Datalogic

Investor Presentation • May 15, 2019

Q1 2019 Results Conference Call

15 MAY 2019

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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Net income grew faster than sales

* Impacted by IFRS16

% weight on Total	€ m	Q1 2019	Var % vs. Q1 2018	Constant FX
57,8%	EMEAI	83,6	1,5%	0,7%
30,1%	North America	43,5	10,2%	1,7%
10,2%	APAC	14,8	(18,2%)	(21,5%)
1,9%	Latin America	2,8	(9,5%)	(11,9%)
100,0%	Total Revenues	144,6	1,2%	-2,1%

% weight on Total	€ m	Q1 2019	Var % vs. Q1 2018	Constant FX
46,9%	Retail	63,6	(2,2%)	(5,6%)
28,7%	Manufacturing	38,9	(4,0%)	(5,9%)
10,9%	Transportation & Logistics	14,7	16,8%	12,5%
4,0%	Healthcare	5,4	19,9%	15,6%
9,6%	Channel (Unallocated)	13,0	30,9%	28,8%
100,0%	Total DL Business	135,6	2,3%	-0,7%
93,8%	DL Business	135,6	2,3%	(0,7%)
3,8%	Solution Net Systems	5,5	(10,3%)	(17,2%)
3,0%	Informatics	4,3	(10,1%)	(17,0%)
(0,5%)	Intra division	(0,8)
100,0%	Total Datalogic	144,6	1,2%	-2,1%

Group Revenues Breakdown

DL Business: +2.3% and almost flat Net FX

Retail: decline YoY due to Italy and China , positive growth for EMEAI (excluding Italy) and NA

Manufacturing: Double digit growth in NA (Net FX) mainly driven by industrial barcode scanners; drop in China, mainly in the electronics market

T&L: Double digit growth driven by NA

Healthcare: Recovery driven by EMEAI and NA

Channel: strong growth driven by stock creation of new products

Revenues by Verticals

Revenues by Geography

EMEAI: excluding Italy grew by 5.7%. Positive trend mainly driven by T&L (+7.9%) and Healthcare (+44.3%)

North America: Datalogic Business revenues show positive growth +18.6% (+9.5% net forex) mainly driven by double digit growth in T&L (+44%) and Manufacturing (+19%)

APAC: Negative trend driven by China in all the sectors due to trade war

- 4 New Products launched in Q1 2019

• New product net sales account for 19.5% of total sales for the quarter compared to just 13.5% in Q1 2018 and 17.3% in Q4 2018

Q1 2019 New Product Launches and Innovation

Falcon X4 Auto Range

Datalogic Shield

Taskbook

Matrix 220 High Power and Blue Light Models

Mobile Computing Factory Automation

New High Power Illuminators and DPM Blue Light models double the image luminosity for higher application speed and further reading distances, providing the highest flexibility in reading DPM bar codes on any type of material background color

The new Auto Range scanning capability allows the Falcon X4 to scan up to 15.0 m / 49.2 ft while providing superior performance and user experience of Datalogic scanning technology

Datalogic Shield extends the lifecycle of Android mobile computers, offering our customers years of protection on their rugged device investment

The new TaskBook is a rugged tablet expressly designed for industrial applications

Q1 2019 P&L

€ m	Q1 2019	Q1 2018	Var%
Revenues Gross Margin %on Revenues Operating expenses %on Revenues EBITDA	144.6 70.2 48.5% (53.9) (37.3%) 21.6	142.9 69.8 48.8% (51.4) (36.0%) 22.0	1.2% 0.5% 4.9% (1.4%)	▪ Revenues up 1.2% to €144.6 m (-2.1% at constant exchange rate); DAL Business revenues at €135.6 m (+2.3%, -0,7% Net Fx) ▪ Gross Margin almost flat at 48.5% ▪ Operating expenses up by 4.9% to €53.9m: ✓ R&D on revenues down from 10.2% to 9.9% (10.1% on DL Business)
%Ebitda margin EBIT %Ebit margin EBT Taxes	15.0% 14.8 10.2% 16.1 (3.5)	15.4% 16.5 11.6% 14.7 (3.5)	(10.3%) 9.8%	✓ S&D on revenues from 18.0% to 20.1% due to carry over of last year's commercial organization investments ✓ G&A almost in line with previous year, moving from 7.8% to 7.3% on revenues
Net Income % on Revenues Exchange Rate	12.6 8.7% 1.14	11.2 7.8% 1.23	12.4%	▪ Net income at €12.6m up by 12.4% thanks to positive exchange rate differences and higher incomes from liquidity investments.

EBITDA: actual vs last year € m

Consolidated Balance Sheet

€ m	Mar-19	Dec-18	€ m	Mar-19	Dec-18
Total Fixed Assets	389.4	369.7	Net Financial Position	3.9
Trade receivables	78.8	90.4
% on 12m rolling sales	12.5%	14.3%
Inventories	107.7	95.8			375.8
% on 12m rolling sales	17.0%	15.2%
Trade payables	(99.2)	(117.1)	Net Equity	390.5
% on 12m rolling sales	(15.7%)	(18.6%)
Trade Working Capital	87.4	69.1
% on 12m rolling sales	13.8%	11.0%
Other assets/liabilities	(82.3)	(86.9)
Net Invested Capital	394.4	352.0	Total Sources	394.4

Net Debt	EBITDA	Ch TWC	Capex	Taxes	Net Financial
Dec 18					Charges

Net Debt & Cash Flow Analysis : Dec'18 – Mar'19

2019 Outlook

Market Financials

• Top line recovery expected thanks to a stronger second half confirming growth trend on revenues and profitability almost in line with last year
• Growth in 2H driven by ramp up of new products launched in the last 12 months

• Industry trends are confirmed and remain positive
• Q2 macro economic scenario remains uncertain due to US-China trade war

• Retail: expected recovery in EMEAI and APAC thanks to new products
• Manufacturing: NA as growth engine of 2019 thanks to last year strengthening of sales organization
• T&L: outlook remains highly positive mainly driven by NA
• HC: keep growing driven by EMEAI and NA thanks to new dedicated products
• Channel: Expected growth in SMB driven by new products particularly suitable for the channel

Verticals

August 7, 2019 6M Results

November 13, 2019 9M Results

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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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