Datalogic

Investor Presentation • Aug 6, 2020

H1 2020 Results Conference Call

AUGUST 6, 2020

Disclaimer

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

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3

H1 2020 & Q2 2020 Results

Net Debt at €15.4

H1 2020 Results

€ m

The comparative economic data as at 30 June 2019 were restated following the classification of Solution Net Systems Inc. as asset available for sale as required by the accounting standard IFRS 5 1

1

H1 2020 Financial Highlights

• ❑ Effectively navigating through Covid-19 challenges providing operations continuity while protecting our teams.
• ❑ Covid-19 Lockdown significantly impacting EMEAI and Americas Revenue particularly in Q2. Solid signs of recovery in APAC
• ❑ Aggressive cost actions ensured double digit Adj EBITDA and Positive Net result in Q2. Break even in H1 2020. Nimble cost base to boost future profitability
• ❑ Disposal of non-core Solution Net Systems to refocus on strategic business of the Group
• ❑ Continue investing in Innovation during the pandemic with R&D spending* at ca. 15% of Revenue and Vitality index at 22.2 %
• ❑ Adj EBITDA at 8.0% mainly affected by lower volume and price, partially offset by implementation of SG&A cost reduction program.
• ❑ Solid Financial Position during the Covid downturn with Net Financial Debt at €15.4M improving vs H1-2019

^* Including capitalized R&D expenses and excluding D&A

Group Revenues by Segment

❑ Retail: steady performance in Americas despite Lockdown (-4.5%). EMEAI (-18.9%) impacted by Covid and tough comparison due to 2019 FRS

❑ Manufacturing: positive growth in APAC (+31.1%), while EMEAI and North America impacted by the slowdown particularly in the Automotive

❑ T&L: tough base of comparison due the conclusion of important multi-year contracts. EMEAI impacted by Covid with limitations to on-site

• rollouts
• sector
• activities during Lockdown
• ❑ Healthcare: positive growth in North America (+6.7%), offset by the decrease in EMEAI and APAC
• ❑ Channel: overall decrease, especially in EMEAI and US due to the lockdown and destocking

* The comparative data as at 30 June 2019 have been restated to reflect the new allocation of the Group's revenues to geographic areas and business sectors, as redefined following the " New Sales Organization" launched in 2020 and the classification of Solution Net Systems Inc. as asset available for sale according to IFRS 5

€m	H1 2020	H1 2019 Restated*	Var % vs. H1 2019
Retail	90.9	105.4	(13.8%)
Manufacturing	53.4	58.7	(9.0%)
Transportation & Logistics	20.7	32.5	(36.3%)
Healthcare	8.3	9.3	(10.6%)
Channel	49.9	76.7	(35.0%)
Total DL Business	223.2	282.6	(21.0%)
Informatics	7.9	9.3	(15.4%)
Intra division	(0.6)	(0.5)	37.1%
Total Datalogic	230.4	291.4	(20.9%)

Group Revenues by Geography

❑ EMEAI: decline driven by market softness in all end markets as a result of lockdown measures and the phase-out of major fixed

❑ Americas: market softness as a result of lockdown measures. Negative performance in Manufacturing and T&L, following the

• retail scanners roll-outs
• completion of multi-years significant contracts. Growth of Healthcare
• ❑ APAC: double digit growth in Manufacturing, driven by Consumer Electronics in China

€m	H1 2020	H1 2019 Restated*	Var % vs. H1 2019
EMEAI	118.8	159.5	(25.5%)
Americas	76.4	98.5	(22.5%)
APAC	35.2	33.4	5.4%
Total Datalogic	230.4	291.4	(20.9%)

^* The comparative data as at 30 June 2019 have been restated to reflect the new allocation of the Group's revenues to geographic areas and business sectors, as redefined following the " New Sales Organization" launched in 2020 and the classification of Solution Net Systems Inc. as asset available for sale according to IFRS 5

❑ Vitality Index (New products*/ sales) at 22.2% in H1 improving from 20.2% in H12019

❑ R&D spending**, from €32.1 m to €34.2m, reaching 14.8% as a percentage of Revenue compared to

11.0% in the first half of 2019

New Product Launches and Innovation

Fixed Retail Scanner	Hand Held Scanners	Sensors
		Smart Vision
MAGELLAN™ 1500i OEM	PowerScan 95X1-AR With Improved Reading Performance	Sensor

*New Products: products launched in the last 24 months ** Including capitalized R&D expenses and excluding D&A

	▪ Gross Margin at 46.0%, decrease driven by lower
	volumes and price/mix effects
	▪ Operating expenses at €99.5m down 9.7%
	executing cost reduction plans to protect margin:
	✓ Continue investing in R&D expenses during Lockdown
	✓ S&D cost decreased by 14.6% after almost
	25% reduction in Q2 ▪ Adj Ebitda margin solid recovery in Q2 at 10%
	bringing H1 to 8%
	▪ Net Result at break even in H1, after positive Net income in Q2

H1 2020 P&L *

€ m	H1 2020	H12019 Restated	Varia Repo
Revenues	230.4	291.4	(20.9
Gross Margin	105.9	145.5
% on Revenues	46.0%	49.9%	-4.0
Operating expenses	(99.5)	(110.2)
% on Revenues	(43.2%)	(37.8%)	-5.4
Adjusted EBITDA	18.4	45.8
% Adj. Ebitda margin	8.0%	15.7%	-7.8
EBIT	0.3	32.1
% Ebit margin	0.1%	11.0%	-10.9
Net Result	0.0	25.3
% on Revenues	0.0%	8.7%	-8.7

* The comparative economic data as at 30 June 2019 were restated following the classification of Solution Net Systems Inc. as asset available for sale as required by the accounting standard IFRS 5.

EBITDA Adj: actual vs last year

€ m

* The comparative economic data as at 30 June 2019 were restated following the classification of Solution Net Systems Inc. as asset as for sale as required by the accounting standard IFRS 5

Net Debt & Cash Flow Analysis : Dec'19 – Jun'20

€ m

2020 Outlook

▪ The spread of the COVID-19 pandemic in Europe and the Americas during Q2 had a considerable impact on the results for H1-2020. The Group has promptly reacted this fast-moving scenario implementing aggressive cost measures to

▪ Despite the improvement in the booking trend in Europe recorded at the beginning of Q3 and the positive trend in Asia, the sharp decline of the order portfolio compared to last year and the worsening of the market environment in USA does not lay the basis for a prompt recovery of the top line in the short term. Faced with this uncertainty, the Group will

• protect profit
• continue to implement efficiency plans and cost containment actions

▪ In this context, the Group's strategy confirms its focus on innovation and investment in strategic market segments, pursuing both organic and external growth, while consolidating and repositioning its presence in the core markets

Contact

IR CONTACTS

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

IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@datalogic.com

ir@datalogic.com Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy

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November 12, 2020 9M 2020 Results

This presentation contains statements that are neither reported financial results nor other historical information. These statements are forward-looking statements. These forward-looking statements rely on a number of assumptions and are subject to a number of risks and uncertainties, many of which are outside the control of Datalogic S.p.A., that could cause actual results to differ materially from those expressed in or implied by such statements, such as future market conditions, currency fluctuations, the behavior of other market participants and the actions of governmental and state regulators

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Datalogic S.p.A.

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