the transaction price for the sale of the equipment, the Group considers the impact resulting fromthe existence of the variable consideration, significant financing items, non-monetary considerations and considerations to be paid to the customer (if applicable).
The Datalogic Group grants trade discounts and rebates for achieving certain targets to its customers and accepts returns from them in accordance with existing contractual agreements. These adjustments are recorded
as a reduction in revenue. Specifically, the Group grants certain customers the right to return, under certain contractual conditions, goods sold and to receive a full or partial refund of any consideration paid or another productin return. Returns are accounted for in accordance with IFRS 15, recognising: as a reduction in revenue, the amount of consideration expected for the return; as an increase in liabilities, the amount of future refunds to be paid to the customer as a source of the return
under the credit note to be issued;
 as an increase in assets, the amount relating to inventory (and the corresponding adjustment of the cost of
sales) for the right to recover the products from the customer upon settlement of the liability for future refunds.
The processes and methods for assessing and determining the estimated portion of discounts to be paid andreturns to be received after year end are based on the conditions agreed with the large distributors, as well as on
accounting and management data produced internally and received from the sales network.
Provision of services
The Group provides installation, maintenance, repair and technical support services. The services are provided
both separately, based on contracts signed with customers, and jointly with the sale of the goods to customers.
As regards contracts related to both the sale of goods and the provision of services, the Group recognises two
separate obligations when the promises to transfer equipment and provide services can be divided and identified
separately. As a result, the Group allocates the transaction price based on the related prices for the sale of goods
and services.
Revenue on construction contract
Contracts that envisage the construction of an asset or the combination of closely related goods and services
are recognised over time if the following conditions set out in IFRS 15 are met: (i) the service does not create an
asset with an alternative use for the Group, (ii) the Group has an enforceable right to payment for performancecompleted until the date considered.
Revenue related to these contractual cases is recognised based on the status of performance obligations,when control of the goods and services is transferred to the customer for an amount that reflects the consideration the Group expects to receive in exchange for them.

Datalogic Group   83Consolidated Annual Financial Report at December 31, 2023

Their presentation in the Statement of Financial Position is as follows: the amount due from customers for contract works is shown as an asset under “trade receivables from third
parties”, when incurred costs plus margins recognised (less losses recognised) exceed the advances received;
 the amount due to customers for contract works is shown as a liability, under “trade payables to third parties”, when advances received exceed costs incurred plus margins recognised (less losses recognised).
Government grants are recognised - regardless of the existence of a formal grant resolution - when there isreasonable certainty that the entity will comply with the conditions attached to the grant and therefore that the
grant will be received.
Government grants obtainable as reimbursement for expense and costs already incurred, or for the purpose ofproviding immediate financial aid to the recipient company with no future related costs, are recognised as incomein the period in which they become receivable.
Income from dividends and interest
Income from dividends and interest is respectively recognised as follows: dividends, when the right to receive payment is determined (with receivable offset at the time of the distribution resolution);
 interest, applying the effective interest rate method.
Dividends distributed
Dividends are recognised when the right for shareholders to receive payment arises, which normally corresponds
to the date of the Annual Shareholders’ Meeting that resolves on the distribution of dividends.
The dividends distributable to Group Shareholders are recognised as an equity movement in the year when they
are approved by the Shareholders’ Meeting.
Earnings per share
Basic
Basic EPS is calculated by dividing the Group’s profit by the weighted average number of ordinary shares outstanding during the year, excluding treasury shares.
Diluted
Diluted EPS is calculated by dividing the Group’s profit by the weighted average number of ordinary shares outstanding during the year, excluding treasury shares. For the purpose of calculating diluted EPS, the weighted average number of shares outstanding is adjusted by assuming the conversion of all potential shares with dilutive
effects, while the Group’s net result is adjusted for the after-tax effects of conversion.

84   Datalogic GroupTreatment of foreign currency transactions
Functional presentation currency
The financial statement items of each Group entity are shown in the currency of the economic environment inwhich the entity operates, so-called functional currency. The Consolidated Financial Statements are presented inEuro thousands, the Euro being the Parent Company’s functional and presentation currency.
Transactions in currencies other than the functional currency
Transactions in currencies other than the functional currency are initially translated into the functional currency by using the exchange rate at the transaction date. At the end of the reporting period, monetary assets andliabilities denominated in non-functional currencies are translated into the functional currency at the exchange
rate in effect on the closing date. Exchange differences realised upon collection of receivables and payment of
payables in foreign currencies and those arising from the translation of monetary assets and liabilities into non-­functional currencies at the closing date are recorded in the Income Statement under financial income and expense. Non-monetary assets and liabilities denominated in non-functional currencies that are measured at cost
are translated at the exchange rate on the date of the transaction, while those measured at fair value are translated at the exchange rate on the date such value is determined.
Segment disclosure
Operating segments are identified based on the internal reports used by senior management in order to allocate
resources and assess results (internal reporting for performance analysis) for the relevant year. Based on thedefinition envisaged in the IFRS 8 Standard, an operating segment is a component of an entity:
 that undertakes business activities that generate costs and revenue;
 whose operating results are regularly reviewed by the top operating decision-makers of the entity for the
adoption of decisions on resources to be allocated to the segment and the assessment of results;
 for which separate information is available.
In light of the above definition, the operating segments defined by the Group are represented by Business Units
that report to the corporate top management and maintain periodic contacts to discuss operations, results, forecasts or plans. For the purposes of disclosures in the financial statements, the Group has therefore aggregated
the following operating segments:
 Datalogic;
 Informatics.
The segments that are included in each single combination share, in fact, the following aspects:a) the nature of products;b) the nature of production processes;c) the type of customers;d) the methods used to distribute products/services;e) the economic characteristics.
The transfer prices applied to transactions between segments and regarding the exchange of goods and services
provided are governed at arm’s length.

Datalogic Group   85Consolidated Annual Financial Report at December 31, 2023

6) IFRS accounting standards, amendments and interpretations applied by the Group fromJanuary 1, 2023
The following IFRS international accounting standards, amendments and interpretations have been applied forthe first time by the Group as of January 1, 2023:
 On May 18, 2017, the IASB published IFRS 17 – Insurance Contracts, intended to supersede IFRS 4 - Insurance
Contracts. The standard was applied as of January 1, 2023. The aim of the new standard is to ensure that an entity provides relevant information that faithfully represents the rights and obligations deriving from insurance
contracts issued.
The adoption of this standard and its amendment had no effects on the Group’s consolidated financial statements.
 On May 7, 2021, the IASB published “Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets
and Liabilities arising from a Single Transaction”. The document clarifies how entities should account fordeferred tax on certain transactions that can generate assets and liabilities of equal amounts at the dateof first recognition, such as leases and decommissioning provisions. The amendments were applied as of­January 1, 2023.
The adoption of this amendment had no effects on the Group’s consolidated financial statements.
 On February 12, 2021, the IASB published “Disclosure of Accounting Policies-Amendments to IAS 1 andIFRS Practice Statement 2” and “Definition of Accounting Estimates-Amendments to IAS 8”. The amendments regarding IAS 1 require an entity to disclose relevant information about the accounting standards applied by the Group. The changes are intended to improve disclosures about the accounting standards appliedby the Group so that they provide more useful information to investors and other primary users of financial
statements, as well as to help entities distinguish changes in accounting estimates from changes in accounting policies. The amendments were applied as of January 1, 2023. The adoption of these amendments had noeffects on the Group’s consolidated financial statements.
 On May 23, 2023, the IASB published “Amendments to IAS 12 Income taxes: International Tax Reform – P­ illarTwo Model Rules”. The document provides temporary relief from the recognition and disclosure requirements for deferred tax assets and liabilities related to the Pillar Two Model Rules (rule effective in Italy as ofDecember 31, 2023, but applicable as of January 1, 2024) and envisages specific disclosure requirements forentities affected by the related International Tax Reform.
The document envisages the immediate application of temporary relief, while the disclosure requirements
apply only to annual financial statements that began on or after January 1, 2023, but not to interim financial
statements with a closing date prior to December 31, 2023.

7) IFRS accounting standards, amendments and interpretations endorsed by the European
Union at December 31, 2023, but not yet applicable on a compulsory basis and not adopted inadvance by the Group at December 31, 2023
The following IFRS accounting standards, amendments and interpretations have been endorsed by the European Union, but are not yet mandatorily applicable and have not been adopted in advance by the Group at December 31, 2023:
 On January 23, 2020, the IASB published “Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current” and on October 31, 2022 published “Amendments

86   Datalogic Groupto IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants”. These changes
aim to clarify how to classify payables and other short-term or long-term liabilities. Additionally, the amendments also improve the information that an entity must provide when its right to defer settlement of a liability
for at least twelve months is subject to meeting certain parameters (i.e., covenants). The amendments comeinto force on January 1, 2024, but early application is permitted. The Directors do not expect any material
effect on the Group’s consolidated financial statements from the adoption of this amendment.
 On September 22, 2022, the IASB published “Amendments to IFRS 16 Leases: Lease Liability in a Saleand Leaseback”. The document requires the seller-lessee to measure the lease liability arising from a sale& leaseback transaction in a way that it does not recognise the gain or loss that relates to the right of use it
retains. The amendments will apply as of January 1, 2024, but early application is permitted. The Directors
do not expect any material effect on the Group’s consolidated financial statements from the adoption of thisamendment.

8) IFRS accounting standards, amendments and interpretations not yet endorsed by the European
Union at December 31, 2023
At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below.
 On May 25, 2023, the IASB published “Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements”. The document requires an entity to provide
additional information on reverse factoring arrangements that will enable financial statement users to assess
how financial arrangements with suppliers may affect the entity’s liabilities and cash flows and to understandthe effect of such arrangements on the entity’s exposure to liquidity risk. The amendments will apply as ofJanuary 1, 2024, but early application is permitted. The Directors do not expect any material effect on theGroup’s consolidated financial statements from the adoption of this amendment.
 On August 15, 2023, the IASB published “Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability”. The document requires an entity to apply a methodology to be
applied consistently in order to ascertain whether one currency can be converted into another and, when thisis not feasible, how to determine the exchange rate to be used and the disclosure to be made in the notes tothe financial statements. The amendment will apply as of January 1, 2025, but early application is permitted.
The Directors do not expect any material effect on the Group’s consolidated financial statements from theadoption of this amendment.

Datalogic Group   87Consolidated Annual Financial Report at December 31, 2023

9) Consolidation scopeThis Consolidated Annual Financial Report at December 31, 2023 includes the income statement and balance
sheet data of Datalogic S.p.A. and all the companies that it directly or indirectly controls.
The list of investments included in the consolidation area appears in Annex 2 of the Explanatory Notes, with anindication of the methodology used.

10) Use of estimates and assumptions
The preparation of the Consolidated Annual Financial Report requires the Directors to apply accounting standards and methods that, in certain cases, are based on valuations and estimates based on historical experienceand assumptions that are evaluated from time to time according to the specific cases. The application of theseestimates and assumptions affects the amounts of revenue, expense, assets and liabilities and their disclosure,
as well as the disclosure of contingent liabilities. The results of financial statement items for which the above
estimates and assumptions were used may differ from those shown owing to the uncertainty surrounding theassumptions and conditions on which the estimates are based.
Following are the assumptions regarding the future and other main causes of uncertainty in estimates that, at
the reporting date, show a risk of resulting in adjustments to the carrying amounts of assets and liabilities within
the next year. The Group has based its assumptions and estimates on parameters available when preparing theConsolidated Financial Statements. The current circumstances and assumptions on future developments may
however change upon occurrence of market changes or events beyond the Group’s control. Upon their occurrence, these changes are reflected in the assumptions.
Impairment of non-financial assets (Goodwill, Tangible and Intangible Fixed Assets and Rights of Use)
An impairment occurs when the book value of an asset or CGU exceeds its recoverable value, which is the higherof its fair value less costs to sell and its value in use. Fair value less costs to sell is the amount obtainable fromthe sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less the costs to sell. The value in use is calculated by using a discounted cash-flow model. Cash flows result
from plans. The recoverable value depends significantly on the discounting rate used in the discounted cash flow
model, as well as on expected future cash flows and the growth rate used for extrapolation. Key assumptions
used to determine the recoverable value for the various cash generating units, including a sensitivity analysis,
are described in Note 2.
Tax
Deferred tax assets are recognised to the extent that it is probable that there will be a taxed profit in the futuresuch that they can be used. Significant estimates by Management are required to determine the amount of tax
assets that can be recognised based on the level of future taxable profits, the timing of their occurrence, andtax planning strategies. Deferred tax liabilities for tax on retained earnings of subsidiaries, affiliates or joint
ventures are not recognised to the extent that it is probable that their distribution will not occur in the foreseeable future. Therefore, estimates by Management are required to determine the amount of tax assets that
may be recognised and tax liabilities that may not be recognised based on the level of future taxable profits,
the timing of their occurrence, and tax planning strategies. The long-term nature, as well as the complexityof regulations in various jurisdictions, differences arising between actual results and the assumptions made,or future changes in those assumptions, may require future adjustments to income tax and costs and benefits
already recorded.

88   Datalogic GroupFair value of financial instruments
When the fair value of a financial asset or liability recognised in the statement of financial position cannot bemeasured by relying on quotations in an active market, fair value is determined using various valuation techniques. Inputs included in this model are taken from observable markets where possible, otherwise, some degree of estimation is required to define fair values.
Development costs
The Group capitalises costs related to projects for the development of products. The initial cost capitalisation isbased on the confirmation by Management of the technical and economic feasibility of the project. In order to determine the amounts to be capitalised, the Directors assess the expected future cash flows related to the project,
as well as the discount rates to be applied and the periods when the expected benefits arise.
Share-based incentive plan - Equity-settled payment transactions
Certain employees of the Group receive a portion of their compensation as share-based payments. The cost ofequity-settled transactions is determined by the fair value of instruments at the date of the assignment. The cumulative costs recorded for such transactions at the end of each year up to the vesting date are commensuratewith the expiry of the vesting period and the best estimate of the number of equity instruments that will actually
vest. Evaluation processes and manners, as well as the determination of the abovementioned estimates, arebased on assumptions that, for their nature, involve reliance on the judgement of the Directors.
Other (Provisions for risks and charges, doubtful accounts, inventory write-down, revenue, discounts andreturns)
Provisions for risks are based on assessments and estimates based on historical experience and assumptions
that are deemed reasonable and realistic from time to time depending on the relevant circumstances.
The recognition process of Group revenue includes estimates related to both the amount of revenue, based on
the criterion of completion percentage, and the determination of discounts and returns granted to customers, but
still unclaimed. Evaluation processes and manners, as well as the determination of such estimates, are based onassumptions that, for their nature, involve reliance on the judgement of the Directors.

Datalogic Group   89

Consolidated Annual Financial Report at December 31, 2023

Management of financial risks
Risk factors
The Group is exposed to various types of financial risks in carrying out its business, including: market risk, specifically:͖ foreign exchange risk, relating to operations in currency areas other than the currency of denomination;
͖ interest rate risk, connected with the Group’s level of exposure to financial instruments, generating interest and recognised in the Statement of Financial Position;
 credit risk, deriving from trade transactions or from financing activities;
 liquidity risk, referring to the availability of financial resources and access to the credit market.
Financial risk management is an integral part of management of the Datalogic Group’s business activities. Market and liquidity risk management is carried out centrally by the Parent Company through the central treasury,
which acts directly on the market possibly also on behalf of subsidiaries and investees. Credit risk management
is instead assigned to the Group’s operating units.

Market risk
Foreign exchange risk
Datalogic operates internationally and is exposed to translational and transactional foreign exchange risk. Translational risk refers to the translation into Euro during consolidation of the financial statements of foreign companies
that have not adopted the Euro as functional and presentation currency. The key currencies are the US dollar, the Chinese Renminbi and the British pound. Transactional risk refers to trade transactions (foreign currency receivables/
payables) and financial transactions (foreign currency borrowings or loans) of Group companies in currencies otherthan their functional and presentation currency. The currency to which the Group is most exposed is the US dollar.
To enable full understanding of the impact of foreign exchange risk on the Group’s consolidated financial statements, a sensitivity analysis of foreign exchange balances to changes in the exchange rate was conducted. The
variability parameters applied were identified among the foreign exchange rate differences considered reasonably possible, with all other variables remaining equal.
The following table shows the results of the analysis at December 31, 2023:
USD

Nominal value

Exchange rates

Portion exposed to
exchange rate risk

5%

-5%

1.10501.16031.0498Financial assets
Cash and cash funds

70,62923,353(1,112)

1,229

Trade and other receivables

71,33031,080(1,480)

1,636

Loans

105,950

731

35

(38)

Trade and other payables

133,030

64,614

3,077(3,401)

520

(574)

Financial liabilities

Net impact on Income Statement

90   Datalogic GroupCNY

Nominal value

Exchange rates

Portion exposed to
exchange rate risk

5%

-5%

7.85098.24347.4584

Financial assets
Cash and cash funds

70,629

5,156

(246)

271

Trade and other receivables

71,330

5,633

(268)

296

Loans

105,950

1,515

72

(80)

Trade and other payables

133,030

1,959

93

(103)

(348)

385

Financial liabilities

Net impact on Income Statement

At December 31, 2023, the Group has no financial instruments to hedge changes in foreign exchange rates.
Interest rate risk
The Datalogic Group is exposed to interest rate risk associated with the financial assets and liabilities in place.
The aim of interest rate risk management is to limit and stabilize the negative effects on cash flows subject tochanges in interest rates. At December 31, 2023, the Group has no financial instruments to hedge changes ininterest rates.
To enable full understanding of the potential effects of rate fluctuations the Group is subject to, a sensitivity analysis was carried out on the items most subject to risk, assuming a change in the interest rate for Euro and USD
underlyings of 75 basis points and the interest rate for CNY underlyings of 10 basis points. It should be notedthat the Group’s main bank loan is fixed-rate. The analysis was carried out on reasonable assumptions, and theresults are shown below with regard to the date of December 31, 2023:
EUR

Nominal value

Portion exposed tointerest rate risk

+75bp

-75bp

107,482

33,890254(254)

149,489

10,553

(79)

79

175

(175)

Financial assets
Cash and cash funds
Financial liabilities
Loans
Net impact on Income Statement
USD

Nominal value

Portion exposed tointerest rate risk

+75bp

-75pb

107,482

23,353

175(175)

149,489

731

(5)

5

170

(170)

Financial assets
Cash and cash funds
Financial liabilities
Loans
Net impact on Income Statement

Datalogic Group   91Consolidated Annual Financial Report at December 31, 2023

CNY

Nominal value

Portion exposed tointerest rate risk

+10bp

-10bp

107,482

5,156

5

(5)

149,489

1,515

(2)

2

3

(3)

Financial assets
Cash and cash funds
Financial liabilities
Loans
Net impact on Income Statement

Credit risk
The Group is exposed to the credit risk associated with commercial transactions and has therefore put in placerisk protection measures to minimize non-performing amounts through timely monitoring of overdue receivables, management of customer credit limits, and collection of financial information of companies with higher
exposure. Much of Datalogic’s business is conveyed on a network of well-known customers/distributors, who
statistically have no credit recoverability issues. Customers requesting deferred conditions of payment are subject to screening procedures concerning their creditworthiness (degree of solvency and reliability). Trade receivables are subject to individual impairment testing if they show potential and significant impairment indicators.
The Group protects itself against credit risk also through factoring instruments without recourse. At December
31, 2023, factored trade receivables amounted to €30,218 thousand (€29,877 thousand at end 2022).
The maximum exposure to credit risk on the balance sheet date is the book value of each class of financial asset
presented in Note 5.
Liquidity risk
The Datalogic Group’s liquidity risk is minimized by the timely management by the Parent Company’s treasury department. Bank debt and liquidity are managed centrally through financial resource optimization tools, including
cash pooling. The Parent Company manages and negotiates medium/long-term loans and credit lines to meet
the Group’s requirements. Centralized negotiation of credit lines and loans, together with management of theGroup’s cash resources, are aimed at optimizing financing costs.
It should be noted that at December 31, 2023, the Group’s liquidity reserve – which includes uncommitted but
undrawn credit lines - amounts to €188 million and is considered adequate to meet commitments existing as ofthe date the financial statements were drawn up.

92   Datalogic GroupThe following table shows financial liabilities by maturity:
December 31, 2023
0 - 1 year

1 - 5 years

Loans

14,42878,334

Financial payables from leases

3,863

5,856

Bank overdrafts

149

149

Other financial payables

817

817

Payables to factoring companies

592

592

Trade and other payables

133,030

19,993

Total

152,879

104,183

over 5 years

Total
92,762
11,6301,911

153,023
1,911

258,973

Changes in liabilities resulting from cash flows
The change in financial liabilities is shown below with a distinction between the current (C) and non-current (NC) portions.
Financial liabilities - Loans

01.01.2023

Bank loans

FactoringpayablesCNC

63,81067,105

New loans

C

C
2,229

25,000

Repayments(63,189)

Transfers

13,771

Lease payables(1,637)(13,771)

NC

Other
financialpayablesBank
overdrafts

C

C

4,164

11,962

53

1,845

4,503

764

166

(17)

0

Exchange differences

(46)

(46)

36

36

Other movements
31.12.2023(69,259)
0(4,171)

Chg. Consolidation scope

Chg. Amort. Cost

149,489
32,112(4,416)
4,171

Total

14,42878,334592(1,855)(4,527)

3,863

7,767

(6,382)817

149

105,950

The Group manages capital with the intention of protecting its own continuity and optimizing shareholder value,
maintaining an optimal capital structure while reducing its cost. In line with sector practice, the Group monitors capital based on the gearing ratio. This is expressed by the ratio between net debt and total capital as explained below.
31.12.2023

31.12.2022

Net debt (A)35,32142,007

Equity (B)411,131451,567

Total capital [(A)+(B)]=C

446,452

493,574“Gearing ratio” (A)/(C)

7.91%

8.51%

Datalogic Group   93Consolidated Annual Financial Report at December 31, 2023

Segment disclosure
Operating segments are identified based on operating reports used at the highest decision-making level to allocate resources and assess results. Transfers amongst the operating segments indicated hereunder are executedat arm’s length conditions, based on the Group transfer pricing policies.
 Datalogic, the Group’s core business, designs and produces barcode readers, mobile computers, detection,measurement and safety sensors, vision and laser marking systems and RFID that help increase the efficiency and quality of processes in the Data Capture and Industrial Automation areas in which it operates.
 Informatics sells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium-sized companies.
The income information related to the operating segments at December 31, 2023 and at December 31, 2022
is the following:
Datalogic
Business

Informatics

Adjustments

Total Group31.12.2023

Revenue

520,207

16,977(567)

536,617

Adjusted EBITDA

45,9293,355

172

49,456% Revenue

8.83%

19.76%

6,320

3,116

172

9,608

Datalogic
Business

Informatics

Adjustments

Total Group31.12.2022

Revenue638,273

18,198(1,839)654,632

Adjusted EBITDA

77,862

2,672

(248)

80,286% Revenue

12.20%

14.68%

38,831

2,348

Divisional income position

EBIT

Divisional income position

EBIT

94   Datalogic Group

9.22%

12.26%(244)

40,935

The equity information related to the operating segments at December 31, 2023 and at December 31, 2022 is
the following.
Datalogic
Business

Informatics

Adjustments

Total Group31.12.2023

Total Assets

726,392

29,433(36,322)719,503

Total Liabilities

308,764

8,099(8,491)

308,372

Equity417,628

21,334(27,831)

411,131

Datalogic
Business

Informatics

Adjustments

Totale Gruppo
31.12.2022

Total Assets

848,979

28,416(31,884)

845,511

Total Liabilities

392,016

8,666(6,738)393,944

Equity456,963

19,750(25,146)

451,567

Divisional financial position

Divisional financial position

Datalogic Group   95Consolidated Annual Financial Report at December 31, 2023

INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITIONASSETS
Note 1. Tangible fixed assets
Tangible fixed assets at December 31, 2023 amounted to €94,040 thousand. During the year, net expenditure of€8,019 thousand and depreciation of €11,915 thousand were recognised, while exchange rate effects closed witha negative €972 thousand. The breakdown of the item at December 31, 2023 and at December 31, 2022 is shown
below.
31.12.2023

31.12.2022

ChangeLand12,597

12,740(143)

Buildings

51,52052,449(929)

Other assets

26,892

29,825(2,933)Fixed assets under construction and advances

3,031

3,785

(754)

94,04098,799(4,759)Total“Other assets” at December 31, 2023 includes the following categories: industrial equipment and moulds (€12,267
thousand, of which expenditure for €932 thousand), plant and machinery (€6,448 thousand, of which expenditurefor €3,638 thousand), office furniture and machinery (€4,646 thousand, of which expenditure for €784 thousand),generic plant related to buildings (€2,365 thousand), lightweight constructions (€237 thousand), commercial
equipment and demo rooms (€518 thousand), leasehold improvements (€313 thousand) and motor vehicles (€98
thousand).
The balance of “Fixed assets under construction and advances”, equal to €3,031 thousand, is composed primarilyof moulds under construction and equipment and production lines built in house, and of improvements to ownedbuildings.

96   Datalogic GroupDetails of changes at December 31, 2023 and at December 31, 2022 are as follows:Land

Buildings

Other assets

Fixed assets
underconstruction andadvances

Total

12,74063,515

171,586

3,785

251,626-(11,066)(141,761)-(152,827)

12,74052,44929,825

3,785

98,799

Capital expenditure

-

743

5,714

1,806

8,263

Total

-

743

5,714

1,806

8,263

-

-

(5,222)(6)(5,228)

-

5,093

5,093

(1,174)(10,741)(11,915)-(1,174)(10,870)(6)(12,050)

-

-

2,116

(2,568)(452)

Historical cost
Accumulated depreciation
Net book value at 01.01.2023
Increases 31.12.2023

Decreases 31.12.2023
Disposals, historical cost
Disposals, accum. depreciation
Depreciation
Total
Other changes 31.12.2023
Incoming transfers at historical cost
(Outgoing transfers, accum. depreciation)
Exchange diff. in historical cost

452
(143)

Exchange diff. in accum. depreciation(591)(1,459)

93

1,114

452
14

(2,179)
1,207

Total

(143)

(498)

2,223

(2,554)(972)

Historical cost

12,597

63,744

172,809

3,031

252,181-(12,224)(145,917)-(158,141)

12,59751,52026,892

3,031

94,040

Accumulated depreciation
Net book value at 31.12.2023

Datalogic Group   97Consolidated Annual Financial Report at December 31, 2023

Land

Buildings

Other assets

Fixed assets
underconstruction andadvances

Total

12,52462,352

163,492

4,007

242,375-(9,703)(130,892)-(140,595)

12,52452,64932,600

4,007

101,780

Capital expenditure

-

157

6,661

2,214

9,032

Change in consolidation scope

-

-

14

3

17

Total

-

157

6,675

2,217

9,049

-

(34)

(6,257)(6,291)

Disposals, accumulated depreciation

33

6,200

6,233

Change in consolidation scope

0

(10)

(10)

(1,202)(12,193)(13,395)-(1,203)(12,260)-(13,463)

-

54

5,674

(2,418)3,310

Historical cost
Accumulated depreciation
Net book value at 01.01.2022
Increases 31.12.2022

Decreases 31.12.2022
Disposals, historical cost

Depreciation
Total
Other changes 31.12.2022
Incoming transfers at historical cost
(Outgoing transfers, accum. depreciation)
Exchange diff. in historical cost

(3,310)
216

986

2,002

(194)

(1,556)

216

846

2,810

(2,439)1,433

12,74063,515

171,586

3,785

251,626-(11,066)(141,761)-(152,827)

12,74052,44929,825

3,785

98,799Exchange diff. in accum. depreciation
Total
Historical cost
Accumulated depreciation
Net book value at 31.12.2022

98   Datalogic Group

(3,310)(21)

3,183(1,750)Note 2. Intangible fixed assets
Intangible fixed assets at December 31, 2023 amounted to €294,197 thousand. During the year, net expenditureof €18,404 thousand and amortisation of €20,963 thousand was recognised, while exchange rate effects closedwith a negative €7,258 thousand. The breakdown of the item at December 31, 2023 and at December 31, 2022 isshown below:
31.12.2023

31.12.2022

ChangeGoodwill

205,352

212,043(6,691)Development costs

42,034

27,20914,825

Other

36,075

43,206(7,131)

Fixed assets under construction and advances

10,736

21,556(10,820)

294,197

304,014(9,817)

Total

Details of changes at December 31, 2023 and at December 31, 2022 are as follows:
Goodwill

Development
costs

Other

Fixed assets
under construction
and advances

Total

212,043

68,407

190,716

21,556

492,722(41,198)(147,510)

27,20943,206

21,556

304,014

Capital expenditure

7,236

1,713

9,681

18,630

Total

7,236

1,713

9,681

18,630

Disposals, historical cost

(2,872)(225)(3,097)

Disposals, accum. amortisation

2,871

2,871
(20,963)

Historical cost
Accumulated amortisation
Net book value at 01.01.2023

212,043(188,708)

Increases 31.12.2023

Decreases 31.12.2023

Amortisation(12,662)(8,301)

Total(12,662)(8,302)(225)

Incoming transfers at historical cost

21,011(786)(20,225)(Outgoing transfers, accum. amortisation)

(729)

729

(349)

(3,749)

318

3,264

(21,189)

Other changes 31.12.2023

Exchange diff. in historical cost

(6,691)

Exchange diff. in accum. amortisation(51)(10,840)
3,582

Total

(6,691)

20,251(542)(20,276)(7,258)

Historical cost

205,352

96,305

185,022

10,736497,415(54,271)(148,947)

42,03436,075

Accumulated amortisation
Net book value at 31.12.2023

205,352(203,218)
10,736294,197

Datalogic Group   99Consolidated Annual Financial Report at December 31, 2023

Goodwill

Development
costs

Other

Fixed assets
under construction
and advances

Total

193,497

54,055

175,382

20,142443,076(32,269)(135,679)

21,78639,703

20,142

275,128

3,770

1,357

12,24917,376

10,761

44

18,412

3,770

12,11812,29335,788(7)(2,417)(2,424)

Disposals, accum. amortisation

2,397

2,397

Change in consolidation scope

(331)

(331)

Historical cost
Accumulated amortisation
Net book value at 01.01.2022

193,497(167,948)

Increases 31.12.2022
Capital expenditure
Change in consolidation scope

7,607

Total

7,607

Decreases 31.12.2022
Disposals, historical cost

Amortisation(8,879)(9,639)(18,518)

Total(8,886)(9,990)(18,876)

10,111

(722)

425

1,062

478

6,355

(475)

(5,320)

Other changes 31.12.2022
Incoming transfers at historical cost
(Outgoing transfers, accum. amortisation)
Exchange diff. in historical cost

10,939Exchange diff. in accum. amortisation(10,876)(1,487)1,487(3)

17,769(5,795)

Total

10,93910,5391,375(10,879)

11,974

Historical cost

212,043

68,407

190,716

21,556

492,722(41,198)(147,510)

27,20943,206

Accumulated amortisation
Net book value at 31.12.2022

212,043(188,708)
21,556

304,014Goodwill“Goodwill”, equal to €205,352 thousand, is allocated to the CGUs identified by Management as shown below.
31.12.2023

31.12.2022

ChangeDatalogic CGU

191,690

197,989(6,299)

Informatics CGU

13,662

14,054(392)

205,352

212,043(6,691)Total

The change from the end of the prior year is attributable to translation differences.

100   Datalogic Group

Goodwill is allocated to the CGUs (Cash Generating Units) represented by the individual companies and/or subgroups to which they refer.
The estimated recoverable value of each CGU, associated with each Goodwill item measured, consists of its
corresponding value in use. Value in use was calculated by discounting at a given discount rate the future cash
flows expected to be generated by the CGU, in the production phase and at the time of its disposal, based on the
Discounted Cash Flow method.
The cash flows of the individual CGUs are estimated based on forward-looking plans prepared by Management.
These plans represent the best estimate of the foreseeable outlook, based on the business strategies and growthindicators of the relevant industry and markets.
The assumptions used for the purposes of impairment were approved by the Board of Directors and the Control,
Risks, Remuneration and Appointments Committee of Datalogic S.p.A. on February 13, 2024.
Based on an Unlevered approach, the Group used, through the DCF method, Unlevered Free Cash Flows from­Operations (FCFO). The flows expected for the period 2024 - 2028, subject to an explicit forecast, are complemented by the flows related to so-called Perpetuity, which is representative of the Terminal Value. This was calculated using a 3% growth rate g, which represents the long-term expectations for growth.
The discount rate, consisting of the weighted average cost of invested capital (WACC), was estimated before tax
and based on the financial structure of the Datalogic Group’s industry. The WACC used, ranging from 8.41% to9.01% for the respective CGUs measured, reflects the return-opportunity for all capital contributions, in whatevercapacity made.
The following table shows the values of Goodwill and the discount (WACC) and long-term growth (g) rates used
for testing purposes at year-end:

Goodwill
Weighted average cost of capital (WACC)
Long-term growth rate (G)Datalogic CGU

Informatics

191,690

13,662

8.41%

9.01%

3%

3%

The impairment tests carried out according to the above methods did not indicate any impairment losses, as
the recoverable value of the CGUs at December 31, 2023 was higher than the corresponding net invested capital(carrying amount).
While the market capitalisation of Datalogic S.p.A. is lower than the consolidated equity of the Group, theDirectors did not deem it necessary to prepare a second level impairment test on the entire Datalogic Group.

Datalogic Group   101

Consolidated Annual Financial Report at December 31, 2023

DATALOGIC CGU
The recoverable amount of the Datalogic CGU was determined on the basis of the calculation of the value in use,
adopting the cash flow projections from the plan prepared by Management based on the assumptions approvedby the Board of Directors. The discount rate applied to cash flow projections is 8.41% (9.55% in 2022), and cash
flows beyond five years were estimated using a 3% growth rate (in line with 2022). During testing for impairment,
goodwill of the Datalogic CGU confirmed its carrying amount.
With regard to this CGU, an alternative scenario was also prepared, reducing cash flows from operations by 25%
compared to the base scenario and keeping WACC and g unchanged, without showing impairment situations.
Informatics CGU
Goodwill attributed to the Informatics CGU results from the acquisition of the investee Informatics Inc. in 2005.
The recoverable amount of the Informatics CGU was determined on the basis of the calculation of the value in use,
adopting the cash flow projections from the plan prepared by Management based on the assumptions approvedby the Board of Directors. The discount rate applied to cash flow projections is 9.01% (9.78% in 2022), and cash
flows beyond five years were drawn using a 3% growth rate (in line with 2022). During testing for impairment,
goodwill of the Informatics CGU confirmed its carrying amount.
Sensitivity to changes in assumptions
The calculation of value in use for selected CGUs is related to the following assumptions: gross margin; discount rates; growth rate used to calculate cash flows after the forecast period.
Gross margin - The forecast of gross margin over the plan years was prepared by the Directors based on ­historical
data of the Group’s CGUs and taking account of expectations of trends in the relevant markets and the effects ofplanned strategies. A decrease in demand and deteriorating economic conditions, for example due to inflationary
effects, can lead to a reduction in gross margin, and impairment.
Discount rates – Discount rates reflect the market assessment of the specific risk of each cash-generating unit,
considering the time value of money and the specific risks of the underlying assets that have not already been
included in the cash flow estimate. The calculation of the discount rate is based on Group specific circumstances
and its operating segments, and it derives from its weighted average cost of capital (WACC).
Estimates of growth rates – The rates are based on business sector analyses. Management acknowledges thatthe speed of technological development and the possible entry of new players in the market may have a significant impact on the growth rate.
The sensitivity analyses were carried out assuming changes in the abovementioned key assumptions. Sensitivity analyses were based on the changes occurring in certain key assumptions, keeping all other assumptions­unchanged.
Specifically, the Directors point out that the sensitivity analyses carried out did not show any critical situations.

102   Datalogic GroupDevelopment costs, Other intangible fixed assets and fixed assets under construction and advances“Development costs”, amounting to €42,034 thousand at December 31, 2023 (€27,209 thousand at December
31, 2022), consists of product development projects. The increase for the year was due mainly to the completionof a number of major projects that were recorded at December 31, 2022 as fixed assets under construction (referto the comments in the “research and development” section of the Report with regard to the main new productlaunches that took place during the year).
“Other”, amounting to €36,075 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, and software licences as detailed below:
31.12.2023

31.12.2022

ChangePatents

3,681

5,710

(2,029)Know-how

12,533

14,483(1,950)

Customer portfolio

10,943

11,842(899)

Licenses

880

1,662

(783)

Software

8,038

9,508

(1,470)Total

36,075

43,206(7,131)“Fixed assets under construction and advances”, amounting to €10,736 thousand (€21,556 thousand at December 31, 2022), is attributable mainly to the capitalisation of costs for product development projects currently
under way.

Note 3. Right of use fixed assets
Net negative changes of €23 thousand were recorded during the year and depreciation of €4,178 thousand, while
exchange rate effects closed with a negative €111 thousand. The breakdown of the item at December 31, 2023
and at December 31, 2022 is shown below.
31.12.2023

31.12.2022

ChangeBuildings

9,181

13,590(4,409)Vehicles

2,122

1,997

125

Office equipment

143

171

(28)

11,44615,758(4,312)

Total

Datalogic Group   103

Consolidated Annual Financial Report at December 31, 2023

Details of changes at December 31, 2023 and at December 31, 2022 are as follows:
Buildings

VehiclesOffice equipment

Total

Historical cost

20,7484,785

374

25,907

Accumulated depreciation(7,158)(2,788)(203)(10,149)

Net book value at 01.01.2023

13,5901,997

17115,758

Increases from changes in contracts

7,534

1,392

51

8,977

Total

7,534

1,392

51

8,977

(10,086)(1,161)-(11,247)

Decreases in accumulated depreciation from changes in contracts

1,234

1,013

-

2,247

Depreciation(2,972)(1,130)(76)(4,178)(11,824)(1,278)(76)(13,178)

Exchange diff. in historical cost

(319)

15

(6)

(310)

Exchange diff. in accum. depreciation

200

(4)

3

199

Total

(119)

11

(3)

(111)

Historical cost

17,877

5,031

419

23,327

Accumulated depreciation(8,696)(2,909)(276)(11,881)

Net book value at 31.12.2023

9,181

2,122

143

11,446

Increases 31.12.2023

Decreases 31.12.2023
Decreases in historical cost from changes in contracts

Total
Other changes 31.12.2023

104   Datalogic GroupBuildings

VehiclesOffice equipment

Total

Historical cost

20,143

4,537

309

24,989

Accumulated depreciation(5,154)(2,563)(134)(7,851)

Net book value at 01.01.2022

14,9891,974

175

17,138

Increases from changes in contracts

2,096

1,367

74

3,537

Total

2,096

1,367

74

3,537

Decreases in historical cost from changes in contracts(1,451)(1,124)(14)(2,589)Decreases in accumulated depreciation from changes in contracts

1,174

982

14

2,170

Depreciation(3,230)(1,206)(81)(4,517)

Total(3,507)(1,348)(81)(4,936)

Exchange diff. in historical cost

(40)

5

5

(30)

Exchange diff. in accum. depreciation

52

(1)

(2)

49

Total

12

4

3

19

Historical cost

20,7484,785

374

25,907

Accumulated depreciation(7,158)(2,788)(203)(10,149)

Net book value at 31.12.2022

13,5901,997

17115,758

Increases 31.12.2022

Decreases 31.12.2022

Other changes 31.12.2022

Note 4. Investments in associates
Non-controlling investments held by the Group, details of which can be found in Annex 2, amounted to €640
thousand December 31, 2023 (€560 thousand at December 31, 2022).

Datalogic Group   105

Consolidated Annual Financial Report at December 31, 2023

Note 5. Financial assets and liabilities by category
The table below provides a breakdown of “Financial assets and liabilities” under IFRS 9.
Financial assets
Financial assets at Financial assets at FV
amortised cost through profit and loss

Financial assets at FV
through OCI

31.12.2023

Non-current financial assets

2,839

2,624

99

5,562

Non-current financial assets and investments

2,055

2,624

99

4,778

Other receivables

784

-

-

784

141,175--

141,175

Trade receivables

52,093--52,093

Other receivables

18,453--18,453

Cash and cash equivalents

70,629--70,629144,0142,624

99

146,737

Financial assets at Financial assets at FV
amortised cost through profit and loss

Financial assets at FV
through OCI

31.12.2022

Current financial assets

Total

Non-current financial assets

2,975

1,611

4,301

8,887

Non-current financial assets and investments

2,207

1,611

4,301

8,119

Other receivables

768

-

-

768

217,327--

217,327

Trade receivables

91,299--91,299Other receivables

18,546--

18,546

Cash and cash equivalents

107,482--

107,482

Total

220,302

1,611

4,301

226,214

Current financial assets“Cash and cash equivalents” amounted to €70,629 thousand. Details are found in the Net Financial Debt schedulein the Report on Operations.

106   Datalogic GroupFinancial liabilities
Derivatives

Financial liabilities atamortised cost

31.12.2023

Non-current financial liabilities-

106,094

106,094

Financial payables-

86,101

86,101Other payables-

19,99319,993Current financial liabilities-

152,879

152,879

Trade payables-

83,51583,515

Other payables-

49,51549,515Current financial payables-

19,84919,849

Total-

258,973

258,973

Derivatives

Financial liabilities atamortised cost

31.12.2022

Non-current financial liabilities-

99,827

99,827

Financial payables-

79,06779,067

Other payables-

20,76020,760Current financial liabilities-

237,135

237,135

Trade payables-

112,054

112,054

Other payables-

54,65954,659Current financial payables-

70,42270,422

Total-

336,962

336,962

The fair value of financial assets and financial liabilities is determined according to methods classifiable in thevarious levels of the fair value hierarchy as envisaged by IFRS 13. Specifically, the Group uses internal valuation models generally used in financial practice, based on prices provided by market participants or quotations­recorded on active markets.

Datalogic Group   107

Consolidated Annual Financial Report at December 31, 2023

Fair value - hierarchy
All the financial instruments measured at fair value are classified in the three categories shown below:
Level 1: market prices;
Level 2: valuation techniques (based on observable market data);
Level 3: valuation techniques (not based on observable market data).
Assets measured at fair value

Level 1

Level 2

Level 331.12.2023

Non-current financial assets and investments

99

-

2,624

2,723

Total

99

-

2,624

2,723

Note 6. Financial assets and current financial receivables
Financial assets include the following:
31.12.2023

31.12.2022

ChangeNon-current financial assets

4,778

8,119

(3,341)

Total

4,778

8,119

(3,341)

Non-current financial assets amounted to €4,778 thousand. The main changes during the year refer to a 2.13%
investment in the capital of Oversonic Robotics S.r.l. for the amount of €1,000 thousand, to the disposal of the
15% stake still held in Solution Net Systems LLC (SNS) by the subsidiary Datalogic USA Inc., and to the divestment of part of the capital held in the Japanese company Idec Corporation.
The change in “Non-current financial assets” is detailed below:
2023

2022

At January 1

8,119

11,805Acquisitions (Disposals)(2,591)(5,594)-

2,207

Gains (Losses) recognised in OCI

(683)

(124)

Gains/(Losses) recognised in the income statement

(34)

(224)

Exchange rate adjustments

(33)

49

4,778

8,119

Reclassification

At December 31

108   Datalogic GroupNote 7. Trade and other receivables
The breakdown of the item at December 31, 2023 and at December 31, 2022 is shown below:
31.12.2023

31.12.2022

ChangeTrade receivables

46,06584,880(38,814)

Contract assets - Invoices to be issued

6,145

6,385

(241)

Bad debt provisions(1,471)(2,838)

1,367

Net trade receivables

50,73988,427(37,688)

Receivables from associates

1,346

2,861

(1,515)

8

11

(3)

Sub-total - Trade receivables

52,09391,299(39,206)

Other receivables - current accrued income and prepaid expense

18,453

18,546

(93)

784

768

16

19,237

19,314

(77)

784

768

16

70,546

109,845(39,299)

Receivables from related parties

Other receivables - non-current accrued income and prepaid expense
Sub-total - Other receivables - accrued income and prepaid expense
Less: non-current portion
Trade and other receivables - current

Trade receivables“Trade receivables”, amounting to €52,093 thousand at December 31, 2023, is shown net of the estimated portionof credit notes to be issued for discounts to be granted to distributors amounting to €11,242 thousand (versus€24,349 thousand at December 31, 2022). The decrease in receivables of €39,206 thousand is in line with therevenue performance for the year, with particular regard to the second half of 2023. At December 31, 2023, tradereceivables factored without recourse amounted to €30,218 thousand (versus €29,877 thousand at December
31, 2022). Trade receivables from associates arise from commercial transactions carried out at normal market
conditions.
At December 31, 2023, the breakdown of the item by maturity, versus the prior year, was as follows:
31.12.2023

31.12.2022

Not overdue

41,50675,051

Past due by 30 days

8,220

13,172

Past due by 31 - 90 days

3,129

3,523

Past due by more than 90 days

709

2,391

Bad debt provisions(1,471)(2,838)

Total

52,09391,299

Datalogic Group   109

Consolidated Annual Financial Report at December 31, 2023

The following table shows the breakdown of trade receivables by currency at December 31, 2023 and at­December 31, 2022:
31.12.2023

31.12.2022

US Dollar (USD)

24,292

32,697

Euro (EUR)

18,94439,375Chinese Renminbi (CNY)

5,039

11,215British Pound Sterling (GBP)

1,968

4,150

Japanese Yen (JPY)

1,083

2,379

Australian Dollar (AUD)

562

1,273

Vietnam Dong (VND)

115

92

Czech Crown (CZK)

85

113

Swedish Krona (SEK)4

5

Hungarian Forint (HUF)

1

1

52,09391,299Total

Receivables from customers are entered net of bad debt provisions totalling €1,471 thousand (€2,838 thousand
at December 31, 2022). Changes in bad debt provisions during the year were as follows:
2023

2022

Change

2,838

2,657

181

Exchange difference

(9)

17

(26)

Allocations

116

818

(702)

Releases(1,389)(267)(1,122)

Utilisations

(85)

(387)

302

1,471

2,838

(1,367)

At January 1

At December 31

110   Datalogic GroupOther receivables - accrued income and prepaid expense
The details of “Other receivables - accrued income and prepaid expense” are shown below.
31.12.2023

31.12.2022

ChangeOther current receivables

3,232

1,639

1,593

Other non-current receivables

784

768

16

VAT receivables

11,88912,972(1,083)

Accrued income and prepaid expense

3,332

3,935

(603)

19,237

19,314

(77)

Total

The “VAT receivable” of €11,889 thousand refers to normal commercial transactions.
The “Accrued income and prepaid expense” item is composed mainly of the recognition of insurance contracts
and hardware and software licenses.

Note 8. Inventory
Inventory amounted to €102,462 thousand at December 31, 2023, down by €27,362 thousand, due partly to decreased inventory levels and partly to the diminishing impact of inflationary effects seen in prior years.
31.12.2023

31.12.2022

ChangeRaw and ancillary materials and consumables

51,00262,503(11,501)

Work in progress and semi-finished products

18,69025,864(7,174)

Finished products and goods

32,77041,457(8,687)

102,462

129,824(27,362)

Total

Inventory is shown net of an obsolescence provision totalling €15,482 thousand at December 31, 2023 (€12,387
thousand at December 31, 2022).
Changes in the obsolescence provision at December 31, 2023 and at December 31, 2022 are shown below:
2023

2022

12,387

10,777

Exchange differences

(97)

68

Allocations

4,810

3,001

Releases/Utilisations(1,618)(1,459)At December 31

15,482

12,387

At January 1

Datalogic Group   111

Consolidated Annual Financial Report at December 31, 2023

Note 9. Tax receivables and payables

Tax receivablesof which Parent Company
Tax payablesof which Parent Company
Total

31.12.2023

31.12.2022

Change12,662

14,135(1,473)-

1,807(1,807)(9,388)(13,478)

4,090-(2,013)

2,013

3,274

657

2,617

At December 31, 2023, the net balance of “Tax Receivables and Payables” was positive and equal to €3,274 thousand versus a positive 657 thousand at December 31, 2022, marking a positive change of €2,617 thousand.

112   Datalogic GroupLIABILITIES AND EQUITY
Note 10. Equity
Equity at December 31, 2023 is broken down as follows.
31.12.2023

31.12.2022

ChangeShare capital

30,39230,392-

Share premium reserve

111,779

111,779-

Treasury shares held in portfolio(41,962)(22,191)(19,771)

Share capital and reserves

100,209

119,980(19,771)

27,48239,331(11,849)

913

3,347

(2,434)Retained earnings

269,731

255,840

13,891

Profit for the year

9,859

29,550(19,691)

Total Group equity

408,194

448,048(39,854)

Profit (loss) for the year attributable to non-controlling interests

(373)

576

(949)

Share capital attributable to non-controlling interests

3,310

2,943

367

Total equity attributable to non-controlling interests

2,937

3,519

(582)

411,131451,567(40,436)

Translation reserve
Other reserves

Total consolidated equity

Share capital
At December 31, 2023, the share capital of €30,392 thousand represents the fully subscribed and paid-up sharecapital of the Parent Company Datalogic S.p.A.. It comprises ordinary shares for a total of 58,446,491, of which
4,800,000 held as treasury shares for a value of €41,962 thousand, therefore the outstanding shares at that dateamounted to 53,646,491.
Number of Share capitalshares01.01.2023

56,779,438

Purchase of treasury shares(3,132,947)

30,392Sharecancellation
reserve
2,813

Purchase/sale expense
31.12.2023

Treasury
Treasuryshares held share reservein portfolio

Sharepremium
reserve

Total(22,191)

29,651

79,315

119,980(19,766)

19,766(19,766)(19,766)(5)(5)
53,646,491

30,392

2,813(41,962)

49,41759,549100,209

Other Reserves
At December 31, 2023, the “Reserve for treasury shares held in portfolio” decreased by €19,766 thousand, due tothe purchase of treasury shares (net of purchase costs).

Datalogic Group   113

Consolidated Annual Financial Report at December 31, 2023

The “Translation reserve” decreased by €11,849 thousand, due mainly to the effects of the trend of the U.S. dollar,
the functional currency of a number of the Group’s main investees; part of the change is attributable to the gains/losses generated by the monetary elements that are an integral part of the net investment in foreign operations,and refers to the effect of year-end foreign exchange valuation related to receivables for loans in U.S. dollars
granted by the parent company Datalogic S.p.A. to the Group company Datalogic Hungary; there is no specified
settlement or repayment plan, and the repayment is not expected to occur in the foreseeable future.
At December 31, 2023, “Other reserves”, including the “Share-based incentive plan reserve”, amounted to €913
thousand (€3,347 thousand at December 31, 2022). The change is related mainly to the reclassification to retained earnings from the sale of financial instruments.

Note 11. Financial payables“Financial payables” at December 31, 2023 amounted to €105,950 thousand, down by €43,539 thousand as detailed below.
31.12.2023

31.12.2022

ChangeBank loans

92,762130,915(38,153)

Financial payables from leases

11,63016,126(4,496)

Payables to factoring companies

592

2,229

(1,637)

Other financial payables

817

53

764

Bank overdrafts

149

166

(17)

105,950

149,489(43,539)Total

The change in “Bank loans” for the year is a result of the payment of instalments falling due and the repayment ofcredit lines totalling €63,189 thousand and the granting of the last portion of the credit line of €25,000 thousand
under the long-term loan named “Roller Coaster”.
The movements are shown below:
2023

2022

At January 1

130,915

113,206

Increases

25,00070,000Decreases from borrowing repayments(63,189)(52,579)36

288

92,762130,915

Other changes
At December 31“Financial payables from leases” decreased by €4,496 thousand.

114   Datalogic GroupThe breakdown of financial payables, divided into current and non-current portions, is shown below:
31.12.2023

31.12.2022

ChangeNon-current financial payables

86,101

79,067

7,034

Current financial payables

19,84970,422(50,573)

105,950

149,489(43,539)Total

At December 31, 2023, the Group had credit lines in place for a total of approximately €281 million, of which­approximately €188.0 million undrawn, including €100.0 million long-term and €88.0 million short-term.
Covenants
Certain loan agreements require the Group to comply with financial covenants, measured on a half-year basis atJune 30 and December 31, summarized in the following table:
Loan

Company

Covenants

Frequency

Reference
financial statements

RCF

Datalogic S.p.A. PFN/EBITDA

4.5x; 4.0x (*)

half-year

Consolidated

Roller Coaster

Datalogic S.p.A. PFN/EBITDA

3,0x

half-year

Consolidated* 4.5x at June and 4.0x at December

At December 31, 2023, all covenants were complied with.

Note 12. Net deferred tax
Deferred tax assets and deferred tax liabilities result both from positive items already recognised in the income
statement and subject to deferred taxation under current tax regulations and temporary differences between
recorded assets and liabilities and their relevant taxable value.
Deferred tax assets are accounted for in accordance with the assumptions of future recoverability of the temporary differences they originated from, i.e., on the basis of strategic economic and tax plans.

Datalogic Group   115

Consolidated Annual Financial Report at December 31, 2023

Temporary differences generating deferred tax assets consist mainly of tax losses and tax paid abroad, provisions
for risks and charges, and foreign exchange adjustments. Deferred tax liabilities are attributable mainly to temporary differences in exchange rate adjustments and statutory and tax differences in the amortisation/depreciation schedules of tangible and intangible fixed assets and fair value measurements of assets as part of businesscombinations carried out by the Group.
31.12.2023

31.12.2022

ChangeDeferred tax assets

57,31956,207

1,112

Deferred tax liabilities(26,334)(28,680)

2,346

Net deferred tax

30,98527,527

3,458

Deferred tax assets amounted to €57,319 thousand and included foreign tax credits attributable mainly to thesubsidiary Datalogic USA Inc. The increase in deferred tax assets is attributable to tax losses generated during
the year net of decreases associated with tax effects related to consolidation processes, as well as temporary tax
differences of a different nature that are expected to allow benefits in later years.
The Provision for deferred tax liabilities at December 31, 2023 amounted to €26,334 thousand and refers mainly
to temporary differences related to asset depreciation/amortisation schedules, as well as tax adjustments resulting from the consolidation processes of recent acquisitions made by the Group.

116   Datalogic GroupThe main items composing deferred tax assets and deferred tax liabilities and changes during the year are shown
below:
Deferred tax assets

31.12.2022

Allocated(released) toIncome Statement

Allocated(released)
to Equity

Exchangedifferences

31.12.2023

Receivables, foreign tax

20,151(1,627)-(430)

18,094

Exchange differences

1,437

(116)

-

(29)

1,292

Differences Depreciation/Amortisation

2,580

182

-

(39)

2,723

Asset write-downs

1,365

189

-

(5)

1,549

Non-deduct. temp. differences

24,078(2,165)

(100)

(468)

21,345

-

8,073

-

-

8,073

Other

877

(590)

-

(42)

245

Adjustments

5,719(1,671)

-

(50)

3,998

56,207

2,275

(100)

(1,063)57,31931.12.2022

Allocated(released) toIncome Statement

Allocated(released)
to Equity

Exchangedifferences

31.12.2023

Tax losses

Total

Deferred tax liabilities

Prior losses

16

16

Exchange differences

2,175

Differences Depreciation/Amortisation

14,775

(599)

(440)

14,335315

IAS Reserves

315

Non-deduct. temp. differences

977

193

Other

1,092

(28)

Adjustments

9,331(1,444)17

28,680(1,878)

(18)

Total

1,541

(34)

(11)

1,159
1,064
7,904

(451)

26,334

Datalogic Group   117

Consolidated Annual Financial Report at December 31, 2023

Note 13. Provisions for post-employment and retirement benefits
The breakdown of changes in “Provisions for post-employment and retirement benefits” at December 31, 2023
and at December 31, 2022 is shown below:
2023

2022

At January 1

6,163

7,088

Amount allocated in the period

2,239

2,860

Utilisations(1,958)(2,361)

Discounting

-

(773)

Receivable from INPS

(675)

(666)

Exchange rate adjustments

(10)

15

5,759

6,163

At December 31

Note 14. Provisions for risks and charges“Provisions for risks and charges” at December 31, 2023, amounted to €7,918 thousand (€8,661 thousand at
December 31, 2022), represented by the best estimate of the contingent liabilities to which the Group is exposedin relation to contractual obligations for product guarantees and long-term incentive and retention plans for
personnel (middle management and key people), as well as contingent liabilities of a tax, labour law and supplementary agents’ indemnity nature, as shown below.
31.12.2022

Increases(Utilisations)(Releases)

Exchangedifferences

31.12.2023

Product warranty provision

7,169

-

(1,323)

(1)

5,845

Provision for staff incentive and retention plans

531

1,027

(29)

(19)

1,510

Other provisions

961

5

(403)

-

563

8,661

1,032

(1,755)

(20)

7,918

Total

The “Product warranty provision” covers the estimated cost of repairing products sold up to December 31, 2023
and covered by a warranty period; said provision amounted to €5,845 thousand (of which €3,290 thousand longterm).
“Provision for staff incentive and retention plans” refers to the estimated bonuses to be paid to staff based onlong-term incentive and retention plans accrued at December 31, 2023.
“Other provisions” at December 31, 2023 amounted to €563 thousand and consisted mainly of provisions for
supplementary agent’s indemnity and for contingent liabilities of a fiscal and labour law nature. Mention should
be made that a tax audit is underway regarding the subsidiary Datalogic S.r.l. concerning the application of thetransfer pricing methodology for 2019, which is currently still in a hearing stage with the assessing body.

118   Datalogic GroupThe breakdown of provisions for risks, divided into current and non-current portions, is shown below:
31.12.2023

31.12.2022

ChangeProvisions for risks and charges, current portion

2,721

3,468

(747)

Provisions for risks and charges, non-current portion

5,197

5,193

4

Total

7,918

8,661

(743)

Note 15. Trade and other payables, accrued expense and deferred income
31.12.2023

31.12.2022

ChangeTrade payables

78,859108,363(29,504)

Contractual liabilities - customer advances

4,543

3,566

977

Trade payables

83,402111,929(28,527)

Payables to associates

92

101

(9)

Payables to related parties

21

24

(3)

Total trade payables

83,515

112,054(28,539)

Other current payables

28,31033,603(5,293)Current accrued expense and deferred income

21,204

21,056148

Non-current accrued expense and deferred income

19,993

20,760(767)

Total Other payables - accrued expense and deferred income

69,50775,419(5,912)

Less: non-current portion

19,993

20,760(767)

133,029

166,713(33,684)

Current portion

Trade payables“Trade payables” amounted to €83,515 thousand, down by €28,539 thousand versus the end of the prior year.

Datalogic Group   119Consolidated Annual Financial Report at December 31, 2023

Other current payables
31.12.2023

31.12.2022

ChangePayables to employees

18,41821,078(2,660)

Payables to welfare and social security entities

6,834

7,130

(296)

Other payables

2,070

2,850

(780)

VAT payables

988

2,545

(1,557)28,31033,603(5,293)Total“Other current payables” amounting to €28,310 thousand at December 31, 2023 consists mainly of “Payables to
employees” for the fixed and variable components of salaries and holiday entitlements, as well as the related“Payables to welfare and social security entities”.
Accrued expense and deferred income“Accrued expense and deferred income”, amounting to €41,197 thousand at December 31, 2023 (€41,816 thousand at December 31, 2022), is composed mainly of deferred revenue related to the Ease of Care long-term
maintenance contracts.

120   Datalogic GroupINFORMATION ON THE INCOME STATEMENT
Note 16. Revenue
Revenue classified by type is shown in the following table:
31.12.2023

31.12.2022

ChangeRevenue from sale of products

489,293

607,524(118,231)

Revenue from services

47,324

47,108216

536,617654,632(118,015)

Total revenue

At December 31, 2023, consolidated net revenue amounted to €536,617 thousand, down by 18.0% versus€654,632 thousand in 2022. The Group’s revenue, classified by recognition method and business segment, isbroken down as follows:
Revenue broken down by recognition method

Datalogic

Informatics

Adjustments

31.12.2023

Revenue from sale of goods and services - point in time

454,057

8,217

(567)

461,707

Revenue from sale of goods and services - over time

66,1508,760-

74,910Total

520,207

16,977(567)

536,617

Revenue broken down by recognition method

Datalogic

Informatics

Adjustments

31.12.2022

Revenue from sale of goods and services - point in time

575,396

10,743(1,839)584,300

Revenue from sale of goods and services - over time

62,877

7,455-

70,332

638,273

18,198(1,839)654,632

Total

Datalogic Group   121

Consolidated Annual Financial Report at December 31, 2023

The Group recognises revenue for the sale of goods and services at a specific point in time when control of theassets has been transferred to the customer, usually at the same time as the delivery of the good or provision of
the service.
Instead, revenue recognition takes place over time, based on the status of performance of contractual obligations, when the performance does not create an asset that has an alternative use for the Group and the Group has
the collectible right to payment for the completed performance up to the date considered.
Revenue broken down by type

Datalogic

Informatics

Adjustments

31.12.2023

Sale of goods

481,426

8,434

(567)

489,293

Sale of services

38,781

8,543

Total

520,207

16,977(567)

536,617

Revenue broken down by type

Datalogic

Informatics

Adjustments

31.12.2022

Sale of goods

598,711

10,393(1,580)607,524

Sale of services

39,562

7,805

(259)

47,108638,273

18,198(1,839)654,632

Total

47,324Note 17. Cost of goods sold and operating costs
The following table shows the trends of cost of goods sold and operating costs at December 31, 2023, versus thesame period of the prior year, before special items.
31.12.2023

31.12.2022
Restated

ChangeCost of goods sold312,370

392,536(80,166)

Operating costs

219,262

225,773(6,511)

Research and development expense

67,43562,303

5,132

Distribution expense

95,791102,092(6,301)

Administrative and General expense

53,59958,764(5,165)

Other operating expense

2,437

2,614

(177)

531,632

618,309(86,677)

Total

Cost of goods soldCost of goods sold at December 31, 2023 was €312,370 thousand. The change is -20.4%; the percentage of sales
shows a 1.8% improvement to 58.2% from 60.0% last year.

122   Datalogic GroupOperating costs“Operating Costs”, totalling €219,262 thousand, saw the percentage of sales deteriorate by 6.4 percentage
points, increasing from 34.5% to 40.9%. This change was due primarily to the increase in distribution expense
and research and development costs.
“Research and development expense” at December 31, 2023 amounted to €67,435 thousand, up by 8.2% versus the prior year, representing 12.6% of sales (9.5% in the prior year). The detail items showing the largest increase are related to external consulting in connection with ongoing product development projects, and to higher
amortisation and depreciation.
“Distribution expense” amounted to €95,791 thousand, down versus 2022 (-6.2%). The percentage of sales
increased from 15.6% to 17.9%; the change is related mainly to increased sales initiatives, marketing and participation in trade fairs and events, and customer visits.
“Administrative and general expense” amounted to €53,599 thousand, down by 8.8% versus 2022, while thepercentage of sales increased slightly from 9.0% to 10.0%.
“Other operating expense”, amounting to €2,437 thousand, decreased by €177 thousand versus the prior year
and is primarily represented by non-income tax and duties and other operating costs.

Datalogic Group   123

Consolidated Annual Financial Report at December 31, 2023

Costs by nature
The following table provides the details of total costs (cost of goods sold and total operating costs) by nature:
31.12.2023

31.12.2022

ChangePurchases

224,812286,689(61,877)

Personnel expense

178,059

184,192(6,133)

Amortisation, depreciation and write-downs

37,30836,429879

Goods receipt and shipment expense

19,00033,523(14,523)

Travel and meetings expense

9,756

8,455

1,301

EDP expense

8,141

7,388

753

Consumables and R&D material

7,846

7,113

733

R&D technical consultancies

6,132

4,715

1,418

Marketing expense

5,749

5,840

(91)

Legal, tax and other consulting

4,596

5,743

(1,146)

Utilities

3,253

4,188

(935)

Building expense

2,734

2,335

399

Royalties

2,382

3,078

(696)

Telephone expense

1,920

2,031

(111)

Fees

1,845

1,899

(54)

Expense for plant and machinery and other assets

1,794

1,805

(11)

Sundry service costs

1,683

1,732

(48)

Quality certification expense

1,620

916

704

Directors' fees

1,512

2,307

(794)

Vehicle expense

1,455

1,336

118

Insurance

1,261

1,233

27

Installations

1,083

2,272

(1,189)Recruitment fees

1,027

1,878

(852)

Non-warranty repairs

1,007

1,482

(475)

Entertainment expense

909

903

6

Audit fees

885

976

(91)

Repairs and warranty provision accrual

867

2,357

(1,490)Subcontracted work

640

834

(194)

Other

2,356

4,661

(2,305)

531,632

618,309(86,677)

Total cost of goods sold and operating costs

124   Datalogic GroupPurchasing costs decreased by €61,877 thousand (-21.6%) versus 2022, improving the percentage of sales by
1.9%.
Personnel expense of €178,059 thousand (€184,192 thousand in 2022) fell by €6,133 thousand (-3.3%), with thepercentage of sales, however, worsening from 28.1% to 33.2%.
The detailed breakdown of personnel expense is as follows:
31.12.2023

31.12.2022

ChangeWages and salaries

135,713

142,678(6,965)Social security charges

28,13728,520(383)

Post-employment benefits

2,338

2,630

(292)

Retirement benefits and the like

1,989

1,958

31

Other personnel costs

9,882

8,406

1,476

178,059

184,192(6,133)

Total”Travel and meetings expense” and “Marketing expense”, amounting to €9,756 thousand and €5,749 thousand,respectively, were up by a total of €1,210 thousand versus the prior year, as a result of increased business initiatives and participation in trade fairs and events as well as customer visits.
The item “Amortisation, depreciation and write-downs”, amounting to €37,308 thousand, increased by €879
thousand, due to continued increased expenditure incurred in recent years.
“Goods receipt and shipment expense”, amounting to €19,000 thousand, fell sharply by €14,523 thousand versus the prior year; the percentage of sales was in fact 3.5% versus 5.1% in the comparison period.
“R&D technical consulting”, amounting to €6,132 thousand, increased sharply (+30.1%), accounting for 1.1% ofrevenue versus 0.7% in 2022, due to ongoing research projects.

Datalogic Group   125

Consolidated Annual Financial Report at December 31, 2023

Note 18. Other revenue“Other revenue” at December 31, 2023 amounted to €4,623 thousand, steady versus €4,612 thousand in 2022.
Other revenue is broken down as follows:
31.12.2023

31.12.2022

ChangeGrants to Research and Development expense

2,358

2,685

(327)

Miscellaneous income and revenue

1,303

1,543

(240)

Rents

129

112

17

Gains from disposal of fixed assets

196

92

104

Contingent assets

137

149

(12)

Other

500

31

469

Total

4,623

4,612

11

31.12.2023

31.12.2022

ChangeFinancial income/(expense)(1,515)(1,841)326

Foreign exchange differences

516(3,802)

4,318

4

(193)

197

(1,829)(1,471)(358)

Dividends

327

255

72

Other

4,308

373

3,935

Total Net Financials

1,811(6,679)8,490

Note 19. Net Financials

Fair Value investments
Bank expense

Net Financials ended with a positive €1,811 thousand, improving by €8,490 thousand versus a negative €6,679
thousand in the prior year, thanks to the favourable trend in exchange rate differences and to the gains earned
from the transfer of the minority interest in Solution Net Systems LLC (SNS).

126   Datalogic GroupNote 20. Tax
The Group’s tax burden at December 31, 2023 is €1,933 thousand as shown below.
31.12.2023

31.12.2022

ChangePre-tax profit/(loss)

11,41934,256(22,837)

Tax income (expense) – for current tax(4,887)(12,417)7,530

Tax income (expense) – for deferred and prepaid tax

2,954

8,287

(5,333)

Total Tax

(1,933)(4,130)2,197

Tax rate-16.9%-12.1%-4.9%

The tax rate at December 31, 2023 reflects the distribution of profit for the year among the Group’s various geographical areas of operation.
The following table shows the reconciliation between the nominal rate in force for the consolidating company,
and the effective rate:

Profit before tax

2023

2022

11,41834,256

Nominal tax rate

(2,740)-24.0%(8,221)-24.0%

Effects of local tax

(651)

-5.7%

(720)

-2.1%

Effects of intercompany dividend taxation

51

0.4%

360

1.1%

Cumulative effect of different tax rates applied in foreign countries

630

5.5%

606

1.8%

Tax effects – prior years

(965)

-8.5%

(335)

-1.0%

Other effects

1,744

15.3%

4,179

12.2%

(1,933)-16.9%(4,130)-12.1%

Consolidated effective tax rate

The table shows the reconciliation between the theoretical rate and the effective rate for tax year 2023. The­theoretical tax calculated using the IRES tax rate for 2023 amounted to €2,740 thousand versus €8,221 thousandin the prior year; the change of €5,481 thousand is attributable to the decrease in the Group’s profitability between
the two years. “Tax effects – prior years” refers to tax due on notices received and agreed with the tax authorities.
Further significant changes are reported with regard to the benefits under “other effects”, amounting to €1,744
thousand (decrease of €2,435 thousand), attributable mainly to movements related to temporary tax differences.

Datalogic Group   127

Consolidated Annual Financial Report at December 31, 2023

Note 21. Earnings/loss per share
Earnings/loss per share
As required by IAS 33, information on data used to calculate the earning/loss per share is provided below. BasicEPS is calculated by dividing the result for the year, profit and/or loss, attributable to shareholders of the Parent
Company by the weighted average number of shares outstanding during the reporting year. For the purpose of
calculating diluted EPS, the weighted average number of shares outstanding is adjusted by assuming the conversion of all potential shares with dilutive effects (such as the share-based incentive plan), while the Group’s net
result is adjusted for the after-tax effects of conversion.
31.12.2023

31.12.2022

Profit/(Loss) for the year attributable to the shareholders of the parent

9,859

29,550

Average number of shares (thousands)

55,78956,610

Basic earnings/(loss) per share

0.18

0.52

Profit/(Loss) for the year attributable to the shareholders of the parent

9,859

29,550

Average number of shares (thousands) – Diluted effect

55,78956,995

Diluted earnings/(loss) per share

0.18

0.52

Note 22. Audit fees
In accordance with the provisions of Article 149-duodecies of the Issuer Regulation, implementing Legislative
Decree no. 58 of February 24, 1998, the following is a table with the fees for 2023 paid to the Independent Auditors.
2023

2022

Datalogic S.p.A. - auditing

211

157

Italian subsidiaries - auditing

273

225

Foreign subsidiaries - auditing

248

308

Total auditing*

732

690

Non-auditing services**

49

51

Total

781

741

Fees for services provided by the Independent Auditors to the Parent Company and to the subsidiaries* Fees relating to foreign subsidiaries include €8 thousand for auditing services provided by independent auditors outside the network of
the Independent Auditors of the Parent Company (Deloitte & Touche S.p.A.).
** Non-auditing services refer to the limited audit of the consolidated non-financial statement for the year ending December 31, 2023, andthe certification of expense incurred for R&D activities of Italian subsidiaries.

128   Datalogic GroupNote 23. Fees paid to Directors
Reference for this information is made to the remuneration report that will be published pursuant to Article 123-terof the T.U.F. and made available on the Company website.

TRANSACTIONS WITH SUBSIDIARIES THAT ARE NOT CONSOLIDATED LINE BY LINE, ASSOCIATES
AND RELATED PARTIESFor the definition of “Related Parties”, reference is made not only to IAS 24, approved by EC Regulation
no. 1725/2003, but also to the Procedure for Related-Party Transactions approved by the Board of Directors on
November 4, 2010 (last amended on June 23, 2021) available on the Company website www.datalogic.com. The
parent company of the Datalogic Group is Hydra S.p.A.
Intercompany transactions are carried out as part of the ordinary operations and at normal market conditions.
Additionally, there are related-party transactions carried out again in the ordinary course of business and at
normal market conditions, of an immaterial amount pursuant to and for the purposes of the “RPT Procedure”,
attributable mainly to Hydra S.p.A. or to entities subject (with Datalogic S.p.A.) to common control or to persons
exercising administrative and management functions at Datalogic S.p.A. (including entities controlled by themand close family members).
Related-party transactions refer mainly to commercial and property transactions (instrumental and non-instrumental premises for the Group leased or rented out), consulting services, and participation in tax consolidation.
None of them are of particular economic or strategic importance to the Group, since receivables, payables, revenue, and expense from related parties do not have a material percentage impact on the total amounts of thefinancial statements.
Pursuant to Article 5, paragraph 8, of the Consob Regulations, it should be noted that, over the period 01.01.2023 –31.12.2023, the Company’s Board of Directors did not approve any transaction of greater significance, as set out by Article
3, paragraph 1, letter b) of the Consob Regulations, or any related-party transactions of a lesser significance that had asignificant impact on the Group’s equity position or results.
Company controlled by
Chairman of B.o.D.

Companies notconsolidated on aline-by-line basis

31.12.2023

Investments

-

640

640

Trade receivables – accrued income and prepaid expense

8

1,346

1,354

Trade payables – accrued expense and deferred income

21

120

141

1,232

220

1,451

Trade revenue

-

7,176

7,176

Other revenue

8

507

515

Commercial and service costs

Datalogic Group   129Consolidated Annual Financial Report at December 31, 2023

HEADCOUNT
31.12.2023

31.12.2022

ChangeDatalogic

2,842

3,001

(159)

Informatics

68

68

0

2,910

3,069

(159)

Total

The Chairman of the Board of Directors(Romano Volta)

130   Datalogic GroupAnnual Statutory
Financial Reportat December 31, 2023

Parent Company
Financial Statements

Annual Statutory Financial Report at December 31, 2023

Statement of Financial Position
ASSETS (Euro/000)

Notes

31.12.2023

31.12.2022

221,520

227,956

19,046

19,872

Land

2,466

2,466

Buildings

14,598

14,632Other assets

1,982

2,774

6,598

7,760

Software

6,457

7,282

Fixed assets under construction and advances

141

478

1,304

1,302

Buildings

1,143

1,073

Vehicles161229A) Non-current assets (1+2+3+4+5+6+7)
1) Tangible fixed assets

2) Intangible fixed assets

3) Right of use fixed assets

1

2

3

4) Investments in subsidiaries and associates

4

189,256

189,335

5) Non-current financial assets

6

3,773

7,948

209

194

1,334

1,545

B) Current assets (8+9+10+11)

315,740

337,218

8) Trade and other receivables

19,967

20,063

17,131

15,417

17,101

15,389

-

9

2,836

4,646

134

1,334

2,209

770

655

-

253,126

276,530

Loans to subsidiaries

253,126

276,530

11) Cash and cash equivalents

40,43739,855

Total Assets (A+B)

537,260

565,174

6) Trade and other receivables
7) Deferred tax assets

Trade receivables
		

of which subsidiaries

		

of which related parties

Other receivables, accrued income and prepaid expense
		

7

7

of which subsidiaries

9) Tax receivables
		

12

8

of which subsidiaries

10) Current financial receivables

134   Datalogic S.p.A.

9

Statement of Financial Position
LIABILITIES (Euro/000)

Notes

31.12.2023

31.12.2022

A) Equity (1+2+3+4+5+6)

10

340,492

361,137

1) Share capital

30,39230,3922) Share premium reserve

111,779

111,779

3) Treasury shares held in portfolio(41,962)(22,191)

(259)

2,848

5) Retained earnings (losses carried forward)

223,455

207,8926) Profit (loss) for the year

17,08730,418B) Non-current liabilities (7+8+9+10)

82,54570,9974) Other reserves

7) Non-current financial payables

11

79,31968,0468) Deferred tax liabilities

12

2,280

2,171

9) Provisions for post-employment and retirement benefits

13

788

716

10) Provisions for non-current risks and charges

14

158

64

C) Current liabilities (11+12+13+14)

114,222

133,040

11) Trade and other payables

16,37023,328

5,855

5,605

2,449

890

2

2

10,515

17,723

6,069

12,808

-

70

8,455

4,466

-

192

6,837

3,185

Trade payables
		

of which subsidiaries

		

of which related parties

Other payables, accrued expense and deferred income		of which subsidiaries

		

of which related parties

12) Tax payables
		

of which Parent Company

		of which subsidiaries

15

15

8

13) Provisions for current risks and charges

14

-

250

14) Current financial payables

11

89,397104,997

74,726

71,061

537,260

565,174		

of which subsidiaries

Total Liabilities (A+B+C)

Datalogic S.p.A.   135

Annual Statutory Financial Report at December 31, 2023

Income Statement(Euro/000)

Notes

31.12.2023

31.12.2022

1) Revenue from services

17

32,49235,943

2) Cost of goods sold

18

1,703

1,817

30,78934,126901

915

Gross Operating Margin (1-2)
3) Other revenue19

		

of which subsidiaries

640

631

		

of which related parties

-

136

830

829

-

122

2,145

2,379

60

164

26,45829,835

4) Research and development expense		

of which subsidiaries

5) Distribution expense
		

18

18

of which subsidiaries

6) Administrative and general expense18

		of which Parent Company

-

90

		

of which related parties

58

55

		

of which subsidiaries

(105)

89

472

331

-

1

(868)

(1,273)

Total operating costs (4+5+6+7)

29,90533,374

EBIT

1,785

1,667

30,387

36,63026,09232,225

11,392

5,792

7,254

1,188

Net Financials (8-9)

18,99530,838

Profit/(Loss) before tax from continuing operations

20,78032,505

3,693

2,087

17,08730,4187) Other operating expense		

of which related parties

		of which subsidiaries

8) Financial income		20

of which subsidiaries

9) Financial expense
		

18

20

of which subsidiaries

Income tax
Net Profit/(Loss) for the year

136   Datalogic S.p.A.

21

Statement of Comprehensive Income(Euro/000)Note31.12.2023

31.12.2022

17,08730,418

74

90

74

90

-

(3)

-

1

(675)

(230)

8

3

Total other items of the statement of comprehensive income that will not
be later reclassified to Profit/(Loss) for the year

(675)

(233)

Total profit/(loss) of the statement of comprehensive income

(601)

(143)

16,48630,275

Net Profit/(Loss) for the year
Other items of the statement of comprehensive income:
Other items of the statement of comprehensive income that will later bereclassified to Profit/(Loss) for the year:
Profit/(Loss) on cash flow hedges (CFH)

10

Total other items of the statement of comprehensive income that will
later be reclassified to Profit/(Loss) for the year
Other items of the statement of comprehensive income that will not belater reclassified to Profit/(Loss) for the year
Actuarial gains (losses) on defined-benefit plans		

of which tax effectProfit/(Loss) from financial assets at FVOCI		

10of which tax effectTotal comprehensive profit/(loss) for the year

10

Datalogic S.p.A.   137

Annual Statutory Financial Report at December 31, 2023

Statement of Cash Flows(Euro/000)

31.12.2023

31.12.2022

Profit before tax

20,78032,505

Amortisation of intangible fixed assets

2,255

2,419

Depreciation of tangible fixed assets

1,215

1,482

Depreciation of right of use fixed assets

303

243

Losses (Gains) from sale of fixed assets

(4)

(4)

Change in provisions for risks and charges

(200)

64

Change in provision for employee benefits

(24)

19

(18,995)(30,838)

Allocation to the share-based incentive plan

(241)

241

Monetary effect foreign exchange losses (gains)(201)(1,054)

Other non-monetary changes

270

184

Cash flow generated (absorbed) from operations before changes
in working capital

5,158

5,261

Change in trade receivables(1,711)(4,897)

Change in trade payables

251(1,303)

Change in other current assets

1,905

705

Change in other current liabilities(7,207)

5,908

Change in other non-current assets

(15)

(10)

(1,619)10,926

Change in tax

(789)

(640)

Interest paid

(8,707)(2,927)

Interest collected

19,6195,227

Dividends collected

7,121

27,328Cash flow generated (absorbed) from operations (A)15,62539,914

Increase in intangible fixed assets(1,319)(1,278)Decrease in intangible fixed assets-

4

Increase in tangible fixed assets

(431)

(733)

Decrease in tangible fixed assets

46

18

Change in financial fixed assets

3,425

5,487

-

(16,000)

Net financial expense (income)Cash flow generated (absorbed) from operations after changes
in working capital

Change in financial receivables and other financial assets

138   Datalogic S.p.A.

Note

(Euro/000)

31.12.2023

31.12.2022

Cash flow generated (absorbed) from investments (B)

1,721(12,502)

Payment of financial payables(33,042)(52,083)

New financial payables

25,00050,000

Payments of financial liabilities from leases

(289)

(237)

Changes in cash pooling

28,357(18,745)(Purchase) sale of treasury shares(19,771)-

Dividends paid

(17,034)(16,934)

14

(188)

(16,765)(38,186)582(16,035)

Net cash and cash equivalents at beginning of year

39,85553,782

Net cash and cash equivalents at year end

40,43739,855

Effect of change in cash and cash funds
Cash flow generated (absorbed) from financing activities (C)Net increase (decrease) in cash (A+B+C)

Note

Datalogic S.p.A.   139

Annual Statutory Financial Report at December 31, 2023

Changes in Equity

01.01.2023

Share capital

Share premium reserve

Treasury shares heldin portfolio

30,392

111,779(22,191)

Allocation of profit
Dividends
Sale/purchase of treasury shares(19,771)

Other changes
Share-based incentive plan
Profit/(loss) at 31.12.2023
Other items of the statement of comprehensive income
Total comprehensive Profit (Loss)
31.12.2023

01.01.2022

30,392

111,779(41,962)

Share capital

Share premium reserve

Treasury shares heldin portfolio

30,392

111,779(26,096)

Allocation of profit
Dividends
Sale/purchase of treasury shares
Other changes
Share-based incentive plan

3,905

Result at 31.12.2022
Other items of the statement of comprehensive income
Total comprehensive Profit (Loss)
31.12.2022

140   Datalogic S.p.A.

30,392

111,779(22,191)

Share capitaland reserves

Other reserves

Retained earnings

Profit for the year

Equity119,980

2,848

207,892

30,418361,137

30,418(30,418)(17,034)(17,034)(19,771)(19,771)(2,154)

2,180

26

(351)

(351)
17,087(601)

17,087
(601)

(601)

17,087

16,486100,209(259)

223,455

17,087340,492

Share capitaland reserves

Other reserves

Retained earnings

Profit for the year

Equity116,075

11,233

213,347

7,550

348,205

7,550(7,550)3,905(16,934)(16,934)(3,660)3,710

50(4,582)219(458)
30,418

(143)

(143)

(143)
119,980

2,848

30,418207,892

30,41830,27530,418361,137

Datalogic S.p.A.   141

Explanatory Notes to the
Financial Statements

Annual Statutory Financial Report at December 31, 2023

General information
Datalogic S.p.A. (the “Company” or the “Parent Company”) is a joint-stock company listed on Euronext STAR
Milan of Borsa Italiana S.p.A. and is headquartered in Italy. The registered office is in Via Candini 2, Lippo di­Calderara (BO). The Company is a subsidiary of Hydra S.p.A., also based in Bologna.
Datalogic S.p.A. is the Parent Company of the Datalogic Group (“Group”), a global technological leader in the­automatic data capture and process automation markets. The Company is specialised in the design and productionof barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID.
The publication of the Company’s Financial Statements at December 31, 2023 was authorized by resolution of theBoard of Directors dated March 14, 2024.

Basis of presentation
1) General criteria
In compliance with European Regulation no. 1606/2002, the Financial Statements were prepared in accordancewith the International Accounting Standards (IAS/IFRS) issued by the IASB - International Accounting Standard Board and endorsed by the European Union pursuant to European Regulation 1725/2003 and subsequent
updates, with all the interpretations of the International Financial Reporting Standard Interpretations Committee (“IFRS-IC”), formerly known as the Standing Interpretations Committee (“SIC”) endorsed by the European
Commission at the date of approval of the draft Financial Statements by the Board of Directors and contained in
the relevant E.U. Regulations published on that date and in compliance with the provisions set forth in Consob­Regulation 11971 of 14/05/99 and subsequent updates.
These Financial Statements were drawn up in Euro thousands, which is the Company’s “functional” and “presentation” currency.

2) Reporting formats
The reporting formats adopted comply with those required by IAS 1 and were used in the Financial Statements
for the year ended December 31, 2022, in particular: current and non-current assets, as well as current and non-current liabilities are shown separately in theStatement of Financial Position. Current assets, which include cash and cash equivalents, are those set tobe realized, sold or used during the Company’s normal operational cycle; current liabilities are those whose
extinction is envisaged during the normal operating cycle or in the twelve months after the reporting date; with regard to the Income Statement, cost and revenue items are disclosed based on grouping by function,
as this classification was deemed more explanatory for comprehension of the Company’s business result; the Statement of Comprehensive Income presents the items that determine profit/(loss) for the period andthe costs and revenue recognised directly under equity;
 the Statement of Cash Flows is presented using the “indirect method”.

144   Datalogic S.p.A.

The Financial Statements were prepared in accordance with the general criterion of reliable and truthful presentation of the Company’s financial position, results of operations and cash flows, in compliance with the generalprinciples of going concern, accrual basis, consistency of presentation, materiality and aggregation, prohibitionof offsetting and comparability of information.
The Statement of Changes in Equity analytically details the changes occurring in the year and in the prior year.
In preparing the Financial Statements, the historic cost principle was adopted for all assets and liabilities, except
for certain financial assets for which the fair value principle was applied.
The preparation of IFRS-compliant financial statements requires the use of certain estimates. Reference is madeto the section describing the main estimates made in these Financial Statements.

3) Accounting policies and standards applied
The policies adopted for the preparation of the Company’s financial statements at December 31, 2023 are shown
below.
Tangible fixed assets
Owned tangible fixed assets are recognised at the cost of contribution, purchase, or internal construction. The
cost includes all directly attributable costs required to make the asset available for use (including, when relevant
and where there are present obligations, the present value of estimated costs for decommissioning, asset removal, and site remediation), net of trade discounts and rebates.
Certain tangible fixed assets in the “Land and buildings” categories were measured at fair value (market value)at January 1, 2004 (date of first-time adoption of IFRS) and this value was used as the deemed cost. The cost ofbuildings is depreciated net of the residual value estimated as the realization value obtainable through sale at theend of the useful life of the building.
Costs incurred after purchase are accounted for in the book value of the asset, or are recognised as a separate
asset, only if it is believed likely that the future economic benefits associated with the asset will flow to the entity
and the asset’s cost can be reliably measured. Maintenance and repair costs or replacement costs that do nothave the above characteristics are recognised in the income statement in the year in which they are incurred.
Fixed assets are systematically depreciated in each year from the time the fixed asset is available for use, or is potentially able to provide the associated economic benefits, based on economic-technical rates determined with regard to the remaining possibility of use of the assets and taking account of the month of availability for the first year.
Land is considered to be an asset with indefinite life and therefore not subject to depreciation.

Datalogic S.p.A.   145

Annual Statutory Financial Report at December 31, 2023

The depreciation rates applied by the Company are as follows:
Asset category

Rates

Property:
Buildings

2% - 3.3%

Other assets:
Plants pertaining to buildings

8.33% - 10% - 6.67%

Lightweight constructions

6.67% - 4% - 33.3%

Production equipment & electronic instruments
Moulds20% - 10%
20%

Electronic office machinery

33% - 20% - 10%

Office furniture and fittings

10% - 6.67% - 5%

Cars

25%

Freight vehicles

14%

Trade show & exhibition equipment
Leasehold improvements

11% - 20%
Contract duration

If a fixed asset suffers an impairment loss, then, regardless of the depreciation already recognised, the value ofthe fixed asset is accordingly written down; if the reasons for the impairment loss no longer apply in subsequent
years, the original value is restored. The residual value and useful life of assets are reviewed at least at each­year-end in order to assess any significant changes in value.
Fixed assets held under leases
Assets held by the Company under lease contracts, including operating leases, in accordance with IFRS 16, inforce since January 1, 2019, are recorded under assets with a financial payable as a balancing entry. ­Specifically,
assets are recognised at a value equal to the present value of future payments at the date of signing of the contract, discounted using the applicable incremental borrowing rate for each contract, and depreciated over theduration of the underlying contract, taking account of the effects of any extension or early termination clauses
whose exercise was deemed reasonably certain.
In compliance with the provisions of IFRS 16, starting from January 1, 2019, the Company identifies contracts forwhich it obtains the right to use an identifiable asset for a period of time in exchange for a consideration as leases.
For each lease contact, starting from the commencement date, the Company recognises an asset (right of useof the asset) under tangible fixed assets as a balancing entry to a corresponding financial liability (lease payable),with the exception of the following cases: (i) short-term lease contracts; (ii) low-value lease contracts applied tosituations where the leased asset has a value not exceeding €5 thousand (new value).

146   Datalogic S.p.A.

For short-term and low-value lease contracts, the financial liabilities related to the leases and corresponding
right of use are not recognised, but the lease payments are recognised in the income statement on a straight-line
basis for the duration of the respective contracts.
In the case of a complex contract that includes a lease component, the latter is always managed separately fromthe other services included in the contract.
Rights of use are shown in a specific item of the financial statements. At the time of initial recognition of the lease
contract, the right of use is recognised at a value corresponding to the lease payable, determined as describedabove, increased by the instalments paid in advance and the ancillary expense and net of any incentives received.
Where applicable, the initial value of the rights of use also includes the related costs of dismantling and restoring
the area.
The situations involving the recalculation of the lease payable imply a corresponding change in the value of theright of use.
After initial recognition, the right of use is depreciated on a straight-line basis, starting from the commencement
date, and subject to write-downs in the event of impairment. Depreciation is carried out over the shorter of thelease term and the useful life of the underlying asset; however, in cases where the lease contract envisages thetransfer of ownership, possibly also as a result of the use of redemption options included in the value of the rightof use, depreciation is carried out over the useful life of the asset.
Lease payables are shown in the financial statements under current and non-current financial liabilities, together
with the Company’s other financial payables. At the time of initial recognition, the lease payable is recorded on
the basis of the present value of the lease instalments to be settled determined using the implicit interest rate of
the contract (i.e. the interest rate that forms the present value of the sum of the payments and the residual value
equal to the sum of the fair value of the underlying asset and the initial direct costs incurred by the Company); if
this rate is not indicated in the contract or easily determinable, the present value is determined using the “incremental borrowing rate”, i.e. the incremental interest rate that, in a similar economic context and in order to obtain
an amount equal to the value of the right of use, the Company would have paid for a loan with similar durationand collateral.
The lease payments subject to discounting include fixed payments; variable fees due to an index or a rate; theredemption price, if any and if the Company is reasonably certain to use it; the amount of payment envisaged forany issue of collateral on the residual value of the asset; the amount of penalties to be paid in the event of the exercise of options for early termination of the contract, where the Company is reasonably certain to exercise them.
After initial recognition, the lease payable is increased to take account of the interest accrued, determined on thebasis of the amortised cost, and decreased against the lease payments paid.
Additionally, the lease payable is subject to restatement, upward or downward, in the event of changes to thecontracts or other situations envisaged by IFRS 16 that involve a change in the amount of the instalments and/or the duration of the lease. Specifically, in the presence of situations that involve a change in the estimate of theprobability of exercise (or non-exercise) of the options for renewal or early termination of the contract or in theredemption (or not) provisions of the asset upon expiry of the contract, the lease payable is restated by discounting the new value of the instalments to be paid on the basis of a new discount rate.

Datalogic S.p.A.   147

Annual Statutory Financial Report at December 31, 2023

Intangible fixed assets
Intangible assets are recognised under assets in the statement of financial position when it is likely that use of
the asset will generate future economic benefits and when the asset’s costs can be reliably determined. They
are initially recognised at the value of contribution or at acquisition or production cost, inclusive of any ancillary
expense.
If tangible and intangible fixed assets are sold, the date of disposal will be the date when the purchaser obtains
the control of the assets, pursuant to requirements set forth on performance obligations by IFRS 15. The profit
or loss generated by the consideration is accounted for in the Income Statement and is determined according
to requirements to determine the transaction price envisaged by IFRS 15. Subsequent changes to the estimatedamount of consideration used to determine profit or loss must be accounted for in accordance with the requirements for changes in transaction pricing in IFRS 15.
Intangible fixed assets with finite useful life are amortised systematically in accordance with their expected futureuse, so that the net value at the end of the year corresponds to their remaining use or the amount recoverable
according to the company’s plans for carrying out production activities. Amortisation starts when the asset isavailable for use.
The useful life for each category is detailed below:
Description

Years

Other intangible assets:- Software licences

3/5- SAP licences10- User licences

Contract duration

The residual values, the useful lives and the amortisation of intangible fixed assets are reviewed at each year end
and, where appropriate, adjusted prospectively. The useful lives shown remained unchanged versus the prioryear.
Investments
Investments in subsidiaries and associates, not classified as “held for sale”, are measured at cost, adjusted for
impairment. Where there are indications that investments may be impaired, they are subject to impairment
testing and written down if necessary. Impairment is charged to the income statement when there is objective­evidence that events have occurred that impact the estimated future cash flows of the investments. Any losses,
exceeding the carrying amount of investments, that may arise due to legal obligations or implicit obligations tocover losses of investees, are recognised under Provisions for risks and charges.
The original value is restored in subsequent years if the reasons for the write-downs no longer apply. The related
dividends are recorded under financial income from investments at the time the right to receive them is determined, generally coinciding with the resolution taken by the Shareholders’ Meeting.

148   Datalogic S.p.A.

Subsidiaries
Subsidiaries are all those companies over which the Company exercises control by having the power to determine, directly or indirectly, financial and operational policies and obtain benefits from their activities.
Associates
Associates are all those companies over which the Company exercises significant influence but does not havecontrol over management or the power to determine financial and operational policies and obtain benefits fromthe activities of those companies.
Impairment
If there are specific indicators of impairment, tangible fixed assets, intangible fixed assets and investments are
subject to an impairment test.
The aim of the impairment test is to ensure that tangible and intangible fixed assets, as well as investments, arenot carried at a value exceeding their recoverable value, consisting of the higher of their fair value, less costs tosell and their value in use.
Value in use is determined based on the future cash flows expected to originate from the asset or cash-generating
unit (hereafter also CGU) to which the asset belongs. Expected cash flows are discounted using a discount rate thatreflects the current market estimate referring to the time-related cost of money and the risks specific to the asset
or cash generating unit to which the assumed realizable value refers.
If the recoverable value of the asset or CGU, to which it belongs, is less than the net book value, the asset in question is written down to reflect its impairment, with recognition of the latter in the Income Statement for the year.
As no goodwill is recognised in the financial statements, impairment losses relating to CGUs are allocated on a
proportional basis.
An impairment loss, in the event that the assumptions that generated it no longer apply, is reinstated, up to theamount corresponding to the book value that would have been determined, net of depreciation calculated on thehistorical cost, if no impairment loss had ever been recognised. Any reinstatements are recognised in the Income
Statement.
Financial assets and liabilities
The Company measures certain financial assets and liabilities at fair value. Fair value is the price that would bereceived for the sale of an asset or that would be paid for transfer of a liability in a normal transaction between
market participants at the date of measurement.
A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
 in the principal market of the asset or liability; or in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal market or most advantageous market must be accessible for the Company. The fair value of an asset
or liability is measured by using the assumptions that market participants would use when pricing the asset or
liability, assuming that they act in their economic best interest. A fair value measurement of a non-financial ­asset
takes account of a market participant’s ability to generate economic benefits by using the asset in its ­highest andbest use or by selling it to another market participant that would use the asset in its highest and best use.

Datalogic S.p.A.   149

Annual Statutory Financial Report at December 31, 2023

The Company uses measurement methods that are appropriate to the circumstances, and for which data available to measure fair value are sufficient, maximising the use of relevant observable inputs and minimising the useof non-observable inputs. All assets and liabilities measured or recognised at fair value are classified based on afair value hierarchy and described hereunder:
 Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity canaccess at the measurement date; Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly;
 Level 3 - measurement techniques for which input data are unobservable for the asset or liability.
The fair value measurement is classified in its entirety in the same level of the fair value hierarchy as the lowest
level input used for the measurement.
For assets and liabilities recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels of the hierarchy by reviewing the categorisation at each annual
reporting date.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or
equity instrument for another entity.
Financial assets
Financial assets are initially recognised at their fair value plus, in the case of a financial asset not at fair value
through profit or loss, any ancillary expense. Exceptions are trade receivables that do not contain a significant financing component for which the Company applies the practical expedient by measuring them at the transaction
price determined in accordance with IFRS 15.
Upon recognition, for subsequent measurement purposes, financial assets are classified according to the four
possible measurement methods described below:
 Financial assets at amortised cost; Financial assets at fair value through OCI with reclassification of cumulative gains and losses;
 Financial assets at fair value through OCI without reversal of cumulative gains and losses on derecognition(equity instruments);
 Financial assets at fair value through profit or loss.
The selection of the classification of financial assets depends on the following: nature of financial assets, determined primarily by the characteristics of expected contractual cash flows; business model that the Company applies to the management of the financial assets in order to generate cash
flows, which may result from the collection of contractual cash flows, as well as from the sale of financial
assets or from both.

150   Datalogic S.p.A.

In order to classify and measure a financial asset at amortised cost or at fair value through OCI, this asset must
generate cash flows that depend solely on payments of principal and interest (SPPI). This measurement is ­referred
to as a SPPI test and is performed at the level of each instrument.
Financial assets are derecognised when the right to receive cash ceases to exist, the Company has transferred toa third party the right to receive cash flows from the asset or has a contractual obligation to pay them in full andwithout delay, and (1) has transferred substantially all risks and rewards of ownership of the financial asset or(2) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
In the cases where the Company has transferred the rights to receive cash flows from an asset or has signed anagreement based on which it retains the contractual rights to receive the cash flows of the financial asset, but­undertakes a contractual obligation to pay the cash flows to one or more beneficiaries (pass-through), it assesses
whether and to what extent it has retained the risks and benefits pertaining to ownership.
Valuations are regularly carried out in order to verify whether there is objective evidence that a financial asset ora group of assets may have suffered impairment. If there is objective evidence, the impairment is recognised asa cost in the income statement for the year.
As regards trade receivables, the Company applies a simplified approach in calculating the expected losses.
Therefore, the Company does not monitor changes in credit risk, but the expected loss is fully recognised at eachreporting date. The Company has established a matrix system based on historical information, reviewed to consider prospective elements with regard to the specific types of debtors and their economic environment, as a toolfor determining expected losses.
Financial liabilities
Financial liabilities are measured using the amortised cost method, recognising expense through the effective
interest rate method in the income statement, except for financial liabilities acquired for trading purposes orderivatives (see next paragraph), or those designated at FVTPL by Management on the date of initial recognition,
which are measured at fair value with a balancing entry in the income statement.
Financial guarantees given are agreements envisaging a payment to repay the owner of a debt security against aloss incurred due to a non-payment by the debtor at the contractual maturity term. When issued by the Company,
financial guarantee contracts are initially recognised as liabilities at fair value, increased by transaction costs
directly attributable to issuance of the guarantee. The liability is then measured at the higher of the best estimateof the outlay required to meet the guaranteed obligation at the balance sheet date and the amount initially recognised, net of accumulated amortisation.
A financial liability is removed from the balance sheet when the obligation underlying the liability has beendischarged, cancelled or satisfied. Where an existing financial liability is exchanged for another from the samelender on substantially different terms, or the terms of an existing liability are substantially changed, suchan exchange or change is treated as a derecognition of the original liability and a recognition of a new liability, with any differences between the carrying amounts recognised in the Income Statement. In the event of
amendments on financial liabilities defined as irrelevant, the income effects of renegotiation are recognised in
the Income Statement.

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Annual Statutory Financial Report at December 31, 2023

Offsetting of financial instruments
A financial asset and liability can be offset and the net balance can be shown in the Statement of Financial Position if there is a current legal right to offset the amounts recognised and there is the intention to settle the net
remainder, or realize the asset and at the same time settle the liability.
Financial derivatives
Derivatives, including embedded derivatives, separate from the main contract, are initially recognised at fairvalue.
Derivatives are classified as hedging instruments when the relationship between the derivative and the hedged
item is formally documented and the effectiveness of the hedge, assessed periodically, is high.
When hedging derivatives hedge the risk of changes in fair value of the hedged instruments, they are recognised
at fair value, and the effects are charged to the Income Statement; accordingly, the hedged instruments are adjusted to reflect the changes in fair value, associated with the hedged risk.
When derivatives hedge the risk of changes in the cash flows of the hedged instruments (cash flow hedges), thehedges made are designated against exposure to variability in cash flows attributable to risks that may affect the
Income Statement at a later date; these risks are generally associated with an asset or liability recognised in the
Financial Statements (such as future payments on debt at floating rates).
The effective portion of the change in the fair value of the portion of derivative contracts that have been designated as hedges, in accordance with the requirements of the standard, is recognised as an item of the Statement ofComprehensive Income (Hedging Reserve); this reserve is then charged to the result in the period in which thehedged transaction affects the Income Statement.
The ineffective portion of fair value change, as well as the entire fair value change in derivatives that have notbeen designated as hedge derivatives or that do not have the requirements envisaged in the aforesaid IFRS 9, isinstead recognised directly through the Income Statement.
Non-current assets held for sale and discontinued operations
The Company classifies non-current assets held for sale as held for sale if their book value will be recovered
primarily through a sale transaction, rather than through their continued use. These non-current assets held forsale classified as held for sale are measured at the lower of their book value and their fair value less costs to sell.
Costs to sell are any additional costs directly attributable to the sale, excluding financial expense and tax.
The condition for classifying an asset as held for sale is considered met only when the sale is highly probableand the asset or disposal group is available for immediate sale in its current condition. The actions required toconclude the sale should indicate that it is unlikely that significant changes in the sale will occur or that the salewill be cancelled. Management must be engaged in the sale, whose completion should be planned within one
year from the date of classification.
The depreciation of property, plant and equipment and amortisation of intangible assets ceases when they areclassified as available for sale.
Assets and liabilities classified as held for sale are shown separately under current items in the Financial Statements.

152   Datalogic S.p.A.

Income items related to assets held for sale and discontinued operations, when related to significant businesslines or geographical areas of operation, are excluded from the result of continuing operations and are shown in
the income statement in a single line as net profit/(loss) from assets held for sale or discontinued operations netof the related tax effect.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, bank and postal deposits, and short-term financial investments (maturity of three months or less after purchase date) that are highly liquid, readily convertible into cash
and are subject to insignificant risk of changes in value.
EquityShare capital consists of the outstanding ordinary shares recorded at par value.
Costs related to the issuance of new shares or options are classified in Equity (net of the associated tax benefit)
as a deduction from the proceeds arising from the issuance of these instruments.
Treasury shares
In the case of buyback of treasury shares, the price paid, inclusive of any directly attributable ancillary expense,
is deducted from the Company’s Equity until such shares are cancelled, re-issued, or sold. When these treasury
shares are resold or re-issued, the proceeds, net of any directly attributable ancillary expense and related tax
effect, are accounted for as Equity of the Company.
Therefore, no profit or loss is recognised in the Income Statement upon the purchase, sale or cancellation oftreasury shares.
Liabilities from employee benefits
Post-employment benefits are defined on the basis of plans, which according to their characteristics are divided
into “defined-contribution” and “defined-benefit” plans.
Employee benefits substantially include the provisions for severance indemnities of the Company.
Defined-contribution plans
Defined-contribution plans are formalised post-employment benefit plans under which a company makes payments to an insurance company or pension fund and will have no legal or implied obligation to pay further contributions if the fund does not have sufficient assets at vesting to pay all employee benefits related to employment
in the current and prior years. These contributions, paid in exchange for employee service, are recorded as an
expense in the period incurred.
Defined-benefit plans and other long-term benefits
Defined benefit plans are formalised post-employment benefit plans that constitute a future obligation for theCompany. The entity is underwriting the actuarial and investment risks associated with the plan.
The Company uses the projected unit credit method to determine the present value of liabilities of the plan andthe cost of services.

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Annual Statutory Financial Report at December 31, 2023

This actuarial calculation method requires the use of objective actuarial hypotheses, compatible and based on
demographic variables (mortality rate, personnel turnover) and financial variables (discount rate, future increases of salaries and wages and benefits). When a defined-benefit plan is entirely or partly financed by contributions
paid to a fund, legally separate from the company, or to an insurance company, the plan assets are measured atfair value. The amount of the obligation is thus accounted for, net of the fair value of the plan assets that will be
used to settle that obligation directly.
Revaluations, which include actuarial gains and losses, changes in the effect of the asset ceiling (excluding net
interest), and the return on plan assets (excluding net interest), are recognised immediately in the Statement of
Financial Position by debiting or crediting retained earnings through the other items of the Statement of Comprehensive Income in the year in which they arise. Revaluations are not reclassified in the Income Statementin subsequent years. Other long-term benefits are employee benefits other than post-employment benefits. Accounting is similar to defined-benefit plans.
Provisions for risks and charges
Provisions for risks and charges are set aside to cover liabilities of uncertain amount or due date that must berecognised in the financial statements when the following concurrent conditions are met: the entity has a present obligation (legal or constructive), i.e. under way at the reporting date, as a result ofa past event; it is likely that economic resources will be required to fulfill the obligation;
 the amount needed to fulfil the obligation can be reliably estimated; risks for which the onset of a liability is merely potential are shown in the notes to the financial statements,
in the commentary part of the provisions, without making a provision.
In the case of events that are only remote, i.e., events that have minor chances of occurring, no provision is accounted for, nor is additional or supplementary information provided.
Allocations are booked at the amount representing the best estimate of the amount that the company would pay
to pay the obligation or to transfer it to third parties at the reporting date. If the effect of discounting the value ofmoney is significant, allocations are determined by discounting expected future cash flows at a pre-tax discountrate that reflects the current market valuation of the time value of money. When discounting is carried out, theincrease in the provision due to the passage of time is recognised as a financial expense.
Provisions are recorded at the present value of the expected financial resources to be used against the obligation.
Provisions are periodically updated to reflect changes in cost estimates, timing of implementation, and discounted value, if any; revisions in provision estimates are charged to the same line item in the Income Statement that
previously included the allocation and to the Income Statement for the year in which the change occurred.
The Company recognises restructuring provisions if there is an implied obligation to restructure and there isa formal plan for restructuring, which has raised a valid expectation in those affected that it will carry out the
restructuring either by starting to implement that plan or because it has announced its main features to thoseaffected by it.

154   Datalogic S.p.A.

Share-based incentive plan - Equity-settled payment transactions
A number of Company employees receive part of the remuneration as share-based payments; therefore these
employees provide services in exchange for shares (“equity settled transactions”).
The cost of equity-settled transactions is determined by the fair value on the date the assignment is made using
an appropriate valuation method.
This cost is recognised in the case of the Company’s employees under personnel costs for the period in which
the conditions related to the achievement of targets and/or the performance of services are fulfilled, with a corresponding increase in equity as a balancing entry, while, in the case of employees of other Group companies,
directly and indirectly controlled, as an increase in the carrying amount of investments. Cumulative costs andincreases in investments recognised in respect of such transactions at the reporting date of each year to the vesting date are commensurate with the maturity of the vesting period and the best estimate of the number of equity
instruments that will actually vest.
Service or performance conditions are not taken into account when defining the fair value of the plan at the grant
date. However, the probability of these conditions being met is taken into account when defining the best estimate of the number of equity instruments that will vest. Arm’s length conditions are reflected in the fair value atthe grant date. Any other conditions attached to the plan that do not involve a service obligation are not considered to be a vesting condition. Non-vesting conditions are reflected in the fair value of the plan and result in theimmediate recognition of the cost of the plan, unless there are also service or performance conditions.
No cost or increase in investments is recognised for rights that do not ultimately vest because the performance
and/or service conditions have not been met. When rights include a market condition or a non-vesting condition, they are treated as if they had vested regardless of whether the market conditions or other non-vesting
conditions they are subject to are met or not, with the understanding that all other performance and/or service
conditions must be met.
If the conditions of the plan are changed, the minimum cost to be recognised is the fair value at the grant date in
the absence of the plan change, assuming that the original conditions of the plan are met. Additionally, a cost isrecognised for any change that results in an increase in the total fair value of the payment plan, or is otherwise
favourable to employees; this cost is measured by reference to the date of change. When a plan is cancelled by theentity or the counterpart, any remaining fair value element in the plan is immediately transferred to the income
statement.
Income tax
Income tax includes current and deferred tax. Income tax is generally charged to the Income Statement, except
when it relates to cases recognised directly in Equity, in which case the tax effect is recognised directly in Equity.
Current income tax is calculated by applying to taxable income the tax rate in force at the reporting date and includes the adjustments to tax related to prior periods.
Deferred tax is calculated using the liability method applied to temporary differences between the amount ofassets and liabilities in the financial statements and the corresponding amounts recognised for tax purposes.

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Annual Statutory Financial Report at December 31, 2023

Deferred tax assets are recognised against all deductible temporary differences and unused tax receivables
and losses carried forward, to the extent that it is probable that there will be adequate future taxable profitsthat may make the use of deductible temporary differences and tax receivables and losses carried forward
applicable.
Deferred tax is calculated at the tax rate expected to be in force at the time the asset is sold or the liability issettled.
Datalogic S.p.A. acts as the consolidating company for both the direct subsidiary Datalogic S.r.l. and the indirect
subsidiary Datasensing S.r.l. This consolidation involves determining the total comprehensive income attributable to all three companies by summing their respective incomes and tax losses. Additionally, the subsidiary­Datalogic IP Tech S.r.l. operates under the “Tax transparency” system (pursuant to Article 115 et seq. of the TUIR)
for the three-year period 2021-2023 with the investees Datalogic S.p.A. and Datalogic S.r.l by reason of the latter’s 50% equal ownership of the capital of the investee IP tech S.r.l.
Revenue recognition
Revenue is measured at fair value of the amount collected or collectable from the provision of services within thescope of the Company’s ordinary business activity. Revenue is shown net of VAT, discounts and rebates.
Pursuant to IFRS 15, the Company recognises revenue after identifying the contracts with its customers, as wellas performance obligations to be fulfilled, determining the consideration it expects to be entitled to in exchange
for the services, and after evaluating the manners to satisfy such performance obligations (satisfaction at point
in time or over the time).
Pursuant to the provisions set out by IFRS 15, the Company recognises revenue only when the following obligations have been met: the parties to the contract have approved the contract and are committed to perform their respective obligations;
 each party’s rights regarding the goods or services to be transferred can be identified; payment terms of transferable goods and services can be identified; the contract is of a commercial type; consideration in exchange for the transferred services is likely to be received.
If the aforesaid requirements are met, the Company recognises revenue by applying the following rules.
Provision of services
The Company provides services to its subsidiaries. The Company recognises revenue from services when it has
fulfilled its performance obligation, transferring the promised service (i.e., asset) to the customer. An asset istransferred when the customer obtains control of that asset.
Government grants
Government grants are recognised - regardless of the existence of a formal grant resolution - when there isreasonable certainty that the entity will comply with the conditions attached to the grant and therefore that the
grant will be received.

156   Datalogic S.p.A.

Government grants obtainable as reimbursement for expense and costs already incurred, or for the purpose ofproviding immediate financial aid to the recipient company with no future related costs, are recognised as incomein the year in which they become receivable.
Income from dividends and interest
Income from dividends and interest is respectively recognised as follows: dividends, when the right to receive payment is determined (with receivable offset at the time of the distribution resolution);
 interest, applying the effective interest rate method.
Dividends distributed
Dividends are recognised when the right for shareholders to receive payment arises, which normally corresponds
to the date of the Annual Shareholders’ Meeting that resolves on the distribution of dividends.
The dividends distributable to Company shareholders are recognised as an equity movement in the year when
they are approved by the Shareholders’ Meeting.
Treatment of foreign currency transactions
Functional presentation currency
The Company’s financial statement items are shown in the currency of the economic environment in which theentity operates, so-called functional currency. The Financial Statements are presented in Euro thousands, theEuro being the Company’s functional and presentation currency.
Transactions in currencies other than the functional currency
Transactions in currencies other than the functional currency are initially translated into the functional currency
by using the exchange rate at the transaction date. At the end of the reporting period, monetary assets and liabilities denominated in non-functional currencies are translated into the functional currency at the exchange rate ineffect on the closing date. Exchange differences realised upon collection of receivables and payment of payables
in foreign currencies and those arising from the translation of monetary assets and liabilities into non-functional currencies at the closing date are recorded in the Income Statement under financial income and expense.
Non-monetary assets and liabilities denominated in non-functional currencies that are measured at cost aretranslated at the exchange rate on the date of the transaction, while those measured at fair value are translated
at the exchange rate on the date such value is determined.

4) IFRS accounting standards, amendments and interpretations applied as from January 1, 2023
The following accounting standards, amendments and IFRS interpretations have been applied by the Company
for the first time as from 1 January 2023:
 On May 18, 2017, the IASB published IFRS 17 – Insurance Contracts, intended to supersede IFRS 4 - Insurance
Contracts. The standard was applied as of January 1, 2023. The aim of the new standard is to ensure that anentity provides relevant information that faithfully represents the rights and obligations deriving from insurance contracts issued. 
The adoption of this standard and its amendment had no effect on the Company’s financial statements.

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Annual Statutory Financial Report at December 31, 2023

 On May 7, 2021, the IASB published “Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets
and Liabilities arising from a Single Transaction”. The document clarifies how entities should account fordeferred tax on certain transactions that can generate assets and liabilities of equal amounts at the date offirst recognition, such as leases and decommissioning provisions. The amendments were applied as of January 1, 2023. 
The adoption of this amendment had no effect on the Company’s financial statements.
 On February 12, 2021, the IASB published “Disclosure of Accounting Policies-Amendments to IAS 1 andIFRS Practice Statement 2” and “Definition of Accounting Estimates-Amendments to IAS 8”. The amendments regarding IAS 1 require an entity to disclose relevant information about the accounting standards
applied by the Company. The changes are intended to improve disclosures about the accounting standards
applied by the Company so that they provide more useful information to investors and other primary users offinancial statements, as well as to help entities distinguish changes in accounting estimates from changes inaccounting policies. The amendments were applied as of January 1, 2023. The adoption of these amendments
had no effect on the Company’s financial statements.
 On May 23, 2023, the IASB published “Amendments to IAS 12 Income taxes: International Tax Reform – Pillar
Two Model Rules”. The document provides temporary relief from the recognition and disclosure requirements for deferred tax assets and liabilities related to the Pillar Two Model Rules (rule effective in Italy as ofDecember 31, 2023, but applicable as of January 1, 2024) and envisages specific disclosure requirements forentities affected by the related International Tax Reform.
The document envisages the immediate application of temporary relief, while the disclosure requirements
apply only to annual financial statements that began on or after January 1, 2023, but not to interim financial
statements with a closing date prior to December 31, 2023.

5) IFRS accounting standards, amendments and interpretations endorsed by the European
Union at December 31, 2023, but not yet applicable on a compulsory basis and not adopted inadvance by the Company at December 31, 2023
The following IFRS accounting standards, amendments and interpretations have been endorsed by the European
Union, but are not yet mandatorily applicable and have not been adopted in advance by the Company at December
31, 2023:
 On January 23, 2020, the IASB published “Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current” and on October 31, 2022 published “Amendments to
IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants”. These changes aim toclarify how to classify payables and other short-term or long-term liabilities. Additionally, the ­amendments
also improve the information that an entity must provide when its right to defer settlement of a liability for atleast twelve months is subject to meeting certain parameters (i.e., covenants). The amendments come into
force on January 1, 2024, but early application is permitted. The Directors do not expect any material effecton the Company’s financial statements from the adoption of this amendment.

158   Datalogic S.p.A.

 On September 22, 2022, the IASB published “Amendments to IFRS 16 Leases: Lease Liability in a Saleand Leaseback”. The document requires the seller-lessee to measure the lease liability arising from a sale& leaseback transaction in a way that it does not recognise the gain or loss that relates to the right of use it
retains. The amendments will apply as of January 1, 2024, but early application is permitted. The Directors do
not expect any material effect on the Company’s financial statements from the adoption of this amendment.

6) IFRS accounting standards, amendments and interpretations not yet endorsed by the European Union at December 31, 2023
At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below.
 On May 25, 2023, the IASB published “Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements”. The document requires an entity to provide
additional information on reverse factoring arrangements that will enable financial statement users to assess
how financial arrangements with suppliers may affect the entity’s liabilities and cash flows and to understandthe effect of such arrangements on the entity’s exposure to liquidity risk. The amendments will apply as ofJanuary 1, 2024, but early application is permitted. The Directors do not expect any material effect on the
Company’s financial statements from the adoption of this amendment.
 On August 15, 2023, the IASB published “Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability”. The document requires an entity to apply a methodology to be appliedconsistently in order to ascertain whether one currency can be converted into another and, when this is not
feasible, how to determine the exchange rate to be used and the disclosure to be made in the notes to thefinancial statements. The amendment will apply as of January 1, 2025, but early application is permitted. The
Directors do not expect any material effect on the Company’s financial statements from the adoption of thisamendment.

7) Use of estimates and assumptions
The preparation of the IFRS-compliant Financial Statements requires the Directors to apply accounting standards and methods that, in certain cases, are based on valuations and estimates based on historical experienceand assumptions that are evaluated from time to time according to the specific cases. The application of theseestimates and assumptions affects the amounts of revenue, expense, assets and liabilities and their disclosure,
as well as the disclosure of contingent liabilities. The results of financial statement items for which the above
estimates and assumptions were used may differ from those shown owing to the uncertainty surrounding theassumptions and conditions on which the estimates are based.
Following are the assumptions regarding the future and other main causes of uncertainty in estimates that, at
the reporting date, show a risk of resulting in adjustments to the carrying amounts of assets and liabilities within
the next year. The Company has based its assumptions and estimates on parameters available when preparing
the Financial Statements. The current circumstances and assumptions on future developments may howeverchange upon occurrence of market changes or events beyond the Company’s control. Upon their occurrence,these changes are reflected in the assumptions.

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Annual Statutory Financial Report at December 31, 2023

Tax
Deferred tax assets are recognised to the extent that it is probable that there will be a taxed profit in the futuresuch that they can be used. Significant estimates by Management are required to determine the amount of tax
assets that can be recognised based on the level of future taxable profits, the timing of their occurrence, and tax
planning strategies. Deferred tax liabilities for tax on retained earnings of subsidiaries, affiliates or joint ventures
are not recognised to the extent that it is probable that their distribution will not occur in the foreseeable future.
Therefore, estimates by Management are required to determine the amount of tax assets that may be recognised
and tax liabilities that may not be recognised based on the level of future taxable profits, the timing of their occurrence, and tax planning strategies. The long-term nature, as well as the complexity of regulations in various
jurisdictions, differences arising between actual results and the assumptions made, or future changes in thoseassumptions, may require future adjustments to income tax and costs and benefits already recorded.
Fair value of financial instruments
When the fair value of a financial asset or liability recognised in the statement of financial position cannot bemeasured by relying on quotations in an active market, fair value is determined using various valuation techniques. Inputs included in this model are taken from observable markets where possible, otherwise, some degree of estimation is required to define fair values.
Share-based incentive plan - Equity-settled payment transactions
Certain employees of the Company receive a portion of their compensation as share-based payments. The costof equity-settled transactions is determined by the fair value of instruments at the date of the assignment. The
cumulative costs recorded for such transactions at the end of each year up to the vesting date are commensuratewith the expiry of the vesting period and the best estimate of the number of equity instruments that will actually
vest. Evaluation processes and manners, as well as the determination of the abovementioned estimates, arebased on assumptions that, for their nature, involve reliance on the judgement of the Directors.

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Management of financial risks
Risk factors
The Company is exposed to various types of financial risks in carrying out its business, including: market risk, specifically:͖ foreign exchange risk, relating to operations in currency areas other than the currency of denomination;
͖ interest rate risk, connected with the Company’s level of exposure to financial instruments, generatinginterest and recognised in the Statement of Financial Position;
 credit risk, deriving from trade transactions or from financing activities;
 liquidity risk, referring to the availability of financial resources and access to the credit market.
The Company specifically monitors each of the abovementioned financial risks, taking prompt action in order tominimize such risks. The sensitivity analysis then shows the potential impact on final results from hypotheticalfluctuations in the relevant parameters. Under IFRS 7, the analyses are based on simplified scenarios applied to
the figures and, by their very nature, cannot be considered indicators of the actual effects of future changes.

Market risk
Foreign exchange risk
The Company operates internationally and is exposed to transactional foreign exchange risk. Transactional risk
relates to the trade (receivables/payables in foreign currencies) and financial (loans drawn or granted in foreign
currencies) transactions of the Company in currencies other than the functional and presentation currency. The
foreign currency to which the Company is most exposed is the US dollar.
To enable full understanding of the impact of foreign exchange risk on the Company’s financial statements, asensitivity analysis of foreign exchange balances to changes in the exchange rate was conducted. The variability
parameters applied were identified among the foreign exchange rate differences considered reasonably possible,
with all other variables remaining equal. The following table shows the results of the analysis at December 31,
2023:
USD

Nominal value

Exchange rates

Portion exposed to
exchange rate risk

5%

-5%

1.10501.16031.0498Financial assets
Cash and cash funds

40,437

15,726(749)

828

Trade and other receivables

20,176

1,440

(69)

76

Financial assets and loans

253,126(6,985)

333

(368)

Loans

168,716

50,851

2,421(2,676)

Trade and other payables

16,370

1,547

74

(81)

2,010

(2,222)Financial liabilities

Net impact on Income Statement

At December 31, 2023, the Company has no financial instruments to hedge changes in foreign exchange rates.

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Annual Statutory Financial Report at December 31, 2023

Interest rate risk
The Company is exposed to interest rate risk associated with the financial assets and liabilities in place. The aimof interest rate risk management is to limit and stabilize the negative effects on cash flows subject to changes ininterest rates. At December 31, 2023, the Company has no financial instruments to hedge interest rate changes.
To enable full understanding of the potential effects of rate fluctuations the Company is subject to, a sensitivity
analysis was carried out on the items most subject to risk, assuming a change in the interest rate for Euro and
USD underlyings of 75 basis points. The analysis was carried out on reasonable assumptions, and the results areshown below with regard to the date of December 31, 2023:
EUR

Nominal value

Portion exposed tointerest rate risk

+75bp

-75bp

Cash and cash funds

40,437

24,711

185(185)

Financial assets and loans

253,126

260,111

1,951(1,951)

168,716

25,211

(189)

189

1,947

(1,947)

Financial assets

Financial liabilities
Loans
Net impact on Income Statement

USD

Nominal value

Portion exposed tointerest rate risk

+75bp

-75bp

Cash and cash funds

40,437

15,726

118(118)

Financial assets and loans

253,126(6,985)(52)

52

168,716

50,851

(381)

381

(316)

316

Financial assets

Financial liabilities
Loans
Net impact on Income Statement

Credit risk
Since the Company has no trade or financial relations with customers outside the Datalogic Group, but only withGroup Companies, it is not significantly exposed to this risk.
Liquidity risk
The Company’s liquidity risk is minimized by the timely management by the Treasury department. Bank debt
and liquidity are managed through financial resource optimization tools, including cash pooling. The Company
manages and negotiates medium/long-term loans and credit lines to meet the Group’s requirements. Centralized
negotiation of credit lines and loans, together with the management of the Group’s cash resources are aimed at
optimizing financing costs.

162   Datalogic S.p.A.

The following table shows financial liabilities by maturity:
Financial liabilities by maturity
Loans
Financial payables from leases

0 - 1 year

1 - 5 years

14,392

78,263279

956

over 5 years

Total
92,655100

1,335

Financial payables to Group companies

74,72674,726

Trade and other payables

16,37016,370Total

105,767

79,219100

185,086

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Annual Statutory Financial Report at December 31, 2023

INFORMATION ON THE STATEMENT OF FINANCIAL POSITIONASSETS
Note 1. Tangible fixed assets
Tangible fixed assets at December 31, 2023 amounted to €19,046 thousand; net expenditure of €389 thousand
and depreciation of €1,215 thousand were recognised during the year. The breakdown of the item at December
31, 2023 and at December 31, 2022 is shown below.
31.12.2023

31.12.2022

Change

Land

2,466

2,466

-

Buildings

14,598

14,632(34)

Other assets

1,982

2,774

(792)

19,046

19,872

(826)

Total

“Other assets” at December 31, 2023 includes: office furniture and equipment (€1,485 thousand), generic plant
related to buildings (€456 thousand), lightweight constructions (€36 thousand) and motor vehicles (€5 thousand).
Expenditure made during the year relates mainly to office equipment and refers both to their normal replacement
and to upgrades and improvements to the Company’s infrastructure.
Details of changes at December 31, 2023 and at December 31, 2022 are as follows:Land

Buildings

Other assets

Total

2,466

18,177

16,94537,588-(3,545)(14,171)(17,716)

2,466

14,632

2,774

19,872

Capital expenditure

-

201

230

431

Total

-

201

230

431

Disposals, historical cost

-

-

(753)

(753)

Disposals, accumulated depreciation

-

-

711

711

Depreciation

-

(235)

(980)

(1,215)

Total

-

(235)

(1,022)(1,257)2,466

18,37816,42237,266-(3,780)(14,440)(18,220)

2,466

14,598

1,982

19,046

Historical cost
Accumulated depreciation
Net book value at 01.01.2023
Increases 31.12.2023

Decreases 31.12.2023

Historical cost
Accumulated depreciation
Net book value at 31.12.2023

164   Datalogic S.p.A.

Land

Buildings

Other assets

Total

2,466

18,177

16,32036,963-(3,311)(13,017)(16,328)2,466

14,866

3,303

20,635

Capital expenditure

-

-

733

733

Total

-

-

733

733

Disposals, historical cost

-

-

(108)

(108)

Disposals, accumulated depreciation

-

-

94

94

Depreciation

-

(234)

(1,248)(1,482)

Total

-

(234)

(1,262)(1,496)

2,466

18,177

16,94537,588-(3,545)(14,171)(17,716)

2,466

14,632

2,774

19,872

Historical cost
Accumulated depreciation
Net book value at 01.01.2022
Increases 31.12.2022

Decreases 31.12.2022

Historical cost
Accumulated depreciation
Net book value at 31.12.2022

Note 2. Intangible fixed assets
Intangible fixed assets at December 31, 2023 amounted to €6,598 thousand; net expenditure for €1,093 thousand
and amortisation for €2,255 thousand were recognised during the year. The breakdown of the item at December
31, 2023 and at December 31, 2022 is shown below.
31.12.2023

31.12.2022

ChangeSoftware

6,457

7,282

(825)

Fixed assets under construction and advances

141

478

(337)

6,598

7,760

(1,162)

Total“Fixed assets under construction and advances”, amounting to €141 thousand, is attributable to the implementation and customization of proprietary software licenses to be completed.

Datalogic S.p.A.   165

Annual Statutory Financial Report at December 31, 2023

Details of changes at December 31, 2023 and at December 31, 2022 are as follows:
Software

Other

Fixed assets underconstruction andadvances

Total

Historical cost

22,953

1,066

478

24,497

Accumulated amortisation(15,671)(1,066)-(16,737)

7,282

-

478

7,760

Capital expenditure

1,204

-

115

1,319

Total

1,204

-

115

1,319

(226)

(3,066)

Net book value at 01.01.2023
Increases 31.12.2023

Decreases 31.12.2023
Disposals, historical cost

(2,840)

Disposals, accum. amortisation

2,840

-

-

2,840

Amortisation(2,255)--(2,255)

Total(2,255)-(226)(2,481)

Incoming transfers at historical cost

226

-

(226)

-

Total

226

-

(226)

-

Historical cost

21,543

1,066

141

22,750

Accumulated amortisation(15,086)(1,066)-(16,152)

Net book value at 31.12.2023

6,457

-

141

6,598

Other changes 31.12.2023

166   Datalogic S.p.A.

Software

Other

Fixed assets underconstruction andadvances

Total

Historical cost

22,056

1,066

107

23,229

Accumulated amortisation(13,258)(1,066)-(14,324)

8,798

-

107

8,905

Capital expenditure

800

-

478

1,278

Total

800

-

478

1,278

-

(10)

Net book value at 01.01.2022
Increases 31.12.2022

Decreases 31.12.2022
Disposals, historical cost
Disposals, accum. amortisation

(10)
6

-

-

6

Amortisation(2,419)--(2,419)Total(2,423)--(2,423)

Incoming transfers at historical cost

107

-

(107)

-

Total

107

-

(107)

-

Historical cost

22,953

1,066

478

24,497

Accumulated amortisation(15,671)(1,066)-(16,737)

Net book value at 31.12.2022

7,282

-

478

7,760

Other changes 31.12.2022

Note 3. Right of use fixed assets
Net changes for €304 thousand and depreciation for €303 thousand were recognised during the year.
The breakdown of the item at December 31, 2023 and at December 31, 2022 is shown below.
31.12.2023

31.12.2022

ChangeBuildings

1,143

1,073

70

Vehicles

161

229

(68)

Total

1,304

1,302

2

The increase in “Buildings” is attributable mainly to the renewal of the property leases.

Datalogic S.p.A.   167

Annual Statutory Financial Report at December 31, 2023

Details of changes at December 31, 2023 and at December 31, 2022 are as follows:
Buildings

VehiclesTotal

Historical cost

1,243

529

1,772

Accumulated depreciation

(169)

(300)

(469)

Net book value at 01.01.2023

1,073

229

1,302

Increases from changes in contracts

354

54

408

Total

354

54

408

(103)

(196)

(299)

19

176

195

Depreciation

(201)

(102)

(303)

Total

(285)

(123)

(407)

Historical cost

1,494

387

1,881

Accumulated depreciation

(351)

(226)

(577)

Net book value at 31.12.2023

1,143

161

1,304

Buildings

VehiclesTotal

Historical cost

724

477

1,201

Accumulated depreciation

(136)

(252)

(388)

Net book value at 01.01.2022

588

225

813

Increases from changes in contracts

607

152

759

Total

607

152

759

Decreases in historical cost from changes in contracts

(89)

(99)

(188)

Decreases in accumulated depreciation from changes in contracts

89

74

163

Depreciation

(122)

(121)

(243)

Total

(122)

(146)

(268)

Historical cost

1,243

529

1,772

Accumulated depreciation

(169)

(300)

(469)

Net book value at 31.12.2022

1,073

229

1,302

Increases 31.12.2023

Decreases 31.12.2023
Decreases in historical cost from changes in contracts
Decreases in accumulated depreciation from changes in contracts

Increases 31.12.2022

Decreases 31.12.2022

168   Datalogic S.p.A.

Note 4. Investments in subsidiaries and associates
Investments held by the Company at December 31, 2023 amounted to €189,256 thousand (€189,335 thousand at
December 31, 2022).
31.12.2022

Increases

Decreases

31.12.2023

Subsidiaries

188,635-(111)

188,524

Associates

700

32

-

732

189,335

32(111)

189,256

Total affiliates

The net decrease of €79 thousand refers to the release of the share-based incentive plan payments related to
the rights assigned by the Company to employees of subsidiaries (2022-2024 period) for €111 thousand, and theincrease of €32 thousand as a result of the payment following the increase in the share capital of CAEN RFID S.r.l.
Information on investments in subsidiaries and associates is shown in Annex 2. Negative differences between
pro-rata equity and the carrying amount of certain investments are not deemed to represent impairment losses
in relation to the future earnings expectations of the investees and the contribution they are expected to make tothe business of the Company and the Group.

Note 5. Financial assets and liabilities by category
The following table provides a breakdown of “Financial assets and liabilities” in accordance with IFRS 9.
Financial assets
Financial Assets at Financial assets at FV
Amortised Cost through profit and loss

Financial assets at FV
through OCI

31.12.2023

Non-current financial assets

2,264

1,619

99

3,982

Non-current financial assets and investments

2,055

1,619

99

3,773

Other receivables

209

Current financial assets

313,530209--

313,530

Trade receivables

17,131

17,131Other receivables

2,836

2,836

Loans to subsidiaries

253,126

253,126

Financial assets - Loans
Cash and cash equivalents
Total

40,437315,794

40,4371,619

99

317,512

Datalogic S.p.A.   169

Annual Statutory Financial Report at December 31, 2023

Financial Assets at Financial assets at FV
Amortised Cost through profit and loss

Financial assets at FV
through OCI

31.12.2022

Non-current financial assets

2,401

1,439

4,302

8,142

Non-current financial assets and investments

2,207

1,439

4,302

7,948

Other receivables

194

Current financial assets

336,448

194--

336,448

Trade receivables

15,417

15,417

Other receivables

4,646

4,646

Loans to subsidiaries

276,530

276,530

Cash and cash equivalents

39,85539,855

Total

338,849

1,439

4,302

344,590

Derivatives

Financial liabilities atamortised cost

31.12.2023

Non-current financial liabilities-

79,31979,319Non-current financial payables-

79,31979,319Current financial liabilities-

105,767

105,767

Trade payables

-

5,855

5,855

Other payables-

10,515

10,515Current financial payables-

89,39789,397

Total-

185,086

185,086

Derivatives

Financial liabilities atamortised cost

31.12.2022

Non-current financial liabilities-

68,046

68,046

Non-current financial payables-

68,046

68,046

Current financial liabilities-

128,324

128,324

Trade payables

-

5,605

5,605

Other payables-

17,723

17,723Current financial payables-

104,997

104,997

Total-

196,370

196,370

Financial liabilities

The fair value of financial assets and financial liabilities is determined according to methods classifiable inthe various levels of the fair value hierarchy as envisaged by IFRS 13. Specifically, the Company uses internalvaluation models generally used in financial practice, based on prices provided by market participants or
quotations recorded on active markets.

170   Datalogic S.p.A.

Fair value - hierarchy
All the financial instruments measured at fair value are classified in the three categories shown below:
Level 1: market prices;
Level 2: valuation techniques (based on observable market data);
Level 3: valuation techniques (not based on observable market data).
Assets measured at fair value

Level 1

Level 2

Level 331.12.2023

Non-current financial assets and investments

99

-

1,619

1,718

Total assets measured at fair value

99

-

1,619

1,718

31.12.2023

31.12.2022

ChangeNon-current financial assets

3,773

7,948

(4,175)

Total

3,773

7,948

(4,175)

2023

2022

ChangeAt January 1

7,948

11,683(3,735)Acquisitions/Disposals(3,458)(5,931)

2,473

Gains/(Losses) recognised in OCI

(683)

77

(760)

Gains/losses recognised in the Income Statement

(34)

(88)

54

Other movements

-

2,207

(2,207)At December 31

3,773

7,948

(4,175)Note 6. Financial assets and loans to third parties
Financial assets and loans to third parties include the following:

The change in “Non-current financial assets” is detailed below:

Non-current financial assets amounted to €3,773 thousand; the change in the year is attributable mainly to thedivestment of part of the capital held in the Japanese company Idec Corporation.

Datalogic S.p.A.   171

Annual Statutory Financial Report at December 31, 2023

Note 7. Trade and other receivables
The breakdown of the item at December 31, 2023 and at December 31, 2022 is shown below:
31.12.2023

31.12.2022

ChangeTrade receivables

17,131

15,4171,714   of which subsidiaries

17,101

15,389

1,711

-

9

(9)

2,836

4,646

(1,810)

134

1,334

(1,200)19,967

20,063(96)   of which related parties
Other receivables - accrued income and prepaid expense   of which subsidiaries
Total

Trade receivables
Trade receivables at December 31, 2023 amounted to €17,131 thousand and included mainly trade transactions
for intercompany services provided to subsidiaries at normal market conditions. At December 31, 2023, thebreakdown of the item by maturity, versus the prior year, was as follows:
31.12.2023

31.12.2022

Not overdue

11,919

9,665

Past due by 30 days

4,815

4,851

Past due by 31 - 90 days

133

41

Past due by more than 90 days

265

860

17,131

15,417Total

The following table shows the breakdown of trade receivables by currency at December 31, 2023 and at December 31,
2022:
31.12.2023

31.12.2022

Euro (EUR)

15,713

14,602US Dollar (USD)

1,412

808

British Pound Sterling (GBP)

5

4

Turkish Lira (TRY)2

3

17,131

15,417

Total

172   Datalogic S.p.A.

Other receivables - accrued income and prepaid expense
The details of “Other receivables - accrued income and prepaid expense” are shown below.
31.12.2023

31.12.2022

ChangeOther current receivables

363

1,612

(1,249)   of which subsidiaries

134

1,334

(1,200)

Other non-current receivables

209

194

15

VAT receivables

957

1,232

(275)

Accrued income and prepaid expense

1,516

1,801

(285)

Total

3,045

4,840

(1,795)“Accrued income and prepaid expense” is composed mainly of the recognition of insurance contracts and hardware
and software licenses.

Note 8. Tax receivables and payables
31.12.2023

31.12.2022

ChangeTax receivables

2,209

770

1,439

  of which subsidiaries

655

-

655

Tax payables(8,455)(4,466)(3,989)   of which subsidiaries(6,837)(1,093)(5,744)

Total(6,246)(3,696)(2,550)At December 31, 2023, the net balance of “Tax receivables and payables” was negative and amounted to €6,246
thousand, with a negative change of €2,550 thousand versus December 31, 2022, when the net balance showeda payable of €3,696 thousand.

Datalogic S.p.A.   173Annual Statutory Financial Report at December 31, 2023

Note 9. Loans to subsidiaries
31.12.2023

31.12.2022

ChangeLoans to subsidiaries

217,282

217,959(676)

Financial receivables from cash pooling

35,84458,572(22,728)

253,126

276,530(23,404)

Total

At December 31, 2023, “Loans to subsidiaries” amounted to €217,282 thousand (€217,959 thousand at December 31, 2022); the decrease in short-term financial receivables from subsidiaries is due to changes under the
cash pooling agreement. The abovementioned loans bear interest at normal market conditions. For details on the
breakdown of the item by counterparty, reference is made to the following section on related-party transactions.

174   Datalogic S.p.A.

LIABILITIES AND EQUITY
Note 10. Equity
Equity at December 31, 2023 is broken down as follows:
31.12.2023

31.12.2022

ChangeShare capital

30,39230,392-

Share premium reserve

111,779

111,779-

Treasury shares held in portfolio(41,962)(22,191)(19,771)

Share capital and reserves

100,209

119,980(19,771)

Other reserves

(259)

2,848

(3,107)Retained earnings

223,455

207,892

15,563

Profit for the year

17,08730,418(13,331)

Total

340,492

361,137(20,645)

Details of the changes in equity items that occurred during the year, and in the prior year, can be found in theappropriate statement in the financial statements.
Share capital
At December 31, 2023, the share capital of €30,392 thousand represents the fully subscribed and paid-up sharecapital. It is made up of a total number of 58,446,491 ordinary shares, of which 4,800,000 are held as treasury
shares for a value of €41,962 thousand, therefore the outstanding shares at that date are 53,646,491. The shares
have a par value of €0.52 each.
Other Reserves
The “Reserve for Treasury shares held in portfolio” at December 31, 2023 shows a decrease of €19,771 thousand
following the purchase of treasury shares.
At December 31, 2023, “Other reserves”, including the “Share-based incentive plan reserve”, shows a negative€259 thousand. The change is related mainly to the reclassification to retained earnings from the sale of financial
instruments.

Datalogic S.p.A.   175

Annual Statutory Financial Report at December 31, 2023

Note 11. Financial payables“Financial payables” at December 31, 2023 amounted to €168,716 thousand, down by €13,489 thousand as detailed below.
31.12.2023

31.12.2022

ChangeBank loans

92,655

100,661(8,006)

Financial payables to subsidiaries (cash pooling)

74,726

71,061

3,665

Financial payables from leases

1,335

1,321

14

168,716

173,043(4,327)0 - 1 year

1 - 5 years

over 5 years

31.12.2023

Bank loans

14,392

78,263-92,655

Financial payables from cash pooling

74,726--74,726

279

956

100

1,335

89,397

79,219100

168,716

Total

Financial payables are broken down by maturity date as follows:

Financial payables from leases
Total

Bank borrowings at December 31, 2023, totaling €92,655 thousand, were taken out at a fixed rate. The change
in the year is due to loan repayment and new borrowings or the drawdown of existing lines as detailed below.
31.12.2023

31.12.2022

At January 1

100,661

102,455

Increases

25,00050,000Decreases from borrowing repayments(33,042)(52,083)36

289

92,655

100,661

Other changes
At December 31

176   Datalogic S.p.A.

Covenants
Certain loan agreements require the Company to comply with financial covenants, measured on a half-year basis
at June 30 and December 31, summarized in the following table:
Loan

Company

Covenants

Frequency

Reference financial
statements

RCF

Datalogic S.p.A. PFN/EBITDA

4.5x; 4.0x (*)

Half-year

Consolidated

Roller Coaster

Datalogic S.p.A. PFN/EBITDA

3.00x

Half-year

Consolidated(*) 4.5x at June and 4.0x at December.

At December 31, 2023, all covenants were met.

Note 12. Net deferred tax
Deferred tax assets and deferred tax liabilities arise both from positive items already recorded in the income
statement, the taxation of which is deferred in application of current tax regulations, and from differences of atemporary nature between the value of assets and liabilities recorded in the financial statements for the year andthe relevant value for tax purposes.
Deferred tax assets are accounted for in accordance with the assumptions of future recoverability of the temporary differences they originated from, i.e., on the basis of strategic economic and tax plans.
The net balance of prepaid tax assets and deferred tax liabilities came to a negative €946 thousand at December
31, 2023 (a negative €626 thousand at December 31, 2022).
31.12.2023

31.12.2022

ChangeDeferred tax assets

1,334

1,545

(211)

Deferred tax liabilities(2,280)(2,171)(109)

Net deferred tax

(946)

(626)

(320)

Datalogic S.p.A.   177

Annual Statutory Financial Report at December 31, 2023

The main items of deferred tax assets and deferred tax liabilities and their changes during the year are shown
below:
Prepaid tax

31.12.2022

Allocated (released)
to Income Statement

Foreign exchange gains/(losses)

562

(37)

525

Differences on amortisation/depreciation

233

(20)

213

Allocations to provisions

548

(179)

369

73

73

Tax losses

Allocated (released)
to Equity

31.12.2023

Other

202

(48)

154

Total

1,545

(211)

1,334

31.12.2022

Allocated (released)
to Income Statement

Allocated (released)
to Equity

31.12.2023

Foreign exchange gains/(losses)

725

144

(34)

835

Differences on amortisation/depreciation

1,391

1,391

Other

55

55

Total

2,171

Deferred tax

144

(34)

2,280

Note 13. Provisions for post-employment and retirement benefits
The breakdown of changes in “Provisions for post-employment and retirement benefits” at December 31, 2023
and at December 31, 2022 is shown below:
2023

2022

ChangeAt January 1

716

693

23

Amount allocated in the year

332

367

(35)

Utilisations

(158)

(239)

81

Receivables from INPS

(157)

(87)

(70)

Discounting

-

4

(4)

Other movements

55

(22)

77

At December 31

788

716

72

178   Datalogic S.p.A.

Note 14. Provisions for risks and charges“Provisions for non-current risks and charges” at December 31, 2023 amounted to €158 thousand and refer to the
portion accrued during the year in connection with long-term incentive and retention plans for personnel (middle
management and key people).

Note 15. Trade and other payables, accrued expense and deferred income
31.12.2023

31.12.2022

ChangeTrade payables

5,855

5,605

250

   of which subsidiaries

2,449

890

1,559

2

2

(1)

Other current payables

10,072

17,210(7,138)   of which subsidiaries

6,069

12,808(6,739)Current accrued expense and deferred income

443

513

(70)

-

70

(70)

   of which related parties   of which related parties

Trade payables“Trade payables” amounted to €5,855 thousand, up by €250 thousand versus the end of the prior year.
Other current payables
31.12.2023

31.12.2022

ChangePayables to employees

2,064

2,161

(97)

Payables to welfare and social security entities

1,333

1,234

99

Other payables

6,674

13,816(7,142)

10,072

17,210(7,138)Total“Other current payables”, amounting to €10,072 thousand at December 31, 2023, is explained below:
 “Payables to employees” for the fixed and variable component of remuneration, for holidays, as well as therelated “Payables to welfare and social security entities” regarding social security contributions; “Other payables” regards mainly payables to Group companies participating in the “Consolidated VAT” option.
The decrease is a result of the lower turnover recorded in the last quarter by the investees participating inthis system.

Datalogic S.p.A.   179

Annual Statutory Financial Report at December 31, 2023

Note 16. Net financial position
At December 31, 2023, the Net Financial Debt/(Net Financial Position) is broken down as follows:
31.12.2023

31.12.2022

40,43739,855--

C. Other current financial assets

253,126

276,530

D. Liquid assets (A) + (B) + (C)293,563316,385

75,00571,334279

273

F. Current portion of non-current financial debt

14,392

33,663

G. Current Financial Debt (E) + (F)89,397104,997(204,166)(211,388)

I. Non-current financial debt

79,31968,046   I1. of which lease payables

1,057

1,048

J. Debt instruments--

K. Trade and other non-current payables--

79,31968,046(124,847)(143,341)

A. Cash funds
B. Cash equivalents

E. Current financial debt   E1. of which lease payables

H. Current Net Financial Debt (Financial Position) (G) - (D)L. Non-Current Financial Debt (I) + (J) + (K)M. Total Net Financial Debt/(Net Financial Position) (H) + (L)The Net Financial Position at December 31, 2023 stood at €124,847 thousand, deteriorating by €18,494 thousand versus the prior year.
At December 31, 2023, the Company had outstanding financial credit lines of approximately €218.0 million, of
which approximately €193.0 million committed. Undrawn and readily available financial lines amounted to €125.0
million.
Indirect debt subject to conditions at December 31, 2023 is represented exclusively by the provision for post-­
employment benefits, amounting to €788 thousand.

180   Datalogic S.p.A.

INFORMATION ON THE INCOME STATEMENT
Note 17. Revenue
The Company’s revenue of €32,492 thousand consists of royalties charged to subsidiaries for use of the Datalogic
trademark and of invoices issued for intercompany services. The decrease of €3,451 thousand (-9.6%) versus theprior year reflects the drop in Group revenue.

Note 18. Cost of goods sold and operating costs
The following table shows the trends of cost of goods sold and operating costs at December 31, 2023, versus theprior year.
31.12.2023

31.12.2022

ChangeCost of goods sold

1,703

1,817

(114)

Operating costs

29,90533,374(3,469)Research and development expense

830

829

1

Distribution expense

2,145

2,379

(234)

Administrative and General expense

26,45829,835(3,377)

472

331

141

31,60835,191(3,583)

Other operating expense
Total

The Cost of Goods Sold amounted to €1,703 thousand, down by €114 thousand versus the prior year. Operating
costs amounted to €29,905 thousand, down by 10.4% versus the prior year. The breakdown of “Other operating
expense” is as follows:
31.12.2023

31.12.2022

ChangeNon-income tax

435

323

112

Other

37

8

29

Total

472

331

141

Datalogic S.p.A.   181

Annual Statutory Financial Report at December 31, 2023

Costs by nature
The following table shows the detail of costs (cost of goods sold and operating costs) by type:31.12.2023

31.12.2022

ChangePersonnel expense

15,175

16,439(1,264)

Software maintenance and assistance

6,055

5,283

772

Amortisation, depreciation and write-downs

3,982

4,126

(144)

Directors' fees

1,463

2,239

(775)

Utilities and telephone subscriptions

1,074

1,443

(369)

Technical, legal and tax consulting

765

1,610

(845)

Recruitment costs

505

767

(262)

Stock exchange costs and membership fees

355

403

(48)

Rental and building maintenance

282

292

(10)

Audit fees

236

279

(43)

Travel and accommodation

234

315

(81)

Insurance expense

186

181

5

Expense for personnel training

178

313

(135)

Advertising and Marketing

137

246

(109)

Vehicle leasing and maintenance

106

116

(10)

Entertainment expense

74

47

27

Fees to the Board of Statutory Auditors

69

68

1

Costs for services provided by subsidiary

60

354

(294)

Meeting expense

33

84

(51)

Patents

20

26

(6)

Other costs

618

560

58

31,60835,191(3,583)

Total cost of goods sold and operating costs

182   Datalogic S.p.A.

“Personnel expense”, amounting to €15,175 thousand (€16,439 thousand in the prior year), decreased by €1,264
thousand versus the prior year (-7.7%). Below are the details:
31.12.2023

31.12.2022

ChangeWages and salaries

11,086

11,774(689)

Social security charges

3,096

3,214

(118)

Post-employment benefits

347

355

(8)

Retirement benefits and the like

434

467

(33)

Other costs

212

628

(416)

15,175

16,439(1,264)31.12.2023

31.12.2022

Change

Rents

643

634

9

Operating grants

43

47

(4)

Ordinary capital gains

1

6

(5)

Other

214

228

(14)

Total

901

915

(14)

31.12.2023

31.12.2022

ChangeFinancial income (expense)

10,795

2,438

8,357

Foreign exchange differences

1,105

1,406

(301)

Fair Value

(34)

(223)

189

Bank expense

(182)

(138)

(44)

Dividends

7,121

27,328(20,207)

Other

190

27

163

18,99530,838(11,843)

Total

Note 19. Other revenue“Other revenue” shows a negative change of €14 thousand.

Note 20. Net Financials

Total net financials

Net financials ended with a positive €18,995 thousand versus €30,838 thousand at December 31, 2023. The change
from the comparison year is due mainly to lower dividends received from investees, partly offset by higher interest
income on intercompany financial receivables.

Datalogic S.p.A.   183

Annual Statutory Financial Report at December 31, 2023

Note 21. Tax
31.12.2023

31.12.2022

ChangeProfit before tax

20,78032,505(11,725)

Income tax

3,338

1,964

1,374

Deferred tax

354

122

232

Total Tax

3,693

2,087

1,606

Tax rate

17.8%

6.4%

11.4%

The average tax rate is 17.8% (6.4% at December 31, 2022). The reconciliation for 2023 and 2022 of the nominal
tax rate and the actual rate used in the Financial Statements is shown below:
2023

2022

Profit before tax

20,78032,505Nominal tax rate under Italian law(4,987)-24.0%(7,801)-24.0%

Effects of local tax

(631)

-3.0%

(337)

-1.0%

Effects of intercompany dividend taxation

1,623

7.8%

6,231

19.2%

Tax effects - prior years

(80)

-0.4%

(434)

-1.3%

Other effects

382

1.8%

255

0.8%

(3,693)-17.8%(2,087)-6.4%

Consolidated effective tax rate

Note 22. Audit fees
In accordance with the provisions of Article 149-duodecies of the Issuer Regulation, implementing Legislative
Decree no. 58 of February 24, 1998, the following is a table with the fees for 2023 paid to the Independent Auditors, broken down by auditing and other services:
2023
Datalogic S.p.A. - auditing

211

Total auditing

211

Non-auditing services

25

Total

236

Other services refer to the limited audit of the consolidated non-financial statement for the year ended December
31, 2023.

184   Datalogic S.p.A.

Note 23. Fees paid to Directors and Statutory Auditors
Reference for this information is made to the remuneration report that will be published pursuant to Article 123-terof the T.U.F. and made available on www.datalogic.com.

RELATED-PARTY TRANSACTIONS
For the definition of “Related Parties”, reference is made not only to IAS 24, approved by EC Regulation no. 1725/2003,
but also to the Procedure for Related-Party Transactions approved by the Board of Directors on November 4, 2010
(most recently amended on June 23, 2021) available on the Company website www.datalogic.com. The Company’s
parent is Hydra S.p.A. Related-party transactions are conducted in the ordinary course of business and at normal
market conditions. Additionally, there are related-party transactions carried out again in the ordinary course ofbusiness and at normal market conditions, of an immaterial amount pursuant to and for the purposes of the “RPT
Procedure”, attributable mainly to Hydra S.p.A. or to entities subject (with Datalogic S.p.A.) to common control orto persons exercising administrative and management functions at Datalogic S.p.A. (including entities controlled
by them and close family members).
Related-party transactions refer mainly refer to commercial and property transactions (instrumental and non-­instrumental premises for the Company leased or rented out), consulting services, and participation in tax consolidation. None of them are of particular economic or strategic importance to the Company, since receivables, payables, revenue, and expense from related parties do not have a material percentage impact on the total
amounts of the financial statements. Pursuant to Article 5, paragraph 8 of the Consob Regulations, in 2023, theCompany’s Board of Directors did not approve any transactions of greater significance as defined by Article 3,
paragraph 1, letter b) of the CONSOB Regulations, nor any other related-party transactions of minor significancethat materially affected the Company’s financial position or results.

Datalogic S.p.A.   185

Annual Statutory Financial Report at December 31, 2023

Hydra Datalogic S.r.l. Subsidiaries ofImmobiliare
Datalogic S.r.l.
S.n.c.
Receivables-

Trade receivables

Real EstateGroup
Companies

Informatics
Holdings Inc.

Datalogic IP
Tech S.r.l.

31.12.2023

241,430

27,476

100

1

2,009

271,016

15,024

1,522

100

1

454

17,101

Receivables from tax consolidation

655

Other receivables

655

129

0

5

134

Financial receivables from cash pooling

27,777

6,517

1,550

35,844Loans to subsidiaries

198,500

18,782

4,296

66,693

Payables2

217,282
2,588

8,738

Payables from tax consolidation

375

Payables from VAT tax consolidation

2,628

2,078

36

26

1,257

1,072

21

95

63,517

2,567

8,643

(75)

(272)

Other payables
Trade payables

2

Financial payables from cash pooling

7,766

90,083

6,462

6,837

1,301

6,007
62

3

2,451
74,726

Costs

(58)

(3,233)(2,752)

Commercial/service costs

(58)

(60)

105

512

333

0

13

11

868

(3,685)(3,190)

(75)

(285)

(19)

(7,254)54,421

3,998

80

-

724

59,224

Trade revenue

31,182

688

80

541

32,492Other revenue

581

1

58

640

Financial income

22,6583,309

125

26,092Other operating expense
Financial expense
Revenue

186   Datalogic S.p.A.

-(8)(6,399)(13)

ALLOCATION OF PROFIT FOR THE YEAR
Shareholders,given that the Financial Statements of Datalogic S.p.A. show a net profit for the year of €17,086,580, and since thelegal reserve has reached one-fifth of the share capital pursuant to Article 2430 of the Italian Civil Code, the Boardof Directors proposes the distribution to the Shareholders of an ordinary unit dividend, gross of tax, of 12 Euro
cents per share, for a maximum total amount of €6,437,579, drawing from profit for the year, with ex-dividend dateof July 15, 2024 (record date July 16, 2024) and payment starting on July 17, 2024 and to allocate the remaining
part of the profit for the year to the retained earnings reserve.
The Chairman of the Board of Directors(Romano Volta)

Datalogic S.p.A.   187

AnnexesAnnexes

Annex 1a
Certification of the Consolidated Financial Statements pursuant to Article 81-ter of Consob
Regulation no. 11971 of May 14, 1999 as subsequently amended and supplemented
1. The undersigned Valentina Volta, as CEO, and Alessandro D’Aniello, as Manager responsible for the preparation of the financial reports of Datalogic S.p.A., certify, also taking account of the provisions of Article 154-bis,paragraphs 3 and 4, of Legislative Decree no. 58 of February 24, 1998:
 the adequacy of the characteristics of the Company and the actual applicationof the administrative and accounting procedures in preparing the 2023 Consolidated Financial Statements.
2. The assessment of the adequacy of the administrative and accounting procedures for the preparation of the consolidated financial statements at December 31, 2023 was based on a specific process defined by Datalogic S.p.A.
consistent with the Internal Control – Integrated Framework model issued by the Committee of Sponsoring
Organizations of the Treadway Commission, which groups together a set of general principles of reference generally accepted at the international level.
3. Moreover, the following is certified:
3.1 the Consolidated Financial Statements:
a. were prepared in accordance with the International Financial Reporting Standards endorsed by the European Union pursuant to EC Regulation no. 1606/2002 of the European Parliament and Council of 19 July
2002;
b. are consistent with the accounting records and books;
c. provide a true and fair view of the financial position, the results of operations and the cash flows of theIssuer and of the companies included in the consolidation scope;
3.2 the Report on Operations contains a reliable analysis on performance and the results of operations, as well ason the position of the Issuer and on the companies included in the consolidation scope, together with a description of the main risks and uncertainties they are exposed to.
Lippo di Calderara di Reno (BO), March 14, 2024

Chief Executive Officer		Valentina Volta

190   Datalogic GroupManager responsible for the preparationof the Company’s financial reports
Alessandro D’AnielloAnnexes

Annex 1b
Certification of the Financial Statements pursuant to Article 81-ter of Consob Regulation no.
11971 of 14 May 1999 as subsequently amended and supplemented
1. The undersigned Valentina Volta, as CEO, and Alessandro D’Aniello, as Manager responsible for the preparation of the financial reports of Datalogic S.p.A., certify, also taking account of the provisions of Article 154-bis,paragraphs 3 and 4, of Legislative Decree no. 58 of February 24, 1998:
 the adequacy of the characteristics of the Company and the actual applicationof the administrative and accounting procedures in preparing the 2023 financial statements.
2. The assessment on the adequacy of the administrative and accounting procedures for the preparation of thefinancial statements at December 31, 2023 is based on a procedure established by Datalogic S.p.A. in compliancewith the Internal Control – Integrated Framework model, issued by the Committee of Sponsoring Organizationsof the Treadway Commission, which is the reference framework generally accepted at the international level.
3. Moreover, the following is certified:
3.1 the Financial Statements:
a. were prepared in accordance with the International Financial Reporting Standards endorsed by the European Union pursuant to EC Regulation no. 1606/2002 of the European Parliament and Council of 19 July 2002;
b. are consistent with the accounting records and books;
c. provide a true and fair view of the financial position, the results of operations and the cash flows of theIssuer;
3.2 the Report on Operations contains a reliable analysis on performance and the results of operations, as well
as of the position of the Issuer, together with a description of the main risks and uncertainties it is exposed to.
Lippo di Calderara di Reno (BO), March 14, 2024

Chief Executive Officer		Valentina VoltaManager responsible for the preparationof the Company’s financial reports
Alessandro D’AnielloDatalogic S.p.A.   191

Annexes

Annex 2
Consolidation scope
the Consolidated Annual Financial Report includes the interim statements of the Parent Company and of thecompanies in which it directly and/or indirectly has control or significant influence. The statements of the subsidiaries were duly adjusted, where necessary, to make them consistent with the Parent Company’s AccountingStandards. The companies included in the consolidation scope at December 31, 2023, consolidated on a line-byline basis, are shown hereunder:
Company nameRegistered office

Datalogic S.p.A.

Bologna - Italy

Euro

30,392,175

340,492

17,087

Datalogic Real Estate France Sas

Courtabeuf Cedex - France

Euro2,227,500

4,067

144

100%

Datalogic Real Estate UK Ltd.

Redbourn - United Kingdomof Great Britain

GBP

3,500,000

4,735

160

100%

Datalogic IP Tech S.r.l.

Bologna - Italy

Euro65,67731,808(4,268)

100%

Informatics Holdings, Inc.

Plano, Texas - USA

USD

1,568

21,062

2,292

100%

Wasp Barcode Technologies Ltd.

Redbourn - United Kingdomof Great Britain

GBP

0

272

14

100%

Datalogic (Shenzhen) Industrial Automation Co. Ltd. Shenzhen - China

CNY2,136,696

6,282

825

100%

Datalogic Hungary Kft

Balatonboglar - Hungary

HUF

3,000,000

1,841

1,811

100%

Datalogic S.r.l.

Bologna - Italy

Euro

10,000,000

126,509(16,290)

100%

Datalogic Slovakia S.r.o.

Trnava - Slovakia

Euro

66,388

6,552

2,071

100%

Datalogic USA Inc.

Eugene OR - Usa

USD

100

260,976

10,053100%

Datalogic do Brazil Ltda.

Sao Paulo - Brazil

BRL

20,257,000

901

158

100%

Datalogic Technologia de Mexico S.r.l.

Colonia Cuauhtemoc - Mexico

MXN

0

(464)

(11)

100%

Datalogic Scanning Eastern Europe GmbH

Langen - GermanyEuro

25,000

3,590

(237)

100%

Datalogic Australia Pty Ltd.

Mount Waverley (Melbourne)- Australia

AUD

3,188,120

1,532

134

100%

Datalogic Vietnam LLC

Vietnam

USD

3,000,000

29,847

3,847

100%

Datalogic Singapore Asia Pacific Pte Ltd.

Singapore

SGD

3

4,098

652

100%

Datasensing S.r.l.

Modena - Italy

Euro2,500,000

18,208(2,409)100%

M.D. Micro Detectors (Tianjin) CO., Ltd.

Tianjin - China

CNY

13,049,982

1,369

142

100%

Datasensing Ibérica, S.A.U.

Barcelona - Spain

Euro

120,000

1,513

137

100%

Datalogic Japan Co., Ltd.

Tokyo - Japan

JPY

9,913,000

154

25

100%

PEKAT S.r.l.

Bologna - Italy

Euro8,583.33(991)(1,023)

100%

Suzhou Mobydata Smart System Co. Ltd.

Suzhou, JiangSu - China

CNY

161,224

5,888

(760)

51%

192   Datalogic Group

Share capital

Total equity Profit (loss) for(Euro/ the year (Euro/
thousands)
thousands)%
Ownership

Annexes

Companies consolidated by the equity method at December 31, 2023 are as follows:
Company nameRegistered office

Share capital

Total equity Profit (loss) for(Euro/ the year (Euro/
thousands)
thousands)%
Ownership

Datasensor GmbH (*)

Otterfing - GermanyEuro

150,0000

230%

CAEN RFID S.r.l. (***)

Viareggio LU - Italy

Euro150,000

781

25

20%

R4I S.r.l. (***)

Benevento - Italy

Euro

131,171

238

(40)

20%

Datalogic Automation AB (**)

Malmö - Sweden

SEK

100,000

2,018

687

20%

(*) figures at December 31, 2021.
(**) figures at June 30, 2022.
(***) figures at December 31, 2022.

Datalogic Group   193

Annexes

Annex 3
Reconciliation of alternative performance indicators (NON-GAAP measures)
Below is a reconciliation of EBIT and adjusted EBIT at December 31, 2023 versus December 31, 2022.
31.12.2023

31.12.2022

ChangeAdjusted EBIT

16,883

3.15%

49,0967.50%(32,213)

Special Items – Other (Expense) and Income

2,541

0.47%

2,922

0.45%

(381)

Special Items – D&A from acquisitions

4,735

0.88%

5,239

0.80%

(504)

Total

7,275

1.36%

8,161

1.25%

(886)

EBIT

9,608

1.8%

40,935

6.3%(31,327)

Below is a reconciliation of EBITDA and adjusted EBITDA at December 31, 2023 versus December 31, 2022.
31.12.2023

31.12.2022

ChangeAdjusted EBITDA

49,4569.22%

80,286

12.26%(30,830)

Cost of goods sold

128

0.02%

413

0.06%

(285)

Research and Development expense

231

0.04%

-

0.00%

231

Distribution expense

414

0.08%

1,450

0.22%

(1,036)

Administrative and General expense

1,768

0.33%

1,059

0.16%

709

-

0.00%

-

0.00%

-

Total

2,541

0.47%

2,922

0.45%

(381)

EBITDA

46,915

8.74%

77,36411.82%(30,449)

Other (expense) income

194   Datalogic GroupAnnexes

Annex 4
Restatement 2022
Comparative results at December 31, 2023, have been restated following reclassifications of certain items toensure full comparability of 2022 results with 2023 results.

Restatement Income Statement 2022
(Euro/000)

31.12.2022

1) Revenue

654,632

654,632

Revenue from sale of products

607,524

607,524

Revenue from services

47,10847,1082) Cost of goods sold
Gross Operating Margin (1-2)

Restatement

31.12.2022
Restated

380,525

12,011

392,536

274,107(12,011)

262,0963) Other revenue

4,612

4) Research and development expense

63,090(787)

62,3035) Distribution expense

114,909(12,817)

102,0926) Administrative and general expense

57,171

1,593

58,7647) Other operating expense

2,614

Total operating costs

237,784

EBIT

40,93540,9358) Financial income

28,20328,2039) Financial expense

34,882

34,882Net Financials (8-9)(6,679)(6,679)Profit/(Loss) before tax from continuing operations

34,25634,256

4,130

4,130

30,12630,126

		Income tax
Net Profit/(Loss) for the year

4,612

2,614
(12,011)

225,773		

Basic earnings/(loss) per share (€)

0.52

0.52

		

Diluted earnings/(loss) per share (€)

0.52

0.52

Shareholders of the Parent

29,55029,550Non-controlling interests

576

576

Attributable to:Datalogic Group   195

Annexes

Annex 5
List of investments in subsidiaries and affiliates at December 31, 2023
Company nameRegistered office

Share capitalin localcurrency

Equity^Pro-rata
Equity^Informatics Holdings, Inc.

Plano (Texas) - USA

Datalogic S.r.l.

Bologna - Italy

Profit/(loss) % owned
for the year^

Carrying
amount^Difference

USD

1,568

21,334

21,334

2,306

100%

11,011

10,323EUR

10,000,000

126,510

126,510(16,290)100%

151,831(25,321)

Datalogic Real Estate France Sas Courtabeuf Cedex France

EUR

2,227,500

4,067

4,067

144

100%

3,919

148

Datalogic Real Estate UK Ltd.

Redbourn - United
Kingdom

GBP

3,500,000

4,735

4,735

160

100%

3,668

1,067

Datalogic IP Tech S.r.l.

Bologna - Italy

EUR

65,67731,80815,904(4,268)50%

18,095(2,191)

188,524(15,974)

Total subsidiaries
CAEN RFID S.r.l.(*)

Viareggio Lu - Italy

EUR

150,000

781

156

25

20%

582

(426)

R4I S.r.l.(*)

Benevento - Italy

EUR

131, 171

238

48

(40)

20%

150

(102)

732

(528)

7

0

0

n,d,

4

2

7

(7)

0.0%

52

(52)

0.3%

99

n,d,

1,550

n,d,

1,719

(57)

Total associates
Nomisma S.p.A.(*)

Bologna - Italy

EUR

6,963,500

11,969

7

1,018

0.0%

Conai
Caaf Ind. Emilia Romagna

Bologna - Italy

EUR

377,884

670

6

2

1.0%

T3 LAB Consortium
Crit S.r.l.(**)

Modena - Italy

EUR

IDEC Corporation

Osaka - JapanYEN

Mandarin III

Luxembourg

EUR

Total other companies(*) at 31.12.2022.
(**) at 31.12.2021.
^ amounts in Euro thousands at 31.12.2023.

196   Datalogic S.p.A.

413,800

926

0

83

Annexes

Annex 6aReport on the Audit of the Consolidated Financial Statements 2023
Deloitte & Touche S.p.A.
Piazza Malpighi, 4/2
40123 Bologna
ItaliaTel: +39 051 65811
Fax: +39 051 230874
www.deloitte.it

INDEPENDENT AUDITOR’S REPORTPURSUANT TO ARTICLE 14 OF LEGISLATIVE DECREE No. 39 OF JANUARY 27, 2010
AND ARTICLE 10 OF THE EU REGULATION 537/2014
To the Shareholders of
Datalogic S.p.A.
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
OpinionWe have audited the consolidated financial statements of Datalogic S.p.A. and its subsidiaries (“Datalogic
Group” or the “Group”), which comprise the consolidated statement of financial position as at December
31, 2023, the consolidated income statement, the consolidated statement of comprehensive income,the consolidated statement of changes in equity and the consolidated statement of cash flow for theyear then ended, and the explanatory notes to the consolidated financial statements, including material
accounting policy information.
In our opinion, the accompanying consolidated financial statements give a true and fair view of theconsolidated financial position of the Group as at December 31, 2023, and of its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards as adopted by the European Union and the requirements of national
regulations issued pursuant to art. 9 of Italian Legislative Decree no. 38/05.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of Datalogic S.p.A.
(the “Company”) in accordance with the ethical requirements applicable under Italian law to the audit of
the financial statements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

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www.deloitte.com/about.
© Deloitte & Touche S.p.A.

Datalogic Group   197

Annexes

2

Stimate of revenue adjustments for discounts and returns
Description of the key
audit matter

Datalogic Group grants to its customers commercial discounts and accepts
returns from them, in accordance with the existing contractual agreements;
these adjustments are accounted for against revenues.
The processes and methodologies to evaluate and determine the estimatedportion of discounts to be granted and returns to be received after year-end
are based on the terms agreed with the customers as well as on accounting
and operating data both prepared internally by Group companies andreceived by the sales network.
Since the computation of the above adjustments to revenues requires
significant judgments by the Management with reference to the estimate of
their amounts, we considered the accounting of these adjustments as a key
audit matter of the Group's consolidated financial statements.
The disclosures related to this matter are included in the note "10) Use of
estimates and assumptions", in the note “7) Trade and other receivables”
and in the note "5) Accounting policies and standards applied" at theparagraph "Revenues recognition".

Audit procedures
performed

With reference to the identified key audit matter, we performed thefollowing audit procedures:• identification and understanding of key controls implemented by
Management over the computation of the above adjustments to revenue
and test of the related operating effectiveness;• analysis of the reasonableness of Managements’ main assumptions used
to estimate the adjustments to revenues;• performance of analytical and substantive procedures in order to verify
the accuracy and completeness of the data used by Management;• analysis of the main sales agreements in place, in order to ascertain thatthe relevant terms and clauses have been taken into account by
Management in determining the adjustments to revenues;• performance of analytical review procedures comparing historical data
related to actual returns and discounts and the estimates made byManagement.

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3

Impairment test of the Datalogic Business CGU’s goodwill
Description of the key
audit matter

Datalogic Group accounted for a goodwill of Euro 192 million allocated to
the Datalogic Business cash generating unit ("CGU") deriving mainly fromacquisitions made in prior years in the US market.
As provided by “IAS 36 Impairment of assets", goodwill is not amortised but
subjected to an impairment test at least once a year, by comparing therecoverable amount of each CGU – determined in the specific case inaccordance with the value in use methodology - and the carrying amount,which includes both the goodwill and the other assets allocated to the CGU.
The estimate process of the value in use adopted by Management is complex
and is based on assumptions related, among others, to the forecast of the
expected cash flows of each CGUs, the determination of an appropriate
discount rate (WACC) and of a long-term growth rate (g-rate). Theseassumptions are, by nature, influenced by future expectations regarding theevolution of external market conditions linked to the propensity to invest in
the Group's products.
Considering the size of the goodwill allocated to the Datalogic Business CGU
and the subjectivity of the assumptions underlying the estimate of therecoverable value of the CGU, we considered the impairment test of theaforementioned CGU a key audit matter of the consolidated financial
statements of Datalogic Group.
Note 2 to the consolidated financial statements discloses information
regarding the goodwill which have been accounted for and some indications
related to the "sensitivity analysis" carried out with respect to the changes in
the key variables used for the purposes of the impairment test.

Audit procedures
performed

With reference to the key audit matter identified, after having examinatedthe methods used by Management to determine the value in use of the
Datalogic Business CGU, analyzing the methods and the assumptions used by
Management to perform the impairment test, we carried out the following
main audit procedures, also with the support of experts:• identification and understanding of the relevant controls implemented byDatalogic Group over the impairment test process;• analysis of the reasonableness of the main assumptions used to forecast
the expected cash flows, even with the recourse to data analysis on the
expected revenue growth in the relevant industry and by obtaining otherinformation from Management that we deemed to be relevant;Datalogic Group   199

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4• analysis of actual data of the year compared to the original plan, in order
to assess the nature of the variances and the reliability of the planning
process;• assessment of the reasonableness of the discount rate (WACC) and of thelong-term growth rate (g-rate);• verification of the mathematical accuracy of the model used to determine
the value in use of the Datalogic Business CGU;
• verification that the carrying amount of the Datalogic Business CGU wasdetermined properly and comparison with the value in use resulting fromthe impairment test;• verification of the sensitivity analysis prepared by Management;
We have also examined the adequacy and the compliance of the disclosuresprovided by the Group on the impairment test with respect to therequirements of IAS 36.
Responsibilities of the Directors and the Board of Statutory Auditors for the Consolidated Financial
Statements
The Directors are responsible for the preparation of consolidated financial statements that give a trueand fair view in accordance with International Financial Reporting Standards as adopted by the European
Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree
no. 38/05, and, within the terms established by law, for such internal control as the Directors determine
is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing theGroup’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless they have identified the existence of theconditions for the liquidation of the Company or the termination of the business or have no realistic
alternatives to such choices.
The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, theGroup’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.

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As part of an audit in accordance with International Standards on Auditing (ISA Italia), we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor’s reportto the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.
We communicate with those charged with governance, identified at an appropriate level as required by
ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence applicable in Italy, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the consolidated financial statements of the current period andare therefore the key audit matters. We describe these matters in our auditors’ report.

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6

Other information communicated pursuant to art. 10 of the EU Regulation 537/2014
The Shareholders' Meeting of Datalogic S.p.A. has appointed us on April 30, 2019 as auditors of theCompany for the years from December 31, 2019 to December 31, 2027.
We declare that we have not provided prohibited non-audit services referred to in art. 5 (1) of EU
Regulation 537/2014 and that we have remained independent of the Company in conducting the audit.
We confirm that the opinion on the financial statements expressed in this report is consistent with theadditional report to the Board of Statutory Auditors, in its role of Audit Committee, referred to in art. 11of the said Regulation.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Opinion on the compliance with the provisions of the Delegated Regulation (EU) 2019/815
The Directors of Datalogic S.p.A. are responsible for the application of the provisions of the European
Commission Delegated Regulation (EU) 2019/815 with regard to the regulatory technical standards on
the specification of the single electronic reporting format (ESEF – European Single Electronic Format)(hereinafter referred to as the “Delegated Regulation”) to the consolidated financial statements as at
December 31, 2023, to be included in the annual financial report.
We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 700B in order toexpress an opinion on the compliance of the consolidated financial statements with the provisions of theDelegated Regulation.
In our opinion, the consolidated financial statements as at December 31, 2023 have been prepared in
XHTML format and have been marked up, in all material respects, in accordance with the provisions of
the Delegated Regulation.
Due to certain technical limitations, some information contained in the explanatory notes to theconsolidated financial statements, when extracted from XHTML format in an XBRL instance, may not be
reproduced in the same way as the corresponding information displayed in the consolidated financial
statements in XHTML format.
Opinion pursuant to art. 14 paragraph 2 (e) of Legislative Decree 39/10 and art. 123 -bis, paragraph 4, ofLegislative Decree 58/98
The Directors of Datalogic S.p.A. are responsible for the preparation of the report on operations and thereport on corporate governance and the ownership structure of Datalogic Group as at December 31,
2023, including their consistency with the related consolidated financial statements and their compliancewith the law.

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7

We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 720B in order toexpress an opinion on the consistency of the report on operations and some specific information
contained in the report on corporate governance and the ownership structure set forth in art. 123-bis, n.
4 of Legislative Decree 58/98, with the consolidated financial statements of Datalogic Group as at
December 31, 2023 and on their compliance with the law, as well as to make a statement about any
material misstatement.
In our opinion, the above-mentioned report on operations and some specific information contained in
the report on corporate governance and the ownership structure are consistent with the consolidated
financial statements of Datalogic Group as at December 31, 2023 and are prepared in accordance withthe law.
With reference to the statement referred to in art. 14, paragraph 2 (e), of Legislative Decree 39/10,
made on the basis of the knowledge and understanding of the entity and of the related context acquired
during the audit, we have nothing to report.
Statement pursuant to art. 4 of the Consob Regulation for the implementation of Legislative Decree 30
December 2016, no. 254
The Directors of Datalogic S.p.A. are responsible for the preparation of the non-financial statement
pursuant to Legislative Decree 30 December 2016, no. 254.
We verified the approval by the Directors of the non-financial statement.
Pursuant to art. 3, paragraph 10 of Legislative Decree 30 December 2016, no. 254, this statement issubject of a separate attestation issued by us.
DELOITTE & TOUCHE S.p.A.
Signed byAlberto Guerzoni
Partner
Bologna, Italy
March 27, 2024

As disclosed by the Directors on page 2, the accompanying consolidated financial statements of Datalogic S.p.A.
constitute a non-official version which has not been prepared in accordance with the provisions of the Commission
Delegated Regulation (EU) 2019/815. This independent auditor’s report has been translated into the English
language solely for the convenience of international readers. Accordingly, only the original text in Italian language isauthoritative.

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Annex 6b
Report on the Audit of the Financial Statements 2023
Deloitte & Touche S.p.A.
Piazza Malpighi, 4/2
40123 Bologna
ItaliaTel: +39 051 65811
Fax: +39 051 230874
www.deloitte.it

INDEPENDENT AUDITOR’S REPORTPURSUANT TO ARTICLE 14 OF LEGISLATIVE DECREE No. 39 OF JANUARY 27, 2010
AND ARTICLE 10 OF THE EU REGULATION 537/2014
To the Shareholders of
Datalogic S.p.A.
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OpinionWe have audited the financial statements of Datalogic S.p.A. (the “Company“), which comprise thestatement of financial position as at December 31, 2023, the income statement, the statement ofcomprehensive income, the statement of changes in equity and the statement of cash flow for the year
then ended, and the explanatory notes to the financial statements, including material accounting policy
information.
In our opinion, the accompanying financial statements give a true and fair view of the financial positionof the Company as at December 31, 2023, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by the European
Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree
no. 38/05.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Financial Statements section of our report. We are independent of the Company in accordancewith the ethical requirements applicable under Italian law to the audit of the financial statements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
There are not key audit matters to be communicated in the hereby report.

Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Udine Verona
Sede Legale: Via Tortona, 25 - 20144 Milano | Capitale Sociale: Euro 10.328.220,00 i.v.
Codice Fiscale/Registro delle Imprese di Milano Monza Brianza Lodi n. 03049560166 - R.E.A. n. MI-1720239 | Partita IVA: IT 03049560166
Il nome Deloitte si riferisce a una o più delle seguenti entità: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata (“DTTL”), le member firm aderenti al suo network e
le entità a esse correlate. DTTL e ciascuna delle sue member firm sono entità giuridicamente separate e indipendenti tra loro. DTTL (denominata anche “Deloitte Global”) non fornisce servizi aiclienti. Si invita a leggere l’informativa completa relativa alla descrizione della struttura legale di Deloitte Touche Tohmatsu Limited e delle sue member firm all’indirizzo
www.deloitte.com/about.
© Deloitte & Touche S.p.A.

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2

Responsibilities of the Directors and the Board of Statutory Auditors for the Financial Statements
The Directors are responsible for the preparation of financial statements that give a true and fair view inaccordance with International Financial Reporting Standards as adopted by the European Union and therequirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree no. 38/05 and,within the terms established by law, for such internal control as the Directors determine is necessary toenable the preparation of financial statements that are free from material misstatement, whether due tofraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless they have identified the existence of the conditions for theliquidation of the Company or for the termination of the operations or have no realistic alternative tosuch choices.
The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, theCompany’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with International Standards on Auditing (ISA Italia) will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.

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3• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
We communicate with those charged with governance, identified at an appropriate level as required by
ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence applicable in Italy, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and,
where applicable, actions taken to eliminate threats or safeguards applied.
Other information communicated pursuant to art. 10 of the EU Regulation 537/2014
The Shareholders' Meeting of Datalogic S.p.A. has appointed us on April 30, 2019 as auditors of theCompany for the years from December 31, 2019 to December 31, 2027.
We declare that we have not provided prohibited non-audit services referred to in art. 5 (1) of EU
Regulation 537/2014 and that we have remained independent of the Company in conducting the audit.
We confirm that the opinion on the financial statements expressed in this report is consistent with theadditional report to the Board of Statutory Auditors, in its role of Audit Committee, referred to in art. 11of the said Regulation.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Opinion on the compliance with the provisions of the Delegated Regulation (EU) 2019/815
The Directors of Datalogic S.p.A. are responsible for the application of the provisions of the European
Commission Delegated Regulation (EU) 2019/815 with regard to the regulatory technical standards on
the specification of the single electronic reporting format (ESEF – European Single Electronic Format)(hereinafter referred to as the “Delegated Regulation”) to the financial statements as at December 31,
2023, to be included in the annual financial report.
We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 700B in order toexpress an opinion on the compliance of the financial statements with the provisions of the DelegatedRegulation.

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4

In our opinion, the financial statements as at December 31, 2023 have been prepared in XHTML format
in accordance with the provisions of the Delegated Regulation.
Opinion pursuant to art. 14, paragraph 2 (e), of Legislative Decree 39/10 and art. 123-bis, paragraph 4, ofLegislative Decree 58/98
The Directors of Datalogic S.p.A. are responsible for the preparation of the report on operations and thereport on corporate governance and ownership structure of Datalogic S.p.A. as at December 31, 2023,
including their consistency with the related financial statements and their compliance with the law.
We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 720B in order toexpress an opinion on the consistency of the report on operations and some specific information
contained in the report on corporate governance and ownership structure set forth in art. 123-bis, n. 4of Legislative Decree 58/98 with the financial statements of Datalogic S.p.A. as at December 31, 2023
and on their compliance with the law, as well as to make a statement about any material misstatement.
In our opinion, the above-mentioned report on operations and information contained in the report on
corporate governance and ownership structure are consistent with the financial statements of
Datalogic S.p.A. as at December 31, 2023 and are prepared in accordance with the law.
With reference to the statement referred to in art. 14, paragraph 2 (e), of Legislative Decree 39/10,
made on the basis of the knowledge and understanding of the entity and of the related context acquired
during the audit, we have nothing to report.
DELOITTE & TOUCHE S.p.A.
Signed byAlberto Guerzoni
Partner
Bologna, Italy
March 27, 2024

As disclosed by the Directors on page 2, the accompanying financial statements of Datalogic S.p.A. constitute a non-official
version which has not been prepared in accordance with the provisions of the Commission Delegated Regulation (EU)2019/815. This independent auditor’s report has been translated into the English language solely for the convenience ofinternational readers. Accordingly, only the original text in Italian language is authoritative.

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Annex 7
Board of Statutory Auditors’ Report
BOARD OF STATUTORY AUDITORS’ REPORT TO THE SHAREHOLDERS' MEETING OF DATALOGIC
S.P.A. PURSUANT TO ARTICLE 153 OF LEGISLATIVE DECREE 58/1998 AND ARTICLE 2429,
PARAGRAPH 2, OF THE ITALIAN CIVIL CODE***
Shareholders,
this Board of Statutory Auditors’ Report to the Shareholders' Meeting of Datalogic S.p.A. for the year
ended December 31, 2023 has been prepared by the Board of Statutory Auditors of Datalogic S.p.A.
(the "Company"), composed of Chair Diana Rizzo and Standing Auditors Elena Lancellotti and Roberto
Santagostino (the "Board of Statutory Auditors"), appointed by the Shareholders' Meeting held on
April 29, 2022, and in office until the Shareholders' Meeting called to approve the financial statements
for the year ending December 31, 2024.
1) Foreword: statutory, regulatory and ethical sources
This report has been prepared in accordance with CONSOB Notice No. DEM/1025564 of April 6, 2001,
as amended and supplemented by Notice No. DEM/3021582 of April 4, 2003 and Notice No.
DEM/6031329 of April 7, 2006, and with Rule Q.10. "Report to the Shareholders' Meeting" of the Rulesof Conduct for the Board of Statutory Auditors of Listed Companies, published by the Italian
Association of Public Accountants and Accounting Professionals on December 21, 2023.
During the year ended December 31, 2023, the Board carried out its supervisory activities incompliance with the provisions of the Italian Civil Code and Legislative Decree No. 58/1998 TUF,
conforming to the principles of conduct recommended by the Italian Association of Public Accountantsand Accounting Professionals, CONSOB provisions on corporate controls and the activities of the Boardof Statutory Auditors, and the recommendations of the Corporate Governance Code, to which theCompany adheres.
During the year, the Board of Statutory Auditors obtained the necessary information to carry out its
general supervisory duties. This was accomplished through the established system of information
flows, as well as by attending the meetings of the Board of Directors.
The Board maintained frequent communication with the Manager responsible for the preparation of
the Company’s financial reports and the Internal Audit department. Regular meetings were also heldwith the Independent Auditors Deloitte & Touche S.p.A.. It also met with the heads of key businessdepartments.
The Board supervised the adequacy of the administrative-accounting system and its reliability inaccurately presenting operations. Additionally, the Board of Statutory Auditors, acting as the "Internal
1
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Control and Audit Committee” under Legislative Decree No. 39/2010 for Datalogic's traditional
governance model, is responsible for additional specific control, monitoring functions on financial
reporting, and statutory auditing.
The Board's recommendations and suggestions are communicated to the relevant internal
departments both during meetings and through the Company's support function for the Board, which
also monitors their implementation. That being said, the following are the supervisory activities
carried out during the year and the information referred to in CONSOB Communication No. 1025664
of April 6, 2001, as amended and supplemented.

2) Supervisory activities on compliance with the law and bylaws
In 2023, the Board of Statutory Auditors held six individual meetings in addition to six meetings held
jointly with the Control, Risks, Remuneration and Appointments Committee. The control andsupervisory activities carried out are documented in the relevant minutes. In the current year and up
to the date of approval of this report, the Board of Statutory Auditors held two individual and three
joint meetings with the Control, Risks, Remuneration and Appointments Committee.
The Statutory Auditors also attended the only Shareholders' Meeting held on April 27, 2023 and sevenmeetings of the Board of Directors. For more details on the meetings of corporate bodies, please referto the Report on Corporate Governance and Ownership Structure available on the company website(www.datalogic.com). During these meetings, the Board acquired the necessary elements to carry out
the activity of verifying compliance with the law and bylaws. Specifically, the Board of Statutory
Auditors supervised the compliance of the Board of Directors' proposal to the Shareholders' Meeting
regarding dividend distribution, as well as the company's adherence to its disclosure obligations
related to regulated, price-sensitive or required information by the Supervisory Authority.
With regard to the above, there were no irregularities or other matters that need to be shown in thisreport.
3) Supervisory activities on compliance with the principles of proper administration
The Board of Statutory Auditors acquired knowledge of and supervised, within its remit, compliancewith the principles of proper administration and protection of the Company's assets. The
administrative activity did not prompt any notable remarks or observations from either our end orfrom any other corporate body vested with specific control functions.
In 2023, the Board of Statutory Auditors received adequate information from the Board of Directors
and Directors with delegated powers regarding the general performance of operations, business
2
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outlook, and the most significant strategic, equity, income and financial transactions carried out by
the Company and its subsidiaries, including through attending Board of Directors meetings andmeetings with the Chief Executive Officer, in compliance with the legal periodic requirements. In thisregard, the Board of Statutory Auditors assesses the information provided by the directors in theReport on Operations as adequate, to which reference is made.
No changes occurred in 2023 in the current governing body.
The Board took note of the statements made pursuant to Article 2391 of the Italian Civil Code.
The Board of Statutory Auditors took note of and supervised compliance with proper administration
principles within its remit, through direct observation, gathering information from the heads of thedepartments within the company, including the Director in charge of the internal control and risk
management system, meetings with the Control, Risks, Remuneration and Appointments Committee,
and with the heads of the Independent Auditors, where relevant data and information were
exchanged, and with the Supervisory Board in accordance with Legislative Decree 231/2001.
Specifically, with regard to the decision-making processes of the Board of Directors, the Board of
Statutory Auditors assessed, including through direct participation in board meetings, compliance withthe law and the bylaws in the management choices made by the Directors.
Based on the information made available, as well as on the results of the audits conducted, the Boardof Statutory Auditors can reasonably believe that the most significant equity, income and financialtransactions carried out by the Company are in compliance with the principles of proper
administration, in accordance with the law and the bylaws, not excessively risky or imprudent, and inalignment with the resolutions passed by the Shareholders' Meeting without compromising the
integrity of the company's assets.
4) Supervisory activities on the adequacy of the organisational structure
The Company's Board of Directors, in a resolution dated April 29, 2021, reserved for itself, inter alia,
the power to define Datalogic's corporate governance system and the Group's corporate structure, as
well as to assess the adequacy of the company's organisational, administrative, and accounting
structure and that of its strategic subsidiaries.
During the year, the Board of Statutory Auditors supervised compliance with the existing obligationsof the Board of Directors and delegated bodies on the need to ensure an organisational,
administrative, and accounting structure appropriate to the nature and size of the company.
Specifically, the Board of Statutory Auditors took note of the positive evaluations expressed in thisregard by the Board of Directors, which, also based on the favorable opinion from the Control, Risks,
Remuneration and Appointments Committee, and considering the implemented procedures, assessed
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the Company's organisational, administrative and accounting structure as adequate, effective and inoperation. In this regard, the Board supervised the evaluation process without finding any elements
to report. Furthermore, the Board of Statutory Auditors acquired knowledge of and supervised theadequacy of the Company's organisational structure and its operation, including by gathering
information from the relevant departments, hearing from the heads of the relevant corporate
departments, and meeting with the heads of audit.
The Board also met periodically with the Supervisory Board under Legislative Decree No. 231/2001.
Based on the information received, there were no violations of the provisions of the 231
Organisational Model or situations worthy of note.
5) Supervisory activities on the adequacy of the internal control system
In its supervisory role over the adequacy of the internal control and risk management system (SCIGR),
under Article 149 TUF and Recommendation 32 of the Corporate Governance Code, the Board
supervised and acquired information during meetings with the Control, Risks, Remuneration andAppointments Committee, the Head of Internal Audit, the Supervisory Board, the Manager
responsible for the preparation of the Company’s financial reports, the Independent Auditors, theChief Executive Officer in his capacity as the main person responsible for managing the company andas the director in charge of the internal control and risk management system, the Chairman and othercorporate departments. Following these interactions, no significant situations or critical issues ofparticular importance were identified.
The activities conducted by the Internal Audit department did not find any significant critical issues
but identified areas for improvement, which are continuously monitored.
Additionally, the Board of Directors, based on the assessments conducted by the Control, Risks,
Remuneration and Appointments Committee, based on the information gathered by the Internal
Audit department and the Supervisory Board, having heard the Board of Statutory Auditors, mostrecently at its meeting on March 14, 2024, positively assessed the adequacy, effectiveness andeffective operation of the internal control system at December 31, 2023.
6) Supervisory activities on the adequacy of the administrative accounting system and statutory
auditing.
6.1 Supervisory activities on the administrative accounting system and the financial reporting
process.
The Board of Statutory Auditors supervised the adequacy of the financial reporting process and theadministrative accounting system and its reliability in correctly presenting operations, by obtaining
information from the heads of the relevant corporate departments (including the Manager responsible
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for the preparation of the Company’s financial reports, the Group Accounting and Financial Report
Director, and the Head of Internal Audit), reviewing corporate documents, and analysing the resultsof the work performed by the Independent Auditors Deloitte & Touche S.p.A.; the assessments
conducted by the Board of Statutory Auditors showed that the company procedures and control
procedures under Law no. 262/2005 are updated to take account of organisational and businessdevelopments, as well as to ensure ongoing improvement of the system of internal controls; theseprocedures proved to be adequate with regard to the size and business of the Company and the Group.
The Board of Statutory Auditors informs that it has reviewed the report issued by the Manager
responsible for the preparation of the Company’s financial reports.
The Board of Statutory Auditors also took note of the certifications issued - pursuant to and for the
purposes of Article 154-bis, paragraph 5 TUF - by the Chief Executive Officer and the Manager
responsible for the preparation of the Company’s financial reports regarding the adequacy andeffective application, in 2023, of the administrative and accounting procedures for the preparation of
the separate and consolidated financial statements.
The Board of Statutory Auditors was also able to assess the certification - pursuant to and for the
purposes of Article 154-bis, paragraph 2 TUF - of the Company's acts and notices, disclosed to themarket, relating to financial information, including interim reports.
6.2 Independent Auditors’ reports
The Independent Auditors Deloitte & Touche S.p.A. rendered on March 27, 2024, with an unqualified
opinion requiring no supplemental disclosures, their report pursuant to Article 14 of Legislative
Decree. 39/2010, certifying that the separate financial statements and the Group's consolidated
financial statements at December 31, 2023 provide a true and fair view of the Company's financial
position at December 31, 2023, results of operations and cash flows for the year ended in accordancewith International Financial Reporting Standards as adopted by the European Union as well as themeasures issued in implementation of Article 9 of Legislative Decree no. 38/05.
Additionally, the Independent Auditors performed the procedures outlined in Auditing Standard (SAItaly) no. 700B in order to express an opinion on whether the consolidated financial statements comply
with the provisions of the Delegated Regulations.
In the opinion of the Independent Auditors, the separate financial statements and consolidated
financial statements at December 31, 2023 have been prepared in XHTML format and the consolidated
financial statements have been marked in all significant aspects in accordance with the provisions of
the Delegated Regulations.
The Independent Auditors also certified that the Report on Operations and certain specific informationin the Report on Corporate Governance and Ownership Structure are consistent with the separate
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financial statements of Datalogic S.p.A. and the consolidated financial statements of the Group at
December 31, 2023, and are prepared in accordance with legal regulations.
With regard to the statement in Article 14, paragraph 2, letter e) of Legislative Decree 39/10, issued
on the basis of the knowledge and understanding of the company and its related context gained in thecourse of the audit, the Independent Auditors have nothing to report.
Regarding the consolidated financial statements, the Independent Auditors identified as key aspectsof the audit the estimation of adjustments to revenue for discounts and returns and the impairment
test on the goodwill of the Datalogic Business CGU.
6.3 Activities of the Board as the Internal Control and Audit Committee.
In accordance with the provisions of Article 19 of Legislative Decree no. 39/2010, the Board of
Statutory Auditors, identified as the "Internal Control and Audit Committee", carried out the required
supervisory activity also on the operations of the Independent Auditors. Furthermore, the Board of
Statutory Auditors, taking into account the CONSOB notices, facilitated effective and timely
communication with the Independent Auditors to exchange pertinent information conducive to the
execution of their respective responsibilities, aligning with Article 150, paragraph 3 TUF.
During the year, the Board of Statutory Auditors in fulfilling the role of the "Internal Control and Audit
Committee":a) informed the Board of Directors of the outcome of the statutory audit and forwarded to the Boardof Directors the additional report referred to in Article 11 of the European Regulations;b) monitored the financial reporting process;c) monitored the effectiveness of the company’s internal quality control and risk management
systems for financial reporting without violating its independence;d) monitored the statutory audit process of the separate financial statements and consolidated
financial statements;e) reviewed and monitored the independence of the Independent Auditors, particularly with regard
to the adequacy of the provision of non-audit services to the audited entity.
The Board of Statutory Auditors - having obtained the report on the independence of the Independent
Auditors pursuant to Article 6 of Regulation (EU) No. 2014/537 - considers that there are no criticalaspects regarding their independence or causes of incompatibility, in accordance with Articles 10, 10bis, and 17 of Legislative Decree No. 39/2010 and its implementing provisions.
6.4 Exchange of relevant data and information with the Independent Auditors
To fulfill its supervisory role, the Board of Statutory Auditors routinely exchanged information with the
Independent Auditors during audit activities, involving various verification processes such as data and6
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document acquisition. To share information related to the control activities, the Board of Statutory
Auditors frequently held productive meetings with Deloitte in accordance with Article 150 TUF. At
these meetings, the Independent Auditors did not highlight any facts deemed reprehensible orirregularities such as to require reporting under Article 155, paragraph 2 TUF, and the Board of
Statutory Auditors also informed the Independent Auditors about its activities and reported on
relevant and significant facts of which it was aware. The Board of Statutory Auditors also assessed,
through direct assessments and information from the Independent Auditors Deloitte & Touche S.p.A.,
compliance with IAS/IFRS standards, as well as with rules and laws regarding the formation and layoutof the separate financial statements, the consolidated financial statements, and the report on
operations.
6.5 Additional fees to the Independent Auditors
In addition to the audit of the separate and consolidated financial statements, limited audit of the halfyear report, assessment of the proper maintenance of accounting records and the correct recognitionof operations in the accounting records, and the certification related to the consolidated non-financial
statement (the assignment of which was granted jointly with the audit appointment), in 2023 Datalogic
S.r.l. and Datalogic IP Tech S.r.l. granted additional assignments to Deloitte & Touche S.p.A. for minor,
immaterial amounts.
In 2023 and up to the date of the report, there have been no appointments of individuals related to
the Independent Auditors.
7) Supervisory activities on the consolidated non-financial statement and diversity information
The Consolidated Non-Financial Statement of Datalogic is a separate report from the Report on
Operations, as required by Article 5, paragraph 3, letter b) of Legislative Decree No. 254/2016, and ismade available on the Company website.
Based on the Company's indication, the NFS was prepared in accordance with the requirements of the2021 update of the "GRI Sustainability Reporting Standards" defined by the Global Reporting Initiative(GRI). The content reported on by the Company was determined through a materiality analysis
updated in 2023, which identified significant aspects for both the Group and its stakeholders.
The Board of Statutory Auditors supervised the adequacy of the procedures, processes and structures,
implemented by the Company, to oversee the preparation, reporting, measurement and presentationof non-financial results and information. In particular, during the year, the Board held several meetings
with the heads of the corporate department in charge of non-financial reporting and attended themeetings of the Control, Risks, Remuneration and Appointments Committee and the Board of
Directors to review and approve the materiality analysis for the purpose of non-financial reporting and
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the 2023 Consolidated Non-Financial Statement of Datalogic S.p.A., prepared pursuant to Leg. Decr.
254/2016. The Board also exchanged information with the Independent Auditors on the non-financial
results and information prepared by the Company, prior to the approval of the aforementioned
Report.
On March 27, 2024, the Independent Auditors also rendered their report on the consolidated nonfinancial statement, in compliance with Article 3, paragraph 10, of Legislative Decree no. 254/2016
and Article 5 of CONSOB Regulation no. 20267/2018, certifying that the consolidated non-financial
statement of the Datalogic Group for the year ended December 31, 2023 was prepared in all material
respects, and no evidence suggesting otherwise came to their attention.
8) Supervisory activities on actual implementation of corporate governance rules
According to the 2023 Report on Corporate Governance and Ownership Structure, published on the
Company website, the Company since November 12, 2020 has adhered to the Corporate Governance
Code for Listed Companies, promoted by the Corporate Governance Committee and applicable as ofJanuary 1, 2021. The Board of Statutory Auditors, as required by Article 2403 of the Italian Civil Codeand Article 149 TUF, monitored the implementation of the corporate governance rules adopted by theCompany in accordance with the Corporate Governance Code and on the basis of the assessments
conducted, participation in the meetings of the Control, Risks, Remuneration and Appointments
Committee and the Board of Directors, as well as meetings held with the head of the Corporate Affairs
and Compliance department, concludes that the Company during the year effectively and correctly
applied the corporate governance rules and recommendations of the Corporate Governance Code towhich it claims to adhere, with particular regard to companies with concentrated ownership, excluding"large" companies.
9) Supervisory activities on relations with subsidiaries and parent companies
The Board of Statutory Auditors supervised the adequacy of the set of provisions issued by theCompany to its subsidiaries, pursuant to Article 114, paragraph 2, of Legislative Decree 58/98 anddeems them suitable for the purpose of fulfilling the reporting requirements of law. During the year,
the Board of Statutory Auditors also supervised the activities carried out by the subsidiaries throughthe acquisition of information from the Chairman, the Chief Executive Officer and the Manager
responsible for the preparation of the Company’s financial reports, the activities of Internal Audit,
which conducts assessments on the subsidiaries. The Board also conducted its assessments directlywith the Statutory Auditors of the Italian subsidiaries. These are also subject to audits under Law
262/2005 carried out by the Internal Audit department.
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As of the date of preparation of this report, the Board of Statutory Auditors has not received any
communications from the boards of statutory auditors of subsidiaries, parents, affiliates, or investees
containing any findings to be reported.
10)

Supervisory activities on related-party transactions

Since 2010, the Company has adopted a procedure for the management of related-party transactions
to ensure both their compliance with legal and regulatory standards, fairness criteria (both substantive
and procedural), transparency in decision-making, and adherence to transparency and public
information provisions. This procedure was most recently updated by the Board of Directors at its
meeting on June 23, 2021.
The Board of Directors, the Control, Risks, Remuneration and Appointments Committee in its capacity
as the Related Parties Committee, and the Board of Statutory Auditors receive a quarterly report ontransactions with Italian or foreign related parties.
Based on the information gathered during its supervisory activities, the Board of Statutory Auditors
did not come across or receive any notifications from the Independent Auditors or the Internal Audit
department regarding any abnormal or unusual transactions carried out with third parties, relatedparties, or intercompany, as outlined by CONSOB Communication of April 6, 2001. Intercompany andrelated-party transactions were conducted in the ordinary course of business and at normal market
conditions, and related information was disclosed in the Financial Report at December 31, 2023.
Related-party transactions refer mainly to trade and property transactions and tax consolidation.
Hence, the Board of Statutory Auditors has not identified any violations resulting from inadequate
information flows related to related-party transactions, nor any issues arising from such transactions
during its supervisory activities. The Board of Statutory Auditors also believes that the information
provided by the Directors in the 2023 Annual Financial Report regarding intergroup transactions andrelated-party transactions is adequate.
11)

Omissions and censurable facts detected. Reports or complaints.

During the year, the Board of Statutory Auditors did not come across any omissions, irregularities, orreprehensible facts during their supervisory and control activities that would warrant inclusion in thisreport or report to the Supervisory Authority. Additionally, in 2023, no reports, grievances, orcomplaints pursuant to Article 2408 of the Italian Civil Code were submitted to the Board of Statutory
Auditors.
During the year, there were no omissions or delays by the directors under Article 2406 of the Italian
Civil Code.
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12)

Opinions rendered

In 2023, the Board of Statutory Auditors issued, in accordance with the law (including regulatory andself-regulatory), the envisaged favourable opinions on:the proposed allocation of the maximum overall fees to the members of the Board of Directors
resolved by the Shareholders' Meeting on April 27, 2023;

the variable compensation of the Executive Chairman and the Chief Executive Officer, including
pursuant to Article 2389 of the Italian Civil Code;the remuneration of the Head of Internal Audit and the adequacy of the resources allocated tocarry out responsibilities;the adoption of Datalogic's Remuneration Policy;the correct application of the criteria and assessment procedures adopted by the Board of
Directors to assess the independence of its members qualified as such upon their appointment;the satisfaction of the independence requirements, also based on the criteria set forth in the
Corporate Governance Code with regard to directors, also assessed with positive outcomes during
self-assessment;the consistency and adequacy of the impairment procedure used by the Company;

the proper application of the accounting standards and their consistency for the purposes ofpreparing the consolidated financial statements;

13)

the approval of the Audit Plan.
Self-Assessment

The Board of Statutory Auditors, also in 2023, carried out the self-assessment pursuant to the "Rulesof Conduct for the Board of Statutory Auditors of Listed Companies" issued by the Italian Associationof Public Accountants and Accounting Professionals. The process conducted showed a positive
assessment of the Board both as a whole and with particular regard to the independence of thesupervisory body, its size, and its operation.
As part of its self-assessment activities, the Board also found that all of its members continued to meetthe legal requirements to hold office, including also those of independence pursuant to Article 148,
third paragraph, TUF and the recommendations of the Corporate Governance Code.

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14)

Proposals on the separate financial statements and their approval, and matters within theremit of the Board of Statutory Auditors

The income, equity and financial position of the Company that is submitted to you through the draft(separate) financial statements for the year ended December 31, 2023, shows a net profit for theperiod of € 17,087,000 and equity, including net profit for the year, of € 340,492,000.
The Group's consolidated financial statements for the same year show a profit of € 9,486,000 andequity, including net profit for the year, of € 411,131,000. Both the draft separate financial statements
and the consolidated financial statements have been prepared on a going concern basis, without any
deviations in the application of accounting principles and policies. Furthermore, they have beencertified by the Independent Auditors without any remarks or requests for information.
Based on its assessments, the Board of Statutory Auditors has concluded that there are no issues thatwould impede the approval of the draft separate financial statements at December 31, 2023, alongwith the Report on Operations. Similarly, there are no comments on the consolidated financial
statements, nor are there any objections to the proposed resolution to allocate profit.
Lastly, based on the supervisory and control activities conducted, the Board of Statutory Auditors
concludes that there are no grounds to exercise the power to make proposals to the Shareholders'Meeting, as per Article 153, paragraph 2 TUF.
Lippo di Calderara, March 27, 2024
The Board of Statutory Auditors
Diana Rizzo - Chair
Elena Lancellotti - Standing Auditor
Roberto Santagostino - Standing Auditor

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Datalogic S.p.A.   219

Datalogic Headquarter
Via Candini, 240012 Lippo di Calderara di Reno
(BO) - Italy
Tel. +39 051 3147011
Fax +39 051 3147205
www.datalogic.com