Datalogic

Interim / Quarterly Report • Aug 2, 2024

2023

Consolidated Half-Year Financial Report June 30, 2024

DATALOGIC GROUP 1

TABLE OF CONTENTS

GROUP STRUCTURE	3
COMPOSITION OF CORPORATE BODIES	4
REPORT ON OPERATIONS	5
CONSOLIDATED STATEMENTS	16
Consolidated Statement of Financial Position
Consolidated Income Statement Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Changes in Equity

EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENTS 23

Information on the Statement of Financial Position

Information on the Income Statement

ANNEXES

• ⋅ Certification by the Manager responsible for the preparation of the Company's financial reports
• ⋅ Consolidation scope
• ⋅ Reconciliation of Alternative Performance Measures
• ⋅ Restatement 2023

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.

Consolidated Half-Year Financial Report at June 30, 2024

COMPOSITION OF CORPORATE BODIES

Board of Directors (1)

Romano Volta Executive Chairman (2) Valentina Volta Chief Executive Officer (2) Angelo Manaresi Independent Director Chiara Giovannucci Orlandi Independent Director Filippo Maria Volta Non-Executive Director Vera Negri Zamagni Independent Director Valentina Beatrice Manfredi Independent Director

Board of Statutory Auditors (3)

Diana Rizzo Chair Elena Lancellotti Standing Auditor Roberto Santagostino Standing Auditor

Giulia De Martino Alternate Auditor Eugenio Burani Alternate Auditor Patrizia Cornale Alternate Auditor

Control, Risks, Remuneration, Appointments and Sustainability Committee

Angelo Manaresi Chairman Chiara Giovannucci Orlandi Independent Director Vera Negri Zamagni Independent Director

Independent Auditors (4) Deloitte & Touche S.p.A.

(1) The Board of Directors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2026.

(2) Legal representative before third parties.

• (3) The Board of Statutory Auditors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2024.
• (4) Deloitte & Touche S.p.A. were appointed Independent Auditors for the nine-year period from 2019 to 2027 by the Shareholders' Meeting held on April 30, 2019 and will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2027.

on Operations

Report

Consolidated Half-Year Financial Report at June 30, 2024

Report on Operations

DATALOGIC GROUP 5

REPORT ON OPERATIONS

FOREWORD

This Consolidated Half-Year Financial Report at June 30, 2024 was prepared in accordance with Article 154-ter of the TUF (Consolidated Law on Finance) and was drawn up in compliance with the International Accounting Standards (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 explanatory 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 production of 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.

PERIOD HIGHLIGHTS

The following table summarises the Datalogic Group's key income and financial results at June 30, 2024 versus the same period of the prior year.

The income statement figures at June 30, 2023 have been restated, under IFRS 5, following the transfer of control of Informatics Holdings, Inc. and the resulting reclassification of its operating results as results from discontinued operations and, under IAS 1, following the reclassification of certain commercial costs as a reduction of revenue (details are found in Annex 4 of this document):

	30.06.2024	% on Revenue	30.06.2023 Restated	% on Revenue	Change	% chg.	% chg. net FX
Revenue	244,630	100.0%	288,946	100.0%	(44,316)	-15.3%	-15.0%
Adjusted EBITDA	15,456	6.3%	31,483	10.9%	(16,027)	-50.9%	-51.6%
Adjusted EBIT	61	0.0%	15,525	5.4%	(15,464)	-99.6%	n.a.
EBIT	(3,959)	-1.6%	11,201	3.9%	(15,160)	n.a.	n.a.
Profit/(Loss) for the period	9,265	3.8%	12,121	4.2%	(2,856)	-23.6%	-25.8%
Net financial position (NFP)	(11,805)		(25,101)		13,296

The Group closed first half 2024 with sales Revenue of €244.6 million, down by 15.3% (-15.0% net FX) versus €288.9 million in first half 2023.

Sales from new products (Vitality Index) in first half 2024 accounted for 13.4% of revenue (15.2% in second quarter 2024), up from 6.5% in first half 2023.

Adjusted EBITDA came to €15.5 million, down from €31.5 million in the same period of the prior year, accounting for 6.3% of sales (10.9% in first half 2023).

Adjusted EBIT came to €0.1 million (€15.5 million in first half 2023).

Net profit for the period amounted to €9.3 million, accounting for 3.8% of revenue (€12.1 million at June 30, 2023 or 4.2% of revenue), thanks to the proceeds from the sale of Informatics Holdings, Inc.

Net Financial Debt at June 30, 2024 stood at €11.8 million, an improvement of €23.5 million versus December 31, 2023 and of €13.3 million versus June 30, 2023.

REVENUE PERFORMANCE

The breakdown by geographical area of Group revenue for the period, versus the same period of the prior year, is shown in the table below:

	30.06.2024	% 30.06.2023		%	Change	% chg.	% chg.
			Restated				net FX
Italy	24,969	10.2%	30,669	10.6%	(5,700)	-18.6%	-18.6%
EMEAI (excluding Italy)	114,696	46.9%	132,858	46.0%	(18,162)	-13.7%	-13.8%
Total EMEAI	139,665	57.1%	163,527	56.6%	(23,862)	-14.6%	-14.7%
Americas	76,494	31.3%	83,119	28.8%	(6,626)	-8.0%	-8.1%
APAC	28,471	11.6%	42,299	14.6%	(13,829)	-32.7%	-30.0%
Total revenue	244,630	100.0%	288,946	100.0%	(44,316)	-15.3%	-15.0%

EMEAI was down by 14.6% in the first half of the year, with Italy dropping by 18.6%. Americas fell less by 8.0%, while APAC declined more (-32.7%, -30.0% net FX) versus the same period of the prior year.

To better align with its strategic goals and prioritise product and solution offerings, the Group identifies two Market Segments, which feature distinct sales models, customers with varying purchasing needs, and different stakeholders: Data Capture and Industrial Automation.

The following is a breakdown of Group revenue split up by these market segments:

	30.06.2024	%	30.06.2023 Restated	%	Change	% chg.	% chg. net FX
Data Capture	159,532	65.2%	177,909	61.6%	(18,377)	-10.3%	-10.0%
Industrial Automation	85,098	34.8%	111,037	38.4%	(25,940)	-23.4%	-23.0%
Total revenue	244,630	100.0%	288,946	100.0%	(44,317)	-15.3%	-15.0%

The Data Capture segment, with 65.2% of sales (61.6% at June 30, 2023), dropped by 10.3% versus the same period of the prior year, with declines in EMEAI (-18.0%) and APAC (-12.1%), partly offset by growth in Americas (+3.9%).

The Industrial Automation segment lost 23.4%, declining across all geographies, APAC in particular.

ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)

Management uses certain performance measures, not identified as accounting measures under IFRS (NON-GAAP 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 of December 3, 2015, refer only to the performance of the period related to this Consolidated Half-Year Financial Report and the comparison periods. The performance measures must be considered as supplementary and do not supersede 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 reorganisation, write-downs of fixed assets, ancillary expense from acquisitions of businesses or companies or their disposals, including amortisation resulting from the recognition of purchase price allocation, and any other event deemed by Management not to represent current business activity.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): profit/(loss) for the period from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense) and income tax.
• Adjusted EBITDA: profit/(loss) for the period 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 period from continuing operations before financials (including foreign exchange income and expense) and income tax.
• Adjusted EBIT or Operating Result: profit/(loss) for the period 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, expenditure in tangible and intangible fixed assets (excluding fixed assets under right of use recognised during the period 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 that cannot be directly attributed to the company's business operations.

GROUP RECLASSIFIED INCOME RESULTS

The following table shows the main items of the income statement for the period versus the same period of the prior year, the results of which have been restated under IFRS 5 and IAS 1, and for details of which reference is made to Annex 4 of this document:

	30.06.2024		30.06.2023 Restated		Change	% chg.
Revenue	244,630	100.0%	288,946	100.0%	(44,316)	-15.3%
Cost of goods sold	(145,133)	-59.3%	(169,317)	-58.6%	24,184	-14.3%
Gross Operating Margin	99,497	40.7%	119,629	41.4%	(20,132)	-16.8%
Research and Development expense	(31,044)	-12.7%	(29,835)	-10.3%	(1,209)	4.1%
Distribution expense	(44,199)	-18.1%	(48,782)	-16.9%	4,583	-9.4%
Administrative and General expense	(23,962)	-9.8%	(25,282)	-8.7%	1,320	-5.2%
Other (expense) income	(231)	-0.1%	(205)	-0.1%	(26)	12.7%
Total operating costs and other expense	(99,436)	-40.6%	(104,104)	-36.0%	4,668	-4.5%
Adjusted EBIT	61	0.0%	15,525	5.4%	(15,464)	-99.6%
Special Items - Other (Expense) and Income	(1,678)	-0.7%	(1,947)	-0.7%	269	-13.8%
Special Items - D&A from acquisitions	(2,342)	-1.0%	(2,377)	-0.8%	35	-1.5%
EBIT	(3,959)	-1.6%	11,201	3.9%	(15,160)	n.a.
Financials	16,832	6.9%	2,115	0.7%	14,717	695.8%
Foreign exchange gains/(losses)	(1,930)	-0.8%	(147)	-0.1%	(1,783)	1212.9%
EBT	10,943	4.5%	13,169	4.6%	(2,226)	-16.9%
Tax	(439)	-0.2%	(2,124)	-0.7%	1,685	-79.3%
Profit/(Loss) for the period from continuing operations	10,504	4.3%	11,045	3.8%	(541)	-4.9%
Profit/(Loss) for the period from discontinued operations	(1,239)	-0.5%	1,076	0.4%	(2,315)	n.a.
Profit/(Loss) for the period	9,265	3.8%	12,121	4.2%	(2,856)	-23.6%
EBIT	(3,959)	-1.6%	11,201	3.9%	(15,160)	n.a.
Special Items - Other (Expense) and Income	1,678	0.7%	1,947	0.7%	(269)	-13.8%
Special Items - D&A from acquisitions	2,342	1.0%	2,377	0.8%	(35)	-1.5%
Depreciation Tang. Fixed Assets and Rights of Use	7,315	3.0%	8,116	2.8%	(801)	-9.9%
Amortisation Intang. Fixed Assets	8,080	3.3%	7,842	2.7%	238	3.0%
Adjusted EBITDA	15,456	6.3%	31,483	10.9%	(16,027)	-50.9%

The Gross Operating Margin reached €99.5 million versus €119.6 million at June 30, 2023, down slightly as a percentage of sales, standing at 40.7% versus 41.4% in the same period of 2023, negatively impacted by the decline in volume and price/ product mix, partly offset by an improvement in productivity, while still showing a gradual sharp improvement in the second quarter.

Operating costs and other expense amounted to €99.4 million (€104.1 million at June 30, 2023), down in absolute value, even though increasing as a percentage of sales, due to lower sales volumes, rising from 36.0% to 40.6%.

Research and Development expense, amounting to €31.0 million, increased by 4.1% versus June 30, 2023. Total monetary costs in R&D, i.e., before capitalisation and net of amortisation and depreciation (R&D Cash Out), amounted

to €32.2 million (€30.6 million in the same period of the prior year), with a percentage of sales of 13.2% (10.6% in the same period of 2023).

Distribution expense amounted to €44.2 million and was down from €48.8 million in the same period of 2023, while the percentage of revenue increased to 18.1% from 16.9% in the first half of the prior year.

Administrative and General Expense, amounting to €24.0 million at June 30, 2024, decreased by 5.2% versus the same period of 2023; as a percentage of sales, the item increased from 8.7% to 9.8%.

Financials closed at a positive €14.9 million, although affected by the adverse trend in FX differences, and improved by €12.9 million versus June 30, 2023, thanks mainly to the proceeds from the sale of Informatics Holdings, Inc.

INCOME RESULTS OF THE SECOND QUARTER

The following statement summarises the Datalogic Group's key income and financial results of second quarter 2024 versus the same period of the prior year.

Quarter ended
	30.06.2024	% on	30.06.2023	% on	Change	% chg.	% chg.
		Revenue	Restated	Revenue			net FX
Revenue	133,310	100.0%	143,460	100.0%	(10,150)	-7.1%	-7.2%
Adjusted EBITDA	13,330	10.0%	18,547	12.9%	(5,217)	-28.1%	-28.4%
Adjusted EBIT	5,522	4.1%	10,643	7.4%	(5,121)	-48.1%	-48.8%
EBIT	3,233	2.4%	7,770	5.4%	(4,537)	-58.4%	-59.3%
Profit/(Loss) for the period	3,219	2.4%	8,939	6.2%	(5,720)	-64.0%	-64.7%

REVENUE PERFORMANCE

The breakdown by geographical area of Group revenue in the second quarter, versus the same period of the prior year, is shown in the table below:

Quarter ended
	30.06.2024	%	30.06.2023	%	Change	% chg.	% chg. net
							FX
Italy	11,450	8.6%	15,295	10.7%	(3,845)	-25.1%	-25.1%
EMEAI (excluding Italy)	60,564	45.4%	61,850	43.1%	(1,285)	-2.1%	-2.3%
Total EMEAI	72,014	54.0%	77,145	53.8%	(5,131)	-6.7%	-6.8%
Americas	44,536	33.4%	45,288	31.6%	(752)	-1.7%	-2.8%
APAC	16,760	12.6%	21,027	14.7%	(4,268)	-20.3%	-17.9%
Total revenue	133,310	100.0%	143,460	100.0%	(10,150)	-7.1%	-7.2%

The following is a breakdown of Group revenue by market segment:

Quarter ended
	30.06.2024	%	30.06.2023	%	Change	%	% chg. net FX
Data Capture	91,711	68.8%	86,966	60.6%	4,746	5.5%	5.3%
Industrial Automation	41,599	31.2%	56,494	39.4%	(14,895)	-26.4%	-26.3%
Total revenue	133,310	100.0%	143,460	100.0%	(10,150)	-7.1%	-7.2%

Data Capture

The Data Capture segment, accounting for 68.8% of sales (60.6% in second quarter 2023), shows a 5.5% increase versus the same period of 2023, driven by Americas, which reported a notable 18.8% double-digit growth.

Industrial Automation

The Industrial Automation segment recorded a 26.4% decline in second quarter 2024, affected by all geographical areas.

GROUP RECLASSIFIED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD

The following table shows the main financial and equity items at June 30, 2024 versus December 31, 2023.

	30.06.2024	31.12.2023	Change	% chg.
Intangible fixed assets	86,786	88,845	(2,059)	-2.3%
Goodwill	196,986	205,352	(8,366)	-4.1%
Tangible fixed assets and rights of use	102,112	105,486	(3,374)	-3.2%
Financial assets and investments in associates	3,719	5,418	(1,699)	-31.4%
Other fixed assets	58,484	58,103	381	0.7%
Fixed Assets	448,087	463,204	(15,117)	-3.3%
Trade receivables	77,260	52,093	25,167	48.3%
Trade payables	(103,485)	(83,515)	(19,970)	23.9%
Inventory	100,075	102,462	(2,387)	-2.3%
Net Trade Working Capital	73,850	71,040	2,810	4.0%
Other current assets	29,826	31,115	(1,289)	-4.1%
Other liabilities and provisions for current risks	(66,530)	(61,624)	(4,906)	8.0%
Net Working Capital	37,146	40,531	(3,385)	-8.4%
Other non-current liabilities	(45,290)	(46,327)	1,037	-2.2%
Post-employment benefits	(5,748)	(5,759)	11	-0.2%
Provisions for non-current risks	(3,480)	(5,197)	1,717	-33.0%
Net Invested Capital	430,715	446,452	(15,737)	-3.5%
Equity	(418,910)	(411,131)	(7,779)	1.9%
Net financial position (NFP)	(11,805)	(35,321)	23,516	-66.6%

Net Invested Capital, at €430.7 million (€446.5 million at December 31, 2023), decreased by €15.7 million, attributable mainly to Fixed Assets.

Fixed Assets, amounting to €448.1 million (€463.2 million at December 31, 2023), decreased by €15.1 million, attributable mainly to a reduction in Goodwill following the sale of Informatics Holdings, Inc. as well as amortisation and depreciation for the period of Intangible and Tangible Fixed Assets.

Net Trade Working Capital at June 30, 2024 amounted to €73.9 million and increased by €2.8 million versus December 31, 2023. As a percentage of sales, it increased from 13.2% at December 31, 2023 to 15.6% at June 30, 2024.

The Net Financial Position at June 30, 2024 stood at a negative €11.8 million (a negative €25.1 million at June 30, 2023 and at €35.3 million at December 31, 2023). The cash flows that led to the change in the consolidated Net Financial Position from the beginning of the period are detailed below, versus the same period of the prior year.

	30.06.2024	30.06.2023	Change
Net financial position (Financial debt) beginning of period	(35,321)	(42,007)	6,686
Adjusted EBITDA	15,456	33,011	(17,555)
Change in net trade working capital	(2,810)	27,190	(30,000)
Other changes in net working capital and special items	(1,014)	(9,016)	8,002
Net expenditure	(9,905)	(12,971)	3,066
Tax paid	(2,637)	(4,605)	1,968
Net financial income (expense)	(2,919)	(1,850)	(1,069)
Cash Flow from Operations	(3,829)	31,760	(35,589)
Dividend distribution	-	(17,034)	17,034
Sale (Purchase) of treasury shares	-	(5,314)	5,314
Disinvestments (investments) of financial assets	-	3,823	(3,823)
Other changes	27,345	3,672	23,673
Change in Net Financial Position	23,516	16,906	6,610
Net financial position (financial debt) end of period	(11,805)	(25,101)	13,296

Cash Flow from Operations at June 30, 2024 stood at a negative €3.8 million. The negative change is attributable mainly to the cash absorption of Net Working Capital, related to the seasonality of revenue in the six months, and the decrease in Adjusted EBITDA. However, financial debt, at €11.8 million, improved by €13.3 million thanks to the proceeds from the sale of Informatics Holdings, Inc. shown under "Other changes".

At June 30, 2024, the Net Financial Debt is shown below:

	30.06.2024	31.12.2023
A. Cash funds	61,485	70,629
B. Cash equivalents	25,000	-
C. Other current financial assets	-	-
D. Liquid assets (A) + (B) + (C)	86,485	70,629
E. Current financial debt	5,043	5,421
E1. of which lease payables	3,878	3,863
F. Current portion of non-current financial debt	13,842	14,428
G. Current Financial Debt (E) + (F)	18,885	19,849
H. Current Net Financial Debt (Financial Position) (G) - (D)	(67,600)	(50,780)
I. Non-current financial debt	79,405	86,101
I1. of which lease payables	7,447	7,767
J. Debt instruments	-	-
K. Trade and other non-current payables	-	-
L. Non-Current Financial Debt (I) + (J) + (K)	79,405	86,101
M. Total Net Financial Debt/(Net Financial Position) (H) + (L)	11,805	35,321

At June 30, 2024, the Group had outstanding financial credit lines of approximately €275.0 million, of which approximately €186.0 million committed. Undrawn and readily available financial lines amounted to €189.0 million.

SIGNIFICANT EVENTS IN THE PERIOD

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 tailored to small and medium-sized companies, headquartered in Plano (Texas, USA). The transaction involved the sale by Datalogic S.p.A. of its stake to a company controlled by the U.S. private equity fund Renovo Capital LLC.

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 structure of Datalogic IP Tech S.r.l. changed as follows: 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%.

RECLASSIFICATION OF INCOME STATEMENT ITEMS

Starting from the first quarter of the current year, to provide a clearer picture of Group performance, certain costs shown in distribution expense have been classified as a reduction in revenue.

Comparative figures have been consistently restated; reference is made to the table in Annex 4 of this document for details of the amounts.

GOVERNANCE

On April 30, 2024, the Shareholders' Meeting approved the Financial Statements at December 31, 2023, and reviewed the Group's Consolidated Financial Statements at December 31, 2023, and resolved to distribute an ordinary unit dividend, gross of tax, of 12 Euro cents per share, for a maximum total amount of €6.4 million.

The same Meeting also resolved to:

• appoint the Board of Directors for the years 2024-2026, with the election of 6 members from "List No. 1" submitted by the shareholder Hydra S.p.A., which holds a 64.85% stake in the Company's share capital and a 78.65% stake in the Company's voting share capital (37,900,000 ordinary shares), and the election of 1 member from "List No. 2" submitted by a grouping of shareholders holding a total 2.64% stake in the share capital;
• appoint Romano Volta as Chairman of the Board of Directors, until the date of the Shareholders' Meeting convened to approve the financial statements for the year ending December 31, 2026;
• set, pursuant to and in accordance with Article 20 of the Bylaws, in the amount of €2,500,000.00, 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 (2024) and for the portion of the following year (2025), until the date of approval of the Company's 2024 financial statements, leaving to the discretion of the Board itself any decision regarding the allocation of the above maximum global amount among the different Directors;
• in implementation of the provisions of Article 123-ter, Legislative Decree No. 58/1998 and 84-quater of CONSOB Regulation No. 11971 of May 14, 1999, approve the 2024 remuneration policy set out in section one of the Report on Remuneration Policy and on Compensation Paid and vote in favour of compensation paid in 2023 set out in section two of the Report;
• revoke, for the unexecuted portion at the date of the Shareholders' Meeting, the authorisation to the Board of Directors to purchase treasury shares resolved by the Shareholders' Meeting on April 27, 2023, and authorise 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 to purchase the

Company's treasury shares, on one or more occasions, for a period not exceeding 18 months from the date of this resolution.

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 and Group'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 a technical point of view, which Datalogic products and which business partner relationships could potentially be subject to sanctions. Following entry into force of the IX European sanctions package, the Group companies have suspended 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.

EVENTS AFTER THE END OF THE PERIOD

Nothing to report.

BUSINESS OUTLOOK

To date, the Group's outlook for the full year 2024 sees sales broadly in line with the prior year. Growth in the Data Capture segment is expected to offset the weakness in the Industrial Automation segment, where recovery timing remains uncertain. Operating margins are expected to match last year's levels, and debt is projected to be lower than last year. The Company will also maintain strong investment levels in research and development to support its innovation strategy, while focusing on ongoing efficiency improvements and cost optimisation.

SECONDARY LOCATIONS

The Parent Company has no secondary locations.

Chairman of the Board of Directors (Romano Volta)

Consolidated Half-Year Financial Report at June 30, 2024

ù

DATALOGIC GROUP 16

Consolidated Statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS (Euro/000)	Notes	30.06.2024	31.12.2023
A) Non-current assets (1+2+3+4+5+6+7)		448,087	463,204
1) Tangible fixed assets		91,097	94,040
Land	1	11,749	12,597
Buildings	1	51,356	51,520
Other assets	1	25,253	26,892
Fixed assets under construction and advances	1	2,739	3,031
2) Intangible fixed assets		283,772	294,197
Goodwill	2	196,986	205,352
Development costs	2	44,890	42,034
Other	2	32,326	36,075
Fixed assets under construction and advances	2	9,570	10,736
3) Right of use fixed assets	3	11,015	11,446
4) Investments in associates	4	670	640
5) Non-current financial assets	6	3,049	4,778
6) Trade and other non-current receivables	7	1,417	784
7) Deferred tax assets	12	57,067	57,319
B) Current assets (8+9+10+11)		293,646	256,299
8) Inventory		100,075	102,462
Raw and ancillary materials and consumables	8	47,553	51,002
Work in progress and semi-finished products	8	21,849	18,690
Finished products and goods	8	30,673	32,770
9) Trade and other current receivables		96,755	70,546
Trade receivables	7	77,260	52,093
of which associates	7	1,477	1,346
of which related parties	7	12	8
Other receivables, accrued income and deferred expense	7	19,495	18,453
10) Tax receivables	9	10,331	12,662
11) Cash and cash equivalents	5	86,485	70,629
Total Assets (A+B)		741,733	719,503

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

LIABILITIES (Euro/000)	Notes	30.06.2024	31.12.2023
A) Total Equity (1+2+3+4+5+6)	10	418,910	411,131
1) Share capital	10	30,392	30,392
2) Reserves	10	103,200	98,212
3) Retained earnings (losses carried forward)	10	273,083	269,731
4) Profit (loss) for the period	10	8,874	9,859
5) Group Equity	10	415,549	408,194
Profit (loss) for the period attributable to non-controlling interests	10	391	(373)
Share capital attributable to non-controlling interests	10	2,970	3,310
6) Equity attributable to non-controlling interests		3,361	2,937
B) Non-current liabilities (7+8+9+10+11)		133,923	143,384
7) Non-current financial payables	11	79,405	86,101
8) Deferred tax liabilities	12	26,115	26,334
9) Provisions for post-employment and retirement benefits	13	5,748	5,759
10) Provisions for non-current risks and charges	14	3,480	5,197
11) Other liabilities	15	19,175	19,993
C) Current liabilities (12+13+14+15)		188,900	164,988
12) Trade and other payables		161,352	133,030
Trade payables	15	103,485	83,515
of which associates	15	337	92
of which related parties	15	197	21
Other payables, accrued expense and deferred income	15	57,867	49,515
13) Tax payables	9	3,631	9,388
14) Provisions for current risks and charges	14	5,032	2,721
15) Current financial payables	11	18,885	19,849
Total Liabilities (A+B+C)		741,733	719,503

CONSOLIDATED INCOME STATEMENT

(Euro/000)	Notes	30.06.2024	30.06.2023
1) Revenue	16	244,630	Restated 288,946
Revenue from sale of products		225,587	270,473
Revenue from services		19,043	18,473
of which related parties and associates		3,759	3,709
2) Cost of goods sold	17	145,213	169,420
of which related parties and associates		161	157
Gross Operating Margin (1-2)		99,417	119,526
3) Other revenue	18	1,562	1,049
4) Research and development expense	17	32,248	30,863
of which related parties and associates		359	361
5) Distribution expense	17	45,100	49,613
of which related parties and associates		111	93
6) Administrative and general expense	17	25,797	27,644
of which related parties and associates		131	98
of which Parent Company		-	-
7) Other operating expense	17	1,793	1,254
Total operating costs		104,938	109,374
EBIT		(3,959)	11,201
8) Financial income	19	29,766	16,594
9) Financial expense	19	14,864	14,626
Financials (8-9)		14,902	1,968
Profit/(Loss) before tax from continuing operations		10,943	13,169
Income tax	20	439	2,124
Profit/(Loss) for the period from continuing operations		10,504	11,045
Basic earnings/(loss) per share from continuing operations (Euro)	22	0.19	0.19
Diluted earnings/(loss) per share from continuing operations (Euro)	22	0.19	0.19
Net Profit/(Loss) from discontinued operations	21	(1,239)	1,076
Net Profit/(Loss) for the period		9,265	12,121
Basic earnings/(loss) per share (€)	22	0.17	0.21
Diluted earnings/(loss) per share (€)	22	0.17	0.21
Attributable to:
Shareholders of the Parent		8,874	12,111
Non-controlling interests		391	10

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Euro/000)	Notes	30.06.2024	30.06.2023
Net Profit/(Loss) for the period		9,265	12,121
Other items of the statement of comprehensive income:
Other items of the statement of comprehensive income that will later be
reclassified to Profit/(Loss) for the period
Profit/(Loss) on cash flow hedges (CFH)	10	31	41
Profit (Loss) from the translation of financial statements of foreign companies	10	7,470	(5,437)
Reclassification of recognised foreign exchange differences due to change in the consolidation scope	10	(2,473)
Total other items of the statement of comprehensive income that will later		5,028	(5,396)
be reclassified to Profit/(Loss) for the period
Other items of the statement of comprehensive income that will not later be reclassified to Profit/(Loss) for the period
Actuarial gains (losses) on defined-benefit plans		-	-
of which tax effect		-	-
Profit/(Loss) from financial assets at FVOCI	10	(7)	29
of which tax effect		(0)	(1)
Total other items of the statement of comprehensive income that will not		(7)	29
later be reclassified to Profit/(Loss) for the period
Total profit/(loss) of the statement of comprehensive income		5,021	(5,367)
Net Profit/(Loss) for the period		14,286	6,754
Attributable to:
Shareholders of the Parent		13,862	6,982
Non-controlling interests		424	(228)

CONSOLIDATED STATEMENT OF CASH FLOWS

(Euro/000)	Notes	30.06.2024	30.06.2023
Profit/(Loss) before tax		9,704	14,603
Depreciation of tangible fixed assets and write-downs	1	5,245	6,105
Amortisation of intangible fixed assets and write-downs	2	10,419	10,229
Depreciation of right of use fixed assets	3	2,107	2,097
Losses (Gains) from sale of fixed assets	17, 18	(655)	(88)
Change in provisions for risks and charges	14	608	(228)
Change in provision for obsolescence	8	974	832
Financials	19	(14,902)	(1,932)
Monetary effect foreign exchange gains (losses)		(825)	(689)
Other non-monetary changes		(59)	(11)
Cash flow generated (absorbed) from operations before changes in working
capital		12,616	30,918
Change in trade receivables	7	(26,153)	24,272
Change in final inventory	8	566	4,299
Change in trade payables	15	19,867	(2,999)
Change in other current assets	7	(1,033)	(3,401)
Change in other current liabilities	15	8,026	707
Change in other non-current assets	6	(623)	(55)
Change in other non-current liabilities	5	(554)	(160)
Cash flow generated (absorbed) from operations after changes in working		12,711	53,582
capital
Change in tax assets and liabilities		(3,193)	(4,142)
Interest paid		(1,606)	(1,723)
Interest collected		358	197
Cash flow generated (absorbed) from operations (A)		8,269	47,914
Increase in intangible fixed assets	2	(9,018)	(9,612)
Increase in tangible fixed assets	1	(2,764)	(3,584)
Decrease in tangible fixed assets	1	2,005	225
Change in investments and current and non-current financial assets	5	(149)	3,823
Change in consolidation scope	21	26,605
Cash flow generated (absorbed) from investments (B)		16,680	(9,148)
Payment of financial payables	11	(7,035)	(56,189)
New financial payables	11	-	25,000
Other changes in financial payables	11	68	(1,452)
Payments of financial liabilities from leases		(2,295)	(2,248)
(Purchase) sale of treasury shares	10	-	(5,314)
Dividend payment	10	-	(17,034)
Effect of change in cash and cash funds		170	(942)
Cash flow generated (absorbed) from financing activities (C)		(9,092)	(58,179)
Net increase (decrease) in cash (A+B+C)		15,857	(19,413)
Net cash and cash equivalents at beginning of period		70,628	107,482
Net cash and cash equivalents at end of period		86,485	88,069

Consolidated Half-Year Financial Report at June 30, 2024

CONSOLIDATED CHANGES IN EQUITY

Description	Share capital	Share premium res.	Treasury shares	Translation reserve	Other Reserves	Retained earnings	Profit (Loss) of Group	Group Equity	Profit (Loss) of non-controlling interests	Share capital and reserves of non controlling interests	Equity attributable to non-controlling interests	Profit (Loss)	Equity
01.01.2024	30,392	111,779	(41,962)	27,482	913	269,732	9,859	408,195	(373)	3,310	2,937	9,486	411,131
Allocation of profit	-	-	-	-	-	9,859	(9,859)	-	373	(373)	-	(9,486)	-
Dividends	-	-	-	-	-	(6,438)	-	(6,438)	-	-	-	-	(6,438)
Treasury shares	-	-	-	-	-	-	-	-	-	-	-	-	-
Share-based incentive plan	-	-	-	-	-	-	-	-	-	-	-	-	-
Other changes	-	-	-	-	-	(70)	-	(70)	-	-	-	-	(70)
Profit/(Loss) for the period	-	-	-	-	-	-	8,874	8,874	391	-	391	9,265	9,265
Other items of the statement of comprehensive income	-	-	-	4,964	24	-	-	4,988	-	33	33	-	5,021
Total comprehensive Profit (Loss)	-	-	-	4,964	24	-	8,874	13,862	391	33	424	9,265	14,286
30.06.2024	30,392	111,779	(41,962)	32,446	937	273,083	8,874	415,549	391	2,970	3,361	9,265	418,910

	Share	Share	Treasury	Translation	Other	Retained	Profit	Group	Profit (Loss)	Share capital and	Equity attributable	Profit	Equity
Description	capital	premium res.	shares	reserve	Reserves	earnings	(Loss) of Group	Equity	of non-controlling interests	reserves of non controlling interests	to non-controlling interests	(Loss)
01.01.2023	30,392	111,779	(22,191)	39,331	3,347	255,840	29,550	448,048	576	2,943	3,519	30,126	451,567
Allocation of
profit	-	-	-	-	-	29,550	(29,550)	-	(576)	576	-	(30,126)	-
Dividends	-	-	-	-	-	(17,034)	-	(17,034)	-	-	-	-	(17,034)
Treasury
shares	-	-	(5,314)	-	-	-	-	(5,314)	-	-	-	-	(5,314)
Share-based
incentive plan	-	-	-	-	420	-	-	420	-	-	-	-	420
Other changes	-	-	-	-	671	(577)	-	94	-	-	-	-	94
Profit/(Loss)
for the period	-	-	-	-	-	-	12,111	12,111	10	-	10	12,121	12,121
Other items of the
statement of	-	-	-	(5,199)	70	-	-	(5,129)	-	(238)	(238)	-	(5,367)
comprehensive income
Total comprehensive
Profit (Loss)	-	-	-	(5,199)	70	-	12,111	6,982	10	(238)	(228)	12,121	6,754
30.06.2023	30,392	111,779	(27,505)	34,132	4,508	267,779	12,111	433,196	10	3,280	3,290	12,121	436,486

Consolidated Half-Year Financial Report at June 30, 2024

Explanatory Notes

DATALOGIC GROUP 23

EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENTS

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 Half-Year Financial Report at June 30, 2024 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 Half-Year Financial Report at June 30, 2024 of the Datalogic Group was authorised by resolution of the Board of Directors dated August 2, 2024.

BASIS OF PRESENTATION

1) General criteria

This Consolidated Half-Year Financial Report was prepared pursuant to Article 154-ter of Legislative Decree no. 58 of February 24, 1998 (TUF) as subsequently amended and supplemented, as well as to the CONSOB Issuer Regulation. The criteria for the preparation of the Statement are in accordance with the requirements of IAS 34 "Interim Financial Reporting", providing the summary information notes required by the above standard, supplemented if the case to provide a greater level of information where deemed necessary.

This Consolidated Half-Year Financial Report should therefore be read in conjunction with the Consolidated Annual Financial Report at December 31, 2023, prepared in accordance with IFRS accounting standards adopted by the European Union, approved by the Board of Directors on March 14, 2024, and available in the Investor Relations section of the Group's website (www.datalogic.com).

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, 2023, in particular:

• current and non-current assets, as well as current and non-current liabilities are shown separately in the Statement of Financial Position. Current assets, which include cash and cash equivalents, are those intended to be realised, 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 shown based on grouping by function, as this classification was deemed more explanatory for understanding the Group's results of operations;

• the Statement of Comprehensive Income presents the items that determine profit/(loss) for the period and the costs and revenue recognised directly under equity;
• the Statement of Cash Flows is presented using the "indirect method".

This Consolidated Half-Year Financial Report is drawn up in Euro thousands, which is the Group's "functional" and "presentation" currency as envisaged by IAS 21.

3) IFRS accounting standards, amendments and interpretations applied by the Group as from January 1, 2024

The following IFRS international accounting standards, amendments and interpretations have been applied for the first time by the Group as of January 1, 2024:

• 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 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 adoption of these amendments had no effects on the Group's consolidated financial statements.
• On September 22, 2022, the IASB published "Amendments to IFRS 16 Leases: Lease Liability in a Sale and 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 adoption of these amendments had no effects on the Group's consolidated financial statements.
• 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 understand the effect of such arrangements on the entity's exposure to liquidity risk. The adoption of these amendments had no effects on the Group's consolidated financial statements.

4) IFRS accounting standards, amendments and interpretations not yet endorsed by the European Union

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 30, 2024, the IASB published "Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7″. The document addresses several issues identified in the post-implementation review of IFRS 9, particularly concerning the accounting treatment of financial assets with returns that fluctuate based on the achievement of ESG targets, such as green bonds. Specifically, the amendments aim to:

• clarify the classification of financial assets with variable returns and tied to environmental, social and corporate governance (ESG) targets and the criteria to be used for the SPPI test assessment;
• determine that the date of settlement of liabilities through electronic payment systems is the date on which the liability is settled. However, an entity is permitted to adopt an accounting policy to allow a financial liability to be derecognised before delivering cash on the settlement date under certain specific conditions.

With these amendments, the IASB has also introduced additional disclosure requirements for investments in equity instruments designated to FVOCI in particular.

The amendments will apply from the financial statements of financial years beginning on or after January 1, 2026. The Directors do not expect any material effect on the Group's consolidated financial statements from the adoption of this amendment.

• On May 9, 2024, the IASB published a new standard IFRS 19 Subsidiaries without Public Accountability: Disclosures. The new standard introduces certain simplifications with regard to the disclosures required by other IAS-IFRS standards. This standard can be applied by an entity that meets the following main criteria:

  • It is a subsidiary company;

• It has not issued equity or debt instruments listed on a market and is not in the process of issuing them;

• Has its own parent company that prepares consolidated financial statements in accordance with IFRS.

The new standard will take effect on January 1, 2027, 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 April 9, 2024, the IASB published a new standard IFRS 18 Presentation and Disclosure in Financial Statements, which will supersede IAS 1 Presentation of Financial Statements. The new standard aims to improve the presentation of key reporting formats and introduces important changes with regard to the income statement format. Specifically, the new standard requires the following:
  • Classify revenue and expense into three new categories (operating section, investment section, and financial section), in addition to the tax and discontinued operations categories already in the income statement;
  • Present two new sub-totals, operating profit/loss and profit/loss before interest and tax (i.e. EBIT).

The new standard also:

• Requires more information on performance measures defined by management;
• introduces new criteria for information aggregation and disaggregation; and,
• introduces a number of changes to the format of the statement of cash flows, including a requirement to use operating profit/loss as the starting point for the presentation of the statement of cash flows prepared under the indirect method and the elimination of certain classification options for certain items that currently exist (such as interest paid, interest received, dividends paid and dividends received).

The new standard will take effect on January 1, 2027, but early application is permitted. The directors will evaluate the possible effects of the introduction of this new standard on the Group's consolidated financial statements in the coming months.

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 this is not feasible, how to determine the exchange rate to be used and the disclosure to be made in the notes to the

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 the adoption of this amendment.

5) Use of estimates and assumptions

The preparation of the Consolidated Half-Year Financial Report requires the Directors to apply accounting standards and methods that, in certain cases, are based on valuations and estimates based on historical experience and assumptions that are evaluated from time to time according to the specific cases. The application of these estimates 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 the assumptions and conditions on which the estimates are based.

6) Consolidation scope

This Consolidated Half-Year Financial Report at June 30, 2024 includes the income statement and balance sheet data of Datalogic S.p.A. and all the companies that it directly or indirectly controls.

On March 7, 2024, the sale of 100% of the subsidiary Informatics Holdings Inc. was finalised, followed by the deconsolidation of such entity as of that date. The company's results of operations up to the date of deconsolidation were presented in the income statement in a single line as net profit/(loss) from discontinued operations, as Informatics Holdings Inc. represented an operating segment of the Group and corporate goodwill a separate Cash-Generating Unit.

The list of investments included in the consolidation area appears in Annex 2, with an indication of the methodology used.

7) Translation criteria of foreign currency financial statements

The exchange rates used to determine the value in Euro of financial statements denominated in foreign currency of subsidiaries (currency for 1 Euro) are shown hereunder:

Currency (ISO Code)	Quantity of currency for 1 Euro
	June 2024	June 2024	December 2023	June 2023
	Actual exchange rate	Average exchange rate for the period	Actual exchange rate	Average exchange rate for the period
US Dollar (USD)	1.07	1.08	1.11	1.08
British Pound Sterling (GBP)	0.85	0.85	0.87	0.88
Swedish Krona (SEK)	11.36	11.39	11.10	11.33
Singapore Dollar (SGD)	1.45	1.46	1.46	1.44
Japanese Yen (JPY)	171.94	164.46	156.33	145.76
Australian Dollar (AUD)	1.61	1.64	1.63	1.60
Hong Kong Dollar (HKD)	8.36	8.45	8.63	8.47
Chinese Renminbi (CNY)	7.77	7.80	7.85	7.49
Brazilian Real (BRL)	5.89	5.49	5.36	5.48
Mexican Peso (MXN)	19.57	18.51	18.72	19.65
Hungarian Forint (HUF)	395.10	389.76	382.80	380.85
Czech Crown (CZK)	25.03	25.01	24.72	23.69

SEGMENT DISCLOSURE

An operating segment is a part of an entity engaged in business activities that generate revenue and incur costs. Its operating results are reviewed regularly at the highest level of decision-making to allocate resources and assess performance. A geographical segment pertains to a set of activities that offers products or services within a specific economic environment, which is subject to distinct risks and returns compared to segments operating in other economic environments. It should be noted that as of the date of these interim consolidated financial statements, as a result of the sale of Informatics Holdings Inc., no operating segments have been identified that meet all the requirements of IFRS 8 for separate disclosure.

In accordance with IFRS 8, information on geographical segments is shown below. Specifically:

• revenue from external customers allocated to geographical areas based on which Group management monitors and analyses performance;
• non-current assets other than financial instruments and deferred tax assets broken down according to the same principles used for revenue.

	30.06.2024	%	30.06.2023 Restated	%	Change	% chg.	% chg. net FX
Italy	24,969	10.2%	30,669	10.6%	(5,700)	-18.6%	-18.6%
EMEAI (excluding Italy)	114,696	46.9%	132,858	46.0%	(18,162)	-13.7%	-13.8%
Total EMEAI	139,665	57.1%	163,527	56.6%	(23,862)	-14.6%	-14.7%
Americas	76,494	31.3%	83,119	28.8%	(6,626)	-8.0%	-8.1%
APAC	28,471	11.6%	42,299	14.6%	(13,829)	-32.7%	-30.0%
Total revenue	244,630	100.0%	288,946	100.0%	(44,316)	-15.3%	-15.0%

The income information at June 30, 2024 and June 30, 2023 is the following:

The asset information related to operating segments at June 30, 2024 and at December 31, 2023 is the following.

	30.06.2024	31.12.2023	Change
Italy	135,206	137,99	-2,784
EMEAI (excluding Italy)	48,678	50,64	-1,963
Americas	189,513	200,056	-10,543
APAC	17,624	17,204	420
Total non-current assets	391,021	405,889	-14,869

Comparative data includes Informatics balances.

INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS

Note 1. Tangible fixed assets

Tangible fixed assets at June 30, 2024 amounted to €91,097 thousand. During the period, net expenditure of €1,440 thousand and depreciation of €5,245 thousand was recognised, while exchange rate effects closed with a positive €1,022 thousand. The breakdown of the item at June 30, 2024 and at December 31, 2023 is shown below.

	30.06.2024	31.12.2023	Change
Land	11,749	12,597	(848)
Buildings	51,356	51,520	(164)
Other assets	25,253	26,892	(1,639)
Fixed assets under construction and advances	2,739	3,031	(292)
Total	91,097	94,040	(2,943)

The "Other assets" item at June 30, 2024 includes the following categories: industrial equipment and moulds (€11,486 thousand), plant and machinery (€6,399 thousand), office furniture and machines (€3,954 thousand), generic plant related to buildings (€2,164 thousand), lightweight constructions (€223 thousand), commercial equipment and demo rooms (€586 thousand), leasehold improvements (€264 thousand), and motor vehicles (€177 thousand).

The balance of "Fixed assets under construction and advances", equal to €2,739 thousand, is composed primarily of moulds under construction and equipment and production lines built in house, and of improvements to owned buildings.

Note 2. Intangible fixed assets

Intangible fixed assets at June 30, 2024 amounted to €283,772 thousand. During the period, net expenditure of €9,119 thousand and amortisation of €10,419 thousand was recognised, while exchange rate effects closed with a positive €5,626 thousand. The breakdown of the item at June 30, 2024 and at December 31, 2023 is shown below:

	30.06.2024	31.12.2023	Change
Goodwill	196,986	205,352	(8,366)
Development costs	44,890	42,034	2,856
Other	32,326	36,075	(3,749)
Fixed assets under construction and advances	9,570	10,736	(1,166)
Total	283,772	294,197	(10,425)

Goodwill

"Goodwill" amounted to €196,986 thousand and decreased by €8,366 thousand, of which €13,662 thousand due to the deconsolidation of Informatics Holdings Inc., while FX effects came to a positive €5,296 thousand.

	30.06.2024	31.12.2023	Change
Datalogic CGU	196,986	191,690	5,296
Informatics CGU	-	13,662	(13,662)
Total	196,986	205,352	(8,366)

The estimated recoverable value of the Cash Generating Unit (CGU) associated with the goodwill of the Datalogic CGU being evaluated is the corresponding value in use, calculated by discounting at a rate equal to the weighted average cost of capital or "WACC" the future operating cash flows expected to be generated by the CGU based on the Discounted Cash Flow method.

At June 30, 2024, the Directors assessed that the assumptions used for the impairment test of the aforementioned CGU at December 31, 2023, and the associated long-term plan, remained valid. Consequently, they did not identify any impairment indicators for the recorded Goodwill. In making this assessment, the Directors took account of the actual results at June 30, 2024 and expected for the full year 2024, which are basically in line with the amounts considered for the purpose of the impairment test prepared when preparing the consolidated financial statements at December 31, 2023.

Development costs, Other intangible fixed assets and fixed assets under construction and advances

"Development costs", amounting to €44,890 thousand at June 30, 2024 (€42,034 thousand at December 31, 2023), consists of product development projects. The change stems mainly from expenditure made during the period.

"Other", amounting to €32,326 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, and software licences as detailed below:

	30.06.2024	31.12.2023	Change
Patents	2,853	3,681	(827)
Know-how	11,456	12,533	(1,077)
Customer portfolio	10,493	10,943	(450)
Licences	636	880	(244)
Software	6,888	8,038	(1,150)
Total	32,326	36,075	(3,749)

"Fixed assets under construction and advances", amounting to €9,570 thousand (€10,736 thousand at December 31, 2023), is attributable mainly to the capitalisation of costs for product development projects currently under way.

Note 3. Right of use fixed assets

Net positive changes for €1,668 thousand and depreciation for €2,107 thousand were recognised during the period. The breakdown of the item at June 30, 2024 and at December 31, 2023 is shown below.

	30.06.2024	31.12.2023	Change
Buildings	8,334	9,181	(847)
Vehicles	2,523	2,122	401
Office equipment	158	143	15
Total	11,015	11,446	(431)

Note 4. Investments in associates

Non-controlling investments held by the Group, details of which can be found in Annex 2, amounted to €670 thousand at June 30, 2024 (€640 thousand 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 amortised cost	Financial assets at FV through profit and loss	Financial assets at FV through OCI	30.06.2024
Non-current financial assets	1,417	2,957	92	4,466
Non-current financial assets and investments	-	2,957	92	3,049
Other receivables	1,417	-	-	1,417
Current financial assets	183,240	-	-	183,240
Trade receivables	77,260	-	-	77,260
Other receivables	19,495	-	-	19,495
Cash and cash equivalents	86,485	-	-	86,485
Total	184,657	2,957	92	187,706

	Financial assets at amortised cost	Financial assets at FV 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
Current financial assets	141,175	-	-	141,175
Trade receivables	52,093	-	-	52,093
Other receivables	18,453	-	-	18,453
Cash and cash equivalents	70,629	-	-	70,629
Total	144,014	2,624	99	146,737

"Cash and cash equivalents" amounted to €86,485 thousand. Details are found in the Net Financial Debt schedule in the Report on Operations.

Financial liabilities

	Derivatives	Financial liabilities at amortised cost	30.06.2024
Non-current financial liabilities	-	98,580	98,580
Financial payables	-	79,405	79,405
Other payables	-	19,175	19,175
Current financial liabilities	-	180,237	180,237
Trade payables	-	103,485	103,485
Other payables	-	57,867	57,867
Current financial payables	-	18,885	18,885
Total	-	278,817	278,817

	Derivatives	Financial liabilities at amortised cost	31.12.2023
Non-current financial liabilities	-	106,094	106,094
Financial payables	-	86,101	86,101
Other payables	-	19,993	19,993
Current financial liabilities	-	152,879	152,879
Trade payables	-	83,515	83,515
Other payables	-	49,515	49,515
Current financial payables	-	19,849	19,849
Total	-	258,973	258,973

The fair value of financial assets and financial liabilities is determined according to methods classifiable in the various 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 quotations recorded on active markets.

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 3	30.06.2024
Non-current financial assets and investments	92	-	2,957	3,049
Total	92	-	2,957	3,049

Note 6. Financial assets and non-current financial receivables

Financial assets include the following:

	30.06.2024	31.12.2023	Change
Non-current financial assets	3,049	4,778	(1,729)
Total	3,049	4,778	(1,729)

Non-current financial assets amounted to €3,049 thousand. The main change refers to the write-down of an investment with uncertain recoverability.

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

	2024	2023
At January 1	4,778	8,119
Acquisitions (Disposals)	185	(56)
Write-downs	(2,028)	-
Gains (Losses) recognised in OCI	(7)	29
Gains/(Losses) recognised in the income statement	121	6
Exchange rate adjustments		(13)
At June 30	3,049	8,085

Note 7. Trade and other receivables

The breakdown of the item at June 30, 2024 and at December 31, 2023 is shown below:

	30.06.2024	31.12.2023	Change
Trade receivables	71,557	46,065	25,491
Contract assets - Invoices to be issued	5,654	6,145	(490)
Bad debt provisions	(1,440)	(1,471)	31
Net trade receivables	75,771	50,739	25,032
Receivables from associates	1,477	1,346	131
Receivables from related parties	12	8	4
Sub-total - Trade receivables	77,260	52,093	25,167
Other receivables - current accrued income and deferred expense	19,495	18,453	1,042
Other receivables - non-current accrued income and deferred expense	1,417	784	633
Sub-total - Other receivables - accrued income and deferred expense	20,912	19,237	1,675
Less: non-current portion	1,417	784	633
Trade and other receivables - current portion	96,755	70,546	26,209

Trade receivables

"Trade receivables" amounted to €77,260 thousand, increasing by €25,167 thousand versus December 31, 2023. At June 30, 2024, trade receivables factored without recourse amounted to €30,509 thousand (€30,218 thousand at December 31, 2023). Trade receivables from related parties and associates arise from commercial transactions carried out at normal market conditions.

Other receivables - accrued income and deferred expense

The details of "Other receivables - accrued income and deferred expense" are shown below.

	30.06.2024	31.12.2023	Change
Other current receivables	3,573	3,232	341
Other non-current receivables	1,417	784	633
VAT receivable	13,049	11,889	1,160
Accrued income and deferred expense	2,873	3,332	(459)
Total	20,912	19,237	1,675

The "VAT receivable" of €13,049 thousand refers to normal commercial transactions.

The "Accrued income and deferred expense" item is composed mainly of the recognition of insurance contracts and hardware and software licenses.

Note 8. Inventory

At June 30, 2024, inventory totalled €100,075 thousand, decreasing by €2,387 thousand during the period, including €1,940 thousand from the deconsolidation of Informatics.

	30.06.2024	31.12.2023	Change
Raw and ancillary materials and consumables	47,553	51,002	(3,449)
Work in progress and semi-finished products	21,849	18,690	3,159
Finished products and goods	30,673	32,770	(2,097)
Total	100,075	102,462	(2,387)

Inventory is shown net of an obsolescence provision totalling €16,385 thousand at June 30, 2024 (€15,482 thousand at December 31, 2023).

Note 9. Tax receivables and payables

	30.06.2024	31.12.2023	Change
Tax receivables	10,331	12,662	(2,331)
Tax payables	(3,631)	(9,388)	5,757
Total	6,700	3,274	3,426

At June 30, 2024, the net balance of "Tax Receivables and Payables" was positive and equal to €6,700 thousand versus a positive 3,274 thousand at December 31, 2023, marking a positive change of €3,426 thousand.

LIABILITIES AND EQUITY

Note 10. Equity

The composition of Equity at June 30, 2024 is shown below.

	30.06.2024	31.12.2023	Change
Share capital	30,392	30,392	-
Share premium reserve	111,779	111,779	-
Treasury shares held in portfolio	(41,962)	(41,962)	-
Share capital and reserves	100,209	100,209	-
Translation reserve	32,446	27,482	4,964
Other reserves	937	913	24
Retained earnings	273,083	269,731	3,352
Profit for the period	8,874	9,859	(985)
Total Group equity	415,549	408,194	7,355
Profit (loss) for the period attributable to non-controlling interests	391	(373)	764
Share capital attributable to non-controlling interests	2,970	3,310	(340)
Total Group equity	3,361	2,937	424
Total consolidated equity	418,910	411,131	7,779

Share capital

At June 30, 2024, the share capital of €30,392 thousand represents the fully subscribed and paid-up share capital 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 date amounted to 53,646,491.

Other Reserves

At June 30, 2024, there was no change in the "Reserve for treasury shares held in portfolio".

The "Translation reserve" shows an increase of € 4,964 thousand, as a result mainly of the performance of the USD, the functional currency of some of the Group's major investees.

At June 30, 2024, "Other reserves" amounted to €937 thousand (€913 thousand at December 31, 2023).

Note 11. Financial payables

"Financial payables" at June 30, 2024 amounted to €98,290 thousand, decreasing by €7,660 thousand as detailed below.

	30.06.2024	31.12.2023	Change
Bank loans	85,801	92,762	(6,961)
Financial payables from leases	11,325	11,630	(305)
Payables to factoring companies	731	592	139
Other financial payables	68	817	(749)
Bank overdrafts	365	149	216
Total	98,290	105,950	(7,660)

The change in "Bank loans" for the period is attributable to repayment of loans totaling €7,035 thousand.

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

	30.06.2024	31.12.2023	Change
Non-current financial payables	79,405	86,101	(6,696)
Current financial payables	18,885	19,849	(964)
Total	98,290	105,950	(7,660)

At June 30, 2024, the Group had outstanding credit lines of approximately € 275 million, of which approximately € 189.0 million undrawn.

Covenants

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

Loan	Company	Covenants	Frequency	Reference financial statements
RCF	Datalogic S.p.A.	NFP/EBITDA 4.5x; 4.0x *	half-year	Consolidated
Roller Coaster	Datalogic S.p.A.	NFP/EBITDA 3.0x	half-year	Consolidated

* 4.5x at June and 4.0x at December

At June 30, 2024, all covenants had been met.

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.

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 business combinations carried out by the Group.

	30.06.2024	31.12.2023	Change
Deferred tax assets	57,067	57,319	(252)
Deferred tax liabilities	(26,115)	(26,334)	219
Net deferred tax	30,952	30,985	(33)

Deferred tax assets amounted to €57,067 thousand and included foreign tax receivables attributable mainly to the subsidiary Datalogic USA Inc., deemed recoverable in light of the subsidiary's expected earnings prospects in the coming years, corroborated by the performance of this market in the first half of the year.

The Provision for deferred tax liabilities at June 30, 2024 amounted to €26,115 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.

Note 13. Provisions for post-employment and retirement benefits

The breakdown of changes in "Provisions for post-employment and retirement benefits" at June 30, 2024 and June 30, 2023 is shown below:

	2024	2023
At January 1	5,759	6,163
Amount allocated in the period	1,023	1,292
Utilisations	(839)	(1,134)
Receivable from INPS	(266)	(391)
Other movements	62	-
Exchange rate adjustments	9	(5)
At June 30	5,748	5,925

Note 14. Provisions for risks and charges

"Provisions for risks and charges" at June 30, 2024, amounted to €8,512 thousand (€7,918 thousand at December 31, 2023), represented by the best estimate of the contingent liabilities to which the Group is exposed in relation to contractual obligations for product warranties 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.

	31.12.2023	Increases	(Utilisations) (Releases)	Change in consolidation scope	Foreign exchange difference	30.06.2024
Product warranty provision	5,845	-	(305)	(14)	-	5,526
Provision for staff incentive	1,510	1,013	(53)	-	26	2,496
and retention plans
Other provisions	563	-	(73)	-	-	489
Total	7,918	1,013	(431)	(14)	26	8,512

The "Product warranty provision" covers the estimated cost of repairing products sold up to June 30, 2024 and covered by a warranty period; said provision amounted to €5,526 thousand (of which €3,156 thousand long-term).

"Provision for staff incentive and retention plans" refers to the estimated bonuses to be paid to staff based on longterm incentive and retention plans accrued at June 30, 2024.

"Other provisions" at June 30, 2024 amounted to €489 thousand and consisted mainly of provisions for supplementary agent's indemnity and for contingent liabilities of a fiscal and labour law nature.

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

	30.06.2024	31.12.2023	Change
Provisions for risks and charges, current portion	5,032	2,721	2,311
Provisions for risks and charges, non-current portion	3,480	5,197	(1,717)
Total	8,512	7,918	594

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

	30.06.2024	31.12.2023	Change
Trade payables	100,009	78,859	21,150
Contractual liabilities - customer advances	2,942	4,543	(1,601)
Trade payables	102,951	83,402	19,549
Payables to associates	337	92	245
Payables to related parties	197	21	176
Total trade payables	103,485	83,515	19,970
Other current payables	39,290	28,310	10,980
Current accrued expense and deferred income	18,577	21,204	(2,627)
Non-current accrued expense and deferred income	19,175	19,993	(818)
Total Other payables - accrued expense and deferred income	77,042	69,507	7,535
Less: non-current portion	19,175	19,993	(818)
Current portion	161,352	133,029	28,323

Trade payables

"Trade payables" amounted to €103,485 thousand, increasing by €19,970 thousand versus the end of the prior year.

Other current payables

	30.06.2024	31.12.2023	Change
Payables to employees	21,536	18,418	3,118
Payables to welfare and social security entities	6,598	6,834	(236)
Other payables	8,915	2,070	6,845
VAT payables	2,241	988	1,253
Total	39,290	28,310	10,980

"Other current payables", amounting to €39,290 thousand at June 30, 2024, 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". The increase from the prior year is attributable mainly to the dividend resolved but not yet distributed amounting to € 6,438 thousand by the Parent Company.

Accrued expense and deferred income

"Accrued expense and deferred income", amounting to €37,752 thousand at June 30, 2024 (€41,197 thousand at December 31, 2023), is composed mainly of deferred revenue related to the Ease of Care long-term maintenance contracts.

INFORMATION ON THE INCOME STATEMENT

Note 16. Revenue

Revenue classified by type is shown in the following table:

	30.06.2024	30.06.2023	Change
		Restated
Revenue from sale of products	225,587	270,473	(44,886)
Revenue from services	19,043	18,473	570
Total revenue	244,630	288,946	(44,316)

At June 30, 2024, consolidated net revenue amounted to €244,630 thousand, down by 15.3% versus €288,946 thousand in first half 2023. The Group's revenue, classified by recognition method, is broken down as follows:

Revenue broken down by recognition method	30.06.2024	30.06.2023 Restated	Change
Revenue from sale of goods and services - point in time	207,929	257,641	(49,712)
Revenue from sale of goods and services - over time	36,701	31,305	5,396
Total	244,630	288,946	(44,316)

The Group recognises revenue for the sale of goods and services at a specific point in time when control of the assets 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.

Note 17. Cost of goods sold and operating costs

The following table shows the trends of cost of goods sold and operating costs at June 30, 2024, versus the same period of the prior year, before special items.

	30.06.2024	30.06.2023	Change
		Restated
Cost of goods sold	145,213	169,420	(24,207)
Operating costs	104,938	109,374	(4,436)
Research and development expense	32,248	30,863	1,385
Distribution expense	45,100	49,613	(4,513)
Administrative and General expense	25,797	27,644	(1,848)
Other operating expense	1,793	1,254	539
Total	250,151	278,794	(28,643)

Cost of goods sold

Cost of goods sold at June 30, 2024 was €145,213 thousand. The change is -14.3%, while the percentage of sales deteriorated slightly by 0.8% to 59.4% from 58.6% in the comparison period.

Operating costs

"Operating Costs", totalling €104,938 thousand, decreased by 4.1%; as a percentage of sales, it increased by approximately 5% from 37.9% to 42.9%.

"Research and development expense" at June 30, 2024 amounted to €32,248 thousand, increasing by 4.5% versus the same period of the prior year, accounting for 13.2% of sales (10.7% in the first half of the prior year). The detail items showing the largest percentage increase in relation to sales refer to personnel expense and amortisation/depreciation.

"Distribution expense" amounted to €45,100 thousand, down versus the comparison period (-9.1%). It increases as a percentage of sales from 17.2% to 18.4% as a result of lower personnel costs.

"Administrative and general expense" amounted to €25,797 thousand, decreasing by 6.7% versus first half 2023, while the percentage of sales increased from 9.6% to 10.5%.

"Other operating expense", amounting to € 1,793 thousand, increased versus the comparison period by 43.0% regarding higher deductible non-income tax.

Costs by nature

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

	30.06.2024	30.06.2023	Change
		Restated
Purchases	101,261	123,004	(21,744)
Personnel expense	88,152	90,679	(2,527)
Amortisation, depreciation and write-downs	17,736	18,335	(598)
Goods receipt and shipment expense	9,958	10,600	(642)
Travel and meetings expense	4,213	6,199	(1,986)
EDP expense	3,825	3,602	223
Consumables and R&D material	2,880	3,760	(879)
R&D technical consultancies	2,400	2,665	(265)
Legal, tax and other consulting	2,221	1,963	258
Marketing expense	1,829	2,159	(330)
Utilities	1,443	1,842	(399)
Building expense	1,436	1,322	114
Royalties	1,231	1,165	66
Directors' fees	1,141	785	356
Telephone expense	897	890	7
Expense for plant and machinery and other assets	819	950	(131)
Quality certification expense	779	708	71
Sundry service costs	772	808	(36)
Fees	711	1,094	(382)
Vehicle expense	678	645	33
Repairs and warranty provision accrual	670	627	43
Installations	526	608	(82)
Non-warranty repairs	519	497	22
Insurance	481	618	(137)
Audit fees	430	426	4
Entertainment expense	362	520	(158)
Subcontracted work	303	378	(75)
Recruitment fees	269	541	(272)
Other	2,209	1,407	803
Total cost of goods sold and operating costs	250,151	278,794	(28,643)

Purchasing costs decreased by € 21,744 thousand (-17.7%) versus the comparison period, accounting for approximately 1.2 percentage points less of sales.

Personnel expense of €88,152 thousand (€90,679 thousand in first half 2023) decreased by €2,527 thousand (-2.8%), with the percentage of sales increasing from 31.4% to 36.0%.

The detailed breakdown of personnel expense is as follows:

	30.06.2024	30.06.2023	Change
		Restated
Wages and salaries	65,654	67,733	(2,079)
Social security charges	14,916	14,491	425
Post-employment benefits	1,187	1,290	(103)
Retirement benefits and the like	982	969	13
Other personnel costs	5,413	6,196	(783)
Total	88,152	90,679	(2,527)

"Travel and meetings expense", amounting to €4,213 thousand, decreased by €1,986 thousand versus the same period of the prior year, bringing the percentage of sales to 1.7% versus 2.1% in the comparison period.

Note 18. Other revenue

At June 30, 2024, "Other revenue" amounted to €1,562 thousand, increasing by 48.9% versus €1,049 thousand in first half 2023. Other revenue is broken down as follows:

	30.06.2024	30.06.2023	Change
		Restated
Grants to Research and Development expense	430	372	58
Miscellaneous income and revenue	414	484	(70)
Rents	61	60	1
Gains from disposal of fixed assets	653	113	540
Contingent assets	2	20	(18)
Other	2	-	2
Total	1,562	1,049	513

Note 19. Financials

	30.06.2024	30.06.2023 Restated	Change
Financial income/(expense)	(419)	(1,094)	675
Foreign exchange differences	(1,930)	(147)	(1,783)
Fair Value investments	151	7	144
Bank expense	(757)	(767)	10
Dividends	2	168	(166)
Other	17,855	3,801	14,054
Total net financials	14,902	1,968	12,934

Financials ended with a positive €14,902 thousand, an improvement of €12,934 thousand versus €1,968 thousand recorded in the same period of the prior year, due mainly to the proceeds from the sale of the investment in Informatics Holdings, Inc., net of expense from the sale.

Note 20. Tax

The Group's tax burden at June 30, 2024 is €439 thousand as shown below.

	30.06.2024	30.06.2023 Restated	Change
Pre-tax profit/(loss)	10,943	13,169	(2,226)
Tax income (expense) - for current tax	(1,212)	377	(1,589)
Tax income (expense) - for deferred and prepaid tax	1,651	1,747	(96)
Total Tax	439	2,124	(1,685)
Tax rate	4.0%	16.1%	12.1%

The tax rate at June 30, 2024 reflects the distribution of profit for the period among the various geographical areas in which the Group operates.

Note 21. Profit (Loss) from discontinued operations

As explained earlier, in first quarter 2024, the Group sold its investment in Informatics Holdings Inc.; therefore, in this Half-Year Financial Report, the income situation of Informatics Holdings Inc. up to the date of sale has been classified in the result of discontinued operations.

The business of Informatics Holdings Inc., which specialises in the marketing and distribution of products and solutions for the management of inventory and mobile assets tailored to small and medium-sized companies, was an operating segment until the date of the sale.

The following summarises the income results of Informatics Holdings Inc. for the period 2024 through the date of sale versus those in first half 2023:

(Euro/000)	06.03.2024	30.06.2023
Revenue	2,944	8,249
Cost of goods sold	(766)	(2,581)
Gross Operating Margin	2,178	5,668
Research and development expense	(479)	(1,010)
Distribution expense	(1,101)	(2,448)
Administrative and General expense	(1,849)	(870)
Other (expense) income	236	(29)
Total operating costs	(3,193)	(4,357)
EBIT	(1,015)	1,311
Financials	33	3
Pre-tax profit/(loss)	(982)	1,314
Income tax	(257)	(361)
Profit/(Loss)	(1,239)	953

The base value of the transaction was approximately 34 million USD.

In accordance with the provisions of paragraph 33 of IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations", net cash flows attributable to the operating, investing, and financing activities of discontinued operations

may be presented alternately in the reporting formats or in the notes to the financial statements. The Group has chosen the option of presenting total cash flows in the Consolidated Statement of Cash Flows. Additional information on cash flows from assets held for sale is shown below:

STATEMENT OF CASH FLOWS	30.06.2024	30.06.2023
Cash flow from operations	301	181
Cash flow from investing activities	5,971	(317)
Cash flow from financing activities	(13,776)	(141)
Total	(7,504)	(278)

In 2024, cash receipts from investing activities were due primarily to the sale of the property formerly used by the company at Datalogic USA Inc.

Note 22. Earnings/loss per share

As required by IAS 33, information on data used to calculate the net earning/loss per share and from continuing operations is provided below. Basic EPS is calculated by dividing the result for the period, profit and/or loss, attributable to Shareholders of the Parent Company by the weighted average number of shares outstanding during the reporting period. 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.

Earnings/loss per share from continuing operations

	30.06.2024	30.06.2023 Restated
Profit/(Loss) for the period from continuing operations attributable to the shareholders of the parent	10,113	11,035
Average number of shares (thousands)	53,646	56,683
Basic earnings/(loss) per share from continuing operations	0.19	0.19
Profit/(Loss) for the period from continuing operations attributable to the shareholders of the parent	10,113	11,035
Average number of shares (thousands) - Diluted effect	53,646	57,019
Diluted earnings/(loss) per share from continuing operations	0.19	0.19

Earnings/loss per share

	30.06.2024	30.06.2023 Restated
Profit/(Loss) for the period attributable to the shareholders of the parent	8,874	12,111
Average number of shares (thousands)	53,646	56,683
Basic earnings/(loss) per share	0.17	0.21
Profit/(Loss) for the period attributable to the shareholders of the parent	8,874	12,111
Average number of shares (thousands) - Diluted effect	53,646	57,019
Diluted earnings/(loss) per share	0.17	0.21

TRANSACTIONS WITH SUBSIDIARIES THAT ARE NOT CONSOLIDATED LINE BY LINE, ASSOCIATES AND RELATED PARTIES

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 (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 in accordance with 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 them and 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 the financial statements.

Pursuant to Article 5, paragraph 8, of the CONSOB Regulations, it should be noted that, over the period 01.01.2024 – 30.06.2024, 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.

	Parent Company	Company controlled by Chairman of B.o.D.		Companies not consolidated on a line-by-line basis	30.06.202 4
Investments	-		-	670	670
Trade receivables - other receivables accrued	-		12	1,477	1,489
income and deferred expense
Trade payables - other payables accrued	-		337	197	534
expense and deferred income
Commercial and service costs	-		636	126	762
Trade revenue	-		-	3,759	3,759
Other revenue	-		2	3	5

HEADCOUNT

	30.06.2024	30.06.2023	Change
Datalogic	2,735	2,955	(220)
Informatics	-	69	(69)
Total	2,735	3,024	(289)

The Chairman of the Board of Directors (Romano Volta)

Consolidated Half-Year Financial Report at June 30, 2024

DATALOGIC GROUP 49

Annexes

ANNEXES

ANNEX 1

Certification of the Consolidated Half-Year Financial Report 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:
  2. the adequacy of the characteristics of the Company and
  3. the effective application of the administration and accounting procedures for the preparation of the Consolidated Half-Year Financial Report in the first half of 2024.
• 1. The assessment of the adequacy of the administrative and accounting procedures for the preparation of the Consolidated Half-Year Financial Report at June 30, 2024 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.
• 1. Moreover, the following is certified:
  2. 3.1 The Consolidated Half-Year Financial Report:
     • a) was 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 July 19, 2002;
     • b) corresponds to the books and accounting records;
     • c) provides a true and fair view of the financial position, the results of operations and the cash flows of the Issuer and of the companies included in the consolidation scope.
  3. 3.2 The Consolidated Half-Year Financial Report contains a reliable analysis of all the significant events that took place in the first half of the year and their relevant effect, together with a description of the main risks and uncertainties for the second half of the year. The Consolidated Half-Year Financial Report also includes a reliable analysis of the significant transactions with related parties.

Lippo di Calderara di Reno, August 2, 2024

The Chief Executive Officer

Valentina Volta

The Manager responsible for the preparation of the Company's financial reports

Alessandro D'Aniello

ANNEXES

ANNEX 2

CONSOLIDATION SCOPE

The Consolidated Half-Year Financial Report includes the interim statements of the Parent Company and of the companies 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 Accounting Standards. The companies included in the consolidation scope at June 30, 2024, consolidated on a line-by-line basis, are shown hereunder:

Company name	Registered office	Share capital		Total equity (Euro/thousands)	Profit (loss) for the period (Euro/thousands)	% Ownership
Datalogic S.p.A.	Bologna – Italy	€	30,392,175	368,276	34,198
Datalogic Real Estate France Sas	Courtabeuf Cedex – France	€	2,227,500	4,227	160	100%
Datalogic Real Estate UK Ltd.	Redbourn - United Kingdom of Great Britain	GBP	3,500,000	5,004	140	100%
Datalogic IP Tech S.r.l.	Bologna – Italy	€	100,000	37,162	(10,299)	100%
Datalogic (Shenzhen) Industrial Automation Co. Ltd.	Shenzhen - China	CNY	2,136,696	6,336	(8)	100%
Datalogic Hungary Kft	Balatonboglar - Hungary	HUF	3,000,000	(1,186)	(3,010)	100%
Datalogic S.r.l.	Bologna – Italy	€	10,000,000	122,476	(4,033)	100%
Datalogic Slovakia S.r.o.	Trnava - Slovakia	€	66,388	5,766	(786)	100%
Datalogic USA Inc.	Eugene OR - Usa	USD	100	272,838	3,416	100%
Datalogic do Brazil Ltda.	Sao Paulo - Brazil	BRL	20,257,000	724	(104)	100%
Datalogic Technologia de Mexico S. de R. L. de C.V.	Colonia Cuauhtemoc - Mexico	MXN	0	(491)	(50)	100%
Datalogic Scanning Eastern Europe GmbH	Langen - Germany	€	25,000	3,448	(142)	100%
Datalogic Australia Pty Ltd.	Mount Waverley (Melbourne) - Australia	AUD	3,188,120	1,616	65	100%
Datalogic Vietnam LLC	Vietnam	USD	3,000,000	32,412	1,587	100%
Datalogic Singapore Asia Pacific Pte Ltd.	Singapore	SGD	3	4,212	(19)	100%
Datasensing S.r.l.	Modena - Italy	€	2,500,000	16,123	(2,085)	100%
Datasensing Electronic Components (Tianjin) Ltd.	Tianjin - China	CNY	13,049,982	1,465	89	100%
Datasensing Ibérica, S.A.U.	Barcelona - Spain	€	120,000	1,590	81	100%
Datalogic Japan Co., Ltd.	Tokyo - Japan	JPY	9,913,000	227	91	100%
Suzhou Mobydata Smart System Co. Ltd.	Suzhou, JiangSu - China	CNY	161,224	6,754	799	51%

Companies consolidated by the equity method at June 30, 2024 are as follows:

Company name	Registered office	Share capital		Total equity (Euro/thousands)	Profit (loss) for the period (Euro/thousands)	% Ownership
Datasensor Gmbh (*)	Otterfing - Germany	€	150,000	0	2	30%
CAEN RFID S.r.l. (***)	Viareggio LU - Italy	€	310,000	960	19	20%
R4I S.r.l. (***)	Benevento - Italy	€	131,250	254	15	20%
DL Industrial Automation AB (**)	Malmö, Sweden	SEK	100,000	1,980	692	20%

(*) figures at December 31, 2021

(**) figures at June 30, 2023

(***) figures at December 31, 2023

ANNEXES

ANNEX 3

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)

Below is a reconciliation of EBIT and Adjusted EBIT at June 30, 2024 versus June 30, 2023.

	30.06.2024		30.06.2023 Restated
Adjusted EBIT	61	0.02%	15,525	5.37%
Special Items - Other Expense and (Income)	1,678	0.69%	1,947	0.67%
Special Items - D&A from acquisitions	2,342	0.96%	2,377	0.82%
Total	4,020	1.64%	4,324	1.50%
EBIT	(3,959)	-1.62%	11,201	3.88%

Below is a reconciliation of EBITDA and Adjusted EBITDA at June 30, 2024 versus June 30, 2023.

	30.06.2024		30.06.2023 Restated
Adjusted EBITDA	15,456	6.32%	31,483	10.90%
Cost of goods sold	80	0.03%	103	0.04%
Research and Development expense	276	0.11%	65	0.02%
Distribution expense	451	0.18%	381	0.13%
Administrative and General expense	871	0.36%	1,398	0.48%
Other (expense) income	-	0.00%	-	0.00%
Total	1,678	0.69%	1,947	0.67%
EBITDA	13,778	5.63%	29,536	10.22%

ANNEXES

ANNEX 4

RESTATEMENT 2023

Comparative results at June 30, 2024, have been restated following reclassifications of certain items to ensure full comparability of 2023 results with 2024 results.

Restatement of Income Statement

	30.06.2023	Restatement	30.06.23
(Euro/000)			Restated
1) Revenue	289,942	(996)	288,946
Revenue from sale of products	271,469	(996)	270,473
Revenue from services	18,473		18,473
2) Cost of goods sold	169,420		169,420
Gross Operating Margin (1-2)	120,522	(996)	119,526
3) Other revenue	1,049		1,049
4) Research and development expense	30,863		30,863
5) Distribution expense	50,609	(996)	49,613
6) Administrative and general expense	27,644		27,644
7) Other operating expense	1,254		1,254
Total operating costs	110,370	(996)	109,374
EBIT	11,201	-	11,201
8) Financial income	16,594		16,594
9) Financial expense	14,626		14,626
Financials (8-9)	1,968		1,968
Profit/(Loss) before tax from continuing operations	13,169	-	13,169
Income tax	2,124		2,124
Profit/(Loss) for the period from continuing operations	11,045	-	11,045
Net Profit/(Loss) from discontinued operations	1,076	-	1,076
Net Profit/(Loss) for the period	12,121	-	12,121
Basic earnings/(loss) per share (€)	0.21		0.21
Diluted earnings/(loss) per share (€)	0.21		0.21
Attributable to:
Shareholders of the Parent	12,111		12,111
Non-controlling interests	10		10

Consolidated Half-Year Financial Report at June 30, 2024

DATALOGIC GROUP 55