Investor Presentation • Mar 20, 2020
Investor Presentation
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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.
This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.
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❑ Increasing investments in R&D at 64.7 m€ reaching 10.6% on revenues, executing Group's innovation strategy.
❑ Cash Generation with a free cash flow at 32.6 m€ in FY2019.
❑ Retail: tough comparison due to major Fixed Retail Scanner rollouts with large clients in EMEAI in 2018. Positive
❑ Manufacturing: double digit growth in North America, partially offset by slowdown in Automotive (EMEAI) and in
| € m |
FY 2019 | FY 2018 | Var % vs. FY 2018 |
Constant FX |
|---|---|---|---|---|
| Retail | 265.7 | 278.0 | (4.4%) | (7.1%) |
| Manufacturing | 157.4 | 169.9 | (7.4%) | (8.6%) |
| Transportation & Logistics | 75.0 | 68.6 | 9.5% | 6.6% |
| Healthcare | 20.0 | 20.1 | (0.3%) | (3.2%) |
| Channel (Unallocated) | 50.0 | 49.2 | 1.8% | 0.4% |
| Total DL Business | 568.1 | 585.7 | (3.0%) | (5.2%) |
| Solution Net Systems | 29.1 | 28.3 | 2.6% | (2.6%) |
| Informatics | 18.7 | 19.6 | (4.3%) | (9.3%) |
| Intra division | (3.4) | (2.6) | ||
| Total Datalogic | 612.5 | 631.0 | (2.9%) | (5.3%) |
❑ EMEAI: growth in HC and T&L partially offsetting Retail downturn due to major FRS roll outs in 2018.
❑ North America: revenues show positive growth across all verticals. Excluding SNS and INF, NA Business grew 8.8%.
| € m |
FY 2019 | FY 2018 | Var % vs. FY 2018 |
Constant FX |
|---|---|---|---|---|
| Italy | 48.0 | 53.0 | (9.6%) | (10.5%) |
| EMEAI (Ex Italy) | 261.6 | 271.8 | (3.7%) | (5.0%) |
| EMEAI | 309.6 | 324.8 | (4.7%) | (5.9%) |
| North America | 219.4 | 205.9 | 6.6% | 1.5% |
| APAC | 67.4 | 83.8 | (19.6%) | (20.1%) |
| Latin America | 16.1 | 16.5 | (2.5%) | (4.3%) |
| Total Datalogic | 612.5 | 631.0 | (2.9%) | (5.3%) |
❑ New products* net sales account for 20.1% of total sales improved from 15.0% in 2018
❑ R&D spending amounted to approximately 65 m€ 10.6% on turnover, in line with the Group's strategy on
* New Products: products launched in the last 24 months
| € m | FY 2019 | FY 2018 | Variance | Constant | |
|---|---|---|---|---|---|
| Reported | F X |
||||
| ▪ Revenues down 2.9% to €612.5 m (-5.3% Net FX); |
|||||
| Revenues | 612.5 | 631.0 | (2.9%) | (5.3%) | |
| Gross Margin | 293.1 | 306.0 | ▪ Gross Margin at 47.9%, flat Net FX |
||
| % on Revenues | 47.9% | 48.5% | -0.6 pp | +0.0 pp | ▪ Operating expenses at €220.0 m: |
| Operating expenses | (220.0) | (215.6) | |||
| % on Revenues | (35.9%) | (34.2%) | -1.8 pp | ✓ R&D on revenues in line with previous year |
|
| * EBITDA |
95.0 | 105.5 | ✓ S&D on revenues from 17.8% to 19.7% due |
||
| % Ebitda margin | 15.5% | 16.7% | -1.2 pp | -0.6 pp | |
| EBIT | 65.5 | 83.5 | to the carry over effects of commercial | ||
| % Ebit margin | 10.7% | 13.2% | -2.5 pp | -2.0 pp | organization investments from last year |
| Net Income | 50.3 | 62.2 | ✓ G&A and other items kept under control |
||
| % on Revenues | 8.2% | 9.9% | -1.6 pp | -1.2 pp | |
| EUR/USD FX Exchange Rate | 1.12 | 1.18 | from 6.6% to 6.5% | ||
| ▪ Net income at €50.3 m or 8.2% on revenues |
€ m
€ m
Leveraging Global DL industrial and logistic footprint to mitigate fulfilment risks from Covid-19
Balanced revenue distribution across geographies
The global macroeconomic scenario has shown signs of uncertainty and slowdown for 2020, especially in EMEA and APAC because of the US-China trade war. The uncertainty is further aggravated by the 'coronavirus' outbreak spreading since January 2020.
The situation is particularly complex and rapidly evolving. Based on the information available, it is difficult to predict the economic impacts on the market affected and consequently on the Datalogic Group in 2020. Impact on Group results will depend upon the widespread of the virus in the geographies in which the Group operates. The Group diversification in Geography and Markets will contribute to mitigate the risk of adverse impact of Covid-19.
Despite the current environment the Group will continue its growth strategy focused, among others, on the development of new products, maximizing profitability, also through a careful cost control policy, maintaining equity and financial solidity.
IR Manager Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 [email protected]
IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail [email protected]
[email protected] Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy
April 30, 2020 Shareholders' Meeting
May 11, 2020 Q1 2020 Results
May 26-27, 2020 STAR Conference Milan
www.datalogic.com
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
© 2019 Datalogic S.p.A. and/or its affiliates - All rights reserved. • Without limiting the rights under copyright, no part of this documentation may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means, or for any purpose, without the express written permission of Datalogic S.p.A. and/or its affiliates • Datalogic and the Datalogic logo are registered trademarks of Datalogic S.p.A. in many countries, including the U.S. and the E.U. • All other trademarks and brands are property of their respective owners.
Via Candini, 2 - 40012 Lippo di Calderara di Reno - Bologna (Italy) Tel. +39 051 3147011 | Fax +39 051 3147205 [email protected] ww.datalogic.com
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