Datalogic

Quarterly Report • May 26, 2016

Quarterly Financial Report

at 31st March 2016

DATALOGIC GROUP

Quarterly Financial Report at 31 st March 2016

GROUP STRUCTURE	pag. 1
COMPOSITION OF CORPORATE BODIES	pag. 2
MANAGEMENT REPORT	pag. 3
CONSOLIDATED FINANCIAL STATEMENTS
Statement of financial position - assets	pag. 11
Statement of financial position - liabilities	pag. 12
Statement of income	pag. 13
Statement of comprehensive income	pag. 14
Statement of cash flow	pag. 15
Statement of shareholders' equity	pag. 16
EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Presentation and content	pag. 17
Information on the statement of financial position	pag. 19
Information on the statement of income	pag. 34

ANNEX

1. Restated consolidated statement of income at 31 st March 2015

2. Declaration pursuant to Art. 154-bis, pars. 3 and 4, Legislative Decree 58/1998

DATALOGIC S.p.A. Italy

Branch

COMPOSITION OF CORPORATE BODIES

Board of Directors (1)

Volta Romano Chairman & Chief Executive Officer (2)

Aversa Carlo Achille Director

Caruso Pier Paolo Director

Di Stefano Luigi Independent Director

Mazzalveri Gaia Independent Director

Todescato Pietro Director

Volta Filippo Maria Director

Volta Valentina Director

Statutory Auditors (3)

Fiorenza Salvatore Marco Andrea Chairman

Santagostino Roberto Statutory Auditor

Lancellotti Elena Statutory Auditor

Prandi Paolo Alternate Statutory Auditor

Fuzzi Mario Alternate Statutory Auditor

Magnani Sonia Alternate Statutory Auditor

Auditing Company

Reconta Ernst & Young S.p.A.

(2) Legal representative with respect to third parties.

⁽¹⁾ The Board of Directors will remain in office until the general meeting that approves the accounts for the financial year ending 31 December 2017.

⁽³⁾ The Statutory Auditors in office until the approval of the accounts for the financial year ending 31 December 2018.

MANAGEMENT REPORT

REPORT ON OPERATIONS

To our Shareholders,

The report for the year ended 31 March 2016, which we submit to you for review, has been prepared in compliance with the instructions in the Borsa Italiana Regulations.

Specifically, consolidated financial statements apply the approach set forth by international accounting standards (IASs/IFRSs) adopted by the European Union.

COMMENTS ON OPERATING AND FINANCIAL RESULTS

The following table summarises the Datalogic Group's key operating and financial results as at 31 March 2016 in comparison with the same period a year earlier (figures in Euro thousands):

	Quarter ended
	31.03.2016	31.03.2015	change	% change
Total revenues	135,353	122,316	13,037	10.7%
EBITDA (*)	18,820	15,690	3,130	19.9%
% of total revenues	13.9%	12.8%
Group net profit/loss	10,073	9,893	180	1.8%
% of total revenues	7.4%	8.1%
Net financial position (NFP) (**)	(34,730)	(68,676)	33,946	-49.4%

(*) EBITDA is a performance indicator not defined under IFRS. However, the management uses it to monitor and assess the company's operating performance, as it is not influenced by volatility due to the various valuation criteria used to determine taxable income, by the total amount and nature of the capital involved or by the related depreciation and amortisation policies. Datalogic defines it as Profit/loss for the period before depreciation and amortisation of tangible and intangible assets, non-recurring costs, financial income and expenses and income taxes.

(**) For the criteria defining the Net Financial Position please see page 8.

The first quarter ended with a net profit of €10.1 million, slightly up compared to the first quarter of 2015, and highlights a remarkable growth in all the main economic indicators, primarily due to a strong market growth in the Retail segment in Europe and North America. EBITDA increased by 19.9% and stood at €18.8 million thanks to the improvement of the operating leverage.

ANALYSIS OF RECLASSIFIED INCOME STATEMENT DATA

The following table shows the main income statement items for the Datalogic Group compared with the same period in the previous year:

Quarter ended
(in €/000)	31.03.2016		31.03.2015		change	%
						change
Total revenues	135,353	100.0%	122,316	100.0%	13,037	10.7%
Cost of sales	(73,226)	-54.1%	(64,429)	-52.7%	(8,797)	13.7%
Gross profit	62,127	45.9%	57,887	47.3%	4,240	7.3%
Other revenues	372	0.3%	691	0.6%	(319)	-46.2%
Research and development expenses	(12,100)	-8.9%	(11,594)	-9.5%	(506)	4.4%
Distribution expenses	(25,162)	-18.6%	(24,008)	-19.6%	(1,154)	4.8%
General and administrative expenses	(9,466)	-7.0%	(9,776)	-8.0%	310	-3.2%
Other operating costs	(327)	-0.2%	(458)	-0.4%	131	-28.6%
Total operating costs and other costs	(47,055)	-34.8%	(45,836)	-37.5%	(1,219)	2.7%
Ordinary operating result before non recurring costs and revenues and administrative costs arising from acquisitions (EBITANR)	15,444	11.4%	12,742	10.4%	2,702	21.2%
Non-recurring costs and revenues	0	0.0%	(462)	-0.4%	462	-100.0%
Depreciation and amortisation due to acquisitions (*)	(1,234)	-0.9%	(1,495)	-1.2%	261	-17.5%
Operating result (EBIT)	14,210	10.5%	10,785	8.8%	3,425	31.8%
Net financial income (expenses)	(887)	-0.7%	(2,361)	-1.9%	1,474	-62.4%
Profits/(losses) from associates	(145)	-0.1%	(60)	0.0%	(85)	141.7%
Foreign exchange gains/(loss)	(919)	-0.7%	3,944	3.2%	(4,863)	n.a.
Pre-tax profit/(loss)	12,259	9.1%	12,308	10.1%	(49)	-0.4%
Taxes	(2,186)	-1.6%	(2,415)	-2.0%	229	-9.5%
GROUP NET PROFIT/(LOSS)	10,073	7.4%	9,893	8.1%	180	1.8%
Depreciation and write-downs of tangible assets	(2,145)	-1.6%	(1,808)	-1.5%	(337)	18.6%
Amortisation and write-downs of intangible assets	(1,231)	-0.9%	(1,140)	-0.9%	(91)	8.0%
EBITDA	18,820	13.9%	15,690	12.8%	3,130	19.9%

(*) This item includes costs for amortisation arising from acquisitions. To provide a better representation of the Group's ordinary profitability, we chose – in all tables in this section concerning information on operating performance – to show an operating result before the impact of non-recurring costs/revenues and of depreciation and amortisation due to acquisitions, which we have called EBITANR (Earnings before interests, tax, acquisitions and not recurring), hereinafter referred to as "Ordinary operating result". To permit comparability with the financial statements, we have in any case included a further intermediate profit margin ("Operating result") that includes non-recurring costs/revenues and depreciation and amortisation due to acquisitions and which matches figures reported in year-end financial statements.

It is noted that figures as at 31 March 2015 were reclassified under various items to render them consistent with figures related to 2016. For the details, reference is made to the Annex to the Financial Statements.

As at 31 March 2016, the Datalogic Group had revenues of €135,353 thousand (€122,316 thousand in the same period of the previous year), of which €127,900 thousand derived from product sales and €7,453 thousand from services.

Revenues increased by 10.7% compared to the previous year; at constant Euro/Dollar exchange rates they would have increased by 9.6%. Revenues confirmed their positive trend in all Divisions, mainly in Europe and North America, the primary markets for the Group.

The new products reported an impact of 27.6% on the turnover of the period, compared to 25% reported in the first quarter of 2015.

The booking (already acquired orders) during the quarter was equal to €140.5 million, down by 1.6% compared to the first quarter of 2015. This decrease is mainly due to a large order received in the first quarter of 2015 in the Retail segment in North America. Excluding this order, the booking would have increased by 5.6%. The orders/turnover ratio for the period is equal to around 104%.

The gross profit, equal to €62,127 thousand, increased by 7.3% against €57,887 thousand reported in the previous year (+7.1% at constant Euro/Dollar exchange rates), while its impact on revenues decreased from 47.3% in 2015 to 45.9% in 2016, due to an increase in cost of materials.

Operating costs, equal to €47,055 thousand, increased by 2.7% (at constant Euro/Dollar exchange rates the increase would have been 1.7%), compared to €45,836 thousand of 2015. Their impact on turnover, however, improved from 37.5% to 34.8%. This trend reflects a business aimed at reducing overheads, decreased by 3.2% to the benefit of costs for R&D, increased by 4.4% to €12,100 thousand, with an impact of 8.9% on revenues.

As at 31 March 2016, depreciation and amortisation due to acquisitions (totalling €1,234 thousand) broke down as follows:

	31.03.2016	31.03.2015	Change
Acquisition of the PSC group (on 30 November 2006)	459	619	(160)
Acquisition of Informatics Inc. (on 28 February 2005)	0	118	(118)
Acquisition of Evolution Robotics Retail Inc. (on 01 July 2010)	159	155	4
Acquisition of Accu-Sort Inc. (on 20 January 2012)	616	603	13
TOTAL	1,234	1,495	(261)

The Group EBITDA increased by 19.9%, at €18,820 thousand, compared to €15,690 thousand in the first quarter of 2015 (+21.8% at constant Euro/Dollar exchange rates), with improved quarterly margins (EBITDA margin) from 12.8% to 13.9%.

The "Ordinary operating result" (EBITANR) was €15,444 thousand (11.4% of revenues) and up by 21.2% over the amount registered for the same period of the previous year (€12,742 thousand).

The Operating Result (EBIT) increased by 31.8%, from €10,785 thousand, recorded in the previous year, to €14,210 thousand (+35% at constant Euro/Dollar exchange rates).

Group net profit, which as at 31 March 2016 was €10,073 thousand, is slightly higher than the profit obtained in the same period of the previous year, equal to €9,893 thousand.

The following table compares the main operating results achieved in the first quarter 2016 with the same period of 2015.

	QI 2016	x	QI 2015	x	change	% change
TOTAL REVENUES	135,353	100.0%	122,316	100.0%	13,037	10.7%
EBITDA	18,820	13.9%	15,690	12.8%	3,130	19.9%
ORDINARY OPERATING RESULT (EBITANR) (*)	15,444	11.4%	12,742	10.4%	2,702	21.2%
OPERATING RESULT (EBIT)	14,210	10.5%	10,785	8.8%	3,425	31.8%

(*) see definition on page 4

COMMENTS ON FINANCIAL RESULTS OF DIVISIONS

	Revenues			EBITDA*
	QI 2016	QI 2015	% change	QI 2016	QI 2015	% change
Datalogic ADC	93,228	84,034	10.9%	22,202	18,664	19.0%
Datalogic IA	35,454	31,723	11.8%	472	505	-6.5%
Informatics	7,375	7,044	4.7%	296	32	n.a.
Datalogic S.p.A.	9,332	6,894	35.4%	2,398	(428)	n.a.
Adjustments	(10,036)	(7,379)	36.0%	(6,548)	(3,083)	n.a.
Total	135,353	122,316	10.7%	18,820	15,690	19.9%

(*) For the purposes of an accurate disclosure of economic performance of the operating segments, the Management deemed it appropriate to highlight the Divisional EBITDA as monitoring KPI.

The Automatic Data Capture (ADC) Division, specialised in the manufacture of fixed bar code readers for the retail market, manual readers and mobile computer for professional use, continues to report a very positive performance in all reference countries, especially in EMEA and North America, thanks to the continuous product innovation.

The Division reported a turnover of €93,228 thousand, up by 10.9% (+9.9% at constant Euro/Dollar exchange rates), compared to the first quarter of 2015 (€84,034 thousand).

The gross profit, equal to €44,029 thousand, increased by 8.2% at constant Euro/Dollar exchange rates, with 47.2% impact on revenues (47.7% at constant Euro/Dollar exchange rates), down compared to 48.4% reported in 2015.

Divisional EBITDA was €22,202 thousand, corresponding to 23.8% of total revenues, an increase compared to 22.2% over the previous year.

Net profit as at 31 March 2016 was €10,570 thousand (11.3% of revenues).

The Industrial Automation Division, specialised in the production of automatic identification systems, security, detection and marking for the Industrial Automation market, reported a turnover of €35.5 million, an increase of 11.8% compared to the first quarter of 2015 (+10.9% at constant Euro/Dollar exchange rates). Revenues of the Division increased by 6.5%%, totalling €30.7 million (+5.9%% at constant exchange rates), excluding results of the Systems Business Unit, which benefits from new orders in the postal segment, including, but not limited to Target Corporation and US Postal Service, as well as Royal Mail.

The gross profit, equal to €14,919 thousand, increased in absolute value compared to €14,282 thousand reported in the first quarter of 2015.

Divisional EBITDA of Industrial Automation was €472 thousand, corresponding to 1.3% of total revenues, which is substantially in line, compared to the first quarter of the previous year. Margins were affected by some delays in the recovery actions of production efficiency and ancillary costs related to the new production plant in Hungary, which became operating in April 2016 and whose effects will be reported over the year. Lastly, Informatics reported a turnover of €7.4 million compared to €7 million in the first quarter of 2015, up by 4.7% (+2.5% at constant exchange rates).

As regards the geographical areas, in the first quarter of 2016, a positive trend was recorded in the European market, with 18.1% growth, at €60.5 million. The performance of sales in North American market was very positive (+17.7% at €39.6 million), mainly in the Retail segment.

ANALYSIS OF FINANCIAL AND CAPITAL DATA

The following table shows the main financial and equity items for the Datalogic Group, compared with 31 December 2015 and 31 March 2015.

(in €/000)	31.03.2016	31.12.2015	31.03.2015
Net intangible assets	52,871	56,547	61,064
Goodwill	175,146	183,020	185,165
Net tangible assets	66,325	68,384	59,433
Unconsolidated equity investments	6,460	6,607	5,239
Other non-current assets	51,663	49,288	47,768
Non-current capital	352,465	363,846	358,669
Net trade receivables from customers	72,869	68,765	69,262
Amounts due to suppliers	(93,749)	(101,711)	(78,670)
Inventories	82,926	69,477	73,948
Net working capital, trading	62,046	36,531	64,540
Other current assets	33,110	28,643	34,441
Other current liabilities and provisions for short term risks	(71,392)	(61,025)	(60,615)
Net working capital	23,764	4,149	38,366
Other M/L term liabilities	(25,449)	(26,773)	(30,212)
Employee severance indemnity	(6,742)	(6,814)	(6,936)
Provisions for risks	(10,254)	(15,187)	(12,034)
Net invested capital	333,784	319,221	347,853
Total Shareholders' Equity	(299,054)	(298,260)	(279,177)
Net financial position	(34,730)	(20,961)	(68,676)

As at 31 March 2016, the net working capital in the trading segment amounted to €62,046 thousand, up by €25,515 thousand, compared to 31 December 2015, while a decrease of €2,494 thousand was reported compared to the same period in the previous year.

The increase in this item, compared to 31 December 2015, is mainly attributable to the increase in inventories, equal to €13,449 thousand, and to the decrease in amounts due to suppliers, from €101,711 thousand at year end to €93,749 thousand at end of the first quarter of this year.

As at 31 March 2016, the net financial position is broken down as follows:

31.03.2016	31.12.2015	31.03.2015
90,342	126,166	91,260
46	46	45
46	46	45
361	361	361
0	0	0
361	361	361
90,749	126,573	91,666
0	0	744
0	0	0
0	0	0
59	45	150
19,966	32,973	25,952
4,233	6,355	2,195
1	6	0
263	260	250
3,969	6,089	1,945
24,258	39,373	28,297
(66,491)	(87,200)	(64,113)
132,685	139,639	152,651
31,765	31,872	20,585
301	394	723
98	115	225
203	279	498
101,221	108,161	132,789
34,730	20,961	68,676

Net financial debt as at 31 March 2016 was negative by €34,730 thousand, a worsening €13,769 thousand compared to 31 December 2015, (when it was negative by €20,961 thousand). The change is primarily due to investments made over the period and the increase, which is typical of the first quarter of each year, of the net trading working capital.

Investments over the period, net of disinvestments, amounted to €1,863 thousand.

The reconciliation between the Parent Company's shareholders' equity and net profit and the corresponding consolidated amounts is as shown below:

	31 March 2016		31 December 2015
	Total equity	Period results	Total equity	Period results
Parent Company shareholders' equity and profit	246,463	1,233	250,417	27,474
Difference between consolidated companies' shareholders' equity and their carrying value in the Parent Company's financial statements; effect of equity-based valuation	112,012	9,940	108,261	76,703
Reversal of dividends				(63,097)
Amortisation of intangible assets "business combination"	(5,827)		(5,827)
Effect of acquisition under common control	(31,733)		(31,733)
Elimination of capital gain on sale of business branch	(18,665)		(18,665)
Effect of eliminating intercompany transactions	(10,801)	(1,081)	(11,826)	(244)
Reversal of write-downs and capital gains on equity investments	6,121		6,121
Sale of know-how	(7)		(7)
Goodwill impairment	(1,395)		(1,395)
Other	(1,422)	(280)	(1,133)	(324)
Deferred taxes	4,308	261	4,047	35
Group shareholders' equity	299,054	10,073	298,260	40,547

FINANCIAL INCOME (EXPENSES)

	Quarter ended
	31.03.2016	31.03.2015	Change
Financial income/(expenses)	(464)	(843)	379
Foreign exchange differences	(919)	3,944	(4,863)
Bank expenses	(377)	(1,682)	1,305
Other	(46)	164	(210)
Total net financial income (expenses)	(1,806)	1,583	(3,389)

Financial income was negative by €1,806 thousand, compared to a positive result of €1,583 thousand related to the same period of the previous year, mainly due to a more unfavourable trend of foreign exchange differences, which reported a negative increase of €4,863 thousand.

The item "Financial income/(expenses)" improved by €379 thousand, mainly due to the entering into a new loan agreement with a pool of banks for the amount of €140 million on 24 February 2015 and the redemption, at the same time, of previous loans amounting to €126 million. This transaction allowed for an increase in the average life of the financial debt and the reduction in the related charges.

The item "Bank expenses" (improved by €1,305 thousand), mainly includes:

• the portion pertaining to the upfront fees period, paid upon opening of long-term loans, in the amount of €53 thousand, (€1,262 thousand as at 31 March 2015, of which €1,250 thousand connected with the early redemption of some long-term loans);

• factoring costs, amounting to €92 thousand (€214 thousand as at 31 March 2015), related to commissions without recourse.

Losses generated by companies carried at equity were recognised in the amount of €145 thousand (€60 thousand as at 31 March 2015).

OUTLOOK FOR CURRENT YEAR AND SUBSEQUENT EVENTS

The results achieved in the first quarter confirm the Group positive trends, especially in the markets in Europe and North America, which recorded a "double digit" growth compared to the same quarter of 2015 (+12.2% and +15.3%, respectively, at constant Euro/Dollar exchange rates). This growth proves the success on the market that our technological solutions are enjoying, thanks to an intensive R&D activity and a more canalised response to market needs, with special focus on the range of applications aimed at the retail, transport and logistics sectors, manufacturing industry and healthcare.

Significant investments are still being made in R&D and, starting from the second half of the year, the Group will benefit from the positive effects that are expected from the streamlining of production and operating costs resulting from the reorganisation and centralisation projects of Group activities and functions.

SECONDARY LOCATIONS

The Parent Company has no secondary locations.

ASSETS (Euro/000)	Note	31.03.2016	31.12.2015
A) Non-current assets (1+2+3+4+5+6+7)		384.591	396.079
1) Tangible assets		66.325	68.384
land	1	5.662	5.763
buildings	1	31.808	32.299
other assets	1	27.300	28.029
assets in progress and payments on account	1	1.555	2.293
2) Intangible assets		228.017	239.567
goodwill	2	175.146	183.020
development costs	2	4.705	5.349
other	2	44.489	47.829
assets in progress and payments on account	2	3.677	3.369
3) Equity investments in associates	3	1.837	1.982
4) Financial assets		35.654	35.718
equity investments	5	4.623	4.625
securities	5	361	361
other	5	30.670	30.732
5) Loans	5	1.095	1.140
6) Trade and other receivables	7	1.916	1.929
7) Deferred tax assets	13	49.747	47.359
B) Current assets (8+9+10+11+12+13+14)		279.293	293.097
8) Inventories		82.926	69.477
raw and ancillary materials and consumables	8	28.157	18.056
work in progress and semi-finished products	8	26.296	24.409
finished products and goods	8	28.473	27.012
9) Trade and other receivables	7	91.437	82.345
trade receivables	7	72.869	68.765
trade receivables from third parties	7	71.480	67.309
trade receivables from associates	7	1.389	1.447
trade receivables from related parties	7		9
other receivables - accrued income and prepaid expenses	7	18.568	13.580
of which from related parties		201	75
10) Tax receivables	9	14.542	15.063
of which from the parent company		6.826	7.383
11) Financial assets	5	0	0
securities		0	0
other		0	0
12) Loans		0	0
13) Financial assets - Derivative instruments	6	0	0
14) Cash and cash equivalents	10	90.388	126.212
Total assets (A+B)		663.884	689.176

	Note	31.03.2016	31.12.2015
LIABILITIES (Euro/000)
A) Total shareholders' equity (1+2+3+4+5)	11	299.054	298.260
1) Share capital	11	146.659	146.659
2) Reserves	11	26.339	35.618
3) Profits (losses) of previous years	11	115.983	75.436
4) Group profit (loss) for the period/year	11	10.073	40.547
5) Minority interests	11	0	0
B) Non-current liabilities (6+7+8+9+10+11+12)		175.431	188.807
6) Financial payables	12	132.888	139.918
7) Financial liabilities - Derivative instruments	6	98	115
8) Tax payables	9	52	52
9) Deferred tax liabilities	13	22.154	23.172
10) Post-employment benefits	14	6.742	6.814
11) Provisions for risks and charges	15	10.254	15.187
12) Other liabilities	16	3.243	3.549
C) Current liabilities (13+14+15+16+17)		189.399	202.109
13) Trade and other payables	16	144.313	143.818
trade payables	16	93.749	101.711
trade payables to third parties	16	93.209	101.468
trade payables to parent company	16	107
trade payables to associates	16	41	84
trade payables to related parties	16	392	159
other payables - accrued liabilities and deferred income	16	50.564	42.107
14) Tax payables	9	12.774	10.577
of which to the parent company		7.312	4.781
15) Provisions for risks and charges	15	8.054	8.341
16) Financial liabilities - Derivative instruments	6	1	6
17) Financial payables	12	24.257	39.367
Total liabilities (A+B+C)		663.884	689.176

(Euro /000) Note	31.03.2016	31.03.2015
1) Total revenues 17	135.353	122.316
Revenues from sale of products	127.900	116.432
Revenues from services	7.453	5.884
of which from related parties	1.518	1.338
2) Cost of goods sold 18	73.226	64.420
of which non-recurring 18		(9)
of which from related parties	49	55
Gross profit (1-2)	62.127	57.896
3) Other operating revenues 19	372	691
of which from related parties
4) R&D expenses 18	12.126	11.689
of which non-recurring 18		69
of which amortisation, depreciation and write-downs pertaining to	26	26
acquisitions of which from related parties 18
5) Distribution expenses 18	25.162	24.386
of which non-recurring 18		378
of which from related parties	34	5
6) General and administrative expenses 18	10.674	11.269
of which non-recurring 18		24
of which amortisation, depreciation and write-downs pertaining to 18	1.208	1.469
acquisitions of which from related parties	316	215
7) Other operating expenses 18	327	458
of which non-recurring
of which from related parties 18		3
Total operating costs	48.289	47.802
Operating result	14.210	10.785
8) Financial income 20	15.282	30.226
of which from related parties
9) Financial expenses 20	17.088	28.643
Net financial income (expenses) (8-9)	(1.806)	1.583
10) Profits from associates 3	(145)	(60)
Profit (loss) before taxes from the operating assets	12.259	12.308
Income tax 21	2.186	2.415
Profit/(loss) for the period	10.073	9.893
Basic earnings/(loss) per share (€) 22	0,1732	0,1700
Diluted earnings/(loss) per share (€) 22	0,1732	0,1700

(Euro /000)	Note	31.03.2016	31.03.2015
Net profit/(loss) for the period		10.073	9.893
Other components of the statement of comprehensive income:
Other components of the statement of comprehensive income which will
be restated under profit/(loss) for the year:
Profit/(loss) on cash flow hedges	11	17	26
Profit/(loss) due to translation of the accounts of foreign companies	11	(4.913)	19.875
Profit (loss) on exchange rate adjustments for financial assets available
for sale	11	(98)	0
Reserve for exchange rate adjustment	11	(4.285)	8.923
Total other components of the statement of comprehensive income
which will be restated under profit/(loss) for the year		(9.279)	28.824
Total net profit/(loss) for the period		794	38.717
Attributable to:
Parent company shareholders		794	38.717
Minority interests		0	0

CONSOLIDATED STATEMENT OF CASH FLOW

(Euro /000)	Note	31.03.2016	31.03.2015
Pre-tax profit		12.259	12.308
Depreciation and amortisation of tangible and intangible assets and write-downs	1.2	4.610	4.443
Change in employee benefits reserve	14	(72)	(265)
Bad debt provisions	18	39	65
Net financial expenses/(income) including exchange rate differences	20	1.806	(1.583)
Adjustments to value of financial assets	3	145	60
Cash flow from operations before changes in working capital		18.787	15.028
Change in trade receivables (net of provision)	7	(4.143)	857
Change in final inventories	8	(13.449)	(11.532)
Change in current assets	7	(4.988)	(3.689)
Change in other medium-/long-term assets	7	13	(218)
Change in trade payables	16	(7.962)	(13.497)
Change in other current liabilities	16	8.457	2.384
Other medium/long-term liabilities	16	(306)	311
Change in provisions for risks and charges	15	(5.220)	1.655
Commercial foreign exchange differences	20	853	(1.722)
Foreign exchange effect of working capital		543	(2)
Cash flow from operations after changes in working capital		(7.415)	(10.425)
Change in tax		(2.874)	(2.314)
Foreign exchange effect of tax		(1.230)	2.340
Interest paid and banking expenses	20	(887)	(2.361)
Cash flow generated from operations (A)		(12.406)	(12.760)
(Increase)/decrease in intangible assets excluding exchange rate effect	2	(818)	(379)
(Increase)/decrease in tangible assets excluding exchange rate effect	1	(1.045)	(1.925)
Change in unconsolidated equity investments	5	2	(10)
Changes generated by investment activity (B)		(1.861)	(2.314)
Change in LT/ST financial receivables	5	107	2.310
Change in short-term and medium-/long-term financial debt	12, 6	(22.176)	15.906
Financial foreign exchange differences	20	(1.772)	5.666
Purchase/sale of treasury shares	11		(829)
Change in reserves and exchange rate effect of financial assets/liabilities, equity and tangible and intangible assets		2.270	(2.721)
Dividend payment	11
Cash flow generated (absorbed) by financial assets ( C)		(21.571)	20.332
Net increase (decrease) in available cash (A+B+C)	10	(35.838)	5.258
Net cash and cash equivalents at beginning of period (Note 10)	10	126.121	85.852
Net cash and cash equivalents at end of period (Note 10)	10	90.283	91.110

CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

Description	Share capital and capital reserves				Reserves of Statement of Comprehensive Income							Retained earnings
	Total share capital and capital reserves	Cash-flow hedge reserve	Translation reserve	Reserve for exchange rate adjustment	Actuarial gains/(losses) reserve	Held-for-sale financial assets reserve	Total Reserves of Statement of Comprehensive Income	Earnings carried forward	Capital contribution reserve	Legal reserve	IAS reserve	Total	Profit for the year	Total Group shareholders' equity
01.01.2015	147.490	(190)	2.702	5.542	(378)	218	7.894	40.674	958	4.735	8.683	55.050	30.857	241.291
Allocation of earnings	0						0	30.857				30.857	(30.857)	0
Dividends			0				0					0		0
Translation reserve	0						0					0		0
Change in IAS reserve	0						0					0		0
Sale/purchase of treasury shares	(831)						0					0		(831)
Other changes							0					0		0
Profit/(loss) as at 31.03.2015	0						0					0	9.893	9.893
Total other components of the statement of comprehensive income		26	19.875	8.923			28.824							28.824
31.03.2015	146.659	(164)	22.577	14.465	(378)	218	36.718	71.531	958	4.735	8.683	85.907	9.893	279.177
Description	Share capital and capital reserves				Reserves of Statement of Comprehensive Income							Retained earnings
	Total share capital and capital reserves	Cash-flow hedge reserve	Translation reserve	Reserve for exchange rate adjustment	Actuarial gains/(losses) reserve	Held-for-sale financial assets reserve	Total Reserves of Statement of Comprehensive Income	Earnings carried forward	Capital contribution reserve	Legal reserve	IAS reserve	Total	Profit for the year	Total Group shareholders' equity
01.01.2016	146.659	(92)	22.168	13.404	(371)	509	35.618	59.878	958	5.917	8.683	75.436	40.547	298.260
Allocation of earnings	0						0	40.547				40.547	(40.547)	0
Dividends			0				0					0		0
Translation reserve	0						0					0		0
Change in IAS reserve	0						0					0		0
Sale/purchase of treasury shares	0						0					0		0
Other changes							0					0		0
Profit/(loss) as at 31.03.2016	0						0					0	10.073	10.073
Total other components of the statement of comprehensive income		17	(4.913)	(4.285)		(98)	(9.279)					0		(9.279)
31.03.2016	146.659	(75)	17.255	9.119	(371)	411	26.339	100.425	958	5.917	8.683	115.983	10.073	299.054

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

INTRODUCTION

The Datalogic Group produces and sells handheld readers, fixed scanners for the industrial market, mobile computers, fixed scanners for the retail market and sensors. The Group is also active in self scanning solutions and products for industrial marking.

Datalogic S.p.A. (hereinafter, "Datalogic", the "Parent Company" or the "Company") is a joint-stock company listed on the STAR segment of Borsa Italiana, with its registered office in Italy. The address of the registered office is Via Candini, 2 - Lippo di Calderara (BO).

The Company is a subsidiary of Hydra S.p.A., which is also based in Bologna and is controlled by the Volta family.

This Interim report on operations as at 31 March 2016 includes the figures of the Parent Company and its subsidiaries (defined hereinafter as the "Group"), as well as its minority interests in associates.

The publication of the Interim report on operations ended 31 March 2016 of the Datalogic Group was authorised by resolution of the Board of Directors dated 13 May 2016.

PRESENTATION AND CONTENT OF THE CONSOLIDATED FINANCIAL STATEMENTS

This Interim report on operations as at 31 March 2016 was prepared pursuant to Article 154 ter of the Italian Legislative Decree no. 58/1998, and to the Consob provisions in this field.

The International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Financial Reporting Interpretations Committee (IFRIC), endorsed by the European Commission and in force when this Report was approved, were applied for the evaluation and measurement of the accounting balances.

The criteria and accounting standards are consistent with those used for the financial statements as at 31 December 2015 to which reference is made for further details.

GROUP STRUCTURE

The consolidated financial statements include the statements of the Parent Company and of the companies in which the former directly or indirectly holds the majority of voting rights.

The companies consolidated on a line-by-line basis for the period ended 31 March 2016 are as follows:

Company	Registered office		Share capital	Total shareholders' equity (€/000)	Profit/loss for the period (€/000)	% Ownership
Datalogic S.p.A.	Bologna – Italy	Euro	30,392,175	246,463	1,233
Datalogic Real Estate France Sa	Paris – France	Euro	2,227,500	3,514	(3)	100%
Datalogic Real Estate Germany GmbH	Erkenbrechtsweiler Germany	Euro	1,025,000	1,485	(30)	100%
Datalogic Real Estate UK Ltd	Redbourn- England	GBP	3,500,000	4,708	12	100%
Datalogic IP Tech S.r.l.	Bologna – Italy	Euro	65,677	(81)	864	100%
Informatics Inc.	Plano Texas - USA	\$USA	9,996,000	16,683	81	100%
Datalogic Automation S.r.l.	Monte San Pietro (BO) - Italy	Euro	10,000,000	16,007	296	100%
Datalogic Automation Inc.	Telford, USA	\$USA	6,009,352	30,475	(2,654)	100%
Datalogic Automation PTY Ltd	Mount Waverley (Melbourne)-Australia	\$AUD	3,188,118	(141)	12	100%
Datalogic Automation Asia Limited	Hong-Kong -China	HKD	7,000,000	(392)	38	100%
Datalogic (Shenzhen) Trading Business China	Shenzhen - China	CNY	2,136,696	796	(190)	100%
Datalogic Hungary kft	Fonyod-Hungary	HUF	3,000,000	986	102	100%
Datalogic ADC S.r.l.	Bologna – Italy	Euro	10,000	176,667	792	100%
Datalogic Mobile Asia	Hong-Kong -China	HKD	100,000	112	4	100%
Datalogic Slovakia S.r.o.	Trnava-Slovakia	Euro	66,388	9,793	(331)	100%
Datalogic Holdings Inc.	Eugene OR-Usa	\$USA	100	86,890	(724)	100%
Datalogic ADC Inc.	Eugene OR-Usa	\$USA	11	92,958	1,519	100%
Datalogic ADC do Brazil	Sao Paulo - Brazil	R\$	159,525	(1,348)	(26)	100%
Datalogic ADC Mexico	Colonia Cuauhtemoc Mexico	\$USA	-	14	(13)	100%
Datalogic Scanning Eastern Europe GmbH	Darmstadt-Germany	Euro	25,000	4,401	81	100%
Datalogic ADC PTY	Sidney-Australia	\$ AUD	2	1,251	20	100%
Datalogic Vietnam LLC	Vietnam	USD	3,000,000	37,538	10,543	100%
Datalogic ADC Singapore	Singapore	SGD	100,000	1,001	236	100%

The following companies were consolidated at equity as at 31 March 2016:

Company	Registered office		Share capital	Total shareholders' equity (€/000)	Profit/loss for the period (€/000)	% Ownership
Laservall Asia Co. Ltd	Hong-Kong – China	HKD	460,000	3,522	(290)	50%

Change in scope of consolidation

During the first quarter of 2016, no changes occurred in the consolidation area.

INFORMATION ON THE STATEMENT OF FINANCIAL POSITION

ASSETS

Note 1. Tangible assets

Details of movements as at 31 March 2016 and 31 December 2015 are as follows:

	31.03.2016	31.12.2015	Change
Land	5,662	5,763	(101)
Buildings	31,808	32,299	(491)
Other assets	27,300	28,029	(729)
Assets in progress and payments on account	1,555	2,293	(738)
Total	66,325	68,384	(2,059)

The "Other assets" item as at 31 March 2016 mainly includes the following categories: Industrial equipment and moulds (€8,515 thousand), Plant and machinery (€8,107 thousand), Office furniture and machines (€6,324 thousand), Maintenance on third-party assets (€1,822 thousand), General plants (€1,959 thousand), Motor vehicles (€148 thousand) and Commercial equipment and demo room (€328 thousand).

The main increases for the period related to the item Office furniture and machines (€294 thousand) and the purchase of moulds (€145 thousand).

The balance of "Assets in progress and payments on account" consists of advance payments for realization of new production lines and the down payments for equipment, instruments and moulds for normal production activities.

Note 2. Intangible assets

Details of movements as at 31 March 2016 and 31 December 2015 are as follows:

	31.03.2016	31.12.2015	Change
Goodwill	175,146	183,020	(7,874)
Development costs	4,705	5,349	(644)
Others	44,489	47,829	(3,340)
Assets in progress and payments on account	3,677	3,369	308
Total	228,017	239,567	(11,550)

"Goodwill", totalling €175,146 thousand, consisted of the following items:

	31.03.2016	31.12.2015	Change
CGU ADC	101,438	105,829	(4,391)
CGU IA	60,367	63,366	(2,999)
CGU Informatics	13,341	13,825	(484)
Total	175,146	183,020	(7,874)

The change in "Goodwill", compared to 31 December 2015, is mainly attributable to translation differences.

Goodwill has been allocated to the CGUs (cash generating units) corresponding to the individual companies and/or sub-groups to which they pertain.

As highlighted in the paragraph included in the section on accounting standards and policies used in the financial statements for the year ended 31 December 2015, to which reference should be made, in compliance with IFRS 3, goodwill has not been amortised since 1 January 2004 and is tested for impairment each year unless evidence of impairment suggests the need for more frequent testing. The estimated recoverable value of each CGU, associated with each goodwill item measured, consists of its corresponding value in use.

Value in use is calculated by discounting the future cash flows generated by the CGU – during production and at the time of its retirement – to present value using a certain discount rate, based on the Discounted cash flow method.

There were no write-downs as at 31 March 2016.

"Development costs", which amount to €4,705 thousand, consist of specific development projects capitalised when they meet IAS 38 requirements and in compliance with Group policies, which call for the capitalisation only of projects relating to development of products featuring significant innovation.

The "Others" item, which amounts to €44,489 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, which are specifically identified and valued in the context of purchase accounting. Details are shown in the following table:

	31.03.2016	31.12.2015	Useful life
Acquisition of the PSC group (on 30 November 2006)	18,118	18,582
PATENTS	18,118	18,582	20
Acquisition of Evolution Robotics Retail Inc. (on 01 July 2010)	2,615	2,895
PATENTS	436	482	10
TRADE SECRETS	2,179	2,413	10
Acquisition of Accu-Sort Inc. (on 20 January 2012)	14,450	15,734
PATENTS	8,546	9,305	10
TRADE SECRETS	5,904	6,429	10
Licence agreement	5,230	5,800	5-15
Other	4,076	4,818
TOTAL OTHER INTANGIBLE ASSETS	44,489	47,829

The "Others" item mainly consists of software licences.

The "Assets in progress and payments on account" item, equal to €3,677 thousand, is attributable, in the amount of €3,110 thousand, to the capitalisation of costs relating to the R&D projects with the features required by IAS 38 and currently still underway, as well as, in the amount of €567 thousand, to software implementations that are not yet completed.

Note 3. Equity investments in associates

	31.12.2015	Increases	Decreases	Exch. gains/(losses)	Share of profit	31.03.2016
Associates
Laservall Asia Co. Ltd	1,906				(145)	1,761
Datalogic Automation AB	2					2
Specialvideo Srl	29					29
Datasensor GMBH	45					45
Total associates	1,982	0		0 0	(145)	1,837
TOTAL	1,982	0		0 0	(145)	1,837

Equity investments owned by the Group as at 31 March 2016 were as follows:

The change in the "associates" item is due to the Group result realised by the associate Laservall Asia Co.

Note 4. Financial instruments by category

The statement of financial position items coming within the scope of "financial instruments" as defined by IAS/IFRSs are as follows:

31.03.2016	Loans and receivables	Financial assets at fair value charged to the income statement	Available for sale	Total
Non-current financial assets	3,011	30,670	4,984	38,665
Financial assets - Equity investments (5)			4,623	4,623
Financial assets - Securities			361	361
Financial assets - Loans	1,095			1,095
Financial assets - Other		30,670		30,670
Other receivables (7)	1,916			1,916
Current financial assets	180,235	0	0	180,235
Trade receivables from third parties (7)	71,480			71,480
Other receivables from third parties (7)	18,367			18,367
Financial assets - Other (5)	0			0
Financial assets - Securities (5)	0			0
Cash and cash equivalents (10)	90,388			90,388
TOTAL	183,246	30,670	4,984	218,900

			Datalogic Group
31.03.2016	Derivatives	Other financial liabilities	Total
Non-current financial liabilities	98	136,131	136,229
Financial payables (12)		132,888	132,888
Financial liabilities - Derivative instruments (6)	98		98
Other payables (16)		3,243	3,243
Current financial liabilities	1	168,030	168,031
Trade payables to third parties (16)		93,209	93,209
Other payables (16)		50,564	50,564
Financial liabilities - Derivative instruments (6)	1		1
Short-term financial payables (12)		24,257	24,257
TOTAL	99	304,161	304,260

Fair value – hierarchy

All the financial instruments measured at fair value are classified in the three categories defined below:

• Level 1: market prices
• Level 2: valuation techniques (based on observable market data),
• Level 3: valuation techniques (not based on observable market data).

31.03.2016	Level 1	Level 2	Level 3	Total
Assets measured at fair value
Financial assets - Equity Investments (5)	3,996		627	4,623
Financial assets - LT securities (5)	361			361
Financial assets - Other LTs (5)	9,773	20,897		30,670
Financial assets - Other (5)			0	0
Financial assets - Loans	0		1,095	1,095
Financial assets - ST Derivative instruments (6)				0
Total Assets measured at fair value	14,130	20,897	1,722	36,749
Liabilities measured at fair value
Financial liabilities - LT derivative instruments (6)		98		98
Financial liabilities - ST derivative instruments (6)		1		1
Total Liabilities measured at fair value	0	99	0	99

Note 5. Available-for-sale financial assets and Loans

Available-for-sale financial assets include the following items:

	31.03.2016	31.12.2015	Change
Other equity investments	4,623	4,625	(2)
Long-term government bonds	361	361	0
Other long-term financial assets	30,670	30,732	(62)
Total long-term financial assets	35,654	35,718	(64)
Long-term loans	1,095	1,140	(45)
Total financial assets	36,749	36,858	(109)

Interim Report on Operations as at 30 March 2016 – Explanatory Notes 22

The "Other long-term financial assets" item consists of an investment of corporate liquidity in two insurance policies subscribed in May and July 2014, and a mutual investment fund subscribed in August 2015. Changes, compared to December 2015, are due to the measurement at fair value.

As at 31 March 2016, equity investments held by the Group in other companies were as follows:

	31.12.2015	Increases	Decreases	Adj. to fair value	Adjustment to exchange rates	31.03.2016
Listed equity investments	3,998			(98)	96	3,996
Unlisted equity investments	627	0	0	0	0	627
Total equity investments	4,625	0	0	(98)	96	4,623

The amount of the "Listed equity investments" item is represented by the 1.2% investment in the share capital of the Japanese company Idec Corporation listed on the Tokyo Stock Exchange.

It should be highlighted that the Parent Company holds a minority interest in the Alien Technology Corporation, which was written down completely as at 31 December 2010.

Note 6. Financial derivatives

	31.03.2016			31.12.2015
	Assets	Liabilities	Assets	Liabilities
Financial instruments measured at fair value and recognised in the statement of comprehensive income
Interest rate derivatives - LT cash flow hedges	0	98	0	115
Interest rate derivatives - ST cash flow hedges	0	1	0	6
Total	0	99	0	121

Interest rate derivatives

The Group has entered into interest rate derivative contracts to manage the risk stemming from changes in interest rates on bank borrowings, converting them from variable to fixed-rate via interest rate swaps having the same amortisation plan as the hedged underlying asset. As envisaged by IAS 39, the fair value of these contracts, totalling €99 thousand, is recognised in a specific equity reserve net of the tax effect, because they hedge future cash flows and meet all IAS 39 requirements for the application of hedge accounting.

As at 31 March 2016, the notional principal of interest swaps totalled €6,938 thousand (€7,875 thousand as at 31 December 2015).

Currency derivatives

As at 31 March 2016, the Group had no active forward contracts for exchange rate risk.

Note 7. Trade and other receivables

Trade and other receivables

	31.03.2016	31.12.2015	Change
Third-party trade receivables	72,681	68,492	4,189
Less bad debt provisions	1,201	1,183	18
Net third-party trade receivables	71,480	67,309	4,171
Receivables from associates	1,389	1,456	(67)
Idec Datalogic CO Ltd		0	0
Laservall Asia	215	541	(326)
Aczon		9	(9)
Datasensor GMBH	109	88	21
Specialvideo		1	(1)
Datalogic Automation AB	1,065	817	248
Total Trade receivables	72,869	68,765	4,104
Other receivables - current accrued income and prepaid expenses	18,568	13,580	4,988
Other receivables - non-current accrued income and prepaid expenses	1,916	1,929	(13)
Total other receivables - accrued income and prepaid expenses	20,484	15,509	4,975
Less non-current portion	1,916	1,929	(13)
Trade and other receivables - current portion	91,437	82,345	9,092

Trade receivables

"Trade receivables falling due within 12 months" as at 31 March 2016 are equal to €72,869 thousand, up by 6% by comparison with 31 December 2015.

As at 31 March 2016, trade receivables assigned to the factoring amounted to €19,569 thousand (compared to €26,180 thousand at the end of 2015).

Receivables from associates arise from commercial transactions carried out at arm's length conditions.

Customer trade receivables are posted net of bad debt provisions totalling €1,201 thousand (€1,183 thousand as at 31 December 2015).

Other receivables - accrued income and prepaid expenses

The detail of the item "Other receivables - accrued income and prepaid expenses" is as shown below:

	31.03.2016	31.12.2015	Change
Other short-term receivables	3,605	2,848	757
Other long-term receivables	1,916	1,929	(13)
VAT receivables	11,977	8,369	3,608
Accrued income and prepaid expenses	2,986	2,363	623
Total	20,484	15,509	4,975

Note 8. Inventories

	31.03.2016	31.12.2015	Change
Raw and ancillary materials and consumables	28,157	18,056	10,101
Work in progress and semi-finished products	26,296	24,409	1,887
Finished products and goods	28,473	27,012	1,461
Total	82,926	69,477	13,449

The increase in Inventories, net of the exchange rate effect, would result equal to €15,460 thousand.

Note 9. Tax payables and receivables

As at 31 March 2016, the "Tax receivables" item amounted to €14,542 thousand, down by €521 thousand (€15,063 thousand as at 31 December 2015). This item includes the amount receivable from the Parent Company Hydra relating to the IRES (corporate tax) credit arising from participation in tax consolidation, equal to €6,826 thousand, down by €557 thousand (€7,383 thousand as at 31 December 2015).

As at 31 March 2016, the "Tax payables" item amounted to €12,774 thousand, up by €2,197 thousand (€10,577 thousand as at 31 December 2015). This item includes the amount payable to the Parent Company Hydra relating to the IRES (corporate tax) liability arising from participation in tax consolidation, equal to €7,312 thousand as at 31 March 2016 (€4,781 thousand as at 31 December 2015).

Note 10. Cash and cash equivalents

Cash and cash equivalents are broken down as follows for the purposes of the cash flow statement:

	31.03.2016	31.12.2015	Change
Cash and cash equivalents shown on financial statements	90,388	126,212	(35,824)
Restricted cash	(46)	(46)	0
Current account overdrafts	(59)	(45)	(14)
Cash and cash equivalents for statement	90,283	126,121	(35,838)

According to the requirements of Consob Communication no. 15519 of 28 July 2006, the Group's financial position is reported in the following table:

	31.03.2016	31.12.2015
A. Cash and bank deposits	90,342	126,166
B. Other cash and cash equivalents	46	46
b1. restricted cash deposit	46	46
C. Securities held for trading	361	361
c1. Short-term	0	0
c2. Long-term	361	361
D. Cash and equivalents (A) + (B) + (C)	90,749	126,573
E. Current financial receivables	0	0
F. Other current financial receivables	0	0
f1. hedging transactions	0	0
G. Bank overdrafts	59	45
H. Current portion of non-current debt	19,966	32,973
I. Other current financial payables	4,233	6,355
i1. hedging transactions	1	6
i2. payables for leasing	263	260
i3. current financial payables	3,969	6,089
J. Current financial debt (G) + (H) + (I)	24,258	39,373
K. Current financial debt, net (J) - (D) - (E) - (F)	(66,491)	(87,200)
L. Non-current bank borrowing	132,685	139,639
M. Other non-current financial assets	31,765	31,872
N. Other non-current liabilities	301	394
n1. hedging transactions	98	115
n2. payables for leasing	203	279
O. Non-current financial debt (L) - (M) + (N)	101,221	108,161
P. Net financial debt (K) + (O)	34,730	20,961

Net financial debt as at 31 March 2016 was negative by €34,730 thousand, a worsening €13,769 thousand compared to 31 December 2015, (when it was negative by €20,961 thousand). The change is primarily due to investments made over the period and the increase, which is typical of the first quarter of each year, of the net trading working capital.

Investments over the period, net of disinvestments, amounted to €1,863 thousand.

INFORMATION ON STATEMENT OF FINANCIAL POSITION

SHAREHOLDERS' EQUITY AND LIABILITIES

Note 11. Shareholders' Equity

The detail of equity accounts is shown below, while changes in equity are reported in the specific statement:

	31.03.2016	31.12.2015
Share capital	30,392	30,392
Extraordinary share-cancellation reserve	2,813	2,813
Treasury shares held in portfolio	4,488	4,488
Treasury share reserve	2,453	2,453
Share premium reserve	106,513	106,513
Share capital and capital reserves	146,659	146,659
Cash-flow hedge reserve	(75)	(92)
Translation reserve	17,255	22,168
Reserve for exchange rate adjustment	9,119	13,404
Actuarial gains/(losses) reserve	(371)	(371)
Held-for-sale financial assets reserve	411	509
Other reserves	26,339	35,618
Retained earnings	115,983	75,436
Earnings carried forward	100,425	59,878
Capital contribution reserve	958	958
Legal reserve	5,917	5,917
IAS reserve	8,683	8,683
Profit for the year	10,073	40,547
Total Group shareholders' equity	299,054	298,260

Share capital

Movements in share capital as at 31 March 2016 are reported below (in Euro '000):

	Number of shares	Share capital	Extraordinary share cancellation reserve	Treasury shares held in portfolio	Treasury share reserve	Share premium reserve	Total
01.01.2016	58,171,881	30,392	2,813	4,488	2,453	106,513	146,659
Purchase of treasury shares	0			0	0	0	0
Costs for the purchase/sale of treasury shares				0			0
31.03.2016	58,171,881	30,392	2,813	4,488	2,453	106,513	146,659

Extraordinary share-cancellation reserve

The Extraordinary Shareholders' Meeting of Datalogic S.p.A., held on 20 February 2008, approved a reduction of share capital through the cancellation of 5,409,981 treasury shares (equal to 8.472% of the share capital), owned by the Company.

When these shares were cancelled, as resolved by the Extraordinary Shareholders' Meeting, a sharecancellation reserve was set aside for the amount of €2,813 thousand, through the use of the share premium reserve. Therefore, this reserve remained classified under item "Share Capital".

Ordinary shares

As at 31 March 2016, the total number of ordinary shares was 58,446,491, including 274,610 held as treasury shares, making the number of shares in circulation at that date 58,171,881. The shares have a nominal unit value of €0.52 and are fully paid up.

Treasury shares

The item "Treasury shares", amounting to €4,488 thousand, includes capital gains/(losses) resulting from the sale of treasury shares, net of purchases and related charges (€6,941 thousand). In the first quarter of 2016, the Group acquired no shares.

In accordance with Article 2357 of the Italian Civil Code, the Treasury share reserve, in the amount of €2,453 thousand, was made unavailable by using the Share premium reserve.

Other Reserves

Cash-flow hedge reserve

Following adoption of IAS 39, the change in fair value of derivative contracts designated as effective hedging instruments is recognised in accounts directly with shareholders' equity, in the cash-flow hedge reserve. These contracts were entered to hedge exposure to the risk of interest rate fluctuations on variable-rate loans. Change in fair value is negative for €99 thousand and it is disclosed net of tax effect (€24 thousand).

Translation reserve

In compliance with IAS 21, translation differences arising from translation of the foreign currency financial statements of consolidated companies into the Group accounting currency are classified as a separate equity component.

Reserve for exchange rate adjustment

In application to IAS 21.15, this reserve comprises profit/losses generated by monetary elements which are an integral part of the net investment of foreign managements. In particular, it relates to the effect of exchange rates measurement at year-end for receivables for loans in US dollars granted to some Group companies by the Parent Company Datalogic S.p.A. and Datalogic Holdings Inc.. For these loans no regulation and/or a defined reimbursement plan are provided not is it deemed probable that they will be reimbursed in the foreseeable future.

Actuarial gains and losses reserve

Pursuant to IAS 19R, this reserve includes actuarial gains and losses, which are now recognised under other components in the comprehensive income statement and permanently excluded from the income statement.

Retained earnings

IAS reserve

This reserve was created upon first-time adoption of international accounting standards as at 1 January 2004 (Consolidated Financial statements for the year ended 31 December 2003) pursuant to IFRS 1.

Profits/losses of previous years

This item includes equity changes occurring in consolidated companies after acquisition date.

Dividends

On 2 May 2016, the Ordinary Shareholders' Meeting of Datalogic S.p.A. decided to distribute an ordinary dividend of €0.25 per share (€0.18 in 2015). Total dividends will be paid as from 11 May 2016.

The reconciliation between the Parent Company's shareholders' equity and net profit and the corresponding consolidated amounts is as shown below:

	31 March 2016		31 December 2015
	Total equity	Period results	Total equity	Period results
Parent Company shareholders' equity and profit	246,463	1,233	250,417	27,474
Difference between consolidated companies' shareholders' equity and their carrying value in the Parent Company's financial statements; effect of equity-based valuation	112,012	9,940	108,261	76,703
Reversal of dividends				(63,097)
Amortisation of intangible assets "business combination"	(5,827)		(5,827)
Effect of acquisition under common control	(31,733)		(31,733)
Elimination of capital gain on sale of business branch	(18,665)		(18,665)
Effect of eliminating intercompany transactions	(10,801)	(1,081)	(11,826)	(244)
Reversal of write-downs and capital gains on equity investments	6,121		6,121
Sale of know-how	(7)		(7)
Goodwill impairment	(1,395)		(1,395)
Other	(1,422)	(280)	(1,133)	(324)
Deferred taxes	4,308	261	4,047	35
Group shareholders' equity	299,054	10,073	298,260	40,547

Note 12. Financial payables

The breakdown of the item, divided by short/long-term classification, is shown in the following table:

	31.03.2016	31.12.2015	Change
Long-term financial payables	132,888	139,918	(7,030)
Short-term financial payables	24,257	39,367	(15,110)
Total financial payables	157,145	179,285	(22,140)

The breakdown of this item is as detailed below:

	31.03.2016	31.12.2015	Change
Bank loans	152,651	172,612	(19,961)
Other	0	80	(80)
Payables to factoring companies	3,969	6,009	(2,040)
Payables for leasing	466	539	(73)
Bank overdrafts (ordinary current accounts)	59	45	14
Total financial payables	157,145	179,285	(22,140)

The breakdown of changes in the "Bank loans" item as at 31 March 2016 and 31 March 2015 is shown below:

2016	2015
172,612	163,649
0	940
0	139,277
(19,961)	(125,263)
152,651	178,603

The decrease of the repayment refers to the hot money in the amount of € 20,000 thousand.

The fair value of the loans (current and non-current) coincides substantially with their book value.

Note 13. Net deferred taxes

Deferred tax assets and liabilities stem both from positive items already recognised in the income statement and subject to deferred taxation under current tax regulations and temporary differences between consolidated balance-sheet assets and liabilities and their relevant taxable value.

The total of net deferred taxes is broken down as follows:

	31.03.2016	31.12.2015	change
Deferred tax assets	49,747	47,359	2,388
Deferred tax liabilities	(22,154)	(23,172)	1,018
Net deferred taxes	27,593	24,187	3,406

The breakdown per company of deferred taxes is shown below:

	31.03.2016	31.12.2015	change
Datalogic Automation Inc.	11,693	10,756	937
Datalogic ADC Inc.	4,743	5,299	(556)
Datalogic Holding Inc	5,999	5,849	150
Informatics Inc.	816	905	(89)
Datalogic S.p.A.	(4,389)	(6,621)	2,232
Datalogic IP Tech S.r.l.	4,094	4,549	(455)
Datalogic Automation S.r.l.	945	613	332
Datalogic ADC S.r.l.	388	(55)	443
Datalogic Slovakia Sro	1,209	903	306
Datalogic ADC do Brazil	359	464	(105)
Datalogic Scanning E.E.	(442)	(442)	0
Datalogic RE Germany GmbH	(75)	(75)	0
Datalogic RE France SaS	52	52	0
Datalogic RE Uk Ltd	112	121	(9)
Datalogic ADC VN	336	395	(59)
Datalogic ADC PTY	128	127	1
Datalogic ADC HK Ltd	(3)	(3)	0
Datalogic ADC Singapore	(9)	(9)	0
Total net long-term deferred taxes	25,956	22,828	3,128
Deferred taxes recognised due to the consolidation entries	1,637	1,359	278
Total net long-term deferred taxes	27,593	24,187	3,406

The positive change of net deferred taxes of Datalogic S.p.A. is attributable, in the amount of €1,612 thousand, to taxes related to exchange rates measurement at year-end for receivables for loans in US dollars, directly recognised to Shareholders' Equity.

Note 14. Post-employment benefits

The breakdown of changes in the "Post-employment benefits" item as at 31 March 2016 and 31 March 2015 is shown below:

	2016	2015
1 January	6,814	7,201
Amount allocated in the period	394	355
Uses	(422)	(497)
Other movements	0	22
Social security receivables for the employee severance indemnity reserve	(44)	(145)
31 March	6,742	6,936

Note 15. Provisions for risks and charges

The breakdown of the "provisions for risks and charges" item was as follows:

	31.03.2016	31.12.2015	Change
Short-term provisions for risks and charges	8,054	8,341	(287)
Long-term provisions for risks and charges	10,254	15,187	(4,933)
Total	18,308	23,528	(5,220)

Below we show the detailed breakdown of and changes in this item:

	31.12.2015	Increases	(Uses) and (Releases)	Transfers	Diff. exchange rate	31.03.2016
Product warranty provision	9,775	246	(78)		(275)	9,668
Provision for management incentive scheme	8,441			(4,847)		3,594
"Stock rotation" provision	2,865	58	(194)		(64)	2,665
Other	2,447	50	(61)		(55)	2,381
Total Provisions for risks and charges	23,528	354	(333)	(4,847)	(394)	18,308

The "Product warranty provision" covers the estimated cost of repairing products sold as up to 31 March 2016 and covered by periodical warranty; it amounts to €9,668 thousand (of which €6,296 thousand longterm) and is considered sufficient in relation to the specific risk it covers.

The "Provision for management incentive scheme" was transferred, in the amount of €4,847 thousand, to item "Other short-term payables", as it will be paid after the Shareholders' Meeting called to approve the 2015 financial statements.

The "Stock rotation provision", equal to €2,665 thousand, is related to the ADC Group and Informatics.

The "Other" item mainly comprises:

• €1,499 thousand for a possible tax liability related to a company outside the Group;
• €320 thousand for agent termination indemnities;
• €279 thousand for legal dispute;
• € 162 thousand for a pending tax dispute related to some Italian companies.

Note 16. Trade and other payables

This table shows the details of trade and other payables:

	31.03.2016	31.12.2015	Change
Trade payables due within 12 months	93,209	101,468	(8,259)
Third-party trade payables	93,209	101,468	(8,259)
Payables to associates	41	84	(43)
Laservall Asia	41	82	(41)
Datalogic Automation AB		2	(2)
Payables to the parent company	107	0	107
Hydra	107	0	107
Payables to subsidiaries	0	0	0
Payables to related parties	392	159	233
Total Trade payables	93,749	101,711	(7,962)
Other payables - current accrued liabilities and deferred income	50,564	42,107	8,457
Other payables - non-current accrued liabilities and deferred income	3,243	3,549	(306)
Total other payables - accrued liabilities and deferred income	53,807	45,656	8,151
Less non-current portion	3,243	3,549	(306)
Current portion	144,313	143,818	495

The decrease in trade payables, equal to €7,962 thousand, is attributable, in the amount of €2,598 thousand, to the exchange rate effect.

Other payables – accrued liabilities and deferred income

The detailed breakdown of this item is as follows:

	31.03.2016	31.12.2015	Change
Other long-term payables	3,243	3,549	(306)
Other short-term payables:	28,160	21,398	6,762
Payables to employees	18,009	14,790	3,219
Payables to pension and social security agencies	3,665	4,813	(1,148)
Payables for LT MIP	4,847		4,847
Other payables	1,639	1,795	(156)
VAT liabilities	2,483	1,868	615
Accrued liabilities and deferred income	19,921	18,841	1,080
Total	53,807	45,656	8,151

Payables to employees are the amounts due for wages and salaries and holidays, accrued with respect to staff at balance-sheet date. It is worth noting that this item includes €522 thousand related to the debt for the management incentive scheme related to re-organisation occurred in 2015.

INFORMATION ON THE STATEMENT OF INCOME

Note 17. Revenues

	Quarter ended
	31.03.2016	31.03.2015	Change
Revenues from sale of products	127,900	116,432	11,468
Revenues from services	7,453	5,884	1,569
Total revenues	135,353	122,316	13,037

Revenues earned from sales of goods and services increased by 10.7% compared to the same period of the previous year (9.6% at constant Euro/Dollar exchange rates).

The following table shows the breakdown of revenues per geographical areas:

	Quarter ended
	31.03.2016	31.03.2015		Change
Revenues in Italy	12,680	12,743	(0.5%)	(63)
Revenues in Europe	60,464	51,190	18.1%	9,274
Revenues in North	39,556	33,601	17.7%	5,955
America
Revenues in Asia & Pacific	14,871	15,578	(4.5%)	(707)
Revenues in Rest of the	7,782	9,204	(15.4%)	(1,422)
World
Total revenues	135,353	122,316	10.7%	13,037

Note 18. Cost of goods sold and operating costs

Pursuant to the introduction of IAS principles, the following table reports non-recurring costs and amortisation arising from acquisitions as extraordinary items no longer listed separately but included in ordinary operations.

	Quarter ended
	31.03.2016	31.03.2015 Reclassified	Change
TOTAL COST OF GOODS SOLD (1)	73,226	64,420	8,806
of which non-recurring	0	(9)	9
TOTAL OPERATING COSTS (2)	48,289	47,802	487
Research and Development expenses	12,126	11,689	437
of which non-recurring	0	69	(69)
of which amortisation, depreciation pertaining to acquisitions	26	26	0
Distribution expenses	25,162	24,386	776
of which non-recurring	0	378	(378)
General and administrative expenses	10,674	11,269	(595)
of which non-recurring	0	24	(24)
of which amortisation, depreciation pertaining to acquisitions	1,208	1,469	(261)
Other operating costs	327	458	(131)
of which non-recurring	0	0	0
TOTAL (1+2)	121,515	112,222	9,293
of which non-recurring costs	0	462	(462)
of which amortisation, depreciation pertaining to acquisitions	1,234	1,495	(261)

Interim Report on Operations as at 30 March 2016 – Explanatory Notes 34

The amortisation from acquisitions (equal to €1,234 thousand) mainly included under "General and administrative expenses" (€1,208 thousand) are comprised of:

	Quarter ended
	31.03.2016	31.03.2015	Change
Acquisition of the PSC group (on 30 November 2006)	459	619	(160)
Acquisition of Informatics Inc. (on 28 February 2005)	0	118	(118)
Acquisition of Evolution Robotics Retail Inc. (on 01 July 2010)	159	155	4
Acquisition of Accu-Sort Inc. (on 20 January 2012)	616	603	13
TOTAL	1,234	1,495	(261)

Total cost of goods sold (1)

This item increased by 13.7% compared to the same period in 2015. At constant Euro/Dollar exchange rates and net of non-recurring costs, the increase would have been equal to 11.7%.

Total operating costs (2)

The operating costs, excluding non-recurring costs and the amortisation inherent in the acquisitions, increased by 2.7% from €45,836 thousand to €47,055 thousand. At constant exchange rates and net of extraordinary costs, the increase was reported with the same percentage (+2.4%).

In particular:

• "R&D expenses" amounted to €12,126 thousand and increased, net of non-recurring costs, by €506 thousand compared to the same period of the previous year (+€382 thousand, at constant exchange rates and net of non-recurring costs). This increase is primarily attributable to the increase in payroll & employee benefits, expenses for patents and trademarks, as well as consumables.
• "Distribution expenses" amounted to €25,162 thousand and, net of non-recurring costs, increased by €1,154 thousand with respect to the comparison period. Based on the analysis at constant exchange rates, and net of non-recurring costs, a net increase of €1,165 thousand is reported, determined by an increase in payroll & employee benefits and an increase in shipment costs, travel and accommodation expenses, costs for meetings and an increase in sales costs. The 1% decrease in the impact on revenues is to be noted.
• "General and administrative expenses" amounted to €10,674 thousand. This item, net of nonrecurring costs, decreased by €310 thousand, compared to the same period of the previous year, while, at constant exchange rates, and net of non-recurring costs reported a decrease of €329 thousand compared to the same period of the previous year.

The detailed breakdown of item "Other operating costs" is as follows:

	Quarter ended
	31.03.2016	31.03.2015	Change
Non-income taxes	254	228	26
Contingent liabilities	22	4	18
Bad debt provisions	39	65	(26)
Cost charge backs	4	108	(104)
Capital losses on assets	1	0	1
Other	7	53	(46)
Total	327	458	(131)

Breakdown of costs by type

The following table provides the details of total costs (cost of goods sold and total operating costs) by type, for the main items:

	Quarter ended
	31.03.2016	31.03.2015	Change
Purchases	64,817	53,608	11,209
Inventory change	(12,224)	(7,026)	(5,198)
Payroll & employee benefits	39,245	38,740	505
Amortisation, depreciation and write-downs	4,610	4,443	167
Goods receipt & shipment	4,519	3,958	561
Marketing expenses	2,454	2,277	177
Travel & accommodation	2,213	2,142	71
Technical, legal and tax advisory services	1,816	1,534	282
Building expenses	1,534	1,644	(110)
Material collected from the warehouse	1,279	1,230	49
Repairs	1,256	1,211	45
EDP expenses	965	720	245
Royalties	829	379	450
Consumables	745	554	191
Subcontracted work	662	748	(86)
Telephone expenses	622	550	72
Vehicle expenses	593	585	8
Utilities	512	526	(14)
Meeting expenses	475	344	131
Sundry service costs	460	522	(62)
Commissions	400	377	23
Accounts certification expenses	371	391	(20)
Directors' remuneration	347	424	(77)
Quality certification expenses	268	323	(55)
Expenses for plant and machinery and other assets	240	190	50
Insurance	236	270	(34)
Entertainment expenses	190	173	17
Training courses for employees	144	113	31
R&D materials	88	136	(48)
Stationery and printings	70	123	(53)
Other	1,779	1,013	766
Total cost of goods sold and operating costs	121,515	112,222	9,293

Expenses reported in item "Goods receipt & shipment" increased, albeit the impact of shipment costs on sales remained unchanged.

The increase in item "Meeting expenses" (+€131 thousand), is primarily attributable to important meetings of the sales force.

The item "Marketing expenses", equal to €2,454 thousand, increased by €177 thousand compared to the same period of 2015, mainly due to the decrease in Marketing co-participation expenses with trade partners and in costs for exhibitions, which offsets the decrease in advertising expenses.

The item "Technical, legal and tax advisory services", equal to €1,816, reported an increase compared to the previous year, especially in relation to expenses for patents and branding and hiring of personnel.

The item "EDP expenses" increased by €245 thousand, mainly due to new maintenance fees for software systems.

The "Other" item mainly consists of several costs all of which are lower than €100 thousand.

The detailed breakdown of payroll & employee benefits is as follows:

	Quarter ended
	31.03.2016	31.03.2015	Change
Wages & salaries	31,233	30,161	1,072
Social security charges	5,486	5,187	299
Employee severance indemnities	466	423	43
Retirement and similar benefits	272	301	(29)
Medium- to long-term managerial incentive plan	0	884	(884)
Expenses for employees' vehicles	480	399	81
Other costs	1,219	923	296
Early retirement incentives	89	462	(373)
Total	39,245	38,740	505

The "Wages and salaries" item, equal to €31,233 thousand, includes sales commissions and incentives of €4,099 thousand (€3,535 thousand as at 31 March 2015). The increase, at constant exchange rates, in item "Wages and salaries" (equal to €912 thousand) is primarily related to increased in-house R&D activities and the hiring of personnel in the commercial sector.

Note 19. Other operating revenues

The detailed breakdown of this item is as follows:

	Quarter ended
	31.03.2016	31.03.2015	Change
Miscellaneous income and revenues	217	290	(73)
Rents	19	16	3
Capital gains on asset disposals	125	3	122
Contingent assets	6	3	3
Grants to Research and Development expenses	0	295	(295)
Other	5	84	(79)
Total	372	691	(319)

The item Miscellaneous income and revenues mainly includes revenues for self-manufactured equipment and reimbursements from employees for the use of vehicles for the pertaining portion.

The increase in item "Capital gains on asset disposals" is mainly attributable to the sale of some patents.

Note 20. Net financial income (expenses)

	Quarter ended
	31.03.2016	31.03.2015	Change
Financial income/(expenses)	(464)	(843)	379
Foreign exchange differences	(919)	3,944	(4,863)
Bank expenses	(377)	(1,682)	1,305
Other	(46)	164	(210)
Total net financial income (expenses)	(1,806)	1,583	(3,389)

Financial income was negative by €1,806 thousand, compared to a negative result of €1,583 thousand related to the same period of the previous year, mainly due to a more unfavourable trend of Foreign exchange differences, which reported a negative increase of €4,863 thousand.

The item "Financial income/(expenses)" improved by €379 thousand, mainly due to the entering of a new loan agreement with a pool of banks for the amount of €140 million on 24 February 2015 and the redemption, at the same time, of previous loans amounting to €126 million. This transaction allowed for an increase in the average life of the financial debt and the reduction in the related charges.

The item "Bank expenses" (improved by €1,305 thousand), mainly includes:

• the portion pertaining to the upfront fees period, paid upon opening of long-term loans, in the amount of €53 thousand, (€1,262 thousand as at 31 March 2015, of which €1,250 thousand connected with the early redemption of some long-term loans);
• factoring costs, amounting to €92 thousand (€214 thousand as at 31 March 2015), related to commissions without recourse.

Losses generated by companies carried at equity were recognised in the amount of €145 thousand (€60 thousand as at 31 March 2015).

Note 21. Taxes

		Quarter ended
	31.03.2016	31.03.2015	Change
Income tax	4,783	3,940	843
Deferred taxes	(2,597)	(1,525)	(1,072)
Total	2,186	2,415	(229)

The average tax rate comes to 17.8% (19.6% as at 31 March 2015).

Note 22. Earnings/loss per share

Earnings/loss per share

	Quarter ended
	31.03.2016	31.03.2015
Group earnings/(loss) for the period	10,073,000	9,893,000
Average number of shares	58,171,881	58,204,238
Earnings/(loss) per share	0.1732	0.1700

EPS as at 31 March 2016 was calculated by dividing Group net profit of €10,073 thousand (Group net profit of €9,893 thousand as at 31 March 2015) by the average number of ordinary shares outstanding as at 31 March 2016, equal to 58,171,881 shares (58,204,238 as at 31 March 2015).

TRANSACTIONS WITH SUBSIDIARIES THAT ARE NOT FULLY CONSOLIDATED, ASSOCIATES AND RELATED PARTIES

For the definition of "Related parties", see both IAS 24, approved by EC Regulation 1725/2003, and the Procedure for Transactions with Related Parties approved by the Board of Directors on 4 November 2010 (finally amended on 24 July 2015), and that is available on the Company's internet site www.datalogic.com.

The parent company of the Datalogic Group is Hydra S.p.A..

Infragroup transactions are executed as part of the ordinary operations and at arm's length conditions. Furthermore, there are other relationships with related parties, always carried out as part of the ordinary operations and at arm's length conditions, chiefly with parties that control the Parent Company, or with individuals that carry out the coordination and management of Datalogic S.p.A..

Related-party transactions refer chiefly to commercial and real estate transactions (instrumental and noninstrumental premises for the Group under lease or leased to the parent company) as well as to companies joining the scope of tax consolidation. None of these assumes particular economic or strategic importance for the Group since receivables, payables, revenues and costs to the related parties are not a significant proportion of the total amount of the financial statements.

Pursuant to Article 5, par. 8, of the Consob Regulations, it should be noted that, over the period 01/01/2016 - 31/03/2016, the Company's Board of Directors did not approve any relevant transaction, as set out by Article 3, par. 1, lett. b) of the Consob Regulations, or any transaction with minority related parties that had a significant impact on the Group's equity position or profit/(loss).

RELATED PARTIES	Hydra (parent company)	Hydra Immobiliare and Aczon	Non consolidated Automation Group companies	Studio Associato Caruso	Natural person	Macoa Gmbh	Natural person	Laservall Asia	TOTAL 30.03.16
	parent company	company controlled by Chairman of BoD	associates	company controlled by a BoD member	Key manager	company controlled by a BoD member	Close relative of a Director	associated company
Equity investments	0	0	76	0	0		0	1,761	1,837
IA Group			76					1,761	1,837
Trade receivables - accrued income and prepaid expenses	0	75	1,174	126	0	0	0	215	1,590
IA Group		75	1,130	11				215	1,431
ADC Group			44						44
Dl Spa				115					115
Receivables pursuant to tax consolidation	6,826	0	0	0	0	0	0	0	6,826
Dl IP Tech Srl	6,826								6,826
Financial receivables	0	0	0	0	0	0	0	0	0
Liabilities pursuant to tax consolidation	7,312	0	0	0	0	0	0	0	7,312
DI ADC	3,553								3,553
Dl Automation Srl	3,247								3,247
Dl Spa	512								512
Trade payables	0	114	0	190	25	63	0	41	433
Dl Spa				154	25	63			242
Dl IP Tech Srl				4					4
ADC Srl		5		10					15
Automation Group		109		22				41	172
Financial payables	0	0	0	0	0	0	0	0	0
Sales / service expenses	0	170	2	86	25	65	2	49	399
Dl Spa		17		59	25	65			166
Dl IP Tech Srl				5					5
ADC Group		30	2	11			2		45
Automation Group		123		11				49	183
Commercial
revenues	0	0	1,191	0	0		0	327	1,518
ADC Group			38						38
Automation Group		0	1,153					327	1,480
Financial income	0	0	0	0	0		0	0	0
Profits (losses) from associates	0	0	0	0				(145)	(145)
Automation Group								(145)	(145)

NUMBER OF EMPLOYEES

	Quarter ended
	31.03.2016	31.03.2015	Change
Industrial Automation Group	856	797	59
Automatic Data Capture Group	1,536	1,463	73
Corporate Group	135	129	6
Informatics	102	102	0
Total	2,629	2,491	138

The Chairman of the Board of Directors Mr. Romano Volta

Annex 1 RESTATED CONSOLIDATED INCOME STATEMENT - 2015

(Euro /000)		Note 31.03.2015	Reclassifications	31.03.2015
1) Total revenues	17	122.316		Reclassified 122.316
Revenues from sale of products		116.432		116.432
Revenues from services		5.884		5.884
of which non-recurring
of which from related parties		1.338		1.338
2) Cost of goods sold	18	65.208	(788)	64.420
of which non-recurring	18	(9)		(9)
of which from related parties		55		55
Gross profit (1-2)		57.108	788	57.896
3) Other operating revenues	19	691		691
of which non-recurring	19			0
of which from related parties				0
4) R&D expenses	18	11.689		11.689
of which non-recurring	18	69		69
of which amortisation, depreciation and write-downs pertaining to		26		26
acquisitions of which from related parties	18			0
5) Distribution expenses	18	23.598	788	24.386
of which non-recurring	18	378		378
of which from related parties		5		5
6) General and administrative expenses	18	11.269		11.269
of which non-recurring	18	24		24
of which amortisation, depreciation and write-downs pertaining to	18	1.469		1.469
acquisitions of which from related parties		215		215
7) Other operating expenses	18	458		458
of which non-recurring	18	3		3
Total operating costs		47.014	788	47.802
Operating result		10.785	0	10.785
8) Financial income	20	30.226		30.226
of which from related parties				11
9) Financial expenses	20	28.643		28.643
Net financial income (expenses) (8-9)		1.583	0	1.583
10) Profits from associates	3	(60)		(60)
Profit (loss) before taxes from the operating assets		12.308	0	12.308
Income tax	21	2.415		2.415
Profit/(loss) for the period		9.893	0	9.893
Basic earnings/(loss) per share (€)	22	0,1700		0,1700
Diluted earnings/(loss) per share (€)	22	0,1700		0,1700

Note: 2015 figures have been reclassified to render them consistent with 2016 figures, in light of some reorganisation made.

DICHIARAZIONE AI SENSI DELL'ART. 154 BIS, COMMA 2, D.LGS. N. 58/1998

Resoconto Intermedio di gestione al 31 marzo 2016

Il sottoscritto Dott. Stefano Biordi, quale Dirigente Preposto alla redazione dei documenti contabili societari di Datalogic S.p.A.

attesta

in conformità a quanto previsto dal secondo comma dell'art. 154 bis, comma secondo, del decreto legislativo 24 febbraio 1998, n. 58 che il resoconto intermedio di gestione al 31 marzo 2016 corrisponde alle risultanze documentali, ai libri e alle scritture contabili.

Datalogic S.p.A.

(Stefano Biordi)