Investor Presentation • Mar 21, 2019
Investor Presentation
Open in ViewerOpens in native device viewer
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.
Global technology leader in the automatic data capture and process automation markets, in the Retail, Manufacturing, Transportation & Logistics, and Healthcare industries
Founded in 1972, listed on the Italian Stock Exchange since 2001
1200 patents filed and more than 350 in approval
10 Manufacturing and Repair facilities in: US, Brazil, Hungary, Slovakia, Italy, China, Vietnam and Australia
500 engineers in 11 R&D centers and 3 DL Labs in: Italy, USA, Vietnam, China, and Germany
3157 Employees in 27 countries: 21% Americas, 56% EMEA, 23% APAC
Market Segment: STAR MTA
Reuters Code: DAL.MI
Bloomberg Code: DAL IM
Outstanding Shares: 58,446,491
Share Par-Value: 0.52 Euro each
Ticker: DAL Price (March 19, 2019): 23.55 Euro Market Cap (March 19, 2019): 1.38 B Euro Auditing Company: EY
Keep constantly growing above market average, while significantly improving profitability
Remain a product company with new emphasis on solutions satisfying the needs of the End-Users in the following industries: Retail, Manufacturing, Transportation&Logistics and Healthcare
Moving from a product to a Customer-Centric company, leveraging on our wide range of products that is able to fulfill our Customers' needs for both data collection and process automation and providing end-to-end solutions across the entire flow of operations
Uniquely positioned to address customers' needs in both data capture and process automation along their entire value chain.
TAM: ~ 14 bln USD
▪ Online retailers are opening brick-and-mortar stores, while traditional retailers are converting
▪ Retailers who collect customer data on every step of the journey are headed in the right direction
▪ Retail E-commerce sales worldwide posted solid gains in 2017, rising 23.2% to \$2.290 trillion *, but
▪ Retailers are looking for advanced logistics solutions to be able to satisfy the needs of the E-
* Source: eMarketer
Robotics / AGV
DPM / Extended Traceability and Quality Inspection ▪ New segments due to new technology (i.e. Electric car)
* Source: IoT Analytics
** Source: International Federal of Robotics (IFR) data and Loup Ventures
▪ Growth is driven by E-commerce: high speed sorting, ability to manage any size of parcel, and high flexibility. E-Commerce is driving the industry growth
▪ Resolution 753 requires (from June 2018) IATA members to maintain an accurate inventory of baggage by monitoring the acquisition and delivery of baggage
▪ The baggage handling system market* is projected to reach USD 9.36 Billion by 2020, at a CAGR
▪ Robotics & Automation: collaborative robots and automatic solutions to get higher
* Source: IATA
▪ RTLS (Real Time Location System) - System used to provide immediate or real-time tracking and management of medical equipment, staff and patients within all types of patient care
▪ Real-Time Location Systems market will be worth \$3.070 Billion by 2020 * ▪ RTLS healthcare market generated revenue of \$717.8 Million in 2015 and is projected to grow at 19.2% CAGR through 2021 **
▪ HC Emerging trends: Telemedicine/Telehealth. Health systems are more and more using digital health tools and telehealth platforms to better care for patients after they leave the hospital,
* Source: RFID Global Solution, Inc ** Source: PR Newswire
• Memor™ 10, new PDA validated for the Google™-led initiative "Android Enterprise Recommended" program for rugged devices.
Main accomplishments:
R&D investments reaching 9.8% on Revenues (10.2% on DL Business)
PowerScan PD9530 becomes PD9531
S3Z Miniature Sensor
AREX 400 family of Fiber Laser Marker
Retail: Double digit growth in NA thanks to projects on Fixed Retail Scanners and Mobile Computers
Manufacturing: Double digit growth in China & NA (Net FX) mainly driven by industrial barcode scanners
T&L: Double digit growth mainly driven by big projects in NA with TIER1 parcel companies
Healthcare: Decrease due to big projects in NA in 2017
Retail: Best quarter of the year driven by NA
Manufacturing: Double digit growth in NA partially offset by slow down in APAC
T&L: Slow down in all regions due to big projects phasing
Healthcare: Best quarter of the year with signs of recovery thanks to new project in NA
| % weight on Total |
€ m |
FY 2018 | Var % | Net FX |
|---|---|---|---|---|
| 50.4% | Retail | 295.4 | 5.4% | 8.0% |
| 29.8% | Manufacturing | 174.6 | 11.5% | 13.1% |
| 11.8% | Transportation & Logistic | 69.2 | 13.6% | 15.8% |
| 3.5% | Healthcare | 20.2 | (28.6%) | (26.9%) |
| 4.5% | * Channel (Unallocated) |
26.3 | (30.7%) | (30.3%) |
| 100.0% | Total DL Business | 585.7 | 3.9% | 5.9% |
| 92.8% | DL Business | 585.7 | 3.9% | 5.9% |
| 4.5% | Solution Net Systems | 28.3 | 14.5% | 20.2% |
| 3.1% | Informatics | 19.6 | (4.9%) | (0.5%) |
| (0.4%) | Adjustments | (2.6) | ||
| 100.0% | Total Datalogic | 631.0 | 4.1% | 6.4% |
| % weight | € m |
Q4 2018 | Var % | Net FX |
| on Total 52.5% |
Retail | 81.3 | 9.4% | 8.0% |
| 28.3% | Manufacturing | 43.8 | 5.7% | 5.4% |
| 12.0% | Transportation & Logistic | 18.6 | (7.7%) | (8.7%) |
| 4.2% | Healthcare | 6.6 | (5.7%) | (7.2%) |
| 2.9% | Channel (Unallocated) * |
4.4 | 31.0% | 31.3% |
| 100.0% | Total DL Business | 154.7 | 5.8% | 4.8% |
| 93.8% | DL Business | 154.7 | 5.8% | 4.8% |
| 3.6% | Solution Net Systems | 5.9 | 8.5% | 5.1% |
| 3.0% | Informatics | 5.0 | 17.9% | 14.2% |
| (0.4%) | Adjustments | (0.6) |
* Includes Revenues not directly allocated to the Verticals
EMEA: Declining trend entirely due to Retail; positive growth for T&L and Manufacturing
North America: Stellar performance in 2018 driven by double digit growth in Retail, T&L and Manufacturing (Net Fx)
APAC: Entirely driven by China (+13,9%) thanks to Manufacturing (+29,7%)
| % weight on Total |
€ m |
FY 2018 | Var % | Net FX |
|---|---|---|---|---|
| 50.9% | EMEA | 320.9 | (2.0%) | (1.6%) |
| 32.6% | North America | 205.6 | 13.8% | 18.4% |
| 13.8% | Asia Pacific | 87.3 | 9.7% | 13.3% |
| 2.7% | Latin America | 17.2 | (5.3%) | 2.0% |
| 100.0% | Total Revenues | 631.0 | 4.1% | 6.4% |
| % weight on Total |
€ m |
Q4 2018 | Var % | Net FX |
|---|---|---|---|---|
| 50.2% | EMEA | 82.9 | (7.7%) | (7.9%) |
| 32.1% | North America | 52.9 | 33.9% | 29.7% |
| 14.0% | Asia Pacific | 23.0 | 12.2% | 11.7% |
| 3.7% | Latin America | 6.1 | 11.1% | 14.7% |
| 100.0% | Total Revenues | 164.9 | 6.2% | 5.1% |
EMEA: Results impacted by Retail (mainly Italy) and T&L project seasonality
North America: Double digit growth driven by Retail
APAC: Positive trend due to Retail in APAC, slow down Manufacturing in China
Latin America: Growth driven by Retail
| Q4 2018 | Q4 2017 | Var% | |
|---|---|---|---|
| 164.9 | 155.3 | 6.2% | ▪ Acceleration in Q4 driven by NA +33.9% vs LY (+29.7% vs Net FX) |
| 79.2 | 75.9 | 4.4% | |
| ▪ Revenues up 6.2% to €164.9m (+5.1% Net FX) |
|||
| 48.0% | 48.9% | ||
| (55.2) | (54.3) | 1.8% | ▪ Gross Margin up 4.4% to €79.2m. |
| (33.5%) | (34.9%) | ▪ Operating expenses up by 1.8% to €55.2m. |
|
| 28.0 | 25.4 | 10.3% | |
| 17.0% | 16.4% | ▪ EBITDA margin from 16.4% to 17.0% thanks to increase in Revenues compensating higher |
|
| 22.4 | 20.4 | 9.9% | investments |
| 13.6% | 13.1% | ||
| 1.14 | 1.18 | ||
| € m | 2018 | 2017 | Var % |
|---|---|---|---|
| Revenues | 631.0 | 606.0 | 4.1% |
| Gross Margin | 306.0 | 288.4 | 6.1% |
| %on Revenues | 48.5% | 47.6% | |
| Operating expenses | (215.6) | (199.8) | 7.9% |
| %on Revenues | (34.2%) | (33.0%) | |
| EBITDA | 105.5 | 103.3 | 2.2% |
| %Ebitda margin |
16.7% | 17.0% | |
| EBIT | 83.5 | 82.9 | 0.8% |
| %Ebit margin |
13.2% | 13.7% | |
| EBT | 77.8 | 75.5 | 3.2% |
| Taxes | (15.6) | (15.4) | |
| Net Income | 62.2 | 60.1 | 3.5% |
| % on Revenues | 9.9% | 9.9% | |
| Exchange Rate | 1.18 | 1.13 |
| % | ▪ Revenues up 4 1 % to €631 0 m (+ 6 4 % at constant exchange rate) |
|---|---|
| ▪ Gross Margin showing steady improving trend at 48 5 % (around +90 bps vs 2017 ) |
|
| ▪ Operating expenses up by 7 9 % to €215 6 m |
|
| ✓ R&D on revenues up to 9 8 % (10 2 % on DL Business) |
|
| ✓ S&D on revenues from 16 5 % to 17 8 % (+130 bps YoY) due to strengthening of commercial organization |
|
| ✓ G&A on revenues decreased by 7 9 % , moving from 7 4 % to 6 6 % on revenues |
|
| ▪ EBITDA margin at 16 7 % improved Gross Margin and volumes partially offsets higher R&D and |
|
| Distribution expenses |
|
| ▪ EBT up by 3 2 % thanks to financial charges offsetting negative effect related to reorganization |
|
| ▪ Net income at €62 2 m up by 3 5 % thanks to slight |
reduction on tax rate (20 . 1 % -30 bps vs 2017 )
▪ Solution Net Systems EBITDA substantially in line with 2017 (€ 2.9 m); EBITDA margin decreased by 110 bps due to Royal Mail
| FY 2018 | |||
|---|---|---|---|
| Division | EBITDA | EBITDA Margin |
Var % |
| DL Business | 102.1 | 17.4% | 1.9% |
| Solution Net Systems | 2.9 | 10.4% | 3.0% |
| Informatics | 0.7 | 3.4% | 358.2% |
| Adjustments | (0.2) | ||
| Total Datalogic | 105.5 | 16.7% | 2.2% |
* Excluding Service and other non significant items
| €m | 2018 Dec 2018 |
2017 Dec 2017 |
€m | 2018 Dec 2018 |
2017 Dec 2017 |
|---|---|---|---|---|---|
| Total Fixed Assets | 369.7 | 347.9 | Net Financial Position | (23.8) | (30.1) |
| Trade receivables | 90.4 | 85.8 | |||
| % on 12m rolling sales | 14.3% | 14.2% | |||
| Inventories | 95.8 | 85.9 | |||
| % on 12m rolling sales | 15.2% | 14.2% | |||
| Trade payables | (117.1) | (110.3) | Net Equity | 375.8 | 353.0 |
| % on 12m rolling sales | -18.6% | -18.2% | |||
| Trade Working Capital | 69.1 | 61.5 | |||
| % on 12m rolling sales | 11.0% | 10.1% | |||
| Other assets/liabilities | (86.9) | (86.5) | |||
| Net Invested Capital | 352.0 | 322.9 | Total Sources | 352.0 | 322.9 |
| €m | 2018 Dec 2018 |
2017 Dec 2017 |
€m | 2018 Dec 2018 |
|---|---|---|---|---|
| Total Fixed Assets | 369.7 | 347.9 | Net Financial Position | (23.8) |
| Net Equity | 375.8 | |||
| Net Invested Capital | 352.0 | 322.9 | Total Sources | 352.0 |
Maintain a strong Cash Generation from operations
Focus on Innovation: increase R&D investment
▪ Retail: outlook remains very positive in NA; expected recovery in EMEA and APAC along the year thanks to new
▪ Manufacturing: NA as growth engine of 2019 thanks to increase in coverage
▪ T&L: maintain the pace in NA and leveraging cross selling thanks to new
▪ Channel: SMB expected recovery thanks to new products particularly suitable for
April 30, 2019 Shareholders' meeting
May 14, 2019 1Q 2019 Results
August 7, 2019 6M Results
November 13, 2019 9M Results
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
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
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.