Datalogic

Investor Presentation • Oct 10, 2017

STAR Conference London 10 October 2017

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.

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Group Overview

Datalogic at a glance

• Global leader of barcode readers, mobile computers, sensors, vision systems and laser marking systems with cutting-edge solutions in verticals market: Retail, Transportation & Logistics, Manufacturing, Healthcare Industries
• Founded in 1972 by Romano Volta in Bologna, Italy and listed on the STAR Segment of the Italian Stock Exchange since 2001
• A large portfolio of more than 1,200 patents
• About 2,700 employees, of which 470 in R&D
• Direct presence in 30 countries worldwide selling to 120 countries, with more than 1,000 partners worldwide

Over 40 years of Technological Innovation

1972	FOUNDATION	Established in Bologna
1988 1997	EXPANSION	Escort Memory Systems Inc. IDWare Mobile Computing&Comm.
2001	LISTING	Listed on the STAR segment of Italian Stock Exchange
2002 2011	EXPANSION	Minec AB Laservall SpA Informatics Inc. PSC Inc. Datasensor SpA Evolution Robotics Retail Inc. Accu-Sort Systems Inc. PPT Vision Inc.
2012 2015	INNOVATION	Acquisition of Multiwave Photonics SA Partnership with CAEN RFID Srl
2017	EXPANSION	Set up new One Datalogic Acquisition of Soredi Touch Systems GmbH

A Wide Geographical Footprint

Stock and Governance

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 (October 4, 2017): 30.52 Euro Market Cap (October 4, 2017): 1.78 B Euro Specialist: Intermonte SIM Auditing Company: EY

Strategy

Unique Player across IA and ADC Markets

DATALOGIC is the only player across the Global competitive landscape who can boast a wide and consolidated experience in both the two fields of:

• Industrial Automation (dating back to the foundation of the company)
• Automatic Data Capture (leadership deriving from the acquisition of PSC USA )

A New Organisation by Verticals…

…with a Wide and Complementary Offer

Total Addressable Market

Total Addressable Market @ \$9 BN

Source: VDC 2017 and Management estimates

Market Drivers

▪ E-commerce and multichannelrelated trends drive purchase of data capture products

• Technology enhancement for frictionless shopping
• Brick-and-mortar focus on automation in warehouses and distribution centers

Retail Manufacturing

• Advance traceability beyond barcode
• Trends toward Intralogistic solutions and Robotic/AGV guidance

Transport & Logistics Healthcare

• E-commerce trends driving CEP & Logistics
• Increasing detection & tracking needs in the Airports

• Push on technology enhancements & multi-technology integrated solutions

• Compliance regulations

• Increasing needs for real-time tracking of medical equipment, staff & patients
• Move to Electronic Medical Records (EMR) driving imager adoption

Datalogic's offer along the value chain

New One DATALOGIC Group Organization

*The newco Solution Net System Inc. is the result from the spin-off of the Systems Business Unit.

A clear new strategy

THE OBJECTIVE THE SCOPE THE ADVANTAGE

Keep on constantly growing, above market average, while significantly improving profitability

Remain a product company with new emphasis on solutions to satisfy the needs of End Users in the following Industries: Retail, Healthcare, T&L and Manufacturing

Become a significant player in North America and further establish in APAC with a growing presence in China

Consolidate our position in EMEA

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

Technologies and Products

Product Innovation and Development

• New product development process that starts from the Customers' needs – 1st milestone of the new product development
• A large and growing portfolio of more than 1,200 patents and pending patent applications
• About 300 pending patent applications in all jurisdictions
• In 2016 24.3% of revenues from new products*
• 10 Research & Development Centers
• Around 470 people employed in R&D, of which more than 400 Engineers

* Are considered new products the products announced in the last 24 months

Portal Scanning

NRF – Retail's big show 2017

VISITORS

▪ 655 registered leads

(more than doubled vs. 2016)

TOP VISITED PRODUCTS

• Jade
• Joya Touch

NEW CONCEPT AND PRODUCTS

• Joya Touch Android 6
• Powerscan Retail
• Rida companion scanner
• RFID indoor Geo-Location
• Digital Tailor 3D imaging body scanner
• New Single Plane scanners
• New LaneHawk loss prevention

Market split by Technology

Datalogic can offer all the technologies available for products identification

Data Capture Technology

2D Imager 57%

OPTICAL 95% RFID 5%

2017 (base year 2016)

includes only Hand Held Scanners, Industrial Stationary Scanners and Point of Sale Check Out Market Value: \$4.3 Bn

Laser Scanner 28%

Linear Imager 16%

Financials

Improvements across the whole P&L

€ mln	H12017	H12016	Var%	▪	Revenues up 6.2% to €299.3
Revenues	299.3	281.8	6.2%		mln (+4.8% at constant exchange rate)
Gross Operating Margin	142.3	130.9	8.6%
%on Revenues	47.5%	46.5%		▪	GOM steady improving trend QoQ, at 47.5%
Operating expenses	(98.3)	(94.9)	3.6%
%on Revenues	(32.8%)	(33.7%)		▪	R&D on revenues from 8.6%
EBITDA	51.8	45.0	15.3%		to 8.8%
Ebitda margin	17.3%	16.0%		▪	Timing effects on R&D &
EBIT	41.2	35.3	16.6%		distribution costs
Ebit margin	13.8%	12.5%		▪	EBITDA margin to 17.3%
EBT	37.2	32.8	13.5%		notwithstanding negative
Taxes	(7.9)	(6.6)	20.0%		EUR USD FX
Net Income	29.3	26.2	11.9%	▪	Forex and higher gross
% on Revenues	9.8%	9.3%			debt effect on financial costs
Exchange Rate	1.0830	1.1159

• mln (+4.8% at constant exchange rate)
• GOM steady improving trend QoQ, at 47.5%
• R&D on revenues from 8.6% to 8.8%
• Timing effects on R&D & distribution costs
• EBITDA margin to 17.3% notwithstanding negative EUR USD FX
• Forex and higher gross debt effect on financial costs
• Stable tax rate at ~ 21%

Steady Growth over the Years

Group Revenues by country

REVENUES BY GEOGRAPHIC AREA
€ mln	H1 2017	H1 2016	Var%
EMEA	158.7	148.2	7.1%
North America	90.4	87.2
Latin America	12.0	13.5	(11.4%)
Asia Pacific	38.3	33	16.0%
Total Revenues	299.3	281.8	6.2%
North America 30%	APAC 13% Latin America 4%		EMEA 53%

• Revenues up 6.2% to € 299.3 mln (+4.8% at a constant exchange rate)
• Strong growth in APAC driven by China (+28%) in Manufacturing and T&L
• Confirming Leadership in EMEA led by Retail
• NA growth driven by T&L and Healthcare in Datalogic division (+7.3%); Informatics dragging down growth
• LA affected by large deals in 2016, but improving QoQ (+60%)

Group Revenues & EBITDA by division

REVENUES BY DIVISION

€ mln	H12017	H12016
Datalogic	279.2	260.2	7.3%
Solution Net Systems	10.6	10.0	6.3%
Informatics	11.2	12.8	(11.9%)
Adjustments	(1.7)	(1.0)	n.m.
Total Revenues	299.3	281.8	6.2%

• Datalogic Division over performing Group growth driven by a double digit growth of Fixed Retail Scanners, ID and Machine Vision
• Solution Net Systems, keeps on steady growing (+ 6.3%), and profitability turnaround
• Informatics still in a downward trend, though improving on a quarterly basis

EBITDA BY DIVISION

	H12017	H12016
Datalogic	51.3	46.1
Solution Net Systems	0.8	(0.9)
Informatics	(0.3)	(0.3)
Total Group	51.8	45.0

Focus on Datalogic Division

(*)The Channel (Unallocated) includes revenues not directly attributable to the 4 identified industries.

Consolidated Balance Sheet

	Dec 2016	Jun 2017		Dec 2016	Jun 2017
Total Fixed Assets	371.7	354.0	Net Financial Position	(3.5)	(5.5)
Trade receivables	75.5	87.1
% on 12m rolling sales	13.1%	14.7%
Inventories	82.3	88.5
% on 12m rolling sales	14.3%	14.9%
Trade payables	(104.6)	(105.4)	Net Equity	336.4	330.2
% on 12m rolling sales	-18.1%	-17.7%
Trade Working Capital	53.2	70.2
% on 12m rolling sales	9.2%	11.8%
Other assets/liabilities	(92.1)	(99.4)
Net Invested Capital	332.9	324.8	Total Sources	332.9	324.8

Net Debt Analysis: December'16 – June'17

€ mln

2017 Outlook

• Keep on growing in revenues at rates substantially in line with H1
• Strong focus on gross operating margin to maintain a sound profitability
• Increasing R&D & Distribution operating expenses in H2 to boost further growth & maintain leadership in the market
• Cash Generation through NWC improvement
• T&L: keep growing in main Geo Areas, capturing ecommerce & CEP trends
• Retail: growth recovery through strong pipeline of new products
• HC: enlarging customer base in North America
• Manufacturing: keep on steady growing in China and other main Geo Areas, backed by strong demand for automation

▪ Strong pipeline of new products in H2 particularly in in the Retail and Manufacturing industries

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

Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy

NEXT EVENTS

November 13th, 2017 9M results

DATALOGIC ON LINE

www.datalogic.com